Implementing Unit and Policy
In March 2022, the Board of Directors approved the establishment of the Sustainable Development Committee. The Chairman and Vice Chairman serve as Chief Commissioners, while the General Manager and CEO act as Deputy Chief Commissioners. The Corporate Governance Officer assumes the role of Executive Secretary, and committee members are appointed from internal management personnel. In accordance with Article 27 of the Company's Corporate Governance Best Practice Principles, the committee has formulated its organizational charter, which outlines the responsibilities and authority of its members.
The committee serves as an integrated, cross-departmental communication platform, identifying key sustainability issues relevant to the company’s operations and stakeholders. It formulates corresponding strategies and work plans, implements annual initiatives, and tracks progress to ensure sustainability strategies are effectively embedded in daily operations.
On March 8, 2024, the Sustainable Development Committee submitted a report on ESG short-, medium-, and long-term target setting to the Board of Directors for approval.
The Board is responsible for assessing the feasibility of these targets and urging management to make adjustments as necessary.
The company’s risk assessment scope primarily covers its operations, including Zhongli Plant 1, Guanyin Plant 2, and Guanyin Plant 3.
Following the materiality principle outlined in the Sustainability Report, the committee analyzes sustainability-related issues by engaging with internal and external stakeholders, consolidating departmental evaluations, and identifying key ESG topics. Based on this assessment, it establishes risk management policies and concrete action plans to effectively identify, measure, monitor, and mitigate sustainability-related risks.
Based on the assessed risks, relevant risk management policies or strategies are formulated as follows:
| Material Topics | Risk Assessment Items | Description |
|---|---|---|
| Environment | Environmental Impact and Management |
1. Our company has implemented the ISO 14001 Environmental Management System and ISO 45001 Occupational Health and Safety Management System, integrating environmental and safety considerations into our business operations and production processes. This helps improve management and process technology, providing a better and safer working environment for all employees, reducing environmental and safety risks, enhancing production efficiency, ensuring green product compliance, reducing waste generation, increasing resource recycling, and minimizing pollution and resource waste. We are committed to green design development and contributing to an environmentally friendly planet, achieving the goal of sustainable corporate developmen
2. In 2017, we obtained the ISO 14001 Environmental Management System (2015 version) certification, and in 2019, all three of our factories successfully transitioned from the OHSAS 18001 Occupational Health and Safety Management to the new international ISO 45001 standard, obtaining certification. This is in response to the latest trends, and we are committed to continuous improvement through systematic management to enhance effectiveness. 3. Since 2009, we have been promoting energy-saving and carbon-reduction activities to contribute to a greener Earth. We established a supplier energy-saving and carbon-reduction dissemination and coaching system, implemented various improvements, and were recognized as an excellent energy-saving and carbon-reduction manufacturer by the Industrial Development Bureau. In 2012, we became the first company in the power industry to pass product carbon footprint verification. Additionally, in 2013, we began building an energy management system, and in January 2014, we became the first company in the power industry to pass the ISO 50001 Energy Management System certification. 4. We conduct greenhouse gas inventories, track water usage, and measure the total weight of waste within the plant, with the results disclosed on the company's website. The company has established an energy management system and passed third-party verification. Through systematic management and goal-setting, we are driving the company-wide energy-saving and carbon-reduction target of reducing electricity consumption by 1%. In 2023, the Zhongli Plant achieved an electricity savings rate of 16.00%, the Guanyin No. 2 Plant achieved 24.7%, and the Guanyin No. 3 Plant achieved 16.59%, all showing excellent performance. |
| Social | Occupational Safety |
1. The company implements planned environmental monitoring and equipment maintenance, establishing an EHS (Environment, Health, and Safety) information platform website. The goal is to promote ISO 45001, ISO 14001, and ISO 50001 management systems focused on safety, health, and environmental protection.
2. The procurement operation standards stipulate that subcontractors must comply with ISO and RoHS regulations. The same RoHS management of the six hazardous substances' prohibition/limitation is enforced according to the purchasing specifications, ensuring proper implementation. The 1P2036 subcontractor safety and health management operations require subcontractors to implement effective safety and health measures through work permit management, safety and health training, organizational meetings, and safety inspections, aiming to reduce accidental incidents for both the company and subcontractors. |
| Product Safety |
1. Products are designed according to the regulations of each country and can only be sold after passing the relevant certifications.
2. Our company's products are not classified as equipment and products regulated by the ROHS Directive. Only a few repair parts after equipment operation are subject to restrictions on ROHS hazardous substances, so the impact on our financial and business operations is minimal. |
|
| Corporate Governance | Socioeconomics and Legal Compliance |
1. Implement internal controls to ensure that all personnel and operations of the company strictly adhere to relevant laws and regulations.
