hannsg · address：no. 35, nanke 2nd road, xinshi dist., tainan city 741, tainan science...

1

HannStar Display Corporation,

Occupational Safety & Health Office

Phone NO.： (06)-5052880 Ext.3550

E-mail address：[email protected]

Address： No. 35, Nanke 2nd Road, Xinshi Dist., Tainan

City 741, Tainan Science Industrial Park, Taiwan,

R.O.C.

HannstarHannspree

HannsG

Editor'sWords○

HannsStar was established to offer the healthiest vision,

and is devoted to development, manufacture and sales of

the low radiation, low power consumption, and light and thin

TFT-LCD products. Our vision is to bring the world TFT-LCD

product in a more healthy, safe and environment-friendly way.

Starting from Compliance, we disclose in this report about

management policy on CSR, the responses and reaction

toward critical issues, our performance on environment and

caring for the community in 2012. We explain the details to

concerns of Stakeholders.

HannsStar started publishing CSR (Corporate Social

Responsibility) report from 2010. This is the fourth one. We

have not set any deadline for external assurance for the

report. No significant changes from previous reporting periods

in the scope, boundary, or measurement methods applied

in the report. The boundary and scope of the report covers

economic, environmental and social performances of HannStar

in Taiwan, and part of GHG and water information is disclosed

in HannStar group’s brand-holding companies in China.

.If there is any suggestion or opinion, the contact point is as

below.

2012 Corporate SocialResponsibility Report

2

Boundary of the report

The boundary is mainly the factory areas and offices in Taiwan, including the head office

in Taipei city, Wugu Office in New Taipei City and the factory area in Tainan. Due to difference

on management method and incapability of receiving evidence of information from factories in

China, we only disclose part of environmental information about Hannspree and HannsG, our

100% owned brands with factories in Nanjing in China.

Reporting period

January 1~ December 31 in 2012. And, the relevant fact, policy, goal, and plan before

and after the period will also be disclosed in this report too.

Data measurement techniques and the bases of the calculations

Global Reporting Initiative, (GRI) version 3.1. The financial statement figures in this report

are calculated by NTD (new Taiwan dollars), and relevant performances of safety, health

and environmental protection are expressed by the international indicators. On conditions of

estimations or assumptions, we will notify in relevant chapters. Compared with the CSR report

published last year, there is no re-statement of information provided about earlier report.

Revisions to the earlier report will be notified in relevant chapter.

Reporting cycle

Date of Current issue: 2013 Dec

Date of most recently previous report: 2012 Dec

Date of next issue: Scheduled in 2014 November

Access to CSR report

1. Web：http://www.hannstar.com/

2. The book：HannsStar CSR Report

Contents○

04 To All Stakeholders

Business Review

08 Group result 12 Group result

16 Stakeholder and key topics

Producers' Green Activity

21 GHG reduction 23 Water management

24 Green supply chain and hazardous free products

27 Energy-saving 32 Waste and recycle

32 Compliance of environmental protection regulations

Labor and Human Rights

34 HannStar' s values 36 Benefits for employees

41 Education and training

Support to society

49 Philanthropy, Art and culture, Interaction with communities

54 G3.1 Context


4

International and domestic energy crisis are becoming more and more serious.

Economic and environmental issues like water resources, accelerating aging population in

Taiwan, and nuclear safety draw more and more attention. As the chairman of HannStar, I

thought a lot about how to take the corporate social responsibility while facing scarcity of

resources, and how to continue innovation and sustainable development while challenged

by tough business situation. This is the question for all employees of Hannstar.

Global climate change and energy depletion issues continue alarming and are

inescapable operational risks. We will be oriented by creativity on technical values and

high operation performance. For emissions of perfluorocarbons compounds like SF6 and

NF3, we have local scrubbers to minimize them and reduced approximate 210,000 tons of

CO2e in 2012. Our Tainan factory has been honored by Ministry of Economy for energy-

saving performances since 2010 and the yearly intensity GHG emission in 2012 is 4.1%

lower. In waste minimization, we improved the production yield rate (correspondently

reducing the amount of scrap), reduced chemicals and other materials in the production

lines, and continued the reuse systems of SRS, NF and photo resistance---all with a reuse

rate higher than 90% since 2009. Furthermore, in 2012 we started carbon sequestration---

not only participated in Tainan Science Industrial Park's tree-planting activities, we also

planted trees in our own site area.

Looking to the market, the demand for mobile touch device will continue rising. We will

be oriented by creativity on technical values and high operation performance. HannStar

collaborates with suppliers from the upstream materials like TFT-LCD panels, small-and-

medium-sized LCM modules, touch panel modules and our owned brand companies,

Hannspree and HannsG, to upgrade ourselves to a holistic TFT-LCD panel and branding

company. On applied technology, to create niche product and differentiation, we actively

To AllStakeholders○

5

To All StakeholdersHannStar Display‧Display HappinessHannStar Display‧Display Happiness

build technology platform for small-and-medium-sized products like smart phones,

car applications, tablets and other touch applications.

Our technologies like HS-IPS LCD1 high-end integrated touch panel, ultra-thin

glass, 3D technology , transflective outdoor strengthened display and One Glass

Touch (OGT) touch module provides customer smart, energy-saving and high

value-added products. We thereby establish and maintain long-term relationship

with leading manufacturers in consumer electronics and system assembly fields.

As for ethic operation, HannStar clearly forbids any bribes and announced the

related punishment. On stakeholder communication, we manage risk management

for supply chain and customers with IT systems/platforms to ensure compliance

to international requirement and to exchange information. We have the specific

departments to deal with legal matters and shareholder services for investors. For

labor relationship, employee benefits, pension fund, labor safety and health, labor-

management meetings, etc. are equal to or better than the statutory conditions.

Sustainability is about economical, environmental and social development. In

2012 Q4, Hannstar finally stopped the loss for several years and became profitable.

In 2013, We will continue to stay profitable and try to have globalized thinking and

the localized work to positively feedback to stakeholders.

Chairman　Teresa Ma

Note

1. HS-IPS LCD: HANNSTAR-In Plane Switching Liquid Crystal Display

EnvironmentEnvironmentSocietySociety

EconomyEconomy

2012 Results

Hannstar faced the biggest problem-loss for several years. We bettered the operational direction, changed the inventory turnover and led ourselves to the right market, and finally achieved the single-season after-tax profit in 2012 Q4.

2013 Vision

Hannstar continued 2012 operating direction to stay a monthly 95% capacity utilization rate on average.

Market Trend

TFT-LCD industry is in booming demand and existing players are increasing the capacity. Facing the more and more competitive market, Hannstar will hold a conservative attitude on capacity.

Strategy

With the rising demand on mobile touching devices, Hannstar will develop a series of products for customer' s demand and future technologies. Our management targets are stable operation, consistent creativity, environmental protection, risk controll and healthy financial structure.

Business Review○

EconomyEconomy


08

Brief introduction of HannsStars

1 HannStar Display Corporation is a listed company in Taiwan (6116), and

the main stockholders include national and international organizations and

individuals.

HannsStar produces and sells TFT-LCD panels at both OEM business and under our own

brand names of Hannspree and Hanns.G to manufacture the notebook, monitor and consumer

electronics for customers in Taiwan, Japan, South Korea, U.S.A., China and Europe. HannsStar' s

LCD panel and touch panels are developed for smart phone and tablet products. We input

marketing budgets on Hannspree and Hanns.G for establishing brand image, marketing plans

and after-sell service center. And we also work hard on setting up channels in China for the

monitor and TV market.

HannsStar' s is committed in integration and innovation of TFT-LCD manufacturing

processes and product, and we positively respond to market demand. Our 5.3 generation plant

can be regarded as the most efficient representative for the production of small-and-medium-

sized panels in line with strong demand for smart phones, car load panels, tablet computers.

With touch module production base in Nanjing, China, Hannstar integrates LCD modules and

touch module technology to be at a competitive advantage.

