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Report ContentsITEQ Corporation (hereinafter known as the Company, ITEQ Corporation or We) was established in 1997. For many years, we have dedicated to High-end copper clad laminate, prepreg, mass lamination, and thermal conductivity materials.

In 2017, ITEQ Corporation will launch first CSR report, which will be public on the Market Observation Post System and the company’s website. We hope that the CSR report can act as a communication channel and platform between ITEQ Corporation and stakeholders, to state ITEQ’s efforts and performance in the areas of economics, environment and social issues.

This report has been composed according to the GRI 4.0 structure disclosed by the GRI (Global Reporting Initiative), with the core intent of disclosing data. All financial statistics within this report are in NT dollars and has been approved by Accountants. Other relevant statistics are shown in international index as calculation basis. If the disclosing indexes have specific meaning, we will state by notes.

Report Time & CycleIn 2017, ITEQ Corporation will launch first CSR report of 2016 (1st January 2016 to 31st December 2016) regarding the performance in sustainable development and response to issues that stakeholders mostly are concerned about. To ensure the completeness and comparability of data, a portion of the data goes back to 2014 or uses data from 2017. Starting from 2017, ITEQ Corporation will provide CSR reports on an annual basis.

Border & ScopeThis report includes financial information of ITEQ Corporation that has been verified by Accountants but does not include investment businesses within the merging financial statement.

Contact Information Contact: Chou Rung Tsan, Senior Director of Finance Center Address: No.17, Daluge Rd., Xinpu Township, Hsinchu County 305, Taiwan (R.O.C.)Telephone No.:+886-3-588-7888E-mail：[email protected]: www.iteq.com.tw

ITEQ CORPORATION 2016 CSR01

Tsai Mao Chen

Tsai Shing Shue

Sincerity is the key to the start and the end; without it, nothing will

exist. Today marks the 20th anniversary of ITEQ’s establishment. We

uphold Sincerity, Self-discipline, and Professional Suppleness as core

values in providing related high-end application of products for high

quality PCB .Our constant innovation has allowed us to surpass our

costumer’s expectations and provided values to our shareholders,

employees and society.

In the process of self-improvement, we believe CSR is a path and direction

which has allowed ITEQ to maintain competitive advantages and to

enhance developments. At the same time, it is the foundation of the

company sustainability management.

Having been entrusted with the sustainability and development of the

company, we implemented“Innovation, Cooperation, Excellence, and

Quality”into our company culture and are devoted to developing highly

efficient, environmentally friendly products in order to control the impact

to the environment from our production lines. For many consecutive

years, we have increased the number of facilities that help protect the

environment and enhance our friendliness to the environment.

Furthermore, we treat the safety and balanced development of our

employees with high regards. By combining operations management

and the progress of individual careers, we achieved a win-win situation

in the optimal balance between business management and individual

development.


ITEQ’s Efforts towards SDG

In face of the worsening pollution of the global environment and social issues, the UN proposed 17 SDG’s (Sustainable Development Goals) in 2015 in hopes of uniting

different governments, organizations, enterprises and individuals in achieving sustainability. As a member of the world’s supply chain, we approve of the values of SDG

and shall work towards its contribution through achieving goals 5,7,8,12,13 and fulfilling the duties of a global citizen.

SDG ITEQ’s Actions in this category Corresponding Chapter

Goal 5. Achieving gender equality and protecting the rights of women.

．The starting salary of male and female employees are based on the same rewarding principles.

4. Close employee relationship

Goal 7. Making sure that everyone has access to affordable, reliable, sustainable and modern power source.

．The design of the plant revolves around low-carbon emissions. ．Through ISO 14001 environment management system, constantly tracking and

improving relevant power usage. 3. Sustainability Management

Goal 8.Promoting understanding and sustainable economic growth to achieve over-all production and provide good jobs for everyone.

．Continue production and R&D to enhance the products additional value. ．Safety as top priority, providing a safe working environment.

1. Company’s Operation & Management

4. Close employee relationship

Goal 12. Ensure sustainable consumption and production methods.

．Insist on green purchasing, and indulging in the development of environmentally friendly laminate. Taking into account the different impacts of the products life cycle, we chose materials that pose minimal danger and the human body and the environment from initial acquiring of materials all the way to generated production waste.

．Pushed for a waste reduction project in general business operations, allowed by relevant regulations.

2. Green Product Management3. Sustainable environment

management

Goal13. Adopt emergency measures to respond to climate change and its effects.

．All employees indulging in carbon reduction, in daily business operation to reduce the impact of climate change.

3. Sustainable environment management

Image and Goals source: UN Sustainable Development Goals https://sustainabledevelopment.un.org/


1.1 About ITEQ ITEQ was established at 4F.-1, No.26, Sec. 3, Ren’ai Rd., Da’an Dist., Taipei City 106, Taiwan (R.O.C.) in 1997 by Mr. Wan Hai Wei, Kao Ji Tzu and a team of high-tech professionals. Hua Yang Small & Medium Enterprise Development, Polymax Industry and other main shareholders invested in the plant and initiated the development of the domestic market for multi-layer printed circuit board basal materials & copper foil laminate. As one of the supply chains for printed circuit board materials, product property performance and cost competitiveness have always been the driving force behind our product designs. With the advantages of internal R&D, ITEQ has established itself as one of the world’s top brands, especially in halogen free and high TG frequency materials in production process. ITEQ offers all-in-one complete solutions, with services for PCB, Flexible PCB, and Rigid-Flex ones.

NO.1

NO.3

NO.2


ITEQ StatusEstablishment Date 1997

Chairperson Tsai Mao Chen

General Manager Tsai Shing Shue

Paid-in Capital 3,029,572 (thousands)

Turnover of 2016 3,358,130 (thousands)

Number of Employees 390 people (Taiwan) / 2,870 people (worldwide)

Headquarter Address No.17, Daluge Rd., Xinpu Township, Hsinchu County, Taiwan (R.O.C.)

(Last updated 31/12/2016)

ITEQ Key Events

1997 ITEQ was established with a registered capital of 220,000 (thousand NTD). Main products include multi-layer printed circuit board basal materials.

1998

Granted the aid from Industrial Development Bureau, Ministry of Economic Affairs

BSI ISO-9002 verification

2002 ITEQ became an over-the counter company

2005Gained the UN’s RoHS quality verification of Hitachi Chemical, Unimicron Corporation, & Tripod Corporation

2006 Mitsubishi Halogen free usage verification

2008 ITEQ became an OTC Listed company

2011

Received over 11 patents in Taiwan, China and USA on“Heat Dissipation Laminate”& “Heat Dissipation Laminate for LED Back-lighting Module” and gradually applied for 8 domestic & foreign patents regarding improvements in heat dissipation laminate products and its materials.

2014Xinpu plant officially started at the end of August and passed the ISO 14001, OHSAS 18001 testing and gain the ISO TS16949 verification.

ITEQ Organization Chart

Deriving from the electronics industry, ITEQ participates in the industry’s vital organizations and actively observes the development of the industry’s trends and offers assistance when needed.

List of Organizations ITEQ has joined

Name of joined organization Location Identity

Taiwan Printed Circuit Association Taiwan Vice-Director

Taiwan ITRI New Venture Association Taiwan Member

1.2 ITEQ Future VisionOur sustainability core values revolve around Innovation, Teamwork, Excellence and Quality. As an enterprise whose policies revolve around sustainability management, the content of following chapters will be based on the four core values.


1.2.1 Innovation of Ideas, Service in Good Faith

Good Faith is the core of the Company’s management. ITEQ has established a“Code of Good Faith Management”as the fundamental structure in which it bases its reputable business operations on. The code clearly defines the behavior that contradicts good faith, different forms of benefits, company policies and prevention methods that are core the corporation’s good faith management. It also authorizes the Chairperson to come up with a “Good Faith Management SOP & Code of Conduct” as guideline for its implementation. According to the behavior guidelines, the main competent authority of good faith management is the“Management Committee”, which regularly reports the group’s good faith management actions and acts as the contact window for internal & external good faith management issues. We have set communication email address and encourage our employees and external people to contribute to the establishment of good faith.

During 2016, there were no violations to the aforementioned ITEQ Corporation “Code of Good Faith Management” or corruption restrictions. In the future, we shall actively promote inquiry contact window of good faith management to enforce communication.

1.3 ITEQ’s Management StructureCompany management is the foundation of an enterprise’s sustainability. We adopt a decentralized management structure and encourage transparent communication as our company’s governing principle.

1.3.1 A stable management structuretur

The Company’s highest governing team is the board of directors, consisting of 7 directors. To be eligible as a director candidate, the individual not only has to meet the requirements of the law, but must have relevant experience and expertise of the industry. Two of the directors of the board must be independent directors. A“Board of Directors Meeting Regulations”was composed to regulate the call-to-service and meetings of the board. In 2016, the board of directors gathered on 6 occasions, with no violations to the“Board of Directors

Email：[email protected]


Meeting Regulations”. For information on the attendance of directors, please refer to the 2016 shareholder’s meeting report.

The Company has established a “Management Committee” that is responsible for coordinating the usage of cross-department resources as well as building consensus. The management level utilizes mutual agreement methods in the voting of the Company’s major decisions. This includes the Company’s cash flow, business status, major expenditures and proposing improvements as well as suggestions. The execution of relevant actions, ensure highly efficient cross-department team that contributes to the enhancement of integration and efficiency of the Company’s operations. This mechanism assists the board in its role in addition to complete supervision and management enhancement.

Responsibilities of Departments

Department Responsibility

Auditing OfficeAudit,Evaluation of the management of different departments and implementing internal controls as well as provide suggestions for improvement。

Financial Center Manage the corporations finance, accounting, stock & cash operations.

