ASIA CEMENT

CORPORATION
Cover design concept
ASIA CEMENT
CORPORATION

Asia Cement valued environmental education by building an eco-park so that

the next generation are able to learn the wonders of insects and the nature. The
picture shows that children are happily playing and butterflies flying around, fully
demonstrating that Asia Cement is taking the responsibility to the environment.
In addition, parents and children are able to understand this nature again so that
they are satisfied with the curiosity to all creatures in the nature and discover the
answers of wisdom from the enriched natural resources!
Content

1
Outline of 2019 Report
About the report
01 0 4 | Local Social Care
48 Management Guideline & Highlights of
Local Social Care
48 0 3 | Management of Value Chain
106
106
Guideline and highlights of management of value chain
2 Words from the Chairman 108 3.1 | Energy saving plant- Yuan Long Stainless Steel
50 4.1 | Caring local adoriginal people
110
3 Misssion, Vision, Strategies and Sustainable Goals 3.2 | The Driver of Circular Economy-Nanhua Cement
of Asia Cement 52 4.2 | Supporting the education for aboriginal youth
112 3.3 | A New Conduct for the Safety of Living-Ya Tung
6 Asia Cement Sustainable Value Chain 53 4.3 | Special column of local people interview Ready-mixed Concrete
7 Highlights of Asia Cement 2019CSR 54 4.4 | Social expenditures and integrated community 114 3.4 | Quakeproof and Low Carbon Construction Method – Ya Li Precast

56
development 116

08
3.5 | Ensuring the Safety of Transport- Fu Ming (Da) Transport
Sustainable Green Cyling 118 3.6 | A Safe and Energy-saving Low Carbon Power Generation
0 5 | Sustainable Environmental Plant – Chiahui Power

120
01| Sustainable Mining Mountain Education

56 Management Guideline & Highlights of

8 Management Guideline & Highlights of the Sustainable Enviornmnetal Education
Mining Mountain 0 4 | Management of Sustainable Issues
58 5.1 | Deeply planting the seeds of sustainable hope
10 1.1 | Mining monitoring and mining area safety
62 5.2 | Comprehensive environmnetal education 120 4.1 | Identifying Sustainable Issues
12 1.2 | Mining mountain vegetation restoration and bio-diversity lecturing material 122 4.2 | A strategy of integrating and communicating with the
14 1.3 | Special column of local people interviews 64 5.3 | Steady Rising-Asia Cement Eco-park stakeholders
16 1.4 | Global model of sustainable mining mountain traveling exhibitions 126 4.3 | Management and Disclosure of Significant Issues
66 5.4 | Speical column of local people interview

22
20 1.5 | Caring and communicating with local 127 4.4 | The confirmation of significant issues and the management of reports

68 128
aboriginal people
Sustainable Governance Cycling
02| Sustainable Development of Circular Economy
0 1 | Corporate Governance
0 5 | Initiative of Sustainable Action
22 Management Guideline & Highlights of the Circular Economy 68 Guideline and highlights of corporate governance
24 2.1| Sustainable cycling of resources in cement 70 1.1 | Corporate and Governance Status 128 5.1 | The disclosures and indexes of sustainable mining
manufacturing process mountain (self-requested by Asia Cement)

30
74 1.2 | Products and Economic Performance
129 5.2 | Cement Sustainability Initiative (CSI) Index
28 2.2 | Sustainable benefits of circular
economy 76 1.3 | Adaptation and Mitigation to Climate Change
129 5.3 | Guideline of ISO 26000 Enterprise Social Responsibility
03| Low Carbon Green Smart. Manufacturing 80 1.4 | Supply Chain Management

84
82 1.5 | Customer Service
30

32
33
36
Management Guideline & Highlights of Low Carbon
Green Smart Manufacturing
3.1 | Low cabon green leadership
3.2 | Smart manufacturing cement 4.0
3.3 | Energy resources and cabon management
0 2 | A happy workplace
84 Management Guideline & Highlights of
a Happy Workplace
86 2.1 | Attraction and retaining talents
Appendix
130
130 Appendix 1 | Index of content, GRI Standards: General
131 Appendix 2 | Index of content, GRI Standards: Special Issue
42 3.4 | Water resource management 92 2.2 | Development of human resource Standards
46 3.5 | Pollution prevention management and waste reduction 96 2.3 | Occupational health and safety 133 Appendix 3 | AA1000 External Assurance Statement
About the Report
Dear Readers Integrating SDGs to be the structure of the report and
integrating the value chain
This report is compiled by consolidating the business of Asia Cement and basing the reporting
This report is edited and compiled in accordance with 2016 principles to describe the issues concerned by many. In 2019, the Company adopted SDGs as the
GRI standards issued by Global Reporting Initiative, the content structure of reporting to implement sustainable green cycling and sustainable governance cycling.
It also integrated the comprehensive performance of Asia Cement value chain to demonstrate the
of it is prepared based on the “comprehensive” options plus
effort devoted by the Company in the economic, social and environmental areas for the purpose of
the international guidelines and standards including Cement presenting it to the stakeholders the willingness of striving for working on the sustainable issues.
Sustainability Initiative (CSI) index, UN Sustainable Development
Goals(SDGs) ,ISO 26000 Social Responsibility Guideline and Dow Formulating the strategy of integrated communication and
Jones Sustainability Indices(DJSI). Furthermore, this report has realizing the engagement of stakeholders
passed Taiwan SGS External Assurance Statement and complied
with the third party Type 1 moderate assurance of AA1000 AS 2008, In 2019, Asia Cement worked hard to take its corporate social responsibility to fulfill the expectation
for providing reliable public information to readers. from the society. It formulated a strategy of integrated communication and undertook a comprehensive
and real-time communication by establishing an Asia Cement service center in the neighborhood of the
mining area to actively communicate with local residents face-to-face, and to provide various assistances
momentarily. In addition, the Company created on-line, real-time and social media group communication
feedback mechanisms to integrate the communication and engagement with the stakeholders both
virtually and in reality. The purpose is to enhance the trust and inter-dependence among people.

Scope of Report
This report covers the period from January 1 to December 31, Guide of reviewing Contact us
2019. It mainly provides the enterprise sustainable management the report
and performance information of Asia Cement’s major operation
sites. The physical operating companies disclosed include Ya Tung For the convenient, quick and Please contact us for any comments or suggestions:
Ready-Mixed Concrete, Yuan Long Stainless Steel, Ya Li Precast precise reading, a quick link Address 30-31 F, No. 207, Dunhua S. Rd, Sec. 2, Da An District, Taipei City 106, Taiwan
Prestressed, Nanhwa Cement, Chiahui Power and Fu Ming(Da) mode is provided to readers: Responsible Unit Asia Cement Corporate Sustainability Report Committee
Transport. The financial statement is published after being audited Contact Person
by the certified public accountant, parts of the figures are quoted The content and index have Spokesperson VP Wei-kun Chou wk.chou@acc.com.tw Tel 02-27378940
from the Annual Report, government sectors, and the public quick links to the respective
chapter and section. Secretariat: Mr. Sheng Yu Lin sheng.lin@acc.com.tw Tel 02-27378943
information disclosed on the relevant websites, they are presented Email for comments and appeals on CSR csr@acc.com.tw
Further details can be accessed
in the conventional manner of describing texts and values. through QR code by mobile Fax 02-23785191
Exceptions will be explained in the content of the report. phone scanning or clicking on
e-file.
This is a report issued in the seventh year, the last report was
issued in June of 2019. This is an annual report, the next report will Web:
be issued in June of 2021.

ASIA CEMENT CORPORATION

CORPORATE SOCIAL RESPONSIBILITY REPORT 1
 Words from the Chairman
In the operation of its business, Asia Cement has water footprints and circular economy through the third- Asia Cement communicates with the general public
always adopted the principle of “taken from the society, party verifications. It is expected to reduce the con- by ways of official Line account, Facebook, CSR web-
used it for the society”, a CSR (Corporate Social Re- sumption of resources and the emission of green house site, Eco-park website, Service Center interactions, to
sponsibility) concept of Far Eastern Group, to continu- gas, and to create new values for cement industry by allow people from all walks of life to see our care to the
ously push forward the unlimited duo-cycling of “green adopting the sustainable operation model of circular society. In recent year, the Company keeps expanding
sustainable cycling” and “sustainable governance cy- economy. its eco-park which has attracted more than 10 thousand
cling” in order to integrate the sustainability issues of In addition to install a comprehensive environmen- visitors each year to enjoy and learn environmental
environment (E), society (S) and corporate governance tal protection, water protection and mining area safety eco-knowledge. In 2019, the total visitors had reached
(G). Through the effort of all employees and adopting system, Asia Cement Hualien Hsinchengsheng mining over 30 thousand representing a triple growth of the
the business strategy of “high quality, high efficiency, area also took the initiative to request for numerous deeply planted seeds of hope. The park has become
high level of environmental protection, low cost”, the safety evaluations and monitoring operations which an ideal place for the local community and tribes to con-
Company keeps creating values for the society and even exceeded the legal requirements. The data fair- duct their activities.
high return for the shareholders. ly monitored and measured by the third party is made The year of 2019 was the 70th anniversary of Far
Taiwan is an island-type economic entity which is available transparentely to the public through an open Eastern Group, its celebrations were mainly focusing
highly relying on imports, it is vital to own various import- information website. Furthermore, it fully cooperated on charitable events. Asia Cement specifically planned
ant national resources including cement manufacturing with the government authority to receive routine super- and held a “Far Eastern 70 Step Rising – Asia Cement
process, so that the supply can be timely whenever vision and inspection. The results of Asia Cement’s Eco-park Travelling Exhibition” event to travel around
needed, and the prices will not be controlled by other mining mountain restoration have been deeply rec- western Taiwan displaying the stick insects of the park
countries, hence, our citizens will feel at ease. Since ognized in years by the cement industries of various to the public, effectively bringing ecological education
its founding Asia Cement has participated numerous countries and received many awards, considered to from Hualien to other places, so that adults and children
significant infrastructure constructions including trans- be a model of the industry. In 2019, the Company was in the cities were able to learn the unique ecological
portation, civil and national defense facilities, covering invited to to attend “The World Cement Association knowledge. The Company also took the chance to de-
mining, clinker, cement, ready-mixed concrete, precast Annual Conference” in Shanghai to share the mining liver the concept of “creating a better future collective-
construction material, as well as the vertical integration mountain restoration experiences. Members of World ly, moving forward hand in hand”. Asia Cement had
of up, mid and down stream construction works, hence, Cement Association visited Hsinchengsheng Mining demnonstrated its determination of contributing back to
the overall value of cement business is enhanced. Area to gain some experiences. the society and its ever-expanding positive influence to
In maintaining the sustainable operation and ex- Asia Cement very much values the safety, benefits others.
tending the cement business, Asia Cement keeps and right of aboriginal residents, it continuously carries In 2019, Asia Cement had continuously been recog-
striving for its innovation and upgrading in green devel- out the local feedback mechanism in order to maintain nized by many domestic and international CSR awards.
opment and digital transformation. The Company has co-existence and co-prosperity with the local communi- It again received the honors of “Asia Responsible En-
once again been selected as a constituent of “Taiwan ty. Furthermore, it keeps conducting dialogues and sin- terprise Award (AREA)” and “Green Leadership” with
Corporate Governance 100 index”, “Taiwan Sustain- cere communication with local aboriginal tribes, taking its “Deep Planting of the Seeds of Sustainable Hope
ability Index” and “Taiwan High Compensation 100 the initiative to provide many mining mountain safety -Asia Cement Ecological Environment Education Pro-
Index”. While pursuing the growth of profitability, Asia presentations in the tribes as well as site-inspections. gram”, the only company in Taiwan cement industry re-
ASIA CEMENT CORPORATION Cement is also taking the initiative to bear its corporate An Asia Cement Service Center was established to pro- ceiving these special awards in two consecutive years.
social responsibility with the concept of “fulfilling social vide services to local residents including answering any In the same year, Asia Cement had also received six

Chairman Douglas Hsu responsibility, reducing social cost and creating social
value for cement industry” by aggressively investing
safety issues regarding the mining mountain, periodi-
cally visiting households to learn the needs of residents,
awards from “Global Corporate Sustainability Award
(GCSA)” and “Taiwan Corporate Sustainablity Award
into green manufacturing and sustainable operation. offering local job opportunities, emergency assistance, (TCSA)” including GCSA “Great Practice”, TCSA “Top
The “Portland Cement” produced by Asia Cement Hual- repairing houses, subsidizing electricity bills, installing 50 Taiwan Sustainable Corporate Award”, “Top 50 Cor-
ien Plant in 2019 had passed the verification of ISO water pipelines and supplying mountain spring water, porate Sustainability Report Platimun Award”, “Growth
14067:2018 product carbon footprint standard and ISO improving community water drainage, assisting tribal Through Innovation Award”, “Social Inclusion Award”
14046:2014 product water footprint standard. In addi- education, helping to install butterfly eco-parks for the and “English Reportage Gold Award”. These honors
tion, it also passed the verification of circular economy community and public institutes. The Company had re- represented that the long-term effort of Asia Cement
BS 8001:2017 highest maturity class recognition model ceived positive responses from many tribal residents. had been professionally recognized, the Company will
by its dual-mode of substituting both raw material and continuously strive for the actions of sustainability in
fuel. Asia Cement is the first company in the world showing its determination of fulfilling corporate social
receiving three certificates of cement product carbon/ responsibility.

2 O R
Misssion, Vision, Strategies and Sustainable Goals of Asia Cement

The Founding Spirit of Asia Cement Misssion, Vision, Strategies and Sustainable Goals

Mission and Vision of Asia Cement

Innovation
Mission Vision
The first choice partner for building Continue to pursue high quality, high efficiency,
sustainable green home. high environmental protection, low cost and in-
novative products to become the role model of
the cement industry.
Sustainable Strategy
Integrate the resource comprehensive performance, sustainably
Economy innovate products, create cost effectiveness, create the highest
value.

Fulfill energy saving and carbon reduction, build green home-

land, enhance ecological education, achieve the environmental
Environment sustainability.

Create happy workplace, support the disadvantaged groups,

Society cultivate the cultural heritage, create a harmonious society.
Sincerity Diligence Thrift Prudence

Sincerity with faith, Diligence with Prudence with

Sustainable goals and action items
Thrift with
exert the spirit of devotion, make humble attitude, consideration,
teamwork. efficient operation. execute the duty pay attention to 2030 2019
realistically. personnel and
Roadmap of Sustainable Goals Sustainable green dual-cycling
property safety.
For years Asia Cement has been pursuing a core management principle of
For years, the employees follow this model. This has become the corpo- high quality, high efficiency,high environmental standards and low cost. It has
rate spirit. Chairman Hsu expects the employees to be clean and clear with steadily become the benchmark for the cement industry In today’s fast changing
thorough analysis until done. He also emphasizes to increase the service global environment, we will keep ourselves.flexible and agile, continue to make
the adjustment, advancement and innovation with the spirit of sustainability in
quality and efficiency so that Far Eastern Group may grow sustainably.
mining mountain restoration, smart manufacturing, circular economy, social care
and environmental education, and become an important green partner for build-
ing sustainable home land!
ASIA CEMENT CORPORATION
CORPORATE SOCIAL RESPONSIBILITY REPORT 3
 The path to the goal of sustainability by 2030
Significant issues Strategies of Sustainability Corresponding
Actual Results in 2019 Goal of 2020(Short-term) Goal of 2025(Mid-term) Goal of 2030(Long-term) SDGs
Section

8 11
8 disclosure items of
sustainable mining
Sustainable mountain 100% reached 12 KPIs 100% reached 12 KPIs Green 1
mining 15 16
mountain and 12 KPIs
eco-diverisity

Initiating and sequentially Completing the Introducing the

Cement 4.0 implementing three phases and nine installation of Implementing experiences of smart 7 8 9 12
cement 4.0 manufacturing to other Green 3.2
items in Cement 4.0. cement 4.0 operation sites

Reducing strength of The emission strength of cement 7 9 12 13

emission bond material reduced by 1.77%* 2%* 3%* 6%* Green 3.3
(Tonnage of CO2e/Tonnage of cement bond material)
The electricity saved from the energy saving
program and generated from the waste heat in Effectively using energy and increasing the efficiency of 7
Low carbon Effecive use of energy Hualien Plant was sufficient for the Green 3.3
manufacturing consumption of 30,000 housholds.
manufacturing process
process and
smart 85.97% of the water from Recycling over 85 % of the water from Hualien Plant 6 12
manufacturing Recyling over 85% of the
water in Hualien Plant Hualien Plant manufacturing manufacturing process Green 3.4
process was recycled.

Pollution prevention and 75% of the total industry waste 11 12

was recycled and reused. Preventing pollution and reducing waste Green 3.5
waste reduction

Science based targets Committing and Planning to reach the

initiative SBTi Evaluating SBTi reduction target evaluating SBTi reduction target by 2024
reduction target

Internal carbon pricing Setting internal Green 3.3

Evaluating internal carbon pricing carbon pricing Realizing internal carbon pricing
13
In compliance with
Climate National Absolute The actual absoluate reduction Based on National GHG Phased Control Target to set the absolute
strategy Volume Reduction reached 33.2%* reduction target of Asia Cement *
Target (Reduction of 2% by 2020, 10% by 2025, 20% by 2030)

Implementing TCFD
climate strategy Building TCFD preliminary structure Implementing TCFD climate strategy Sustainability1.3

6 8
The substitute ratio of raw material 127 Kg 307 Kg 399 Kg Green 2.2
reached 43kg/metric ton of cement /Metric Ton-Cement /Metric Ton-Cement /Metric Ton-Cement
Increasing substitute 9 11
ratio of raw material
Circular and fuel
The substitute ratio of
economy fuel reached 2% 5% 10% 15% 12 Green 2.2

Stablizing high 8
dividend payout policy Cash dividend yield 7.0% Stablizing high dividend payout policy Sustainability1.2
Economic
performance
Note*: Linking to National GHG Control Target of 2005 baseline year.

4 Outline of 2019 Report

Significant issues Strategies of Sustainability Corresponding
Actual Results in 2019 Goal of 2020(Short-term) Goal of 2025(Mid-term) Goal of 2030(Long-term) SDGs
Section

4 8

Adding 7,000 people

each Year. Newly added 31,708 people, 35,000 people 50,000 people 65,000 people 11 12
cumulated 79,360 people. Cumulated Cumulated Cumulated Green 5.1
Sustainable Totaled 540,000 people (exceeding the target of 50,000 people) 85,000 people 275,000 people 540,000 people
environment by 2030. 17
al education 13

Asia Cement Hualien Plant

Contributing back to contributed NT$25,290,000
Stablizing social expenditures and total community development 1 4 Green 4.4
local community. to the local community,
Local social
care Total social expenditures NT$ 50,200,000
6 9
Multiple services Green 1.5
provided by Asia Up to 1,000 cases of services Continuously providing diversified services to local residents
Cement Service provided to local residents.
11 13 Green 4.1

28% of the total employees in Asia

Caring local Local aboriginal people Cement Hualien Plant are aboriginal. 14 15
aboriginal will have the priority to Local aboriginal people will have the priority to be hired. Green 1.5
people be hired. 48% of the total newly hired in Asia
Cement Hualien Plant are aboriginal.

Establishing a system for

employee benefit to Employee benefit reached 1-4% of 8
Employee benefit reached 0.1-4% of net profit before tax. Sustainability2.1
reach 0.1-4% of net net profit before tax.
profit before tax.

Increasing all items of

Continuously increasing All items of employee satisfaction employee satisfaction 8
Attracting employee satisfaction. level were increased level comparing to All items of satisfaction level over 70%. Sustainability2.1
and retaining comparing to last time. last time.
talents

Praticing human Completing human Completing 100% evaluation of 4 8

right policy. Human right policy drafted right evaluation within suppliers or subsidiaries. Sustainability2.1
the company

Adopting a dual-track promotion system including professional

Systematically Implemented 6 categories and 24 position or management position. 4 8
Sustainability2.2
Human cultivating employees. projects of training courses. Continuously providing systematic long-term
resource career development training.
development

Implementing ISO 3
Occupational 45001: 2018 Passed ISO 45001: 2018 verification Implementing ISO 45001: 2018 Sustainability2.3

safety and
health

ASIA CEMENT CORPORATION

CORPORATE SOCIAL RESPONSIBILITY REPORT 5
 Asia Cement Sustainable Value Chain

Green smart manufacturing High value products and services from the value chain:
to reduce energy 13 Chiahuei’s clean low carbon high efficient
use and emission power generation
Creating new value for cement Fu Ming (Da)’s safe, rapid and responsible
transport
and supporting the input of local 12
social resources, expanding Yuan Long’s high quality cold roll stainless steel
eco-environmental education and 9 11
Nanhua’s recycled and reused cement
total community development. generation
Ya Li
Ya Tung’s professional and precise
ready-mixed concrete
Ya Li rapid low carbon quake-proof
17 8 precast
4
15

Yuan Long
12 8
1
8
4
15 7 Nanhua
Local Social Care
12 14 6
Chiahui 13
11

3
Sustainable
Environmental Fu Ming (Da) Ya Tung
Education

15
Adopting sustainable
11 Sustainable 4 corporate governance, happy
Mining Mountain and safe workplace,
sustainable issues
management, sustainable
action initiative
Sustainable operation
Sustainable and development.
Development of
Circular Economy
A circular economy 5
duo-mode of substituting 9 Low Carbon Green Smart
both raw material and fuel by
recycling and regenerating
waste into resources.
Substituting the use of ore and coal. 6
6
7 12

8 12
11 9
11
8

A sustainable mining
7 3 mountain by using feelingless
explosion and safe mining
4 technique, plant restoration
and bio-diversity
Reducing the impact to
environment.

6 O R
Asia Cement CSR Highlights in 2019

Green Sustainable Cycling

Asia Cement Hualien Plant is the
first company in the world BS 8001: 2017 In terms of the energy saving
ISO 14067: 2018 ISO 14046: 2014
receiving three certificates at the circular economy
product carbon product water program, the energy saved
same time after passing the highest maturity
footprint standard footprint standard
class recognition and the power generated
verifications of its “Portland
cement” produced in 2019 and from waste heat from Hualien
duo-mode of substituting both raw Plant were able to supply the Plant greenery cumulated
material and fuel. needs of 30,000 housholds. 65.1 hectares, the
greenery area is 76.5% of
the area of mining.
The lowest vibration
value of the feelingless
explosion worldwide,
the annual average value
was 0.0469cm/sec Green house gas
(self-regulated reduced by 53,686 Tons
0.15cm/sec). of CO2e, equivalent to
build a forest of 1,086
golden phoenix trees.

Contiuned to clean and maintain beaches, windbreaks,

48% of the total newly hired in Asia Cement Hualien Plant are roadside trees, street lamps, parks, golden phoenix trees
aboriginal, cultivating local talents. along No. 9 highway and No. 3 highway for providing better
Continued the external communication, totaled 936 visitors to the mining living environment to local people. Asia Cement Hualein
mountain, 180 poeple attended the presentation regarding the safety of Plant received a Corporate Gold Award.
the mining site.
Asia Cement Service Center continued to provide diversified
Asia Cement was invited by Global Cement and Concrete Association, Shang Dong assistances, up to 1,000 cases served.
Cement Association and Chinese Institute of Mining and Metallurgical Engineers to
share the governance and plant restoration of the mining mountain as well as the
corporate social responsibility, it received warm feedback and recognitions. Asia Cement ‘s Line group account, official FB and mining area
information public website continued to provide relevant information of
the mining area.
Introduced “Mobile Art Promotion” program of French
Center Pompidou to Hualein, invited up to 100 young
students to attend aesthetics deep education. Eco-environmental education service was provided to a
total of 31,708 people.
Steady Rising – Asia Cement Eco-park Traveling Exhibitions, covered 5 counties and cities in 100 days, Asia Cement eco-park official website made available a complete and free-of-charge
up to 10,000 people in cities to experience ecological education. ecological lecturing material and totaled 200,000 viewers.

Honors in 2019 Sustainable Governance Cycling

Asia
Responsible The core business of Asia Cement has reached
Enterprise the goal of zero disaster two years in a row.
Award The first company in “Top 50 Taiwan Sustainable Corporate Award”
Taiwan cement “Corporate Sustainability Report Platimun Award”
(AREA) industry received the Asia Cement employee satisfaction survey showed that the
“Social Inclusion Award” – Asia Cement
honor of “Asia eco-environmental education program levels of various items of satisfaction were all increased.
Responsible Enterprise “Growth Through Innovation Award”- Innovating a
Award (AREA)” in two sustainable product- low carbon masonry cement.
consecutive years Asia Cement dividend yield was 7.0%.
“English Reportage Gold Award”
(2018-2019).
Great Practice
Asia Cement joined as a member of Global Cement and Concrete Association
Granted grade B for carbon disclosure project (CDP). Continued as a constituent of “Taiwan Corporate Governance 100 (GCCA), complying with Sustainability Charter and five key pillars.
The 6th assessment of corporate governance ranked Continued as a constituent of FTSE Russell “Taiwan Sustainability
top 6%-20%. Index”. Asia Cement Hualien Plant voluntarily regulated itself by 8 disclosure items
and 12 KPIs of the sustainable mining mountain, plus the self-evaluation by
Continued as a constituent of “Taiwan High Asia Cement received the “2019 Happy Enterprise Award” in three-discipline approach. The targets were 100% reached.
Compensation 100 the category of manufacturing and real-estate brokers.

ASIA CEMENT CORPORATION

CORPORATE SOCIAL RESPONSIBILITY REPORT 7
Sustainable Green Cyling

01 Sustainable Mining Mountain | 08

02 Sustainable Development of Circular Economy | 22

03 Low Carbon Green Smart Manufacturing | 30

04 Local Social Care | 48

05 Sustainable Environmental Education | 56

 Management Guideline Sustainable mining mountain indexes
Asia Cement imposed to itself a strict request by setting stringent sus-
tainable mining mountain indexes. A total of 8 disclosure items and 12 key

01
- Asia Cement’s vision of a sustainable min- sustainability performance indexes, plus three disciplines (law, external and
ing mountain is to get the balance among econ- internal disciplines) were used for the self-evaluation of the Company. The
omy, society and environment. It offers open water preservation in the mining area is enforced by the law, other request
and transparent information of the mining pro- levels are higher than the law, for the purpose of reaching the goal of sustain-
SUSTAINABLE cess, the planning of ultimate topograph and the
safety of the mining mountain to local people
ability. Asia Cement’s sustainable mining mountain indexes and three-disci-
pline self-evaluation are listed in Section 5.1 Sustainability: Sustainable min-
ing mountain disclosure items and indexes. Targets 100% reached in 2019.
MINING and invites them to participate the periodical in-
spection. In addition, it also collects the opinions
Environmental monitoring in the mining site
from the experts of mining, water draining and Mining method

MOUNTAIN geology in order to reach a balanced develop- Vibration of the explosion in the mining site Greenry restoration and area of mining
ment in terms of the mining and production, en-
vironmental eco-system and local living. Water and soil conservation in the mining site Percentage of native forest restored in the mining site

Safety monitoring in the mining site Percentage of local aboriginals hired of the total
employees

Practical actions Effective evaluation

Commitments and initiatives method
Managing to have the smallest size of min- Self-specified sustainable mining mountain Every six months the vegetation personnel
ing, timely plantation restoration by multiple indexes, 8 disclosure items and 12 sus- record the locations, time, quantity, rate of
native plants, mining by feelingless explo- tainable key performance indexes as the survival of the plants and review the prog-
sions, quite and closed-type delivery of ores example of promoting sustainable mining ress if needed.
to reduce the impact to the environment mountain.
caused by the mining operation, hence, striv- In the event of typhoon and storms, the as-
ing to ensure a net active influence to create sociated people will inspect the water and
the biodiversity. soil preservation facility of the mining area
within 24 hours and report the status to the
Reaching the common goal of sustainable For sustainable mining mountain indexes,
governing agency through the water and soil
development between Asia Cement and the a self evaluation is conducted based on 3
preservation technician.
community by the smart mining technique disciplines (law, external and internal dis-
which is environmentally safe and strictly ciplines) each year to assess the status of Each year the CSR report continues to trace
controlled, plus timely communication with reaching the goals. if the target is reached.
the local residents and contributing back to
the local.

The costs invested into the sustainable mining Hualien Plant paying tax (NT$10,000)
mountain in 2019 140,000
Asia Cement Hualien plant had paid taxes with the amount of NT$1.24 billion in which 120,000
the direct taxes (land tax, special tax for mining, mining asset royalty and the fee of
100,000
mining business right) were summed up to NT$380 million. 77,556 80,420 85,673
80,000
Worked with the governmental three-party dialogue expert team, in 2019 a budget of 82,151
60,000
NT$3,450,000 was prepared for the geographic map of the mining site and a close
geographical survey, a budget of NT$770,000 for the routine monitoring of explosion 40,000
50,964 40,223 38,788
vibration and slope stability. 20,000
27,538
A total of NT$8.71 million was invested into vegetation. -
2016 2017 2018 2019
Asia Cement Hualien Hsinchenshen mining area has always taken care of the local
communities and contributed approximately NT$25.29million. The direct tax paid by the mining site Other taxes

Note: In 2019, a portionofthe sales tax was booked in the accounts of the
8 S C headquarter, so the amount of this item was lower than that of past years.
Sustainable mining mountain in compliance with
UN Sustianable Development Goals—Highlights
Mining Monitoring and Mining Extracting cement raw material from mining mountain to provide the Realtime communication about the mining mountain
Area Safety needs of national infrastructure.
Asia Cement created a social communication zone in its official
24 hours realtime monitoring the vibration of private houses. In 2019, website, an official Facebook and a LINE group (255 people joined)
the annual average value was 0.0469cm/sec, far below the voluntarily
to timely announce mining mountain information and weather

11
SDGs11.1 demanded level of 0.15cm/sec.
condition as a reminder; it also established a Service Center to timely
Strictly maintaining water and soil conservation and slope stability. communicate and take care of local residents.The relevant monitoring
SUSTAINABLE SDGs11.a
CITIES AND
COMMUNTIES
The sustainable vision is to reach the balance among economy, society information is made available on the mining site information public
and environment. website. In the event of any doubts from the general public, Asia
Cement welcomes everyone directly visits the mining site. It is
Plantation restoration of expected to reach the co-existance and co-prosperity between Asia
In 2019, a total of 4,229 native trees were planted. Cement and the tribes through positive dialogue in order to create a
the mining mountain and
The plantation restored 1.8 hectares and totaled 65.1 hectares. win-win situation. The Company welcomes the inspection and visit
biodiversity from all walks of life.
The size of greenery was 76.5% of the total size of mining.
SDGs15.2 Nursing 80 species of native trees suitable for local growth in the nursery LINE ID
15 LIFE ON LAND
SDGs15.4
SDGs15.8
room and transplanting them to the mining mountain.
Removing invasive species to reduce the ecological impact.

Asia Cement was invited by Global Cement and Concrete Association,

A sustainable mining mountain
Shang Dong Cement Association and Chinese Institute of Mining and
becoming a global model
Metallurgical Engineers to share the governance and plant restoration
of the mining mountain as well as the corporate social responsibility, it

8 17
received warm feedback and recognitions.
Official website Asia Cement
DECENT WORK
Asia Cement created the first model of coporate disaster prevention by
PARTNERSHIPS
AND ECONOMIC
GROWTH
FOR GOALS extending the work of mining site emergency response unit to cover the
SDGs 8.8 SDGs17.16 community disaster prevention and relief, proactively maintaining the Asia Cement Asia Cement
safety of employees and residents. Hualien Plant Hsinchenshen
Corporate Mining Area Public
Communicating with and taking Union Information Web
care of local aboriginal people
Reservation for mining area visiting:
28% of the total employees of Hualien Plant are aboriginal people. Please contact Director Yu of Mining Section of Hualien Plant 03-8612101

8 DECENT WORK
AND ECONOMIC
SDGs 8.5 Up to 50% in the the subcontractors.

Up to 48% in the newly hired employees.

GROWTH

Positive change of people

Local aboriginal people were hired to form a team of greenery vegetation, they had been tought the technique of growing seedlings, the method of planting and the management of nursery
stock. Hence, the Company has not only created local job opportunities and taken care of local families, but also trained tribal people specializing in plants and helped local water and soil
conservation and greenry work. Through the involvement of the actual work, tribal people are able to deeply understand the greenery work of the mining mountain. Furthermore, they can work in
a workplace that is healthy and well organized, which enhances the value and the positive transformation of the employees.
ASIA CEMENT CORPORATION
CORPORATE SOCIAL RESPONSIBILITY REPORT 9
 Green 1.1 - Mining Monitoring and Mining Area Safety

Smart mining for environmental protection The lowest vibration value of feelingless explosion in the world
The “Inward Stepping Down Mining Method”, an internationally ad- Asia Cement Hualein Plant is pursuing feelingless explosion, it worked with GeoResourc-
vanced environmental proteciton method, is adopted by Asia Cement es Research Center of National Cheng Kung University to develop Hsinchenshen mining area
Hualien Hsinchenshen mining area for its mining. The purpose is to explosion vibration model. The explosion vibration value was simulated in advance by the
lower the impact to the landscape by viewing from the roads, to en- theory of waveform summation, a combination of both theoritical and practical expolsion de-
hance the function of water/soil preservation, flood/sediment detention. sign to effectively control the vibration and resulted the lowest vibration value in the world.
Hence, the raindrop from a sudden rainstorm can be collected to avoid National Cheng Kung University was delegated to implement explosion vibration monitoring
the water directly flushing to the downhill of the mining mountain, so that and preparing a report each quarter to submit to Bureau of Mine for approval and to provide to
the erosion caused by rain water can be reduced. In addition, all works stakeholders including local residents. It is to demonstrate the determination of Asia Cement
are done within the concaved area, the rock drop, noise and vibration to control vibrations.
can be isolated. Currently there is not any law in Taiwan to regulate the vibration value from explosion. Asia
In 1978, Asia Cement Hualien Plant worked with Japan Onoda Cement had adopted a standard 20 years ago which was 10 times more stringent than the
Company and built the first shaft rapid transit system in Taiwan’s mining US standard (1.9cm/sec) to conduct a self-management. It installed vibration measurement
industry, the extracted ore is transported in a closed fashion by silent instruments at the residential houses nearby the mining area for 24-hour realtime monitoring
rollers, an effective way to reduce noises generated by transport, to and set the self-regulated vibration value control level under 0.15 cm/sec. The explosion pa-
eliminate the spill of dust, and to save the fuel for transporting and the rameters were adjusted timely by the realtime measured value,
wearing of tires each year, reaching the goals of environmental protec- and the methods of using non-electric millisecond delay detona-
tion, energy saving and maintaining natural ecological landscape. tor, segmented explosion and reducing the volume of explosives
were adopted for the operation, which ensured that the explosion
work did not cause any impact to the living of the tribe, reaching
the goal that the residents did not feel any vibration. In 2019, the
A safe mining site and surrounding areas annual average vibration value measured was 0.0469 cm/sec,
three times far below the self-regulated 0.15cm/sec.
The government approved mining concept, the annual work plan,
and the water/soil conservation plan are required to follow during the .
extraction of the material, the governmental authority periodically invites
environmental protection, land administration, water conservation au-
thorities jointly inspecting the mining site. The advanced “Inward Step-
ping Down Mining Method” is adopted by Asia Cement mining area for its
mining. For the extraction work at the slope, the steel rope saw is used
for the cutting instead of using dynamite to avoid stone falling, a mimic
natural eco vegetation method is applied for the greenery of the area, a
strict water/soil conservation plan is executed to effectively collect rain- The value measured by
drop from sudden heavy rainstorm to control flood peak for flood deten- the vibration measure-
ment instrument can be Vibration sensors
tion, and then gradually guided into natural water system, to avoid flood transmitted via network
flushing the soil at the surface. A good water/soil conservation facility
was installed after the mining to solve the flooding problem previously Real-time explosion monitoring is installed
occurred in the tribe everytime during the heavy rain. Transported through closed conveyer in the mining area and residential houses,
the parameters of explosion design are
adjusted to a level where the vibration is
not sensed by people.

10 S C
Low potential of risk
Without any loose debris after the exvacation in the mining area with hard bedrock Assessed Items Type Responsible Org Type of
information
geological structure, no any flow of loose soil and stone mixed with rainwater. Thus, it Mining area geological map
is not easy to cause any debris flow after the exvacation. The “DF004” potential debris and the detailed geological Geological
Applied geo-techical firm
investigation investigation
flow torrents in Hsinchenshen mining area does not have any disasters occurred since
its announcement in 2002. After the site inspection and investigation, data review and LiDAR detection in the Detection of Chung Hsing Surveying
public procedure, Council of Agriculture, Executive Yuan, had updated the grade of mining area topographical Company
risk potential of DF004 from “mid” to “low” in January 16, 2019. Performed by 3
Safety assessment of Water conservation parties including
potential debris flow torrents Flow hazard torrent professional firm experts from the
government
Geological investigation
Investigation of geological Applied geo-techical
Ground resistance survey
sensitive areas firm
Geological prospecting

Periodical mining area aerial Conducted by

photography inspection Air camera Asia Cement
Periodical
Debris Flow Disaster Prevention Monitoring of environmental Noise, vibration, Solaris Environmental monitoring
Information, Water and Soil water quality, air
Conservation Bureau, Council of
quality of mining area and quality, meteorology, Engineering Co. Ltd.
Agriculture, Executive Yuan residential houses traffic flow (Certified by EPA)
Monitroing of the displacement in
the excavated / Inclinometer casing Department of Civil Periodical
non-excavated slopes monitoring and Environemnt monitoring
Monitoring of the ground water Ground water well Resources, Dahan (Available on
level in the excavated / Institute of Technology the platform)
non-excavated slopes monitoring
Strengthening local communication by using Monitoring of explosion GeoResources Research
Real-time
monitoring
scientific data as the base vibration ETNA Seismograph Center, National Cheng
Kung University
(Available on the
platform)
Although extending the expiration date of the mining right by law is not required to
Monitoring of the results of Extracted from Mining
implement site geological investigation and safety evaluation, but in order to clarify the vegetation restoration
Satellite images
Journal
doubts of the nearby villagers, under the suggestion of the geological expert team, in
the end of 2018 the Company adopted a latest Light Detection and Ranging (LIDAR) Note: Please refer to the “Asia Cement Hsinchengsheng Mining Area Information Public Website” for the
reports relating to the investigation of the mining mountain. For the IP right related contents, please view
technology and made a topographic map of the mining area with the highest resolu- the paper copies of the reports available in Asia Cement Service Center, the staffs in the service center
tion, for the use of the detailed geological investigation of the entire mining area. In will be happy to offer the touring.
2019, the Company implemented the investigation of geological map and the detailed
geology to obtain the updated data for the geological safety evaluation. In the future,
after the discussion and review by the the geological expert team, the scientific infor-
mation will be made available for bi-directional communication with the villagers to
clarify the problems and doubts.
Asia Cement Hsinchenshen mining site highly values the safety and the needs of
local residents, it proactively maintains the stability of the slope by adopting stringent
engineering method, plus implementing the investigation and evaluation of all moni-
toring and measurements by delegated professional third parties including technical
personnel, academic institutes and the institute certified by EPA to ensure the safety
Inclinometer Casing Monitoring LiDAR Topographic photography
of the mining area and to protect the life and property of the residents in Fushi village
as well as the employees and subcontractors. ASIA CEMENT CORPORATION
CORPORATE SOCIAL RESPONSIBILITY REPORT 11
 Green 1.2 Mining Mountain Vegetation Restoration and Biodiversity

The sustainable cycling of mining and the restoration in the mining mountain
The mining of cement raw material may more or less cause the temporary exposure of the ground surface. In order to quickly restore the exposed ground surface after
extraction, the Company introduces a lot of manpower and resources to fully collect the native top soil and then store them for fertilization. The native trees are transplanted
to different locations for preservation. Furthermore, tree seedlings are cultivated through cutting propogation or seeds collection. Planting slots are digged on the platform
once the extraction work is toward the final stage and the fertilized soil will be refilled, the cultivated strong seedlings are planted back by mixing various species to build
diversified types of trees to create a good ecological habitat. On the slope, the plant soil bag technique is used for quick vegetation and green coverage.

In 2019 Accumulation up to 2019

Item Content of Implementation
4,229 native trees planted A total of 65.1 hectares restored
Undertaking a work study program, the
1.8 hectares restored 76.5% of the total mined area being restored Research Institute professors of the institute collectively
Water/soil of Water and Soil planning a water and soil conservation
conservation plan, 1981 Conservation National plan for our mining site.
vegetation technique Chung Hsing Teaching and transferring the vegetation
University technique that can conserve water and
soil.
Investigating the natural forest vegetation
The Chinese Institute nearby the mining site. Recording the
types, frequency, density and superiority
of Environmental
of the plants.
Engineering
Establishing the tree species investigation
1990 data of the succession of the pioneering,
Investigating local construction and dominant phases.
limestone land plant
Asia Cement mimic natural forestation method community, Society for
Ananlyzing the physical and chemical
properties of the soil in the limestone
Selecting favorable Wildlife and area and the types of microbes in favor of
Asia Cement highly values the vegetation restoration of the mining mountain, tree species Nature the plant growth, in order to establish an
it adopts the advanced and leading vegetation greenery technique and method. ecological greenery plan.
Since 1980, it started to hire experts and scholars studying various vegetation A total of more than 400 potential plant species were found.
restoration techniques, selecting the native tree species for vegetation greenery, Selected more than 80 native tree species suitable for local growth for the
nursing and hardening seedlings, and improving soil dressing, later planting, fer- vegeation restoration, and a total of 46 frequenctly used species were approved
tilizing, caring and irrigating. The goal was to improve the environment for plant in the water and soil conservation plan.
growing, moving toward the climax succession, inducing the plants to speed the Constructed a professional nursery house and nurtured more than 80
building of a favorable and stable vegetation community, so the mining mountain species of tree seedlings (40,000 tree seedlings can be nurtured per year.)
was able to recover its natural ecology as soon as possible. The forming process An outdoor hardening field was built in the mining mountain for nurturing
of the natural plant ecology is mostly composed of three succession phases seedlings 1.5 to 2 years and transplanted into the mining mountain once the
trees were above 1.5m height.
including pioneering phase, construction phase and stability dominant phase, so Implementing A soil dressing fertilizing field was built in the mining mountain, fertilizer was filled
that the vegetation greenery of the mining area was applying the mimic natural greenery restoration into green trench, long lasting organic fertilizer was applied once the seedlings
plant ecological succession concept to shorten the time of succession. Asia were planted to ensure the fertility of the soil for the growth of the plants.
Cement has been implementing this roadmap up to 40 years now, the results of Unique plant soil bags were used for quick vegetation and green coverage,
the survival rate of the seedlings for restoration was over 85%.
its mining mountain vegetation restoration have received high recognition from
Australia, Japana dn Korea. The study had proved that native forests could be restored after 18 years.

12 S C
Vegetation restoration and biodiversity Study of native forest restoration
Asia Cement highly values the bio-diversity in the mining area, it committed to The study showed that the height of trees can reach to 10m after 10 years, the
the smallest exvacation area, realtime vegetation restoration by using diversified naked residual wall resulted from the excavation can be covered. The overall structure
native dominant tree species, mining by feelingless explosion, silent and closed of the forest form is still maintained after many years of typhoons, showing that the
type of conveyer to deliver ores, in order to reduce the impact to the environment vegetation built by this forestation method can sustain strong wind, offering the function
caused by the mining operation and endeavor to ensure a positive influence to the of disaster prevention.
bio-diversity. Working with National Dong Hua University to perform the analysis of Normalized
Difference Vegetation Index (NDVI) by using Quick Bird satellite images with the res-
Asia Cement undertook an ecological survey of the plants in the entire olution of 1m. The study shows that 18 years after the vegetation the mining area can
Hsinchengsheng mining area from 2016 to 2018 and conducted an analysis of reach the standard of native forest.
the results in 2019, in order to understand the status of the plant diversity in the Note: NDVI Index indicates the information of vitality and productivity of plant growing and eco-system, the
mining area. A total of 131 families, 346 genuses and 480 species were recorded higher and thicker of the plants, the higher the index.
including 307 native species, 50 Taiwan special species, 58 naturalized species, Duration of
planting
NDVI
38 nurtured species and 27 invasive species, among which 74% were the native
and Taiwan special species and 5.6% were the invasive species. 5years 0.30
An investigation conducted by Taroko National Park neaby the mining area
disclosed that there were 32 invasive plants out of 159 alien plants in the park, 10years 0.37
indicating that invasive plants were a problem in Hualien region back in early days. 15years 0.60
Asia Cement endeavored for biodiversity in the mining area, it selected local native
plants as the tree species nurtured for the vegetation restoration after the mining 18years 0.68
and committed the diversification of the restoration. In addition to attain the green-
ery effect, the vegetation restoration is also for ecological consideration. Through Native forest 0.68
Using elevation to devide the regions of NDVI Analysis
the hybrid dense planting of the dominant tree species, the diversified forest form vegetation restoration in each period.
was created. When the staffs found any invasice species in the mining area, they
would take proper measures to clear these species in order to maintain the local
native species and to reduce the ecological impact caused by the invasive species.
Note: The distribution of alien plants in Taroko National Park, the migration mechanism and the evaluation of
impact. Taroko National Park Headquarters, Construction and Planning Agency, Ministry of Interior, 2005.

