Stakeholders and Material Topics

Identification of Material Topics

To effectively identify ESG material topics relevant to Everlight Chemical, we referenced the process to determine material topics suggested in the latest GRI Standards (2021) to assess and manage our actual and potential impacts on the environment, economy and people (including human rights) under each topic.

Impact Management Mechanism

The Board of Directors is the highest governance body responsible for overseeing and deliberating on Everlight Chemical’s management of sustainability impacts and material topics. The Risk Management Committee and Audit Committee are also in place for preventing and mitigating actual and potential risks and impacts. Based on all the potential issues collected, the ESG Committee utilized questionnaires and interviews with department managers to conduct impact assessment, including identifying positive/negative impacts and ranking the topics by priority.

Process to Determine Material Topics

In accordance with the GRI Standards (2021), we followed four steps to identify material topics and assess the significance of impacts. The process is outlined below:

Process

Description

1.

Identify stakeholders

Every two years, Everlight Chemical conducts stakeholder identification and survey on stakeholder interests in terms of material topics. The latest stakeholder identification was conducted in 2021 based on the five principles of the AA1000 Stakeholder Engagement Standard (AA1000SES). We identified seven groups of stakeholders: shareholders/investors, customers/brand owners, employees, suppliers/contractors, nearby communities, government agencies and banks. In 2022, the ESG Committee resolved that no change was needed to the seven categories of stakeholders.

2.

Source of potential material topics

We developed a list of 15 sustainability topics for further materiality assessment based on international ESG trends, GRI Standards, SASB Standards for the Chemicals industry, requirements of international ESG rating institutions and the TWSE Corporate Governance Evaluation for Listed Companies by the Financial Supervisory Commission (FSC). The topics include: 1. Business Performance, 2. Innovative Research and Development, 3. Customer Relationship and Marketing Development, 4. Organizational Resilience, 5. Regulatory Compliance, 6. Digital Transformation and Information Security, 7. Product Responsibility, 8. Supply Chain Management, 9. Labor Relations, 10. Occupational Safety and Health, 11. Equal Human Rights, 12. Community Engagement, 13. Environmental Resource Management, 14. Pollution Prevention, and 15. Climate Change Response.

3.

Survey on stakeholder interests

In July 2021, through various channels of communication and using online questionnaires, we conducted a comprehensive survey to capture stakeholders’ interests on the potential material topics. A total of 180 questionnaires were distributed, and 151 were completed and returned, representing a survey response rate of 83.8%.

4.

Assess the significance of impacts on the economy, environment, and people (including human rights)

We interviewed department managers and distributed 30 questionnaires to assess the scope and degree of involvement in the positive and negative impacts, assessing the scale and likelihood of impacts under each topic.

5.

Assess the impact of sustainability topics on Everlight Chemical’s operations

Besides assessing the Company’s impacts on the economy, the environment, and people (including human rights), we also evaluated the level of impact the sustainability topics could have on the Company’s operations, including both actual and potential impacts.

6.

Determine material topics

Based on the level of stakeholder interests and the significance of impacts under each topic, we mapped out a materiality matrix and, in the order of priority, determined on six material topics for management and reporting. The topics include: Regulatory Compliance, Occupational Safety and Health, Pollution Prevention, Product Responsibility, Customer Relationship and Marketing Development, and Organizational Resilience.

7.

Analyze how the material topics relate to UN SDGs and devise performance indicators

Four UN Sustainable Development Goals (SDGs) were selected based on relevance: #6 Clean Water and Sanitation, #7 Affordable and Clean Energy, #12 Responsible Consumption and Production, and #13 Climate Action.

8.

Confirm on material topics for reporting and corresponding management approaches and performance indicators

Devising performance indicators: Based on our latest assessment of positive/negative impacts and due diligence in response to the updated GRI Universal Standards (2021), we added a new material topic, Customer Relationship and Marketing Development, to demonstrate Everlight Chemical’s commitment to high-quality sustainable products and green chemistry practices.




