ESG Issues Risk Evaluation

EDT / Risk Management / ESG Issues Risk Evaluation

Risk Assessment of Material Issues

Corporate governance structure

EDT’s business base was mainly the operational headquarters located in Kaohsiung, Taiwan. The subsidiaries, include Dong Guan Emerging Display Limited, Emerging Display Technologies Corp., U.S.A., EDT-Europe ApS, Emerging Display Technologies Korea, and EDT-Japan Corp., were also incorporated into the risk assessment boundary. However, considering the operational scale of each base and the overall impact on EDT’s operations, only Dong Guan Emerging Display Limited (Dongguan factory) was disclosed in the scope of “Sustainability Report”. 

 

According to the materiality principle of the “Sustainability Report”, our Sustainable Development Committee conducts analyses and communicates with internal and external stakeholders. Through the review of domestic and foreign research reports, literature and the integration of evaluation data from various departments and subsidiaries, it evaluates the material ESG issues and formulates effective identifications, measurement, evaluation, supervision, and control of risk management policies. It also takes specific action plans in order to reduce the impact of related risks. 

 

After conducting a risk assessment of environmental, social and corporate governance issues related to EDT’s operations, EDT has formulated the relevant risk management policies as follows: 

Major issuesRisk assessment itemsRisk management departmentRisk descriptionRisk management policies
Major issuesRisk assessment itemsRisk management departmentRisk descriptionRisk management policies
EnvironmentClimate change and environmentIndustrial Safety & Business Planning / ProcurementEnvironmental pollution or energy waste
  • Reduce greenhouses gas and lower energy usage continuously.
  • Has set up the IECQ QC080000 hazardous substance management system, thus complying with laws and international specifications.
  • Use low-toxic materials to meet RoHS standards.
EnvironmentClimate change and environmentIndustrial Safety & Business PlanningOccurrence of climate disasters
  • Both “Emergency Response Management Measures” and “Disaster Recovery Plan Management Measures” are available to quickly respond to emergencies and effectively perform after-treatments. This move is expected to minimize personnel injuries, finance, and equipment losses at a lowest level.
  • An all-round emergency escape drill in each factory area is held once per year. Many occupational safety and health education training courses are also implemented to make employees become more familiar with emergency responses and enhance their post-disaster capabilities.
SocietyOccupational safetyIndustrial Safety & Business Planning / Administration / ProcurementUnsafe working conditions or endangered employee health
  • Certified for ISO45001: 2018 Occupational Safety and Health Management System.
  • The “Occupational Safety and Health Committee” is established with President & CEO serving as its chairman. At least once per quarter, this committee will discuss environmental safety and health issues, and map out relevant projects considerably.
  • Promote the “Responsible Business Alliance (RBA) Code of Conduct” to commit to the health and safety of employees.
  • Arrange safety and health training courses for both new staff and in-service employees, in an effort to increase the awareness of hazard prevention and bring down the occurrence of industrial safety accidents.
  • In addition to the regular employee health check every year, irregular training, and/or announcements are implemented to promote the awareness of employee health. On a regular basis, expertise doctors are stationed at the factory to offer health consultancies.
Corporate governanceLegal riskAudit Office / Finance / Legal Affairs & Market / Administration / Industrial Safety & Business Planning / Employee Welfare Committee Illegal punishment
  • Legal personnel to provide legal consultation and handling advice on internal systems, compliances with laws/regulations, commercial disputes, and intellectual property rights management.
  • A “Codes for Compliance with Laws/Regulations” is implemented so that the Company’s three business fields in production, sales, and management are complied with the Company’s operation-related laws and regulations.
  • Both “Antitrust and Fair Competition Principles” and “Procedures for Preventing Insider Trading” are formulated for employees to specifically regulate precautions in performing business and trading stocks of the Company.
Corporate governanceLegal riskLegal Affairs & MarketTransaction risk
  • The “Codes for the Use of Seals” is made to control the signing of various types of contracts and related risks, and stipulate the application, use, storage, and cancellation of seals to reduce overall legal risks of the Company.
Corporate governanceLegal riskAdministrationPersonal information leakage
  • The“Codes for Personal Data Protection” is formulated aiming to standardize the planning, implementation, operation, supervision, inspection, maintenance, and improvement of the personal information management system.
Corporate governanceLegal riskAudit OfficeImproper employee behaviors
  • Both “Ethical Management Principles” and “Codes for Ethical Management” are implemented to ensure the values of ethical corporate management, and prevent employees from engaging in improper behaviors, thus improving the entire corporate governance.
Corporate governanceCompany imageChairman’s OfficeBad company image
  • Build up a good crisis management and response mechanism during ordinary days, and in the very first time activate the response system needed to cope with any operational risks that may affect the Company’s image. The spokesperson speaks to the outside world in a unified manner, or clarifies false information through significant information platforms, as well as to maintain the Company’s image and communicate well with all stakeholders.