Department of Legal Affairs

Coordinate the corporation’s legal and intellectual property matters

ManagementCoordinate the company’s human resource, administration and general affair matters.

Procurement The purchase, import/export of raw materials and production facilities.

Materials Department

Production schedule supervision, material supply supervision, information system planning, and maintenance.

MIS DepartmentThe daily functions of computerization, software design and maintenance of computers as well as develop a system for document management.

Marketing Department

Marketing & Development of client sources in foreign markets. Confirm shipment date and customer management.

QA CenterEstablishment, execution, testing and verification of the quality of prepreg & copper foil laminate.

Tech Service Center

Customer service for the global market and OEM/ODM. Technology & promotion of high-end materials.

Labor Safety Department

The planning, establishment, execution of the plant’s occupational safety.

Manufacture Bureau

Manufacture & Production of prepreg, copper foil laminate; maintenance of production facilities.

R&D CenterCopper foil laminate (including Flexible CCL) , evaluation and SOP establishment of new raw materials. Planning, application and execution of projects.

1.3.2 Information Disclosure

We have authorized Capital Securities Corporation as the transfer agency for issues regarding our stocks. The company has appointed spokesperson & deputy spokesperson positions to communicate with investors, acting as direct bridges between us and our shareholders.

Spokesperson: Tsai Shing Shue/CEO & General Manager

Spokesperson email: [email protected]

Deputy Spokesperson: Chou Rung Tsan/Senior Director

Deputy Spokesperson email: [email protected]

Spokesman service line: （03）588-7888

ITEQ is an OTC-Listed company and by law is required to regularly disclose and upload“certified (annual) or verified (quarter) financial statement”, “annual reports”,“monthly operation performances”,“Shareholder stock change among directors, supervisors, managers and shareholders with over 10% shares”and“shareholder’s meeting information”etc on market observation Post System. Since 2017, we shall regularly produce a CSR report to be placed in the CSR section of the company website, as an important communication channel and platform between us and stakeholders.

1.3.3 CSR Management

In order to implement the concept of sustainability management, the board of directors passed the “CSR guidelines”, with the board of directors as the highest governing team of CSR. Since the start of 2017, ITEQ has established CSR teams dedicated to sustainability issue. A total of 4 teams exist across different areas, composed of suitable supervisors and employees from different departments. They engage in regular discussion meetings. The CSR teams coordinate, manage and execute ITEQ’s policies and events as well as the edition of annual CSR reports.


1.4 Management Performance 1.4.1 Management Performance Policies

In order to see a growth to the company’s profitability, we insist on undergoing R&D of new products and manufacturing process in addition to actively developing environmentally friendly 4c green products, applicable in ratio transmission facilities, communication base stations, high-end server computers, wireless transmitters, information storage cloud facilities, smart phones and laptops. As well as key materials for auto-electronics, portable personal wearable accessories, Rigid-Flex Boards and other related fields.

Short & Long Term Development Plans


Management Performance of past 3 years Unit: Thousand NTD

2014 2015 2016

Revenue 20,145,767 19,077,278 19,681,638

Gross Margin Profit 2,185,746 2,374,641 2,866,558

Operating Income 913,259 1,117,025 1,588,217

Non-operating income & expenditure 17,208 （48,469） 25,321

Net profit before tax 930,467 1,068,556 1,613,538

Current Net profit 529,762 600,054 951,958

Earnings per share 1.62 1.92 3.13

1.4.2 Government Financial Subsidy

Technology innovation is the core of ITEQ’s competitiveness. We applied for R&D Investment Deduction according to the industries innovation regulations.

Investment Tax Credit by YearUnit: NTD

　 2014 2015 2016

Tax Credit by Year(Declared)(I) 10,253,439 10,907,154 11,578,783

Accumulated Prior Year’s Tax Credit(II) 0　 0　 0

Scheduled Reduction tax and Actual Reduction by Year(III) 10,253,439 9,820,746 11,578,783

Unreduced Offset Against Business Tax Payable(I)-(II)-(III) - 1,086,408 0

Except application for industry R&D laws, the Company received the“A+ Industrial Innovative R&D Program”grant from Ministry of Economic Affairs for pioneering technology, the forward plan for the development of innovative and high-end technologies. The grant is scheduled for 2015-2018.

2015-2018 Subsidy Unit: NTD

The “A+ Industrial Innovative R&D Program” grant

2015 2016 2017 2018

First Phase Payment 3,938,000 9,352,000 7,554,000 6,449,000

Second Phase Payment - 9,353,000 7,554,000 -

Total 3,938,000 18,705,000 15,108,000 6,449,000

1.4.3 Technology Excellence

Our aim is not only to become professionals in laminate production, but expert manufacturers in electronic component parts. We seek excellence quality to fulfill our customer’s requirements, which is why the company’s investment in employee training and R&D development is a continuous affair. Every year, a significant sum is poured in R&D as well as human resources, with lucrative results. All of the Company’s R&D in product technology are market oriented. In addition, Xinpu plant has efficiently enhanced the company’s capabilities in high-end cloud server, the stability of network communication product scales and thin board production. Our production of halogen free, ultra-thin film and deformation stability, used in high-end smart phones and tablets, like Japanese manufactured products. In 2016, the Company’s R&D has moved towards high-end halogen free, high heat dissipation substrate, Ultra-high speed low loss transmission, auto motive, smart phone, Tablet PC and Rigid-Flex products. Integration of Chip Set material vendors and Industrial Technology Research Institute of Taiwan, R.O.C with system users has allowed better control of key raw materials and product usage trends. We fully expect our products to be equipped with pioneering and competitiveness advantages.


R&D Performances of Recent Years

Although the PC, NB, smart phones and tablet market has gradually saturated but with the rising popularity of portable devices, the demand for servers, , network communication facilities, storage devices from Cloud computation, IoT has increased. The support systems of man-less automotives, automotive

electronics will become the future trend. Communication and automotive products have the potential to provide the company with renewed operation momentum and is one of the Company’s important R&D goals.

1.5 Responsibilities of ITEQ1.5.1 The risks and challenges of climate change

The effects of climate change have presented the world with a serious challenge. As a CSR oriented enterprise, ITEQ acts in environmental protection is our response to such challenge. For information and performance indicators of relevant environment management policies, please refer to the “Sustainable Environment Management” chapter of this report.

1.5.2 Legal Compliance

The Law Department is responsible for the management of legal compliance at ITEQ. In 2016, we saw no violations in terms of products, employees and social issues. However, on 14th August 2016, the Hsinchu Environmental Protection Bureau ran tests on the Company’s plants and implemented fines according to Environmental Impact Assessment Act, Air Pollution Prevention laws and Waste Disposal Act.

2016 Environmental Law violations

Unit: NTD

Reason Fine Follow-up Actions

5ppm。 SOX levels exceeded the 5ppm amount promised in the environment impact guidelines

300,000

Expert technicians are invited to discuss items regarding content change to the environment report and acquired the approval of Hsinchu County Environmental Protection Bureau for the postpone of the report to 20th May 2017.

Failed to apply for the installation and operating license for the Regenerative Incinerator

100,000Application for operating License, after Environmental Impact report has been approved by competent authorities

Waste storage within the plant lacks proofs for surface water, rain,& underground water. A lack of warning signs for the industrial waste (C-0301) storage

66,000The initiation of the construction of Organic solvent waste storage area, to be completed in October of the same year


2.1.Communication with StakeholdersITEQ refers to stakeholders’ideas and needs when managing key

operations. Through daily interaction with our stakeholders, we identify

major stakeholders based on dependency, responsibility, influence,

multiple views, and degree of concern and classify them into investors,

competent authorities, clients, suppliers, communities, employees,

and banks. To understand our stakeholders’ issues of concern and

feedback, we have a well-established communication system and provide

the contact information on our website. The following table shows the

channel, frequency and issues of communication with stakeholders.

Channel, Frequency and Issues of Communication with Stakeholders

Stakeholder Channel of Communication Frequency of

CommunicationIssue

Investors (Shareholders)

．Annual shareholders’ meeting．Publication of quarterly financial

statements/annual report in accordance with the regulations

．Reply to inquiries or needs by phone or email

．Important disclosures on ITEQ’s website

．Once a year．Four times a year

．From time to time, at any time


Corporate governanceBusiness strategy and sustainable developmentFinance and profitabilityTechnology R&D and innovationInformation disclosure and transparencyTechnology R&D and innovation

Investors (Board of Directors)

．Board of Directors ．Audit report ．Annual Statement on Internal

Control ．Remuneration Committee

．Six times in 2016．On a regular basis．On a regular basis

．Four times in 2016

Competent Authorities

．Official documents．Reply to inquiries of the

competent authority and supplementaries

．Important disclosures and related reports in accordance with the regulations of the competent authority

．From time to time．From time to time

．From time to time

Compliance GHG management Energy/resource management


Stakeholder Channel of Communication Frequency of

CommunicationIssue

Clients

．Client audit．Business meetings ．Customer satisfaction survey．Technology seminars．CSR audit

．On a regular basis．From time to time．On a regular basis．From time to time．On a regular basis

Business integrity Environmental pollution controlProduct qualityInformation security Customer relations

Suppliers

．Supplier regular meetings．Regular audit, evaluation, and

counseling．Supplier compliant system．Technology seminars．Project spread out ．Supplier training

．On a regular basis．On a regular basis．From time to time,

continuously．From time to time．From time to time．On a regular basis

Corporate governanceSupplier chain managementFinance and profitabilityInformation securityInformation disclosure and transparency

Communities

．ITEQ’s website．Supplier gatherings ．Community activities

．From time to time．From time to time．From time to time

Community participation and feedbackComplianceEnvironmental pollution control

Employees

．Direct supervisors

．Responsible person of Human Resources Department

．ITEQ’s website ．Bulletin boards．Feedback mailbox ．Employee forums/regular labor/

management forums．Monthly meetings ．Employee complaint system

．Employee Welfare Committee and clubs

．Activities ．Training programs and policy

promotion meetings



．From time to time．From time to time．From time to time．From time to time/

quarterly ．On a regular basis．From time to time, at any

time． From time to time


Labor/management relations and employee careOccupational safety and health careCompliance Human rightsCorporate imageEmployee career developmentEmployee benefits

Banks

．Business meetings．Customer satisfaction survey


Business strategy and sustainable developmentFinance and profitabilityTechnology R&D and innovationInformation disclosure and transparency

2.2 Identifying Critical Issues This year, ITEQ published the first CSR report. We evaluated critical aspects and boundaries in line with sustainability context, materiality, completeness, and stakeholder Inclusiveness. The procedures for evaluating materiality are as follows:

1. Identification

Through internal discussion and expert opinions, CSR Task Force identified 36 issues in

terms of economy, environment, and society based on characteristics of the industry,

international trends, and peer development; then a survey was made for all colleagues

to fill out based on their interaction with stakeholders. A total of 21 valid questionnaires

were retrieved and used in the analysis of material issues of this Report.

