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Corporate Governance

Sustainable Development Status

Update: 2024/10/22

Implementation Status of Sustainable Development and Deviations from “the Sustainable Development Best-Practice Principles for TWSE/TPEx Listed Companies” and Reasons

1. Has the Company established a governance framework for promoting sustainable development, and established an exclusively (or concurrently) dedicated unit to be in charge of promoting sustainable development? Has the board of directors authorized senior management to handle related matters under the supervision of the board?

Abstract Illustration：
  • Following approval by the Board in September 2018, the Corporation established a Corporate Governance Promotion Committee. The Corporate Governance Planning Team, Sustainable Development Team, and Ethical Management Team have been established under the Corporate Governance Promotion Committee. In response to domestic, foreign and industry emphasis on sustainability issues, 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.
  • FThe Sustainable Development Promotion Committee is overseen by the Board and our Chairman, and is chaired by our President. Executives from our managerial departments serve as committee members and meetings are convened every quarter or as needed to discuss specific topics. The Committee drafts optimization strategies for corporate governance and sustainable development policies, systems, and functions; formulates measures to strengthen corporate governance; and reviews sustainable development policies to provide a reference for decisionmakers within the Corporation. Additionally, the Committee makes annual reports of overall corporate governance and sustainable development promotion and implementation status to the Board, and conducts risk evaluations and management of environmental, social, and governance issues relating to operations by materiality principles every year. Details on the operational status of the Sustainable Development Promotion Committee can be found on our corporate website on the "Corporation Governance and Organizational Structure” page.
  • The Sustainable Development Promotion Committee has set up six major teams, including Environmental Sustainability, Sustainable Service Planning, Employee Care, Social Integration, Corporate Governance, and Ethical Management Teams. The relevant responsibilities are detailed in the "Corporation Governance and Organizational Structure" page.
  • The Corporation fulfills corporate social responsibilities in accordance with the "Corporate Social Responsibility Best Practice Principles" approved by the Board of Directors in March 2016, and is active in promotion of corporate governance, social welfare, and environmental sustainable development, concepts which are integrated in our operational strategies and management goals. The Board amended the "Corporate Social Responsibility Best Practice Principles" and renamed it the "Sustainable Development Best Practice Principles" in March 2022.
  • Specific implementation results for 2024 included compliance with the strategic themes, items, main implementations, stakeholder communications and materiality matrix analysis for various ESG aspects, and the adjustment of Corporate Governance Promotion Committee structure. An associated report was submitted to the 10th meeting of the 10th Board on June 20, 2024. The Board expressed support for current implementations and planned sustainable development promotions. Details on the operational status of the Sustainable Development Promotion Committee can be found on our corporate website in the “Corporation Governance and Organizational Structure" page.
  • The Corporation strives to promote sustainable development and demonstrate a sincere desire to serve; our mission is to build closer relationships with passengers and local communities, and become a platform for life improvement. We also actively ensure that the sustainable management measures of our core business comply with UN SDGs so that we can keep pace with international trends.
  • The Corporation's 2023 Sustainability Report was published in August 2024. Details have also been disclosed on the "Sustainable Development " page of our "ESG" section of our corporate website.

2. Does the company conduct risk assessments of environmental, social and corporate governance (ESG) issues related to the company's operations in accordance with the materiality principle, and formulate relevant risk management policies or strategies?

Abstract Illustration：
  • In order to build a complete risk management system; strengthen effectiveness of corporate governance; ensure comprehensiveness, effectiveness, and reasonableness of risk management, as well as effectively evaluate and oversee risk-bearing capabilities of the Corporation to determine risk response strategies and implementation of risk management procedures, the Corporation's "Risk Management Regulation" and related "Risk Management Policies" were established following approval of the 27th meeting of the 8th Board on June 19, 2019 to provide reasonable assurance of the Corporation's mid- to long-term strategic plans and achievement of targets.
  • The Corporation has inventoried and identified, in a proactive and cost-effective manner, possible risks that may impact operations and profits due to Corporation business and operational activities, the main considerations being business environments, operations, finances, hazardous incidents, and other aspects. We have also reviewed comprehensiveness of corporate risk management procedures and effectiveness of risk management controls, and conducted risk evaluations of major environmental, social, and corporate governance issues relating to operations; these evaluations are used to establish implementation systems and identify main risk categories. For more information please refer to Risk Measures and Actions.

