Taipei 101
Transcription
Taipei 101
2 About This Report Editorial Policy This is the second issue of the annual corporate sustainability report published by Taipei Financial Center Corporation (“TFCC”). This edition includes both Chinese and English version and a dedicated corporate social responsibility website. Through the publication of the report, we hope to provide a transparent disclosure of our efforts and achievements in economic, social and environmental aspects to stakeholders. Dedicated corporate social responsibility website: http://www.taipei-101.com.tw/csr.aspx?cid=8 Reporting Period The report covers TFCC’s corporate information regarding corporate social responsibility policy, material issues, responses and actions for the period ending 2013 (January 1, 2013 to December 31, 2013). The report also includes certain significant performances that are not carried out during this period. Reporting Frequency TFCC publishes a corporate sustainability report on an annual basis. Last issue (2012) was published in October 2013. Next issue (2014) will be issued in August, 2015. Boundary of the Report The report covers the economic, social and environmental performances of three main business units of TFCC: TAIPEI 101 Tower, TAIPEI 101 Mall and TAIPEI 101 Observatory. Reference The report adopts the framework of Global Reporting Initiatives’ (GRI) G3.1 Sustainability Reporting Guidelines as well as Construction and Real Estate Sector Supplement (CRESS) guidance. We also follow the Global Real Estate Sustainability Benchmark (GRESB) and provide a GRI index at the end of the report. TAIPEI 101 stands tall in a bustling city. It is the height that makes us proud and yet carries a heavy weight on our shoulders. As such, the competitive pressures we face should not be undermined. Every decision must be made based on a macroscopic point of view and yet pragmatic to performance. We also need continuous innovation, with the combination of human nature and technology, to maintain our leadership. Our performance in corporate social responsibility has been the subject of public concern. Therefore, through the publication of the corporate sustainability report, we can provide stakeholders some perspectives on TAIPEI 101’s development strategy and economic, social and environmental performance. 2013 was a harvest year for TAIPEI 101 Tower, Mall and Observatory on economic, social and environmental performance. Through collective efforts, TAIPEI 101 created a harmonious social atmosphere for stakeholders, shortened the distance among people, and brought pride and affection when people talk about TAIPEI 101. TAIPEI 101 is perceived in the general public’s mind as cultural and creative, intelligent environments and international landmarks, and has attracted many world-class companies. Our value added services help our tenants moving towards excellence and set to prompt TAIPEI 101 as Asia Operation Center. We not only set high standards in safety and security but also in comfort and quality customer service. We also gather international fashion brands and gourmets which allow customers to experience a magnificent shopping spree. Through various efforts, TAIPEI 101’s international recognition has enabled us to attract more domestic and overseas visitors to explore the building and local Taiwan culture and cuisine. In 2013, as the result of the balanced development in economic, social and environmental areas, TAIPEI 101 has evolved into a secure, intelligent and warm home that creates more value to stakeholders: Credibility of the Public Information The report is not certified by a third party agency. However, we are contemplating making this effort for future reports. The report is prepared to meet GRI G3.1 Application Level A requirements. Feedback If you have any questions regarding the report, please contact us at: Taipei Financial Center Corporation – Corporate Sustainable Development Team Address: 59F, No. 7, Section 5, Xinyi Rd., Taipei City 110 Telephone: +886 2 8101 7777 E-mail: [email protected] 1 Message from Chairman TAIPEI 101 has carried the mission of “Bringing the world to Taiwan; bringing Taiwan to the world” since groundbreaking of the project. With forward thinking and innovative ideas in mind, we continuously utilize the remarkable technologies of Taiwan to advance the efficiency of green building energy saving. TAIPEI 101 not only is the tallest smart green building in the world, but also provides the stage to showcase talented Taiwanese professionals. Through continuously striving for excellence in innovative management, efficiency management, energy saving, environmental protection, operation safety, quality service and social care, TAIPEI 101 has set several unprecedented records for Taiwan. We infuse life and soul into this great building with the blessing s of 23 million Taiwanese. We often demonstrate our influences in crucial moments, either by supporting Taiwan when needed or writing unforgettable stories which later become legends. TAIPEI 101 has long been recognized for its safety measures, environmental protection and energy saving performance. The “TAIPEI 101” brand also provides a great marketing channel for Taiwan, Taipei and Xinyi business district. With the global wave of building smart cities, TAIPEI 101 is set to be the leader in utilizing Taiwan’s technology capabilities and promoting our government’s efforts in economic development policies. We believe the investment in a smart business district will bring multiple benefits such as environmental protection and improvement of customer service quality. Therefore, we should learn from other benchmark buildings and we should encourage value chain collaboration, synergy creation, co-construction of a smart business district, sustainable development promotion and boosting international competitiveness. Eventually, the beneficiary will be the general public. We are keenly aware that corporate social responsibility should be built into the business strategy. We should maintain the balance between the steady profit and the core value of economic development and culture and art promotion. We combine public service activities with the development of cultural and creative industry, turn our extraordinary height into a new paradigm of cultural and creative public service activity and bring traditional culture onto the world stage. TAIPEI 101 is also equipped with leadership charisma which brings internal and external consensus and strength together, drives more social awareness and creates more value to society. We understand the height of the building will be surpassed, but the value beneath the surface is hard to surpass. Our in-depth values are the keys to keep TAIPEI 101 remarkable. In the path of sustainable development, our commitment to excellence aims to keep TAIPEI 101 not only going beyond the competition of the world’s super high-rise buildings, but also being the irreplaceable world-class leader in sustainability. Chairman 2 Message from CEO In a market of rapid changes, we firmly believe corporate social responsible is crucial to maintain sustainable development. When facing various challenges, we believe our mission of stabilizing society and protecting environment is as important as maintaining a steady profit growth. To implement corporate social responsibility, we communicate to stakeholders and share our management governance, social relationship and sustainable efforts through various channels. We also invite everyone to help us to map sustainable development strategies and actions. After several years of efforts and cultivations, TAIPEI 101 has grown profitable, largely due to sound corporate governance, transparent financial information and commitment to stakeholders’ expectations. The management team of TAIPEI 101 adapts to the environment and makes necessary changes to demonstrate management’s excellent ability in providing products and service quality improvement and attracting more multinational companies and international fashion brands to the office buildings and shopping mall. We expect to reach a 95% occupancy rate in the office tower in 2014. As cross-strait trade is becoming frequent and Taiwan tourism industry is taking off, we’ve also gathered collective efforts to achieve the greatest synergy in order to win praise from international media and encourage the customers and tourists to frequent the shopping mall. In terms of management, we believe pragmatism is as important as innovation and will share the profit with our employees and communities and created greater value for the country. We believe positive energy comes from positive thinking and it motivates people to look forward. We integrate corporate value with humanity and culture and advocate the concept of mindfulness, positive thinking to our employees, expecting them to instill the concept to their family members and communities. We have used TAIPEI 101’s high visibility in combining cultural creativity with social welfare. We sponsored various public activities and cultural creative events in 2013 to promote the unique Taiwan cultural creative products and spread love to those in need. For example, the first TAIPEI 101 Product Design Competition allowed young creative Taiwan talent to shine on the global stage. We care about the community and put a lot of effort into environmental protection. We intend to keep the tallest green building title by routinely monitoring the energy efficiency, making proper improvement to make sure the daily operation is not at the expense of the environment, and to provide more comfort to people. TAIPEI 101 also received Taiwan Diamond Level Green Building Certification in 2013, which is an indication that our efforts in energy saving and carbon reductions are being recognized. Furthermore, we provide green tour, the official website, Earth Hour or other media to plant the green seed and fulfill our commitment to environmental protection. The height of TAIPEI 101 represents not only Taiwan, the brand TAIPEI 101 created is also Taiwan’s pride. Because of the international recognition, we set the highest standards of self-discipline to comply with international development trends and to become a world model of high-rise building operation and management. Chief Executive Officer 3 CONTENT 05 Chapter 1 Accountable Governance 23 Chapter 2 Harmonious Relationship 55 Chapter 3 Green Homeland 4 About This Report Message from Chairman Message from CEO 01 02 03 Business at a Glance 06 Company Profile 08 Honors and Recognition Business Model 09 Business Management Strategy 10 Market Overview Corporate Governance 12 Governance Organization and Operation Mechanism 15 Corporate Social Responsibility Governance Risk Management and Response16 Operating Risk Management Mechanism 17 Safety Risk and Response Stakeholders and Material Issues 21 Stakeholder Identification and Communication 22 Material Issues Identification Service High-Quality Tenants 24 Grade A Service 25 Tenant Events 27 Tenant Satisfaction Survey Looking After Our Employees 28 Staff Profile 29 Employee Relations and Rights 30 Human Resources Management 33 Human Resources Development Meeting Customer Needs 36 Joyful Shopping Experience 39 Exploring the Observatory 40 Customer Complaint Mechanism 40 Customer Satisfaction Survey Creating Value for Taiwan 42 Let the World See Taiwan 44 Spread Love and Care for the Community 48 Promote Taiwanese Culture, Arts and Food Sustainable Supply Chain 52 Supply Chain Management 52 Sustainable Procurement Policy 53 Improve Vendors’ Personnel Quality Green Earth 56 Commitments to Mother Earth 57 Recognition for Environmental Protection 58 Environmental Performance Green Building 64 Green Shopping Mall 66 Green Tourism 67 Green Community 69 GRI G3.1 Index 70 Chapter 1 Accountable Governance 5 Business at a Glance Taipei Financial Center Corporation (referred to as TAIPEI 101) was established in 1997 and carries the mission of building a skyscraper in Taipei that showcases Taiwan’s economic power and brings Taipei to the world. We constantly strive for breakthrough and receive international recognition. Company Profile Taipei Financial Center Corporation, backed by 11 businesses, was established in October, 1997 as an effort to promote the government’s policy of building an “Asia Financial Center” in the then newly planned central business district – Xinyi district. The Company signed the contract with Taipei City Government to build Taiwan’s first large Build-Operate-Transfer (BOT) project. The company obtained the land development right from the city government and started to build a 508m height, 101 floors above ground and 5 floors below ground multifunctional building - TAIPEI 101. The building includes an office tower and a shopping mall. TAIPEI 101 Mall opened in November, 2003 and the office tower completed in December, 2004. The building received the tallest building in the world recognition from Council on Tall Building and Urban Habitat, CTBUH in 2004. The observatory, located on the 89th floor, opened in March, 2005. The first tenant of the office tower moved in April, 2005. We are responsible for the operation and management of the office tower, the shopping mall and the observatory. The organization’s scale, company structure or ownership has not undergone significant changes during the reporting year. 6 1. The number of employees includes full time employees and contractors. 2. The date of official opening 3. Main service area is Taipei, Taiwan 3 1.1 2013 TAIPEI 101 product and service summary ◆◆ China Development Industrial Bank Inc. ◆◆ China United Trust & Investment Corp. ◆◆ Chie-ho Engineering & Development Co., ◆◆ Walsin Lihwa Corp. ◆◆ Taiwan Stock Exchange Corp. ◆◆ China Life Insurance Co., Ltd. ◆◆ Cathay Life Insurance Co., Ltd. ◆◆ Cathay Construction Co., Ltd. ◆◆ Shin Kong Life Insurance Co., Ltd. ◆◆ Taichin International Bank ◆◆ Lin San Hau International Development Co., Ltd. 1.2 Taipei Financial Center Corp. milestones 1.3 TAIPEI 101 founding shareholders 1.4 Members to Associations 7 8 Business Model Our goal is to maintain steady profit growth and we want to become the world’s paradigm of supertall building management. We uphold the business philosophy of excellence, existing business improvement and operating efficiency and profitability improvement. In the meantime, we understand market trends, develop strategies and set measures to achieve our goals. Business Management Strategy Corporate Vision and Philosophy The company is a BOT project base company and the sole asset is TAIPEI 101. Therefore, our main focus has been on management and development of TAIPEI 101’s business opportunities. Our vision is to set world’s management model of supertall buildings. We have pursued excellence in innovative management, efficiency operation, energysaving and environmental protection, operational safety, quality service, and corporate social responsibility. Corporate core values Carrying the mission to bring Taipei to the world and being the internationally renowned tallest green building, we continue to manage the office tower, shopping mall and observatory with innovation and forward thinking. Our core values “ SPIRIT” represents service with passion, operating with integrity, respect for our stakeholders, and emphasizes the spirit of innovation and teamwork to surpass our own expectations. 1.5 1.6 The mission of each business unit Corporate core values - SPIRIT 9 Market Overview Taiwan’s 2013 economy maintained a limited momentum followed by the turbulence in the international economy the previous year. Taiwan’s exports and private consumption remain weak. Nevertheless, the company's revenue was not affected by the slow economic growth and continued to grow. In 2013, operating income was $12,850 million, representing an increase of $1,380 million from previous year or a growth rate of 12%. Pre-tax profit was $1,300 million, representing an increase of $420 million from previous year or a growth rate of 49%. Net profit after tax was $1,080 million, representing an increase of $350 million from previous year and also a growth rate of 49%. Details of the company's operating performance and financial information are available in the company's 2013 annual report. During 2013, we paid a total of $123,000 in penalty due to violation of regulations4 . Relevant improvement measures have been included in this report. Also, we received $9.19 million government subsidy to improve the building’s energy efficiency. Please refer to the chapter on “Green Building” for further detail. In 2013, there was nearly 7.03 million tourists visiting Taipei, a growth of 9.64% from previous year’s 6.41 million. Group tour from mainland China grew 9.52% and individual travelers from mainland China grew 176%. Of all the tourists, 2.296 million visited TAIPEI 101 Observatory in 2013. The souvenirs shop and the various stores sales increased by 31% and 9% each. The overall tower revenue, including office rental and the observatory, grew 10% compared to 2012. Looking ahead for the company’s future financial growth, the signing of the Memorandum of Cross-Strait Cooperation in Financial Supervision (MOU) and the Economic Cooperation Framework Agreement (ECFA) will bring in more mainland China companies to set up in Taiwan and more mainland Chinese tourists to visit Taiwan. Therefore, the company will continue to improve services, to update the hardware and software, to fulfill our corporate social responsibility, so we could further improve operational performance and create greater value for stakeholders. Office leasing in Taipei has become competitive. In recent years, many developers have built high-rise office buildings in Xinyi district. Some office buildings in the suburb of Taipei city are also completed. For the lower rental level, many companies have moved their offices to Neihu and Nankang areas, creating a suburban office cluster. In general, tenants usually elect to renew their lease and stay put or move to suburban Taipei to avoid cost increases. In 2013, the total take-up of Grade A office space in Taipei is about 20,000 pings. The new leases in our building account for approximately 30% of total market take-up, and our occupancy rate has reached 92%. The revenue of Taiwan’s department stores was impacted by the economic slowdown. For 2013, the annual revenue was $288.6 billion, a merely 3.1% growth compares to 2012. Despite the poor performance in other shopping malls during 2013, the revenue of TAIPEI 101 Mall grew 5.5% when compared to 2012, mainly due to successful tenant mix, exclusive merchandise, active promotion and capitalization of the Metro Xinyi line operating at the end of the year. The result is above the market average with a market share of 4%. 