Note: The “Corporate Governance & Nomination Committee” of the Board of Directors was renamed as the “Sustainable Development & Nomination Committee” on May 23, 2024. The “Corporate Governance Promotion Committee” under the original “Corporate Governance & Nomination Committee” was renamed as “Sustainable Development Promotion Committee” and its functional structure was adjusted.
Sustainable Development Promotion Committee
Implementations in 2024
Reviewed new and revised Corporate Governance Evaluations indicators for 2024.
Tracked pending tasks for Board resolutions associated with corporate governance.
Reviewed the Corporation's operation and implementation status reports for corporate governance systems, sustainable development, and ethical management in 2024.
Reviewed annual plans and implementation status reports for the six major teams under the Sustainable Development Promotion Committee.
Reviewed proposals for revisions to the “Ethical Corporate Management Best Practice Principles” and the “Procedures for Ethical Management and Guidelines for Conduct.”
Reviewed the Corporation's legal compliance systems and implementation status reports.
Reviewed the Corporation's reports on plans for enhancing investor relations.
Appraised the Corporation's progress on preparations and implementations for corporate governance evaluations.
Convene one regular meeting each quarter (in principle) and convene special meetings at any time in response to the needs of special issues.
Reported sustainable development promotion implementations to the Board each year. Changes to the Committee and promotion frameworks were approved and acknowledged at the 14th meeting of the 10th Board on June 12, 2024.
Teams
Environmental Sustainability Team
Main Duties
Maintain the operation of the environmental management system.
Conduct the environmental inventory and verifications (including greenhouse gas, carbon footprint, water footprint, etc.).
Develop and implement the noise mitigation plans along the high-speed rail route.
Promote the renewal and improve energy-consuming equipment.
Assess the impacts of climate change and take relevant measures in accordance with the requirements of the Task Force on Climate-related Financial Disclosures (TCFD).
Advocate for environmental sustainability initiatives.
Implementations in 2024
Continued to pass ISO 14001:2015 Environmental Management System certificate renewal verifications (current certificate valid until September 2026).
Completed inventories of Corporation-wide greenhouse gas emissions and water footprints for Tainan Station, and obtained an ISO14064-1:2018 greenhouse gas verification statement and an ISO 14046:2014 water footprint verification statement in September and November, 2024, respectively.
Adhered to the “High Speed Rail Noise Improvement Plan” and “Noise & Vibration Petition Treatment for HSR During Operation,” and established the “High Speed Rail Noise Case Handling Process.” Received 15 public complaints related to noise and vibrations in 2024, one of which was a noise complaint from Zhongli District, Taoyuan City. The Corporation formulated a noise improvement plan which has been approved by competent authorities, and subsequent procedures are being implemented.
Gradually replaced energy-consuming traditional lights and air-conditioning equipment with energy-efficient LED lights and high-performance air-conditioning equipment, reducing electricity usage by 939,220 kWh in 2024.
Completed data compilation for climate risk impact assessment matrixes and quantitative financial impact analyses.
Implemented the “Environmental Sustainability Enhancement Actions” program and hosted two farmer-for-a-day and beach clean-up activities, bringing together people passionate about achieving environmental sustainability goals.
Teams
Sustainable Service Planning Team
Main Duties
Propose sustainable service goals according to the direction of the Corporation's sustainable development.
Formulate long-term strategies and action plans for the development of service sustainability.
Plan and submit annual strategies and plans of sustainable service development.
Promote sustainable service development events and projects.
Implementations in 2024
Implemented several programs over the year, including “Plastic Reduction for Train Service Products,” “Improvements for Station Passenger Service Facilities,” and “Improvements for Train Passenger Service Facilities.”
Established strategic service sustainability goals, work plans, implementation periods, and expected performance for the following year.
Teams
Employee Care Team
Main Duties
Plan and propose the strategies related to Employee Care Team.
Develop the sustainable development activities and projects related to labor security and friendly workplace.
Plan and implement the activities to improve the health of employees.
Work with relating to departments to accommodate sustainable development strategies in Company and Employee Care Team.
Implementations in 2024
Planned and hosted activities and lectures to improve employee mental and physical health, strengthen employee work-life balance, and build a friendly workplace.
Established sexual harassment prevention, unlawful infringement prevention, and elimination of human rights violations declarations and procedures according to law, and regularly planned and hosted relevant knowledge training for all colleagues to promote gender equality.
