Corporate Social Responsibility

Occupational Hazard Management
Since 2016, Innolux has developed a smart mobile EHS management system and established performance indicators for the sites’ EHS and risk management. This aims to improve the EHS management and risk management capacity as well as keep track of developing trends. In 2019, further effort has been invested to plan and develop the smart triple-safety platform and expand the warning system. “On-demand, target-driven and trend-aware” are defined as the core management objectives needed to improve information circulation and management efficiency, thus shaping the Company’s EHS management culture.
 
Occupational hazard analysis shows that the disabling injury frequency rate (FR) and disabling injury severity rate (SR) at Innolux have consistently declined since 2013. By 2018, the disabling injury frequency rate and disabling injury severity rate had dropped to 0.22 and 5, respectively, with zero workplace deaths. Compared with 2017, the disabling injury frequency rate and disabling injury severity rate in 2018 dropped by 4% and 17%, respectively. Production process automation has been adopted at each site to minimize operational hazards caused by man-machine interaction and to reduce human factor hazards. Moreover, in EHS performance management, the Company has encouraged employee participation by putting forward proposals with regard to the improvement of equipment safety and increasing the proportion of information shared through the Parallel System. To make further improvements in 2019, each site will continue to set the annual targets for lost workday case rate and restricted workday case rate.
 

Contractor Management
In addition to regular two-way communication meetings and construction safety courses conducted to enhance contractor EHS management and awareness, some Innolux sites have urged contractors to adopt RFID systems for smart management as well as establishing measures for issuing warnings and handling abnormal personnel activities, cross-district operations and overtime operations of contractors. With high-risk operations, such sites have also collaborated with contractors and worked out operational hazard identification measures, risk assessment & analysis procedures, and emergency response plans. Investigation and analysis of accidents and execution of corrective and preventive measures are conducted with Innolux’s “Electronic Accident Management System”. In 2018, the work-related fatality rate of contractors was zero. Although the accident frequency rate of 0.47 and incident rate of 0.09 in 2018 were higher than the 0.31 and 0.06 in 2017, the lost day rate of zero in 2018 was lower than the lost day rate of 2 in 2017.

Statistics on Contractor Accidents at Taiwan Sites
 
Item 2017 2018
Total Female Male
Contractor accident frequency rate
(per one million work hours)
0.31 0.47 0.00 0.61
Incident rate (per 200,000 work hours) 0.06 0.09 0.00 0.12
Lost day rate 2 0 0 0
Work-related fatality rate 0 0 0 0
Data coverage: Contractors working at Taiwan sites
Occupational Safety and Risk Management
Between 2014 and 2017, Innolux completed the overall risk inventories, thematic audits on the reliability of productive equipment & safety facilities, audits on loss prevention, risk & safety management, special projects for loss prevention, and accident reduction at each site. In line with its pursuit of innovativeness, consistent development, and sustainable management, Innolux reviewed upcoming changes, including the expansion of plants and adoption of new production processes, and also inventoried fire and natural disaster risks in 2018. Special projects for prevention of fires and the mitigation of damages in natural disasters were launched to reinforce risk management across the board and improve the Company’s risk appetite and its capability to recover.

1. Loss Control Inspection Improves KPI Achievements
Innolux continues to include items found requiring improvement in the loss control inspection in its next annual KPIs. In 2018, the KPI focus was set on day-to-day operations of loss prevention (such as automatic loss prevention inspections, fire safety management, loss prevention training, etc.) and loss prevention engineering reinforcement (including quake-proof measures for non-structural elements, fireproof sealing, explosion-proof measures for electrical appliances, etc.). A total of 116 items were completed and the annual target was achieved.

2. Loss Prevention Risk Inventory
The Company has implemented risk inventory projects to examine hardware facilities changed or added to accommodate new production processes and production needs in Taiwan and Mainland China sites, including the condition of plant structures, fire equipment and systems, site equipment and systems, and production equipment. All defects found have been adopted for future reference.

3. Fire Prevention Projects
Inspections of individual fire protection measures have been carried out in Taiwan and Mainland China sites. Past fire accidents in the industry, new production processes/equipment operation and high-risk operation zones have been reviewed to identify potential fire hazards and establish preventive measures. Meanwhile, projects have also been launched to analyze fire risks and simulate fire scenarios at Taiwan sites to determine the best countermeasures for fire damage control and response procedures; these can serve as future references for the establishment of business continuity plan and disaster recovery plan.

4. Natural Disaster Mitigation Projects
To understand the risks and reduce the impacts of natural disasters at sites in Mainland China, Innolux has consolidated the natural disaster risk assessments (including storms, floods, lightning strikes and snow disasters) from Munich Reinsurance and Swiss Reinsurance and used the results to perform on-site surveys, evaluate natural disaster risks at sites in Mainland China, identify the weaknesses of each site when encountering natural disasters, as well as integrate and improve risk control measures to minimize the impact of business disruptions caused by natural disasters.

5. Loss Prevention and Risk Control Management Guidelines
To accommodate the Company’s pursuit of sustainable development and its green energy policy, each site has evaluated the feasibility of installing solar (photovoltaic) panel systems; to assure the safety of such systems, related protective measures have been taken into account. Risk assessments have been conducted according to the properties of solar panels and the “INX Solar Panel Installation Safety Regulations” have also been established to serve as the safety guidelines for the installation and risk control in future operation.