3. Environmental Issues

Abstract Illustration：
  • The Corporation has established an environmental management system in accordance with the ISO14001 Environmental Management System, and our Environmental Management Manual lays out specific implementations for all environmental management requirements. We passed ISO14001:2015 environmental management system verification and obtained a certificate in 2023, which is valid from September 24, 2023 to September 24, 2026.The certificate is currently valid. By establishing an applicable environmental management system, we can strengthen our pollution risk prevention and resource conservation management capabilities, and increase our responses to internal (such as organizational changes) or external (such as climate change, stricter laws and regulations) environmental impacts.

Abstract Illustration：
  • The Corporation has established an environmental management objectives and strategies for continual reduction of energy and water usage based on principles of safety, comfort, environmental protection, energy saving and carbon reduction, and conducts periodical, reviews of these environmental objectives. We also apply appropriate measures to protect the environment from possible negative impacts.

Abstract Illustration：
  • The Corporation actively faces the impacts of climate change. We set the Environmental Sustainability Team under Sustainable Development Promotion Committee which is convened by the President as chairman. With regard to the "Adaptation Strategy to Climate Change in Taiwan" proposed by the National Development Council, we continue to assist the Institute of Transportation, Ministry of Transportation and Communications (MOTC) in conducting research related to climate change adaptation, participate in the development of the railway and highway climate change adaptation information platform and the expansion of its functions, and strengthen the analytical functions regarding vulnerability and risk of the information platform, with a view to supporting decision-making analysis of climate change by railway and highway competent authorities. Furthermore, the Corporation has also signed the "Memorandum of Cooperation on Cross-border Disaster Prevention" with the Central Weather Bureau, Ministry of Transportation and Communications (MOTC) to enhance meteorological interpretation capabilities through mutual cooperation, while serving as an important reference for the Corporation to make traffic dispersion decisions and assess track safety during disasters.
  • Since 2013, the Corporation has cooperated with the government to promote renewable energy policies by leasing out rooftop areas of Wuri and Zuoying maintenance depots and the Yanchao Main Workshop to energy suppliers for the installation of solar power equipment with a total power generation capacity of 5,359 kW. We sequentially set up solar power generation systems at Liujia depot, Wuri depot, Zuoying depot, Taoyuan Station, Chiayi Station, and Tainan Station to utilize upper areas of depot flood basins, station rooftops, and outdoor parking lots. Total power generation capacity was approximately 3,811 kW. The Corporation also established connections with Taiwan Power Company's power generation equipment in 2020.
  • Additionally, we installed solar panels on the rooftops and as sun and rain shelters at Miaoli, Changhua, and Yunlin stations with a total power generation capacity of 258 KW to generate electricity for use at these stations. In 2018, THSRC also applied for and obtained Renewable Electricity Certificates for the solar energy generated at these three stations.
  • The main risks brought about by climate change include severe weather phenomenon such as extreme high temperatures; rising sea levels; increased rainfall, rainfall intensity, typhoons, cyclones, and lightning, which have increased in frequency and intensity, enhancing vulnerability levels of the railway industry and impacting our operations. At present (in 2018~2022), our adaptive actions toward climate change impact include:
    1. Establish trackside slope safety warning systems.
    2. Strengthen safety measures at trackside slopes near tunnel openings.
    3. Scour risk assessments and design of safety measures for HSR viaducts.
  • For information on the potential risks, opportunities, and corresponding measures of climate change for the Corporation now and in the future, please see Note 3. More details are disclosed on the "Disaster Prevention" page of "Intelligent Transportation" sub-section under our "Sustainable Development" section of our corporate website.

