20130806李長榮英文版 P1-P18.ai

Transcription

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LCY
2011 LCY CHEMICAL CORP.
Corporate Social Responsibility Report
Editing Principles
LCY CHEMICAL CORP. has long devoted itself to developing environmental health and safety systems, and has
always applauded actions of Responsible Care being carried out within the chemical industry, and participated in
social and cultural development and community actions. In order to communicate with the majority of
stakeholders from a broader perspective regarding our long-term commitment to corporate social responsibility
(CSR), as well as our practice and performance results, in 2012, LCY CHEMICAL CORP. for the first time,
published its CSR Report publicly, in which business activities along with economic, social, and environmental
projects were stated and communicated with the general public as well as the stakeholders of LCY CHEMICAL
CORP.
In the 2011 “LCY CHEMICAL CORP. CSR Report”, our gradual improvements and achievements in sustainable
development are presented. It is our hope that readers will find in our CSR Report the actions and events we have
participated in and our efforts devoted to green tech innovation, system management, and the social
responsibilities of a chemical corporation (including safety and disaster prevention, labor safety and health
education, environmental conservation, and chemicals management).
In order for more stakeholders to learn about our CSR performance, and taking environmentally friendly actions
into consideration, this report is also available in PDF format. You can download our 2011 “LCY CHEMICAL
CORP. CSR Report” from the Internet at
http://www.lcygroup.com/en/p4-she.asp
Reporting Period
This Report covers activities of the 2011 fiscal year (from Jan 1st to Dec 31st, 2011). Some projects may be dated
earlier from 2009 to 2010 in order to offer readers more complete information.
Scope of Information
This Report covers all sites under LCY CHEMICAL CORP. in Taiwan (including Taipei Head Office, Kaohsiung
Terminal Station, Kaohsiung Site, Siaogang Site, Linyuan Site, and Ta-she Site).
References
Sustainable development reporting guidelines (version G3.1) application level B+, Global Reporting
Initiative (GRI)
AA 1000 (2008) Type One, Moderate Level
This Report has been certified by SGS-Taiwan as conclusive evidence and meets the above mentioned
standards.
Publishing Date
First issue: August 2012
Next issue (scheduled): August 2014
Contact Information
LCY CHEMICAL CORP.
Address : (Chang-De Building) 4F, No.83, Sec. 4, Bade Rd., Taipei City 105, Taiwan (R.O.C.)
Tel : +886-2-2763-1611
Email address : lcy@lcygroup.com
Official Website : http://www.lcygroup.com
1
Message from the Chairman
My greetings to all readers of the first publication of “LCY CHEMICAL CORP. Corporate Social Responsibility
(CSR) Report”!
Having been established for almost half a century, LCY CHEMICAL CORP. has become a multi-national
enterprise with consolidated revenue of nearly NTD 45 billion through operational strategies, including expansion
of core businesses in energy and petrochemical, development of electronic chemical products and making
headway into the solar energy sector. We constantly mull over and keep in mind the issue of how to help stimulate
and promote local industries while benefiting the general public through industrial upgrade and development.
It is our goal to establish a world-class enterprise in Taiwan that offers green-tech, innovative and differentiated
products to distinguish LCY CHEMICAL CORP. as a world renowned sustainable enterprise with “innovation
DNA.” Over the years, LCY CHEMICAL CORP. has been paying close attention to global energy issues and
discerning industrial trends and risks. We actively promote high-end petrochemical products and focus on seeking
innovative ideas amongst ourselves and our chemical products. We employ advanced technologies to produce
eco-friendly and high-quality products, and strive towards creating high value-added specialty chemicals.
Through the continuous upgrade of our core business in the chemical sector and extending into green energy
business, we strive to gain better profits for the corporation while providing our society and our country with a
paradigm of forward-looking development and creating more job opportunity for the industry. These are what LCY
CHEMICAL CORP. see as our responsibilities to the society.
Besides developing relevant materials and ameliorating techniques, we also put our focus on low pollution and
high added-value products. Innovation in research and development is highly encouraged to support the
development of high-tech materials. I believe that through continuous innovation, an enterprise will never stop
growing. With every breakthrough, the whole company, working as a team can surpass its limits. This is how an
enterprise maintains its competitive edge while developing towards sustainable operations.
In 2011, we announced the establishment of a Corporate R&D Center at the Kaohsiung Site and plan to recruit over
500 R&D personnel in various specialties to join us in new technology R&D in the areas of solar energy, biomass,
and other green energy. When the R&D Center starts operation in 2012, our R&D expenditure is expected to
increase by NTD 400 to 500 million a year. We believe that our investment in R&D will bring opportunities for
sustainable growth and business upgrades.
We understand that high-value business is one of the focuses in business development; we also recognize
profoundly the importance of fostering R&D talents and believe that people are vital assets of the corporation.
Thus, we recruit employees possessing the merits of integrity, innovation, teamwork, and leadership and see
honesty as the first principle among them all. This is because we believe that when we work with our clients or
suppliers, integrity and honesty are the keys to sustainable relationship development.
In order to take better care of our employees, we work assiduously to provide them with a healthy and safe working
environment through introducing an international system for environmental safety and health standards. Furthermore,
we require the same environmental-friendly, healthy and safe processes during operation. Through inspection and
audit mechanisms, we work systematically with our suppliers to bring about environmentally friendly and low
carbon products. Through training programs, we encourage our employees to work on all kinds of possibilities and
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learn from small failures and brainstorms. We understand that the development of an enterprise is like a relay race,
thus it requires every single function in the corporation, from management to each individual, to learn efficiently
and adapt fast in order to face challenges from sustainable development.
In terms of social contribution, we have long devoted ourselves to nurturing young talented people in creativity
training through contests held by the Bowei Lee Education Foundation. The Foundation offers scholarships to
winners who successfully integrate creativity and chemical expertise in their projects. Through full range of
challenges, it is our hope that merits like integrity, innovation, team work, and leadership can be driven into the
new generation.
Looking towards the future, I am confident that LCY CHEMICAL CORP. will become a world-class
multi-national enterprise in the ensuing 20 years. When people speak of chemical corporations in Asia, they will
conjure up the name LCY CHEMICAL CORP. This is the challenge we are willing to undertake, and goal LCY
CHEMICAL CORP. is bound to achieve. It is my pleasure to lead LCY CHEMICAL CORP. towards realizing such
a dream and win the trust of the general public by fulfilling our social responsibilities to all.
Chairman of LCY CHEMICAL CORP.
3
CONTENTS
Editorial Principles - - - - - - - - - - - - - - - - - - - - - - - -01
Statement from the Chairman - - - - - - - - - - - - - - - - -02
Green
Chemical
Green Product Development - - - - - - - - - - - - - - - - - 44
Environmental Management - - - - - - - - - - - - - - - - - 45
Corporate Vision and Mission - - - - - - - - - - - - - - - - 06
Products and Services - - - - - - - - - - - - - - - - - - - - - -08
Operational Bases - - - - - - - - - - - - - - - - - - - - - - - - 12
Financial Performance Overview - - - - - - - - - - - - - - 14
Participation of External Organizations - - - - - - - - - - 15
Awards in 2011 - - - - - - - - - - - - - - - - - - - - - - - - - - 18
LCY CSR
Concept
Integrity of Governance - - - - - - - - - - - - - - - - - - - - -20
Risk Management - - - - - - - - - - - - - - - - - - - - - - - - -22
Financial Risks - - - - - - - - - - - - - - - - - - - - - - - - - - 23
Management Risks- - - - - - - - - - - - - - - - - - - - - - - - 24
Risks at Sites - - - - - - - - - - - - - - - - - - - - - - - - - - - -25
Research and Development - - - - - - - - - - - - - - - - - - 27
CSR Management - - - - - - - - - - - - - - - - - - - - - - - - 28
CSR Key Issues - - - - - - - - - - - - - - - - - - - - - - - - - -29
Communication with Stakeholders - - - - - - - - - - - - - 30
Energy and
Climate Change
GHG Emission Inventory Check - - - - - - - - - - - - - - -32
Products and Services Carbon Footprints - - - - - - - - -33
Video Conference Encouraged - - - - - - - - - - - - - - - - - - 34
for Less Energy Usage
Climate Change Hazard Prevention - - - - - - - - - - - - -35
Energy Saving at Sites - - - - - - - - - - - - - - - - - - - - - 36
Responsible
Care
4
Toxic Chemicals Management - - - - - - - - - - - - - - - - 46
Site Disaster Management - - - - - - - - - - - - - - - - - - 50
Environmental Footprint Overview - - - - - - - - - - - - -51
Environmental Protection Expenditures - - - - - - - - - -54
Occupational
Safety
and Health
Occupational Safety and Health Management - - - - - -57
Emergency Response Mechanism - - - - - - - - - - - - - -60
Hazard Types Analysis and Control - - - - - - - - - - - - 61
Supplier Management - - - - - - - - - - - - - - - - - - - - - -62
Friendly Labor
Management
Relations
Well-found Welfare Measures - - - - - - - - - - - - - - - - 68
LCY Welfare Committee - - - - - - - - - - - - - - - - - - - -69
Fair Treatment of Contracted Human Resources - - - -70
Talent Cultivation and Evaluation - - - - - - - - - - - - - -70
Potential Talent Assessment and - - - - - - - - - - - - - - - - -71
Evaluation Mechanism
Employee Health Enhancement Plan - - - - - - - - - - - -72
Social
Contribution
"Heritage and Innovation" Scholarship Program - - - - 76
New Generation Cultivation - - - - - - - - - - - - - - - - - -77
Scholarship Program Award CereZmony - - - - - - - - - - - -78
for Excellent Students Prize
Social Contribution Amount - - - - - - - - - - - - - - - - - 79
SGS Assurance Statement - - - - - - - - - - - - - - - - - - -80
GRI G3.1 Index - - - - - - - - - - - - - - - - - - - - - - - - - -82
Our vision is to become a world-class chemical corporation that offers exclusivity within the concept of
eco-friendly and sustainable development. It is our mission to seek breakthroughs, adapt flexibly, and provide
high-end quality products and services to suit the needs of our end user customers. With the passion we have
for growth and development, we are confident in our ability to lead our clients into a win-win situation where
our advanced operational model and complete manufacturing techniques will help create new values for all
sectors of industry around the world.
5
Established on November 6, 1965, LCY CHEMICAL CORP. produces petrochemical products that can be divided into 4
groups: Polypropylene (PP), Methanol, Solvent, and Thermoplastic Elastomers (TPE). Our products are used extensively
in healthcare, industry, and home applications, and have created several benchmarks amongst peers within the chemical
industry, including:
1.
2.
3.
4.
5.
First solvent manufacturer in Taiwan
First polypropylene manufacturer in Taiwan
Largest thermoplastic elastomers (TPE) producer in the world, with over 400,000 tonnes of output per year
Second largest producer of pentaerythritol (PENTA) and paraformaldehyde (PARA) in the world
First polysilicon manufacturer in Taiwan, with its own dock and fleet equipped to assist production and operation
In the history of Taiwan’s economic development, chemical industry has been playing the role of driving industrial
development by meeting the raw material demands of related industries. The emerging industries that the government has
been promoting, including information, communication, consumer electronics, precision machinery, automation,
advanced materials, specialty chemicals, pharmaceuticals, aerospace and pollution prevention, and control industries, are
all closely related to the chemical industry. Therefore, LCY CHEMICAL CORP. has been playing an important role
amongst them.
Currently, LCY CHEMICAL CORP. has 14 production sites, 42 production lines, 4 liaison offices, and 1 R&D Center,
with over 1,300 employees around the world. LCY CHEMICAL CORP. has become one of the major players in the field
of chemistry in Asia.
Beside the domestic market, our products have been exported around the world. We have long put effort into the research
for innovative technologies and invested vast amounts of resources into research and development over the past 40 years.
Other than enhancing the quality and service of the expertise we offer for our traditional products, we also keep in line
with the industrial trends to develop products of high-added value.
We are proud of our corporate culture, where simplicity and modesty are encouraged. We listen to our clients and strive
to meet their demands under the principles of sustainable development. We devote ourselves to maintaining a good
corporate image along with careful risk management geared towards an enterprise of sustainability and prosperity.
Corporate Vision and Mission
Our vision is to become a world-class chemical corporation that offers differentiated products within the concept of
eco-friendly and sustainable development. It is our mission to seek breakthroughs, adapt flexibly, and provide high-end
quality products and services to suit the needs of our end user customers. With the passion we have for growth and
development, we are confidant in our ability to lead our clients into a win-win situation where our advanced operational
model and comprehensive manufacturing knowhows will help create new values for all sectors of industry around the
world.
6
Important Events of LCY CHEMICAL CORP.
Event
Year
The second TPE site at Kaohsiung Siaogang Site began production
2001
Kaohsiung Linyuan Site obtained ISO 14001
Reinvestment Zhenjiang LCY General Chemical Co., Ltd. began production of Methanol
2002
downstream series and completed the first phase investment plan for chemical storage
2003
Acquired Polimeri Europa S.P.A's TPE Site in Baytown , Texas , U.S.A.
2005
Named the best 200 Enterprises in Asia for turnover under US$1 billion by Forbes Magazine
Established Huizhou LCY Rubber Corp.
Named to the Top 50 among 1,000 Enterprises in Taiwan in 2005 as one of the best corporation
2006
worth investing by CommonWealth Magazine
Acquired 42.33% equity in Taiwan Polypropylene and became its largest shareholder
Named the Top 50 among 1,000 Enterprises in Taiwan in 2006 as one of the best corporation worth
investing in by CommonWealth Magazine
2007
Merged into REMARKABLE TRADING LIMITED for reorganization and held 36.02% equity in
Taiwan Polypropylene.
Established Taiwan Polysilicon Corp. and started investing in solar energy
Started investing in Huizhou LCY Rubber Corp. TPE site with production over 100,000 tonnes per
year began production
2008
Merged with Taiwan Polypropylene, in which LCY CHEMICAL CORP. was the surviving
company while Taiwan Polypropylene ceased to exist.
Huizhou LCY Rubber Corp. completed expansion on the second production line for TPE with over
2009
2010
2011
100,000 tonnes of production per year
TPSi Corp. started producing polysilicon
Declared to have signed a cooperation letter of intent with New Zealand's clean energy technology
leader LanzaTech, fully committing to the development of biomass energy and chemicals
Completed trials of independent research and developed hydrogenated thermoplastic elastomer
2011
(SEBS) products at hydrogenated thermoplastic elastomer (SEBS) at Kaohsiung Siaogang Site
with designed annual capacity of 45,000 tonnes.
7
Products and Services
Our products can be divided into four groups Polypropylene (PP), Solvent and Thermoplastic Elastomers (TPE), and
Methanol.
Polypropylene is a thermoplastic resin available in a wide range of formulations and
can be used for various purposes by changing the formulations or adding additives.
The wide range of physical properties and relative ease of processing make
polypropylene an extremely attractive material capable of competing with more
expensive resins in a number of demanding applications.
PP Products of LCY CHEMICAL CORP.
Homo-PP (Homopolymer):
It consists solely of propylene sequences in the polymer chain.
Heterophasic (impact) copolymers:
It is a product of a semi-crystalline matrix (homopolymer) with ethylene propylene
(EPDM) dispersed within it, thus ameliorating its impact performances.
Random copolymers:
It is a product with ethylene molecules added to the polymer chain at random
locations. Random copolymers exhibit better optical properties and impact resistance,
lower stiffness and melting point than homopolymer.
Polypropylene (PP)
High heat resistance and high stiffness:
With various filler types for different content, it offers a wide range of products,
serving applications like A/C housings, dish dryers, fan casings, battery cases...etc.
Flame-retardant:
This product exhibits flammability of UL94 V2 or V0. With different combinations of
stiffness, impact, and flammability, it can be adopted for many applications such as
the motor casing of air blowers, appliances, auto chargers...etc.
Impact modified product:
It offers different levels of impact strength. It is widely used in ATVs, power tools,
skates, and many other sports and leisure applications.
Glass-fiber reinforced compound:
It features high stiffness and appropriate impact strength. It is widely used for
motorcycles, baby strollers, and other structural parts.
Thermal forming:
Disposable thermal bonded nonwovens for diaper and sanitary coverstock, medical
and surgical uses, wipes, and filters.
Needle punching:
Nonwoven floor and wall coverings, tufted carpets
8
Solvent related products
(including propylene series and
ethylene series)
It is our goal to reduce production cost and increase capacity of utilization to gain
better competitiveness in the market. We aim to integrate the production line by
developing downstream products and application, for example the manufacturing
process of using acetone to produce MIBK. We have also established production
bases in Zhenjiang with a production capacity of 50,000 tonnes per year to become
the largest producer in the Asia. LCY CHEMICAL CORP. also works closely with
strategic partners in this field to optimize capacity. We hold the key to sources of
raw material and established the Ethanol AA process to reduce the cost of
production of ethyl acetate (EAC), gaining LCY CHEMICAL CORP. its place in the
competitive market. We are also flexible in modes of transport including barrels,
Isotank or bulk. With Taiwan located close to Southeast Asia and Mainland China,
the transportation risks can be well managed by shortening the delivery time. The
isopropyl alcohol and ethyl acetate produced by LCY CHEMICAL CORP. have
gained a reputation for high quality and are favored by Japanese and Indian
pharmaceutical companies.
Thermoplastic Elastomers (TPE)
Thermoplastic elastomers (TPE) is mainly used in shoe soles, asphalt modifiers, roof
leakage sealant, industrial supplies, electronic components, toys, medical equipment,
and appliances. During the manufacturing process, after styrene/ butadiene/ catalyst/
coupling agent/cyclohexane have gone through the reactor and flash, expansion oil is
added and SBS/ SIS is produced after dehydration. SBS/SIS is a special rubber
containing the advantages of both plastic and rubber, allowing the manufacturing
process to be simplified and downstream manufacturing cost to be reduced by
injection molding. It can be used in shoe soles, asphalt modifiers, roof leakage
sealants, industrial supplies, electronic components, toys, etc. With its special
flowing characteristics, SBS/SIS is also used for adhesion including hot melt
adhesive and hot melt pressure sensitive adhesive. The newly-developed SEBS
contains plasticity and high elasticity. Furthermore, it can be manufactured without
vulcanization. Its scraps can be re-used, allowing SEBS to be applied in producing a
top-grade elastomer, such as in automobile parts, plastics modification, adhesives,
lubricants tackifiers, filler wire and cable, sheath materials, etc. In 2010, the global
market share of TPE produced in Taiwan was 15%, making the Island the NO.3
producer of synthetic rubber and LCY CHEMICAL CORP. the largest manufacturer.
Due to the global trend of conservation, the recyclable characteristic of TPE has
drawn attention from all over the world. Besides reducing the production cost by
improving our manufacturing process, it is also our goal to enhance our level of
technology to strengthen our competitiveness as the leading manufacturer, and put
effort into developing unique products with higher added-value.
Methanol is widely used in the productions of pesticides, dyes, paints, synthetic
fibers, etc. It can also be used in solvents, as well as industrial and domestic fuel.
