Sustainable Development Implementation Status

Implementation Item
 Implementation Status Deviations from “Sustainable Development Best Practice Principles for TWSE / TPEx Listed Companies” and Reasons
Yes No Abstract Explanation
1.Whether or not the Company establishes a governance framework and sets up a dedicated (concurrent) unit that promotes sustainable development; whether or not senior management is  delegated by the Board of Directors to deal with sustainable  development issues and the supervision of the Board? V   The Company designates the Finance & Accounting & Business Management & HR Division Group as the responsible unit for promoting corporate sustainable development. On September 24, 2021, the Board of Directors formulated the Company’s Sustainable Development Best Practice Principles, and authorized the Chairman or his/her designee to propose and implement corporate social responsibility policies, systems or related management guidelines and specific promotion plans, and to conduct risk assessments of environmental, social or corporate governance issues related to the Company’s operations in accordance with the material principles. The implementation results for year 2023 were reported to the Board of Directors on February 20, 2024, so that the Board could supervise and assist the management team in practicing the corporate social responsibility to promote sustainable performance. No significant difference compared to Sustainable Development Best Practice Principles for TWSE / TPEx Listed Companies
2.Does the Company assess ESG risks associated with its operations based on the
principle of materiality, and establish related risk management policies or strategies?		 V  

The Board of the Company has established Risk Management Policy and Procedures to regularly review the risks related to finance, laws and regulations, climate change, water and electricity resources, industrial supply chain, cyber security and occupational safety and health, so as to improve its competitiveness in the industry.
The risk management process mainly includes risk identification, risk assessment and risk response.

Risk identification: identifying relevant risk items according to laws and regulations, industrial standards and international development trends.

Risk assessment: comprehensive consideration of the severity and frequency of the risk.

Risk response: formulating control measures and response plans according to the degree of risk. The criteria for evaluating control plans generally include the effectiveness, feasibility and cost.

 No significant difference compared to Sustainable Development Best Practice Principles for TWSE / TPEx Listed Companies
3. Environmental issues

(1)Does the Company establish proper environmental management systems based on the characteristics of their industries?

 V   (1)1. In compliance with relevant domestic environmental protection regulations and ISO14001 Environmental Management Systems guidelines, the Company conducted the first verification of the ISO14001:2018 Environmental Management Systems in October 2020, successfully passed the BSI verification audit, and obtained the ISO14001:2018 Environmental Management Systems certificate. Subsequently, it will accept the audit and verification by the certification body regularly every year to maintain the validity of the certificate. Passed the annual certification in August 2023, with the certificate valid until the end of August 2024.
2.The Company holds regular Safety and Health Committee and environmental management review meeting every quarter, and continues to strive to minimize environmental impact and achieve environmentally friendly goals.		 No significant difference compared
to Sustainable Development Best Practice Principles for TWSE / TPEx Listed Companies

(2)Does the Company endeavor to utilize energy resources more efficiently and use renewable materials which have low impact on the environment?

 V   (2)The Company has been reducing the discharge of environmental pollutants from source through machine design, technology improvement, continuous parameter adjustment and optimization, and promotion of raw material consumption reduction and recycling. For example: in 2023, the total weight of general industrial waste disposal was 12.713 metric tons, while the total weight of recycling was 5.56 metric tons. The main types of recycled waste were paper and plastic, with a total recycling rate of 42.97%; The raw material cesium iodide was operated in a circular economy in 2023. The total weight of recovered and purified cesium iodide was 2.25 tons, and the unpurified residue was 0.25 metric tons. The purification recovery rate was 90%. We continue to be committed to minimizing environmental impact and achieving environmentally friendly goals.

(3) Does the Company evaluate potential risks and opportunities brought by climate change, and take response measures to climate-related issues?

 V   (3)The Company refers to the TCFD proposal report framework and uses eight aspects including “revenue”, “direct cost”, “indirect cost”, “capital expenditure”, “capital acquisition”, “asset value”, “premium” and “liability” to summarize potential financial impact risks. As of now, TCFD is still under analysis and will be disclosed in 2024 Sustainability Report.

(4)Does the Company compile statistics of greenhouse gas emissions, water use, and total weight of waste in the past two years, and does it establish policies for energy conservation, carbon reduction, greenhouse gas emission reduction, water use reduction, and other waste management?