In response to the GRI Standards update, SASB standards, the Task Force on Climate-Related Financial Disclosures (TCFD) recommendations and net-zero emissions trends, we selected a total of 18 key performance indicators, including newly added metrics like fines incurred, frequency-severity indicator (FSI), share of revenue from sustainable products, progress on implementing a process safety management (PSM) system, product quality level (σ), share of sales revenue from new products, customer satisfaction, employee turnover rate, monthly availability rate of critical information systems and network services, on-time delivery rate, share of mid/high-risk suppliers, number of mid/high-level risks addressed, etc.

Based[1]  on these indicators, we have developed action plans and follow-up mechanisms, assigning tasks and responsibilities across functions and departments, with the aim to enhance our positive contribution to the economy, environment and people and mitigate negative impacts.

2022 List of Material Topics

Stakeholder Identification

Referencing the AA1000 Stakeholder Engagement Standard (AA1000SES) and practices of leading companies, and through numerous meetings and discussions, Everlight Chemical has identified seven key stakeholder groups. Our stakeholder identification process is as follows:

Step 1

Each business unit and division submits a list of potential stakeholders based on their respective operations.

Step 2

The executive secretary of the ESG Committee compiles the information and creates an Overview of Identified Stakeholders to be presented to the ESG Committee for discussion.

Step 3

Based on results of committee meetings, main stakeholder groups were selected and prioritized by significance.
Everlight Chemical has identified seven groups of stakeholders, as outlined below:
Description & Significance of Key Stakeholders

Shareholders/Investors

Providers of working capital for the Company

Customers/Brand Owners

Purchaser of the Everlight Chemical’s products who also negotiate the terms of delivery and coordination needed from us

Employees

Those who carry out the Company’s day-to-day operations. Employees are key internal stakeholders

Suppliers/Contractors

Suppliers of raw materials, components or equipment or contractors engaged by the Company to perform construction or maintenance projects. Resources and services from these stakeholders enable each part of our business to function smoothly

Nearby Communities

Organizations near our production facilities, including nearby factories, schools, communities, industrial park service centers, etc.

Government Agencies

Competent authorities relevant to our business (e.g., central government agencies, city and county governments, fire stations, police departments, government agencies related to labor or environmental safety, the Financial Supervisory Commission, etc.)

Banks

Financial institutions that provide financing for the Company

Stakeholder Engagement

We engage with our stakeholders through diverse channels of communication and interaction to gather feedback and suggestions for improvement. The following table summarizes our stakeholder engagement in 2022.
Stakeholder Engagement in 2022
(An overview of stakeholder engagement was presented to the board on Aug 11, 2022)
Material Topics Survey
Stakeholder
Topic of Interest
Channel and Frequency of Communication
Implementation in 2022

Shareholders/
Investors

  • Business operation and profitability
  • Corporate governance
  • Operational strategy
  • Investment plans
  1. Annual reports and annual general meetings (annual)
  2. Company website and the Market Observation Post System of TWSE (year-round)
  3. Investor hotline and mailbox (year-round)
  4. Investor conferences (2 times/year)
All communication frequencies and goals were achieved.
We have complied with all regulatory requirements: issuance of an annual report, holding shareholders meetings and investor conferences.

Customers /
Brand Owners

  • Business operation and profitability
  • Green innovation and green products
  • Environmental responsibility
  1. Customer satisfaction survey (annual)
  2. Client visits and/or audits (ad hoc)
  3. Dealer conferences (annual)
  4. Company website, phone line and email communications (year-round)
All communication frequencies and goals were achieved. We have passed all customer/brand owner audits and inspections in 2022, and have earned a firmwide customer satisfaction score of 90 (vs the target of > 88). Key accomplishments:
(1) Each business unit held their annual dealer conference and also arranged client visits.
(2) We provided clients with documentation on our ESG practices and allowed for on-site inspections by clients.
(3) We continued to do our best in fulfilling customer needs and creating value with customers.

