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Critical issues and SDGs

Key
Issues
and
SDGs
The main step of stakeholder engagement 2024
Identify the stakeholder
Prioritize and Analyze
Map out the stakeholder engagement plan
CGPC adheres to the AA1000 Stakeholder Engagement Standards (SES) for stakeholder engagement. We assess the governance, economic, environmental and social issues and the impact on stakeholders, considering factors such as responsibility, influence, dependency, diverse perspectives and tensions. We conduct surveys using an online questionnaire targeting key stakeholders such as department managers. The results are then systematically organized using a weighted average scoring system. Based on this assessment, the identified stakeholders are ranked as follows: 1.Employees, 2.Customers, 3.Suppliers/contractors, 4. Government agencies, 5. Investors.
Stakeholders’ identity information, issues of concern, communication channels and response methods are submitted to the Board of Directors every year.
Stakeholders’ identity information, issues of concern, communication channels and response methods are submitted to the Board of Directors every year.
Communications and response to Stakeholders
  • Employees are the foundation of our sustainable development. We pay attention to the employment criteria, remuneration and benefits, training and evaluations and equal opportunities for promotion, while providing a grievance mechanism.
    • Communication channel / Frequency
      Performance interview / Half year.
      Labor-management meeting / Monthly.
      Union labor representative assembly / Annually.
      Employee grievance mailbox processing / Anytime.
      Bulletin board and email/anytime.
      Various work review meetings/ Weekly, Monthly, and Quarterly.
      CGPC Family Newsletter /Every two months.
      Birthday party, employee exchange/From time to time.
    • Issue of concern
      Economic performance.
      Human Rights and Labor-Management Relations.
      Occupational Safety and Health.
      Talent Development and Cultivation.
    • Summary of CGPC’s response
      In accordance with the Consumer Price Index and individual performance, the salary adjustment for 2024 is approximately 3.08% on average for employees.
      The labor union holds regular meetings to communicate with employee representatives and signs a human rights protection policy with the company. The employee participation rate in the union reaches 91%, and sign a human rights policy.
      The Occupational Safety and Health Committee meeting is held quarterly and a total of 17 critical occupational safety issues were discussed in 2024.
      Recognized as an excellent training institution in the Taoyuan, Hsinchu, and Miaoli regions by the Workforce Development Agency of the Ministry of Labor, we received a total of 258 subsidies in 2024. The total training hours were 125 hours and the subsidy received amounted to NT$ 110,000.
      Senior management communicates with employees at quarterly celebrations and with the union from time to time (12 times in 2024).
      The Company has responded to the suggestions made by stakeholders. Please refer to CGPC Family Newsletter 11-12 Issue。
  • Customers are CGPC's primary source of revenue. We actively engage with our customers, listening to their needs and collecting market information to ensure that we promptly deliver products and information that align with their demands.
    • Communication channel / Frequency
      Sending samples / From time to time.
      Product exhibition / From time to time.
      Visits, phone calls, emails, video conferences / Anytime.
      Client satisfaction survey / Annually.
      Client feedback and complaint response form / Anytime.
      CGPC Family Newsletter /Every two months.
    • Issue of concern
      Economic performance
      Client relationship management.
      Technology Research and Development.
      Product Quality.
    • Summary of CGPC’s response
      Through the annual client satisfaction survey, we gain insights into clients'opinions. In 2024, 98.7% of the clients who responded to the survey rated their satisfaction as “Satisfied” or above, surpassing the target of 90%.
      New PVC Leather products in 2024: Including automotive and motorcycle seats & interior sponge leather, TPE environmentally friendly material, furniture leather, sales of new products accounted for approximately 5.4% of the revenue of this product category, respectively.
      In 2024, a total of 24 quality improvement proposals were implemented, resulting in derived benefits amounting to NT$ 609 million. The derived benefits increased compared to the previous year.
  • Suppliers/Contractors are CGPC's important partners in sustainable development, affecting our production, services, and operations. We learn about suppliers’ concerns through communication channels to reduce business risks and costs.
    • Communication channel / Frequency
      Review meetings / From time to time
      Supplier evaluation, Commitment / Annually , any time.
      Contractor safety and health education and training / From time to time.
      Industry exchange seminars / At least once a year.
      Visits, phone calls and emails / From time to time.
      CGPC Family Newsletter /Every two months.
    • Issue of concern
      Sustainable Management of Supply Chain
      Occupational Safety and Health
    • Summary of CGPC’s response
      (1) Engage in meetings with suppliers from time to time to meet our needs for quality and transaction conditions.
      (2) Conduct supplier evaluation once a year and inform them of the results.
      (3) Motivate suppliers to sign a social responsibility commitment.
      (4)Contact point : Mr. Chen, Material Planning Department at (02) 8751-6888 ext. 37712.

