Dec 12, 2019 — About this report. Report Scope. Time: From 2018.01.01 to 2018.12.31. Scope: Financial data presented in this report reflects performance of.
2019 MSI CSR Report
MICRO-STAR INTERNATIONAL CO.,LTD.
2019 MSI CSR Report
About this report
Report Scope
Time: From 2018.01.01 to 2018.12.31 Scope: Financial data presented in this report reflects performance of the parent company and its subsidiaries. (about the scope detail please refer to 2018 annual report https://tw.msi.com/about/investor). For nonfinancial data, the boundary of this report covers Micro-Star INT'L Co., Ltd. (MSIT), MSI Computer (Shenzhen) Co., Ltd. (MSIS), and MSI Electronics (Kunshan) Co., Ltd.(MSIK)(The three facilities are referred to as "MSI Group or MSI").MSIS and MSIK do not provide information on the number of employees due to the confidentiality of the customer contract.Unless elsewhere specified, information will be disclosed in the report. There is no change from the 2017 Reporting scope.
Report Outline
MSI's CSR report addresses core indicators from the Global Reporting Initiative (GRI) GRI Standards guidelines-Core Options and the Taiwan Stock Exchange Corporation Rules Governing the Preparation and Filing of Corporate Social Responsibility Reports by TWSE Listed Companies. This report discloses our business activities, strategies and management performance addressing the most significant corporate social responsibility (CSR) issues. The reference table of GRI Standards has been attached as an appendix to this report.
Report Assurance
Internal review:
MSI focuses on the economic, environmental and social issues of CSR. We collected CSR issues of concern to our stakeholders through questionnaires, interviews, e-mails and annual supplier workshop. These issues are then evaluated by MSI's Corporate Sustainability
2
Office, which is responsible for overall planning, data collection, internal communication, and compiling/editing/verifying content for a CSR report. The completed CSR report is then forwarded to the CSR Report Team for final review and submitted to the Chairman for approval before publication.
External assurance:
The Report is in compliance with the core options in the GRI Standards guidelines, and an independent third party (BSI Pacific Limited, Taiwan Branch) has been engaged to provide assurance for moderate assurance level in AA1000AS-2008 Type 1.The independent assurance opinion statement has been attached as an appendix to this report.
Data verification:
The data relating to ISO of qualityenvironment and power managementfinancial and greenhouse gas emission standards have been verified by third parties.
Item
Verification / Certification
Financial Data
PwC Taiwan
Quality management systems (ISO 9001)
Environmental management international standards (ISO 14001)
Greenhouse gas emissions (ISO 14064-1)
Occupational safety management 9OHSAS 18001) Hazardous substance process parties management system
(IECQ/QC 080000)
Bureau Veritas Certification(BVC) Co., Ltd.
The requirements of a quality management system for
organizations in the automotive industry (IATF 16949)
Telecommunications Quality Management System (TL 9000)
The list is the MSIS verifications.
Energy management systems (ISO 50001)
Testing and calibration laboratories (ISO 17025)
Responsible Business Alliance (RBA)Validated Audit Process (VAP)
Centre Testing International (CTI)
China National Accreditation Service for Conformity (CNAS)
Elevate limited
Date of Issuance
Since publishing our first CSR Report in 2008, to this date, MSI has continued to publish CSR Report on an annual basis. All of the past Reports are publicly available for viewing for all stakeholders around the world on the MSI website with both English and Traditional Chinese versions available.
CSR Report downloads
TWSE Code: 2377 http://mops.twse.com.tw/mops/web/t100sb11
http://tw.msi.com/html/popup/csr_tw/index.html
Current issued version
June 2019
Last issued version
June 2018
Next issued version
Eexpected in June 2020
MSI Sustainability Performance Highlights in 2018
The Corporate Citizen Award of CommonWealth Magazine for the
ten year in a row.
No.20 interbrand at the Best Taiwan Global Brands 2018
Awards.
MSI GAMING has the most queries at Google
The MSCI Taiwan Index
Contact information
CSR Contacts Address email
Micro-Star INT'L CO., LTD. Corporate Sustainability Office
No. 69, Lide St., Zhonghe District, New Taipei City 235, Taiwan (R.O.C.) csr msi.com
The ranked number 1 Gaming Laptop Brands 2018 by PC Magazine
MSI was ranked top 6%-20% public companies list of The 5th Corporate Governance Evaluation held by Taiwan Stock Exchange (TWSE).
Selected as TWSE CSR index : Taiwan Corporate Governance 100 Index The Taiwan HC100 Index Taiwan RAFI EMP 99 Index
Environmental Performance:
Giving Back to Society:
The energy saving in 2018 decreased 6.41% compared to energy consumptions in base year (2007).
The public welfare program completed 37 projects during the reporting period.
The intensity of Greenhouse Gases emissions in 2018 decreased 4.74% compared to emissions in base year (2007).
The number of benefit students for education cares: A total of 12,717 students received education services.
The recycled water usage in 2018 increased 37.58% compared to the last year.
Issued the 9th edition of the Standard for Environmentally Friendly Products, and completed 10,890 parts approval, identified and managed 284 hazardous substances.
The number of benefit students for school lunch: A total of 6,911 students participated in the event.
The number of corporate volunteers: The MSI employees attended by a total of 1,235 participants.
2019 CSR 3
2019 MSI CSR Report
Letter from the Chairman and General Manager (CEO)
Message from the Chairman and General Manager (CEO)
Growing with Innovation-Creating Value Together
Looking back on 2018, MSI encountered tremendous challenges as the tensions from the China-U.S. trade war worsened and economic growth in the EU stagnated. The overall PC market has also exhibited saturation with slight overall declines. Fortunately, this has been offset by a growing demand for e-sports which remained strong while tournaments and live streaming platforms became even more common. Consequently, demand for mid-to-high-end PCs and peripherals increased. Since the second half of 2017, the demand for graphics cards driven by cryptocurrency has reversed rapidly, but it has caused the high-end graphics card market (which was originally caught in the cryptocurrency mining boom and was in short supply) to refocus on the normal e-sports market demand. MSI has long been cultivating its products for highend e-sports, including developing gaming PCs and peripherals that meet players' high expectations. The Company has also responded to the needs of content creators by introducing high-end image processing solutions. Meanwhile, the Company made significant progress in other fields such as servers, industrial computers, auto electronics and AIoT-all of which have increased momentum for the Company's growth prospects in the future. The Company delivered record-high consolidated revenues and profits in 2018, and intends to continue these accomplishments in 2019 by enhancing R&D, manufacturing, and sales capacity. With the introduction of comprehensive e-sports products, combined with commercial and software solutions-we strive to create greater value for the Companyour customers, and shareholders.
4
Charles Chiang MSI General Manager (CEO)
Joseph Hsu MSI Chairman
Public Welfare Care-Common Good
MSI utilizes a pragmatic approach and has long been a dedicated promoter of social enterprises that provide lunch, education, donations, and aid for the underprivileged. By caring and engaging the local community, we hope to contribute positive change and create recurring positive feedback that realizes our Common Good vision. In 2018, under the premise of fairness, reasonableness, and equality, MSI launched a Diversified Teaching and Inclusive Learning program aimed at offering budget and equipment to support high-quality education. In addition to improving the quality of education in remote locations, the program is also aimed at inspiring creativity and helping students develop problem-solving skills, self-initiative, as well as
independent thinking. This program sponsored more than 100 schools and benefited more than 5,000 students during this reporting period.
Sharing the Concepts-Enhancing Business Development
MSI has been shifting its business focus towards e-sports in recent years. In addition to promoting the e-sports brand, MSI has also committed substantial resources and expertise into training e-sports talent through academia and industry cooperation with the goal of adding more e-sports talent to expand the ecosystem and build brand loyalty among new users on campuses. MSI has successfully assisted Nan Chiang Vocational High School, Chiao Kuang Senior High School, Chi-Ying Senior High School, Wan-Neng Senior Industrial and Commercial Vocational School and Shih Hsin Senior High School to establish e-sports classrooms, with Shih Hsin Senior High School being the only pilot e-sports institution recognized by the Department of Education. Through these efforts, we aim not only to help students develop hobbies free of discrimination, but also to improve the effectiveness and sustainability of the e-sports industry to share economic value and development benefits with the industrygovernment-academia.
Positive enterprising-Link up with the world
In 2018, MSI had another fruitful year in terms of its operating performance. While we strive to ensure continuity of our financial success, we also recognize the importance of adopting international practices including climate change guidelines, a code of conduct, GRI standard, and rules on issues that pertain specifically to electronics manufacturers such as conflict/high-risk minerals (e.g., Tungsten) and RBA (Responsible Business Alliance) initiatives. MSI has devoted longterm attention to these initiatives and has set goals to build competitive
advantage based on corporate social responsibilities. In the future, MSI will continue seeking business growth through its focus, innovation, and influence while at the same time supporting sustainability of the environment and society, thereby creating higher long-term value for our stakeholders.
2019 CSR 5
2019 MSI CSR Report
Table of Contents
1. Corporate Sustainability Development
8 4.3 Hazardous Substances Management
56
1.1 MSI Corporate Social Responsibility Commitmen
8 4.4 Supplier Management
57
1.2 Sustainable MSI blueprint
8 4.5 Customer Services amd Satisfaction
63
1.3 Stakeholder Identification and Issues
11 5. Environmental Value
68
1.4 Identification of sustainability development Issues
12 5.1 Environment Management Policy
68
1.5 The Scope and Boundary of Material Topics in the Report 13 5.2 Climate Change Management
70
2. Corporate Governance
16 5.3 Greenhouse Gas Management
72
2.1 Company Overview
16 5.4 Energy Management
74
2.2 Financial Performance
19 5.5 Pollution Prevention
76
2.3 Governance Structure
20 5.6 Water Management
78
2.4 Risk Management
21 6. Love in MSI
80
2.5 Business Ethics
23 6.1 Remote Locations Care-School Lunch Fund
80
2.6 Legal Compliance
25 6.2 Sharing Good of Learning-Pluralistic Educational
80
2.7 Relations with Associations
26 6.3 Flip Life-Disadvantages Groups Help
83
3. Employee Value
28 6.4 Social Engagement-Common Good
86
3.1 Employee Policy
28 6.5 Cherish Natural Resources-Environmental Friendly
88
3.2 Employee Profile
33 6.6 Community Relations-Resource Donation
89
3.3 Employee Development
35 6.7 Instant Care-Emergency Assistance
90
3.4 Employee Relations
37 Annex I. GRI Standards Content Index (2016)
91
3.5 Healthy Workplace
38 Annex II. ISO 26000 Index
93
3.6 Occupational Safety and Health
42 Annex III. United Nation Global Compact Comparison Table 94
4. Product Value
50 Annex IV. Assurance Statement
95
4.1 Product Sustainability
50
6 4.2 Product Responsibility
53
1. Corporate Sustainability Development
2019 MSI CSR Report
1. Corporate Sustainability Development
1.1 MSI Corporate Social Responsibility Commitment
With the corporate vision ofInnovation of Smart TechnologyFulfillment of Corporate Social Responsibility and Win-Win GrowthMSI strives to build a sustainable business value and takes on the responsibilities and missions of social care, environmental protection, employee care, shareholder commitment, and customer trust. In the implementation of corporate social responsibility (CSR), the Company's Board of Directors has authorized the General Manager (CEO) to direct each specialized (semi-specialized) unit, and has set up a sustainable development office to implement partial corporate social responsibility related matters.This will incorporate corporate social responsibility into the corporate vision and business philosophy.
Corporate Social Responsibility Vision
Sound Sustainable GovernanceEnvironmental Sustainability and Socialty Common Good form the core of MSI's CSR vision; they are the motivation that drives the company towards seeking balance between business, society and the environment, further setting model example for the good corporate citizen.
Corporate Social Responsibility Mission
Bussiness Ethics
Guidence: MSI values integrity and corporate governance, and makes ongoing attempt to improve governance performance, protect stakeholders' interest and bring positive influence to the society.
Environmental Sustainability
Guidence: MSI is committed to mitigating the environmental impacts of its business activities through green production and supply chain management. The company has invested actively into improving energy consumption, waste reduction and chemical substance control in response to climate change risk.
8
Social Care
Guidence: MSI upholds the public welfare concept of Change progresses constantly Service continues silentlyContribution accumulates and Dreams realize step by stepand have been targeted to address issues concerning education care, caring for the disadvantaged, giving back to the community and resource donations. Through financial aids, volunteer activities and donation of supplies, we contribute our efforts toward building an inclusive society.
1.2 Sustainable MSI blueprint
MSI realizes its corporate vision of sustainability by adopting green management, sustainable governance practices and environmental sustainability. Meanwhile, we combine UN Sustainable Development Goals (Sustainable Development Goals, SDGs) to continually evaluate and review issues that are relevant to MSI's operations.We has formulated 6 sustainability targets relevant to MSI, and all of which are disclosed in this report.
United Nations Sustainable Development Goals (SDGs) and implement the core concept
UN SDGs
ITEM
MSI Core Beliefs
GOOD HEALTH AND WELL-BEING
Ensure healthy lives and promote wellbeing for all at all ages
3.9 By 2030, substantially reduce the number of deaths and illnesses from hazardous chemicals and air, water and soil pollution and contamination.
Minimize substances of negative environmental impact; prohibit/restrict use of hazardous chemicals and implement end-of-life product recycling for the benefit of the environment.
Related Report Sections
4.1 Product Sustainability 4.3 Hazardous Substances Management
QUALITY EDUCATION
Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all
4.5 By 2030, eliminate gender disparities in education and ensure equal access to all levels of education and vocational training for the vulnerable, including persons with disabilities, indigenous peoples and children in vulnerable situations.
Assure the underprivileged and employees access to inclusive and fair education and vocational training; promote life-time learning and encourage contributions to sustainability.
3.1 Employee Policy 6.2 Sharing Good of LearningPluralistic Educational
DECENT WORK AND ECONOMIC GROWTH
Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
8.5 By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value. 8.7 Take immediate and effective measures to eradicate forced labor, end modern slavery and human trafficking and secure the prohibition and elimination of the worst forms of child labor, including recruitment and use of child soldiers, and by 2025 end child labor in all its forms. 8.8 Protect labor rights and promote safe and secure working environments for all workers, including migrant workers, in particular women migrants, and those in precarious employment.
Achieve full and productive employment and decent work for all women and men, and equal pay for work of equal value; secure the prohibition and elimination of child labor and forced labor; protect labor rights and promote safe and secure working environments for all workers.
3.1 Employee Policy 3.2 Employee Profile 3.6 Occupational Safety and Health
Page
46 51
28 70
28 32 40
SUSTAINABLE CITES AND COMMUNITIES
Make cities and human settlements inclusive, safe, resilient and sustainable
11.6 By 2030, reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management.
Minimize damage to the environment; improve mankind's living environment in terms of inclusiveness, safety and sustainability, and pay special attention to air quality, pollution prevention and waste management.
5.5 Pollution Prevention
66
12.2 By 2030, achieve the sustainable management and efficient use
RESPONSIBLE CONSUMPTION AND PRODUCTION
Ensure sustainable consumption and production patterns
of natural resources. 12.4 By 2020, achieve the environmentally sound management of chemicals and all wastes throughout their life cycle, in accordance with agreed international frameworks, and significantly reduce their release to air, water and soil in order to minimize their adverse impacts on human health and the environment. 12.5 By 2030, substantially reduce waste generation through
Improve the ways natural resources are utilized to minimize environmental impacts of production and consumption activities. Reduce use of chemicals and minimize waste
through preventive, reduction, recycling and reuse measures, and thereby mitigate negative impacts on health and the environment.
4.1 Product Sustainability 4.3 Hazardous Substances Management
46 51
prevention, reduction, recycling and reuse.
CLIMATE ACTION
Take urgent action to combat climate change and its impacts
13.3 Improve education, awareness raising and human and institutional capacity on climate change mitigation, adaptation, impact reduction and early warning.
Conduct identification mechanism of risks and opportunities 5.2 Climate Change
on impacts of climate change in early alert stage to raise crisis Management awareness; adjust energy/resource efficiency throughout the 5.3 Greenhouse Gas organization and across product lines; enhance responsiveness Management
61 62
of employees, operations and products.
2019 CSR 9
2019 MSI CSR Report
MSI Sustainable Development Goals
As a global citizen, MSI recognizes the importance of fulfilling SDGs through the corporate's commercial activities in addition to government policies. For this reason, the Company took extra steps to review the implications of SDGs and made feasible adjustments to business plans and internal operations, and devised MSI's own sustainability goals to ensure MSI's sustainable operations continue to progress.
SDGs
Strategic Indicator
GOOD HEALTH AND WELL-BEING
RESPONSIBEL CONSUMPTINO AND PRODUCTINO
Green management
Development Goals
Reduce use of hazardous substances; aim to increase the weight of halogen-free items in the bill of materials (BOM) to more than 85% for main products by 2030.
SUSTAINABLE CITIES AND COMMUNITIES
Environmental sustainability
Complete labeling and document disposal and recycling of all products and equipment. MSI has been able to maintain its recycling rate above 90% on a yearly basis, which exceeds EU WEEE's stage 3 requirements of 80%.
CLIMATE ACTION
DECENT WORK AND ECONOMIC GROWTH
QUALITY EDUCATION
Environmental sustainability
Sustainable governance
Sustainable governance
Mitigation of global warming impacts, MSI aims to reduce GHG emission by 50% and energy consumption of main products by 20% before 2025.
The external power supply increased the average efficiency of external power supply conversion from 88% to 89% compared to energy efficiency in 2015.
Responsible purchase of minerals - MSI supports the Conflict-Free Smelter Program and aims to source all TantalumGoldTin and Tungsten from smelters certified by Conflict Free Sourcing Initiative (CFSI) by 2025.
Protection of labor rights and promotion of safe working environment - MSI aims to maintain injury frequency rate (FR) at 1.17, injury severity rate (SR) at 5 and achieve zero workplace hazard each year.
Remote Areas Care - MSI provided after-school assistance to 12,717 students in remote areas during the reporting period, and will continue investing resources to eliminate the resource and learning gaps between urban and suburban areas.
MSI encourages employees to learn comprehensively, and aims to develop robust training programs and goals that not only support employees' requirements, but also provide them with the right motivation to learn. We hope to see employees' learning progress reflected in their work performance, and they can recognize MSI's core value and commit to serve within the organization over the next 3-5 years. Employees averaged 8.48 years of service in 2018.
SDGs action
Incorporate the use of halogen-free
materials in products
Registration and reporting as an EU
certified recycling firm
Product WEEE 3R report assessment
Targets have been set to reduce GHG
emission by an average of 4% per year
Introduce eco-design product for
lower energy consumption
Adopt the use of external power
supplies with energy efficiency rated VI in products.
Perform supplier smelter survey on a
yearly basis
Enforce workplace safety
management and aim for zero accident and zero workplace hazard.
Sponsor quality education by offering
financial and equipment support.
Continually offer on-job training
courses and overseas transfer opportunities to retain employees.
10
1.3 Stakeholder Identification and Issues
·Stakeholder Identification Based on the responses gathered through online questionnaire and information consolidated by the Sustainability Development Office, the CSR Working Team conducted a series of discussions and assessments using the responsibilityinfluenceresponsiveness and materiality principle and was able to identify 7 main stakeholder categories given MSI's industry characteristics and practical experience. These stakeholders are: investors/shareholderscustomerssuppliersemployeesmediagovernment agencies and non-profit organizations (NGOs). A new stakeholder category - NGO has been added to this year's report to facilitate more completetimelytransparent and accurate exchange of information, opinions and interaction with report users.
·Materiality Issues MSI pays constant attention to changes in corporate responsibilities and engages stakeholders in ongoing exchange of opinions. During the reporting period, a broad variety of communication channels, both regular and unscheduled, were utilized to respond to stakeholders' concerned issues. We will continue to investigate and respond to stakeholders' concerned issues, and disclose the progress and implications of our communication through corresponding chapters of this report.
Stakeholder Engagement-Communication Channels and Frequency
Stakeholder
Shareholder/ Investor
Customer
Supplier
Employee
Communication Channel
Shareholder meetings Investor conferences Annual report MSI website Market Observation Post System CSR report
Customer service website Customer satisfactory survey Internal contact person Service Center Social media 0800 Phone call service MSI CSR website
Green Product Management Supplier Conference Supplier questionnaire Onsite audit supplier/Supplier assessment
Employee opinion box Employee EAP Mobile APP Enterprise information portal (EIP) Employee satisfactory survey
Frequency
Annually Irregular Annually Irregular Irregular Annually
Immediate Irregular Office hours Office hours Immediate Daily(specific Immediate
time)
Issues
Response
Company vision and governance
Business operation overview
Business performance Risk Management
The executive management team meets regularly every year Material information briefings Investor mail Investor service line
Product liability and safety Customer service management Compliance
Supply Chain Management
Customer audit Supplier Conference Project meeting and consultation RBA Online Community activities Physical store activities Specific issue questionnaire
Immediate Irregular Annually Annually
Business operation overview
Business performance Product liability and safety
Supplier audit Supplier Conference Specific issue questionnaire Project meeting
Engagement Results
MSI revenue in 2018 increased 11.38% compared to the last year. 2018 cash dividend of NT$5 per common share The company engages investors regularly or as needed to convey its business performance and prospects. The company regularly to review the development of core industries and set warning indicators for conducting an operational strategy review.
Operation-related audit certification Supplier Conference (1 time) Irregular conference with communication RBA online information disclosure for customer Community instant activities Physical store experience The questionnaire and issue reply.
query
Onsite audit and communication Supplier Conference (1 time) Issue reply and information collection Project meeting with communication
Immediate Immediate Immediate Immediate Irregular
Business performance Employee Benefits
Employee Development Occupational safety
EAP hotline and mail ESH committee LOB/BU internal meeting Internal mail Employee satisfactory Survey
Feel free to give the opinion and make strategic adjustments and response To review the safety of employees' work environment To study employee activity satisfaction survey and develop employee requirements
2019 CSR 11
2019 MSI CSR Report
Media
Press conference Press release
Irregular Irregular
Government
Government regulation requirements CSR report Market Observation Post System MSI investor information website
Immediate Annually Annually Immediate
Non-Profir Organization
Stakeholder questionnaire CSR report Market Observation Post System MSI investor information website
Annually Annually Annually Immediate
Business operation overview
Business performance Compliance
Corporate governance Compliance Labor rights
Corporate governance Environmental management Compliance Labor rights
Media interviews Press releases Spokesperson public relations hotline and mail
Regular press releases to publish monthly revenues Questionnaire and interview
Questionnaire and interview Project meeting Relations with Associations Project collaboration
Media interviewsinquiries and press releases
The company works with government agencies regularly and as needed in implementing and coordinating related programs. Press releases. The company plays an active role in trade associations to facilitate frequent interaction among members of the industry. The company communicates via emailtelephones and Market Observation Post System(MOPS).
By applying for government subsidies or earmarked grants, the company forms academia-industry partnerships in specific fields with research institutions. The company plays an active role in trade associations to facilitate frequent interaction among members of the industry. The company communicates via emailtelephones and social media.
1.4 Identification of sustainability development Issues
Sustainability development issues analysis
MSI fulfills corporate social responsibilities under the principles of enhanced information disclosure, sustainable governanceenvironmental sustainability and maintenance of public welfare. Being able to narrow down potential issues and devise strategies that MSI has both the capacity and resources to implement helps align MSI and stakeholders to common sustainability goals.
Identification of sustainability development Issues analysis procedure
·Identification of issues In addition to following sustainability guidelines (such as GRIISO 14000 series, RBA, etc.), investment benchmarks (such as CDPDJSI etc.) and world-recognized initiatives (such as SDGsTCFD, etc.), MSI also attempts to identify stakeholders' concerned issues through business/operational feedback, customers' requests and issues highlighted by the management. To ensure the materialitycompletenessobjectivity and inclusivity of our material topics, we also took into consideration the materiality issues matrix of the previous report, the material topics identified by peers and GRI indicators when forming our list of concerned issues. In the end, 21 sustainability issues were selected to define the scope of material topics.
·Analyze and sequence issues MSI sustainability development issues are based on the statistics of the collection by the CSR office. We base on the four impact factors of responsibilityinfluenceresponsiveness and materialitythen, we calculated the points of each issue of interest in terms of the degree of impact (responsiveness and influence) on MSI and the degree of stakeholders' concerns (responsiveness and importance) , and 21 materiality issues have been identified, and used to determine the priority of disclosures made in this CSR report.
·Validation of issues To ensure the materiality, completeness, objectivity and inclusivity of MSI's sustainability issues, the Sustainability Development Office was assigned to review preliminary outcomes of MSI's sustainability issues matrix, whereas the CSR Working Team and department managers were invited to discuss and finalize the matrix after taking into account factors such as the sustainability plan, GRI requirements, operational prospects and available
12
Stakeholders' Concern
controls. Based on the results of the quantitative assessment, we divided the 21 issues above into material topics, other concerned issues and non-material topics, which formed the structure of this report and provided the basis of our response to stakeholders.
The 21 issues were divided into 8 material issues and 13 other concerned issues. Every material topic and other concerned issue was associated with one or several GRI indicators (please refer to Appendix 1). Other sustainability issues not identified above will still be addressed and disclosed throughout this report to satisfy the needs of specific stakeholders.
1.5 The Scope and Boundary of Material Topics in the Report
Materiality lssues Analysis
·Review of issues
MSI takes CSR report preparation as an opportunity to review its sustainability progress and efforts, and uses it as a means to communicate and respond to stakeholders' concerned issues. In doing so, we hope to satisfy stakeholders' expectations and attention to our business. We will re-examine the sustainability issues matrix in every reporting period thereafter and plan and adjust our communication with stakeholders accordingly.
The material topics list of MSI sustainability development issues.
Stakeholders Investors/Shareholders
Customers
Suppliers
Impact on MSI
Corporate Governance and Environmental
Economic Performance
Product and Service
Supplier Management Employees/Social
Employees
Media
Government authorities Non-Profit Organizations
GRI Material Topics
201205
205305307414416
205414416
201401
201307
305307416
205305307416
Related Report Sections
2.2 Financial Performance 2.5 Business EthicsBusiness ethics risk assessment
Other non-material
issues (The matrix numbers of section
13
1.5)
2.5 Business EthicsBusiness ethics risk assessment 5.3 Greenhouse Gas Management 2.6 Legal Compliance 4.2 Product Responsibility 4.4 Supplier ManagementSupplier Selection and Responsible Sourcing
49121314
2.5 Business EthicsBusiness ethics risk assessment 4.2 Product Responsibility 4.4 Supplier ManagementSupplier Selection and Responsible Sourcing
2.2 Financial Performance 3.2 Employee Profile
2.2 Financial Performance 2.6 Legal Compliance
41416
1016172021
13
2.6 Legal Compliance 4.2 Product Responsibility 5.3 Greenhouse Gas Management
111317
2.5 Business EthicsBusiness ethics risk assessment 2.6 Legal Compliance 4.2 Product Responsibility 5.3 Greenhouse Gas Management
91215161718 19
SDGs Target
SDG4
SDG31113
SDG31112
SDG48
SDG8
SDG313
SDG31113
2019 CSR 13
2019 MSI CSR Report
MSI analysis of material issues note
Category
Sustainability development issues Issues No.