Abstract Illustration：
  • The Corporation continues to promote its four major energy-saving programs (self-managed energy saving, reduction of power consumption, transfer of peak power demands, and reasonable power usage), and has established energy-saving goals for each station (reduction of at least 0.86% average annual power consumption per passenger). The Corporation's water resource management policy includes water conservation, water reduction, and water recycling measures, and set an annual water-saving goal of at least 3.42% reduction of "water consumption per passenger." Additionally, in order to quantify carbon emissions trends and current conditions associated with the Corporation's overall energy consumption, we have established a "passenger kilometer emissions" indicator, and aim to reduce our carbon emissions by at least 1.5% every year.
  • Passenger volumes decreased in 2021 due to impacts from the coronavirus (COVID-19) pandemic, and annual energy-saving targets for 2021 were adjusted following approval from the Chairman. Target achievement rates for 2021 were as follows: "station energy-saving rate": 12.38%(>0.86%); "station water-saving rate": 17.17% (>3.42%); and "carbon emissions rate": 19.41%(>1.50%).
  • The Corporation calculates greenhouse gas emissions, water usage, and total weight of solid waste every year, and discloses these in our annual "Sustainable Development Report." Statistical data for the past two years (2020~2021) are as follows:
Item(Year) Greenhouse Gas Emissions(ton CO2e) Water Usage (m3) Solid Waste (ton)
2021 285,609.55 594,195 5,947.35
2022 316,942.85 653,423 6,306.73
  • Additionally, the Corporation voluntarily conducted greenhouse gas (GHG) surveys and external verifications for all 12 stations in 2016~2019, and obtained an ISO14064 Verification Opinion Statement. (Survey and verification of station GHG emissions for 2023 are completed by September 2023)

4. Preserving Public Welfare

Abstract Illustration：
  • Article 18, Chapter 4 (Maintaining social welfare) in the Corporation's "Sustainable Development Best Practice Principles" stipulates compliance with the International Bill of Human Rights in gender equality, right to work, and prohibition of discrimination, and establishment of relevant management policies and procedures.
  • The Corporation complies with the spirit of the International Bill of Human Rights and established a "Human Rights Policy" in 2018, which is disclosed on our corporate website and in Chapter 4 of this report. We adhere to the principles and spirit underlying the UN's Universal Declaration of Human Rights, the Guiding Principles on Business and Human Rights, the UN Global Compact, and the International Labor Organization's Declaration on Fundamental Principles and Rights at Work, including freedom of association, care for vulnerable groups, prohibition of child labor, elimination of all forms of forced labor, elimination of employment discrimination, and confirm that our human resource utilization policies do not discriminate on the basis of gender, race, social class, age, marriage status, religion, and political affiliation. The Corporation has established various regulations for corporate governance, environmental protection, public affairs, procurement and human resources.
  • We have also built sound management systems in compliance with the Personal Information Protection Act to protect the privacy of our employees, passengers, and all stakeholders. We have specific regulations relating to human rights policies to serve as a basis for identifying important human rights issues and to promote risk-reducing measures. The Corporation's "Supply Chain Management Policy" stipulates that in addition to procurement quality, costs, delivery date, and services, the Corporation should also take issues such as reasonable profits, social responsibility, labor safety, human rights, and environmental protection into consideration when making management and implementation decisions. When inviting bids, the Corporation stipulates that companies submitting bids should not discriminate on the basis of gender, discriminate against indigenous people or vulnerable groups, and should not use child labor. We actively contribute to society and participate in local activities to the best of our limited abilities, in hopes of maintaining sustainable interactions with our collaborating organizations to implement social care and strengthening of local culture. The Corporation has provided effective and appropriate grievance mechanisms for matters that infringe upon labor rights to ensure the equality and transparency of grievance regulation. Relevant human rights concerns and specific management plans and actions are detailed in Chapter 7 of this annual report. Additional information is disclosed on the “Human Rights Policy” and “Implementation of Mitigation Measures for Human Rights Risks" pages under "Policy" sub-section in the "About Us" section of our corporate website.