Methanol related products
In recent years, methanol has developed applications in advanced coatings, resins
and other products of high added value. A portion of our Methanol series products
are sold directly, while another portion are manufactured before being sold to local
or foreign downstream industries. LCY CHEMICAL CORP. is the leading
manufacturer of Methanol related products as we are the mid-level supplier within
the chain of the petrochemical industry.
9
We are committed to maintaining safety in all manufacturing, storage and transportation processes by meeting or
exceeding legal standards. With strict scientific methods of management, it is our first priority to secure a safe working
environment where our advanced production technology provides a best quality guarantee, enabling our products and
services to win the trust of out clients.
Quality Policy
QUALITY ASSURANCE
SAFETY FIRST
CUSTOMER CONFIDENCE
Proportion of Product Sales
Polypropylene related products
2009
TPE products
2010
2011
Trading products and others
5.89%
2.92%
1.30%
7.64%
7.53%
7.49%
12.87%
16.47%
19.56%
51.48%
55.82%
18.77%
15.54%
10
18.27%
58.45%
Sales Region and Market Share
Main Product
Main Domains
Market
Share
Sales Region
Taiwan, Southeast Asia,
Mainland China
Mainland China
Taiwan, Southeast Asia, India,
Pakistan, Europe, USA,
Japan, South Korea, Mainland
China
Mainland China
Mainland China, Japan, USA,
Europe
Formaldehyde
Plywood and urea plastic industry, textile resins,
melamine resin industry
Paraformaldehyde
Amino resins industry, textile and resin industry
Iso-propyl alcohol
Nitrocellulose, synthetic resin, electronics
cleaning, pesticide industry
Acetone
Acrylic resin raw material industry, acetylene
absorbent CCL Industry
MIBK
Ink, paint industry, antioxidants manufacturing
Acetaldehyde
Downstream of petrochemical industry
Tape, paint and coatings industry, the synthetic
leather industry
Taiwan
Mainland China, Japan
Pentaerythritol
Paint, industrial tetranitrate, absorbent, industrial,
fire protection materials, PVC stabilizers
All over the world, Taiwan
70.0%
Sodium acetate
Leather auxiliaries
Mainland China
70.0%
Thermoplastic
Elastomers
(TPE)
Soles, asphalt modifier, leak-proof roof, industrial
supplies, electronic components, toys, medical
devices, appliances
Food containers, pipes, packaging materials,
medical equipment, household goods, ribbon,
fabric, carpet, appliances, vehicle parts, baby
stroller parts
All over the world, Taiwan
50.0%
Mainland China, Middle-East
30.0%
Ethyl acetate
Polypropylene (PP)
Liquefied petroleum
gas
Gas stations, domestic fuel, industrial fuel
28.0%
51.0%
60.0%
4.5%
97.0%
100.0%
53.0%
6.5%
Taiwan
Sales Proportion of All Products
Main product
2009
2010
2011
Polypropylene related products
51.48%
55.82%
58.45%
15.54%
18.77%
18.27%
TPE products
19.56%
16.47%
12.87%
7.53%
7.64%
7.49%
Trading products and others
5.89%
1.30%
2.92%
100.00%
100.00%
100.00%
Total
11
Operational Bases
Qatar Menthol, MTBE
Baytown, US TPE
Tokyo, Japan Branch Office
Shanghai, China Branch Office
Siaogang, Koahsiung TPE
Taipei Head Office
Pingtung Barrel
Kaohsiung Terminal Station, Storage &
Transfer Station
Hong Kong, China Branch Office
Pingtung Polysilicon
Linyuan, Koahsiung Electronic
Chemicals
Zhenjiang, China
Formaldehyde, Paraformaldehyde, MIBK
Ta-she, Koahisung Polypropylene
Zhenjiang, China Harbor Storage &
Tranfer Station
Kaohsiung Menthol and derivatives
Huizhou, China TPE
Kaohsiung Copper foil
Head Office and Branch Offices
Linyuan, Koahsiung Solvent
Manufaturing Site and Harbor
Storage & Tranfer Station
Nanzhi, Koahsiung R&D Center
R & D Center
Operational Bases in Taiwan
Kaohsiung Site is located in the Kaohsiung Linhai Industrial Zone and produces formaldehyde, poly formaldehyde,
hexamine, all types of synthetic resin, pentaerythritol, and sodium acetate.
Ta-she Site is in Kaohsiung Ta-she Industrial Park and produces polypropylene, polypropylene composites, and
polypropylene fiber.
Linyuan Site was founded in 1979 and is located in Kaohsiung Linyuan petrochemical industrial zone with 9.4
hectares of total site area. Its main functions are to 1. Produce chemicals for industrial use including Isopropyl
alcohol, acetone, methyl isobutyl ketone, acetaldehyde, and ethyl acetate. 2. Produce Isopropyl alcohol and acetone
for electronic use. 3. LPG repackaging.
Siaogang Site is located in Koahsiung Siaogang District, producing thermoplastic elastomers (TPE).
2
Kaohsiung Terminal Station. Established in 1979, is located in Cianjhen District with total area of 28,262M . Its main
functions are to 1. Provide a port for the import and export of chemical raw materials and products. 2. Execute rental
operations for the warehouses and tanks. Kaohsiung Terminal Station has 57 stainless steel and carbon steel tanks
including special tanks offering bonded storage, insulation, nitrogen seal, condensation, and watering features. There
are also bulk and bottled equipment available for oil filling truck and drum shipping. The station is located near Pier
No. 57 and 58 of Kaohsiung Harbor, where chemical ships over 10,000 tonnes can dock. Special pipelines are
implemented in the piers, making it convenient for the import or export of all types of specialized chemical materials
or products.
12
Organization Chart
Board of Shareholders
Supervisors
Secretariat
Board of Directors
Remuneration
Committee
Chairperson
Auditing
General Manager
General Manager’s
Office
Management &
Planning Dept
Energy Dept.
Methanol &
Solvents Dept.
Polypropylene Dept.
Rubber Dept.
Warehouse Dept.
Procurement Dept.
R&D Dept.
Environmental Risk
Management Dept.
Human Resource Dept.
Treasury
Department
Duties
Secretariat
Responsible for organizing meetings of the Board of Directors, as well as administration
work related to the meetings.
Remuneration Committee
Regularly review the annual and long-term performance goals of the directors, supervisors,
and managers. Review wage remuneration policies, systems, standards, and structures.
Auditing
In charge of internal auditing of all business departments in the corporation.
Management & Planning Plan and review domestic and international business development and investment
Dept.
plans
Treasury
Responsible for accounting, tax, capital allocation, cashier operations, information systems
management, and maintenance operations
Human Resources Dept.
Responsible for building a human resources management system and a system for overall
manpower planning and development. In charge of establishing and maintaining staff
training and communication systems. Responsible for payroll, employee benefits and
welfare, retirement, severance payment, etc.
Environmental Risk
Management Dept.
Establish the risk management policy of the corporation to minimize risks and maximize
interests. Ensure safety of the working environment for the best interest of the employer.
R&D Dept.
Provide long-term technology development strategy and planning; research and development
of new products, new processes, and process improvement of existing products.
Procurement & Logistics
In charge of procurement and logistics.
Dept.
Methanol, Solvents,
Product market analysis survey, business goals implementation, customer relationship
Rubber, Polypropylene,
maintenance and development of new markets, customer credit investigation, product sales,
Energy and Warehousing
overdue accounts management, and petrochemical storage tank rental business
Dept.
13
Affiliates
Taiwan 1704
1704
LCY CHEMICAL CORP.
USA
TAIWAN 100%
17040010
LCY ELASTOMER
MANAGEMENT LLC
USA 1%
17040023
LCY LANZA
TECH CO., LTD
(2008/09)
TAIWAN 100%
17040022
HUEILI INVESTMENT
CO., LTD
(2008/04)
TAIWAN 63.78%
17040020
TAIWAN
POLYSILICON
CORP(2007/09)
BVI 100%
17040002
LCY INVESTMEN
CORP
99%
TAIWAN 62.63%
17040004
LCY WAREHOUSING
& STORAGE CORP
17040001
LCY CHEMICAL
CORP.
China 100%
17040009
LCY ELASTOMERS LP
BVI 100%
17040011
LCY ELSATOMERS
CORP
(2005/09)
China 100%
17040012
HUEIZHOU LCY
RUBBER CO., LTD
(2006/01)
BVI 100%
17040013
LCY MIDDLE EAST
CORP
(2006/02)
BVI 100%
17040018
LCY POLYMERS
CORP
(2007/05)
42.13% BVI
17040003
LEE CHANG YUNG
INVESTMENT
INCORPORATED
Hong Kong 100%
17040021
LEE CHANG YUNG
DEPARTMENT
China 100%
17040005
ZHENJIANG LCY
PETROCHEMICAL
CO., LTD
14
BVI 100%
17040006
ZHENJUANG
PETROCHEMICAL
STORAGE CO., LTD
Subsidiary
BVI 100%
17040007
LCYT
HOLDINGS CORP
China 100%
17040008
LCY ELECTRONICS
CO., LTD
Sub-subsidiary
Financial Performance at a Glance
The LCY CHEMICAL CORP. management and financial policies aim to increase its long-term investment value for
investors.
Our revenue in 2011 amounted to NTD 30,281,810,000 as compared to NTD 28,649,137,000 in 2010. Our net income in
2011 was NTD 2,484,799,000, which was less than the NTD 3,147,211,000 of the previous year; our earnings per share
in 2011 was NTD 3.37.
In recent years, we have devoted our rich experience in chemical technology, engineering capability, and large-scale
manufacturing to the new energy industry in the hope of creating long-term investment value for our shareholders in a
win-win situation of sustainable development. These investments inevitably caused relative changes in our profit profile
as return on equity dropped to 12.38% in 2011. However, it is our hope that return on equity will maintain double-digit
performance in the long term to maintain a considerable level of dividend and dividend rate.
Dividend Distribution Amount
Unit: NTD
2009
Earnings per share
Cash dividends
Return on equity
2010
4.27
3.00
18.80%
2011
4.52
3.35
18.47%
Operating Performance
Operating income
Operating costs and expenses
Operating profit
Non-operating income
Non-operating expenses and
losses
Income before tax
Income tax expense
Net income
Payroll
Number of employees (persons)
Community investment
3.37
2.60
12.38%
Unit: NTD 1,000
2009
25,181,640
22,869,628
2,312,012
1,533,792
2010
28,649,137
26,762,867
1,886,270
1,752,957
2011
30,281,810
29,166,541
1,115,269
2,246,757
313,111
77,849
135,047
3,532,693
587,639
2,945,054
969,498
695
17,698
3,561,378
414,167
3,147,211
1,098,942
758
5,612
3,226,979
742,180
2,484,799
1,185,044
814
9,599
15
Participation of External Organizations
LCY CHEMICAL CORP. collaborates with influential non-governmental organizations, industrial associations and
organizations and maintains good partnerships with them to promote R&D as well as information sharing within the
industry. It is our hope to elevate the industry so the competitiveness and sustainable development of the chemical
industry as a whole can be secured and enhanced.
Name of Organizations
Taiwan Responsible Care
Association (TRCA)
Chemical Awareness and
Emergency Response
Association, Taiwan
(CAER)
Taiwan Association of
Petrochemical Industry
Taiwan Chemical
Technology Industry
Association
Held Positions
Founding member
Third, Fourth and Six Chair
of the Council
Second to sixth Chairman of
the Executive Committee
Founding member
First and Second Chair of the
Council
Executive Director
Sustainable Development
Panel Convener
Chief of Responsibility and
Care Committee
Member of Council
Major Actions or Promoted Policies
Led Taiwan chemical industry to promote flagship
program of international chemical industry in 1997,
joined International Council of Chemical
Associations (ICCA) as member of Responsible Care
Leadership Group (RCLG)
Formed national toxic chemical substance
transport defense organization, covering 70% of
Taiwan's toxic chemical substances.
Held emergency personnel training under the
auspice of the organization and provided quota
for free training to encourage participation
Coordinated the construction of disaster and
ignition training ground with authorities.
Encouraged members to join the Committee.
Promoted the flagship program for international
chemical industry
Encouraged members to join the Committee.
Promoted the flagship program for international
chemical industry
Other ogranization members includes:Association of Bio-based Material Industry (R&D Dept)、R&D Center for
Membrane Technology,CYCU (R&D Dept) 、Taiwan Flat Panel Display Materials & Devices Association
(Management & Planning Dept)、Grand-China IMA(Wu Ren-zhi)、Sino-Arabian Cultural & Economic Association
(General Manager's Office)、Taipei City Young CEO's Organization (General Manager's Office)、Global Growth
Companies (General Manager's Office)、Mont Jade Science & Technology Association of Taiwan (General Manager's
Office)、IMPCA (General Manager's Office)、Association of Industry for Environmental Protection R.O.C. (General
Manager's Office)、R.O.C.-U.S.A. Business Council (General Manager's Office)、Chinese International Economic
Cooperation Association. (General Manager's Office)、The Third Wednesday Club (General Manager's Office)、
Industrial Safety and Health Association (ISHA) of the R.O.C. (Taiwan) (Ta-she Site Construction Safety Dept)、
Kaohsiung County Industrail Association (All Sites) 、Taiwan Synthetic Resins Manufacturers Association
(Polypropylene Dept)、Taiwan Resource Recycling Industries Association (Methanol Solvent Dept)、Republic of
China Publicly Issued Company Association (General Accounting Dept)、Taiwan Institute of Chemical Engineers
(General Manager's Office) 、Chinese Petroleum Society (General Manager's Office) 、The Kaohsiung LinHai
Industrail Park Association for Advancement (P/K Sites)、Kaohsiung Commerce & Trade Development Association
(W Site) 、Kaohsiung Chamber of Industry (P/K Site ；LCY CHEMICAL CORP.)、Taiwan Accreditation
Foundation(LPG Dept)
2011 External Organization Participation Total Investment
16
NTD2,748,920
As a founding member of Taiwan Responsible Care Association (TRCA) and having served as its chairman and member
of its Executive Committee, we have led and promoted many important actions and policies for TRCA in the past 15 years
as follows:
In 1997, led Taiwan chemical industry to promote flagship program of international chemical industry, joined
International Council of Chemical Associations (ICCA) as member of Responsible Care Leadership Group (RCLG).
In 2004, represented TRCA in signing safety and health partnership with the Council of Labor Affairs to enhance
health and safety performance.
In 2005, formed Chemical Awareness and Emergency Response Association, Taiwan for emergency measures when
accidents occur during inland transportation of toxic chemicals.
In 2006, represented the chemical industry in Taiwan in signing the Global Charter of ICCA.
In 2010, became an observer of ICCA.
In 2011, promoted Global Product Strategy with ICCA Capacity Building Task Force in order to meet the goals of
Strategic Approach to International Chemicals Management, (SAICM) under the UN.
In 2012, in order to enhance the image of the petrochemical industry, collaborated with TamKang University on
“Countryside Project” by bringing chemical lab experiment to children in rural areas to enhance their knowledge.
Moreover, we are keen on organizing and promoting a network of prevention for transporting toxic chemicals across the
country. This network covers 70% of Taiwan’s toxic chemicals. We help train personnel under the organization and
provide a quota for free training to encourage participation. We also coordinate the construction of a disaster and fire
safety training site with the authorities.
17
Awards in 2011
Site
18
Project Name
1
All sites
Healthy low-carbon LOHAS contest
2
Ta-she Site
Kaohsiung enterprise energy performance assessment
activities
3
Ta-she Site
Zero Accidents Award from Council of Labor Affairs
4
Ta-she Site
5
Ta-she Site
6
Siaogang Site
7
Siaogang Site
Ta-she Industrial Park safety and environmental
monitoring
2011 healthy workplace self-certification
activities
8
Siaogang Site
9
Siaogang Site
10
Kaohsiung Site
Performance recognition of occupational safety and
health management system and institutions
activities
Ministry of Economic Affairs Bureau of Energy,
energy-saving merit selection
11
Kaohsiung Site
12
Kaohsiung Site
13
Copper Foil Site
14
Copper Foil Site
15
Linyuan Site
16
Linyuan Site
17
Linyuan Site
18
Kaohsiung Terminal
Station
Kaohsiung citizens and enterprise power-saving
water-saving contest
activities
19
Kaohsiung Terminal
Station
Carbon reduction actions logo
20
Kaohsiung Terminal
Station
21
Kaohsiung Terminal
Station
Merit for fire management
22
Kaohsiung Site
2011 Enterprise industrial safety investment merit
award
Ministry of Economic Affairs Industrial Development
Bureau, merit of voluntary reduction of greenhouse
effect
Award
LOHAS Award from the
Premier
Energy Saving Award
Record of 400,000 working
hours with zero accidents
Certificate of Merit
Energy Saving Award
Energy Saving Award
Excellence Innovation
Award for energy-saving
elite
Awarded with Merit for
tobacco and harmful
substances control
Second place for enterprise
water saving
Certificate of Merit for
Enterprise in South region
Awarded with Merit for
tobacco and harmful
substances control
Corporate Award
LCY CSR Concept
LCY Chemical is committed to use resources more efficiently, to
deliver value for our customers and stakeholders, to provide
solutions to customers’ needs and to enhance the life quality of
human beings through research and development of green
chemical products and investment in renewable energy
technologies to inject new energy to sustainable development.
19
LCY CSR
Concept
Governance Integrity
LCY CHEMICAL CORP. understands the importance of operational transparency and corporate governance. Thus, the
organization structure of the corporation is set and executed according to the Company Act, Securities and Exchange
Act, and other relevant laws and regulations. Under this structure, we continue to enhance our management
performance, secure the rights of investors and other stakeholders.
Board of Directors
The Board of Directors is responsible for the supervision, appointment, and guidance of management; it is also
responsible for the overall corporate operation. Furthermore, the Board of Directors ensures a well-rounded supervision
and strengthens managerial capacity in an effort to maximize shareholder equity.
We have 7 seats on the Board of Directors, each voted on by shareholders. Among the Member of the Board, 6 are
representatives of corporate directors from Fuju Corporation, of which, one is female. In addition, there are two
supervisors on the board. Mr. Bowei Lee, the chairperson of the Board of Directors, is also the CEO of LCY
CHEMICAL CORP. In 2011, there were 12 Board of Director meetings held.
Remunerations to board members are paid according to Article 27 of the LCY Charter, where board members and
supervisors are awarded 1.5% of the annual pre-tax net income, signifying that remuneration benefits of the Board are
in positive correlation with annual surplus. According to Article 30 of the LCY Charter, remuneration to directors and
supervisors shall not exceed 0.5% of the surplus, so that most of the earnings can be distributed to shareholders.
The Structure of Board of Directors
Shareholders’ Meeting
Board of Directors
Management Team
Secretariat
Internal Auditing
LCY CHEMICAL CORP. Board of Directors
Title
Chairman of the Board
Director
Director
Director
Director
Director
Director
Supervisor
Supervisor
Name
Bowei Lee
Representative from Fuju: Li Kun-Chih
Representative from Fuju: Yang Sai-Fen
Representative from Fuju: Li Ming-Kung
Representative from Fuju: Wu Hsien-Chin
Representative from Fuju: Wei Cheng-Cheng
Representative from Fuju: Shih Tsung-Hsien
Representative from Lee Cheng Enterprise Co., Ltd: Chuang Hsun-Chia
Representative from Lee Cheng Enterprise Co., Ltd: Wang Kun-Tsan
Remarks: The LCY Board of Directors’ background information, educational backgrounds, positions in other companies, and attendance of
Board meetings are released in our annual report. Please go to http://www.lcygroup.com for the annual report.