10 1.7 Financial summary 4. Three violation of regulations, one for parking lot useage, one for employee overtime issue and one for high-priced promotional prize. 1.8 Future development 11 Corporate Governance We always uphold the principles of impartiality, justice and openness, adhere to social norms and laws, to establish good corporate governance. In order to protect the rights and interests of stakeholders, we adapt to the changing environment to allow flexibility of organizational structure and strategy, inspire innovation and gather collective forces in order to implement early plan changes and seize profit opportunities. Governance Organization and Operation Mechanism Corporate Governance Structure The organizational structure of TAIPEI 101 is sound and each department has clear definition of duties. We emphasize on the importance of professional division of work. Each division adjusts its functions along with the change of the company’s strategic goals. The company formed a procurement department on December 2013 to strengthen the division of work, improve the efficiency of procurement and reduce costs. The 2013 TAIPEI 101 Organization Structure is as below: 1.9 12 TAIPEI 101 Organizational Structure The CEO takes charge of the weekly meeting and discusses management issues and specific targets with heads of departments to keep striving and improving business. The CEO also holds monthly meetings regarding current business performance, future targets or potential threats and action items or improvement plans at the beginning of every month. Day to day financial matters monitoring is done through the heads of department by reviewing daily operating reports and comparing and tracking the variances between the actual and target performances. The chairman takes charge of monthly business management meetings to discuss future strategic planning with related departments. 13 Board of Directors Governance Structure The company is a public company. The majority of shares are held by 18 principal shareholders, who are major corporations in their respective industries. The Board of Directors of TAIPEI 101 has 13 director seats and 4 supervisor seats. Directors are elected by the shareholders and are the best in their industries with outstanding contributions and achievements in their respective areas. They not only propose recommendations and strategies to help the company’s future development but also oversee and govern the interests of the company’s shareholders. During 2013, only one member of the board is the Chief Executive Officer of the company, who is not independent of the company’s operations. However, the position is elected by the Board of Directors. The company is not a listed company and does not have an independent seat. Auditing, nomination, remuneration or other types of functional committees are currently not in place. 1.11 The structure of Board of Directors as based on age and gender Compensation Structure for Senior Position 1.10 Institutional shareholders and percentage Remuneration paid to Directors and Supervisors is mainly based on current year financial performance and operating results and is determined in the founder’s committee. Remuneration paid to the president is determined by the Board meetings. Remuneration paid to the vice president is based on their contribution to the company as listed in the standard manager hiring policy. Employee salaries are approved in accordance with personnel regulations, and combined with employee performance evaluation, which includes operational performance, public service activities and environmental protection. The company's profit is shared and allocated to all employees according to the company’s bylaws. Communication with the Highest Governing Authority 14 The company uses “Procedure of the Board Meeting” and “Insider Trading Rules” as the principal to govern and avoid Board members’ conflict of interest. The Board of Directors meets every two months, with a total of six meetings during 2013. The members of the Board act as the proxy of the major shareholders. Therefore, shareholders use the Board Meeting as the main mechanism to suggest the direction of the operation. A shareholders’meeting takes place every year. Interim shareholders’meetings take place as needed so shareholders have the most up-todate company development information and can provide timely recommendations. Monthly employee meetings also help employees to understand the company’s operating situation. Corporate Social Responsibility Governance Social Responsibility Policy and Strategy The Company is committed to maintain good governance and adherence to societal norms and regulations to create the maximum profit for the stakeholders. To achieve corporate sustainable development, we have incorporated social responsibility into our core business. Employees’ contribution to economic, social and environmental areas is linked to their performance evaluation. Various channels are utilized to broadcast our continuous sustainable development risks and challenges. 1.12 Corporate Sustainable Development Team Structure To achieve sustainable development and execute the related mission, we understand communication among departments is the key. We need to increase employees’ corporate social responsibility awareness and endow the employees with a sense of responsibility and belief, so that they can grow with the company. Therefore, we have begun developing corporate social responsibility policies and system in 2013 in order to establish a sound economic, social and environmental goals and measures. We expect to establish a Corporate Sustainable Development Team in 2014 and desire to promote corporate social responsibility implementation through a top-down approach. We hope to inspire employees’ dedication and innovation so the sustainable development goal can be achieved in this rapidly changing world. The Corporate Sustainable Development Team is currently set up to report the status of the economic, social and environmental targets to the Board of Directors from time to time. The CEO will be the Director and the CEO’s assistant, who arranges assignments to each sub-committee, will be the executive secretary. The Team consists of three sub-committees which are corporate governance, social relations, and environmental sustainability. The head of departments are the team members who are responsible for promoting and executing related sustainable development action items and reporting the latest development to the Director. M a n a g e m e n t d eve l o p m e n t i s r e s p o n s i b l e fo r t h e implementation of the operating and financial risks, performance evaluation, procurement, supply chain management, regulations and code of ethics, and to communicate to the stakeholders. Social relations are responsible for customer service and market research, labor rights policy advocacy, implementation of public service activities and product and service quality improvement. Environmental sustainability is responsible for developing strategies in response to climate change, implementing and maintaining quality green buildings and establishing a healthy and safe environment. 15 Risk Management and Response The construction and operation of TAIPEI 101 presented many challenges. However, due to sound operating risk management and various safety measures, we do not fear the obstacles but gain experience from it. This has allowed us to come this far. We firmly believe that prudent risk management, that can be adapted to the outside environment changes, would help the company to maintain steady profit and create a safe and harmonious environment. Operating Risk Management Mechanism Internal Audit The Company has an internal auditing department which carries out ex ante and ex post internal control risk assessments based on “Internal Audit Implementation Guidance.” Ex ante evaluation provides active risk prevention and risk identification before various activities being taken place. All company’s operation activities shall be in accordance with the guidance, establishing appropriate procedures and performing an ex post compliance audit. Based on the target achieving rate and the monetary amount that is impacted, the risk is categorized as high, medium or low level. The internal auditing department will review and discuss result of each activity and identify high risk projects and to form the basis of annual improvement plans. We classify operating performance, financial data correctness and regulation compliance as high risk areas of the company. If deficiency is identified, we will correct it immediately. Compliance and Ethics The company values the principle of honesty, integrity and responsibility for all operational activities. We practice the philosophy of honesty and report periodically to the Board of Directors. We develop “Work Rules” and ask employees to comply with related laws and regulations and internal regulations. Employees shall report extraordinary events to their supervisor truthfully. In 2013, we have begun to draft “Employee Code of Conduct” and will require all employees to comply with the work ethic specifications in 2014. To prevent improper financial dealings, all employees are required to abide by “Regulations for the Management of Gifts” when perform job duties. Our procurement staff are required to adhere to “Code of Conduct for Procurement Personnel”, requiring the procurement staff abide by the moral and ethical norms in accordance with the law and the company's procurement procedures. Personal Information Security We drafted “Personal Information Management Practice” because we value the information management and security of our tenants, customers, and stakeholders. When an employee conducts business transactions, we ask them to collect, handle and use personal information in accordance with the regulations. Before the collection of personal information, we follow personal information protection law by informing the parties regarding the purpose of the collection, the period of usage and their rights. In 2013, we have not received any customer complaints regarding customer privacy breaches or loss of customer information. For the effective implementation of the personal information protection policy, each department appoints a staff in charge to perform personal information backup, management, and audit. The risk level of a file is categorized as high, medium or low. Based on the risk rating, a regular audit regarding the implementation of the personal information management will be carried out. We have set up a Personal Information Steering Committee, made up of different departments, to check, supervise and coordinate the personal information management. The company's legal department is responsible for checking the personal information management of suppliers and outsourced vendors. The personal information management system went live on July, 2013. At the same time, “TFCC Personal Information Management” was established to ensure implementation of the personal information protection law. We will continue to promote personal information awareness and provide training courses, allowing employees to better understand the basic concept of personal information and its importance. Personal information management is an important part of corporate governance. We expect to introduce personal information protection standards BS 10012, with staged verification, to prove that TAIPEI 101 has enforced strict personal information management. We plan to follow up with related education and training regarding corporate social responsibility. We intend to advocate the company's corporate social responsibility code of conduct to employees and invite the Chairman and Chief Executive Office to discuss the corporate culture and values in person. We hope the discussion will enhance employees’ professional morals and work ethics. 1.13 2013 personal information protection awareness training 16 Safety Risk and Response Man-made Disasters and Emergency Rescue TAIPEI 101 is one of the most important office buildings and tourist attractions in Taiwan. Over ten thousand people come inside the building every day. Therefore, the safety of employees, tenants and customers have always been our number one priority. To avoid casualties caused by manmade disasters or any emergency situations or death, we take precautions and contingency procedures. We also enhance our crew’s safety knowledge and sense of crisis on an ongoing basis. Fire The building has an advanced fire-detection and firefighting system. Each floor is equipped with fire hydrants and fire extinguishers, which are subject to regular inspection and maintenance. For the building’s interior decoration materials, the tenant handbook contains detailed specifications. Tenants are required to use fireresistant materials in line with the main structure of the building and renovated common areas. Firewalls, smoke gate and fire compartment materials all help to separate the floor into several fire compartments and can prevent the fire from spreading, adding time for evacuation. Considering the height of the building and the number of people during business hours, we provide one hour of training of fire prevention and evacuation to the new tenants of the office tower so tenants' employees are familiar with disaster prevention measures and equipment that will minimize the loss. A total of 16 related education and training sessions were held in 2013 with 480 people attending. TAIPEI 101 is equipped with addressable detectors throughout building and continuously takes air samples to detect any unusual smoke. CCTV cameras in the office tower are also used for monitoring. The basement and mechanical floors are equipped with water tanks and can be used for the automatic sprinkler system throughout the building. The mechanical floor water tank is driven by gravity so that power failure does not interrupt water supply. The parking lot uses foam fire extinguishing system. Transformer and power generator rooms are protected by CO2 and FM -200 gases. The office floors and evacuation routes are equipped with smoke exhaust system. 1.14 Fire drill in TAIPEI 101 ◆◆ ◆◆ ◆◆ ◆◆ ◆◆ Pressurized corridors on two sides of each floor and pressurized staircases provide safe emergency evacuation routes. Two fireproof refuge rooms on each mechanical floor on every 8 levels, which are connected by an outdoor balcony, except for the refuge rooms on the 34th. The refuge rooms are equipped with CCTV monitor, emergency phone, water and emergency kits. Office floors and main evacuation routes are protected by smoke exhaust system. Fireman’s lifts provide access from the basement level to every floor. To shorten the response time during the emergency and strengthen the division of duties during a disaster, in addition to our twice a year fire drills, we request each self-defense team to take part in special training courses related to their group function at least once a year, in addition to two fire safety training courses. 1.15 Training courses regarding office tower and shopping mall fire education Our disaster prevention manual details the standard procedures when a fire is detected. We request tenants of office tower and shopping mall to form self-defense teams. Each team is responsible respectively for reporting, putting out fires, and directing evacuation. Every year, we have two fire drills for our tenants and their employees. 17 Emergency and injury treatments TAIPEI 101 Tower, Mall and Observatory are public areas. With a large crowd, the chance for an accident to occur is fairly high. Therefore, the company cooperates with the adjacent Taipei Medical University Hospital to provide an emergency medical treatment mechanism when an accident occurs. The company will inform the hospital to send out an ambulance at the same time when sending the qualified first aid personnel for assistance. We also transport the patient using the emergency elevator and have a dedicated staff to direct the ambulance and the medical team. We have also installed an Automated External Defibrillator (AED) in the below mentioned floors. There were 8 new locations with AED installation during 2013. So far, there are a total of 10 AED spread out in the office tower, shopping mall and the observatory. 1.16 AED installation locations 1.17 Number of Employees with Qualified Emergency Certificate 18 1.18 Number of Personnel with Emergency Training 1.19 2013 Emergency Related Cases and Counts 1.20 Serious medical case Health and safety of outsourced venders’ employees: Construction accident To avoid accident or fire due to the construction work initiated by the tenants of the office tower and shopping mall, the company drafted a “Green Fit-out Handbook” which stipulates work safety rules. The contractor is required to abide by related labor safety rules and tenants are required to purchase insurance policies. The policy helps to reduce the loss of property and ensures the injured receives proper compensation. In 2013, we didn’t have any injury or casualty caused by construction-related accidents. In order to reduce the damage caused by earthquake, our tenant manual covers precautions when an earthquake strikes. We also suggest that the tenant should prepare emergency supplies, including medical supplies, food and water, to cope with natural disasters which may last a long time. Besides the usual appropriate precautionary measures, we also assign a task force to patrol the building and carry out restoration work after a disaster occurs. If a strong earthquake renders the tower with safety concern, the Disaster Response Commander will instruct an evacuation order and the TAIPEI 101emergency response units will evacuate all the people in the building. Dangerous chemical cleaning products: We requested cleaning contractors to organize and store cleaning chemicals in the proper manner. The cleaning products should be placed in secured area to avoid unauthorized distribution and abuse. Also, each chemical must be labeled with the correct Material Safety Data Sheet (MSDS) to ensure prompt procedures be taken when an accident occurs. Natural Disaster Risk Management Taiwan is situated in a typhoon and earthquake zone. During TAIPEI 101’s planning stage, seismic and wind-resistance factors were already built into the building’s structural design. In recent years, due to the global climate change, frequent and extreme weather has caused enormous casualty and economic loss. Therefore, we have to adapt ourselves to the changes in climate. When typhoon and earthquake hit, the staff of TAIPEI 101 are asked to respond based on the Disaster Prevention and Response Manual. The office tower and shopping mall also have applicable disaster prevention and response procedures. As soon as a typhoon warning is issued by the Central We a t h e r B u r e a u , t h e Ty p h o o n R e s p o n s e Te a m i s immediately set up. Under strong wind force, TAIPEI 101 building starts swaying, which affects the elevator steel cables. To avoid cables hitting the lift shaft or tangling, safety mechanism came into play and automatically shut down the elevator. We have drafted “Office Tower Wind Control and Elevator Operation Response Procedures” to control elevator operation under different wind intensity and to reduce operational impact. The specification for seismic response can also be found in the “Office Tower Earthquake Response”, which states emergency measures to be taken when an earthquake strikes. Electrical equipment will be checked after an earthquake based on the “Earthquake Handling Procedures for Engineering Operation Management Dept.”