Stakeholder Engagement

Stakeholder Engagement

CSC values the rights and opinions of its stakeholders and sets proper communication channels to promptly understand and address stakeholder expectations and demands. To appropriately respond to the relevant concerned issues of stakeholders, each department of the company divides the work to take responsibility for stakeholder communication. CSC's "Corporate Governance and Sustainability Committee" reported the results of annual stakeholder engagement to the Board of Directors in August 2024.
CSC directly communicates with its stakeholders via a variety of channels, such as labor-management meetings, investor conferences, collaborative work safety meeting, production and sales meetings, and visiting each other, in order to collect suggestions and consider incorporating them into relevant goals. Questionnaire surveys are conducted anonymously to protect stakeholders' privacy and reflect their expectations of CSC in the most realistic manner.

Stakeholder Identification

Referencing the experiences of its departments and peers in the steel industry, major stakeholders are identified according to their attributes, such as dependency, responsibility, influence, diverse perspectives, and tension, as stipulated in the AA1000 Stakeholder Engagement Standard (AA1000SES). The major stakeholders identified by Sustainability Reporting Group include: customers and traders, central and local governments, employees and collaborating partners, suppliers and contractors, shareholders, society (including communities and local groups, media journalists, NGOs/NPOs), steel industry peers, and academic researchers.

CSC StakeholderGroup or personal which influences CSC or is affected by CSC.

Communication Channels and Effectiveness

CSC values the rights and opinions of its stakeholders and sets public, direct communication channels by providing related information of sustainable development in CSC, timely understanding and replying the concerned topics from stakeholders, and continually viewing and improving the achievement of Sustainable Development.

Employees

Concerned Topics

  • Employee welfare and salary, Labor / management relations, Occupational safety and health.

Meaning for CSC

  • Employees are an important asset of the company and a partner for growth. Besides working together to create a safe work environment and ensure the employee's human rights, CSC also enhances the employee's skills through career development, education, training, and cultivate talent capital to strengthen the company's competitiveness.

Communication Channels

  • Board representation by Labor Union of CSC; collective bargaining.
  • Labor-management meeting (every month), regular departmental meeting (union representative present), Safety and Health Committee meeting (every 2 months).
  • Seminar between the managerial departments, directors and supervisors of the union, and the shareholding trust committee (every 6 months).

Engagement Highlights in 2024

  • Salary raises for ten consecutive years; employees' salaries were raised 4%(including monthly meal allowance increased from NT$2,400 to NT$3,000) on average in 2024.

Contractors

Meaning for CSC

  • Contractors represent an indispensable part in CSC’s supply chain, and are considered as comrades who thrive with CSC. Therefore, CSC's management and care towards contractors are on the same level as its employees, and CSC collaborates with contractors to improve their working conditions.

Communication Channels

  • Contractor job safety meeting, Contractor environment, safety and health meeting, Contractor Safety and Health Committee meeting (monthly), Joint-work negotiation meeting, outsourcing management meeting (annually) and Contractor training (irregular).

Issues of Concern

  • Provide long-term and stable job sources, reasonable salary levels, friendly working environment, and prevent and reduce work safety accidents.

CSC response

  • Provide contractor personnel with labor safety training and basic skills certification, and use on-site inspection data to guide contractor personnel to develop a good labor safety culture.
  • Promote inherently safe design to reduce equipment risks and reduce the occurrence of labor safety hazards.

Customers and Traders

Concerned Topics

  • Operational financial performance, Product quality and innovation, Customer services management.

Meaning for CSC

  • Sales to the customers are the main source of revenue for CSC, and "Pursuing customer satisfaction, implementing high quality service and protecting customer rights" is CSC's highest principle when facing our customers and traders. CSC also exerts its overall strength to lead downstream customers in expanding product applications, promoting close communication between customers, and maintaining integrity of the industry.

