Chunghwa Picture Tubes Ltd. Corporate Social Responsibility

Chunghwa Picture Tubes Ltd. Corporate Social Responsibility
Statement for 2008
1
I.
II.
III.
IV.
V.
VI.
VII.
Preface ....................................................................................................................... 5
Scope ......................................................................................................................... 5
Reference used for the drafting of general provisions............................................... 5
Contact information................................................................................................... 5
Words of the chairman............................................................................................... 6
Profile of Chunghwa Picture Tubes Ltd. ................................................................... 7
CS (Customer Satisfaction) ......................................................................................11
7.4.1 Corporate Procedure Optimization -PLM ....................................................18
7.4.2 Corporate Procedure Optimization -APS .....................................................19
7.4.3 Introduction of ERP system in the future.....................................................20
VIII. ES (Employee Satisfaction)..................................................................................... 21
Chunghwa Picture Tubes and our employees ................................................................... 21
8.1
Employee appointment .................................................................................22
8.2
Wages and benefits .......................................................................................22
8.3
Communication with employees ..................................................................23
8.4
Employee training .................................................................................................24
8.5
Employee complaint handling system ..................................................................25
8.6
Retaining talents and employee healthcare...........................................................25
IX. SS (Society Satisfaction) ......................................................................................... 29
Chunghwa Picture Tubes and society ............................................................................... 29
9.1
Industry-Government-Academia collaboration.....................................................30
9.2
CPT and charity.....................................................................................................32
9.3
Community participation.......................................................................................33
9.4
Anti-corruption ......................................................................................................36
X. GS (Global Satisfaction).......................................................................................... 37
Environment Safety & Health Management (E.S.H.M.) .................................................. 37
10.1 Environment management system ........................................................................38
10.1.1
Environment safety & health policies ......................................................38
10.1.2
Environment safety & health organization...............................................38
10.1.3
Environment safety & health management system certification..............38
10.1.4
Environment safety & health education/training......................................39
10.1.5
Environment safety & health awards and accomplishments....................41
10.2 Environmental products ........................................................................................42
10.2.1. Chunghwa Picture Tubes Environmental Product Policy ........................42
10.2.2
RoHS: .......................................................................................................44
10.2.3
WEEE directives.......................................................................................45
10.2.4
EuP directives: ..........................................................................................45
10.2.5
EPD (Type III Environmental Product Declaration): ..............................46
10.2.6
Environmental design ...............................................................................48
10.3 Environmental protection ......................................................................................51
2
10.3.1
Power management...................................................................................51
10.2.2
Water resource management ....................................................................52
10.2.3
Overview of energy conservation results achieved by CPT ....................53
10.2.4
Pollution prevention..................................................................................53
10.4 Environment protection performance ...................................................................55
10.5 Greenhouse gases emission...................................................................................56
10.6 Environmental issues of concern ...............................................................................57
Table I. Company overview.................................................................................................7
Table II. Members of the board of directors and their positions........................................ 11
Table III. Balance Sheet .....................................................................................................15
Table IV. Income Statement ...............................................................................................15
Table V. Stakeholders ........................................................................................................16
Table VI. Methods of communication ...............................................................................23
Table VII. Budget for community participation.................................................................35
Table VIII. History of CPT’s system accreditations ..........................................................38
Table IX. Employee training ..............................................................................................39
Table X. List of environment, safety and health awards conferred in chronological order41
Table XII. History of CPT’s annual CO2e..........................................................................56
Fig 1. Chunghwa Picture Tubes＇ global deployment................................................................ 7
Fig 2. Product development history ............................................................................................. 8
Fig 3. Market share....................................................................................................................... 8
Fig 4. Products.............................................................................................................................. 9
Fig 5. Company organization ..................................................................................................... 13
Fig 6. Scope of relevance for CPT＇s PLM.............................................................................. 18
Fig 7. CPT production operation IT system architecture........................................................... 19
Fig 8. CPT ERP system architecture.......................................................................................... 20
Fig 9. Forecast of post-EPP introduction benefits ..................................................................... 20
Fig 10. Internal communication platform................................................................................... 24
Fig 11. Training blueprint........................................................................................................... 25
Fig 12. Employee recreation space............................................................................................. 27
Fig 13. Weight loss club............................................................................................................. 27
Fig 14. Quit smoking campaign ................................................................................................. 28
Fig 15. CPT building .................................................................................................................. 32
Fig 16. The Paper Windmill event ............................................................................................. 32
Fig 17. Sponsoring communities................................................................................................ 33
Fig 18. CPT employees making generous donations to victims of the Sichuan earthquake..... 34
3
Fig 19. Participation in the road cleaning project in Taoyuan County ...................................... 34
Fig 20. Environment Safety & Health Management System Certificate................................... 39
Fig 21. Environment safety & health training and drill for employees ..................................... 39
Fig 22. Section on environment safety & health on CPT＇s official website .......................... 40
Fig 22. CPT＇s Environmental Policy....................................................................................... 42
Fig 23. IECQ QC08000 Certificate............................................................................................ 47
Fig 24. Environmental packaging design ................................................................................... 48
Fig 25. Backlight power saving design ...................................................................................... 49
Fig 26. 31.5" Modular Type LGP for LED TV ......................................................................... 50
Fig 27. History of CPT＇s annual power consumption............................................................. 52
Fig 28. History of CPT＇s annual water consumption.............................................................. 52
Fig 29. Wastewater treatment facility ........................................................................................ 53
Fig 30. ROR water recycling system ......................................................................................... 54
Fig 31. Heat retaining emission treatment facility ..................................................................... 54
Fig 32. Heat retaining emission treatment facility ..................................................................... 56
Fig 33. Greenhouse gas inspection statement ............................................................................ 56
4
I.
Preface
This publication marks Chunghwa Picture Tube’s first ever corporate social responsibility
statement. In the past, we have embraced a spirit that yearns to learn as we engage in an assortment
of corporate social responsibility operations. We shall keep on learning for the time to come,
because Chunghwa Picture Tubes realizes that the true path for enterprises to co-exist with society
is for enterprises to emphasize their corporate social responsibilities.
II. Scope
The contents of this statement covers the results achieved by Chunghwa Picture Tubes’ corporate
social responsibility undertakings in Taiwan for the year 2008. The contents serve as an adequate
presentation of Chunghwa Picture Tubes’ achievements in various fields such as economy, society,
employee and environment safety & health.
III. Reference used for the drafting of general provisions
Chunghwa Picture Tubes’ Corporate Social Responsibility Statement for 2008 has been drafted
based on the Global Reporting Initiative’s Sustainability Reporting Guidelines (abbreviated as GRI
G3) published in 2006 to disclose the company’s primary sustainability objectives and measures.
IV. Contact information
You are more than welcome to contact us should you have any suggestions or doubts
Chunghwa Picture Tubes Ltd.
Safety and Health General Division, Taoyuan Safety and Health Department
No. 1127, Heping Road, Tanan Neighborhood, Bade City, Taoyuan County
Tel: 03-3675151 ext. 3620
Fax: 03-3773129
e-mail: [email protected]
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V. Words of the chairman
The greatest achievement that one can hope to achieve is to use the talents and skills granted to him
by God and make the best use of it to contribute to society and benefit other citizens. In the year of
2008, CPT has produced close to 20 million CRT units, over 22 million large sized display panels
and more than 50 million display panels of medium-small sizes to contribute to the fields of
information, communication and entertainment. Such is the accomplishment that CPT has achieved
by gathering the collective wisdom and strength of its employees. At the same time, out of the
company’s social citizenship obligations, CPT has endeavored to fulfill its corporate social
responsibilities in various domains, such as championing the cause for energy conservation and
carbon reduction; answering to Paper Windmill Theatre’s call to cultivate and inspire children’s arts
and collaborating with social charity organizations time and again to assist the disadvantaged
minorities. With regards to corporate operation and products, CPT has aggressively introduced
measures that would mitigate the impact to our environment and integrated environmental
technologies in its R&D, material, production, end-products, transportation and so forth. Although
CPT is not a pioneer in the area of corporate social responsibilities, the issue and responsibility that
we are really concerned about is being constantly involved. While the future may be full of
hardship and challenges, CPT shall never yield. May CPT and all its employees work hand in hand
to overcome all adversities.
6
VI. Profile of Chunghwa Picture Tubes Ltd.
Chunghwa Picture Tubes Ltd. (henceforth abbreviated as CPT) is a professional display device
manufacturer in Taiwan that prides itself with outstanding technical capabilities as its primary
competitive edge. CPT is primarily involved in the R&D, design, manufacturing and distribution of
large, medium and small sized flat display panels and color/mono cathode ray tubes (CRT).
Date of initiation May 4, 1971
Paid up capital
94,809,598,300
Stated capital
125,000,000,000
No. of employees
Approximately 22,000
worldwide
Chairman
Mr. Lin Wei-Shan
Table I. Company overview
CPT’s primary production plants include the following: Chunghwa Picture Tubes Ltd. (Taoyuan
Plant), Chunghwa Picture Tubes Ltd. (TFT Lungtan Plant), Chunghwa Picture Tubes Ltd. (CF
Yangmei Plant), Chunghwa Picture Tubes Ltd. (Hukou Plant), Chunghwa Picture Tubes (Malaysia)
Sdn. Bhd., CPTF Optronics Co., Ltd., Chunghwa Picture Tubes (Wujiang) Ltd., CPT Display
Technology (Shenzheng) Ltd. CPT TPV Optical (Fujian) Co., Ltd. and CPT Display Technology
(Fujian) Ltd.
Fig 1. Chunghwa Picture Tubes’ global deployment
The fact that distinguishes CPT from other LCD manufacturer is that CPT started out in 1971 as a
manufacturer of mono CRTs. In 1980, CPT commenced the production of color CRTs and became
the first company in Taiwan to produce 10” STN-LCD in 1996. In 1998, CPT manufactured
Taiwan’s first 15” TFT-LCD and 46” DPD in year 2000. Presently, CPT has secured approximately
23% of the market share with its CRT products, ranking third in the world and first in Taiwan. With
7
regards to TFT-LCD products, CPT has 10% market share, making the company fifth in the world
and third in Taiwan .
