Table of Contents About This Report 2 A Sustainable Producer that Prospers with the Environment Retrospect and Outlook of Sustainability 3 Strategies 4 3.1 Environmental Management Policy 86 ﾠ Key CSR Performance of CCPG in 2019 6 3.2 Response to Climate Change 89 ﾠ 3.2.1 Energy Conservation and Carbon ﾠ Reduction Action 89 A Diligent, Pragmatic, and 3.2.2 Greenhouse Gas (GHG) Emissions Integrity-Oriented Enterprise ﾠ 1 Management 94 1.1 About CCPG 10 3.2.3 Climate Change Adaptation 96 ﾠ ﾠ 1.1.1 Current State of Group Operations 10 3.3 Water Cycle and Management 99 ﾠ ﾠ 1.1.2 Product Introduction and Location 3.3.1 Water Management 100 ﾠ of Operation 11 ﾠ 3.3.2 Wastewater Management 103 1.1.3 Operating Performance 14 ﾠ ﾠ 3.4 Emissions Management 106 1.2 Corporate Governance and Sustainability 15 ﾠ ﾠ 3.4.1 Air Pollutant Emissions Management 106 1.2.1 Corporate Governance 16 ﾠ ﾠ 3.4.2 Waste Management 110 1.2.2 Risk Management 17 ﾠ ﾠ 1.2.3 Sustainable Strategy 20 ﾠ 1.3 Stakeholder Communications 32 An Enterprise that Creates a ﾠ 4 Friendly Workplace 4.1 CCPG Talents 114 ﾠ 4.1.1 Human Resource Policy 114 Trusted Material Supplier ﾠ 2 4.1.2 Talent Composition 115 ﾠ 2.1 Momentum of CCPG Products 44 4.2 Talent Cultivation and Development 119 ﾠ ﾠ 2.1.1 Green Processes and Products 44 4.3 Employee Care and Benefits 125 ﾠ ﾠ 2.1.2 Chemical Management 50 4.3.1 Employee Benefits 125 ﾠ ﾠ 2.1.3 Product Quality Management 52 4.3.2 Healthy Workplace 130 ﾠ ﾠ 2.1.4 Customer Communications and ﾠ Services 55 2.2 Responsible Chemistry 58 ﾠ 2.2.1 Workplace Safety 58 ﾠ 2.2.2 Process Safety 65 A Creator of Value for All ﾠ 5 2.2.3 Response and Management of ﾠ Major Incidents 69 5.1 Promoting Healthy Lives And Well-being ﾠ For Human Beings 138 2.3 Sustainable Supplier Management 75 ﾠ 5.2 Cultivating Chemical Professionals 141 2.3.1 Procurement Business Ethics and ﾠ ﾠ Respect of Human Rights 76 5.3 Strengthening Industrial Environment ﾠ 2.3.2 Supplier Management System 77 Safety And Health 142 ﾠ 2.3.3 Legal Compliance and Local Care 81 5.4 Integrating Community Capital and ﾠ ﾠ 2.3.4 Green Procurement and Circular Communication 143 ﾠ Economy 82 GRI Standards Indicator Reference Table 146 CCGP 2019 CSR report CCP About this Report This Report is an extension of CCPG's commitment to sustainable development in 2018. CCPG aims Report Compilation and Audit to be "a diligent, pragmatic, and integrity-oriented enterprise," "a trustworthy material supplier," "a sustainable producer that prospers with the environment," and "an action taker in creating a friendly This Report is compiled with information provided by CCPG’s CSR Executive Secretariat, four CSR task forces, all departments workplace." The contents of social engagement are detailed in an independent chapter titled "a creator under the Taipei Executive Board, all Taiwan-based factories, and six foreign factories. To ensure that the report is accurate About this Report of value for all" in 2019 to express CCPG's active creation of social value and mutual prosperity with and meets stakeholders’ expectations, all content was approved by CCPG’s CSR Committee before its official release. society. CCPG discloses its implementation of corporate social responsibilities in 2019 in this Report to Report Compliance Standards domestic and foreign stakeholders as we join hands in creating a sustainable future. The contents and structure of the report are based on the GRI Standards published by the Global Sustainability Standards Board (GSSB). The information disclosure of relevant content indexes is carried out based on the Core Options, fully Retrospect illustrating CCPG's material issue management policies and implementation performance in Economic, Environmental, and and Outlook of Report Scope and Boundary Sustainability Social Issues. Strategies CCPG established the Executive Board in 2014, with the collective Group name CCPG created by the merging of Chang Chun Plastics Co., Ltd. (CCP), Chang Chun Petrochemical Co., Ltd. (CCPC), and Dalian Chemical Industry Co., Ltd. (DCC). The scope and boundary of this Report include CCPG’s Taipei Head Contact Office, all Taiwan-based factories, and six CCPG foreign production factories. Please refer to 1.1.1 Key CSR Feel free to contact us if you have any questions regarding the contents of the Report. Performance of Company Profile for detailed information. CCPG in 2019 CCPG's Corporate Social Responsibility Executive Secretariat Poya, Juang, General Manager, and Ko-Tieh, Chang Address: 9F, No. 301, Songjiang Road., Taipei City 104, Taiwan Reporting Period and Issuance Date Tel.: +886 2-7743-1506; +886 2-7743-1523 E-mail: [email protected] Chapter 1 CCPG shall regularly publish its Corporate Social Responsibility Report for the previous year each year. A Diligent, Pragmatic, and Integrity- The previous report was published in June 2019 and the current "Chang Chun Group 2019 Corporate