Corporate Sustainability Corporate Sustainability Corporate Sustainability

CORPORATE SUSTAINABILITY

CORPORATE SUSTAINABILITY

HUMAN RIGHTS MANAGEMENT


Human Rights Management _

Rexon Industrial is dedicated to observing international human rights standards, including the United Nations Universal Declaration of Human Rights, United Nations Global Compact, and the International Labor Organization Declaration of Fundamental Principles and Rights at Work, and abides by relevant laws and regulations. We strive to maintain harmonious labor-management relations, realize equality and ensure health and safety at the workplace, and enhance the physical and mental balance of the employees. We have established management regulations, including the “Work Rules”, the “Illegal Infringement Hazard Prevention Plan”, and the “Personnel Management Regulations”. These explicitly state the protection of the human rights of the employees, including basic legal requirements, freedom of employment, humane treatment, prohibition of Inappropriate discrimination and sexual harassment. To enhance the awareness of human rights among the employees and protect their rights and interests, we have established a diverse and effective communication mechanism, set up a sound remuneration and welfare system, and provided training and development opportunities as well as relevant courses. The Company retains and publishes the Work Rules, Workplace Illegal Infringement Hazard Prevention Plan, and Personnel Management Regulations in its private cloud database for all employees to access at any time. We organize periodical education and training on illegal infringement to enhance the awareness of human rights among the employees and promote workplace safety. In addition, we use QR-code (as shown in the figure) cloud to establish an anonymous complaint channel, enhance the function of this channel, and protect employee’s privacy.

RIGHTS MANAGEMENT

MEASURES AND ACHIEVEMENTS


Human Rights Policy-Measures and Implementation _

Human
Rights Policy
Opportunities for<br>Diversity, Inclusion,<br>and Workplace Equality Opportunities for
Diversity, Inclusion,
and Workplace Equality
Promoting Harmonious Labor-Management Relations Promoting Harmonious Labor-Management Relations
Healthy and Safe Workplace Healthy and Safe Workplace
Respect for Privacy and the Right<br>to Freedom of Association Respect for Privacy and the Right
to Freedom of Association
Prohibition of Forced<br>and Compulsory Labor Prohibition of Forced
and Compulsory Labor
Child Labor Child Labor

Opportunities for Diversity, Inclusion,
and Workplace Equality

  1. Adhere to government labor laws and regulations, and implement internal management policies accordingly.
  2. We provide employees with a gender-equal and diverse working environment, and strive to create a working environment that is dignified, safe, equal, and free of discrimination and harassment.
  3. In 2023, Rexon established the Gender Equality Committee, which held 2 meetings in 2024 to review and update existing policies, as well as continuously monitor and evaluate their effectiveness.
  4. As of the end of December 2024, Rexon and Rexon Technology received no complaints over employment discrimination.

Prohibition of Forced
and Compulsory Labor

Adhere to government labor laws and regulations, respect the willingness of the employees, and prohibit forced labor; establish complaint channels and a set of reasonable and persuasive complaint handling procedures.

Child Labor

During the summer vacation of 2024, Rexon hired 3 workers and did not employ any child labor.The main purpose of the Company to hire adolescents is to provide them with valuable workplace experience, facilitate their growth and development, help train future laborers, and enable them to learn skills and values at work. Through proper guidance and supervision, we ensure that their work environment is safe and legal, and thus enhance the commitment of the Company to the sustainable development.

Respect for Privacy and the Right to Freedom of Association

Rexon recognizes legal trade unions established by the employees and supports the employees in their freedom to organize trade unions. Rexon Industrial Union was established on April 27, 1984, and was renamed Rexon Union on October 31, 2012. Union representatives are jointly elected by all employees. Rexon respects their rights to negotiate with management and actively communicates and interacts with the union organization.
Rexon Technology has not yet established a labor union. However, it recognizes the legally established labor unions formed by employees and supports the freedom of association.

Healthy and Safe Workplace

Adhere to government regulations, provide employees with a safe and healthy work environment, regularly evaluate environmental safety, and promptly maintain the environment to achieve the goal of zero occupational accidents.

