Sustainable Development Status

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• 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.

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• 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.

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• 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 (2023~2026), our adaptive actions toward climate change impacts include the following three items, and progress reports are provided annually:
  1. Update and upgrade slope safety monitoring systems.
  2. Reinforce protections for tunnel entrances and steep vegetated slopes along the HSR line.
  3. Risk assessment and protection design for scoured cross-river bridges.
• 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.
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• The Corporation calculates water usage, and total weight of solid waste every year, and discloses these in our annual Sustainability Report. Statistical data for the past two years (2022-2023) were as follows:

Notes: The data coverage scope for HSR stations, including the Taoyuan Operation OMC Building, but excluding commercial areas, parking lots, and public areas shared with the Taiwan Railways Administration (TRA) at Nangang, Taipei, and Banqiao stations, as well as maintenance depots.

Notes: The data coverage scope for HSR stations, including the Taoyuan Operation OMC Building, as well as maintenance depots.

• THSRC conducted water footprint inventory and verification procedures for Tainan Station in 2022 and 2023, and obtained an ISO 14046:2014 Water Footprint Verification Statement for the past two years on November 24, 2024.

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• We implement water conservation, water reduction, and water recycling as our water resources management policy, and set an annual water-saving goal of at least 3.42% with regard to average water consumption per passenger served. 2023 was reduced station water consumption by 19.01% (>3.42%), achieving our target.
• Our waste management policy promotes reuse and recycling, continual source reduction, and strengthening of waste separation and recycling.

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• The Corporation calculates greenhouse gas emissions every year, and discloses these in our annual Sustainability Report. Statistical data for the past two years (2022-2023) were as follows:

Notes: Scope 1 and 2 emissions for the entire Corporation, including 12 stations, 5 Maintenance Depots, Headquarters office, Taoyuan Operation Management Center and main line (trains and roadside equipment); Figures for 2022 and 2023 were updated following verification.

• Corporation-wide greenhouse gas inventory and verification procedures for 2022 and 2023 were conducted in 2023 and 2024, respectively, and an ISO 14064-1:2018 verification statement was obtained in September 2023 and 2024, respectively.

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• In terms of greenhouse gas reduction policies, formulated reduction targets including reduction of annual average carbon reduction rate per passenger-kilometer by more than 1.50%, as well as carbon-reducing strategies related to train energy conservation, station energy conservation, service energy conservation, and use of green energies. We adopted specific actions including energy-efficient driving techniques, replaced lighting equipment with LED lights, and paperless tickets. 2023 was reduced carbon emissions by 25.51% (>1.50%), achieving our target.

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• 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.

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• To realize THSRC's sustainable development vision, fulfill corporate social responsibilities, and respond to stakeholder expectations, we have formulated sustainable development policies and listed “ESG and Sustainable Development Performance Indicators” as a performance appraisal item for senior executives. THSRC's “Regulations Governing Performance Management” stipulate that annual performance appraisal results for senior executives should serve as an important reference for job rotations, promotions, salary adjustments, and bonus distributions. This mechanism directly links ESG-related performance with remuneration and motivates active promotion of ESG-related policies and actions by senior executives, thereby implementing and achieving our sustainable development goals.
• THRSC has established a “Sustainable Development Promotion Committee” which is chaired by our President. The Committee is responsible for supervising overall sustainable development promotions at THSRC, and senior executives adhere to sustainable development policies when overseeing the business and action plans carried out by the units under their supervision. In 2024, the performance goals set for senior executives assigned a 25% weight to “Sustainable Development Performance Indicators” for the president, and weights of 15-20% to “Sustainable Development Performance Indicators” for other senior executives based on their positions and scopes of business.

