遠東新世紀股份有限公司〈原遠東紡織〉,乃台灣規模最宏大、最多元化的紡織及相關產品製造者。本公司共分化纖、紡織、石化、土地開發與轉投資五大事業。

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Sustainable Governance

Sustainable Governance

Corporate sustainability is built upon robust governance. FENC pursues sustainable governance to create sustainable prosperity

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Sustainable Risk Control

Opportunity is a double-edged sword. With opportunities for corporate development, come risks. Such risks can only be offset through control mechanism in order for opportunities to become means of fulfilling sustainable management.

To reinforce corporate governance and establish sound risk control to reach corporate targets, the Board approved Risk Control Policy on November 12, 2020. The objective is to ensure sustainable management, reduce damages and enhance corporate profit. Risks and opportunities should be evaluated accordingly for all business conducts to identify, evaluate, monitor and control risks, keeping risks within manageable range to rationalize risks and benefits.

The Company shall report risk management results to the Board of Directors at least once every year. The risk management and implementation of 2021 has been reported in the Board meeting on November 11, 2021. 
Risk Management Policies

Structure of Risk Control Organization

FENC’s risk management organizational structure is divided into three levels. The relevant rights and responsibilities are stipulated in Risk Management Policies.

  1. Board of Directors
    The BOD is the highest decision-making unit of the risk management. Audit committee and Sustainability Committee monitors the corporate risk and ESG risk management policies and framework to ensure the effectiveness of risk management in accordance.
  2. Corporate Management
    Comprehensively review the overall risk management and formulate the relevant mechanisms.
    Hold various regular meetings monthly, review risk management related issues, monitor implementation and coordinated operation of risk management.
  3. Operating Business and Relevant Divisions
    Response team shall immediately report any risk event when emergency and material risk might impact the Company. Communicating with external and internal stakeholders ensures to comply with the laws and regulations and minimizes possible losses and damages. 
    Identify risk in the field of divisions, adjust for risk planning implement necessary process of risk management and report management status to Corporate Management on a regular basis.

 

The Principal Risk Control Mechanism and Implementation of 2021 

The Company’s risk control mechanism consists of regulatory compliance system, risk alert system, risk ranking project, which the Company offers the staff regular training to be risk awareness. Furthermore, risk control is implemented in conjunction with the internal audit system and is conducted through various monthly meetings, covering risk issues such as management and sales, industry management, environment sustainability and GHG reduction, etc.

  1. Regulatory Compliance System
    Since 2013, all units shall be self-assessed in compliance with regulations of the field to reduce legal risk every quarterly and the Legal Department shall conduct on-site inspection and submit the result to the Board of Directors.  
    In 2021, the Company’s priorities were investigating leaking heat transfer fluid which caused fire and spread of odorous pollutants in Hsinpu Chemical Fiber Plant, managing overseas subsidiary to complete PET anti-dumping investigations, assisting the listed companies under Far Eastern Group to arrange the AGMs which was postponed due to the COVID-19 pandemic, hosting keynote speeches regarding “Respond to risks of business operations related to the criminal law and environmental safety and health” and advocating the related regulations of Waste Disposal Act and Intellectual Property Act to employees.
  2. Risk Alert System
    In 2015, the risk alert system was established to track the corporate risk factors by Corporate Management on a regular basis. Through risk indicators management, each administrative unit identified abnormal indicators with corresponding measures, improvement and optimization plans. In 2021, the Company’s priorities were implementing necessary precautionary measures to decrease risk of COVID-19 transmission, managing the problem of the shipping container shortage, launching projects of credit rating improvements, continuously improving ESG rating and strengthening information security.
  3. Risk Ranking Project
    Since 2013, the Company implemented regular Risk Ranking Projects once every three year to control operational risks among production sites. In 2021, the Company and external consulting team planned to scale up the Risk Ranking Project for its fourth time in 2022, including 29 plants at its global locations in 8 major risk areas.
  4. Regular Meetings
    We conduct various regular meetings with the highest governing entity, covering risk issues such as management and sales; R&D; industry management; energy conservation and GHG reduction; human resources; sustainability development, which ensures proper focus and management from the highest governing entity.
     

FENC Regular Meetings

Environment Social Governance

Corresponding Issue

Important Meeting

Interval

Corresponding Issue

Highest Ranking Attendee

Board Meeting

Board Meeting

Quaterly

■ ● 

Chairman

Audit Committee

Quaterly

Independent Directors and Directors

Remuneration Committee

Semi-annual

Sustainability Committee

Annual

■ ● 

Themed Meeting

Management Meeting

Annual

■ 

Chairman

Human resources management and development

Semi-annual

● 

Special report on R&D

Annual

■ 

Seminar on industry strategies 

Semi-annual

Budget review

Annual

Environment sustainability and GHG reduction

Annual

Regular Meeting

Operation review meeting

Monthly

■ ● 

Sales Meeting

Semi-monthly

Risk management meeting

Monthly

■ ● 

President of Corporate Management

 

FENC Risk Management Principle and Processes
 

Six Principles

1. Considering the uncertainty of risk factors and collecting the best information to develop prioritized action plans.

2. Achieving optimal resource allocation and utilization.

3. Establishing necessary preventive mechanism and emergency action plans.

4. Constantly identifying and responding to changes.

5. Complying with laws and regulations.

6. Strengthening trust and communication with stakeholders

Seven Processes


Major Risks

FENC identifies potential risks and their sources for all departments.

  1. Financial Risk
    Including the volatility of local and foreign interest rates, currency exchange rates and credit risks, etc.
  2. Strategic and Operational Risk
    Including operations strategies, local and overseas market competitions, industry alliance, policy or regulation changes, etc.
  3. Information Security Risk
    Including but not limited to potential threats to the confidentiality, integrity, availability of the Company’s information asset due to any natural, man-made or technical factors.
  4. Environmental and Energy Risk
    Including the change of climate, natural resources, government energy and related financial and taxes policies, etc.
  5. ESG Risks
    ESG risks encompass risks induced by the environment, society and governance that are derived out of global corporate sustainability issues.
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