¢m Sustainable Development Policy
Yieh Hsing follows the management philosophy "Innovation, growth, responsibility, and sustainability" by E United Group and takes "Make profit, strive for better, gain trust" as a guideline for management. Yieh Hsing has been committed to sustainable development since YH was first established. We value three perspectives of corporate governance, environment, and society and actively respond to issues that are concerned by the investors, government, employees, subcontractors, and community.
¢m Sustainable Development Committee
Yieh Hsing Enterprise "Sustainable Development Committee" Organization chart
Corporate Governance President's Office, Financial Div. |
Resource Management Production Div. at Gangshan and Pingnan |
EHS Management Industrial Safety & Health Room |
Product Responsibil Technology Div. |
Employee and Society Participation Human Resources & Administration Div. |
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Development Trend | Internal control, finance and accounting system, operation performance, risk management, financial communication, etc. | Energy saving, water saving, carbon reduction, waste reduction, etc. | Safety & health environment, disaster prevention, environmental responsibility, environmental organization communication, environmental audit and improvement, etc. | Quality ensurance, product environment consideration and design, product environment communication, product safety, technical patent, customer satisfaction, etc. | Manpower recruitment, talents cultivation, labor relations, employee caring, community participation, charity, etc. |
Management Regulations |
- International Financial Reporting Standards (IFRS) - Corporate Governance Best Practice Principles - Company Act |
- Energy Management System(ISO 50001) |
- Occupational Health and Safety Management Systems (ISO 45001 and CNS 45001) - Environmental management system (ISO 14001) |
- Quality management system(ISO 9001) - Product certification (PED¡BCNS) |
- Employee health promotion plan - Labor Act - Act of Gender Equality in Employment |
¢m Risk Management Policy and Pursuit
¢m Risk Management Organizational Structure and Responsibilities
01 | Board of Directors | The Board of Directors is the highest governance body for the risk management of the Company and is responsible for the approval of risk management policies and the system for managing critical risks. The Boards aims at compliance with applicable laws and the advocacy and pursuit of the overall risk management of the Company. This helps to assure the understanding of the risks confronting the Company in its operations and the effective management of risks. The Board assumes the ultimate responsibility for risk management. |
02 | Audit Committee | Review and evaluate the effectiveness of the internal control system of the Company to assure the effectiveness of the system and monitor the control of potential and existing risks of the Company. |
03 | Audit Office | Responsible for the examination of risk management to assure the effective implementation of internal control and conformity with regulations and control procedures currently in effect. |
04 | President and President's Office | The president is responsible for the establishment of the overall risk management system of the Company and supervision of the pursuit of risk control and coordination of operations. The President's Office assists the president in advocating and implementing the related risk management. |
05 | All functional departments and administering bodies | All function heads are responsible for identifying the risks they confront, implementing related risk management to control related risks within tolerance, and assuring the risk control mechanisms and procedures are carried out effectively. |
¢m Risk Management Procedures and Process Flow Chart
¢m Risk Management Types and Mechanisms
For the mitigation of the impact and influence of internal and external risks, the Company seeks to identify the risks deriving from the topics of governance, environment and society pertinent to the operations of the Company based on the principle of materiality, the business of the Company and the specific nature of the operations. Related management and monitoring measures are designed on the basis of this, and the status of risk management is routinely reviewed and reported to the Board. The types of risks and control mechanisms are summarized in the table below:
Aspect | Risk Items | Management Policy of Risk Items |
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Corporate governance and economy | Strategic and operational risk |
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Legal risk |
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Information and communication security risk |
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Financial risk |
Interest rate fluctuation
Exchange rate fluctuation
Material price fluctuation |
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Environment | Hazard risk |
Carbon emission management
Reduction of environmental pollution and energy consumption |
Society | Hazard risk |
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¢m Management Goal
Management Goal | 2022 Achievement Status | 2022 Key Outcome | 2023 Goal | Mid-Long Term Goal |
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No penalty from Environmental Protection Agency inspection. | Achieved | No deficiency in air, waste water, and waste audit. | Continue to follow up on additional and amended environmental regulations by the Environmental Protection Administration and demand 100% compliance in each plant. | Meet the environmental protection regulations and the goal is to do better than the requirement. |
No violation against the law. | Achieved | No violation against the law in 2022. | Competent Authority reviews updates in regulations regularly. Notification on new or amended regulations. Establish and update internal regulations in accordance with the amended regulations. | Regularly review domestic and oversea regulations distribution and update to avoid penalty and maintain good corporate image. |
Electricity saving rate reach more than 1% per year (2015~2024). | Achieved | Average annual power saving volume in Pingnan Plant: 1.34%. Average annual power saving volume in Gangshan Plant: 1.11%. | Average annual power saving volume 1%. | Continue to promote all kinds of electricity saving measures and keep the annual average power saving rate greater than 1%. |
No penalty from audit by Inspection Office. | Achieved | No deficiency in Safety and Health audit. | Continue to follow up on additional and amended safety and health regulations by the Council of Labor Affairs and demand for compliance with no disaster and no penalty. | Continue to promote Occupational Health and Safety Management System to meet the regulation requirements. |
¢m Economy
¢m Environment
Gangshan Plant Greenhouse Gas Emission
(ton CO2-e/year)
Pingnan Plant Greenhouse Gas Emission
(ton CO2-e/year)
¢m Society
¡° Disabling Severity Rate (SR) = Total days charged x 1,000,000 / Employee-hours of exposure.
