FENC engages with stakeholders to determine material topics each year, establishes management approaches and effectiveness evaluating mechanisms, and designates authority to respond to stakeholders.
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FENC integrated materiality assessment results in the enterprise risk management (ERM) process. Please refer to “Sustainable Risk Control” for details on material risk and response.
Green Products
Significance and Purpose of Management for FENC
To respond to the risks and opportunities posed by climate change while helping brand customers fulfill their green commitments, a total green transformation has begun at FENC. The Company revolutionized the product lineups with climate-mitigating features as in the eco-friendly series to foster sustainable development.
Management Approaches and Effectiveness Evaluation Mechanisms
Focus on recycle, replace and reduce as well as develop eco-friendly products.
Obtain green product labels and certifications.
Authority
Petrochemical Business
Polyester Business
Textile Business
Environmental Management
Significance and Purpose of Management for FENC
FENC values all beings on Earth. With a strong commitment to protecting natural habitats and resources from pollution, the Company has been introducing innovative products that are made of recycled waste from the land and ocean. The objective is to protect natural resources, ensure biodiversity and safeguard environmental sustainability. Its corporate sustainability disclosure covers data on air pollution, waste materials and leakage incidents, as well as measures for prevention and control, targets setting, implementation and management.
Management Approaches and Effectiveness Evaluation Mechanisms
Establish air pollution and waste reduction targets.
Introduce innovative production and facilities.
Conduct environmental impact analysis prior to plant construction.
Authority
Energy Task Force
All production sites
Climate Strategy and Low Carbon Transition
Significance and Purpose of Management for FENC
FENC evaluates the risks and opportunities brought by climate change and responds with concrete strategies. The Company implements a broad range of projects aiming to avoid GHG emissions. By forging alliances with its global partners, the Company strives to mitigate global warming. Disclosures on GHG management performance include emissions; reduction targets and progress; renewable energy use and implementation; carbon trading; regulatory compliance.
Management Approaches and Effectiveness Evaluation Mechanisms
Conduct regular evaluation of climate-related financial impacts.
Establish GHG reduction targets, formulate strategies and track project performance.
Continue to expand the scope and category of GHG inventory.
Obtain international certifications such as ISO 14064-1.
Introduce innovative low-carbon production facility.
Replace fossil fuels with low-carbon alternatives.
Increase the use of renewable energy.
Research and develop green products.
Authority
Energy Task Force
All production sites
Energy and Resource Management
Significance and Purpose of Management for FENC
FENC believes that natural resources are meant to be shared among all humanity, hence regarding energy and resource efficiency as the means to prevent resource depletion. FENC monitors the management approaches, reduction targets, strategies and implementation on the consumption of energy, water and raw materials. All practices are carried out in accordance with regulatory requirements with regular tracking on performance in areas such as energy and water efficiency.
Management Approaches and Effectiveness Evaluation Mechanisms
Establish targets for reducing energy and resource use.
Appropriate budget and establish intercompany authority.
Implement reduction projects and regular performance tracking.
Obtain international certifications such as ISO 14001 and ISO 50001.
Authority
Energy Task Force
All production sites
Product Accountability and Life Cycle Assessment
Significance and Purpose of Management for FENC
FENC supplies to major international brands worldwide. With multiple production sites offering a wide spectrum of products, FENC satisfies customers with products of the highest quality.
Management Approaches and Effectiveness Evaluation Mechanisms
Ensure product certification and compliance with international standards.
Conduct life cycle assessments to understand potential environmental impacts posed by FENC products and mitigate such impacts through improvement measures.
Establish a management mechanism governing materials and applicable issues to ensure full product compliance.
Authority
Petrochemical Business
Polyester Business
Textile Business
Occupational Safety and Health
Significance and Purpose of Management for FENC
We strive for reducing workplace risks to protect the health and safety of workers (employees and contractors). Our goals are to achieve zero occupational injury and incident, minimizing the impacts of business operations on local communities and preventing any accidents caused by inadequate management.
Management Approaches and Effectiveness Evaluation Mechanisms
Establish Occupational Safety and Health Committee.
Identify, evaluate and control risks at workplace or in operational procedure.
Enhance the management of machinery, equipment and facilities.
Provide personal protective equipment.
Adopt effective management measures regarding the procurement, use and storage of chemicals.
Arrange regular health checkups for workers and conduct health promotion and management projects.
Conduct investigation, statistical analysis and measures regarding occupational injuries.
Require that suppliers comply with FENC safety and health standards and provide applicable training.
Authority
Presidents of Petrochemical, Polyester and Textile Business
Labor Safety and Health Department
Safety and health units at all business sites
Operational Performance and Strategies
Significance and Purpose of Management for FENC
Aiming for sustainability, FENC takes steady strides toward refining industry strategies. We maintain our industry leading status, spearhead industry growth and promote economic development.