Material issues
GRI Standard
Disclosure
Corporate governance and economic performance
Product and Service
Corporate operating performance Business ethics Compliance Product safety
Service Management Product energy saving
GHG management
Environmental
Employees/ Social
Supplier Environmental Management 14
Energy reduction Pollution prevention Water management
Energy using Energy intensity GHG efficiency Employment relations Cultivation of Talent Occupational Health and Safety Human rights management KPI(Key Performance Indicators)
assessment
Employee rights
Supplier labor rights
Supplier management
1
Economic Performance(201)
201-1 Direct economic value generated and distributed
5
Anti-corruption(205)
205-1 Operations assessed for risks related to corruption
6
Environmental Compliance(307)
307-1 Non-compliance with environmental laws and regulations
3
Customer Health and Safety(416)
416-1
Assessment of the health and safety impacts of product and service categories
13
Customer Privacy(418)
418-1
Substantiated complaints concerning breaches of customer privacy and losses of customer data
9
Energy(302)
302-5 Reductions in energy requirements of products and services
305-1 Direct (Scope 1) GHG emissions
2
Emissions(305)
305-2 Energy indirect (Scope 2) GHG emissions
7
Energy(302)
302-4 Reduction of energy consumption
11
Effluents and Waste(306)
306-2 Waste by type and disposal method
12
Water and Effluents(303)
303-3 Water withdrawal
15
Energy(302)
302-1 Energy consumption within the organization
18
302-3 Energy intensity
19
Emissions(305)
305-4 GHG emissions intensity
8
Employment(401)
401-3 Parental leave
10
Training and Education(404)
404-1 Average hours of training per year per employee
16
Occupational Health and Safety(403) 403-5 Worker training on occupational health and safety
17
Non-discrimination(406)
406-1 Incidents of discrimination and corrective actions taken
20
Training and Education(404)
404-3
Percentage of employees receiving regular performance and career development reviews
21
Employment(401)
401-2
Benefits provided to full-time employees that are not provided to temporary or part-time employees
4
Supplier Social Assessment(414) 414-1 New suppliers that were screened using social criteria
14
Supplier Environmental Assessment 308-1 New suppliers that were screened using environmental criteria
2. Corporate Governance
2019 MSI CSR Report
2. Corporate Governance
Core Values and Visions
Core value forms a significant part of MSI's DNA and is the soul that defines us. It has decisive influence on our R&D efforts, vision and product positioning. With a different core value and DNA, we will without a doubt produce completely different products.
Corporate Governance Commitments
MSI manages its businesses in the integrity, transparency and accountability. The Company has founded its internal policies upon the basis of integrity, and developed robust corporate governance and risk management mechanism to ensure the sustainability of its businesses. Meanwhile, corporate governance measures are constantly being improved upon for stakeholders' best interest.
·During the reporting period, the corporate governance management approach as below list:
Purpose Policies
Management Responsibilities
Resources 16
To disclose economic performance that MSI has delivered to stakeholders.
Corporate Governance Best Practice PrinciplesEthical Corporate Management Best Practice PrinciplesCodes of Ethical Conduct
Through corporate governance unit has been assigned to devise operating strategies, implement goals, control costs and maximize economic benefit for employees and shareholders.
MSI Corporate Governance Organization
Please refer to 2018 Annual Report-MSI and Subidiaries Consolidated Statements of Comprehensive Income
Goals and Targets Assessment Mechanism
Assessment Result
Communication/ Grievance Mechanisms
Ranked as top 6%~20% of public companies list in the Corporate Governance Evaluation by TWSE.
The Corporate Governance Evaluation held by Taiwan Stock Exchange (TWSE)
MSI was ranked top 6%-20% public companies list of The 5th Corporate Governance Evaluation held by Taiwan Stock Exchange (TWSE). Please refer to 2.2 Financial Performance
Email: 080419861@msi.com
2.1 Company Overview
MSI was founded in 1986 as a motherboard and graphic card manufacturer. Over the years, the Company has diversified into consumer electronics and commercial solutions through proprietary brand and as an OEM offering distinguished R&D and production service. The IT industry underwent drastic changes in 2010, but we remained persistent to our professionalism and sustainability focus, and adapted to the changes by shifting focus towards e-sports. We began with the introduction of gaming laptops and emerged as the world's leading brand of gaming laptops in 2014 that continues to dominate to this date.
Company Name
Micro-Star INT'L CO., LTD.
Date of Establishment 1986/8/4
Stock Code
2377
Industrial Classification Computer Manufacturing
Headquarters
No.69, Lide St., Zhonghe Dist., New Taipei City 235, Taiwan (R.O.C.)
Market Area Capital (NTD)
Global 8,448,561,990
Chairman
Hsu,Hsiang
General Manager (CEO) Chiang,Sheng-Chang
Employee
Taiwan 2,370
China
The China area does not provide information on the number of employees due to the confidentiality of the customer contract.
Operations Worldwide
MSI CANADA MSI USA
(Comprehensive Product Lines)
MSI EUROPE MSI NETHERLANDS MSI UK MANCHESTER
MSI SPAIN MSI UK LONDON MSI FRANCE MSI GERMANY MSI ITALY
List of Major Shareholders
The based statistics is according to 2019.04.16 to stop the transfer date of the shareholders' register.
Top 10 shareholders
Number of shares hold
Hsu,Hsiang
51,983,151
Fubon Life Insurance Co., Ltd.
Cathay Life Insurance entrusted HSBC Global Asset Management Limited Account
Lin,Wen-Tung
32,599,000 27,631,000 25,672,499
Huang,Chin-Ching
20,937,377
Nan Shan Life Insurance Co., Ltd. Lu,Chi-Long
19,125,000 18,650,835
Yu,Hsien-Neng
17,892,824
Investec Global Strategy Fund-Asian Equity Fund
16,329,000
Hsu,Fen-Lan
13,408,517
Shareholding % 6.15% 3.86%
3.27%
3.04% 2.48% 2.26% 2.21% 2.12% 1.93% 1.59%
MSI CZECH & SLOVAK MSI SWEDEN
MSI POLAND
MSI INDIA MSI DUBAI MSI TURKEY MSI UKRAINE MSI RUSSIA
MSI CHINA BEIJING
MSI KOREA MSI JAPAN MSI CHINA SHANGHAI
MSI HEADQUARTERS
MSI CHINA SHENZHEN MSI PHILIPPINES MSI VIETNAM MSI THAILAND MSI MALAYSIA MSI INDONESIA
MSI AUSTRALIA
2019 CSR 17
2019 MSI CSR Report
Corporate Overview
Being the world's leading e-sport brand, MSI is relentless in its pursuit for innovation. By managing a professional team, we interact with real players and design gaming products that meet their needs, which is the main reason that makes MSI the most trusted brand in e-sports. We invest countless hours and substantial resources into supporting talented gamers who have the ambition to excel in e-sports, while at the same time incorporate their knowledge and skills into our products. We take pride in researching, designing and manufacturing our products entirely in-house, and consider it to be the best way to incorporate MSI's infinite creativity and design concepts into the products. By involving experts from different fields, we pour the ultimate gaming soul into our designs and make each product a perfect collection of intellectual minds.
·True Gaming
MSI Gaming Milestones
2007
La unched the first Gaming NB - GX700.
La unched WW first overclockable NB - GX600.
2010
Re-focused on the NB ga mi ng market.
2008
Pa rtnered with pro tea m Fnatic.
Hel d first WW Gaming tourna ment. (Renamed to MGA)
2012
Gra phics ca rds dedicated to gaming.
Transform into Gaming
Success on Gaming Market
2013
NB s hi pments exceeded 10 mi llion uni ts.
2016
30th a nniversary.
Profi t hi t decade high.
GS70, worl d's 1st s lim Gaming NB.
MB focus ed on gaming.
AG2712, worl d's first Ga mi ng AIO.
Dominate Gaming Market
2015
Revenue & profit reached
record hi gh.
2014
WW No.1, 19% ma rket share of GamingNB.
Beca me world Gaming NB leader.
2017
Received PCMa g Readers' Choice Awa rd for a second straight year, 1s t i n Gaming & Wi ndows.
No. 1 s hi pment a nd most popular Nvi di a 10 s eries ca rds.
Profi t hi t decade high again.
GT80, worl d's 1s t 18" NB with mecha nical keyboard.
Ni ghtblade, MSI 1st Gaming desktop.
2018
Pa rtnered with ESL, being the offi cial Gaming and PC pa rtner.
Ra nked No. 1 Gaming Laptop Bra nd by PCMAG.
La unched Gaming monitors a nd recei ved favorable comments.
·Professional e-sports Teams Love MSI Gaming
We sponsored more than 20 professional gaming teams worldwide. We've created numerous opportunities for amateur and professional gamers to prove their worth in online and offline events.These professional gamers also give suggestions of what are important to them. These are valuable insight for MSI to be innovative and to create better products for gamers.
18
·Partner with the Main Channels
MSI considers its success to be attributable to a robust sales network. Working with distribution partners from all over the world provides MSI with quick control over pre-sale, business expansion, technical support and after-sale service in every market it operates. This makes the world better understand MSI, and enables consumers to find the information and the most suitable products they need in the shortest time.
·2018 Worldwide Awards
MSI continues investing in innovative R&D. The outstanding performance of the products has convinced countless media around the world to give positive reviews. Through the recognition of these awards, we are able to effectively promote our brand awareness, enabling us to market our products globally through diversified and integrated approaches to publicity, event marketing, experiencing marketing, and exhibition marketing, and digital marketing.
2018 CES Innovation Awards-Best of Innovation
2018 Taiwan Excellence Awards
2.2 Financial Performance
2018 iF Design Award
2018 COMPUTEX d&i awards
2018 COMPUTEX Best Choice Award
The ranked number 1 Gaming
Laptop Brands 2018 by PC Magazine
MSI places great emphasis on building competitive advantage within its main area of expertise. Since it made the transition into e-sports, the Company has re-allocated resources to the growing niche and executed plans at greater intensity that resulted in actual improvements in terms of profit performance and financial position. Through well-defined business targets, investors/shareholders are given a better understanding of MSI's prospects and values, and our performance in recent years is evident of our ability to deliver strong return on equity as a sustainable business. Through continuous improvement in financial performance, MSI has been able to strengthen financial position and generate better financial results and values to the benefit of its stakeholders including investors.
Financial Performance
Competitive gaming product designPlayer communication and satisfy player needsSupport for e-sports culture and increase the market share of e-sports and Ongoing improvement of profit and investment yield are the four main strategies that MSI has adopted to build business values over the long term. The following information is in accordance with Financial Reporting International Financial Reporting Standards (IFRS) summary and verified by the accountant. The data sources for the financial statements each year, details of the information available through the following channels: Market Observation Post System http://mops.twse.com.tw (Company Code: 2377) MSI Investor Information: https://www.msi.com/about/investor/
Sales revenue (NT$ Millions) 118,527
102,191 106,420 85,295
Profit before tax (NT$ Millions) 7,151
5,822 5,978
4,267
Earnings per Share (NT$)
Return on Equity (%)
20.9 18.6 18.1 14.7
4.39 5.79 5.84 7.15
2015 2016 2017 2018
2015 2016 2017 2018
2015 2016 2017 2018
2019 CSR 19
2019 MSI CSR Report
2.3 Governance Structure
MSI values business integrity and sound corporate governance, and considers prudent and transparent Board of Director to be the foundation of sound corporate governance. Functional committees including the Audit Committee and the Remuneration Committee have been empowered by the Board of Directors to assist the Board in various duties. The committees report work progress to the Board of Directors on a regular basis. The Board of Directors is also involved in the routine supervision of corporate social responsibility affairs.
Corporate Governance Organization Structure
The following information on corporate governance, including organizational structure, relevant education and experience of corporate governance members, as well as concurrent positions in other companies, board of directors, training and education on corporate governance, and functional committee operations, have been published in the annual report this year; relevant corporate governance information is available in the following channels:
Information Disclosure
Market Observation Post System http://mops.twse.com.tw (Company Code : 2377) MSI Investor Information : https://www.msi.com/about/investor/ MSI CSR : https://www.msi.com/html/popup/csr/index.html
Audit Committee Remuneration Committee
*President Office including: Business Planning Office, Global Operaon Management Office, Informaon Technology Service, Legal Affairs Office, IIP Office, Corporate Sustainability Office
President Office*
Shareholder's Meeting
Board of Directors
Chairman Vice Chairman
President &
CEO
Internal Audit Office
Management Committee
Financial & Accounting Div. Administrative Div. Human Resources Div.
NB BU CPS BU ACS BU
GNP BU EPS BU IPS BU
CND BU
Business Units
Sales div.
MAT div.
Function Units
R&D div.
QA div.
MFG div.
The Board of Directors
The Board of Directors serves as the ultimate governance body and decision-making unit within MSI. Board members are elected from persons with adequate capacity during shareholder meetings; the eligibility of relevant personnel is subject to the Company Act and relevant laws. The Board of Directors currently comprises 11 directors, including 3 independent directors; all members of the Board are male. The Board comprises members with diverse background and experience; collectively, they are capable of operational decision-makingbusiness administrationcrisis management, and possess the proper industry knowledgeglobal visionleadership and finance/accounting/legal skills needed to enforce corporate governance. Joseph Hsu currently serves as Chairman whereas Jeans Huang serves as Vice Chairman of the Board.The Board and its members perform duties in the utmost discretion, discipline and accountability. The Company has a set ofRules of Procedure for Board of Directors Meetingin place that requires directors to disassociate from decisions that present a conflict between their interests and interests of the Company when dealing with corporate business, and that material decisions are subject to approval at a shareholder meeting.
The Board of Directors meets at least once a quarter in accordance with the Company'sRules and Procedure of Board of Directors Meeting. The Board of Directors held eight meetings during the reporting period.The Board of Directors held eight meetings during the reporting period, the director's average attendance rate is 90.63%, and the independent director's average attendance rate is 100%.
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Audit Committee
MSI's audit committee is consisted of 3 independent directors, whose responsibilities are to assist the Board of Directors in decisions involving finance, auditing, accounting and material asset transactions, while making sure that MSI's operations comply with legal requirements. The Audit Committee meets at least once a quarter in accordance
has authorized the General Manager (CEO) to coordinate internal departments for the establishment and review of stakeholder policies, and assembled a Sustainability Development Office that specializes in CSR-related matters and makes relevant disclosures to the Board and to external parties at least once a year.
2.4 Risk Management
with the Company'sAudit Committee Organizational Rules. The Audit Committee held four meetings during the reporting period; the members' average attendance rate is 100%.
With pragmatic approaches, MSI understands the significance of risk assessment. To achieve sustainable development and minimize the potential impacts and damages caused by uncertainties, we set up
Compensation Committee
theProcedures for Operation and Management Planning, aiming to minimize the potential risks, bolsters the capability for effective
MSI assembled its Remuneration Committee in 2011 as a means to enhance corporate governance and improve directors' and managers'
management of the key sustainability risks and create the best conditions for business and other opportunities.
compensation system. The Committee has been authorized by the Board of Directors to assist the Board with the review of the Company's
Risk Management Organizational Structure
overall compensation policies and plans, thereby ensuring that
MSI has developed systematic risk management practices based on
compensations are reasonable and adequate for retaining talents.
existing organization and internal control. In addition to cost benefits,
MSI's Remuneration Committee is consisted of 3 independent directors,
these risk management practices have also been integrated with
whose responsibilities are to reduce risks of conflicting interest within
existing management systems to support business strategies and
the Company by exercising the duty of care of a prudent manager in the utmost professionalism and independence.
The Compensation Committee meets at
BOARD OF DIRECTORS
responses, and reduce potential risks of crisis.
Internal Auditing
Office
Board ofDirectors Chairman
least twice a year in accordance with the Company'sCompensation Committee Organizational Rules. The Compensation Committee held four meetings during the reporting period, the members' average attendance rate is 100%.
President & CEO
CSR WORKING GROUP
* COMPILATION AND RESPONSE OF THE CSR * CSR PROJECT PLANNING AND EXECUTION * CONFLICT MINERALS SURVEY * RESPONSIBLE BUSINESS ALLIANCE (RBA)
RELATED MATTERS COMMUNICATION
FINANCIAL AND ACCOUNTING Div. QUALITY ASSURANCE Div. CORPORATE MARKETING Div. LEGAL AFFAIRS OFFICE ADMINISTRATION Div. INTERNAL AUDITING OFFICE CORPORATE SOCIAL RESPONSIBILITY OFFICE*
Function Units
Business Planning Office ITS Office Legal Affairs Office IIP Office CSR Office Financial & Accounting Div. Human Resources Div. Administrative Div.
President & CEO
Business Units
NB Business Unit ACS Business Unit CPS Business Unit CND Business Unit EPS Business Unit IPS Business Unit GNP Business Unit
Corporate Sustainability Office
As part of MSI's ongoing efforts toward sustainable business and corporate social responsibilities, the Board of Directors
RBA MANAGEMENT
* RBA CODE OF CONDUCT COMPLIANCE
* LABOR RIGHTS * EMPLOYEE CARE
PUBLIC CARE SERVICES
* PUBLIC DONATION * EDUCATION AND CHARITY
SUPPLIER MANAGEMENT
* HAZARDOUS SUBSTANCE MANAGEMENT
* COMPLIANCE RISK MANAGEMENT
THE BUSINESS HONESTLY
* ETHICS MANAGEMENT * INTEGRITY PREVENTION
CORPORATE GOVERNANCE
* OPERATION MANAGEMENT * INFORMATION DISCLOSURE
ENVIRONMENTAL MANAGEMENT
HEALTHY WORKPLACE
* GHG MANAGEMENT
* HEALTH PROMOTION
* ENERGY MANAGEMENT
* MEDICAL SERVICE
* CLIMATE CHANGE RISK ASSESSMENT * EMPLOYEE ASSISTANCE
GREEN PRODUCT
SAFETY AND HEALTH MANAGEMENT
* GREEN REGULATIONS COMPLIANCE * CUSTOMER SAFETY AND HEALTH * REDUCTION ENVIRONMENTAL
IMPACT
* RISK ASSESSMENT AND PREVENTION * SAFETY AND HEALTH EDUCATION
Risk Management
Global Business Risk Information Security & Privacy Financial Risk Compliance Risk Climate Change Risk Personal MGMT & Human Rights Risk IIP Management Sustainable DevelopmentESH and External Event Risk
Risk Management
Production and Sales MGMT Risk Marketing Management Risk Core Competency Management Quality and Service Management
2019 CSR 21
2019 MSI CSR Report
Risk Management Life Cycle
MSI adopts the PDCA (Plan-Do-Check-Act) cycle for risk management. This approach enables the Company to mitigate, transfer, avoid or even assume risks of various categories in a controlled manner, and make ongoing improvements to actions and responses.
·The Risk Management Continuous Improvement Procedure
During the reporting period, a series of analyses were performed to identify risk factors that are likely to affect business operations. We then applied controls and adjusted procedures at different levels of authority to mitigate such risks. Targets and parameters have been set up in management systems to serve as risk monitor, which enables us to reduce chances of risk event or even turn them into opportunities. Overall, MSI encountered no major risk event that may potentially affect business operations during the reporting period, meaning that current risk management practices are effective in monitoring risks.
·Material risk issues during the reporting period
Risk Identification
Goals and Targets
Management Measures
Progress
Financial Risk
Maintain effective management of market creditliquidity and cash flow risk.
Please refer to 2018 annual report Annex 12 - Risk Management Policy and Risk Issues assessment.
No significant management risk was discovered under strengthen financial management.
Business Ethics
and AntiCorruption
Establish grievance channels for ethics-related issues; sign integrity commitments; eliminate fraud in procurement.
Implemented Ethical Code of Conduct Working Rules and Corporate Social Responsibility Code Organized awareness promotion and training Implemented grievance channels
No complaint of ethics or integrity violation was received during the reporting period.
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Supplier Management
Climate Change Risk
Legal Compliance
Improve supply chain response; enhance occupational safety and health; enforce information security and customer privacy management.
Steps were taken to ensure that no material was sourced from the Smelter or Refiner (SOR) list published by CFSI across all product lines and the entire supply chain Amended "New Supplier Evaluation Policy" Communicated with suppliers (through supplier conference)
No significant management risk was discovered under supply chain management practices.
Establish emergency
reporting system for natural
disasters, so that situation and recovery can be updated in a timely manner in the event of disaster. Implement contingent measures such as backup production and inventory
Applied energy/resource usage survey and control Made adjustments and energy optimizations to common equipment Introduced advance green production technology
reserve to mitigate
operational impact in the
event of natural disaster.
No significant management risk was discovered under sound early warning system. Energy-intensive equipment have been adjusted according to plan, and were able to achieve 8.71 % energy saving compared to the previous reporting year.
Ensure compliance with laws and economic social and environmental management requirements.
Policies have been implemented to ensure compliance with laws and economic, social and environmental management requirements. Compliance with occupational safety and health laws is being reviewed regularly. Product liability and safety management practices have been implemented
There had been no non-monetary penalty imposed during the reporting period for violation of law.
Employee Management
Establish and enforce management guidelines based on international initiatives on labor and human rights (such as RBA, OECD Guidelines for Multinational Enterprises etc.), and ensure full compliance with local laws where production sites are located.
Labor capacity survey and performance evaluation are being performed regularly. Employees have been subjected to regular training and career planning. Favorable compensation and welfare packages have been provided for employees.
The Company has complied with labor and human rights laws, and exhibited no improper management or violation of labor regulation during the reporting period.
Please refer to the 2018 annual report or corresponding chapters of this report for more detailed explanation about the above risk management measures.
Business Continuity Plan
Since 2008, MSI introduced the Continuous Operations Plan(BCP) to our internal system and established a crisis management panel, along with an internal reporting mechanism. We implement unscheduled drills for continuous operations, simulating different situations based on current events and issues that pose significant risks to the company. Each drill is documented and reviewed after the event and crisis-handling procedures and internal/external communication channels are established based on the results. Through the system and mechanisms, we expect to minimize the impact to business
operations during emergencies and contain risks, such as company downtime, shipping delays and staff casualties, within a manageable scale. The result of each drill is documented and published on our internal website EIP so that we can utilize this data during subsequent emergencies.To ensure the sustainable management of the Company, MSI implements and establishes business continuity operational management to make sure that the Company can resume operations quickly when disasters or impacts occur, which include the following: Protect the Company's reputation and investors' rights and interests. Reduce unexpected information and communication disruptions to
ensure normal operations. Create a good workplace environment and reduce the chances of
environmental and operational hazards. Establish rapid response to industrial supply chain management and
increase market competitiveness.
2.5 Business Ethics
MSI adheres to the national laws and ethics of the location where each plant is located to engage in operational activities; we prohibit the direct or indirect provision, commitment, demand, or acceptance of any undue benefits and interests, or any acts involving breach of integrity, illegality or violation of obligations in the course of doing business to obtain or maintain benefits. MSI will continue to abide by the operational philosophies of honesty, transparency and responsibility, base policies on the principle of good faith and establish good corporate governance and risk control and management mechanism, so as to create an operational environment for sustainable development.
Ethical Commitment
MSI upholds integrity and people-oriented values. The Company has ethics and behavioral codes in place and is committed to complying with laws and moral principles, protecting corporate assets, interests and reputation, earning the trust of stakeholders, and improving sustainable practices.
·During the reporting period, the ethical commitment management approach as below list:
Purpose
To assess corruption risk within MSI, respond to stakeholders' concerned issues, and support implementation of anti-corruption policies and procedures
Policies
Codes of Ethical ConductCorporate Governance Best Practice PrinciplesEthical Corporate Management Best Practice Principles Corporate Social Responsibility Best Practice Principles
Management
Internal policies such as Ethical Code of ConductCorporate Governance Management ProceduresIntegrity Management Code and Corporate Social Responsibility Code have been implemented to ensure that MSI employees are able to adhere to the highest ethical standards in business dealings and that stakeholders are made more aware of our ethics requirements. Together, they outline the scope of ethics and responsibilities that employees are bound to obey, and convey our corporate culture of integrity.
Responsibilities Internal Auditing OfficeLegal Affairs Office
Resources
A total of 568 suppliers have signed the integrity commitment during the reporting period.
Promote integrity statement of MSI Group Goals and Targets Conduct audit of the internal control system
Ensure protection of customers' privacy
Assessment Mechanism
Corporate Governance Evaluation, integrity statement, and signing of integrity commitment for procurement contracts.
Assessment Result
Suppliers are educated on the issue of integrity once a year. A total of 636 suppliers (100%) have completed the education during the reporting period.
Internal audit was performed on all operating locations of MSI and subsidiaries, and no significant corruption risk was found. Please refer to the Declaration of Internal Control System attached as part of the 2018 annual report-Management's Reports on Internal Control for more details.
No stakeholder has raised complaint regarding violation of privacyand please refer to 2.6 Legal Compliance
Communication/ Grievance Mechanisms
Please refer to 2.5 Business Ethics-Reporting Mechanisms.
Code of Conduct
MSI complying withEthical Corporate Management Best Practice PrinciplesCodes of Ethical ConductMSI Rules of Work and RBA-Code of Conduct. The content includes employee relations, gift hospitality, client privacy, intellectual property rights, discrimination/ bribery behavior, information security etc., strictly abide by the principle of avoidance of interests and anti-corruption.
·Responsible Business Alliance (RBA) Audit Management
Corporate sustainability is a long-term process, one that MSI has devoted to with the introduction of EICC in 2008 followed by the announcement of
2019 CSR 23
2019 MSI CSR Report
Corporate Social Requirements in 2009, implementation of supplier Second-party EICC audit in 2010, and adoption of RBA Validated Audit Program (VAP) for MSIS since 2015.We continue to disseminate and communicate relevant information on labor, ethics, and environmental safety to employees, suppliers, and clients. Corporate governance is based on business integrity with people at the center. Any forms of misconduct, improper interests, and inhumane treatment are prohibited.
