Stakeholders

We have identified material issues annually with reference to the GRI Standards and the four AA 1000 Accountability Principles: Inclusivity, Materiality, Responsiveness, and Impact. Additionally, based on the foundation set for stakeholder communications and feedback in accordance with the GRI Universal Standards 2021 and with reference to other international sustainability standards, such as SDGs, TCFD Recommendations, SASB Standards, and the S&P we heard and analyzed the needs and expectations of stakeholders to identify and assess the significance of economic, environmental, and the social impact of material issues as reference for the planning of sustainable development strategies and as a basis for the information disclosures in this report.
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Addressing the needs and expectations of stakeholders is the critical path to sustainability and success for any enterprise. At Chroma, we believe that through engagement with our stakeholders, we will be able to understand their needs and expectations and this will enable us to respond accordingly. Such exchanges not only help the Company to review and plan its short/mid/long-term strategies but also allow us to create value for our stakeholders as well as new opportunities for sustainable operations.

After all the stakeholders had been identified using the five attributes in the AA1000 Stakeholder Engagement Standard (2015) (AA1000 SES 2015): dependency, influence, responsibility, diverse perspectives, and tension. The major stakeholder groups were defined according to their importance. The results were used to assess the economic, environmental, social, and human rights significance of these issues for reference in planning sustainable development strategies and as a basis for information disclosures in this report. According to this principle, Chroma defines its main stakeholders as customers, employees, suppliers, the government and regulatory authorities, and investors (shareholders, board of directors, and subsidiaries). A comparison with the 2022 annual report, shows that local communities are no longer recognized as primary stakeholders. This is because both the headquarters and various branches of Chroma are situated within industrial zones, and have minimal impact on nearby communities. However, the Company continues to allocate resources toward social engagement. The Company uses various channels to conduct regular and ad-hoc communications to understand stakeholder expectations. Stakeholder engagement was also a source of information about sustainability issues and impact assessment.

Stakeholder
Investor (including shareholders and the Board)

Significance to Chroma
Create steady profit and ROI while also demonstrating sustainable governance.

Approach and Frequency of Engagement

[Regular]

  • AGM (once a year)
  • Board meetings (convened 5 times in 2023)
  • Annual report (once a year)
  • ESG report (annual investors conference)
  • Financial statements (quarterly)

[Irregular]

  • Corporate website

Stakeholder
Competent authorities

Significance to Chroma
Abide by laws and regulations, cooperate with the government on policies, and address the stakeholder expectations from Chroma.

Approach and Frequency of Engagement

[Irregular]

  • Market Observation Post System (MOPS)
  • Government documents
  • Policy outreaches
  • Onsite audits

Stakeholder
Customer

Significance to Chroma
Each customer feedback item is an important nutrient for development and CRM optimization. Analyze and review the comprehensive needs and opinions of customers to gain an in-depth understanding of them to facilitate subsequent improvements.

Approach and Frequency of Engagement

[Regular]

  • Internal quality and review meetings
  • Customer satisfaction survey

[Irregular]

  • Business visits
  • various sales meetings and technology review meetings

Suppliers
Customer

Significance to Chroma
We have built a reciprocal value chain with our business partners that emphasizes balanced ESG collaboration to create a new business model and enhance competitiveness.

Approach and Frequency of Engagement

[Regular]

  • Supplier conferences and guidance meetings are regularly held
  • Suppliers are audited and rated periodically

[Irregular]

  • Supplier grievance channels
  • Supplier technology seminars

Suppliers
Employee

Significance to Chroma
We care about the needs of employees and have built a friendly workplace environment. Hazard identification and risk assessment have been implemented to reduce potential accidents and encourage organizational coherence and commitment in our employees. Our health checkup system is being continuously optimized and steps have been taken to improve gender equality measures. We care for the health and protect the human rights of our employees.

