2015 HTC CSR Report

HTC Corporation
HQ & Factory
No 23, Xinghua Rd, Taoyuan City, Taoyuan County, Taiwan+886-3-3753252

Corporate Social Responsibility Report

Taipei Office
TPE1: No 88, Sec 3, Zhongxing Rd, Xindian Dist, New Taipei City, Taiwan
TPE2: 1F, No 6-3, Baoqiang Rd, Xindian Dist, New Taipei City, Taiwan+886-2-89124138+886-2-89124138

2015

http://www.htc.com

HTC Corporation

Editorial Principle
Thank you for reading the fourth Corporate Social Responsibility (CSR) Report issued by the HTC
Corporation (HTC). HTC has an open and honest approach to the review and disclosure of our executive
performance related to all CSR matters and offers our stakeholders a clear picture of all the related issues. Our
aim is to use our brand’s influence to integrate our CSR strategies into the organization, and we start off with acomprehensive response to all these issues.
As a global mobile-device brand, we are ready to confront all the challenges that might present themselves. For
each major CSR issue that relates to our future development, we make it clear at the beginning of each section
which challenge we are facing, our current achievements, and our goals for future development.

Time Coverage of Disclosure
We plan to issue the HTC Corporate Social Responsibility Report annually. This report generally covers theyear 2015 from January 1 to December 31. However, in order to provide a more complete picture of all our CSR
achievements in various aspects to date, the content and information about some issues refers to work carriedout in 2014 to 2016 May, as well as the HTC CSR management policies, key issues, and performance, responses
and activities for previous years.

Report Basis

By understanding and commitment to these issues, HTC will define and confirm our direction towardsustainable development, and also let our stakeholders know everything about our performance and theresults with respect to CSR in 2015.

This report has been prepared in accordance with the Global Reporting Initiative (GRI) G4 Core Option andAA1000 (2008) standards and has been confirmed by SGS-Taiwan to be in compliance with AA1000AS Type II
top-level assurance and GRI G4 Core option.

This report has been prepared in Chinese and English. Both versions are posted on our official website and areavailable for download (www.csr.htc.com).

Global standards and guiding principles

HTC CSR Website
This website is updated annually to inform all stakeholders and the public about
HTC CSR activities. Please use the following link to access the HTC website: www.
csr.htc.com

The HTC 2015 CSR Report is downloadable in PDF format.format.

United Nations Global Impact: Although Taiwan is not a member of the United Nations (UN), the HTC
Corporation, as a renowned international company, is committed to operating in accordance with the UN Global
Impact and the ten principles of 2001. For details of HTC’s efforts in the direction of the ten principles, please
see the annual report.
Guiding principles for ISO 26000: The HTC annual report also provides a matchup between the social
responsibility guidelines drafted and formulated by the International Organization for Standardization (ISO)and the efforts made by HTC to concretize the seven core subjects of corporate social responsibility (CSR) as
defined in ISO 26000. These include organizational governance, human rights, the environment, fair operating
practices, consumer issues and community involvement. Please see the annual report for information about thesteps taken by HTC to meet these principles.

Forward-Looking Statements & Statistical Calculations

HTC CSR Report 2015

Report Scope and Boundary
The organizational boundary, as mentioned in this annual report,
mainly covers the company office buildings and plants in Taiwan:
the headquarters in Taoyuan, two office buildings in Taipei, and theHsinchu and Tainan offices. All HTC business operations in Taiwan arewithin the boundary.
Geographic Coverage of the HTC CSR Report 2015
Boundary

AddressTel

HQ & Factory

No 23, Xinghua Rd, Taoyuan City,
Taoyuan County, Taiwan+886-3-3753252

Taipei Office 1

No 88, Sec 3, Zhongxing Rd, Xindian Dist,New Taipei City, Taiwan

Taipei Office 2

1F, No 6-3, Baoqiang Rd, Xindian Dist,New Taipei City, Taiwan+886-2-89124138

Hsinchu Software
R&D Center

8F, No 1, Taiyuan 1st St, Zhubei City,
Hsinchu County, Taiwan+886-3-3753252

Tainan Software
R&D Center

4F., No.701, Sec. 1, Ximen Rd.,
West Central Dist., Tainan City, Taiwan+886-3-3753252

HQ & Factory

Taipei Office 2

In this report, HTC makes some forward-looking statements about future CSR challenges and developments.
However, because some of these issues are uncertain and subject to variable factors (such as policies, laws,
and international regulations), it should be noted that they have been made after discussions on current HTC
status and are made as forecasts, the purpose being to give our stakeholders a picture of the HTC understanding
and realization of CSR issues. The forecasts are not promises by HTC of guaranteed financial, operational, andbusiness performance.
The figures shown in this report are in the metric system and are statistical and calculated results generated
according to the related international standards and bases of calculation. In the event that any special
calculation methods are implemented for particular indicators, notes are provided below the corresponding
tables or graphics.

Taipei Office 1

Hsinchu Software R&D Center

Feedback
Should you have any questions about this HTC Corporate Social Responsibility Report 2015, please let us know
to help us make continuous progress.

Contact us+886-2-89124138
Tainan Software R&D Center

CSR, HTC Corporation
Contact: Huang Ya-Hui +886 (0)3 375 3252 Ext 31529
E- mail: corporate_responsibility@htc.com
Address: No 23, Xinghua Rd, Taoyuan City, Taoyuan County, Taiwan
CSR URL: www.csr.htc.com

Note: The 2015 boundary did not cover Shanghai due to changes involving the plant.

001

Editorial Principle

HTC 2015 CSR Report 002

Content
Contents

Editorial Principle001

Statement of the management
Assurance Statement
GRI index

005

129

131

007

About HTC
Product 010
The Smartphone Industry 011
Organization Structure 012
Global Operational Locations 013

021

041

087

Actively conducting
innovative R&D 023

The Customer 045

Sustainable Environment 089

HTC DNA Student Workers
Partners 048

Sustainable Design 099

Innovative
R&D

Engaging Diversified 		R&D Talent 026

Re-investment & Affiliated Companies 014
Overview of Financial Performance 014
The Pursuit of Brilliance 015

Partner
Relationships

Sustainable
AgendaForeign Employees 050

Sustainable		
Manufacturing Process 105

Contractor Partners 051

Sustainable Packing 112

Supply Chain Partners 052

Sustainable Product 115

117

017

025

059

Chronicle of 					HTC Product Development in 2015 019

Corporate Governance 029

Attracting 				HTC Foundation 119
and Retaining Talent 061
Other Social Engagement
A Sound Wage 			Activities 124
and Welfare System 065

The Pursuitof Brilliance

Responsibility
Management
Risk Management 033
Management of Corporate
Social Responsibility 036

Employee
Relationsaluing Human Rights and a HighStandard of Professional Ethics 069
Valuing Employee Health 072
Listening to 				Voice of the Employee 081
Complete 			
Education and Training Plan 083

Social Investment
and Contribution

Statement of the management

Thank you for reading the fourth annual HTC CSR report. We continue to follow the information disclosure
requirements as specified in the Global Reporting Initiative (GRI) G4 Guidelines and AA 1000 AssuranceStandard. By this means we are able to let all interested parties as well as the general public know what HTC
has been doing with respect to social responsibility and sustainability.
In 2013, HTC went through a big transition. Although our performance was not as good as expected, we believe
it was a process that will lead to future success. HTC, faced with strong competition and highly stressful
market challenges, failed to reach the projected 2014 financial objectives. We have therefore carried out
comprehensive reform, adjusted our pace and boosted company business operations.
To grasp the opportunities presented by recent changes in information technology and to deal with thechallenges that may come at the same time, we are focusing our efforts on research and development,
technological innovation, and marketing strategy. We are also strengthening the core capability of theenterprise, and believe in “working together to create mutually shared value.” We are cooperating with leading
companies in the industry and are creating more innovative momentum through strategic alliances.

HTC has the ability to be introspective, to makechange, take action, and create more added value forour shareholders, clients, employees, and the generalpublic. Smartphones have become part of daily life
and the recognition of consumer preference deeply
influences the thinking and action of HTC. In the
future, we will continue making new products thatare impressive at first sight. We will continue as aninnovative enterprise, investing in brands, marketingand sales management and this will also make ussocially responsible and sustainable. We hope you
will give us your support, encouragement, and advice.

We have the ability to change. In addition to the improvements in business operations and corporate structure,
we are also taking steps to help suppliers understand and practice social responsibility. We seek to create apositive CSR cycle through integrating our brands, management, employees, associates, supply chain, and CSR
actions such as social participation. The effort has to go with daily operations and management.
We have the ability to innovate and over the years HTC has launched many new products. HTC is dedicated to thedevelopment of outstanding smartphones, and has come up with a most successful product, the HTC One. This
testifies to the leading position HTC holds in the smartphone industry. The HTC One boasts excellent design andbreak-through innovative functions. Pitted against the many competing products of the same class around theworld, the HTC One still wins the first prizes given by the major smartphone rating agencies in the world.
“Here’s to change” is the slogan that continues to raise the popularity of HTC around the world. We areconfident that we will be able to continue to create value for the HTC brand, our clients and our shareholders
in 2014 and that we can look forward to a brighter future.

HTC Corporation
Chairperson

We have the ability to give. The “Power to Give” project incorporates core functions of the industry to build
connections with more people and make great contributions to the medical field through its resources on
the Internet. I believe that the success of HTC comes from the experience of its clients and their constantfeedback. Concerns and suggestions from various interested parties provide more energy to HTC in its
progress toward sustainable development.

005

Statement of the management

HTC 2015 CSR Report 006

About HTC

Name
HTC Corporation (TWSE stock symbol 2498)
Address
No 23, Xinghua Rd, Taoyuan City, Taoyuan
County, Taiwan
EstablishedMay 15, 1997
SectorManufacturer of computers and consumer
electronics (handheld smart computers andwireless communication products)
Main business
Smartphone/HTC phones and accessories

The global leader
in innovative mobile phone design - HTC

Product
Since its establishment, HTC has had very strong R&D capability that has been clearly demonstrated byproducing a stream of first-class products for the international market. HTC has persisted in a consumeroriented approach to continuously provide real cutting-edge smartphones and demonstrate our commitment
to both users and shareholders through our growing global marketing and service network.
We believe that only a deep, sincere, innovative, and unique experience can truly stand out in competition. In
this regard, HTC mobile phone design extends the texture and craftsmanship of products and integrates thedesign, hardware, user interface, software, applications programs, and cloud service flawlessly.

iF Gold Product Design AwardiF Gold Product Design Award
The HTC One received the “iF Gold Product Design Award” in 2014. This phone is not only excellent
inside and out and in line with ultimate aesthetics, but also focuses on the promotion of awarenessof environmental protection. The concept of energy saving and carbon reduction and environmental
protection is actually realized in the product, which has also been recognized and appreciated in many
international award competitions.

The HTC Corporation (HTC) was established in 1997. As a global leader of innovation and design in thesmartphone industry, HTC has, since our incorporation, embraced a passion for innovation and a visionof changing people’s lives with smart handheld devices. We started by providing global customers andconsumers with the best experience by developing a series of world-class customized and innovative wirelesstelecommunications products for industry and distributors in Europe, America, and Asia.
HTC is driven by the “The Pursuit of Brilliance” to move forward with innovative and revolutionary mobile
devices. HTC explores the unknown and is committed to bringing imaginative and innovative design to life andto devise new ways to link people and their dreams to the world.
HTC is a confident industry leader that continues to provide consumer-oriented innovative technology andsuperior designs both inside and out. HTC continues to launch refreshing products and continue to invest in
branding, marketing, and sales management as well as maintaining active communication with our consumers.
HTC is persistent in the sense of caring for colleagues, products, social welfare and environmental protection
programs. The HTC philosophy is based on a spirit of “The Pursuit of Brilliance” to move forward continuously
and to create a better experience for everyone.

HTC main Product: Smartphone
Year

Capacity (thousand)Output (thousand)Output Value (NT$ Million)

2013

38,55020,345

129,184

2014

37,57015,62392,2502015

20,8009,364

49,796

Note: The term “Capacity” refers to the maximum number of a given product the company can produce with normal operation of the existing manufacturing facilities after
consideration of necessary shutdown and off days.

Product Sales: Smartphone and Others (Accessories)
Year

Domestic Sales

Export Sales

Volume (Thousands)

Value (Million)

Volume (Thousands)

Value (Million)

2013

3,024

19,653

97,233

180,555

2014

2,146

18,797

82,181

166,132

2015

70,424

17,62460,183

102,464

Note: The figures for the main products do not include income from maintenance and product development.

009

About HTCHTC 2015 CSR Report010

The Smartphone Industry

Organization Structure

The growth of the world smartphone market has slowed down in recent years to become saturated indeveloped countries. The leading information technology research and advisory company Gartner predicts
that 2016 will only see a 2.5% growth in mobile phone sales, with the number of mobile phones sold reaching 2
billion units. These sales will be attributed to first-time buyers in emerging countries in the Asia-Pacific region,
the Middle East, and Africa. The International Data Corporation (IDC) also forecasts that by 2019, phabletswith 5.5 to 6 inch screens will account for 71% of the total smartphone shipments.

Shareholders’ Meetings

The rise of phablets and detachable tablets shows that they are actually shaping fashion. These devices, PCs,
tablets, ultramobiles and mobile phones, are expected to reach 2.4 billion units shipped worldwide in 2016,
according to Gartner. This is a 1.9% increase over 2015. However, end-user spending on these devices is
expected to decline 0.5% for the first time. This market saturation with personal mobile devices means that
manufacturers cannot avoid taking advantage of every possible opportunity to make the best of their products.
However, the “quantified life” movement in sport has made wearable devices for health management and sleep
tracking very popular.

Board of Directors

Internal Audit Division

Business content
As promised last year, HTC continues to develop smartphones in the low-, mid-, and high-end sectors. The
HTC A9 that was released in October 2015 is an example. It was well-received in Asia, the US, and Europe andwe have expanded our sales channels as a result. In addition to original telecommunications operators andretailers, HTC has put its products on sale at consumer electronic product stores, technology retail stores, andeStores owned by the company. In 2013, HTC opened eStores in China and in 2015, we went on to open eStoresin Taiwan, India, the US and EMEA (Europe, the Middle East and Africa).

Chairwoman & CEO

We will continue challenging the status quo and launching products that wow the user. To do this we need tocarefully evaluate and use our resources and also continue to improve the smartphone production lines andoptimize cost structure. Our investment in digital marketing will be continued, and more attention is to be
paid to our brand and customer loyalty. This will raise the value of HTC and help the company to carry out thecommitments made to consumers and shareholders. We firmly believe that determination and expertise will
help us overcome future challenges and make HTC the Number One smart device brand.

Business performance
HTC consolidated revenue for the past year was NT$121.7 billion, while the consolidated gross margin was
18.0%. In addition to core smartphone business, HTC has launched new products such as virtual reality (VR)wearable devices and Internet of Things (IoT) products, which have received positive responses from themarket. We have been very successful since the beginning of 2016 winning 21 awards at CES 2016 alone.
Of these 21 awards, 14 went to HTC Vive Pre and 7 to the UA HealthBox. Vive will officially launch in April 2016
and 7,000 additional Vive systems will be provided for our developers. The UA HealthBox will been available
for sale in the US from January 22, 2016, both on websites like www.HTC.com and www.UA.com, as well as
in Armour Brand House stores. We also find our way into retail stores in the US in the first quarter of 2016 andwill be distributed to other markets later in 2016.

Smartphone &Connected Devices
Buisness

Virtual Reality
Business

Legal

Operations Center

Finance &Accounting

Human Reourse

Please refer to annual report Page.28

011

About HTCHTC 2015 CSR Report012

Global Operational Locations
Copenhagen, Denmark

Re-investment & Affiliated Companies

Moscow, Russia

EurpoeMilton Keynes, UK

Warsaw, Poland
Utrecht, Netherlands
Paris, FranceFrankfurt, Germany

Slough, UK

ASIA PacificRome, Italy
Madrid, Spain
Seoul, Korea

China Shanghai
MEA
Dubai

SuzhouNew Delhi, India

Mumbai, India

Japan, Tokyo

Headquarter

Taipei, Taiwan
Taoyuan, Taiwan
Tainan, Taiwan
HO Chi Minh, Vietnam
Hong Kong

HTC’s reinvestment policy focuses on the core business of the organization and the businesses that are
beneficial to long-term development. Strategic investment is made through equity investment or acquisition
with adequate financial assessment and analysis of the industry trends, market competition, team experience,
the business model, and risk evaluation. Specific targets are selected that will improve products and service
quality continuously, strengthen the development of key technologies, and control future market demand toenhance core competence of the Company.
HTC made strategic investments in the VR business in 2015. The investments were directed toward specializedrisk funds and companies such as VR media player developer WEVR, medical VR software company Surgical
Theater, game developer Steel Wool Games, VR social platform High Fidelity, and animation studio Larry Eric
& Mo. We expect HTC’s overall development in the VR market to strengthen.

Manila, Philippines
Chennai, india Bangkok, Thailand
Singapore
Kuala Lumpur, Malaysia
SeattleJakarta, Indonesia

USA

Overview of Financial Performance
Houston

Sydney, Australia

HTC’s consolidated revenue in 2015 was NT$121.7 billion and the consolidated gross profit was NT$22 billion.
The consolidated gross margin was 18.0% and the operating margin was -11.7%. The net profit after tax was –NT$15.3 billion and the loss per share (LPS) was NT$18.8.
We expect to reach our projected goals between 2016 and 2017. It is also expected that new products like the
VR devices and smart connected devices will increase company revenue and bring profit.

Latin America
Sau Paulo

HTC is headquartered in Taiwan. Driven by effective branding, HTC
now has operations, sales, and services covering most areas in the world,
including Europe, the Americas and Asia. With the coordination andintegration of our operational HQ, HTC provides customers with a networkof professional services.
HTC stands in the immediate presence of our customers and provides
instant service. Offices have been established in all the major markets of
the world, including the USA, Canada, the UK, Germany, France, Italy,
the Netherlands, Spain, Poland, Denmark, Sweden, Russia, Indonesia,
India, Australia, China, Japan, Hong Kong, Singapore, Thailand, Myanmar,
Vietnam, Malaysia, Cezxh, UAE, and Brazil.

013

About HTC

Unit

2013

2014

2015

Operating Revenue

NT$ Million

203,403

187,911

121,684

Operating Costs & Expenses

NT$ Million

207,373

187,242

135,887

Income Tax

NT$ Million

1,128

500

-48

Employee Wages

NT$ Million

18,332

17,485

15,781Dividends

NT$

0

0

314,636

Social Investment /Donation

NT$ Million

0

7.01

0

Note: The related figures are those listed in the consolidated statement.

HTC 2015 CSR Report014

The Pursuit ofBrilliance ___Future Goal
To increase market share
To strengthen integration of marketing
To deepen the penetration of our brandCurrent Achievement
Creating a global smart phone withexcellent design
The most valuable international
brand from Taiwan

HTC’s
Challenge
How to enhancebrand loyalty

Chronicle of HTC Product Development in 2015
1999

2000

2002

2005

2007

2008

2009

2010

2012

2013

2014

2015

First color
palm size PC

First Microsoft
Pocket PC

First Microsoft
wirelesspocket PC

First 3G
smartphone

First Touchsmartphone

First Google
Android
phone

First WIMAX
smartphone

First 4G Android
smartphone

First smartphonewith Amazing
CameraMost awarded
smartphone that brings
new perspectives onmobile experience

InsideFirst smartphonewith Duo Camera
RE Camera

The smartphonecrafted withobsession.

Our initial goal was to let people experience smart mobile life through high-performance portable devices. HTC,
through non-stop innovation in product research and special product design that offers unique user experience,
was able to lead the transition of the information technology industry from palmtop computers to smartphones.
The core spirit of the “The Pursuit of Brilliance” inspires us to strive for better performance and to create
revolutionary new mobile devices. We explore the unknown and are committed to bringing innovative design
into the lives of users and to think of new ways to link people and their dreams to the world.

An
Unending
Curiosity

At HTC, we go where others haven’t thought to. Breaking down barriers and creating
industry firsts is a large part of our history, which is why HTC has become synonymouswith innovation, engineering breakthroughs, and designing the future of humancommunications as we continue to expand into uncharted product territories. ​An
Unyielding
Resilience

Strong character is at our core. Award-winning vision requires taking risks andchallenging convention. From the very beginning, resilience has been at the heart ofour creative spirit. To this day, we stay committed to our pursuit, believing that thegreatest ideas transcend temporary recognition: they influence behavior, shape lives,and inspire new thinking. ​A Refined
Approach

We hold our ideas and our products to a higher set of standards. That is why wedesign for performance over popularity – and our partners have taken notice. Other
industry leaders come to us because they understand that we create great productswith an eye for design and mind for engineering that’s celebrated by the industry andcustomers alike. ​ARealImpact

It is our belief that technology’s purpose has always been to bring humanity together
to overcome and conquer difficult challenges. That is why we always design our
technology to generate a real impact – to serve a greater, human purpose that every
single human being can benefit from. ​A Greater
PurposeHTC takes a broader approach to serving society and making life better. We believe that
we can make more of a difference looking beyond the obvious, reaching out to people
and enabling them to make a difference, and in improving the way we do things.

017

The Pursuit of Brilliance

A Working Environment Incorporating Brand Spirit
HTC regards the creativity that stems frombrainstorming as one of our most valuable assets. To
promote interpersonal communication, the R&D
headquater in Taipei is configured with many staff
areas that allow our people to interact and talk, thisincludes interlacing sky bridges between the buildingsthat link departments together and interaction rooms
that project from the floors like transparent boxes.
We hope that these interaction-oriented spaces willencourage and promote cross-department synergism
and cooperation, supporting the free extension ofcreativity.
HTC believes sharing is the best kind of interaction.
To this end we will share the lobby on the first floorof the R&D Building with the community, ThisHTC Gallery will help young local artists show theircreativity and work, promoting social and community
interaction. In addition, the HTC Gallery will
cooperate with different institutions and artists toregularly showcase new cultural and artistic works.
It will be open to the community schools, groups,
and the public. Let us all get closer to the arts. All thepeople who work in this building can also appreciate
being in an “art gallery” that will inspire creativity
and help HTC launch better and more amazing
products.

HTC 2015 CSR Report018

Innovative
R&D ___

Future Goal
People-oriented:
Continuous innovation to make themobile phone function meet every
practical need.
Input from wearable devices andInternet of Things (IoT) devices.
Changing the way people interact, andthe technology around the world.

Current Achievement
HTC Vive received “Best In Show”
from MWC.

HTC’s
Challenge
Expediting patent layout
Strengthening advertising ofproduct innovation

Actively conducting innovative R&D
Since our establishment, HTC has invested heavily in cultivating R&D talent and developing technical innovation.
Currently, our in-house R&D employees make up 30% of all HTC’s global employees, the investment of which isabout 11% of the total operating revenue. With this strength of innovation, HTC has special insight into industrial
trends and outstanding capability for meeting consumer demand. This puts HTC always in the lead.
Investment in Innovative R&D
Unit

2013

2014

2015

Fixed R&D Investment

Million (NT)12,543

13,047

13,728

Total Revenue

Million (NT)203,403

187,911

121,684

Percentage

%

6.2%

7%

11%

Note: The related figures are those listed in the consolidated statement.

HTC Vive™
HTC Vive™, the result of joint research and development by HTC and Valve®, is a high-end virtual reality(VR) system that provides the best available experience. We are leveraging Vive’s platform, including a
125 million user virtual community, with close to 9 million simultaneous users, to ensure that HTC Vive
becomes the highest standard of global VR experience.
VR (Visual Reality) is an exciting feature of next generation computing and entertainment. In ordinary VR
systems the position of the user is fixed, and movement and hand gestures are limited. HTC Vive allows
users to browse through the VR world,
move around in a 15-foot square space anduse unique hand-simulation controllers tointeract with objects.

HTC introduced a new flagship model HTC One M9 at the MWC in early 2015. We entered a strategic alliancewith Valve® to jointly research and develop HTC Vive™. This has drastically changed the virtual reality experience,and HTC Vive™ has received positive response and the best exhibit award at the Mobile World Conference. Suchcooperation helps us expand and reach new consumer groups. We will continue this momentum in 2016 andreinforce HTC commitment to the promotion of human communication and interaction.

Note: Valve® provides the world’s leading game platform, Steam, and is thedeveloper of acclaimed games such Portal and Half-Life.

UA HealthBox™

HTC 10
HTC products have fully demonstrated our insistence on productquality, function and excellent user experience. HTC 10 has
realized our commitment to consumers and supporters in generaland the flagship smartphone meets all the expectations of users.
HTC 10 is not only an outstanding model for all top-end
smartphones on the market, but is also an example of HTC
capability in the pursuit of excellence. We will move on with
innovation in design to give our supporters the best user
experience, and more fun as well.

021

Innovative R&D

In 2015, we found a foothold in the industry by producing andmarketing the world’s top-class smartphones. Our leading
technology enabled us to enter the field of smart wearable
devices and VR. A strategic alliance between HTC andrenowned apparel company Under Armour has contributed
to the launch of UA HealthBox, an all-aspect smart connected
fitness system. It provides the user with comprehensive
data on health-related matters and solutions to potential
problems. It serves to set up new standards for products related to the fitness industry. It is expected thatsports enthusiasts around the world will benefit from the device and push their strength to the limits.
UA HealthBox™ is the world’s first connected fitness system, which enables users to monitor, store andunderstand their 24/7 daily activities, workouts, nutrition, and sleep. Following the same philosophy HTC
takes when designing smartphones, UA HealthBox removes the barriers and complexity of technology
with a simple to set up and easy to use system.

HTC 2015 CSR Report 022

Engaging Diversified R&D Talent
We have a talent-based recruitment policy and engage R&D talent available in the local labor markets wherever
we operate. In 2015, a total of 4,542 R&D workers joined HTC globally. In addition to those in Taiwan, we have
many R&D employees coming from, or based in, other countries, such as Europe, America, and Asia. We expectthat the different cultural backgrounds of our diverse employees will fuse and fuel innovative thinking, so as
to support HTC in the development and launch of products that meet consumer needs in different regions andwith different cultural characteristics.

2015
R&D Staff
4,542
O R D EM E P R O

GR

ES

SO

Taiwan Others

2013
R&D Staff
4,087

Taiwan Others

2012
R&D Staff
3,769

公司簡介

023

Innovative R&D

21

HTC 2015 CSR Report 024

Responsibility
Management ___We place great importance on corporate
governance and operational transparency,
and have formulated and implemented
corporate governance guided by the Company
Law, Taiwan’s Securities Exchange Act, andother relevant laws to continue improving
our management performance, and protect
the interests of our investors and otherstakeholders through the comprehensive andsystematic implementation of CSR.

