2O22

SUSTAINABILITY REPORT

ABOUT THIS REPORT

01

FROM THE CHAIRMAN

02

AWARDS AND ACCOLADES

04

SUSTAINABLE PERFORMANCE HIGHLIGHT

06

SUSTAINABLE BLUEPRINT

07

•

Stakeholder Engagement

09

•

Identifying and Responding to

11

Material Topics

CORPORATE GOVERNANCE

16

1.1

About Tainan Enterprises

17

1.2

Corporate Governance

22

1.3

Ethical Management

24

1.4

Risk Warning and Assessment

25


1.5 TCFD Climate Change Risks

Value Chain Reform

28

05

2.1

Innovation and Circular economy

29

2.2

Sustainability Partnerships

32

2.3

Product Safety

36

Environmental Sustainability

39

3.1 Operating Environment Management

40

3.2

Water Resource Management

49

3.3

Management of Chemicals

51

Employee Care

52

4.1

Employee Profile

53

4.2

Employee Compensation and Benefits

56

4.3

Promotion of Employee Rights

60

4.4

Occupational Health and Safety

64

4.5

Career Management and Learning

67

Social Inclusion-Little Nans Project

70

5.1 Resonating Structure to

Establish Circular Design

71


5.2 “Tainan Re-Action”

Little Nans Sustainable Collaborative

Learning Action Plan

72

5.3 Continued Follow-up Plan: Good Nan

Collaborative Learning Group

78

Appendix I

GRI Standards

Disclosure Item Comparison Table

79

Appendix 2

Sustainability Accounting Standards Board

Comparison Table

84


TAINAN ENTERPRISES SUSTAINBILITY REPORT 2022

Corporate Governance

Value Chain Reform

Environmental Sustainability

Employee Care

Social Inclusion

1

ABOUT THIS REPORT

This report is the fourth sustainability report issued by Tainan Enterprises Co., Ltd. (hereinafter referred to as Tainan Enterprises), with the main purpose of disclosing the company’s efforts, performance, and future strategic objectives in the areas of Environmental, Social, and Governance to the general public and stakeholders. Tainan Enterprises hopes that the publication of this report will give stakeholders an understanding of our commitment to the continued pursuit of corporate sustainability and social responsibility.

The Tainan Enterprises Sustainability Report has been prepared in accordance with the 2021 GRI Standards: Core option published by the Global Reporting Initiative (GRI).

The data and content disclosed here are mainly for the period between January 1 and December 31, 2022. Some of the performance data is from information prior to 2021 or more recent information in 2023.


  • Report Boundaries and Scope

The information outlined in the report encompass Tainan Enterprises operating locations in Taiwan, China, Indonesia, Cambodia, and Vietnam. In 2022, Tainan Enterprises did not experience significant changes in scale, structure, ownership, and supply chain. If any information in this report has been recompiled, it will be indicated in the respective paragraph.


  • Basis of Information and Calculations

The information and statistics provided in this report come from internal statistics and investigations. Some of the financial data in the section on Business Performance cites financial statements signed by the CPA. All of the financial data in this report are expressed in New Taiwanese Dollars (NTD). All of the data were collected, measured and calculated in accordance with regulatory requirements. International standards were followed if there were no specific applicable regulations. If there were no applicable international standards then industry standards or practices were used as a reference.

This is the third report to be published by Tainan Enterprises Co., Ltd. The report is published annually and made available for viewing and download on the Tainan Enterprises website.

Current release: September 2023

Previous release: September 2022

Next release: September 2024

Tainan Enterprises Co., Ltd.

