Asia Cement Deepens ESG Governance, Secures Prestigious Sustainability Awards

Second list of winners of Taiwan Corporate Sustainability Awards was announced on the 11^th of this month.  Asia Cement Corporation (ACC) has clinched multiple awards at the Taiwan Corporate Sustainability Awards, and was named one of Taiwan's top 100 sustainable enterprises for three consecutive years and receiving the Platinum Award for Sustainability Reporting for four consecutive years for its comprehensive disclosure of its effort on sustainability. These accolades underscore ACC's comprehensive ESG performance. Tony Yu, Vice President of ACC, emphasized that the company's detailed sustainability reports foster transparency in corporate operations. This commitment reflects both commitment to internal governance and responsibility to external stakeholders. ACC is actively engaged in environmental protection and community involvement, demonstrating that actions that enable a sustainable business is not merely implanted for purpose of achieving some goal but a true reflection of what runs in the daily operation of the Company.

To embed sustainability into corporate governance and reflect on remuneration policy, ACC has linked remuneration of executives to indicators that evaluate Company’s performance on ESG. During annual evaluation on the executives, 6% of variable remuneration for executives is pegged with ESG performance and therefore, create a strong internal incentive. Moreover, ACC strictly adheres to the ISO 37001 anti-bribery management system, with all directors and employees signing anti-bribery policy compliance statements in 2023. This demonstrates ACC's zero-tolerance policy towards bribery and corruption.

In terms of talent development, ACC's employee stock trust plan, launched in 1998, allows employees to share in the company's growth. As of the end of 2023, 73% of employees is eligible for this plan, with nearly 60% participating. ACC cultivates internal talent by supporting employees' career growth through transparent and fair internal transfer and cross-departmental learning opportunities. This has resulted in a consistently low voluntary turnover rate; for instance, excluding retirements, the voluntary turnover rate was only 3% last year.

To address the global climate change challenge, ACC has developed various strategies for carbon reduction in short-term, medium-term, and long-term which eventually lead to net-zero. In addition to promoting circular economy and producing low-carbon cement, ACC is investing in carbon capture and utilization (CCU) technology, aiming to capture and reuse 18,000 tons of carbon emissions annually by 2030. The ISO 14001 environmental management system which has been adopted among 86% of ACC's major manufacturing sites, and environmental performance is directly linked to executive remuneration. This underscores ACC's rigorous approach to environmental governance.

ACC actively fulfills its corporate social responsibility through various community engagement programs, fostering harmonious relationships with local communities. The Company has established contact points at its major operating sites to support local development. In terms pf promoting environmental education, ACC's large-scale environmental education programs have reached 191,514 people and supported the creation of 34 butterfly habitats, making significant contributions to Taiwan's ecological conservation.

ACC's sustainability achievements are rooted as the result of efforts of all employees and commitment to the community. Through excellent corporate governance, deep-rooted talent cultivation, and the promotion of low-carbon technologies, ACC has not only achieved business success but also lead the industry towards a sustainable future, setting a new benchmark for corporate development.