      In 2024, a total of 4,091 employees of CGPC‘s contractors visited the plants for safety education and training. CGPC, TVCM and CGPCP contractors did not have accidents occurring between 2022 and 2024. (Details CH6.4.4 Contractor Safety Management Instructions)
  • Comply the relevant laws and regulations of government agencies, actively cooperate with the implementation of government policies and actively engage in two-way communication to gain its trust, support and collaboration opportunities.
    • Communication channel / Frequency
      Meet with regulatory authorities or correspondence with official documents / From time to time.
      Dispatch of employees to participate in public hearings, coordination meetings or regular meetings / From time to time.
      Market Observation Post System /Release as required.
      CGPC Family Newsletter /Every two months.
    • Issue of concern
      Climate Change and Energy Management.
      Water Resources Management.
      Air Pollution Control.
    • Summary of CGPC’s response
      In 2024, environmental and occupational safety penalties amounted to NTD 1.06 million (4 cases) and NTD 90 thousand (2 cases), respectively. All improvements have been completed, and we did not violate regulations in terms of product services, client relationships, or labor and human rights. (Please refer to CH3.4 Regulatory Compliance for details)
      In recent years, we have actively promoted various improvement initiatives to strengthen the Company’s operations. The specific measures are as follows:
      2.1 Implemented Management System.
      2.2 Established an Activated Carbon Fluidized Bed to reduce VOC emissions, continuously promote circular economy practices, and lower carbon.
      2.3 Planning for climate change risk management.
      Established a water recycling system (HBF) , with a total recycled water volume of approximately 1,055.6 million liters in 2024. The R2 water recycling rate increased by 0.44% compared to the previous year. (Please refer to CH5.3 for details.)
  • CGPC should provide every investor with fair access to the Company's material information, to disclose the Company's market value and sustainable development trajectory.
    • Communication channel / Frequency
      Shareholders'meeting /Annually.
      Market Observation Post System/Release as required.
      The Company's website 「Investor Services」/Anytime.
      Annual report /Annually.
      Financial statements /Quarterly.
      ESG report /Annually.
      Investor conference /Four times per year.
      CGPC Family Newsletter /Every two months.
      The Company's website 「 USI Joint Stock Network」/Irregular.
      Setup of whistleblowing mailboxes.
    • Issue of concern
      Economic Performance.
      Client relationship management.
      Technology Research and Development.
    • Summary of CGPC's response
      Annual shareholders'meetings and quarterly investor conferences held by the Company are held to report our operating results and outlook to our shareholders and the public.
      (1) Regularly disclose financial information on the MOPS of the Taiwan Stock Exchange and the company's website.
      (2) Set up the investor section on the Company’s website.
      (3) Formulated the Corporate Governance Best Practice Principles to prohibit employees from unethical conduct.
      (4) Established the Company's internal and external reporting channels and response systems to duly implement the Codes of Ethical Conduct and the Corporate Governance Best Practice Principles formulated by the Company and ensure whistleblowers and relevant people's legitimate rights and interests.
P.S. Since March 2022, the publication frequency of CGPC's Family Newsletter has been revised to once every two months. (Published in the second half of the second month.)
Material Issues
The Company followed the 2021 edition of the GRI Universal Standards to determine the three major steps of identification, analysis, and verification. A materiality analysis is performed every two years, and a dual materiality approach is incorporated. The sustainability topics analyzed were the “impact level to the company's operations” and “the impact level on the economy, the environment, and people (including human rights)”. The identification process and results of material topics are discussed by the Group's ESG experts, reported to the ESG Committee, and finally submitted to the Board of Directors for approval to ensure that the direction of sustainable operations and reported contents meet the concerns and expectations of internal and external stakeholders.
Steps for identification of material issues
Identification ↓
Communication
partner
In accordance with the five aspects of the AA1000 SES Stakeholder Engagement Standards, we send stakeholder identification questionnaires to ESG work team executives once every two years. They are sent out in the same year as the material issues analysis. After the statistical results are approved by the ESG Committee secretary and team leaders, five core stakeholder groups were determined based on the identification scores: employees, customers, government agencies, suppliers/contractors, and investors. 5 categories
Core Stakeholders
Collection
Issues
With reference to international sustainability norms and standards (GRI Universal Standards: 2021, SASB, SDGs, TCFD) and the Company's operating goals and vision, the task force compiled 28 positive/negative actual and potential sustainability issues. 28 items
Sustainable Issues
Analysis ↓
External impacts
Questionnaire surveys of core stakeholders were conducted in 2024, and issues were scored based on the extent of their positive and negative impacts. 594 feedbacks were issued and 455 valid responses were received. 455 copies
Valid External Questionnaires
Internal
impacts
CGPC conducted a questionnaire survey of internal unit officers and directors in 2024. Issues were scored according to the extent of positive and negative impacts and the likelihood of their occurrence. A total of 54 valid responses were received. Adjustments to the weight proportion were made based on the ques tionnaire results of the highest governance unit for statistical analysis. 54 copies
Valid Internal Questionnaires
Major
Analysis
The sustainability impact items on the economy, environment, and people (human rights) are included in the materiality analysis methodology. The EU concept of double materiality is used to analyze material issues, and the frequency of material issue analysis is once every two years. Based on the questionnaire analysis results, we sorted the material topics and selected 15 significant ESG issues. Based on the environmental, social, and governance aspects, we conducted a dual materiality analysis to narrow the issues down into 8 material issues. 15items
Significant Issues
Confirm
Material
issue
2024 material issues (climate change and energy management, air pollution prevention, water resources management, waste management, talent attraction and retention, talent development and cultivation, occupational safety and health, transportation safety management, economic performance, technology R&D, product quality and intelligent management, 8 in total), which were submitted to the ESG Committee for approval and reported to the Board of Directors. 8items
Material Issues