Hannstar

Business Review

09

HannStar Display‧Display Happiness

Business Review

http://global.hannsg.net/index.htm


10

2 Strategies

A. Create niche product and differentiation. We actively build technology platform for

small-and-medium-sized products like smart phones, car applications, tablets and other

touch applications. Our technologies like HS-IPS LCD high-end integrated touch panel,

ultra-thin glass, 3D technology , transflective outdoor strengthened display and One

Glass Touch (OGT) touch module provides customer smart, energy-saving and high

value-added products.

B. Co-work with our affiliate company HannsTouch on OGT touch panel to provide lighter

products.

C. Establish and maintain long-term relationship with leading manufacturers in consumer

electronics and system assembly fields.

D. Strengthen vertically manufacturing capabilities and global channels for our own brands

Hannspree and HannsG on LCD TVs, monitors and 3C products.

UK Store

11


Business Review

3 Financial data

Unit：Thousands in NTD

Items 2011 2012

Financial revenue and expenditure

Sales 41,682,923 34,918,695

Operating costs 39,946,505 30,149,083

Net Interest & dividend income

-83,955 54,990

Tax 0 0

Net profit (loss) after tax -7,441,207 -1,640,926

Earning capacity EPS(NTD) -2.56 -0.56

Since the global economic slowdown in 2012, the momentum for growth of TFT-LCD

industry weakened, so the average selling price and annual sales revenue declined. However,

with management adjustment, our losses also simultaneously reduced.

As for the remuneration of the management, the board of directors revised the president's

salary on December 29, 2010. Since January 1, 2011, the president's salary will be 50% of

the general manager's when there are no surpluses in the year, while 100% otherwise. The

remuneration adjustment for the president in the future will be the same as remuneration policy

as that of other staff.

4 Technology and overview of researching and developing

Unit：Thousands in NTD

　 2011 2012

Net sales 41,682,923 34,918,695

Research and develop expenditure 1,718,448 1,425,194

Research and development expenditure / Net sales (%)

4.12% 4.08%

We focus on R & D of low radiation, light power, and good reliability based for different

customer needs, interfaces and modular panel. 2012 Research and development expenses

ratio is 4.08%.

As for the TFT-LCD panel patents, we are certified with 112 patents worldwide in 2012,

accumulated 1,084 so far, 670 on application. In addition, Hannstar is top 100 patent appliers

according to the Ministry of Economic Affairs Intellectual Property Office (TIPO) 2010's

Statistics. We have also applied for patents in China these years, with 20% increase in 2012

cases, especially in wide viewing angle technology and in touch panel. HannStar emphasizes

patent portfolio and is making a good use of them in both offensive and defensive ways.


12

5 Memberships in associations and national/international advocacy

organizations

As a general member, HannStar participated in the following organizations and projects in

2012.

A. TTLA, Taiwan TFT LCD Association

B. Cloud computing association in Taiwan

C. Industrial Safety and Environmental Protection Committee in Southern Taiwan Science Park

D. Labor Safety and Health Association of the Southern Taiwan Science Park

E. TDUA, Taiwan Display Union Association

F. PIDA, Photonics Industry & Technology Development Association

Governance

Although HannStar has not stipulated the special system and department for corporate

social responsibility (CSR), the CSR issues are shared to all departments for execution.

All kinds of education and training about CSR are fixedly or irregularly held, and most of the

execution are examined and connected to the performance of every employee and department.

All the results must be reviewed by the board regularly, especially financial performances like

monthly capacity using rate, main product series and employee benefits. Our governance

structure abides by Taiwanese government's “Corporate Governance Best-Practice Principles

for TWSE/GTSM Listed Companies”.

（I）Organization chart

Panel Sales &Marketing

Center

Panel & TouchSolutionSales &

MarketingCenter

LogisticCenter

QualityManagement

Center

ProductDevelopment &Manufacturing

Center

InnovationProductCenter

IT/CEProductCenter

Board of directors

Chairman Office

Head Office

President Office

Shareholders' meeting

Supervisors

Auditing Office

Legal Center

Human Resource &AdministrativeManagement Center

Compensation Committee

Finance and Accounting Center

Safety, Health,Environment andRisk Management Office

Intellectual Property Center

13


Business Review

（II） Board of directors

There are five directors in 2012 and among them two are independent directors.

One out of the five is female, and all the directors are over-40-year-old Taiwaneses

and are well trained or with professional operational experience. The board had 7

meetings in 2012.

Here are the progresses.

(1) “Board of directors meeting norms” is revised in Dec 2012 to strengthen the

function of the board.

(2) In order to encourage the directors to receive training, we offer government

approved institutions’ training information to directors and tracking their training

situation.

(3) To improve the transparency of information: Announce the important resolution

of the board right after board meeting finished.

(4) The interests-avoiding of directors is applicable to the Corporate Law, articles

206 and 178.

（III）Supervisors

HannStar uses supervisor system to execute functions of Audit Committee.

Supervisor' s composition and duty:

(1) Ways to communicate with employees and shareholders: supervisors get to

contact directly with the staff, shareholder and stakeholders by email or phone

when necessary.

(2) Ways to communicate with internal audit executives and certified accountants:

i. Audit executives provided and reported the audit report to supervisors

after finishing audits; the supervisors had no objection.

ii. When audit executives reported the audit report to board of directors,

the supervisors had no objection.

iii. Supervisors can contact the certified accountants anytime to

communicate business issues.


14

（IX）Compensation Committee

The composition, duty and operation situation of the compensation committee of our

company are as below.

(1) The compensation committee was appointed by the board of directors on

September 28, 2012. There are 3 members: 1 is an independent director, 1

director and 1 independent professional. The organizational regulation of the

compensation committee is on our website, http://www.hannstar.com/Common.

aspx?mid=195&tmid=4&modid=1

(2) The members of compensation committee should fulfill due diligence for the

following items and should be responsible to propose for discussion of the board.

i. Stipulate and examine regularly the policy, system, standard and

structure of the linkage between performance and remuneration of

directors, supervisors and managers.

ii. Stipulate and examine regularly remuneration of directors, supervisors

and managers.

iii. Other items authorized by the board of directors.

(3) The compensation committee's operation

Committee's president convened a meeting once in 2012.

（X） The linkage between the reward to the top managers and organization's

performance

Hannstar had loss after tax in 2012, so distribution of surplus needs no

discussion.

In addition, all directors and Supervisors could only have transportation

allowance for their yearly work. According to Hannstar stipulation, all directors and

Supervisors could have no more than 2% of surplus even in years of surplus. The

above-mentioned principles could be adjusted considering changes of economy,

industry, company's future development and profit-making situation.

（XI） Anti-corruption and information protection policy

Among working principles, "Behavior and working principles of the staff”

stipulates no engagement in fraud and bribes allowed, and the needs of interest-

15


Business Review

avoiding behavior. In addition, we have another working principle "Business

information protection policy" explaining details of protecting the secret of company

affairs. Internal audit office under President's administration supervises the

whole organization. All the above principles are put on on-line training and all our

employees need to take these courses.

（XII）Lawsuits and sanctions

Hannstar has never involved in public policy lobbying, and we are compliant

with the relevant anti-competitive laws and regulations. However, we still honestly

disclose lawsuits, litigations or sanctions as below.

Since December 2006, Hannstar has been investigated by the United States,

Europe, Korea and Canada for investigations into anti-competitive practices and US

antitrust civil litigations. Among them, Hannstar reached an agreement with the U.S.

Justice Department, agreeing to pay fines of USD 30 million in six terms in five years.

Also in 2010 European Commission determined Hannstar to pay fines € 8.1 million,

and Hannstar paid in 2011.

In 2011 Hannstar reached settlement in principal with some of the plaintiffs of

the U.S. civil litigation cases; the settlement amount was paid USD14.9 million in

2011 and USD27 million in 2012. The settlement with the other part of the plaintiffs in

2012 was paid USD9.5 million in 2012, 1.5 million in January 2013, and 3.5 million in

February 2013 respectively.