Employee

  • Business operation and profitability
  • Employee benefits and protection
  • Working conditions
  1. Internal meetings (labor consultations, manager meetings, monthly meetings, etc.)
  2. Internal committees (for occupational safety and health, meal services, anti-sexual harassment, etc.)
  3. 1-1 meetings or satisfaction surveys (annual)
  4. Employee mailbox and public announcement bulletin
  5. Welfare committee meetings (quarterly)
Internal meetings were held (including regular monthly meetings, monthly meetings of the Environment, Health Safety (EHS) Committee, ad-hoc manager meetings, ad-hoc labor- management consultation meetings, etc.) to communicate important information. Managers also discussed career development prospects with employees and provided necessary support at the semiannual performance review meetings.

Suppliers/
Contractors

  • Supplier management
  • Environmental management
  • Business integrity
  1. Supplier visits and/or audits (ad hoc)
  2. Supplier training
  3. Company website, phone line
  4. Email communications (year-round)
For supplier management, we conduct supplier surveys annually based on the risk profile (high-, mid- and low-risk), product category (raw materials, equipment) and level of business relationship (critical/major/new suppliers) of our suppliers. For the survey results, please refer to the Supply Chain Management section of our sustainability report or our official website.

Nearby Communities

  • Environmental responsibility
  • Social welfare
  1. Personnel visits (ad hoc)
  2. Participation in community meetings
  3. Participation in community activities
1. Active participation in community activities and local visits Each plant assigned dedicated personnel to regularly pay visits to local borough chiefs (generally on a quarterly basis). We also actively participated in/assisted with community disaster prevention efforts, donated pandemic relief supplies, participated in the river adoption program, held beach cleanup days, and supported local elementary and high schools through donations. In 2022, a total of 98 community consultations were conducted. Topics of discussion included: industrial safety (fire prevention), air quality, waste management, sponsorship for community activities/school clubs, emergency response drills of mutual-aid groups, tree adoption program, etc. All units engaged in meaningful communication and have taken practical measures to address related concerns. 2. Community Satisfaction Survey In the fourth quarter of 2022, we conducted our first plant-level Local Community Satisfaction Survey, recording a satisfaction rate of 95.2% from 29 samples. All questions related to corporate image received high scores (9.7 out of 10), while questions related to waste management at related facilities received a relatively lower score (9.1 out of 10). Each plant will continue to communicate with neighboring communities the Company’s efforts in environmental protection.

Government Agencies

  • Corporate governance
  • Environmental responsibility
  • Labor relations
  1. Participation in info sessions and educational activities
  2. Participation in symposiums and seminars
  3. Fulfilling filing and reporting duties and complying with on-site inspections
  4. Communication via official correspondence and phone

Everlight Chemical assigned representatives to participate in all relevant government info sessions and activities to understand actions needed on the Company’s end. Besides fulfilling legal reporting duties and allowing inspections across business divisions, we also proactively sought guidance from competent authorities through phone calls or in-person visits.

Banks

  • Business operation and profitability
  • Corporate governance
  1. Personnel visits (ad hoc)
  2. Company website (ad hoc)
  3. Phone communication (ad hoc)
We regularly communicated with banking personnel, usually through phone calls, to ensure effective communication.

Shareholders/ Investors

Topic of Interest:

  • Business operation and profitability
  • Corporate governance
  • Operational strategy
  • Investment plans
Channel and Frequency of Communication：
  1. Annual reports and annual general meetings (annual)
  2. Company website and the Market Observation Post System of TWSE (year-round)
  3. Investor hotline and mailbox (year-round)
  4. Investor conferences (2 times/year)
Implementation in 2022:
 All communication frequencies and goals were achieved.
We have complied with all regulatory requirements: issuance of an annual report, holding shareholders meetings and investor conferences.

