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 27, 2025 | Risk management team | Reported on the progress and implementation status of the control execution plans for the 18 risk factors assessed in 2025. |
May 12, 2025 | Sustainable development committee | The convener of the Risk Management Team reported to the Sustainable Development Committee on the progress and implementation status of the control execution plans for the 18 risk factors. |
September 25, 2025 | Risk management team | ・ Reported on the progress and implementation status of the control execution plans for the 18 risk factors assessed in 2025. ・ Re-evaluated the Company’s risk issues for 2026: Following internal and external environmental analyses, risks were categorized into four major groups: operational, strategic, financial, and international economy, then preliminary control execution plans for 18 risk factors were prepared. |
| November 7, 2025 | Sustainable development committee | ・ The convener of the Risk Management Team reported to the Sustainable Development Committee on the progress and implementation status of the control execution plans for the 18 risk factors. ・ The convener of the Risk Management Team reported to the Sustainable Development Committee on the re evaluation of the Company's risk items for 2026 and the preliminary control execution plans for 18 risk factors. |
November 11,2024 | Board of Directors | The convener of the Risk Management Team summarized the Company's three major risk issues of the year, including product technology changes risk, sales concentration risk, and geopolitical and economic risk, along with their corresponding control implementation plans for presentation to the Board of Directors. |
2025 Performance
In 2025, 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 continued to conduct hedging activities in 2025, resulting in no foreign exchange losses. •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 | Energy Saving and Carbon Reduction | •Policies related to financial impacts, including carbon footprint disclosure and carbon fee collection. | •Introduce the Task Force on Climate-related Financial Disclosures (TCFD) framework and the Taskforce on Nature-related Financial Disclosures (TNFD) framework. → Implementation achievement:GIS disclosed TCFD and TNFD reports in its 2025 Sustainability Report. |
Environmental | Environmental protection | •Hazardous Chemical Management | •Chlorine gas is a regulated toxic chemical substance. A permit must be obtained, and operators are required to hold the appropriate certification. → Implementation Performance: The Company has obtained the permit for toxic chemical substances and completed chlorine gas control measures and emergency response drills. |