Evergreen_CSR_2016.pdf - EVERGREEN MARINE CORP.

About the CSR Report 4

A Message from the Chairman 6

Stakeholders and Issue Management 9

01、Business Status and Operating Strategies 24

I. Company profile 26

II. Operating strategies 30

III.Compliance 33

IV. Risk control 35

02、Partnership and Customer Management 38

I. Supplier management 40

II. Associate partner 44

III.Customer management 45

IV. Cargo safety 48

03、Environmental protection and Sustainable Shipping 50

I. Energy management 52

II. Emission management 59

III.Waste and water resource management 61

IV. Sustainable shipping development 68

CONTENTS

04、Care for employees and Environmental Safety 72 I. Talent attraction and development 74

II. Employee communication and care 82

III.Protection of working environment 86

05、Promotion of Education and Contribution to Society 88

I. Promotion of education 90

II. Contribution to society 92

54 2016 EMC CSR Report

｜｜Corporate Social

Responsibility Report

About the CSR Report

Interval of issuanceWe have issued the Corporate Social Responsibility (CSR) Report

since 2013. The CSR Report covers the actions and achievements of the Evergreen Marine in regards to its economical, social, and environmental aspects in 2016 (from January 01, 2016 to December 31, 2016).

We issue the CSR Report every year, the 2015 report was released on September 30, 2016. The next issue will be released in November 2018.

Editorial policyAll the local or important operating bases disclosed or referred

to in the CSR Report indicate those in the Taiwan area. To completely

disclose relevant performance information, the information of the fleet regarding the environmental and educational training also involves our subsidiaries in Britain and Singapore. The information about the expatriates covers the individuals under the centralized management the Evergreen Group (Evergreen International Corporate). There is no substantial change of the Company in terms of the scale, organizational structure, or ownership that may seriously affect the CSR Report during the report period. For more information about the organizational structure of the Company, refer to Pages 16 to 18 of the 2016 Annual Report.

The information is disclosed under the editing structure of the CSR Report according to the “core＂ options of the GRI G4 (Global Reporting Initiative).

External assuranceWe commissioned Deloitte Taiwan to conduct limited assurance in accordance with the

ROC Statements of Assurance Engagements Standards No 1. “Assurance Engagements other than Audits or Reviews of Historical Financial Information＂.

Contact informationYou are welcome to download the CSR Report from our website https://www.

evergreen-marine.com/tw/ (PDF file).

If you have any question about the CSR Report, please contact us:

CSR Committee, Evergreen Marine CorporationAddress: No.163, Sec. 1, Xinnan Rd., Luzhu Dist., Taoyuan City Tel.: 03-312-3247E-mail: [email protected]




The year 2016 was a tough year for all the container shipping service

providers in the world. In addition to the low growth rate of the global trading

business and the recession of the global economy, the acquisition and merger of

the five giants in the shipping industry, the bankruptcy of the international top-

seven shipping companies. The increasingly dropped freight due to imbalance of

the supply and demand on every shipping route brought great challenge to the

operation of the shipping companies. In the pessimism of the participants over the

development of the market, all of the Evergreen folks persisted in keeping with the

operating philosophy of sustainability and positively enhanced the management

of the operating income and cost, increased the fuel-saving efficiency, extended

the cooperation with our strategic associate partners to develop new markets,

and improved the training of the employees in order to strengthen the core

competitiveness of the Company. Thanks to the growth starting in the fourth

quarter, all the business indicators including the utilization of the shipping space

and the average freight income have been substantially improved.

Regardless of the unprecedented impact on the container shipping market

in 2016, we always believe that we must be serious with environmental protection,

employee care, and public service responsibility under our operating philosophy of

sustainable development while pursuing the highest income and shareholders´

interests, because only placing more importance on the environmental protection

and CSR can we demonstrate the value

of the sustainable development.

In the environmental

protection, all of our new

ships meet the requirements

of the latest environmental

protection standards in

the industry. We also take

c o n t i n u a l a c t i o n s t o

improve existing fleets and, thus,

e n s u r e c o m p l i a n c e w i t h

the requirements of the

California Air Resources

B o a r d ( C A R B ) . W e

frequently update the

environmental protection pages on our website to describe our emission control and waste disposal

measures for the fleets, and instantly reply to the query of our customers about the information of our

environmental protection. We won the Excellent Environmental Protection Award from the Los Angeles

Harbor Department as a praise for our outstanding performance in executing the Vessel Speed Reduction

(VSR) program of the San Pedro Bay, California, in 2015 and our contribution to the protection of the

environment. In addition to the environment-friendly fleets, the e-Commerce website (ShipmentLink.com)

of the Company introduced a comprehensive service platform to continuously improve the quality of our

e-Service. We introduced online registration and remittance information upload functions in the Greater

China Region to enable the customers to understand the status of the remittance by clicking the mouse.

The navigation safety is our most concern in the training of the employees in terms of the

management and business operation. The EVERGREEN Seafarer Training Center is equipped with

comprehensive training facilities and provides various training courses. A total of 30 professional training

courses in 359 phases were held in 2016 and 2,576 seafarers participated in the training. Our seafarer

training center is recognized by the U.K. Maritime and Coastguard Agency (MCA) and the Maritime and

Port Authority (MPA) of Singapore. The “ship-shore rotation＂ system originated from us has been a good

example in the industry since it was put into practice. It not only provides an opportunity for the seaman

to work on land, but also facilitates the conformity of the shipping schedule arrangement, allocation of

shipping space, loading and unloading at the wharf, and ship repair to the requirements of the marine

work with the help of the outstanding seamen and their professional knowledge. This is very helpful to

improve the overall operation efficiency of the entire transportation service chain. The seamen will have

more opportunities for their work on the ship and land and can take more care of their family thanks to

the ship-shore rotation and expiration system. A tacit understanding will be formed in the ship-shore

cooperation by changing the roles of the seamen. Creativity always originates from professionalism and

insight. In addition to the internal and external professional training, our online learning system enables the

employees to learn professional knowledge required for their work and improve their competence at any

time.

As for the social responsibility, we have provided maritime schools and colleges with cooperative

education programs and practical training opportunities for many years. We are currently implementing

cooperative education programs with 3 maritime colleges in Taiwan and promoting the Intern Pre-selection

system. A fixed number of candidates for the internship are provided to each school and college every

year to train the talents needed for the shipping industry in the future. As for the projects, we enhance the

cooperation with the National Kaohsiung Marine University to train maritime talents on a broader basis.

We also offer special shipping technology classes for the graduates in the hope to train young people who

have not yet graduated from maritime colleges with a series of complete professional knowledge and

techniques and give them an opportunity to work on a ship. We work with the Chang Yung-Fa Foundation

A Message from

the Chairm

an




for public service by sponsoring the activity of fostering a search and rescue dog and donating funds to

the Taiwan Elites´ Search and Rescue Association to support them in their engagement in the rescue

mission. We give required assistance to the victims in addition to the donation. We will continuously

integrate the resources of the Evergreen Group and work with other public service organizations to take

care of disadvantaged minorities and promote various public welfare undertakings. Lecture courses on the

Fair Trade Act, Evergreen Group Loss Prevention symposiums, and other courses beneficial to the public

service are provided on an irregular basis as well.

The global container transportation market is still challenging in the future. The problems it may

encounter include the uncertainty of the global politics and economy, possible emergence of possible

trade protectionism, the temporary imbalance of the shipping capability, geopolitical conflict, and

fluctuation of the oil price. However, we believe that ships will navigate more safely with the development

of the technology and the implementation of the environmental protection convention will ensure a

more environment-friendly shipping industry. The transport in the form of alliances among the shipping

companies will improve the utilization of the transport capacity on the market, and the cargo owner will

expect more of the shipping company to have sound operating capability. With the spirit of Evergreen

- Challenge, Innovation, and Team - in mind, all of our folks will overcome the challenges positively and

innovatively. We will implement the corporate governance and take our corporate social responsibility

conscientiously.

Anchor Chang, Chairman of Evergreen Marine Corp. (Taiwan) Ltd. on dehalf of Evergreen Line

Stakeholders and Issue ManagementNo business can be successful without the support and collaboration of the stakeholders. Hence,

smooth communication and interaction are indispensable in business operations. As the most important shipping company in Taiwan, we know how important the opinions of the stakeholders are. Hence, we try to understand them and their concerns through analysis and give them feedbacks.

I. Identification of stakeholdersA. Analysis of stakeholders

We generalized 9 types of stakeholders from the operating status in 2016 and our experience in the compilation of the annual reports over the past years. With the participation of 22 departments, we jointly identified the stakeholders of each type and the degree of their relationship with the Company based on the following five principles in the AA1000 international standard: Responsibility, Influence, Tension, Diverse perspectives, and Dependency. The supplier was our most important stakeholder in 2016 followed by the competent authority, customer, etc.

Ranking Type of stakeholders Importance to Evergreen Marine

1 Supplier Ensuring the product and service supplied meet the requirements of the Company

2 Competent authority Helping the government agency understand the Company in the compliance with laws through communication with it.

3 Customer The source of our income

4 Employee The members and assets of the Company

5 Shareholder/investor The person who funds the Company

6 Other shipping companies

•The partners operating the shipping lines in an associate form to meet the requirements of the customer

•Ensuring the shipping service provided meet the requirements of the Company

7 MediaReleasing latest news and publicizing the positive image of the Company through smooth communication to help the public know more about the Company

8 Community and society Public safety environment around the Company

9 Social group and non-profit organization

The major partners of the Company in the engagement of public care and service activities

Ranking of the stakeholders by the degree of their relationship with Evergreen Marine in 2016




B. Communication with stakeholdersWe contacted the nine most important stakeholders of our business regularly or irregularly in different

ways to ensure full communication of every issue.

Item Type of stakeholders issue Communication

toolCommunication

frequency

1 Supplier

• Supplier management E-mail, telephone Any time

• Sustainable strategies and their implementation Meeting 1~2 times every

year

• Risk control Supplier evaluation Every year

• Information disclosure and transparency Equipment efficiency

statistics table Every month• Operating performance

2 Competent authority

• Sustainable strategies and their implementation

Telephone, letter Irregular• Information disclosure and transparency

• Compliance

Visit, conference Irregular• Work environment safety and labor health protection

• Ship safety

3 Customer

• Product risk E-mail, telephone Any time

• Service quality and customer satisfaction survey Visit Irregular

• Protection of customer privacy

Company’s website Any time• Shipping management


4 Employee

• Sustainable strategies and their implementation e-Bulletin board Irregular

• Compensation, welfare, and employee care

Top-management instructions at operation meeting

Every month

• Compliance Regular and irregular meeting

Every month, any time

• Operating performance Company’s NOTESOperating System Any time

• Corporate governance and credible business operation Telephone and e-mail Any time

5 Shareholder/ investor


Investor service area on Company's website Any time

• Shipping managementImportant financial and business information in MOPS

As specifiedby thecompetent authority

• Information disclosure and transparency

Organization of informal institutional investor conference or acceptance of the interview request from institutional investors

Irregular

• Operating performance Annual reports inshareholders’ meeting Every year

• Risk control

6Other

shipping companies

• Shipping managementMeeting Regular

(quarterly)• Sustainable strategies and their implementation

• Information disclosure and transparency Telephone/email

MeetingPersonal visit

Irregular• Operating performance

• Risk control

7 Media

• Compliance

Telephone/email Any time

• Ship safety

• Pollution control and environmental protection

• Shipping management

• Operating performance

8Community

andsociety

• Compensation, welfare, and employee care

Personal visit Irregular

• Environmental impact and ecological conservation

• Operating performance


• Pollution control and environmental protection

9Social group

and non-profit organization

• Social care and practical pubic service activity

Telephone/emailManagement meetingPersonal visit

Irregular




II. Analysis of important issuesA. Understanding of sustainability issues

We developed a questionnaire and surveyed the 9 types of stakeholders and internal top management to understand to what extent the stakeholder were concerned about different sustainability issues and how high the impact of these issues was on our business operation. The sustainable development of an enterprise involves a wide range of issues. We generalized 23 sustainability issues from the characteristics of the industry, international tendency, and important facets of sustainability. These issues included corporate governance, economic issue, environmental issue, labor and human rights issue, social issue, product liability issue, etc.

In 2016, we received 182 effect responses to the issues that external stakeholders were concerned about and 16 effect responses to the impact issue that internal management was concerned about. The result of the analysis gave a ranking of the 23 issues on the concern and impact. We made a matrix as shown below with these issues as a basis.

We selected the issues that attracted high attention of the stakeholders and had high impact on our business operation and the issues that had a high or medium degree of concern or impact, where appropriate, as the important issues of 2016. A total of 9 important issues were generalized during the selection. They were shipping management, compliance, ship safety, risk control, sustainable strategies and their implementation, operating performance, work environment safety and labor health protection, pollution control and environmental protection, and protection of customer privacy.

Degree of stakeholders ’ concern

Degree of impact on business operation Low Medium High

Informationdisclosure

and transparency＊

Compensation, welfare, and employee care Product risk

Impact on business

operation due to climate change

◆

Service quality and customer satisfaction survey

Humanrightsand

equality–

High

Medium

Low

Compliance▲

Shipping management

+

■

Social care and

practical pubic service

activity

●

● Supplier management

Talents recruitment and trainin＊

– Public affairs and international participation

×Environmental impact and ecological conservation

×

Risk control ×

▲

▲ Pollution control and environmental protection

■ Corporate governance and credible business operation

Work environment safety andlabor health protection ◆

Sustainable strategies and ◆ their implementation

Operating performance –

– Ship safety

＊ Protection of customer privacy

+ Labor-capital relations ■ Energy/resources usage, energy saving,

and carbon reduction

Item no Category Important issue Meaning to Evergreen Marine

1 Economic issue Shipping management

Facing the fluctuating international trade market, we develop our business by positively seeking for strategic alliances.

2 Corporate governance Compliance

We operate our business honestly and credibly and persist in the policies of anti-corruption, anti-discrimination, and fair competition.