58 188
species of shrub species of herbs

159 75
species of trees species of lianas

ASIA CEMENT CORPORATION

CORPORATE SOCIAL RESPONSIBILITY REPORT 13
 Professional nursery house for Professional nursery house for Outdoor hardening field
the mining mountain the mining mountain

Green 1.3
Special Column of Local People Interviews
A story of a positive transformation –
An interview with Dau-sheng Lee, a local employee
Professional nursery house for Small-leaved Distylium Ehretia Acuminata
the mining mountain

Mr. Dau-sheng Lee, originally a subcontractor later joined He expressed that “some people say that tree-planting is a us. Recently Taroko National Park came to request for some
Asia Cement, talked about about the experiences of nurturing kind of good merit, I only think what our original people want is tree seedlings, the most special one is small-leaved distylium,
tree seedlings, full of smiles on his face. In the mining mountain to restore our own mountain. After the tree seedlings are re- an unique species in our eastern limestone area, visitors are
for 3 years now, he has nurtured more than 10 thousand tree moved from the nursery house to the outdoor hardening field, not able to find these local tree species in Buluowan Recreation
seedlings each year. “I was a truck driver in the mining moun- they are enduring the impact of winds and rains. Once growing Area, we have them! A while ago, a local association held an
tain before, 2 years now in this nursery house. I studied civil up to 1.5m after 1.5 to 2 years, they are transpanted to the mining event in our eco-park and invited residents over. They taught
engineering in school which was nothing to do with flowers and mountain. Each native tree seedling qualified to be planted to the them the cutting propogation and the nurturing of tree seedlings,
plants. It was very difficult in the beginning when involving in the mountain is a result of our hard work!” an event for everyone to interact and get closer, which further
vegetation restoration work, I needed to learn a lot of things. Un- The good way of mining is to do the vegetation restoration bound them together!”
der the guidance of the mentor, I really learned a lot. Even now of the area after removing the ore under a safe condition, plus
the mentor still comes to help me. Nurturing tree seedlings from providing good job opportunities to local residents. “I believe that
small to big, we need to take care of many details timely, such Asia Cement has a very good policy by hiring local aboriginal
as trimming, expelling parasite, etc. Although it is hard working residents first. Today we have a number of older employees, the
everyday, but we have very good mood from getting a lot of phy- three that I am familiar with are 50s and 60s, they are either ill or
toncide momnetarily!” said he. difficult to walk, no one could take care of their family before. Our
Due to climate changes, the weather is different and more un- company provided the job opportunities to them, they don’t need
stable than in the past, thus, the nurturing work is facing various to worry about the living. Every day we work happily and having
challenges. Sometimes it is too hot or too wet, the tree seeds are good time together, such a life is so joyful.”
not able to grow, hence, the way of nurturing is required to adjust. Asia Cement also shares and contributes the nursery re-
He said that “we need to increase the survival rate of the tree seed- sources and results to the local community. “Some seedlings are
lings while in the nursery house, carefully trimming and cutting the hard to find nowadays, if tribal people come to request for some Vegetation greenery Plant soil bags
brenches in the beginning. The survival rate is our job pferformace of the seedlings they need, we will help to nurture or offer to them
as well. Whenever there is a tree seedling that is not smoothly if we have in the nusery house. Some of our tribal people want Nursury house provides tree seedlings to local residents and
growing, we will treat it as our child and trying to do our best to save to build forest on their aboriginal reservation land, some of them institutes for lecturing, farming field greenery, forestation, bind-
it. If it is possible to grow, we will try to maintain the survival rate want to plant trees at home or communityfor greenery. In addi- ing relationships with people. In 2019, a toal of 262 seedlings
above 80 - 90%. For the tree seedlings that are indeed not suitable tion to tribal people, some public institutes or local associations for water/soil conservation were given to them including ehretia
to grow, we will remove them. Sometimes we will do experiments may come to apply for getting tree seedlings for their needs, we acuminata, camphor tree, red nanmu. A total of 36 tree species
by changing soil layers, fertilizer, or even the tree species.” provide these native tree species, or they will interchange with including 732 seedllings were given from 2017 to 2019.

14 S C
A story of a positive transformation –
An interview with Mr. Shun-lin Yu,
a supervisor in the mining site.

Face-to-face communication with the In 2018, on behalf of Asia Cement, Mr. Shun-lin Yu received the “Asia
households in the tribe Responsible Enterprise Award- Green Leadership”

Mr. Shun-lin Yu, the supervisor of Mining Section in Asia Cement which were then checked and classified into different topics, such as measuring of ground resistance, air LiDAR topographical detection,
Hualien Plant, is very familir with all functions and works in Hsinchen- the safety of the mining mountain, water drainage, and dust, noise, ground LiDAR detection, safety evaluation of potential debris flow
shen mining site from explosive mining, environmental monitoring, vibrations caused by the mining operation. Hence, Asia Cement torrents and survey of geological sensitive areas. These were in-
water/soil conservation to vegetation restoration, and strictly imple- started to adopt various controlling measures based on the topics vestigated and analyzed by the fair-minded third-party to check the
menting each step and practically communicating with all stakehold- and issues. harzards of weak surface structure, cracks and potential sliding. The
ers. Later, the government authority conducted a panel discussion, scientific method is used for the investigation and evaluation to solve
The data of vibration caused by explosions speaks by itself! Asis Asia Cement invited a fair-minded third-party to attend and catego- the doubts from the experts and local residents. “Asia Cement be-
Cement scientifically installed a system monitoring the vibration. rize the issues into three topics. The difficult professional terminolo- lieved that the slope was stable and safe after the mining, but not
Since the explosions are all scheduled at the same time point, so gies and words were translated into easy-to-be-understood language agreed by the residents, both sides are subjective. Asia Cement had
that some vibrations sensed by residents are often investigated and during the communication and discussion, all issues were clarified the empathy and put itself in the shoes of the tribe, it communicated
found causing by earthquakes, sometimes a loud abnormal sound is and assigned to the respective accountability unit (Approximately with the residents by scientific and opened information to eliminate
heard and then found from jet engines of airplanes after the inves- 60% belong to Asia Cement, 30% belong to Township Office, 10% the worry of them, plus undertaking the risk management. In 2019,
tigation. “Asia Cement had tried many ways of communication with belong to Directorate General of Highways). Through this rational Asia Cement conducted a mid-Fushi emergency response drill, in the
residents, but found that sometimes not effective at all. Hence, it and inventory-taking mechanism and the procedure of adopting mea- event that the pre-warning value is reached in the future, the Compa-
continuously tried to use different ways by trial and error, and steadily sures to solve issues, Asia Cement was able to steaily converge and ny will take a series of treatment measures.”
found an effective way which was extended to others later.” said he. solve the issues. Mr. Yu believed that he and all staffs should know every work
In order to enhance the communication with residents, the Com- He stated that “only through the effective communication, can in the mining mountain, so that everyone would know where his/her
pany not only monitors the vibration at the houses nearby the mining then the doubts of everyone be really solved.” “We used to consult role is positioned. Currently, the operation of eco-park environmen-
mountain, but also extends to houses at far. He said that “For the with experts and scholars about the social communication. The pur- tal education and the contribution to the community are funded by
residential houses in the nearby tribe, Asia Cement worked with a pose of social communication is not to reach to a status where no- the revenue of Asia Cement. It is expeted that the community re-
fair-minded third-party GeoResources Research Center of National body has any opinion anymore and everyone keeps silent. It takes construction can be continuously realized in 5 aspects of “people,
Cheng Kung University to install a vibration monitoring and measur- on-going communication and the significance is the process, not the culture, land, landscape and industry”, thus, Hsinchen township of
ing station. For the residents who live farer, any vibrations reported to result. Asia Cement opens the mining mountain to media, associa- Hualien can be vitalized.
Asia Cement Service Center, Asia Cement will send a mobile mea- tions and institutes for their visits, it also conducts presentations and
surement instrument directly to the house to measure the vibration panel discussions at many places.”
data and investigate the status of each explosion along with the vi- “In addition to the opinions from the local residents, the stake-
bration data based on the feeling expressed by the residents during holders including Environmental groups also have some misunder-
the interview to adjust and modify the arrangement of the explosion.” standing to us. Hence, starting from 2018, we make ourselves entire-
In the beginning, Asia Cement was communicating with the ly open and transparent, and timely make available the report and
chiefs of villages, boroughs and neighborhoods, somehow the mes- monitoring/measuring data on Asia Cement Hsinchenshen Mining
sages were not able to get across to each household. Later, the Area Public Information Website for the inspection by the public. In
Company went to the tribes to do presentations. In the beginning it case of any Dispute, or any content not easy to understand, we will
was found that still some residents had doubts to Asia Cement and invite three parties and experts to disucss together.”
did not attend the presentations. In 2018, there was a three-party Asia Cement works with government three-party meeting expert
meeting between the tribe, government authority and Asia Cement, team to conduct a series of mining site detail investigations includ-
several hundred questions and doubts from everyone were listed, ing making geological map and detailed geological investigation, Conducting mining mountain briefings in the Service Center

ASIA CEMENT CORPORATION

CORPORATE SOCIAL RESPONSIBILITY REPORT 15
 General Manager Quin-yen Lee delivered a speech in the annual conference of Chief Plant Manager Ji-pen Chang gave a speech in The Third Global Section Head Wei-chen Wu gave a speech in The Third Technology
Chinese Institute of Mining and Metallurgical Engineers and received a memorial Cement Conference and The Second Global Climate Change Forum Interchange held by Shang Dong Cement Association.
medal. held by Global Cement and Concrete Association.

Green 1.4 Global Model of Sustainable Mining Mountain

Domestic professional technology lineage International recognition
Asia Cement Hsinchenshen Mining Area has the best explosion technique in Taiwan. The achievement of vegetation restoration done by Asia Cement Hsinchenshen mining
For many years the Company has provided lecturers every year to Bureau of Mine, Ministry area has been highly recognized as a superior model internationally. The green vegetation
of Economic Affairs, to train the explosive material control people and explosion specialists and water/soil preservation done by the mining mountain have repeatly received the honor
in the use, storage, delivery and safety management of explosive material, plus the pro- as a model mining area. The way of vegetation restoration is rarely seen internationally, even
fessional knowledge of explosion construction design and vibration control. The Company Japan Limestone Association and Resource Material Society had visited the site twice already.
also opened Hsinchenshen mining area as the training site to demonstrate the safety and In 2019, many associations relating to cement industry came to Taiwan visiting Hsinchensh-
technique of explosion operation for the reference of the companies in the industry and the en mining site, they highly recognized Asia Cement’s results of vegetation restoration. Asia
explosion specialists. Cement was invited to attend The Third Global Cement Conference and The Second Global
The explosion technique and the vegetation work done by Asia Cement Hsinchenshen Climate Change Forum held by Global Cement and Concrete Association, and The Third Tech-
mining area have been highly recognized by domestic and overseas institutes. For many nology Interchange held by Shang Dong Cement Association, to share “the governance of
years it has been a mining area to demonstrate the green vegetation and safety, and being mining mountain and vegetation restoration” which was highly recognized. The Company had
invited many times to share the professional experiences of vegetation and water/soil pres- created a model in the global cement industry, as a result, WCA planned to conduct a “green
ervation as the reference for government agencies and companies in the industry. mining mountain forum and site visit” in the beginning of 2020, due to the coronavirus pandem-
ic, the plan was on hold and would be rescheduled to resume in a proper time in the future.
Carrying the mission of “building a green homeland”, Asia Cement has been aggres-
sively implementing a program in connection to the sustainability of the mining mountain
for many years and received the recognitions from local and foreign professional groups.
In 2018, its “Cement Plant/ Mine Green Sustainability Action Plan” received the honor of
“Green Leadership Category” of “Asia Responsible Enterprise Award (AREA)” presented by
Enterprise Asia. The first company in the cement industry of Taiwan received this honor. In
2019, its “Deep Planting of the Seeds of Sustainable Hope -Asia Cement Ecological Envi-
ronment Education” has received the honor of “Green Leadership” again, the first company
in the cement industry of Taiwan receiving this award two years in a row.

In 2019, Asia Cement

received the “Green
Leadership Category”
of “Asia Responsible
Enterprise Award
(AREA)”

Mining Association Jiangsu paid a visit Department of Natural Resources of Hebei Kuancheng County, Hebei Province paid a
16 S C Province paid a visit visit
Sustainable Mining Mountain Of Model Cases At Domestic Sustainable
Mining
Blasting Slope Stablization Vegetation International
Technique and Measurement Greenery recognition
And Foreign Over The Years Mountain

Chinese Institute of
Mining and Metallurgical
Bureau of Mine Engineers
Workshop for Supervision and General Manager Quin-yen Lee
Inspection of Ocean Mining Areas in delivered a keynote speech in the
East Sea and South Sea. annual conference of Chinese
Institute of Mining and Metallurgical
Engineers with the title of “Corporate
National Dong Hwa Social Responsibility of Asia Cement”
University
Forum for Mining Industry Aboriginal Study Club of Chinese Institute of Civil
Bureau of Mine Sustainable Operation in National Taiwan Normal & Hydraulic Engineering
Eastern Taiwan Forum on
Explosive controlling staff, Promoting CSR via
University Cement Production and Environment-
trainer of explosion Environemntal Education. Offering the lecture of “co-existence Hsinchenshen mining site vegetation
and prosperity between Hsincheng- greenery method, 2019, Civil &
professional staffs. The Hydraulic Engineering, Vol. 46, 5th
National Cheng Kung sheng mining area and Bsngan tribe”
Publication
mining area is available for University
the on-site training. Department of Electrical
Lecturing “Explosives and Blasting Engineering, National Yu-Shan Theological
Engineering” course. College and Seminary
Donghwa University
Offering the lecture of “introducing Offering the lecture of “co-existence
Asia Cement Hualien Plant and and prosperity between
Taiwan Mining Journal Hsinchengsheng mining area and
sharing the work experience”
The application of BYJR-500 model Bsngan tribe”
on-site mixed emulsion explosive National Hualien Girls’
charge machine in Taiwan
Senior High School Global Cement and
In the aboriginal parents and children Concrete Association
National Association discussion meeting offering the The Third Global Cement Conference
of Japan Limestone lecture of “analysis of aboriginal and The Second Global Climate
Mining Industry and multi-entrance strategy” Change Forum “The governance of
mining mountain and vegetation
Seminar of Resources Japan Resource and restoration”, being highly recognized.
and Enviornment Material Society Central Geological
Application of Remote Sensing
National Association of Japan Survey, R.O.C. Shang Dong Cement
Limestone Mining Industry and
on Quarry Restoration Japan Resource and Material Selected by Geological Quarterly Association
Monitoring. - A Case Study of Society visited again to Asia Journal (Vol. 37, No. 3) as a global Speech in the Technology Interchange
Shin-Chen San Quarry, Asia Bureau of Mine Cement’s mining area in December
example of mining mountains – Asia
Assembly “Keynote of the governance
Cement Corporation. and highly praised to the greenery of mining mountain and vegetation
Forum for Vegetation Restoration and slope stabilization of the mining Cement Hualien Plant Hsincheng- restoration”, being highly recognized.
Method Adopted in Hualien Plant mountain. They believed that these sheng mining area. eing highly recognized.
Hsinchengsheng Mining Area of were good references for them.
Australia Government Chinese Institute of Various
Asia Cement. Korea Association of
Australia Government Mountain Forest Mining and Metallurgical associations relating
published a book entitled Taiwan Law Journal During the visit in June, Korea Engineers to cement indusrty
“The Sustainable Association of Mountain Forest, Clay Asia Cement received “2018 Mining Association Jiangsu,
APEC Development of Mining
Study of using satellite image to and Stone expressed that they were Department of Natural Resources of
monitor vegetation restoration on very confident to the restoration of
Technical Medal” presented by
Korean’s Industry” and included 60 Hebei Province and Shang Dong
residual wall of Asia Cement their domestic mining areas. Chinese Institute of Mining and
presentation in mining areas. Asia Cement Province Cement Association visited
Hsinchengsheng mining area. However, after visiting Asia Cement, Metallurgical Engineers . Hsinchenshen mining site and highly
the APEC annual Shin Cheng Mountain mining Korean delegates indicated that they recognized the results of Asia
conference shared the area was one of the 18 admired very much to the results, and Cement’s vegetation restoration.
sustainable operation mining areas specifically surprised about the performance,
model of Asia Cement reported in details, also the professionalism and mindful effort of
Taiwan Mining Journal greenery achieved by Asia Cement Enterprise Asia AREA Enterprise Asia AREA
Shin Cheng Mountain only “cement raw material”
mining area, much better than that of Asia Responsible Enterprise Asia Responsible Enterprise Award -
mining area. mining area. It was listed as a National Dong Hwa The application of Material theirs. They highly recognized the Award - Asia Cement received Asia Cement received the honor of
global model of sustainability Inventory Measurement Using
in terms of plant restoration,
University Close-Range Photogrammetry
greenery, water and soil preservation,
environmental protection done by
the honor of “Green Leadership Category”
“Deep Planting of the Seeds of
environment maintenance, Seminar of Promoting Mining and Terrestrial 3D Laser Asia Cement, and worthwhile to bring “Green Leadership Category” Sustainable Hope -Asia Cement
innovative mining method. Industry Enviornmental Education Scannering the knowledge back to Korea for “Cement Plant/ Mine Green Ecological Environment Education”
further study. Sustainability Action Plan”

Year 2010 2011 2015 2016 2017 2018 2019

ASIA CEMENT CORPORATION
CORPORATE SOCIAL RESPONSIBILITY REPORT 17
 600
Planning of mining and vegetation restoration 565
557
550
The advanced and environmental-friendly “Inward Stepping Down Mining Method” is adopted by
Asia Cement Hsinchenshen mining area for its mining. The inward concaved ground can provide the 496
500 487
function of a temporary sand sediment basin and reduce the impact to the landscape viewed from
474
the road. In 2019, the total volume of mining was 4.87 million tons. The vegetation greenery work
will be performed once the mining reaches the final wall, the area of greenery will be adjusted in ac- 450
cordance with the progress of the mining. A total of 65.1 hectares of greenery area were cumulated
up to 2019, 76.5% of the total mining area.
400
2015 2016 2017 2018 2019
Sustainability planning of the mining mountain The Tonnage Excavated Over The Years (10 Thousand Tons)
Currently, the plan of Asia Cement is to combine the sustainable mining mountain, the native
botanic garden, the butterfly eco-park and the surrounding communities as well as the national 70 79%
61.3 63.3 65.1
park to promote environmental education for the purpose of fulfilling life time learning, to assist the 58.5
60 76.5% 77%
development of local traditional skills, to increase the job opportunites, to care the disadvantaged 74.2%
and facililate after-school tutoring to children, and to realize a safe mining area and a healthy 50 73.6% 75%
72.7%
workplace in five aspects including people, culture, land, landscape and industry, a community 40 73%
reconstruction. 30 71%
The land in the area after the completion of the mining will be 22 hectares, it can be available for 22 22 22 20
20 69%
reuse. Since the land in the mining area was leased to Asia Cement by the government authority,
Asia Cement does not have the ownership, hence, it is suggested to refer to foreign successful cases, 10 67%
under the condition of complying to laws and regulations to consider the options of converting it into 0 65%
a native botanic garden, a geographic museum, an eco-lake, an aboriginal cultural hall, or leasure 2016 2017 2018 2019
facilites, the concept of multiple use. This mining area land re-activation plan is solely a suggested
blueprint, the actual construction and use of it will be planned and designed by the government in the Mining operation (Hectares) Cumulated greenery area (Hectares)
future. Hsinchenshen mining area will be returned to the nature in the future and Asia Cement will Percentage of greenery area (%)
certainly do a good planning in order to restore a beautiful mountain and forest.
Mining and Greenery Situation Over The Years

Mining inward and stepping down steadily

Completing restoration
Exvacating to the final wall
Keeping outer green and planting immediately
area not to exvacate Ultimately 22 hectares
flat land activated and
reused

Diagram of Inward Stepping Down Mining Method

18 S C
 Engaging and communicating with the local community nearby the mining mountain
Asia Cement always values the right and interests of aboriginal tribes and aggressively communicating and engaging
with local communities to strengthening the relationship with them. It has gained a lot of positive responses from the
villagers:
A public website of Asia Cement Hsinchengsheng mining area information was installed to make available
Asia Cement Hsinchenshen
real-time information including the safety of mining area, data from monitoring, pictures of real-time water Mining Site Information
Important Message
draining system from cameras and affairs concerned by local people. Public Website The huge sound of explosion
on Dec. 25 was not from Asia
Routinely conducting “mining safety” seminar in every neighborhood of Fushi village and face to face with Cement #1 at all
• Significant Information
the local people describing the safety issue of the mining area and the vegetation work. In 2019, a total of 2 @2019/12/26 # Friendly to neighbors
• Realtime Monitoring Regarding the huge sound of
seminars with 180 people attended. explosion heard by local residents
• Monitored Data of Hsinchen, Shulin, Beipu and
Opening the mining area for visiting to enhance the communication with outside. Periodially inviting local peo- Chiawan areas at 3:30pm
ple and others to visit the mining mountain in order to build the mutual trust, to report water/soil preservation • Friendly to neighbors yesterday (Dec. 25), the external
hearsay said that it was from Asia
• Mining Site Safety Report Cement mining area, which was
work, vegetation greenery and safety measures taken by the mining area. The doubts are eliminated through absolutely not true. The operation
site visiting and asking questions. In 2019, a total of 26 times and 936 people visited the mining mountain. • Information Inquiry of Hsinchenshen mining site on
that day was normal, the time of
routine explosion was from 4:30pm
Routinely assigning staffs to attend village, chief of neighborhood and tribe affair meetings to share the safety • Contact Asia Cement to 4:45pm,and the explosion was
under the normal standard value
of mining area, the measure of preventing disasters and community charitable events. Feedbacking and track- • Management shown by the monitored data.
ing handling of the items concerned by local people. Please do not misunderstand or
transmit false information.
Asia Cement service center was established in Fushi village to provide real-time information of the mining area,
to accept the applications of electrical bill subsidy, house repair, emergency assistance and community service,
a channel of bidirectional communication with villagers.
Through Line Group and Facbook to timely provide mining mountain related information and clarify untrue
information to ensure delivering the correct information of Hsinchenshen mining mountain to the general public.

2019.04.18 Thursday 14:40

Asia Cement Asia Cement Typhoon Bailu had brought in storm and strong
2019/7/16 PM1:34 2019/1/4 PM3:16 The employees and facilities of Asia Cement
Hualien Plant and Hsinchenshen mining site wind, is everyone OK?
were all safe without damage or injury. During the hitting of typhoon Bailu, the employees
In compliance with the regulations stipulated in current Regarding some friend in the Self-help Association released a of Asia Cement Hualien Plant wouldn’t dare to
video clip entitled “ A normal day in the mining area” on Jan. 4, A picture showing the smoke coming from
Mining Act and the resolutions of inter-ministry meeting, Provincial Highway 8 was getting around on the relax, made the proper preparation by adopting
Asia Cement filed for the extension of mining rights. It was 2019, there was misunderstanding in the film. In fact, the prevention measures in the Plant area, closely
explosion was not relating to the mining work at all, on the internet. It was resulted from the operation of
all in compliance with laws and regulations. monitored the mining mountain and intensively

29 471
contrary, it was an action taken under the suggestion of the the dust collection facility in the Plant at the time

72
Taipei High Administrative Court made a judgement of first of earthquake, the dust came out for a short checked the surrounding area. In addition, along
people people instance on the 11th to revoke the appeal decision and experts for the purpose of maintaining the safety and the
period of time. The dust only contained of the with the town representative, chief of the village
people original action against Asia Cement’s mining right residents, absolutely not “ a normal day in the mining aera”. Asia
raw material of cement and the problem was and the section head of eastern office, Bureau of
Private institute Academic group Cement
extension case, which resulted worry and unease of Cement specifically states the following:
1.The film was shot at the un-extracted southern side of solved in a very short time. Mine, they inspected the water draining condition
employees in Hualien Plant, they worried the impact to Central Weather Bureau reminded that an of the mining area. The staffs of Asia Cement
industry their right of work and family living. Hsinchenshen mining site where the surface stones and soil
rolled down on Nov. 24, 2018. aftershock with the magnitude above 5 might Service Center closely watched the conditions of
Today the union of Asia Cement Hualien Plant stands out possibly occur within a week. The villagers the tribe to ensure that all residents were safe.
to guard the right of work by supporting the Company to 2. After the incident, on Dec. 7, 2018, Mining Bureau and many Luckily everyone was safe and not suffered from
water/ soil conservation geological experts went to the site to should beware of it and tried to stay safe.
insist on filing for petition by law and hope that government any damage caused by the typhoon….more
shall stand firmly on the original position to file the petition. inspect and found that there were many large stones which might
have the risk of rolling down and jeopardizing the safety of
people. On Dec. 15, 2018, professor Ching-wei Lin, the
geological expert and the convener of three-party meeting for
safety living conducted a geological safety briefing in the tribe to
explain the fact and suggested Asia Cement to handle by way of
engineering work….more

495 people 49 people

Government institute
Local associations,
churchs, promotion Linking to the press release
associations of extending mining right

ASIA CEMENT CORPORATION

CORPORATE SOCIAL RESPONSIBILITY REPORT 19
 Green 1.5 Caring and Communicating with Local
Aboriginal People
Asia Cement Service Center Providing job opportunity
Asia Cement Service Asia Cement Hualien Plant provided job opportunities to local aboriginal people,
Center was established in a most direct way to take care of aboriginal people. In 2019, aboriginal people took
June of 2018.It provides lo- 28% of the total employees in Hualien Plant (the percentage in the subcontractors is
cal aboriginal residents nu- even as high as 50%), and 48% in the new employees. The percentage of local people
merous assistances includ- being hired is up to 96%. The Company takes actions to care local aboriginal people
ing momentarily responding and communities by hiring them to cultivate the talents.
to mining mountain safety
concerns, offerring job op- local employees Aboriginal People
portunities, disaster relief Type Total
and house repairing, sub-
Number Number
sidizing wedding ceremo-
Employee 306 293 96% 86 28%
nies, funerals and electricity
bills, as well as visiting local
households. Subcontractor 898 268 30% 446 50%

Diversified assistance
provided by Service Center 2018 2019 Total 1,204 561 47% 532 44%
Donating material (case) 29 35 Note 1: The definition of local region is the area within the jurisdiction of Hualien County.
Emergency relief and assistance (case) 50 170 Note 2: Asia Cement installed a contractor and employee information management system to manage the
occupational safety and health of all workers in the workplace controlled by the Company. The data of the
House repairing (household) 121 34 aboriginal employees hired by the contractors is complied and computed by this system.

Electrical bill subsidy to households

nearby the mining area (household) 369 389
Home visits (case) 119 391
30 48% 46% 48% 50%
Weddings and funerals (case) 8 40
25 40%
Maintaining mountain pring water pipelines Continuing to maintain Continuing to maintain
(houshold) 42 households 42 households 20 13 12
11 30%
Helping to clean water drainage (case) Nameless stream,
Nameless stream baseball field 15
20%
Ordinary new employees 10
Valuing the local employees The new employees are 5
14 14 12 10%
aboriginal people
The new employees are 0 0%
There are 29 high-ranking supervisors in Asia Cement Hualien Plant, among aboriginal people rate(%)
which 28are from Hualien, 97% of the total. The assistant deputy plant manager (the 2017 2018 2019
third highest position in the plant) is an aboriginal person showing that Asia Cement
values very much local employees. Hualien plant new employees
Note: The high-ranking supervisor is defined to be the job grade over 11.

20 S C
 New Taiwan Dollar (10K/year)
Item
2015 2016 2017 2018 2019
Keeping good relationship with neighbors
Inspecting after typhoon by the
– joining with the community to have a
sustainable development
449 491 468 575 665
representavie of the township, the
chief of village and the section House repairing 134 112 230 655 151
head of Eastern District Office,
Bureau of Mine. Electrical bill subsidy to households nearby 0 0 121 266 327
the mining area
Promoting education in the tribe 17 29 30 26 97
Emergency relief and assistance 0 0 0 25 85
Asia Cement Hualien Hsinchenshen min- Other community interactions and charities 235 109 104 111 35
ing area takes good care of local residents.
The contributions to local community are Total 834 741 954 1,658 1,360
listed as follows, for other local social care
Contribution to local community please refer to Chapter 4 of Green Sustain- Note 1: Subsidizing elerctical bills since 2017, providing emergency assistance since 2018.
Note 2: “Other community interactions and charities”including helping the greenery of the community by
able Cycling- Sustainable Social Care.
applying the expertise of eco-greenery (labor and tree seedlings nurturing costs not included), satisfying
the needs of the community by applying the engineering expertise, taking the ownership of cleaning the
water channel of “nameless stream”.

A safe mining mountain

Bureau of Mine, Fire Dept of Fushi Police
MOEA Hualien County Station
After the 2018 earthquake in Hualien, all employees of Asia Cement Hualien Plant were Siou Lin Fushi Village
Team of Experts
split into three groups to closely check the status of the mining mountain, plant facility and res- Township Office Office
idents in the tribe. It was confirmed that after severval inspections, the mining mountain was Self-rescue
Bsngan Meeting
Asia Cement
Association Hualien Plant
safe, the residual wall and slope were all normal and stable. In 2019, every time after the hit
of a typhoon or an earthquake, the staffs immediately inspected the mining mountain together
with the local residents to reduce the worry of them.
Asia Cement strictly follows the rules and regulations of water/soil conservation technique
and the mining site excavation to restore the vegetation and conserve the water/soil of the
mining site. Ever since the mining operation from 1978 till present, standing through numerous
typhoons and earthquakes, the mining area does not have any collapse or landslide.

Asia Cement Mid-Fushi (Ayu) emergency response drill

Asia Cement created the first model of corporate
disaster prevention by extending the work of mining
site emergency response unit to cover the communi-
ty disaster prevention and relief. In June of 2018, the
work team meeting suggested to conduct an emer-
gency response drill, after numerous meetings and
discussions with the government authorities and local
residents, a drill of “the evacuation and disaster emer-
gency response covering the area of mid-Fushi tribe
outside of Asia Cement Hisnchenshen mining area”
Visiting by the chief of village, chairman of the tribe and senior was conducted in June of 2019 to actively maintain
people after the earthquake. the safety of the employees and the residents.
Results of emergency response drill
ASIA CEMENT CORPORATION
CORPORATE SOCIAL RESPONSIBILITY REPORT 21
 Management Guideline
02 - The rotary kiln used in the man- Asia Cement built a complete cir- and economy(G) can be obtained by
SUSTAINABLE ufacturing process of cement is fea-
tured with very high temperature
cular economy system through the
composition of the “arterial industry”
reducing the consumption of natural
resources and green house gas emis-
kilning, which can not only effectively and the “veinous industry”, convert- sion, and creating job opportunity.
DEVELOPMENT minimize waste, but also converting it ing the original cradle-to-grave way
Asia Cement is determined to drive
into alternative raw material and fuel of treating waste to a grave-to-cradle
OF CIRCULAR to reduce the use of natural raw ma-
terial and fuel during the process ce-
endless succession way of resource
cycling model. Through the recycle
circular economy in order to reduce the
consumption of resources and the green
ment production, an important driver and reuse, waste is converted into house gas emission, and to create new
ECONOMY of circular economy. resources, the sustainable benefits value for the cement industry.
to the environment (E), society(S)

Practical actions and

Goals and targets initiatives Evaluation method
The efficiency of resources utilization Asia Cement Hualien Plant is planned Through BS 8001:2017 to certify
is the core of Asia Cement’s operation to add the types of alternative raw ma- the highest maturity level of circular
strategy. We take the responsibility to terial and fuel in. This action includes economy operation model.
effectively promote the successive use discussing the types of waste possi- Through the report of CSR to
of recycled raw material and reused bly treated, filing to the environmental continue tracing the level of goal
fuel to solve for the government and protection government authority for achievement.
many industries the difficulty of treating the permit and modifying the on-site
business waste by converting it into the equipment.
effective resource during the process
of cement production, to create new
value for the cement industry.

Policy Management system

The Asia Cement is developed toward Asia Cement has standardized the control operation of circular economy and
sustainable environment. It adopts a drafted “regulations for obtaining and reusing raw material and fuel in circular
principle of “striving for waste reduction economy” which was approved by general manager, and the “operation proce-
and resource reuse: realizing waste dures of managing circular economy” which was approved by the chief plant
reduction and reuse of energy and manager, as the basis of converting into circular economy.
waste through the special features of Asia Cement Hualien Plant has passed the certification of BS 8001 2017 and
cement manufacturing process” to ful- received the recognition of the highest maturity level of the circular economy
fill the duty of environmental protection. model. Following 6 principles of BS 8001, the Company is on the way toward
circular economy.

22 S C
Circular Economy Sustainble Development in compliance with
UN Sustianable Development Goals - Highlights

Sustainable cycling of resources in cement Sustainable benefit of circular economy

manufacturing process

Recycling and reusing waste as raw material and fuel, an environ-

6
SDGs6.3 mental-friendly and safe way to convert waste into resources.
CLEAN WATER SDGs6.4 In 2019, the consumption (during the life cycle of mining, process and
AND
SANITATION delivery of raw material and fuel) of water resources was reduced by
15,000 tons through the use of the alternative fuel and raw material.

8
SDGs8.4 Improving the use of energy, increasing the production efficiency and
creating job opportunity to reduce the link between economic growth
DECENT WORK
SDGs8.5 and impact to environment.
AND ECONOMIC
GROWTH

Reducing the volume of limestone during the mining to reduce the use
of ore material.
The non-carbonate alternative fuel with the content of calcium was

9
used to lower the GHG emission from the manufacturing process.
SDGs9.4
The alternative fuel is used to reduce the use of coal and energy, and
INDUSTRY,
INNOVATION the polluted emission.
AND
INFRASTRUCTURE In 2019, the GHG emission during the manufacturing process was re-
duced by 23,741 tons of CO2e .

Reaching the goal of converting waste into resources.

11
Differentiating from the traditional incineration of gabarge, the high
SDGs11.6 temperature calcination manufacturing process in the cement kiln can
SUSTAINABLE thoroughly degrade waste and hazardous substance causing high pol-
CITIES AND
COMMUNTIES
lution (such as dioxin). The second processing of fly ash and bottom
ash is not required.

The problems of domestic public-sector and industrial waste can be

resolved.

12
SDGs12.4 During the life cycle the waste is properly managed and treated by
RESPONSIBLE SDGs12.5 environmental-friendly approach to largely reduce the release of it to
CONSUMPTION
AND
air, water and soil, thus, reduce the negative impact to human health
PRODUCTION and environment.
In 2019, a total of 148,300 tons of alternative raw material and fuel
were used.
Chief vice plant manager of Hualien Plant, Mr. Chen, stated the journey of
promoting circular economy.
ASIA CEMENT CORPORATION
CORPORATE SOCIAL RESPONSIBILITY REPORT 23
 Green 2.1 Sustainable cycling of resources in
cement manufacturing process
Increasing the efficiency of resources utilization is the core strategy of Asia Cement’s promo-
tion of circular economy, the environmental, economic and social goals are combined to reach the
most effective use of resources. In the effort of driving the circular economy, Asia Cement selected
Hualien Plant as the main operation location and formed a cross-departmental team to strive for
building a circular economy model plant in recent years. Taking local industries as the priority and
considering the needs of Hualien county, the Company had treated wastes including stone powder
generated by stone industry, regenerated aggregates and pulp paper sludge incineration, etc.
Meanwhile, it also assisted industries in other cities and counties to convert waste into resources.

Sustainable cycling of cement manufacturing process

Cement manufacturing process is featured with superior 3T properties
(temperature, time, turbulence): high temperature, long staying time and
strong turbulence, it can thoroughly dissolve waste and hazardous substance
which causes heavy pollution. Hence, circular economy is the most important
Maximizing the possibility of Converting non-recyclable direction to be considered when cement plants adopt strategies.
effective and high-efficient cycling resources into recyclable
use of natural resources. resources. Item Cement Rotary Kiln Gabarge Incinerator
1450~1800°C High temperature is in favor of degradating and
High Buring Temperature (°C) stabilizing hazardous substance. 850~1050°C

Level Of Turburance High Complete burning Low Incompleteburning

Oxidative atmosphere No oxygen in short period of time
Burning Atmosphere Able to totally degrade organic content Hazardous substance generated

Alkaline Acidic
Burning Environment Able To Neutralize Acidic Waste Gas
Ash After Burning NO
Ash becomes part of raw material, no need of processing Yes
ash the second time

Including the environmental goal in Note: The table was compiled and edited by the Company.
Reducing the environmental Sources of information:
the circular economy model in the 1. Guidelines on co-processing Waste Materials in Cement Production.The GTZ-Holcim Public Private Partnership
footprint of cement products.
early stage of design. 2. A study of the technology and policy on the treatment and use of inflammable wastes in cement industry. Ming Lin
Jiang, 2002.
3. The technology of treating the hazardous pollutants generated by incinerating trash.EPA, Executive Yuan, 1999.

Sustainable benefit of circular economy

Portland cement is composed of four elements including calcium oxide, silicon ox-
ide, aluminum oxide and iron oxide. These four elements are extracted from calcium Reducing the volume of mining and the consumption of natural raw materialand
oxide enriched limestone, and clay, silica ore and iron ore that are enriched with the fuel, plus the environmental dispute in the society caused by the process of mining.
other three elements. Hence, as long as the waste or resource-recoverable product is Solving the waste treatment issue faced by the government authority and the
contained of calcium, silicon, aluminium and iron elements, it can be used to replace industry, creating new value for cement industry.
limestone, clay, silica ore and iron ore to reduce the excavation of natural ore. Responding to the international trend of reducing energy consumption and GHG
emission.
Reducing production cost and creating economic benefit.

24 S C
 Alternative Material Alternative Fuel The relationship between Asia Cement’s circular
economy and the manufacturing process
Coal bottom ash Sludge from pulp paper
Sludge from water purification The raw material is mainly replaced and mixed in
Textile sludge the raw material mixing chamber and the weighing
system before the raw material grinding.
Waste wood
Limestone The fuel is mainly replaced in the
Plastic plates RDF
Regenerated aggregates pre-heater located before the
from incineration Soild fuel rotary kiln.
7. Cement Grinding

Basic oxygen furnace 6. Clinker Cooling

slag fine aggregates
Mineral fine aggregates

5. Rotary kiln clinkering

4.Pre-forging Dissolution

3. Raw Material Grinding

The main ingredients are calcium, silicon, aluminum and iron.

2.Crashing The alternative raw material is composed of various ingredients and can reach
the quality requirement of raw material through proper blending.
Block powders are ground into powder and fed into rotary kiln for kilning.
1. Limestone Mining

Circular economy industrial chain

Asia Cement treats the waste generated in Hualien County and from the public business first, and then the waste generated by the buisnesses located in other counties and
cities. It also further evaluates the shipment of material to reduce the pollution caused by the emission of vehicles.

The materials in Hualien County (sludge from pulp paper and water purification, waste woods, hydrated lime, slag) are delivered to our plant than to other county and city, the
pollution caused by the transporting can be reduced.
The coal bottom ash, sludge from water purification and regenerated aggregates delivered from other counties and cities are used to replace the purchased clay from them, so
there is not extra pollution from the transporting.
ASIA CEMENT CORPORATION
CORPORATE SOCIAL RESPONSIBILITY REPORT 25
 Stringent feasibility evaluation of the circular economy Quality and emission management
When evaluating the circular economy suppliers, Asia Cement strictly considered Asia Cement created the relevant key resources for the alternative raw material
three ESG factors of environment, society and economy as the screening condition and fuel, ans monitored the product quality and emissions, so that it could totally re-
for further cooperation. use waste and resource-recoverable products. Focusing on each alternative model
for the raw material and fuel that have different properties, Asia Cement implemented
Operation procedure Description of Procedure a complete monitoring of production quality and waste gas emission, including cost
analysis, cement compression strength, concentrations of NOx and SOx emission,
Investigating which suppliers having the and the emission of particle pollutants, so that the cement products and environmen-
1.Investigating potential opportunity of potential cooperation. tal management can be maintained while maximizing the use of resources.
suppliers and alternative Understanding if the business operation is legal
and reliable.
raw materials and fuel
Understanding the manufacturing process of the
material.
Understanding the production volume and
frequency of clean-up.
Understanding current way of treatment and
price of the material.

Requesting the potential suppliers to provide

samples of the materials for internal analysis. Percentage of ingredient Cement compression strength
Observing the appearance and the dimention
2.Ananlyzing the of the material to check if it is wet and sticky,
any abnormal smell, evaluating the ways of
properties of the material
acceptance, pre-treatment, delivery and mixing.
Analyzing the ingredient and the content of
hazardous substance of the material, evaluating
the volume of the material can be mixed.
Ananlyzing the results and implementing trial
calculation, evaluating the value of the material
and the derived cost of use.

Communicating with the management team of

the supplier about the status and needs of both
sides.
3.Site visit
Confirming if the operation status of the supplier
is consistent with the information collected in
advance.
Understanding the actual production output and
the storing status of the material.
Understanding the future shipping requirements.
Taking samples on site to analyze the material
properties again.
Confirming the possibility of future cooperation. Site visiting of the supplier

26 S C
 Passing the certification of BS 8001:2017
Asia Cement Hualien Plant passed the certification of BS 8001 and received the
recognition of the highest maturity level of circular economy model. Asia Cement en-
deavors to drive a circular economy business in order to increase its competitiveness
and create new value. The path to circular economy is reached through 6 principles
of circular economy of BS 8001: 2017 including systemic thinking, innovation, man-
agement, cooperation, value optimization and transparency. The circular economy
program has urged Asia Cement to create the situation of multiple wins.

The status of replacing by alternative raw material and fuel

in the cement rotary kiln in 2019
Way of Materia/fuel Source and pre-treatment method
replacement Item replaced
By-product is treated to recover
Mineral fine resources by desulfuration,
aggregate Limestone crushing,grinding into powder and
Steel magnetic deironing.
industry
Basic oxygen furnace slag,
Basic oxygen Limestone a by-product, is treated by
furnace slag fine
Dual model – replacing raw material and fuel aggregates Iorn Sand
crushing,grinding into powder and
magnetic deironing.

Stone
Asia Cement’s circular ecnomy is to reuse the waste based on its properties in- Limestone material Stone mud, a waste, is treated to
recover resources by sorting and
stead of the original incineration or landfill, a concept of grave-to-cradle of the waste powder processing
drying.
life cycle for the cycling and reuse of it, a dual model of replacing raw material and Raw Limestone industry
material
fuel. replaced Clay Waste generated from the fuel
Various which is derived from the burning
Coal bottom ash industries of less than 5% business waste
mixture.
Raw material replacement Fuel replacement
The bottom ash generated from
Regenerated the incineration of residential
Multiple benefits in- Using the thermal Trash
aggregates from waste which is treated by crushing,
incinerator
cluding converting waste value of waste as the incineration magnetic deironing and sorting.
into cement product, re- source of heat for the Clay
ducing the excavation required high tem- Sludge from City water
of natural resources and Dual model – perature of cement water purification treatment Sludge generated from the
purification of water.
plant
the emission of GHG. replacing raw kiln while kilning,
Each batch of by-prod- material and fuel reaching dual effects Wastes of non-harzardous oil mud
Waste
uct or waste is required of treating waste and Soild fuel treatment and waste wood are treated by
to be analized during the reducing the cost of business magnetic deironing, mixture and
sorting.
process for the purpose coal.
of calculating the ingre- Fuel Opto- The waste polarizing film produced
replaced Coal
Plastic plates
dient volume for replac- RDF
electronic by polarizers is treated by crushing
business and sorting.
ing the natural material
to ensure the cement Sludge from Paper
Sludge from waste water treatment.
products meeting the pulp paper business
quality standard.

