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Significant Issues

Major Issue Identification

Tang Eng Company analyzed the Company's operating activities, business relationships and sustainable context through the core aspect identification process, identified those Material Topics for 2024, and effectively responded to the concerns of various stakeholders in the management of the Material Topics.

In order to make the information disclosed in the Sustainability Report meet the needs of stakeholders, 4 major steps were implemented, namely Understanding the organizational context, Identifying actual and potential impacts of sustainability issues, Assessing the significance of these impacts, and issuing the Sustainability Issue Exposure Report, to determine the core sustainability aspects.

Understanding the organizational context

Tang Eng Company's reference to sustainable topics includes GRI theme criteria, industry criteria, SASB criteria, SDGs and the major topics in the Company's last annual report, etc., and 34 sustainable topics are compiled.

Identifying actual and potential impacts of sustainability issues

External experts rated the Company's actual or potential negative impacts and positive impacts on the economy, environment, and society (people and human rights) on sustainability issues, and then rated the actual negative impacts, potential negative impacts, and actual positive impacts of each aspect. Potential positive impacts on the economy, environment, society (people and human rights) are ranked after adding up the scores, and those with a total score greater than 30 points are considered the Material Topics of the Company. However, those listed by SASB are prioritized as Material Topics after scoring.

Assessing the significance of these impacts

Scoring results were approved by external experts and the heads of the Company's first-level units and directly affiliated second-level units after meeting and discussion at the commencement meeting of sustainable report compilation. Based on past operating experience, the degree and possibility of the significant impact of the issues were discussed, and 14 were determined by analysis as Tang Eng's core sustainability issues.

Sustainability Issue Exposure Report

According to the analysis results of core sustainability issues, external experts conducted a comprehensive evaluation with various departments of the Company according to the nature of the issues, and finally summarized the 12 core sustainability issues into 9 core aspect management contents, and communicated and responded to stakeholders through the Sustainability Report.

In 2024, Tang Eng Company selected nine topics that are highly concerned by stakeholders and have a high impact on enterprises, namely, economic performance, customer service management, emission (greenhouse gas and air pollution emission control), energy, waste materials (including materials), water resources management (water and sewage), occupational safety and health, happy workplace (labor-employment relationship, training and education), and sustainable supply chain (supplier environmental assessment).

2024 Tang Eng Material Topics

E: Environment

3 Emissions
(greenhouse gas and air pollution emission control)
4 Energy
5 Waste
(including materials)
6 Water resources management
(water and sewage)

S: Social

7 Occupational safety and health
8 Happy workplaces
(Labor-Employment Relations, Training and Education)
9 Sustainable supply chain
(Supplier environmental assessment, supplier social assessment)

G: Corporate Governance

1 Economic performance
2 Customer service management

Material Topic Impact Boundaries

In 2024, Tang Eng Company identified 9 Material Topics after analysis and discussion, and took the value chain as the impact boundary analysis element. Tang Eng will continue to strengthen management in the future and disclose relevant information in the Sustainability Report.

Material Topic Tang Eng Core Aspect Value Chain Impact Boundaries
Economic performance Tang Eng (caused)
Customer service management Tang Eng (caused), customer (directly related)
Emissions
(greenhouse gas and air pollution emission control)		 Tang Eng (caused), suppliers (promoted), and the public (directly related)
Energy Tang Eng (caused), the public (directly related)
Waste
(including materials)		 Tang Eng (caused), the public (directly related)
Water resources management
(water and drainage)		 Tang Eng (caused)
Occupational safety and health Tang Eng (caused), supplier (caused)
Happy workplace
(labor-employment relationship, training and education)		 Tang Eng (caused)
Sustainable supply chain
(Supplier environmental assessment, supplier social assessment) 		Tang Eng (caused), supplier (directly related), material supplier (directly related)

Management List of Material Topics

Material Topics Describe the Organization's policies or commitments related to Material Topics Describe the influences and impacts Mainly affected by
Economic Performance
  • Grasp the economic situation, strengthen and monitor production, sales, inventory, and logistics operations to improve core business performance.
  • Team-oriented leadership based on the principle of fairness, openness and transparency; revitalize idle assets and increase non-industry fixed income.
  • Strengthen financial monitoring and warning mechanisms to control financial risks.
  • Implement corporate governance and enhance the value of sustainable business operations.
 Economic aspect - Actual/Positive Impacts:
Complying with tax laws helps promote economic growth and regional balanced development. By adhering to tax regulations and maintaining an open and appropriate relationship with tax authorities, providing relevant proof such as corporate income tax books and documents for tax audits, effectively managing tax risks, and strengthening education and training, the risk of penalties or complaints can be avoided. 		Shareholders
Employees
Banks
Customers
Customer Service Management Policy:
Complying with tax laws helps promote economic growth and regional balanced development. By adhering to tax regulations and maintaining an open and appropriate relationship with tax authorities, providing relevant proof such as corporate income tax books and documents for tax audits, effectively managing tax risks, and strengthening education and training, the risk of penalties or complaints can be avoided.