Promoting Harmonious Labor-Management Relations

  1. Providing diverse communication channels and holding regular labor-management meetings to foster harmonious relations between labor and management and create a favorable labor-management environment.
  2. Four meetings were held in 2024 to ensure thorough communication between labor and management.

In order to enhance employees’ awareness of human rights, the Human Resources Department not only displays posters on the factory’s public bulletin board but also arranges education and training sessions in phases to ensure compliance with human rights-related laws and regulations and a clear understanding of their implementation. The course implementation method and participation rate in 2024 are as follows:

Implementation Method

Number of Employee Participants
(or Number of Supplier Participants)

Total Number of Employees
(or Total Number of Supplies)

Participation Ration(%)

Implementation Method

Education and training on gender equality

Number of Employee Participants
(or Number of Supplier Participants)

315 people

Total Number of Employees
(or Total Number of Supplies)

688 people

Participation Ration(%)

44%

Implementation Method

Employee human rightseducation and training

Number of Employee Participants
(or Number of Supplier Participants)

304 people

Total Number of Employees
(or Total Number of Supplies)

688 people

Participation Ration(%)

57%

Implementation Method

Health careeducation and training

Number of Employee Participants
(or Number of Supplier Participants)

321 people

Total Number of Employees
(or Total Number of Supplies)

688 people

Participation Ration(%)

47%

Implementation Method

Family relationship Course

Number of Employee Participants
(or Number of Supplier Participants)

136 people

Total Number of Employees
(or Total Number of Supplies)

688 people

Participation Ration(%)

20%

Implementation Method

Occupational safety courses

Number of Employee Participants
(or Number of Supplier Participants)

392 people

Total Number of Employees
(or Total Number of Supplies)

688 people

Participation Ration(%)

46%

  • In 2024, requirements regarding freedom of association and collective agreements were incorporated into the management aspects of supplier audits. We also promoted human rights policies during supplier conferences and supplier audits.
  • All security personnel of Rexon are full-time employee; no outsourced security personnel are used. Training on anti-discrimination, sexual harassment, workplace bullying, education on relevant notification mechanisms, anti-terrorism education, fire safety education, access control, access to containers, and cargo safety were arranged for security personnel in 2024 to help them gain better understanding of the work system and their job. Each of them took 3.5 hours of training. Managers conduct ad hoc supervision and regular evaluation to ensure compliance with regulations.
  • Rexon Technology is located at Rexon Renhua Plant and does not have its own security personnel. All security personnel are subject to Rexon’s regulations
  • Rexon provides indigenous peoples with one-day leave for their annual ceremonies. In 2024, a total of four employees applied for this leave and there were no incidents involving violations of the rights of indigenous peoples.

TALENT CULTIVATION AND RETENTION


Talent Cultivation and Retention (Material Topic) _

Description of positive benefits

Description of
positive
benefits

Actual positive :
Through strengthened talent pool training and a mentorship-based case study learning model, the Company can adapt more flexibly to future challenges and ensure long-term competitiveness.

Description of negative benefits

Description of
negative
benefits

Potential negative :
Failure to achieve talent cultivation and retention goals due to insufficient resources or ineffective execution may result in talent loss and hinder long-term development.

Remedial mechanism

Recruitment stage

Develop a transparent and well-defined recruitment process to ensure that applicants fully understand the work content and workplace environment, minimize post-employment adaptation gap, and increase the retention rate.

  1. Clearly presenting the position information and enterprise culture. Detailed position requirements and corporate culture presented on the recruitment platform enable the applicant to understand their fit for the role before applying.
  2. Arrange interviews with department supervisors and human resources specialists. Through in-depth communication, the applicant can understand real work situations, thereby ensuring mutual expectations are aligned.
  3. Provide applicants with a perspective of the workplace environment, practical operation experience, or professional hands-on tests, so they can genuinely experience the job contents and assess how well their skills match the job requirements. The Company can also observe the applicant’s performance and potential through this process.

Onboarding

  1. A letter from the Chairman to new employees may help them understand the company’s business direction.
  2. Help new employees adapt to the overall environment of the Company through comprehensive education and training of new employees.
  3. The unit supervisor and the human resources specialist pay close attention to employees’ adaptation status to help them adapt more easily.
  4. When signs of change appear in employees, the unit supervisor and human resources department conduct interviews, aiming to retain talent.
  5. The unit supervisor and the human resources department jointly analyze the key factors of retention and resignation to improve the retention rate.

