2015 Namchow of & FD Seminar: Summer Dessert
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NAMCHOW 2015 Corporate Social Responsibility Report 2 About the Report 4 Message From the Chairman Table of Content Table 7 Summary of Key CSR Performance 2015 8 Identification of Material Issues 12 External Communication and Engagement 22 Being aware of changes - Business Governance 23 1.1 Corporate governance 28 1.2 Sustainable business strategy 33 1.3 Integrity and risk management 36 Adapting to changes - Environmental Protection 39 2.1 Climate change and energy/carbon reduction 44 2.2 Environmental management and care for the nature 51 Striving for changes - Quality Products 53 3.1 Product responsibility and control 61 3.2 Product traceability management 73 3.3 LOHAS products 79 Delivering consistent value - People Value 81 4.1 Customer communication and society care 96 4.2 Recruitment & Development 105 4.3 Healthy work environment 110 List of GRI G4 Indicators 119 Auditor’s Opinion 2015 Corporate Social Responsibility Report About the Report “Namchow Corporate Social Responsibility Report 2015” is the second report published by Namchow Chemical Industrial Ltd. (hereinafter referred to as “Namchow Group,” “the Company,” or “we”) following the first report dated December 2015. Through this report, we hope to convey the sustainability strategy and performance of Namchow Group, and maintain sound communication with stakeholders as we take step towards realizing our vision towards sustainability. In the future, we hope to realize our growth targets by incorporating sustainability into of our plan. Scope and boundary of report The scope of this report has been determined based on materiality in reference to the boundary of disclosure of the consolidated financial statements. The boundary of non-financial information has been expanded outside Taiwan to cover China for the very first time. This new boundary of disclosure now accounts for 88% of revenues generated by Namchow Group. Information and statistics presented in this report cover all above business locations for the year of 2015 (2015/01/01 to 2015/12/31), with respect to environmental, social and corporate governance performance. In the future, Namchow Group will continue to include overseas operations into its CSR report, in order to present readers with a more comprehensive view about Namchow Group’s CSR performance. Although the boundary of this report has been expanded from the previous report, most of the performance statistics are still being disclosed separately to facilitate comparison with previous year’s figures. Any changes to the scope or basis of calculation will be explained in footnotes. Taoyuan Factory (Oil & Fat, Ice Cream, and Home Product), ChungLi Factory (Frozen Noodle, Frozen Dough, and Aseptic Taiwan cooked rice), Tainan Factory (Ice Cream), Gastronomy business (Chinese and western cuisine), Functional units Tianjin Factory (Oil & Fat, Whipping Cream, and Frozen Dough), China Guangzhou Factory (Oil & Fat), BLN Restaurants & Caterings (Chinese and western cuisine), Functional units Reporting guidelines and external assurance This report has been prepared in accordance with the latest version of Global Reporting Initiative (GRI G4: The G4 Sustainability Reporting Guideline), and comprises of Core Disclosure and Food Processing Sector Disclosures. Namchow Group has included food safety-related information into the abovementioned boundary in response to the 7 additional disclosures that Taiwan Stock Exchange Corporation has requested from public-listed food manufacturers. “KPMG” has been appointed by the Company to provide limited assurance for the 7 additional disclosures mentioned above (as shown in p.117), and both parties agreed to proceed in accordance with Statement of Assurance Standards No. 1 - “Assurances other than audit or review of historical financial information” published by Accounting Research and Development Foundation. The assurance report has been presented as an appendix to this CSR report. 2 About the Report Time of publication Namchow Group has complied with Taiwan Stock Exchange Corporation’s “Rules Governing the Preparation and Filing of Corporate Social Responsibility Reports by TWSE Listed Companies” by publishing previous year’s corporate social responsibility report on its website before December 31 of the current year. The previous report was published in December 2015. Contact information Contact window: Executive Secretary Unit, CSR Committee Headquarter address: No. 100, Section 4, Yanping North Road, Taipei City 10376 TEL: 886 (2) 2535-1251 Website: http://www.namchow.com.tw Notice to readers This English version 2015 Corporate Social Responsibility report is a summary translation of the Chinese version. If there is any discrepancy between the English version and Chinese version, the Chinese version shall prevail. 