 V  

(4)1. The Company’s greenhouse gas inventory sets 2021 as the base year. The greenhouse gas inventory description is as follows:

(1) The greenhouse gas emissions in 2021 were 4,112.66 metric tons of CO2e, and the sales intensity was 2.12 metric tons of CO2e/NT$ million of revenue, mainly from indirect power emissions in Scope 2, accounting for 79.67% of the previous emissions. This was followed by emissions from electricity purchased in Scope 3, accounting for 14.65% of the previous emissions. The data covers Scope 1, Scope 2, and Scope 3 of the Company’s Taiwan plant (excluding overseas subsidiaries and offices).
(2) The greenhouse gas emissions in 2022 were 4,602.9229 metric tons of CO2e, and the sales intensity was 2.44 metric tons of CO2e/NT$ million of revenue, mainly from indirect power emissions in Scope 2, accounting for 80.49% of the previous emissions. This was followed by emissions from electricity purchased in Scope 3, accounting for 13.95% of the previous emissions. The data covers Scope 1, Scope 2, and Scope 3 of the Company’s Taiwan plant (excluding overseas subsidiaries and offices).

2. Water consumption: The Company mainly uses water for product and equipment cleaning. In the future, it will continue to evaluate the increase in the use of equipment circulating water and the improvement of equipment water efficiency to save water resources. According to statistics, water consumption used in manufacturing has been very small in recent years. In 2023, water consumption was only 167 tons.

3.Waste management instructions are as follows:

(1) In order to fulfill its waste management responsibilities, the Company not only reports monthly waste storage and output status, but also conducts on-site audits of waste removal, processing and reuse manufacturers every year to ensure that waste manufacturers comply with regulations.
(2) The Company audits manufacturer entry control, waste storage area management, operation of waste treatment equipment and pollution prevention and control facilities, on-site operation safety management and operating conditions, and determines the possibility of subsequent cooperation based on the audit results.
(3) For the selection of new manufacturers, the Company uses the stability of financial operations, whether they have relevant licensing qualifications, and past violation records as evaluation criteria to ensure the quality of waste processors.
(4) In 2023, the total weight of waste was 12.938 metric tons, of which 12.713 metric tons were general industrial waste, accounting for 98.26%;hazardous industrial waste was 0.225 tons, accounting for 1.74%. The waste was mainly processed by qualified waste-cleaning operators
(5) In 2023, the total weight of waste recycling was 5.56 metric tons, all of which were general industrial waste. The types of recycling were paper and plastic, with a total recycling rate of 42.97%.
(6)The raw material cesium iodide was operated in a circular economy in 2023. The total weight of recovered and purified cesium iodide was 2.25 tons, and the unpurified residue was 0.25 tons. The purification recovery rate was 90%
4.Social issues

(1)Does the Company formulate appropriate management policies and procedures according to relevant regulations and the International Bill of Human Rights?

 V   (1) The Company formulates relevant employee codes in accordance with labor standards law, employment service law and gender work equality law, etc. to protect the rights and interests of colleagues. Committed to protecting human rights. In 2023, the policy of human rights and diversity and inclusion was proposed , supporting and respecting relevant international labor rights norms, including the Universal Declaration of Human Rights (UDHR), the United Nations Global Compact (Global Compact), the United Nations Guiding Principles on Business and Human Rights (UNGPs), and the International Labor Organization (ILO) and Code of Conduct – Responsible Business Alliance (RBA), following local laws and regulations and the spirit of international human rights standards, formulates human rights protection and labor-related norms, establishes a corporate culture of equal opportunities, and publishes them on the Company’s website.  No significant difference compared to Sustainable Development Best Practice Principles for TWSE / TPEx Listed Companies

(2)Does the Company have reasonable employee benefit measures (including salaries, leave, and other benefits), and do business performance or results reflect on
employee salaries?

 V   (2) The Company provides employees with work and life leave plans, festive bonuses, and group insurance. It also plans a competitive salary level. In addition to considering the external competitiveness and internal fairness of salary and benefits, it also has an overview of the Company’s financial and operating conditions. The industry’s annual salary adjustment strategy and personal work performance, improve the planning and execution of annual salary adjustment operations, design and issue incentive bonuses to motivate and retain outstanding talents.

(3) Does the Company provide a healthy and safe working environment and organize training on health and safety for its employees on a regular basis?

