Sustainability
Sustainability
Material Topic Identification
TSC conducts significant theme analysis and identification in accordance with GRI Standards. Through the five steps of identification, evaluation, analysis, inspection, and approval, it examines the potential and actual impacts that operational activities may have on the economy, environment, and society/people, and uses this as a basis for planning and adjusting sustainable management strategies.
TSC referenced the domestic and international sustainability-related evaluations and industry indicators, such as Dow Jones Sustainability Indices (DJSI), Carbon Disclosure Project (CDP), Sustainability Accounting Standards Board (SASB), Corporate Sustainability Assessment (CSA), United Nations Sustainable Development Goals (SDGs), industry regulations and norms, issues of concern to benchmark companies in the upstream and downstream, expectations of stakeholders, and opinions of expert consultants in the identification process, identifying 21 actual and potential impacts. In the evaluation stage, the ESG Committee of TSC assesses the significance of the impacts based on their impact and potential level. At the same time, surveys are sent to important stakeholders to understand their level of concern for sustainability issues. After analyzing and ranking the impact assessment results, taking into account stakeholder feedback and industry concerns, six major themes are identified.
The six material topics for 2022 are: customer relationship management, human resource management, climate change mitigation and strategy, employee safety and health, product liability, and environmental pollution prevention.
Material Topic Identification Procedure
Material Topic Matrix
In response to the GRI concept, TSC considers factors such as industry, geographic location, and organization to define the positive and negative impacts of various sustainability issues. Through the concept of risk management, TSC identifies the actual and potential significance of these impacts. The X-axis of the material topic matrix is set to represent the organization’s impact on the economy, environment, and society/people for each issue, with the magnitude of the impact differentiated by numerical values. The Y-axis of the matrix represents stakeholders’ assessment of the likelihood of the issue occurring. A total of six material topics for 2022 have been assessed, as shown in the figure below.
Statistics on Various Aspects of Material Topics
Material Topic Management
Material Topics in 2022
Customer Relationship Management
Explanation of Positive/Negative Impact
[Positive] Customer Relationship Management
Through regular customer meetings organized by the Company’s customer service team, we can understand the actual needs of customers and make immediate improvements to operational plans. This will optimize and enhance the customer experience, as well as increase customer retention rate and loyalty, thereby improving economic performance.
Material Topics in 2022
Human Resource Management
Explanation of Positive/Negative Impact
[Positive] Human Resource Management
Establish an attractive, diverse, and equitable remuneration and benefits system to increase employees’ sense of identity and cohesion towards the Company. Develop diverse recruitment channels to recruit excellent talents to enhance operational efficiency. Meanwhile, enhance employee professional capabilities through a comprehensive talent development and cultivation system, provide appropriate positions for different employee characteristics, and thereby improve employee job satisfaction and operational performance.
Material Topics in 2022
Mitigation and Strategies for Climate Change
Explanation of Positive/Negative Impact
[Positive] Climate Governance and Strategies
Strengthening strategic deployment and the management of climate issues in enterprises (such as increasing the proportion of renewable energy sources) helps to reduce environmental impacts like carbon emissions and waste, mitigate future financial costs such as carbon taxes/fees, and enhance the management measures of climate-related risks through investment. It also helps to lead the development of low-carbon industries and enhance the climate resilience of TSC.
Material Topics in 2022
Employee Safety and Health
Explanation of Positive/Negative Impact
[Negative] Occupational Accidents
The Company’s operational safety regulations are not perfect, resulting in employees encountering occupational accidents and diseases, or chemical hazards, causing disability and harm to employees. As a result, the Company may face compensation and litigation issues.
Material Topics in 2022
Governance – Responsible Products
Explanation of Positive/Negative Impact
[Negative]Quality and Safety Requirements and Inspections
If there are any product safety/quality incidents, there may be related legal proceedings and violations, resulting in litigation costs, compensation, and other economic losses, while also compromising customer health and safety.
Material Topics in 2022
Environmental Pollution Prevention
Explanation of Positive/Negative Impact
[Negative] Environmental Pollution Prevention
Waste, water, and air pollution from plants can have a serious negative impact on the environment. If companies do not have waste and wastewater management or fail to implement air pollution prevention and control regulations and greenhouse gas reduction measures, this may lead to their being required by relevant government agencies to clean up and take responsibility for environmental improvement, which will also affect their reputation and increase operating costs.
Communication with Stakeholders
TSC values and listens to the voices of various stakeholders. Through discussions and reviews within the units and departments under the ESG Committee, we gather information on internal and external groups or individuals that have an impact on or are affected by the Company’s operations. We also reference the five principles of the AA1000 Stakeholder Engagement Standard (SES) to identify eight main stakeholders: suppliers, customers, employees, investors, government, media, the general public, and academic institutions. Through regular and irregular communication with stakeholders, we aim to understand the actual and potential impacts of our operations on stakeholders. This understanding serves as the basis for our future planning of relevant preventive and mitigation actions.
Communication with Stakeholders
Provide TSC products, services, or enterprises and their branch companies that have commercial relationships with TSC.
Issues of Concern
- Responsible Products
- Intellectual Property Protection
- Sustainable Supply Chain Management
- Environmental Pollution Prevention
- Occupational Accidents
Communication Frequency and Channels
- Quarterly: Internal meeting on supplier delivery management capabilities and scheduling flexibility.
- Annually: Written or face to face physical audits, signing relevant agreements on intellectual property protection with suppliers, RBA self-assessment questionnaire.