20
LCY CSR
Concept
To enhance the governance of LCY CHEMICAL CORP. and to keep in line with international standards, we established
the remuneration committee in 2011. The committee regularly reviews annual and long-term performance goals and the
remuneration policy, system, standards, and structure of the Directors, Supervisors, and Management Team. The
reviews serve as an important basis to attract, encourage, and maintain talented employees, in hopes of maximizing
benefits for our shareholders.
The main responsibilities of the remuneration committee are:
1. Establish and regularly review Director, Supervisor, and Management Team performance evaluation and
remuneration policy, system, standards, and structure.
2. Regularly evaluate and formulate salary compensation of Directors, Supervisors, and Management Team, and
submit recommendations to the Board of Directors for discussion. The management team under supervision is
based on the applicable range of managers according to the Securities and Exchange Act benchmark. 3 members
are appointed to the remuneration committee. To ensure the independence of the remuneration committee, member
tenures are based on Article 6 of the Salary Remuneration Committees and the Exercise of Powers Regulation for
Companies Listed in Stock Market or Office of the Business of Securities Dealers.
Financial Information Disclosure and Investor Communication
The financial information of LCY CHEMICAL CORP. is published on the company website (http://www.lcygroup.com)
to provide complete, up-to-date, and fair disclosure of financial information and corporate governance to the public.
Stakeholders can download the shareholder’s annual reports, financial reports, all financial information, company
governance charters, and information regarding stock prices and dividends. All information regarding our operation
status and financial figures are complete, up-to-date, and transparent.
Shareholders can also contact us by telephone or email. In addition to answering questions in detail, we also respond to
all suggestions made at the shareholder’s meetings. Besides providing the announcements for Taiwan Stock Exchange
on time, LCY CHEMICAL CORP. was accredited Class A in information disclosure by the Securities & Futures
Institute in 2010.
Other than financial information, in recent years, strategies for corporate sustainable development and corporate
management potential risks and opportunities have become the focus of major investing parties around the world. LCY
CHEMICAL CORP. has always been cognizant of communicating with our investors; therefore we used the Dow Jones
Sustainability Index to evaluate LCY CHEMICAL CORP. While identifying our shortcomings, we poured efforts into
improving these shortcomings and sought sustainable development to safeguard the value of our shareholders'
long-term investment.
We provide convenient channels of communication for our shareholders and stakeholders. We have also established the
spokesperson system and created a web forum for investors to provide feedbacks, so that communication and advice
could be offered. The mechanisms for shareholders or employees to give advice or strategic planning are (1)
shareholders can give their proposals through the shareholder’s meetings or through the company website or
spokesperson; and (2) employees can propose their ideas.
21
LCY CSR
Concept
Corporate Code of Conduct
“Integrity” is the core value of LCY and all employee behaviors must meet the standards of this ethical principle.
In order to emphasize our strict anti-corruption regulations and requirements, we have developed an “Employee
Conflict of Interest Regulation”. This Regulation is to be followed by all employees irrespective of position. Employees
who violate the regulation will be penalized accordingly. Serious misconducts may result in dismissal.
We believe that the trust and respect of the public is earned through honesty in management and operation. Therefore,
we have also developed a “Business Code of Conduct” that requires all employee activities to meet the highest
standards. All employees are required to follow the code, view the code as a duty, and perform their job on behalf of the
corporation accordingly.
Risk Management
Responsible actions in strengthening corporate operation are to identify risks and implement risk management policies,
in an effort to attain sustainable development by reducing possible risks.
Risk Management Organization
Board of Directors (including Auditing)
High-level management (CEO)
All management offices of the Head Office
(Environmental Management and Risk
Department)
Related Affiliates
22
Duties and Responsibilities
1.
2.
Establish risk management policy, structure and, culture.
Ensure the effectiveness of risk management and allocate
resources.
1.
Execute risk management strategies set by the Board of
Directors.
Coordinate inter-departmental risk management efforts and
communication.
2.
1.
2.
3.
4.
1.
2.
Compile results of risk management activities.
Assist and supervise risk management activities of affiliates.
Change risk categories depending on changes in the
environment and recommend risk taking methods.
Conduct performance evaluation and coordination following
risk adjustment.
Execute risk management activities.
Conduct self-evaluation of risk management activities.
LCY CSR
Concept
Our risk management structure is divided into aspects of finance, auditing, legal, information, and investment with the
following strategies of execution level:
Financial Risks
1. Safe management of funds
Funds play an important role in the operation of a company. All operation schemes are related to funds. Ample
liquidity or shortages may influence the operation of huge stakes, signifying the importance of efficient
management of funds. The management of funds includes the monitoring and review of the following to achieve
optimal benefit and safety control.
(1) Daily review of current funds and demands for funds for further capital allocation to avoid shortages of
working capital which may lead to operational crisis.
(2) Monthly prediction of accounts receivable and accounts payable for better capital allocation.
(3) Strengthen payment security by using SAP system direct transfer through electronic banking operations where
all levels of authorization are needed to access payment.
(4) Plan appropriate bank line of credit to increase the depth and width of capital allocation, securing the safety of
capital allocation.
(5) Establish internal control mechanisms with regular cash inventories and reconciliation of bank deposits. Audit
payment authorization level to enhance the security of fund management.
2. Foreign exchange risk management
(1) Review foreign funds and demands for foreign funds for foreign exchange management and control.
(2) Gather foreign exchange information as risk control basis to lower the risk of foreign exchange.
(3) Establish management system to consolidate all fund bodies, accounts receivable and accounts payable related
to foreign exchange to avoid risk of foreign exchange.
(4) In order to avoid risks due to foreign exchange rate differences, estimate the amount of foreign currency and
payment terms to offset foreign currency assets and foreign currency liabilities, achieving close-to-zero for all
foreign currency bodies.
3. Property and assets management
Asset management specialists and professional insurance brokers should work together to plan insurance of
property and assets before choosing a suitable insurance company.
(1) Professional insurance brokers are to conduct site visits and produce “survey reports” which evaluate the
operational risks of the sites and provide points of improvement for occupational safety. This report also serves
as a reference when evaluating a suitable insurance company.
(2) Plan for staff to participate in occupational safety and environmental protection workshops and courses held by
authorities.
(3) Review the expiration date of insured items to avoid gaps in insurance coverage.
23
LCY CSR
Concept
Management Risks
1. Auditing
Perform annual auditing according to self-assessed risk evaluation of the internal control system. Review the
effectiveness of internal control system and execution, while assist the Board of Directors and the management
level to understand the control operations for corporate risk management. Includes functions below:
Avoid conflict of interests
Assist the Board of Directors and all departmental heads in understanding the effectiveness of the internal
control system, including the design and execution of internal control.
2. Legal counseling
In charge of legal risk evaluation and legal advice, which include contract audit procedures to assess the risks of
contracts; based on internal system, proposals and execution regulations, provide legal advice and
recommendations for litigation, mergers and acquisitions, intellectual property rights applications and management,
and other matters. Share legal knowledge and information based on external seminars and news related to legal
affairs. Write drafts and amendments to official corporate letters in order to lower the risk of legal affairs.
3. Information safety
The information safety team works with the professional risk counseling team to plan and review information risk
management covering the possible impact or all possible risks of IT operations, including natural disasters or
government policy changes, internal procedure that may impact the product or service quality, IT organization and
efficiency of the information center, improper authorization, intellectual property loss, supervision or legal control,
etc. Reviewing and monitoring at all times is required to achieve optimal performance and safety.
(1) Safety risks: risks of malicious attacks from unauthorized persons to access, manipulate, or use information.
(2) Availability risk: risks of limited access to information, application or system process failure due to human
error, mechanical breakdown, or natural disasters.
(3) Effectiveness risk: risks of reduced business productivity or value due to systems, applications, personnel, or
organizational ineffectiveness.
(4) Legal compliance risk: risks of information processing not meeting the requirements of regulations, IT or
business policies.
4. Investment risk
(1) Asset allocation, management, and control according to the evaluation and review of asset distribution and
funding needs.
(2) Utilize macro- and micro- economic information for investment or asset allocation, to lower the risks of
investment.
(3) Calculate achieving time, payback, and acceptable risks based on investment goals, and screen for optimal
assets.
(4) Establish a dynamic analysis adjustment system and regularly review assets in the investment portfolio.
Analyze and decide according to future overall economies and financial market trends if adjustment of the
portfolio is to be made.
24
LCY CSR
Concept
Risks at Sites
LCY plays an important role in the petrochemical industry. all our production facilities operate under high temperature
and pressure, and even minor negligence may lead to accidents involving leakage of combustible; furthermore, many
manufacturing process require 24-hour non-stop operation. Therefore, internal risks at sites should not be
underestimated. If a fire led to explosions, it will be difficult to extinguish such fire by aiming the fire extinguisher
directly at the dangerous petrochemical substances. If such incident occurs, nearby residents might file complaints
against the corporation or even organize protests, making such events even more difficult to resolve.
Furthermore, deriving problems may arise if harmful chemical substances are leaked. Such hazards may threaten the
lives and properties of nearby factories and residents directly. Therefore, LCY has put great effort into the fire control
system at each site and established a holistic fire management plan. In the case of fire, the plan can minimize damage,
thus reducing any impact on corporate reputation.
Furthermore, we established an “Environmental Risk Management Department” registered under the Taipei City
Government Labor Inspection Department of Labor Bureau. The Environmental Risk Management Department is in
charge of the Occupational Safety Department and Damage Department, each responsible for environmental risk management and relevant technical engineering. They are in charge of overseeing the occupational safety and
health offices at each site, which are responsible for the planning, supervision, and promotion of employee safety and
health.
In addition to enhancing fire control equipments at all sites to surpass the requirements set by government regulations,
all sites are required to conduct emergency drills of single or complex scenarios. This is to strengthen the management
system for basic safety of all manufacturing processes and facilities, and enhance high risk operation control and
management over contract suppliers. The organization chart of the Environmental Risk Management Department is
shown below.
25
LCY CSR
Concept
Environmental Risk
Management
Department
Vice President, Director
(Associate) Manager
(Associate) Manager
Occupational
Safety and
Health
Department
Loss Control
Department
Supervisor
Engineer
Associate Engineer
Supervisor
Engineer
Associate Engineer
Occupational
Safety and
Health Office of
all Sites
Supervisor
Engineer
Associate Engineer
Assistant Engineer
Technician (Level 3-6)
A
nding　cceptanc
a
t
s
e　r
de
Ap
n
U
ommunication
p
C
Hazard
identification
Risk
assessment
Engineering
improvement
Occupational
health
Environmental
protection
e
m
en
Security
te
ag
na
nce
Risk
management
M an
Asset
management
Industrial
safety
k contro
Ris
l
Loss
control
n
tio
cia
re
Re
sp
ec
t
Environmental Risk Management Structure
t sys m m
te
n
ai
Insurance
Health care
Emergency response plan
us
to
Business continuity planning
me
na
r r el
ationship ma
Pe
rfor
m
26
en
t
C
g
l
ance appraisa
em
LCY CSR
Concept
Research and Development
To secure stable long-term growth, LCY CHEMICAL CORP. has set short- and long- term research and development
strategies to achieve technology innovation and product diversity by recruiting talented people with expertise and
increasing investment in research and development. Hopefully, the added-value of our products and services can be
boosted to create market opportunities while increasing industry and human resource competitiveness.
Short-term Research and Development
1. Enhance the reliability of facilities by implementing
advanced production technology. Continue
manufacturing process modifications to increase
performance and production efficiency in hopes of
reducing product cost.
2. Incorporate and satisfy the core demands of clients.
Implement internal and external customer service to
effectively expand the market and win sales
opportunities.
3. Provide complete product specifications and
technology services to expand further into the global
market of thermoplastic rubber.
4. Continue to develop relevant electronic chemical
products to increase the proportion of customized
services.
Long-term Research and Development
1. Planned training for employees; enhance internal
management; and simplify operations to increase
management efficiency.
2. Develop specialized chemical products to elevate
manufacturing level and added-value of products.
3. Promote main products to the world and strive to
become one of top three chemical engineering
corporations in Asia, and gain unrivaled reputation
in the chemical industry.
4. Develop advanced electronic chemical materials to
synchronize with the developmental trends of the
electronics industry. Create key materials of new
technology and high added-value.
The research and development tasks we are carrying forward currently include DCPD purification manufacturing
process development, SEBS manufacturing process modification and product development, continuous SEBS process
development, SEB / PP composites product development, special high-priced chemicals process introduction and
development, TPE production technology improvement and product development, PP production technology
improvement and product development, SBS, SIS development of new products, PARA production technology
improvement and development, Pentaerythritol production technology improvement and development. Our research and
development results are as follows,
1. SEBS process and product development:
Development of 2 specifications of SEBS9550／9551
Development of high hydrogenation process and catalyst removal process
2. Composite materials (aiming to develop the market for green material for wire and cable coating)
Development of formulation and manufacturing process for flame retardants and composites
(1) The Technology is owned by LCY CHEMICAL CORP. and can be adjusted according to customer
demands.
(2) The technology is designed for our own materials, providing advantages in exclusivity.
(3) Competitive in cost compared to products of the same-level in the market.
(4) Potential for patent application due to technology novelty
(5) Potential for massive production
(6) Market potential is huge for eco-friendly wire and cable coatings
27
LCY CSR
Concept
SEBS halogen-free flame retardant composites with two formulations verified by client’s combustion test
(UL1581VW-1). Excellent physical properties that pass the heat and aging duration test (136℃，168hr) for cables and
wires (The highest level at the temperature of 105 ℃). The formulation and manufacturing process is developed solely
by LCY CHEMICAL CORP. with over 50% own material usage, bringing forth competitiveness in the market and
potentials for massive production.
Investment in Research and Development
119
159
Unit: NTD 1 million
2011
202
25,182
28,649
30,282
0.47
0.55
0.67
2009
Value for investment in R&D
Total revenue
Ratio (%)
2010
CSR Management
We view discussion and management of CSR issues as the key in showing our commitment to corporate social
responsibilities, including following corporate ethics, complying with regulations and guidelines, risk management,
EHS, hazard prevention, employee health enhancement, and product responsibility. We seek an effective management
system that can drive stable growth in CSR issues.
To establish and execute a management system that can be applied to all level of employees, LCY CHEMICAL CORP.
set up a “CSR Management Committee”. Annual meetings for committee members are held to promote and fulfill our
corporate social responsibilities. During the meeting, CSR challenges faced by LCY CHEMICAL CORP. are reviewed
and discussed, to determine concepts worth promoting and focus on CSR efforts accordingly.
The chairperson of LCY CHEMICAL CORP. CSR Committee is our Chairman; other department heads act as
committee members. The Committee is in charge of setting the course, strategy, and action plan of CSR, and passing the
plan to each department for execution and feedback.
CSR Committee
28
Economy
Environment
Community
Operation risks
Financial risks
Purchase risks
Innovative R&D
Corporate
Prospects
Water resource
Waste
Toxic substances
Air pollutants
Environmental
footprint
Labor
Human right
Community
Product
responsibility
LCY CSR
Concept
Key CSR Issues
Because our business comes into contact with many different stakeholders, including clients, suppliers, employees,
investors and representatives from all fields, the media, and non-governmental organizations, LCY CHEMICAL CORP.
believes in actively communicating with these stakeholders, to understand and communicate each party’s needs,
demands, and issues.
During the publication of our first CSR Report, we identified LCY CHEMICAL CORP. CSR Issues of Concern through
the following steps. With experts in related fields and support from all departments, we drafted a list with issues of
concern from our stakeholders.
Step one: identifying issues
Gather and collate relevant issues through interaction with stakeholders and
discuss the responses from stakeholders during the operation process.
Step two: prioritizing concerns
Score each issue by “Effect on corporate management” and “Level of concern
to stakeholders”. “Effect on corporate management” refers to the extent of
effect on the management of LCY CHEMICAL CORP. and “Level of concern
to stakeholders” refers to the effect on corporate image and business scope.
Step three: analyzing results
The upper right corner of the Matrix for CSR Issues consists of priority issues
we should respond to and are designated as major topics in our annual report.
Step four: continued modification
Obtain better understanding of stakeholder satisfaction through information
disclosure, in order to develop, execute, and review various action plans for
improvement.
LCY CHEMICAL CORP. Matrix for Key CSR Issues
High
Influence to corporate
management
Integrity
Talent cultivation
and social
contribution
Green chemical
industry
Energy and climate
change
Toxic chemicals
management
Transparent disclosure
Supply chain
management
EHS
Community
meetings
Low
Low
Level of concern to parties of interest
High
29
LCY CSR
Concept
Communication with Stakeholders
It is our hope to understand the needs of LCY’s stakeholders. Therefore, we have established different channels of
communication for investors, clients, employees, and the community. The channels are explained as follows. In the
future, we will continue to strengthen these channels of communication to meet the demands of our stakeholders.
Channels of Communication for Stakeholders
Stakeholders
Investors
Clients
Suppliers
Frequency of
communication
Annual shareholder’s
meeting
Customer service
hotline
Standards for
procurement
Random auditing
Issues of concern
Our efforts
Corporate earnings
Risk management
Regular shareholder meetings are held on a
regular basis. A special forum for investors
to express their opinions and provide
feedback is setup on our official website for
better, quicker communication.
Customer satisfaction
Customer service maintains close contact
with clients and provides product
information updates and services of high
quality. Perform all system management to
meet the demands of our customers.
Quality control (ISO9001)
Environment management
(ISO14001)
Social responsibilities (SER)
Employee’s rights (SA8000)
Electronic Industry Code of
Conduct (EICC)
Green Product RoHS, WEEE,
EuP, REACH
Department in charge of purchasing, green
product proposals, supplier chain
management, and EHS maintain close
contact with suppliers. Characteristics of
materials and quality control are requested
to help establish all management systems
and suit the future demand of LCY
CHEMICAL CORP.
Employees
Regular meetings
Salary and compensations
Welfare
Working environment
Staff members are resources of the company.
It has been our goal to provide a comfortable
working environment for our employees. We
also provide all types of training resources to
enhance employee morale. Meetings are
conducted to encourage feedback from our
staff.
Communities
Community activities
Charitable work
Impact to environment
Social contribution
Environmental monitoring and evaluation
are ongoing to minimize the impact to the
environment of nearby communities.
Engage in community services.
Government
bureaus
Regular checks
Fire drills
Regular inspections
Equipment checkups
Safety inspection
Regulations with impact to
society
Impact to environment
Participate in inspections and audits
according to government regulations.
30
Energy and Climate Change
The chemical industry that LCY CHEMICAL CORP. locates in is right at the central position to
change the world. We have competent professionals and technical personnel dedicated to solve
global challenges towards sustainable development through innovation.
Our industry contribute to product innovation and reducing the energy dependence of material
and products. We strive to reduce the CO2 emissions of materials in the entire product life cycle,
and play a positive role in creating green future and moving towards green economy.
