In recent years, under demand of the international society, enterprises shall no longer aim solely for maximum profits for the company. As a responsible enterprise, the company shall take care of its social responsibility in business operation as well as to consider the welfare of the related interest parties.

 

TXC Corporation founded the Sustainable Development Committee (also known as the ESG Committee). It is responsible for setting management approach and short, mid and long term goals. It communicates and coordinates with the sustainable development promotion team to organize three teams functionally. It promotes the event and verification associated with corporate responsibility and sustainability. It cooperates with members of each center to complete all tasks planned in the annual plan.

 

Main stakeholders of TXC Corporation include employee, customer, investor, supplier, government agency and public interest group. To further understand the need and expectation of internal and external stakeholders of the Company, and maintain good interaction with all stakeholders, TXC Corporation collects issues all stakeholders care about through survey and identify three aspects, economy, society and environment.

 

The concerned issues, material issue response and channels for communication method with all stakeholders defined by the Company are explained in the following:

Material Topics			Secondary Topics
1	Product Quality/Technology Research and Development		6	Waste Management and Recycle	16	Waste Water Drainage and Control
			7	Customer Privacy	17	Labor-Employer Relationship
2	Operation and Financial Performance		8	Forced and Compulsory Labor	18	Training and Education
			9	Customer Satisfaction Survey	19	Child Labor
3	Occupational Safety and Health		10	Labor-Management Relationship	20	Non-discriminatory
			11	Green Product/Design Development	21	Green Supply Chain Management
4	Hazardous Substance Management		12	Air Pollutant Control	22	Water Resource Management
			13	Social Economic Regulatory Compliance
5	Sustainable Supply Chain Management		14	Product and Service Label
			15	Customer Health and Safety

 

Non-material Topic
23	Product Carbon Footprint	29	Raw Material Usage and Reclaimed Material	35	Environmental Accounting
24	Energy Management	30	Human Rights Assessment	36	Taxation Policy
25	Customer Service Management	31	Freedom of Association and Group Negotiation	37	Green Operation
26	Climate Change Mitigation and Adjustment	32	Industry Localization	38	Security Practice
27	Supplier Social Impact Assessment	33	Employee Diversity and Equal Opportunity	39	Indigenous Rights
28	Conflict Metal Management	34	Contractor Management	40	Social Participation

 

Material Topic Impact Boundary Concerned by Stakeholders

Material Issue	Corresponding GRI Topic	Impact Boundary			Response Chapter
		Company Operation	Customers	Suppliers
Product Quality/ Technology Research and Development	Economic Performance (201-1) Customer Health (416-2)	●	● TXC Corporation’s performance in the continuous optimization of products and technology innovation will affect customer loyalty and purchase intention	● The implementation of friendly product design concept will further affect the purchase of raw materials and supply chain management requirements	4.3 Customers
Operation and Financial Performance	Economic Performance (201-1)	●			2.1.3 Operation Performance
Occupational Safety and Health	Occupational Safety and Health (403-2)	●		● Suppliers’ sustainable performance and the cooperation relationship between TXC and suppliers not only affect the reputation indirectly but also introduce positive impact to the society	5.4Safety and Health Planning and Management
Hazardous Substance Management	Self-defined Topics	●	● Use of harmful substances in products will directly or indirectly cause impacts on customers using such products	○ Suppliers’ sustainable performance and the cooperation relationship between TXC and suppliers not only affect the reputation indirectly but also introduce positive impact to the society and environment	5.2.2 Specific Action and Performance of Green Products or Services / Pollution Control Management and Maintenance Outcome
Sustainable Supply Chain Management	Purchase Practice(204-1)	●	○ Suppliers’ sustainable performance will indirectly affect the customer relationship of TXC, and we cooperate closely with suppliers and aim to achieve customer satisfaction as the highest goal.	● Suppliers’ sustainable performance and the cooperation relationship between TXC and suppliers not only affect the reputation indirectly but also introduce positive impact to the society	4.4Suppliers

【●】Direct impact: the material topic has a direct impact on the boundary

【○】Indirect impact: the material topic indirectly causes impact on the boundary, or is associated with the boundary due to the business relationship.

 

Material Issue	I. Product Quality/Technology Research and Development
Why Is It Important	Product quality and technology continuous improvement are essential factors to the establishment of corporate sustainable operation, corporate reputation and corporate image.
Management Objective	Continue to provide various application products necessary for the frequency control elements used in the industries of information technology, communication, optoelectronics and auto industry and provide quality products with market competitiveness.
Policy	Continue to enhance the improvement in order to achieve the world-class quality, and cooperate with various audit system requirements, such as IATF16949, VDA 6.3 and customers’ rigorous specification, thereby achieving continuous improvement of quality. According to the market demands and marketing plans, plan the Company’s development technical strategies and product development direction, establish company's technology development strategies and technology map, thereby achieving the use of leading technologies in the development of products demanded by the market. Implement project management, shorten R&D schedule, flexibly handle customer demands, seize every business opportunity, continue to strengthen the R&D team, improve professional trainings and systemization of technical database, and head toward the goal of No. 1 R&D team in the world.
Objective	Seek zero risk in product and delivery, obtain customer trust.
2019Goal Achievement Status	In 2019, the on-going certification included the Quality Management system (ISO 9001) and Auto Industry Quality Management System (IATF 16949). In 2019, there were a total of 22 projects executed in relation to the quality improvement