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• 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 market information to gain a better understanding of employee welfare to provide comprehensive benefits. For more information on employee benefits, please refer to Chapter Three of this Report.
• 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 Report.
• The Corporation offers two days off per week, national holidays, and other holidays as stipulated by central competent authorities. Employee annual leaves are granted pursuant to the Labor Standards Act.
• The Corporation actively complies with laws and regulations to achieve our goal of diversity in human resources by utilizing a variety of recruitment channels. We have also established a section for recruiting disabled personnel on our recruitment website and hire employees with disabilities for specific jobs.
• The Corporation hired 48 employees with disabilities in 2023, including 11 severely disabled employees, surpassing legal requirements. We also hired 52 employees with indigenous backgrounds in 2023.
• To help our employees maintain a work-life balance, the Corporation guarantees salaries and career development status of employees on leave without pay, regardless of gender, so that our employees can implement family planning and childcare without worry. Regardless of gender, all employees who apply for (childcare, injury, or military service) leave without pay can enjoy applicable salary adjustments and guaranteed labor conditions when they return to work.
• Our "Charter of the Remuneration Committee" stipulates periodic review of director and manager performance; remuneration policies, systems, standards, and structures; and 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 no less than 1% of net profits as profit-sharing compensation to employees.
• The Corporation is attentive of market remuneration standards, regularly reviews remuneration policies, and sets out salaries, allowances, and bonuses according to the "Salary Payment Regulation" to reward employees for their contribution and 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 also have established remuneration adjustment policies to enhance employee remuneration and benefits. Annual salary adjustments have been implemented for 2023 to realize our goal of rewarding and caring for our employees; overall average adjustment rate was 3.2%.

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Safety and Health Policy

• Safety is the cornerstone of THSRC – Without safety, there is no THSRC. All decisions and actions of THSRC are based on safety as the highest guiding principle. THSRC will maintain proactive safety and health management with staff participation on improvements to achieve zero disaster and accident goals.
• Compliance with laws, regulations, and procedures; each staff has a clear responsibility to protect their personal safety, service objects, and management of THSRC's assets.
• Apply international recognized risk assessments for safety and health management systems to control and reduce risk hazards as much as reasonably practicable.
• Provide all staff with required training, as well as safety and health information to maintain attention and awareness of safety and health in performance of all daily duties.
• Select, supervise, and manage contractors and suppliers carefully to ensure that their operations, machinery, equipment, tools, and materials comply with the laws of Taiwan and THSRC's safety management requirements.
• Establish and maintain a high-quality working environment and operational management measures, and coordinate with required external assistance to maintain physical and mental health for all staff.
• THSRC reviews safety and health policy, rules, procedures, and executive performance regularly to enhance management performance and achieve continuous improvement of safety.

Monitoring of work environments

• We conduct periodic inspections of working environments at our headquarters, Taoyuan OMC Building, 12 stations, and 5 maintenance depots every six months to provide our employees with a healthy and safe work environment.

Safety and health management regulations

• The Corporation has established the "Employee Safety and Health Work Instructions," "Occupational Safety and Health Management Plan," "Railway Operation Safety Rulebook," "THSRC Operation Regulation," "THSRC Operation Rules," and "OCC Working Manual/Station Control Room Working Manual/Maintenance Depot Working Manual" to serve as a basis for management of safe operations at THSRC. Our operating procedures are reviewed and updated at least once every three years in accordance with the aforementioned regulations.

Safety and health monitoring and guidance

• The Corporation has formulated annual safety and health monitoring and guidance plans to provide suggestions and follow up on specific improvement items.

Equipment safety management

• The Corporation has classified all equipment and listed hazardous machinery and equipment in accordance with law. We conduct detailed inspections to ensure safe usage of all equipment. In 2023, we conducted regular inspections on our 37 pieces of hazardous machinery in accordance with the Regulations for Safety Inspection of Hazardous Machines and Equipment to ensure safe usage of all equipment.

Corporate verifications

• The Corporation established and has maintained an occupational safety and health management system since its Construction Stage.
• THSRC successfully passed LRQA audits in July 2017 and obtained both 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) reviews and completed transfer verifications for CNS 45001 (TOSHMS) and ISO 45001, and passed the annual routine verification so far.
• The Corporation's occupational safety and health management system verification scope encompasses all sites under HSR management along Taiwan's western corridor, including train stations, maintenance depots, trackside equipment, and offices.

Safety and health training

• Every year, the Corporation establishes an Annual Safety and Health Training Plan which includes relevant safety and health training courses. Additionally, the Corporation hosts a number of promotional activities on Safety and health standards, operational procedures, and regulations for all staffs enhance their awareness and capabilities.
• The Corporation hosted a number of traffic safety activities, for example, traffic safety lectures and safe-driving promotional training for motorcycles. We also provide shuttle buses for our employees in some stations or depots.

