Material Issues
Material Issues
CT assesses the significance of the impacts of material topics on the economy, the environment, and people (human rights) through various communication and engagement channels and in accordance with the GRI Universal Standards 2021; these assessments provide the basis for sustainability planning and form the foundation for the disclosures in this report.
Identification and Classification of Material Issues
To enhance management policies and strengthen information disclosure, and taking into account regulatory trends and public attention to various sustainability issues, the CT ESG Verification Team resolved to continue the 15 sustainability issues from 2023. On December 2, 2024, it conducted an electronic survey of stakeholders on their level of concern regarding these issues. The questionnaire was posted on the Company website for investors and other stakeholders to fill out. To ensure that the information disclosed in the report genuinely addresses stakeholder expectations regarding the issues of concern, a total of 31 stakeholder questionnaires had been collected by December 20, 2024.
Through the materiality analysis assessment process, the material topics for 2024 were identified. It was found that the issues valued by stakeholders are largely the same as the material topics in 2023, namely: operational performance, occupational environmental safety and health, product quality, climate change response, and personnel structure.
The score for environmental management declined, while the score for climate change increased, showing that stakeholders are paying greater attention to the Company’s climate‑change response measures and to GHG emissions. Compared with present actions, stakeholders care more about plans for the future. In addition, the score for operational performance also rose, which can be linked to the decline in the Company’s revenue in 2024 compared with 2023, thereby increasing the level of stakeholder concern.
Value Chain and Impact Assessment of Material Issues
Through internal discussions held by the CT ESG Verification Team, the affected parties and boundaries inside and outside the organization were defined and aligned with GRI topics; these definitions were confirmed by the Sustainable Development Committee and senior executives, and the direct and indirect impacts under the governance, environmental, and people (human rights) dimensions were identified for each material topic to respond effectively to stakeholders.
To help stakeholders better understand how each sustainability issue affects the Company’s overall value chain, the environment, and society, CT identified five major sustainability issues and explained the response strategies and the positive and negative impacts of each material issue.
Dimension | Sustainability Issues | Corresponding GRI Standards | Upstream (Supplier) | Within the Company (Employees) | Downstream (Customers) | Impact (positive/negative) | Corresponding Chapter |
Governance | Governance Organization | GRI 2-9 Governance structure and composition | ○ | ● | ○ | Sound corporate operations can indirectly stabilize society, and CT is steadily strengthening the functions of its Board of Directors, fulfilling its management responsibilities, actively enhancing its corporate governance evaluation score, and improving its corporate governance. Without a clear governance system in place, effectiveness will be limited, heightening the Company’s operational risks and discouraging investors from investing. | 1.1 |
Operational Performance
|
GRI 201 Economic Performance | ○ | ● | As orders for offshore wind power companies continue to grow, revenue is also growing steadily, strengthening the Company’s foundation. If operational performance is unsatisfactory, it may be suspected that inadequate management is the cause, thereby undermining investor confidence. Short‑term goal: Restore employee and investor confidence through effective communication channels and operational performance. | 1.2 | ||
Ethical Management
| GRI 2-27 Compliance with laws and regulations GRI 205 Anti-corruption GRI 206 Anti-competitive behavior | ● | ○ | Compliance with regulations is the baseline for enterprises, and through the effective implementation of regulations, the Company continues to grow while maintaining a good reputation. If any act of corruption occurs, it will severely damage the Company’s image, breed distrust among customers, and increase operational risks. | 1.3 | ||
Risk Management | GRI 418 Customer privacy | ○ | ● | ○ | Effective anticipation and control of risks can minimize losses and better capture the opportunities hidden within them. If risks are not reasonably and effectively controlled, the Company’s reputation will be damaged, and investors and customers will lose trust. | 1.3 | |
Product Quality |
Custom Topic
| ○ | ● | ● | By testing the Company’s products against international standards, foreign manufacturers can cooperate with the Company with confidence, and Taiwan’s technology will also gain recognition. If the quality of steel structure welding and offshore wind substructure equipment is abnormal, the Company’s reputation will suffer, foreign clients will lose confidence in Taiwanese suppliers, and natural calamities such as earthquakes could indirectly cause social disasters. | 2.1 | |
Customer Relationship Management | Custom Topic | ● | Value the customers that cooperate with the Company, and foster their trust through excellent and stable product quality. Losing customer confidence will severely impact operating performance and also damage the Company’s reputation among enterprises. | 2.2 | |||