Teams
Social Integration Team
Main Duties
Formulate internal and external plans covering the three aspects of “Social Integration,” “Environmental Integration,” and “Cultural Integration”:
Social Integration: Start by organizing employees and charity activities for ethnic groups, diverse genders, and disadvantaged people while internally enhancing employees' competitiveness to promote harmonious labor-management relations and externally encouraging others to join us in making social contributions.
Environmental Integration: Build sustainable life cycles by using recycled materials to make souvenirs, and promote ecological restoration along the HSR line to achieve environmental sustainability.
Cultural Integration: With the spirit of strengthening the local cultural, host internal employee art appreciation activities, and support local art groups' performances and activities to enhance the depth and breadth of local culture.
Implementations in 2024
Hosted a total of 13 activities over the year, including the “High-Speed Educational Endowment Program,” “Winter Outreach Blood Drive,” “HSR Camps,” “HSR Family Day,” and “T-SPORT HSR Personnel Sports Activities.”
Developed a system to recycle plastic bottles and microwavable meal boxes at stations, generating “recycled plastic pellets” which were made into “eco-friendly yarn” used for producing operational personnel uniforms, eco-friendly shopping bags, eco-friendly hats, eco-friendly umbrellas, and eco-friendly ballpoint pens. The recycling rate for the first year was 8%, and carbon reduction amounts reached 24 tons. Additionally, we collaborated with raingo to produce eco-friendly HSR long umbrellas and promote a shared economy, thereby expanding our sustainability and recycling benefits.
Hosted 26 “THSR Arts Festival” activities and completed 97 local arts activities; these performances strengthened and expanded the public reach of local cultural activities.
Teams
Corporate Governance Team
Main Duties
Promote and implement corporate governance policies and measures.
Promote implementations of Corporate Governance Evaluation indicators and track progress.
Ensure accuracy and transparency of externally disclosed information.
Promote and track various assessment and verification matters associated with corporate governance indicators.
Implement subsequent response tasks after Corporate Governance Evaluation.
Implementations in 2024
Promoted related policies and measures based on Corporate Governance Evaluations indicators and requirements.
Tracked and promoted achievements of 11th Corporate Governance Evaluations indicators.
Hosted investor conferences every quarter to enhance investor relations.
Disclosed corporate information in accordance with regulations to ensure the accuracy and transparency of public information.
Formulated and implemented plans to incorporate IFRS Sustainability Disclosure Standards.
Teams
Ethical Management Team
Main Duties
Formulate codes of conduct for ethical corporate management in line with the legal system.
Verify the organization's legal compliance status.
Assist in reviewing the anti-fraud measures of applicable by-laws on individual case basis.
Implement relevant education and training to deepen the integrity management philosophy of all employees.
Implementations in 2024
Assessed systems and adhered to laws and regulations in formulating anti-fraud measures ensuring ethical management.
Revised the “Ethical Corporate Management Best Practice Principles,” “Procedures for Ethical Management and Guidelines for Conduct,” and “Rules Governing Rewards and Disciplinary Action.”
All units conducted regular monthly inventories and established mechanisms for managing regulation changes; the Legal Office convenes regular legal compliance representative meetings each quarter to discuss related implementations and disseminate information on important regulations.
Promoted and ensured Ethical Corporate Management Best Practice Principles implementations based on the duties of each unit, and regularly reported ethical management implementations to the Board each year. The Corporation's ethical management performance and implementations for 2023 and the first half of 2024 were reported to and acknowledged at the 14th meeting of the 10th Board on June 12, 2024.
To strengthen understanding of ethical management in all employees, we conducted the following ethical management education and training courses in 2024:
Hosted “Digital Ethical Management Education and Training Courses” for all employees; the course completion rate as of the course end date was 100%.
Hosted “Digital Insider Trading Prevention Education and Training Courses” for all employees; the course completion rate as of the course end date was 100%. Additionally, written promotional materials on Corporation insiders and quasi-insiders are provided every quarter.
Incorporated 8 “Code of Ethical Conduct” and “Code of Employee Conduct” education and training sessions in training for new employees; the course completion rate was 100%.
Operational Status of Corporate Governance Promotion Committee
Year 2023 Operational Status
Review the implementation status of the specific management plan for company's human rights policy.
Review the annual plan and implementation status of the Corporate Governance Planning team, Sustainable Development team and Ethical Management team under the Corporate Governance Promotion Committee.
Review the overall corporate governance, sustainable development, ethical management, and implementation status.
Examine the Year 2023 of information security governance, management, and implementation status.