ASIA CEMENT CORPORATION

CORPORATE SOCIAL RESPONSIBILITY REPORT 27
 Green 2.2 Sustainable benefits of circular economy

The main goal of the circular economy promoted by Asia Cement is to integrate
arterial industry and veinous industry in a cycling fashion to collectively build an in-
Short, mid and long-term goals
tegrated cycling model, an important measure, in order to reduce the consumption
of resources. It is an effective way of creating three-win situation covering econ- Asia Cement has set short, mid and long-term goals for its circular economy, and
omy, environment and society by converting waste into resources, a realization of using the replacement ratios of raw material and fuel as the key performance indexes
resource-cycling type of society. for the control benchmark.

Sustainable benefits of cement industry circular economy Index and goal

Results of
2019
Short-term goal
(2020)
Mid term goal
(2025)
Long term goal
(2030)
Ratio of
Type of Sustainable
Benefit Benefit of Sustainable Development replacement
Replacing (kg/ton-cement) 43 127 307 399
raw
Reducing the The raw materials of cement are ore and fossil fuel which can material Volume replaced
139,311 410,000 800,000 1,300,000
(Ton)
needs of not be re-generated again. The mining, process and delivery will
raw material cause the impact to environment and landscape. Using wastes Ratio of
Replacing replacement (%)
2% 5% 10% 15%
mining and fuel as fuel or raw material can reduce the impact to environment.
fuel
Volume replaced
The landfilled organic waste may possibly release methane (a (Ton) 9,018 25,757 51,513 77,270
GHG stronger than CO2) and contaminate ground water.
Providing waste
Residual ash is generated from the burning of incinerator (The
treatment
content of heavy metal needed to take special treatment is
service to the
high).
society
Waste treated by cement kiln does not have the above problems,
thus, the efficiency of using natural resources is higher.

Controlling the
emission of CO2 Using alternative fuel and raw material can largely reduce the
and reducing emission of CO2 from a single plant and the entire society.
fuel consumption

Reducing the Using alternative fuel and raw material can reduce the impact to
impact to water water resourcs by the the life cycle of the raw material and fuel
resources during mining, process and transport.

Alternative raw material and fuel may be cheaper than ordinary

Reducing the raw material and fuel.
cost of The alternative raw material and fuel are required to be pre-
fuel and raw homogenizied, extra equipment are to be invested to meet the
material requirements of environmental protection, safety and health.

Waste is completed Differentiating from the traditional incineration of gabarge, the

cycled and used, high temperature calcination manufacturing process in the
no issue of second cement kiln can thoroughly degrade waste and hazardous
pollution. substance causing high pollution (such as dioxin). The second
processing of fly ash and bottom ash is not required.

28 S C
Sustainable ESG benefits of cement industry
Type of sustainable benefit Item Results of sustainable benefit in 2019
Reducing the needs of mining natural raw Reduced the mining and use of 148,300 tons of natural raw material and fuel.
material and fuel.

Porviding waste service to the society. Reduced 148,300 tons of waste landfill and incineration.

Reduced the GHG emission of 23,741tons of CO2e during the manufacturing

Environmental benefit Controlling the emission of CO2 to reduce the process by using alternative raw material and fuel.
consumption of fuel. Completed the inventory and verification of 2019 cement product carbon
footprint (ISO 14067:2018)

Reduced the impact to 15,000 tons of water resource (during the life cycle of
mining, process and transport of raw material and fuel) by using alternative
Redcuing the impact to water resource. raw material and fuel.
Completed the inventory and verification of 2019 cement product water
footprint (ISO 14046:2014), and the risk evaluation of water shortage.

Reducing the costs of fuel and raw material to

gain the benefit of processing. Economic benefit gained by using alternative material and fuel.

Completed the verification of 2019 BS 8001:2017 circular economy model

Economic benefit Installing a sustainable circular economy model. and obtained the certificate of the highest maturity level.

Reducing the risk of relying on resources and Natural resources replaced by waste, lowered the risk of relying on natural
strengthening the organizational resilience. resources and increased the economic resilience of Asia Cement.

Increasing job opportunities. Created job opportunities.

Social benefit
Implemented circular economy to respond the expections of the customers
Improving customer relationship. and investors, increased the engagement with the stakeholders.

Note: Calculation based on the actual status of cement rotary in 2019.

Future outlook of cement industry circular economy

Asia Cement moves toward the sustainable development of environment and strives for reducing waste and
reusing resources, utilizing the properties of cement manufacturing process and cooperating with the govern-
ment and industry to gain the benefit of lowering the external cost of environment, for the purpose of executing
the circular economy project of energy saving and carbon reduction, and waste and resources reuse.
In the future, the Company will continue the effort by using the advantage of the properties of cement man-
ufacturing process to comply with national policies in order to help to satisfy the needs of the community, the
government and the related industries, furthermore, to solve the difficult problem of processing waste and to cre-
ate new value for the cement industry, to continuously realize a sustainable green homeland with the advanced
technology and the mindset of loving the Earth.
ASIA CEMENT CORPORATION
CORPORATE SOCIAL RESPONSIBILITY REPORT 29
 Management Guideline Cement 4.0
For the goal of improving the production efficiency and quality, and

03
the industrial upgrade of cement industry, Asia Cement Hualien Plant
- In all mining and manufacturning had hired electrical engineers to introduce Industry 4.0 into cement
process Asia Cement firmly maintains manufacturing process, to create smart control system, to enhance the
a sustainable driving force of “the born efficiency of production and equipment, and to prepare the production
LOW CARBON DNA of Asia Cement is environmental
protection”. It continuously advances
automation and industrial upgrade of the cement industry. Thus, it can
become the role model of cement industry that creates benefit for the
and adjusts itself in the operation and industry.
GREEN SMART sustainable development to show the
determination and effectiveness of real-
MANUFACTURING izing corporate social responsibility and
passing down to all subsidiaries.

Practical actions and Effective evaluation

Commitment initiatives method
Promoting Asia Cement Hualien initiate a five-year and 3-phase plan Data analysis and application: Build-
Plant as the role model of smart of Cement 4.0 . ing various data models, improving
manufacturing base. Consistently adopting voluntary re- the efficiency of data analysis and
duction encouraged each year. the reuse, strengthening the quality
of decision making.
Goals and targets Conduct a routine review meeting to
Management system check the implementation status and
to report the progress of working to-
The annual total carbon reduction of Consistently drive ISO 14001 environment
wards the goal.
all operational boundaries is at least management system to systematically
24,750 tons of CO2e, equivalent to control the emission. Preparing management plans and
adding 500 phoenix trees each year. Consistently promoting to install energy establishing important performance
management system ISO 50001. indicators for the management.
Consistently adopting voluntary re-
duction encouraged by Industrial Installing monitoring and test equipment Routinely conducting management
Development Bureau each year, con- and the method of estimate to inspect the level review meeting to make the ad-
emission concentration and volume in the justment.
tinuing to apply for the carbon right plant, to control the emission staus in real-
issued by the government. time fashion in order to correct the adnor- Routinely reviewing and improving
Monitoring the concentrations and mal situation. nonqualified items and implementing
annual volume of all emissions to re- improvement measures.
The concentration or volume of all emis-
duce pollutants and carbon emission. sions at the borderline of the operation Asia Cement Hualien Plant has
Monitoring the heat consumption of shall comply with the legal standards. passed the certifications of ISO
various production systems to control Checking the compliance to environmen- 14067:2018 product carbon footprint
the volume of fuel used. tal protection laws and regulations through standard and ISO 14046:2014 prod-
rountine and non-routine site inspection, uct water footprint standard, and in-
The water recycled per year over implementing improvement measures in spected the hot spots to reduce the
85%.Reducing at least 1% of power case of non-complaince. use of energy and resources and the
consumption each year. Evaluating the risk to water to identify the emission of carbon.
impact and to increase the percentage of
water recycle and reuse.
30 S C
Low Carbon Green Smart Manufacturing in compliance with UN
Sustianable Development Goals— Highlights

Low cabon green leadership Water resource management

SDGs 6.3 The effluent is treated according to the effluent standard, the
6 waster recycled from the manufacturing process in Hualien
12
SDGs12.2 The first cement company in the world received CLEAN WATER SDGs 6.4
3 certificates of carbon footprint, water footprint AND SANITATION Plant is over 85%.
RESPONSIBLE
SDGs 6.b
CONSUMPTION
AND
PRODUCTION
and circular economy at the same time.
12 RESPONSIBLE
CONSUMPTION
AND SDGs12.2
Supporting to enhance the infrastructure including water
supply to local community and water drainage.
PRODUCTION

Smart manufacturing cement 4.0 Pollution prevention management and waste reduction

SDGs8.2 Launched a five-year three-phase smart 4.0

8 DECENT WORK
9 INDUSTRY, SDGs9.4
cement production program. 11 SUSTAINABLE
CITIES AND
SDGs11.6 Waste reduction and prevention management.
AND ECONOMIC
GROWTH
INNOVATION
AND
COMMUNTIES
SDGs12.5 The recycle or reuse of general industrial waste is 75% of
Smart control to increase the production output
12
INFRASTRUCTURE

SDGs7.3 the total.

7 AFFORDABLE
AND
12 RESPONSIBLE
CONSUMPTION
SDGs12.2
and to reduce power consumption. RESPONSIBLE
CONSUMPTION
AND
CLEANENRGY AND
PRODUCTION Smart control of the management and effective PRODUCTION

use of energy and resources.

Energy resources and cabon management

GHG was reduced by 53,686 tons of CO2e equivalent to 1,086 phoenix trees.
SDGs7.3 The actual absolute reduction volume reached 33.2%, exceeding the 20% target of national absolute reduction volume by 2030.
7 AFFORDABLE
AND
9 INDUSTRY, SDGs9.4 Reducing the emission strength of cementitious material by 3.76%. (2005is the baseline year)
INNOVATION
CLEANENRGY AND
18 energy saving action items saved a total of 436TJ heat value.
SDGs12.2
INFRASTRUCTURE

12 RESPONSIBLE
CONSUMPTION
13 CLIMATE ACTION SDGs13.3
The power saved from the energy saving program and the power generated from the waste heat in Hualien Plant can supply the needs of about 30,000
households.
AND
PRODUCTION

The effective use of energy resource and the reduction of emission

The sustainable development operation is an important way of running a business. The effective use of water during
the manufacturing process and the transporting, and various resources, plus the reduction of energy consumption by
recycling waste heat and improving production technique, and the reduction of the resulted carbon emission, air and
water pollution, and waste, are the responsibility of all industries. In compliance with the environmental protection laws,
regulations and comittments, Asia Cement endeavors to reach the reduction and prevention of pollution, controls the
environmental risk and keeps making the improvement. The Company expects to proactively create various manage-
ment systems in order to minimize the emission and the use of energy and resources to maximize the benefit, hence, For the details of the envrionmenal and energy policies, please
to form Asia Cement’s vision of promoting the sustainability of green environment. consult with Asia Cement ESG Resource Center:

ASIA CEMENT CORPORATION

CORPORATE SOCIAL RESPONSIBILITY REPORT 31
 Green 3.1 Low cabon green leadership
A role model of low carbon manufacturing process technology
Each employee in Asia Cement has the DNA of environmental protection, they always promote the idea of energy saving, carbon reduction and low carbon manufacturing process
with all effort. Cement manufacturing is a high energy consumption industry, large volume of fuel and power are consumed during the manufacturing process which resulted a lot of
GHG emission. In order to effectively save energy and reduce emission, Asia Cement highly values the issue of energy and resource consumption, it has proactively adopted the
latest energy saving equipment and technology and achieved great result of carbon reduction. Starting from 2016, the chief plant manager of Asia Cement acts as the convener of
promoting low carbon manufacturing process in compliance with cement industry GHG reduction to assist the cement industry in Taiwan to improve the low carbon manufacturing
process. In addition, he launched a cement plant smart manufacturing cement 4.0 five-year plan which already began to show the benefit. In 2017, for the sixth time, the Company
received the award of “Excellent Company in Industrial GHG voluntary Reduction”, helped the cement industry to improve cement grinding manufacturing process by conducting
demonstration, plus opening the site of manufacturing process to the cement industry for visiting. In 2018, the efficiency of power generation from waste heat was further improved.
A service center was established to provide services to aboriginal tribes including the realtime data of monitoring and measuring the vibration caused by the explosion in the mining
mountain. In 2019, Asia Cement introduced circular economy into cement rotary kiln by adopting the dual-model of alternative raw material and fuel based on the features of cement
manufacturing process. It worked with government and industry to reach the benefit of lowering the environmental external costs and implemented the circular economy project of
energy saving, carbon reduction and reuse of waste, thus, created new value for cement industry.

2009 2015 The only one in the 2019 The “Portland The “Portland
Passed the
certification of the
cement industry The cement cement” produced cement” produced highest maturity

2012 2016
in 2019 passed in 2019 passed level of circular
Received the honor of “Excellent company in the certification of the certification of
economy BS
8001:2017 by
Company in Voluntary Volume the world ISO 14067: 2018 ISO 14046: 2014 using the

2013 2017 Reduction” from Industrial received 3 certificates at product carbon product water dual-model of
Development Bureau the sixth time. the same time. footprint standard. footprint standard. replacing raw
material and fuel.

2000 The first one in

cement industry
Installed a stone well transporting system in
2012
Improved cooling machine and reduced 32,662 tons of
2016 till present
The chief plant manager of Asia Cement acts as the
the mining area to reduce diesel oil used in CO2e emission per year. convener of promoting low carbon manufacturing process
transporting and reduced 692 tons of CO2 e in compliance with cement industry GHG reduction.

2014
emission per year.

2016
The first one in
2002
The only one in
cement industry till present
cement industry
Started to improve the main motor and control of
Installed waste heat power generation recycling system rotatry kiln and reduced 8,003 tons of CO2e Launched a 5-year cement plant smart manufacturing
and reduced 86,110 tons of CO2e eimission per year. emission per year. cement 4.0 plan.

2008
Added limestone in the cement grinding manufacturing
2015 2017 one
The first and the only
in cement industry
Improved preheater upward air duck and reduced 11,939
process and reduced 83,045 tons of CO2e emission per year. tons of CO2e emission per year. Improved cement grinding manufacturing process
and conducted demonstration.

2009 The first one in

cement industry 2016 The only one in 2018 2019
cement industry Established a service center to Introduced circular economy in
Improved cooling machine and reduced 29,667 tons Developed low carbon masonry cement and provide services to aboriginal cement rotary kiln and used
of CO2e emission per year. reduced 366 tons of CO2e emission per year. tribes including the realtime data alternative raw material and
of monitoring and measuring the fuel, reduced 23,741 tons of
vibration caused by the explosion CO2e eimission.
in the mining mountain.

32 S C
 Green 3.2 Smart manufacturing cement 4.0
Sticking to the principle of technological autonomy, Asia Cement Hualien Pant started to develop electrical instrument information in 20 years ago. In 1983, ACTEC
(Asia Cement TEChnology), named by Executive Director Chang, was applied to cement production and waste heat power generation, plus the external technology
support and exporting. Currently, there are a total of 11 dedicated information staffs.
Starting from 2018, Asia Cement cooperated with Yuan Ze University by inviting the professor to teach AI theories and computation method and to integrate the
original ACTEC control system into a “ACTEC AI control system”. The familiar AI theoritical knowledge was integrated into the existing experiences and capabilities to
develop the application of ACTEC AI which resulted a cement 4.0 project. The Company also discussed with Far Eastone Telecom, an affiliated company of the group,
the deployment of the IT infrastructure, the introduction of data analysis platform and the application of NBIoT, working together to plan the project of developing smart
factory for the companies in the group.

A five-year three-phase implementation project

Asia Cement has implemented a five-year three-phase program including 9 items from 2016 to 2020, a part of cement 4.0. The scope and boundary of each item
can be adjusted timely based on the status of development and requirements, allowing a better deployment by the production department from the saved manpower.

01 Results of Implementation
04 Results of Implementation
07 Results of Implementation
Cloud Monitoring Smart System
Smart Shipping
(Asia Cement For The Safety
Installed a smart cloud platform for handling Situation Room) Of Work
product shipping. Completed a warehouse
Building a shipping information unman product shipping window, installed a Integrating internal, external and Establishing bio-recognition A contractor mobile device information
communication platform for smart port warehouse product shipping public information; increasing Visualized layout under planning. system for controlling the entry exchange platform under construction.
the entire automatic shipping. system. information transparency and and exit of the contractor
Digital management and data access
Installed a port (outside of the Plant) cement level of realtime; compiling and platform under design. personnel, control system for the
warehouse monitoring platform to timely analyzing information, access of special construction
control the status of stocks and equipment. presenting in the form of charts zone and site inspection position
and figures. check point system.

02 05 08
Kiln Brick Production Lines Installed a smart tour inspection system
Smart Control
Analysis And Pre-learning And and an online pre-learning maintenance
(Optimization)
database to present the analysis and
Forecast Maintenance prediction via visualized figures and tables.
Establishing smart inspection Installed a management platform for Optimizing the control parameters The cement grinding production system
Building data analysis platform Collected the data of kiln temperature and system and on-line pre-learning technical specifications, troubleshooting was converted into a smart control system
to collect and analyze the performed frequency spectrum analysis to of the cement grinding system
and maintenance database, and maintenance of equipment. and the raw material system. with no manual operation.
relationship between the understand the relationship with the falling of developing the diagnosis of
temperature of kiln shell and bricks, a more effective way of analyzing the The technology of vibration measurement,
data in current study. vibration measurement analysis
the fall off of bricks. and oil sampling analysis analysis and diagnosis was under develop-

03 06 09
technique. ment.

Smart Quality Big Data

Control Smart Mining Analysis
Analyzing automatically and Installed a platform for limestone big data Optimizing preliminary grinding Completed the consolidation and the Launched a data analysis management
analysis to show the real-time ingredient by auto control system, establishing software system optimization of the primary
The data analysis is applied to the
in realtime fashion the cost analysis of the production, program to perform data analysis through
composition of limestone, visualized figures and tables, and to send the volume of mine, good quality and secondary crush systems control visualized platform.
out the notice of abnormality and the request database and multi-function rooms to achieve an unman primary crush
quality control and segments.
establishing data base of for treatment.
limestone composition and computing system. control system.
realtime auto-notification,
and handling for abnormal
composition.

The First Stage Second Stage The Third Stage

ASIA CEMENT CORPORATION
CORPORATE SOCIAL RESPONSIBILITY REPORT 33
 -
Products smart shipping system
Widely adopting various digital technologies

IOT
Target

Un-man truck loading.

AI License Plate Activ real-time IOT Application
Identification, RFID Cloud Service APP information platform Auto-vehicle dispatch Auto-truck loading
(NBIOT)
Innovative cement sales Customer checks goods Personnel can conveniently Smart vehicle dispatch and Adopt AI to simulate loading Know the cement stock of
Card-scanning not
and service model. needed for the enter
pick-up real-time information and efficiently commu nicate self-service goods pick-up to operation to save manpower customers, sales people
via mobile phone. via mobile phone in real-time save manpower of handling. for loading. actively provide services.
and exit of vehicles. For the abnormal truck fashion.
Prevent wrongdoing. loading, supervisor is No need for drivers to wait at Collect remote equipment
notified to handle the Send information to the the window for filling papers
mobile phone of the custom- operation data, conve nient
situation. and pick-up goods. for the managing staffs to
Drivers inquire goods er upon the completion of the
loading. know the status of
Production Line Predictive shipping progress real-time
information via mobile
equipment.
Maintenance phone to determine when
the truck is needed.

Target Benefit

Real-time data Upload inspected

Determine the cause of failure data & verify repair
transmission and and the level of seriousness
alarm notification results

1 2
Basic
Prepare spare parts and arrange the repair.
Screen the critical information Avoid unpredicted failure of equipment. SQL
defective equipment Inspection AI Expert
Data Server
Vibration Personnel
Analysis Analysis
Fulfill mainte
nance and Maintain lubricant and monitor the
content of metal
Benefit of
P D
follow-up repairs Replace manual determina-
time saving
Scheduled Aided data for failure analysis. tion of the cause of failure.
maintenance la n o Auto-determine the cause of
Connect to Tableau failure and the seriousness

3
Warranty Oil Server via Auto-generate the failure
Repair Analysis computer or mobile work sheet and alarm.
Production

A C
Plan Line Data Undertake repair device or
work based on inquire real-time
the work sheet information via

4
ct he ck and alarm smart cloud.
Assist the control verify by
of spare parts Temperature alarm notification disassembling
Reduce the stock of Spare Parts Infrared the equipment
spare parts. Management temperature
Prepare spare parts test
based on the Repair Asia Cement
predicted failures. Record Management Smart Cloud
Inspection
Personnel Personnel

Input historical record for inqury

Predict the time of failures based on
the trend

34 S C
Smart control system Performance Analysis
In the Pytorch deep learning environment, the deep reinforcement learning in
machine learning is adopted by the computation method to develop the AI control
system. The no. 4 cement grinding system model is built by both online and off-
line learning methods, and then developed the no. 4 cement grinding ACTEC AI
control system.

PLC
Input
module AI
Cement Mill 4 in Predictive mainte- Smart cement
Hualien Plant was nance system: the shipping system:
Sensors changed to un- cost was reduced by unmanned shipping,
manned operation NT$12 million / year, the cost was reduced
Temperature, to increase the and the predictive by NT$4 million /
pressure, production output maintenance model year, an innovative
voltage, current,
power, flow,
Network and to reduce
power consump-
was built. cement sales and
service model.
speed, weight tion, the cost was
PLC reduced by NT$6
Output DataLog million /year.
control module

ASIA CEMENT CORPORATION

CORPORATE SOCIAL RESPONSIBILITY REPORT 35
 Green 3.3 Energy resources and cabon management
The status of using raw material and energy resources of Hsin Chu and Hualien plants

Circular Economy Investment Input Energy

Desulfuration Gypsu 153,468 Ton Power 1,154 TJ

Steel slags 9,018 Ton

Coal 12,555 TJ
diesel 25 TJ
Gasoline 0.31 TJ
Heavy oil 0.032 TJ
Fuel replacement 75 TJ
Total energy 13,810 TJ

Waster heat power

Clinker process generation process Cement process CO2e 3,108,034 Ton
Input Raw Material
NOx 4,894 Ton
Plants Limestone 5,322,230 Ton
Clay 75,100 Ton
SOx 541 Ton
Gypsum 13,391 Ton Produced clinker Power generated Produced cement
3,385,859 Ton 93,596 Mwh 3,535,947 Ton Particles 1,368 Ton

Energy Products Energy Products

Ready-
mixed Power 31 TJ Stainless Power 139 TJ
Ready-mixed Steel Stainless Steel Roll 83,814 Ton
concrete concrete 4,631,443,000 M3
Process
process Heavy oil/Diesel 79 TJ Gas 72 TJ
Side Product 4,209 Ton
Gasoline 6 TJ Gasoline/Diesel 1 TJ
Emission Emission
Total Energy 115 TJ Total Energy 212 TJ
CO2e 10,696 Ton CO2e 25,394 Ton
Raw Material Raw Material
Gravel 7,713,975 Ton
NOx 0 Ton NOx 3.5 Ton
Stainless Steel Roll 91,648 Ton
Ya Tung Cement 744,225 Ton
SOx 0 Ton Yuan Long SOx 0 Ton
Ready-mixed
Slag/Fly ash 880,690 Ton Particles 16 Ton Lining Paper 1,567 Ton Particles 0.2 Ton

Note: Power heat value was derived from 860kcal/kWh of the power physical heat value used at the consumption side.

36 S C
 Using recyclable and regenerated material
1,500,000 1,437,039 1,400,971 9%
Asia Cement aggressively promotes circular economy, its operation locations of using
recyclablematerial include Hsinchu Plant, Hualien Plant, Nanhua Cement Corp. and Ya 8.94%
1,151,096
Tung Ready-Mixed Concrete Corp. Hualien Plant uses external recycled raw material 8.8%
1,125,000
and in-plant waste (refractory brick, etc.) as the alternative raw material of cement. Other
plants are using desulfuration gypsum, blast furnace slag and fly ash as the alternative 8.67%
8.6%
raw material; Nanhua Cement used the recyclable material of water quench blast furnace
750,000 8.52%
slag 100% in the grinding process of slag powder. In 2019, a total of 1,400,971 tons of
recyclable material was used which summed up to 8.94% of the total raw material. The 8.4%
percentage of using recyclable material is steadily increased throughout the years.
375,000
Due to the features of the industry, Asia Cement and its subsidiaries do not use re- 8.2%
generated material and the percentage of packaging material is very minor which is not
included in the calculation. 0 8.0%
Due to the properties of the products, among all operation locations of Asia Cement 2017 2018 2019
and its subsidiaries, only Yuan Long Stainless Steel uses lining paper in its process and
products to protect the products. As a result of aggressively recycling and reusing lining
Recyclable material(Ton) Proportion of recycled materials in total materials (%)
paper, in 2019, a total of 1,190 tons of lining paper were recycled, 71% of the total lining
paper used. The weight of recycled lining paper is 1.35% of the total produced stainless
Using recyclable material
steel.

Energy Products Energy Products

Pre-casted Power 1 TJ Precast Slag Powder Power 73 TJ Slag powder 349,649 Ton
concrete Cement 3,827 M3 Process
Heavy oil/Diesel 2 TJ Products Heavy oil/Diesel 44 TJ Limestone powder 153,141 Ton
Total Energy 3 TJ Total Energy 118 TJ
Emission Emission

Raw Material CO2e 295 Ton Raw Material CO2e 12,706 Ton

Gravel 3,616 Ton NOx 0.3 Ton Water Quench Blast 372,303 Ton NOx 0.9 Ton

Ya Li Sand 3,413 Ton SOx 0.4 Ton Nanhwa Furnace Slag 8,301 Ton SOx 1.0 Ton
Precast Cement
Clinker/Steel 2,863 Ton Particles 0 Ton Desulfuration Gypsu 155,772 Ton Particles 13 Ton

Products Transportation
Power
Generation Transportation
Process Power 2,274,040 MWH Cargo Transport 8,032,132 Ton
Energy Energy
Gas 17,277 TJ Emission Emission
Diesel 396 TJ
Power 67 TJ CO2e 872,958 Ton CO2e 29,820 Ton
Total Energy 396 TJ
Total Energy 17,343 TJ NOx 263 Ton NOx 2.8 Ton
Chiahui SOx 0 Ton Fu Ming/ SOx 0 Ton
Power Da Transport
Particles 14 Ton Particles 0.2 Ton

ASIA CEMENT CORPORATION

CORPORATE SOCIAL RESPONSIBILITY REPORT 37
 GHG inventory and verification Asia Cement Hualein Plant key scope 3
Implementing annual GHG inventory verification and registry based on the in- Since 2016, Asia Cement Hualien Plant started to take the inventory and to disclose
ventory guidelines and regulations published by EPA. The GHG emissions of Asia the data of scope 3 GHG, it followed the standard of business GHG inventory scope
Cement headquarter, Hsinchu, Hualien Plants and 6 subsidiaries are classified as 3 announce by GHG Protocol to steadily expand the scope of inspection, up to 2019
scope 1-3,842,470 tons of CO2e and scope 2 -217,819 tons of CO2e, the emission a total of 4 categories of scope 3 were taken the inventory which summed to 400,124
boundary of scope 3 is mainly in Hualien and Hsinchu Plants, its emission is 404,810 tons of CO2e including the emission from upstream raw material such as limestone,
tons of CO2e. gypsum, the emission from the mining of coal and its ocean/inland shipment. The
emission from the ocean/inland shipment of raw material and the treatment of waste.
Scope 2 500 Scope 3 Scope 3 The emission of scope 3 is about 11% of the total emission. Through the identification
(10k t CO2e) 0.1 Scope 3 40.5
Scope 3
6.5
and analysis of emission hot spots, the risk and opportunities from the value chain can
400 1.0 be evaluated.
Scope 1 300
Waste generated
(10k t CO2e) 457 416
457 457
374 457
377 457
384 in operations
200 407
0.1%
Upstream
Scope 3 100 transportation &
(10k t CO2e)
24 24 22 22 22 distribution
0
59,237
2015 2016 2017 2018 2019
Asia Cement GHG Performance
14.8% Purchased
Note 1: Hualien Plant (scopes 1 &2) and Chiahui Power were verified by a third party. Hsinchu Plant did goods &
not activate cement kiln in recent years and largely reduced its emission, thus, since 2019, it was services
not required to take the inventory and to report GHG, all other subsidiaries took the inventory by Fuel- and
themselves (GHG emission from power and fuel). The baseline years for Hsinchu and Hualien Plant energy-related 171,722
is 2003, Chiahui is 2005. Refering to EPA GHG Emission Co-efficient Management table (version
6.0.4) and 2018 Power Emission Coefficient Value announced by Bureau of Energy, Ministry of
Economic Affairs, in 2019.
activities
168,757
42.9%
42.2%
Note 2: Since 2016, Asia Cement started to calculate the emission of scope 3 by steps. In 2019, Hualien Plant
undertook the inventory of four categories of scope 3, The items of inventory taken in Hsinchu Plant were
product purchase and services (Gypsum).

In which the scope 1 and scope 2 emissions of Hsinchu and Hualien Plants in
2019 were 2,936,853 tons of CO2e and 171,182 tons of CO2e respectively. The cal-
culation of scope 3 was 404,810 tons of CO2e.

400 Scope 3 Scope 3 Hualien plant GHG Performance of scope 3 in 2019(10k t CO2e)
Scope 2 0.1 Scope 3 Scope 3 40.5
(10k t CO2e) 6.5
300
363 457
1.0
457 457 457 External energy consumption
Scope 1
(10k t CO2e) 200
323 286 288 294
The external energy consumption outside of the organization was calculated
Scope 3 100 based on the inventory data of scope 3 of Asia Cement Hualien Plant, three catego-
(10k t CO2e)
19 19 17 17 17 ries of scope 3 included the activities relating to fuel and energy, the transport and
0 dirstribution of upstream raw material, the waste generated from operations. The
2015 2016 2017 2018 2019 energy consumption was 202TJ.
Hsinchu and Hualien plants GHG Performance Note: The diesel used was estimated by taking GHG emission of scope 3 and divided by diesel emission
coefficient.
38 S C
 The emission strength and the energy density of
cementitious material
Linking to Global Cement and Concrete Association (former Cement Sustainable
Development Initiative Action Organization), Asia Cement discloses the relevant
data each year to the public. It also created a KPI for the emission of cementitious
material (clinker + gypsum + limestone), plus the target of reducing the emission
strength of cementitious material by 6% by 2030, comparing to that of 2005.
In 2019, the actual emission strength was 0.85 ton-CO2e / ton of cementitious
material, the actucal percentage of recudtion was 1.77%; the energy density was
3.77 GJ/tons of cementitious material, increased by 0.05 GJ/ tons of cementitious
material comparing to 2018. In 2019 the circular economy project was implement-
ed, it was estimated that the adjustment of parameters and the way of batch feed-in
of material caused the loss of heat energy, the impact of the kilning to the material
feed-in equipment was sequentially tested and engineering work of adding alterna-
tive fuel delivery system and the modification of fuel system was under planning.
Product carbon footprint
Facing global climate change or even climate emergency situation, Asia Cement
constructed a comprehensive climate strategy endeavoring for energy saving and 1.00 10%
0.865 0.842 0.847 0.850
carbon reduction which transparently disclosed the GHG emission of scope 1 – 3.
It is the first cement company in Taiwan taking GHG emission volume throughout 8%

the entire life cycle to fulfill the climate change management and corporate social
6%
responsibility.
0.50
Asia Cement Hualien Plant took the inventory and the related computation in 4%
compliance with ISO14067: 2018, ISO14040:2006, ISO 14044:2006 standard and 2.67%
2.08%
guideline. Adopting the concept of life cycle, it performed a complete inventory of 1.77% 2%
product carbon footprint of the production of Portland cement from raw material,
manufacturing process to product in 2019. Through the inventory of product foot- 0.00 0%
print, the Company learned the overall life cycle GHG emission from the cradle to 2005 2017 2018 2019
the front gate, the data will be used as the reference for future strategy of energy
saving and carbon reduction.

Absolute volume reduction The emission strength of cementitious material

For the purpose of maintaining the consistency with the targeted schedule of Note 1: Data of Hsinchu and Hualien Plants, taking the emissions of scopes 1 & 2 and devided by the
CSI volume of cementitious material.
national volume reduction, the Company took the year of 2005 as the base line
year of the targeted absolute volume reduction. In 2019 the actual reduction of the Note 2: For linking to the international target and the current industrial status, the reduction target was
adjusted to the emission strength of cementitious material.
absolute volume reached 33.2%, exceeding the national absolute volume reduction
target of 20% by 2030.
Note: The data of Hsinchu and Hualien Plants, calculation based on the emissions of scopes 1&2.

ASIA CEMENT CORPORATION

CORPORATE SOCIAL RESPONSIBILITY REPORT 39
 Performance of energy saving and carbon reduction
In 2019, Asia Cement Hsinchu/Hualien Plants and the subsidiaries strived for
implementing energy saving project and reached excellent outcome. A total of 18
action plans were implemented and saved 436TJ of heat value, among which the
electricity was saved approximately 12,780,000 KW/h enough for the consumption 500
436 436
of 3,647 households. The periods of gaining the benefit of energy saving from the 18
action plans were from 0.1 to 15 years (excluding the improvement or replacements 400 362 364
336
needed for the operation).
300
The GHG reduction from the energy saving project summed up to 53,686 ton-
CO2e, in which the reduction of scope 1 was 46,874 ton-CO2e, 6,812 ton-CO2e for 200
scope 2. The volume of reduction was equivalent to the carbon reduction by building
a forest with 1,086 phoenix trees. Since 2012, Asia Cement’s cumulated carbon re- 100
duction was equivalent to 4,839 phoenix trees, exceeding the target of 4,000 phoenix
trees. 0
Note 1: 18 energy saving action plans including management measures, replacement of equipment 2015 2016 2017 2018 2019
and circular economy.
Note 2: According to the statistics of Taipower Company, the annual average power consumption of
residential houses in 2018 was 292 KW/h. Asia Cement performance of energy saving(TJ)

Note: Power heat value was derived from 860kcal/kWh of the power physical heat value used at the con
sumption side.

5000
4,839 400

4,000
360
The improvement of The improvement of Raw material replacement 3,753
3750
the exhaust fan of #3 #4CM system in Asia of circular economy in Asia 3,273 3,500 239
260

cement mill in Asia Cement Hualien Plant Cement Hualien Plant 2,899 3,000
210
Cement Hualien Plant 2.493 2,500 186
2500 162
Estimated to save up to Estimated to save up to Estimated to reduce 19,484 1,867 2,000 160
2,020,000 KW/h of elec- 2,350,000 KW/h of elec- ton-CO2e. 143
tricity, saved 7.3TJ of heat tricity, saved 8.5 TJ of heat 1,500 123
1,273 110
value and reduced 1,081 value and reduced 1,251 1,224 92
1250 1,000
ton-CO2e of carbon. ton-CO2e of carbon. 61 63
60
500
0 10

2012 2013 2014 2015 2016 2017 2018 2019

Fuel replacement of Natural gas saving in Chiahui Improvements of power

circular economy in Power by improving power generation process,air
Asia Cement Hualien generation process conditioning and lighting in Asia Cement Energy saving and carbon reduction performance
Plant Chiahui Power
Estimated to reduce 4,257 Actual reduction of 9,412 Actual saving of 77,450,000
KM3 natural gas through KW/h power consumption, Note: Refering to the final report of 2011 National Carbon Fixation Tree Species Complied Plan issued by
ton-CO2e. National Science Council, the carbon removal coefficient of phoenix tree was 0.1099 ton-CO 2e/tree-
measurement, heat value heat value saved 27.9 TJ,
saved 390TJ, carbon re- carbon reduced 4,128 ton- year, 450 phoenix trees were planted in the phoenix forest.
duced 23,132 ton-CO2e. CO2e.

40 S C
Waste heat power generation
The waste heat from the rotary kiln system of Asia Cement Hualien Plant was used
to generate hot water and then going through boiler to produce high pressure steam for
the generator to generate power, a way of generating power by recylcing heat energy. 28%
700,000 30%
In 2019, a total of 93,596,000 KW/h power was generated from waste heat, enough to
supply to 27,000 households. The total power consumption of Hualien Plant in 2019 600,000 25% 25%
25%
was 398,751,000 KW/h, the power generated from waste heat was up to 23% of the 21% 23%
500,000
total. The percentage has been maintained over 20% over the years. 398,750 20%
400,000 458,371 393,092
449,596 413,728
Note: According to the statistics of Taipower, the average annual power consumption of residential 15%
houses in 2018 was 292 KW/h. 300,000
10%
200,000 126,7344 110,85
87,116 97,001 93,59 5%
The first in Taiwan – the mining area passed the energy 100,000
management system - 0%
2015 2016 2017 2018 2019
In 2016, ISO 50001 energy management systems were installed in Hualien Plant,
Hsinchu Plant and Ya Tung Ready-Mixed Concrete Mei Luing Plant. In addition, Asia
Cement Hualien Plant mining mountain was the first mining mountain granted the
certification of energy management system in Taiwan. (Satellite plant: Both Hsinchu
Plant and Ya Tung Ready-mixed Concrete Mei Luing Plant were only installed the Hualien plant Waste Heat Power Performance
system). In 2019, Asia Cement Hualien Plant and its mining mountain passed the
certification of converting into ISO 50001: 2018.
Asia Cement continuously realizes energy management in all operation locations.
In 2017, two subsidiaries, Yuan Long Stainless Steel and Chiahui Power isntalled
ISO 50001energy management system and passed the certification. In 2019, they Building green harbors and low carbon
continued the energy management. transportation city
Shore power engineering is an indicator of harbors around the world in the
Green Power Purchasing convertion into “Green Harbor”. Since 2014, Asia Cement has kicked off a cement
ship shore power supply project in Taichung Harbor, Keelung Harbor, Hualien Har-
Complying with the government bor and Kaohsiung Harbor to provide the power needed by ships docked in the
green energy policy, in 2019, a total ports to reduce the air pollution and noise impact to the environment in the harbor
of 67 certificates of renewable ener- area caused by buring fuel during the time of docking. It is a successful model
gy were purchased. for the sea shipment industry. In 2019, the shore power facility was continuously
operated to realize low carbon transportation.

ASIA CEMENT CORPORATION

CORPORATE SOCIAL RESPONSIBILITY REPORT 41
 A role model of low carbon manufacturing process technology

Green 3.4 Water resource management

Hydrological variation and compound disaster risk in all regions were increased due to the impact of climate change, the water resource manage-
ment is more important than ever. Asia Cement adopted water risk management policy to evaluate the risk of water resources to identify the relevant
impacts and to commit the recycle and reuse of water. It also defined the key performance indicator of water resource management in order to control
water risks and to implement the adaptive strategy.

Water risk evaluation Product water footprint

According to the analysis of 2019 aqueduct water risk index performed by World Resource Facing the importance of water resources,
Institute’s Aqueduct Water Risk Atlas, the total water risk level of Asia Cement and its subsidiar- Asia Cement Hualien Plant assessed the poten-
ies is low (level of impact 0-1). In addition, according to the evaluation of World AWARE Water tial environmental impact in connection with the
Resource Scarcity footprint impact, the operation locations of Asia Cement and its subsidiaries water resource shortage issue caused by the life
were evaluated to be low (index 0.1-0.5) in terms of the water resource scarcity. All locations cycle (from cradle to the front gate) of the tar-
are not in the regions where the water resources are under pressure. geted products in the organization according to the water footprint standard ISO
The main sources used by Asia Cement and its subsidiaries are from city water, ground 14046:2014 environmental management – water footprint principle, requirements
water and surface water. The water source of Chiahui Power is from Zen Yi Tang Reservoir, the and guidelines published by the International Standard Organization (ISO) as the
water source of Yuan Long Stainless Steel is from Fengshan Reservoir, the water source of Ya basis of formulating internal water saving program and optimizing the use of water
Li Precast is from Yuan Shan Weir, the water drawn annually from water storage facilities is less resources.
than 5% of the total supply capacity, no significant influence to the water sources. Considering Asia Cement Hualien Plant performed the verification and inventory-taking
the impact assessment of water drawing data in all locations, Asia Cement Hualien Plant and of the Portland cement water footprint in acoordance with ISO 14046:2014, and
Chiahui Power are the main locations of impact boundary. The level of impact was assessed the comprehensive confirmation of Portland cement life cycle water footprint and
and the corresponding measures were taken accordingly. the impact assessment of Portland cement water resource consumption, the first
The water used during the manufacturing process in Hualein Plant was mainly from the company in the cement industry in Taiwan.
pumping of deep well water and the recycling of water from the manufacturing process. The
water levels of two deep wells were monitored and recorded in realtime fashion to observe Waste water draingage management
the variation of the ground water level during pumping. The data of ground water level and the
pumped water volume are routinely reported to the Hydraulic Section of Construction Depart- The waste water drained from all operation locations of Asia Cement and its
ment, Hualien County Government. In 2019, the water pumped was 83% of the total approved subsidiaries do not contain any substances that will cause irreversible damage to
right of ground water drawing. The monitored water levels of two wells did not show obvious water body, ecology and human body, the quality of water drained is in compliance
change before and after the pumping, indicating that the water pumped did not cause impact to with the laws and regulations.
the local water resources.

42 S C
 Recycled water for nursery stock cultivation

Sources of Main information of Water Withdrawal(Ml) Total water consumption(ML) Recycle and reuse(ML) Total drained volumn(ML) Water Storage(ML)
Company Name water used water use Drained water body
2,145
Wild streams under the jurisdiction of 1,971
Asia Cement 13,140
Hualien Plant Ground water Cooling Hualien County government
174.2
(Converge to Liwu River) 4

208
Wild streams under the jurisdiction of
Asia Cement 174
1,556
Hsinchu Plant Surface Water Cooling Hsinchu County government
34.2
(Converge to Toucian River) 2

2,315
Chiahui Cooling, 2,020
City water Furnace used water Puzi River 74.7
Power 24
294.7

4%
Surface
75
Ya Tung City water, 67 water(ML)
Ready-mixed Surface water Blended into products Surface Water 16
8.3 Surface water(ML)

Yuan Long Cooling water tower

88.3
50.5
Ground water(ML) 9%
Stainless City water Sewage 34.4
Production process
44%
37.8
Steel 1

6.5
Products washing
Ya Li Precas City water /Production Sewage 6.5 City water(ML) Ground water(ML)
0.13

Nanhua
Cement
City water Cooling No emissions
3
3
0
52% 91%
9.2
Fu Min (Da) City water Washing, Domestic water Sewage
1.8
Sources, volume and percentages Sources, volume and percentages of water
Transport 7.3
0 of water used by Asia Cement used by Hsinchu and Hualien plants

Note 1: The quality of water drained from all operation locations are in compliance with laws and regulations.
Note 2: Water consumption=Total water withdrawal - Total water discharge.
Note 3: The waster water from Fu Ming (Da) Transport is directly drained into sewage without the installation of
measurement meter. The volume of drainage is estimated to be 80% of the total water extracted (source
of data: The estimate of household waste water and polluted volumn in Taiwan, Construction and Planning
Agency).
ASIA CEMENT CORPORATION
CORPORATE SOCIAL RESPONSIBILITY REPORT 43
 The frequency of extreme heavy rainfall is increased due to the climate change.
In order to reduce the impact Asia Cement aggressively takes measures to adapt to
risks including increasing the efficiency of water use and the effective governance of
water resources to build the capability of coping with the climate change and extreme
disasters, and to reach the goal of maintaining sustainable water resources.