In December 2011, the Korea Fair Trade Commission fined 87,100 million won

for violation of competition law of Korea. Hannstar paid in February 2012.

In 2011 the National Development and Reform Commission of the People's

Republic of China fined RMB240,000 for violation of the Price Law of the PRC.

Hannstar paid in 2012.

Till the end of 2012, Hannstar has accrued the preceding settlement

compensation fully, but can estimate neither the possible impacts for those litigations

still in progress nor what might happened in areas other than the above areas.

Under the influence of anti-competitive litigations, Hannstar started company-

wide advocacy on policy of “corporate compliance with antitrust law" & “Fair Trade

Compliance operating rules" in 2012.


16

Assessment for Stakeholders and Materiality Topics

To concern shareholder' s topics, to keep communicative channels transparent any time,

and reflect the topic in time—these are what we think of necessity for sustainability.

Starting from daily operation, our CSR working group from the relative departments

defines out the following 5 types of stakeholders—customer, supplier, employee, investor

and community. CSR working group searched on internet for CSR reports issued by relative

industries to collect all CSR topics and designed a questionnaire to have a sensitivity-and-

influence weight calculation to prioritize subjects matter to Hannstar.

In addition to the regular communication channels, every year we send the questionnaire

to understand stakeholders' concerns. With the feedback, our CSR group screened out 20

topics covering company's operating environment, community relation, customer's request,

international trend, etc. for year 2012. The questionnaire collected data of concerning level of

our shareholders on important topics, and our colleagues analyzed the impact level. Topics with

high sensitivity and high influence would be in higher priority listed on Hannstar’s annual work

program and disclosed in CSR Report.

Stakeholders Topics of Concerns Communicative channels

Customers

Reliability / Quality

Green products

Use of restrictive

substances

Technology development to

innovate

Hanns customer's E platform

Special line for customer service

Service center

17


Business Review

Stakeholders Topics of Concerns Communicative channels

Employees

Health & Safety

Training

Compensation / Benefits /

Contract terms

Labor-Management Meeting

The newcomers seminar

Employee' s benefit committee

[email protected]

employee' s claim line

Labor' s safe and Hygiene

Committee

Supervision Committee of the Retire

Fund

Investors

Profitability

Market share

Compliance

Business and Financial

risks

Shareholder meeting

Market observation Post System

Investment & Corporate Services

Department

Stock affairs office

Communities

Environmental impact

ESH Awards

Economic contributions

(eg. Philanthropy)

Donations

Participate in the official events

(energy-saving activities/contest)

Supply chainHazardous substance

Green product

GPM green products system

Seasonal performance review

Yearly audit of supply chain


18

CSR material issues

Influence on Stakeholder Assessments and Decisions

3.1

2.9

2.7

2.5

2.3

2.1

1.9

1.7

1.51.7 3.12.92.72.52.32.11.9

Reliability on Quality

Employee Training

ProfitabilityUse ofrestrictivesubstances

Workingconditions

Greenproducts

Innovation

CSR implementation Business and Financial risk

EHSAwards

Market sharecareer development

Contract terms

Compliance

PhilantrophyHealthy & Safety

Employee BenefitsSupply chain

Sig

nific

ance

of E

cono

mic

, Env

ironm

enta

l, an

d S

ocia

l Im

pact

s

Carbon Reduction

Hannstar' s main emission sources are consumption of electricity and PFCs, therefore we worked hard on the two directions and had a 4.2% reduction on emission per unit.

Water Resource Management

The adjustment of production line makes the volumes of total water usage and unit usage increase 6% and 3% respectively. Hannstar will keep managing water.

Green Supply Chain and Hazardous Substance Free Production

Hannstar set up the systems for REACH, RoHS, ISO14001, GPM/QC080000, halogen-free design, carbon footprint, water footprint and conflict metal management thanks to the suppliers' cooperation.

Energy-saving

Hannstar worked on 5 directions on energy: electricity-saving design for the whole system on use phase, electricity-saving design for individual parts, reduction on the energy consumption and transportation GHG emissions, reduction on electricity consumption on daily operations, and reduction on auxiliary material consumption in manufacturing process.

Waste Management and Recycle

We manage Waste by the order of decrement, classification, re-use, recycle, and landfill. The re-use rates have been more than 90% in the past four years.

Compliance on Environmental

Regulations

Up to publishing of this report, no environmental protest or violations of environmental regulations ever happened.

Producer' sGreen Activity○

EnvironmentEnvironment


20

Hannstar’s green policy: Respond to the global environmental protection trend,

conform to demands of customer’s green products, compliant to international regulations on

environmental protection, and devoted ourselves to cherishing the earth.

As a producer, we take the following points into account: In aspects as environmental

protection, health & safety of products, we announced quality policy to meet customer’s

demand. In green quality, we develop the hazardous substance free (HSF) product and try our

best to reduce the use of hazardous substance to cherish the earth and the user/consumers.

In production safety policy, we prevent pollution to reduce the relative risk, improve safety

conditions in the manufacture process continuously and economize energy use.

Regulations

Others

SociaResponsibility

Customer' s request

Respond to the global environmental protection

Conform to demands of customer' s green products

Devoted ourselves to cherishing the earth

Compliant to international regulations on environmental

protection

Hannstar' s Green Quality Policy

Criticalissues

HannStar' s Environmental

Principles

Producer' s Green Activity Hannstar

21


Producer' s Green Activity

GHG Reduction

Hannstar has performed yearly GHG inventory1 and verification following ISO14064-1

since 2005. The emission of GHG in Tainan factory in 2012 is 317,000 metric tons of CO2e-

-the direct energy emission occupies 39%, and the indirect energy emission 61%. PFCs2

emission contributes a big part to the direct energy emission, and electricity does the same to

the indirect energy emission, so our direction to reduce carbon is to focus on PFCs decrement

and electricity-saving.

█ Scope1(PFCs)

█ Scope1(Non PFCs)

█ Scope2

█ Scope1

█ Scope2

37%

5%

2%

61%

95%

HannspreeHannstar

Note

1. GHG (greenhouse gas) inventory is divided into three scopes. Scope 1 (direct GHG

emissions) and scope2 (indirect GHG emissions) need qualitative and quantitative inventory,

while scope3 (other indirect GHG emissions) needs only qualitative inventory .


22

Hannstar Emission & Intensity Trend

Total CO2e emission (million tons)

CO2 emission intensity (CO2e ton/M2)

0.002005 2006 2007 2008 2009 2010 2011 2012

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

0.45

0.50

0.00

0.02

0.04

0.06

0.08

0.10

0.12

0.14

0.16

0.18

0.20

0.179

0.0810.073

0.069

0.154

0.116 0.097

0.088

Tota

l CO

2e e

mis

sion

CO

2 em

issi

on in

tens

ity

Hannstar

Diagram

1. The above "Total CO2e emission" data are different from those disclosed in 2011 Hannstar CSR

report. The reason is that the 2005~2007 GHG data disclosed in 2011 Hannstar CSR report

included those of Kaohsiung factory, 0.15、 0.1、0.13mil tons CO2e respectively. We correct

the scope to only Tainan factory this year. Kaohsiung factory stops operation since Jun30, 2009.

2. The above "Unit CO2e emission" data are different from those in 2011 Hannstar CSR report.

The reason is that in 2012, a third party verified on glass size from 2005 to 2011 and we

made a corresponding correction."

Among our branding companies, Hannspree also conducted GHG inventory following

ISO14064-1 without external verification. Hannspree’s emission of GHG in 2012 is 20,700

metric tons of CO2e— the biggest part is the indirect energy emission (94.7%), and the direct

energy emission occupies 5.3%.