Talent Developmen

The Company continues to refine its training system and achieve the goal of comprehensive training for employees through Rexon Academy, a digital education and training platform, thereby enhancing employees’ confidence in the workplace to achieve better talent-job alignment.

Complaint/communication channels

The Company attaches great importance to cultivating talents and establishes seven training communication channels to ensure that employees can participate effectively.

Direct communication and response between employees and managers

Direct communication and response between employees and managers

Education and training platform of Rexon Academy

Education and training platform of Rexon Academy

EAPs hotline

EAPs hotline

Company’s hotline

Company’s hotline

Whisper Zone

Whisper Zone

Opinion mailbox

Opinion mailbox

Labor-management meetings

Labor-management meetings

Rexon's goals

2024 Action Plan Implementation Results

Action Plan :

  • In 2024, the Company established the “equal learning opportunities” program within Rexon Academy and its four academies: Sales, Marketing, Materials, and Quality Assurance.
  • Select key talent and implement a mentorship system
  • Host internal lecturer training to strengthen the internal knowledge transfer and professional skill development within the Company.
  • Organize guest lectures by industry experts to promote knowledge exchange, broaden horizons, and inspire innovative thinking.
  • Each department conducts internal training and study groups to share their knowledge and maximize learning outcomes, thereby fostering a team learning culture.
  • Participate in the Innovative Industry In-Depth Workplace Experience Program organized by the Bureau of Labor to help young people build up a well-rounded understanding of the workplace.

Implementation results :

  • Four academies: Sales, Marketing, Materials, and Quality Assurance with 62 courses planned. Of these, 61 were successfully launched, resulting in a course implementation rate of 98%
  • A total of 19 key talents from various departments were selected to participate in the mentorship system.
  • 20 seed teachers were trained, passed a rigorous evaluation, and obtained the qualification certificate.
  • Held 11 guest lectures by industry experts and 3 lectures by internal lecturers
  • A total of 609 internal and external training sessions were conducted, accumulating 14,715 participant-hours.
  • A total of 5 sessions of the workplace experience activities were held, with 56 participants in total.

Achievement status of 2024 goals

Goals :

  • Promote internal lecturer training.
  • Build Rexon University and establish functional courses for each academy, improve employee’s functional development, and improve the talent training learning map.
  • The goal for 2024 was to provide 600 classes for the internal and external training and for the departments with an increase of 10% from the previous year.

Achievement status
(Goals achieved) :

  • 20 seed teachers were trained, passed a rigorous evaluation, and obtained the qualification certificate
  • Established four academies at Rexon and developed specialized functional courses.
  • Selected 19 key talents and held 3 sharing seminars
  • In 2024, a total of 11 guest lectures by industry experts and 3 lectures by internal lecturers were held
  • In 2024, a total of 609 internal and external training sessions were conducted, accumulating 14,715 participant-hours.

Short-term Goals
(2025-2026)

Cultivate overseas business talents with international perspectives and cross-cultural adaptability.

Medium-term and Long-term Goals
(2027~2031)

Create a challenging and innovative sustainable work environment to stimulate employee potential, and cultivate a competitive talent pool committed to environmental, social, and governance responsibilities.

Sustainable action: In-depth workplace experience and ESG sustainability responsibilities

Sustainable action

Cultivate young innovative talents through industry-academia collaboration, deepen workplace awareness, and promote sustainable talent development. In 2024, the Company actively interacted with students, providing them with financial assistance and building a career consultation platform trough real workplace experience and in-depth communication. Through carefully designed workplace experience activities, students gain a clearer understanding of the gap between academic knowledge and actual job requirements. Interaction with supervisors can spark students’ enthusiasm and interest in the industry, while also preparing them to face future workplace challenges. Tangible results are as follows :

  1. The amount of donations increased from NT$67,000 in 2023 to NT$117,000.
  2. 3 people received gifts in 2023, and 5 people are expected to receive gifts in 2024.
  3. In 2024, a total of 56 people participated in 5 workplace experience activities
Sustainable action Sustainable action Sustainable action Sustainable action