Communication Channels

  • Production-Sales meetings and records (quarterly).
  • Customer Satisfaction survey and Focus Group operation (annually).
  • Customer briefings, R&D alliances, steel-related professional training, technical seminars, high-level business management seminars, market survey visits, and customer interview sales calls (iIrregular).

Engagement Highlights in 2024

  • To strengthen the bond between customers, sales visits amounted to 720 person-times in 2024 approximately.
  • The overall satisfaction score of the customer satisfaction survey was “good”.

Governmental Authorities

Concerned Topics

  • Operational financial performance, Employee welfare and salary, Water management.

Meaning for CSC

  • CSC operates in accordance with the policies and regulations stipulated by the governmental authorities, adheres to the environmental protection concept of circular economy, and fulfills corporate social responsibilities.

Communication Channels

  • Actively visit the competent authority and elected representatives to communicate reasonable regulations and policies.
  • Through research discussions, forums, public hearings, training courses, and informal exchanges regarding a variety of policies and regulations (Irregular).
  • Participate in symposiums, seminars, and assessments held by competent authorities (Irregular).

Engagement Highlights in 2024

  • In April and November of the year 2024, CSC attended the "Review Meeting on Air Pollution Prevention and Improvement Measures for State-Owned Enterprises" convened by the National Agency.

Suppliers

Concerned Topics

  • Occupational safety and health, Labor / management relations, Workplace Diversity and Equality.

Meaning for CSC

  • Suppliers are an integral part of CSC's normal operations. They must comply with CSC's requirements and abide by relevant codes of conduct.

Communication Channels

  • Participate in workshops (averages 20 per month).
  • Communication meetings, pricing meetings (quarterly).
  • Communication meetings for collaborative works of transportation (monthly).

Engagement Highlights in 2023

  • Completed safety and health training and promotion for contractors in relevant services (e.g., cleaning, greenery, disinfection, and official laundry) in 2023, including traffic safety training, safety and health training, and joint-work negotiation meetings.
  • Organized 10 meetings on joint transport operations in 2023 to discuss various issues, such as business operations, operation safety, and traffic safety.

Shareholders/Investors

Meaning for CSC

  • Shareholders provide the capital necessary for the long-term development of the company, which is an important foundation for CSC to move towards sustainable operation, and look after the company's strategy for sustainable growth and future development. CSC should develop steadily and make profits for shareholders.

Communication Channels

  • Toll-free shareholder service hotline (0800-746-006) and email (f1000@mail.csc.com.tw).
  • Visits from shareholders by appointment, conference calls, video conferences, reception of domestic and foreign institutional shareholders, and participation in domestic and international investor conferences held by brokers (irregular).
  • Publish digital and hard copy of annual report (every year).
  • CSC holds shareholders meeting in the second quarter annually and the resolutions are voted per item of the agenda. E-ballots is adopted with full shareholder participation in the voting process. The results are announced on MOPs and corporate website.

Issues of Concern

  • Climate change response, occupational safety and health, corporate governance, business and financial performance and sustainable value creation for steel products.

CSC response

  • Receive domestic and international institutional shareholders and held conference calls for more than 83 times.
  • Participated in 4 domestic and foreign investor conferences.
  • CSC engaged in exchanges with domestic and foreign investors via video conferences or emails for 16 times in 2024 due to their concern about the disclosure of actions in response to climate change and risk assessments. Related information was reported to the Board of Directors.

Steel Industry Peers

Concerned Topics

  • Employee welfare and salary, Operational financial performance, Information/Cyber Security, Labor / management relations.

Meaning for CSC

  • CSC develops a close rapport with the peer companies and actively participates in industry organizations and associations. Through communication and cooperation, CSC comprehensively grasps the dynamics of the domestic and international steel industry, technological advancements, as well as the latest information on policies. This serves as a reference for business expansion and strategic partnerships, enabling close alignment with the international market.

Communication Channels

  • Participate in meetings held by the Taiwan Steel & Iron Industries Association, worldsteel, South East Asia Iron and Steel Institute (SEAISI) (irregular).
  • Bilateral and multilateral communication, official visits and meetings (irregular).