Strategy:
  • Introduce the SWOT analysis method to establish a number of response strategies. In addition to continuously improving the quality of existing products, the Company is also committed to developing differentiated and customized products, providing customers with their special requirements and establishing cooperation channels for new steel types and new products, and cooperating with research and development of new steel grades and related business development in pursuit of the blue ocean market, to improve the Company's competitiveness.
  • In addition to timely and proper handling of customer problems, we actively work to understand the use and quality requirements of special product needs, and ensure that customer requests are met. To achieve the above goals, the Company conducts two-way communication with customers in a timely manner.
  • Set up a cross-unit quality leadership group to conduct regular project reviews in meetings to meet the needs of customers for continuous improvement of quality.
  • For customized, differentiated or customer-requested products, special staff are assigned for follow-up and review of each case in the group. Any complaints raised by customers are also discussed in group meetings and improvement countermeasures are proposed to provide customers with stable quality.
 Economic aspect - Actual/Positive Impacts:
The pros and cons of quality can effectively help grasp market trends and competitiveness, and continuous quality improvement can enhance customer satisfaction, consolidate customer loyalty, and create greater profits and sustainable operations for the Company. 		Shareholders
Customers
Emissions (greenhouse gas and air pollution emission control)
  • Compliance: Comply with environmental regulations and implement pollution prevention.
  • Environmental Care: Cherish environmental resources and participate in the circular economy.
  • Continuous Improvement: Continuously improve processes and enhance equipment energy efficiency.
  • Sustainable Development: Respond to climate change and move toward sustainable management.
 Economic aspect - Actual/Positive Impact: The steel industry is a high-energy-consuming industry. For countries that rely on imported energy, reducing energy use will help the overall economy and reduce greenhouse gas emissions, achieving sustainable operations.

Economic aspect - Potential/Negative Impacts:
  • Various process changes may make the processes and maintenance more cumbersome and complicated, resulting in increases in short-term financial expenditure of the Company.
  • Restrictions on the total amount of allowed greenhouse gases and tightening of air pollution control by the relevant authorities, may affect the production and sales of steel production, and the Company will then have to strengthen various control measures and invest in pollution control equipment, which will increase operating costs.
  • The Government is planning to introduce a carbon fee, which will increase operating costs.
Economic aspect - Actual / Positive and Negative Impacts:
Successive investments in related energy-saving equipment and improved manufacturing processes have greatly increased costs. Although energy consumption can be reduced, the cost amortization time is lengthened.

Environmental aspect - Actual/Positive Impacts:
Use low energy consumption and recyclable products to achieve environmental friendliness and sustainable operation. 		Shareholders
Employees
Local Community Residents
Energy Tang Eng Company is committed to pursuing control measures with high efficiency, high output value, low emissions, and low consumption to achieve energy-saving goals and effectively reduce environmental burdens as a green achievement. From 2015 to 2024, in cooperation with the Ministry of Economic Affairs' "Energy Users Setting Energy Saving Targets and Implementation Plan," the average annual electricity saving rate since the implementation of the plan should reach over 1%.
In addition to replacing old equipment in the plant area to save energy, the company has invested NT$135 million to build a 3,000kW solar power plant, which was constructed and grid-connected in July 2023, generating self-used electricity to reduce externally purchased power. 		Economic aspect - Actual/Positive Impact:
The steel industry is a high-energy-consuming industry. For countries that rely on imported energy, reducing energy use will help the overall economy and reduce greenhouse gas emissions, achieving sustainable operations.

Economic aspect - Potential/Negative Impacts:
Various process changes may make the processes and maintenance more cumbersome and complicated, resulting in increases in short-term financial expenditure of the Company.