Major analysis
●
Positive Actual Impact
●
Positive Potential Impact
●
Negative Actual Impact
●
Negative Potential Impact
Possibility
Negative Potential Impact

4-5

Carbon fee imposition has led to increased production costs




Negative Actual Impact

3-1

Economic downturn leading to oversupply and weak demand

3-3

High increase in energy costs, particularly electricity tariff adjustments

3-4

Water usage fees imposition has led to increased production costs

3-7

Inadequate implementation of process safety management causing accidents
Scope of Significance Thresholds
Positive Potential Impact

2-1

Successful development of sustainable materials has contributed to revenue growth

2-2

Actively seeking alternative raw materials and supplies to reduce the use of scarce or highly polluting materials

2-3

Introduced intelligent systems and other advanced technologies to enhance efficiency and quality

2-4

Invested in renewable energy to achieve green power targets

2-6

Promoted a gender-equal workplace environment to improve employee retention Rates


Positive Actual Impact

1-1

Develop new products, diversify eco-friendly materials, and enter new industries

1-2

Introduce automated processes and systems to improve production efficiency and reduce production costs

1-3

Effective supply chain management enhances product quality

1-4

Invest in renewable energy to comply with regulatory requirements, reduce carbon emissions, and enhance industry competitiveness

1-5

Improved water recycling rate reduces production costs and lowers the risk of operational disruptions
Negative Impact Severity
Positive Impact

Selection of material topics
E1
Climate Change and Energy Management
E2
Water resources management
S1
Occupational safety and health
S2
Talent attraction and retention
G1
Economic performance
G2
Supply chain management
G3
Technology R&D
G4
Intelligent management