3 Economic issue Ship safetyKeeping the ship and cargo in a safe state is a constant commitment of the Evergreen Marine to customers

4 Corporate governance Risk control

We pay attention to all the risks identified during the business operation and develop complete risk control measures

5 Corporate governance

Sustainable strategies and their

implementation

As one of the top-5 shipping company in the world, we are especially concerned about our social responsibility.

6 Economic issue Operating performance

We are dedicated to improving the operating performance to the expectation of the shareholders and investors

7 Labor and human rights issue

Work environment safety and labor health protection

Since the shipping industry is facing higher risk than other industries, we are more careful about the personal protection measure and labor health status.

8 Environmental issuePollution control

and environmental protection

We know very well how shipping affects the global environment and are dedicated to reduction of the impact.

9 Product liability issue Protection of customer privacy

We rely on the trust and support of the costumers for our business operation and take all required measures to protect the information of the customers.

B. Management of important issuesWe have established complete management policies as well as measurement and management

systems to ensure managing and responding to all the important sustainability issues. We also follow-up annual performance and set goals for the future in the hope to make improvement in all aspects every year.




Importantissue

Importantconsideration

BoundaryManagement policy

Internal External

Shipping management

Shipping management

Evergreen Marine

Customer, other

shipping companies

Ensure stable and premium shipping service of the Evergreen Marine on every shipping line and conduct review of shipping performance

Ship design Evergreen Marine Supplier

Keep business relationship with the shipping companies and ship survey institutions in Taiwan, Korea, and Japan; update and exchange the latest international regulatory requirements, changes of external environment, and application of new technology to the design of new ships.

Compliance

Compliance (environmental and shipping responsibility)

Evergreen Marine

Competent authority

Ensure that the ships of the Evergreen Group meet the international requirements and the regulations of the port state

Compliance (antitrust law, discrimination at workplace,

related to corruption)

Evergreen Marine

Competent authority

• We introduced e-mail audit software to audit the official mailboxes of the Company.

• Provide educational training c o u r s e s t o e n h a n c e t h e employees in their warehouses of the competition law, credible business operat ion, moral behavior, and prevention of bullying and sexual harassment at workplaces.

Measurement and management system

2016 performance highlight Future goal

Conduct regular internal and external license review and respond to stakeholder’s opinions

Plans were made for all the associate shipping lines on time and delivered to the responsible department for implementation. Review of shipping line performance was conducted.

Operate shipping lines on different associate bases to meet the service requirements of the customer and improve our competitiveness in the operation of the shipping lines.

•Make sure the performance indicators in the ship model test and seal trial results comply with the construction specifications and international regulatory requirements.

•The feedbacks from internal ship using departments and ship survey institutions

When viewing the design plans of two new 2800 TEU ships to be manufactured by CSBC and Imabari Shipbuilding, it was conformed that the fuel saving, environmental protection, and easy-to-maintain ideas of the Company have been applied to the new ships

• Cont inuous ly des ign more environment-friendly and low fuel consumptive ship to enhance the competitiveness of our fleets

•The on-site supervision team identifies problems in the shipyard and help to improvement of the construction.

Provide appropriate reports to related departments for further arrangement according to the laws and regulations

There were no hefty fines imposed due to violation of the environmental laws or regulations in 2016.

“Zero” violation of environmental laws or regulations

•Check every month to know how each business department conducts its self-inspection of emails to ensure implementing the policy of the Company on the compliance of the competition law

• Use the i n te rna l meet i ng , orientation training for new employees, announcement on the internal electronic bulletin board, feedback from stakeholders, and complaint mailbox.

•Seven training courses on anti-competition laws were arranged and a total of 256 employees of the Evergreen Group participated in the training.

•Senior executives repeatedly stated the importance of the credible business operation and the enhancement of the supplier management process at the management meeting. They also emphasized business entertainment principles and the importance of the honesty and uprightness.

•The orientation training courses t i t l e d “ C re d i b l e B u s i n e s s Operation, Moral Behavior, and Corporate Social Responsibility” were provided for new employees. The training was provided in 3 phases and a total of 51 new employees participated in the training.

•There was no complaint received against any violation of the moral behavior guidelines in 2016.

• Used the AI mail audit software continuously to audit the emails of the business department and sift out possible emails that violate the laws or regulations.

• Keep good interaction with the competent authority of the competition law and visit it actively to help it understand the practical shipping business.

• Keep using various employee communication tools to enhance the compliance awareness of the employees.




Importantissue



Internal External

Ship safety Ship safetyEvergreen

Marine, employee

Evergreen Marine,

customer

Implemented the stowage of dangerous goods according to the International Maritime Dangerous Goods Code.

Risk control Risk control Evergreen Marine

Shareholder/investor

• Exchange rate risk: Use the forward exchange agreement as a hedge tool

• Interest rate risk: Borrow money with a floating rate

•Price risk: (1) Decentralized investment

portfolio(2) The fuel procurement team

increases the hedge ratio appropriately

•Credit risk: (1) Consider the financial

condition, previous experience and other factors to assess the credit quality of the customer

(2) The Board of Directors established individual risk limits

(3) Only trade with the financial institution that has good credit rating

• Liquidity risk: Supervise the demand forecast of current funds


implementation


implementation

Evergreen Marine

Shareholder/investor, customer

•Deploy marine alliances, contract associate shipping business, and use 350 ships for operation of 41 shipping lines.

•Establish the Corporate Social Responsibility Committee. The President is appointed as the chairperson and the head of each department is appointed as the committee member. The Committee is responsible for the economic, environmental, and social issues and stakeholder engagement.



With the Operation Department as the core, supervise the operation centers in the world to understand their execution status and rate their performance every quarter.

The s towage techn ique was improved to reduce the re-stowage and thus the re-stowage charge by 5%.

Implement alliance operation based on mutual help and cooperation.

The Finance Division implements risk management according to the regulations that the Board of Directors established. It works closely with the operation units to identify, assess, and avoid financial risks.

All the risk management tasks in 2016 were completed in line with the internal execution procedure and reported to the Board of Directors.

Continuously monitor the level of capital a possible risks, acquire market information at any time to minimize potential adverse impact on the financial status of the Company, and ensure all of the operations meet the laws and internal procedures.

• Conduct strict shipping schedule management and assess the operating performance of each line

•The Corporate Social Responsibility Committee reports the CSR implementation status of the Company to the Board of Directors once a year.

• The global operation expenses in 2016 were reduced by about 7% in comparison with 2015. The container supply factor was reduced from 1.64 in 2015 to 1.59 in 2016.

•The stakeholder engagement was conducted through operation of the CSR Committee and with the help of the CSR Report compilation.

•Cont inuous l y improve the competitiveness of the associate shipping lines.

• Continuously implement all the issues involved in the corporate social responsibility.




Importantissue



Internal External

Operating performance

Economic performance

Evergreen Marine

Shareholder/investor

• Conduct investment and capital management in accordance with internal management regulations and processes.

• E n s u r e c o m p l i a n c e w i t h regulatory requirements, compile financial statements with proper express ions , and d isc lose important financial and business information.

Work environment safety and

labor health protection

Occupational health and

safety

Evergreen Marine,

employeeCompetent authority

•Establish safety, health, and work rules

• Sponsor safety and health training courses

• Provide free physical examination; set up dispensaries and medical personnel to give advice on the result of the physical examination.

• Provide periodical fire fighting and evacuation training

• Observe occupational safety laws; develop and implement occupational injury prevention and other protection measures

• Set up security and guard forces working 24 hours a day

Labor practice complaint

system

Evergreen Marine,

employeeCompetent authority

We h a v e e s t a b l i s h e d t h e “ E m p l o y e e C o m p l a i n t Regulations” as a basis for the employees to make complaint about damage to their rights, unfair treatment, or any discipline cases in which other employees are involved. They also provide a remedy for the action of the Company in violation of relevant labor laws or regulations to protect harmonious labor-capital relations and the rights of the employees.



• Important invest or capita l management shall be reported to the Board of Directors for approval and declared according to relevant laws and regulations.

• Ask CPA to issue an audited financial report every quarter in accordance with laws and regulations and declare it to the competent authority.

• The financial report was declared and important information was disclosed every quarter in 2016 according to relevant laws and regulations.

Obse rve re l evan t l aws and regulations most strictly and ensure instant disclosure of financial and related information and its transparency.

• Monitor the implementation of the safety, health, and work rules

• Implement educational training of new and existing employees for their safety and health

• Follow up the result of the physical examination for subordinates

• Provide educational training of subordinates for fire fighting and evacuation.

• All the employees were asked to observe and implement the safety, health, and work rules.

• Educational training of new and existing employees was provided for their safety and health.

•Free physical examination was provided and implemented for subordinates.

•Periodical educational training of subordinates for fire fighting and evacuation was provided and implemented (including hands-on operation).

• The four programs specified in Article 6, Paragraph 2 of the Occupational Safety and Health Act were implemented.

Continuously implement the “prevention of musculoskeletal disorders induced by repetitive operations and related works”, “prevention of ailments induced by exceptional workload”, “prevention of wrongful physical or mental harm caused by the actions of others during the execution of job duties”, and “maternal health protection at the workplace”.

An independent reporting mailbox ([email protected]) is set up for internal and external personnel This mailbox is under the responsibility of a designated person . The ident i t y o f the complainer and the contents of the complaint are kept confidential. The complainer is protected from any inappropriate treatment due to the complaint.

•No labor practice complaint was received, dealt with or reconciled via the official complaint system in 2016.

• There were two labor-management dispute cases in 2016. They were then submitted to the labor affairs bureau and settled under mediation.

Continuously promote friendly workplaces and minimize the occurrence of labor practice complaints




Importantissue



Internal External

Pollution control and

environmental protection

Biodiversity Evergreen Marine

Competent authority,

community, and society

• Observe the BWM Convention•Sail through the area where

whales populated by slowing down the ship or navigating the specified waterway to minimize t he impac t on t he wha l e conservation area.

•Prevent the spread of Asian gypsy moths via the cross-border transportation.

Overall condition (environment)

Evergreen Marine



ShipCreate professional shipping safety and environmental protection management systems

LandEntrust professional vendors to make CO2 test around the office building every six month



• Research on the assessment and additional installation of the ballast water treatment equipment to meet regulatory requirements

• Participate in the environmental programs of relevant agencies and slow down the ship in the specified area

• Obtain licenses/permits required by the port administration, control the effective period of the license/permit using system programs, and establish on-board inspection SOPs

• In addition to the L-type ships that have been equipped with ballast water treatment equipment, we have procured such equipment since 2016

• We participated in the “Vessel Speed Reduct ion Program” sponsored by the National Oceanic and Atmospheric Administration. W e w o n t h e E x c e l l e n t Environmental Protection Award because all of our ships reduced the speed voluntarily to maintain the air quality in the port area and protect the marine ecology.

• We created the system program control to monitor the effective period or the license/permit to avoid ignorance. No violation h a s b e e n i d e n t i f i e d s i n c e implementation of the system program.

• Fol low up and observe the “International Convention for the Control and Management of Ships' Bal last Water and Sediments ” (BWM Convention) of the International Maritime Organization and the Ballast Water Management Discharge Standards of the United States Coast Guard (USCG)

•Take the environmental protection ideas into account at the fleet p l a n n i n g p h a s e t o c re a t e environment-friendly fleets and continuously participate in relevant environmental programs.

• Continuously pay attent ion to relevant information, make announcements to each fleet in t ime, prov ide the latest i n f o r m a t i o n , a n d p ro v i d e educational training for the employees on the ship to improve their prevention knowledge and response measures.

Ship•Observe all the international safety

and environment conventions to avoid pollution of the air, water source, and environment

• We are dedicated to prevention of pollution due to illegal fuel spilling, garbage dumping, or disposal of any hazardous substances. We also commit ourselves to saving energy and reducing carbon for protection of the earth.

Land• The CO2 value around the office

building meets the environmental requirements.

There were no cases of serious environmental pollution or violation of environmental regulations in 2016.

ShipTake provision of safe, premium and effective shipping service as our mission. Ensure our management system and establishment of policies by executing periodical inspection to make sure achievement of the intended goal

LandIncrease ventilation systems to maintain good working environment




Importantissue



Internal External

Pollution control and

environmental protection

Wastewater/sewage and

wasteEvergreen

Marine



Ship•Ensure that the ships of the

Evergreen Group meet the international environmental r e q u i r e m e n t s a n d t h e environmental regulations of the port state.

• Establish garbage management p r o g r a m s t o m e e t t h e requirements of the international convention

LandThe sewage of the high cube container is treated by the sewage treatment plant, and professional vendors are entrusted to have domestic waste burned in the crematory.

Protection of customer

privacyCustomer

privacyEvergreen

MarineCompetent authority, customer

We respect the protection of customer’s pr ivacy, provide employees with the educational training on the protection of personal information to ensure that they understand and observe relevant laws, and protect the privacy of the customer thoroughly.



Ship•Control the waste disposal and

sewage discharge operation to meet the requirements of the international convention

• S t a t i s t i c a l l y r e v i e w t h e implementation effectiveness of the garbage management p r o g r a m e v e r y y e a r, a n d continuously follow up the latest development of the environmental regulations

LandThe sewage treatment is periodically declared to the environmental protection bureau every half year. Professional vendors are entrusted to have domestic waste burned in the crematory once every week.

Ship• The marine oil-water separator

and sewage treatment device that meet the requirements of the International Convention for the Prevention of Pollution from Ships were used for treatment of the sewage. A standard stricter than the international requirements was used to ensure that discharge was conducted in the area 15/25 nautical miles away from the shore. The gray water was stored in the gray water cabinet additionally attached to (or modified on) the ship before the discharge.

•The ash recovered from the incinerator and unloaded ashore in 2016 was increased by 4.14% compared with 2105; the quantity of the plastic garbage in 2016 was reduced by 6.07% compared with 2015; the waste oil per ship was reduced more in 2016 than 2015 by 16.06%.

