Specific (or part-time) unit set up to promote corporate social responsibility: ESG office
* How the unit operates: With reference to the international guidelines for the preparation of reports. The Company prepares an annual “Corporate Social Responsibility Report” and reports the status of the handling to the board of directors as a means to strengthen the disclosure of its corporate social responsibility information.
I. The Company performs risk assessments on environmental, social, and corporate issues in relation to the Company’s operations based on materiality principles. The relevant policies and strategies are as follows:
(I) Environment Industrial safety and environmental risks. Since the establishment of the plant, the Company has been making an effort to reduce the environmental impact on the production. The Company aims to provide our employees a safe workplace where pollution is low. In recent years, the Company has introduced a number of water and electricity conservation facilities. In terms of waste treatment and sewage disposal, the Company has also invested in a variety of equipment and manpower, dedicating itself to becoming a eco-friendly company. The Company has attained the ISO 14001 environmental management system certification to establish an environmental management system that meets the standards. Risk of business interruption and property loss due to natural disasters: In an effort to avoid the risk of property loss and business interruption, the Company takes out insurance policies to transfer related risks. In addition, CMMT has set up a disaster prevention center and has a designated commander. The commander is responsible for quickly dispatching emergency response manpower to reduce disaster losses in the event of a typhoon or earthquake by quickly carrying out an inventory check, control and blocking of the disaster area.
(II) Society Industry change risk: By regularly keeping a close eye on industry news and researches, the Company hopes to provide the management with the latest industry dynamics and changes in order to make the most suitable decisions. Manpower risk: Not only does the Company review our salary framework and improve employee benefits on a regular basis, the Company has also begun to introduce foreign workers to fill in the labor gap.
(III) Corporate governance Credit risk: The Company reviews the status of accounts receivable return and collection operations on a regular basis, and analyzes the industry and customer operating conditions to reduce the risk of bad debts. Interest rate and exchange rate risk: The Company only carries out physical hedging and only chooses conservative and stable hedging products. Liquidity risk: The Company persists in the expansion of long-term and short-term financing channels to fully diversify its sources of capital, while also strengthening the capital structure using capital marketing financial instruments. Information security risk:
CMMT strives for the protection of the confidential information and intellectual property of the Company as well as its stakeholders to ensure the interests of the Company, customers, employees and all of its shareholders and to secure its competitiveness. The Company has also set up an internal closed system and promotes information and measures with respect to information security to its employees on a regular basis. By carrying out such approach, the Company aims to prevent external parties from stealing or photographing company information
(I) Does the Company have an appropriate environmental management system established in accordance with its industrial character?
The Company has established appropriate environmental management in accordance with its industrial character and is RoHS compliant. In production, we use non-hazardous substances specified in the regulations to reduce the impact on the environment. The Company has also attained the new version of ISO 14001:2015 certification in 2018.
(II) Is the Company committed to enhancing the utilization efficiency of resources and use renewable materials with low impact on the environment?
The Company’s commitment to enhancing the utilization efficiency of resources:
Waste reuse: The Company conducts management of main packaging materials, pads and chemicals as well as enforcing reduction and recycling.
For packaging, the Company uses PP boxes that can be recycled to improve the use cycle of these materials while reducing waste generation; for pads, the Company recycles used pads or cuts pads into small sizes to be used over and over again; For chemicals, and iodine recovery system has been introduced and aqueous solution containing iodine is concentrated and purified by the supplier, achieving the benefit of recycling the raw material; and for water recovery, the water recovery rate is improved through the adoption of process equipment system that recycles and reuses water.
(III) Has the Company assessed the potential risks and opportunities for business operations now and the future regarding climate change and will it adopt response measures relating to climate issues?
The Company has been fulfilling its duties to improve the efficiency of all types of resources. The Company has introduced a number of energy-conservation facilities and green energy, hoping that, through our production activities, the Company will move towards the goal of being a low-carbon company as well as creating economic value: adding inverters for air compressors, inverters for the air conditioning at production line, energy-saving air conditioning in the kitchen and inspection station operation changes. Since 2016, in line with the government’s promotion of renewable energy policies, the Company has installed solar power generation systems in its plants. In 2020, the solar power system generated a total of 851,848 kWh of electricity The electricity was self-generated, which accounted for 1% of the total electricity consumption.