Executing water resource management

Asia Cement Hualien Plant has fully utilized water resources in recent years.
Water resources are used for equipment and material cooling, a portion of water is
lost after use through evaporation, others are collected and recycled after the treat-
ment of water quality, or drained to Liwu stream after the treatment to the discharge
standard, and then flowing to Pacific Ocean, complying to all laws and regulations in
past years. Asia Cement Hualien Plant has been maintaining a high recycle rate for
the water used in its manufacturing process. In 2019, the recycle rate of the water The water used by Chiahui Power is 4% of the annual supply capacity of its water
used in the manufacturing process was 85.97%, over the target of 85%. The volume source Zen Yi Tang Reservoir, hence, local water resource is not influenced by the
of back water is 6.1 times of the pumped water, the water resources are fully used. water pump. Its water quality is treated to the standard and the commitment to the
environmental assessment before draining to Yamuliao ditches. Water resoruces are
mainly used for cooling and boilers. In addition, for the purpose of reducing the use
1,400 1,314 87.5 of water, high-efficient generators and air-cooling system will be used in the second
87.291,268 1,272 1,261 1,272
phase of power generation. The midload of daily average water used will be reduced
1,200 87
by 6,190CMD from 6,500CMD to 310CMD, the water used per unit power generated
86.5 can be largely reduced. A comprehensive assessment of environmental impact was
1,000
done by Chiahui Power before building the plant, all aspects were ensured to comply
85.97 86
800 85.85 with the requirements and commitments after the operation; the variance analysis re-
85.16 85.5 port of environmental impact for the second phase of power generation was approved
600 85.69
in 2017 by EPA of Exeutive Yuan, the equipment is under construction currently.
85
400
222 214 84.5 Returned Water 1. The reuse of returned water is 6
210 211 times of the native water volume
200 185
84 2. Rate of recycling manufacturing
process water is 86%
0 83.5
2015 2016 2017 2018 2019
Native
Water Reservoir 1 Plant Equipment
Rate of recycling Target value of Rate of recycling Water Use Cooling Water
Water pumped Returned water
(ML) (ML) manufacturing manufacturing process water(%) Reservoir 3 Mitigate Dust
process water (%) Nursing Seedlings
Watering Trees
Waste Water
Hualien plant water used, returned and rate of recycling manufacturing process Reservoir 2 Daily Living Treatment Plant
Water

Diagram Of Hualien Plant “Water Saving” Measures

44 S C
A drill of emergency response-Asia Cement Service Inspecting the water drainage ditches at Tai #8 county Emergent evacuation of mid-Fushi villagers. Asia Cement’s heavy machinery fully support the disaster
Center timely attaining the information road to ensure the draining condition. rescue and relief work

Local engagement of water related impacts

Asia Cement Hualien Plant highly values local community engagement. It built an Asia
Cement Service Center to timely communicate with local residents. The impacts relating to
water include the participation and empowerment of mining area water drainage, and the
shortage of water source drainage infrastructure due to the wide area of Fushi village where
the plant is located.
A strict water/soil conservation plan has been implemented in Asia Cement
Hsinchenshen mining area. The conservation facilities are constructed to efficiently
collect rainwater during sudden strong rainstorms to provide flood detention function. Image of realtime monitoring
After the sand sediment the clean water is gradually injected into the natural water
system to avoid the flush of flood to soft surface soil and stone.
The monitoring of water drainage realtime information is made available on the mining
site information public website and in Asia Cement Service Center, such as the water level
of the mining site sediment basin and the realtime monitoring images of 6 locations relevant Emergent assistance to replace broken water
to water drainage, local residents can timley learn the status. A drill of “the evacuation and pipes caused by strong earthquake
disaster emergency response covering the area of mid-Fushi tribe outside of Asia Cement
Hisnchenshen mining area” was conducted in June of 2019. Whenever a typhoon is com-
ing, the Plant will go along with the chief of Fushi village, representatives of residents and
local police to inspect the water conservation facilities regarding the water drainage in the
mining site and the sand sediment basin, an proactive engagement with local community.
Inspecting sand sediment basin during Typhoon Mita in 2019
In supporting the needs of water source, Asia Cement continuously takes maintenance
measures including maintaining the 5-ton water tank installed in the past year and the con-
necting of mountain spring water pipeline to residential houses in the village to provide fixed
time water supply control, water level monitoring and video surveillance. A total of 42 house-
holds were assisted. The broken water pipes in the residential houses caused by earthquake
were also immediately replaced or re-connected. Regarding the water drainage, a nameless
stream flowing through the tribe often causes flood in heavy rains, since 2015 Hualien Plant
took the responsibility of cleaning the channel and protecting the slope of this stream to
ensure the firmness of the water channel and the flow. In addition, a baseball and softball
field, the main sports field for local residents, is often flooded during heavy rains due to the Asia Cement Hsinchenshen
bad water draining, the water is kept there for a long time. The staffs of Asia Cement stayed mining mountain information
public website:
on the field to carefully observe water flow condition during heavy rains and discussed with
water conservation department, the flooding problem was finally solved. Taking the responsibility of cleaning the channel and protecting the
slope of a nameless stream

ASIA CEMENT CORPORATION

CORPORATE SOCIAL RESPONSIBILITY REPORT 45
 Green 3.5 Pollution prevention management and waste reduction
Stationary Pollution Source Emission The Emission of Ozone Depleting Substances(ODS)
Asia Cement controls the rear end of the pollution through high efficient dust col- Most Feon use R-134a and environmental friendly Freon R-410a. Currently,
lection equipment, meanwhile, it selects good quality raw material (fuel) (such as high only Hualien Plant uses a small volume of ODS R-22 (Ozone Depletion Potential
quslity limestone and low sulfur coal) to reduce the air pollution emission from the 0.055) in water cooler and air conditioning of buildings. The environmental friendly
source. In the recent years, the emission values of NOx, SOx and particle pollutants Freon has been successively used to replace the old one during the repairing of
from Hsinchu, Hualien Plants and 6 subsidiaries are lower than the criteria required by the machines. In 2019, the emission of R-22 was calculated to be equivalent to
the law and regulations. 0.02kg of CFC-11 (based on the Freon leakage emission factor 8.5% listed in GHG
emission coefficients management table)
6,000
5,353 5,452
4,891 5,165
5,000
4,229
4,000
Expenses of Prevention Measures
3,000 The funding invested by Asia Cement into sustainable green environment in-
cludes the waste treatement fee, the waste gas emission treatment fee, remedy
1,981 cost, prevention and environmental management cost. In 2019, the expenses
2,000
1,498 1,382 1,412 totaled NT$92.39 million.
1,281
771
1,000 615 561 35,000
545 542
0
30,805 Waste Waste Gas Prevention And
30,000 Treatement Emission Environmental
2015 2016 2017 2018 2019 Remedy Cost
Fee Treatment Fee Management Cost
Nitrogen oxides(ton) Sulfur oxides(ton) Particulate pollutants(ton)
25,000
Asia Cement emission performance
6,000

5,013 5,072 4,894 20,000

5,000
4,561
3,921 15,000
4,000

10,814 11,001
3,000 10,000
8,252 9,239

2,000
5,000
1,372 1,368
1,177 1,200 1,149
1,000 766
611 542 559 0
541
2015 2016 2017 2018 2019
0
2015 2016 2017 2018 2019
Asia Cement Environmental Investment(Ten thousand)
Nitrogen oxides(ton) Sulfur oxides(ton) Particulate pollutants(ton)
Hsinchu and Hualien plants emission performance

46 S C
 Waste reduction
Asia Cement strives for the reduction, recycle and reuse of waste. The manu- The total weight of general industrial waste from Hisnchu and Hualien Plants were
facturing processes of both Hsinchu and Hualien Plants as well as the subsidiaris 832 tons, among which a total of 766 tons, such as refractory bricks, were reused by
do not generate any harzardous industrial waste. In 2019, the total weight of gen- the cement rotary kiln in the plant, approximately 92% of the total waste.
eral industrial waste was 1,049 tons, among which 791 tons were recycled and
reused, approximately 75% of the total weight.
95% 95%
92%
1.600 80% 1,200 90%
78% 78% 53
324 75%
900 45
1.200 66
270 70% 80%

457 457 457 457

800 258 600

982 1,141 791 855 1,098 766 70%

60%
400 300

0 50% 0 60%

2017 2018 2019 2017 2018 2019

Recycle And Reuse(Ton) Incineration(Ton) Recycle And Reuse Rate(%) Recycle And Reuse(Ton) Incineration(Ton) Recycle And Reuse Rate(%)
Note :Including Hsinchu and Hualien Plants and the subsidiaries of Asia Cement, Yuan Long Stainless Note 1: Recycled and reused by the cement rotary kiln in the Plant.
Steel, Ya Li Precast, Chiahui Power that are required to report the wastes. Ya Tung Ready-Mixed Note 2: The cement kiln in Hsinchu Plant was not activated since 2017 and the waste in the Plant
Concrete, Nanhua Cement and Fu Ming (Da) Transport are not required to report their wastes. was removed and incinerated by an outside contractor.
Asia Cement general industrial waste Hsinchu and Hualien plants general industrial waste

Punishment cases relating to environmental protection

Violated Environmental Regulation Violated Environmental Regulation Violated Environmental Regulation
In the sampling audit of the sulfur content in Fly ash squirted out of broken rubber tube, Assisting Contractor A to transport waste waster and sludge
the heavy oil used for fuel showed 0.6% of although water was sprinkled immediately to its affiliated plant for treatement while troubleshooting its
sulfur, exceeding the limit of 0.5% for liquid but particle pollutants were produced and abnormal waste water treatment facility, somehow Fu Da
Transport Company did not file the application to
fuel. dissipated. Environmental Protection Bureau for the exemption of
installing realtime tracking system on the truck.
Fine (NT$) Ya Tung Fine (NT$) Fine (NT$)
Asia Cement 100,000 100,000 Fu Ming (Da) 6,000
Hualien Plant Ready-Mixed Transport
Corrective Measures Concrete Corrective Measures Corrective Measures
Requested CPC to replace oil to meet the Requested the supplier to routinely inspect and replace In the future the application will be filed in accordance
limit of 0.5% sulfur content. material unloading rubber tubes on the tank truck. with the regulation for transporting waste.

ASIA CEMENT CORPORATION

CORPORATE SOCIAL RESPONSIBILITY REPORT 47
 Management Guideline

04 - Asia Cement adopts the strategy

of sustainable development in social
care, which includes “building happy
Caring the community and being
a partner growing together with the
community can create a win-win situ-
LOCAL workplace, helping the disadvantaged
group, enhancing culture heritage
ation. In the beginning of constructing
the plants, each operational site did an
SOCIAL CARE and creating a harmonious society”.
It helps the disadvantaged to walk out
evaluation of the impact to the commu-
nities and continued to coordinate with
of the difficulties and move upwards to them, plus joining the community de-
become a person useful to the soci- velopment plans, in order to reach the
ety. We specifically care the disadvan- mission of social care, which is “the first
taged located at our operational sites choice partner for building sustainable
to strengthen the positive power for the green home”. And continue to carry on.
society

Goal and target Policy and commitment

The social expenses are at least over Asia Cement provides all necessary
NT$45 million per year. assistance of the care and education
for the disadvantaged.
Asia Cement Service Center

Practical actions and initiatives

Contributing and participating community activities Continuing to support the learning of aboriginal youth.

Expecting to take care of every corner needed for help Conducting after-school facilitation for aboriginal
through the care provided by Asia Cement Service young students.
Center and Asia Cement Bodhi Charity Association to
the aboriginal tribe. Human science education and tranditional cuclture
Assisting community activities and construction, donating heritage.
the reconstruction after disasters, assisting the disaster Introducing human science education to have close
rescue and donating to the disadvantaged. cooporation between schools of technical occupation
Assisting the schools in the nearby villages, churches in and industries and to assist the cultural heritage ac-
the community and the activities conducted by the asso- tivities of the tribe.
ciation.

48 S C
Local Social Care in compliance with UN Sustianable
Development Goals—Highlights

Caring local aboriginal people Local People Interviews

35 cases of caring the disadvantaged people in Fushi village.
170 cases of emergency assistance provided to Fshi villagers.

1 4
SDGs 1.5 Conducted after-school free tutoring classes for
391 households of Fushi village visited to build the neigh- aboriginal students.
NO POVERTY bourhood communication channel. QUALITY
EDUCATION

Continued to proactively install and maintain water tank

and mountain spring water pipelines for the remote neigh-

6
SDGs 6.1 bourhood in Fushi village.
SDGs 6.b Continued to apply the expertise of water conservation to Social expenditures and integrated community development
CLEAN WATER
AND
improve the community water drainage in Fushi village.
SANITATION Reduced the frequency of Fushi villagers exposing to cli-
mate related extreme insidents and environmental related

4
Introduced French Center Pompidou “Mobile Art
disasters, as well as the level of damage. Promotion” event to Hualien and invited close to
QUALITY
EDUCATION
100 students to attend the deep-cultivation aesthet-
Continued to dispatch professional engineering team to ics education.
9 11 SDGs 9.1 repair 34 houses nearby the mining area.
INDUSTRY, SUSTAINABLE
Provided the electric bill subsidy to the residential hous-

4
INNOVATION
AND
CITIES AND
COMMUNTIES SDGs11.1 Realized the link between cement industry and
INFRASTRUCTURE
es nearby the mining area, a total of 389 cases which
schools, 273 students visited Ya Tung Ready-Mixed
13 CLIMATE ACTION
SDGs13.1 summed up to NT$3,270,000. QUALITY
EDUCATION Concrete in 6 sessions, 471 students visited Asia
Cement mining mountain in 12 sessions.

14
Took the responsibilities of caring beach, wind-
Supporting the education for aboriginal youth break, road lamps, road trees, parks, phoenix trees
LIFE BELOW
WATER
on Tai #9 provincial road, Tai #3 romantic provincial
road. Received the Enterprise Gold Award.
Continued to hold after-school free tutoring classes for

4
SDGs 4.1 170 aboriginal students in 4 communities.

15
SDGs 4.5 Continued to assist various government offices, schools Cleaned invasive plant species to reduce ecological
QUALITY
EDUCATION and churches to build green tribal environment and butter- impact.
fly eco-education hardware and software. LIFE ON LAND
Assisted tribes to conduct leisure events contest and cul-
tural heritage events.

ASIA CEMENT CORPORATION

CORPORATE SOCIAL RESPONSIBILITY REPORT 49
 Green 4.1 Caring local aboriginal people

Asia Cement values the rights, interests and living of also helped the recovery of the village environment and roads through Asia Cement Service Center and Hualien County
aboriginal people, it endeavors to make Asia Cement Hual- damaged by typhoons. It donated funds for the reconstruc- Asia Cement Bodhi Charity Association, in 2019 the Compa-
ien Plant as the best place for the aboriginal people in the tion after disasters and helping emergency rescue as well as ny visited the elderly in the poor families of this village who are
community to rely on. The practical overall sustainable social the disadvantaged groups, plus social care to deepen the long-time on beds, plus donating material for living to help the
cares promoted by the Company include hiring local people, love into each corner through donating and personally visiting village people who had urgent needs, a total of 35 cases. In
caring tribes and conducting after-class mentoring for aborig- the homes of needed. 2019, 170 cases of emergency assistance provided, the total
inal young students, assisting government offices, schools expenses were summed up to NT$850,000. It is expected to
and churches to build butterfly greenery eco-system, reparing Offering caring to the people in the tribes provide assistance to each corner needed for help.
houses in tribes, assisting tribes to conduct various events, Note : The employees of Asia Cement Hualien Plant were inspired by the
etc. Momentarily caring the children, the elderly living along
society, in 1999 they started to prepare to form a Hualien County
and victims from disasters in need of urgent assistance, offer- Asia Cement Bodhi Charity Association which was officially regis-
Asia Cement agreesively invests resources in to local ing the immediate and warm care to them. Taking the initiative tered in 2005. Contractors were called to join the local social car-
communities, it had budgeted the funds and manpower to learn the needs of the tribes. In 2019, a total of 391 house- ing. Currently,members include 116 employees and 27 contrac-
needs for caring communites and took the initiatives to assist holds were visited. Continuing to care the disadvantaged tors. They proactively learn and care the disadvantaged, long-time
activities and construction in the communities. The Company in Fushi village and the individuals needed for assistance
support funds to 25 individuals and donate 5 social welfare groups
at the year-end (the donations were from employees and contrac-
tors which were not included in Asia Cement social expenditures).

Installing mountain spring water supplu system free of charge

Fushi village is nearby Asia Cement Hualien Plant, it covers a huge geographical area
which may not be totally cared by the government authority. Hence, Asia Cement is the best
partner of villgers and continues to install and maintain 5 tons of water tanks and mountain
spring water pipelines for the village. The water pipes were connected to the housing area
of local residents to provide scheduled water control, water level monitoring and video re-
cording. These measures had benifited 42 households. The water pipes of residential houses
damaged by earthquake were immediately replaced and reconnected.
Installing mountain spring water pipes Installing water tank
Applying the expertise of water conservation to improve the water
drainage in the community
A nameless stream flowing through the tribe often causes flood in heavy rains, since 2015
Hualien Plant took the responsibility of cleaning the channel, altering water drop and flow,
and protecting the slope of this stream to ensure the firmness of the water channel and the
flow. The expenses each year for this caring is NT$180,000.
In addition, a baseball and softball field, the main sports field for local residents, is often
flooded during heavy rains due to the bad water draining, the water is kept there for a long
time which causes a health problem. The staffs of Asia Cement stayed on the field to care-
fully observe water flow condition during heavy rains and discussed with water conservation
department, the flooding problem was finally solved. Taking the responsibility to clean the channel and to Assisting the check of water drainage function in Fushi
protect the slope of a nameless stream. village community.

50 S C
Providing butterfly-attractive plants Providing butterfly-attractive plants Hiring local residents to do greenery vegetation Mr. Huang, the chief of Shuin An village and the volunteer
group expressed the appreciation to Asia Cement for assisting
the construction of the kitchen in the Activity Center.

Building a happy and well living environment in the tribes

In case of any needs of repairing by the tribe people nearby the mining area, Hualein
Plant will immediately provide professional engineering team to offer house repairing
service free of charge, including waterproof work of roof protrusion and rooftop, repair-
ing of ceiling concrete peel off. The inspection and repairing will still be performed in the
future. Local residents are asked to fill in the survey form of satisfaction after the repair-
ing of the houses. In 2019, the expenses for repairing 34 houses was NT$1.51 million.
Asia Cement also donated cement and refractory bricks to local associations, com- The results were very satisfied by the residents
munities and senior people in the tribe to to improve their living environment. Since
July of 2017 Asia Cement started to provide electric bill subsidy to residential houses
nearby the mining area, a total of 389 cases in 2019 and summed up to NT$3,270,000. Assisting tribes to conduct leisure events contest and cultural
heritage events
Assisting tribes, various associations to conduct contests and tribal cultural heri-
tage events, such as harvest festival, tribal cultural and educational events,tribal hand-
icraft activities, aboriginal ethnic groups diversified culture heritage event. In 2019, the
expenses incurred for neighbourhood friendly events was NT$6,650,000.

Building a green environment for the tribe

Continuing to provide butterfly-attractive plants to schools, government Institutes
and communities, assisting to build green tribal environment and Butterfly eco-park,
The repairing of Fushi elementary school building rooftop providing hardwre and software butterfly ecological education to San Jen elementary
water leakage – before the repair
school, and providing greenery resources to 6 locations including Shuolin township of-
fice, Hsinchen train station, Shuolin township Taopugei garbage landfill, Provincial Tai
#9 road, Yilan Sanshing township farmer’s association and local community. A total of
1,310 pots of herbivorous and butterfly-attractive plants or greenery plants, 262 water/
soil conservation tree species and the manpower to maintain greenery landscapes.

In 2019, there was not any incident of infringing the right of

aboriginal people occurred.
Free repair of houses The repairing of Fushi elementary school building rooftop
water leakage – after the repair
ASIA CEMENT CORPORATION
CORPORATE SOCIAL RESPONSIBILITY REPORT 51
 Aboriginal students after-school learning Aboriginal students after-school learning The teaching of traditional cultural handicraft skills.

Green 4.2 Supporting the education for aboriginal youth

Promoting tribe education Mid-Fushi Village aboriginal students Introducing Boyo Welfare Foundation to
after-school facilitation class offer after-school tutoring
In order to solve the after-school learning and safety issues Starting from 2017, Asia Cement works with Fushi Community Boyo Welfare Foundation provided after-school tutoring in
for aboriginal young students to make up the insufficient educa- Development Association of Shuolin Township and Fushi Guard- Fushi Elementary School and covered students from four schools
tion offered by families and schools, since 2015 Asia Cement con- ing Saba Association to provide after-school facilitation class in including Fushi, Hsincheng, Shuolin and Jinmei Elementary
tinuously provides the free-of-charge learning assistance class to Mid-Fushi village. A safe and confortable after-school learning Schools. The disadvantaged children who are not able to catch
aboriginal students, which serves as a safe home for the students environment is offered to children in the tribe. Hence, children’s up the learning are provided an opportunity of re-study. Asia
after school time. In addition to the sense of belonging, students willingness of learning shool courses is enhanced and the results
Cement uses its resources on education to help students. Since
are able to grow strongly in here and making significant progress are good. The response from the participated students are very
2018, it started to provide after-school tutoring by grouping the
in their school study. positive, so that the class will be expanded in the future.
students based on their academic performance. The children
Other than providing subsidy, two employees of Asia Cement
have been showing progresses in their study, demonstrating a
Hualien Plant are voluntarily to become volunteers after work,
good learning outcome.
during the daily class time they assist teachers to facilitae the
learning of students. Currently four community after-school fa-
cilitation classes have been established both in Low-Fushi village
and Mid-Fushi village, a total of 170 students are assisted for their
learning.

Shuolin village “Small Sun Tutoring Class” Low-Fushi Village aboriginal students after-school facilitation class
Small Sun Tutoring Class in Shuolin village focuses on offering after-school tutoring to The chief of Fushi village has been aggressively promoting local children education, since 2015 Asia
children in the aboriginal disadvantaged families, it also cares and visits disadvantaged fam- Cement continuously works with Fushi Community Development Association of Shuolin Township to launch
ilies, elder people who live alone. Small Sun Tutoring Class was formed by a teacher of an “Aboriginal Young Students After-school Facilitation Program” in Low-Fushi village Cola community,
Shuolin village, Lin Shu, who has been tutoring children from single parent families or raised Shuolin Township. The program is for the purpose of providing a good learning place for students af-
by grandparent for quite a long time, small kids from kindergarden and elementary schools to ter-school time. In this class free dinners and nice learning environment are served to reduce the burdens
youth in junior high schools. of single family and grandparenting family. Asia Cement also donated and established a computer room to
It is Lin Shu’s hope to devote some effort in order to transform the future of the children! enhance the willingness of learning by the children in the tribes.
Since 2018 Asia Cement started to provide resources to help the after-school tutoring, sum- The targeted participants are students from grade 3 of elementary schools to grade 3 of junior high
mer time academic activities and meal services, so that students can receive better learning schools. It is expected that the students can have happy and safe learning and able to enter a good school
and growth. after graduation. The courses offered are not only covering the school studies, but also the traditional cul-
tural courses (tribe language, art painting, music, handcrafts, etc.). Some non-scheduled weekend outdoor
lectures are offered as well. Asia Cement also provides shuttle bus as the transportation for the children.
52 S C
 Green 4.3
Special Column of Local People Interviews
A story of a positive transformation –
An interview with after-school tutors Huihua Lin and Huijei Lin

Huihua Lin and Huijei Lin are sisters from a subcontrac- the safety of the children when they are outside, if we have that they keep making progresses in their learning. “If
tor of Asia Cement. After joining Asia Cement, they devot- cars in that day we will drive them home, otherwise we will students can have some growth and even can apply to
ed themselves to after-school tutoring, 6 years now for the walk hand-in-hand and send them home one by one.” get scholarships, that is the most practical help to them
younger sister and 3 years for the older one. In the normal “In addition to the daily learning, every week we will in their future development. For example, we have two
days after the work they directly go to the tutoring class invite teachers to offer culture heritage lectures includ- students who were raised by their grandparents, due to
helping students for their school-learning. ing aboriginal tribal handicrafts. Each semester we will their growing environment they selected and passed the
In the 2017 CSR report this journel interviewed and re- offer free outdoor activities, such as in 2019, we brought entrance examination of Tsuji university which is tuition
ported a tutor Meilin, she formed a lower Fushi village ab- children to Ocean Park to learn oceanic ecology, and free. The two students are in the same grade and they
original students after-school tutoring class due to the fact took them into the water to experience fish and clam usually encourage to each other. Today if they have
that in the tribe many children are raised by grandparents catching. We hope that in addition to regular courses, time they will come back to our big family to see us and
or grow up in disadvantaged families, these children often children can better understand the culture of our tribe or other children. It is a heart-touching feeling whenever
are alone at home. “In the beginning, teacher Meilin was environmental protection, allow them to get in touch with the kids in the tribe keep carrying out the interacions.”
not able to find tutors, so she asked us to help. We are all knowledges in various aspects.”
from the tribe and hope the childen in our tribe can strongly “It is not easy to find tutors in our community to take
grow. Later we arranged our time and came to tutor the care of these children. We take care of them so that
class. We normally go to the class after work to replace they don’t hang around outside, not to pick up bad hab-
teacher Meilin.” bits, and make them like such an environment, plus hav-
“There are around 30 students now in this tutoring ing happy learning and growing.”
class, from elementary school to junior high school, differ- Thinking back the interactions with the children,
ent tutors guide courses from different grades. Normally sometimes I am touched by small things. “Children will
when we come over to the class after work, it is the dinner write cards to thank us, the tutors, especially for the chil-
time for students, after their diiner we start to look at the dren who do not have mothers will treat us like moth-
progress of the learning. Sometimes it gets a little late until ers. In the Mother’s Day, they will send cards and small
8pm, then we will ride children home. We will worry about things to us.” In these years, the happiest thing is to see

ASIA CEMENT CORPORATION

CORPORATE SOCIAL RESPONSIBILITY REPORT 53
 Green 4.4 Social expenditures and integrated Endeavoring to the integrated
community development community development for local
communities
Contributing to communities and caring the disadvanatged
Asia Cement is wholeheartedly contributing back to the local communities with the In recent years Asia Cement takes the responsi-
funding of supporting the community activities ranked at the top. It aggressively drives bilities of caring beach, windbreak, road lamps, road
trees, parks, phoenix trees on Tai #9 provincial road, Received a gold award from Hualien County
all operational sites to participate the community events and to care the development government with the garden city activity held
of the communities. Through Asia Cement Service Center and Hualien Plant to perform Tai #3 romantic provincial road, in the hope of making by Hualien Plant
the caring to the disadvantaged in the community, the Company officially organized some devotion to this piece of land.
the “Hualien County Asia Cement Bodhi Charity Association” to proactively undertake
local community caring. In 2019, the total expensitures of social care and integrated
community development was NT$50,200,000.
Hualien County Environmental Protection Bureau
held a contest “Happy Hualein, Garden City”, The
2% 1% employees of Asia Cement Hualien Plant worked
with the gardening workers of the eco-park jointly
caring the surrounding landscape by planning, soil
preparing, planting, irrigating and maintaining. One
4%3%
of the corners on Tai #9 road leading to Taroko
Gorge was enriched with multicolors and ranked at
5% top of the enterprise catergory, a gold award was Helping to clean up mikania micrantha

honored.
Presbyterian Church in Taiwan TaiRuGe office was
established for 60 years now, church members
together with Asia Cement’s employees cleaned
22% and removed all “mikania micrantha”, so-called “the
63% green killer, on provincial Tai #9 road, to avoid the
damage to the native tree species, a practical action
to guard the native plant ecological system in Taiwan.
Asia Cement Hualien Plant officially entered an
agreement with Hualein Forest Administration of Hualien Plant joining the beach cleaning activity
Forest Bureau in 2019 to take the responsibility
Contributing/participating Eco-environment Culture/Education/ of #2617 windbreak with the size of 43 hectares
community activities protection Art and Culture Activities located in ShuinAn village, Hsinchen Township of
Local volunteer service Donating goods
and material
Assisting/ participating
the disadvantaged groups
Hualien County. The chief plant manager of Hualien
Others Plant Ze Peng Chang led more than 20 employees
took part in the beach cleaning activity together with
Asia Cement Social expenditure Performance(Ten thousand) the local residents.
Note 1: Asia Cement and its subsidiaries included.
Note 2: The eco-environmental protection included eco-park (including Yuan Ze Hsu Memorial Founda- Since 2003, Asia Cement Hsinchu Plant has
tion) eco-environmental education, the greenry of community schools and ecological construc- joined the program of adopting enterprise roads in
tion. Hsinchu county. For 16 years now the Plant has
Note 3: The volunteer services are the community services initiated by Asia Cement including cleaning
and maintaining the environment of Hualien local institutes and community,cleaning beach, tu- been assisting Henshan Township office where the
toring for elementary schools and aboriginal children, water-proof and electrical lighting work, re- Plant is located and Hsinchu County government to
pairing community houses, constructing a new kitchen in the caring station, supplying mountain maintain and clean provincial Tai #3 road in order to
spring water, etc. (personal volunteers not included), taking hourly-wage (the average salaries of provide a clean city and a romantic Tai #3 road to
the full time employee except supervisors) to estimate the monetary value.
local residents. Received an appreciation certificate from
Hsinchu County government with the adop-
54 S C tion of Romantic Tai #3 road.
 Cement industrial chain realizing the link French Center Pompidou coming to
between industry and academic sector Hualien! Deep cultivating aesthetics
It has been a long time now that Asia Cement and its education together with Asia Cement
subsidiary Ya Tung Ready-Mixed Concrete open their facil-
ities for the visits of academic groups. During the visits they For a long time paying close attention to environmen-
present in detail the manufacturing process operation and tal education, Asia Cement cooperated with udnFunLife to
technology realization. All employees have received profes- invite French Center Pompidou “Mobile Art Promotion” pro-
sional training from the companies and cumulated sufficient gram to Taiwan. Starting from Eastern Taiwan Hualien as
work experiences, hence, competent to carry out the work. the first stop, Asia Cement invited close to 100 students to
They are able to allow students to understand how to apply attend the event, with the hope of cultivating the root of art
the knowledge learned from classroom to the actual opera- from bottom up, by way of unique French type of aesthetics
tion. Asia Cement and Ya Tung Ready-Mixed Concrete also to open a new horizon for the children in Taiwan.
donated cement, coarse sand and concrete to students for It was not just static exhibitions and courses, the chil-
exercises and tests in the classroom. The organizational cul- dren were guided by professional teachers to develop
ture of contributing back to the society from enterprises is hands-on creativity and imagination, hence, they could
created through the inheritage of knowledges. create their own pieces. In the courses a special cement
For the purpose of helping students to adapt to workplaces workshop “do-it-yourself with cement” was provided to al-
and to set directions for their career as early as possible, low students using cement and toolings to create building
Ya Tung Ready-Mixed Concrete non-routinely arranges models, so they could learn the properties and production
nearby schools to visit its facility to share the latest concrete process of cement, and understand that cement is closely
technique. In 2019, a total of 273 students from 5 schools relating to everyone’s daily life. Cement can not only be
in 6 rounds visited the facility, 4 schools were provided used for building bridges, paving roads, constructing hous-
concrete experimental material and sites free-of-charge es, but also for making flowerpots, watches and ballpens.
to promote the mood of research through the interchange Students were able to sense that cement was not just cold
and to enhance the quality of domestic talents in the
and hard, rather a material with warm feeling. An elemen-
construction industry.
tary school fifth grade student Chang said that he never
Asia Cement Hualien Plant and Hsinchenshan mining site thought that it was so much fun, cement could have so
were opened for the visits by academic groups. The topics
many variations.
of mining site geographical lectures, natural resources and
environmental lectures, material and resource engineering, The most important thing for Asia Cement
world aboriginal higher education and youth aboriginal laws is to strive for the sustainable development
were presented during the visits. In 2019, a total of 471 hand-in-hand with local tribes! Comparing to
people visited the mining mountain in 12 visits. children living in urban areas, the education-
al resources available to aboriginal students
are relatively few or insufficient. Asia Cement
has always put the children of the tribe in its
heart, it is expected that through this event
the children in Hualien are able to have the
same opportunity of aesthetic education as
that of the children in Taipei, not to be con-
strained by resources and cannot develop
their potential, so that the children in remote
villages can be seen of their creativity.

Visited by Dept. of Natural Resources and Environ- Visited by Aboriginal Youth Legal Camp of “Mobile Art Promotion” program to Taiwan
ASIA CEMENT CORPORATION
mental Studies, National Dong Hwa University National Dong Hwa University
CORPORATE SOCIAL RESPONSIBILITY REPORT 55
 Management Guideline

05
- Policy Goal and target Evaluation method
Providing free tour and lecture of eco- Managing through the interactions and Two qualified staffs for environmental
logical environmental education. feedbacks from the visitors, a lecturing education, at least 8 environmental
SUSTAINABLE and environmental management program education lecturers for internal train-
is launched to provide visitors enriched ing.
ENVIRONMENTAL experiences of sustainable environmental
education.
Review the quality of visiting and
lecturing based on the numbers of
EDUCATION Providing resources
visitors, interactions and feedback
sheets.
Plan to perform an effective evalua-
Environmenal education site in Asia Cement Eco-park: Asia Cement Eco-park is
tion based on the status of implement-
composed of a butterfly eco-park, stick insects special park and a leisure garden to
ing the management of Eco-park.
provide free ecological conservation and environmental education.
10.65 times of benefit was generated
Providing visit members butterfly hats and cards as the facilitating education re-
based on the SROI evaluation.
sources.
Asia Cement Eco-park official website providing a database covering butterflies,
stick insects and plants to be accessed momentarily by people to attain information.
In 2019, the traveling exhibitions outside of Hualien was held around five counties
and cities to allow adults and children directly learn ecological education in cities.

Journey of implementation and awards received by “Deeply planting the seeds of

sustainable hope – Asia Cement’s eco-environmental education program”

2004~2012 2013~2017 2018~2019 2019~2020

Ecological education Future sustainable
Pre-planning Stage 1 opening Expaning the opening expanded to the whole Taiwan planning
Renovating the large butterfly
Constructing an Asia Cement Building a large butterfly screen room Asia Cement Eco-park Tribal community
Leasure Park screen room Building a butterfly breeding traveling exhibitions. integrated development
Creating a phoenix tree forest Creating a stick insect small room
Building an Asia Cement zone Dedicated eco-park website
butterfly net Creating an eco-park blog Creating a stick insect special
area

An award of excellent
Performing SROI analysis and Total 100 days of travel covering 5 counties and cities.

2014 2018 2019

environmental performance verification of
education granted by eco-environmental education Receiving Social Inclusion Award
Hualien government from Taiwan Sustainable Energy
Received the “Green Leadership Foundation
Creating environmental education Category” of “Asia Responsible
Enterprise Award (AREA)”

2013~2017
venues Received the “Green Leadership
Category” of “Asia Responsible
Quailfied environmental educators Enterprise Award (AREA)”
Trainning employees to become tour
guides
Planning and opening the visits to park

56 S C
Sustainable Environmental Education in compliance
with UN Sustianable Development Goals—Highlights

Deeply planting the seeds of sustainable hope Comprehensive environmnetal education lecturing material
35 cases of caring the disadvantaged people in Fushi village.
Providing high
170 cases of quality and
emergency free eco-environmen-
assistance provided to Fshi villagers.
SDGs 4 tal SDGs4 Asia CemenEco-park official website providing
4 11 391education
householdsforofthe learning
Fushi villageofvisited
relevant knowl-
to build the neigh-
QUALITY
NO POVERTY
EDUCATION
SUSTAINABLE
CITIES AND SDGs 11.7 edge to enhance
bourhood the education
communication channel.of sustainable 4 QUALITY
12 RESPONSIBLE
CONSUMPTION SDGs 12.8
complete and free ecological lecturing material,
Created in Sep. of 2018 and browsed by approxi-
COMMUNTIES
development and the mode of sustainable living. EDUCATION AND
PRODUCTION

SDGs 12.8 mately 200,000 people by the end of 2019.

12 RESPONSIBLE 13 Providing safe, barrier-free and effective learning
environment and educational facility.
CONSUMPTION
AND
CLIMATE ACTION
SDGs 13.3
PRODUCTION
Providing free visits to academic institutes, com-
munity residents and general public. In 2019, a
total of 31,708 people received the service of en- Steady Rising-Asia Cement Eco-park traveling exhibitions
vironmental education.

SDGs4
4 11
15
Restoring butterflies and stick insects by the min- Total 100 days of travel covering 5 counties and cit-
SDGs 15.4 ing area.
QUALITY
EDUCATION
SUSTAINABLE
CITIES AND SDGs 11.7
COMMUNTIES
ies, up to 10,000 adults and children experienced
Collecting and growing diversified local native SDGs 12.8
12 13 eco-environmental education in cities.
LIFE ON LAND
plants. RESPONSIBLE
CONSUMPTION
AND
PRODUCTION
CLIMATE ACTION
SDGs 13.3

8 DECENT
WORK AND
SDGs8.9 Eco-park strengthening sustainably-developed
local tourism, creating job opportunities and en-
hancing local aboriginal culture.
ECONOMIC
GROWTH
Speical column of local people interview

17 SDGs17.16 Through multi-cooporation to moblize and share

8 SDGs4
PARTNERSHIPS
eco-environmental knowledge and professional
nursery experiences.
4 QUALITY DECENT WORK
The needs of tour guides’ self-realization to find
FOR GOALS EDUCATION AND ECONOMIC
GROWTH SDGs8.9
new value in the life.
12 RESPONSIBLE
CONSUMPTION
AND
SDGs 12.8
PRODUCTION

ASIA CEMENT CORPORATION

CORPORATE SOCIAL RESPONSIBILITY REPORT 57
 Green 5.1 Deeply planting the seeds of
sustainable hope – Asia Cement’s
eco-environmental education program
In coordination with UN Sustainable Development Goals (SDGs), Asia Cement ex-
pects to deeply root down seeds of sustainable hope through eco-environmental ed-
ucation for the purpose of creating positive changes of enterprises and the society of
Taiwan into sustainable development.
In 2004, Asia Cement Hualien Plant built a leasure garden for the purpose of mov-
ing towards the goal of “building the plant as a park”. In 2013, it upgraded the park into The goal of the vision and the implementation of the planning of
an environmental educational site to provide sustainable environmental education and
free visits to the public. In addition, it also provided the guide and eco-education lec-
“Deeply planting the seeds of sustainable hope –
tures in order to fulfill the mission of sustainable development in “building a sustainable Asia Cement’s eco-environmental education program”
green homeland”. The “Deeply planting the seeds of sustainable hope – Asia Cement’s
eco-environmental education program” was kicked off.
15 12 11 4
12
The goals of
External entities involved in “Deeply planting the seeds 4 11 15

Ensuring the sustainable development of biodiversity in the mining mountain and the park.
information.
Ensuring the general public to have the recognition of gaining the sustainbale development

Providing the general public to use safe and green public spaces.

Ensuring a fair and high quality sustainable eco-environmental education.

UN RESPONSIBLE
sustainable QUALITY SUSTAINABLE CONSUMPTION

of sustainable hope – Asia Cement’s eco-environmental

EDUCATION CITIES AND AND LIFE ON LAND
development COMMUNTIES PRODUCTION

education program”
External Entity Content of Cooperation The mission of
Asia Cement The top partner in building a sustainable green homeland.
sustainable
development
Yuan Ze Hsu
In 2018 Asia Cement Eco-park was expanded and
Memorial
continued the promotion and planning each year.
Foundation Asia Cement
eco-environ Deeply planting the seeds of sustainable hope – Asia
mental Cement’s eco-environmental education program
education
program
Areas of researches including plant taxonomy,
environmental ecology, natural resources preservation,
education of sustianble development, environmental Over 7000 visitors each year.
The goal of
education, butterfly breeding, assisting the training of eco-environ Planning and installing hardware and software and
Advisors resources in the park.
various environmental education and the installation mental
education Enhancing the promotion of Asia Cement eco-environ
of environmental education facility, providing the program mental education.
consultation of plants, butterfly breeding and
environmental education.
The
The analysis
analysis Analyzing and verifying the benefit of the program through
and verification SROI.
of the benefit Questionnaires and feedback from visitors during the
In addition to receive the guidance from the experts, generated from
the program implementation of the program.
the tour guides interchange with other tour guide units
Others and Natural Education Center each year, to learn new
knowledge and skills of guiding.
Continuing
improvement Continuing to undertake the improvement and the
and sustainable promotion of eco-environmental education.
development of
the program

58 S C
Deep-cultivating eco-environmental
education
Asia Cement actively builds a green sustainable home-
land. For the conservation it utilized the unique mining
mountain vegetation greenery technique of Hualien Plant
to create an Asia Cement Eco-park in a different location.
To construct a comprehensive eco-environment education Butterfly Eco-park Stick insect special zone Leisure Garden
park, Asia Cement combined an open-type butterfly park, a
mimic natural butterfly park, a stick insect special zone and The biggest privately-run butterfly eco-park A closed-type stick insects screening room A native plant garden with up to 250 species
a leisure park, a total of 3 hectares. It applied the core capa- in Taiwan with approximately 35 species was built to incubate several tens of local was built, the species covering the ones
bility of mining mountain vegetation greenery technique and of frequenctly seen butterflies. A butterfly and foreign stick insects. In 2019, the living from closer to sea level to mountain plants
built one of the excellent environment ecological education breeding room was built and the breeding space for stick insects was expanded to al- with the height of 3,000 meters. The plants
sites in Taiwan as the base of eco-environmental education. and incubation were evaluated according low visitors get closer to the insects good at were planted in separate areas by way of
Each year it attracts people to visit and learn the knowledge to the environmental loading capacity of the camouflage and find them. scientific phytotaxonomy to separate their
of sustainable environment. park. In addition, a naturally –opened habi- catogeory. It is convenient to observe the
tat was created to provide a survival environ- features and differences of the plants. For
Eversince the openning for visiting, Asia Cement Eco- ment suitable for butterfly Troides Aeacus, a the geneal public who like to understand the
park has been collecting comments and opinions for the second-class national conservation species. native plants in Taiwan, offshore islands and
sustainable development of the park. Since 2018, the Eco- The conservation species of butterfly are of- different altitudes, this garden is a very good
park expanded the strength of environmental education ten seen flying around the park. place for observation and teaching free of
by inviting experts and scholars to provide the training of charge.
various environmental education and the installation of en-
vironmental facilities in the park, to build an excellent envi-
ronmental education site in Eastern Taiwan. In order to pro-
vide more comfortable experiences to visitors, the Company
sequentially upgrades and expands facilities in the park. In
2019, a total budget of NT$10,700,000 was used for eco-en-
vironmental education.

New Logo

Closely working with local institutes, Asia Cement invit-

ed the students of Department of Art and Design, Dong Hua
University, to design a new logo for the Eco-Park based on
Asia Cement’s power of eco-environmental education. The
overall image of logo included native plants, butterfly and
stick insects, taking butterfly as the main body and a stick in-
sect hiding on the upper right wing which is good at mimicry.
Each wing is composed of the element of leaves to repre-
sent Asia Cement’s mission of sustainable development in
vegetation greenery and eco-environmental education.

ASIA CEMENT CORPORATION

CORPORATE SOCIAL RESPONSIBILITY REPORT 59
 Hualien Chapter of The Society of Wilderness

A training of young children to Annual conference of World Abo- Academic interchange event from
Sprouting and diffusing eco-environmental education become seed talents of environ- riginal Higher Education Alliance UK High School Education
mental protection and water/soil
conservation, held by Environment
Bureau of Hualien County.