•Medical waste was unloaded ashore for disposal

LandThe sewage treatment plant kept

running normally and the discharge was well controlled. Wastes were well sorted and managed

ShipC o n t i n u o u s l y o b s e r v e t h e

international requirements for unloading ashore as well as reduction and control of the recover quantity. Continuously reduce the waste and minimize the discharge volume of the waste oil and wastewater. Reduce the consumption volume of the garbage bags.

LandReduce the production of the

sewage and waste to have a cleaner environment.

The measurement is conducted after the personal information protection training is completed.

There were no cases of infringement upon customer’s privacy in 2016.

Employees are informed when any relevant laws or regulations are updated.

Business Status andOperating Strategies

01

I. Company profile

II. Operating strategies

III. Compliance

IV. Risk control


｜｜Business Status

and Operating Strategies

Highlights• The attendance rate of the directors at the BOD meeting was 95% in 2016.

• Evergreen Marine participated in the OCEAN Alliance to expand the operation scale.

• No violation was identified in 2016.

Corresponding to the UN SDGsSDG17

As the top-5 container shipping company in the world, we are dedicated

to develop more shipping routes, direct-call ports, and associate shipping

modes for our business operation. We spare no efforts to pursue

sustainable shipping business while reviewing the supplier and cargo

using a carefully established management system to ensure compliance with all the requirements

during promotion of the international trade.

I. Company profileA.History of the Evergreen Marine

The Evergreen Marine Corp. was founded by Dr. Chang Yung-Fa on September 1, 1968. Starting with a 15-year-old general bulk ship, the founder worked very hard to develop the Company to the scale of the present day. The Company has a service network stretching to the five continents in the world and creates many glorious achievements in the container shipping history.

We started the fleet containerization plan in 1975 and developed the regular container service between the Far East and the east coast of the United States with brand-new fast full container fleets. We are the first shipping company in Taiwan that develops full container service. In 1984, we unprecedentedly developed the regular east-west full container service around the world with our brand-new G-type

ships. We were honorably ranked the No. 1 container shipping company in the World.

We have provided comprehensive container service for all the cargo owners in the world with our brand name Evergreen Line since 2007. We have also promoted strategic cooperation with our partners in the industry via shipping alliances, associate shipping lines and space exchanges to provide cargo owners with a dense shipping service network.

To help the cargo owners all over the world grasp the business opportunity, we build a proprietary e-Commerce website www.ShipmentLink.com and provide ShipmentLink Mobile for them to check the sailing schedule and cargo transportation status at any time using their smartphones We were highly recognized by

the customers for our investment of the resources and efforts in the e-Commerce field, and won the “E-Commerce Excellence Award＂ from Log-Net, an US logistic information institution for three consecutive years including 2017.

We commit ourselves to playing the role of “a guardian of the green earth＂. Dr. Chang Yung-Fa, the founder of the Evergreen Group, said “shipping companies should not wait for new regulations to follow.＂ We should make use of the latest marine technology with positivity and perspective to protect the marine ecology, safety of the port, and happiness of mankind

We used advanced shipbuilding techniques to build a green fleet of next-generation in 2005. The “Double Skin Hull＂, “Built-in Oil Tank＂, and the AMP system of the S-type green ship were perspective designs that anticipated the regulatory requirements at the time. The ship was honorably selected as the Ship of the Year under the Lloyd's List Maritime Asia Awards in the next year. The L-type green ship was put into service in 2012. It has better environmental protection effectiveness thanks to the advanced technology, and can further reduce the GHG emission rate.

The B-type container ship was delivered in Q3 of 2017. With the help of the newly developed Sea Sword Bow (SSB), it can effectively reduce the wave drag during the navigation and save more fuel in comparison with the ship using the bulbous bow.

We participate in may environmental protection programs and use the low speed sailing mode to reduce the GHG emission and improve the air quality around the port. The result of these endeavors was significant over the past years and the GHG emission rate of the fleets was reduced every year. What we have done is beneficial for reducing the risk of hitting the blue whale, humpback whale, whalebone whale, or other huge marine life. This is very helpful for conservation of endangered marine life.

With the operation philosophy of “Creation of Profits, Care for Employees, Contribution to the Society＂ in mind, we will be continuously devoted to providing credible shipping service and promoting the development of the trade business, and do what we can for the world.




B. Scale and performance of the organizationEvergreen Marine organization chart

Note: This organization chart was approved at the regular shareholders´ meeting in 2017.

We are a member of the Ocean Alliance and provide cargo owners with a shipping service network of higher quality by forming alliances with CMA, COSCO, and OOCL, operating associate shipping lines, and executing space exchange.

Our capital in 2016 was NT$35,123,560,000, the consolidated revenue was NT$124,467, 608,000, and the total shipping weight was 4,875,509 TEUs.

Year Item 2014 2015 2016

Operating revenue 144,284,374 133,813,687 124,467,608

Operating cost 136,937,563 132,194,363 127,955,772

Gross profit 7,346,811 1,619,324 (3,488,164)

Pre-tax income (loss) 3,239,358 (4,682,496) (8,808,983)

Income tax expense 1,184,694 (56,801) (243,672)

Net income (loss) 2,055,164 (4,739,297) (8,565,311)

Net Income attributable to shareholders of the parent

company1,176,039 (4,408,079) (6,607,986)

Net Income attributable to non-controlling interest 879,125 (331,218) (1,957,325)

EPS 0.34 (1.26) (1.88)

Note: For more information about the welfare plan and obligation of the Company, please refer to our 2016 financial statement (https://www.evergreen-marine.com/tw/tbf1/jsp/TBF1_FinancialReports.jsp).

(Unit: NT$thousand)

AUDIT COMMITTEE

STOCKHOLDERS' MEETING

PRESIDENT

CHIEF EXECUTIVE VICE PRESIDENT

BOARD OF DIRECTORSCHAIRMAN

COMPENSATION COMMITTEE

COMPETITION COMPLIANCE TEAM.

AUDITING DEPT.

CORPORATE SOCIAL RESPONSIBILITY

COMMITTEE

PUBLIC RELATIONS DEPT.

HUMAN RESOURCES DEPT.

CLINIC DEPT.

FINANCE DIV.

GENERAL AFFAIRS DEPT.

OCCUPATIONAL SAFETY & HEALTH DEPT.

PROJECT DEPT.

INSURANCE & CLAIM DEPT.

MARKETING DIV.

LOGISTICS DIV.

MARITECH DEPT.

SEAMAN DEPT.

OPERATION DEPT.

OPERATION COORDINATION DEPT.

MAINTENANCE DEPT.

SUPPLY DEPT.

SHIPBUILDING DEPT.

KAOHSIUNG TERMINAL DIV.




B. Operating guidelines and strategiesFacing the challenges of the imbalanced supply and demand of the market and the fluctuation of the

freight in 2016, we kept steady and flexible in the execution of our operating strategies and responded to the common pessimistic myth of “new and normal recession＂ of the market in a positive manner. We joined the OCEAN Alliance to lower the operation cost, increase the service port network, and strength the competitiveness.

Our short-term, medium-term, and long-term operating strategies are described below:

Short-term strategies• Increase the service loops from 26 to 40 associate shipping loops.• Increase the operation density of the direct ports from 301 to 411 arrivals and departures.

OCEAN Alliance

II. Operating strategiesA. External challenges

The 2016 global container shipping market experienced the acquisition and merger of five giants in the shipping industry and the bankruptcy of the international top-7 shipping company. Though the largest ever ship-breaking scale and blank sailing adjustment occurred in 2016, the shipping capability of the industry was always higher than the market demand. The imbalanced supply and demand of the space brought about irrational price competition among the shipping companies and the freight dropped increasingly to the lowest level in the history. Every shipping company was facing great operation challenges.

IMF gave a forecast of the 2016 GDP growth rate down to 3.1%. WTO expected a 1.7% growth rate of global commodity trade amount in 2016, indicating that this was the year when the global trade and yield amount grew most slowly ever since the financial crisis in 2009.

As for the supply and demand of the market, the total shipping capacity of the global container fleets in 2016 increased by 300,000

TEUs or grew by 1.5% compared with 2015. Facing the circumstance where the supply exceeded the demand and, thus, the freight dropped increasingly, shipping companies strove to survive by adjusting the sailing schedule and reducing the capacity. The idle container shipping capacity increased up to 142,000 TEUs at the end of 2016. According to Alphaliner´s statistics, the average profitability of the global leading shipping companies was -5.2% in Q1, -9.2% in Q2, and -7.8% in Q3. The global top-7 Korean shipping company applied to the court for bankruptcy protection at the end of August. The market was changed substantially because the cargo owners had higher awareness of risk and changed their criteria in the selection of shipping service providers. However, rise of the freight came too late to improve the overall performance in the third quarter. Fortunately, the indicators of the shipping companies including the utilization of the shipping space and average freight income were generally recovered in the fourth quarter.

Increase the shipping loopsfrom 26 to 40.

Increase the operation density ofthe direct-call ports from 301

to 411 arrivals and departures.




Optimize fleets continuously

and improve the competitiveness.

Participate in e-Commerce

platforms and Initiate industry innovation

Adjust the organizational structure

and train talents

Observe environmental

regulations and ensure sustainable operation

189

250

1M

114 316

Vessels + 36 New Vessels

Service Ports + Wharf Deployment

TEUs Capacity + 324,000 New Capacity

+ Service BasesCountries

Medium-term strategies• Build 36 new ships efficiently to improve the competitiveness.

• Deploy important strategic wharfs.

• Create the economic scale by adding new shipping capacity.

• Complete the service network.

Long-term strategies• Optimize fleets continuously and improve the competitiveness.

• Participate in e-Commerce platforms and Initiate industry innovation

• Adjust the organizational structure and train talents

• Observe environmental regulations and ensure sustainable operation

III. ComplianceWe commit ourselves to establishing anti-bribery/anti-corruption, anti discrimination, environmental

protection, and fair competition policies. As the top-5 shipping company in the world, we are especially concerned about our social responsibility and ensure smooth communication with all the involved stakeholders.

A. System managementThe internal regulations governing the implementation of the anti-bribery/anti-corruption, anti

discrimination, and credible business operation are described below:

1. Corporate Governance Rules

2. Important Internal Information Processing Procedure

3. Code of Ethical Management

4. Code of Ethical Conduct

Applicability BOD members

Description

1. Establish an effective corporation governance system2. Protect shareholder’s equity3. Enhance the BOD function4. Respect the stakeholder’s rights5. Improve the transparency of information

Applicability Directors, managers and employees; other persons who know the important internal information of the Company due to their status, occupation, or control relationship.

DescriptionEstablish a good system for precessing and disclosure of important internal information to avoid inappropriate disclosure of the information and ensure the consistency and correctness of the information that the Company announces outwards.

Applicability Directors, managers, employees, trustees, and the person who have the substantial control capability

Description1. Observe relevant rules or other laws and regulations governing business practices2. Conduct business activities fairly and transparently3. Set up an independent reporting mailbox for internal and external personnel.

Applicability Directors, managers, and employees

Description1. Observe moralities and persist in the principle of credibility2. Treat customers, competitors, and employees fairly3. Enhance moral awareness




B. Implementation of laws and regulationsWe have established the reporting and summarizing process for each violation case. For example,

the oil pollution case must be reported internally and the Maritech Department must take further handling actions in addition to dealing with the pollution on the ship right away. There were no hefty fines imposed due to violation of the environmental laws or regulations, or any cases in violation of the credible business operation or involved in discrimination, forced or compulsory labor, or infringement upon the rights of the indigenous people in 2016.

C. Antitrust issueTo help employees understand the issues related to the competition law, the Competition

Compliance Team arranged 7 training courses on antitrust in 2016. The course was classified into 3 categories:

A)Concept of the competition law, violation judgment criteria, and compliance rules

B) EU's commitments and compliance rules

C) Rules governing participation in the meeting/activity of another company in the same tradeA total of 256 employees participated in the training. The competition law checklists have been made

one after another for the agents in different countries. It contains the market information, the do's and don'ts in quotation, etc.

Case Fact in contention Start date Current status

The European Commission investigated

the price raising case of the Evergreen

Marine

The European Commission made a raid on the Evergreen Marine branch in Britain on May 17, 2011 and focused on the practice in which different shipping companies issued at a similar time point an announcement of general rate increase to a similar amount. The European Commission found possible involvement of this act in the price signal between the shipping company and, thus a violation of the “concerted action＂ requirement in the competition law.

May 2011

The European Commission confirmed that the Evergreen Marine did not violate the competition law. However, to eliminate the misgivings of the European Commission, Evergreen Marine promised to change the process of the quotation to the customer. The European Commission accepted the first implementation report.

The Russian anti-monopoly

agency investigated

the price raising case of the Evergreen

Marine

The Russian antitrust agency came to the Evergreen Marine branch in Russia on February 15, 2013, to investigate whether the announcement of GRI to a similar amount issued by the Evergreen Marine and other shipping companies at a similar time point was a “concerted action＂ of the carriers and, thus, violated the antitrust law of Russia.

February 2013

The Eve rg reen Mar ine c la imed that i t d id not ac t i n v io la t ion o f the competition law and signed a reconciliation agreement with the competent authority. The court approved the agreement.

IV. Risk controlA. Operating risk management

The risks that we control during the business operation include the strategic and operating risks, market risk, legal risk, and financial risk. The responsible department reviews the risk concerned on a regular basks and the Auditing Department is responsible for audit of the departments to make sure their audit management execution status.

B.Emergency response systemWe adopt a fleet Safety and Environment (SE) Management System which has passed the certification

of the American Bureau of Shipping (ABS). We are dedicated to providing a safe and good working environment, taking full actions to prevent any hazard to the work, protecting the employees for their safety on the ship, preventing ocean pollution, executing risk management regarding operation of the ship, and anticipating the occurrence of disasters. We make the management manual to specify important operation items on the ship and provide a standard checklist to ensure standardized and consistent operation among the fleets.