MSI's Responsible Business Alliance Development Milestone
Goals and Targets
Management Measures
Progress
Future Goals
The electronic industry
and its supply chain
shall ensure that the
work environment
is safe, the workers
are respected and dignified, and
RBA VAP Audit
business operations
are compliant with
environmental
protection rules and
moral code
2008: MSI adoption of the Electronic Industry Citizenship Coalition (EICC) Code of Conduct 2009: Establish Corporate Social Requirements 2010: Supplier EICC on-site audit 2015: MSIS 1st. EICC VAP Audit (V5.1) 2017: MSIS EICC VAP Audit (V5.1.1)
2019: MSIS RBA VAP Audit (V6.0.1)(Estimated complete date: 2019.10)
Employee Training
In addition to offering training courses for new recruits, we also promote awareness on ethics and integrity using our EIP website, contracts and business documents. Furthermore, e-newsletters are distributed to employees from time to time to explain ongoing issues and clarify doubts. The above measures apply to the entirety of MSI Group and are intended to draw employees' attention to proper ethics and the zerotolerance policy.
Supplier Management
Competition is beneficial to business, but as multinational trade evolves, competition for profit margin has given rise to new forms of merger, receivership and market manipulation/segregation that are being considered as inappropriate conducts. For this reason, new behavioral
24
codes and legal actions are being undertaken worldwide against monopolistic conducts and unethical behaviors, and in doing so maintain the integrity of the business world. MSI has responded to the initiative through actions, exerting influence over suppliers to uphold common ethics and integrity. We use a multitude of channels (e.g. supplier conference) to promote suppliers' awareness towards MSI's integrity policy, and has compiled a list of Corporate Social Requirements to align suppliers' practices with MSI's expectations. During the reporting period, MSI continued to promote awareness among suppliers using the online platform (GPM) and by having them sign letters of commitment that convey MSI's resolve in upholding business ethics.
Supplier promotion focus: Suppliers are expected to act in MSI's best interest, and avoid
potential conflict of interest. Unreasonable contracting, collective bargaining and conspiracy
among suppliers are prohibited. Suppliers must have whistleblower systems in place and protect
informants against retaliation. Suppliers are expected to take initiative in reporting unethical and
dishonest conducts.
Business ethics risk assessment
Targeting on the risk of corruption, MSI conducted an assessment based on operations of different natures. The assessment approaches are further described below:
1. The offices of internal audit and legal affairs oversee signing of the business integrity declaration and business integrity pledge during contract signing to ensure that all MSI employees and suppliers conduct businesses with ethical practices.
2. The management is required to perform control self-assessment (CSA) and supervise internal audits on MSI and subsidiaries according to the company's internal control system. The progress of which is disclosed in annual reports, please refer to 2018 annual report P.39.
3. A complaint mechanism for business integrity related practices is set up for checking and control of possible risks of corruption.
Based on the information in the business integrity declaration and business integrity pledge in the procurement contract, results of CSA, and reports from the business integrity compliance, MSI's risks of corruption is well under control. No significant risk was found during the reporting period.
Reporting Mechanisms
MSI provides a wide range of channels for misconduct report, and any informant who makes report or participates in investigation out of good faith will be protected from retaliation. By encouraging misconduct report and protecting informants, MSI seeks to eliminate illegal conducts within the organization. Judging by the results of the integrity statement, the integrity commitment clause contained in procurement contracts, the CSA and ethics complaint channels, MSI is deemed to have maintained appropriate control over integrity risks during the reporting period. No significant risk was discovered and no integrityrelated complaint was received from any channel.
MSIT: 02-2227-1606 Hotline MSIS: 0755-28101899 Ext:8802 or 0755-27637600
MSIK: 18361990252 or 0512-57718888 Ext:1001 or 61001
E-mail Reporting Mechanisms
Mail Box
MSIT: audit@msi.com MSIS: jubao@msi.com MSIK: lianzheng@msi.com
MSIT: No. 69, Lide St., Zhonghe Dist., New Taipei City 235, Taiwan (R.O.C.) / Micro-Star INT'L Co.-Internal Audit Office MSIS: Longma Information Technology Insudtrial Park, Tangtou Village, Shiyan Town, Baoan District, Shenzhen City, Guangdong Province, P.R.China / MSI Computer (Shenzhen) Co., Ltd. / Internal Audit Office MSIK: No.88, Qianjin East Road, Kunshan City, Suzhou, Jiangsu Province, P.R.China / MSI Electronics (Kunshan) Co., Ltd. / Internal Audit Office.
2.6 Legal Compliance
MSI operates and services customers worldwide. To ensure that we meet full compliance with local laws and regulations, we pay close attention to the latest updates of policies and legislation that are likely to affect the Company's business and financial operations. The latest information obtained regarding regulations is communicated with the relevant
department in the first instance to ensure timely update of the Company's operations. We have also set up procedures and guidelines based on the relevant requirements provided in various laws and regulations. Our relevant actions include but are not limited to fair trade, environmental protection, compilation of financial reports, internal control, insider trading, employee conduct, anti-harassment, anti-discrimination anti-corruption, personal information protection, document management, ethical practice, intellectual property rights, information security, and management of conflict minerals. The above-mentioned management policies are extremely important for the management of MSI business ethics and compliance requirements. In addition to meeting basic operational requirements, all employees shall be informed of relevant business laws and regulations to make correct ethical judgments and operational decisions.
MSI adheres to ethical business practices and corporate social responsibilities. Therefore, we pledge our best efforts to achieve sustainability.
Category Compliance Indicator
Corporate Social Responsibility Progress
Social
Anti-corruption
Anti-competitive behavior
Compliance
MSI did not commit any improper dealings that are against our commitment for ethical practices or jeopardize the company's interests.
MSI's business activities did not involve inappropriate business activities such as anti-competitive practice, antitrust, or monopolizing practices.
No substantial fines or non-economic sanctions were imposed on MSI for violation of regulations.
Supplier
MSI did not have any workplace hazards or sustained any
Assessment for economic losses as a result of contractor or supplier's
Impacts on Society breach of operating procedures.
Grievance Mechanisms for Impacts on Society
There were no stakeholder complaints about unfavorable social impacts.
Non-discrimination
Human Rights
Forced or Compulsory Labor
No incidents of discrimination, human rights violations, forced labor and sexual harassment were reported.
Human Rights
Grievance Mechanisms
Child Labor
No operational base or supplier was found to have been involved in serious child labor disputes.
2019 CSR 25
2019 MSI CSR Report
Environmental
Effluents and Waste
MSI did not transport any wastes derived from business activities across borders. It was also not reported for serious incidents of hazardous substance leakage nor had fines imposed for violation of environmental protection laws.
The test results of all MSI operation sites fully complied with local regulations. No incidents of serious leakage were reported and no impact to the local environment and wildlife habitats related to MSI's operations was found.
Compliance
No substantial fines or non-monetary punishments were imposed on MSI for violation of environmental-protection laws.
Total number and volume No instance of serious leakage of the chemicals used in of significant spills MSI's business activities was reported.
Environmental Grievance No complaint relating to environmental impact was
Mechanisms
lodged through the stakeholder complaint mechanism.
Product Responsibility
Customer Health and Safety
MSI laptop model No. GE60/70 was found to have been manufactured using defective battery cells supplied by SANYO ENERGY (SUZHOU) Co., Ltd. In 2013-2014, which presented risk of short circuit and spontaneous combustion. With regards to the particular batch of laptops affected by defective batteries, we have initiated a callback, issued public statements and offered battery replacement service free of charge in conformity with legal requirements. No complaint or claim was made against the affected laptops and no injury had occurred as a result during the reporting period, hence no fine was imposed. Except for the above case, MSI's products and services did not violate health or safety regulation of any country.
Product and Service MSI did not violate any laws concerning product and
Labeling
service labeling.
Product Responsibility
Marketing Communications
MSI did not violate any laws concerning advertisement, promotion, or sponsorship for selling and marketing of products. MSI did not produce any prohibited or controversial product. None of its products was banned from sale in specific markets.
Customer Privacy
MSI did not receive complaints regarding violation of client's privacy right and/or loss of clients' information.
Compliance
MSI was not fined in substantial scale as a result of violation of laws relating to products, services and/or product usage.
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2.7 Relations with Associations
Through industry associations and external organizations, MSI not only engages supply chain partners in ongoing exchange of opinions, but also coordinates with them to fulfill corporate social responsibilities to the expectation of external stakeholders. The following is a list of associations that MSI is a member of. In each of the following associations, MSI undertakes appropriate duties and contributes its expertise to facilitate growth of the entire industry.
Association
Taiwan Automation Intelligence and Robotics Association (TAIROA)
North Electronic Human Resource Association (NeHR)
Taipei Computer Association (TCA) Taiwan Stock Affairs Association (TWSAA) Taiwan Printed Circuit Association (TPCA) Corporate Green Competitiveness Alliance (CGCA) Shenzhen Integrity Alliance Association
Taiwan Merchant Association Shenzhen (TMAS) of Shihyan Association
Shenzhen Hi-Tech Industry Association Kunshan HumanN Resource Association (KSHRA)
Taiwan Compatriot Investment Enterprises Association of Kunshan (KSTBA)
Kunshan Economic and Technological Development Zone Association of Work Safety and Environmental
Protection (KETDAWSEP)
Manufacturer
Title
MSIT
Member
MSIS
MSIK
Member
3. Employee Value
2019 MSI CSR Report
3. Employee Value
Talents are closely related to MSI's future
development. We attach great importance to the
training and future development of our employees.
We will continue promoting the cultivation of
quality talents and key technology management.
TheRegulations for Education and Training
Managementhas been established for
employee s' further studies and training, based on The selected as Cheers
which funds are budgeted and courses are planed magazine's Top 100 Most
according to the requirements of the relevant
Attractive Employers in 2018.
units every year to conduct subject-based training and differentiated
talent management. The purpose is to enhance employees' professional
development and self-growth, so as to achieve business sustainable
management and development. For the details of MSI education and
training courses and expenditures, please refer to the Labor-management
Relations Chapter of the MSI annual report during the reporting period.
Item / Year
Remuneration and Bonuses (In Millions of New Taiwan Dollars)
The Employee Benefits Costs (In Millions of New Taiwan Dollars)
Education and Training Expenditure (NT$)
The Employee Welfare Committee (EWC) Funds (NT$)
2016 1,359.30 6,973.03 1,736,430
54,275,919
2017 1,363.05
2018 1,363.45
6,752.46
7,053.81
1,892,230 5,857,284
51,008,421 59,040,003
3.1 Employee Policy
MSI considers employees to be the most important partner towards becoming a sustainable business, for they are the key drivers behind the Company's growth. This is why it is part of MSI's mission to involve employees in its core value and sustainability vision.
28
·During the reporting period, the employee management policy approach as below list:
Purpose
To provide employees with assurance regarding recruitment employment termswork rights and work environment, and thereby maintain sound labor-management relations.
Policies
MSI Rules of WorkCorporate Social Responsibility Best Practice PrinciplesCorporate Governance Best Practice PrinciplesRegulations Governing Establishment of Internal Control Systems by Public Companies
Management
MSI has implemented all of its employee rights protection systems in compliance with legal requirements. Through regular performance evaluation, MSI keeps track of employees' current state and offers necessary assistance to support their interests. Furthermore, we utilize a number of communication channels including e-mails and labormanagement meetings to maintain a harmonious and mutually beneficial working relation.
Responsibilities Human Resources
Resources
Please refer to 3.1 Employee Policy-Employee Development Policy
Goals and Targets Please refer to 3.1 Employee Policy-Employee Development Policy
Assessment Mechanism
The Corporate Governance Evaluation held by Taiwan Stock Exchange (TWSE)Labor Contract
Assessment Result Please refer to 3.1 Employee Policy-Employee Development Policy
Communication/ Please refer to 3.4 Employee Relations-Effective Grievance Mechanisms Communication
Employee Care Strategy
Maintain a competent and stable workforce Provide incentive compensations and a comprehensive welfare system Offer comprehensive career planning Create a friendly and joyful work environment
Employee Development Policy
MSI follows principles of sound governance, respects basic human rights
and is dedicated to providing a fair, integrity, safe and healthy workplace. Considering that employees are the most important members to corporate management, we treat them with the ultimate respect, provide open communication channels and create an environment where they can develop competitiveness, innovation and growth. With an active growth policy in place, we hope to see every employee accomplish excellence and find their places within the MSI family.
2018 MSI Employee Policy Goals
Progress 2020 Goals
Retention rate of key talents (%)
Inspection rate of Annual Health Examination (%)*
95 90.00
95.5 89.08
97 90.00
Development of leadership skills for
key talents
Introduction of Managerial Assessment of Proficiency (MAP) and coaching assessment, and participation of coaching courses (No. of attendees)
To expand
the scope of
246
MAP and offer subsequent skill
development
courses
* Inspection rate of Annual Health Examination: refers to the percentage of employees having participated in health checkup during the year; this percentage may vary due to employees' resignationattendanceabsence and rotation.
·Human Resource Management
Maintaining healthy of human resource has been an important goal for the Company, one that we have planned and adjusted strategically based on changes in the operating environment. Based on thorough analysis, MSI predicts human resource demands and supplies at various stages of growth to ensure that the organization has manpower of timelylocationappropriateandapplicableto support its sustainability goals.
·Diversified Talent Development
MSI continues to inspire employees to pursue dreams selfactualized as part of its talent development program. The Company
implements a diversified career development system and allows employees to rotate, transfer, undergo training and involve in projects as needed to develop skills or realize their dream careers. Meanwhile, the Company offers attractive compensation and benefits to compete for top talents in the market.
Course Category
Content
Goals
General knowledge To give new recruits a basic understanding of the internal
and guidance for new systems and work environment, and thereby improve
recruits
work relationships to let the work became easier.
Brand Core
Intellectual property rights
To introduce employees to patent and non-patent document search, how patents are relevant to innovations within the industry, and how businesses may improve competitiveness with R&D capacity.
Core value and brand To convey the company's core valuevisionvisual
story
guidelines and corporate image.
Leadership Institute
This is a complete set of courses on the leadership and management skills needed to become a supervisor.
Business Marketing Institute
This series of courses include semi-annually skill development activities aimed at reinforcing the sales and management skills of overseas managers.
MSI University
R&D Institute
This series of courses focuses on helping our employees develop new visions and new thinking for innovative R&D, with the aim to reinforce abilities in innovative development and perspectives on new industrial trends.
Technical skills courses are designed to enable Technology Institute continuous development of manufacturing technology
and mapping out of future directions.
Workplace communication
To learn how effective communication can be used to resolve obstacles, improve interpersonal relationships, enhance teamwork and improve work performance.
Project Training
Crisis and opportunities
To learn new market obstacles of the electronics industry, and turn crisis into business operation opportunities.
Constructive stress
To help employees to know the work stress, pressure source and managing work stress, and accordingly to improve work performance and mood.
2019 CSR 29
2019 MSI CSR Report
·Friendly and Healthy Workplace
To implement the core value of MSI and the vision of sustainable development, and maintain high-quality growth, MSI is committed to complying with the local statutory labor standards of each factory and international standards, including but not limited to prohibiting forced labor, prohibiting the employment of child labor, privacy, improper dismissal/ recruitment, and discrimination; relevant regulations have been set to protect employees' rights and interests, promote employees' physical and mental health, and enable employees to demonstrate their skills, grow together with the Company, as well as be a happy MSI employee.
Human Rights Policy
Non-Discrimination
No Child Labor
Employee Communication
Healthy Work Environment Working Hours Reasonable Compensation No Forced Labor
Description
Employees shall not discriminate or harass others while at work. In addition, race, gender, age, marital status, political affiliation, or religious belief shall not be used as a basis for determining employee hiring, review, or promotion.
Child labor will not be tolerated. All hiring will meet applicable minimum age laws and regulations.
Employer and worker meetings and suggestion boxes are setup to clearly and effectively resolve any labor issues. Employees are free to decide whether to enter into collective bargaining agreements or exercise other rights granted by law. MSI will not prohibit or interfere with employee rights of freedom of association or to engage in collective bargaining.
Through mutual understanding and respect, MSI provides a healthy and safe work environment for its employees.
To foster work life balance, MSI provides benefits above and beyond legally mandated standards through paid leaves and reduced work hours to ensure employees have more personal time.
MSI provides compensation and benefits that meet or exceed applicable laws and regulations.
MSI ensures that employees are not forced or coerced to provide involuntary labor in all aspects of MSI's business operation.
Career Development
MSI provides diverse and varied channels, subsidies, and resources to encourage employee career development.
30
MSI advocates that different genders should be treated equally in the economy, society, and the workplace and opposes gender discrimination to ensure that employees are treated equally in the workplace, practicing gender equality on the ground. Therefore, we have established the Gender Equality Committee, relevant management measures, and sexual harassment prevention and control channels, including an exclusive mailbox and telephone line, to provide communication channels for employees when their legal rights and interests are violated.There were no violations of discrimination, human rights, forced labor and sexual harassment during the reporting period.
·Sexual Harassment Prevention
We have established the Gender Equality Committee, relevant management measures, and sexual harassment prevention and control channels, including an exclusive mailbox and telephone line, to provide communication channels for employees when their legal rights and interests are violated.
HotlineInternal Extension No.1333 MSIT e-MAIL113@msi.com.tw
The sexual harassment prevention web : Internal EIP website-Employee Relations
MSIS
HotlineInternal Extension No.8858 e-MAIL carrieliu@msi.com
MSIK Corporate Mobile APP
·Excellent Salary and Welfare system
Knowledge is the foundation to MSI's sustainable development. We value every employee as well as their growth within the organization, and offer differentiated compensations based on employees' expertise educationexperience and job duties.In addition, the salary structure never discriminated by job gradegendermarital statusreligion or political association.All salaries and bonuses offered are higher than the local minimum wage and compensation for employees has been set at reasonable and competitive levels depending on local market conditions.They provide employees with the incentive to perform their best and contribute to the Company's growth.
Rights Promotion
MSI has established multiple service and manufacturing locations throughout the world. While we plan out our global business layout, we also openly recruit appropriate talents under a fair and transparent basis. Through having local employees from different regions and minority groups joining us, MSI has become a diversified business better equipped to offer the most immediate services.To ensure protection of employees' rights, MSI has adopted the principle to comply with laws at the minimum, and set up the relevant management system.
·Benefit Practices
MSI offers fair salary structure, and regularly review and flexible designed rewards system for various job roles , and implemented to improve performance on a corporate operations team and individual level.
Salary and Insurance
Salary (including supervisory differential payjob allowanceMeals subsidy)
Employees are rewarded(including the annual bonusperformance bonus and profit sharing etc.) according to performance.
Labor & health insurancethe employee retirement reserve funds
Free Group Insurance( including medical insurancecancer insurance accidental death insurance and life insurance)
·Fair Performance Assessment
MSI conducts employee performance evaluation twice a year, and conducts core competence evaluation based on the organizational goals set by each unit. To achieve fair performance evaluations, each employee is evaluated by at least two supervisors, including an interview with the direct supervisor to assist MSI in promoting labor-management communication.
2018 Gender and age distribution by region
Staff positions \ Manufacture \ Gender
Executive Mid-level executives
Supervisor General staff
MSIT Male Female 100.00% 100.00%. 88.70% 97.79% 100.00% 100.00% 93.89% 94.25%
MSIS Male Female 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
MSIK Male Female 100.00% 0.00% 99.0% 100% 100% 97.30% 74.36% 82.07%
Note:
1. The total number of employees of year-end performance evaluation based in 2017. (Former employees and Taiwanese Staff are not included)
2. Executive: including Assistant Vice President or above.
3. Mid-level executives: Section Manager or above
4. General staff: General administrative clerk (including Technician, DL(Direct Labor) IDL(Indirect Labor), Contract employees, Interns)
5. There were no female senior executives at MSIS.
6. Performance evaluation did not reach 100% at any MSI plants due to absence of employees on unpaid leave, newly recruited employees leaving before the end of the third month, and employees on personal and sick leave over 30 days.
·Flexible Working Hours
MSI makes humane work hour arrangements and offers a leave system that is more favorable than what the laws require. These systems are intended to help employees achieve balance between workhealth and family life.
Flexible work hours for office operations (office hours begin 8:30~09:00 and end 17:30~18:00)
Leave Policies
Four days flexible paid leaves are offered.
Every Friday, with 7.5 hours of work, employees can get off work half an hour earlier. For the business day before a 3-day (or more) holiday, employees can get off work 1 hour earlier after 7 hours of work.
2019 CSR 31
2019 MSI CSR Report
·Labor Retirement MSI makes contributions to employees' pension funds according to local regulations, regardless of where it operates in the world.
Retirement System
Taiwan: The employee pension benefit plans are constituted precisely and apply to the length of service for all formal employees before the implementation of Labor Pension Act in July 1, in 2005. The plans are also applied to the seniority of those who choose to fall under the Labor Standards Act after the implementation of Labor Pension Act. In the name of Supervisory Committee of Business Entities Labor Retirement Reserve, retirement accounts are opened in Bank of Taiwan.
China: In accordance with the old-age insurance system in the P.R.C., the MSIS and MSIK allocate pension premium for local workers based on a certain proportions of their payroll every month. The pensions of all staff would be made overall arrangements by the government.
·Welfare Allowances
MSI has an Employee Welfare Committee in place and offers most comprehensive welfare system for employees' life, promote the healthy development of employee both physically and mentally, and maintain harmonic labor-management relations.
Welfare Allowances
The Employee health screening offers for free.
In addition to subsidizing club activities, MSI also offers individual cash subsidies for various occasions including festivalsbirthdaytrip childbirthwedding and funeral.
The external professional training is fully subsidized.
·Health Care
MSI provides most comprehensive employees care to ensure physical and mental health.
we have set up an employee clinic staffed with a physician from a medical center to provide health consultation and medical services.
Health Care
We have also implemented a series of tasks for prevention of occupational health hazards, first aid training, health education, health promotion, epidemic prevention, and other health management related subjects.
All the complexes are equipped with dormitories, mobile and motorcycle parking lots, employee cafeterias, multimedia TV, microwave oven, rice steamers, coffee bar etc.
Taipei HQ offer of free massage service.
·Workplace Safety
Implement workplace safety management and provide a safe working environment for employees.
Working Environment
MSI has an Environmental Safety and Health Committee and meetings are held at least once every quarter to implementation of workers' safety and health.
Air conditioners, cooling towers and drinking fountains are being serviced and cleaned regularly to maintain office air quality and employee health.
The office building implementation entrance guard control, and set up central monitoring system is controlled by security personnel monitoring 24 hours a day.
Established the Automated external defibrillators (AEDs) for more people to respond to a medical emergency where defibrillation is required. CPR and first-aid knowledge is promoted among employees irregularly.
MSI holds fire drills every six months, and performsFire Safety Equipment Checksonce a year to enhance employees' fire safety awareness.
Establishment of fire prevents manager and oversee fire safety education within the organization.
32
3.2 Employee Profile
Employee Structure
2018 Gender and age distribution by region
Age\Location\Gender
MSIT Male Female
MSIS Male Female
MSIK Male Female
Number of Employees 1,489
MSIS and MSIK do not provide information
881
on the number of employees due to the
confidentiality of the customer contract.
Age 30 and under
14.5% 19.0% 56.52% 67.00% 72.8% 66.0%
Age 30-50
79.2% 76.1% 43.09% 32.61% 26.2% 34.0%
Over 50
6.3%
5.0%
0.39% 0.39% 1.0%
0.0%
Total
100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Note: There were no over 50 years old employees at MSIS.
2018 Gender and education distribution by region
Education\Location\ Gender
MSIT Male Female
MSIS Male Female
MSIK Male Female
Number of Employees 1,489
MSIS and MSIK do not provide information
881
on the number of employees due to the
confidentiality of the customer contract.
Masters & above
24.58% 18.16% 0.31% 0.18% 0.43% 0.00%
Bachelor
72.40% 75.60% 29.04% 15.46% 16.13% 17.59%
Others
3.02% 6.24% 70.65% 84.36% 83.44% 82.41%
2018 Employee grade distribution
Grade\Location\ Gender
MSIT Male Female
MSIS Male Female
MSIK Male Female
Number of Employees 1,489
MSIS and MSIK do not provide information
881
on the number of employees due to the
confidentiality of the customer contract.
Executive
4.90% 1.36% 0.55% 0.73% 0.50% 0.00%
Mid-level executives 23.77% 15.44% 4.45% 2.33% 7.18% 4.70%
Supervisor
0.13% 0.23% 8.98% 7.53% 3.77% 3.78%
General staff
71.20% 82.97% 86.03% 89.41% 88.56% 91.51%
Note:
1. Executive: including Assistant Vice President or above.
2. Mid-level executives: Section Manager or above
3. General staff: General administrative clerk (including Technician, DL, IDL, Contract employees, Interns)
4. There were no female senior executives at MSIS.
Employment
MSI offering competitive salary, benefits and employment terms, and also has robust on-job training in place to support employees' career development.Moreover, we strive to maintain an open and fair working environment where new employees may quickly adapt to the environment and the duties assigned to them.The immediate supervisor and members of the Human Resource Division also make communication and visits to minimize chances of resignation due to unfamiliarity with the workplace irregularly.All resigned employees were followed up with calls from HR staff or questionnaire to investigate the cause of departure and increase the retention ratio of good talents. As for compensations and incentives, we conduct regular performance assessments and decide them based on employees' individual education, experience, knowledge seniority and performance.All operation sites offer starting salaries for new employees that are more favorable than the local basic salary. The starting salary does not differ for employees' differences such as gendermarital status religion or political association.
2019 CSR 33
2019 MSI CSR Report
2018 Gender salary differences by job nature
Item\Location\Gender
MSIT Male Female
MSIS Male Female
Minimum salary ratio 1.18
1.18
1.02
1.02
Note: Only for full-time (direct labor) employees.
MSIK
Male Female
1.16
1.16
2018 MSI General Staff Salary Information
Item\Location\Gender
MSIT
MSIS
MSIK
General staff count (A)
2,104
Sum of full-time salary in the reporting period (NT$ Thousands)(B)
Average earnings in the reporting period (NT$ Thousands)(C=B/A)
2,889,689 1,373
Not applicable.
Median earnings in the reporting period (NT$ Thousands)
Not applicable.
1. General staff count: Disclosure is made in accordance withTaiwan Stock Exchange Corporation Rules Governing the Preparation and Filing of Corporate Social Responsibility
Reports by TWSE Listed Companiesimplemented since 2019(Amended).Differences from last year's staff count and salary will be disclosed in 2020.
2. Median earnings will be applicable from the next reporting year after the implementation date. (Applicable in April 2020 when reporting 2019 salaries)
3. General staff: General administrative clerk (including Technician, DL, IDL, Contract employees, Interns)
2018 the average new hire rate by genderage and region.
Age\Location\Gender
MSIT Male Female
MSIS Male Female
MSIK Male Female
The number of employment
MSIS and MSIK do not provide information
138
116
on the number of employees due to the
confidentiality of the customer contract.