. 1.21 The TAIPEI 101 Tower - Wind Damper Security Measures In addition to disaster prevention and response measures, we also have solid security systems to maintain the order of the building’s operation, security and safety. The Central Control Room staff is highly-trained and monitor all public area around the clock. The TAIPEI 101 Tower and Mall are equipped with 770 sets of most advanced electronic security CCTV camera. We have updated a total of 217 sets of cameras in 2013, and plan to replace the rest of cameras with higher resolution and add 73 sets of cameras in 2014. The tower is equipped with access control system in the main lobby, inside the elevators and controlled area. Only tenants with an ID card can enter the lift lobby. Visitors may contact tenants directly through the Visitor Access Kiosk System in the lobby to receive a visitor access card. On a weekly basis, we also perform anti-pinhole detection on all public toilets and breast feeding room in the shopping mall. Any detection will be reported and resolved immediately to protect customer privacy. In 2013, the building did not have a security breach. However, on August 2013, a mentally ill woman attacked a food court staff. We sent security to the site and reported to the police immediately. 19 1.22 The Visitor Access Kiosk 1.23 The Central Control Room - Energy Management and Control System Operation Impact and Response Regarding Infectious Diseases 20 TAIPEI 101 Tower is a closed environment. Therefore, we pay special attention to the quality of the indoor environment, particularly ventilation. We have installed carbon dioxide detectors in all the return air duct of the air conditioning system. Carbon dioxide concentration is monitored in real time, and filtered outside fresh air is brought in and directed to the desired area any time. Certain diseases, for example, the novel influenza virus H1N1, spread primarily through the droplet and contact infection and it became a challenge to inhibit the spread of the epidemic in the indoor environment. To ensure everyone’s health and to avoid interruption to operation caused by diseases, we developed the “H1N1 Flu Epidemic Prevention Procedures.” The Epidemic Prevention Command Center was established to prevent and respond to the diseases. Our CEO serves as Commanding Officer, Security Director serves as Executive Officer and each department assigns related personnel to serve as an Epidemic Prevention and Promotion Team. The Command Center will conduct meetings based on the status of the outbreak, discuss epidemic prevention plans, and provide up-to-date information to the office tower and shopping mall Epidemic Prevention Command Post. The Command Posts are in charge of epidemic prevention supervision of tenants and suppliers and implement security measures and contingency plans. 1.24 Organization Chart of TFCC Epidemic Prevention Team Stakeholders and Material Issues We have clear communication channels with stakeholders. We value their opinions and rights. Through the understanding of major issues that concern our stakeholders, we make sure the matters are adequately responded to through orchestrated strategic plans to minimize the operational impact. We also respond to stakeholders' expectations and requests through this report or other related actions. Stakeholder Identification and Communication TAIPEI 101 has a vast and diverse list of stakeholders. Therefore, we need to have a systematic method to identify major stakeholders. We called a meeting of all departments and evaluated stakeholders, according to the AA1000 Stakeholder Engagement Standard, in five aspects: dependency, influence, tension, responsibility and diverse perspective. We have filtered eight categories of major stakeholders. We have various communication channels with different stakeholders. Stakeholders can actively or passively leave comments and requests to us, and we respond to them through respective channels. 1.25 The communication channels and frequency with stakeholders 21 Material Issues Identification Besides identifying major stakeholders, we also need to understand the material issues that concern stakeholders and the impact on the company’s operations. Therefore, we identify material issues by referencing AA1000 Accountability Principles Standard and Global Reporting Initiative (GRI) regarding report disclosure and materiality consideration. We evaluated the impact of the issues on stakeholders as well as on economy, environment and society and drew up a materiality matrix to identify twelve material issues. Also, we use the matrix to determine the main contents of the report as well as the responses of material issues in the report. 1.27 Material issues and corresponding chapters in the report 1.26 Materiality Matrix Material issues identification indicates issues that stakeholders are most concerned with and with the most economic, social and environmental impacts are: corporate governance, operating performance, customer service and quality and public benefit events. We will provide management policies and performance regarding those material issues. 22 Chapter 2 Harmonious Relationship 23 Service High-Quality Tenants Not only a well-known landmark in Taiwan but also a symbol of high fashion, TAIPEI 101, with it numerous advantages, has become the operating location for many multinational businesses and internationally renowned brands. We must not be complacent about this and we are continuing our efforts to improve the quality of our services. With professional quality services to meet the diverse and varied needs of tenants, they can focus on their business development. We organize a variety of activities to enhance the relationship with our tenants. Grade A Service Tenants in TAIPEI 101 Tower and Mall are mostly brands well known internationally and nationally. To provide a strong foundation and stable development for major companies in Taiwan, we provide meticulous services as the strongest backing for tenants in order to jointly promote the development of economic prosperity. 2.1 2.2 24 Office Tenants by Nationality Office Tenant by Industry The initial conception of TAIPEI 101 was to build an Asia Pacific Financial Center, it was eventually replaced with a mixed-use development project including premium offices, a shopping mall and an observatory. Because of this, we are able to provide world-class infrastructure and management to the tenants of the office tower and the shopping mall. We set up a Service Center on the 35F to provide direct contact window for all services and enquiry including property management, public area cleaning and so on. Mail Service is on B2 level for postal services, parcel delivery service. In addition, in order to handle effectively the maintenance and security issues or any needs of tenants, we have a 24-hour repair, emergency hotline service and an online work order system to ensure that the electricity, air conditioning, elevators and environmental, safety aspects are taken care of promptly and efficiently. For the shopping mall, there are the “Shopping mall management rules” and “Shopping mall F & B tenant management rules”, of which TAIPEI 101 is responsible for the maintenance of the common areas, including the cleanness of the parking lot, the stairs, and the elevators, and the security of the shopping mall’s operation. We have also set up training classrooms and lounges for retail staff on the third floor, which serve as a space for employees’ training and as a rest lounge for retail staff. In addition to the commitment to our international corporate tenants, we also take into account their important visitors, and we have set up an information desk in the lobby on the ground floor of the building, where professional reception staff greet visitors on first sight, so that the distinguished guests arriving in TAIPEI 101 will feel respected and valued. TAIPEI 101 Tower has three observatory restaurants with amazing view, an international conference center and various amenities on 35F. The shopping mall has a bright, spacious, and high-ceilinged indoor piazza. These venues are available for tenants to utilize to entertain guests or organize events, and the stylish and elegant environment would bring extra value of corporate image to the business activities of the tenants. Tenant Events TAIPEI 101 has hosted a number of seminars and luncheons with various themes, and has also helped tenants organize events, which not only promote exchanges among tenants, but also shapes a corporate culture that is both harmonious and interactive. The events that we organized in 2013 for the tenants in the office building and the shopping mall are as follows: Cultural Seminar – About Flamenco In October 2013, we worked with NTCH to organize the “About Flamenco” speech, and invited Lin Geng, head of Taiwan’s first professional flamenco dance company to explain to TAIPEI 101’s tenants the history and significance of the song, music and dance of Flamenco, personally demonstrated the dance by some experts and led tenants’ employees to do some simple dance moves together, in order to let them better understand the essence of the Flamenco dance. 2.3 About Flamenco Joint Event with Bayer – Environmental Protection Event In December 2013, tenant Bayer hosted an environmental protection event, which was mainly about the promotion of environmental protection concept. As we ourselves have spared no effort in environmental protection, we provided free venue in support of Bayer’s commitment to environmental protection. 2.4 Bayer’s Environmental Protection Event Cocktail Reception for TAIPEI 101 Tenants In March 2013, we organized two spring gathering for our tenants, and invited to the event financial industry tenants, service industry tenants, Mainland Chinese tenants and the executives of the major tenants of TAIPEI 101 to the 101F of the building. We offered three-star Michelin cuisine, with Miss Chamber music group performance, and presented each of the tenants with a small gift after the event to thank them for their support of TAIPEI 101. Through this event, the Executives of TAIPEI 101’s tenants enhanced fellowship among them and business opportunity could be nurtured. 2.5 Cocktail Reception for TAIPEI 101 Tenants 25 Cocktail Reception for Diplomats in Taiwan In May 2013, we invited diplomats in Taiwan and senior executives of the Ministry of Foreign Affairs to the 101F of TAIPEI 101 to enjoy premium meals and fine wine together with the Executives of TAIPEI 101, hoping to promote mutual understanding through the event, and to increase Taiwanbased diplomats’ recognition of the quality of the service in TAIPEI 101, and to increase opportunities for future cooperation. 2.6 Cocktail Reception for TAIPEI 101 Tenants 2013 Christmas Party - “A Dazzling Decade with Unlimited Inspiration Christmas Party” During the festive season of Christmas in 2013, we organized the event “A Dazzling Decade with Unlimited Inspiration Christmas party”, in which we had the Christmas tree light-up ceremony, band performance, dance performance, famous singers performance, and a lucky draw to thank the tenants for another year of great support to us. 2.7 Christmas Party – Lucky Draw Winners 2.9 2.8 26 A Dazzling Decade with Unlimited Inspiration Christmas Party Expenses of Tenant Events Tenant Satisfaction Survey We conduct tenant satisfaction survey regularly each year to gauge our tenants’ satisfaction towards our services, events, cleanness, and facilities. In addition, we have set up a Tenant Service Center especially for our tenants, providing a window of direct communication with them, and they can also give us feedback through the official website or by e-mail. Our company’s management staff also holds occasional meetings with the management staff of all tenants in the office tower and the shopping mall to understand the area that needs improvement and to listen to the views of our tenants so to improve the quality of our service. We conduct two office tower tenants’ satisfaction surveys in a year to help us understand the satisfaction level of our tenants towards our staffs’ attitude, cleanness, facility of the building, and the events we host. The top three satisfactory items in 2013 were the cleanness of the lobby, fire safety equipment, and the attitude of the service counter personnel in the lobby. The items they were less satisfied about were the transformer maintenance staff, the fire safety equipment inspection staff, and the air conditioning equipment. 2.12 TAIPEI 101 International Conference Center - Boardroom 2.13 TAIPEI 101 International Conference Center Maintenance of transformer and inspection of fire equipment are mostly performed during the evening. As there was limited number of maintenance staff, the tenants’ employees wasn’t sure how long they need to wait in their office which resulted as a low satisfaction item. In response to this, we will arrange more staff to do the work next year. We have in place a smart Energy Management and Control System (EMCS), which can monitor the air conditioning systems and maintain the indoor temperature at a comfortable range. However, the number of tenants’ employees per floor differs, and they all have different perceptions of temperatures, thus resulting in some dissatisfaction with the air-conditioning temperature. On the dissatisfactory items, we will continue to make improvement measures to address these issues. 2.10 2013 The Three Most Satisfactory Service Categories 2.11 2013 The Three Dissatisfactory Service Categories 27 Looking After Our Employees We deeply feel that our employees, through their dedication and hard work, have laid the cornerstone for our success and for the possibility of sustainable development. We adhere to a people-oriented philosophy, and consider each employee a part of our family, looking after and protecting their rights, providing generous benefits and career development and cultivating core employee talents. Thus, we are able to improve our employees’ satisfaction on work, build staff consensus, and enhance our employees’ sense of identity, thereby establishing a harmonious working environment and work together to strengthen corporate competitiveness. Staff Profile Employment Conditions As of the end of 2013, our company had 294 full-time employees, of which all were permanent employees, with an average age of 35.5 and an average length of service of 4.7 years. The proportion of men and women were 40% and 60%, which included nine executives, 13 mid-level managers, 34 temporary employees, and the temporary employees were hired as temporary support for the relief of heavier workloads for certain departments on special occasions. We provide lunch and rest time for the temporary staff, complying with the rights stated in the provisions of Labor Standards Act, with 37.5 hour work per week, and the hourly rate is better than that of the Labor Standards Act. 2.16 Number of mid-level managers by gender and age 2.17 Average age, years of service and level of education of all staff Recruiting 2.14 Proportions and numbers of all staff by gender and age 2.15 Number of executives by gender and age 28 5. Number of employees includes full-time and part-time employees. 6. Number of employees includes full-time and part-time employees. The appointment of staff upholds the principle of talent and local talent as a priority. To meet the needs of observatory operation, we hired a Japanese national to work as a customer service staff in 2013. Meanwhile, we prohibit any form of discrimination in our workplace, including race, age, colour, gender or religion. In addition to that, we follow the current national laws on staff hiring, including Labour Standards Act, Employment Service Act and Act of Gender Equality in Employment, etc., to promote gender equality and ensure that the hiring, appointment, compensation, performance management, and career development is governed with fair treatment, and our company also prohibits child labour, forced labour, and other violations of human rights. In 2013, a total of 63 employees resigned with a turnover rate of 2.79%. While of the 67 new employees hired, 78% were female. In order to protect and promote the rights of the physically and mentally disabled and aboriginals, we hired a certain percentage of people with physical disabilities, and as of the end of 2013 there were a total of two disabled and five aboriginal employees. If operation requires, organizational adjustments would be made, such as changes in departments, place of work and duties, we would inform employees in advance within the stipulated period in accordance with the Labor Standards Act. The adjustments are carried out only after obtaining the consent of the employees. 