2. Prioritization

The retrieved questionnaires were used to compile the degree of stakeholder concern based

on the weight of each stakeholder, namely the combination of the economic, environmental,

and social impact on ITEQ and the impact of ITEQ on stakeholders; meanwhile, internal

management grade the impact of 36 issues on the economy, environment, and society. At

last, the degree of concern and the degree of impact of each issue are shown in a matrix to

screen material issues in 2016, as shown in the table below.

Analysis of Material Issues


2016 ITEQ Material/Medium/ General Issues

3. Validation

After material issues were validated, we further identified the aspect of each issue and set up the boundary of this Report based on the impact of the inside and outside aspect; corresponding chapters were also provided to ensure that information of stakeholder

concern was fully disclosed.

2016 Material Issues and Boundaries and Corresponding Chapters

Material IssueInside ITEQ

Outside ITEQG4 Material Aspect Corresponding Chapter

Client Supplier Community

Economic Performance

V V VEconomic

PerformanceBusiness Performance

Procurement and Supplier Management

V VProcurement

Practices/Supplier Assessment (Note)

Supplier Chain Management

Chemicals Management

V V ─ Chemicals Management

Air Pollution/Emissions

V V EmissionsPollution and Emission

Management

Effluents and Waste

V V Effluents and WastePollution and Emission

Management

Nontoxic Products

V V VCustomer Health

and SafetySupplier Chain Management

R & D and Patents V V ─ Business Performance

Environmental Compliance

V V VEnvironmental

Compliance

Responsible ITEQOccupational Safety and

Health

Product Compliance

V V VProduct

Compliance

Responsible ITEQSupplier Chain Management

Labor/Management

RelationsV

Labor/Management

RelationsEmployee Care

Training and Education

VTraining and

EducationEmployee Training and

Promotion

Social Compliance

V V V Social ComplianceResponsible ITEQ

Occupational Safety and Health

Customer Satisfaction

V VProduct and

Service LabelingCustomer Service and

Management

Marketing Communications

V VMarketing

CommunicationsCustomer Service and

Management

Note: Supplier Environmental Assessment, Supplier Assessment for Labor Practices, Supplier Human Rights Assessment, and Supplier Assessment for Impacts on Society

4. Review

After this Report was complied, CSR Task Force Team reviewed this Report to ensure

that the disclosures were properly and faithfully presented. The identified material

issues and stakeholders’feedback will serve as the reference to the next year’s CSR

report.


3.1 Supply Chain Management3.1.1 Local Procurement

ITEQ’s suppliers consist of well-known manufacturers at home and abroad with a considerable degree of quality. In addition to maintaining a constant good relationship with each supplier, we have actively developed new sources of purchase to ensure sufficient materials. To save costs, control delivery, and reduce carbon emissions arising from transport, we also continuously promote local procurement. In 2016, local procurement of raw materials accounted for 90% and all of our engineering materials and supplies were sourced from local suppliers; part of technology is controlled by foreign companies, so the percentage of equipment sourced from local suppliers was relatively low and achieved 82%. Overall, the purchase volume of our major raw materials, namely copper foil, fiberglass cloth, and chemicals (such as epoxy) was 2,880 tons, 18,590,000 meters, and 6,504 tons in 2016, respectively.

NO.1

NO.2


Use of Major Materials

Type of Material Unit 2016 Purchase Volume

Copper Foil kg 2,880,401

Fiberglass Cloth m 18,596,953

Chemicals kg 6,504,111

Major Suppliers and Local Procurement

Type of Supplier Raw MaterialsEngineering

Materials Supplies Equipment

Number of Suppliers 81 39 239 15

Transaction Amount (%) 85.1% 8.6% 2.5% 3.8%

Local and Overseas Procurement (%)

Local 89.9% 100% 100% 82.2%

Overseas 10.1% 0 0 17.8%

3.1.2 Supplier CSR Risk Management

ITEQ is responsible for environmental and social protection and extends this responsibility to its supplier chain. For a long time, we have set up a complete supplier management system and request all of our suppliers to comply with general ethics, integrity and accountability in addition to quality assurance, while meeting the regulations with regard to environmental protection in terms of products and operations, so as to fulfill the corporate social responsibility.

Supplier Review, Evaluation and Audit

To select and manage suppliers appropriately, we have set up the procedures for supplier management, which request major raw material suppliers to pass review, evaluation and audit, to control risks and ensure sustainable management. In terms of CSR risk assessment of suppliers, we have included the existing supplier evaluation and audit system, which consists of environmental substance management, plant environment management, occupational health and safety, labor, and ethics and morality, in line with Electronic Industry Citizenship Coalition (EICC)

Figure Procedures for Supplier Management

CSR Audit and Evaluation

Aspect Evaluation (Summary)

Environmental Substance

Management

． Environmental training planning ． Environmental substance change management

． Package material management ． Internal audit

． Hazardous substance test ． Test reports

Plant Environment Management

． Environmental management policies and objectives

． Proof of discharge permits

． Emergency response to chemical leakage

． Requirements for environmental management of suppliers

Occupational Health and Safety

． Occupational health and safety policies and objectives

． Training plans for occupational health and safety

． Hazard monitoring and health and safety inspection

． Safety training and personal protection

． Statutory safety permit for special equipment

． Legal identification, updating and communication

Labor ． Labor and employee policies ． Working hour record system

． Labor contracts ． Employee complaint system

Ethics and Morality

． Integrity and anti-bribery regulations ． Protection of intellectual property rights

． Measures for fair trade ． Whistleblower protection mechanisms


The Quality Assurance Center will call the audit team to carry out the annual supplier evaluation every year. The audit team consists of members from quality assurance, manufacturing engineering, manufacturing, and procurement as well as other departments whenever necessary. Normal procurement is granted if the audit score reaches 80 or above (Level B or above); corrective and preventive measures are provided for suppliers for improvement if the audit score is more than 70 but less than 80 (Level C); procurement is suspended if the audit score is less than 70 (Level D) and such suppliers will be removed from the qualified supplier roster and re-evaluated after improvement in accordance with the procedures for new supplier evaluation. In 2016, ITEQ did not have any new raw material supplier and completed the audit of existing 25 suppliers in accordance with the annual audit plan; the result of the audit reported qualified (Level B or above); in addition, 22 of the 25 suppliers completed the CSR evaluation, accounting for 88% of the total suppliers audited.

Conflict Mineral Management

The mining industry of Democratic Republic of the Congo (DRC) is controlled by some interest groups. The conflicts of interests result in armed conflicts and violations of human rights in DRC and its neighboring countries. ITEQ prohibits the use of conflict minerals, including but not limited to cassiterite, wolframite, coltan, gold and its derivatives, particularly Au, Ta, Sn, and W, and requests suppliers and the supply chain to fully understand this information and report any use of conflict minerals. We have requested our raw material suppliers to prohibit the use of conflicting minerals and provide the declaration/guarantee of conflict-free minerals.

3.1.3 Control of Hazardous Substances

The PCB industry has recently responded to an increasing need of light, thin, and multi-function products as well as environmental protection, leading to the large demand for flexible printed boards and IC boards and the pursuit of environmental protection. With popular applications of Big Data, cloud computing, and Internet of Things, there are huge growth and need of ultra-low loss laminate for high frequency communication and new low-loss one. ITEQ has insisted on green procurement for many years by investing in the research and development of green laminates; considering various impacts of product lifecycle on environment, we select raw materials that bring low threats to human bodies and the environment and pay close attention to the future trends of environmental protection as a member of the green supply chain.

Hazardous Substance Management Policy and System

As electronic products change every day, clients or international regulations become stricter with the requirements for hazardous substances. To manage hazardous substances efficiently and systemically, ITEQ has set up the hazardous substance management system in accordance with QC080000 (IECQ HSPM) and the principle of Plan-Do-Check-Action (PDCA) to collect and pay attention to the regulations of green products and document all management procedures and the list of the controlled hazardous substances, so as to ensure effective planning, operation, and supervision that meets customers’requirements.


Figure Hazardous Substance Management

Hazardous Substance Management

Currently, our products have met international regulations of environmental protection, such as EU RoHS, SONY SS-00259, EC Regulation concerning Registration, Evaluation, Authorization and Restriction of Chemicals (REACH), halogen-free and arsenic-free regulations. The Quality Assurance Department will collect and compile international regulations and customers’requirements on a regular basis to update the list of the controlled substances and acceptance criteria. In 2016, ITEQ controlled hazardous substances according to different restrictions and had 36 hazard-free substances, 11 restricted substances, and 169 substances of very high concern (SVHC) under REACH.