Age 30 and Under 57.97% 58.62% 12.58% 13.65% 72.8% 66.0%
Age 30-50
42.03% 41.38% 87.42% 86.35% 26.2% 34.0%
Over 50
0.00% 0.00% 0.00% 0.00% 1.02% 0.00%
Total
100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
34
2018 the average turnover rate by genderage and region.
Age\Location\Gender
MSIT Male Female
MSIS Male Female
MSIK Male Female
The number of dismission
MSIS and MSIK do not provide information
123
81
on the number of employees due to the
confidentiality of the customer contract.
Age 30 and Under 37.00% 47.00% 12.76% 13.38% 91.8% 86.4%
Age 30-50
63.00% 51.00% 87.24% 86.62% 8.07% 13.60%
Over 50
0.00% 2.00% 0.00% 0.00% 0.13% 0.00%
Total
100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Employee Turnover of the Age Group of 30 and Under at MSIS and MSIK:
1. The majority of employees in the 30 and under age group are front-line operators. The reasons for the turnover are mostly related to personal reasons, salaries and benefits, job responsibilities and conditions in the local workplace. The MSIS & MSIK management of the plants continues to monitor the local situations and implement improvement measures.
2. Recruitment of employees in this age group was mainly targeted at filling the vacancies left in front-line operations. This was necessary replenishment of manpower.
2018 Employee composition contract type
Type\Location\Gender
MSIT Male Female
MSIS Male Female
MSIK Male Female
The number of employee
Full Time-Official Employees
Full Time-Contract Employees
Part Time-Interns
1,489
99.1% 0.9% 0.00%
MSIS and MSIK do not provide information
881
on the number of employees due to the
confidentiality of the customer contract.
99.4% 100.00% 100.00% 93.8% 88.3%
0.6% 0.00%
0.00% 0.00%
0.00% 6.09% 11.70% 0.00% 0.14% 0.00%
Total
100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
2018 the parental leave status at MSIT (%)
Descriptions
No. of people qualified for parental leave Actual no. of applicants
No. of people expected to be reinstated in the current year (A) Actual no. of people reinstated in the current year (B)
No. of people reinstated from long-term child care leave in the previous year, and who have worked for one year since (C) Actual no. of people reinstated in the last year (D) The parental leave reinstatement rate(B/A)% The parental leave retention rate(C/D)%
Note: Employees of PRC nationality don't have legal parental leave.
MSIT
Male Female
53
44
5
13
0
7
0
6
0
6
1
10
0.00% 85.71%
0.00% 60.00%
2018 the maternity and paternity leave status at MSIS & MSIK (%)
Descriptions
No. of people qualified for maternity and paternity leave
Actual no. of applicants No. of people expected to be reinstated in the
current year (A) Actual no. of people reinstated in the current year (B)
MSIS Male Female
68
110
68
110
68
110
57
87
MSIK Male Female
882
801
40
89
40
89
40
80
No. of people reinstated from maternity and
paternity leave in the previous year, and who
87
64
55
41
have worked for one year since (C)
Actual no. of people reinstated in the last year (D) 90
80
65
81
The maternity and paternity leave reinstatement rate(B/A)%
83.82%
79.09% 100.00%
89.89%
The maternity and paternity leave retention rate(C/D)%
96.67% 80.00% 84.62% 50.62%
Note: Employees of PRC nationality enjoy longer maternity leave under Chinese labor regulations; therefore, the reinstatement time often extends across reporting
3.3 Employee Development
Employee development is our focus. Given employees are indispensable from the future development of MSI; therefore, we begin with the selection, education, and retention of employees. As for employee education, we start from plan and implement internal and external training for employees. We have also established the Training and Education Management Regulations as the reference of continuing education and internal training of employees. Employees at MSI can receive continuing education and seek selfdevelopment through comprehensive learning channels and resources, such as internal training, external training, and expatriation. We also organize conferences, speeches, and e-learning programs for employees to improve professional skills and competencies. They may take training courses during work time at the expense of the organization as well.
Occupational Career Vision
Knowledge learning is the key behind the company's ongoing progress and develops.Through systematic career development planning to make knowledge change and innovation, develop the potential of employeesenhance work performanceorganizational efficiency and advanced the MSI's sustainable develpoment.
Occupational Development Blueprint
MSI has designed its career roadmap for the purpose of training top talents needed to response the highly competitive electronics industry, and establish development of workplace potentialsprofessional capacity development tiered training managementleadership training for the career core value, and contributes to MSI's vision and strategies by improving organizational performance and optimize organizational structure to help employees realize their dream career.
2019 CSR 35
2019 MSI CSR Report
Business Management Leadership Market analysis Strategic Management
Company Culture Experience Inheritance Core Value
Increase Organization Efficiency Optimize Organization Structure Career Ideals Achievement Corporate Vision Achievement
Leadership Sales and Marketing R&D T echnology
In-Service Training Language Training General Education Professional Training
Occupational Development Planning
·Development of workplace potentials
Basic training for new employees: All newly recruited MSI employees are required to complete the online of general knowledge course training before commencing duty. The course provides employees with a fundamental understanding of MSI's corporate culture and management policies including human rights, intellectual property rights, information security and occupational safety and health, which will shortens the time for manpower import.
Specialized training: Training of special skills for the recruited duty, including online operationquality management and skills pertaining to specific roles.
In-service training: Employees can request external training and conducting external professional courses for employees improve skills.
Language learning: The Company has contracted with foreign language centers and purchased learning materials from them to give employees the option of choosing the suitable foreign language institution to learn from.
36
·Professional capacity development
MSI University was established in 2009 with four main colleges, namely: Leadership DevelopmentResearch & DevelopmentTechnology and Sales & Marketing.The MSI university courses content combined with the company's overall strategy to carrying out focused, specialized and differentiated training for different job roles by limited resources utilization.
·Tiered training management
Managers in the growth phase are subjected to training on corporate culture, corporate identity and value. Depending on their job roles, they also undergo different forms of knowledge transfer to become management successors.
·Leadership training
For key business management talents, through a series of internal and external courses to train employees on market analysisleadership strategic management and business decision-making, and create a strong management team and ensure corporate good governance within the organization.
2018 the training status overview (Average training hours per employee)
Grade\Location\ Gender
MSIT Male Female
MSIS Male Female
MSIK Male Female
Executive
10.30 12.40
64.83
62.25
8.46
0.00
Mid-level executives 11.83
16.46
31.42
38.28 10.48 12.61
Supervisor
4.05
12.82
10.28
11.93 11.57
8.69
General staff
15.07 13.10
9.24
9.59
18.79 15.37
Note: 1. Executive: including Assistant Vice President or above. 2. Mid-level executives: Section Manager or above 3. General staff: General administrative clerk (including Technician, DL, IDL, Contract
employees, Interns) 4. There were no female senior executives at MSIS.
2018 MSI invests in employee training and education content.
Item\Location
MSIT
MSIS
Number of newcomers
249.00
18,104.00
Total orientation training hours for newcomers 3,203.77 1,658.00
Education and Training Expenditure (NT$ Millions)
5.86
5.83
Average training expenditure per employee (NT$/person)
2,472.57
885.88
MSIK 3,493.00 1,712.00
2.24
953.72
2018 human rights courses and training
Human Rights Training Item
MSIT
MSIS
MSIK
The Non-discriminationethics(including
anti-corruption)employee rights (including human rights)forced labor and sexual
207.5
9,360
856
harassment training total hours (hours)
Newcomers training percentage (%)
100%
100%
100%
Note 1: Please refer to MSI's 2018 annual report for more details on corporate governance courses and training undertaken by board members and the senior management. The employee irregularly uses e-mails and the intra EIP system to promote the human rights.
Note 2: MSIS hired contract labor from manpower agencies during the reporting period to support the increase in production orders, which is reflected in total training hours. Contract employees were entitled to the same rights as permanent employees.
3.4 Employee Relations
At MSI, effective communication with employees is seen as a significant part of our operations. To achieve this, we made several channels open and transparent to facilitate effective exchange of opinions between our management and employees and among peers. We believe that only through open channels will our employees be able to fully express their opinions and the management hears the truest voices from the employees. Only through effective communication will we achieve a harmonious relationship between management and employees.
Effective Communication
·Employee Assistance Project (EAP)
The Employee Assistance Project (EAP) help employees can get help for the following issues: work stress, emotional problems, tax, legal affairs, medical care, and others. By combing internal and external services, EAP helps employees to solve related problems and release work stress and emotions to regain mental health, so that their family will not need to worry about their physical and mental condition.
The contact information of Employee Assistance Program (EAP)
MSIT
EAP email : eaphelp@msi.com EAP Hotline : 8585
MSIS
EAP Hotline : 8858
MSIK
EAP Hotline : 8085
· The intranet EIP
The MSI EIP internal website provides employees with timely information on the Employee Welfare Committee (EWC) and administration-related matters. In addition to the preferential and discount information, employees can learn about their own rights and benefits as well as entitlements through this platform, and this website also integrates multiple employee systems, including salary checking, performance evaluation, computer repair, and personal health management, allowing employees to experience the most immediate service and care.
2019 CSR 37
2019 MSI CSR Report
·Reporting Channels (Business Ethics/Legal/ESH complaints/Sexual Harassment Grievance)
MSI is dedicated to maintaining a fair, balanced, safe and healthy workplace. In addition to the timely inspections made by immediate supervisorHR and nurses, employees may also raise complaints on illegal conducts, discriminations or safety/health concerns using various channels.We ensure to communicate with employees under protected privacy and transparency for further improvement to workplace health. No related complaint was received during the reporting period.
ESH Reporting Mail Business Ethics & Legal Mail Sexual Harassment Grievance Mail
esh@msi.com 080419864@msi.com
113@msi.com.tw
·Health Management Service
We arrange health checkup once every two years for employees and once per year for expatriate employees and senior managers. Male and female employees are entitled to different checkups, and a health management system is being used to manage health check information, which employees may access for health check inquiry, health-related knowledge and news on their own. Each plant site has medical staff stationed to provide timely communication on health issues.
·Meeting Communications (Environmental Safety and Health Collective BargainingDepartment MeetingManagement Meeting)
Through different business groups, MSI engages employees in weekly monthly and quarterly meetings to discuss the current state of business and issue major announcements. Employees are entitled to reflect opinions through available channels, and the communication provides the management with a better understanding of the current state of governance for more harmonic employment relationship.
38
During the reporting period, the employee collective agreement
Item\Location
MSIT
MSIS
MSIK
Collective Bargaining
Quarterly Quarterly Annual
Labor Union
None*
Yes
Yes
Percentage of total employees covered by collective bargaining agreements (%)
100
100
100
* MSIT has no employee unions and representatives established; employee communication can be conducted through multiple channels, such as the Environmental Safety and Health Committee, departmental meetings, and employee assistance project (EAP).
3.5 Healthy Workplace
A healthy workplace is essential to improving employees' mental state and strengthening the Company's human capital.At MSI, we view healthy employees to be the foundation of sustained business achievements, and therefore invest actively into employee carewelfare system and workplace safety to help employees adapt and adjust.Developing employee health self-managementcultivation of health occupational competence and a supportive working environment is how MSI rewards its growth partners in its pursuit for a sustainable future.
LOHAS at MSI
Various hardware and software facilities and activities are arranged at different plant sites according to the preferences of employees. In addition to using these facilities on ordinary days, employees have organizational activities, club activities, athleticism and cross departmental gatherings periodically organized by individual plant sites. These activities of different types are wished to provide employees physical and mental relaxation and make them enjoy a rich, healthy and balanced life between work and leisure.
·Employee Assistance Project (EAP)
Employee Assistance Project (EAP) was introduced in 2010 to provide employees with a broad variety of services including emotion
management, stress management, legal and medical assistance free of charge. EAP offers the following benefits to MSI:
1. Resolves issues that may affect productivity and are of concern to the organization.
2. Helps employees identify and resolve issues that may affect individual work performance, such as: healthmental statefamily financealcohol/drug addictionlegal conflicemotionstress or other personal issues etc.
During the reporting period, a total of two persons in the Taiwan region used EAP to assist the employee in adaptation to work. The employee assisted by this program has been properly arranged.
·Employee Regular Health Checkups
MSI holds regular employee health checkups and offers more frequent and more comprehensive checks than what the laws require. Employees involved in hazardous operations are subjected to special checkups. Based on checkup results, the Company evaluates health risks of individual employees and offers various degrees of care through plant infirmaries. The above arrangements are intended to help employees develop self-awareness in health management.
·Medical Clinic Establishment
All three plant sites have medical clinic in place with physicians and nurses stationed to enhance on-site medical care and support MSI's ongoing efforts such as prevention of occupational illness, health checkup, tiered health management and health promotion. Furthermore, we provide nursery conditions that are more favorable than what the laws require, and have breastfeeding room in place for female employees to breastfeed in private and comfort. The breastfeeding room was awarded a Best Breastfeeding Facility Certificate by the Department of Health of New Taipei City Government for providing a good breastfeeding environment.
Medical Service Item
Medical Service Content
Healthcare Service
Non-prescription drugs and general injury treatment facilities have been provided.
Health Promotion Instruments
Health instruments such as sphygmomanometer, multi-purpose scales and body fat analyzers have been made available.
Health seminar
Seminars on balanced diet, ergonomic engineering, stress relief, weight loss and blood donation are held irregularly.
Consultation by Stationed Medical Dictor of
Occupational Illness
All plant premises have physicians stationed on-site to provide consultation on occupational and general illness.
Health Education Service
Epidemic disease prevention and control, health education, health education and medical consultation.
Emergency Aid
Emergency medical aid (including AED).
2019 CSR 39
2019 MSI CSR Report ·Establishment of Employee Center We believe exercise to be beneficial not only to employees' health and work performance, but also for shaping corporate culture and brand value. This is why we have implemented a variety of facilities from dance room, badminton court, basketball court to treadmill and introduced a wide range of exercise courses (such as yoga, aerobic boxing, street dance etc.) for employees to choose from.
·Art and Literature Lectures For the 2018 MSI Arts and Culture Festival, the Company organized a series of seminars (3 sessions) and invited prominent figures from various industries to share their views and experience. Through the stories of people from different backgrounds, we give employees an insight to the lives of others and encourage them to take control of their future.
40
·Employee Welfare
The Employee Welfare Committee (EWC) is established at MSIT according to the Employee Welfare Policy. The committee funds come basically from two sources: 0.05% of the organizational sales turnover and 0.5% of the salary of individual employees for every month. These funds are mostly used to organize major annual events, the year-end party, cultural talks, gifts/cash gifts for the three major festivals, club activity subsidy, travel grants, monetary gifts of birthday, employee emergency aid, maternity allowance, wedding cash gift, department gatherings, interdepartmental gatherings, and employee recreational facilities.
Welfare Item/Location Business Bonus Pension
Employees Insurance MSI University Employee Clubs
Leisure Facilities Free Massage Service
MSIT V V V V V V V
MSIS V V V V V V
MSIK V V V V V V
Health Promotion
The Ministry of Health and Welfare has been advocating the idea of people's rights to health and responsibilities in staying healthy as the modern concept to a healthy lifestyle. MSI is aware of the importance of employees' health to business growth, and has therefore invited specialists from the infirmary to assist employees with health monitoring and promotion. In the meantime, we have taken the initiative to create a healthy work environment, offering various facilities and measures for employees to take part and live a healthy life. MSI's health promotion efforts incorporate the following emphases:
Evaluation of health history, including current state of health, previous health problems, fitness, nutrition and mental health.
Review of health conviction, stress in everyday life, and other health risk factors such as smoking habit, pollution, contagion, alcohol consumption, betel nut chewing, exposure to occupational hazards and electromagnetic field etc.
Balanced diet and exercise habit.
Regular health checks for common illnessPap smear and prenatal check for women.
·Health Management
We manage different workers' health conditions and undertake appropriate actions by reassigning tasks, making improvements to the work environment, arranging medical care, providing first-aid equipment, and offering health education, guidance and promotion for further enhancement of competitive advantage.
List of health management practices undertaken by MSI:
Health Management for High-risk Employees
Employees are reminded to follow up on health statistics and seek medical advice on a regular basis. Assistance for medical transfer and prevention plans for illnesses associated with abnormal workload are arranged as deemed necessary. Employees who exhibit high health risks are subjected to medical assessment and consultation before going on business trips; furthermore, subsidies and advises are given as recommended by Centers for Disease Control to employees who need to undergo inoculation for overseas business trip.
Maternity Health Protection and Management
In an attempt to eliminate workplace hazards that may present risk to pregnant women or female employees in the first year after giving birth, MSI not only conducts regular workplace risk self-assessments but also engages certified physicians to perform on-site inspections, with improvements and adjustments made to the workplace or employees' duties accordingly.
Emergency Aid First-aid officers and kits have been made available on each floor, whereas Equipment the production plants both have AEDs in place for emergencies.
Mental & Spiritual Health
Care
Heath Education Promotion
MSI employees are entitled to free, confidential one-to-one mental counseling service with professional counselors. MSI also organizes stress relief seminars and publishes articles to help employees channel stress and resolve mental troubles.
MSI publishes monthly health articles onto the intranet to inform employees of the latest epidemic diseases and health issues. The Company also organizes health seminars (20 sessions during the reporting period) on various topics and arranges free vaccination in October each year when influenza is most prevalent. Employees are free to decide whether to participate in the above.
The health management activities organized during the reporting period, which totaled 20 events and 1,952 attendees.
Self-paid Hepatitis A Vaccine
Self-paid Hepatitis B Vaccine
Company Subsidy for Influenza Vaccines
Health Blood Donation Promotion Women's Cancer Screening
Pap Smear Test and vaccination for Women
Oral Cancer Screening
Tobacco Addiction Treatment
Lectures and
Seminars
Introduction to sport injury and kinesiology tape
Work stress and emotion management
Say goodbye to insomnia
Challenges of menopause
Is ketogenic diet for you?
·Employee Clinic Medical Service
MSI's clinic is staffed by a qualified physician who provides employees convenient on-location medical services. The clinic also conducts seminars on seasonal epidemics, health education and workplace health that extend beyond the manufacturing plants to reach the communities through brochures and pamphlets brought home by our employees.
The employee clinic medical services are shown in the table below. A total of 5,798 employees use medical services during the reporting period.
Service Item
Medical Service
Employee Physical Examination
MSIT
NHI ClinicHealth CounselingPreventing
Ergonomic Related Hazards Management
MSIS
Clinics and Psychological Consultation
Room
Common and special exams
MSIK Clinics
Health Promotion Activity
Speeches and Dynamic Information
Hospitalist
2
Medical
Professionals Registered Nurse
3
1
1
1
1
2019 CSR 41
2019 MSI CSR Report
·Blood Donation Blood donation is an act that benefits oneself and others. It promotes blood metabolism, which enhance one's health, and plays a part in emergency rescue to save someone's life. Starting from 2002, the clinic at MSI Taipei Head Office has been inviting the Blood Center to host a blood drive at MSI every year. Other MSI offices also organize unscheduled blood drive activities to bring all members of the MSI family the opportunities to give and help others.
Note: Only MSIT give blood donation during the reporting period.
3.6 Occupational Safety and Health
Since 2003, MSI has been committed to promoting occupational safety and health (hereinafter referred to as OSH) management. Through internal control management, MSI fully implements the OSH management system regulations and occupational safety management requirements of internal departments; compliance inspection is conducted regularly at the request of laws, clients, or stakeholders. MSI is also constantly working to improve the OSH management at each operating site. The Employee Code of Practice and OSH Code of Practice describe employees' relevant health, sanitation, and safety rights and interest; the Environmental Safety and Health Committee is set up, in which labor representation accounts for more than one half of the committee. Through the supervision and implementation of the management system, the ISO 14001 and OHSAS 18001 Certification obtained to achieve the goal of continuous improvement.
42
MSI EnvironmentSafety & Health (ESH) Organization Structure
Chairman
Occupational Safety Office
MSIT
MSIS
MSIK
ESH Committee
Environment
Safety
Health
The ESH regulations check lists during the reporting period:
Regulation Category
Applicability Amendment
Impact
Compliance
ESH Management
20
All work is adjusted according
4
to the requirements of the
Yes
regulations.
Firefighting Management
3
Mainly in response to major
public security accidents
in medical institutions or
1
nursing home in recent years,
Yes
the revised fire management
requirements will not affect
the current fire management.
Food Sanitation Management
2
To enhance the coordination
of food safety affairs for
food manufacturers and
1
other foods, the revised food
Yes
management requirements
will not affect the current
management.
Environmental Protection
54
Water Pollution Prevention
& Waste Cleaning &
Environmental Product
13
Specification & GHG Reduction
Yes
of the revised management
requirements that is not affect
the current management .
EnvironmentSafety & Health Committee
MSI has established anEnvironmental Safety and Health Committee whose responsibilities are to ensure environment quality, workplace safety, and compliance with labor safety and health laws. We encourage all employees to participate actively in environmental safety and healthrelated matters, and expect everyone to take responsibility in the environment management system. MSI promises that all operating activities are carried out in protection of employees, customers and the nearby environment. To properly evaluate our commitments, the Environmental Safety and Health Committee convenes meetings once per quarter whereas the company undergoes internal as well as external audits each year and adjusts its management approach and strategies based on audit findings. Let us achieve the goal of continuously improving the performance of environmental safety and health management.
During the reporting period, MSI's labor participation in the Environmental Safety and Health Committee and the main discussion topics are summarized below:
Item/Location
MSIT
MSIS
MSIK
Number of Labor Representatives (A)
31
43
27
The total number of health and safety management committee members (B)
37
83
43
The ratio of labor representatives (A/B) * 100%
83.78%
51.81%
62.79%
Health and Safety topics
1. Workplace Monitoring 2. Traffic Safety Promotion 3. Safety and Health Risk Management 4. Health Promotion
1. Occupational Safety 2. Fire Equipment Management 3. Chemical Management 4. Machinery Equipment Protection
1. Electrical Safety 2. Fire Equipment Management 3. Chemical Management 4. Food and Beverage Sanitation
Completed ISO 14001 and OHSAS 18001 certification.
It has been individually certificated by 3rd parties.
Workplace Safety
MSI complies with occupational safety and health lawslabor standardoperational safety standards and implementation rules of all plant locations, and has occupational safety and health anagement plans in place to enforce compliance. Internally, the Company assigns safety and health units and officers to oversee performance and perform regular checks. We also arrange regular health checks for existing employees and pre-job checkups for new recruits, and provide the necessary environmental safety and health-related training to ensure employees' compliance with work codes.
·Work Injuries and Traffic Accidents
Environmental safety and health statistics for the reporting period showed no significant increase in work-related injuries over the previous year; nevertheless, we shall continue to execute our 3-tier safety training as a means to raise hazard awareness among employees. In terms of traffic accident, Taipei Headquarter reported significantly higher number of cases mainly due to the ongoing subway construction nearby, which posed additional hazard for motorcyclists particularly during rush hour. We will continue to reduce chances of traffic accident by reminding employees of danger at particular sections as well as the importance of servicing tyres and brakes.
The number of work injuries and traffic accidents during the reporting period is shown in the table below.
Item / Manufacturer / Gender
MSIT Male Female
MSIS Male Female
MSIK Male Female
Work injuries
0
2
9
1
2
3
Traffic Accidents
7
4
1
0
0
1
2019 CSR 43
2019 MSI CSR Report
·Disability Injuries
We are dedicated to creating a work environment that is free of safety concern, and has made zero-hazard workplace as our ultimate goal. A multitude of training courses, drills, protective gears and preventive measures have been introduced in compliance with local government regulations and corporate policies to raise employees' safety awareness and build a corporate culture of safety.
The disabling injuries statistics during the reporting period is shown in the table below.
Item / Manufacturer / Gender
Disabling Frequency Rate(FR)
MSIT Male Female
0.00
1.18
MSIS Male Female
1.34
0.72
MSIK Male Female
7.21
16.24
Disabling Severity Rate(SR)
0
2
20.88
2.50
61
111
Frequency-Severity Indicator(FSI)
0.00
0.05
0.17
0.04
0.66
1.34
Injury rate (IR)
0.00
0.24
0.27
0.14
1.44
3.25
Occupational diseases rate (ODR)
0.00
0.00
0.00
0.00
0.00
0.00
Lost day rate (LDR)
0.00
0.35
0.00
0.00
12.26 22.20
Absentee rate (AR)
0.19
0.53
4.60
2.60
1.66
2.00
Work-related fatalities 0.00
0.00
0.00
0.00
0.00
0.00
Formula Notes: The record date for total number of employees was December 31, 2017. Disabling Frequency Rate(FR) = Total # of injuries * 1,000,000 / Total hours worked Disabling Severity Rate(SR) = Total # of lost days * 1,000,000 / Total hours worked Frequency-Severity Indicator(FSI) =(FR * SR/1000) Injury Rate(IR) = Total # of injuries * 200,000 / Total hours worked Occupational diseases rate (ODR) = Total # of Occupational diseases cases / Total hours worked * 200,000 Lost Day Rate (LDR) = Total # of lost days * 2000,000 / Total hours worked Absentee Rate(AR) = (Total # of absentee days over the period / Total # of workforce days worked for same period) * 100% Absentee Rate(AR) : Employees' absence from duty (not caused by occupational injuries or occupational diseases), including sick leaves full-pay sick leave land occupational sickness leave; not including permitted vacationspersonal leavesnational holidaymaternity leavesfraternity leave and mourning leave.
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·Construction Safety Management
In an attempt to enhance safety and health and prevent occupational hazard in construction projects, we have assigned suitable supervisors, depending on the nature and size of the project involved, to supervise, audit, inspect and perform random checks on project, and thereby minimize chances of accident and pollution.
Construction safety management:
1. Work hazards are notified in advance whereas work activities are subject to prior review.
2. Special work activities that involve open fire, elevation, confined space, hoisting or gondola are subject to safety confirmation prior to commencement and random on-site inspection after commencement.
The construction safety management during the reporting period is shown in the table below.
The number of internal audits Non-conformity Improvement Improvement Rate
31
34
34
100%
Education and Training of EnvironmentSafety & Health
·Employee
Employees' health is critical to MSI, which is why we have taken the extra step to implement, maintain and manage our safety and health measures. The MSIT convenesEnvironmental Safety and Health Committeemeetings whereas MSIS and MSIK organize employee seminarsto promote employees' awareness. MSI employees involved in special, high-risk operations are required to undergo special health checks.
The education and training of ESH during the reporting period is shown in the table below.