Corporate GovernanceTo achieve this high standard, we formulated the HTC Corporate Governance Framework in 2014, which has
been approved by the Board of Directors and complies with the Corporate Governance Practice Principles for
all the TWSE/GTSM Listed Companies. The objectives being:
1. To appropriately and effectively divide authority and responsibility amongst the Board of Directors,
the Executives, and the shareholders, and to build a management team that is fully responsible to ourshareholders;
2. To build up a system where the Executives and the Board of Directors are enabled to review the company’s
operations and achieve its goals;
3. To cultivate and sustain a corporate culture that advocates accountability and diligence and maintain thehighest ethical standards; and4. To encourage the effective and responsible use of resources.

Board of Directors
There are six directors on the HTC Board (including two independent directors) and two supervisors. The groupof directors and supervisors includes one female director and is primarily responsible for setting and monitoring
management goals and long-term business strategy. They are also responsible for maintaining an internalfinancial and accounting inspection system, assessing operating risks, and proposing strategies for the reductionof such risks.
In early 2015, the Board of Directors decided to appoint Cher Wang as President and Peter Chou wasreassigned as head of the HTC Future Product Center, dedicated to the research and development of smartliving connected devices. The board believes this adjustment of leadership strategy will allow HTC to grasp
future growth opportunities.

Composition of HTC Management (Directors/
Supervisors) by Age & Gender
Breakdown by Age

Male

FemaleTotal<30 (excluding 30)

0

0

0

30 ~ 50000>50 (excluding 50)

5

1

6

Total

5

1

6

027

Responsibility Management

Independent Directors
HTC believes that good corporate governance is critical if a business is to gain the long-term funding that
underlies further investment and growth. We recognize that to achieve good corporate governance, it is necessary
to widen the scope of independent viewpoints in order to win the trust of the public and the shareholders.
During the election of board members (directors and supervisors) in 2007, two independent directors were
elected according to the provisions set forth in the Securities and Exchange Act. This action served to solidify
our corporate governance, strengthen the independence and functions of the directors, and improve the general
performance of the Board of Directors.

Compensation Committee
The Compensation Committee is set up under the HTC Board of Directors. The committee is comprised of an
independent director, and two independent external experts. The Compensation Committee assesses the salary
remuneration policies and system of the Company directors, supervisors, and managers from a professional andobjective viewpoint. The committee also makes suggestions to the Board of Directors for discussing. For HTC
corporate governace organization and members, please refer to Page 26,27 in 2015 Annual report.

Supervisors
HTC has an appropriate number of supervisors. These supervisors regularly review the accounting of thequarterly financial statements with Certified Public Accountants to help ensure their reasonable and proper
reporting. In addition, the supervisors are also responsible for verification of the independence of the Certified
Public Accountants and key stakeholder transactions and to reasonably ensure the internal control system has
been designed and executed effectively.

Integrity management
The “HTC Code of Conduct” establishes a high ethical standard for staff as a guide for the implementation ofcompany operation. The Code includes general principles, customer and supplier relationships, and conflictsof interest, as well as the HTC integrity management policy.
The “HTC Code of Conduct” is published in the annual report and under investor relations on the company
Website. The Board and management adhere to the highest standard of integrity and morality in businesspractice and employee conduct. Any form of bribery, corruption, fraud, and any other kind of improper
behavior is absolutely forbidden.

HTC 2015 CSR Report 028

Complete Disclosure

Strict Mechanisms for Avoiding Conflicts of Interest

HTC is committed to real-time and transparent information disclosure. In addition to disclosing all the
major financial and business information on the TWSE open information website (http://newmops.twse.
com.tw) as regulated, we also hold online investor conferences quarterly, where the predictive figures for
operating revenue and gross and net operating profits for the coming quarter are given so that investors can becontinuously aware of company operations.

HTC has established “Rules for Derivatives Transaction,” “Credit Policy & Operational Procedure,”and “Regulations for the Appointment of Directors/Supervisors in Re-investment” and has revised the“Operational Procedures for Transactions of Specific Companies, Business Conglomerates, and Parties,”“Regulations for Budget Management,” “Regulations for Management of Subsidiaries,” and “Operational
Procedures for Processing Internal Material Information and Preventing Insider Trading” as bases forinternal operations.

In addition to regular information disclosure, HTC also participates in investment forums and investor
conferences held by domestic and international brokers to explain details of the HTC financial data, businessperformance, and other published information to give investors as much information about the HTC financial
and business situation as possible.
Real-time and transparent information disclosure by HTC has been regularly affirmed by the competentauthorities with an A+ rating. This was received for the first time in the 6th information disclosure assessmentof the Securities and Futures Institute and the A+ rating has been awarded for three consecutive terms,
including A++ ratings in the 9th, 10th and 11th terms.

After the establishment and subsequent revision of the “Operational Procedures for Processing Internal
Material Information and Preventing Insider Trading,” the company makes internal announcements to all
employees through e-mail, and also posts related information to our Intranet website. Furthermore, the latest
version of the rules is always accessible for immediate reference on the corporate website and on the Intranet.

HTC took part in the 1st “Corporate Governance Evaluation” held by the Securities and Futures Institute in2014 and was ranked amongst the top 20% of companies with excellent performance.

In addition, as clearly set forth in the HTC Employee Manual, involvement in fraud, bribery, embezzlement,
and violation of business competition limitation may lead to a punitive dismissal. Any reports about the above
offenses may be sent to the heads of the related departments, the Human Resources Division, or the auditing
unit. The Human Resources Division is responsible for disciplinary action. A dedicated reporting channel(anti-corruption@htc.com) has also been established for employees to expose any improper behavior thatcomes to their attention.

We disclose our practice of corporate governance and legal compliance on the company website. For more
information about HTC governance policy and other related guidelines, please visit

Internal Audit System

http://tw-investors.htc.com
Diversified Channels for Transparent Information Disclosure
Spokesperson & Deputy
Spokesperson

A spokesperson (and a deputy spokesperson) has been assigned forcommunication with the media, investors, and analysts according to “Corporate
Governance Best-Practice Principles for TWSE/GTSM Listed Companies.”

Press Release, Press
Conference & MediaInterview

The company’s latest developments are also communicated to our investors andthe public through press releases, press conferences, and media interviews.

Website Platform

HTC has set up our internal audit unit as subordinate to the Board of Directors. The internal unit is responsible
for assisting the Board of Directors and management in checking any defects in internal control and inassessment of operational efficiency and performance, as well as the accuracy of the financial statements andcompliance with the related laws. The unit also addresses areas that need improvement in a timely manner toensure internal control is continuously and effectively implemented. The audit results are used as a basis forthe review and amendment of the internal control system to advance sound management in HTC.

1. HTC has established an Investor Relations Website (in both Chinese and English)
through which the investors can access and download the company’s financial
statements, annual reports, other financial news, information about investor
conferences, and correspondence with shareholders. In the “Investor Service”
section, contact information and electronic forms are provided for investors tomake contact with the Investor Relations Division by phone or by email.
2. The Investor Relations Website is continuously maintained and updated with thelatest HTC Company development information.
HTC will continue maintaining and updating relevant and material company
information, so that investors can get the latest news.

Investor Conference &International/Domestic
Investor Forum029

HTC regularly holds investor conferences and from time to time participates ininternational and domestic forums held by foreign brokers. Details of these areprovided to explain company operation, financial profile, strategic development, andbusiness policies to the investors.

Responsibility Management

HTC 2015 CSR Report 030

Risk Management
Management of Financial Risks
In 2015, HTC foreign exports accounted for around 84.20% of our total business revenues, with all products
sold overseas and raw materials bought from abroad quoted in US dollars. Most of our foreign currency
holdings could be offset by recurrent purchase loans to achieve hedging. The rest of the foreign currency
holdings are converted to NT dollars according to actual demand. In the future, we intend to enhance theautomatic hedging of foreign currency debit/credit offsets, by using tools such as derivatives under theapplicable risk-control rules.

Management of Operating Risk
HTC has never made high-risk, high-leverage investment, yet, as a part of our long-term business strategy, weare still positively evaluating the risks and benefits of introducing new technology. To remain responsive to thepotential risks caused by increased costs as a result rapid industrial development, we control operating costrisks by strengthening the functions of our products, reducing overall costs, and strictly controlling expenses.

Management of Climate Change Risk
As an answer to requests from customers, HTC joined the Carbon Disclosure Project (CDP) in 2008. We
voluntarily disclose information about our climate risks, future development opportunities, emissions, andstrategic management mechanisms.

Cause

Operational Risk from
Climate Change

HTC manages corporate risk with a focus on sustaining value for the shareholders and stakeholders. We
have established an appropriate control mechanism after careful consideration of all the various operational
uncertainties that ensures a rapid response to uncertainty, as well as to any attendant risks and opportunities.
Such careful risk management enhances our ability to create value.

Legislative Risk from
Climate Change

031

Responsibility Management

Unstable or limited power supply.
Power supply may become unstableor limited due to peak demand forelectricity in the summer
Regional natural disaster
The increasingly extreme climate
can bring about floods, supertyphoons, super downpours, oreven drought
Laws and standards for energy
efficient products (e.g. California
Energy Law, Energy Star, ErP, etc.)
The Taiwan Draft Greenhouse Gas
Reduction Act
Customer guidelines
The customer may ask for our
regular disclosure of carbon
emission

Resulting Risk or Impact
Shut down in production lines
Shortened life or immediate
damage to instruments anddevices due to unstable room
temperatures
Grounded flights impacting
transportation
Increased shipping time andcosts

Opportunity
Adjusting and optimizing production
processes in advance, to improve
efficiency and reduce energy
consumption

Planning how to work with our
suppliers to improve the efficiency of
packing and transportation

Introduction of a green supply chain
Increased costs for materials
and parts

Since power consumption
is still the main source ofgreenhouse gas in the ICT
industry, the total emission ofgreenhouse gas must increase
with the growth of businessand production

Looking for green innovation
business (e.g. reduced packing andrecycled packing materials)

Providing KPIs (Key Performance
Indicators) for evaluating design
simplification and standardization,and manufacturing and testing
efficiency

HTC 2015 CSR Report 032

Management ofCorporate Social Responsibility
Protection of IP Rights
HTC regards R&D and innovation as an essential force needed for the company to remain sustainable andcompetitive. In particular, the protection of intellectual property rights is a key to maintaining our brandvalue. The protection we put on our intellectual property rights covers four areas: patents, trademarks,
copyright, and trade secrets. Of these, patent protection is particularly valued and is realized at two levels:

To ensure effective discussion and treatment of CSR issues, HTC has run a CSR Committee since 2012, and has
also set up a dedicated team for formulating CSR policies, drawing up related action plans, performing crossdepartment coordination, and handling communication with, and feedback from, the external stakeholders
and our key suppliers.

Structure of the HTC CSR Committee

Company
Level

Positive filing of patent applications to protect the results of our various product R&D andtechnical innovation
Holding regular training courses for R&D staff about IP management
Encouraging our employees to invent and create
Setting up a dedicated unit under the Legal Affairs Division for IP-related matters, including
patent protection and dispute resolution

Industry
Level

Positively looking for the transfer and licensing of patents that are favorable to our technicaldevelopment in order to expand our existing technical field
Engaging in technical cooperation with leading domestic and foreign research institutions,providing top talents with opportunity to receive practical training in HTC, thereby fueling our
R&D with innovative thinking.

HTC CSR
Committee

HTC has an active attitude with respect to the enforcement of our patent rights and deals with any
infringement immediately to protect the IP-related rights and interests of the company. For example, toprotect our reputation HTC works closely with the customs department and the police in many different
countries to investigate and eliminate imitations and unauthorized products being sold on the market.
We also actively seek trademark protection all over the world and have registered all the HTC marks, in morethan one hundred countries. This includes all HTC brands, product names (e.g. HTC One), and the namesof various parts and technologies (HTC Sense, HTC Zoe, etc.). When imitations or unauthorized use of ourtrademarks is found, HTC takes legal action together with the local law-enforcement agencies to protect ourrights and interests.
In addition, HTC also has regulations in position to protect the commercially valuable information that is notcovered by trademark or patent protection, such as copyright of program code, product photos and images, andother trade secrets and information about products to be launched. We use strict employment contracts andnon-disclosure agreements to limit the disclosure of confidential information, and protect our R&D resultsfrom disclosure.
The company has a positive attitude and employs mature strategies to protect all kinds of intellectual property
rights that set a firm foundation on which first class HTC brand value can be developed all around the world.

033

Responsibility Management

Employee
Care

MFG

Product

Sourcing

Environment

We use clear organization and work breakdown, through interdepartmental meetings, to integrate CSR work
into the management of related departments, such as legal affairs, compliance, environment, procurement,
human resources, and marketing, to activate overall CSR and innovation. This ensures that CSR policies andmeasures are an integral part of daily operations of the company.

HTC 2015 CSR Report 034

Mechanism for Committee Operation

CSR management procedures

The HTC “CSR Committee” convenes annually with each related unit and prepares a report of their CSR
practices. The CSR-related work and actions will be expanded to the supply chain in 2013 as planned. In
addition to a CSR compliance audit, CSR related education and training would be provided.

This HTC CSR report is based on the GRI G4 guidelines with a focus on disclosing G4 considerations, mainly
concerning disclosure of material issues related to action, performance and achievement.

The HTC CSR Committee holds annual discussions about the CSR objectives established by each department
and the major CSR issues of the year. The head of each department is also authorized to take relevant action
and to trace and control the outcome and report the results to the Board of Directors.
In addition, the CSR Department holds periodic meetings with each responsible department where the annual
CSR performance results are summarized. A CSR report is then prepared in accordance with the GRI Outlines
and is signed by the CSR Committee Chairman before publication.

The HTC “Corporate Social Responsibility (CSR) Policy”
HTC is committed to observing all the International and Regional laws in the countries where it
operates and to do business with honesty and integrity. We will continue to provide innovativeand quality products, protect the environment, care for the health, safety and human rights of ouremployees, and positively maintain our stakeholders’ rights and interests.
This CSR policy helps HTC maintain social responsibility and realize the vision of sustainable
development. All our related business partners advocate and share this policy with us and in this way
we all protect and enhance the rights and interests of our internal and external stakeholders.

Compliance with EICC and related international initiatives formulates and practices labor
regulations, also human rights protection, at all operating locations.
Promotion Energy Efficiency, Carbon-Reduction Practices and Various Environmental
Protection.
Sustainable Innovation and Development
Sustainable Supply Chain Management
Be a Responsible Corporate Citizen, with the Highest Ethical Standards

035

Responsibility Management

The HTC CSR Committee members met to confirm the impact of the material issues on the internal andexternal organization. In other words, the positive, negative, or potential impact on the economy, environmentand society, taken as a whole in accordance with internal considerations, industrial conditions, industrial
chain practice, and stakeholders’ suggestions, as well as to confirm the impact of each issue. We will graduallyinvite and encourage internal and external entities to join the CSR disclosure process in the future.

Source of internal issues

Source of external issues

Issue consideration basis
and source

Issue consideration basis and source

HTC Code of Conduct
HTC mid-tern and long-terndevelopment strategy
Departmental		development policy

GRI G4
ISO 26000 Guidelines
Requirements of government regulatory agencies
HTC Customer specifications
Electronic Industry Citizenship Coalition(EICC)The UN Global Covenant
External opinions received by each department

Basic onthe degree of public concern over the issues
and their importance to the operations

The following procedures were used to determine and confirm HTC 2015 key CSR issues:
1. Consult the representative of each department.
2. Summarize and discuss the feedback from of each stakeholder.
3. List future refinement and improvement activity/direction inaccordance with PDCA management cycles.

HTC 2015 CSR Report 036

G4 Material Issues and Boundary

2014 HTC Materiality Analysis
High

Level of Stakeholder Concern on the Issues

Brand management
Economic performanceMarketing and broadcasting
Conflict minerals
Suppliers’ CSR management
and assesment (Human right,
Environmental and Social)
Customer health and safety
Diversity and equal
opportunity
Working conditions
complaint mechanisms
Regulatory compliance
EffluxEnvironmental complaints mechanism
Equal Remuneration
Grievance Mechanisms for Impacts on Society
Diversity and equal opportunity
Responsible investments
Freedom of association and collective
negotiation
Indirect economic impact
Procurement practiceAnti-discrimination

Sewage and waste
EnergyIndirect economic impact
Water resources
Anti-competitive behavior

Product and service labelingImpact of products and serviceson the environment
Customer privacy
Market image

The overall environmental situation

Level of Impact of Issues on HTC’s Operation

Low

Employer-employee relations
Labor relations
Occupational health and safety
Anti-corruption
Character education

RegulatorycomplianceHigh

In addition, to ensure that the policies and decisions of the “CSR Committee” can be put into practice, wehave divided CSR activities into four areas, “green products, environmental protection, occupational safety &health, and social responsibility,” and have set up a dedicated management system for each. These have beenverified as aligned with the applicable international regulations and standards, and help integrate company
policy for sustainability and social responsibility into our daily operations.
CSR-Related Management Systems

The Green ProductsManagement System

Since the end of 2007, HTC’s Taoyuan facility and the Taipei building have regularly
passed all audits conducted by the international certification agencies, and obtained andmaintained certificates of IECQ QC080000 Hazardous Substance Process Management.

Green ProductVerification

In 2013, the HTC One became the world’s first smartphone inspected in accordancewith international standards ISO/TS 14067:2013, PAS 2050:2011, ISO 14040:2006, as
well as the carbon footprint and life cycle assessment ISO 14044:2006.

The Environment
Management System

We strive to minimize the impact of our operation on the environment. In addition toestablishing the ISO 14001 environment management system, we have made sure that
all our manufacturing sites around the world always pass the audits conducted byinternational certification agencies, and obtain and maintain ISO 14001 certification.
During 2010 to 2014, there were no penalties for any breach of regulations or laws.

The Occupational Safety& Health Management
SystemThe Energy
Management System

037

Responsibility Management

To reduce the risks of workplace injury and reduce accidents, an occupational safety& health management system has been established according to OHSAS 18001, andwe have made sure that all our manufacturing sites around the world always pass theaudits conducted by the international certification agencies, and maintain OHSAS
18001 certification.
ISO50001 examines the source and amount of greenhouse gas emission according
to ISO14064-1 Standards. The energy management system enables planned energy
management to be realized, thereby supporting sustainable operation.

EconomyScope

Within the organization

Economic performanceMarket image
Indirect economic impact
Procurement practiceMaterial
Material
Material
Material

HQ

Outside the organization

R&D Center

Local community

Material
Qualitative explanation

Environment
Scope

Within the organization

EnergyWater resources
Emission (Greenhouse gas)
Sewage and waste

Material
Material
Material
Material

Impact of products and services on theenvironment

Material

Regulatory complianceTransportation
The overall environmental situation
Supplier Environmental impact assessment
Environmental complaints mechanism

Material
Material
Material
Material
Material

Labor conditions
Scope

Within the organization
HQ

R&D Center

Employer-employee relations
Occupational Health and safety
Employee training
Diversity and equal opportunity
Supplier’s labor assessment
Working conditions complaint mechanisms

Material
Material
Material
Material
Material
Material

Material
Material
Material
Material

Human rights
Scope

Within the organization
HQ

R&D Center

HQ

Suppliers Corporate customers Consumers

R&D Center

Outside the organization
Local community

Suppliers Corporate customers Consumers

Material
Material al
Material

Material

Material

Material
Material
Material
Material

Outside the organization
Local community

Suppliers Corporate customers Consumers

Material
Material

Material

Outside the organization
Local community

Suppliers Corporate customers Consumers

Anti-discrimination

Material

Material

Material

Freedom of association and collective
negotiation

Material

Material

Material

No childl labor
Forced labor
Human rights assessment
Suppliers human rights assessment
Human rughts complaints mechanism

Material
Material
Material
Material
Material

Material
Material
Material
Material
Material

Material
Material

Community
Scope

Within the organization
HQ

R&D Center

Anti-corruption
Regulatory compliance

Material
Material

Material
Material

Product liability
Scope

Within the organization
HQ

R&D Center

Customer health and safety
Product and service labelingMarketing and broadcasting
Customer privacy
Regulartory compliance

Material
Material
Material
Material
Material

Material

Material

Material

Material
Material

OthersScopeWithin the organization

Conflict minerals
Brand management
Character education

Material
Material
Material

HQ

Material

Material

R&D Center

Material
Material
Material

Outside the organization
Local community

Suppliers Corporate customers Consumers

Material
Material

Outside the organization
Local community

Suppliers Corporate customers Consumers

Material

Outside the organization
Local community

Suppliers Corporate customers Consumers

Material
Material

Material
Material
Material

Material

Material

HTC 2015 CSR Report 038

Partner
Relationships ___HTC places great value on our local andforeign employees, customers, students andinterns, and supply chain partners as well as
communication and interaction with all otherstakeholders. We have achieved very clear
understanding of other ideas and views throughparticipation, cooperation, and interaction with
our CSR partners and have seen that significant
social impact results from shared learning.
In addition to the various hardware andsoftware that provides convenience for ourpartners, HTC has also established a numberof communications channels to maintain
good interaction, and the relevant units are
responsible for collecting suggestions fromstakeholders according to their relevanceand potential impact on HTC operations.
The suggestions and responses are regularly
disclosed in the CSR reports and incorporated
in our future plans for improvement.

Value Stakeholder Engagement

Investors
General Shareholders
Corporate Shareholders
Rating Agencies

Concerned Issues
Communication Channels
and Frequency
041

Corporate
Customers

1. Board of Directors
meeting 4/year
2. Shareholder conference
1/year
3. Annual report 1/year
4. Investor Conference 		
1/season
5. Monthly revenue
statement 1/month
6.Visiting investors
Standing
7. Investor RelationshipWebsite Standing
8.Spokesperson Standing

1. Business review with key
customers (QBR meeting)
Quarterly
2 Reply to customer
inquiries From time totime
3. Customer audit andreplies to customers
questionnaires 		As required by thecustomer
4. Meeting customer
requirements about
environmental and social
responsibilities 		As required by thecustomer

Suppliers

Contractors

General Employees

Raw material suppliers

Construction Contractors
Cleaning/ Maintenance
Service Providers

Vocational Students &Trainees

Information andCommunication

Product quality
Service quality
Price competitivenessOn-time delivery
Green products
Carbon footprint/
carbon disclosure
Restricted substancemanagement
Corporate social
responsibility

Employees
Contingent Workforce

Major Telecommunication
Operator

Information disclosure(finance, business)
Compliance with laws
and regulations
Operation Status
Strengthening
corporate governance
Strengthen risk
management
Key shareholder shareholding rates

Partner Relationships

GeneralConsumers

Waste Disposal Vendors

Foreign Labor

Pre-sales consulting
After-service
Product quality
Service quality

Learning & growth
Working environment/labor conditions
Wage/welfare
Health & safety
Career development
Work-life balance		Raw material quality

Local Civic Organizations
Local Governmental
Agencies

Construction safety& health

Environmental impact(air pollution, sewage
discharge, etc.)
Compliance with laws
and regulations
Shaping the corporate
image
Economic contribution
Social concerns
Public welfare
Cultivation of talent

1. Induction training
Weekly2. Patrol inspection in
facility Daily

1. Positive employee
engagement in public
interest activities
Irregularly
2. HTC cooperation
with governmental
agencies and nonprofit organizations ineco, environmental andother public welfare
activities Monthly
3. Clean the beach
Quarterly		Price competitiveness		Continuously stable supply
		Supply chain management
		Compliance with various

regulations

		Technical capability

transportation providers to
conduct effective packing (e.g.
packing reduction and reuse)
raw material selection
Working environment & health
Machine/equipment safety
Carbon management training
and contests

1. Department quarterly
meeting Quarterly
2. One-on-one interview
with supervisors
Irregularly
3. Annual performanceappraisal/ interview
Annually
4. New employee
seminar Weekly
5. Employee assistance
hotline and mailbox,
Health Center,
Employee Aid Scheme
From time to time
6 Labor-management
meeting Bimonthly

Local Community
Associations

Local Media

		Cooperation with logistics/

1. Local service hotlines in 75 countries
to provide customers with real-timecommunication and assistance Daily
ongoing
2. Websites in different languages forcustomers to give feedback and toaccess information in a real-timemanner (50 established, continuously
increasing) Daily ongoing
3. Dedicated email boxes for different
functions (PR, Service, Copyright,
Security, etc.) to provide convenient
customer contact with HTC Daily
ongoing
4. Postal service survey for investigating
customer satisfaction Daily ongoing
5. Contacting customers who givenegative feedback in the satisfaction
surveys to address their concerns Daily
ongoing

Local
Communities

1. Supplier communication
activity Irregularly
2. Guidance and audit for
suppliers Annually
3. Cooperation project with
suppliers for addressing
CSR and greenhouse gas
issues Two projects in 2013
(supplier CSR audit andcarbon footprint check)

HTC 2015 CSR Report 042

The Customer
The HTC privacy policy is also incorporated in the orientation training of new employees. Every employee istrained in all aspects of maintaining confidentiality when working with customers. Under our solid control
mechanism, there was no damage to the rights or interests of any customer caused by a breach of privacy orfrom lost data in 2015.

Corporate Customer Satisfaction Management
HTC has established regulations governing the management of customer satisfaction to meet the specific needsof all our customers and to respond to customer expectations and requests. A Quarterly Business Review ismade to determine customer satisfaction. Each Business Unit proposes corrective action for any nonconforming
project and follows up any action taken to ensure that the customer has been perfectly satisfied.
The HTC customer satisfaction management index, in addition to product quality, delivery, and aftersales service, includes evaluation of corporate social responsibility. The issues of employee human rights,
environmental management, and energy management targeted by the global supply chain activated by
EICC, are especially important. These have also become matters of concern and requests by our corporate
customers. In this respect, we have designated a department to regularly aggregate HTC CSR information forcommunication and response.

Participation in CSR program offered by client

orporate Customers“Customer First” is an HTC core philosophical value and also the foundation of the HTC business. While
HTC makes mobile phones bearing our own brand, we also work with the world’s leading ICT dealers in thedevelopment of customized handheld devices for them, or in the launching of ‘co-brand’ handheld devices.
We have established close relationships with many major carriers, including those Telecom companies that
dominate the US and European markets as well as with some that are growing fast in the Asian markets. Thisway we can present our products to large numbers of customers all around the world.
We respect and strictly observe our agreements with corporate customers. In addition to maintaining absoluteconfidentiality and integrity throughout our facilities, we also maintain strict external control by means ofcarefully worded contracts and non-disclosure agreements with all our key suppliers. We ensure that bothinternal and external staff and vendors match the highest ethical business standards.