Fig 2. Product development history
CRT
TFT
台 灣
1st
3rd
全 球
3rd
5th
全球市佔率
23.0%
10.0%
Fig 3. Market share
8
CPT is not only involved in the production of key TFT-LCD components such as the color film (CF)
and cold cathode florescent lamps (CCFL) but has also been aggressively promoting resource
integration between the upstream and downstream vendors in order to create new opportunities for
the optronics sector. CPT has secured shares of manufacturers of driver IC (Sitronix Technology
Co., Ltd.), CCFL (Sintronic Technology), small & medium TFT modules (Giantplus Technology
Co. Ltd.), downstream vendor (Xiamen Overseas Chinese Electronic Co. Ltd.) along with the
acquisition of CF manufacturer (Sintek Photronic Corp.). At the same time, the backlight module
manufacturing plant initiated by CPT’s joint investment with Forward Electronics is also officially
operational. With the advantages of internal production, CPT strives to improve its cost
competitiveness. The completion of these strategic deployments also reflected CPT’s initial success
in integrating key parts/components and extending its value chain. In addition to ensuring steady
supply of key parts and components, these deployments also allow CPT to effectively oversee its
resources, satisfy customer needs and control the channels of product distribution to further boost
the company’s capacity to generate more profit in the near future.
LCD Monitor--
LCD TV–
15”/17”/20”/22W/26W
20”/26”/32”/37”/47”
中小尺寸
Monitor–
1.5”、1.8”、2”、2.2”、2.4”
Color Picture Tube
Notebook –
12.1”/14.1”/15
單色映像管
2.8”、3.5”、4”、5＂、5.7”、
7”、8”、9”、10.2＂
Fig 4. Products
Corporate governance
Operations of CPT’s board of directors
The board of directors at CPT is comprised of nine directors, three of which have been designated
as independent directors. Members of the board are individuals with professional backgrounds in
relevant fields of expertise such as university professors, attorneys and so forth. In addition, five
seats for supervisors have also been reserved on the board. All board supervisors have been elected
during the shareholders general meeting and they are primarily responsible for maximizing profits
9
for all shareholders. The operation of the board is compliant with the Regulations Governing
Procedure for Board of Directors Meetings of Public Companies. The board convenes at least one
meeting every quarter. In the 2008 board meeting, the attendance rates for directors and supervisors
were 98.14% and 88.89% respectively. The directors and supervisors have discussed motions
during the meetings with much enthusiasm and have made the effort to follow up routinely on
resolutions. When it comes to motions that might lead to potential conflict of interests, members of
the board have demonstrated high moral conduct to avoid such motions.
Directors and Officers (D&O) liability insurance
CPT Corporate Charter Provisions Article XV, Clause II states that all directors and supervisors
shall be held liable for their actions during their tenure and are therefore required to be covered for
the liability insurance. CPT has been purchasing the D&O liability insurance for its directors and
supervisors in compliance to the aforementioned clause in the Corporate Charter Provisions since
2006.
External contact and information disclosure
CPT has adopted a spokesperson system, set up its bilingual website in both English and Chinese
along with periodically disclosing information on the Company’s financial status and corporate
governance. Not only that, CPT has made it a point to convene investors conference routinely and
host relevant information on the corporate website for references. The Company has also appointed
designated personnel with mailboxes to deal with shareholder suggestions and complaints. Key
information such as company operations, financial standings and other important information are
duly disclosed through the Market Observation Post System as required by pertinent regulations.
Internal Control
In order to facilitate sound corporate operation and management, CPT has established its internal
control system based on the Criteria for Establishment of Internal Control Systems by Public
Companies and the said system has been approved by the Board. The purpose of the internal
control system is to ascertain sound corporate management for CPT by reasonably ensuring the
results and effectiveness of corporate operations, the reliability of its financial statements and the
Company’s compliance to relevant regulations. CPT has taken its overall operations into account in
the design and implementation of its internal control system (which is constantly under review) in
order to ensure relevance due to changes in the interior and exterior environments. This would in
turn guarantee the system’s design and implementation remain effective and valid.
Audit Committee
The board of directors has initiated an audit committee that answers directly to the board. The
committee is primarily responsible for auditing CPT’s management systems and various operatiing
procedures.
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VII.CS (Customer Satisfaction)
7.1 Corporate governance
CPT strives to attain perfection in corporate management through the operation of its board of
directors, which features three independent directors and five supervisors.
The Company has appointed designated personnel with mailboxes to deal with shareholder
suggestions and complaints.
(2)
The Company has properly controlled the role of dominant shareholders and the shareholders
behind them. The Company also has access to their status of shareholding at any time.
(3)
The Company has instituted the proper procedure to handle financial and business
transactions with affiliates whereby authority and responsibility are clear cut. To ensure this,
CPT has designated three independent directors on the Board.
(2)
The Board regularly accesses the independence and impartiality of its external auditors, and
replaces such auditors after a few years of service to the Company to ensure their
independence and impartiality. In addition, the Company has also designated appropriate
channels and departments, such as its Spokesperson System, its official website, Legal, SEC
Compliance Department, Investor Relations and so forth to communicate with stakeholders.
The Company makes it a point to disclose information such as its financial status and
corporate governance through its website.
(2)
The Company has appointed designated personnel to maintain its website in both English and
Chinese and to handle information collection and disclosure. In addition, the Company has
designated spokespersons to set up periodic investor conferences. All relevant references and
information are available on CPT’s website.
Table II. Members of the board of directors and their positions
Name
Title
Positions at CPT and other companies served concurrently
Lin Wei-Shan Chairman
Tatung Co. Chairman and President
Tatung Consumer Products (Taiwan)
Co., Ltd. Director
Forward
Electronics
Co., Ltd.
Chairman
Taiwan Telecommunication Industry
Co., Ltd. Chairman
Tatung Otis Elevator Co., Ltd.
Chairman
Green Energy Co., Ltd. Chairman
CPT Ltd. Chairman and CEO
CPT (Bermuda) Ltd. Chairman
Bensaline Investment Ltd Chairman
Banglor Investment Ltd Chairman
11
Dalemont Investment Ltd Chairman
Daliant Investment Ltd Chairman
Shang Chih Semiconductor Co., Ltd.
Chairman
Tatung InfoComm Co., Ltd. Director
Tatung Fine Chemicals Co. Chairman
Shang Chih Asset Development Ltd.
Chairman
Toes Opto-Mechatronics Co Chairman
Tatung Vietnam Co., Ltd. Chairman
CPT (Labuan) Ltd. Chairman
Tatung-Fanuc Robotics Co., Ltd. Chairman
Grand Cathay International Asset
Management Co., Ltd. Chairman
Name
Title
Tang
Yuan-Sheng
Director
Hsu
Chao-Yun
Director
Lin
Kuo
Director
Wen-Yan
Lin
Hong-Ming
Chiu
Chuang-Yi
Director
Director
Yuen
Director
Chien-Chung
Shih
Kuo-Ching
Director
Chao
Chien-He
Director
Wang
Lung-Chieh
Ou Tien-Fa
Chen
Hsu-Fen
Supervisor
Supervisor
Supervisor
Positions at CPT and other companies served concurrently
Tatung Co. Assistant Vice President
Tatung Co., of Japan Inc. Director
Green Energy Co., Ltd. Director
Tatung UK Ltd. Director
Tatung InfoComm Co., Ltd. Director
Taiwan Telecommunication (Fujian)
Co., Ltd. Director
Taiwan Telecommunication Industry
Co,, Ltd. Director
Tatung Co., Executive Vice President
Tatung System Technologies Inc.
Chairman
Tatung Mexico S.A. de C.V Chairman
Tatung InfoComm Co., Ltd. Chairman
Tatung University Graduate School of
Material Science Professor
Tatung University R&D Division
Director
CPT Ltd. President
CPT Display Technology (Fujian) Ltd.
Chairman
CPT Display Technology (Shenzhen)
Ltd. Chairman
CPTF Visual Display (Fuzhou) Ltd.
Chairman
Chunghwa Picture Tubes (Wujiang) Ltd.
Chairman
CPT TPV Optical (Fujian) Co., Ltd.
Chairman
CPT (Malaysia) Sdn. Bhd. Chairman
CPT (Kampar) Sdn. Bhd. Chairman
New Kingston Enterprise Limited
Chairman
Toppan Chunghwa Electronics Co., Ltd.
Director
National Chiao Tung University
Department of Management Science
Professor and Director of Graduate
Studies
Pan Shi (Xiamen) Real Estate
Development Co., Ltd. Representative to
Institutional Shareholder
Hsieh Li Law Office Director
Lawyer
Green Energy Co., Ltd. Supervisor
Chunghwa Electronic Investment Co.,
Ltd. Director
Tatung Fine Chemicals Co., Ltd.
Supervisor
Tatung Co., Head of Financial
Department
Tatung InfoComm Co., Ltd. Supervisor
Tatung UK Ltd. Director
Tatung Chugai Precious Metals Co., Ltd.
Supervisor
Chunghwa Electronics Investment Co.,
Ltd. Director
Chih-Sheng Investment Co., Ltd.
Supervisor
12
Tatung Wire and Cable (Wujiang) Ltd.
Chairman
Elitegroup Computer System Chairman
Tatung Netherlands B.V. Chairman
Tatung Czech s.r.o Chairman
CPT (Bermuda) Ltd. Director and Vice
President, Forward Electronics Co., Ltd.
Director
Grand Cathay International Asset
Management Co., Ltd. Director
CPTF Optronics Co., Ltd. Director
Giantplus Technology Co., Ltd. Director
Xiamen Overseas Chinese Electronics Co.,
Ltd. Director
Makolin Electronics (M) Sdn. Bhd.
Chairman
Bensaline Investment Ltd Director
Banglor Investment Ltd Director
Dalemont Investment Ltd Director
Daliant Investment Ltd Director
Shang Chih Semiconductor Co., Ltd.
Supervisor
Shang Chih Investment Co., Ltd. Director
Nature Worldwide Technology Corp. Director
Tatung System Technologies Inc. Supervisor
Tatung Co., of America Inc. Director
Tatung Electronics (S) Pte. Ltd. Director
Toes Opto-Mechatronics Co., Supervisor
Chyun Huei Health Technologies Inc.
Supervisor
Name
Title
Yang
Supervisor
Cheng-Chieh
Chi Tung-Fa
Supervisor
Positions at CPT and other companies served concurrently
Forward Electronics Co., Ltd. Supervisor
Tatung System Technologies Director
Tatung Forestry & Construction Co.,
Supervisor
Taiwan Aerospace Corp. Supervisor
Tatung Precise Meter Co., Ltd.
Supervisor
Taiwan Video & Monitor Corp
Supervisor
Tatung Co. of Japan Inc. Supervisor
Sequal Technologies Co., Ltd. Supervisor
Chunghwa Investment Co., Ltd. Supervisor
Shang Chih International Co., Ltd. Director
Tatung Energy Technology (Wujiang) Inc.