2.18 Number of new employees by gender and age The company has joined the North Taiwan Department Store Personnel Association, meeting executives from Human Resources Departments of the same trade every two months regularly to discuss related issues on the operation of HR functions such as staff salaries, benefits, training personnel, thereby improving or enhancing the existing employee management rules and regulations. Sexual Harassment Prevention 2.19 Number of the resigned employees by gender and age Employee Relations and Rights Labor and Management Relations As the total number of employees in our company has not reached 300, we are not required to establish labor unions. However, we value the views of our employee, providing different communication and complaint channels to promote a positive and harmonious relationship between employers and employees, and create a healthier and safer working environment. We established a labor safety committee, which meets regularly to discuss issues related to safety and health, wherein the proportion of labor representatives is three tenths. We also focus on the related issues of labor and management consultation and of labor rights, so we have planned a labor and management meeting system, and it is expected to become operational in the second half of 2014. In addition, we have established channels such as employee suggestion box, monthly staff meetings, and regular division and department meetings, providing employees with clear channels to communicate with executives. In 2013, we had one human right related complaint. The number of female employees in the company is more than that of male employees. To provide female employee a working environment without the fear of sexual harassment, we have developed “Employee Sexual Harassment Prevention Measures”, under which a sexual harassment complaint hotline and mailbox has been set up. Also the “Sexual Harassment Complaints Evaluation Committee” is responsible for processing the relevant cases. Occupational Health and Employee Health Pursuant to relevant laws and regulations on occupational safety and health, the company developed Health and Safety Codes of Conduct, Occupational Safety and Health Committee Charter, Labor Safety and Health Inspection Regulations, Labor Safety and Health Self Inspection Measures, and Fire Safety Supervision Measures, etc. A Labor Safety Committee composed of staff from each operating department was established. A dedicated department is responsible for inspecting, promoting, guiding and implementing health and safety policies. In addition to providing employees with a safe and healthy working environment, TAIPEI 101 also regularly hold employee physical examination, as well as organizes training advocating environmental health and safety related issues. We comply with the provisions o f t h e L a b o r S a fe t y a n d Health Act, and have not had any major occupational hazard or significant labor disputes within the last three years, thus were awarded Health Promotion Medal of the Healthy Workplace Certification by the Health Promotion Bureau, Health Administration, Executive Yuan in 2013. An employee complaint in 2013 Employee working regulation originally stipulates that employees who work overtime may apply for compensatory leave, in order for employees to have sufficient time to rest. As some of our employees requested that the company should also provide overtime pay as an option, the company agreed to modify our overtime rules, so that employees who work overtime could select between compensatory leave or overtime pay. 2.20 Health Promotion Medal of Healthy Workplace Certification 29 Since the beginning of the operation, TAIPEI 101 has banned smoking in the whole complex. And after the formal implementation of the Tobacco Hazards Prevention Act, smoking was even more strictly prohibited anywhere in the complex. But for the smoking tenants’ employees and visitors, we designate smoking areas near the tower entrance of Songzhi Road and Xinyi Road in accordance with the regulations. For shopping mall customers, designated smoking areas are in the Water Dance Square and Xinyi Square. Back-up Service Satisfaction Survey We value the quality of internal back-up service. An annual satisfaction survey is conducted to collect the views within the company regarding the services provided (financial, IT, legal and general affairs departments), and the survey would serve as the basis for improvement in the future. In 2013, the back-up service obtained a high satisfaction rating. In the future, we will continue to improve to exceed employees’ expectations. Human Res ources Management Remunerations and Rewards 2.21 Injury rate, occupational disease rate, number of days lost rate, absentee rate Retirement System and the Implementation Status We comply with the relevant provisions of the Labor Standards Act, where 2% of the employees’ monthly salary is set aside into a government pension fund reserve account. Since 2005, the company sets aside Pension Fund equal to 6% of the monthly salary of each employee who selects retirement plan specified in the “Labor Pension Act” to the individual retirement account of the Bureau of Labor Insurance. Providing a competitive and complete salary structure is the key to attracting and retaining talent. The company's overall remunerations include salary, position allowance, duty allowance, special duty allowance, meal allowance, bonus and so on. The average salary of employee is 155% higher than the national minimum wage. In 2013, the average salary of male employee was higher than the national minimum wage by 195%, the average salary of female employee was higher than the national minimum wage by 110%. As many of the female employees are customer service staff in the observatory and shopping mall, first line service staff, with lower salary base, therefore the average salary of female employee is lower. Parental Leave and Work Injury Leave Based on Gender Equality Act, employees are offered maternity leave at full pay for an accumulated 8 weeks before and after they give birth. We also offer 3 days of paternity leave at full pay for employees whose spouses give birth. In 2013, a total of 12 employees applied for maternity or paternity leave. Except for the two employees who started to take leave at the end of 2013 and are expected to return to work in early 2014, the other 10 have all returned to their original post. In 2013 five employees were injured due to occupational hazards. In accordance with the Labor Standards Law, the company has granted the injured employees work injury leave with full pay. All five employees have returned to their original post after recovery. 30 2.22 Table for 2013 Maternity Leave, Paternity Leave and Work Injury Leave 2.23 Table of the average salary of employees by gender To motivate staff morale and enthusiasm, we established a transparent and fair reward system. For employees who improve the company's reputation or guard against company losses, we reward them by position promotion, salary adjustment, extra points in annual evaluations, bonuses, and awards, which are detailed in the “Working Rules”. The company adopts core value of SPIRIT as the basis for the annual performance evaluation. One of the ratings is on the extent of all employees' practice of corporate social responsibility, such as the achievement in public benefit events and energy saving, environmental protection. We award the employees who perform well with bonus, and as such, employees are motivated to perform corporate core values at work. In 2013, a total of six employees received the Core Value Award. For employees with outstanding performance, we present the Significant Contribution Award in the monthly meetings to recognize their contribution. In 2013 a total of 11 employees received the Significant Contribution Award. 2.24 Employees receiving the Core Value Award 7. 8. 9. 10. Total hours of occupational injury leave in 2013/average number of people/total productive hours in 2013 Total hours of occupational disease leave in 2013/average number of people/total productive hours in 2013 Total hours of (work injury leave + occupational disease leave) in 2013/average number of people/ total productive hours in 2013 Total hours of (casual leave + sick leave + privilege leave) in 2013/average number of people/ total productive hours in 2013 31 Employee Benefits In addition to the basic benefits in accordance with the provisions of the law, the company also offers a variety of staff benefits. The main employee benefits in 2013 are: ◆◆ Cash rewards: Dragon Boat Festival and Mid-Autumn Festival bonus, marriage benefits, funeral grants, dividends, group insurance, employee child care subsidy, customer service staff’s allowance, and monthly meal allowance of NT$1,200. ◆◆ Company Outing: To reward employees’ efforts to achieve profit target, the company organized company outing to Japan, visiting attractions like Tokyo Meiji Shrine, SKYTREE, Disneyland, Ghibli Museum, Omotesando, Takeshita, Odaiba shopping mall and Hakone Lake Ashi cruise, Owakudani, Yamanaka Onsen, and Gotemba Premium Outlet. This trip not only foster family relationship, but also was a good learning experience for the staff. 2.25 Company Outing ◆◆ Leisure and Recreation: Employees are free to participate in three movie screenings; the Welfare Committee holds groupon activities related to food or clothing once a month; employees can purchase 4 observatory tickets with 30% discount, and vouchers for Xinyi Sports Center with 30% or more discount. ◆◆ Employee Family Day: In 2013, we held a year-end banquet in Dingxian Seafood Restaurant on the 86F in TAIPEI 101, in which the Welfare Committee prepared a number of prizes for lucky draw. The Welfare Committee offers funds for leisure clubs, including cycling club, badminton club, softball club, and yoga club. The company organized one day trip to restored ancient house Cheng Mei Hall in Yongjing, Changhua. Not only did it encourage fellowship among employees but a true cultural experience. 2.26 2013 Company Year-end Banquet 2.27 Employee Family Day – Cheng Mei Hall Day Trip 32 Human Resources Development Enhance the Core Competence of Employees TAIPEI 101 has an international reputation, and is bound to continue to strive for excellence, to meet the expectations and needs of stakeholders. In such a highly competitive industry, outstanding talent is the foundation on which TAIPEI 101 may achieve sustainable development. For this reason, we attach importance to employees’ professional competence and leadership skills, designed an educational training program with an emphasis orientated towards the needs of the individual’s job position, career development and the needs of the company's growth, hoping to enhance the core competence and competitiveness of employees, as well as strengthen efficiency and quality. In 2013, the core competence training courses for the general employees are as follows: We have required that the customer service staff in the shopping mall obtain basic language skill in English and Japanese. And service personnel working in the observatory need to receive people from all over the world on a daily basis, in particular a total of 299,000 Japanese tourists visited the observatory in 2013. Therefore, we specifically provided language courses in Japanese and other languages to strengthen employees' language ability, so that employees can further enhance their service competence in communicating with and handling foreign visitors. 2.29 Language training for observatory service personnel ◆◆ Training new employees The company formulated formal employee training and development policies, the contents of which are stated in the company's employee handbook. New employees are required to participate in the orientation training course to understand the company's core values, business philosophy, social responsibility and employee rights, thereby new employees could rapidly understand the company’s industry characteristics and fit in well, creating value for the company. Training courses are held monthly or quarterly according to the frequency of hiring; all data are updated when necessary to ensure that the training content is in line with most current situation. ◆◆ Management ability training To strengthen the expertise and leadership skills of personnel holding managerial positions, they are required to complete the managerial level development and training courses, and then complete all relevant training based on the company’s current strategic direction, so as to ensure that their work practices contribute to the company’s sustainable development, and they are competent in leading the staff to achieve performance goals of the company. 2.28 Core competence training courses for the general employees ◆◆ The 2013 managerial level educational training covers innovation ability and leadership skills, as explained below: 33 2.31 Management Ability Training:Staff Cultivating Ability 2.30 Management Ability Training 2.32 Management Ability Training:Innovation ability – process improvement and teamwork 34 ◆◆ Professional on-the-job training According to employees of each business unit, we plan and provide appropriate external educational training courses in accordance with the expertise and capacity required of the employees’ positions to enhance the employees’ functional competitiveness. 2.35 Retail Tenant Sale Staff course schedule Succession Plan In addition to actively enhancing the core competence of the staff, we have established a succession plan for the purpose of cultivating a group of elite reserve group with potential to develop, which is an effective preventive plan when the organization is faced with change. It is of positive benefit to the career development of outstanding employees, and also improves retention rate. 2.33 External training curriculum of each business unit The plan identifies first the internal key talents with high potential and is aimed at the necessary competences required for the key positions in three aspects, which are: knowledge, skill, and ability and from which generates the core competences required by each level. And then through a systematic course (learning from structure), experiential learning (learning from experience), and a model of learning (learning from others), filling the capability gaps of successors and developing successors’ potential in depth. Succession candidates’ personal development plans are under regular evaluation so as to track the status of the succession plan. 2.34 2013 Internal and external training hours by gender and management level ◆◆ Improve service standard of retail tenant sale staff Although retail tenant sale staff in the shopping mall are not employees hired by us, they are, however, an important medium to convey TAIPEI 101’s brand image to customers. In order to provide all customers with the experience of professional privileged services, we have developed “Shopping Mall Management Rules,” “Shopping Mall F & B Tenant Management Rules” and “Retail Tenant Personnel Education Manual” to regulate the service and conduct of the sale staff. Every day prior to opening we have 15 minutes briefing with the sale staff, and we also design courses for them, so as to enhance their sales ability and convey the shopping mall image. We invited experts to instruct courses on service skills and green initiatives to the sales staff in 2013, in anticipation that their service quality will be enhanced and the environmental image of TAIPEI 101 can be publicized to the customers, which will further the good relationship with customers, and strengthen brand image and loyalty. 2.36 Process of succession plan Internal Rotation System The company has developed a job rotation system, which adopts the exchange model. The Human Resources Department is responsible for coordinating the rotation departments and the qualification assessment. The employees who apply for job rotation must be qualified in annual performance appraisal, and their professional ability must be approved by their supervisors. Internal job rotation helps strengthen employees’ ability in different areas, increase the breadth and depth of employees’ vocational ability, and thus increase the chances of being promoted. In preparing for changes in organizational strategy, this system could help to appropriately adjust staffing to increase company productivity and competitiveness and create greater value for the company. 35 Meeting Customer Needs We treat every customer and tourist that visit TAIPEI 101 as VIPs. In order to make them feel at home, the shopping mall and the observatory are dedicated to providing services of international standards, and are continuing in the improvement of our hardware and circulation routes to provide our customers a unique shopping and sightseeing experience. With our keen insight and our spirit of innovation, we want to continue improving the quality of our service to exceed the expectations of our customers. Joyful Shopping Experience Shopping Mall Renovation The Xinyi District is the primary retail area in Taipei, and has a cluster effect attracting many international fashion brands to set up shops here. TAIPEI 101 Mall, as the Asian-Pacific fashion landmark, has world-class interior space planning and is favored by selective international brands as the location to establish their stores in Taiwan. In response to the crossstrait tourist policy and the impending opening of the Xinyi MRT line, we have anticipated a dramatic increase of customers, which would affect the 2.37 Taipei City Government circulation at the shopping Accessible Restaurant Mark mall. In order to allow more smooth circulation that helps consumer consumption and to create a comfortable shopping experience, we have especially re-planned the space of our 4F and 5F and that of our food court. Our efforts received recognition by the Taipei City Government, and we were awarded with the Taipei Accessible Restaurant (handicap friendly) Mark in June, 2013. In addition, we adjusted the tenant mix at the lower levels to cater more to the younger customer. We will expand our food and beverage service in the future, adding a high-end afternoon tea shop and an Italian restaurant, providing customers with even more F & B choices. Making Smart Shopping Mall In response to “smart shopping” global trends, TAIPEI 101, working with the Institute for Information Industry and UDN Digital under the guidance of the Ministry of Economic Affairs, built the Xinyi District Smart Shopping services and launched the “Smart 101 Shopping Fun”, which offered personalized high-tech services for customers. 36 2.38 Descriptions of three smart ways to shop To further enhance service quality, we carried out a comprehensive review of the existing operation of facilities and proposed future improvement plans, such as enhancing wi-fi network, a new license plate recognition system and food court calling system, in order to accelerate the realization of the construction of an smart environment, and hoping to showcase TAIPEI 101 as the window on Taiwan’s ability in science and technology. Taipei Shopping Feast 101% Attentive Service To allow customers to experience new fun of shopping, TAIPEI 101 Mall participated jointly with eight department stores in the “Taipei Shopping Feast” organized by the City’s Department of Business for the first time in 2013, and with “classic fashion” as the theme, we dished out a number of great gifts and increased the consumer crowds. Furthermore, to promote the development of Xinyi business district, TAIPEI 101 Mall provided a venue for placing event logo, co-organized the Audi Fashion Show, as well as promoting the events in direct mails and on display screens. Through extensive publicity and the healthy competition and cooperation with other department stores, during the event period of the 2013 Taipei Shopping Feast, the number of participants reached up to 120,000, which contributed to the total consumption value of NT$ one billion. In the future, TAIPEI 101 will continue to participate in relevant activities to promote domestic consumption. We understand our customers’ needs and feelings, and we provide numerous basic services, such as shopping guides, foreign language translation, tax refund and we also create customized services for each and every customer. For example, we use a golf cart to help customers find parking lot, and as of the end of 2013, a total of 810 customers have utilized our car seeking assistance. In response to the festive seasons, we create different shopping atmospheres, providing completely different ambience for customers every time they come shopping at TAIPEI 101. At Christmas 2013, we put up a stage in the style of a Nordic forest at the 4F City Square of TAIPEI 101 Mall, and organized a series of choirs, pianists, orchestras and gospel singers to perform Christmas songs and Taiwanese folk songs, providing customers with beautiful music and melodious singing while shopping. 