Sustainable development implementation status

Sustainable development implementation status

IIn response to changes in international trends and issues on climate change, environment, society, and corporate governance, TYC upholds the vision of "bring a meaningful impact on the world" and changes the original point of view from implementing corporate social responsibility to sustainable development. The "Sustainable Development Committee" was officially established in 2022 to promote, plan, and implement corproate sustainable development matters. The general manager is the chairman of this committee; the directors from each division are the accountable members; and the managers from functional departments are members. The Company promotes implementation of corporate sustainable development effectively through the members of the committee working closely together.

There are four task teams of corporate governance, environmental sustainability, friendly workplace, and social participation, and an executive office under the Sustainable Development Committee. It vigorously integrates company resources through internal and external environment examination and communication by cross-department and makes policy and action plan (P), implementation (D), and regular performance review (C), and continuous strengthen and improvement adjustment (A) for sustainable development targets. The Committee reports the implementing status and execution result of corporate sustainability  to the Board of Directors once a year, and publishes sustainability report to disclose the result of environmental, social, and governance implementation in detail. Verification from a third party agency is expected in 2023 for continuous improvement and implementation on corporate sustainable development policy.

IIIn order to implement risk management mechanism and strengthen corporate governance, TYC assigns each authority to perform risk and opportunity identification based on the different aspects of operation management, including operational risk, financial risk, and management system risk. It continues to track and confirm on improvement through risk identification and effectively reduces operational risk.

※Operational risk management

The Company keeps observing changes in market and the industry and convening guideline for management strategy meeting regularly every year. With data collected by each authority to make analysis on internal and external environment before the meeting, it summarizes the Company's advantages, disadvantages, opportunities, and threats, and proposes a specific action plan based on a SWOT analysis result. It will be the reference for guideline for management strategy planning in making short, medium, and long term strategic goals, Key Performance Indicators, and a practicable action plan. It sets up the "Regulations for planning and managing guideline for management strategy and Key Performance Indicators" and reviews the diagnostic operation standards based on Key Performance Indicators for effective management on operation. Operational meeting is regularly held to track and improve on operational performance, so the operational strategy can reach the operational goal.

※Financial risk management

Finance-related risk management that conducts risk assessment and explains coping strategy with focuses on market risks (exchange rate, interest rate, and equity price), credit risk, and liquidity risk.

※Risk management of management systems

1. IATF 16949:2016 quality management system for organizations in the global automotive industry.

2. ISO 45001 and CNS 45001 Occupational Safety and Health Management System.

3. AEO Authorized Economic Operator.

※Public health risk management

It strengthens prevention in advance and tracking confirmation to prevent impacts on the Company from communicable disease (such as novel influenza, influenza, tuberculosis, dengue, and COVID-19, etc.) spreading. The Company implements epidemic prevention propaganda and measure to all employees, visitors entering the plant, subcontractor, and delivery man with the efforts from the General Affairs Section, Human Resources Section, purchasing unit, and other relevant units, as well as stock up on epidemic prevention supplies.

IIIEnvironmental issues

AThe company established an appropriate environmental management system according to its industrial characteristics

1. We have obtained ISO14001:2015 environmental management system certification (Certificate No. TW005050;  expiry date: 2023/09/29) to promote industrial waste reduction, energy saving and resource recycling.

2. In order to establish a safe and healthy working environment, our company has been certified by ISO45001:2018 in September 2020 (certification number TW005051, expiry date: December 5, 2025) and CNS45001 occupational safety and health management system to implement safety and health management, and hold regular fire fighting education and training for employees and regular inspection of related equipment.

BThe company committed to improving resource efficiency and using recycled materials with low impact on the environment

1. In the R&D and design stage, we try our best to develop green concept products to reduce the impact on the environment and ecology, and to introduce environment-friendly equipment and technology solutions to properly control and prevent pollution generation. The LED street light has been certified on “carbon footprint” by the Environmental Protection Administration.

2. The process wastewater in the plant is treated as secondary water to save water resources, and the raw materials of the production line arerecycled to achieve the reduction of raw materials.