Director
Fig 5. Company organization
The Shareholders General Meeting
The Board
Chairman (1)
Directors (6)
Independent Directors (3)
Supervisors (16)
Audit Committee
13
Quality General Division
Intellectual Property
Awareness Promotion
Office
CRT Business Unit
Small & Medium TFT
Product Business Unit
Procurement General Division
Supply Chain Management
General Division
NB Business Unit
Display Business Unit
Administration Center
Research and
Development Center
Manufacturing General
Division
Financial General Department
Safety and Health General
Division
Legal & Intellectual
Property Division
President
7.2 Financial performance
Despite the tough business environment, we continued our development and achieved our business
goals in TFT operation by controlling inventory efficiently and improving cost structures to
enhance our profit margin. CPT prioritized making profit instead of expanding its market share
with the prerequisite of delivering high-quality products. Moreover, CPT emphasized more on
inventory control than utilization improvement to achieve order confirmation, which helped us
lower our costs on material preparation and production. CPT also focused on the niche market to
create profitability and implement well-managed plans such as production line consolidation and
manpower restructuring. In addition, CPT implemented the profit center management approach so
that each business unit could control costs effectively and provide superior customer-oriented
services for clients. Through organization restructuring, enhancement of versatility and response
capabilities, we shall improve customer satisfaction and bring the organization’s power to focus
while bettering our product planning. Last but not least, CPT has established a knowledge platform
to gather and share the wisdom and knowledge of all CPT employees so as to achieve strong and
long-term competitive advantages in the dynamic market.
With the hard work from all CPT employees in 2008, we achieved consolidated revenue of NT$
118.5 billion. Over 87% of our revenue came from the TFT-LCD (thin-film transistor liquid-crystal
display) operation, with a shipment of 22.78 million pieces of large-sized TFT (thin-film transistor)
panels, and 51.6 million pieces of small- and medium-sized TFT panels. CPT’s Netbook panel
market share reached 22%, ranked the second largest in the world. In 2008, CPT made a great
contribution to the public on information technology, telecommunication and entertainment by
producing approximately 20 million CRT units, over 22 million large-sized TFT pieces and over 50
million small and medium sized TFT pieces, thanks to the collective wisdom and efforts of all
CPT’s investors and employees.
From 2007 to the first half of 2008, the prosperous TFT market demand and over positive
estimation caused active reinvestment in the expansion of the TFT industry, which lead to
unbalanced supply and demand, fierce price competition, and severe price drop in all CPT product
lines. Together with worldwide economic downturn caused by the subprime mortgage loan crisis
and Wall Street financial crisis, the selling price of IT panels fell by more than 35% while the
selling price of TV panels fell by more than 40%. As a result, the reduction of costs could not offset
the decrease in product selling prices, leading the Company‘s consolidated profit to NT$ -13.9
billion in 2008.
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The condensed balance sheet and income statement for CPT during the last two years are as shown below:
Unit: NT$ 1,000
Year
By the end of 2008 By the end of 2007
Item
Current Assets
30,809,015
52,708,181
Fixed Assets
95,401,771
109,507,983
Long-term Investments
36,894,204
36,818,634
Other Assets (including intangible
4,307,827
5,555,717
assets)
Total Assets
167,412,817
204,590,515
Current Liabilities
56,221,090
55,725,148
Long-term Liabilities (including
24,296,950
43,645,566
the allowances)
Other Liabilities
5,564,970
5,141,304
Total Liabilities
86,083,010
104,512,018
Capital Stock
94,809,598
93,737,762
Capital Surplus
27,410
90,027
Retained Earnings
(13,250,884)
5,265,309
Shareholder Equity and other
(256,317)
985,399
items
Total Shareholders’ Equity
81,329,807
100,078,497
Difference
Amount
%
(21,899,166)
(41.55%)
(14,106,212)
(12.88%)
75,570
0.21%
(1,247,890)
(22.46%)
(37,177,698)
(18.17%)
495,942
0.89%
(19,348,616)
(44.33%)
423,666
8.24%
(18,429,008)
(17.63%)
1,071,836
1.14%
(62,617)
(69.55%)
(18,516,193)
(351.66%)
(1,241,716)
(126.01%)
(18,748,690)
(18.73%)
Analysis of Deviation over 20%:
The decrease in current assets was mainly due to the decrease in net sales in 2008, which results in a decrease in savings and account
receivable.
The decrease in other assets was mainly due to the decrease in Corning’s prepayment.
The decrease in long-term liabilities was mainly due to the reclassification of bonds payable from long-term to current.
The decrease in retained earnings was mainly due to net loss.
The decrease in capital surplus was mainly due to adjustment arising from changes in percentage of ownership in equity method
investees.
The decrease in other shareholder’s equity was mainly due to recognition of a greater unrealized loss on available-for-sale financial
assets than the previous year.
Table III. Balance Sheet
Unit: NT$ 1,000
Item
Year
2008
Revenues
103,754,325
Loss: Sales Returns
(859,419)
Allowances
(2,375,899)
Net Sales
100,519,007
Cost of Good Sold
(101,353,672)
Gross Profit
(817,293)
Realized (Unrealized) Gross Profit from
17,372
Affiliates
Realized Gross Profit
(817,293)
Operating Expenses
(11,232,154)
Income from Operation
(12,049,447)
Non-operating Income & Gains
5,308,844
Non-operating Expenses & Losses
(7,128,514)
Income from Operation of Continued Segment – (13,869,117)
Before Tax
Income Tax Expenses
(5,995)
Cumulative Effect of Accounting Principle
Income from Operation of Continued Segment –
After Tax
(13,875,112)
2007
Difference
%
145,341,281
(262,750)
(1,129,766)
143,948,765
(124,529,500)
19,419,265
(88,067)
(41,586,956)
(596,669)
(1,246,133)
(43,429,758)
23,175,828
(20,236,558)
105,439
(28.61%)
227.09%
110.30%
(30.17%)
(18.61%)
(104.21%)
19,331,198
(9,046,902)
10,284,296
2,220,899
(3,750,294)
8,754,901
(20,148,491)
(2,185,252)
(22,333,743)
3,087,945
(3,378,220)
(22,624,018)
(51,548)
-
45,553
-
(258.42%)
(88.37%)
-
8,703,353
(22,578,465)
(259.42%)
(119.73%)
(104.23%)
24.15%
(217.16%)
139.04%
90.08%
Analysis of Deviation over 20%:
1. Decrease in income from operation: In the second half of 2008, decrease in average selling price and demand caused utilization
rate to drop, resulting in the increase in cost of good sold and the decrease in gross profit.
2. Increase in non-operating expenses and losses: The increase was the result of sale G3 to Giantplus.
3. Increase in non-operating expenses and losses: The increase was primarily due to recognizing losses in long-term investments
and inventory.
Table IV. Income Statement
15
7.3 CPT and stakeholders
CPT is committed to understanding the needs of its stakeholders through communication, which is
why the Company has established various channels of communication for investors, customers,
employees and communities. Descriptions on the means of communication are provided below.
CPT shall strengthen its communication channels in the near future in order to better satisfy the
needs of its stakeholders.
Table V. Stakeholders
Stakeholders Frequency of communication
Topics of concern
Investors
Quarterly investor conferences Company profit
The annual shareholders general Risk management
meeting
Customers
Customer service system
Employees
Employee mailbox
Routine meetings
Quality
Management (ISO
9001)
Environment
Management (ISO
14001)
Corporate social
responsibilities
(SER)
Employee rights
(SA8000)
Environmental
products (ROHS,
WEEE)
Wages
Benefits
Working
environment
16
Efforts by CPT
CPT has not only been
routinely convening investor
conferences and shareholders
general meetings but also set
up a designated section on its
corporate website, designed to
allow investors to provide
their feedback in real time for
effective communication
CPT’s
customer
service
department has endeavored to
keep in touch with customers
and taken the initiative to
offer services relating to
product development and
quality services. We shall
continue to maintain our
management systems and
continue to strive to meet our
customers’ expectations
Here at CPT, we believe
employees to be an essential
resource to the Company,
which is why CPT has always
strived to provide a safe and
comfortable
working
environment
for
its
employees.
CPT offers a rich pool of
education
and
training
resources
to
enhance
employees’ productivity and
their
awareness
as
a
contributing member of CPT.
Stakeholders Frequency of communication
Topics of concern Efforts by CPT
Lastly, CPT also convenes
employee
communication
meetings regularly along with
dedicated
employee
mailboxes and a discussion
forum so that employees may
submit their suggestions for
the Company.
Communities Annual events and community Impact to the CPT has implemented various
specific events
environment
environmental monitors and
Contribution
to worked hard to minimize the
society
impact of its operations on the
environment and the society.
In addition, CPT has also
been actively participated in
community
services
and
events.
CPT has been an active
sponsor of Paper Windmill
Theatre’s cultural events
Government Irregular audits
Legal compliance CPT has continued to remain
agencies
Seminars
Impact to society compliant to the government’s
Event participation
Impact to the regulations and participated in
environment
various events organized by
the government on top of
cooperating with pertinent
government policies.
17
7.4 Reconstruction of CPT’s corporate procedures
7.4.1 Corporate Procedure Optimization -PLM
Starting from 2003, CPT has initiated its product lifecycle management (PLM) platform. The
system features a product-centered joint R&D working platform that houses all product related data
and processes. The IT system on the platform enables effective integrated control and operation of
these data to analyze pertinent information derived from specific products during their lifecycles to
further increase the value of product data re-utilization. Scope of PLM is illustrated in the image
below:
Fig 6. Scope of relevance for CPT’s PLM
With the introduction of the PLM system, CPT has benefited in various areas such as accelerated
product development, improvement in quality, customer satisfaction and efficiency of knowledge
management, including:
Improvement in the Time-to-Market speed
Allows plants/customers/affiliates at different locations to engage in the joint design process via
the Intranet/Internet
Prevent similar problems from reoccurring during the design or manufacturing process through
its problem and counter the strategy management system
Incorporation of points of inspection for design and manufacturing quality within relevant
processes for better control
Satisfies customers’ demands for product development speed and requirements for product
specifications and quality
Internal Asset & IP re-use
18
7.4.2 Corporate Procedure Optimization -APS
Apart from the construction of the PLM system platform, in light of existing product market trends
and demands for speedy and precise production planning, CPT introduced Advanced Planning and
Scheduling (APS) in its operating procedures in 2007. The system features advanced information
technology and planning techniques to provide feasible demand planning, material planning,
production capability planning and production scheduling after taking limited corporate resources
into account so as to satisfy customers’ needs and cater to demands in the highly competitive
market.
