Words from President
Following the rapid growth in global sustainable investment in recent years, the ESG investment strategies are drawing increasing attention from investors while the non-financial information has been deemed as the key indicators for the organization culture, integrity transparency, and sustainable development of the enterprise. In a environment under drastic changes, enterprises with higher ESG rating will naturally have lower impact. Hence, the ESG factors will play the key role in valuating an enterprise.
KYEC upheld to the responsibility and mission of sustainable management over the years. Apart from responding to the 17 UN SDGs and complying with government laws and regulations, KYEC controls the ESG development trends and practice to fully commit in the promotion of ESG sustainable actions. Particularly, KYEC established the ESG task promotion team in 2021 to upfold the plan immediately and execute the key agenda drawing attention from the stakeholders. KYEC eventually devotes in the related project and has received considerable performance, including CDP, TCFD, human right management, and supply chain management. Additionally, KYEC formulates policies in compliance with the all elements of the latest RBA conduct standards and requires the suppliers to comply accordingly. Additionally, KYEC policy has been conforming to all criteria of the latest RBA Code of Conduct and requires the suppliers to conform accordingly.
KYEC establishes a complete and rigorous risk management operation for material risk matters. The Board of Directors is responsible for monitoring the risk management mechanism and control while reviewing the related regulations and studying material risk reports.
Environmental protection
The execution of processing safety management and systematic management cycles effectively the low-pollution emissions and the impact on the environment. In 2000 and 2016, KYEC has acquired the certification for the environmental and energy management system in ISO 14001 and ISO50001, followed by continuous certification. Additionally, the climate change related risks and opportunities undergo classification according to the TCFD risk and opportunity identification context, to examine the impacts faced by operations. KYEC is committed to reduce the negative impact on the environment caused by the operational activities. According to ISO 14064-1 inventory of GHG emission results, the carbon reduction measures are executed to effectively reduce the category I emission and the category II indirect emission caused by power use. KYEC is working towards 2050 Net Zero Emission Goal. With regards to energy, KYEC also plans to introduce the mid to long-term goal for renewable energy and will deploy the solar panels in the building of Tungluo Factory, scheduled for completion by 2023.
Social responsibility
KYEC has already been certified for ISO45001 occupational health and safety management system by holding regular firefighting drills and occupational safety education and training each year, and developing the emergency response and self-safety management capacity in employees. With regards to human right management policy, KYEC complies with regulatory requirement to establish excellent labor-management interaction, support public information transparency, build friendly workplace, promote balance between family life and work, and commit to comply RBA. KYEC also requires all suppliers to sign the “RBA Statement of Commitment.”
Corporate Governance
To implement corporate governance and improve Board of Directors functions, KYEC executed the 2022 Board of Directors performance appraisal pursuant to the “Board of Directors Performance Appraisal Regulations” of KYEC. The scope of appraisal includes the overall Board of Directors, individual members of Board of Directors and functional committees. The directors will be arranged for taking continuing education that year, and all directors have accumulated 35 hours in training. Additionally, the governance organization is established while the internal control mechanism is implemented to assure all personnel and operations of the Company comply with relevant laws and regulations. The functional committee members fully understand their own scope of responsibility and function who can bring the due function into full play in practice.
The development stage of corporate sustainability is making progress from the earlier philanthropy and charity business into the corporate competence, and then the current integrated system strategy. Moreover, the major international changes in recent years drive enterprises with increasing response to ESG laws and disclosure, which unquestionably is one major project for promotion. However, KYEC considers such demand as opportunity for systematic transition. KYEC not only strengths its control risk, enhance governance performance and strengthen the sustainability resilience but also internalize it as the innovative and growth strategy of the company. By listing the promotion of sustainable development as the foremost important issues, KYEC expects to lead the enterprise with performance and investment value through the affirmation of stakeholders.