Green Management - CTCI-Thai

Green ManagementGreen ManagementMastering in

toMaximize Value of Energy

2014 CTCI Corporate Sustainability Report


89, Sec. 6, Zhongshan North Road, Taipei 11155, Taiwan, R.O.C.Tel: (886) 2-2833-9999 Fax: (886) 2-2833-8833Website: www.ctci.com.tw

VisionThe Most Reliable Global Engineering Service Provider

PrinciplesProfessionalism Integrity Teamwork Innovation

MissionTo Satisfy Our Customers with the Optimized Engineering Services


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004 Message from the Top Management008 Editor’s Note010 Evaluation and Response to Stakeholders and Materiality Issues015 CSR Promotion

Special Report

022 CPC Talin #10 SRU Sulfur Recovery Plant EPC Project, Green SRU that Enhances Industrial Competitiveness and

Reduces Pollution

Operation and Governance

032 Company Overview036 Corporate Governance044 Finance Disclosure046 Future Prospects

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Social Participation

084 Building Healthy and Happy Work Environment104 Building Friendly and Harmonious Partnership120 Professional Participation and Social Services

Environmental Protection

052 Performance of Green Engineering Implementation072 Build Energy-Saving and Carbon-Reduction Office Environment076 Transform Waste into Resource

Third Party Verification Statement

131 Appendix I: Correspondence between this CSR Report and GRI G4.0 Guideline

147 Appendix II: Correspondence between the Ten Principles of the UN Global Compact and CTCI CSR Indicators

148 Appendix III: Correspondence between the Seven Core Subjects in ISO 26000 and CTCI CSR Indicators

150 Appendix IV: Determination Items of the Corporate Social Responsibility Best Practice Principles for TWSE/GTSM-Listed Companies

C TCI was founded 30 years ago and has now topped

in the "Leading Global Provider of Engineering

Services and Innovative Technologies" with dominance

on international stage. In pursuit of the sustainable

development and management performance of the

company, CTCI constantly devotes in the implementation

of Corporate Social Responsibility (CSR) by responding

to the issues cared by the stakeholders. In 2014, we

have been rated as A++ for Information Disclosure

and Transparency Ranking System, listed among "Top

50 for Excellence in Corporate Social Responsibilities

and the Top 2000 Enterprises in the 2014 Survey of

CommonWealth Magazine and retained Top 1 in the

contractor sector for years in a row and, recognized by

the Taiwan Institute for Sustainable Energy with the honor

of "Services Industry Silver Award" under the Taiwan Top

50 Corporate Sustainability Report Award, "Transparency

and Integrity Awards" , "Growth through Innovation

Awards" , Public Construction Quality Excellence Award

from Ministry of Economic affairs, Energy Saving and

Carbon Reduction Mark from EPA, Executive Yuan, and

Taipei City Excellent Health Workplace. Moreover, CTCI

has received a special report on "Best Practice" from

the CommonWealth Magazine in the special report

of "CSR", and was invited to deliver a speech at Taiwan

Stock Exchange, sharing the integrity management and

implementation of corporate social responsibility as

well as participation in corporate sustainability seminar.

These special honors represent CTCI's commitment

and devotion in CSR with high recognition, which also

fully exhibits the actual actions taken by CTCI with

determination to give feedback to the society.

Looking into the future and under the philosophy of

Message from the Top Management

corporate sustainability, we have developed mid-term

objectives and strategies in an attempt to proactively

create profits and growth, strengthen organizational

synergies and manpower qualities as well as enhancing

brand image and corporate competitiveness. Moreover,

with regards to strengthening CSR conducts, our key

work in 2015 includes: operation and governance –

implementing e-voting and strengthening information

security management environmental protection –

continue to promote green engineering and establishing

data system platform; social participation – promoting

corporate volunteers and strengthening health

promotion activities in response to Occupational Safety

and Health Act. To follow up the trends of international

sustainabil ity for expansion of overseas business

and enhancement of international visibility, we have

also started planning for listing on DJSI (Dow Jones

Sustainability Index). All of the above are aimed to help

us grow and strengthen constantly in order to meet the

expectation of all stakeholders. We believe that under

the full efforts exerted by CTCI employees, we will soon

succeed and accomplish our goals.

Looking Back 2014 with Active Progress, Surpassing and Creating Multi-Win Situations

Looking back 2014, our business strategy has shifted

from conservative to proactive in terms of "operation

and governance." In spite of the increasingly intense

market competition in engineering while surrounded by

tough competitors, we must take challenges forward in

pursuit of sustainable growth and with risk management.

Fortunately, under the full collaboration of the group, our

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performance regardless in new contract signing, revenue

or constructions is remarkable and has far exceeded that

of 2013.

With regards to environmental protection, we continued

to promote green engineering concept in 2014 to help

customers adopt economical and feasible environmental

protection and energy saving project with a full life cycle

perspective from the engineering design stage of the

plant to the final decommissioning. Consequently, CTCI

will create multiple-win situation among CTCI, partners,

stakeholders and social environment.

Other than taking consideration of the evaluation

standards of Dow Jones Sustainability Index, CTCI also

strengthens its conduct in terms of environmental

protection and energy saving. CTCI also collects various

information and develops new items in environmental

protection and energy saving measures from the

experience of cooperating with international engineering

companies, thereby implementing the energy saving

and environmental protection management of various

operating sites. Moreover, we help CTCI employees start

from identifying with the concept of energy saving and

carbon reduction by establishing good habits of green

protection.

For supply-chain management, we also encourage the

vendors/suppliers to jointly invest in environmental

protection. Star ting from 2014, the supply-chain

in format ion assessment s tandards wi l l inc lude

environmental management, labor conditions, human

rights, and social impacts as well as other corporate

sustainability evaluation for use by CTCI as important

reference in purchase strategies to establish a supply

chain of sustainability development.

In terms of "social par ticipation," C TCI targets at

company employees, average social groups and

community residents. For employee care, in addition to

providing quality learning channel and environment,

valuing employee personal career development and

comprehensively promoting individual development

plan (IDP), CTCI is committed in the establishment

of a safe, happy and healthy work environment by

introducing international safety and health environment,

quality management standards, and rigorous internal

audit standards in an attempt to build a safe, quality

and protecting work environment through layers of

control. Moreover, we also established a health center

to provide stationed services of professional physician

while employing two registered nurses to assist with

medical care and organizing various health promotion

activities, so employees will receive care physically,

John T. Yu Chairman & CEO

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mentally and spiritually. In 2014, we also completed the

health management system to carry out exclusive health

promotion plan for different groups of employees in

addition to cooperating with external resources such as

the health bureau, health service center or hospitals and

clinics for providing employees with medical information

platform through a comprehensive health care network.

With regards to community resident communication

and community integration, CTCI has been cooperated

with Zhishan Cultural and Ecological Garden for years

and co-sponsored and organized Shi-Lin District annual

cultural festival. In 2014, a performance report on the

"Shilin Cultural Festival: Scenic Zhishan" were printed

in 2014 to record the origin and development of past

activities, in addition to releasing the manual to the VIPS

and participating public at Cross Strait (Xiamen) Cultural

Industry Fair in 2015. This way, Shi-Lin local music and

cultural integration activities will be better known to the

public, thereby linking the network connecting cross-

strait culture, benefiting the promotion of community

culture.

Projecting Into 2015, Six Major Strategies for Constant Improvement and Excellent Performance

Project ing into the 2015 planning and in terms

of corporate governance, C TCI has def ined the

overall business orientation as "start afresh with firm

determinations" by setting up three years of mid-

term objectives between 2015 and 2017 in addition

to developing s ix strategies. Meanwhile we wil l

introduce e-voting system to strengthen the philosophy

of corporate governance. Additionally, to reduce

information security risk, we have specially introduced

ISO27001 with cer tif ication from BSI to continue

advancement in the information security management

system in addition to promoting this philosophy to all

subsidiaries, thereby comprehensively upgrading the

group information security management in conformance

to the international quality demand.

The aforementioned six strategies can be divided into 2

dimensions, namely business and management. The key

to business dimension include two categories: "maximize

existing business" and cultivating new venture." On

one hand, it will strengthen the front-end engineering

design ability by extending and building solid foundation

to maintenance business while providing customer

with better services and wining customer trust. On the

other hand, it will help CTCI acquire certain professional

technology and tendering qualification in a short period

of time, thereby striving for more business opportunities

while constantly expanding overseas market business

and maximizing existing business. In response to the

diverse and fluctuating global environment, we closely

observe the latest market development with foundation

in revenue stabilization and profitable business to seek

for more forward-looking investment opportunities.

The strategies related to management are divided

into "optimizing engineering services," "cultivating all-

round talents." "building corporate brand image," and

"strengthening synergy throughout CTCI Group."

In terms of "optimizing service," CTCI is committed to

improving the operation process, establishing new

type of supply- chain for shortening the construction

schedule, saving costs, and providing customers with

better, faster and more competitive service quality.

We also continue to promote "talent cultivation" by

providing employees with different educational trainings

required for each profession. We also encourage peers

to take lifelong learning through professional curriculum

in finance, accounting, legal affairs, human resource, and

leadership, so that they will develop internationalization

and perspicacity and thereby possess the different

competency for each critical position.

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In spite of the excellent reputation accumulated by CTCI

in society, CTCI used to focus less on the packaging and

promotion of brand image. In the future, the company

will strengthen "corporate brand" marketing and extend

its global visibility, thereby polish the brand image. Within

the organization, CTCI will strengthen its corporate

philosophy by actively building internal consensus and

gather employee cohesion. In terms of "strengthening

synergy throughout CTCI Group", CTCI has established

a specialized department in 2015 which will maximize

the group synergies through systematic operation and

complete communication.

For conducts in environmental protection, CTCI also

continues to introduce and develop green engineering

technology in its core competency so that CTCI can

constantly propose environmental protection and energy

saving measures in the stages of project quotation

and execution, helping customers implement green

engineering policy. Internally, CTCI will continue to

strengthen green and energy-saving measures by

encouraging the peers to provide creativity and develop

innovation in addition to implementing such measures

in life through the offer of various incentives. Moreover,

the establishment of data system platform collects data

related to energy-saving and emission reduction for

analysis and basis of future improvement.

As for social participation, since "talents" are the most

important asset of CTCI, cultivation becomes the

lesson which CTCI considerably values. In 2015, we will

strengthen online curriculum and the implementation

of individual learning plan to promote the overall

human resource quality. Meanwhile, we will continue

to organize effective health promotion activities and

develop individual health plan and assist with execution

for special groups, in attempt to keeping the employee's

physical and mental state at the optimal condition.

Moreover, CTCI has long been engaged in the active

social welfare campaigns in cooperation with welfare

organizations. For example, Syin-Lu Social Welfare

Foundation and the Children Are Us Foundation are our

long-term cooperation partners. In the future, in addition

to strengthening the cooperation content, CTCI will

promote enterprise volunteer activities to encourage all

CTCI employees to get involved with subsidies.

Upholding CTCI Principles, Realizing Its Vision and Fulfilling CSR

Looking back over ten year ago, CTCI envision to

"becomea leading global provider of engineering services

and innovative technologies" and now with the joint

efforts from all group employees, we have accomplished

the objectives set up then.

Projecting to the future, CTCI has already developed

new vision and expects to become the "most reliable

global engineering service provider" and upgrading

the group mission as "to satisfy our customers with the

optimized engineering services." Although this objective

was profound, it is not unreachable with the efforts from

all employees persisting in the corporate principles of

"professiomalism, integrity, teamwork and innovation."

CTCI is due to fulfill its commitment to the employees,

shareholders, customers, societies, and environment,

thereby fulfills corporate social responsibly and drive the

corporations to grow sustainably.

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C TCI issued the first Corporate Social Responsibility

(CSR) Report in 2008 and publish an annual report

to stakeholders with description of sustainable conducts

in management each year. To conform to international

trends and uphold to the philosophy of sustainability of

CSR, CTCI renamed the "Corporate Social Responsibility

Report" to "Corporate Sustainability Report" in 2014. In

2015, in conformance with the "Rules Governing the

Preparation and Filing of Corporate Social Responsibility

Reports by TWSE Listed Companies," CTCI renamed

the report to "Corporate Social Responsibility Report."

The content mainly presents the corporate behaviors

Last report publication Date June 2014

This report coverage period January 1st, 2014 – December 31st, 2014

Scope of coverage for this report CTCI Corporation

Report Editing and Overview

The report includes the activities of CTCI Corporation

from January to December, 2014, in particular some

contents involving subsidiaries and affiliates of CTCI or

exceeding the scope shall be remarked in this report

with source of data to explicitly expound the sustainably

management behavior of CTCI.

Compared with the 2013 report, this year's report

continues to strengthen how CTCI provides customers

with green engineering solutions taking consideration

of environmental protection, green energy, budgeting,

and sustainability through environmental protection and

energy-saving technologies at the engineering design

and quotation stage.

Editor's Note

in management, society and environment. This is the

8th year of publication and the report undergoes

independent attestation by British Standards Institution

(BSI) for the credibility of report content.

Moreover, CTCI provides description on the business

strategies and organizational adjustment proposed

by CTCI in response to the changes in the global and

industr ial environment, in conformance with the

philosophy of corporate governance.

Positions of Various Indicators in the Report

The report covers four topics, namely operation,

environment, society and special report with content of

expression following the "core" option of Global Reporting

Initiative (GRI) G4 version Sustainability Report Guides

(Appendix 1). Moreover, to help the domestic and foreign

stakeholders better understand the actual CSR behaviors

of CTCI and link to the world, the content of the report

◎ Certi�cation of Independent Assurance Opinion Statement conferred to CTCI by BSI.

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Should you have any question or suggestion

for the report content, please contact us via the

following contact methods:

TEL: +886-2-28339999 (Ext. 12210)

FAX: +886-2-28358223

Email: [email protected]

Website:www.ctci.com.tw

also corresponds with the ten principles of UN Global

Compact (Appendix 2), the seven core topics of ISO 26000

International Standards (Appendix 3), and the Taiwan

Security Exchange Center advocated "Rules Governing the

Preparation and Filing of Corporate Social Responsibility

Reports by TWSE Listed Companies" (Note 1) (Appendix

4). It shows that the various affiliated behaviors of CTCI in

corporate sustainable development and the information

disclosure are compete and transparent.

Report Data Measurement Standards

The information and statistical data disclosed by the

report come from the statistics and investigation

results of CTCI, and in particular the financial data have

been attested by certified accountant and announced

according to the law. Some data cited the information

published by government agencies in the website are

presented through numerical description. Any data

requiring conversion shall be noted in the report (i.e.

converting power consumption into CO2 emission).

Report Definition Process

With regards to the "evaluation and response to

stakeholder's and materiality issue," we have re-reviewed

and discussed the various materiality issues and evaluated

through internal/external stakeholders to validate the

issues of concern. Meanwhile we investigated on the

various issues through each department representative

to study the possible impact on the company in order to

address the "operation and governance, "environmental

protection" and "social participation" according to

the significance of issues with complete responses.

Moreover, we also provide a special report on "CPC Talin

No. 10 SRU Sulfur Recovery Plant EPC Project, Green SRU

that Enhances Industrial Competitiveness and Reduces

Pollution." The report will provide a complete description

of the association between the company business and

social responsibility.

The scope and border of the 2014 report do not differ

from the 2013 report and thereby the data provided does

not have any difference due to data re-compilation.

External Verification

In pursuit of the credibil ity of report content, all

information and data announced by the report have

undergone the independent attestation by renowned

BSI in accordance with AA1000 Assurance Standard. The

statement of BSI attestation is also included in this report.

◎ CTCI President Michael Yang (fourth from the le� in the front row) and CSR Commi�ee members took a group photo with Peter Pu, Managing Director of BSI Taiwan (third from the right in the �rst row) a�er the accreditation ceremony.

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Identification of Stakeholders

Refer to the following principles and apply rules of thumb

to identify the important stakeholders of the company

A. Certain group or individual which the company

has relevant responsibility in the legal, financial or

operational decision-making.

B. Any group or individual subject to the impact and

influence produced by the corporate operation.

C. Any group or individual having influence on the

operating performance of the company.

The analysis of the above principles shows that the

priority of stakeholders considered by the company

includes employees, shareholders, community residents,

supplier/sub-contractors, customers and government

related agencies. All department representatives shall

investigate on the view and opinions of different

stakeholders.

Evaluation and Response of Materiality Issues

To validate the instruction and compliance rules for the

organizational structure, function and promotion of

CSR Committee, CTCI has passed the "CSR Promotion

and CSR Report Publication Procedures" in November

2009 and followed Global Reporting Initiative (GRI) G4

version Guidelines and AA1000 Assurance Standards

and principles. CTCI also considers the following two

important indicators to execute and disclose the

materiality issues of the company through systematic

identification.

1. Investigate on stakeholders to validate the materiality

issues of concern in addition to paying attention

according to the level of concern by stakeholders as

high, medium and low level.

2. Investigate al l depar tment representatives to

understand the representatives' view on the impact

brought by various materiality issues and thereby

determine the immediate or potential impact level of

different issues on the company as high, medium or

low.

Evaluation and Response to Stakeholders and Materiality Issues

Identify stakeholders and collect all issues of concern

Identify materiality issues and scope

Prioritize issues and responsible units

list as annual work objectives

Execute, trace and assess

Respond to materiality issues

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Apart from considering G4 indicator, CTCI also takes

consideration of the characteristics and the engineering

industry to issue open questionnaire at CSR website and

CSR working group members through comprehensive

thinking and collect the materiality issues closely

related to CTCI. There is still room for improvement in

terms of collection method and process and with the

exception of G4 indicator, currently there are no other

materiality issued related to the company industry. In

the future, CTCI will continue to collect relevant data

through various channel and methods in response to the

industry characteristics and comprehensive extension of

materiality issues.

The implementation of effective communication with

the stakeholders is the basic element for fulfilling the

corporate social responsibility. The identification with the

stakeholders will help understand the conversation and

meeting the expectation and instruments to promote the

corporate recognition of relevant issues and solutions. In

2014, we re-reviewed and discussed the 46 materiality

issues and divided them into four items of "operation

and governance, 12 items of "environmental protection",

and 30 items of "social participation," as shown below.

The corresponding G4 standard boundaries (within and

outside organization) is listed in the table below. Please

refer to Attachment 1 for the detailed Disclosure Status in

Correspondence to GRI G4.0 Guideline.

Categories Issue Titles

Operation and governance (4 items)

economic performance(1)、market presence(2)、indirect economic impact(3)、procurement practice(4)

Environmental protection (12 items)

materials(5)、energy(6)、water(7)、biodiversity(8)、emissions(9)、effluents and wastes(10)、product and services(11)、environmental compliance(12)、transport(13)、overall(14)、supplier environment assessment(15)、environmental grievance mechanism(16)

Social participation (30 items)

employment(17)、labor/management relations(18)、occupational health and safety(19)、training and education(20)、diversity and equal opportunity(21)、equal remuneration for women and men(22)、supplier assessment for labor practice(23)、labor practice grievance mechanism(24)、investment(25)、non-discrimination(26)、freedom of association and collective bargaining(27)、child labor(28)、force and compulsory labor(29)、security practices(30)、indigenous rights(31)、assessment(32)、supplier human rights evaluation (33)、human rights problems complaint mechanism(34)、local community (35)、anti-corruption(36)、public policy(37)、anti-competitive behavior(38)、social compliance(39)、supplier assessment for impact on society (40)、grievance mechanism for impact on society(41)、customer health and safety(42)、product and service labeling(43)、marketing communications(44)、customer privacy(45)、product responsibility compliance(46)

Note: For reading comprehension, the number inside the parenthesis shall correspond with the high, medium and low level in "2014 CSR Report Materiality Issues Matrix Chart

Materiality Issues in 2014

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Stakeholders Communication and Responses

Stakeholders Communication Method Communication Frequency

(Implementation Performance)

Employees Labor-management meeting Held quarterly

Hight management seminar Held quarterly

Labor Safety and Health Committee meeting

Held quarterly

Hotlines and dedicated e-mails Continuous feedback from employees

Proposal incentive instructions A total of 342 proposals as of the end of 2014

CTCI Monthly 425 issues have been published as of the end of 2014, each publishing volume is 800 copies. Additionally electronic version is published for energy saving and carbon reduction.

Labor Welfare Committee Anytime

Shareholders Shareholders meeting Held every year

Corporation investor conference Held twice a year

Overseas corporation investor conference /investors conference

From time to time

Company website establishes "Investor Relations"

Continuous opening for shareholders to acquire company information

Taking initiative to visit the top ten corporate shareholders

Implemented each year

Telephone, fax, e-mail, website Continuous opening for shareholders to respond with comments

Community residents

Assisting local community groups to hold large cultural and charity events

Implemented each year

Telephone, fax, email, website Continuous opening for community residents to respond with comments

Supplier/sub-contractors

Supplier appraisal Upon completion of contract execution for each project

Factory visit Executed according to annual plan and actual needs

Telephone, fax, e-mail, website Continuous opening for supplier/sub-contractor to respond with opinions

Customers Customer satisfaction survey Once every half year

Telephone, fax, e-mail Continuous opening for customers to respond with opinion

Visits Any time

Government agencies

Compliance with relevant laws and regulations, clauses

Ongoing

Association and society consensus and expression

When necessary

Continuous opening to receive guidance from government agencies

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The above analysis process emphasizes the 46 materiality issues in 2014 and is classified into 5 highly materiality issues, 6

medium materiality issues and 35 low materiality issues after evaluation by the stakeholders and corporate department

work representatives. The report shall give feedback on the three dimensions, namely "management and governance,"

"environmental protection" and "social participation" with the corresponding chapters shown in the following table:

High and Medium Materiality Issues Corresponding to the GRI G4 Specific Standard Disclosure Indicator Instruction and the Management Guidelines

Order High /Medium

Materiality Issues GRI G4

Indicators Chapters Responding to Management Guidelines

1 Environmental compliance

EN29 Social Participation/Building harmonious partnership/Building safe work environment

2 Economic performance EC1-EC3 Operation and Governance/finance (refer to the corporate quarterly financial report or annual financial report for more information) Operation and Governance/future prospects Social Participation/Build health and happy work environment/Employee care/activate association activities and bring each other closer

3 Occupational health and safety

LA5-LA8 Social Participation/Build friendly and harmonious partnership/Building safe work environment/Stringent management of HSE systemSocial Participation/Build healthy and happy work environment/Employee care/Sound communication channel to understand what employees are thinking

4 Market presence EC5-EC6 Social Participation/Build healthy and happy work environment/Employee care/Fair and reasonable salary and welfare

5 Social compliance SO8 Social Participation/Build healthy and happy work environment/Employee careSocial Participation/Build friendly and harmonious partnership/Building safe work environment/Stringent management of HSE system

6 Product responsibility compliance

PR9 Special report/ CPC Talin #10 SRU Sulfur Recovery Plant EPC ProjectEnvironmental Protection /Implementation of green engineering performanceEnvironment Protection/Transform waste into resource

7 Training and education LA9-LA11 Social Participation/Building healthy and happy work environment/Fostering talent

8 Product and services EN27-EN28 Special report/CPC Talin #10 SRU Sulfur Recovery Plant EPC ProjectEnvironmental Protection/Implementation of green engineering performanceEnvironmental Protection / Build energy-saving and carbon-reduction office environmentEnvironmental Protection/Transform waste into resource

9 Labor/management relations

LA4 Social Participation/Building healthy and happy work environment/Employee care/ Sound communication channel to understand what employees are thinking

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Order High /Medium

Materiality Issues GRI G4

Indicators Chapters Responding to Management Guidelines

10 Procurement practice EC9 Social Participation/ Building friendly and harmonious partnership / Providing clients with outstanding engineering quality / Systematic supply- chain with sustainable management

11 Local community SO1, SO2 Social Participation/ Professional participation and social services

In view of the five highly materiality issues, the economic

performance and market image in the "words from

manager" and "operation governance" of this report

shows that the operating performance of CTCI in 2014

and the future strategy orientation and vision. As for

environmental compliance, the special report shows

how CTCI is committed in assisting the customers build

green SRU with less pollution while the environmental

protection shows how CTCI starts with the green

engineering core technology to provide customers with

2014 CSR Report Materiality Issues Matrix Chart

level of immediate or potential impact to the company

Concern with stakeholders

Denoting low level of materiality issues Denoting medium level of materiality issues Denoting high level of materiality issues

economic and feasible green energy saving solutions

from the perspective in design, purchase, construction,

operation and charged factory and the full life cycle.

With regards to social compliance, the report portrays

in the "social participation " on how CTCI builds and

establ ishes safety and health work environment

through various technologies, system and policies for

employees, customers and suppliers in demand/supply

chain, attaining the multiple-win situation among CTCI,

partners, stakeholders and social environment.

High (6.3≦ Y≦ 8) 一一

Environmental compliance(12)Economic performance(1)Occupational health and safety(19)Market presence(2)Social compliance(39)

Medium (2.7<Y＜ 6.3) Local community (35)

Product responsibility compliance(46)Training and education(20)Product and service(11)Labor/management relations(18)Procurement practice(4)

Low(0≦ Y≦ 2.7)

(3)、(5)、(6)、(7)、(8)、(13)、(14)、(16)、(17)、(24)、(25)、(26)、(27)、(28)、(29)、(30)、(31)、(32)、(34)、(37)、(38)、(40)、(41)、(42)

(9)、(10)、(15)、(21)、(22)、(23)、(33)、(36)、(43)、(44)、(45)

Low (1≦ X<1.66)Medium

(1.66≦ X≦ 2.33)High (2.33＜ X≦ 3)

The parenthesis behind each indicator corresponds with the name of issues on the "Materiality issues in 2014."

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CSR Promotion

T o st rengthen the cor porate emphas i s and

contr ibut ion to env i ronmenta l protec t ion ,

CTCI expanded and established the "Environmental

Protection" Working group in 2013, where the Innovation

R&D Center served as the team supervision in charge

of strengthening and integrating corporate execution

environment protection related measures in addition to

routinely calling for team meeting for outcome tracing.

Starting 2013, the Innovation R&D Center has counted

the ongoing projects and under the conformance to

contract philosophy and agreement of customers,

CTCI agrees to provide and suggest the adoption of

concepts in green engineering in an attempt to lead

the customers to contribute for the earth. By 2014, the

CTCI further includes engineering procurement and

construction techniques into the sustainable concept

of green engineering from the engineering design and

2011 CSR Report instruction

changed from G3 to G3.1

2010 Upgraded CST report level to Board of the

Directors, where “Quality and Safety and Health

Environment Committee” was renamed to “Quality

Safety and Health and Corporate Social Responsibil-

ity Committees” in charge of reviewing and

monitoring the company’s CSR related operations.

2014 CSR report

instruction changed

from G3.1 to G4.0.

2009 Approved “CSR promotion and report

publication rules” which are planned by the

Committee and executed by all departments

in cooperation to improve corporate image,

strive for customer recognition and establish

partnership of internal harmony.

2008 2009 2010 2011 2013

2013 Previous “Supply-Demand Chain Relation” working group

expanded in function and renamed to “Environmental Protection”

Working group.

“CTCI Corporate Social Responsibility Practice Conducts”

approved by the Board of the Directors with implementation of

executing various CSR related behaviors.

2014

2008 Established “CSR Committee” to

summarize the planning, promotion,

execution, data compilation, review

and improvement of CSR work.

the quotation stage, in collaboration with customers

to implement CSR philosophy to meet the customer's

project budgets.,

Moreover, the environmental protection working group

shall list CSR related works as the Key Performance

Indicator (KPI) of all business divisions to assist the

projects and divisions with development of specific

objectives in environmental protection and implemented

them actually. Consequently, CTCI will prepare the CSR

report according to the organizational characteristics

and functions in addition to presenting the specific

validity of all aspects and contribution to society through

more integral and systematics performance, thereby

to highlight CTCI's image in fulfilling corporate social

responsibility.

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To strengthen the philosophy of corporate sustainability

and the "Corporate Governance Best Practice Principles

for TWSE/GTSM Listed Companies" implemented by the

Taiwan Security Exchange Center and Taipei Exchange,

CTCI has submitted to the Board of Directors in 2013

for the approval of "CTCI Corporate Governance Best

Practice Principles " and submitted report to the Board

of the Directors for the revision of the principles in

December 2014, in addition to following this principles

for the implementation of various CSR-related conducts,

attaining the balance and sustainability in economy,

society and environment, as well as other corporate

social responsibilities (please review from CTCI's website

at http://www.ctci.com.tw/www/www/CTCI2014/CSR/

policy.html for full text).

As a corporate citizen, we believe that the promotion

of CSR will create better competitiveness. Hence CTCI

upholds to corporate mission in "To satisfy our customers

with the optimized engineering services" by emphasizing

on the pursuit of excellence in profession in addition

to giving feedback to the society through project

profession, upgrading the overall project environment

and implementing corporate social responsibility.

Board of Directors

Review and supervision

RemunerationCommittee

CSR Committee

CSR Working Group

Operation & Governance Group Social Participation Group

AGS Dept.

AuditingCommittee

CorporateGovernanceCommittee

Environmental Protection Group

Executive Departments for Materiality Issues

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To fulfill corporate social responsibilities with due faith has

been a target of operation for our company; aside from

pursuing the largest profits for our shareholders, we aim

to attend at the same time the rights of the stakeholders,

conform to the ethical codes considered the social norms,

and promote energy saving and carbon reduction to slow

the pace of climate change. It is hoped that with such actions

we can construct a society of justice and fairness jointly

with the stakeholders while creating a sustainable living

environment. Thereby, the implementation directives of CSR

promoted by CTCI Corporation include the three aspects,

"Operation and Governance," "Environmental Protection,"

and "Social Participation," committing to developing a

robust organizational structure, realizing the vision of green

engineering with due diligence, and performing CSR with

due faith.

Developing a Robust Organizational

Structure

Steady growth and sustainable development are the

basic requirements for performing CSR. Without them,

no enterprise is capable of promoting social welfare and

environmental protection. For this reason, besides legal

compliance, we will continue to develop an effective internal

control system, maintain information security, carry out

risk management, ensure accessibility and transparency

in information disclosure, uphold business self-discipline,

and optimize organizational structure,while at the same

time provide employees with steady career development,

shareholders with stable long-term profits, and clients with

satisfactory project service quality.

Realizing the Vision of Green Engineering

with Due Diligence

C TCI has long been emphasizing the technological

development for green engineering, and dedicating efforts

to minimize pollution, and lower the impacts made to human

health and the environment during the whole life cycle of

CSR Policy Statement

Realizing the Vision of Green Engineering with Due Diligence

Devel

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Performing CSR w

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President

project executions, including engineering (E), procurement

(P), construction (C), commissioning (K), operation and

maintenance after plant turnover to the owners. All the

procedures are taken with approaches that are economical

and viable with an aim to bring innovation and enhance the

green competitiveness of the industry to create a multi-win

scenario among CTCI, cooperative partners, stakeholders,

and the social environments, and to contribute its share to

the creation of a sustainable eco environment.

Performing CSR with Due Faith

"Cultivating engineering talent for the enhacement of

engineering service quality"has been the corporate mission

of CTCI since its inception, and it is the most straightforward

method to requite society. The Company has been in full

compliance with the labor laws, dedicated to protecting

and respecting the principles of globally recognized basic

labor rights, ensured such rights applied for all without

discrimination, and provide diversified communication

channels as well as a healthy and safe workplace for

employees. Also, we maintain good neighbor relationship

with citizens in local communities and promote social

welfare in the best way possible.

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Recognition for CSR Promotion

Under the effor ts of company managers and al l

employees, CTCI's sustainable report has been certified

by BSI and honored with "Sustainable Corporate

Governance Fulfillment Award". Moreover, we have

received multiple rewards in 2014 such as the Services

Industr y S i lver Award of the " Top 50 Corporate

Sustainability Report Award," "Growth through Innovation

Awards" and "Transparency and Integrity Awards."

presented by Taiwan Institute for Sustainable Energy,

Aside from collecting the CTCI Corporate Sustainability

Report in the "Taiwan Corporate Sustainability Report

Awards Annual Review," TAISE also presented it in the

"Documenting Taiwan's CSR" section on its website; it was

even recommended to the website of Global Reporting

Initiative (GRI) for reporting and promotion. In this way,

the achievement of CSR development acquired by CTCI

was within global reach; enterprises and stakeholders all

over the world could check relevant information online. ,

CTCI has also been ranked by CommonWealth Magazine

as the 26th of "Top 50 for Excellence in Corporate Social

Responsibilities" in 2014,the 29th in the Top 650 Service

Enterprises amid Taiwan's 2013 Top 2000 Enterprises and

retaining Top 1 in the contractor sector for years in a row,

and the 43rd for Top 50 Most Profitable Companies. All

in all, these honors proved that the efforts made by CTCI

have gradually won recognition from various sectors.

◎ Award ceremony for the 2014 Information Disclosure and Transparency Rankings lunched by TWSE and Taipei Exchange.

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CTCI is a role model in information disclosure and

has participated in the "Information Disclosure and

Transparency Rankings" co-sponsored by the Taiwan

Stock Exchange (TWSE) and GreTai Securities Market

since 2004 and has been evaluated as public listing

company with more transparent information disclosure.

The company has been rated a Grade A enterprise since

the evaluation system reformation in 2006. In 2010 and

2011, we further acquired the A+ grade assessment;

from 2012 to 2014, we continuously acquired the highest

A++ grade for 3 years in a row, which supports CTCI's

practice in rigid corporate governance and information

transparency policy. It is apparent that integrity has long

been the conducts complied by CTCI because we believe

that only by upholding the principles of integrity will we

win the trust of employees, shareholders, customers, and

mass public to establish the most valuable value and the

competitive advantage of enterprise.

We will apply the three fields of CSR, including "Operation

and Governance, "Environmental Protection" and "Social

Participation" as the structure of the report to disclose

information from three dimensions in addition to

introducing the actual cases of the company in terms of

efforts and performance in CSR through special reporting.

◎ CTCI has sponsored the "Shilin Cultural Festival: Scenic Zhishan" for 4 years in a row to promote local cultural development.

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Petroleum is a daily essential that affects the economy and industrial

development. Not being an oil producing country, Taiwan needs to

import crude oil from overseas and refines it to remove the sulfur

contents and impurities. This issue of CSR Report features the "CPC Talin

#10 SRU Sulfur Recovery Plant EPC Project, a Green SRU that Enhances

Industrial Competitiveness and Reduces Pollution" to describe how

CTCI assists project owners in building the SRU with energy saving,

carbon reduction, and new technology as well as emerging techniques

to abate and prevent environmental pollution. The project also

reduces the impact brought by SRU in the refinement of crude oil,

implementing green engineering and philosophy of green SRU.

Special Report

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CPC Talin #10 SRU Sulfur Recovery Plant EPC Project, A Green SRU that Enhances Industrial Competitiveness and Reduces Pollution

P etroleum is a daily essential that affects the

economy and industrial development. Not being an

oil producing country, Taiwan needs to import crude oil

from overseas and refines it to remove the sulfur contents

and impurities. This issue of CSR Report features the

"CPC Talin #10 SRU Sulfur Recovery Plant EPC Project, a

Green SRU that Enhances Industrial Competitiveness and

Reduces Pollution" to describe how CTCI assists project

owners in building the SRU with energy saving, carbon

reduction, and new technology as well as emerging

techniques to abate and prevent environmental

pollution. The project also reduces the impact brought by

SRU in the refinement of crude oil, implementing green

engineering and philosophy of green SRU.

Tal in #10 SRU Sulfur Recover y Plant EPC Project

(hereinafter referred to as the #10 SRU)" not only the

plant functions as a role for environmental protection,

energy saving and reducing environmental impact

caused by refining crude oil but the #10 SRU is an annual

benchmarking project that was completed 48 days ahead

of schedule for planned mechanical completion. The

project was awarded with the 14th Public Construction

Golden Quality Awards by the Public Construction

Commission, Executive Yuan. It is commonly known that

the most essential criteria to a successful project is "to

be delivered on-time and to specification," particularly

for the large construction projects executed by CTCI

that involve broad coverage, considerable complexity

and tangled relationship among the customer to the

supplier and subcontractors is expected. On-time

completion is difficult, not to mention early completion

by 48 days ahead of schedule. Therefore, with this article,

we will introduce the energy-saving process, the green

engineering concept, and the construction management

developed during #10 SRU EPC project, and how CTCI

built up the mutual trust, partnership, and friendship with

the customers, suppliers and subcontractors.

Adopting Energy-Saving Process to Increase SRU Efficiency

The #10 SRU belongs to the "M9901 CPC Talin #10 Sulfur

Recovery Plant Investment Project" approved by the

Executive Yuan with an investment of NTD6.6 billion to

build the two-trained sulfur recovery facility consisting of

one SRU plant with daily production of 250 metric tons

of liquid sulfur, auxiliary facilities and OSBL pipe line work.

SRU mainly processes the hydrogen sulfide and foul acid

gas coming from heavy oil conversion and gasoline/

diesel residue hydro-desulfurization units to improve the

gasoline/diesel and fuel oil quality, abating air pollution

and moreover securing the domestic share in oil market.

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Social ParticipationThird Party Verification

Statement

CTCI #10 SRU Project Manager Shi-Wei Chung mentioned:

"crude oil, from a varieties of sources, contains plenty

sulfur contents. During refining, acid water and hydrogen

sulfide will become an issue just like kitchen waste, which

long ago could not be treated and resulted in adverse

impact to our environment. After SRU technologies

appeared, acid water and hydrogen sulfide could be

processed and recovered. Stripped water and sulfur

would be produced. Stripped water could be further

treated and reused, as well as sulfur could be used to

make sulfuric acid and sold to the market. Hence, the SRU

is a so-called green or environmental friendly plant.