Address

15th Floor, No. 15-1, Section 1,

Hangzhou South Road, Taipei City

Contact

Sustainability & Quality Assurance Department,

Tainan Enterprises

Tainan Enterprises

Tel

(02)2391-6421

Email

SQ@tai-nan.com

Co., Ltd. Website

TAINAN ENTERPRISES SUSTAINBILITY REPORT 2022

Corporate Governance

Value Chain Reform

Environmental Sustainability

Employee Care

Social Inclusion

2

Chairman

Dear stakeholders:

2022 was a year of uncertainty and rapid changes. With the European Union’s decision to implement the Carbon Border Adjustment Mechanism in 2026 and Taiwan’s commitment to achieving net-zero emissions by 2050, green governance has become not only the prevailing theme of the present but also a key factor in assessing a company’s sustainability and ability to operate in the long term.

Considering global sustainability trends, ESG issues are of concern to governments, investors, customers, and the general public. These issues encompass “climate action,” “supply chain risks,” “operational resilience,” “social engagement,” and “workplace equality,” which serve as indicators for evaluating a company’s sustainability. As a participant in the fashion industry supply chain, in response to the new norms of geopolitical and zero-carbon economies, Tainan Enterprises is actively embracing the “SDGs Sustainable Development Goals” and “Net Zero Emissions” initiatives. We are accelerating our journey towards sustainability by not only systematically formulating ESG development strategies and aligning them with our core business but also taking a leading position in the sustainability race. We are driving initiatives in four major dimensions: green manufacturing, responsible supply chain, diverse and inclusive workplace, and social engagement. Through these efforts, we aim to strengthen our operational resilience and create greater value for all stakeholders.

In our decarbonization efforts, we are implementing energy transformation, installing solar panels on our roofs, and adopting

TAINAN ENTERPRISES SUSTAINBILITY REPORT 2022

Corporate Governance

Value Chain Reform

Environmental Sustainability

Employee Care

Social Inclusion

3

biofuels to reduce carbon dioxide emissions. Additionally, process improvements, the use of variable-frequency equipment, and an intelligent electricity metering system (EMS) are increasing energy efficiency. Next year, we will officially introduce greenhouse gas inventories and combine digital solutions to achieve circular transition and scientifically set carbon reduction goals.

In the realm of circular economy and responsible production, all our manufacturing sites have the capability to produce products with RCS (Recycled Claim Standard) certification. Furthermore, our Gin-Sovann factory has obtained GRS certification for the use of recycled and eco-friendly fabrics. This not only reduces negative environmental impacts but also lessens reliance on conventional materials, aligning with our goal of greener processes.

Regarding human rights protection, we are committed to promoting gender equality. We have initiated the P.A.C.E. Women’s Education Program in Cambodia, which has been extended to production areas in Indonesia, and our Vietnam factory has joined the similar HER project. Moreover, we continuously strengthen our connections with communities and non-profit organizations to improve the livelihoods of local people.

As the company undergoes its sustainability transformation, the Tainan Enterprise Arts & Culture Foundation is

repositioning itself as a pioneer of sustainable design, a leader in sustainable education, and a practitioner of the 17 SDGs. In preparation for the 400th anniversary of Tainan in 2024, the foundation is focusing on sustainable education and launching the “Tainan Re-Action” collaborative action to design the future of sustainable education, amplifying its social impact.

The Earth is the soil that nurtures our company, and giving back is our responsibility. As an international corporate citizen, everything we do behind the scenes is out of mutual respect and gratitude. Tainan Enterprises strives to establish a cycle between society and the environment through sincerity, innovation and perseverance. We embrace sustainability as part of our corporate character in order to become a world-leading enterprise in sustainability

Chairman of the Board

Yang Ching Hon

TAINAN ENTERPRISES SUSTAINBILITY REPORT 2022

Corporate Governance

Value Chain Reform

Environmental Sustainability

Employee Care

Social Inclusion

4

Awards and Accolades

Past Awards

2012

• Ann Inc. Top Vendor Award

• Macy’s Five Star Award


  • Global Views Monthly 10th Corporate Social Responsibility Awards

2014


  • CommonWealth Magazine CSR Awards – No.5 in the Medium- sized Enterprises category