Economic performance

Occupational safety and health

Talent attraction and retention

Supply chain management

Water resource management

Intelligent management

Climate change and energy management

Technology research and development

Material issues and Management policy (SDGs)
    • ESG principles
      Stable Operation.
      The Significance and Impact of CGPC
      With the deterioration of the environment and ecology, shortage of energy and natural resources, exacerbation of climate change and stricter government laws and regulations, CGPC takes concrete actions to continuously promote and implement energy conservation, carbon reduction, and the development of green products to meet government requirements. Affected Parties: Government agencies, supply chains, communities, and employees.
      Develop Strategy
      Renovation and replacement of old equipment and Improve equipment efficiency in order to achieve the eco-friendly goals of low pollution and low energy consumption.
      Policy Commitment
      Reduce carbon emissions (Scope 1 and 2) by 27% in 2030 compared to 2017, long-term goal: carbon neutrality by 2050.
      Grievance Unit
      Engineering Department.
      SASB Indicator
      RT-CH-110a.1、RT-CH-110a.2、RT-CH-130a.1
      SDGs
      13.3、7.3
      Goals and Performance
      Project name
      GHG emissions
      Energy consumption per unit of core product CGPC PVC Resin
      Energy consumption per unit of core product TVCM VCM
      Energy consumption per unit of core product CGPCP PVC Resin
      Performance indications
      10,000 tons of CO2e
      GJ/ton
      GJ/ton
      GJ/ton
      2024 goal
      30.10
      2.46
      6.94
      2.12
      2024 result
      28.28
      2.46
      6.94
      2.12
      2025 goal
      27.44
      2.46
      6.96
      2.08
      2027 goal
      30.16
      2.44
      6.81
      2.04
      2030 goal
      29.97
      2.44
      6.67
      2.02
    • ESG principles
      Stable Operation.
      The Significance and Impact of CGPC
      Value water resources, reduce the consumption of water resources in the production process, and improve the reuse rate of water recycled to reduce the impact on the environment.
      Affected parties : employees, government agencies, community residents.
      Develop Strategy
      Implement ISO 46001 and ISO 14046 to reduce water waste, improve and replace water-consuming equipment and increase water recycling and re-use rate,Increase the water reuse ratio R2, and actively implement the plan to apply for water consumption reduction.
      Policy Commitment
      Starting from 2025, the annual R2 Water recycling rate will be increased by 0.4% (total of the three plants).
      Grievance Unit
      Public Utility Course
      SASB Indicator
      RT-CH-140a.1、RT-CH-140a.2、RT-CH-140a.3
      SDGs
      6.4、6.3、6.5、6.b、12.2
      Goals and Performance
      Project name
      Annual R2 water reuse rate increased by 1%
      Water intensity
      Performance indications
      %
      ton/ton
      2024 goal
      80.0
      3.00
      2024 result
      81.1
      3.60
      2025 goal
      81.0
      2.97
      2027 goal
      81.8
      2.91
      2030 goal
      83.0
      2.82
      Reason not achieved：Due to a significant decline in production volume.
    • ESG principles
      Social Inclusion.
      The Significance and Impact of CGPC
      Employees are the foundation of CGPC's sustainable development, so creating a happy workplace for employees is our long-term commitment. Affected objects: employees, community residents.
      Develop Strategy
      Value employees' rights and interests, promotion channels, and salary and benefits in line with the market.
      Policy Commitment
      Reduce employee turnover rate.
      Grievance Unit
      Personnel Section.
      SASB Indicator
      –
      SDGs
      8.5、4.4、8.2、8.3、8.7、8.8
      Goals and Performance
      Project name
      Employee turnover rate
      Performance indications
      %
      2024 goal
      ≦2.90
      2024 result
      2.90
      2025 goal
      ≦2.80
      2027 goal
      ≦2.80
      2030 goal
      ≦2.70
    • ESG principles
      Social Inclusion.
      The Significance and Impact of CGPC
      employees and contractors abide by the requirements of safety and health regulations and standards, build a zero-disaster work environment, and ensure a comprehensive system for workers' safety and health and achieve sustainable development. Affected objects: employees, community residents, government agencies, suppliers/contractors, investors.
      Develop Strategy
      The occupational safety and health policy of full participation is carried out in accordance with the ISO 45001　occupational safety and health management system for performance measurement and continuous improvement.
      Policy Commitment
      Zero disaster and zero disabling injury incident.
      Grievance Unit
      Occupational Safety Office
      SASB Indicator
      RT-CH-320a.1、RT-CH-320a.2、RT-CH-540a.1、RT-CH-540a.2
      SDGs
      3.9、8.8
      Goals and Performance
      Project Name
      Reinforce on-site patrol inspection and improve potential hazards
      Reinforce the prevention of scrolling and pinching injuries and safety management of stackers
      Performance indications
      Frequency of disabling injuries (F.R.)
      Severity of disabling injuries (S.R.)
      2024 goal
      0
      0
      2024 result
      0
      0
      2025 goal
      0
      0
      2027 goal
      0
      0
      2030 goal
      0
      0
    • ESG principles
      Stable operation.
      The Significance and Impact of CGPC
      It is the foundation of the Company's sustainable development, enabling shareholders to obtain reasonable return on investment and the Company to have sufficient resources to take care of employees. The Company also creates mutually beneficial and win-win relationships with clients, suppliers, and collaborating partners to facilitate the growth of both the society and the Company.
