Policy and Organization

Sustainable development is ingrained in CTCI's DNA. The Group has established a CSR Committee as early as 2008 and has defined its sustainable development policies, which are dedicated to strengthen the organizational structure, realize the vision of green engineering, and assume our duties as a corporate citizen. To enhance the level of sustainable governance, a functional committee called the "Sustainable Development Committee" was established under the Board of Directors in 2020. To further demonstrate CTCI's ambition for sustainability and net zero, it was renamed the "ESG & Net Zero Committee" in 2021. This committee is responsible for formulating sustainable and net zero policies, setting goals, strategies, and execution plans, as well as reviewing, monitoring, and revising the effectiveness of the implementation, and regularly reporting to the Board of Directors. The committee meets at least once a year and may convene meetings as needed. The regular meeting for 2023 was held on December 14th, with Independent Director Chien-Chung Li as the convener and Directors Yancey Hai and Michael Yang as commissioner. The Sustainability & Net Zero Office presented an ESG progress report. Key agenda items for the year included: (1) identify management methods for material issues and develop medium-term to long-term response action plans; (2) formulating sustainable goals and policies, such as disclosing the schedule and progress of greenhouse gas inventory, reduction pathway reports, TCFD climate-related risk and opportunity assessments, and TNFD natural-related impact and risk assessments; and (3) supervise the implementation outcome and evaluation of sustainable operations, such as stakeholder communication, green engineering, and sustainable supply chain management.

Terms of reference of the ESG & Net Zero Committee

Terms of reference of the ESG & Net Zero Committee
The formulation of the company's policy on sustainable and net zero emission development.
The company's sustainable development includes sustainable governance, integrity management, environmental and social objectives, and strategy and implementation plan development.
Review, track and revise the implementation and effectiveness of the company's sustainable development & net zero emission, and report to the Board of Directors on a regular basis.
Address the concerns of various stakeholders and oversee the communication plans. Stakeholders include inventors, customers, suppliers, employees, the government, non-profit organizations, communities, and the media.

At the Group level, a dedicated Chief Sustainability Officer and sustainable development unit—the Sustainability and Net Zero Office, supervised by the chairman—are established. The Sustainability and Net Zero Office is responsible for formulating the Group's sustainability and net-zero strategies, action plans, and implementation initiatives. It collaborates with ESG & Net Zero task force from business units to jointly advance efforts in environmental protection, social participation, and corporate governance. The office oversees five key areas of work and responsibilities, including policies, systems, engagement, disclosure, and progress tracking. These are regularly monitored and assessed for effectiveness. The Chief Sustainability Officer reports the outcomes to the Group chairman at the monthly Group Sustainability and Net Zero meeting to ensure continuous tracking and improvement.

The sustainability superintendent (Chairman) and Chief Sustainability Officer present the overall sustainable development strategy and implementation outcomes to the Board of Directors at least once a year. In 2023, there were six Board of Directors meetings, four of which included ESG topics on the agenda, and the total number of reports to the Board of Directors was made. Seven key sustainability issues were reported to the Bored, including greenhouse gas inventory, Supply Chain Sustainability Management, Climate-Related Financial Disclosures (TCFD), health and safety environment, risk management (including information security), revision to sustainability-related management practices, and sustainability report outcomes. After the briefing sessions, the Board reviews the execution progress, provides necessary guidance as needed, and urges adjustments to ensure alignment with the Company’s sustainable development strategy.

CTCI ESG policy statement

Fulfilling corporate social responsibilities with due faith has always been a target of this company's operations. Apart from pursuing maximum profits for CTCI’s shareholders, the Company also aims to attend to the rights of the stakeholders, conforms to the ethical codes, and mitigates climate change impact by promoting energy saving and carbon reduction. Through these actions, CTCI hopes that it can help create a society that is just and fair jointly with the stakeholders, as well as a sustainable living environment. Based on such visions, CTCI tries to promote ESG through three aspects, which are "Operations and Governance," "Environmental Protection," and "Social Participation." This is how CTCI commits to strengthen organizational structure, realize the vision of green engineering, and assume the duties as a corporate citizen.