Abstract Illustration：
  • The Corporation has established a "Welfare Regulation," and not only provides employee vacation days, insurance, funeral subsidies, and health checks according to these regulations, but also works actively to establish a friendly work environment with catering, relocation subsidies, shuttle buses, uniform cleaning services, and even employee counseling, healthcare assistance, employee ride discounts, and employee benefits so that employees can enjoy their work. Additionally, we annually assess and compare related information to gain a better understanding of employee welfare to provide comprehensive benefits. In response to the increasingly worsening COVID-19 pandemic in 2020, the Corporation provided group insurance policies for specific time periods to protect our colleagues and ensure that they could work without fear during the pandemic.
  • The Corporation has established a "Retirement Regulation" and deposits pension funds for employees under prior pension plans according to law. A Pension Reserves Supervisory Committee was established and convenes every quarter to review pension reserves and other matters stipulated by law. We place deposits in individual labor insurance accounts established by the Bureau of Labor Insurance according to law so that employees under (new) pension plans of the Labor Pension Act can be protected after retirement. For more information on retirement systems and implementation status, please refer to Chapter Three of this annual report.
  • Our "Charter of Remuneration Committee" stipulates periodic review of director and manager performance, as well as remuneration policies, systems, standards, and structures, and regular reviews of general compensation levels in the industry. To ensure competitiveness and motivation, employee remuneration is determined by the Corporation's financial conditions, business performance, and policies, as well as the work duties, work abilities, and performance of the positions held. In addition, according to our "Articles of Incorporation," if the Corporation is profitable in a given year, it shall allocate not less than 1% of the net profit as profit-sharing compensation to employees.
  • Our "Remuneration Management Regulations" serves as a basis for determining employee remuneration levels, and we regularly review pay levels and remuneration policies, setting out salary allowances and bonuses according to our "Salary Payment Regulation" to provide allowances and reward employees for their hard work. Year-end bonuses and performance bonuses are distributed based on the Corporation's annual business performance, financial conditions, operating conditions, and individual work performance, and we have established remuneration adjustment policies to enhance Remuneration levels for 2022 have been adjusted according to employee performance, with overall adjustment rates (including structural adjustments) set at around 2.5% to achieve our goal of incentivizing employees.

Abstract Illustration：
  • To provide employees with safe and healthy work environments, the Corporation conducted environment monitoring at corporate headquarters, the OMC building, 12 HSR stations, and 4 maintenance depots.
  • Every year, the Corporation establishes Annual Health and Safety Education Training Plan which includes relevant EHS training courses; training completion rates exceeded 100%. Additionally, the Corporation hosts a number of promotional activities on health and safety standards, operational procedures, and regulations for new recruits and existing personnel to enhance their awareness and capabilities. A total of 90 activities were hosted in 2022.
  • We established "The Prevent Plan for Wrongful Physical or Mental Harm during the Execution of Job Duties" in accordance with the Occupational Safety and Health Act and guided implementation in all departments to ensure occupational health and safety.
  • The Corporation implemented annual occupational health and safety audits to assess whether audited units had fulfilled their responsibilities and were operating in accordance with relevant regulations. We conducted 7 audits in 2022.
  • The Corporation has established "Employee Safety and Health Work Instructions," "Occupational Safety and Health Management Plan," "Railway Operation Safety Rulebook," "THSRC Operation Regulation," "THSRC Operation Rules," and "Operation Control Center/Station Control Room/Depot Control Room Working Manual" to serve as a reference for operational and safety management. These procedures are updated at least every three years in accordance with stipulated regulations.
  • The Corporation established an incentive program to encourage our colleagues to report false alarms and violations occupational health and safety, thus enhancing awareness of occupational health and safety.
  • The Corporation hosted a number of traffic safety management events, for example traffic safety lectures; traffic safety quizzes; safe-driving promotional training for Yamaha and KYMCO motorcycles; and the Hsinchu, Taichung, Kaohsiung shuttle bus program.
  • The Corporation provides health checks for train personnel and regular staff members beyond those mandated by regulations. Employees aged above 45 under annual health checks, while those under 45 undergo health checks every two years. Additional health items were provided to senior staff (those above 45 years old who have worked at the Corporation for more than 10 years) beginning in 2018. In 2022, annual health check attendance for train personnel was 100%.
  • We established an online occupational health check reservation system to maximize service accessibility. Occupational health physicians provided hazard assessments, health consultations, home and work injury care, assessments for returning workers and worker fitness for 147 on-site sessions, ensuring comprehensive healthcare benefits for employees.
  • THSRC corporate headquarters, OMC building, 12 HSR stations, and 4maintenance depots are all equipped with the health rooms with nurses to provide employees, passengers, and contractors with health care resources for emergency injury care. We also stipulated the relevant work safety rules, and implemented the countermeasures for the personal safety and working environment of employees.
  • Every two years, we implement programs relating to prevention of hazards related to human factors, prevention of disorders brought on by abnormal workloads, maternal health protection, and so on. We also conduct health management surveys to analyze employee health risks and provide timely interventions and special preventive measures for preventive care and management.
  • In terms of preventive care for mental health, we have established hotlines and dedicated emails to provide multiple communication channels and care for our employees.
  • Conducted safety management audits and investigations of operational incidents to maintain HSR operational safety.
  • Provided training associated with identification of hazardous items and safety response measures for a total of 204 frontline personnel.
  • Conducted evaluations of security contractors and periodic audits of access management at all stations/depots/workshops along the HSR line.
  • Organized a variety of emergency drills and training sessions to help employees familiarize themselves with necessary response procedures and skills.
  • Organized training for HSR on-site emergency response commanders and engineers to help employees develop skills to coordinate with response command personnel.
  • Organized 2 personal information awareness training sessions for new employees; a total of 4,426 employees participated in annual retraining sessions.
  • The Corporation established and has maintained an occupational health and safety management system since its Construction Stage. THSRC successfully passed LRQA audits in July 2017 and completed TOSHMS (Taiwan Occupational Safety and Health Management System) CNS 15506 and OHSAS (Occupational Health and Safety Assessment Series) 18001 verifications. In June 2020, THSRC passed BSI (British Standards Institution) audits and completed transfer verifications for (TOSHMS) CNS 45001 and ISO 45001. The Corporation's current (TOSHMS) CNS 45001 and ISO 45001 certificates are valid from July 19, 2020 to July 18, 2023.
  • The Corporation's occupational health and safety management system verification scope encompasses all sites under HSR management along Taiwan's western corridor, including train stations, maintenance depots, trackside equipment, and offices, making THSRC the biggest verified occupational safety and health business unit in Taiwan.