In order to truly cater to all customer orders and make optimal utilization of limited resources in
order to achieve overall supply and demand planning for the Company by generating different
tiered production planning and scheduling, the APS features the following functionalities:
Synchronized concurrent planning
Constraint-based planning
Optimization planning
Real-time planning
Decision support ability
APS offers improvement upon the errors and inaccuracy of traditional MPS and MRP operation
logic by comprehensive planning to achieve the results of optimized production. The calculation of
all limited resources needed helps CPT to realize the model that produces the maximum results,
which in turn accomplishes the ultimate objective of satisfying customer needs.
Fig 7. CPT production operation IT system architecture
Note 1: AS400 refers to the fundamental system interface that has been extensively used at CPT
Note 2: T2, L1A, L1B and L2 are LCD plants; Y1, Y2, H1 and H2 are CF plants; SDT, CTOC, FDT and WJ are LCM plants
19
7.4.3 Introduction of ERP system in the future
In an attempt to consolidate its entire corporate chain, adopt full computerization internally and
improve the effectiveness of its decision assistance system, CPT has launched its next generation
ERP system architecture in 2008 to shape the objective of staying competitive in the market over a
long run. With the guidance and assistance from local and foreign partners renowned for their
experience in the domain, CPT’s next generation ERP system shall deliver substantial
competitiveness and open up to numerous business opportunities for the Company:
Fig 8. CPT ERP system architecture
Fig 9. Forecast of post-EPP introduction benefits
20
VIII. ES (Employee Satisfaction)
Chunghwa Picture Tubes and our employees
21
8.1
Employee appointment
Since its initiation in 1971, CPT has strived to become an established manufacturer of professional
display devices. After more than 30 years of hard work, CPT today has over 23,000 employees all
over the world on its pay role as of 2009. In Taiwan alone, CPT hires approximately 8,500
employees, with roughly 14,500 employees in China and other territories.
We live in an era of knowledge economy, and CPT is well aware of the fact that talented personnel
is the key to sustained operation for the Company. With regards to personnel recruitment, we are
proud to point out that the quality of our human resources has been improving constantly. In terms
of academic qualifications, approximately 90% of CPT’s indirect labor force has college degrees or
higher. In addition, roughly 93% of our direct labor has senior high school degree or higher.
The average age of CPT employees is around 33 years of age. In terms of employees’ age
distribution, approximately 65% of our employees are below the age of 30 while the remaining
35% are above the age of 30. The ratio of male-to-female employees hired at CPT is roughly
70%-30%. All CPT employees are entitled to equal opportunities for development regardless of
their difference in age or gender.
Generally speaking, CPT primarily hires workers locally and strives to provide employment
opportunities to job applicants with physical/mental disabilities. In foreign territories, almost 99%
of employees we hire are from the local population and more than 80% of the management in
offshore branches is from the local population.
All CPT employees must be interviewed or screened before they may be hired with the approval of
competent supervisor.
CPT has made the effort to ensure that no employees would face discrimination against their race,
class, language, beliefs, religion, political affiliation, ancestry, gender, marital status, appearance,
facial features, birthplace, sexual orientation, age or previous status as union members.
8.2
Wages and benefits
CPT has clearly defined the rights and obligations between the Company and its employees to
ensure the soundness of its modern management system, which would in turn facilitate the
Company and its employees to work closely together for the prosperity of the corporation. And as
such, CPT has referred to the Labor Standards Act and pertinent regulations in the establishment of
work regulations and personnel management charters that make it mandatory for the Company to
publish all rules governing employee recruitment, working hours, duration of breaks, leaves,
holidays, training, welfare, wages, reward/punishment, evaluation, severance, resignation, dismissal,
retirement, compensation for occupational hazards, safety and health, labor communications and so
forth.
All CPT employees must be interviewed or screened before they may be hired with the approval of
22
a competent supervisor.
CPT has made the effort to ensure that no employees face discrimination against their race, class,
language, beliefs, religion, political affiliation, ancestry, gender, marital status, appearance, facial
features, birthplace, sexual orientation, age or previous status as union members.
There will be no differential treatment in terms of wages remitted to CPT employees because of
their gender differences. Employees with similar or identical job descriptions shall receive wages
that are equivalent. However, discrepancies in wages due to valid, non-gender related factors (i.e.
seniority, reward/punishment, performance and so forth) shall be exempted from this rule.
8.3
Communication with employees
CPT is committed to improving labor relationships by promoting collaboration between the
Company and its employees through the establishment of an internal communication platform so as
to improve productivity. The management has made the effort to close the gap with employees by
approaching them at the plants in the format of labor conferences and seminars of various levels in
order to hear employees’ suggestions for the company and input for improvement. Through
real-time response to feedbacks and queries, CPT has successfully improved the Company’s overall
operational efficiency. CPT’s management status conference serves as a useful channel for the
Company to reveal its management status and operation orientations to ensure consistent, public,
speedy and accurate disclosure of company information.
Table VI. Methods of communication
Method
of Target
Frequency
communication
Organization
All employees
Once/1~2 per
Friendliness Survey
year
Management
All employees
Twice/year
Conference
Supervisor Seminar
Supervisors
Twice/year
Employee Seminar
All employees except
Twice/year
supervisors
All employees
Once/week
Human
Resource
News Flash
Feng Hua Ying Xiang
All employees
Once/month
Latest Information
All employees
Once/month
EIP page
All employees
Irregular
When it comes to CPT’s internal communication platform, it is noteworthy to point out the fact that
the Company has implemented the Organization Friendliness Survey in order to ensure a clear
grasp of employee’s satisfaction with regards to company welfare and environments. Results of the
survey were then used to formulate solutions for improvement with routine follow up on the results.
With such systematic channels of communication for company benefits, CPT would be able to
adequately understand the specific benefits and level of welfare that employees really want.
Apart from consolidating a relationship of trust with employees through its internal communication
platform, CPT has also initiated its external promotion platform that is primarily responsible for
23
disclosing information such as CPT’s management results, new technology developments,
improvement in production capacity/yield rate, information on large scaled events/award giving
ceremonies/exhibitions, CPT’s participation in social charity and accomplishments and so forth.
Such positive information would not only strengthen employees’ recognition of the Company and
the sense of honor they associate with CPT but also makes it possible for the Company to produce
relevant publications and feedback to all employees around the world through its electronic
platform so that every CPT employee is up to date on the Company’s latest information.
Fig 10. Internal communication platform
8.4 Employee training
CPT has adopted attitude, knowledge and skill to be the core of employee training, which is
complemented with constantly optimized and innovative learning systems and resources to
cultivate talents with outstanding capabilities and finest conduct. Under CPT’s training system with
six inter-related components, the Company offers an average of 30 hours of training for every
employee through the implementation of actual lectures and online courses in an effort to create a
working/learning environment that would help all employees to grow and share their knowledge.
The relationships of CPT’s talent cultivation systems are shown in the image: the concepts overlap
one another in different concentric circles with timelines and career developments incorporated to
guide employees through CPT’s cultivation plan for continued learning right off from the moment
they join the Company. Benefits of core learning for the six component systems are described as
follows:
z New employee training system: creates accessible learning opportunities for new employees
with systematic and formalized training complemented with diversified and interactive
education so as to achieve the goal of socialization for new employees.
z Group training and awareness shaping system: achieves consistent learning results while
shaping team awareness for the trainees by matchmaking CPT’s corporate cultures and specific
traits of trainees.
z Professional expertise training system: with clearly defined syllabus grading and pairing with
corresponding courses, the system helps the trainees to better understand their current and
24
future learning paths while acquiring the required professional skills and R&D knowledge
z Management training system: with a soundly planned gradual development scheme for
management competence, the system is designed to deliver an outstanding team of management
supervisors for the Company.
z General competence training system: through constantly optimized and updated training
materials and methods, the system is designed to equip employees with the essential knowledge
and competence they need to improve their performance at work and achieve the best results.
z Self-inspirational training system: creates non-professional opportunities for learning to shape
trainees’ attitude for self-learning and growth so that they would be able to put their knowledge
and skills to good use at the appropriate occasion.
Fig 11. Training blueprint
8.5 Employee complaint handling system
CPT has set up a feedback mailbox as a channel for employees to express their opinions and
suggestions in the hopes of improving labor relationship.
When an employee feels that his rights have been challenged or if he has a differing opinion, he is
required to go through the Company’s administrative system to file his complaints/suggestions in
the format of a written report. The competent supervisor/department shall look into the matter and
notify the results or how the matter would be handled to the employee who lodged the complaint.
In order to protect all employees from sexual harassment at the work place, CPT has established
pertinent regulations on sexual harassment prevention and reporting channel to ascertain that the
work place would be free from sexual harassment.
8.6 Retaining talents and employee healthcare
For the past 37 years of its operation, CPT has always strived to be an exemplary corporation that
would not only lead the domestic sector to grow but also demonstrate how specific concepts could
be realized. And as such, CPT has emphasized the following measures to realize the LOHAS
concept:
25
Quality lifestyle at CPT for all employees - Life
Provide an environment of excellent welfare and benefits for employees
Host an assortment of recreational activities for employees
Initiate an internal platform to allow sharing of welfare and benefit resources
Conduct annual review of the interactive welfare/benefit communication platform
Outstanding work environment at CPT without tobacco - Quit and Win
Promote and disseminate the advantages of a smoke free workplace
Promotion events and dissemination for healthy lifestyle
Outstanding employees at CPT in excellent health - Health
Annual health check up services delivered right at the plants
Incredible coverage rate of 99% for employees who have received their health check up
(excluding employees on leaves without pay who couldn’t take the health check up due to
conflicting schedules)
Various employee-assistance solutions, covering psychological/legal/financial management
help
Outstanding products from CPT with the Environmental Movement - Environmental Product:
Green Product
Environmental product development
Incorporation of environmental concepts in CPT’s ten operational objectives
Outstanding environment at CPT to achieve sustainability - Sustainability
More involvement in charity
Energize relevant associations and organizations
Turn the environment green
CPT has not only made it a point to provide the best workplace environment possible to its
employees but has also established numerous themes of healthcare as a gesture of concern for
employees’ health. The fact that Common Health magazine rated CPT as one of “Taiwan’s top ten
LOHAS corporations” in its March 2008 issue adequately reflected the effort and care that CPT has
given to ensure its employees’ health.
26
Fig 12. Employee recreation space
Employee health check up: CPT has arranged for a comprehensive health check up for all
employees to be held on a yearly basis with tests for employees responsible for normal and
special operations (i.e. working in a high temperature environment, radiation, noise or handling
of specific chemicals and so forth). Employees whose test results showed signs of anomaly and
have been included in a tier-two watch list would be arranged to go through an evaluation by
qualified occupational health physician based on their previous health check up records and
their existing working environments to determine if transfer/re-allocation of tasks were needed.