The focus of GHG reduction in Hannspree is PFCs decrement and electricity-saving. The

latter is explained in another chapter “Energy-saving”. As for PFCs decrement, Hannstar

signed the memorandum of voluntarily reduction with TTLA3 and Environmental Protection

Administration in 2004, promising all factories established after 2003 to be installed with local

Note

2. PFCs, Perfluorocarbons

3. TTLA, Taiwan TFT LCD Association

23



scrubbers to reduce more than 90% PFCs. About 1.44million tons of CO2e was reduced from

2005 to 2012.

In addition, Hannstar requests customers to have a lump-sum return to save the freight

charges and reduce CO2 emission. And Hannstar has chartered bus for staff (from Chiayi,

Pingdong, Kaohsiung to factory in Tainan) to reduce not only staff’s commuting expenses

and accident probability, but also CO2 emission.

Water Resource Management

Hannstar’s sole water source is tap water. Water consumption for production reached

3.12million M3 in 2012, a 170,000 increase yearly. The main reason is the reconstruction

for new production lines. The unit usage of water also increased to 0.68 in 2012(about 3%

higher). We will keep managing it.

Among our branding companies, Water consumption of Hannspree reached 0.35 million

M3 in 2012, 0.2 mil M3 increase yearly for increase production. While HannsG 0.22 million

M3, 0.51 million M3 decrease for decrease production.

Hannstar Total Water Use

0.020062005 2007 2008 2009 2010 2011 2012

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

0.0

0.2

0.4

0.6

0.8

1.0

1.4

1.2

Total water use (million m3)

Water use intensity (ton/M2)

1.191.03 0.98

0.90

0.78 0.67 0.67 0.68

Tota

l wat

er u

se

Wat

er u

se in

tens

ity

Hannstar

Diagram

The above "Unit water usage" data are different from those in 2011 Hannstar CSR report. The

reason is that in 2012, a third party verified on glass size from 2005 to 2011 and we made a

corresponding correction."


24

Water use of Hannspree & HannsG

2011 20120

10

20

30

40

50

60

70

80

Hannspree

HannspreeHannsG

HannsG

15.2

73.1

34.9

21.8

Mil

m3

Thanks to the cooperation of suppliers, Hannstar finished 3 cases of water footprint

inventory with 1 case of external verification; totally 3 cases of external verification since

2011. Also, Hannstar finished 12 cases of carbon footprint inventory with 3 cases of external

verification; totally 9 cases of external verification since 2011.

Green Supply Chain and Product Responsibility

Thanks to the suppliers' cooperation, our products are verified with REACH, RoHS,

ISO14001, GPM/QC080000, halogen-free design, WFP, CFP and international energy-saving

and safety marks like TCO, GS, and Energy Star.

Here is what we have done for supply chain of Hazardous Substance Free

Product.

1. Hannstar audits suppliers on QSA/QPA/GP systems.

2. New materials must come with ICP1 and Certificate of Forbidden Materials.

3. ICP1 report must be renewed by the supplier every year.

4. Hannstar maintenance center guarantees to compliant with demand and standard of HSF

Note

1. ICP, Inductively coupled plasma

25



On impacts of health safety of products, Hannstar performs evaluation on stages on 100% of

our product categories.

Yes No

Development of product concept V 　

R&D V 　

Certification V

Manufacturing and production V

Marketing and promotion V

Storage distribution and supply 　 V

Disposal, reuse, or recycling 　 V

In procurement, Hannstar also does careful screening on new suppliers based

on the following four directions.

（1）Supplier Screening：

Basically supplier must have ISO9001 system, and the new product must be

verified through Hannstar's internal supplier evaluation and audit procedures by SCT

meeting held by procurement department and SQE to make sure acceptable quality.

Suppliers are required by Hannstar's environmental protection requirements and

green product specification and then will be ranked.

（2） Local procurement：

Hannstar promotes local procurement and encourages suppliers to set up

factories in Taiwan to save freight, energy consumption and time starting from

inventory carbon footprint. In 2012, about 80 % of indirect materials are locally

purchased.

（3）Fair procurement：

Procurement proceeds on reasonable and fair conditions like quality, price,

delivery , supply stability, and environmental protection performances, etc..

（4） Communication：

In addition to daily communication, the WIP website (http://vip.hannstar.com) is

often used for two-way data communication. For example, information of orders and

trading conditions and the behavior of both sides can be discussed on WIP website.

In addition to daily communication, the VIP website (http://vip.hannstar.com) is often used

for two-way data communication. For example, information of orders and trading conditions and

the behavior of both sides can be discussed on WIP website.


26

Hannstar makes the following statement about Conflict Minerals1：

1. As a corporate citizen, Hannstar respects

international human rights. Hannstar does

not directly purchase raw metal, but we

strongly announce no support and no use

of Co, Sn, Pd, Ta, W, Au and other metal

minerals from Congo and its neighboring

countries witn armed conflict, illegal

exploitation and poor working conditions.

2. As a corporate citizen, Hannstar respects

international human rights. Hannstar does

not directly purchase raw metal, but we

strongly announce no support and no use

of Co, Sn, Pd, Ta, W, Au and other metal minerals from Congo and its neighboring countries

witn armed conflict, illegal exploitation and poor working conditions.

3. As for the use in electronic products, possible source region and other relative issues of

conflict minerals, Hannstar will continue to follow this issue and will require current and new

suppliers to conduct investigations and to provide information.

Conflict Mineral Region

Note

1. Conflict minerals – some metal and minerals have become the main sources of income for

armed rebel groups in Republic of Congo and its neighboring countries. They use the money

to buy arms, to continue its bloody conflict with the government, to ravage local civilians,

and to force recruitment of children as child soldiers and miners. Thus, buying minerals from

Congo has caused international controversy for a long time. In July 2010, US President

Obama signed the first Act No. 4173 (HR 4173)," Dodd-Frank Act.

27



Energy-saving & Material-saving

1 Electricity-saving design for the whole system on use phase

Hannstar' s products such as LCD TV, LCD monitors and computers are designed to

electricity-saving when standby and power off to meet requirements of ErP (Energy-related

Products) and Energy Star. On energy efficiency, we are compliant with European Energy

Labeling Directive 1062/2010 and the Chinese energy efficiency labeling management.

Hannstar works hard to be the best energy-saving brand to consumers when marketing in

energy sensitive countries,

2 Electricity-saving design for individual parts

Smart phone is the fastest growing product currently; every brand company asks for new,

light, thin and electricity-saving panels. To meet this Green demand, Hannstar has particular

design to achieve thinner glass, narrow frame, and HUVA1.

As for thinner glass technology, HannsStar has applied 0.4 mm manufacturing procedures

and corresponding reduced consumption of hydrofluoric acid.

As for narrow frame, Hannstar has successfully bonded the IC circuit on substrate so the

invisible area of the edge of the glass was decreased from 2.1mm to 1.5mm, and targeted to

have 25% more decrease. With this technology, we further decreased 10% of the IC materials.

Border > 2.5 mm

AAarea

DataGata signal Gata signal Control signal Control signalIC IC

Data

AAarea

Border < 1.5 mm

Traditional rack IGD rack

IG

IG

The invisible area is 20% decreased and the IC materials usage 10%.


28

As for HUVA, LCD monitor is lighted by

backlight module so the panel aperture ratio

is the key to influence the effects of backlight

modules. Hannstar has successfully applied

HUVA technologies to high resolution models

(like qHD); it makes the panel aperture

ratio 20% higher and lower the power

factor to have a 20% decrease on power

consumption. With high efficient LED, we are

developing more electricity-saving products.

As for HUVA, LCD monitor is lighted

by backlight module so the panel aperture ratio is the key to influence the effects of backlight

modules. Hannstar has successfully applied HUVA technologies to high resolution models (like

qHD); it makes the panel aperture ratio 20% higher and lower the power factor to have a 20%

decrease on power consumption. With high efficient LED, we are developing more electricity-

saving products.