Management Approaches and Effectiveness Evaluation Mechanisms
Continue to expand production capacity and establish a diverse production base and products.
Regularly conduct management review meetings, track business performance, and require improvements from applicable units.
Conduct quarterly Board Meetings to ensure the continuation and adequacy of strategic directions.
Authority
Presidents of Corporate Management
Presidents of Petrochemical Business
Presidents of Polyester Business
Presidents of Textile Business
Production and Product Innovation
Significance and Purpose of Management for FENC
Innovation is the core value that has been guiding FENC. With tremendous R&D momentum, we develop forward-looking products and transition into smart production and product services, making sustainability a reality through innovation, and generating green opportunities with circular economy.
Management Approaches and Effectiveness Evaluation Mechanisms
Establish R&D Center and continue to infuse resources into the research and development of innovative products and production.
Generate business opportunities through differentiation, value-adding and advantage in green products.
Authority
Production Units
R&D Center
Corporate Sustainability
Significance and Purpose of Management for FENC
In the spirit of sustainable development, FENC creates diverse values for stakeholders and aspires to set the paradigm of the sustainable corporation through non-stop refinement in the perpetual pursuit of perfection.
Management Approaches and Effectiveness Evaluation Mechanisms
Establish the Sustainability Committee at the Board level and hold a minimum of one annual committee meeting. Meeting resolutions are presented to the Board by the convener of the Sustainability Committee.
Establish the Sustainability Policy and FENC Sustainability Strategic Blueprint to implement various sustainable projects and report to the Board.
Take part in domestic and international sustainability evaluation, forums and conferences, interact with stakeholders, and review and modify directions for corporate sustainability.
Authority
Sustainability Implementation Committee
Corporate Sustainable Image
Significance and Purpose of Management for FENC
Corporate sustainable image is the company's intangible assets. One of the main key factors for a company to succeed is to demonstrate values by shaping a high-quality corporate image both externally and internally.
Management Approaches and Effectiveness Evaluation Mechanisms
Master external environmental changes, understand industry trends and movements.
Shape a corporate culture that conforms to the founding motto and corporate mission.
Maintain smooth and harmonious communication with external stakeholders to demonstrate corporate credibility.
Strengthen internal contact among employees, enhance organizational transparency and create a good working atmosphere.
Authority
Corporate Management
Petrochemical Business
Polyester Business
Textile Business
Risk Management
Significance and Purpose of Management for FENC
Identify risk factors posing a major impact on corporate activities and establish an assessment approach or improvement measures to reduce operational risks and avoid financial loss or damage to reputation.
Management Approaches and Effectiveness Evaluation Mechanisms
Establish Risk Management Policies.
Establish a risk control system to make dynamic adjustments and optimization and ensure system effectiveness.
Implement staff training to increase risk awareness.
Conduct monthly Risk Management Meetings to monitor risk indicators and regulatory compliance.
Regularly conduct plant risk ranking projects to reduce operational risks.
Conduct multiple monthly meetings to ensure management of and focus on risk issues from the highest governing entity.
Authority
Corporate Management
FENC sites
Corporate Governance
Significance and Purpose of Management for FENC
With integrity as the highest guiding principle, FENC constructs a sound framework to balance corporate governance and stakeholders’ interests and protect stakeholders’ rights by strengthening corporate performance and management.
Management Approaches and Effectiveness Evaluation Mechanisms
Designate corporate governance staff and Corporate Governance Task Force to implement tasks targeting business integrity, regulatory compliance, rules of procedures, and public information.
Establish rules and regulations governing Board Meetings and conduct annual self-evaluations.
Incorporate external Corporate Governance Evaluation and internal control system to evaluate the effectiveness of operational procedures.
Authority
Corporate Governance Officer
Corporate Governance Task Force
Sustainable Community
Significance and Purpose of Management for FENC
FERD holds a strong conviction in sustainable management. All operations, which span from land planning and development to real estate management are approached with environmental protection and low carbon as the ultimate objective. By leveraging advanced technology, FERD is on track to create a smart and green park campus that fosters sustainable development to strike a dynamic balance between the mankind and environment.
Management Approaches and Effectiveness Evaluation Mechanisms
Enhance GHG inventory, management and reduction.
Embody green building concepts in new constructions and aim for obtaining green building labels.
Expand the channels and formats of stakeholder engagement.
Authority
FERD
Sustainable Supply Chain Management
Significance and Purpose of Management for FENC
FENC forms partnerships with the supply chain to ensure that products and services provided by suppliers meet quality, environmental and labor rights requirements. With collaborative efforts, we achieve sustainable supply chain development as a response to customers’ sustainability goals.
Management Approaches and Effectiveness Evaluation Mechanisms
Request the signing of Supplier Corporate Social Responsibility Commitment Statement from suppliers.