2.39 TAIPEI 101’s Gifts and Raffle in Taipei Shopping Festival 2013 Shopping Mall Fine Incident According to the “Fair Trade Commission’s principles of managing promotional prize or giveaway”, when company organizes promotional prize or giveaway, the maximum amount must not exceed 120 times of the monthly basic salary announced by the CLA. At the Glamour 101 Raffle organized during September 12 to October 7 in 2012, TAIPEI 101 offered, as the biggest prize, an Audi A6 Hybrid, which was worthy of NT$ 2.89 million. Because the value of the prize had exceeded the maximum prize value set by the FTC, TAIPEI 101 was fined for NT$ 100,000. Because before organizing the anniversary sales promotion, we chose to use the as yet available, no price tag new Audi A6 hybrid as the prize. Further, due to the slow economy in 2012, the company wished to stimulate sales, but did not count on using the big prize as a way to lure consumption. We paid the fine as requested, and had taken measures to prevent such from happening again. Therefore in 2013 as we celebrate out tenth anniversary, TAIPEI 101 Mall cooperated again with Audi for lucky draw, had confirmed the value of the prize to be NT1.41 million, which not only in compliance with the law but also achieving the goal of the event. 2.40 2013 Christmas Music Performance Event Details 37 Responses to Major Events at the Shopping Mall To protect the rights of our consumers, the company has strict norms regarding our tenants’ conduct of business, such as product labelling and food safety; also, as soon as we learn about major events about our tenants or irregular misdeeds, we respond immediately, minimizing risks, protecting the corporate image, and hold responsibility to those involved. In 2013, major events related to the shopping mall and our response measures were as follows: In 2013 the Taipei City Parking Management and Development Office fined us NT$ 3,000, due to the fact that we had redrawn idle motorcycle parking lots to create VIP parking area. Afterwards, we immediately restored the area as motorcycle parking lots. In 2013, there was an outbreak of food safety problem in Taiwan, namely that of maleic acid being found in tapioca pearls. Of those involved, one of them was TAIPEI 101s’ food court tenant, Little Southern Gate. In consideration of our customer’s health, we demanded that Little Southern Gate take all of their products off the shelf until they were certain that their products were within food safety standards and had a certificate to prove it, in order to ease customers concerns. In April, 2013, food court tenant Ji Guang Chicken was reported to have omitted entry of sales invoice, which was in violation of the terms of the lease contract, and was also a serious damage to TAIPEI 101’s reputation, so we requested that Ji Guang Chicken pay the amount of NT$ 50,000, 20 times that of the omitted invoice as a punitive penalty and required that the tenant punishes its employees. Our Response to Falun Gong Issue Because TAIPEI 101 is an important landmark, which is a must-visit attraction for Chinese tourists when they come to Taiwan, the religious group Falun Gong has stationed itself for a long time in the buildings’ surroundings, and there have also been scuffles between parties such as the Concentric Patriotism Association and the Communist Party, affecting the impression and image at the front of the shopping mall as well as the tranquillity of the surrounding residents and TAIPEI 101’s tenants. But because their people are beyond the property line of TAIPEI 101 and are on city sidewalk, we have no authority to maintain social order there, thus we can only hire security guards to minimize the impact inflicted upon us. 38 Exploring the Observatory Service Quality of the Observatory TAIPEI 101 Observatory is located 382 meters from the ground, providing 360-degree views overlooking the scenery of Greater Taipei, attracting many tourists to come here to explore. To meet the requirements and expectations of the many tourists who come visiting and to maintain our high quality of service has always been our commitment and purpose. In response to the increasing number of tourists, we have deployed other elevators in the building to assist with transporting tour groups to and from observatory besides the dedicated shuttle elevators, and set up an additional entrance for tour groups at B1 level to divert the flow of tourists and to reduce impatience from individual tourists for long waiting time. Also, to maintain the quality of the environment, we renovated the ceiling of the entrance at B1 level by installing sound-absorbing panels and using natural open sound absorption in some areas to reduce the noise generated by a large number of tourists, and so as not to affect the other customers’ shopping and sightseeing experiences. In the future, we plan to sell “Fast Pass” ticket at 5F to service visitors who has no time to wait in line. In 2013, we added Caring seats at the entrance and in the observatory, two wheelchairs at B1 and 88F service desk were added, a total of five wheelchairs are prepared at the observatory to help the elder and the handicapped while waiting or touring. Meanwhile, to encourage family visiting, we offer local citizens discounted tickets on family related holidays, such as Children’s Day, Mother’s Day, Father’s Day, and the Chung Yang Day, so they can come to the observatory and find their homes from a different viewpoint and to enjoy their time together as a family. 2.41 The Caring Seats at B1F Entrance 2013 Sky Wedding Photo Show TAIPEI 101 Observatory provided services for newlywed couples for the first time ever in 2013, at which couples could take wedding photos at the observatory and they only need to buy regular tickets. This blends the romantic atmosphere with beautiful Taipei basin, leaving touching and unique memory. Also, the Observatory featured Taiwanese, Hakka, and aboriginal wedding decorations, not only creating different styles of photography, but also offering tourists with an opportunity to experience the diversity of Taiwan’s wedding culture. 2.42 2013 Sky Wedding Photo Show Interaction with Tourists – “Pride of Taiwan” Wall Display We have continued to pursue innovation in our hardware equipment in order to provide more diversified services. In 2013, we updated the “Pride of Taiwan” wall display at 5F of the observatory entry area to an interactive multimedia touch-screen for tourists to operate on their own and to let them gain a better understanding of Taiwan’s talents and the remarkable accomplishments that Taiwan’s industry has achieved on the global stage, and added a “You are the next Pride of Taiwan” photo shoot and mailing functions, providing the opportunity to interact with tourists, and to deepen their impression of travelling in Taiwan. 2.43“Pride of Taiwan” Wall Display 39 Customer Complaint Mechanism TAIPEI 101 is equipped with personalized service hotlines, email and service centers for customers to express their views on the shopping mall and the quality of service of the observatory. For customer suggestions, customer complaints and others, there is the “Shopping Mall Customer Complaint Management Rules”, under which the customer service unit will receive and promptly notify the relevant departments in order to be able to deal with customer needs immediately. Furthermore, to enhance the quality of customer complaints handling, we imported the customer complaints system online in 2013, and plan to start using it in 2014. Customers can express their views by telephone, the official website and service counters, and through complete and standardized customer complaints handling processes, customer service personnel will, after receiving customer feedback, record customer complaints in a systematic way and inform the relevant units in charge; the unit in charge, in turn, will need to propose a concrete way of dealing with the problem within 3 days to improve the satisfaction of the customer. Customer service personnel analyze statistically and record both the customers’ reviews and the handling process during the period on a regular weekly basis, submit reports that serve as the basis of review and improvement plus education and training materials for other units. Every customer complaint case is tracked and processed regularly, which is then provided to each unit via email on a weekly basis, and thus showing the company's attention to the quality of customer service. In response to the increasing number of visitors, and in order to maintain the quality of our service, we listen to each customer, and respect all their views, and take their complaints to the relevant departments to be handled properly, while continuing to improve the quality of our service. Customer complaint cases which occurred at a high frequency in 2013 and the results of our responses to them, are as detailed below: 2.45 Shopping Mall Customer Complaint Cases Appreciation from an observatory visitor Mr. Xie from Kaohsiung called to tell us that he was so impressed when he visited the Observatory in the evening of October 19, 2013 about the service attitude of the customer service staff, and he was particularly impressed by the staff in the elevator. He called to offer his gratitude to the service staff and TAIPEI 101 Observatory for providing him with such good service. Customer Satisfaction Survey We conducted a satisfaction survey on customers of TAIPEI 101 Mall and Observatory, analyzed customers’ comments on goods, services, facilities, circulation provided by TAIPEI 101 to enhance the brand image, strengthen service quality and brand loyalty. And, based on our customer satisfaction survey results, we developed marketing strategies and formulated guidelines to enhance customer satisfaction. This year’s satisfaction survey methods are described below: ◆◆ General consumer satisfaction survey: with domestic and international customers as subjects, by way of questionnaire, we analyzed TAIPEI 101’s service quality, store image, customer satisfaction, customer loyalty and so on. The number of effective samples is 1,001 copies. 2.44 Observatory Customer Complaint Cases 40 ◆◆ Prestige Club member satisfaction survey: with Prestige Club member as subjects, by way of individual interviews and focus groups, a total of 32 guests were interviewed individually, and combined with the focus groups, we obtained views from 53 members in the end. ◆◆ Study on consumer circulation: with customers visiting the observatory and shopping mall as the subjects, and through use of accompanied recording that does not disturb the customers, we recorded and analyzed the pattern and behavior of the customers of the observatory and the general customers of the shopping mall. In total 276 effective items of data were collected. Overall, the survey analysis showed that the overall satisfaction of customers towards TAIPEI 101 is quite high. In regard to the service satisfaction, the three most satisfied items are, “the neatness of service personnel’s clothing and appearance”, “the professional competence of the service personnel”, and “the attitude and competence of the information desk personnel”; the item with the lowest satisfaction is “service personnel’s ability to solve customers’ complaints”. To meet the needs of diverse customer groups, TAIPEI 101 is developing improvement measures in the light of the items with the lower satisfaction to provide a more professional and distinct service quality. 2.47 TAIPEI 101 Prestige Club In customer surveys, we have received many customer complaints on the lack of a canopy between the exit of MRT Xinyi Line and the TAIPEI 101 Mall entrance, which results in customers having to be exposed to rain before getting indoors, causing a lot of inconvenience. We realized that this is an important issue that needs to be addressed, and prepared to install a roof shaped shelter, but due to the relevant government regulations on the GFA of the complex, the project could not proceed. To avoid affecting customers’ mood and quality of shopping, we will continue to communicate with the relevant government agencies, in the hope that the shelter will be allowed. 2.46 TAIPEI 101 Customer Service Center 41 Creating Value for Taiwan TAIPEI 101 was once the tallest building in the world. With a high reputation in the international community, it is not only a landmark of Taiwan, but also a representative of Taiwan. We set the goal to become the highest platform for cultural creativity and public interest, taking advantage of the high visibility of TAIPEI 101, we promote Taiwan's art and cultural creativity industries to the world, market Taiwan’s food culture, support charity care events, and care for disadvantaged groups in society. In addition to inducing selfless dedication, we also offer people real moving experiences and priceless surprises, creating new value for Taiwanese society and its image. 2.48 The value of public service events organized Let the World See Taiwan Promote Taiwan tourism -2013 TaiwanJapan Sightseeing Landmark Friendship Year Based on the friendly relations between Japan and Taiwan, the Tourism Bureau and the Japan Tourism Agency jointly promoted TAIPEI 101 Observatory and Tokyo Sky Tree’s working together to promote the “2013 TaiwanJapan Sightseeing Landmarks Friendship Year” to bring Taiwan-Japan relations closer, and open up a new tourism atmosphere in Taiwan and Japan, thus contributing to economic development. Through the large-scale activities and a variety of events jointly organized by both towers, the amount of Taiwan and Japan visitors making mutual 42 visits was driven upwards. According to statistics, a total of 299,000 Japanese tourists visited the Observatory. TAIPEI 101 Observatory hired a Japanese employee responsible for Japanese tourist reception; the language friendliness allows Japanese tourists to fully enjoy the facilities of the Observatory and Taipei scenery. International VIP Visits TAIPEI 101 is the representative of the government’s international publicity. This is also why TAIPEI 101 regularly plays a role in Taiwan’s diplomatic affairs, receiving international dignitaries, and the promotion of Taiwan's beauty and local culture. In 2013, we coordinated with the government units in VIP visits and related activities, entertained a total of 1,427 visitors, which included President of the Republic of Nauru, Burkina Faso National Assembly Speaker, Vice President of the Republic of Gambia, etc. 2.49 2013 Taiwan-Japan Sightseeing Landmark Friendship Year Press Conference (second from the left: Tourism Bureau Director Hsieh Wei-jun; TAIPEI 101 Chairman Christina Sung; Tokyo Sky Tree President Michiaki Suzuki; Deputy Representative of the Japanese Interchange Association Sami Yusuke) The New Year's Eve Fireworks TAIPEI 101 collaborates with the Taipei City Government at the end of each year to host New Year's Eve fireworks event, which is also one of the most watched international New Year's Eve performances. Every year TAIPEI 101's fireworks display presents innovative performances different from the previous year, and thus it becomes the focus of international media broadcast, which allows Taiwan to appear on the international stage. In order to market Taiwan’s culture and creativity, for 2014 fireworks display, we invited Golden Melody Awards winner producer Wu Jin-Dai responsible for producing, the soundtrack genius Fan Zong-pei for music arrangement, and the Paiwan Children Chorus to sing their traditional songs, with which the music was used in the New Year's fireworks display. With the music accompanying the dazzling fireworks, it brought the world a distinctive visual and auditory experience, and through the international broadcast of the New Year's Eve fireworks, local Taiwanese culture and sound were transmitted to the whole world, which also manifested the support for indigenous people. According to the statistics of Foreign Ministry, a total of more than 40 countries, more than 150 television stations, websites and print medias published news in relation to the TAIPEI 101 Fireworks, the national and foreign media reports equivalent to a total value of more than one billion NTD. 2.50 The New Year's Eve Fireworks Affirmation by International Media The Effect of International Film Making TAIPEI 101 fulfills its corporate social responsibility not only in generating operating profit, but also in the enhancement of the international reputation of our country. In 2013 TAIPEI 101 was named “the 10 best cities for New Year’s Eve”, “25 of mankind’s greatest engineering achievements”, and “25 great landmarks in the world” by CNN; the world’s fastest elevator to the observatory was also selected as one of the “49 journeys that will change your life”. GreenBiz.com also named TAIPEI 101 Tower “one of the world's ten greenest offices”. French director Luc Besson came to Taipei to shoot his new movie “Lucy”, which included scenes of the landmark TAIPEI 101. The movie will be screened around the world. The Gold Award winner Taiwan director Chu Yu-ning’s new idol drama, “You Light Up My Planet” also included scenes of TAIPEI 101. This drama will be broadcasted in China, Japan, Korea, and Southeast Asia. By screening the films around the world, the beauty of TAIPEI 101 was publicized, allowing the world to see Taiwan. This is a great tourism promotion channel. 