Taiwan Hon Chuan : CSR Report

2021

Sustainability

Report

Enjoy a Green &

Convenient life.

Our	Stakeholder
Commitments	Engagement	About THC	Products and Services
4	Letter from the Operators	15	Identify Stakeholders	34	Milestones	44	Food Quality/Safety
5	Sustainability Blueprint	16	Stakeholder Communication Channels	36	THC Mission and Vision	51	Supply Chain Management
7	2021 Sustainability Performance		and Issues	37 Strategy and Distribution	55 Client Service
12 Editorial Policy	18	Identify Material Topics	38	Products and Services	58	New Product Development
		31	UN Sustainable Development Goals	40	Industry Chain
				41	Group Financial Performance
				42	Participation in External Organizations

Ethical
Corporate	Green Sustainability	Care and Attention		Appendix
62	Governance Practices	76	Climate Change	94	Workforce Structure	121	GRI Standards Index
68	Risk Management	84	Air Pollution Control	96	Salary and Benefits	130	Third Party Assurance Statement
71	Legal Compliance	85	Water Resources and	102 Occupational Safety	131	TWSE Disclosure Standards Index
72	Economic Performance		Wastewater Management		and Health	78	TCFD Index
73	Information Security	90	Waste Management	113 Talent Development	132	Sustainability Accounting Standards
				116 Social Participation		Board Index
						133	United Nations Global Compact Index

Our Commitments

Letter from the Operators

Sustainability Blueprint

2021 Sustainability Performance

Editorial Policy

Stakeholder

Appendix Attention and Care Sustainability Green Corporate Ethical Services and Products THC AboutCommitments Our

Engagement

Taiwan Hon Chuan Group ESG Report 003

Letter from the Operators 102-14

Due to the persisting COVID-19 pandemic for the past two years, climate change risks and geopolitical conflicts, the macro environment faced many challenges and uncertainties. Despite increasing cost of raw materials and ocean freight, inflation affects the cost of procurement, manufacture, and plant construction. We would like most sincerely to thank the team at Taiwan Hon Chuan continue to work hard to achieve year-on-year growth and strong performance for the Company.

THC actively promotes the aspect of ESG (environment, society, corporate governance). In 2021, we won the Sustainable Partnership for ESG Award from the client and TCSA Enterprise Sustainability Award- sustainability report gold award. In terms of the environment - we are constantly promoting environmental policies with energy conservation, environmental protection, and climate change issues as our focus of implementation. The indicators for power conservation, water saving, air emission and waste reduction have also shown significant improvements. Besides, we passed the Cleaner Production Assessment System of the Green Factory Label. In terms of society - we won the Taichung City Government Happiness Career- Five Stars Award in 2021.

CEO

Tsao, Hsih-Chung

We hope that we will retain more talented people at the Company because this will help us improve the workplace, and we hope that we will become a Company that makes our employees happy and safe. In terms of food safety - we work with our clients to maintain product safety in a proactive manner. We are promoting total quality assurance that meets clients' requirements. In terms of corporate governance - we are constantly promoting ethical corporate management, internal audit, risk management, cyber security, legal compliance, transparent disclosure, and systematic management. At the same time, by utilizing our resources, we continue to participate in social care to give back to society and care for disadvantaged groups to fulfill our corporate social responsibility.

Looking ahead, remaining true to our original aspiration, we will continue to strive towards our enterprise purposes:" acquiring good business reputation, developing global markets, respecting our clients, caring for our employees, and fulfilling our social

responsibilities. " By improving its overall competitiveness and strengthening ESG; Doing

well for "discreetness, carefulness, responsibility, food safety awareness, quality awareness, and environmental awareness"; Maintaining good interaction with stakeholders to become close partners; Working together for the sustainable goals of environmental protection, social participation, and corporate governance to fulfill the expectations of the Company from shareholders, employees, and the community.

Chairman

Dai , Hung-Chuan

Stakeholder

Appendix Attention and Care Sustainability Green Corporate Ethical Services and Products THC AboutCommitments Our

Engagement

Taiwan Hon Chuan Group ESG Report 004

Sustainability Blueprint

Mission：Committed to the improvement and innovation of the food and beverage industry and packaging industry, provide quality products and excellent service to meet client needs, make a profit, serve society, and benefit the public.

Vision：Develop sustainably and built to last for becoming a world - class excellent company.

Stakeholder

Commitments Our

Engagement

Sustainable Development Policy

6 Core Capitals

8 Material Issues

9 Sustainable Development Goals

THC

Purpose

Acquiring good business reputation Caring for our employees Developing global markets Nurturing our Talents Respecting our clients

Business Philosophy

Honest

Innovation

Quality

Service

Positive

Responsible

Keep Social Justice, Comply with Laws and Regulations, Improve Corporate Governance, Build up Best Companies to Work for, Mental and Physical Health Caring For employees, Enable Employees Career Plans, Protecting the Rights and Interests of Stakeholders, Social Participation, Sustainable Environmental Protection

Sustainable Development Committee

Short/ Middle/ Long-term Target

Society Finance

Environ-	Production
ment

Human

Resources Intelligence

• Finance：Create economic value through the effective management of financial resources
• Production：Ensure stable quality and high- efficiency equipment to meet client needs
• Intelligence：Strengthen our technology through investment into innovative R&D products
• Human Resources：Combine the strengths of team so employees may grow with the Company
• Environment：Reduce consumption of natural resources through source management
• Society：Actively communicate with stakeholders and social participation

Food Safety

Legal Compliance

Economic Performance

Client Service

Climate Change

Air Pollution Control

Water Resources and Wastewater Management

Waste Treatment

7 Stakeholders

Capital Clients

Providers

Government Employees Suppliers

Local

Communities Media

Attention and Care Sustainability Green Corporate Ethical Services and Products THC About

Long-term Target：Apply the innovative business model of the group to actively expand to the global food, beverage and cross-industry markets, and build an international enterprise with client satisfaction, environmental friendliness and sustainable development.

Middle-term Target：Cooperate with international companies' strategic model of strategic alliances and professional OEM, actively grasp significant market trends and growth opportunities.

Short-term Target：Innovative R&D technology, increase product value, continuously improve, and lay operational foundation.

Appendix

Taiwan Hon Chuan Group ESG Report

005