The CPC #10 SRU applied the energy-saving process

with innovation approach for design. For sulfur recovery

area and exhaust pollution area, Jacob's SUPERCLAUS

sulfur recovery technology is utilized. The advanced

Claus process is developed by Jacobs and extended from

the traditional Claus process with adding a selective

oxidization reaction section to oxide residual hydrogen

sulfide (H2S) to elementary sulfur, and the advanced

process will improve the sulfur recovery rate up to 99.1%.

MECS owned and registered DynaWave® exhaust gas

scrubbing technology is used for the tail gas treatment

of the SRU. In the scrubber inlet barrel two reverse water

injection flows to produce bubble and froth zone for

absorbing sulfur dioxide within the tail gas.

◎ 3D Computer Graphics Model

Oxygen enriched operation at the #10 SRU is the first

case for sulfur recovery process with enriched oxygen

combustion of Taiwan refinery industry. The vacuum

pressure swing absorbing technology (VPSA) for oxygen

generation is used to produce 92% oxygen. With oxygen

enrichment technology will increase combustion

efficiency and process more acid gas with the same size

of equipment. 92% oxygen is mixed with combustion

air before combustion air is introduced into the furnace.

The hydrogen sulfide recovery rate is improved from 95%

to 99.1%, while the productivity is increased by 37.8%.

Therefore, based on daily 148 tons of sulfur production

per train, one train production will be expanded to 204

tons per day with reducing the fuel consumption for

power generation and producing steam. Hence, it is

estimated to save about 6,010 MM kcal each year.

Various Energy-Saving Designs and Model of Green Engineering

Apart from energy saving process technology, this SRU

plant also adopts electrical, piping and instrumentation

control design with injection of environmental protection

concepts to progress towards green engineering.

With regards to rotary equipment, process pumps

adopt mechanical double-sealed design to reduce the

emission of VOCs (volatile organic compounds). The 9 air

condensers adopt VFD motor design with fans rotating

according to the climate. Based on the installation of VFD

equipment capacity of 134 kW and energy saving effect

of 50%, it is estimated that about 587,000 kWh can be

saved each year.

The design of transformer adopts 2 three winding

transformer high-efficiency silicon steel stator core

4000/2000/2000 kVA oil-type distribution transformers.

Calculating on energy saving efficiency with 0.17%, it is

estimated that about 60,736 kWh of energy consumption

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can be saved each year while carbon dioxide emission

can be reduced by 31,704 kg (the number of carbon

dioxide emission calculated is estimated according to

the 2013 electricity emission coefficient = 0.522 kg of

CO2e announced by the Bureau of Energy, Ministry of

Economic Affairs).

With regards to lighting equipment design, the average

lighting of #10 SRU adopts high-pressure sodium light

(HPS) while the emergency lighting adopts power-saving

PL light. The HPS lighting system for the tower area adopt

stratified control design according to SRU plant safety,

operation requirement and consideration of energy-

saving at night. Except for the operating platforms of

towers on the ground floor and top floor that adopt

photovoltaic control, all remaining operating platform

lighting system will be installed with control switch on

the ground and turned on when operated to effectively

save power consumption. Hence, this lighting design is

estimated to accomplish energy-consumption benefits

of 77,280 kWh each year while the annual reduction of

carbon dioxide emission is 40,340kg (*based on 0.522 kg

of CO2e/Wh).

Moreover, the SRU plant adopts closed type heat transfer

circulation system and steam reuse design to reduce

water consumption and estimated to save about 76,000

cubic meters each year.

As for the piping planning and instrument equipment

design, the #10 SRU utilizes site allocation to adopt mirror

arrangement of sulfur recovery unit and tail gas treatment

unit with one stack to save equipment quantity,

construction and maintenance costs while increasing the

operational convenience. The economic plant layout will

save about 50 meters in the 40-inch carbon steel pipes,

11,825kg of pipes, related pipe supports, steel structures

and foundation. Moreover, the fugitive emission valve

design reduces the fugitive emission of VOCs (volatile

organic compounds).

◎Mirror arrangement with use of one common stack

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With regards to construction technology, CTCI adopts steel structure modularization hoisting of tail gas scrapping tower

and stack to achieve energy saving and carbon reduction and assembles 3D steel structure modules on the ground in

advance for construction work over 36 meters or above and 2D steel structure modules for those operated in 36 meters.

Modularization will reduce the high risk operation with elevated screw bolts and effectively shorten the installation

schedule at site.

Moreover, with the precast for steel bar concrete structure, most of the conduit, ditch, manhole, and storage pits as well

as other RC structure will undergo precast outside the field and reform the past regional construction operation while

processing various operations at the same time that will substantially reduce site operation time and climate impact.

◎ Steel Structure Modularization Hoisting Techniques Diagram

◎ Steel structure plane module hoisting

◎ Precast outside of conduit and ditch

◎ Steel structure ground pre-assembly module

◎ Complete conduit precast before transporting to site for installation

◎ Steel structure 3D module hoisting

◎ Complete manhole precast and transport to site for installation

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It is worth mentioning that #10 SRU was the first project

utilizing mobile Apps monitoring management cloud

supporting system established by CTCI projects to use

mobile technology devices at the site. For the use of

Tablet PC touch panel function, the monitoring supervisor

does not need to carry thick drawing and documents

but only need to input data with photo taking, voice

recording and film; even when staying offline, we can

monitor audit records without being affected. Information

will be updated after connecting to the office, thereby

reducing the paper use with simplified process and real-

time operation to substantially improve convenience and

efficiency of site monitoring management operation.

Strike a Balance between the Development and Environment for Pollution Control

The process of site construction will inevitably impact

the environment; however, with proper prevention and

surveillance system established, the impact may be

minimized.

For #10 SRU plant, the pressure release control valve

adopts section-based discharge design to reduce high-

pressure discharge. The regional oil pollution water

collection system adopts pipe and conduit separation

design in addition to collecting the oil pollution water

separation facilities of site waste water and closed waste

oil recycling system by adding cover to reduce the

fugitive emission from VOCs (volatile organic compounds).

With regards to noise isolation, the compressor room,

which most likely to create noises, adopts insulation pad

to prevent noise, whereas the pipes of 12 pumps and 4

ejectors are also covered by noise insulation blanket. The

inlet and exhaust port of the 8 compressors and 4 blowers

are also installed with silencers and the main unit/pipe

noise insulation blanket to reduce noises.

Moreover, the project selects equipment in conformance

to energy saving and carbon reduction to reduce the

discharge rate of carbon dioxide. For example, the fuel gas

waste heat was recovered from the waste heat boiler in

Unit 1300 and 1350 to produce 5,220 kg (kg/hr) per hour

of HP stream while reducing fuel gas by 3,240,000 cubic

meters each year and carbon dioxide by 7,000 metric

tons. The sulfur condenser recycles waste heat to produce

9,900 kg (kg/hr) per hour of LP steam, reducing fuel gas by

6,040,000 cubic meters each year and carbon dioxide by

about 13,000 metric ton, resulting in a total of reduction

in carbon dioxide emission of 20,000 metric tons.

The fuel gas waste heat was recovered from the waste

heat boiler in Unit 1400 and 1450, recycling and reusing

the remaining heat through exchange heater to reduce

fuel gas by 1,400,000 cubic meters and carbon dioxide by

3,000 metric tons.

In summary of the above regional energy saving design,

a total of carbon dioxide emission of 23,000 metric

tons were reduced, saving the overall site operation by

6,990,000 (kW), which significantly increases the green

energy saving effectiveness of the new site. Additionally,

for the design of VOCs valve, the site also adopts fugitive

emission valve design to project a reduction of 90% or

higher in fugitive emission for VOCs.

◎ CTCI adopts one common stack in #10 SRU plant to reduce required equipment, save construction and maintenance cost, and enhance operational convenience.

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During the construction of #10 SRU, CTCI also routinely

prevents pollution in water, noise, vibration and wastes. For

example, installing Hydrogen sulfide (H2S）detectors will

assure the safety and the installation of fences, cover cloth

to prevent scattering during the piling, rusting, blasting and

painting work in addition to maintaining the air quality.

With regards to noise prevention, CTCI adopts implant-

type piling pre-drilled to minimize the vibration and

noises at nighttime construction. In terms of ground

surface water protection, the entrance is installed with

a washing station that includes the sewage water

sedimentation and intercepting ditch as well as gravel

sediment area, the vehicles responsible for moving shall

also adopt covered sealing design to prevent waste

water overspill or scattering to the ground. Apart from

designing the proper construction exit, vehicles accessing

the site shall avoid interfering the traffic inside the region

but also overload and carrying articles falling, in addition

to avoiding the traffic peak hours and affecting the traffic

and life of residents.

With regards to waste treatment, open wastes must be

covered to avoid rainwater contamination. The recycled

and un-recycled wastes shall be stored separately while the

packaging wood, waste metal and waste cables shall be

recycled before reuse. The soil will be properly used in the

field or changed to transporting legitimate dumping site.

Integration and Communication Serve as the Key to Early Mechanical Completion

The construction of #10 SRU Plant not only progresses

towards green engineering while the early mechanical

completion in 48 days ahead of schedule is something

enthusiastically discussed . The following factors are

concluded for the reason.

Consistency with Customer Objectives

CTCI Project Manager Shi-Wei Chung expressed: "When I

first assigned to the project, I have already known CPC's

expectation towards early completion. #10 SRU is tactful

unit that can process crude oil with high sulfur contents

and early completion not only will return customer

investment, initiate green equipment but will also reduce

the constraint on source of crude oil, increase operational

flexibility of crude oil feed, and reduce the purchase costs

for crude oil with substantial benefits to the industry

development."

Based on the same objectives plus the past experience

in contracting CPC EPC projects, CTCI highly familiar with

the standards for public construction and therefore more

tacit understanding. Taiwan CPC Corporation Project &

Construction Division, Chief of No.1 Talin Construction

Office Chih-Chin Ho observed that: " the CTCI top

management and project managers have injected many

efforts and resources on the project while CTCI senior

managers also patrol the premise from time to time to

help solve problems. Hence the project execution is

considerably smooth in general.

Grasping Prior Project Schedule

Chief Ho further expressed: "At the beginning we have

two schedules, one is the schedule developed according

to the contract and the other is the schedule for early

completion. Basically we will grasp the prior project time

place early completion as priority objectives in progress

because there will always be unknown factors in late

project. CTCI has helped us on this area and knows our

requirement for quality and progress, so we could move

◎ The project team of CPC #10 SRU plant, proprietor and CTCI staff have developed a partnership of mutual trust.

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forward in the objective of early completion with the

help from each other."

"CPC #10 SRU Project Manager Ying-Chih Hu added: "CTCI

has put a lot of efforts in procurement work during the

early stage of the project by purchasing all equipment

and devices in advance. Once the purchase process goes

smoothly and the equipment and material are delivered

to the site on time, the construction process will naturally

become smooth."

Sound Integration and Communication

Moreover, Project Manager Ho also suggested that the

strong mobilization and integration ability of CTCI was also

the key success factor to project mechanical completion

in 48 days ahead of schedule. The so-called integration not

only emphasizes on the cooperation and communication

with customers but also the control over project integrated

complexity when facing the mobilization and coordination

with the supplier and contractor.

For this reason, CPC Chief Ho suggested: "It is inevitable

for customers and suppliers to argue during the project

execution period but CTCI Project Manager Chung

has good communication skills, who can listen and

understand our demand, in addition to attempting to

break through and solve the problems. For example, the

progress of civil work was delayed in the beginning and so

CTCI immediately found out the battlement and shifted

some structure for external execution and assembly

followed by transporting to the site for installation upon

completion. Both approaches are conducted to ensure

on-time progress while customers can quite accept such

proper arrangement and processing.

CTCI Project Manager Chung also listens, understand, and

solve problems when facing suppliers and contractors.

It often encounters many situations at site with great

variance; particularly human factor was the most difficult

to be controlled. To complete on-time (and even early),

how to control site and workers become significantly

important, particularly when certain progress of the

schedule needs to be achieved and hence caring

for people's mental ity and emotion, and clear ly

comprehending the difficulties will test the wisdom and

patience of project managers. CPC Project Manager Hu

observed that: "CTCI has strong mobilization and even

if the contractor shows some deficiency, CTCI can still

introduce other resources and manpower to catch up

and surpass the original progress with remarkable project

execution capacity."

In contrary, CTCI Project Manager Chung believed that

facing and solving problems will avoid the continuous

diffusion that affects the final progress. It is inevitable for

people to get into conflicts when faced with tremendous

pressure from scheduling rushing, "but I will ask the

colleagues to discover the key problems, eliminate the

discretion and solve problems. Everyone still units in

team and are good partners working together when

leaving the meeting room.

CTCI Project Site Manager Yang recalled: "I remember

some time ago all workers were reluctant to work

overtime mainly because of the discrepancy over the

payroll release between the contractors and workers.

Manager Chung has specifically communicated with the

contractor to reach win-win situation. Eventually, the case

was resolved smoothly." This proactive and pragmatic

attitude have helped CTCI to receive the trust and

approval from customers while forming a partnership

before the case could be completed successfully and

attain the objective of early completion.

◎ Apart from bringing employment opportunities for the local community, the #10 SRU plant is also proactive in participating in various community care activities.

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Humanistic and Thoughtful Management

Moreover, the project values safety and environmental

health by building a quality work environment which is

the key factor appreciated by all team members, driving

them to identify with the goal for early completion and

achieve it.

For example, workers used to bring bottled water to

the premise site and have creased created much waste.

To reduce garbage waste and provide better-quality

water quality to the workers, reverse osmosis water

is provided all over the premise site with the supply

of unlimited brown-sugar drinks in the summer and

ginger tea in the winter to warm people up. Moreover,

there are also Medical Room and stationed nurses with

routine organization of self-rescue and other health

education related courses. Due to the increasing number

of elder workers at the site, manager Chung requests the

stationed nurses to patrol the site routinely and ask the

employees to take blood pressure routinely. Manager

Chung signed with feelings: "What the workers demand

is very simple and they only need someone to listen to

their opinions and even complaints, someone who will

remove difficulties from their work and sincerely lead

them to work with one common goal. Even a cup of

hot ginger tea provided for overtime work will comfort

them." Such compassion of employees and mentality

of helping others not only strengthen the cohesion

of project employees and workers at the site but also

forms goodwill-based interaction and positive energy to

facilitate the completion of project so that everyone will

attain the goal with joy and a sense of achievement.

Promoting Friendly Community with Co-Existence and Co-Prosperity

The construction of the #10 SRU not only cooperates

with the national policy on petrochemical industry

development to effectively improve the quality of

domestic gasoline, diesel and fuel oil but also reduces air

pollution, securing CPC's market share in the domestic

oil market. During the execution of the project, CTCI also

substantially commissioned the domestic supplier for the

manufacturing of static equipment to improve the quality

control standards of the manufacturer in conformance to

international standards while on the other hand increase

considerable amount of employment opportunities.

Statistics show that about 418 local residents were

employed during the construction period while local

vacant land, civil houses and warehouses were also

rented, increasing the local proceeds and activating the

local development.

Moreover, in spite that the #10 SRU site is located in

the industrial park and is some distance away from the

residential area with dense population, CTCI upholds

the philosophy of building friendly community by

proactively participating in the activities held by different

areas such as sponsoring the local communities, schools,

and activities held by temples, providing local residents

with pensions, holiday benefits, and winter sponsorships.

CTCI also routinely clean and surrounding roads to

maintain friendly relationship with the environment and

local residents while promoting the national industrial

construction and economic development, attaining the

purpose of co-existence and co-prosperity.

◎ CTCI particularly pays a�ention to the physical and mental health as well as the safety of construction workers. Registered nurses are appointed to project sites to take care of the health of employees and suppliers

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CTCI has been founded for nearly 36 years since 1979. In the past few decades, CTCI has envisioned to "become a leading global provider of engineering services and innovative technologies" and after years of hard work, this objective is no longer remote and hence CTCI Corporation adjusted the vision into becoming the "most reliable global engineering service provider" by giving the group a brand-new mission as: "to satisfy our customers with the optimized engineering services" in addition to internalizing this concept into each CTCI member through various communication channels.

At the same t ime we uphold to the philosophy of " fulf i l l ing corporate social responsibility" through the corporate principles in "professionalism, integrity, teamwork, and innovation" in the midst of the varying global economies and social situations, thereby progressing towards sustainability firmly.

Hence, the report will start with the "corporate overview" and then describe CTCI's managerial strategies and achievement and vision through "corporate governance" and "financial disclosure," and then finally through "future prospects" to expound CTCI Group's expectation and objectives for future development.


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Company Overview

T he founding of CTCI Corporation can be dated back

to the 1950s when Taiwan's social-economy was on

the thriving development but the domestic engineering

technology could not catch up with the pace of

economy take-off and many infrastructure projects had

to be outsoucred to foreign companies.

To make up for Taiwan's gap in engineering talents,

a group of enthusiasts joined together in 1959 and

established the C TCI Foundation (shor t for C TCI

Foundation) in attempt to incubate domestic engineers

through sound counsel ing and education while

concurrently stay in step with or even lead Taiwan's

economic development.

Following the improvement in engineering technology

and the expansion of service scope in order to cooperate

and gear itself to international standards, the Central

Investment Holding (B.V.I.) Co., Ltd. and China Industrial

Development Bank entered a joint venture and invested

NT100 million in CTCI Corporation in 1979, while

shifting the relatively simple engineering planning

and design to procurement, fabrication, construction,

supervision, and plant commissioning operations, and

even comprehensive top-down engineering service

from upstream to downstream. In 1993, CTCI went

public and became the first publicly listed engineering

service company while dominating as the leader among

domestic EPC turnkey engineering companies.

After building solid corporate foundation, CTCI started

extending its business to the overseas to undertake

not only the signif icant global oi l ref ining,

petrochemical, and chemical engineering

design and construction but also branched out into

fields of electric power, steel, transportation, traffic,

incinerator, public works, environmental engineering and

others , covering a wide and diverse range of services,

and successfully ventured into the international market.

Due to the increasingly severe

g l o b a l w a r m i n g s i t u a t i o n

i n r e c e n t y e a r s , i s s u e s

a n d t r e n d s r e g a r d i n g

e n v i r o n m e n t a l

p r o t e c t i o n a n d

energy saving are

gradually on the

r ise all over

the world.

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overnanceSpecial Report

Environmental

ProtectionSocial Participation

Third Party Verification Statem

ent

For engineering companies, while the construction of a

plant may assist with economic development, it could

also bring impact to the environment. To contribute

its efforts for the protection of the environment, CTCI

not only is committed in the development of energy-

saving and environmental protection engineering

technology but also lowers the pollution and damage

for the environment. CTCI also devotes in various energy

saving and environmental protection related engineering

construction. For example, the construction project

of CPC Talin #10 SRU was intended to strike a balance

between economic development and environmental

protection with engineering technology.

Additionally, due to the divergence in global economic-

social situations, such managerial strategy and integration

ability with flexibility will become the biggest challenge

for the company to sustain management. Hence,

CTCI also regards "integrated synergy management

across CTCI Group" as the new normal of cooperate

management by encouraging proactive cooperation

between the overseas and domestic subsidiaries towards

joint development. A strategic plan for sustainable

growth, "profit first and quality over quantity, is designed

to serve as the direction of all business operation units in

the coming 3 years.

Currently, there are 42 affiliated companies to CTCI

Corporation distributed all over the world with the total

number of employees reaching 7,318 (among which

there were 997 females and 6,321 males while CTCI

Corporation owns 3,270 people. As the business volume

grows, CTCI has increased its capital for many times

and the paid-in capital increased from NT$100 million

since its foundation to NT7.575 billion. The outstanding

performance met investors expectations.

A p a r t f r o m p r o a c t i v e l y e x p a n d i n g m a r k e t i n g

business, CTCI pays more attention to internal control

management. Apar t f rom receiving cer t i f icat ion

for ISO9001 :2008 qua l i t y management system,

ISO14001:2004 environmental management system,

OHSAS18001 :2007 , and CNS15506 :2011 Ta iwan

Occupational Safety and Health Management System,

CTCI was also the first engineering company to receive

ISO14001 and OHSAS 18001 simultaneously. These

achievements fully demonstrate CTCI's caution in

service quality, occupational safety, health management

and environmental protection. The results are widely

recognized by domestic and foreign customers and CTCI

will modify according to the revision of international

standards, continuing the promotion of management

system updating and authentication.

YearNumber of people

(including dispatched personnel)Sales revenue

(Unit: 100 million NTD)Output per person(Unit: million NTD)

2012 2681 348.24 12.99

2013 3,228 314.46 9.74

2014 3,270 380.60 11.64

CTCI Number of Employees / Revenue / Output per Person in the Last Three Years

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Global Network Map

CTCI, Italy

CTCI, USA

Company Name CTCI Corporation

Founding Date April 6th, 1979

Employees 3,270 (as of December 31st, 2014)

Official: 2,589 ; temporary: 185 people; Dispatched: 496

Subsidiaries 42 (14 domestic , 28 overseas, CTCI excluded)

Capital NT$7.575 billion

Revenue NT$38 billion for 2014 (Total group revenue NT$57.692 billion)

Lines of Business 1. Hydrocarbon: Gas Processing, Petroleum Refining, Petrochemical, Chemical, Terminal, Polysilicon

2. Infrastructure, Environment & Power: Infrastructure, Transportation & Communication, Power, Steel

& Nonferrous, Environmental Protection, Incineration & Energy Recovery, Water & Waste Water, Air

Pollution Control

3. Environmental resources: Investment and Development, O&M / Management of Incineration Plants,

O&M/Management of Infrastructure, Resources Collection/Recycling/Management, Renewable

Energy, Renewal and Upgrade of Mechatronics System

4. Plant Maintenance Service: Maintenance Strategy, Maintenance Planning, Maintenance Execution,

Asset Integrity Management, Overhaul Management

Comprehensive Services Feasibility Study & Planning, Project Management, Engineering, Procurement, Fabrication, Construction Plant

Commissioning, QA & HSE, Operation & Maintenance, Information Technology

Address No. 89, Sec. 6, Zhongshan N. Rd., Taipei 11155, Taiwan, R.O.C.

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Shang Ding, China

Jingding, China

CTCI Arabia, KSA

CTCI, Korea

CTCI, Qatar

CTCI, Abu Dhabi

CINDA, India

CTCI, Thailand

CTCI, Malaysia

CTCI, Singapore

CIMAS, Vietnam

CTCI, Hong Kong

SINOGAL, Macau CTCI Corporation(Taipei Headquarters)

Xiang Ding, China

Domestic:

E&C Engineering Corporation Resources Engineering Services Inc.Advanced Control & System Inc.KD Holding CorporationSino Environmental Services Corp Leading Energy CorporationHD Resources Management CorporationFortune Energy CorporationGintech-KD Energy Technology Development Co., Ltd. CTCI Chemicals CorporationCTCI Machinery CorporationYuanding Resource Co., Ltd.

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Corporate Governance

C TCI has upheld to the stable growth of organization

and philosophy of environmental sustainability

since the founding period by fulfilling the corporate

social responsibly, disclosing transparent information,

and promoting corporate governance culture with stable

growth and sustainable development, which therefore is

highly recognized by all agencies.

In 1993, CTCI first established the spokesperson system,

opening the outbound communication channel while

fully disclose the operating information in public to take

up the most basic responsibly for the shareholders and

the public. From then on, CTCI has gradually solidified

the internal corporate governance structures, established

relevant committee to function with plans and design

and then incorporated with corresponding departments

for execution, in attempt to increase the corporate

image, strive for customer recognition and even establish

harmonious partnership.

Due to its credo in integrity and efforts in addition to

implementing execution, CTCI has won the Grade-A

rating for 4 consecutive years in the "Information

Disclosure and Transparency Ranking System" co-

sponsored by the Taiwan Security Exchange Center and

Taipei Exchange. In 2010 and 2011, CTCI received the

highest rating with A+ at the time and even a grade

A++ for the last 4 years. CTCI is a role model in corporate

information disclosure.

Transparency, professionalism and sound system are

the principles of corporate governance implemented

by CTCI. The members of the Board of Directors include

13 directors (including 3 independent directors) and

the function a committee under the administration

to gradually improve the internal control system, and

information security and risk control mechanism.

Meanwhile, C TCI applies "supervision function of

strengthening Chairman" "Management quality of

advanced company," " Sound internal control system"

"implementation of risk management," implementation

of information disclosure," "Establish corporate self-

discipline regulations) strategies and build sound

corporate governance culture.

Strengthen the Supervision Function of the Board

The Board of Directors served as the highest decision-

making team of the group and designs the corporate

governance structure of the company, which not only

◎ CTCI spokesperson M. C. Hsiao chairs the 2014 Investor/Press Conference.

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is responsible for the overall operating policy but also

supervises the policy execution by senior management.

The Board of the Directors consists of 13 directors and 3

of them are independent directors (all directors are male),

who contribute their industry experience and operating

expertise to fine-tune the corporate operating base and

assure the equity of investors. All members are selected

by shareholders, whose remuneration depend to their

contribution and reference to the salary standard of

peer listing companies, while the total payroll has been

lowered than the 3% of the earnings of the year.

The Board of the Directors and managers must take

up the highest morals and ethics standards. For this

reason, the company has developed the "Director and

Manager Commercial Moral and Conduct Standards" to

regulate their precaution and obligation as good-will

manager when executing the tasks without damaging

the company equity due to personal or specific group

interests. In case any resolutions involve the interest of

the director, please avoid and do not commission other

directors to exercise the voting right.

To help the Board of Directors with implementing the

supervision, audit and management function, three

functional committees have been set up, namely

Corporate Governance Committee, Audit Committee,

and Remuneration Committee, in order to give more

flexibility to the operation and improve the quality and

performance of the decision.

In particular, in response to the independent directors

and audit committee established by the 13th Board

of Directors, the functional committee structure of

the Board of Directors was hence adjusted, including

replacing the Internal Audit committee with Audit

Committee while the corporate social responsibilities

(CSR) of "Quality Safety and Health Environment and

Corporate Social Responsibility Committee" will be

adjusted for supervision by the "Corporate Governance

Committee" and the operation of "Quality Safety and

Health Environment (QHSE) will be taken over by the

operating team, therefore cancelling the establishment

of "Quality Safety and Health and Corporate Social

Responsibility Committee."

Corporate Governance Committee

The Committee is in charge of planning the operating

mechanism of corporate governance including the

review on operational per formance, disclosure of

operating information, reliability of control quality, risk

factors of control company, maintenance of stakeholders'

equity, increase shareholder ROI, and monitoring the

corporate social responsibility related operations.

Audit Committee

I n 2 0 1 4 t h e Au d i t C o m m i t t e e w a s v o l u n t a r i l y

established by CTCI with responsibility in monitoring

of fair presentation of the corporate financial report,

the election (dismissal) of CPA and the effective

implementation of independence, performance and

internal control in compliance with the relevant laws and

regulations as well as the control of existing or potential

risks.

Remuneration Committee

The Remuneration Committee was founded in 2011 with

the intention to evaluate the salary and remuneration

policy and system for company directors and manager

through professional and objective viewpoint, which

proposes suggestions to the Board of Directors as

reference on decision-making. This move drives the

corporate finance to orient more towards the overall

profits of the organization and benefits to the disciplines

of corporate governance.

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Title Name Representative Major Roles

Chairman John T. Yu GRQ Investment Corporation Chairman, CTCI Corporation

Vice Chairman John H. Lin Innovest Investment Corporation Vice Chairman, CTCI Corporation

Executive director Andy Sheu Sino Environmental Services Corp Managing Director, CTCI Corporation

Independent Director Johnny Shih Vice Chairman, Far Eastern New Century

Independent Director Jack J. T. Huang Attorney in Charge, Jones Day

Independent Director Frank L. S. FanSenior Advisor to the Office of the President of the Republic of China

Director Takao Kamiji ASIA Crown AB Senior Counselor, Chiyoda Corporation

Director Teng-Yaw Yu CTCI Foundation CEO, CTCI Foundation

Director Quintin Wu Chairman, USI Corporation (USI)

Director Bing ShenIndependent Director, Far Eastern International Bank

Director Yancey Hai Chairman, Delta Electronics Inc.

Director Leslie KooChairman and President, Taiwan Cement Corporation

Director Wenent Pan Chairman, CTCI Foundation

2014 CTCI Board of Directors

Continuation to Strengthen Corporate Capabilities

From the perspective of corporate organization, currently,

the organization of CTCI is divided into the follows:

Executive Management Office (EMO), EPC Operations

(EPCO), Hydrocarbon Business Operations (HBO),

Infrastructure, Environment & Power Business Operations

(IEPBO), Plant Maintenance Business Operations (PMBO),

Environment & Resources Business Operations (ERBO)

and other divisions subordinated directly to the President

(including Quality, Safety, Health, Environment (including

QHSE Division, IT Division, Innovation R&D Center), whose

functions are briefed as below:

Executive Management Office (EMO)

EMO is composed of the enterprise core administrative

department such as finance and planning, legal affairs,

administrative and public relations, and human resources,

to maintain the normal operation of the company.

Engineering, Procurment, Construction

Operations (EPCO)

EPCO is divided mainly into engineering, procurement,

construction and process technology, providing the

engineering services for all business divisions.

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Hydrocarbon Business Operations (HBO)

H B O i n c l u d e s t h e s a l e s d e ve l o p m e n t , p ro j e c t

management, cost estimation and quotation and

technology development for petroleum refinery,

petrochemical and chemical engineering.

Infrastructure, Environment & Power Business

Operations (IEPBO)

IEPBO is in charge of the market development, project

management and technology development for power,

steel, terminal, transportation, incineration, infrastructure

and related business.

Plant Maintenance Business Operations

(PMBO)

PMBO is in charge of the executions of maintenance

related tasks in engineering, including marketing & sales

and reliability study.

Environment & Resources Business Operations

(ERBO)

ERBO's major business includes the upstream and

downstream tasks, such as the construction, operation

and waste treatment for incineration plants.

Divisions directly subordinated to the

President

These departments include the quality and safe health

environment under the supervision and audit of QHSE

Division, various electronic information, hardware/

software and internet resources controlled by IT

Division. The Innovation R&D Center is responsible for

innovation, R&D or improvement for the procedure, tools

or methodologies in project execution. Currently, the

Executive Vice President serves as the Innovation R&D

Center Officer with three units subordinated, including

"New Product Development," "Process Innovation" and

"New Operation Technology Development."

◎ TPC LinKou Power Plant

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Shareholders’ Meeting

Chairman / Vice Chairman

President

Audit CommitteeRemuneration

Committee

AuditingDept.

Board of Directors

Elect

Supervision Supervision

Supervision

Management

Directors

ExecutiveManagement

Office(EMO)

Infrastructure,Environment

&Power Business

Operations(IEPBO)

PlantMaintenance

BusinessOperations

(PMBO)

Environment&

ResourcesBusiness

Operations(ERBO)

InnovationR&D CenterIT Division

QHSE Division

HydrocarbonBusiness

Operations(HBO)

EPCOperations

(EPCO)

中鼎公司治理架構

Corporate GovernanceCommittee

ProvidingAuditingReport

Auditing

CTCI Governance Structure

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Improvement of Internal Control System

Being a listed company, all the operation procedure

of CTCI has been systematized and institutionalized.

The basic structure of CTCI internal control has been

established in accordance with the "Regulations

Governing Establishment of Internal Control Systems

by Public Companies" by the Financial Supervisory

Commission, R.O.C to disclose operational and financial

information on a regular basis, control operational risks,

enhance the effectiveness and efficiency of operations,

and safeguards company asset security and maintains

the right and benefit of shareholders.

Directly subordinated to the Board of Directors, the

Auditing Department is comprised of 7 members,

including the auditing manager and auditing specialists

to cooperate with the Audit Committee and assist

the Board and managers in the inspection and review

of internal control system. Besides reporting audit

operations to independent directors monthly, the

auditing manager attends the Audit Committee and the

Board to report any anomaly and flaws while supervising

relevant departments for correction and following up

quarterly until the corrective measures have been made.

Strengthen Information Security Management

In recent years, information security related issues

have surfaced due to the development of internet. It is

extremely urgent to maintain the information security of

the company and customers.

To exhibit C TCI 's determinat ion in va luat ion of

information security, to reduce information security

related risks, provide sustainable quality services to

customers, and meet customer demand for information

security, CTCI has established a project organization since

June 2014 to introduce ISO27001 international standards

by establishing an information security management

system. Apart from the necessary facilities such as IT

Division computer room and network management,

CTCI also emphasizes its core EPC business to include

four primary systems, SP3D, SPMat, CMS, and POW.

After several months of work, CTCI successfully passed

the BSI authentication with zero non-conformances on

December 12th, 2014.

This is just the beginning and not the end. In the future,

CTCI will continue to improve the information security

management system while expanding in inspecting

conformance with other systems to further advocate the

concept of ISO27001 to all subsidiary companies, thereby

comprehensively promote the information security

management of CTCI Group and meet the international

quality standards.

Implementation of Risk Management

Apart from strengthening the control of management risk

through the abovementioned improvement on internal

control system and the reinforcement of information

security management, CTCI also values highly the risk

control on the actual operational level. Since 2006, CTCI

has introduced a risk management system, formed

◎ Taiwan Corporate Sustainability Awards conferred to CTCI by Taiwan Institute for Sustainable Energy.

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the cross-departmental Risk Management Execution

Committee, and stipulated the Risk Management

Work Rule to regulate the risk management operation

procedures for all departments and projects.

C TC I spec ia l i zes in engineer ing, p rocurement ,

construction and plant commissioning as the main

business. Its actual operation applies matrix organization

to execute the operations, where departments are

responsible for human resource transfer, training, and the

logistic support. The projects are the actual execution of

construction and hence risk management is also divided

into departmental risks and projects risks.

With regards to project risks, project review meetings

are held weekly, monthly or quarterly according to

the significance of projects. Departments and the

management will be reported of the executions status to

understand the where the risks of projects are and seek

for departmental or corporate support. The Executive

Management Office will routinely collect data on project

risks to quantify risks into numbers with control in

addition to continuously follow up and reduce risks.

It is relatively more difficult to quantify departmental risk

into amount but could be done through the collection

of risk items from risk levels and occurrence frequency

identified and the follow-up risk improvement plans. As of

the end of 2014, there were 29 major risk items identified,

107 risk improvement plans, and 31 cases of completed

risk improvement plans. There were 76 improvement

plans that will be continuously followed up.

Enforcement of Information Disclosure

As information disclosure is the basic requirement for

corporate governance, CTCI spares no efforts to enforce

information transparency so its investors can make the

correct judgment based on the operational condition.

Apart from reporting the financial information and

operational status of the Company at the corporate

investor conference regularly held and annual general

shareholders' meeting, CTCI has established the Investor

Relations section on the corporate website to publish

the status of corporate governance, operating reports,

financial reports, announcements, investor conferences,

internal audit, and so on. All investor conferences are

taped and retrievable over the Internet. In addition

to the corporate website, CTCI also discloses relevant

information over the Market Observation Post System of

the Taiwan Stock Exchange website.

In addition to the one-way information disclosure, CTCI

also organizes overseas investor information meetings

held by security companies from time to time to increase

communication and exchange with overseas corporate

investors. Moreover, CTCI voluntarily visits the top ten

shareholders of the Company every year to listen to their

suggestions for company management.

CTCI has also assigns spokespersons and establishes

the Investment Relations Office, where specialists can

directly face customers and shareholders in addition to

immediately responding to the various requirements.

When stakeholders have any suggestion or question,

they can always contact us via phone, fax or e-mail and

prompt responses will be provided.

Establishment of Enterprise Self-Disciplinary Regulations

In compliance with the regulations in UN Global

Compact, Universal Declaration of Human Rights and

The UN Framework and Guiding Principles on Business

and Human Right over human rights, labor standards,

environment and anti-corruption, in addition to ensuring

all daily operations conforming to corporate ethics, CTCI

develops basic conduct standards of compliance for all

board directors, managers, employees and procurement

staff. This set of standards Corporate Governance Norms,

Business Ethical Behavior Norms for Board Members and

Managers, Code of Employee Ethics and Behavior , and

Work Ethical Behavior Rules for Procurement Staff.

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To ensure fair trade and to prevent corruption and

bribery, CTCI specifies that no privilege shall be given

between the employees and stakeholders during a trade.

Employees should not, for the benefit of their own or a

third party, corruptly demand, solicit, accept, or agree to

receive, pay, or receive any form of gifts, entertainment,

kickbacks and bribes when performing their duties.

Furthermore, the company established an investigation

team and complaint hotline for corruption and briberies,

which accept reporting from persons inside and outside of

the organization at all time. The reporting and consulting

hotline is (02-2835-5936) or the email address: anti-

[email protected]. The department in charge of the

complaints is the Human Resource Department. We

encourage employees to notify any infringement of law,

regulation or staff regulations through named reporting. The

company should by any means hold confidentiality of the

identity of the person submitting this report to avoid threats.

In cases that one is suspicious of corrupt practices but could

not be verified of the action violating the law, the consulting

hotline is available for immediate report. Colleagues can

even write e-mails to the feedback box, which will be

directly responded by the manager of Human Resource

Department or related departments for further handling.

Additionally, CTCI requires all employees from affiliates

and overseas subsidiaries to sign "Confidentiality

Commitment , Non- compet i t ion and I nte l l igent

Property Agreement" to guarantee the rights of related

stakeholders. All subsidiaries, affiliates, sub-contractors,

and suppliers in project cooperation with CTCI shall sign

the Non-Disclosure Agreement for project execution

with CTCI. Meanwhile, CTCI will be willing to sign

memorandum of understanding for anti-corruption

once proposed by customers. The Human Resources

Department also lists basic ethics requirement for

colleagues in the Employee Handbook, and arranges

for relevant courses in the orientation program offered

to new recruits. A total of 379 new recruits received the

trainings in 2014 and the cumulative number of trained

personnel now sums to 2,100 people.

