Stakeholder Engagement

TCC values the opinions of its stakeholders, actively communicating and engaging with regard to material sustainability issues, which are incorporated in the corporate sustainable development blueprint. In line with the nature of the industry and with reference to the GRI Standards, SASB Standards, and Dow Jones Sustainability Index (DJSI) as well as AA1000 Stakeholder Engagement Standard, it employs the five principles, i.e. Responsibility, Influence, Tension, Diverse Perspectives, and Dependency in the identification and ordering of stakeholder significance.

The mechanism of communication and reporting will be conducted at least once each year. The result of the latest stakeholder engagement and the discussion topics are as below:

Assessment Process for Stakeholders and Material Topics

Step and Action

Key Performance

Identify stakeholders

Department heads complete a survey to rank and identify key stakeholders.

categories of stakeholders identified

Zoom in on the sustainability issues of TCC

List sustainability issues based on global trends, ratings.

25 sustainability issues
cover corporate governance, economy, environment, and people and human rights

Assess impacts of sustainability issues on the economy, environment, people and human rights

Hold a workshop on material topics, invite VP-level supervisors to identify impacts, and ask each unit to send survey in Chinese and English to 10 internal/external stakeholders to capture the levels of impact.

337 questionnaires collected

Assess impacts of sustainability issues on operation

The Corporate Sustainable Development Committee and VP-level supervisors assess sustainability impacts on operation and rate the significance based on the "level of impact" and"likelihood" of respective impacts.

8 VP-level and above supervisors discussed at management meeting

Double materiality assessment & analysis

Summarize internal/external survey results, map double materiality matrix, link issues and TCC sustainability strategies, and decide material topics for 2024.

12 material topics identified by the Corporate Sustainable Development Committee

Determine material topics

Submit the 12 material topics identified to the Board of Directors to ensure these material topics are aligned with the business risks and strategies of TCC.

Submitted to the Board of Directors compliance of in sustainability and integrity

Identification of Sustainability Issues

TCC conducts a sustainability issue assessment every two years. This year, the Company adopted the Double Materiality analysis principle in accordance with the GRI Universal Standards 2021. In compiling the sustainability issue list, TCC comprehensively considered global sustainability development trends, international sustainability rating frameworks (such as MSCI, S&P CSA, and CDP), sustainability disclosure standards (such as GRI Standards, and SASB Standards), industry characteristics, and best practices of industry peers. Stakeholders' opinions on each issue were surveyed, evaluating both the impact on corporate value and impact on the economy, environment, people, and human rights. A thorough evaluation of positive and negative impacts was conducted from both internal and external organizational perspectives. Material sustainability topics for the year were then identified based on the level of impact and likelihood of occurrence.

Through the double materiality analysis, eight material sustainability topics were identified, including “climate action and net-zero emissions”, “resource co-processing”, “green energy and energy storage”, “R&D innovation”, “low-carbon products and services”, “biodiversity”, “legal compliance” and “workplace health and safety”. Meanwhile, considering that “pollution control and management” and “water resources management” have a higher negative impact on the economy, environment, people and human rights, and are the focuses in the industry disclosure of various sustainability disclosure standards, both are also included in the material sustainability topics this year. In addition, in the human-centered, TCC puts employee inclusion and common good into practice. After discussion at the management meeting, “talent cultivation and development” and “local inclusion” are included in the material topics this year as well.

TCC has maintained the 12 material sustainability topics identified in the 2023 analysis. The results of the materiality assessment were approved by the Board of Directors. Also, the development and achievement on these material sustainability topics are linked to the executive remuneration. The materiality analysis process and results have been independently assured by Deloie Taiwan, a third-party assurance provider, in accordance with ISAE 3000 (Revised), and verified by BSI Taiwan in accordance with the GRI Standards and AA1000AS v3 Type 1 Moderate Assurance Level.