  • Macy’s Five Star Award

2015


  • CommonWealth Magazine CSR Awards – No.6 in the Medium- sized Enterprises category

  • MGF Long Term Partnership Award

  • Macy’s Five Star Award for Global Citizenship

  • CommonWealth Magazine CSR Awards – Medium – sized Enterprises category

  • 4    th National Environmental Education Awards – Merit award in the Group category
  • HER Project Excellence in Project Execution Award

2016

TAINAN ENTERPRISES SUSTAINBILITY REPORT 2022

Corporate Governance

Value Chain Reform

Environmental Sustainability

Employee Care

Social Inclusion

5

2017


  • MGF Anti – Human Trafficking Award

  • 1    st Taiwan Circular Economy Awards – Gold award in the Cross-Industry category

2019


  • Global Views Corporate Social Responsibility Awards – Excellence in Environmental Sustainability Award

  • CommonWealth Magazine CSR Awards –     Medium-sized Enterprises award
  • 6th Taiwan Mittelstand Award
  • Nominated for the 17th Global Views Monthly CSR Award in the Social Innovation category

2021

2020

2022

• COVID -19 Team Taiwan

• Net Zero Industry

Competitiveness Excellence

Award


TAINAN ENTERPRISES SUSTAINBILITY REPORT 2022

Corporate Governance

Value Chain Reform

Environmental Sustainability

Employee Care

Social Inclusion

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Sustainable Performance Highlight

t

c

e

A

p

• P a r t i c i p a t i o n i n

8

w e l l – k n o w n

s

domestic and overseas associations


  • 0     violations of business ethics
  • Operating revenue grew by 30% compared to the previous year
  • Joined 9 international sustainability initiatives

•

Passed 100% of human rights audits with no use of

child labor, forced labor, or discrimination

•

2,000 employees have benefited from the PACE

education program

•

Hosted 22 development courses; provided arts

and culture training 401 times

•

Tainan Enterprise Arts & Culture Foundation’s “Tainan

Re-Action” project created a collaborative support

s

p

l

A

a

t

n

e

m

n

o

r

i

v

n

E

  • All factories have obtained Recycled Claim Standard (RCS) certification

  • Cambodia factory obtained Global Organic Textile Standard (GOTS) certification

  • Cambodia Factory installed     63 solar streetlights to provide nighttime illumination for the factory area

t


  • Jakarta Factory activated biomass fuel in boilers, with other factory areas gradually transitioning to clean energy

  • Scope 1 and Scope 2 GHG
    emissions were 13.67% lower than the previous year
  • Overall water consumption reduced by 8.2% than the previous year
  • Patented Washing method – using bamboo roots instead of stones

system for sustainable education

• Replacing water-washing with

bamboo roots reduces environmental

impact, heavy metal residues, and

water pollution caused by stone

mining

• No penalties for violation of

local environmental laws and

regulations in 2022


TAINAN ENTERPRISES SUSTAINBILITY REPORT 2022

Sustainable Blueprint

Corporate Social Responsibility and Governance

The sustainable development of society and the environment is the responsibility of Tainan Enterprises as a corporate citizen in good standing. We have developed management mechanisms and goals in response to social and environmental changes. We also strive to fulfill our corporate social responsibility by dealing with every employee in good faith and looking after every piece of land.

CSR Task Force

Corporate Governance

Value Chain Reform

Environmental Sustainability

Employee Care

Social Inclusion

7

Board of Directors

General Manager

Sustainable Development and QA Department

Tainan Enterprises embraces our role as a corporate citizen by actively putting CSR into practice in line with international trends. We also drew up the CSR Best Practice Principles to fulfill our corporate social responsibility and look after the rights of our stakeholders. As corporate citizens, we are fully committed to supporting the national economy, improving the quality of life for employees, communities and society, as well as the pursuit of sustainable corporate development and management. Tainan Enterprises attaches great importance to governance, environmental and social factors as well so have incorporated ESG into our management approach and business activities. Domestic and overseas trends in CSR development, correlation with core company operations, as well as the stakeholder impact of the Group’s business activities as a whole were taken into account to devise our CSR policy, system, related management approach, and actual implementation plans. CSR is practiced across the board to reach a balance between economic and social sustainability.

