2014 Asia Cement Corporate Social Responsibility Report Editing guideline 03 5.Happy Workplace 66 Words of Chairman 04 5.1 Human resources 67 5.2 Employees’ welfare 71 5.3 Training and education 75 1.About Asia Cement 12 5.4 Occupational safety and health 77 1.1 Corporate overview 13 6.Green Environmental 1.2 Mission, vision, and sustainability Sustainability 66 strategies 17 1.3 Products and services 19 6.1 Greenhouse gases emission 85 1.4 Affiliates of Asia Cement 21 6.2 Air pollution prevention 87 1.5 Proactive in Public Business 29 6.3 Water resource management 89 6.4 Waste reduction 91 6.5 Energy saving and carbon reduction 2.Corporate Governance 32 performances 93 2.1 Governance organization 33 6.6 Create friendly green environment 99 2.2 Ethic and honesty 40 6.7 Compliance 103 2.3 Financial statement 41 2.4 Risks and opportunities 43 7.Social Care 106 7.1 Human science education 107 3.CSR Management 46 7.2 Community activities 109 3.1 Fulfill sustainability strategies 47 7.3 Donation to vulnerable groups 113 7.4 Ecological environment 3.2 Material aspect identification and conservation 114 sustainability topic investigation 47 7.5 Art activities sponsor 116 3.3 Stakeholders engagement and 7.6 Community communication material aspect boundary 51 channel 117 7.7 Anti-competition behavior 117 4.Product Liability, Customer 7.8 Indigenous rights 118 Service and Supply Chain 7.9 Mining in the specific landscape Management 56 of Taroko National Park and 3.1 Fulfill sustainability strategies 57 promises 119 3.2 Material aspect identification and 8.Appendix 121 sustainability topic investigation 59 3.3 Stakeholders engagement and 8.1 GRI G4 Content Index 121 material aspect boundary 61 8.2 CSI Index 122 8.3 External Assurance Statement 123 Editing guideline Dear Readers, The “2014 Asia Cement Corporate Social Responsibility Report” is elaborately prepared for the stakeholders to learn more about how Asia Cement is devoted to establish a complete sustainable corporate development. The Corporate Social Responsibility Report used the framework of Global Reporting Initiative (GRI) G4- Sustainable reporting guideline and followed the report principles, standard disclosure, and implementation manual. Moreover, based on the engagement of the Asia Cement business and fulfi lling the reporting principles, this report also responded to the topics concerned by all fi elds. It also presented the effort we have been putting in the economy, social, and environment aspects. Special events will be introduced in the form of special edition Report scope The report mainly provides the sustainable The content follows the “Core” option of the GRI-G4. management and performances in major operation We also refer to GRI- disclosure guideline index for sites of Asia Cement from January 1 to December mining and metal industry as Asia Cement has mining 31, 2014. The additional information of the domestic behavior. The report passed the external assurance physical operating companies disclosed in 2014 statement of SGS Taiwan Ltd. in order to provide the includes:Ya Tung Ready-Mixed Concrete, Yuan Long reliable public information to the readers and complied Stainless Steel, Ya Li Precast Prestressed, Nanhwa with AA1000 AS 2008 standard. Cement, Chiahui Power, Fu-Ming Transport, and Ya Li This is the second year of publishing the report and Transport. The fi nancial statement is published after strengthen the material disclosure of the subsidiaries being audited by the certifi ed public accountant. Parts in the consolidated financial statement. Pursuant to of the figures are quoted from the Annual Report, the regulations of Financial Supervisory Commission, government sectors, and the public information the report is being amended as Corporate Social disclosed on the relevant websites and is presented in Responsibility Report, which will be published once the conventional manner. Exceptions will be explained a year. The next estimated publishing time is June in the content of the report. 2016. Cover story To break the stereotype impression that the public Cement shortens the distance between people, has on the cement industry, Asia Cement devotes schools, communities, and groups with the dynamic to environment greenery and protection. This series beauty presented in the ecological park. of story starts from meeting a conservative Taiwan The page design is closely tied with green and specifi c subspecies butterfl y- Small birdwing (Troides fresh style with reading line auxiliary to provide a aeacus formosanus). The Small birdwing is like a more comfortable reading experience to the readers spectacular key to open the long hidden treasure to immerse themselves into the story beginning with chest of greenery of Asia Cement. Since then, Asia the small birdwing. The Corporate Social Responsibility Report published Publish date: December 31, 2014 Publish date: June 30, 2015 Words of Chairman It’s my honor to introduce the second publication of Asia Cement’s Corporate Social Responsibility Report for all the stakeholders to fully learn about the efforts and contributions that Asia Cement has made in the aspect of corporate sustainability and as the communication channel to periodically respond to the topics concern you. 2014 was a year of turbulent international situation with dramatic changes in energy price, and along with the continuance adjustment of China’s industry structure, the corporate is facing extreme difficult challenges. Fortunately, with the persistence and devotion of our employees, Asia Cement has growing consolidated sales revenue, reaching NT$77.7 