ESG

The executions of Corporate Governance

The company has established and followed a “Corporate Social Responsibility Practice Principles” and regularly reviews the effectiveness of the implementation. Besides, the company has established “KMC Cycling Passion Sports Charitable Trust Funds”, by experienced teaching at the application level, sponsoring for riding activities and dream-come-true planning, etc. to assist in enhancing competitive strength and promoting healthy living and happiness. The company donated a total of NT$1,929 thousand to 15 units in 2017 for various cycling activities

The company promotes corporate social responsibility and related policies in the monthly or quarterly meetings.

The company has set up the “Investor Relations Office” as the dedicated unit to promote corporate social responsibility and is responsible for the planning and implementation of policies, systems, and concrete plans for corporate social responsibility. And regularly (at least once a year) report to the Board of Directors.In the meeting of the Board of Directors held on August 10, 2017, the Investor Relations Office had reported on "Promotion of Social Responsibility" and "Performing Integrity Business Conduct."

The company established a remuneration committee, and members are composed of independent directors and external experts to assist in the review of related salary and remuneration policies. The company also has established different appraisal systems for different positions and combines the corporate social responsibility policies through performance appraisal.

Environment for sustainable development

The company committed to improving energy efficiency within a reasonable range, such as planning for the electronic workflow process to reduce paper usage and use of energy-saving products to minimize the impact on the environment.Besides, the company is considering using environmentally-friendly packaging material for the products and adopts ECO-friendly material for environmental protection. (Easy recycling, resource saving, low pollution), promote simplified and consolidated packaging specifications.

The company has established a green logistics management system to conduct the calculations for product environmental performance and product ecological performance assessments and to implement corporate green marketing strategies and methods. Besides, the company is planning to obtain ISO14001 certification or other environment management system verification regulations.

In addition to complying with the international environmental protection standard regulations on the production process, the company has also engaged a series of carbon reduction programs. The first step in the implementation plan of carbon reduction is to inspect carbon emissions and apply for the certification. Only through complete investigation and calculations of carbon emissions from the various steps such as raw materials, production, packaging, transportation can effectively propose carbon reduction plans. In 2012, the company was the first chain manufacturer around the world to obtain the first carbon footprint certification label for chain product with the “X10SL 10-speed ultra-lightweight chain”. In February 2014, the “X11SL” chain passed the verification for carbon footprint and obtained a certification label. The carbon footprint certification promotes product life cycle assessment and carbon emission review under the PAS2050 requirements regulation. The validity period of the CO2 emission data verified by the implementation of the PAS2050 standard regulation is two (2) years. The company has also obtained certification label for its products again, and take concrete actions to implement environmental protection.

Besides, the Group has built up solar power systems in Taiwan plant and European companies, reducing carbon emissions by approximately 1,000 metric tons per year. The Shenzhen plant recycles the heat from the manufacturing process to the boilers for the residential area. The annual carbon reduction is approximately 500 metric tons.

Labor Relations

1.Welfare

  • Employee Stock Ownership Trust: According to the annual profit, the company additionally allocates a certain amount to purchase company's stocks, and allocate to employees according to their grades, seniority to retain talents and increase the employee's Centripetal force.
  • Cash gift: Cash gift for Dragon Festival, Moon Festival and Chinese New Year, Cash gift for marriage, Maternity allowance and Funeral subsidy.
  • Insurance and Retirement: All employees of the company participate in labor insurance, national health insurance, and group insurance, and contribute pension monthly based on the regulation.
  • Medical insurance: Health examination.
  • Other benefits: Perfecting promotion channels, distribute bonus according to the annual profit, and pay the bonus according to comprehensive considerations such as contribution, grade, and seniority.

 

2.Employee further study and training system:

  • The company plans to hold internal and external training for employees’ further study and training.
  • The company has formulated employee training regulations, and plans relevant training courses according to the requirements of the functions and professions, to enhance employee knowledge, improve the overall quality of employees and business performance.

 

3. Retirement system and implementation situation:

For the employees who applied the old pension system, the company has formulated labor pension regulation according to the relevant regulations of Labor Standards Act. The company entrusts actuaries to make actuarial calculations, accrue labor pension provisions monthly and deposits the pension funds in a dedicated account in Bank of Taiwan. The calculation and payment methods are based on the provisions of the labor retirement scheme. The employees who applied to the new pension system, according to the provisions of the Labor Pension Act, the monthly pensions are 6% of the wages and deposit to the individual retirement accounts.

 

4. The agreement between the investor and the employee and the maintenance of employee rights and interests:

  • The company pays much attention to the employees' opinions, holds regular labor conference and maintains a good relationship.
  • The company conducts regular workplace safety inspections, labor safety education training semi-annually and regular employee health examination to provide employees with a safe and healthy work environment. Fire drills are conducted at least once a year in each plant to ensure that employees can adequately respond to unforeseen disasters. The Group has set up security guards at the entrances of the various plants or has access control at each office area to control personnel access to ensure that employees have a safe working environment. The Group equipped various types of environmental protection facilities to the production line, including noise reduction facilities, heat recycling, etc.; besides, when operating the transportation facilities and overhead cranes in a warehouse, employees are required to understand the safety regulations in advance and to follow the rules to maintain a safe working environment.
  • The company has formulated management regulations based on the various labor laws and regulations, and with reference to international human rights conventions to enable the employee to have an equal and fair working environment, and protect the working interests of employees. The company complies with the regulations of various labor laws and is committed to the improvement of employee benefits. If the employee has a complaint, he or she may appeal to the immediate supervisor or the HR supervisor. When the HR unit received the complaint, they should launch an investigation. The opinions of the employees can be given full attention.