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Compeq | 6th Corporate Social Responsibility Report
2015 COMPEQ CORPORATE SOCIAL RESPONSIBILITY REPORT
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Compeq Corporate Social Responsibility Report Profile This is the sixth sustainability report to be issued by Compeq Manufacturing Co., Ltd. (hereinafter referred to as "Compeq") In issuing this report, Compeq discloses to stakeholders the company's efforts and accomplishments in sustainability issues in order to fulfill its responsibility as a corporate citizen and realize its vision of sustainable operations. An overview of this report is provided below:
Contact Details
If you have any suggestions or questions about
this report, please do not hesitate to contact us: Compeq CSR Team
No. 91, Lane 814, Daxin Rd., Xinzhuang Vil., Luzhu
Dist., Taoyuan City
TEL: +886‐3‐323‐1111 #2250
Contact Person: Isabella Huang
E‐mail: [email protected]
Corporate Website: http://www.compeq.com.tw
The scope of this report covers the period between January and December, 2015. The organizational boundary covers the headquarters, Luzhu Plant and Dayuan Plant in Taiwan, the production sites in Mainland China including Compeq Computer (Huizhou) Co., Ltd., Compeq Precision Circuit Board (Huizhou) Co., Ltd., Compeq Manufacturing (Suzhou) Co., Ltd., and Compeq (Chongqing) Co., Ltd., excluding branch offices in various locations. All figures of financial indicator are shown in New Taiwan Dollars. Other relevant performances are displayed in internationally accepted indicators.
This report has been certified by an independent third party, TÜV Asia Pacific Ltd. Taiwan Branch. Its structure is based on the Sustainability Reporting Guidelines Version 4 (GRI 4) core indicators issued by the Global Reporting Initiative (GRI) in 2013 and AA1000AS: 2008.
All of the 2015 data used in this report were verified by an independent third party and presented using internationally accepted indicators. Any estimations were duly noted in the corresponding sections. The financial data was audited and verified by the accounting firm Baker Tilly Clock, & Co. with all units in NTD. The greenhouse gas emissions were verified by TÜV Asia Pacific Ltd. Taiwan Branch.
This is the 5th CSR report to be issued by Compeq. We will continue to publish this report on an annual basis and make the report available on the Compeq website. Current release: June, 2016 Next publication: June, 2017
Scope Reporting Guidelines and Verification
Basis of Report Calculations Date of Publication
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1. Strategy and Vision 4 3‐2‐3. Issue Survey and Response 305‐2‐3. Graph of Hazardous Substance Usage and Content 47
7‐1‐3. In‐Service Training on Safety and Health 65
2. Corporate Overview 6 3‐2‐4. Result of Materiality Analysis 31 6. Green Commitment 48 7‐1‐4. Fire Drills 65 2‐1. About Compeq 7 3‐2‐5. Boundaries for Material Issues of Concern 32 6‐1. 2015 Green Commitment Targets 49
7‐1‐5. 2015 Occupational Disaster Statistics at Each Plant 66
2‐1‐1. Company Background 7 3‐2‐6. 2015 Social Responsibility Progress 34 6‐2. Greenhouse Gas Management 507‐1‐6. 2015 Health Related Activities at Each Plant 67
2‐1‐2. Global Footprint 8 3‐2‐7. Review of 2015 Targets Not Met and Response Strategies 37 6.2.1 Greenhouse Gas Inventory 50 7‐1‐7. Enhancing Employee Wellbeing 68
2‐1‐3. Industry Overview 9 4. Supply Chain Management 38 6.2.2 Carbon Communications 52 7‐2. Compeq and Employees 69 2‐1‐4. Market Analysis 9
4‐1. Supply Chain Social Responsibility Management 39 6‐2.3. Energy Saving and Carbon Reduction 53 7‐2‐1. 2015 Employee Relations Targets 69
2‐1‐5. Short and Long‐term Business Development Plans 11 4‐1‐1. Supply Chain Type 39 6.3. Air Pollution Prevention 54 7‐2‐2. 2015 Work Force Overview 69 2‐1‐6. Organizational Membership 12
4‐1‐2. Supply Chain Social Responsibility Priorities 40
6‐4. Energy and Power Consumption Management 54
7‐2‐3. Diversity and Equal Opportunity Employment 70
2‐2. Corporate Governance 13 4‐1‐3. Supplier Social Responsibility Audit Results 406‐4.1. 2015 Energy Saving Initiatives and Results 55 7‐2‐4. Employee Composition 70
2‐2‐1. 2015 Financial Performance 13 4‐1‐4. Waste Contractor Environmental Audit Results 40 6.5. Water Resource Management 56 7‐2‐5. Employee Engagement 73
2‐2‐2. Compeq Organization Chart 14 4‐1‐5. HSF Requirements and Procurement Management 40 6‐5‐1. Wastewater Treatment 57
7‐2‐6. Building a Friendly and Harmonious Workplace 73
2‐2‐3. Board of Directors 15 4‐1‐6. Types of Material Procurement 406‐5‐2. Discharge Water Recycling Targets and Results 57 7‐2‐7. Compensation 74
2‐2‐4. Corporate Governance and Risk Assessment Operations 17
4‐1‐7. Supplier Production and Quality Evaluation 41 6.6. Waste Management 58 7‐2‐8. Basic Benefits 74
2‐2‐5. Ethical Management and Risk Assessment Operations 20 4‐1‐8. Supplier Management Philosophy 41 6‐6‐1. Recovery and Reuse at Taiwan Plants 58
7‐2‐9. 2015 Applications and Employees Returning from Unpaid Parental Leave 75
2‐2‐6. Financial Risk Assessment and Future Responses 22 5. Customer Relations 42 6.7. Environmental Performance Indicators 59
7‐2‐10. Working Time Control Mechanism 75
3. Corporate Social Responsibility at Compeq 23 5‐1. Customer CSR Management Targets 43 6‐7‐1. 2015 Environmental Expenditures 60 7‐2‐11. Multiple Grievance Channels 76 3‐1. Corporate Social Responsibility 24 5‐1‐1. Regulatory Compliance 43 6‐7‐2. 2015 Environmental Compliance 60 7‐2‐12. Preventing Sexual Harassment 76 3‐1‐1. CSR Organization 24 5‐1‐2. Confidentiality of Customer Information 44
6.8. Future Direction in Pollution Prevention 61
7‐3. Employee Development and Training 77
3‐1‐2. Social Responsibility Policy 25 5‐1‐3. Customer Satisfaction 44 7. Employee Relations 62 7‐3‐1. Diversified Training Courses 77 3‐2. Stakeholder and Material Aspect Identification 26 5‐2. Green Product 45 7‐1. Occupational Health and Safety 63 8. Community Relations 79 3‐2‐1. Stakeholder Communications 26 5‐2‐1. HSF Management 45
7‐1‐1. 2015 Occupational Health and Safety Targets 63 8‐1. Local Environmental Protection 80
3‐2‐2. Stakeholder Communication Channel 27 5‐2‐2. REACH/SVHC Management 457‐1‐2. Occupational Safety and Health Management System 63 8‐2. Local Efforts and Feedback 80
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1. Strategy and Vision
From the Chairman and CEO "Compeq performance in 2015 as well as the vision and targets for 2016"
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To all friends of Compeq:
The world went into an economic recession in 2015 and the overall PCB industry shrunk slightly (‐3.7%) compared to 2014. Compeq's continued efforts in infrastructure development and building of a competitive management model proved its worth in 2015. A total operating revenue of 44.38 billion NTD in 2015 was a 31.1% increase over 2014. The 2015 net income of 2.87 billion NTD was also 880 million NTD (44.3%) higher than the 1.99 billion NTD over the same period in 2014.
The PCB industry is expected to remain steady in 2016. Compeq will continue to focus on the development of high‐end flexible and rigid board technologies. We will strengthen our core operations at the same time. The steady performance in our PCB and assembly business groups should see Compeq's deliver solid results for 2016. During 2016 we will continue to fulfill our CSR, respect labor rights, conserve energy, and reduce carbon emissions to protect the environment in order to satisfy the expectations of the government and customers. Our goal is to become a sustainable enterprise. Business Plan 2016 Business direction: Build an even more competitive business system through continued improvements in management and organization. Compeq will continue to promote a manufacturing‐oriented business model. For selected product markets, we will start by setting up the necessary plant and infrastructure to provide competitive manufacturing services (quality, delivery time, cost). Sales will then take orders for PCB and SMT plants based on their individual capabilities to try and keep plant utilization as high and steady as possible. We will maintain our commitment to quality in process setup, factory management, improving process stability and product management. We want to ship products that satisfy our customers' quality requirements while also achieving competitive yields. We will strive to fulfill our CSR, conform to the expectations of the government, our customers and society, continue to promote energy‐saving and carbon reduction, protect human rights, improve employees' lifestyles and become a sustainable green enterprise. Sales forecast: Our company's main product is PCB. Existing production sites including Luzhu and Dayuan in Taoyuan as well as the Huizhou and Fuling factories in China are expected to achieve total sales of 29.9 million sq. ft. The SMT division's factories in Suzhou and Huizhou are expected to process 200 million units during the year. Key production and sales policy: Maintaining full plant utilization with adjustments made based on order longevity and profitability will continue to be our strategy in the future. We will look for orders that match our plant capabilities in order to keep plant utilization as high and stable as possible. SMT will concentrate on steady growth of customer products in selected markets in order to keep plant utilization as high as possible.
Chairman Wu JianPresident Chiang Pei‐kun
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2. Corporate Overview 2.1 About Compeq
2‐2. Corporate Governance 【Introduction to the Background, Business Philosophy and Governance of Compeq】
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2‐1. About Compeq
Company Name Compeq Manufacturing Co., Ltd.
No. of Employees
Approximately 18,000 worldwide (Increase of around 3,000 compared to
2014)
Capital 11.9 billion NTD
Established August 30, 1973
Main product Printed circuit board (PCB)
Chairman Wu Jian
CEO Chiang Pei‐kun
Taiwan Headquarters
No. 91, Lane 814, Daxin Rd., Xinzhuang Vil. Luzhu Dist., Taoyuan City
Operating Regions
Dayuan (Taiwan) / Huizhou (China)/ Suzhou (China) / Chongqing (China)
2.1.1 Company Profile Compeq Manufacturing Co., Ltd. was established in Luzhu Dist., Taoyuan City, in August, 1973.
Compeq was the first PCB manufacturing company set up in response to the government's call to develop the high‐tech strategic industry. In the beginning, Compeq specialized in the production of single and double‐sided PCBs. It later spearheaded the Taiwanese PCB industry's development on multi‐layer PCBs.
Compeq Global Sites
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2‐1‐2. Global Footprint Compeq has concentrated on our core business of PCBs since establishment. To reduce manufacturing costs, meet customer requirements and develop potential
markets, Compeq Manufacturing Co., Ltd. was established at the Luzhu site in 1973. Another plant was later built in Taiwan at the Dayuan Industrial Park in Taoyuan County in 1998.
Globalization and the rising economic clout of China led to Compeq setting up a production site in Huizhou, China, in 1996, as part of our global strategy. Compeq Precision Circuit Board (Huizhou) Co., Ltd. and Compeq Manufacturing (Suzhou) Co., Ltd. were set up in 2004 to provide customers with flexible PCB (FPC) and low volume assembly services in response to expanding customer requirements. Compeq Manufacturing (Chongqing) Co., Ltd. was established in Chongqing, China, in 2013 to supply high‐end PCBs. The table below lists the purpose of each plant and their main products:
Item Taiwan Plants China Plants
Luzhu Plant Dayuan Plant Huizhou Plant Huizhou SMT Plant FPC Plant Suzhou Plant Chongqing Plant
Plant purpose
Technical R&D center, highly flexible manufacturing plant, manufacturing plant for high‐volume, short‐lead time products
High‐end PCBs, rigid‐flex PCBs
Mass production plant, service local customers in China
SMD prototyping and assembly service
FPC production. Slated for chip‐on‐film manufacturing in the future
SMD prototyping and assembly service High‐end PCBs
Key product
Mobile phones, telecommunications equipment, work stations, networking equipment, storage equipment, servers, vehicle electronics and other multi‐layer PCBs
PCBs for telecommunications equipment, wireless communications equipment and consumer electronics products
PCBs for mobile phones, telecommunications equipment, notebooks, servers, LCDs and consumer electronics products
Module assembly service
PCBs for telecommunications equipment, consumer electronics and LCD modules
Module assembly service
Smart phones, tablet PCs
Address
No. 91, Lane 814, Daxin Rd., Xinzhuang Vil., Luzhu Dist., Taoyuan City
No. 275 Zhongshan N. Rd., Dayuan Industrial Park, Dayuan Township, Taoyuan County
No. 168 Huguang Rd., Huzhen Town, Boluo County, Huizhou, Guangdong Province, China
Block 20, Suchun Industrial Square, Xinglong Industrial Park, Suzhou, China
No. 21 Julong Blvd. Lidu New District, Fuling District, Chongqing City
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2‐1‐3. Industry Overview The global economy remained weak in 2015. While emerging markets and developed economies still accounted for over 70% of global growth, this has been in
decline for five straight years. Key economies such as Japan and the Euro‐Zone are still going through structural adjustments with moderate recovery. Oil prices have plummeted since September 2015 due to global oil production continuing to surpass oil consumption. The market expects OPEC members to continue increasing their output. The persistently low international oil prices means global agricultural and industrial raw material prices were lower than the previous year. The drop in global raw material prices means vendors are reducing their inventories as well. The decrease in both price and volume impacted on global economic performance in 2015. Brent Oil averaged 52 USD per barrel in 2014, a decrease of 47% compared to the 2014 average of 99 USD per barrel. The flow‐on effects from low oil prices will continue to be felt in 2016.
In 2015, global economic growth was 3.1%. The global PCB industry is expected to be worth 41.809 billion USD in 2015 for a growth rate of 1.79%. The global economy is expected to stay in a state of "New Mediocre" for 2016. As worldwide economic growth is expected to remain flat, the low raw material prices as well as imbalance in trading energy will become important global issues. There is a chance for growth in key national economies. The US unemployment rate is now at 5% down from the 10% in 2009. The US Federal Reserve's announcement of rate increase should bring about a steady recovery in key national economies. Thanks to low oil prices and a loose monetary policy, Europe and Japan will see a gradual thaw in their economic growth. The labor pains associated with transformation and economic reforms means emerging markets and developing nations will be faced with serious challenges that create more uncertainty on their economic and financial stability. The global economy has been affected by OPEC nations' release of their oil reserves and international crude prices will drop to around 42 USD per barrel. Global economic growth in 2016 is therefore expected to be 3.6%, just 0.5% higher than the 3.1% in 2015. The economic growth of developed nations will be 2.2%, up 0.2% on 2015. Emerging markets and developing nations will see an economic growth of 4.5%, up 0.5% on 2015. At the same time, for the global electronics industry the demand from 4G LTE consumer mobile communications devices and infrastructure roll‐out is expected to slow. Growth in the global PCB market should therefore grow by 1.07% to reach 42.519 billion USD.
2‐1‐4. Market Analysis Consumer products such as smart phones and tablets along with network communications products such as 4G LTE base stations, cloud servers, and networking equipment will support the steady growth of the PCB industry in 2016. An analysis of the above products is provided below: Mobile phones
In 2015, global smart phone shipments began to level out. Total global smart phone shipments were 1.432 billion units, or 79% of all global mobile phone shipments. Annual growth was 10% and the global consumer market for mobile phones is now entering the post‐smart phone era. The smart phone market in 2015 was dominated by Android smart phones that offer high specifications at affordable prices. Leading brands all rushed to release large‐display models that spurred a wave of consumer upgrades. In 2016, the smart phone market will become increasingly split between high‐end/high‐prices and mid/low‐end, low‐priced products. Emerging markets and consumer buying trends will boost demand for mid/high‐end smart phones with low prices. Global demand for smart phones will see a
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slowdown in sales as growth plateaus to around 6%. Around 1.532 billion units will be shipped and account for 85% of all mobile phone shipments worldwide. Tablets and notebooks
In 2015, tablet PC shipments totaled 206 million units, down 10% on the 230 million units in 2014. Demand for standard tablets have shrunk due to large‐display (5.5") smart phones. Demand for 2‐in‐1 tablets however grew significantly last year. In 2015, the global notebook market was eroded by large tablet PCs (10" and above). Apart from the business and education market, there was no significant increase in demand from the consumer market. Global sales totaled just 164 million units, a decline of 6.3% from the 175 million units shipped in 2014. For 2016 , growth for tablets will hopefully come from demand for 2‐in‐1 tablets. Leading brands are hoping that an adjustment to the direction of product application will enable tablets to better meet the needs of more applications. Tablet shipments in 2016 are expected to lower than 2015 and drop to 185 million units, a decline of 10%. Notebook computers are seeing their market shared by 10" and large tablets. The anticipated wave of upgrades from the Windows 10 operating system failed to materialize as well. Overall shipments are therefore expected to drop to 155 million units for a decline of 5.8% per annum.
Base stations In 2015, global consumer demand and business demand for mobile Internet access saw steady growth as telecoms eased off on their 4G LTE infrastructure and Wi‐Fi base station roll‐outs. Research suggests that global spending on Internet equipment amounted to 698.6 billion USD in 2015. For 2016, the completion of 4G infrastructure roll‐outs around the world means that global Internet access demand will be supported by hardware infrastructure growing at a steady pace. Global spending on Internet equipment this year is expected to reach 723 billion USD for an annual growth rate of 3.5%.
Servers Global IT expenditure in 2015 was generally flat like the economy. The only significant growth was reported in data centers at 1.8%. Global IT spending is therefore estimated to be 3.51 trillion USD in 2015, a decline of 5.8% compared to 2014. In 2016, shipments of mobile hardware devices will plateau while the demand from data centers will continue to grow slightly. Global IT expenditure should therefore reach 3.53 trillion USD, about the same as the 3.51 trillion USD from 2015. Server systems and equipment will continue to be driven by demand from cloud computing and big data so the annual growth rate should reach 3%.
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2‐1‐5. Short and Long‐term Business Development Plans In terms of short‐term business development, Compeq will follow the strategy of total product service. Particular emphasis will be given to High Density Interconnect
(HDI), High Layer Count (HLC) , Flexible Printed Circuit (FPC), Rigid‐Flex PCB, and SMT services. We will also continue to invest in the development of these technologies. In terms of long‐term business development, as future growth in the market will come mainly from consumer electronics (smart phones, wearable devices, tablets
and other handheld devices) and network communications products (e.g. base station, servers, network communications products), Compeq will continue to invest in production, manufacturing and customer service as well. We will provide customers with the best quality in PCB‐related products and services. Resources will also be invested when appropriate to develop ad provide customers with related products and services.
Total Product Service
Continuous R&D and quality delivery
Invest resources into meeting customer requirements
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2‐1‐6. Organizational Membership Name of
Association/Organization Function of Organization
Taiwan Printed Circuit Association (TPCA)
1. Strengthen member service, promote group benefit
2. Train professional expertise, cultivate human resources
3. Track market information, reinforce competitiveness
4. Increase industry interaction, upgrade industry economy
5. Participate in international business, upgrade international vision
6. Promote government cooperation and hold public interest events
China Printed Circuit Association (CPCA)
Promote revolution and development of printed circuit industry. Accelerate modernization of printed circuit industry.
Institute of Internal Auditors of the Republic of China
1. Promote academic research in internal audit and reinforce contact with international internal audit organizations
2. Broadcast internal audit theories and practice
3. Promote sound development of domestic internal audit system
4. Assist enterprises and institutional organizations to improve the operational management system
Police Association of Taoyuan City
Improve relationship between the police and the public, assist with the maintenance of social order, tranquility and enjoy a happy life together
Chinese Human Resource Management Association
The objectives are to study human resource management and development knowledge, reinforce training development, upgrade manpower quality, reinforce exchange and event with domestic and overseas human resource management professionals and improve international competitiveness
Name of Association/Organization Function of Organization
Taoyuan City Civil Business Relationship Promotion Association
Promote consolidation of resources between government institutions and civil organizations and provide assistance to the police authority
Industry greenhouse gas voluntary reduction promotion plan
To promote industry energy saving and carbon reduction, the Taiwan Plant implements the objective of annual continuous reduction of energy density and encourages companies to participate in industry department greenhouse gas voluntary reduction work
Boluo County Charitable Fund Association
Promote humanitarian spirit and the traditional virtue of the Chinese to help the poor and those in difficulty, assist groups in difficulty and develop various kinds of social assistance work.
