Risk Management
In face of political and economic changes worldwide, GIS strives to identify and manage environmental, social, and economic (including corporate governance) risks that may impact the Company’s sustainability. The Board passed the "Risk Management Policies and Procedures" on August 5, 2022 as a major guidance for relevant efforts.
The company’s "Risk Management Policies and Procedures" are as follow︰
1. Construct and maintain an effective risk management structure, to ensure the integrity of risk management operations, implement a check and balance mechanism to enhance the efficiency of division of labor.
2. Establish and improve risk identification, measurement, supervision and control mechanisms to control risks within the company's tolerable range, achieve the goal of rationalizing risks and rewards, and enhance corporate value.
3. Establish communication channels and conduct appropriate risk communication and consultation with internal and external stakeholders to ensure the continued applicability and effective operation of risk management.
4. Shape risk management culture, enhance risk management awareness, and fully implement risk management.
The company's risk assessment process: includes the identification, measurement, response, supervision and communication of various risks. Understand each style clearly, control the scope of risks and carry out management measures such as PDCA.
In terms of organization, the Company’s Board of Directors is the highest body for risk management. Aimed to follow legal regulations and implement the Company's overall risk management, the Board has to be fully aware of operational risks, ensure the effectiveness of risk management, and take the ultimate responsibility for risk management.
Operations of Risk Management
Date | Meeting | Report/Discussion Subjects |
March 22,2024 | Risk management team | Report on the progress and implementation of the control implementation plan for the 15 risk factors assessed in 2023. |
May 14,2024 | Sustainable development committee | The convener of the risk management team reports to the Sustainability Committee on the progress and implementation of the company's control implementation plan for 15 risk factors. |
September 26,2024 | Risk management team | Report on the progress and implementation of the control execution plan for the 15 risk factors evaluated in 2023. Re-evaluate the various risk issues faced by the company in 2025: After analyzing the internal and external environment, the four major risks have been classified according to the operational, strategic, financial, and international economic aspects, and a preliminary control execution plan for 18 risk factors has been formulated. |
November 11,2024 | Board of Directors | The Sustainability Committee summarizes the company's three major annual risk issues (including product technology change risks, sales concentration risks, and geopolitical and economic risks) and their control implementation plans to the board of directors. |
In 2024, the Company carried out risk assessments of material topics based on the principle of materiality; relevant control plans and implementation achievements are as follows:
Aspect | Management Approach | Material topic | Control plan and implementation achievement |
Social Governance | Sustainable Strategies | •Compliance with social and economic regulations •Risk management | •In response to the risks of changes in market interest rates and exchange rates on the company's profit and loss, formulate hedging strategies and conduct hedging transactions for risky positions to reduce economic losses. → Implementation achievement:GIS's consolidated exchange profit from January to August 2024 is approximately NT$60 million. •Under the condition that the company can bear the risks and the costs are controllable, purchase commercial insurance to transfer the risks of force majeure such as accidents or natural disasters to insurance institutions. → Implementation achievement: Commercial insurance (including fire insurance and cargo transportation insurance) has been purchased. |
Environmental | Environmental Protection | •Legal compliance related to environmental protection •Air pollution management •Wastewater management | •Introduce TCFD climate-related financial disclosure system and ISO-14064 greenhouse gas inventory management system, identify climate risks and opportunities, formulate carbon reduction and carbon neutrality response measures, and publish TCFD report to stakeholders. → Implementation achievement:TCFD and ISO-14064 have been introduced, relevant information has been regularly released, and carbon reduction and carbon neutrality response measures have been formulated. •Regularly dredge sewers and rainwater ditches to prevent blockage. → Implementation achievement:Water and gas sound are monitored by qualified third parties every year. •Establish process water recycling system and rainwater recycling and reuse. → Implementation achievement:The construction of process water recycling system and rainwater recycling and reuse have been completed. |
Environmental | Energy Saving and Carbon Reduction | •Energy GHG Emission •Opportunities of CleanTech | •Build a solar power generation system, energy storage system and green power supply system in the factory. •Actively track the green power market and formulate an annual green power procurement plan before 2030 to reduce procurement costs. → Implementation achievement: The solar power generation system project of Taichung Houli Factory has been completed and can currently supply some electricity. |