31
Energy and
Climate Change
GHG Emission Inventory Check
Climate change is currently the biggest challenge for achieving sustainable development around the world. As an
export-oriented newly industrialized country and non-State party to the Framework Convention of the United Nations
Climate Change, Taiwan is at a turning point in economic development. In order to maintain our competitiveness in the
global market, we have to act fast in developing carbon reduction policies and adapting plans to meet the challenges of
such impact. It is also important to strengthen international collaboration and encourage exchanges of carbon reduce
policies, technologies, and experience. By doing so, the carbon market can be aligned with global market trends,
ensuring sustainable development of the environment, economy, and society.
LCY CHEMICAL CORP. believes in holding a proactive attitude towards carbon reduction plans. The first step in
carbon reduction is to track the carbon footprint of our products. This understanding will allow us to estimate carbon
emission in the product life cycle, and achieve energy conservation through assisting the supplier chain. It is our hope
that our products can meet the target of carbon neutrality with no greenhouse gas emissions.
With this in mind, LCY CHEMICAL CORP. has been promoting the GHG Emission Inventory project since 2004, and
logs our greenhouse gas emission annually, as instructed by the Bureau of Industry. In 2009, Ta-she Site first
implemented the greenhouse gas inventory management system and obtained ISO14064-1 verification. By 2011, LCY
CHEMICAL CORP. has implemented this system to all sites and obtained ISO14064-1verification for greenhouse gas
emission. Step by step, LCY CHEMICAL CORP. has built a carbon gas emission list for the group in preparation for
eventual carbon trading. LCY CHEMICAL CORP. is moving towards the ultimate goal of carbon neutrality and
promotes the concept of green conservation and green industry to all of its sites.
Moreover, in order to show our commitment to promoting greenhouse gas reduction, in 2011, LCY CHEMICAL CORP.
signed the Industrial Greenhouse Gas Voluntary Reduction Agreement with the Ministry of Economic Affairs, along
with delegates from 11 other industries, including iron and steel, petrochemicals, cement, paper, rayon, cotton printing
and dyeing, silk printing and dyeing, composite materials, industries of certain sorts (including food, electronics and
plastic, etc.), semiconductor, and liquid crystal display (LCD).
In 2011, there were 10 award-winning corporations for voluntary greenhouse gas reduction including China Steel,
Formosa Chemicals & Fiber Synthetic Phenol Site CAPCO Taichung Site, LCY CHEMICAL CORP. Kaohsiung Site,
Asia Cement Hualien Site, Chung Hwa Pulp, Far Eastern Chemical Fiber Site the ASE K11 Site UMC Fab8D Site and
AUO Taichung Plant.
32
Energy and
Climate Change
Carbon Footprints in Our Products and Services
After the GHG emission inventory system had been implemented, in 2011, all LCY sites conducted inventories of
carbon emissions during the life cycle of products produced in 2010. This included carbon emission generated during
raw material acquisition, manufacturing process, and transportation. A product carbon footprint report was completed
and verified by British Standards Institution PAS 2050.
Beside the inspection of GHG emissions, this report can also be the basis for future planning of carbon reduction. It can
also provide our clients with an understanding of greenhouse gas emissions produced by selected products and services.
Among the sites of LCY CHEMICAL CROP., Kaohsiung Terminal Station provides customized services for chemical
assets storage under the client’s name. Other sites are manufacturers of products where all target products are sold to
downstream suppliers for manufacturing or use. Therefore, these sites are considered to provide B2B service and the
system boundaries include raw material acquisition, manufacturing process, and various stages of transportation.
LCY CHEMICAL CORP. 2011 Inventory of Target Product Carbon Footprint
Number
Site
1
Ta-she Site
2
Kaohsiung Terminal
Station
3
Linyuan Site
4
Kaohsiung Site
5
Siaogang Site
Name of Target Product
25 kg polypropylene particles (product number 6331,
woven bag)
Carbon Footprint
42.1 kgCO2e
Per tonne of chemicals, storage and transportation
services
Standard one gallon electronic isopropyl alcohol S
Level
(Product number EIPA2-S-001GSL)
1kg in bulk of acetaldehyde (not include the phase of
translate to client )
1kg bulk bags of pentaerythritol
25 kg paper bags of pentaerythritol
24% per kilogram of bulk formaldehyde
37% per kilogram barrels of formaldehyde
44% per kilogram barrels of formaldehyde
5.91 kg CO2e
149.812 kg CO2e
0.48 kg CO2e
0.7kg CO2e
0.99 kg CO2e
0.89 kg CO2e
1.13 kg CO2e
600 kg flexible freight bags (TPE1487)
20 kg paper bag TPE1487
2,335.49 kg CO2e
75.81 kg CO2e
0.037 kgCO2e
6.956 kgCO2e
1.86 kgCO2e
33
Energy and
Climate Change
Video Conference Encouraged to Lessen Energy Use
The Head Office of LCY CHEMICAL CORP. is located in Taipei, whereas all other sites are spread out in southern
Taiwan. In order to reduce carbon emission resulting from employee business travels and to put carbon reduction
policies into practice, the R&D department in the Head Office conducts video conferences with on-site staff on a
weekly basis. This reduces waste of human resources and energy, and transportation use for business trips. Types of
greenhouse gas emissions reduced because of reduction in transportation use in 2011 are as follows:
Travel Item
Greenhouse Gas Reduced
Description
Taxi / Car to THSR Station
19,846 kg
The average distance from THSR to the Head
Office is 35 km; 51 weeks*12 persons*2
(round trip)*0. 2 kg (carbon emission per
person per km)*35 km
THSR
11,274 kg
51weeks*12 persons*2 (round trip)*0.0267
kg (carbon emission per person per km)*345
km
Driving to the Head Office
4.01 tonnes CO2e
Regular meetings held in Taipei for 2 persons
per month/ single trip; gasoline consumption
of 70.5 L; round trip 141L; annual
consumption 1.692 kiloliter
Carbon reduction through video conferences
2010
Number of persons in Taipei/
Kaohsiung
2011
6/2
7 / 12
Weeks of Meeting/ year
51
51
THSR carbon emission
(per km per person)
0.0267kg
0.0267kg
Round trip distance to Taipei on
THSR
345km*2
345km*2
0.2kg
0.2kg
Average distance in Taxi to
THSR and to Head Office
35km*2
35km*2
Carbon emission
3,307 kg
19,846 kg
Taxi carbon emission
(per km per person)
34
Energy and
Climate Change
Hazard Prevention Due to Climate Change
In order to reduce damages caused by power failure, water shortage or water supply disruption caused by climate
change or extreme climate, LCY CHEMICAL CORP. has developed “Emergency Measures for Operation” and “Water
Supply Disruption Operation Plan” to respond to fire and water shortage, respectively. These plans ensure the continued
production when such incidents occur.
Factor
Response Measures
Fire system maintenance
Kaohsiung Site
Siaogang Site
Installed two emergency generators
(providing 1,250KW electricity)
that can ensure the normal operation
of the site fire fighting and
telephone systems.
Installed a fire pump emergency
generator (500HP) to maintain
normal operation of site fire system.
Production operation
response
Maintain minimum function of
facilities via power provided
through generator and avoid
shutdown
Respond in accordance to
contingency plans of each site
Instrument and Electronics team
repairs equipment and
troubleshooting
Water for fire
extinguishing system
1,500 m3 cistern installed, allowing
normal operation of the site fire
system
Fire
Disruption
of Water
Supply
Production line water
Install generators to provide
electricity for lighting 2
production lines and DCS control
room. Maintain minimum
function of facilities via the
power provided by generators
and avoid shutdown
Respond in accordance to
contingency plans of TPE site
Instrument and Electronics team
repairs equipment and
troubleshooting
2,500 m3 cistern installed, allowing
normal operation of the site fire
system
Reduce site capacity and fill factory spare barrel
Contact transportation companies to bring water from Fensang
Reservoir and the Cheng Ching Lake water supply field
When no water could be obtained externally, use site cistern to maintain
minimum factory production operation
35
Energy and
Climate Change
Energy Saving at Sites
To reduce energy consumption at our sites to achieve our energy conservation goals, LCY CHEMICAL CORP. has
implemented various plans at our sites, including heat recycling, reduction of steam consumption, improve
air-conditioners, and etc. With successful execution of these plans, LCY CHEMICAL CORP. reduced 2,354.7 tonnes of
CO2 emissions in 2011.
Kaohsiung Site Energy Saving Achievements
Energy Saving Action
2009
Install air compressor heating
the molecular sieve (air
dehumidifier)
KWh
690,478
0
0
430
Implement MVR water system
Tonnes of
steam
0
18,374
0
2,912
Replaced aluminum alloy fan in
three cooling towers with second
generation HUDSON FRP blades
to increase cooling effect and
reducing power consumption
KWh
0
345,933
0
212
Replace second floor office
air-conditioning system with
frequency variable energy saving
air-conditioners, reducing the
power consumption of air
conditioning systems
KWh
0
2,864
0
2
Install additional steam boiler to
recycle wasted heat by burning
waste
Tonnes of
steam
0
9,967
0
2,282
Sale of waste
KL heavy
oil
0
0.30
0
2.654
Replace air compressor cooling
water device
KWh
0
222,500
0
138.67
Steel low pressure steam piping
directed to the T1302 for
integration, reducing the use of
the DIPE low pressure steam
Tonnes of
steam
0
0
4,752
1,088.2
36
2010
Energy Saving Benefit
t-CO2e
Unit
2011
Energy and
Climate Change
Siaogang Site Energy Saving Achievements
Replace cooling fan for Cooling
Tower PF-1101D
Reduce blade size of PC-208C
Replace 400W Mercury vapor
lamps to 100W discharge lamps
2010
t-CO2e
Unit
2009
2011
KWh
182,280
0
0
112
KWh
137,016
0
0
84
KWh
0
49,275
0
34
KWh
0
201,382
0
145
t-CO2 e
0
0
1,245.68
1,246
Tonnes
0
0
775
176
Replace 3-1 and 2-1
refrigeration compressor with
high-efficiency models (RC2)
Replace heat exchangers,
enhance condensate efficiency,
reduce non-condensing VOCs
emissions to Flare E-2208,
E-205, E-303
Change Steam Trap to reduce
extra steam use
Linyuan Site Energy Saving Achievements
Equipment / pipeline insulation and
steam trap replacement
Variable frequency cooling fan
installation
Unit
Tonnes
2009
2010
2011
t-CO2e
562.4
453.77
162
325
MWh
0
406.58
37.48
272
MWh
0
0
70.53
43
Installed new filter to press mud off
equipment and installed air
conditioning pump for IPA filling
37
Energy and
Climate Change
Ta-she Site Energy Saving Achievements
2010
t-CO2e
Unit
2009
2011
Change P-922C to stainless steel
impeller, high efficiency and low
horsepower motor
KWh
224,000
0
0
137,984
Raw water pump P-811A/B renewed
with stainless steel impeller, high
efficiency, low horsepower motor
KWh
256,648
0
0
158,095
New 8” air pipeline added to supply
AQU-3571 from the outlet of new
dryer (C4582A/B/C 3 dryer usage
reduced to 2)
KWh
85,904
0
0
52,917
Boiler RO water system and dosing
system newly installed
Kiloliter
363
0
0
1,129,293
C-2877 air compressor changed to
energy saving mode
KWh
0
393,520
0
240,834
Fiber Site 2 production line stopped
using hot water circulation system of
the DR-1 DR-2 & wrinkle machine.
Operation and product quality
remained the same while saving
steam.
KWh
0
133,629
0
81,781
Fiber Site 2 production line stopped
using the hot water circulation system
of the DR-1 DR-2 & wrinkle machine.
Operation and product quality
remained the same while saving
steam.
kiloliter
0
31.7
0
98,619
Installed a new variable frequency air
compressor C-4582D
NT$
0
0
581,818
356,073
Reduced steam use of TPP3 Steamer
kiloliter
0
0
29
90,219
Remarks: Ta-she Site has also started recycling its waste water to a waste water collection pool for reuse after going through TK-901. This
helps to reduce 500 tonnes of water per day (this is an estimated value only, as the flowmeter was not installed during 2009 to 2011)
38
Energy and
Climate Change
Storage and Transfer Station Energy Saving Achievements
Unit
2009
2010
t-CO2e
2011
Reduce freezer use from 10 hours to 9
hours according to actual time of use
KWh
9,141
0
0
5.69
Change IPM discharge mode from
pump to N2 pressure discharge
KWh
105
0
0
0.07
Modify lightening system of sites from
whole area switch to separate area
switch
KWh
0
21,096
0
2.06
Change old lightening lamps to
energy-efficient lamps
KWh
0
0
3,308.4
13.14
Under various energy saving measures, greenhouse gas emission was reduced gradually. LCY CHEMICAL CORP. will
continue to put effort into reducing greenhouse gas emission, lower carbon footprints in our products, and develop
green products in the hope of reducing overall greenhouse gas emissions of the entire society.
GHG Emission
Scope
Source
Unit
2009
Direct Greenhouse gas
Emission (Scope 1)
Company
Vehicle
Boiler
t-CO2e
87,633
94,721
82,701
Indirect Greenhouse gas
Emission (Scope 2)
Electricity
Steam
t-CO2e
308,409
306,758
314,636
Total
396,042
401,479
397,337
Total Revenue (million)
25,182
28,649
30,282
0.06
0.07
0.08
Eco-efficiency Ratio (million)
(Revenue created by the unit of greenhouse gases)
2010
2011
Other GHG Emission
Type of Greenhouse Gas
Unit
2009
2010
2011
CH4 emission
t-CO2e／year
48
49
53
N2O emission
t-CO2e／year
88
95
96
39
Responsible Care
As an important member of the global chemical industry,
LCY CHEMICAL CORP. has been long devoted itself to
improving the environmental protection, safety, and health of
employees.
LCY CHEMICAL CORP. became a founding member of the
Taiwan Responsibility Care Association (TRCA) in 1998.
With demands from chemical supplier chains in mind, we
have helped elevated the performance of working environment
safety and health, and environmental protection among the
chemical industry.
40
Responsible
Care
Following the 1984 Bhopal incident in India that caused 3,000 casualties, the chemical industry realized the high risk of
site shutdown if site safety, health, and environmental friendliness are not improved. Through voluntary efforts and
self-discipline, chemical industries developed responsible care systems to prevent incidents like the Three Mile Island
nuclear disaster, which devastated the nuclear industry.
As an important member of the global chemical industry, LCY CHEMICAL CORP. has long been devoted to improving
environmental protection, safety and health of employees. To strengthen risk evaluation and safety management in
environment, safety and transportation for the domestic chemical industry, LCY CHEMICAL CORP. became a
founding member of the Taiwan Responsible Care Association (TRCA) in 1998. With demands from chemical
supplier chains in mind, we put efforts in elevating the performance of workplace safety, health, and environmental
protection among the chemical industry.
Responsible Care is a concrete commitment of chemical industries around the world, to voluntarily continue
performance improvements in environment, health, and safety (EHS). To achieve this, chemical industries must meet or
exceed regulatory requirements, collaborate with governments or other stakeholders, and participate in voluntary
services. The Responsible Care System has been implemented in 53 countries.
LCY CHEMICAL CORP. has participated in and given full support to various TRCA activities. The TRCA mission
statement “recognizes that Taiwan chemical industry carries social responsibilities and continuing improvements in
environmental, health, and safety performance”, which has become our goal in promoting EHS activities.
The promotion of Responsible Care in Taiwan reached second place among Asian countries, only behind Japan. TRCA
is one of the few associations that had continued regular updates of our environmental safety reports. Furthermore, LCY
also works with external professional organizations to maintain and enhance chemical industry environmental safety
performances, through participation in Level II and III Emergency Response Information Center (ERIC) of the
Industrial Technology & Research Institute (ITRI) and the Taiwan Chemical Awareness and Emergency Response
Association (CAER).
Products and services created by LCY CHEMICAL CORP. enhance the quality of life for all mankind, both now and in
the future. Therefore, we are committed to strive toward an accident-free, injury-free workplace that causes no harm to
the environment. We will keep our achievements in the development of sustainability and environmental safety public.
LCY CHEMICAL CORP. will follow the principles of Responsible Care and seek long-term development and
prosperity of the chemical industry.
41
Green Chemical
LCY CHEMICAL CORP. is based on the concept of “Green
Energy Technology Enterprises with
DNA-Full-of-Creativity” and implements the environmental
protection concepts in the green chemistry to develop green
products. We continue to invest resources to reduce the
environmental impact of product lifecycle, including reducing
chemicals emissions, controlling and reducing the waste
environmental impact, and actively contribute to
environmental sustainability.
42
Green
Chemical
From the procurement of raw materials to production, and all the way to waste disposal, LCY CHEMICAL CORP.
follows the guideline of related laws and puts effort into ameliorating the utilization of energy and resources including
chemicals, water, and waste, from a perspective of environmental friendliness and energy conservation.
LCY CHEMICAL CORP. Environmental Protection Policy
RESPECT FOR
HUMAN LIFE
OBSERVE
REGULATIONS
PREVENTION OF
POLLUTION
SUSTAINABLE
OPERATIONS
CONTINUOUS
IMPROVEMENT
By meeting or surpassing legal standards, maintain safety on all manufacturing, storage, and transportation
processes, ensure the safety of employees, factory facilities, and the life and property of the general public, in an
effort to achieve a zero accident status. Through sticking to “Excellence in Technology”, “Proactivity in Spirit”,
and “Continuous Improvement”, LCY ensures that quality of products and services earn the greatest trust from
customers.
Environmental protection is the primary objective of EMS (Environmental Management System). Implementing
environmental protection measures is the established management objective of the company. Well-executed
environmental protection must achieve our highest respect and safety for people, the ecological system, and
facilities.
Carrying out environmental protection activities, promoting the Responsible Care System, and continuously
improving on the spirit of compliance with requirements and standards. Make sure all internal activities are in
total compliance with applicable laws and regulations, and do so with vigilance to effect the sustainable
operation of every activity.
43
Green
Chemical
Green Product Development
Innovation is deeply rooted in LCY CHEMICAL CORP. We devote great effort to innovative research and development
of our products and technologies to meet challenges in the local and global market, as well as the industrial trend of
low-carbon energy saving and environmental protection. We strive to be part of the green industry and hope to present
ourselves as the best practitioner in this field. In 2011, under the government’s high-value chemical industry policy, we
established our Corporate R&D Center in Nanzi Park II, to enhance technology and consolidate the current R&D
resources at each site. In this R&D Center, the main focus is on the development of solar energy, wind power, LED,
eco-friendly tires, and new technologies of biomass energy.
Thermoplastic Elastomers (TPE) is a special rubber has the advantages of both plastic and rubber, allowing the
manufacturing process to be simplified and downstream manufacturing cost to be reduced through injection molding. It
can be used for shoe soles, as an asphalt modifier, roof leak proofing, hot-melt adhesives, pressure sensitive adhesives,
industrial supplies, electronic components, toys, etc. At the current stage, TPE manufacturers are working towards
reducing production cost, while developing specialized products with higher added-value.