Member of Guangdong Province Labors Association, Guangdong Province Human Resource Management Association and Guangdong Province Modern Service Industry Association
Lead and promote Guangdong Province hiring industries to establish an orderly, fair, reasonable, mutually beneficial, harmonious and stable labor relationship, increase the awareness of labor legislations of hiring industries and build a good‐faith, proper hiring environment
EICC‐ON Platform
Conduct EICC self‐inspection (SAQ) through the EICC platform and share the company's audit information with key customers such as other EICC members
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2‐2. Corporate Governance 2‐2‐1. 2015 Financial Performance
Apart from monthly sales reports, Compeq also hosts institutional investor conferences each quarter and the annual general shareholders’ meeting each year. All of the related information can be found on the Compeq website under the Investor Services section.
Website: http://www.compeq.com.tw/accomplishments02_1.php Shown on the right is Compeq's overall financial performance over the past
three years. Net profit in 2015 was 2.87 billion NTD, an increase of 44.3% on the 1.99 billion NTD in 2014. In 2015 EPS was 2.41 NTD, an increase of 0.74 NTD on the 1.67 NTD in 2014. Turnover also surpassed 5 billion NTD in November 2015, a new record.
Financial performance of Compeq over the last 3 years
Item (1000 NTD) 2013 2014 2015
Operating Income 30,897,875 33,849,513 44,382,978
Operating Cost (26,331,041) (29,029,879) (37,742,791)
Operating Gross Profit 4,566,834 4,819,634 6,640,187
Operating Net Profit (Loss)
2,767,139 2,850,705 4,473,457
Non‐operating Income 207,410 217,067 262,745
Non‐operating Profit and Loss
(89,626) (131,599) (559,307)
Non‐Operating Financial Expenses
(251,634) (252,317) (301,473)
Consolidated Net Profit Before Tax
2,633,289 2,683,856 3,875,422
Consolidated Net Profit After Tax
1,854,169 1,986,648 2,867,168
Government Assistance(Training and Education)
298.6 310 276
Community Investment N/A N/A N/A
Earnings Per Share excluding proceeds from sale of subsidiaries (NTD)
1.56 1.67 2.41
Income Tax Expenses 800 Million 700 Million 1,000 Million
Cash Dividend 0.5 0.6 1
Compeq EPS Performance over the last 3 years
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2‐2‐2. Compeq Organization Chart
Chairman
CEO
Executive Vice President
Executive Vice President
Executive Vice President
Huizhou Plant (China)
Suzhou Plant (China)
FPC Plant (China)
Chongqing Plant (China)
Luzhu Plant (Taiwan)
Dayuan Plant (Taiw
an)
Quality M
anagement
Division
Finance Division
Administration D
ivision
MIS Integration and
management of all company products and materials.
Integration and management of all company technologies, equipment, engineering and products.
Formulation and promotion of sales and production strategy. Coordination and integration of product marketing and production plants. Development of FPC and RFPC customers in Northeast Asia and China as well as the provision of after‐sales service.
No. 1 Sales D
ivision
No. 3 Sales D
ivision
R&D Division
Equipment D
evelopment
Division
Product Developm
ent Division
Product Strategy Developm
ent Division
Materials D
ivision
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2‐2‐3. Board of Directors
As the above organization chart shows, the highest organ of management in Compeq is the Board of Directors. There are no special‐purpose committees under the Board. The chairman of the Board of Directors is the Chairman of the company. There are four directors, two independent directors, and two supervisors. All eight Board members are talented executives with extensive management knowledge and professional backgrounds. The members of the Board are detailed below:
Board Members and Roles
Title Name Experience Current positions in Compeq and other companies
Chairman and CEO Wu Jian Chairman of Tai Yeh Company, Director of Robina Finance & Leasing Corp. CEO of Compeq Manufacturing Co., Ltd., Director of Chang Chi Investment Co., Ltd.
Director Peng Kai‐sien Director of Ming Yu Enterprise Co., Ltd. None
Director and President Chiang Pei‐kun Vice President of Compeq Manufacturing
Co., Ltd.
President of Compeq Manufacturing Co., Ltd., Chairman of Huaton Holdings Ltd., Chairman of Compeq Manufacturing (Huizhou) Co., Ltd., Chairman of Compeq Manufacturing (Chongqing) Co., Ltd., Chairman of Compeq Ethnology (Huizhou) Co., Ltd.
Executive Vice President Wu Bao‐yi General Manager of Compeq
Manufacturing Co., Ltd.
Vice President of Compeq Manufacturing Co., Ltd., Director of Compeq Computer (Huizhou) Co., Ltd., Chairman of Compeq Precision Circuit Board (Huizhou) Co., Ltd., Chairman of Compeq Manufacturing (Suzhou) Co., Ltd., Director of Chang Chi Investment Co., Ltd., Chairman of Positive‐Bo Investment Co., Ltd.
Executive Vice President Chen Chia‐ching Manager of DuPont (US)
Vice President of Compeq Manufacturing Co., Ltd., Director of Compeq Computer (Huizhou) Co., Ltd., Chairman of Compeq Manufacturing (Suzhou) Co., Ltd., Director of Compeq Manufacturing(Chongqing) Co., Ltd.
Independent Director Huang Tung‐chou
Professor, Graduate Institute of Human Resource Management, National Central University Professor, Ching Yun University
Professor and Dean of College Management at Chien Hsin University (formerly Chin Yun University); member of Compensation Committee at Compeq Manufacturing Co., Ltd.
Independent Director Ko Ming‐chuan Vice President of First Bank Member of Compensation Committee, Compeq Manufacturing Co., Ltd.
Supervisor Hong Siou‐da Chairman of Hua Hou Co., Ltd. Chairman of Hua Hou Co., Ltd.
Supervisor
Yang Shi‐ming (Representative of
Chang Chi Investment Co.,
Ltd.)
Senior Deputy General Manager of Finance, Compeq Manufacturing Co., Ltd. Supervisor of Abnova (Taiwan) Corporation
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Board Attendance
The Compeq Board of Directors regularly provides management reports that describe the operating results for each period. Relevant information such as the activities of the Board and the remuneration for directors and supervisors are disclosed in the annual report (the annual report is available on Compeq’s website www.compeq.com.tw). Board meetings are also regularly convened when necessary. A total of eight meetings were convened last year with the attendance of directors and supervisors listed below:
Title Name Actual
Attendance (frequency)
Attendance by proxy
Actual Attendance
(%)
Chairman Wu Jian 8 0 100%
Director Peng Kai‐sien 8 0 100%
Director Chiang Pei‐kun 8 0 100%
Director Chen Chia‐ching 7 1 88%
Director Wu Bao‐yi 8 0 100%
Independent Director
Huang Tung‐chou 7 1 88%
Independent Director
Ko Ming‐chuan 8 0 100%
Supervisor Hong Siou‐da 6 0 100%
Supervisor
Yang Shi‐ming (Representative of
Chang Chi Investment Co., Ltd.)
8 0 100%
Mechanism for avoiding conflicts of interest
When directors recuse themselves to avoid a conflict of interest, the director's name, content of motion, reason for recusal, as well as voting participation and results should be recorded. During the 1st, 2nd, 4th, and 5th meetings of the 14th Compeq Board of Directors (2015) and the 2nd Board meeting of 2016 held on March 13 2015, May 8 2015, August 7 2015, November 5 2015 and February 25 2016, the Compensation Committee's recommendations regarding the remuneration of the directors, supervisors and executives were tabled for discussion. Chairman Wu Jian, Director, Director Chiang Pei‐kun, Director Chen Chia‐ching and Director Wu Bao‐yi each recused themselves from the discussion and abstained from voting on their own individual compensation. The respective motions were passed by the directors present.
Operation and Membership of the Compensation Committee
The Compeq Compensation Committee has three members. The term of the current committee runs from June 12, 2014, through to June 11, 2017. The Compensation Committee met four times in the most recent year with an attendance rate of 100%. The members of the Compensation Committee are as follow:
Role Name
Have at least 5 years of experience and the following professional qualifications
Lecturer or higher at a public/private
university in business, law, finance,
accounting or other disciplines needed by company operations
Passed national examination for judges, prosecutors, lawyers, accountants or other areas, or possesses
certification for occupations by skills needed in company
operations
Has relevant background in business, law,
finance, accounting or other areas
needed by company operations
Independent Director
Huang Tung‐chou
◎
◎
Independent Director
Ko Ming‐chuan
◎
Other Chiu Tzu‐kuan
◎
◎
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2‐2‐4. Corporate Governance and Risk Assessment Operations
Compeq is a public company and we conduct risk assessments on governance and business issues each year. Compeq's systems, measures and execution in environmental protection, community engagement, social contribution, social service, social welfare, consumer rights, human rights, safety & health and other CSR activities were assessed with the following results:
Project Practice Difference
1. Implement and promote corporate governance
(1) Corporate social responsibility policy or system defined by the company as well a review of the results.
Compeq has a defined social responsibility policy and relevant mechanism in place. We also passed SA 8000 Social Responsibility International Standard System certification and use it regularly to review the results of implementation.
No Difference
(2) Does the company organize regular training and education on social responsibility?
Compeq organizes CSR‐related training on a regular basis. Employees are also required to undertake refresher training every year.
No Difference
(3) Has the Company established a dedicated (acting) unit for promoting CSR that the Board has delegated senior executives to manage and reports progress to the Board?
The company has assigned dedicated personnel to promote the establishment and execution of the CSR management system.
No Difference
(4) Has the company defined a reasonable compensation policy that links employee performance with the CSR policy and has defined reward and punishment that is clear and effective.
The actual execution of CSR policy at Compeq is broken down into different tasks and goals based on each unit's area of responsibility. Compeq's compensation policy evaluates employees on their performance of assigned tasks before the appropriate reward/punishment is meted out.
No Difference
2. Developing a sustainable environment
(1) Efforts made by the company to improve resource utilization and reduce environmental impact through recycling?
Compeq strives to improve the recycling and reuse of different resources (e.g. recovery of water, copper, gold and silver metals) as well as the reuse of pallet materials to reduce waste production.
No Difference
(2) Establishment of an appropriate environmental management system by the company based on the nature of its industry.
Compeq has set up an ISO 14001 environmental management system with complete documentation and regular external audits.
No Difference
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Project Practice Difference
(3) How the company pays attention to the impact of climate change on operational activities and establishes the company’s energy saving, carbon reduction and greenhouse gas reduction strategies.
Compeq has carried out greenhouse gas inventory and reduction plans. It also voluntarily publishes the results of corporate action. The disclosure channels include customer surveys, participation in the Carbon Disclosure Project (CDP), etc.
No Difference
3. Protection of public interest
(1) Has the company defined management policies and procedures in accordance with the relevant in laws and international conventions on human rights?
The Company follows international guidelines defined in SA8000 and EICC to protect our employees. If there are any conflicting provisions then the more rigorous provision is adopted.
No Difference
(2) Does the company have mechanisms and channels in place to report and properly address employee grievances?
Compeq has comprehensive grievance and communication channels in place including e‐mail, physical letter box, telephone number and labor union. Employee feedback are addressed in accordance with the relevant regulations.
No Difference
(3) How the company provides employees with safe and healthy work environment and performs regular safety and health education to the employees.
Compeq is currently certified to the OHSAS 18001 international standard and the Council of Labor Affairs' TOSHMS Occupational Safety and Health Management System standards. We provide a safe and healthy work environment as well as regular safety and health education & training that meet the required standards. Regular audits are also undertaken.
No Difference
(4) Has the company established a mechanism for regular communication with employees and for notifying employees of major operational changes?
Compeq executives communicate directly with employee representatives on a regular basis through employer/employee meetings, employee welfare meetings and operating reports.
No Difference
(5) Has the company established an effective career development program for employees?
Compeq provides a range of comprehensive training programs based on our organization and roles. The head of each functional unit is responsible for defining the skills and knowledge required for personnel of all levels in their particular field. With the assistance of the training unit, these are converted into suitable training courses that give employees the professional skills and knowledge required to carry out their work. All employees are encouraged to actively share their knowledge and combine the results with the performance evaluation system in order to realize the goal of employee learning and the passing down of experience.
No Difference
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Project Practice Difference
(6) Does the company have defined consumer protection policies and grievance mechanisms in its R&D, procurement, production, operating, and service processes?
Compeq's business model is not aimed at the end consumer so we only provide assurance on products and services for customers and suppliers as well as collections, acceptance and payment. These are in accordance with bilateral agreements and legal regulations. 1. Ensure that the product or service provided is consistent with the agreement between the parties and legal provisions. 2. Provide correct and clear information related to the content, maintenance, storage and disposal of the product or service if possible so that customers make fully‐informed decisions. 3. Provide a transparent and effective customer complaint procedure and solve customer complaints fairly and timely without incurring improper cost or burden. 4. Not to engage in any deception, misdirection, fraud or unfair statement or omission, or any other improper acts.
No Difference
(7) Does the company adhere to the relevant laws and international principles on the marketing and labeling of products and services?
Compeq adheres to the relevant regulations, international principles and customer requirements on the marketing and labeling of products and services.
No significant difference
(8) Does the company evaluate the past environmental impact and social records of suppliers it deals with?
Supplier CSR performance must be taken into consideration when choosing suppliers. Compeq currently requires all suppliers to sign a "Compeq Supplier CSR and Code of Ethics Declaration." Assessments are also conducted using the "Supplier Social Responsibility Self‐Assessment Form" or "Supplier Social Responsibility Audit" based on supplier importance.
No significant difference
(9) Do contracts between the company and its main suppliers contain termination clauses in the event that the supplier is involved in or is in violation of its CSR policy in a manner that significantly impacts on the environment and society?
The "Supplier CSR and Code of Ethics Declaration" designed by Compeq's ethical management unit includes a ethical behavior clause so that the company's business activities adhere to ethical and CSR standards in accordance with company policy. The Declaration also explicitly states that in the event of any violations that cause irreparable loss to Compeq and its customers then Compeq has the right to terminate or reject the contract.
No significant difference
4. Improved disclosure
(1) Does the company disclose relevant and reliable CSR‐related information on its website or market observation websites?
The official Compeq website already discloses the latest corporate social responsibility related information on a regular basis.
No Difference
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2‐2‐5. Ethical Management and Risk Assessment Operations
Project Practice Difference
1. Definition of Ethical Management Policy and Plans
(1) Are the company's ethical management policy and practices explicitly stated in the charter and public documents, and are the Board of Directors and the senior executives actively engaged in fulfilling their commitment on business policy?
An "Ethics Policy" has been defined by Compeq's ethical management unit (the management) and published on the external website. The "Code of Ethics Management Rules" and "CSR Handbook" has also been formulated. The "Supplier CSR and Code of Ethics Declaration" include an ethics clause to ensure that Compeq's business activities conform to the relevant ethical standards and regulations. The associated accounting and internal controls must be complete, appropriate, accurate, timely and provide disclosure in a coherent manner. The Code of Ethics is also published to prevent corruption and provide protection for whistle blowers through the use of appropriate complaint channels.
No Difference
(2) Does the company have plans for of preventing unethical behavior? Does the plan include operating procedures, guides to behavior, punishments for violations and a grievance mechanism? Are these properly enforced?
A "Code of Ethics Management Rules" has been defined by Compeq's ethical management unit. It includes operating procedures, guides to behavior, punishments for violations of rules on improper gain. The code of ethics and anti‐corruption measures have been implemented along with protection for whistle blowers through proper complaint channels.
No Difference
(3) Has the company taken preventive measures regarding Article 7, Paragraph 2 of the "Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies" or other business activities that have a higher risk of unethical behavior?
Compeq has defined the "Guidelines on Labor and Ethical Risk Management" based on the articles governing unethical behavior from the "Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies". The "Code of Ethics Management Rules" also identifies and provides preventive measures for business activities at higher risk.
No Difference
2. Enforcing Ethical Management
(1) Has the company evaluated the vendor's record on ethics and included an ethics clause in the contract with this vendor?
The "Supplier CSR and Code of Ethics Declaration" designed by Compeq's ethical management unit includes a ethical behavior clause so that the Company's business activities adhere to ethical and CSR standards in accordance with company policy. The Declaration also explicitly states that in the event of any violations that cause irreparable loss to Compeq and its customers then Compeq has the right to terminate or reject the contract.
No Difference
(2) Has the company established a dedicated (acting) unit for promoting ethical management under the Board of Directors that reports its progress to the Board?
Compeq has set up a CSR organization headed by the Chairman with senior executives designated as the CSR management representative. Disclosure is carried out through the annual CSR report published by the end of June each year with progress reported to the Board.
No Difference
(3) Does the company have a conflict of interest policy with appropriate complaint channels that are enforced?
Compeq has defined the "Code of Ethics Management Rules" that states the conflicts of interest policy and initiatives. The code of ethics and anti‐corruption measures has been implemented along with protection for whistle blowers through proper complaint channels.
No Difference
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Project Practice Difference
(4) Has the company established an effective accounting system and internal control system for realizing ethical management that are regularly audited by internal auditors or by independent accountants?
Compeq has established an accounting system, internal control system and various management regulations in accordance with the Compact Act, Business Accounting Act, and Securities and Exchange Act. An annual audit plan is drawn up by the internal audit unit based on risk assessments to verify the execution of internal controls.
No Difference
(5) Does the company regularly organize internal and external training on ethical management?
Compeq organizes annual CSR and ethical management training for all employees. Employees are all also required to undergo refresher training every year.
No Difference
3. Operation of the Corporate Whistleblower System
(1) Does the Company have a concrete whistleblower and incentive scheme in place? Have convenient complaint channels been set up and are dedicated personnel assigned investigating the target of whistleblower complaints?
Compeq has set up complaint channels that employees can use if they discover or have any doubts about activities that violate government laws, Compeq's code of ethics or involve corruption (e.g. faking of financial data, theft of company property, acquisition of company property under false pretenses, improper gain, abuse of authority, leaking of trade secrets). Disciplinary action is then carried out in accordance with the employee code of conduct and related rules based on the severity of the offense.
No Difference
(2) Has the company defined a standard operating procedure for investigating complaints along with the associated confidentiality mechanisms?
Compeq has defined the "Management Rules for Whistleblower Protection" containing the standard operating procedures for investigating complaints. The identity of the whistle blower is also protected.
No Difference
(3) Does the company have measures in place to protect whistleblowers against retaliation?
Compeq has defined the "Management Rules for Whistleblower Protection" containing the standard operating procedures for investigations. A "Whistleblower Protection Policy" has also been defined to protect whistleblower against retaliation.
No Difference
4. Improved disclosure
(1) Does the company disclose its ethical management principles and progress on its website or market observation websites?
Compeq's external website includes a CSR section. The annual CSR report published by the end of June each year also provides information on ethical management and other policies. Company information is also kept up to date.
No Difference
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2‐2‐6. Financial Risk Assessment and Future Responses
The impact of changes in interest rate, foreign exchange rate and inflation on the company's bottom line as well as future initiatives: 1. Interest rate changes: History shows that interest rate trends can be unpredictable. Compeq will therefore regularly evaluate future trends in market interest
rates to determine their impact on our borrowing costs and adjust our financing policy as necessary. 2. Exchange rate changes: Most Compeq products are produced for export. Accounts receivable are mostly in USD while payments are mainly in NTD or RMB. So
most of Compeq's foreign exchange profits and losses are incurred from conversion of USD to NTD or RMB. Past exchange rate trends showed us that exchange rates are almost impossible to predict with any prediction. Natural hedging of asset against debt was therefore used where possible by Compeq last year. Pre‐sale of USD at the forward rate was also used to reduce exchange risks. The hedging position is increased or reduced based on the trend of the USD exchange rate.
3. Inflation: There is currently no serious inflation problem in Taiwan so inflation does not have a material impact on our bottom line at the moment. Policy on engaging in high‐risk and highly‐leveraged investments, lending to a third‐party, guarantees and trading in derivate products, the main cause of profits
and losses, as well as future measures: Compeq's only guarantees are for 100% held subsidiaries or investments. The risks are therefore limited and have led to no profit or loss to date. Trading in derivative products can be authorized by the Chairman under our company's "Acquisition or Disposal of Assets Procedure" but our current policy is to only engage in long‐term foreign exchange transactions for hedging purposes. Future trading in derivatives by Compeq will be mainly for hedging purposes as well. Trading for profit will be avoided to prevent major losses from errors in judgment.
Future R&D plans and planned R&D spending: 1. Compeq R&D enjoyed a great year in 2015 with positive growth in both overall revenues and R&D investment. Future R&D will continue to focus on the
development of new technologies in order to cope with fast‐changing product requirements and challenges. 2. Our R&D focus in High Density Interconnection (HDI) PCBs and Rigid‐Flex PCB products and technologies include: ultra‐thin dielectric layer, thin circuit, via filling
plating, HDI, embedded device, ink jet printing, mSAP, high‐speed high‐resolution LDI equipment, and precision alignment equipment. These are used to meet the challenges of light, thin, small and compact multi‐purpose smart devices. Though growth is beginning to level out, the smart device and mobile communications market is expected to sustain positive growth of the global PCB market in the future and stimulate the demand for high value‐added PCBs. The transmission and processing of Big Data means that the materials used in infrastructure PCBs are now evolving towards higher frequencies and speeds. Higher frequencies generate more heat so heat dissipation has become another key R&D area. HLC developments are therefore putting increasing emphasis on high‐frequency materials, low loss materials, heat resistant materials, development of thermal conductive materials, heat dissipation management, and highly reliable PCBs.