Asia Cement expanded its eco-environmental education sites

from the Eco-park (built in 2003) to local schools and institutes. It
provided herbivorous and nectariferous plants to assist construct-
ing butterfly eco-park and went into campus to conduct eco-envi-
ronmental education, diffusing the long-time cumulated energy of
mining mountain vegetation greenery experiences to campusfor
further sprouting. In 2019, a “Steady Rising-Asia Cement Eco-
park Traveling exhibitions” was launched and traveled around 5
counties and cities in 100 days, to allow adults and children directly
receive ecological education in cities. Asia Cement extended the
learning sites to various places, not just constrained in the eco-
park. It is expected to continuously spread the seeds of sustain-
able hope and to be the cornerstone of realizing the sustainable
development of environment.
Tree planting event of SuBuDaKenBa Association, Shuolin Township A fun outing by Ward 2E, Mennonite Christian Hospital Shou Feng Branch
Local community development
Asia Cement provides its Eco-park, a natural and beautiful envi-
ronment, to local institutes, associations and community residents for
holding events. In addition to eco-environmental education, residents
can attend social and interchange activities to get healther both physi-
cally and mentally, furthermore,more converged together.
In 2019, SuBuDaKenBa Association of Shuolin Township held a
workshop of promoting tree planting for the greenery and loving the
tribe, supervised by Hualien Forest Administration of Forest Bureau,
co-organized by Taroko Management Office and Asia Cement, resi-
dents of Fushi village attended the workshop to jointly promote eco-
logical conservation. An eco-environment lecturing was offered in
Asia Cement Eco-park to teach residents the planting of native tree
seedlings and to promote water/soil conservation and greenery for lo-
cal community. SaKaDun Presbyterian Church Hualien Tulip Movement Disorder Association

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Asia Cement eco-environmental education services Environmental education
General public 2,972 28,826
Asia Cement strives for the restoration of the mining mountain, furthermore, it
Learners of environmental education 56 1,991
elevates the environmental awareness to education level and expecting to make
Tribal community residents 19 891
contributions to environmental education by assigning 2 staffs who are quali-
fied for environmental education, 8 environmental education guides, 7 staffs for Total 3,047 31,708
maintaining environmental education venues and 3 executive supervisors.
Asia Cement environmental education includes eco-park, mining mountain
visiting and mining area guiding. After the reconstruction of Asia Cement eco-
park including stick insect special zone, butterfly eco-park, leisure garden in

Good Comments
September of 2018, a lot more people visited the park after its re-openning to
the public. An eco-environmental education recognized by the public
In 2019, a total of 31,708 people received the service of environmental edu-
In addition to the direct and good comments after the visits, the visitors will
cation, 3 to 4 times of the numbers in the past years. A total of 79,360 visitors
also go online to the official website to post the recogniztions. Employees are
since 2013, the targeted total of 50,000 by 2019 was reached.
encouraged and energized everyday during the work. In the future, good quali-
ty eco-environmental lectures will be continuously provided to the general public
to keep spreading the seeds of sustainable hope which will generate10 times of
80,000 79,360 benefit, a sustainable development by realizing the mission of “creating a green
homeland of sustainability”.
70,000

60,000
Name of visitor: Calvin Lin
Time of message: 2019-07-21 07:54:22
50,000 47,652 Type of message: Open
Rating:

40,000 35,909 Message: We were the visitors on July 11th.. We like to thank the enthusiastic
assistance and care from the security guard at the front gate. We also like to thank the
28,899 31,708 wonderful tour guidance from Mr. Juin Ming Chen who vividly introduced to everyone
30,000 the ecological environment of butterflies and stick insects. He was under the sun in the
23,624 hot summer which made him exude sweat soaking through his long sleeves. He took
photos of everyone throughout the tour to record the precious moment of our small
20,000 family’s holiday activity. In addition, he cordially took the kids to actually experience the
wonders of the nature and to learn to observe the change and growth of butterflies. It
11,743 was a very meaningful life education for the kids. We offer our appreciation to Mr. Chen
10,000 7,239 5,275 7,010 and the staffs in the eco-park for your devotion which showed to kids an excellent
demonstration of being friendly to natural environment.

0 Name of visitor: M. Chuo

Time of message: 2019-07-01 14:01:42
2015 2016 2017 2018 2019 Type of message: Open
Rating:
Person of Cumulative Cumulative target Message: It was a last minute decision from my wife and I to visit the park. Although
years person person only two of us, the security guard Mr. Fu still cordially welcomed us and guided us to a
parking lot. He asked Ms. Sung to give us a tour guidance, she was very enthusiastic
and professional regardless that it was only two people. Hence, we had learned and
enjoyed a lot in this visit, what a happy and intellectual trip. We like to thank Mr. Fu and
Ms. Sung for their assistance! We also like to appreciate the effort of Asia Cement
Asia Cement Environment Education Performance Group in conserving the ecological system.

ASIA CEMENT CORPORATION

CORPORATE SOCIAL RESPONSIBILITY REPORT 61
 Green 5.2 Complete Environmenal Education
Lecturing Material
Environmental education refers to an organizational and systematic educational
method for the purpose of realizing sustainable development, which includes six core
learning elements: preservation of natural resources, environmental management,
ecological theory, interaction and interdependence, environmental ethics and sus-
tainability. The venue of sustainable education is located at Asia Cement Ecological
Park, which provides the environmental education of ecological preservation.
Asia Cement Hualien Ecological Park received an award of excellent environ-
mental education from Hualien County government in 2014, a first private organiza-
tion receiving this honor.

Ethnic plants
Plant and human Building habitat
Local aboriginal tribe Impact of people to eco-system
Features of local culture: Taroko tribe, Building relationship: Taroko tribe
Application of environmental resource: Operation: Building the foundation
ethnic plants, efforts of preserving of man-made environment
local eco-system and culture. Managment: Application of native and exotic plants Visiting the park and online database
The ecological park of Asia Cement is the best place for providing environmental
education. Free visits and professional guide are offered to community residents and
general public. Joining with the surrounding social resources, Eco-park hired local
Taroko aboriginal residents as the “Daddy of Butterfly”, “ Mommy of Stick Insect” and
Local people tell local stories “Good Partners of Native Plants”. With the arrangement of local people telling local
stories, each visitor can enjoy learning the excellent and down-to-the-earth local life,
an unique ecological journey.
Furthermore, Asia Cement installed an eco-park officical website including the
ecological information of butterflies, stick insects and plants, tidbits of visits, messages
and rating, and making online reservations, a set of free ecological lecturing material
to the public. We also have the discussion and the exchange of opinions with people
on this platform. Asia Cement Eco-park official website vividly provides ecological
Using ethnic plants to depict information to the public, so that adults and children can immersively learn a lot of
local humanity activities knowledges at home. The official website was installed in September of 2018 and
browsed by a total of 200,000 visitors by the end of 2019, a highly popular website.

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Ecological database of the park
An ecological database is created in the
blog to introduce the butterflies, stick insects
and native plants cultivated in Asia Cement
Introducing 8 families and 38 species of butterflies according to family and
ecological park. It also includes the habits of
species index.
each species of butterfly and stick insect, as
well as the pictures of dwellings in the eco-park,
hence, visitors can view the related information
on the blog of the eco-park after visiting.
Since the time of visiting is different, the
blog is able to comprehensively introduce the
forms of butterflies from egg, larva to adult. For
native plants, they are also comprehensively
introduced by the pictures of the tree shapes,
buds and fruits. Visitors are able to gain deep Index by plant families Introducing stick insects in 3 family and 11 species
understanding about the eco-system.
The latest information and news are provid-
ed by the official website, the ecological knowledges at each corner of our park are converted
into funny and vivid daily stories sharing with everyone. Hence, both adults and children
are able to enjoy and sense the beautiful eco-environment in Hualien on theircomputers or
mobile phones.

Asia Cement eco-park website

Using Taiwan’s phonetic symbol index to introduce native plants including
116 families and 407 species.

ASIA CEMENT CORPORATION

CORPORATE SOCIAL RESPONSIBILITY REPORT 63
 Green 5.3 Steady Rising-Asia Cement
Eco-park Traveling Exhibitions
In 2019, the 70th anniversary events of Far Eastern Group were mainly fo-
cusing on charitable activities. Asia Cement specifically initiated an activity of
Far Eastern 70 Steady Rising-Asia Cement Eco-park Traveling Exhibitions by
taking the stick insects in the park and traveling around Western Taiwan to ex-
pand ecological education from Hualien to other places. Hence, both adults and
children are able to learn very different ecological knowldeges in cities.
This 100-day traveling exhibition covered 5 counties and cities, mainly to
show the stick insects, also called Master of Camouflage, in Asia Cement Eco-
park. Under the guidance of 6 environmental education guides from the park,
over ten thousand adults and children were personally experiencing ecological
education in cities.
To have a proper ecological traveling exhibition, Asia Cement Hualien Plant
specifically invited ecological expert to escort these stick insects in a chartered
vehicle to avoid uncomfortable situation occurred to the stick insects. The breed-
ing environment for stick insects is required to maintain at proper temperature
and humidity, thus, inside each exhibition cabinet is equipped with fogging ma-
chine to maintain proper condition for the growth of stick insects. Sufficient plants
were also prepared to avoid the shortage of food for stick insects.

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Spread eco-environmental education to A small story of breeding stick insects in the eco-park
the nation
The traveling exhibition held by Asia Cement Eco-park was 10 types of stick insects are bred in the screen room of the Eco-park, we will check the sizes of the in-
moved out of Hualien and held in Northern, Central and South- sects, larva or imago, for the ones not suitable to be disturbed, we will place them in the exhibition cabinet
ern Taiwan, hence, people can bring their children personally for visitors to see. Currently, a total of 15 stick insects in 4 species are outside of the cabinet, everyone can
observe multiple appearances of stick insects in a city nearby come to the screen room to find where they are hiding!
them to understand the growth journey of stick insects. In addi-
tion to the presentation of the guides from the park, Asia Cement The breeders in the park clean the stick insect living area every day, and check if they have laid eggs.
planned events based on the space of each venue. Different Both insect eggs and pees are in these dark things on this tray! Our breeder picks up stick insect eggs
non-routine activities were also arranged in the exhibition hall, everyday, when you come visiting the park you can try to see if you identify them.
such as experiencing camp, eco-pastel bookmark hand-draw-
ing. During the traveling period, a total of 517 children from 13
kindergardens and elementary schools were invited to the ac-
tivities, plus 600 people registered for parent-children activity. A
total of several tens of thousand adults and children participated
the events including the general public who came on their own.
Stick insects are the masters of camouflage, they are not
easy to be found in natural environment. The appearances of
stick insects are revealed through professional explanation by
vivid and funny story telling. It is expected that the ecological
education can be rooted in the mind of children through the ed-
ucational and recreational activities. For the people who missed
the traveling exhibition, they are welcomed to visit Asia Cement
Hualien Eco-park to observe and experience more complete
ecology of stick insects, butterfly and native plants. The traveling
exhibition held by Asia Cement Eco-park was in the hope of con-
veying the concept of “ jointly creating better future, moving for- Stick insects hide and seek Breeder picks insect eggs The tray of collecting stick insect
eggs and pees
ward hand-in-hand” , to demonstrate the determination of Asia
Cement in contributing to the society and continue to expand the
positive influence.

Stick insects screen room lecture Insect eggs? Pees?

ASIA CEMENT CORPORATION

CORPORATE SOCIAL RESPONSIBILITY REPORT 65
 Green 5.4
Speical column of local people interview
A story of a positive transformation –
An interview with Wen-Cheng Tan, a guide in the Eco-park
In 2017 CSR report Wen Cheng Tan was interviewed for the tive, no ginsheng smell if it doesn’t eat, the body becomes flat if it guests who received only a portion of the information which did
first time. He usually comes to the tribe to care the disadvantaged, doesn’t drink. So we need to immediately check the humidity in not represent the actual situation, we would explain to them about
furthermore, he contributes his expertise of eco-environmental ed- the environment and the food situation. In some exhibition places, Asia Cement’s current effort to Hisnchen mining site based on the
ucation in the Eco-park. In 2019, he joined the guiding force of we found that the stick insects were not energetic, we tried to find fact. After the rational interaction they all had different impression
Far Eastern 70 Steady Rising-Asia Cement Eco-park Traveling the cause for a long time and also took the leaves to test, we found to Asia Cement and came back again to have further interaction.
Exhibitions and brought our treasure of the eco-park to start a trip that there was pesticide residual on the leaves. We then learned I hope to provide accurate information to turn around the wrong
to Western Taiwan. that some of the local garden shops spraying pesticide on plants, idea of people!”
“The purpose of the traveling exhibition was mainly to show hence, when we bought local guava trees, we needed to expose “Some guests encouraged Asia Cement to come out and hold
our stick insects. The idea came from people visiting our Eco- them for a long time to have the pesticide evaporated before using more events, people could only get the wrong information from
park, they gained a lot of ecological knowledge about butterflies, them.” internet if they were not the local residents. Asia Cement came out
furthermore, they were very impressed about stick insects. If the The stick insects were replaced every week based on the con- to communicate with people in positive manners to allow everyone
ecological education is constrained in the park in Hualien, only dition when the staffs from Hualien Plant coming to the exhibition knew that Asia Cement was doing very good on eco-environmen-
limited people can learn the knowledge. Therefore, we started to to do the presentation. It was not every day that the staffs from tal education and mining mountain restoration, thus, to convert the
travel around various counties and cities to hold exhibitions.” Hualien Plant were in the exhibition, the local colleagues of our impression of the public.”
“The entire activity was planned and arranged by our Eco-park Group actually offered a lot of assistance. They also were involved We were able to directly interact with people in various areas
group including the transport of living bodies, the coordination of in the learning and helped to do the presentation or the event. “If through this traveling exhibitions, to learn and accumulate experi-
assembling and disassembling exhibitions. The truck driver was the venue is in the department store of our affiliated companies, ences and to gain a lot of positive benefit. “Many people never saw
well trained to protect and ensure the safety of stick insects in our colleagues of the Group, such as sales ladies, would also help stick insects before, when they saw them in some outdoor places,
the boxes during transporting. In the period of exhibition in each to introduce the exhibition, although they were afraid of insects in they scared about them. We explained to the visitors to let them
place, we closely watched the situation of the stick insects. Ev- the beginning, later they all loved them very much. The security understand the importance of ecology and to enhance the concept
eryday we filled up water and used indoor humidifier to maintain guards also helped to watch the stick insects and reminded people of eco-environmental protection which led to positive benefit. After
the humidity in the air. We also put ferns in there to observe if we not to touch them. The colleagues of the Group helped each other, visiting the exhibitions, many visitors inquired other sessions and
need to increase the humidity, and if the wind is too strong at the a very nice feeling of accomplishing a task collectively, a feeling of invited other people to visit, or even directly visited Asia Cement
air outlet.” In the beginning we were facing big challenges, such having a lot more partners. We made a lot of friends in this trip Eco-park in Hualien.” Asia Cement keeps investing in eco-envi-
as long-distance transporting, the layout of the exhibition floor. which gave us more energy to devote ourselves.” ronmental education resources to continuously spread the seeds
We rolled and learned many things when facing challenges. “For During the exhibitions, occasionally we would encounter the of sustainable hope.
example, siphloidea sipylus, a type of stick insect, is very sensi- visitors who might still have some misunderstanding to us. “Many

66 S C
Full of surprise and joy in the first day of work
by seeing so many butterflies flying around

A story of a positive transformation –

An interview with Chia-Luin Song,
Being praised for the first guiding
a guide in the Eco-park

Chia-luin Song, a new guide in the Eco-park, joined Asia “In order to become an official guide, I was required to be of butterflies, from eggs to pupa and then to butterfly, the jour-
Cement just up to one year. She never grew flowers and plants tested and certified by our Section Head Mr. Lan. My supervisor ney of their life. I deeply learned the ecological knowledge and
in the past in her life. Initially thinking of getting closer to home and colleagues had tought me some knowledge, my compa- could submit my homework to school! We can provide such a
to take care of the family and to grow some flowers and plants, ny provided me some information to learn, I also bought some good teaching environment, I am so proud of the eco-park that
she left the job as a boss of a betel nut shop and joined Asia Ce- books to read or browe some information online. Whenever we work for!”
ment Eco-park nearby her home. “I was thinking of changing an there was something I did not understand, I would ask people, I often feel the joy of life working in the park, because the
environment and tried to see if it fited me. Although I was hired one month after the preparation I officially became a new guide eggs and pees of stick insects are blended together, we pick the
by a hotel at the same time, but I selected to join Asia Cement. in the park.” eggs one by one and put on a tray, then incubate them under
In here I don’t need to drift around anymore and can settle down “The most impressive guest was a retired officer who was in proper temperature and humidity. “I feel that I am the mother of
in my village. People in the tribe are aging and children are his 70s. He made a reservation with me after visiting that in six stick insects, they are like my kids, when it is cold or typhoon is
raised by grandparents, not a good situation.” months he was going to bring his 16 retired colleagues to visit coming, I will worry them. I feel so happy when I see the incu-
The first day on the job, she was led by Specialist Chen the park. On that day their arrival was late due to the delay on bation is successful!”
into the Eco-park. Although living in this village, but she never the road, and it was already over my scheduled time of doing Recalling that in the beginning her mother was very much
came here before. “I saw that butterflies flying around in the the guiding, I was working on something else in the park. Upon against this job, almost having a family revolution, because the
whole park, so beautiful! In the beginning I was afried that I the arrival our security guard explained to them that at this seg- mother thought that it was a very difficult job for a girl work-
was not capable of doing this job, could I do it? Specialist Chen ment of time it was another colleague who would offer the same ing outdoor under the sun plus insects, it was much relax and
encouraged me by saying that if we could do it, so were you! good presentation. However, they replied that if it was not me to easy working in the front desk of a hotel. “After being a guide
So I started to learn and do to gradually know how to do it.” I guide them, they rather not to visit and wanted to leave. It was in the park, several times the senior people in the tribe visited
started from maintaining the environment and planting flowers so embarrassed to my colleague, but on the other hand, I was us, they went back to the village and praised me by telling my
and grass. I smell the soil and the fragrance of grass everyday, quietly proud of myself being recognized! After the visit every- mother that I was so good at doing the presentation! Later my
although it was a hard work but I feel so comfortable both phys- one praised that “today we have seen something we never saw mother was able to understand the sense of achievement I was
ically and mentally. or found before. In the past we only saw these in newspapers, pursuing.”
After one month of work I had my first chance of doing the magazines or specimen in a cabinet. Now it is so close to us, in
front of our eyes, showing such an ecological vitality!” Hearing The feedback and interactions from the guests satisfied us
guiding to visitors. “One day suddenly there were many groups the needs of self-realization and allowed us to find new value for
of visitors showing up, we did not have enough guides in the the words from these senior people who are so experienced in
their life, I feel that the job I am doing is so meaningful!” our life. “Asia Cement provides us this work environment to al-
park, so the teacher told me that it was ok just to say the things low us participate the restoration work, as the employees we all
I knew. I was able to remember some by listening to the pre- “Another very impressive visitor, a single mother from Tai- feel the sense of honor when the restoration work is done good.
sentation of our guides in my normal daily work, hence, I guided pei, whose child had a homework from the elementary school I have done a good job in the park and found my confidence, so
a small family at that day and presented to them what I knew. during the long holiday period of Children’s Day, to observe but- proud to be a member of it!”
In the end the visitors praised me by saying that I was doing a terflies. In the beginning, they found a butterfly exhibition but
good job and wanted to take pictures with me! Later they went only showing specimen, the child wanted to see live butterflies.
to our eco-park official website and posted a message to thank Later they found our webwite, early next morning they drove
my guiding. I was so pleased by such a recognition and very the car from Taipei to Hualien attending my first group at 9am.
happy about the response, it was a great encouragement!” After the visit they told me: We personally see so many types ASIA CEMENT CORPORATION
CORPORATE SOCIAL RESPONSIBILITY REPORT 67
Sustainable Governance Cycling

01 Corporate Governance | 68

02 A happy workplace | 84

03 Management of Value Chain | 106

04 Management of Sustainable Issues | 120

05 Initiative of Sustainable Action | 128

 Management Guideline

01 Practical actions The evaluation of

- Commitmen and initiative financial performance

CORPORATE Promoting the climate change adapta-

tion and mitigation plan each year and
Consistently developing sustainable
and innovative products to gain the
Through the report of CSR each year
to continuously trace the level of goal
participating carbon disclosure project financial and environmental benefits. achievement.
GOVERNANCE CDP. Integrating the upper and lower
streams to develop the organizational
comprehensive financial benefit.

2019 GCSA TCSA Tawian Corporate

Sustainability Award” granted 6 awards

Global Corporate
Sustainability Award
GCSA “Great Practice”

TCSA Top 50 Corporate

Sustainability Report Award

TCSA Corporate Sustainability Report

Award-Platinum
TCSA Corporate Sustainability
English Report Award

TCSA Innovation and Growth Award

TCSA Social Inclusion Award

The award presenting ceremony of “GCSA TCSA Global & Taiwan

Sustainability Award”. Asia Cement’s General Manager Kuin-Yen Lee
(right) received the award from Vice President Jen-Zen Chen (left).
S
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 Corporate governance in coordination with UN SDGs

Corporate and Governance Status Adaptation and Mitigation to Climate Change

8 13
SDGs8.4 In 2018 and 2019, Asia Cement consecutively re- SDGs13.2 Carbon Disclosure Project--Climate Change
ceived the honor of “Green Leadership Category” 2019, Score: B
DECENT of “Asia Responsible Enterprise Award (AREA)” CLIMATE ACTION
WORK AND
ECONOMIC (Enterprise Asia).
GROWTH
The Company was listed within top 6%-20% for
public listed companies (TWSE) from the Sixth
year corporate governance evaluation. Supply Chain Management
Continuing to be included in “Taiwan Corporate Asia Cement requested suppliers to sign com-
Governance 100 index” by Taiwan Stock Ex- mitment letters and non-periodically audited
change. SDGs 8.5 them in order to extend labor and human rights,

8
A constituent of “FTSE4Good TIP Taiwan ESG health and safety, environment and ethical
Index”, an index jointly introduced by Taiwan In- SDGs 8.6
guidelines, and the scope of corporate social
dexPlus Corp. and FTSE Russell. DECENT
WORK AND responsibility to the value chain, to jointly pro-
ECONOMIC
GROWTH mote CSR.

Products and Economic Performance Customer Service Innovative and sustainable product – masonry
cement, lead the trend of new-era construction
SDGs8.3 material with the features of high quality, crack-

8 8
SDGs8.2 In 2019, Asia Cement’s Board of Directors had proof, energy saving and carbon reduction.
approved the cash dividend payout of NT$3 per 20% of plastic material was used by Asia Ce-
DECENT
DECENT share, the payout ratio reached 61% and the divi- WORK AND ment to replace clinker, the overall CO2 emis-
WORK AND
ECONOMIC dend yield was 7.0%. ECONOMIC
GROWTH
sion can be reduced by 16% to reach energy
GROWTH
saving and carbon reduction.

The first company in

the cement industry of
Taiwan received the “Asia
Responsible Enterprise
Award (AREA) two years
(2018-2019) consecu-
tively, received the honor
of “Green Leadership” in
2018 with its “Action Plan
of Green Sustainable
Cement Plant/ Mining
Area” and in 2019 with
its ““Deep Planting of
the Seeds of Sustain-
able Hope -Asia Cement
Ecological Environment
Education” Asia Cement 2019 carbon disclosure project (CDP) Chief Executive VP, Yin-fong Chang, on behalf of the Company, was presented the certificate of the constituent of
rated class B. “FTSE4Good TIP Taiwan ESG Index”.
ASIA CEMENT CORPORATION
CORPORATE SOCIAL RESPONSIBILITY REPORT 69
 Sustainability 1.1 Corporate and Governance Status

The responsible department of the sustainability report Company basic information

Sincerity is the basis of business operation in Asia Cement. The Company strives Types of Information Related Information of 2019
to improve the structure of company governance to realize the responsibility of corpo-
Company name Asia Cement Corporation
rate sustainable operation. A healthy and efficient Board of Direcors is the foundation
of an excellent company governance, a Remuneration Committee and an internal Employees The employees in the main physical operation entities in Taiwan: 1,752
auditing department are established under the Board of Directors to assist the Board
to realize the duty of supervision. Paid-in Capital NT$33.6 billion

In order to ensure a solid sustainable development, Asia Cement’s Board of Di- Founding Date/IPO Date March 21, 1957/1962 (Stock code 1102)
rectors authorized to establish a functional CSR Committee. The president takes
Main Products and Services Various types of “Skyscraper” cement products and clinker
the position of Chairman, the Secretariat acts as the staffs and responsible for the
operation of the Committee, the coordination of projects and the collection of infor- Chairman /President Douglas Tong Hsu/K. Y. Lee
mation. Through the survey of questionnaires and the operation of CSR Committee,
Headquarter 30-31F, No. 207, Dunhua S. Rd. Sec. 2, Da An District, Taipei City
Asia Cement conducts the investigation of sustainability issues, the identification of
significant issues and the boundary. It also engages the stakeholders through various Hsinchu Plant, Hualien Plant Ya Tung Ready-Mixed Concrete Corp
channels to respond the significant issues and the plea of the stakeholders, in order to Ya Li Precast and Prestressed Concrete Industries Corp Fu Ming (Da)
Main Operation Sites Transportation Co., Ltd. Yuan Long Stainless Steel Corp Nanhwa
manage the issues of sustainability and the goal of sustainable operation. Cement Corp Chiahui Power Corporation.
In Hsinchu Plant, the annual output:
The management organizational structure of Asia Cement Production Lines
1 million tons of clinker and 1.05 million tons of cement
In Hualien Plant, the annual output:
and Capacity 4.02 million tons of clinker and 4.35 million tons of cement.
SHAREHOLDERS’ Administration System Asia Cement (China) has an annual output:
MEETING
AUDIT COMMITTEE 26 million tons of clinker and 35.5 million tons of cement.
Technology System
BOARD OF Sales volume of self-produced cement and clinker: 34.485 million tons
DIRECTORS
REMUNERATION worldwide, 3.647 million tons in Taiwan.
COMMITTEE Net Sales Sales amount of self-produced cement and clinker: NT$57.422 billion
CHAIRMAN worldwide, NT$7.628 billion in Taiwan.

President Office The domestic sale of various types of cement and clinker covering the

VICE CHAIRMAN
Markets Served areas of Taiwan, Penghu, Kinmen and Matsu, the export sale covering
Hr Dept. Singapore, Malaysia, the Philippines, Hong Kong, Guam and Hawaii.

Four warehousing depots in Taiwan: Keelung, Taichung, Kaohsiung,

PRESIDENT Csr Committee Warehousing depots Hualien.

Credit Committee Four sale offices in Taiwan: Taipei, Taichung, Kaohsiung, Hualien
General
Plant Manager Chief Engineer VICE PRESIDENT Chief Auditor Sales Network Dealers in Taiwan: 84
Human Resource
Committee
Entities disclosed Refer to Paragraph 8 – Information of the Affiliated Companies –
It Steering in the Asia Cement Annual Report for all consolidated entities.
Committee
Consolidated Asia Cement China issues its own CSR report.
Financial Report

Hualien Plant Hsinchu Plant Purchasing

Dept.
Export Sales
Dept.
Domestic
Sales Dept. Finance Dept.
Accounting
Dept.
Occupational
Safety Office
Secretarial
Dept.
Auditing Dept. Countries and Regions Taiwan, China, Singapore, Hong Kong, India, Vietnam, Guam, Indonesia

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Board composition and operation Evaluating the performance of Board of Audit Committee
Directors
The Board of Directors is the highest governance body For the purpose of realizing corporate governance In Asia Cement’s annual shareholders meeting in
and the center of making significant operation decisions. In and rasing the functionality of the Board of Directors, Asia 2017, three independent board directors with professional
the company charter, it is clearly specified that a cumula- Cement had passed an “Evaluation Method for the Per- qualification were elected, and an audit committee was
tive voting method and a candidate nomination system are formance of Board of Directors” in the board meeting held formed by all independent board directors on August 10,
adopted for the election of the directors. The qualifications on May 13, 2015. The result of evaluation is published on 2017, in accordance with the regulation. The convener is
of the director and supervisor candidates nominated by the website of the Company each year. the indepdendent board director Mr. Da-Jou Huang.
shareholders or directors shall be reviewed by the Board of
Directors in advance according to the regulation, the result
of review shall be provided to shareholders for reference, in
Remuneration Committee
For the details of the composition, operation
order to elect the proper directors and supervisors. Current and remuneration of the Board of Directors,
term of service is from Jun. 27, 2017 to Jun. 26, 2020. All please refer to Chapter 3 “Corporate Gover-
For the purpose of having a healthy company gover-
board directors are above 50 years old. 12 directors, 3 in- nance Report” of the Annual Report.
nance and enhancing the functions of the Board of Di-
dependent directors, including one female. rectors, on August 24, 2011, the board meeting decided
to establish a Remuneration Committee and stipulated
Under the leadership of Chairman Douglas Tong Hsu,
the “Regulations of Remuneration Committee” to imple-
the primary responsibility of the Board of Directors is su-
pervision, through the establishment of various committees Avoiding the conflict of interest ment the performance evaluation and salary policy. The
Committee is responsible for periodically preparing and
to improve the quality of the supervision and the decision
In the “Meeting Rules of Board of Directors” of Asia reviewing the policy, system, standard and structure of the
making. The Board of Directors needs to convene at least
Cement, it clearly stipulates the Article of Director’s recus- director and manager performance evaluation and remu-
one meeting per quarter and listen to the management
al due to the conflict of interest: “if the director or the repre- neration. On May 10, 2019, Board of Directors re-appoint-
team's financial, business reports and review of sustain-
senting juridical person has interest regarding the items in ed Mr. Chi Schive, Mr. Da-Jou Huang and Ms. Mei-shuei
ability issues.
the meeting that may affect the company’s interest, such Lin as members of the Remuneration Committee.
a director may express opinions and answer to the ques-
The remuneration of board directors tions, but shall not join the discussion and vote. Also such
and supervisors and systematic a director shall sidestep the discussion and voting, and
Job
performance of sustainability shall not execute the voting by representing other direc-
Responsibility Description of the main responsibility
tors.” The Board of Directors prepares a self-evaluation
method as the supplementation. Formulating and periodically reviewing the policy,
The remuneration of the directors and supervisors is system, standard and structure of the director and
clearly stipulated in the company charter, it is linked with manager performance evaluation and remuneration.
the sustainable performance of the Company, that is, only Periodically evaluating and preparing the
under the condition that the Company generates profit, can remuneration of directors, supervisors and
managers.
then appropriate no more than 2.5% of the profit as the re-
muneration of the directors and supervisors.

ASIA CEMENT CORPORATION

CORPORATE SOCIAL RESPONSIBILITY REPORT 71
 Compliance of ethic, sincerity and anti-corruption Participating Global Organization of Initiatives
Asia Cement participated global Participated Type of
The operation concept of “sincerity, diligence, thrift, prudence and innova- entities
Global Organization of Initiative
Members
tion” has been deeply rooted in the hearts of the employees. Sincerity refers to organization of initiatives – Global Global Cement and
Cement and Concrete Association Asia Cement Concrete Association (GCCA) Member
open-minded and zealous; diligence refers to hardworking and considerate; thrift
refers to frugal and simple; prudence refers to cautious and accurate. In short, “be GCCA to create the link and dialogue
In 2019, the industrial associations were sponsored a total of
honest, clear, go to the bottom of things and do the best” has been a part of the with the international society. NT$895,000 in addition to the routine membership fee.
corporate culture.

Establish the regulation Abstract

In addition to producing cement products as the core business, Asia Cement partic-

Participating Associations
Article XI (Forbid bribery and accepting bribes) While perform-
ing the business work, employees of the Company are not al- ipates in all types of organizations with different ways in order to connect with all walks
lowed directly or indirectly providing, promising, requesting or of the society for the sustainable development. The associations which the Company
Asia Cement Principles accepting any form of unjust benefit including rebate, commis- engages the actual operations include:
sion, facilitating fee, or going through other channels to provide
of Ethical Management or accept unjust benefit from customers, agents, contractors, Participated
suppliers, civil servants or other stakeholders, with the exception entities Association Type of Members
that if it is in compliance with the local law.
Chinese National Association of Industries and Commerce General Director, Member
Article IV (Prevent conflict of interest): The employees of our Association of Industry for Environmental Protection General Director, Director, Member
company shall handle the company affairs by objective and CNFI Highest Consultant, Director, Member
Taiwan Cement Association General Director, Director, Supervisor, Member
efficient ways and shall not allow him/herself, spouse, parents, Taiwan Cement Union Association Director, Member
children or relatives within third degree of relationship to obtain Taiwan Marble and Stone Mining Association General Director, Member
unjust benefit through his/her job position. In the event that our Asia Cement Taiwan Concrete Institute Chairman, Member
Asia Cement Code of company has the relationship of financing, providing guaranty, International Chamber of Commerce Chinese Taipei General Director
Cemter for corporate sustainability Director
Ethical Conduct transaction of significant assets, or purchasing/selling goods
with the affiliated companies of the individuals mentioned be- Ya Tung
Taiwan Ready-Mixed Concrete Industry Association
Ready -Mixed General Director Supervisor / Member
fore, the associated employee of our company shall proactively Tainan Judicious Creative Architecture Association Member
Concrete
explain to the company if there is any potential conflict of interest
with the company and act according to the behavior guideline of Yuan Long Taiwan Steel and Iron Industries Association Supervisor
the company to avoid the conflict of interest. Stainless Steel Kaohsiung Chamber of Industry Member

Chapter 4 “Service” and Chapter 7 “Evaluation, Discipline and Ya Li Precast Cement Products Association Member
Promotion” clearly stated the specific behavior guidelines. In Nanhua Taiwan Cement Manufacturers’ Association Member
Regulation for the management, the Company emphasizes employee self-re- Cement Federation of Taichung City Industries Member
straint. In the ordinary course of business, the supervisors of de-
Practitioners partements are responsible for education, advising and leading Chamber of Chiayi County Member
Chinese Association of Energy Economics Member
to allow the employee fully understanding the codes of behavior Chiahui Taiwan Wind Energy Association Member
and ethical conducts. Power Taiwan Cogeneration Association Member
Taiwan Electric Power Association Member
The parties accepting the reports:
Measure of Handling Fu Ming
The spokesperson: accepting the reports from the stake- Transport & Taipei Freight Transport Trade Association Member
the Cases of Reporting holders including shareholders and investors. Fu Da New Taipei City Container Transport Trade Association Member
Transport
Illegal and Unethical or Auditing supervisors: accepting the reports from employees,
Taiwan Liquid Ammonia Transport Worker Safety and Member
Dishonest Conduct customers, suppliers and contractors. The ways of reporting Health Promotion Association
include reporting in person, through phone calls and mails. Fu Ming Taiwan Responsible Care Association TRCA Member
Transport
Chemical Emergency Response Association Member
Taiwan Cold Chain Association Member
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 Asia Cement’s anti-competition issue had caused the impact to Chiahui Power and Yuan Long
Anti-competition behavior and its handling status Stainless Steel. The management is based on the regulations and the related legal procedure is
handled by the legal department of the Company. The cases of 2019 are described as follows:

The lawsuit of power procurement contract between nine private power companies
including Chia Hui Power and Tai Poweris still on-going. On May 25, 2017, in its decision
of the first instance High Administrative Court once again ruled in favor of Chia Hui Power.
On August 15, 2017, Fair Trade Commission appealed to Supreme Administrative Court,
on September 27, 2018, Supreme Administrative Court returned the case back to High The preliminary ruling of Five Ready-mixed Concrete suppliers
Administrative Court and ordered it to conduct a new trial of second instance. Currently the the anti-dumping duty applied including Ya Tung Ready-mixed Concrete
Chia Hui case is still under review and not yet being ruled. Yuan Long by Mexicoto to Yuan Long Ya Tung undertook the action of separately and
Regarding the fine, after a number of dispositions and appeals, a letter from Petitions was 0%,the anti-dumping independently adjusting prices which did
Power and Appeals Committee of Executive Yuan indicated that “the appeal procedure shall be Stainless Steel investigation initiated by India Ready-mixed not possess economic rationality. Such a
stopped before the conviction affirmed by Supreme Administrative Court in connection with against Taiwanese stainless concerted action violated the decision of
identifying the violation of Article 14 Clause 1 of Fair Trade Act by the concerted actions of steel products is not yet ruled. Fair Trade Act, it was in the process of
Chiahui Power and ordering Chiahui Power to immediately terminate the action.” administration litigation.

Internal risk control and management Risk identification and corresponding Dedicated Auditing Unit
system measures
Asia Cement has a dedicated auditing department
In order to strengthen the risk management, Asia The risks faced by Asia Cement include environmen- which is responsible for assisting to set the internal
Cemetn’s Board of Directors passed an “Internal Risk tal laws and regulations, and restricting export ratios. controlling system, for the purpose of ensuring the ra-
Control and Management System” and requested the tional realization of the three targets in terms of internal
Board, managers and employees to execute the system. control. It also installed an internal database e-control
Risk Description Countermeasures
The purpose is to promote a robust operation to ensure system for the inquiry and compliance of all employees
the achievement of the goal. Environmental Promoting Asia Cement 2030 sustainable in order to ensure the effective implementation of inter-
Laws, Regulations development path and strengthening the nal control system. In addition, it evaluates the potential
And Awareness communication with the general public. risks of the tasks performed by each department as the
Item Target of Internal risk control system
Ministry of Economic Affairs steadily
basis of drafting and planning the risk management ori-
The results and efficiency of operation limits and lowers the volume ratio of ented annual audit program.
exporting domestic cement accord-
ing to the Trade Regulation through There are four areas to be audited including corpo-
The report shall be reliable, realtime, transparent and rate governance, legal compliance, operation manage-
the years. Asia Cement aggressively
complying to laws and regulations develops sustainable and innovative ment, subsidiary supervision and management. The
products as well as improving the quali-
Laws and regulations compliance ty, to supply the cement volume needed audit program approved by Board of Directors in 2019
Limiting The
by the domestic public construction in was composed of 44 items which were implemented as
Export Volume the future.
Of Domestic scheduled.
Domestically, it stabilizes the market posi-
Cement tion, strengthens the operation efficiency
of current production, shipping and sales
teams, consolidates the mid and down
stream channels; internationally, it con-
tinues to select superior target market,
builds production and distribution base
and develops customers in the emerging
countries to realize the goal of complete
production and sales in order to gain a
stable profit.

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CORPORATE SOCIAL RESPONSIBILITY REPORT 73
 Sustainability 1.2 Products and Economic Performance

Main Brand Products and services Consolidated financial report of Asia Cement
Asia Cement adopts the operation Asia Cement’s products are mainly The consolidated financial report of Asia Cement for the period from 2015
principle of “high quality, high efficiency, the production and shipping of cement to 2019 is as follows:
high environmental protection and low and clinker (96%), followed by blast Unit: NT$1 million
cost”, it has shaped the brand of “Sky- furnace slag powder (4%). The cement
Item 2015 2016 2017 2018 2019
scraper Cement” as the image of best packages are available in both bulk and
cement. bagged, they can be shipped either by Operating evenue 66,288 60,946 64,899 82,741 89,348
The “Skyscraper” cement produced ocean freight or land transport.
by Asia Cement carries the trademark
of excellent products to be trusted. The
Types of customers Operating costs 59,229 52,359 54,728 61,585 63,747
products are very welcomed and used
The types of customers are distrib-
in many fields including public transpor- Operating gross profit 7,059 8,587 10,171 21,156 25,601
utors, general customers, affiliated en-
tation construction, green buildings, res-
terprises, wholesale, slag and clinker
idential houses and commercial build-
customers. Operating income 4,040 6,233 7,437 18,153 22,063
ings.

Sales Offices and Distributors Taipei Headquarter

Non-operating income
and expenses
2,774 244 1,062 2,217 6,330
There are four Asia Taipei, Keelung, Taoyuan
Cement’s sales offices 36 Income before 6,814 6,477 8,499 20,370 28,393
income tax
covering the entire Tai-
wan area.
Income tax expense 1,880 1,793 1,834 5,481 6,149

Taichung Sales Office Net income for the year 4,934 4,683 6,665 14,889 22,244
20
Hsinchu, Miaoli, Taichung,
Chunghua, Nantou
Earnings per share 1.55 1.26 1.74 3.54 5.56

Kaohsiung Sales Office Total assets 270,077 238,471 247,064 279,188 297,278

Yunlin, Chiayi, Tainan,

Kaohsiung, Pintung, Penghu Total liabilities 115,223 97,808 101,268 120,140 127,829
10

Hualien Sales Office

Total equity 154,854 140,663 145,796 159,048 169,449
18 Yilan, Hualien,
Taitung, Kinmen, Mazu

In 2019 the Asia Cement Corporation did not receive

No. of Distributors any tax subsidy from the government.
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Financial Performance
(Based on the consolidated financial report)
In 2019, the financial statement of Asia Cement was consolidated into its parent
company, the percentage of net annual profit growth after tax was 57% summing up to
NT$17.46 billion, mainly benefited from China including the stable cement demand, the 100% 99%
Payout Ratio
better industrial order after the supply side reform and the new high of the cement price.
Hence, the profit contributed by the cement business in China was largely surged.
The cement and power businesses in Taiwan were benefited from the dropping of
coal and natural gas costs which led to the improvement of the financial performance. 89% 89%
Regarding the reinvestment to non-core businesses, although the performances of
Far Eastern New Century and U-Ming Marine were maintained flat, Shanshui Cement 61%
benefited from the demand growth in Northern China, its profit was largely increased, a
significant contribution which boosted the consolidated profit to a historical high.
NT$/share
Policy of Dividend Payout Cash Dividend
3.0
In 2019, Asia Cement’s Board of Directors had approved the cash dividend payout of 2.8
NT$3 per share. The dividend cash yield had stayed in between 3%-6% for a long time
and reached 7.0% in 2019. With the policy of stable high dividend payout ratio, Asia Ce-
ment continues to create value for investors.
Article 26 of Asia Cement’s Charter specifies that dividend shall be paid out with the
goal of maintaining a stable dividend by referring to the variation of business cycle. Except
1.1 0.9 1.2
for the capital in need of improving financial structure, re-investment, expanding production
capacity, or any other significant capital expenditures, the dividend paid shall not be lower
than 50% of the balance derived from the yearly net profit after tax deducting the amount
needed to compensate the loss, legal reserve and special reserve. The cash dividend shall
not be lower than 10% of the shareholders’ bonus of the year.

Dividend Yield
Information from
Financial Report 8.2% 7.0%
4.3%
3.10% 3.3%

2015 2016 2017 2018 2019

Note 1: Dividend payout ratio is calculated based on the distributable annual earning, deducting the influence of
the appraised earnings from the invested properties.
Note 2: Cash dividend yield = cash dividend / the average share price of the accounting year.

ASIA CEMENT CORPORATION

CORPORATE SOCIAL RESPONSIBILITY REPORT 75
 Sustainability 1.3 Adaptation and Mitigation to Climate Change

Risks and opportunities of climate change Risk assessment calculation method and creating risk matrix
Climate change is an issue highly concerned by Asia Cement. In order to improve Risk matrix is identified by taking hazard factor multiplied by vulnerability factor as the
the adaptation and response capability under the impact of the climate change, Hualien guide for controlling. The results identified by risk matrix indicating the risk items of Asia
Plant aggressively participates the “2016 Industrial GHG Management and Adaptation Cement Hualien Plant including: Slope disasters and threats by strong wind. The main
Program” initiated by the Industrial Development Bureau, Ministry of Economic Affairs, items to be impacted including secondary raw material (clay) transporting system, raw
and preparing the corresponding adaptation action items based on the evaluation results material grinding system and rotary kiln system.
of risk analysis, plus discussing the derived business opportunites.
Items Impacted Counter
The risk evaluation flow of climate change Level of risks Type of measure
Production flow Impact
disaster
Shut down
Shipping of of raw material
Slope land secondary
diaster shipping from
High Risk raw material (clay) outside of the plant Continue to monitor
Create Data by the associated
departments
Strong wind Raw material Reduce the
Investigation of plant environment grinding production output
Inventory of production equipment Slope land Shipping of Increase
diaster secondary operaion cost
Mid-Risk raw material (clay) Continue to monitor
by the associated
Reduce the departments
Strong wind Kiln system production output

Identify Risks
Ananlysis of regional potential disaster
Investigation of past climate impact
Possible derived opportunities

Evaluate Risks Increase the demand of products Develop innovative and sustainable
Analysis of the extent of damage
Analysis of vulnerability Extreme heavy rain and strong typhoons Masonry cement is excellent in adapting to the
cause large land slide and flush out climate change, its high water retention feature
bridges and roads, Asia Cement actively can effectively reduce the cracks caused by the
assists the villages and communities to quick water content evaporation due to the ex-
reconstruct and meanwhile to gain the treme weather such as high temperature and
“business opportunity of reconstruction”. strong wind.
Prepare countermeasures
Planning action items of adaptation
Opportunity derived from climate impact

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External risks and opportunities of Asia Cement
Aspect Topic Risk Opportunity
Impact to environment Asia Cement strives for reducing the impact to environment, and promoting energy saving and carbon reduction.

Undertaking GHG inventory in accordance with ISO 14064-1, implementing energy saving and emission reduction measures
GHG emission each year, hence, the GHG emission per metric ton of clinker is lower than other companies in the industry.