LCY CHEMICAL CORP. is the world’s largest manufacturer of TPE. Because of the global trend of conservation, the
recyclable characteristic of TPE has drawn attention from all over the world. Besides reducing production cost by
improving our manufacturing process, it is also our goal to enhance our level of technology to strengthen our
competitiveness as the leading manufacturer in the global market. We continue to put effort into research and
development of composite materials and strive to expand the market of eco-friendly coating materials for wires and
cables. LCY CHEMICAL CORP. has also developed its own flame retardant composite formulations and process
technologies. Currently, we have successfully developed “SEBS halogen-free flame retardant composites” where two
formulations have passed client’s combustion tests (UL1581VW-1). The composite contains excellent chemical
properties which meet the highest standard of cable and wire heat aging resistance at 105°C (136°C, 168hr).
International Collaborations
Committed to the development of biomass energy and chemicals, LCY CHEMICAL CORP. signed a Letter of Intent for
Collaboration with LanzaTech, New Zealand's top clean energy technology enterprise, to develop biomass energy and
chemicals. First, the two partnership aims to develop renewable low-carbon raw materials that can eventually replace
our dependence on crude oil during the manufacturing of current products. Then, the partnership is expected to extend
our expertise to the development of green products, including biomass plastics and energy. The special gas fermentation
technology developed by LanzaTech has been successfully implemented in the manufacturing process of collecting
steelmaking exhaust to produce ethanol and is expected to be applied to other types of industrial gas emissions. At the
same time, transformational product researchers have currently explored the possibilities of butanediol and other widely
used carbon-hydrogen and oxygen compounds. It is expected that various forms of biomass energy or high added-value
chemicals for special use can be produced.
Developing a strategic advanced technology platform has long been set as our direction. At the 2009 National Energy
Conference held by the Ministry of Economic Affairs’ Bureau of Energy, biomass energy became the center of
attraction. Our international collaboration project of biomass and chemical development will not only help improve
sales but also serve as a token of our contribution to green technology development. The project represents our
commitment to the sustainability of our Earth and a critical step towards a future beyond boundaries.
44
Green
Chemical
LanzaTech CEO Jennifer Holmgren has pointed out that although the market share of biomass chemicals is only 1%
currently, but it is predicted to have an annual growth of 9% for the next 10 years. Furthermore, the global market of
biomass chemicals and plastics is predicted to reach US$ 15 billion in 2020. Therefore, we deeply believe that this
collaboration will be beneficial to both chemical raw material supplier chains and users. LanzaTech will continue to
speedily provide integrated industrial commercialization process.
Environmental Management
As a founding member of the Taiwan Responsible Care Association (TRCA), LCY has always emphasized the
importance of community integration. LCY CHEMICAL CORP. is keen on maintaining good relationships with
businesses and positive interactions with communities. We shoulder our social responsibilities and proactively
organized an environmental management team to avoid the occurrence environmental risks. Through the establishment
of a collaborative network and the nurturing and training of colleagues, LCY CHEMICAL CORP. cultivated a proactive
management style for environmental care, providing high quality petrochemical raw materials and products.
Through the hard work of each factory, LCY CHEMICAL CORP. has implemented and developed an efficient
environmental management system. By the end of 2011, all sites have implemented ISO 14001 for Environmental
Management System (EMS). All sites met ISO 14001 standards for daily environmental management operations to
ensure that all sites meet the minimum environmental requirements.
45
Green
Chemical
Toxic Chemicals Management
LCY CHEMICAL CORP. is committed to strict chemical substance management. It is our responsibility to
continuously increase the safety of our products from R&D, production, transportation, marketing, to sales.
Through standardization and strict control and management mechanisms, all manufacturing processes follow guidelines
set by the Toxic Chemical Substance Management Act to ensure safe storage, utilization, and recycling or disposal of
these substances. Current toxic chemical substance management at LCY CHEMICAL CORP. sites are as follows.
Ta-she Site
No toxic chemical substances, except minor operations in the laboratory.
Kaohsiung Site
Regulated toxic chemical is formaldehyde. There are 11 substances used for quality control
analysis, including methylene chloride and pyridine.
1. License application and personnel designation: Permit applied for formaldehyde or for
the laboratory to use small amounts of chemicals in accordance with regulations.
Designate specific personnel in charge of toxic chemicals.
2. Product packaging/sales: Formaldehyde products are labeled “toxic” in accordance
with regulations. Client’s permit is confirmed before sales. Permit is applied for
product transportation, and use vehicles equipped with GPS trackers as required by
law.
3. Record and Report: The amount of all toxic chemical substances used is recorded
daily. The log is submitted monthly and annually as required.
4. Contingency measures: In site Transport hazard prevention and response plans are
open to the general public for review, while hazard exercises are carried out regularly.
Siaogang Site
Regulated toxic chemical includes 1,3 butadiene and cyclohexane, as well as small amounts of
chemicals used for quality control and laboratory analysis including 8 chemicals: benzene,
benzyl chloride, potassium dichromate, potassium chromate, acetonitrile, methyl-tert-butyl
ether, dichloromethane, and dicyclopentadiene. All are managed and controlled under
457-EMS-06 Toxic Chemical Substances Management Guideline.
46
Green
Chemical
Toxic chemical substance protocol is established to control toxic chemical substances.
Furthermore, Kaohsiung Terminal Station is also a member in Team 4 of the Kaohsiung City
Toxic Disaster Joint Prevention Group. In the event of a serious incident, off-site assistance can
be requested to minimize damage. The toxic substance control measures are as follows:
1. Toxic substance operation: All toxic substance storage is inspected by environmental
audits and has to apply for storage permits before such action is put into practice.
2. Document management: All toxic chemical substances uses are recorded daily and the
records kept for audits.
3. Record report: Records of all toxic chemical substance used and released are reported on
a regular basis.
4. Monitoring system: A monitoring system is established on site for monitoring and
Kaohsiung
Terminal Station
warning. All toxic chemical substances are monitored and alarm will sound when
incidents occur.
5. Warning signs: All toxic substances and their operations facilities are labeled with GHS
warning signs so that staff may be aware of the toxic storage zones and their risks.
6. Contingency measures: In the event of a toxic substance leakage, contingency plans are
carried out according to the types of chemical substances to minimize harm caused by
toxic chemical substances.
Toxic chemical
substances operation
Monitoring system
Linyuan Site
Document management
Warning signs
Record report
Contingency measures
Regulated toxic chemicals manufactured on this site are acetaldehyde and MIBK, with small
amounts of toxic chemicals used for quality control and laboratory analysis, including
potassium dichromate, potassium chromate, potassium cyanide, dimethyl formamide,
dicyclopentadiene, hydrazine, cyclohexan, and etc. All substances are recorded daily and
reported online monthly in accordance with regulations. All substances are managed and
controlled by the 757EMS0104 Toxic Chemical Substances Management Guideline.
47
Green
Chemical
Strategic Planning and Measures
We have 10 strategic plans for the management of toxic chemical substances.
1. Establish hazardous item and toxic chemical substance database for consolidating incident response resources. All
sites are required to build a database on their own hazardous items and toxic chemical substances. Individual site
incident response plans are developed according to site characteristics and manufacturing process features, in an
effort to ensure that the most accurate information will be provided to disaster response units.
2. Strengthen the facilities and storage containing hazardous items and toxic chemical substances so as to prevent
seismic or flood damage. Review the facilities and storage of hazardous items and toxic chemical substances
according to each site’s construction plan, piping components, and machinery settings to prevent accidents and
the secondary disasters following earthquakes or floods.
3. Supervise the safety inspection of each site and enhance self-management and response to accidents. Form sites’
own firefighting teams and establish evaluation mechanisms for firefighting, reporting, and escape plans.
Strengthen self-management and inspection of fire equipments on site and review incident response procedure.
4. Raise awareness of incident prevention and strengthen the joint prevention network with related authorities.
Regular site safety meetings are conducted to further enhance the participation of joint prevention network so that
all rescue resources are consolidated to reduce incident reporting time at each site.
5. Implement manufacturing process safety management and occupational safety supervision plan. Conduct safety
inspections for managing, producing, and using hazardous or toxic chemical substances. Consolidate the
inspections of toxic chemical substance sites and enhance the management quality of contracted safety inspection
partners.
6. Regularly update site safety profile database and geographical environment potential analysis.
A. Verify basic information of sites (e.g. site manager, firefighting manager, security supervisor, emergency
contact person’s address and telephone number, location and type of stored toxic chemical substances) and
follow up regularly for updates of site layout and availability of basic rescue equipments.
B. Potential analysis is conducted according to the geographical environment of the site, e.g. sewage
distribution, waste water flow, wind, burning tower exhaust gas dispersion, potential risk areas, and
population distribution.
7. Establish safety and hygiene management guidelines to enhance the efficiency of safety and hygiene management.
Inspect the potential risk factors of the chemical industry, analyze accident cases, manage risks, improve the
prevention of incidents, establish emergency operational procedures, while enhancing performance evaluations
and auditing management as well as management plans from our contract partners.
8. Establish incident analysis and review system on-site, encourage staff to participate in petrochemical hazard
prevention workshops held by authorities. Discuss and analyze each incident and review its cause, effect, and
improvement plan.
9. Enhance manufacturing process safety guidance for operational staff. Establish risk evaluation mechanism to
understand the risk factors and management system of petrochemical sites to qualify current facilities and
manufacturing criteria.
10. Implement operational plan on a continuous basis to reinforce safe practices of staff. Create a safe working
environment and enhance incident response capacity.
48
Green
Chemical
LCY CHEMICAL CORP. Mid to Long Term Targets for Toxic Chemical
Substances Management
Short term target
Mid-term target
Long term target
1. Plan for hazard prevention
software and its settings to
achieve hazard prevention.
2. Ensure hazard prevention
hardware installation and
maintenance.
3. Enhance firefighting
management and develop fire
control inspection form and
quantify the inspection results.
4. Identify high risk areas to
strengthen the control and
prevention of hazards.
5. Enhance hazard prevention,
exercises, and training to raise
hazard prevention awareness of
the management team and staff.
6. Increase emergency response
capabilities to achieve the goal
of self-rescue and selfprotection.
7. Enhance fire alarm firefighting
capacity.
1. 24-hour monitoring system
installed to inspect firefighting
and safety condition on site. Set
video motion detection features
for early warning and alarm.
2. Locate suitable places for the
installation of auto-fire
extinguishers.
3. Set fixed shot water cannons to
strengthen fire safety protection
on site. Install tools to support
the fire control of neighboring
factories.
4. Evaluation of fire control
pipeline settings to enhance
seismic tolerance.
1. Continued promotion of fire
control plans and create self
inspection form for fire control.
2. Safety evaluation and promotion
of fire fighting improvement
plans.
3. Evaluation and improvement of
fire-proof items.
fire control facilities.
5. Enhance fire control divisions
and fire escape facilities.
6. Evaluate fire control
management promotion,
emergency response plan,
self-protection fire fighting team
training and execution.
building safety.
8. Strengthen fire control
management with continued
joint auditing for improvement
and prevent errors.
9. Develop fire control statistics
for the evaluation of fire control
management and goal setting.
10. Promote fire control area,
distinguish and upgrade fire
fillings.
11. Introduce new engineering
methods for fire control
construction, e.g. sprinkler water
piping mechanical joint
construction method, electrical
room, early fire alarm
equipment installation on high
value facilities such as the clean
room.
12. Implement safety inspection and
risk evaluation of construction
and environment.
49
Green
Chemical
Site Disaster Management
It has always been the goal of LCY CHEMICAL CORP. to build a safe working environment. In the past, disaster
management meant emergency response and rescue in the event of a fire; the goal was to minimize damages. These
days, disaster management means the prevention of fires. In a chemical site fire can be very dangerous because of the
explosive nature of chemicals (so-called hazardous materials). Fires caused by these chemicals are difficult to
extinguish and the duration of fires are usually longer. Categorized by the chemical properties of each substance, these
chemicals can be further divided into flammable gas, ignition liquid, flammable substances, spontaneous combustion
substances, dangerous when wet substances, oxidizing substances, and etc. Careful attention should be paid in
manufacturing, storing, and handling of these substances.
Results of fire prevention can only be achieved with deep rooted work over long period of time. Past experiences have
shown that the reason for the spread of fires include improper handling of the fire source, late discovery of fire, delayed
reporting of fire, failure in early fire extinguishing, and misguidance of escape routes. All these were caused by human
errors. Therefore, from the fire prevention management’s perspective, human factor is far more critical than upgrading
of preventative facilities.
Observing the concept of “taking care of one’s own properties,” world-renowned fire prevention countries such as the
US and Japan have developed an autonomous “fire management system”. Each department is to secure the properties of
its own department. In the event of fire, this system can help minimize damage. LCY CHEMICAL CORP. is keen on
achieving this target.
Fire Safety Equipment on Site
At the initial stage of a fire, with speedy response, fires can be extinguished irrespective of its temperature or coverage
area. Without proper response, fires can expand, quickly increasing the evaporation rate, exposing the site to high
temperature radiation effects, leading to serious consequences including serial explosions. Therefore, the main goal of
fire prevention on site is to extinguish fires at preliminary stages, thus minimizing damage. Moreover, because of the
importance of extinguishing fires at initial stages, fire extinguishing capacity will depend on fire equipments.
Fire Management Achievements
In 2011, Loss Control Department conducted fire inspections on all the sites with the Joint Auditing Project and listed
points of improvement in all aspects from management to human errors. We also participated in off-site occupational
safety workshops. During inspections, because sites have different locations and features, GPS was used to learn more
about the sites and their surroundings. The stored volume of chemical substances in operation was calculated before
escape exercises were conducted. On-site inspection helped us to better understand the risks, thus a risk evaluation
report was prepared as the basis for future fire or hazard damage control.
Fire equipments and fire prevention mechanism are two sides of the same coin; both are needed. Fire equipments at all
sites are inspected regularly in accordance to relevant guidelines. As for the fire management of buildings, we have fire
management system review meetings to look for improvement and correct errors. We discuss methods of improvement
to reduce the risks of fires and ensure the safety of our employees and properties.
50
Green
Chemical
Overview of Environmental Footprint
The environmental footprint covers all sites of LCY CHEMICAL CORP. in Taiwan (including Taipei Head Office,
Kaohsiung Terminal Station, Kaohsiung Site, Siaogang Site, Linyuan Site and Ta-she Site).
INPUT
Liquefied Petroleum Gas (kg)
Power Usage (MWh)
40,000
34,164
280,000
271,314
30,000
23,768
22,312
270,000
260,000
20,000
254,094
251,366
10,000
250,000
112.75
100.18
1,357.20
1,059.48
111.61
838.58
240,000
2009
2010
2011
2009
2010
2011
8,610
Gasoline Usage (Liter)
9
8
120
6,780
7
100
74,310
4,720
6
3,517.05
4
411
60
385.54
3,014.11
40
2
6,069.73
238.04
20
1
0
73,680
80
5
3
Diesel Usage (Liter)
105,790
2009
2010
2011
2009
Heavy Oil Usage (Liter)
15,000
2010
789,705
Steam Usage (Tonnes)
790,000
14,541,000
2011
14,008,000
14,000
13,041,000
2.16
13,000
1.93
780,000
1.97
31.89
12,000
777,830
777,868
36.83
38.93
770,000
2009
2010
2011
2009
2010
2011
51
Green
Chemical
Tap Water Usage (kl)
2,000,000
1,759,177
Total Amount of Recycled and Reused Water (kl)
1,660,298
1,419,082
166,650
166,650
166,650
151.10
171.91
181.71
2009
2010
2011
200,000
160,000
120,000
17.26
14.31
21.34
80,000
40,000
0
2009
2010
2011
OUTPUT
410,000
Total Waste (kg)
Green House Emissions (t-CO2e)
17,136,569
18,000,000
401,479
16,332,523
15,000,000
12,000,000
400,000
397,337
396,042
9,000,000
6,000,000
2,315,624
3,000,000
390,000
2009
2010
2009
2011
2010
2011
Waste Treatment
52
Quantitative indicators
Unit
2009
2010
2011
Waste incinerated
kg
729,075
15,288,790
14,896,040
Waste sent to landfill
kg
426,150
503,550
323,810
Waste recycled
kg
116,279
115,975
208,357
Waste treated for reuse
kg
255,305
326,605
497,655
Green
Chemical
Air Pollutant Emission
80,000
Sulfur Oxides (SOx) Emissions
Nitrogen Oxides (NOx) Emissions
53,936
54,000
53,500
62,276
52,916
53,000
52,500
60,000
52,000
55,105
52,171
51,181
51,500
51,000
50,500
50,000
40,000
49,500
2009
2010
2009
2011
2010
2011
Volatile Organic Compounds (VOCs)
80,000
Suspended Particles
60,000
20,000
40,000
16,000
12,000
8,000
20,000
4,000
0
2009
2010
2011
2009
2010
2011
Water Resource Management
Tap water is the main source of water usage at LCY sites and the wastewater of each site after treatment facilities treat
wastewater to meet the Linhai Industrial Park Sewage Treatment Standards, together with the wastewater from
Siaogang Site, are drained into the discharge pool at Kaohsiung Site. The wastewater is then drained to Linhai Industrial
Park Wastewater Treatment Site for treatment in order to meet EPA effluent standards before being discharged to the sea.
It is our hope that by doing so, we can help reduce the burden put on water resources. Under such strict control processes,
no severe leakage occurred in 2011.
Water Usage Indicator
Unit
Tap water usage
1,000 Liter (1 degree)
Total water recycled
1,000 Liter
2009
2010
2011
1,759,177
1,660,298
1,419,082
166,650
166,650
166,650
53
Green
Chemical
Year
Item
2009
Wastewater (m3)
2010
2011
320,191
235,283
320,067
COD average concentration (ppm)
55
169
211
SS average concentration (ppm)
16
87
83
Remarks: average concentrations of COD and SS are that of Kaohsiung and Siaogang Sites mixed.
LCY Site Effluent Discharge
Year
Site
2009
2010
2011
Kaohsiung, Siaogang Site
320,191
235,283
320,067
Ta-she Site
344,186
396,454
306,870
Linyuan Site
417,409
366,131
367,111
1,081,786
997,868
994,048
Total
Environmental Protection Expenditures
Unit: NTD 10,000/year
Item
Description
Ta-she Site: VOCs leakage over 10,000
ppm in 2009
2009
2010
2011
20
10
0
Waste disposal charge
421
510
834
Gas emissions treatment fee
41
50
118
356
378
304
818
938
1,256
Environmental penalty
Environmental management
expenditures
Marine discharge maintenance fees and
wastewater treatment costs
Total (penalty excluded)
54
Occupational Safety and Health
To substantiate the concept of occupational health and safety, we have formulated the health and
safety policy, hoping to ensure the health and safety of every employees of LCY CHEMICAL
CORP. and the residents in the local communities through the full participation, education,
monitoring, and systematic management mechanisms.
55
Occupational
Safety
and Health
What We Care About
Self-awareness upon safety and health conscience
Safety and health training upon prevention
Spontaneity upon safety and health behaviors
Harmlessness upon safety and health environment
Zero-hazard upon safety and health
LCY CHEMCIAL CORP. Health and Safety Policy
Train employees to conduct self-protection through safety and health awareness education: By raising
employee awareness to workplace hazards and through safety and health education, help employees develop
safety and health consciousness for self-protection and elevate their capacity to manage their own safety and
health, thereby improving the safety and health performance overall.