TCC Double Materiality Matrix

Stakeholder Identification Results

Referring to the AA1000 Stakeholder Engagement Standard (SES), TCC identifies and prioritizes the key stakeholders based on the five principles, i.e., Responsibility,
Influence, Tension, Diverse Perspectives, and Dependency.

Government & Competent Authorities

Shareholders and Investors

Clients

Employees

Suppliers/Contractors

Media

Local Communities

Industry Associations/Industrial & Academic Organizations

Sustainability Associations

Environmental Groups/NGOs

Stakeholder engagement programs

TCC is convinced that only with smooth and effective engagement with its stakeholders can TCC capture the pulses in the markets, economy, society, and environment, and ultimately put TCC's sustainability missions of "Nature First" and "Benefit to Society" into action. As a result, TCC implements stakeholder engagement programs that are applied to all local operations and stakeholder categories. These programs include conducting local stakeholder or community impact assessments to understand the potential effects of operations on stakeholders. Concurrently, TCC systematically designed sustainability issue survey questionnaires, with which it collects and analyzes feedback of stakeholders; meanwhile, it evaluates the impacts and risk levels of sustainability issues on corporate operation, identifying material issues and prioritizing responses and reactions to meet stakeholders' expectations toward TCC.

Upholding the spirit of open transparency, TCC not only establishes clear communication channels but also discloses information through diverse formats, ensuring effective and quality communication results with its stakeholders. TCC proactively meets with local stakeholders to identify emerging concerns. This includes visiting nearby villages and schools, promoting sustainable ideas via featured programs, and enhancing residents' understanding of TCC while building their participation capabilities to ensure effective communication with TCC.

In addition, TCC values stakeholder expectations and regularly reviews the surveys of perceptions for local stakeholders on engagement strategy. TCC promptly responds to and continuously tracks grievances raised by stakeholders, ensuring proper handling and adjustments to the engagement program to maintain interactions. Important issues identified during the engagement process are also incorporated into the corporate operation and sustainable development blueprint, so that TCC may better promote sustainable operation, fulfilling its corporate social responsibilities. Please refer to TCC Stakeholder Engagement Policy for more information.

Government & Competent Authorities

Shareholders & Investors

Clients

Employees

Suppliers/Contractors

Media

Local Communities

Industry Associations/Industrial & Academic Organizations

Sustainability Associations

Environmental Groups/NGOs

Means of Engagement	Frequency of Engagement	Engagement of Performances	Engagement Experiences and Feedback
Participation in training courses and promotional seminars	Multiple times a year	Participated in the first phase of the IFRS Sustainability Disclosure Standards Introduction Plan for Enterprises of the Taiwan Stock Exchange, and the 2024 Annual Sustainability Information Management Internal Control System Promotion Meeting of the Taiwan Stock Exchange Complete 2024 annual report disclosure and information reporting	Understanding the implementation of new policies, to ensure the compliance of the Company with legal and regulatory requirements, and to timely update regulations and amend or add new business operations, in order to enable the Company to formulate strategies and reduce risks
Conference exchanges and interviews	Multiple times a year	Through meetings, we have exchanged views and researched industry issues with the Ministry of Environment, the Bureau of Standards, Metrology and Inspection, and related industry associations, such as the cement industry's assessment of the acceptance standards and existing obstacles for construction waste aggregates, and the impact of increased chloride ion content in Portland cement on the water-soluble chloride ion content of fresh concrete	Tripartite exchanges and research between industry, government, and research to grasp industry and government policy trends
	Multiple times a year	CIMPOR participated in nine Portuguese government hearings, discussing the Portuguese cement industry's 2050 decarbonization roadmap and exploring industry challenges, including the promotion of low-carbon cement, green procurement, CCUS infrastructure development, and regulatory support needs	Understand the Portuguese cement industry's 2050 carbon reduction roadmap and understand the industry's intentions and potential challenges regarding low-carbon policies
	Semiannually	Central Bank researchers and specialists hold two regular meetings each year to communicate with TCC business managers to understand the cement industry's overview, operational performance, and future prospects	Through relevant talks, understand the latest status of the company and industry with the government or competent authorities
Plant Visitings	Multiple times a year	Invited the Ministry of Economic Affairs, local environmental protection bureaus and other units to visit TCC's Hoping Plant, Hoping Port and other bases to introduce TCC's environmentally friendly practices such as the use of recycled resources and the port area ecological conservation plan A total of more than 10 visits were held	Invite competent authorities to visit the site to introduce resource recycling and ecological conservation measures, strengthen policy communication and positive feedback
Proactive external communication of TCC actions via disclosures on corporate website and the Market Observation Post System	Biweekly	Ranked in the top 5% of corporate governance assessments for three consecutive years, the only company in the building materials industry to be ranked Continuous communication with the government and relevant authorities	Friendly relationships and bidirectional communication with the government and competent authorities maintained
Bilateral communication with stakeholders via official document and correspondence	Biweekly	Continuous communication with the government and relevant authorities

