Tatung : 2022 Tatung Corporate Social Responsibility Report

TATUNG SUSTAINABILITY REPORT

About this report

"2022 Tatung Sustainability Report" has been prepared in accordance with the GRI Standards: Core option and AA1000 AS v3. In addition, we have adopted SASB Standard to disclose the specific industrial indicators. We expect this report is able to present a more focused content to the needs of the stakeholders, as well as sharing the sustainable achievements done by Tatung in a systematical manner.

Scope

The scope of this report covers Tatung's operations within the Headquarter, Tayuan Plant, Taoyuan Wires and Cables Plant, Taoyuan 1st Plant, and San-Hsia Factory. Due to Tatung Consumer Products Co, Ltd (also known as TCPC or Tatung 3C) is mainly in charge of the sales of Tatung's house appliances and consumer products, part of TCPC's information (sales, services, and consumer data management) is also disclosed in this report. The disclosure boundary of some material topics may include some of the subsidiaries and will be specifically described in its DMA.

Reporting cycle and reporting period

Tatung Sustainability Report is published by the end of June annually. Unless otherwise stated, the data and activities in this report are gathered from 2021.1.1~2021.12.31.

Data measurement techniques

Financial data in this report is cited from the Annual Report and presented in New Taiwan Dollars. Social, quality and environmental performance figures are presented in metric units, and the data reported to the authorities is preferentially used. The rest of data is gathered from internal statistics of the relevant divisions of the company.

External assurance

This report has been verified by TÜV Asia Pacific Ltd. Taiwan Branch (TUV NORD) based on AA1000AS v3 (Type 2, High level assurance) and GRI Standards. The assurance statement is enclosed in Annex 7.

Previous reports

This report is our 21th non-financial report since 2002. The previous report was published in June, 2021.

Restatements of information

The energy usages and GHG emissions for year 2020 are restated (page 131 and 133). The reasons are:

1. The factories carried out GHG emissions external verifications for year 2020 by the end of 2021.
2. The government official issued the latest electricity emission factor for year 2020.

Sustainability Report preparation procedures

1. Gather sustainable topics, reporting standards, verification standards, etc.
2. Identify stakeholders and material topics of the year, and submit to "Sustainable Development Committee" for approval.
3. Prepare the report in accordance to reporting standards.
4. Submit the drafted report to "Sustainable Development Committee" for approval.
5. Conduct third party verification.
6. Submit the report to Chairman for issuance.

Contact point for questions regarding to the report

This report is prepared by "Sustainability Report Reporting Committee" and the contact information is shown below:

Contact point: Han-sheng Chang

Tel.: [phone], ext. 3167

E-mail:[e-mail]

Sustainability Report downloading webpage: http://www.tatung.com/Content-EN/csr-report.asp

Tatung has done the best to ensure the accuracy of this report. If there is any discrepancy, the latest information from the relevant departments of the company shall prevail.

01

Top

Management

Statement

Table of

Contents

2021 CSR Highlights

Chairman

K. S. WANG

Identification on the stakeholders & material topics

Profile of

Tatung Company

Sustainable governance

Responsible supply chain, product safety & customer service

Happy workplace

• social participation

Sustainable environment

Annex

Message from Chairman

The Company's operations in 2021 faced continuous challenges amid the ever-changing condition of the pandemic, global shortage of materials and rising transportation costs. We adhere to the spirit of "integrity, honesty, industry and frugality" and a practical working attitude to pursue operational profitability and sustainable development of the company. Through the efforts of organizational restructuring, business transformation and cost control, the core business has turned losses into profits, and the re-investment business has also shown good results, hence the EPS in 2021 is NT$1.57.

In terms of corporate governance, we restructured the original "Corporate Governance Committee" into a "Sustainable Development Committee" in August, 2021. The committee is consisted with 3 to 5 directors, and an independent director as the convener and chairman of the meeting. The restructuring will further strengthen the supervisory function of Tatung's board of directors on environmental protection, social responsibility and corporate governance, and the implementation of the sustainable development system.