ITEQ reviews the HSF data in accordance with the requirements of the environmental substance control standards. The Procurement Department requests suppliers to provide the guarantee of non-use of hazardous substances and related test data, such as a test report issued by a third-party notary, an ingredient table, or the material safety data sheet (MSDS), for the review of R&D, quality assurance and occupational safety and health departments before recognition of parts and establishment of the list of qualified material numbers.

After production, products will be sampled for test by a third-party laboratory; the result of the test will then be recorded in the test report to fully control product compliance. Through the above strict control, no violation of regulations with regard to product health and safety or the principle of voluntariness was reported in 2016.

Figure Procedures for Controlling Hazardous Substances

Figure Hazardous Substance Test List

2016 Hazardous Substance Test List (Test List 2016/07/30)


Product Labeling Management

All of the substrates produced by ITEQ will pass the UL flammability certification and be marked the fire-proof level of 94V-0. Related labels are also affixed to the packages for identification. In addition, resin powder and glass fiber cloth produced in the process of processing will stimulate the throat, skin and eyes when inhaled or contacting human bodies and further harm health. We have fully informed our clients that they shall take necessary protective measures and precautions to protect customers. In 2016, all of our products were labeled in accordance with customers’ requirements and no violation of labeling regulations was reported.

3.2 Customer Service and Management Upholding the customer-oriented business philosophy, ITEQ maintains a stable and good relationship with customers, understands customers’ requirements, and adjusts the operations based on their needs. We continuously carry out audits and make improvements up to customers’ requirements to make profits and achieve a win-win situation. In addition to quality assurance and after-sales service, we market and sell products in compliance with laws and regulations with regard to environmental protection.

3.2.1 Customer Satisfaction

ITEQ’s goal is to provide quality products and services for major clients and develop high-grade special materials with our strategic partners. To achieve this goal, we attach a great importance to customer satisfaction. Every year, ITEQ carries out the customer satisfaction survey covering delivery, technology, quality, improvement in customer complaints, provision of high-grade materials, and hazardous substance compliance. After compiling and analyzing satisfaction indexes, the responsible department submits a report to the executive meeting for review. For unqualified items, the responsible department helps identify the causes based on the interview with clients and information on supplier evaluation or return of purchase provided by QA to verify the result of the evaluation.

In 2016, the average score of our top 10 clients reached Level B or above (3.5 or above) and reported“satisfied”. For items scored Level C or below (3.5 or below), the responsible departments were required to provide corrective and preventive measures. As of today, all of the items have been closed.

Table Items Scored Level C or below in 2016

Item Main Cause Countermeasure Handling Progress

Delivery Yield below 98% Yield reaching 98% Closed

Quality

Main abnormality: Materials purchased: 48% and appearance: 24%.

Analyze causes in a timely manner and review customer complaints at 9:00 and 16:00 every day.

Closed

Improvement in Customer Complaints

Corrective and preventive measures sent to customers exceed the closing time.

1.Customer Service Department replies to customers by e-mail within 72 hours.

2.Abnormality handling: Replacement within 24 hours.

3.Preliminary investigation within 48 hours.

Closed

Figure Result of 2016 Domestic Customer Satisfaction Survey


Figure Result of 2016 Export Customer Satisfaction Survey

3.2.2.Customer Complaint Handling and Confidential Information Protection

Improvement in customer complaints is one of the keys to increasing customer satisfaction. We have set up the customer complaint system for customers to make complaints via ITEQ’s website, telephone and email ([email protected]) at any time. We will handle and analyze customer complaints immediately upon receipt and call a review meeting to propose specific countermeasures against similar issues; in addition, the number of customer complaints has been included in our key performance indicators (KPI). In the annual quality review meeting, we will calculate the number of customer complaints and conduct an analysis based on the cause of abnormality and the type of clients for the next year’s goal of quality improvement

In terms of protection of confidential information, we have entered into confidentiality agreements with our clients and have set up the regulations governing information security to ensure data, system, equipment and network security. In 2016, no violation of customer privacy or loss of customer data was reported.

Figure ITEQ’s Focus on Information Security Control


4.1 Climate Change and Energy ManagementClimate change has become one of the important issues in the 21st century, particularly extreme weather, floods, and droughts arising from climate change in recent years, causing government agencies, enterprises, and private organizations to take mitigation and adaptive measures more actively. Since its establishment, ITEQ has considered the low-carbon design and has implemented energy management in the operation to reduce greenhouse gas (GHG) emissions.

4.1.1 Management Policies and Objectives

ITEQ planned the Xinpu Plant in accordance with the Directions for Promoting Green Factory Labels formulated by Industrial Development Bureau, Ministry of Economic Affairs and promoted energy conservation and carbon reduction in aspects of infrastructure (hardware) and operations (software)

Replacing heavy oil by natural gas, the plant recovers exhaust of the regenerative thermal oxidizer (RTO) to reduce the GHG

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The regenerative thermal oxidizer (RTO) takes advantage of the heat storage of ceramic materials to repeatedly recover up to 95% of waste heat produced from incineration. Powered by natural gas, RTO is an efficient and low-consumption incineration facility.

Figure 1 RTO Operation

4.1.2 Energy Consumption and GHG Emissions

Electricity is the main energy used by ITEQ, followed by natural gas used by boilers and RTOs, gasoline used by business vehicles and transport vehicles, and diesel fuel used by stackers. In 2016, the total energy consumed was 171,195,810MJ; the direct GHG emissions (Scope 1) totaled 5,425 CO2e tons; and the indirect GHG emissions (Scope 2) totaled 10,805.5 CO2e tons. Due to the increase in output, the total energy consumed and GHG emissions in 2016 increased compared to those in 2015.

emissions and maximizes energy conservation and carbon reduction using the equipment and measures specified in the following table.

In terms of software, we introduce the environmental management system (ISO14001) to continuously follow up and improve the use of energy and resources, report the consumption of energy and the action plans for energy conservation to Bureau of Energy, Ministry of Economic Affairs every year in accordance with Energy Administration Act, and announce the Regulations Governing Water and Electricity Conservation in the hope of achieving energy conservation and carbon reduction from daily operations.

Energy Conservation Equipment and Measures in Xinpu Plant

Energy Conserved Carbon Reduced

(CO2e ton/year)Electricity

(1000 kWh/year)Fuel (l/year)

1. Variable-frequency exhaust windmills 36.00 - 19.30

2. Shortened exhaust ducts 7.46 - 4.00

3. High-efficiency motors 88.00 - 47.17

4. Indoor air-conditioning temperature at 27℃ or below

17.86 - 9.57

5. Low-consumption LED lighting 180.00 - 96.48

6. Natural lighting, reducing the use of lights 10.80 - 5.79

7. Variable-frequency air-conditioning water chillers

453.00 - 242.81

8. Controlled lighting at night and on holidays 36.00 - 19.30

9. Rainwater harvest and water supply and drainage systems by way of gravity flow

7.30 - 3.91

10. Automated production lines, reducing fuel consumption of stackers and power consumption of general lighting

4.81 875 2068.58

11. Concentrated office space, reducing use of air conditioning and lighting

180.00 - 96.48

12. Loop and partial pressure design of air compressor piping, reducing pressure loss

30.96 - 16.59

13. Flexible use of cooling fans at the outdoor wet-bulb temperature in winter

39.60 - 21.23


Density of Energy over the Years

2014 2015 2016Change (%) Compared with the Previous Year

Prepreg (PP)

Output (meter) 10,811,604 12,275,897 15,023,272 22.4%

Electricity (kWh/meter)

0.507 0.510 0.435 -14.7%

Natural Gas (cubic meter/

meter)0.113 0.109 0.087 -20.2%

Copper Clad

Laminate (CCL)

Output (piece) 1,776,846 2,761,705 3,669,862 -32.9%

Electricity (kWh/piece)

2.396 1.795 1.531 -14.7%

Natural Gas (cubic meter/

piece)0.829 0.332 0.266 -19.9%

Note: The annual data in the above table are calculated from the average density of energy per month. The consumption of energy is allocated to the manufacturing process of PP and that of CCL by 55% and 40% respectively.

4.1.3 Measures for Energy Conservation and Carbon Reduction

In the last two years, the energy conservation projects promoted by ITEQ included RTO waste heat recovery and process capacity enhancement.

Energy Conservation Projects

Energy Consumption and GHG Emissions over the Years

2014 2015 2016

Energy Consumed

GHG Emissions (Note 3)

Energy Consumed


Energy Consumed


Natural Gas

2,145,400 cubic meters

4,483.9 CO2e tons


5,132.0 CO2e tons


5,393.9 CO2e tons

Diesel Fuel

-(Note 1) -(Note 1) -(Note 1) -(Note 1) 11,173.7 l 31.1 CO2e tons

Electricity15,107,200

kWh7,870.9 CO2e

tons17,942,400

kWh9,473.6 CO2e

tons20,432,000

kWh10,805.5

CO2e tons

Total (Note 2)

135,227,167MJ

12,354.8 CO2e tons (Note 1)

157,118,827MJ

14,605.6 CO2e tons (Note 1)

171,195,810MJ

16,233.5 CO2e tons

Note：(1)The consumption of diesel fuel is calculated since 2016, so there is no data available before 2015. (2)The consumption of gasoline is excluded from energy consumed and GHG emissions.(3)GHG emission factors are based on the electricity emission factors announced by Hsinchu Science

Park Bureau, Ministry of Science and Technology and Bureau of Energy, Ministry of Economic Affairs.

ITEQ’s main manufacturing processes are divided into the manufacturing process of prepreg (PP) and that of copper clad laminate (CCL). As the unit of output used by PP is different from that used by CCL, we calculate the monthly density of energy based on each unit of output, which is one of the performance indicators used to follow up the efficiency of energy. With the increase in output in 2016, density reduced by 17~25% regardless of the increase in the overall consumption of energy. In the future, we will continuously reduce the density of energy consumed.