Protection of Customer Confidentiality
HTC makes a promise of “Strict observation of contractual obligations and confidentiality commitment” toall customers. All information we provide to our customers is subject to clear policies and a system of strict
internal control. In addition to technical data and hardware and software, information related to patents andother intellectual property rights of customers may be incorporated into our controlling system. We complete
confidentiality agreements with all customers and suppliers in advance to maintain the absolute security of all
the confidential information belonging to our corporate customers.

043

Partner Relationships

In 2015, we took part in the CSR program that Deutschen Telekom AG provided to suppliers. The program,
aimed at enhancing supplier social responsibility, includes ten principles: corporate governance, anticorruption, supply chain management, environmental protection, production operation, safety and sanitation,
salary and benefits, employee satisfaction and turnover rate, improvement of the working environment, andemployee relations. HTC worked out 28 solutions. After persistent effort over the past year, HTC has received
a Gold Award from Deutschen Telekom AG for its performance in the program.

General Consumers
HTC has set up local service lines in 75 different countries that provide direct communication and assistance,around the clock, seven days a week. Currently, our help desk can serve customers in 42 different languages,
allowing people from far corners of the world to contact HTC and speak in a familiar tongue. We have several
other channels through which customers may contact HTC: email, SMS, and social network sites. We havealso set up websites in 50 different languages that allow our customers to easily obtain information and give
feedback without delay.
In order to get information about consumer
satisfaction, each time a customer uses ourservices, they are invited to participate in a service
satisfaction survey. This gives the customer achance to give positive or negative feedback andaddresses any concerns they might have. This one of
the ways we are able to achieve our goal of customer
satisfaction.

Free courier service
Please call 0800-088-858 or(02) 8761-5959 (press 1-2)
HTC Repair
and Maintenance
Service Center

HTC 2015 CSR Report 044

HTC DNA Student Workers Partners
As part of our efforts to fulfill social responsibility, HTC promotes
industry-university cooperation and programs like “HTC DNA
Summer Intern” to allow students early access to a real job andan excellent working environment. Students learn practical job
skills from such internship and also have the opportunity to be
recruited as new talent by HTC.

Full on-the-job training

The HTC intern salary is better than normal for the industry.
The monthly pay for a college student is NT$25,000, and for a
graduate student NT$30,000. Students are also entitled to thestandard employee benefit package, NT$55 for lunch, NT$75 fordinner, and can use all company equipment, including the fivestar gym, exercise classes, basketball and badminton courts, etc.

A four-day induction which included full training in a specific area helps the interns to quickly adapt to theworking environment and also gives them an understanding of company culture. The inter- departmental
projects for the students, outside their assigned units, sometimes even included cross-country cooperation.
An example of such a project was “So Real” in 2015 which involved cooperation with the company design
department. The students engaged in a series of workshops and courses where they were able to exercise
creative thought. They worked in competing teams to make a special report on the new HTC VR device fromthe angle of user analysis, market strategy and market research.

The 2015 HTC DNA Summer Intern Program offered two-months of on-the-job training. The students not
only worked in assigned units but also joined up with fellow interns in other units for cross-departmental
cooperation. At the end of their two months training period, the interns are required to present a report oftheir job achievements to their unit director.

Summary of HTC industry-university cooperation project

Recruiting
channels

TargetHuman resources page on the HTC official website, campus recruitment,
LinkedIn, and others
HTC Global Careers website: http://careers.htc.com/
HTC Career Fan Page:https://www.facebook.com/HTCCareers/

Alternative service conscript, Summer intern, One-year intern

Results

170 one-year interns were recruited in 2015.
HTC Career Fan Page was activated to let would-be HTC talent understandthe company working environment and culture through information shared on
the page.

Resources
investedby HTC

About NT$200,000 for the summer intern program (excluding salary, traffic
expenses, and accommodation fees).
About NT$200,000 for one-year internship program (including expenses for
Christmas activities, the graduation ceremony and gifts).

The annual HTC DNA Summer Intern Program entered its fourth year in 2015 and more than 3,500 applications
were received from home and abroad. HTC chose 80 under-graduate and post-graduate students from 36
universities in Taiwan and other parts of the world. Twenty-eight (36%) were International students from 18
different countries.

045

Partner Relationships

HTC 2015 CSR Report 046

Foreign Employees

The top priority for HTC when dealing with foreign employees is to raise the awareness of antidiscrimination regulations, to eliminate repulsion harassment and the lack of proper discipline in theworkplace. The provision of an open communications channel and an appeals system is also necessary
to ease the disquiet many foreign employees feel when working and living abroad in Taiwan and to allow
them to concentrate on their work.
HTC provides complete orientation training for new foreign employees, including an introduction to
wages and welfare, explanations about the manufacturing process, environmental safety and health,work rules, dormitory regulations and daily life management, etc. We also value and listen to the voiceof our employees. In addition to making detailed records of their feedback about their life and work,
we communicate our concepts about sharing love and respect also teach them to review themselves
honestly, love themselves, and respect others.

047

Partner Relationships

The health examination program for foreign workers is managed under a dedicated system and is
identical to that for Taiwanese employees without any different treatment. We also manage follow up
after the health examination, to ensure the state of health of the foreign employees.
In addition, we engage “interpreters,” “managers,” and “consultants” proficient in the different languages
to give our foreign employees assistance in their daily lives, language, culture, and mental needs. The HTC
dormitories have free Internet access, 24-hour air conditioning; the living quarters have well equipped
gyms, reading rooms, and prayer rooms. Regular activities are held exclusively for foreign employees,
such as NYR parties, annual travel arrangements are made and regular labor-relations meetings are held
to allow feedback about work and living conditions to ensure their physical and mental well being.
Regarding management: In addition to professional skills, we also provide education in character
development and communication skills, to build and strengthen good labor-management
communications. For those foreign employees who have expressed an intention to quit, in addition torespecting their will, we also arrange interviews to assist in their future career planning and provide themwith appropriate assistance.

HTC 2015 CSR Report 048

Contractor Partners

Supply Chain Partners

HTC focuses on industrial technology and works in collaboration with different professional contractors tojointly develop the industry. In addition to learning from our long-term trusted contractors we value eachother’s job safety. We have also established comprehensive safety and protection measures of our own andmake them available to these trusted partners to our respective advantage and to create prosperity together.
In this regard, HTC formulates a comprehensive health and safety management plan each year depending on
the safety and health management of our contractors, to prevent occupational accidents before they happen.
We take the following key action to ensure the safety and health of our contractor partners: we abide by all the
relevant safety and health regulations, identify hazards to reduce risk, regulate the labeling, communications
about dangerous and harmful chemicals and promote contract parters management. All such relevant
information is also published and we engage with our contractors to lower safety and health risk by making sure
all our personnel take part. In addition, HTC has passed the OHSAS18001: 2007 version of the Occupational
Health and Safety Assessment Series. Newly recruited construction workers receive safety and health education
before they start on their jobs. They are given all necessary information about the working environment and therelevant safety regulations. They all know the location of fire safety equipment and how to use it.
The HTC Family was created in cooperation with the Taoyuan City Government in 2014. The City organized thesafety and health seminars and field trips and also shared actual case studies with the contactors. This caused
small and medium sized enterprises to work for occupational safety just like a mother hen leads her chicks.

Construction management measures to be conducted by Contractors
The provision of site safety induction sessions at construction sites;
Verifying the information about construction workers and vendors;
Monitoring high-risk operations;
Maintaining facility access control;
Ensuring construction site safety;
Conducting safety and health management for new facility construction; andObtaining the required insurance for contractor employees.

Safety and health audit to be conducted by Contractors
Incorporating requirements for safety & health management in the written agreements withall contractors according to the applicable regulations to clearly define contractor obligation
and responsibility, and evaluate all the risks in the working environment including that fromdangerous machines, so as to have proactive control and eliminate potential hazards.
Formulating a system for on-site patrols and inspections according to the applicable regulations
and contractual requirements about labor safety & health. The performance of regular patrols,
inspections and audits, working precaution, records of the safety & health education of theworkers, and all safety requirements to be met before, during and after the use of machines,
tools and equipment.

049

Partner Relationships

Suppliers are a vital factor for the continued success of HTC, we were founded in Taiwan and are a Taiwanesecompany whose operations and procurement drives development of the related sectors. Except for certain key
parts and components, it is general procurement policy to use raw materials and equipment that originates in
Taiwan to the greatest extent possible. We not only require our suppliers to provide quality services and products,
but also measure our supply chain against stringent ethical and environmental standards.

Supplier Code

Unit

AmountPercentage of Total Purchase Amount (%)

Interests

A

Million (NT)14,029

18%

None

B

Million (NT)13,831

18%

None

C

Million (NT)10,97014%

None

OthersMillion (NT)40,03351%

Total Purchase AmountMillion (NT)78,863

100%

HTC 2015 CSR Report 050

HTC is a member of the Electronic Industry Citizenship Coalition (EICC) and has formulated an “HTC
Supplier Code of Conduct” according to the Electronics Industry Code of Conduct, with the aim of working
with our supply chain partners to protect the environment, uphold the human rights of our workers, theirsafety and health, and extend this social responsibility to the supply chain system.

The green supply chain management system

Health & Safety

EhticsManagement
Labor
Systems

Enviroment

Undertaking responsibility as an EICC member
HTC established the “HTC Supplier Code of Conduct” all our suppliers to observe. We conduct annual SR
compliance audits on our suppliers according to the “HTC Supplier Code of Conduct,” to ensure our suppliers
all conform to their social responsibilities. The audit covers labor conditions, environmental issues, healthand safety, honest and ethical practices and the related management systems. In addition to the on-site
audit, our auditing team also offers coaching and consultation, and provides the suppliers with all the latest
information and knowledge during the audit process, to give them every opportunity for growth.

HTC Supplier Code of Conduct

HTC has had a green supply chain management
platform since 2006 to help R&D engineers selectgreen materials from the product database thatcomply with both International regulations andcustomer requirements. Green materials are usedfrom the start of design to significantly enhance
the reliability and related validation process andschedule of green products.

The HTC Supplier Code of Conduct details the responsibilities and regulations that have to be followedby all suppliers doing business with HTC. In addition, HTC also conducts regular assessment of
implementation of the Code as the basis for our further selection of business partners.
The provisions about labor issues, health and safety, and ethics were framed with reference to therelated documents issued by the EICC and United Nations Universal Declaration of Human Rights. For
more information about the “HTC Supplier Code of Conduct,” please see: http://www.htc.com/tw/about/corporate-responsibility/

051

Partner Relationships

HTC 2015 CSR Report 052

The HTC Supplier
CSR compliance
audit includes
five stages

Issue notice

Require the suppliers to sign the“Corporate Social Responsibility (CSR)
Survey and Declaration.”Set the audit schedule

Perform on-site
follow up audit
to close out thenonconformities
raised by initial
audit

Perform theon-site audit

Releaseaudit reports
and corrective
actions request

Conduct the supplieron-site audit

Audited supplier reply thecorrective actions

Set
the audit
schedule

TargetCSR Assessment & Audit

Responsible Procurement of Minerals

We established the CSR unit in 2010 and then initiated investigation of those suppliers who had implemented
CSR. Twenty major parts suppliers were chosen in June 2011 after CSR compliance audits. This was not only
to verify their understanding of the HTC Supplier Code of Conduct, but also to provide them with consultationand counseling. The HTC Supplier CSR compliance audit includes five stages

HTC has responded to the global boycott of conflict minerals, supports the
Conflict-Free Smelter Program2, has promised not to use conflict minerals,
and refuses to accept primary ore material from the Congo and theneighboring Central African countries in conflict.

Audited

2012

2013

2014

2015

30

30

20

20

Labor

Health and
SafetyEnvironment

Ethic

ESH
management

L&E
management

78

106

43

19

34

149

The intended use of conflict minerals
Summary

Au

Sn

W

Ta

Point of use

Contactin the circuit boards

Solderingin the circuit boards

Tungsten Alloy
used in Vibrator

Tantalum-Capacitor

Intended use

As circuit board
contacts to ensure
proper connection

Solder to mount circuitboard electronic
components

Tungsten alloy usedin the phone vibration
motor

An element used intantalum capacitors

Commitment to supervising and 						managing the mining of Tin on Bangka Island, Indonesia

HTC also observes the situation and the degree of compliance of suppliers, and their plans for education andtraining along the supply chain to promote CSR, to help them enhance CSR implementation. There were
61 carbon footprint inventory data of priority parts and 43 suppliers of HTC trained in the supplier carbon
footprint inventory education and training courses up to the year of 2015 to ensure the integrity and accuracyof our data analysis.

According to investigative reports released by the environmental protection organization Friends of the Earth,the mining of Tin on Bangka Island is in gross violation of human rights and the impact on the environmenthas been devastating. We respond most positively to this global environmental protection campaign. We havemade inquiries into our first-stage supply chain without directly using material provided.

We have studied the issue of Conflict Minerals and this is included in the supplier CSR compliance audit andclearly defined in the “Procedures for Supplier Social Responsibility.” In addition, unannounced visits tosmelters with business connections to HTC have helped determine the source of metals used in the smelting
process. Future inspections covering conflict minerals will mark stricter dynamic control.

Partner Relationships

2016

HTC has not only monitored and managed its supply chain and prohibited the use of electronic parts producedwith the minerals but also supports the audit and certification process of the minerals to ensure all theminerals HTC uses are conflict-free.

These are mainly to do with working hours and employee health checks with respect to working conditions.
There were some problems found in the fire safety arrangements and there was not enough personal protection
equipment. The labor and ethics management system was not sound. Follow-up actions for these problems,
found in 2012 and 2013, have been completed. Problems found in 2014 and 2015 are being handled in 2016.

053

Conflict-free minerals1
products are scheduled to
be developed for market
launch in

In addition, through a responsible procurement practice, our suppliers andwe shall comply with the “HTC Conflict Minerals Procurement Policy” andsign the “Source of Metal Mining Questionnaire” and “Conflict-Free Minerals
Letter of Guarantee” in a concerted effort to avoid all use of conflict minerals.

Inspection results

DefectConduct supplierclassification according to
the audit result

We have to shoulder the responsibility and have asked our suppliers not to use material indirectly
sourced from Tin mines on Bangka Island. However, Indonesia is a major supplier of Tin minerals andit is impossible to completely avoid using Tin from Indonesia. The option for the moment is effective
management and the signing of an agreement with our providers that ensures only Tin minerals from
Bangka Island that have not been mined in violation of human rights be supplied. This violations include
using child labor, and actions that endanger the environment. The suppliers are required to promise to
take responsibility and provide assistance in countering the devastating impact of illegal mining activity
on the environment and the people. The goal being to maintain the sustainability of the environment.
1

Regarding to the Conflict-Free minerals products, HTC will follow and base on the “Conflict-Free Smelter List” released by Electronic Industry Citizenship Coalition. So far, they havereleased lists of qualified Gold and Tantalum smelters. HTC will keep focusing on relative measures and actions.

2

The Conflict-Free Smelter Program website of the Electronic Industry Citizenship Coalition is http://www.eicc.info/CFSProgram.shtml

HTC 2015 CSR Report 054

Employee
Relations ___“The key to maintaining the momentum of
innovation in a company lies in its having
competent and talented employees”. HTC
wants to help people around the world interact
and communicate. We believe in the power ofunity and the spirit of the “Pursuit of Brilliance”,
of continuing to motivate our employees in the
pursuit of better performance, and the creationof a revolutionary and excellent mobile device
for a great user experience.
We encourage our employees to explore theunknown and commit to bringing innovative
designs to daily life. They need to re-think how
to build connections between the world andthe people around the world, as well as their
dreams. We are taking advantage of talented
people from both the East and the West and by
sticking to our dreams, our passion for work,
the courage to meet challenges, and the spirit ofinnovation, we remain committed to providing
a multi-cultural, highly challenging and vital
working environment.

HTC was recognized as an “Employer Adequately Hiring Handicapped Workers in
Taoyuan-Hsinchu-Miaoli Region” in 2011.
In 2012, HTC hired more than 5,300 employees in Taiwan, and was one of the Top10 Companies in the TWSE RA Taiwan Employment Creation 99 Index.
2014 – Awarded the Excellent Importers & Exporters Certificate for Outstanding
Contribution to International Trade by the Ministry of Economic Affairs.
2014 – Awarded the Excellent Employment bronze medal by the Taoyuan County
Government.

Attracting and Retaining Talent
Overview of Manpower Structure
Employees are the vital HTC assets and the company recruits promising talent from all around the world. Thisis especially important in product design, the user interface, branding, and business marketing. Professionals
are also recruited from the United States and Europe. At the same time, HTC devotes to provide diversified,challenging and enthusiastic work environment.
In the end of 2015, HTC global employee workforce totaled 12,442. Of these, 362 were foreign supervisors,
accounting for 24.63% of the total number of executives worldwide; foreign supervisors and professionals
together accounted for 18.61% of the total number of executives and professionals worldwide and 18.91% of the
1,470 supervisors were women.
In 2015, HTC laid off 232 employees in accordance with Article 11-2 of the Labor Standards Law, which
stipulates lay-off conditions as “should there be an operating loss or a business contraction.” HTC pays more
severance than is demanded by the law.

HTC Manpower Overview
Unit

HTC has an open selection procedure for the recruitment of employees. As long as you are good enough, youwill find a place here. HTC follows the principle of equal opportunities for all and provides fair employment
opportunities regardless of ethnicity, skin color, social rank, language, religion, party affiliation, birthplace,gender, sexual orientation, marital status, appearance, or other non-work factors such as specified
protection by the government. HTC is committed to providing a multi-cultural and highly challenging andvital working environment.

Employee Relations

2014

2015

Global Employee (Male)

Individuals

8,000

8,699

6,524

Global Employee (Female)Individuals

7,872

8,201

5,918

Full-time workforce (Male)

Individuals

7,949

8,655

6,493

Full-time workforce (Female)Individuals

7,816

8,149

5,885

Direct employees (Male)

Individuals

4,375

5,131

4,466

direct employees (Female)Individuals

6,658

3,568

1,768

Indirect employees (Male)

Individuals

3,625

2,091

2,058

Indirect employees (Female)Individuals

1,214

6,110

4,150

Employees under fixed-term contracts (Male)

Individuals

51

44

31

Employees under fixed-term contracts(Female)Individuals

56

52

33

Percentage of employees younger than 30 years old%

60.94%

55.70%

47.32%

Percentage of employees aged 30 to 50 years old%

37.61%

42.25%

49.84%

Percentage of employees older than 50 years old

%

1.45%

2.05%

2.84%

Unit

2013

2014

2015

Contingent workforce (Male)

Individuals

1,334

328

0

Contingent workforce (Female)Individuals

777

232

0

Taiwan057

2013

HTC 2015 CSR Report 058

America Region319

HTC’s direct turnover rate in 2015 was 21.9%,
with the statistical frontier encompassing the
Taiwan region (including students involved
in industry-university cooperation programs,interns, and foreign workers). The indirect
turnover rate was 17.98%, with the statistical
frontier covering the world. To calculate theturnover rate, divide the number of employees
leaving the company by the total numberof employees during the same period. The
figure does not include employees who weredismissed for cause.

Europe, Middle East & Africa

264

The Global
Distributionof HTC Personnel
Total

12,442Asia-Pacific Region

11,859Level

SeniorMiddleGeneral

Total

60

1,787

6,153

7,768

0.75%

22.34%

76.91%

8

369

7,495

%

0.10%

4.69%

95.21%

Sum

68

2,156

13,64814,252

Male

72

2,580

6,047

8,699

0.83%

29.66%

69.51%

100.00%

11

661

7,529

8,201

%

0.13%

8.06%

91.81%

100.00%

Sum

83

3,241

13,576

16,900

84

2,477

3,963

6,524

0.68%

19.91%

31.85%

52.44%

15

661

5,242

5,918

Year
Male
%
Year

2013

2014

< 30

30~50

> 50

Male

5,377

2,337

158

%

37.45%

16.28%

1.10%

4,154

2,179

151

%

28.94%

15.18%

1.05%

Male

4,153

4,411

135

%

24.57%

26.10%

0.80%

Female

5,261

2,729

211

%

31.13%

16.15%

1.25%

Male

Male

2,592

3,802

130

%

%

20.83%

30.56%

1.04%

3,296

2,399

223

%

0.12%

5.31%

42.13%

47.56%

26.49%

19.28%

1.79%

Sum

99

3,138

92,05

12,442

Female2015
Female%059

Employee Relations

Total

2013

14,356

Female%2014
16,90012,442

2015

FemaleFemale6,484

HTC 2015 CSR Report 060

A Sound Wage and Welfare System
HTC is committed to maintaining an innovative, challenging, and profit-sharing work environment. In addition
to meeting statutory requirements, we are also committed to fulfilling the needs of our employees and provide allkinds of appropriate welfare measures as well as attractive and motivating compensation and benefits programs.
We encourage our employees to do their best and share the growing profits with the company.
HTC salary ratio for men and women in Taiwan
Management salary ratio(male: female)

2015

Male

Female110

100

General staff salary ratio(male: female)Indirect labor

New recruits basic pay andTaiwan minimum wage rate

Direct labor

Male

FemaleMale

Female

119

100

99

100

Type

Basic pay
(direct)

Minimum
wage

1

108

100

2

125

100

Note: 1. Equation—(Average monthly pay for male / Average monthly pay for female) * 100%
2. Type 1—five-day workweek scheme, covering 4% of employees.
3. Type 2—monthly rotating shift scheme, covering 96% of employees.

Total employee salaryand benefits expenses (NT$)

2013

2014

2015

Comparison of2014 to 2015

10,982,300,000

11,126,516,000

10,133,909,000

91.08%

Note: Total employee salary and benefits (proprietary financial statements)

In addition to bonuses, the company also focuses on talent retention. We recognize outstanding employeeswith an Employee Recognition Program initiated by funds set aside quarterly for individual units. This allows
them to publicly recognize outstanding employees and teams each year and bring them to headquarters fromaround the world in recognition of their contribution and for the presentation of incentive bonuses. In addition
trophies are presented in recognition of service to employees who been with the company for five, ten and fifteen
years. HTC also has an internal replacement system to provide the necessary assistance to staff needing to betransferred, or to those making application for transfer, or who are seeking job enrichment or a change of career.
HTC has an official and lawful retirement and pension plan that was established when the company wasincorporated. An amount equivalent to 2% of the monthly salary has been appropriated in the retirement
reserve since November 1999. An amount equivalent to 8% of the monthly salary has also been appropriated as aretirement reserve by the Labor Pension Committee since 2004. After implementation of the new pension planon July 1, 2005, in addition to the legal reserve for those employees who selected the new pension contribution
system, those employees with the old seniority system, after presenting the actuarial results to the competentauthorities for approval, have their appropriation rate adjusted from 8% to 2%.

061

Employee Relations

The HTC Welfare Committee is responsible for all employee benefit
matters, including education scholarships for children, festival gifts,
book gift certificates, department travel subsidies, activity subsidies,and group insurance. The committee is also responsible for the
gymnasium and outdoor playgrounds.

Other benefit programs
We provide a wide range of employee welfare and benefits programs,
including: Labor and National Health Insurance, a pension fund,commercial group insurance, meal allowances, annual travel subsidy,
physical exams, department’s dinner (event) subsidy, monetaryassistance on the Dragon Boat, Mid-Autumn, and Chinese New Yearholidays, and for personal events, like wedding and dependents’
funerals, and company club activities, free on-site gym and fitnesstraining courses, massage and bookstore gift coupons, etc.

Group Insurance

Employee salary and benefit increase ratio
Item Description

Diversified Employee Welfare

HTC and the Welfare Committee buy group insurance for employeeswith a maximum coverage of 60 times the monthly salary, so that an
employee who is hospitalized for sickness, injury, or who dies, can still
provide some security and protection for their families.

Education Scholarships for Children
The HTC Employee Welfare Committee provides scholarships for thechildren of employees from elementary school to college: NT$800
for elementary school students, NT$1,600 for junior high school
students, NT$2,000 for high school and vocational education students,
including first, second and third year college students; and NT$3,000
for college students in their fourth and fifth year.

Staff Emergency Relief
Employees who become victims of an occupational accident thatcauses death, disability, injury, or an illness are entitled to receive
compensation from HTC in accordance with the Compensation
Act. In cases where compensation has already been received by thecompany in accordance with the Labor Insurance Act or other laws
and regulations, this can be offset by the company. The company andthe Employee Welfare Committee also offer group insurance coverage.

HTC 2015 CSR Report 062

Free Dormitory for Students
HTC has given in-depth consideration to accommodation space and other needs of students. Living andentertainment facilities, such as a gym, library, reading and common rooms, as well as the provision of fulltime administrators and guards who form a joint force with the police and citizens to ensure the safety andsecurity of the residents.

Transportation Vehicles
HTC offers employees many different means of transportation on several different routes for commuting toand from work. The vehicles provided ensure safety and peace of mind as well as being very convenient.

The Meal Subsidy Program
Meal subsidies of NT$55 for lunch, NT$75 for dinner, and NT$100 during holidays are offered to indirect
labor. Meal subsidies of NT$50 for lunch and dinner are available for direct labor working during regular officehours. HTC also offers afternoon tea from 3pm to 5pm.

Annual Health Check Subsidies
All employees receive a health examination subsidy according to their job titles and rank. An agreement is also
signed with the health examination agency to include the spouse and family in the health examination program.
DL

IDL

Top Management

Qualification

Direct labor with oneyear seniority

Indirect labor with one-year
seniority

Director and Junior VP andsuperiors with one-year
seniority

Items

Health examination better
than required by law

Health examination better
than required by law

MRI + blood test

Subsidies$1,200

Divide health examination
packages into $3,000,$4,000, $6,000 by jobs levels$25,000

Family Day 2015
HTC not only values their employees, but also places great value on family relationships. Family Day
events are held annually and all employees and their families are invited to participate. The mission is tobring the Company and the family closer through the Family Day events and HTC takes this opportunity
to show their appreciation for the loyalty and support of all their employees.
In addition to DIY activities for children and parents, the HTC Family Day 2015 provided recreation space
for all ages and a wide variety of food stalls. Charity activities highlighted the event and a fair was held,social welfare groups and charity organizations like the Chinese Rock Leadership Association, the Qi Zhi
Vocational Training Center, the 1919 Chinese Christian Relief Association and Syin-Lu Social Welfare
Foundation all took part and there were many generous donations. Some of the HTC clubs and units, suchas HTC Fellow, the Human Resources Department, and the Character Formation Club, and cooperating
firms like the Taiyeh Group and Tienan Security Corporation were mobilized to organize a charity flea
market. A total of 1,618 items were donated for the sale and fetched NT$68,121 which was donated to the“Dream Come True Program” for children in remote regions.
The Family Day food stalls were run by 85 different vendors who donated 5% of their takings for the day tocharity organizations. NT$124,260 was received and donated to the Chinese Rock Leadership Association
which used it in relief efforts for people affected by the deadly earthquake in Nepal in 2015.