2. The company has established the "Fortune Trademark Management Regulations" to protect the brand value in the global market, and self-imposes the correct and continuous use of registered trademarks. |
| Strengthen the Functions of the Board of Directors |
1. Plan relevant training topics for the board members.
2. Provide directors with Directors' Liability Insurance to protect them in case of litigation or claims. |
|
| Stakeholder Communication |
1. To understand the issues of concern for stakeholders and determine the scope and impact of these issues, the company distributes the "Stakeholder Concern Issues Survey" and the "Impact Degree of Concern Issues on ESG Survey" to stakeholders for completion. After compiling the survey results, the Sustainability Development Committee, based on internal considerations, industry conditions, supply chain practices, and external consultant recommendations, assesses the impact degree of these concern issues on the economy, environment, and society. Finally, the identified material topics are included in this report for information disclosure, providing stakeholders with the necessary information for evaluation and decision-making.
2. A dedicated Stakeholder Section is established on the official website, providing a visitor message function for communication and contact with stakeholders. |
Corporate Social Responsibility (CSR) Code of Practice
Article 1: In order to implement corporate governance and fulfill corporate social responsibility, the company shall consider the development trends of corporate social responsibility both domestically and internationally, and establish the Corporate Social Responsibility Practice Code to manage its economic, environmental, and social risks and impacts.
Article 2: This Code applies to Fortune Electric and encompasses the overall operations of the company and its affiliated group enterprises. While engaging in business operations, the company should actively practice corporate social responsibility in line with international trends, enhance national economic contributions, improve the quality of life for employees, communities, and society, and promote a competitive advantage based on corporate responsibility.
Article 3: In fulfilling its corporate social responsibility, the company should pay attention to the interests of stakeholders, and while pursuing sustainable operations and profitability, emphasize factors related to the environment, society, and corporate governance. These factors should be incorporated into the company's management policies and operational activities. The company should also conduct risk assessments on environmental, social, and corporate governance issues related to its operations, based on the principle of materiality, and establish relevant risk management policies or strategies.
Article 4: The company should practice corporate social responsibility according to the following principles:
- 1. Implement corporate governance.
- 2. Develop a sustainable environment.
- 3. Maintain social welfare.
- 4. Strengthen the disclosure of corporate social responsibility information.
- 5. Protect the rights and interests of stakeholders.
The company's corporate social responsibility commitment: Our company adheres to the Fortune mission of "Ensuring the safety of employees, customers, shareholders, and society." We are dedicated to corporate governance and integrity in business, expanding green energy initiatives, fulfilling corporate social responsibility, and achieving environmental sustainability.
Article 5: The company shall, based on the trends of corporate social responsibility both domestically and internationally, the relevance to its core business, and the impact of the company's operations and its group enterprises on stakeholders, formulate corporate social responsibility policies, systems, or related management guidelines and specific implementation plans. These plans shall be approved by the Board of Directors and reported to the Shareholders' Meeting.
When shareholders propose resolutions related to corporate social responsibility, the company's board of directors should carefully consider whether to include them as agenda items for the shareholders' meeting.
Article 6: The company shall adhere to the Corporate Governance Best Practice Principles, the Code of Integrity Management, and the Employee Ethical Evaluation Guidelines, establishing an effective governance framework to strengthen corporate governance.
Article 7: The company's directors shall exercise the duty of care of a good manager, oversee the implementation of corporate social responsibility, and regularly review its effectiveness and continuous improvement to ensure the fulfillment of the corporate social responsibility policy. The company's board of directors, when overseeing the company's fulfillment of corporate social responsibility, shall include the following matters:
1. Propose the mission or vision of corporate social responsibility and establish corporate social responsibility policies, systems, or related management guidelines.
2. Integrate corporate social responsibility into the company’s operational activities and development direction, and approve specific implementation plans for corporate social responsibility.
3. Ensure the timeliness and accuracy of corporate social responsibility-related information disclosure.
The company may authorize senior management to handle economic, environmental, and social issues arising from its operational activities, with regular reports to the board of directors on the progress. The operational procedures and personnel responsible for these tasks should be clearly defined.
Article 8: The company shall regularly conduct training on fulfilling corporate social responsibility, including the promotion of the matters mentioned in the second paragraph of the previous article.
All employees of the company and its group enterprises should adhere to the "Four Workplace Challenges" and implement the corporate culture of "Integrity, Fairness, Credibility, Friendship, and Mutual Benefits" to fulfill corporate governance and corporate social responsibilit
Article 9: To strengthen the management of corporate social responsibility, the company connects with the founder's "Taipei City Xu Xianliang Social Welfare Foundation" and establishes the "Fortune Electric Taoyuan Factory Volunteer Committee," which is responsible for proposing and implementing the company's corporate social responsibility policies, systems, related management guidelines, and specific implementation plans.