Engagement Highlights in 2023

  • Participated in 2023 SEAISI Steel Mega Event & Expo and 2023 ASEAN Raw Materials & Scrap Focus e-Event (virtual meeting).
  • Participated in affairs of the Industrial Safety and Environmental Protection Committee of the Taiwan Steel & Iron Industries Association 3 times. Participated in 7 meetings of the steel slag recycling and reuse promotion team of the association.
  • Engaged in exchanges on environmental protection issues with YFY Packaging Inc., Chung Hwa Pulp Jiutang Plant, and Chung Hwa Pulp ESG Office on March 29, 2022.

SocietyNote

Concerned Topics

  • Air Pollutants Management, Climate Change, Energy Management.

Meaning for CSC

  • Through communications with communities and local groups, journalists, non-governmental organizations and NGOs/NPOs, CSC understands the society's expectations about its corporate social responsibility. By paying attention to the local community and a sense of responsibility, CSC dedicates itself to social participation in diverse manners.

Communication Channels

  • Visits and negotiations were conducted by Public Affairs Department, CSC Group Education Foundation, Labor Union of CSC, and employee clubs (irregular).
  • Press releases and spokesperson interviews (Irregular).
  • Participated in seminars and meetings held by the professional association, academic institutes, and unions (regular and irregular).

Community Engagement Framework

  • Provide balanced and objective information to help local communities to know about CSC.
  • Collect opinions from the local community about CSC.
  • Implement a stakeholder engagement plan to confirm their opinions on key issues.
  • Communicate and interact with local communities to pursue cooperation solutions.
  • Give local communities the authority to express their opinions and incorporate community views into company decision-making.

Feedback via: A300@mail.csc.com.tw

Engagement Highlights in 2023

  • Participated in the Taiwan Alliance for Sustainable Supply's TASS2023 Sustainable Taiwan Expo, and shared CSC's carbon reduction path planning.
  • CSC co-organized the "Green Supply Chain International Workshop" organized by the ICLEI Kaohsiung Capacity Center (KCC), and led students on a visit to see circular economy and green product cases.
  • Invited by the Taiwan Association for Net Zero Emission to attend the “2023 Sixth Global Corporate Sustainability Forum (GCSF) - The Second Forum on Carbon Credit, Carbon Tariffs, and Carbon Trading" to share the impact of carbon fees and carbon border taxes on the steel industry.
  • Participated in the meeting of National Toxic Chemicals Regional Allied Defense South District Team.
  • Joined Chinese National Federation of Industries, Taiwan Steel & Iron Industries Association, and Taiwan Association of Soil and Groundwater Environmental Protection.
  • More than 400 visits and consultations have been conducted through Public Affairs Department.

  • Operations and Projects with community consultation

    Category 2023
    Total number of productive operations 0
    Productive operations that have required community consultations 0
    Productive projects in process 0
    Productive projects in process with community consultations 0
Note：Communities and local groups, journalists, NGOs/NPOs are included.

Academic Researchers

Concerned Topics

  • Energy Management, Product quality and innovation, Air Pollutants Management, Waste Management.

Meaning for CSC

  • CSC is striving to become a steel mill that provides premium products and services. Collaboration with academic personnel is an indispensable external resource. It not only facilitates CSC to become a premium steel company, but also improves CSC social image.

Communication Channels

  • Progress review of Engineering Research Center and Industry and Academia Alliance (every 2 months).
  • Progress review of Joint Research Laboratory (mid-term report of outsourced researches) and research guidance (every 6 months).
  • Proposal and final reports of ERC, JRL, and outsourced researches (every year).
  • Keynote speeches (irregular).

Engagement Highlights in 2023

  • Invite domestic and overseas experts and scholars to give speeches (non-online exchanges) for a total of 6 person-days.
  • 155 research projects outsourced to schools and research facilities.
  • Invited local and international experts and scholars to guide 5 research project.