The Company established the ESG Corporate Sustainable Development Committee on March 1, 2022, under which are the Environmental Sustainability Promotion Team, Social Responsibility
Promotion Team, and Sustainability Governance Promotion Team. The Committee is chaired by the chairman & president, and the representative members of the three teams are selected from the
business unit executives. The ESG Corporate Sustainable Development Committee is in charge of setting and developing the sustainable strategies, goals, and relevant management approaches,
leading the sustainability team to propose and implement specific plans, continue to deepen and embody the vision of corporate sustainable development, and report to the board of directors
the implementation status of ESG related issues and outcomes of the sustainability information at least once a year. The board of directors will make suggestions and supervise the implementation
status of the management approaches, strategies and goal setting, and implementation measures of the ESG Corporate Sustainable Development Committee.
STAKEHOLDER COMMUNICATION
PANJIT attaches great importance to the interaction with its stakeholders and continues the communication with them through different channels and media to understand their needs and expectations, and further respond to them and disclose information. When making assessments of material topics, individuals or groups that may be affected by the Company’s economic activities in terms of every topic were also evaluated, and the stakeholders of the year were identified based on the degree of impact on them. The stakeholders identified for 2022 include Employees, Government, Customers,
Shareholders/Other Investors, Local Community, and Contractors/Suppliers/ Outsourcers. PANJIT continues the communication with its stakeholders, makes timely responses to the stakeholders’ expectations, and establishes good communication channels.
STAKEHOLDER COMMUNICATION CHANNELS AND RESULTS
(Note) The identities of stakeholders, issues of concern, channels of communication, and methods of response identified by the Company are reported to the Board of Directors at least once a year.
[Stakeholder Communication Channels] Link: https://www.panjit.com.tw/tw/Contact?page=other]
RISK MANAGEMENT
To fulfill the company’s obligations for sustainable governance and to grasp the internal and external potential risks of operations, the board of directors approved the Risk Management Measures in 2021 to define various risks according to the company’s overall operating policy and establish a mechanism for early identification, accurate measurement, effective supervision and strict control of risk management. PANJIT prevents possible losses within the acceptable range and continuously adjusts and improves the best risk management practices in accordance with changes
in the internal and external environment to protect the interests of the employees, shareholders, partners, and customers, increase the company value, and achieve the principles of optimization
of the resource allocation of the company. The scope of risk evaluation includes but is not limited to market risk, operational risk, financial risk, hazard risk, or other risks that may cause significant
losses to the company.
In addition, the company also refers to sustainability standards and specifications at home and abroad (GRI, SASB, TCFD, etc.) and internal and external shareholders communication issues to
summarize sustainability issues covering the environmental, social and corporate governance aspects. Through discussions in the meetings among ESG Corporate Sustainability Committee
members and sustainability consultants, the significance of actual and potential impact of the sustainability issues on the stakeholders and company operations are evaluated. Corresponding
risk management policies and approaches are established in accordance with the identification results. Specific preventative measures are also taken to reduce the impact of relevant risks to
strengthen risk management and lay a solid foundation for the sustainable development and management of the company.
Based on the assessed risks, the Company has formulated the following risk management policies or strategies, which were reported to the Board of Directors on November 9, 2023. The Board of Directors supervises the implementation of risk management in accordance with its authority and responsibility, and makes recommendations on the contents of the report when necessary.
Ethics and Integrity
The core value of PANJIT is integrity management, and we have been committed to improving transparency and building a credible and responsible corporate image. We have formulated the Corporate Governance Best Practice Principles, Ethical Corporate Management Best Practice Principles, Procedures for Ethical Management and Guidelines for Conduct, and Codes of Ethical Conduct, established an internal control and supervision mechanism to actively prevent dishonest conduct. In addition, the Integrity Management Promotion Team was also established under the board of directors to report to the board of directors its integrity management policies, plans for dishonest conduct prevention, and the implementation of supervision at least once a year.
The company has established an assessment mechanism for the risk of dishonest conduct. When preparing the annual audit plans, the level of impact of the risk of dishonest conduct is also included in the assessment items to make regular analysis and evaluation of the business activities with higher risks of dishonest conduct within the scope of business, and the annual audit operations are planned based on the risk assessment results. It is aimed to prevent conducts with potentially higher risks of dishonesty.
To implement integrity management, PANJIT not only evaluates the integrity records of its suppliers, but also requires these suppliers to sign a “Supplier Anti-corruption and Anti-bribery Commitment”. In addition, the clause on integrity and ethics has also been added to the contract terms, specifying the requirements for the adherence to integrity and compliance with ethics in business activities. Moreover, the company also requires personnel related to business activities with higher risks of dishonesty (such as sales representative and purchasing agent) to sign the Ethics (Anti-bribery) Commitment Letter, and publicity is also conducted through announcements, education and training as well as the bulletin boards to ensure the personnel abide by ethics and policies. The company also provides education and training on corporate social responsibility and integrity management to new employees in the orientation to demonstrate the company’s determination in integrity management.
Furthermore, the company has also established the Measures for the Management of Stakeholders’
Suggestions and Complaints. A service contact for stakeholders’ suggestions and complaints has also been set up on the company’s official website as the grievance channel for stakeholders when their rights and interests are infringed. The handling status of the stakeholders’ suggestions and complaints is also reported to the Audit Committee on a quarterly basis. Meanwhile, other internal reporting channels such as the contact, physical mailbox, and email boxes have been set up in accordance with the Ethical Management Procedures to maintain the rights and interests of the stakeholders and the company. All the reported incidents are handled, investigated and recorded by a dedicated unit based on the principle of confidentiality. When the incident is found true after investigation, measures and legal actions including the termination of the business relationship or employment contracts would be implemented based on the severity of the case and in accordance with the Work Rules. The anti-bribery communication channels and the outcomes for 2022 are detailed as follows. In 2022, the company did not have any relevant corruption incidents, and was not involved in any legal incidents or litigations involving anti-competitive behavior, antitrust, and monopoly behavior.