4.2.2 Emergency Response Plan

In addition to daily management, ITEQ has formulated the Regulations of Emergency Response to accidents, such as fires, explosions, and chemical leakage, to respond to emergencies properly as planned. The procedures for emergency response consist of four phases. The plant has a clear division of powers and responsibilities and works closely with government agencies to minimize possible damage and losses.

In addition, ITEQ also took the following electricity conservation measures in daily operations:

1.Turn off lights and powers of production equipment on weekends and holidays and in non-working hours.

2.Reduce lighting in public areas and on corridors; air conditioning and lighting in restaurants and training classrooms are supplied when used.

3.In summer, use curtains to reduce daylight; set the indoor air conditioning system at 27℃ and adjust in other areas based on the operational requirements.

4.When the outdoor temperature is lower than 25℃, the indoor air-conditioning system shall be switched to the air supply system.

5.Air compressors are microcomputer-controlled and adjusted based on the size of the air load.

6.New facilities featuring energy conservation shall be introduced.

4.2 Chemical ManagementChemicals, including flammable, highly volatile hazardous chemicals, are used as solvents in the manufacturing processes of Prepreg (PP) and copper clad laminate (CCL). Leakage or improper storage of hazardous chemicals will cause serious safety and environmental pollution issues. As a result, ITEQ attaches a great importance to chemical management.

4.2.1 Management Policies

In addition to the source control (see Hazardous Substance Control), ITEQ has specially formulated the Regulations Governing Chemical Management covering the clear procedures for purchase, storage, use, and disposal of chemicals to ensure the safety of employees and the plant and reduce environmental hazards. In 2016, no serious leakage was reported.


The emergency response drill is carried out twice every year to ensure the effectiveness of the emergency response mechanism and improve employees’awareness of crises. In 2016, the chemical leakage drill was carried out in June and December respectively. The results of drills were reviewed and documented.

4.3 Pollution and Emission ManagementAs a member of the PCB industry, ITEQ understands that people are highly concerned about pollution arising from the industrial characteristics, such as air pollution, waste, and wastewater. In addition to responding to stakeholders, we must be responsible for the environment and society to achieve corporate sustainability. Thus, we have set up management policies with regard to pollution and emissions to be followed in the implementation and review of pollution and emission management.


4.3.1 Management Policies and Objectives

In addition to complying with regulations with regard to environmental protection and safety and health, our environmental safety policy aims to reduce risks of employees and the environment caused by ITEQ or activities with the following commitments:

We have set up the environmental management system (ISO14001) to continuously and systematically improve our environmental performance through the principle of PDCA (Plan-Do-Check-Act) and third-party certification. We collect and identify laws and regulations and customers’ requirements that are applicable to the sources of impact on a regular basis, review aspects that have a possible impact on the environment, and evaluate the performance, so as to set up the annual objectives, targets, and management plans. KPIs of operations and activities are also established and supervised by responsible departments and scored quarterly based on the management performance and may be referred to in the performance evaluation and department rating.

Implementation of Environmental Management System in 2016

Objective Target Progress

Comply with regulatory requirements and avoid air pollution

Improve the post-treatment discharge of RTO air pollution preventive equipment

Completed

Avoid air pollution and impact on exhaust of other equipment

Complete installation of clean outlets and clear powder on a regular basis

Completed

Avoid water source pollution Separate water supply piping of the etching chamber based on the type of water sources

Completed

4.3.2 Air Pollution Emissions

ITEQ has formulated the Regulations Governing Exhaust Treatment to prevent gas emitted from the manufacturing process from being discharged without proper treatment, leading to pollution; in addition, the third-party organization is authorized to carry out the air pollutant emission test annually, report on a regular basis and pay air pollution control fees in accordance with the Air Pollution Control Act. ITEQ’s main air pollutants include exhaust emitted from manufacturing processes and from storage tanks.

Air Pollution Emissions over the YearsUnit 2014 2015 2016

Sulfur Oxides Ton 5.53 10.84 16.87

Nitrogen Oxides Ton 3.11 5.88 6.22

Volatile Organic Substances Ton 71.5 36.03 54.34

Note：ITEQ never uses any substance that may destroy the ozone layer, so there was no related data in 2016.

In terms of air pollution control in manufacturing processes, we use natural gas to power boilers. In the last two years, we invested NT$3 million in RTOs to dispose of volatile organic exhaust, resulting in the significant decrease in the emissions of volatile organic substances by 50% in 2015 compared with those in 2014. The main pollutants are decomposed into carbon dioxide and water through high-temperature oxidation, and the quality of exhaust emissions will be much lower than the standards set by the government; in addition, heat of decomposition generated from incineration can be recovered, which significantly reduces the demand for fuel and improves energy conservation. ITEQ has established 8 fixed-top storage tanks under constant pressure to reduce leakage.


In addition to fixed air pollutants, another main source of air pollution is mobile pollutants. Although our transportation vehicles are merely used as business vehicles and for transportation of products, we still join the diesel vehicle self-managed fleet of the passenger and freight carriers in Hsinchu & Miaoli Air Quality Purification Area by entering into the agreement, where we undertake to set up a vehicle maintenance plan, carry out fuel self-management, organize driver training, encourage public transportation or the car-pool, and participate in regular tests to obtain self-managed labels based on the standards for pollution, opacity and horsepower ratio. As of 2016, three of our diesel vehicles obtained the highest label (A-1) and one obtained the A-3 label.

Standards for Self-managed Labels

Level

Standards

Validity PeriodPollution Opacity Horsepower Ratio

A-1 10% 0.3m-1 50%

1 year

A-2 15% 0.5m-1

45%

A-3 20% 0.6m-1

A-4 25% 0.8m-1

A-5 30% 1.0m-1

A-6 Meet emission standards (available only in Hsinchu and Miaoli) 6 months

Figure 5 ITEQ’s Diesel Vehicle A-1 Labels

4.3.3Waste Generation

Waste generated by ITEQ includes general business waste, hazardous business waste, and compulsory universal wastes or regulated reused waste. All of the waste is governed by the Regulations of Waste Management. To reduce waste and promote recycling, we start from the source control. After being sorted by the production department, waste is disposed of by legitimate contractors authorized by Occupational Safety and Health Center in accordance with applicable laws and regulations.

Subject to the provisions of the applicable laws and regulations, we implement the reduction in general business waste through strict garbage classification, non-use of disposable tableware, and garbage recycling (such as PE tapes) and reuse (such as providing wooden pallets for shops nearby; ditch mud and litter rotting naturally). In 2016, general business waste decreased by 6.6% compared with that in 2015.A-5 30% 1.0m-1

A-6 Meet emission standards (available only in Hsinchu and Miaoli) 6 months

g y) , gdecreased by 6.6% compared with that in 2015.


Waste Generation and Disposal over the Years

Unit 2014 2015 2016

Disposal (2016)

Incineration Burial RecoveryOther

(Physical Disposal)

General Business

WasteTon 331.5 837.8 782.3 46.2 % 0 % 0 % 53.8 %

Hazardous Business

WasteTon 334.9 638.2 747.4 24.7 % 0 % 0 % 75.3 %

Regulated Reused Waste

Ton 17.6 112.3 140.3 0 % 0 % 100 % 0 %

Compulsory Universal

WasteTon 886.0 1395.7 1410.7 0 % 0 % 100 % 0 %

Total Ton 1570.0 2984.0 3080.7 - - - -

Note：The increase in hazardous business waste and regulated reused waste was mainly due to the increase in output and unexpected activities, such as remake and output of R&D Laboratory. ITEQ strictly adopts standard operating procedures and repeated confirmation to reduce the generation of unexpected waste.

4.3.4 Wastewater Emissions

As a PCB supplier, ITEQ’s water is sourced from tap water. In 2016, 46,428 cubic meters of water was used. As our main materials must be kept dry to maintain the quality of products, there is no waste water in the pretreatment; cooling water is treated through electrodialysis reversal (EDR) to reduce the conductivity and then to be included in the industrial water pool for reuse. Concentrated wastewater of high conductivity is disposed by authorized contractors, so we do not generate wastewater.

ITEQ’s main sewage is from domestic sewage of employees. After being treated by the domestic sewage treatment system, sewage is further treated by the membrane bio-reactor (MBR) to reach the expected recovery rate of 85%. Recovered sewage is recycled to flush toilets and water plants. Other treated effluents meeting the standards for irrigation are discharged to Neilikeng Creek. We conduct the environmental monitoring of the quality of surface water and groundwater on a quarterly basis; the test items

include dissolved oxygen, suspended solids, biochemical oxygen demand, pH, conductivity, ammonia nitrogen, and total phosphorus. In 2016, the result of environmental monitoring reported no significant impact on the environment. We will continue to monitor the environment.

4.4 Environmental Performance4.4.1 Expenditure and Investment in Environmental Protection

Our focus on environmental protection is also reflected in the expenditure and investment in environmental protection. In 2016, we invested NT$21,259,415 mainly in pollution treatment.

Investment and Expenditure on Environmental Protection over the YearsUnit: NT$

2015 2016

Pollution Preventive Equipment Maintenance 353,429 619,960

Pollution Disposal and Cleaning 16,137,277 19,466,512

Inspections and Tests 32,000 736,183

Environmental Engineering 18,000 0

Investment in Equipment 3,767,750 436,760

Total 20,308,456 21,259,415

Note：Source: ITEQ’s accounting system.

4.4.2 Communication

To fulfill the idea of environmental management at each level of ITEQ and in suppliers and contractors, we have set up channels of communication, such as meetings, to interact with our stakeholders with regard to our commitments to environmental management and performance in the hopes of solving problems quickly and reaching a consensus. Occupational Safety and Health Department is responsible to collect complaints made by stakeholders and report them to the supervisor. Received complaints shall be documented and handled by the responsible unit and reported to our contact person. In 2016, no complaint against the environment was reported.