To protect employees from acting in violation of the competition law during execution of the daily business, the Competition Compliance Team introduced the email audit software to audit the official mailbox. The personnel responsible for the audit check and judge the emails that are sifted out as high-risk mails. The department concerned will take further action once an outbound mail is found violating the competition law.

The antitrust litigations of the Evergreen Marine in recent years are summarized in the following table:




Evergreen Marine Emergency Response Instructions

Annual program of regular education, training, and exercise on the ship

Exercise frequency Type of disaster

Once every monthAbandonment of ship

Fire

Once every two months Enter into enclosed space and search and rescue

Once every quarter Steering engine failure

Once every year

Towed by a tugboat

Collision, reporting and warning

Ship flooding/heeling/foundering

Pipe leakage/leakage due to hull damage

Fuel spillage/fuel compartment overflow

Ship grounds/strikes reefs

Sailor falling into water/salvage

Main engine failure (malfunction)

Generator failure

On-board emergency medical treatment

Hazardous substance training

Maritech Department and Maintenance Department headsCollect required records and information after receiving the report from

the captain.

All the emergency response team membersReview the captain’s report, conduct investigation, and develop

emergency response measures

Designated person (DP) Judge and determine the type of the accident

Designated person (DP) Determine emergence response measures and report to the captain

Maritech DepartmenAnalyze the report

Take follow-up actions for further maintenance and/or correction items.

Designated person (DP) Determine emergency response team members and lead the operation

All the emergency response team membersAct according to the Emergency Response Communication Procedure

START

END

Identification of accidents

Organization and responsibility

Emergence response measures

Communication

We establish a complete training program for the fleet to deal with emergent accidents on the ship and improve the emergency response capability of the sailor. The Company and fleet conduct a ship-shore interactive simulation exercise on a regular basis to ensure that the Company can give effective support right after occurrence of the disaster and the personnel on the ship and shore can maintain smooth communication. Another purpose of the exercise is to protect the life of the sailors and the safety of the cargo, reduce the damage to the ship, and minimize the impact on the marine environment.

When any emergency accident or disaster occurs, the captain reports to our ship management department and the competence authority of maritime administration according to the reporting procedure of the management system, and takes appropriate emergency response procedures specified in the management system. The designate person of the Company organizes a cross-department emergency response team to provide the ship with the best emergency guidance and other required supports.

I. Supplier management

II. Associate partner

III. Customer management

IV. Cargo safety

Partnership and Customer Management

02


｜｜Partnership and

Customer Management

The important suppliers cooperating with us in 2016 did not change a lot in comparison with the previous year. They are mainly the shipbuilding company, terminal machinery and equipment manufacturer, container manufacture and leading company, freezer manufacturer, railway company, etc.

Highlights• Issue CSR questionnaires to suppliers and have a return rate of 100%

• The overall customer satisfaction with our service are scored 4.74

• Help the Institute of Transportation, MOTC, develop dangerous cargo management regulations

I. Supplier managementA.Evergreen Marine's value chainHarmonious cooperation of the upstream, midstream, and downstream suppliers is required for provision of complete shipping service. Our suppliers are organized as follows:

Shipbuilding companyTerminal machinery and

equipment manufacturersContainer

manufacturerFreezer

manufacturerContainer leasing company

Marine fuel oil supplier

Associate shipping company

DockContainer yard

and container repair vendor

Insurance company

Fluvial bargeBarge

Railway companyTrailer company

Upstream Midstream Downstream

Purchase category Purchase information

Purchase region

America China Asia(Incl. Taiwan)

Europe/Mediterranean/

Africa

Trailer, Feeder, train transport service

Number of suppliers 584 187 235 313

Local purchase amount (%) 100% 100% 100% 100%

Empty container yard (storage and repair)

Number of suppliers 305 210 3377 390

Local purchase amount (%) 100% 100% 100% 100%

Container body, freezer manufacture, container

leasing

Number of suppliers 19 2

Local purchase amount (%) 100% 100%

Ship sparesNumber of suppliers 34 95 209 128

Local purchase amount (%) 7.30% 20.39% 44.85% 27.47%

Marine fuel and storeNumber of suppliers 14 20 63 20

Local purchase amount (%) 26% 5% 49.34% 19.65%

ShipNumber of suppliers 2

Local purchase amount (%) 100%

Terminal machineryNumber of suppliers 1


General affair and office supplies

Number of suppliers 130


B. Supplier evaluationWe have established the “Supplier Transaction Management Instructions＂, “Business Partner

Management Instructions＂, and other internal regulations for the procurement department to follow. A procurement evaluation review meeting is convened if necessary. The procurement department chooses qualified suppliers according to the given selection procedure and conduct the evaluation at least once every year. New suppliers must meet all the relevant international and foreign regulations as well as the rating requirements to ensure that the quality of the suppliers complies with the requirements of the



Customer Management

Company. Otherwise, they shall not be registered in the supplier list of the Company. More than 1,000 suppliers maintained good cooperation relationship with the Company in 2016. We executed the following evaluation items:

To understand the implementation status of the supplier's corporate social responsibility, we issued questionnaires to our upstream, midstream, and downstream suppliers (such as shipbuilding companies, terminal machinery and equipment manufacturers, container manufacturers/leasers, freezer manufacturers, and railway companies) to survey their implementation

in the aspects of environment, labor practice, human rights, and CSR. 158 questionnaires were effective in 2016. (All of them were returned.) The results of the survey in these environment, labor practice, human rights, and social impact of the suppliers were used as one of the references for selection of new suppliers and elimination of existing suppliers.

Supplier evaluation

Quality

Service

Testing

PriceEnvironmental assessment

Labor practice and human rights

assessment

Supplier's social impact assessment

Environmental policy

Yes No

Environmental management

system

Environmental accidents

Implementation of anti-bribery, anti-corruption, fair competition, and ethical

management

Labor practice/human rights

policy

Overtime pay/paid holiday

No child labor Trade union, collective

bargaining

Public and labor accidence

insurance



Customer Management

C. Selection of suppliersThe record about whether the supplier affects the environment or society is used as a reference for

the selection.

For example, ship equipment for our fleets is purchased with the environmental protection as the first priority such as use of the pollutant-free bottom anti-fouling paint, asbestos-free gaskets, stern lubricant containing environment-friendly material, exhaust and desulphuization equipment, gray water discharge control system, etc. The supplier providing repair service is requested to carry out the construction in accordance with the Labor Safety Act and other relevant laws and regulations. Compliance is used as a reference for assessment during the annual supplier evaluation.

II. Associate partnerA. Overview of the associate operation

As more larger vessels were built and environmental laws required more than ever, more shipping companies are running their business in alliances to effectively reduct the operating cost, increase the sailing frequency, and improve the service ports network by jointly putting ships into service and exchanging or selling shipping space.

We organized the CKYHE Alliance with 5 shipping companies including COSCO, Kawasaki Kisen, and YangMing Marine Transport in 2014 to jointly run the east-west major transoceanic shipping routes. In 2017, we will further organize the OCEAN Alliance with COSCO, CMA, and OOCL in the hope to optimize the value of the associate operation with a strict contractual organization and deepened cooperation mode. Provision of complete and premium service

for customers is always the first priority in the operation of our shipping service. The sales department visits customers to canvass their cargo, and the customer service department helps customers solve their problems in the exportation and importation matters. The customer service department arranges irregular customer visit to understand their requirements and provide more professional and customized service. To maintain the premium customer service level, we enhance the professional practice and etiquette of the customer service personnel by implementing the “Customer Serv ice Management Project＂ and the management cycle mode of Plan → Do → Check → Action. We establish relevant operation indicators and standards from the start of the training to the online

Increase of the voyages and direct-call ports, improvement of the shipping range and quality, reduction of the shipping time, and decrease of the cost

Increase of the shipping route coverage and creation of a global service network to provide customers with “on-stop service” and improve the operating efficiency

Improve the utilization of idle ships and equipment, increase of the loading factor, and enhancement of the cargo-generation capacity

Improvement the coordination with the concerned parties and port administration to avoid repeated port of call, improve complementary effect, reduce shipping hours, and increase sailings

B. Cooperation mode and outlookA number of task forces will be formed according to the functionality and responsibility of each

department of the Company at the initial stage of the OCEAN Alliance. The task force is responsible for communication with the corresponding units of other alliance members (including regular/irregular meetings and communication by phone/mail) with respect to the assigned work such as adjustment of the shipping route/point, arrangement of the fleet/sailing, integration of the information and electronic data system, etc.

Besides，the OCEAN Alliance will found the Operations Coordination Center (OCC) in Hong Kong. All the alliance members will send their representatives to OCC for coordination of the shipping line operation matters.

Name CKYHE OCEAN AllianceOrganizational

difference Associate platform Strict organization subject to a contract for at least 5 years

Financial status Different financial status of platform members

Sound and robust financial status of members

Shipping management Lack of sailing schedule management center and difficult communication

Centralized arrangement via a sailing schedule management center

practical operation, check the operation quality in different aspects, and improve the operation continually. Review of the self-inspection is conducted quarterly. Where any item is found not achieving the preset goal, corrective actions are taken for the audited unit and overall internal education training must be conducted to avoid recurrence of the same mistake. 136 employees were subject to the spot check of the self-inspection in 2016. All the audited personnel created an average score of 90 points (included) and reached the preset goal value of more than 4 points, wherein the average level of the professional practice was 4.91 and the average level of the etiquette level was 4.76. The person whose spot check score was too low will be first reviewed in the next spot check to ensure that we can maintain the premium customer service level.

Advantages of the associate organization

III. Customer managementA. Maintenance of customer relations



Customer Management

Maintenance ofcustomer relations

a case of considerationfor customers

1

2

B. Improvement of customer serviceWe provide human-friendly cordial service. We don´t use

telephony and have designated personnel answer every call personally. To provide customers with the “one stop service＂, the person answering the call understands the special requirements of the customer in detail and give it correct answer and service. If the matters concerned are not in the scope of the person answering the call, he/she will help the customer forward the call to the responsible unit and pass on the requirements of the customer. With this system, the customer can receive a satisfactory answer to his/her problem only with one call. We also develop a convenient e-Commerce platform (website: ShipmentLink) to provide service 24 hours a day and 7 days a week. The customer only needs to use this website at any time to check the information that it needs. The “Totally Integrated Service＂ provides customer members with exclusive service. They can book space, make B/L, submit Verified Gross Mass (VGM), and check the bill of lading online, or set the format and content they need and have the system to make the customized analysis report for them. The system can also provide customer members with the cargo tracking information. The number of members in the Taiwan area has reached up to more than 4,000.

We cooperated with the International Maritime Organization (IMO) in the modification of the International Convention for the Safety of Life at Sea (SOLAS). A VGM declaration portal was built on our website and mobile phone app respectively in 2016. It is very convenient for the customer to declare and check VGM information in different ways.

C. Understanding of customer satisfactionWe firmly believe that the opinion of the customer is an important element for ensuring the service

quality. An external questionnaire survey is conducted regularly to understand the requirements of the customer and the items to be improved with reference of the feedback of the customer. By doing so, we develop the service distinguishing from the competitors and win the trust of the customer and their long-term support. We conducted questionnaire survey of customer satisfaction every quarter in 2016 by visiting customers or contacting them by e-mail or fax. A total of 1,082 effective questionnaires were recovered. The average score of customer satisfaction with the overall service was 4.74 and higher than our internal standard score of 4.5. This indicated that our service is satisfactory to the customer.

The “overall space-booking performance＂ item was added to the 2016 questionnaire. The “service attitude＂ was highest recognized following by the “in-time delivery of cargo arrival notice＂, “communication approach between the space-booking person and you＂, and “correctness of the documentation and information＂ items. The “easy-to-search of the website＂ scored lowest. After understanding the opinion of the customer, we knew that the ShipmentLink was least recognized because the customer could not find individual fees from the web page. However, this resulted from the fact that we did not disclose the freight-related information on the website any more as required by the EU, and the customer service personnel only provided customer-related information. As for the additional “overall space-booking performance＂ item on the questionnaire, customers were asked to compare the current overall space-booking performance with the previous one. The resultant score of 4.64 points indicated that customers found a “better than ever＂ performance and gave a positive rating.

Questionnaire survey of customer satisfaction from 2014 ~ 2016

2014 2015 2016

4.8

4.7

4.6

4.5

To provide better service for the orchid customer, the reefer & special container department helped Dr. Huang Zhao-Jia from the Crop Science Division of Taiwan Agricultural Research Institute, Council of Agriculture, Executive Yuan, use our reefer to transport two batches of orchids from Taida Horticultural Co, Ltd. to the New York of the United States of America for temperature and humidity tests in 2016. The result of the test was excellent and showed a reduced damage rate of orchids to 3.64%, much lower than the previous 10%. This experience was spread to the orchid farmers and we created a higher business benefits for the customer.

We helped deal with the awkward circumstance in which containers were left in the intermediate ports and could not be transported continuously due to the bankruptcy of Hanjin Shipping. The containers were switched and moved to our ships and transported to the destinations.

Professional ability

Total average Correctness of documentation and information

Counter B/L issuing speed

In-time delivery of cargo arrival notice

Correctness of freight information

Easy-to-search of the website

Overall space-booking performance

Communication approachbetween the space-booking

person and you

Service attitude

Bill of lading check time

Space booking confirmation speed



Customer Management

IV. Cargo safetyA. Freight transport regulations

We always keep the safety of the employee, cargo, and ship as well as the zero accident in mind, and load the containers that our customers deliver to us according to the International Convention for the Safety of Life at Sea (SOLAS) and the International Convention for the Prevention of Pollution From Ships (MARPOL). We execute regular educational training of personnel and reduce the accidents by implementing risk management to ensure achieving the goal of perfectly safe transportation.

We establish three loading instructions to ensure the intensity of the management.