Means of Engagement	Frequency of Engagement	Engagement of Performances	Engagement Experiences and Feedback
TCC Sustainability Report and Highlights Presentation	Annually	A total of 44 financial institutions, including banks in Taiwan, were invited to explain the eight key highlights of TCC's 2024 sustainability disclosure, including the first annual report in Taiwan to include a dedicated chapter on IFRS S1/S2, and the strategic layout after the transformation into the group holding company, TCC Group Holdings.	Improve transparency in sustainability information disclosure and promote sharing and collaboration, strengthening investment confidence and sustainability impact
Hosting or attending investor conferences	Semiannually	1 investor conference organzied by TCC, with more than 60 legal entities participating	IR contacts designated by important subsidiaries or key departments to establish a sound investor communication process
	Semiannually	1 investor conference attended at invitation, with more than 20 legal entities participating investment confidence and sustainability impact
	Annually	OYAK and CIMPOR each held an investor relations meeting to explain the company's future vision, sustainability strategy and carbon reduction path, market opportunities and investment outlook.	Facilitate communication with shareholders and investors, enhance decision-making transparency and consensus, and promote the achievement of sustainability and carbon reduction goals
Communication with institutional investors via email, phone call, or meeting	Irregularly	Conducted ESG consultation and negotiation meetings with financial/investment institutions, including major sovereign funds in Northern Europe and Southeast Asia and Article 8 Fund, Europe's largest asset management company.	Designate IR windows for important subsidiaries or key departments to respond to external inquiries immediately

Means of Engagement	Frequency of Engagement	Engagement of Performances	Engagement Experiences and Feedback
Client Satisfaction Survey	Annually	Weighted average client satisfaction: 93.5%	Producing the "Survey Results Analysis Report" based on the annual client satisfaction survey, which is presented and analyzed with the heads of plants and stations during the monthly logistics meeting of the Sales Department meeting to demand correction, followed by feedback of results to clients
Low-carbon cement business promotion	Monthly	Taiwan RMC Portland Limestone Cement (IL) concrete and optimized low-carbon mix promotion sessions: Taipei RMC Plant: 426 sessions Taichung RMC Plant: 73 sessions Kaohsiung RMC Plant: 80 sessions E.G.C. Cement Corp: 3 sessions	Review of client feedback on the monthly promotional activities during the monthly operations meeting of the Sales Department, along with study and consultation with the R&D units, for an unceasing improvement of product quality
Meetings with clients	Multiple times a year	CIMPOR held two annual customer meetings to build trust with TOP 30 customer representatives, promote long-term cooperation and enhance customer loyalty, with a total of 42 participants; OYAK held the "Cementum" low-carbon and environmentally friendly product launch event, with a total of 95 customers participating.	Keep abreast of customer needs and market changes, improve product and service quality, and enhance customer loyalty and willingness to cooperate

