Corporate Citizenship Strategy

YFY is committed to a "People-Oriented" approach, deeply embracing humanistic care while fostering culture, reading, and learning as core aspects of its social investment strategy. We offer paid volunteer leave and support non-profit organizations through charitable donations of money and materials. Our goal is to build a "symbiotic" relationship with the community, going beyond mere cooperation to include close interaction characterized by mutual assistance and dependence. By harnessing the collective power of our enterprises and communities, we aim to address social issues collaboratively and create sustainable solutions.

To strengthen its connection with the community, each YFY factory site has established relationships with local neighborhood leaders, schools, and social welfare groups to develop an information exchange network. This network helps us understand and address the challenges faced by the local community. Through ongoing care and long-term investment, we strive to foster sustainable, mutually beneficial development for the community. YFY’s existing operational assets and projects under development in 2023 have not required community consultations due to any potential issues.

Social Engagement Priorities

Deeply Cultivating Environmental Education through Place-Based Learning “Living Forest: Reading  Sustainability Project”

In 2023, Chung Hwa Pulp Corporation Jiutang Plant, a subsidiary of YFY, along with the Kaohsiung Municipal Library, will continue the "Living Forest: Reading  Sustainability Project," which they have been jointly implementing since 2022. They will host a series of activities, including "Comics Love the Earth: A Short Story of Mom's Action Drama," "Hands-On Fun: Handmade Paper Experience Camp," "Knowledge Learning: Bookmobile / Forest Green Treasure / Wetland Reading Day," and "Animal Forest Library: AR Technology Reading." These events aim to foster unity among employee families and community residents, encouraging engagement and embodying the company's entrepreneurial spirit of local deep cultivation and community prosperity.

Social Welfare Donations

We continue to invest in social welfare through monetary donations, material contributions, and the allocation of time to support non-profit organizations. In 2023, our investment in social welfare will be nearly NT$120,000,000, bringing our total investment over the past three years to nearly NT$500,000,000.

Policy Influence

• Involvement with Associations and Non-Profit Organizations

YFY continues to leverage its corporate influence to foster communication and dialogue within the industry. We actively engage with industry associations and groups to stay informed about the latest international trends, risks, and opportunities. Additionally, we participate in public hearings, regulatory workshops, and other discussions, providing policy recommendations to the government to aid in policy development and implementation. We adhere strictly to the "Political Donations Act" and internal guidelines such as the "Integrity Management Code" and "Ethical Management Procedures and Behavior Guidelines" to maintain political neutrality.

• Actively involved in climate initiatives

In response to the Paris Agreement and Taiwan’s 2050 Net Zero Emissions goal, YFY promote climate and environmental management through the Environmental Sustainability Group under the Sustainable Development Committee. This group engages in negotiations with public departments and associations, operates under the supervision of the chairperson of YFY Inc., and reports regularly to the Sustainable Development Committee and the Board of Directors. In addition to continuously tracking the results of climate action implementation, we will align our efforts with the company's strategic goals when collaborating with public departments and associations. We will also evaluate the possibility of participating in other relevant public associations.

We actively participates in climate-related initiatives launched by domestic public associations or international organizations. The topics cover carbon fees, resource recycling, carbon sequestration in the paper industry, renewable energy, etc. Through actual participation or provision of support, YFY jointly promotes the formulation of domestic or regional policies and regulations.  Initiative themes for participation in 2023:

In 2023, the primary resources invested in trade associations or tax-exempt groups will exceed NT$2,300,000. The trend over the past four years is as follows:

Employee Information Statistics Category

YFY employs 10,288 people, with males comprising 70% of the workforce. Operations span Taiwan, mainland China, Vietnam, and the Netherlands. Employee composition is as follows :

OHS Policy

YFY, in collaboration with labor representatives, establishes the Occupational Health and Safety (OHS) Policy approved by the chairperson, aiming for zero major incidents. For other business groups, in accordance with article 42, paragraph 1, of the enforcement rules of the occupational safety and health act may be formulated according to the actual needs of the business entity to be completely or partially applicable to the business, and may formulate separately according to the nature of the work and size, and report to the labor inspection agency for future reference. We prioritize action plans in accordance with the YFY OHS Code, continuously improving our management system for better OHS performance.

