2 | EZconn 2015 CSR Report conn_CSR_report_20161130/CSR_report... · 2016-12-02 · 2 | EZconn 2015 CSR Report ... The report covers the period from January 1, 2015 to De - cember

2 | EZconn 2015 CSR Report

Ezconn 2015 CSR Report received the international assurance statement in GRI G4 & AA1000 from BSI for the first time.Report Overview

This is the first social corporate responsibility report issued by Exconn Corporation and we will continue issuing this report in the future to routinely disclose the operational performance other than the financial performance to the public and take actions in imple-menting the corporate vision of sustainability. Ezconn President, Shi-Zheng Li received the 2015 CSR report’s assurance statement presented by Taiwan’s Managing Director, Peter Pu from the British Standards Institution (BSI).

Report Period

The report covers the period from January 1, 2015 to De-cember 31, 2015.

During the report period, the corporate organization scale, structure, ownership, or supply chain did not en-counter any material change.

Writing Guidelines

The report has been published in accordance with the Global Reporting Initiative, Sustainability Reporting Guidelines Version 4 (abbreviated as GRI G4). The report is in accordance with core option and emphasizes on

the General Standards Disclosures and Specific Stan-dard Disclosures of GRI G4 to implement the annual sustainability issues and information disclosure. An ad-ditional complete GRI G4 comparison table is provided for indexing to the content of all chapters.

Assurance Standards and Results

This report was resolved by internal senior management meeting to seek for external accountability to enhance credibility. A third-party certification body with British Standards Institutes (BSI) was commissioned to certify the information disclosed in the report. The BSI adopts the Type 1 and Moderate Assurance of AA1000 Assur-ance Standard (2008) developed by the global non-prof-it organization AccountAbility as the assurance stan-dards. The BSI pointed out in the assurance report that this report conforms to the completeness, materiality and responsiveness of information disclosure. The fol-lowing statement has been recognized on the final audit report that this report has completely exhibited and dis-closed sustainability issues, which are currently includ-ed in the routine community with the management in the operations of social corporate responsibilities and will be advised to continue the implementation in accor-dance with the corporate social responsibility policy.

Additional external assurance measures of report

The financial data disclosed on the report comes from the consolidated financial report audited and attested by Deloitte Touche Tohmatsu Limited in accordance with the International Financial Reporting Standards (IFRS). Moreover, the ISO 9001:2008 Quality Manage-ment Systems, ISO 14001:2004 Environment Manage-ment System, OHSAS 18001:2007 Occupational Health and Safety Assessment Series, and TOSHMS Taiwan Occupational Safety and Health Management System, have all been certified by The British Standards Institu-tion ( BSI) Taiwan Branch.

Contact

Please contact us for any advice or suggestions for the content of the report.

Ezconn CorporationAddress: No.10 & No. 12, Ln. 121, Lide Rd., Taipei CityTEL: +886-2-2895-9777E-mail: [email protected]: FA&IT Division Director Allen ChuangSpokesperson’s Phone: +886-2-2895-9777#8668Spokesperson’s E-mail: [email protected]


Words from the Chairman

Little acts of goodness make the mighty ocean. Contribute individual effort for sustainability.This is the first Corporate Social Responsibility Re-port published by Ezconn Corporation, disclosing the non-financial operating performance to stakeholders, including corporate governance, green processing and eco-friendly management measures, employee occu-pational safety software and hardware equipment up-grade, employee educational training, welfare policy, and social welfare execution performance. The report illustrates the corporate vision and mission of sustain-ability. We would like to report on the excellence perfor-mance created under the economic category. On July 14, 2015, our company officially went public with a ticker symbol of 6442. The consolidated revenue this year is NTD$4,312,879,000 with an annual growth of 10%. The consolidated gross profit is NTD$849,748,000 with an annual increase of 18%.

To assure the conformity between the relevant agencies and personal responsibilities, we profoundly understand that corporate governance and the transparency of or-ganization composition increase in importance. The ul-timate objective of implementing corporate governance is to assure the maximization of shareholders’ interests. The supervision of management team and balance sys-tem reasonably define and allocate the relation of rights and responsibility between all shareholders and oper-ating teams. Our management philosophy consists of integrity, diligence, stability, pragmatism, quality with-out compromise, customers without complaints, and environmental protection without pollution. The highest governing body is the Board of Directors that complies

with the Company Act to call for scheduled sharehold-ers’ meetings and Corporate Governance Best Practice Principles for TWSE/GTSM Listed Companies. Moreover, we conform to the Third Corporate Governance Evalu-ation Indicators announced by the TWSE's Corporate Governance Center to develop and implement the policy of ethical corporate management.

To cope with the high-standard purchase threshold of global top clients for product quality and green process-ing, we exert to upgrade the suppliers in conformance with the global green specification requirement, in-cluding RoHS, WEEE and HSF green standards. On the other hand, local suppliers must continue to promote the techniques and knowledge in order to improve the traditional labor technology and develop the purchase department with selecting green, non-toxic raw materi-als. We attempt to build the sustainable industry growth with an S curve for RF connectors and optical commu-nication products for Taiwan. The link between the con-nector industry chain and our company will be able to upgrade the green manufacturing strength of Taiwan.

We hereby select two case studies to explain how to re-duce the impact on natural resources and the specific actions in reducing environmental pollution. The first case study is the Bi-Directional Optical Sub-Assembly (BOSA) products, where each product must be labeled with a barcode as the identification of the product, which purpose is to prevent post-processing error and meet the requirement for product traceability. Recently

we changed the paper barcode label into QR laser etch-ing barcode and it is estimated that we can save approx-imately 58,140 square-meters of label each year, which is comparable to saving 100 sheets of A4 paper each year. In view of numbers, in spite of the small amount of saving, it still reflects our best efforts in improving and optimizing each product, in order to possibly reduce the depletion of earth resources. Another real case is the cooperation with Taipei City Government for the “Tam-sui River Repurposing” project, where our Taiwan oper-ating headquarters and our Beitou Plant implement live-lihood sewage treatment engineering to treat livelihood sewage and discharge through ocean outfall and to meet the ultimate environmental protection standards. We always believe that little acts of goodness make the mighty ocean, and we should all contribute individual effort for sustainability.

Looking back the initial foundation of the company, the company employees have expanded from technicians to R&D teams with advanced education. We focus our-selves to take a different path and we are honored to become another hidden champion in Taiwan. In view of the future, we will uphold to the strong perseverance and belief to continue the cultivation on the fertile land of Tamsui River. We will do our best to push the corpo-rate operations to the top and to the world while with our best efforts enlarging the reputation of sustainable brands. Most importantly, we will be devoted in the ex-pansion of various practices of corporate social respon-sibilities and continue to give feedback to society.



About Us

We are a hidden champion rising from Tamsui River. Our connector products are globally renowned.In 2003, EZconn Enterprise Inc. (founded in 1996) merged with Jian-Sheng (founded in 1971) in 2003 and renamed, Ezconn Corporation. The two companies con-solidated their experience and strengths in innovation to become the next brilliant start of optical communica-tion industries. The main operating offices are located in Taiwan, Czech Republic and Ningbo, China. Partic-ularly, the Taiwan factory specializes in the R&D and manufacturing of radio frequency connectors as well as a small quantity of pilot-run optical fiber components. In December 2014, the company established the Mangrove Plant in Tamsui District, New Taipei City, as the R&D and small-quantity pilot-run base where 82 employees work on the optical fiber components. For overseas offices, the Czech office in Europe primarily engages in the R&D of optical communication products while the Ningbo Plant in China specializes in the mass production and manufacturing of optical communication products.

The company went public on the stock market, July 14, 2015 with the ticker symbol of 6442. In the pre-market business release held in June, 2015, the company offi-cially disclosed its operating performance to the inves-tors. The major products of the company are divided into Radio Frequency Connectors with major application in consumer electronics, telecommunication, comput-ers, and peripheral equipment as well as automobiles.

China NingboProfessional Production Line

12OOPeople

CzechResearch & Development/Product Engineering/High-End Production

15People

TaiwanResearch & Development/Product Engineering/High-End Production/Professional Production Line

480People


Another major product of the company, optical fiber component, benefited from the high growth in optical communication market and accounted for slightly higher revenue of 2015 optical fiber products, reaching 64% while the RF connectors accounted for 36%. The biggest market for optical communication is in Asia, particularly in China. The optical bi-di-rectional OSA (BOSA) for optical active components is primarily shipped to the world’s top three optical fiber equipment company, Huawei Technologies Co., Ltd, accounting for 30% of revenue. As Huawei’s FTTx products increase in global market shares and Huawei be-comes the highest rate of winning tenders in the Gigabit-capable Passive Optical Network (GPON) for “Broadband China,” the future close cooperation between both parties will con-tinue to be optimistic. Apart from Asia, we also target North America and Europe, knocking at the doors of emerging markets of countries such as Portugal and Spain.

In recent years, we have introduced domestic and international third-party certification and continued to improve product quality and implement green processing through ex-ternal audit. The following is the third-party certificate we have acquired, including ISO 9001: 2008 Quality Management System, ISO14001:2004 Environment Management Sys-tem, OHSAS 18001:2007 Occupational Health and Safety Assessment Series of Standards, TOSHMS Taiwan Occupational Safety and Health Management System, Petratron GP Green Products 2015 Certificate, and meeting the threshold for the TTQS Talent Quality-manage-ment System 2014 Version of Workforce Development Agency, Ministry of Labor.

▲ The third-party certificate ISO 9001（left）, ISO 14001（middle） / OHSAS 18001（right）.