Economic aspect - Actual / Positive and Negative Impacts
  • Successive investments in related energy-saving equipment and improved manufacturing processes have greatly increased costs. Although energy consumption can be reduced, the cost amortization time is lengthened.
Environmental aspect - Actual / Positive Impacts
  • Use low energy consumption and recyclable products to achieve environmental friendliness and sustainable operation.
 Shareholders
Employees
Local Community Residents
Waste (including materials)
  • Compliance:
    Comply with environmental regulations and implement pollution prevention.
  • Environmental Care:
    Cherish environmental resources and participate in the circular economy.
  • Continuous Improvement:
    Continuously improve processes and enhance equipment energy efficiency.
  • Sustainable Development:
    Respond to climate change and move toward sustainable management.
In order to enable the Company to effectively control the waste produced in the production process, manage and prevent waste according to their characteristics, so as to avoid environmental pollution and meet the requirements of laws and regulations.

Environmental policy-sustainable development:
participating in circular economy to ensure sustainable development. 		Environmental aspect - Actual/Positive Impacts:
Reuse of waste stainless steel by recycling resources can effectively reduce the impact on the environment.

Economic aspect - Actual/Negative Impacts:
There are too few waste recycling channels, and the cost of waste disposal is increasing year by year, resulting in an increase in the Company's costs. 		Customers
Local Community
Residents
Shareholders
Employees
Water Resource Management (water and run-off water)
  • Compliance
    Comply with environmental regulations and implement pollution prevention.
  • Environmental Care:
    Cherish environmental resources and participate in the circular economy.
  • Continuous Improvement:
    Continuously improve processes and enhance equipment energy efficiency.
  • Sustainable Development:
    Respond to climate change and move toward sustainable management.
Economic aspect - Actual/Positive Impact:
Reducing and saving water can lessen the Company's dependence on water during dry seasons and improve product competitiveness.

Economic aspect - Actual/Positive and Negative Impacts:
Successive investments in related water-saving or water recycling equipment and improvement of manufacturing process have greatly increased costs. Although raw water consumption can be reduced, the cost amortization time is lengthened.

Environmental aspect - Actual/Positive Impacts:
The control of heavy metals such as nickel and chromium in discharge water is friendly to river environmental protection issues 		Shareholders
Employees
Local Community Residents
Occupational Safety and Health The Company's ISO 45001 occupational safety and health policy:
  • Compliance with laws and regulations
    Comply with government safety and health regulations and fulfill corporate social responsibilities.
  • Avoid occupational accidents
    Implement safety and health regulations to ensure the safety and health of workers.
  • Continuous improvement
    Commit to improving facilities and the environment, and continuously improve safety and health performance.
  • Communication and participation
    Strengthen communication, participation and training, and improve the safety and health awareness of operators.
The Company complies with the Occupational Safety and Health Act, the Labor Standards Act and the international norms of the ISO 45001 Occupational Safety and Health Management System. 		Economic and Human Rights Aspects - Potential/Negative impact:
In the event of a major occupational accident, in addition to the physical and mental trauma of the victims, the company may be required to suspend work, which will affect the company's operating costs and damage its reputation.

Economic and Human Rights Aspects - Actual/Positive Impacts:
The employees are safe and the Company image is good. 		Occupational Safety and Health
Happy workplaces
(Labor-Employment Relations, Training and Education) 		The Company's labor-employment policy adheres to the concept of Employees are the most important assets of the Company. It attaches great importance to employee salaries and benefits, respects the harmonious relationship between the labor union and the Company, and regards employee care as one of Tang Eng's basic responsibilities, in order to stabilize the cornerstone of the Company’s sustainable management. Economic aspect - Potential/Negative Impacts:
If human resources management and labor-employment relationship management are not carried out properly, the Company may face operational risks and penalties from relevant laws and regulations in the future, and it may even affect and increase the turnover rate of the Company's employees.

Economic and Human rights aspects - Actual/Positive Impacts:
Doing a proper job in human resource management and labor-employment relationship management can effectively help retain talent, reduce the employee turnover rate, reduce recruitment costs and improve the goal of sustainable development of the organization. 		Employees
Shareholders
Sustainable supply chain *
(Supplier environmental assessment, supplier social assessment) 		In response to the increasingly serious global warming climate change, countries and enterprises all over the world have announced the goal of "energy saving and carbon reduction" one after another. To achieve this goal, all walks of life need to cooperate with each other, implement supplier management, introduce green energy procurement, and build a sustainable supply chain. Economic aspect - Actual/Negative Impacts:
Management is an expense, and managing suppliers will increase procurement costs, which in turn will increase operating costs.

Economic aspect - Potential/Positive Impacts:
In the fiercely competitive steel industry, enterprises must consider industrial upgrading and increase the added value of products to enhance their competitiveness. 		Upstream, Midstream and Downstream Stainless Steel Industries Chain
Shareholders