Governance Framework
The Governance Framework to Promote Sustainable Development
Following the vision and mission of the Company's ESG policy, it has chief corporate governance officer and a dedicated CSR office in CEO’s Staff Office, which is run by senior management who is authorized by the board of directors and reports to the board of directors, to promotes the corporate social responsibility. At the same time, the departments of human resources, general administration, procurement, equipment and utilities, factory management and other units implement the corporate social responsibility in the practical affairs under their scope of duties and responsibilities.
In order to further improve the Company's organization for promoting sustainable development, the "Sustainable Development Committee" was established in 2022, which is the top authority on issues of sustainable development. It has been upgraded to become one of the functional committees of the board of directors in August 2023. The committee presided by the chairperson who collaborate with a number of senior officers in different functions review the Company's core operating capabilities and formulate medium-term and long-term plans for sustainable development.
The "Sustainable Development Committee" serves as a cross-departmental communication platform integrating a variety of different departments vertically and horizontally. Through regular meetings and task groups responsible for different issues, the committee identifies the sustainable issues related to the Company’s operations and its stakeholders, formulates corresponding strategies and work guidelines, compiles each organizations’ budgets for sustainable development, plans and implements annual projects and tracks the implementation results to ensure that the sustainable development strategy is fully implemented in the Company's daily operations.
The chairperson of the "Sustainable Development Committee" is expected to report to the Board of Directors on the implementation results of sustainable development and future projects. The first meeting was held on May 17, 2023. The agenda of the meeting includes (1) identifying material topics of sustainability that need our attention, and formulating action plans to deal with them; (2) setting up the goals and policy on issues related to sustainable development; (3) supervising implementation of issues on sustainable management and assessing their results; (4) annual report on stakeholders management; (5) report on the introduction and implementation of TCFD (Task Force on Climate-related Financial Disclosures); (6) annual report on environmental protection management; (7) annual report on promoting employee well-being and safety; (8) annual report on social philanthropy and charity; (9) annual report on risks management; (10) amendment of the “Sustainable Development Best Practice Principles”. The second meeting was held on August 10, 2023, in which the 2022 sustainability report was presented.
The board of directors has listened to the report of the sustainable development committee. In response to the material topics of sustainable development, the corresponding action plans, the goals and policies of sustainable development, the implementation of sustainable issues, etc., which are proposed by the sustainable development committee, the board of directors has reviewed the probability of success for these strategies. The progress of their implementation is also frequently reviewed in the follow-up, and the management team is urged to make adjustments when necessary.