(IV) Has the Company calculated the greenhouse gas (GHG) emissions, water consumption, and total weight of waste in the past 2 years, and formulated policies on energy conservation and carbon reduction, GHG reduction, water consumption, or other waste management?
1. The Company’s statistics on GHG emissions, water consumption, and total weight of waste in the past 2 years Year
| Carbon dioxide equivalent (CO2e) | Water consumption (degrees) | Total weight of waste (tons) | |
| 2020 | 51,337 | 721,569 | 3,526 |
| 2021 | 49,067 | 622,344 | 4,559 |
2. Energy saving and carbon reduction, GHG reduction policies and measures:
*Our chilled water system runs with a dual temperature system of 7°C and 14°C to reduce the energy loss of temperature conversion needs.
*The chilled water circulation system and cooling water tower fan use an inverter compressor which allows automatic adjustment of appropriate flow rate and air speed to reduce inefficient energy loss.
*The air pressure system on the other hand adopts both fixed-frequency and variable-frequency systems. The fixed-frequency system is used as the base load operation, while the variable-frequency air compressor as the variable load adjustment pressure. Both systems effectively maintain a constant pressure while reducing the energy consumption of the fixed-frequency air compressor being turned on and off.
* An inverter has been installed in the clean room air conditioning box, effectively maintaining a constant pressure in the clean room and reducing energy consumption.
* As for the basement parking lot and outdoor street-lights, old lights have been replaced with LED lighting to reduce electricity consumption.
* A solar power system has been installed on the roof, and it generates electricity for the Company’s own-use, reducing the purchase of electricity from Taipower.
The GHG inventory in the plant is carried out, and a third-party impartial unit is appointed to verify GHG emissions in accordance with the related specification (14064-1) to ensure a full grasp of the emissions data for future energy saving and carbon reduction benchmarks.
3. Reduction of water and other waste policies and measures: Water saving measures: Pure water system recycling, process water saving recycling, other water saving recycling. Waste management policy: CMMT strives to promote cutting down waste and resource recovery at source. The Company has implemented various reduction plans in the plant, such as: extending the usage period of production line raw materials, packaging material racks recycled for reuse, and recycling waste plastic to increase reuse rate. Overall, it is CMMT’s commitment to improve product yields and reduce waste generation by reducing consumption.
4. Other pollution emission control measures:
* Records: Daily record of operation data for air pollution prevention equipment.
* Maintenance: Carry out repair and maintenance of all equipment in accordance with the maintenance schedule in the operating instructions for prevention equipment.
* Regular inspection: Regular inspection is performed by a commissioned qualified agency approved by the EPA based on the pollutants and discharge pipes of stationary source operation permit application.
* Employee training: After operators receive complete training of related equipment, they may begin to operate the air pollution prevention equipment.
2020 implementation result:
In 2020, the solar power system generated a total of 851,848 kWh of electricity. The electricity was self-generated, which accounted for 1% of the total electricity consumption. In 2020, the Company applied for 860 renewable energy certificates (1,000 kWh per certificate), and as of March 10, 2021, 789 renewable energy certificates had been sold.
In 2020, waste generated per unit from production decreased by 0.2 metric tons per 10,000 meters, and hazardous business waste decreased by 0.03 metric tons per 10,000 meters.
In 2020, wastewater discharge per unit from production decreased by 19 M3/million meters and a reduction of 7%.
In 2020, 3,526 tons of business waste of the entire company were cleaned up by a commissioned entity. Of all the waste, 1,102 tons were recovered and reused, 1,906 tons were incinerated, and 518 tons were disposed of in landfills.
In 2020, the entire company’s waste recycling ratio was 31%.
(I)Has the Company developed its policies and procedures in accordance with laws and International Bill of Human Rights?