3 2015 Corporate Social Responsibility Report Message From the Chairman Namchow Group Chairman Namchow moves forward through times by being aware of changes, adapting to changes, striving for changes, and delivering consistent value Namchow has long been persistent about business integrity and consumer rights since it was founded in 1952. Over the decades, our focus on our core business activities and devotion to producing the safest products have earned the Company its distinctive reputation. Our competitiveness lies in our ability to anticipate political, economic and market changes, and find ways to make our business sustainable. Everyone from senior management to entry- level employees are expected to know, pursue and respond to changes, and contribute one way or another to corporate social responsibilities by way of product development, stakeholder communication, environmental protection, charity, or development of corporate culture. 1. Being aware of changes – By strengthening the corporate structure and building new mechanisms as responses to the changing business landscape Namckow has been anticipating political and economic changes more than 20 years ago when it first prepared for its entry into the ASEAN markets back in 1989. Namchow Thailand literally started from scratch, and the hardware and software investments made at that time were all 4 Message From the Chairman part of a visionary plan. 2016 marked the 20th anniversary of Namchow China, whose three production sites (Tianjin, Guangzhou and Shanghai Jinshan) bore witness to how technology has evolved over time. In order to “know changes,” one must have adequate knowledge about the market and the ability to prepare for changes. Only then may we keep up with the rest of the world and deliver multi-win solution for customers, consumers, industry participants, the society, and Namchow itself. In 2015, Namchow officially assembled a Corporate Social Responsibility Committee specifically for addressing issues that pose concern to stakeholders, and for the purpose of implementing Namchow’s sustainability policy. Furthermore, as a means to enhance corporate governance and diversify members of the board, a resolution was passed during shareholder meeting to elect two independent directors with immediate effect. Regardless of how the environment changes, we shall commit to our transformation, service and ongoing communication and realize them as part of our corporate social responsibilities to bring mutual benefits for our stakeholders. 2. Adapting to changes – By looking for environmental protection and sustainability, as responses to climate change and global warming Extreme weathers caused by the greenhouse effect have fueled an uprise of environmental protection awareness all over the world. Faced with drastic changes in the external environment, businesses must learn to adapt in order to stay in business. Namchow’s Crystal Soap is a classic example of how the Company has adapted to changes. For more than 50 years, the brand remains relevant in the cleaning agents market because of its persistence in using natural Oil & Fat in the production process. By avoiding damage to the environment, the product was honored with “National Brand Yushan Award”! In 2014, Namchow’s grapefruit seed handsoap series was named “Recommended Product for Disease Prevention” by Centers for Disease Control. Both products are testaments to how Namchow has accepted consumers’ health as part of its responsibilities. Construction of Shanghai Jinshan Factory in 2015 incorporates advanced technologies that will improve overall energy efficiency and bring environmental protection benefits. The project was granted industry transformation and upgrade subsidies totaling RMB 18.67 million by Shanghai City Government. Meanwhile, Tianjin Factory also managed to reduce energy per unit of output by 5‰ as it had promised to TEDA’s Energy Office. We became a member of Roundtable for Sustainable Palm Oil (RSPO) since 2011, where we made good on our commitment to the environment by contributing to sustainable palm oil production and eliminating acts of deforestation throughout the palm oil supply chain. 3. Striving for changes – By focusing on niche markets, developing new products and implementing food safety management mechanisms Bringing top quality products to consumers has long been Namchow’s conviction. Amongst the top-quality products we have made were Cooked Rice and Cooked Rice with Barley and Oat, which won Top Ten GOOD Products and 12th National Brand Yushan Award, respectively, in 2015. In view of consumers’ rising awareness towards healthy and natural ingredients, Namchow has directed its resources toward developing natural products that are free of preservatives, coloring,