      Affected Parties: Directly impacts the Company and its employees; indirectly affects investors, customers, and suppliers.
      Develop Strategy
      Improve product value, provide customers with satisfactory service quality, and maintain stable profits and sustainable development of the enterprise.
      Policy Commitment
      Implement corporate governance and environmental protection measures for energy conservation and carbon reduction to create a workplace of wellness.
      Grievance Unit
      President's Office
      SASB Indicator
      –
      SDGs
      8.2、9.2
      Goals and Performance
      Project Name Risk management
      Performance indications Short-, Mid-, and Long-Term Goal Planning Achievement Status
      Short-term：
      Focus on immediate financial risks and market volatility to ensure liquidity.
      Mid-term：
      Adjust business models to maintain competitive advantage and ensure agility in responding to challenges.
      Long-term：
      Continuously monitor changes in laws and regulations to ensure corporate compliance, and assess the potential impact of policy changes on business operations.       		Through a comprehensive risk management mechanism, the Company strictly controls various risks and conducts regular risk assessments and improvements to maintain a stable and sound operational model.
    • ESG principles
      R & D and Innovation.
      The Significance and Impact of CGPC
      With a focus on innovation and resource optimization, CGPC is dedicated to developing a green supply chain, prioritizing environmental safety and energy conservation. Innovation extends beyond products to include upgrades in technology and service models, with R&D efforts closely aligned with market demands and customer feedback. Affected Parties: Government agencies, employees, investors, and suppliers.
      Develop Strategy
      Foster knowledge integration and information sharing between R&D, sales, and manufacturing departments to ensure seamless coordination across all processes. Optimize the use of R&D resources through more rational allocation and utilization. Reduce uncertainty in product development.
      Policy Commitment
      Adhere to legal and ethical standards by carefully evaluating the social, environmental, and consumer impacts of each new product and technology. Provide a better working environment to retain talent and maintain organizational vitality.
      Grievance Unit
      Processing Technology Section, Processing R&D Department
      SASB Indicator
      RT-CH-410a.1
      SDGs
      12.4、9.5、12.5
      Goals and Performance
      Project Name
      New Product development
      Performance indications
      Number of development projects
      2024 goal
      7
      2024 result
      15
      2025 goal
      10
      2027 goal
      10
      2030 goal
      12
    • ESG principles
      Stable Operation
      The Significance and Impact of CGPC
      As a leading domestic company, CGPC is committed to sustainable development. In this process, our operational strategies must consider the impacts and implications on both society and the environment. The Company also creates mutually beneficial and win-win relationships with suppliers, and thus collaborates with partners to facilitate the growth of both the society and Company. Affected parties: suppliers customers, employees, investors.
      Develop Strategy
      Enhance procurement performance, establish strong partnerships and foster a culture of safety awareness, creating a collaborative work environment and sharing the corporate social responsibility.
      Policy Commitment
      1.
      Improve the safety environment for workers and strive to protect the environment.
      2.
      Fulfill social responsibility and improve competitiveness.
      3.
      Enhance partnership and share sustainable business opportunities.
      4.
      Establish a supplier management mechanism to improve risk control and management capabilities.
      Grievance Unit
      Group’s Material Planning Department
      SASB Indicator
      –
      SDGs
      8.7、12.6
      Goals and Performance
      Project Name
      Existing supplier commitment Signing rate
      Local purchasing rate
      Performance indications
      %
      %
      2024 goal
      100
      ≥ 70
      2024 result
      100
      71.52
      2025 goal
      100
      ≥ 70
      2027 goal
      100
      ≥ 70
      2030 goal
      100
      ≥ 70
    • ESG principles
      Stable operation.
      The Significance and Impact of CGPC
      Improve equipment efficiency, and reduce the impact of production on the environment as much as possible to achieve the eco-friendly goals of low pollution and low energy consumption.
      Affected parties: employees, community residents, government agencies, customers, suppliers/contractors, investors.
      Develop Strategy
      Renovation and replacement of old equipment and Improve equipment efficiency to achieve the eco-friendly goals of low pollution and low energy consumption.
      Policy Commitment
      Enhancing operational safety, reducing accidents, minimizing resource consumption, building an intelligent factory.
      Grievance Unit
      Processing Technology Section, Processing R&D Department
      SASB Indicator
      –
      SDGs
      9.4、7.3
      Goals and Performance
      Project Name
      Introducing Intelligent Manufacturing Process
      AIOT Intelligence Manufacturing
      Performance indications
      Number of projects
      Number of projects
      2024 goal
      3
      3
      2024 result
      4
      3
      2025 goal
      4
      3
      2027 goal
      4
      3
      2030 goal
      5
      3
Stakeholder's Contact Person
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