Oriented Enterprise Social Responsibility Report" is published in May 2020, covering the disclosure period of January 1, 2019 to December 31, 2019. To demonstrate trends in changes each year, certain information in this Report includes statistics in the past 3 years (since 2017). The scope of disclosure of other statistics and information that differ from the aforementioned scope shall be specified in the chapters. Chapter 2 Trusted Material Supplier Chapter 3 A Sustainable Producer that Prospers with the Environment Chapter 4 An Enterprise that Creates a Friendly Workplace Chapter 5 A Creator of Value for All 2 3 CCGP 2019 CSR report CCP Retrospect and Outlook of Sustainability Strategies The core value of "people-oriented" Innovative momentum in the business value chain About this Report Enterprises' focus on CSR has reflected the enterprises' own core value. The ultimate goal of economic Innovation, R&D, and technological independence are CCPG's firm beliefs. With the changes in the global industrial pattern and political policy development, and even the 2000 UN Global Compact currently complied with and the economic structure, CCPG continues to invest huge R&D resources in the production of plywood, textile chemicals, by major global enterprises and organizations are all aimed at improving the living space based on and high-value products. In 2019, the investment in R&D alone accounted for 4% of the Group's net profit before tax, and "people" and at allowing the social environment constructed by complex economic behavior patterns the cumulative number of patents obtained during the period reached 903. In response to the frequent occurrence of to gain more prospects for protection and progress. Therefore, in addition to innovation, profitability, extreme climate events in the world in recent years, the Group introduced the Task Force on Climate-Related Financial Retrospect and Outlook of and sustainable management, "people" are the most invaluable resource valued by CCPG. Disclosures (TCFD) in 2019 to identify risks and examine opportunities for the business while analyzing risks as a reference Sustainability Strategies for formulating early response strategies. Over the years, CCPG has been committed to building a friendly workplace: advancing both employee salary and the welfare system and promoting work-life balance. In addition to strengthening In addition, the Group attaches great importance to internal and external innovation cooperation, actively engages in employee welfare, promoting physical and psychological health care, the Group makes better use industrial-academic cooperative development and strategic partnership alliances, and takes green chemistry, process of the resources of each factory, actively cooperates with local government policies, and provides a enhancement, and biomass raw materials as the R&D direction, to help the Group develop new products with high added great deal of assistance to the local community. In 2019, the number of local employees at various value. Enhancement of the core technology of the existing products and optimization of the current processes. The Group Key CSR domestic factories in the Group accounted for more than 70% of the total. During the period, more even combines its own professional technologies to balance the impact between production and the environment, to Performance of CCPG in 2019 than 8,286 talent development classes were offered, and the "Self-appropriation of 6% Plus 1% further develop CCPG's influence through high-quality products. New Pension System Reward Project" was launched to motivate employees to pay attention to the planning for retirement life. Furthermore, in order to enhance employees' spiritual growth, the Group event set up the "CCPG Good Mood Hotline." At the beginning of 2020, with the emergence of the Since it was established 70 years ago, CCPG has experienced the SARS storm, financial tsunami, global oil price fluctuations, Chapter 1 COVID-19 epidemic, the Group's all factories were mobilizing all personnel immediately to provide and China-US trade conflicts. Today, due to the impact of the COVID-19 epidemic, various industries are faced with the risk of A Diligent, Pragmatic, and Integrity- environmental disinfection supplies to support local people. production chain disruption; factors, including the collapse of oil prices, international rules, geopolitical reality, and climate Oriented Enterprise change, have added many variables to the future global economic growth. Even with the ups and downs in the evolution CCPG has spared no effort in social care and commitment and responded to the UN Sustainable of the global petrochemical industry, CCPG upholds the concept of establishing a business with integrity and continues Development Goals (SDGs) actively. In 2019, CCPG sponsored 241 social welfare projects at home to grow steadily and continuously.