¡° Disabling Frequency Rate (FR) = Disabling Injuries x 1,000,000 / Employee-hours of exposure.
"Excellent Award" by Steel & Iron Industries Association in occupational safety performance evaluation for rolling steel plant in December 2021.
"Excellent Award" by Steel & Iron Industries Association in occupational safety performance evaluation for pickling plant in December 2021.
"Improvement Award" by Steel & Iron Industries Association in occupational safety performance evaluation for Pingnan plant in December 2021.
"Excellent Award" by Steel & Iron Industries Association in occupational safety performance evaluation for rolling steel plant in November 2019.
TPM Excellence Award by JIPM in 2020.
Yieh Hsing Enterprise has ranked number 1 in the top 500 corporates by Veterans Affairs Council for assisting veterans on job employment in 2021.
¢m Analysis of Important issue
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Identification of communication targetsYIEH HSING set the agenda for the "identification and communication with stakeholders", thereby identifying "eight categories of stakeholders" through group discussion: "supplier, contractor, subcontractor", "employees", "central or local governments", "customer or traders", "community/local groups, media reporters", "non-profit organizations", "industry peer, academic researcher", and "shareholders". Over the years, there have been no significant adjustments of the overall structure and the "eight categories of stakeholders" will remain the first choice for communication under ESG. |
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Identification of ESG topicsThe same questionnaire that was adopted in September 2021 was sent to the executives of the Company on topics pertinent to the economic, social, and environmental dimensions. From the responses to the questionnaire, we selected 20 topics. |
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Investigation of the level of concernThe same questionnaire of the 20 topics on sustainability as was used in October 2021 was sent to the eight categories of stakeholders to request a response. The questionnaire is a survey on level of concern of the stakeholders. We received a total of 104 responses from employees (37 responses), suppliers or contractors, subcontractors (26 responses), customers or traders (26 responses), central or local governments (2 responses), shareholders (7 responses), industry peers, academic researcher (1 response), non-profit organizations (1 response), and community/local groups, media reporters (4 responses). |
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Measurement of the impact on operationsWe also sent out 26 copies of the same questionnaire as was used in October 2021 to the executives of the middle and senior management to measure the influence and degree of impact of the 20 topics on the organization. |
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Confirmation of material topicsThe findings from the 130 respondents of the above questionnaire survey on the level of concern and the degree of impact on the operations allowed for the identification of six material topics in 2021, which was almost the same in 2022, so no changes were made. The six material topics in the top right corner of the Material Topics Diagram are: 2. Workplace diversity and equality; 3. Occupational safety and health; 4.Employee benefits and salary; 5. Talent recruits and retains; 15. Environmental policy/management system; 18. Waste management. |
Society | Economy | Governance |
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1.Labor relation | 8.Corporate governance | 14.Energy management |
2.Workplace diversity and equality | 9.Operational and financial performance | 15.Environment policy/management system |
3.Occupational safety and health | 10.Customer service management | 16.Supplier management |
4.Employee benefits and salary | 11.Risk management | 17.Water resource consumption and waste discharge control |
5.Talent recruits and retains | 12.Information/Network security | 18.Waste management |
6.Career development and education training | 13.Product quality and innovative and development | 19.Air pollution control |
7.Community participation and social welfare | 20.Climate change response |
¢m Important Issue Picture
Important Issue | Importance on Yieh Hsing Enterprise operation | Impact boundary of value chain Direct Indirect |
Corresponding Chapter |
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Upstream | Yieh Hsing | Downstream | |||
Workplace diversity and equality | A good labor relationship can improve employee communication and coordination and strengthen team building. Various learning resources are provided to inspire employees' potential and their professional competence. | 7.2.1 | |||
Occupational safety and health | Employees are important asset. Ensure a safe working environment can avoid potential costs and risks caused by occupational hazards. | 7.4 | |||
Employee benefits and salary | Providing a complete salary system, welfare measures, and a safe working environment can help the employee reach his full potential and contribute to the corporate. | 7.2 | |||
Talent recruits and retains | The employee is not only the company's important asset but also a partner that grows together. Put the right person in the right place to make the most of every talent. |
7.1.2 7.2.3 |
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Environment policy/management system | Actively promote environmental management. Continue to improve the manufacturing process and operational environment to fully implement pollution prevention and to ensure the operation of equipment. | 5.1 | |||
Waste management | Make sure wastes by Yieh Hsing Enterprise are taken care of properly. No violation was found in the waste handling vendor to comply with the authority's requirement. | 6.3 |