Item
Occupational safety and health education trainingHazardous substance education
Course Title
Total hours Objects
New Employee Consensus Training
1,096,194
New Employees
Staff Safety and Health Education and Training
Work Safety Education and Training
Safety and Health Education and Training for Supervisors
Environmental Education Environmental Education
54,072 256 1,447
Internal Staff
Managers
Internal Staff
·Contractor
Contractors that perform special work activities involving open fire, elevation, non-standard electricity, hoisting, gondola or lack of oxygen must apply for permit from the work safety unit of the respective plant before commencement. These contractors have also been made aware of MSI's Contractor Work Safety and Health Rulesto ensure that they have a thorough understanding of environmental hazards and applicable safety and health rules. Contractors need to have work plans and personnel eligibility reviewed and approved before commencing work, and a work safety unit will be assigned to inspect safety on-site before and during work activities, as well as making sure that the work
site is restored properly with all files retained for future reference upon completion. Contractors will be instructed to suspend work immediately for any violation against environmental protection or work safety laws, or upon discovery of imminent hazard to employees. In which case, work may resume only when both the project owner and the work safety unit confirm that satisfactory improvements have been made to the defect. No safety incident had occurred due to construction activity during the reporting period.
As for onsite contractors, they all need to proceed with relevant insurance as required by the government and the legal regulations, in addition to complying by various safety and health work rules from MSI. In addition, we will supervise that onsite contractor pay sufficient attention to the labor conditions of their workers so that they could also be in compliance with national labor standards. We have also arranged training courses so that onsite contractors could better understand our requirements for health, safety, and environmental protection. The ESH training of Contractor during the reporting period is shown in the table below.
Item
Course Title
SafetyHealth and Fire Fighting
Training
SafetyHealth and Fire Fighting Fire Management
Educations
Resident Contractor Education Training
Resident Contractor Internal Meeting
Working Safety
Working Safety
Promotion Promotion for Worker
Food Sanitation Food Sanitation and
and Safety
Safety
The Number of the Attendance
MSIT
MSIS
MSIK
321
236
39
36 Not applicable.
36
321
56
68
9
32
50
MSIT 321
54 18 321 9
Total Hours MSIS
472
MSIK 78
Not applicable.
Objects Resident Contractor
112
68
Special Operation Contractor
64
400
Resident Restaurants Supplier
2019 CSR 45
2019 MSI CSR Report
·Environmental education
MSI considers environmental education to be critical for conveying respect for the nature and raising environmental awareness. This is why we have introduced a series of environmental courses to provide people with the correct knowledge that they can rely upon to formulate solutions. Working with environmental protection organizations, we held 3 seminars in 2018 to promote awareness towards sustainability and inform employees on the changes that are happening on Earth, as well as ways to improve quality of life.
Implications of genetically modified foods
Genetic modification (GM) is one of the most highly disputed technologies today, and although Taiwan does not grow GM crops, GM foods have already made their ways into our lives. In this seminar, we introduced the audience to the current state of GM foods and discussed their implications on health, food safety and the ecosystem.
Plastics reduction seminar
The seminar began by directing the audience's attention to ocean waste. Using long-term survey data and coastal cleanup records, it demonstrated how plastic materials are so easily accessible that they end up in the incendiary or landfill shortly after being used. In the end, the problem comes back to haunt us, causing irreversible damage to marine life. The seminar ended with a reminder that everyone should make progressive changes to their lifestyles and start taking environment-friendly actions.
Preventing food waste with fridge management
The seminar aimed to explain the cause of food waste and how it affects the environment, starting from our fridge. It encouraged employees to think about wastage and what we can do to reduce energy and carbon before making the next purchase. Lastly, the seminar called out to its audience to cherish our existing environment and make transitions toward the green diet.
46
Ergonomics Management
Ergonomic engineering is the idea of understanding the human body, its sensory and mental capacities and limitations, and making design changes to tools, machinery, procedures, methods and environment so that employees/users may achieve maximum efficiency, productivity and satisfaction under safe, comfortable and humane conditions. In an attempt to minimize ergonomic hazards that may lead to repetitive musculoskeletal injuries, MSIT initiated an ergonomic hazard prevention survey in 2018 and assigned its environment safety and health unit to conduct a musculoskeletal survey as part of the annual health checkup. Based on the survey results, the Company conducted a series of hazard assessments and improvements and followed up on the outcome of the investigations/improvements. The goal was to provide the company with objective recommendations and prepare future plant sites for ergonomic hazard, and in doing so create a safe and healthy workplace.
During the reporting period, MSIT surveyed a total of 1,758 employees, and 359 of whom exhibited discomfort but tolerable symptoms. Out of the 359 employees, 243 had symptoms that were considered acceptable while the other 116 who experienced discomfort are being followed up by stationed physicians with work details adjusted accordingly. Depending on the outcome of this survey, the company may consider applying the same feasibility assessment on the other two plants.
The following are illustrations of improvements made to employees's sitting posture.
Problems before adjustment of sitting posture: Shoulder and neck pain, soreness at the hips, worsened eyesigh.
Ergonomic hazard analysis: 1. Head leading forward. 2. Upper body bending forward with no spine support. 3. Line of sight is too high and off-center from the screen.
2019 CSR 47
2019 MSI CSR Report Feedbacks of adjusted sitting posture: Significant improvements to
shoulder pain, neck pain and soreness at the hips. Eyesight to be monitored further. Recommended adjustments: 1. Adjust chair to the appropriate height. 2. Correct the sitting posture and use cushion for spine support. 3. Adjust screen angle so that the line of sight is at center with head slightly dipped.
48
4. Product Value
2019 MSI CSR Report
4. Product Value
Faced with the challenges of deteriorating natural environment, we have responded with product risk assessment as a means to focus on the environmental goals we have set. By adhering to environment-friendly initiatives around the world, such as United Nations Framework Convention on Climate Change (UNFCCC)Paris Agreement etc., we implement sustainability strategies and strive to become the industry's leading green enterprise. As countries become increasingly aware of the environmental impact of production activities and emphasize producers' responsibilities, companies must also take environmental protection into consideration while developing new technology. Therefore, MSI actively promotes environment-friendly product design and green supply chain management system, while at the same time taking the initiative to collaborate with business partners on green product development and in doing so mitigate or even improve environmental impacts throughout the product life cycle.
4.1 Product Sustainability
MSI offers an extensive range of products and services in the e-sport industry to the satisfaction of millions of players and fans. While we strive to improve product performance, we also try to reduce energy consumption and impact to the environment and the society at the same time. In addition to addressing hazardous substancesenergy/resource consumptionwaste reduction and ESH(EnvironmentHealth and Safety) issues etc. throughout our operations, we also invite suppliers to join us in the creation of a green supply chain free from human rights dispute and the offering of environment-friendlylow-toxicitylow-carboncompliant and sustainable products.
Adaptation to Environmental Impact
In recent years, there has been increasing attention from around the world towards environmental performance of the manufacturing industry, which manufacturers have responded by incorporating environment-friendly elements into product development. This ongoing call for lower resource consumption and lower environmental impact throughout the entire product life cycle has kept motivating MSI to systematically incorporate environmental concerns into product design and development. MSI has incorporated Reduction Hazardous Substances Reduction Energy and Resources SavingEase of Disassembly/Recycling and Waste Reduction policies into the project development workflow. By emphasizing on Reduce, Recycle and Reuse (3R), we aim to minimize environmental impact of our products and improve market competitiveness as a result.
·Environmental Impact Management and Measures List
Goals
Reduction Hazardous Substances Reduction
Aspect
Reduction in the use of Hazardous
Substances
Compliance with IECQ/QC 080000
Management Measures
All raw materials are subject to RoHS and REACH of prohibited and restricted substances management.
Conduct hazardous substance management on the MSI Green Product Management Platform (GPM).
The global waste/resource recycling regulations have been established, and theMSI Standard for Environmentally Friendly Products-9th Edition has been published and included in the
requirements for management.
Goal Achievements
All meet the requirements.
10,890 approved parts has been completed.
Identify and manage 352 hazardous substances; Obtain IECQ/QC 080000
certification.
Future Goals
Make continuous of restricted substances management.
Make continuous of hazardous substance management by GPM every year.
Make continuous import the identification results into the MSI
management specification by annually.
50
The product outer packaging box is only available in 5 sizes, avoiding over-packaging and increasing the carrying capacity by about 3%.
All meet the requirements.
Assess the possibility of optimizing the carrying capacity.
Energy and Resources
Saving
Ease of Disassembly/
Recycling
Reduce energy consumption and carbon emissions
Resource Recycling
Increase the average efficiency of external power supply conversion from 88% to 89%.
Except for specific products and customer-specified materials, the external power supply compliance
with efficiency level V & VI.
Evaluate the possibility of optimizing the average active efficiency of the conversion.
At least 80plus bronze medal products are adopted in internal power supply products, which is 2% more efficient than 80plus white power
supply series.
All meet the requirements.
Make continuous use the 80plus specification's product.
Reducing the utilization rate of composite materials and use a single or compatible material plastics to increase the plastic recycling rate.
Plastic recycling rate of 90%
Improve plastic recyclability to 92%.
The materials of plastic and paper packaging materials are labeled for recycling.
100% complete labeling.
Make continuous labeling.
Reduction the proportion of parts in products, which are mainly treated by incineration or landfill.
The proportion of such materials has dropped from 5% of the total weight of a product to less than 2.5%.
Make maintaining incineration or landfill materials accounts for 2.5% of the total weight of the product.
Waste Reduction Regulatory Impact
The global waste/resource recycling regulations have been established, and included in the requirements for management.
Recycling rate of related electrical and electronic equipment of MSI during the reporting period which is superior to 80% set out in the
EU WEEE Directive.
TheMSI Standard for Environmentally Friendly Products-9th Edition has
been published.
Recycling rate >90%
Make continuous update. All meet the WEEE requirement.
Product Ecodesign
MSI approaches this issue from a product life cycle thinking perspective while taking into consideration the financial and technical feasibility. By conducting assessments over the entire product life cycle, we hope to minimize environmental impact of our products and services, and in doing so improve the friendliness of our products to the environment and the society.
2019 CSR 51
2019 MSI CSR Report
·Product Life Cycle Thinking
Scope
Goals
Extraction of raw Reduction Hazardous
materials
Substances
Manufacturing
Optimize Production Technology
Transportation
Best Logistics Management
Use
Improve Energy/Material Efficiency
Disposal
Waste Management Optimization
Management Strategy
Comply with international laws and related declaration requirements on hazardous substances
Monitor uses of EU's SVHC substances and assess reductions Choose environment-friendly materials (e.g. halogen-free materials)
Adopt green production technology Simplify production procedures Reduce production waste
Adopt reusable packaging materials (e.g. pallets) Improve transport efficiency
Plan deployment of logistics vehicles Adjust logistics distance
Reduce product energy consumption Reduce use of materials and adopt modular design
Use renewable materials Easier identification, maintenance and replacement of parts
Reduce packaging waste Reduce product waste
Increase recycling percentage Safe for incineration or landfill
Response Measures
MSI has completed an Eco-design guideline and continues to perform environmental impact assessments on its products Carbon footprint survey was completed on 16-inch workstation laptops in 2018. Life cycle carbon footprint of this particular product was calculated at 260 kgCO2e.
·Energy Saving Product
Through eco-design analysis and product carbon footprint inventory, we found that the main stage of carbon footprint in our products lies in energy consumption during user operation. Our response to this issue is to use technologies currently available to improve energy efficiency, starting from the product design stage. In hardware, product energy efficiency can be achieved through using high-efficiency materials and components. In software and firmware, efficient energy can be achieved through scenariobased power management. Effective management can not only reduce power consumption, but cut down product carbon footprint.
The table below exhibits the energy efficiency of MSI's Energy STARcertified products, including notebook computers, desktop computers and all-in-one computers. The average energy efficiency performances are all higher than the standard 27.85%12.41% and 23.25%, respectively.
52
(Other MSI of ENERGY STAR certified products, please refer to the Energy Star website: https://www.energystar.gov)
Product Categories
Model
ETEC* Calculation**
(kWh/yr (GJ/yr per pcs) per pcs)
ETEC_Max Calculation**
(kWh/yr (GJ/yr per pcs) per pcs)
Average ETEC saving (%)
Notebook Computer
MS-16S2 MS-17F2 MS-17E3
24.83 31.41
37
91.871 116.217
136.9
25.16 58.11 58.09
93.092 215.007 214.933
1.31% 45.95% 36.31%
Desktop Computer
Trident 3 B920 (H310)
MI3 B919 (H310)
B916 (7B54 Z370)
136.6 137.38 179.97
505.42 508.306 665.889
157.06 167.06 192.33
581.122 618.122 711.621
13.03% 17.77% 6.43%
All in One Computer
AAC1 AAC2
117.57 70.75 43.12
435.009 261.775 159.544
122.02 86.62 82.59
451.474 320.494 305.583
3.65% 18.32% 47.79%
* Typical Energy Consumption (ETEC): means the electricity consumed by a product over specified periods of time across defined power modes and states.
** ETEC Calculation and ETEC_Max Calculation equation please reference Energy Star Computer V7.1.
·Product Certification
To ensure that user's environmental, health and safety needs are met, MSI has established internal procedures and electronic review flow. The scope of which includes all of MSI's production lines, and label of contents all comply with environmental, safety, and health marking requirements from various countries to ensure that health and safety needs of consumers throughout the world are met.
72 Computers Compliance with
ENERGY STAR
352 Items of Hazardous Substance
Management
284 Products Comply with EU Safety Regulations
·Resource Recycling Management
MSI advocates green productionreduction at sourceresource recycling and reuse. Through efficient recycling and reuse of resources, we take progressive steps toward achieving zero product waste.
Green Product Design Index
Ecodesign Concerns
Management Measures
Resource Recycle
Design for material reduction Easy to disassemble, recycle, and
reuse
1. Recycled materials are introduced and used, and 10% recycled plastics have been introduced for mass production under specific client requirements in accordance with product safety regulations. 2. The ISO 14006 management system has been established for product eco-design assessment. 3. LED backlight panels have been used in all products containing displays; the panel of the LED backlight has been fully used to reduce excessive processing when the products are discarded. 4. The product color box is printed with eco-friendly soy ink to reduce the environmental impact of chemical paints.
4.2 Product Responsibility
MSI has always adopted the mission to offer high-quality products and services. Through establishment of internal procedures and review systems, MSI enforcesproduct responsibility managementwith emphases on reliable quality, enhanced information protection and accountability, which ultimately promotes sustainable consumption and market competitiveness.
100% Completed Recycling Packaging
Materials
100% Meet Global Waste Battery Recycling
Label
100% Meet WEEE Registration & Labeling
Requirement
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2019 MSI CSR Report
Evaluation Mechanism
Evaluation Categories
Range of Application
Management
Implementing Measures
Safety Health Environmental
MSI products and components
NPI(New Product Introduction , NPI) - Product design electronic
flow control system
Green Product Management (GPM)
Global Flow-MSI Packaging electronic flow control system
EMC & Safety & RFI Design & Verification procedures
Green new product development operation procedure
New Product Design procedures Packaging approval operation procedure New Product Introduction
Goal Achievements
Future Goals
100% meets the requirements of customers and regulations in global regions, achieving the goal of enhancing product competitiveness.
Offer high-quality products
characterized by low pollutionlow energy consumptionand high safety to prevent products and services from being
penalized.
Personal Information Protection
All customer service
Customer Privacy and Personal Information Protection Measures
1. Announcement of privacy policy over the website 2. Establishment of breaches of personal
information and processing control mechanism 3. Enforcement of information party's rights through
enhanced procedures 4. Processing personal information legally with the
Users' consent 5. Personal information handling and store
requirements 6. Personal privacy protection measures 7. Signing of personal information contracts with
3rd-party information handlers 8. Appointment of accountable units
MSI did not receive complaints regarding violation of client's privacy right and/or loss of clients' information.
Protect privacy and security of customers' information during processing and exchange, and thereby avoid possible lawsuit.
Note: MSI Product Liability Communication/Complain : Stakeholder mail: 080419864@msi.comTaiwan Product Service Hotline 0800-018-880
Product Safety Assessment
We address potential safety risks of our products in four steps: Hazard identificationRisk characterizationRisk management andRisk communication. ·Hazard identification: For better assessment of product safety, we first conduct to identify hazards in our products and analyzed them for the following aspects: Legal Compliance Requirements Consider the contact of hazardous substances with the human body Voluntary industry requirements
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·Risk characterization: After identifying and analyzing product hazards, we then investigate the severity and scope of risk exposure and describe the potential harm.
·Risk management: Based on the results of product hazard assessment, we take appropriate risk management measures for each product category.
·Risk communication: The following information has been made available by MSI to provide stakeholders a better understanding of the potential risks associated with every product category:
SDS(Safety Data Sheet) Instructions for safe operation and disposal of MSI products Product Safety Instructions Material Safety Statement
Product safety assessment content and performance during the reporting period is shown in the table below.
Impact Categories
Range of Application
Item
Evaluation Content
Goal Achievements
Safety
Computer Sytems
Equipment Terminals
Safety HDMI USB
ElectromagneticSafety Radio Frequency
Hardware Terminals Safety
Compliance with the regulations and laws : 100% compliant
Future Goals Ongoing
Components
Hazardous Substances Management
Health
Batteries Components
Waste Batteries CSCL REACH POPs
Environmental Hazardous Substances Management
Compliance with the regulations and laws , and The reduction hazardous substances and human contact considerations: 100% compliant
Ongoing Continuously update theMSI Standard for Environmentally Friendly
Products
Package Materials
Computer Sytems Package Materials
Batteries
PPW Packaging Labeling
WEEE PPW Waste Batteries Labeling
The waste disposal and recycle rate after product using.
Compliance with the regulations and laws , and The hazardous substances and human contact considerations: 100% compliant
Ongoing Continue to register recyclers declared products and package
weights that meet WEEE
requirements.
Environmental
ErP
Computer Sytems
Energy Star CEC DOE
Energy Efficiency Requirements
Compliance with the regulations and laws , and The voluntary industry requirements : 100%
compliant
Ongoing Continuous voluntary testing and reporting
product energy efficiency
MEPS(GEMS)
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4.3 Hazardous Substances Management
MSI evaluates negative environmental impacts associated with production and operations, commits to using environment-friendly materials, and complies with laws and customers' requirements. We demand all suppliers and internal departments to act strictly in accordance with MSI's MSI Standard for Environmentally Friendly Products and have specified in all procurement contracts that all products and services provided by suppliers must conform with environmental protection requirements. MSI currentlyprohibits/restricts 129 substancesandreports 223 substances (including REACH SVHC and items subject to reporting under industry guidelines and at customers' request). Through hazardous substance management, we coordinate with the supply chain to introduce environment-friendly products that not only comply with laws, but also mitigate or even undo impacts to the ecosystem.
Green Product Management (GPM)
In addition to imposing standards and contract controls, MSI has completed the implementation of a Green Product Management (GPM) system and began using the platform since 2010 to monitor regulatory requirementsindustry standards and customers' specifications. Suppliers' feedbacks are analyzed and interpreted immediately by MSI's internal departments, and once product conformity has been confirmed, information is transmitted back through this platform. The GPM has been integrated with existing management systems (such as IECQ/QC 080000) to complement manual control and reduce the time taken on routine data management tasks, thus making it a major communication channel with customers and suppliers.
GPM management performance during the reporting period:
None of MSI's products has violated environmental laws. Therefore, MSI has not been punished, fined or sanctioned. No recalls were implemented and no customer complaints were received.
The supplier signs theEnvironmental Compliance Statement of MSI, and there are 33 new supplier added in 2018 (As at the end of 2018,
there were completed 938 suppliers sign the statement). MSI completed component qualification management for 10,890 parts/components. Percentage of new suppliers that were screened using environmental criteria: 100%
(Green Product Management Platform)
Customer Requirements
Compare
Regulation Identification
Production Control
223
items 56
129
items
Supplier
Standard for Environmentally Friendly Products Material Data
Supplier Evaluation & Performance Management
Raw Materials/ Supplier Risk Assessment
Raw Materials & Components
Green Design Requiremens Green product management procedure Component Green Approve
Product Compliance Check
Qualified Products?
NG
Corrective and Preventive Measures
NO
Confirm the Effects
Yes
Close
Pass
OQC
Nonconforming Products
Banned substances of
Benzidine and restricted Expand the control
substances of specific
scope by products in
phthalates in packaging 2016.
Banned substances materials.
Banned substances of Arsenic PVC Hexachlorobutadiene and Carcinogenic substances.
Initial release of Standard for Environmentally
Restricted substances of MCCP Phenolic compounds TBBPA and Sb2O3
Package Labelling
of DEHP BBPDBP Added requirement of
DIBPPaper -based
Banned/ Restricted
packaging shall not use substances of Textiles
chlorine agent Any
LeathersToys
biocide and Methyl
Accessories & others.
bromide(MB) used in
packaging(wood) or 2016 V7.0
transport material.
2013 V4.0
2015 V6.0
2017 V8.0
Meet RoHS new material requirements in advance.
Friendly
Products
2010 V1.0
Requirements
2011 V2.0
2014 V5.0
Banned substances of REACH Annex 14 on authorization substances TCP/TCEP
2012 V3.0
Banned/ Restricted substances of Beryllium and its compounds HBCDD
Restricted substances of Phthalates and set the target for reduction. Packaging material recycle requirements.
Banned/ Restricted Antimicrobial &
substances of DINP Biocidal
DIDP DnOP
Substances
DnHP PFOA and
Halogenated dioxins
PAHs
and FuranBNST
TeCBs and MCCP in
Restricted
plastic materials
substances of
Antimicrobial &
Banned /
Biocidal Substances Restricted substances
Halogenated dioxins of Chromium VI
and Furans
PBB/PBDE in Battery
(Hazardous Substances
Restricted substances of Indium
Banned/ Restricted substances added items of Azodyes Halogenated aromatic substance DINP BPA and CSCL Class I substances.
Test requirements added DEHP BBP DBP and DIBP.
2018 V9.0
Banned/ Restricted substances of Phthalates(DEHP BBP DBPDIDP DINP and DnHP ) of Headphone cables .
phosphide. PFAS
Control Milestone)
Nanomaterials nHexane...etc.
Halogen-Free(HF) Flame Retardant Management
When choosing materials for product development, MSI not only ensures compliance with applicable hazardous substance laws, but also undertakes pro-active management over substances of potential environmental impact. Although the halogen-based flame retardants (BFR/CFR) are not prohibited or restricted by the current laws, they have certain negative impact on the environment, ecology and human body. Therefore, MSI has specifically created an HF (Halogen-free, HF) category from its classification of material properties for better control, while continuously evaluated and enhanced the feasibility of using HF materials.
We have carefully evaluated the use of low-hazard raw materials since the beginning of our design to provide our customers with innovative,
environmentally sustainable products. Based on the premise of the controllability and economic value of the product materials, we are planning and introducing HF flame retardants. We are dedicated to reducing harmful substances and providing customers with environmentally friendly product choices
HF flame retardant management measures during the reporting period as below list:
HF Flame Retardant Management Item
The E-sports product bill of materials (BOM) does not use halogen flameretardant materials.
VGA cards and motherboards introduce into flame retardant materials on printed circuit boards
All-in-one computers do not use halogen flameretardant in plastic chassis.
Goal Achievements
Goal
Future Goals
2018 base year: 71%
(ongoing)
>2% per year
Growing to 85% in 2025
2018 base year: 0% (2018 is the
starting year of the project)
2025: VGA card HF PCB usage >10% per year increased to 78%. Motherboard HF PCB usage increased to 65%.
100% completed
Ongoing Ongoing
4.4 Supplier Management
As a result of ongoing environmental, social and economic changes and the public's rising expectation for businesses to contribute actively in poverty elimination and creation of job opportunities, the scope of corporate social responsibilities in the 21st century has broadened from individual companies to cover the entire supply chain. In light of this development, MSI will expand its sustainable development strategy to suppliers' cooperation, and exert influence as an industry leader to guide suppliers through the transition of adopting a mutually beneficial business model.
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Supplier Management Policy
We holdCommon Goodat the core of good governance, and hope to contribute MSI's experience to assist suppliers with environmental protection, safety, worker rights and human rights issues in ways that realize our vision of a sustainable, win-win shared value. MSI has compiled a list ofCorporate Social Requirementsbased on the RBA code, the International Labor Standards andUniversal Declaration of Human Rightsthat specifically requires suppliers to comply with MSI's standards and laws applicable at MSI's plants with respect to labor practice, ethics, environment safety and management system.
Supplier Management Commitment
Protect intellectual property rights. Refrain from accepting or offering improper benefitsexclusive
dealingattempt to monopolizecombine or conspire with any other person or persons, or making exclusive trade arrangements whether solely or jointly with another party. Lead suppliers in the adoption of sound environmental protection, safety, human rights and worker rights practices. Encourage use of substances with lower environmental impact. Ensure that minerals certified by the Responsible Minerals Initiative (RMI) are used in the supply chain.
Supplier Management Strategy
Management Commitment
Reduce Environmental Impact Substances
Conflict Mineral Management
Responsible Procurement
Inventory & Evaluation
Establish Supplier Rating
Optimize Supplier Evaluation
Reach a Consensus Audit and Assisting
Strengthen Management
Establish a Sustainable Cooperation Model
Improve Information Transparency
Establish Traceability Mechanism
Disclosure Management Mechanisms and Performance
Deepening Cooperation & Info. Transparency
Three Goals and Seeking the Common Good
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Supplier Management Capabilities and Goals
In addition to performance standards such as quality, cost and delivery timeline, MSI has also established evaluation standards and agreements with existing as well as new suppliers based on international codes of conduct and standards. Suppliers are audited and reviewed on a regular and unscheduled basis, whereas under-performers are counseled and followed up for improvement.
Throughintegrity managementsupplier management environment management and human rights management we maintain good partnership with all our supply partners in an open honestmutually beneficial and transparent manner.
Management Ability
Shared Value
Management Goal
Business Ethics Management
Business Ethics and Fair Trade
Compliance Intellectual Property Rights
Establish grievance channels for ethicsrelated issues; sign integrity commitments; eliminate fraud in procurement; and avoid compromising the interests of two parties.
Supplier Management
Environmental Management
Human Rights Management
Supply Cchain Sustainability Management
Information Security Protection Customer Privacy Management
Improve supply chain response; enhance occupational safety and health; enforce information security and customer privacy management.
Energy and Resources Management
Waste Management Climate Change Adaptation
Eliminate hazardous substances, reduce waste, and assess impacts of climate change to avoid business disruption.
Labor Regulations Anti-harassmentAnti-
discrimination Conflict Mineral Management
Demand suppliers' compliance with codes of conduct and create an electronics supply chain that conforms with RBA and ILO requirements.