 

Material Issue	II. Operation and Financial Performance
Why Is It Important	While facing external environmental changes and challenges, it is the Company's’ corporate business mission to continue to develop new products and to utilize innovation, to strength competitiveness, to reduce production cost, to commit in the value creation for shareholders and to fulfill social responsibility.
Management Objective	Strength competitive, improve performance, and incorporate environmental and social aspects into the consideration for financial performance, thereby creating higher values for shareholders.
Policy	Periodically convene shareholders’ meetings and investor conferences, provide transparent information. Convene various product production and sales meetings, product meetings of all factories, and establish annual sales plan and target.
Objective	Stable growth and profit earnings.
2019Goal Achievement Status	Ranked No. 1 giant manufacturer in the quartz industry in Taiwan. Ranked top 5 giant manufacturers in the quartz industry worldwide. 2019 revenue increased by 4.26% from last year.

 

Material Issue	III. Occupational Safety and Health
Why Is It Important	Corporate’s care of the safety and health of employees is the social responsibility required to be fulfilled by the Company, and healthy employees and safe environment are essential criteria for works.
Management Objective	Establish company employee’s safety awareness, and construct a working environment that meets the occupational safety criteria and is also healthy and comfortable.
Policy	The Company establishes an Occupational Safety and Health Committee, and meetings are convened quarterly to review work progress and to discuss environmental safety and health matters, in order to ensure the safety and health of the operating environment. Continue to improve the safety and health technologies of the Company’s facility site, to reduce overall operating risk and business loss, and qualify the “ISO 45001 Occupational Safety and Health System” such that the occupational safety and health related trainings in the facility site are also executed in accordance with relevant regulatory requirements. The facility site is provided with the Medical Office and there stationed physicians and professional nurses available to provide professional medical consultation service. Employee health examination is also organized periodically, and health information (including disease prevention))/seminars, etc. are organized irregularly.
Objective	Personnel with zero disaster, prevent occurrence of occupational diseases.
2019Goal Achievement Status	For “ISO 45001 Occupational Safety and Health Management” system standard, the system authentication was completed successfully in 2019. 2019 physical examination report results did not indicate any occurrence of occupational disease cases.

 

Material Issue	IV. Harmful Substance Management
Why Is It Important	Create green products, reduce hazards of production to human bodies and environment, and achieve sustainable operation.
Management Objective	Continue to reduce the impacts of production raw materials, production processes and wastes on the end consumers and natural environment, and maintain the natural resources for sustainable living.
Policy	Comply with the EU’s Restriction of Hazardous Substance for Electrical and Electronic Equipment RoHS 2.0 (2011/65/EU), (EU)2015/863, Waste Electrical and Electronic Equipment Directive WEEE (2012/19/EU), Perfluorooctane Sulfonic Acid Directive PFOS(2006/122/EC), (EU) No 757/2010, Registration, Evaluation, Authorization and Restriction of Chemicals REACH (EC)No 1907/2006 Directive requirements. Obtained IECQ QC 080000 harmful substance process management certification, and adopted green purchase activities as the basis for continuous provision of green products to users. To ensure product quality complying with green related environmental protection regulations, the Company strictly controlled the use of environmental management substances in the products and also requests suppliers’ products to comply with the Company’s regulations on the environmental management substances, in order to reduce impacts of products and services on the environment. To strengthen the management of supply chain on green products, the Company encourage suppliers to be equipped with basic ISO 9001 quality system and to also implement the IECQ QC 080000 harmful substance system, in order to implement the promotion of environmental management activities.
Objective	To ensure products comply with the Restriction of Hazardous Substance related regulations and customers’ harmful substance free control requirements.
2019 Goal Achievement Status	100% of products manufactured in 2019 comply with the Harmful Substance (HSF)/Green Product (GP) international environmental protection regulations.

 

Material Issue	V. Sustainable Supply Chain Management
Why Is It Important	Suppliers are important partners to the Company in the sustainable development, and through the cooperation method of mutual assistance for win-win, the Company seeks corporate sustainable operation and growth with suppliers jointly.
Management Objective	Improve supply chain quality and source stability, and strengthen the corporate sustainable development influence through value chain link and cooperation.
Policy	To ensure the thorough implementation of corporate social responsibility requirements and principles at our suppliers and partner ends, suppliers of the Company are required to sign and return the “Integrity Undertaking”, “Environment, Occupation, Safety and Health Status Survey Form”, “Industry Code of Conduct Undertaking”, “Green Product and Environmental Protection Declaration” and “Non-conflict Metal Declaration” in order to provide guidance on corporate social responsibility requirements to suppliers. Relevant departments of the Company conduct evaluation on suppliers periodically to ensure that all suppliers are able to meet the Company’s medium and long term planning for continuous development and to comply with relevant international standards, thereby maintaining long-term and quality cooperating partnership. In 2011, through the government’s integrated system guidance, the Company has established the “Authorized Economic Operator (AEO)” and “Supply Chain Safety Management System” (ISO 28000). In addition, through such establishment of supply chain safety system, customs clearance preferential offer is obtained and the substantial outcomes of improvement of service quality and performance are achieved, thereby satisfying customers’ safety demands on industrial value chain.
Objective	To ensure suppliers’ compliance with relevant requirements and policies of the Company such that there are no obvious or potential negative impacts on the environment, labor criteria, human rights and social aspects.
2019 Goal Achievement Status	After the verification of the 2019 supplier survey results, all results were found to comply with the system requirements of the Company.