Through stringent regulations and trainings, CTCI

pursues sustainable operations and protects the rights of

subsidiaries and affiliates of the group. As of 2014, there

has not been any proved case of corruption and bribery.

Thus, the decent image of CTCI is constantly affirmed and

acknowledged by partners of cooperation.

Adaptation to Policies to Enjoy Tax Break

Numerous subsidiaries of CTCI have cooperated with

national policies on significant public construction

and promotion of industry upgrade by investing in

infrastructures in 2014. Particularly, these subsidiaries have

met the standard for corporate tax deduction conditions

and fostered the economic development of Taiwan.

Note: The amount of training for R&D talents was audited after submission to the Ministry of Finance for filing before validation by the end of May. Hence this version of amount is the number attested by the CPA of financial statements

Tax/Incentive/Preference Items 2014 Amount (unit: NTD)

Tax deduction for corporate R&D expenses under Industrial Innovation Act 7,694,576 (Note)

From 1 July 2008 to 31 December 2009, a five year exemption of profit-seeking enterprise income tax is applicable to manufacturing industry and related technical services for new investments

32,047,964

Items and Amounts of Tax Incentives

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Finance Disclosure

I n 2014, the domestic revenue of CTCI was NT$26.635

billion, accounting for 70% of the total revenue.

The overseas operat ing revenue was NT$11.425

billion, accounting for 30% of the total revenue. On

the other hand, the domestic consolidated revenues

was NT$37.323 billion, accounting for 65% of the total

revenue while the overseas consolidated revenues

was NT$20.369 billion, accounting for 35% of the total

revenue.

Looking back the year2014, CTCI has acquired various

domest ic and foreign large project tender with

cumulative signed and sing-pending contracted projects

summing up to a total amount of NT$77.9 billion, while

the backlog of contract is up to NT$187.1 billion. At the

same time, the market value of stocks was about NT$38.2

billion. The upward climbing trend in backlog project

amount and market value of stocks shows that the group

scale is still growing while the corporate value and image

are widely recognized by the investors.

Item 2012 2013 2014

Liability/Asset Ratio 56.95% 51.19% 58.35%

Return on Assets 6.83% 4.65% 5.03%

Financial Leverage 1.00 1.00 1.00

Amount of Signed Contracts (unit: hundreds of million NTD) 602 669 779

Backlog of Contracts (unit: hundreds of million NTD) 1,532 1,635 1,871

Consolidated Sales Revenue (unit: hundreds of million NTD) 607.39 522.22 576.92

Net Profit After Tax (unit: hundreds of million NTD) 23.92 16.42 18.82

EPS (unit: NTD) 3.32 2.22 2.51

Other Financial Information

Shareholder's Structure

Note: Statistics acquired by 12/31/2014

Chiyoda Corporation

CTCI Foundation

Other foreign shareholders(including institutional investorand natural person)

Other domestic

institutional investors

Domestic investors

9.29%

8.08%

40.82%

30.36%

11.45%

Note: Statistics acquired by 4th August 2014

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Market Value in Last 3 Years

Revenue in Last 3 Years

0

10000

15000

20000

25000

30000

40000

35000

2012 2013 2014

36,10142,189

38,18038,180

Year

(Un

it: millio

n N

TD)

CTCI Corporation Total Revenue CTCI Group Consolidated Total Revenues

201420132012

38,06038,060

57,69257,692

34,824

60,739

31,446

52,222

0

10000

20000

30000

40000

50000

60000

Year

(Un

it: millio

n N

TD)

0

5

10

15

20

2012 2013 2014

16.24

9.9911.20

Year

ROE (%)

Return on Equity in Last 3 Years

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Future Prospects

I n spite of the increasingly intense competition of

engineering market in 2014, CTCI upholds "to move

forward or fall behind" to conduct risk management

and take challenge in revenue. Under the efforts of all

employees, CTCI has broken the record of 2013 revenue

in 2014 and proved to have advanced with the correct

strategy and direction.

To maintain sustainable development, CTCI constantly

thinks about how to cope with the changes in the big

environment to adjust the operating strategy. After

continuous discussion and revision, CTCI defined the

overall operating direction as "Start Afresh with Firm

Determination" for 2015 and set up the mid-term growth

objectives between 2015 and 2017.

Over some ten years ago, CTCI envisioned to "become

a leading global provider of engineering services and

innovative technologies" and now after all efforts

exerted by group employees, we have accomplished the

objectives established by becoming the leader in the

hydrocarbon industry. To advance forward, in 2014 CTCI

has set up brand-new vision and anticipated to become

the "most reliable global engineering service provider".

It is by no means easy to have clients recognize CTCI as

the most reliable business partner. This is not only a lofty

ideal, but also a destination to reach.

Moreover, to keep pace with time and respond to the

challenge for corporate sustainability today, we have

upgraded the group mission and defined it as "to satisfy

our customers with the optimized engineering services,"

which coincides with our vision to prepare for becoming

the most reliable global engineering service provider.

Although the vision and mission could be modified

due to the changes in the operating environment and

market change, the only thing remains unaltered is

CTCI's principles, "professionalism, integrity, team and

innovation," which are where the corporate culture

and core value held by CTCI over the long run and

also the most important guidelines for all employees.

For years, we have established the social image and

characteristics of CTCI based on the philosophy and

in the future, we will continue to uphold this business

principles and strive to expand the business territory,

assuring stable proceeds for shareholders through good-

will corporate governance mechanism and protect the

career development of employees in order to provide

customers with satisfactory engineering quality.

Ad d i t i o n a l l y , b y t h e e n d o f 2 0 1 4 , C TC I s e n i o r

management prepared mid-range strategic planning

for domestic and overseas subsidiar ies with the

strategic objective in overseas subsidiary emphasizing

on "change," encouraging domestic and overseas

subsidiaries to actively cooperate, jointly develop and

base on "profit first and quality over quantity" to design

the strategic actions that can grow in sustainability and

as the direction of all divisions in the following 3 years.

The following is a brief description of the direction and

prospects for CTCI in future development:

Increase the Ratio of Environmental Industry

Revenue

CTCI started out with building oil refinery petrochemical

plants. Not only does CTCI develops multiple products

a n d t e c h n o l o g i e s fo r re p l a c e m e n t o f e n e rg y -

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consumption engineering in the midst of increasingly

alarming petroleum depletion and climate change

but also increases the revenue ratio for environmental

protection industr ies. Recently, C TCI has infused

environmental protection and energy-saving technology

into EPC and project execution with the long-term goal

of reducing the impact from business activities on land,

air, water, and natural ecology system.

CTCI upholds two principles in the cultivation of new

business, one is to invest in business with long-term

stable revenue and profits and the other is to follow

the future orientation of the environment closely. For

example, due to the limited resources on earth, solar

energy is the most viable alternative energy after the

depletion of petroleum, natural gas and coal. Moreover,

Taiwan's population is entering the fast-aging stage

where demographic dividend will plump quickly after

reaching the peak by next year and turns into negative

number in 6 years. Unquestionably, the senior industry

will become the trend of the future and we will continue

observing the latest development of the market and

search for opportunity of investment.

Maximize Existing Business and Continue

Expanding Overseas Market

Developing existing business is the most efficient

method of expanding bus iness , so we need to

strengthen the front-end engineering design capacity

for development upward and extend to build solid

foundation for maintenance business for development

downward. The latter is quite achievable since we seize

the most detailed information of plant construction

and extending business to maintenance operations will

receive the most recognition from customers.

To develop horizontally, we will take active actions by

obtaining specific selected professional technologies and

tendering qualification within a short period of time to

compensate for our shortcomings. We will reduce our

reliance on partners in the past, grow independent and

strive for business opportunities. It is foreseeable that

we will strengthen external M&A or establish permanent

strategic alliance.

Expansion in overseas market is one of the strategies

while CTCI's international markets mainly focuses on the

middle east, Southeast Asia, China and some other target

countries in the future, including U.S., the Philippines,

Indonesia, and India. Past experiences show that the

economy tends to take off when the GDP reaches this

level and will naturally bring us business opportunities.

In general, we will speed up the expansion of overseas

business to reach 60% of overseas market share and 40%

of domestic market share.

Optimize Services, Improve Process and

Establish New Supply-Chain

Providing quality service is the core competency of CTCI

while with on-time delivery and quality-conformance to

contract can we win trust from customers to entrust us

with tasks.

Hence, we will continue to improve the operation

process and establish new supply-chain to shorten work

schedule, save costs and strengthen competiveness. We

will find out the optimal work process and transform

into SOP to complete complex things within limited

time and resources. In the example of CPC No.10 SRU,

the implementation of innovative operation process has

driven the project to be completed 48 days ahead of

schedule and the project was awarded by the Ministry

of Economic Affairs with Public Construction Quality

Excellence in 2014.

Implement Green Engineering

Faced with global warming, CTCI has not only been

devoted to environmental engineering service but also

tried to make breakthroughs in existing technology,

innovative project solutions, and provide cl ients

with professional suggestions conforming to the

environmental requirement. The main competent

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department is the Environmental Protection Group

of CSR Committee in charge of developing plans and

solutions, integrating environmental measures and

routinely tracking the execution outcome of relevant

departments.

For the Life Cycle of plant construction, including

engineering design, procurement, construction to

commissioning as well as operation & maintenance after

plant handover under the premise of conforming to

customer demand and costs, CTCI provides and proposes

to adopt safety-conformance and harmless materials

and equipment in order to reduce waste and lower the

depletion of natural resources. In 2014, CTCI will gradually

expand the coverage of environmental protection and

energy saving measure taken for projects contracted in

an attempt to cover all domestic projects and achieve the

objectives in health protection and ecology conservation.

Cultivating Talent and Appoint Successor for

Key Roles

Excellent talent is an important key for an enterprise to

sustain and lead in brand values while internal cultivation

should be prioritized than introducing new staff. CTCI

expects to make ourselves trustworthy for global clients

and hence we need to equip ourselves with a world-

class team. We not only need to develop professional

basic skills but continue to enrich ourselves with other

knowledge in finance, accounting, legal affairs, human

resource, and leadership, in addition to developing

international perspective and foresight for employees

to become well-rounded talent qualified for any critical

positions.

Bring Synergy into Full and Integrate the

Overall Group Resources

CTCI owns 6 affiliated companies in Taiwan and each has

its own specialized operations without overlapping. There

are five subsidiaries overseas that are branches of CTCI

and hold the same operation scope as CTCI. As of the

end of 2014, there are 7,318 employees worldwide and

the synergy management in talents, technologies and

business all require systematic operations to produce the

effect of synergy, and thereby creating more operations

and profits. In the future, CTCI will establish a specialized

department that integrates the group resources in order

to bring the maximum synergy into play.

Under the efforts of all colleagues, CTCI ranked number

one in the engineering contract category in 2014

CommonWealth Magazine 2000 enterprise survey in

terms of revenues and the 29th for Top 650 service

industry in Taiwan. ENR magazine ranked CTCI as the

114th for International Design Firms and 131st for

International Contractors, showing CTCI's strength in the

global engineering sector.

To maintain sustainable and good operation and

governance, the company needs to maintain information

transparency, develop growth objectives and strategy,

as well as tak ing the organization forward in the

accurate and bright path. Upholding integrity and

good will, CTCI has become an excellent enterprise that

gives considerations to investors, internal employees,

stakeholders, public and the community environment.

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Operation and Governance Honor Roll

Awards Description

Listed among "Top 50 for Excellence in Corporate Social Responsibilities" by CommonWealth Magazine

Ranked the 26th among "Top 50 for Excellence in Corporate Social Responsibilities" by CommonWealth Magazine (annual revenue over NT$10 billion). CTCI has outperformed compared with many other large enterprises in terms of corporate governance, enterprise commitment, social participation, and environmental protection, indicating that CTCI has received profound recognition in the behaviors of corporate sustainability.

Top 1 in the contractor sector in the Top 2000 Enterprise Survey by CommonWealth Magazine

Ranked the 29th on the Top 650 service industry in the CommonWealth Top 2000 Enterprise Survey, retaining Top 1 e in the contractor sector and the 43rd in the best profit-making company among service industry.

Sustainable Corporate Governance Fulfillment Award from BSI

CTCI is honored with Sustainable Corporate Governance Fulfillment Award from BSI for its commitment to take care of economic, environmental and social development while maintaining its business operations.

Taiwan Enterprise Sustainable Report Award

Honored by Taiwan Institute for Sustainable Energy's with "Top 50 Corporate Sustainability Report Award, Silver Award," "Growth through Innovation Awards," and "Transparency and Integrity Awards." Upholding the principle of integrity, CTCI continues to increase the corporate governance transparency, maintain engineering quality, care for employees and form harmonious partnership, pay attention to environmental protection and reduce resource waste, in addition to improving corporate image and creating stable financial performance, and continuing fulfilling corporate social responsibility.

A++ in Information Disclosure and Transparency Ranking System by TWSE and Taipei Exchange

In the "Information Disclosure Assessment" held by TWSE and Taipei Exchange, CTCI has been ranked as Grade A for 4 years in a row in the Information Disclosure and Transparency Ranking System, A+ in 2010 and 2011, and better still, A++ in 2012, 2013 and 2014, indicating that CTCI's efforts have been recognized.

Engineering News-Record (ENR) is a well-known American engineering magazine which reviews the

operational revenues of international engineering companies every year, dividing them mainly into

"Design Firms" and "Contractors." In "International" section, rankings are based on the engineering

revenue of the company abroad, while rankings of "Global" are based on the aggregate revenues

both home and abroad of the company.

Mini Dictionary

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In response to climate change, energy conservation, carbon reduction and reduction in greenhouse gas emissions, CTCI advocates green management to integrate the concept of environmental protection with corporate management. CTCI thus established the cross-departmental CSR Environmental Protection Group in 2013 to promote and strengthen various energy-saving measures for all workplace. In addition to providing clients with energy conservation and carbon reduction services by proposing suggestions for green energy conservation at quotation and execution projects, thereby assist the project owners to implement policies on energy conservation and carbon reduction while contributing efforts to environmental protection during the execution of projects.

CTCI has been committed and spared no efforts to introducing various green engineering technologies over the long run and provided our clients with the economical and feasible green energy conservation solutions through the full life cycle perspective of in engineering, procurement, construction, commissioning, and decommissioning. These solutions reduce pollution and lower risks affecting human health and environment, thereby innovate and upgrade the green competitiveness of industries. Hence, we can attain a multi-win scenario among CTCI, partners, stakeholders, and the social environment, also contributes maximum efforts in maintaining the sustainability of the ecological environment.


51

Performance of Green Engineering Implementation

2014 Indicative Green Engineering Key Achievements

Note: The above data refer to the cumulative energy saved by the life cycles of plants between 2013 and 2014.

1. Cumulative electricity-consumption saved:

2. Cumulative CO2 reduction:

3. Cumulative water saved was

4. Cumulative Volatile Organic Compounds (VOCs)

1,892 GWh, equivalent to 17 days of nuclear power generation for Taiwan.

40 million metric tons, equivalent

102,042 times the annual carbon

absorption of Daan Forest Park in Taipei City.

128,570,000 cubic meters,

equivalent to 144 days of water use by

Taipei City.

reduction by 11,327 metric tons.

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Green Engineering Performance and Technology Development

Green Engineering Performance

The plant construction projects contracted by CTCI

adopt new green process which substantially reduces

the impact to the environment compared with the

last generation of processing and can realize the idea

of taking consideration of economic development

and environmental protection. CTCI owns solid R&D

background in engineering technologies and has

accumulated rich experiences in technology R&D while

participating in international projects and cooperation

with international engineering companies. Moreover,

CTCI is committed in the relevant green technology

development with actual introduction of various

plant construction projects. The following is a list of

performance that discloses and summarizes the green

engineering of 8 indicative projects in 2014:

Notes: 1. The annual electricity saving amount was based on daily 24-hour operation for duration of 365 days. The CO2e emission amount promulgated by Bureau

of Energy, Ministry of Economic Affairs was 0.522kg/kWh. The annual electricity saving amount for outdoor lighting was based on daily 12-hour operation for duration of 365 days while the electricity saving amount for indoor lighting was based on 24-hour operation for duration of 365 days.

2. Instructions of Abbreviation: VOCs: Volatile Organic Compounds CO2e: Carbon Dioxide Equivalent VE: Value Engineering3. Saved heat energy that was used for vapor recovery (based on the vapor heat energy required for recovering vapor steam). 4. The effective water-cooling equipment of energy saving from cooling was not the actual water consumption. 5. The annual reduction of VOCs was based on the comparison between the average valve (emission amount standard 1000ppm or above) and the low

fugitive emission valve (emission amount standard 100ppm)

Summary of Green Engineering Performances in 2014

ItemGreen Engineering

Technology ItemCategory of Energy

Saved

Hydrogenated styrene Project

EVA Project

A

EVA Project

B

p-Phthalic acid Project

Sulfur Recovery

Unit Construction

Project

Flare Gas Recovery

System (FGRS) Project

Domestic Power Plant

Thailand Power Plant

1 Energy Saving Process / Heat Recovery

Fuel Oil (10,000 metric tons/year)

- - - - - - - -

Heat energy (million kcal/year)

- 54,069 - 2,902,718*3 186,667*3 - - -

Natural gas (million cubic meters/year

- - - - - - - -

Electricity consumption (kWh/year)

- - - - - 2,625 - -

2 Water Saving Water (10,000 metric tons/year)

6.8 - - - 7.61 327*4 43 -

3 Application of high performance motor


144.56 366.84 360.26 4324.89 396.09 232.78 - 496.32

4 Application of inverter driven device


- - - 2060.13 159.89 - - -

5 Application of high performance transformer


70.08 105.12 105.12 - 60.74 - - -

6 Application of two-wire lighting control


- - - - - - 657.00 -

7 Application of high performance lighting


237.26 47.70 192.01 - - - 1181.95 -

8 Energy saving from green building air conditioning


84.08 - - - - - 435.2 -

9 Application of low fugitive emissions valve*5

VOCs (metric tons/year) 18.38 35.34 1.46 - 22.3 - - -

10 VE results of plant layout CO2e (Metric tons)

- 5.6 - 1,857 11.3 - - -

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Air Pollution Prevention

Technology Development

˙DeNOx˙DeSOx˙Application of low fugitive emission valve for VOCs

Benefits

˙Reduce the harmful effects of air pollution to health


Air pollution is quite inevitable from the process of building plant to the formal operation upon plant completion. Hence, CTCI introduces various advanced air pollution prevention technologies incorporated with low fugitive emission valve to reduce pollutants emission and damage to the human body and environ-ment.

Process Energy-Saving Technology

Energy saving and environmental protection have become the global trends while many proprietors are also committed to introducing advanced green energy-saving process. CTCI then plays the role of completing the green energy-saving process with implementation. CTCI also optimizes process design in the process of building plants by reducing energy consumption and CO2 emission.

Electrical and Rotary Machine Energy-Saving Technology

Green Buildings

All plants come with one central control center for use by office workers or instrument operation in the plant. CTCI designs the building with green building concept by using green materials while adopting reduction, recycling and reuse of water and power consumption through deploying green facilities to the plant environment.

Ding-Ding and Ding-Mei are CTCI’s Goodwill Ambassadors for CSR promotion.

In the following section, they will guide you through the hard engineering

technologies to make them clear and easy to understand to all stakeholders.

You may not be aware that rotary machines (such as the pumps of electric motors) are the most power-consuming devices, account-ing for 20%~60% of the total power consumption of an industrial plant. Hence, all plants built by CTCI adopt high-performance motors, trans-former and lighting to cooperate with VFD for reduction of power consumption.

Equipment Noise Prevention

Like air pollution, it is inevitable for noise production during plant construction and official operation. However, CTCI finds out the instrument, pipeline or structure that makes vibrating noises through diagnosis, analysis and strategy development to actively control them, which not only reduces noise injury but also increases the operating life of the equipment and reduces resource waste.

Waste Management

For wastes discharged by the plants, CTCI applies reduction, recycle and reuse method by introducing various technologies to remove hazardous substance from waste water, using recycled water to supply to the plant, reduce waste water production, and properly handle discharge issues.

Air Pollution PreventionConclusion

In reality, the R&D and application of one green technology requires years of cumulative experience and improvement before reaching perfection. For CTCI, the continual introduction of world’s advanced green techniques and technology are most urgent and CTCI will promote the concept of green engineering from plant planning, process design and procurement that meet the project owner’s cost requirement, and to collaborate with the project owner and supplier in the contribution of environmental protection.

Ding-Ding and Ding-Mei Acquaint You with the Plant in 3 minutes

54


Technology Development

˙DeNOx˙DeSOx˙Application of low fugitive emission valve for VOCs

Benefits

˙Reduce the harmful effects of air pollution to health


Air pollution is quite inevitable from the process of building plant to the formal operation upon plant completion. Hence, CTCI introduces various advanced air pollution prevention technologies incorporated with low fugitive emission valve to reduce pollutants emission and damage to the human body and environ-ment.

Process Energy-Saving Technology

Energy saving and environmental protection have become the global trends while many proprietors are also committed to introducing advanced green energy-saving process. CTCI then plays the role of completing the green energy-saving process with implementation. CTCI also optimizes process design in the process of building plants by reducing energy consumption and CO2 emission.

Electrical and Rotary Machine Energy-Saving Technology

Green Buildings

All plants come with one central control center for use by office workers or instrument operation in the plant. CTCI designs the building with green building concept by using green materials while adopting reduction, recycling and reuse of water and power consumption through deploying green facilities to the plant environment.

Ding-Ding and Ding-Mei are CTCI’s Goodwill Ambassadors for CSR promotion.

In the following section, they will guide you through the hard engineering

technologies to make them clear and easy to understand to all stakeholders.

You may not be aware that rotary machines (such as the pumps of electric motors) are the most power-consuming devices, account-ing for 20%~60% of the total power consumption of an industrial plant. Hence, all plants built by CTCI adopt high-performance motors, trans-former and lighting to cooperate with VFD for reduction of power consumption.

Equipment Noise Prevention

Like air pollution, it is inevitable for noise production during plant construction and official operation. However, CTCI finds out the instrument, pipeline or structure that makes vibrating noises through diagnosis, analysis and strategy development to actively control them, which not only reduces noise injury but also increases the operating life of the equipment and reduces resource waste.

Waste Management

For wastes discharged by the plants, CTCI applies reduction, recycle and reuse method by introducing various technologies to remove hazardous substance from waste water, using recycled water to supply to the plant, reduce waste water production, and properly handle discharge issues.

Air Pollution PreventionConclusion

In reality, the R&D and application of one green technology requires years of cumulative experience and improvement before reaching perfection. For CTCI, the continual introduction of world’s advanced green techniques and technology are most urgent and CTCI will promote the concept of green engineering from plant planning, process design and procurement that meet the project owner’s cost requirement, and to collaborate with the project owner and supplier in the contribution of environmental protection.

Ding-Ding and Ding-Mei Acquaint You with the Plant in 3 minutes

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2013 Electricity-Consumption saving

(Million kWh)

2013 Water Saving (10,000 Metric Tons)

2013 VOCs Reduction (Metric Tons)

2013 CO2 saving (Million kWh)

2014 Electricity-Consumption saving

(Million kWh)

2014 Water Saving (10,000 Metric Tons)

2014 Cumulative VOCs Reduction (Metric Tons)

2014 CO2 saving (Million kWh)

2,500

2,000

1,500

1,000

500

0

14,000

12,000

10,000

8,000

6,000

4,000

2,000

0

12,000

10,000

8,000

6,000

4,000

2,000

0

45

40

35

30

25

20

15

10

5

0

Cumulative Electricity Consumption was Saved by about 1,892 million kWh in 2014

Cumulative Water Saving was Saved about by 128,750,000 Metric Tons in 2014

Cumulative CO2 Reduction was Saved by about 40 Million Metric Tons in 2014

Cumulative VOCs Reduction was Saved by about 11,327 Metric Tons in 2014

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Technological Development of Green Engineering

The actual performance represents the final outcome. In

fact, during the process of project execution, the biggest

challenge faced by engineering companies is how to

apply various green engineering in actual projects apart

from maintaining the motive and power for constant

R&D of the latest technology. The following presents

the description and summary of CTCI's technological

development in green engineering.

1.Process Energy-saving Technology

Benefits: Good process design determines the increase of energy e�ciency in overall plant.

In EPC turnkey projects, process design and the

application of relevant technology are usually the basis

of determining the energy efficiency of overall plant.

The consideration of introducing energy saving and

environmental protection at the initial process design

stage will facilitate the optimization of effectiveness for

the entire project.

Particularly in the midst of environmental pressure and

the increasingly rigorous green requirement due to

climate change, taking consideration of energy saving

and reduction in the improvement and application of

process technology has now become inevitable. CTCI

plays the role in turnkey solution as the integrator of

introducing existing optimal and feasible technology or

cooperating with suppliers of patented process jointly to

accomplish the objectives in various project saving and

carbon reduction, thereby to increase the overall energy

efficiency.

Currently CTCI achieves the objectives in energy saving

and carbon reduction through three methods:

(1) Upgrade process technology: Assist project owners

to introduce new process technology to enhance

device efficiency and production capacity, increasing

productivity under the same facility and equipment.

(2) Saving water resource: The plant process usually

involves several heat exchangers or air cooler devices,

which adopts proper difference in temperature

between the cooling water opening and closing

through consideration of optimization system, which

not only saves the circulation amount of cooling water

but also relatively reduces the energy consumption

needed for cooling water circulation. Moreover, the

recovery of condensing steam applied to cooling water

can also save the amount of cooling water.

(3) Process waste heat recovery: A further recycling of

waste heat generated from the process (including

boiler) , using heat exchanger to recovery and

generate h igh-pressure s team for rec yc l ing.

Alternatively, regenerative thermal oxidizers or such

energy-saving pollution control measures can be

conducted to process the waste gas treatment from

VOCs ( Volatile Organic Compounds), which fully

utilizes the combusting heat energy generated from

waste gas to assist with reduction in combustion

processing while the excess heat energy can further

be used for generating medium pressure steam to

reduce the energy consumed by previous steam

production using fuels. Additionally, the condensed

steams recovered are possibly re-converted into

lower-pressure steam for reuse.

2.Rotary Machine Energy Saving

Benefits: �e reduction of electricity consumption for rotary machines is equivalent to the control over main electricity consumption.

Rotary machines are widely used in various processes,

including water, waste water, chemical engineering,

p e t ro c h e m i c a l s , p o w e r g e n e r a t i o n , fo o d , a n d

pharmaceutical industries. In the abovementioned

industries, the electric energy consumed by rotary

machines is roughly estimated to account for 25% of

the world's power demand. On the other hand, electric-

motor driven rotary machines are the main demand of

power consumption for plants. Statistically, the electricity

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amount used by rotary machines could account for a

considerably high ratio, between 30%~60% of the total

industry plant electricity amount. We adopt the following

two methods to save energy consumption by electric

motors:

(1) High-Efficiency Motor: Motors with higher efficiency

will naturally reduce energy waste. Considering the

rotary machines in general industry factories with

the demand of continuous operation, it will save

considerable energy and electricity bill over the long

run.

(2) Use with Variable Frequency Inverter: The process

conditions will require adjustment following the

changes in operating demand and the use of regulator

valve or other pressure-reduction devices will increase

pressure loss to the system and cause waste in electric

energy. Hence, the use with variable frequency

inverters and variable speed motors in replacement

of the pressure-reduction devices in the system for

variable amount control will adjust the rotating speed

of rotary machines according to process demand and

consequently save electricity use.

3.Electrical Energy-Saving Technology

Benefits: E�ectively improve energy e�ciency, save energy and reduce waste

The implementat ion of electr ical energy-saving

technology is classified into high permeability oriented

silicon steel transformers and lighting improvement:

(1) High-permeability oriented silicon-steel transformer:

The iron core of an average transformer in operation

wil l generate a circulat ing current and cause

extremely high eddy-current losses due to alternating

magnetic field. The use of high-permeability oriented

silicon-steel transformer can reduce no-load iron

core losses and reduce noise without affecting

a quiet environment, in addition to maintaining

stability during long-term operation and considerably

increasing efficiency.

(2) Use of LED and T5 lighting system and two-wire

lighting management system: Indoor/outdoor LED

and T5 lighting fixture with introduction of two-wire

lighting design management system (approximately

30% of electricity consumed by energy-saving

lighting) not only simplifies the tubing/wiring and

loading circuit but also relatively reduces the overall

costs and wastes, and creates benefits of energy-

saving and waste reduction.

4.Green Buildings

Benefits: Infusing energy-saving concepts with plantplant buildings

Aside from the process and engineering execution

process that are executed through green engineering,

CTCI will infuse the concept of green buildings to the

construction for control center established by all plants

and the hardware architecture of the plant, as described

in the following example:

(1) Hydrogenated styrene Project

• Green design allows buildings with an overall carbon

sequestration capacity to reach 1,121,519 kg within

the 40-year life cycle, outperforming the green

standard (1,031,715 kg) by 89,804 kg.

• Full use of permeable pavement and green covering

design allows the water retention capacity upon

the completion of building and the water retention

capacity of original base to reach an average ratio of

17%, outperforming the benchmark value (15%) by 2%.

• The utilization rate of indoor green material for

administrative buildings is 52%, in particular a large

number of non-solvent based paints with low fugitive

emission and healthy green building materials.

Additionally, a range of blank-off panel of drywall does

not use any panel containing asbestos.

• The Administrative Building strengthens the building

housing with energy-saving design, reaching 25.15

（kWh / m2‧K）in energy consumption differences

for building housings in the whole year.

• The number of air-conditioning main units was

controlled to save electricity by about 84,080 kWh

• U s e Po l y v i ny l i d e n e f l u o r i d e ( P V D F ) c o a t i n g

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on al l colored steel roof ing and wal l sur face

comprehensively to keep the housing of buildings in

coastal plant area at low maintenance requirement.

(2) EVA Project B




standard (5,705,685 kg) by 182,315 kg.


design allows the water retention capacity and the

water retention capacity of original base to reach an

average ratio of 24% upon the completion of building,

outperforming the benchmark value (15%) by 9%.

(3) p-Phthalic acid Project




standard (915,558 kg) by 3,528,419 kg.


design allows the water retention capacity upon

the completion of building and the water retention

capacity of original base to reach an average ratio of

25%, outperforming the benchmark value (15%) by

10%.

• Install rainwater storage tank with capacity of 5 tons

and the percentage of rainwater substituted for

demand in households is 4%.

• The utilization rate of indoor green material is 45.52%,

in particular a large number of non-solvent based

paints with low fugitive emission and healthy green

building materials. Additionally, a range of blank-off

panel of drywall does not use any panel containing

asbestos.

(4) Flare Gas Recovery System (FGRS) Project


sequestration capacity to reach 364,832 kg within the

40-year life cycle, outperforming the green standard

(307,783 kg) by 57,490 kg.

(5) Domestic power plant

• Control the number of air-conditioning main units to

save electricity by about 435,200 kWh.

5.Equipment Vibration Control and Noise

Prevention

Benefits: E�ectively improve plant environment and control noises

Composed of experts in the process, equipment,

pipeline, civil engineering and other fields, a task-

oriented vibration team was set up to assist owners to

handle various phenomena on vibration. The purpose

of the team is to propose improvement programs

through performing problems diagnosis, possible cause

analysis, root-cause determination, and development of

countermeasure and other steps to allow the equipment,

pipelines and structures to comply with the vibration

standards under various operating conditions, and

thereby increase the plant's reliability and operating

life cycle. In particular, performances with condenser

vibration, rotating equipment vibration, smoke pipe

vibration, water hammer phenomenon of LNG transient

fluid, inlet pipeline steam hammer of steam turbines,

safety valve intermittent discharge, relief valve vibration

and other issues have been improved over the years.

Meanwhile, with regards to noise prevention measures,

the use of silencers, acoustic enclosures and plant

acoustic barriers have been coordinated to meet the

overall noise standard requirement of the plant. In

addition, equipment suppliers of all rotating machinery

are also required to perform mandatory noise tests

before shipment, and provide reports for reference and

review. Apart from actual noise value measured at plant

sites, engineering software is also used to analyze the

entire plant premise, and noise distribution is performed

with visual processing. This is to ensure that all regions

that need noise prevention are applied with such

measure to keep the noises under the permissible values,

which effectively lowers the adverse effects of working

environment on operators.

6.Applications of Low Fugitive Emission Valves

Benefits: E�ectively reduce VOCs emission amount from petrochemical plants

Fugitive emissions may occur at the flange joints of

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any equipment or pipeline. The main leaking sources

are pumps, flanges, compressors, seals, and other

flange joints between valves and the other fittings. The

average valve used by petrochemical plants contains

VOCs leakage of 1,000ppm or higher, however CTCI has

selected low fugitive emissions valves during the design

period with leakage standard of 100ppm to effectively

reduce VOCs leakage. Such low fugitive emission valve

will reduce fugitive emissions at valves and lower the

impact on people and the environment during the plant

operation. For the process fluid in pipelines that comes

in the forms of gas and light fluid, low fugitive emission

valves are selected and applied with the reduced VOCs

emission calculated from Stratified Emission Factor

Method.

7.Application of Plant Layout Value Engineering

Benefits: reduce plant construction costs and the impact of carbon dioxide emissions on the earth and environment

Apart from considering the requirement of regulations

and standards, smooth process sequence and operating

maintenance in the design of plant layout, CTCI also

carries out value engineering on the main plant facilities

(i.e. equipment, structure and pipelines). CTCI optimizes

plant layout through systematic discussion, shortens the

distance between equipment and thereby minimizes

the use of structural materials and pipeline materials.

Consequently the carbon dioxide emission generated

by relevant materials in production will reduce the

damage to the earth and environment as well as save

construction costs for plants.

8.Air Pollution Prevention

Benefits: Improve air quality

CTCI has been investing in air pollution prevention

technology for more than 23 years. Besides having rich

performances in Hydrodesulfurization and Selective

Catalytic Reduction (SCR), and takes more proactive

participation in recent years to constantly improve air

quality, reduce various air pollutants and the emission

concentration of fine particulate matter (PM2.5). Using

economic and feasible technology, cost-benefit analysis,

and the concept of integrative pollution control system

to select denitrification, desulfurization, dust removal,

sewage treatment and combination of different units

and to concurrently take care of the reduction measures

for all pollutant emissions from the waste gas exhaust to

the chimney. For example, to cope with the increasingly

rigorous requirement for environmental protection, the

sinter plant of a large and longitudinal operation steel

mill adopts advanced design and equipment in addition

to introducing ideas of clean production to cope with

energy-saving, carbon reduction and reduce impact on

the environment. The waste gas circulation system can

reduce waste gas generation and recover the heat energy

from heat waste gas through the recycling system to

generate steam. Moreover, the electrostatic equipment

using the latest dust removal technology reduces 99%

of dust emission while desulfurization, denitrification

and de-dioxin equipment are installed to effectively

reduce waste gas emission to meet national air pollutant

emission standards.

CTCI has also introduced Dyna Wave wet caustic process

in the process of constructing sulfur recovery unit,

allowing the concentration of exhaust gases (SO2, NOx

and particulates) to remain lower than conventional

exhaust gas treatment methods and conform to Best

Available Control Technology (BACT) standards. Since

1991, C TCI has been actively participating in the

denitration work of Selective Catalytic Reduction (SCR)

for domestic and abroad projects, with a cumulative

contracting achievement of up to 118 units. These have

amounted to 141 million NM3 exhaust flow per hour.

Among these, 110 units have been completed and in

operation, capable of handling a total of 90 million NM3

exhaust flow per hour. Based on the design parameters

of each project and annual operating time of 8,000 hours

per year, they are capable of reducing 246 thousand

metric tons of NOx emissions per year.

9.Wastewater Treatment

Benefits: Lower water consumption and recycle

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wastewater for reuse.

The practical technological applications of wastewater

reduction and reuse in plantsplants include: condensate

water flash evaporation technology, cooling water inlet/

outlet temperature differential technology, wastewater

recycling for sealed loop circuit of cooling water system

utilization. In addition, we also emphasize the R&D of

wastewater treatment and recycling technology, the

achievements of which included:

(1) Energy Recovery and Reuse in Wastewater Treatment

Plant

An advanced Double-layer Upflow Anaerobic Sludge

Blanket method that is currently adopted in the

contracting service at Oriental Petrochemical wastewater

treatment is able to provide more than 70% removal

efficiency of Chemical Oxygen Demand (COD) while

handling 82 cubic meters wastewater daily. In the daily

production of more than 33,000 cubic meters of bio-

gas, the rich thermal mass of 60% methane is especially

sent to the plant to serve as the boiler fuel. Not only can

it reduce the amount of boiler fuel consumption, it can

also reduce greenhouse emissions such as methane and

carbon dioxide.

(2) Application of Membrane Bioreactor Technology in

Industrial Wastewater Recycling System

CTCI has combined the expertise of the academic

field, membrane makers and engineering companies

respectively to build a design database of various

characterized wastewater treatment system in order

to develop the best possible processing technology

and Membrane Bioreactor (MBR) and related products.

These technologies or equipment have been applied in

practical projects with large quantity of wastewater such

as hydrocarbon industry, steel industry and integrated

wastewater treatment of industrial zones, and have

attained good processing performances.

(3) Application of Electrodialysis Reversal Technology in

Industrial Wastewater Recycling System

C TCI has adopted Electrodialys is Reversal (EDR)

wastewater recycling system after combining its

engineering expertise and the R&D capabilities of

ITRI. The Pilot Test Economic Assessment of EDR was

completed in 2012 and the system operation cost is

compared with the existing system costs of Ultrafiltration

(UF), Nanofiltration (NF) and Reverse Osmosis (RO) in

Wurih Recycling Plant.