9,732 employees attended family day
and 5,636 families participated in the Family Day events.

063

Employee Relations

HTC 2015 CSR Report 064

Valuing Human Rights
and a High Standard of Professional Ethics
HTC Code of Conduct
We place great importance on employee integrity and uphold high ethical standards. The company
has established the “HTC Code of Conduct” as the prime directive that directs all our employees in theperformance of their work. Every person in our employment, in any of our branches and subsidiaries, nomatter their position, level and location, must comply with these ethical standards.
Particular clauses are set out in the HTC Code of Conduct, including those related to secrecy, corporate
property, protection of corporate and personal information, employees and their direct relatives, consumers,
vendor relationships and business etiquette, business travel, conflicts of interest, external part time jobs,
insider trading and so on, to place strict curbs on any kind of dishonest activity. HTC has introduced
procedures for donation by providing principles for their approval and handling.
New employees undergo an orientation training session on the same day they report for duty. They learn aboutthe HTC corporate policy, the Code of Conduct for employees, ESH policy and corporate social responsibility.
An e-learning program for new employees is also provided that explains the HTC corporate principles using
exemplary cases. In any case of conflict with the laws in force in places where HTC operates, the local HTC
HR team shall submit the context of the laws at issue to HTC HQ for review. Except for a case such as theabove, any violation of the “HTC Code of Conduct” can lead to serious disciplinary action, including thetermination of employment.

Employment of the Disabled
and an Accessible Working Environment for the Handicapped
HTC values human rights and equal compensation and does not tolerate gender discrimination. As aninternational corporation, and a member of EICC (to view the EICC membership list please visit http://www.
eicc.info/MEMBERSHIP.htm), HTC strictly follows the related regulations and as a responsible employer
incorporates care for human rights into all aspects of daily operations

Non-Discrimination and Harassment
Diversity of Nationality is one of the characteristics of HTC staff and the principles of equality and nondiscrimination are core company values. We are an equal opportunity employer and do not discriminate inemployment and personnel practices on the basis of race, sex, age, physical or mental disability, religion,
national origin or any other characteristics protected by Law.

No Child Labor
HTC strictly prohibits the use of under-aged labor in our own manufacturing facilities as well as those of ourmanufacturing suppliers. We mandate proof of age for employment to ensure we meet all local labor laws andthe requirements of the jurisdictions where we operate.
Our Supplier Code of Conduct for manufacturing suppliers restricts any form of unfair labor practices andclearly articulates our expectation that all factory workers are of legal working age.

065

Employee Relations

HTC very well understands the basis and the implementation of corporate social responsibility startingfrom the care of staff and the creation of more diversified employment opportunities. In 2015, HTC hired
147 handicapped people and this exceeded the mandatory minimum number by 41. (The number of people
involved was weighted.)
As a responsible employer, HTC is willing to hire disabled people. In addition to relying on talent-job matching
conducted by the supportive or sheltering bodies, we also allocate jobs in consideration of the characteristics
of individual handicapped worker. We can also tailor job descriptions and the working environment, to allow
the handicapped to have the opportunity to prove their abilities. Thorough education and training is also
provided to allow the handicapped to make a contribution to society and enhance their own quality of life.

A tailored barrier-free work environment
HTC has designed a special line for disabled employees to make it possible for them to work in a comfortableenvironment. A series of special education and training sessions have also been arranged for them.
Volunteers from the line staff have taken the initiative and assumed the role of “Little Angels” to help these
employees with food, clothing, accommodation, and transportation within the company. They also help
them get to know their work and provide all the necessary assistance. These disabled personnel are able towork independently and with confidence after some systematic training and on the job practice.

HTC 2015 CSR Report 066

Valuing Employee Health
Valuing Female Employees
HTC regards the female workforce as very important. In view of the increasingly large number and influenceof workingwomen, we have continued to improve our software and hardware, in the hope that a diverse culture
based on gender equity will help HTC become more competitive. The physical and mental caring mechanisms
we provide for our female employees include:
A female cancer-screening program is part of the annual health check. This includes the choice of a Pap
smear, a breast ultrasound exam, or a mammogram.
Consideration for the physiological needs of female workers, providing a comfortable environment for
rest, the loan of free hot pads, menstrual pain assessment, health knowledge and education, physician
consultation or referrals and so on.
A friendly environment for breast pumping, in addition to the free selection of time for breast pumping,provide nursing facilities and environment better than required by law, such as, a warm and comfortable
nursing environment, ultraviolet milk bottle disinfection devices, microcomputer thermos, comfortablesofa chairs, breast milk storage refrigerator, and infant breast-feeding-related publications and light music.
HTC has 25 breast-milking rooms that were visited 50,620 times in 2015.
We provide employees with opportunities to have enriched
professional life in HTC. We encourage and support employees togive birth and raise children. In addition to providing full support
for pregnant employees, we also have an application mechanism forparental leave in place, so that the postpartum employees can haveparental leave and take care of their babies with their future working
rights fully assured.

Employees applying
for Family care leave
Year

2013

2014

2015

Male

131

98

91

Female

149

132

151

Total

280

230

242

HTC regards employees as its mostvaluable property. For this reason, we
strive to create a working environmentthat is safe, comfortable and which
inspires creativity. We always care for
employee working needs and try our best
to satisfy them. In HTC, we know that
only when all our employees maintaintheir professional strength and engage
themselves fully in development of
the company will HTC succeed as acorporation and enjoy sustainable
development.
HTC pay particular attention to fourareas: “health management,” “healthenhancement,” “vocational health,” and“employee assistance.” to ensure theeffective use of support resources andsafeguard the health of our employees.

Health Enhancement Scheme for HTC Employees
Employees applying for Unpaid Parental Leave and Resuming Duty after Leave

Area

Male

%

Female

%

Total

1,471

64.66%

804

35.34%

2,275

The Number of Person Actual Applied UPL in 2015

61

29%

153

71%

214

The Number of Reinstatement-to-be in 2015

61

31%

136

69%

197

The Number of Application for Reinstatement in 2015

32

25%

98

75%

The Number of Qualified for UPL for Raising Children in 2015

Reinstatement Rate

HealthManagement

Health center for managing and planning affairs related to employee healthGeneral and outpatient rehabilitation services
Health exam and management for staffs
Management/tracking for abnormal HE results, Special care and case follow-up
management
Health information webpage

HealthEnhancement

Comfortable breastfeeding rooms, Smoking cessation promotion, Weight-loss Classes,
Topic seminars, Blood donation activity
Influenza vaccination, Cancer screening, Infectious disease control and treatment
Outdoor fitness equipment settings, Health steps (pictures /music), Aerobics
Family Day
CPR & AED course design

Vocational
HealthEstablishment and maintenance of HE Database for Special-Operation Staff
First-aid training, Prevention and treatment of occupational injuries and illness, Workers
return to work management

Employee
Assistance

Mental consultations, Special counseling
EAP promotion activities and leaflets for new employees, EAP advocacy monthly
newsletter

130
66%

The number of application for reinstatement in 2014

33

28%

87

73%

The Number of Retention Over 1 Year After Reinstatement in 2014

22

24%

69

76%

Reinstatement Rate

120
91
76%

Note: 1. The “number of qualified for UPL for raising children in 2015” was based on the number of employees who had taken maternity or paternity leave within 3 years (2013-2015).
2. The “number of reinstatement-to-be in 2015” includes applied in 2013 and should reinstate in 2015, applied in 2014 and should reinstate in 2015, applied in 2015 and should
reinstate in 2015.
3. The “number of application for reinstatement in 2015” includes applied in 2013 and reinstate in 2015, applied in 2014 and reinstate in 2014 and applied in 2015 and reinstate in 2015.
4. The “Reinstatement Rate in 2015” = Number of employees reinstated in 2015 / Number of employees that should have been reinstated in 2015
5. The “Retention Rate in 2015” = Number of employees who had worked one year consecutively after being reinstated in 2014 / Number of employees reinstated in 2014
6. The “number of application for reinstatement in 2014” includes applied in 2012 and should reinstate in 2014, applied in 2013 and should reinstate in 2014 and applied in 2014
and should reinstate in 2014.

067

Employee Relations

Actions

HTC 2015 CSR Report 068

Health management

Health Promotion Programs

In 2014 HTC established a “Staff Clinic” in Taoyuan. Professional medical
counseling is available for staff and there are resident doctors in the clinic.
There is also excellent physical therapy and health management service.
Health check services for employees cover the divisions of general
medicine, family medicine, rehabilitation medicine, physiotherapy,
and radiographic screening. HTC employees are not required to paya registration fee at the staff clinic. The dependents of employees andsuppliers (stationed at HTC to provide service) can be treated at thestaff clinic and enjoy the same benefits and services as HTC employees.
Approximately 8,163people attended the clinic in 2015.

Total deducted registration fees in 2015 =NT$150,700 (3,014 people)
Total deducted copayment in 2015 = NT$245,350

8suppliers

26

consulting

1,847

trauma treatment477

occupational hazards
and job placement

163

Physiotherapy

2,810

Total

8,163

7,624,050

8,708,897

Health check follow-up and statistics in 2015
The number of new recruits with physicalabnormalities follow-up

669

The number of employees with physicalabnormalities follow-up

1,485

The number of staff members from each
office who attended the 2015 Health
Promotion Courses
3,791

2,681

1,003
71

36
Total

Hsinchu

TaoyuanEmployee Relations

On Family Day in 2015 the HTC employee infirmary
designed a series of fun activities for children andparents. These included the “The Mysteries of Human
Body,” which gave an introduction to the human bodyand organs, “Health Jumps” and “Swing with me,”which were games aimed at making children andparents move as much as possible and have a goodlaugh. On the day of the event, we also had assistancefrom the Taoyuan General Hospital, Ministry of
Health and Welfare, and a “child development
screening service” was provided which gave an
introduction to child development. The “HealthGate Keeper” activity offered screening tests for oral
cancer, colon cancer and blood sugar. There was alsoa pedestrian contest for babies. In the contest, themany cute babies added much fun to Family Day and
1,172 people attended.

Tainan069

Staff Clinic and Family Day

TPE1

According to Article 6-2 of the Occupational Safety and Health Act (OSHA), Article 11 of the Enforcement
Rules of the OSHA, and Article 324-1 of the Regulations for the Management of Occupational Safety andHeath equipment and facilities, employers have the obligation to plan and take the necessary safety andhealth measures for employees taking rotational shifts, night shifts or who work for long hours, in case
medical conditions might occur which are related to an unusually heavy workload. Appointments are madewith medical doctors, or health consultants for employees should a medical check find them to have a healthproblem. A change of work or the adjustment of working hours is usually recommended.

0

Total

7,605,100

Exercise And Diet
Weight Loss Courses

2,248

115

271
Infectious Diseases
And Cancer Prevention

1,952

108

Vision Care

2,082

0

665

450

Parenting Courses
For Women

Number of
persons

0

239

1,480

Health Promotion
Awaweness

2015

157

Health Care for
Digestive Tract

2014

248

First Aid Courses

2013

Preventive measures against health-endangering heavy workloads

The number of staff members from each office
who attended the 2015 Health Promotion Courses

Health Care for Men

Year

Number of injuries due to fatigue

HTC staff clinic FB Fans Website: http://www.facebook.com/HTC.EmployeeClinic

72

Number of employees
who received an IDL health checkup subsidy
over the years and the cost

Expense (NT$)

A Facebook fan club has been set up by the HTC staff clinic personnel to give all employees easy access to positive
health management information. It is also used as an adjunct for staff training in self-health management and tobuild a healthy and happy work environment for HTC employees.
3,805

Trauma Course

Health management and a health education andcounseling service were arranged and employees
needing further attention met with a physician so that
more comprehensive health care and treatment could
be arranged.

3,006

Mental Health Care

In 2015, HTC spent NT$8,708,897 on subsidized healthchecks for 2,248 employees in Taiwan and 80.82%
completed health checks. HTC also offers workplace
health check services, a measure launched after July
2015. A total of 1,796 employees have enjoyed thisbenefit which will be continued.

general staff
Outpatient
servicedependents

PeopleEAP Propaganda

HTC provides health check subsidies to its employees in
Taiwan according to job title and grade. The dependentsof the employees also have access to health checks at
any of the HTC contracted medical institutions.

Category

It is a well known fact that the pressure of a technology industry tends to cause employees to neglect theimportance of their health. For this reason HTC, in addition to providing employees with an additional
comprehensive health care service, also promotes relevant health care programs to provide employeeswith accurate health management information and also to give staff the necessary self-health management
capabilities. A total of 101 health promotion events, attended by 3,805 persons, were held in 2015. The averagelevel of satisfaction achieved was 94.10%.

Human Factors
Engineering Courses

Annual Health Check Subsidies

The number of people
treated in the Taoyuan
company infirmary in 2015

HTC 2015 CSR Report 070

Occupational Health

Drinking water quality control allows employees to drink without reservation

The work environment at the HTC Taoyuan Plant is carefully tested and monitored. In 2015, all 99 workers
engaged in operations that might endanger their lives, such as those involving ionizing radiation, must receive
a thorough health checkup. The number of workers put under Grade 1 Control was 81; Grade 2 Control was 17.
There was only one worker put under Grade 3 Control. In compliance with Articles 13-15 of the Labor HealthProtection Regulations, workers subject to Grade 2 Control were sent individually to the company infirmary for
health consultation with a doctor, who gave instructions on personal health and how to prevent further problems.
The worker under Grade 3 Control, was rechecked by a specialist and found to have recovered enough to be put
under Grade 2 Control.

HTC has set up a comprehensive water fountain2015 Test Time
Q1
Q2
Q1
Q2
inspection plan to ensure the standard of purity ofdrinking water. Regular maintenance, water sample
Total Bacterial Count (CFU/ml) pass pass pass Passtesting, and records disclosure is done according
Coliform (CFU/101ml)
pass pass pass pass
to drinking water regulations. The maintenanceand care of the drinking fountains is carried out
by a professional company and testing of water purity is carried out by an environmental testing agency that is
authorized by the EPA to take regular samples and perform the tests. The results of the water quality tests are
published and the records are also posted in a prominent position close to the drinking fountains.

Employee Assistance Program (EAP)

A quality workplace to keep employees happy at work

The constant challenge and rapid changes in our highly technological industry result in rather high job
stress in our employees. The avoidance of stress is a major concern at HTC and we pay constant attention toemployee working hours to steer clear of disorder and the attending stress and fatigue.
HTC has been working with the Hsinchu Lifeline Association since 2009 to provide employees withpsychological counseling and guidance with respect to working career, relationships, family and parenting,gender sentiments, mental illness, and physical and mental stress. All employees are entitled to six freecounseling sessions per year at the expense of the Company. In 2015, 198 persons had taken advantage ofcounseling.
Appointment Hours: Monday ~ Friday 9am ~7pm
Reservation Tel: Mobile: 03-5260415

The Employee Assistance Program (EAP) interviews
2013

2014

2015

Number of TelephoneCounseling (Free)

81

82

120

Number of Interviews

60

70

78

Hours of Interviews

86

79

91

Number of Interviews (Male)

30

38

38

Number of Interviews(Female)

30

21

40

Number of Interviews(Direct Staffs)

-

16

11

Number of Interviews(Indirect Staffs)

-

54

67

Invested expense (NTD)

071

Employee Relations

420,800

A fully equipped gymnasium has been set up on the tenth floor where fullheight glass windows allow those working out to also enjoy the view. There
are 74 pieces of modern fitness equipment and coaches are available onschedule to provide guidance and advice. In addition, there are yoga, boxing,
and other stress relief courses available. Another spectacular sports facility is
to be found on the 17th floor. It is a large hall, practically a stadium, with a 10
meter high ceiling that can be used for basketball, tennis or badminton.

Use of the Gymnasium

HTC has commissioned professional fitness management consulting firms andprofessional suppliers to manage the gym and to provide full-time services.
These include onsite fitness instruction, fitness curriculum planning, andadvice about the prevention of sports injuries. This provides employees withthe best health consulting services and environment. Employees get help forthe establishment of positive sports safety and healthcare. Courses are planned
and arranged on various health topics and activities and employees canparticipate according to their preferences.

Participationin aerobic classes

Location

Number of users

Taoyuan

51,917

Xindian

52,022

Location

Number of users

Taoyuan

1,232

Xindian

7,667

401,200 434,800

HTC 2015 CSR Report 072

The Sense Academy

Gallery-like Environment

To stimulate employees’ art appreciation and aesthetic application to life and design, HTC invites experts
in branding, aesthetics, and humanities, arts, worldwide fashion and other fields of interest, to help
employees develop their aesthetic sense and appreciate the balance of sense and sensibility while facing
the pressures and challenges of global science and technology development.

The ground floor lobby in the HTC headquarters building in Taipei is used as a gallery for art exhibitions.
Many famous and potentially famous Taiwanese artists are able to show their work to the more than
2,000 employees, customers and business partners who pass through the lobby each day. In addition, the
2nd and 3rd floors are used by the HTC Education Foundation that is focused on character education. The
Foundation runs training classes to cultivate domestic and foreign character education teachers who help
children in remote villages to expand their life experience and broaden their horizons.

CourseLecturer

Number of participants

Use the power of documentation to change the world

Yang Li-chou

77 (2015/04/15)

Use story-telling to create your own brandLiu Hsuan

160 (2015/05/22)

The power of story-telling

Hsu Yu-jen,
the HTC employeeturned speaker.

101 (2015/06/24)

The central staircases in our buildings are decorated with paintings made by members of the company
painting club and photographs taken by enthusiasts from the photography group. One work is displayedon each landing and there is a text introduction to each. Green decorating ideas are also used, and there
are plants in plots and hanging baskets. Background music is played and the stairwells are transformed
into galleries with diverse aesthetic elements. The fresh and interesting atmosphere helps to release both
physical and mental stress.

2015 HTC Storyteller Activity
We held the HTC Storyteller Activity in 2015, hoping that
more HTC employees would be inspired to find the creative
potential within themselves. HTC’s partners were encouraged
to speak and share their creative ideas and heart-warming
stories. Every employee had the chance to voice their ideas
and demonstrate personal charisma. Many who were present
and didn’t know the people who ascended the podium tospeak, became very interested in what their colleagues had tosay. This helped to enhance interaction and resulted in new
friendships between employees.
Activity achievements:
1. Story-tellers were invited to the event. Known as “Grandpa
Mar” on TED Talks, Logan Hsu, whose videos have beenviewed more than two million times on TED Talks, was oneof the story-tellers. More than 100 HTC employees took part.
2. Those who made it to the final round were given a day ofintensive speech training to teach them some of the qualities
needed for storytelling, stage performance skills, instant shortspeeches, and advice on how to adjust oneself and so on.
3. One-on-one coaching sessions by outside instructors werearranged for the ten finalists.
4. Sense Academy: TED xTaipei Organizers and HTC shortspeech contest winners were invited to give a speech. Morethan 100 people were involved in the activity.
5. We encouraged HTC short speech contest winners toparticipate in TED x Taipei’s amateur speech competition.
Two partners joined the competition. One of them madeit to the final round, and his story was reported as such byInternet media EDCbuzz.
https://www.youtube.com/watch?v=46pcvLD7Ejs

073

Employee Relations

HTC 2015 CSR Report 074

Physical and Mental Pressure-Releasing Mechanism
To encourage our employees to develop the habit ofexercise, we have built a high standard fitness centerwith fitness training professionals in attendance.
Training courses are available that include slim curve,
pain relief, aerobics, yoga, and flywheels. In addition
we have a contract with the Eden Social Welfare
Foundation who have set up a full-time blind massage
facility. Employees can take advantage of the servicesof an expert masseur to relieve pressure and fatigue.

HTC cafeterias are operated by the company and the ingredients and cooking oil used are purchased by thecompany and not outsourced. To safeguard the food safety and health of employees, we avoid all questionable
ingredients and insist that all purchases have CAS, GMP, ISO and HACCP food certification. Branded foodcommodities are given top priority and we always support the local agricultural producers.
Following a string of food safety incidents involving the adulteration of cooking oils and the addition of illegal
substances to food in recent years, HTC has taken the initiative to study the feasibility of producing health tea
drinks for employees. In November 2014, retort pouch drinks and other beverages offered free at the office kitchenswere replaced by tea prepared by the staff restaurant. Employees can now enjoy a cup of healthy fresh tea.

Number of users

Taoyuan274

Xindian230

We offer employees a wide range of interfaces,
provide grants and encourage them to participate incommunity activities. We urge employees to cultivate
an interest in sports and leisure activities in theirspare time to enhance life experience. We organize allkinds of events, family days, sports competitions, andliterary competitions for employees to enjoy leisurely
and friendly gatherings outside work.

To ensure our employees have “healthy and satisfying food,” we have engaged experienced licensed chefs fromfive-star hotels and dieticians to design and produce healthy, nutritional, and delicious meals using ingredientsfrom reputable and certified food suppliers. The meals are nutritionally balanced and the number of calories iscontrolled, giving HTC employees the opportunity to enjoy high quality and healthy food.

Food safeguards

Number of persons
who received of massage in 2015
Location

Food safety, HTC healthy meals

In addition, a light food cooking counter conveys the concept of healthy eating. The importance of not overcooking or frying food too long is stressed. Meals low in sugar, salt and seasoning are advocated and eventexting to have a food order prepared for collection is possible, all these are matters that have been given
careful attention. The dining environment is well styled with full view curtain walls, designer furniture, green
plants, and artistic decoration.

	
  Selectingsuppliers

1. Suppliers that are well-known brands in the market are selected and their capitalstock is confirmed (a guarantor or surety bond is required unless the capitalstock is more than NT$100 million).
2. It is requirement of the contract that all suppliers must have CNS certificationand must also have a current product liability insurance policy.

Activity Groups
The available clubs are: Badminton, Puzzle Board Games, Orphanage, Hawaiian Guitar, Leisure Fun,
Yuan-Men Tai-Chi, Creative Volunteer, Melody Health, Basketball, Table Tennis, Creative Aesthetics,
Cycling, Music, Photography, Fashion & Beauty, Tai-Chi, Ukulele, HTC Run, and Wine Tasting.

075

Employee Relations

Healthand Safety
Management

Checklists are used to control environmental disinfection, the dress code, waste
food control, refrigeration storage temperatures, and the use of energy. Strict
audits and checks are carried out and all activities are strictly managed from thesorting of ingredients, to their cutting, cleaning, storage and processing.

HTC 2015 CSR Report 076

“Café One” & “Bakery One” food safety
The HTC cafe and juice bar use only the freshest highquality natural ingredients. HTC has strict safeguards
for all food served and provides employees with healthy
meals without any additions in accordance with theconcept of healthy nutrition and “cooking for families.”
Only natural ingredients are used. The cafeteria boils
its own sugar and ensures the safety of additions.
Café One uses pure coffee beans to make coffee forthose who are lactose intolerant.
Soybean milk is made with non-GM soybeans for safety.
In addition, as a response to caring for the earth, kitchenutensils and all the cups used at meetings are reusable.
The counter drinks are offered at a discount to discourage
the use of disposable drinking cups.

Smoke-Free Workplace
HTC positively advocates the government policy of a smoke-free workplace. Tobacco control rules have been
established and there is an absolute ban on indoors smoking at all our facilities. In addition, we hold smokingcessation courses for employees who smoke. These courses are planned by physicians, social workers andnurses, and family members are invited to join. Tracking and follow-up coaching is done during and after
the courses. We also provide pressure release massage as an incentive for successful smoking cessation to
encourage employees to quit smoking on their own.
In compliance with the Tobacco Control Act, smoking inside company premises is prohibited.
There are outdoor smoking areas.

An Office Environment with Plants and Green Landscaping
We uphold the concept of environmental sustainability and weregularly increase our green space. The HTC outdoors green area now
totals 56,034m2 and there are many tree species native to Taiwan on the
grounds, such as Camphor, Yellow Cypress and the Taiwan Golden-rain
Tree. There are now 810 individual trees and our employees enjoy thelush green surroundings to their work environment.
To improve air quality, we have planted trees extensively inside thefactories and offices to purify the indoor air by reducing CO2 concentration.
The annual management fees for our green environment amounts toNT$3.95 million which is used to provide our offices with green areas tohelp reduce indoor air pollution (dust, carbon dioxide, and VOCs).

Tree Type

NumberCamphor

90
60
340
60
20
45
70
50
50
25
810

Yellow cypress tree
Podocarpus
Taiwan Golden-rain Tree
Indian Rosewood
Maple
Lobular Terminalia
Larch
Common Garcinia
Taiwan Cherry

In the office areas there are potted plants and are replaced regularly
Total
and provide a fresh environment changes from time to time. 700 ~ 730
potted plants decorate the Taipei and Taoyuan headquarters in 2015.
These serve not only as green decoration, but contribute to the reduction of indoor air pollution by dust andcarbon dioxide.
	
  	
  	
  

Green Walls, a Green Pergola, and a Green Roof
The surroundings, and parts of the inside of HTC factories that have plants, are gardens and not just patchesof green. There are functional green walls, green corridors, and a green roof. The sewage treatment equipment
and passages are curtained by green walls and green corridors. The green roof is covered with light coloredpaint that reflects sunlight and reduces the heat island effect to improve the green energy and carbon
reduction benefits.

077

Employee Relations

HTC 2015 CSR Report 078

Listening to Voice of the Employee
HTC employs more than 12,000 people around the world. The establishment of a sound means ofcommunication between management and employees is vital to the growth of a company. Therefore, HTC
pays great attention to internal communication with employees to build mutual trust and create a harmonious
atmosphere within the company. HTC’s labor union was established in 2015, but no collective agreement has
so far been made.
HTC is committed to creating an atmosphere of mutual trust between employer and employees while also
focusing on internal communications. At least six annual meetings are held. The minutes of these meetingare referred to in the resulting follow-ups, which include any necessary corrective action. In addition to theseregular meetings, employees may also reflect their opinions through various communication channels.