Promotion of low fat and low carbohydrate meals: CPT has hired qualified nutritionists to
prepare healthy meals at the employee canteen that are low in fat and carbohydrates (with less
than 500 Cal) to offer employees a healthier choice at the canteen.
Healthy dieting and weight loss: in light of the problem with obesity caused by increasing
number of employees who eat out (meals that tend to be too exquisite prepared and oily)
coupled with the fact that they have few opportunities for physical exercises due to busy work
schedules, CPT has taken the initiatives to offer a variety of physical exercise instructions (i.e.
fitness workout exercises, video viewing, healthy meals, interactive sessions, introducing
motivational and inspirational slogans at the workplace) to help employees work while feeling
relaxed and lose weight healthily. In fact, participants in CPT’s weight loss club have
demonstrated an average decrease of 8 kg in body weight, which is rather impressive.
Fig 13. Weight loss club
27
Smoke free workplace: Modern medicine has proven that smoking is one of the fundamental
danger factors for illnesses such as acute coronary syndrome, cerebrovascular disease,
atherosclerosis, digestive ulcer and leading cause of chronic bronchitis. In order to provide a
smoke-free environment for employees and to help smokers quit the habit, CPT has launched a
“quit smoking campaign” to help employees distance themselves from the hazards of smoking
and provide non-smoking employees with a healthy workplace environment that is smoke-free.
Fig 14. Quit smoking campaign
華映好生活，員
工好樂活：Life
華映好職場，無
菸最健康
Quit and Win
L OHAS
華映好員工，健
康企業行
Health
華映好環境，永
續地球樂
Sustainability
華映好產品，產品
綠發展
Green Product
28
IX. SS (Society Satisfaction)
Chunghwa Picture Tubes and society
29
9.1 Industry-Government-Academia collaboration
While striving for the prosperity and development of the Company, CPT has not neglected the
importance of cultivating local talents to be devoted to the field of panel technology development.
Through its commitment to industry-government-academia collaboration, CPT shall fulfill its
management philosophies of “Creation, Perfection and Teamwork”.
◎
Creation
Enrich the visual experience for consumers with innovative technology:
CPT received the 15th Industrial Technology Advancement Award for Outstanding Innovation from
the MOEA in 2007. The MOEA has conferred the prestigious award to CPT to recognize the
efforts and actual results achieved by CPT in the area of corporate innovation and industrial value
redefinition. CPT has gone to great lengths to ensure the confidentiality of its patents and
intellectual properties within the corporation and to maintain the space and freedom for corporate
R&D. In addition, CPT has also injected energies for research and development from outside the
corporation in order to turn industry-government-academia collaboration into quantifiable
economic values to encourage competitors in the domestic sector to adopt honest business practice
and ultimately accomplish the objective of turning Taiwan into a base for innovative research and
development in the international circle.
◎
Perfection
Full promotion of comprehensive technological and cultural education in the pursuit for perfection
in the area of talent cultivation:
(1) Campus Optronics Seminar: In an effort to cultivate future technological talents to ensure
sustained development for the domestic optronics sector, CPT has launched its campus
seminar series starting from 2005. The event involves a team of elite members from CPT
specifically chosen for the vibrant energy to host a nationwide tour of campus seminars to
share their professional knowledge with aspiring students. In addition, the seminars also
incorporated a panel dismantling activity that allows students to have hands on experience
with TFT-LCD panels through experiments.
(2) Campus event sponsoring: Apart from planning the Campus Optronics Seminar to introduce
technological education to students, CPT has also been actively involved in the sponsoring of
culture related events held on campuses. For example, CPT has been a sponsor of the job
seminar held at National Chiao Tung University, featuring 104 Corporation’s General
Manager Mr. Yang Chi-Kuan who shared his insight on the new values in the workplace. In
addition, CPT has also sponsored the Plum-Bamboo Cultural Contest organized by National
Tsing Hua University to assist in the holistic development for students.
30
◎
Teamwork
Industry-Government-Academia Collaboration for joint research and development:
Apart from aggressively cultivating talents in the field of research and development to boost CPT’s
internal research energy, the Company has also devoted substantial effort to the development of
prospective display technologies through Industry-Academia collaboration (with Tatung University
and National Chiao Tung University) since 2004. In addition to donating the CPT Building as a
base for R&D operations, CPT has also offered scholarships to support the progress of prospective
research projects in the field of innovative display technology by actively cultivating exceptional
talents with specialization in the domain of integrated optronic display technology. The
collaboration allowed CPT to turn the actual results of research and development into contribution
towards the society. During the span of the collaboration, a total of 139 patent applications were
submitted and 30 applications have already been granted. The fruitful results of the collaboration
has proven the collaboration platform to be a cradle for the nurturing of outstanding talents in the
field of display technologies.
Inauguration of the CPT building: laying the groundwork for in-depth industry-academia
collaboration between CPT and National Chiao Tung University
The CPT Building was donated by CPT to National Chiao Tung University with the intention of
initiating a base of operation for industry-academia collaboration in the domain of prospective
display technology between National Chiao Tung University and CPT. The CPT Building is
located next to Engineering Hall D at the NCTU Kuangfu Campus, right in the center of the
campus. The construction of the CPT Building not only solved the problem of insufficient
classrooms for the Optronic Engineering Department and the Display Institute (which were newly
established in 2004) but also served to improve the quality of the teaching environment and
research while strengthening the university’s interaction with the industry in researches. The total
cost of construction for the CPT Building came to NT$ 200 million and it was completed for
inauguration in December 2006. The building has one basement floor and seven stories above the
ground level to cover a floor area of 2,814 ping in total. The first floor of CPT building houses the
international conference hall; offices and classrooms are located on the second floor and the
research laboratories of NCTU’s Display Institute and experiment laboratories for CPT-NTCU
collaboration can be found on the remaining floors.
31
Fig 15. CPT building
9.2 CPT and charity
(1) More involvement in charity: out of CPT’s social citizen obligations, the Company has invited
charity organizations such as the Red Cross (donating a total of 523 unit of blood), Genesis
Social Welfare Foundation, Children Are Us Foundation and so forth to participate in CPT’s
annual family day. Not only that, we even encourage employees to donate their resources and
care to the needy people around them as a gesture of fulfilling our social responsibilities.
(2) Energize relevant associations and organizations: CPT has taken part in numerous events
organized by charity organizations, such as serving disadvantaged minorities during weekends
and holidays to care for the disadvantaged minority and bring CPT’s warmth to society.
(3) Social participation: Here at CPT, we believe in caring for others just as much as we care for
ourselves. Through the participation of community events that focus on sustainability, CPT
seeks to fulfill its corporate social responsibilities by taking part in community events.
The account of sponsoring the Paper Windmill Foundation:
Fig 16. The Paper Windmill event
CPT is committed to fulfilling its corporate social responsibilities. And as such, the Company
identifies with Paper Windmill Theatre’s philosophy of “First Mile Kids’ Smile” for giving back to
the society and has agreed to become the theatre’s sponsor for its tours of art performances by
children. Incidentally, the theatre has broke records in terms of the number of audience that
attended the performance several times during the tour (4,000 audiences at Bade, 3,800 audiences
at Lungtan and 4,200 audiences at Yangmei). The success of the performances meant that the
donations from CPT and its employees were put to the fullest use so that the paper windmills could
soar across every mile of road in remote towns of Taiwan. Although CPT is not a pioneer in the
area of corporate social responsibilities, the issue and responsibility that we are really concerned
about is being constantly involved.
32
The Paper Windmill Foundation was formerly known as Paper Windmill Theatre, which was
jointly initiated in November 1992 by the Foundation’s incumbent creative consultants Dr. Wu
Ching-Chi, motion picture scholar Hsu Li-Kung, director Ke Yi-Cheng, film coordinator Lo Pei-An
and theatre coordinator Li Yung-Fung. At the end of 2006, the team launched the “Paper Windmill
Children’s Art Project across 319 Townships/Villages” in the hopes of exposing exquisite
performance art to children living in 319 townships and villages across Taiwan. The theatre did not
apply for any subsidy from the government for the entire project and relied solely on modest
donations from businesses and individuals to bring tour performances to every single township and
village on the island. The goal of the initiative was to help children get closer to the world of arts so
as to inspire their gifts of innovation, aesthetics and compassion for others. Through its
undertakings, the theatre has made an incredible contribution to help culture and art take root in
Taiwan as the theatre devotes itself to the development of the artistic environment and culture in
Taiwan.
9.3 Community participation
There is a famous proverb in the Chinese speaking communities around the world: “Better is a
neighbor that is near than a brother far off”. Out of its social citizenship obligations, CPT has
spared no efforts in its promotion of community care. Apart from constantly encouraging CPT
employees to care for the needy to fulfill our social responsibilities, the Company is also committed
to become the champion of humanistic spirit by showing sympathy and compassion through the
injection of substantial amount of money and manpower to the cause of charity. In order to show
that CPT cares for the rural areas of Taiwan and the disadvantaged minority, the Company has
donated a total of NT$ 1,286,289 in 2008.
CPT has participated in an assortment of social charity works, such as:
Relief – for low-income households along with scholarships for students with financial
difficulties.
Community care – cards and gifts for weddings and funerals.
Fig 17. Sponsoring communities
Charity events
Sponsoring community events
33
Sponsoring school events
Sponsoring charity organizations
Donating trees
Fig 18. CPT employees making generous donations to victims of the Sichuan earthquake
Facility adoption
Road cleaning for nearby areas
Park cleaning
Park and community public facility maintenance
Fig 19. Participation in the road cleaning project in Taoyuan County
By extending its reach into communities and listening to the people’s voices, CPT has achieved
considerable success in being part of community charity events. Apart from propelling local
development, the Company has also taken an active stance in reaching out to numerous low-income
households in different regions of Taiwan to help these people get by. Not only that, CPT has
endeavored to spiritually purify the residents of these communities and influence them with culture
in the hopes of improving these people’s lives, both physically and mentally.
34
Item
Scholarship
for
students
with
financial difficulties
Emergency relief
Weddings
funerals
and
Festive
celebrations/charity
events
Sponsoring
community events
Community
park
facility maintenance
Community public
cable maintenance
Patrol
vehicle
maintenance and gas
subsidy
Community
adoption
Fire brigade
Other
road
Description
Students from households with financial difficulties residing in
the neighborhood of CPT plants may receive a scholarship of
NT$ 2,000~5,000 with the approval of the neighborhood chief
as an incentive to motivate them to learn.
Guided by the principles of compassion, CPT offers various
emergency relief to residents of nearby neighborhood who have
been involved in emergencies (the neighborhood chief is
required to produce relevant substantiating documents).
