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Stakeholder Identification
Process of Stakeholder Identification：
STEP1 Identify
8 types of stakeholders were identified preliminarily through departmental interviews and identification
STEP2 Analyze
According to the 5 principles of the AA1000 Stakeholder Engagement Standard (SES) responsibility, influence, dependency, tension, and diverse perspectives, Stakeholder Identification Questionnaires were distributed to departments
STEP3 Determine
The aforesaid 8 types of stakeholders were simplified to 6 types of key stakeholders which in order were customers, competent authorities, employees, suppliers, investors and banks, and classification societies
Identification of Material Sustainability Topics
Identification of Material Sustainability Topics Process：
STEP1
Collect sustainability issues
23 material sustainability issues were derived from the disclosure requirements of international sustainability regulations and standards (GRI Standards, shipping industry guidance in the SASB Standards, SDGs, TCFD, etc.), sustainability investment ratings (DJSI, MSCI, CDP), the Science Based Targets initiative (SBTi), and the International Maritime Organization (IMO).
23 material sustainability issues were derived from the disclosure requirements of international sustainability regulations and standards (GRI Standards, shipping industry guidance in the SASB Standards, SDGs, TCFD, etc.), sustainability investment ratings (DJSI, MSCI, CDP), the Science Based Targets initiative (SBTi), and the International Maritime Organization (IMO).
STEP2
Identify actual/potential significant impacts
In the 34 valid survey questionnaires from the departments of Yang Ming, the departments were tasked with adhering to the principle of double materiality and assessing the actual/potential positive and negative impacts of the 23 sustainability issues on the economy, environment and human rights (society) and their probability of occurrence based on the Company’s operating activities and business relationships, and then rate the issues from 1 to 5. After the questionnaire results were organized, the issues were distributed based on their positiveness/negativeness. Lists of sustainability issues having positive or negative significant impacts with a total score of 10 or higher for the significance of their positive impacts or a total score of 15 or higher for the significance of their negative impacts were generated.
In the 34 valid survey questionnaires from the departments of Yang Ming, the departments were tasked with adhering to the principle of double materiality and assessing the actual/potential positive and negative impacts of the 23 sustainability issues on the economy, environment and human rights (society) and their probability of occurrence based on the Company’s operating activities and business relationships, and then rate the issues from 1 to 5. After the questionnaire results were organized, the issues were distributed based on their positiveness/negativeness. Lists of sustainability issues having positive or negative significant impacts with a total score of 10 or higher for the significance of their positive impacts or a total score of 15 or higher for the significance of their negative impacts were generated.
STEP3
Take into account the opinions of stakeholders and respond to the expectations of different sectors Yang Ming has put focus on the opinions of stakeholders. To ensure that the Company is able to respond to different stakeholders in an accurate and inclusive manner, we distributed and received 338 valid questionnaires for the issues of stakeholders’ concern this year, of which 331 were completed by the top 6 types of stakeholders were used to identify 7 sustainability issues of their concern with a total score of 3.5 or higher for the level of concern.
STEP4
Determine a list of significant material topics to be responded to in a prioritized manner Yang Ming’s Sustainability Working Group reviewed the results in Steps 2 and 3 and included “climate change governance strategies” according to the advice from the management team and external experts. A total of 13 sustainability issues were selected as the material topics for this year. The response strategies, short-term, medium-term and long-term goals, performance and outcomes, and management approaches for each topic are described in compliance with the reporting requirements for the respective topics in this Report.
MATERIALITY ISSUES
Corporate governance and integrity management
Management strategies and operational performance
Legal compliance
Risk management
Implementation and performance of sustainability strategies
Information security and customer privacy protection
Digital transformation
Supply chain management
Navigation and transportation safety
Customer service quality and satisfaction
R&D and investment in low-carbon technologies
Climate change governance strategies
Greenhouse gas emissions
Energy resources use and consumption
Wastewater/sewage discharge management
Biodiversity
Waste disposal and ship demolition and recycling
Occupational safety and health
Employee compensation and benefits
Talent recruitment and cultivation
Labor rights
Government-industry-academia collaboration and international participation
Community care and social welfare activities
MATERIAL ISSUES
Yang Ming is well aware that in making positive contributions to sustainable development, negative impacts may be generated in operating activities and acknowledges that the positive and negative impacts cannot be offset by each other. Hence, in reporting the sustainability topics, relevant responsible units once again reviewed the actual/potential positive or negative impacts of the topics from the perspective of actual implementation to further develop management approaches for the material topics.