Smooth advisory and assistance channel
To protect the working rights of our employees, we have set up a diversified and smooth communication
channel that an employee can use to pass on information about problems and to receive a response
without delay. In addition to the employee care office in the major units that provide a relaxing space forcommunication, timely help with workplace problems can also be sought using the following channels:

Potential
work
problems

Advisory
andassistancechannelsWork problems

Consultation and referral to the Employee Assistance Program

All responses to proposals and the follow-up progress of these meetings are published on the HTC Intranet
website for review by all the employees. According to internal HTC statistics, the issues most frequently
discussed in the labor-management meetings are “the working environment,” “parking and transportation,”and “catering management.”

Leadership style 		and communication

Production line direct labor should dial extension 38585

Compensation, benefits,
and working hours

Employee Help hotline E-mail: HelpMe_8585@htc.com

In addition to these regular staff communication meetings, we have also set up several other communications
channels through which employees may make suggestions and offer opinions. One of these is the employee
complaints system that has a complaint hotline, suggestion and complaint boxes, a complainant e-mailservice, and a sexual harassment complaint mailbox. Labor meetings and employee opinion surveys are held
regularly for reference by supervisors in such matters as leadership, internal operations, enhancing employee
satisfaction, and work input improvement. A good communications mechanism results in harmonious labor
relations. Labor disputes, bad feelings and losses can all be avoided.

Workplace sexual harassment,
sexual abuse, or sexual
discrimination

Employee Satisfaction Survey

To provide employees with a more convenient information
network and services, HTC has built a proprietary company APP toprovide staff with readily available services, these include relevant
course information, the latest event announcements, staff clinic
services, as well as all kinds of reservations such as: regular physicalexamination, gym courses, massage appointments, restaurant
bookings, employee issues, and immediate feedback.

At labor-management meetings, pending issues not resolved in the last meeting are discussed first. The headsof related departments are invited to attend and propose practicable improvement measures. In the event thatany matter requires negotiation, the results are only valid if 75% of the attending representatives come to aproperly negotiated agreement.

Out of consideration for employees’ feeling towards HTC and their willingness to dedicate themselves tothe company, we are searching for factors that could enhance employee willingness to devote themselvesto corporate operations. Aon Hewitt was commissioned to launch a survey of the opinions of its employees
around the world in 2015. A total of 6,971 survey samples were sent out, and 5,572 were returned, a rate of 80%.
The 2015 survey covered 20 aspects, which included career opportunities, leadership, performance
management, learning and development, and reward and remuneration. The survey results were given to
management for review and have become a reference for planning the business goals for next year.
In 2015, we keep offering employees 1 day paid leave(birthday leave) and getting off work at 3pm the days
before 3-major holidays.

079

Employee Relations

Indirect labor should dial extension 28585.

Open and registration-exempt staff cares office

HTC Employees Notification System APP

Mobile Appeals channel: Employees can download an internal
mobile phone application developed by HTC to take photos
instantly and reflect opinions that will then be handled by therelevant units.
Operating procedures: The APP received 310 employee reports in2015. In addition to responding to employee opinions, information
about improvements made, or which are pending, will be sent
to the employee who made the report. Pending matters will befollowed up and monitored on a weekly basis.

Employee
Services Feedbackin 2015
Category

Number of cases

others77

Cleaning

8

Repair163

Restaurant

62

Total

310

HTC 2015 CSR Report 080

Complete Education and Training Plan
The cultivation of talent is the foundation of a going business concern. HTC, while engaged in the pursuitof growth and profit, is also committed to helping employees grow with the company. The creation of anenvironment that will help them continue to do this is very important. HTC is guided by business needs as wellas personal career development. The company strives to provide employees with enhanced professional skills, inaddition to assisting them seek a good career development direction; HTC has classified talent management anddevelopment as an important management indicator. Employees should improve and grow with the company.

Diversified learning channel, providing a comprehensive learning environmeny

Comprehensive Education and Training
To develop employee capability to meet global technology challenges and grasp the movement of the industry,
HTC provides annual training sessions and department-specific specialized courses. In addition, corporate
policy-guided organizational learning plans are arranged and subsidies for outside training are available.
Between 2013 and 2015, HTC invested nearly NT$40.05 million in employee training-related programs. Training
hours totaled 714,800 and there were nearly 202,700 attendees, each person receiving 46.90 training hours.
In 2015, HTC male employees received 171,647.3 hours of training and female employees received 86,597.8
hours of training. General staff received 135,938.56 hours of training, supervisors received 121,100.33 hours
and management 1,206.2 hours. The table below lists staff training over the years:

The design of the internal training courses is centered on the five core occupational
functions and the learning effect is substantiated through a series of diversified channels.

Year

There are physical and online courses for learning skills and drills.

Item

Course (hours)

Number of participants

Average training hours

2013

242,943

41,879

14.83

Experts in various fields are invited from around the world to share industry trends andfuture technology blueprints in creative thinking forums.

2014

213,658

98,587

12.64

The School of Wisdom – this emphasizes the combination of sense and sensibility, such as,brand, aesthetics, humanities and the arts.

2015

258,245

62,235

20.75

Learning tools, such as a mobile library and online learning platforms, are provided toencourage employees to study voluntarily.

Note: Total number of training hours of the year / total number of employees of the year (12,442) = average number of training hours per person of the year.
Average number of training hours per person in 2013-2015 = total training hours in 3 years / average number of employees in 3 years (15,241).

New Employee Training Courses
GeneralPersonnel
Comprehensive training courses
are arranged for new recruits
every month to assist themto blend into HTC culture
and develop all the necessary
knowledge and skills as soon as
possible. This training also helps
them appreciate the corporate
environment and recognize the“Quietly Brilliant” culture of thecompany.

New
Employees

Direct Labor

We ensure direct labor gets all
the professional knowledge andtechnical skills training needed
for their occupation categories
and specialization (basic,
professional, advanced).

The
management

To foster our key leadership teams, we have specially tailored Leadership Development
Framework training for supervisors at all levels. The curriculum is planned and combined with
HTC core values, organizational development strategy and direction, as well as leadershipand management functions. To ensure that these courses further the daily work of thedirectors and substantiate their leadership and performance, follow-up action plans areformed for each of these learning courses. These are devised to assess performance both
before and after training, in such aspects as the supervisor’s counseling records, subsequent
presentations, and so on.

081

Employee Relations

New employees receive comprehensive training from the
day they first report for duty through several different
learning communication channels. These include new
recruit monthly sessions and a variety of practical andonline courses to help new employees adapt to HTC culture
and develop a full range of knowledge and skills in the
shortest possible time. In addition, the Share Tree campaign
encourages new employees to talk to their predecessors toshare information about the company and to help them joinand quickly fit into the HTC family.

Share Tree activity, new recruits and senior’s photo

HTC new recruits statistics
Unit

2013

2014

2015

Total number of new recruits (male)Individuals

2,637

1,167

901

Total number of new recruits (female)Individuals

3,847

560

723

Percentage of employees under the age of 30%

84.62%

74.29%

79.74%

Percentage of employees aged between 30 and 50%

15.21%

25.01%

19.77%

Percentage of employees over the age of 50

%

0.17%

0.69%

0.49%

HTC 2015 CSR Report 082

Lead
PeopleLead
Business

We are quietly brilliant
er
ent
ec
th
t
a

Cultivating Key Leaders
Si

m
pl

ic
ity
r

HonestHumbleSimpleDynamic
Innovative

Su

Po
we

Nurturing talent is a major focus at HTC and we have a special
blueprint for systematic learning and development. The designof the internal training courses is centered on the five coreoccupational functions and the learning effect is reinforced bya series of diversified learning channels.

Cust
om
er

New recruits training courses

rp

es

r

is

Lead
VisionHidden

HTC actively promotes company culture in the face of rapid changes in the global industry and new patternsof global enterprise competition and cooperation. HTC quickly adapts to a constantly changing environmentand cultivates management talent with an international vision, expecting their excellent managers to becomepresent and future drivers who will continuously lead HTC towards steady growth and development in timesof hardship and challenge. In 2015, leadership-training courses were given to 576 persons.
The company has a series of leadership courses, tailored for supervisors at all levels, to cultivate key leadershipteams. When curricula are planned, in addition to the core HTC values and strategic organizational development
direction, three occupational functions of the company leadership and management are included:e-learning Platform
The HTC e-Learning platform gives employees a range of learning tools and more flexibility to study according
to their needs and without the limitations of time, location, and the associated stress. They can also watch andlisten to recordings made by experts or browse the rich collection of books in the library online. It is very easy
and convenient to learn professional and occupational skills without unnecessary interruption.

Mobile Library
HTC helps staff develop good reading habits mainly by the provision of a wide range of reading activities and arich collection of library resources; employees can enjoy a rich literary atmosphere and reading environment.
Electronic magazine services are also made available for employees so they can view and read the current
editions on their computers or mobile phones anytime anywhere. he number of people subscribing to ourelectronic magazine reached 11,363 in 2015. We continue holding reading workshops for writers to share the
new knowledge and life experience they put into their books.
In 2015, we initiated the free request for back issues of magazines program, which also involves an exchangeof books. Old books and magazines are given new life and the HTC reading culture has also been given a boost.
Starting from the fourth quarter of that year, we introduced “a quarterly selection of good books,” providing
excerpts of the best parts of books to allow the readers to quickly become members of the informed reading
public.

Training and Performance Integration
The HTC training and development system is closely linked to performance management. Each employee sets
their own performance goal at the start of the year. They can provide updates about progress any time overthe following months. However, at mid-year and at the end of the year their performance is evaluated by an
immediate superior, in terms of how much of their set goal has been achieved. On the basis of this evaluation,
they are required to set a goal for the next year as well as a focus for learning and development.
HTC is expanding and moving steadily forwards. We hope that our employees will grow with the company.
This is why we enforce the performance evaluation system and hope that every employee has a very clear
career goal that will both improve their own job performance and coincide with company business policy forthe achievement of better performance. This mechanism allows employees to become more proficient at theirwork through their own efforts to create a brighter future for both themselves and the company.

083

Employee Relations

HTC 2015 CSR Report 084

Legal Training
In the HTC code of conduct for employees, the conditions of a confidentiality agreement are laid downwith respect to the disclosure of company assets including information, personal data and its protection,
the employees, their immediate relatives and customers, business etiquette in dealing with contractors,
business travel expenses, conflicts of interest, part-time jobs outside the company, dishonest behavior suchas insider trading and so on. It also specifies penalties for such behavior and violations of company rules.
We also maintain an e-mail address to which employees may send complaints directly to management.
In addition, HTC also offers relevant courses during the induction training of new recruits. There arealso case studies available in e-learning courses. To prevent insider trading, we invite legal experts togive special training to company management personnel. We have also set up regulations to control
all donations made in the company name. The on-line course on the code of conduct highlights theimportance of honesty and morality and this is very important for the newly recruited employees whojoin the company every year.

Yang Li-chou

Liu Hsuan

Hsu Yu-jen and HTC employee-turned speakers

Due to the criminal disclosure of business secrets in 2013, we have arranged anti-insider trading andprevention and anti-corruption education and training for all mid-level and high-level executives; also,
the following courses are promoted for the training of new employees
Confidentiality and anti-insider trading – Introduction of confidentiality agreement and anti-insider
trading propaganda
Intellectual property rights & company patent application/ reward policy
US patent litigation
We have addressed the importance of integrity and ethics in the annual HTC Code of Conduct courses,
and 621 employees completed the training courses in 2015.
HTC legal training in 2015
Number ofparticipants

Course Contents

Coursehours

IDL new employee legal training - confidentiality and anti-insider trading621

35 min.

IDL new employees legal training – intellectual property rights

621

40 min.

IDL new employees legal training – US patent litigation

621

35 min.
LectureEnglish Leadership Resource and On-job Training Grants
As an international brand, HTC provided “Online English Learning” to encourage staff to learn continuously
and spontaneously. The choice of sessions, the grade of difficulty and the learning hours and objectives aredesigned to match the abilities of students at different competence levels. We also offer on-job graduate study
grants and a scholarship program to encourage employees to continuously absorb professional knowledge
and match their studies to their work for further growth. In 2015, online English language training course
participants numbered 480 persons and NT$487,500 in grants was paid by HTC.
In addition, HTC encourages employees to continue to absorb professional knowledge and to match theirstudy program to their work to ensure growth. We have an on-the-job graduate study grants program and 85
employees have taken advantage of this since 2011.
“Online English Learning” grants paid by HTC in 2015
Number of participants

Total training hours

Total grants paid by HTC (NT$)

480

15,170487,500

085

Employee Relations

Special training courses
Sense Academy and Thinker ForumHTC invites experts and specialists in different fields from around the world to give talks and hold seminars
with the employees. They share what they know about the development trends in their own industry, thenewest technologies, and blueprints for future technology. This integration of brands, aesthetics, knowledge
and culture related to humanistic arts, will help our employees grasp new knowledge and expand theirperspective, while cultivating their own sense of beauty, to reach a balance between sense and sensibility.

“Coffee with officers” experience sharing in the afternoon
The “Coffee with officers” afternoon events, which allowed experience sharing and discussions withmanagement, has been put together since November 2014. These gatherings were diversified on various
themes so that staff from the different departments had the opportunity to take active part. Staff could also
talk with the different executives and hear their ideas about work and leadership, even their life experiences
and the secret ingredients of success.

HTC 2015 CSR Report 086

Sustainability
Agenda ___HTC
Sustainable
AgendaSustainable
Environment

Sustainable
DesignEnergy and climate change
Energy management system
Green facility
Water resource management

As a global leader in the innovative designof mobile phones, HTC recognizes that byminimizing the environmental impact of ourmanufacturing processes we, and our vast
number of consumers, can make a contribution
to the well being of our planet.
To this end, HTC has set up a “Sustainable
Agenda” from five aspects: “a sustainable
environment, design, processes, packing,and product,” we have put this concept ofenvironmental sustainability into action, havepositive control, and are reducing the impact of
our operations on the natural environment.

Eco-design
Eliminating the use ofhazardous substances

Sustainable
Processes

Sustainable
Packing

Sustainable
Product

Environment safety and healthManagement of hazardous
substances
Management of waste andchemicals

Green packaging material

Product Carbon
FootprintA quick look at HTC management of energy and climate change

Sustainable Environment

As a response to the issue of greenhouse gases and global warming, HTC implemented the ISO
14604-1 Greenhouse Gases Emissions Inventory Program and has an ISO 14604-1 Greenhouse Gases
Emissions Verification Opinion Statement for the planning of energy strategy and action.
All the HTC plants have been included in the Taiwan organizational boundary area and have been
subject to inspection since 2009.
In 2010, the HTC plants in China were also included in the scope of inspection and disclosure andexternal verification was launched. Electric power was found to be the main source of emission.
After joining the Carbon Disclosure Project (CDP), HTC is obliged to regularly report its plans,
systems, and achievements regarding carbon risk and carbon management.
The ISO 50001 Energy Management System, based on ISO 14064-1 standards, is used to check thegreenhouse gas emissions and emissions source of a company. With the help of energy management
systems, the ISO 50001 can achieve energy management according to plan. HTC has implemented
the system since 2011 in an effort to reach the goal of sustainable management.

Green Management Vision and Mid-term and Long-term Planning
HTC will reach their short-, medium-, and long-term goals of sustainable development by the performance,
management mechanism promotion and system establishment, as well as by cooperation with society andother enterprises in environmental protection.
Green Management Vision and Mid-term and Long-term Planning

Response to Climate Change
HTC smart mobile devices help reduce the transportation and travel previously needed for communication,and consequently the carbon footprint of the user as well. New combinations and new patterns of operation,
livelihood, work, study, and travel involving smart mobile devices help users save energy and reducecarbon emission.
To this end, we have devised a dual-aspect strategy composed of “adopting an energy management system”
and “performing energy-saving practice.” On one hand we strive for optimizing our management system
to reduce energy consumption, and on the other we use energy-saving technology to improve the energy
efficiency of our products.
By positive management of the supply chain and refining the green design of its products, HTC tries tominimize hazardous substances in its products and reduce the use of packaging material. It is our mission
to be a positive influence and help the users of our mobile devices around the world have a smarter work andlifestyle with less carbon.

2012-20152014 Taoyuan TYS LEEDAwards—Gold Award
2014 Enterprise
Environmental Protection
Awards—Silver Award
2014 Taoyuan Energy
Conservation and Carbon
Reduction Action Label2015 PAS Taiwan Corporate
Sustainability Awards
2015 UL Environment
Certificate—Platinum Award
2015 Helped safety andhealth program members
pass ISO 14001-related
verification

2016-20202016 Applied for clean production2016 Cooperated withgovernment agencies or schools
to promote environmental
protection2016 Continued helping safety
and health program members
obtain ISO 14001-related
verification

2021-2025
To create low-carbon living
circles through corporate
environmental protection
concepts based on HTC
experience
To help contractors obtainenergy conservation andcarbon reduction action
labels2016 Continued participation
in Enterprise Environmental
Protection Awards
2016 Received Customer
Sustainable Development Award
2017 To apply for Energy
Conservation and Carbon
Reduction Action Label2018 To acquire Water Footprint
Third-Party Verification

089

Sustainable Agenda

HTC 2015 CSR Report 090

New Taipei City’s Environmental Impact Assessment
in Development Activities
In 2012, we participated in the New Taipei City’s Environmental Impact Assessment in
Development Activities and won a Gold Award, the highest honor. HTC’s Taipei Headquarters
building, which became operational on June, 2012, stood out among all the competing projects
by professional construction teams. HTC was the only company to win the award. The HTC
Taipei Headquarters building, is an internationally verified gold-class green building thatsaves energy around the clock and provides an excellent working environment.

Energy-saving and carbon reduction

Energy consumption analysis

HTC introduced an energy management system as per ISO 50001 to gain a full picture of internal energy
use. The applicable regulatory requirements and energy benchmarks were implemented and HTC set energy
performance indicators, and short-, middle-, and long-term improvement goals. A progressive action plan was
set up to eliminate the waste of energy caused by bad habits or incorrect information.

GHG Emission and Reduction
HTC has been promoting greenhouse gas emissions inventory and disclosure for office buildings and factories
in Taiwan since 2009. It has passed ISO 14604-1 Third-Party Verification. The inventory boundary covers not
only the office buildings in Taoyuan and Taipei but also the branch offices in Hsinchu and Tainan.
Total greenhouse gas emission by HTC was 42,489.88 t-CO2e in 2015. Inventory results indicated that electric
power was HTC’s main emissions source. Category 1 emissions refer to greenhouse gases. In the future, wewill extend greenhouse gas emission investigation and external verification scope to include control oversubsidiaries, including comprehensive statistics, and the monitoring of greenhouse gas emissions to improve
the overall energy use efficiency and create better energy revenue and ecological benefit in accordance with
the implementation of the ISO 50001 Energy Management System and effective energy-saving measures.

Year

Unit

2013 (TW+KQ)

2014 (TW+KQ)

2015 (TW)

Total Emission Scope 1

t-CO2e5,692.840

5,163.72

2,346.95

Total Emission Scope 2

t-CO2e68,623.959

60,013.32

40,142.93

Eco-Efficiency Value

NT$

2.74

2.88

2.86

Total Emission Scope 3

t-CO2e202.8763

446.4351

Emission: CH4

t-CO2e2,004.96

2,233.8032

1,171.7370

Emission: N20

t-CO2e3.10

2.94891.8600Emission: HFCs

t-CO2e1,127.10

16.3000

418.7725

Emission coefficients

Global warming potential(GWP value)

In 2015, the electric power factor of the HTC buildings was 99.01% on average and the total savings amounted
to NT$7,136,238. Taipei headquarters outperformed the others by means of power factor adjustment,
refrigeration and air-conditioning cost saving, and reached a final electric power factor of 100%.

1. Power Conversion CO2 equivalent emissions are calculated in accordance with thepower emission coefficient of the year announced by the Bureau of Energy.
2. GHG Emission Coefficient Table, version 6.0.2
3. Shanghai plant power emissions coefficient is in compliance with the 2014 China
regional power grid baseline emission factor announcement.
IPCC 1995 5th Assessment Report.

Note: 1. Eco-efficiency value (revenue generated from each unit of greenhouse gas emission) = Operating revenue (in millions) / greenhouse gas emission
2. Category 3 emissions originate from gases emitted by shuttle buses for employees and vehicles for the transportation of domestic waste.
3. Category 3 emissions in 2015 were greater than those in 2014 because vehicles carrying domestic waste drove for longer distances.

Sustainable Agenda

Unit2013 (TW+KQ)

2014 (TW+KQ)

2015 (TW)Electricity

1,000 kWh/Year

117,748.69

104,330.64

62,276.8

Operating revenue

Million(NT$)

203,403

187,911

121,600

Eco-efficiency value

NT$

1.73

1.8

1.95

Note: The eco-efficiency value (revenue generated from each electricity consumption unit) = Operating revenue (millions) / electricity consumption

We discovered problems through measuring data and comparing them to those in the data bank. We thenworked out energy saving strategy through energy conservation analysis. There were design problems,
operation problems and management problems. We traced the problems back to the original system for
improvement and assessment of cost-effectiveness. We managed to reach the energy saving goal. The energy
use intensity (EUI) in 2015 was only 88.75kwh/m2.
Building

Year

Unit

TPE1

UI (Month/Avg)

TPE2

UI (Month/Avg)

2010

28.85

2011

25.40

2012

2013

2014

2015

8.60

7.72

7.51

7.4

21.57

23.97

22.57

22.1

The Taipei Headquarters building was designed to save energy and accommodate high-performanceequipment, such as LED lights, ice storage air conditioning systems, elevators with regenerative drives, ande-Tag smart parking management systems. A fully integrated energy management system in the building
manages energy consumption in real time, which enhances efficiency. The carbon reduction of the building
has reached 7,347 tons of CO2 to date, and the EUI is only 88.75kWh/m2.
The Taoyuan Headquarters building achieves energy savings through the improvement of the lighting andair conditioning systems, and the installation of renewable energy equipment such as solar panels. 2015 saw
a reduction of power consumption by 648,187.63 kwh, which translates into a saving of NT$1,898,189.76 and areduction of 337.7058 tons of CO2e.
Note 1: One kwh of power costs NT$2.93.

091

Year

Environmental Indicators

The Taipei headquarters building now has a complete energy management system. There are more than 7,000
real control points in the building and more than 20,000 software control points. The energy consumption of
the building is managed by a completely digitized monitoring system.

HTC GHG Emission
Total Emission

The power used by HTC is mainly electricity and the total consumption from 2010 to 2013 increased withexpansion of the plant area. However, the promotion of energy-saving measures has resulted in a reduction of
the amount of electricity consumed and this reduction continued in 2015.

2. Power coefficient is 0.521.

HTC 2015 CSR Report 092

The use of green energy
To create a low carbon life, we use only green energy, which includes the use of solar panels, eco-cooler air
conditioners, and other low carbon emission sources like electric cars.
Headquarters building has extensive solar panels on the rooftop, which generate power for staircase lighting
systems. The building has generated 49,801.99 kwh electric power so far. As for the Taoyuan Headquarters
building, NT$16.08 million has been spent on installing eco-cooler air conditioners and solar-powered water
heating systems in the dormitories. The solar-powered water heating systems saved NT$3,579,036 for thecompany between 2013 and 2015.
Energy-saving program

Solar panels

Cold air heat pumps for
air conditioning

Electric vehicles andbicyclesDescriptions
Taipei headquarters has solar panels that generate electricity used for lighting the staircases
and basement in 2012.
The dormitory at the Taoyuan Plant was equipped with solar panels in 2014 that cost
NT$20.1million. The power is used to heat shower water for the employees, and saved
NT$1,075,896 in 2015.
Taipei Headquarters are equipped with cold air heat pump systems for shower water for theemployees and other uses.The design concept is to absorb heat from the atmosphere or waterand store it in water through a heat exchanger. The water, after absorbing the heat, raises thetemperature of a hot water tank to provide a great amount of highly efficient and low cost hot
water. The air released during the process becomes the dry cool wind of an air conditioner.
The system can generate hot water, cool air, and cold water at the same time.
Taipei headquarters has installed an ample number of power charging sockets for electricvehicles and bicycles to encourage employees to use low pollution and high-energy efficientmeans of transport.

HTC is practical in its use of renewable energy, which enhances carbon reduction effects and provides amultiple source of energy. Therefore, we have installed solar panels on the rooftop of Hsinhua Dormitory for
the water heating system. Heat generated in this way can be stored in tanks to provide hot water for washingfacilities, which reduces the use of natural gas and carbon emission. The solar-powered equipment that HTC
uses saved 56,436 cubic meters of natural gas in 2015, this translates into a reduction of 106,043 kilograms ofCO2/cubic meter or the amount of carbon absorbed by 5,892 trees.

Energy-Saving Actions
Since large manufacturing centers are where the employees and the equipment consume energy most, we
focus our energy-saving efforts on the energy management of the large manufacturing centers, and carry out
different energy-saving strategies and measures according to the individual states of our respective facilities.
Energy-Saving Efforts

ActionPower Management

T5 and LED power-saving lamps
Switching off lights at night and in the holidays
Swithing off the dispensers in public areas in the holidays
Process optimization and two plants merged

Air-Conditioning
Control

Improvements of AC system
Environmentally friendly coolant and energy- saving high- performance machines

Energy Efficiency

Refined mode settings of refrigerated air dryers
Gearless permanent magnet synchronous motors for elevators

Use Habit

Using both sides of copy paper
Turning lights off

Year

Programme

2015

TY5 chiller air conditioning
system’s iced watertemperature is raised from6˚to 7˚
Mercury street lamps at the
parking lot of the company’s
factory on Taoyin Road havebeen replaced by metal
halide lamps

The main chiller motor in
the air conditioning system
2014- on the third floor of TPE2-1
2015 has been replaced by a newone to conserve energy

093

Sustainable Agenda

Energy-Saving
reducedcarbon emissions

Energy saving and carbon reduction results in 2015

2015

Note: 1. Carbon absorbed by a tree is about 18 kg-CO2e/year. (Environmental Protection Administration, Executive Yuan).
2. Total cubic meters of natural gas saved = average solar-powered heating temperature (℃) — running water temperature (℃) x 1000 Kcal natural gas per ton of water / 8500
Kcal per cubic meter of natural gas x average daily amount (tons) used.
3. One cubic meter of natural gas costs NT$19.06.
4. The carbon emission coefficients of natural gas is calculated in accordance with Version 6.0.2 of the Greenhouse Gases Emissions Management Chart (1.879 kg/cubic meter).