Out of the Company’s wishes to stay in synch with the pulses of
local community, CPT makes it a point to send notes of
congratulations/condolences
to
residents/employees
of
government agencies/volunteer police and firefighters in
proximity of CPT plants in the event of weddings or funerals.
CPT has been actively promoting local charity activities for
influential organizations such as temples, schools and so forth.
By sponsoring various acts of charity and events that promote
higher environmental protection awareness or local festive
celebrations, CPT would be able to refine residents’
self-cultivation.
As CPT could not have accomplished the success it enjoys
today without the support from various organizations and
people, the Company is therefore extremely supportive of all
cultural activities hosted in communities in close proximity to
all CPT plants. This reflects CPT’s philosophy of “Giving back
to the community what we have taken from them”.
CPT has change the classification of land under its possession
and donated it to become a public park. The park has been
furnished with a number of recreational facilities such as a
pavilion, benches, slide, swing, seesaw, “shake me” and so
forth to provide an ideal spot for the recreation and relaxation
of nearby residents.
As CPT is committed to improving the quality of day-to-day
lives for residents in nearby communities, the Company has
made an effort to enlist the service of vendors to perform
routine maintenance and repair of public cables in the
communities to make concrete improvements to the quality of
residents’ lives.
CPT has offered to collaborate with civil defense and patrol
brigades in neighboring communities by providing subsidies for
patrol vehicle maintenance and gas in an effort to strengthen
community safety and protection.
CPT has adopted roads in communities neighboring its plants
and assumed the responsibilities to keep the adopted roads
clean (length of road adopted: approximately 600 meters of
Huantung Road and Hsingshan Road with an additional 300 or
so meters of Kueishan Street) to beautify and greenify the
surrounding communities.
Consultant fee for Yangmei Women’s Fire Prevention Brigade
PR spending during Chinese New Year holidays
Total amount that went towards social welfare in 2008: NT$ 1,286,289
Table VII. Budget for community participation
35
Amount injected
0
70000
17550
367475
373564
78000
34200
150000
113000
30000
52500
9.4 Anti-corruption
In order to consolidate CPT’s corporate cultures of being “Upright, Honest, Diligent and Prudent”
while encouraging all employees to uphold their integrity and offer their professional services to
maintain the Company’s image as an honest corporation, CPT has specifically established the
Principles Governing the Acceptance of Gifts and Invitations to Wine & Dine in 2007. The
documentation functions as a guideline for all CPT supervisors and employees to follow in their
day-to-day operations and administrative works. The documentation entails the following rules:
All CPT employees shall strive to maintain the Company’s reputation and credibility by
avoiding all actions/behaviors that would damage the Company’s image.
All CPT employees are strictly forbidden from demanding or accepting gifts or other forms of
benefit from interested parties in their line of work.
All CPT employees are strictly forbidden from abusing their powers to accept bribes or
kickbacks.
All CPT employees shall avoid engagements that might result in direct conflict of interests to
the Company. In addition, all CPT employees are expected to disclose relevant information in
the event of such incidence.
All CPT employees may only accept a gift/souvenir if the item in question is a commemorative
memorabilia manufactured by the giver’s company, in which case the recipient would be
entitled to deal with the gift as he/she sees fit.
All CPT employees are expected to politely decline or return gifts, money or benefits offered to
them.
All CPT employees are strictly forbidden from accepting invitations for recreation. Any
employee with doubts regarding this rule shall seek clarification from his/her supervisor.
CPT takes pride in the fact that the Company has never once been associated with any incidence of
corruption. We shall remain relentless in championing CPT’s guiding philosophies of being
“Upright, Honest, Diligent and Prudent” so as to maintain the Company’s excellent image and
reputation.
36
X. GS (Global Satisfaction)
Environment Safety & Health Management (E.S.H.M.)
37
10.1 Environment management system
10.1.1 Environment safety & health policies
CPT has come to understand that corporate management is not merely about making profits but
also entails efforts to environmental protection employee care. This is why the Company has
always stood by the spirit of “Keep Moving” to achieve continuous improvement, which is the key
to the Company’s sustained operation. And as such, CPT has established the following environment
safety and health policies to determine the direction of the Company’s efforts in this area:
Legal Compliance
Staff Participation
Continuous Improvement
Perfect Communication
Improve Performance
10.1.2 Environment safety & health organization
The Risk Management & Environment Safety Division (which answers directly to the President’s
Office) shall be responsible for CPT’s environment management system. The Risk Management &
Environment Safety Division is required to follow CPT’s environment safety and health policies for
the planning, promotion and implementation of relevant management operations. In addition, each
department shall appoint its safety, health and environmental (abbreviated as SHE) committee,
which would be responsible for the promotion of operations pertaining to environment, safety and
health within their corresponding department. The SHE committees are expected to convene SHE
meetings once a month to discuss, follow-up and review the implementation status of
safety/environment/health operations in order to accomplish the goals of full participation,
thorough communication and continuous improvement.
10.1.3 Environment safety & health management system certification
Based on the schedules of plant constructions and mergers, various CPT plants have been certified
to pertinent environment management and safety/health management system standards as shown in
the following table:
Year
1998
2001
2004
2006
2009
Description
Taoyuan Plant certified to the ISO14001 standard
Taoyuan Plant certified to the OHSAS18001 standard
Lungtan Plant certified to both the ISO14001 and OHSAS18001 standards
Yangmei Plant certified to both the ISO14001 and OHSAS18001 standards
The merged Hukou Plant is estimated to be certified to pertinent standards by 2010
Table VIII. History of CPT’s system accreditations
In order to ensure that the Company’s environment safety and health management system operates
38
normally, CPT has implemented self-audits and enlisted the assistance of external organizations to
perform unbiased audits so as to follow-up on the system’s implementation status and ensure its
compliance to CPT’s policies and objectives.
Fig 20. Environment Safety & Health Management System Certificate
10.1.4 Environment safety & health education/training
With regards to education and training, in order to increase all CPT employees awareness of the
Company’s environment safety and health system, training has been divided into different levels for
general employees, specialist personnel and management staff to ensure that proper environment,
safety and health training are provided to all employees based on the nature of their responsibilities
and characteristics of their work areas.
Level
General employees
Specialist personnel
Management staff
Course description
Management system, general safety, health and environmental protection, fire
fighting training
External training for the operation of potentially hazardous machinery, external
training for the supervision of specific operations, emergency response training
Emergency response commander training and CSR training
Table IX. Employee training
Fig 21. Environment safety & health training and drill for employees
39
CPT has included a dedicated section for environment, safety and health related information on its
intranet for employees wishing to find out more on information such as environment/safety/health
dissemination, education/training, emergency response, rectification of errors and so forth. It has
become one of the channels of communication between CPT’s environment safety and health
division and all CPT employees.
Fig 22. Section on environment safety & health on CPT’s official website
40
10.1.5 Environment safety & health awards and accomplishments
Year
2007
Description
1. Lungtan Plant awarded the Health Promotion Label, Health Perfection Award and
Outstanding Witness Award in the Healthy Workplace Self Certification program
2. Yangmei Plant rated as an Outstanding Smoke-free Workplace
3. Yangmei Plant certified to the National Healthy Workplace Health Promotion Label
standard
4. CPT rated as “Outstanding Company for Voluntary GHG Reduction” by the
MOEA
2006
1. Lungtan Plant awarded the Outstanding Result Award and Diamond Award for
Health Promotion
2004
1. Lungtan Plant certified to both the ISO 14001 and OHSAS 18000 standards
2001
1. Yangmei Plant rated as an Outstanding Business Unit in the Promotion of Labor
Safety and Health
1999
1. Yangmei Plant rated as Outstanding Plant in Water Conservation by the Water
Resource Agency of MOEA
2. Taoyuan Plant awarded the Award of Excellence for Outstanding Eco-Friendly
Office by the EPA
3. Taoyuan Plant rated as Outstanding Plant for Recycling of Waste Resources by the
Environmental Protection Bureau of Taoyuan County Government
1998
1. Taoyuan Plant rated as Outstanding Plant in Water Conservation by the Water
Resource Agency of MOEA
2. Taoyuan Plant awarded the Outstanding Member Award by the Industrial Safety
and Health Association
3. Taoyuan Plant awarded the Outstanding Energy Conservation Award by Taiwan
Power Company (Taoyuan District Office)
4. Yangmei Plant awarded the Outstanding Energy Conservation Award by the MOEA
5. Taoyuan Plant certified to the ISO -14001 standard
6. Yangmei Plant rated as an Outstanding National Business Unit for Safety and
Health by the Council of Labor Affairs
7. Taoyuan Plant rated an Outstanding Plant for Workplace Safety and Health
8. Taoyuan Plant rated an Outstanding Plant for pollution prevention by the Industrial
Development Bureau
9. Taoyuan Plant passed the VPP review implemented by the Council of Labor Affairs
10. Yangmei Plant passed the VPP review implemented by the Council of Labor
Affairs
1997
1. Taoyuan Plant awarded the Outstanding Energy Conservation Award by the MOEA
2. Taoyuan Plant rated as “Class A” in pollution prevention by the Environmental
Protection Bureau of Taoyuan County Government
3. Yangmei Plant certified to the ISO -14001 standard
4. Taoyuan Plant awarded the Outstanding Industrial Waste Minimization Award by
the MOEA
5. Yangmei Plant rated as Outstanding Plant in pollution prevention and safety/health
performance by the National Federation of Industries
6. Yangmei Plant awarded the Award of Distinction for Outstanding Eco-Friendly
Office by the EPA
1996
Yangmei Plant awarded the Outstanding Industrial Waste Minimization Award by the
MOEA
1992
Yangmei Plant awarded EPA’s first Enterprise Environment Award
Table X. List of environment, safety and health awards conferred in chronological order
41
10.2 Environmental products
In light of the growing awareness and recognition of the Environmental concept, eco-friendliness
would no doubt become a mainstream movement in the international circle for the days to come.
And as such, CPT has strived to become compliant to various directives and regulations enforced
by the EU and renowned international manufacturers ahead of time by conducting extensive
collection of regulations promulgated by various nations and assessment of CPT products to
determine their compliance to relevant eco-friendly and environmental requirements since 2004. In
addition, the Company has ensured that eco-friendly design concepts are introduced to the process
of product development right from the start, along with concepts of energy conservation, material
conservation, ease of recycling and so forth. CPT takes the requirements of environmental products
enforced by nations around the world very seriously and has therefore initiated its Environmental
Product Planning Department in 2006 to monitor the trend of environmental protection around the
world and actively ensure that all CPT products are fully compliant to relevant requirements. Not
only that, in an effort to ensure that all raw materials are controlled right from the source, CPT was
the first domestic manufacturer to initiate its full compliance scheme for order placements with the
suppliers to ensure that all products are 100% manufactured in compliance to the requirements for
environmental products by minimizing the amount of hazardous substances used in the products as
an effort to protect our planet.
