Stakeholder Communication

Stakeholder Engagement and Communication Channels

Phihong engages with its seven major stakeholders through diverse communication channels to understand their sustainability concerns. Responses were provided through various communication channels listed in the table below and in this report. Additionally, an annual report on communication with stakeholders, including survey results on their sustainability concerns, is presented to the Board at the end of each year.

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Key stakeholdes	Definition	The significance to Phihong	TOP 5 Sustainability Topics	Frequency and method of communication	Contacts	Communication Achievements in 2023
Shareholders/Investors	Long-term shareholders of Phihong refer to those who have held their shares for at least 2 years, including employee shareholders, shareholding directors & supervisors, and major shareholders.	Protect the rights and interests of investors and shareholders, implement corporate governance, continue to pay attention to and communicate with investment objects, and strengthen information transparency.	Financial performance and profitability/ dividend policy. Business strategy and outlook/ industry changes. Integrity management and anti-corruption. Climate-related financial risks report (TCFD). Innovation & technology R&D.	Monthly: Announcement of operating performance, public information observatory Quarterly: quarterly financial report Annually: shareholders’ meeting, annual report, sustainability report Irregular: legal talks, important information announcements	Spokesperson's email: spokesman@phihong.com.tw	Hold the annual Shareholder's meeting Hold 6 meetings with institutional investors Regularly announce financial and corporate governance information.
Customers	Top 10 customers, or international brand customers, or customers with over 3 years of long-term cooperation.	Listening to the voice of customers, prioritizing their needs, and consistently delivering higher-quality services are essential to enhancing customer value.	Adherence to responsible business alliance (RBA) code of conduct. Greenhouse gas emissions & carbon reduction management. Product quality and safety. Risk management. Product carbon footprint.	Annually: Customer Satisfaction Survey, CDP, EcoVadis Irregular: personal visits, phone calls, customer audits	Customer Service: phsales@phihong.com.tw Company official website: https://www.phihong.com.tw/	Revised and optimized customer satisfaction survey. Customer satisfaction rate: 81.87% (Phihong).
Employees	Newcomers and regular employees	Employees are the most important partners in Phihong's sustainable development. We are committed to creating a diverse, equitable, and healthy work environment, fostering mutual growth and development with our employees.	Salary and benefits. Occupational health and safety. Training and education. Employee care and support.	Weekly (monthly): video conference, weekly work report, reading club Quarterly: Labor-management meeting Irregular: CI improvement promotion platform, e-learning + digital learning platform	Employee comments/ grievance mailbox: HR@phihong.com.tw	Hold regular quarterly labormanagement meetings and employee welfare committee meetings. Organize annual performance appraisal, employee promotion and salary adjustment operations.
Suppliers	Top 50 suppliers, or key component suppliers, or suppliers with longterm cooperation for over 3 years	Phihong collaborates with supply chain partners to provide high-quality materials and services, aiming to establish sustainable partnerships and progress towards corporate sustainability together.	Supplier ESG assessment. Supplier carbon reduction management. Raw material quality management. Conflict minerals & hazardous substances management.	Monthly: Delivery meeting Annually: New supplier review and audit Irregular: supplier billboards, supplier visits, supplier conferences	Procurement contact: TEL: 03-327-7288#1917 Procurement@phihong.com.tw Supplier reporting contact: TEL: 03-327-7288#1340 charles_wang@phihong.com.tw	85% of our core suppliers signed the Integrity Pledge, a 3% increase from the previous year. 100% achievement rate in conducting 33 new supplier reviews (QSA) and 85 existing supplier reviews (QPA).
Community	Representatives from the local Local industry park management center where the factory is located and charity groups with frequent interactions	Engaging actively in community (park) participation, interaction and response, and caring for the vulnerables to achieve social inclusion goals, fulfilling sustainable corporate citizenship responsibilities.	Wastewater discharge and waste management. Environmental issues such as air pollution. Social welfare. Community service.	Weekly: Charity Massage with Visually impaired persons Monthly: Adopt a kindergarten and Guishan Little League team Quarterly: Sponsor arts and cultural performances Every year: public welfare activities such as waste reduction and beach cleanup, care for the disadvantaged, etc Irregular: Park management meeting	Community service hotline: ESG@phihong.com.tw	Environmental monitoring rate for wastewater discharge reached 100%, complying with regulatory requirements. Continued donations to environmental cleaning at orphanages, nutrition & donations to the Guishan Elementary School little league team, donations to the 100 NTD Club, and charity events like "Sending Love to Africa."
Government	Local competent authorities related to environmental, social and corporate governance matters	Adhering to relevant regulations of government agencies, actively cooperating with policy implementation, and gaining trust, support, and cooperation from the government through transparent two-way communication.	Corporate governance and integrity management. Integrity in business operations & regulatory compliance. Investor protection. Financial disclosure related to climate change (TCFD).	Annually: Government agency evaluation Irregular: Competent authority policy promotion meetings, regulatory review, official letters, project meetings, etc.	Report illegal or unethical event mailbox TEL: 03-327-7288#1340 charles_wang@phihong.com.tw	Regular disclosure of operational information on the public information observation station. Ranking 51%-65% in the 10th Corporate Governance Evaluation.
NGO/NPO	Academic institutions, non-profit corporate foundations and other non-profit organizations, experts or consultants with expertise in the field of sustainability	Collaborating with non-profit organizations to integrate resources and establish long-term sustainable partnerships, delving into environmental carbon reduction and social issues.	Financial disclosure related to climate change (TCFD). Carbon Disclosure Project (CDP). Science-Based Target's initiative (SBTi). Social participation and public welfare.	Annually: CDP, EcoVadis Irregular: attending activities related to sustainability issues, donating or sponsoring	Sustainability Office: TEL: 03-327-7288#1666 ESG@phihong.com.tw	Response to CDP Climate Disclosure Project, achieving C grade. Compliance with and response to SASB/TCFD guidelines. Recognition with the TCSA Taiwan Corporate Sustainability Award, Gold Award.