Target

HTC persistently promotes various kinds of energy efficiency management. In
2015, 682,426.87 cubic meters of natural gas, or NT$1,999,511, were saved. The
reduced carbon emissions reached 355.544 t-CO2e.

2015

Energy saving measures
have been taken for the air
conditioning system of thegym restrooms on the firstfloor of Building P

Projected results actual results
energy savings
rateenergy savingsin kwhamountof money saved
energy savings
rateenergy savingsin kwhamountof money saved
energy savings
rateenergy savingsin kwhamountof money saved
energy savings
rateenergy savingsin kwhamountof money saved

Unit

Savings

139,695.00

142,785.00

kWH

72,920.79

74,533.77 Kg CO2e/kWH 20.92%

409,306.35

418,360.05

NT$12,117.00

0.00

kWH

6,325.07

0.00 Kg CO2e/kWH

35,502.81

0.00

NT$

91,022.00

34,239.24

kWH

47,513.48

17,872.88 Kg CO2e/kWH

245,759.40

100,320.97

NT$1,168.00

1,167.00

kWH

609.70609.17 Kg CO2e/kWH

3,422.24

3,419.31

0.00%

5.02%

0.17%

NT$

HTC 2015 CSR Report 094

Year

Programme

2015

Energy-saving measures havebeen taken for the exhaust
windmills of the oil collecting
room on the B2 floor of
Building H.

2015

2015

2015

20142015

20142015

20142015

20142015

20142015

20142015

20142015

Projected results actual results Unit

energy savings
rateenergy savingsin kwhamountof money saved
energy savings
Energy-saving measuresrate
have been taken for theenergy savingsin kwhexhaust system of the sewage
amountreservoir of Building P.
of money saved
The Huafu Dormitory e-cooler energy savings
rate
air conditioning system isshut down in the summer,
energy savingsand hot water is provided byin kwhthe solar-powered system on
Hsinhua Road (from May toamountof money saved
September).
energy savings
Energy-saving measuresrate
have been taken for the air
energy savings
conditioning system of thein kwhrestrooms in the lobby on theamountfirst floor of Building H.
of money saved
The shield for lights above the energy savings
rate
clothes hangers in the clean
energysavings
rooms on the third, fourth, andin kwhfifth floors of front Building
amountTY3 has been removed.
of money saved
energy savings
On/off pull-tabs have beenrate
added to the lighting systems energy savingsin kwhin the production area on theamountseventh floor of Building TY5.
of money saved
energy savingsrate
The 23W spiral bulbs in thesavings
public area of Building P have energy
in kwhbeen replaced by 10W LEDs.
amountof money saved
energy savings
The T8 lamps on the firstrate
floor of Building TY4 haveenergy savings
been replaced by LEDs
in kwh(stockpile items) for energy
amountconservation.
of money saved
energy savings
The T8 lamps on the secondrate
to fifth floors and in the publicenergysavings
area of rear Building TY 3
in kwhhave been replaced by LEDs.
amountof money saved
energy savingsrate
The 163 T8 lamps on the firstenergy savings
floor of 2 Tachih Road, havein kwhbeen replaced by T5 lamps.
amountof money saved
energy savings
The 23W spiral bulbs in theratepublic area and the community energy savingsin kwhgarden of Building TY3 haveamountbeen replaced by 10W LEDs.
of money saved

Savings

5,840.00

5,443.00

kWH

3,048.48

2,841.25 Kg CO2e/kWH

17,111.20

15,947.99

NT$10,706.00

7,975.00

kWH

5,588.53

4,162.95 Kg CO2e/kWH

31,368.58

23,366.75

NT$360,000.00

367,200.00

kWH

187,920.00

191,678.40 Kg CO2e/kWH

1,054,800.00

1,075,896.00

NT$1,168.00

879.00kWH609.70458.84 Kg CO2e/kWH

3,422.24

2,575.47

NT$9,487.00

9,486.75

kWH

4,952.21

4,952.08 Kg CO2e/kWH

27,796.91

27,796.18

NT$

6,115.00

6,115.20

kWH

3,192.03

3,192.14 Kg CO2e/kWH

17,916.95

17,917.53

NT$29,438.00

29,438.76

kWH

15,366.64

15,367.03 Kg CO2e/kWH

86,253.34

86,255.57

NT$

566.40566.40kWH295.66295.66 Kg CO2e/kWH

1,659.55

1,659.55

47,120.00

47,120.00

24,596.64

24,596.64 Kg CO2e/kWH

138,061.60

138,061.60

NT$

19,904.00

19,904.68

kWH

10,389.89

10,390.24 Kg CO2e/kWH

58,318.72

58,320.71

10,106.00

10,106.84

5,275.33

5,275.78 Kg CO2e/kWH

29,610.58

29,613.05

0.80%

1.17%

53.81%

Sustainable Agenda

Fire Safety Indicators
To create a safe environment for employees, HTC turns on exit lights, escape guide lights and emergency lights
all day according to relevant regulations. To enhance efficient use of energy all 8,609 fire safety equipment
lights have been replaced with energy saving products such as LEDs and PL lamps which is very helpful forenergy conservation and carbon reduction.

0.13%

Infrared automatic on/off devices
Where there is less demand for lighting and minor security concern, the lighting system can be converted
to one that turns off automatically after the last occupant leaves a room. Such systems are already in use in
restrooms rooms and can prevent unnecessary waste of energy.

1.39%

Independent pull ring lamps
Install LED pull-tab lights at a height that employees can reach from a sitting positions. Keep promoting such
installation and hold relevant activities to remind employees to turn off lights with a single pull when leaving theirseats. Employees should also remind each other to cultivate the habit of conserving energy and reducing carbon.

0.90%

4.31%

Resource Consumption Statistics in 2015
Green Plant

Unit

City water consumption

degree/year

Waste water

Which river?

NT$

Total city water discharge

TonneskWH

The amountof rainwater recycled

0.08%2013 (TW+KQ)

2014 (TW+KQ)

2015 (TW)

1,413,340

1,133,697

553,732

TW: Dongmen River
TW: Dongmen River+ New Taipei City
+ New Taipei City
dedicated sewer
dedicated sewer Dongmen River+ New Taipei City
KQ: Shanghai City
KQ: Shanghai City dedicated sewer
Bailong Harbor sewage Bailong Harbor sewage
treatment plant
treatment plant
59,44598,999111,755

Liter/year

6,630,400

13,705

12,596,295

Total amountof water recycled/reused

1,000liter/year

160,985

247,349

247,869

Ratio of water recycled/reused to total amount ofwater consumed%/Year

23.76%

21.82%

44.76%

NT$

Total amountof waste recycled

Kg/year3,618,398

2,723,338.5

2,994,625

kWH

Total amountof waste reused

Kg/year

0

0

3,260

Total amountof waste incinerated

Kg/year2,385,210

1,454,435

1,363,849

Waste disposal expenseNT$thousand /year

17,6304,362

5,154.338

Environmental management NT$
and recycling amountthousand /year

257,260

95,71413,086.363

6.90%

2.92%

1.48%

NT$

Note: 1. The money saved through energy conservation is calculated on a basis of the industrial electricity price announced by the Taiwan Power Company: NT$2.93/kWh.
2. The CO2 carbon emission coefficient is calculated on a basis of the 0.521 kg/kWh standard announced by the Bureau of Energy.
3. The effects achieved through the replacement or removal of lamps are figured out through power conversion.
4. The effects achieved through switching off lights at night and in the holidays is calculated through power conversion.
5. The effects achieved through reducing power consumed by water fountains are calculated through time control and power conversion.
6. The effects achieved through controlling air conditioning system temperature is calculated on the basis of saving ration and power conversion standard announced by the
Bureau of Energy.
7. The effects achieved through process optimization and two plants merged is calculated on a base of actual uased amount in the same period of 2013.

095

Energy-saving installation / equipment

Note: Waste materials, as put into statistical data, are divided into categories ranging from plastic, paper, scrap iron, scrap aluminum, scrap galvanized iron, waste edge board, scrap
computer products, waste wood (pallets), miscellaneous types of plastic, scrap parts, kitchen refuse, recycled domestic material and general rubbish.

HTC 2015 CSR Report 096

Green Plant
The factories and offices disclosed in the boundary organization report this year
have been established in industrial and commercial areas after environmental
consideration and evaluation. The relevant environmental protection has been
implemented in compliance with local regulations and internal environmental
policies and specifications that have no significant impact on the local ecosystem
and animal and plant species.

Sewage Treatment
The wastewater generated by our facilities is mainly domestic sewage from washroom and for other cleaninguses and restaurant waste water that contains no process wastewater. We invested 27,760,000 NT dollar inbuilding sewage treatment equipment in 2010 and spent 731,808 NT dollar on operation and maintenance.

However, we still encourage all our plants and offices to go on with their efforts
to beautify the environment. As for the new buildings, we aim to improve theemployee working environment through the introduction of green building design.
During the construction planning of the HTC Taipei headquater and Taoyaun
Plant Building Y5, we set our goals to apply for LEED Gold Certification fromthe US Green Builing Assocaition. We implemented relative requirements inthe project planning, design and construction in accordance with LEED. We also
asked contractors to meet the need of LEED and put into actions during eachpart of the construction.

LEED gold certification

Domestic waste water is discharged into the sewage system, which will not have negative impact on any
neighboring water body. Starting from January 2013, the sewage treatment plant has been able to handle 600
tons of waste water each day, providing enough water for plant watering and toilet flushing without using any
fresh running water.

Water Resource Management
The water source at the HTC facilities is tap water. The production line processes
at our facilities do not use any water, so there is no industrial wastewater
generated. In 2015, the total water consumption of our facilities in Taoyuan cameto 479,234 tons; the output of treated domestic sewage was 366,111 tons. Water
recycled from treated domestic sewage was 247,869 tons, representing 67% of thetotal treated volume. The amount of water recycled was much higher than thegoal of 60% set for the year of 2015.

Water discharge amount, amount of recycled water and average concentration of effluent
biochemical oxygen demand (BOD)
Green
Building Label

Office/Facility Water Use and Water Conservation Measures
Plant

Use in 2015 (Unit: ton)

Taoyuan479,234

To substantiate sewage control, we have implemented daily maintenance and inspection in accordancewith the “Procedures for Sewage System Operation, Repair, and Maintenance.” We abide by all the laws andregulations and the sewage is tested every six months by an institution authorized by the Environmental
Protection Administration. The final test results are published on the Internet and show that the effluent andrecycled water are in full compliance with all the standards.

Year

Unit

2013

2014

2015

Amount of water discharge

Tonnes59,44598,999111,755

Amount of recycled water

Tonnes160,985332,643

247,869

Average concentration of BOD

mg/l

111,755

247,869

15.7

Water Conservation Measures in 2015
67%of the recycled sewage water is used for plant irrigation

Sewage Recycling
The green fields and planted areas inside thefactories are irrigated with recycled sewage
water without increasing the total amountof water consumed.Starting from 2012, HTC
drafted and implemented water conservationplans. The achievement rate was raised to 60%
in 2013, while that for 2014 was the same. The
actual recovery ratio of waste water in 2015 was
69%. As of 2015, 247,869 tons of waste water had
been reclaimed for watering purposes.

097

Sustainable Agenda

Sewage recycling strategy
and effectiveness in 2015
Strategy and effectivenessSewage recycling

Annual target

60%

Recycled water for irrigation (Tonnes)
Sewage water output (Tonnes)
Amount saved (NT$)

247,869
111,755
347,730.40

Actual waste water recycling rate

69%

HTC 2015 CSR Report 098

Rain storage and recycling system
HTC has established a rain storage and recycling system to collect water for flushing toilets and watering
plants. This can help save 60% of domestic running water. In 2015, the Taoyuan plant recycled a total of985,795 liters of wastewater and the Hsintien office recycled 2,421,000 liters for a grand total of 3,406,795
liters of effectively saved water resources.

Environmental policy card

APP Software “Employee Services” and computer screen saver
program promotion environmental information

Water-saving Sanitation Equipment
HTC gives top priority to the use of sanitary equipment with a water-saving label. For example, that with awater-saving label from the Water Resources Agency, Ministry of Economic Affairs, the Water Awareness Label(WaterSense) of the US Environmental Protection Agency, or water-saving equipment tested by the Industrial
Technology Research Institute (ITRI). The faucet device installed with water-saving spiral (Model: SD-103-2)
allows the faucet to reduce the amount of water outflow, a test performed by ITRI showed a 64.4% water saving
and each faucet can save 77 liters of water a day. All the toilets and urinals in the bathrooms should be energy
efficient and have the WaterSense Label of the United States Environmental Protection Agency.
Estimated savings by water-saving faucets
Water-saving faucet

Estimated water saving

Water consumption time at each use (sec)10

Water consumption volume at each use (liter)

0.4

Daily water consumption frequency (time/faucet)

30

Water-saving efficiency (%)

77

HTC aims to reduce paper consumption by 10% per year and bring the use of paper down to an absolute
minimum. By the end of 2015, cumulative savings of 53,930,935 sheets of paper had been achieved by optimal
paper-saving management.
New office machines were put into use in 2014 and we also rented “Fuji Xerox Company” office machines
which were recommended as outstandingly green by the Ministry of Economic Affairs. Electricity and energysavings were improved by 27% and renegotiations with the photocopy suppliers in 2014 resulted in a unified
unit price which would help save $937,735 (19.0%) compared with 2014.
HTC paper-saving performance
2013

2014

2015

Total (Cumulative saving)

14,612,500

13,146,810

9,467,500

53,930,935

Paper saving target

10%

10%

3%

Achievement rate

17%

14%

11%

312,960

150,965

191,960

Paper saving (sheets)

Amount saved(NT$)

099

Sustainable Agenda

New recruits education and training was given to 2,776 employees in 2015. The training material includes theenvironmental protection concept of the plant and a policy card is distributed that can be retrieved easily fromthe corporate identity system.

2. Green Energy Pavilion energy-saving and carbon reduction activities
The annual HTC Family Day event at the Green Pavilion presents the environmental protection and energysaving achievements of headquarters and allows those attending to appreciate both the company’s concept ofenvironmental protection and their efforts through interaction.

Paper Management

Year

HTC continues to promote and enhance environmental protection consciousness and awareness in employees
using a diversified interface. Employees are encouraged to appreciate company efforts towards environmental
protection using clear, convenient and interactive presentation of information.

1. Using a mobile phone APP to share environmental protection philosophy
The HTC Employee Services App installed on employee mobile phones displays a sustainable environmental
protection message each day as a friendly reminder.

64.4%

Average daily water savings (liter)

Environmental Protection Education and Promotion

3. Encourage Employees to Carpool
HTC runs a shuttle bus service on many commuting routes with a daily capacity of 1,380 passengers. Thistransportation arrangement together with car-pooling makes it easy for employees to move to and fromwork. By cutting down on the number of vehicles travelling to and from the plant the amount of greenhousegas emitted, in the form of vehicle exhaust, can be significantly reduced. Fewer vehicles on the road also savecongestion and speeds up the movement of traffic.
Car pooling effectiveness
Daily passenger
capacity

HTC shuttle bus route

Time table

Between Taipei MRT Yuanshan Stationand the HTC Taoyuan plant

Yuanshan to Toayuan

20

Taoyuan to Yuanshan

20

Zhonghe to Taoyuan

20

From Taipei headquaterto Taoyuan plant

Xindian to Taoyuan

440

Taoyuan to Xindian560

From Taoyaun Train Station
to Taoyuan plant

Taoyaun Train Station to Taoyuan plant

140

Taoyaun plant to Taoyuan Train Station

180

From Taipei MRT Chingan Station in Zhonghe
to the HTC Taoyuan plant

HTC 2015 CSR Report100Environment certificate Platinum Rating
TC has received UL Environment certification for the following four mobile
phones, which were all, awarded the highest “Platinum” certification after rigorous
verification procedures.

Sustainable Design● HTC One M9● HTC One A9

Sustainable Design Concept● HTC Desire 526

These products received “Platinum” certificates for the use of non-toxic and environment friendly
materials and no material used in their manufacture originates in conflict mineral regions. High-efficiency
low-power-consumption chargers and the unified global charging plug are used to ensure compatibility
with other mobile phones. The mobile phone surface material has been rigorously tested and contains norestricted heavy metals, PVC, or plasticizer. Product recycling assessment is conducted at an early stageof development and the amount of packaging material used and consumed during packaging has been
reduced. Natural fiber used in packaging is of a kind that grows rapidly and recycled paper is also used. The
ISO environmental management system has been implemented in the manufacturing process.

Materials

PackagingLess use of paper. Only
paper made from fastgrowing trees or recycled
paper is used.

Only environment-friendly
materials that have notbeen found to contain any
controlled heavy metal.

Phone surface
materials

Recycling

Recycling 80% of
reclaimed materials.

High-performance andlow energy consumption
charger with universal
connector.

Charging
connector

No PCV, plasticizer,
and materials frommines in conflict areas

HTC has reduced the consumption of raw material, packaging, and related substances by improved methods
and more efficient management. We have set about optimizing product design by improving energy efficiency,
reducing hazardous substances, refining packaging design, and ensuring product recyclability. We work with
our R&D team, customers, material suppliers, and technical service providers to set up a systematic platformthat ensures smooth communication. We stress innovative thinking and strive to develop sustainable productsthat pose the least threat to the environment.

● HTC Desire 626/626s

Green Marks obtained by HTC
Green MarkBC

Description

Applicable Area

Verified by a third-party verification company(UL) as meeting North American (US andCanada) energy efficiency requirements

Power supply units

Verified by a third-party verification company(UL) as satisfying UL, sustainability standard
for mobile phone, and rated as Platinum.

Mobile phones, accessories(including shipping
packaging)

Verified by a third-party verification company(UL/TUV/ITS) as complying with California
appliance efficiency regulation

Working with RBRC to properly recycle usedbatteries in North America

Sustainable Agenda

systems.

We work diligently to reduce the use of environmentally harmful substances, to increase recyclability, improve
the reuse of resources, and reduce the adverse effects our products have on the environment. HTC’s sustainable
design concept is reflected in three areas: 1) increased energy efficiency, 2) recyclability, 3) reducing hazardous
substances, with the serious intention of making our products really green and competitive.

HTC assesses the sustainability of products by an examination of the entire product life cycle. A complete
life cycle assessment and a detailed analysis of the flow of a product help the R&D team understand all thecomplex environmental factors. Different criteria and measures are applied at each stage of the process,especially at the product development and design stage. Great care is taken to ensure that materials used in
production have low environmental risk and all comply with internationally accepted regulations on banned
substances in accordance with the Precautionary Principle. HTC makes sure that all the mobile devices they
design and manufacture meet the expectations of their consumers and in particular have a very low impact on
the environment.

101

Adoption of the ISO

Manufacturing environment management

Mobile phones, including
Accessories withrechargeable batteries, etc.

Battery

HTC 2015 CSR Report102Electromagnetic Compatibilityhigh-efficiency charging
Among the SAR regulations currently in force, FCC (US) and CE (EU) are the strictest, and all
HTC products satisfy meet these requirements. HTC products also comply with the rules about
electromagnetic interference as issued by all nations, with an EMI value 3dB lower than the criteria of
the FCC and CE.

HTC One M9 with low power consumption in standby mode to achieve
Besides boosting phone’s battery life, we also devoted to save overall
electricity consumption during charging, to fulfill carbon reduction.
Therefore, we consider the efficiency of battery charger, the conversion
efficiency of charging circuit and charging mode of operation system.

Enhancement of Energy Efficiency
An analysis of energy efficiency starts with the raw material used to product the electronic telecommunications
product, its manufacture, life cycle and disposal. The mobile phones raw material carbon footprint is low, as isthat of the manufacturing process as well as usage, when most of the greenhouse gas is emitted. We concentrateon energy saving from the early design and research and development phase. All power supply devices usedfor HTC products must comply with the relevant international energy consumption specifications: US EnergyStar, California Energy Commission, the EU Code of Conduct, the EuP, and Energy Efficiency Certification(EEC) with third-party verification. The power supply devices used for all specific models meet the 0.03W
standby power minimum energy consumption standard.
The HTC R&D team has developed excellent power management modes that allow the phone (depending onuser habit) to automatically enter Standby mode to extend battery life. Some of our phones have an ambient
light sensing function that controls the LCD backlight according to the ambient light level in order to provide a
comfortable reading environment and also to save power.

103

Sustainable Agenda

The HTC One M9 uses a higher energy efficient 1.5amp charger and an
optimized charging program that automatically turns off unnecessaryfunctions during charging. The M9 goes into low power standby mode
automatically to reduce unnecessary power consumption. Constantmeasuring allows the M9 to consume only 0.2W (in the off mode) after
the battery is fully charged and until the power plug is removed. This
reduces power consumption by 16% compared to the M8.

Participation in the Foreign Service Carriers’ Eco-Rating Program
HTC continued to participate in the Eco-rating programs
promoted by several foreign telecommunications companies, andassisted in the “Forum for the Future” to integrate the different
plans of several industries to launch “Eco-rating 2.0” in 2014.
The grading category includes life cycle assessment, producteco-design, and corporate social responsibility. The overall
assessment results are graded between 1 and 5 points. This allows
a consumer to make rapid comparison at the time of purchase andalso encourages the design and manufacture of products in anenvironmentally friendly way.

HTC 2015 CSR Report104

Recyclability
We start a full evaluation of a product for recyclability at an early stage of the R&D process. To dothis we conduct a simulation of disassembly and analyze the material composition of the productand relative recycling rate. In addition, we carry out a series of strategies such as material marking(as per the standards of ISO 11469 and ISO 1043) and component simplification and degree of easeof disassembly. Then feedback is given to the R&D team about any useful and valuable strategies.
Currently, HTC product could meet the present and future requirements for recycling.

Material Recovery Rate Assessment>ABS+PC<

Phone and battery recycling
To properly fulfill their responsibilities as a manufacturer, HTC, which is 100% in line with EU WEEE
requirements, has also promoted the US and Canadian mobile phone recycling program. Old mobile phones,
up to a value of US$499.99, can be traded in to reduce the undue disposal or handling of old mobile phones andthe impact of this upon the environment. A total of 39,200 old mobile phones were recycled in 2015.
Please click on the project page at: http://www.htctradeup.com/
1. HTC also operates an e-mail recovery plan. Used mobile phones, tablet computers, and peripherals can bemailed back to HTC at the expense of HTC. Very few people have taken advantage of this plan, as it seems
that most prefer to receive cash. In 2015 14 devices were recovered through this program.
See project page: http://www.freeurecycle.com/?intcid=footer_recycle
2. HTC also participates in the industrial management program Call2Recycle that is currently implemented
in the United States and Canada. The program provides for the collection and recycling of batteries,
including cell phone lithium-ion batteries, as well as the recycling of cell phones in Canada. We pay a fee
to Call2Recycle for every mobile sold in the United States and Canada. A total of 5.7million kilograms ofmobile phones batteries(about 120,000 mobile phones), was recovered through this program in 2015.
3. HTC participates in the state-run electronic waste program promoted in five states (Connecticut, Maine,
Oregon, Vermont, and Washington).
We pay fees quarterly or annually in an amount equivalent to a percentage of market shares. The recycling
center is operated by the state government and a contract is signed with the recycling company.
4. HTC participated in the Anatel Mexico mobile phone recycling project in 2015, reclaiming used phones
through collection by relevant businesses.
Hearing aid compliance
HTC meets and exceeds the US Federal Communications Commission (FCC) specification for hearing aid
compliance. The FCC requires that at least one third of a company’s mobile phone products be hearing aid
compatible. All the Smartphones sold by the HTC in the US in 2015 were 100% hearing aid compatible.

We consider material recyclability in the selection of all materials and product disassembly and analysis
is carried out by an impartial third-party. All current products such as the HTC One M9 or Desire 526,
allow 80% up material recovery. This significantly exceeds the EU WEEE Directive on the mobile phonematerial recovery standard which is 70%.

HTC One M9

HTC Desire 526

Material recovery rate:

Material recovery rate:

82.9%

82.3%

Positively Cutting Hazardous Substance
HTC unveiled the world’s first mass-produced RoHS-compliant PDA mobile phone. Today we require thatall parts, components, modules, materials, and so on delivered to HTC meet a set of requirements, which areeven stricter. The HTC Substance Control List not only restricts the six substances controlled by RoHS, butalso others restrained by international environmental regulations and customer requirements, for example,
polyvinylchloride (PVC) and Brominated Flame Retardant are prohibited.
In addition, we established a platform for unified management of our entire green supply chain to help our
R&D engineers select green materials that meet international environmental regulations and customer
requirements from the HTC product database in 2006. During the selection of materials in 2015, we replaced
the beryllium copper alloy used for contact points in a mobile phone with other safer materials. Althoughberyllium copper alloy is safe itself, it can produce beryllium oxide during the recycling process that is harmful
to human health. We have thus decided not to use the material in any of our products in the future.

Please click on the hearing aid compliance page at:
http://www.htc.com/us/accessibility/hearing-aid-compatibility/

105

Sustainable Agenda

HTC 2015 CSR Report106Sustainable Manufacturing Process
All our facility management systems comply with the OHSAS18001 standard for Occupational Health and
Safety Management. Every new employee is given complete safety and health educational training upon entry.
We have also published the “ESH Management Manual” and “Safety and Health Rules” which have also beenposted on our Intranet website for employees to consult at any time.

ESH Management
HTC provides and maintains
a safe and healthy working
environment as part of ourenvironmental protection,
safety and health, and energy
management efforts.

If you have any complaints about environment-related problems inside or outside the company, you can makea phone call directly to the environmental safety department for handling department personnel.
The Labor Safety Committee has 21 members, the labor representatives accounted for 1/3 of the total number.
We work out an occupational safety and health plan each year according to the relevant problems that need
to be addressed. The focus is on asking all the people involved to follow occupational safety and healthrules; to identify hazards to lower risks; to set up rules for the labeling of dangerous chemicals and a general
understanding of them; the promotion of occupational safety and health information; and the establishmentof a system to manage contractors. All these measures are aimed at reducing risks.

Appointment of waste and sewage treatment staff
Designated plant
personnel

Mandatory number of
personnel

Waste disposal staff

2

2

Sewage treatment staff

1

1

Certificate and License

HTC ESH Policy
HTC continues to provide safe and healthy working conditions for employees while also continuing
comprehensive environmental protection and efficient energy management. With this fundamental
commitment in mind, we abide by the following basic principles to provide our employees, customers,
suppliers, and contractors with the best quality-working environment that makes an ample contribution tosustainable development.