Abstract Illustration：
  • The Corporation established a training program based on the two major themes of safety and service, which encompasses the three aspects of core competence, professional competence, management competence. This HSR-centric training provides employees with a comprehensive training program.

Abstract Illustration：
  • Customer health and safety, customer privacy, marketing, and labeling of all Corporation products and services adhere to the Railway Act and relevant regulations and are regulated by Passenger Transportation Contract, which are disclosed on our corporate website and stations for consumer reference. Customers can also contact us through our official website or call the THSRC customer service hotline at 4066-3000 for any further assistance, and we will handle customers suggestions effectively and efficiently.

Abstract Illustration：
  • The Corporation has established a Supply Chain Management Policy and disclosed related requirements and implementation results of environmental, social, safety, and health issues.
  • More details can be found in the “Supply Chain Management" sub-section of the "Sustainable Development" section on our corporate website.

5. Does the Company refer to international reporting standards or guidelines when preparing its sustainability report and other reports disclosing non-financial information? Does the company obtain third party assurance or certification for the reports above?

Abstract Illustration：
  • The Corporation's sustainability report follows the requirements of the Global Reporting Initiative Sustainability Reporting Standards (2021 GRI Standards) developed by the Global Sustainability Standards Board (GSSB), the Taiwan Stock Exchange Corporation Rules Governing the Preparation and Filing of Sustainability Reports by TWSE Listed Companies, the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies, and the Sustainability Accounting Standards Board (SASB) Transportation Standard Index.
  • Our sustainability report has been verified by the British Standards Institute (BSI), a third-party certification entity, which ensures that our report meets the Core option of the GRI Standards and complies with AA1000 Type 2 High and Moderate level assurance. The Independent Assurance Statement issued by BSI has also been included in the appendix to the report.

6. If the company has established the sustainable development principles based on "the Sustainable Development Best-Practice Principles for TWSE/TPEx Listed Companies," please describe any discrepancy between the Principles and their implementation:

Abstract Illustration：
  • The business operations of THSRC follow the Sustainable Development Best Practice Principle.