Customers / Brand Owners

Topic of Interest:

  • Business operation and profitability
  • Green innovation and green products
  • Environmental responsibility
  • Labor relations
Channel and Frequency of Communication：
  1. Customer satisfaction survey (annual)
  2. Client visits and/or audits (ad hoc)
  3. Dealer conferences (annual)
  4. Company website, phone line and email communications (year-round)

Implementation in 2022:
All communication frequencies and goals were achieved.

We have passed all customer/brand owner audits and inspections in 2022, and have earned a firmwide customer satisfaction score of 90 (vs the target of > 88).
Key accomplishments:
(1) Each business unit held their annual dealer conference and also arranged client visits.
(2) We provided clients with documentation on our ESG practices and allowed for on-site inspections by clients.
(3) We continued to do our best in fulfilling customer needs and creating value with customers.

Employees

Topic of Interest:

  • Business operation and profitability
  • Employee benefits and protection
  • Working conditions
  • Labor relations
Channel and Frequency of Communication：
  1. Internal meetings (labor consultations, manager meetings, monthly meetings, etc.)
  2. Internal committees (for occupational safety and health, meal services, anti-sexual harassment, etc.)
  3. 1-1 meetings or satisfaction surveys (annual)
  4. Employee mailbox and public announcement bulletin
  5. Welfare committee meetings (quarterly)
Implementation in 2022:
Internal meetings were held (including regular monthly meetings, monthly meetings of the Environment, Health Safety (EHS) Committee, ad-hoc manager meetings, ad-hoc labor- management consultation meetings, etc.) to communicate important information. Managers also discussed career development prospects with employees and provided necessary support at the semiannual performance review meetings.

Suppliers/Contractor

Topic of Interest:

  • Supplier management
  • Environmental management
  • Business integrity
Channel and Frequency of Communication：
  1. Supplier visits and/or audits (ad hoc)
  2. Supplier training
  3. Company website, phone line
  4. Email communications (year-round)
Implementation in 2022：
For supplier management, we conduct supplier surveys annually based on the risk profile (high-, mid- and low-risk), product category (raw materials, equipment) and level of business relationship (critical/major/new suppliers) of our suppliers. For the survey results, please refer to the Supply Chain Management section of our sustainability report or our official website.

Nearby Communities

Topic of Interest:
  • Environmental responsibility
  • Social welfare
Channel and Frequency of Communication：
  1. Personnel visits (ad hoc)
  2. Participation in community meetings
  3. Participation in community activities
Implementation in 2022：
1. Active participation in community activities and local visits Each plant assigned dedicated personnel to regularly pay visits to local borough chiefs (generally on a quarterly basis). We also actively participated in/assisted with community disaster prevention efforts, donated pandemic relief supplies, participated in the river adoption program, held beach cleanup days, and supported local elementary and high schools through donations. In 2022, a total of 98 community consultations were conducted. Topics of discussion included: industrial safety (fire prevention), air quality, waste management, sponsorship for community activities/school clubs, emergency response drills of mutual-aid groups, tree adoption program, etc. All units engaged in meaningful communication and have taken practical measures to address related concerns. 2. Community Satisfaction Survey In the fourth quarter of 2022, we conducted our first plant-level Local Community Satisfaction Survey, recording a satisfaction rate of 95.2% from 29 samples. All questions related to corporate image received high scores (9.7 out of 10), while questions related to waste management at related facilities received a relatively lower score (9.1 out of 10). Each plant will continue to communicate with neighboring communities the Company’s efforts in environmental protection.