5.1 Employment5.1.1 Diverse Human Structure

Considering talent development as the company’s core competitiveness, ITEQ has always strived to create a stable and friendly workplace in the hope of growing together with employees. We enhance equal and diverse recruitment regardless of race, sex, age, religion, nationality and political party, emphasize employees’labor and human rights, and strictly prohibit compulsory labor and child labor. Creating an equal and safe workplace is our basic commitment to employees. We also set up a competitive compensation and welfare system and places for learning and development to achieve employee care, harmony in the workplace, and high work efficiency.

As of December 31, 2016, the number of employees in Taiwan was 370 , showing an increase in 4.8% compared with that in 2015. Among all employees, 85 employees were of foreign nationalities and other employees were employed locally. Male and female employees accounted for 68% and 32% of the total employees respectively. About 65% of the employees were aged 40 or below. The human structure was healthy.

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Number of Full-time Employees as of December 31, 2016

Type of Employee20-29 Years Old 30-39 Years Old 40-50 Years Old >50 Years Old

Male Female Male Female Male Female Male Female

President Level 0 0 1 0 1 1 1 0

Director Level 0 0 0 0 3 0 2 0

Manager Level 0 0 5 0 13 5 2 1

Section Head Level 0 0 6 2 5 2 1 0

Administrator Level 10 5 33 29 20 13 0 2

Employee Level 42 9 73 26 26 11 8 12

Total 52 14 118 57 68 32 14 15

5.2 Employee Care5.2.1 Benefits and Remuneration

ITEQ designs its remuneration system for the purpose of recruiting, encouraging, developing and retaining talents and adjusts timely based on the market level to maintain market competitiveness and internal fairness. Yearly bonuses and raises are distributed based on the company’s annual profits, employees’performance and duties, and differentiated salary system to ensure the competitiveness of the overall reward. As of December 31, 2016, ITEQ adopted the principle of equal pay between man and women for equal work with the average minimum wage 1.62 and 1.55 times the basic wage of Taiwan. We encourage colleagues to continuously contribute and expect to recruit and retain outstanding talents through competitive salaries.

Basic Salary as of 2016/12/31 Type of Employee Male Female

Basic Salary of Grassroots Employee 32,357 30,938

Statutory Basic Salary of Grassroots Employee 20,008 20,008

Times of Statutory Minimum Wage 162% 155%

Remuneration Ratio as of 2016/12/31 Type of Employee Male Female

President Level 101% 100%

Director Level 100% None

Manager Level 84% 100%

Section Head Level 116% 100%

Administrator Level 124% 100%

Employee Level 129% 100%

Note: The statistics are based on 100% for female employees.

Upholding the people-oriented concept, ITEQ strives to offer a reasonable salary system, seek welfare for employees, and care for employees’health and life; in addition, we offer a sound safety system, pension and labor and health insurance, complete training programs, and incentives. Related benefits are as follows:

‧Bonuses and year-end bonuses are distributed when annual business objectives are achieved

‧Monthly performance bonuses are distributed according to production and operation

‧Employees are encouraged to subscribe for shares to participate in business operation

‧Implement a retirement system in accordance with the Labor Standards Act

‧Offer labor insurance, National Health Insurance, and group insurance (including regular, accident, and medical insurance)

‧Regular health examination

‧Employee training and regular study club

‧Free meals, uniforms, and parking

‧Dormitories and shuttle bus

‧Basketball courts, table tennis tables and green space


‧Year-end party

In addition, ITEQ also set up the Employee Welfare Committee to offer diverse benefits as follows. In 2016, NT$7,206 thousand was granted：

‧Three Chinese festival bonuses, birthday gift, and Labor Day gift

‧Group insurance

‧Marriage, childbirth, emergency relief, hospitalization, and employee/dependent death grants

‧Recreational and sports activities

‧Free employee travel

‧Scholarships to employees’ children

‧Seminars on health promotion

‧Lottery at the year-end party

To promote the family planning and female reemployment policy, ITEQ set up an unpaid parental leave and reinstatement system in accordance with the Act of Gender Equality in Employment and the Regulations for Implementing Unpaid Parental Leave for Raising Children. To create a workplace that emphasizes work and family balance, employees having worked for one year are eligible to request an unpaid parental leave for up to two years before the children become three years old. In 2016, four male and ten female employees requested an unpaid parental leave.


Request for and Reinstatement from Unpaid Parental Leave in 20162016

ItemMale

Number of Employees

FemaleNumber of Employees

Total

Employees eligible for an unpaid parental leave (A) 4 13 17

Employees requesting an unpaid parental leave (B) 4 10 14

Employees expecting to be reinstated from an unpaid parental leave (C)

2 6 8

Employees being reinstated from an unpaid parental leave in 2016 (D)

1 2 3

Request rate of unpaid parental leave (B/A) 100% 77% 82%

Reinstatement rate (D/C) 50% 33% 38%

ITEQ adopts the defined contribution plan in accordance with the employee pension regulations under the Labor Pension Act. Every month, 6% of an employee’s salary is contributed to the personal pension account under Bureau of Labor Insurance. In 2016, the pension recognized under the defined contribution plan amounted to NT$12,261 thousand. ITEQ adopts the defined benefit plan in accordance with the employee pension regulations under the Labor Standards Act. An employee’s pension is calculated based on the base of the service year and the average monthly wage at the time of retirement. According to the Labor Standards Act, ITEQ contributes 2% of the total salary every month to the account under the Bank of Taiwan in the name of the Labor Retirement Reserve Supervisory Committee. As of December 31, 2016, the defined benefit plan expected to contribute NT$852 thousand in 2016.

5.2.2　Labor/Management Communication

To build a sound labor/management relation, ITEQ respects employees’ freedom of association and rights to negotiate with management and organize the labor/management meetings on a regular basis or from time to time in accordance with the Regulations for Implementing Labor-Management Meeting as the channel of communication between labor and management; in addition, an opinion mailbox and President’s mailbox are set up in public areas to collect complaints. Face-to-face forums are held with colleagues from time to time to solve problems and maintain their rights

In response to the increase in output, Pingzhen Plant was relocated to Xinpu Plant in 2014. ITEQ held the employee meeting at the end of 2013 to explain the planning of Xinpu Plant. At the time of relocation, an explanation of detailed planning and measures was given to relocation departments; in addition, free shuttle buses and car allowances were provided to solve the traffic problem derived from the increase in the distance; dormitories were also offered. Considering employees’safety and traffic conditions, we encouraged employees to go to work by shuttle bus. To provide good accommodation for employees living outside Xinpu, the second floor of the existing dormitory was renovated at the cost of NT$4,683 thousand. Employees filled out the consent to transfer based on their willingness and needs before taking office in Xinpu Plant. As of today, no labor dispute was reported.

To ensure the supply of daily meals on time and the quality of food and nutrition, ITEQ offers lunch, dinner and a late night meal and conducts the satisfaction survey on a regular basis. According to the survey, most of the employees were satisfied with lunch and dinner (scored 3.8~4.1 out of 5). In the future, our employee cafeteria will continuously improve by offering fresh and delicious dishes and seasonal fruits to maintain balanced diet and good health of our employees.

the name of the Labor Retirement Reserve Supervisory Committee. As of December 31, 2016, the defined benefit plan expected to contribute NT$852 thousand in 2016.

To ensure the supply of daily meals on time and the quality of food and nutrition, ITEQ offers lunch, dinner and a late night meal and conducts the satisfaction survey on a regular basis. According to the survey, most of the employees were satisfied with lunch and dinner (scored 3.8~4.1 out of 5). In the future, our empployey e cafeteria will continuously y imprp ove byy offeringgfresh and delicious dishes and seasonal fruits to maintain balanced diet and gogg od healtlthh ofof oourur eempmpploloyeyey eses.


5.3 Occupational Safety and Health5.3.1 Safe Workplace

Regarding employees as the largest asset, ITEQ set up an environmental safety and health system, which covers the code of employee safety and health and occupational safety and health management plans, to strengthen self-examination and environmental management and organize an annual physical examination, fire management, and environmental monitoring for on-site operators on a regular basis, so as to improve the environmental safety and health performance; in addition, we develop employees’ capacity for emergency response and a right concept of the safe workplace through internal/external training to reduce accidents caused by unsafe behavior.

Occupational Safety and Health Belief

ITEQ set up the Occupational Safety and Health Committee in accordance with the law and calls a meeting on a quarterly basis. The Occupational Safety and Health Committee consists of 18 members, including 9 labor

representatives, more than one-third of the quorum. The Occupational Safety and Health Committee is responsible to review occupational safety and health management plans, announce the results of operating environment monitoring, occupational disaster reports, and results of occupational safety competitions, and explain the results of external audits as well as organize safety and health training and review strengths and weaknesses of the quarterly environmental safety and health, so as to make continuous improvement; in addition, the Occupational Safety and Health Committee shall manage contracted construction and educate contractors if any unsafe behavior is identified and include such behavior in the checklist.