7. Other important information to facilitate better understanding of the company's sustainable development practices:

Abstract Illustration：
  • THSRC participated in the "2020 Taiwan Corporate Sustainability Awards (TCSA)"and won the "Top 10 Domestic Companies Sustainability Model Awards (Service Industry)" and the "Premium Corporate Sustainability Report Awards" from the Taiwan Institute for Sustainable Energy (TAISE).
  • To implement environmental protection and energy-saving policies, THSRC buildings are designed with sustainable environment concepts encompassing "ecosystem, energy-saving, waste-saving, and heath." HSR Miaoli, Changhua, and Yunlin stations are equipped with solar power facilities which generate power for station usage, and have applied for Renewable Electricity Certificates (RECs). These three stations respectively received Diamond Level, Gold Level and Gold Level Green Building Certificates from the MOI and Green Building Certification plaques.
  • In 2020, we applied to the Environmental Protection Agency to extend the 5-year validity period of the "High-speed Rail Transportation Service Carbon Footprint Label" (from December 17, 2020 to December 16, 2025), and was awarded a renewed carbon footprint label certificate (Certificate label No. 2014910001). Our carbon footprint was verified to be 32 gCO2e per passenger per kilometer (per passenger-kilometer), and our commitment to reduce carbon emissions by more than 3% within 3 years (carbon reduction of 4.92%) was awarded again the "Carbon Footprint Reduce Label" (Certificate label No. R2014910001).
  • On October 6, 2017, THSRC received the ISO14064 certification issued by the third party verification unit for all HSR station GHG emissions in 2016. On December 26, 2018, THSRC received ISO14064 certification for all HSR station GHG emissions in 2017. On November 22, 2019, THSRC received ISO14064 certification for all HSR station GHG emissions in 2018. On September 14, 2020, THSRC received ISO14064 certification for all HSR station GHG emissions in 2019.
  • The solar power facilities of Miaoli, Changhua, and Yunlin stations generated 202.6 MWh in 2020, and 202 RECs were obtained.
  • Since its initiation in 2010, the High-Speed Educational Endowment Program has accumulated 148 million NTD over 12 years and is estimated to have helped more than 27,000 disadvantaged schoolchildren achieve their dreams of learning.
  • The THSRC Smiling Train Program project was initiated in 2009 and collaborates with local educational and charitable institutes to help the disadvantaged fulfill their dreams of taking a ride on the punctual and convenient high-speed rail. A total of 803 disadvantaged groups and 143,181 people have participated in this program over the course of 13 years.
  • The THSRC Winter Outreach Blood Drive was initiated in 2012 and helps hospitals all over Taiwan store sufficient amounts of blood for use in time of medical emergency. THSRC hosted 12 blood drives in 2020 and has collected 13,767 bags of blood over the course of 9 years.
  • The THSR ART Together Program was initiated in 2015, connecting HSR stations to local communities through art performances. Over the course of 5 years, 573 groups and 17,052 people have performed at 9 stations (Taoyuan, Hsinchu, Miaoli, Taichung, Changhua, Yunlin, Chiayi, Tainan, and Zuoying), winning great praise from the general public and HSR passengers.
  • The THSR Museum was inaugurated on January 5, 2017 and displays cultural assets to illustrate the 3 spatial revolutions in the history of Taiwan's railway industry, the subsequent development of high-speed rail policies, BOT vendor selection and negotiation, the founding of THSRC, and the process of THSR construction and operation, allowing visitors to learn about THSRC's path through history. As of year-end 2020, a total of 373 groups,33,810 people have visited the museum.
  • For more information on our sustainable development, please refer to the "Sustainable Development" section on our corporate website.

8. Has the company invested in energy-saving equipment or environmentally friendly and sustainable equipment associated with green energy, and has the company disclosed its investments and specific benefits?