Strengthen safety and emergency response training: Train employees to be observant of hazards, proactively
conduct inspections, practice standard operating procedures, which all together enhances employee emergency
response capacity. Make sure all employees understand their responsibilities regarding safety and health,
enhance the protection of employee safety and health, and promote workplace harmony.
Train employees to practice safety and health behaviors: Employees should proactively assess the level of risk
in mechanical equipment, operations, and the workplace.
Create a safe, healthy and comfortable working environment: Respect the opinions of business owners and
stakeholders. Establish sound communication channels internally and externally so that all stakeholders and all
people working under the company understand the safety and health management policies of the company,
related requirements, and objectives. Collaborate in the improvement of safety issues, to create a safe, healthy,
and comfortable working environment, and to prevent the occurrence of injuries or illnesses.
Continue to pursuit zero-accident and zero-hazard status: Observe safety and health laws and regulations and
other commitments. Establish hazard assessment and risk management. Implement health examination and
management to strengthen contract management and communication. Practice strict safety and health
operations. Continue to elevate the management and performance of safety and health towards zero-disaster,
zero-accident, and zero-disease.
56
Occupational
Safety
and Health
Management of Occupational Health and Safety
The commitment we have made to safety, environmental care, and health is one of the fundamental requirements of
occupational safety and health management. Furthermore, we also pay close attention to the daily management of safety
and health issues at all sites. Through frequent communication for mutual understanding, we promote projects that are
aligned with government policy, international trends, and the spirit of environmental safety and health. Through these
activities, plans have been implemented at all sites to reap maximum benefits.
In order to efficiently implement occupational safety and health management plans, we have established an
“Occupational Safety and Health Committee ” at all sites where staff from different teams can help review and discuss
relevant policies of EHS (Environmental Health and Safety), as well as introducing the OHSAS 18001 occupational
safety and health management system.
Kaohsiung Terminal Station Occupational EHS Management System and Inspection
Description
Year
2008
Officially joined CDI-T (Chemical Distribution Institute–Terminals)
2008
Received TOSHMS Certification
2009
Received BSI ISO 14064-1:2006 Greenhouse Gas Emission Verification
2010
Certified Zero Hazard through 506,395 hours by the Bureau of Labor Affairs
Kaohsiung Site Occupational EHS Management System and Inspection
Description
Year
2000
Received Self-Protection System Certification
2004
Received ISO14001:1996 Certification
2007
Received OHSAS18001:2007 Certification
2008
Received TOSHMS:2008 Certification
2009
Passed Business Unit Occupational Safety and Health System Performance Verification
2011
Received Healthy Workforce Certification Label
Ta-she Site Occupational EHS Management System and Inspection
Description
Year
2004
Received OHSAS 18001 Certification
2008
2012
57
Occupational
Safety
and Health
Linyuan Site Occupational EHS Management System and Inspection
Description
Year
2006
Received OHSAS18001 Certification
2009
2011
2011
Received Tobacco Control Healthy Workforce Certification Label
Siaogang Site Occupational EHS Management System and Inspection
Description
Year
1996
Received ISO 9001 Certification
1999
Passed Self Protection Evaluation
2000
Awarded Third Place among Self Protection Units
2002
Received ISO 14001 certification
2005
Received ISO 9001:2000 certification
2005
Received ISO 14001:2004 certification
2007
Received OHSAS 18001:2007 Certification
2008
2010
Received BSI (ISO 14604-1) Certification
2011
Received BSI (PAS 2050) Certification
2011 Health and Safety Committee of All Sites
Ta-she
Site
Kaohsiung
Site
56.25%
50%
Employee Representatives
Employer Representatives
Siaogang
Site
Linyuan
Site
38.89%
37.5%
Remarks: Kaohsiung Terminal Station, with insufficient number of employees, is exempt from Health and Safety Committee.
58
Occupational
Safety
and Health
Furthermore, in order to enhance understanding of occupational safety and health, LCY CHEMICAL CORP. continues
to promote training of our employees. Employees are trained to raise the awareness of workplace safety, respond and
adapt to changes at work, prevent accidents, and ensure employee safety and health. All these can help cultivate a
culture of safety at LCY CHEMICAL CORP.
Therefore, we have worked hard to create a 3-year e-learning system project. The system was integrated into our staff
training programs to enhance staff’s awareness of related issues. We plan to introduce more online courses on
occupational safety and health to allow more flexible class schedules.
Response Mechanism for Emergencies
1
Receive relevant operation qualification certificate as statutorily required
1.
According to the Labor Safety and Health Training Guidelines, operational staff must receive operational
qualification certificates from training units authorized by the Council of Labor Affairs
2.
Recertification needed for all certified staff accordance to Section 17 of the Labor Safety and Health Training
Guidelines.
3.
Training at each site are as follows.
Assign to different
departments
Supervisor assigns different training according
to the features of the job description
Receive operational
qualification certificate
Register in LCY
certification system
Receive training
Notify for recertification
2 Continuing education for staff
Arrange regular environmental safety and health professional training and promotions for employees according to
occupational risks.
3 Emergency response training
1.
Develop procedures and plans in accordance to Fire Services Act Section 13, Toxic Chemical Substances
Management Act Section 10, and Labor Safety and Health Act Section 10, and conduct fire and toxic
chemical substance response exercises.
2.
Exercises were carried out to train the emergency response team of each shift. Self training was conducted
during each half of the year in 2011 to implement and strengthen the response capability of our staff.
3.
Prepare different rescue and protective equipments according to product characteristics at each site, and
produce training materials to train the emergency response team members.
59
Occupational
Safety
and Health
LCY CHEMCIAL CORP. Occupational Safety and Health Training Materials
for New Employees
Course name
Basic fire safety, fire equipment operation, and emergency
response
Confined space
Labor Health Management
Hot permit
Chemical hazard prevention and emergency response
Forklift and crane operation safety
Work technique improvement
Guidelines for Safety and Health
Introduction to EHS management system
EHS professional training on confined space
Personal protective equipment use and maintenance
First aid training
Self examination before, during, and after operation
Safety and health management and execution
Safety regulations for working from heights
General knowledge of hazards
For future EHS activities, besides continuing current daily management and follow-up, more manpower and resources
will be allocated to the maintenance of facilities, occupational management, and environmental conservation. It is our
hope that, step by step, EHS performance of LCY CHEMICAL CORP. sites will be published for the public and
stakeholders, to reinforce our commitment to social responsibility.
Kaohsiung Site Emergency Response Plan
To rapidly respond to accidents, employees must be able to quickly organize into teams and take appropriate
actions to effectively control the accident and minimize loss. An emergency response plan was established for the
Kaohsiung Site. The plan not only serves as a guideline for response during critical moments, it also presents
accident scenarios. With this, staff can practice and equip themselves with general knowledge and better judgment
when accidents occur.
To have expected results, employees were given complete training and relevant staff gained knowledge and
techniques necessary for survival. Through regular training sessions, our staff became familiar with all operation
procedures and the processes of each task, and reviewed errors for improvements. The response plan includes,
1. Stage 1 (Hazard Classification: 1) substance leakage on site that does not cause fire or the fire does not
affect other substances or areas. Toxic chemical substance leakage but does not affect nearby area or
eco-systems.
2. Stage 2 (Hazard Classification: 2) fire on site and affects other substances or areas. Toxic chemical
substance leakage that might affect but has not yet affected the nearby eco-system.
3. Stage 3 (Hazard Classification: 3) fire on site and affects other substances or areas. Toxic gas leakage is
severe and may affect the whole site as well as nearby factories and houses.
60
Occupational
Safety
and Health
Hazard Types Analysis and Control
In order to understand different hazards at different sites for effective protection and occupational safety, we completed
the survey of potential hazards for all sites in 2010. This survey collected information on toxic chemicals in all
operation areas, the concentration of these chemical substances, and the duration of exposure, providing LCY
CHEMICAL CORP. the basis for selecting appropriate personal protection plans.
Moreover, we have proactively promoted protection plan training for both managerial and operational staff. Employees
are trained to select appropriate personal protective equipment, evaluate the suitability of their chosen equipment,
understand the possible changes in their gears, and troubleshoot. In 2011, we consolidated emergency equipments
available from all sites, with the hope that this horizontal integrating will prevent accidents.
Site
Ta-she Site
Hazard Type
Specific chemical substances, noise, high temperature, organic
solvents,, dust,, radiation
Siaogang Site
Organic solvents, specific chemicals, noise, high temperature, dust
Kaohsiung Site
Organic solvents, specific chemicals, noise, high temperature, dust
Linyuan Site
Kaohsiung Terminal Station
Organic solvents, specific chemicals
Organic solvents, specific chemicals, noise,
LCY
61
Occupational
Safety
and Health
Ta-she Site
Kaohsiung Site
Siaogang Site
Linyuan Site
Storage &
Transfer Station
2009 2010 2011
2009 2010 2011
2009 2010 2011
2009 2010 2011
2009 2010 2011
Injury rate of site staff
1.18
0
0
0.01
0.01
3.23
1.8
0
0.68
0.87
0
0
0
3.59
0
Injury rate of male
employees
1.25
0
0
0.01
0.01
3.42
1.98
0
0.74
0.87
0
0
0
4.16
0
Factory employee
workday lost rate
29.76
0
0
5.55 44.27 57.91
47.96
0 158.86
0
0
0
0 57.34
0
workday lost rate for
male employees
31.62
0
0
5.95 46.83 61.25
52.71
0 174.57
0
0
0
0
66.9
0
Lost time ratio of
site staff
1.17
0
0
0.93
0.78
3.09
0.94
0
0.71
0.08
0
0.23
0
3.82
0
Lost time ratio of
male employees
1.24
0
0
0.99
0.82
3.27
0.94
0
0.71
0.08
0
0.23
0
4.46
0
Workplace injuries
of factory employees
2
0
0
1
1
4
1
0
1
1
0
0
0
1
0
Independent contractor
workplace injuries
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Occupational Hazard Statistics (%)
62
Occupational
Safety
and Health
Supplier Management
As a founding member of the Taiwan Responsible Care Association (TRCA), LCY CHEMICAL CORP. continues to
emphasize the importance of community integration. We put effort into maintaining interactions between corporations,
clients, and the community. With social responsibility in mind, we have established a network for assistance and
collaboration with others with a proactive attitude. We provide employment opportunities that cultivate and train
talented people to work with us. In this good workplace, employees help build the corporate system of LCY
CHEMICAL CORP. where a proactive, enthusiastic, and innovative atmosphere is cultivated to provide excellent
petrochemical products. Our contributions to domestic and foreign industries have brought satisfied clients and
excellent prospects.
We have adopted purchase reduction and green procurement policies. The policies are shown results. Our stack boards
are recycled and reused through the assistance of storage management staff. When purchasing, products labeled
eco-friendly are prioritized for purchase to meet the requirements of green procurement.
Purchase of Materials
Item
Description
Raw materials: propylene, ethylene
Materials: catalysts, single
additives and pre-blends
Mostly bought from CPC under long-term contract
(1) Catalyst: Mostly purchased from abroad
(2) Single Additives: 66% foreign 34% domestic (including antioxidants,
transparent agents, light stabilizers, lubricants, flame retardants, etc.)
(3) Pre-blend: Mostly from domestic manufacturers
2009-2011 Important Materials Usage
Raw material
Unit: MT
2009 usage
2010 usage
Propylene
MT
327,092
333,584
341,531
Ethylene
MT
12,779
14,279
13,624
Material
Unit: MT
ZN111-4
MT
10
11
10
DSTDP
MT
237
244
215
TEAL
MT
70
70
70
D-Donor
MT
6
6
6
2009 usage
2011 usage
2010 usage
2011 usage
LCY CHEMICAL CORP. has established short, middle, and long-term purchasing strategies to enhance responsible
procurement. When evaluating a new material or new supplier, environmental issues are introduced to our partners.
Environmental concerns are included into the quality requirement. In the future, we hope to include more issues
regarding eco-friendly management (e.g., local purchase, labor conditions) into our criteria of evaluation in annual
supplier reviews.
63
Occupational
Safety
and Health
Future short, middle and long-term purchases and plans will be divided into three aspects, including “quality report of
supplier management,” “principle of local purchase,” and “labor conditions.”
1. Quality report of supplier management
Ta-she Site requires suppliers to provide a COA documents, data sheet, and MSDS of raw materials. All material
should meet the REACH specifications set by the EU. Important materials are expected to meet the Sony GP
standards.
2. Principle of local purchase
Local suppliers are preferentially considered compared to foreign suppliers in order to eliminate carbon emissions
of transportation.
3. Labor condition
During the process of negotiation or material procurement, labor conditions of all potential partners are to be
reviewed via telephone. It is planned that from 2012, all new suppliers must provide a process capability index.
Working conditions and quality documentation will be required as evaluation criteria.
64
Friendly Labor-Management Relations
LCY CHEMICAL CORP. believes that good organization and corporate culture will contribute
to the basic construction of mutual trust between employees and enterprises, and thus triggering
employees’ potential to innovate and perform their duties in the workplace; this is the key to
achieve corporate vision of sustainable development.
We are long-committed to creating a friendly working environment, establishing adaptive
employee development and training programs, constructing a work atmosphere with fairness and
freedom, and enabling employees to achieve work-life balance.
65
Friendly Labor
Management
Relations
To help optimize our employees’ potential at the most suitable position, we consider their workload based on the
capabilities of each individual. The employment principle of LCY CHEMICAL CORP. strictly prohibits child labor. In
addition, gender, religion, nationality, and ethnic differences do not affect placement of employees, payroll,
performance appraisal, promotion, education and training, or their personal welfare.
Because of the global economic depression in recent years, many companies used unpaid leave as a solution to the
market recession. However, considering that the income of our employees would be affected by accepting unpaid leave,
LCY CHEMICAL CORP. avoided instituting unpaid leaves by rescheduling employee shifts.
Employment Status
Year
2009
2010
2011
Total number of employees
596
758
418
Domestic employees
Foreign employees
Direct staff
Indirect staff
Free-term contract staff
Fixed-term contract staff
Male
589
85%
643
85%
695
86%
Female
105
15%
114
15%
117
14%
Male
1
0%
1
0%
1
0%
Female
0
0%
0
0%
1
0%
Male
335
48%
379
50%
403
50%
Female
11
2%
4
1%
9
1%
Male
252
36%
260
34%
289
36%
Female
88
13%
98
13%
103
13%
Male
587
84%
639
84%
692
85%
Female
99
14%
102
13%
112
14%
Male
3
0%
5
1%
4
0%
Female
6
1%
12
2%
6
1%
Remarks: terms are defined as follows,
1.
Direct staff: first line operators
2.
Indirect staff: administrators, logistics, aid staff
3.
Fixed-term contract staff: temporary, short-term, seasonal, and specified workers
4.
Free-term contract staff: workers who continued working without any specified terms
Because LCY CHEMICAL CORP. is in the chemical raw material manufacturing industry, intense labor workload and
physical fitness are required for our 24-hour non-stop operation. Therefore, we currently have more male employees
than female; however, LCY CHEMICAL CORP. recognizes potentials and contributions offered by our female staff. We
promote the outstanding female staff based on the same principles.
66
Friendly Labor
Management
Relations
Male and female ratio for supervisory positions
Assistant Manager/ Manager
Associate Manager
Vice President and up
2009
2010
2011
Male
31
94%
30
94%
31
91%
Female
2
6%
2
6%
3
9%
Male
1
50%
2
67%
4
100%
Female
1
50%
1
33%
0
0%
Male
2
100%
2
100%
2
67%
Female
0
0%
0
0%
1
33%
37
Total
Employee turnover rate
2009
37
2010
41
2011
Male employee turnover rate
1.294%
3.034%
4.176%
Female employee turnover rate
0.863%
0.659%
0.859%
New employee turnover rate
0.863%
1.187%
2.579%
LCY CHEMICAL CORP. employs people with disabilities in accordance with government regulations. In 2011, LCY
CHEMICAL CORP. hired 9 employees with disabilities (total number of employees in 2011 was 814 persons, 1%
should be persons with disabilities in accordance with government regulation). In addition, whenever there are job
vacancies suitable for people with disabilities, LCY CHEMICAL CORP. will contact the disadvantaged groups and
interview the candidates they provide. We are committed to caring for the disadvantaged.
To show our appreciation of the hard work of our staff provide and to help provide job opportunities to the
disadvantaged, LCY collaborates with social welfare associations to arrange for blind masseuses to provide their
services on site. This not only helps our staff to relax and enjoy massage after a hard day’s work, but also provide job
opportunities for the blind. This service received great support from our staff.
Employment of Employees with Disabilities
Year
Total
2009
2010
11
2011
10
9
67
Friendly Labor
Management
Relations
Complete Employee Benefits
No enterprise can prosper without hiring the right employees with the right skills. Therefore, LCY CHEMICAL CORP.
has long been devoted to providing complete and high quality employee benefits so that all staff can achieve their
potential in their position. Besides providing benefits guaranteed by the Labor Law, LCY CHEMICAL CORP.
establishes our benefits system from the employee’s perspective.
We provide group insurance to all employees (including fixed-term life insurance, accident insurance, transportation
accidental death insurance, accident medical insurance, and hospital insurance). The insurance premium is covered
100% by LCY CHEMICAL CORP. Additionally, we cover the hospital insurance for employee spouses and children,
allowing our employees to perceive our care and concern for employees and their families.
Besides full-time employees, we also care for dispatched workers. We request labor agencies to provide the same
insurance that we provide to our full-time employees, so that all staff at LCY CHEMICAL CORP. can have the same
benefits.
Our Head Office and the Manufacturing units are located in Taipei and Kaohsiung, respectively. When a staff is
required to relocate for work, we will explain to the staff and his/her supervisor in person so that the employee
understands the purpose of the transfer, and possible career pathways.
We will also ask his/her supervisor to see if there are any suggestions for the transfer. After reaching the consensus with
the staff member and his/her supervisor, the process will then be conducted to ensure all assistance needed be provided.
We also provide dormitory around the Head Office and at Sites for non-resident employees so that they don’t need to
worry about accommodations when working away from home.
2011
Application rate of parental leave
and reinstatement rate
Male
%
Female
%
Total
Number of employees eligible to apply for
parental leave without pay
47
80%
12
20%
59
Number of employees who applied for
parental leave without pay
0
0%
4
100%
4
Number of reinstated
0
0%
3
75%
3
0
0%
0
Number of staff who continued
to work one year after reinstatement
Reinstatement rate
75%
Remarks: denominator for number of employee eligible for parental leave without pay is calculated from staff who took maternity or
paternity leave within the last 3 years.
68
Friendly Labor
Management
Relations
Employee Welfare Committee
In most companies, the function played by Employee Welfare Committee is pretty much the same. However, the leaders
at LCY CHEMICAL CORP. emphasize that the committee should be human oriented, and provide deep meaning to
employee care.
