Corporate Social Responsibility

The impact valuation analysis Innolux conducted in 2018 indicated that the upstream and downstream environmental impact was greater than the impact of company management. As a result, the Company took measures through the efforts of the Facility Engineering Committee, the Safety, Health, and Environmental Protection Committee, and the CSR Committee to promote green operations including pollution control, clean production, energy savings and carbon reduction, and green product management.
 
In 2018, the Facility Engineering Committee reviewed as many as 32 horizontal deployment projects and established 36 knowledge management documents. One example of these was the issue of zeolite rotor improvement at the Company’s Taiwan sites.
Environmental Expenditures

Following the establishment of the EPA’s Environmental Accounting Guidelines, Innolux was the first in the industry to introduce environmental accounting at each site in Taiwan and integrated it into the Company’s requisition and accounting systems. Environmental accounting has been established as an independent account to manage and identify the Company’s spending on environmental issues. The measure also encourages employees to come up with ideas for improvements in environmental management and end-of-pipe control. Subsequently, the concept of environmental accounting was also adopted by sites in mainland China for management optimization. In 2017, the cost of requisitioned items was classified and managed separately, and a number of environmental protection activities and improvement projects were promoted in 2018. Spending on environmental protection totaled around NT$1.968 billion at Taiwan sites and around RMB 7 million at mainland China sites.

 
Year Y2014 Y2015 Y2016 Y2017 Y2018
Environmental Expenditure
(NTD in 100 millions)
27.38 26.23 18.34 10.39 19.68
 

Environmental Protection Spending in 2018
Item/Year/Amount Taiwan Sites
(NT$10,000)
Mainland China Sites
(RMB 10,000)
Corporate Management Costs Pollution control costs: expenses for air, water, and waste pollution control 176,432 640
Recycling and reuse cost: expenses for recycling of water and chemicals, energy saving improvements, and sustainable utilization of other resources 240 5
Global environmental protection costs: expenses for greenhouse effect prevention measures 16,454 69
Environmental Protection Management Costs Environmental education and training costs: expenses for the acquisition of licenses and certificates, environmental monitoring, organization of related activities, and maintenance of environmental management systems 0 8
Environmental Protection Research and Development Costs Expenses for end-of-pipe treatment research, pollution reduction research, and marketing in pollution reduction research 2,077 20
Up- and Down-stream Supplier and Customer relations Costs Expenses for green purchasing, product recycling, packaging material recycling, and individual customer requirements 1,584 1
Social Activity Costs Expenses for public relations activities, corporate image promotion, and other social activities 31 0
Loss and Compensation Costs Expenses for pollution remediation, pollution lawsuits and compensation, and other losses and indemnities 0 0
Total 196,818 743