01 Management strategies and operational performance
GRI Topic
- GRI 201 Economic Performance
SASB Index
- TR-MT-000.B
- TR-MT-000.C
- TR-MT-000.D
- TR-MT-000.E
- TR-MT-000.F
- TR-MT-000.G
Significance to Yang Ming
- Stable and flexible management strategies are an essential factor for the Company to continue as a going concern and seek stable profits.
Impact Description
- A decrease in the activity level of the shipping market will lead to poor management performance, indirectly affecting customers’ loading willingness and reducing service quality. Well-developed profitable management strategies can help stabilize and reinforce the Company’s financial structure and offer customers at home and abroad stable and high-quality services, thereby creating positive and circular economic impacts.
Management Approach
- Continuously reinforce the existing market and route niches.
- Seize opportunities for developing new markets.
- Plan service route adjustments and ship deployment to ensure sustainable development.
Evaluation Mechanism
- A performance review meeting is held regularly every month according to the internal assignments of authority. Based on the operating status, meetings are held from time to time to discuss route adjustments, flexibly review the operating status at any time, and react accordingly when necessary.
Management Results in 2022
- 31 THE Alliance routes in total (including 3 routes jointly operated with non-THE Alliance carriers).
- The total number of available vessels was slightly increased to 260, with a total shipping capacity of over 2.9 million TEUs. There were 101 sailings per week. A total of 7 additional sailings were added, including 1 Far East-USEC sailing; 3 Far East-Northwest US sailings, and 3 Far East-Middle East/Red Sea sailings.
- A project team was formed to formulate strategies for investment in key industries and green energy industries.
Responsible Sustainable Operation Strategy Division
- Customer Service Division
Corresponding Chapter
- Preface - About Yang Ming
02 Corporate governance and integrity management
GRI Topic
- GRI 2 General Disclosures
- GRI 205 Anti-corruption
- GRI 206 Anti-competitive Behavior
SASB Index
- TR-MT-510a.1
- TR-MT-510a.2
Significance to Yang Ming
- Having a sound governance structure and corporate integrity culture is an important management policy of the Company.
Impact Description
- The Company considers good system operations as the foundation of stable business operations, values integrity management, and complies with laws and regulations. Yang Ming has a good reputation and strives to avoid fraud or competition law violations to prevent the Company from shouldering related responsibilities/suffering reputation damages. The Company’s internal management and business activities strictly comply with the Ethical Corporate Management Best Practice Principles, resulting in positive impacts on governance and economic activities.
Management Approach
- External independent professional agencies are commissioned to assess the performance of the Board of Directors regularly and receive a professional and objective inspection report. The Company also actively participates in important evaluations at home and abroad to not only gain a good reputation, but also review the internal procedures, leading to positive impacts on the Company’s reputation and economic operations. For integrity management, in addition to requesting compliance with the “Ethical Corporate Management Best Practice Principles,” we also promote the Company’s compliance with the European Union Competition Law, the US’s Antitrust Laws, China’s Anti-Monopoly Law, Taiwan’s Fair Trade Act and other competition laws related to the Company’s business and pay attention to and abide by the regulatory measures of competent authorities for the shipping market to make sure that the Company’s operations are in compliance with the related laws and regulations.
Evaluation Mechanism
- The “Declaration System for Entertainment Invitations and Received Gifts of Value” has been implemented. A propaganda session is held every quarter to request employees to declare entertainment invitations and any received gifts of value exceeding a certain amount on the designated system.
- At least 3 compliance education and training sessions and tests are organized, e.g. on preventing insider trading and propagating the Personal Data Protection Act, competition laws, “Codes of Ethical Conduct”, “Ethical Corporate Management Best Practice Principles”, “Procedures for Ethical Management and Guidelines for Conduct”.
- An internal audit is conducted by the Audit Department every year.