永續發展
污染預防
清潔生產
製程
資源節約
環境管理
產業
綠色設計
產品
LCA
Fig 22. CPT’s Environmental Policy
10.2.1. Chunghwa Picture Tubes Environmental Product Policy
•
Compliance with regulations and customer demands
* Full compliance with the RoHS and WEEE directives by ensuring that all CPT products do
42
not contain substances that are harmful to the environment while meeting the customers’
demand for waste electrical and electronic equipment recycling rate to prevent a large
amount of electronic equipment waste from ending up in landfill. In addition, CPT has
improved the ratio of reused materials in its products to minimize their impact on the
environment.
* Compliance with the spirits of EuP directive, which include Eco-design, Conformity
Assessment and Self-declaration. In addition, CPT shall disclose adequate information
related to the products to the consumer.
•
Deliver products that are free from hazardous substances
* Actively gather relevant information on restricted substances for environmental protection
to get a head start on the verification of international environmental regulations and
environment protection NGO (Non-Government Organization) requirements.
* Continue to strengthen the Company’s environmental supply chain by promoting systematic
control so as to offer products that are free of hazardous substances to customers.
•
Dedication toward environmental design and development
* CPT has the capacity to fulfill and assess the product lifecycle concept as described in the
Annex I Eco-Design Requirement of the EuP directives.
* It is dedicated to the introduction of product lifecycle concept to identify the fundamental
points of environmental design through assessment data in order to steer towards
environmental design and development.
43
10.2.2 RoHS:
In light of the latest international trends and customer demands, CPT has gone to great lengths to
restrict the amount of RoHS substances used in our product parts, components and packaging
materials through full compliance on order placements with suppliers since 2008. The full
compliance will serve as a strict monitor of restricted substances to ensure that all upstream and
downstream vendors are duly controlling the use of hazardous substances to prevent products
containing toxic substances from entering into the environment.
Environmental knowledge service for upstream and downstream vendors– Taiwan’s first
example of full compliance on order placements with suppliers
Ｃ
Ｃ
Ｐ
Ｔ
ＣＰ
ＰＴ
Ｔ
CPT產品環境禁限用物質符合：
歐盟RoHS指令(2002/95/EC)
歐盟包裝及包裝廢棄物指令(94/62/EC)
歐盟特定危害物質的使用與生產限制指(76/769/EEC)
鎳(Ni)指令(94/27/EC)
供應商
客戶
偶氮染料指令(2002/61/EC)
全氟辛烷磺酸的銷售與使用限制指令 (2006/122/EC)
蒙特婁議定書-全面管制產品殘留使用CFCs、海龍、四氯化碳及三氯化
碳、HCFCs、HBFCs、溴化甲烷等臭氧層破壞物質
斯德哥爾摩公約-全面管制產品殘留使用持久性有機污染物(POPs)
國際性公約/規範、區域指令/條文…etc.
44
10.2.3 WEEE directives
In an effort to meet our customers’ demands and demonstrate autonomous management, CPT has
taken every relevant measure to prevent large quantities of electrical and electronic equipment
waste from ending up in landfill by increasing resource reuse. Presently, our product recycling and
recovery rates have exceeded 75% and 65% respectively, which are compliant with the EU’s
WEEE directives to minimize waste generation. In light of the WEEE directives, CPT has
assembled a special task force to produce a WEEE product disassembly manual, which contains
detailed instructions on how to disassemble CPT products for our customers.
10.2.4 EuP directives:
The Directive 2005/32/EC on the eco-design of Energy-using Products (EuP Directives in short)
was promulgated in August 2005. Presently, member nations of the European Union have
announced their intention to draft relevant laws and establish clearly defined requirements on
eco-designs for various products in the hopes that eco-design can be incorporated to energy-use
products with concepts of product lifecycle, which would ultimately enhance the rate of utilization
for energy-using products and minimize the impact on the environment throughout their lifecycle.
In the near future, all products have to meet the EU’s eco-design requirements and bear the CE
Marking in order to be freely distributed in the EU market.
In an effort to achieve compliance with the EU’s EuP directives ahead of the game, CPT has
implemented a comprehensive product lifecycle investigation in 2007 with products featuring 17”
TFT-LCD modules as the target. Through this investigation, CPT was able to introduce eco-design
concepts and training across all CPT plants (covering design, the manufacturing process, packaging
and so forth) while establishing goals for improvement. The operation yielded considerable success
and results. In addition, we have also contacted all collaborating vendors of target products to
conduct a comprehensive investigation on energy-using products and waste generation so as to
produce CPT’s first Eco-Design Instruction. The documentation would serve as an international
standard reference for the Company’s product information disclosure in the future.
45
™ 生態化設計相關之教育訓練
全廠教育訓練
LCI盤查分工
生態化設計概念
盤查資料取得
製程討論
生態化設計導入
測驗
10.2.5 EPD (Type III Environmental Product Declaration):
In the international market, environmental label and declaration are widely recognized as tools that
allow stakeholders to express and reveal their environmental perspectives and environmental
protection related information for specific products. The credibility and validity of inspection data
could be further strengthened through audits performed by third party authentication institutions. It
would ensure that most comprehensive information (within the lifecycle of specific product)
pertaining to its eco-friendliness be made available to the purchasing personnel so that purchasing
personnel/consumers could choose the most eco-friendly products. CPT has designated its 220
WA01 V2 products as the target of this EuP lifecycle inventory and collaborated with its finest
partners to obtain the most accurate and reliable data. Based on the results of the Type III EPD
inventory conducted at CPT’s suppliers, the weight of product parts and components inspected for
the purpose of this inventory comprise 99% of the actual product. The figure has already reached
the required standard for product disclosure and CPT has been awarded the EPD Certificate in
October 2008.
46
According to the definition of ISO 14020 system by the International Standard Organization
(ISO), there are three types of environmental labels and declarations, namely Type I
Environmental Label (ISO 14024), Type II Self-declared Environmental Claims (ISO 14021)
and Type III Environmental Declaration (ISO 14025). The characteristics of the Type III
Environmental Declaration involve the incorporation of lifecycle inventory (LCI) and
assessment to disclose relevant product lifecycle data along with descriptions on product
environmental features in the format of additional environmental information. The
information has to be verified by an independent and unbiased third party institution in
order for relevant stakeholders to assess the product’s environmental characteristics.
(2008.10.22)
CPT’s plants that have been certified for the IECQ QC080000 standard include its Taoyuan
Plant, Lungtan Plant, Wuzhou Plant, Fuzhou Plant, Fuzhou Plant for Medium and Small Sized
TFT modules and Shenzhen Plant. The certificate is valid from 2009/2/10 through 2012/2/9
(2008.12)
Fig 23. IECQ QC08000 Certificate
47
10.2.6 Environmental design
Due to the concepts of eco-design that have been introduced, CPT has incorporated relevant
environmental concept design in its products and packaging
Packaging
With regards to the usage of packaging materials, the Company has focused on the minimization of
the environmental impact by reducing the quantities of trees logged. In 2007, CPT adopted the
practice of recycling carton boxes for products shipped from China. The rule requires all carton
boxes must be used no less than three times before their disposal. In addition, 70% of the packaging
material, carton boxes and buffer materials were made from recycled paper to cut down on the
usage of primary pulp and in turn reduce the quantities of trees logged.
Apart from its carton box recycling scheme, CPT has also made an effort to optimize the
dimensions of its carbon boxes and simplify packaging design to prevent reduced buffering and
shock-absorption performances due to over packaging. The number of pieces loaded into each box
has also been increased to improve the freight loading rate. The design has effectively cut down the
costs of transportation by 50% and dramatically reduced the amount of carbon emissions from
transportation.
Fig 24. Environmental packaging design
48
Pcs / Box
L x W x H(mm)
Old
10Pcs
474 x 370 x 347
New
20Pcs
474 x 370 x 347
Power saving
Back in 2007, CPT has already commenced the development of environmental design for its
products. For instance, the design of using 16 lamps in the backlight module of a 37” TFT-LCD
panel has been reduced to 10 lamps through environmental design. The total power consumption
was cut down from 120W to 70W, which translates to 42% of power saved.
Fig 25. Backlight power saving design
37” Lamp Number Reduce
Diffuse
Conventional
Diffuser Plate
16 Lamps
16 Lamps
Reflector
16 Lamps
Power Saving 42%
High Gain
Advanced
10 Lamps
Diffuser Plate
10 Lamps
Reflector
10 Lamps
With conventional designs, existing light source control area technology is limited to direct type
backlight design. However, the design of direct type backlight makes it difficult to reduce the size
49
of modules. In order words, the advantages of control area technology (high dynamic contrast,
energy saving and so forth) render module slimming impossible.
CPT takes pride in its capacity to breakthrough the existing bottlenecks of traditional design by
incorporating its modular LGP technologies in its 31.5” display device lineup to integrate area
control technologies with side-edge type backlight design. This effectively overcomes the technical
difficulties in reducing the thickness of display modules and CPT has successfully produced
modules with thickness at merely 9.3mm to dramatically improve the aesthetics of the display
device. Not only that, CPT’s display device is capable of achieving a high dynamic contrast of
160,000:1 when playing dynamic images with a power consumption performance that is 50% of
traditional designs. These specifications are fully compliant with the requirements for
environmental products.
Fig 26. 31.5" Modular Type LGP for LED TV
Modular type BL
BL PWM
To Source
BL Index
Gray Level
Local dimming /DBC function block diagram
z ECO
- Lower power consumption
Average Power Saving>50%
- High lumen light source (LED)
- Local Dimming technology
- High efficiency optical films
z Slim design
- Modular type BL
- Optical design optimization
- MDL thickness: 30.8mm (9.3mm)
z High contrast
- Local dimming technology
- High Dynamic Contrast > 160,000:1
50
10.3 Environmental protection
10.3.1 Power management
Compared to 2007, CPT’s power consumption for the entire year of 2008 was dramatically reduced
by a margin of 46,662,581 units of electricity, which translates to 4.33% less power used compared
to the previous year. The Company’s successful attempt at power conservation is attributed to
various power conservation programs implemented at each CPT plant.
Power conservation programs implemented by CPT can be separated into the following categories:
Power conservation with illumination
Through the corporate wide illumination survey, illumination at offices, production area,
precision operation area and so forth has been duly adjusted in compliance with the CNS
Lighting Standard to reduce power consumption.
With regards to outdoor illumination, the duration of illumination time has been adjusted
according to seasonal requirements; alternative lighting arrangements have also been
adopted to reduce the number of illuminated lamps.