In the early founding days when the development of do-mestic and foreign cabled TV industry was thriving, the company produced radio frequency coaxial connector (RF connector) with superior quality based on its remarkable and solid techniques in metal stamping and lathe cutting to meet the market demand for cabled TV transmission devic-es. Back in the day, a group of masters with only education in vocational senior high school relied on their experience, rulers and compasses, in the absence of computer drawing, to draw many development molds in a studio within short periods of time, demonstrating their solid and profession-al expertise. After years of improvement, the company has managed to reduce the processing error value for the metal components produced by lathe cutting from the previous ± 0.05mm to 0.02mm. The precision is enhanced 1.5 times and the error value produced is thinner than a sheet of A4 paper, suggesting significant performance in the upgrade of RF connector processing. Today, the scope of applica-tion for RF coaxial products has expanded to consumer electronics, communication, computers and peripheral, and automobiles. Ezconn develops and manufactures the following RF connector products:

• CATV / Head end/ Satellite TV• CATV / Head end/ Satellite TV• STB/ Cable Modem• Wireless Lan• Infrastructure / Base station• Instrument /Test Equipment• Automotive Connection System

Product and Services : RF Connector


Product and Services : Optical Communication Products

After establishing the solid operating foundation for the company with RF coaxial connectors, we were encouraged to discover new market trends with innovation by merging with the optical communication department of Infineon in August 2005. We have acquired the 10 optical communi-cation patents which Infineon has developed over 15 years and continue to provide services for key clients such as Siemens, Alcatel and other major European companies. Since then the market competitiveness of our optical com-munication products has been upgraded on an internation-al scale. We endeavor to improve and uphold the advanced fiber technology, particularly the capacity to develop inde-pendent development molds and equipment. The size of a fiber is only 1/3 of a strand of hair, and the development of developing fiber communication components of such size is extremely difficulty. We are able to make inner holes in the size of only 3mm on the fiber that is thinner than hair, while the inner hole is only visible to the eye through a mi-croscopic with around 10 times magnification. The accu-racy of this inner hole also plays a key role in the quality of fiber communication components. Ezconn manufactures the following optical communication products:

● Active components: The components undergo photo-electric effect and convert electric transmissions to optical signals through electric/optical conversion. This is in order to have electric/optical conversion at the receiver.

◆ Optical Transceiver ◆ Amplifier. ◆ Vertical Cavity Surface Emitting Laser Diode (VC-

SEL) □ Optical receiver and optical sub-assembly

(OSA) are divided by functions and account for nearly 90% of the company revenue in optical communication products. Transmitter optical sub-assembly (TOSA)

□ Receiver optical sub-assembly (ROSA) □ Bi-directional OSA (BOSA)

◎ 1.25G EPON BOSA ◎ 2.5G GPON BOSA ◎ 10G EPON BOSA ◎ 40G / 100G product development TRX

(QSFP+, QSFP28)

◆ TO-can components □ PIN-TIA TO □ FP/DFB TO □ ToBiDi (Tocan Bi-Direction): ToBiDi is a tech-

nology using micro module to integrate TX and RX on the same Tocan packaged products. Miniaturization is the biggest product com-petitive advantage and is globally patented.

□ 10G cooled TOSA(CML): In general, the use of To-can over 10G must be accompanied by the use of coolers in order to produce laser beams with fixed wavelengths.

◆ Optical testing and measurement equipment de-sign and manufacturing – Our company is the only company that produces tunable lasers with turn-able wavelength. Moreover, we also offer Micro-iT-LA with a tunable laser source module.


● Passive Components: The components could not produce electric-optical conversion, which main function is to con-tinue, diverge, filter, attenuate, and isolate optical signals, including the following products:

◆ Connectors

◆ Wavelength Division Multiplexing (WDM) for the optical com-munication of WDM couplers.

◆ Tunable light source applied on the 40G/100G medium to long-range Dense Wavelength Division Multiplexing (DWDM) system.

◆ Wavelength Division Multiplexer.

◆ Filter

◆ Isolator

◆ GPON (Gigabit-capable Passive Optical Network): Refers to the integrated Ethernet operations, which provides higher bandwidth than Ethernet services with TDM operations on the same transmission protocol, as well as lower cost of tra-ditional voice services. Compared with copper cable, GPON can reduce the maintenance fees and thoroughly avoid noise interference. Among the many access network bottle-neck solving technologies, GPON is the only technology that provides 2.5Gps bandwidth under single wavelength, and can more adapt to the future FTTx broadband market for the access layer.

◆ Ethernet passive optical network (EPON)

◆ Optical Line Terminal (OLT)

◆ Optical Network Unit (ONU)

◆ Wavelength Division Multiplexing (WDM)


Preparation of reportIdentification of material aspects and boundaries

To prepare this report, we have established the Ezconn Corporate Social Responsibility team while President Frank Lee holds the meeting to announce the official initiation of the proj-ect. The source of data for the economic aspect of the report comes from the consolidated financial statements published in the 2015 Annual Report. The scope of disclosure includes Taiwan Operating headquarters and Beitou Plant, Taipei Tamsui-Shanda Plant, Taipei Tamsui-Mangrove Plant, Jiayi Dalin Plant, China Subsidiary Ningbo Plant, China, and EZconn tech-nologies CZ s.r.o. With regards to the environmental and social categories, the disclosure boundaries include Taipei Operating Headquarters and Beitou Plant, Taipei Tamsui –Shanda Plant, Taipei Tamsui –Mangrove Plant, and Jiayi Dalin Plant.

▼ Operating Offices and Disclosure Scope of Report

NameFounding

TimeAddress

No. of

EmployeesResponsibilities

Consolidated Revenue Distri-

bution by Product CategoryDisclosure Scope

RF Coaxial

Connectors

Optical Fiber

ComponentsEconomy Environment Society

1Taipei Operating Headquarters +

Beitou Plant, Taiwan1987/05

No. 10, Ln. 121, Ln. 1212, Lide Ro.,

Beitou Dist., Taipei City229

RF connector R&D and

manufacturing1,574,178

(Unit: NTD

Thousand)

N/A

◉ ◉ ◉

2 Taipei Tamsui- Shanda Plant, Taiwan 2006/12No. 380, Sec. 3, Danjin Rd., Tamsui

Dist., New Taipei City139

RF connector

manufacturing◉ ◉ ◉

3Taipei Tamsui –Mangrove Plant,

Taiwan2014/12

2F, 26F, No. 27, No. 27-3 Sec. 2,

Zhongzheng E. Rd., Tamsui Dist.,

New Taipei City

82

Optical communication

R&D and small quantity

pilot run

N/A

2,738,701

(Unit: NTD

Thousand)

◉ ◐ ◐

4 Jiayi Dalin Plant, Taiwan 2000/12No. 151, Zhongzheng Rd., Dalin

Township, Jiayi17

Fiber communication

small quantity pilot run◉ ◎ ◎

5 Ningbo Subsidiary Plant, China 2002/10 ◎Optical communication

manufacturing◉ ◎ ◎

6 EZconn technologies CZ s.r.o 2005/08 ◎Optical communication

R&D◉ ◎ ◎

Total 467

◉ Fully disclosed ◎ Non-disclosure ◐Partially disclosed


The four steps including identification, prioritization, validation, and review are applied to identify the materi-al aspects. First in Step 1 of identification, the corporate social responsible department shall coordinate an inter-nal meeting to select relevant topics from the aspects and standard disclosures from GRI G4 in addition to sort-ing a list of issues for inclusion in the report, also known as the relevant topics.

Next to execute Step 2. The three principles of report identi-fication in GRI G4 will prioritize the relevant topics. Rule 1: The stakeholder inclusiveness is applied to identify the stakehold-ers and explain the responses to their reasonable expectations and interests in this report. Rule 2. The topics selected for this report are reconfirmed in accordance with the materiality for any significant impact on the economy, environment and soci-ety. Rule 3: Sustainability context; disclosing how the company improves or reduces damage on the local or global economic, environmental and social development trends. Meanwhile, we comply with GRI G4 guidelines and address the relevant topics identified in Step 1 as the aspects from this stage and on. We also distribute questionnaires to stakeholders and collect the issues they care about. The compilation of statistics yields to the following results of materiality prioritization:

In the validation process of Step 3, we apply the completeness of GRI G4 to evaluate the material aspects already identified. The principle of completeness includes the scope, all aspects covered by the report, such as economic performance, raw ma-terial, occupational health and safety, and training education

▼ Visualization of material aspects

for employees. For aspect boundaries, each material aspect is defined for impact boundary and for the completeness of informa-tion during the report period. Finally, the senior decision makers of the company will approve the list of material aspects in this report through prioritization. In the final stage of identifying the material aspect and boundary is the review process. In Step 4, the feedback information from stakeholders will be collected after the distribution of this report as preparation for the next reporting period. Hence, the opinions survey results of all stakeholders contain material significance and have a reference value which will contribute to the identification steps of the subsequent reporting period.

Identification of material aspects


▼ Topics Identification,, Boundary and Material Aspect Prioritization Statistics

Relevant Topics Corresponding Aspects

Boundary of Stakeholders’ Impact

Correspon-dence with at least 1 G4

Indicato

Internal External

Employees Share-holders Client Supplier Govern-

ment Media

1Continuing the stabilization of the existing product strength of RF connectors and actively developing new optical

communication products.

Economic

PerformanceG4-EC1 ◉ ◉ ◉ ◉

2

Implementing 100% of standard salary policy for entry-level employees of different gender in key operating offices

equal to or higher than the local minimum salary in addition to implementing salary and remuneration policy in

accordance with the local governmental laws and regulations.

Market Image G4-EC5 ◉ ◉ ◉ ◉

3Conducting the restriction of hazardous substances and the testing, management for substance of very high

concern (SVHC) as well as reducing packaging in accordance with RoHS(2011/65/EU) and EU REACH.

Products and

ServicesG4-EN27 ◉ ◉

4

The Occupational Safety & Health Committee is established under the President to specialize in the planning of

occupational safety and health policies. Developing “Occupational Safety and Health Committee Organization and

Meeting Agenda” was to introduce OHSAS 18001:2007 Occupational Health and Safety Assessment System and

TOSHMS Taiwan Occupational Safety and Health Management System, third-party certification.

Occupational

Health and SafetyG4-LA5 ◉ ◉

5Commitment in the building of employee diversity and equality. Dividing by gender, age groups, and minority

diversification indicator. Disclosure of members of corporate governance organization and employee composition.

Employee Diversity

and Equality

Opportunity

G4-LA12 ◉ ◉

6

Developing “Supplier Management Guidelines” for the production and purchase departments to execute “Supplier

Evaluation and Assessment Process” to suppliers. Items of assessment include quality, cost, delivery, service, and

Hazardous Substance Free (HSF).