Management Results in 2022
- In 2022, the performance of the Board of Directors and functional committees was assessed internally. The assessment results and the improvement directions and targets that could be implemented continuously were reported to the Board of Directors.
- In October 2022, the members of the 1st Risk Management Committee were designated to ensure a sound corporate governance system and enhance the supervisory and risk management functions of the Board of Directors.
The Company’s “Codes of Ethical Conduct”, “Ethical Corporate Management Best Practice Principles”, and “Procedures for Ethical Management and Guidelines for Conduct” were amended and submitted to the Board of Directors for approval. - The Company’s amended Procedures for Handling Material Inside Information were approved by the Board of Directors and disclosed on the Company’s website.
- We have maintained the rights and interests of shareholders and enhanced information transparency:
- In terms of holding an investor conference every quarter and publishing major information in English in real-time, the achievement rate was 100%.
- The annual general meeting was held in a physical manner, with video conferencing as an option for participants.
- A total of 8 Corporate Governance and Integrity Division meetings were convened.
- The “Codes of Ethical Conduct,” “Ethical Corporate Management Best Practice Principles,” “Procedures for Ethical Management and Guidelines for Conduct,” and “competition laws” were communicated to all onshore employees of the Company through online education and training, participated by 1,478 and 1,470 people, with a test pass rate of 95.91% and 95.45%, respectively.
- The establishment of the Procurement Portal was promoted. Registration was open to suppliers in Phase 1.
- 1 auditor received an international audit certificate.
Responsible Sustainable Operation Strategy Division
- Corporate Governance and Integrity Division
Corresponding Chapter
- CH2 Stable Navigation - Corporate Governance and Resilient Operations
03 Occupational safety and health
GRI Topic
- GRI 403 Occupational Health and Safety
SASB Index
- TR-MT-320a.1
- TR-MT-540a.1
Significance to Yang Ming
- Introducing and implementing occupational safety and health management is not only the Company’s commitment to the employees, but also an essential factor for the Company to continue as a going concern.
Impact Description
- Yang Ming attaches great importance to the occupational safety issues faced by all employees. For safety and occupational accidents in the workplace, hazard identification and risk assessment are carried out to reduce potentially dangerous incidents and create a good and safe employment environment, thereby delivering positive impacts on the employees. For violations of laws and regulations related to occupational safety, punishments will be imposed or lawsuits will be filed, damaging the Company’s reputation.
Management Approach
- Conduct occupational safety and health exercises and training to ensure no occurrence of serious accidental injuries or death attributable to the Company.
- Enhance health care for seafarers, upgrade remote medical equipment, and promote the mental and physical health of seafarers.
- Implement e-health management, launch the four programs under the Occupational Safety and Health Act, and conduct the statistical analysis of health checkup data to continuously improve the efficiency and quality of employee health management.
- Remain accredited as a healthy workplace and an iSports enterprise.
- Constantly enhance pandemic prevention and response measures to prevent personnel infection and ensure the Company’s normal operations.
Evaluation Mechanism
- The Company has an occupational safety mailbox in place. No complaints were received in 2022.
Management Results in 2022
- We have implemented workplace health management and health promotion on a continuous basis and stayed compliant with the requirements and standards of the Healthy Workplace Accreditation.
- EAPs have been promoted in workplaces. This year, 7 campaigns were organized for onshore personnel: 3 at the headquarters in Cidu, 2 at the Taiwan Business Department, and 2 at the Taichung Branch, and 1 campaign was organized for onboard personnel.
- 5 “health checkup briefing sessions” were held for the annual health checkup, participated by 190 people.
- Onshore personnel have been provided with health checkup frequencies better than those required by law, namely once per year for personnel over 40 years old and once per 2 years for those below 40 years old.
- In response to the pandemic in Taiwan, we organized 1 online briefing session for the “instructions for rapid test kits” as well as 2 online briefing sessions for “pandemic prevention propaganda” and sent 12 telegrams for pandemic prevention. For employee care, pandemic care packages were provided for infected employees. A total of 635 employees submitted a request in 2022.
- Occupational safety education and training: 3 occupational safety education and training sessions were organized for new employees. Firefighting exercises were performed at workplaces, participated by 314 employees in total. A total of 34 people received first-aider retraining. For general personnel safety and health training, 3 online campaigns themed around pandemic prevention were held, with over 1,500 participants.