Significant suppliers should pass the supplier ESG survey assessment.
Monitor and supervise supplier conducts and conditions through open communication and regular meetings.
Evaluate environmental, labor, human rights and social impacts from suppliers and may provide assistance or terminate contracts depending on the severity.
Authority
FEG Purchasing Department
Procurement departments at business sites
Raw material purchasing units
Customer Relations Management
Significance and Purpose of Management for FENC
We establish committed dialogues with customers to help them achieve sustainability goals, and maintain rapport by providing diverse and innovative products with quality and the best after-sales service, building the reputation as a corporation that fosters both revenues and sustainability.
Management Approaches and Effectiveness Evaluation Mechanisms
Establish Regulations Governing Customer Relationship Management as the principle guiding customer relations.
Actively participate in various exhibitions, showcase the latest products and record exhibition performance ( including customer data, signed order quantities and business development status ) .
Managers of business units are to monitor the interaction between sales and customers and conduct customer satisfaction surveys to maintain customer orders.
Authority
Petrochemical Business
Polyester Business
Textile Business
Digital Resilience
Significance and Purpose of Management for FENC
With the potential of posing direct influence on business performance, customer trust and corporate reputation, information security is an indispensable element in corporate operation. FENC should adopt proactive and aggressive approaches for effective information security management and minimize the impact caused by cybersecurity incidents.
Management Approaches and Effectiveness Evaluation Mechanisms
Develop information security policies.
Establish a robust information security management system (ISMS).
Establish information security management mechanisms and standards that govern all aspects, including the organization, staff, physical security, technology and compliance.
Conduct training to improve the awareness of cybersecurity risks among employees.
Track all information security indicators at FENC and compliance with the Supply Chain Information Security Agreement among its supply chain partners.
Report to the Board regularly to ensure the supervision and management of risk issues by the highest governing entity.
Authority
Information Security Department
Production and Operation Sites
Land Resources Management
Significance and Purpose of Management for FENC
To revitalize and utilize its properties throughout Taiwan, FENC entrusts FERD with affairs in real estate development and management. Through integrated planning by professional managers, the Company continues to experience steady growth in its real estate business and asset performance.
Management Approaches and Effectiveness Evaluation Mechanisms
Align property planning with the latest regulations and market demand.
Procure green building materials and construction methods that minimize pollution.
Establish standard operating procedures with tracking mechanisms for the construction environment and process.
Authority
FERD
Workplace Diversity and Inclusion
Significance and Purpose of Management for FENC
At FENC, labor rights take precedence. The Company shares with employees the fruit of their own labor and regards their physical and mental health as a priority. Additionally, FENC is integrating diversity, equity and inclusion (DEI) into its corporate DNA.
Management Approaches and Effectiveness Evaluation Mechanisms
Conduct regular analysis on market salaries for payroll management and examine the payroll structure to ensure that competitive salaries are offered under the non-discriminatory principle.
Create the global talent pool, examine factors behind the resignation of high-potential talents and reduce turnover costs.
Continue with employee satisfaction assessment, enhance areas in need of improvements and provide feedback.
Stay informed of changes in local labor regulations and make immediate adjustments to corresponding Company policies.
Construct a comprehensive human rights management framework to ensure 100% coverage for human rights training.
Authority
Human Resources Department
Human resources department at each Business
Highest ranking manager at each Business
Employee Career Planning
Significance and Purpose of Management for FENC
FENC cultivates job competency aligned with strategic needs with systems that offer diverse training and platforms to establish an extensive talent pool.
Management Approaches and Effectiveness Evaluation Mechanisms
Adopt project-specific management approaches and evaluate the results with the Kirkpatrick Model.
Level 1 - Reaction: Assess satisfaction towards training programs with in-class evaluation and after-class satisfaction survey.
Level 2 - Learning: Validate training effectiveness with tests, work application reports, summary reports, etc.
Level 3 - Behavior : Review the application of acquired knowledge and skills through action plan, follow-up survey from supervisors, individual development plan (IDP), etc.
Level 4 - Results: Examine the effects of behavioral changes on performance through individual or organizational performance management appraisals.
Authority
Human Resources Development Center
Human resources department at each Business
Stakeholder Dialogue
Significance and Purpose of Management for FENC
By constructing a comprehensive communication channel, FENC listens to the opinions of stakeholders to ensure that its business strategy and future development meet the expectations of stakeholders.
Management Approaches and Effectiveness Evaluation Mechanisms
Build communication channels for stakeholders to ensure smooth communications.
Prompt report important stakeholders' communication contents to ensure that important information is conveyed.
Periodically evaluate the communication process mechanism to improve the communication quality of stakeholders.
Annual report to the board of directors of the previous year's stakeholder communication results.