3. In response to the rapidly growing demand from the China market and to enhance customer service through more timely technical support, Compeq has set up a R&D branch in China to set up a local support team for technical R&D and introduction of new products. We have also expanded our new plant in Chongqing to focus on the production of mid‐ to high‐end HDI products as part of Compeq's overall production strategy. We are optimistic about the future of the PCB industry. We are also determined to continue developing innovative technologies and new products. Dependable quality, comprehensive services and competitive prices will be used to boost our profitability so we can give back to society and investors.
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3. Corporate Social Responsibility at Compeq
3‐1. Corporate Social Responsibility at Compeq 3‐2. Stakeholder and Material Aspect Identification
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3‐1. Corporate Social Responsibility at Compeq
3‐1‐1. CSR Organization
A CSR task force was formed by Compeq in 2015 to respond to future trends and changes. The assignment of dedicated personnel to CSR activities across the company enables greater consistency and synergies from CSR management. At the same time, we also created CSR promotion organizations in each plant. The Compeq Chairman serves as the company owner, the executive VP of Administration serves as the CSR owner, and each plant manager serves as the CSR management representative of their plant. The functional managers at each plant serve as the labor, health and safety, environmental safety, ethics and management system representatives in turn. Finally, we also seek the input of workers so union or labor representatives are part of the organization as well.
CSR OwnerChairman
CSR Management Representative
Executive Vice President of Administration
Plant CSR RepresentativePlant Manager
Labor Management Representative
Ethics Management Representative
Management System
Management Representative
Environmental Management Representative
Health and SafetyManagement Representative
Company Union/Labor
Representative
Corporate Social Responsibility
Compeq CSR Organization Chart
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3‐1‐2. Social Responsibility Policy
We believe that CSR is becoming increasingly important at Compeq. Apart from forming suitable organizations to realizing continuous improvement, Compeq's social responsibility policies has also been drawn up. At Compeq, we have always striven to fulfill our responsibility as a corporate citizen on employee care, environmental protection, employee health and safety, and social engagement in order to follow the path of sustainable development.
Conform to CSR‐related international regulations as well as the labor, environmental protection and labor safety regulations set by the local governments to fulfill our responsibilities as a corporate citizen.
Assist suppliers and require them to meet the standards of the CSR policy.
Maintain and promote long‐term partnerships between the company and employees, unions, stakeholders, and the local community.
Fulfill the commitments of our environmental safety policy as well as balance corporate growth with environmental protection to realize the goal of sustainable operations.
Comply with the ethics policy and respect intellectual property rights.
Protect employees' human rights, ensure employee safety, promote the physical and mental health of employees, and protect the interest of employees and other stakeholders.
1
2
3
4
5
6
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3‐2. Stakeholder and Material Aspect Identification
3‐2‐1. Stakeholder Communications
Stakeholder participation and communication is very important. Effective engagement is an important issue that Compeq must consider as well. Compeq used the five principles of the AA1000 SES‐2011 Stakeholder Engagement Standard (dependency, responsibility, influence, diverse perspective, tension) to identify a total of 8 stakeholders: employee, union, customer, shareholder, supplier, government authorities, the media and local communities. Union is a new addition made this year.
Apart from distributing printed and electronic surveys to learn about the issues of concern to stakeholders for this report, the survey was also uploaded to our external website where stakeholders with an interest in Compeq can fill them out online. The design of the survey was based on the GRI G4 indicators and covered the three aspects of economy, environment, and society. Each aspect in turn contained multiple sub‐aspects and stakeholders could select multiple items they wish to see in Compeq's disclosure.
This report used the results of the survey to provide disclosure based on selected standards. Members of the Compeq CSR team also conducted risk assessment of each item (based on impact to Compeq) as well as cross analysis before making a decision on the material aspects.
The Five Principles
DependencyResponsibility
Influence
Diverse Perspective
Tension
Types of Stakeholders Identified by Compeq
Employees
Customer
Shareholder
Supplier
Local Communities
Government authorities
Media
Union
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3‐2‐2. Stakeholder Communication Channel
Stakeholder Implications for Compeq Communication Method or Channel Communication Frequency Communication Issue ues of Concern in CSR Survey Employees An important asset for the
company. The company provides a range of benefits while employees contribute their efforts and grow with the company.
Town Hall Meeting Complaints hot line, opinion
box, e‐mail Internal/External Website Company bulletins/Weekly
meeting report Corporate Social Responsibility
Questionnaire
Ad Hoc Contact by Employee Ad Hoc Publication Every Week Every Year
Remuneration, benefits Occupational Health and
Safety Training and Education Labor Relations Employee Issues
Labor Practices and Decent Work
Labor Relations Business and Financial
Performance Customer Health and
Safety Environmental Compliance
Union Labor representatives produced through via elections held by company employees who propose reasonable employee benefits on their behalf and engage in reasonable, positive communication with the company.
Union Directors and Supervisors General Meeting of Labor
Representatives Employer‐Employee Meeting Corporate Social Responsibility
Questionnaire
Every Quarter Every Year Every Quarter Every Year
Labor Relations Employee Issues
Business and Financial Performance
Labor Practices and Decent Work
Labor Relations
Customer Plays an extremely important role in the company's production and management activities. Customer requirements should be satisfied as much as possible.
Email External Website Employee Satisfaction survey Client Audit Corporate Social Responsibility
Questionnaire
Ad Hoc Ad Hoc Every Year Every Year/Ad Hoc Every Year
Product quality Product pricing Trade secrets Greenhouse gas
emissions management Green Products Corporate Social
Responsibility
Material Management Business and Financial
Performance Labor Practices and Decent
Work Environmental Compliance
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Stakeholder Implications for Compeq Communication Method or Channel Communication Frequency Communication Issue ues of Concern in CSR Survey Supplier Partners who exist in
symbiosis with the company and maintain a mutually beneficial relationship over the long‐term.
Email Supplier Monthly Review
Meeting Supplier Audit and Assessment Corporate Social Responsibility
Questionnaire
Ad Hoc Monthly Every Year Every Year
Supply chain management (delivery date, quality, unit price, labor rights, environmental safety requirements, etc.)
Corporate Social Responsibility
Business and Financial Performance
Supplier Human Rights Management
Materials Effluent and Waste
Management Supplier Environmental
Assessment Investor
(Shareholder) Shareholders are those hold shares in the company. They can also be referred to as investors. Those who hold shares in the company have the right to attend and vote in the general shareholders' meeting.
General shareholders: Shareholders Meeting Annual Report Information Publication Website Corporate Social Responsibility
Questionnaire Institutional investors: Company Visit Seminar Corporate Social Responsibility
Questionnaire
Every Year Ad Hoc
Corporate Governance Business performance Transparency Corporate Social
Responsibility
Business and Financial Performance
Labor Practices and Decent Work
Environmental Compliance
Government authorities
The company is bound by the laws that the government passes.
Correspondence of official documents
On‐site interview and inspection by competent authority
Corporate Social Responsibility Questionnaire
Ad Hoc Environmental safety/labor legislation compliance
Political contribution Energy and water
conservation
Labor Relations Local Community
Management Customer Health and
Safety Environmental Compliance
Media Mutual dependence. The company provides the media with relevant information which is then published, allowing the company to communicate
Press conference Press release Corporate Social Responsibility
Questionnaire
Ad Hoc Social issues Business performance Corporate Social
Responsibility
Business and Financial Performance
Environmental Compliance Labor Relations Product Compliance Personnel Recruitment and
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Stakeholder Implications for Compeq Communication Method or Channel Communication Frequency Communication Issue ues of Concern in CSR Survey with its stakeholders. Retention
Local Communities
1. The company bears a certain level of responsibility to the local community. Noise, effluent, emissions or ecological impact from production activities must all conform to the law to maintain good community relations.
2. Community relations can have a direct impact on the company's image.
Local community organization School Corporate Social Responsibility
Questionnaire
Ad Hoc Social participation Polluting (air, water,
waste) emissions Noise Management Ecological impact
Environmental Compliance Environmental
Management Business and Financial
Performance
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3‐2‐3. Issue Survey and Response
As above, Compeq identified 8 types of stakeholders: employee, union, customer, supplier, government authorities, shareholder, the media and local communities. Union was added as a type of stakeholder this year mainly because the Compeq company union has been established for many years. Apart from convening monthly employer‐employee meetings, town hall meetings for union members are also held when there are any developments on material issues. Union members in turn strive to secure better benefits for members. The union was therefore added as a stakeholder type this year to understand the issues of concern to union members.
As before, we distributed surveys this year to understand the main issues of concern to stakeholders. The survey process consisted of five steps. Step 1 was the design of the survey based on G4 indicators and its distribution to each type of stakeholder. Step 2 was the analysis of risk and impact by members of the CSR team (including the labor, occupational safety and environmental aspects). The indicators analyzed included severity, hazard probability and effectiveness of risk control. Step 3 was the recovery and compilation of stakeholder survey responses. Step 4 was cross analysis on degree of impact and issues of concern to stakeholders in order to finalize the issues of concern. Step 5 was to begin authoring the CSR report for 2015.
This year's survey was distributed to employees at the plants in China as well including the Huizhou, Suzhou and Chongqing plants. A total of 748 surveys were issued with 244 recovered for a response rate of 33%. This was 22% lower than last year (55%). This was due to 300 more copies of the survey being issued this year which led to a lower response rate. In the future, greater publicity will be given to
the survey to boost the overall response rate. Out of the different stakeholder types, union and investor response rates were the highest at 100%, followed by the media (70%) then Compeq Taiwan employees (41%). The data showed that while the overall response rate was lower, the recovery rate for some stakeholder types has increased significantly.
Investigation Process for Issues of Concern at Compeq
Author report
Survey recovery
Cross analysis and identification of issues of concern
Survey distribution
Risk and impact analysis by CSR
team
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3‐2‐4. Result of Materiality Analysis
Based on the above, the Compeq procedure of determination of materiality was based on issues that scored above the weighted average in terms of stakeholder concern and impact on the company. As shown on the right, a total of 20 issues were determined to be material issues. The issues in each category are shown in the table below.
For the sake of more complete coverage Compeq also provided voluntary disclosure on five issues (marked with a ★ in the following table) including Supplier Environmental Audit, Training and Education, Employee Diversity and Equal Opportunity, Labor Grievance Mechanism and Supplier Human Rights Audit. Disclosure therefore covers 25 issues.
As shown in the table below, three issues were added after analysis in this report including Market Performance, Environmental Compliance and Local Community Management. These highlighted the increasing stakeholder concern with how the standard of remuneration offered by the company affects overall market performance as well as increasing attention on environmental compliance. Stakeholders also wish to know more about the environmental protection measures taken for the sake of the local communities. Analysis of Material Issues
A. Economic Aspect B. Environmental Aspect C. Labor Aspect D. Human Rights Aspect E. Social Aspect F. Product Responsibility Aspect
1. Business and Financial Performance
3. Raw Materials 11. Labor Practices and Decent Work
17. Non‐Discrimination Management
19. Local Community Management (New)
22. Customer Health and Safety
2. Market Performance (New)
4. Energy 12. Labor Relations 18. Supplier Human Rights Audit★
20. Anti‐Corruption Management
23. Product and Service Labeling
5. Water Resource 13. Occupational Health and Safety 21. Ethics Compliance 24. Customer Privacy Management
6. Emissions 14. Training and Education★ 25. Product Compliance 7. Effluent and Waste
Management 15. Employee Diversity and Equal Opportunity★
8. Environmental Compliance (New)
16. Labor Grievance Mechanism★
9. Environmental Management
10. Supplier Environmental Audit★
High
LowLow
High
Impact on the com
pany
Degree of Stakeholder Concern
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3‐2‐5. Boundaries for Material Issues of Concern
Aspect Sub‐aspect
Internal External
Taiwan Plants China Plants
Luzhu Plant Dayuan Plant Huizhou Plant Suzhou Plant Chongqing
Plant Supplier Customer Local Communities
A. Economic Aspect
1. Business and Financial Performance
◆ ◆ ◆ ◆ ◆
2. Market Presence ◆ ◆ ◆ ◆ ◆ ◆ ◆
B. Environmental Aspect
3. Material Management ◆ ◆ ◆ ◆ ◆
4. Energy Management ◆ ◆ ◆ ◆ ◆
5. Water Resource Management
◆ ◆ ◆ ◆ ◆ ◆
6. Emissions ◆ ◆ ◆ ◆ ◆ ◆
7. Effluent and Waste Management
◆ ◆ ◆ ◆ ◆ ◆
8. Environmental Compliance ◆ ◆ ◆ ◆ ◆
9. Environmental Management ◆ ◆ ◆ ◆ ◆
★10. Supplier Environmental Audit
◆ ◆ ▲ ▲ ▲ ◆
C. Labor Aspect
11. Labor Practices and Decent Work
◆ ◆ ◆ ◆ ◆
12. Labor Relations ◆ ◆ ◆ ◆ ◆ ▲ ▲
13. Occupational Health and Safety
◆ ◆ ◆ ◆ ◆ ▲ ▲
★14. Training and Education ◆ ◆ ◆ ◆ ◆ ▲ ▲
☆ Indicator voluntarily disclosed by Compeq ◆ Material issue disclosed in this report ◇ Material issue planned for future disclosure ▲ Important issue with partial disclosure
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Aspect Sub‐aspect
Internal External
Taiwan Plants China Plants
Luzhu Plant Dayuan Plant Huizhou Plant Suzhou Plant Chongqing
Plant Supplier Customer Local Communities
★15. Employee Diversity and Equal Opportunity
◆ ◆ ◆ ◆ ◆ ▲ ▲
★16. Labor Grievance Mechanism
◆ ◆ ◆ ◆ ◆
D. Human Rights Aspect
17. Non‐Discrimination Management
◆ ◆ ◆ ◆ ◆ ▲ ▲ ▲
★18. Supplier Human Rights Audit
◆ ◆ ◆ ◆ ◆
E. Social Aspect
19. Local Community Management
◆ ◆ ▲ ▲ ▲ ◆
20. Anti‐Corruption Management
◆ ◆ ◆ ◆ ◆ ◆
21. Ethics Compliance ◆ ◆ ◆ ◆ ◆
F. Product Responsibility Aspect
22. Customer Health and Safety ◆ ◆ ◆ ◆ ◆ ◆
23. Product and Service Labeling
◆ ◆ ◆ ◆ ◆ ◆
24. Customer Privacy Management
◆ ◆ ◆ ◆ ◆ ◆
25. Product Compliance ◆ ◆ ◆ ◆ ◆ ◆
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3‐2‐6. 2015 Social Responsibility Progress The Compeq CSR team defines overall CSR targets each year based on the results of risk assessment. The targets cover the labor, environmental, and social aspects.
The target completion rate and progress for the Taiwan plants as a whole in 2015 are shown in the following table. Overall target completion rate and progress are also reported to the CSR representatives and CSR committee members at the management review meetings held every six (6) months.
2015 Target Completion Rates
Target Type Target Plan Performance Benchmark Completion Rate (%)
Result
Supplier Corporate Social
Responsibility Management
On‐site audit of Grade A Suppliers (Large Transactions)
85% completion rate required 95%
1. In 2015, there were 15 Grade A material suppliers and waste contractors, 13 of which were audited for an audit rate of 86%. Audits were deferred for the remaining two due to distance. 2. In 2015, there were 6 labor contractors, of which 6 were audited for a completion rate of 100%. 3. In 2015, there were 5 local foreign worker agencies, of which 5 were audited for a completion rate of 100%.
Written Self‐Assessment for Grade B Suppliers (Medium Transactions)
100% completion rate required 100% In 2015, there were 21 Grade B suppliers. The self‐assessment form was completed and returned by all 21 (100%).
Signing of Declaration by Grade C Suppliers (All Suppliers)
100% completion rate required 100% In 2015, there were 33 Grade C suppliers. The self‐assessment form was completed and returned by all 33 (100%).
High‐Risk Suppliers Required to Carry Out Conflict Mineral Investigation
100% completion rate required 100% In 2015, the CFSI investigation form was completed and returned by 100% of high‐risk suppliers (those that use 3TG).
Customer Relations
Meet Customer Expectations on CSR Audit
No serious deficiencies 100% In 2015 a total of 8 customer audits were carried out with no serious deficiencies identified.
Improve Customer Satisfaction
Customer satisfaction is increasing every year
100% Customer satisfaction increased by 1.3% in 2015 compared to 2014.
Environmental Protection
Environmental Compliance 100% compliance with environmental regulations
83%
Renewal of emissions operating permit: Two plants up for renewal but one has not yet done so. Renewal of Effluent discharge permit: Renewed at both plants. Update of waste management plan: Waste management plan has been updated.
Air Pollution Prevention 100% compliance with environmental regulations
100% Exhaust for metallic smoke from laser drilling machine connected to pollution control equipment
Waste Reduction and Recycling
Recovery and reuse of waste liquid with high copper content
100% Addition of pre‐processing equipment and electrolytic recovery system
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2015 Target Completion Rates
Target Type Target Plan Performance Benchmark Completion Rate (%)
Result
Water Pollution Prevention
1. Increase biological wastewater treatment efficiency to 80%. 2. Increase biological wastewater treatment efficiency to 80%. 3. Reduce SS concentration in discharge. 4. Upgrade early‐warning capability for water quality anomalies.
95%
1. Upgraded filter materials and aerial equipment for biological system. Biological treatment efficiency has been increased to over 82%. 2. Biological pre‐chemical settling tank added. 3. Fast filtration towers have been completed for some of the filtration equipment and only needs to be connected to be put into service. 4. Automated continuous monitoring for discharged water implemented. SMS alerts also added.
Soil/Ground Water Pollution Prevention
Prevent effluent within the plant from polluting the soil/ground water.
70%
1. Sewer pipes have been installed and connected in the plant's drainage system. FRP coating has been applied to the internal drains. 2. Construction was carried out in phases in concert with modifications to intakes and equipment shutdowns. Due to delays with cleaning the sludge from the bottom of pools, only 4 pools out of 10 have been coated so far and work will continue.
Energy and Resource Conservation
1. Reduce water consumption by 3%. 2. Reduce electricity consumption by 3%.
50%
1. Water consumption/production (Ton/SF) in 2015 was 0.13. This represented a reduction of 31.4% on the 0.19 in 2014 so the target was met. 2. Electricity consumption/production (KWH/SF) was 10.49. This represented a reduction of 0.7% on the 10.56 in 2014 so the target was not met.
Health and Safety
Enhance Safety Awareness of Personnel
1. Promote fire damage prevention plan. 2. Promote emergency response plan.
81%
1. Fire risk assessments were completed for each zone by each unit during the year with progressive improvements made to high‐risk areas. Due to existing partitions and conduits at the plant however, improvements to some of the thermal insulation and fireproof fillings will take more time to implement. Completion is scheduled for 2016 and will future maintenance will be handled by inclusion in the inspection system. 2. Active exercises were completed by each unit this year. Personnel now have a better understanding of the response procedure and are more cooperative this year as well. This in turn increased the importance of managers to the exercises.
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2015 Target Completion Rates
Target Type Target Plan Performance Benchmark Completion Rate (%)
Result
Continuous Improvement of the Management System and Improved Hardware Planning
1. Improve the safety of work tools to prevent injury due to poor tool design. 2. Improve the equipment safety interlocks for inter‐level conveyor systems. 3. Review the industrial safety management system SOP to ensure it reflects actual usage. 4. Unify the safety thresholds and installation of existing chemical monitoring instruments. 5. Establish a statutory verification and control system so that CMCT regulatory audit results can be shared and centrally managed.
100%
1. Safeguards were installed for grinding and cutting equipment. This ensures safe tools for workers and reduces the chance of injury. 2. Improvements to conveyor equipment safety devices were completed to prevent boards and frames from jamming or pushing against each other during transportation. This reduce the risk of personnel injury as well. 3. A complete review of SOPs related to system operation was completed this year to better harmonize practices and regulations. 4. Gas detectors and gas detection standards were discussed with the engineering units this year. New standards will be issued in the future. 5. Regulatory audits were standardized this year. This improved the completeness of information flow so that regulatory audits can take both plants into more consideration as well.
Developing and Including Procedures into the Management System In Response to New Regulations
1. Ensure that the current routine elevator inspection procedure matches statutory standards. 2. Ensure that the use of chemical products within the plants conform to the requirements on chemical classification and management.
100%
1. The routine elevator inspection procedure was completed this year. This provided a more unified basis for implementation and inspection. 2. Chemical classification and management was combined with the existing environmental testing data this year. Basic compliance with regulatory requirements have been achieved. Further operational planning is necessary to simplify user implementation.