Power conservation with air-conditioning
CPT has announced that the temperature of all CPT offices should be maintained at
26~27°C to stay compliant with the government’s policies for energy conservation and
carbon reduction.
The air-conditioners in clean rooms are adjusted to operate at lower speed.
Power conservation with the manufacturing process
Manual operated valves for gas emission have been installed on manufacturing machinery.
These valves would be operated according to the machinery’s operational status to reduce
power consumption during gas emissions.
Modify machine CDA to limit utilization
Modify machine to improve the pure water utilization rate for water consumption
Adjust power allocation according to machine operation status
1100
2007
Million
1050
2008
1000
2007
2008
Power consumption (KWH)
51
Fig 27. History of CPT’s annual power consumption
10.2.2 Water resource management
The total quantity of tap water and underground water consumption for CPT in 2008 came to
10,254,164 m3 and 2,223,131 m3 respectively, totaling 12,477,295 m3. Compared to 2007, the
figure showed a decrease of 1,317,180 m3 of water used, translating to a reduction of 9.55%.
Water consumption has always been one of the primary considerations for panel manufacturers in
their decision to set up production plants because water resources have a significant influence on
the manufacturing operations. This is why CPT has spared no efforts or resources in its investment
on water conservation related facilities.
For example, CPT has adopted a Reverse Osmosis Rejection (ROR) system that makes use of the
filtering principle through a semi-permeable membrane to sift the impurities in water so that clean
water can be used repeatedly in the manufacturing process.
In addition, CPT has also introduced a Membrane Biological Reactor (MBR) system, which is
capable of processing and filtering organic wastewater with the bioreactors that are attached to the
membrane surface. The highly concentrated biomass in this system is able to adequately digest
organic substances found in the wastewater. Due to its effectiveness, the processed organic
wastewater can be recycled and reused.
With the aforementioned water conservation facilities, CPT has achieved a water conservation rate
of 9.55%, which means 9.55% less wastewater discharged to minimize the impact to the
environment.
14
Million
13
12
11
2007
2008
Water consumption (M3)
Fig 28. History of CPT’s annual water consumption
52
Fig 29. Wastewater treatment facility
10.2.3 Overview of energy conservation results achieved by CPT
Power consumption
46,662,581 units - reduction by 4.33%
Water consumption
1,317,180 m3 – reduction by 9.55%
Heavy crude oil
20,104KL – reduction by 42.85%
Diesel
231KL – reduction by 73.51%
Liquid petroleum gas
38,612 KG – reduction by 3.92%
10.2.4 Pollution prevention
Always a believer in the coexistence of corporations and the natural environment, CPT has already
considered the potential impact to the environment during the stage of production facility design.
And as such, CPT has invested a substantial amount of funds for the construction of various
pollution prevention facilities.
With regards to water pollution, the wastewater treatment facility constructed by CPT is not only
compliant with Taiwan’s existing environmental protection regulations regarding the discharge
standard, the facility is also complete with treatment and recycling systems for organic and
inorganic wastewater, which are capable of processing recycled wastewater before the processed
water is reintroduced to production related processes to reduce water consumption and wastewater
discharge. The ROR system (refer to the section on water resource management) is one of the many
53
facilities that CPT has invested in.
Fig 30. ROR water recycling system
With regards to air pollution prevention, existing panel manufacturing processes are known to
produce three major types of exhaust emissions: acidic gas, alkaline gas and organic gas. In order to
achieve air pollution prevention, CPT has adopted the latest technologies and techniques available
presently to implement pollution prevention. In addition, CPT has also introduced real-time
monitoring to oversee the operation status of relevant pollution prevention facilities to ensure that
all facilities are operating normally. For example, CPT has adopted the Regenerative Thermal
Oxidizer (RTO) system to process organic exhaust gas. The system is capable of achieving a
combustion degree of 700~800°C and offers the advantage of effective decomposition of organic
gas through high temperature and the thermal energy is captured during the process to achieve
energy conservation.
Fig 31. Heat retaining emission treatment facility
When it comes to disposal of wastes, CPT has always strived to conserve all resources as much as
possible and therefore has made the priority of reuse -> recycle -> incineration -> landfill to handle
waste substances and materials in the hopes of minimizing the environmental impact. In 2008 alone,
CPT recycled a total of 27,367.03 tons of waste and reused up to 17,454.96 tons of the recycled
materials. This translates to a 63.78% of recycling and reuse rate. As for the remaining amount of
waste that could no longer be reused or recycled, the waste was either incinerated or covered in
landfill.
54
10.4 Environment protection performance
CPT has always stayed ahead of the competition in its efforts to implement energy conservation
and carbon reduction events. The Company has formulated the objective of “17657” for the year
2009 with the intention to take its energy conservation and carbon reduction effort up a notch.
“17657” is CPT’s voluntary energy conservation and carbon reduction objective for 2009: “17”
stands for the common goal of carbon reduction for all CPT employees, defined by 7 carbon
reduction declarations. “6”, “5” and “7” stand for the waste recycling rate of 60%, 5% energy
conservation and 70% carbon reduction. We hope that by the end of 2009, CPT will be able to
accomplish these energy conservation and carbon reduction goals.
55
10.5 Greenhouse gases emission
Despite the fact that Taiwan was not listed in Annex II of the Kyoto Protocol, CPT was compelled
by its global citizen obligations and vowed to adhere to the spirit of the Kyoto Protocol to become
an active participant of the World LCD Industries Cooperation Committee (WLICC) in order to
contribute to the cause of greenhouse gas reduction ever since the section on emission trading was
included in the Protocol. CPT has been implementing greenhouse gas emission inspections since
2006 and a year later the Company decided to entrust the task of verification to a third party
institution with adequate qualifications. In addition, CPT has made an effort to compile its
greenhouse gas emission statement on a yearly basis to monitor the Company’s status of
greenhouse gas emissions. With regards to pollution control, CPT has constructed its thermal
oxidizer facility for the treatment of PCFs. In fact, CPT has achieved a processing rate of 90% to
cut down on its greenhouse gas emission. Not only that, CPT also attempted to control the source of
greenhouse gases by replacing high potential greenhouse gases with low potential ones in its
manufacturing processes to achieve greenhouse gas emission reduction.
2005
2006
2007
1,468,162.99
1,252,022.67
1,511,482.50
Unit: ton CO2e/year
Table XII. History of CPT’s annual CO2e
Fig 32. Heat retaining emission treatment facility
Fig 33. Greenhouse gas inspection statement
56
10.6 Environmental issues of concern
CPT Longtan＇s factory is located in Longtan Fengshan River upstream tributaries, the Longtan after wastewater treatment
plant effluent is discharged to the Fengshan River tributary Siaoli Creek, the company committed to developing an
environmental impact assessment "In the future if the development of downstream when the water source of water , will be
specifically to deal with methods of waste water discharges to the water intake downstream. In November 2007 ,the E.P.D.
convened
Environmental Impact Assessment meeting, Water company stated that Fengshan River designated as drinking
water source of water, therefore, the company handled in accordance with an active research program to analyze and propose measures in
response, after several meetings to discuss , in May 2009 at the Environmental Impact Assessment Review Committee, 177th meeting,
adopted by AU Optronics & Chunghwa Picture Tubes effluent diverted to the streets Creek Long Pai Southern District of 『 Mei-Du-Li
Bridge. EIA has now sent 『variance analysis of the final version』to the EPA review, EPA review to be finalized.
57
Development and
GRI G3 Index
GRI Content Index
impact of
Report Section
Strategy and Analysis
infrastructure
VI、Profile of
investments and
Chunghwa Picture
services provided
Tubes Ltd
Organizational Profile
EC8
VI、Profile of
for public benefit
Chunghwa Picture
through commercial,
GRI Ref.
or pro bono
II、Scope
engagement.
VII、CS (Customer
Governance
Satisfaction)
description
Environmental Performance Indicators
EN1
Report Section
EN2
Direct economic
value generated and
EN3
costs, employee
compensation,
EN4
investments,
consumption by
primary energy
10.3.3
consumption by
10.3.3
Energy saved due to
and payments to
EN5
capital providers and
governments.
conservation and
efficiency
10.3.1,10.3.2,10.3.3
improvements.
Coverage of the
Total water
EN8
8.2 ,8.6
withdrawal by
10.3.2
source.
plan obligations.
Percentage and total
Procedures for local
EN10
hiring and proportion
volume of water
10.3.2.
recycled and reused.
of senior
from the local
10.3.3
primary source.
retained earnings,
EC7
are recycled input
Indirect energy
community
management hired
materials used that
source
donations and other 7.2
defined benefit
10.3.1,10.3.2
Direct energy
revenues, operating
EC3
weight or volume.
materials.
distributed, including
organization’s
Materials used by
Percentage of
Economic Performance Indicators
EC1
9.2,9.3
inkind,
Tubes Ltd
Report Parameters
primarily
Total direct and
8.1
EN16
community at
indirect greenhouse
gas emissions by
10.5
weight.
locations of
Initiatives to reduce
significant operation.
EN18
greenhouse gas
emissions and
10.5
reductions achieved.
EN22
58
Total weight of waste 10.3.3
by type and disposal
endings.
method.
Initiatives to mitigate
Composition of
environmental
EN26
impacts of products
and services, and
governance bodies
and breakdown of
10.2.7,10.6
employees per
extent of impact
mitigation.
LA13
Labor Practices and Decent Work
LA1
type,employment
other indicators of
8.1
diversity.
Ratio of basic salary
Benefits provided to
LA14
full-time employees
Society Performance Indicators
8.2,8.4
Nature, scope, and
temporary or
effectiveness of any
part-time employees,
programs and
by major operations.
practices that assess
Education, training,
and manage the
counseling,
SO1
prevention,and
LA8
workforce members,
including entering,
8.6
operating,
and exiting.
community
Actions taken in
members regarding
SO4
serious diseases.
employee by
Product Responsibility Performance Indicators
8.4
Life cycle stages in
which health and
employee category.
safety impacts of
Programs for skills
products and
management and
services are
lifelong learning that
support the
LA11
continued
response to incidents 9.3
of corruption.
Average hours of
LA10
9.1,9.2
communities,
their families, or
training per year per
impacts of
operations on
risk-control programs
in place to assist
of men to women by 8.2
employee category.
that
are not provided to
8.1
membership, and
contract, and region.
LA3
to gender, age
group, minority group
Total workforce by
employment
category according
PR1
8.4
assessed for
improvement, and
percentage of
employability of
significant products
employees and
and services
assist them in
categories subject to
managing career
such procedures.
59
10.2.5
60