It was found that the operation costs of EDR recycled

water are lower than that of existing RO recycled water

based on the comparison benchmark of cooling water

tower's discharge recycling scale of Wurih Recycling

Plant. However, the costs have slightly increased when

both are compared with the sum of current tap water

fee and the wastewater treatment fee. Before the water

rate is increased, EDR could be applied to the project

with high risk of loss due to water shortages, or to the

plants that have environmental impact assessment

commitment in plant construction and expansion.

10.Analysis and Application of Life Cycle Costing

Benefits: Emphasis on long-term operation costs with implementation of concepts in sustainability

This year, CTCI introduced the Carrier Engineering

Economic Analysis (EEA) and attempted to apply

the program for project use. The past calculation of

converting relevant recovery based on single energy-

saving facility was too simplified and various factors were

neglected. The calculation of energy-consumption plus

Engineering Economic Analysis (EEA) not only conducts

analysis (as shown in Figure 1) on economic factors such

as borrowing, cash flow and recycling year but also adds

the various operation, maintenance and repair, the final

discharge and dismantling as well as other internal and

external energy consumption and costs. The cycle of

one life cycle analysis takes 20 years into consideration

and it can avoid short-term factors based on intuitive

determination while neglecting long-term impact. The

proposals of the analysis will also attain scientific grounds

and concepts of sustainability to convince all departments

and project owners with relative ease.

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◎ 1. Life-Cycle Cost Cash flow (Adapted from Carrier Applications – Life Cycle Costing for HVAC Systems)

11.Real-time Project Information Dashboard

Benefits: Focus on anomaly activities to achieve green management objectives

Real-time project intelligent information dashboard

is a common information platform providing project

execution information to help project team members

oversee the real-time status at engineering, procurement,

construction and commissioning stage timely and

synchronously. It helps to make the project execution

information more transparent and more manageable.

Through the effective and meaningful pre-defined

key index, the management level (such as PM, PEM

and leader engineers) can just focus on the abnormal

activities and then dig all the way down the root causes

of the problem so that proper countermeasures can be

taken to reduce project risks in a timely manner. As a

result, all EPC projects can be completed on schedule to

meet client's requirements and achieve the objective of

green engineering management.

12.Integration and Application of Engineering

Material Information

Benefits: Reduce rework and lower on-site modi�cation and surplus material

The material management of lump-sum engineering

covers the information control related to material during

engineering, procurement and construction stages. Main

goal is to ensure that proper material can be delivered

to the job site timely according the requirements of

quality and construction schedules in order to fulfill

the requirements of installation works at job site.

Poor material control will lead to rework and on-site

modification work, surplus and waste materials will be

also substantially increased, resulting in resource waste.

All current quotation and implementation projctes of

CTCI come with a set of standard equipment control

process and strong equipment control system to assure

the goal of none-waste green engineering can be

achieved.

13.Application of Building Information

Modeling (BIM)

Benefits: E�ectively control construction schedule to avoid building material waste

In recent years, there has been an increasing demand for

Building Information Modeling (BIM) in the engineering

field. Since 2010, CTCI has applied Revit 3D to build the

models (Figure 2) of general civil and building work

as well as relevant information of building materials

and developed the interface programs to build up a

longitudinal integrated operation on planning, analyzing,

designing, drawing, material take-off, and manufacturing

for civil engineering. They have been successfully applied

to many projects over past years, which not only improve

the quality of engineering designs by providing accurate

drawing, labor and materials but also extending the

applications in construction management to avoid

building material waste and control the construction

schedule effectively.

◎ 2. Illustration diagram shows that Revit 3D was used to generate the 3D model of analysis design

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14.Automatic Wiring & Piping Design

Benefits: Precise consistency in drawing, labor and materials to avoid material waste.

In view of the considerably high spending on manpower

and costs for plant construction engineering to perform

the route planning and design for instrumentation

piping and wiring works, the company has developed

an automatic design system. Users only need to pull

out the main route by using mouse, and the system

will automatically generate the piping or wiring sub-

routes for the instrument of the same signal to connect

to the main route, and then automatically calculate and

label the piping/wiring size or the number of cables

and cable tray size to improve work efficiency, reduce

human design errors, shorten work time, upgrade

the drawing quality and save labor costs. Meanwhile,

system will automatically generate drawings and BOM

by calculating the route data as a construction basis. It

accurately achieves the consistency between drawings

and materials to avoid materials waste.

15.Application of 3D laser scan

Benefits: Improve job site measurement operations

The 3D laser scanner scans with multi-point laser

scanning to establish Point Cloud in digital model.

Through Point Cloud, we can analyze the genuine

objects or environment of the site and gather the

information of shapes and spatial locations to re-establish

precise 3D model of the physical objects or environment,

and bring "plant" into officeon top of engineers' desk,

which effectively improve the site measurement

operations. CTCI applies this technology to projects of oil

refinery plants in Thailand and petrochemical plants in

Saudi Arabia.

16.Application of Mobile Devices at Job Site

Benefits: Reduce the amount of paper use and quickly respond construction status

Adopting the convenience and portability of mobile

communication devices, CTCI's mobile devices bring

the construction operation of site into a new century of

engineering management by walking around. This device

is installed with many Apps of engineering practices

such as the pipeline welding progress, ISO drawing, site

punch, site documents, piping support standard, which

are provided to users to carry out the approval, data

key-in and query activities of construction management

and replace the traditional carrying of paper drawings,

thereby to quickly respond with construction status,

improve work efficiency, and achieve the objectives in

green construction management.

17.Precast Concrete Technology

Benefits: Low maintenance demand with high economic bene�ts

CTCI has developed a precast concrete technology and

promoted its application to EPC lump-sum turnkey

projects. The precast reinforced concrete construction

method involves using reinforced concrete materials that

have been pre-casted in the plant under stringent quality

control before being transported to the worksite for

installation. As compared to traditional on-site concrete

construction method, precast concrete structures

features many advantages, including higher durability,

lower maintenance demand, shorter construction

period, higher economic efficiency, quieter and cleaner

construction sites and higher fireproof rating. This

technology has been applied to silicon, PTA and SRU

plants (as show in Figure 3).

◎ 3. Illustration diagram of precast installation work

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18.Application of Construction Modularization

Benefits: Enhance construction site safety

C o n s t r u c t i o n d e t a i l s a r e d e s i g n e d t h r o u g h

modularization and coordinated with CTCI's innovative

4D programs to simulate the dynamic construction

modularization of rigging process and develop safe and

feasible installation orders. It shortens installation time,

enhances construction quality, reduces work at heights,

avoids industrial safety issues, and reduces site welding

manpower demand. Such modularization has been

applied to Naphtha Cracker and Sulfur Plants, as shown

in Figure 4-5.

◎ 4. Steel Structure Modularization Rigging Simulation

◎ 5. Steel Structure Modularization Rigging Simulation

19.Application of Piping Fabrication and

Installation

Benefits: Increase management e�ciency and reduce errors

During the piping fabrication stage and in cooperation

with 4D construction plan and progress requirement,

all steps from fabrication completion, transport to lay

down area to the final step of transporting from lay down

area to site installation can receive the most detailed

information of fabrication, warehouse management and

installation data through piping fabrication system. Later

the fabrication spools can be added with barcode labels

that can immediately display the relevant data on the

spools through barcode scanner for personnel to identify

and query, as shown in Figure 6. During the installation

stage, construction workers can directly browse and

search for 3D models and relevant documents from

mobile device for the approval activity while concurrently

sharing design drawing and discussing contents with

remote project teams immediately to improve the site

management efficiency, reduce site construction errors

and save construction costs (Figure 7).

◎ 7. Information Query from Mobile Devices

◎ 6. Barcode labels on spools and a�aining information from scanning the barcodes

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Effectiveness in Green Project Sites

�e average duration of a project construction site is at least 3~5 years; there is normally over hundred manpower

at site, including workers and CTCI personnel. Substantial implementation of energy-saving and carbon reduction

work in a project site is extremely important, otherwise, it would lose the meaning of CTCI's promotion of green

engineering. To show respect for resources on earth, CTCI emphasizes the environment and takes issues related

to "energy saving, recycling and reuse, and green environment" into consideration with actual application in the

project site. For this reason, we added three CSR indicators in 2014, the total quantity of waste, money from material

recycling, and disposition fees of waste. CTCI intends to guide all projects under plant construction to prioritize

"the smallest impact to the earth" and to a�ain co-prosperity with the environment. CTCI also develops competition

guidelines to encourage project sites to be devoted in energy saving campaigns.

Start with Daily Tasks To Build Green Project Sites

Instructions 2013 2014 Notes

Indicators Energy

Official vehicles gasoline consumption (Liter/Indirect MH) 0.605 0.059

Machinery gasoline consumption (Liter/Direct MH) 0.0007 0.0010

Machinery diesel consumption (liters/Direct MH) 0.241 0.109

Livelihood {power Consumption (KwH / Indirect MH） 0.447 1.230

Water Resource

Livelihood Water Consumption (cubic meter water/Indirect MH) 0.003 0.016

Construction Water consumption (cubic meter water/Indirect MH) 0.149 1.122

Livelihood Wastes

Paper usage (KG/Indirect MH) 0.009 0.005

Livelihood Waste (paper) 0.002 －《－》

Livelihood Waste (glass) 0.000 －《－》

Environmental Performance Indicators for Annual Consumption at Project Sites

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Instructions 2013 2014 Notes

Livelihood Waste (Plastic) 0.001 －《－》

Livelihood Waste (Metal and aluminum cans) 0.001 －《－》

Construction Wastes

Construction Waste –Metal (KG/Direct MH) 0.014 0.067

Construction Waste –Wood (KG/Direct MH) 0.169 0.030

Construction Waste –Cement soil and bricks (Cubic meter /Direct MH)

－ 0.0002 《＋》

Others

Construction waste recycling amount (NTD10,000) － 417,545.0 《＋》

Construction waste treatment costs (NTD10,000) － 2,440,397.0 《＋》

Number of scaffolds used repeatedly (construction amount/number of construction site access)

1.075 1.356

Number of shuttering used repeatedly (construction amount/number of construction site access)

5.696 0.036

Site environmental greenness (square meters/base area) 0.015 0.000

ResourceCon-sumption

Direct man hour 2,796,791 3,770,989

Indirect man hour 1,139,365 1,977,550

Total energy consumption (MwH hours) 13,537.357 8,286.689

Total water resource consumption (cubic meter water) 36,563.7 179,866.9

Total livelihood waste production (KG) 14,345.1 10,747.9

Total construction waste production (KG) 271,696.8 951,106

Direct/indirect greenhouse gas emission (metric tons of CO2)/h 3,560.12 2,730.2

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Notes:

1. Signs instruction for 2014 measurement indicators (+): Addition (-): Deletion.

2. Indirect Man Hour (Indirect MH) = Direct Man Hour, referring to construction office workers. Direct Man Hour (Direct MH)= Direct Man

Hour, referring to construction site worker such as steel bar workers, cement workers and electricians.

3. Greenhouse gas emission (metric tons) =(Gasoline consumption (liters) / 1000x2.263)+(Diesel consumption (liters) / 1000x2.606)+(power

consumption (kwh) / 1000x0.522) (in particular, the coefficients 2.263 and 2.606 refer to the gasoline and diesel emission coefficients

announced by the EPA in 2011, 0.522 is the 2013 power emission coefficient announced by the Bureau of Energy, Ministry of Economic

Affairs).

4. Various energy consumption GJ (Giga-joule) calculations:

(1) Gasoline GJ calculation (metric tons) =gasoline consumption (liters) / 1000x0.72g / cm3x44.8

(2) Diesel GJ calculation (metric tons) =diesel consumption (liters) / 1000x0.85 g / cm3x43.33

(3) Power GJ calculation (metric tons) =power consumption (kWh) x0.0036

(4) According to the Bureau of Energy, Ministry of Economic Affairs' annual statistics report, the average density for gasoline is 0.72g / cm3

and 0.85g / cm3 for average diesel density.

5. Energy converted to power:

(1) gasoline/diesel KwH calculation = gasoline/diesel GJx277.778

(2) 1MwH=1000KwH

6. Volume converted to weight:

(1) 1 cubic meter = 1000kg.

Types of Use and Total Amount 2013 2014

Direct and Indirect Green-house Gas Emission

Official vehicle usage (liters) / (GJ) 688,991/22,224.11 117,386.7/3,786.4

Machinery gasoline consumption (liters) / (GJ) 1,978.50/63.82 4,263.3/137.5

Machinery diesel consumption (liters) / (GJ) 674,556.60/24,844.23 476,052.9/17,533.3

Power consumption (1000 kwh) / (GJ) 445,080.20/1,602.29 2,326,350.7/8,374.9

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Resource Use Distribution Chart

Total Energy Consumption (MwH hours)

Total Waste from Life Production (KG)

Direct/Indirect Greenhouse Gas Emission (metric tons of CO2)

Total Water Resource Consumption(cubit meter water)

Total Construction Waste Production (KG)

2014

2014

2014

2014

2014

2013

2013

2013

2013

2013

8,286.69

10,747.9

2,730.2

179,866.9

9,511,106

13,537.357

14,345.1

3,558.34

36,563.7

271,696.8

Note: Increased workload in 2014 added the number of people using energy and prolonged hours. The total consumption was less than 2013.

Note: Four construction sites in Taiwan were included in the 2013 measurement while 6 construction sites were included in the 2014 measurement, resulting in reduction of waste from life.

Note: workload increased in 2014 but direct/indirect greenhouse gas emission was lower than 2013.

Note: Increased workload by Talin Power Plant and Linkou Power Plant in 2014 plus the 30,000 tons of HSBC projects from Kraton Formosa Polymers Corporation and the Flare Gas Recovery System project of CPC Talin Plant that started construction this year have contributed to the increased water consumption for construction.

Note: Increased workload by Talin Power Plant and Linkou Power Plant in 2014 plus the 30,000 tons of HSBC projects from Kraton Formosa Polymers Corporation and the Flare Gas Recovery System project of CPC Talin Plant that started construction this year have contributed to the increase of construction building waste in 2014.

Project Site CSR Environmental Protection

Competition

To encourage project construction sites to devote in

environmental protection for fulfilling CSR, CTCI has

specially organized the environmental protection

competition and selected 6 items as the primary targets

of competition in order to impel all construction sites

with actual participation in environmental protection

through competition. The six indicators are described

below:

1. Project site office livelihood water consumption (used

by every person from the office per hour)

2. Project site office livelihood power consumption (used

by every person from the office per hour)

3. Official vehicle gasoline consumption (used by every

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person from the office per hour)

4. Paper usage (used by every person from the office per

hour)

5. Valued waste recovery amount (Average amount from

direct man hour)

6. Fees for commissioning wastes for handling (Average

amount from direct man hour)

In the 2014 competition results, the Linkou Power Plant

and Talin Power Plant have received progress award

and best performance award in terms of official vehicle

gasoline consumption, paper use, and construction

site office water consumption. Apart from presenting

awards as encouragement, the Construction Division

also gives awards at the year-end construction site

manager's meeting as incentives. In view of this, Linkou

Power Plant Zhi-Hou Su expressed: "We apply some

management method to execute the use of paper

and electricity. For example, we promote paperless

operations and encourage all employees to use email

for correspondence and we will not stock up too much

on paper for photocopy, so that everyone will reduce

the use of paper. Additionally, we turn off the light and

air conditioning during lunch time while the Office of

General Affairs would patrol the construction site from

time to time, so that they will take immediate actions

in case the lights or air-conditioning have not been

turned off." For this reason, Zhi-Hao Su has observed that

many employees have treated energy saving for power

and water consumption as a handy habit. They have

internalized such concept and therefore could present

a brilliant performance at the environmental protection

competition. In the future, CTCI will continue to hold

similar competitions and activities for construction

sites in an attempt to encourage all workers at the

construction site with exercise of energy saving and

environmental protection in life.

Award Indicator Winning Project Site Content

Progress Award Official vehicle gasoline consumption

Linkou Power Plant Saving 10% or higher in June and October than the same period from last year. Talin Power Plant

Progress Award Paper use Linkou Power Plant Saving 10% or higher in June than the same period from last year.Talin Power Plant

Progress Award Construction site office livelihood water consumption

Linkou Power Plant Saving 10% or higher in April and June than the same period from last year.

Progress Award Construction site office livelihood power consumption

Linkou Power Plant Saving 10% or higher in June than the same period from last year.

Best Performance Award Official vehicle gasoline consumption

Talin Power Plant Average official vehicle gasoline consumption was 0.04 liters/Indirect MH and was the construction site with the best performance for that year.

CSR Competition Award for Project Site

◎ Medals for Environmental Protection CSR competitions by project sites.

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The 2014 water consumption during the initial stage of construction was considerably higher than that of

2013 due to the increased number of new projects. The following improvement on construction water and

livelihood water was continued from the 2013 practice to reduce and effectively utilize water resources:

Livelihood Water Consumption for in Project Sites Offices

The administrative office is installed with water-saving device to adjust

the water supply pressure according to the number of staff stationed to

the site. The water storage container (water tower) is elevated and uses

difference of height (gravity) to increase water pressure, reducing the

number of pumping.

Water Consumption at Project Site

Use the pipe amp of storage tank at the site to test water pressure before

supplying water to other pipes for pressure test (The water use for 1800

metric tons of pressure test on the spherical storage tank is applied with

batched procedures for repeated use).

Water Amount Recycled from Rainwater, Reclaimed Water and Livelihood Water

Effluent flowing from ground surface or temporary waste water treatment facility is collected to the temporary

sediment facilities. The supernatant liquid extracted after sediment is used for industrial park sprinkling. This

method can reduce dust while prevent air pollution. It can also be used for concrete cooling and maintenance.

Water Resource Conservation

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For land and materials exposed without pavement, cover with dustproof cloth

and mesh to avoid dust. Monitor air quality on a regular basis.

Noise Prevention

Technique: Use drill machine (i.e. embedded foundation piles and fully

encased pipe foundation pile) to avoid the traditional hitting methods,

which not only protects the health of workers but also will not affect the

environmental quality of community residents.

Oil and Sewage Prevention

Sewage discharge project: Take consideration of designing sewage discharge pipeline with sewage storage

pool when preparing comprehensive planning (The proprietor also specifies to discharge the water from roof

gutter of CTCI to special sewage disposal tank).

Routine machinery maintenance: No replacing oil in the area to avoid dripping during the replacement process

and contamination.

Drainage canal: Use impermeable materials (i.e. concrete) for construction and prevent waste water (sewage)

from seeping into the soil and result in secondary contamination.

Machineries and construction vehicles are required to rinse off dirt using sprinkling equipment or at the car

washing pool before leaving.

Conduct environmental monitoring to monitor the effluent water quality at the project site. The sprinkling

truck will move in the project site back and forth for cleaning and prevention of dusts concurrently.

Environmental Protection Measures for Construction

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F ollowing the high development in industry and

technology, global warming and climate change

have become increasingly severe. As a member of

global village, CTCI not only constantly develops more

new energy-saving and carbon reduction engineering

technologies in professional fields but also regard

such issues as one of the key daily works inside the

headquarterss building.

It is easy to spot the various slogans regarding energy

saving in the public areas of CTCI building, seemingly

to remind us to pay little attention and any small

gesture and habit could save the earth and protect the

environment. In fact, CTCI building has recently been

completed and has shown substantial progress in terms

of energy saving and carbon reduction compared with

some older model of office buildings. Nonetheless, CTCI

does not stop here but to continue holding open and

innovative ideas by interchange experiences with other

enterprises while brainstorming to devote in the energy-

saving and carbon reduction for headquarterss buildings.

Effectiveness in Energy Saving, Water

Conservation and Power Saving for Office

Buildings

CTCI has re-reviewed the headquarters buildings in 2014

including the use of power and water by conducting

a series of improvement measures. Except for existing

energy-saving equipment such as variable-speed

air conditioner, T5 lighting fixture, and LED lighting

fixture, CTCI applies central control to manage the air

conditioning and lighting configurations in public areas

while conducting multiple improvement measures for

different electronic appliances in the building.

Electric Equipment

Improvement Measures

Elevator 1. Change elevator mode during peak hours to stop at odd or even numbered floors (previously at

upper and lower floors).2. Some elevators are shut down after working hours or on the weekend to maintain minimal operation.

Lighting 1. Replace the lighting in meeting room and escape stairs with LED lights.2. Strengthen weekend patrol to reduce unnecessary lighting.

Air conditioning 1. All office air-conditioning is collectively shut down at 8pm at night during the week and employees

may turn on the air-conditioner manually. 2. Strengthen the weekend patrol to reduce unnecessary air-conditioning.

Refrigerator Gradually phase out old refrigerators and replace with variable-speed refrigerator.

Steaming box Make announcement to remind employees to use lunch box steamer collectively.

Photocopier Entering energy-saving mode when idle for 60 minutes.

Personal computer Detect computers un-turned off at night and send email to remind users.

Water dispenser Shut off some water dispenser at night and on the weekends.

The total power consumption for 2014 was saved by 0.8% compared with 2013.

Build Energy-Saving and Carbon-Reduction Office Environment

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With regards to water consumption management,

the office water supply is directly supplied by Taiwan

Water Corporation. With the exception of large use via

automatic sensing faucets and the water conservation

via controlling water dispensing amount and dispensing

time, many water saving slogans are created to remind

employees for water conservation and contribution to

the earth.

Nonetheless, the 2014 total water consumption was still

increased by 3.7% compared to 2013. The main reason

could be the recent health promotion advocated by the

company to encourage employees to exercise after work

(i.e. aerobics and table tennis) that leads to employees

taking shower and drinking water after exercise. In

addition to reminding employees of water conservation

through constant public announcing, CTCI will continue

to search for improvement measures that can save more

water.

Additionally, with regards to paper management, the

company continues to strengthen the promotion on

reduction of unnecessary printing and double-sided

printing shall be adopted in case a printing is required, in

order to reduce the paper use of the company. Moreover,

printing access identification mechanism is added to each

multi-function printer since 2012. All employees must

use employee identification badge before receiving the

report or data while all the computers of employees were

configured to print double-sided, which not only reduces

paper use but also reminds the important of conservation

on paper use. Statistics show that the 2014 total paper

use for 2014 was reduced by 8.63% compared to 2013.

Apart from continuing the use of FSC compliant paper at

the office for the coming year, suppliers of blueprints shall

also use FSC compliant papers to reduce the damage

to rainforests. Employees will continue to be reminded

by public announcements with rigorous requirement of

using double-sided printing as well as the recycling of

single-sided paper.

The calculation of greenhouse gas emission is based

on the proprietary calculation and according to the

calculation method announced by the EPA and Bureau

of Energy, Ministry of Economic Affairs. The 2014

headquarters building has generated 3,318.91 metric

tons of CO2, down by 0.76% compared to that of 2013.

YearTotal power

consumption (kwh)

Heating value conversion

number (GJ)

Power consumption indicator (kwh/ping)

EUI(kWh / m2.yr)

Power consumption

reduction rate (%)

2012 6,163,407 22,188 603.99 147.3 2.3

2013 6,311,179 22,720 618.48 150.8 -2.4

2014 6,258,491 22,530 613.31 149.6 0.8

Notes:．Power consumption indicator = total power consumption (kwh) ÷ ping size (10204.4)．Power consumption reduction rate ＝ 1－ (current year power consumption indicator ÷ previous year power consumption indicator). ． EUI: Power consumption reference indicator for building users. Bureau of Energy, Ministry of Economic Affairs announced office buildings (including

indoor parking lot) with average value of 186.2 kWh / m2.yr． Headquarters office area of use 33733.60m2, parking area 8112.31m2 and a total of 41845.91m2

Headquarters Building Power Consumption in Last 3 Years

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Headquarters Building Greenhouse Gas Amount Statistics in Last 3 Years

Notes:Direct and indirect greenhouse gas emission = 【official vehicle gasoline consumption (liters) / 1000*2.263】+【power consumption (kwh) / 1000*0.522】, in particular the coefficient 2.263 was cited from the EPA's greenhouse gas emission coefficient management table. The Bureau of Energy, Ministry of Economic Affairs announced electricity emission coefficient for 2012 was 0.532 and 0.522 for 2013. Greenhouse gas emission reduction rate ＝ 1－ (current year direct and indirect greenhouse gas emission ÷ previous year direct and indirect greenhouse gas emission)

Headquarters Building Paper Use in Last 3 Years

Notes:． Recovery rate: current year paper recycled amount ÷ current year total paper use ． Paper use reduction rate = 1- (current year total paper use ÷ previous year total paper use). ． 2012 adoption of double-sided printing and access identification mechanism has substantially reduced paper use.

Year Total water consumption

(cubic meters)

Average number of people per office building (people)

Water consumption indicators

Water consumption reduction rate (%)

2012 18,063 1,790 10.083 21.63

2013 21,002 1,945 10.780 -6.9

2014 22,619 2,024 11.179 -3.7

Headquarters Building Water Consumption in Last 3 Years

Notes:． Water consumption indicator = Total water consumption (cubic meters) ÷ office building average number of people (this method has been used for

calculation standard since 2014). ．Water consumption reduction rate = 1 – (current year water consumption indicator ÷ previous year water consumption indicator) ．Company waster consumption consists of livelihood water consumption and office water consumption. This water is discharged to the drainage directly

and the water consumption recovery rate is 0%.

YearTotal paper use

(KG)Total paper recycled

(KG)Recovery rate

(%) Paper use reduction rate

(%)

2012 81,617 23,370 28.6 19.9

2013 107,958 26,540 24.6 -32.3

2014 98,644 23,310 23.6 8.63

YearOfficial vehicle

gasoline consumption (liters)

Power consumption

(kwh)

Director and Indirect Greenhouse Gas Emission

(metric tons CO2)

Greenhouse gas Emission reduction rate (%)

2012 20,475 6,163,407 3,349.92 2.4

2013 22,073 6,311,179 3,344.39 0.17

2014 22,968 6,258,491 3,318.91 0.76

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To implement energy saving and carbon reduction

through daily work, the CTCI headquarters building

has developed the following measures to remind the

employees to develop habits in energy saving and carbon

reduction through routine promotion and notes.

1. Air conditioning connected with lighting switch so

that air conditioning will automatically shut off when

lighting is turned off.

2. Public area is configured for lighting switch modes

during different time slots.

3. Promote Office 5S management to carry out energy-

saving behavior competition each month.

4. Use broadcast to remind employees to turn off

unnecessary lighting and air conditioning.

5. All affiliated enterprises of the group in Taiwan and

abroad shall respond to the Earth Hour lights-off for

energy-saving and carbon reduction each March.

6. Routinely remind the employees to develop energy-

saving habits and establish corporate culture in energy

saving.

7. Security guards shall patrol the office at night and turn

off lighting and air conditioning.

8. Configure the temperature for air conditioning

collectively according to the outdoor temperature of

the season and prepare into records for review and

adjustment.

9. Shut down some elevators after work or on the

weekends.

10. Routinely check the amount of water dispensed by the

faucet in the restroom and the water dispenser in staff

room.

11. Recycle and reuse the water from the outdoor viewing

pond.

12. The building rooftop is installed with rainwater

recycling system to provide use for the outdoor

plantations.

13. Prior to washing the water storage tank, shut down the

inlet valve through concise timing according to the

current water storage and estimated amount of water

consumption daily to reduce water release (currently

the external water inlet is suspended in 36 hours

before washing the water tank).

14. Replace the lighting in recycling room, staff room and

public areas with LED lighting.

15. Use email to replace paper for data transmission. Set

up document output in double-sided printing and

encourage the use of recycled paper.

16. Adopt e-official document and various E-Flow

authorization processes to reduce the use of paper.

17. Request paper suppl iers to provide FSC mark

compliant paper.

Except for the aforementioned conducts already adopted,

CTCI is estimated to develop more innovative issues in

2015 to further implement energy saving and carbon

reduction:

1. Install sensing lighting in public areas such as the staff

room, stairs, and parking lots.

2. Consult with relevant professional suppliers for energy

saving on telecommunication computer room and IT

equipment.

3. Draft the statistics on employee going to work and

getting off work, business trips and other indirect

methods that generate greenhouse gas.

4. Organize energy-saving proposal for the entire

company in an attempt to brainstorm for more energy-

saving related creativity through the wisdom of more

people.

Energy-Saving Measures for CTCI Headquarters Building

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Transform Waste into Resource

W aste disposal in Taiwan was mostly carried out

in the form of random littering before 1984 until

the Government promulgated the "Urban Waste Disposal

Program" in 1984 with guidelines mainly emphasized

sanitar y landfi l l . By 1991 the waste incinerat ion

technology became increasingly mature and hence the

Executive Yuan regarded waste incineration treatment

as one important objective at the technology meeting

by developing the "waste incineration supplemented by

landfill" disposal policy for waste. At the same time, CTCI

could cover the design, construction, commissioning,

operation, and maintenance of the incineration plant

as well as collection and transportation of waste.

CTCI is an integrated upstream to downstream waste

disposal service provider, in accordance with corporate

pr inciples "professional ism, integr ity, teamwork ,

innovation" toward the flue gas, waste water, bottom

slag, and fly ash generated by incineration process with

proper monitoring and detection mechanism, and

pollution prevention measures. Apart from fulfilling the

responsibility in proper waste incineration treatment, also

utilizes the heat generated from waste incineration to

maximize the benefits of each ton of waste. On the other

hand, by adopting the following strategies and behaviors

in the achievement of energy saving and carbon

reduction autonomous management, resource recycling

and reuse, and environmental education, as described

below:

Realize the Concept of Environmental Protection in Life

The business division responds to the concept and

actions of 5R (Reduce waste, Recycle resources, Repair

usable objects, Refuse to use product nonconforming

to environmental protection, and Reuse) through the

following examples:

(1) Transmit data in electronic forms whenever possible

to reduce paper use. For example, for the monthly

report from each plant that requires printing, bonding

and postal mail to the headquarters, we scan the

monthly report into PDF file and send to the company

via email for review, which not only saves photocopy

and postal fees but also reduce the storage space.

(2) P r o m o t e a n d c h o o s e g r e e n p r o d u c t s w i t h

environmental protection marks such as cartridges

and energy-saving products.

(3) Replace with efficient lighting fixture and improve

the lighting control modes. For example, the 400W

mercury-vapor lamps for Xindian waste incineration

plant's reception hall were replaced with 10 energy-

saving light bulbs with 75W to save 14,235 kWh per

year. In the example of Keelung waste incineration

plant , the replacement of emergency escape lighting

with 200 LEDs can save 15,312.45kWh.

(4) Install maintenance management information system

to effectively control the life cycle of equipment and

be able to immediately replace key components,

extending the life cycle of equipment.

(5) The waste oil and waste materials produced from

operation and maintenance were central ized,

categorized and then reused.

(6) Phase out and replace with new air conditioner. In the

example of Xindian waste incineration plant, three

air conditioners were replaced in 2014, saving annual

power consumption by 13,688 kWh.

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Reduce Consumption and Emission during Incineration Process

In recent years, the world is discussing the impact

brought by climate change to the earth due to the

effects of global warming. In the midst of such critical

moment and as the leading enterprise in environmental

protection and also the industry for greenhouse gas

emission, the wholesale electricity sale for waste

incineration plant under the operation of the CTCI

Environment & Resources Business Operations (ERBO)

in 2014 was 1,073,072.45 MWh (as shown in Table 1). Per

Taiwan Power Company and Companhia de Electricidade

de Macau announced publicly the average monthly

electricity consumption per household in 2014 was 298

kWh and 341 kWh respectively, which supplies electricity

to about 295,000 households each year. Due to the

reduction of output power converting to CO2, about

543,000 tons of CO2 are reduced based on the calculation,

which is equivalent to the reduction of approximately

214,000 metric tons of coal (calculated by the 2.5349

metric tons of CO2 produced by one metric ton of coal)

and also equivalent to the 1 year of CO2 absorption by

1,396 Daan Forest Parks (calculated by 1 year of CO2

absorption of 389 metric tons by one Daan Forest Park).

The total waste going into the 24 incineration plants in

Taiwan was 6,420,400.01 metric tons in 2014 while CTCI

ERBO operated the 8 incineration plants in Taiwan alone.

The total amount waste going into these 8 incineration

plants in 2014 was 2,129,022.23 metric tons with a total

of 2,106,576.23 metric tons processed. The wastes going

to the plant under the category of municipal solid waste

accounted for 1,649,271.31 metric tons while the general

industrial wastes accounted for 479,750.92 metric tons,

equivalent to the waste amount produced by 5.24 million

people in one year (calculated according to the 0.863 KG

of waste produced per person per day announced by

the Department of Waste Management, EPA of Executive

Yuan in 2014) and the industrial wastes produced by

17,000 plants.

The total waste going to the two waste incineration

plants in Macao in 2014 was 457,371 metric tons. In

particular, the general wastes accounted for 447,591

metric tons and the industrial wastes accounted for

9,780 metric tons. The general wastes of all Macao areas

are within the scope of service by CTCI's ERBO, serving

630,000 people in population.

Additionally, CTCI's ERBO has promoted proposals of

improvement system since 2009 and encourages the

employees to propose safer, more effective or energy-

saving improvement solutions for the operating

environment, equipment or methods. Employees will

be granted with prizes as incentives once their proposal

has been accepted and approved to be constructive

proposals.

In the example of Tainan Chengxi waste incineration plant

Branch , 112 cases have passed review for constructive

proposals between the promotion in 2009 and 2014, with

an approval rate of 75%. In particular, the installations of

time relay control to the reception hall and the lighting

loop of boiler house as well as the modification to the

lighting loop in the mid to low voltage switch room

(as shown in Figure 1 and Figure 2), saving power by

97,016 kWh per year and reducing CO2 emission by 50.6

metric tons per year. As for air-conditioning system,

temperature switching control has been installed to

the air-conditioning box of low-voltage switch room,

changing the main transformer and mid to low voltage

switch room to variable-speed control and chilling water

main unit (as shown in Figure 3 and Figure 4); saving

power consumption by 242,086.8 kWh per year and CO2

emission by 126.4 metric tons per year. The improvement

on energy saving, water conservation and improvement

on power saving through multiple processes and the

reduction of secondary pollution has been awarded by

the Bureau of Energy, Ministry of Economic Affairs in 2014

with the special honor in Energy Saving Excellence Award

(as shown in Figure 5). The Division of Environmental

Resources wil l continue to work towards carbon

reduction for the earth, provide quality environment and

convenient life, leaving sustainable and beautiful clean

land for our later generations.

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Item/Plant Electricity sales (Mwh) Electricity sales x 0.522 kg/kwh=reduction of CO2 emission (kg)*Electricity sales x 0.4kg/kwh = reduction of CO2 emission (kg) (Macao)

Keelung 91,676.48 47,855,122.56

Xindian 68,277.70 35,640,959.40

Shulin 107,440.90 56,084,149.80

Taonan 232,348.50 121,285,917.00

Miaoli 75,170.50 39,239,001.00

Houli 150,007.10 78,303,706.20

Wurih 139,783.89 72,967,190.58

Tainan 65,792.88 34,343,883.36

＊ Macao 142,574.50 57,029,800.00

Total 1,073,072.45 542,749,729.90

2014 Waste Incineration Plant Electricity Wholesale Table

◎ 1. Boiler house installed with time relay

◎ 2. Installing time relay control to the lighting loop of the reception hall

◎ 3.Replacement of main unit of chilling equipment

◎ 4.Change Mid to Lower-Voltage Switch Room into Variable-Speed Control

◎ SESC Houli Incineration Plant certi�ed with "Energy Saving and Carbon Reduction Action Badge" from Environmental Protection Administration (EPA).

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◎ 5. 2014 Tainan plant awarded with Energy Saving Excellence Award

◎ 6. EPA Audit and Evaluation Excellence Award.

Reduce Secondary Pollution, Energy Saving and Water Conservation

Currently the waste water from municipal solid waste

incineration plant handled by CTCI's ERBO reuses boiler

waste water, process waste water, cleaning waste water,

livelihood waste water, and car washing waste water

for the plant, attaining "zero waste water discharge." In

the example of Houli incineration plant , the plant has

participated in the energy saving evaluation held by

Ministry of Economic Affairs in 2013 for the execution

of multiple energy saving behaviors and has been

awarded by the MOEA with a trophy in "Energy Saving

Elite with Excellence and Innovation." At the same time,

Houli plant participated in the energy saving and carbon

reduction mobile mark campaign held by MOEA in

the same year and received the "2013 Energy Saving

Mobile Mark Enterprise Category B (manufacturing site)

Excellence Award" from the EPA in December 2013. The

main energy saving and carbon reduction measures

include lighting and air conditioning management,

water use management, plant equipment energy-saving

improvement and installation of e-vehicle charging

stations. In 2014, the plant has received the special award

from the Executive Yuan EPA Audit and Assessment

Award – Energy Utilization Award (as shown in Figure 6).

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Promoting Friendly Community and Environmental Education Facilities

CTCI's ERBO has long been committed in the operation

of various environmental facility and technological

services, exerting efforts in environmental sustainability.

Nonetheless upholding to the philosophy of pursuing

perfection, ERBO appeals in "environmental sustainability"

and "environmental education" to promote facility

improvement and social environmental education.

Environmental education emphasizes environment

related knowledge, attitude, and technology. It aims

to implement sustainable environment. Environment

education comprises six core learning spirits, including

" n a t u r a l re s o u rc e p re s e r v a t i o n ," "e nv i ro n m e n t

management," "ecology pr inciples," " interact ion

and interdependence," "environment ethics," and

"sustainability". The urban waste incineration plant

operated by ERBO integrates with local culture and

history by designing curriculum for different targets by

the way of observation with eyes, perception by heart,

and listening through ears to learn and the curriculum

makes participants to understand the impact of wastes

on the environment. The characteristics are described in

the following points:

(1) Integrate local culture and natural characteristics to

design environment education curriculum.

(2) Design general education and professional curriculum

for different group demand.

(3) Integrate with native plant around the facility, existing

pools and establish ecology education zone.

(4) P lant sed iment waste through regenerat ion

presentation.