We publish the “Evergreen Line dangerous goods policy and forbidden list＂ on the website and provide customers with free labeling of dangerous cargo. Being an value-added service, it can avoid incorrectness or loss of the labeling and, thus, being fined by the port administration during the transport, and improve the image of the Evergreen Marine on the market.

As a response to joining the OCEAN Alliance, we adjusted the items of the dangerous cargo to be canvassed in 2016 subject to the safe transport and management principles. Though the items became similar to other three shipping companies after the adjustment, we still keep the idea of safe transport and our unique considerations. Our dangerous cargo team is comprised of professional personnel from the shipping and chemical fields. They can contain concealed and incorrectly reported dangerous cargo from running on the OA service network with the help of our integrated system to achieve the goals of common competitive cooperation, safe transport, and zero accidents.

We have established a complete dangerous cargo management practice. However, the dangerous cargo management regulations in

Taiwan has not been amended for many years nor upgraded to the level of the international IMDG Code, and the sources of the mother law are spread among The Law of Ships and other port management regulation. This brings about difficulty to the carrier, shipper, port administration company, and dock operating company. The terrible explosion occurred at the dangerous cargo storage area in Tianjin, China, in August 2016 had great effect and brought about a global shock. In consideration of these occurrences, the Institute of Transportation of the Ministry of Transport and Communications proceeded to develop the dangerous cargo management regulations covering all the land, air, and sea transportation activities. As the largest shipping company in Taiwan, we were invited to participate the draw-up of the regulations. We provided our practical experience at the meetings in the hope to develop complete, flawless, and detailed regulations, bring the shipping of dangerous cargo to the right track, and improve the shipping safety.

CargoTransport Procedure

Stowage Operation Instructions

Dangerous Cargo Control

Instructions

Manage seven processes of receiving, stowage, loading,

transport, unloading, delivery, and schedule

management respectively

Assignment of responsibilities, collection of loading information before

stowage, establishment of basic stowage (space distribution) principles,

and stowage cautions as the work rules for stowage

personnel

Ensure full compliance with IMDG Code and other

international conventions and local regulations of the

port state during transport of dangerous cargo to protect the safety of life at sea and prevent marine pollution

B. Management of dangerous cargo

Environmental protection and Sustainable Shipping

03

I. Energy management

II. Emission management

III. Waste and water resource management

IV. Sustainable shipping development


｜｜Environmental protectionand Sustainable Shipping

SDG7Our fleets are equipped with the Load Stability Calculation System and Whether Navigation Information (WNI) System approved by the classification society to optimize the sailing speed of the ship and monitor the fuel consumption. This is what we do for the global mission of energy efficiency improvement.

SDG13The long-term operation of the shipping business has a close relation with the global ecological environment. We organize green container fleets, improve the green awareness among the employees, and dedicate ourselves to realizing a wonderful life for all of humanity. We acquire certificates from international environmental assessment institutions to demonstrate our forward-looking operating philosophy.

SDG14We have made garbage management plan for the solid garbage or liquid waste produced during the transport. Disposal of the waste is planned appropriately and related information is completed recorded in the garbage record book. We strictly observe international and local environmental protection regulations when dealing with the waste and garbage to fulfill our obligations as a user of marine resources.

I. Energy managementWe observe all international local environmental protection conventions and we devote ourselves to

preventing pollution, saving energy and reducing carbon, and protecting the earth. We have set up strict standards and operation procedures for every environmental protection and pollution prevention matter on the ship when it is sailing on the sea. We make use of the latest marine technology more positively and perspectively to protect the marine ecology, safety of the port, and happiness of humankind.

To thoroughly control the energy that we use for the shipping and the maximal reduction benefits, we execute comprehensive management of the ships on the sea, Kaohsiung Terminal Division, and office building to understand and review the use of energy in different natures and implementation of different energy reduction plans.

Marine fuel consumption

A. Use of energy and GHG Ships on the sea

We reduce the energy consumption, minimize the pollution and GHG emission via various management and operation measures and design of the ships. Our efforts in the consumption of marine fuel, GHG emission, and continuous energy saving and carbon reduction were demonstrated in the reduction of the fuel consumption every year. The CO2 emission of the fleets also reduced continuously. The emission rate in 2016 was less than 2007 by 40.27% (41.794g/TEU-KM).

CO2 Annual Emissiong/TEU-KM

Fleet CO2 emission6564.56463.56362.56261.56160.5

5,532,687

5,776,194 5,822,14764.4

64.034

61.996

2014 2015 2016

5,900,000

5,800,000

5,700,000

5,600,000

5,500,000

5,400,000

5,300,000

Fleet CO2 emission (Tons of CO2e)

Fleet CO2 emission rate (g/TEU-KM)

1918.818.618.418.21817.817.6

1,746,194 1,739,380

29,640 112,215 111,677

1,754,691

18.792 18.674

18.06

2014 2015 2016

2,000,000

1,500,000

1,000,000

500,000

0

Marine heavy fuel oil consumption (ton)

Marine diesel oil consumption (ton)

Marine fuel oil consumption rate (g/TEU-KM)

Note: Refer to MEPC Circ.471 29 July 2005 for more information about the fuel oil CO2 emission factor.Note: The CO2 emission amount is acquired by calculating the CO2 [CO2 g/TEU-KM] produced by a 20＂

container per kilometer based on the total annual consumption of the fuel oil (the diesel oil and heavy fuel oil for the main and auxiliary engines on the ship).

Highlights• The first shipping company in the world helping with collection of the maritime boundary

measurement data.• Establishment of the policy to discharge wastewater/sewage 15/25 nautical miles away from the

shore to protect the ecology at the coast and port.

Corresponding to the UN SDGs



Operation on landKaohsiung Terminal Division

The source of the energy consumption at Kaohsiung Terminal Division is mainly the hosting machine. The types of the energy used are diesel, electricity, and gasoline for the company vehicles.

Though the business volume of the Kaohsiung Terminal Division increased over the past three years and reached the peak in 2016, the energy intensity is decreasing thanks to the effective control and management. 4 ARMGCs (Automatic Rail Mounted Gantry Cranes) were put into service in mid-February 2017 to share the operation in the storage area. It shares 12% of the work initially and is expected to share more gradually in the future. ARMGC is controlled by the computer and can select the optimal route to reduce consumption of the energy and emission of the air pollutant, minimize the human error, and improve the energy efficiency.

Office buildingThe energy used for the office building of the Evergreen Marine in Nankan, Taoyuan City, is mainly the

electrify for the office and the fuel oil for the company vehicles. The effect of the replacement with energy-saving lighting facilities and air conditioners as well as turn-off of unnecessary lighting devices at noon and use of environment-friendly vehicles are demonstrated in the decreasing degree of power consumption and energy intensity.

Kaohsiung Terminal Division fuel oil consumption

Kaohsiung Terminal Division electricity consumption

1.45

1.40

1.35

1.30

1.25

1.20

1.15

4

3.95

3.9

3.85

3.8

3.75

3.7

3.65

1,571,397

35,638,014

1,286,335

39,013,227

32,317 25,262 26,787

1,042,829

41,446,863

1.40

3.97

1.30

3.77

1.25

3.85

2014

2014 2015 2016

2015 2016

1,800,000

1,600,000

1,400,000

1,200,000

1,000,000

800,000

600,000

400,000

200,000

0

45,000,000

40,000,000

35,000,000

30,000,000

25,000,000

20,000,000

15,000,000

10,000,000

5,000,000

0

Diesel oil receiving amount (liter)

Power consumption degrees for other purposes

Gasoline consumption (liter)

Power consumption degrees for hosting machine

Fuel oil intensity (liter/work load)

Hosting machine power use intensity (degree/work load)

Kaohsiung Terminal Division GHG emission

3.803.703.603.503.403.303.203.10

4,184.05

20,598.9818,567.41

3,422.27 2,789.02

21,883.94

1.25

2014

20142014

20152015

20162016

2015 2016

25,000

20,000

15,000

10,000

5,000

0

Direct GHG emission (tons of CO2e)

Total degrees of power consumption

Indirect GHG emission (tons of CO2e)

Energy Use Intensity(EUI) (degree/M2)GHG emission intensity (tons of CO2e/M2)

Indirect GHG emission (tons of CO2e)

GHG emission intensity (tons of CO2e/work load)

3.70

3.30

3.47

Office buildingelectricity consumption

Office buildingGHG emission

7,500,000

7,400,000

7,300,000

7,200,000

7,100,000

7,000,000

6,900,000

6,800,000

6,700,000

6,600,000

6,500,000

3,900

3,850

3,800

3,750

3,700

3,650

3,600

3,550

3,500

3,450

265

260

255

250

245

240

235

230

0.138

0.136

0.134

0.132

0.13

0.128

0.126

0.124

7,361,200

3,835

262.550.136

242.72 0.128

245.17 0.129

6,873,800 3,629

6,805,000

3,593



Company vehicle gasoline consumption40

30

20

10

0

12,353

9,488 9,656

28.61 21.97 21.92

2014 2015 2016

15,000

10,000

5,000

0

Gasoline consumption (liter)

Direct GHG emission (tons of CO2e)

B. Energy saving and carbon reduction measuresShips on the sea

We fulfill our commitments to the environmental protection and improve the energy efficiency by tracking and analyzing the energy consumption status of the ship. Effective operation of the ship is another commitment of us in order to achieve the energy saving and carbon reduction goal.

EU provides a 3-step development strategy for the shipping industry to implement environmental protection and emission reduction. The first step is to bring up the MRV [Monitoring, Reporting, and Verification] system. All the ships anchoring at or passing by any EU ports must be subject to the carbon emission monitoring from January 1, 2018. The second step is to set a specific emission reduction goal for the shipping industry and the third step is to take further medium-term and long-term measures, such as implementation of compulsory measures to the market.

Bring up the effective

MRV system

Set specifi

c emissi

on

reduction goal

Planning compulsory

measures1 2 3

We take two measures for the emission reduction issue. One of them is to keep contact with the register of shipping. It has established an implementation guide to meet the EU monitoring and reporting requirements and audits. This guide provides a credible basis for the sequential verification and allows timely execution of the audit and verification activities. The second one is training to understand the requirements of the EU MRV, establish implementation guidelines and monitoring plans, execute such plans, and make reports. Assessment is conducted to understand the monitoring of existing data, whether the statistic method meets the requirements for full establishment of relevant measures, installation of

a data retrieval system needed implementation of the laws and regulations, and construction of a data retrieval platform. These measures are beneficial for preparing the implementation of MRV regulations on one hand, and precisely recording our operating data via electronized operation on the other hand to execute centralized management, analyze the performance of the ship, and further improve the measures.

We take the following actions to reduce the CO2 emission rate:

(1) Slow down the speed of the ship and sail at a low speed(2) Monitor the consumption of the fuel oil and operation of the main engine all the time to

ensure the propelling performance of the main engine(3) Use the weather navigation to provide the fleet with real-time weather information and

the best sailing route to optimize the fuel efficiency(4) Improve the cargo loading and unloading efficiency and shorten the time for the ship to

stay at the port(5) Plan the loading capacity of the ship appropriately to ensure the best economic benefits(6) Use special anti-pollution paint for the body of the ship(7) Replace old ships with new ones

Use the weather navigation to optimize the fuel efficiency

Regular review management

meetingEnhanced fleet service analysis

Real-time fuel efficiency monitoring

Continuously optimized prevention

measures

Evergreen Marine

Evergreen Marine (U.K.)

Evergreen Marine (Singapore)

Weather navigation sailings 806 192 312

Fuel saved (ton) 2,652 1,215 1,871

Reduced CO2 emission equivalent (ton) 8258 3784 5826

Note: Refer to MEPC Circ.471 29 July 2005 for more information about the fuel oil CO2 emission factor.

We work with the WNI company continuously to monitor the fuel consumption of the fleets, optimize the fuel efficiency, reduce the carbon emission, and do our best to protect the environment.

T h e W N I p ro v i d e d Evergreen fleets with weather navigation for 1,310 sailings in 2016, and a total of 5,738 tons of fuel was saved. The details are described below:



Assistance in the PGGM (Pacific Greenhouse Gas Measurement) ProjectThe Taiwan government launched the PGGM (Pacific Greenhouse Gas Measurement) Project in

2008 and built the largest air and marine GHG measurement platform in the world. We have participated in this project since 2009 and collected the atmospheric data in the marine boundary layer under100 meters. These data will be used in the research on global warming and climate change, and are helpful to understand the change process of the CO2 concentration in the atmosphere.

With the assistance in this project, we become the first shipping company in the world helping with collection of the marine boundary measurement data.


The 5 ship side Gantry Cranes at the Kaohsiung container terminal have the Tandem function and every crane can hoist two 40＂ containers at a time to reduce the times of movements between the sea and land sides, improve the operation efficiency, and reduce the consumption of energy. The E-RTG mode (electricity rather than diesel engine) is used in the back area of the terminal to reduce the consumption of diesel.

Since the E-RTG power supply system has been used for ten year, we have started replacing and repairing the damaged facilities to reduce the carbon emission continuously and maintain the electricity consumption of the hoisting machine to the given ratio.

Office buildingWe have replaced the lighting facilities of the Evergreen Marine Building in Nankan to LED and

inductive devices for many years. Company vehicles were replaced with new ones to improve the energy efficiency. Unnecessary lighting devices were turned off at noon. Two air conditioners that have been used for 23 years were replaced with new ones at the end of March 2016. The new air conditioners ran very well and had good energy saving effect. Electricity and water were saved by 68,800 and 1,116 degrees, respectively, in comparison with 2015, and 36.4 tons of CO2e emission was reduced. (Calculated based on the electricity emission factor [0.529 kg CO2e/degree] announced by the Bureau of Energy, Ministry of Economic Affairs, in 2016)

II. Emission managementAir pollution control

A. Nitrogen oxide emissionTo control the NOx emission, the Supplementary Provision VI of the International Convention for the

Prevention of Pollution From Ships (MARPOL) specifies the nitrogen oxide emission standard for marine diesels subject to Tier I, Tier II, and Tier III phases.

