Sustainable Management

Sustainable Development Policy

Sustainable Development Policy
In accordance with the Sustainable Development Best Practice Principles, Tung Ho Steel established the following Sustainable Development Policy, which was approved in the 18th meeting of the 23rd session of Board of Directors on December 31, 2019.
Integrity Governance	Implement corporate governance, establish high-quality corporate culture, and work for corporate integrity management.
Economic Sustainability	Innovative technical services, enhance operating performance, maintain stable profitability and work for sustainable operations.
Environmental Protection	Actively respond to climate change, promote circular use of resources, continue to reduce waste, energy use and carbon emissions and work for the implementation of environmental protection.
Friendly Workplace	Establish a sound and complete system and harmonious labor-employment relations, and create a safe and friendly workplace environment.
Social Prosperity	Reward academic and humanistic development, pay attention to social issues, actively participate in public welfare activities and work for social prosperity.

Organizational structure of Corporate Social Responsibility Team

To implement the promotion of corporate social responsibility, Tung Ho Steel established the “Corporate Social Responsibility Best Practice Principles” in March 2015 (changed to “Sustainability Development Best Practice Principles” on March 10, 2022) and set up a cross-departmental “Corporate Social Responsibility Team” in December of the same year. Since corporate sustainability has been regarded as one of the important corporate strategies, a new functional committee, Corporate Governance Committee, was added to the Board of Directors in September 2019, and the Corporate Governance Committee was renamed the Corporate Governance and Nominating Committee upon the revision of the Articles of Incorporation in the shareholders’ meeting held in July, 2021. Under the Committee are five groups in charge of relevant business, including Corporate Governance Group, Sustainable Development Group, Integrity Management Group, Environmental Sustainability Group, and Risk Management Group. Among them, the Corporate Social Responsibility Group is divided into five subgroups, including Corporate Governance, Environmental Sustainability, Product Liability, Employee Relations, and Social Welfare Groups. Each group responds to its corresponding department and conducts regular discussions on the identification of stakeholders in accordance with the scope of their business, and the Administration Division is in charge of the secretariat affairs.

The Rules Governing the Preparation and Internal Verification and Validation of Sustainability Reports was passed on April 14, 2022 to serve as a basis for the preparation, international verification and validation related work.

Year	Development
2016	Voluntary publication of the first CSR Report
2017	Established Rules Governing the Internal Verification of Corporate Social Responsibility Report
2018	Tung Ho Steel was included in TWSE Corporate Governance 100 Index
2019	The CSR Team was incorporated into the Corporate Governance Committee and is subordinate to the Board of Directors Established CSR policy and human rights policy
2020	Established Risk Management Policy Established Supplier Management Policy
2021	Ranked in the top 5% among the listed companies in the 7th TWSE Corporate Governance Evaluation In the shareholders’ meeting held in July, it was passed to revise the Articles of Incorporation and rename the Corporate Governance Committee “Corporate Governance and Nominating Committee”. Publication of the first English CSR Report

Sustainable Development Group conducted education and training on the current condition and trends of CSR in November and December, 2021, and the content included sustainable development and challenges, international trends, current legal prescriptions, introduction of revision of GRI Standards for topics and so on. In addition, meetings for stakeholder identification, questionnaire distribution and identification of material topics were held. After data collection, meetings for group discussion and first draft discussion were convened in January and March, 2021. The Verification Group was also established for internal verification operations. The Report was verified by an impartial third party, submitted to the Corporate Governance and Nominating Committee and Board of Directors, and was finally issued upon approval by the Chairman.

The issuance of this 2021 Corporate Sustainability Report was reported to the 4th meeting of the 2nd Session of Corporate Governance and Nominating Committee and the 18th meeting of the 24th Session of Board of Directors in May, 2022.