Means of Engagement

Frequency of Engagement

Engagement of Performances

Engagement Experiences and Feedback

Client Satisfaction Survey

Annually

Weighted average client satisfaction: 93.5%

Producing the "Survey Results Analysis Report" based on the annual client satisfaction survey, which is presented and analyzed with the heads of plants and stations during the monthly logistics meeting of the Sales Department meeting to demand correction, followed by feedback of results to clients

Low-carbon cement business promotion

Monthly

Taiwan RMC Portland Limestone Cement (IL) concrete and optimized low-carbon mix promotion sessions:

Taipei RMC Plant: 426 sessions
Taichung RMC Plant: 73 sessions
Kaohsiung RMC Plant: 80 sessions
E.G.C. Cement Corp: 3 sessions

Review of client feedback on the monthly promotional activities during the monthly operations meeting of the Sales Department, along with study and consultation with the R&D units, for an unceasing improvement of product quality

Meetings with clients

Multiple times a year

CIMPOR held two annual customer meetings to build trust with TOP 30 customer representatives, promote long-term cooperation and enhance customer loyalty, with a total of 42 participants; OYAK held the "Cementum" low-carbon and environmentally friendly product launch event, with a total of 95 customers participating.

Keep abreast of customer needs and market changes, improve product and service quality, and enhance customer loyalty and willingness to cooperate

Means of Engagement	Frequency of Engagement	Engagement of Performances	Engagement Experiences and Feedback
Performance appraisal and interviews	Annually/Quarterly	Timely communication between employees and supervisors on performance targets via the performance appraisal mechanisms of the annual Management by Objectives and quarterly agile conversations	Consensus on employee's work goals, personal career development, and performance evaluations reached
Cultural and Generational communication	Irregularly	Organize various multicultural activities, such as the Chairman's speech on "TCC's European Journey," the TCC 70th Anniversary Exhibition and Activities, and a special screening of the film "Dante." The CIMPOR Christmas Dinner reviewed the important milestones of 2024 and promote exchanges between departments	In line with TCC's global presence, we broaden employees' international perspectives, promote internal multicultural integration, and create a space for cross-generational dialogue to build employee cohesion.
Employee engagement survey & human rights due diligence	Annually	Employee engagement survey & human rights due diligence completed Released the first "TCC 2024 Human Rights and Environmental Due Diligence Report"	Employee feedback captured via diverse surveys and communication channels to empower the ongoing improvement of the Company
Labor-management meeting/union meeting/employee welfare meeting	Quarterly	Multiple labor-management meetings/union meetings/employee welfare meetings called In response to the power plant's transformation, Hoping Power Company held a symposium to discuss its transformation plan, ocean thermal power generation, and its vision for related industries.
Town Hall Meeting	Quarterly	4 Town Hall Meetings convened
TCC Monthly Meeting	Monthly	12 monthly meetings held
Employee suggestion mailbox , Care Platform, and grievance channel for cases involving sexual harassment and gender equality violations	Irregularly	Unhindered communication channels maintained and bidirectional communication with employees established

Means of Engagement	Frequency of Engagement	Engagement of Performances	Engagement Experiences and Feedback
Organizing education, training, or workshops	Irregularly	Various sustainability activities were held: Supplier Carbon Inventory Camp, with 71 participants Sustainability Governance Workshop, with 119 participants Supplier Conference, with 107 participants in person and 198 participants online	Suppliers assisted on carbon emissions calculations as well as in improving the data quality in carbon data collection and carbon reduction plan formulation to jointly mitigate climate change
Supplier suggestion mailbox available on the TCC corporate website	Irregularly	Timely bidirectional communication engaged	Supplier suggestions acquired via diverse channels to continuously strengthen the partnership
Communication with suppliers/contractors via email and phone call	Irregularly

Means of Engagement

Frequency of Engagement

Engagement of Performances

Engagement Experiences and Feedback

Organizing education, training, or workshops

Irregularly

Various sustainability activities were held:

Supplier Carbon Inventory Camp, with 71 participants
Sustainability Governance Workshop, with 119 participants
Supplier Conference, with 107 participants in person and 198 participants online

Suppliers assisted on carbon emissions calculations as well as in improving the data quality in carbon data collection and carbon reduction plan formulation to jointly mitigate climate change

Supplier suggestion mailbox available on the TCC corporate website

Irregularly

Timely bidirectional communication engaged

Supplier suggestions acquired via diverse channels to continuously strengthen the partnership

Communication with suppliers/contractors via email and phone call

Irregularly

Means of Engagement	Frequency of Engagement	Engagement of Performances	Engagement Experiences and Feedback
Media delegation tour and press release	Irregularly	Several tours organized; 42 press releases published	Showcase of various sustainable actions of TCC to the broader society via media and social media platforms to receive feedback from various stakeholders
Phone call & email	Irregularly	Timely bidirectional communication engaged
Corporate website, Facebook Page/WeChat official account/Instagram	Irregularly	The sustainable actions of TCC communicated externally

Means of Engagement	Frequency of Engagement	Engagement of Performances	Engagement Experiences and Feedback
Social Return on Investment (SROI) in force	Irregularly	The Social Return on Investment (SROI) introduced and accredited by Social Value International in the U.K. in December 2021, verifying that for every NT$1 invested in the projects of TCC DAKA, social value worth of NT$3.54 was generated	Direct interaction with local communities, allowing community residents to better understand TCC, gainng insights into local needs for TCC to provide relevant resources, and establishing quality interactions between TCC and communities
Visits to local communities and schools	Irregularly	Result Presentation of 4 Cement Academies organized
Promotion of sustainable ideas via featured program	Irregularly	TCC Taiwan's "Carbon Reduction Parent-Child Bankbook" implemented in partnership with Heping Elementary School, Yilan Dong Ao Elementary School, Hoping Port, Power Plant, and Plant, as well as the Heping Tribe Mothers' Classroom. OYAK's "Renkli Yaka (Colorful Collars) Project" renovated school facilities, provided classroom supplies and stationery, and organized activities such as children's dance, games, and face painting for children in rural elementary schools. CIMPOR celebrated the 130th anniversary of its Alhandra factory with an open house, guided tours to the community and schools, and a student painting competition.

Means of Engagement	Frequency of Engagement	Engagement of Performances	Engagement Experiences and Feedback
Participation in the Annual Meeting of the Asian Cement Producers Amity Club (ACPAC)	Annually	The meeting attended by the Corporate Sales Department for information exchange with cement manufacturers across countries	The cement data across Asian countries captured; the interaction and understanding between TCC and the peers in the neighboring countries strengthened
Participation in GCCA's seminars and various sustainability meetings	Biweekly	Over 19 meetings attended	Information retrieved via exchanges with international cement companies and expert experiences sharing for the reference and use by various departments
Attendance in the association board of directors' engagement/sales/technical committee to share the industrial practices of TCC	Irregularly	Participated in several conferences to discuss practical issues in the cement industry	Meetings participated together the Works Department and the Low-carbon R&D Center for discussion on the framework and progress of low-carbon cement procurement promotion Participation in meetings to share corporate policies and practices of TCC and further engage in technical exchanges with peers for promotion
Visiting of Educational Institutes	Irregularly	Over 400 teachers and students from 11 units visited the factory and were introduced to the TCC's open factory philosophy, circular economy, and other industrial practices.	Academic visits help TCC showcase its expertise and sustainable practices, strengthen industry-academia ties, attract talent, and spark innovative collaboration opportunities.