The company shall establish a reasonable compensation policy to ensure that the salary planning aligns with organizational strategic goals and the interests of stakeholders.
The employee performance evaluation system should be integrated with the corporate social responsibility policy and establish a clear and effective reward and disciplinary system.
Article 10: The company shall respect the rights and interests of stakeholders, identify the stakeholders of the company, and through appropriate communication channels on the company website, understand the reasonable expectations and needs of stakeholders, and respond appropriately to the important corporate social responsibility issues they are concerned about.
Article 11: The company shall comply with environmental regulations and relevant international standards, properly protect the natural environment, and strive to achieve environmental sustainability goals while carrying out operational activities and internal management.
Article 12: The company shall strive to improve the efficiency of resource utilization and use materials with low environmental impact, such as recycled materials and biodegradable materials, to ensure the sustainable use of Earth's resources.
Article 13: The company shall establish an appropriate environmental management system based on the characteristics of its industry. This system should include the following items:
1. Collect and evaluate sufficient and timely information regarding the impact of operational activities on the natural environment.
2. Establish measurable environmental sustainability goals and regularly review their progress and relevance.
3. Develop specific plans or action measures, and regularly review their effectiveness.
Article 14: The company establishes a dedicated environmental management unit, the "Safety and Health Department," along with personnel, to collaborate with various departments in promoting environmental-related policies. They are responsible for drafting, implementing, and maintaining relevant environmental management systems and specific action plans, and regularly conduct environmental education courses for management and employees
Article 15: The company should consider the impact of its operations on ecological benefits, promote and advocate for the concept of sustainable consumption, and engage in research and development, procurement, production, operations, and service activities based on the following principles to reduce the impact of the company's operations on the natural environment and humanity:
1. Reduce resource and energy consumption in products and services.
2. Reduce the emission of pollutants, toxic substances, and waste, ensuring proper waste management.
3. Enhance the recyclability and reusability of raw materials and products.
4. Maximize the sustainable use of renewable resources.
5. Extend the durability of products.
6. Improve the efficiency of products and services.
Article 16: To enhance water resource efficiency, the company shall properly and sustainably utilize water resources and establish relevant management measures.
The company shall construct and enhance relevant environmental protection facilities to prevent pollution of water, air, and land. It shall make every effort to minimize adverse impacts on human health and the environment by adopting the best feasible pollution prevention and control technologies.
Article 17: The company should assess the potential risks and opportunities of climate change for both its present and future operations, implement measures to address climate-related issues, and adopt nationally and internationally recognized standards or guidelines to conduct and disclose corporate greenhouse gas inventories. The scope includes:
1. Direct Greenhouse Gas Emissions: Emissions from sources owned or controlled by the company.
2. Indirect Greenhouse Gas Emissions: Emissions resulting from the use of purchased electricity, heat, or steam.
The company should track greenhouse gas emissions, water consumption, and total waste weight, and establish policies for energy conservation, carbon reduction, greenhouse gas mitigation, water usage reduction, and waste management. Additionally, the company should incorporate carbon credit acquisition into its carbon reduction strategy and actively implement measures to minimize the impact of its operations on climate change.
Article 18: The company shall comply with relevant laws and follow international human rights conventions, such as gender equality, the right to work, and the prohibition of discrimination. To fulfill its responsibility in protecting human rights, the company shall establish relevant management policies and procedures, which include:
1. Present the company's human rights policy or statement.
2. Assess the impact of the company's operational activities and internal management on human rights, and establish corresponding handling procedures.
3. Regularly review the effectiveness of the company's human rights policy or statement.
4. In the event of human rights violations, the company should disclose the handling procedures for the affected stakeholders. The company shall follow internationally recognized labor human rights, such as freedom of association, the right to collective bargaining, care for vulnerable groups, the prohibition of child labor, the elimination of all forms of forced labor, and the elimination of employment and job discrimination. Furthermore, the company shall ensure that its human resource policies do not discriminate based on gender, race, socio-economic status, age, marital, or family status, and shall implement equality and fairness in employment, hiring conditions, compensation, benefits, training, evaluations, and promotion opportunities.
In the event of situations that harm workers' rights, the company shall provide an effective and appropriate grievance mechanism to ensure equality and transparency throughout the complaint process. The grievance channels should be simple, convenient, and accessible, and the company should provide appropriate responses to employees' complaints.
Article 19: The company shall provide employees with information to help them understand the labor laws of the country where the company operates and the rights they are entitled to.