With the increasing popularity of OGS, Hannstar further an economic model OLS (One

Layer Solution) capacitive touch panel. Simplifying OGS multi- mask processes, OLS still has

multi-touch function and provides more different products.

Traditional Advanced

The panel aperture ratio is 20% higher.

29



3 Reduction on the fuel consumption and transportation GHG emissions

Shipping department manages through the following adjustments for full load of cartons

and vehicle.

I. Shipments loaded from a single load changes to a stacking load

Before After

In principle, shipments must be in full carton and pallets to reduce the cost of

cartons and pallets and further reduces transporting fuel waste and GHG emissions.

II. Reduce the number of package cartons and pallet

In principle, shipments must be in full carton and pallets to reduce the cost of

cartons and pallets and further reduces transporting fuel waste and GHG emissions.

III. Recyclable packaging material to full cabinet

On recycling packaging materials, Hannstar coordinates with various outsourcing

factories to set up target of full cabinet return. The cabinet loading rate of 2012

increased to 95% from the previous year, an increase of 10%.

IV. Unrecyclable packaging material to full cabinet

Through combined shipment and automatic set-up in production line, 2012

shipment of unrecyclable packaging materials is 20% lower than that of base year.

Since 2012Q2, the quantity of unrecyclable packaging carton is 3,161 reduced, that is

NTD2.2mil saved.


30

4 Reduction on electricity consumption on daily operations

Daily operational activities with a specific energy conservation

Hannstar' s electricity of production is 362.62 million KWH, 0.40 million KWH increase

compared to last year. The main reason is adjustment of production lines. But the electricity use

per unit decreased 4.1%-- showing our efficiency.

Among our branding companies, electricity consumption of Hannspree reached 20.08

KWH in 2012, 3.33KHW increase yearly for increase production. While HannsG reached 13.79

KWH, 18.27 KWH decrease for decrease production.

1. Electricity-saving in office 2. Low carbon diet

31



290

300

310

320

330

340

350

360

370

380

390

20062005 2007 2008 2009 2010 2011 20120

50

100

150

200

250

Total electricity use (million KWH)

Electricity use intensity(KWH/m2)

199.7

137.1

103.9 99.5 95.9

83.782.6 79.2

Tota

l ele

ctric

ity u

se

Ele

ctric

ity u

se in

tens

ity

Diagram

The above "Electricity use intensity" data are different from those in 2011 Hannstar CSR report.

The reason is that in 2012, a third party verified on glass size from 2005 to 2011 and we made

a corresponding correction."

5 Reduction on auxiliary material consumption in manufacturing process

Target equipment or process Name of the project Yearly improvement (%)

PVD Metal Sputter Prolong using time of

Molybdenum metal target14.8

Array PEP EngineeringReduce green photoresist

(l/piece)39

Array PEP EngineeringReduce blue photoresist

(l/piece)49

UPS system Reduce UPS batteries 50

Stripper reclaim system Stripper -

TMAH recovery system NF1、NF2 24.7

* In addition, the annual target of recycle for photoresist stripping liquid is 85%; the recycle rate

in 2011 and 2012 both 86%.


32

Waste Management and Recycle

The priority of Hannstar’s waste management is reduction, classification, re-use, recycle,

and finally landfill. All returned products (such as : backlight modules and printed circuit boards)

are revalued for re-use purpose by specialized departments; for those unable to repair and re-

use are handled by a qualified waste cleaning company.

In 2012, waster per unit is 1.20 kilograms / m2 lower than that in 2011 (1.61). Re-use rate

of waste3 has been higher than 90% in the past 4 years. No major chemical spills or hazardous

wastes import / export in 2012.

Compliance on Environmental Regulations

Up to publishing of this report, no environmental protest or violations of environmental

regulations ever happened.

In addition, about discharging waste water into rivers, Hannstar is in the science park and

the waste water is legally under sewage control factories of the science park. We have been

followed the rules and never discharge in any other way. So there is no relative risk of violation

on illegally discharges waste water for us.

Note

1. Re-use rate of waste= weight of reuse waste / weight of total waste

Waste intensity (KG/m2) Re-use rate of waste

Benefits for employees

HannStar offers the fair employment chance and wages with market competitiveness, comfortable working environment, subsidies of sporting club and art activity, and pay attention to local employment.

Occupational safety and human rights

Compliant to OHSAS 18001, we set up various kinds of legal committees and communication platform consistent with international regulations.

Training for staff

We develop system of complete training, offer support for diversified study, and set up "HannStar Academy " to share knowledge on management and expertise. Hannstar won Silver medal in national Quality Control Circle Competition, and TTQS silver medal in training for employees.

SocietySociety

Labor and Human Rights○


34

HannStar' s Core values

Execution, Integrity, Innovation, Customer orientation and Team work are core values

HannStar shares, and according the core values we developed the working principles for

staff and share the values to customers and suppliers. We hope to plant it in each colleague's

working attitude and behavior deeply. We welcome whoever shares these values join us.

Execution

InnovationIntegrity

Customerorientation

Team work

HannStar' s Core Values

Benefits for Employees

Talent is one of the powerful weapons when a company faces external competition.

From the beginning stage, HannStar has input considerable resources on training, working

environment and various kinds of benefit systems for employees. We hope make staff

comfortable so that they can have brilliant performances.

Labor and Human Rights Hannstar

35



Staff Structure

HannStar group offers the fair employment chance between genders, and the salary level

is compliant to the labor law of minimum salary and based on personal ability and qualification,

regardless of age, sex, working area, or sex orientations. Hannstar has 2,290 employees and

the staff who has worked in HannStar for more than five years account for 46% and relatively

stable.

Distribution of age and gender in main production area

Male Female

0%Taiwan China

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

42.97%

57.03%

55.19%

44.81%

Age Gender

Taiwan China

% in totalHigh level

management1 % in totalHigh level

management1

Under 29 Male 14.59% 0.00% 30.02% 0.00%

Female 11.44% 0.00% 36.96% 0.00%

30~49Male 42.07% 66.67% 14.42% 50.00%

Female 31.35% 33.33% 18.07% 0.00%

Above 50 Male 0.36% 0.00% 0.38% 37.50%

Female 0.18% 0.00% 0.16% 12.50%

TotalMale 57.03% 66.67% 44.81% 87.50%

Female 42.97% 33.33% 55.19% 12.50%

Distribution of age and gender in main production area.

Note

1. Means the Associate level executives (including) and above


36

Local Employment

Importance of corporate responsibility in the manner of appointment, a large number of

employees into the local nationality.

Distribution of nationality and job rank of staff 1

Taiwanese natives

Chinese natives

Philippine natives

0%Manager worker Manager worker

Taiwan China

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

12.0%

81.4%

3.7%

5.81%

90.42%6.67%

Benefits for full-time employees

Talents are Hannstar's most important assets. Considering the company's performance,

regulations, employee's yearly performance, we offer higher-than-average salaries package

to employees. We share profits to retain and encourage outstanding talents. In 2012, the

employee wages and benefits total NTD1.96bil.

The following are our benefits：

◆ Comfortable commuting bus, coffee bar, library, the vacation system better than

regulations, free annual health examination, medical service in the factory, single dorm,

and retirement fund compliant to the law.

◆ Lunar-year dinner, spring outing and family's day.

◆ Department's travel, diversified clubs and contest like handcraft, basketball, softball, table

tennis, and badminton.

◆ Nursery room and equipment

◆ Resting beds of pregnant colleagues

◆ Reward for innovation, application for patent, exemplary staff.