Means of Engagement	Frequency of Engagement	Engagement of Performances	Engagement Experiences and Feedback
Phone call & email	Irregularly	Timely bidirectional communication engaged	The latest sustainability trends and the industry practices gained, faciltating the review of the directions of sustainabilty strategies at TCC
Sustainability exchange activities	Irregularly	Several sustainability-related activities and seminars attended

Means of Engagement	Frequency of Engagement	Engagement of Performances	Engagement Experiences and Feedback
Phone call & email	Irregularly	Timely bidirectional communication engaged	Showcase of corporate policies and practices for further exchange with environmental groups/NGOs to identify opportunities for improvement of TCC
TCC Corporate website, Facebook Page/WeChat official account/Instagram	Irregularly	Sustainable actions communicated externally

Sustainability Impact Valuation

Since 2023, TCC has reviewed the impact of its value chain activities on human well-being through an external perspective (Outside In). Following the Natural Capital Protocol, the Social & Human Capital Protocol, and the ISO 14008:2019 framework for environmental impacts and related considerations, TCC further integrates the Impact-Weighted Accounts (IWA) developed by Harvard Business School and the monetary valuation methods from the Value Balancing Alliance (VBA) into Materiality Analysis. From upstream supply chain and production operations to downstream products and services, TCC employs the impact pathway method to analyze the cross-domain intersections of economic, environmental, and social issues. Based on Profit and Loss (P&L) approach, TCC incorporates externalities, whether costs (negative) or benefits (positive), transforming the changes and impacts of operational activities on stakeholder well-being into a consistent monetary language. The sustainability impact management framework is based on the Triple Bottom Line (TBL).

Just Transition

Potentially Impacted Facet

Hard-to-abate industry's transition

Changes in the labor employment structure

Installation of new energy project sites or biodiversity areas nearly TCC plants

Information opacity and asymmetry

Green inflation born from net-zero transition

Strategy

Measures

Support the industrial transition of cement industry

Actively engage with agencies like MOEA, MOI, Public Construction Commission, and MOE, participating in amending construction regulations for low-carbon products, including the roles of public construction, chloride ion, and commodity tax.
Launch the Total Solutions for low-carbon and new energy buildings, strengthen the application and promotion of low-carbon construction material products.
Provide GHG inventory courses to suppliers and set up "the supplier and client program" TCC Carbon Academy in 2024.

Participate in industrial/- sustainability associations for more communication

Partake in the GCCA meeting to formulate net-zero pathway solutions with peers.
Participate in associations like Taiwan BIM Alliance of NTU and the Low Carbon Building Alliance, capturing processes and perspectives of civil engineering talent development and enhance product applications.
Advocate and discuss Taiwan's construction industry's carbon competitiveness and trends at major sustainability events and at Operation Headquarters.

Avoid impact on employees' rights and interests

TCC provides the "Sustainable Learning Passport" and "Carbon Academy'' to enhance employee sustainability awareness and foster carbon management expertise.
Provide professional skills training and helps in acquiring licenses/certificates for new roles emerging from the transition.
Organize "Hoping Plant Cement Workshop" to develop new potential from employees.

Ensure the rights and interests of communities near TCC plants

Applied for tribal consultations and consent to protect local residents' rights and interests
Open the Electrical Engineering Talents Program at Szu-Wei Senior High School, Hualien. Offer local students exam-free entry and aid in certification attainment.
Establish DAKA Market as the local startup incubator.

Expand communication to reduce transition risks

Publish Stakeholder Engagement Policy.
Periodically update stakeholders through the corporate website, Sustainability Reports, and social media to improve engagement and communication.
Promote the "Carbon Reduction Parent-Child Bankbook" to simulate carbon currency transactions
Establish communication venues such as TCC DAKA Open Eco-Factory and Hanben Ocean Station.

Assist in reducing costs in switching to green lifestyle

Provide employees with subsidies for green transport, negotiate discounts with electric motorcycle brands, and offer on-site promotions and sales.
Promote "EARTH HELPER, the Carbon Reduction Sustainability Action" campaign for a lifestyle transformation.
Install smart recycling machines and eco-friendly laundry/dishwashing refill stations at TCC DAKA, offering discounts to travelers using eco-friendly utensils.