Government Agencies

Topic of Interest:
  • Corporate governance
  • Environmental responsibility
  • Labor relations
Channel and Frequency of Communication：
  1. Participation in info sessions and educational activities
  2. Participation in symposiums and seminars
  3. Fulfilling filing and reporting duties and complying with on-site inspections
  4. Communication via official correspondence and phone
 

Implementation in 2022：
Everlight Chemical assigned representatives to participate in all relevant government info sessions and activities to understand actions needed on the Company’s end. Besides fulfilling legal reporting duties and allowing inspections across business divisions, we also proactively sought guidance from competent authorities through phone calls or in-person visits.

Banks

Topic of Interest:
  • Business operation and profitability
  • Corporate governance
Channel and Frequency of Communication：
  1. Personnel visits (ad hoc)
  2. Company website (ad hoc)
  3. Phone communication (ad hoc)
Implementation in 2022：
We regularly communicated with banking personnel, usually through phone calls, to ensure effective communication.

Material Topic Identification and Prioritization

Our material topic identification and survey process is outlined below:
I. Implementation Timeline
We kicked off the project to identify material topics in April 2021. Online questionnaires and implementation details were finalized in May. In June, we sent out the questionnaires through various channels based on the list of stakeholders. Completed questionnaires were collected in July, followed by an analysis and presentation of the survey results to the management team. In August, the result of our material topic identification (six material topics selected for prioritization) was presented to the board. In Everlight Chemical Group’s operational strategy meeting in November, the ESG material topics for 2022 and the corresponding management approaches, performance indicators and targets were confirmed.
II. Stakeholder Identification
We referenced the AA1000 Stakeholder Engagement Standard (AA1000SES) and identified seven key stakeholder groups.
III. Selecting Potential Material Topics
Referencing the GRI Standards, industry development and trends (based on the SASB Standards for the Chemicals industry), relevant international environmental protection issues (e.g., UN SDGs and climate change response), and through further stakeholder engagement, we selected 15 ESG issues to include in our questionnaire:
1. Business Performance, 2. Innovative Research and Development, 3. Customer Relationship and Marketing Development, 4. Organizational Resilience, 5. Regulatory Compliance, 6. Digital Transformation and Information Security, 7. Product Responsibility, 8. Supply Chain Management, 9. Labor Relations, 10. Occupational Safety and Health, 11. Equal Human Rights, 12. Community Engagement, 13. Environmental Resource Management, 14. Pollution Prevention and 15. Climate Change Response
IV. Materiality Survey with Representative Stakeholders
A total of 180 questionnaires on topics of interest were distributed across the seven groups of stakeholders. 151 questionnaires were completed and returned, representing a survey response rate of 83.8%. We also distributed 30 questionnaires to department managers to assess the significance of Everlight Chemical’s impact on the economy, environment and people under each topic.
V. I dentification & Prioritization of Material Topics
As shown below, we analyzed and mapped out the survey results in a materiality matrix. Issues that are high on both axes are prioritized as material topics.
Based on the above materiality assessment, six material topics for 2022 were determined (Regulatory Compliance, Occupational Safety and Health, Pollution Prevention, Product Responsibility, Customer Relationship and Marketing Development, and Organizational Resilience), based on which we have devised corresponding management approaches and 18 performance indicators.

Changes to the List of Material Topics: 2022 vs. 2021

Among the six material topics selected for 2022, five are the same as material topics selected for 2021, but the order of priority has been adjusted to reflect market trends and Everlight Chemical’s net-zero commitment. One new material topic, Customer Relationship and Marketing Development, has been added to our list in 2022, to take into account new market opportunities and transition opportunities in the face of climate change.