1. We place equal importance on environmental protection, safety and hygiene and health,production, quality, and energy efficiency.
2. We also place equal importance on the safety and health of our employees, customers,
suppliers, and contractors.
3. We require our employees to comply with regulations and operation standards onenvironmental protection, safety and hygiene and health, and the proper use of energy.
4. We are committed to avoiding foreseeable dangers and we conduct loss control.

HTC is committed to saving water resources, energy, and the reduction of waste. An annual budget provides
for the upgrading of hardware and software. A total of $444 million was spent between 2012 and 2015 tosubstantiate the concept of sustainable development.
Environmental expenditure
Year

Unit

2013

2014

2015

Environmental expense

NT$ Thousand

125,700

131,550

80,743

Green purchasing

NT$ Thousand

17,19910,317302

Total

NT$ Thousand

142,899

132,973

81,045

Note: Due to no new plant construction in 2015, procurement data show a downwards trend.

5. We comply with the requirements set forth in all applicable laws and regulations.
6. We shall use, maintain, and continuously improve our management systems for environmental
protection, safety and hygiene and health, and energy efficiency.

107

Sustainable Agenda

Environmental sanitation agents
To ensure the quality of life and comfort of our employees as well as that of nearby residents, HTC takes
measures against dengue fever and carries out pest and rodent control on a quarterly basis. Standing water
pools near the plant are sprayed to reduce mosquito population density.

HTC 2015 CSR Report108Positively Preventing Occupational Accidents

Perfect Emergency Rescue Measures

HTC has identified the prevention of occupational accidents as a top priority of facility management. By
following the “Occupational Accident Prevention and Self-Inspection Plan,” we prevent occupational
accidents and perform self-inspection to achieve our zero-accident goal.
Our work covered seven aspects in 2015: “Management of Safety and Health,” “Education and Training for
Safety and Health,” “Standard Operating Procedures and Job Safety Analysis,” “Inspections for Safety and
Health,” “Emergency Response,” “Medical Care,” and “Safety and Health Campaign” for the comprehensive
prevention of occupational accidents.
Aspects

MeasuresManagement of Safety
and HealthIf there is any change in the organization or addition of new business units, thishas to be reported to the authorities concerned. Such information ranges fromhazard statistics, hazard investigation analysis, meetings convened by the company
occupational safety and health committee, preventive inspections, and the
management of the entry of contractors into plants.

Education andTraining for Safety
and HealthOpen occupational safety and health-related courses on a regular basis.

Standard Operating
Procedures and Job
Safety Analysis

Set up rules and procedures for operation, maintenance, and work safety. Amend
rules for work safety and health, general knowledge of dangerous materials, and theassessment of risk.

Inspections for Safety
and HealthAll kinds of working environments, cars, equipment, facilities, and fire safety systems
should undergo regular inspection. The items to be checked include organic solventsin working environments, ionizing radiation exposure, and infrared detection.

Emergency Response

Implement an emergency response plan for the year and launch emergency
response drills.

Medical Care

Purchase medical consumables and provide health checks or checks for special healthproblems specific to both new employees and those already on the job. Track andmanage those with unusual results.

Safety and HealthCampaign

We have done everything legally required in response to all government regulations.
We also participate in all kinds of relevant meetings and publish promotional posters,
comics, and slogans. We constantly update information and communicate with
employees over work safety. All these efforts are aimed at improving work efficiency.

We have emergency response plans that will be implemented in the event of an emergency caused by humanerror or natural disaster, such as fire, explosion, typhoon, an accidental leak, mechanical injury, infectious
disease, or an earthquake. The plan involves procedures such as identification of the nature of the emergency,
taking the necessary measures and examination of standard operation procedures after such event. We holdfire drills and personnel evacuation drills on a regular basis. We take all possible action to reduce any impact
on the health and safety of the workers and also try to minimize damage or loss of company property.
A 24-hour emergency rescue Hot Line has been set up as part of a fully comprehensive emergency
notification system.
Sufficient rescue personnel have been lawfully designated and emergency rescue personnel training courses
are held annually.
Seven Automated External Defibrillators (AED) are available at specific places within the company.
Emergency evacuation drills are carried out periodically.
These related measures have been effectively carried out at HTC and the average employee injury frequency
rate (FR) was 0.37 person-time/per million hours worked, average severe injury rate (SR) was 2.78 days/per
million hours worked in 2015. Should the frequency of disability or injury rise higher than 0.36 million person/
million working hours and the severe injury rate be higher than 2 days/per million working hours, our annual
target will have been missed.
In 2015, most occupational injuries were the result of traffic accidents (61 cases) that happened duringcommutes. 14 others were the result of tripping, falling, catch and roll, and incised injuries that occurred
within the facility. Falls are the most frequently reported incident (4 cases), with 28 days of labor lost.
Taiwan plant
2015

Target Result

Injury Frequency Rate (FR)Injury Frequency Rate per Million Hours Worked

Injury Severity Rate (SR)Lost Day Injury Frequency Rate per Million Hours Worked

0.36

0.37

2

2.78

We will promote safety education for employees who commute to and from work in the future and will also
provide them with work safety concepts and necessary training. Warning signs are to be placed in conspicuous
places to reduce the incidence of accidents.
Occupational hazards in Taiwan in 2015Type

Full-time Environmental Safety and Health Personnel Training
Courses
ISO 14001 & OHSAS 18001 & ISO50001 internal auditors
Corporate environmental protection award explanation meeting:Enterprise Environmental Prorection Award Seminar

Number of trainee
23

1

Total training time
138 hours

3 hours

Percentage

Type

Percentage

Cut wound, incised wound, and abrasion

17.65%

Exposure to high or low temperature

3.92%

Pinch wounds, or wounds caused by rotatingmachinery

13.07%

Collision

0.65%

Falling or dropped objects

0.65%

Impact6.54%

Falling or collapsing objects

2.61%

Exposure to, or contact with, harmful substances

3.27%

Puncture wound

0.65%

Tripping

4.58%

In-plant traffic

43.79%

Falling or tumbling

0.65%

Off-plant traffic accidents

0.65%

Note : Occupational hazard rate (number of reported cases divided by total number of workers)

109

Sustainable Agenda

HTC 2015 CSR Report110Injury Frequency Rate (FR)Injury Frequency Rate per Million Hours Worked

Year

2011

2012

2013

2014

2015

Taoyuan

0.21

0.29

0.36

0.47

0.37

Management Target

0.4

0.4

Taiwan:0.4

0.36

0.36

Note: Injury Frequency Rate = Incidence of Lost-Time Injury×1000000/total hours worked

Injury Severity Rate (SR)Lost Day Injury Frequency Rate per Million Hours Worked

Year
TaoyuanManagement Target

2011

2012

2013

2014

2015

1

3

4

15

2.78

1.2

1.2

Taiwan:1.522

Note: Injury Severity Rate=Days Lost for Lost-Time Injury×1000000/Total Hours Worked

GRI Injury Indicators
Incidence Rate (IR)
Year

2011

2012

2013

2014

2015

Taiwan

0.04

0.06

0.07

0.1

0.09

Note: Incidence Rate = Total Incidences / Total Hours Worked × 200,000*(*: adjusted for 50 weeks a year, 40 working hours per week, and per 100 employees)

Occupational Disease Rate (ODR)
Year

2011

2012

2013

2014

2015

Taiwan

0

0

0

0

0

Note: ODR = Occupational Disease Cases / Total Hours Worked × 200,000*(*: adjusted for 50 weeks a year, 40 working hours per week, and per 100 employees)

Day Lost Rate (LDR)
Year

2011

2012

2013

2014

2015

Taiwan

0.14

0.64

0.73

2.99

0.55

Note: LDR = Total Days Lost/ Total Hours Worked × 200,000*(*: adjusted for 50 weeks a year, 40 working hours per week, and per 100 employees)

Absence rate (AR)
Year

2011

2012

2013

2014

2015

0.09

TaiwanNote: AR = (Total Days Lost/Total Days Worked) ×100%
All kinds of leaves are occupational sickness leave if employees injure on duty, therefore personal leave and sick leave days is zero.

111

Sustainable Agenda

HTC 2015 CSR Report112Management of Waste and Hazardous Substances

Waste reduction, recycling, and reuse

The major manufacturing operation at HTC is the assembly of Smartphone, so the only waste is gas produced
by welding, without NOx or SOx emission.
We handle and dispose of waste according to our self-regulated “Process for Removal and Handling Business
Waste,” and practice good resources recycling to ensure cleanliness of the working environment and reduce
environmental impact.
Regarding to management measures, besides entrusting legal disposal authorities to properly dispose thewaste in accordance with the governant policy, we also follow disposal trucks to check and confirm theircleaning status on site from time to time. Regarding to plants, we inspect waste storage and temporary storage
zones through inspection checklist regularly, and request correction for non-compiance within a limited time.
We also establish environmental safety and health self-assessment form and perform audits, to accomplish
effective management and evaluation mechanism.
Measures

Methods

Setup recycling bins and commission manual
sorting of domestic waste.

Setup recycling bins and encourage and propagandize
staff to sort domestic waste. The employees recycled
413,946 kgs of domestic waste in 2015.

Used batteries, light tubes and information
technology objects must be recycled.

We have recycling stations for used batteries and lighttubes available to the employees.

HTC Waste Statistics
Treatment

Unit

2011

2012

2013

2014

2015

RecoveryKg

2,464,345

2,930,592

3,618,398

2,723,338.5

3,037,885

Incineration

Kg

1,802,185

1,522,195

2,385,210

1,454,435

1,257,469

HTC waste reduction strategy involves the reduction of the generation of waste from the source by means ofsorting and advocacy. The reuse of waste is also a priority and is essential for an increase in resource recycling
efficiency. The recyclability of waste that cannot be reused can be improved by physical sorting and can be
stored for later disposal and such output is recorded and regularly published on-line.
We have been taking steps to handle the treatment of waste materials according to type. As an example wecommission contractors to collect and recycle waste trays. In addition a number of other licensed contractors
are employed to recycle other material and much of the waste is purified and turned into industrial raw
material.
Other waste goes through physical classification which increases reusability and the material that is notrecyclable goes to a final destination. We also publish the condition of temporarily stored waste material on
the Internet. Our recycled resources reached 3,037 tons in 2015.
1. The TY5 Building in Taoyuan and the Taipei Headquarters building both meet LEED construction
standards. As much as 23% of the building material used was recycled and 76% of the waste produced in theconstruction process, such as steel shuttering, steel rebar, concrete, and epoxy, was recycled.
2. In the recycling of plastic trays and sponges, we have adopted a source control strategy. Trays and sponges
are now reused on the production line as many times as possible to reduce the waste of material.
Between 2012 and 2015, the money earned or saved by recycling waste rose year by year to reach
NT$13,086,363 by 2015. The waste recycling rate increased from 56.89% in 2011 to 70.72% by 2015 to pass ourlong-term goal of 70%. By 2015 the accumulated savings and earnings from the recycling of waste had reached
NT$54,950,036.
Waste recycling effect and rate
60,000,000

100.00%55,000,000

90.00%

50,000,000

80.00%

45,000,000

70.00%

40,000,000
35,000,000

60.00%

30,000,000

50.00%

25,000,000

40.00%

20,000,000

30.00%

15,000,000

20.00%

10,000,000

10.00%

5,000,000
0Recycling ratio
Accumulated
recycling amount113

Sustainable Agenda

2011

2012

2013

2014

2015

56.89%

62.94%

65.82%

65.20%

70.72%

6,466,984

18,403,308

31,109,190

41,863,673

54,950,036

HTC 2015 CSR Report00.00%

114

Touch Panels and LCD Recycling
Our energy-saving strategy is directed to waste prevention at thesource of its generation. Initially, touch screens that failed final test
were disposed of entirely as waste. Since 2011 the screens have been
separated from the LCDs in a dismantling process and salvageableand good components are returned to production.
We recycled 43,651(0.65 Tonnes) Touch Panels and 356,120(7.12
Tonnes) LCDs in 2015 which amounted to 7.78 tons of electronic waste reduction. This accounts for
NT$318 million. This is truly a win-win reduction of waste at the source and a great economic benefits.

35,000,000

12,000,000

30,000,000

11,000,000

25,000,000

10,000,000

20,000,000

8,000,000

15,000,000

6,000,000

10,000,000

4,000,000

5,000,000

2,000,000

0

2012

2013

2014

2015

Number of waste recycling

2,605,450

2,785,082

2,723,339

3,037,885

the cumulative amountof recycling

2,605,450

5,390,532

8,113,871

11,151,756

0Touch Panel and LCD waste recycling in 2015

Touch Panel:

0.65 tons 92.1%

LCD:

7.12 tons 92.8%

Benefits of Touch Panel and LCD recycling in 2015

356,120
Economic benefits (NT $) 343,193,446
Touch Panel:

43,651

LCD:

Weight of Recycled Material at HTC
Category

Weight (Kg)

Category

Plastic

946,347.4

Waste information products

Paper1,073,540

Waste information products

Waste metal

11,373.76

Miscellaneous plastics

103,542.2

Waste aluminum

3,529

Scrapped components

597,369.4

Waste galvanized iron

218.8

Kitchen waste from restaurants

Waste edge-board

35,683.9Life resources recycled

Weight (Kg)

2,219
43,260381,968
31,978Harmful substances and chemical control
HTC understands that in the green competition between corporations around the world, the active
management of harmful substances and chemicals is the only way to ensure reliability of the manufacturing
process and product compliance with the standards of the different countries and customers. In so doing,
we reduce the legal risks that our products might suffer. Given that international regulations on the use ofchemicals have become stricter, we take the following measures to control the condition of chemicals usedduring the manufacturing of components and parts. These include:

Our response to the government environmental
protection policy and our efforts to promote
environmental protection
According to statistics provided by the Environmental Protection
Administration (EPA), every 30,000 recycled mobile phones can yield
one kilogram of gold, and every 10,000 can produce one kilogram ofsilver. This also saves 220,000 kWh of electrical power, which is thesame amount of power as that used by 57 families in Taiwan overa year, or a reduction of 140 kilograms of CO2 emission. We havetherefore signed a memorandum of understanding (MOU) with the
EPA regarding the recycling of discarded mobile devices.

115

Sustainable Agenda	  1. Specially-assigned employees make an inventory of the chemicals in the plant on a regular basis. They also
have to inspect the chemicals and ascertain their condition.
2. Compressed gas fire extinguishers should contain safe eco-friendly agents. Replace CO2 fire extinguishers
with safe halogen compound fire extinguishers.
3. Emergency lights should be powered by eco-friendly batteries. Replace lead acid batteries with nickelcadmium batteries.
4. Set up regulations for the management of chemical agents for cooling water towers. Choose cleaning
solutions with safety certification.
5. Make sure that suppliers and contractors properly manage the chemicals they sell. The chemical
management that suppliers enforce covers aspects ranging from environmental protection, safety andhealth, to corporate social responsibility. This must include the investigation and auditing of supplierinternal management systems and an assessment of the risk levels.

HTC 2015 CSR Report

116Sustainable Packing
Building up a Green Supply Chain
To effectively reduce the use of hazardous substance in parts and components, we require all our parts
suppliers to pass the HTC green parts verification process, to ensure the parts supplied comply withinternational requirements for environmental protection.
HTC and our supplier partners have jointly established sound analysis, testing and report collection systems.
Through conscious management of our green supply chain, we can ensure that all the materials used in HTC
products and all parts and components are environment friendly as regulated.

Active response to green product certification

HTC mobile phone products are packed using materials that make transportation safe and add aesthetics tothe products upon delivery. We also consider the impact the packaging materials will have on the environment
when they are discarded. The materials we use must be compliable with the regulation, environmental
friendly, and sustainable. In packaging design, consideration is given to the following:
1. Reduction of the amount of material used;
2. The use of biodegradable raw material;
3. Printing with environmental friendly ink (soy ink);
4. The facilitation of shipment;
5. The education of the consumers about recycling packaging material.

All HTC mobile phones are verified by international public certification companies, such as SGS, TUV, andITS. Chemical analysis is carried out to ensure compliance with the EU environmental directives. HTC also
cooperates with their customers in green-related certification plans such as the ULE and ecological scoring
systems and this ensures that all products comply with customer green specifications. Several mobile phones,
including HTC One M9, HTC One M8, HTC One E8, HTC Desire 816, and HTC Desire 510, received a ULE
Platinum certificate in 2014.
In addition, our strategy is to buy environmentally friendly products to substantiate our environmental
protection concept of “recyclable, low pollution, and resource-saving.”

All the packaging materials for HTC products are compliable with the EC directive on packaging (EU94/62/EC) and the US requirement on packaging (Model Toxics in 118 Packaging Legislation of USA). The
printing ink used on the packaging material is low-volatility ink or soy ink certified by the American Soybean
Association. These efforts minimize the impact of our product packaging materials on the environment.

Passed UL specifications through a third-party verification company (UL)with platinum certification
Subject: Mobile phones, accessories (including shipping packaging)
Description: HTC One M9 and HTC One M8 have received Platinum Level, 			
ULE environmental certification

We express the purchase of environmentally friendly products as a priority in our procurement specifications
to firmly integrate the concept into our daily operations.
Purchase amount in 2015 is NT$ 302,568. Between 2011 and 2015, procurement with green product marktotaled NT$ 278.17 million.

All the packing materials we use arehighly-recyclable, and main packing
design is used:

Lightweight
integrated
packaging design
Formed by 65% sugar canebagasse and 35% bamboo
pulp, and is 100% recyclable
and biodegradable.

117

Sustainable Agenda

HTC 2015 CSR Report118

History of HTC “Sustainable Packaging”

Mobile phone packaging box carbon footprint during transportation
Year

VolumeHas been reduced year by year,
one pallet can carry more packs

Transportation

One pallet can carry more
packs, helps reduce freight

WeightHas been reduced, helps toreduce CO2 emission resulting
from transportation

Material

Fast growing materials[sugar cane (bagasse) bamboo]

2009

2011

2012

2013-20142015

Total Weight (g)

170

120

65

80.2

80.2

Transportation Carbon
Footprint (kg CO2 eq)

1.63

1.15

0.62

0.77

0.77

Note: Calculate the distance: from HTC factory gAirport (by air) gcustomer’s Distribution Center

Results

Renewable material; more easily recycled with less CO2 emission

2009

2013/2014

2015

Hero box

M7 BOX/M8 BOX

M9 BOXThe HTC Mobile Phone Box is Recyclable and Biodegradable
HTC has elaborated the energy-saving and power-saving
functions in the colored mobile phone box and manual.

Dimensions
WeightECO
Features183x89x60mm

160x160x28mm

160x160x28mm

170g

95g

81g

Package volume
reduced by 50%

Composed 98% of recyclable
paper and material

Materials is consist with current
fast renewable plants

Soy ink used forprinting

Made at least 75% from fastgrowing bagasse (a sugar cane
product) and bamboo

No lamination in top label

Printed using vegetable-based
ink rather than petroleumbased ink

119

Sustainable Agenda

The HTC mobile phone box is made with environmentallyfriendly materials (65% bagasse and 35% bamboo pulp)
as well as fully recyclable and biodegradable paper.
Furthermore, “Forest Stewardship Council” certified paper,is printed on the box to alert the consumer to the concept ofenvironmental awareness.

Less colors- Top label : from 5
colors to 1 color printing

HTC 2015 CSR Report120

Sustainable ProductIn response to the global warming crisis, HTC constantly looks for ways to reduce the impact and influenceof manufacture, production, and consumption by users, on the environment. The concept of life-cycletime (LCT) is our way of thinking about this and we start with R&D. The R&D engineers are provided withquantified and fully comprehensive green information for the initiation of life-cycle- investigation (LCI) on
the supply chain to establish a database of the key parts and components and their environmental impact.
The HTC product carbon footprint is measured in accordance with ISO 14040 and ISO 14044 standards. It
involves direct data provided by the HTC plants and up-stream suppliers. The data are put into internationallyaccepted life cycle assessment software and databases like SimaPro and Ecoinvent, which are also fed withindirect data. The data, after passing third-party verification, is made public as a carbon footprint report or
Eco Declaration that gives transparent environmentally related product information to the relevant clients.

Plan and action for carbon reduction
The carbon footprint analysis measures the impact of a product on the global climate from the aspect of its totallife cycle starting from the production of raw material, manufacture of the product, its distribution, delivery to
the customer, to its end-of-life disposal. Such analysis finds that the carbon footprint of a smartphone is mostobvious during the mining of the raw materials and the consumer use phases. HTC will spend more effort on
reducing carbon emission during these two phases and worked with eight contractors in 2015 to determine thecarbon footprint of two products.

Product Carbon Footprint Verification

Carbon Footprint Related Plans and Reports over the YearsIn December 2015, the HTC One M9 and the Desire 820 passed verification by a trusted third-party,
TUV Rheinland in Germany, and were given ISO/TS 14067:2013, PAS 2050:2011, ISO 14040:2006, andISO 14044:2006 product carbon footprint and life cycle assessment certificates. This shows that HTC
followed the life-cycle carbon emissions calculation and disclosure procedure all the way from productdesign to manufacture to provide carbon footprint data and service according to the required standards.

HTC has been conducting product environmental impact investigation andanalysis in accordance with life cycle assessment methods since 2010. The
annual action plans are set out below:

International standards for product carbon footprint
The product carbon footprint standard ISO/TS 14067 was announced in May 2013. It specifies theprinciples and guidelines for the calculation and disclosure of life cycle carbon emissions of a productfrom the design phase. It can also serve as the basis for finding out the carbon footprint of various kindsof products and services and has become a global standard for the calculation and communication of the
carbon footprint of a product.
Ratio of HTC One M9 Carbon foortprint

62.5%
6.1%

31.3%

1. We participated in the Product Environmental Information Disclosure
Program of the Industrial Development Bureau MOEA in 2010, andcompleted the Environmental Protection Declaration (EPD) with 19
suppliers.
2. We participated in the Low Carbon Product Design Program of theIndustrial Development Bureau MOEA in 2011, and completed carbon
footprint analysis and low carbon design counseling with 15 major
suppliers.
3. We cooperated with 11 suppliers to complete the ISO/TS14067 productcarbon footprint inspection in 2013.
4. Our main action plan in 2014 is to establish carbon reduction targets andaction programs by providing the major suppliers with detailed life cycle
investigation data analyses.
5. Cooperated with 8 suppiers in 2015, fulfilled two products carbon footprint
inspection.

0.1%

Product Environmental Declaration (EPD) report:
http://environdec.com/en/Detail/?Epd=8226#.Uzpg5PmSxMU
Carbon footprint report:
Resource
extraction

121

Sustainable Agenda

Production

Transport

Usage

End of Life

http://www.htc.com/assets-desktop/images/csr/tw/download/
HTC-One-CFP-report.pdf

HTC 2015 CSR Report122Social Investment
and Contribution ___HTC has long been committed to social careand public welfare, and supports and sponsors
the “HTC Education Foundation” and the“HTC Social Welfare and Charity Foundation.”
HTC advocates humanitarianism and we havedeveloped our company character culture
at a local level. While we continue to pursue
business growth and technical innovation, we
care very much about disadvantaged families,
and give their children opportunities to receive
education. This is a distinctive corporate
culture of which HTC is rightfully proud.

HTC Foundation

VisionEveryone has a good personality. People respect and support each other. Let us make theplanet lovely together.

MissionOur mission is to instill core values of integrity, honesty, care, love, positive thinking, andrespect for natural resources by untiring efforts to educate.

Objectives
1. To encourage the development of good campus culture by influential education projects andthe continuous and systematic encouragement of teachers, parents, and students.
2. To encourage the development of good urban character culture by influential education
projects and urging local communities to work towards this end.
The HTC Foundation focuses on promoting character education by working to help children and youngsters
develop good character by supporting both schools and teachers. We place great importance upon building
up moral character and culture for communities and towns in cooperation with local government, care fordisadvantaged families, providing their children with opportunities to receive education, and raising funds forenvironmental and ecological preservation.
We engage in public interest activities to espouse humanitarianism and contribute to a peaceful andharmonious society. The Foundation plays an important part in community engagement and social services toinstill the core values of integrity, honesty, care, love, positive thinking, and respect for natural resources.
The people in the HTC Foundation believe that “everyone has good personality; mutual respect and support
exists between one individual and another and between groups.” Entrepreneurs are honest and responsible global
citizens; political leaders are capable and willing to strive for the welfare of the people, to help the disadvantaged
and to reduce the continuously widening poverty gap. Countries can all get along with each other. To realize
this belief we urge all leaders to join forces to encourage a “character culture.” Leading by personal example
will influence others to value character in daily life. By good example we can cause others to pass on interest in
culture, aesthetics, art, and an appreciation of the serious need and the details of environmental protection. We
can beautify the environment, preserve the natural landscape and historical sites, respect the natural resourcesthat are shared by us all, and jointly take better care of our wonderful planet.

3. Care for disadvantaged families and the provision of educational opportunities for young
people to give them the knowledge and character that allow them to become contributive
members of the society.

Character Statement
1. To actively and enthusiastically influence others with honesty and good character in both
personal and professional life and to set a good example with our own conduct;
2. TTo protect the environment and to develop a cultural and aesthetic disposition throughreadings; and3. TTo be a world citizen, to make reasonable effort to help the poor and the disadvantaged in
the world, and to encourage people to respect and support one another.
We hope through these actions, people can jointly internalize the core values of integrity,honesty, love, mutual respect, caring for one another, and positive thinking.

The HTC Foundation invested NT$11,692,508 on education in 2015, while HTC Social Welfare and Charity
Foundation spent NT$51,137,639 on charity business.

125

Social Investment and Contribution

HTC 2015 CSR Report126English Character School in Taitung
The HTC Foundation has established character building schools in the English language in Hualien,
Yunlin, and Chiayi. The Taitung English character school was established in 2013. The mission is toassist in the promotion of character education using a series of specially provided programs. Domestic
character is fostered and a civic education curriculum is included that will build both character andEnglish language ability. We hope this can be extended to every corner of Taitung County to build
character and also to teach the students to speak English.

Five-Day “Character Building Family Camp” and Summer Vacation at
the Hualien Character and English Institute
A “Character Building Family Camp” was held by the HTC Foundation and Hualien Characterand English Institute as a joint summer vacation family break. Separate courses were provided forparents and children. That for the parents lasted two days and no lodging was provided. The student’s
course spanned five days and four nights, and lodging were provided. Expenses were paid by the HTC
Foundation and participation was free.
Character Building Family Camp-Parent Session
The content of the student courses was discussed during the parents’ two-day study, and a session
about communications skill entitled “Excellent Life-Expression Skills for Deep Communication” washeld. This introduced several important concepts: the importance of values, image and value, the powerof words, and tips for effective communication. The intention being that participating parents andstudents would continue practicing the character pointers and positive thinking they learned, so thesewould become parts of a character building process in the family.
Character Building Family Camp-Student Session
The 5-day study for the students covered five aspects of behavior: “respect, concentration,honesty, responsibility, and gratitude,” and two attitudes: “positive thinking, and self-confidence.”“Character123” about practical conflict-resolving skills, and 10 English language sessions led by foreignteachers were also included.