43 Flash Mob Chorus Venture Capitalist Li Zhen-Zhang, singer Li Jian-Fu and director Ma Yi-zhong jointly planned the “Surprise Chorus 101” flash music event in June 2013, anticipating that Taiwan’s beauty would be introduced to the world. The highly visible TAIPEI 101 sponsored the food court venue and costume, and 130 people gave unpaid performances of Taiwanese songs including Green Island Serenade, Jasmine, Spring Breeze, and Evergreen Mountains. After uploading the video on YouTube, in just two weeks, the Internet CTR surged over a million times. This ten-minute video allows the world to see Taiwan’s landmark, Taiwanese cuisine and music, and also brought an infinite moving experience and surprise to people. Flash mob chorus YouTube link https://www.youtube.com/ watch?v=bbqY1P6KJmI 2.51 Flash Mob Chorus 2.52 Flash Mob Chorus Spread Love and Care for the Community Blood Drive Day In response to “Donate blood to save life,” TAIPEI 101 has been organizing blood drive days together with the Taipei Blood Center since 2008. Shin Yeh restaurant in the building also sponsored free red bean soup, encouraging all tenants and staff to roll up their sleeves to show their care for the society. TAIPEI 101 held blood drive day in March and September 2013, and a total of 359 bags of 250cc blood bags were obtained. 44 2.53 Blood Drive Day International Run Up Race [Love Bazaar] Charitable Event Since 2005, TAIPEI 101 has been organizing the annual international run up races in order to promote sports and exercise. The theme of the 2013 TAIPEI 101 international run up race was “Courage make your dream come true”. A total of 3,542 people finished the race. To echo the theme of the climbing competition, we donated NT$100,000 from the runners’ entry fee deducting necessary expenses to the baseball team of Dong Yuan Elementary School of Taipei, which has won the World Junior Baseball Championship in the past, to promote and encourage students to engage in sports activities. TAIPEI 101 held a collaborative charitable event, [Love Bazaar], with the largest tenant of the office tower, the internationally renowned accounting firm, KPMG Taiwan, in June 2013, assembling 12 social welfare organizations to set up stands in the 1F lobby to sell their products, also invited were cellist Zhang Zheng-jie and pianist Xie Wan-ling to perform for the opening ceremony. This event attracted the enthusiastic support and purchases by both the public and the tenants of TAIPEI 101, and because of which, the total product sales of the welfare organizations were over NT$1,000,000, and NT$380,000 of which were donated together by the Chairman and CEO of TAIPEI 101 and the former director and founder of KPMG Taiwan to social welfare organizations, taking practical action to help improve the lives of disadvantaged children. 2.54 International Run Up Race 2.56[Love Bazaar] Charitable Event One Day Pay Donation for the Philippines 2.55 Donation to the Baseball Team of Dong Yuan Elementary School “Lisa LaLisa Loves Make-A-Wish Taiwan” Charity Sale To care for the critically ill children in Taiwan, artist Wang Li-ren launched a Dreams fund raising charity event in November 2013, with TAIPEI 101 providing City Square free of charge (Worth NT $ 1,324,000) as the exhibition and bidding venue to express support for the event. This event invited 101 artists and celebrities to paint on the FSC (Forest Stewardship Council) internationally certified paper bags, and 101 unique products were displayed in TAIPEI 101. The public could understand the design concept of each bag through physical display platform, tender a bid to purchase, and the final sale proceeds were donated to Make-A-Wish Taiwan ROC Joy Wish Association. Super Typhoon Haiyan hit the Philippines hard in November 2013. TAIPEI 101 immediately called on our employees and the tenants of the office tower and shopping mall to launch joint donations to demonstrate humanitarian concern, fulfilling the responsibility of citizens of the world. The Chairman and CEO of TAIPEI 101 also donated generously, hoping to bring more companies to follow suit and show solicitude for the neighboring country all together. A total of NT$880,000 was raised. Disadvantaged Groups and Charity Groups Visiting the Observatory TAIPEI 101 cares for the disadvantaged attentively, makes efficient use of resources to contribute to the community, taking disadvantaged groups, such as the elderly in nursing homes, children in orphanages, children of low-income households or people with disabilities, for free visits to the TAIPEI 101 Observatory from time to time for them to enjoy the beautiful scenery of Taipei. In 2013, we provided 3,184 disadvantaged people in total with free visits to the observatory, which, when converted into revenues, accounts for a value of NT$1,592,000 in total. 45 “See Art, See love” 10 Fashion Art Exhibition and Charity Auction Coinciding with the tenth anniversary of TAIPEI 101, we worked with the charities in collaboration to hold “Taiwan International ORBIS Blindness Prevention Foundation” in September 2013, which was a Fashion Art Exhibition of an international scale, to support the cultural and creative industries of fashion and Charity activities. We commissioned 10 domestic and foreign designers to create 10 works for TAIPEI 101, and exhibit them at City Square on the 4F during the anniversary sales period; there were a total of 11,041 visitors. Customers can carry out bids for artworks on the event website, and the artworks that are less than the end target of the bidding amount were placed in the on-site bidding of the elite charity dinner “Dazzling 10 Years Seeing Love” organized for Prestige Club members, and a total of 232 people attended the dinner. The NT$1.56 million raised in the exhibition fundraiser will be used for a two-year sponsoring scheme of ORBIS in the remote areas of Hualien and Taitung, facilitating early detection and early treatment of eye diseases in children in remote mountainous areas. 2.58“See Art, See Love” 10 Fashion Art Exhibition and Charity Auction 2.57 List of groups visiting the observatory for free 46 Public Interest Lighting To allow the community to have more positive energy, when Taiwan is in need, TAIPEI 101 would turn on the lights on its facade with a public interest message, to cheer Taiwan up. For example, in 2008 during the August Eighth Flood, we lit “TAIWAN Go Go” to pray for the victims; in 2009 when the Taiwan economy was in the doldrums, we displayed the words, “2010 TAIWAN UP” on New Year's Eve to inspire the public, hoping that the economic situation in Taiwan would improve. And during the 2013 World Preterm Children Day, to support the launching of the clothing selection event organized by the Foundation of Preterm Children, TAIPEI 101 lit “Preterm Children Go” to raise the public attention to issues of preterm children. In the 2013 World Sports Conference, the tug of war team of Jingmei Girls High School won the gold medal, so the words “Women's Tug of War Gold Medal, TPE GO” was specially shown on the facade of TAIPEI 101 to express congratulations to them. During Breast Cancer Awareness Month, TAIPEI 101 lit a pink ribbon to remind women to pay attention to breast cancer prevention. TAIPEI 101 contributed to raising the attention of Taiwan and the international community to social issues through the public interest lighting. The total value of charitable lighting in 2013 was NT$54 million. 2.59 World Prematurity Day 2013 2.61 List of Public Interest lighting 2.60 Public Interest Lighting – Encouragement for Premature Children 47 agnès b. Cubs Mug Charity Sale During Christmas in 2013, agnès b. and TAIPEI 101 jointly organized a charity sales event. The French headquarters of agnès b. designed a globally limited charity care product agnès b cubs mug, while TAIPEI 101 provided free of charge the Songzhi main entrance of the shopping mall (worth NT$5.3 million) for the display of the agnès b. love charity hut, which was used for displaying and selling, and was also a window for customers to deliver their love and care. Sale proceeds were all donated to the charity organization “New Hope Foundation” as school grants and livelihood assistance for children from disadvantaged families, which also allowed disadvantaged families to experience the festive atmosphere and care. 48 Promote Taiwanese Culture, Arts and Food Public Art Guided Tour Events With our mission of becoming the highest culture and art platform, TAIPEI 101 shoulders the task of public arts promotion, supporting events organized by the Cultural Affairs Bureau of Taipei City Government. During the period between September to October 2013, we coordinated two guided tours on “street art and public art” around Xinyi District, and three city guided tours named “hangout and travel in Taipei”. We invited experts to guide the visits to the public art in the 1F lobby of the tower. Through expert commentary, visitors were able to better understand the meaning of the public art pieces in and around TAIPEI 101. 2.62 agnès b cubs mug charity sale 2.64 Public art guided tours 2.63 agnès b cubs mug charity sale 2.65 Public Art- Partners Monument Supporting Taiwan's Cultural and Creative Industries -2013 TAIPEI 101 Design Competition As TAIPEI 101 has firmly established its international architecture and fashion image, it could become a facilitator of cultural and creative industries. To provide a stage for the creative design talents of the new generation, TAIPEI 101 organized the “2013 TAIPEI 101 Design Competition” in November 2013, calling for the design of cultural and creative goods which could be commercialized and designed under the theme of TAIPEI 101. There were a total of 1,745 entries, and the gold, silver and bronze award-winning entries were displayed on the highest cultural and creative platform - TAIPEI 101 Observatory, showing Taiwan's outstanding design standards. Meanwhile, an area exclusively dedicated to Taiwan's cultural and creative boutiques was set up at TAIPEI 101 Mall, displaying and selling creative goods designed by Taiwanese designers. 2.66 2013 TAIPEI 101 Design Competition Steel Cable Art, “Infinite Life” To ensure safe operation of the high-speed elevators, after five years of operation and having carried 6.6 million passengers, we replaced the steel cable of the world’s fastest elevator for the first time in May 2010. The dismantled steel wire of the steel cable has a total length of 500 km, equal to the length of Taiwan’s coastline from north to south. The steel cable has served the tower well and is of extraordinary significance to TAIPEI 101. Furthermore, based on the spirit of environmental protection and recycling, we invited Taiwanese artist Kang Mu-hsiang, to create an artwork with tightly coiled retired cable, which resembles a steel embryo reborn from the towering structure from which it came. The difficult creative process lasted a year and a half, and in September 2013, the steel cable was finally rendered with an artistic face, which was named “infinite life”. Standing as testimony to TAIPEI 101’s philosophy of environmental protection, it was placed at the entrance of the TAIPEI 101 Tower, available for visitors to appreciate and take pictures, whilst conveying to the public that TAIPEI 101 will continue its glorious past, and go on creating a future full of infinite possibilities. TAIPEI 101 Observatory Elevator Cable The cable in display is from the World’s F a s t e s t E l eva to r fo r TA I P E I 1 0 1 Observatory, in service from Jan. 19, 2005 to May 28, 2010. Each elevator uses ten cables, 447 M in length and 700 KG in weight. Each cable is composed of 8 steel ropes with 25 steel wires and 1 steel core rope with 49 steel wires, totaling 249 wires. The total length of steel wires equals to 111 KM. 2.67 Steel Cable Art, “Infinite Life” 49 Cultural Talk - Storytelling via Machinery In December 2013, we held an art exhibition in the lobby of the office tower, which lasted for 22 days, displaying master Huang Hsin-Chien’s work “mechanical storytelling”, which mainly applied the mechanical device of the early flop style timetable to create a large matrix of interactive faces, and each unit flop consists of different parts of a face, which can be individually program controlled. By operating the flopping mechanism repeatedly, different composition of faces with all kinds of expressions can be created. On 15 December 2013, we invited Mr. Huang to lead a guided tour, illustrating the design concept. On top of that, an expert lecture was held on 20 December 2013, so that more people could understand Taiwan’s culture and arts through contemporary installation art. 2.68 Storytelling by Machinery Promoting the Movie, “Beyond Beauty: Taiwan from Above” 2.69 Sponsored Screening of “Beyond Beauty: Taiwan from Above” “Beyond Beauty” is a movie shot in mid-air recording Taiwan's beauty and damaged environment, which enables the audience to see the beauty of our island and the destruction caused by economic development. In September 2013, a venue for press event to promote the movie was provided by us for free. TAIPEI 101 also had lighting display as “Beyond Beauty” on the exterior wall to promote the movie when it was released in November. We want to help attracting more people to see this movie, so that while appreciating the beauty of Taiwan, people gain a deeper understanding of the current environmental crisis that Taiwan faces. Promotion of Taiwanese culture - Taiwan Tourism Calendar Tourism Bureau's “Taiwan Tourism Calendar” exhibition consisted of art and festivals recorded by Annie, the backpacker who traveled around Taiwan. Through the means of vivid videos and photos, combined with interactive technology, the viewers could become immersed in and experience the atmosphere of the 42 festive events throughout the year in Taiwan. In order to promote the unique charm of Taiwanese culture, in July 2013 we provided the observatory free of charge for the exhibition of the tourism calendar, as well as introducing special priced tickets for the observatory and providing lucky draws. More visitors were attracted to the TAIPEI 101 Observatory to enjoy the beauty of both the view and Taiwan's festivals. 50 2.70 Taiwan's Tourism Calendar Stamps and Post Service We set up a special stamp store at the observatory, displaying and selling Taiwan’s commemorative stamps. The special stamps are appreciated by tourists, and they can be purchased for collection or gifts. In addition, we specially set up mailboxes up in the observatory, so tourists may write their messages on the postcards, place a stamp and drop it directly in the mailbox, sending greetings and blessings to the world from the sky. 2.71 Stamps and post service: TAIPEI 101 Mailboxes Souvenirs Made from Local Fruits – Vinegar 2.72 TAIPEI 101 fruit vinegar: grape vinegar (Yuanlin): increasing metabolism; apple vinegar (Lishan): staying young; plum vinegar (Jiaxian): maintaining health; pineapple vinegar (Kaohsiung): helping intestinal movements We support Taiwan's agriculture, especially Taiwan’s local fruits. The fruits went through the process of direct bacteria brewing and fermentation, and transformation by beneficial bacteria, handmade fruit vinegar that has been purely brewed for more than 400 days is then produced. The Observatory sell this in the shop so foreign tourists would get to know the quality of our local produce. In order to offer foreign visitors a chance to taste the Taiwanese delicacies such as pineapple cakes, we set up a special counter in the observatory, so visitors can buy them as souvenirs and help to promote Taiwan’s food culture. Caring for Taiwan’s Agriculture – TAIPEI 101 Green Living Market With the international visibility of TAIPEI 101, high-quality agricultural and livestock products in Taiwan can be promoted to the world. TAIPEI 101 and Taiwan Technology Agribusiness Development Association jointly organized the “TAIPEI 101 Green Living Market” in November 2013, and cloud technology was also utilized to introduce an App, which enabled customers to purchase through the Cloud by scanning the QR Code in addition to selecting and buying on-site. These carefully cultivated and farmed agricultural and livestock products, selected from 23 Taiwan's highquality farms, were for sale in the lobby of TAIPEI 101 Tower. The products include Taiwan’s best orchid, that was praised by Queen Elizabeth of UK, sweet potatoes from Shennong Award winner Guagua Garden, and royal rice produced and manufactured by Taiwan's oldest centennial rice mill. 2.73 TAIPEI 101 Green Living Market Event and 2012 Corporate Sustainability Report Launch 51 Sustainable Supply Chain Ever since TAIPEI 101 began operating, the suppliers and subcontractors have been our most important partners. TAIPEI 101 upholds the philosophy of sustainable development, continuously improving the management of the supply chain and the policy of sustainable procurement, and exerting influence, requiring our partners to comply with TAIPEI 101’s standards to reduce the impact that the supply chain may cause. TAIPEI 101’s pursuit of excellence coincides with its anticipation of coming to a consensus and enhancement of the supply chain’s green competitiveness, building together a value chain with stable development. Supply Chain Management TAIPEI 101’s suppliers include cleaning supplies and household goods. The cleaning of the public area, security management, and facilities and system management are all outsourced to vendors. For supplier management, we have set the “Supplier Evaluation Management Measures” to ensure that the procured products are in conformation with the basic needs, and that the quality suppliers selected are ones that meet the specifications. The quality, service, technical capability, financial condition, management and other aspects of the suppliers can affect the tenants’ and our operations. Therefore, we adopt the above points as the criteria for supplier selection. Our suppliers are assessed at the end of each year, and based on the assessment results, the suppliers are divided into three classes: Class A suppliers pose the lowest risk, and can be logged into the “qualified supplier” database, and the procurement procedures may be carried out; Class B suppliers pose a moderate level of risk, they are required to be assessed based on the supplier selection criteria, again before they are allow to participate in the procurement procedures. Class C suppliers are highrisk suppliers, whose qualifications are to be immediately revoked. Those that commit a fundamental breach will forthwith be blacklisted as rejected vendors. As to the outsourcing of vendors, we solicit publicly in the manner of tendering. In addition to meeting the basic criteria such as company size and technical capability, obtaining the international quality certification ISO 9001 is also one of our appraisal criteria. We also require our outsourcing vendors to comply with regulations with reference to the environment, human rights, labor, health and safety, strictly prohibiting any outsourced vendors from employing child labor, employing illegally foreign workers, and discriminating, etc., so as to reduce the risks that might be inflicted on the outsourced vendors themselves and us; presently, all of the outsourced vendors are in compliance with our specifications. As of the end of 2013, a total of 30 security personnel and 37 cleaning service personnel from outsourced vendors for the TAIPEI 101 Tower; a total of 39 security personnel and 107 cleaning service personnel from outsourced vendors for the TAIPEI 101 Mall. On the perspective of social care, 52 we also strongly support the outsourced vendors in hiring disadvantaged and indigenous citizens. After investigation, it was found that in 2013, among the total number of the cleaning crew, 32 of them are disadvantaged persons and 5 of them are aboriginals, of which 3 are for office tower. 