Discharge and disposal of Air pollution prevention and waste water and solid waste control measures.
waste water and solid wastes
Responding to CDP questionnaires since 2015, implementing the issues relating to carbon disclosure and climate change. Rated
Environment Carbon emission
class B on CDP in 2019.
Discharge
The measurement equipment was installed for measuring particle matter (PM 2.5), the data will be provided to relevant
and Energy Air pollution emission institutes. The domestic and international trend of emission issue will be consistently watched in order to take corresponding
measures in time.

In Asia Cement Hualien Plant, the waste heat from the rotary kiln system is used to generated electricity. It also launched various
programs to increase the efficiency of the equipment in order to reach the cement energy efficiency index. Starting from 2016,
Waste heat discharge Asia Cement Hualien Plant consecutively implements a five-year smart manufacturing cement 4.0 plan including “kiln brick
analysis and prediction”, “cloud monitoring”, “smart mining”, “optimized smart control” etc. items, to reduce the times of
shut-down, to increase the stability of material inputs and the quality of clinker, hence, the optimized production.

In seeking for the economic sustainable development, converting wastes into resources is an effective path of creating win-win
Waste generation
situation for both environment and economy.

Economy Circular Asia Cement passed the certification of the highest maturity level of circular economy BS 8001:2017 by using the dual-model of
Economy replacing raw material and fuel, the first cement company in the world received 3 certificates of cement product carbon/water
Disposal of waste footprints and circular economy at the same time through the verification of a third-party. It is expected to reduce resource
consumption and GHG emission as well as creating new industrial value with the implementation of circular economy sustainable
operation model.

Asia Cement strictly exercises self-discipline by drafting sustainable mining mountain indexes. It creates “Asia Cement
Hsinchengsheng Mining Area Information Public Network” to encourage local residents to join “Asia Cement LINE group”, so that
Asymmetrical information general public are able to momentarily capture information regarding the mining area and their on-line opinions are replied by
dedicated staff. Asia Cement Service Center is established in Fushi village for real-time communication.

Asia Cement routinely attends the meetings held by the chiefs of village, neighbourhood and tribal affairs. It invites nearby
Sustainable Conflicts on mining villagers to inspect the mining site and to attend the panel discussion, working with government three-party discussion expert team
mountain contents to continue investigating, disclosing and communicating.
Society Mining
Mountain
Under the condition of complying the laws and regulations, the mining area will be planned to have multiple use including native
botanic garden, geographic museum, ecological lake, aboriginal culture hall, leisure facilities. Its design will be connected with
Damages caused by mining lifetime learning of environmental education, industrial development in enhancing local job opportunites, caring the disadvantaged
mountain extraction and building a healthy community. The actual layout will be designed based on future use planned by the government. In the
future, Hsinchenshan mining area will be returned to nature by the good planning of Asia Cement to recover the beautiful mountain
and forest.

The financial impact caused by climate change

Asia Cement has initiated a carbon disclosure project CDP which refers to the framework of Task Force on Climate-related Financial Disclosures (TCFD) to steadily disclose
the risk and opportunity caused by climate change in order to understand the financial impact.

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 Risk and opportunity management Water resource management
Risk and opportunity management and assessment In the extreme climate condition, water risk is a key issue that the company must face in
the operation. In the cement industry, the water resource risk management is an urgent task.
Asia Cement has issued a “policy of corporate CSR practices” which is approved The management of water resources is the top priority of Asia Cement including the tasks of
by the chairman, it regulates that the company shall assess and manage various risks water recyle and reuse, water risk management and action plan disclosure.
and report to Board of Directors. The assessment shows that Asia Cement’s main
risks are relating to climate and water. Asia Cement water risk evaluation and action plan

Climate strategy Type of Risk Item Water Related Risks Risk Management and Action
Climate change is the main risk Asia Cement is facing. Refering to the framework Adopt policy to cover overall water saving
and management measures.
of TCFD and basing the National GHG phased control targets, Asia Cement has ad- Water resource Increase production efficiency in the
Policy management policy
opted a mitigation strategy and set the goals for future assessment: manufacturing process to reduce the use
of water and to increase the water recycle
rate.
Build four warehousing depots in the
Preheating pre-forging harbors of Keelung, Taichung, Kaohsiung
rotary kiln equipment – the and Hualien to reduce the cost of cement
Identify Asia Cement’s short, mid and longterm risks and opportuni- Transition technology of recycling transporting, plus sea transport of cement
ties relating to climate change. waste heat to generate around the island by bulk packed cement
risks Technology / power. cargo vessel belonging to the re-invested
market Closely combining the U-ming Marine Transport Co.
Cover both mitigation and adaptation while implementing low carbon markets of construction Expand production capacity by ways of
transformation program by focusing on energy saving/carbon reduc- business in upper, mid and both self-building and merging to extend
tion and energy use efficiency as the main targets and strategy of the lower streams . the influence to the cement markets in
Mainland China operation locations.
operation and impacts to finance.
Reducing power consumption and
The climate change scenario of Asia Cement is in compliance with Business Porland cement consuming replacing packaging material are the keys
Reputation water resources to reduce the impact caused by water
the National Carbon Reduction Target. resource consumption.
Not easy to store water due
Create key performance indicators for the management, such as re- to steep slope of the stream,
Implement water resource management
Immediate Fully use of water resources
ducing 10% of the cement grinding consumption per unit, reducing serious drought occurred in Evaluate the water risk of suppliers
20% of cement emission strength by 2030. the watershed area.

Inland likely to be flooded due Prepare water saving program to reduce

Fully disclose Asia Cement scopes 1 – 3 GHG emission and risks. Physical to sea level rising caused by the needs of water.
Risks global warming and resulting Effectively use limited water resource, the
the reduction of clean water target of recycle rate is above 85% every
Set and disclose the status of reaching the targets of Key Perfor- Long term sources and the shortage of year.
water resources. Take inventory of product water footprint
mance Indicators. Continuing and fully recycling and evaluate the impact to scarcity of
and reusing water. water resource.

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Risks and opportunites of climate change Asia Cement’s opportunity evaluation and
action plans relating to climate change
Regarding the risks and opportunities created by climate change, in addition to
evaluate and manage various risks according to the “policy of corporate CSR prac-
tices”, Asia Cement adopted the strategy to identify, assess and implement the corre-
sponding action plans aiming at climate change to strengthen the capability of adaption Type of Opportunity Relating to Opportunity Management and
and mitigation under the impact of climate change, plus drafting the corresponding Opportunity Climate Action Plans
adaptive action plans based on the evaluation resulted from risk analysis and discuss-
ing the derived business opportunites. Projected by 2020 masonry cement
Product and Developing “Masonry Cement” low will potentially replace 6.3-12.6% of
Service carbon product the production and sales of ACC
Asia Cement’s risk evaluation and action bagged cement.

plans relating to climate change

Supply Chain More alternative raw material
After the passing of amending
and/or Value available for purchase, increasing
Type of Risk Item Climate Related Risk Risk Management and Action “Waste Disposal Act”, suitable
the diversity and replacement of
Chain waste can be selected to use.
resources.
GHG Control Act Total Realizing energy saving and carbon
Laws Amount Control and reduction
Carbon Tax Purchasing renewable energy certificate Evaluating climate change risk to
Adaptation Five-year program of smart grasp the damage to Asia Cement
and Mitigation cement production 4.0 in cement caused by climate change and
Hualien Plant initiating a smart cement plant proposing improvement plan for
Transition Technology Technology of alternative Activities management.
production 4.0 program to use cement
raw material and fuel low carbon manufacturing process.
Risk

New products Ananlyzing the risk of product

replacement and the competitiveness of AI and big data analysis system to
Market development and Installing optimization system ensure current implementation status
customer needs change other material. Investment and (intelligent on-site inspection and target of the program, drafting
R&D system, initial crushing control management proposal and creating
system) key performance indicators.
Production facility Drafting disaster emergency response
Immediate or transport causing plan
operation loss
Physical
Risk The transport route
Continuing monitoring climate related Investing low carbon product
of raw material easily Including the thinking of climate
Long term influenced by climate risks Operation
development and manufacturing
change in the operation strategy process improvement to reduce
change
various threats from climate change.

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 Sustainability 1.4 Supply Chain Management

Types of Asia Cement’s supply chain Joint Procurement Center Requirements

Item Description
Observing government Don’t force employee to work, not illegally hire employee, don’t use
laws and regulations raw material banned by law.
Raw Material Transportation Confidentiality of The information of technology, quality, product and service relating
Limestone Bags.fibc. information to the respective work or project shall be kept confidential.
(Self-mined.purchased).
Bulk Trucks.
Clay and silica Separated responsibili- Clear responsibility separation between “purchase requisition” and
sand. Bulk Trains.
Iron Sand.
ties between purchase “procurement”, suppliers can discuss technical issues with the users
Cement Ships. requisition and of the product, including helping to draft specification, but not
Gypsum.
procurement allowed to discuss or deliver any business terms to the users.

The suppliers and the Joint Procurement Center maintain a profes-

Professional ethics sional relationship, both sides shall avoid to be involved in any
Types of social, entertainment, sending gifts, etc. events.
Asia Cement’s For the known services, such as annual maintenance, specific
supply chain technical maintenance, shall be planned in advance the required
Pre-planning of the personnel for the year. Suppliers are not allowed to use the excuses
workers such as works too concentrated, too much or holidays, to raise
prices or to refuse performing the work.
Energy And Contractors
Resources Civil Engineering; If the suppler is involved with the work during the design or planning
mining. Separation of design
Purchased phase, it shall not participate the actual implementation of the work
electricity.
Manpower dispatch. and work contracting
Environment later.
Waste heat Protection.
generation Work Safety. Suppliers shall provide the cost analysis data at the request of the
power. Mechanical Repir. Cost analysis Joint Procurement Center at the time that the prices of raw material
Coal. Electrical Equip- or labor wage are increased.
Heavy oil. ment Repir.

Uniformed prices Suppliers shall not offer different prices to different user departments
in Far Eastern Group.

Joint Procurement Center Supplier social responsibility commitment letter and auditing
The procurement activities of Asia Cement are jointly handled in the Joint Procure- For the purpose of ensuring all suppliers complying with sustainable development
ment Center of Far Eastern Group. The mission statement of this center is: “Integrating principle in the aspects of environment, society and economy, bearing corporate social
internal and external group resources to strengthen the synergetic functions and to tar- responsibility and continuing to improve, Asia Cement requested all suppliers to sign a
get reasonable and competitive prices under the effective risk control; leading toward “Supplier Social Responsibility Commitment Letter” since November of 2016 as one of
a green, low carbon and environmental-friendly supply chain; creating a professional the conditions to select the suppliers. In 2019, a total of 507 suppliers had signed the
procurement service team that can be trusted by both the customers in the group and the commitment letter, 417 domestic and 90 foreign suppliers.
suppliers; devoting to the sustainability of the society and the environment.”

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Supplier management and facilitation
sia Cement has set various evaluation indicators for suppliers. The purchasing department implements supplier risk evaluation and on-site facilitation according to the items specified
in the Supplier Social Responsibility Commitment Letter. In 2019, there was not any high risk suppliers found after the evaluation. The picture shows the on-site facilitation and discussion.

Email address of supplier

complaints

Indexes of the supplier social responsibility commitment

I.Labor and Human Right Level of Risk II. Ethic Guideline Level of Risk III. Environment Level of Risk IV. Health and Safety Level of Risk

1.Volumtary hiring High Mid Low 1.Sincere business operation High Mid Low 1.Permit and report High Mid Low 1.Occupation safety High Mid Low

2. Forbiding to hire child labor High Mid Low 2. Transparent and opened information, High Mid Low 2. Preventing pollution and saving resources High Mid Low 2.Work injury and occupational diseases High Mid Low
cooperation

3. Wage and welfare High Mid Low 3.IP right and information confidentiality High Mid Low 3.Hazardous substances High Mid Low 3.Emergency response measures High Mid Low

4. Work hour and break time High Mid Low 4.Identity protected petition channel High Mid Low 4. Waste water, non-hazardous solid waste and noise High Mid Low 4.Medical service and first-aid High Mid Low

5. Freedom association and negotiation High Mid Low 5.Privacy High Mid Low 5.Waste gas emission High Mid Low 5.Industrial sanitation High Mid Low
between employer and employee
6. Harassmment, abuse and punishment High Mid Low 6.Transferring contract without consent High Mid Low 6.Product and service limitations High Mid Low 6.Physical labor work High Mid Low

7. Respect and no discrimination High Mid Low 7. Complying with import and export laws High Mid Low 7.Energy, resource consumption and GHG emission High Mid Low 7.Machine protection High Mid Low
and regulations
8.Protecting female employees High Mid Low 8. Avoiding conflict of interest High Mid Low 8.Public sanitation and food/lodging High Mid Low

High Mid Low

9.Health and safety information

ASIA CEMENT CORPORATION

CORPORATE SOCIAL RESPONSIBILITY REPORT 81
 Sustainability 1.5 Customer Service

High quality customer service

Asia Cement has built a professional service team, The diversified services:
Information security
In response to the issue of information security and risk, Asia Cement estab-
lished an Information Operation and Review Committee which was submitted to
Board of Directors by General Manager. On the quarterly basis, this Committee
will be responsible for reviewing internal information application system, office
automation, netwoek security and information security protection measures. It
will also provide tools for operation, management and decision-making in order
The most complete The most convenient Customized solutions
production and island-wide sea and to reduce the risks of information security and performance management.
sales network land delivery
Furthermore, Asia Cement adopted an information security policy “Comput-
erized Information System Process Operation” to regulate the management of
all types of IT data and information from generation, use to storage. In addition,
there is a “Guideline of employee using IT equipment and information software”
to regulate the information security behaviors that the employees shall observe
during work. The results: a total of 20 inspections and audits in 2019 including
two “information security audits” each by external and internal audit units, two
Comprehensive Professional Virtual and physical
“information system internal control self-assessment”, once per quarter “SAP
services testing service channels, more
convenient to place sensitive authorization and check of abnormal conflict occupational function” and
and pick up orders once a month “SAP super user sensitive transaction check”.
In accordance with Articles 8 & 9 of the guidelines for establishing internal
control system in a public-listed company, Asia Cement stipulated “Asia Cement
Customer Satisfaction 100 98.6 98.4 98.2 97.2
95.7 Corporation personal data protection and management rules” and “Asia Cement
Corporation computerized information system process operation”, it also includ-
Asia Cement conducted a sur- 90 95.0 ed “the audit of information and communication security inspection operation” in
vey of customer satisfaction in 2019. the audit plan of 2018 and 2019. The above had been reviewed and approved
The numbers of participants and re- 80
by Board of Directors. Through information security risk framework and infor-
spondents of the survey were both mation security policy, Asia Cement is able to maintain the faith from customers.
80, the rate of response was 100%.
Asia Cement Hualien Plant received the certificate of ISO 27001:2013 in
The result showed that the customer 70
August of 2018 certified by Metal Industries Research and Development Cen-
satisfaction was scored at 95.74, ex-
ceeding the targeted score of 95. The ter the duration of validity is up to Dec. 10, 2021.
2015 2016 2017 2018 2019
Company will consistently improve
the products and services to further Survey of customer satisfaction of Asia Cement
increase the customer satisfaction.

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 Innovative and sustainable products-Low carbon masonry cement
The masonry cement exclusively developed by Asia Cement is best suitable for wall
polishing and finishing, brick stacking, tile flooring and foundation layout, etc. In addition
to provide better quality products and easy construction method, it also lowers the con-
sumption of natural resources, energy and carbon emission. Comparing to Portland Type
I cement, for each ton of masonry cement, the mineral material ans coal are reduced by
100 kg (7%) and 22 kg (17%) respectively, the GHG emission is reduced by 132 kg (16%).
The result of energy saving and carbon reduction is obvious.
In 2019, the selling of low carbon masonry cement was totaled1,516 tons. The reduced
amount resulted from the selling was: the mineral material reduced by 152 tons, coal re-
duced by 33 tons and GHG emission reduced by 200 tons. In the future, the Company will
continue to promote it to reach the win-win goal.

The awards
received by
masonry cement

2019
TCSA Award of Innovation and Growth-
2018
Conference of 2018 Industrial GHG
2017
Award of Excellent
2011
2011 Award of Far Eastern
Innovative and sustainable product— Reduction Results, Green Technology and Manufacturer on Industrial Founding Spirit.
Low carbon masonry cement Engineering Practices – nominated as the GHG Voluntary Reduction.
product adapting to climate change.

250

Mortar is fine and dense, easy to feed

200 Water Sand Cement
200 Workability Masonry Cement Mortar Portland Cement Mortar
Cement mortar used per cubic meter (kg/m )

1200
10% 9%
152 1000 136 107
150
800 Fine Coarse

100 600 70% 76%

Material unit price 990 Material unit price 912
400
50 33
200
17% 15%
227 179
0 0
Reduction Of Reduce The Reduce Greenhouse Portland Cement Masonry Cement
Mineral Materials(Ton) Use Of Coal(Ton) Gas Emissions(Ton)
Note : Coarse finish is calculated with 20mm thickness of finish, every cubic me-
ter of mortar can cover the area of 50m2.

Low carbon masonry cement Performance in 2019 The differences between masonry cement and Portland cement – Actual on-site work- Cement workers test the differ-
Taking cement coarse finish as an example ence between masonry cement and other cement.
ASIA CEMENT CORPORATION
CORPORATE SOCIAL RESPONSIBILITY REPORT 83
 Management Guideline

02 -
Policy commitment and
management system Targets
Effective
evaluation method
A HAPPY Establish a competitive salary system and a
complete employee welfare and pension sys-
Maintain as a constituent in Taiwan
High Compensation 100 index of Tai-
Each year tracking the goals
and action plans covered in
tem. wan Stock Exchange. CSR for the status.
WORKPLACE Establish a talent development quality man-
agement system. Action plan
Establsih a complete performance manage-
ment and job position promotion system. Innovation platform, Leader Campus
Provide employees with a complete training of CommonWealth Magazine Group.
system for growing.
100% gender equality in Asia Cement.

Asia Cement providing occupational competency to employees for the advancement and growth
as well as developing new challenges
For the purpose of creating talent teams for sustainable operation,
Asia Cement systematically cultivates and develops employees on
the long term baisis. Each year it provides core occupational compe-
tency, professional competency and management skill training pro-
grams to employees based on different types of jobs and positions.
Furthermore, it adopts a dual-track promotion system including pro-
fessional position or management position, through work experienc-
ing and transferring, or project type of training, to allow employees to
have the opportunity of development based on personal career needs
in different phases.

For example, Contemporary Supervisor Training is a course held by Asia

Cement since 2014, the trainees are mainly assessed and selected from
mid-level supervisors. Members are required to take a two-year intensive 225
hours training course first and an exercise of 30 top-management meetings
and 30 panel discussions of topics. Until present time, re-training is provided
each year to continuously develop these high-potential talents. Currently, over
990% of the members have been promoted and some of them have taken the
highest supervisor position in the department.

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A happy workplace in coordination with UN SDGs—Highlights

Attracting and retaining talents

Continued to be a constituent of “Taiwan High Compensation 100

4
SDGs4.4 Index” , Taiwan Stock Exchange.
QUALITY
Asia Cement conducted a 2020 survey of happy workplace employ-

1
EDUCATION ee satisfaction, the levels of all items were higher comparing to that Work environment
and safety
of 2018. The top three items were work environment and safety,
team operation and organization recognition.

2
Team operation

5 SDGs5.1
There is not any difference of salary and wages among different gen-
der and ethnical groups. The basic salary ratio for the newly hired

3
GENDER
EQUALITY male and female employees with the same job positions and grade Organization
is 1 1, gender equality is reached. Recognition

In 2020, Asia Cement adopted a human right policy to stipulate hu-

8
SDGs8.5 man right caring items and measures.
SDGs8.8 Clearly defining human right topics: a workplace of diversity and in-
DECENT WORK clusion, equal rights in the workplace, a safe and healthy work envi-
AND ECONOMIC
GROWTH ronment, free association and assembly for employees, realizing the

10 REDUCED
negotiation between employer and employees, physical and mental
health as well as balance of work and living for employees.
INEQUALITIES

Developing human resources Occupational safety and health

The Training and Quality Management System of Asia Cement

4 3
SDGs4.4 SDGs3.4 Asia Cement has installed an occupational safety and
was evaluated by Workforce Development Agency, Ministry of La-
health management system to create an organiza-
bor, as a TTQS Talent Training Quality System (Enterprise Cate- SDGs3.6
QUALITY GOOD HEALTH tional culture of safety and health.
EDUCATION gory) and received a corporate bronze medal. AND
WELL-BEING
Received the “2019 Happy Enterprise Award” in the category of
manufacturing and real-estate brokers.

8 DECENT WORK
AND ECONOMIC
Explicit human rights topics: A workplace with diversity and inclu-
sion, equal rights in the workplace, a safe and healthy working
environment, the freedom of employees’ assembly and associ-
8 DECENT WORK
AND ECONOMIC
SDGs8.8 The core business of Asia Cement reached the goal
of zero-disaster in two consecutive years.
GROWTH GROWTH
ation, fulfill the negotiation between employer and employees,
employees’ physical and mental health and the balance between

11
work and daily life. SDGs11.5 Asia Cement keeps reviewing and improving the
occupational safety and health management, plus
SUSTAINABLE
CITIES AND
reviewing the cause analysis and improvement mea-
COMMUNTIES sures of occupational injuries.

ASIA CEMENT CORPORATION

CORPORATE SOCIAL RESPONSIBILITY REPORT 85
 Sustainability 2.1 Attracting and retaining talents

In order to aggressively retain excellent talents who are highly dedicating to the Employee satisfaction is a comprehensive indicator showing empoyees’ loyalty,
work, so that they can have the chance to present the best performances and to de- cohesiveness and sense of belonging. Since 2018, Asia Cement started to conduct
velop the potential, and their achievements can be recognized and respected, Asia a survey of employee opinions to the core value every two years in order to learn
Cement has integrated communication channels, adopted diversify and creative ways the satisfaction level of employees to corporate governance. This survey was con-
to continue request and guide all employees keep insisting on the core value. It con- ducted in the headquarter, Hualien and Hsinchu Plants, a total of 230 questionnaires
tinuously communicates with supervisors and employees about the vision, core value were sent out from the system and 205 respondents in 2020 .
and operation concept of the company through multiple channels, such as meetings,
speeches, internal press, to strengthen corporate culture and mutual commitments be-
The results of Asia Cement employee satisfaction survey of 7 items in 2020.
tween the company and the employees. Hence, each employee is able to sense his/ Comparing to that of 2018, each of the 7 items showing higher satisfaction level.
her importance in the company and every job is very important, ultimately to escalate “Work environment and safety” and “team operation” are still ranked no. 1 and no.2.
the sense of happiness and well-being. The satisfaction levels to “Company management” and “organization recognition”
are largely increased.

Asia Cement happy workplace employee satisfaction survey

100.0%

Above 25 years 34.1% 90.0% 85.2% 88.8%

83.7%
15-25 years 18.0%
Seniority 78.0% 79.3% 76.6%
5-15 years 24.4% 80.0% 74.7% 78.8%
81.2% 72.8% 72.4%
within 5 years 23.4% 68.8% 68.8%
70.0% 67.5%

Above 50 years old 38.5% 60.0% 57.1%

Age 30-50 years old 52.7%

50.0%
Under 30 years old 8.8% The
Work The work The welfare Team Learning Company Recognizing
environment itself of work-hour operation to develop management the epidemic
and safety organization prevention
Female 17.1%
2018 2020 issue

Gende
Asia Cement employees's satisfaction with various types(%)
Male 82.9%
Note 1: Percentage presenting the % of employees who answered “satisfied” and above
(including very satisfied)The result of employee satisfaction survey.
Category of Note 2: The results of 2018 survey were publically disclosed in CSR.
Administrative
Services 22.9%

Category Category of Production 38.5%

Comparing to the results of 2018, the satisfaction levels in 2020 are higher in
of Work Category of Sales 15.1%
all categories, indicating that the policies and projects have reached better perfor-
Category of Supervisors 23.4%
mances. The top three satisfactions are work environment and safety 85.2%, team
operation 83.7% and organization recognition 78.8%.
0.0% 20.0% 40.0% 60.0% 80.0% 100.0%
The employee satisfactions are broken down to 7 categories, one more category
Note 1: The above numbers representing the percentage of the total respondents in the specified was added in 2020 in connection with the corona virus which gained the highest
category and condition. percentage 88.8%, representing that employees were satisfied and felt safe to the
Note 2: In 2020, 205 respondents of 230 questionnaires sent out. prevention measures taken by the company (including propaganda, measures and
care of employees).

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 Owing to the special features of the industry, most employees of Asia Cement are male. New and resigned employees
The types of employees are more of the plant affairs, they all show coherence and enjoy
good welfare, hence, other than the retired employees, the turn over rate is very low. NEW Male Female New staff
New staff People Rate(%) People Rate(%) People Rate(%)
The structure of
employees Supervisor Below 30 51 47% 9 29% 60 43%

9% Administration 30~50 105 11% 25 19% 130 12%

164
11% Above 50
Total
15
171
3%
11%
1
35
2%
17%
16
206
3%
12%
197
Plant affairs Sales Note: Selecting newly hired employees under 30 years old.

65% 16% BYE

Resigned/
Male Female Resigned/retired staff

retired staff People Rate(%) People Rate(%) People Rate(%)

Below 30 40 37% 3 10% 43 31%
30~50 143 15% 19 14% 162 15%
Above 50 52 10% 7 16% 59 11%
Note : Supervisors are all with the position of over level 12, other than one Japanese high ranking supervisor in
Chiahui Power, all others are Taiwanese. Total 235 15% 29 14% 264 15%
The number of employees
Number Of Employees Classified By Gender And Employment Contract
Resigned/ Turnover
Staff Total number of employees Permanent Temporary Site Staff
Total retired staff rate(%)
Site Male Female Total Male Female Total Male Female Total
Cement 487 33 7%
HQ of Asia Cement 116 36 152 116 36 152 0 0 0 152
Hsinchu Plant 28 1 29 28 1 29 0 0 0 29 Ya Tung 483 47 10%
Hualien Plant 292 14 306 292 14 306 0 0 0 306 Ready-Mixed Concrete
Ya Tung Ready-Mixed
407 76 483 407 76 483 0 0 0 483
Concrete
Yuan Long 202 23 225 202 23 225 0 0 0 225 Yuan Long Stainless Steel 225 46 20%
Stainless Steel
Ya Li Precast 27 11 38 28 8 36 1 1 2 38
Nanhua Cement 21 0 21 21 0 21 0 0 0 21 Ya Li Precast 38 0 0%
Chiahui Power 70 10 80 70 10 80 0 0 0 80
Fu Ming (Da) Transport 379 39 418 379 38 417 0 1 1 418 Nanhua Cement 21 0 0%
Total 1542 210 1752 1543 206 1749 1 2 3 1752
Chiahui Power 80 4 5%
Note : In the consideration of manufacturing, sales, market and environmental evaluation, on January 21, 2016,
Asia Cement Hsinchu Plant officially filed an application to Ministry of Economic Affairs to withdraw the use
of a mining land. Bureau of Mine, Ministry of Economic Affairs replied by mail on January 26, 2016, to inform Fu Ming (Da) Transport 418 134 32%
the cancellation of the program. Currently, there is not any plan to re-apply due to the highly uncertain
issues of environmental protection, laws and regulations and operational risks. Hence, the total number of
employees in Hsinchu Plant of Asia Cement was reduced. Note : The turnover rate is the number of resigned divided by the total employees of the respective
type, the rate of new employees is the newly hired divided by the total employees of the
Fixed-term labor contract: Labor contract terminated at the end of a fixed duration or reaching the end of scheduled respective type.
time for an appointed task.
Labor Contarct Temopary labor contract: Terminated at the end of a fixed duration or reaching the end of a specific event, such as the
end of a project or task phase, or the employee being temporarily replaced has reported back to work from a leave.
Note : Employees dispatched to subcontractors to work by Ya Tung Ready-mixed Concrete are
not included in the number of employees, the rate of newly hired, the rate of resignation,
Full-time employee: The work hours of employees per week, per month or per year are in compliance with the legal
Type of Employee and practical definitions of the workhour stipulated by the nation parental leave without pay, the range of salary variation, average number of trainees, occu-
(such as at least 9 months per year, at least 30 hours per week). pational injury calculation. ASIA CEMENT CORPORATION
CORPORATE SOCIAL RESPONSIBILITY REPORT 87
 The Competitiveness of Welfare Protecting the welfare system for full-time employees
The employees of Asia Cement are the most valuable asset of the company. The For the protection of the employee welfare, Asia Cement established the systems to ensure
Company strives to attract excellent talents by offering competitive salaries to join the the completeness of the welfare, which include: “Labor Retirement Reservation Supervision
work team, it commits to provide excellent work platform as well as challenging mis- Committee”, “Labor Pension Supervision Committee”, “Employee Shareholding Board” and “Em-
sions, in order to cultivate and guide the best talents who can recognize the mission, ployee Welfare Committee”.
vision and core value of the Company to collectively move towards the goal of success.

Systematic remuneration, operation achievements Employee

shared by employees Welfare System Description of welfare
Regarding the employee remuneration system, Asia Cement has stipulated in its
company charter that if there are earnings in the year, 1.0% - 4.0% of the net earning be- Periodically conducting meetings to review the appropriation and utilization of
fore tax shall be appropriated as the employee remuneration. The percentage of appro- the pension to fully protect the pension rights after retirement of employees.
priation in the subsidiaries shall be 1%-5% of the net earning before tax. All employees Asia Cement adopts both the new and old pension systems for employees, it
withdraws 6% pension preparation fund from the wage based on the monthly
of Asia Cement are able to commonly enjoy the results of the operation. Labor Pension wage classification table by law and deposits it into the individual employee
Supervision account in the Labor Insurance Bureau to maintain the rights of employees; it
Unit: NT$1 million Committee also appropriates a monthly labor pension preparation fund (8%) to maintain
the rights of the employees who select the old pension system.
Employee welfare 2017 2018 2019
Short-term employee welfare
Employees join the board to become a member and able to continuously
Salary 591 641 634 invest and aquire the shares of the Company to accumulate wealth and to
Remuneration of directors gain a stable life after retirement or leaving the job. The employees who
115 225 232 are qualified can apply to join the board and allocate a fixed amount from
Labor and health insurance 48 43 43 Employee the monthly salary as the trust fund of the employee shareholding trust
Shareholding account. Asia Cement also allocate a monthly incentive matching bonus
Others 19 17 14 Board to the board members, the bonus is treated as a portion of the member
income.
Subtotal 773 926 923
Welfare after retired

Defined contribution plans 15 15 14 Appropriating welfare fund by law to conduct various activities. The plant
is constructed with basketball court, tennis court, badminton court, table
Defined benefit plans tennis court and swimming pool for the recreation of the employees.
(7) (9) (15) Employee Other welfares also include the subsidy for employee health check, group
Welfare comprehensive insurance, children education, employee touring and
Subtotal 8 6 (1) Committee social club activities.

Total employee benefits expense 781 932 922

Note: Extracted from Asia Cement Individual entity financial information.

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 23

Competitive salary system Graduate 37

43
Asia Cement has formulated a rule of work based on Labor Standards Act, a portion of the rule and
welfare is even better than the Act. In addition to offering better salary level than other companies in 23
the industry, on three major Chinese festival days in the year, we also offer award money based on the
Under graduate 32
increase of the clinker production, award money of employee attendance, award money for cost saving
and the special mid-year award money relating to the net operational profit, plus the employee bonus 38
for the earning made by the Company. All of these are listed and defined in the group agreement or
the Company charter. 0 10 20 30 40 50
Note 1: The average salary of the employees with all educational levels hired during the year.
Compensation research Basic compensation
Note 2: The source of Taiwan Company Starting Salaries is from the Salary Survey Report of Asia Cement
report by Get Consultant
2019, Get Consultants Corp.
Asia Cement Competitive salary(K)

Annual leave system Remuneration for board directors and supervisors, and the
institutionalization of sustainable performance.
Asia Cement provides annual leave days according to Labor Standards Act. The
employees responsible for manufacturing and warehousing are working on three shifts, The remuneration for board directors and supervisors is clearly defined in the Corporate
if there are needs in the production and the annual leave days cannot be totally taken, Charter of Asia Cement which is linked to the sustainable performance of the company, that
the remaining annual leaves not being taken can be converted into wages. is, only when making profit, the company will then allocate no more than 2.5% of the profit
to be the remuneration of board directors and supervisors. The remuneration for board di-
rectors, supervisors, general manager and vice general manager are defined in Corporate
The salaries of the full-time employees not holding the Governance Report, please refer to the annual report.
positions of supervisors
The new version of Corporate Goverenance Roadmap issued by Taiwan Stock Gender equality
Excahnge stipulated that the public-listed companies in Taiwan shall disclose the number of The salary structure of the top management of Asia Cement is the same as the one
full-time non-supervisor employees, their average salary and the median value of the salary. of all employees. The salary scale is based on the market prevalent rate, company
In 2019, there were 461 full-time non-supervisor employees in Asia Cement, the av- financial status and organizational structure. There is not any difference of salary scale
erage salary was NT$1,257,000 and the median salary was NT$1,110,000. The above in terms of gender or ethnic groups, the ratio of the basic salaries between the newly
statistic was based on the guidelines of Taiwan Stock Exchange and then deducting super- hired male and female employees with the same job position and grade is 1:1.
visors (managers) and employees qualified for exemption, the employees whose duration
of service is not up to one year were weighted in the calculation according to the number The ratios of basic salary and remuneration between
of days on the job, and the salaries were calculated according to the corresponding basis. female and male employees in various types of jobs in
Number
2019are shown as follows:
Year of People Average Value Median

2017 542 1,002,417 -

Supervisors Sales Plant affairs Administration
2018 467 1,229,579 - 1 0.917 1 0.891 1 1.052 1 1.086

2019 461 1,257,000 1,110,000

Type of employees (Ratio between Female and male)
2018~2019 Difference - 6 27,421 -
Note: The total number of employees referred in this index representing the full-time employees for the
entire year of 2019.

ASIA CEMENT CORPORATION

CORPORATE SOCIAL RESPONSIBILITY REPORT 89
 Retaining the position without pay for baby nursing The operation of the Union
For the need of baby nursing, the employee can apply for retaining the position without The percentage of employees in Asia Cement joining the union is 68.5% of the total. The
pay before the child is three years old, the longest period can be up to two years. At the end union periodically conducts directors and supervisors meeting, provisional directors and supervi-
of the period, the Company provides the related training courses to ensure that the employ- sors meeting, members general assembly, and various events to enhance physical and mental
ee is able to understand current work status in order to smoothly return back to the position. health of the employees.

Annual total Percentage increase in

Year 2019 Site compensation ratio annual total compensation ratio
Total
Item Male % Female % Cement 9.07 1 2.217 1
Number of employees eligible for maternity or
paternity leave in 2019 70 83% 14 17% 84 Ya Tung 4.27 1 Na
Number of employees apply for maternity or Ready-Mixed Concrete
paternity leave in 2019 2 2% 1 1% 3
Number of employees can apply for returning to Yuan Long Stainless Steel 8.87 1 0.47 1
work in 2019 0 0% 1 100% 1
Number of employees apply for returning to Ya Li Precast 3.08 1 Na
work in 2019 0 0% 1 100% 1
Returning rate - 100% Nanhua Cement 2.17 1 1.22 1
Number of employees serve for one year after
applying for returning to work in 2018 1 0 0% 1 Chiahui Power 4.58 1 2.29 1
Maternity or paternity leave retention rate 100% -
Fu Ming (Da) Transport 5.96 1 0.05 1
Note 1: Calculation of employees eligible for maternity or paternity leave: employees applied for maternity or
paternity leave from 2017 to 2019. Note 1: The ratio of salary change =A/B
Note 2: Returning rate calculation: 2019 actual returning employees after maternity or paternity leave/2019em- Note 2: A:(highest salary of 2018–highest salary of 2017) /highest salary of 2017
ployees shall return to work after maternity or paternity leave x 100%. Note 3: B:(median salary of 2018–median salary of 2017) /median salary of 2017
Note 3: Retention rate calculation: 2018employees still at work after 12 months after returning to work from
maternity or paternity leave/ 2018 returning employees after maternity or paternity leave x 100%. Note 4: NA Not increased in Ya Tung Ready-Mixed and Ya Li Precast

Transparent disclosure of salary structure

The median ratio between the highest annual salary in Asia Cement and the annual salary of other employees (the one In 2019, there was not any petition
with the highest salary not included) falls in the range of 2.17 –8.87: 1. In 2019, the median ratio between the increase per- cases incurred in Asia Cement
centage of the highest annual salary and the the average increase percentage of other employees (the one with the highest
salary not included) falls in the range of 0.05-6.35:1.

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 Human right

Asia Cement human right policy Management policy and procedure

In accorsance with the regulations stipulated in Labor Standards Act, Asia Cement
The Company strictly observes the labor related local laws and reg- values the balance of employees’ health, work, family and leisure life, meanwhile,
it implements the management of workhours and forbids to hire child labor and to
ulations around the world where the operation locations are to protect
force and discriminate labors in all forms and ways.
the legal rights of the employees. It also agrees and follows interna- For the purpose of building gender-equal workplaces, the Company adopts the sys-
tionally recognized human standards including UN “Universal Declara- tem of parental leave without pay and provides family care leave, menstrual leave,
tion of Human Rights”, “The Global Compact” and “International Labor maternity leave, paternity leave and beastfeeding room.
The Company instills the concept of caring health to employees, every
Organization Convention” to fully bear the responsibility of re-
year it arranges employees in the headquarter and the Plants to do physical
specting and protecting human rights, to treat and respect all check and hold keynote speeches in connection with health. It also works
employees with dignity, including contracted personnel, train- The vision of with Hsinchu Lifeline Association to initiate an Employee Assistance Project
ees, etc. The human rights policy suitable for the Company Asia Cement (EAP) to provide employees with professional information service and to assist
employees to solve physical, mental and spiritual problems.
was formulated.
The Company routinely evaluates the impact to human rights caused by
The goal is to complete company operation and internal management, and creates the corresponding
the internal human handling procedures.
rights evaluation by
2020, to 100% com-
plete the evaluation
of the suppliers and
Human rights evaluation subsidiaries by 2025. Items and measures of caring
As a benchmark company of the cement industry in Asia, human rights
Asia Cement for a long time pursues the core operation con- The human rights policy of the Company is applicable to the
cept of high quality, high efficiency and high protection to envi- Company and the domestic and foreign subsidiaries, joint-ven-
ronment. While pursuing enterprise sustainable operation and ture company and other affiliated companies in the group that have the
economic development, Asia Cement also values the caring and commit- practical control capability. The guidelines to be followed:
ment to human and environmental society, plus the bearing and enhanc-
ing of social responsibility to employees, consumers, society and envi- Build a workplace of diversify and inclusion, respect
ronment. In order to fulfill the commitment to provide safe and healthy the equal rights in the workplace.
workplaces, the Company appointed dedicated staffs to manage the oc- Provide a safe and healthy work environment.
cupational safety and health operation for the employees in accordance Respect the freedon of assembly andassociation, fulfill
with the laws and regulations, furthermore, every year it routinely invites the negotiation between employer and employees.
professional institute to the Plant to perform the inspection in identifying Assist employees to maintain physical and mental
the environmental risks in the operation. health and balance of work and life.

For the details of human rights policy, please visit

Asia Cement ESG Resource Center

ASIA CEMENT CORPORATION

CORPORATE SOCIAL RESPONSIBILITY REPORT 91
 Sustainability 2.2 Human resource development

The Competitiveness of Capability

In terns of the competitiveness of the the employees
in Asia Cement, the chief plant manager of Hualien Plant
The deputy plant manager of Hualien Plant said that
“All levels of supervisors and employees are all paying
Talent development
was very grateful when talked anout it, “The policies of he attention to global latest techonology and expecting to quality management
Company are accepted by every employee, such as sala-
ry structure and bonus system. They can be rewarded by
become the leaders in the industrial technology. The top
management is also willing to support and invest, every-
system
taking the initiative to work hard, hence, they all feel like one in the plant is actively doint something to save energy In order to strengthen talent devel-
working for themselves.” Unlike other companies, Asia and reduce carbon emission. The quality equipment lab opment, Asia Cement attended the eval-
Cement adopts a unique philosophy. The Company offers and the technical capability of the staffs are always main- uation of TTQS Talent Training Quality
an opportunity and space for whoever intends to dedicate tained at the top class among cement plants around the System (Enterprise Category) consucted
the expertise. The phenomia is created in a natural mood. world.” by Workforce Development Agency, Min-
Whenever an employee has a problem, the supervisor is istry of Labor and received bronze medal
required to solve it and to help setting the goal. The coor- for excellent results. The period of valid-
dination and communication between supervisors are also ity is up to October 6, 2021. In the future
very smooth. In addition, employees can better develop the quality management system will be
their potential through good software and hardware equip- continuously implemented to advance the
ment provided by the Company. For example, there is a quality.
professional information technology team in Hualien plant
to maintain the smooth production and running of all pro-
cesses, plus to assist the upgrade and inspection of the
systems in all subsidiaries.

Aggressively train talents

Asia Cement Hualien Plant Chief Plant Manager and Deputy Plant talked about the competitiveness of the employees Collecting and exchanging the professional opinions

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 The average hours of training received by all
categories of employees in 2019 Training policy
Manager staff Administrative staff Salesperson Factory staff

Site Male Female Male Female Male Female Male Female Utilizing TTQS as the benchmark for the quality of the training, combining the
strategies of company vision and goal and adopting the concept of talents being
Cement 30 26 37 31 13 28 36 28 the foundation of an enterprise to create a training system for diversified devel-
Ya Tung Ready-
Mixed Concrete 7 0 4 0 0 0 4 0 opment.
Improving the required knowledge, attitude and skill of the employees for reach-
Yuan Long 38 38 15 15 27 27 29 19 ing the collective and individual goals of work in order to fulfill the needs of enter-
Stainless Steel
Ya Li Precast 27 25 - 13 36 7 93 51 prise development and organizational manpower planning, and to enhance the
production efficiency and quality, hence, to increase the profitability and brand
Nanhua Cement 8 - 16 - 0 - 8 - image, to satisfy the needs of customers and to fulfill CSR, ultimately, to reach
the goal of sustianble operation.
Chiahui Power 4 5 2 7 - - 6 0
In responding to environmental variation, providing enriched and diversified
Fu Ming (Da)
Transport 12 12 12 24 12 12 22 - learning resources in line with the trend of industrial development, forming the
culture of continuous learning in the workplace.
Formula of calculation: Total hours of training of the category/Number of employees of the category, “-“
indicating no employee of that gender. Chairman had repeatedly stated the
importance of talent development and
the direction of critical developments for
Employee expertise management and life time learning the organization in various public assem-
blies. In order to fully convey the training
In addition to offer systematic education and training to strengthen the expertises of development commitment and informa-
PLAN DESIGN
various types of employees and good performance management cycling, Asia Cement tion from the top management, all of the
provides consultation services to assist employees for retirement or career change, talks from Chairman were disclosed in
or arranges professional consultant for one-on-one consultation. The Company also Far Eastern Magazine for the inquiry of
provides class B employment technician and professionally certified career advisors to all employees.
help employees developing career planning. The trainings in Asia Cement are
mainly held by the Company itself, some
of the employees are arranged to attend
Good cycling of performance management the open-training class held in the Group,
OUTCOME DO
or to attend the professional courses
Asia Cement implements a routine accreditation to all employees. The content of held by external training institutes. The REVIEW
accreditation covers the reviews of performance goal and core expertise of the respec- multiple self-inspired training resources
tive type. The process of accreditation is that both the supervisor and the employee are also provided such as study group,
set a common goal in the beginning, review and trace it at the middle of the period, learning clubs or online learning platform,
and evaluate it at the end of the period, the purpose is to increase the operational per- to offer employees the chance of autono-
formance and to confirm the development and performance of the employee in each mous learning.
year. The supervisor will take this chance to discuss with the employee the individual
needs of the development as well as the career planning. The supervisor will also offer
suggestions to the employee in terms of the training and development of the next year.
ASIA CEMENT CORPORATION
CORPORATE SOCIAL RESPONSIBILITY REPORT 93
 Asia Cement training projects In facing the challenges of quick-changing environment, “innovation” is an im-
portant capability for driving the sustainable growth and development for both busi-
nesses and individuals. Hence, the Company provided Innovative Power of Learn-
Asia Cement’s key item of development “Innovation and Change” is to adopt
ing – A Series of Core Occupational Competency Courses, Innovative Plant, Circular
“innovation” as the core spirit of and to stay on the trend of environment issues and
Economy-Hualien Plant Training Project and requested the junior staffs within a
the direction of organizational development, plus a comprehensive analysis on the
certain seniority to participate them in order to inject the DNA of innovation into the
needs of employees for their development. It designed and planned its 2019 inter-
employees of Asia Cement.
nal training project for the entire company based on job positions and occupation-
al competency. A total of six categories of training courses including 24 courses in Asia Cement stood out of 45 large and excellent enterprises to receive an award
the subprojects were provided according to the needs of positions and occupational of Learning Type Organization of the Year from the Innovation Platform of Common-
competency to customize the content of courses. Wealth Magazine Group.
Vice General Manager of Yuan Long Stainless Steel, Fong Hui Lee, stood out of
at least 50,000 users and was granted an award of King of Books of the Year from
the Innovation Platform, CommonWealth Magazine Group.