Apart from proactively organizing multiple environment

education activities and apply for certification in the

area where the incineration plant is located, CTCI

also holds multiple household, neighborhood street

cleaning, natural ecology and environment education

campaign observation in other counties and cities,

resource recycling and environment ecology education

observation, low-carbon LOHAS environmental summer

camps, as well as other educational and interactive

activities for the residents.

Following the Tainan Refuse Incineration Plant-Chengxi

Branch passing the cer tif ication for environment

education facility premise, there have been 78 sessions

of environment education held with a total of 3861

participants, making Tainan Refuse Incineration Plant-

Chengxi Branch the first incineration plant among the

five municipalities to pass certification (as shown in

Figure 7). The Keelung Recycling Plant and Miaoli BOT

Incineration Plant under the operation of SESC in 2014

have both passed the certification for environment

education facilities.

In particular, the Keelung City Recycling (Incineration)

Plant integrates local culture, ecology and geographic

evolution of the premise by developing a curriculum

plan on "Fantasy Journey of Incinerator," allowing

participants to perceive the beauty through five senses.

The participants are able to understand the striking

environmental change caused by human through the

evolution of waste disposals while they can also perceive

the heat from burning waste as well as understand how

thermal energy transforms into kinetic energy personally

(as shown in Figure 8). In spite of the imperfection

with the incineration plant, there is certain value for

its existence. For example, the sanitary landfill is also

restored into beautiful park and wetland due to the

opening of the incineration plant expects participants to

reflect on their own behaviors through the observation

on waste disposal process in addition to save energy,

resource and protect the environment through waste

reduction, classification and recycling.

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◎ 7. Tainan Refuse Incineration Plant – Chengxi Branch

◎ 8. Keelung Plant Personnel Experiencing Temperature through the Flare Peeping Holes

◎ 9. Miaoli Plant organizing Zhunan Ecology Wetland Environmental Protection Education Camp

◎ 10. Emergency Response and Drills for Personnel Falling inwaste bunker

Simple and lively methods, such as theme exhibition

designs and the assistance of hardware/software, are

applied in the Miaoli BOT waste incineration plant,to

help learners understand how waste disposal issues in

Miaoli County are tackled under the principles/objectives

of "stabilization," "sanitation," and "resource". At the

same time, the participants can understand the nearby

abundant ecology and environment. Miaoli plant designs

5 theme-based figures and each of them comes with

different personality and expertise, giving them different

mission in environmental protection and leaving people

impression through interactions. The curriculum plan

also designs three courses in "everyone loves green

dream works," Puhas Little Helper" and "Recycling and

Restructuring" to carry out teaching and interaction,

so the participants will understand the advantage and

disadvantage of the incineration plant as well as to

prepare for environmental protection at all time and

contribute efforts for the benefits of the earth (as shown

in Figure 9.)

Additionally, the Keelung City Recycling Plant was

invited by the Occupational Safety and Health Center

in Northern Taiwan to deliver a seminar on cleaning

personnel safety and personnel response and drills for

falling into the storage pits in April 2014 (as shown in

Figure 10). There were nearly 100 people participating in

the activity and the actual drills through film propagation

also teach the cleaning staff with operational safety in an

attempt to change the personal behavior of participants

through different promotional methods.to demonstrate

our concern for the earth and environment as well as the

safety and health of personnel.

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In the process of becoming the most reliable global engineering

service provider, CTCI Corporation also profoundly perceives and

acknowledges the efforts of all group employees for such growth while

the support and recognition of different communities are also the

key force driving CTCI to move forward. For this reason, CTCI not only

appreciates but also spares no efforts in caring for the employees and

giving feedback to the society through actual actions. CTCI asks itself

to care for this land by promoting various social charity events with full

efforts.

Hence, this section will describe CTCI's actual behaviors and future

prospects in employment care and fostering, relation with proprietor

and Vendors and social charity commitment through three dimensions,

including "Building a Healthy and Happy Work Environment," "Building

Friendly and Harmonious Partnership" and "Professional Participation

and Social Services."


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Building Healthy and Happy Work Environment

T he key to a company's sustainable management

is the building of quality environment for talent

development. C TCI not only develops Individual

Development Plan for each employee in terms of talent

fostering but also injects efforts in online learning

curr iculum, mentor & Mentee system whi le the

establishment of Knowledge Management (KM) system

facilitates the legacy and sharing of knowledge.

Moreover, CTCI is also committed in building healthy

and friendly workplace by establishing a health center

for physicians on-site and nurses health promotion

services. The health center designs a wide diversity of

health promotion activities and advocate correct health

knowledge to employees. Moreover, CTCI also actively

encourages club activities for employees to get together

and bond with each other, jointly creating a healthy and

happy workplace that encourages learning & sharing.

Fostering Talent

CTCI is committed in fostering outstanding talent.

The company recruits newly graduated students in

different fields, including mechanical, electrical, chemical

engineering, civil engineering, and international trade.

In terms of the strategy of talent selection, the company

does not recruit talents through poaching but expects

to provide complete education and training courses, and

foster engineering students who just graduated from

school. Due to its valuation on the breadth and width of

talent fostering with emphasis on continuous learning

and growth in employees, the recent talent fostering plan

of CTCI gradually shifts toward internationalization while

strengthening employees' engineering competency,

management capacity, language proficiency, and macro

international horizon.

Moreover, CTCI offers services to customers all over the

world; to implement its corporate social responsibility,

CTCI also expects to share it professional knowledge in

engineering fields with local students. For example, CTCI

(Thailand) Co., Ltd. signed a cooperation memorandum

for internship project with IRPC vocational school on

August 22, 2013 to provide 6-month internship for

14 local students. The training content consists of

design and construction work and more young people

interested in engineering can access this professional

field through this learning and growth platform.

Individual Development Plan (IDP) Tailored for

Employees

To provoke the passion for work in every employee

and in consideration of the need for the organization

to satisfy employees with self-realization, CTCI started

promoting Individual Development Plant (IDP) for all

employees since 2014. Each employee may develop

different learning development plant according to

the corporate development, competency required

for the function and individual development intent,

which urges the employees to increase their own KSA

(knowledge, skill and attitude) while employees can

develop training, experience, disciplines, and refinement

based on their own strength and weakness through

communication with the coach. Consequently the overall

competitiveness in employees is enhanced to reach win-

win situation between the employees and the company,

which forms an unconstrained work environment with

infinite development.

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Mentor & Mentee System Keeps New Recruits

Company

CTCI believes that the fostering of talents require both

internal and external considerations. With regards

to external talent fostering, CTCI not only provides

scholarship to students of engineering department

with excellent academic performance and in poverty as

incentives but also offers internship opportunities for full-

time students to accumulate hands-on experience in

work. During the internship, students working in CTCI will

receive help from mentor served by senior employees,

so that interns can possibly learn the richest industrial

knowledge in just two months. Moreover, CTCI also

discusses the possibility of internship credits with the

department of engineering in relevant universities and

projects to contribute efforts in fostering engineers for

Taiwan.

Online Courses Provide Zero-Distance Learning

The internal cultivation curriculum of the company offers

physical courses from time to time and establishes an

online training platform on the Global Training System

so that employees at home or abroad could all attend

courses online via conference in synch or non-synch

online courses, without the constraint of time and place

and accomplishing the training objectives of "ubiquitous

learning." Apart from courses in professional fields,

employees could also manage individual training status

by checking personal learning status at any time and

helping supervisors to understand the training status of

their subordinates. Statistics show that over 1.2 million

people have used the Global Training System (GTS) online

since its launch in June 2009 and as of December 2014.

I was acquainted with CTCI during my junior year at

the Department of Civil Engineering in National Central

University.

In the summer of my junior year, I wanted to accumulate

my own practical experience and so I applied for part-time

work at CTCI. Although I only worked there for 2 months,

I have learned many things during that period and I also

discovered much knowledge about engineering from

the CTCI KM. Even though I was a part-time employee

for the summer, the senior engineers and supervisors all

assisted me to perform my duties with patience. They

even let me receive education and training with the new

recruits. I could perceive the tremendous efforts of large

corporations to foster talent.

Frankly speaking, after working part-time in CTCI for 2

weeks during summer vacation, I had made up my mind

to become a full-time employee of CTCI after graduation

because not only could I contribute what I have learned

to CTCI, I will have the opportunity to understand the

overview of engineering circle and participate in different

engineer ing c yc les as a c iv i l

engineer due to the division or

work and shift-based systems of

the company. I have been looking for such work nature

and environment.

Finally, I have passed the test and became a new

CTCI recruit in September 2014. The company offers

education and training as well as mentorship for new

employees, which has stabilized us emotionally. Under

the leadership of senior engineers, we eventually entered

the engineering field through simulated cases and we

received abundance of experience. I am also able to

develop relation with colleagues of the same session since

we attended classes together. Moreover, the company

offers various association activities and curriculum for

employees to get in contact with other employees from

different departments and of different age after work. We

are able to increase knowledge and learn from each other.

I feel very fortunate to learn and grow with many partners

from the engineering field.

CTCI is the Best Place for Engineers to Learn and Grow CTCI Civil & Building Engineering Dept., Hsing-Yu Chen

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The company act ivates the onl ine profess ional

competency assessment system in every half year since

2012 for the average employees and the supervisor will

assess the employees. The "Reaching Rate of Enhanced

Competence is established for the annual quality

objectives " to routinely review the promotion of talent

quality. The "Reaching Rate of Improving Professional

Competency" for 2014 is projected to be ≧ 90% while

the ReachingRate of Improving Professional Competency

for 2014 has increased from the 92.2% to 94.4% and from

the first half year to the second half year. All departments

will develop learning development plant for employees

with gap in professional competency. For deficiency

in professionalism, employees are encouraged to take

external courses or invite CTCI internal instructors for

offering courses, in addition to evaluating the students'

learning status and development.

The management training for supervisors emphasizes

management skills and hence the company offers

courses in international corporate management,

organizational behaviors and management, financial

management, customer relation management, innovative

management, commercial negotiation, subordinate

guidance, comprehensive communication. For most

CTCI employees graduating from engineering colleges,

these skills are required by the workplace and can solve

organizational issues as well as contributing considerable

help to the society.

Apart from the training courses held by the company

and the participation of external training curriculum, the

company encourages employees to upgrade and pursue

excellence, while the company offers domestic and

overseas on-the-job training, recommending workers to

purchase advanced study with the domestics and foreign

universities according to the work nature. CTCI also pays

for tuition and expenses. By the end of 2014, 42 people

have been recommended for pursuing EMBA and have

graduated.

Strengthen Management Capacity through

Senior Management Training Curriculum

CTCI firmly believes that only the establishment of

corporate culture with continuous learning will improve

the corporate competitiveness. The company has re-

examined and planned the supervisor management

training since 2012 and has comprehensively initiated

new supervisor management training starting in March

2013. Moreover, an offsite meeting has been held in every

two years since 2008 , where supervisors strengthen their

leadership through competition, teamwork activities and

case study in addition to communicate and exchange

opinions on the future development and strategies

of the company, pushing CTCI to progress towards

sustainability.

The senior management has perceived abundance

of rewards since the holding of offsite meeting and

could profoundly perceive the importance of strategy

formulation and team consensus. Hence the office

meeting wil l be held each year star t ing 2015 to

upgrade leadership, increase corporate identify towards

the development strategy and to inject brand-new

leadership concept and ideas through the enlightenment

of external instructors.

In terms of the actual numbers, the recent investment

made by CTCI in 2014 is nearly NT$13.33 million and

nearly 241,000 labor hours on employee education and

training. The average training hours per employee also

reach 73.6 hours (the average training hours per female

employee is 68.97 hours and the average training hours

per male employee is 74.95 hours).

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Year 2012 2013 2014

Rank Sex PersonsAverage Training

Hours/PersonPersons

Average Training Hours/Person

PersonsTraining Hours/

Person

Vice President and AboveM 21 9.8 24 30.33 28 24.61

F 0 - - -

Chief Engineer/Senior SPECIALIST I

M 37 0.8 42 43.26 47 10.36

F 0 - - - 1 42.00

Deputy Chief Engineer/Senior Specialist

M 71 8.3 71 36.10 92 29.24

F 4 36.5 4 54.00 5 36.60

Associate Chief Engineer/ Senior Specialist III

M 256 26.9 256 55.70 251 42.73

F 17 21.5 20 52.95 20 49.45

Principal Engineer/ Specialist I

M 248 16.3 258 38.80 254 38.04

F 30 17.3 34 48.94 35 47.94

Senior Engineer/ Specialist II

M 229 19.6 260 42.47 264 42.09

F 34 21.7 41 53.78 39 51.77

Engineer I/ Specialist IIIM 315 20.6 348 45.28 406 45.37

F 61 20.8 71 46.24 82 46.67

Engineer II/ Specialist IVM 411 22.5 434 40.23 473 40.97

F 142 25.0 161 39.86 169 39.78

Engineer III/ Specialist VM 505 202.4 617 234.68 477 241.41

F 148 144.1 174 225.74 145 234.70

Assistant Engineer/ Specialist VI and others

M 29 5.1 164 5.01 239 5.80

F 53 40.6 249 7.44 243 6.07

Employees Training Hours for the Past 3 Years

CTCI offers various education and training channels inside

the organization in addition to sending internal senior

engineers and senior managements to serve as industry

lecturers at the department of college of engineering in

universities to share professional practice of engineering

with the academia.

In the past 2 years, the engineering-related colleges and

departments in university now offer engineering related

courses. CTCI passes down the management skills of cross-

border project for student through the rich engineering

experience of CTCI, in order to foster global talent who

can respond to taking challenges. For example, CTCI offers

"Cross-Border Project Management" with the College of

Engineering at Tatung University and the "Practical Design

for Factory Equipment" offered by the Dept. of Mechanical

Engineering at National Taiwan Ocean University. On the

contrary, CTCI also offers visit and internships for students

in engineering related departments, and colleges s to

bring closer the industry to the academia.

With regards to scholarship, CTCI offers poverty grants

for students living in poverty with interests to study

engineering related major so that the students can study

without worries. CTCI offers 12 scholarships starting

in 2011 with each students receiving grant between

NT$40,000~NT$50,000. This policy will continue and

expand in the future.

Active Establishment of Industry-University Cooperation

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Knowledge Management System,

Enhancement of the Culture of Knowledge

Sharing

It is the 9th year ever since the Knowledge Management

System (KM) was launched in February 2006. With the

great support from the company and staff, KM plays a

vital role in CTCI global operation, serving as a borderless

arsenal that provides real-time responses. The staff in

the group may utilize this knowledge treasury through

internet at any time and any place whether they are in

the office, during a business tour or at abroad. Currently,

KM has been expanded from C TCI Headquar ters

to its subsidiaries both home and abroad, such as

E&C Engineering Corporation, Advanced Control &

Systems Inc., Resources Engineering Services Inc., Sino

Environmental Services Corporation, Jingding Engineering

& Construction Co, Ltd., Shang Ding Engineering &

Construction Co., Ltd., CTCI (Thailand) Co., Ltd., CTCI

Machinery Corporation., and CIMAS Engineering Co., LTD.

The system not only provides the platform of knowledge

sharing and useful work-related know-hows but also

establishes project related documents and experiences

shared in the KM system. Moreover, in view of the fact

that much knowledge cannot be stored in documents

or written form, a new website design and discussions

in social network can retain the engineering professional

knowledge of intrinsic "workers." In addition, the staff

Q&A mechanism (the EXPERT Function) inside the group

allows the sharing, discussion and passing-down of

professional knowledge.

To enhance the handiness and create a better user

experience for the colleagues, the new KM has been

revised and upgraded planning since 2011. Apart from

the extension of existing functions, new KM strengthens

interactive association and knowledge social network

functions. The smooth operating platform allows

colleagues to make query through cross-organization,

system and fields. The effective management and

implementation of corporate knowledge documents

also brings the document base into maximal play. At

the same time in cooperation with the annual review on

KM, the knowledge fields are increased to 54 according

to actual demand. With regards to the details of project

management items, the system is consolidated into

132 professional items that clearly represent each

professional scope. Moreover, 193 knowledge experts

were re-collected and expanded, providing a fast window

for employees when asking from experts, fulfilling

core base and collecting base on core competency,

and collect more intrinsic work knowledge from the

experts. Meanwhile, the Expert function was launched

in 2014, providing a mechanism for users to consult

with professional technical experts when needed. The

collection of questions raised by employees together

with answers provided by internal specialists help retain

the professional knowledge.

In 2014, CTCI has particularly increased the knowledge

f ield of Product Management in the knowledge

document base by categorizing the professional

knowledge and categorizing the product types. After

the closing of the project, the knowledge documents

with value of repeated use during ongoing process are

uploaded for sharing. Moreover, CTCI IT Division also

designs the new KM function, myVideo-KM, in 2014, in

attempt to theme-based learning related knowledge

document, teaching materials and multimedia learning

platform for employees to study independently and

increase knowledge. The function is to provide new

employees with independent learning of departmental

knowledge through film viewing, similar to online

learning but through strengthened video streaming

technology, providing users with better learning effect.

The new function is still under testing and is scheduled

for launching in 2015.

The KM System is divided into five major function

modules (as shown in the Figure below). The knowledge

document management system and k nowledge

social networking emphasize on the establishment of

knowledge-sharing platform while the core competency

system and interpersonal network emphasizes on the

deployment of knowledge network. The integration

of five major KM function module and string search

functions form an important platform of management

and knowledge sharing.

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Modules Functions and Benefits

1. Knowledge Document Management System (Knowledge)

To organize knowledge database hierarchically and systematically for a convenient knowledge access.

2. Core Competence System (Expert)

The experts listed are categorized according to each engineering field, so that the staff can find the right person to seek advice from as soon as possible. Also, through the SOS mechanism, their questions can be answered by experts from different fields.

3. Knowledge Community System (Community)

The Knowledge Community is formed by different discussion groups, aiming to boost problem solving, creativity and serving as a platform for innovation, sharing and updates of knowledge.

4. Social Network (Networking)

We utilize the concept of relational searching, starting from individual names, one can find the enquired person's publication, projects took part in, members of the project, and trainings received. Thus, Social Network is a useful tool to know better about talent in the company.

5. Search Engine (Fast Search) Through keywords search, we can achieve cross-fields and cross-system search. Since each category is iconized and can be singled out for particular search, the searching effect is greatly enhanced.

Connect

Connect

Connect

Connect

Fast SearchKnowledgeShare

KnowledgeNetwork

Connect

Knowledge

Community

Social Network

Expert

Associate

◎Five Major Modules of New KM

Moreover, KM can be used to link to the demand-supply

chain, construct global competition network, and open

some contents of the new knowledge management

system of the company to affiliated persons, including

customers, proprietors, major contractors, partners,

upstream vendors, downstream vendors, and schools.

KM can be used to share the cumulative engineering

experience of C TCI over the past 30 years while

enhancing the corporate competiveness to grow with

customers and partners together.

In terms of utilization, about 25.26% in average of

company employees use the said system monthly. As

for 2014, 39 people with 151 visits in average use the

Knowledge Management System per weekday, while

about 597 documents are downloaded per weekday.

Total Visitors

Total Visits

Documents Viewed(Article)

798 3,079 12,164

Average Monthly KM Use Statistics in 2014

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Employee Care

For CTCI, only employees owning health and happiness

will solidify and improve the company growth. For this

reason, caring for body, mind and soul of employees is

highly valued by CTCI. Apart from promoting different

activities and measures of body health, CTCI is also

committed in promoting club development to provide

the busy employees with a soothing and relaxing

channel for the body, mind and soul. Moreover, we strive

to protect the rights of employees to bring together

the employees so they could inject enthusiasm in

friendly workplace and thereby increase work efficiency.

Meanwhile, by caring for employee, we will create a

momentum for the growth of the overall company

operation.

Creating a Friendly Workplace and Promoting

Good Health

In 2011, CTCI established an inter-departmental health

promotion working group. Led by the director of the

Executive Management Office as the coordinator, the

team jointly plans and executes health promotion tasks

to establish a health workplace and assist colleagues to

focus on proper health concepts.

1. Establishing a Health Center

To create a better environment and healthy workplace,

CTCI officially established a "Health Center" on the

10th floor of HQ building in August 1, 2013. During the

opening ceremony, President Sheu said: "Employees are

the most valuable asset." While providing the working

partners better and appropriate health care resource

and health care, the company will also strengthen the

"Employee Care" aspect of CSR, allowing everyone to

work happily and strive in this high-quality and healthy

work environment.

2. Providing Health Services

Since 2012, the company has star ted to provide

physician on-site services. CTCI established the health

management system in 2014 to filter the employees

with abnormal health examination results using

system analysis according to the preventive concept

of preventive medicine medium prevention and to

provide early medical intervention to avoid disease

occurrence or deterioration. CTCI also conducts health

care, health monitoring, case management and service,

environmental safety and health based health promotion

plan for employees of different groups. Moreover, CTCI

also contact external resources as Taipei City Health

Bureau, Shihlin Health Service Center, cooperative clinics,

hospitals, etc. to build up a comprehensive health care

network and a platform providing colleagues with

medical information.

(1) Physician on-site services: Among the services

offered are general physical examination, medical

examination repor ts and commentar y, health

consultation, suitable labor allocation, and on-

site visits, in addition to participating in health

management and activity planning guide. This service

information is announced through company website

and will be orally announced the date of physician on-

site services during the health seminar as well as the

displaying of relevant information on elevator multi-

media. A cumulative number of 280 people had used

the service in 2014, and 48.6% of them had consulted

for general diseases. In 2015, CTCI will prioritize the

arrangement of consulting services for patients of

chronic disease and colleagues with abnormal health

examination results. If necessary, the company will

◎ CTCI establishes a health center and o�ers registered nurses and physician on-site services.

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♀♂ ♀♂

Health Consultation Note 3

9945.62%

General Trauma Note 1

219.68%

General Disease Note 2

13648.6%


8137.33%


12645%


186.4%

2013 Total number: 217 2014 Total number: 280

Health Consultation General Disease General Trauma Female Male

13461.75%

8338.25%

10637.9%

17462.1%

♀♂ ♀♂


16028.27%


22339.4%


26730.5%


16929.86%


29433.6%


31435.9%

2013 Total number: 566 2014 Total number: 875

Health Consultation General Disease General Trauma Female Male

25344.7%

31355.3%

54061.7%

33538.3%

Note 1: General trauma includes bruise, cuts, contusion, pricks, burns, bites, sprains, clamps, old wounds, and skin itchiness. Note 2: General diseases include headache, dizziness, fever, eye disease, ear disease, nausea, vomiting, coughing, running nose, sore throat, gastric distention,

stomachache and abdominal distention, and abdominal pains. Note 3: Health consultation includes physical examination selection, physical examination report, diet, sports, drugs, high blood pressure, diabetes,

cardiovascular diseases, hyperlipidemia, and insomnia.

Note 1: General trauma includes bruise, cuts, contusion, pricks, burns, bites, sprains, clamps, old wounds, and skin itchiness. Note 2: General diseases include headache, dizziness, fever, eye disease, ear disease, nausea, vomiting, coughing, running nose, sore throat, gastric distention,

stomachache and abdominal distention, and abdominal pains. Note 3: Health consultation includes physical examination selection, physical examination report, diet, sports, drugs, high blood pressure, diabetes,

cardiovascular diseases, hyperlipidemia, and insomnia.

(as of December 31st, 2014)

(as of December 31st, 2014)

Nursing Health Promotion Services in 2013 to 2014

Physician On-Site Serve in 2013 to 2014

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also expand the scope of services to the affiliates

and construction sites through the use of video

conference, providing consulting services for specific

groups in the future.

(2) Health Promotion Services Provided by Registered

Nurses: Among the services offered are medical

treatment (medical handling for injured or sick

c o l l e a g u e s , e m e rg e n c y m e d i c a l t re a t m e n t ) ,

providing health advice and medical health-related

knowledge, drafting health promotion campaigns

and handling relevant activities, sending condolences

to hospitalized employees, stationed physician

consultation services, medical unit contact window,

etc. In 2014, a cumulative number of 875 people had

been served, where general trauma care accounted

for 35.9% of employees seeking the medical services.

(3) Massage chair service: The Company has installed a

coin-feed massage chair and there is a stress-relief

wall in front of the massage chair. The photos taken by

colleagues are posted for the colleagues to relax the

mind and soul while enjoying the massage. In 2014,

there were cumulative 1,504 people using the service.

(4) Health Information: In view of the current sever

problems with food safety plus people today eat more

processed food and move too little, the prevention of

blood sugar, blood lipid and blood pressure becomes

increasingly important. Moreover, most employees

are quite busy at work and do not have time to read

health information, the company advocates health

promotion through activities held or hardware as well

as inviting physicians or nutritionists as well as other

experts to hold health promotion seminars targeting

at the characteristics of company employees or other

hot topics , in addition to recording the files on the

internal health promotion websites, so that colleagues

not registered for class or those at the affiliates or job

sites can watch them online. There are also abundant

health information on health promotion network such

as the latest medical and health information provided

by the competent authority. Moreover, the elevators

are installed with multimedia to broadcast monthly

activities and seminar information simultaneously with

CTCI Monthly, in addition to cooperating with relevant

department for promotion of health activities and to

let employee acquire different health knowledge. For

oversees staff, we added the information on infectious

disease to "CTCI Employee Overseas Manual" while

the library also purchases health related books for

colleagues to borrow. A total of 98 people borrowed

the books in 2014.

3. Continue to Perform Health Monitoring

A comprehensive and systematic health management is a

footstone to promote a healthy workplace. To encourage

employees to take regular health examinations, CTCI

appropriates NT$500 health check fees per person per

year aside from the inspection of health check items

provided by the contracted hospital. If any employee is

too busy to take the health check-up during the year,

such fee will be credited to his/her personal account

up to 3 years before collective use. In 2014, a total of

909 employees participated in health check-ups and

consumed a total subsidy amount of NT$3,226,803.

In addition to regular health check-ups, C TCI co-

organized four anti-cancer screening (oral cancer,

colorectal cancer, cervical cancer and breast cancer) and

three-in-one inspection (blood pressure, blood sugar and

cholesterol) activities with Shilin District Health Center

and Taipei City Hospital Heping Branch in July 2014. The

event was intended to help colleagues develop regular

cancer screening habit with the benefit of early detection

and early treatment. A total of 95 employees participated

in the event and the post-tracking was assisted by Shilin

District Health Center.

Moreover, CTCI has purchased health management

software in mid-2014 to effectively care and manage

the health of employees. CTCI co-designs employee

health management, trace and assist colleagues with

abnormal health check. The health check data in 2014

is applied with health management system to analyze

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the ten major anomalies. The year 2015 is defined as the

"Caring year for the heart and liver." Themes of seminars

are planned and annual health promotion activities are

carried out according to the themes. CTCI is scheduled

to implement corporate blood pressure measurement in

2015 and expects to improve the health conditions and

self-health awareness in employees.

4. Organizing Health Promotion Activities

(1) Health Promotion Seminars: CTCI has always been

actively helping colleagues develop correct health

concept through the organization of relevant health

promotion activities. In addition to cooperating

with Shilin District Health Center and appointing

health check hospitals, CTCI also collects colleague

demand for health seminar to develop the themes

for annual health promotion seminars, including

psychological issues for people today. Moreover, the

seminar is organized by the clubs in turn while the

Welfare Committee provides meals to encourage the

employees to participate. Among the 13 seminars

held in 2014, a total of 974 people participated.

While the other two testing events, test for carbon

monoxide in lung and bone mass measurement

for heel bones, drew a total of 107 people, where

employees were able to understand their physical

status and given proper health education.

(2) Healthy Weight Loss Act iv i ty : I n response to

Healthy Weight Management Activity – "Weight

management for good health and receive incentives

for competition" promoted by the Department of

Health, Taipei City Government, CTCI co-organized

the "Weight Loss Class" activity with Taipei Veterans

General Hospital in 2014. The course was carried out

in 8 sessions of small classes and the orientation of

courses included: concept of healthy weight loss,

ingredient choice and calculation of food types and

portion, and correct exercise methods. To reward

the participated colleagues, awards were given for

those with weight loss achievement after the end

of the course to motivate them to maintain weight

management continuously. The activity lasted

4 months, attracting a total of 20 colleagues to

participate and achieving a total weight loss of 77.8kg.

an average weight loss by 3.89KG.

(3) Smoke-free family assures happiness and smoke

concession: Smoke-free life is happiness and smoke

concession requires courage and the support

and accompany from beloved family and friends.

To maintain the health of colleagues and family,

CTCI health promoting working group follows the

regulations on tobacco prevention regulations to

cooperate with Taipei Veterans General Hospital

in the organization of smoke concession. A smoke

concession plan and related sources are built while

family and friends are invited to help the employees

build a smoke-free family.

This smoke concession course lasts for 2 months

◎ CTCI routinely holds health seminars to strengthen the employees' health concept.

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with the age of the participants between 25~35. The

course was tailored to the young smoking groups to

add vitality and few absences were reported. There

were a total of 18 people participating and 6 of them

successfully quite smoking. The success rate is about

33%; while the other half could not completely quit

smoking, the smoking amount has been cut down by

half, which significantly shows concession class has

certain effect on smoking incentive promotion and

tobacco knowledge.

5. Build Friendly Workplace

To care female employees, all female bathrooms on each

floor of CTCI Headquarters Building have been installed

with individual lockers to place other health supplies

with convenience. There is also a breastfeeding room

that has received a certificate of Breastfeeding Room

Excellence from the Taipei City Department of Health. To

help employees balance between work and family life,

the company offers flexible working hours for colleagues

to balance work, family and life freely. The "Art Classroom"

also offers an activity room for children waiting for their

parents to get off work. It is often used as space to hold

club activities. CTCI does not forget about the family of

employees while taking care of its employees' physical

and mental health, and holds two family day events to

invite employees and their family to walk into agricultural

village and mountains to enjoy the nature.

Activate Club Activities and Bring Each Other

Closer

To care and maintain the welfare of CTCI employees,

C TCI has long established the C TCI Occupational

Welfare Committee in 1979. The organization consists

of all committee members selected by all departments

and established the Welfare Committee Office with

two administrative personnel appointed to provide

e m p l oye e s w i t h c o m p re h e n s i ve s e r v i c e s a n d

consultation.

The source of funding for CTCI Welfare Committee mostly

comes from the certain proportion of appropriation

to the revenue set aside by the company. The total

amount of appropriation in 2014 was NT$50,243,494,

with an appropriation ratio of 0.132%. The different

welfares provided by Welfare Committee are targeted at

employees primarily with fairness as the main guide. In

essence, the welfare provided by Welfare Committee can

be divided into welfare subsidies (birthday celebration,

giving bir th and wedding allowance), leisure and

entertainment (domestic and international travel and

club activities), scholarships for children of employees,

◎ CTCI clubs o�ers various activities and all employees participate with great enthusiasm.

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and other incentives (holiday bonus). The most worth

mentioning is the development of CTCI's club activities.

CTCI protects the speech of employees and freedom

to association for employees to maintain interests

and receive channel for stress relief after work, which

results in a thriving development of club activities in

CTCI. There are currently 19 clubs at the Headquarters

and among which the sports-based clubs include

basketball club, badminton club, table tennis club,

baseball club, swimming club, mountain climbing club,

Taichi club, and Qigong club. Non-sports based clubs

include photography club, calligraphy association, home

economics club, music club, Faith-Hope-Love club, Puti

club, Reading club, Leisure club, IT Study club, English

Study Group, and Bridge club. The company offers table

tennis room in the building and assists employees with

preferential in external sports field rental to provide ideal

places for employees to exercise.

These clubs meet up routinely and cooperate with

Welfare Committee in the organization of various

activities. For example, some clubs provide games and

volunteers to play with the children in foster home,

integrate with charity events to hold second-hand

clothes donation, participate in charity runs, cooperate

with tourism clubs for excursions, cooperate with blood

donation center, and encourage employees in blood

donation. The annual blood donation collected is up

to 1,800 units of blood (250cc per unit). Moreover, the

Welfare Committee also appropriates additional budget

as extra subsidy to creative proposals put forward by the

clubs. If a proposed project is passed, extra subsidy will

be acquired, and employees have the opportunity to

engage in more fun activities.

In CTCI, employees do not need to belong to certain

association as all employees and even the spouses

of employees can freely joint the activities held by all

clubs. The company offers subsidies for all club activities

and holds the voting for year-end club assessment,

dividing the best clubs into superior, excellent, good,

and acceptable ranks according to the voting results

and therefore providing different amount of subsidies.

In 2014, the total amount of subsidies given to clubs

exceeded NT$1 million.

Improve Management System and Value

Human Rights

Currently, there are 3,270 employees working at CTCI

(403 new recruits in 2014 accounts approximately for

12.32%), who are not constrained by gender and age nor

races, political inclination and religion/belief, regardless

in the position acquisition or promotion. Any employee

competent and eligible for the position requirement is

entitled to the right of equality.

The equality and obligations of employees are prescribed

in the Employee Handbook and constantly announced

on the intranet of the company. CTCI employs by age in

accordance with the regulations and laws pursuant to

Labor Standard Act and CTCI does not hire any child labor.

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2012Total Employees

2,681

2013Total Employees

3,228

2014Total Employees

3,270

2,09578.14%480

17.90%

973.62%

90.34%

Official: Male: Male : Female Temporary: MaleOfficial: Female Temporary: Female

2,13366.08%

50415.61%

34110.56%

2507.75%

43613.33% 2,095

64.07%

49415.11%

2457.49%

2013Total Employees

324

2014Total Employees

395

2012Total Employees

325

Below 30 31-40 41-50 51-60 60 and above: Male : Female

4614.19%169.94%

30.93%

154.63%

30.93%

257.72%

10.31%

92.78%

15347.22%

5316.36%

6516.13%

204.96%

81.98%

40.99%

10.25%

4811.91%

4511.17%

317.69%

12230.27%5112.65%

4313.23%72.15%

10.31%

154.62%

278.31%

51.54%

19660.31%

319.53%

Employee Number & Sex Ratio in Last 3 Years

Number of New Recruits in Last 3 Years

Number of Employees Resigned in Last 3 Years

9325.48%195.21%

71.92%

102.74%

246.58%

5916.16%

61.64%

5314.52%

5515.07%3910.68%

9825.86%297.65%

92.37%

41.06%

328.44%

5614.78%

6517.15%4612.14%

61.58%

348.97%

2013Total Employees

365

2014Total Employees

379


8232.80%135.20%

62.40%

62.40%

208.00%

3514.00%

208.00%

5722.80%114.40%

2012Total Employees

250

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Structure of Employee Education in Last 3 Years

Employee Age Distribution in Last 3 Years

To implement it commitment in preventing harassment

and discrimination and prevent incident such as sexual

harassment in office, CTCI not only prescribes in the

employee manual but also strengthens advocacy for

employees during new recruits. For the handling of

various complaint events, there is a hotline established

(02)2835-5936, special email ([email protected]) to

take over the relevant complaint cases. CTCI established

the "Sexual Harassment Complaint Processing Committee"

in 2011 and any sexual harassment or suspected incidents

will be processed by the Committee. The committee

members shall adhere to confidentiality and non-

disclosure to propose investigation results in 3 months

after the proposal of complaints. The Sexual Harassment

Complaint Processing Committee comprises 7 committee

members while the Supervisor of HR Division served as

the Chairperson and other committee members consist

of the deputy general manager of Executive Management

Office (EMO) and coordinating department supervisors.

The proportion of female committee ratio may not fall

under 1/2 when the corporate employees are assigned.

There has not been any sexual harassment complaint

incident or illegal discrimination event in 2014 that have

been investigated and reported.

Cur rent ly the management a f fa i r s o f the C TC I

Headquarters Building in commissioned to a professional

property administration company. Each security guard

is trained with basic duty training and developed

with concept on human rights to routinely instruct

"Unidentified Personnel Invasion Standard Operation

Procedures," "Crowd Protect Event Standard Operation

Procedures," "Timing and Steps of Applying CPR," and

"Etiquette Education" in education and training.