Supplier

Environmental

Assessment

G4-EN32 ◉ ◉

7

Company complies with the statistics for the first time and discloses the power consumed during the report period

due to purchase. The company will schedule for power consumption statistics collections and design energy-

saving and light fixture replacement measures to improve energy efficiency.

Emission G4-EN16 ◉ ◉

8

The company actively engages with local community and exchanges information with the village head to

understand the expectation and requirement of local community residents, thereby developing the community

development plant in accordance with the local community development plan.

Local Communities G4-SO1 ◉ ◉

9

Cooperation with the “Tamsui River Repurposing” project conducted by Taipei City Government and the “Sewage

Household Connection-pipes Installation” policy issued by the Construction and Planning Agency of the Ministry

of the Interior, the livelihood water discharge conforms to the environmental standard emission, which thereby

protects the cleanness of river and water source.

Waste Water and

WastesG4-EN24 ◉ ◉

10

For all employees, including Taiwan nationals and non-Taiwan nationals, male or female and different positions, the

Company offers prestigious treatment of equality and signs employment contract in conformance with the “Labor

Standard Act” to implement fair and moral-conforming work environment management guidelines.

Non-Discrimination G4-HR3 ◉ ◉


Communication with StakeholdersThe company identifies the categories of stakeholders through internal meetings while conducting scheduled and non-scheduled stakeholder engagements with ex-ternal stakeholders by actively responding to issues and precautions that draw their attention. Please refer to the following instructions for the practice and frequency of stakeholder engagement. We call for annual sharehold-ers meetings for external stakeholders and publish infor-mation on the Market Observation Post System of Taiwan Stock Exchange routinely to cope with the regulations governing the publication of information by the compe-tent authorities. Moreover, we cooperate with govern-ment advocacies for corporate governance assessment systems to voluntarily submit one “Corporate Governance Evaluation Report each year. With regards to customer contact, the employees of sales and QC departments reply customers with product quotation in time and submit the consignment quality test report requested by customers. For the operating performance which draws attention to the financial media, we will have the spokesperson who replies to media questions formally upon receiving the of-ficial interview notice, and collectively announce the press release on the Market Observation Post System of Tai-wan Stock Exchange or company website. Meanwhile, we maintain close communication with internal stakeholders, including the Board of Directors who call for a meeting at least once a quarter with labor/management, Superviso-ry Committee of Labor Retirement Reserve, occupational safety and health committee, and the company website staff. Please refer to the following instruction for the for-mality and frequency of communication with the material stakeholders during the report period.

Investor Conference

On June 24, 2015, Ezconn held a grant investor conference at Shangri-La, Taipei to give pre-listing performance pre-sentations on the conference. The corporate management team explained the industry development, financial oper-ations status, future risks and key issues for the listing re-view committee, and the supplementary disclosures of our prospectus and assessment report, as required by Taiwan Stock Exchange Corp. Our team explicitly disclosed the company’s operational performance and future prospects to the public investors. All senior managers attended the investor conference while Chairman Steve Chen, Pres-ident Frank Lee, former National Chiao Tung University president Dr. Frank Chang, Mitsubishi Electric President, and Mitsubishi Electric Corporation Chairman delivered the speech. There was a display of large and sophisticated background panel that day that clearly exhibits the RF con-nectors and optical sub-assembly products of our compa-ny, leaving quite an impression of our advanced products and technologies on all attending guests.

Financial Performance Report

The annual financial report is released before March 31st each year. Pursuant to Article 36 of Securities Exchange Act, the company will announce and declare the financial report attested by CPAs within 3 months of each fiscal year. Such information is published on the company web-site and the Market Observation Post System of Taiwan Stock Exchange with convenient and quick access to the transparent financial information for shareholders and stakeholders.

For the quarterly financial report, the Q1 financial report is released before May 15th, Q2 financial report released before August 15th and Q3 financial report released be-fore November 15th. Pursuant to Article 36 of Securities Exchange Act, the company will announce and declare the financial report attested by CPAs and submitted to the Board of Directors within 45 days of Q1, Q2 and Q3 of each fiscal year. Such information is published on the company website and the Market Observation Post System of Tai-wan Stock Exchange.

The monthly revenue report is released each month and consolidated with the operating revenue financial report to be announced before the 10th of each month. Such infor-mation is published on the company website and the Mar-ket Observation Post System of Taiwan Stock Exchange with convenient and quick access to the transparent fi-nancial information for shareholders and stakeholders.

Non-Financial Performance Report

The “Corporate Social Responsibility Report” is published annually while the “Ezconn 2015 Corporate Social Respon-sibility Report” is published for the first time this year. The report discloses the non-financial operating performance to stakeholders, including corporate governance, green pro-cessing and eco-friendly management measures, employee occupational safety software and hardware equipment up-grade, employee educational training, welfare policy, and the outcome of social welfare execution. The report illustrates the corporate vision and mission of sustainability. Such infor-mation is published on the company website and the Market Observation Post System of Taiwan Stock Exchange for con-venient and quick access to the transparent non-financial information for shareholders and stakeholders.


Communications with Key Stakeholders

▼ Practice, Frequency and Specific Procedures for Stakeholders’ Engagement

Boundary Stakeholder Precautions Communication Path Communication Frequency Related records

Internal EmployeesSalary, Welfare, Educational Training and

Occupational Health and Safety

Labor/Management Meeting One meeting/quarter Labor-Management Meeting Minutes

Employee Welfare Committee One meeting/quarter Employee performance assessment form

Employee Performance Assessment Interview One meeting/quarter Employee performance assessment form

Occupational Safety & Health Committee One meeting/quarter Meeting Minutes

Supervisory Committee of Labor Retirement Reserve One meeting/quarter Meeting Minutes

Quality & Environment Committee One meeting/quarter Meeting Minutes

Internal promotion: E-mail, posters, elevator bulletins Unscheduled E-mail, posters, photos, announcement

External InvestorsRevenue and Economic Performance,

Corporate Governance

Annual Shareholders’ Meeting Once /yearHandbook for Shareholders’ Meeting, Meet-

ing Minute

Quarterly Operational Performance Presentation and Con-

ference CallOnce / quarter

Financial operation information of investor

conference from the Market Observation

Post System

Monthly Revenue Announcement Once/monthCorporate monthly revenue and press re-

lease announced on company website

External Clients Product Quality and Delivery Product Specification Consulting By project

External Supplies Supplier Management Regulations Supplier Management Regulations

When new suppliers join the

company supply chain

Regulatory Compliance Once /year

ExternalGovernment

AgenciesRegulatory Compliance

Revenue and Economic Performance, Corporate Governance Unscheduled Market Observation Post System

Official correspondence Unscheduled

External MediaRevenue and Economic Performance,

Corporate Governance

Latest news on company website, telephone or written

interviewUnscheduled Latest news on company website


Corporate GovernanceThe company officially issued public offering in July, 2015. To assure uniformity between relevant agencies and per-sonal responsibilities, we profoundly understand that the transparency of government governance and organization composition becomes increasingly important. The compa-ny implements corporate governance with the ultimate goal in assuring the maximization of shareholders’ interests and reasonable definition and allocation of the rights and re-sponsibility between all shareholders and the operation team through the supervision and balance system of the manage-ment team. We will disclose the establishment and compo-sition of the highest governance institution of the company and the operational mission of “Ezconn Corporation Articles of Association,” with association in the economic, environ-mental and social aspects.

Our management philosophy consists of integrity, dili-gence, stability, pragmatism, quality without compromise, customers without complaints, and environmental protec-tion without pollution. The highest governing body is the Board of Directors that complies with the Company Act to call for scheduled shareholders’ meetings and Corporate Governance Best Practice Principles for TWSE/GTSM Listed Companies. Moreover, the Board of Directors assigns and authorizes the Chairman and President to execute the rou-tine corporate operations. The Remuneration Committee of the company develops and supervises the remuneration system for the corporate directors, independent directors, supervisors, and management. Additionally the supervisors are established to exercise the right of supervision in order to enhance the operations of the internal supervision and inter-nal control system on the basis of fairness, transparency and division of responsibilities. The President also serves as the coordinator of the adjunct corporate social responsibilities to report to the senior management and the chairman with

suggestions on environmental and social impacts. The sales department is in charge of routine reporting to the senior management and the chairman. Moreover, we commission professional CPA firms to execute auditing in compliance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and the Generally Accepted Auditing Standards (GAAS), in addition to assuring the content of consolidated financial statements. The Occupational Safety and Health Office directly under the President is in charge of processing the occupational and health issues of employees while the RF Connector Business Group and Optical Communication Business Group jointly ac-cept and report the economic and environmental issues.

Ethical Corporate Management

With regards to the implementation of ethical corporate management, the company conforms to Paragraph 8 and Paragraph 9 of Article 6 of the “Third Corporate Governance Evaluation Indicators” announced by the TWSE's Corporate Governance Center to develop and implement the policy of ethical corporate management. The company developed the “Ethical Corporate Management Best Practice Principles on November 14th, 2014 to disclose its policy on ethical corpo-rate management and the commitment of the Board of Di-rectors and the management in the proactive implementa-tion of ethical corporate management policy. Moreover, the company also conforms to the execution of policy on ethical corporate management through internal management and commercial activities.

▼ Member of Board of Directors and Gender Composition

Title Name Gender

Chairman SHC Consolidated Investors LLC Representative: Steve Chen Male

Director CabTel Corporation Representative: Frank Lee Male

Director CabTel Corporation Representative: Tina Chang Female

Director Transnational Investment Limited Representative: Ho-Feng Chen Male

Director Arthur Chen Male * Age, under 50 years old

Independent Director Chung-Chiang Hsiao Male * Age, under 50 years old

Independent Director Chien-Ping Lee Male

Supervisor Bluewave Investment Limited Representative: Chih-Cheng Chien Male

Supervisor Dural Holding Limited Representative: Wen-Hsian Lai Male

Supervisor Henry Ko Male

Board of DirectorsRemunerationCommittee

Occupational Safety &Health Committee

Audit Office

Quality & EnvironmentCommittee

Optical CommunicationBusiness Group RF Business Group FA & IT Division Administrative

Center

President

Corporate Governance Structure



To expound the capital flows between different stakehold-ers and the major economic impact brought by the compa-ny to the society, the company has prepared the economic indicator in response to the production and allocation of economic values. Such indicators reflect how the compa-ny creates fortune for the stakeholders and the direct eco-nomic values produced and allocated by global operations during the report period. The source of collection for the financial data comes from the financial reports or the in-come statement audited by professional CPA firms.