Article 20: The company shall provide employees with a safe and healthy working environment, including necessary health and first aid facilities, and strive to reduce factors that may harm employee safety and health in order to prevent occupational hazards.
The company shall provide regular safety and health education and training for employees.
Article 21: The company shall create a favorable environment for employees' career development and establish effective career development training programs. The company shall also set and implement reasonable employee welfare measures (including compensation, vacation, and other benefits) and ensure that business performance or results are appropriately reflected in employee compensation, to ensure the recruitment, retention, and motivation of human resources, thereby achieving the goal of sustainable business operations.
Article 22: The company shall establish channels for regular communication and dialogue with employees, allowing them the right to access information and express opinions regarding the company's management activities and decisions.
The company shall respect the right of employee representatives to engage in negotiations regarding working conditions, and provide employees with necessary information and physical facilities to promote negotiations and cooperation between employers, employees, and employee representatives.
The company shall reasonably notify employees of operational changes that may have a significant impact on them.
Article 22-1: The company shall treat its customers or consumers in a fair and reasonable manner, including principles such as fair and honest contracting, attention to and duty of loyalty, truthful advertising, suitability of goods or services, disclosure and transparency, balanced compensation and performance, grievance protection, and professionalism of sales personnel. The company shall establish relevant execution strategies and specific measures.
Article 23: The company shall take responsibility for its products and services and emphasize marketing ethics. Its research and development, procurement, production, operations, and service processes shall ensure the transparency and safety of product and service information. The company shall establish and publicly disclose its consumer rights policy, implementing it in operational activities to prevent products or services from harming consumer rights, health, and safety.
Article 24: The company shall comply with government regulations and industry-related standards to ensure the quality of its products and services.
The company shall adhere to relevant regulations and international standards regarding customer health and safety, customer privacy, marketing, and labeling. It shall not engage in any deceptive, misleading, fraudulent, or any other actions that undermine consumer trust or harm consumer rights.
Article 25: The company shall assess and manage various risks that may cause operational disruptions, minimizing their impact on customers and society.
The company shall provide a transparent and effective customer complaint procedure for its products and services, handling customer complaints fairly and promptly, and shall comply with relevant laws such as the Personal Data Protection Act.
Article 26: The company shall evaluate the environmental and social impact of its procurement activities on the supplier communities and collaborate with its suppliers to implement corporate social responsibility.
The company should establish supplier management policies, requiring suppliers to comply with relevant standards on environmental protection, occupational health and safety, and labor rights. Before engaging in business transactions, the company should assess whether its suppliers have a history of impacting the environment or society, avoiding transactions with those whose actions conflict with the company's social responsibility policies.
When signing contracts with major suppliers, the contract should include clauses requiring compliance with both parties' corporate social responsibility policies. If the supplier violates these policies and causes significant negative impacts on the environment or society in the supplier's community, the company should have the right to terminate or cancel the contract at any time.
Article 27: The company shall assess its business operations' impact on the community and appropriately hire local workforce in the areas where the company operates to enhance community recognition.
The company shall contribute resources through business activities, physical donations, corporate volunteer services, or other public welfare professional services to organizations that address social or environmental issues through business models or participate in community development and community education activities of civil organizations, charitable groups, and local government agencies, thus promoting community development.
Article 28: The company shall disclose information in accordance with relevant regulations and corporate governance best practices, ensuring the full disclosure of significant and reliable corporate social responsibility-related information to enhance transparency. The company shall disclose the following corporate social responsibility information:
1. The corporate social responsibility policies, systems, related management guidelines, and specific implementation plans approved by the Board of Directors.
2. The risks and impacts on the company's operations and financial status resulting from the implementation of corporate governance, the development of a sustainable environment, and the protection of social welfare.
3. The goals, measures, and performance for fulfilling the company's corporate social responsibility objectives.
4. Key stakeholders and the issues they are concerned about.
5. Disclosure of the management and performance information of major suppliers regarding significant environmental and social issues.
6. Other corporate social responsibility-related information.
Article 29: The company shall establish a corporate social responsibility policy and implement it in the company's business plans. The execution of this policy includes:
1. The implementation of corporate social responsibility policies, systems, related management guidelines, and specific promotion plans.
2. Key stakeholders and the issues they are concerned about.
3. The company's performance and reviews in implementing corporate governance, developing a sustainable environment, protecting social welfare, and promoting economic development.
4. Future improvement directions and goals.
Article 30: The company shall continuously monitor the development of domestic and international corporate social responsibility standards and changes in the business environment. Based on this, the company shall review and improve its established corporate social responsibility system to enhance the effectiveness of fulfilling corporate social responsibility.