2021 Material Topics

(in the order of priority)

2022 Material Topics

(in the order of priority)

  • Business performance

  • Value Creation through R&D and Technological Innovation

  • Measures and Response to Risk Impact

  • Regulations to Comply with in Business Operations

  • Water Resource Management and Wastewater Treatment

  • Occupational Health and Industrial Safety

  • Product Quality and Services

  • Regulatory Compliance (Existing topic, moved up in ranking and includes our net-zero commitment)

  • Occupational Safety and Health (Existing topic, moved up in ranking in response to global trends to prioritize human rights issues)

  • Pollution Prevention (Consolidated from two existing topics: Measures and Response to Risk Impact, Water Resource Management and Wastewater Treatment)

  • Product Responsibility (Consolidated from two existing topics: Value Creation through R&D and Technological Innovation, Product Quality and Services)

  • Customer Relationship & Marketing Development (Newly added material topic)

  • Organizational Resilience (Consolidated from two existing topics: Business Performance, Measures and Response to Risk Impact)

Material Topic Impact Assessment and Performance Indicators (Target & Actual Performance in 2022)

Everlight Chemical’s management team evaluated the Company’s ESG measures and performance in 2022 based on performance indicators selected for managing positive and negative impacts. The results are as follows:

Assessment of Positive and Negative Impacts for Material Topics

No.

Material Topic

Positive/Negative Impact Rating (P/N, Score: 1-4)

Scope of Impact / Degree of Involvement

Key Performance Indicators (KPIs)

2020 Target

2022 Actual

Impact Level

Likelihood

Description

Shareholders

Customers

Employees

Suppliers

Communities

1

Regulatory Compliance

P: 4

N: 2

4

Positive Impact: Everlight Chemical has always prioritized compliance with laws and regulations, fostering positive corporate image and influence

Negative Impact: We have incurred fines in environmental and social aspects in 2022, but has since conducted reviews and made improvements

☐

○

●

☐

●

(1)

Fines Incurred

(NT$0,000)

0

45.5

2

Occupational Safety and Health

P: 4

N: 2

4

Positive Impact: Everlight Chemical is committed to its zero-accident mission and has taken measures to mitigate related risks

Negative Impact: A fire incident occurred due to inadequate preventive measures. Immediate corrective actions had been taken

☐

●

○

(2)

Frequency-Severity Indicator(FSI)

0

0.01

3

Pollution Prevention

P: 4

N: 1

4

Water Resource Management: We continued to reduce our water consumption and ensure regulatory compliance in terms of wastewater discharge, minimizing our environmental impacts. We outperformed our target for 2022.

●

●

☐

(3)

Water Recovery Rate (R2)(%)

≧ 83

93

P: 4

N: 2

4

Air Pollution Prevention: We aim to reduce our air pollution emissions to mitigate environmental impacts. Yet we missed our target in 2022 due to the fire incident. We have made immediate improvements accordingly

●

●

☐

(4)

Emissions Reduction Rate per Unit of Production (%)

≧ 5

-3

P: 4

N: 2

4

Waste Management: Waste recycling is an important focus of our circular economy practices and helps reduce negative impacts on the environment. We also use atom efficiency as an indicator of resource utilization efficiency. A high atom efficiency rate indicates less waste is produced. We outperformed the targets set for 2022

●

●

☐

(5)

Waste Recycling and Reuse Rate (%)

≧ 70

72

(6)

Proper Disposal Rate of Hazardous Industrial Waste (%)

100

100

(7)

Recycling Rate of Hazardous Industrial Waste (%)

≧ 3.1

4.3

(8)

Atom Efficiency (%)

≧ 66.6

70.9

4

Product Responsibility

P: 4

N: 1

4

We continued to increase the proportion of revenue generated by sustainable products and improve the use-phase efficiency/benefits of our products. We also further promoted process safety to prevent hazards and negative impacts. We have achieved our 2022 targets

●

●

☐

(9)

Percentage of Revenue from Sustainable Products (%)

≧ 56

56

(10)

Progress on Establishing Process Safety Management (PSM) Systems

完成

完成

5

Customer Relationship & Marketing Development

P: 4

N: 2

4

Relevant indicators include product quality level, share of sales revenue from new products and customer satisfaction. In 2022, our performance on these indicators all surpassed the targets set for the year.