Employee Relations
Renewing SA8000 Half‐yearly Certificate
Pass the half‐yearly SA8000 audits. 100% Two SA8000 half‐yearly audits were conducted in 2015. Both were successfully passed and certification issued.
Continued Reduction in Abnormal Work Hours
The baseline is one rest day a week and an anomaly rate of no more than 5% per month.
90% The work hours for some months in 2015 still exceeded the 5% anomaly rate. Compeq will continue to track this problem.
Continue to Promote and Keep Employee Grievance Channels Open
100% of employees are aware of the company's grievance channels and mechanism.
90% During 2015, random interviews during internal audits found that around 10% of employees were still unaware of the company's grievance channels.
Continue to Build a Friendly and Harmonious Workplace
Regularly convene the relevant meetings each quarter.
100% In 2015, a total of four meetings were convened.
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3‐2‐7. Review and Response Strategies for 2015 Social Responsibility Targets Not Met
2015 Target Completion Rates
Target Type Target Plan Performance Benchmark Completion Rate (%)
Reason for Non‐Completion and Response Strategy
Environmental Protection
Environmental Compliance 100% compliance with environmental regulations. 83%
Reason for non‐completion: Plant 1 failed to renew its emissions operating permit. Improvement strategy: Added to the 2016 annual plan and renewal is expected in Q1.
Water Pollution Prevention
1. Increase biological wastewater treatment efficiency to 80%. 2. Increase biological wastewater treatment efficiency to 80%. 3. Reduce SS concentration in discharge. 4. Upgrade early‐warning capability for water quality anomalies.
95%
Reason for non‐completion: Fast filtration towers have been completed for some of the filtration equipment and only needs to be connected to be put into service. Improvement strategy: The personnel in charge will be directed to complete construction on time.
Soil/Ground Water Pollution Prevention
Prevent effluent within the plant from polluting the soil/ground water.
70%
Reason for non‐completion: Delays in clearing of sludge from the bottom of pools. Improvement strategy: The personnel in charge will be directed to complete construction on time
Health and Safety
Enhance Safety Awareness of Personnel
1. Promote fire damage prevention plan. 2. Promote emergency response plan.
81%
Reason for non‐completion: Some of the thermal insulation and fireproof fillings have not yet been completed. Improvement strategy: The personnel in charge will be directed to complete construction on time.
Employee Relations
Continued Reduction in Abnormal Work Hours
The baseline is one rest day a week and an anomaly rate of no more than 5% per month.
90%
Reason for non‐completion: Temporary increase in manpower demand and personnel not being trained in time during some months led to some personnel having to work over time. Improvement strategy: Manpower management will be implemented for 5% of contract employees.
Continue to Promote and Keep Employee Grievance Channels Open
100% of employees are aware of the company's grievance channels and mechanism.
90%
Reason for non‐completion: Lack of knowledge and education among new employees. Improvement strategy: Revise teaching materials for new employees to include related information.
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4. Supply Chain Management
4‐1. Supplier Management 4‐2. Supplier Production/Quality Selection, Evaluation and
Management 4‐3. Supplier Management Philosophy
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4‐1. Supply Chain Social Responsibility Management
Suppliers are important Compeq's important partners. In pursuing the goal of sustainable development together, Compeq hopes that all suppliers, whether they are an important investment partner or general suppliers, can become long‐term Compeq partners. Suppliers are required to abide by Compeq’s CSR requirements for the “Labor”, “Health and Safety” and “Environmental” aspects. The emphasis on the importance of people as well as corporate commitments to training, health and safety, working conditions and employee satisfaction. We require all suppliers to sign the CSR declaration. The declaration covers labor rights such as workers' freedom of association, child labor, ban on non‐compulsory labor and non‐discrimination. In occupational health and safety, it requires compliance with international standards such as OHSAS18001 while environmental aspect requires compliance with ISO14001, energy management and emissions management regulations. Ethics‐related requirements include respect for intellectual property, anti‐corruption and non‐use of conflict minerals.
The corporate structure has also changed from multinationals to global enterprises. Subcontractors and suppliers are all affected as well. These challenges mean that Compeq now take the social responsibility of the entire supply chain into account. We hope that suppliers can make certification on standards such as SA8000, EICC, OHSAS 18001, ISO 14001 and ISO 14064‐1 their ultimate target.
4‐1‐1. Supply Chain Type
Due to Compeq's more complicated product structure and attributes, our supply chain includes not only material and equipment suppliers but also suppliers for environmental protection, manpower agencies and contract manufacturers. The environmental, labor and social risks of each supplier also vary. In response to these risks, Compeq now practices CSR system management of suppliers and has implemented graded controls as outlined below:
Supplier Type Material SupplierEnvironmental Protection Contractor
Employment Agency
Number of Suppliers Around 1912 Around 48 Around 11
Percentage (%) 97% 2% 1%
Risk of Environmental
Impact
1. Failure to apply for proper work permits
2. Failure to comply with regulations None
Risk of Labor ImpactViolation of working time regulations
1. Violation of labor regulations
2. Involvement in employment discrimination
1. Violation of labor regulations
2. Involvement in employment discrimination
Risk of Health and Safety Impact
Not wearing suitable protective equipment as required by law None
Risk of Community Impact Noise and Air Pollution None
Change in 2016 Targets: Basis of transaction classification changed from amount of transaction to high‐risk
On‐Site Audit of High‐Risk Grade A Suppliers
100% of Grade B Suppliers Required to Complete and Return Self‐Assessment Form
100% of Grade C Suppliers Required to Sign and Return Declaration
High‐Risk Suppliers Required to Carry Out Conflict Mineral Investigation
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4‐1‐2. Supply Chain Social Responsibility Priorities
Compeq divides suppliers into three grades. Grade C suppliers must sign the Compeq CSR declaration, Grade B suppliers must not only sign the declaration but also fill out the Compeq CSR self‐assessment form. The pass score for self‐assessment is 80. Grade A suppliers must not only sign the declaration, score over 80 on the self‐assessment form but also undergo an on‐site audit by the Compeq CSR team.
Compeq's supplier audit standard, based upon the SA 8000 and EICC guidelines, covers labor, occupational safety, environment, ethics and management systems. In 2015, a total of 18 Grade A suppliers (including materials, waste and manpower agencies) were audited for an overall completion rate of 86%.
4‐1‐3. Supplier Social Responsibility Audit Results
Compeq detected several deficiencies with existing Grade A suppliers with most being related to working time. For the above deficiencies, Compeq not only required the supplier to report on the corrective actions taken but will also conduct a re‐inspection to ensure that the deficiency has been fixed. No suppliers were terminated in 2015 as a result.
4‐1‐4. Waste Contractor Environmental Audit Results
Waste contractors are in the high‐pollution industry so supplier environmental audits were carried out for risk reduction. In 2015, waste contractors were targeted for monitoring and 6 were audited. The audit reports were also provided to the contractors for improvement. Annual audits will be carried out in the future and waste contractors mentored to raise their overall CSR awareness. No contractors were terminated as a result in 2015.
4‐1‐5. HSF Requirements and Procurement Management
When reviewing new materials, we require the supplier to provide the HSF test report, HSF non‐use of restricted substance declaration, component analysis or MSDS documentation from an independent third‐party (e.g. SGS). These are referred to as the 3 HSF documents. The material must also be checked for compliance with Compeq's HSF restricted substance specifications. Preference is given to suppliers with IECQ/QC 080000 certification and their own HSF management system.
4‐1‐6. Types of Material Procurement
Printed circuit boards use many different raw materials in their manufacturing process. The main materials used by Compeq in terms of procurement amount and volume are copper clad substrate, prepreg, copper foil and resin coated copper foil. These represent 40% of a PCB's basic composition. Secondary raw materials include dry film, ink, solder mask, bit and RF material. The following procurement quantities are for the company as a whole. The table shows a general increase in procurement for 2015 compared to 2014 though Copper Clad Laminate appears to be on the decline.
2015 Material Procurement Quantities
Raw Materials Amount Purchased in
2013
Amount Purchased in 2014
Amount Purchased in
2015 Copper Clad
Laminate (CCL) 5,873,000 sheets 5,764,000 sheets 5,252,000 sheets
Prepregs (PP) 69,400 rolls 75,200 rolls 75,300 rolls
Copper Foil (CF) 1,550 tonnes 1,650 tonnes 1,670 tonnes
Resin Coated Copper Foil
(RCC)
152,000 sheets 108,000 sheets 115,000 sheets
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4‐1‐7. Supplier Production and Quality Evaluation
Compeq has defined a set of review guidelines to determine if a supplier's production capacity can meet our requirements. Through internal reviews at the plant, Compeq can introduce the most competitive suppliers and ensure stable quality. By evaluating the required materials in advance, we can guarantee the product quality, develop new materials to reduce costs, boost production efficiency or product quality, develop new suppliers to diversify risk, and also select suppliers that are not just competitive in terms of technology but also in terms of management and cost. In order for the company to acquire raw materials of appropriate quality, quantity and price at appropriate time in the appropriate location, allowing smooth production and ensuring the quality of delivery and delivery deadline, creating profit for the company and establishing a mutually beneficial relationship with the suppliers, we select our suppliers in accordance with the following principles: 1. Suppliers with complete system, solid finance and good
reputation. 2. Suppliers whose sources, equipment scale,
technology and delivery capability meets requirements.
3. Suppliers with a complete quality assurance system, essential inspection equipment as well as strong understanding and support for quality concepts.
4. The operator has strong willingness to work with the company.
5. Good 4S with appropriate geographical traffic. (Support for local suppliers)
6. For suppliers of controlled, toxic/hazardous materials, compliance with government and safety regulations should be taken into account.
7. Compliance with Compeq's supplier CSR requirements
4‐1‐8. Supplier Management Philosophy
Reasonable evaluation standards and methods are used to determine supplier eligibility and suitability to ensure that suppliers are in the best condition. Supplier capacity (quantity and delivery time), quality standard, market price and social responsibility are regularly examined with the results provided to suppliers for future reference, review and improvement. Our philosophy for suppliers:
1. Equality 2. Harmonious relationship 3. Sincerity 4. Reduce cost and maintain reasonable profit 5. Respect each other’s intellectual property rights 6. Grow together for sustainable development Compeq strives to play the role of the good corporate citizen
and fulfill our corporate social responsibility in recent years. To realize this objective and fulfill our CSR commitments, Compeq not only continues to embrace CSR in our internal practices but also expects to cooperate with suppliers on realizing the same objective through shared focus on social responsibility and corporate ethics.
Supplier review process
Request information from supplier
Convene units to conduct evaluation (Materials, R&D
etc.)
Determine supplier eligibility based on
written/on‐site evaluation
Approval
Create supplier master file
Issue deadline for improvement
Determine eligibility after improvement
Supplier not approved
Approved
Not Approved
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5. Customer Relations
5‐1. Customer Relations Management 5‐2. Green Product
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5‐1. Customer CSR Management Targets
Additions in 2016 Targets: Target 1 and 3 added because previous targets were mainly aimed at satisfying customer expectations. Self‐management is however also important. Therefore, compliance with CSR guidelines and maintaining SA 8000 certification were added.
5‐1‐1. Regulatory Compliance
Compeq complies with all applicable international and local government regulations, code of ethics and practices related to intellectual property rights. These include compliance with labor legislations and human rights, trade secret management, protection and management of intellectual property rights, protection of information security, Antitrust regulations, FCPA, Antitrust Law and confidentiality agreements.
In response to the latest CSR guidelines issued by our customers, Compeq has drawn up corresponding management regulations such as working hour requirements and improved health and safety conditions in order to fulfill the expectations of our customers' annual audits.
In 2015, our Taiwan, Huizhou and Suzhou plants underwent 8, 4 and 6 human rights inspections respectively. These plant inspections examining Compeq's obligations on human rights all produced positive results and met our customers' expectations.
Improve overall customer satisfaction
Maintain SA8000 certification
Pass customer CSR/EICC audits
Comply with customer CSR/EICC/SA8000
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5‐1‐2. Confidentiality of Customer Information
A business must continue to seek out internal and external resources in order to survive and prosper. During this process, technology R&D and innovations as well as management reforms all form important intangible assets that a business cannot afford to ignore. Internal controls and legal protection go hand‐in‐hand with each other when it comes to turning intangible assets into physical assets and competitive advantages. Other than trademarks, all original content derived from an enterprise's intangible assets such as patents, copyrights and IC circuit layouts are all trade secrets. Protection of trade secrets is therefore fundamental to corporate IP management. Increasing emphasis is now being given to the protection of trade secrets by local and foreign companies. The management strategy for trade secrets is therefore critical to R&D innovation, technology transfers and internationalize in business.
The importance we assign to customers' confidential information and privacy is realized through our intellectual property protection mechanism. We require our employees and suppliers to follow our IP protection policy on technologies, inventions, original work, materials, documents and data to keep business secrets secure. We have also established a set of management rules covering information that the customer asked us to keep confidential and confidentiality agreements signed with the customer. By ensuring confidentiality is maintained by our personnel in the course of their work, we protect the business secrets and interests of our customers.
Compeq uses internal training and education to protect the intellectual property belonging to Compeq and our customers. This includes educating each employee about Antitrust regulations, trade secrets and patents. Every new employee must sign upon arrival the "Employee Consent for Attribution of Intellectual Property Right, Confidentiality Obligation and User Policy for Information and Network Resources" to guarantee that confidential customer documents and data are not revealed to third‐parties. All employees have now undergone anti‐corruption and related ethics training. There were no violations of customer privacy by Compeq in 2015.
5‐1‐3. Customer Satisfaction
Compeq follows the principle of "Quality First, Client First" and is continuing to improve our cooperation with the clients. Compeq's business unit conducts regular (annual) satisfaction surveys of major clients. Statistical analysis is used to review and monitor various elements that affect client satisfaction. This covers product technology R&D, quality, delivery lead‐time, price and non‐use of harmful substances. The business department provides a review report based on the results of the survey. The relevant personnel then conduct a review to determine what improvements are necessary. Overall customer satisfaction in 2015 was 77.7%, an improvement of 1.3% over 2014. Neither did we incur any serious financial penalties for violation of laws on service provision during the year.
To improve the satisfaction of key customers and ensure a solid working
relationship between both parties, it is now more important than ever to identify the factors that affect customer satisfaction so they can be improved upon or eliminated to improve Compeq's competitiveness in the market. Factors that affect customer satisfaction were identified through various means including the results of customer audits and evaluations, customer's complaints on product quality, and Compeq's customer surveys. Customer satisfaction feedback received is also passed on to the relevant departments during management reviews. These are then reviewed and resolved by the relevant functional departments in order to improve customer satisfaction.
71.40%
76.40% 76.80% 76.40%
77.70%
2011 2012 2013 2014 2015
Ethics policy
Clean management: Carry out all obligations in an ethical, honest and proper manner. All employees must also avoid conflicts of interest between their personal life and work.
No improper benefits: All employees are required to not provide or accept benefits in any form from the company’s business partners especially if these benefits may affect the objectivity and fairness of business decisions They must also avoid violating business ethics through corruption or forgery.
Transparency: The company shall voluntarily disclose in full all contact with stakeholders where it does not violate company regulations or the law.
Intellectual property rights: All employees promise to respect the laws and regulations relating to intellectual property rights.
Fair trade, advertising and competition: Committed to fair trade and non‐use of illegal methods such as false advertising in the market.
Confidentiality mechanism: Protect the business secrets, sales and technical information of customers, suppliers and third parties. Unauthorized leaks to a third‐party are prohibited.
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5‐2. Green Product 5‐2‐1. HSF Management
Every country around the world is making efforts in environmental protection. Most countries have now passed legislation banning the use of substances harmful to the human body and the environment.
Hazardous Substance Free (HSF) includes requirements under Restriction of Hazardous Substance (RoHS), Halogen Free and Registration, Evaluation, Authorization and Restriction of Chemicals (REACH). To ensure that Compeq reduces or prohibits materials within the prescribed deadline, protecting the environment of the earth while satisfying customer requirements and lowering the impact of corporate activities to the biological environment, we perform and execute the restricted substance management system.
The company established the "HSF Hazardous Substance Management Regulations" to serve as the basis for the execution of the HSF Management System in the plants. The scope of management covers RoHS, China RoHS, WEEE, REACH, Halogen Free requirements. The
Luzhu and Huizhou Plants also satisfy international standard IECQ QC080000. Independent certification bodies are also commissioned to conduct regular external audits of the plants and renew the certification to ensure system effectiveness. Our company products are 100% in compliance with environmental protection marks.
Apart from internal adherence to HSF requirements, Compeq also expects all of suppliers to sign the "Statement of Non‐Use of Prohibited/Restricted Environmental Substances" to ensure that suppliers do not violate HSF regulations of any country during production, manufacturing, packaging, storage and transportation. Suppliers are also expected to conform fully with Compeq's HSF requirements. Apart from the above statement, suppliers are required to declare the non‐use of hazardous substances and have their claim verified by Compeq inspection.
Compeq had no customer complaints due to violation of international green
product standard by any product in 2015. There were also no significant fines due to violation of any legislation related to product provision and use.
Green Product Certification at Compeq Plants Compeq Green Product Certifications Verified and Non‐Verified
Region/Item Taiwan Plants China Plants
Luzhu Plant
Dayuan Plant
Huizhou Plant
Suzhou Plant
Chongqing Plant
UL94V‐0
RoHS 2.0
Halogen Free
REACH/SVHC
QC 080000
Green Partner (sony、samsung)
Greenhouse Gases (GHG)
5‐2‐2. REACH/SVHC Management
We conform to the RoHS directive of the European Union and customer requirements for control of harmful substance. Our plants have been audited by several customers, including Japanese companies and various domestic brand‐name companies. The green purchasing standard has led to customer
recognition of Compeq's effective management of hazardous substances.
Safety represents the largest challenge in the introduction of new products into the market. Compeq has passed UL Certification and materials prepared for certification conform to customer requirements. Regular factory inspections are also carried out to ensure the safety of certified products. We are 100% compliant with UL 94‐V0 or 94‐V1 safety requirements.
Plant manager
HSF Management System
R&D Operations Management
Manufacturing HSF project team
Quality Assurance
Quality Management
Product Development Sales
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The HSF Restricted Substance Content Specification is shown below. These
apply to the packaging material provided by suppliers, products shipped to customers and packaging materials provided to customers:
Separate rules apply to the HSF content specifications of materials provided
by suppliers are shown. A new rule was added on 2015/9/1: d. Pthlalates (DEHP, BBP, DBP, DBP, DIBP) < 100 ppm. The complete specification is show n in the table on the right:
Targets COMPEQ HSF Restricted Substance Content Specification
Packaging materials Provided by Suppliers
Specifications for independent certification body test reports provided by packaging suppliers: Total concentrations of Lead (Pb), Mercury (Hg), Hexavalent Chromium (Cr6+) and Cadmium (Cd) must be < 80 ppm.
XRF testing specifications: Total concentration of lead (Pb), Mercury (Hg), Hexavalent Chromium (Cr6+) and Cadmium (Cd) < 100 ppm
Products Shipped to Customers
1. Must conform to RoHS 2.0 specifications:1‐1. Lead (Pb), Mercury (Hg), Hexavalent Chromium (Cr6+ ), Polybrominated biphenyls (PBBs), Polybrominated biphenyl ethers (PBDEs) <1000 ppm 1‐2. Cadmium (Cd) <100 ppm 2. Requirements for halogen‐free materials: Chlorine (Cl)< 900 ppm, Bromine (Br) < 900 ppm, total Chlorine (Cl) and Bromine (Br) concentration < 1500 ppm 3. If the customer has more rigorous HSF requirements then conform to the customer requirements.
Packaging for Customer Shipments
The requirements for packaging materials: Total concentration of Lead (Pb), Mercury (Hg), Hexavalent Chromium (Cr6+) and Cadmium (Cd) <80ppm
Targets COMPEQ HSF Restricted Substance Content Specification
Direct/Indirect Raw Materials Provided by Suppliers
To satisfy the requirements of all customers, the hazardous substance limits of all customers are compiled and the smallest value set as the threshold. If the minimum value is "N.D" then the Method Detection Limit (MDL) of independent certification bodies is set as the limit.
Specifications for independent certification body reports provided by material suppliers:
1. The RoHS requirements: a. Mercury (Hg), Hexavalent Chromium (Cr6+), and Cadmium (Cd) must be < 2 ppm; b. Poly‐ Brominated Biphenyls (PBBs) and Polybrominated Diphenyl Ethers (PBDEs) must be < 5 ppm; c. Lead in paints (Pb) < 50 ppm and other materials < 80 ppm ; d. Pthlalates (DEHP, BBP, DBP, DIBP) < 100 ppm.
