The provision of a safe and healthy employee workplace environment is one of the fundamental obligations of Chroma as a corporate citizen. At HQ (including Huaya Plant), Hsinchu Branch, and Kaohsiung Branch, we systemically implement occupational safety and management based on the plan-do-check-act (PDCA) cycle of the ISO 45001 OH&S management system. We have established health and safety units under the regional control of the top management of each plant and have hired professionals who plan, implement, supervise, and audit health and safety management. Each plant also has an occupational health and safety committee (OSHC) formed by labormanagement collaboration in accordance with the local legal requirements. The OHSC holds regular meetings to review, coordinate, and recommend health and safety management. The on-site Health and Safety units have established standard operating procedures (SOPs) for workplace health and safety management. In the education for workplace environment, equipment, and chemical management, we organize education and training activities and arrange drills in the protection of health and safety from time to time. In 2022 we began to implement the ISO 45001 OH&S management systems in HQ, including the Huaya Plant and the Hsinchu and Kaohsiung Branches. The scope of implementation covers all employees and contractors, including workers who are not employees, but whose work is controlled by the organization. We expect to pass third-party verification in 2023. 

We care about the workplace environment and the health and safety of workers. To uphold the spirit of Health and Safety all units carry out a comprehensive hazard identification and risk assessment of Chroma employees, contractors, visitors and others controlled by the organization, using risks levels based on "Regulations for
Management of Occupational Hazard Identification and Risk Assessment". Measures are also taken to eliminate unacceptable risks. An employee can also take the initiative and report hazards in the workplace or environment to the Health and Safety unit. This will help implement our goal of zero accidents and zero disasters through the joint
efforts of both labor and management.

Types of hazards the targets and scope of risk assessment:
Personnel controlled by the organization include Chroma employees and contract workers such as cleaners, security guards, catering service providers and so on.

Types of hazards and the risk assessment process:
Identify the potential hazard factors and determine their risk levels in the operation environment, manufacturing service, activities, products, and services and the exclusion of unacceptable risks. Hazard identification and risk assessment for contract workers. Contract workers are told about work-related risks and controls at construction and toolbox meetings. When new equipment is installed or manufacturing processes are changed, it is important to ensure the safety of personnel and also that of the factory area. To do this control measures are implemented from the source by a change of management, procedures including: a safety assessment before installation of new equipment or machinery and additional safety protection measures. These can include the replacement of dangerous chemicals with less hazardous ones etc.

Responsive measures for threats of acute hazards:
To ensure labor safety in the factory, it is made clear in the Chroma education and training courses that should there be immediate danger or serious accident in the workplace, the person in charge should immediately order the workers to stop the operation, or the workers themselves should immediately stop, and evacuate to a safe place. There will be no penalty of any kind for such action.

Operation control/action measures (hierarchical control mechanism)

(1) Commuting accidents: Accidents that occur on the road that employees take to and from work, including traffic and other accidents.
(2) Close calls: A work-related incident where no injury occurs, but which had the potential to cause harm.
(3)High-consequence accidents:
① Accidents with fatalities, with more than three casualties, or with two or more casualties requiring hospital treatment
② Fire
③ Accidents covered by the mass media
(4) Severe injury: serious damage that has caused partial organ dysfunction or failure, including amputation, blindness and deafness.
(5) Minor injury: occupational accidents that do not cause lost workdays.

Incident notification and data analysis:
(1) The health and safety unit should collect and record statistical data on the frequency rate (FR) of disabling injury and its severity rate (SR) each month and retain the results for future reference.
(2) The health and safety unit should report the statistics on occupational accidents to the labor inspection unit in accordance with the Occupational Health and Safety Act before the 10th of each month.
(3) When there is a high-consequence accident, the health and safety unit should report to the labor inspection unit within 8 hours of the occurrence.

We abide by the laws and regulations related to occupational safety and health education and training and provide occupational health and safety education and training for new employees and arrange related education and training for in-service employees from time to time. Additionally, education and training are arranged during work time, and no salary or leave will be deducted for participation.

However, the management of contractor personnel is complicated but unavoidable. While it is necessary to control their entry and exit to the plants, their appreciation of the need for awareness of safety can be a matter of some concern. In addition to the daily educational promulgation at toolbox meetings, first-time visitors and contractors to the plant are informed of the hazards by Center personnel to ensure that they understand the plant regulations.

In addition, when there are different contractors working on the same construction project at the same time and location, agreement needs to be made to ensure cooperation between them and to guarantee that those in charge handle any non-compliance and maintain enough vigilance to ensure proper compliance with the regulations. Although there were no contractor accidents in 2022, we were not satisfied with their overall behavior. We also expect all contractors to maintain a zero occupational accident rate.

To ensure worker and plant safety, autonomous and self-imposed inspections are carried out in addition to those made in accordance with the laws and regulations and Company work standards. Health and Safety Center personnel also conduct routine industrial safety inspection and irregular spot checks on contractor operations and
safety. Although we have started implementation of the ISO 45001: 2018 OH&S management systems, we still act on suggestions for improvement after monthly inspections by Occupational Health and Safety Management and from doctors who provide on-site medical services. The results have been good.

The Company has formulated a "Consultation and Communication Management Procedure". This facilitates the internal agreement on the ESH management system and other management mechanisms. It also establishes commitment and effective two-way communication channels for employees and related external organizations with respect to ESH and the other management mechanisms. Consultation with the workers about safety and health is necessary whenever changes are made to any workplace. The arrangement of the consultation must be documented and meeting notes and minutes should be taken. Stakeholders must also be informed of the changes.

Employees are Chroma’s most important asset, and health and safety is a primary employee right. To ensure a healthy and safe working environment for our employees and to implement the safety and health policy, we have set up an Occupational Safety and Health Committee which meets once every three months and has made the following recommendations.▶

38% of the total members of the Occupational Health and Safety Committee are labor representatives and the composition is as follows.
(1) Occupational health and safety personnel
(2) Heads, supervisors, and representative department personnel.
(3) Engineering and technical personnel related to occupational health and safety.
(4) Workers who provide occupation health services.
(5) Labor representatives.

Chroma carries out health checkups and management for new and current employees (as well as those engaged in special operations with potential exposure to ionizing radiation, lead, MDI, chromic acid, etc) on a regular basis and covers all the relevant costs.

Employee health checkups are arranged every two years. The next one is scheduled for 2023H1. Employees who have been with Chroma for a year or more receive health checkups that are more comprehensive than the statutory senior requirement. In addition to the statutory items, we also add items to the examination that that have been recommended by the in-house occupational medical specialists and factory nurses. These include ultrasonography, bone mass density, and others. Our employees enjoy better health care and benefits than most. In 2022, more than 98% of our employees qualified for the health checkup. In addition to hierarchical employee health management, we arrange appointments and consultations with in-house physicians for employees based on checkup results. We also arrange free registration at contracted base-level clinics for employees requiring medical attention. Chroma also organizes health education and lectures about common health problems and provides employees with convenient healthcare resources to encourage them to seek medical attention and promote health care knowledge.

To protect employee privacy, all records of health checkup data are stored in locked file-cabinets in the physical consultation rooms. Electronic health checkup data is stored in encrypted folders by factory nurses with privilege control.

Employees are the most valuable assets of the Company and helping employees to resist and relieve stress is as important as pursuing high performance. In an environment where high performance and benefit are a first priority, the goals of an organization are set to increase the work performance as well as the satisfaction of the employees, enhance their commitment to the organization, reduce their willingness to quit, and realize a final vision of the organization in sustainable development.