Abstract Illustration：
  • In order to implement the goal of energy conservation and carbon reduction and improve energy efficiency, the company has gradually replaced high-energy-consuming traditional lamps and air-conditioning equipment with energy-saving LED lamps and high-efficiency air-conditioning equipment in recent years, totaling 13,807 sets, with a total amount of 111,482 Thousand yuan, reducing carbon emissions by 1,982.28 tons. This year's equipment replacement results translate into an overall energy saving rate of approximately 38%. In addition, the implementation results of 2012 were applied for the "2012 Ministry of Economic Affairs Rail Transportation Enterprise Energy-Saving Equipment Subsidy Project" in July and passed the review in October.
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Item Equipment Description
(Energy saving/Green energy related equipment)		 Q'ty Cost/NT$ Benefit Location
Reduce carbon emissions /Ton Energy saving Rate
1 Project 1, Upgrade Lighting (include electrical ballast modify and change to LED lamp) 10,927 11,039,443 607.12 50.73% 10 Stations, 2 Depots and Main Workshop
2 Project 2, Upgrade Lighting (include electrical ballast modify and change to LED lamp) 2,700 437,850 89.18 50.00% 30 Substations along the Main Line
3 Project 3, Air condition system upgrade (Upgrade to high efficiency type of air condition equipment) 24 19,299,000 158.04 32.22% 1 Station, 1 Depot
4 Project 4, Air condition system upgrade (Upgrade to high efficiency type of air condition equipment) 50 29,694,000 218.30 26.38% 9 Substations
5 Project 5, Air condition system upgrade (Upgrade to high efficiency type of air condition equipment) 1 9,286,200 188.39 26.83% Operation Management Center(OMC) in Taoyuan
6 Project 6, Air condition system upgrade (Upgrade to high efficiency type of air condition equipment) 37 17,535,000 158.85 29.61% 4 Stations, 1 Depot
7 Project 7, Air condition system upgrade (Upgrade to high efficiency type of air condition equipment) 36 14,188,818 184.95 27.35% 2 Stations, 2 Depots
8 Project 8, Air condition system upgrade (Upgrade to high efficiency type of air condition equipment) 18 5,074,521 221.93 54.40% 1 Station
9 Project 9, Air condition system upgrade (Upgrade to high efficiency type of air condition equipment) 14 4,927,125 155.52 46.24% 2 Substations
  • Funds from sustainability bonds issued by THSRC in 2021 will be used for purchasing pollution prevention equipment for the Yanchao Main Workshop.
    (1) Total investment costs for this project amount to around NT$830,000,000. A new “automatic paint sprayer arm, VOC carousel type rotor, and electric thermal catalytic oxidation treatment system” will be installed at Yanchao Main Workshop to replace original manual spraying methods used to spray-paint high-speed trains.
    (2) We estimate that the electric thermal catalytic oxidizers, carousel type rotors, and other equipment for treating volatile organic compounds (VOCs) can reduce our VOC emissions by an additional 30% and enable us to achieve our pollution prevention goals.
    (3) Additionally, use of automatic paint sprayer robotic arms which can paint trains with high efficiency isolates personnel from environments with organic solvents, and we estimate that the amount of paint materials used to paint each train can be reduced by more than 30% compared to original manual processes, allowing us to achieve our corporate goals of reducing pollutants, protecting human rights, and environmental protection.
    (4) As of November 2023, approximately 45% of the project has been completed and NT$20,087,079 has been paid to vendors.
    (5) The sustainability bond investment plan used for application of sustainability bond accreditation in this project was certified by external agency Deloitte & Touche.

9. Has the company assessed community risks or opportunities and adopted corresponding measures, as well as disclosed specific measures and implementation results?