2. Antimony (Sb) must be < 2ppm; 3. Some of the direct materials used in P/P, CCL, RCC, ink
(S/M, S/S, via solder‐mask) may contain Halogen and so do not need to conform to Halogen‐free requirements. Other direct and indirect materials must conform to Halogen requirements, i.e. Chlorine (Cl) <900 ppm, Bromine (Br) <700 ppm, total Chlorine (Cl) and Bromine (Br) concentration <1500 ppm.
4. The follow restrictions apply to direct materials (but not packaging materials):
a. Total organic tin compounds (TBT, TBTO, TPT, DBT, DOT, DBB) must be <5 ppm. Can be substituted by total available tin (Sn) test results (must be <5 ppm). If Sn is over the threshold then organic tin must be tested to see if it exceeds the threshold. b. Beryllium (Be) <2 ppm, Arsenic (As) <25 ppm, PFOA <50 ppm, PFOS <10 ppm. Direct raw materials: Organic tin compounds (TBT,
TBTO, TPT, DBT, DOT, DBB) must be < 1 ppm XRF testing specifications: See Incoming Material
Management Regulations (C00014651).
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5‐2‐3. Graph of Hazardous Substance Usage and Content
We are doing everything possible to reduce the user of hazardous substances. In terms of hazardous substance content, the table below shows that the percentage of Compeq products that use Halogen have gradually declined since 2011. Between 2015 and 2014 it even decreased by 19%. We also hope that the percentage of products with halogen content will continue to decrease every year until the ultimate target of 0% is reached.
Year Halogen Content (%)
Y2011 48%
Y2012 45.60%
Y2013 42.80%
Y2014 36.60%
Y2015 17.32%
0%
10%
20%
30%
40%
50%
60%
Y2011 Y2012 Y2013 Y2014 Y2015
Halogen Usage inPrevious Years
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6. Green Commitment
6‐1. Compeq Green Commitment
6‐2. Greenhouse Gas Management
6‐3. Air Pollution Prevention 6‐4. Energy Management6‐5. Water Resource
Management 6‐6. Waste Management
6‐7. Noise and Ecological Management
6‐8. Environmental Performance Indicators
6‐9. Future Direction in Pollution Prevention
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6‐1. Compeq's 2015 Green Commitment
Compeq Green Commitment
Compeq Manufacturing Co., Ltd. is a professional manufacturer of multi‐layered printed circuit boards and IC sealing materials. In order to provide the customers with better services, execute the management philosophies of professionalism, precision, efficiency and pragmatism, make continuous efforts in upgrading product quality, prevent environmental pollution, build a safe and comfortable work environment and fulfill the corporation’s social responsibility and commitment, we make the following undertakings:
1. Business activities will be consistent with environmental safety legislations and the requirements of stakeholder groups.
2. Strive to minimize the impacts and hazards of our business activity through continuous improvement, prevention of environmental protection, and mitigation of risks to employee safety and health.
3. Implement green products and realize the non‐use of environmentally sensitive substances during production.
4. Provide reasonable time and resources to promote employees’ participation in the environmental safety management system. Practice consultation and communication to realize the objective of environmental protection and occupational disaster prevention.
5. Promote positive community relations to enhance corporate image and realize the goal of sustainable development.
Compeq Green Commitment
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6.2 Greenhouse Gas Management 6.2.1 Greenhouse Gas Inventory
Compeq began establishing an inventory of company GHG emissions in accordance with the ISO 14064‐1 standard in 2009. Apart from the Suzhou plant due to differences in industry attributes as well as the new Chongqing Plant where no inventory has been conducted yet, all other plants have received their assurance statements. The scope of inventory includes the qualitative and quantitative determination for direct greenhouse gas emission in Scope 1 and energy indirect greenhouse gas emission in Scope 2.
Greenhouse Gas Emission Scopes and Execution Category Scope Execution Method
Scope1 (Direct Greenhouse Gas
Emission)
1. Greenhouse gas emissions from energy sources such as electric power, heat or steam or fossil fuels. 2. Biological, physical, or chemical manufacturing processes that generate greenhouse gas emissions. 3. Transportation of raw materials and products under our control and employee transportation. 4. Source of fugitive greenhouse gas emission.
Qualitative and Quantitative Inventory.
Scope 2 (Energy Indirect Greenhouse
Gas Emission)
Greenhouse gas emissions from purchased electric power, heat, or steam or other fossil fuels.
Qualitative and Quantitative Inventory.
Scope 3 (Other Indirect Greenhouse
Gas Emission No Inventory Performed.
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According to the result of greenhouse gas inventory, Compeq's total GHG emissions in 2015 amounted to was 409,701 tonnes CO2e. The main source was carbon dioxide from the generation of externally purchased electricity at 92.2% (377,612 tonnes). Greenhouse gas produced by boiler oil, vehicle fuel and emergency generators used during the manufacturing process represented just 7.8% (32,089 tonnes). Various energy‐saving measures were implemented by each plant in 2015 and emission intensity (Tonnes CO2/ Millions of NTD) was reduced compared to 2014.
2015 GHG Emission Statistics Independently verified emissions for the Luzhu, Dayuan and Huizhou Plants
Region/Item Taiwan Plants China Plants
Luzhu Plant Dayuan Plant Huizhou Plant Suzhou Plant Chongqing Plant
2014
Scope 1 (Tonnes CO2e/Year) 5,124 353 38,080 286
No Inventory Performed
Scope 2 (Tonnes CO2e/Year) 119,228 36,682 242,136 4,584
Total (Tonnes CO2e/Year) 124,353 37,035 280,216 5,140Grand Total (Tonnes CO2e/Year) 446,743
Output (NTD) 11,436,439,100 3,175,224,443 3,944,124,000 478,840,000
Emission intensity (Tonnes CO2/Millions of NTD)
10.87 11.66 71.05 10.73
2015
Scope 1 (Tonnes CO2e/Year) 5,338 326 33,189 269
No Inventory Performed
Scope 2 (Tonnes CO2e/Year) 120,271 37,982 207,313 5,053
Total (Tonnes CO2e/Year) 125,609 38,308 240,502 5,322
Grand Total (Tonnes CO2e/Year) 409,741
Output (NTD) 11,436,439,100 3,175,224,443 3,944,124,000 723,559,333
Emission intensity (Tonnes CO2/Millions of NTD)
9.96 12.06 63.75 7.35
Note: Explanation of data:
1. The above data are rounded results.
2. Reference for GWP values: IPCC AR2 (1995)
3. Significance threshold set as 3%. Materiality threshold set as 5%.
4. GHG emission types: CO2, CH4, N2O, HFC and SF6
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6.2.1 Carbon Communications There is now a strong international push for energy‐saving and GHG
reduction proposals as GHG emissions produced by human economic activity may be causing global climate change and threatening the natural environment. Investors and enterprises are both beginning to focus on the development and operation of reduction measures in order to mitigate global climate change.
To help mitigate the impact of climate change, greenhouse gas inventory and reduction plans were implemented by Compeq. We have also voluntarily disclosed the results of our corporate initiatives through channels such as customer surveys and participation in the carbon disclosure project (CDP), etc.
Compeq has participated in the Carbon Disclosure Project (CDP) promoted by investors from 385 organizations worldwide since 2009. The main task is to investigate and publish the performance of corporate operation and reduction of greenhouse gas. It requires the corporations to propose their own strategies of investment risks and opportunities in response to climate change. These plans are provided to the investors as reference to show the corporate responsibilities.
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6.2.3 Energy Saving and Carbon Reduction An annual reduction of 1% in energy
intensity was set as the target to promote energy conservation and carbon reduction in the industry. In reality however, Compeq's annual reductions have exceeded the 1% target since 2010. Actual reductions as of 2015 were around 29% (see table below). Compeq has also continued to participate in the "Industry Greenhouse Gas Voluntary Reduction Promotion Project" organized by the MOEA Industrial Development Bureau. Through the voluntary reduction program, the government assists the industry with acquiring experience and expertise in GHG reduction. This will prepare the industry for total emission control and transactions in the future.
GHG Emission Values and Reductions from Previous Years
Year
Actual Value2009
Baseline Year
2010 2011 2012 2013 2014 2015
CO2 emissions (Tonnes CO2) 104,027 115,487 118,480 113,827 115,521 124,353 125,609
Output (Millions of NTD) 6,997 8,289 8,783 8,723 9,587 11,436 12,611
Emission intensity (Tonnes CO2/Millions of NTD)
14.9 13.9 13.5 13.0 12.0 10.9 10.0
Reduction in emission intensity compared to
baseline year (%) ‐ ‐6% ‐9% ‐12% ‐19% ‐27% ‐29%
Cumulative reduction compared to baseline year
(Tonnes CO2) ‐ ‐7,756 ‐12,108 ‐15,865 ‐27,021 ‐45,681 ‐61,895
14.913.9 13.5 13
1210.9
10
‐6%‐9%
‐12%
‐19%
‐27%‐29%
‐30%
‐25%
‐20%
‐15%
‐10%
‐5%
0%
8
9
10
11
12
13
14
15
基準年
2009 2010 2011 2012 2013 2014 2015
Actual Emission Intensity in Past Years
Baseline Year
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6.3 Air Pollution Prevention Compeq takes workplace and air pollution prevent very
seriously. Plants are provided with waste gas cleaning towers and dust collectors to collect waste gases and powder from production processes. This also improves ventilation in the operational environment.
Each emission tower and dust collector receive routine daily inspections as well as weekly, monthly and quarterly inspections. Inspection companies are commissioned to regularly monitor the concentration of pollutants in the air. The results all conform with local regulatory standards.
6.4 Energy and Power Consumption
Management The majority of Compeq's energy consumption comes from
externally purchased electricity used for business operations, followed by heavy oil and diesel. Total electricity consumption in 2015 was 687,080,000 kWh, an increase of 88,880,000 kWh on 2014. The increase was due to the commissioning of the Chongqing Plant and increased productivity at other plants. Compeq is now actively looking for more ways to reduce energy consumption and production costs.
The graph on the right shows Compeq's historical electricity consumption. It shows that while there was an increase in overall electricity consumption by each plant in 2015, electricity consumption per unit of production decreased at all plants except for the Huizhou plant where there was a slight increase.
Compeq's Historical Power Consumption
Category/Region Taiwan Plants China Plants
Luzhu Plant Dayuan Plant Huizhou Plant Suzhou PlantChongqing
Plant
2013
Electricity Consumption(kWh/Year)
212,007,953 67,850,259 270,730,581 5,910,009 Not yet in
production so no statistics available.
Output (Dollar/Year)
9,586,853,465 2,844,538,520 2,443,342,920 436,511,701
Electricity Per Unit of
Production
0.022 (kWh/NTD)
0.024 (kWh/NTD)
0.111 (kWh/NTD)
0.014 (kWh/NTD)
2014
Electricity Consumption(kWh/Year)
228,844,800 70,406,400 263,679,230 6,157,320 26,619,006
Output (NTD/Year)
11,436,439,100 3,175,224,443 3,944,124,000 478,840,000 101,513,513
Electricity Per Unit of
Production
0.020 (kWh/NTD)
0.022 (kWh/NTD)
0.067 (kWh/NTD)
0.013 (kWh/NTD)
0.262 (kWh/NTD)
2015
Electricity Consumption(kWh/Year)
230,846,400 72,902,400 315,737,013 6,409,477 61,194,560
Output (NTD/Year)
12,610,683,260 3,376,469,098 3,771,704,134 723,559,333 535,950,078
Electricity Per Unit of
Production
0.018 (kWh/NTD)
0.022 (kWh/NTD)
0.084 (kWh/NTD)
0.009 (kWh/NTD)
0.114 (kWh/NTD)
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6.4.1 2015 Energy Saving Initiatives and Results
We implemented further energy‐saving measures in 2015 to continue realizing energy savings. These including lighting improvements, improved compressor efficiency, and upgrading of punching machines.
Plant Energy‐Saving Initiative Energy‐Saving Result
Luzhu Lighting improvement Air compressor upgrade and switch to
inverter air‐compressor
Inverters filled to blower motor and water pumps
Electricity audit
Annual electricity savings of 3,417,098 kWh, reducing emissions by 1780.3 tonnes CO2e
Dayuan
Efficiency improvement to air compressor
Installation of inverters on water, ventilation and AC motors
Electricity audit
Annual electricity savings of 1,741,467 kWh, reducing emissions by 1004.5 tonnes CO2e
Huizhou
Conversion of punching machines to central dust collecting system
Switch from bag filter dehydrator to plate and frame dehydrator
Enabling of horizontal energy‐saving function
Modification of chiller cooling tower with Comson energy‐saving device
Switch from oil boiler to oil and gas dual fuel boiler
Replacement of LED lighting and obsolete electrical machinery
Saved 1615.2 tonnes of standard coal, reducing emissions by 12068.66 tonnes CO2e
Suzhou Automatic control of dust collector Automated cleaning of cooling tower Modification of oil cooler
Installation of automated cleaning system for chiller
Replacement of LED lighting Drilling upgrade
Saved 1135 tonnes of standard coal, reducing emissions by 8,240 tonnes CO2e
Chongqing
Installation of automated cleaning system for chiller
Replacement of mercury lights around the plant with LED lights
Addition of inverter to emission tower
Adjustment to the blow‐drying temperature for the polishing line
Removal of pre‐treatment water blower
Saved 314 tonnes of standard coal, reducing emissions by 817 tonnes CO2e
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6.5. Water Resource Management Water resource has become one of the most important issues for mankind in the 21st century. In particular, the water shortage crisis caused by global environmental change in the past years does not allow us to ignore the problem of water resource use. Compeq is located in Xinzhuang Village, Luzhu District, Taoyuan City, well clear of any ecological protection zones. Apart from some nearby farmland and bamboo groves, the the surroundings are all man‐made buildings and roads. Two rivers run through Luzhu Township: Nankang River and Puxing River. Water resources are mainly used for agriculture, woods, fishing and raising livestock. The irrigation system is the Taoyuan Channel, with water sourced from Dahan River. Domestic water consumption is mainly supplied from Shimen Dam. Historical water consumption shown in the tabled below:
Compeq's Historical Water Consumption
Category/Region Taiwan Plants China Plants
Luzhu Plant Dayuan Plant Huizhou Plant Suzhou Plant Chongqing Plant
2013
Water Consumption (Tonnes/Year) 4,170,580 1,209,710 3,630,041 11,284 Not yet in
production so no statistics available.
Output (NTD/Year) 9,586,853,465 2,844,538,520 2,443,342,920 536,511,701Water Consumption per Unit of Production (Tonnes/10,000
NTD) 4.35 4.25 14.86 0.21
2014
Water Consumption (Tonnes/Year) 4,146,453 1,122,152 3,797,516 10,912 266,399
Output (NTD/Year) 11,436,439,100 3,175,224,443 3,944,124,000 478,840,000 101,513,513 Water Consumption per Unit of Production (Tonnes/10,000
NTD) 3.63 3.53 9.63 0.23 26.24
2015
Water Consumption (Tonnes/Year) 2,889,402 835,179 3,766,045 10,197 651,612
Output (NTD/Year) 12,610,683,260 3,376,469,098 3,771,704,134 723,559,333 535,950,077 Water Consumption per Unit of Production (Tonnes/10,000
NTD) 2.29 2.47 9.98 0.23 12.16
4.253.53
2.47
14.86
9.63 9.98
0.000
26.24
12.16
0
5
10
15
20
25
30
2013 2014 2015
蘆竹廠
大園廠
惠州廠
蘇州廠
重慶廠
→The graph on the left shows that there was an overall decrease in water consumption at Compeq plants in 2015. The most obvious decrease was by the Chongqing Plant, reflecting the success of water‐saving measures at the plant. →An increase in output at the Huizhou Plant meant there was slightly decrease in water consump on (9.63→9.98) in 2015. Further modification and improvements will be made.
Luzhu Plant
Dayuan Plant
Huizhou Plant
Suzhou Plant
Chongqing Plant
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6‐5‐1. Wastewater Treatment
Compeq focuses on friendly co‐existence with the surrounding environment in order to achieve sustainable development. The company has a dedicated wastewater processing plant with all production wastewater and living wastewater collected by separate pipelines, properly processed, and inspected against control standards before discharge. Wastewater treatment was initially limited to terminal treatment upon further review, some of the wastewater was determined to be worth recycling. The ion exchange resin method, electrolytic method and freezing crystallization method were subsequently used to recycle valuable metals such as copper and gold as well as reduce the amount of sludge produced. Compeq has also introduced new treatment methods such as biological
treatment, Fenton electrolysis, and electro‐coagulation to improve treatment efficiency and reduce the level of pollution in the discharged water The discharge standards at Compeq plants are listed below: Monitored Item
Taiwan Plants CC Plant CQ Plant
pH 6~9 6~9 6‐9
CU2+ 3mg/L 0.5mg/L 0.5mg/L
COD 120mg/L 80mg/L 400mg/L
BOD 50mg/L ‐ ‐
TSS 50mg/L 50mg/L ‐
Ammonia ‐ 15mg/L 35mg/L
Total Phosphate
‐ 1mg/L
6‐5‐2. Discharge Water Recycling Targets and Results
A target of recycling 65% of all discharged water over three years was set. The plant's internal water consumption systems were also reviewed, including: 1. Reduce process water by 1,200 tonnes/day. 2. Water recovery from emission tower of 460 tonnes/day. 3. Water recovery from chemical additives of 100 tonnes/day. 4. Water recovery from greening and toilets of 20 tonnes/day. In 2014, a review of process water overflow at the Luzhu Plant reduced water consumption by 2,500 tonnes/day for a recycling rate of 11%. In 2015, Luzhu's review of process water overflow and a reduction in tank frequency reduced water consumption by 30%. Around 1,074 tonnes/day of discharge water was recycled for use in the emission tower, breaking of foam in the biological water treatment system, and electrolytic cooling for a recovery rate of 13.6%. The feasibility of discharge water reuse after treatment will be studied to increase the recycling ratio even further.
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6.6 Waste Management All waste produced by Compeq are sorted and then handed over to licensed
contractors for recycling and disposal. In principle, recycling is the preferred method of waste management. For example: Heavy metal sludge produced by the wastewater treatment plant is by law considered to be industrial waste and must be disposed through qualified waste disposal companies. The introduction of the recycling system greatly reduced the amount of sludge generated. Scrapped PCBs are also considered waste and must be processed by a contractor. We are working on an effective recycling technology to strip valuable metals from scrapped PCBs. This will not only allow these resources to be recovered but also reduce the production of waste.
Waste recycling and hazard‐free disposal is very important to Compeq and are carried out strictly accordance with the law. The above table shows the types, amount and disposal method for waste. Compeq recycled 92% of all waste by weight in 2015, demonstrating our company's commitment to recycling.
Project Luzhu Plant
Dayuan Plant
Huizhou Plant
Suzhou Plant
Chongqing Plant
Total Waste 19,513 5,290 87,434 22 5,895
General Waste (Tonne) 3,749 687 54,059 20 959
Hazardous Waste (Tonne) 15,765 4,603 33,375 2 4,860
Recycled Waste (Tonne) 13,686 2,517 ‐ ‐ 5,423
Percentage of Total (%) 70.14% 47.58% 0.00% 0.00% 92.01%
Incinerated Waste (Tonne)
1,609 387 17,872 0 471
Percentage of Total (%) 8.25% 7.32% 20.44% 0.00% 7.99%
Landfill (Tonne) 372 17 0 0 0
Percentage of Total (%) 1.91% 0.32% 0.00% 0.00% 0.00%
Other (Tonne) 3,846 2,369 69,562 22 0
Percentage of Total (%) 19.71% 44.78% 79.56% 100.00% 0.00%
6‐6‐1.Recovery and Reuse at Taiwan Plant
Reuse/ Recovery Item
2013 2014 2015
Luzhu PlantDayuan Plant
Luzhu PlantDayuan Plant
Luzhu Plant
Dayuan Plant
Gold salt consumption
294,606.71 88,154 359,169.1 99,782 400,217 86,526
Gold salt recovery
(Spent Solution)54,735.6 13,280 56,344.6 17,577 62,337.4 15,275
Gold salt recovery
(Gold Stripping Solution)
21,820.6 5,214 30,968 2,458 26,984.1 2,551
Total amount recovered
76,556.2 18494 87,312.6 20,035 89,321.5 17,826
Recovery rate 26% 21% 24% 20% 22% 21%
The Taiwan plants (including Luzhu and Dayuan) targeted the gold sat used
during production for recycling to promote the philosophy of environmental protection. As shown in the above table, while the annual consumption of gold salt at both plants have increased in 2013, the recycling of gold salt (spent solution) and gold stripping solution has been around 20% as well. The decrease in recovery rate at Luzhu plant was due to an adjustment in the amount of gold salt returned by the contractor (about 5% on average).
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6.7 Environmental Performance Indicators
Shown right are are the environmental performance indicators at each Compeq plant in 2015. The table reveals that the Taiwan plants were fined for soil pollution and effluent in. Project teams have been set up to take corrective action.