OHS Management System

In alignment with SDG goals for good working conditions, health, wellbeing, and equality, We follow the "YFY Occupational Safety and Health Management Measures" and "Safety and Hygiene Code of Practice." Utilizing digital management systems, we oversee health, safety, emergency response, accident stats, contractor management, and access control. Occupational safety standards are integrated into procurement processes and contracts.

With the exception of the Investment Holding Office, various headquarters offices, and certain manufacturing sites due to differing operational natures, as well as some contractors and vehicle drivers who are not present full-time on-site, all other production locations comply with or exceed legal requirements and are certified to ISO 45001 for Occupational Health and Safety Management Systems. This certification ensures consistent management standards for all employees, contractors, security staff, logistics personnel, catering staff, and cleaning staff working on-site. The internal audit coverage of the Occupational Health and Safety Management System at production sites is 100%, encompassing over 10,000 workers, while third-party certification coverage is approximately 86%.

OHS Education and Training

We of fer diver se OHS educat ion through training sessions, instructions, and announcements. Every three years, we provide at least three hours of training and assess its effectiveness to boost employee knowledge and competence. We tailor training programs to local regulations, customizing them based on specific locations.

Establishment of OHS Committee by Labor and Management

To enhance communication, we encourage workers to provide input on employer's policies. Labor representatives, elected or nominated by unions, form the OHS Committee with management representatives like safety personnel and supervisors. Meetings occur quarterly, with Taiwanese labor members comprising over a third of total representatives, other regions comply with local regulations. They assess, coordinate, and advise on OHS matters.

Hazard Identication

YFY regularly hasdesignates trained safety personnel to identify hazards among 10,000 operations at all sites. This includes process review, on-site observation, and document veri cation to spot physical, chemical, biological, ergonomic, and psychosocial risks.

Risk Classication and Control

Hazards are assessed by frequency, severity, and risk weight to determine scores. The highrisk hazards with less-frequent inspection undergo prioritized audits. Trained personnel from each unit and location perform management audits.

Audit and Corrective Measures

YFY sites are audited annually, with surprise checks and environment monitoring. Non-compliance results in notications and deadlines for improvements, and follow-ups and re-inspections are done. Inspected sites must assign staff to accurately record non-compliance details and submit them to the OHS Office. The office assists in monitoring improvement progress. In case of immediate danger, the responsible person must quickly halt operations and take suitable actions to ensure staff safety.

Hazard Reporting Process

If workers face immediate danger and no action is taken to address it, they can repor t to their department head to halt operations. The relevant business unit must also be informed until the issue is resolved.If improvements aren't completed by the deadline, report to the OHS Center for enhanced risk management measures and share results with the relevant business unit.According to the "Safety and Hygiene Code of Practice," workers encountering hazards can halt operations and repor t to the site's responsible person without risking others. We safeguards workers' rights and privacy to prevent retaliation.

Incident Response and Management

In case of a workplace accident, the company's safety personnel, workplace manager, and worker representatives categorize it from level one to four. They then report, investigate, analyze, and devise response strategies. For major accidents (level four), the plant's emergency team takes action, reports to the emergency platform within 60 minutes, investigates causes, analyzes hazards, confirms conditions, assesses measures, and proposes improvements within a week to prevent recurrence.

Human Capital Development

Talent cultivation is a major goal of YFY. To enhance Taiwan's talent competitiveness and in response to the global emphasis on ESG and DEI, YFY Inc. has officially announced its renewed commitment to the "2024 TALENT, in Taiwan, Taiwan Talent Sustainability Action Alliance." We are dedicated to creating a diverse, equal, and inclusive workplace. Additionally, we continually measure the effectiveness of our human capital investments. For more details, please refer to 2023 Sustainability Report of the human capital investment return rate in the appendix.