THSRC occupational safety and health training and promotions over the past three years:

Health checks, management, and promotion

• The Corporation provides health checks beyond those mandated by regulations. Employees aged above 45 years undergo annual health checks, while those under 45 years undergo health checks every two years. Train staff undergo annual health checks. Annual health checks for general and train personnel in 2023 were completed during March to October; the completion rate 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 over 144 on-site sessions, ensuring comprehensive healthcare benefits for employees.
• Infirmaries have been established at headquarters and the OMC building, as well as labor health management professionals who facilitate employee health management and promotion. Health stations of higher quality than stipulated by law have been established at all HSR stations and are equipped with nursing staffs that provide emergency medical assistance to passengers and employees.
• Every year, we implement programs relating to prevention of human hazards, prevention of disorders brought on by abnormal workloads, and maternal health protection. We also conduct health management surveys to analyze employee health risks and provide timely interventions and special preventive measures for preventive care and management.
• The Corporation has formulated the Prevent Plan for Wrongful Physical or Mental Harm During the Execution of Job Duties in accordance with the Occupational Safety and Health Act to guide implementations of all units and to ensure work safety and physical health.
• In terms of preventive care for mental health, we have established hotlines and dedicated email inboxes to provide multiple communication channels and care for our employees.

Investigation, handling, and statistical analysis of occupational disasters and near misses

• In 2023, occupational disasters inside our working environment included 7 occupational disasters, 19 days charged for disabling injuries, and the total injury index (FSI) of 0.03; outside our working environment, we incurred 13 traffic-related occupational injuries, 95 days charged for disabling injuries, and the total injury index (FSI) of 0.11. No occupational disease incidents were recorded.
• The Corporation provided substantial incentives and encouraged employees to propose management solutions for near misses under our Rewards Program for Reporting Near Misses of Occupational Safety and health Hazards to enhance occupational safety and health awareness.

Operational safety

• Refine operational safety management
  In 2023, we conducted 7 planned rail operational safety audits; audit results and improvements were reported and tracked by the Operational Safety Committee.
• Continue to enhance operational safety
  1. To maintain safety of HSR operational systems, train reliability, and punctuality, we conducted investigations of 1 general operational incident and 32 abnormal operational incidents that occurred over the year; improvement measures for these incidents were reviewed and tracked at relevant meetings.
  2. We hosted Safety Month promotion activities in November 2023 and strengthened safety awareness and voluntary reporting capabilities in on-site personnel through relevant lectures and competitions.
• Continue to enhance operational safety
  1. To maintain safety of HSR operational systems, train reliability, and punctuality, we conducted investigations of 1 general operational incident and 32 abnormal operational incidents that occurred over the year; improvement measures for these incidents were reviewed and tracked at relevant meetings.
  2. We hosted Safety Month promotion activities in November 2023 and strengthened safety awareness and voluntary reporting capabilities in on-site personnel through relevant lectures and competitions.
• Strengthen security operations
  1. In accordance with Article 56-4 of the Railway Act and to strengthen the security response, support, and handling capabilities of our station managers, supervisors, and operating personnel (including contractors), we organized 3 training sessions themed around identification of hazardous objects, security responses, and handling of security incidents (including lectures on key infrastructure) which were attended by 142 participants.
  2. We conducted 12 supervisory audits of our security contractors over the year in accordance with the security management system and "Security Management Plan" formulated by the Corporation. We conduct quarterly audits of access controls for all stations/maintenance depots/workshop factories to ensure that HSR security and access controls are well-managed.
  3. The Corporation has formulated the "Plan Of Security Measures For The Personal Information File" to guide protection of personal information provided by passengers. This year, we conducted 9 training sessions related to personal information awareness for new employees, and 4,738 personnel also participated in annual refresher training programs for personal information.
• Continue to refine responses and preparations
  1. In 2023, we established 10 response centers due to natural disasters, but no employees or passengers were injured.
  2. To strengthen the capabilities of first-line commanders, we held 1 seminar for new on-site commanders and emergency engineers this year which was attended by 43 participants.
  3. This year, we invited external support units (including police, fire, environmental protection, and medical units) along the HSR line, as well as 94 people from supervising units such as the Executive Yuan Office of Disaster Management, Taiwan Transportation Safety Board, Ministry of Transportation and Communications, and Railway Bureau, to participate in lectures on HSR disaster prevention and relief mechanisms so they could familiarize themselves with evacuation and rescue procedures and relevant regulations.
  4. To strengthen response capabilities to various abnormal operational incidents, we conducted 100 disaster prevention drills and training exercises in our stations, maintenance depots, and railway lines in 2023, including 2 joint drills which were conducted in tandem with external supporting units and one comprehensive technical response drill.
• Each station invites external supporting units and emergency passenger transport operators to jointly conduct surveys of the 184 emergency exits along the high-speed rail line once every six months. Surveys for 2023 were completed in May and November.