Note

1. Means the class-level cadres (including) above managerial personnel and technical staff

37



Medical service bulletin

Improvement on employee' s daily life◆ Activity center in Nanjing factory

◆ The satisfaction ratio on food rised to 85% in Tainan factories

◆ Employee can enjoy discount as a corporate member when takingTaiwan high speed railway

Confortable working environment Restaurant

Employee' s blood-donating activity

Free commuting bus


38

Swimming club' s Sun-moon-lake event

Golf club

Softball match in Conning cup

Marathon in South Science Park

Quit smoking activity

39



39

Christian music concert

Christian music concert

Spring Christian music event

Cake designing Mother' s Day

Foreign employees' travel

Autumn Bicycling

Staff Link promotion activities


40

Occupational Health and Safety

HannStar is verified with OHSAS 18001 and equipped with the environmental and safety

committee. The percentage of workforce represented in the committee is over one thirds. We

hold meetings quarterly to implement management-worker affairs.

Education and prevention about the diseases for the staff

Health Examination

Health and care seminar

Safety seminar held

Masks against the influenza on commuting bus

Specific exams for female employees

Yearly health examination / analysis / prevention seminar

Blood-donating activity, 4 times a year and 301 bags toatlly

Press-releasing lecture/First aid course/ Daily caring seminar / psychological lecture

Overwork-preventing seminar

Vegetarian diet

The vaccine injection--133 employees took it.

Weight-losing contest

Human Rights

HannStar has never set limits on freedom of speech and collective bargain and HR policy

specifies no compulsory labor or any discrimination.

HR policy is set up following labor laws and relative regulations, and specifies no labor

under age of 16 can be hired. HR staff checks new comers’ ID to avoid child labor. So far

HannStar has never employed any child labor.

41



Professional and general training for employees

HannStar is convinced that talents are the key elements that help enterprises succeed,

so not only recruit talents we also develop employee training. We provide systematic lectures

and resources to strengthen manpower quality to reach our goals. The diversified training

encourages every employee focusing on job. We also set up " HannStar Academy", a system to

help staff to upgrade ability on management and professions by traditional learning or e-learning.

And one of its functions “On-line Library” has been on-line in 2012.

HannStar Vision and Mission

Working Group

Exert my Professionalism& Potential

Annual Strategy &

Target

TrainingPlans

(7 Programs)Expertise Evaluations Improvemant

（I）Development & Framework of Training

After the rookie training, HannStar invites internal and external experts to

carry on following professional training program for staff: production, quality control,

marketing, HR, research and development, financial affairs, information, legal affairs,

environment and safety, etc.. In 2012, HannStar’s total training courses are up to

231, and training hours per person are 7.7 hours：

1. Professional Training 6. Market Training

2. Quality Training 7. Environmental and Safety Training

3. Management Training 8. Certification Training

4. Operation Training 9. Internal Lecturer Training

5. General Training 1. Plan for Internal Manager

2009 2010 2011 2012

Total training hours 59,115 94,172 90,045 16,380

Training hours per person 25.0 37.4 34.5 7.7


42

（II）Honored with TTQS silver medal

Labor committee of Executive Yuan investigated HannStar in 2011 August for

employee’s training quality. HannStar is honored with TTQS silver medal. (Effective

till 2013Dec31.)

（III）Knowledge Management System

1. Quality control center' s KM system offers relevant expertise,

management, technology on quality control, and introduces 6 Sigma

method to continuously improve the ability of production and personnel.

91 persons won grade 2 and 37 grade 1 till 2012/12/31.

43



2. E-paper of HannStar academy provides information of economy, editorial, industry's

news, article to share etc..

（IX）Management Training

We train with plans for internal management personnel and take integrity into

account.

Programs to develop excellent managers

Active Leading

Accountability & Execution

Self-recongnition

Root cause analysis

Communication technique

Team member develope

Set up and encourage a team

Strategic Leading

Coaching ability

High performance team

Accountability & Execution

Innovation and & Management

Creative thinking

Strategic human resource manavement

Goal set-up and performancemanagement


44

Programs to develop excelle manager

Manager team camp

Programs to develop excelle manager

45



（X）Training for Internal Lecturers

HannStar sets up a system and funds to train employees to become lecturers to

not only share experiences and brainstorm special cases within the industry, but also

teach techniques and the professional ability on lecture.

Internal lecturer is giving a lecture

（XI）Self-development

In addition to professional knowledge and the skill mentioned above, HannStar

irregularly holds lectures on various topics like health, mind-growing, and put them on

on-line system, technological library and all kinds of on-line communities. We hope

our staff can study lots of topics anywhere and anytime.

Inspiring lecture from the ALS patient/ writer Mr. Hsiao

Library of technical documents

Letter of appointment for internal lecturer


46

Hannstar quarterly Digital learning

HannStar Academy

HannStar Academy—providing complete on-line training

‧ Knowledge-sharing

Employees can public or browse learning experience, teaching documents and exchange

relevant information.

‧ Approval processes

Employees can apply and approve any lectures online and receive notices about the lectures.

‧ Comprehensive contents

Substantive content of the multi-levels and purposes, like procurement process, QC080000

provisions, Green Product Concept, gender equality in Employment Act, etc..

47



‧e-learning platform.

‧ Personal Training Records

Management

Employees can set up personal

targets and query required

courses f rom in te rna l and

external lecturers, and follow

the learning plan step by step,

including al l ver i f icat ion or

training programs held domestic

and internationally.


48

‧Homepage of HannStar Academy

Learning path planning (scheduled on-line in Q4 2013)

For certain target or position, employees can have a clear understanding of vertical and

horizontal development of the necessary skills, and can receive a blueprint for future

planning and inventory all required courses and qualification requirements. Hannstar can

also have prompt control of quality of human resources.

Learning path for Finance

Common

staff

Senior

staff

Department

manager

Division

manager

Center

manager

Learning path for Administrative Management

Common

staff

Senior

staff

Department

manager

Division

manager

Center

manager

SocietySociety

Support to society○

Philanthropies

We donate to those with visual disturbance, and consume specific products in specific social associations. We also recycle the discarded toner cartridges and donate them and LCD monitors and notebooks to the disadvantaged minority.

Communities

Communuting by bus and bicycle is encouraged to reduce air pollution and traffic risks to the nearby community. We plant trees in the science park.

Arts and culture engagement

We encourage art participation, movie appreciation, and inspiring lectures.


50

Hannstar' s support to the society

Hannstar

Support to society

Since 2004 Hannstar has engaged

in renewable resources, and responded to EPA' s

program "second-hand computer recycling donation",

donating the second-hand computers and screens to Triple-E

Institute and other institutions. These institutions then sent them

to remote areas, low-income families and disadvantaged groups to

reduce urban-rural educational distances and to promote environmental

protection. Hannstar got actively involved herself in this program during

2010 ~ 2012, cumulatively 1,313 LCD monitors donated in the 3 years

and 702 in just 2012.

In addition, responding to needs for computers from Atayal tribe,

located in Cihfong Tribe in Hehuan Mountain, 1,600 meters

high, Hannstar rapidly donated computers for

computer programs of schoolchildren in

summer vacation.

World V

ision booth in Hannstar Family's Day

Hannstar

donated the notebooks

for homeless or violated

children to help them to be

access to the internet for

knowledge.

Ⅰ

Philanthropies

51


Support to society

Employees often make grocery

purchases from disadvantaged groups

and company events

are often linked to charity.

For example, World Vision

foundation' s booth showed

in Hannstar' s Family Day

to teach employees '

children to care for

those in need.

Target institutions 2010 2011 2012

Triple-E Institute15” LCD,

200sets15” LCD, 111sets 15” LCD, 464sets

“Green Miracle

Recycle”

commissioned by

Qi-he Rotary Club in

Kaohsiung

15” LCD, 200sets 15” LCD, 195sets

Yang-Mei vertebra

treating center

15” LCD, 100sets.

Around 100 recycled

toner cartridges

Cihfong Tribe community

mini notebook, 20sets

17” LCD, 20sets

Le-Huo Orphanagemini notebook, 8sets

17” LCD, 23sets

Products for CSR donated by Hannstar from 2010~2011

Objects Amount

Heavenly Bread Church (for charity purpose) 315,000

Bread of Life Christian Church in Taipei (for charity purpose) 175,000

Hui-Ming Home for the Blind

14,700+

Water filter machine

Hui-Ming School for the Blind48,300

+ accordion

Total 553,000


52

Lecture of the writer

with ALS disease

Lecture of Mr. Hsiao,

the winner of Phoenix

Literary Prose Prize of

Cheng Kung University

and ALS patient.