EMPLOYEE RIGHTS AND BENEFITS


Employee Rights and Welfare(Material Topic) _

Collective Agreement

The Company maintains smooth communication with the labor unions. All labor relations and related matters are implemented and executed in accordance with applicable laws and regulations. The Company has established a corporate labor union; however, since the labor union has not yet proposed negotiation requirements for a collective agreement with the Company, no such agreement has been signed. Rexon values employee rights and opinions. According to the law, labor-management meetings are held every three months. In the case of significant events, thorough communication is conducted through labor-management meetings. In 2024, a total of four labor-management meetings were held, and all discussion items were expressed and resolved through the representatives of both labor and management, leading to successful conclusions. PTI has not established a labor union, so there is no group agreement signed. PTI values the rights and opinions of employees. We hold a labor-management meeting every three months as required by law. In case of a major event, we also hold a special labor-management meeting to communicate and effectively resolve various issues.

Retirement Pension Allocation

To safeguard employees' post-retirement rights, Rexon and Rexon Technology have established the Retirement Regulations. To assist them in properly arranging and adapting to future life changes, the company has established an Employee Retirement Policy in compliance with relevant laws and regulations, which has been approved by the competent authorities. At the same time, to protect employees' rights to claim retirement pensions in the future, the HR department arranges explanatory meetings when employees submit retirement applications to explain their entitlements and conduct retirement pension calculations. The HR department also sets up a service counter to provide employees with consultation services at any time.

Applicable Law

Labor Standards Act

Labor Retirement Pension Regulations

Applicable Law

Retirement Conditions

Labor Standards Act

  • Employees with a work experience of 15 years or more and aged 55 or above.
  • Employees with a work experience of 25 years or more
  • Employees with a work experience of 10 years or more and aged 60 or above

Labor Retirement Pension Regulations

A worker who is sixty years or older may claim for retirement payment according to the following regulations :

  • Workers whose seniority exceeds fifteen years may choose to receive either monthly pension payments or a lump-sum pension payment
  • Workers whose seniority is less than fifteen years shall claim for a lump-sum pension payment.

Applicable Law

Retirement Pension System

Labor Standards Act

Old pension system - Bank of Taiwan Account

Labor Retirement Pension Regulations

New pension system - individual labor pension account

Applicable Law

Implementation

Labor Standards Act

  • Establishment of “Retirement Preparation Fund Supervisory Committee."
  • Full allocation of retirement pension in accordance with the law.

Labor Retirement Pension Regulations

  • Contribute 6% of the employee’s insured monthly salary.
  • Employees who joined the company before June 30, 2005 (inclusive) can choose to be eligible for the new retirement pension scheme, starting from the qualifying years of the new retirement pension scheme.
  • Employer contributes 6% every month.

Applicable Law

Proportion of employees

Labor Standards Act

4.6%

Labor Retirement Pension Regulations

95.4%

Welfare System

The Company not only values professional work but also emphasizes the work-life balance of employees. To maintain employee welfare and promote activities, a Employee Welfare Committee consisting of 22 members from both labor and management is responsible for handling related welfare matters. The committee provides diverse activities and subsidies for all employees, aiming to create a happy workplace. The total expenditure for employee welfare activities in 2024 was NT$6,394,956.

  • Legal welfare benefits include: Lactation room, two days off per week, Family care leave, Paternity leave, Maternity leave, Special leave, Parental leave, Menstrual leave for female employees, Retirement pension contributions, Pregnancy examination leave, Employee physical examinations covered by employment insurance, Occupational accident insurance.
  • Other Welfare Systems :

Type

Contents and Description

Type

Remuneration-related

Contents and Description

  • Annual Bonus : Issued based on the company's annual performance and individual performance of employees.
  • Profit Sharing : Allocation of earnings based on the company's articles of incorporation.
  • Employee Stock Trust : Encourages employees to plan for savings, accumulate wealth, and secure their future.
  • Performance Bonus : Rewards employees for achieving predetermined goals.
  • Improvement Proposal Bonus : Encourages all employees to actively participate in proposing improvements, utilizing their talents and wisdom to continuously enhance their work.