Enterprise Award: The award of King of Books of the Year from the
annual learning type organization Innovation Platform
1.CSR & Humanistic 2.Innovative Plant, Circular 3.Operation and
Aesthetics Class Economy-Hualien Plant Management Elite Non-linked customers- a team
The year from the innovation platform
Training Project Course for incubating key talents

Asia Cement Fong Hui Lee

4.An Online Learning 5.Innovative Power of 6.A Seed Plan for

without the Constraint of Learning – A Series of English Learning
Time and Space Core Occupational Com-
petency Courses

A total of six categories of training courses

The innovation platform of Leader Campus provided by CommonWealth Man-
gazine Group was used for the online learning without the constraint of time and
space. The special features and trend of this learning can fulfill the development and
informatization needed by Asia Cement. This type of learning will become a popular
learning channel for businessmen in the foreseeable future, managers and supervi-
sors are able to flexibly and freely select courses based on individual needs without
the constraint of time and location. It is helpful for the talents in the organization to
advance their developments continuously. The physical couses can be integrated in
the online learning, hence, businessmen can conveniently utilize the scattered time
in their busy schedule to advance themselves.
On April 17, 2019, GM of Digital Transformation Course interchanged with supervisors and lecturers.
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 The story of an Asia Cementer – A special report of talent training
Asia Cement Hualien Plant Deputy Plant Manager Ming-Ching Yang –
Received an “Advanced Study” award from Incentive Program for Special
Aboriginal Talents

Mr. Yang was back to join Asia Cement Hualien Ming-Ching Yang believed the power of education. Deputy Plant Manager Yang specifically appre-
Plant for over 20 years. He diligently studied after He said that “Applying pressure to myelf is because I ciated that Asia Cement provided a very good work
the daily work and obtained a PH.D. degree of En- am an aboriginal person. I wanted to change the im- environment, plus the selfless guidance offered by
gineering, pression of others to aboriginal people, so that I must the supervisors in the Company, so that he had the
hence, received an Advanced Study award from work harder to gain the recognition of others.” He chance to “learn by doing and learn to do”. As a re-
Incentive Program for Special Aboriginal Talents. actively shared with aboriginal parents the concept sult, he was able to find the direction and the goal of
Icyang Parod, Minister of Council of Indigenous of receiving education in order to find the direction research. He expected that in the future, more of his
Peoples, presented the award in person to Mr. Yang for oneself and the nitch of converting the thoughts of colleagues were able to continue to advance and to
and praised that it was not easy to obtain the doc- the people in the tribe. “Education can really trans- overall escalate intelligence and learning for growing,
tor’s degree of engineering, the award of Advanced form everything!” In many year, Ming-Ching Yang thus, applying expertises in various work domains.
Study was a recognition. It was not only the honor also did his best to facilitate the tribal people in the Ming-Ching Yang was grateful that Asia Cement of-
of Taroko Tribe, but also the honor of Asia Cement. Plant for them to advance the study and to attain cer- fered the job opportunities to local aboriginal people
tificates, in the hope of transforming the life of the so that they can live in the hometown and earn stable
tribal people. incomes, furthermore, creating better educational re-
sources for the next generation.

ASIA CEMENT CORPORATION

CORPORATE SOCIAL RESPONSIBILITY REPORT 95
 Sustainability 2.3 Occupational Safety and Health

Occupational safety and health - management guidelines

Policy commitment and
management system Target Action plan
The occupational safety and
health are the most concerned Policy: Creating a safe and healthy No significant occupational injury each The project of enhancing safety
topics of the stakeholders, which organization culture. year. awareness and the training of occu-
include the employees and their Commitment: Building a zero-disas- Zero occupational disease rate (ODR) pational safety and health.
family members. Hence, for the ter work environment to protect the each year. Conducting ordinary routine health
purpose of creating a safe and safety and health of workers. check and the health check for the
healthy work environment for the Management system: Implementing Petition mechanism workers involving in harzardous work
employees, Asia Cement formu- planned management and perfor- that jeopardizes the health.
lated the policy and management mance assessment each year, pro- File petition to occupational safety Conducting a training by combining
mechanism of occupational safety moting Taiwan Occupational Safety and health department for suspect- knowledge and skills based on the
and health to form an organization- and Health Management System ed occupational disease, physical or occupational competency, learning
al culture of safety and health, to TOSHMS (CNS 45001). mental infringement. and preventing harzards.
allow every employee believes that
working in here is both safe and
Method of evaluating effectiveness
happy.
Undertaking CNS 45001 management review each year, evaluating the performance assessment, confirming the results of
reaching the target and adjusting accordingly.

Comprehensive organization and system of occupational safety and health management Asia Cement Occupational Safety and Health
Management Policy
The occupational safety and health department and
Business Unit Hualien Yuan Long Creating an organizational culture for safety and health
staffs are established in all plants and the headquarter HQ
of Asia Cement by law. A proper management system is Type Plant Stainless Steel
introduced and implemented based on the attribute and General Plant General
number of employees of the business unit. Hualien Plant Chairman Building a zero injury work environment,
Manager Manager Manager protecting the safety and health of workers
specifically demonstrates an excellent result. On Novem-
Supervisor and 6 8 9
ber 6, 2013, Ministry of Labor approved a five-year valid Professional staffs
period of the performance certification. An occupational
safety and health committee is established by law in each Labor representatives 3 16 14 Sincerity Diligence Thrift Prudence
Innovation and
advancement
site, the chairman of it is the general manager (or the plant
manager), and the members include the head of the busi- Ratio of labor representatives 33.3% 50% 60.9% Laws
compliance
Management by Safety first/All Risk assessment/ Essence in
walking/Learn in employee Pre-learning safety/Endeavor to
ness unit, professional staffs, plus labor representatives Healthy/ advance to participating/ dangers/ improve/No end of
taking at least 1/3 of the total seats. At least one meet- Note : According to Article 10 of Occupational Safety and Health Management Rules organization/ prevent/ Becoming habit Preventing improvement
issued by Ministry of Labor, Ya Tung Ready-Mixed Concrete, Chiahui Power, Complete Eliminate injury disasters
ing is held each quarter to offer suggestions of safety and Ya Li Precast, Fu Ming Transport and Nanhwa Concrete are not established a systems
health policies, and to review, coordinate and suggest the committee due to the number of workers not up to the required number specified
related matters. by the rule.

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Installing an occupational safety and health The terms of safety and health included in the group
management system agreement
In addition to continuously improve the occupational safety and health manage- The terms of safety and health have been included in Articles 27 to 29 of the group
ment system in Hsinchu Plant and the Headquarter, Asia Cement Hualien Plant, Yuan agreements in both Hualien and Hsinchu Plants, approximately 8.8% of the total Articles.
Long Stainless Steel, Chiahui Power and Fu Ming (Da) Transport also installed the For the business unit that is not required to enter group agreements, the worker represen-
system. The goal of Hualien Plant is by 2020 to receive the recognition of occupational tatives are invited to collectively create a Work Rule of occupational safety and health. This
safety and health management performance by Ministry of Labor. rule is reported to Labor Inspection Agency for reference, it is the guide of safety and health
that the group shall collectively observe.
Chart of Asia Cement Co. Occupational Safety and Health
Management System Occupational Safety and Health Self-management
Internal and external audits in
the management system
Advancement Workshop.
Occupational Safety and
Location of Operation Health Management System Note 3 Note 4
Number of Number of Asia Cement Hualien Plant
employees non-employees
was listed as one of the “high oc-
Guidelines of Taiwan Occupational Safety and
Health Management System-PDCA manage- cupational injury and risks plants
Asia Cement ment model annual management program 152 0 and sites to be inspected and guid-
Headquarter Reporting occupational safety and health
ed” by Occupational Safety and
management organization (staff)
Health Administration, Ministry of
Note 1
ISO 45001:2018/ 306 310 Labor, due to a significant occupa-
Hualien Plant
CNS45001:2018 tional injury occurred in 2017, the
Company conducted a “workshop
Note 2 on advancing occupational safety
Class A occupational safety and health 29 32
Hsinchu Plant management sales supervisor 1 person and health self-management” on
January 31, 2019, and invited the
Note 1 Director and related staffs of North- General Manager Lee hosted a self-management review meeting
Yuan Long ISO 45001:2018 225 22 ern District Occupational Safety
Stainless Steel and Health Center, Occupational Safety and Health Administration, to attend the workshop
Note 2 and providing guidance. In April, 2018, the Company conducted a review meeting dis-
Class B occupational safety and health sales
38 27 cussing the results and further actions of the “Program in improving the advancement of
Ya Li Precast supervisor 1 person
occupational safety and health
self-management”. Prior to the
Note 1 OHSAS 18001 discussion, General Manager Lee
Chiahui Power (Planned to change the version in 2020) 80 19 led all plants and the representa-
tives of all subcontractors to read
OHSAS 18001 a Safety Declaration and signed
Fu Ming (Da) a Commitment letter showing the
(Planned to change the version in 2020) 418 0
Transport determination of taking all means
to fulfill the occupational safety
Note 1: Article 12-1 of Occupational Safety and Health Management Measures: An occupational safety and health management, and to
and health management system shall be established in the type 1 businesses with the number prevent the occurrence of occupa-
of labors over 200.
Note 2: Article 2 of Occupational Safety and Health Management Measures: The supervior and manage- tional injury, in order to ensure the
ment staffs of occupational safety and health operation shall be assigned based on the number safety and health of the workers.
of employees. Signing Safety Declaration and Commitment which was witnessed
Note 3: The number of employees being audited both internally and externally reached 100% in the im- by Occupational Safety and Health Center
plementation of management system.
Note 4: The non-employees are the ones working on-site without employement relationship but being
ASIA CEMENT CORPORATION
supervised by the on-site chief or assigned by the contractor.
CORPORATE SOCIAL RESPONSIBILITY REPORT 97
 Performance of safety and health management

Program management and Strengthening the safety awareness and Vertically integrating the management of
performance evaluation the project of occupational safety and contractors
health touring training.
According to the review and risk assessment of safe- Asia Cement owns a comprehensive occupational A central and satellite contractors safety management
ty and health management results, a program of occupa- safety and health management team to routinely or by proj- system was established in 2008 in Hualien Plant as a mod-
tional safety and health management is announced each ect to implement on-the-job training. In addition to reduce el of managing contractors. Through the effort of several
year and the inspection of results is executed routinely or its own risks, Asia Cement also assists the subsidiaries, years, the system has been internalized to become a con-
non-routinely in each business unit. An accreditation is im- contractors and the industry through affiliated enterprise tractor management procedure in the whole management
plemented each quarter (including active performance and occupational safety and health management poly meeting system. All contractors were vertically integrated into a
passive performance) and the performance result of each to offer mentoring and training. coordination organization, their workers are treated as the
business unit is reported to the occupational safety and In 2019, Hualien Plant held a “Joint Meeting for Oc- workers of the Plant. In addition to on-site auditing and
health committee. cupational Safety and Health Operations of Asia Cement tutoring, the Plant also provides related training to improve
In 2019, the annual goal of zero disaster was reached and the Subsidiaries” with the theme of “Tour Inspection their safety and health performance.
and the occupational safety and health management per- of Workplaces”. The purpose was to find the potential
formances of all plants were assessed at safe level. The risks and possible harzards in each department through
improvement program is continuously implemented in or- tour inspection by applying the concept of risks and to take
der to enhance the effectiveness of management and to improvement measures for the prevention. The profes-
avoid the occurance of disasters. sional knowledge and skills were consolidated in the train-
ing of occupational safety and health. Asia Cement held
214 sessions of such a training with a total of 945 trainees.

Contractor experiencing and analyzing

2019 Joint Meeting of Work Safety 2019 Joint Meeting of Work Safety-Simulating tour inspection Contractors Training

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 Process of Asia Cement Handling and Managing Occupational Safety and Health Incidents (including near-missed)

The flow of identifying harzards and evaluating risks The flow of investigating incidents

Policy Incident occurred

Taking inventory of operations Inventory shall Emergency response and treatment

be taken
against all First-aid treatment
Routine Non-routine departmental Report and inform Disaster rescue to the injured
operations
For the occupational injury
specified in Para. 2, Article 37
of Occupational Safety Act,
Labor Inspection Office shall Incident Investigation conducted together
Identify dangers be informed within 8 hours. investigation with the representative of workers

Identify legal compliance Identify dangers and the results

Occupational injury Occupational Safety incident Near missed incident

(injury or death of people) (no injury or death) (no loss)

Confirm current protection equipment (facility)

Comfort and compensation to Statistics of the injured Departmental report of incident
the injured or the death and the death investigation and improvement

Risk evaluation (risk matrix) Comfort and compensation to Reviewed by Occupational

the death Safety Committee
Risk not acceptable Risk acceptable Statistical analysis

Treatment and compensation Improvement plan and its

to the injured implementation
Determine the control measures Standard procedure for
for lowering the risk safety and health
Occupational Safety Committee
Review and approval of reviewing the results of improvement
returning to work
Confirm the residual risk after
Ordinary management Closing the case and training
taking the control measures Returning to work after of case study
recovery

Payment for disability

ASIA CEMENT CORPORATION

CORPORATE SOCIAL RESPONSIBILITY REPORT 99
 Environment monitoring and improvement in high risk and potential hearth harmful operational sites
All plants of Asia Cement implement risk assessment to the work environment specifically harmful to health including noise, powder dust and floating radiation and create
the operational standards of safety and health. They all initiate an environment monitoring progam according to the regulation to periodically subcontract the monitoring of
environment and the health check of personnel. Professional physicians are hired to observe the work environment, to evaluate the safety and health and to provide sugges-
tions of improvement.
In 2019, the results of the special health check in connection with noises showed that only 12 employees in Hualien Plant were required to receive the class 4 management
(two more employees comparing to that of 2018). The individual hearing health protective programs were designed to implemented based on the exposure condition of each
person in the work site.

Table of Asia Cement’s Health Management for the Operations Specifically Jeopardizing Health
Classification of Health Management
Harzard
Unit Improvement
Type Class Class Class Class
1 2 3 4

(Warehousing
Depot) Dust 42 Control the dust sites by the class
Headquarter
Noise Implement individual hearing
21 20 0 12 protection program
Dust 39 7 0 0 Control the dust sites by the class

Ionizing
Hualien Plant Radiation
18 1 0 0 Monitor individual dose

Dichromic Acid 3 0 0 0 Monitor individual dose

Mercury 2 0 0 0 Monitor individual dose

Dust 11 Control the dust sites by the class

Hsinchu Plant Ionizing
Radiation 1 2 Monitor individual dose

Noise 48 26 0 0
Yuan Long
Stainless Steel Ionizing
Radiation 20 22 0 0

Nanhua Cement Dust 10 0 0 0

The use of on-site protective gears and the monitoring of operational environment
Note : No any operations specifically jeopardizing health in the subsidiaries of Asia Cement including Ya Tung Ready-
mixed Concrete, Ya Li Precast, Fu Ming (Da) Transport, Chiahui Power

For the 12 employees in Hualien Plant who receive the class 4 management, they are routinely checked with the wearing of hearing protective gears, plus the monitoring of
individual exposure of noise level when monitoring the noisy work environment. The noise reduction measures Statistics of occupational disasters For the 12 employees in Hualien
Plant who receive the class 4 management, they are routinely checked with the wearing of hearing protective gears, plus the monitoring of individual exposure of noise level when
monitoring the noisy work environment. The noise reduction measures were taken including the installation of soundproof facility at the on-site rest area, the capture of noise spec-
trum to evaluate the relationship between the noise exposure and the operation time to shorten the time of exposing in the noisy area and to improve the sound insulation of the
employee rest room. The engineering improvements will be implemented subsequently in steps to minimize the noise in the operation area.

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 The data of occupational injuryof Asia Cement in 2019 Data of occupational injury of subsidiaries of Asia Cement in 2019
Asia Cement has
reached the goal of FR SR FSI FR SR FSI
annual zero disaster Unit of operation Male Female Male Female Male Female Unit of operation Male Female Male Female Male Female
in its core business
two years consec- HQ of Asia Cement 0 0 0 0 0 0 Ya Tung 1.27 0.00 7629 0.00 3.11 0.00
Ready-Mixed Concrete
utively. No any Hsinchu Plant 0 0 0 0 0 0 Yuan Long Stainless 0.00 0.00 0.00 0.00 0.00 0.00
occupational diseases Steel
(ODR 0) and death Hualien Plant 0 0 0 0 0 0 Ya Li Precast 0.00 0.00 0.00 0.00 0.00 0.00
cases due to work oc-
curred in this period. Nanhua Cement 0.00 0.00 0.00 0.00 0.00 0.00
Asia Cement’s Core Business Chiahui Power 0.00 0.00 0.00 0.00 0.00 0.00
2015 2016 2017 2018 2019 5-year average
2017-2019 Fu Ming (Da) Transport 9.61 0.00 213 0 1.43 0.00
Cement Industry Average

FR SR FSI Employee Disabling Injury Frequency Rate (FR): The ratio of actual disabling injuries per million-man
Non-
hours worked (only down to three digits after decimal point).
2.78 1039 1.70 employee Disabling Injury Severity Rate (SR): The total number of days lost per million-man hours worked
due to injury (only down to decimal point).
Frequency-Severity Indicator FSI= (FR×SR)÷1000
Note: The FR, SR, FSI of the contractors of Asia Cement’s subsidiaries are all zero.

The workers of all non-employees whose works and/ Occupational injury

or workplaces are controlled by Asia Cement
Total hours of The workers of all non-employees
One employee of Ya Tung Ready-mixed Concrete died in a traffic accident, the
work (hour)
All employees whose works and/or workplaces are occupational injury rate was 1.07%, 12 employees of Fu Ming (Da) Transport fall-
Location controlled by Asia Cement ed over in a traffic accident on the road to work, the occupational injury rate was
14.41%. one contractor of Hualien Plant suffered from bone fracture, the occupa-
HQ of Asia Cement 284,341 - tional injury was 1.35%.

Hsinchu Plant 609,025 739,648

Location Cause of Incident Recovery Duration
Hualien Plant 50,936 56,669.5 On Dec. 18, 2019, a contractor worker in Hualien Plant falled over and
hospitalized because his hand was drawn into the belt conveyer and
Ya Tung Ready-Mixed 933,264 - Hualien Plant
suffered from bone fracture. On Jan. 3, 2020, he was discharged from
Concrete hospital and continued to receive out-patient treatment and scheduled
to be assessed by an occupational specialist doctor on May 31 for the
Yuan Long
Stainless Steel
475,288 43,296 possibility of returning to work.

Ya Li Precast 109,440 62,400 Fu Ming (Da) One employee had a motorbike accident on the way 108/11/09~
Transport back to home from work. 109/06/01
Nanhua Cement 47,675 20,440
Note: At least 6 months for a heavy occupational injury recovering to the condition before the injury.
Chiahui Power 1,386,349 474,240
Fu Ming (Da) Transport 832,656 - The data of the cement industry is from the “2016 to 2018 Comprehensive Injury
Index Average Value of All Industries” published on February 14, 2019, by the Plat-
form of Occupational Safety and Health Management System Performance Recog-
Note 1: - representing no statistics nition Information and Application.
Note 2: The non-employees are the ones working on-site without employement relationship but being
supervised by the on-site chief or assigned by the contractor.
ASIA CEMENT CORPORATION
CORPORATE SOCIAL RESPONSIBILITY REPORT 101
 Enhancing and managing employee health

Worker health check and management Maternal health protection for female laborers Protection of abnormal workhour, human-
factors engineering and workplace violence
According to the Occupational Safety and Health The “Operational procedure of maternal health Occupational Safety and Health Act stipulated “the
Act and Labor Health Protection Rule, new workers are protection for female laborers” was formulated in ac- procedure of preventing the diseases caused by work-
required to submit health check report for making the cordance with Occupational Safety and Health Act and load” and “the procedure of preventing musculoskel-
selection of work type. Full time workers are usually a chart of “the evaluation of the harzards to maternal etal diseases”, risk evaluation and survey of needs
required to do routine health checks and special health health and the arrangement of adaptive work” was were conducted via scale measurements, database
checks for the work specifically harmful to the health. provided to the laborers of this category to fill. The was installed for making comparisons and the labor-
The results of the health check are used to classfy the chart was sent to the medical personnel for evaluating ers risky at work were handled properly. In addition,
control and adjustment of the work type based on the and arranging suitable work in order to protect female the seminars relating to the prevention of workplace
condition of health. and maternal laborers. violence were held to avoid illegal infringements in
workplaces.
Activities improving the health of employees

All business units provide health improvement activ-

ities including healthy weight control (weight reduction)
training class, forum of health, sports club activities,
mental health forum, employee care program, mental
consultation, etc. Hence, workers can work in a safe en-
vironment to maintain both physical and mental health.

Conducting interviews of protecting maternal health

Routine health check Employee health strengthening activity Seminar of presenting employee assistance program

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Program on the advancement of occupational safety and health self-management and its results

Short- Mid- Long-

term term term
Goal
Asia Cement
Enhanced
2018-2020 Goal 2021-2023 Goal 2024-2026
Occupational Receiving Occupational Safety Management
Completing version conversion of Passing the performance recognition of
Safety and Health Excellent Performance Unit and National
optimized management system the Occupational Safety and Health
Management Industrial Safety and Health Award granted by
CNS45001 System, Ministry of Labor
Program Ministry of Labor

Strengthening the leadership

Projects of Enhancing risk management and communication of Increasing the practical Effectively implementing Strictly measuring the results
Enhancing the strategy and implementation occupational results of safety and worker occupational safety of occupational safety and
Implementation of safety and health health training and health management health management
Measures

Annual concrete Hualien Plant passed the Asia Cement headquarter Assigned responsibility areas, Provided knowledge and
(including warehousing and Introduced active–type
results – Core verification of ISO 45001& engaged walking-management skill training based on job
logistic station) reached a safety observation to
business workplace CNS 45001 record of zero incident in and top management tour functions and strictly
correct unsafe behaviors
zero incident from in June of 2019. one-million working hours. inspection measured the results
2018 to 2019

Continuing the
Hualien Plant continues to Expected to pass the Planned to participate the Planned to participate the
enhancement and performance recognition of contest of National Industrial
Create a culture of
undertake the new version selection of excellent
future development the Occupational Safety Safety and Health Award business safety and build a
of risk evaluation and risk and Health System, performance units conducted zero incident healthy
conducted by Ministry
control measures Ministry of Labor, in 2021. by Ministry of Labor in 2022. of Labor in 2026. workplace.

ASIA CEMENT CORPORATION

CORPORATE SOCIAL RESPONSIBILITY REPORT 103
 Striving for the essential safety and developing
safety facility with the spirit of innovation
Auto-resetting railing
Rising air duct safe guarding platform
Since there are a lot of workplaces with high
The rising air duct of preheater is usually several tens of elevation, the workers often forget to reset railing
meters high with a very narrow space for operation, hence, it is after opening and expose themselves in a danger
risky that workers or objects may fall down. For ensuring the of falling, furthermore, the springs used in the envi-
safety of the workers, the air duct was equipped with a safe ronment of the plant may easily get rusty and cause
guarding platform on every floor. The high-strength and fully malfunction. Hence, the Company developed and
covered safe guarding platform can not only prevent the objects installed auto-resetting mechanisms on platforms or
from falling down to the lower floor, but also provide a platform channels to reset the ralings by using the design of
for safe operation. eccentric shaft.

Observation tour A platform equipped in the air duct

Rotary kiln protection cover

During the overhaul period of the rotary kiln, the skin within
the kiln may have the risk of peeling off, to ensure the safety
of the workers in it, a aluminum-alloy tunnel is equipped for
the protection which can effectively shield the workers from the
falling objects.

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 A story of an Asia Cementer – An interview of occupational health and safety
Asia Cement implementing the safety policy and health activity, talking about
the journey of striving for occupational safety and health Taking a picture after signing the Safety Partner Declaration

Tai-ching Chou-the Director of Asia Cement Occupational Safe- and Health Management Forum and Disaster Prevention Obser- Asia Cement takes care of the health of employees both phys-
ty and Health Office talked about the measures taken by the Com- vation” and an “Observation of Pre-mixed Site Disaster Prevention ically and mentally. In addition to the health check at the time of
pany:In compliance with the updated government laws and inter- Demonstration”. Asia Cement also received the “cement plant site employment and the annual routine or special
national standard, Asia Cement updated the original occupational facilitation” provided by Occupational Safety and Health Administra- check on the job to learn the physically conditions of the em-
safety and health management system CNS15506+OHSAS 18001 tion to locate the potential risks for improvements, for the purpose ployees, the Company also hires professional medical doctors to
from the TOSHMS national standard CNS 15506 in early days to of increasing the management performance and to lower the rate of do the evaluation, to provide the suggestions and to take the nec-
CNS45001 after the release of International Standard ISO45001. In occurring occupational disasters. essary health protections. Such as individual hearing protection
May and August of 2019, Asia Cement had passed the certifications Adopting the concept of essential safety in the management of plan, respiratory device protection plan, etc. Regarding the mental
of ISO45001 and CNS45001 standards in the operation of its man- occupational safety and joining the company founding spirit of “in- health care, the Company delegated Hsinchu City Life Assoication
agement system, thus, improved the performance and reached the novation”, Asia Cement had developed and improved a lot of safety to initiate an “employee assistance program” to provide services to
goal of zero-disaster. It is planned that by 2021 the Company will equipment (facilities) in the past years. For example, the rising air employees and family members for solving mental issues. Each
reach the goal of “recognizing the occupational safety and health duct of the preheater was very high vertically, it was dangerous to individual case or employee is kept confidentiality, the Company
management performance” by Occupational Safety and Health Ad- construct a scaffold from the ground which was at the risks of falling does not have any records. For example, in the event that an occu-
ministration. objects, falling of workers and collapse, after the evaluation, safe pational disaster is occurred, the rescuer may possibly have mental
General Manager Lee of Asia Cement strives for pushing for- protection platforms were built by using I-beams at proper heights post-traumatic stress disorder and needs to be cared; employees
ward the occupational safety and health. When he was the chair- for effectively preventing the dangers caused by falling objects and having alcohol addiction or depression will be cared or referred to
man of the industrial association, he realized that occupational safe- also for using them as the safety plaforms for work as well. Oth- proper medical institutes for treatment.
ty and health management was critical in the sustainable operation er examples, the strength of the iron chain on the straight ladder Asia Cement endeavors to the management of occupation-
of the core business, hence, aggressively pushing the association platform was not enough and unsafe, an auto-reset railing was de- al safety and health. It has reached the goal of zero-disaster two
to become a safety partner of Occupational Safety and Health Ad- veloped; the skins of the cement kiln attached on the bricks of the years consecutively. The Company has reached the short and mid-
ministration. It was expected that the occupational safety manage- kiln were knocked-off by mechanical vibration prior to replacing with term goals of its management plan earlier than the scheduled time,
ment of cement industry could be upgraded through the cooper- new kiln bricks; a channel-type aluminum alloy protective shield it is expected to continuously maintain a friendly workplace, so that
aton with Occupational Safety and Health Administration to share was developed to prevent the dangers caused by falling objects employees can work safely, happily and keep the health.
the resources. All members of the association joined the Safety and to ensure the safety of workers. Asia Cement shared the di-
Partner Program, Asia Cement worked with the association and the saster-prevention plannings and facilities with other companies in
partners to take the initiative in holding a “Cement Industry Safety the industry through observation tours.
ASIA CEMENT CORPORATION
CORPORATE SOCIAL RESPONSIBILITY REPORT 105
 Asia Cement value chain—
management syste
03
MANAGEMENT
Mining area
OF VALUE CHAIN Asia Cement Plant Production

3 GOOD HEALTH
Bulk cargo train
AND WELL-BEING
Fu Ming Transport In compliance
with the government policy of
replacing old vehicles with
new,the Company sequentially
replaced three truck tractors from
phase 3 mode to phase 5 model. Bulk cargo truck

4 Cement carrier
QUALITY
EDUCATION Asia Cement
supply chain
Ya Tung Ready-mixed Concrete
supporting technical vocational
system, in 2019a total of 273
students and faculties from 4 Fu Ming (Da) Transport
schools visited the plant facility.

11 SUSTAINABLE
CITIES AND
COMMUNTIES
Ya Tung Ready-mixed Concrete
established the first Yatung Concrete Logistics, Supply
Technology and Research Center
(YTRC) in Taiwan focusing on concrete Ya Tung Ready-mixed Construction site
products. It performs raw material Concrete Corp
control and rapid screening, durability
and anti-pressure test and finished
products test to ensure a safe service
for concrete products and buildings.
USE

Ya Li Precast
Industrial Corp

12 RESPONSIBLE
CONSUMPTION
AND PRODUCTION
Ya Li Precast adopted the production by unit
method. It embedded RFID code into
components to build database for controlling
material. The components can be reused in
different places after disassembly.

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 7
Yuan Long Stainless Steel had installed four verification
systems up to 2019 including environmental management,
energy management, occupational safety and health, and
AFFORDABLE quality management systems.
AND CLEANENRGY

In 2019, Yuan Long Stainless Steel installed a

9
public facility remote monitoring system through
cloud platform to remotely monitor and correct
abnormalities.
INDUSTRY,
INNOVATION
AND
INFRASTRUCTURE
Yuan Long Chiahui Power
Stainless Steel Generation Plant Chiahui Power adopted the energy saving
action items including adjusting the running

7
mode of the power generation equipment to
Water Quench Blast increase the efficiency. Each year the GHG
emission can be reduced by 17,236 tons.
Furnace(Steel Plant) AFFORDABLE
AND CLEANENRGY
Desulfurized Gypsum
(power plant)

Chiahui Power strives for occupational safety

8 DECENT WORK
AND ECONOMIC
and health. It joined the zero-disaster
workhour record maintained by OSHA of
Ministry of Labor. Since April 1, 2009, the
Plant has kept a zero-disaster workhour
GROWTH record.

Recycling Waste Recycling Waste and

By-products
and By-products Chiahui Power promoting the education of

4 QUALITY
EDUCATION
clean and low carbon emission natural gas
power generation.

Nanhua Cement

Nanhua Cement is driving circular economy.

The CO2 equivalent emission can be reduced
by 776 kilogram for every ton of furnace slag

9
produced, comparing to cement.A total of 263
thousand tons of GHG emission was reduced.
INDUSTRY,
INNOVATION
AND
INFRASTRUCTURE

Slag, Limestone Powder

7

Civil Engineering Portland cement

ASIA CEMENT CORPORATION
CORPORATE SOCIAL RESPONSIBILITY REPORT 107
 Sustainability 3.1 Energy saving plant- Yuan Long Stainless Steel
Yuan Long Stainless Steel was established
on December 9, 2005. The total value of the as-
sets is NT$5 billion with the land size of 73,000
square meters. The planned production capacity
is 130,000 tons per year with the main product of
BA finish stainless steel coils. It also buys and
sells various types of stainless steel coils.
Yuan Long Stainless Steel has installed four
verification systems up to 2018 including environ-
mental management, energy management, occu-
pational safety and health, and quality manage-
ment systems.
Yuan Long Stainless Steel established an
energy management system including pol-
icies and goals. It also adopted action items
to aggressively make the upgrade of energy
equipment including: improving air compressor
energy saving, improving air source pressure
leak, reducing the needs of air supply pressure,
increasing air compressor running efficiency of
the whole plant; increasing the speed of an-
nealing furnace production line without sacrific- Environmental management Energy management system Occupational safety and health Quality certification ISO 9001
ing the annealing quality of stainless steel to
save unit power use and hydrogen use; actively system ISO 14001 ISO 50001 management system ISO 45001 Valid period of the certificate
adjusting production process to activate the idle Valid period of the certificate Valid period of the certificate Valid period of the certificate 2022.08.30
capacity and to effectively reduce product unit 2022.07.21 2020.11.18 2022.07.08
power consumption.

Yuan Long Stainless Steel in coordination Yuan Long Stainless Steel Energy Saving and
with UN SDGs— Highlights Carbon Reduction Program
Replacing Reducing the Power saving Replacing the Increasing

7
SDGs7.3 Yuan Long Stainless Steel installed four Replacing
verification systems up to 2019 including SP1 150BAR lighting of hours of turn- of BA1 high bay lights the efficiency
AFFORDABLE environmental management, energy man- production ing-on ZM2 oil high-voltage in building L to of pure water
AND P1 45KW
CLEANENRGY agement, occupational safety and health,
oil hydraulic building to hydraulic area transformer energy saving PUMP A
and quality management systems.
motor LED lighting type

54,312 16,250 12,877 116,508 47,987 88,476

9 INDUSTRY,
INNOVATION
SDGs9.4 In 2019, Yuan Long Stainless Steel in-
stalled a public facility remote monitoring
system through cloud platform to remotely
AND INFRA
monitor and correct abnormalities.
Total 336,410
STRUCTURE

S
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Public facility remote monitoring system HMI
In 2019, Yuan Long Stainless Steel installed a public facility remote monitoring
system through cloud platform to remotely monitor and correct abnormalities. The
e-monitored items include industrial water use, water treatment, pure water system, Yuan Long Stainless Steel
cooling water, compressed air, furnace area, flood-control catch basin, natural gas
and hydrogen. By joining cloud management technology, both public system and A public facility remote monitoring system
manufacturing process can be included in the scope of cloud monitoring for better
performance and for the visualization and analysis of equipment energy consumption
information to overall grasp the energy and efficiency information and to discover the Webpage of webpage of water webpage of pure
space of energy saving in order to improve the industrial competitiveness. industrial water treatment water system

Webpage of Webpage of Webpage of

cooling water compressed air furnace area
The operations are centralized and visualized through PLC pro-
gramming link and HMI monitoring images.
Webpage of Webpage of moni-
Programming link can automate the manufacturing process and re- flood-control catch toring natural gas
ducing workers’ waiting and operation time. basin and hydrogen

Through quantification of the systems, it is possible to know the dai-

ly use of raw material in order to understand any abnormal condition
in the production line which needs immediate treatment.
Staffs can attain statistic data from HM1images to reduce the time
to take meter readings and the waste of papers.
Staffs can learn the status of equipement through the newly in-
stalled digital instruments and to directly make the switching on HMI
to reduce on-site worker operation time. A total of 4 workers were
reduced and transferred to other departments.
During the manufacturing process, one step can be seamlessly
linked to the next through newly installed digital measurement in- Yuan Long Stainless Steel had changed its way of using electricity
strument, such as water hardness tester, the detected digital signal by extending the energy saving measures to the entire plant to save en-
can be used to allow one step of the manufacturing process seam- ergy, the emission of GHG to the atmosphere and the carbon footprint
lessly linking to the next step to reduce the time and manpower by are reduced. In 2018, the energy saving measures were continuously
repeat checks, and to save the material used in the manufacturing taken both in the operation control and the replacement to high effi-
process (e.g. city water, RO film, power…). cient equipment in order to avoid the waste of energy. In 2018, the total
electricity saved was 674,877KW/h resulting in the reduction of GHG
emission and the lowering of global warming.

ASIA CEMENT CORPORATION

CORPORATE SOCIAL RESPONSIBILITY REPORT 109
 Sustainability 3.2 The Driver of Circular Economy-Nanhua Cement

Nanhua Cement was established in 1968 and

became a subsidiary of Asia Cement in 1979. In
coordination with the cement industry east bound
policy promoted by the government, it built a plant
in Long Jin District, Taichung City in 1994. Nan-
hua Cement adopted the mission of high perfor-
mance, low energy consumption and 4R envi- Public Work
ronmental protection, it became a pioneer in the
industry on resources recycling and reuse, envi-
Blast
ronmental friendly green construction material pro- Furnance Cement
duction and environmental protection material.
During the slag powder process, Nanhua Ce- Water Quench Slag Powder
Steel Mill Blast Furnace Slag Portland Cement
ment recycled the wastes of water quench blast
furnace slag and desulfurized gypsum, and then Nanhua
added limestone to grind into recycled products in- Cement
cluding slag powder and limestone powder. Slag
powder is mixed with Portland cement to become Desulfurization Limestone
blast furnace cement and used in construction Power Plant Slag Powder
work. Its advantages include environmental friend-
ly, energy saving and high quality of construction
work.

Nanhua Cement in coordination with UN SDGs—Highlights

Energy

7
The electrical power and coal saved by producing one ton of slag Quality The later-period strength of concrete can be in-

11
Saving powder is approximately 40 equivalent KW and 96 kg respectively, creased.
AFFORDABLE SDGs7.3 comparing to the production of cement. SUSTAINABLE SDGs11.2 The alkali-aggregate reaction can be restrained
AND CITIES AND
CLEANENRGY COMMUNTIES effectively to increase the durability of concrete.
Low heat of hydration which can effectively re-
duce the cracks of mass concrete caused by
Environmental Slag powder is a low carbon green material which can be used to high temperature.

9
Protection replace a portion of cement to reduce the excavation of limestone. High water impermeability and denseness which
SDGs9.1 Approximately 1.2 tons of limestone is used for producing a ton of can reduce the corrosion risk of reinforcing steel.
INDUSTRY,
INNOVATION clinker (Reduce), the side product of water quench blast furnace slag Effectively resist the corrosion from sea water
AND INFRA SDGs9.4 from steel mill can be reused (Reuse), the natural resource limestone
STRUCTURE and strong acid.
can be recycled (Recycle). The emission of CO2 equivalent weight of
776 kg can be reduced for the production of each ton of slag powder
than that of cement.

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 Nanhua Cement changed its air compressor
to variable frequency control which resulted the In 2019, Nanhua Cement recovered the performance of the roller
electricity saving of 624,075 KW/h and the CO2 bead welding in the rolling machine and saved the power of 216,696
reduction of 346 metric tons, in the expenses for
KW/h per year. The results of unit product GHG emission and water
environmental protection, a total of NT$578,890
was used for the maintenance of dust collection usage were also very good. Comparing to 2016, the unit product GHG
equipment. While the Company is striving for en- emission and water usage were dropped by 26% and 4%.
ergy saving and carbon reduction, its products
are recognized with good quality. Taking the wa-
ter quench blast furnace slag and desulfurized 0.040
0.034
gypsum from steel mill and power generation
0.035
plant, Nanhua Cement recycled them by making
into furnace slag and limestone powder, a reali- 0.030
zation of circular economy 0.024 0.025 0.025
The lime stone powder and water quench 0.025
blast furnace slag produced in Taichung Plants 0.020
1&2 of Nanhua Cement passed ISO9001 man-
agement system verification standard in 2019. 0.015

Nanhua Cement Energy Saving and Carbon

0.010 26%
Reduction Program 0.005
ISO9001 Management System
Recovering the performance of the roller bead welding Verification Certificate 0.000
in the rolling machine 216,696 KW/h per Year
2016 2017 2018 2019

Nanhua Cement Product GHG Emission Strength (T CO2e/T product)

285,000
282,458
280,000
10.0
275,000 8.3
271,328 8.0
270,000 6.9 6.4
263,381 5.8
265,000 6.0
258,161
260,000

255,000
4.0
4%
2.0
230,000
0
245,000
2016 2017 2018 2019
2016 2017 2018 2019

Carbon reduction comparing to cement production(T CO2e) Nanhua Cement Product Water-use Strength (Liter water /T product)

ASIA CEMENT CORPORATION

CORPORATE SOCIAL RESPONSIBILITY REPORT 111
 Sustainability 3.3 A New Conduct for the Safety of Living-Ya Tung Ready-mixed Concrete

Ya Tung Ready-mixed Concrete Corp. was spun off from Asia Cement Prod-
uct Sales Department. It insists on running the core business for more than 40
years with the philosophy of “professionalism, dedication and offering the best
services”.
The quality of concrete was deliberately requested by people since the oc-
currence of two violent earthqauakes in 2016 and on Feb. 6, 2018. In order
to ensure the delivery of highest quality concrete to the hands of customers,
from raw material, process to final products, Ya Tung Ready-mixed Conccrete
requested the stability of raw material and the advancement of processes to
produce good quality products. Hence, consumers can feel at ease and safe Chloride Permeability Tester Laser Particle Size Analyzer
for the living.
Thus, Ya Tung Ready-mixed Concrete established Yatung Concrete Tech-
nology and Research Center (YTRC). It is the first high level laboratory for Finished
concrete products in Taiwan which is equipped with the most professional team product test
and most precised indstruments. The lab is operated by joining academic and
practical knowledge to develop scientific and real-time inspection methods. The
past management model of “running by instinct and experience” was no longer
adoped, the optimized selection and
control were applied to the concrete
production process.
YTRC is equipped with analysis Raw material
instruments to control raw material control and
including: X-ray Fluorescence An- rapid screening
alyzer (XRF) and X-ray Diffraction 1 to 3 Computer Server
Analyzer (XRD) to inspect gravels. Oil Pressure Tester
Through big data analysis, non-nat- Durability
ural sandtones such as slags can be and
removed from concrete material. anti-pressure
In addition to the basic tests, tests
the Company used microscopic test
for the qualitative and semi-quanti-
tative data collection and analysis.
It also developed a “sandstone fur-
nace slag quick screening test meth-
od (AMS)”, the first of its kind in the
industry, which was recognized by
experts and granted with a patent
in Taiwan. Ya Tung Ready-mixed
Concrete uses this method to test
the quality of sandstone in Taiwan.
Ya Tung Ready-mixed Concrete in-
spects all gravels to ensure the qual-
ity and safety of concrete produced Ya Tung Ready-mixed Concrete Corp.
X-ray Fluorescence (XRF) X-ray Diffraction (XRD)
by it for all customers. passed ISO9001 management system
verification standard in 2018.
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Ya Tung Ready-mixed Concrete in coordination with UN SDGs—Highlights Yuon Kung Plant of Ya Tung Ready-mixed Concrete received
the honor of excellent green purchase company in 2019. The val-
ues of purchases in 2018 and 2019 were NT$85,150,331 and
NT$74,514,897 respectively.

4
SDGs4.3 Ya Tung Ready-mixed Concrete Corp. welcomed the visits of stu-
dents from vocational schools, an action of supporting and building
QUALITY
EDUCATION a bridge between the industry and the students.

11
SDGs11.1 From raw material, manufacturing processes to finished products,
Ya Tung Ready-mixed Concrete Corp. strictly controls the stabili-
AFFORDABLE
AND
ty of raw material and the advancement of manufacturing process
CLEANENRGY in order to produce high quality products, hence, consumers can
safely use the products on the construction of buildings.