Abstract Illustration：

• The Corporation established a training program based on the two major themes of safety and service, which encompassed the three aspects of core competence, professional competence, and management competence. We also implemented cross-training for specific personnel and formulated manager learning passports to initiate our HSR-oriented training series which provides our employees with a comprehensive occupational training course that is beneficial for sustainable corporate development.

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• The Corporation manages developmental processes for THSRC retail products and provides high-quality and safe products to consumers through establishment of internal review and external inspection management systems. We also clearly stipulate intellectual property ownership, invest in product liability insurance, strictly adhere to all governmental regulations, and also formulate internal operational procedures to ensure protection of customer health and safety.
• The Corporation has established the Plan of Security Measures for the Personal Information File, a Personal Information Protection Implementation Team, and personal information operation representatives. We fully respect customer privacy and protect the personal information of our customers through internal audits, external verifications, and training associated with personal information.
• Marketing and labeling of all Corporation products and services adhere to the Railway Act, relevant regulations, and international standards. We have also formulated our "Ethical Corporate Management Best Practice Principles," "Code of Ethical Conduct," and "Code of Conduct." Our Passenger Transportation Contract also contains clear stipulations which are disclosed on our corporate website and stations for consumer reference and protection of customer interests. Apart from the aforementioned channels, we have also established a THSRC customer service hotline at 4066-3000, digital customer services, a customer suggestion box, and internal handling procedures for transparent and effective handling of consumer suggestions.

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• In order to strengthen sustainable collaborative relations with supplier partners, THSRC has set development of localized supply chains as a key goal in recent years. Procurement of local materials and development of local suppliers not only generates financial benefits for THSRC, but also helps to cultivate capabilities to manufacture world-class materials and components for high-speed railways within Taiwan's railway industry.
• THSRC released the "Supply Chain Management Policy" on September 21, 2017, but the Policy lacked relevant supporting measures when it was released. After referencing policies formulated by benchmark enterprises and facilitating rigorous discussions between relevant internal units, the Chinese and English versions of the amended "Supply Chain Management Policy" were released on November 1, 2023 to ensure that suppliers adhere to ESG principles as well as the requirements of applicable laws and regulations. The amended Policy provides specific explanations for the four major aspects of integrity and ethics, human and labor rights, health and safety, and environmental protection; the original four-point policy was changed to a five-point policy, serving as a guideline for adherence by all suppliers and business partners.

Supplier reviews

• Established different supplier qualification criteria for different projects.
• For projects involving foods sold on train trolleys, suppliers or manufacturers should hold ISO 22000 or HACCP certification.
• For localized rail industry procurement projects, suppliers should hold ISO9001 or other international quality certifications.
• For verification and inspection service projects, suppliers should hold TAF ISO/IEC 17025 laboratory accreditation or TAF ISO 17020 inspection body accreditation.

Supplier management and audits

• Established different supplier goals and actively adopted periodic and nonperiodic measurement and supervisory inspection and audit mechanisms, ensuring implementation of internal health and safety management mechanisms; and also established complete notification systems for effective handling of occupational accidents and to avoid negative impacts.
• Established a digital "Contractor Occupational Health and Safety Management System" to control and audit contractor factory entry and exit processes during all project stages. To strengthen execution of autonomous safety management by business units and contractors, overall contractor health and safety requirements are evaluated based on project needs, and evaluation results serve as a basis for future selection of contractors.
• Starting in August 2019, THSRC specifically required all companies participating in public bidding procedures to pledge compliance with THSRC corporate social responsibility regulations and sign a statement of commitment to corporate social responsibility. THSRC regularly convenes project team meetings to review self assessment forms submitted by contracting vendors and conducts randomized reviews of written information. THSRC began implementing on-site audits in 2022 to fulfill corporate social responsibilities.

Supplier training

• Supplier personnel must complete relevant training before entering HSR restricted areas and obtain HSR operational regulation safety certifications before commencing work. Supplier personnel for lengthy projects must also complete refresher training to extend their validity periods in accordance with HSR operational regulations.
• THSRC has established the "Contractor Management Plan" which stipulates that suppliers should organize physical health examinations and occupational health and safety training for all temporary personnel (such as work-study, cooperative education, and volunteer workers) as well as general employees.