Type

Activities

Contents and Description

  • Family Activity Day : Hiking, barbecue.
  • Club activities : Mountaineering, badminton, yoga, singing, fishing, handicrafts, biking, intellectual leisure, succulent planting, camping club, and other clubs to promote work-life balance.
  • Dinners/Travel : Subsidies for employee dinners or travel to foster cross-departmental relationships and promote filial piety by allowing employees to invite their parents to participate in these activities.

Type

Festivals

Contents and Description

  • Various Cash Bonuses : Birthday bonus, Labor Day bonus, Mid-Autumn Festival bonus, year-end lucky draw bonus.

Type

Attendance and Leave

Contents and Description

  • Friendly Leave without Pay : Allows employees to take time off without pay to take care of personal health or family matters.

Type

Subsidies

Contents and Description

  • Emergency Assistance Subsidies : Subsidies for employees' marriage, childbirth, house purchase, children's marriage, hospitalization, military service, and funeral.
  • Employee/Child Scholarships : Provides scholarships for employees or their children based on conduct and academic performance, expressing the company's care, love, and encouragement.
  • On-the-job Training : Encourages employees to pursue lifelong learning opportunities and subsidizes three-quarters/one half of EMBA credits depending on the position of the employee.

Type

Facilities

Contents and Description

  • Employee Gym : We have also established a five-star gym to promote exercise habits and provide free access to employees, encouraging them to incorporate daily physical activity into their routines.
  • Employee Parking Lot : Equipped with license plate recognition system to provide free and secure parking for employees' motorcycles and cars.
  • Rest Areas for Employees : Comfortable rest facilities and vending machines for replenishing physical and mental energy.
  • Lactation Room : Provides a comfortable and private space for breastfeeding without time or frequency restrictions
  • Medical Room : Provides daily medical services, health education, and monitoring of health indices.

Type

Health

Contents and Description

  • Free Lunch and Dinner : Professionally prepared rich and healthy meals.
  • Medical check-ups : Emphasizes employee health and provides insights into personal physical conditions
  • Doctor's Clinic : Regular visits by doctors for professional consultations (full-time nurse and monthly doctor visits).
  • Employee Assistance Programs (EAPs) : Promotes the physical and mental health of the employees and provides external psychological consultation channels.

Type

Others

Contents and Description

  • Employee Uniforms : Free provision of employee uniforms every year.
  • Happy Farm : Set up agricultural land on the rooftop of the factory area, allowing employees to experience the joy of farming, cultivate their desired flowers and vegetables, and share their achievements with family and friends.
  • Self-growth : Provide a management knowledge base platform to provide managers with professional knowledge and resources and help them grow and learn continuously in the management field.

Number of Parental Leave Applications from 2022 to 2023

Category / Year, Gender

2023

Male

Female

Total

2024

Male

Female

Total

Number of eligible individuals for maternity leave A

45

38

83

44

28

72

Number of actual maternity leave applications in the current year B

1

15

16

2

6

8

Number of individuals expected to return to work after maternity leave in the current year C

3

15

16

2

6

8

Number of individuals who actually returned to work after maternity leave in the current year D

2

10

12

0

3

3

Number of individuals who returned to work after maternity leave in the previous year E

0

9

9

2

10

12

Number of individuals who continued working for one year after returning from maternity leave in the previous year F

0

4

4

1

6

7

Maternity leave return rate in the current year % (D/C)

66.67

71.43

70.59

0.00

37.50

33.33

Maternity leave retention rate in the current year % (F/E)

0.00

44.44

44.44

50.00

60.00

58.33

Application eligibility: Based on the number of the employees who applied for maternity leave and paternity leave within three years calculated backward from the current year. (1/1/2021 - 12/31/2024)
Calculation basis for actual applications: Effective from 1/1/2024 to 12/31/2024

OCCUPATIONAL SAFETY AND HEALTH


Occupational Safety and Health (Material Topic) _

Description of positive benefits

Description of
positive
benefits

Actual positive:
By continuously optimizing the environmental safety and health management system, we proactively respond to new regulations and industry standards, effectively predict and reduce occupational injury risk, and create a safer working environment. This not only protects employee health but also enhances their satisfaction and work engagement, thereby driving overall productivity growth.