Workplace and Employee Safety Policy

Item Measures

Self-examination and environmental management

．Implement the hazardous equipment inspection every day and carry out the safety check on a regular basis

．Carry out the operating environment monitoring semiannually．Examine the public safety of buildings annually

Special staffing and training

．Organize safety training for new employees．Organize external training for supervisors and professionals of

special operations (such as organic solvents and stackers) from time to time

Fire safety and management

．Install firefighting facilities in accordance with the local firefighting regulations and carry out the firefighting knowledge and extinguisher operation training on a regular basis

．Carry out the fire facility check every month．Carry out the fire drill semiannually．Authorize an qualified institution to carry out the fire safety check

annually

ITEQ set up the Occupational Safety and Health Center responsible to promote occupational safety and health. Occupational safety and health employees are designated in each plant to carry out the safety check and audit in the workplace every day; in addition, we authorize the Industrial Safety and Health Association of the R.O.C to carry out the environmental monitoring and identify hazards which may be caused by potential factors (such as organic solvents and special chemicals, dust, lead, and significant noise). An environmental monitoring, including planning, sampling, measurement, and analysis, was carried out in the first and the second half of 2016 respectively to ensure that exposure to


hazards was lower than standards; the results of the environmental monitoring were announced in obvious places or otherwise disclosed. In addition, we strengthened the control of engineering and warning and requested employees to wear personal protective suits appropriately (such as gas masks, earplugs, and ear caps).

To prevent disasters and increase practitioners’understanding of safety and health operations, Occupational Safety and Health Department carries out the monthly training for occupational safety and health employees, hazardous equipment operators, and special operators; in addition, new and transfer employees are given 3~6 hours of pre-service safety and health training by Safety and Health Team and responsible supervisors within three days from the date of service. In 2016, the number of occupational safety and health training hours was 83 and the number of trainees was 34.

2016 Occupational Safety and Health Training Programs

Type Course Name

ManagementISO 14001

OHSAS 18001

Specialty

Scrubber system

VOCs 24hr monitoring system

CCTV monitoring system

Water treatment system (wastewater and recycled water)

Gas leakage detection system

Firefighting System (fire alarm, broadcast, extinguishment, evacuation)

Report for control (air pollution, waste, toxicizer, occupational disaster, and soil pollution)

Occupational Safety

Fire drill

Fire drill (extinguisher operation)

Hazardous equipment safety check

ITEQ carries out the voluntary fire drill and certification with Fire Bureau, Hsinchu County Government semiannually. In 2016, two fire drills were carried out with 128 participants. The drill covered firefighting knowledge, fire equipment operation, emergency evacuation and a comprehensive drill to minimize the risks caused by the accidents.

Prioritizing safety, ITEQ’s safety and health policy aims to provide a safe and secure workplace and achieve zero occupational disaster in the business operation. To manifest our commitment to occupational safety, we have passed the certification of the occupational safety and health management system (OHSAS 18001) since 2012 and continued to pass the certification in April 2016. We identify, evaluate, and control hazardous factors to systematically reduce risks and improve the corporate safety culture. In 2016, no major defect or violation of regulations with regard to environmental safety and health was found. According to the statistics in 2016, the disabling frequency rate and severity rate were 7.06 and 74.21 respectively, which were lower than those in 2015.

Work Injury

2016年 2015年

Disabling Frequency Rate (FR) 7.06 9.23

Disabling Severity Rate (SR) 74.21 255.99

(Note) The formulas are described below：

1)FR = No. of people injured ／ Total work hours *106 (per million working hours)

2)SR = No. of days absent from work due to injuries ／ Total work hours *10 6 (per million working hours)


Absence RateMale Female

Number of Days Absent (Note) 1,131 632

Total Number of Days Worked 63,900 28,180

Absence Rate 1.77% 2.24%

(Note) Number of days absent = Sick leave + Menstrual leave + Work injury leave

Absence rate = (Number of days absent ÷ Total number of days worked) × 100%

5.4 Training and Promotion5.4.1 Training and Education

To improve employees’competencies and the overall competitiveness of the organization, ITEQ has planned a set of talent development systems and an annual training plan, including pre-service training, management training, specialty training, external training, and self-development. We organize pre-service training for new employees to understand the company’s business philosophy, products and quality control, and policies with regard to occupational safety and health, energy conservation, and environmental protection; know-how and skill training are also offered to existing employees to improve personal development and promote management and specialty training programs and the professional certification system. In 2016, ITEQ invested NT$80,000 in training and education to encourage all colleagues to continuously improve their skills and seek promotion when performing existing duties.

Training System

Hierarchical Learning System


Each department sets up the annual training plan based on its work requirements. The training plan mainly covers professionals training, such as introduction to seismic design and construction of piles and retaining walls, and may include additional courses whenever necessary. In 2016, 307 training courses were organized with 8,692 training hours; the number of average training hours per person was 23.49.

Type of Courses in 2016

Type of Course Total Hours %

Existing Employees: Management Training (for Management) 58 7.35%

Existing Employees: Professionals Training (for On-site Technology) 109 13.81%

Existing Employees: Professionals Training (for Engineering R&D) 94 11.91%

Existing Employees: Quality Awareness Training 58 7.35%

Existing Employees: Professionals Training (for Administration) 99 12.54%

Existing Employees: Certification Training 116 14.69%

New Employees: General Education 102 12.92%

Existing Employees: General Education 21 2.66%

Internal Promotion 0.5 0.06%

Personal Development (Study Club, Spirit, EQ Training) 9 1.14%

Other (Project Training) 40 5.07%

Occupational and Environmental Safety Training 83 10.51%

Total 789.5 100%

2016 Average Training Hours by Employee Type

　 Employee Level

Administrator Level

Section Head Level

Manager Level

Director Level

President Level

Total

Total Number

of Training Hours

3781 3672 515 566 126 32 8692

Number of Employees

207 112 16 26 5 4 370

Number of Average

Training Hours

18.27 32.79 32.19 21.77 25.20 8.00 23.49

2016 Average Training Hours by Gender

　 Male Female TotalTotal Number of Training Hours 6112 2580 8692

Number of Employees 252 118 370

Number of Average Training Hours 24.25 21.86 23.49

Special Column: Regulations Governing Professional Certification

To optimize the competency and professionals of special operators in line with the quality management system or national laws and regulations, ITEQ implements the special operation qualification (internal) training. Trainees have to pass the theoretical test and the field practice (at least 90 out of 100) or be certified by an external training institution recognized by the local government. The upper level supervisor shall request the review of the qualification based on the following table one year after the qualification. If the special operators are qualified, the supervisor shall sign in the Qualification List with the approval of the upper level supervisor, submit it to the Administration Department for registration, and then assign the special operators and have them obtain the certificates in accordance with the regulations with regard to occupational safety and health.

5.4.2 Performance Manageme


In addition to guidance and assistance provided by supervisors on a regular basis, ITEQ has set up the Regulations Governing Employee Performance Evaluation to reasonably and effectively evaluate employees’ performance and potential capacity. The performance evaluation serves as the basis of promotion, bonus distribution, annual raise, and transfer or training. Full-time employees at the vice president (inclusive) level or below that pass the probation are required to participate in the monthly evaluation, while management of the Group are evaluated semiannually. All of our employees participated in the regular performance evaluation.

In addition to work management, supervisors at the section head level or above are required to discuss with the upper level supervisors about the monthly KPI on talent training and development in the beginning of every month. Through performance management, outstanding employees are given opportunities for promotion, competitive remuneration and career development, while employees with poor performance are given guidance and assistance.

Responsibility for Performance EvaluationOperation Responsible Unit Key Points

Daily Evaluation Responsible Supervisor

Record major daily work performance, expected achievement rate, and actual achievement rate on a monthly basis to maintain the objectivity and authenticity of the regular evaluation.

Regular EvaluationHuman Resources

Department

Human Resources Department in each plant provides the evaluation sheet and related data for responsible supervisors to carry out the personal performance evaluation on a regular basis.

To recognize employees’efforts and contributions, ITEQ distributes performance bonuses to employees in accordance with the Regulations Governing Employee Performance Bonuses when achieving the business objectives, production targets, and net profit after tax. In principle, the performance bonus is calculated based on the net profit after tax and distributed based on the targets achieved.

5.5 Community Participation5.5.1 Maintaining Good Neighborhood Relationship

Upholding the spirit of taking from the society and giving back to the society, ITEQ attaches great importance to good interaction with communities. Through donation or participation in community activities, we fulfill our care for communities and increase employees’ awareness of corporate citizenship.

‧ Community Cleaning Activity

As a member of the Earth, ITEQ has strived to promote environmental protection. On April 27, 2016, the Employee Welfare Committee called employees to clear garbage from the community. In the future, we will continue to take action to protect the environment and become a guardian of the Earth.


‧ Donations to Community Activities

ITEQ was relocated to Xinpu Township, Hsinchu County in 2014. To maintain good neighborhood with Xinpu Township, we employed the locals and made donations to local community activities. For example, in 2016, we continued to make a donation to the environmental protection and first aid promotion organized by Xinpu Township Environmental Protection Association and the environmental rehabilitation education held in the ecological purification pool, kitchen waste field, and civil farms in Dingzhuan Community; we also made a donation to Sanyuan Temple and the Community Development Association in Neili Community to help them promote community development.

‧ Continuous Care for Disadvantaged Groups

ITEQ continued to care for disadvantaged groups and children by encouraging them to work independently. In recent years, ITEQ has purchased the moon festival gift boxes from Children Are Us Foundation; in addition, the Employee Welfare Committee has donated NT$3,000/month to Taiwan Fund for Children and Families since 2012 to care for the welfare of disadvantaged children.

Children Are Us Foundation Moon Festival Gift Box


Comparison Table of GRI4.0 Index


General Standard DisclosuresGRI4.0 Description Page

Corresponding Chapter & Special Note

Strategy and Analysis

G4-1Statement from the most senior decision-maker of the organization

02 Message from Management

Organizational Profile

G4-3 Name of the organization 05 1.1 About ITEQ

G4-4 Primary brands, products and/or services 05 1.1 About ITEQ

G4-5 Location of the organization’s headquarters 05 1.1 About ITEQ

G4-6Number of countries where the organization operates, and names of countries where the organization has significant operations

05 1.1 About ITEQ

G4-7 Name of ownership and legal form 05 1.1 About ITEQ

G4-8 Markets served 05 1.1 About ITEQ

G4-9 Scale of the organization 05 1.1 About ITEQ

G4-10 Workforce information 29 5.1.1 Diverse Human Structure

G4-11Percentage of total employees covered by collective bargaining agreements

x N/A, as ITEQ does not set up a union.

