Looking back to 2019, the world has faced major changes and challenges in politics, economy, society, science and technology, and even climate. Trade disputes between China and the United States have affected global economic growth and industrial layout; emerging technology also stimulates the whole environment; forest fires and extreme climate brought by climate change not only continuously endanger the living environment of human beings, but also cast many uncertainties into the industry. Despite of these severe challenges, the economic performance of Compal continued to grow steadily last year, and we have made remarkable achievements in global innovative design and competitiveness. All of these are attributed to our continuous improvement in corporate governance, employee care, environmental sustainability, supply chain management, technological innovation, social care and so forth, which can make Compal move forward steadily in many changes and challenges.
I. Corporate Governance
Transparent corporate governance is the foundation of a company. In accordance with the casababylonhostel.company law, the securities and exchange law and other relevant laws and regulations, we have established an effective corporate governance structure including the establishment of "Remuneration Committee", the selection of three independent directors and the establishment of "Audit Committee" with all independent directors as members, as well as continuing the stable operation of relevant functional committees in order to further improve the functions of independent directors and the quality of board resolutions, protect the rights and interests of shareholders and stakeholders, improve information transparency, and implement the spirit of corporate governance. Compal has been ranked among the top 6%-20% of all publicly-listed companies in Taiwan regarding "Corporate Governance Evaluation" of the stock exchange for 5 consecutive years, has been listed in the "FTSE4Good tip Taiwan ESG index" for two consecutive years and in the FTSE4Good index for four consecutive years, which is a long-term affirmation of the value of Compal’s sustainable investment by international institutions. The “2018 Compal Corporate Social Responsibility Report” published in 2019 was again granted the platinum award of "TCSA Taiwan Corporate Sustainability Awards" of Taiwan Institute for Sustainable Energy, which shows the recognition of Compal's corporate governance outside our company.
II. Employee Care
Talent is the key to the steady growth and transformation of our company. To attract, cultivate and retain talents is the first priority for Compal to take care of its employees. We provide a healthy and safe workplace environment, a complete career training plan and a competitive salary and welfare system, so that employees can work devotedly without worries about taking care of their families. In 2019, EAP was introduced and 52 active consultation cases were coached through professional consulting teams. At the same time, through various care and communication channels, we can understand the needs of employees, introduce employee health promotion programs, and hold various activities to promote their physical and mental health, which allows employees to take into account both the quality of work and life. In order to improve the social problem of low birth-rate, in 2019, our company continued to provide employees with a maternity allowance of NTD66000 per child, supporting a total of 254 babies. At the same time, it also won the online voting activity of "Science and Technology Industry Enterprise Happiness Survey" held by 1111 Job Bank, ranking the top 20 happiest enterprises in the minds of office workers. In order to protect the safety of employees, when the novel coronavirus broke out in the world at the beginning of 2020, Compal cooperated with the government to take a series of high-level epidemic prevention measures to reduce the infection rate of colleagues in the workplace.
III. Environmental Sustainability
In 2019, Compal continued to focus on climate change mitigation and adjustment, invested in product green design, plant energy conservation management and extreme cullimate response capacity, and used systematic management methods, data analysis and cloud application to reduce useless waste in the production process, control the use of energy resources, promote precise production, and create better economic benefits and environmental protection. Currently, we have been selected into the Carbon Disclosure Project (CDP) Climate Change Survey for six consecutive years (2014-2019), which will continue to be completed in 2019 to expose climate related risks and opportunities with TCFD framework, introduce and obtain the ISO 50001 Energy Management Systems Certification in three plant areas, and monitor the operation of production line equipment through real-time online system to improve management speed and reduce energy consumption. In addition, we have introduced and integrated the "Business Continuity Planning (BCP)" in all plants to reduce the impact of climate change, or the impact of high-risk events caused by global environmental health for implementing the sustainable environmental risk management of Compal.
IV. Supply Chain Management
As a member of the Responsible Business Alliance (RBA), Compal is committed to implementing the concept of corporate social responsibility (CSR). We sincerely communicate with our supplier partners and ask them to sign a Responsible Business Alliance’s Standard Commitment and “Declaration to Ban/Non-Use of Conflict Minerals” in accordance with RBA specifications to make the suppliers understand and fulfill their social responsibilities for labor, occupational health and safety, environment, ethics, etc. In 2019, we held three supplier conferences (Taipei, Kunshan and Chongqing) to complete the supplier conflict minerals survey, strengthen the CSR review and management of the first-tier suppliers, and work with customers to optimize the content of supplier management. The supplier CSR management platform is expected to be completed by the end of 2020, and we hope to have influence on more suppliers to participate in the grand event and achieve a sustainable future.
V. Innovative Technology
It is Compal's company mission to take "innovation" as the foundation. In 2019, Compal won the recognition, ranking 17 in iF Global Enterprise Innovation Competitiveness. It was also granted the honor of top 3 in Taiwan in the Germany’s 2015-2019 iF Product Design Award. In addition to product innovation, Compal has taken the lead in the industry through system innovation to make the production process more efficient and greatly improve the energy consumption in the process. At the same time, we make good use of the internal technology R&D innovation of the company. With the basis on our own advantages in information technology, combining with Taiwan's excellent medical environment and talents, we hope to make "creating a happy life with technology" as our operational objective by strategic deployments in domains of smart medicine and healthcare business. At present, we have injected resources in the fields of long-term care, telemedicine, EMR, intelligent ward, cancer immunocyotherapy, etc. We have also set up Sunshine Vitality Clinic as we delve into the field of precision discipline and collaborate with numerous other medical institutions and clinics and make new progress towards the core of AI smart medicine. Hopefully, in 2020, with AI, 5G and Cloud as the basis, we can develop solutions and platforms for automotive, healthcare and automation products to promote human welfare with innovative technology and bring better life to human society.
VI. Care Society
In order to implement the concept of “caring for the weak and helping others with kindness” of the former Chairman Mr. Chau-Ing Hsu, as well as fulfilling the company responsibility and giving back the land that nourished our growth, with the joint effort from all employees and Hsu Chau-Ing Social Welfare and Charity Foundation, Compal has proactively involved itself in the fulfillment of social responsibilities as a corporate citizen. In the past year, we have make promotion of education in rural townships, extending greater care to the lives of the disadvantaged minorities, embracing diverse cultures and advocating environmental protection as our major development route. By integrating internal and external resources of the whole company, all employees and our supply chain partners, we aspire to change the society with the power we hold as a business so that we can contribute to the creation of a “society of joy and happiness”. In 2019, we have held a public art exhibition for autistic children, two beach cleaning activities for our colleagues and a one-day educational activity of "protecting marine ecology" for children from Nuan Nuan Elementary School. We have cooperated with Fu Jen Catholic University on the “kangaroo plan” to strengthen the supplementary education of children in rural areas. We have participated in the “IT rooting plan” held by National Chiao Tung University to improve the quality education together! We also give back to the society with our zeal and sincerity through events such as blood donation, charity auctions, ecological protection, volunteer services and so forth.
Looking forward to the future, Compal will continue to eliminate the gap of social resources through the core strength of the enterprise, combining advanced high-tech products with the kindness and love of Compal colleagues, and actively develop the positive force, embrace change and innovation, strengthen the cultivation of key talents, and commit to digital and automatic development. We also invite customers and suppliers from upstream and downstream of the supply chain to gather the corporate power of truth, goodness and beauty, and strive to promote a happy society and create a sustainable human life.
 TCFD: Task Force on Climate-Related Financial Disclosures