billion, EPS NT$2.98. It is not easy for Asia Cement to maintain stable dividend policy for years. To Asia Cement, economic performance is just a part of the corporate responsibility. Especially when Asia Cement sponsors community constructions, makes outside world reviews all the aspects and deficiency donations to vulnerable groups and medical, charity, or of a corporate in the harshest standard, we put the culture and education foundations, and encourages the expectation of all the stakeholders, the environment, academic researches to give back to the society and the communities, the customers, the employees, and increase the medical standard. the supply chain, into our operation strategy aspect with In respond to the era of industry 4.0, the production a cautious attitude. mode in manufacture industry and the operation mode “Industrial development and environmental protection of the corporate will have a dramatic turn. Asia Cement run parallel” is the ideal we insist on for years. We will make actively reform and keep pursuing high also pursue to produce the material necessary for quality, high efficiency, high environmental protection, local construction with the highest standard. We built low cost, and innovation by incubating future talents, a biggest butterfly net house and ecological park in integrating information and resources. Asia Cement will Taiwan next to the front gate of Hualien Plant welcoming be the role model in the cement industry. more than 10,000 visitors each year. In 2014, we won The development history of Asia Cement, from the award of Environmental Education Outstanding cement business to multi-angle investment, from Award given by Hualien County Government, breaking development in China to global operation, has rich up the image most people have on the cement industry. accomplishment. In 2014, Asia Cement had total In Asia Cement, there is no dusty smog or bald production 31.02 million MT of clinker and 40.9 million mines; instead, we have a bright working environment MT of cement in Taiwan and China. Our goal is to reach surrounded by greens and shades for the employees, 50 million MT by 2016, becoming one of the top 10 fulfi lling the goal of “park-like plant”. cement producer in China. To us, “the idea of a green corporate coexist with Joel A. Barker once said, “Vision without action the ecological environment” is not just a slogan; it is merely a dream. Action without vision just passes is an execution goal. Asia Cement introduced many the time. Vision with Action can change the world.” advanced equipment and techniques, including 99% Asia Cement will become your first choice partner for high efficiency dust collection equipment, waste heat building sustainable green home with active action! recycle power generator which provides 1/3 of the Donglas Tong Hsu electric for the plant, more than 80% of water recycle, Chairman and internationally renowned and award-winning mine Asia Cement Corporation greenery recovery. These are the concrete action we take to realize green protection. In this year, we will self- inspect the aerosols emission of PM2.5. In conformity with the spirit of “whatever you take from the society, use them for the society,” each year 2014 Asia Cement Spotlight Corporate governance P39 Information disclosure evaluation A++ Top 5% of the fi rst corporate governance evaluation Remuneration of the directors and supervisors P38 Systemized Remuneration of the directors and supervisors and sustainable performance Economic governance spotlight Greenhouse gases P86 Market Presence P66 EPA Early Projects reduction TWSE High Salary 100 Index Economic 2.56 million tons performance P41 IDB voluntary reduction 278,000 tons Dividend distribution rate 100% Dividend yields 5.6% Biodiversity P99 Water recycle rate P89 Mine greenery recovery Hualien Plant 86% area 56 acres Hsinchu Plant 83% Environment spotlight Harbor pollution Transportation P96 Waste recycle and prevention P102 reuse P91 Innovative green harbor “Golden Vessel Awards” by energy-saving shore power Waste recycle and reuse Taiwan International Ports project 129,000 tons project Corporation. Environmental Energy saving and protection cost P104 carbon reduction P93 Waste resource P92 Environmental protection Carbon reduction amount Waste resource 187,000 tons cost NT$ 114 millionproject equals to 29,397 tons of CO2 Product label service P60 Diverse workforce P69 Customer satisfaction point Indigenous employees 7% 98.05 Win-win for corporate Employees’ welfare P71 and employees P14 Employees’ dividend system: Excellence Recognition for 4% profi ts as employees Collective Agreement with Social spotlight bonus. Employees Award Social responsibility Local community P85 Occupation health and expenses P106 safety P81 Hualien County Social responsibility Environmental Education Asia Cement year-round expenses NT$ 39,860,000 Outstanding Award zero industry safety event Ecological environmental education P107 Ecological environmental education guide tour 10,285 visitors Art activities sponsor P116 Hsinchu County Yiming Culture Festival The world’s only canyon marathon 2014 Asia Cement’s Goals and Promises Achievement Supply chain management 1.Stipulate KPI active management every year for newly developed and suspended suppliers. * In 2014, there were 2,284 engineering suppliers, in which Products and 40.85% were “excellent” and 55.74% were “good.” 51 services label suppliers were suspended from our supplier list. Maintain customers’ satisfaction 95+ points 2.Visit suppliers; stipulate KPI active management every year. *Achieved *In 2014, the visit goal achieve rate was 181%. CSR Material Short term goals and promises Aspects (complete within 1 year) Greenhouse gases emission Hualien Plant completes #1 kiln upper fan duct of the preheater improvement. Environmental protection investment The benefi ts is heat energy could be fully used, reduce the fuel consumption, 1.Hsinchu Plant completed the side walls and reduce greenhouse gases emission. heightening and roof remodeling of the existing indoor stack yard to inhibit outdoor dusting. * To be executed in the third quarter of 2015. * To be executed in the second quarter of 2015. 