Supplier Risk Management
MSI closely monitors expectations of stakeholdersinternational organizations and customers, and evaluates suppliers' business environment business qualityservice standardcollaborative capacity and supply capacity based on their individual strategies contract fulfillmentmarket presenceperformance and requirements. Based on the above findings, we are able to identify risk
issues that are relevant to MSI.
·Supplier Risk Assessment
MSI's suppliers are evaluated on their manufacturing abilities, delivery punctuality, services and management and CSR performance through on-site audit, interview or document review. To ensure that our supplies meet MSI's economic, environmental and social requirements, we require qualified suppliers to sign affidavits declaring they do not use banned or restricted substances in their products as well as full compliance with labor practice principles.
Risk Identification Item
Economic
Environmental
Social
Risk Assessment
Industry Environment
Delivery Status
Company Total Quality
Service Quality
Compatibility
Asscessment Purpose
To establish understanding of the current politicallegal socialeconomic technological and geographic environment.
To investigate suppliers' response capabilities in terms of product qualitycost control delivery timeline and quantity.
To investigate suppliers' managerial competence,
including human resourcesfinancial position production equipmentR&Dreputation environmental protection practiceemergency responseservice satisfaction and communication.
To confirm the overall cooperative capacities,
including suppliers' behaviorscommon valuesinformation disclosure practices and product specifications.
Asscessment Item
Safety of the environment, transportation, and technology standard.
Product qualification ratio, pricing,
procurement cost, timing flexibility, and
quantity flexibility.
Personnel competencetechnical
competence, and environmental impact throughout the product
life cycle.
Supplier's service attitudeservice details and standards service response time, and quality of after-
sale service.
Corporate cultureorganization management corporate strategysystem management and
product standardization.
Risk issues related with MSI
Labor rights, conflict minerals, energy and resource consumption and GHG emissions management
·Identification and Assessment of High Risk Supplier
We evaluate suppliers' risks using a number of factors including industry category, location and substitutability. Based on the outcome of the evaluation, we are able to develop a supplier risk grading system that identifies high-risk suppliers for regular and unscheduled audit/ review, and follow up with counseling and improvements to reduce supplier management risk.
Identification criteria for key suppliers:
High purchase (sale) percentage Product exclusivity Ability to implement sustainable practices High technical barrier Highly pollutive manufacturing High labor intensity
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Assessment Category
Sustainability Risks
High Risk Supplier
Economic
Environmental
Social
Compliance Business Ethics Exclusive Product QualityDelivery
& Cost
Compliance Management System
Climate Change Adaptation
Waste Management
Health and Safety Human Rights Management
Conflict Minerals Labor Practices and
Working Hours
Integrated Circuit
PanelsCablesPlastic Parts
Printed Circuit Board (PCB)
Supplier Risk Management Measures
Under the new economic environment, it is increasingly common for companies to adopt strategies such as global procurementbusiness outsourcing and centralized management. While these strategies are all based on cost savings, they inevitably increase the risk of supply chain management. As the supply chain becomes increasingly dependent upon cooperationsharingoutsourcingcommunication and globalization, MSI has responded with more flexible supply chain practices and tightened monitoring of suppliers' current state of business and materials supply in an attempt to minimize risk of supply shortage in the event of economicenvironmental and social impact.
MSI Supplier Risk Management Measures
Business Continuity Management
Integrate the Company's requirements, require suppliers to develop contingency procedures and plans to address natural or man-made hazards that caused by suppliers' products and services, and thereby ensure business continuity.
Develop a flexible and diversified supply chain to prevent supplies from being monopolized to the point that threatens overall business operations.
Flexible contract management with optional terms and stage-bystage execution to reduce business losses caused by changing market price.
Environmental Sustainability Management
Demand that suppliers establish an emergency reporting system for natural disasters, so that situation and recovery can be updated to MSI in a timely manner in the event of disaster.
Demand that suppliers implement contingent measures such as backup production and inventory reserve to mitigate operational impact in the event of natural disaster, violation or accident.
Comply with environmental laws, offer clean-produced products and services, and enforce the environment management system.
Code of Conduct Compliance
MSI is committed to maintaining business integrity and prohibits any action that violates professional ethics. In addition to a whistleblower system, the company also has measures in place protect informants' identity.
Require that suppliers establish and enforce management guidelines based on international initiatives on labor and human rights (such as RBA, OECD Guidelines for Multinational Enterprises etc.), and ensure full compliance with local laws where production sites are located.
Ensure the confidentiality of business information and demand that suppliers respect intellectual properties of both parties.
Out of protection for human rights and compliance, suppliers are required to perform due diligence investigation to ensure that raw materials and products do not involve illegal minerals and smelters.
Supplier Selection and Responsible Sourcing
As a successful and leading business in e-sports, we purchase materials in a responsible manner and in the utmost transparency and fairness. We also work with suppliers to improve the quality of their products, and gain insight into their productionemployee and environmental practices in order to ensure procurement of ethical environment-friendlyresponsible and high-quality supplies from them as part of our green purchase.
We ensure that our suppliers achieve the following objectives through ethical procurement, environmental protection, and responsible production of materials:
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Item
Implementing Measures
Goals
Goal Achievements
Future Goals
New suppliers that were screened and managed
using social criteria
New suppliers that were screened and managed
using environmental criteria
The labor standards and working environment New supplier screening Ongoing:
in accordance with rules and regulations.
ratio: 100%
New suppliers that were
High risk and key supplier screened and managed using
on site audit: 71
social criteria.
Responsible Mineral
Conduct due diligence investigation based on Initiative(RMI)-The reply
MSI evaluates supplier risk primarily based on product qualitydelivery timesubstance managementaudit
OECD guidelines and prepare regular reports in compliance with Responsible Minerals Initiative (RMI) for higher transparency.
ratio of Conflict Minerals Reporting Template (CMRT) statement: 90%
outcome (e.g. RBA) and their ability to
The high risk and key suppliers carry out key audits and improvements. The reply ratio of Conflict Minerals Reporting Template (CMRT) statement >90%
enforce risk management. We target high-risk and main suppliers for audit and improvement, and use questionnaires to survey suppliers' performance in terms of environmentalsocial and routine practices. The outcome enables us to identify potential risks in environmental, social and economic aspects. Through random on-site audit, counseling and collaborative training, we take steps toward reducing risks of supply disruption.
Establish a ESHsafetyhazardous substances New supplier screening
management system of requirement.
ratio: 100%
Key suppliers obtain
certification ratio as below:
Meet the MSI Standard for Environmentally Environmental Management: Ongoing:
Friendly Productsmanagement requirements. 90%
New suppliers that were
Quality Management: 100% screened and managed using
Occupational Health Safety: environmental criteria.
70%
The high risk and key suppliers
Number of suppliers
carry out key audits and
violate of local environmental improvements.
regulations.: 1 (China
Meet theMSI Standard
There is improving using of hazardous
supplier, and we has
for Environmentally Friendly
substances in products and striving to reduce requested improvement
Products management
environmental impact substances.
within the specified time.) requirements.
There are 33 new supplier
had meet the MSI
Standard for Environmentally
Friendly Productsmanage
requirements.
Note: MSI Supplier Communication/Complain: Stakeholder mail: 080419864@msi.com
Conflict Minerals Management
Ethicsenvironmental protection and social engagement are the means through which MSI demonstrates sound governance to its stakeholders. Through RMI's regular due diligence investigation, we demand suppliers to make responsible purchase of tantalumgoldtin and tungsten and avoid using conflict minerals in their products, as well as any action that may indirectly violate human rights or national/international laws.
In respect of international human rights and implement corporate social responsibility, MSI will take related measures to avoid using Conflict Minerals. Besides Conflict Minerals statements, we are also disclosure the information of conflict minerals due diligence measure and supply chain
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smelters list. MSI has completed the Conflict Minerals Management Measures in order to facilitate the investigation and control of conflict minerals.
MSI Conflict Minerals Statement website link: https://www.msi.com/html/popup/csr/sh_conflict.html
MSI conducts annual certified mineral surveys on suppliers based on the latest Conflict Minerals Reporting Template (CMRT) and follows up on the progress of the submit. This survey has been effective in managing supply chain and minimizing default risks. In 2019, surveys were issued to a total of 381 suppliers to gather responses on their performance in the previous year, and 345 (90%) of which have replied. This response rate has increased progressively year after year; those that did not submit their responses are being followed up and counseled depending on levels of risk exposure.
·MSI Conflict Mineral Control Measures
Item Supplier Signing
Commitment
Document Management
Conflict Minerals Due Diligence
Due Diligence Information Disclosure
Unqualified Supplier
Implementing Measures There are signing of Procurement Contract
Electronic Industry Code of Conduct Letter AgreementMSI Standard for Environmentally
Friendly Productsand Corporate Social Responsibility Requirements.
Conflict Minerals Management Measures
Responsible Mineral Initiative(RMI)-The Conflict Minerals Reporting Template(CMRT) Survey
Due Diligence Analysis
CMRT company level report
The investigation results were revealed on the MSI website.
Unqualified product management procedure
Goals
Goal Achievements
Future Goals
Supplier 100% completed
100% completed
New supplier was requested to sign management commitments.
Management approach has been established.
The measures have implemented.
Continue to focus and survey whether the management item
is updated.
Issued every January and completed at the end of
March each year.
There are analyses of smelter information in the CMRT questionnaire from
supplier feedback.
Completed during the reporting period. Reply rate: 90%
The metal mines used in our products from smelters that
have received a "conflictfree" designation by the RMI.
Ongoing Reply rate: >90%
The report is available in every April.
The report is available in every April.
Information has been provided to customers in
need at April.
The report has been disclosed on the official website in April.
Management procedure has been established.
No unqualified suppliers found.
Ongoing Available every April
Ongoing Continue to ensure product
compliance
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·Cobalt Metal Survey
Battery has emerged as the key component in the world's ongoing movement towards energy/carbon reduction and in new consumer and auto electronics. Since cobalt is an essential metal to making Li-ion batteries, the mining of which has become so aggressive that some even incorporate disputable means. About half of the world's cobalt supply is sourced from Republic of the Congo, where exploitation of workers and child labor has caught the attention of human rights organizations worldwide. In light of this development, MSI began promoting awareness on risks associated with cobalt throughout its supply chain in 2018, and will be conducting investigation and evaluation in 2019 to ensure that suppliers have performed their due diligence checks and enforced labor and human rights in conformity with international standards. As a demonstration of our responsible procurement initiative, we will be disclosing the outcome of our investigation in next year's CSR report.
4.5 Customer Services amd Satisfaction
MSI attention on building relationship with customers through brand, and considers product and service experience after purchase to be the ultimate testament for a brand's success. We recognize customers' encouragement/complaintcompliment and criticism as constructive feedbacks, and measure customers' satisfaction byoverall product value, service, environment and performance" to provide the basis for better service experience.
Customer Service
We engage customers closely in all of our services. By heeding their demands and making immediate responses, we strive to build long-lasting customer relations for strengthened loyalty, closer interactionreduced service cost and improved profitability.
· Service innovation
MSI's service innovation is inspired by customers' needs, and we constantly strive to explore new and better ways to satisfy customers' diverse needs. We recognize customers' dissatisfaction as opportunities to make improvements; for this reason, we have adopted the following mindsets to ensure that we exceed customers' expectations.
Completed customer requirements: We satisfy customers in terms of both result and workflow, and constantly try to find new areas to serve.
Improved customer service: Through systematic steps, we explore and deliver customers' needs and make ongoing service improvements to adapt to newly emerged products and services.
Enhanced service experience: We assist customers in getting as many benefits as possible from a single service, and find possible ways to improve existing services without having to request for new solution.
Maximize brand value: We pay attention to customers' problems and try to find opportunities to serve.
·Product After-Sale Services
MSI has over 6,500 service centers in over 120 countries globally to provide customers convenient and localized sales and after-sale support. Our service centers provide quality services for product replacement, testing, technical consultation, accessories and free notebook computer health check-ups. In addition to support offered at local service centers, our online support also offers technical information inquiry, in-store service tracking, online service request and customer satisfaction survey.
Service Channels 0800 Taiwan Customer Service Internet Customer Service System MSI Forum Authorized service locations On line MSI Member Center
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·Pick-up Delivery Service
We launched the home pick-up service for certain products in 2015. Now, our customers can send their products out for repair without leaving the comfort of home. After a product is received for service, MSI's work begins: Our service staff updates the customer on progress, including notification when the product is sent back to the customer, does a post-service call, call to inquire the status of use and troubleshoot on the spot, as well as conduct a survey to inquire suggestions for MSI Services. Information derived from all customer service calls serves as valuable references for improvement of the quality of our customer services.
·Customer Service Performance through 0800 Hotline
MSI uses 0800 hotline service as a means to gather customers' response and thereby identify opportunities for ongoing improvement. We have internal performance indicators available to measure customers' complaints and opinions raised through different channels; together, they provide the basis for continuous service quality improvement.
·Product Free Check-up Campaigns
As a gratitude to consumers' support, MSI offers twice free diagnosis services each year including NB/AIO/PC hardware servicing, software/ firmware maintenance, and hard drive and peripherals testing. They are part of our efforts to ensure the quality of products delivered to customers.
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Customer Satisfaction Survey
Depending on the sales location and product category, we provide online and in-store after-sale technical service and support to customers, and invite customers to participate in a voluntary satisfaction survey (the details of which are frequently adjusted depending on the current market condition) after each service. If a customer expresses dissatisfaction, the Company would immediately initiate follow-up and visit, while at the same time forward customers' opinions to relevant departments for review and improvement. Outcome of every case will also be analyzed and presented to sales units to provide reference for new product planning.
Customer Privacy and Personal Information Protection
Protecting customers' personal information and privacy has always been part of MSI's fundamental service principles. The Company complies with the Personal Information Protection Act and related laws with regards to privacy protection and the collection and confidentiality of personal information. We make limited and protected use of personal information, notify customers of their rights, and process information with their consent and in full compliance with laws. These practices provide customers with assurance to the products and services we offer. Please refer to MSI's privacy policy at https://www.msi.com/page/ privacy-policy for more details on how we gather, make use and process your personal information.
MSI is dedicated to protecting personal information and privacy of all its customers. The company has completed internal identification of
personal information risks and implemented protection measures, and encountered no complaint or lawsuit concerning privacy violation during the reporting period. In the future, we will continue to protect customers' privacy at the highest standard.
·Customer Privacy
For the protection of customers' confidential information, MSI would confirm the following with customers before providing product maintenance and service: Backup of computer data (including but not limited to account/
password, photo and music files etc.) Reminder on risk of file loss. MSI's privacy policy, service terms and conditions, and compliance
notes. Customers may decide whether to use MSI's products and services.
·Personal Information Management Mechanism
Categories
Organization Management
Strategy Management
A personal information protection team has been assembled to execute tasks relating to personal information protection. An Data Protection Officer (DPO) has been appointed to oversee information and communication security within the organization.
Policy Management
Establish and implement personal information protection policies and rules, and publish on the corporate website; review and revise on a yearly basis based on compliance and audit findings. Comply with the Personal Information Protection Act and provide consumers with the function to inquireretrieve and delete personal information, and the option to unsubscribe marketing messages.
Procedure Management
Implement policies on internal/external privacyCookie and data storage/security. Internal data processing procedures. Data transfer protocol and record. Data leakage incident evaluation and reporting procedures. Procedures for exercising of information owners' rights.
Employee Management
Customers' profile is being treated asconfidentialdocument; all documents containing personal information is being held at designated locations, and access of which is strictly controlled. 100% of employees are required to undergo personal information protection training. Outsources are being required to sign confidentiality agreements.
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5. Environmental Value
2019 MSI CSR Report
5. Environmental Value
Economic activities by humans have caused irreversible impacts to the environment and accelerated climate change, increasing the frequency of natural disasters. Meanwhile, environmental issues concerning GHG emissionwastewater and waste treatment are putting electronics manufacturers at increasing risk of fines and work suspension. In pursuit of business growth and breakthroughs, MSI has taken a balanced approach towards growth and environmental protection by constantly monitoring and improving the ways we manage energywastewater resource and GHG emission. Overall, we have outlined a sustainability roadmap aim at achieving low carbon, reduced waste and low pollution that will ensure MSI's coexistence with the natural environment.
5.1 Environment Management Policy
The water, electricity, raw materials and other energy resources, waste disposal, and product hazardous substances used in the operation of the Company are all in compliance with local laws and regulations where each plant is located. To achieve the goals of environmental protection and sustainable development, we will continue to implement and improve preventive works and fulfill our corporate social responsibilities. We promise that:
1. Business activities will be conducted with priorities given to meeting full compliance with environmental protection and other relevant laws and regulations.
2. We will make all efforts to build a green supply chain and ensure that practices for protection of the environment are effectively implemented.
3. We will improve the efficiency of using resources and Implement an effective system for energy-saving and carbon emission reduction.
4. We will continue monitoring our practices of waste disposal and use of hazardous substances to ensure pollution control is continuously maintained and updated.
5. We will use and develop environmentally-friendly technologies.
6. We are committed to achieving good corporate governance and expanding economic development that includes environmental sustainability.
Environment Management Goals
MSI has set environmental and conservation targets for various forms of energy/resource, and management goals for the use, emission and reduction of energy and resources all under the environment management system. Together, they provide reference to our environmental policy and management efforts, and serve as the basis for ongoing audits and improvements.
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Item
Management Goals
Reduction of GHG 4% average annual reduction of GHG emission compared to 2007
emissions
(baseline year)
Reduction of Energy Consumption
1% average annual reduction of energy consumption compared to 2007 (baseline year)
Reduction of Water Resources
1% reduction of total water consumption compared to last year.
Reduction of Waste
1% reduction of total waste compared to last year.
Hazardous Substance
Control
Increase the use of the Bill Of Material (BOM) of halogen-free materials in e-sport product by at least 2% per year by 2025 compared to 2018 (baseline year).
Results Reduction of 5.77%
Reduction of 4.74%
Reduction of 6.65% Reduction of 5.48% Achievement of 71%
Future Goals
By 2025, GHG emission reduced by 50%.
By 2025, total energy consumption reduced by 50%. From 2019 we coordinate with the GHG management goals and set the average energy saving rate of 4% per reporting year as the target.
Continued to reduce 1% compared to the previous reporting year.
The halogen-free materials ratio of BOM reaches the growth rate of 85% by 2025.
Reduction of Hazardous Substance
Increase the use of the halogen-free materials in VGA card and motherboard product by at least 10% per year as the target by 2025 compared to 2018 (baseline year).
2018 (baseline year): 0% (2018 is the starting year of
the project)
By 2025, the halogen-free materials ratio of PCB reaches to VGA 78% / Motherboard 65%.
Compliance
During the reporting period, MSI ensured that the operations activities were in compliance with environmental regulatory requirements at the factory site.
No substantial fines or nonmonetary punishments were imposed on MSI for
violation of environmentalprotection laws.
Continue to meet regulatory requirements.
Environmental Management Measures and Performance
Out of respect for environmental protection, pollution control, green production and sound corporate management, MSI not only complies with environment and energy-related laws, but also incorporates international certified environment management systems and occupational safety and health management systems into its operation. These measures help promote environment, safety and health awareness within the organization, support pollution prevention efforts, and contribute to our goals as a hazard-free, zero-accident and sustainable business.
·Environmental Safety and Health (ESH) Management
We devote attention to environment-friendly measures and make improvements on an ongoing basis. Management and action plans are devised annually to improve environmental safety and health performance, and mitigate impact of business operations on the environment and the community. MSI's commitment to environment safety and health is supported by robust management systems, policies and rules. Together, they help identify potential risks within the environment and minimize environmental impact of our business operations and products. By regularly checking existing practices for compliance, we ensure that our environment management system continues be effective.
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MSI ESH related management system list:
Management System ISO 14001 ISO 14064-1
OHSAS 18001 IECQ/QC 080000
ISO 50001
MSIT V V V V
Not applicable
MSIS V V V V V
MSIK V V V V
Not applicable
·ESH Continuous Improvements
Pollution prevention and ongoing improvementare the two main principles that MSI has adopted to enforce environment management. By undergoing annual internal and external audits, we ensure that our environment practices are PlanDoCheck and Action to ensure the goal of achieving sustainable improvement.
·ESH Management Performance
Item/Location
MSIT
MSIS
MSIK
ESH related management system
Obtain the 3rd party audit certification*.
Water Footprint Inventory
76,417 m3 reduction of total water consumption compared to last year.
Reduction of GHG emissions
6,843.17 Tonnes CO2e reduction of total GHG emission compared to last year.
Energy Saving Management
17,379.9 GJ reduction of total power consumption compared to last year.
Air Quality and Noise Measurement
We voluntary air quality and noise management commitment. No incidents of serious air and noise pollution were reported to MSI's operations were found.
Waste Water Discharge
The test results of all MSI operation sites fully complied with local regulations. No incidents of serious leakage were reported and no impact to the local environment and wildlife habitats related to MSI's operations was found.
Waste Management
It was also not reported for serious incidents of hazardous substance leakage nor had fines imposed for violation of environmental protection laws.
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Compliance**
No substantial fines or non-monetary punishments were imposed on MSI for violation of environmental-protection laws.
* The certification including: ISO 14001ISO 14064-1OHSAS 18001IECQ/QC 080000ISO 50001(Only MSIS)
** ESH Communication/Complain : Stakeholder mail: 080419864@msi.comESH mail: esh@msi.com
Environmental Expenditure
MSI engages in an industry that is not involved in high-pollution and highenergy consumption. The relevant operations are mainly plant assembly and administrative operations, and an environmental management system (ISO 14001) and an occupational safety and health management system (OHSAS 18001) have been established, and valid verification from an impartial third party has been obtained. The relevant environmental expenditure and investment during the reporting period are as follows:
Item
The Total Expenditure on Environmental
Protection
Expenditure (NT$) 14,824,333
The Goals and Benefits
Benefits: Ensures that the company's environmental activities and disposal meet the requirements of relevant laws and regulations and reduce the possibility of environmental pollution. Uses: Waste disposal, Maintenance of wastewater treatment system and waste water testing, environmental management external services, 3rd party certification of management system.
The Total Amount of Investments
in Environmental Protection
119,120,494
Benefits: Ensures that environmental protection equipment is operating properly. Uses: Equipment maintenance, equipment supplies, environmental education and training.
5.2 Climate Change Management
Climate change and potential disasters have made risk analysis and extremity forecast two very critical issues for the electronics industry.
At MSI, we have performed impact analysis and risk assessment on areas we consider to be vulnerable given the prevailing climate and environmental changes. These assessments provide us with a general idea of our existing protections and risk exposure, which we may exploit to explore potential opportunities. Despite the fact that MSI is not an energy-intensive manufacturer, the Company has made proactive statements about its control over GHG emission, signed various commitments and taken action to reduce GHG in living as well as operational activities. Meanwhile, strategies have been developed in response to environmental and operational impacts.
·Management Strategy
Resilience to climate change: Implement risk identification, response and prevention measures in relation to climate change and avoid impact to operations.
Promote low-carbon production: Adopt optimized technologies to reduce greenhouse gas emission, and set reduction goals.
Incorporate green energy equipment: Acquire and utilize renewable energy equipment such as solar-powered heaters to reduce dependency on power grid.
Improve energy efficiency: Devise energy and carbon reduction measures and enforce action plans for improved energy efficiency.
·Control Measures
Identificationevaluation and analysis of impacts and risks associated with future climate.
Adaptation planning and review. Energy/resource coordination. New protection facilities or improved disaster prevention equipment. Regular examination of asset and commercial insurance coverage
to determine whether they are adequate for compensating losses caused by climate change.
·Mitigation of Climate Change
MSI supports UNFCCC and the Paris Agreement, which introduce the objective of keeping greenhouse gas concentration in the atmosphere at a level that would prevent dangerous anthropogenic (human induced) interference with the climate system. Such a level should be achieved within a time-frame sufficient to allow ecosystems to adapt naturally to climate change, to ensure that food production is not threatened, and to enable economic development to proceed in a sustainable manner.
Risk Identification and Response Measures
Item
Aspect
Response Measures Goal Achievements
Voluntary GHG emission inventory declarations
Survey GHG emission and Complete GHG
energy consumption
Inventory.
Voluntary total GHG cap control
Promote low-carbon manufacturing and energy/carbon reduction measures
Achieve the goal of reducing emissions.
Environmental Regulations &
Compliance
Low-Carbon Economy(Carbon TaxCarbon Trading etc.)
Search for relevant laws using the management system; raise employees' awareness to laws and internal policies and thereby reduce chances of violation.
Completed establishment of carbon trading procedures for plants in China
Product Energy Efficiency Standards
Evaluate viable technologies and materials to be used for product design and reducing energy consumption.
Energy efficiency of new-generation circuit
designs has been
improved even further. Complied with energy consumption requirements of ErP MEPSCEC and Energy Star.
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Extreme Climate
Economic Activity
Energy Management
Assess mitigation
measures for risks of
natural disaster that
are caused by climate
Implemented
change. Make appropriate Business Continuity
Natural Disasters probability of occurrence and severity level, affect production and operation.
improvements and enhancements to plant sites, and advise the government on making improvements to infrastructures in order to withstand climate risks.
Planning (BCP) and established emergency response procedures for natural disasters and fire Commercial insurance coverage
Incorporate commercial has been acquired
insurance and emergency
production procedures to
reduce losses in the event
of natural disaster.
Supply Chain Management
Evaluate suppliers' competence and help them adjust whenever deemed necessary.
No supplier was found to exhibit imminent risk.
The consumption pattern was being changed and Increase the demand for environmentally friendly products.
Implement product life cycle environmental impact analysis; assess product eco-design to ensure reduce environmental impact.
Completed establishment of product eco-design procedures, and 100% of system products have completed the assessment.
Identify Weaknesses in Energy Consumption
Adopted ISO 50001
Energy Management
System.
Monitor energy usage at MSIT and MSIK
various plants and identify adopt a voluntary
weaknesses that can be management
improved upon.
approach and replace
energy-saving
equipment according
to schedule.
5.3 Greenhouse Gas Management
The Earth's climate and environment are deteriorating due to exponential increase of greenhouse gases over the years. In addition to supporting carbon reduction initiatives of international organizations,
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MSI has implemented its own GHG management systems at various plant sites and assigned environment safety and health units to regularly review and enforce applicable measures.
GHG Management Commitment
MSI is well-aware of the reality that Earth's climate and environment are deteriorating due to exponential increase of greenhouse gases over the years. As a responsible citizen of planet Earth, we commit to:
Duly monitor GHG emission of the business.
Execute GHG reduction measures and develop low power consumption products.
Publicly announce the GHG strategy and become the industry's role model.