The consolidated revenue this year is NTD $4,312,879,000 with an annual increase of 10% and the consolidated gross profit is NTD $849,748,000 with an annual increase of 18%. The consolidated net profit is NTD $317,565,000 with an an-nual increase of 36%. The consolidated earnings per share are NTD $5.05, up 30% in a year. The net asset value is NTD $34.40, up 14% in a year. The analysis of revenue ratio dis-tribution suggests that in terms of products, RF connectors reached a revenue of NTD $1,574,178,000, accounting for 36% pf the consolidated revenue while optical communica-tion products reached the revenue of NTD $2,738,701,000, accounting for 64% of consolidated revenue. With regards to the distribution of export clients, two companies’ sales income net value accounted for 10% or higher of the net operating revenue on the consolidated corporate income statement, including Company A in Asia with sales revenue of NTD $1,654,940,000 and accounting for 38%; and Com-pany B in America and Europe, with sales revenue of NTD $559,323,000 and accounting for 13%.

▼ Consolidated Revenue and Operating Performance Statistics Unit: NTD 1,000

2015 2014 2013

Amount Growth Rate Amount Growth Rate Amount Growth Rate

Capital 660,000 10% 600,000 11% 540,000 0%

Revenue 4,312,879 10% 3,919,141 20% 3,276,152 -7%

Net Operating Revenue 849,748 18% 722,759 43% 504,925 -5%

Operating Income Tax 115,394 73% 66,777 113% 31,279 15%

Net Profit 317,565 36% 232,921 98% 117,506 9%

EPS (Unit: NTD) 5.05 30% 3.88 98% 1.96 9%

Net Asset Value (Unit: NTD) 34.40 14% 30.15 2% 29.42 11%

Employee Welfare Fees 788,265 12% 702,034 20% 583,358 -2%

Payments made to investors 1. All dividends paid to sharehold-ers + 2. Interests paid to loaners, including the interests of any form of debt and loan (not only referring to long-term debt) and the unpaid dividends payable to preferred stockholders.

Interest expenses and

cash dividends, including stock

dividends: 122,500

113%


cash dividends, including stock

dividends: 57,506

1,233%


cash dividends, including stock dividends: 4314

-95%

Economic Indicator


▼ Product Revenue Distribution and Productivity Statistics Unit: NTD 1,000

Product Category Product Description 2015 2014 2013

Amount Ratio Amount Ratio Amount Ratio

Radio Frequency Connectors

Mainly applied to consumer electronics,

communication, computer and peripheral

equipment, and automobiles.

1,574,178 36% 1,679,068 43% 1,609,381 49%

Optical fiber components• Optical Sub-Assembly• Optical jumper

2,738,701 64% 2,240,073 57% 1,666,771 51%

Total 4,312,879 100% 3,919,141 100% 3,276,152 100%

▼ Major Client Information Statistics: List of Clients with Annual Net Sales Revenue Accounting for 10% or higher of Net Operating Revenue on Consolidated Company Income Statement in the last 3 years.

Unit: NTD 1,000

Major Client Information 2015 2014 2013

Client’s Name Region Amount Ratio Amount Ratio Amount Ratio

Client A Asia 1,654,940 38% 1,393,735 36% 982,083 30%

Client B America, Europe 559,323 13% 626,285 16% 432,755 13%


Taiwan’s supply chain continues to benefit from soft power training in green processing.Direct economic impact evaluates the value of transac-tion between the organization and stakeholders, which is often presented through monetary means. Specifi-cally, the number of employees of Ezconn’s operating headquarters, Beitou Plant, Taipei Tamsui –Shanda Plant, Taipei Tamsui – Mangrove Plant, and Jiayi Dalin Plant. Registered households in nearby regions account for 60% of all employees suggesting the positive impact of the corporate operating activities on the local eco-nomic prosperity and the promotion of employment op-portunities in local population

Meanwhile the context of sustainable development not only produces positive effects of direct economic impact on the flow between capital and stakeholders while also producing indirect economic impact. In oth-er words, the results of the company’s operating activ-ities on local society produce quantitative economic data and trigger many potential long-term effects that are not explicit or immediate. Due to the continuous in-crease in the company’s operating scale and the contin-uous order from globally prestigious clients, we impose the conformance of global eco-friendly requirement when faced with client’s high-standard procurement threshold for product quality and green processing. Hence local suppliers also continue to upgrade skills and knowledge, improving the labor’s traditional tech-nology, cultivating the selection of eco-friendly and non-toxic raw materials, and thereby indirectly promot-ing the formation of new learning cycles.

The company continues to organize various internal and external educational training to train the talent soft power from Ezconn’s procurement and quality control department, thereby driving the nearby supply chain plant to build RF connector and optical fiber product in-dustry with a growth S curve. We will be able to boost Taiwan’s manufacturing if we can connect through the connector industry chain. Hence we are not only load-ed with the responsibility of independently sustainable development but also expect to create more high-tech industry for Taiwan’s connector industry and creation. Looking into the subsequent development and un-der the promotion of home fiber among the 80 million households and driven by the strong demand for band-width upgrade in American telecommunication compa-nies. The company also accessed the automobile and smart home industry because connectors are the key components to linking all home appliances in smart families, which fully suggests the growing trend in the company products through the presentation of global market change.

Economic Category

The company generated a revenue of NTD $4,312,879,000 in 2015, up 10% compared with the same period from last year. As the size of the company operation contin-ues to grow, the company takes consideration of the sustainable development of environmental aspects in step by focusing particularly on the impacts caused by

biological and non-biological natural ecology, including the land, air, water, and ecology system. The impact un-der the environmental category includes the various in-puts such as energy and water as well as output issues such as discharge, effluent and wastes. Moreover, other impacts include biodiversity, transport, products, ser-vices, conformity with environmental regulations and environmental expenditure.

The RF connectors produced by the company are mostly customized under customer specification, consisting of different raw materials and outsourced processing sup-pliers. The report particularly selects the RF CSR sample as one of the representative products for disclosure of issues under the environmental category. The reason for selecting this product is that this product had the RF connectors with the highest selling ratio in 2015 while the economic impacts produced and the frequency of communication with stakeholders are most extensive. Meanwhile the selection of products with greater sales revenue further reveals if the process conforms to sus-tainable and environmental indicators. Such selection standard also corresponds with the disclosure of in-dicators under the economic category from previous chapters.


4-EN1 Raw material weight and volumeRF ConnectorThe disclosure of the indicators of raw material con-sumption highlights our contribution to global re-source protection and the efforts in lowering the density of raw material consumption and enhancing economic benefit. We select products accounting for higher sales revenue for this report year from the shipping data as the indicator products of raw material consumption. In the sample of RF connectors numbed RF CSR Sample, the raw material used include plastic, nickel plating, rubber, and copper. Particularly for the copper raw material, we select recyclable brass as it can be used for reproducing copper alloy bars during and after the life cycle of the end products. Moreover, the source of these raw materials comes from exter-nal supplier purchase rather than internal exploitation. According to the EU’s Restriction of Hazardous Sub-stances (RoHS) Directive entered into force in 2006, the aforementioned raw materials are non-hazardous materials. During the report period, 8,692 kilograms of plastic materials were consumed, accounting for 7%, 2,460 kilograms of rubber material were consumed, accounting for 2%, 105,944 kilograms of copper were consumed, accounting for 90%, and 105 kilograms of nickel plating were consumed, accounting for 1%.

Raw Material Consumption Statistics, using the sample ofRF connectors numbed in RF SCR Sample

Consumption

8,692 Kilograms

Consumption

2,460 Kilograms

Consumption

105,944 Kilograms

Consumption

105 Kilograms

7% 2% 90% 1%

Plastic Rubber Copper Nickel Plating


Raw material weight and volume

Optical Communication Business GroupMoreover, with regards to optical com-munication products, optical transceiv-er numbered ETP69966-7SB4 is used as the sample for disclosing the statistics of raw material consumption. The raw materials used for this product includes ZAMAK#3 zinc alloy, SUS stainless steel, PEI plastics, PE plastics, NY66 plastics, NBR rubber, and 2 compound raw ma-terials. According to Directive EU RoHS (2011/65/EU) and EU REACH, the imple-mentation of Restriction of Hazardous Substances (RoHS) and substance of very high concern (SVHC) test shows that the aforementioned raw materials do not contain hazardous substance and specifically suggests that the com-pany is committed in the control of non-hazardous substances.

▼ Raw Material Consumption Statistics, using the sample of RF connectors numbed in RF SCR Sample

Name of Raw

material

ZAMAK#3

zinc alloy

SUS Stainless

SteelPEI plastics PE plastic NY 66 plastics NBR rubber

Compound

raw materials

Compound

raw materials

Description of

Components

1. Housing

( 12.57g )

4. EMI Shield

( 0.28g )

8. CRAMP

( 0.19g )

9. FPC

( 0.56 )

10. Tube

( 0.015g )

11. Dust Cap

( 0.72g )

12. PCB

( 0.784g )

13. BOSA

( 1.821g )

5. Bail

( 0.288g )

2. Cover

( 4.77g )

6. Screw

( 0.64g )

3. Latch

( 0.58g )

7. P-Spring

( 0.132g )

Weight 17.92g 1.34g 0.19g 0.56g 0.015g 0.72g 0.784g 1.821g

Contains

hazardous

substance

No (Note 1) No (Note 1) No (Note 1) No (Note 1) No (Note 1) No (Note 1) No (Note 1) No (Note 1)

Note 1: Restriction of Hazardous Substances (RoHS) and substance of very high concern (SVHC) tests were conducted according to Directive EU RoHS

(2011/65/EU) and EU REACH.