We implement the nitrogen oxide emission control in the ship building, equipment replacement and sailing phases to ensure full execution of the emission control.

Building of ships• New ships are installed with the main engine and generator that meet the requirements for the

nitrides emission rate at different phases (Tier I, Tier II, and Tier III).

Replacement of equipment• All the calibration, replacement with spare parts, or refitting that may affect the nitrides emission

rate are carried out according to the technique file of the manufacturer. The parameters of the main engine (or generator) are recorded in the Main Engine (or Generator) Record Book for the administration of the port state to check, if needed, to ensure compliance with the emission standard specified in the international convention.

• Only the spares that meet the specification number referred to in the “technique file” of the manufacturer shall be purchased or used for replacement to avoid use of inappropriate spares and, thus, excessive emission beyond the standard. The spare number used for replacement and the date of the replacement shall be recorded in the “Main Engine (or Generator) Record Book” for tracking purpose.



NOx Annual Emission

SOx Annual Emission

g/TEU-KM

g/TEU-KM

B. Sulfur oxide emissionWe strictly observe the intragenerational regulations and reduce the sulfur oxide emission accordingly.

We use the marine fuel oil that meets relevant regulations and confirm the concentration of the sulfur according to the Bunker Delivery Note (BDN) that the vendor provides every time when it supplies the fuel oil.

The Evergreen fleets had a decreasing SOx emission rate. The emission rate was reduced by 50.33% in 2016 compared with 2007.

III. Waste and water resource managementA. Waste management and disposal

As the WEF research report points out expectedly, the total weight of the plastic waste produced all over the world will exceed the total weight of the marine fishes in 2050. As a user of the marine resources, it is our obligation to minimize the impact on the ocean. We have made plans for the solid garbage or liquid waste produced during the transport and dispose them according to the international and local environmental regulations. We determine how the waste shall be handled according to the garbage management plan and related information is completed recorded in the garbage record book. We strictly observe international and local environmental protection regulations.

Ships on the seaFleet waste disposal policy

We have a complete fleet garbage management plan to deal with all the hazardous waste and

Sailing• Sail the ship at economical speed, if appropriate, depending on the actual circumstances.• Reduce unnecessary ballast water as much as possible.• Maintain appropriate trim to improve the propelling efficiency.

The Evergreen fleets had a decreasing NOx emission rate. The emission rate was reduced by 60.01% in 2016 compared with 2007.

Note:NOx emission = The emission on the certificate*effective output (%)*running hoursNOx emission rate = NOx emission/number of containers/sailing distance(Emission on the certificate: The NOx emission registered on the EIAPP (Engine International Air Pollution Prevention Certificate), indicating the how many grams of NOx is produced when an engine outputs 1 kW and runs one hour.)

Note:The SOx emission rate is based on the total oil consumption of the fleet every year. It contains all types of the fuel oils consumed on the ship.SOx emission (g) = Fuel oil consumption (g)* sulfur concentration (%)/*2



solid garbage on the ship. The plan contains five principal procedures: Collection, Sorting, Disposal, Retention, and Recording. Every Evergreen ship is equipped with stainless steel rubbish bins for sorting of the garbage. The seamen and visitors can throw their garbage in the rubbish bins according to the sorting instructions. The garbage is not throw in the sea to make pollution. We make the fleet garbage management plan with reference to the Supplementary Provision V of the MARPOL. In addition to reduction of the waste and hazardous substances, we encourage to arrange the waste to be unloaded on the shore for further treatment. It will be sorted for reuse, recycle, and reduction. By referring to the international regulations and local regulatory requirements, we establish the 15/25 nautical miles policy to protect the environment around the coast and port and extend the applicability scope of the environmental regulations. We manage the waste based on a higher standard to demonstrate our determination to protect the environment.

Incineratorash

management

Waste oil & waterdisposal

Fleetwaste

managementMedicalwaste

management

Plasticgarbage reduction

(1) Incinerator ash managementOur garbage management policy requires sorting of the garbage into flammable and nonflammable

substances. The flammable garbage, including the rags contaminated with oil, wooden cases, cartons, used napkins, and other wastes that cannot be recovered, are incinerated on the ship. The ash is treated appropriated to avoid production of poisonous substances and then delivered to an qualified vendor on the shore for further treatment.

Since more and more countries have prohibited unloading of oil contaminated rags and greasy filth produced during the operation to the shore, they have been incinerated in the incinerator on the ship within the scope of the legal standard. This is way more ash was produced in 2016 compared with previous years.

Ash discharge volume: 2016 more than 2007 by 17.68%, 2016 more than 2015 by 4.14%

Ash Analysis

M3

Total quantity 60.580 32.770 27.250 23.960 26.620 32.210 43.220 61.055 68.457 71.293

Avg. quantity(per ship) 0.3365 0.2958 0.3286 0.3703 0.4483 0.5706 0.6167 0.7059

(2) Analysis of plastic waste volumeWe prohibit incineration of plastic packages, cans, and bottles on the ship. The plastic garbage

produced on the ship must be unloaded on the shore for recycle. Every fleet is equipped with a Pi water activation and filter equipment of large capacity to ensure the quality and hygiene of the drinking water. We encourage not to buy plastic bottle water to reduce plastic garbage. The plastic garbage volume has been reduced significantly over the past years.

Plastic garbage volume: 2016 less than 2007 by 39.16%, 2016 less than 2015 by 6.07%



Plastic Garbage Analysis

Sludge Analysis

M3

M3

Total quantity 789 688 538 486 441 448 488 517 511 480


Total quantity 46934.4 43397.7 43565.1 42928.8 44991.3 41912.4 42162.1 39392.3


(3) Analysis of waste oil and waterTo reduce the air pollution, we arrange contracted vendors to recycle the waste oil and water

produced on the ship and send them to the institution approved by the government for reuse. Regular maintenance of the main engine, generator, auxiliary boiler, pump and pipeline system is conducted on a regular basis to improve the fuel combustion efficiency and reduce production of waste oil and water.

Total waste oil and water: 2016 less than 2009 by 16.06%

Average production per ship: 2016 less than 2009 by 34%

(4) Medical waste unloaded on the shore for disposalEvery Evergreen fleet has a dispensary

where emergency medical devices and drugs are stored. A ship makes at least one application for unloading of medical waste every year, and the recycle or disposal vendor that meets the requirements of the government boards the ship to receive the medical waste and expired drugs. Depending on the planned shipping route and port, the ports that provide medical waste unloading service are Hong Kong, Singapore, and Los Angeles. If the ship berths at none of these ports, the medical waste shall be stored and sealed on the ship until it berths at the port that provide this service.


The Kaohsiung Terminal Division conducted sorting and collection of the waste produced during the operation of the container yard and maintenance of the hosting machine. The waste of the container yard are classified into general garbage and recyclable waste. With continuous implementation of the waste sorting, the volume of the recyclable waste were increasing every year. We entrust the qualified vendors that have been registered with the Environmental Protection Administration to transport the garbage for incineration and burial at the incinerator approved by the government.

Medical waste unloading statistics in 2016

Waste produced by the Kaohsiung Terminal Division

33

393.8441.36

206.96

426.2

227.19

538.53

12

Hong Kong

2014 2015 2016

Singapore

40

30

20

10

0

600

400

200

0

A total of 45 ships unloaded medical wasteon the shore in 2016

General garbage (ton)Recyclable waste (ton)



To protect the ecological environment, the solid tire used for the ship side chassis is gradually changed to recyclable full rubber tire to minimize the environmental pollution brought about by non-recyclable waste.

Office buildingThe Evergreen Marine office building in

Nankan produces normally general domestic waste. Garbage sorting is implemented and the recyclable waste is handled by qualified professional vendors under authorization for resource recycling and other appropriate treatments. Non-recyclable waste is collected by qualified professional vendors for incineration and burial under authorization.

Waste producein the office building

Fresh water supplyto the ship (ton)

Annual tap water consumptionin the office building (degree)

Kaohsiung Terminal Division water resources consumption

Kaohsiung Terminal Division sewage treatment volume (CMD)

76.2

108,239

25,891

99,848

25,965

30,949

1253.78

31,705

4883.52

95,744

24,641

5.36

45

9.01

72

5.68

2014

2014

2014

2015

2015

2015 2016

2016

2016

2015 2016

100

80

60

40

20

0

110,000

105,000

100,000

95,000

90,000

85,000

26,500

26,000

25,500

25,000

24,500

24,000

23,500

31800

31600

31400

31200

31000

30800

30600

30400

6000

5000

4000

3000

2000

1000

0

General garbage (ton)Recyclable waste (ton)

B.Water resources recycle and discharge

Ships on the seaUse of water resources

Most of the fresh water used on the ship is produced with the fresh water generator (with the seawater as the source). Fresh water is also supplied from the shore when the main machine or fresh water generator must be stopped for maintenance or repair or the water tank must be cleaned in consideration of the factors such as the voyage or port and, thus, fresh water is not adequate for use on the ship. It is up to the captain to select the port on the shipping route where the price and quality of the water are appropriate to add marine drinking water and fresh water in consideration of the actual demand.

Waste water emission management

Waste water produced on the ship sailing on the sea:

Wastewater emission management

Engine room bilge

water

Graywater Sewage

Annual tap water consumption (degree)

2015 2016

Sewage treatment volume (CMD)

1. Engine room bilge water2. Sewage Evergreen fleets use the sewage treatment

device that meet the requirements of the International Convention for the Prevention of Pollution from Ships all the time during the sailing. A standard stricter than the international requirements is used to ensure that discharge is conducted in the area 15/25 nautical miles away from the shore.

3.Gray water is the discharge of the dishwater and dirty bathwater, laundry water, shower water and wash-basin water. Though the applicable MARPOL does not cover the treatment of gray water, we take measures stricter than the requirements of the convention and install a gray water cabinet or additionally attach it to (or modify it) on the ship. The gray water is stored in the cabinet. It is not discharged within 15/25 nautical miles away from the shore.

LandKaohsiung Terminal Division

The purpose of the tap water that the Kaohsiung Terminal Division uses is mainly for washing the containers. Though the consumption of the water sources increased in 2016 due to the workload, the water intaking from the water sources is not affected. The dirty water left from washing of the container and hoisting machine is collected and led to the sewage treatment plant at the container yard. The waste water is discharged to the sea only when it is purified to meet the required standard. The purified water is so far not recycled.

Office buildingTap water is used every day in our office

building in Nankan. The wastewater is discharged into the municipal drainage and treated appropriately.



IV. Sustainable shipping developmentA. Design of environment-friendly ships

All of our new ships meet the requirements of the latest environmental regulations. The energy efficiency improving and GHG emission reducing functions are integrated in the design to minimize the load to the environment using the state-of-the-art technology. For example, the Low-Load Turing EGB is adopted for the fuel consumption control mode of the main engine to save the fuel and reduce the GHG emission at low cruise speed. The line of the ship body is optimized to meet the EEDI energy efficiency standard and possibly save more energy.

A space is reserved for the AMP system. This and the dock equipment may work together to save energy and reduce carbon emission. To reduce production of NOx, new ships are equipped with electronically controlled engines that meet the IMO´s NOx Tier II emission standard. In consideration of the stricter low SOx emission regulations in 2020, new ships are designed to ensure use of low-sulfur fuel oil, and a space is reserved for installation of the scrubber for removal of the sulfur.

Environment-friendly refrigerant is used for the reefer and air conditioners of our new ships. These and the gray water holding tank and wastewater treatment equipment can jointly reduce the impact on the environment.

B. Design of containersWe actively adjust the design of the material for the container floor, paint, and the sealant used in the

container to reduce the impact on the environment.

Material of the floorTraditional containers are made of wood and, thus, bring about hewing of the tropical rain forest,

damage to the ecology, and influence on the conservation of water and soil. Bamboo-wood floors have been applied to our new dry containers since 2013 to reduce consumption of the wood by 50%. Bamboo features short growing period, hard texture, and wear-resistance. It is acquirable more easily. The total number of the new dry containers that were equipped with bamboo-wood floor has been reached up to 259,000 TEU in 2016, occupying 70% of the total containers.

PaintChina established an atmosphere pollution prevention law in 2013 with a goal to reduce the emission

of VOCs (Volatile Organic Compounds). For this, we tried water-based paint and applied it to 1,800 TEU of containers in the CIMC Dalian plant in 2013. We will spare no effort to act according to the current and futures.

AdhesiveWater-based sealant has been used as a replacement in the new dry containers of the Company since

2014 to substantially reduce the odor and atmospheric pollution due to volatilization of the solvent.

Bamboo-wood container percentage

120%

100%

80%

60%

40%

20%

0%2013 2014 2015 2016

200,000

150,000

100.000

50,000

0

Bamboo-wood usage (TEU)

Wood usage (TEU)

Bamboo-wood percentage (%)

27,20028,000

72,000

62,000

142,740

32,600◆ Environment-friendly Refrigerant for reefers and

Air Conditioners (GWP: Lower than 2,000)

◆ Reserved Space for Low SOx Emission◆ Reserved for

AMP System

◆ Airtight Stern Seal

◆ Fuel Compartment with Protection Function

◆ Electric Deck Machinery

◆ Carbon Reduction Type

◆ Optimized Hull Form with High Efficient Propulsion System

◆

◆

Cargo Hold Sewage Holding Tank

Latest Drag-Reduction Anti-Fouling Coating

◆ Low Sulfur Fuel System

◆ Minimum Ballast Design

◆ Gray Water Holding Tank

◆ Ballast Water Treatment Plant

◆ Port Service Pump Reducing Generator Load

◆ Nox Tier II Electronic Controlled Fuel Injection Engine with Low-Load Tuning EGB Fuel Control Mode

■ Environmental Protection Notation with Classification Society (ABS: ENVIRO & GP Notation; NK: EA & IHM Notation)

■ Green Passport to Comply with Convention of Vessel Recycling



C. Preservation of biodiversityBallast waterImpact of ballast water on the environment

The ballast water ensures the safety and stability of the ship. However, the ballasting and discharge of the ballast water produce harmful aquatics and pathogens that may transfer to the port in another sea area. The International Maritime Organization approved the “International Convention for the Control and Management of Ships' Ballast Water and Sediments＂ (BWM Convention) in 2004. It aims to prevent, reduce, and finally eliminate the transfer of harmful aquatics and pathogens and, thus, the hazard to the environment, human health, property, and resource by controlling and managing ship´s ballast water and sediments.