·During the reporting period, the GHG Management Commitment approach as below list:
Purpose Policies
To facilitate response to risks and opportunities associated with new control measures imposed by local and foreign governments against climate change-sensitive activities.
MSI ESH and CSR PolicyISO 14001 Environmental Management System
Management
Impacts of climate change and greenhouse effect are being felt at an increasing scale throughout the world. MSI will continue to monitor and analyze the changing climate as well as how the world reacts to it. Outcomes of our analysis will be reported to the senior management on a regular basis, whereas the board of directors will be notified of issues that require special attention. For more details on MSI's initiative at identifying risks and opportunities of climate change, please visit the corporate website: https://tw.msi.com/html/popup/csr_tw/evmtprtt_climate.html
Responsibilities Administrative Div.Corporate Sustainability Office
Resources
Organization: Maintenance SectionCorporate Sustainability Office Knowledge: Environmental care promotion via email.
Goals and Targets
Please refer to 5.3 Greenhouse Gas Management-GHG Management Goal
Assessment Mechanism
ISO 14064-1 CertificationGHG Inventory Report
Assessment Result 5.3 Greenhouse Gas Management-GHG Emission
Communication/
Grievance
ESH Mail: esh@msi.com
Mechanisms
GHG Management Goal
Climate change is an imminent issue that businesses must react to eventually. Global changes such as increasing temperature and extreme weather conditions serve as a reminder that we must pick up the pace of our reduction measures. This is why we have initiated a series of GHG surveys to ascertain the source of emission as well as the degree of impact, and are constantly exploring solutions and goals to mitigate impact of GHG on the environment. MSI is committed to managing carbon emission and greenhouse gas emission. We pledge to achieve the following before 2025: 50% reduction in greenhouse gas emissions (baseline year 2007). 30% improvement in system product efficiency (baseline year 2014).
GHG Emissions
We have been executing GHG surveys since 2008, and in order to establish common grounds and reduction goals over the long term, all plant sites are required to conduct GHG survey in accordance with ISO 14064-1 and obtain 3rd-party certification once every year. Having established baseline data on GHG emission, we set 2007 as the baseline year(total GHG emissions 113675.33 tCO2e) and aimed to achieve GHG reduction by 50% before 2025.
·GHG emission management performance during the reporting period
Item
Goals
Goal Achievements
Future Goals
Total GHG Emissions
By 2025, 50%
Total GHG Emissions 62,713.95 reduction of total
tCO2e
GHG emissions
1% reduction of total GHG emissions compared to
last year.
50,961.38 tCO2e reduction of total GHG emissions compared to 2007(baseline year). 9.84% reduction of total GHG emissions to last year.The reduction target for 2018 was
(60,803 metric tons of CO2e) compared to 2007(baseline year). From the next year, we set the 4% average annual reduction
achieved.
of GHG emission
compared to 2007
(baseline year).
GHG Emission Intensity
Regular Disclosure
Total GHG Emission Intensity
0.529 tCO2e/ million NTD.
1.116 tCO2e/million NTD of total
GHG emissions in 2007(baseline
year) , and decrease 52.57%
Continuous annual
decrease of volume compared to regular disclosure
baseline year.
0.125 tCO2e/million NTD
reduction of total GHG emissions
compared to last year.
·Emission Factor and Management
Except for power coefficient and fossil fuel calorific coefficient, all other coefficients cited during the reporting period were calculated using data published by IPCC in 2006.
Taiwan Electricity Emission Factor
China
Fossil Fuel Taiwan Emission Factor
China
By Bureau of Energy, Minnistry of Economic Affairs notice for Electricity Emission Factor
By Nation Development and Reform Commission notice for Baseline Emission Factors for Regional Power Grids in China.
By Bureau of Energy, Minnistry of Economic Affairs notice for Energy Using Product Unit and Heating Value List
By China Energy Statistical Yearbook 2012.
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Global Warming Potential (GWP)
GHGs are converted to CO2-equivalents based on Global Warming Potentials the IPCC 1995 Second Assessment Report. (Unit: Tonnes CO2e)
The context for Taiwan any significant
changes in emissions that triggered recalculations China of baseline year emissions.
None None
Setting
Taiwan
Organizational Boundaries China
MSI used the control approaches to consolidate GHG emissions.Under the control approach, MSI accounts for 100% of the GHG emissions from operations over which it has control.
·GHG Emission Inventory Results
2007
Year
(baseline 2014
2015
2016
2017
2018
year)
Scope 1 Direct emission (tCO2e)
6,383.20
3,012.00 2,366.53 2,227.64 1,865.96 2,349.55
Scope 2 Indirect emission 107,292.13 79,160.00 71,434.50 71,135.95 67,691.00 60,364.40 (tCO2e)
GHG Emissions Intensity for Per-Million Revenue
(tCO2e/million)
1.255
0.968
0.865
0.718
0.654
0.529
5.4 Energy Management
Considering that office and production activities make up the majority of energy consumption, and hence GHG emission, in MSI, we have introduced self-assessment practices based on the requirements of each plant, including ISO 50001 - Energy Management System for MSIS, to help identify energy-intensive equipment and areas where energy efficiency and power usage habits can be improved upon. Starting
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from the next reporting year, we will aim to reduce average energy consumption by 4% yearly compared to the base year (2007), and thereby conform with international GHG reduction goals.
Energy Management Commitment
Consistent energy supply is an essential element to sustainable business. MSI is not an energy-intensive business and it uses energy mainly for production and office activities. We promise to:
Explore energy-saving measures, enforce energy conservation management and increase energy efficiency on an ongoing basis.
Adopt low-carbon technology in our production for lower GHG emission.
·During the reporting period, the Energy Managemen approach as below list:
Purpose
GHG management is an ongoing effort at MSI. We monitor GHG inventory by surveying the types of energy used and the amounts consumed, and develop awareness of our energy efficiency through disclosure of energy intensity. These insights have enabled us to devise action plans for the purpose of reducing energy consumption and GHG emission.
Policies
Project ManagementISO 5001 Energy Management System
Management Please refer to 5.4 Energy Management-Energy Management Measures
Responsibilities Maintenance SectionCorporate Sustainability Office
Resources
Organization: Maintenance SectionCorporate Sustainability Office Knowledge: Energy saving promotion via posters and email.
Project evaluation for energy management status
Goals and Targets
4% average annual reduction of energy consumption compared to 2007 (baseline year)
ISO 5001 Energy Management System Certification (MSIS)
Assessment Mechanism
To confirm project management efficiency Establish an annual achievement goal Management System(ISO 50001)
Assessment Result
Please refer 5.4 Energy Management-Carbon Reduction Measures Direct and Indirect Energy Consumption Obtained ISO 50001 certification (MSIS)
Communication/ Grievance Stakeholder mail: 080419864@msi.com
Mechanisms
·Energy Management Measures
We adopt a multitude of reduction measures in daily operations. We also advocate for a low-carbon environment and encourage employees to adapt to more efficient ways of spend electricity in order to achieve carbon reduction goals.
Item
Management Measures
Energy Management
Plant dormitories partially use solar heating solutions for hot water supply, and additional heat pumps have been installed to recycle
heat from air compressors. Chiller outlet temperature and chiller operation time have been
adjusted to reduce power consumption. The temperature of air-conditioners in production line and offices is
controlled at 26°C.
Lighting Management
The unnecessary lighting in the office area was shutdown. Lights are turned off during lunch break Lighting control is applied in office areas after business hours
(except for lighting at emergency exits)
Public Facility Management
Photocopiers are being run on power-saving mode, and turned off after office hours and during public holidays.
Drinking fountains are being run on power-saving mode, and turned off during public holidays.
Air conditioner operations are managed area-by-area, turning on only when needed
Energy Conservation
Promotion
The Company offers proposal bonus incentives to encourage energy-saving solutions from employees
Energy conservation dissemination to staff.(eg. EmailPosters ... etc.)
·Carbon Reduction Measures
MSI is not an energy-intensive manufacturer. To improve energy management, we constantly adopt energy-saving measures in the office and make efficiency enhancements to office equipment; in doing so, we reduce the amount of energy consumed and the volume of carbon emitted, which mitigates risks and hazards of global warming and climate change. During the reporting period, MSI made numerous improvements to lighting equipment and air conditioners, while at the same time replaced outdated equipment and implemented new management measures that reduced GHG emission by 6,843.17 tCO2e.
Carbon reduction measures at the MSI
Location
Measurements
Equipment Improvement
Energy Efficiency Improvement
MSIT
Office lighting fixtures have been replaced with LED lights
Replaced 6,669 LED lights, which saves energy by 60% compared to traditional fluorescent lamps.
MSIS
Replacement of air compressorinstallation of inverter chillerswitch to inverter and automated air conditioner system, and integration, synchronization and automated temperature adjustment for air conditioner pump/chiller/cooling tower.
Air conditioners were improved and replaced to reduce power consumption by 13.81%
MSIK
Office lighting fixtures have been replaced with LED lights
Replaced 11,500 LED lamps, which saves energy by 50% compared to traditional fluorescent lamps
Goal Achievements
6,843.17 tCO2e reduction in GHG emissions
·Direct and Indirect Energy Consumption
Direct Energy Consumption
MSI fossil fuels are only used for official vehicles, boilers, and emergency power generation equipment, and cooking at the employee cafeteria in various factories, and are not used for other operational purposes.
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Item
Goal Achievements
Fossil Fuels Consumption
Fossil Fuels Consumption 7,682.0 GJ 35.11%* reduction of indirect energy consumption compared to last year.
Fossil Fuels Consumption
Intensity
Fossil Fuels Consumption Intensity 0.06 GJ/million NTD 0.05 GJ/million NTD reduction of fossil fuels consumption intensity compared to last year.
* : The higher reduction was mainly attributed to increased revenues and Micro Electronics having purchased heat-exchanged hot water from vendors for use by employees.
Indirect Energy Consumption (electricity consumption)
Item
Goal Achievements
Indirect Energy Consumption 264,097.7 GJ Electricity Consumption 6.17 % reduction of indirect energy consumption
compared to last year.
Electricity Consumption Intensity
Indirect Energy Intensity 2.482 GJ/million NTD 0.16 GJ/million NTD reduction of electricity consumption intensity compared to last year.
5.5 Pollution Prevention
While we commit ourselves to developing high-quality gaming products, we also strive to improve the local environment and control the level of pollution generated from our operations. In terms of pollution control, we continue to minimize treatment costs and comply with legal requirements by making improvements to production technology and treatment procedures.
AIR Pollution Prevention
MSI generates air pollutants mainly in the form of VOCs (Volatile Organic Compounds)emitted from auxiliary materials (such as solder fluxalcohol etc.) used in the production process. We adopt exhaust prevention equipment (e.g. active carbon absorption) to treat the exhaust emitted from production, which is released into the environment in strict compliance with local air pollution control laws and emission standards. Air quality (including indoor and operating environment) is monitored regularly to ensure the effectiveness of air pollution control measures. Furthermore, no ozone-depleting substance is used during production and no NOx and SOx is released into the atmosphere.
Office General Air Emissions
VOCs Exhaust Emissions
Active Charcoal Filter
(Activated Carbon Adsorption VOCs)
Ambient Measurement
Pretreatment (Filtering Impurities )
Air Pollution Prevention Control Equipment
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Goal
Management Measures
Control
Optimize Indoor Air
Quality
Reduce storage and use of materials characterized by high volatility and toxicity Use alcohol instead of naphtha for product cleaning Apply control over the use of organic solvent-based products (e.g. air fresheners) at confined spaces and office areas
Air in production and office areas is exchanged regularly to maintain air quality. Random inspections (for CO2, PM2.5 etc) are conducted to maintain air quality. Filters are cleaned and renewed regularly to maintain air quality.
Peripheral Boundary Air Pollution Emission Control
Low-sulfur fuel is used in emergency power generators.
Improvement to pollute production procedures.
nstallation of active-carbon absorption equipment.
Regular testing of air quality in peripheral boundary.
Wastewater Discharge Management
MSI complies with prevailing environmental standards. The Company generates wastewater mainly from living activities, and all wastewater is treated before discharge (for MSIK, wastewater is discharged to Kunshan water treatment plant for collective treatment through direct pipeline connection). The company has real-time monitoring equipment in place to check the quality of wastewater, and wastewater is discharged only when treated to standard. MSI is subjected to regular wastewater quality inspections of the authority, and has managed to meet the required standards. MSI discharged 452,428 tonnes of wastewater during the reporting period (excluding MSIK), up 4,491 tonnes from the previous year. This was mainly due to capacity expansions undertaken by MSIS that resulted in higher employee count and additional needs for steel plate cleaning, and hence the increase in wastewater discharges.
Waste Management
Based on pollution prevention and the producer's responsibility and the aim to meet the requirements of international environmental protection, when designing a product, MSI takes into account the requirements regarding use, disassembly, recycling, and low toxicity of the whole life
cycle to reduce the amount of waste for disposal, alleviate the difficulty of recycling, and improve environmental performance; a qualified outsourcing agency is selected based on the location of the factory to treat the waste accordingly.
·Waste Type
Waste generated by MSI operations is divided into general business waste (subdivided into recyclable and non-recyclable) and hazardous business waste, and are managed according to a environmental management system, in which waste generation, classification and collection, and recycling and transportation are properly managed and recorded. As for the disposal method, qualified waste disposal providers are commissioned to recycle, reuse, incinerate or bury the waste according to the category of the waste to ensure that secondary environmental pollution will not be caused. During the reporting period, the total amount of MSI recyclable waste was 2,989,068 kg, and the total amount of non-recyclable waste was 2,927,915 kg.
·Total Waste
During the reporting period, the total amount of MSI waste was 5,916,983 kg, and the waste density per million revenue was 49.92 kg/million (NT$), which was 342,807 kg total waste reduction from 2017. The 1% waste reduction target for 2018 was achieved.
Item
Goal
Goal Achievements
Future Goals
1% reduction Total Waste 5,916,983 kg
1% reduction
Total Waste
of total waste compared to
5.48% reduction of total waste compared to last year.The waste
of total waste compared to last
last year. reduction target for 2018 was achieved.
year.
Waste Intensity
Regular Disclosure
The Waste Intensity 49.92 kg/million NTD
8.90 kg/million NTD reduction of waste intensity compared to last year.
Continuous annual regular
disclosure
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Peripheral Boundary Noise Prevention
MSI monitors and controls noises caused to the peripheral boundary. The Company engages external surveyors to measure noise levels each year, and keeps track of noises generated from plant activities and equipment on an ongoing basis to ensure compliance with legal requirements. All of our plants are located inside designated industrial zones or science parks and outcomes of the above tests have all conformed with legal requirements, meaning that no disturbance is caused to nearby communities.
5.6 Water Management
MSI focuses on clean production and environmental protection. The waterless manufacturing process is adopted at each plant to produce various products; no effluents are produced in the manufacturing process. The water consumption is mainly based on employees' use of water, and only domestic sewage is produced. 100% of the domestic water source comes from municipal water supply (tap water) and does not from rivers and lakes, groundwater, or the ocean, which has no significant possible impact on water sources and community water.
For the management of domestic sewage, MSI has sewage prevention equipment, which is managed by designated personnel, and the discharge is supervised on a regular basis. The generated effluents are discharged into the sewage management system; the effluents from MSIK are directly discharged to the Kunshan Wastewater Treatment Plant, and the sewage is treated altogether by the treatment plant. MSIS has a central water recycling system; the recycled water is used for irrigation and toilet flushing. All of MSI plants are all located in the industrial zone and are not in ecologically sensitive areas. The results of effluent inspection are all in compliance with local laws and regulations, and show no serious impact on the local ecological environment and relevant habitats.
·Water consumption during the reporting period
Item
Goal
Goal Achievements
Future Goals
Total Water Consumption
1% reduction of total water consumption compared to
last year.
Total water consumption 1,071,974 m3(1,071.974 megaliters) 221,552 m3 reduction of total water consumption compared to 2015 (baseline year) 6.65 % reduction of total water consumption compared to last year.The water reduction target for 2018 was achieved.
The water consumption is mainly based on employees' use of water and we continuous set the water consumption to be 1% lower than last year.
Water Consumption
Intensity
Regular Disclosure
Water consumption intensity 9.04
m3/million NTD
17.13% reduction of water
consumption intensity compared
to 2015 of 15.17 m3/million NTD
(baseline year). 16.19% reduction of water consumption intensity compared
Continuous annual regular disclosure
to 2017 of 10.79 m3/million NTD.
16.19% reduction of water
consumption intensity compared
to last year of 10.79 m3/million
NTD.
·Reclaimed water volume statistics by MSIS during the reporting period
Item
Goal Achievements
Reclaimed Water Volume
Reclaimed water volume 162,833 m3 37.58 % increase of reclaimed water volume compared to last year.
Reclaimed Water 15.19% of total water consumption , and 4.88% increase of volume compared to last year.
Reclaimed Water Intensity
Reclaimed water intensity 1.37 m3/million NTD 37.58 % increase of reclaimed water intensity compared to last year.
*: The reasons for the expansion of reclaimed water intensity are increase the number of employees in order to expand production capacity, and the recycled water is used for toilet flushing and greening.
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6. Love in MSI
2019 MSI CSR Report
6. Love in MSI
Based on the concept thatChange progresses constantly, Service continues silently, Contributions accumulate, Dreams realize step by step. MSI practices CSR commitments, provides the greatest support and assistance. We has long been coordinating with corporate employees to work with stakeholders (such as government agencies, schools etc.) on various charity programs including students' lunch, education, donation and care for socially disadvantaged; all of which are intended to create an equal society that is free of poverty.
MSI public care services and donations item as below table:
Public Care Service Items
The number of public welfare programs
37
Total amount of donations for public welfare(NTD)
24,381,961
The number of corporate volunteers
1,235
Total hours of employee participation (hours)
2,327
The number of benefit students for school lunch
6,911
The number of education assistance program schools
59
The number of benefit schools for education care
12,717
The number of benefit schools for education care
240
The number of blood donors
371
The number of blood bags (250 ml)
624
6.1 Remote Locations Care-School Lunch Fund
Based on the concept thatChange progresses constantly, Service continues silently, Contributions accumulate, Dreams realize step by step. MSI practices CSR commitments, provides the greatest support and assistance. We has long been coordinating with corporate employees to work with stakeholders (such as government agencies, schools etc.) on various charity programs including students' lunch, education, donation and care for socially disadvantaged; all of which are intended to create an equal society that is free of poverty.
Public Welfare Program: School Lunch Fund and Sponsored to purchase locally produced vegetables or rice
MSI has funded elementary schools and junior high schools in remote areas to procure certain Taiwanese own rice or vegetables on a regular basis to promote local rice farming while subsidizing the food ingredients for the schools' lunches, enabling the schools to feel the warmth of society.
During the reporting period, the donating list as below:
Donation Item
Donation Amount Number of Number
(NT$)
Students of Schools
School Lunch Fund
371,790
99
2
Sponsored to Purchase Locally Produced Vegetables or Rice
4,991,085
6,812
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6.2 Sharing Good of Learning-Pluralistic Educational
Education is critical to the progress of a society, and although people may differ in terms of genetics and background, everyone should have fair, reasonable and equal opportunity to quality education. By providing educational resources, MSI hopes to reverse the adverse environment that disadvantaged students are subjected to, and narrow the learning divide at the starting line.
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Education care for disadvantaged students
Public Welfare Program: Tutor Service for Disadvantaged Students
Social resources are utilized to implement MSI'sLove from MSI help to students remedial program for disadvantaged students, which cultivated students' basic learning ability, helped disadvantaged students build self-confidence to develop their potential and create a new society of mutual care and mutual assistance.
During the reporting period, the donating list as below:
Donation Item
Donation Amount
(NT$)
Number of
Students
Number of
Schools
Number of Class
Love from MSI
Education Assistance Program- Tutor Service for
2,864,600
2,044
33
113
Disadvantaged Students
Number of
Lessons
8,931
Public Welfare Program: MSI English Enhancement
Program for Students from Disadvantaged Families
MSI English Enhancement Program for Students from Disadvantaged Families has been launched with social resources to bridge the English ability gap caused by the urban and rural gap, the amount of resources, and the differences in family social and economic conditions, so as to flip education in remote areas.
During the reporting period, the donating list as below:
Donation Item
Donation Amount (NT$)
Number of Schools
MSI English Enhancement
Program for Students from
1,500,000
18
Disadvantaged Families
Number of Lessons
2,005
Science Education
Public Welfare Program: MSI 2018 PowerTech Creative Technology Program for Youth
In response to the rise of Makers andSTEAM- the educational purpose of science, technology, engineering, arts, and mathematics; young people are guided to explore their interest in science and develop their popular science potential through hands-on and popular science creation learning approaches to cultivate new generations of technological talents.In response to the rise of Makers andSTEAMthe educational purpose of science, technology, engineering, arts, and mathematics; young people are guided to explore their interest in science and develop their popular science potential through handson and popular science creation learning approaches to cultivate new generations of technological talents.
2019 CSR 81
2019 MSI CSR Report
During the reporting period, the donating list as below:
Donation Item
Donation Amount
(NT$)
Achievements
Subsidized elementary schools and junior high schools in New Taipei City for the organization of summer camps and PowerTech clubs, and organized group training, courses and events in New Taipei City and on a nationwide scale.
1,000,000
Promoted juvenile technological creation contest as a means to improve hands-on practice and basic science knowledge for students and teachers. Livened up courses taught at schools and aroused students' interest to basic science knowledge and hands-on practice.
During the reporting period, the donating list as below:
Donation Item
Donation Amount
(NT$)
Number of
Students
Number of
Schools
Achievements
Donations were made to the Coding course in
Hsinchu County
Hosted the2018 Coding Carnival (New
Taipei City) Sponsored the 2018 Coding Carnival (Hualien)
1,500,000
2,500
30 elementary
schools in Hsinchu
County received the
Coding course
Event was held at
32
Chung Hwa Senior High School in New
Taipei City
Event was held at
Hwa-Gang Junior
High School in
Hualien County
Public Welfare Program: MSI sponsored to coding education and Taiwan coding education festival
AI and robotics are expected to play a major part in our future society, which makes programming and design two very important subjects in our curriculum. Through a collaboration with Coding, private educators and government agencies, MSI launched a course called Codingthat aims to help children develop skills such as logical analysiscreative thinkingprocess controlproblem solving and collaborative learning to better capture opportunities of the digital economy and improve competitiveness of the new generation.
Public Welfare Program: MSI sponsored to school e-sports Camp
Taiwan currently has over 60 schools that offer e-sport classes or courses. To support e-sports education, MSI organized e-sport camps at 12 tertiary institutions nationwide in 2018, which provided eager students with in-depth knowledge about the hardware, software and industry backgrounds needed to support a competent e-sport environment.
82
During the reporting peri od, the donating list as below:
Donation Item
Number of Number of Students Schools
Achievements
MSI School e-sports Camp
862
Students were educated on the
12
e-sport industry and possible career
development.
Public Welfare Program: MSI sponsored to school broadcasting study camp for E-sports
E-sports has progressed to the point that online viewers now rival, if not exceed, viewers of conventional sport matches such as NBA and NFL, which makes e-sport game coverage an increasingly popular business in the media industry. As the world's leading brand of gaming peripherals, MSI is dedicated to supporting the e-sports industry in Taiwan, and has collaborated with Pi a popular streamer, to organize a series of E-sport Game Coverage Workshopat Overseas Chinese University and Chi-Ying Senior High School. MSI also offers an internship program as an opportunity for participating students to apply knowledge in practice, and help jump start career for the new generation of gamers.
During the reporting period, the donating list as below:
Donation Item
MSI School Broadcasting Study Camp for E-sports
Number of Schools
Achievements
Participants were given a thorough explanation
on how e-sport games are covered, as well as the
2
personnel, technologies, hardware and software
needed to progress a game and present game
images properly.
6.3 Flip Life-Disadvantages Groups Help
The underprivileged tend to be the most non-influential and neglected group of people in the society, and their basic rights can be easily sacrificed over the course of social changes. This group of people requires timely and adequate support in terms of social security, healthcare, education and employment in order to break free of the prevailing vicious cycle for a life of hope.
Public Welfare Program: Flight with Dreams Fund for Students from Disadvantaged Families
MSI has been a long-term member of the Committee of New Taipei City Flight with Dreams Fund. This committee, formed by a panel of representatives from the industrial, public and academic sectors, selects students with high performance from disadvantaged families and sponsors the students with scholarships so that they can focus on learning, complete their education and have enjoyable years on campus without having to worry about tuition fees and living expenses. This scholarship aims to improve the lives of students with good academic performances from rural areas of New Taipei City.
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2019 MSI CSR Report
Public Welfare Program: New Taipei City Government
Family Day for Children in Special Education
To enable students in special education to have diverse life experiences, the Education Department, New Taipei City Government, holds Family Day education days for students in special education in the second semester, allowing these children who seldom travel far away to have the opportunity to have different life experiences. Through the activities and shuttle bus services arranged by the Education Department, parents' burden is alleviated and the children are more willing to go outdoors. This program helps these little angels to study and grow up happily. MSI has sponsored this program for fourth consecutive years and has joined forces with the public group of Taiwan Taxi Public Group to help these young angels to experience life through different activities.
During the reporting period, the donating list as below:
Year Organizer
2015
2016
2017
2018
Education Department of New Taipei City Government Taiwan Taxi Public Group
Sponsor
MSI
Co-organizer
Wei Chuan Pushin Ranch
Ching Yang Aqua Marine Enterprises
Taipei Philharmonic
OrchestraSistema Taiwan
Museum of Marine Science
& Technology
Green World Ecological
Farm
LEOFOO Village
Sponsorship Fee (NTD)
140,000
170,000
231,550
246,470
The number of participants
400
400
400
400
The number of
participating
80
80
schools
80
80
84
Public Welfare Program: Strategic Alliance Cooperation
Program
Currently, the society's attention on long-term nursing has been largely focused on caring for disabled persons, while long-term stress and issues concerning caregivers tend to be overlooked. Having recognized caregivers as a hidden risk amidst an aging society, MSI specifically finances local caregiving institutions so that they may recruit staff in greater diversity (nursesvolunteer workerslocal/foreign nursing staff) to accommodate the needs of high-risk caregivers and support them multiple times a day, over a short period of time, on flexible occasions and within small areas. With this additional support, we hope to cover the shortfall of long-term nursing resources provided by the government.