G4-EN6 Reducing Energy ConsumptionFor our company, power is the only key type of energy consumption. The power con-sumed from purchase during the report disclosure period was used as the internal en-ergy consumption of the company and in the unit of Wh. The statistics of boundaries include the Taipei Operating Headquarter and Beitou Plant, Taipei Tamsui-Shanda Plant, Taipei Tamsui-Mangrove plant, excluding Jiayi Dalin Plant, China subsidiary Ningbo Plant, and operating region of EZconn technologies CZ s.r.o. In the future, the statistics of boundaries for energy consumption will continue to expand for different report pe-riods, using consistent calculations. A total of 4,220,966Wh of power was consumed in 2015, down 429,210Wh and 9%, compared with the same period last year.

The indicator for emission aspect discloses greenhouse gas emission and uses the in-direct energy emission from scope 2 as the operating boundary statistics, namely the emission caused by power process from the purchase or acquisition and used in internal consumption. The statistics of power emission released by the Bureau of Energy, Min-istry of Economic Affairs suggests that each Wh of power will produce 0.521 kilograms of carbon dioxide. Statistics results show that a total of 2,199 carbon dioxide equivalent was emitted from the indirect energy consumed scope 2 during the report period, down 9% compared with last year.

The main reason for consumption reduction in power energy is that our company re-placed old lighting fixtures from the abovementioned 3 plants, replacing the T8 fluores-cent lamp, commonly known as daylight bulbs, with the light-emitting diode lamp, com-monly known as LED light. A total of 2,900 lamps were replaced during the report period, accounting for 50% of the total lights in 3 plants, which will continue to be replaced in the future. Particularly, the continuous 24-hour production in Taipei Tamsui-Shanda Plant production line reduced power and energy consumption under full capacity which suggests the company is more efficient in energy use. The disclosure of the indicator in energy consumption reduction highlights the company’s commitment and efforts in

reducing environmental impacts, which also exhibits the company’s outstanding capac-ity in carbon emission, management costs, and response to energy supply and price fluctuations.

The statistics of water resource consumption

For the water resource consumption divided by source, the company product process-ing does not consume a water resource and only the lubricant consumption needed for machine operation. The lubricant is 100% recycled and reused and hence the use of water resource is down 4% compared with the same period last year, indicating no sig-nificant difference with the general livelihood water consumption.

▼ The statistics of water resource consumption

Year 2013 2014 2015

Consumption (unit: Wh) 17,781 18,566 17,808

▼ Power consumption statistics

Year 2013 2014 2015

Consumption (unit: Wh) 4,588,861 4,650,176 4,220,966


Sewage Household Connection-pipes Installation

In cooperation with the “Tamsui River Repurposing” project con-ducted by Taipei City Government and the “Sewage Household Connection-pipes Installation” policy issued by the Construction and Planning Agency of the Ministry of the Interior, the Taipei Operating Headquarters and Beitou Plant implemented the liveli-hood sewage treatment project at the end of 2014 and the total amount of such environmental expenditure was NTD378,000. The so-called Sewage Household Connection-pipes Installation refers to the deployment of specific pipelines that connect the livelihood sewer from the household outlet to the sewage pipelines at the al-ley, In other words, waste water from the bathroom and toilet, plate grease…etc. and the average livelihood waste water is diverted and collected by the engineering facilities of government assigned sewer treatment plants. The treatment process includes the dis-charge from household pipelines to the primary pipelines through sub-pipelines, and eventually reaching the Bali Sewer Treatment Plant. After the sewer is treated to comply with the effluent stan-dards, it will be discharged to Taiwan Bay via ocean outfall. Hence livelihood sewer is no longer discharged into the gutter, the gutter does not produce odor or breed pests, thereby upgrading home environmental quality. The gutters around the households are cleaned to reduce waterborne disease, and thereby maintaining

the cleanness of river quality. Moreover, the septic tank is filled up after the completion of household pipeline installation. The sus-pension of septic tanks will save manure removal and eliminate carbon dioxide emission. We uphold to the belief that little acts of goodness make the mighty ocean and even just the sewer treat-ment on livelihood wastewater discharge will effectively reduce the level of the earth’s pollution and we can all contribute our best efforts for the management of sustainability.

Install anti-static fume emission and filtering system to remove odor from cutting oil

In the processing of RG connector metal, the lathing machinery equipment cuts off metal copper to change the shape. The cutting oil is applied in the lathe cutting process as lubricant that carries away the cut waste copper chips to the recycling area. Under the high-speed operation of lathe machine, smog and odor will be pro-duced. Although the fume and smog produced from the cutting oil does not produce significant and immediate hazards to the envi-ronment and the human body, our company still takes active mea-sure in all possibilities of improving the work environment. Hence the total environmental expenditure for 2014 was NTD $114,450 for the installation of powerful exhaust equipment, silent motors,

power savings and anti-static machines incorporated with the an-ti-static fume emission filtering system installed in Beitou Plant and Taipei Operating Headquarters to effectively remove the fume produced from cutting oil. The 2015 installation continued and the total expenditure was NTD $157,000.

Management of waste

Waste is divided into process waste and livelihood waste. With re-gards to livelihood waste, trash classification can help donate the recycled wastes such as paper and PE bottle to the neighboring charity groups, Tzu Chi Foundation, as shown on the statistics on the right. The Taipei Operating Headquarters and Beitou Plant produced 4,785 kilograms while Taipei Tamsui-Shanda Plant pro-duced 9,060 kilograms. The non-recyclable livelihood waste is processed by the waste treatment companies with licenses is-sued from the Environmental Protection Administration of Exec-utive Yuan. Moreover, the company did not have serious wastes or chemical substance leakage during the report period, or any substantial fine due to violation of environmental laws and regula-tions. All manufacturing and production activities conform to the local environmental laws and regulations.

Total environmental protection expenditures and investments by type









Each review of supplier evaluation and assessment is the opportunity for improvementThe Company develops the “Supplier Management Guide-lines” for the production and purchase departments to execute “Supplier Evaluation and Assessment Process” for all suppliers. Items of assessment include quality, cost, delivery, service, and EU’s Hazardous Substance Free (HSF). The company applies the review mechanism to up-grade the QCDS capacity of suppliers, and thereby devel-op the various stages audit process in order to assist the suppliers with compliance “Ezconn Supplier Management Guidelines.” We also recognize and sign the various exter-nal environmental advocacies developed in addition to re-quest the commitment of these regulations from the sup-pliers in step. The company adopts 100% as the ratio for supplier screening through the environmental standards. The following is the environmental advocacy and regula-tions signed and agreed by the company and suppliers.

▼ Ezconn Upstream, Midstream and Downstream Supply Chain Flowchart

Upstream Midstream Downstream

Raw Material

Supplier

Outsourced Sup-

plier

EzconnCabled TV service and equipment supplier

RF Connector and Optical Communi-cation

Telecommuni-cation Service and Equipment Supplier

Products Design, R&D and Manufac-turing

Electric and Elec-tronic Equipment Supplier

Localization of RF Connector Suppliers

In the example of RF CSR Sample with higher operating rev-enue ratio in primary RF connectors, Taipei Operating Head-quarters and Beitou Plant as well as Taipei Tamsui Shanda Plant are both the center for R&D and shipment. The expen-diture for the purchase of the product is 100% from the local suppliers. From the economic perspective, the economic impact produced from the corporate operations not only cre-ates employment opportunities, payroll distribution, and tax payment but also incorporates the local small and medium satellite factories into the supply chain, thereby repurposing the economic development in Taipei Tamsui and Jiayi with positive impact. The purchase from local suppliers also sug-gests more effectiveness with remote management to cer-tain extent. On the other hand, we also take consideration of the sustainable development of suppliers such as the use of non-toxic raw materials and green processing upgrade as the directions the company and associate suppliers should work together.

Management of Optical Communication Products Overseas Suppliers

The supplier management policy for optical communication products is the same as that for RF connectors, which re-flects the consistent management measures of the compa-ny. The company maintains good relations with major Japa-nese suppliers of die and chip, the upstream raw material of fiber active components. In recent years the company has

been expanding the deployment of the production base for the pilot run and mass production of optical communication products in Taiwan and China. Such expansion leads to the increased transport distance for the cross-border logistics of overseas suppliers, producing certain levels of emission from the transport process and higher transport costs. The Optical Communication Business Group already shortens the cross-border transport route as one of the specific objectives in the implementation of corporate social responsibility and continues to work toward low carbon and emission reduction. Furthermore, recent global warming is attributed to climate change and anomaly such as typhoons, floods, aggravated draughts, and even extreme weather. The long-term stable cooperation established with overseas suppliers will effec-tively reduce the waste produced from transport and lower carbon emission to thereby reduce greenhouse gas.


Suppliers are required to comply with EU’s Hazard-ous Substance Free (HSF) by signing the Restric-tion of Hazardous Substances Directive 2002/95/EC (RoHS) and the Waste Electrical and Electronic Equipment (WEEE) commitment. In particular, RoHS restricts the control of the maximum content of haz-ardous substance used by suppliers in raw material and suppliers may not use the following six chemi-cal substances: lead, mercury, cadmium (maximum allowance is 100ppm), CrVI, PBB, and Poly Bromi-nated Diphenyl Ethers (PDDES). Suppliers also must provide the Material Safety Data Sheet (MSDS) for chemical substance used in processing and produc-tion as well as the test report issued by third-party certification body.

Request suppliers to sign EU’s REACH

EU’s Registration, Evaluation, and Authorization of Chemicals are known as REACH. REACH targets at the control of chemical raw materials, compared with the directive RoHS’s restriction on electronic and mechanical products. The EU is gaining awareness that the process and source of raw material for elec-tronic and mechanical products contain chemicals

such as plastic, rubber, organic or non-organic ma-terials. The EU then passed the International Chemi-cal Prevention Management Guidelines in 2008. The company has introduced REACH into the supplier management system and requests the suppliers to make commitment and promise of product confor-mance with REACH. In case the suppliers’ products contain Substances of Very High Concern (SVHC), suppliers must fulfill their duty to communicate.