Approach and Frequency of Engagement

[Regular]

  • Labor-management meeting
  • Monthly/weekly/labor representative meetings at each plant

[Irregular]

  • Immediate supervisors
  • HRD responsible personnel
  • A corporate bulletin board
  • An employee suggestion box
  • Employee seminars
  • Employee grievance channels
  • Training courses
  • Policy outreach meetings

Survey of the Chroma Material ESG Issues

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12 material issues were identified by Chroma in 2023
  • Environmental (E) impacts: There are 4 high-impact issues, which is one more than in 2022. However, this is because “Climate Change” and “Energy Management” are now two separate issues, the others remain unchanged.
  • Social (S) impacts: There are 4 high-impact issues. “Customer Privacy and Information Security,” previously categorized under social aspects in 2022, that have been moved to corporate governance. With the growing emphasis on human rights issues, Chroma has also taken these into account.
  • Corporate Governance (G) impacts: There are 4 high-impact issues. “Operational Risks / Risk Management” has replaced “Business Ethics and Integrity Management” from 2022. This does not imply that the latter issue is less important. Integrity has always been a paramount employee behavior guideline at Chroma, a core value firmly ingrained as a fundamental philosophy of Company operational strategy.

Material topic
Waste management

Meaning for Chroma
We periodically follow up and report the weight of waste, set reduction targets, and publicize the resource recycling achieved by our plant and the energy conservation goals for our facilities.


Material topic
Climate change

Meaning for Chroma
Reducing greenhouse gas emissions is a global environmental protection trend. Through quantified greenhouse gas inventories and monitoring reports, we aim to promote the control and reduction of greenhouse gas emissions.


Material topic
Energy Management

Meaning for Chroma
We have made a conscious effort to reduce resource and energy consumption in our operating processes to save energy conservation and to cherish our planet. Energy and resource management is a strategy that powers sustainable operations, while systemic management facilitates energy conservation to improve environmental performance.


Material topic
Green Product

Meaning for Chroma
Chroma is committed to becoming a world-class enterprise. While operating on a global scale, we actively address the impacts of climate change. We implement measures to respond to environmental concerns and promote green initiatives in our R&D, manufacturing, products, and services. The results of technological innovation are evident in the outstanding performance and features of our new products. Furthermore, green design principles are integrated into every stage of the product lifecycle to minimize environmental impact and fulfill product responsibility and consumer expectations.

Scope of Impact of Material Issues

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Material topic
Occupational health and safety management

Meaning for Chroma
Chroma has maintained safe and healthy workplaces and has formulated an employee health management plan which provides front line protection for our employees.


Material topic
Talent development, education and training

Meaning for Chroma
With the long-term development of talented persons as an ultimate goal, we cultivate talent in new employees from scratch. Chroma has an excellent supporting mechanism and cultivation plan that accelerates the growth of talented vision and ability.


Material topic
Human Rights and Labor-Management Relations

Meaning for Chroma
Employees are our most important partners and great emphasis has been placed on their work environment, its development, and health care. We have established diverse internal communications channels and carried out various employee relations initiatives, aiming to create a supportive work environment for our colleagues.


Material topic
Social engagement

Meaning for Chroma
Chroma collaborates with the Chroma Foundation to implement corporate social responsibility through four core-value pillars: “Science Education,” “Humanities and Arts,” “Environmental Sustainability,” and “Caring and Sharing.”

Scope of Impact of Material Issues

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Material topic
Operational Risks / Risk Management

Meaning for Chroma
Chroma manages the business based on its stable operation and the principles of integrity and honesty, builds up a thorough corporate governance structure and carries out relevant tasks to protect the rights and interests of stakeholders.


Material topic
Supply chain management

Meaning for Chroma
Suppliers are important partners for sustainable growth. By implementing sustainable supply chain management, we aim to reduce operational risks and costs, ensuring we can consistently deliver responsible and high-quality services to our customers.


Material topic
Economic performance

Meaning for Chroma
The Company is committed to maintaining a stable financial performance for all the stakeholders.


Material topic
Customer privacy and information security

Meaning for Chroma
As a leading developer and supplier of precision monitoring and measurement equipment, we are committed to enhancing our information security framework and protecting our Company's critical information assets and customer data through innovative technologies and close collaboration with key partners. Faced with increasingly severe cybersecurity threats, we achieve continuous improvement through the ISO 27001 information security certification and the Plan-Do-Check-Act (PDCA) cycle model.

Scope of Impact of Material Issues

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