Abstract Illustration：
  • The THSRC Smiling Train Program project was initiated in 2009 and collaborates with local non-profit organizations and charitable institutes to help the disadvantaged fulfill their dreams of taking a ride on the high-speed rail for free or at discounted fares so they can experience the convenient and efficient services of the high-speed rail and have the opportunity to enjoy the customs and beautiful sights of different counties and cities in Taiwan. As of 2022, this program has assisted a total of 816 disadvantaged groups and 145,479 people.
  • THSRC is attentive of the needs of disadvantaged groups and actively collaborates with non-profit organizations. Starting in 2010, we began working with several foundations to organize the “High-Speed Educational Endowment Program” charity event and offer a platform for donations. Each year, collected donations are transferred in full to our collaborating units for coordination and utilization. As of 2022, we have organized this event for 13 consecutive years and accumulated more than NT$159 million in donations, successfully assisting more than 28,000 children in need. In particular, THSRC and the Children Are Us Foundation collectively raised more than NT$11 million in 2022 to help people with Down syndrome become more independent and move toward a brighter future through learning programs.
  • THSRC actively implements corporate ESG strategies that align with the government's 2050 net-zero transformation goals. In 2022, we collaborated for the first time with the Executive Yuan Council of Agriculture Forestry Bureau to host the “Go Green Together: Sustainable low-carbon actions” event so we could exert positive social influence and continue to co-exist harmoniously with the environment. In order to proactively enhance awareness of green consumption in passengers and members of the public, as well as promote utilization of green transportation, THSRC collaborated with the Forestry Bureau Hsinchu Forest District Office, Dongshi Forest District Office, and Pingtung Forest District Office on World Earth Day (April 22, 2022), gifting a total of 3,600 seedlings (including Vaccinium wrightii, Camellia japonica, Ilex rotunda, and other native plants of Taiwan) at HSR Taoyuan, Taichung, and Zuoying stations. The seedling pots were made from environmentally friendly and biodegradable paper pulp materials, eliminating wastage from traditional plastic pots. We also used this opportunity to promote THSRC's digital tickets, calling on our passengers and members of the public to protect the environment and realize our vision of green living.
  • We also worked with the Executive Yuan Council of Agriculture Forestry Bureau to implement a three-year plan for corporate forestry adoption. THSRC adopted two state-owned forest lands, 1.35 hectares at Puxin section in Xiluo (Yunlin) and 5 hectares in Hengchun (Pingtung). On May 5, 2022, our Chairman, President, and 150 employees traveled to our forest land in Yunlin to plant 3,807 native Taiwanese plants suited for wind-proofing and sand-fixing, including Koelreuteria elegans, Aglaia formosana, Melia azedarach, Tournefortia argentea, Scaevola taccada, and Hibiscus tiliaceus, demonstrating our commitment to environmental protection.
  • In response to noise impacts on residents along the HSR line, THSRC has formulated the “Voluntary Noise Prevention and Improvement Plan” and “Noise Prevention and Improvement Work Plan for Sparse Residents in Regions Along the High-Speed Rail,” as well as established the “Handling Process for Reporting High-Speed Rail Noise Incidents.” Surveys, interviews, and measurement sessions with stakeholders of noise incidents not only help us better understand the noise problems faced by petitioners, but also demonstrate our noise handling methods, prevention measures, and criteria for adopted improvement plans, thereby achieving the goal of two-way communication.
  • In 2023, our Chairman and the Employee Welfare Committee led 574 personnel in participation of tree-planting and beach-cleaning activities, allowing seeds of environmental sustainability to take root in the hearts of high-speed rail employees. In total, 100 trees of hope were planted at the Yanchao Main Workshop and 451 high-speed rail employees participated in beach cleanups that took place in Luzhu District in Taoyuan City, Taixi Township in Yunlin County, and Xianshi Township in Changhua County, clearing 2,425 kilograms of marine debris. High-speed rail employees are committed to environmental protection and sustainable development from work to life, and from ideology to practice. We hope that our series of environmental education initiatives can encourage all to prioritize health, care for the Earth, and work together to create a new model for corporate sustainability, social sustainability, and environmental sustainability.

10. Has the company invested resources in supporting domestic cultural developments, as well as disclosed the methods and results of said support?

Abstract Illustration：
  • THSRC has actively promoted the “THSR ART Together” program since 2015, opening up public spaces in stations to performance groups and individual performers from all over the world, creating countless opportunities for passengers to encounter art during their travels. So far, 576 groups have performed at various HSR stations. This program not only creates exposure and builds visibility of local performance groups, but also establishes HSR stations as an exchange platform for local art. This year, after pandemic conditions eased, THSRC resumed applications for performances by various groups.
  • The “THSRC Art Program” was jointly organized by THSRC and the National Culture and Arts Foundation based around the theme of “Unexpected Encounters with Art.” We have invited individuals and groups to create art for us since 2018, and also plan to invest more than NT$30 million that will turn HSR stations into venues for art performances, transforming stations and carriages into bridges that bring people closer to art and allow the public to have “unexpected encounters with art,” thereby bringing fun and surprises to passengers, and bringing emotion and warmth to transportation.
  • In 2023, we sponsored and supported a total of 40 art performances (including local movies, parent-child theater acts, traditional theater, One Song concerts, and so on), and invested almost NT$10 million in the aforementioned arts and activities over the whole of 2023.