Metal Conflict-Free

The company complies with Conflict Minerals Act to request suppliers not to purchase or use conflict minerals, and suppliers must make a commitment to use responsible sources of minerals in order to assure the minerals used by the company such as tin, tantalum, tungsten, and gold, and are not the re-sult of armed conflicts. This policy is incorporated with the required items for supplier purchase man-agement and product design and suppliers shall be obliged to disclose the information to the smelting plant in case any conflict metal is used.

▲ Test report of raw material

Certification of EU’s RoHS, WEEE and HSF Environmental Standards


Occupational Health and SafetyTo assure the safety of our employees at work, we comply with Environment Health Safety (EHS) by establishing a responsible team and management system, developing rigorous policy, procedure and management standards, and promoting inter-nal occupational safety and health operations. We continue to work towards a zero-failure goal by embedding the core objective of safety first in our work culture. The Occupational Safety & Health Committee is established to assist with the supervision and suggestions for occupational health and safe-ty related plans in addition to developing the “Occupational Safety and Health Committee Organization and Meeting Reg-ulations,” where the employees shall account for at least one third of the total members of the Occupational Safety & Health Committee.

The work injuries occurred in Taipei operating headquar-ters and Beitou Plant, Taipei Tamsui Shanda Plant, Taipei Tamsui –Mangrove Plant during the report were all mi-nor injuries which could be resolved with onsite first-aid. There were no serious labor safety incidents or work re-lated mortalities during the report period. Minor incidents include slips and bruises. All incidents were reported to the department supervisors onsite in accordance with the OHSAS 18001 Occupational Safety and Health Manage-ment System Standard Process on the day of occurrence. Each year the occupational disease health examination is conducted to trace and validate employee health. Mean-while, we have offered 35 courses in 2105 and complet-ed 422 hours of occupational safety and health training hours. We have built a work environment with low work-er injury rate and absenteeism through prevention and thereby maintain the occupational safety of employees.

▼ Occupational Injury Statistics

Taipei Guandu Plant (Beitou) Taipei Shanda Plant Taipei Mangrove Plant

Male Female Male Female Male Female Male Female Subtotal

Cases of Labor Safety

Injury0 1 1 0 0 0 0 0 0

Days of Working Hours

Loss from Labor Safety

Injury (Unit: Days)

0 21 21 0 0 0 0 0 0

Continuous improvement of site operating environment – RF connection production line

1. The typewriter at the processing site should be installed with sensor device to avoid arm injury through machinery rolling.

2. The oil smell is quite heavy at the processing site, and anti-static oil removal should be installed to maintain the health and safety of personnel.

3. Due to the greater noise with the labeling zone at the processing site, the machinery should be wrapped to protect personnel’s hearing.

4. The processing site is manual feeding and use manual tools for execution to avoid arm injury with the personnel.

5. The lathing of automobile manufacturing division requires operation by both hands before operating the machine.

Continuous Improvement on Site Operating Environment –Optical Communication Production Line

Taipei Tamsui-Mangrove Plant is a small quantity pro-duction base for optical communication products that implements various improvement measures on the oc-cupational and safety process of the optical communi-cation production line. The measures include changing manual riveting stations into instrument monitored riv-eting, changing filter under microscope to use CCD that reduce eye fatigue in the operators, using laser welding, installing door-close protection initiation on machine, wearing goggles, and upgrading SEN conforming prod-ucts release test stations to programmed automatic de-tection to reduce physical fatigue in operators through repeated actions. More process and performance of occupational safety and health improvement will be dis-closed in the next report period.






▼ 2015 implemented a total of 35 courses, completed 422 hours the number of occupational safety and health training

Item Course TitleTraining

hoursInternal/External

Training Training Institution Training Target

1 Safe Electricity Use 6 Internal Training Chung-Nan Liao Understand safe electricity use

2 Radiation Protection Training 9 External Training Radiation Protection Association R.O.C.

According to “Ionizing Radiation Protection Act Art. 14 ” gave a recurrent training

3 HSF Process and Regulations 2 Internal Training RF R&D Division HSF process and regulation

4 Special Safety and Health Educational Training Course for Special Personnel of Acetylene welding, cutting or heating 18 External Training China Productivity Center Meet the legislation of labor safety and health and

operation reqirement of heat - treatment of jig.

5 Fork Lift Truck Retraining 3 External Training Government certified training agency Can operat Fork Lift Truck independently

6 Chemical Hazardous Substance Common Knowledge Course 2 Internal Training Processing divisionEmployee labor safety and health concepts and knowledge about health and safety, accident prevention

7 Firefighting Manager Training 16 External Training China Productivity Center Awareness and improvement of firesafety

8 Class A Labor Safety and Health Operation Supervisor 42 External Training China Productivity Center meet the demand of law

9 Occupational Safety and Health Manager 107 External Training China Productivity Center meet the demand of law

10 Rescue Training – Retraining 3 External Training China Productivity Center meet the demand of law

11 Firefighting Manager – Retraining 24 External Training China Productivity Center meet the demand of law

12 HSF Hazardous Substance Training 2 Internal Training Quality Assurance Dept. Company ‘s culture and prospect and Administra-tion regulation

13 Firefighting Safety and Educational Training – Beitou Plant 8 Internal Training Human Resource Dept.Meet the demand of environment and safety and health and client , establish the concepts of envi-ronmental protection to colleagues

14 Fixed Crane Operator with Hoisting Load under 3 tons – Elevated ground operation 18 External Training China Productivity Center meet the demand of law

15 Occupational Safety and Health – Accounting Dept. 3 Internal Training FA & IT Division meet the demand of law

16 Launch of Occupational Safety and Health Act 3 External Training External Consulting Company meet the demand of law

17 Organic Solvent Operation Supervisor Retraining 6 External Training China Productivity Center meet the demand of law

18 Occupational Disaster Rescue Staff Training Class 18 External Training Workers’ Disaster Prevention Association meet the demand of law


▼ 2015 implemented a total of 35 courses, completed 422 hours the number of occupational safety and health training

Item Course TitleTraining

hoursInternal/External

Training Training Institution Training Target

19 Labor Safety and Health Education – Finished Products Department 2 Internal Training Chunhui Lee meet the demand of law

20 Risk Assessment Hazard Identification Training 1 Internal Training Bu-Men Yu meet the demand of law

21 Hoisting Operator Course 18 External TrainingChinese Crane & Elevator Associ-

ationmeet the demand of law

22 Occupational Safety and Health Educational Training 4 Internal Training Chunhui Lee meet the demand of law

23 Chemical Hazardous Substance General Knowledge Course 2 Internal Training Wen-Jen Pai meet the demand of law

24 Firefighting Manager Seminar Training 8 External Training China Productivity Center meet the demand of law

25 Chemical General Knowledge Training 12 Internal TrainingOptical Communication Business

Groupmeet the demand of law

26 Fork Lift Truck Driving Operations 18 Internal TrainingChinese Crane & Elevator Associ-

ationmeet the demand of law

27 2015 Labor Safety and Health Training 6 Internal Training Processing Division meet the demand of law

28 Occupational Safety and Health Training 16 Internal TrainingRF Quality Assurance Dept., High-

Tech Development Divisionmeet the demand of law

29 Occupational Safety and Health General Training 2 Internal Training Automobile Manufacturing Division meet the demand of law

30 Hazardous Substance Training 4 Internal Training Automobile Manufacturing Division meet the demand of law

31 Occupational Safety and Health, Firefighting, and Rescue Training 12 Internal TrainingOptical Communication Business

Groupmeet the demand of law

32 Occupational Safety and Health Training 9 Internal Training RF R&D Dept. meet the demand of law

33 Rescue Personnel On-the-Job Training 3 External TrainingChina Safety Health Management –

Jiayi Occupational Training Centermeet the demand of law

34General Occupational Safety and Health Management Personnel and Sales Supervisor

On-the-Job Training7 External Training China Productivity Center meet the demand of law

35 Class A Labor Safety and Health Operation Supervisors – On-the-Job Training 8 External TrainingDepartment of Labor, Taipei City

Governmentmeet the demand of law


Care for EmployeesThe statistics and disclosure of the number of employ-ees provide insight to the methods of human resource arrangement and the commercial model of the orga-nization for the company in the implementation of the overall strategies. Such figures also present employee work stability and the welfare level provided by the orga-nization to employees. The subcategories also present the gender distribution within the organization, using existing labor force and talents to design and arrange for human resources. The total number of company em-ployees is 467 people, who are divided by employment contracts and gender. All employees are full-time em-ployees and are entitled to all labor welfare specified by Taiwan’s Government. In particular, 220 people are male employees and accounting for 47% and 247 people are female employees and accounting for 53%. The scope of the above statistics is the December 31st, 2015 end of year report period. The regions of statistics include Taipei operating headquarters and Beitou Plant, Taipei Tamsui Shanda Plant, Taipei Tamsui –Mangrove Plant, Jiayi Dalin Plant, and excluding the China Subsidiary Ningbo Plant and the operating area of EZconn technol-ogies CZ s.r.o., or the number of workers in the supply chain.

▼ Total number and proportion of new and resigned employees by age groups, gender, and region during the report period

Major Category Subcategory Male Female Subtotal

Total number of

personsProportion

Total number of

personsProportion

Total number of

personsProportion

New employees

Under 30 years old 21 5% 16 3% 37 8%

31~50 years old 19 4% 7 2% 26 6%

50 years and older 2 0.4% 0 0% 2 0.4%

Subtotal 42 9% 23 5% 65 14%

Employees Resigned

Under 30 years old 12 3% 12 3% 24 5%

31~50 years old 11 2% 7 2% 18 4%

50 years and older 4 0.9% 1 0.2% 5 1%

Subtotal 27 6% 20 4% 47 10%


60%of employees come from the neighboring communities, boosting the employment opportunities for the local areaThere are 278 employees of the company who are reg-istered to households in the neighboring communi-ties, accounting for 60% of total employees. The figure reflects the corporate operations and activities with specific boosting of local economic prosperity and employment opportunities. In the future the company will further disclosure the service seniority of employ-ees and the vision and commitment to co-establish the sustainable management and development with local employees. Moreover, the ratio of employing local res-idents for senior management in key operating offices is 100%. The senior management is defined as the pres-ident and chairman, who are both local residents. The geographic definition of “local area” refers to Taiwan. The key operating offices refer to the Taipei operating headquarters and Beitou Plant, Taipei Tamsui-Shanda Plant, Taipei Tamsui –Mangrove Plant, and Jiayi Dalin Plant. The company selects personnel for senior man-agers based on the principles of local employment, which act will facilitate the prosperity development of local communities while the localization of the manage-ment team will strengthen human capital and improve the quality of local talent.