12
SDGs12.5 Ya Tung Ready-mixed Concrete in Taiwan uses colorimeter to re-
RESPONSIBLE
place the use of color cards to make the comparison by human
CONSUMPTION
AND
eyes. The color value of raw material has been quantified and rep-
PRODUCTION resented by data for more precise control to lead to stable quality.

operation locations of Ya Tung Ready-

mixed Concrete in Taiwan routinely clean
the surrounding roads and accept visits
from schools to show the support to vo-
cational education system. In 2019, a to-
tal of 273 students and teachers from 4
schools visited the plant facility.
In 2019, a ready-mixed concrete plant observation tour and sem-
inar of occupational safety and health management and disaster
prevention was held, 3 ready-mixed concrete and 5 cement plants
with a total of 47 people participated.
In January of 2019, Ya Tung Ready-mixed Concrete worked with
a customer Chung Li Construction to exclusively supply products to
its “An Sing Tzai No. 5” construction project and received the certi-
fication of assuring the supply of concrete issued by Building Safety
Certification Association. Tainan Zu Li Construction “Yuong Ch-
uang Jin” project, in which the concrete was exclusively supplied by
Ya Tung Ready-mixed Concrete, received the certification of peace-
of-mind houses in April issued by Building Safety Certification Asso-
Hanban Plant of Ya Tung Ready-mixed Concrete is a ciation. Ya Tung Ready-mixed Concrete exclusively supplied con-
project plant for Suhua Highway Construction with the mis- crete to “Da Hong” project of Yuo Ge Construction in central Taiwan,
sion of improving the transportation quality in Eartern Taiwan the project was completed in 2016 and received “Diamond Class
and providing a safe highway to the residents in the eastern Smart Building Award”.
area. Suhua Highway was opened for public use in January
of 2020, all employees felt the honor of it.
ASIA CEMENT CORPORATION
CORPORATE SOCIAL RESPONSIBILITY REPORT 113
 Sustainability 3.4 Quakeproof and Low Carbon Construction Method – Ya Li Precast
Ya Li Precast Industrial Corp, the creator and promoter of
precast construction method in Taiwan, provides precast prod- Enhancing
cuts including: precasted structural parts, precasted external Overall High
Quakeproof Precision
wall plates (external curtain wall) and tunnel lining segments. Capability
Comparing to cast-in-place, the industrial standardized and
modulized construction method is used in the production of
precast parts, a standardized production process ensuring the
System
quality of precast products. Integration Ensuring
Precast construction method is gradually adopted in con-
Precast Pc Material
struction and civil engineering, it effectively is able to offer Benefit Of Strength
good quality to buildings, maintain the toughness of quake- Curtain Wall
proof, shorten construction period, save energy and reduce Method
wastes. High degree of quakeproof feature is required by the
buildings in Taiwan due to many earthquakes. This construc- Financing High
tion method is superior and much needed especialy for today’s Cost Construc
situation where there is a shortage of technical personnel to Reducing tion
maintain quality urban construction and environment. Interest Benefit
Rate

The Concrete Lab of Ya Li Precast Industrial

Quality certification ISO 9001 Reducing
Corp. was certified by TAF Lab Shortening Impact To
Expiration date of certificates Work Period
in the area of civil engineering test. Environment
May of 2021
Expiration date of certificates Mar. of 2020

In responding to Asia Cement’s circular economy in recycling and

reusing wastes as alternative material or fuel, Ya Li Precast, a sub-
sidiary of Asia Cement, adopted the concept and joined an European
Ya Li Precast in coordination with UN SDGs—Highlights Union Test Program conducted by Professor Huang (retired) of National
Taiwan University of Science and Technology, which recycled construc-
tion wastes and filled into finished products. Hence, the land, society

9
SDGs9.4 The precast is a construction method adopted in an industrialized fac- and enterprises of Taiwan has the opportunity of recyle and reuse.
tory with a consistent manufacturing process, hence, the strength and
INDUSTRY precision of the construction members are ensured to be higher than 3.0
,INNOVATION
AND the ones cast-in-situ.
INFRASTRUCTURE
2.1
1.7
11
2.0 1.6
SDGs11.1 The precast construction method is steadily adopted more in the con-
struction and civil work, which is capable of providing good quality and 1.4
SUSTAINABLE
CITIES AND maintaining the resilence of resisting earthquakes.
COMMUNTIES
1.0

12 RESPONSIBLE
CONSUMPTION
AND
SDGs12.5 Precast construction method can shorten construction period, save en-
ergy and reduce wastes. 0
PRODUCTION 2016 2017 2018 2019

Water usage of a unit production output (Ton-water/M3)

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 Comparing precast and cast-in-place products, under the same situ- The process of partial precast concrete layered construction
ation, the GHG emission of precast products is reduced by 24.4%. method for RC structural frame
Ya Li Precast provides customer needs-oriented design services.
During the design phase, it considers the quality of concrete parts,
overall economic feature, on-site safety and constructability (shorten
construction period safely), and fully utilizing the advantages of precast
concrete method in accordance with the design of architect. Hence, the
Company can provide the best performance project to customers.
300

210 Cast-in-situ column construction Installation of PC girders Installation of PC beams

or PC column installation. (scaffolding may be needed between PC girders.
200 177 according to the structural
calculation).
101
100 72

0
2016 2017 2018 2019
CO2 reduction comparing to cast-in-place(t CO2e)
120 Cast-in-situ concrete finished. Mechanical, electrical and Deck Installation.
plumbing works and installa-
100 87 tion of reinforcement for floor
76 77 slab and beam upper part.
80 72 Advantages
60

40

20
Construction
0 period signifi Guaranteed Safety
quality
2016 2017 2018 2019 cantly reduced

Emission from Unit Production Volume (kg CO2e/M3)

4.0
1.6 2.1 1.7
2.0 1.4 Main frame structure can be Quality is guaranteed The number of workers
speedily completed by PC due to standardized on site can be reduced,
0.0
beam-column, also mechan- and modular process the cleanness, tidiness
2016 2017 2018 2019 ical, electrical and plumbing in factory. and circulation on site
works can continue at the are improved.
Water usage of a unit production output (Ton-water/M3) same time, Thus, the con-
struction period is reduced
significantly. ASIA CEMENT CORPORATION
CORPORATE SOCIAL RESPONSIBILITY REPORT 115
 Sustainability 3.5 Ensuring the Safety of Transport- Fu Ming (Da) Transport
Fu Ming (Da) Transport Corp. delivers raw material and finisged prod- Fu Ming (Da) Transport has installed three verification systems up to 2018 including environmental man-
ucts for Asia Cement. Adhereing to the founding spirit of “sincerity, dil- agement, occupational safety and health, and quality management systems.
igence, thrift, prudence and innovation”, it strives for offering transport
services to customers based on the quality policy of “safe, rapid and re-
sponsible”.
According to the statistics of Ministry of Transportation and Commu- Environmental management
nications, the death toll within 30 days after the occurance of road traffic system ISO 14001 Internet of Care For
accidents reaches 3000 people each year, equivalent to the number of the Valid period of the certificate Vehilces and Driver
2021.9.19
IT safety Training
earthquake occurred on Sep. 21, 1999, in Taiwan. Thus, it is extremely
important to ensure the safety of transport. Transport industry plays an
important role in the industrial chain, many vehilces running on roads every
day. The raw material or products needed by various enterprises can be Occupational safety and
safely delivered on time and with the correct quantity and quality to them health management system
only through safe and effective transporting process provided by reliable OHSAS 18001
and responsible transport companies. Valid period of the certificate
For reaching comprehensive management, Fu Ming Transport is not 2020.2.10
only equipped with various vehicles and information software and hard- Equipment
ware, but also exercised positivie and correct attitude by implementing risk Driving Risk Purchase And
management on every shipment. It takes care of the health condition of Management Maintenance
Quality certification ISO 9001
each employee, each detail and each issue, to gain improvement and to in- Valid period of the certificate
crease the quality of transporting, so that it can move forward to the goal of 2021.9.19
“safety and customers are first, employee are mportant, and zero disaster”.
Fu Ming Transport launched transport safety warranty measure

Fu Ming Transport in coordination with UN SDGs—Highlights

3
SDGs3.6 Fu Ming Transport strives to increase the quality of transport with the
goal of “safety first, customers first, caring employees and zero inci-
GOOD dents”.
HEALTH AND
WELL-BEING

11 SUSTAINABLE
CITIES AND
SDGs11.2 Fu Ming Transport continuously invests in R&D, innovation and improve-
ment, it can properly apply new technologies in fleet transport business.
COMMUNTIES

8 DECENT
WORK AND
SDGs8.8 Fu Ming Transport has created a comprehensive transport safety sys-
tem for the driver colleagues.
ECONOMIC
GROWTH

Fu MingTransport personnel training

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 In compliance with the government policy of replacing old vehicles with new, the Smart Internet of Things (IoT) is prevailing due to the advancement of
Company sequentially replaced three truck tractors from phase 3 mode to phase 5 globle information and communication technology, which brings in the opti-
model. mized automatice operation process to replace the traditional tedious manual
In compliance with the new regulation in 2019 of installing driving visual field as- operation. Fu Ming Transport continuously develops and improves new tech-
sistance system on all large vehicles, Asia Cement has started to sequentially install nologies in order to apply to the fleet transporting business. The safety tech-
the system on vehicles by way of applying for the government subsidy in saving costs. nologies include: GPS fleet management system, DVR dashboard camera,
Owing to the fact that the rate of vehicle accidents is relatively high on the first day after vehicle management system App, Internet of Vehicles (IoV) remote control
long holidays, to avoid such accidents occurred due to insufficient rest of the drivers and monitor, active collision avoidance pre-warning system (Mobileye).
during the long holidays, the Company designed a Mental Status Self-check Chart and
requested the supervisor of the fleet and the security guards at the gate to check the
physical and mental status of the drivers for the prevention of accidents.
The transport system does not just include vehicles, most importantly, the drivers.
Fu Ming Transport has created a complete safety system for its drivers including new
drivers in-vehile training and qualification verifying, daily delivery affairs controlling,
good driving behavior cultivating, driver health checking and daily alcohol and blood
pressure tests, defensive driving course and emergency response exercise, irregular
driver home visit and care.

New Delivery
Health
employee affairs
check
training management

Defensive Home visit Fu Ming Transport emergency response exercise

training and care
Mobileye provides the func-
Driver training and care tions including detecting running
distance too-close, lane departure
warning, rear-end collision preven-
tion and pedestrian collision avoid-
In order to reduce fuel consumption and waste gas emission, Fu Ming Transport ance. It sends pre-warning signal
continuously purchases new vehicles based on green purchase standard to replace to drivers to facilitate the proper
the old ones. It purchases vehicles with superior safety features, high efficiency of en- driving, to increase the driving
gine fuel consumption, complying with EURO 5 standard to meet the emission require- alertness of drivers and to reduce
ment of EU environmental protection regulation. Furthermore, it prepared a complete the accidents. Active collision avoidance pre-warning
vehicle routine maintenance system to maintain the good condition of them. system (Mobileye)

ASIA CEMENT CORPORATION

CORPORATE SOCIAL RESPONSIBILITY REPORT 117
 Sustainability 3.6 A Safe and Energy-saving Low Carbon Power Generation Plant – Chiahui Power

Environmental management
In coordination with the government policy of The action plan launched by Chiahui covers:
Current issue date: 15 November 2019 Original approval(s):
Expiry date: 14 November 2022 ISO 9001 - 25 December 2004

system ISO 14001

Certificate identity number: 10231087

using clean energy to generate power, Chiahui Adjusting running mode of power generation Valid period of the certificate 2020.6
Power Corp. was founded in 1996 and high effi- equipment to increase efficiency, Power saving Certificate of Approval
ciency, low pollution, high quality and high safety by improving the power generation process and This is to certify that the Management System of:

gas combined cycle power generation units were saving the power consumed by office air condi- Energy management system Chiahui Power Corporation

installed. The main purpose of this power plant tioners and lighting equipment. The power saved ISO 50001 No. 688, Sung-Tsi- Chiao, Sung Shan Village, Ming Hsiung Hsian, Chia Yi County, Taiwan

has been approved by Lloyd's Register to the following standards:

Valid period of the certificate 2020.10

is for environmental protection and local area de- per year is up to 7,745,303 KW/h. The saving of ISO 9001:2015
Approval number(s): ISO 9001 – 0065823

velopment, in addition to the return of investment. natural gas per year by improving power gener- The scope of this approval is applicable to:

The goal and ideal of investing in power gen- ation process is 9,411,925 M3. GHG emission GHG inventory ISO 14064-1 Management, Operation and Maintenance Process for Combined Cycle Power Plant.

eration business by Asia Cement are to build a reduction is resulted every year from these two Valid period of the certificate
safe, clean and reliable power plant which can savings. Audited every year
provide stable power supply to people in Tai- Chiahui Power has installed five (5) verifica-
wan. Chiahui Power adheres to this mission and tion systems up to 2019 including environmental Occupational safety and
strives to become a first-class company in the management, energy management, green-house health management system Rhett Wang

power generation industry. gas inventory, occupational safety and health, OHSAS 18001
Area Operations Manager, Greater China

Issued by: Lloyd's Register Inspection Limited Taiwan Branch

quality management.
for and on behalf of: Lloyd's Register Quality Assurance Limited

Valid period of the certificate 2020.6 Lloyd's Register Group Limited, its affiliates and subsidiaries, including Lloyd's Register Quality Assurance Limited (LRQA), and their respective officers, employees or agents
are, individually and collectively, referred to in this clause as 'Lloyd's Register'. Lloyd's Register assumes no responsibility and shall not be liable to any person for any loss,
damage or expense caused by reliance on the information or advice in this document or howsoever provided, unless that person has signed a contract with the relevant Lloyd's
Register entity for the provision of this information or advice and in that case any responsibility or liability is exclusively on the terms and conditions set out in that contract.
Issued by: Lloyd's Register Inspection Limited Taiwan Branch, Room 1008, 10th Floor, No. 96, Section 2, Zhongshan North Road, Zhongshan Dist., Taipei City 10449, Taiwan
for and on behalf of: Lloyd's Register Quality Assurance Limited, 1 Trinity Park, Bickenhill Lane, Birmingham B37 7ES, United Kingdom
Page 1 of 1

Quality certification ISO 9001

Valid period of the certificate Chiahui Power passed the quality certification
2022.11 of transferring to ISO 9001 and updated the
relevant requirements of the company through
good management guidelines.

Chiahui Power in coordination with UN SDGs—Highlights

7 SDGs7.3 Combined cycle gas turbines (CCGT) with the advantages of high ef-
ficiency, low pollution, high quality and high level of safety were used.
AFFORDABLE
AND
CLEANENRGY

8 DECENT
WORK AND
SDGs8.8 “Occupational Health and Safety” has always been highly valued in
Chiahui Power, since April 1, 2009, till present time, no any incident
occurred in the facility.
ECONOMIC
GROWTH

9 INDUSTRY,
INNOVATION
SDGs9.4 Building a safe, clean and reliable power generation plant to provide
reliable electricity to our citizen.
AND
INFRASTRUCTURE

S Ecological photo
118 C
 Chiahui Power carried out occupational health and safety. It joined the ze-
ro-disaster workhour record held by OSHA of Ministry of Labor. Since April
1, 2009, there is not any disaster occurred in the Power Plant, the record is
carrying on. In terms of the maintenance of eco-system in the Plant, Chiahui
also keeps good record. Birds, butterflies and flowers are easily seen in the
Power Plant.
The net thermal efficiency of Chiahui power generation units has been kept
at the top 2 in Taiwan. In 2019, the net thermal efficiency reached 52.58% and
the reliability of the units was 99.95%.

52.70%
52.59% 52.58%
52.60%
52.50%
52.50% 52.53%
52.40%

52.30% Excellent results of ecological maintenance

52.20%
Chiahui Power planned to
52.10% burn dry low NOx in its second 6,860 6,857
phase of system equipment de- 6,853 6,845 6,846
52.00%
sign, the emission standard will 6,850
51.90% be 459.4 metric tons/year less
2016 2017 2018 2019 than the original environmental 6,840
evaluation committed volume. Its
Average net efficiency of Chiahui Power (LHV)(%) combined cycle gas turbines are 6,830
equipped with selective catalytic
reduction (SCR) equipment to 6,820
100 99.98 further reduce the concentration
100 of NOx emission. 6,810

99.95
99.95 The second phase project
is designed to adopt high effi- 6,880
99.9 cient advanced generators and 2016 2017 2018 2019
99.85
air-cooling system, the water
consumption is lowered by 95% Average net efficiency rate (LHV)(kj/kwh)
99.79 than that of previous generation
99.8
and the waste water discharged
99.75 is reduced by 81% comparing to the previous generation.
99.7 In 2019, the heat needed to generate one KW/h in Chiahui Power was 6,846KJ, the averaged
net thermal consumption was lower than that of 2015. The lowering of heat requirement provided
99.65 the benefit of energy saving and carbon reduction, more friendly to the environment.
2016 2017 2018 2019
Reliablity of Chiahui Power Generation Units (%)
ASIA CEMENT CORPORATION
CORPORATE SOCIAL RESPONSIBILITY REPORT 119
 04
Identify Issue
The management of significant sustainable issues in Asia Ce-
ment is a cycling of continuously improvement. In order to make
the international connection and to reach excellent performance
MANAGEMENT of sustainability, Asia Cement assessed and added a new issue Evaluate
of sustainability-a Dow Jones Sustainability Indices (DJSI), and Engaged
OF SUSTAINABLE a specific issue of cement industry. In terms of the features of
cement industry, the Sustainable Development Charter and the
ISSUES five pillars of Global Cement and Concrete Association (GCCA)
were added. The questionnaires relating to the newly added is- Evaluate Impact
sues will be given to the stakeholders in order to understand
their responses, and the associated sustainable impact will be
evaluated as well.
Confirm and
Disclosure

Asia Cement Sustainable Theme Management Process

Sustainability 4.1
Identifying Sustainable Issues
Health The identification of Asia Cement, Sustainable Develop-
Circular Cement Sustainable issues in- ment Policies of Asia Cement,
& Safety
5 1
Economy cludes both internal and exter- Sustainable Development
nal issues. The external issues Strategy of Asia Cement, Key
are SDGs, ISO 26000, GRI Performance Indexes of Asia
Standards, GRI Guidelines on Cement (KPIs), Regulations
Mining and Metal Sector, Ce- and Systems of Asia Cement.
GCCA ment Sustainability Initiative The Sustainable Develop-
Sustainability (CSI) Index, Communication ment Charter of Global Ce-
4 Charter
2 Process and Opinions Feed-
back from Stakeholders, Topics
Legally Regulated by Financial
ment and Concrete Association
(GCCA) governs the five pillars
Climate and the related guidelines,
Environment Authority, Guidelines on local which are required to be im-
Change
3
And Nature and foreign CSR Awards, CDP plemented by the participated
and Energy Projects, Dow Jones Sustain- members and the results shall
ability Indices (DJSI) and sus- be reported and independently
tainable issues of Global Ce- audited. These sustainable is-
Social ment and Concrete Association sues are considered to be sig-
Responsibility (GCCA). The internal issues nificant which are identified and
are The Funding Spirit of Asia evaluated by the Company.
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Evaluation of the sustainable impact by the concerned issues and the questionnaire survey
In order to accurately analyze the sustainable impact caused by the related issues, referring to AccountAbility Redefining Materiality “Five-Part Materiality Test”, CSR
Committee of Asia Cement performed the analysis of sustainable impact aiming at 29 related issues. It also conducted a survey through questionnaires, a total of 145 effective
copies were collected and calculated based on the weight of stakeholders for the behaviours and concerns.

NGO Environment Group 1

NGO Environment Group 2
Suggesting to comply with ISO
14064-1:2018 and to expand the NGO Environment Group 3
Suggesting to conform to
Aboriginal person 1 boundary of identification report international trends Partner 1
Invester (Categories 3 to 6). Hoping to pay more
Continuing to cooperate with and sequentially introducing attention to the issues of
shareholder 1 TCFD and SBT. Suggesting Asia Cement to
locality to create co-existence maintaining environement transparently disclose ESG
and co-prosperity while persuing innovation sustainability related topics
Providing more assistance
to the development of and economic benefit. to increase competitive
domestic industries, using advantage.
local-made products to
increase the job
opportunity for local labor. Aboriginal person 2
Better and open Employee 1
communication with
employees Continuing the
development to Supplier 1
Government office 1 face new
challenges! Expanding the boundary of
energy management system.
Fulfilling CSR is one of
the necessary conditions
of corporate sustainable
operation. Aboriginal person 3
Hoping to have more Employee 3
communication with and job Employee 2 Partner 2
opportunity for local residents. Sustainable operation and Continuing to contribute back to
contributing back to the the society to allow the public Enhancing the communi-
locality, comforming to have better understanding to cation with local people
government regulations to traditional manufacturing and the presenting of
take care of employeess. industry, such as Asia Cement environmental protection
Government office 2 Eco-park exhibition tour which awareness. Partner 3
received good recognition.
Talents are the capital of a Strengthening climate
company, discovering and strategy and improving the
retaining talents are the keys to General public 1 performance of the
the sustainable operation of a investment to ESG
company. Maintaining natural sustainability!
environment and eco-sys- Academic institute 1
tem are the most important Industry 1 Customer 1
topics of enterprise Contributing and interacting Caring more to the environmental
sustainable operation. to the locality and Striving more for circular economy. protection and the sustainable
community, a corporate development of Taiwan.
model in the locality.

ASIA CEMENT CORPORATION

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 Sustainability 4.2 A strategy of integrating and communicating with the stakeholders

Evaluating And Identifying Stakeholders

Empower
Referring to the five-aspects specified in AA 1000 Stake-
holder Engagement Standard 2015, CSR Committee evaluates High Co llaborate
stakeholders to confirm the materiality of the stakeholders to Asia
Cement, including dependency,responsibility, tension, influence Level Involve
and diverse perspectives.The top 5 categories of stakeholders Engage
are identified after the weighted evaluation: employees, inves-
tors/shareholders, customers, local communities and aboriginal
Negotiate
Medium Consult
The criteria of the stakeholders’engagement Level Engage Transact
Defining the scope of the purpose and the procedure int he
Inform
communication between Asia Cement and the stakeholders in
accordance with the AA1000 SES, forming the matrix of Asian
integrated communication strategy, referring to the excellent
communication factors in the standard and striving for using a
Advocate
communication method with the highest level of integrated strate- Low Level Engage M onitor
gy, including the involvement, collaboration and empowerment to
attain the benefit from the communication. Remain Passive

Integrating the strategic matrix of communication goals

Based on the stakeholder concerns and the integrated communication strategy matrix of the major theme planning, as the strategic goal of Asia Cement’s engage and
communication, and assess the communication benefits accordingly, ensure Effectively respond to stakeholder issues.

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The significant topics concerned by the takeholders the matrix and goals of the communicationstrategy
Local Government NGO Academic Social
Aspects of ESG Significant Topics Employee Customer Invester Partner Community Office Supplier Environment
Group Sector Industry Public

Environmental regulations

Sustainable mining
mountain and biodiversity
Low carbon green
manufacturing
process (cement 4.0)

Emission
Environement
Energy

Raw material

Water risk

Climate strategy

Environmental
education
Occupational safety
and health
Employment
relationship

Society Local community

Relationship between
labor and employer
Attracting and
retaining talents
Human resource
development
Interests and rights of
aboriginal people

Circular economy

Economic performance
Governing Economy
Risk and opportunity
management
Indirect economic
impact

Note 1: EM empowerment , CO coordination , IN participation , C consultation , I informing

Note 2: The matrix of communication strategy listed the top 5 significant topics concerned by the stakeholders (The ones having the same weight of concern are
ranked by the level of impact to sustainability).
ASIA CEMENT CORPORATION
CORPORATE SOCIAL RESPONSIBILITY REPORT 123
 Corporates Sustainability Email

A strategy of integrating and communicating with the stakeholders

Frequency and platform of communication Paragraph of Frequency and platform of communication Paragraph of
Stakeholders Issues Concerned (corresponding communication strategy) Status of implementation in 2019 Response Stakeholders Issues Concerned (corresponding communication strategy) Status of implementation in 2019 Response

Announced significant news in Chinese

Union meetings and English by law.
Implemented circular economy for
Non-routine interview of new employees and
alternative raw material and fuel.
online announcement Legal compliance. Mining mountain visits and safety
Employment relationship. Each union held its union meeting. Public observatory post system and
Occupational Safety and Non-routine update employee work guildelines Circular economy. briefings 28 sessions with 1,116
29 hours of annual average training company website
Health. Yearly supervisor interview and performance Low carbon green people.
for various types of employees. Government Official documents
Sustainable mining meeting manufacturing process. Cooperated with government’s 3-party
Employee Provided comprehensive employee Sustainable cycling1,2
Regulation briefing, seminar or discussion
mountain. Yearly labor-manager meeting Green Cycling 1, 3 agency Risk and opportunity. meeting and expert teams continued to Green Cycling 2
Economic benefit. welfare and bonus. Sustainable mining meeting undertake mining mountain monitoring
Monthly occupational injury online reporting
Environmental protection Implemented the system of two days mountain. Information filing and evaluation.
Employee plans and non-routine education and Conducted Asia Cement Mid-Fushi
laws and regulations. off per week.
training emergency response drill.
E-bulletin board Routinely filing environmental
Group”Far Eastern Magazine” protection and occupational safety and
health information.

Low carbon green

manufacturing
Economic benefit. Annual shareholders’ meeting and investors process. Suppliers assessment
Continued to conduct company visiting
Environmental education. meeting Environmental protection Supplier social responsibility
meeting. Supplier on-site audit or visit
Energy. Company website investor zone Sustainable cycling1,2 laws and regulations. commitment letter. Sustainable cycling 1
Investors/share- Cash dividend yield 7.0%. Telephone or email communication Pushed a 5-year 3-phase cement 4.0
Emission. Public observatory post system Green Cycling 3,5 Sustainable mining
holders Environmental protection Carbon reduction up to 53,686 tons. Suppliers and feedback program.
Green Cycling 1, 3,5

Telephone or email communication feedback mountain.

laws and regulations. Actual absolute reduction up to 33.2%. Anti-corruption. Ecome supplier management platform Complying with the gudielines of
GHG and energy routine filing Supplier opnions survey ethics and honesty, anti-corruption.
Environmental education.
Supply chain management.

Annual customer satisfaction survey

Customer service. Quality certification
Product responsibility. Customer satisfaction 95.7%. Asia Cement sustainability zone,
Opions responses on Website and download
Circular economy. TAF Lab certification to ensure qaulity. LINE, FB and mining site public
Environmental education. test report Sustainable cycling1,2
Environmental protection Company website corporate website non-routinely announce
Implemented circular economy for
Customers Environmental protection Routine and non-routine visiting customers Green Cycling 1,2
laws and regulations. sustainability zone information.
alternative raw material and fuel.
/partners laws and regulations. Telephone or email communication and Green Cycling 3,5 Climate strategy. Activities and meetings for face-to-face 31,708 people received environmental Sustainable cycling 1
Occupational Safety and Asia Cement sustainability zone, LINE, NGO
feedback Sustainable mining mountain. education, face-to-face Green Cycling 1, 3,5
FB and mining site public website communication
Health. Routine project meetings Environmental education. communication.
Economic benefit. non-routinely announce information. Emission. Attending CDP Invested NT$92,390,000 to
Company website corporate sustainability zone
environmental protection.
CDP grade up to B.

Indirect economicimpact. Mining mountain visits and safety Implemented circular economy
Caring the rights of briefings 28 sessions with 1,116 for alternative raw material and fuel.
aboriginal people. Visiting local groups people. Raw material. Cement industry chain realized
Community/ Seminar
Sustainable mining Asia Cement service center Environmental protection industry-academic cooperation Green Cycling 1
local groups Asia Cement LINE, FB and mining Green Cycling 1 Academic Industry-academic cooperation
mountain. Non-routinely holding or attending laws and regulations. Cement 4.0 program industry-academic
Green Cycling 2

(including aboriginal Low carbon green site public website non-routinely Green Cycling 2
institute/industry Local community. project Green Cycling 3
local activities Green Cycling 3 cooperation. Green Cycling 4.4
people)/ general public manufacturing process. announce information. Green Cycling 4 Environmental education. Routine interchange Mining mountain feelingless explosion,
Environmental protection Eco-park and official website interactions Asia Cemenet service center served
Green Cycling 5
Green Cycling 5 Circular economy. Scholarships slope monitoring, vegetation restoration
laws and regulations. Company website corporate sustainability zone up to 1000 cases for residents. and biodiversity, eco-environmental
Circular economy. Eco-park visitors 30,593 people. education continuing to work with
academic sector.

EM CO IN N C

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The integration of physical and virtual creative communications with the stakeholders

Asia
Cement Asia EMPOWER
Service Cement
Center ECO PARK
Entity Directly authorizing the economic, social and
environ me ntal issues to the stakeholders.
Asia Asia Cement service platform: directly autho-
rizing the aboriginal and tribal employees to
Cement communicate with the community in-person.
FB

COLLABORATE
Asia Social Engagement Web
Cement media
LINE United project, partnership and or Nine col-
laboration platform. Asia Cement eco-environ-
mental education and the social care program
to aboriginal people, such as house repairing,
etc.
Corporate Web
Multiparties Eco-park Web
Forum Mine Public Infomation Web INVOLVE
Csr Web
Multi-parties forum, advisors, consen sus
camp, on-line in teraction. Asia Ceme nt
launched a three-party talk to discuss the
issues such as the safety of living, to collec-
tively resolve the concerned issues.

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 Sustainability 4.3 Management and Disclosure of Significant Issues
Confirming And Reviewing The Completeness Of Materiality Issues

4.60

Through the discussion and confirmation of CSR Com-

mittee, the significant issues of Asia Cement are defined as
the ones with the score of above 4.00 in terms of the level

Influence on stakeholder assessments & decisions

of concern by the stakeholders and the score of above 3.10
Environmental regulations
in terms of the impact analysis of sustainability. CSR sub- Circular economy
mits the evaluation process and the results of the significant
Environmental education Sustainable mining mountain and biodiversity
issues to the Chairman of the Committee for confirming that
Low carbon green manufacturing
all significant issues are covered. 4.30

Occupational safety and health

Employment relationship Emission
Water risk Local community Energy
Environmental regulations
Development Raw material
Sustainable mining mountain and biodiversity Relationship between
Attracting and retaining talents labor and employer
Low carbon green manufacturing Forced labor Human resource Risk and opportunity
Indirect economic management Economic performance
Economic Issues Emission
4.0
Diversity and Equal Opportunity impact
Freedom of Association Market image
Climate strategy Tax strategy
Energy
Human Rights Anti-corruption
Raw material Corporate Governance
(Board of Directors)
Water risk
Anti-competitive behavior
Climate strategy

Environmental education

Occupational safety and health

Employment relationship 3.70

Local community
3.10 Impact on the sustainability 3.70 4.30
Social Issues
Relationship between labor and employer

Attracting and retaining talents Materiality compliance

Human resource
The compliance of significant issues: Other than the violation of a portion of the Air Pollution and Waste Treatment
Development
Act (refer to page 47 for the details), all other significant issues are 100% in compliance with laws and regulations.

Circular economy
Internal And External Auditof The Report
Economic performance
Economic Issues Risk and opportunity management In order to have a better quality and more complete content of the report, the audit mechanism of Asia Cement
Indirect economic impact has scheduled to perform internal auditing to the report at least once per year. All departments are required to
cross-audit each other, external specialists are hired to perform an initial judgement of TCSA award for the further
improvement. The internal auditing of 2017 Report was performed on April 4, 2019 reading and information retrieval.

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Sustainability 4.4 The confirmation of significant issues and the management of reports
Through our identification as a Materiality, in addition to responding with the use of the regular communication platform, the management guidelines,implementation status, and
disclosure of the major topics, Asia Cement uses SDGs as the reporting structure and conducts the entire value chain. Analysis,set the full link function for easy .

ESG Materiality GRI Impact Site Reporting MA&Highlight Execution status

Environmental regulations GRI 307 Green3.5

all 30-31 47
Sustainable mining mountain Asia Cement
and biodiversity Customized/ DJSI A Green cycle 1 8-9 8-21
Low carbon green
manufacturing Asia Cement Customized Green3.2
process (cement 4.0) A 30-31 33-35

Emission GRI 305 all Green 3.3 Green 3.5 30-31 36-41,46
Environement Issues
Energy GRI 302 A J Green 3.3 30-31 36-41

Raw material GRI 301 all Green 3.3 30-31 36-37

Water risk GRI 303 H J Green 3.4 Sustainability 1.3 30-31 42-45,78

Climate strategy Roadmap of Sustainable

CDP/DJSI/GCCA A Goals in 2030 Sustainability 1.3 30-31,68-69 76-78
Environmental
education Asia Cement Customized A Green cycle 5 56-57 56-66
Occupational safety
and health GRI 403 all Sustainability 2.3 96-97 97-104
Employment
relationship GRI 401 all Sustainability 2.1 84-85 87-88
8-9,22-23,
Social Issues Local community GRI 413 all Sustainable green cycle 30-31,48-49,56-57
8-67
Relationship between
labor and employer GRI 402 all Sustainability 2.1 84-85 89-90
Attracting and retaining
talents
GRI 404 all Sustainability 2.1 84-85 86-91
Human resource
development
GRI 404 all Sustainability 2.2 84-85 92-94
Interests and rights of
aboriginal people GRI 411 A Green 1.5 Green cycle4 8-9,48-49 8-21,48-87

Circular economy GCCA A Green cycle 2 22-23 24-29

Economic performance GRI 201 all Sustainability 1.2 68-69 74-75

Economic Issues
Risk and opportunity
management
CDP/DJSI all Sustainability 1.3 68-69 76-79

Indirect economic
GRI 203
8-9,22-23 8-15,18-21,24-29,
impact A Green cycle 1~5
30-31,48-49,56-57 33-35,43-45,48-67

Note all all site A Asia cement H Asia Cement Hualien Plant S Yuan Long Stainless Steel N Nanhua Cement Y Ya Tung Ready-mixed Concrete
P Ya Li Precast F Fu Ming(Da) Transport J Chiahui Power
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 Sustainability 5.1
The disclosures and indexes of sustainable mining mountain
05 (self-requested by Asia Cement)
INITIATIVE OF Asia Cement specifically adopted 12 items of self-requested sustainable mining mountain KPIs and goals. Furthermore, it performed
the evaluation of three-disciplines (disciplines in the compliance to law, requirements from others and self) based on 12 indexes each

SUSTAINABLE year. 100% achievement of goals in 2019.

ACTION In 2019, 44% of the total hired Advanced Inward Stepping

employees in the plant and the Down Mining Method was
mining area were local aboriginal continuously used for the safe
residents. (28% mining in 2019.
in Hualien Plant and 50% in the
contractors.)
1 The yearly average value of the
monitored vibration speed in 2019
12 Advanced
Inward
2 was 0.0469cm/sec, far below the
self-requested value of
At least 40% of the Stepping 0.15cm/sec.
Value of
In 2019, the multiple native total hired workers Down Mining
in the plant and vibration
dominant tree species were Method.
mining area shall below
continuously planted to maintain be local
aboriginal
0.15cm/sec. 3
the diversity (46 frequently
planted tree species were 11 residents. Successive auto-monitoring
was continuously implemented
approved by the Water and Soil Continuing in 2019 and the report was
Conservation Plan), in order to Percentage of local auto-monitoring of disclosed on Asia Cement
ensure a net positive influence to Biodiversity aboriginal residents Mining
hired in the plant and mining mountain Hsinchenshen public website.
biodiversity. method explosion work.
mining area
Performing the analysis of
Percentage of 8 1 Mining area
10
Normalized Difference
Vegetation Index (NDVI) by
native forest
restored in the
explosion 4 In 2019, a total of 936 people
vibration
using Quick Bird satellite
images with the resolution of According to NDVI index
mining area
7 2 Demonstration and visited the mining site and 180
of greenery communication of people attended two sessions
1m. The study showed that restoration, native forest
18 years after the vegetation shall be restored at Item mining mountain
explosion work.
of aboriginal community
mining area safety briefings.
the mining area could reach least 99% in 20 years.
the standard of native forest. Greenery 6 3 Mining area
In 2019, the cumulated
restoration and water/soil
mining size
greenery area was 76.5%.
9 5 4
conservation
5
Water draining The flood detention capacity
Mining area Mining area was designed to take 1.4 times
The extraction area The extracted area environmental
system and
of the maximun frequency of
in 2019 was 23.5% is below 30% of the safety sand sediment
monitoring monitoring raindfall in 50 years.
of the total mining total mining area. basin in the
The system was continuously
area. 8 6 mining area.
operated in 2019.
At least 0.85
hectares of 7 Monitoring of
vegetation slope stability, The final residual wall and the slope underneath
greenery restored Monitoring of air displacement and were installed 5 sets of inclined tube and 4 sets of
A total of 4,229 incline.
native trees were per year. quality, noise, displacement meter. The 7-magnitude big Hualien
planted in 2019, 1.8 water quality. earthquake occurred in 2018 did not cause any
Self-disciplined displacement, incline, collapse or stone falling
hectares of greenery
vegetation area was incidents. The continuous monitoring in 2019
The mining area was installed 2 noise and showed that it was still very stable.
Requested by Law restored.
vibration measurement stations, 2
meteorology and air measurement
stations and 3 water quality measurement
stations. An institute certified by EPA
continuously measured in 2019
and showed that the results were fully in
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128 C
compliance with the regulations.
Sustainability 5.2 Cement Sustainability Initiative (CSI) Index
Sustainability 5.3 Guideline of ISO 26000 Enterprise Social Responsibility
CSI Index
Item Unit Hsinchu Plant Hualien Plant Hsinchu Plant Hualien Plant Hsinchu Plant Hualien Plant Hsinchu Plant Hualien Plant

GHG emission [Ton CO2e/Year] 55,364 3,362,841 8,398 3,025,920 8,669 3,099,365 8,669 3,099,365
% of raw material calcining in the
[%] 47 59 0 57 0 57 0 57
total emission
% of coal burning in the total [%] 33 36 0 37 0 38 0 38
emission
% of purchased power in the total 20 100 5.4 100 5.3
[%] 5.0 100 5.5
emission
Total produced clinker [Ton/Year] 49,957 3,782,153 0 3,335,326 0 3,316,545 0 3,385,859
Total gypsum used [Ton/Year] 17,724 175,446 15,801 155,757 16,887 160,540 13,391 152,770
Volume of mineral added into
[Ton/Year] 5,806 119,776 3,590 93,287 2,263 96,473 1,166 105,279
cement grinding
Annual use of cement material [Ton/Year] 73,487 4,077,375 19,391 3,584,370 19,150 3,573,558 14,557 3,643,908
Unit volume of GHG emission [KG CO2e/Ton Cement] 751 825 0.4 844 0.5 867 0.6 851

Particle pollutant discharge [Ton/Year] 7 1,170 6 1,193 13 1,136 17 1,351

Sulfur oxides emission [Ton/Year]
4 607 0 542 0 559 0 541
Nitrogen oxides emission [Ton/Year]
49 5,023 0 4,561 0 3,921 0 4,894

Unit particle pollutant discharge [KG CO2e/Ton Cement] 0.03 0.29 0 0.33 0.70 0.32 1.19 0.37
Unit sulfur oxides emission [KG CO2e/Ton Cement] 0.02 0.15 0 0.15 0 0.16 0 0.15

Unit nitrogen oxides emission [KG CO2e/Ton Cement] 0.21 1.23 0 1.27 0 1.10 0 1.34

ISO 26000 Chapters and Paragraphes of Asia Cement CSR

Sustainable related topics of asia cement Report and the Descriptions

Cognition and understanding of corporate social
responsibility Report - Words from the Chairman

Identify and Engage Stakeholders Report – Sustainabililty 4.1 Management of sustainability topics

Organizational governance
Report – Sustainability 1.1 Corporate governance
Report - Sustainability 2 A happy workplace
Human rights

Labor practice

Environment Report - Green 1 Sustainable mining mountain

Fair operating practices Reprot - Green 3 Low carbon green smart manufacturing

Community involvement and development Report - Sustainability 1 Corporate governance

Related action plan Report - Green 1 Sustainable mining mountain

Communicate social responsibility Report - Green 4 Local social care

Review and improve corporate social responsibility Report - Green 5 Sustainable environmental education

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Appendix

01 Index of content, GRI Standards: General | 130

02 Index of content, GRI Standards: Special Issue | 131

03 AA1000 External Assurance Statement | 133
 Appendix 1 Index of content, GRI Standards: General
Externally
Externally General Disclosures GRI 102 : 2016 Page / note verified
General Disclosures GRI 102 : 2016 Page / note verified Ref annual
Evaluating the highest governance body’s performance report
Name of the organization Identifying and managing economic, environmental,
and social impacts
Activities, brands, products, and services
Effectiveness of risk management processes
Location of headquarters
Review of economic, environmental, and social topics
Location of operations
Highest governance body’s role in sustainability reporting
Ownership and legal form
Communicating critical concerns
Markets served
Organizational Nature and total number of critical concerns
profile Scale of the organization
Ref annual
Remuneration policies report
Information on employees and other workers
Process for determining remuneration
Supply chain
Stakeholders’ involvement in remuneration
Chiahui Power
Significant changes to the organization and its supply will expand the
second phase of Annual total compensation ratio
chain the plantchain

Precautionary Principle or approach Percentage increase in annual total compensation ratio

External initiatives List of stakeholder groups

Membership of associations Collective bargaining agreements

Stakeholder
Statement from senior decision-makerchain Identifying and selecting stakeholders
engagement
Strategy Approach to stakeholder engagement
Key impacts, risks, and opportunities
Key topics and concerns raised
Values, principles, standards, and norms of behavior
Ethics and Entities included in the consolidated financial statements
integrity
Mechanisms for advice and concerns about ethics
Defining report content and topic Boundaries
Governance structure
List of material topics
Delegating authority
Restatements of information none
Executive-level responsibility for economic,
environmental, and social topics Changes in reporting none
Consulting stakeholders on economic, environmental,
and social topics Reporting period
Composition of the highest governance body and its Ref annual Reporting
Governance report
committees practice Date of most recent report
Chair of the highest governance body
Reporting cycle
Nominating and selecting the highest governance body
Contact point for questions regarding the report
Conflicts of interest Claims of reporting in accordance with the GRI Standards
Role of highest governance body in setting purpose, GRI content index
values, and strategy
Ref annual GRI content index
Collective knowledge of highest governance body report

External assurance

130 A
Appendix 2 Index of content, GRI Standards: Special Issue Standards

Environmental GRI 300 : 2016

Material Topics Management Approach and Disclosures Page note

Materials Management Approach

Materials used by weight or volume

Recycled input materials used

Economic GRI 200 2016 Reclaimed products and their packaging materials

Material Topics Management Approach and Disclosures Page note Energy Management Approach

Economic Performance Management Approach Energy consumption within the organization

Direct economic value generated and distributed Energy consumption outside of the organization
Economic Energy
Performance Financial implications and other risks and opportunities GRI 302:2016
Energy intensity
GRI 201:2016 due to climate change
Defined benefit plan obligations and other retirement plans Reduction of energy consumption

Financial assistance received from government Reductions in energy requirements of products and services

Water Management Approach

Indirect Economic Impacts Management Approach

Indirect Water withdrawal by source

Water
Economic Infrastructure investments and services supported GRI 303:2016
Impacts Water sources significantly affected by withdrawal of water
GRI 203:2016
Significant indirect economic impacts Water recycled and reused

Emissions Management Approach

Direct (Scope 1) GHG emissions

Energy indirect (Scope 2) GHG emissions

Emissions Other indirect (Scope 3) GHG emissions

GRI 305:2016
GHG emissions intensity

Reduction of GHG emissions

Emissions of ozone-depleting substances (ODS)

Nitrogen oxides (NOx), sulfur oxides (SOx), and

other significant air emissions

Environmental Environmental Compliance Management Approach

Compliance
Non-compliance with environmental laws and
GRI 307:2016
regulations

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 Social GRI 400 2016

Material Topics Management Approach and Disclosures Page note

Employment Performance Management Approach

New employee hires and employee turnover

Employment Social GRI 400 2016
GRI 401:2016
Benefits provided to full-time employees that are not provided to
temporary or part-time employees Training and Education Management Approach

Parental leave Average hours of training per year per employee

Training and
According to Education
Labor/Management Relations Performance Management Approach Programs for upgrading employee skills and transition assistance
Labor/Management regulations GRI 404:2016 programs
Relations
GRI 402:2016 According to Percentage of employees receiving regular performance and career
Minimum notice periods regarding operational changes regulations development reviews

Occupational Health and Safety Management Approach

Rights of Indigenous Rights of Indigenous Peoples Management Approach
Occupational health and safety management system Peoples
GRI 411:2016
Incidents of violations involving rights of indigenous peoples none
Hazard identification, risk assessment, and incident investigation

Occupational health services

Local Communities Management Approach
Worker participation, consultation, and communication on
occupational health and safety
Local Communities
LOccupational Health GRI 413:2016
Worker training on occupational health and safety NEW
and Safety Operations with local community engagement, impact assessments,
GRI 403:2018 and development programs
Promotion of worker health NEW

Prevention and mitigation of occupational health and safety

impacts directly linked by business relationships NEW Operations with significant actual and potential negative impacts on
local communities
Workers covered by an occupational health and safety
management system NEW

Work-related injuries NEW

Work-related ill health NEW

132 A
Appendix 3 AA1000 External Assurance Statement

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