170.52%

1,23937.89%

1,175835.93%

50315.38%

33610.28%

Master Bachelor Associate Degree Holder Senior High School and BelowDoctor

2012 2013 2014

130.48%

1,10841.33%

97136.22%

45617.01%

1334.96%

170.53%

1,22337.89%

1,24838.66%

51615.99%

2246.94%


45013.76%

1775.41%

81724.98%

48314.77%

61118.69%

2337.13%

2096.39%

1123.43%

1705.2%80.24%

2014Total Employees

3,270

45516.97%

1084.03%

65824.54%

49018.28%

49018.28%

1194.44%186

6.94%

682.54%

993.69%80.30%

2012Total Employees

2,681

49315.27%

2116.54%

77624.04%

50815.74%

57117.69%

2206.81%

2146.63%

993.07%

1263.9%100.31%

2013Total Employees

3,228

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Employee Sex and Remuneration Ratio in Last 3 Years (F:M)

Employee Sex and Number of Persons Per Rank Ratio in Last 3 Years (F:M)

Rank 2012 2013 2014

Chief Engineer/Senior Specialist I(No female employees for

the rank in 2012) (No female employees for

the rank in 2013)0.91:1

Deputy Chief Engineer/Senior Specialist II 1.029:1 1.130:1 0.97:1

Associate Chief Engineer/ Senior Specialist III 0.949:1 0.945:1 0.91:1

Principal Engineer/ Specialist I 0.983:1 0.971:1 0.96:1

Senior Engineer/ Specialist II 0.906:1 0.924:1 0.94:1

Engineer I/ Specialist III 0.935:1 0.868:1 0.95:1

Engineer II/ Specialist IV 0.924:1 0.947:1 0.99:1

Engineer III/ Specialist V 1.096:1 1.069:1 1.05:1

Engineering Assistant / Specialist VI and others 1.063:1 0.840:1 0.93:1

Rank 2012 2013 2014

Vice President and Above(No female employees for

the rank in 2012) (No female employees

for the rank in 2013) (No female employees

for the rank in 2013)

Chief Engineer/Senior Specialist I (No female employees

for the rank in 2012) (No female employees

for the rank in 2013)0.02:1

Deputy Chief Engineer/Senior Specialist II 0.06:1（2013年）

20130.05:1

Associate Chief Engineer/ Senior Specialist III

0.066:1 0.06:1 0.05:1

Principal Engineer/ Specialist I 0.12:1 0.08:1 0.14:1

Senior Engineer/ Specialist II 0.148:1 0.13:1 0.15:1

Engineer I/ Specialist III 0.193:1 0.16:1 0.20:1

Engineer II/ Specialist IV 0.345:1 0.20:1 0.36:1

Engineer III/ Specialist V 0.293:1 0.37:1 0.30:1

Engineering Assistant / Specialist VI and others

1.827:1 0.28:1 1.02:1

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Fair and Reasonable Salary and Welfare

CTCI values employee welfare and care. Apart from

offering a base salary higher than the minimum local

wage, CTCI also appeals in internal and external fairness

as well as individual fairness. In terms of external fairness,

we have external professionals surveying the salary and

benefit survey with fully understanding of the market

rate while analyzing the employment environment as the

foundation of our salary design

For internal fairness, the salary structure is designed

based on the evaluation of skills and duties of employees

so as to insure that the salary standard is appropriate and

irrespective of gender difference. To encourage better

performance of colleagues, CTCI also combines one's

payment with his/her performance, especially for variable

bonus, to realize individual fairness in salary with one's

organizational performance, departmental performance,

and personal performance. Additionally, salary review

is performed according to the market salary survey and

personal performance ever year. As for the payment for

employees who work overtime, we give overtime pay. In

2014, the average overtime hour in CTCI Corporation is

23.65 hours per person each month.

To attract and retain outstanding talents, CTCI has

introduced "Employee Stock Investment Pol icy".

Employees may join the Employee Stock share Trust by

appropriating a specific proportion of the total amount

of their base salary and festive bonuses, and 30% of that

amount is offered as an extra encouragement bonus.

However, this sum of money will not be included in the

future pension or severance pay.

Moreover, employees may also buy in CTCI stocks at a

specific price according to the Employee Stock Option

Issuance Measure. The quantity of stock and eligibility

of employees depend on the position, performance,

contribution, special performance or other conditions.

The president and department managers may further

provide a certain proportion of shares to employees

with direct contribution or excellent performance to the

company as a kind of reward.

Other benefits provided include three-festival bonuses,

birthday cash gifts, birth subsidy (available to both

females and males), hospitalization subsidies, consolation

funds for critical illness and death. In 2014, we spent

about NT$50 million on the welfare of employees. In

terms of infant care, rules regardingUnpaid position

reserving for nursing based on the Act of Gender Equality

in Employment and Regulations for Implementing

Unpaid Parental Leave for Raising Children, are specified

in the Employee Handbook. For an employee hired for

one full year, the "Unpaid position reserving for nursing"

may be applied for child aged below 3 until the child is 3

years old, while the length of leave should not be longer

than two years. Total applicants were 21 in 2014 (17

female employees and 4 male employees)

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Analysis of "Unpaid Position Reserving for Nursing" in Last 3 Years (as of Dec 31st, 2014)

Year 2012 2013 2014

TypeTotal no. of

personsM F

Total no. of persons

M FTotal no. of

personsM F

No. of employees applying for leave that year

8 4 4 15 5 10 21 4 17

No. of employees to be reinstated for that year (A)

6 2 4 12 6 6 16 3 13

No. of employees still on leave that year

3 1 2 7 1 6 13 3 10

No. of employees resigned for that year after leave

1 0 1 1 1 0 8 0 8

No. of employees should reinstate and have actually reinstated that year (B)

5 2 3 11 5 6 9 3 6

Cumulative no. of employees reinstated after leave (C)

9 3 6 20 8 12 28 11 17

Cumulative no. of employees already reinstated over 12 months (D)

6 2 4 8 3 5 19 8 11

Resumption rate after reinstatement (%) (B/A)

83.3％ 100.0％ 75.0％ 91.7％ 83.3％ 100.0％ 56.3％ 100.0％ 46.2％

Retention rate after reinstatement (%) (D/C)

67％ 67％ 67％ 40％ 37.5％ 41.7％ 68％ 73％ 65％

Note: Definitions of figures (using 2014 as the example) (1) No. of employees applying for Unpaid position reserving for nursing that year: Number of applicants for Unpaid Infant Care Leave(2) No. of employees to be reinstated for that year (A): Number of applicants for Unpaid position reserving for nursing to be reinstated in 2014 (3) No. of employees still on leave that year: Number of employees still on unpaid infant care leave in 2014 (4) No. of employees resigned for that year after leave: Number of applicants for unpaid infant care leave who resigned in 2014 during the leave. (5) No. of applicants for Unpaid position reserving for nursing who expected and have reinstated in 2014(6) Cumulative no. of employees reinstated after leave (C): Cumulative number of employees already applied for Unpaid position reserving for nursing and

have reinstated as of 2014 (7) Cumulative no. of employees already reinstated over 12 months (D): The number of employees who have reinstated over 12 months from the report

deadline (8) Resumption rate after reinstatement (%) (B/A): The number of employees should reinstate and have actually reinstated (B)/the number of employees to

be reinstated for that year (A) (9) Retention rate after reinstatement (%) (D/C): The number of employees who have reinstated for over 12 months (D) /Cumulative number of employees

reinstated after the leave (C)

As for employees who are dispatched abroad, CTCI will

gather the life information of that country and compose

a handbook for the dispatched employees and their

families to read. In consideration of the family life of

employees, full subsidizations for the flight tickets are

provided four times a year for employees to go back

Taiwan or as the traffic charge for their families to visit

them in the country they work.

As for employment abroad, CTCI hires a large number

of local personnel at the place where construction is

undertaken. The number of employed personnel abroad

increases year by year and CTCI offers average salary

higher than the minimum local wage requirement. This

way will help increase the local employment rate and

take care of the life of employees. Take CIMAS in Vietnam

as an example, the minimum monthly wage defined by

the Vietnam Government is US$144 while CTCI provides

a minimum salary of US$381 per month, which is 3 times.

CTCI also joins the special salary welfare investigation

of local areas to design a remuneration system that will

meet more employee expectation and market fairness.

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Ratio of local supervisors in 2014

Ratio of local employees in 2014

Ratio of local wage paid in 2014 to local minimal wage

JDEC85.2％98.9％229％

SDEC9.1％87.4％123％

CIMAS91.2％98.7％265％

CTCIT85.4％92.9％100％

CINDA50.5％89.8％219％

CAL50.0％94.5％100％

Ratio of Local Employees and Local Wage Analysis in Overseas Subsidiaries in 2014

CAL: CTCI Arabia Ltd. CINDA: CINDA Engineering & Construction Pvt. Ltd.CTCIT: CTCI (Thailand) Co., Ltd. CIMAS: CIMAS Engineering Co., Ltd.JDEC: Jingding Engineering & Construction Co., Ltd. SDEC: Shang Ding Engineering & Construction Co., Ltd.

Sound Communication Channel to Understand

What Employees are Thinking

To enhance the industrial relation and guarantee rights

of the labor, CTCI sets up a "Employment Coordination

Meeting" on a quarterly basis in 2010. Important affairs

of the quarter are reported or discussed in the meetings.

Major issues raised are CTCI business development and

the employees' health, safety, welfare, salary, reward and

punishments. The meeting agenda will be announced to

the employees, called for once each quarter and 4 times

a year.

The "Employment Coordination Meeting" is composed

o f 6 management representat ives and 6 labor

representatives. Representatives of the management are

chaired by the director of the Executive Management

Office who assigns personnel familiar with business

operations and labor s ituations as management

representatives. The 6 labor representatives are elected

by the constituency (units of business operations) and

each term is 3 years. Wherein, supervisors above the rank

of Senior Executive President are not allowed to serve

as labor representatives, and female representatives

must not be less than one-third of the total labor

representatives.

In internal communication, we hold "Seminar between

Executives and Employees" on a regular basis for

employees to discuss with higher level supervisors face

to face and raise opinions and questions about company

operation or management. The seminar was firstly

held in 2009, and has since attracted approximately 50

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employees each time. We have held 19 sessions of the

seminar with nearly 1,000 employees participated, which

allows the managers to hear the voice of employees

while employees can understand better about the

company policy and direction.

Resigned employees also take questionnaire survey to

understand the employees' satisfaction towards the

company, cohesion and stability. Additionally executives

also communicate with employees face to face and on

a regular basis to understand their views towards the

company and the work.

As for basic level employees, CTCI has performed an

Organization Climate Survey in 2012 to understand the

satisfaction degrees of employees regarding organization

system, culture, and supervisor leadership. Anonymous

survey is also performed for quitting employees to

understand satisfaction degree, through which, we can

know better about employees' opinions about CTCI.

Furthermore, higher-level supervisors will also discuss

with recruits regularly to understand opinions and ideas

of them through face to face communications.

For the purpose of boosting employee's engagement

in work and improving their work morale, the "Proposal

Reward Regulations" has been implemented since

September of 2010. For proposals with efficacy, creativity,

and applicability, rewards are issued immediately as an

encouragement once it is adopted. As of the end of 2014,

there have been totally 342 proposals raised, wherein

31 proposals have passed initial examination, among

which 5 proposals have been finished, and other 26

proposals have been transferred to related departments

as subsequent reference. There are 3 proposals passing

reexamination and are ongoing, as shown in the

following table.

Additionally, there is a "Staff Opinion Box" for colleagues

to send questions through e-mails, which are gathered

according to question types and forwarded to related

divisions for replies.

Statistics of Various Proposals in Last 3 Years

Type of proposals

Closed

Total Passed 2nd review

Passed preliminary review and closed

Rejected in the preliminary review

2012 General proposals 8 80 116 204

2012 Project proposals 4 1 4 9

2012 Sum 12 81 120 213



2013 Sum 14 106 158 278



2014 Sum 14 137 191 342

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Since the foundation of CTCI Monthly published by CTCI in 1979, CTCI upholds the philosophy of

assuring the inheritance of engineering technique, improving enterprise image and enhancing internal

communication. As of the end of 2014, a total of 425 issues have been published. To save energy and

reduce carbon emission from paper print, CTCI started publishing the CTCI Monthly since May 2012 in

synch while reducing the number of 2,500 copies per issue to 800. The content of the monthly magazine

is diversified, including engineering technique topics, sharing of engineering experience and work

experience, conveyance of company operational belief, company status, and specific reports for important

events, topics in art, health and tour information are offered as well. Various activities held by

CTCI, including "Shilin Cultural Festival: Scenic Zhishan," and health promotion

speeches are presented in the "Special Reports" section of the monthly

magazine, providing rich information on life and enhancing

the employees' identification and participation for the

company.

CTCI Monthly – A Companion for Internal Communication

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Building Friendly and Harmonious Partnership

U pholding the corporate culture and principles

in professionalism, integrity, teamwork, and

innovation, CTCI has long been accompanied by its loyal

clients, suppliers, subcontractors and staff members

along the way while CTCI also embraces the mentality of

building friendly and harmonious partnership. We value

our commitment in project quality from the stance of

clients and we firmly believe that mutual trust is far more

important than anything else. From the perspective of

supply- chain, we intend to build a work environment

focusing on HSE, and regard occupational safety as the

top priority in project management. Moreover, CTCI is

more actively participating in infrastructure projects

and intends to bring a more convenient and safe living

environment for the public through the company's R&D

technology in engineering expertise.

Providing Clients with Outstanding Engineering Quality

As the largest domestic EPC contractor and leading

global engineering and technology service team, CTCI

has prospered and grown with the trust from customer

both home and abroad over the past thirty years. Quality

is the most critical element with absolute perseverance.

Introduction of International Standards

CTCI creates a set of Quality Management System

(QMS) from project management, design, procurement,

construction, manufactur ing, commissioning, to

maintenance in accordance wi th the ISO 9001

International Standard to assure that all stages of project

execution conform to the contract, laws and corporate

requirement. Such management system has been

verified in 1996 and is operated through the PDCA (Plan-

Do-Check-Act) management cycle.

With regards to HSE, CTCI applied prudent control and

introduced international safety, health and environment

and quality management standards to Taiwan, increasing

the domestic average engineering standards through

proper execution of local projects. In a specific execution

case such as the CPC Talin 14,000 BPSD Alkylation Project,

CPC 720KTA No.6 Naphtha Cracker Project, CPC Talin #10

SRU Project, TPC Power Generating Equipment for Talin

Power Plant Renewal Project, FPCC 60KTA C5 Isoprene

Project, TPC 800MW×3 Lin Kou Power Plant Renewal

Project, and TPC Tung Hsioa Power Plant.

Continuously Strengthen Quality Management

System

In recent years, the projects undertaken by C TCI

are getting more complex with larger scale. With

the increasingly more r igorous demand imposed

by customers both in Taiwan and abroad for the

requirement of the quality and quantity of quality

administrators, quality management procedures, and

document records control, besides attaining the ultimate

quality of engineering realization conforming to the

contract and local laws and regulations. For this reason,

CTCI is devoted in promoting "Corporate Document

Management System Integration and Improvement,"

"Project Vertical Quality Management Integration,"

"EPC (Engineering/Procurement/Construction) Process

Advancement Measures and Outcome," and "Quality

Management Information System" as well as other

quality management activities. CTCI intends to constantly

improve the activit ies and existing management

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mechanism, followed by promoting and advocating to all

departments through Quality Management Department

so that users can timely grasp the latest methods and

concepts of procedure unification operations.

The specific matters and effectiveness of promotion are

shown in Figure 1 with the outcome summarized in the

following description:

P C

KE

Promote Company DocumentSystem Improvement

Strengthen the awareness of project members for operation procedures

Strengthen the awareness of project members for operation procedures

Promote Project VerticalManagement Integration

Quality ManagementInformation SystemQuality ManagementInformation System

Advancement in management rules and document websitesAdvancement in management rules and document websites

Promote ProcedureAdvancement MeasuresPromote ProcedureAdvancement Measures

Promote project project site document handover controlPromote project project site document handover control

Promote project device quality managementPromote project device quality management

Strengthen design document and vendor document review mechanism

Strengthen design document and vendor document review mechanism

Establish project internal audit moduleEstablish project internal audit module

Promote NCR/DND e-formPromote NCR/DND e-form

Establish quality incident reporting moduleEstablish quality incident reporting module

Strengthen project operation proceduresStrengthen project operation procedures

Improve document formulation efficiencyImprove document formulation efficiency

Organize project critical process assessmentOrganize project critical process assessment

Implement project design change controlImplement project design change control

◎ 1. Quality Management Activity Promotion Ma�ers and E�ectiveness

(1) Company document management system integration

and improvement

． Increase document joint review procedure and

bilingual publication: revised "Procedure for the

Formulation, Revision, Publication and Numbering

of Company Documents" (hereinafter referred to

as CP-001-E) by revising the previous document

co-signing operation into document joint review.

For the formulation or revision on the level 1 and

level 2 documents of the company, the formulating

unit shall invite relevant units to initiate a joint

meeting to participate in document review and

facilitate opinions expressing through bilateral and

immediate coordination and response, thereby to

effectively shorten the schedule between document

formulation and publication. Moreover, the company

shall announce concurrently and publish the English

version of the relevant level 1 and level 2 document

formulations under the globalization and strategic

leadership of internationalization, which can be used

as guidance for non-Taiwan national colleagues with

quality standards operation procedures as well as

providing similar operation procedures for overseas

subsidiary.

． Maintain and integrate project administration

procedure: In CP-001-E, Project Administration

Procedure are concluded according to the numbering

rules in Figure 2 and shall be re-reviewed by the

relevant departments while the modification coding

shall be integrated with par tial procedures so

that project members can clearly understand the

scope of procedures and adaptability in addition to

implementing the execution.

Project Human Resource ManagementPA-400~499

Project Cost ManagementPA-300~399

Project Time ManagementPA-200~299

Project Scope ManagementPA-100~199

Project Integration ManagementPA-000~099

OthersPA-900~999

Project Material ManagementPA-800~899

Project Procurement ManagementPA-700~799

Project Risk ManagementPA-600~699

Project Communication ManagementPA-500~599

Project Engineering ManagementPA-050~059

Project Construction ManagementPA-060~069

Project Commissioning ManagementPA-080~089

Project Administration

Procedure

◎ 2. Project Administration Procedure (PA series) Numbering Rules

． CCC (CTCI Cyber Channel) "Management Rules and

Document" revision: the CCC "management rules

and document" platform is designed for modification

to present the quality document management

system architecture in addition to providing the

execution of fast and correct SOP (standard operation

procedure). The system was launched in May of 2014

for online use, whose main scope of modification

included the update on query contents and new

cover page announcement, keyword query function,

revision comparison table and "history" as well as

"void" document base. CCC "management rules and

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◎ 3. CCC "Management Rules and Document" System Query Function Screens

Instruction: A. Latest document query record, divided into Level

1 and Level 2 consisting of 13 document base for separate query on various documents.

B. History storage: historical version and revision comparison table for documents stores. *Historical versions of document bases are restricted for query with authorization.

C. Void document storage: Older version of document announced for void and in storage. *Void document base are restricted for query with authorization.

D. Recently published documents and relevant information that allows direct selection of document name to open the file via hyperlink.

E. Recent announced void document and other reason scrap.

F. Site searching function: Input keywords to search for relevant documents. The scope of keyword search includes the name of document and contents.

document" system query function screenshots are

shown in Figure 3.

(2) Project vertical quality management integration

． Pro j ec t c r i t i ca l p roc e ss a s se s sm en t : Q ua l i t y

Management Department consolidates the outcome

of quality audit and the project quality incidents

occurred in recent years, which will be analyzed for

the promotion of "Project critical procedure control

assessment operation." The "project critical procedure

control assessment form" is a quality management

system related procedure published according to

the company announcement, which is developed

according to the key control of project operation

process and past common audit flaws. Furthermore,

the form turns passive into active by organizing the

project quality management information meeting

for members of newly established projects, including

the project cr i t ical procedure qual i ty control

guidelines and project contract quality requirement.

The above behaviors will effectively increase the

project implementation in terms of critical procedure

execution control.

． Implement project design change management: to

strengthen the design change control mechanism

and improve control effectiveness, the Quality

Management Department and relevant departments

re v i e w e d t h e re v i s i o n d e s i gn a n d c h a n g e d

management procedure. The Engineering Division

had included the aforementioned in "PQS-402-E

Engineering Design Procedure" and announced

publication in April of 2014. The key revisions to design

change management procedure as shown in Figure

4. Moreover, the Quality Management Department

validates the establishment and execution of project

design change management procedure during the

various project quality audits, so that the department

could explicitly control personnel appointment and

with effective tracing on closing situations through

explicit design change and reason attributes, therefore

to comprehensively strengthen the control of change

costs.

◎ 4. Guidelines for Project Design Change and Management Procedure Modi�cation

Increase design change control

operation

reason of change Attribute validation

Cost follow-up control

Modify DCN and FDCN reporting

information

Reason of changeAttribute

classification

Classifcaiotn of cost impact

Increase design change control form

Summarize ptimary data on

Notice of change

Increase change cost control personnel and follow-up on

closed case

A

B

C

D

E

F

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． Strengthen project member operation procedure

awareness process: To assure CTCI's conformance

with thelevel 1 and level 2 operation procedures

announced and published by CCC, the relevant

competent personnel have read and understood

the guidelines issues or revised, in addition to

complying and implementing execution in the daily

operations. The Quality Management Department

has been promoting the organization of "Awareness

for Competent Personnel in level 1 and 2 Operating

Procedure" with the purpose of strengthening the

awareness of operation procedures and thereby

effectively improve the implementation of project

operation plan. The simplified operation processes for

"Awareness for Competent Personnel in Level 1 and 2

Operating Procedure" is shown in Figure 5.

◎ 5. "Awareness for Competent Personnel of Level 1 and Level 2 Operation Procedures"

(3) EPC Process Improvement Measure and Outcome

． Upgrade project equipment quality management:

The storage and maintenance of equipment between

arrival and commissioning are the key to assuring

the normal operation of equipment. Hence, the

Construction Division shall jointly revise the relevant

procedures for equipment receiving, storage and

maintenance while the manager of Construction

Division promotes and requests all sites to follow

accordingly. Moreover, the Quality Management

Department develops the "Equipment Storage and

Maintenance" audit checklist to review the project

site equipment maintenance through project quality

manager (PQM).

． Strengthen design document and Vendor document

review mechanism: To reduce design interface related

issue, the Squad Check List is prepared into checklist

form with selection mechanism (Y/N) and additional

co-signing blank for original deign department to

add to squad check, in addition to incorporating the

aforementioned quality control mechanism into SPF

(Smart Plant Foundation). Additionally, to clarify the

review items and internal responsible departments

of Vendor Document Review (VDR), the engineering/

procurement/construction divisions to jointly develop

vendor document review authorization table in

addition to supplementing the vendor document

review control operation mechanism in the "PQS-

102-E Project Documents and Data Control Procedure"

in order to effectively control the vendor document

review procedures.

． Promote project site document hand-over control:

The QVD (Quality Verification Document) documents

for construction and commissioning are divided into

in-house, turn-over and PCC (Pre-Commissioning

Control) (Figure 6). The project should be customized

into construction and commissioning hand-over

documents according to the ITP (Inspection Test Plan)

approved by the client. Then the critical documents

from the turn-over documents will be selected as PCC

Documentformulatingunit

QualityManagementDepartment

QualityManagementDivision

Personnel

Organizing GTS test

Follow-up test results

Statistics testing results

Call for document formulation joint review

meeting and determine if testing is required

Provide testing questions

Complete GTS online testing

within specified time

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◎ 6. Project Construction Site Hand-Over Document Diagram

Construction Site Quality Document All Project Turn-Over Documents

documents as the control point of turn-over. Then

the construction division and Innovation R&D Center

will jointly promote and establish the "Site Document

Turn-Over Control System" to upgrade QVD document

control efficiency to avoid affecting the hand-over

schedule.

(4) Quality Management Information System

． Establish project internal audit module: To explicitly

define the internal audit and relevant responsibly of

the project, the Quality Management Department

reviewed and revised the "PQ-501-E Quality Audit

Procedure" and collectively designed and established

the "Project Internal Audit Module" with the HSE

Management Department. The internal audit was

divided into 1. "Corporate internal audit module"

for the audit executed by the company. 2. "Project

internal audit module" for the internal audit of project.

The most significant difference between the two

modules is the "Quality Management Representative"

while the internal corporate audit report is reviewed

and signed by the head of Quality Management

Department while the internal project audit report is

reviewed and signed by the Project Manager (PM).

． Establish quality incident reporting module: The

purpose of establishing "Quality Incident Reporting

Module" is to facilitate the employees with e-reporting

quality incident to improve the quality incident

reporting efficiency, improve quality incident to

summarize statistics operation process. This module

replaces the original written reporting procedure

and paper form for company employees and project

members to fil out online the quality incidents

already occurred or the potential quality problems

discovered. Moreover, the module further shows the

time of incident occurrence, premise, responsible unit,

and loss by analyzing the root-cause and impact of

any incident occurs to facilitate the correction and

prevention of system quality problems.

． Promote NCR/DND E-management: To effectively

control the issuance and improvement for NCR

(Nonconformity Report) and DND (Defect Notification

Disposition), in addition to summarizing the NCR/

DND information of all company, thereby to conduct

comprehensive statistical analysis. In 2014 CTCI

promoted NCR/DND e-form, established mobile

issuance APPs and SPF-PCC system module to carry

out the issuance, tracing and control of NCR and DND.

Refer to Figure 7 for NCR/DND APP interface and

instruction.

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◎ 7. NCR/DND Apps Interface and Instruction

Stringent Execution of Internal/External Audit

The development of per fect quality management

process without stringent audit plan would have been

useless. CTCI Q HSE Division has designed a set of

considerably stringent internal audit standards to audit

the departments and projects on a regular basis.

There were 150 Auditee for quality in 2014, including

84 projects and 66 departments with 5,572 samples.

The audit result showed 11 Positive, 659 Opportunity

for Improvement (OFI), 205 observations (OBS) and 33

corrective action requests (CAR). The average number

of project flaws is 2.10 while the average department

flaws were 0.48. With regards to HSE, there were 101

Auditee with 44 based on projects as audit target while

57 auditing the department. A total of 2,272 samples

were drawn. The audit results revealed 4 Positive, 271

Opportunity for Improvement (OFI), 106 observations

(OBS) and 2 corrective action requests (CAR). The project

defect rate is 6.84% and department defect rate is 1.63%.

As fo r the in ter na l aud i t resu l t s , the company

departments have all taken immediate processing and

tracing. Currently the corrective action request and

observations identified have been improved. Additionally

the company commissions BSI to conduct external

audit. In 2014, there were 6 Positive (P) discovered, 6

opportunity for improvement (OFI), and 5 observations

(OBS). The observations from the audit results have been

improved by the company within the shortest time

possible.

Value Customer Requirement and Implement

Satisfaction Survey

Upholding the belief of "Exquisite engineering quality

wins customer satisfaction" CTCI applies stringent

requirement for internal employees to take basic

responsibly of qual ity f rom engineer ing design,

construction to maintenance according to "strengthen

customer service operation" with prudent attitude when

faced with the opinions given by external customers.

For this reason, CTCI has established phone, email and

fax channels for customers to respond with valuable

suggestions while the information will undergo careful

categorization, analysis, processing and response.

Save the issuance information offline at any time and upload to the database in the presence of internet services.

Directly take the defect photo at construction site as NCR/DND records.

Record to leave real-time voice information on the site inspection process and content.

The system will automatically number the project demand.

According to the operations configured for all projects, the following drop-down list can be used for construction site to select the different information and to issue NCR and DND quickly.

->Process simplification can reduce on-site operation and increase operation efficiency.

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2012~2014 Customer Satisfaction Survey

It is our responsibility to maintain customer privacy and

other than signing "Non-Disclosure Agreement" with

customers in the process of plant construction, CTCI

also requests project manager to sign the "Project Non-

Disclosure Agreement" to supervisor executing staff with

compliance with the matters in the letter of commitment.

Upon completing the plant, CTCI will voluntarily provide

the information regarding project design, engineering

operation machinery operation to customers according

to the entire completion data, thereby to maintain their

rights to know.

Under layers of constraints from the internal mechanism,

there has not been any infringement to customer privacy

in 2014 or omission of important document.

Apart from passively accepting customer response and

opinion, the company also takes initiative to find out

the market situation. First the President will serve as

the coordinator for the interdepartmental formation

of "Customer Opinion Operation Team" and shall

conduct customer satisfaction survey for projects under

warranty, using scientific method to analyze and propose

improvement suggestions, and the President will then

supervise all departments to perform the solutions and

assure the engineering quality meeting customer trust

and expectation.

In the first half of 2014, CTCI conducted customer

satisfaction survey on 32 projects with valid questionnaire

on 28 projects. The proprietor gave CTCI a 8.08 for

satisfaction in a scale form one to 10. CTCI conducted

survey on 36 projects with valid questionnaire from 30

projects, averaging satisfaction in 8.07 points.

Year HSEEngineering

QualityResponse

SpeedCommunication

and CoordinationEngineering

Progress Professional Technology

Average questionnaire

scores

1st half year of 2012 8.19 8.13 8.43 8.35 7.95 8.70 8.29

2nd half year of 2012 7.88 7.97 8.15 7.85 7.76 8.24 7.98

1st half year of 2013 7.92 7.95 8.52 8.30 7.93 8.46 8.18

2nd half year of 2013 7.79 7.74 8.23 8.16 7.58 8.26 7.96

1st half year of 2014 8.23 7.87 8.15 7.97 7.92 8.34 8.08

2nd half year of 2014 7.91 7.81 8.51 8.06 7.66 8.49 8.07

◎ Routinely visiting project site to build a safe project site environment.

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Apart from the opinion of external customers, CTCI has

also implemented internal Customer satisfaction since

2009 while concurrently compare the survey results

with the questionnaire of external customers as the

guidance for improvement on service quality. Such

approach will further help CTCI understand the internal/

external problems and weakness/strength of all products.

In the coming year, CTCI projects to apply stringent

requirement for over 8 points in customer satisfaction.

Systematic Supply- Chain with Sustainable

Management

CTCI is an EPC turnkey company under globalized

management . I n addi t ion to s t rengthening i t s

competitiveness in project management, CTCI is also

committed in the sustainable purchase. Faced with all

major engineering projects and hundreds of downstream

vendors, CTCI has long developed a set of management

over contractor construction and vendor products such

as disclosing the contracting rights and obligations

in details at front end through the following prudent

procurement supply- chain management process, vendor

contracting projects with limited assessment eligibility,

and sending personnel to inspect vendor products and

construction process from time to time at back end.

Purchase requisition Vendor quotationBid evaluation and bid awarding

Placing order and contract signing

Expediting Inspection Completion and delivery

Civil subcontractorPiping subcontractorInstrument subcontractorElectrical subcontractorEquipment subcontractorOther subcontractors

Civil supplierPiping supplierInstrument supplier Electrical supplierEquipment supplierOther suppliers

CTCI takes prudent attitude toward all details of projects

and will provide full instruction on the work content,

specification, schedule, and safety before signing with

the vendors and contractors so the vendors will fully

understand the scope of construction and the risks

involved. CTCI will indicate the amount of contract,

payment terms, liabilities of both parties, rights and

obligations, and penalties on the contract as reference

for vendors to perform the contract. The company also

establishes supplier payment query system opened for all

vendors to access the payment progress of each invoice.

To encourage vendors not only to provide excellent

quality and lead-time but to further jointly fulfill the

responsibility in protecting the environment as well as

providing friendly employment environment, thereby

upgrading the competitiveness of both parties, CTCI has

increased criteria such as environmental management,

labor conditions, human rights, and social impacts as well

as other vendor corporate sustainability assessment to

the previous equipment collaborative vendor eligibility

assessment standard records for vendor in its supply-

chain. The assessment now ties with the previous quality

and lead-time design manufacturing capacity as the

sustainability risk assessment management items for

supply-demand chain. It is a key reference for CTCI's

procurement strategies in the joint establishment of

sustainability based supply- chain.

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C TCI has v i s i ted and audi ted 34 domest ic and

international vendors in 2014, including evaluation on

vendor corporate sustainability. CTCI asks vendor to fill out

the vendor corporate sustainability assessment according

to the real situations, followed by in-field auditing at the

site conducted by CTCI factory visiting representatives.

Among the 34 vendors having completed auditing, 7 of

them did not complete the ISO14001 and OHSAS18001

qualification but only the factory HSE autonomous

management system. Additionally, 4 vendors have not

established management system for sub-grade supplier.

We have corrected and suggested on site during the

individual audit meeting and advocated the supplier to

further establish sustainable and reduction of risks.

To assure the vendor and associate vendors of CTCI

provide equipment, contract design, construction and

manufacturing work in conformance with the company

inquiry and customer demand through quality, HSE,

price, and delivery, the project procurement manager

and procurement engineers would represent the

procurement department will and follow the "vendor

assessment operation process" to conduct mid-term

assessment on the equipment vendor and associate

vendor throughout the execution after the project has

started. The vendors of equipment and associate vendors

will also assess project once in every half year. In 2014,

the company assessed 1,171 order and contracts with

an average score of 8.23 points. These sophisticated

assessment work fully indicates CTCI's principle of

integrity and fairness in treating all vendors, creating a

win-win situation between CTCI and vendors in perfect

cooperation, co-existence and co-prosperity.

For vendors assessed with excellence who are reported

with issuance of letter of appreciation will need to

achieve 8 points in the total assessment scores and

HSE scores before being qualified for accepting the

proposals. Assessment with non-conformance or is on

the vendor list of dishonored account as announced by

the Public Construction Commission, Executive Yuan,

will be considered by CTCI as non-conforming vendor

and subject to submission to the registered list for

suspension of rights. The restoration requires re-review

and submission to relevant business division supervisors

before restoring the rights.

The following table shows the regional procurement

outsourcing ration in last 3 years (2012-2014). Based

on the intention to assist with regional economic

development, engineering projects wil l consider

outsourcing to local vendors as priority. Hence the

regions of execution for engineering projects vary

each year while the ratio of outsourcing procurement

also changes. There was no significant change in the

relationship between CTCI and the vendors in 2014.

10~8.0

7.99~6.0

5.99~4.5

Total

Score

12315

307

849

252 55

800 49

Orders

Contracts

2014 Vendor Assessment Statistics

The following table shows the regional procurement outsourcing ration in last 3 years (2012-2014). Based on the intention to assist with regional economic development, engineering projects will consider outsourcing to local vendors as priority. Hence the regions of execution for engineering projects vary each year while the ratio of outsourcing procurement also changes. In 2014, there was no significant change in the relationship between CTCI and the vendors and for plant and client located in Taiwan, the amount about local purchasing order and subcontracting is 78.9% of total project procurement amount.

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America 2.64%

Asia 89.47%

Europe 7.89%

2014

Asia

Europe

America

America 2.48%

Asia 82.24%

Europe 15.28%

2012

America 1.55%

Asia 94.98%

Europe 3.47%

2013

Regional Procurement Outsourcing Ratio for 2012 to 2014

Building Safe Work Environment

Project quality relies on the establishment of safe and

healthy foundation for the employee, contractor, client,

and the environment. Hence CTCI also focuses on

building safe work environment while expanding its

business, providing the engineering projects with more

labor and quality protection.

Daily Review on Construction Quality

To improve engineering stringency, the team coordinates

for construction review meeting daily during the

period of project execution, in order to follow up the

control over the construction quality of associate

vendors. The review matters include work progress,

difficulties encountered, quality flaws, flaws in safety

and health environment, work distribution, cross-border

coordination, and movement arrangement for all vendor

machinery and equipment, as well as improvement

solutions. Daily review meetings help the work team to

immediately respond and handle major problems to

avoid delayed project progress.

Stringent Management of HSE System

HSE is closely related to the human rights of workers and

hence CTCI established the HSE management system in

accordance with ISO14001 and OHSAS18001, while the

President promulgated the HSE policy statement in 2005

with applicable scope including the headquarters and

all projects sites. The HSE policies are routinely amended

and co-signed by all department heads and president to

declare to customer of the company's determination in

valuation of HSE.

Moreover, CTCI has been successfully accredited with

the certification of HSE management system and

became the first company acquitting quality and HSE

system qualification concurrently in the domestic

engineering field. In 2008, CTCI acquired TOSHMS

(Taiwan Occupational Safety and Health Management

System) certificate, highlighting CTCI's attention on labor

participation, procurement safety management, and

contracting management. In 2012, CTCI even successfully

converted to CNS15506: 2011, followed by passing the

3-year re-examination and certification renewal for HSE

management system in November-2014.

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CTCI established the "Occupational Safety and Health

Committee" comprising 18 committee members

according to the law. Among the 6 labor representatives

in labor-employer meeting accounted for one third of the

total number. The Committee calls for a regular meeting

in every 3 month to review the matters related to

occupational safety and health management in addition

to listing the discussion and conclusion of the meeting to

meeting minute to announce all employees.

To attend labor safety, the company conducts safety

design inspection operation at the project design

stage according to the "Risky Workplace Review and

Inspection Guidelines" and international standards (API,

IEC), to improve the safety and quality durability of the

entire operation. During the project construction period,

the company also requests all associate vendors to

comply with laws, regulations and contract requirement

by establishing labor safety health management

department and personnel, forming construction site

coordination organization, and coordinating the safety

and health matters regarding the common operations

between the vendors. Additionally the overseas projects

shall comply with CTCI standards as well as the local laws

and regulations.

The QHSE Division of Headquarters follows the safety and

health management system annually to develop proper

annual objectives by routinely tracing the execution

effectiveness and provide reference for management in

the decision making for quarterly allocation of resources

as well as the evaluation standards for next year's objective

formation. The entire dynamic management process

provokes the company to pay attention to flaws and

improvement in order to create the best safety and health

environment conditions for employees in good circulations.

Promoting Total HSE

To reduce occupat ional hazards and r isks , C TCI

implements the requirement of management system

apar t f rom compl iance with the laws, C TCI has

developed a set of HSE Risk Assessment Procedure (PS-

409-E) and supervises all accountable departments

with performance, pre-identify high-hazard risk items

and effectively manage to reduce occupational injuries.

Moreover, in view of the HSE performance relying on all

employees with full efforts and the key role of "people"

◎CTCI emphasizes QHSE management and has acquired various management system certi�cates and Accident Free Man-hours Proof by the Executive Yuan.

Risky Workplace Review and Inspection Flowchart

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◎ 1. Total HSE Scheme

Between the third quarter of 2013 and 2014, according

to the different positions and duties, the HSE assessment

–manager version (including departmental managers

and project manager), PEM/PPM/PSM/PKM version, and

construction engineer discipline version (including civil

engineering, warehousing, equipment, electrical, pipeline,

instrument panel, steel structure). The assessment

method adopts GTS online test with questions categories

divided into safety commitment, basic concept and HSE

practice. In the future, CTCI will continue to hold the

abovementioned assessment on a regular basis while

planning the targets of assessment for other positions in

order to promote to the entire company. Please refer to

the scheme in Figure 1.

Additionally in view of the Occupational Safety and

Health Act (hereinafter referred to as Occupational Safety

Act) went into force on July 3rd, 2014. To strengthen the

HSE staff with quick control over the key revisions, impact

and influence from the Occupational Safety Act, except

for dispatching personnel to participate in all information

meeting or training seminars regarding occupational

safety act revision held by all government agencies.