Planting to reduce GHG.

Mr.

Hsia

o

Ⅱ

Communities

Ⅲ

Arts and culture

engagement

53


Support to society

Children's Troupe

We encourage art participation

l ike holding events l ike movie

appreciation and troupes to educate

employees and their family and

inspiring lectures.

Life

of P

i, dire

cted by Taiwanese director, Ang, Lee

GRI G3.1Content Index

55


GRI G3.1 Content Index

Profile Disclosure

Description

Reported●Fully

○○Partially

○Not

Remarks/Reasons

foromission

Overview

Strategy and Analysis

1.1Statement from the most senior decision maker of the organization.

● 4

1.2Description of key impacts, risks, and opportunities.

● 4,5

Organizational Profile

2.1 Name of the organization. ● 2

2.2Primary brands, products, and/or services

● 1

2.3

Operational structure of the organization, including main divisions, operating companies, subsidiaries and joint ventures.

● 12

2.4Location of organization’s headquarters

● 2

2.5

Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report.

● 2,9

2.6Nature of ownership and legal form

● 8

2.7

Markets served (including geographic breakdown sectors served, and types of customers/beneficiaries).

● 9

2.8Scale of the reporting organization

● 9


56

Organizational Profile

2.9Significant changes during the reporting period regarding size, structure, or ownership

●

56.General manager quit. The former

president became CEO and the board members

changed by 1/3.

2.10Awards received in the reporting period

● 33,42

Report parameters

3.1Repor t ing per iod (e .g . , f iscal/calendar year) for information provided.

● 2

3.2D a t e o f m o s t r e c e n t previous report

● 2

3.3 Reporting cycle ● 2

3.4Contact point for questions regarding the report or its contents.

● 2

3.5Process for defining report content

● 16

3.6Boundary of the report. See GRI Boundary Protocol for further guidance

● 2

3.7State any specific limitations on the scope or boundary of the report

● 2

3.8

Basis for reporting on joint ventures, subs id iar ies , leased facilities, outsourced o p e r a t i o n s , a n d o t h e r entities that can significantly affect comparability from period to period and/or between organizations.

● 2

57



Report parameters

3.9

D a t a m e a s u r e m e n t t e c h n i q u e s a n d t h e bases o f ca lcu la t i ons , inc lud ing assumpt ions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report.

● 2

3.10

Explanation of the effect of any re-statements of i n f o r m a t i o n p r o v i d e d in ea r l i e r repor ts , and the reasons for such re-statement

● 2

3.11

Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report.

●

2.No

significant changes

from previous report.

3.12Ta b l e i d e n t i f y i n g t h e location of the Standard Disclosures in the report.

● 54

3.13Policy and current practice with regard to seeking external assurance for the report.

● 57

Governance, Commitments,

and Engagement

4.1

Governance structure of the organization, including c o m m i t t e e s u n d e r t h e highest governance body responsible for specif ic tasks , such as se t t i ng strategy or organizational oversight.

● 12

4.2

Indicate whether the Chair of the highest governance body is also an executive officer

●

58The Chair of the highest governance body is not

an executive officer.


58


and Engagement

4.3

For organizations that have a unitary board structure, s t a t e t h e n u m b e r a n d gender of members of the highest governance body that are independent and/or non-executive members.

● 13

4.4

M e c h a n i s m s f o r s h a r e h o l d e r s a n d e m p l o y e e s t o p ro v i d e r e c o m m e n d a t i o n s o r direct ion to the highest governance body.

● 13,17

4.5

L i n k a g e b e t w e e n compensation for members of the highest governance body, senior

● 14

4.6

managers, and executives ( i n c l u d i n g d e p a r t u r e arrangements), and the organization’s

● 14

4.7per formance ( including social and environmental performance).

●

59.2012 Annual

report1 P8~11

4.8

Processes in place for the highest governance body to ensure conflicts of interest are avoided.

● 1, 4,5,14, 34

4.9

Process for determining the composition, qualifications, a n d e x p e r t i s e o f t h e members of the highest governance body and its committees, including any consideration of gender and other indicators of diversity.

● 12

Note

1. Web：http://www.hannstar.com/Common.aspx?mid=35&tmid=4&modid=5

59




and Engagement

4.10

Processes for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental, and social performance.

● 123

4.11

Explanat ion of whether and how the precautionary app roach o r p r i nc ip l e i s a d d r e s s e d b y t h e organization.

● 12

4.12

E x t e r n a l l y d e v e l o p e d economic, environmental, a n d s o c i a l c h a r t e r s , principles, or other initiatives to which the organization subscribes or endorses.

● 12

4.13

M e m b e r s h i p s i n assoc ia t i ons ( such as industry associations) and/or national/international.advocacy organizations in which the organization: • H a s p o s i t i o n s i n g o v e r n a n c e b o d i e s ; • Participates in projects or committees; • Provides substantive funding beyond routinemembership dues; or • Views membership as strategic.

● 12

4.14L i s t o f s t a k e h o l d e r groups engaged by the organization.

● 16,17

4.15Basis for identification and selection of stakeholders with whom to engage.

● 16

4.16

Approaches to stakeholder engagement , inc lud ing frequency of engagement by type and by stakeholder group.

● 16,17


60


and Engagement4.17

Key topics and concerns tha t have been ra i sed t h r o u g h s t a k e h o l d e r engagement, and how the organization has responded to those key topics and concerns, including through its reporting.

● 18

Economic Management Approach ● 8,12

Economic performance

EC1

Di rec t economic va lue generated and distributed, i n c l u d i n g r e v e n u e s , operating costs, employee compensation, donations a n d o t h e r c o m m u n i t y i n v e s t m e n t s , re t a i n e d earnings, and payments to capital providers and governments.

● 11,36,51

EC2

Financial implications and other risks and opportunities f o r t h e o r g a n i z a t i o n ' s activities due to climate change.

○

Market presence

EC3C o v e r a g e o f t h e o rgan iza t ion 's de f ined benefit plan obligations.

● 36

EC4S i g n i f i c a n t f i n a n c i a l assistance received from government.

●61.

None

EC5

Range of ratios of standard entry level wage by gender compared to local minimum wage at significant locations of operation.

● 34

EC6

Po l i cy, p rac t i ces , and proportion of spending on local ly-based suppl iers at significant locations of operation.

○

61



Market presence EC7

Procedures for local hiring and proportion of senior management hired from the local communi ty at s igni f icant locat ions of operation.

● 36

Indirect economic impacts

EC8

Development and impact of infrastructure investments and serv ices prov ided primarily for public benefit t h r o u g h c o m m e r c i a l , i n - k i n d , o r p r o b o n o engagement.

○○ 51

EC9

U n d e r s t a n d i n g a n d desc r ib i ng s ign i f i can t indirect economic impacts, inc luding the extent o f impacts.

○

Environment Management Approach ● 20

Materials

EN1Materials used by weight or volume.

○

EN2Percentage of materials used that are recycled input materials.

○

Energy

EN3Direct energy consumption by primary energy source.

○

EN4Indirect energy consumption by primary source.

● 31

EN5E n e r g y s a v e d d u e t o conservation and efficiency improvements.

● 27

EN6

Initiatives to provide energy-e f f i c i en t o r renewab le energy based products and services, and reductions in energy requirements as a result of these initiatives.

○


62

Energy EN7Initiatives to reduce indirect energy consumption and reductions achieved.

○○ 27,30

Water

EN8Total water withdrawal by source.

● 23

EN9Water sources significantly affected by withdrawal of water.

○

EN10P e r c e n t a g e a n d t o t a l volume of water recycled and reused.