The Corporate Social Responsibility Management Committee summarizes relevant outcome documents and data annually and reports the stakeholder engagement result and CSR discussion and recommendation in the board meeting for confirmation. The communication status with all stakeholders in 2019 was reported to the board of directors on December 29, 2020. The communication status and report content with all types of stakeholders in the most recent year are as follows:

Stakeholder	Communication Issue	Communication Method and Channel	Frequency	2019 Results
Employee	Remuneration and Welfare Employee Development Occupational Safety, Sanitary and Health Company Sustainability	Annual Employee Satisfaction Survey	Year	1 time in total
		Salary Survey	Irregular	Numerous times through recruitment collection and network information, etc.
		Mailbox and direct line to senior managers	Irregular	No complaint received
		Employee seminars	Irregular	Frequent convention
		Employee Suggestion Box	Irregular	1 time in total
		Improvement Proposal Mailbox	Irregular	29 cases in total
		Employee Welfare Meeting	Irregular	4 times in total
		Mid-year/Year-end review meeting	Semi-annually	2 times in total
		Department Meeting	Irregular	Frequent convention
		Laborer and Employer Meeting	Quarterly	4 times in total
		Environmental Safety and Health Committee Meeting	Quarterly	4 times in total
Customers	Product Quality Product Price Performance of Social Responsibility Customer Relationship Management	Customer Satisfaction Survey	Year	1 time in total
		Various customer questionnaires	Irregular	26 times in total
		Supplier Self-evaluation Questionnaire	Irregular	150 cases in total
		Company and Third Party Audit	Irregular	External Customer Audit: 20 companies (Quality /HSF system); third party certification audit: 6 times
		Telephone Communication	Irregular	Frequent communication
		Meetings convened by customers	Irregular	Frequent convention
Community Group	Communication Care Implement Environmental Safety Health Management Performance of Social Responsibility Company Sustainability	Visited neighborhood village chiefs during holidays	Year	Cooperated with 3 neighborhood villages at the surrounding of the Company
		Participated in the sponsorship for community disadvantaged groups	Irregular	Cooperated with 7 care institutions
		Sponsored community elementary and junior high schools	Irregular	Sponsored 4 elementary and junior high schools, and 99 people in total
		Company’s website provides detailed greenhouse gas, environmental and safety health policies as references for interested	Irregular	Website disclosure and publication of 2018 Greenhouse Gas Report
Suppliers	Supplier Evaluation Product Characteristics Order Continuity Financial Performance	For the topics on the requirements of “Supplier System Evaluation and Audit Form”, “Supplier GP System Evaluation Form”, “Greenhouse Gas Inventory Taking”, “Corporate Social Responsibility”, “Purchase and Contractor Safety and Health Regulations”, “Environment, Occupation, Safety and Health Status Survey Form”, training courses, questionnaire surveys and company website promotion are held irregularly for suppliers.	Irregular	105 suppliers completed the signing of the RBA agreement documents
Government and Legal Institution	Legal Compliance Environmental Protection Fulfill Tax Payment Obligation Policy Cooperation Level	Maintain proper interaction with all competent authorities	Irregular	Frequent interaction
		Receive and respond to official letters of public departments	Irregular	150 letters were received and responded
		Management Activities and Management Practice	Irregular	Sufficiently disclosed on website and annual report
		Training on attendance related regulations	Irregular	Total of 2,269 people participated in the training
		Performed legal searches to ensure legal compliance	Quarterly	4 times in total
Shareholders/Investors	Sustainable Development Strategy Regulatory Compliance Financial Performance Corporate Operation Governance Risk Management	Board of Directors	Quarterly	Convened 7 times of board meetings in total
		Shareholders’ Meeting	Quarterly	Convened 1 time
		Investor Conference	Irregular	Convened 8 times
		Monthly Revenue and Settlement Announcement	Monthly	12 times in total
		Financial Statements	Quarterly	4 times in total
		Investor section on Company’s website	Irregular	Website information updated 54 times
		Disclosure of Material Information on Market Observation Post System (MOPS)	Irregular	42 announcements released
		Participation in Corporate Governance Evaluation	Annually	October of each year to January of next year
Media	Corporate Operation Governance	Shareholders’ Meeting	Quarterly	Convened 1 time
		Investor Conference	Irregular	Convened 8 times
		External Communication Mailbox	Any time	Frequent interaction
		Newsletter Announcement	Irregular	Updated any time

 

The communication channel of the Company provided through the establishment of a general window, and place contact our (Administration Center Mr. Chen/AVP)