Looking forward to the future, human civilization has moved towards a low-carbon economy. Tatung is ready to face the challenges and opportunities brought by the global goal of net zero emissions by 2050. We have a solid foundation in consumer, system and electric power business. Products design and development also focuses on energy saving, environmental protection, health and other sustainable elements. We will focus on solar power, smart energy storage and electric motors and drive systems for vehicles based on its existing advantages and continue to innovate and implement environmental protection

President

I-Wen Chung

Top Management Statement

Message from President

Under the influence of climate change, the sustainable development of enterprises is faced with many challenges. The World Economic Forum has also identified that the biggest risk in the next 10 years will come from the many challenges brought by climate change. With the trend of energy saving and carbon reduction, Tatung will expand investment in innovative businesses such as solar energy, energy storage and electric vehicle motor and drive systems, and pursue high energy efficiency in products to help fighting climate change.

By the end of 2021, we have accumulatively completed the construction of a total of 211MW of solar power plants, which is equivalent to reducing carbon dioxide emissions by 123,700 tons for the country in one year. The target for construction of solar power plants is expected to reach 312 MW by the end of 2022. In order to continue to promote green energy, Tatung will actively establish large power stations and develop hydraulic engineering, charging piles for electric vehicles, green power and carbon trading businesses to provide complete energy integration and management solutions. In terms of energy storage systems for stabilizing the power grid, we have accumulatively completed a 1 MW bilateral contract, and the current bid price is 4 MW in 2021. In 2022, a 50 MW large energy storage system construction project is being actively planned and implemented, which is expected to become online in 2023. In terms of electric vehicle motor and drive system, we have developed a high-efficiency (250 kW) power system for electric buses. Tatung is now working with domestic vehicle manufacturers. The development of power systems with a higher capacity of 330 kW used for intercity buses will also be completed at the end of 2022. In terms of energy saving products, we will continue to research and develop ultra- high efficiency, smart application and electrical vehicle motors as well as optimizing the overall performance of home appliances and improvement to the energy efficiency of air-conditioning systems to meet the national level 1 energy efficiency standards. The series of refrigerators and washing machines with upgraded inverters has obtained Energy Label and Water Label to fulfill the goals of energy conservation and environmental protection.

Tatung is a leading brand in Taiwan's consumer, system and electric power business. Tatung will focus on solar power, smart energy storage and electric motors for vehicles to assist enterprises and government to achieve the goal of net zero emissions. While pursuing corporate development, we will continue to deepen corporate governance, fully communicate with stakeholders, and move towards the goal of sustainable development.

02

03

Table of Contents

About this report	01
Top Management Statement	02
2021 CSR Highlights	06

CH 1	Identification on the stakeholders and	08
material topics
	1.1 Identification on the stakeholders & engagement channels	09
	1.2	Identification on the material topics	12
	1.3 Tatung and Sustainable Development Goals	20
CH 2	Profile of Tatung Company	22
		Company profile	22
	2.1
	2.2	Financial performances	26
	2.3	Services and products	30
CH 3	Sustainable governance	32
		Corporate structure	34
	3.1
	3.2	Corporate governance	42
CH 4	Responsible supply chain, product safety,	60
and customer service
	4.1	Responsible supply chain	62
	4.2	Product responsibility	68
	4.3	Sales and customer information management	78

CH 5	Happy workplace and social participation	88
		Building a friendly working place	90
	5.1
	5.2	Good working conditions and career development	98
	5.3	Health, safety, and disaster free	112
	5.4	Participation and benefits to the society	120