The Luzhu plant
subsequently made improvements to its equipment and renewed its permit so has no impact on the community and environment.
2015 Environmental Performance Information
Taiwan Plants China Plants
Luzhu Plant Dayuan Plant Huizhou Plant Suzhou Plant Chongqing Plant
2014 2015 2014 2015 2014 2015 2014 2015 2014 2015
Total GHG Emissions (Tonnes CO2e/year)
124,353 125,609 37,035 38,308 280,216 240,463 5,140 5,322 No inventory conducted yet
No inventory conducted yet
Electricity Consumption (kWh /year) 228,844,800 230,846,400 70,406,400 72,902,400 263,679,230 315,737,013 6,157,320 6,409,477 26,619,006 61,194,560
Diesel Consumption (GJ/Year) 20,183 19,709 1,833 1,540 60,707 1,468 221 385 620 9,638
Heavy Oil Consumption (GJ/Year) 16,074 13,141 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
Petrol Consumption (GJ/Year) 2,457 2,477 127 163 2,616 75,483 2,849 2,826 230 624
Natural Gas Consumption (GJ/Year) ‐ ‐ ‐ ‐ ‐ ‐ 535 ‐ 515 2,972
Total Waste Production (Ton/Year) 21,127 19,513 6,100 5,290 34,161 33,374 47 22 1,342 5,895
Total Waste Recycled (Ton/Year) 15,471 13,686 3,252 2,517 28,966 31,502 22 ‐ 1,283 5,423
Waste Recycling Ratio (%) 73.2% 70.1% 53.3% 47.6% 84.8% 94.4% 46.5% 0.0% 95.6% 92.0%
Water Consumption (Tonne/Year) 4,146,453 2,889,402 1,122,152 835,179 3,797,516 3,766,045 10,912 10,197 266,399 651,612
Discharge Water (Tonne/Year) 3,267,571 2,385,108 1,006,659 709,253 2,819,626 2,903,140 10,912 10,185 227,317 607,413
Recycled Water (Tonne/Year) 286,160 391,864 101,677 71,848 704,906 1,034,407 ‐ ‐ ‐ ‐
Water Recycling Ratio (%) 8.8% 13.6% 10.1% 10.1% 25.0% 35.6% ‐ ‐ ‐ ‐
Nitrogen Oxides (NOX) Emissions (kg/Year)
3,851 3,368 180 90 1,376 2030 ‐ ‐ ‐
Sulfur Oxides (SOX) Emission (kg/Year) 3,811 3,116 1 ‐ 2,096 3,068 ‐ ‐ ‐
Volatile Organic Compound (VOC) emissions (kg/Year)
42,795 75,360 6,215 8,437 ‐ ‐ ‐ ‐ ‐ 99
Violation of Environmental Legislation and Total Penalty
920,000 NTD 250,000 NTD 0 0 0 0 0 0 0 0
Total number and volume of significant spills
0 0 0 0 0 0 0 0 0 0
Environmental Expenditure/Investment183,070,000
NTD 156,860,000 NTD 27,030,000 NTD 15,000,000 NTD 17,580,000 NTD 96,900,000 NTD 150,000 NTD
1,000,000 NTD
‐ 26,500,000
NTD
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6‐7‐1. 2015 Environmental Expenditures
Environmental pollution prevention, disposal of hazardous industrial waste and environmental certification all important to Compeq and are budgeted for every year. Spending in 2015 was 67 million NTD higher than 2014 mainly due to an increase in the environmental protection budget with the Chongqing Plant commencing mass production during the same year. Compeq's related expenditures for 2015 are therefore are shown in the following table:
Expenditure Explanation All Compeq
Costs
Pollution prevention cost 1. Pollution equipment invest costs 2. Pollution prevention equipment
maintenance and operating costs
296,260,000 NTDIndustrial waste disposal
costs
1. Physical, chemical, biological, heat treatment or other treatment methods are used to change the physical, chemical and biological attributes or content in order to realize their separation, reduction in volume, detoxification, solidification or stabilization.
2. Sanitary landfill, sealed landfill, safety landfill or ocean disposal of industrial waste
Environment/Environmental protection management and system setup/certification
costs
ISO14001, ISO14064, IECQ QC 080000… etc.
6‐7‐2. 2015 Environmental Compliance
The Taiwan plant was fined for soil and ground water pollution by the Environmental Protection Bureau in 2015. The Compeq environmental protection team immediately set up a task force and came to an agreement with the local community after extensive discussion on continuous improvements in the future.
Funding is also budgeted for environmental production each year. Compeq has developed a different improvement plan for each plant. The Luzhu Plant for example had 8 improvement plans on record for 2015. These included improving the efficiency of the biological treatment system, installation of discharge water filtering equipment, refurbishing the coating of the underground wastewater tank, remedial action on soil pollution, and injection of bio‐agents into the ground water.
Other plants each have their own particular programs. The program details are shown in the following section 6.8 Future Direction in Pollution Prevention.
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6.8 Future Direction in Pollution Prevention Plant Improvement Plan
Luzhu Plant
1. Addition of dry‐film slag reduction and slug drying equipment to reduce the amount of waste produced 2. Replacement of filtration material and aeration pipes to improve the efficiency of bio‐treatment 3. Addition of automated continuous monitoring equipment for discharge water 4. Increase the recovery ratio of copper waste liquid within the plant 5. Increase the reuse of wastewater to reduce the amount of wastewater discharge 6. Refurbish the coating of underground wastewater tank 7. Remedial action on soil pollution (excavation and removal, blending and dilution, biological
rehabilitation etc.) 8. Injection of bio‐agent into ground water
Dayuan Plant
1. Improve the efficiency of the aerobic tank in the bio‐treatment system 2. Addition of discharge water filtration equipment 3. Addition of automated continuous monitoring system for pH, water temperature and
conductivity 4. Increase the recovery ratio of copper waste liquid within the plant 5. Sludge reduction
Huizhou Plant
1. Sludge and dry film slag drying to reduce the amount of hazardous waste produced 2. Reuse of process cleaning water (terminal washing changed to front‐end), water conservation of gantry production line during standby, and reduction in
excess overflow (comparison against similar production lines with water savings based on difference between high and low overflow) to reduce water consumption
3. Improvement to biological treatment system to improve nitrogen and ammonia‐nitrogen removal rate 4. Recovery of raw water from RO system to increase wastewater recycling
Suzhou Plant
Addition of weirs to the compressor area to prevent oily water from contaminating the soil and rainwater conduits
Chongqing Plant
1. Modification to interlink between emission tower and pumps to prevent the direct exhaust of emissions 2. Addition of filtering device to the on‐line monitoring instrument sampling port to reduce failure rate 3. Replacement of anti‐foaming agent with foam breaker to reduce COD emissions
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7. Employee Relations 7‐1. Occupational Health and Safety 7‐2. Compeq and Employees 7‐3. Employee Development and Training
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7‐1. Occupational Health and Safety 7‐1‐1. 2015 Occupational Health and Safety Targets
7‐1‐2. Occupational Safety and Health Management System
To upgrade our overall safety and health system and management performance, Compeq began promoting the OHSAS 18001 Management System at all plants in 2005. OHSAS18001 certification was achieved in March 2006 after auditing by Lloyd's. When the OHSAS 18001 management system was updated Compeq's certification was updated to the new version as well. Chongqing Plant is a new site so OHSAS 18001 certification is expected to be achieved in 2016.
For the effective operation of the management system, Compeq has
established a Labor Safety and Health Management Committee as required by law. Labor representatives make up 1/3 of the committee as mandated and the highest level of authority is the plant manager, ensuring that labor union representatives can communicate directly with the top management.
The Health and Safety Management Committee is convened quarterly.
Representatives can take part in the discussions of safety and health matters. Participation by labor representatives in the Committee during 2015 was 100%. The union also included guarantees on health and safety in the draft collective bargaining agreement.
In accordance with the operation of the management system, Compeq tracks
the monthly statistics for disabling injuries and lost days for each regional business entity. The information is reported to the Northern Labor Inspection Bureau each month. Compeq is continuing to track our occupational injury data. Other aspects of the management system include:
Compliance with laws and the requirements of stakeholder groups 1. Human‐factor
engineering assessment and improvement plan
2. Chemical classification and management
Continuous Improvement of the Management System and Improved Hardware Planning 1. Optimization industrial safety
management system ‐ Electronic forms2. Increase the effectiveness of operational
environment monitoring 3. Improve the effectiveness of hazard
identification and fire risk assessment tools
Enhance Safety Awareness of Personnel 1. Promote fire damage prevention plan 2. Strengthen the safety and health
discipline plan for on‐site personnel 3. Promote emergency response plan
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A. Work environment inspection B. Personal protection of workers C. Hazard identification, evaluation and control D. Chemical Management
To make continuous improvements to employees' working conditions, we not only impose controls on the temperature/humidity, lighting, noise, and substances during the design stage but also carry out on‐site tests based on safe workplace regulations. The indicators are compared and reviewed every year to ensure that our working conditions satisfy statutory requirements.
To reinforce personal protection at work, Compeq issues various types of protective gear for the use of employees based on their position and actual work requirements. There are high‐visibility warning signs in each area to remind employees to use the protection gear. We also have a dedicated management unit for training and guiding employees on the use of protective gear, effectively increasing employees awareness on personal protection.
To prevent occupational disasters as well as reduce safety and health risks, Compeq drew up the "Safety and Health Risk Identification and Assessment Guidelines.” Every unit is required to identify and assess risk factors, grade them by severity, then propose control measures in order progressively standardize the safety management or operations of equipment, materials, and work procedures.
To improve the safety of personnel working with chemicals, Compeq tracks the safety information for all chemicals used. Safety management is also carried out for all of the chemicals used by the company including their current usage and storage environment. Operators are provided with safety and health training to enhance their safety awareness during the use of chemicals. Due to new government measures on chemical management, the chemicals used in the plants have now been classified according to their operating environment, amount used, storage and number of users for management. This then serves as the basis for improvements to the working environment or related equipment.
E. Work Safety Reward F. Ergonomic Risk Assessment and Control G. Health Examination H. Prevention of Illegal Interference at Work To encourage more engagement and accountability on safety and health improvement and maintenance on the shop floor, a work safety evaluation system was launched by Compeq in 2005. Each unit is evaluated on their industrial safety performance each month. The self‐assessment offers incentives for every unit to engage in continuous improvement. A progress award was also set up with public recognition and rewards at weekly meetings. Work safety is therefore made not only a part of everyday operations but also an honor to be achieved.
New domestic legislation as well as the prevention of musculo‐skeletal‐related occupational injuries in employees led to Compeq introducing ergonomic risk assessment regulations based on the government's 2014 ergonomic risk prevention guide. Plant operations were reviewed and improvements made to provide employees with a safer, more comfortable working environment.
1. To effectively monitory employee health, Compeq not only requires a physical examination upon joining the company but also provides employees with regular health examinations as required by law. Employees are notified of the results.
2. At the same time, Compeq carries out general and special health examinations in accordance with law. We also host health promoting events and provide weekly excerpts of health information to all employees.
3. The standard and special health examinations for 2015 have all been completed. The plant clinic now features an occupational medicine clinic conducted by specialists for certifying occupational injuries/diseases and change of work assignments.
Occupational safety includes both the physical body and mental well‐being. Compeq has published explicit rules on appropriate preventive and response measures for employees subjected to illegal interference by their employer, supervisor, colleague, service recipient or other third parties in the workplace resulting in physical or mental harm. Compeq hopes to build a friendly workplace and environment. All forms of workplace violence are strictly prohibited.
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7‐1‐3. In‐Service Training on Safety and Health For current employees, an annual education & training program is organized
each year based on safety & health legislation and plant requirements. Enforcement of the education & training plan ensures that all employees are aware of proper safety & health concepts. In 2015, the Taiwan plant conducted 14,998 hours of safety & health training. This was 3,543 hours less than last year due to a decrease in training demand. Huizhou plant in turn conducted 30,870 hours of training, up 30 hours on last year. Suzhou Plant also experienced a decrease in in training hours due to lower demand. The Chongqing Plant however strictly enforced Compeq's safety and health requirements from the start of production.
*Unit : Hours/Person *The annual safety and training hours per person includes total external & internal training hours/total employees
7‐1‐4. Fire Drills To enhance employee awareness on emergency evacuation and firefighting,
Compeq organizes firefighting team training and emergency evacuation drills every year. These real‐world operations and exercises serve to educate employees on fire and use of firefighting equipment. In the event of an emergency, employees will be able to evacuate in a safe and swift manner, reducing the loss of property and life from fires on company premises.
Compeq also adheres strictly to fire safety regulations in the design and installation of firefighting equipment. The "Fire Safety Accountability System" ensures that responsibility for fire safety is implemented at the workshop and team level for routine firefighting equipment maintenance and management. Qualified fire safety companies are contracted to maintain the company's firefighting systems. Independent fire safety inspection organizations are also commissioned every year to test the firefighting system. Fire safety training and emergency response drills are held as well to enhance the fire safety awareness and emergency response skills of employees.
Country/Region Taiwan Plants China Plants
Luzhu Plant
Dayuan Plant
Huizhou Plant
Suzhou Plant
Chongqing Plant
Annual Hours of Safety & Health Training per
Person 3.47 5.43 3.52 0.57 4.77
Annual Hours of Safety & Health Training
14,998 5,776 30,870 541 6,846 Fire drills at the Compeq Dayuan Plant and Suzhou Plant
Training class at the Compeq Luzhu Plant
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7‐1‐5. 2015 Occupational Disaster Statistics at Each Plant
→ The Luzhu, Dayuan, Huizhou and Suzhou plants all saw a decrease in FR and SR in 2015 compared to 2014. → The Chongqing Plant only commenced production in July, 2014, so the numbers were relatively low. Orders and production increased in 2015 so the overall numbers began rising.
Plant Male Female
Luzhu Plant Total work hours
Frequency Days Lost FR SR Total work hours
Frequency Days Lost FR SR
5,512,416 14 201 3 36.46 4,178,904 8 233 2 55.76
Dayuan Plant
Male Female
Total work hours
Frequency Days Lost FR SR Total work hours
Frequency Days Lost FR SR
1,213,280 0 0 0 0 874,872 2 11 2.28 12.57
Huizhou Plant
Male Female
Total work hours
Frequency Days Lost FR SR Total work hours
Frequency Days Lost FR SR
19,419,044 15 494 0.77 25.42 9,709,522 6 149 0.62 15.30
Suzhou Plant
Male Female
Total work hours
Frequency Days Lost FR SR Total work hours
Frequency Days Lost FR SR
965,437 1 0 1.03 0 1,448,156 2 10 1.38 6.9
Chongqing Plant
Male Female
Total work hours
Frequency Days Lost FR SR Total work hours
Frequency Days Lost FR SR
2,057,728 12 297 5.83 144.33 1,582,868 6 76 3.79 48.01
Basis of Calculation: There were no deaths due to occupational disease or disaster at Compeq in 2015 so these were not included in the above table. (1) Frequency of Disabling Injury (FR): Number of injuries per million work hours excluding traffic accidents traveling to and from work. Formula: Number of injuries / total work hours x
1,000,000. (2) Severity of Disabling Injury (SR): Number of days lost due to injury for every one million hours excluding traffic accidents traveling to and from work. Formula: Total number of work
days lost / total work hours x 1,000,000. (3) Rate of Occupational Disease: People who are judged by special health examinations (occupational disease examination) to be directly work‐related/Average number of total workers
for the year (4) No. of Deaths from Occupational Disaster: Number of people that died due to work‐related factors in the workplace.
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7‐1‐6. 2015 Health Related Activities at Each Plant
Month Taiwan Plants China Plants
Luzhu Plant Dayuan Plant Huizhou Plant Chongqing Plant Suzhou Plant
January Bone density exam Blood donation 1. Four health information communications 2. Inspection of food safety and health
Promotion of health information None
February ‐ 1. Consultation for health examination report 2. Health education on high blood pressure Four health information communications Promotion of health
information Special occupational health examination
March 1. Vision and color recognition testing 2. Health education on overworking Health education on overwork in the workplace
1. Four health information communications 2. Blood pressure and weight measurement
Promotion of health information
Special occupational health examination
April 1. Oral and intestinal cancer screening 2. Health education on high blood pressure
1. Bone density exam 2. Health education on preventing high blood pressure Five health information communications Promotion of health
information Special occupational health examination
May Health education on diabetes 1. Blood donation 2. HIV education forum 3. Health education on preventing diabetes
1. Four health information communications 2. Training of new first‐aid personnel
Promotion of health information
Special occupational health examination
June 1. Blood donation 2. Health education on high cholesterol
1. Stress relief seminar 2. Health education on preventing high cholesterol
1. Four health information communications 2. Proposal for unpaid blood donation by employees
Promotion of health information
Blood pressure measurement
July
1. Cervical cancer screening 2. Health education on metabolic syndrome 3. Compeq Family Day event (1‐day family land and water tour of Leoofoo Village)
1. Massage seminar2. Health education on heat stroke prevention and heat exhaustion during the summer 3. Compeq Family Day event (1‐day family land and water tour of Leoofoo Village)
1. Five health information communications 2. Refresher training of first‐aid personnel
Promotion of health information None
August
1. Health education on heat exhaustion and heat stroke 2. Health education on kidney functions 3. Compeq Family Day event (1‐day family land and water relaxation tour of Leoofoo Village)
1. CPR training2. Health education on introduction to metabolic syndrome 3. Compeq Family Day event (1‐day family land and water relaxation tour of Leoofoo Village)
Four health information communications Promotion of health information None
September 1. Blood donation 2. Health education on preventing Dengue Fever
1. Sight and eye pressure testing 2. Promotion of kidney protection
1. Four health information communications 2. Training of new first‐aid personnel
Promotion of health information
Special occupational health examination
October 1. Blood donation 2. Health education on preventing Dengue Fever
1. Screening for four cancers 2. Health education on preventing Dengue Fever
1. Four health information communications 2. Refresher training of first‐aid personnel
Promotion of health information
Special occupational health examination
November 1. Mammography 2. Health education on preventing Dengue Fever
1. Blood donation 2. Health education on preventing Dengue Fever Five health information communications Promotion of health
information Special occupational health examination
December Annual health exam Annual health exam Four health information communications Occupational health hazard exam for
designated positions
Special/Standard health examination
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7‐1‐7. Enhancing Employee Wellbeing Most people eat
out and tend to eat a more greasy diet. To encourage employees to eat in a more healthy manner, a health section was added to the employee education and training website featuring all kinds of health lessons and FAQ videos on themes such as "Are you exercising to lose weight properly?", and "Good fats". Interested employees or those suffering from illness can browse and make use of the website.
Apart from physical health, Compeq also pays attention to the psychological health of employees as well. Specialists at the medical clinic host monthly seminars on topics related to relaxation and stress relief such as "Health Talk: I've been very short‐tempered and impatient recently. Is this related to greater stress at work?" These help employees relax outside of work and improve their psychological well‐being.
Apart from related seminars, we also invited celebrity lecturers to teach a class on "Overcoming Inferiority and Growth" in 2015. The class taught employees how to cast aside their negative emotions and convert their sense of inferiority into positive thinking. The teacher assessment surveys after the class were all positive and hoped that the company will continue to organize similar classes in the future. We will therefore continue to evaluate the hosting of related classes.
Programs Topic
Episode 1 Following a balanced diet
Episode 3 Are you exercising to lose weight properly?
Episode 5 Mom's Diet‐‐ Diet during pregnancy (Part 1)
Episode 7 Baby food (Part 1)
Episode 9 Detoxification (Part 1)
Episode 11 Shopping for groceries
Episode 13 Graduation ceremony
Episode 15 Bad kidneys can ruin your life
Episode 17 Things to know about diabetes
Psychological Master Class ‐ Overcoming Inferiority and Growth (1/2)
Psychological Master Class ‐ Overcoming Inferiority and Growth (2/2)
G10 Chiang Pei‐chia
Review GA Song Meng‐ping (Manager) Approval VP of Administration Chung Jui‐hua
Subject Health Talk: I've been feeling very short‐tempered and impatient recently. Is this relaLearning about stress relief and emotional management will help us maintain our physical and mental well‐being, improve our personal relationships, and enhance our performance at work or at school. But how can we tell if we are under too much stress? The following physical, emotional , psychological, and behavioral indicators can help us determine if we are under too much stress. Let's check them out one by one. ★Physical indicators 1. Increase in the frequency and intensity of headaches. If not caused by physical factors then it might a reaction to stress. 2. Tense muscles. This usually occurs around the head, neck, shoulders and back. 3. Skin is too dry with spots or rashes. 4.Digestive problems such as stomach ulcers. 5. Racing heart beat and chest pains.