Supplier Management | GRI 204 Procurement practices GRI 308 Supplier environmental assessment GRI 414 Supplier social assessment | ● | ○ | By selecting and cooperating with outstanding suppliers through various processes, the Company can maintain quality, The Company also expects suppliers to comply with environmental standards, fulfill social responsibility, promote environmental sustainability, and uphold human rights. If there is no sound supplier audit mechanism, low‑price competition and cost pressures may likewise prompt suppliers to cut costs by lowering wages, imposing excessive overtime, providing improper working conditions, and exploiting labor. Mid-term goal: Convince suppliers to provide more detailed social or environmental information and encourage suppliers to obtain certification to relevant international standards. | 2.3 | ||
Environment | Environmental Management
| GRI 306 Waste GRI 303 Water and effluents
| ○ | As the Company’s business grows, it should also take the environment into account, not only by controlling water consumption but also by seeking resource recycling channels so that waste can be reused and the environmental burden reduced. If the Company arbitrarily dumps waste or discharges wastewater, it will damage the surrounding environment, and in severe cases the damage may be irreparable, thereby affecting the physical and mental health of local residents. | 3.2 | ||
Energy Management | GRI 302 Energy | ● | Monitor energy consumption to avoid waste and adhere to the 1% energy-saving policy target, thereby reducing the environmental burden. If resource use is not properly controlled, GHG emissions during production will increase sharply, thereby worsening global warming. Mid‑term goal: Achieve a 1% annual electricity savings rate; for details, please refer to 3.1 Energy Management. | 3.1 | |||
Climate Change Mitigation and Adaptation
|
GRI 305 Emissions | ○ | ● | The environment has changed drastically because of climate change, and enterprises should respond accordingly; with respect to GHGs, CT fully assists the government in conducting inventories. Failure to actively formulate response plans for climate-change issues will not only draw heightened government attention but also affect investors’ perception of the Company. Long‑term goal: Implement a GHG emissions reduction plan. For details, please refer to 3.4 Climate Change Mitigation and Adaptation. |
3.3 | ||
Social | Employee Structure
|
GRI 401 Employment GRI 405 Diversity and equal opportunity
| ○ | ● | CT offers highly competitive salaries and comprehensive benefits and actively recruits and develops talent of diverse backgrounds, genders, races, and cultures to become part of the CT team. If discrimination incidents occur, they will not only damage the Company’s image but also affect the public’s willingness to join the Company. | 4.1 | |
Human Rights | GRI 406 Non-discrimination GRI 407 Freedom of association and collective bargaining GRI 408 Child labor GRI 409 Forced or compulsory labor | ● | The ESG wave has swept over Taiwanese enterprises, and CT is among them. The Company treats employees regardless of gender, age, or educational background and continues to progress toward a workplace that fosters happiness and a positive work environment. If discrimination incidents occur, they will not only affect business operations but also diminish the Company’s image in the eyes of the public. |
4.2 | |||
Competency Development | GRI 404 Training and education | ● | By cultivating and enhancing employee competencies, the Company boosts its competitiveness and develops sustainable human resources, thereby exerting a positive impact on society, the economy, and the environment; the Company fully supports both training for new employees and on‑the‑job education. If the Company does not actively develop employees, they will lose confidence and leave, forcing the Company to spend more money and face manpower shortages, while also impacting the broader employment environment. | 4.3 | |||
Occupational Environmental Safety and Health |
GRI 403 Occupational health and safety | ● | ● | Employees are the Company’s greatest asset, and protecting employees is CT’s foremost concern. Regarding labor safety issues, the Company continuously improves through its occupational safety and health management system, hazard identification, risk assessment, and occupational health services, firmly believing that only in a sound environment can employee health and safety be ensured. If the workplace is unsafe, employees may suffer injury or illness from health and safety hazards requiring treatment and possible sick leave, or the impact may extend to the surrounding environment and endanger the personal safety of local residents. |
4.4 | ||
Social Engagement
| Custom Topic | ○ | Fulfill corporate social responsibility by upholding the principle of “taking from society and giving back to society”. Through local contribution, ecological conservation, volunteer participation, talent cultivation, and other endeavors, the Company continuously demonstrates practical actions and care for society, establishing a virtuous cycle. | 5.1 5.2 5.3 | |||
【●】 Direct impact: Indicates that the sustainability issue has a direct impact on the topic 【○】 Indirect impact: Indicates that the sustainability issue has an indirect impact on that topic or is related to the t through business relationships Short-term goals: 1 to 3 years Mid-term goals: 4 to 7 years Long-term goals: Over 10 years | |||||||
2024 Material Topics
2024 Material Topics
2024 Material Topics
2024 Material Topics
2024 Material Topics