Moreover the HSE Division organized a series of activities

in the second half of 2014 to arrange for internal/external

experts or scholars with arrangement for new laws and

practice experience by adopting training seminars, on-

site diagnosis so employees can further understand

the philosophy and revision to Occupational Safety Act

1. Company policy

2. Laws and regulations

3. Practical experience

HSE Manage-ment Division questioning

Trial database Establishment

Test Statistics

Safety commitment

Basic concept

Purpose

1. Clarifying training requirement

2. Strengthening HSR awareness

3. Established corporate safety culture

HSE practice

5~8

Questions

Questions by

occupation/

Current feedback design

Div./Dept.Departmental

Supervisor

(2013 second half, routinely organizing assessment) (started from 2014) (planning and executing in stages)

Respondents

PM PEM/PPMPSM/PKM

DisciplineEngineer

Allemployees

in safety culture, CTCI then further expands HSE to

"total" participation, namely promoting the Total HSE

mechanism.

Total HSE involves all company employees, particularly

non-HSE employees and departmental supervisors

and project managers who will be instructed for the

establishment of correct HSE knowledge through test

evaluation and their familiarity with the HSE requirement

related to their own work, thereby to gradually correct

the safety behavior and attitudes of employees and

accomplish a cultural atmosphere of Total HSE.

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◎ 1~3 Organized Occupational Safety Act related training course

◎ 4~5 External experts conducting diagnosis at site

◎ �e above �gure shows HSE consolidated performance management system.

(as shown in Figure 1~Figure 5) as the corresponding

countermeasure between the company and project HSE,

attaining the health and safety of occupational worker to

comply with the basic requirement of compliance.

R&D on the Latest HSE Management

Technology

As a top international EPC company in Taiwan, CTCI

constantly and actively attempts various technologies

in trend in recent years to search for breakthrough

i n m a n a g e m e n t te c h n o l o g y to o l s . To i n c re a s e

the transmission efficiency of the company's HSE

information and to strengthen the HSE management

system monitoring on projects, utilizing information

technology to assist with routine HSE related activities.

Hence, the HSE consolidated performance evaluation

system is established with optimal information on

the management activities. The performance of HSE

management is improved and such safety and HSE

performance assessment system also expands with

English website reviewing to further connect with

international project HSE practices.

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Subcontractor Assessment

To effectively strengthen the contractors screening

mechanism under the Procurement Control of HSE

management system, the system will provide quarterly

execution of associate Vendor assessment in every half

year through the system computation and analysis in

accordance with the monthly education and training of

the construction site. The system also establishes HSE

assessment items database that could be prepare a list

of collaborative Vendors to the various projects and

conduct the monthly assessment index scoring to the

construction site, in addition to check the project and

contractor scores. Consequently managers can control

the capacity of HSE comprehensive management and

the relevant activity execution effectiveness for all

associate Vendors, conforming to the principles of origin

management and reduce the occurrence of occupational

injuries.

Regulation Identification

"Compliance with regulations and customer requirement"

has long been one of CTCI's HSE policies. The initiation

of regulation identification online operation platform

will implement the conformance of all the relevant

operations of all departments, which establishes a set of

domestic occupational safety, health and environmental

protection regulations through information system

◎ A screenshot of subcontractor system.

integration. This system platform allows management

department to conduct real-time regulation upgrade and

maintenance in addition to providing regular regulations

identification to all departments and projects. Apart from

self-conducting regulation applicability and identification

conformance, the identification outcome of past projects

with similarities to further strengthen the facility and

effectiveness of regulation identification operations, in

addition to exporting statistics report as reference in

review meeting and system recording. The company

departments may apply regulation identif ication

operation to minimize the possible hazards in early stage

and reduce HSE related risks along with the execution of

various activities.

Building Safe and Comfortable Work

Environment

Employees are the most valued assets of CTCI and we

rely heavily on them for project executions. In recent

years, CTCI has performed BBS (Behavior-Based Safety)

and 5S self-management to protect the personal safety

of colleagues. Problems discovered by staff and the

improvement recommendations related to safety and

health will be regularly discussed in the Occupational

Safety and Health Committee meeting of the company.

With the exchange of in-depth discussion during regular

meeting, both the managment and staff will be able to

draft the optimal improvement proposal.

CTCI is happy to see BBS proposal submitted by staff

and has specifically designed the incentive mechanism

for employees to discover all problems and propose

suggestions through BBS. The Safety and Health

Committee wil l submit the case to the quarter ly

Occupational Safety and Health Committee meeting

while ten lucky draws will be made from the list of

proposing. After organizing and sorting the proposals

of that year, the "Enthusiastic Proposal Award" and the

"Best Proposal Award" will be selected with gifts given for

recognition and rewards.

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The above measures reveal C TCI's pursuit of safe

workplace has shifted from "quantity" to "quality".

Safety Work Hours and Occupational Injury

Incident Record

CTCI has been awarded with the 30,518,818-hour of

zero-incident work hour record certificate issued by the

Occupational Safety and Health Administration, Ministry

of Labor to CTCI headquarters between January 8th,

2007 and January 31st, 2015. The records show CTCI's

protection and determination in occupational safety

and come from several specific approaches. First, CTCI

considers the demand for HSE indicator measurement

and risk management principles, followed by taking

regular measurement for occupation injuries statistics

are. The indicator adopted is the Total Recordable

Case Rate (TRCR) (Note 1), Days Away, Restricted, or

Transferred Incidence Rate (DARTIR) (Note 2) defined by

Occupational Safety and Health Administration (OSHA),

and Occupational Injury Yearly Thousand People Rate

(YTR) announced by Ministry of Labor, Executive Yuan.

In 2014, the TRCR of CTCI is 0.08, and DARTIR is 0.02.

The Ministry of Labor data were referred to list the

Occupational Injury YTR for domestic industries, the

manufacturing industry and CTCI Corporation for the past

five years. According to the statistics, there were 2 cases

of Days away from work incidents in occupation safety

records (both personnel of contractors) and 6 cases of

medical injuries (3 cases involving personnel of contractor

and 3 cases involving CTCI colleagues). The occupational

injuries recorded in male and female was 7:1. Moreover,

CTCI does not have any records of occupational diseases.

In 2014, there were 3 cases of violation to relevant

laws and regulations, whose operation was partially

suspended by the competent authority as penalty and

the issuance of 8 notices of improvement. Nonetheless,

the above non-conformance matters have undergone

careful review and improvement by the company before

resuming to operation and correction.

To lower the injury and risk brought by incidents,

the company has established standard procedure in

respond to such situations. When incidents occur, related

departments will form an investigation team to actively

investigate, review and analyze its cause and establish

an improvement and prevention scheme for occurrence

of similar accidents. The specific improvement actions

shall include the implementation of HSE training as well

as the strengthening of labor safety inspection. This year

in response to the revision on Occupational Safety and

Health Acts, CTCI shall change the 24-hour reporting to

procedure to 8 hours to the labor competent authority

for the Days away from work incidents in order to comply

with the laws and regulations.

CTCI has acquired the following qualifications in 2014:

‧CN15506:2011 Certificate of Occupational Safety and Health Management System Qualification

‧ISO 9001:2008 Certificate of Quality Management System

‧OHSAS 18001:2007 Certificate of Occupational Safety and Health Management System

‧ISO 14001:2004 Certificate of Environmental Management System

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NGNG OK

OK

Identification of Requirements

HSE Inspection Team

Requesting Unit All units All units All units All units Irregular Units

HSE Inspection Team

HSE Inspection Team

Review

HSE Inspection Team

Review

HSE Inspection Team

HSE Inspection Team

Management Review Meeting

Management Review Meeting

Reviewing UnitResponsible Unit

Implementation of Identification

Application of Identification

In the regular evaluation, the inspection team should suggest the

grading of significant environmental aspects

and high safety and health risk

Responsible units implement the

identification and risk assessment of

environmental aspects and safety and health

hazards

The responsible unit should plan control and plan significant

environmental impacts and high

safety and health risk.

Implements improvement and

control

Organization expansion or reduction,

responsibility shift, operational activity

change

The responsible unit should plan control and plan the

provisional assessment according to the grading of significant environmental

impacts and high safety and health risk.

Determines the grading of significant

environmental aspects and high safety and

health risk

Notification of Regular Evaluation

Request of provisional assessment

New chemical substances, new equipment, new processes, correction of a HSE problem and other regular requirements of the management representative

Revises the HSE policy Record and analysis

Reviews the identification and risk

assessment of HSE hazards

0

3

6

9

12

1513.47113.559 13.363

12.573 12.015

4.378 4.176 4.020 3.721 3.453

0.154 0.294 0.200 0.2100.357

■ CTCI■ National Average■ Construction

Inudstry Average

2010 2011 2012 2013 2014 Year

%

0.00

0.25

0.50

0.75

1.00

0

10000000

20000000

30000000

40000000

0.05 0.04 0.06 0.05 0.080.01 0.02 0.01 0.03 0.02

2010 2011 2012 2013 2014 Year

27,3

28,1

54

27,2

77,8

19

31,5

08,7

08

33,5

95,1

76

19,6

62,9

26

% Hours

■ Total Hours Worked■ TRCR■ DARTIR

Occupational Injury YTR2010-2014 Occupational Injury YTR, TRCR & DARTIR

Identification and Risk Assessment of Environmental Aspects and Health and Safety Hazards

Note 2: Total Recordable Case Rate, TRCR=

TOTAL RECORDABLE CASES (INCLUDING DEATH,LOST TIME INJURY, RESTRICTED OR JOB TRANSFERRED, MEDICAL TREATMENT INCIDENCE)

TOTAL HOURS WORKEDX200,000

Note 3: Days away, restricted, or transferred incidence rate, DARTIR=DAYS AWAY,RESTRICTED,OR TRANSFERRED INCIDENCE

TOTAL HOURS WORKEDX200,000

Note 4: Occupational Injury YTR=THE TOTAL NUMBER OF OCCUPATIONAL INJURY

THE NUMBER OF EMPLOYEESX1,000 (excluding traffic accidents)

PS. In 2014, some projects contracted by CTCI are through the forms of joint venture (JV), and according to the project contracts, the construction scope shall be classified into the JV (not just CTCI); hence, the total hours worked were not calculated in CTCI's total hours worked (approximately 8.56 million work hours in 2014).

0.00

0.25

0.50

0.75

1.00

0

10000000

20000000

30000000

40000000

0.05 0.04 0.06 0.05 0.080.01 0.02 0.01 0.03 0.02

2010 2011 2012 2013 2014 Year

27,3

28,1

54

27,2

77,8

19

31,5

08,7

08

33,5

95,1

76

19,6

62,9

26

% Hours

■ Total Hours Worked■ TRCR■ DARTIR

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Professional Participation and Social Services

A s a member of the society, CTCI actively plays

the role of corporate citizen and is devoted

to participate in association, institutes and various

infrastructure projects, contributing the knowledge

and service of the company in engineering expertise

with active commitment in different social charity

events, leading in community promotion, and caring

for the environment and ecology as well as leading all

employees in social charities. Moreover, CTCI gives back

what it acquires the society to help more people in need.

The company offers employment opportunities and to

persons with mental and physical disability, contributing

computer equipment to help the disadvantaged and to

contribute efforts to the society through different social

participation measures.

The following dimensions describe CTCI's participation

in institutes, association activities, commitment in

infrastructure projects, feedback to the communities, and

participation in social charity events.

Participating in Associations and Institutes

With an engineering expertise background, CTCI has

been actively involved in the professional nature-

based science associations, and served as a directorate

and supervisors in organizations to promote the

development of conferences as to improve the industry

standards along with colleague industries. In 2014, CTCI

participated in a total of 46 science associations (67 for

the whole group). To assist with conference functioning

of science associations, CTCI had invested a total of NT$

2,992,878 (NT$4,013,678 for the Group) in advertisement,

membership and sponsorship fees.

Additionally to encourage colleagues to participate in

professional groups and upgrade personal skills, the

company has developed subsidies to encourage the

employees for professional and academic interchange.

In 2014, the company has granted 643 persons (888

persons from the whole group), amounting to a total of

NT$412,488 (NT$ 575,688 for the group).

In the process of participating in science associations,

CTCI has also played its expertise in the engineering

domain into full play by actively providing and sharing

its knowledge. For example, CTCI provided information

to Taiwan Institute of Chemical Engineers when building

the "Taiwan Chemical Engineering History Museum."

CTCI shared the "Execution Experience of Engineering

Consultants in Cross-Strait Incineration Construction

Items" at "The 5th Cross-Strait Engineering Consulting

Forum" under the invitation of The Chinese Association of

Engineering Consultants, and published three papers on

"energy-saving and carbon reduction," "rotary machine

technology," and "environmental management" at the

Chinese Petroleum Institute assembly. In the future, CTCI

will continue to participate in association and institutes

in order to contribute to the activation of industry

knowledge and economies.

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List of Institutes and Associations Directors and Supervisors Held by CTCI in 2014

Name of Association/Institution Director Supervisor

Chinese Institute of Engineers (Head) Andy Sheu John H. Lin

Chinese Institute of Engineers (Kaohsiung Branch) Pi- Chuan Chen Pao-Yao Pan

Chinese Petroleum Society John T. Yu Pi- Chuan Chen

Sino-Arabian Cultural & Economic Association John T. Yu

Chinese International Economic Cooperation Association John T. Yu

Taiwan Institute of Chemical Engineers John H. Lin, Kuen-Tian Chang

Chung-Hwa Railway Industry Development Association Michael Yang

The Chinese Arbitration Association, Taipei Po-Chien Wang

Middle East Business Association K. Y. Chang

The Chinese Association of Engineering Consultants, Taipei John T. Yu

The Chinese Association of Engineering Consultants, Taipei John H. Lin Andy Sheu

Taiwan Welding Society Chia-Hsing Wang Zong-Ling Zhang

Chinese Society of Mechanical Engineers John H. Lin

TISC (Taiwan Institute of Steel Construction Yuan-Fu Liao

Chinese Society of Structural Engineering Shyi-Yun Jean, Ching-Hsiang Tseng

Pressure Vessel Association Chey-Chan Lee

Sino-Indonesia Cultural and Economic Association John T. Yu

Taiwan Safety Council John T. Yu

India Business Association John H. Lin

Cross-Strait CEO Summit John T. Yu (Alternate Member)

Chung -Hwa Nuclear Society Andrew Tsai

Taiwan Nuclear Grade Industry Association Andrew Tsai

Proactive Introduction and Development of New Engineering Technology

C TCI spares no ef for ts in the int roduc t ion and

development of new technology, driving the company to

take up a market share in the competition of international

EPC turnkey engineering.

These new technologies, including the design of

technical quantitative risk assessment for increase of

process safety research, visualization factory technologies,

P&ID Rule-based automation design, BIM technology,

development of spherical tank design system, and design

application of optimization of MRT bulk supply substation

harmonic filter. Construction technology with mobile

devices installed for application in site construction,

building modular units and modularization construction

application, and concrete-filled double rectangular steel

tubing. The pilot-run technologies include: pilot expert

system development, and pilot-run and EPCK seamless

connection technology. The introduction and R&D of

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these engineering technologies are related, which not

only help upgrade industrial competitiveness but also

Funding Invested in R&D in the Past 3 Years

Manpower Invested in R&D in the Past 3 Years

Item/Year 2012 2013 2014

Net Revenue (Unit: Thousands NTD) 34,824,383 31,446,326 38,060,203

R&D Expense (Unit: Thousands NTD) 95,378 92,576 81,630

Proportion of R&D Expense to Revenue (%) 0.27％ 0.29％ 0.21%

connect the domestic engineering technologies with the

world.

Unit: Thousands NTD

Year 2012 2013 2014

Number of persons 50 people 46 people 44 people

Participation in Infrastructure Projects

Moreover, CTCI also specializes in its engineering

professionalism by devoting in infrastructure with

the best construction quality, upgrading national

engineering development standards, bringing the

public with convenience in life and transportation, while

effectively achieving the objectives in energy saving and

carbon reduction.

With regards to participation in infrastructure, CTCI is

committed in public transportation system, power plant

and sewage as well as other engineering field. Among

which there are many projects of massive difficulty;

however, the company upholds a fearless spirit by

continuing to make breakthrough, innovate and seek

for the optimal solutions. Not only does the company

receive recognition from the government but also makes

excellent contribution to Taiwan and other countries.

In the example of rec ycl ing plant (or k nown as

incineration plant), there were 24 incineration plants in

Taiwan in 2014 and the quantity of wastes going to the

plant summed up to 6,420,400.01 metric tons. The KD

Holding Corporation subordinated to the Environment &

Resources Business Operations operated 8 incineration

plants in Taiwan while the total quantity of wastes going

to the 8 incineration plants was 2,129,022.23 metric tons.

The total handling quantity accounted for 2,106,576.23

metr ic tons while the wastes going to the plant

belonging to general wastes were 1,649,271.31 tons and

the general industrial wastes accounted for 479,750.92

metric tons, equivalent to handling the annual garbage

quantity produced by 5.24 million people (calculated

on the approximate 0.863KG produced per person per

day from the 2014 statistics prepared by the Waste

Administrative Office, EPA, Executive Yuan) and the

industrial wastes produced by about 17,000 factories.

The total waste going to the two waste incineration

plants in Macao in 2014 was 457,371 metric tons. In

particular, the general wastes accounted for 447,591

metric tons and the industrial wastes accounted for

9,780 metric tons. The general wastes of all Macao areas

are within the scope of service by CTCI Environment &

Resources Business Operations, serving 630,000 people in

population.

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Participation in Projects and Contribution of CTCI and KD Holding Corporation Subordinated to the Environment & Resources Business Operations in 2014

Category of Public

ConstructionProject Name Contracted Part Contribution to the Public

Public

Transportation

System

Electromechanical

systems engineering of

Taipei Songshan MRT

EPC contracting After the official opening of Taipei MRT Songshan

Line (Ximen-Songshan Staion) on November

15, 2014, it becomesthe third west-east bound

operatin line after Bannan Line and Xinyi Line. It is

in direct operation as the Xiaonanmen Line and

Xindian Line under Route No. 3, which intersects

with Blue Line, Red Line, Orange Line, and Brown

Line for transfer, effectively soothing the crowding

at urban core and providing citizens with a more

time-saving and convenient transportation service.

Public

Transportation

System

Equipment operation

and maintenance of

power system at 161KV

main substation, and

11.4KV main switching

stations of Terminal 1

and Terminal 2

Equipment operation and

maintenance at 161KV main

substation of Taoyuan Airport, and

main switching stations of Terminal 1

and Terminal 2

Maintenance of airport electricity at arrival and

departure lobbies.

Public

Transportation

System

Maintenance work of

water and electrical

equipment at Bannan

Line

tenance and troubleshooting of water

and electrical equipment for Taipei

MRT.

Providing MRT with complete water and electrical

maintenance

Public

Transportation

System

Maintenance work of

firefighting equipment

at Bannan Line

Regular maintenance and

troubleshooting of firefighting

equipment

Providing MRT with complete water and electricity

maintenance.

Public

Transportation

System

Taoyuan MRT Airport

Line T&C Work

Dynamic integration testing Assisting with the construction between Taoyuan

City and Taipei City MRT System transport network

so that Taoyuan City will gradually develop

convenience, comfort, sustainability, and prosperity.

Water resource

& wastewater

treatment

Operation and

maintenance of gravel

purification facility

between New Taipei

City Water Resource

Center, Ximei, Nanzi

Ditch, Dahan River, and

Xindian River Valley.

Routine operation and maintenance

of facilities, machinery, equipment and

power control panels, water quality

sampling and test analysis, removal

and disposal of sludge and waste,

equipment repair and improvement,

emergency repair and restoration

Assisting New Taipei City to effectively improve the

water quality of rivers within the administration.

Others Operation and

maintenance contracts

on air conditioning

system

Air conditioning system equipment

operation, maintenance and

troubleshooting services at outpatient

building of Kaohsiung Veterans

General Hospital, emergency building

and administration building

Providing the hospital with clean air conditioning.

Note: The list refers to projects with significant contributions to the local society, economics, labor safety and environment in 2014.

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The employment of operational maintenance personnel,

guards and cleaning personnel for one single plant

can provide about 60 or more local employment

opportunities. The 9 incineration plants under the

operations of CTCI Environment & Resources Business

Operations can provide 550 employment opportunities.

Moreover, during the annual overhaul period, one single

plant will require additional 60 or more construction

workers and provide 550 employment opportunities

during the annual overhaul period.

Additionally with contribution in infrastructure such as

power plant, sewage, waste water treatment, and air

pollution control, CTCI appeals in customer demand, uses

innovative thinking and builds up new operation model

to provide world-class engineering services. CTCI has

always valued innovation R&D and continues to invest in

funding and human resource in the field of R&D.

Promoting Activities to Communities

Shilin District is filled with atmosphere of humanities and

culture and also the location of CTCI Headquarters. CTCI

upholds to the concept of community hospitality by

paying attention to the culture of Shilin District over the

long-run in addition to cooperating with local groups in

attempt to help the residents understand the ecology,

culture and historical characteristics of Shilin District

through various activities.

CTCI has sponsored and organized the " Shilin Cultural

Festival: Scenic Zhishan" with the Zhishan Cultural

and Ecological Garden for 4 years in a row, under the

sponsorship and guidance of Ministry of Culture and

Taipei City Government Department of Cultural Affairs.

The festival intends to gather the cultural elites from

Shilin-Tianmu Area through music and humanity arts,

jointly promoting the development of local culture.

The activities also co-organized by local enterprises,

cultural museum, schools, and arts and cultural groups

while charity groups and community and vil lage

residents surrounding Shilin and Tianmu are invited

to participate. The Event expects to draw public with

enthusiastic participation through Shilin water and green

environment experience day, music performance, Shilin

Cultural Museum, and music marathon.

In particular, the "Shale up Shilin with Music" music

concernt held in the Headquarters Building of CTCI

Group. On the day of activity, "Music Instrument Box"

features a trio consisting of piano, flute and clarinet to

interpret the sound and rhythm of nature. The Zhishan

Elementary School "4.5 Degree Sky" band features the

Ukulele performance with lovely and vibrant borderless

music feast. This cultural festival has become one of

the indicative annual events in Shilin and Tianmu Area.

This year a special "Zhishan-Shilin Cultural Festival

Outcome Manual" has been prepared to record the

origin and development of events, which is scheduled

to be distributed during the 2015 Cross-Strait (Xiamen)

Cultural Industries Fair. Using the integration of music

and art activities, local enterprises, local students and

communities can promote local cultural development

through feedback , care and interchange to fulfi l l

corporate social responsibilities.

Helping the Disadvantaged for a Loving Society

Faced with the fast-changing information technology,

CTCI requires a massive number of computers for

computer-aided design and need to replace software/

hardware tools frequently. When replacing computer

equipment, C TCI specifically donates phased-out

computer equipment to social charity groups, which

not only reduces burden on the environment but also

contributes efforts to the domestic education.

CTCI has donated phased-out computers through the

help of Triple-E Institute to sort the computer equipment

before donating to disadvantaged social and welfare

groups or individuals in need of help. In 2014, CTCI

has donated a total of 232 computers, 135 monitors, 9

printers, 150 laptops, and 9 servers.

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Activities and Number of Participants in Zhishan and Shilin Cultural Festival in Last 3 years

Activities Seats

reserved in 2012

Seats reserved in 2013

Seats reserved in 2014

Participants in 2012



1. CTCI 200 200 200 268 281 219

2. The Lin Yutang House 80 90 90 125 51 77

3. Shilin District Office 100 100 100 117 71 87

4. Zhishan Cultural and Ecological Garden 100 - 80 112 - 93

5. Shihlin Electric 200 200 200 233 271 211

6. Ch'ien Mu House 40 40 40 62 75 60

7. Dayeh Takashimaya 150 150 150 45 158 188

8. Digital Art Center, Taipei - 100 70 - 89 93

9. Shung Ye Museum of Formosan Aborigines - 70 - - 89

10. Kuo Yuan Ye Museum of Cake and Pastry - 60 - - 101

Opening Press Conference and Music Marathon of the Closing Ceremony 707 1217

Number of Photos Received in the Photo Contest -

Historic Photos Exhibition -

Drawing Experience Concert (held in 2013) 174

Drawing Concert Popularity Vote (held in 2013) 4727

Number of children guides participated 31 42

Situational simulations of Zhishanyuan Site military navigation event (held in 2013) 2500

Zhishanyuan military guide trip participants (held in 2013) 27095

Bird specimen exhibition and children guides (held in 2014) 31765

Total 36367 34242

Number of volunteers 255 273

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The first contact between Children Are Us Foundation

Minsheng Store and CTCI could be dated by to 2009 when

CTCI established the headquarters in Shilin. CTCI started

contacting Children Are Us Foundation because of the

administration company of the Headquarters Building and

even invites the children with mental retardation problemto

set up a booth for selling bread and cake at the building every

other week. For nearly 6 years since 2009, CTCI employees

have been able to taste the bread with craftsmanship and

love from these children every other week.

Xiang-Yi Mai who leads children with mental retardation

for setting up booth in CTCI said with a smile: "The children

were always happy when they knew they are coming to

CTCI. The customers in CTCI are very friendly and bring

their own shopping bag. They also encourage the children

during the sales or voluntarily help us when we are too

busy. Sometimes they would pull the colleagues here with

enthusiasm or broadcast in the building to remind people

of the bread selling services offered by Children Are Us

Foundation.

Moreover, Xiang-Yi Mai also observed: "Some customers

worry that they will not be able to buy the products since

they will be late, they would call us in advance and ask us

to safe products for

t h e m . S o m e C TC I

customers would also

come to the Children

Are Us Foundation

bakery at Mingsheng

E . Road af ter they

h a v e r e s i g n e d o r

dur ing non-booth

time to order pastry

or wedding cake. The

habit of charity seems

to remain in CTCI employees and it is quite touching for us.

Other than weekly booth, CTCI also invites Children Are

Us Foundation to set up booth at the site whenever

there are events or rooms. "We really appreciate CTCI's

encouragement for children with mental retardation so we

can share our products with more people. Most importantly,

the children with mental retardation have the opportunity

to get in touch with people, increase their confidence,

and we hope our relation will last long and continue

permanently."

Children with Mental Retardation Problem Love to Sell Bread to CTCI!Children Are Us Foundation, Mingsheng Store by Xiang-Yi Mai

Empathy and Devotion in Disaster Relief

In the morning of August 1st, 2014, a devastating gas

explosion accident took place in Qinzheng and Lingya

District of Kaohsiung City in Taiwan, resulting in severe

disastrous situations; and the society had devoted much

manpower and material support. CTCI also showed

empathy and donated NT$5 million to the Kaohsiung

City Government Disaster Relief account to help the

victims of disaster to pull through and rebuild their

home. Apart from corporate donation, we also developed

the "Regulations Governing Corporate Charity Volunteer

Services" to encourage our employees to devote in

volunteer services after work and participate in various

social charity services, therefore giving feedback to the

society with personal efforts.

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Honor Roll for Social Participation

Awards Description

Honor Roll – "Community Participation"

Letter of appreciation and souvenirs issued by Wild Bird Society of Taipei

Continuing the promotion of local culture development and neighborhood hospitality by cooperating with Zhishan Cultural and Ecological Garden to co-sponsor the "2014 Zhishan –Shilin Cultural Festival" under the guidance of Ministry of Culture and Department of Cultural Affairs, Taipei City Government. CTCI received the letter of appreciation and souvenirs from the Wild Bird Society of Taipei.

Taipei City Workplace Health Excellence – Health Excellence Award

Commitment in building workplace health with enthusiasm and protecting employee health; received "Taipei City Workplace Health Excellence – Health Excellence Award" from Taipei City Government

Red Cross Certificate Received certificate of appreciation from Red Cross for donation.

Certificate of Appreciation issued by Taiwan CPC

Participated in "CPC Winter Charity Sales Campaign" and received Certificate of Enthusiasm and Charity from Taiwan CPC.

Honor Roll – "Social Contribution and Social Services"

Certificate of Appreciation issued by the Chinese Institute of Environmental Engineering

CTCI was awarded with certificate of appreciation issued by the Chinese Institute of Environmental Engineering for sponsorship.

Golden Thumb Awards for PPIP issued by the Ministry of Finance

Houli Incineration Plant under the operation of CTCI Environment & Resources Business Operations participated in public construction, collecting private-sector funds and management efficiency and government authorities to provide Taiwan nationals with high-quality public construction and services and received the Golden Thumb Awards for PPIP in category of private-sector management team excellence award.

Outstanding Electrical Engineering Award

CTCI Deputy Chief Engineer Dong-Liang Zhang has worked in CTCI for 28 years and initially engaged in the power transmission system related design work for petrochemical plant renovation construction and traffic transportation infrastructure. He has been devoted in the construction and improvement projects for Great Taipei MRT traffic transportation system since 1989 with excellent contribution to the company and society and was awarded with the 2014 "Outstanding Electrical Engineer Award" issued by the Chinese Institute of Electrical Engineering.

Honor Roll – "Social Charity"

Certificate of Appreciation issued by Triple-E Institute

CTCI was awarded with Certificate of Appreciation for contribution to the campaign on "Your old computer, his new hope" organized by Triple-E Institute.

Medal of Appreciation issued by Occupational Safety And Health Administration, Ministry Of Labor

Actively assisting various occupational safety and health promotion activities with enthusiasm in labor safety. Awarded with medal of appreciation.

Honor Roll "Human Rights Protection"

Breastfeeding Room Excellence Award issued by Taipei City Government Department of Health

CTCI Headquarters Building awarded with Breastfeeding Room Excellence Award issued by Taipei City Government Department of Health (Period: 2013/9~2016/8)

Honor Roll – "Quality and Safety Health Environment"

Construction Quality and Labor Safety and Environmental Protection Performance Excellence Award

CPC Talin #10 SRU Sulfur Recovery Plant EPC Project awarded with Construction Quality and Labor Safety and Environmental Protection Performance Excellence Award issued by proprietor, CPC Construction Project Office.

Best Contractor Safety Award in 2013

Qatar cracking furnace and ethylene storage tank awarded with Best Contractor Safety Award in 2013 issued by proprietor QAPCO.

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Awards Description

Excellence in Labor Safety Competition

The construction project of Oriental Petrochemical (Taiwan) Co., Ltd. Guanyin Plant No. 2 participated in the Contractor Labor Safety Competition held by the proprietor Oriental Petrochemical (Taiwan) Co., Ltd. and won the 3rd place.

Certificate of Appreciation for High-Temperature Worker Heat-related Hazards Prevention Demonstration Seminar

Taipei Power Corporation Talin Power Plant renewal and restructuring co-organized the 2014 High Temperature Worker Heat-related Hazards and Prevention Demonstration Seminar.

Certificate of Appreciation for Enthusiastic Labor Safety and Charity

CTCI took initiative to participate in TOSHMS Northern District Promotion Association to actively devote in the promotion of TOSHMS for interchange of safety and health management promotion. Awarded with the Certificate of Appreciation for Enthusiastic Labor Safety and Charity presented by Minister Huang-Ran Fu of Occupational Safety And Health Administration, Ministry Of Labor.

Certificate of Labor Safety Distinguished Award issued by New Taipei City

Under the operation of CTCI Environment & Resources Business Operations, Shulin and Xindian Incineration Plants were awarded with the Certificate of Labor Safety Distinguished Award issued by New Taipei City Government.

Certificate of Labor Safety Excellence Award issued by Ministry of Labor

Xindian Incineration under the operation of CTCI Environment & Resources Business Operations was awarded with the Certificate of Labor Safety Excellence Award issued by Ministry of Labor.

Certificate of Zero-Disaster Labor Records issued by Ministry of Labor

Houli Incineration Plant and Xindian Incineration Plant under the operation of CTCI Environment & Resources Business Operations have accumulated over 800,000 labor hours with zero-disaster and over 1.2 million labor hours with zero disaster respectively.

Certified for environmental education facility and premise

Keelung and Miaoli Incineration Plants certified by the environmental education facility and premise.

Air Quality Purification Area Adoption Distinguished Award issued by Environmental Protection Administration

Tainan Refuse Incineration Plant under the operation of CTCI Environment & Resources Business Operations was awarded with Quality Purification Area Adoption Distinguished Award issued by Ministry of Economic Affairs.

Energy-Saving Excellence Award issued by Ministry of Economic Affairs

Tainan Refuse Incineration Plant under the operation of CTCI Environment & Resources Business Operations was awarded with Energy-Saving Excellence Award issued by Ministry of Economic Affairs.

Taiwan Enterprise Environmental Protection Award-Silver Prize issued by Environmental Protection Administration

Shulin Incineration Plan under the operation of CTCI Environment & Resources Business Operations was awarded with the 23rd Taiwan Enterprise Environmental Protection Award-Silver Prize issued by Environmental Protection Administration.

Performance Audit Special Award issued by Environmental Protection Administration

Both Shulin and Houli Incineration Plants under the operation of CTCI Environment & Resources Business Operations were awarded with the Performance Audit Special Award issued by Environmental Protection Administration.

Performance Audit Distinguished Award issued by Environmental Protection Administration

The Taonan Incineration Plant under the operation of CTCI Environment & Resources Business Operations was awarded with the Performance Audit Distinguished Award issued by Environmental Protection Administration.

Performance Audit Excellence Award issued by Environmental Protection Administration

Xindian, Miaoli, and Tainan Refuse Incineration Plants under the operation of CTCI Environment & Resources Business Operations were awarded with the Performance Audit Excellence Award issued by Environmental Protection Administration.

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Third Party Verification Statement

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Appendix I: Correspondence between this CSR Report and GRI G4.0 Guideline

I. Disclosure Status in Correspondence to GRI G4.0 Guideline (The following are verified by outside third-party as detailed in the Independent Assurance Opinion Statement.)

Status: V: Fully disclosed; O: Partially disclosed; △ : Not applicable; X: Not disclosed

Indicator Description Status Corresponding Section Note

PART I: STANDARD DISCLOSURES

1. Strategy and Analysis

G4-1 Provide a statement from the most senior decision-maker of the organization about the relevance of sustainability to the organization and the organization's strategy for addressing sustainability.

V Message from the Top Management

G4-2 Provide a description of key impacts, risks, and opportunities.

V 1. Operation and Governance \ Corporate Governance \

2. Operation and Governance \ Corporate Governance \ Improvement of Internal Control System

3. Operation and Governance \ Future Prospects

2. Organizational Pro�le

G4-3 Report the name of the organization. V Operation and Governance \ Corporate Overview

G4-4 Report the primary brands, products, and services.

V Operation and Governance \ Corporate Overview

G4-5 Report the location of the organization's headquarters.


G4-6 Report the number of countries where the organization operates, and names of countries where either the organization has significant operations or that are specifically relevant to the sustainability topics covered in the report.


G4-7 Report the nature of ownership and legal form.

V Operation and Governance \ Finance Disclosure\Shareholding Structure

G4-8 Report the markets served (including geographic breakdown, sectors served, and types of customers and beneficiaries).


G4-9 Report the scale of the organization, including:Total number of employees, total number of operations, net sales (for private sector organizations) or net revenues (for public sector organizations), total capitalization broken down in terms of debt and equity (for private sector organizations), quantity of products or services provided

V 1. Operation and Governance \ Corporate Overview

2. Operation and Governance \ Strengthen the Supervision Function of the Board

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G4-10 a. Report the total number of employees by employment contract and gender.

b. Report the total number of permanent employees by employment type and gender.

c. Report the total workforce by employees and supervised workers and by gender.

d. Report the total workforce by region and gender.

e. Report whether a substantial portion of the organization's work is performed by workers who are legally recognized as self-employed, or by individuals other than employees or supervised workers, including employees and supervised employees of contractors.

f. Report any significant variations in employment numbers (such as seasonal variations in employment in the tourism or agricultural industries).

V Social Participation \ Establishing a Healthy andHappy Work Environment \ Employee Care \Improve Management System and Value Human Rights

G4-11 Report the percentage of total employees covered by collective bargaining agreements.

V Social Participation \ Building Healthy and Happy Work Environment \ Employee Care \Improve Management System and Value Human Rights

All CTCI's employeesare protectedthrough formal signing of recruitment contract.

G4-12 Describe the organization's supply chain. V Social Participation \ Building Friendly and Harmonious Partnership \ Providing Clients with OutstandingEngineering Quality \ Systematic Supply-Chain with Sustainable Management

G4-13 Report any significant changes during the reporting period regarding the organization's size, structure, ownership, or its supply chain, including:* Changes in the location of, or changes in,

operations, including facility openings, closings, and expansions.

* Changes in the share capital structure and other capital formation, maintenance, and alteration operations (for private sector organizations).

* Changes in the location of suppliers, the structure of the supply chain, or in relationships with suppliers, including selection and termination.

V Social Participation \ Building Friendly and Harmonious Partnership \ Providing Clients with Outstanding Engineering Quality \ Systematic Supply-Chain with Sustainable Management

There was no significant change in organizational structure or operation during the reporting period.

3. Commitments To External Initiatives

G4-14 Report whether and how the precautionary approach or principle is addressed by the organization.

V Operation and Governance \ CorporateGovernance \ Establishment of Enterprise Self-Disciplinary RegulationsSocial Participation \ Building Friendly and Harmonious Partnership \ Building Safe Work Environment\ Stringent Management of HSE System

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G4-15 List externally developed economic, environmental and social charters, principles, or other initiatives to which the organization subscribes or which it endorses.

V CSR Promotion \ CSR Policy Statement

G4-16 List memberships of associations (such as industry associations) and national or international advocacyorganizations in which the organization:* Holds a position on the governance body* Participates in projects or committees* Provides substantive funding beyond

routine membership dues* Views membership as strategic

V Social Participation \ Professional Participationand Social Services \ Participating in Associations and Institutes

4. Identi�ed Material Aspects and Boundaries

G4-17 a. List all entities included in the organization's consolidated financial statements or equivalent documents.

b. Report whether any entity included in the organization's consolidated financial statements or equivalent documents is not covered by the report.

