A Message from the Executive Officers
The pandemic continued into 2021. Everyone around the world was impacted on many levels, from economic activity to their lifestyles. Insufficient labor and materials, halts to logistics, inflation and other challenges came in a string of succession. Our capabilities to react and coordinate were put to good use. We reaped the reward of our solid links and strong partnerships with our suppliers and clients and witnessed an income of over a trillion. On top of that, our diversified business scope and extensive business locations throughout several countries are developing on human-based sustainability. The setup and operation of the Sustainability Committee follows TCFD and SASB as guidelines and ensures the disclosure of ESG information. This is a key step in connecting globally and running a sustainable corporation.
Solid Corporate Governance
Keeping the Company on the right track in terms of integrity, transparency and a good sense of responsibility requires honesty-based policies, good corporate governance and proper risk control mechanisms. We have in place a Remuneration Committee, Independent Directors, Audit Committee and Sustainability Committee, building a business environment that aligns with sustainable development. Our operation falls within the provisions of government laws and regulations and protects the interests of shareholders and stakeholders, all thanks to internal controls, risk management and internal auditing, as well as the support of our comprehensive corporate governance system, which helps navigate the Company in achieving better sustainability.
Compal has been preferred by investment companies for years. In 2021, we were honored with national and worldwide recognitions: the Top 6-20% among Taiwan listed companies in the TWSE 7th Corporate Governance Evaluation; TAISE's TCSA Platinum for our Corporate Sustainability Report; selected as a constituent stock of the FTSE4GOOD Index, FTSE4GOOD TIP Taiwan ESG Index, TWSE Taiwan High Compensation 100 Index and RA Taiwan Employment Creation 99 Index; Top 5 in the manufacturing industry in the Top 2000 by CW Magazine; and 64th in the Top 1000 Survey in Taiwan, Hong Kong and China by CW Magazine.
Employee Care and Wellbeing
Since Compal was founded, employees have been one of our priorities, especially during the pandemic. We support our people with a dedicated working environment and positive labor relationships, responding to the challenged employees faced in the pandemic and providing a safe environment where individuals can thrive, cultivate their skills and reach their full potential in a sustainable, powerful organization.
During the COVID-19 outbreak, we implemented a high level of preventive measures following government orders to assist and ensure a safe and healthy workplace. We initiated well-organized career education and superior remuneration packages, an EAP project and professional teams to support employees through the 83 family matters, workplace relationships, interpersonal situations and law-related cases in 2021. We also established various care and communication channels so we could appreciate and understand the needs of employees, introduce our employees to health promotion programs, special health promotion plans and a weekly doctor service so those who were at a high risk of CVD could be monitored, as well as other health promotion activities. Compal gave each employee who experienced childbirth a subsidy of NT66,000, totaling 251 subsidies in 2021, to address low birth rates, for which we won gold in the 1111 Job Bank 2021 Company of Happiness under the technology development category.
Action on Environmental Sustainability
Due to the environmental impact brought about by climate change, Compal has actively invested in green product design, plant energy-saving management, and measures to cope with the extreme climate. We brought the circular economy into product design, which includes a better choice of materials and responsible procedure for recycling and disassembling to boost our reuse efficiencies. At production terminals we seek means to reduce waste and maximize the use of renewable energy, establishing a zero-discharge goal as our long-term pursuit.
This year we engaged in a Carbon Disclosure Project (CDP) and was marked at management level through the climate change survey and water safety survey; we are happy to be a part of one of our clients' recycling projects for disposable 3C products. We also joined in on a project - Enterprise joint beach cleanup and fulfilled one of the SDGs 14 Life Below Water goals.
Supply Chain Management
As a member of the Responsible Business Alliance (RBA), Compal ensures good CSR throughout our operations by requiring supply chains to take responsibility for the environment, labor, management, moral and ethics, and health and safety regulations. We communicate with partner suppliers and request they to sign in the commitment and compliance with RBA standards, and the prohibition/non-support for/no use of conflict minerals declaration. During the online supplier meetings we review updates to global green product regulations, implementation key points, changes to RBA VAP v7.0, reiterate our stance on conflict minerals, and introduce our supplier management system and supply chain green environment. We had a total of 349 suppliers participanted in total in online meetings. Furthermore, 35 first-tier suppliers have completed the RBA code of conduct on site audit and their action plan for improvement is being monitored, and 1,014 suppliers have cleared following a conflict minerals survey; a completion rate of 100%.
Investment in the value of innovation
Compal products are presented to the world as innovative technology, thus we always uphold the spirit of "innovation, harmony, and transcendence" as our business philosophy, with continuous investment in innovative technologies and sustainable development of the Company. Our efforts in system innovation have successfully made production process more efficient, a pioneering move in the industry that has greatly reduced energy consumption, bringing us one step closer to the circular economy. We pour innovative thinking into Compal's DNA; the company encourages innovative proposals and hosts "Innovation Awards" to incorporate ideas and suggestions from employees for a win-win for both the Company and employees. Furthermore, we make good use of our internal R&D technology, based on AI, 5G and the cloud, to develop solutions and platforms for products in the automotive industry, healthcare, and other automation areas, and leverage innovative technology to enhance the wellbeing of people in the community. On the global stage, Compal has also taken part in international competitions. This year, Compal again won several honors from the "iF Design Award" in Germany and is ranked 6th in global corporate innovation competitiveness.
Corporate responsibility fulfillment
Supporting and working with the Chau-Ing Hsu Chauing Social Welfare Charity Foundation, our people put corporate social responsibility into action and extend our care to the minorities of society. To help fight the pandemic in Taiwan, Compal made a NT$100 million donation to Tsi-Chi for the purchase of COVID-19 vaccines. We also donated NT$1 million to Vietnam to help with medical resources. To ensure SDGs4 Quality Education, we funded the Newspaper Reading Project in Pingtung; the Technology and Innovation Education Plan in Taoyuan; FJU's(Fu Jen Catholic University) Kangaroo Project in remote areas, and WorldVision's Remote and Digital Education in Taitung remote areas, helping children with their schoolwork and education by offering them better quality popular science education. We further advocate the importance of physical exercise, especially for the health of people working in Neihu Science Park, so we organized the first Taipei Technology Cup - Run for our Earth, followed by Compal for Public Welfare, which includes donating blood and volunteering. We strive for positive change and return the favor to our society through the efforts of the Company, our employees and suppliers.
We will focus our development in the future in biotechnology, medicine, therapy and long-term care – another trillion-dollar industry. In addition to the growth of the business, we also care about profits. Together with our clients, we have implemented a series of new measures, management procedures and digitalization, automation and teamwork. We aim to lower costs, increase efficiency and gain in economic value while balancing our social responsibility so we are accountable to shareholders, clients and stakeholders along the path to sustainability.
Updated on July 22, 2022