In addition to providing bonuses, retirement fund, various insurances, staff education grants, and employee children’s
educational grants for full-time employees, LCY’s Employee Welfare Committee is also the best and warmest
organization within the group. All activities and projects stem from “love” and all our projects surround this core value,
from employee benefits to the support we give to Taiwan and the disadvantaged. We not only give out bonuses and
organize staff trips, we also convey the corporation’s thanks to employees, so that every staff member may know their
worth and that their value has been seen. Employees are recognized, cared for, cherished, and taken care of. From this,
employees recognize themselves and their value, and may seek further improvement. This, in turn, benefits the
corporation.
Employee Welfare Committee Affairs and Duties
Item
Applicants/ Criteria
Benefit amount (NT)
Hospitalization
Daily (maximum 15 days)
1,000
Disabled
Employees (levels 1 to 10)
90,000
Births
Each time
3,000
Birthdays
Each person
2,000
Weddings
Each person
3,000
Employee
110,000
Parents, spouse, children
10,000
Parents in-law
5,000
Employee
5,000
Employee’s children for graduate school
4,000
Employee’s children for college or university
3,000
Employee’s children for high school
2,000
Employee’s children for junior high school
1,500
Employee’s children for elementary school or kindergarten
1,000
Chinese New Year/ person
15,000
Dragon Boat Festival/ person
6,000
Mid-Autumn Festival/ person
6,000
Group trip grants
Per Person
23,000
Club and association grants
Per person
1,000
Language class grants
Per person
6,000
Funerals
Education grants
Festival bonus
69
Friendly Labor
Management
Relations
Fair Treatment of Contracted Human Resources
LCY CHEMICAL CORP. gives fair treatment to all employees including contract staff. When selecting human resource
agency partners, we require them to meet all government regulations.
Usually human resource agencies only provide insurance according to the regulations, but as requested by LCY
CHEMICAL CORP., all our contract staffs share the same insurance.... Although doing so increases cost, this is still put
into practice to guarantee benefits for every individual that works for LCY CHEMICAL CORP., and to emphasize the
fact that LCY CHEMICAL CORP. cares for both full-time and contract employees.
Talent Cultivation and Evaluation
LCY CHEMICAL CORP. believes that assisting our staff in self-improvement and staying passionate to confront the
challenges at work is the key to human resource cultivation, through which corporate value and creativity is derived.
To meet this goal, and also to meet the challenges of the upcoming demand of recent expansions in operation, LCY
CHEMICAL CORP. continues the planning of training projects for our employees. We have established a diversified
training system to assist our staff to construct their mid- and long- term occupational and life plans. It is our hope that
every employee in LCY CHEMICAL CORP. can find positions to realize their potential.
We respect self-improvement, and especially focus on personality cultivation and development. We strive to improve
the overall quality of our staff and strengthen management skills of our managers. We also arrange trainings of younger
generations so that we can build human resource base with lecturers and skilled professional. We stimulate the potential
of each employee and bring passion to our teams.
We not only encourage our staff to develop professional expertise in their current position, but also to learn other skills.
We applaud those who proactively attend classes after work to increase their value (e.g: staff are encouraged to take
classes at government certified language schools or any other schools. Subsidies for tuition are granted when staff files
his/her application.) The training we offer at LCY CHEMICAL CORP. includes:
Professional Training Courses
Management Skill Training
Training courses for professional
Through the arrangement by the
Gradual training program to build
skills are provided by internal
human resources department and
a high quality management team.
departments or external
relevant department supervisors,
Through complete and gradual
organizations to encourage
new staff can understand
skill training for different
learning, self-improvement, and
corporate organization and
management levels, develop
enhance interaction with other
culture, working environment
various management capabilities.
professionals.
and respective responsibilities;
Build mutual management
Position rotation is also conducted
enhance new employee’s
language and team spirit that help
to provide staff with different
understanding and rapid
enhance the organization
experiences and challenges at
integration into the company.
performance.
work, enhancing the width and
depth of knowledge.
70
New Staff Training
Friendly Labor
Management
Relations
Average Number of Hours of Staff Training (By Gender)
Gender
Female
Male
Year
2009
2010
2011
Total training hours
136
1,520
1,205
Number of staff
113
354
184
Average training hours
1.20
4.29
6.54
Total training hours
1,117
11,077
9,718
Number of staff
2,407
4,962
1,724
Average training hours
0.46
2.23
5.63
0.49
2.36
5.72
Total Average. hours
2011 Staff Training Funding and Number of Hours
2009
2010
2011
Total number of staff
695
758
814
Total funding (NT$)
1,583,301
2,450,237
2,097,020
Training funding per capita (NT$)
2,278
3,233
2,576
Total training hours (hours)
1,253
12,597
10,923
Training hours per capita (hours)
0.49
2.36
5.72
Talent Assessment and Evaluation Mechanism
A performance evaluation is conducted every 6 months in LCY CHEMICAL CORP. Through interviews and
discussions, staff will have a better understanding about the expectations for his/her work performance; the supervisor
will know if there is anything he/she can improve on. Based on this mutual communication, employees can adjust his or
her goal or career planning accordingly.
LCY CHEMICAL CORP. carries out special training projects for potential employees to further enhance talented
expertise for the corporation. Through this project, it is our hope that employees can benefit from training and gain
capabilities to face issues independently.
Furthermore, LCY CHEMICAL CORP. selects our employees through various evaluation mechanisms. For example,
engineers of different ages are put together to solve problems including chemical engineering tasks, practical
applications, business issues, and various themes for discussion. From this we hope to find talented employees suitable
for further cultivation. If there is a need for position switching or adjustment, thorough communication is guaranteed
and agreement obtained before making adjustment.
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Friendly Labor
Management
Relations
Employee Health Enhancement Plan
LCY CHEMICAL CORP. believes that a healthy workplace is the result of integrating healthy, occupational safety,
sustainable development, and human resource management. Therefore, we built a management system in line with our
sustainable development concept to promote and establish a healthy workplace. We believe that employees are able to
perform their best in such an environment. When the employee is healthy and active, they will keep their spirits up and
generate more creativity, increasing corporate competitiveness.
To encourage employees to be more aware of their health and to elevate their physical fitness, we introduced Health
Promotion Project in 2011 and assist employees to enhance their own health status through self-health management,
group activity participation, diet control, and health check-ups. Other health promotion activities were also promoted.
We have adhered proactively to the “Healthy low-carbon LOHAS activity” promoted by the Business Council for
Sustainable Development. By changing our lifestyles and purchasing habits, we strive towards a healthy low-carbon
world.
The Activities Conducted by LCY CHEMICAL CORP. are as Follows:
Promote the concept of “National Health Day” on the first day of each month, and encourage staff to eat more
fruits and vegetables and less red meat.
The cafeteria provides more fruit and vegetables, and does not provide red meat on the 1st of each month.
The cafeteria does not provide disposable chopsticks or plate.
Staffs are encouraged to bring their own cups. No paper or plastic cups are provided. Water fountains are provided
to discourage packaged water.
Encourage electricity conservation. Encourage employees to use public transportation and bikes.
“Two floors up and three floors down” activity promoted in encouraging employees use the stairs and avoid using
the elevator.
Qigong groups are invited to sites to encourage employees to exercise more.
Voluntarily take care of the environment around sites. Plants were planted along the pedestrian walking for a
green and eco-friendly environment.
72
Friendly Labor
Management
Relations
In 2011, our health enhancement plan was entitled “Prevent Metabolic Syndromes; Reduce rate and figures of the three
highs (high blood pressure, high cholesterol, and high blood sugar)”. Regular exercise can help people lose weight and
body fat. It can also help metabolize accumulated cholesterol, LDL cholesterol, maintain normal blood glucose level,
and avert the treat of metabolic syndrome. To increase staff participation in such activities, the EHS department of each
site was assigned to carry out its own projects for employees.
Activities at Ta-she Site
Health Enhancement Plan
Prevention of Metabolic Syndromes
Activity
Duration
Qigong
Time/ period
Description
0.5h/D
2010/07/05~present
Monday to Friday
Newsletter sent via email
Internal webpage promotion
2011/01/01~present
Once/month
for promotion through
images or text.
Weight loss 100
2011/06/01~2011/11/30
Workshop on cardiovascular disease
prevention
Workshop on the harm of smoking
0.5h/2 weeks
2011/05/18
2h/D
2011/05/18
1h/D
Weight measured every
two weeks.
Activities at Storage and Transfer Station
Activity
Weight Loss and Management
Duration
Time/ period
Weight loss class at Kaohsiung
2011/03/22~
Once/ week
hospital
2011/04/19
4 weeks in total
Description
Exercise starting 10 minute before end
Exercise plan
2011/05/11
0.5h/D
9 weeks in total
of work that continues for half an hour;
employees are requested to exercise
and can continue voluntarily.
Self-recording of exercise
2011/05/30~present
ongoing
Weekly records of physical fitness 2011/01/24~present
ongoing
Using weekly exercise log to remind
employees of the benefits of exercise.
The record can help remind employees
to control weight, blood pressure, etc.
Staff outdoor activities are held to
Outdoor activities
2011/01/01~present
ongoing
encourage exercise and participation in
sports.
E-newsletter promotion
Prevention of metabolic syndromes
/ weight loss result presentation
2011/01/01~present
2011/12/12
ongoing
Newsletter sent via email for
promotion through images or text.
1 day
73
Friendly Labor
Management
Relations
Activities at Siaogang Site
Activity
Duration
Morning Qigong
2011/01/01~present
Weight loss and control class
Weight loss performance
Presentation
Activity
Duration
Monday to Friday
0.5h/D
2011/05/04~
1h/ week,
2011/07/13
12 weeks in total
2011/07/20
1day
Number of participants: 42
Total weight loss: 80.4 kg
Activities at Linyuan Site
Activity
Qigong
Weight loss 100
Duration
2011/09/01~
present
2011/07/11 ~
2011/10/07
Activity
Duration
Monday to Friday
0.5h/D
Measured every
season
Number of participants: 98. Total number of
staff: 134. Total weight loss: 68.6 kg
1. Annual employee health checkups are
conducted to follow-up and screen high
Environmental Medical
promotion
2011/10~
present
risk staff.
ongoing
2. Investigation and evaluation on exposure.
3. Establish occupational sickness
prevention.
Activities at Kaohsiung Site
Activity
Morning Qigong
Weight loss class
Healthy diet Plan
Stress release exercise
before middle shift
Outdoor activities for staff
E-newsletter promotion
74
Healthy diet
Duration
2011/01/01~
Activity
Monday to Friday
present
0.5h/D
2011/04/01~
2h/ time
2011/07/12
4 times
2010/07/01~
1D/month
present
2011/01/01~
present
2011/01/01~
present
2011/01/01~
present
Duration
ongoing
Began in September 2010; no red meat for
lunch on the 1st of every month; only
vegetables or white meat served.
ongoing
ongoing
ongoing
Staff outdoor activities are held to encourage
exercise and participation in sports.
Newsletter sent via email for promotion
through images or text.
Social Contribution
Since the founding of the corporation, LCY CHEMICAL CORP. has always kept our
commitment of improving quality of life as our goal. We aim to establish a working environment
where innovation is encouraged to integrate with traditional industry. Internally, it is our hope to
build a young and proactive corporate culture that leaps toward the cultivation and nurturing of
employees with qualities of integrity, innovation, teamwork, and leadership. Externally, it is our
responsibility to contribute to society. We hope to stimulate our growth by attracting young
experts to join the chemical industry. These elites are the fundamentals of upgrade and
transformation in the future chemical world.
75
Social
Contribution
As the ninth largest chemical producing country in the world, Taiwan, an Island with no natural resources, has built its
chemical kingdom which was once one of the three-trillion-miracles. However, due to depletion of global petroleum
resources and heightened awareness of environmental protection, the chemical industry has been stereotyped as a
“polluting and sunset industry”.
Since the founding of the corporation in 1965, LCY CHEMICAL CORP. has always aimed to improve the quality of
life. By innovating within a traditional industry, we sculpted a young and forward-looking corporate culture. Internally,
we cultivate and nurture employees with integrity, innovation, teamwork, and leadership qualities. Externally, it is our
responsibility to contribute back to the community. We hope to attract young professionals into the chemical industry,
who can advance and transform in the future of the industry.
"Heritage and Innovation" Scholarship Program for Distinguished Professors
and Outstanding Students
To change the stereotype of the chemical industry being a polluting and sunset industry, to increase industry value, to
encourage innovation, and to inspire young talents, LCY CHEMICAL CORP. and the Bowei Lee Education Foundation
together hold an annual competition, providing scholarships for distinguished professors and outstanding students in
chemistry or chemical engineering department in universities.
LCY CHEMICAL CORP. believes that students in Taiwan have creativity, pragmatic spirit, and international
perspective, making them the source of competitiveness for Taiwanese industries. Therefore, the scholarship offered to
outstanding professors and students is an important part of LCY CHEMICAL CORP.’s social responsibility; it
encourages creativity and develops talent.
To motivate collaboration between academia and industry, we award professors devoted to the teaching, research,
development, and application of traditional chemical technologies in colleges and universities. Hopefully, through the
award, chemical technology level can be further enhanced, bringing prosperity to our community and Taiwan’s
traditional industries.
Through the scholarship program, we encourage outstanding students and the young professionals to join this field. This
helps to enhance petrochemical expertise and bring forth the energy of innovation. This positive trend of creativity and
team spirit will hopefully prosper LCY CHEMICAL CORP. stimulate corporate internationalization, and establish a
successful model for the industry. In the future, we hope to expand the scholarship program in related fields so that
more young people can benefit from our contribution to society.
76
Social
Contribution
Cultivation of a New Generation
In 2010, we established the first scholarship program to encourage outstanding undergraduate and graduate school
students in hopes to increase students’ knowledge and skills, so that Taiwan’s chemical industry can abandon traditional
mindsets, and instead embrace and integrate new elements, maintain the competitive edge across the globe, and
eventually benefit our community.
Furthermore, program activities incorporate LCY core values of “creation of value, innovation and improvement,
leadership, team excellence.” It is our hope that through participation in the scholarship program, students will not only
have a better understanding of LCY CHEMICAL CORP., but also have gained the right values upon entering the
workforce.
Scholarship Program for Distinguished Professors and Outstanding Students
Distinguished Professor Award
Applicants have to be professors (including professors, associate professors, and assistant professors) at a public or
private college or university in Taiwan, teaching in the chemical engineering or other related departments (including
biotechnology and material science), with outstanding research in development or promotion of traditional chemical
engineering technology, including publication of significant manuscripts or applications. Applicants are to be recommended by the school of posting. To maximize opportunities for all, applications are not open to persons who have previously been awarded.
Outstanding Student Award
Undergraduate student: junior and senior students studying chemical engineering or other related departments (including
biotechnology and material science) of a public or private college or university in Taiwan.
Graduate student: graduate students studying at chemical engineering or other related graduate schools (including
biotechnology and material science) of a public or private college or university in Taiwan.
77
Social
Contribution
Program Features
Unique evaluation mechanism
The vetting process for this program differs from other scholarship programs. During the second stage, all staffs
are required to participate in the program by setting up creative and interesting tasks which students must
integrate innovation and chemical engineering knowledge to get through including exercises of engineering
methods, chemical engineering expertise Q&A, games, and inventive cooking contests. All these activities
challenged the integrity, innovation, teamwork and leadership qualities of students.
Encourage participation and teamwork
Although the chemical industry is a traditional industry, it still needs diversified and talented people from all
fields. We select our talents based on integrity, innovation, teamwork, and leadership qualities, which are also our
corporate core values . We stimulate the potential and team spirit of students, allowing the community to see a
livelier and innovative chemical industry. By doing this, we hope students who participated in these activities will
use their experience in the learning of chemical technologies and application.
Prompt LCY employees to interact with students
Staff in all departments used after work hours to help in the preparation of the competition and the award
ceremony. Employees held many inter-departmental brainstorming sessions, thinking outside the box, working
together as a team to come up with great ideas for the program. From the activities to the award ceremony,
employees from different departments were mobilized. Our chairman, Mr. Lee, and the R&D Director, Dr. Shih,
both took parts in the activities and award ceremony. Their participation throughout the whole program is a
demonstration of our corporate culture and image.
Award Ceremony for the Outstanding Student Scholarship
In 2011, using the theme of “Developing New Legends in Chemical Engineering, Cultivating New Citizens for the
Future,” LCY CHEMICAL CORP. held the Award Ceremony for the Outstanding Student Scholarship at Kaohsiung
Grand-Hilai Arena .
During the ceremony, students once again experienced teamwork interactions and the chemical engineering industry
through putting together puzzles of famous chemists in history, and presenting a new citizen declaration. Moreover, all
award winners underwent two days of competition, where they had to put innovation and chemical engineering
knowledge into contest activities, including exercises of engineering methods, chemical engineering expertise Q&A,
games, and inventive cooking contests. All these activities challenged the integrity, innovation, teamwork and
leadership qualities of students.
Students who received the awards were invited to state innovative declarations of the expectations to themselves, to the
industry, and to the future, demonstrating the new generation’s idealistic dreams to change the community and the
world.
78
Social
Contribution
Funding and Resources for the 2011 Scholarship Program
Item
Financial investment
Number of participants
Beneficiaries
Content
Approximately NT$ 3.1 million
30 employees
28 students, 5 professors, a total of 33 persons.
Benefits
Stimulate young professionals and deliver
corporate values
By promoting innovative thinking and
encouraging interaction between industry
and academia, students who participated
in the program experienced teamwork and
learned to put knowledge into practice.
They are challenged with tasks that help
them seek breakthroughs in their
professions and look at the chemical
industry with a new perspective. The
culture and corporate values of LCY
CHEMICAL CORP. is also well
highlighted.
Build foundation
for collaboration between academia and
industry
Establish corporate culture
With the spirit of bringing innovation to
traditional industry, the scholarship
program not only helps to cultivate a
young and forward-looking corporate
culture in LCY CHEMICAL CORP., but
also helps to seek and nurture employees
with integrity, innovation, teamwork, and
leadership qualities.
The scholarship program not only
refreshes the corporate image, but also
helps to build the foundation for
collaboration between industry and
academia.
Feedbacks from Participants
Ku Shan-Chieh from National Taiwan University of Science and Technology, Department of Chemical Engineering said, “it is a very
unique and creative scholarship program. I am honored to have participated in it.”
Wu You-Lin, the winner of the first Scholarship Program who is now an employee of LCY CHEMICAL CORP. said, “when I chose
my major, it was when the so-called “Two-Trillion Industries” of semi-conductors and monitors were the most popular choices. I
doubted the prospect of chemical industry. However, the scholarship program I participated in last year blew the stereotype of
traditional industries out of my mind. Looking at these passionate students receiving their awards this year, I hope more and more
people can also join the chemical industry to be part of a great workforce with high added-value and prosperity.”
Social Contribution
Besides the "Heritage and Innovation" Scholarship Program for Distinguished Professors and Outstanding Students, in
2011, we made donations to National Taiwan University Hospital and its affiliate foundations to help enhance
healthcare quality and the well being of the disadvantaged. We also donated to the Lung Yingtai Cultural Foundation for
the cultivation of “New Youth” with qualities of being world citizens.