2.74 The number of people from outsourced vendors in 2013 We have further laid down the “Regulations for the Management of Gifts”, which strictly prohibits all employees from bribery or bribe taking. To establish sustainable development in the supply chain, we planned to formulate regulations for the management of supplier evaluation and operating procedures with regard to public notices for tender procurements of a significant amount, to append corporate social responsibility indicators to supplier selection criteria, and establish an independent department, as well as draw up the “Code of Conduct for Procurement Staff” for the sake of strengthening our control over our suppliers. In 2013 there were no bribery incidents. 2.75 The Future Plans for Supply Chain Management Sustainable Procurement Policy TAIPEI 101 was certified by USGBC's LEED Existing Building: Operations and Maintenance category at Platinum level in 2011, thus became the world's tallest green building. In view of this, to sustain the hard-won achievements, we insist on continuing the implementation of a comprehensive sustainable procurement policy, and requiring the tenants and outsourced cleaning vendors to use eco-friendly cleaning products only, implementing precisely our green cleaning policy. We are responsible for purchasing Green Mark certified sanitary paper, which are used for general purpose and in public toilets, and have cost us a total of NT$ 4.8 million. The outsourced cleaning vendors are responsible for purchasing cleaning products and electric vacuum cleaners, which are conferred with globally recognized labels or certifications for green products, to reduce the environmental impact of their cleaning work. direction of promoting green cleaning will be given to choosing high-performance green vacuum cleaners or cleaning equipment. In 2013, the shopping mall began using cleaning products consistent with national security provisions and certified with Green Mark for the dishwasher detergents and other cleaning products, the usage accounted for 34% of total, and the utilization rate will be increased to 40% in the future, in response to the concept of environmental protection and sustainable development. Improve Vendors’ Personnel Quality In order to provide employees, tenants and customers a healthier, more comfortable and safer environment, we entrust professional outsourced vendors with the responsibility of cleaning the public area and maintaining the safety of the office tower, shopping mall and the observatory. We view the outsourced vendors’ personnel as partners of sustainable development, hence we request that outsourced vendors are obliged to enhance their employees' working competency, so that they can grow side by side with us to achieve the goals of sustainable development. Outsourced vendors should provide 24hour pre-service training for the new staff, allowing staff to understand the working rules of TAIPEI 101, as well as the key points of the working environment and safety matters. Also, in accordance with the requirements of the “Labor Safety and Health Act”, outsourced vendors must inform the staff of the risks related to work and the measures that should be taken. 2.76 Types of eco product labels, purposes, and percentage of total amount The current proportion of eco-friendly cleaning products in the office tower is about 30%.t According to the actual user experience, it is found that the effect of green cleaning product is not very good, so we need to increase the frequency of cleaning in order to achieve satisfactory cleanliness, which has had the reverse effect of consuming even more resources. Therefore, the priority of the future 53 2.78 Tower Cleaning Personnel Training 2.77 Details of employee training sessions provided by outsourced vendors 54 11. Number of participants X total number of times a year X number of hours each time Chapter 3 Green Homeland 55 Green Earth Economic activities of the human race not only create an impact on the ecosystem of the earth, but also endanger the environment that human inhabits. In light of global warming and climate change, we must work together to take action for mitigation and adaptation. As the landmark of Taiwan, TAIPEI 101 is also a corporate citizen of the world that sets the paradigm in the management of skyscrapers. Therefore, it has to set an example in environmental protection and treasuring resources of the earth. The company wishes to build a consensus and joint effort with all parties concerned and realize the concepts of sustainable development together. Commitments to Mother Earth TAIPEI 101 is well aware that the building and the operation in itself creates an environmental impact. We not only exercise two of the six “TAIPEI 101” characteristics – Innovation and Environment – to aggressively support environmental advocacy, but also continue to improve energy efficiency, water usage, and waste recycling in the office tower, shopping mall, and the observatory. In 1997, the building design of TAIPEI 101 already factored in environmental factors, incorporating measures such as the double low-e glass curtain wall to reduce heat penetration and A/C energy use in the summer, rain water recovery and storage system, garbage collection chute system that saves lift ride in delivering waste, and the advanced “Energy Management and Control System” (EMCS). Right from the beginning of operations, we have taken environmental protection as a priority and we remain in compliance with all regulations. In 2013, we were not fined for any violation of environmental regulations. 3.1 TAIPEI 101’s Six Characteristics Based on the idea of sustainable management, TAIPEI 101 implements its environmental protection policies and pursues advancement in equipment and technology. At the same time as growing business, TAIPEI 101 will do its best to protect the resources of the earth and the natural environment. This is our commitment to Mother Earth. 56 The plan of the Corporate Sustainable Development Team In 2013, departments involved in public area maintenance, green house gas audits, and carbon reduction measures include the environment managements teams of Tower Property Management and Mall Property Management Dept. and power team of Engineering Operation Management Dept... In the future, the Environmental Sustainability team under the Corporate Sustainable Development Team will continue to enforce environmental protection measures. It will draft sustainable development policies and assess risks, taking into consideration climate change issues and the core value of TAIPEI 101. Environmental Protection Policy ◆◆ Green On Project Built on the foundation of successfully acquiring various certifications, we have initiated the Green On Project. The seven major dimensions of the project are as follows: 3.2 Seven major dimensions of Green On Project We also create dedicated web pages to introduce this project and forthcoming events to the general public. Green On website: http://www.taipei101greenon.com.tw/ ◆◆ Earth Hour International Environmental Protection Campaign Since 2009, TAIPEI 101 participates in the event on its own initiative to turn off the lights for one hour around the world initiated by the World Wildlife Fund (WWF). The building turns off the exterior lighting for one hour as famous landmarks around the world, in the hope that other buildings and the general public will respond to the “Earth Hour” campaign together and be aware of carbon reduction, energy savings, and climate change issues. Taiwan Diamond Level Green Building Certification TAIPEI 101 received the “Diamond Level” certification awarded by the Architecture and Building Research Institute, Ministry of Interior for the Taiwan green building – old building improvement category in March 2013. This certification is an evaluation system and certification regulation in the evaluation of green buildings in terms of “Ecology, Energy Saving, Waste Reduction, and Health” (EEWH). TAIPEI 101 took the “Carbon Reduction Result Evaluation Method” to apply for the evaluation. The company also performed an evaluation on the improvement results of “air conditioning technology” and “illumination technology.” The consultancy fee totaled NT$270,000. Achieving this Diamond level is a further recognition for the effort of TAIPEI 101 in terms of green building and environmental protection. Energy Savings and Carbon Reduction Action Emblem 3.3 Earth Hour International Environmental Protection Campaign Recognition for Environmental Protection LEED Platinum-Level Green Building Certification TAIPEI 101 was certified by USGBC as LEED for Existing Buildings: Operations and Maintenance (LEED EM:OB) Platinum level in 2011 and became the tallest green building in the world. This is the pride of TAIPEI 101 and Taiwan. 3.4 TAIPEI 101 devotes resources to energy savings and carbon reduction in actions such as improving lighting fixture, air conditioning and water equipment, recycling, and greening the environment. At the same time, the building provides a comfortable ambience. We received the “Energy Conservation and Carbon Reduction Action Emblem - Merit Award” from the Environmental Protection Administration, Executive Yuan, in December 2013, which highlights the results our energy saving and carbon reduction. TAIPEI 101 Tower is to be the paradigm for other buildings. LEED EM:OB Platinum certification Logo Because the company was not aware of this green building evaluation system when TAIPEI 101 was designed, it is not like the new buildings that have adopted LEED standards at the time of design. The evaluation standard for Platinum level certification of existing buildings is extremely stringent. To fulfill the commitment to protect the environment at a high standard, for a period of more than two years, TAIPEI 101 executed improvement projects on more than one hundred pieces of equipment, drafted green policies and measures, with the help of employees and tenants of the office tower to finally receive the certification. Earning the LEED certification is not the end. We will continue to enforce the green actions adopted through the course of certification and plan to be re-certified in 2016. 3.5 Taiwan Diamond Level Green Building Certification 3.6 Energy Conservation and Carbon Reduction Action Emblem 57 Environmental Performance Energy Usage Efficiency TAIPEI 101 is a mixed use tall building with office, retail and tourism components. Altogether, there are 11,663 employees of companies that rent space from TAIPEI 101 and, on average, 59,274 customers and tourists enter and exit TAIPEI 101. Therefore, the indoor temperature, lighting, elevator operation, and other equipment have to function normally to maintain the smooth operation of the complex. The operation of a building consumes a lot of energy. For this reason, energy is a large component in our operating expenses. The adjustment of the electricity rate and the uncertainty of Taiwan’s power supply is a potential business risk to us. To ensure that our company can deal with this type of risk, we perform monitoring, measurement, and analysis on building energy efficiency every year and work hard to improve energy efficiency. Total power usage in 2013 was 84.73 million kWh. The office tower, the shopping mall, and the parking lot used 47.37%, 45.83% and 6.8% respectively. For office tower, office tenants and restaurant tenants are responsible for their own power consumption, and they used 33.89% of the total tower power usage. For shopping mall, retailers and restaurant tenants used 42.32% of total mall power usage. Overall, 64.39% of the power usage in 2013 was under the direct control of our company. Our carbon emission base year is 2009. Judging from overall power usage, in 2013, the office tower’s power usage declined by 2.49% from the base year of 2009; the shopping mall 11.58%; parking lot 4.08%. Overall, power usage declined by 6.98% from base year. However, between 2009 and 2013, rental floor space of the office tower increased by 17.71%, and the number of tenant’s employees increased by 19.61% in the same period. When calculated with the average energy usage intensity of leased area, the figure in 2013 declined by 17.71%, compared to that of the base year. When calculated with the average energy usage intensity of tenant’s employees, the figure in 2013 declined by 18.48%, compared to that of the base year. The usable floor area of the shopping mall covers retail space for rent, hallway, elevators, and other public access areas. When calculated with the average energy usage intensity of the usable floor area, the figure in 2013 declined by 11.58%, compared to that of the base year. 3.7 Power Usage of Office Tower, Shopping Mall, and Parking Lot Office Tower 3.8 Office Tower Power Usage Breakdown Office Tower 3.9 58 Office Tower Leased Area Energy Usage Intensity 12. (kWh/Year/Leased Floor Area) Office Tower 3.10 Office Tower Tenants’ Employee Energy Usage Intensity Shopping Mall 3.11 Shopping Mall Power Usage Breakdown Shopping Mall 3.12 Shopping Mall Usable Floor Area Energy Usage Intensity Water Resource Consumption We monitor water usage every year to improve water resource usage efficiency. Total volume of water used in 2013 was 530,201 metric tons. The office tower used 47.85% of water, while the shopping mall used 52.15%. Overall water usage volume declined by 1.47% from the level of 2012. Judging from the building water usage intensity, while there were more employees of the building’s tenants and visitors to the shopping mall, the building water usage intensity of the office tower and of the shopping mall declined by 4.01% and 1.32%, respectively, indicating that our water usage efficiency significantly increased. 3.13 Total Water Usage in 2013 13. (kWh/Year/ Tenants’ Employee No.) 14. (kWh/Year/Main Building Area). Shopping mall usable floor area includes the area of aisle, elevators. 59 Office Tower 3.14 Office Tower Water Usage Breakdown Shopping Mall 3.15 Shopping Mall Water Usage Breakdown 3.16 Office Tower and Shopping Mall Annual Number of Users 60 15. Office tower total water usage/office tower annual number of tenants’ employees 16. Shopping mall total water usage/shopping mall annual number of thousand users Recycling Waste TAIPEI 101’s scope of business is managing and providing service to the office tower, shopping mall and the observatory. Therefore, most of the waste comes from daily operation, from tenants, and from fit-out work. The waste that cannot be recycled is sent to the incinerator or landfill. The total volume of recycled waste in 2013 is increased by 32.46% from that of 2012. Some of the waste can be processed and turned into raw material to be reused. Because we see such material as important resources, we have separated them into 25 categories from the source where the waste was generated, so that we can transfer them for reuse and reduce waste. 3.17 Total Waste Weight 3.18 Category, Weight, and Percentage of Recycled Material 61 Greenhouse Gas Inventory Beginning from 2011, TAIPEI 101 started taking greenhouse gas inventory. The company compiles a Green House Gas Inventory Report according to ISO 14064-1:2006, and the report is certified by a third party. The sources of our green house gas emission are summarized as follows: 3.19 Green House Gas Emission Source Table In 2013, the scope of the inventory encompasses the entire range of our company, including the office tower, shopping mall, and the observatory. The emissions from all categories are shown in the graph below. Scope 1 is the emission of direct green house gas, consisting mainly of the combustion of gasoline in business vehicles, the diesel used in the emergency generator, and the refrigerant used in air conditioning systems (R-134a refrigerant). This scope constitutes 0.08% of total emissions, improving from the level of 2012. Scope 2 is indirect emissions, consisting mainly of electricity purchased externally. It is the energy used to power the air conditioning system, public area illumination, the elevators and escalators, and other equipment and systems, but not including the electricity used for operation inside the office space. This scope constitutes 99.92% of total emissions at 28,231.89 metric tons of CO2 equivalent, showing a decline of 7.05% from the level of 2012. Our company does not have data on Scope 3 emissions at this moment. The major source of HFC emission is the air conditioning system, and the figure can be estimated from the addition of R-134a refrigerant into the air conditioning system. Because there was no consumption of refrigerant in 2013, there was no addition, thereby no carbon emissions produced. 