▼ Statistics of Number of Workers with Household Registration in the Neighborhoods

Office Address

Number of plant em-

ployees (unit: persons)

Number of employees and percentage of household

registration in neighborhood communities

Note: Definition of neighbor-ing areas

Taipei Operating Head-quarters and Beitou Plant

No. 10, No. 12, Ln. 1212,

Lide Ro., Beitou Dist.,

Taipei City

229 122 53%

Employees with household

registration in Shilin, Datung

and Beitou District of Taipei

City

Taipei Tamsui Shanda Plant

No. 380, Sec. 3, Danjin

Rd., Tamsui Dist., New

Taipei City

139 93 67%


registration in Beitou, Tamsui,

Bali and Sanzhi District of

Taipei City

Taipei Tamsui Man-grove Plant

2F, 26F, No. 27-3, Sec.

2, Zhongzheng E. Rd.,

Tamsui Dist., New Taipei

City

82 46 56%


registration in Beitou, Tamsui

and Bali District of Taipei City

Jiayi Dalin Plant

No. 115, Zhongzheng

Rd., Dalin Township,

Jiayi County

17 17 100%


registration in Jiayi County

and Jiayi City

Total 476 278 60%


Employee Remuneration and Pension Funds PlanFor the key operating offices of the company, the stan-dard salary for entry-level personnel by gender will receive 100% or higher salary than the local minimum salary with the salary policy executed in accordance with the local government laws and regulations. The so-called key offices include Taipei Operating Headquar-ters and Beitou Plant, Taipei Tamsui Shanda Plant, Tai-pei Tamsui –Mangrove Plant, and Jiayi Dalin Plant. The above data exhibit the competitiveness of the company salary and the boosting of prosperity in the local labor market, establishment of robust community relations, enhancement of employee loyalty and the increase of social identify of the organization in local operations.

The company offers explicit retirement plant to em-ployees, which will facilitate the attraction of talent and maintenance of stability in the employee team, who will effectively support the company’s long-term opera-tional strategy plan. The company’s employee welfare fees include the welfare fees after retirement, insur-ance premium and other employee welfare fees. The 2015 employee welfare was NTD $788,265,000 for 2015, NTD $702,034,000 for 2014, and NTD $583,358,000 for 2013. Before July 1st, 2005 the company appropriated labor pension reserve to deposit into a special account within the Bank of Taiwan in accordance with the “Labor Standard Act.” Starting from July 1st, 2005 the new la-bor pension system was implemented and pursuant to the “Labor Pension Act,” no less than 6% of the work-er’s monthly salary shall be appropriated to the labor pension fund account and the company shall process

pension related matters in accordance with the “Labor Standard Act” and “Labor Pension Act.” The pension fund system of “Labor Pension Act” applies to employ-ees of Taipei Operating

Headquarters and Beitou Plant, Taipei Tamsui-Shanda Plant, Taipei Tamsui –Mangrove Plant, and Jiayi Dalin Plant, and 5% of the monthly salary of the employees will be appropriated to the personal pension fund account of the Labor Insurance Bureau each month accordingly.

The payout of employee pension funds is calculated by the seniority of service and the average salary of the 6 months prior to approval of retirement. The employee pension funds are deposited into the special account within the Bank of Taiwan under the Supervisory Com-mittee of Labor Retirement Reserve of Ezconn Corpo-ration. The Bureau of Labor Funds, Ministry of Labor invests the program assets on the domestic (foreign) equity securities and debt securities as well as bank deposits through independent utilization or commis-sioned management. Nonetheless pursuant to the provisions prescribed in the Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund, the minimum proceeds of annual al-location of resolution for the use of labor pension funds may not be lower than the proceeds calculated by the 2-year time deposit interest rate of local banks.

Employee Welfare

The company welfare measures are divided into com-pany welfare measure and the welfare measures of employees’ welfare committee. The welfare measures offered by the company includes charity leave, materni-ty company leave, salary account preference, employee bonus, on-the-job advanced study, employee pensions, business trip insurance, end-of-year party and annual bonuses. To provide convenient and safe meals in com-pliance with safety and health standards, the company offers an employee restaurant and selects quality cater-ing supplier to provide the services. Moreover a healthy and nutritious menu is designed by professional nutri-tionists while qualified chefs cook and prepare fresh, delicious and nutritious lunch and dinner. The contract prescribes that only the source of certified meat, fresh fruit and vegetable is used to maintain the food safe-ty of employees. In consideration of current consum-er price level and burden on employees, the company pays for the majority of catering costs while employees only need to pay NT20 per meal. Compared with the av-erage lunch box in Taipei City, the employees can save 80% per meal. The company expects to solve the din-ing problems for employees so that employees can eat safely and healthily at an affordable price.



Maintain human rights and protect employees’ rightsThe company believes that all employees, regardless of be-ing a Taiwan National or non-national, male or female, and persons with different positions, all shall be given equal and prestigious treatment and shall sign the employment agree-ment in conformance with the “Labor Standard Act.” Mean-while the company expects all employees to comprehend that it is their right to work in a fair and ethical environment. Based on this concept, the company is committed in the true compliance of basic human rights and practice of the-ory of justice through standardized process. The company not only implements the valuation on human rights issues in Taipei Operating Headquarters but also expanding to over-seas offices. For major investment agreements in Taiwan or abroad, the company fully complies with the local labor acts and regulations as well as human right clauses. The company assures the conformance to human rights and justice for all labor regulations and labor management without any major incidents of human right invasion, including non-discrimina-tion, no discovery of any operating office in possible violation or serious jeopardy of freedom to assembly and collective bargaining, no discovery of operating office use of child labor, no discovery of sexual harassment incidents, or operating of-fices with compulsive or forced labor incident risks during the report period.

Moreover, the Employee Welfare Committee and employee complaint box has been established while the company also operates the labor-management meeting, Supervisory Com-mittee of Labor Retirement Reserve, Occupational Safety & Health Committee accordingly. The employees can acquire fair and reasonable treatment for the various rights through the aforementioned channels. The labor-management re-

lation of the company is in harmonious relation and in spite of the 5 records of reconciliation due to labor-management disputes, both parties have reconciled well.

Collective bargaining strengthens the labor-management communication

The company understands that freedom of assembly is the key human right indicator of international declaration and covenant standards. Collective bargaining is a key form of stakeholder engagement, which is highly related to the GRI G4 report guidelines. Such stakeholder engagement prac-tice contributes to the establishment of system framework and maintenance of social stability. Collective bargaining and corporate governance constitute to part of the overall structure, which also helps the promotion of management with more responsibility. The parties can utilize this collective bargaining to strengthen the collaboration and labor-man-agement communication, thereby expanding the positive impact of the organization on society. The employee percent-age protected by collective bargaining agreement can most directly reflect the conducts of freedom of assembly for the organization. The total employee percentage protected by collective bargaining agreement is 100% while the records of collective bargaining signed by the labor-management meet-ing are safeguarded by the Human Resource Department of the company.

Gender Equality Workplace

According to the provisions prescribed in the “Act of Gender Equality in Employment,” the company employees can apply

for parental leave without pay when they have worked in the company for 6 months and before their children reach the age of 3. The relevant statistics compiled by gender during the report period are shown below:

▼ Statistics of Number of Workers with Household Registration in the Neighborhoods

a. Total number of employees taking parental leave in 2015

The number of qualified employees for parental leave without pay in 2015: 36 people, consisting of 15 male and 21 qualified female for parental leave without pay.

b. Total number of employees to be reinstated in 2015

2 female

c. The real number of employ-ees reinstated in 2015

1 female

d. The real number of employ-ees reinstated in 2014

4 females

e, The number of employees still working in 12 months after taking the parental leave and reinstatement in 2014

4 females

f, The ratio between reinstated and retained employees after taking the parental leave.

Reinstatement rate (c/b *100%)

Reinstatement rate: Female reinstatement rate 50%.

Retention rate: Female reten-tion rate 100%.



Employee TrainingThe key factor to the company’s future development is the effective maintenance and improvement of human capital. Well-planned training program can enhance employee’s knowledge and work skills with the investment of massive re-sources, and the scale of training implementation will assure the coverage of educational training on all employees. The company offers a diversity training course and on-the-job ed-ucation, including training for new employees, an on-the-job training course, and various internal training or outsourced courses related to occupational professionalism. Divided by gender and employee category, the 2015 male employees re-ceived average annual training hours of 29 hours per person while female employees received average annual training hours of 17 hours per person. The employees are implement-ed with performance appraisals routinely while the employee ratio of receiving official performance appraisal and occupa-tional development assessment during the report period is 100%. Moreover, to strengthen the employees with continu-ous employment capacity, the company will organize func-tion management programs in the next report period in order to recruit employees with higher professional competency and wider range of knowledge through internal recruitment, who will serve as the internal training instructors. Employees are expected to improve their capacity to implement objec-tive and strategies in a varying work environment.

▼ Average Hours of Training Received by Each Employee Each Year by Gender in 2015

Total hours of training

Number of people

Average training hours

received

Male 6,321 220 29

Female 4,152 247 17

Employee Diversity and Equality

The 467 employees of the company are all full-time employ-ees according to the employment contract, where 220 males account for 47% of total employees and 247 females account for 53% of the total employees. For the division of functions, 61 male employees serve as supervisors and accounts for 13% of the total employee ratio while 31 female employees serve as supervisors, accounting for 7% of the total employ-ees. 150 male employees work in technical positions, in-cluding engineers, technicians and operators, who account for 32% of all employees. 139 female employees work in the technical position and account for 30% of total employees. 9 male employees serve administrative jobs including admin-istrators, specialists and assistants, accounting for 2% of the total employees. 77 female employees work in administra-tive work and account for 16% of total employees. From the

perspective of same pay for sale work, the company does not show any discrepancy on the base salary between the female and male workers and determines the salary payout standards according to the local government regulations and the determination by education and experience. Based on the observation of female labor participation, the 247 female employees of the company account for 53% of total employ-ees, which outnumbers male employees. The company has not met the statuary standards of employing physically and mentally disabled. The company shall pay the pension and will continue to improve in the future.


