Corporate Governance

Board of Directors
Ethical Management
Risk Management
Data Protection and Privacy
Sustainable Construction
Supply Chain Management
Board of Directors
  • TCC Board of Directors has 5 independent directors; in particular, 4 directors have backgrounds in accounting and law
  • 4 female directors, accounting for 26.66%, in which 3 are independent directors
  • 12 directors have cement industry backgrounds
  • TCC Board of Directors has set up many functional committees to strengthen and enhance the monitoring and management functions
  • The total hours of professional development for the members on the Board of Directors in 2022 were 150.5 hours . Those of the risk management courses were 63.5 hours, and those of ESG-related courses were 86.5 hours



Ethical Management
  • In 2021, TCC obtained the certification of ISO 37001 Anti-bribery Management Systems. Among the Operation Headquarters as well as the Taipei Plant, Taichung Plant, Kaohsiung Plant, Hoping Plant, and Suao Plant thereunder, the Operation Headquarters was the first to be certified
  • In response to the emerging issues in legal compliance, the compliance with anti-money laundering, anti-corruption, environmental, health and safety, etc. are incorporated in our standard contracts as the terms for the business relationship between business partners and TCC. The Legal Office rigorously reviews contracts to ensure all the relevant terms are covered in the business documents
  • Code of Ethical Conduct and related policies are on the Company’s official website and in the internal portal for employees to easily obtain the comprehensive policies to strengthen the Company’s beliefs
  • In 2022, the ISO 37001 system procedures and forms were revised to include a "Code of Conduct for Middle-to-High-Risk Personnel“, tailored to differentiate content for individuals assessed as having medium-to-high risks. Prior to transfer or promotion, due diligence is performed. Additionally, the "Business Partner Corruption Risk Assessment and Due Diligence Procedures" now include targets for the first assessment of new vendors and regular assessment of existing vendors, to optimize the necessary management procedures for ethical management

New recruits
(part-time and casual employees included)
are required to sign on “Code of Integrity and Ethics Statement” while starting work; within 90 days thereafter the one-on-one elaboration on Company’s anti-corruption and anti-bribery policies shall be completed with records to ensure his/her clear understanding of the regulations and avoid any misconduct. A 100% signing rate of all new recruits was achieved in 2021 and 2022
Active employees
(part-time and casual employees included)
Each employee must attend annual anti-corruption and anti-bribery training programs and maintain attendance records. It is important to have a comprehensive understanding of operational standards and the potential risks of non-compliance. In 2021, a total of 134 hours of anti-corruption training were conducted, increasing to 184 hours in 2022. Additionally, specialized training lasting up to 60 hours was provided in 2022 for employees involved in corruption assessment related to customer or supplier interactions and departmental procedures
Directors
receive the Company’s anti-corruption and anti-bribery education and training course materials via mail or hardcopy at least once a year and are required to sign on the “Letter of Commitment for Compliance with Ethical Management, Anti-corruption, and Anti-Bribery”. ALL Directors have received relevant education and trainings and signed on the Letter of Commitment in 2021 and 2022
Suppliers
are communicated regarding the spirit of ethical management by means of mail, Suppliers Convention, etc., and all suppliers are required to sign on the Supplier Code of Conduct, in which items related to ethical management are included
Contractors
trainings are conducted while entering TCC’s sites; courses are completed in June 2022, and the trainings for outsourcers (e.g., the security guards) are also completed in June 2022

Anti-trust/Anti-competitive practices
Protecting reasonable business competition orders is a crucial commitment to Ethical Corporate Management. Taiwan Cement Company has always prohibited from the employees destroying free market mechanism by the violation of Fair Trade Act such as monopoly or share allocation