- 4 education and training sessions were organized for 26 new seafarers. A total of 587 seafarers received pre-onboard safety and health training.
- Class 3 occupational safety and health manager training was arranged for 75 officers throughout the year in order to enhance their occupational safety and health management competence.
- A company sports day was organized in December, with 1,465 participants from Yang Ming Group (including retired employees).
Responsible Sustainable Operation Strategy Division
- Employee Care and Social Commitment Division
Corresponding Chapter
- CH5 Talent Navigation – Workplace Well-Being for Diverse Development.
04 Legal compliance
GRI Topic
- GRI 2 General Disclosures, GRI 201 Economic Performance
SASB Index
- TR-MT-540a.2
- TR-MT-540a.3
Significance to Yang Ming
- Compliance with laws and regulations is fundamental to operations. The Company must create a comprehensive mechanism to ensure total compliance.
Impact Description
- The Company takes legal compliance seriously and has all services compliant with related laws and regulations to reduce operational risks. Customers trust the Company and believe that the Company’s operations are compliant with laws and regulations, which thus gives the Company more chances to offer transportation services and creates positive economic impacts. In case of legal compliance issues that lead to the customers’ doubt about the Company’s services, their willingness to choose the Company’s services will be reduced.
Management Approach
- Include the Company’s legal compliance clause in external contracts to declare the Company’s compliance policy and request suppliers to comply with the Company relevant policies.
- Remind responsible units to keep an eye on competition laws, personal data protection, anti-money laundry, economic sanctions, and embargos in reviewing contracts and other legal documents and handling the Group’s matters and assist them in clarifying and identifying legal risks to avoid violations of related laws and regulations.
- Carry out education/training and propaganda on compliance with related regulations from time to time.
Evaluation Mechanism
- “Legal Compliance Survey” forms are sent to related units. They are required to complete the forms based on the actual legal compliance of their business activities during a specific period.
- The Company has an independent director mailbox (ymtarzantang88@hibox.biz) in place, which can only be accessed by Audit Committee members or the personnel designated thereby. For any suggestions helpful for the Company’s management and development, opinions on the Company’s management status and financial position or the major decisions involving the Company’s interests, and malpractice incidents, stakeholders may submit suggestions and complaints through this channel.
- The Company also offers a whistleblowing mailbox (conduct@yangming.com) to which only the Chief Audit Executive and the personnel designated thereby have limited access. If stakeholders find any conduct that is illegal, unethical, or a breach of fiduciary duty by the directors, managers, employees, and appointees of the Company and the affiliates thereof, they may report such conduct to the Company.
Management Results in 2022
- Online courses and tests on personal data protection laws and regulations as well as competition laws were organized. 1,470 people passed the tests, with a pass rate of 95.33% and 95.45%, respectively.
- Online education, training, propaganda and tests on the “Codes of Ethical Conduct,” “Ethical Corporate Management Best Practice Principles,” , “Procedures for Ethical Management and Guidelines for Conduct,” and “competition laws” were provided and participated by 1,478 and 1,470 people, with a test pass rate of 95.91% and 95.45%, respectively.
Responsible Sustainable Operation Strategy Division
- Corporate Governance and Integrity Division
Corresponding Chapter
- CH2 Stable Navigation - Corporate Governance and Resilient Operations
05 Risk management
GRI Topic
- GRI 2 General Disclosures
SASB Index
- N/A
Significance to Yang Ming
- Risk management allows the Company to fully identify and control possible risks in the operations, enabling the Company to give timely responses to changes in external environments.
Impact Description
- Risk identification is the strategic foundation of corporate operations. If the possible potential risks faced by the Company are not fully identified, the Company’s operations will be affected, thereby causing negative impacts on society, the economy and the environment. The Company values risk management procedures and conducts appropriate risk management in response to business development in order to improve the Company’s ability to identify and control risks and enhance the flexible management capability, delivering positive impacts on the Company’s corporate image, business income, and customer relationships.
Management Approach
- Assess the Group’s risks periodically, integrate the business-related risks to units in project proposals when necessary or assess the overall current industrial economic environment, and summarize the possible potential risks to the Group’s operations in the risk assessment report for the Group.