G4-12 Organization’s supply chain 15 3.1.1Local Procurement

G4-13Significant changes during the reporting period regarding the organization’s size structure, ownership, or its supply chain

x No major changes in the reporting period

G4-14Report whether and how the precautionary approach or principle is addressed by the organization

24 4.2.2 Emergency Response Plan

G4-15List externally developed economic, environmental and social charters, principles, or other initiatives to which the organization subscribes or which it endorses.

05 1.1 About ITEQ

G4-16List memberships of association and national or international advocacy organizations

05 1.1 About ITEQ

Identified Material Aspects and Boundaries

G4-17List all entities included in the organization’s consolidated financial statements or equivalent documents

0105

Report Contents1.1 About ITEQ

G4-18

Explain the process for defining the report content and the Aspect Boundaries and how the organization has implemented the Reporting Principles for Defining Report Content

13 2.1.2 Identifying Cirtical Issues

G4-19Material Aspects identified in the process for defining report content


GRI4.0 Description PageCorresponding Chapter & Special

Note

G4-20For each Cirtical Aspect, report the Aspect Boundary within the organization


G4-21For each Cirtical Aspect, report the Aspect Boundary outside the organization

12 2.1.2 Identifying Cirticall Issues

G4-22Report the effect of any restatements of information provided in previous reports and the reasons for such restatements

xN/A, as this Report is the first CSR Report of ITEQ.

G4-23Report significant changes from previous reporting periods in Scope and Aspect Boundaries

xN/A, as this Report is the first CSR Report of ITEQ.

Stakeholder Engagement

G4-24List of stakeholder groups engaged by the organization

12 2.1.1Communication with Stakeholders

G4-25Basis for identification and selection of stakeholders with whom to engage


G4-26 Organization’s approach to stakeholder engagement 12 2.1.1Communication with Stakeholders

G4-27Key topics and concerns that have been raised through stakeholder engagement


Report Profile

G4-28 Reporting period for information provided 01 Report Contents

G4-29 Date of most recent previous report 01 Report Contents

G4-30 Reporting cycle 01 Report Contents

G4-31Contact point for questions regarding the report or its content

01 Report Contents

G4-32Report the‘in accordance’option the organization has chosen, GRI Content Index for the chosen option, and reference to the External Assurance Report

01 Report Contents

G4-33Organization’s policy and current practice with regard to seeking external assurance for the report

01 Report Contents

Governance

G4-34Governance structure of the organization, including committees of the highest governance body

0708

1.3.1 A stable management structure1.3.3 CSR Management

Ethics and Integrity

G4-56Describe the organization’s values, principles, standards and norms of behavior such as codes of conduct and codes of ethics

06

07

1.2.1 Innovation of Ideas, Service in Good Faith1.3.1 A stable management structure

G4-58

Report the internal and external mechanisms for reporting concerns about unethical or unlawful behavior, and matters related to organizational integrity



Specific Standard Disclosures *Material Aspect

Aspect DMA and Indicator PageCorresponding Chapter & Special

Note

*Economic Performance

DMADisclosure on management approach

09 1.4.1 Management Performance Policies

G4-EC1Direct economic value generated and distributed

09 1.4.1 Management Performance Policies

G4-EC2

Financial implications and other risks and opportunities for the organization’s activities due to climate change

111.5.1 The risks and challenges of climate change、4.1 Climate Change and Energy Management

G4-EC4Financial assistance received from government

09 1.4.2 Government Financial Subsidy

*Procurement Practices


15 3.1.1 Local Procurement

G4-EC9Proportion of spending on local suppliers at significant locations of operation


Materials G4-EN1Materials used by weight or volume


Energy

G4-EN3Energy consumption within the organization

224.1.2Energy Consumption and GHG Emissions

G4-EN5 Energy intensity 224.1.2Energy Consumption and GHG Emissions

G4-EN6 Reduction of energy consumption 234.1.3 Measures for Energy Conservation and Carbon Reduction

Water

G4-EN8 Total withdrawal by source 28 4.3.4 Wastewater Emissions

G4-EN10Percentage and total volume of water recycled and reused

28 4.3.4 Wastewater Emissions

*Emissions


21

25

4.1 Climate Change and Energy Management4.3 Pollution and Emission Management

G4-EN15Direct greenhouse gas emissions (scope 1)


G4-EN16Energy indirect greenhouse gas emissions (scope 2)


G4-EN19Reduction of greenhouse gas emissions

21 4.1.1 Management Policies and Objectives

G4-EN21NOx, SOx and other significant air emissions

28 4.3.2 Air Pollution Emissions


Note

*Effluents and Waste


24

25

4.2 Chemical Management

4.3 Pollution and Emission Management

G4-EN22Total water discharge by quality and destination


G4-EN23Total water discharge by quality and destination

27 4.3.3 Waste Generation

G4-EN24Total number and volume of significant spills

24 4.2.1 Management Policies

G4-EN26

Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the organization’s discharges of water and runoff


Products and Services

G4-EN27Reduce of impact mitigation of environmental impacts of products and services

1017

1.4.3 Technology Excellence3.1.3 Control of Hazardous Substances

*Compliance


25 4.3 Pollution and Emission Management

G4-EN29

Significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations

11 1.5.2 Legal Compliance

Transportation G4-EN30

Significant environmental impacts of transporting products and other goods and materials for the organization’s operations, and transporting members of the workforce

26 4.3.2 Air Pollution Emissions

Overall G4-EN31Total environmental protection expenditures and investments by type

284.4.1 Expenditure and Investment in Environmental Protection

*Supplier nvironmental Assessment


16 3.1.2 Supplier CSR Risk Management

G4-EN32Percentage of new suppliers that were screened by environmental criteria


G4-EN33Significant actual and potential negative environmental impacts in the supply chain and actions




Note

Environmental Grievance Mechanisms

G4-EN34

Number of grievances about environmental impacts filed, addressed, and resolved through formal grievance mechanisms

24 4.4.2 Communication

*Employment


29 5.1.1 Diverse Human Structure

G4-LA2

Benefits provided to full-time employees that are not provided to temporary or part-time employees, by significant locations of operation

30 5.2.1 Benefits and Remuneration

G4-LA3Return to work and retention rates after parental leave, by gender


Occupational Health and Safety

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

33 5.3.1 Safe Workplace

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

33 5.3.1 Safe Workplace

G4-LA8Health and safety topics covered in formal agreements with trade unions

x N/A, as ITEQ does not set up a union.

*Training and Education


35 5.4 Training and Promotion

G4-LA9Average hours of training per year per employee by gender, and by employee category

35 5.4.1 Training and Promotion

G4-LA11

Percentage of employees receiving regular performance and career development reviews, by gender, and by employee category

36 5.4.2 Performance Management

Diversity and Equal Opportunity

G4-LA12

Composition of governance bodies and breakdown of employees per employee category, according to gender, age group, minority group membership, and other indications of diversity



Note

Equal Remuneration for Women and Men

G4-LA13

Ratio of basic salary and remuneration of women to men by employee category, by significant locations of operation


*Supplier Assessment for Labor Practices



G4-LA14Percentage of new suppliers that were screened by labor practices criteria


G4-LA15

Significant actual and potential negative impacts for labor practices in the supply chain and actions taken


Labor Practices Grievance Mechanisms

G4-LA16

Number of grievances about labor practices filed, addressed, and resolved through formal grievance mechanisms

32 5.2.2 Labor/Management Communication

Non-discrimination

G4-HR3

Number of grievances about labor practices filed, addressed, and resolved through formal grievance mechanisms

295.1.1 Diverse Human StructureNo discrimination occurred in 2016.

Child Labor G4-HR5

Operations and suppliers identified as having significant risk for incidents of child labor, and measures taken to contribute to the effective abolition of child labor


Forced or Compulsory Labor

G4-HR6

Operations and suppliers identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of all forms of forced or compulsory labor


*Supplier Human Rights Assessment



G4-HR10Percentage of new suppliers that were screened by human rights criteria


G4-HR11

Significant actual and potential negative human rights impacts in the supply chain and actions taken




Note

Local Communities

G4-SO1

Percentage of operations with implemented local community engagement, impact assessments and development programs

37 5.5.1 Maintaining Good Neighborhood

Anti-corruption

G4-SO3

Total number and percentage of operations assessed for risks related to corruption and the significant risks identified


G4-SO4Communication and training on anti-corruption policies and procedures


G4-SO5Confirmed incidents of corruption and actions taken


*Compliance



G4-SO8

Significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations


Supplier Assessment for Impacts on Society



G4- SO9Percentage of new suppliers that were screened by criteria for impacts on society


G4- SO10Significant actual and potential negative impacts on society in the supply chain and actions taken


*Customer Health and Safety


17 3.1.3 Control of Hazardous Substances

G4-PR1

Percentage of significant product and service categories for which health and safety impacts are assessed for improvement


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 type of outcomes



Note

*Product and Service Labeling



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


G4-PR4

Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes


G4-PR5Results of surveys measuring consumer satisfaction

19 3.2.1 Customer Satisfaction

*Marketing mmunications


19 3.2 Customer Service and Management

G4-PR6Sale of banned or disputed products

19 3.2 Customer Service and Management

Customer Privacy G4-PR8

Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data

203.2.2 Customer Complaint Handling and Confidential Information Protection

*Compliance G4-PR9

Significant fines for non-compliance with laws and regulations concerning the provision and use of products and services

1117

1.5.2 Legal Compliance3.1.3 Control of Hazardous Substances

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