Corporate

Governance Team

Business

Performance

Ethical

Management

Risk

Management

Shareholder

Protection

Internal Audits

and Controls

Employee Care

Team

Compensation

and Benefits

Labor/Management

Relations

Workplace

Environment

Talent

Cultivation

Gender

Equality

Product Safety

Team

Quality

Control

Customer

Service

Customer

Privacy

Management of

Chemicals

Innovative

Technologies

Climate Change

Team

Environmental

Sustainability Policy

Energy

Monitoring

Sustainable

Supply Chain

Waste Management

Carbon Reduction and

Water Conservation

Social Inclusion

Team

Social

Engagement

Circular

Economy

Philanthropy

Charity

Support

TAINAN ENTERPRISES SUSTAINBILITY REPORT 2022

Corporate Governance

Value Chain Reform

Environmental Sustainability

Employee Care

Social Inclusion

8

Tainan Enterprises Support for UN SDGs

Factories made regular visit to local children’s homes to make donations in kind while also participating in various community engagement activities.

Financial donations are made by the Cambodian factory to the local children’s home every year. Employee also visit the children and play with them.

1. The P.A.C.E. education program provides female employees with work and life education. Nearly 2,000 female employees have benefited from the program to date and it will be expanded to the Vietnamese factory in 2022.

Employee Care 4.5.1 P.A.C.E. Education Program

2. The “Little Nans Sustainable Collaborative Learning Action Plan” project invited 24 representative professionals to act as sustainable learning mentors for 50 third and fourth-grade elementary school children, allowing them to explore themselves, participate in society, and adopt a sustainable lifestyle by starting with an understanding of the land in a fun and engaging way.

5.2 “Tainan Re-Action”Little Nans Sustainable Collaborative Learning Action Plan

The GBV-POSH sexual harassment prevention program trained selected factory employees to become instructors. The instructors then raised awareness on sexual harassment among other employees at the factory.

Employee Care 4.3.2 Sexual Harassment Prevention Program

The “Tainan ReAction” project has been implemented with three dimensions – Urban Sustainability, Plastic-Free Business District, and Relationship Renewal. As a result, the accumulated public service hours have reached 2,074 hours (520 hours in urban community service and 1,554 hours in the second department). Additionally, there were 5 community building courses with 400 participants (103 males and 297 females).

Social Prosperity 5.2 “Tainan Re-Action” Little Nans Sustainable Collaborative Learning Action Plan

The Cambodian washing factory (water-intensive production site) recycled 100% of its process and domestic wastewater. “Zero wastewater discharge” was achieved in 2021.

Environmental Sustainability 3.1.2 Wastewater and Waste Management

Tainan Enterprises is confronting the effects of climate change by introducing the Task Force on Climate-related Financial Disclosures (TCFD) framework. Risk assessments are conducted for the impacts of climate change so that a carbon emission reduction plan can be devised to mitigate climate change.

Corporate Governance 1.4 Climate Change Risks and Opportunities

The Foundation partnered with Dot Design and Super Textile Corp. to combine pineapple fiber with recycled plastics and transform recycled textiles into circular textiles. Tainan Enterprises’ expertise in pattern-making, production, and R&D were also leveraged to create stylish eco-friendly bags. A circular economy mindset was applied to create practical applications for circular materials. By making sure that every material can continue to be circulated and reused through the industry, excessive consumption of resources is avoided during the product development process.

Value Chain Reform 2.1.2 Circular Economy

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Tainan Enterprises Co. Ltd. published this content on 27 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 October 2023 11:04:03 UTC.