2009~2011 Total Donation
Unit: NT$ 1,000
2009
2010
2011
Li Mou-Wei Foundation
3,000
3,000
4,390
Other Cash Donations
14,698
2,612
5,209
Total
17,698
5,612
9,599
79
ASSURANCE STATEMENT
SGS TAIWAN’S REPORT ON SUSTAINABILITY ACTIVITIES IN THE LCY
CHEMICAL CORP.’S CORPORATE SOCIAL RESPONSIBILITY REPORT FOR
2011
NATURE AND SCOPE OF THE ASSURANCE/VERIFICATION
SGS Taiwan was commissioned by LCY CHEMICAL CORP. (hereinafter referred to as LCY CHEMICAL) to
conduct an independent assurance of the Corporate Social Responsibility Report of 2011. The scope of the
assurance, based on the SGS Sustainability Report Assurance methodology, included the text, and data in
accompanying tables, contained in LCY CHEMICAL’s operational sites in Taiwan of this report.
The information in the LCY CHEMICAL’s Corporate Social Responsibility Report of 2011 and its presentation
are the responsibility of the superintendents, CSR committee and the management of LCY CHEMICAL. SGS
Taiwan has not been involved in the preparation of any of the material included in the LCY CHEMICAL’s
Corporate Social Responsibility Report of 2011.
Our responsibility is to express an opinion on the text, data, graphs and statements within the scope of
verification set out below with the intention to inform all LCY CHEMICAL’s stakeholders.
The SGS Group has developed a set of protocols for the Assurance of Sustainability Reports based on current
best practice guidance provided in the Global Reporting Initiative Sustainability Reporting Guidelines and the
AA1000 Assurance Standard (2008). These protocols follow differing options for Assurance depending the
reporting history and capabilities of the Reporting Organisation.
This report has been assured at a moderate level of scrutiny using our protocols for:
evaluation of content veracity;
evaluation of the report content and supporting management systems against the AA1000
Accountability Principles (2008);
evaluation of the report against the Global Reporting Initiative Sustainability Reporting Guidelines.
The assurance comprised a combination of pre-assurance research; interviews with relevant employees at
headquarter of LCY CHEMICAL in Taiwan; documentation and record review and validation with external
bodies and/or stakeholders where relevant.
Financial data drawn directly from independently audited financial accounts has not been checked back to
source as part of this assurance process.
STATEMENT OF INDEPENDENCE AND COMPETENCE
The SGS Group of companies is the world leader in inspection, testing and verification, operating in more than
140 countries and providing services including management systems and service certification; quality,
environmental, social and ethical auditing and training; environmental, social and sustainability report assurance.
SGS Taiwan affirms our independence from LCY CHEMICAL, being free from bias and conflicts of interest with
the organisation, its subsidiaries and stakeholders.
The assurance team was assembled based on their knowledge, experience and qualifications for this
assignment, and comprised auditors registered with QMS, EMS, SMS, EnMS, GPMS, SA 8000, GHG
Verification Lead Auditors and experience on the SRA Assurance service provisions.
GP5008 Issue 4 DRAFT
80
VERIFICATION/ ASSURANCE OPINION
On the basis of the methodology described and the verification work performed, we are satisfied that the
information and data contained within LCY CHEMICAL’s Corporate Social Responsibility Report of 2011
verified is accurate, reliable and provides a fair and balanced representation of LCY CHEMICAL sustainability
activities in 01/01/2011 to 12/31/2011. Some statements and data within the scope were not assured due to
lack of accessible records during the timescale allowed for assurance, and these are clearly marked throughout
the text.
The assurance team is of the opinion that the report can be used by the Reporting Organisation’s Stakeholders.
We believe that the organisation has chosen an appropriate level of assurance for this stage in their reporting.
The report is the first to be assured by an independent assurance team and LCY CHEMICAL has taken a bold
step by offering the report to evaluation against both Global Reporting Initiative’s G3.1 guidelines and the
AA1000 Assurance standard. This shows a deserved confidence in their reporting process.
In our opinion, the contents of the report meet the requirements of Global Reporting Initiative G3.1 Application
Level B+ and AA1000 Assurance Standard (2008) type 1, moderate level.
AA1000 ACCOUNTABILITY PRINCIPLES (2008) CONCULSIONS, FINDINGS AND RECOMMENDATIONS
Inclusivity
LCY CHEMICAL has demonstrated a strong commitment to stakeholder inclusivity and stakeholder
engagement. A variety of engagement efforts such as survey and communication to employees, consumers,
investors, local communities, suppliers, media, NGOs and other stakeholders are implemented to underpin the
organization's understanding of stakeholder concerns. It is recommended to have direct involvement of
stakeholders during future engagement.
Materiality
LCY CHEMICAL has implemented appropriate process for determining issues that are material to the
organization. We believe the report has addressed the great majority of LCY CHEMICAL’s material issues at an
appropriate level to reflect their importance and priority to the stakeholders. It is recommended that the process
and criteria applied to assess materiality to be formalized and documented to ensure better consistent result in
future reporting.
Responsiveness
LCY CHEMICAL is committed to being responsive to stakeholders and their concerns. Future reporting may
refocus on how the contribution is making to sustainable development outcomes. The amount of information on
social aspect may be increased in next report.
GLOBAL REPORTING INITIATIVE REPORTING GUIDELINES (2006) CONCULSIONS, FINDINGS AND
RECOMMENDATIONS
Principles, Standard Disclosures and Indicators
The report, LCY CHEMICAL’s Corporate Sustainability Report 2011, is adequately in line with the Global
+
Reporting Initiative G3.1 application level B . Contents of Disclosure on Management Approach may have more
clearly defined policies and goals for each aspect. It is also recommended to have more disclosure on the
performance of supplier chain management, sustainability strategy and material impacts.
Signed:
For and on behalf of SGS Taiwan
Dennis Yang, Chief Operating Officer
Taipei, Taiwan
26 June, 2012
WWW.SGS.COM
GP5008 Issue 4
81
GRI G3.1 Index
Strategy and
Analysis
2.10
3.1
Disclosure Items
Statement from the most senior decision maker of the organization
about the relevance of sustainability to the organization and its
strategy.
Description of key impacts, risks, and opportunities.
Name of the organization.
Primary brands, products, and/or services.
Operational structure of the organization, including main divisions,
operating companies, subsidiaries, and joint ventures.
Location of organization’s headquarters.
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.
Nature of ownership and legal form.
Markets served.
Scale of the reporting organization.
Significant changes during the reporting period regarding size,
structure, or ownership.
Awards received in the reporting period.
Reporting period for information provided.
3.2
Date of most recent previous report
3.3
Reporting cycle.
3.4
Contact point for questions regarding the report or its contents.
3.5
Process for defining report content.
28
3.6
Boundary of the report.
1
3.7
State any specific limitations on the scope or boundary of the report.
Basis for reporting on joint ventures, subsidiaries, leased facilities,
outsourced operations, and other entities that can significantly affect
comparability from period to period and/or between organizations.
Data measurement techniques and the bases of calculations,
including assumptions and techniques underlying estimations applied
to the compilation of the Indicators and other information in the
report.
Explanation of the effect of any re-statements of information
provided in earlier reports, and the reasons for such re-statement.
Significant changes from previous reporting periods in the scope,
boundary, or measurement methods applied in the report.
Table identifying the location of the Standard Disclosures in the
report.
Policy and current practice with regard to seeking external assurance
for the report.
Governance structure of the organization, including committees
under the highest governance body responsible for specific tasks,
such as setting strategy or organizational oversight.
Indicate whether the Chair of the highest governance body is also an
executive officer.
1
1.1
1.2
2.1
2.2
2.3
2.4
Organizational
Profile
2.5
2.6
2.7
2.8
2.9
Report
Parameters
3.8
3.9
3.10
3.11
3.12
3.13
Governance,
Commitments,
and Engagement
82
4.1
4.2
Page
2
2
1
6-8
13
1
12
14
11
15
No significant
changes
18
1
First
publication
Every two
years
1
No relevant
issues
Refer to each
chapter
First
publication
First
publication
82
1
20
20
4.3
4.4
4.5
4.6
4.7
4.8
4.9
4.10
4.11
4.12
4.13
4.14
4.15
4.16
4.17
Economic
EC1
ECONOMIC
PERFORMAN
CE
EC2
EC3
EC4
MARKET
PRESENCE
EC5
For organizations that have a unitary board structure, state the
number of members of the highest governance body that are
independent and/or non-executive members.
Mechanisms for shareholders and employees to provide
recommendations or direction to the highest governance body.
Linkage between compensation for members of the highest
governance body, senior managers, and executives, and the
organization’s performance.
Processes in place for the highest governance body to ensure
conflicts of interest are avoided.
Process for determining the qualifications and expertise of the
members of the highest governance body for guiding the
organization’s strategy on economic, environmental, and social
topics.
Internally developed statements of mission or values, codes of
conduct, and principles relevant to economic, environmental, and
social performance and the status of their implementation.
Procedures of the highest governance body for overseeing the
organization’s identification and management of economic,
environmental, and social performance, including relevant risks and
opportunities, and adherence or compliance with internationally
agreed standards, codes of conduct, and principles.
Processes for evaluating the highest governance body’s own
performance, particularly with respect to economic, environmental,
and social performance.
Explanation of whether and how the precautionary approach or
principle is addressed by the organization.
Externally developed economic, environmental, and social charters,
principles, or other initiatives to which the organization subscribes or
endorses.
Memberships in associations and/or national/international advocacy
organizations.
List of stakeholder groups engaged by the organization.
Basis for identification and selection of stakeholders with whom to
engage.
Approaches to stakeholder engagement, including frequency of
engagement by type and by stakeholder group.
Key topics and concerns that have been raised through stakeholder
engagement, and how the organization has responded to those key
topics and concerns, including through its reporting.
Disclosure on Management Approach
Direct economic value generated and distributed, including revenues,
operating costs, employee compensation, donations and other
community investments, retained earnings, and payments to capital
providers and governments.
Financial implications and other risks and opportunities for the
organization’s activities due to climate change.
Coverage of the organization’s defined benefit plan obligations.
Significant financial assistance received from government.
Range of ratios of standard entry level wage compared to local
minimum wage at significant locations of operation.
20
30
20
24
28
6,22
28
28
22
16,41
16
30
29
30
30
15
15
25
69
-
83
EC6
EC7
INDIRECT
ECONOMIC
IMPACTS
EC8
EC9
Environmental
EN1
MATERIALS
EN2
EN3
EN4
EN5
ENERGY
EN6
EN7
WATER
EN8
EN9
EN10
EN11
EN12
BIODIVERSIT
Y
EN13
Habitats protected or restored.
EN14
Strategies, current actions, and future plans for managing impacts on
biodiversity.
EN15
EN16
EN17
EN18
EMISSIONS,
EFFLUENTS,
AND WASTE
EN19
EN20
EN21
EN22
EN23
EN24
84
Policy, practices, and proportion of spending on locally-based
suppliers at significant locations of operation.
Procedures for local hiring and proportion of senior management
hired from the local community at locations of significant operation.
Development and impact of infrastructure investments and services
provided primarily for public benefit through commercial, in-kind, or
pro bono engagement.
Understanding and describing significant indirect economic impacts,
including the extent of impacts.
Materials used by weight or volume.
Percentage of materials used that are recycled input materials.
Direct energy consumption by primary energy source.
Indirect energy consumption by primary source.
Energy saved due to conservation and efficiency improvements.
Initiatives to provide energy-efficient or renewable energy based
products and services, and reductions in energy requirements as a
result of these initiatives.
Initiatives to reduce indirect energy consumption and reductions
achieved.
Total water withdrawal by source.
Water sources significantly affected by withdrawal of water.
Percentage and total volume of water recycled and reused.
Location and size of land owned, leased, managed in, or adjacent to,
protected areas and areas of high biodiversity value outside protected
areas.
Description of significant impacts of activities, products, and
services on biodiversity in protected areas and areas of high
biodiversity value outside protected areas.
Number of IUCN Red List species and national conservation list
species with habitats in areas affected by operations, by level of
extinction risk.
Total direct and indirect greenhouse gas emissions by weight.
Other relevant indirect greenhouse gas emissions by weight.
Initiatives to reduce greenhouse gas emissions and reductions
achieved.
Emissions of ozone-depleting substances by weight.
NO, SO, and other significant air emissions by type and weight.
Total water discharge by quality and destination.
Total weight of waste by type and disposal method.
Total number and volume of significant spills.
Weight of transported, imported, exported, or treated waste deemed
hazardous under the terms of the Basel Convention Annex I, II, III,
and VIII, and percentage of transported waste shipped
internationally.
63
68
76-79
63
45
63
51
51
36-39
36-39
34
53
53
51,53
LCY is located
in the
industrial area
LCY is located
in the
industrial area
LCY is located
in the
industrial area
LCY is located
in the
industrial area
LCY is located
in the
industrial area
39
39
36-39
No emissions
52
53
52
53
Not applicable
EN25
Products and
Services
EN26
EN27
COMPLIANCE
EN28
TRANSPORT
EN29
OVERALL
EN30
Labor Practices and
Decent Work
LA1
EMPLOYMEN
T
LA2
LA3
LABOR/MAN
AGEMENT
RELATIONS
LA4
LA5
LA6
OCCUPATION
AL HEALTH
AND SAFETY
LA7
LA8
LA9
LA10
TRAINING
AND
EDUCATION
LA11
LA12
DIVERSITY
AND EQUAL
OPPORTUNIT
Y
LA13
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.
Initiatives to mitigate environmental impacts of products and
services, and extent of impact mitigation.
Percentage of products sold and their packaging materials that are
reclaimed by category.
Monetary value of significant fines and total number of
non-monetary sanctions for noncompliance with environmental laws
and regulations.
Significant environmental impacts of transporting products and other
goods
and materials used for the organization’s operations, and transporting
members of the workforce.
Total environmental protection expenditures and investments by
type.
Total workforce by employment type, employment contract, and
region.
Total number and rate of employee turnover by age group, gender,
and region.
Benefits provided to full-time employees that are not provided to
temporary or part-time employees, by major operations.
Percentage of employees covered by collective bargaining
agreements.
Minimum notice period(s) regarding operational changes, including
whether it is specified in collective agreements.
Percentage of total workforce represented in formal joint
management–worker health and safety committees that help monitor
and advise on occupational health and safety programs.
Rates of injury, occupational diseases, lost days, and absenteeism,
and number of work related fatalities by region.
Education, training, counseling, prevention, and risk-control
programs in place to assist workforce members, their families, or
community members regarding serious diseases.
Health and safety topics covered in formal agreements with trade
unions.
Average hours of training per year per employee by employee
category.
Programs for skills management and lifelong learning that support
the continued employability of employees and assist them in
managing career endings.
Percentage of employees receiving regular performance and career
development reviews.
Composition of governance bodies and breakdown of employees per
category according to gender, age group, minority group
membership, and other indicators of diversity.
None
44
54
34
54
65
66
67
69
No labor union
68
58
62
72
No labor union
71
70,71
-
67
LA14
Ratio of basic salary of men to women by employee category.
66
LA15
Return to work and retention rates after parental leave, by gender.
68
85
Human Rights
INVESTMENT
AND
PROCUREME
NT
PRACTICES
NON
-DISCRIMINA
TION
FREEDOM OF
ASSOCIATION
AND
COLLECTIVE
BARGAINING
HR1
HR2
HR3
HR4
HR5
CHILD LABOR
HR6
FORCED AND
COMPULSOR
Y LABOR
HR7
SECURITY
PRACTICES
HR8
INDIGENOUS
RIGHTS
HR9
Assessment
HR10
Remediation
HR11
Society
Local
communities
SO1
SO2
CORRUPTION
SO3
SO4
PUBLIC
POLICY
ANTI-COMPE
TITIVE
BEHAVIOR
COMPLIANCE
86
SO5
SO6
Percentage and total number of significant investment agreements
that include human rights clauses or that have undergone human
rights screening.
Percentage of significant suppliers and contractors that have
undergone screening on human rights and actions taken.
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.
Total number of incidents of discrimination and actions taken.
Operations identified in which the right to exercise freedom of
association and collective bargaining may be at significant risk, and
actions taken to support these rights.
Operations identified as having significant risk for incidents of child
labor, and measures taken to contribute to the elimination of child
labor.
Operations identified as having significant risk for incidents of
forced or compulsory labor, and measures to contribute to the
elimination of forced or compulsory labor.
Percentage of security personnel trained in the organization’s
policies or procedures concerning aspects of human rights that are
relevant to operations.
Total number of incidents of violations involving rights of
indigenous people and actions taken.
Percentage and total number of operations that have been subject to
human rights reviews and/or impact assessments.
Number of grievances related to human rights filed, addressed, and
resolved through formal grievance mechanisms.
Nature, scope, and effectiveness of any programs and practices that
assess and manage the impacts of operations on communities,
including entering, operating, and exiting.
Percentage and total number of business units analyzed for risks
related to corruption.
Percentage of employees trained in organization’s anti-corruption
policies and procedures.
Actions taken in response to incidents of corruption.
Public policy positions and participation in public policy
development and lobbying.
Total value of financial and in-kind contributions to political parties,
politicians, and related institutions by country.
SO7
Total number of legal actions for anticompetitive behavior, anti-trust,
and monopoly practices and their outcomes.
SO8
Monetary value of significant fines and total number of
non-monetary sanctions for noncompliance with laws and
regulations.
65
No relevant
issues
-
66
63
No relevant
issues
No relevant
issues
75
LCY is located
in the
industrial area
No relevant
issues
17,18
None
None
No relevant
issues
SO9
Operations with significant potential or actual negative impacts on
local communities.
SO10
Prevention and mitigation measures implemented in operations with
significant potential or actual negative impacts on local communities.
Local
Communities
Product Responsibility
CUSTOMER
HEALTH AND
SAFETY
PR1
PR2
PR3
PRODUCT
AND SERVICE
LABELING
PR4
PR5
MARKETING
COMMUNICA
TIONS
PR6
PR7
CUSTOMER
PRIVACY
COMPLIANCE
PR8
PR9
Life cycle stages in which health and safety impacts of products and
services are assessed for improvement, and percentage of significant
products and services categories subject to such procedures.
Total number of incidents of non-compliance with regulations and
voluntary codes concerning health and safety impacts of products
and services during their life cycle, by type of outcomes.
Type of product and service information required by procedures, and
percentage of significant products and services subject to such
information requirements.
voluntary codes concerning product and service information and
labeling, by type of outcomes.
Practices related to customer satisfaction, including results of
surveys measuring customer satisfaction.
Programs for adherence to laws, standards, and voluntary codes
related to marketing communications, including advertising,
promotion, and sponsorship.
voluntary codes concerning marketing communications, including
advertising, promotion, and sponsorship by type of outcomes.
Total number of substantiated complaints regarding breaches of
customer privacy and losses of customer data.
Monetary value of significant fines for noncompliance with laws and
regulations concerning the provision and use of products and
services.
LCY is located
in the
industrial area
LCY is located
in the
industrial area,
no relevant
mitigation
measures
44
45
No relevant
issues
33
No relevant
issues
No relevant
issues
No relevant
issues
None
87
+
LCY2011
2011 LCY CHEMICAL CORP.
Corporate Social Responsibility Report

20130806李長榮英文版 P1-P18.ai

Transcription

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