CH 6	Sustainable environment	122
		Management on the environment	124
	6.1
	6.2	Energy consumption and GHG management	128
	6.3	Resources consumption and pollutants management	138
	6.4	Green products for a better earth	142
Annex	148
	Annex 1 Tatung Co. and Subsidiaries notes to consolidated	148
		financial statements
	Annex 2 Products and services provided by Tatung	154
	Annex 3 Factories and subsidiaries participated in 3P program	158
		and Accident Prevention Pays Program in 2021
	Annex 4 Greenhouse gas emissions verified based on ISO	158
		14064-1
	Annex 5 GRI Standards content index	159
	Annex 6 SASB Disclosure Index	168
	Annex 7 Assurance statements	170

04

05

Top

Management

Statement

Table of

Contents

2021 CSR Highlight

2021 CSR Highlight

Honors:

TATUNG 3C	TAYUAN PLANT	2021 TATUNG CORPORATE	SMART IP66 ROLLER	TATUNG COMPANY	TATUNG FOREVER ENERGY CO., LTD.	SHENG YANG ENERGY CO.
SOCIAL RESPONSIBILITY REPORT	TABLE MOTOR TENV
		"No. 1" organizations and companies that	2021 Public Construction Commission	2021 Top Solar System Award -
2021 DX Award	Energy Conserving Award Gold Award	2021 TCSA Taiwan Sustainability Award -	The 30th
by TEEMA	by Bureau of Energy	Corporate Sustainability Report Gold Award	Taiwan Excellence Award	support the purchase of sheltered workshops by	Golden Quality Award	Large and medium scale system /
				Taipei City Foreign and Disabled Labor Office.	by the Kaohsiung City Government	small scale system

2021 CSR Highlights

Identification on the stakeholders & material topics

Profile of Tatung Company

Sustainable governance

Responsible supply chain, product safety & customer service

Happy workplace & social participation

Sustainable environment

Annex

Economic-Governance Aspect

Item	Performances
Economic performance	Revenue: Individual revenue was
	NT$ 16.176 billion, and consolidated
	revenue was NT$ 29.605 billion.
	EPS: NT$ 1.57.
Sustainable management	Set up Sustainable Development Committee
Corporate governance	The performances of the company's board
	of directors and functional committees
	were both "GOOD".
Ratio between staff's	1.25~1.50:1
basic salary and legal
salary
Percentage of high level	100%
managers from local
Disclosure on non-	Published CSR Report for 20 consecutive
financial information	years.

	Social aspect
Item	Performances
Percentage of	95.01%
local employees
Average salary ratio	0.86~0.93:1
between female and
male employees
Percentage of	75.24%
employees who are
labor union members
Total education/	21,026 hours
training hours
Education/training	92.40%
satisfaction
Correction percentage of	100%
"Occupational Accident
Prevention Pays" Program
Supplier commitment	New introduced suppliers 100% signed it
letter	back.
Consumer satisfaction	Maintenance: 95.97.
	Shipping: 97.2.
No. of complaints about	0
information leaking
received from the
consumers
Participation in social	1.Tatung responded to the "Vulnerable
welfare	Children Scholarship Program" of the
	Taiwan Fund for Children and Families.
	The corporate totally fundraised
	NT$359,500 and donated to TFCF.
	2.Tatung and Tatung 3C together donated
	inverter washing machine to " Holy
	Word Children's Home", so that the
	children of the organization can replace
	the old machines with a long service
	life and improve a safe and comfortable
	living environment.

Environmental aspect

Item	Performances
Electricity reduced	969,515 kw-hr
GHG emissions reduced	486.70 tons CO2e
Waste recycling	75.59%
percentage
Certified green products	Green Mark: 13 models
	Energy Label: 99 models
	Water Label: 8 models
Promotion on green	29 Tatung 3C Stores are registered as
consumption	Green Store by EPA.
Supporting green	Received certificate of appreciation
procurement	for promoting green procurement from
	EPB, Taipei City Government.
	Green procurement amount:
	NT$ 48,701,781.
Solar power systems	211MWp accumulated, approximately
capacity on grid	123,718 tons CO2e reduction per year.

06

07