3.20 2013 Green House Gas Emission Certificates 62 3.21 Scope 1 and Scope 2 Emission 3.22 Comparison Table of Green House Gas Emissions in the Past Three Years 3.23 Ozone Depletion Material Emission 17. Metric Ton CO2-e/Year/Rental Floor Area 63 Green Building Since TAIPEI 101 began operation, it has been improving the energy efficiency, saving water resources, and recycling rate. Finally, it became “The World’s Tallest Green Building”. To continue the achievement, TAIPEI 101 set annual environmental goals to continue seeking new improvements. With the joint effort of all employees and tenants’ employees, the company executes all measures to improve environmental performance and create a more eco-friendly and comfortable work environment, as well as to receive the highest economic benefit. Commitment by Tenants After TAIPEI 101 received the Platinum Level LEED certification for existing buildings in 2011, the company continued to manage the environment of the building with stringent regulations to fulfill the commitment of protecting the earth. In total, there were 115 corporate tenants leasing office space as at the end of 2013, and their efforts are needed to maintain the green building. For this reason, we add green rules and regulations to the “Tenants’ Manual” and regulate the fit-out work, cleaning, and the energy and resource management in their day-to-day operations with the manual to comply with green building regulations. ◆◆ Green Fit-out New tenants of the building fit-out their space according to their office layout design. To ensure that their fit-outwork is in compliance with regulations of our building, we use LEED as a framework and incorporate international best practices to draft the “Green Fit-out Handbook”, which requires that tenants prevent noise pollution, maintain indoor air quality, and choose green interior material while they carrying out the work so to reduce impact on the environment. Contractors in violation of fit-out regulations will be fined. faucets, toilets, and urinals bearing water conservation labels. For tenants with high power usage, we perform electric panel inspection by methods such as infrared inspection, power analyzer measurement, three-phase aggregate load, and electric panel switch contact lockdown to understand the cause of electricity consumption and propose improvement measures. Building Rain Water Recovery System TAIPEI 101 installs rain water capture systems on platforms every 8 floor above the 34th floor. The system collects rain water and sends it to the large rain water tank on the B5 level. After the rain water is filtered, it is reused as outdoor landscape irrigation water and for washing exterior equipment and surfaces. The system collected 8,402 metric tons of rain water in 2013. Additionally, the company used the collected rain water for the toilets in the shopping mall. The remainder of the waste water is drained to the sewage system of the city according to government regulations. ◆◆ Green Cleaning Many tenants of the building outsource the cleaning of office space to service providers as we do. Therefore, we strongly encourage tenants to request their cleaning service provider adopt the same green cleaning policy as we do, which is using cleaning products and equipment in compliance with environmental regulations. Tenants should be responsible for the separation of waste generated in their areas into recyclable, general waste, and food waste, according to the principle. Waste should be placed in the designated collection containers on each floor. Cleaning staff are responsible for checking the separation of waste and taking waste to the Waste Management Center in the basement. ◆◆ Energy and Water Conservation Measures With the Green On Project, we convey TAIPEI 101’s goal in energy and water conservation to its tenants and the tenants’ employees in the hope that tenants will support green actions together and control the consumption of energy and water resources. Our recommendation in lighting and water conservation includes using energy-efficient lighting fixtures, buying office equipment and appliances with energy-saving and eco-friendly labels, and buying water 64 3.24 Rain Water Recovery System – the Drainage Waste Management If we use a service lift to transport waste from all the floors to the Waste Management Center in the basement, we would waste a lot of labor and energy. We have had installed a waste collection system to transport not recyclable waste to the Waste Management Center. The waste collection system consists of four sections of gravity driven chutes. At the end of each chute is a shredder that cuts waste into pieces before it is sent to the Waste Management Center in the basement. With such a process, the air and liquid in the waste will be extracted, and the volume of the waste will be compressed to one-third of the original size. Then the waste handling contractor hauls it away. Recyclable waste is sent to the Waste Management Center by service lift. In consideration of sanitation factors and to prevent the decomposition of food from affecting the environment of the building, food waste is first stored in a freezer in the basement and then hauled away by the food waste handling contractor. Indoor Illumination and Air Conditioning Improvement Measures I n 2 0 1 3 , TA I P E I 1 0 1 a p p l i e d fo r s u b s i d y f r o m A i r Conditioning System Energy Saving Performance Project of the Energy Bureau, Ministry of Economic Affairs and Industrial and Commercial Energy Efficiency Improvement Project of the Industry Development Bureau, Taipei City Government. We spent NT$25.2 million and NT$3.73 million respectively to improve air conditioning technology and illumination technology. For the project of the Energy Bureau, Ministry of Economic Affairs, we received NT$8.40 million in subsidy, which is used to replace fixed frequency drives with variable frequency motors in air conditioning system so that it functions according to the actual needs as monitored by central monitoring system and reduce energy consumption. We actually saved 2.85 million kWh of power, 47% of energy saving from that equipment change. For the public area illumination system, we received $710,000 of subsidy from the Industry Development Bureau of the Taipei City Government and used the fund to replace the existing fire safety lighting and PLC overhead lighting fixtures with LED lights. Altogether, 1,459 units of lighting fixtures were replaced, saving 260,000 kWh of power each year at an energy saving ratio of 74%. Five-Year Energy Conservation Plan TAIPEI 101 is committed to reducing energy consumption. F o r t h i s p u r p o s e , we d r a f t e d a F i ve - Ye a r E n e r g y Conservation Plan. The company will perform optimization measures on the illumination management system and the air conditioning system in stages. Regarding illumination management, we will periodically analyze the illumination power usage in the mechanical room and parking lot, utilizing sensors, and setting on-off pattern in the parking lot based on business hours. The optimized management for the air conditioning system will supply external fresh air, effectively control the distribution performance of chilled water, and analyze the optimal program. Curtain Wall Inspection Project In 2013 when the powerful typhoon Soulik hit Taiwan and toppled more than 1,600 trees in Taipei City, the strong wind also damaged part of the exterior wall of TAIPEI 101 Tower. The repair work took almost three months to complete, at a cost of NT$3 million. This taught us a lesson about the force of natural disasters. To respond to the impact brought by climate change, we executed a curtain wall inspection project for the whole building. The inspection came in two phases: The first phase was inspecting the metal sheet wrapping on curtain walls above the 25F. The second phase was inspecting the exterior window frame of the entire building. The inspection cost totaled NT$9.4 million. 3.25 TAIPEI 101 Mall Metro Plaza 65 Green Shopping Mall TAIPEI 101 Mall has a good collection of international luxury brands flagship stores and a choice of gourmet restaurants. Customers enjoy access to merchandise and fine dining from around the world. With our faith in sustainable development, we want to reduce the environmental impact to a minimum while we operate a magnificent shopping mall at the same time, so that we can provide a green and healthy shopping environment. Energy and Water Resource Management In 2013, the shopping mall received a subsidy from Industrial and Commercial Energy Efficiency Improvement Project of the Industry Development Bureau, Taipei City Government. The subsidy was used on improving lighting fixtures in public areas and replacing the less energy-efficient lighting fixtures, such as 924 units of PLC-52W overhead lights and 535 fire safety lights. All of them have been replaced with LED lighting fixtures, and the energy saving ratio is expected to be 74%. Additionally, for the energy saving performance upgrade project, we added variable frequency motors to air conditioning heat pumps and air handling units. The energy saving ratio of related equipment is expected to be 47%. In 2014, the company is planning an energy saving upgrade project that adds variable frequency drives to the shopping mall air conditioning brine pump. The energy saving ratio of related equipment is expected to be 30.01%. Shopping Mall Restrooms Recognized as Outstanding To ensure that customers of TAIPEI 101 Mall are always in a pleasant mood while they are shopping, we are raising the bar on the cleanliness and service of public areas year after year. We are increasing the frequency of cleaning, so that the restrooms can remain clean. We are also improving the service quality of the cleaning staff and replenishing toiletries, such as toilet paper and liquid soap. In the future, we are planning to replace ventilation fans in the restrooms to improve the air quality in the restrooms. In terms of water resource management, because we expect the opening of the MTR line will bring a large number of visitors, water usage in the public restroom will increase. We have a responsibility to reduce water footprint to a minimum. Therefore, the shopping mall directed the rain water collected from the office tower to toilet use in 2013. The expected water saving is 30,000 tons per year. Recycling With Our Customers To create a friendly and clean shopping environment, we encourage customers to recycle waste with TAIPEI 101. In the past, because the shopping mall garbage is collected together and sent to the Waste Management Center for separating into recyclable and waste. The 3.26 The Recyclable and Waste garbage bins in the shopping Bins in the Shopping Mall mall are not marked as recyclable waste or regular waste, which confused the customers as to where they should dispose of recyclable trash. In 2013, we added 50 recyclable bins in the shopping mall to encourage recycling. 66 3.27 2013 Taipei City Public Restroom Evaluation as Outstanding (User- friendly Category) 3.28 2013Taipei City Public Restroom Evaluation as Outstanding (Department Store Category) Green Tourism TAIPEI 101 is an architectural landmark in Taiwan and a must on the itineraries of many visitors when they come to Taiwan. The building draws many people to the observatory each year, and they have a bird’s eye view of Taipei City from the tallest building in Taiwan. By 2013, the observatory has registered 2.296 million visitors. This figure shows that we are an important asset to Taiwan’s tourism industry and responsible for providing a comfortable and environmentally-friendly tourism facility. Sharing TAIPEI 101’s Environmental Protection Measures We host many tourists at the observatory on the 89F of the tower to enjoy the view. Through this, we can have more people understand the actions that TAIPEI 101 has taken to care for mother earth. We installed a Green On wall display at the observatory to promote the concept of TAIPEI 101’s Green On project and the measures implemented, and to encourage the visitors to have a 10+1 green actions in their daily lives. 1. Turn off lights whenever possible 2. Conserve water 3. Take public transportation 4. Regulate the air conditioning temperature 5. Treasure paper resources 6.Recycle 7. Bring your own utensils 8. Buy green merchandise 9. Eat local food 10. Use green cleaning products “10+1” means that the 10 green initiatives have to be reinforced with one persistent determination, because the earth can be better only with the persistent effort of everyone. Maintaining Tourism Environment Quality B e c a u s e t h e o b s e r v a to r y i s located on the 89F of TAIPEI 101, its management of energy, water resources, and waste is identical to that of the tower. For lack of space, we did not add recycling bins at the observatory. However, in practice, we send the garbage generated at the observatory to the Waste Management Center in the basement for recycling. To give customers peace of mind, we posted a note about waste handling on the outside of the garbage bin in the observatory. 3.30 Observatory Garbage Bin 3.29 Green ON Wall Display 67 Encouraging Tourists to Take Public Transportation 3.31 MRT Xinyi Line Limited Edition 101 Cup To support low-carbon tourism, we e n c o u r a g e v i s i to r s to t a k e p u b l i c transportation to get to TAIPEI 101. When the MRT Xinyi Line opened, the observatory launched the 2013 MRT Xinyi Line limited edition 101 Cup, which used lively colors and city pattern designs. They were displayed at the B1F Gift Shop of the observatory, hoping to encourage more people to travel to TAIPEI 101 by MRT and use their own cups for drinks. Within the first month of operation, it is free to take the Xinyi Line, and the sale of 101 Cup doubled. All 800 limited edition cups were sold within three months, achieving the goal of this promotional activity. Green Christmas Tree We asked Leslie Chen, a renowned designer, to design a Christmas tree for the lobby of TAIPEI 101 Tower. It was a gigantic, green Christmas tree that came from the 37,112 PET bottles recycled from the building over two months and then spun into 3,290 yards of yarn and then folded into 122,000 flowers. The dandelion-shaped light on the top of the Christmas tree shows that the idea of environmental protection will spread around the world like dandelion seeds. During the Christmas time of 2013, 508 bottles of bottled water in the shape of TAIPEI 101 were crafted into an “Crystal Christmas Tree” that was 2-meters tall and 1.5-meter in diameter, signifying TAIPEI 101’s height of 508 meters and conveying the environmental conservation image of a world-class green building. 3.33 Crystal Christmas Tree 3.32 Observatory Damper Baby and Christmas Tree 68 Green Community While TAIPEI 101 is the paradigm of the tallest green building, it continues to seek innovative technology to improve the energy consumption of the building. The reason for doing so is fulfilling the green commitment to the earth. We work hard to reduce the direct impact to the environment from our operation and think about the indirect impact of business activities, such as the reduction of green space and activities that cause greenhouse gas emissions. We start from protecting the surrounding environment and promote environmental education so that green living can thrive in cities. Adopting Chung Chiang Park Green Education Chung Chiang Park is a habitat abundant with wildlife, including the Taipei tree frog that is on the red list of threatened species of the International Union for Conservation of Nature (IUCN), and the Taiwan blue magpie that, while it is on the “not threatened” list of IUCN, it is listed as a “Rare and Valuable Protected Species of Taiwan” and has been protected by the Cultural Heritage Preservation Act since 1989. Both species are endemic to Taiwan. We promise to maintain the landscape of Chung Chiang Park. We clean up the debris after the typhoon and preserve the cleanliness of its environment. Considering the importance of the ecology of Chung Chiang Park and the fact that the species that inhabit there are vulnerable to toxins, we avoid using insecticides and chemicals. We also insist on cleaning up tree leaves by manual labor to maintain the growth of plants on the ground. Additionally, we also provide green tour of TAIPEI 101. Institutions or groups can apply for such green tours. In 2013, we hosted 36 organizations, groups, and schools with visitors totaling 1,380 persons at no cost to them. This was the equivalent of a NT$200,000 in environmental education budget. Through green tours, visitors can gain deeper understanding of TAIPEI 101’s idea and actual practice as a green building. This service further helps us promote the idea of environmental protection and sustainable development. We understand that the structure of TAIPEI 101 and the selection of the construction and materials used will cause a direct or indirect impact on biodiversity. Other than reducing the greenhouse gas emissions and following sustainability purchase doctrines, we adopted the 4,644 square meters of green area in Chung Chiang Park on the fringe of Xinyi District to reduce the indirect impact that our company brought on biodiversity. We designated a corner in the lobby of the office tower as Green Corner, which is used as a space for promoting green building. The details include interactive films in which Green Damper Baby introduce the Green On project to visitors of the building. We also set up a Green On area on our official website and convey TAIPEI 101’s green experience to a wide range of internet users with lively animated film. We want to educate the general public to practice green living. 3.35 TAIPEI 101 Green Tour 3.34 The Maintenance Work at Chung Chiang Park 69 GRI G3.1 Index Chapter GRI Indicator About This Report 3.1, 3.2, 3.3, 3.4, 3.6, 3.7, 3.8, 3.10 Message from Chairman 1.1, 4.12 Message from CEO 1.1 1 Accountable Governance Business at a Glance Company Profile Honors and Recognition 2.1, 2.2, 2.4, 2.5, 2.6, 2.7, 2.8, 2.9, 4.13 2.10 Business Model Business Management Strategy 4.8 Market Overview 1.2, EC1, EC4, SO8, PR9 Corporate Governance EC DMA Governance Organization and Operation Mechanism 2.3, 4.1, 4.2, 4.3, 4.4, 4.5, 4.6, 4.7, 4.10 Corporate Social Responsibility Governance 4.9, 4.10 Risk Management and Response 4.11 Operating Risk Management Mechanism PR8 Safety Risk and Response EC2, LA9, PR1 3.5 Stakeholders and Material Issues Stakeholder Identification and Communication 4.14, 4.15, 4.16 Material Issues Identification 4.17 2 Harmonious Relationship Service High-Quality Tenants Grade A Service EC8, EC9 Tenant Events EC8 Tenant Satisfaction Survey PR5 LA DMA, HR DMA Looking After Our Employees Staff Profile EC7, LA1, LA2, LA13, HR4, HR6 Employee Relations and Rights EC3, LA3, LA15, LA4, LA5, LA6, LA7, LA8, LA9, HR5, 70 PR DMA HR7, HR9, HR11, CRE6 Human Resources Management EC5, LA3, LA14 Human Resources Development LA10, LA11, LA12, HR3 PR DMA Meeting Customer Needs Joyful Shopping Experience EC8, EC9, SO9, SO10, SO8, PR3, PR6, PR7, PR9 Exploring the Observatory EC8, EC9 Customer Complaint Mechanism Customer Satisfaction Survey PR5 4.12, EC8, EC9, SO DMA Creating Value for Taiwan Let the World See Taiwan Spread Love and Care for the Community SO9 Promote Taiwanese Culture, Arts and Food Sustainable Supply Chain EC6, HR DMA Supply Chain Management HR2, SO2, SO3, SO4 Sustainable Procurement Policy EN1 Improve Vendors’ Personnel Quality LA8, HR8 3 Green Homeland Green Earth EN DMA, EN28 Commitments to Mother Earth 4.12 CRE8 Recognition for Environmental Protection Environmental Performance EN3, EN4, EN8, EN16, EN17, EN19, EN20, EN22, CRE1, CRE2, CRE3 Green Building EC2, EC4, EN5, EN6, EN10, EN18, EN26, EN30 Green Shopping Mall EN5, EN6, EN18, EN26 Green Tourism EN7, EN18, EN26 Green Community EN11, EN12, EN13, EN14, EN15 GRI G3.1 Index 3.9 (See the data and figures for each indicator), 3.12 71 72 Taipei Financial Center Corporation 2013 Corporate Sustainability Report Issued by: Taipei Financial Center Corporation Issuer: Christina Song Advisor: KPMG Edited by: Address: Corporate Sustainable Development Team 59F., No.7, Sec. 5, Xinyi Rd., Xinyi Dist., Taipei City 110, Taiwan Phone:+886 281017777 Email: Website: Publication Date: [email protected] http://www.taipei-101.com.tw/csr.aspx?cid=8 August 2014 This report uses FSC certified paper and environmentally friendly soy ink.