- Time to time: Communication meetings on intellectual property protection issues for IC design companies, information product promotion activities, informing contractors of hazards before factory construction, and signing occupational safety and health commitment letters.
Communication Achievements in 2022
- Hold at least two information product promotion events.
- Hold meetings with IC design companies to discuss intellectual property protection from time to time.
- The factory held a pre-construction hazard notification education training session with the participation of more than 500 contractors.
- RBA self-assessment questionnaire response rate exceeded 90%.
Understand the customer’s needs, grasp industry trends, and provide professional services.
Issues of Concern
- Customer Privacy Leaks
- Intellectual Property Protection
- Supplier Environmental and Social Assessment
- Customer Relationship Management
- Quality and Safety Requirements and Inspections
- Responsible Products
- Climate Governance and Strategies
- Sound Corporate Governance
溝通頻率及管道 Communication Frequency and Channels
- Annually: Customer Satisfaction Survey
- Time to time: Conduct meetings, business meetings, and product application meetings with customers regarding quality and specification testing. Respond to questionnaires on specific data platforms (such as Ecovadis, CDP, SupplyOn, etc.) according to customer requirements. Conduct RBA assessments and CSR/ESG evaluations/audits according to customer requirements. Communicate with automotive industry customers about ESG-related progress and plans. Coordinate and communicate with customers with their score card and results.
Communication Achievements in 2022
- Conducting annual customer satisfaction survey, with a response rate of 83%.
- Complete three customer evaluation audits.
- During Electronica in Munich, at least 15 business meetings were held with customers to discuss future opportunities.
- Conduct at least 10 meetings regarding existing and emerging market automotive-related products. The content should cover the latest product developments and achievements, as well as listening to customer needs and evaluating trends in the automotive market.
All TSC employees of TSC
Issues of Concern
- Product Services and Innovation
- Brain Drain
- Human Resource Management
- Sound Corporate Governance
- Diversity and Equal Opportunity
- Occupational Accidents
Communication Frequency and Channels
- Weekly: Product Development Meetings
- Quarterly: Independent study courses, production scheduling planning, quality issue communication, cross-functional meetings, senior executive meetings, all-hands meetings, occupational health and safety meetings, labor-management meetings, etc.
- Semiannually: SMART performance goal setting principles training courses workshop
- Every year: Employee annual on-the-job safety and health training, KPI setting.
- The Li-Jie and I-lan Site conduct two fire escape drills and one chemical spill drill annually.
- Time to time: SMART Train the Trainer workshop, job content and occupational competency development meetings, new employee safety and health training, employee interviews.
Commucation Achievements in 2022
- Over 500 people participated in training courses such as SMART workshop and SMART Train The Trainer workshop.
- Over 50 safety and health training sessions have been held, with approximately 300 participants.
Pay attention the investment value of TSC, focusing on the Company’s growth strategy, profitability, shareholder return on investment, and sustainability performance.
Issues of Concern
- Sound Corporate Governance
- Corrupt Behavior
- Product Services and Innovation
Communication Frequency and Channels
- Quarterly: Quarterly financial statements
- Annually: Annual shareholders’ meeting, annual financial statements.
- Time to time: Investor conferences, company website updates on operational performance, major announcements on Market Observation Post System.
Communication Achievements in 2022
- Quarterly financial statements held four times
- Annual shareholders’ meeting held once
- Five investor conferences have been held
The operation of TSC directly or indirectly involves, or is regulated by, the competent authorities.
Issues of Concern
- Environmental Pollution Prevention
- Climate Governance and Strategies
- Occupational Accidents
- Energy Management
- Sound Corporate Governance
Communication Frequency and Channels
- Time to time: Updates on legal compliance matters on the Company website, legal publicity briefings, industrial safety counseling, inspections by the Occupational Safety and Health Administration of the Ministry of Labor, wastewater treatment planning and testing, waste-related audits, energy consumption inspection reports, interaction with government by official documents.
Communication Achievements in 2022
- Conducting over 25 government evaluations or audits
The media plays the role of a bridge between TSC and stakeholders, helping stakeholders openly obtain accurate company information and solidify the Company’s image.
Issues of Concern
- Sustainable Supply Chain Management
- Sound Corporate Governance
- Corrupt Behavior
Communication Frequency and Channels
- Time to time: Investor conferences, face-to-face interviews, phone interviews, company official website, press releases.
Communication Achievements in 2022
- Held five investor conferences.
TSC’s operations can generate positive and negative ESG impacts on the general public.
Issues of Concern
- Social Philanthropy
- Supplier Environmental and Social Assessment
Communication Frequency and Channels
- Quarterly: Donate invoices to Genesis Social Welfare Foundation
- Time to time: Disaster relief donations, lunch and miscellaneous fees assistance for impoverished students, blood donation charity events
Communication Achievements in 2022
- Invoice Collection Campaign
- Blood drives were held at the Li-Je Site and I-lan Site, and a total of 118 bags of blood were donated.
Research institutions collaborate with TSC to develop advanced technologies and applications, assisting industry-academia cooperation in innovative research and development to enhance market competitiveness.
Issues of Concern
- Human Resource Management
- Sound Corporate Governance
Communication Frequency and Channels
- Time to time: Recruitment orientation, Industry-Academia Cooperation Meeting
- Annually: Governance and Training of Board of Directors
Communication Achievements in 2022
- Collaboration and exchange activities were held with colleges and universities, with over 150 participants.
- Held three recruitment orientations, conduct face-to-face recruitment and recruit interns.
