Risk Management
The Company passed the Risk Management Rules in December16th 2020, which stipulated our risk management policies and identified risks, assessed risks, controlled risks, supervised risks, communicated risk information,and reported risk management processesto strengthen employees' perception of risks and contain the risk within an affordable level, and targeted to secure the integrity, feasibility, and the benefits of risk management.
The Structure of the Company's Risk Management Organization
The Scope of the Company's Risk Management
The risk management scope includes strategies, operation, finance, information security, law compliance, and the climate change. Detailed illustrations are listed in the article no 3. of the Code of Risk Management. Based on the scale of impacts,the ESG subjects are listed and evaluated as follow as well as the formulated management strategies.
| Issues | Evaluation Subjects | Risk Management Strategies |
|---|---|---|
| Environment | Climate Change | To respond to the global trend, we will analyze the risks and opportunities brought by the climate change, and take responsible actions as well as operate in better efficiencies to meet the goal of low carbonation economy transformation |
| Water Management |
1.Implement water and power saving projects to reduce the consumption and costs in power and water. 2.Install water recycling and purifying systems to reduce the water consumption in pure water production system. 3.Evaluate the introduction of recycling water from systems to increase the water supply. |
|
| Greenhouse Gas Emission Management |
1.Hold the monthly power management meeting to enhance the technologies of power saving. 2.Set short term, mid term, and long term targets for carbon emissions and continuously implement power saving projects to strengthen the power consumption efficiency. |
|
| Power Management |
1.Set the targets for environmental management and rewards for the proposals to enhance power consumption efficiency. 2.Set the power management organization and hold monthly meetings to handle relevant issues. Also conduct intemal audit for power saving. 3.Keep replacing utility and manufacturing equipment to improve power consumption. |
|
| Air Pollution Management |
1.Isolate and categorize waste gases from production and install equipment to process the gases. 2.Install UV-C reaction tower to enhance the process for smell and VOC. Also install alarm system in scrubbers to instantly improve the system and stability of waste gas processes. 3.Impalement patrol and maintenance to ensure equipment is well-functioned. |
|
| Waste Management |
1.Dedicated to reducing waste, widely deploying recycling stations within campus, and improving manufacturing processes. 2.Reduce the waste from the manufacturing, use recycled resources, and reuse wastes to enable material recycling. |
|
| Social | Human Rights | CEO signed human right policies and we follow the laws and rules of global and the place we operate. We strive to achieve equality, discrimination free and harassment free workplace, and respects of individual privacy, as well as employer and employee communication channel and appeal system development to ensure the rights of employees. |
| Human Resources and Development |
1.Increase the recruitment efficiency by actively participating campus activities, providing summer intenship, collaborating with schools, and offering scholarship. 2.Provide stable and excellent compensation package, arrange comprehensive trainings, and encourage employees to obtain licenses and certifications. For whom is outstanding, promotion will be offered. |
|
| Safety and Health |
1.Build a safe and hygiene work environment, identify hazards and evaluate risks, implement emergency drills to lower the risks of occupational injuries. 2.Implement health check for employees with high risks, and base on the result, we will categorize, manage, and track. 3.Care about the employees' diet, nutrition, and health, and offer related courses and activities to build healthy work place. 4.Plan and arrange precautions for pandemic to take care of employees' health and ensure smooth operations. |
|
| Participation in Communities and Feedbacks | Dedicated to reciprocating the society and fulfilling social responsibilities. Encourage employees to promote frendly relations with the neighborhood. | |
| Govemance | Strategic Operations | Continue to develop high value products, maintain close relationship with clients and suppliers, and improve quality to achieve company sustainability. |
| Integrity | Stipulate moral codes and develop adequate corporate governance and risk management mechanism to evaluate the risk of dishonest behaviors. Implement ethical management policies according to the rules we made. | |
| Board Enhancement | Formulate board diversification policies and arrange subjects for board members to leam as well as provide latest information about regulations, ESG, industry development, and policies. Also provide insurance for board members to mitigate the risks that damaging the Company. | |
| Law Compliance | Strictly demand every action obey the law and respond to changes in laws in time. Set up a department to be in charge of concluding the format of contracts and arranging compliance trainings to lower the risks of violating the law. |
Risk ManagementOperating Status
The company's
"Risk Management Measures"
were approved by the board of directors on December 16, 2020.
The company has the general manager as the convener and the deputy general manager as the deputy convener.
Weekly meetings are held to review and evaluate the company's operating conditions, including various risk issues such as strategic risk,
operational risk, financial risk, hazard risk, information security risk and Other risks.
Monthly meeting are held to review environmental protection and energy conservation meetings to track energy conservation,
carbon reduction and climate change-related goals, and regularly report the tracking results to the chairman of the board.
Arrange to report risk management operations to the board of directors at least once a year.
The latest report date is May 23, 2023. The long-term strategic goals of climate change, energy saving and carbon reduction strategies,
medium and long-term vision, annual energy saving, carbon reduction performance and risks management ,
and other ESG sustainable development business operations have been reported to the chairman of the board.
In response to the world's climate change issues, the company published the TCFD report in May 2023.
In addition to identifying 5 TCFD-related risks, TCFD-related opportunities,
with the four major TCFD structures: "Governance" and "Strategy" , "Climate Change Risks and Opportunities Management", and "Indicators and Targets"
clearly disclose the company's strategies and actions in response to climate change in the report.
In addition to continuing general risk management operations in 2023, the company has implemented several risk management projects related to climate change,
energy management, industrial safety, circular economy, information security, exchange rate fluctuations, and legal changes.
Meanwhile, ESG report and stakeholder engagement communication report have been published.