 V   (3) 1. The Company has dedicated safety and health management personnel responsible for drafting occupational safety and health management plans, promoting the identification, evaluation and control of work environment and operational safety, and other safety and health management matters. The Company has set up an Occupational Safety and Health Committee, which meets regularly every quarter to discuss occupational safety and health issues, and employees can also participate in the discussion of occupational safety and health issues through labor representatives, so that the implementation of occupational safety and health policies can most fit for the needs of employees on site, thus achieving the purpose of safety and health of all employees.
2. The Company has passed the ISO45001 and TOSHMS certifications and obtained certificates in 2020. It continued to undergo annual verification and audit qualifications in August 2023 to maintain the validity of the certificate, which remains valid until the end of August 2024.
3. The Company pursues the vision of zero occupational hazards and is committed to ensuring that the working environment meets safety standards and that personnel are not harmed at work, implementing the Company’s commitment to building a safe and healthy workplace and aligning with the United Nations’ sustainable development goals. In 2023, the frequency of disabling injuries and the severity of disabling injuries were zero, achieving the goal of zero occupational accidents in the same year.

(4)Does the Company provide its employees with career development and training sessions?

 V   (4) Based on the “medical device regulatory requirements” and the “cognition education” thought, the Company plans a sound certification development framework, and vertically promote relevant courses with professional and management function certifications as the cornerstone, and then promote various departmental trainings horizontally. In accordance with the Company’s operational strategy, we also provide internal / external training channels, such as language learning, E-book learning, on-the-job training and other talent development networks, to enhance the professional knowledge and skills of our employees and achieve the Company’s goals and diversified education and training paths required. We also offer a series of courses on digital transformation, according to the learning blueprints of different targets, and cooperate with academic institutions to introduce online and physical learning courses to enhance the intelligent thinking of employee, continue to increase and strengthen the overall competitiveness of employees and organization in response to the AI wave of Industry 4.0 and the integration of cross-domain management talents and technology leaders.

(5)Does the Company comply with relevant regulations and international standards in customer health and safety, customer privacy, and marketing and labeling its goods and services etc., and has it established consumer rights protection policies and complaint procedures?

 V   (5) The Company has established operating principles that are customer-oriented and through means of telephone calls, email exchanges and face-to-face meetings, we are able to have solid grasp of customers’ needs so as to formulate improvement strategies to respond to customers in a timely manner. The Company has also established customer service related procedures to ensure that all customer needs can be properly responded to.

(6)Does the Company have a supplier  management policy, require suppliers to comply with regulations on environmental protection, occupational safety and health, and labor rights, and what is its implementation status?

 V   (6) The Company has established a Supplier Code of Conduct Statement, which requires suppliers to comply with the Code in all business activities, including labor, health and safety, environment, business ethics and management system, and to fully comply with the laws and regulations of the countries / regions where they operate. In addition, the Company will conduct regular audits, and the audit results are an important factor for the Company to make decisions. 
5. Does the Company reference internationally  accepted reporting standards or guidelines, and prepare reports that disclose non-financial information of the Company, such as ESG reports? Do the reports above obtain assurance from a third party verification unit?   V The Company collaborates with the competent authorities  to promote the policy of “Corporate Governance 3.0 – A Blueprint for Sustainable Development” to collect information and preparing the 2023 Sustainability Report. The report exceeds regulatory requirements but has not yet been confirmed by a third-party assurance unit.  

6. If the Company has established the Sustainable Development Best Practice Principles based on “Sustainable Development Best Practice Principles for TWSE / TPEx Listed Companies”, please describe any discrepancy between the Principles and their implementation:
       The Company has established the Sustainable Development Best Practice Principles based on “Sustainable Development Best Practice Principles for TWSE / TPEx Listed Companies”, and its related operations are disclosed on the Company’s website and the Market Observation Post System. All employees and affiliates of the Company are required to comply with these regulations, which have no significant difference compared to Sustainable Development Best Practice Principles for TWSE / TPEx Listed Companies.

7.Other important information to facilitate better understanding of the Company’s sustainable development implementation: 
         To fulfill the social responsibilities of the enterprise, and give play to the enterprise’ active value to the environment and population, we continued to participate in social welfare activities, for example, in February, we held “Chiayi Aogu Wetland × Parent-child Environmental Education Activity”, and in March, together with InnoLux Corporation, we held Children’s Day activities for rural primary school in Chiayi County, and jointly contributed 10,000 pieces of COVID-19 rapid-screening reagents to them, and in November , we participated in the public welfare activity “Beimen Shuangchun Beach Cleaning Activity” that made teaching through lively activities. Furthermore, the “Southwest Coast Ten Thousands People Action X-ray Early Lung Cancer Screening Project” initiated by use together with National Cheng Kung University School of Medicine also continues to this year, which will use the dual-energy X-ray flat panel sensor module manufactured by the Company together with the mobile X-ray vehicle, to assist with early screening of lung cancer in various townships, towns, cities and regions, so as to continue to make contribution of promoting health of the mass.