▼ Employee Composition Statistics by Gender, Age, Indigenes, and Diversity Indicator

Major Category Subcategory Male Female Subtotal

Quantity Ratio Quantity Ratio Quantity

By Function

Supervisor 61 13% 31 7% 92

Technical: including engineer, technician, operator 150 32% 139 30% 289

Administrative: including administrator, specialist and

assistant9 2% 77 16% 86

Subtotal 220 47% 247 53% 467

By Age

Under 30 years old 43 9% 43 9% 86

31~50 years old 142 30% 165 35% 307

51 years or older 35 7% 39 8% 74

Subtotal 220 47% 247 53% 467

By Minority GroupIndigenous 1 0.2% 1 0.2% 2

Non-Indigenous 219 47% 246 53% 465

Subtotal 220 47% 247 53% 467

By physical and

mental disability

Physical and Mentally Disabled 2 0.4% 1 0.2% 3

Non-Physical or Mentally Disabled 218 47% 246 53% 464

Subtotal 220 47% 247 53% 467

By Nationality

Taiwan National 208 45% 225 48% 433

Vietnam 6 1% 22 5% 28

Thailand 6 1% 0 % 6

Subtotal 220 47% 247 53% 467


Social ParticipationTaipei Operating Headquarters and Beitou Plant, Taipei Tam-sui-Shanda Plant, Taipei Tamsui Mangrove Plant have execut-ed engagement with local community engagement, impact evaluation, and development plant, which accounts for 50% of the total operations. The company exchanges informa-tion with the village heads through evaluation and planning to understand the expectation and demand from the local community residents, and thereby develops the community development plan in conformity with the local community requirements. Meanwhile the company engages with stake-holders to develop the community charity plan by adopting the Zhongyi Pedestrian Underpass in Beitou District, located between section 4, Zhongyan N. Rd. of Beitou Distrct, and Ln. 121 of Lide Rd. The human resource department is the man-agement department.

The adoption is carried out in accordance with the provisions prescribed in “Taipei City Pedestrian Adoption, Pedestrian Underpass Adoption and Pedestrian Overpass Adoption” from the New Construction Office, Public Works Department, Taipei City Government accordingly. The period of adoption is 3 years with the scope of adoption including maintenance of the pedestrian underpass and the cleaning of various facil-ities and peripheral of the exit. The company shall be respon-sible for removal of any improper graffiti and shall gently ask homeless people or booth owners to leave. In some cases it is necessary to report to the Guandu Police Office. In addition, the plantation requires proper water sprinkling and the hall-way lighting also requires maintenance.

Industry-University Collaboration

The company signed industry-university collaboration with St. John’s University and Taipei City University of Science and

Technology, in 2015. During the report period, a total of 9 en-rolling students were employed, consisting of 3 students from St. John’s University and 6 students from Taipei City Univer-sity of Science and Technology. These employees received the same welfare as full-time employees without preferential treatment. Industry-university collaboration is an education-al program with educational, economic and social benefits. School, students and business divisions participating in the industry-university collaboration are the three stakeholders who can acquire maximum benefits from the collaboration. The company can also acquire talents to fulfill the gap in job functions. For the school and students, they can acquire the information on demand for employment market while still enrolled in school, develop professional skills in advance and learn to apply their skills and acquaint themselves with career planning, interest and objectives early.

Response to Blood Donation and Charity Campaigns

Blood donation is one meaningful social charity event. The company employees voluntarily go to the nearby Guandu Blood Donation Center to participate in a blood donation charity campaign. The employees are very enthusiastic in responding to the event but also advo-cate the concept of blood donation in the company. The employees encourage each other and show their love by donating blood to help others. A total of 22 people participated in the campaign and donated a total of 5,500cc in 22 bags during the report period.


Appendix A BSI Appendix assurance statement


Appendix B GRI G4 Index

GRI G4 Index

Indicato

NumbersIndicator Description

Disclosure

StatusPage(s)

G4-1Provide a statement from the most senior decision-maker of the organization (such as CEO, chair, or equivalent senior position) about the relevance of sus-

tainability to the organization and the organization’s strategy for addressing sustainability.3-4

G4-2 Provide a description of key impacts, risks, and opportunities. 3-4

G4-3 Report the name of the organization. ● 5-10

G4-4 Report the primary brands, products, and services. ● 5-10

G4-5 Report the location of the organization’s headquarters. ● 5-10

G4-6Report the number of countries where the organization operates, and names of countries where either the organization has significant operations or that are

specifically relevant to the sustainability topics covered in the report.● 5-10

G4-7 Report the nature of ownership and legal form. ● 5-10

G4-8 Report the markets served (including geographic breakdown, sectors served, and types of customers and beneficiaries). ● 5-10

G4-9 Report the scale of the organization. ● 5-10

G4-10 Report the total workforce contract and gender. ● 48

G4-11 Report the percentage of total employees covered by collective bargaining agreements. ● 45

G4-12 Describe the organization’s supply chain. ● 32

G4-13 Report any significant changes during the reporting period regarding the organization’s size, structure, ownership, or its supply chain. ● 9-10

G4-14 Report whether and how the precautionary approach or principle is addressed by the organization. ● 25-31

G4-15List externally developed economic, environmental and social charters, principles, or other initiatives to which the organization subscribes or which it

endorses.● 33

G4-16 List memberships of associations (such as industry associations) and national or international advocacy organizations. ● 5-10

G4-17List all entities included in the organization’s consolidated financial statements or equivalent documents.

Report whether any entity included in the organization’s consolidated financial statements or equivalent documents is not covered by the report.● 18

G4-18Explain the process for defining the report content and the Aspect Boundaries.

Explain how the organization has implemented the Reporting Principles for Defining Report Content.● 10-12

G4-19 List all the material Aspects identified in the process for defining report content. ● 10-12

● Covered in the report ◒ Partially covered in the report


GRI G4 Index

Indicato


Disclosure

StatusPage(s)

G4-20 For each material Aspect, report the Aspect Boundary within the organization. ● 10-12

G4-21 For each material Aspect, report the Aspect Boundary outside the organization. ● 10-12

G4-22 Report the effect of any restatements of information provided in previous reports, and the reasons for such restatements. ● 10-12

G4-23 Report significant changes from previous reporting periods in the Scope and Aspect Boundaries. ● 10-12

G4-24 Provide a list of stakeholder groups engaged by the organization. ● 13-14

G4-25 Report the basis for identification and selection of stakeholders with whom to engage. ● 13-14

G4-26Report the organization’s approach to stakeholder engagement, including frequency of engagement by type and by stakeholder group, and an indication of

whether any of the engagement was undertaken specifically as part of the report preparation process.● 13-14

G4-27Report key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and

concerns, including through its reporting. Report the stakeholder groups that raised each of the key topics and concerns.● 13-14

G4-28 Reporting period (such as fiscal or calendar year) for information provided. ● 2

G4-29 Date of most recent previous report (if any). ● 2

G4-30 Reporting cycle. ● 2

G4-31 Provide the contact point for questions regarding the report or its contents. ● 2

G4-32* Report the ‘in accordance’ option the organization has chosen. ● 2

G4-33* Report the organization’s policy and current practice with regard to seeking external assurance for the report. ● 2

G4-34 Report the governance structure of the organization. ● 16

G4-56 Describe the organization’s values, principles, standards and norms of behavior such as codes of conduct and codes of ethics. ● 16

G4-EC1 Direct economic value generated and distributed ● 18

G4-EC3 Coverage of the organization’s defined benefit plan obligations ● 18

G4-EC5 Ratios of standard entry level wage by gender compared to local minimum wage at significant locations of operation ● 43

G4-EC6 Proportion of senior management hired from the local community at significant locations of operation ● 48

G4-EC8 Significant indirect economic impacts, including the extent of impacts ● 25-31

G4-EN3 Energy consumption within the organization ● 23



GRI G4 Index

Indicato


Disclosure

StatusPage(s)

G4-EN6 Reduction of energy consumption ● 23

G4-EN7 Reductions in energy requirements of products and services ● 25-31

G4-EN8 Total water withdrawal by source ● 23

G4-EN16 Energy indirect greenhouse gas (GHG) emissions (scope 2) ● 23

G4-EN19 Reduction of greenhouse gas (GHG) emissions ● 23

G4-EN23 Total weight of waste by type and disposal method ◒ 24

G4-EN24 Total number and volume of significant spills ● 24

G4-EN27 Extent of impact mitigation of environmental impacts of products and services ● 25-31

G4-EN29 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations ● 24

G4-EN31 Total environmental protection expenditures and investments by type ● 24

G4-EN32 Percentage of new suppliers that were screened using environmental criteria ● 20

G4-LA1 Total number and rates of new employee hires and employee turnover by age group, gender and region ● 48

G4-LA2 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by significant locations of operation ● 43

G4-LA3 Return to work and retention rates after parental leave, by gender ● 45

G4-LA5Percentage of total workforce represented in formal joint management–worker health and safety committees that help monitor and advise on occupational

health and safety programs◒ 45

G4-LA6 Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities, by region and by gender ◒ 34

G4-LA9 Average hours of training per year per employee by gender, and by employee category ◒ 47

G4-LA11 Percentage of employees receiving regular performance and career development reviews, by gender and by employee category ● 47

G4-LA12Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and

other indicators of diversity● 48

G4-LA13 Ratio of basic salary and remuneration of women to men by employee category, by significant locations of operation ◒ 43

G4-HR3 Total number of incidents of discrimination and corrective actions taken ● 45

G4-SO1 Percentage of operations with implemented local community engagement, impact assessments, and development programs ● 49



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2 | EZconn 2015 CSR Report conn_CSR_report_20161130/CSR_report... · 2016-12-02 · 2 | EZconn 2015 CSR Report ... The report covers the period from January 1, 2015 to De - cember