The Company’s management regulations (including employee welfare measures, retirement system, etc.) are all in compliance with Taiwanese labor laws and regulations. The Company also follows the International Bill of Human Rights and provides a working environment that balances work and life. Moreover. the Company has passed OHSAS18001 certification and attained occupational safety and health system certification, beneficial to the elimination or reduction of work risks for employees.
(II)Has the Company established and implemented reasonable measures for employee benefits (including remuneration, holidays and other benefits), and appropriately reflect the business performance or achievements in the employee remuneration?
The Company has established and implemented reasonable measures for employee benefits: Leave: A comprehensive leave system in accordance with labor laws and regulations is provided. The Company places great importance on female-friendly benefits such as maternity leave, parental leave, paternity leave. Remuneration: Not only are employees provided with stable annual salary and annual bonuses, rewards are also allocated for our employees depending on the operational conditions and their personal performance. From time to time, the Company offers promotions and pay rises in conjunction with employee performance appraisal. The Company began to implement an employee stock ownership trust program in 2018, aiming to increase the centripetal force of employees with a diversified remuneration system.
In 2020, the Company paid an average monthly salary of NT$67,700 per employee, higher than the average monthly salary of NT$54,320 per employee according to the 2020 statistics released by the Directorate General of Budget, Accounting and Statistics — the salary level we offer at CMMT is better than the national average.
Benefits: In addition to satisfying employees’ needs for food, clothing, housing, transportation, education, and recreation, the Company also provide employees with comprehensive insurance, including life insurance, accident insurance and free group insurance to give employees peace of mind. CMMT has also established an employee welfare committee, providing maternity, marriage, childbirth, funeral, leisure allowances, as well as birthday vouchers and vouchers for 3 major holidays in Taiwan.
The Company also has systems in place for company trips and retirement. The Company’s retirement system is fully in compliance with regulations stipulated in the Labor Standards Act and Labor Pension Act. Employees of the Company who meet one of the following circumstances may apply for retirement: Those who have worked for over 15 years and are at least 55 years old; those who have worked for over 25 years. The Company shall not enforce mandatory retirement on an employee unless the employee meets ones of the following circumstances: Those who are over 65 years old; and those who are mentally or physically incapacitated and are deemed unfit for work. The age specified in the preceding paragraph may be adjusted by the Company through the central competent authority for workers with work of a special nature such as that which is dangerous or requires physical strength, but they not shall be under 55 years old. The determination of the retirement age of employees shall be based on the household registration. The Company’s retirement system has been well implemented in accordance with the Labor Standards Act and Labor Pension Act. For employees who are eligible to claim the pension as stipulated in the “Labor Pension Act”, the Company contributes 6% of employees’ wages to their personal accounts each month. Number of people who applied for retirement in recent years:
| Year | 2018 | 2019 | 2020 | 2021 |
| Number of retirees | 0 | 0 | 0 | 1 |
(III) Does the company provide employees with a safe and healthy work environment? Are employees trained regularly on safety and health issues?
When it comes to the training of new hires, the Company is in full compliance with the Labor Standards Act and OHSAS18001. The Company provides a full range of basic education and training to new employees, including environmental health and safety, fire safety, static electricity protection, aiming to increase employees’ basic safety awareness. In the event of an injury, employees are provided with a safety and healthy workplace through an abnormal accident management system. Employees are not only entitled to an annual health examination, the Company has also been putting an effort in investing in special protection programs and workplace health promotion events, hence the reason the Company was awarded with the “Badge of Accredited Healthy Workplace”. The number of work-related fatalities and occupational diseases among employees in 2020 was 0. 2020’s implementation of education and training:
| Training category | Total number of course | Total number of people | |
| Safety and Health | 401 | 1,383 |
(IV) Has the company implemented an effective training program that helps employees develop skills over their career?
The Company provides fixed education and training to internal employees each year to establish an effective career development training program, such as:
(1) ISO 9001 and QC 080000 Internal Auditor Training Course.