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7‐2. Compeq and Employees Compeq considers employees to be an important company asset. Apart from
strict adherence to labor laws, we also strive to comply with even more rigorous standards on labor, health and safety, environment, ethics, and management systems such as SA 8000, EICC and customers' code of conduct. In 2012, we even voluntarily applied for and successfully received SA 8000 certification. We also applied to join the EICC‐ON platform and conduct a self‐assessment of our CSR performance every year, the results of which are disclosed to the relevant customers.
7‐2‐1. 2015 Employee Relations Targets
7‐2‐2. 2015 Work Force Overview The number of Compeq employees has continued to grow along with our global
strategic expansion. Direct employees account for 80% of our workforce. At the end of 2015, there were around 18,293 Compeq employees worldwide, an increase of around 3,000 people over the previous year. The majority (63%) of our employees are at the Huizhou Plant in China, followed by the Luzhu Plant in Taiwan with around 23%. The number of employees at each plant and their relative proportions are shown below.
Target 1. Compliance with laws and the requirements of stakeholder groups
Target 2. Continue to reduce the rate of abnormal work hours with not exceeding 5% being the baseline
Target 3. Continue to promote and maintain open employee grievances channels
Target 4. Continue to build a friendly and harmonious workplace
Number of Employees at Each Plant
Chongqing Plant
Suzhou Plant
Huizhou Plant
Dayuan Plant
Luzhu Plant
Chongqing Plant, 6.35%
Suzhou Plant, 1.70%
Huizhou Plant, 62.67%
Dayuan Plant, 5.77%
Luzhu Plant, 23.52%
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7‐2‐3. Diversity and Equal Opportunity Employment Compeq conforms to the principle of gender equality and in our hiring practices.
Suitable personnel are recruited through a fair and equitable process in accordance with local regulations.
Compeq also supports employee diversity. The number of handicapped employees at the Taiwan plants satisfies the government's incentive regulations. Indigenous people are also hired and offered one day of indigenous leave each year so they can enjoy and preserve their indigenous culture. Ethnic minorities are employed
at the Compeq plants in China as well including the Tu, Zhuang, Miao, and Yi peoples. 7‐2‐4. Employee Composition
Management roles consisted mainly of supervisors above the section grade. The table on the right shows that managers account for around between 5‐10% of all Compeq employees. The number of women in management roles was also relatively low compared to men. Analysis concluded that the work environment in the PCB industry is dominated by wet processes. Men are more tolerant of such working conditions. Nevertheless, the selection process for managers at Compeq is fair, impartial and transparent with a comprehensive promotion mechanism in place. The composition of employee roles are shown in the table on the right.
☆Composition of management/non‐Management employees at each plant
Plant Taiwan Plants China Plants
Luzhu Plant Dayuan Plant Huizhou Plant Suzhou Plant Chongqing Plant
Gender Male Female Male Female Male Female Male Female Male Female
No. of People in Management Roles
108 11 34 4 978 239 28 17 31 4
Percentage (%) 2.51% 0.26% 3.22% 0.38% 8.53% 2.08% 9.00% 5.47% 2.67% 0.34%
No. of People in Non‐manag
ement Roles
2,320 1,863 596 421 6,707 3,540 119 147 595 509
Percentage (%) 53.93% 43.31% 56.49% 39.91% 58.50% 30.88% 38.26% 47.27% 51.25% 43.84%
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→ Foreign workers account for around 28% of all workers in the Taiwan plants. Most of the workers in the Chinese plants continue to be hired locally. → Most of the workers (65%) in the Taiwan plants are aged between 30 ~ 50 years. The majority of workers at the China plants aged around 30 so job seekers in China tend to be younger.
☆Ratio of local and foreign employees at each plant
Plant Taiwan Plants China Plants
Luzhu Plant Dayuan Plant Huizhou Plant Suzhou Plant Chongqing Plant
Gender Male Female Male Female Male Female Male Female Male Female
Local Workers 1,889 1,462 524 316 7,685 3,779 147 164 626 513
Ratio of Local Workers
43.91% 33.98% 49.67% 29.95% 67.04% 32.96% 47.27% 52.73% 53.92% 44.19%
Foreign Workers 539 412 106 109 No foreign worker hired Ratio of Foreign
Workers 12.53% 9.58% 10.05% 10.33%
☆Employee age distribution at each plant
Plant Taiwan Plants China Plants
Luzhu Plant Dayuan Plant Huizhou Plant Suzhou Plant Chongqing Plant
Gender Male Female Male Female Male Female Male Female Male Female
<30 years 593 396 178 79 4095 1940 74 82 440 303
<30 years (%) 14.23% 9.50% 17.05% 7.57% 46.83% 22.18% 26.33% 29.18% 47.67% 32.83%
30~50 years 1548 1198 403 289 1411 999 59 65 99 81
30~50 years (%)
37.14% 28.74% 38.60% 27.68% 16.13% 11.42% 21.00% 23.13% 10.73% 8.78%
>50 years 255 178 47 48 153 147 1 0 0 0
>50 years (%) 6.12% 4.27% 4.50% 4.60% 1.75% 1.68% 0.36% 0.00% 0.00% 0.00%
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☆ Distribution of new and separating employees' ages at each plant in 2015
Country/Region Taiwan Plants China Plants
Luzhu Plant Dayuan Plant Huizhou Plant Suzhou Plant Chongqing PlantCategory/Gender Male Female Male Female Male Female Male Female Male Female
No. of N
ew
Employees
Age distribution
<30 years 111 141 22 10 3744 1304 37 24 837 494
30~50 years 206 148 64 44 1834 830 9 2 1131 730
>50 years 0 0 0 0 1 0 0 0 0 0
Arrival (%)
Age distribution
<30 years 0.25% 0.32% 0.20% 0.09% 3.16% 1.10% 0.99% 0.64% 6.75% 3.98%
30~50 years 0.23% 0.17% 0.29% 0.20% 0.77% 0.35% 0.00% 0.00% 7.93% 4.93%
>50 years 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Num
ber of Departing
Employees
Age distribution
<30 years 162 109 34 17 4820 2829 47 28 952 443
30~50 years 354 250 104 30 5672 1898 15 4 164 154
>50 years 17 6 0 2 29 1 0 0 0 0
Turnover(%)
Age distribution
<30 years 0.36% 0.25% 0.30% 0.15% 4.07% 2.39% 1.26% 0.75% 7.67% 3.57%
30~50 years 0.40% 0.29% 0.46% 0.13% 2.39% 0.80% 0.00% 0.00% 0.66% 0.62%
>50 years 0.04% 0.01% 0.00% 0.02% 0.02% 0.00% 0.00% 0.00% 0.00% 0.00%
*Note: Turnover rate was calculated using (no. of separating employees/12 months)/total no. of employees at the end of 2015. Separations may be due to voluntary, dismissal, retirement, or death in line of duty. *Note: "New employees" refer to those that were accepted and reported for work between January 1 and December 31, 2015.
→ The above table shows that the number of new employees and separation rates at the Luzhu and Dayuan plants in Taiwan are relatively low. This means greater personnel stability in Taiwan; → In China most of the turnover is from employees in the <30 years category. New employees therefore come from the same group as well.
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HarmonyFriendship
IntegrateResource
PreventConflict
EmployeeAssistance
7‐2‐5. Employee Engagement Unobstructed Communication Channels: Compeq values communication with employees and hopes to use a variety of different channels to understand what employees are thinking. As this can help the company refine its systems and practices, Compeq has established a variety of internal grievance and complaints channels. A memo is sent out to all employees every month to encourage the use of these channels as well. The channels include "direct communication with the supervisor", "direct communication with HR unit/supervisor", "physical employee suggestion box", "e‐mail", "complaints hotline", and "town hall meetings." The Taiwan plants have even translated the communication channels into the mother tongue of foreign workers and put up posters throughout the plants and in the shoe‐changing areas. These efforts seek to realize unobstructed communication with employees. JR Employee Relations Course: The social responsibility complaints section is divided into labor, industrial safety and environmental safety aspects. In 2015, there were still a relatively high number of human rights‐related complaints from employees are unable to accept the high‐pressure leadership style of their supervisors. To fix this problem, the JR‐Employee Relations Course is planned for 2016. The course will be targeted at managers at and above the grade of foreman. Managers will be taught how to apply empathy to solving employee problems, boost team rapport and thus achieve harmonious employee relations. Union Relations Management: Compeq’s Taiwan plants formed the company union in 1979. The Huizhou and Suzhou Plants established their labor unions in 2011 and 2010 respectively. Compeq respects employees’ rights under the law so it does obstruct or interfere with employee’s freedom of association. In 2015, 100% of the employees joined the labor union and are protected by the right of collective negotiation. The Compeq Union meets every two months or convenes special meetings of team leaders. One general meeting of union members is held every year. One meeting of directors and supervisors is held every month or when necessary. Team leaders meet on ad hoc basis to promote the policies of the company and the labor union to the members and to collect members feedback. Employee concerns are examined and discussed by labor representatives and management representatives so effective responses can be proposed. The meeting minutes are also published internally to inform employees about the action to be taken on each issue. . Labor relations meetings are convened by Compeq on a regular basis for management and labor representatives to examine and discuss issues of interest to
employees and propose practical measures. Weekly and monthly meetings are regularly held to inform employees about the company's business direction and accomplishments. Important announcements are sent as memos by e‐mail to all employees or announced during shift changes for on‐site workers. 7‐2‐6. Building a Friendly and Harmonious Workplace Compeq was established more than 40 years ago. During all these years, Compeq has followed the the law and established SOPs for maintaining corporate discipline as well as the normal, stable operation of the company. Laws, SOPs and discipline however can feel cold and sterile to employees during their work. To realize sustainable development of the company, Compeq is now looking beyond laws, SOPs and rules. Apart from encouraging greater empathy among managers in their dealings with employees, we are also looking at measures to "re‐motivate" employees so everyone from the young and old can feel the changes and our commitment.
A relevant committee was established by Compeq in April, 2015. The committee now meets on a quarterly basis for the promotion of related topics. The new benefits added for Taiwan in 2015 are listed below:
Human resources
•Promotion of work rules and incentives•Salary increase of 4% in Taiwan for 2015•Addition of training course on awareness of labor rights regulations to improve management sensitivity on labor rights regulations
General affairs/Benefits
•Increase in number of discounted bank transfers•Hosting of club recruiting events•Pregnancy and child‐rearing measures•Higher child‐rearing and hospital subsidies•Provision of electric scooter parking spaces
Health
•Greening of plant surroundings
•Provision of free spiritual resources
•Addition of breast‐feeding room
•Hosting of spiritual seminars
•Signing of special contract with fitness centers
•Disease prevention seminar
•Monthly sharing on health topics
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7‐2‐7. Compensation
7‐2‐8. Basic Benefits
Equal pay for equal work: Compeq established a salary system with external competitiveness and internal fairness. The starting salary is determined by educational level and work experience. It is not affected by race, ethnicity or social background, social level, descent, religion, physical handicap, gender, sexual orientation, family responsibility, marital status, labor union membership, political opinion, age or other reasons. Company salary is consistent with local labor regulations and all new employees receive the same pay for the same work regardless of gender. Comprehensive promotion system: A comprehensive and reasonable promotion and assignment system can help motivate employees and lower employee turnover. A compensation scheme that is competitive in the job mark will with talent retention. Outstanding employees are rewarded according to the company's business results and individual performance in order to boost morale and productivity. Insurance and Pension: Compeq complies with relevant local legislation and purchases labor insurance, national health insurance and group insurance for workers. Leave is also managed through the attendance system including annual leave, personal leave, sick leave, menstruation leave, maternity leave and paternity leave. In addition, a comprehensive retirement plan has been drawn up in accordance with the law. This includes the calculation of employee pensions in accordance with the "Labor Standards Act" in Taiwan. The payment period and payment rate are determined in accordance with actuary forecast of employee retirement fund. Starting on 1 July, 2005, a certain percentage of the salary (6%) is deposited into the employee's personal account on a monthly basis in accordance with the “Labor Retirement Regulations." In China, a certain percentage of the salary is deposited into the employee's personal account in accordance with the "Basic Endowment Insurance Regulations." Employees are invaluable assets of the company. A business can only continue to grow if it has the right quality and quantity of talented people. We therefore strive to provide the company with comprehensive, high‐quality benefits that allow each employees to put their talents to good use in their roles and boost the competitiveness of the company. For this, in addition to guaranteeing the benefits prescribed by law, we also established various benefit systems under the consideration for employee welfare.
Travel: Compeq provides basic and sound food, clothing, accommodation, transportation, education and entertainment. lodging and travel measures. The Taiwan plant provides shuttles buses between Taoyuan and Taipei, while the Huizhou plant provides Huizhou and Boluo shuttles for those who purchased local housing as well as recreational vehicles for employees wanting to go shopping. Suzhou Plant provides drop‐offs and pick‐ups by plant vehicles while the Chongqing Plant provides shuttle buses. Food: All plants provided free food and air‐conditioned dormitories featuring sports and recreation rooms. Facilities include pool table, table tennis and exercise equipment. The Huizhou Plant offers soccer, table tennis and basketball equipment as well. Employees can therefore play sports and unwind at any time to keep fit. Accommodation: The Taiwan plants employ foreign workers so there is a lounge on each floor with TV and satellite receivers that ease their homesickness through TV programs from their home country. The dormitories of Huizhou plant include a recreation room and lounge where employees can unwind outside of work. To look after and cater for the growing number of pregnant workers at the Taiwan and Huizhou plants, these plants now offer special meals for pregnant women so they can enjoy proper nutrition. Entertainment: The Employee Benefit Committee was set up by Compeq in accordance with the law. The Committee organizes country excursions, club subsidies, domestic and overseas travel subsidies, wedding, funeral and birth subsidies. Bonuses are routinely distributed for the three major festivals and birthday gifts. Scholarships are offered for employees' children as well. The Taiwan plants have even signed a preferential contract with nearby childcare/kindergarten institutions. We provide employees with total care on food, clothing, accommodation, education and entertainment. At the same time, Compeq has established company union tasked with protecting labor rights, improving labor knowledge and skills, developing the production businesses and improving workers' quality of life. Apart from pushing for the benefit committee to improve benefits, the mission of the Compeq Union also includes employee subsidies and gifts for weddings, funerals, sickness, and childbirth, the hosting of labor education as well as the organizing of recreational events.
To encourage employees to interact and bond with each other in order to build up employee consensus and rapport with the company, Compeq organizes family day events with group activities. The family day events provide employees with an opportunity to bond with their family so they can achieve a balance between work and family life.
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As part of the continuing improvements to employee welfare, a harmonious and friendly workplace team was set up in 2015. The team will meet every quarter to discuss potential improvements to benefit schemes. 7‐2‐9. 2015 Applications and Employees Returning from Unpaid Parental Leave
Compeq offers employees the option of unpaid parental leave in accordance with the Labor Standards Act of Taiwan. In 2015, a total of 95 people applied for parental leave, an increase of 50 people on 2014. In 2015, 41 employees were expected to return from leave. A return rate of 80% and retention rate of 92% showed that Compeq offers an unobstructed channel for unpaid parental leave which produces high return and retention rates.
7‐2‐10. Working Time Control Mechanism
Control of working time is becoming an increasingly important issue with customers. Compeq has introduced system reminders and HR reporting to improve control over weekly rest days, weekly work hours and extended working hours. Site managers can also use the system to schedule personnel rosters and leave. This will help reduce the number of working time violations. Apart from the above reminders, targets have also been set by Compeq for 2015. A more effective working time control mechanism will be developed in response to the new working time regulations in 2015 to prevent employees from working excessive hours.
Parental Leave Applications and Returns 2014 2015
Item Male Female Total Male Female Total
Number of applicants for parental leave in 2015 10 35 45 44 51 95
Number of employees expected to return from unpaid parental
leave in 2015 4 8 12 16 25 41
Number of employees who returned from unpaid parental
leave in 2015 4 6 10 11 22 33
Return Rate (%) 100% 75% 83% 69% 88% 80%
No. of employees who applied for and actually returned to the
company from unpaid parental leave in 2014
4 13 17 6 19 25
No. of employees who returned from parental leave in 2014 and is
still with the company after 12 months
2 13 15 6 17 23
Retention Rate (%) 50% 100% 88% 100% 89% 92%
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7‐2‐11. Multiple Grievance Channels Open and direct communication between the employees and management
is the most effective way to solve work problems and to build a harmonious enterprise. Employees are always notified in advance before any significant changes to their work. There were no incidents of forced labor and all activities are performed in accordance with law.
Compeq provides comprehensive internal channels for communication as shown below. These include the "Employee Opinion Box" on the Compeq intranet, the "Human Resource Contact Window" on the Compeq website, the "Labor Union" mailbox and hotline. Employees can send their feedback or suggestions through these channels at any time. The Taoyuan City Department of Labor and the Northern Labor Inspection Bureau conducted 9 audits of the Taiwan plants in 2015 with fines issued for excessive work hours. A project has been set up to review and take corrective action.
7‐2‐12. Preventing Sexual Harassment Compeq does everything possible to ban and prevent sexual harassment.
A sexual harassment complaints committee has also been set up in accordance with the law. Once a complaint is received, an investigation is launched by HR. The committee is then convened to discuss and issue a decision. Action is then taken by the incentives and disciplinary committee in accordance with company rules or relevant regulations. Other measures include the "sexual harassment" complaints mailbox and hotline. The complaints channel are also printed on posters and displayed throughout the plants to prevent potential incidents of sexual harassment. Related bulletins are also issued each month to remind employees about the importance of sexual harassment prevention.
2015 Human Rights and Labor Grievance StatisticsPlant Taiwan Plants China Plants
Complaint
Type
Human Rights Working Conditions Human Rights Working
Conditions
Discrimination Leadership Sexual Harassment
Employee/ Employer Dispute
Discrimination Leadership Sexual Harassment
Employee/ Employer Dispute
Resolved Grievances
0 11 1 1 0 0 0 0
Resolved Grievances
0 11 1 1 0 0 0 0
Resolution Percentage (%
)
‐ 100% 100% 100% ‐ ‐ ‐ ‐
↑ The above table shows that most of the complaints at the Taiwan plants in 2015 related to management leadership. A dedicated project has been set up as a result along with continuous education and improvement. The remaining cases have been dealt with within the given deadline. There were no similar complaints from the Chinese plants. Most of the complaints were related to lifestyle and benefits. Corrective actions have since been taken.
Tier‐1 manager
Tier‐2 manager
Tier‐3 manager
Union HR/Manager
Employee Opinions Box
E‐mail EEmmppllooyyeeee ccoommmmuunniiccaattiioonn aanndd ggrriieevvaannccee cchhaannnneellss
When I have any questions or experience unfair treatment at
the company, my communication/grievance
channels include... • Server and database connection testing • WIP posting • WIP posting (backup) • MGR posting • MGR posting (backup) • Training and Education website • Employee Opinions Box
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7‐3. Employee Development and Training The company must cultivate professional talent in order to cope with all
kinds of challenges. We are committed to cultivating a pool of high quality human resources for the company through professional techniques and methods. We provide a series of comprehensive training courses that are tailored to the company's organizational structure and functions (e.g. R&D, Sales, Production, QC, Finance, Management, etc.). The head of each functional area must define the skills and know‐how expected at all levels for that field. They must also take responsibility for cultivating their subordinates.
With the assistance of the training unit, managers are given training to equip them with the necessary professional skills and knowledge for their role. It also ensures that these skills and knowledge can be applied in their work. All employees are encouraged to shared their knowledge as well. The outcomes are combined with the performance evaluation system to realize employee development and pass on past experience. The following table shows the number of Compeq employee training hours in 2015:
Country/RegionTaiwan Plants China Plants
Luzhu Plant Dayuan PlantHuizhou Plant
Suzhou PlantChongqing
Plant
Category/Gender Male Female Male Female Male Female Male Female Male Female
Training Hours
New Employees
16.67 14.39 19.85 17.5 26.5 20.3 17.5 17.5 13.6 12.3
Direct 5.9 6.39 7.13 7.65 13.3 15,8 1.13 1.15 7.61 6.56
Indirect 10.1 8.98 17.4 12.45 13.5 8.0 1.08 1.12 6.2 6.2
Management Duty
11.55 10 17.29 14.5 22.1 17.8 1.13 0.73 12.3 10.2
EICC and SA8000 education and training hours (including human rights/anti‐corruption)
2 2 2 0.5 2
*Safety and health training not included in the above training courses.