Many Blessings Courses
The HTC Education Foundation is committed to the development of character education for young
people. It hopes to shape character through joint efforts by schools, parents, and society. Following theprinciple of “lighting a candle rather than cursing the darkness,” the foundation has established the“Many Blessings Course” for junior and senior high school students. These free courses each last forfive weeks. They include three hours of training and activity per week. The students get the energy tomove forward and make changes inspired by their instructors and volunteers,. They are encouraged to
become leaders who can actively serve the public and use their own power to change the world.

127

Social Investment and Contribution

Planned Development for 2015
Character Education in Schools: Implementation of character building education in
individual school and strengthening character networking:
1. Development of Regional Success Mode – Continuous follow-up of the development of highlighted schools
and help for them in building up a core model for character education.
2. Development of Partnership with Schools – Giving assistance for the integration of character education
schemes according to the development of the school’s core teaching framework.
3. Development of Leadership (Professional) Community of Character Education – Developing a community
by “Hand in Hand” or “Professional Field” means.
4. Strengthening Regional Strategic Alliances – Strengthening character education networking throughintegrated courses or large conferences.
5. Link to other Domestic and Foreign Character Education Resources.

Character Education in Villages and Towns
1. Promoting character learning by way of Character Learning Centers or a Character Academy
Scheduling character sharing monthly meetings, two hours a month;
Cultivating seeded sharing promoters for going to villages and towns to hold character sharing sessions,cultivating character education;
Calling the existing local resources, woman’s associations, community-building groups etc, to work
together;
Organizing book clubs/growth groups for promoting continual learning and growth, currently done in
the form of a “Celebrity Lecture in Character.” By “Character Celebrity Lecture”
2. Inspiring active learning and positive engagement
Enhancing the function of the “Character Committee;”
Cultivating seeded sharing promoters for “Character Sharing Sessions;”
Planning group activities to promote motivation and engagement within groups;
Assisting in producing character websites for towns and villages.
3. Engaging other local organizations
Engaging schools, city councils, farmers’ associations, hospitals, and other companies or businesses.

HTC 2015 CSR Report128

Other Social Engagement Activities
In addition to sponsoring the social work upheld by the HTC Foundation, HTC also positively engages inpublic interest activities through other channels. In 2015, our accomplishments in social works included:

The HTC Family Day Food Fair donates 5% of the takings to charity
A charity food fair was held on HTC Family Day in June 2015, 85 different food vendors took part as well as
the HTC branch of the President Chain Store Corporation. Five percent of the earnings (NT$124,260) were
donated to the Chinese Rock Leadership Association to provide assistance to people affected by the deadly
earthquake in Nepal in 2015. Although rain had been forecast a day before the event a lot of people attended. Itturned out to be a nice cool day, very suitable for a family outing.

Donations of used products to charity 							also promotes environmental protection
HTC charity contributions also promote environmental protection. HTC expresses its concern forcommunities in under-developed countries and remote regions by the collection and donation of goods andmaterials. The recycling of used items is as follows:

Donated to

Accomplishment

Achievement

HTC Industry-university student
cooperation program

Used computers maintenancetraining program

40 cooperative education students

Anders Disability Center in Yuli,
HualienCollection of used clothes forunder-privileged families

23 boxes of used clothes

Hsinchu Northgate Holiness
Christian Church

Donation of 15 used notebook
computers

15 used notebook computers

HTC Dream Come True Programfor children in remote regions

The HTC Family Day Charity
Fair in 2015

Collection of 1,618 articles of clothing andNT$68,121 raised by charity sales

Anders Disability Center

Donation of used items

Collection of 25 boxes of used articles
including, stationery, children’s books, andsummer clothes.

House for Joy Association

Donating used material

Collection of 7 boxes of food, 8 of learning
appliances, and 35 pairs of shoes

The Mustard Seed Mission

Magic trip of used bicycles

40 bicycles

129

Social Investment and Contribution

HTC 2015 CSR Report

130

The HTC Vive VR and cooperation with the Palace Museum

The HTC Child Support ClubThe HTC Vive team visited the National Palace Museum in September 3rd, 2015 where they did Vive 3D scans ofsome of the art collection. Volunteers from HTC’s “Character Formation Club” took the 3D images to Nanchuang
Elementary School, which is in a remote part of Miaoli County, to give the children an opportunity to see someof the Palace Museum collection and the underwater world in virtual reality. The volunteers made a brief
introduction to the development of communication, starting from smoke signals in ancient times to modern
smart phones. They also produced a Tangram set that helped children understand how a mobile phone works.

The HTC Child Support Club was founded in 2006 as a spontaneous association formed by HTC employees. The
members raise money that is donated to the China Children’s Fund (CCF) to support the sponsorship of children
in need. In 2015, 226 HTC employees made donations. The funds raised by the HTC Child Support Club andthe Employee Welfare Committee came to NT$2,194,860, and was used to sponsor 103 children. Among those,
95 were domestic children while 8 of these were from foreign countries, including Guatemala, Indonesia, thePhilippines, Senegal, Sri Lanka, Qirghiz, and Paraguay.

Blood Donations

Dream Project

Seven times every year HTC cooperates with the Hsinchu Blood Center to hold blood donation drives. Manyof our kind-hearted employees have developed the habit of regular blood donation. Every time the mobile
vehicle from the Blood Center comes by our employees all line up to make donations to give back to society.
HTC is recognized by Hsinchu Blood Center as a standing Honorable Blood Donor Group. The personnel of
the Taoyuan and Xindian plants donated 252,500c.c and 97,250c.c of blood in 2015.

HTC takes social welfare and charity as the core spirit in the planning and organization of the Family Day Charity
Fair. The Chinese Rock Leadership Association, Qi Zhi Vocational Training Center, 1919 Chinese Christian Relief
Association and Syin-Lu Social Welfare Foundation were invited to participate in the event. The HTC clubs,
formed and run by employees and cooperating contractors, also answered the call and organized a flea market
for charity sales. In all 1,618 items were collected and sold and the money was donated to the HTC “Dream Come
True Program” for children in remote regions.

Sponsorship of schooling for disadvantaged children

HTC helped get a donation of baseball equipment for the Yuanchen Elementary School in Hualien and also
helped arrange some 3-day tours for students in Mingli and Tayu Elementary Schools in Hualien. The students
were able to visit a zoo and a science museum in the city. They were all exposed to new knowledge and able toexplore several technologies.

For many years, the HTC Foundation has been taking care of disadvantaged, children and providing them withthe opportunity to receive education. The education program highlights continuous learning and HTC plays
an active part in community engagement and social services. HTC cultivates communication with the children
and the community to pass on the core values of integrity, honesty, care, love, positive thinking, and respect for
natural resources.

Community volunteer activity
HTC promoted much community activity in 2015 and many employees joined the New Taipei City community
volunteer service. Some took part in a project to teach senior citizens how to integrate with the younger
generation and young people were encouraged to tolerate and understand the elderly and pass on the new
HTC community care concept.

Donated to

Accomplishment

Achievement

Tapeng Village

Charity event for the elderly.
Learning how to use mobile phones

With the participation of 50
community residents

Taiwan Operation Dawn Addiction
Treatment Village

Donation of three used notebook
computers

Collecting three used computerswith the Kingdom Foundation

Kibbutz Elderly Association

Charity event for the elderly.
Learning how to use mobile phones

With the participation of 25
community residents

400 elementary school and junior highschool students from single-parent
families in remote tribal communities

The 2015 HTC “Let love walk:surprise gifts in a shoebox” activity

Collection of 475 boxes ofgifts for delivery to 27 remotecommunities in the mountains

131

Social Investment and Contribution

Donated to

Accomplishment

Achievement

Ming Li Elementary School

A three-day tour to the Taipei Zoo

Helped 27 students to realize their dreams

Da Yu Elementary School

A three-day tour to National
Taiwan Science Education Center

Helped 53 students to realize their dreams

Wan Ning Elementary School

37 pairs of soccer shoes and backnets for the practice ground

Helped 37 students to realize their dreams

HTC 2015 CSR Report132Assurance Statement

133

Assurance Statement

HTC 2015 CSR Report134

GRI Index
GENERAL STANDARD DISCLOSURES
Indicator

Disclosure Item

Omission
External
and
Assurance
Explanation p.130-131

Page Number

STRATEGY AND ANALYSIS
G4-1

Provide a statement from the most senior decision-maker of theorganization

G4-2

Provide a description of key impacts, risks, and opportunities

G4-23
6-7

●

6

●

ORGANIZATIONAL PROFILE
G4-3

Report the name of the organization

G4-4

Report the primary brands, products, and services

G4-5

Report the location of the organization’s headquarters

G4-6

Report the number of countries where the organization operates, and namesof countries where either the organization has significant operations or thatare specifically relevant to the sustainability topics covered in the report

G4-7

2

●

12, 19

●

3

●

15-16

●

Report the nature of ownership and legal form

17

●

G4-8

Report the markets served(including geographic breakdown, sectors
served, and types of customers and beneficiaries)

15

●

G4-9

Report the scale of the organization

17, 54●G4-10

Report the total number of employees

54

●

G4-11

Report the percentage of total employees covered by collective bargaining
agreements

No union

●

G4-12
G4-13
G4-14

G4-15

G4-16

Describe the organization’s supply chain

14

Report any significant changes during the reporting period regarding theorganization’s size, structure, ownership, or its supply chain

No significant
changes●

Report whether and how the precautionary approach or principle isaddressed by the organization

106-109●

List externally developed economic, environmental and social charters,
principles, or other initiatives to which the organization subscribes or which
it endorses

48

List memberships of associations and national or international advocacy
organizations

Report significant changes from previous reporting periods in the Scopeand Aspect Boundaries

No significant
changes

●

42-43

●

G4-24

Provide a list of stakeholder groups engaged by the organization

G4-25

Report the basis for identification and selection of stakeholders with whomto engage

41

●

G4-26

Report the organization’s approach to stakeholder engagement, including
frequency of engagement by type and by stakeholder group, and an
indication of whether any of the engagement was undertaken specifically as
part of the report preparation process

42-43

●

G4-27

Report key topics and concerns that have been raised through stakeholder
engagement, and how the organization has responded to those key topics
and concerns, including through its reporting. Report the stakeholder
groups that raised each of the key topics and concerns.

42-43

●

3

●

2015

●

Every year●

REPORT PROFILE
G4-28

Reporting period (such as fiscal or calendar year) for information provided

G4-29

Date of most recent previous report

G4-30

Reporting cycle

G4-31

Provide the contact point for questions regarding the report or its contents

2

●

G4-32

Report the ‘in accordance’ option the organization has chosen

2

●

G4-33

Report the organization’s policy and current practice with regard to seeking
external assurance for the report

134

●

G4-34

Report the governance structure of the organization, including committees of
the highest governance body. Identify any committees responsible for decisionmaking on economic, environmental and social impacts

28

●

G4-35

Report the process for delegating authority for economic, environmental
and social topics from the highest governance body to senior executives
and other employees

28

●

G4-36

Report whether the organization has appointed an executive-level position or
positions with responsibility for economic, environmental and social topics,
and whether post holders report directly to the highest governance body

●

G4-37

Report processes for consultation between stakeholders and the highest
governance body on economic, environmental and social topics. If
consultation is delegated, describe to whom and any feedback processes tothe highest governance body.

●

G4-38

Report the composition of the highest governance body and its committees

28

●

G4-39

Report whether the Chair of the highest governance body is also an
executive officer (and, if so, his or her function within the organization’s
management and the reasons for this arrangement)

No

●

G4-40

Report the nomination and selection processes for the highest governancebody and its committees, and the criteria used for nominating and selecting
highest governance body members●●

Please refer toannual reportp.229-231

●

G4-18

Explain the process for defining the report content and the Aspect Boundaries

38-39

●

G4-19

List all the material Aspects identified in the process for defining report content

38

●

G4-20

For each material Aspect, report the Aspect Boundary within the organization

38

●

G4-21

For each material Aspect, report the Aspect Boundary outside the organization

38

●

G4-22

Report the effect of any restatements of information provided in previous
reports, and the reasons for such restatements

No restatements●

GRI Index

Omission
External
and
Assurance
Explanation p.130-131

Page Number

GOVERNANCE

List all entities included in the organization’s consolidated financial
statements or equivalent documents

135

Disclosure ItemSTAKEHOLDER ENGAGEMENT●IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES
G4-17

Indicator●

HTC 2015 CSR Report136SPECIFIC STANDARD DISCLOSURES
Indicator

Disclosure Item

Page Number

Omission
External
and
Assurance
Explanation p.130-131

DMA
andIndicators

Disclosure Item

Report processes for the highest governance body to ensure conflicts ofinterest are avoided and managed. Report whether conflicts of interest are
disclosed to stakeholders

30

Report the highest governance body’s and senior executives’ roles in thedevelopment, approval, and updating of the organization’s purpose, value
or mission statements, strategies, policies, and goals related to economic,
environmental and social impacts

35

G4-43

Report the measures taken to develop and enhance the highest governancebody’s collective knowledge of economic, environmental and social topics

35

●

G4-44

Report the processes for evaluation of the highest governance body’s
performance with respect to governance of economic, environmental andsocial topics. Report whether such evaluation is independent or not, and its
frequency. Report whether such evaluation is a self-assessment.

36

●

G4-45

Report the highest governance body’s role in the identification andmanagement of economic, environmental and social impacts, risks,and opportunities. Include the highest governance body’s role in theimplementation of due diligence processes.

G4-46

Report the highest governance body’s role in reviewing the effectiveness ofthe organization’s risk management processes for economic, environmental
and social topics

35

●

G4-47

Report the frequency of the highest governance body’s review of economic,
environmental and social impacts, risks, and opportunities

38-39

●

MATERIAL ASPECT: INDIRECT ECONOMIC IMPACTS

G4-48

Report the highest committee or position that formally reviews and approve

28●

G4-DMA

G4-49

Report the process for communicating critical concerns to the highest
governance body

28●

G4-EC7

Report the nature and total number of critical concerns that werecommunicated to the highest governance body and the mechanism(s) used
to address and resolve them

G4-EC8

G4-50

●

G4-51

Report the remuneration policies for the highest governance body andsenior executives

●

G4-52

Report the process for determining remuneration. Report whether
remuneration consultants are involved in determining remuneration
and whether they are independent of management. Report any otherrelationships, which the remuneration consultants have with theorganization.

G4-41

G4-42

G4-53

Report how stakeholders’ views are sought and taken into accountregarding remuneration, including the results of votes on remuneration
policies and proposals, if applicable.

CATEGORY: ECONOMIC●
MATERIAL ASPECT: ECONOMIC PERFORMANCE

37

●

●

G4-DMA

29●

Direct economic value generated and distributed

15●

G4-EC2Financial implications and other risks and opportunities for the organization’s
activities due to climate change

33●

G4-EC3Coverage of the organization’s defined benefit plan obligations

60-62, please referto financial report
p.179

●

G4-EC4

Financial assistance received from government

No relevant
assistance

●

60

●

60

●

121

●

Development and impact of infrastructure investments and services
supported

127●

Significant indirect economic impacts, including the extent of impacts

127●

G4-DMA

51●

G4-EC9P52, please refer
Proportion of spending on local suppliers at significant locations of
to financial report
operation
p.42-43●

MATERIAL ASPECT: MARKET PRESENCE

G4-EC5

Ratios of standard entry level wage by gender compared to local minimum
wage at significant locations of operation

MATERIAL ASPECT: PROCUREMENT PRACTICES●CATEGORY: ENVIRONMENTMATERIAL ASPECT: ENERGY
29

●

G4-56

Describe the organization’s values, principles, standards and norms of behavior

18, 65●

G4-57

Report the internal and external mechanisms for seeking advice on ethicaland lawful behavior, and matters related to organizational integrity

30

●

G4-58

Report the internal and external mechanisms for reporting concerns about
unethical or unlawful behavior, and matters related to organizational
integrity, such as escalation through line management, whistleblowing
mechanisms or hotlines.

30●

G4-DMA

89●

G4-EN3

Energy consumption within the organization

90●

G4-EN5

Energy intensity

90●

G4-EN6

Reduction of energy consumption

93-94

●

G4-EN7

Reductions in energy requirement of products and services

104

●

96

●

96

●

MATERIAL ASPECT: WATER
G4-DMA
G4-EN8GRI Index

15

G4-EC1G4-DMAETHICS AND INTEGRITY

137

Omission
External
and
Assurance
Explanation p.130-131

Page Number

Total water withdraw by source

HTC 2015 CSR Report

138

DMA
and
Indicators
G4-EN10Disclosure Item
Percentage and total volume of water recycled and reused

Page Number
97

Omission
External
and
Assurance
Explanation p.130-131●

MATERIAL ASPECT: EMISSIONS
G4-DMA

89●

G4-EN15

Direct greenhouse gas (GHG) emissions (SCOPE 1)

90●

G4-EN16

Energy indirect greenhouse gas (GHG) emissions (SCOPE 2)90●

G4-EN18

Greenhouse gas (GHG) emissions intensity

90●

G4-EN19

Reduction of greenhouse gas (GHG) emissions

93, 94●G4-EN21

NOX, SOX, and other significant air emissions

No emissions

●

DMA
and
Indicators

Disclosure Item

Page Number

Omission
External
and
Assurance
Explanation p.130-131

MATERIAL ASPECT: ENVIRONMENTAL GRIEVANCE MECHANISMS
G4-DMA

100●

G4-EN34

Number of grievances about environmental impacts filed, addressed, andNo relevant issues
resolved through formal grievance mechanisms●

CATEGORY: SOCIAL
SUB-CATEGORY: LABOR PRACTICES AND DECENT WORK

MATERIAL ASPECT: EFFLUENTS AND WASTE
G4-DMA
G4-EN22 Total water discharge by quality and destination
G4-EN23 Total weight of waste by type and disposal methods
G4-EN24 Total number and volume of significant spills

96, 112●97●

112-114●

No relevant issues

●

102

●

MATERIAL ASPECT: EMPLOYMENT
G4-DMA

G4-EN27

Extent of impact mitigation of environmental impacts of products and services

103, 105●

G4-EN28

Percentage of products sold and their packaging materials that are reclaimed
by category

112, 113●

MATERIAL ASPECT: COMPLIANCE
G4-DMA

104

Monetary value of significant fines and total number of significant fines
G4-EN29 and total number of non-monetary sanctions for non-monetary for noncompliance with environmental laws and regulations

No relevant fines

Total number and rates of new employee hires and employee turnover by
age group, gender and region

58●

G4-LA2

Benefits provided to full-time employees that are not provided to temporary
or part time employees, by significant locations of operation

61-62

●

G4-LA3Return to work and retention rates after parental leave, by gender

66

●

60

●

No formal
agreements

●

107

●
●

MATERIAL ASPECT: Labor/Management Relations
G4-DMA

MATERIAL ASPECT: TRANSPORT
G4-DMA

101●

Significant environmental impacts of transporting products and other goods
G4-EN30 and materials for the organization’s operation, and transporting members of
the workforce

101●

G4-EN31

Total environmental protection expenditures and investments by type106●

106, 115●

MATERIAL ASPECT: SUPPLIER ENVIRONMENTAL ASSESSMENT
G4-DMA

52●

Significant actual and potential negative environmental impacts in the
G4-EN33
supply chain and actions taken

53

●

139

GRI Index

Ratio of basic salary and remuneration women to men by employee
category, by significant locations of operation

MATERIAL ASPECT: OCCUPATIONAL HEALTH AND SAFETY
G4-DMA
G4-LA5Percentage of total workforce represented in formal joint managementworker health and safety committees that help monitor and advise on
occupational health and safety programs

106

G4-LA6

Type of injury and rates of injury, occupational diseases, lost days, andabsenteeism, and total number of work-related fatalities, by region and bygender110-111

G4-LA8

Health and safety topics covered in formal agreements with trade unions

Not doingstatisticalanalysis bygender

●No formal
agreements

●

80

●

MATERIAL ASPECT: TRAINING AND EDUCATION
G4-DMA

MATERIAL ASPECT: OVERALL
G4-DMA

G4-LA4●●●G4-LA1

MATERIAL ASPECT: PRODUCTS AND SERVICES
G4-DMA

56

Not doingstatisticalanalysis bygender

G4-LA9Average hours of training per year per employee by gender, and by
employee category82

G4-LA10Programs for skills management and lifelong learning that support thecontinued employability of employees and assist them in managing career
endings

80-81●

G4-LA11Percentage of employees receiving regular performance and careerdevelopment reviews, by gender and by employee category

84(100%)

●

56

●

●

MATERIAL ASPECT: DIVERSITY AND EQUAL OPPORTUNITY
G4-DMAHTC 2015 CSR Report

140

DMA
and
Indicators

Disclosure Item
Composition of governance bodies and breakdown of employees per

G4-LA12 employee category according to gender, age group, minority groupmembership, and other indicators of diversity

Omission
External
and
Assurance
Explanation p.130-131

Page Number

28, 58, 67●

Significant actual and potential negative impacts for labor practices in the
supply chain and actions taken

G4-LA15●53●

G4-LA16

Number of grievances about labor practices filed, addressed, and resolved
No relevant issues
through formal grievance mechanisms●

MATERIAL ASPECT: NON-DISCRIMINATION

Operations and suppliers identified in which the right to exercise freedom of
association and collective bargaining may be violated or at significant risk,
and measures taken to support these rights●

No relevant issues

●

64

●

65

●

●

G4-SO3 corruption and the significant risks identified

30●

G4-SO4 Communication and training on anti-corruption policies and procedures

85●

G4-SO5 Confirmed incidents of corruption and actions taken

30

●

34

●

No relevant issues

●

32

●

No relevant issues

●

102

●

Total number and percentage of operations assessed for risks related toG4-DMA
Total number of legal actions for anti-competitive behavior, anti-trust, and

MATERIAL ASPECT: COMPLIANCE

Monetary value of significant fines and total number of non-monetary

G4-SO8 sanctions for non-compliance with laws and regulations
64

G4-HR5

Operations and suppliers identified as having significant risk for incidents
of child labor, and measures taken to contribute to the effective abolition of No relevant issues
child labor●

G4-DMA

64

G4-HR6

Operations and suppliers identified as having significant risk for incidents offorced or compulsory labor, and measures to contribute to the elimination of No relevant issues
all forms of forced or compulsory labor

SUB-CATEGORY: PRODUCT RESPONSIBILITY
MATERIAL ASPECT: CUSTOMER HEALTH AND SAFETY●

MATERIAL ASPECT: FORCED OR COMPULSORY LABOR

G4-DMA

G4-PR1

Percentage of significant product and service categories for which healthand safety impacts are assessed for improvement

105●

G4-PR2

Total number of incidents of non-compliance with regulations and voluntary
codes concerning the health and safety impacts of products and services No relevant issues
during their life cycle, by type of outcomes●●●

MATERIAL ASPECT: PRODUCT AND SERVICE LABELING

MATERIAL ASPECT: HUMAN RIGHTS ASSESSMENT

G4-HR930

MATERIAL ASPECT: ANTI-CORRUPTION

G4-DMA

G4-DMA

G4-DMA
52

Total number and percentage of operations that have been subject tohuman rights reviews or impact assessments●

G4-SO7 monopoly practices and their outcomes

MATERIAL ASPECT: CHILD LABOR

G4-DMANo relevant issues

G4-HR12 resolved through formal grievance mechanisms

MATERIAL ASPECT: ANTI-COMPETITIVE BEHAVIOR
64

MATERIAL ASPECT: FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING

G4-HR4●●

SUB-CATEGORY: HUMAN RIGHTS

G4-DMA

79

G4-DMA79

Total number of incidents of discrimination and corrective actions taken

Significant actual and potential negative human rights impacts in the supply

G4-HR11 chain and actions taken

141

GRI Index

116

●

●
Type of product and service information required by the organization’s
procedures for product and service information and labeling, andpercentage of significant product and service categories subject to suchinformation requirements

52●

G4-PR3

100%

●

45

●

G4-PR4 codes concerning product and service information and labeling, by type of No relevant issues

●

45

●

G4-PR5

MATERIAL ASPECT: SUPPLIER HUMAN RIGHTS ASSESSMENT
G4-DMA

Omission
External
and
Assurance
Explanation p.130-131

SUB-CATEGORY: SOCIETY

G4-DMA

G4-HR3

Page Number

MATERIAL ASPECT: HUMAN RIGHTS GRIEVANCE MECHANISMS

Number of grievances about human rights impacts filed, addressed, and51

MATERIAL ASPECT: LABOR PRACTICES GRIEVANCE MECHANISMS

G4-DMA

Disclosure Item

G4-DMA

MATERIAL ASPECT: SUPPLIER ASSESSMENT FOR LABOR PRACTICES
G4-DMA

DMA
andIndicators

Total number of incidents of non-compliance with regulations and voluntary
outcomes

Results of surveys measuring customer satisfaction

45

HTC 2015 CSR Report

●

142

DMA
and
Indicators

Disclosure Item

Omission
External
and
Assurance
Explanation p.130-131

Page Number

MATERIAL ASPECT: MARKETING COMMUNICATIONS
G4-DMA

116●

G4-PR6

Sale of banned or disputed products

No relevant issues●

G4-PR7

Total number of incidents of non-compliance with regulations and voluntary
codes concerning marketing communications, including advertising, No relevant issues
promotion, and sponsorship, by type of outcomes●

MATERIAL ASPECT: CUSTOMER PRIVACY
G4-DMA

44

●

44

●

G4-DMA103●

G4-PR9

Monetary value of significant fines for non-compliance with laws and
No relevant issues
regulations concerning the provision and use of products and services●

Total number of substantiated complaints regarding breaches of customer
privacy and losses of customer data

G4-PR8MATERIAL ASPECT: COMPLIANCE

MATERIAL ASPECT: CONFLICT MINERALS
G4-DMA

55

●

18

●

120

●

MATERIAL ASPECT: BRAND MANAGEMENT
G4-DMA

Conflicts of interest are disclosed to stakeholders

MATERIAL ASPECT: CHARACTER EDUCATION
G4-DMA143

GRI Index