●

●

☐

(11)

Product Quality Level (σ)

≧ 3.2

2.8

(12)

Percentage of Sales Revenue from New Products (%)

≧ 13

14

(13)

Customer Satisfaction (Score)

≧ 88

90

(14)

Employee Turnover Rate (%)

≦ 1.5

1.2

6

Organizational Resilience

P: 4

N: 1

4

Organizational resilience involves various aspects, including labor relations (employee turnover rate), information security (monthly availability rate of critical information systems and network services), supplier management (on-time delivery rate, proportion of mid/high-risk suppliers) and risk management (number of mid/high-level risks addressed). We have assigned relevant functions and departments to manage impacts in these aspects accordingly

☐

○

●

☐

☐

(15)

Monthly Availability Rate of Critical Information Systems and Network Services (%)

≧ 90.5

100

(16)

On-time Delivery Rate (%)

≧ 85

85

(17)

Share of Mid/High-Risk Suppliers (%)

≦ 3

3

(18)

Number of Mid/High-level Risks Addressed

6

7

Note 1:Impact level is rated per the following options: 1 = No impact, 2 = Low impact, 3 = Moderate impact, 4 = High impact; Likelihood is rated per the following options: 1 = Highly unlikely to occur, 2 = Occasionally occurs, 3 = Frequently occurs, 4 = Always occurs (Actual impact)
Note 2:● The organization directly causes impact; ○ The organization contributes to impact; ☐The organization is directly linked to the impact through a business relationship
In addition to assigning clear designation of responsibilities to relevant departments and units based on these performance indicators, we utilize our existing risk management system and grievance channels to strengthen related internal controls and make improvements. We have also established remediation processes to address negative impacts and effectively respond to potential and unexpected impacts. In 2022, we missed our targets on three of the 18 key performance indicators above. The reasons are as follows:

KPI

2022

Reason for Underperformance

Response and Improvement

Target

Actual

(1) Fines Incurred (NT$0,000)

0

45.5

1. Pharmaceutical Factory: Fined NT$60,000 (for the declared amount of toxic chemical substances did not match the actual stored amount onsite).

2. ECIC Plant III: A fire broke out at the plant on March 10, incurring fines of NT$180,000 in total.

3. Trend Tone Imaging: Fined NT$60,000 (Reason: failing to modify the name of statutory responsible person in the approval document for toxic chemical substances).

4. Trend Tone Imaging: Fined NT$150,0000 for requiring foreign employees to work beyond overtime limits.

5. Trend Tone Imaging: Fined NT$750 for late filing of tax returns.

6. Everlight Suzhou: Fined RMB 1000 for failing to label the source brand of raw materials per customs regulations.

          

1. Besides enhancing manager oversight, we also strengthened our control measures utilizing the government’s Toxic and Concerned Chemical Substances Registration and Declaration System.

2. Each factory conducted a comprehensive review of safety measures to prevent fire incidents from happening again.

3. A Checklist for Modification of Statutory Responsible Person was established, based on which related personnel will be reminded with email notifications going forward.

4. We have promptly added more manpower to our production lines to avoid exceeding overtime limits in the future.

(4) Emissions Reduction Rate per Unit of Production (%)

≧ 5

-3

The production volume of solvent products increased at ECIC Plant II and ECIC Plant IV (contributing to around 60% of the decrease in emissions reduction rate per unit of production), and the inspection results of equipment components at ECIC Plant III for 2022 Q3 showed a slight deviation from normal levels (contributing to around 40% of the decrease in emissions reduction rate per unit of production).

1. We have requested each plant to strengthen self-inspection and maintenance to restore the calibration of equipment components to normal levels.

2. The product coefficient is not a controllable factor and should be reported based on actual operations.

(11) Product Quality Level (σ)

≧ 3.2

2.9

Underperformance in this indicator resulted from significant changes to the production process of two products.

We have identified the causes of unstable production processes with these two products and have taken effective countermeasures.