(2) ISO 14064 Greenhouse Gas Accounting and Verification & Auditor Training Course
(3) ISO 45001:2018 Occupational Health and Safety System and Internal Auditor Training Course
(4) Internal Process Auditor Process Failure Mode and Effects Analysis (PFMEA) and Control Plan Awareness Training
(5) Management Training Program (MTP) for middle level supervisors to enhance their management skills.
(6) Training Within Industry (TWI) for grassroots management skills - work coaching and work improvement.
(7) Awareness and promotion of Personal Data Protection Act: Practical Course for Information and Business Audits and Palo Alto Networks Firewall Hands-on Experience.
(8) How to make good use of the computer system to identify abnormal transactions
(9) Corporate Compliance Course: Major Labor-Management News Incident, Security and Supervisor Training Course
(V) Has the company implemented consumer protection and grievance policies with regards to its research, development, procurement, production, operating and service activities?
The Company’s products all follow applicable laws and regulations as well as international standards, and are RoHS compliant.
(VI) Has the company established supplier management policies demanding compliance with relevant regulations and their execution status regarding issues such as environmental, occupational safety, and health or labor rights?
Operating condition: Yes
The “Basic Supplier Information Form” signed with suppliers before a business dealing includes the question to the question of “whether the supplier’s historical record of environmental and social impact has been assessed”. The Company also established a “Supplier Social Responsibility Agreement” with major suppliers, including terms of termination or cancellation of the contract at any time if the supplier is involved in a violation of its corporate social responsibility policy and has significant environmental and social impact. In an effort to implement corporate governance, on November 11, 2015 and June 20, 2016, the board of directors passed the “Procedures for Ethical Management and Guidelines for Conduct”, which includes the “Declaration of Integrity for Suppliers”. The “Declaration of Integrity for Suppliers” and the “Supplier Social Responsibility and Integrity Commitment” can be found on the Company’s website: www.cmmt.com.tw (Corporate Responsibility → Corporate Governance).
Yes, the Company prepares the annual CSR report in accordance with the GRI Standards: Core, published by the Global Reporting Initiative (GRI). The Company’s reports have not been verified or assured by a third-party.
The Company’s board of directors passed the “Corporate Social Responsibility Best Practice Principles” on Feb 17, 2022. Its operation does not deviate from “Corporate Social Responsibility Best Practice Principles for TWSE/TPEx Listed Companies”.
(I) In an attempt to fulfill the Company’s social responsibility to protect earth, the main raw materials used are in accordance with the EU’s “Restriction of (the use of certain) Hazardous Substances”, which came into effect in July 2006. The hazardous substances are banned in production and all departments are informed of related information to ensure that the Company’s products meet the requirements of EU’s directives or customers. Furthermore, the Company has attained the ISO 14001:2004 environmental management certification - it is the Company’s ongoing dedication to make a difference in environmental pollution, energy and resource conservation and waste reduction to reduce potential environmental risks.
(II) The Company have also passed the OHSAS 18001: 2007 occupational safety and health management system. The Company insists on effectively eliminating or reducing risks for workers, while improving occupational health and safety and further reducing medical claims and insurance costs.
(III) It is in the Company’s nature to always lend a hand when there is a social crisis. In response to environmental sustainability, the Company supported a native species tree planting activity in 2016.
(IV) Promoting education and public welfare: To make good use of the Company’s power, it sponsored WHYIXD in 2019 in the “2020 X-site Program: X-Reality” - unique light and shadow effected were displayed through the optical properties of polarizing plates sponsored by CMMT. The work has also won the first-place prize among the total of 42 works in the exhibition.
(V) The Company partnered up with the Tainan Astronomical Education Area in organizing the “Science Kids Alliance and Pa-Ke’s Fantastic Science Exhibition” on November 22, 2020. CMMT sponsored polarizing plates for the work “Swamp Code”, revealing the hidden secret of the lotus swamp through the eyes (polarizing plate) of the black-faced spoonbill. CMMT implements the educational significance of corporate responsibility through the fun activities.