7‐3‐1. Diversified Training Courses We provide a diverse range of education and training courses. All new
employees regardless of gender, nationality and contract type are required to undergo preliminary training. For current employees we provide online and physical training courses. The teaching format is varied and includes classes, workshops, team meetings, posters, weekly meetings and PA. Specialized training is also provided to employees in different roles. The general curriculum is as shown in the table below:
Training
All Employees
1. Introduction to Compeq (including benefits/organization)
2. HSF 3. EICC/SA8000 4. General safety and health5. Compeq Way
Direct Employees
Foreman
Engineer and above
1. Incentive and Disciplinary Regulations
3. Labor and National Health Insurance
5. Cleanroom clothing7. SOP Concepts
2. Compensation and attendance
4. Handling 6. Basic quality
management 8. Operator training
1. Business secret management
2. Common company terminology
3. Applied statistics techniques
4. Total execution 5. 7‐step 6. PCB knowledge
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As shown above, Compeq provides an extensive and diverse selection of training courses. Specialized training is also provided for particular roles. The goals for each type of training are as follow:
New employee training:Apart from preliminary training: The mentor scheme in addition to the basic training helps new employees learn about the company culture and common language.
Core competency course:Different core competency courses are offered for each department to cultivate employees' presentation, communication and core skills.
Specialist training:Training and education familiarizes employees with QC techniques and treat them as an essential job skill.
Management training:Managers undergo training in a range of management skills such as leadership, team communication, teamwork, decision‐making, and labor legislation.
On‐the‐job training: Provide on‐site workers with training on necessary knowledge, techniques and procedures.CSR training: Regular EICC promotion and development classes are held to educate all employees on human rights and anti‐corruption. Employee coverage is currently 100%.
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8. Community Relations
8‐1. Local Environmental Protection 8‐2. Local Efforts and Feedback
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8. Community Relations Before building a plant, Compeq evaluates the local
environment and community in accordance with the requirements of the local government and legislation. Government regulations are followed during plant construction.
Compeq is headquartered in Xinzhuang Village, Luzhu Township, of Taoyuan County. The community is like the soil in which the enterprise puts down roots. We are aware that, in addition to our own efforts, the success of the enterprise depends on a good community relationship. All plants operated by Compeq make efforts to provide care to the local community. We may only go far if we start right where we are. For an enterprise, the continuous growth “going far” will start with effort in the community where we stand. Therefore, while Compeq focuses on profitability, we also make our efforts to social responsibility of sustainable operation and contribute to the society.
8‐1. Local Environmental Protection Noise Management: Compeq installed the noise insulation walls and panels to maintain harmonious community relations and avoid disturbing the surrounding area. Noise management is constantly monitored to ensure that all noise stay within regulatory limits. Ecological Management: Compeq is also actively greening and planting vegetation within our plants to provide habitats for birds and animals. Soil Management: Compeq was fined by the Environmental Protection Bureau in 2015 for soil and ground water pollution. A task force was set up upon notification and a rehabilitation plan approved by the bureau. Compeq also engaged with the local residents and secured their consent to the rehabilitation plan.
8‐2. Local Efforts and Feedback
Project Sponsored Events in Taiwan Sponsored Events in China
School Events
Sponsorship of the Xinzhuang Elementary School Recorder Team; sponsoring Dazhu Junior High School Rugby Team playing overseas Sponsoring the graduation ceremonies of Xinzhuang, Dahua and Dazhu elementary schools; sponsoring the Dazhu Junior High School graduation ceremony
Donation to Charity and Happiness Initiative Donation to Education Town etc. Sponsorship for the sports carnivals of Dahua, Dazhu, Xinxing and and Wuquan
Elementary Schools Donation to Temples
Donation to Guangfu‐Fude God festival of Xinzhuang Village
Donation to the Xinzhuang Temple (Fulongyen) festival
104th Lantern Festival of Fulongyen
Donation to Fude God festival at Daxing Temple, Xinzhuang Village
Donation to Yuanlao Fude God festival of Xinzhuang Village
Donation to Tudigongpo Fude God festival of Neighborhood 11, Xinzhuang Village
Donation to the Dazhuang Fude God festival of Dayuan Industrial Park
Donation to the Renshou Temple festival in Dayuan District
Donation to associations
Sponsorship of the "2015 Youth Assistance for Disadvantage Children during the Winter Break" event organized by the Dayuan Police Station Sponsorship of the Dazhu Neighborhood Watch training workshop
Sponsorship of the 2015 Spring Study Tour organized by the Xinzhuang Village Community Development Association's Seniors' Club Sponsorship of the 2015 Dayuan District Street Basketball Competition
Hosting of the ritual celebrations held once every six years as part of the "2015 Ghost Festival" on August 28 in Neihai Village Hosting of the 2015 Mid‐Autumn Festival Dinner by the Daxin Social Service Volunteer Association of Luzhu Township Sponsorship of the 2015 Autumn Study Tour organized by the Xinzhuang Office of the Luzhu City Senior Association Donation of patrol car to the Dazhu Neighborhood Watch in Luzhu DistrictHosting of the Dragonboat Festival Children and Youth Welfare Education event by the Daxin Social Service Volunteer Association in Xinzhuang
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GRI G4 Content IndexGeneral Standard Disclosure (Core)
Aspect Indicator Explanation Chapter Page No.
External assurance
Strategy and Analysis G4‐1
Provide a statement from the most senior decision‐maker of the organization (such as CEO, chair, or equivalent senior position) about the relevance of sustainability to the organization and the organization’s strategy for addressing sustainability.
1. Business Strategy and Vision 5 89
Organization Profile
G4‐3 Name of the organization 2‐1‐1. Company Background 7 89
G4‐4 Primary brands, products and/or services 2‐1‐1. Company Background 7 89
G4‐5 Report the location of the organization's headquarters. 2‐1‐1. Company Background 7 89
G4‐6
Report the number of countries where the organization operates, and names of countries where either the organization has significant operations or that are specifically relevant to the sustainability topics covered in the report.
2‐1‐1. Company Background 2‐1‐2. Global Footprint
7 8 89
G4‐7 Nature of ownership and legal form 3‐1‐3. Board of Directors 15 89
G4‐8 Markets served by the organization (including geographic breakdown, sectors served, and types of customers and beneficiaries) 2‐1‐2. Global Footprint 8 89
G4‐9 Scale of the organization 2‐1. About Compeq2‐2‐2. Compeq Organization Chart
714 89
G4‐10
a. Total number of employees by employment contract and gender. b. Total number of permanent employees by employment type and gender. c. Total workforce by employees and supervised workers and by gender. d. Total workforce by region and gender. e. Whether a substantial portion of the organization’s work is performed by workers who are legally recognized as self‐employed, or by individuals other than employees or supervised workers, including employees and supervised employees of contractors.
f. Any significant variations in employment numbers (such as seasonal variations in employment in the tourism or agricultural industries).
7‐2. Compeq and Employees 69 89
G4‐11 Percentage of total employees covered by collective bargaining agreements. 2‐2‐5. Employee Engagement 73 89
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Aspect Indicator Explanation Chapter Page No.
External assurance
G4‐12 Describe the organization's supply chain. 4. Supplier Management 39 89
G4‐13 Any significant changes during the reporting period regarding the organization's size, structure, ownership, or its supply chain. 4. Supplier Management 39 89
G4‐14 Whether and how the precautionary approach or principle is addressed by the organization. 5. Customer Relations 42 89
G4‐15 Externally developed economic, environmental and social charters, principles, or other initiatives to which the organization subscribes or endorses
3‐1. Corporate Social Responsibility at Compeq 24 89
G4‐16 List memberships of associations (such as industry associations) and national or international advocacy organizations 2‐1‐7. Organizational Membership 12 89
Identified Material
Aspects and Boundaries
G4‐17
a. List all entities included in the organization’s consolidated financial statements or equivalent documents.
b. Report whether any entity included in the organization’s consolidated financial statements or equivalent documents is not covered by the report.
2‐1‐1. Financial Performance 13 89
G4‐18
a. Explain the process for defining the report content and the Aspect Boundaries.
b. Explain how the organization has implemented the Reporting Principles for Defining Report Content.
3‐2‐5. Boundaries for Material Issues of Concern 32 89
G4‐19 List all the material Aspects identified in the process for defining report content. 3‐2‐3. Issue Survey and Response 30 89
G4‐20 For each material Aspect, report the Aspect Boundary within the organization 3‐2‐3. Issue Survey and Response 30 89
G4‐21 For each material Aspect, report the Aspect Boundary outside the organization 3‐2‐3. Issue Survey and Response 30 89
G4‐22 Report the effect of any restatements of information provided in previous reports, and the reasons for such restatements.
Compeq was not restructured during this reporting period. ‐ 89
G4‐23 Report significant changes from previous reporting periods in the Scope and Aspect Boundaries.
3‐2‐5. Boundaries for Material Issues of Concern 32 89
Stakeholders Participation
G4‐24 Provide a list of stakeholder groups engaged by the organization. 3‐2. Stakeholder and Material Aspect Identification 26 89
G4‐25 Report the basis for identification and selection of stakeholders with whom to engage.
3‐2. Stakeholder and Material Aspect Identification 26 89
G4‐26 Report the organization's approach to stakeholder engagement, including frequency of engagement by type and by stakeholder group, and an
3‐2. Stakeholder and Material Aspect Identification 26 89
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Aspect Indicator Explanation Chapter Page No.
External assurance
indication of whether any of the engagement was undertaken specifically as part of the report preparation process.
G4‐27
Report key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting. Report the stakeholder groups that raised each of the key topics and concerns.
3‐2. Stakeholder and Material Aspect Identification 26 89
Report Profile
G4‐28 Reporting period (such as fiscal or calendar year) for information provided. Compeq Corporate Social Responsibility Report Profile 2 89
G4‐29 Date of most recent previous report (if any) Compeq Corporate Social Responsibility Report Profile 2 89
G4‐30 Reporting cycle (such as annual, biennial). Compeq Corporate Social Responsibility Report Profile 2 89
G4‐31 Contact point for questions regarding the report or its contents Compeq Corporate Social Responsibility Report Profile 2 89
G4‐32
a. Report the ‘in accordance’ option the organization has chosen (core or whole).
b. Report the GRI Content Index for the chosen option. c. Report the reference to the External Assurance Report, if the report has been externally assured. GRI recommends the use of external assurance but it is not a requirement to be ‘in accordance’ with the Guidelines.
Compeq Corporate Social Responsibility Report Profile 2 89
G4‐33
a. Report the organization’s policy and current practice with regard to seeking external assurance for the report.
b. If not included in the assurance report accompanying the sustainability report, report the scope and basis of any external assurance provided.
c. Report the relationship between the organization and the assurance providers.
d. Report whether the highest governance body or senior executives are involved in seeking assurance for the organization’s sustainability report.
Compeq Corporate Social Responsibility Report Profile 2 89
G4‐34 Report the governance structure of the organization, including committees of the highest governance body. Identify any committees responsible for decision‐making on economic, environmental and social impacts.
3‐1‐1. CSR Organization 24 89
Business Ethics and
Integrity G4‐56
Describe the organization’s values, principles, standards and norms of behavior such as codes of conduct and codes of ethics. 3‐1‐2. Social Responsibility Policy 24 89
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Specific Standard Disclosure (Core): 10 items in the Economic and Environmental Aspects (new disclosures are in orange text)
Category Aspect Indicator Content Chapter Page No.
External assurance
Economy
◎ Economic Performance
Management Practices
2‐2‐6. Financial Situation and Risk Assessment 22 89
G4‐EC1
Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations, and other community investments, retained earnings, and payments to capital providers and governments
2‐1‐1. 2015 Financial Performance 13 89
G4‐EC2 Financial implications and other risks and opportunities for the organization's activities due to climate change.
2‐2‐4. Corporate Governance and Risk Assessment 17 89
G4‐EC3 Coverage of the organization's defined benefit plan obligations 7‐2‐8. Basic Benefits 74 89
◎Market Presence
Management Practices 4. Supply Chain Management 39 89
G4‐EC5 Ratios of standard entry level wage by gender compared to local minimum wage at significant locations of operation 7‐2‐7. Compensation 74 89
G4‐EC6 Proportion of senior management hired from the local community at significant locations of operations 7‐2‐4. Employee Composition 70 89
Environment
◎Material Management
Management Practices 5.2. Green Product 45 89
G4‐EN1 Materials used by weight or volume 4‐1‐5. Procurement Types 40 89
G4‐EN2 Percentage of materials used that are recycled input materials 6.6. Waste Management 58 89
◎ Energy Management
Management Practices
6.4. Energy and Power Consumption Management 54 89
G4‐EN3 Energy consumption within the organization 6.4. Energy and Power Consumption Management 54 89
G4‐EN5 Energy intensity 6.4. Energy and Power Consumption Management 54 89
◎Water Resource
Management
Management Practices 6.5. Water Resource Management 56 89
G4‐EN8 Total water withdrawal by source 6.5. Water Resource Management 56 89
G4‐EN9 Water sources significantly affected by withdrawal of water No significant effect from the withdrawal of water ‐ 89
G4‐EN10 Percentage and total volume of water recycled and reused 6.5‐2. Discharge Water Recycling Targets and Results 57 89
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Category Aspect Indicator Content Chapter Page No.
External assurance
◎Emissions
Management Practices
6.2. Greenhouse Gas Management 50 89
G4‐EN15 Direct greenhouse gas (GHG) emissions (Scope 1) 6‐2‐1. Greenhouse Gas Inventory 51 89 G4‐EN16 Energy indirect greenhouse gas (GHG) emissions (Scope 2) 6‐2‐1. Greenhouse Gas Inventory 51 89 G4‐EN18 Greenhouse gas (GHG) emissions intensity 6‐2‐1. Greenhouse Gas Inventory 51 89 G4‐EN19 Reduction of greenhouse gas (GHG) emissions 6‐2‐1. Greenhouse Gas Inventory 51 89
G4‐EN21 NOx, SOx, and other significant air emissions 6‐2‐3. Energy Saving and Carbon Reduction 53 89
◎Effluent and Waste
Management Practices
6.8. Future Direction in Pollution Prevention 61 89
G4‐EN22 Total water discharge by quality and destination 6.7. Environmental Performance Indicators 59 89
G4‐EN23 Total weight of waste by type and disposal method 6.6. Waste Management 58 89
G4‐EN24 Total number and volume of significant spills 6.7. Environmental Performance Indicators 61 89
◎ Environmental Compliance
Management Practices
6.8. Future Direction in Pollution Prevention 61 89
G4‐EN29 Monetary value of significant fines and total number of non‐monetary sanctions for non‐compliance with environmental laws and regulations
6‐7‐2. 2015 Environmental Compliance 60 89
◎ Environmental Management
Management Practices 6‐1. Compeq Green Commitment 49 89
G4‐EN31 Total environmental protection expenditures and investments by type
6‐7‐1. 2015 Environmental Expenditures 60 89
☆Supplier Environmental Assessment
Management Practices 6‐1. Compeq Green Commitment 49 89
G4‐EN32 Percentage of new suppliers that were screened using environmental criteria
4‐1‐3. Supplier Social Responsibility Audit Results 40 89
G4‐EN33 Significant actual and potential negative environmental impacts in the supply chain and the action take
4‐1‐4. Waste Contractor Environmental Audit Results 40 89
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Specific Standard Disclosures (Core): Total of 6 items in the Social ‐ Labor Practices aspect
Category Aspect Indicator Content Chapter Page No.
External assurance
Society
Labor Practices
◎Labor Practices and Decent Work
Management Practices 7‐2‐2. Employee Overview 69 89
G4‐LA1 Total number and rates of new employee hires and employee turnover by age group, gender and region 7‐2‐2. Employee Overview 69 89
G4‐LA2 Benefits provided to full‐time employees that are not provided to temporary or part‐time employees, by significant locations of operation 7‐2‐8. Basic Benefits 74 89
G4‐LA3 Return to work and retention rates after parental leave, by gender 7‐2‐8. Basic Benefits 74 89
◎Labor Relations
Management Practices
In accordance with the relevant labor laws and regulations 89
G4‐LA4 Minimum notice periods regarding operational changes, including whether these are specified in the collective agreements.
There were no significant operational changes in 2015 and all regulations were defined in accordance with the law.
89
◎Occupational Health and Safety
Management Practices 7‐1. Occupational Health and Safety 63 89
G4‐LA5 Percentage of total workforce represented in formal joint management‐worker health and safety committees that help monitor and advise on occupational health and safety programs.
7‐1. Occupational Health and Safety 63 89
G4‐LA6 Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and total number of work‐related fatalities, by region and by gender.
7‐1. Occupational Health and SafetyIn 2015 there were occupational injuries at Compeq or to its contractors.
63 89
☆Training and Education
Management Practices
7‐3. Employee Development and Training 77 89
G4‐LA9 Average hours of training per year per employee by gender, and by employee category
7‐3. Employee Development and Training 77 89
G4‐LA10 Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings.
7‐3. Employee Development and Training 77
89
G4‐LA11 Percentage of employees receiving regular performance and career development reviews, by gender and by employee category
7‐3. Employee Development and Training 77 89
☆Diversity and Equal Opportunity
Management Practices 7‐2‐2. Employee Overview 69 89
G4‐LA12 Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity
7‐2‐2. Employee Overview 69 89
G4‐LA15 Significant actual and potential negative impacts for labor practices in the supply chain and the action take 4. Supplier Management 39 89
☆Labor Practices Grievance Mechanisms
Management Practices 7‐2‐11. Multiple Grievance Channels 76 89
G4‐LA16 Number of grievances about labor practices filed, addressed, and resolved through formal grievance mechanisms 7‐2‐11. Multiple Grievance Channels 76 89
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Specific Standard Disclosures (Core): Total of 5 items in the Social ‐ Human Rights and Social aspects
Category Aspect Indicator Content Chapter Page No.
External assurance
Society
Hum
an Rights
◎Non‐Discrimination Management
Management Practices
7‐2‐2. Diversity and Equal Opportunity Employment
70 89
G4‐HR3 Total number of incidents of discrimination and corrective actions taken 7‐2‐2. Employee Overview 69 89
◎Supplier Human Rights Assessment
Management Practices
4. Supplier Management 39 89
G4‐HR10 Percentage of new suppliers that were screened using human rights criteria 4. Supplier Management 39 89
G4‐HR11 Significant actual and potential negative human rights impacts in the supply chain and the action take
4. Supplier Management 39 89
Society
Society
◎Local Community Management
G4‐SO1 Percentage of operations with implemented local community engagement, impact assessments, and development programs
8‐2. Local Efforts and Feedback 80 89
G4‐SO2 Operations with significant actual and potential negative impacts on local communities
8‐1. Local Environmental Protection 80 89
◎Anti‐Corruption Mechanism
Management Practices
7‐3. Employee Development and Training
77 89
G4‐SO3 Total number and percentage of operations assessed for risks related to corruption and the significant risks identified
5‐1‐3. Customer Satisfaction 44 89
G4‐SO4 Communication and training on anti‐corruption policies and procedures 7‐3. Employee Development and Training
77 89
G4‐SO5 Confirmed incidents of corruption and actions taken There were no incidents of corruption in 2015
‐ 89
◎Ethics Compliance G4‐SO8 Monetary value of significant fines and total number of non‐monetary sanctions for non‐compliance with laws and regulations
There were no significant fines in 2015 ‐ 89
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Specific Standard Disclosure (Core): Total of 4 items in Social ‐ Product Responsibility Aspect
Category Aspect Indicator Content Chapter Page No.
External assurance
Society
Product Responsibility
◎Customer Health and Safety
Management Practices 5.2 Green Product 45 89
G4‐PR1 Percentage of significant product and service categories for which health and safety impacts are assessed for improvement 5.2 Green Product 45 89
G4‐PR2 Total number of incidents of non‐compliance with regulations and voluntary codes concerning the health and safety impacts of products and services during their life cycle, by types of outcomes
5.2 Green Product Compeq had no incidents of non‐compliance on the health and safety of product and services in 2014
45 89
◎Product and Service Labeling
Management Practices 5.2 Green Product 45 89
G4‐PR3
Type of product and service information required by the organization’s procedures for product and service information and labeling, and percentage of significant product and service categories subject to such information requirements
5.2 Green Product 45 89
G4‐PR4 Total number of incidents of non‐compliance with regulations and voluntary codes concerning product and service information and labeling, by types of outcomes
Compeq had no customer complaints due to violation of international green product standard by any product in 2015. There were also no significant fines due to violation of any legislation related to product provision and use.
‐ 89
G4‐PR5 Customer Satisfaction Survey Results 5‐1‐3. Customer Satisfaction 44 89
◎Customer Confidentiality Management
Management Practices
5‐1‐2. Confidentiality of Customer Information 44 89
G4‐PR8 Total number of substantiated complaints regarding breaches of customer privacy and loss of customer data
5‐1‐2. Confidentiality of Customer Information Compeq received no complaints over infringement of customer confidentiality in 2014.
44 89
◎Product Compliance
Management Practices 5‐1‐1. Regulatory Compliance 43 89
G4‐PR9 Monetary value of significant fines for non‐compliance with laws and regulations concerning the provision and use of products and services.
5‐1‐1. Regulatory Compliance In 2014, Compeq did not incur any serious fines for violation of legislation related to service provision.
43 89
75
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Assurance Statement
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