3. The process-related equipment is continuously integrated into the inverter energy saving system to reduce the company's energy consumption. The resource waste generated in the plant is treated through the plant recycling system to reduce the amount of waste production.

4. The plant water system has been upgraded to continuously improve the efficiency of recycled water use.

5. The reduction of process gas emissions to reduce the emission of volatile organic pollutants.

6. In line with Tainan City's Low Carbon Autonomy Ordinance, the company has installed a 4,157KW solar energy system to support the Renewable Energy Law in practice.

CThe company evaluate the current and future potential risks and opportunities of climate change and take relevant corresponding measures

1. Our company has established greenhouse gas inventory practices and regularly does an inventory of greenhouse gas emissions in accordance with the international ISO 14064-1:2006 (CNS 14064-1) carbon emission standard, and our production plants have been awarded the Carbon Reduction Action Award by the Environmental Protection Agency.

2. Replace chilled water equipment with high efficiency energy saving models to reduce energy consumption and greenhouse gas generation.

3. Continued introduction of variable frequency equipment into the production facilities to reduce energy consumption and greenhouse gas

emissions within the plant.

 DThe company compiled statistics on greenhouse gas emissions, water consumption and total weight of waste for the past two years, and has it formulated policies for greenhouse gas reduction, water use reduction or other waste management

1. Water consumption: 108,651 tonnes in 2021 and 99,949 tonnes in 2022, a total reduction of 8,702 tonnes (8.01% water saving) through process water recycling.

2. Total weight of waste: 585.512 tonnes in 2021 and 506.127 tonnes in 2022, representing a 1-year reduction of 79.39 tonnes (13.5% reduction) in business waste.

3. Electricity consumption: 35,838,400 kWh in 2021 and 34,547,120 kWh in 2022, a 1-year decrease of 1,291,280 kWh (3.6% reduction).

4. In 2022, we will continue to promote the resource recovery program and carry out the replacement of the inverter system of process facilities.

5. Management goal: the polluted water was 58,326 tonnes in 2022 and 65,626 tonnes in 2021, representing 11.1% reduction.

6. Measures for goal reaching, climate change estimation, and corresponding:

(A) Energy saving and carbon reduction: renew the cooled water chiller unit, air conditioning, and make improvement on carrier to save the electricity.

(B) Water management: use recycle water in process water drencher system and air conditioning system.

(C) The Company conducts annual discussion on climate change issue through internal and external issues and requirement and expectation evaluation/plan of the stakeholder. It focuses on water resource management improvement this year and builds a reclaimed water system. The polluted water reduced by 11.1% compared to the amount last year.

IVSocial issues

AIn order to fulfill our corporate social responsibility and to protect the basic human rights of all employees and stakeholders, we have established this policy in compliance with the United Nations Universal Declaration of Human Rights, the International Labor Organization Convention and other relevant human rights norms. The Company observes the "Labor Standards Act", "Employment Service Act", "Act of Gender Equality in Employment", "Sexual Harassment Prevention Act", "Occupational Safety and Health Act", and other labor-related laws and regulations to ensure that human rights are not violated and that both internal and external members of the company are treated with respect and fairness.


BThe Company has established work rules, welfare management rules and related personnel management regulations, which cover wages, working hours, vacations, employee benefits, pension payments, and compensation for occupational accidents for the employees employed by the Company in accordance with the Labor Standards Law, and has established an employee welfare committee to handle welfare matters in accordance with the law and taking into account the needs of the employees. employee compensation policies are determined based on individual ability, performance, contribution to the Company, the market value of the position held and consideration of the Company's future operational risks, and are positively related to operational performance.

CThe Company has clearly stipulated the commitment to human rights and employee protection in internal regulations such as "Work Rules", "Employee Recruitment and Hiring Regulations", "Sexual Harassment Prevention Regulations", "Prevention Plan for Unlawful Infringement in the TYC Workplace", and "Personnel Rewards and Punishment Regulations".