2.Hsinchu Plant completed the dust collection improvement project at the turning point of the Greenhouse gases emission conveyor system to inhibit outdoor dusting. Hualien Plant completes #1 kiln upper fan duct * Executed 70-80%; will be continuing in 2015. of the preheater improvement. The benefi ts is Outdoor dusting has phased improvement. heat energy could be fully used, reduce the fuel consumption, and reduce greenhouse gases emission. *To be executed in the third quarter of 2015. Environmental protection investment 1.Hsinchu Plant completed clinker EP polar line and plate major repair project and electronically control renew project to increase the rotary kiln operation rate and clinker production and reduce the fuel consumption and greenhouse gases emission. * In third quarter 2014, the polar line and plate major repair project was completed; the electronically control renew project continues in 2015. Now the operation during the kiln opening period is smooth and the energy consumption is reduced. 2.Hualien Plant completed the electrostatic dust collection improvement project to increase the dust collection effi ciency and reduce the particulate pollutants emission. * To be completed in the fourth quarter of 2015. 3.Hualien Plant conducted the self-inspection of aerosol emissions of the exhaust duct and researched on the infl uence of the cement plant on the PM2.5 air quality to increase the self-management of the plant. * In 2015, complete aerosols emission of the exhaust duct self-inspection and research on the infl uence of the cement plant on the PM2.5 air quality. The results can be provided as the reference for the legislation. Long term goals Midterm goals and promises and promises (complete within 3 years) (complete within 5 years) Product environment impact Complete Kaohsiung Harbor shore power project within 5 years. The power of loading and unloading of Cement Ship (operated by Uming Marine Corp.) in each harbor will be supplied on shore. * Hualien Harbor and Kaohsiung Harbor shore power project to be completed in 2015. Greenhouse gases emission 1.Hualien Plant completed #3 kiln cooler improvement. The Energy benefi ts is heat energy could be fully used, reduce the fuel consumption and reduce greenhouse gases emission. Achieve 5% of energy saving whin 5 years in Hsinchu Plant and * To be executed in the third quarter of 2016. Hualien Plant to fulfi ll the resource sustainability and environmental 2.Hsinchu Plant completed #5 kiln preheater cyclone central protection. tube, tipping valve and spreader plate replacement. The heat * In 2015, initiate the energy energy could be fully used and reduce the fuel consumption saving plan. and greenhouse gases emission. * To be executed from the second quarter of 2015. 2015 Asia Cement’s New Goals and Promises Waste water and waste Fu-Ming Transport: Improve Air pollution prevention recycle and waste management mechanic. Hualien Plant: In 2015, complete the bottom trough improvement along the belt conveyor and collect Energy the carryback to prevent belt conveyor dusting. Hualien Plant: Purchase green electric and support the Fu-Ming Transport: Coordinate to the energy saving green energy development. activities of the Automotive Research and Testing Ya Tung Ready-Mixed Concrete: Install “mixer power Center and strengthen the idle management system energy saving device” at Taoyuan Plant in 2015. 15% of electric is expected to be saved for that system. Nanhwa Cement: Install inverters for high pressure motor in the production system. 4~5% of the electric is Products and services label expected to be saved. Headquarters: Maintain customers’ Chiahui Power: Mechanism reliability over 99%. satisfactory 95+ points. Fu-Ming Transport: Design CIS label to Employee care strengthen the corporate identifi cation. Fu-Ming Transport: Add family day activities every year. CSR Material Short term goals and promises Aspects (complete within 1 year) Product environment impact Community communication and services Fu-Ming Transport: Purchase Fu-Ming Transport: Each site pays concerns to 20 EURO V vehicles in 2015 the neighboring residents and holds community to reduce waste oil and air activities. pollution. Yuan Long Stainless Steel: Adopt 400 meters of the industrial zone greenbelt and input more than 200 men into the greenery, cutting, and cleaning. Transportation Ya Tung Ready-Mixed Concrete: Introduce 15 EURO V concrete Local community- mixer vehicles in 2015. Ya Tung Ready-Mixed Concrete 1.Each plant adopts the cleaning or sprinkling of the sidewalks twice a week for about 50 meter to maintain a clean environment. CDP and climate change adjustment 2.Hold academic-industry corporation activities each year. Invite teachers and students of Headquarters: Report the CDP civil engineer department to visit the plant and information and act according to the deliver the brand concept of Ya Tung Ready- climate change adjustment. Mixed Concrete to them.
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