V 1. Operation and Governance \ Corporate Overview

2. Operation and Governance \ CorporateGovernance \ Continuation to StrengthenCorporate Capabilities

G4-18 a. Explain the process for defining the report content and the Aspect Boundaries.

b. Explain how the organization has implemented the Reporting Principles for Defining Report Content.

V Evaluation and Response to Stakeholders and Materiality Issues

G4-19 List all the material Aspects identified in the process for defining report content.


G4-20 For each material Aspect, report the Aspect Boundary within the organization, as follows:* Report whether the Aspect is material

within the organization* If the Aspect is not material for all entities

within the organization (as described in G4-17), select one of the following two approaches and report either:

-- The list of entities or groups of entities included in G4-17 for which the Aspect is not material or-- The list of entities or groups of entities included in G4-17 for which the Aspects is material* Report any specific limitation regarding the

Aspect Boundary within the organization

V Evaluation and Response to Stakeholders and Materiality Issues Appendix I: Correspondence between this CSR Report and GRI G4.0 Guideline \ II. Boundary of Material Aspect Within and Outside Organization

G4-21 For each material Aspect, report the Aspect Boundary outside the organization, as follows:* Report whether the Aspect is material

outside of the organization* If the Aspect is material outside of the

organization, identify the entities, groups of entities or elements for which the Aspect is material. In addition, describe the geographical location where the Aspect is material for the entities identified

* Report any specific limitation regarding the Aspect Boundary outside the organization

V Evaluation and Response to Stakeholders and Materiality Issues Appendix I: Correspondence between this CSR Report and GRI G4.0 Guideline \ II. Boundary of Material Aspect Within and Outside Organization

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G4-22 Report the effect of any restatements of information provided in previous reports, and the reasons for such restatements.

V Editor's Note No Differences in Comparison toPrevious Report

G4-23 Report significant changes from previous reporting periods in the Scope and Aspect Boundaries.

V Editor's Note No Differences in Comparison toPrevious Report

5. Stakeholder Engagement

G4-24 Provide a list of stakeholder groups engaged by the organization.


G4-25 Report the basis for identification and selection of stakeholders with whom to engage.


G4-26 Report the organization's approach to stakeholder engagement, including frequency of engagement by type and by stakeholder group, and an indication of whether any of the engagement was undertaken specifically as part of the report preparation process.


G4-27 Report key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting. Report the stakeholder groups that raised each of the key topics and concerns.


6. Report Pro�le

G4-28 Reporting period (such as fiscal or calendar year) for information provided.

V Editor's Note

G4-29 Date of most recent previous report (if any) V Editor's Note

G4-30 Reporting cycle (such as annual, biennial) V Editor's Note

G4-31 Provide the contact point for questions regarding the report or its contents.

V Editor's Note

7. GRI Content Index for 'In accordance' – Core

G4-32 a. Report the 'in accordance' option the organization has chosen.

b. Report the GRI Content Index for the chosen option (see tables below).

c. Report the reference to the External Assurance Report, if the report has been externally assured. GRI recommends the use of external assurance but it is not a requirement to be 'in accordance' with the Guidelines.

V Appendix 1: Correspondence between this CSR Report and GRI G4.0 Guideline \ I. Disclosure Status in Correspondence to GRI G4.0 Guideline

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8. Assurance

G4-33 a. Report the organization's policy and current practice with regard to seeking external assurance for the report.

b. If not included in the assurance report accompanying the sustainability report, report the scope and basis of any external assurance provided.

c. Report the relationship between the organization and the assurance providers.

d. Report whether the highest governance body or senior executives are involved in seeking assurance for the organization's sustainability report.

V Third Party Verification Statement

G4-34 Report the governance structure of the organization, including committees of the highest governance body. Identify any committees responsible for decision-making on economic, environmental and social impacts.

V Operation and Governance \ Corporate Governance \ Strengthen the Supervision Function of the Board

G4-35 Report the process for delegating authority for economic, environmental and social topics from the highest governance body to senior executives and other employees.

V CSR Promotion

G4-36 Report whether the organization has appointed an executive-level position or positions with responsibility for economic, environmental and social topics, and whether post holders report directly to the highest governance body.

V CSR Promotion

G4-37 Report processes for consultation between stakeholders and the highest governance body on economic, environmental and social topics. If consultation is delegated,describe to whom and any feedback processes to the highest governance body.

V 1. Social Participation \ Employee Care \ Sound Communication Channel to Understand What Employees are Thinking

2. Operation and Governance \ Corporate Governance \ Enforcement of Information Disclosure

G4-38 Report the composition of the highest governance bodyand its committees by:* Executive or non-executive* Independence* Tenure on the governance body* Number of each individual's other

significant positions and commitments, and the nature of the commitments

* Gender* Membership of under-represented social

groups* Competences relating to economic,

environmental and social impacts* Stakeholder representation

V Operation and Governance \ CorporateGovernance \ Strengthen the Supervision Function of the Board \ CTCI Board Directors

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G4-39 Report whether the Chair of the highest governance body is also an executive officer (and, if so, his or her function withinthe organization's management and the reasons for this arrangement).

V Chairman &CEO John T. Yuis the highest governance body of the company.

G4-40 Report the nomination and selection processes for thehighest governance body and its committees, andthe criteria used for nominating and selecting highestgovernance body members, including:* Whether and how diversity is considered* Whether and how independence is

considered* Whether and how expertise and

experience relating to economic, environmental and social topics are considered

* Whether and how stakeholders (including shareholders) are involved


G4-41 Report processes for the highest governance body to ensure conflicts of interest are avoided and managed.Report whether conflicts of interest are disclosed to stakeholders, including, as a minimum:* Cross-board membership* Cross-shareholding with suppliers and

other stakeholders* Existence of controlling shareholder* Related party disclosures


G4-42 Report the highest governance body's and senior executives' roles in the development, approval, and updating of the organization's purpose, value or mission statements, strategies, policies, and goals related to economic, environmental and social impacts.

V CSR Promotion

G4-43 Report the measures taken to develop and enhance the highest governance body's collective knowledge of economic, environmental and social topics.

x

G4-44 a. Report the processes for evaluation of the highest governance body's performance with respect to governance of economic, environmental and social topics. Report whether such evaluation is independent or not, and its frequency. Report whether such evaluation is a self-assessment.

b. Report actions taken in response to evaluation of the highest governance body's performance with respect to governance of economic, environmental and social topics, including, as a minimum, changes in membership and organizational practice.


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G4-45 a. Report the highest governance body's role in the identification and management of economic, environmental and social impacts, risks, and opportunities. Include the highest governance body's role in the implementation of due diligence processes.

b. Report whether stakeholder consultation is used to support the highest governance body's identification and management of economic, environmental and social impacts, risks, and opportunities.


G4-46 Report the highest governance body's role in reviewing the effectiveness of the organization's risk management processes for economic, environmental and social topics.

x

G4-47 Report the frequency of the highest governance body's review of economic, environmental and social impacts, risks,and opportunities.


G4-48 Report the highest committee or position that formally reviews and approves the organization's sustainability report and ensures that all material Aspects are covered.

x

G4-49 Report the process for communicating critical concerns tothe highest governance body

V 1. Social Participation \ Employee Care \ \ Sound Communication Channel to Understand What Employees are Thinking

2. Operation and Governance \ Corporate Governance \ Enforcement of Information Disclosure

G4-50 Report the nature and total number of critical concerns that were communicated to the highest governance body and the mechanism(s) used to address and resolve them.

x

G4-51 a. Report the remuneration policies for the highest governance body and senior executives for the below types of remuneration:

* Fixed pay and variable pay:––Performance-based pay––Equity-based pay––Bonuses––Deferred or vested shares* Sign-on bonuses or recruitment incentive

payments* Termination payments* Clawbacks* Retirement benefits, including the

difference between benefit schemes and contribution rates for the highest governance body, senior executives, and all other employees.

b. Report how performance criteria in the remuneration policy relate to the highest governance body's and senior executives' economic, environmental and social objectives.


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G4-52 Report the process for determining remuneration. Report whether remuneration consultants are involved in determining remuneration and whether they are independent of management. Report any other relationships which the remuneration consultants have with the organization

x

G4-53 Report how stakeholders' views are sought and taken into account regarding remuneration, including the results of votes on remuneration policies and proposals, if applicable.

V 1. Social Participation\Building Healthy and Happy Work Environment \Employee Care\Sound Communication Channel to Understand What Employees are Thinking

2. Operation and Governance\Corporate Governance \Enforcement of Information Disclosure

G4-54 Report the ratio of the annual total compensation for the organization's highest-paid individual in each countryof significant operations to the median annual total compensation for all employees (excluding the highest-paid individual) in the same country.

x

G4-55 Report the ratio of percentage increase in annual total compensation for the organization's highest-paid individual in each country of significant operations to the median percentage increase in annual total compensation for all employees (excluding the highest-paid individual) in the same country.

x

9. Ethics and Integrity

G4-56 Describe the organization's values, principles, standards and norms of behavior such as codes of conduct and codes of ethics.

V Operation and Governance \ Corporate Governance \ Establishment of Enterprise Self-Disciplinary Regulations

G4-57 Report the internal and external mechanisms for seeking advice on ethical and lawful behavior, and matters related to organizational integrity, such as helplines or advice lines.


G4-58 Report the internal and external mechanisms for reporting concerns about unethical or unlawful behavior, and matters related to organizational integrity, such as escalation through line management, whistleblowing mechanisms or hotlines.


Part II: SPECIFIC STANDARD DISCLOSURES

1.Generic Disclosures on Management Approach V Evaluation and Response to Stakeholders and Materiality Issues

2. Aspect-specific Disclosures on Management Approach

(1) Economic

G4-EC1 Direct economic value generated and distributed, including sales, operating costs, employee compensation and benefits, dividends, taxes and levies, and retained earnings.

V Operation and Governance \ Finance Disclosure (For more details, please refer to Financial Report of the company published quarterly or the annual report.)

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G4-EC2 Financial implications and other risks and opportunities for the organization's activities due to climate change.

V Operation and Governance \ Future Prospects

G4-EC3 Coverage of the organization's defined benefit plan obligations.

V Social Participation \ Building Healthy and Happy Work Environment \ Employee Care \ Fair and Reasonable Salary and Welfare

G4-EC4 Financial assistance received from government.

V Operation and Governance \ Corporate Governance \ Adaptation to Policies to Enjoy Tax Break

G4-EC5 Ratios of standard entry level wage by gender compared to local minimum wage at significant locations of operation.

V Social Participation \ Establishing a Healthy and Happy Work Environment \ Employee Care \ Fair and Reasonable Salary and Welfare

G4-EC6 Proportion of senior management hired from the local community at significant locations of operation.

V Social Participation \ Establishing a Healthy and Happy Work Environment \ Employee Care \ Fair and Reasonable Salary and Welfare

G4-EC7 Development and impact of infrastructure investments and services provided.

V Social Participation \ Professional Participation and Social Services \ Participation in Infrastructure Projects

G4-EC8 Significant indirect economic impacts, including the extent of impacts.

V Social Participation \ Professional Participation and Social Services \ Participation in Infrastructure Projects

G4-EC9 Proportion of spending on local suppliers atsignificant locations of operation.

V Social Participation \ Creating Harmonious Partnership \ Providing Clients with Outstanding Engineering Quality \Systematic Supply-Chain with Sustainable Management

(2) Environmental

G4-EN1 Materials used by weight or volume. △ Not a fabrication shop.

G4-EN2 Percentage of materials used that are recycled input materials.

△ Not a fabrication shop

G4-EN3 Energy consumption within the organization. V Environmental Protection \ Build Energy-Saving and Carbon-Reduction Office Environment

G4-EN4 Energy consumption outside of the organization.

V Environmental Protection \ Performance of Green Engineering Implementation

G4-EN5 Energy intensity x

G4-EN6 Reduction of energy consumption V 1. Environmental Protection \ Performance of Green Engineering

Implementation2. Environmental Protection \ Build

Energy-Saving and Carbon-Reduction Office Environment

3. Environmental Protection \Transform Waste into Resource

G4-EN7 Development and impact of infrastructure investments and services supported.

V 1. Environmental Protection \ Performance of Green Engineering

Implementation 2. Environmental Protection \ Build


3. Environmental Protection \ Transform Waste into Resource

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G4-EN8 Total water withdrawal by source. V Environmental Protection \ Build Energy-Saving and Carbon-Reduction Office Environment \ Effectiveness in Energy Saving, Water Conservation and Power Saving for Office Buildings

We use tap water from Taiwan Water Company and will not affect water sources.

G4-EN9 Water sources significantly affected by withdrawal of water.

△ We use tap water from Taiwan Water Company and will not affect water sources.

G4-EN10 Percentage and total volume of water recycled and reused.

V 1. Environmental Protection \ Performance of Green Engineering Implementation \Effectiveness in Building Green Project Sites

2. Environmental Protection\ Transform Waste into Resource \ Reduce Secondary Pollution, Energy Saving and Water Conservation

We use water for daily life and office purposes, and waste water is discharged to the sewerage system. Therefore, the water recycling rate is 0%.

G4-EN11 Operation sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas.

△ The construction sites where we conduct business activities are owned by the clients and have passed environmental impact evaluation.

G4-EN12 Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas.


G4-EN13 Habitats protected or restored. △ The construction sites where we conduct business activities are owned by the clients and have passed environmental impact evaluation.

G4-EN14 Total number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk.


G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1)


Implementation2. Environmental Protection \ Full Practices

of Carbon Reduction in Everyday Life

G4-EN16 Energy indirect greenhouse gas (GHG) emissions (Scope 2)


Implementation2. Environmental Protection \ Build


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G4-EN17 Other indirect greenhouse gas emissions (Scope 3)

V Environmental Protection \ Performance of Green Engineering Implementation

G4-EN18 Greenhouse gas (GHG) emissions intensity x

G4-EN19 Reduction of greenhouse gas (GHG) emissions

V 1. Environmental Protection \ Performance of Green Engineering Implementation

2. Environmental Protection \ Build Energy-Saving and Carbon-Reduction Office Environment

G4-EN20 Emissions of ozone-depleting substances (ODS).

V We do notuse Halon fireextinguishers, CFC, HCFC, and methyl bromide.

G4-EN21 NOx, SOx, and other significant air emissions. △ Not a fabrication shop.

G4-EN22 Total water discharge by quality and destination.

V We have connected all sewers to thesewerage system except for natural steam; which is the same as the water input volume.

G4-EN23 Total weight of waste by type and disposal method.

V Environmental Protection \ Transform Waste into Resource

G4-EN24 Total number and volume of significant spills. V No critical spill was reported in 2014.

G4-EN25 Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally.

△ CTCI is not a fabrication shop and does not produce hazardous waste during service process.

G4-EN26 Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the organization's discharges of water and runoff.

V We have connected all sewers to thesewerage system,and no impact was made to the survival of creatures.

G4-EN27 Extent of impact mitigation of environmental impacts of products and services.

V 1. Special Report \ CPC Talin #10 SRU Sulfur Recovery Plant EPC Project, Green SRU that Enhances Industrial Competitiveness and Reduces Pollution

2. Environmental Protection \ Performance of Green Engineering Implementation

3. Environmental Protection \ Build Energy-Saving and Carbon-Reduction Office Environment4. Environmental Protection \ Transform Waste into Resource

G4-EN28 Percentage of products sold and their packaging materials that are reclaimed by category.

△ Not a fabricationshop.

G4-EN29 Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with environmental laws and regulations.

V Social Participation \ Creating Harmonious Partnership \ Creating a Safe Work Environment

No violation ofnoncompliancewith environmentallaws and regulationswas reported in2014.

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G4-EN30 Significant environmental impacts of transporting products and other goods and materials used for the organization's operations, and transporting members of the workforce.

V 1. Environmental Protection \ Performance of Green Engineering Implementation

2. Environmental Protection \Build Energy-Saving and Carbon-Reduction Office Environment

3. Environmental Protection \ Transform Waste into Resource

G4-EN31 Total environmental protection expenditures and investments by type.

V Environmental Protection

G4-EN32 Percentage of new suppliers that were screened using environmental criteria.

○ Social Participation \ Friendly and HarmoniousPartnership \ Providing Clients with OutstandingEngineering Quality \ Sustainable Management for Systematic Supply Chain

G4-EN33 Significant actual and potential negativeenvironmental impacts in the supply chain and actions taken


G4-EN34 Number of grievances about environmental impacts filed, addressed, and resolved through formal grievance mechanisms.

V Environmental Protection \ Build Energy-Saving and Carbon-Reduction Office Environment

(3) Social: Labour Conditions and Forced Labor (16)

G4-LA1 Total number and rates of new employee hires and employee turnover by age group, gender, and region.

V Social Participation \ Establishing a Healthy and Happy Work Environment \ Employee Care \ Improve Management System and Value Human Rights

G4-LA2 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by significant locations of operation.

V Social Participation \ Establishing a Healthy and Happy Work Environment \ Employee Care

G4-LA3 Return to work and retention rates after parental leave, by gender.

V Social Participation \ Establishing a Healthy and Happy Work Environment \ Employee Care \ Following Rules, Respecting Human Rights

G4-LA4 Minimum notice periods regarding operational changes, including whether these are specified in collective agreements.

V Social Participation \ Establishing a Healthy and Happy Work Environment \ Employee Care \ Sound Communication Channel

G4-LA5 Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programs.


G4-LA6 Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities by region and by gender.


G4-LA7 Workers with high incidence or high risk of diseases related to their occupation.


G4-LA8 Health and safety topics covered in formal agreements with trade unions.


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G4-LA9 Average hours of training per year per employee by gender and by employee category.

V Social Participation \ Establishing a Healthy and Happy Work Environment \ Talent Cultivation

G4-LA10 Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings.

V Social Participation \ Establishing a Healthy and Happy Work Environment \ Talent Cultivation

G4-LA11 Percentage of employees receiving regular performance and career development reviews by gender and by employee category.


We have establishedEmployeePerformanceEvaluation Policy to evaluate employee performance every year.

G4-LA12 Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity


G4-LA13 Ratio of basic salary and remuneration of women to men by employee category, by significant locations of operation.


G4-LA14 Percentage of new suppliers that were screened using labor practices criteria.


G4-LA15 Significant actual and potential negative impacts for labor practices in the supply chain and actions taken.


G4-LA16 Number of grievances about labor practices filed, addressed, and resolved through formal grievance mechanisms.


(4) Social: Human Rights (12)

G4-HR1 Total number and percentage of significant investment agreements and contracts that include human rights clauses or that underwent human rights screening.

V There was no significant invest case in 2014.

G4-HR2 Total hours of employee training on human rights policies or procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained.

V Social Participation \ Establishing a Healthy and Happy Work Environment \ Employee Care \ \Improve Management System and Value Human Rights\

G4-HR3 Total number of incidents of discrimination and corrective actions taken.


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G4-HR4 Operations and suppliers identified in which the right to exercise freedom of association and collective bargaining may be violated or at significant risk, and measures taken to support these rights.

V 1. Social Participation \ Establishing a Healthy and Happy Work Environment \Employee Care \Improve Management System and Value Human Rights

2. Social Participation \ Friendly and Harmonious Partnership \ Providing Clients with Outstanding Engineering Quality \ Sustainable Management for Systematic Supply Chain

G4-HR5 Operations and suppliers identified as having significant risk for incidents of child labor, and measures taken to contribute to the effective abolition of child labor

V 1. Social Participation \ Establishing a Healthy and Happy Work Environment \ Employee Care \ Following Rules, Respecting Human Rights


G4-HR6 Operations and suppliers identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of all forms of forced or compulsory labor.

V 1. Social Participation \ Establishing a Healthy and Happy Work Environment \ Employee Care \ Following Rules, Respecting Human Rights


No forced orcompulsory laborhas been reportedat CTCI, andovertime work has been reasonably compensated.

G4-HR7 Percentage of security personnel trained in the organization's human rights policies or procedures that are relevant to operations.


G4-HR8 Total number of incidents of violations involving rights of indigenous peoples and actions taken.


No incident ofhuman rightsviolation has been reported.

G4-HR9 Total number and percentage of operations that have been subject to human rights reviews or impact assessments.


All the operationsof CTCI subsidiarieshome and abroadare in compliancewith LaborStandards Act.

G4-HR10 Percentage of new suppliers that were screened using human rights criteria.

○ Social Participation \ Building Harmonious Partnership \ Building Safe Work Environment \ Systematic Supply- Chain with Sustainable Management

G4-HR11 Significant actual and potential negative human rights impacts in the supply chain and actions taken.

○ Social Participation \Building Friendly and HarmoniousPartnership \ Providing Clients with OutstandingEngineering Quality \ Systematic Supply- Chain with Sustainable Management

G4-HR12 Number of grievances about human rights filed, addressed, and resolved through formal grievance mechanisms.

V Social Participation \ Establishing aBuilding Healthy and Happy Work Environment \ Employee Care \ Improve Management System and Value Human Rights

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(5) Social: Society (11)

G4-SO1 Percentage of operations with implemented local community engagement, impact assessments, and development programs.

V Social Participation \ Professional Participation and Social Services

G4-SO2 Operations with significant actual and potential negative impacts on local communities.

V None was reported in 2014.

G4-SO3 Total number and percentage of operations assessed for risks related to corruption and the significant risks identified.


G4-SO4 Communication and training on anti-corruption policies and procedures.


G4-SO5 Confirmed incidents of corruption and actions taken.


G4-SO6 Total value of political contributions by country and recipient/beneficiary.

V We have been maintaining and will remain neutral in politics and will not make contributions to political parties, politicians, and related institutions.

G4-SO7 Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes.


G4-SO8 Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with laws and regulations.


G4-SO9 Percentage of new suppliers that were screened using criteria for impacts on society.

○ Social Participation \ Building Friendly and HarmoniousPartnership \ Providing Clients with OutstandingEngineering Quality \ Systematic Supply- Chain with Sustainable Management

G4-SO10 Significant actual and potential negative impacts on society in the supply chain and actions taken.

○ Social Participation \ Building Friendly and HarmoniousPartnership \ Providing Clients with OutstandingEngineering Quality \ Systematic Supply- Chain with Sustainable Management

G4-SO11 Number of grievances about impacts on society filed, addressed, and resolved through formal grievance mechanisms.

V Social Participation \ Building Healthy and Happy Work Environment \ Employee Care \ Improve Management System and Value Human Rights

(6) Social: Product Responsibility (9)

G4-PR1 Percentage of significant product and service categories for which health and safety impacts are assessed for improvement.

V 1. Social Participation \ Building Friendly and Harmonious Partnership \ Providing Clients with Outstanding Engineering Quality

2. Social Participation \ Building Friendly and Harmonious Partnership \ Building Safe Work Environment

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G4-PR2 Total number of incidents of non-compliance with regulations and voluntary codes concerning the health and safety impacts of products and services during their life cycle, by type of outcomes.

V Social Participation \ Building Friendly and Harmonious Partnership \ Building Safe Work Environment

G4-PR3 Type of product and service information required by the organization's procedures for product and service information and labeling, and percentage of significant product and service categories subjectto such information requirements.

V 1. Social Participation \ Professional Participation and Social Services

2. Social Participation \ Building Friendly and Harmonious Partnership \ Providing Clients with Outstanding Engineering Quality \Value Customer Requirement and Implement Satisfaction Survey

G4-PR4 Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes.


G4-PR5 Results of surveys measuring customer satisfaction.

V Social Participation \ Building Friendly and Harmonious Partnership\ Providing Clients with OutstandingEngineering Quality \ Value Customer Requirement and Implement Satisfaction Survey

G4-PR6 Sale of banned or disputed products. V CSR Promotion In terms of market expansion, thecompany upholdsthe principle o fintegrity, and stays in compliancewith governmentregulations basedon internal policies (e.g., CSR related policies).

G4-PR7 Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising,promotion, and sponsorship by type of outcomes


G4-PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data.

V Social Participation \Building Friendly and Harmonious Partnership\ Providing Clients with Outstanding Engineering Quality\ Value Customer Requirement and Implement Satisfaction Survey

None was reported in 2014.

G4-PR9 Monetary value of significant fines for noncompliance with laws and regulations concerning the provision and use of products and services.

V Social Participation \ Providing Clients with Outstanding Engineering Quality

None was reported in 2014.

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Indicator Description Corresponding Section

I. Human Rights

1 Businesses should support and respect theprotection of internationally proclaimed human rights.

1. Social Participation \ Building Healthy and Happy Work Environment t \ Employee Care \ Improve Management System and Value Human Rights

2. Social Participation \Building Friendly and Harmonious Partnership \ Providing Clients with Outstanding Engineering Quality \ Systematic Supply- Chain with Sustainable Management

2 Businesses should make sure they are not complicit in human rights abuses.

1. Social Participation \ Building Healthy and Happy Work Environment \ Employee Care \ Improve Management System and Value Human Rights

2. Social Participation \ Building Friendly and Harmonious Partnership \ Providing Clients with Outstanding Engineering Quality \ Systematic Supply-Chain with Sustainable Management

II. Labour

3 Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining.

1. Social Participation \ Building Healthy and Happy Work Environment \ Employee Care \ Activate Club Activities and Bring Each Other Closer

2. Social Participation \ Building Healthy and Happy Work Environment \ Employee Care \ Sound Communication Channel to Understand What Employees are Thinking

4 Businesses should eliminate all forms of forced and compulsory labour.

Social Participation \ Building Healthy and Happy Work Environment \Employee Care \ Fair and Reasonable Salary and Welfare

5 The effective abolition of child labour.

1. Social Participation \ Building Healthy and Happy Work Environment \ Employee Caret \ Improve Management System and Value Human Rights

2. Social Participation \ Building Friendly and Harmonious Partnership \ Providing Clients with Outstanding Engineering Quality \ Systematic Supply-Chain with Sustainable Management

6 Businesses should eliminate discrimination in respect of employment and occupation.

Social Participation \ Building Healthy and Happy Work Environment \ Employee Care\ Improve Management System and Value Human Rights

III. Environment

7 Business should support a precautionary approach to environmental challenges

1. Special Report \ CPC Talin #10 SRU Sulfur Recovery Plant EPC Project, Green SRU that Enhances Industrial Competitiveness and Reduces Pollution

2. Environmental Protection \ Performance of Green Engineering Implementation 3. Environmental Protection \ Full Practices of Carbon Reduction in Everyday Life4. Environmental Protection \ Transform Waste into Resource

8 Businesses should undertake initiatives to promote greater environmental responsibility.


2. Environmental Protection \ Performance of Green Engineering Implementation3. Environmental Protection \ Build Energy-Saving and Carbon-Reduction Office

Environment 4. Environmental Protection \ Transform Waste into Resource

9 Businesses should encourage the development anddiffusion of environmentally friendly technologies.


2. Environmental Protection \ Performance of Green Engineering Implementation3. Environmental Protection \ Build Energy-Saving and Carbon-Reduction Office

Environment4. Environmental Protection \ Transform Waste into Resource

IV. Anti Corruption

10 Businesses should work against corruption in all its forms, including extortion and bribery.

Operation and Governance\Corporate Governance\Establishment of EnterpriseSelf-Disciplinary Regulations

Appendix II:Correspondence between the Ten Principles of the UN Global Compact and CTCI CSR Indicators

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Appendix III:Correspondence between the Seven Core Subjects in ISO 26000 and CTCI CSR Indicators

Indi-cator Description Contents Corresponding Section

1 Organizationalgovernance

Develop strategies, objectives, and targets that reflect its commitment to social responsibility.Demonstrate leadership commitment and accountability. Create and develop an environment for realizing social responsibility.Create a system of economic and non-economic incentives related to performance on social responsibility.Use financial, natural and human resources efficiently.Promote a fair opportunity for underrepresented groups (including women and racial and ethnic groups).Balance the needs of the organization and its stakeholders.Establish two-way communication processes with its stakeholders.Encourage effective participation of all levels of employees in the organization's social responsibility activities.Balance the level of authority, responsibility and capacity of people who make decisions on behalf of the organization.Keep track of the implementation of decisions.Periodically review and evaluate the governance processes of the organization.

1. Message from the Top Management2. Operation and Governance \ Corporate

Governance3. CSR Promotion4. Evaluation and Response to Stakeholders

and Materiality Issues

2 Human rights Comply with law and avoid audits on risk arising from issues relating to human rights.Human rights risk situationsAvoidance of complicityResolving grievancesDiscrimination and vulnerable groupsCivil and political rightsEconomic, social and cultural rightsFundamental principles and rights at work


2. Social Participation \ Building Friendly and Harmonious Partnership \ Providing Clients with Outstanding Engineering Quality \ Systematic Supply- Chain with Sustainable Management

3 Labour practices

Employment and employment relationshipsConditions of work and social protectionSocial dialogueHealth and safety at workHuman development and training in the workplace

1. Social Participation \ Building Healthy and Happy Work Environment \ Employee Care

2. Social Participation \ Building Healthy and Happy Work Environment \Fosterting Talent

3. Social Participation \ Building Friendly and Harmonious Partnership \ Building Safe Work Environment

4 The environment

Prevention of pollutionSustainable resource useClimate change mitigation and adaptationProtection of the environment, biodiversity and restoration of natural habitats


2. Environmental Protection \ Performance of Green Engineering Implementation

3. Environmental Protection\Build Energy-Saving and Carbon-Reduction Office Environment

4. Environmental Protection\Transform Waste into Resource

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Indi-cator Description Contents Corresponding Section

5 Fair operatingpractices

Anti-corruptionResponsible political involvementFair competitionPromoting social responsibility in the value chainRespect for property rights

1. Operation and Governance\Corporate Governance\Establishment of Enterprise Self-Disciplinary Regulations


3. Social Participation \ Building Friendly and Harmonious Partnership \ Providing Clients with Outstanding Engineering Quality \ Systematic Supply- Chain with Sustainable Management

6 Consumer issues

Fair marketing, factual and unbiased information and fair contractual practicesProtecting consumers' health and safetySustainable consumptionConsumer service, support, and complaint and dispute resolutionConsumer data protection and privacyAccess to essential servicesEducation and awareness

Social Participation \Building Friendly and Harmonious Partnership \ Providing Clients with Outstanding Engineering Quality \Value Customer Requirement and Implement Satisfaction Survey

7 Communityinvolvement anddevelopment

Community involvementEducation and cultureEmployment creation and skills developmentTechnology development and accessWealth and income creationHealthSocial investment

Social Participation \ Professional Participation and Social Services

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Legal Terms Determination Items Corresponding Sections

Does an enterprise prepare the corporate social responsibility report according to GRI, whether in writing or by posting on the specific are in the corporate website?

Appendix I Correspondencebetween this CSR Report and GRI G4.0 Guideline

In order to assist companies listed on the Taiwan Stock Exchange Corporation ("TWSE") and GreTai Securities Market ("GTSM") (collectively referred to as "TWSE/GTSM-listed companies") in fulfilling their corporate social responsibility initiatives and to promote economic, social and environmental balance and sustainable development, the TWSE and GTSM hereby jointly adopt the Principles to be followed by TWSE/GTSM-listed companies. TWSE/GTSM-listed companies are advised to promulgate their own corporate social responsibility principles in accordance with the Principles to manage their environmental and social risks and impact.

1.1 Have TWSE/GTSM-listed companies established their own CSR best practice principles in accordance with the Corporate Social Responsibility Best Practice Principles for TWSE/GTSM-Listed Companies to facilitate the management of environmental and societal impact and risk?

Appendix IV DeterminationItems of the Corporate SocialResponsibility Best Practice Principles for TWSE/GTSM Listed Companies

The Principles applies to TWSE/GTSM-listed companies, including the entire operations of each such company and its business group.The Principles encourages TWSE/GTSM-listed companies to actively fulfill their corporate social responsibility in the course of their business operations so as to achieve a balance among environmental concerns, social responsibility, and corporate governance to follow the international trend and to contribute to the economic development of the country, to improve the quality of life of employees, the community and society by acting as responsible corporate citizens, and to enhance competitive edges built on corporate social responsibility.

2.1 Does the scope of corporate social responsibility cover the overall operational activities of the enterprise and its group?

Operation and Governance \Corporate Overview

In fulfilling corporate social responsibility initiatives, TWSE/GTSM-listed companies shall, in its corporate management and operations, give due consideration to the social mores and the rights and interests of the interested parties and, while pursuing sustainable operations and profits, also give due consideration to the environment, society and corporate governance.

3.1 In fulfilling corporate social responsibility initiatives, did TWSE/GTSM-listed companies give due consideration to the social mores and the rights of stakeholders?


3.2 While pursuing sustainable operations and profits, did TWSE/GTSM-listed companies also give due consideration to the environment, society and corporate governance?

CSR Promotion

To implement corporate social responsibility initiatives, TWSE/GTSM-listed companies are advised to follow the principles below:1. Exercise corporate governance.2. Foster a sustainable environment.3. Preserve public welfare.4. Enhance disclosure of corporate social responsibility information.

4.1 In fulfilling corporate social responsibility initiatives, did TWSE/GTSM-listed companies exercise corporate governance?


4.2 In fulfilling corporate social responsibility initiatives, did TWSE/GTSM-listed companies foster a sustainable environmental?


4.3 In fulfilling corporate social responsibility initiatives, did TWSE/GTSM-listed companies preserve public welfare?


Appendix IV:Determination Items of the Corporate Social Responsibility Best Practice Principles for TWSE/GTSM-Listed Companies

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4.4 In fulfilling corporate social responsibility initiatives, did TWSE/GTSM-listed companies enhance the disclosure of social responsibility information?

Operation and Governance \Corporate Governance\ Enforcement of InformationDisclosure

TWSE/GTSM-listed companies shall comply with relevant laws, regulations, their articles of incorporation, agreements entered into with the TWSE or GTSM, and other relevant rules. Further, they are advised to take into consideration the development of domestic and international corporate social responsibility principles and the operation of individual companies and of their respective business groups as a whole in establishing their policies, systems or relevant management protocols for corporate social responsibility programs, which shall be approved by the board of directors.

5.1 Did TWSE/GTSM-listed companies establish the corporate social responsibility policy, system or relevant management systems according to the relevant laws, regulations, their articles of incorporation, agreements entered into with the TWSE or GTSM, and other relevant rules; and take into account the development of domestic and international corporate social responsibility principles and the operation of individual companies and of their respective business groups as a whole in establishing their policies, systems or relevant management protocols for corporate social responsibility programs?

Operation and Governance\ Corporate Governance \Establishment of EnterpriseSelf-Disciplinary Regulations

5.2 Were these corporate social responsibility policies, systems, or relevant management systems approved by the board of directors?


TWSE/GTSM-listed companies are advised to build effective governing structures and related ethical standards by following the code of practice on corporate governance, code of business integrity, and reference examples of ethical code of conduct, in order for sound corporate governance.

6.1 Whether the company has built effective governing structures and related ethical standards, in order for sound corporate governance.

Operation and Governance\ Corporate Governance

The board of directors of a TWSE/GTSM-listed company shall exercise the due care of good administrators to urge the company to perform its corporate social responsibility initiatives, examine the results of the implementation thereof from time to time and continually make adjustments so as to ensure the thorough implementation of its corporate social responsibility policies.The board of directors of a TWSE/GTSM-listed company are advised to uphold corporate social responsibility by:

7.1 Did the board of directors of TWSE/GTSM-listed companies make corporate social responsibility the guiding principle of the company's operations and development?

CSR Promotion

7.2 Did the board of directors of TWSE/GTSM-listed companies identify the company's corporate social responsibility mission (or vision, values) and declaring its corporate social responsibility policy?

CSR Promotion

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1. Making corporate social responsibility the guiding principle of the company's operations and development;

2. Identifying the company's corporate social responsibility mission (or vision, values) and declaring its corporate social responsibility policy;

3. Enhancing the disclosure of corporate social responsibility information.

In terms of the economic, environmental and social issue generated by operating activities, the board of directors of a TWSE/GTSM-listed company shall authorize its top-level management to handle and report to the board. The operational processes and relevant personnel responsible should be specific and clear.

7.3 Did the board of directors of TWSE/GTSM-listed companies enhance the disclosure of corporate social responsibility information?

CSR Promotion

For the purpose of managing corporate social responsibility initiatives, TWSE/GTSM-listed companies are advised to establish an exclusively (or concurrently) dedicated unit to be in charge of proposing and enforcing the corporate social responsibility policies or systems of the company and to report on the same to the board of directors on a periodic basis.TWSE/GTSM-listed companies are advised to develop reasonable compensation policies, to ensure that the compensation plan is in compliance with organizational strategic objectives and interests of stakeholders. Employee performance appraisal system should be combined with corporate social responsibility policies and a clear, effective reward and punishment system should be established.

8.1 Did TWSE/GTSM-listed companies establish an exclusively (or concurrently) dedicated unit to be in charge of proposing and enforcing the corporate social responsibility policies or systems of the company for the purpose of managing corporate social responsibility initiatives?

CSR Promotion

8.2 Did the exclusively (or concurrently) dedicated unit to be in charge of proposing and enforcing the corporate social responsibility policies or systems of the company for the purpose of managing corporate social responsibility initiatives report on the same to the board of directors on a periodic basis?

CSR Promotion

TWSE/GTSM-listed companies shall respect the rights and interests of any interested parties, identify and understand the reasonable expectations and demands of such parties through proper communication with them and allowing their participation, and shall adequately respond to the important corporate social responsibility issues which such parties are concerned about.

9.1 Did TWSE/GTSM-listed companies respect the rights and interests of stakeholders and identify the company's stakeholders?


9.2 Did TWSE/GTSM-listed companies understand the reasonable expectations and demands of stakeholders through proper communication with them?


9.3 Did TWSE/GTSM-listed companies adequately respond to the important corporate social responsibility issues which stakeholders are concerned about?


Note: As it would take too much space if the complete principles were to be listed, only parts of these items are presented here.

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Green ManagementGreen ManagementMastering in

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