Requirements of international regulations

(1)The requirements and status quo of the BWM Convention The BWM Convention will take effect in September 2017. All the commercial ships must be

equipped with ballast water treatment equipment when they renew their IOPPC (International Oil Pollution Prevention Certificate) for the first time after September 08, 2019.

(2) The Ballast Water Management Discharge Standards of the United States Coast Guard (USCG) USCG established the Ballast Water Management Discharge Standards in 2012. According to the

Standards, any ship that needs to change the ballast water at a port of the U.S.A. before 2016 must treat its ballast water via D-1 in the area 200 nautical miles away from the shore before it is allowed to discharge the water at the port. Any ship in the shipyard after 2016 and all the new ships built after 2013 must be equipped with ballast water treatment equipment to meet the requirements of the USCG.

Measures of the Evergreen MarineIn addition to the L-type ships that have been equipped with ballast water treatment equipment, we

have procured the ballast water treatment equipment and installed it to the ships in service since 2016 to achieve the goal of green sailing.

All of our ships have an ballast water management plan. The ships of all types use the UV sterilization method to eliminate the microorganism in the ballast water. The A-type and P-type ships will be equipped with the bal last water treatment equipment within the scheduled t ime frame of the BWM Convention.

Preservation of whalesWe participate in the Vessel Speed

Reduction Program in different regions of the world to reduce the risk of hitting the whale. What we have done were highly recognized and won the Excellent Environmental Protection Award from the Los Angeles Harbor Department. We have devoted ourselves to the maintenance of the marine ecology and harbor district for many years and executed many environmental protection projects in cooperation with the government agencies, research institutes, cargo owners, and the companies related to the shipping service chain. We will still contribute to the sustainable development of the marine environment.

We participated in the “Vessel Speed Reduction Program＂ sponsored by the National Oceanic and Atmospheric Administration (NOAA) in 2016. We won the Excellent Environmental Protection Award from the NOAA because all of our ships reduced the speed voluntarily in the Santa Barbara open seas away from the Port of Los Angeles and Long Beach. We participated in the Santa Barbara open seas speed reduction program in 2016. The ships involved in the program included the S-type ship that won the “Ship of the Year Award＂ from the Lloyd's List and the new L-type ship of the next generation that was delivered and put into service in recent years.

Care for employees and Environmental Safety

04

I. Talent attraction and development

II. Employee communication and care

III. Protection of working environment


｜｜Care for employees

and Environmental Safety

Highlights• Cooperation with the National Kaohsiung Marine University to offer special shipping technology

classes for the graduates• The first“ship-shore rotation＂system in the industry• Launch of the Employee Performance Improvement Support Program


We provide all of our employees with free physical examination and place importance on the hygiene of the ship. We set up complete medical equipment and the dispensary provided medical consultation 24 hours a day to improve the health management capability of the employees.

SDG8

We observe the laws and regulations related to occupational safety and health, and make the meeting of the Occupational Safety and Health Committee, establishment of policies, and education training workable. We provide periodical fire fighting and evacuation training and establish preventive measures for the employees who work at high risk to ensure a safe working environment.

Structure of employeesWe recru i t outstanding ta lents to

enhance the advantage of the team, meet the requirements of the extended global business, introduce new ships of good performance, form alliances with other shipping companies, and engage in associate shipping business to optimize shipping lines and service networks. The number of employees has increased continuously over the past three years. The number of Evergreen Marine´s employees was 1,572 on December 31, 2016. Of those, 1,292 employees served on land and all of them were

Number of employeesfrom 2014 to 2016

YearLand crew Sea crew

TotalMale Female Male Female

2014 911 268 329 9 1517

2015 939 299 302 7 1547

2016 980 312 272 8 1572

Structure of employees

Employees statisticson December 31, 2016 Female Male Subtotal Percentage

Age

Over 60 1 69 70 0.04

50-59 16 214 230 0.15

40-49 88 411 499 0.32

30-39 129 333 462 0.29

20-29 86 225 311 0.20

Educational background

Master degree 36 133 169 0.11

Bachelor degree 230 711 941 0.60

Junior college 47 244 291 0.19

Senior high school (vocational) 7 142 149 0.09

Junior high school and below 0 22 22 0.01

Official rank

Top management 5 74 79 0.05

Middle management 13 114 127 0.08

Supervisor 48 258 306 0.19

Non-management 254 806 1060 0.67

Function

Business 15 195 210 0.13

Professional 92 264 356 0.23

Management 190 198 388 0.25

Technique 15 323 338 0.22

Marine service 8 272 280 0.18

Region

Taiwan 320 1206 1526 0.97

Europe 0 1 1 0.00

Asia 0 45 45 0.03

Total 320 1252 1572 1.00

I. Talent attraction and developmentA. Overview of employees

natives. A total of 280 employees served on the ship. Of those, 234 of them were natives and 46 of them are foreigners including seamen from China.




B. Recruitment and industry-academy collaborationRecruitment

In consideration of the growth of the global cargo transport business and the training of international marine talents for the business in the future, we started the recruitment project in 2016 to select young people who have a macro view of the world to engage in the shipping business.

Industry-academy collaborationWe work closely with maritime schools for many years including provision of on-board practical

training, dispatch of experienced instructors to give lessons at the school, provision of career lecture courses, etc. to attract outstanding talents to joint our shipping business.

(1) Special shipping technology classes for the graduatesWe enhanced the cooperation with the

National Kaohsiung Marine University in 2016 to offer the first special shipping technology classes for the graduates. Qualified participants after the class will have the opportunity to take 1-year practical training on the ship. The participant who has good performance during the training can join the Evergreen fleet.

Number of new employees from 2014 to 2016

New employees

Land crew Sea crewTotal

Female Male Female Male2014 9 60 3 73 145

2015 10 58 5 48 121

2016 20 32 2 30 84

Number of employees leaving office (incl. retired employees)from 2014 to 2016

Employees leaving office

Land crew Sea crewTotal

Female Male Female Male

2014 9 32 1 22 64

2015 10 57 1 31 99

2016 15 42 1 32 90

(2) Lecture coursesWe have dispatched senior seamen to National Taiwan Ocean University to give lecture courses on

“Ship Operation Practice＂ and “Marine Engineering Practice＂ since 2016.

(3) Provision of cooperative education programs and practical training opportunities for domestic maritime schools and collegesWe have honorably acquired the “First Place in Accepting the Students from Domestic Maritime

Schools and Colleges for On-Board Practical Training and in the Total Number of Days＂ from the Ministry of Transportation and Communications＂ for seven consecutive years since 2010. We arranged 75 students from domestic maritime schools and colleges to take practical training on the ship and 11 students to take practical training on the shore during the summer vacation in 2016.

C. Fair promotion and treatmentHuman rights and compliance

As a leading company in the global container transport service, we are especially concerned about our social responsibility and ensure smooth communication with all the involved stakeholders. We observe the “Universal Declaration of Human Rights＂ and the core labor standard of the “International Labor Organization Convention＂, and have never prohibit or obstruct our employees from forming associations freely. No discrimination, forced or compulsory labor, or infringement upon the rights of the indigenous people occurred in 2016.

As for the management policy and procedure, we always prohibit child labor, eliminate discrimination in recruitment and employment, pay a fair wage, and carry out training, evaluation and promotion, and held labor-management meeting to ensure full communication. We form a special occupational safety and health team and conduct health, safety, quality, and environmental risk assessment according to the HSQE management system to protect occupational health and safety.

D. Training of talentsEducation and training

We persist in the ideal of “talents are the most important assets of an enterprise＂ of Dr. Chang Yung-Fa, the founder of the Evergreen Group, and provide complete training courses for the employees. We ever won the “Training Award＂ under the “Lloyd´s List Asia Awards＂ of the authoritative medium in the global shipping industry, Lloyd´s List, in 2014. This is a great recognition of our long-term devotion to the professional training of our employees on the ship and shore. The purpose of the training is to provide premium shipping service and ensure operation safety.




Number of training hours for the employees on the ship and shore in 2016

Item

Land crew Sea crew

Management Non-management

SubtotalManagement Non-

managementSubtotal

Female Male Female Male Female Male Female Male

Employees 59 329 253 651 1,292 7 117 1 155 280

Total training hours 1,659 6,474 5,792 11,861 25,786 312 1964 0 4072 6348

Average training hours 28 20 23 18 20 45 17 0 26 23

Educational training expenses for the employees on the ship andshore in 2014-2016 (Unit: NT$)

Category 2014 2015 2016

Land crew 1,582,978 1,855,639 2,201,539

Sea crew 8,521,694 8,585,319 8,872,065

Total 10,104,672 10,440,958 11,073,604

1. Training of Land crewThe training courses for Land crew on the shore include new employee training, departmental

professional training, external professional training, training of management function, domestic cross-department rotation and international talent training, and study of language. Lecture courses on the Fair Trade Act and Evergreen Group Loss Prevention symposiums are provided on an irregular basis as well.

We introduced the functional analysis technique in 2004 and applied it step-by-step to the training of the employees. The training of employees in 2016 focused on helping the management personnel develop their management knowledge. For this, we arranged management training courses and provided them in different phases.

Management training

Internal professional trainingExternal

professional training

Dept.-level new employee

training

Study of language

Lecture courses

Company-level orientation

training

Land crew training map




2. Training of Sea crewFor the seamen who are waiting ashore for assignment, we arrange professional training for them

according to the 2010 amendment of the STCW Convention (International Convention on Standards of Training, Certification and Watch-keeping for Seafarers) and additional acclivities depending on their individual functions on the ship, including dissemination of policies, ship-borne system operation instructions, and professional function enhance courses to ensure that seamen can lean the latest shipping knowledge and technology and enhance their professional marine engineering capability.

The EVERGREEN Seafarer Training CenterWe established the “The EVERGREEN Seafarer Training Center＂ in 1999 to develop various

teaching aids and software for diversified teaching methods. The Center is dedicated to improving the professional techniques of the seamen with a set of complete equipment and strict professional standards. In addition to train the seamen of the shipping companies under the Evergreen Group, the Center offers opportunities to a fixed number of seamen from other shipping companies and provides them with the training courses required by the Convention according to the policy of the competent maritime authority in Taiwan. This is what we are doing for training of the seamen in Taiwan.

Cross-discipline rotation training

Multiple development opportunities

Ship-shore rotation training

International talents training

Rotation statistics from 2014 to 2016

2014 2015 2016

180160140120100

80604020

0

Cross-discipline rotation

Cross-nation rotation

Ship-shore rotation

156 162 112157 162 164

90

125 116

E. Rotation and development of internationalizationEvergreen Marine is an international shipping company. We have

deepened our base in Taiwan and deployed the resources all over the world since our establishment. By offering various expatriation opportunities, we have trained many marine management talent at different levels who have internationalized operation visions and capacities.

Rotation trainingWe improve the functional capability and

productivity of the employees by implementing cross-discipline and cross-nation rotation training. This is helpful for the employees to extend their vision and developing their career while promoting the business. By taking the training, they can prepare themselves for the needs of the business in the future.

International talents trainingEvergreen Marine has a service network stretching to the five continents in the world and employees

have many expatriation opportunities. Of them, 379 employees were expatriated for execution of shipping business in 2016 (the statistics on December 31, 2016). We are one of the few companies that is internalized so deeply and broadly in Taiwan.




II. Employee communication and careA. Performance evaluationEvaluation system

All of the employees have been subject to regular performance evaluation since their appointment to review the results of their work. The result of the evaluation is used as a reference for the development of the career in the future.

1. Evaluation of Land crewNew employees are assigned to each business unit after they have reported for duty and finished the

orientation training arranged by the Human Resources Department. They are subject to evaluation of their performance during the probation period prior to the end of the 3rd month after commencement of their job.

2. Evaluation of Sea crewAfter being assigned to a ship, new seamen start a 3-month practical training (probation) and the

supervisor on the ship evaluates the performance of these new seamen.

With the help of the computerized seaman performance evaluation system, the supervisors at different levels conduct performance evaluation twice every year. The result of the evaluation is used as a basis for renewal of the contract and promotion.

Employee Performance Improvement Support Program

The major point of the management in the future is how to improve the work efficiency of the employees and help them create the highest work performance within a given time frame to ensure the overall competitive strength of the Company. We have discovered the methods for improvement of the work performance through review and analysis since 2016, and helped the employees improve their performance continuously to support the development of the Company and maximize the benefits.

Capability

Motive Goal

To take care of the life of the expatriates, we provide subsidies for their family, rent, airline ticket for visit to their family in addition to the arrangement of transfer, relocation, and living with relatives. We also provide medical, accident and life insurance to ensure that expatriates can work abroad without concern.

B. Communication and complaintLabor's rights and interests

We observe the Labor Standards Act to protect the rights and interests of the labor. We ensure mutual communication and create harmonious labor-management relations by holding labor-management meetings to seek for cooperation and make explanation.

Employee communicationWe hold labor-management meetings and implement a regular or mutual communication system.

We value the communication with the employees and establish an regular or mutual communication system via the departmental meeting, electronic bulletin board, employee training, seamen forum, official web pages of “Stakeholder Area ~ Employee Area＂ (http://www.evergreen-marine.com/tw/tbi1/jsp/TBI1_Stakeholder.jsp).

Employee's complaintsWe have established the “Employee Complaint Regulations＂. An independent reporting mailbox

([email protected]) is set up for internal and external personnel. We did not receive, deal with, or reconcile any labor practice complaint, human rights complaint, or social impact complaint via the official complaint system in 2016.