○

Biodiversity

EN11

Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas.

○

EN12

Description of significant i m p a c t s o f a c t i v i t i e s , products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas.

○

EN13H a b i t a t s p ro t e c t e d o r restored.

○

EN14

S t r a t e g i e s , c u r r e n t actions, and future plans for managing impacts on biodiversity.

○

Biodiversity EN15

N u m b e r o f I U C N R e d List species and national conservation list species w i t h hab i t a t s i n a reas affected by operations, by level of extinction risk.

○

63



Emissions, effluents and

waste

EN16Total direct and indirect greenhouse gas emissions by weight.

● 22

EN17Other re levant ind i rect greenhouse gas emissions by weight.

○

EN18I n i t i a t i v e s t o r e d u c e greenhouse gas emissions and reductions achieved.

● 22

EN19E m i s s i o n s o f o z o n e -depleting substances by weight.

○

EN20N O x , S O x , a n d o t h e r significant air emissions by type and weight.

○

EN21Total water discharge by quality and destination.

○

EN22Total weight of waste by type and disposal method.

○○ 32

EN23Total number and volume of significant spills.

●64.

None

EN24

Weight o f t ranspor ted, impor ted, expor ted, or t rea ted was te deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, a n d p e r c e n t a g e o f transported waste shipped internationally.

●64.

None

Emissions, effluents and

wasteEN25

Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting organization's discharges of water and runoff.

○○ 23


64

Products and services

EN26

I n i t i a t i v e s t o m i t i g a t e environmental impacts of products and services, and extent of impact mitigation.

○○ 27

EN27

Percentage of products sold and their packaging materials that are reclaimed by category.

○

Compliance EN28

Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations.

●32.

None

Transport EN29

Significant environmental impacts of transpor t ing products and other goods and materials used for the organization's operations, and transporting members of the workforce.

○○ 29

Overall EN30To t a l e n v i r o n m e n t a l protection expenditures and investments by type.

○

Labor Management Approach ● 34

Employment LA1

T o t a l w o r k f o r c e b y e m p l o y m e n t t y p e , employment contract, and region, broken down by gender.

○

Employment

LA2

Total number and rate of new employee hires and employee turnover by age group, gender, and region.

○

LA3

Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations.

● 36

65



Labor/management

relations

LA4Percentage of employees c o v e re d b y c o l l e c t i v e bargaining agreements.

○

LA5

Minimum notice period(s) r e g a r d i n g s i g n i f i c a n t o p e r a t i o n a l c h a n g e s , inc lud ing whether i t i s spec i f i ed in co l lec t i ve agreements.

○

Occupational health and safety

LA6

P e r c e n t a g e o f t o t a l workforce represented in formal joint management-worker health and safety c o m m i t t e e s t h a t h e l p mon i to r and adv ise on occupational health and safety programs.

● 40

LA7

Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region and by gender.

○

LA8

E d u c a t i o n , t r a i n i n g , counsel ing, prevent ion, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases.

○○ 40

LA9

H e a l t h a n d s a f e t y topics covered in formal agreements w i th t rade unions.

○

Training and education

LA10

Average hours of training per year per employee by gender, and by employee category.

○○ 41


66

Training and education

LA11

P r o g r a m s f o r s k i l l s management and lifelong learning that support the continued employabil i ty of employees and assist them in managing career endings.

○○ 41

LA12

Percentage of employees r e c e i v i n g r e g u l a r performance and career development reviews, by gender.

○

Diversity

and equal

opportunity

LA13

Composition of governance bodies and breakdown of employees per employee ca tegor y a ccord ing to gender, age group, minority group membership, and other indicators of diversity.

○

Equal remuneration for women and men

LA14

Ratio of basic salary and remuneration of women to men by employee category, by significant locations of operation.

○

Human rights Management Approach ● 34

Investment and procurement

practices

HR1

Percentage and total number of significant investment agreements and contracts that include clauses incorporating human rights concerns, or that have undergone human rights screening.

○

HR2

Percentage of significant suppliers, contractors and other business partners that have undergone human rights screening, and actions taken.

○

67



Investment and procurement

practicesHR3

Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained.

○

Non-discrimination

HR4Total number of incidents of discrimination and actions taken.

○

Freedom of association

and collective bargaining

HR5

Operations and significant supp l i e rs iden t i f i ed i n which the right to exercise freedom of association and collective bargaining may be violated or at significant risk, and actions taken to support these rights.

○○ 40

Child labor HR6

Operations and significant suppl ie rs ident i f ied as having significant risk for incidents of child labor, and measures taken to contribute to the effective abolition of child labor.

○○ 40

Forced and compulsory labor

HR7

Operations and significant suppl ie rs ident i f ied as hav ing s ign i f i can t r i sk for incidents of forced or compulsor y labor, and measures to contribute to the elimination of all forms of forced or compulsory labor.

● 40

Security practices

HR8

Percentage of secur i ty personnel trained in the organization's policies or procedures concerning aspects of human rights t h a t a r e r e l e v a n t t o operations.

○


68

Indigenous rights HR9

Total number of incidents of violations involving rights of indigenous people and actions taken.

○

Assessment HR10

P e r c e n t a g e a n d t o t a l number of operations that have been subject to human rights reviews and/or impact assessments.

○

Society Management Approach ● 34

Local communities

SO1

Percentage of operations wi th implemented local community engagement, impact assessments, and development programs.

○

SO9

Operations with significant p o t e n t i a l o r a c t u a l negative impacts on local communities.

○

Local communities

SO10

Prevention and mitigation measures implemented in operations with significant p o t e n t i a l o r a c t u a l negative impacts on local communities.

○

Corruption

SO2

P e r c e n t a g e a n d t o t a l number of business units analyzed for risks related to corruption.

○

SO3

Percentage of employees trained in organization's anti-corruption policies and procedures.

● 14

SO4Actions taken in response to incidents of corruption.

○

69



Public policy

SO5Public policy positions and participation in public policy development and lobbying.

○

SO6

Total value of financial and in-kind contr ibut ions to political parties, politicians, and related institutions by country.

○

Anti-competitive behavior

SO7

To t a l n u m b e r o f l e g a l actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes.

● 15

Compliance SO8

M o n e t a r y v a l u e o f significant fines and total number of non-monetary s a n c t i o n s f o r n o n -compliance with laws and regulations.

○

Product Responsibility Management Approach ● 20

Customer health and safety

PR1

Life cycle stages in which health and safety impacts of products and services are assessed for improvement, a n d p e r c e n t a g e o f significant products and services categories subject to such procedures.

● 24

PR2

Total number of incidents of non-compliance with regulations and voluntary codes concerning health and sa fe t y impac ts o f p roducts and serv ices during their life cycle, by type of outcomes.

○


70

Product and service labelling

PR3

Ty p e o f p r o d u c t a n d service information required b y p r o c e d u r e s , a n d percentage of significant p roducts and serv ices subject to such information requirements.

○

PR4

Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes.

○

PR5

P r a c t i c e s r e l a t e d t o cus tomer sa t i s fac t i on , including results of surveys m e a s u r i n g c u s t o m e r satisfaction.

○

Marketing communications

PR6

Programs for adherence t o l a w s , s t a n d a r d s , a n d v o l u n t a r y c o d e s r e l a t e d t o m a r k e t i n g communications, including advertising, promotion, and sponsorship.

○

PR7

Total number of incidents of non-compliance with regulations and voluntary c o d e s c o n c e r n i n g marketing communications, i nc l ud ing adve r t i s i ng , promotion, and sponsorship by type of outcomes.

○

71



Customer privacy

PR8

T o t a l n u m b e r o f substantiated complaints regard ing breaches o f c u s t o m e r p r i v a c y a n d losses of customer data.

○

Compliance PR9

Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services.

●

None72


72

English statement

hannsg · address：no. 35, nanke 2nd road, xinshi dist., tainan city 741, tainan science...

Documents