(i)        Equal hiring and career developing opportunity: no discrimination, harassment, or any unfair treatment for the nationality, race, age, gender, marriage status, gender identity, disability, pregnancy, religion, political stand, or other charasteristics.

(ii)      Prohibition of using child labor: it is strictly required that no child labor should be hired in domestic and oversea business locations. Age and identification shall be identified on all applicants to eradicate hiring child labor.

(iii)    Value workplace safety: it stipulates standard operation and emergency procedure, and provide work protective gear for employee as appropriate to ensure operational safety.

(iv)     Promote maternal protection: take necessary measures for female employee working at jobs that might endanger to maternal health, including hazard evaluation and control, doctor's interview and guidance, job suitability arrangement, and other relevant measures.

(v)       Eliminate workplace violence: the Company takes "zero tolerance" principle for all kinds of unlawful infringement in the workplace, and bulid a safe, honor, non-discriminatory, mutually respectful and tolerant, and equal opportunity workplace culture (including any form of harassment, infringe, physical punishment, verbal insults, and mental oppression, etc.).

There were 12 disability incidents in 2022. The number of injured people was 0.75% of the total employees. Environmental, Health and Safety unit has discussed and established an improvement project, as well as checking the hazard identification evaluation chart and risk improvement measure of the equipment to reach the ultimate goal of zero work injury from the improvement measures of management, behavior, and hardward perspectives.

DThe Company has established "Educational Training Implementation" to cultivate talents in various professional technology and operation management. It follows TTQS system to develop a vocational training system and carries out cultivation development for employees at various levels and job positions. In addition to the required vocational training course for each level, vocational training activities, such as educational training for newhires, first time job position training, general vocational training, core vocational training, professional vocational training, are also available to inspire employees' working potential and keep strengthening their professional capabilities.

   TYC makes plan and arrangement for employee to participate in relevant training course based on the training needs every year. In 2022, the training hours in total were 16,433. There were 456 internal educational training courses, which took a total of 15,236 hours with 7,441 person-time. A total of 1,197 hours with 105 person-time were complete for external training course. The total expense for training was NT$2,541,590. The average training hour was 10.2 hour/person with NT$1,582/person for all employees in 2022. 

EOur company sells in more than 130 countries around the world and produces lights that comply with the relevant international automotive lighting regulations in each country. We listen to and respond to our customers' needs in a timely manner, reacting quickly to market trends and striving for consistent precision and perfection in the design of each product.

   Grievance channels: In addition to filling out the online form on the website, customers can also use the sales headquarters customer service mailbox ( to file a complaint.

FTo make sure the overall supply chain has met the requirements of domestic laws and regulations, international guidelines and standards, customer demand, as well as achieving the vision of sustainable prosperity, the Company has established the "TYC Supplier's Code of Conduct" in 2022 by refering to the "Guiding Principles on Business and Human Rights" and "The United Nations Global Compact" from the United Nations, and "Fundamental Principles and Rights at Work" from the International Labor Organization and expects the suppliers to build a responsible, environmental, and transparent supply chain relationship. A total of 182 suppliers were evaluated in 2022, and all of them had passed the evaluation.

VSustainability Report

AThis report is prepared in accordance with the latest version of the GRI Standards (2021 version) issued by the Global Reporting Initiative (GRI) and "Taiwan Stock Exchange Corporation Rules Governing the Preparation and Filing of Sustainability Reports by TWSE Listed Companies" by the Taiwan Stock Exchange Corporation, as well as Task Force on Climate-related Financial Disclosures (TCFD) to reveal relevant strategies, goals, and actiona of TYC's material topics.

BThis report is certified by Bureau Veritas, a third party notarization agency, with AA1000AS v3 of Type 1 Moderate Level on the inclusivity, materiality, responsiveness, and impact of the information disclosed in this report.

Notice: All related information and statistics on Investor our website page are only for references, not for investment recommendations. TYC and sources of information shall not be responsible for any inconsistencies and delays of the content, and other activities related to investment.
Ok Cancel