During the reporting period, the donating list as below:
Year
Items
Long-Term Care Facilities
Number of service people
2017
2018
All In One Services Family Caregiver Services Respite Care Services Holiday Care and Supportive Services for the Family Caregivers
Hondao Senior Citizen's Welfare Foundation
369
Donation amount (NTD)
826,440
495,400
Public Welfare Program: Sistema Taiwan Cooperation
Program
The mission of Sistema Taiwan is mainly to provide musical education for disadvantaged children, and inspire new possibilities through art. Through this program, we are able to discover musical talents spawning within children, which provide us with the motivation to continue what we do. In 2017, MSI introduced music as a life-changing opportunity and launched a series of musical education of charitable nature. The education program is being sponsored through Sistema Taiwan, which supplies teaching staff and instruments for children located in Ruifang and Shuangxi. Through music, we hope to enrich the minds of children and help them develop positive attitudes to withstand the hardship in life.
During the reporting period, the donating list as below:
Year
2017
2018
Items
170. Sponsored Sistema Taiwan for musical instruments and teaching staff.
Donation amount (NTD)
300,000
350,400
Public Welfare Program: Donated the Upper and lower
limb rehabilitation training equipment for the New
Taipei City Hospital.
In addition to pursuing breakthrough in business performance, MSI is also devoted to charity contribution. After being notified by New Taipei City Department of Health that New Taipei City Hospital was having difficulties acquiring new equipment, we assessed the situation and ultimately decided to donate two sets of training equipment support treatment of upper and lower extremities and maximize the effect of physiotherapy at New Taipei City Hospital for persons with disability, elders and the socially disadvantaged in the Sanchong area. This equipment is believed to have been used to its maximum potential given the fact that it is suitable for almost all patients.
During the reporting period, the donating list as below:
Items
Quantities
Donation amount (NTD)
The Upper and lower limb rehabilitation training equipment
2
500,000
2019 CSR 85
2019 MSI CSR Report
Public Welfare Program: 2018 The E-sports Competition
of Corporate Charity
During the 2018 Charity Tournament organized by Blizzard Entertainment, 7 renowned companies including MSI were invited to compete for 11 weeks straight, and MSI had taken this opportunity to demonstrate to the world its professional gaming spirit while at the same time contribute to charity with the goal ofgiving back to the society. Together, participating businesses of this event raised NT$1 million in donation forAngel Heart Family Social Welfare Foundation, and contributed to the care of children with special needs. Through this e-sport tournament, we also hoped to direct the public's attention to caring for the socially disadvantaged.
During the reporting period, the donating list as below:
Items Registration fee donation Total amount for fund-raising campaign
Sponsorship Fee (NTD)
120,000
1,000,000
Public Welfare Program: MSI public welfare lotto activities
In recent years, there has been competition among businesses in hosting lavish year-end banquets featuring renowned celebrities as a means to reward employees. Contrary to this approach, MSI began exploring different elements that would make year-end banquets as joyful as they are meaningful, and thus the idea ofcharity banquet started to emerge in MSI. Since 2016, we have been inviting employees
86
to join us in charity during year-end banquet by purchasing scratch cards and lottery tickets. One lucky winner would be drawn at the end of the event to claim 50% of the prize pool, while the other 50% is donated to charity organizations.
During the reporting period, the donating list as below:
Year
Items
Donation amount (NTD)
2016 68,900
2017 Cash donation
99,505
2018 136,050
Eden Social Welfare
Recipient Unit
Foundation Taiwan Fund for
Childern and Families
Eden Social Welfare Foundation
Eden Social Welfare Foundation
6.4 Social Engagement-Common Good
Driven by the mission topromote decency in the society, MSI fulfills its duty as a corporate citizen through programs includingcorporate volunteer andcommunity feedback; both of which are aimed to direct corporate resources and employees' attention towards the environment, the community and charity where we are able to contribute influence to good deeds.
Corporate Volunteers Public Welfare Program: Diversity Service of Corporate Volunteers
MSI encourages employees to participate in social services during off hours. Through internal club activities, such as deep-root education,
environmental education, and caring for society, to spread love in the society, motivating employees to be committed to the organization, shaping the organizational culture together, drive social integration, community cohesion and community change.
Diversity Participation
The 26th Northern Taiwan Special Cheerleading Tournament for Children with Intellectual Disabilities
Clubs
Service Achievements
Volunteer Club
Cheer Leading Competition of the Mentally Challenged is an attempt to improve learning of the mentally challenged by stimulating their minds with music and dance. The event has been successful not only in raising participants' selfconfidence, but also gathered more support to the parents of the mentally challenged. The event received total participation count of 18 from corporate volunteers during the reporting period.
Potted plant auction
Horticultural Club
Members of the horticulture club assemble after office hours to engage in plantation activities. They involve themselves in a number of voluntary activities such as making charity purchase of garden productsarranging DIY sessionsinvoice donation and providing plant care. Through the horticulture club, employees are able to indulge themselves in the satisfaction of growing plants and participating in charity. Donations totaling 407 invoices and NT$6,300 were received during the reporting period, and were entirely donated to Mennonite Social Welfare Foundation and Taiwan Fund for Children and Families, respectively.
Beach Cleanup
Swimming Club
The coastal cleanup was an event organized by MSI's swimming club with an emphasis on environment care and clean Earth. It involved employees and family members in making physical contributions to Earth's sustainability. A one-day coastal cleanup even was organized at Laomei in the northern coastline during the reporting period
Charity performance
Dance Club
MSI encourages employees to seek balance between work and life, and members of the dance club had taken this advice to heart by rallying coworkers to watch the show - The Witch and the Cauldron by IfKids Theatre Studio. The dance club offered to donate NT$30 for every employee and family member who signed up for the show. A total of 212 people joined to watch the show, which resulted in NT$6,360 being donated to Child Welfare League Foundation.
Design Badge Charity Auction
Photography Club
At the end of 2018, members of the photography club invited co-workers to join them in charity! ! For a small cost, employees were given the opportunity to make their own magnetic badge while all proceeds collected by the photography club were donated to charity. Proceeds totaling NT$10,000 were collected from the charity sale, and all of which were donated to St. Camillus Center For Intellectual Disability.
Uniform Receipt for Spring Couplets
Employee Welfare Committee
As the Chinese New Year approached, the EWC invited employees to participate in charity by offering them the opportunity to donate invoice in exchange for Chinese couplets or Gaming packs. The event served as a reminder to care for those in need as employees prepared themselves for the upcoming celebration. 2,000 invoices were gathered during the reporting period, and all of which were donated to Taiwan Fund for Children and Families.
Volunteer service at Datong Children's Home
Golf Club
Members of the golf club assisted Datong Children's Home with maintenance tasks such as cleanup, painting and weeding so that residents may have a renewed and comfortable space to live in. A total of 25 employees had participated and made contributions during the reporting period. By providing assistance to children's home, the Company was able to improve reputation and gain insight into the operations of the social welfare institution.
2019 CSR 87
2019 MSI CSR Report
Giving Back to the Community
Public Welfare Program: Strengthening Community Cohesiveness
Activities
Contents
Zhonghe Village Deity Cultural Festival
The village deity had most followers and safeguard local communities. The Zhonghe district has many distinctive village deity temples, including the wellknown Hongludi and Lixing village deity temples. As a local enterprise based in Zhonghe, MSI offered sponsorships to distinctive local cultural festivals and ceremonies to share the blessings with local people and pray for the peace and prosperity of the country. A total of NT$350,000 was donated during the reporting period.
Greening maintenance of Huazhong Bridge Slope Green Space and Zhonghe
Qiaohe Rd.
MSI is headquartered in Zhonghe District, New Taipei City. The vicinity is dominated by industrial areas. Frequently, large and small vehicles enter and exit, and the surrounding environment does not have too much green beautification. Therefore, MSI Technology proposes to adopt the Zhonghe Qiaohe road to the Zhonghe District Office. The tree plan hopes to enhance the beauty and safety of the street tree and benefit the community. A total of NT$1,000,000 was donated during the reporting period.
88
6.5 Cherish Natural Resources-Environmental Friendly
Environmental friendliness arises from mankind's respect for nature, and could only be inspired through advocacy of environmental culture and civilized values. This awareness enables us to find the right balance between economic gains and sustainability that facilitates the perpetual renewal of natural resources.
Public Welfare Program: Defending Our Environment
Environmental Participation
Forestation at Jinshan Coast
Contents
Planting trees is the beginning, and tree protection is even more important. It is even more difficult to nurture and protect seedlings in coastal forests. Forestation at Jinshan Coastwas first introduced by MSI back in 2016, and over a 3-year period, the Company has mobilized more than 400 employees to plant 5,200 seedlings. Today, forestation has become a highly participated event within the organization. From 2016 until the reporting period, MSI had planted trees with the capacity to absorb 170,820 kg of CO2.
Wugu Wetlands Ecological Protection Program
Wugu Wetland has the highest density of birds in Northern Taiwan, and owing to the efforts of The Society of Wilderness, this area has been designated as a national wetland. In recognition for the contributions made by The Society of Wilderness to the wetland, MSI donated NT$500,000 for the 2nd year to support The Society of Wilderness in restoring Wugu Wetland in 2018. In addition to sponsoring the maintenance of Wugu Wetland, MSI also organizes internal seminars to educate employees on environmental issues, plastics reduction and features of Wugu Wetland, as well as swallow-watching tours. Slowly and gradually, we help employees develop green habits and remind everyone to treasure the environment we live in.
Original Design FarmingFind a Farmer to Grow Organic Rice
MSI recognizes the idea of Nanao Natural Farm and adopted around 0.5 hectare of farmland; Nanao Natural Farm is responsible for rice milling and ploughing on behalf of MSI. When the output exceeded the guaranteed yield, the exceeding amount would be shared evenly among all the farming parties involved. MSI donates the harvested rice to the Food Bank of the Social Welfare Department of New Taipei City so that disadvantaged groups can also enjoy delicious rice. Hopefully, this donation can encourage every sector of the society to respond to the House of Happiness, Goods Bank program.2018 is MSI the 2nd year join this program and offered sponsorship fee totally NT$ 500,000. A total of 2,850 kg of rice was donated during the reporting period.
6.6 Community Relations-Resource Donation
Giving back to the societyhas been an important part of MSI's CSR efforts, and by donating computers to communities in need, we demonstrate our resolve to help move the society forward and send the message that everyone has the ability to contribute to charity one way or another.
Public Welfare Program: Donation of Computers
Recipient Organization
Activities
Hualien Caliewan Social Caring Association
Hualien County PNZ Social Welfare Association has been offering free after-school tuition for children of indigenous people since 2005. Computers used by the association were too outdated to run the library management software, and after learning the problem, MSI offered assistance to upgrade hardware and donated 12 desktop PCs. Because of the added hardware, up to 12 students may receive remote one-on-one teaching on Mandarin, English and Mathematics courses at the same time.
R.O.C. FSCI
Founded in 1990, ROC Federation of the Spinal Cord Injured (FSCI) is an organization aimed at rallying support from the society to help people with spinal cord injuries become self-dependent and re-adapt social life, and in doing so relieve the burden imposed on the family, the society and the nation as a whole. FSCI had approached MSI for assistance because their computers were too outdated to run modern software, and after investigating the issue, we provided them with a desktop PC that can be used to support consultation and assistance for the spinal cord injured.
Social Welfare Department, New Taipei
City Government
New Taipei City Social Welfare Department has community service stations available to serve elderly citizens, and a significant part of their service involves data input, which makes computer literacy a basic skill and computers an essential learning tool. Useful as computers may be, they often pose financial burden to service stations that have limited resources. With the right equipment, these service stations will be able to realize their full potentials and provide a friendly environment that cares for and improves the lifestyle of elders in the local community. After being made aware of this shortcoming, MSI donated 23 desktop PCs to 23 service stations located throughout the city to equip them better for the globalized era.
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2019 MSI CSR Report
Taiwan Alliance for Advancement of Youth
Rights and Welfare
Young Studiois a facility created by New Taipei City Government within the premise of Yonghe Youth Rental Home. The studio, currently managed by Taiwan Alliance for Advancement of Youth Rights and Welfare, has been designed with a teenage theme with help from architecture aesthetics experts and MSI. Similar to the idea of job cafe in Japan, the studio is divided into three sections. MSI installed 10 desktop PCs at the studio to support counseling and business startup consultation for young adults.
Hualien Hsi-Fu Elementary School
Indigenous people in Hualien County have long been a financially disadvantaged group, and recent changes in demographics have further altered the household structure, thus giving rise to single-parent family, grandparenting and new immigrants. The lack of care and financial resource has put children at a learning disadvantage and deprived them of hope for the future. With the 3 computers donated by MSI, Hualien County Government's tuition aid team is able to experiment new solutions through a Digital Tuition Aid Pilot Platform, and take practical steps toward building children's basic learning capacity as well as hope for the future.
The Cerebral Palsy Association
Children with cerebral palsy are at risk of muscular atrophy due totension,and in an attempt to stimulate muscle activities and expand vision of children with cerebral palsy, The Cerebral Palsy Association of R.O.C. has introduced aComputer Workshopled by professional instructors that guides children with cerebral palsy through basic typing, computer skills and into the world of Internet. To help improve interpersonal relations, the workshop also teaches children to make contact with the world through social network. Having learned of the fact that the association lacks the budget to purchase computer equipment, MSI donated 8 desktop PCs to help people with cerebral palsy learn and exercise arms and muscles. Furthermore, by connecting them to the Internet, we helped expand their vision and quench their thirst for knowledge.
Fun Heart Taipei Public Welfare Caring
Association
ROC FUN Social Welfare Association has always placed great emphasis on children's education. In the last year, the association organized a number of educational activities targeting civil issues, including Urban News Reporter, at local communities, and arranged a series of after-school studies, creative courses, and information studies to help build children's character. With the 10 laptops donated by MSI, the association was able to host courses on Scratch programming at local community centers and churches, which helped improve children's learning of programming language for a more competitive career in the IT industry.
6.7 Instant Care-Emergency Assistance
In 2018, a 6.4-scale earthquake occurred at Hualien, which resulted in the collapse of one building, severed damage to roads and bridges, and people being confined and trapped. Following the earthquake, MSI donated NT$5 million to be used specifically for disaster relief and recovery for victims in Hualien. The donation was made not only as part of our corporate social responsibilities, but out of care for Hualien residents as well.
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Annex I. GRI Standards Content Index (2016)
GRI 102: General Disclosures 2016
Topics
Disclosure Items
102-1 Name of the organization
102-2
Activities, brands, products, and services
102-3 Location of headquarters
102-4 Location of operations
102-5 Ownership and legal form 102-6 Markets served
102-7 Scale of the organization
102-8
Information on employees and other workers
102-9 Supply chain
102-10
1.
Organization
Profile
102-11
Significant changes to the organization and its supply chain
Precautionary Principle or approach
102-12 External initiatives
Related Report Sections 2.1 Company Overview
Page 16
Note/Omissions
2.1 Company Overview
16
2.1 Company Overview
2.1 Company Overview-Operations Worldwide Annual Report P.122-P.125
2.1 Company Overview
2.1 Company Overview
2.1 Company Overview Annual Report P.97-P.100
3.2 Employee Profile
1.3 Stakeholder Identification and Issues 4.4 Supplier Management
About this report
16
17
16 16
16 33
11 57
-
No signi cant changes
2.4 Risk Management -
21
·Comply with the requirements of Taipei Exchange Rules Governing the Preparation and Filing of Corporate Social Responsibility Reports by TPEx Listed Companies and Corporate Social - Responsibility Best Practice Principles for TWSE/GTSM Listed Companies. ·Respond to external initiatives such as the UN SDGs, RBA Guidelines, ISO 26000, Responsible Minerals Initiative (RMI).
102-13 Membership of associations
2.7 Relations with Associations
26
2. Strategy
102-14
Statement from senior decisionmaker
Letter from the Chairman and General Manager (CEO)
-
3. Ethics and Integrity
102-16
Values, principles, standards, and norms of behavior
2.5 Business Ethics 2.6 Legal Compliance
23 25
4. Governance
102-18
Governance structure
102-40 List of stakeholder groups
102-41 Collective bargaining agreements
5. Stakeholder Engagemen
102-42
Identifying and selecting stakeholders
102-43
Approach to stakeholder engagement
102-44 Key topics and concerns raised
102-45
Entities included in the consolidated financial statements
102-46
Defining report content and topic Boundaries
102-47 List of material topics
102-48 Restatements of information 102-49 Changes in reporting
2.3 Governance Structure
20
1.3 Stakeholder Identification and Issues
11
3.4 Employee Relations- Meeting
Communications (Environmental
Safety and HealthCollective
BargainingDepartment Meeting 38
Management Meeting)
43
3.6 Occupational Safety and Health-
EnvironmentSafety & Health
Committee
1.3 Stakeholder Identification and Issues
11
1.3 Stakeholder Identification and Issues
11
1.3 Stakeholder Identification and Issues
11
About this report
-
About this report
-
1.5 The Scope and Boundary of Material Topics in the Report
13
-
-
Update of historical data
None
102-50 Reporting period
About this report
-
6. Reporting 102-51 Date of most recent report
About this report
-
Practice
102-52 Reporting cycle
About this report
-
102-53
Contact point for questions regarding the report
About this report
-
102-54
Claims of reporting in accordance with the GRI Standards
About this report
-
102-55 GRI content index
GRI content index
- This table
102-56 External assurance
Third Party Assurance Statement
95
2019 CSR 91
2019 MSI CSR Report
Material Topics
GRI Standards & Disclosure
GRI Standards & Disclosure
Page
Note/ Omissions
GRI 103
Management Approach 2016
103-1
GRI 201 Economic Performance 2016
103-2 103-3
201-1
Explanation of the material topic and its boundary
1.3 Stakeholder Identification and Issues
1.4 Identification of sustainability
11
development Issues
12
1.5 The Scope and Boundary of Material 13
Topics in the Report
The management approach & its components Evaluation of the management approach
2. Corporate Governance-Corporate Governance Commitments
16
Direct economic value generated and distributed.
2.2 Financial Performance
19
GRI 205 AntiCorruption
103-2 103-3
The management approach & its components Evaluation of the management approach
2.5 Business Ethics-Ethical Commitment
23
2016
205-1
Operations assessed for risks related to corruption
2.5 Business Ethics-Business ethics risk assessment
23
103-2 GRI 302 Energy 103-3 2016
The management approach & its components Evaluation of the management approach
5.4 Energy Management-Energy Management Commitment
74
302-4 Reduction of energy consumption
5.4 Energy Management
74
GRI 305 Emissions 2016
103-2 103-3
The management approach & its components Evaluation of the management approach
5.3 Greenhouse Gas Management-GHG Management Commitment
72
305-1 305-2
Direct (Scope 1) greenhouse gas (GHG) emissions
Energy indirect (Scope 2) greenhouse gas (GHG) emissions
72
5.3 Greenhouse Gas Management-GHG Emissions
72
GRI 307
103-2 103-3
The management approach & its
components
5.1 Environment Management Policy
Evaluation of the management approach
68
Environmental
Compliance 2016
2.6 Legal Compliance
307-1
Non-compliance with environmental law 5.1 Environment Management Policy-
and regulations
Environmental Management Measures
25 69
and Performance
GRI 401
103-2 103-3
The management approach & its
components
3.1 Employee Policy
Evaluation of the management approach
28
Employment
2016
3.2 Employee Profile-During the
401-3 Parental leave
reporting period, the parental leave
35
status at MSIT (%)
103-2
GRI 414
103-3
Supplier Social
The management approach & its
components
4.4 Supplier Management
Evaluation of the management approach
57
Assessment
2016
414-1
New suppliers that were screened using 4.4 Supplier Management-Supplier
social criteria
Selection and Responsible Sourcing
60
GRI416 Customer
103-2 103-3
The management approach & its
components
4.2 Product Responsibility
Evaluation of the management approach
53
Health and
Safety 2016
416-1
Assessment of the health and safety impacts products and service categories
4.2 Product Responsibility
53
92
Other Concerns Topics
GRI Standards & Disclosure
302-1
Energy consumption within the organization.
GRI 302 Energy 302-3 2016
302-5
Energy intensity
Reductions in energy requirements of products and services
GRI 303 Water and Effluents 2018
303-3
Water withdrawal
GRI Standards & Disclosure
Page Note/Omissions
75 5.4 Energy Management-Direct and Indirect Energy Consumption
75
4.1 Product Sustainability-Product Ecodesign/Energy Saving Product
52
5.6 Water Management
78
GRI 305 Emissions 2016
305-4
Greenhouse gas (GHG) emissions intensity
5.3 Greenhouse Gas Management
72
GRI 306 Effluents and Waste 2016
306-2
Waste by type and disposal method
5.5 Pollution Prevention-Waste Management
76
GRI 308 Supplier Environment Assessment 2016
GRI 401 Employment 2016
GRI 403 Occupational Health and Safety 2018
308-1
New suppliers that were screened using environmental criteria
4.3 Hazardous Substances Management-Green Product Management (GPM) 4.4 Supplier Management-Supplier Selection and Responsible Sourcing
56 60
Benefits provided to full-time
401-2
employees that are not provided to temporary or part-time
3.1 Employee Policy 3.5 Healthy Workplace
28 38
employees
403-5
Worker training on occupational health and safety
3.6 Occupational Safety and Health-Education and Training of EnvironmentSafety & Health
44
GRI 404 Training an Education 2016
404-1 404-3
Average hours of training per year 3.3 Employee Development-
per employee
Occupational Development Planning
36
Programs for upgrading employee skills and transaction assistance programs
3.1 Employee Policy-Fair Performance Assessment
31
GRI 406 NonDiscrimination 2016
406-1
Incidents of discrimination and corrective actions taken
3.1 Employee Policy-Friendly and
Healthy Workplace 3.3 Employee Development-During the reporting period, human rights
30 37
courses and training 3.4 Employee Relations-Reporting
38
Channels (Business Ethics/Legal/
ESH complaints/Sexual Harassment
Grievance)
GRI 418 Customer Privacy 2016
418-1
Substantiated complaints
2.6 Legal Compliance
concerning breaches of customer 4.5 Customer Services amd
privacy and losses of customer Satisfaction-Customer Privacy and
25 64
data
Personal Information Protection
Annex II. ISO 26000 Index
Core Subjects and Issues
Organizational Governance
Decision-making processes and structures
Due diligence
Human rights risk situations
Related Report Sections
2.3 Governance Structure
2.5 Business Ethics 3.5 Healthy Workplace
Page 20 23 38
Note
Avoidance of complicity
3.5 Healthy Workplace
38
Resolving grievances
3.4 Employee Relations
Discrimination and vulnerable Human Rights groups
Civil and political rights
3.4 Employee Relations 3.6 Occupational Safety and Health-EnvironmentSafety & Health Committee
Economic, social and cultural rights
Fundamental principles and rights at work
3. Employee Value 3.3 Employee Development
Employment and employment relationships
3.1 Employee Policy 3.2 Employee Profile
Conditions of work and social protection
3.5 Healthy Workplace
Labor Practices Social dialogue
1.3 Stakeholder Identification and Issues
Health and safety at work
Human development and training in the workplace
3.5 Healthy Workplace 3.6 Occupational Safety and Health
3.1 Employee Policy 3.3 Employee Development
Prevention of pollution
5.5 Pollution Prevention
37 All MSI operating policies and systems are not subject to the
influence of gender, religion, race, nationality, or political parties.
37 43
28
35
28 33
38
11
38 42
28 35 76
Sustainable resource use Climate change mitigation and The Environment adaptation
Protection of the environment, biodiversity and restoration of natural habitats
Anti-corruption
5. Environmental Value 5.2 Climate Change Management
2.5 Business Ethics 2.6 Legal Compliance
68
70
The MSI operating plants are all
located in industrial parks, all
of which have passed the EIA and have no relevant impact or
influence on the surrounding
organisms.
23 25
Responsible political involvement
Fair Operating Practices
Fair competition
Promoting social responsibility in the value chain
Respect for property rights
2.6 Legal Compliance 4.4 Supplier Management 2.5 Business Ethics 2.6 Legal Compliance 4.4 Supplier Management
MSI maintains a neutral stance
on politics, does not engage
in any political donations or lobbying, and does not
participate in relevant political
activities.
25
57
23 25 57
Fair marketing, factual and unbiased information and fair contractual practices
2.5 Business Ethics 2.6 Legal Compliance
23 25
Protecting consumers' Health and 2.6 Legal Compliance
25
safety
4.2 Product Responsibility
53
Sustainable consumption
4.1 Product Sustainability 4.2 Product Responsibility 4.5 Customer Services amd Satisfaction
50 53 63
Consumer service, support, and complaint and dispute resolution
Consumer Issues Consumer data protection and privacy
4.5 Customer Services amd Satisfaction
63
Access to essential services Education and awareness Community involvement Education and culture
6.4 Social EngagementCommon Good-Contribute to the society
Through digital forums, such as
technology forums and online
communities, MSI combines the
experiential marketing of key
stores with business partners in
different sectors to allow users to understand the industrial
development and technological
exchanges. For relevant
information, please visit the MSI
official website: https://www.
msi.com/index.php.
86
6.2 Sharing Good of Learning-
Pluralistic Educational 6.3 Flip Life-Disadvantages Groups Help 6.5 Cherish Natural Resources-
80 83 88
Environmental Friendly
Employment creation and skills
3.1 Employee Policy
28
development
3.3 Employee Development
35
Community
Involvement and Development
Technology development and access
2.1 Company Overview
16
Wealth and income creation Health
2.2 Financial Performance 3. Employee Value 3.2 Employee ProfileEmployment
19 28 33
3.5 Healthy Workplace 3.6 Occupational Safety and Health
38 42
Social investment
6. Love in MSI
80
2019 CSR 93
2019 MSI CSR Report
Annex III. United Nation Global Compact Comparison Table
Category
10 Principles
Human Rights
Businesses should support and respect the protection of internationally proclaimed human rights;
Make sure that they are not complicit in human rights abuses.
Labor
Environment Anti-
Corruption 94
Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;
The elimination of all forms of forced and compulsory labor;
The effective abolition of child labor; and
The elimination of discrimination in respect of employment and occupation.
Businesses should support a precautionary approach to environmental challenges;
Undertake initiatives to promote greater environmental responsibility; and
Encourage the development and diffusion of environmentally friendly technologies. Businesses should work against corruption in all its forms, including extortion and bribery.
Related CSR Report Section
2.5 Business Ethics 2.6 Legal Compliance
3.1 Employee Policy-Friendly and Healthy Workplace 3.4 Employee Relations- Meeting Communications (Environmental Safety and HealthCollective BargainingDepartment MeetingManagement Meeting)
3.1 Employee Policy-Friendly and Healthy Workplace
3.1 Employee Policy-Friendly and Healthy Workplace 3.4 Employee Relations
5. Environmental Value
4.1 Product Sustainability 5. Environmental Value
4.1 Product Sustainability
2.5 Business Ethics 2.6 Legal Compliance
Page 23 25
28 38
28
30 37
68
50 68
50 23 25
Annex IV. Assurance Statement
2019 CSR 95
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