  • Dedicated unit: The employees’ abidance and protocols towards competition laws are supervised by the Legal Office
  • Protocols:
    1. If there are employees under investigation by the competent authority concerning competition law abidance, the following people should be notified immediately: manager and head of the department, and the Legal Office
    2. The Legal Office should understand the situation and corresponding competition laws. If there are risks of violations, the Legal Office should report to the management, seek assistance from external lawyer, and take responsive actions as soon as possible
    3. If the supplier violate or to be suspected to violate competition laws, relevant units should report to the Legal Office, and require the supplier to stop illegal conduct and coordinate with the competent authority’s investigation
  • Regulations: The employees should abide by Ethical Corporate Management Best Practice Principles and Fair Trade and Antitrust Compliance Guidelines , to protect fair trade and decrease the Company’s possible legal risks and negative effects caused by the illegal conducts
  • Trainings: Managers and business-related employees should receive fair trade training regularly
  • Discussions about sensitive information should be avoided in daily work, such as price, amount, capacity, counterparty, market share distribution, etc.; and attendance of social occasions involving the mentioned information should also be refused. Meanwhile, stay alert when fellow workers mentioning about such information
ISO37001
The Whistleblower Channel
  • TCC official website and internal portal both have an employee suggestion inbox: TCCsuggestion@taiwancement.com
  • Confidential and secure whistleblower channel: employees and external stakeholders can provide suggestions or notify of any wrongdoing. If the report is anonymous, complete relevant information and documents must be provided: tccwhistle@taiwancement.com
  • The Reporting Mechanism for Violation of Code of Conduct was amended in 2020 to clearly define the scope of application while introducing mechanisms like confidentiality in the investigation process and whistleblower protection. In 2021, matters concerning the confidentiality in the investigation process and the whistleblower protection mechanism were detailed. The Audit Committee was listed as the additional reporting channel. In any misconduct involving the senior management, the whistleblower may choose to report to the Audit Committee directly
  • Cases Reported, 2019-2022
Whistleblower
Inbox		 Audit Committee
Inbox		 Employee Grievances
Inbox		 Cases Reported Regarding Violations
of Ethical Management Policies		 Cases involving discrimination or harassment
2019 0 1 7 2 N/A
2020 10 1 12 13 N/A
2021 4 7 12 7 N/A
2022 9 6 15 12 1
Risk Management



Data Protection and Privacy
  • Policy
    TCC Group aims to protect important information systems and the privacy, comprehensiveness and usability of data. The Information Security Management Committee was established following the ISO 27001 Information Security Management to set up data security standards and assessments. The administrative review and examination of the information security policy and relevant regulations in every December ensure an effective implementation of information security protection. TCC Group Information Security Policy was stipulated in 2022
  • Management Approaches
    ISO 27001 Information Security Management System obtained in January, 2021, and passed external recertification audits continually (2021/12 & 2023/01). Committed to the protection of the confidentiality, integrity, and availability of critical information system and data of the Group. the Committee is responsible for the promotion and review of the information security management system of TCC as well
  • Organizational Structure
    TCC established the Information Security Management Committee in 2020. Within the Board of Directors, there is one director with information security experience
    In 2022, a Chief Information Security Officer (CISO) was appointed and a dedicated information security team were instituted for the implementation and promotion of information security of the Group. The CISO serves as the committee chair and reports to the Board of Directors on a regular basis. The Committee convened 4 sessions, with a special focus on the improvement of the information security of energy business

Organizational Structure
Information Security Objective
Sustainable Buildings
  • Management Approaches
    TCC cares deeply about environmental balance and sustainable development. Therefore, the company has encouraged RMC clients to apply for green building certifications to promote the symbiosis of buildings and the environment to achieve a sustainable environment
  • Results and Targets
    By 2025, TCC aims to achieve a revenue share of concrete used in green buildings that accounts for over 5% of the overall concrete revenue. By 2030, strive to surpass 6% revenue share

Note: The percentage of green building applications returned to normal because the huge construction projects came to their ends and that some clients from the tech sector postponed the progresses of plants under construction in 2022
Supply Chain Management
  • Policy
    TCC Group aims to maintain supply chain consistency on product quality, cost, delivery time, service quality, environmental safety and sanitation, and manufacturing. To achieve this, the Group established Supplier Management Policy, Supplier Code of Conduct, and Green Procurement Policy to jointly protect the environment, human rights, and sustainable resources for businesses with the suppliers. A joint effort to promote corporate social responsibility and a sustainable supply chain

  • Six Major Categories of Green Procurement Policy



  • Progress and Target of Supplier Assessment Program
    2022 Progress 2022 Targets
    Number of suppliers assessed (written review and on-site inspection) 152 87
    % of significant suppliers assessed 98.85% 100%
    Results of Supplier Assessment
    Number of suppliers assessed with substantial actual/ potential negative impacts 9 NA
    % of suppliers with substantial actual/potential negative impacts with agreed corrective action/improvement plan 100% 100%
    Number of suppliers with substantial actual/potential negative impacts that were terminated 0 NA
    Progress and Target of Corrective Action Plan
    Number of suppliers supported in Corrective Action Plan implementation 9 NA
    % of suppliers assessed with substantial actual/potential negative impacts supported in Corrective Action Plan implementation 100% 100%
    Progress and Target of Capacity Building Program
    Number of suppliers in Capacity Building Program 144 87
    % of significant suppliers in Capacity Building Program 94.25% NA
    Note: In order to improve supplier sustainable resilience, TCC deepens the sustainability performance of suppliers and partners on carbon management and sustainable governance

  • 2022 Procurement Portal
    ◤ 100% of high risk suppliers blocked
    ◤ The addition of a group code verification system has been implemented, with a 100% blockage rate for screening and blocking associated suppliers
    Supply Chain Management Green Procurement Policy
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