ESG

●Sustainable Development

I.The Company's “Sustainable Development Code of Practice” has been formulated in full compliance with the "Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies"

II.The risk assessment boundary is based on the Company and its subsidiaries. The company spares no effort in promoting the development of sustainable environment, society, and corporate governance. At the same time, it strengthens the disclosure of sustainable development information and supports employees to participate in environmental and social contribution activities.

III. In promoting sustainable development initiatives, TWSE/TPEx listed companies shall, in its corporate management guidelines and business operations, give due consideration to the rights and interests of stakeholders and, while pursuing sustainable operations and profits, also give due consideration to the environment, society and corporate governance.

IV.The Company's to implement sustainable development initiatives, TWSE/TPEx listed companies are advised to follow the principles below:

  • Development of a sustainable environment
  • Protection of social welfare
  • Enhancement of information disclosure on sustainable development

V.Sustainable Development Code of Practice as follows:

Sustainable Development Code of Practice

Vl.Sustainable Development Architecture and Organization member as follows:

Sustainable Development Architecture

VII.The implementation of the Company's promotion of sustainable development is as follows:

(1) The President of the Company is the convener to promote sustainable development, leading the top executives of the Engineering Division, Finance Division, Administration Division, Development Division, and Sales Division to jointly promote the sustainable development of the Company and the environment. For details of the members of the organization promoting sustainable development and the actual implementation.

2.The Company's Administration Division regularly reviews the effectiveness of the operations and reports to the Board of Directors on the operations for sustainable development on a quarterly basis.

VIII.The Company's risk management policies are established :

1.The Company's risk management policies or strategies on material issues related to environment,society, and corporate governance are evaluated with respect to the principle of materiality for sustainable development, and the related management policies are established as follows:

Issues

Risk assessment item

Management policies

Environment

Environmental impact and management

1. The Company has institutionalized management and requires the suppliers to comply with environmental protection regulations for their products to reduce pollution emissions and the environmental impact of the housing construction..

2. The Company entrusts the disposal of construction waste and household waste to legal vendors in order to alleviate the impact of waste on the environment..

Socioty

Occupational safety

1. Safety and health regulations are established and labor safety personnel with labor safety licenses are appointed to perform labor safety inspections..

2. Uniforms, safety helmets and safety shoes are provided for site staff to protect their safety.

3. Safety and health education and training are carried out on a daily basis at the site, and personnel are reminded to wear helmets and safety shoes before entering the site, and safety measures such as safety belts are hung for overhead operations, and cables shall be well insulated, and cranes and equipment shall not be overloaded and overweight..

4. Labor insurance and extra-employment liability insurance are provided for employees. Besides, we also conduct regular annual health checkups..

Product warranty and service

1. The Company's warranty for customers' houses: 15 years for the main structure, 3 years for the fixed building materials and equipment.

In order to ensure the quality of customer service, the Company has developed the phone software "Application of Hua Yu Lien Family" to provide customers with instant services online. Additionally, it also organizes resident activities irregularly to strengthen the relationship with customers.

Corporate governance and

integrity in business

Legal compliance

By the promotion and implementation of the internal control system, the Company ensures that the employees comply with relevant laws and regulations.

Strengthening of directors' functions

1. The Company has planned continuing education for its directors and has arranged for them to attend ESG, corporate governance, regulatory, and financial accounting courses every year.

2. Directors' liability insurance is provided to protect directors against lawsuits or claims..

Communication with stakeholders

The Company has established a good communication channel with its stakeholders. Please refer to the "Contact methods of stakeholders " in this Annual Report.

2.Risk management operations :

The Company's risk management operations were reported to the meetings of the Board of Directors and Audit Committee on 2023, and the reports are as follows:

(1). Operational risks: The Company reviews the operational risks arising from the internal and external environment from time to time, and responds to them early to reduce risks and losses.

(2).Interest Rate Risk:Central Bank of the R.O.C. continuous interest rate hikes since 2022,that increase the cost of capital , hence,issued guaranteed ordinary corporate bonds in 2023 September to reduce capital pressure and risks .

(3).Human capital risk : Resently younger generations are less interested in the construction industry has led to labor shortages,the company are evaluating others manpower deployment.

IX.The company to supplier social responsibility as follows :

Supplier Social Responsibility

X.Supplier management policies and implementation

1.Supplier evaluation: Suppliers of raw materials related to the manufacturing process must pass the ISO quality management system certification.

(1).Goldsun Building Materials Co., Ltd. (concrete material supplier):ISO 9001(quality management system)ISO 14064-1(greenhouse gas inventory standard)certified.

(2).Golden Friends (GFC, Ltd.) Corp. (elevator supplier):ISO 9001(quality management system)ISO 14001(environmental management system)certified.

2.Supplier audits: The site director audits the suppliers irregularly on quality audits and occupational safety and health, in order to guarantee the quality of construction projects and protect labor human rights.

3.Environmentally Sustainable development: Suppliers are actively required to be committed to environmentally sustainable development and contribute to the environment in which they operate.

(1).Goldsun Building Materials Co., Ltd. (concrete material supplier): actively engaged in environmentally sustainable development, such as promoting green research and development (including green concrete,ALClightweight bricks, carbon mineralization technology, recycled materials), energy management, greenhouse gas reduction, low-carbon transportation, air pollution prevention,and water resource management..

(2).Golden Friends (GFC, Ltd.) Corp. (elevator supplier): actively engaged in environmentally sustainable development, such as implementing green operation, green products and services, green procurement, green power production, electricity saving, carbon emission reduction in manufacturing process, energy-saving elevator optimization, purchasing green bonds, encouraging green consumption by employees.

4.Labor human rights and occupational safety and health: The Company actively asks our suppliers to create a friendly workplace environment and value labor human rights and occupational safety and health.

(1)Goldsun Building Materials Co., Ltd. (concrete material supplier): Implement diversified equality and non-discrimination (including gender equality policy), fair remuneration (no pay gap based on gender), maternal health protection program, regular labor-management meetings and two-way communication and negotiation with employees, and employee education and training. At the same time, it has implemented measures to prevent occupational hazards such as the promotion of occupational safety and health, the establishment of the Occupational Safety and Health Committee, the provision of subsidies on employee health checkups, and the implementation of "safe and defensive driving"..

(2). Golden Friends (GFC, Ltd.) Corp. (elevator supplier): Establish the Occupational Safety and Health Committee, formulate safety rules for high-risk operations, and set up an accident notification mechanism..

●Specific results of implementing sustainable development (ESG)

Based on the concept of giving back to the community, the Company has spared no effort in promoting social welfare and charitable causes.

Specific results of implementing sustainable development (ESG) in 2023

Donation details in 2018

Donation details in 2022

Annual greenhouse gas emissions, water
consumption and total weight of waste

Donation details in 2021

Donation details in 2020

Donation details in 2019

●Implementation of Integrity in Business

Based on the concept of giving back to the community, the Company has spared no effort in promoting social welfare and charitable causes.
(1) To promote integrity in business, the Company has established the "Procedures for Ethical Management and Guidelines for Conduct to implement the external aspects of ethical corporate management.
(2)The Company reported to the Board of Directors on the implementation of integrity in business in the third or fourth quarter , as follow :

Implementation of Integrity in Business