Labor-management disputesWe value mutual communication and ensure smooth labor-management communication. We observe

laws and regulation and are dedicated to creating a good atmosphere of harmonious labor-management relations.




Physical examinationEmployees are treasurable assets of the Company. In

addition to the checkup and general physical examination, we hire labor health nursing staff to provide employees with health management, prevention of occupational disease, health improvement, and other health protection services. Sports and recreational facilities are available for the employees at the workplace to improve their health and physical condition and enhance the competitiveness of the Company.

Hygiene inspection is conducted every six months on every ship of the Evergreen Marine to acquire the SSCEC (Ship Sanitation Control Exemption Certificates) and meet the international hygienic conditions and standards.

There are three major points with respect to the health service and improvement of the seamen:

1. Holiday Two holidays every week.

2. Annual paid leaves As specified in the Labor Standards Act.

3. Pension system As specified in the Labor Pension Act.

4. Insurance

Labor insurance, national health insurance, group accident insurance, medical insurance covering hospitalization and injury for the employees traveling abroad for business, group term life insurance with a preferential rate.

5. Meals Nourishing and healthy free lunch, overtime meal, and on-duty meal at the canteen.

6. Health care Professional physicians give medical advices and general medical treatment. Free physical examination.

7. Recreational activities

Employees buying tickets for a domestic flight of UNI AIR or living in a hotel of the Evergreen Group in Taiwan or overseas can enjoy a preferential discount.

8. Educational training

We provide regular and irregular educational training, professional lecture courses, workshops, and subsidies for foreign language training every year.

9. Operating performance bonus

Year-end bonus, dividends (listed company)

10.Other subsidies

Wedding/funeral subsidy, wedding bonus, funeral money, injury or illness consolation money for injury or illness, emergency aids, family subsidy for transferee, allowance for expatriates

11.Clothes Evergreen Airline Services provides preferential clothes washing service.

12.Clubs 24 clubs: basketball, tennis, softball, badminton, table tennis, swimming, Taiji for the health, yoga, mountain climbing, golf, Latin aerobic exercises.

C. Welfare and careWe treat our employees as the most important assets of the Company. In addition to observing

relevant laws and regulations, we consider care for employees our mission and provide a friendly workplace for the employees to work without concern.

Employee welfare - All of the full-time employees can enjoy the following benefits

A complete set of medical facilities including drugs and medical devices that meet the requirements of the IMO (International Maritime Organization) is available on the ship.

Every officer on the ship takes ashore medical and first aid training before starting the work, so that they can have practical emergency medical treatment capability and can protect the safety and health of the seamen during their work period on the ship.

The dispensary provides medical consultation 24 hours a day. When a seaman encounters any accident or is sick and needs emergent medical consultation, the captain can instantly contact the physician of the dispensary by satellite phone or email and acquire real-time medical instructions and keep following the condition of the patient.




III. Protection of working environmentA. Fleet safety culture

The feet management policy of the Evergreen Marine is described below.

1. We are dedicated to establishing all the safety protection systems to eliminate identified risks, and provide the seamen and other employees of the Company a safe and healthy working environment within the scope of the management system.

2. We are dedicated to preventing pollution due to greasy dirt, garbage, and hazardous substance, and reducing waste gas emission as much as possible.

3. We are dedicated to meeting the requirements of applicable international safety and anti-pollution conventions, and do our best to observe the regulations with respect to protection of the air, ocean, and environment.

B. Focus on the safety of employeesOur Occupation Safety & Health Department hires occupational safety and health staff and executes

safety and health management and supervision according to the law in order to promote safe workplaces and prevent occurrence of occupational disasters. Related tasks are described below:

1. We observe the occupational safety and health management policy and make suggestions about the safety and health policy of the Company at the meeting of the Occupational Safety and Health Committee that the President preside over every quarter. We are also engaged in the review, coordination and recommendation of the matters related to the safety and health.

2. We establish and announce the safety and health rules applicable to the Company according to relevant occupational safety and health regulations, and ask all the employees to observe and implement accordingly.

3. We provide following safety and health training of new and existing employees according to relevant occupational safety and health regulations. (1) Overview of relevant safety and health

regulations required for the operation(2) General ideas and rules of occupational

safety and health(3) Self-inspection before, during, and after

the operation(4) SOPs(5) Emergency response measures(6) General sense and exercise of fire fighting and first aid(7) Other safety and health knowledge related to the work of the workers

4. We provide employees with free physical examination and consultation of the result.5. We provide educational training of the employees for fire fighting and evacuation according to

the Fire Services Act and its enforcement rules.6. We observe the Occupational Safety and Health Act and establish and implement the “prevention

of musculoskeletal disorders induced by repetitive operations and related works”, “prevention of ailments induced by exceptional workload”, “prevention of wrongful physical or mental harm caused by the actions of others during the execution of job duties”, and “maternal health protection at the workplace”

7. The office building is guarded by security guards 24 hours a day to protect the safety of the employees and properties of the Company.

Promotion of Education and Contribution to Society

05

I. Promotion of education

II. Contribution to society


｜｜ Promotion of Education

and Contribution to Society

Highlights• 8 career lecture courses on “Away from Poverty by Sailing - Create a Golden Shipping Line for

Yourself＂ were provided and about 2100 persons were benefited• More than 60 marine culture lectures have been held in the Evergreen Marine Museum and

attracted about 3000 participants• Scholarships and grant-in-aids to the amount of NT$116.2 million were provided for 386

students in China


We have rent docks at Kaohsiung Harbor for many years and rebuilt them in the hope to have them better and make use more of their capacities for larger ships, higher operation efficiency, less energy consumption and air pollution, and reduced operation risk for the employees. By doing so, we make a contribution to the sustainable development of the infrastructures.

SDG10

We are dedicated to promote the “Away from Poverty by Sailing＂ and provide channels and information for potential sailing talents to enter the shipping industry, give an equal opportunity for disadvantaged families, and help them be lifted out of poverty.

I. Promotion of educationA. Training of next-generation sailing talents

The Evergreen Group started from shipping service. Now we have expanded our territory to the shipping routes all over the world. Dr. Chang Yung-Fa, the founder of the Evergreen Group, always valued the training of the sailing talents. When visiting the poor families around Taiwan, Chang Yung-Fa Foundation hopes to extend the vision of their children by means of education. It raised the idea of “Away from Poverty by Sailing＂ to solve the financial problem of the disadvantaged families on the one hand, and reserve sailing talents for Taiwan on the other hand.

The personnel of the Chang Yung-Fa Foundation visit the schools in remote villages and share the joys and sorrows with the students so that they can personally go through the scene and understand the living conditions and work environment on the ship. These give the students from disadvantaged families a chance to reverse their life. A total of 14 career lectures had been provided from 2012 to 2015. 8 career lecture courses on “Away from Poverty by Sailing - Create a Golden Shipping Line for Yourself＂ were provided together with the Evergreen Marine in 2016 and about 2100 persons were benefited.

B. Popularization of marine cultureVarious promotion and education activities were provided in the Evergreen Marine Museum.

Dr. Chang Yung-Fa, the founder of the Evergreen Group, always valued the marine culture and education. He established the Evergreen Marine Museum on his own and donated 4.077 marine relics that he bought around the world more than 30 years to the museum and had them become the permanent public properties of the society. The Evergreen Marine Museum is the largest private marine museum in terms of the area and collection in Taiwan.

Since its establishment in 2009, more than 60 marine culture lectures have been held in the Evergreen Marine Museum and attracted about 3000 participants. It irregularly sponsors school children in remote villages to visit the museum and arouses their interest in the marine culture.

Special exhibitions and public service activities held in the Evergreen Marine Museum in 2016 are described below:1. Painting-the-Sea Contest:

A painting-the-Sea contest with the theme of “Paint a Marvelous Ship＂ was held in May. All the primary school pupils could participate in the contest. A “Angle Group＂ was specially arranged for the children with disabilities and schools could recommend their works for the contest. The works that won the award and the works of the Angle Group were exhibited in the museum in the hope to call on the public to be concerned with the art education of the pupils and the children with disabilities.

2. Sailing Camp:Many sailing camps were organized in the Evergreen Marine Museum in 2016. These activities had

the purpose to promote marine education and were highly recognized, and the children could learn to love, know, and be close to the sea in these summer camps.




3. Teachers’ Workshop Camp: Almost one hundred teachers from junior and senior schools organized a workshop camp in the

Evergreen Marine Museum. The activity included visiting the museum and DIY teaching. The members of the Evergreen symphony orchestra introduced marine music and the teachers were arranged to see the rehearsal. The orchestra was highly recognized by the teachers for its performance.

4. Prof. Li Qian-Lang Tells the History - Lectures on Taiwan Relics:He called on the public to care

for the relics and ancient buildings in Taiwan. A total of 4 lectures were held and acquired a great response from the public. There was a full house for each lecture.

In the future, we will sponsor more marine culture and education activities in the Evergreen Marine Museum with the spirit of loving, knowing, and being close to the sea of Dr. Chang Yung-Fa, the founder of the Evergreen Group, in mind.

Area 4th Kaohsiung Container Terminal

Total investment amount in 2016 NT$557,000

II. Contribution to societyA. Community relationship and developmentInvestment in infrastructure

To support the development of the Kaohsiung Harbor and the operation requirements of the Company, we rent 6 docks (Docks 79~81 at the 5th Container Terminal and Docks 115~117 at 4th Container Terminal) from Taiwan International Ports Corporation, Ltd. and partially rebuild the back area of Dock 117 to be an operation area for the remotely controllable Automatic Rail Mounted Gantry (ARMG). This allows to store laden containers up to 5,000 TEU and can improve the operation efficiency in the back area, reduce the energy consumption, and minimize the air pollution.

The amount of investment in the infrastructure of each ports in Taiwan

B. Participation in public welfare service• Chang Yung-Fa Foundation awarded grant-in-aids around Taiwan and

arranged shipping career lecturesTo extend the care of Dr. Chang Yung-Fa, the founder of the Evergreen Group, for the children of

disadvantaged families, Chang Yung-Fa Foundation provides (vocational) senior schools and colleges with grant-in-aids for the students from poor families. The total amount of the grant-in-aids in the first half of 2016 was nearly NT$6 million. More than 20 thousand students have received the money and the funds granted to the students have exceeded NT$300 million since establishment of the Chang Yung-Fa Foundation in 1985.

• Chang Yung-Fa Foundation, together with the Evergreen Marine, held the “Rescue Hero - Search Dog Sunny Foster Ceremony” activity.

Chang Yung-Fa Foundation and the Evergreen Marine jointly held the “Rescue Hero - Search Dog Sunny Foster Ceremony＂ and donated NT$150,000 to Taiwan Elites´ Search and Rescue Association as a fund for the food, health care, training, and equipment for Sunny. The Foundation also denoted a multi-purpose hanging vest to Sunny, so that it can reach the location more faster where it cannot reach on foot and execute the mission more quickly. We have devoted ourselves to public welfare activities for many years. These include education, medical service, assistance for disasters, and care for people with disabilities and disadvantaged minorities.

In the collapse of the Weiguan Building in Tainan in January 2016, firemen and rescuers spared no efforts to rescue the victims and what the search and rescue dogs did cannot be ignored. Sunny was one of the dogs joining search and rescue team. Though being injured during the rescue, it actively joined the rescue team after the medical treatment. Its persistence in completion of the mission is very touching.

• Evergreen Marine cared for the remote schools in Hsinchu and donated servers and PCs

We donated 15 high-end servers and 100 PCs to the Department of Education, Hsinchu County Government, to help local schools improve their teaching capability.




Morality MonthlyThere are many touching paragons and stories in the society of Taiwan, but they are not reported.

Media always focus on political struggles, gossips, and sensational stories. The news reporting the good and honest behaviors of the human being are usually not attractive to the public. In consideration that the bad social atmosphere and that the basis of the character education must be set up from the childhood, Dr. Chang Yung-Fa, the founder of the Evergreen Group, decided to issue a magazine that can arouse the good human nature and do what he could to correct the social atmosphere.

The first issue of the “Morality Monthly＂was released in January 2008 for the readers aging from 9 to 99. The simplified Chinese edition was issued in April 2009 to sew the seeds of morality to Singapore, Malaysia, and other Chinese regions. Now, the readers of the magazine reach

C. Spread of ethical good deedsOverseas charity activities• Grand-in-aids for the students

from poor families in ChinaWe assisted a total of 386 students from 20

priority maritime universities, Peking University, and Tsinghua University in 2016. The amount of the subsidies was about NT$11.62 million. The “Friends of Tsinghua - Chang Yung-Fa Foundation Grant-in-Aid for Students from Poor Families＂ benefited 29 students.

• Grand-in-aids for the students from poor families in the AmericaBeneficial to San Francisco State University, University of Houston, and University of South Carolina

up to more than 30 countries. Dr. Chang Yung-Fa said “the more the reader of the “Morality Monthly＂ the better. I wished to issue a magazine long ago. It is always free no matter how the volume of circulation is.＂ The “Primary Morality School＂ was added to the “Morality Monthly＂ in April 2011. The enlarged word, phonetic symbol, and lovely illustration help the children read the magazine even without being accompanied by the teacher or parent. The magazine had its electronic version in 2016 to protect the environment and the earth.

1,700 schools, institutions, and teachers use the “Morality Monthly＂as the teaching material of the character education. It is also used in the reading and discussion, writing of the reading results, speech contest, and even in the writing and poster competition activities or used as the source of examination questions. Some correction schools use the“Morality Monthly＂as a reading or writing material for the inmates. Many inmates find it beneficial after they leave the correction school. They change their address and telephone number by mail or phone in the hope to receive the magazine continuously after they come back to the normal life.

As Dr. Chang Yung-Fa said, “The goal of the magazine is achieved when one of a million of people is influenced positively.＂

Evergreen_CSR_2016.pdf - EVERGREEN MARINE CORP.

Documents

Transcript of Evergreen_CSR_2016.pdf - EVERGREEN MARINE CORP.