Description of negative benefits

Description of
negative
benefits

Potential negative:
A lack of effective workplace health and safety management may expose employees to potential risks and increase the likelihood of occupational accidents, thereby affecting work stability and the company’s overall image.

Remedial mechanisms/measures

  1. The Company has established an Occupational Safety and Health Management System, obtained the ISO 45001 certification, and maintained the effective implementation of the management system.
  2. A two-way communication platform (e.g. Occupational Safety Committee, safety meetings, suggestion boxes, internal reporting systems, etc.) has been established to encourage all employees to actively participate in occupational safety and health related activities, and to strengthen employee participation and communication mechanisms. A mechanism for continuous improvement and performance monitoring has been implemented.
  3. Annual Occupational safety and health events and health promotion were organized to strengthen the Company’s safety culture.

ISO 14001 and 45001 EHS system

assessment

improvement

implementation

two-way communication channel

Complaint/communication channels

Internal complaint : https://www.tovery.net/guestbook.asp?user=rexon_hr&page=1 (Rexon Whisper Message Zone)
External complaint : invest@rexon.com.tw

Rexon's goals

2024 Action Plan Implementation Results

Action Plan :

  1. Continuously implement the operating environment monitoring to ensure compliance with occupational safety regulations and standards.
  2. Regularly convene Safety and Health Committee meetings to implement occupational safety communication and improvement.
  3. Conduct employee evacuation and fire drills to enhance disasters response capabilities.
  4. Implement health promotion measures and an employee health management system.
  5. Undergo a third-party ISO 45001 audit.
  6. Strengthen supervisors’ understanding and sensitivity to the Employee Assistance Program (EAP).

Implementation results :

  1. Complete regular monitoring of the operating environment, with all results meeting applicable standards and regulations.
  2. 4 Safety and Health Committee meetings were held to track and discuss workplace risks, improvements, and abnormal events.
  3. 4 in-plant fire evacuation drills were conducted.
  4. 2 blood donation drives and annual health checkups were held.
  5. Certified under ISO 45001 safety and health management system.
  6. Conducted 12 sessions of the EAP sensitivity training course for supervisors.

Achievement status of 2024 goals

Goals :

  1. Certified under ISO 45001 Occupational Safety and Health Management System and fully complies with laws and regulations.
  2. Improve work environment safety for employees :
    1. Promote Employee Assistance Program (EAP).
    2. Actively promote employee health promotion measures.
    3. The occupational accident frequency rate (FR) decreased by 1% (10.07) compared to the previous year.

Achievement status :

  1. The ISO 45001 system is operating effectively, and all occupational safety regulatory requirements are being met.
  2. Continuous improvements in work environment safety for employees :
    1. The plan was executed smoothly, yielding stable results.
    2. The health promotion measures have achieved good results with employee participation.
    3. The occupational accident frequency rate (FR) decreased by 42% (VS 2023).

Short-term Goals
(2025-2026)

  1. Enhance the effectiveness and integration of the ISO 45001 management system : Establish a professional development system for internal audit personnel and train diverse professional auditors.
  2. Continuously reduce the occupational accident frequency rate (FR) Set the annual reduction target at 1% based on the 2024 FR.

Medium-term and Long-term Goals
(2027~2031)

  1. Shape a zero-accident culture :
    Shape an “autonomous safety culture” : Shift from passive compliance to active participation
  2. Achieve the goal of zero major occupational accidents:
    Gradually reduce the number of occupational accidents to zero year by year.

Sustainable action: Establish a happy workplace through environmental safety and health management cycles

Through continuous optimization of occupational safety and health management, the Company has developed and implemented improvement action plans to ensure that all deficiencies are addressed in accordance with the established plan. The internal audit results show that the workplace safety and employee health protection standards have been further improved following corrective actions. This demonstrates the Company’s improvement and accomplishments in occupational safety management. This achievement not only reflects the strengthening of the management system but also demonstrates an improvement in employees’ safety awareness, laying a solid foundation for the Company to pursue higher standards in occupational safety and health management. The disabling injury frequency rate (FR) in 2024 was 6.4, a decrease of 4.67% from 11.07 in 2023.