Nurturing and Development

 To ensure the sustainable development of our company and to effectively face the various challenges of the market and industry environment, we hold strategic development consensus meetings for management, revise training and development regulations, and conduct competency assessments at all levels. Through systematic and continuous talent cultivation programs, we aim to inspire our employees to fully realize their potential and enhance their performance.

Diverse Learning Environment

YFY provides a variety of learning resources, including training for new employees, management, professionals, and general education, aimed at fostering self-improvement among our workforce. In 2023, over 73,000 people participated in educational training, with total expenditures exceeding NT$14 million. For detailed training results, please refer to the appendix on social data.

YFY Learning - Cloud Library

Employee Development Programs

To enhance organizational competitiveness, we are dedicated to implementing continuous talent development programs.

Employee Benefits

YFY supports the UN Global Compact principles and adheres to the UN Declaration of Human Rights and ILO conventions. We have developed a chairperson-approved human rights policy to protect the rights of employees, contractors, temporary staff, and interns for a respectful work environment. We train and communicate to eradicate human rights violations within our operations, as well as those of our suppliers and partners. We prohibit discrimination, ensure equal remuneration, respect freedom of association and the right to collective bargaining, and oppose human trafficking, forced labor, and child labor.

Human Rights Due Diligence Process and Assessment

Human Rights Due Diligence Process and Assessment

Anti-Discrimination/Harassment

YFY enforces a non-discrimination and anti-harassment policy to ensure a harassment-free workplace.We provide regular education and training on gender and sexual orientation equality, as well as sexual harassment prevention, for employees, supervisors, and staff involved in addressing sexual harassment complaints. It's mandatory for everyone to pass this training, and we ensure 100% participation. Relevant information is publicly disclosed in prominent locations. YFY has established a sexual harassment complaint channel managed by the human resources department to handle complaints. Alongside setting up a complaint handling team appointed by the general manager, comprising current employees, experts, or scholars, we also engage external professionals with expertise in gender issues to serve on the investigation team.Aligned with updated government laws and regulations, we continuously develop and implement measures for preventing, investigating, and addressing complaints effectively. Case-speci c measures ensure privacy and rights protection. There were no incidents of discrimination or harassment requiring review in 2023.

Freedom of Association

 YFY has labor unions in various regions, covering 56.53% of employees. Regular meetings allow union reps to voice employee demands to senior management. No signed collective bargaining agreements due to open and effective communication channels. For non-union plants, regular labormanagement coordination meetings occur. YFY respects and responds to demands, promoting labor-management communication. For changes, Article 20 of Labor Standards Act or local laws is followed, with advance communication and counseling programs. There were no adverse reactions from employees or infringements on employees' rights and interests in 2023.

Diversity and Equality in the Workplace

YFY is dedicated to cultivating a diverse workplace environment that encompasses a balanced labor structure across gender, age, professional fields, nationality, and inclusion of individuals with disabilities. We actively assess gender diversity among our employees, particularly focusing on the representation of women in management roles across various levels. This commitment extends to promoting gender balance within our talent reserve initiatives.

Share of Local people in Middle and Senior Management Positions

Since 1984, YFY has been exporting complete plants internationally, sharing our expertise in the paper industry. We also focus on developing local talent, promoting them to management positions.

Salary System

YFY maintains a balance between external business and internal fairness by implementing a comprehensive system for salaries, welfare, and performance. We exceed legal leave requirements and share profits to attract, retain, develop, and motivate talent. Employee compensation at YFY is based on market surveys, taking into account education, experience, skills, and roles. Promotions lead to immediate salary adjustments, without any bias towards gender or age. From 2021 to 2023, annual salary adjustments ranged from 2-3% of the total employee salary. According to YFY’s Articles of Association, one-thousandth of profits must be allocated to employees in profitable years. Bonus criteria are based on both company and individual performance, aligning with market norms to encourage contributions and growth.