Review the information disclosure system.
Review the legal compliance system and implementation status.
Review the progress report of the company's risk management.
Review of the plan to enhance investor relations.
Review the succession planning of the important management.
Check the preparation progress and implementation status of corporate governance evaluation.
Discuss the strategy of other major corporate governance matters.
Keep track of the board's resolutions related to corporate governance.
The meeting is held by every 2 months or at any time in response to the needs of special topics.
The report of the implementation and achievements status of relevant corporate governance initiatives is regularly reported to the Board of Directors every year. The above report is presented to the 3rd meeting of the 10th Board on June 20, 2023.
Teams
Corporate Governance Planning Team
Main Duties
Deal and track the Corporations preparations for corporate governance evaluations.
Deal and track the corporate governance external evaluations progress.
Facilitate and implement various policies and measures related to corporate governance.
Year 2023 Operational Status
Strengthen various policies and measures related to Corporate governance in accordance with TWSE Corporate Governance Evaluation System and CG6011/CG6012 Corporate Governance Evaluation indications.
Plan and build for English Website of ESG and Corporate Governance Zone.
A quarterly meeting is held to review the implementation of axiomatic governance.
Teams
Sustainable Development Team
Main Duties
Coordinate the Corporation's recent developments and goals in corporate sustainability.
Formulate future long-term strategies and guidelines for sustainable development promotion.
Oversee internal units responsible for planning and proposing annual sustainable development strategies and plans in their specific area of business.
Coordinate various departments in implementing sustainable development activities and projects.
Review and finalize sustainable development report.
Other tasks relating to review or compilation of sustainable development matters.
Year 2023 Operational Status
Confirm thesustainable development strategy of next year.
Plan the implementation plan of the sustainable development strategy of next year
Formulate the overall planning of the Corporation's recent enterprise sustainable development direction and goal.
Coordinate various activities and projects from each department for the implementation of sustainable development .
Responsible for the review and finalization of thesustainable development report, and issued in June 2023.
The meeting is held quarterly, and the sustainable development promotion status is regularly reported to the Board of Directors every year. The above report is presented to the 3rd meeting of the 10th Board on June 20, 2023.
Teams
Ethical Management team
Main Duties
Integrate ethical values into the Corporation's operational strategies and establish measures to ensure ethical management in accordance with laws and regulations.
Establish programs containing standard operating procedures and behavioral guidelines for work duties to prevent unethical behavior.
Plan internal organization, preparation, and job duties for mutual supervision and balance of operational activities at high risk of unethical behavior.
Promote and coordinate ethical management policies and training.
Plan systems for reporting ethical violations to ensure effective implementation.
Assist the Board and management in reviewing and assessing effective operation of ethical management measures, and periodically assess and report on adherence of relevant processes.
Year 2023 Operational Status
Check the inspection system and establish measures to ensure ethical management in accordance with laws and regulations.
Amend the Corporation's "Ethical Corporate Management Best Practice Principles" and stipulate Corporation's "Procedures for Ethical Corporate Management and Guidelines for Conduct" and "Declaration of Compliance with Ethical Management Policies“.
Formulate plans to prevent dishonesty, and set standard operating procedures and behavior guidelines for work operations in each plan.
The compliance with laws and regulations is regularly checked through a sound internal audit, accounting and internal control system. Each unit also conducts a monthly inventory and establishes a legal variation management system. The Legal Office regularly holds a meeting of legal compliance representatives every quarter to discuss related issues and important laws and regulations.
Promote and ensure the implementation of "Ethical Corporate Management Best Practice Principles" based on the job responsibilities of each unit, and report the status to the Board of Directors every year. The above report is presented to the 3rd meeting of the 10th Board on June 20, 2023.
The Corporation has arranged the trainings for implementing the Corporation's internal ethical knowledge and strengthening the ability of defending anti-corruption, the training implementation status for 2023 were as follows:
The Corporate ethical management course for junior-level managers and general employees are held for a total of 4,544 participants and ran for a total 2,272 hours.
324 new recruiting employees participated in this training, accounting for 6.8% of total employees.
Training courses for preventing of insider trading are held for a total of 4,686 participants and ran for a total of 2,343 hours.
Note: The "Corporate Governance Promotion Committee" was renamed as the "Sustainable Development & Nomination Committee" on June 15, 2024, and the functional structure was adjusted. This implementation situation was in 2023.
The promotion plan and implementation of the Company's sustainable development and ethical management are detailed in the “ESG website”.