Evaluation Mechanism
- “Group Risk Assessment” forms are sent regularly to all units. They are required to fill in the forms with the risks that may be involved in the execution of the business activities they are responsible for in a specific period. After determination through risk interviews, an annual risk assessment report is prepared and submitted to the Risk Management Committee. For high-risk items, follow-ups and improvements are performed.
Management Results in 2022
- Risk management education and training were organized, with a total of 128 people participating in courses and 3 training hours.
- A corporate project risk report was prepared for the risk management system projects executed together with external experts.
- 1 risk management education and training section was held, and the lecturer was from the financial risk management sector.
Responsible Sustainable Operation Strategy Division
- Corporate Governance and Integrity Division
Corresponding Chapter
- CH2 Stable Navigation - Corporate Governance and Resilient Operations
06 Employee compensation and benefits
GRI Topic
- GRI 201 Economic Performance, GRI 401 Employment, GRI 402 Labor/Management Relations
SASB Index
- N/A
Significance to Yang Ming
- Offering competitive employee compensation and benefits is one of the Company’s focuses on talent development and can help sharpen the Company’s competitive edge.
Impact Description
- Talent management is a key factor for enterprises to remain competitive in their industries as well as the important foundation of their sustainable business growth. The Company has comprehensive salary and benefits packages in place that can improve the image as an employer, help attract and effectively retain talent, and enhance the Company’s overall competitiveness, thereby creating a positive socioeconomic circle.
Management Approach
- Offer salary policies that are internally consistent with the concept of costs and fair and externally competitive.
Evaluation Mechanism
- Externally: A periodic survey on the job market and the compensation and benefits of other companies in the industry is conducted to compare them with the Company’s current salary system.
- Internally: “Employee Opinion Survey Questionnaires” are sent every two years to understand the suggestions and thoughts of internal employees.
Management Results in 2022
- To facilitate a parent-friendly work environment, the Company’ preschool center was put into operation on August 15, 2022. 1 class with childcare facilities was first available for access by employees’ children and grandchildren aged 2 to 6, allowing the employees to have children without worry while maintaining a work-family balance.
- The company provides onshore employees with a frequency of health checkups that is superior to the OHS law’s requirements. The health checkup allowance for each onshore employee was increased to NT$10,000 and one day of official leave was granted.
- Our fleet received a Maritime Labour Certificate and a Declaration of Maritime Labour Compliance for compliance with the requirements of the Maritime Labour Convention, 2006. In 2022, 31 own vessels underwent an external MLC audit, and the results showed that all the vessels were compliant with the MLC.
- The human rights policy was communicated to all onshore employees of the Company through online education and training, with 1,428 people completing the courses and a test pass rate of up to 92.5%, to raise the employees’ awareness of human rights protection.
- 1,407 people completed the online “gender equality and sexual harassment prevention” propaganda course, with a test pass rate of 91.13%.
- The turnover rate in 2022 was reduced by 1.05% in comparison to that in 2021.
- 4 questionnaire surveys were conducted during large-scale seafarer training: YM Fleet Mess Management Survey, YM Seafarer Complaint Channel Survey, Survey on the Causes of YM’s Common Deficiencies, and Survey on YM’s PMS Use, and improvement measures were proposed.
- We set up a mailbox dedicated for seafarers: ym5134@yangming.com and a sexual harassment whistleblowing mailbox: ym0885@yangming.com. The latter can only be accessed by the Chief Marine Technology Officer and the Head of the Maritime Department. A sexual harassment whistleblowing hotline was also provided for the seafarers to submit suggestions and complaints.
Responsible Sustainable Operation Strategy Division
- Employee Care and Social Commitment Division
Corresponding Chapter
- CH5 Talent Navigation – Workplace Well-Being for Diverse Development
07 Implementation and performance of sustainability strategies
GRI Topic
- Self-defined
SASB Index
- N/A
Significance to Yang Ming
- Developing and actively implementing sustainability strategies is the cornerstone of the Company’s sustainable development.
Impact Description
- Yang Ming pays attention to international sustainability trends in the hope of implementing responsible business conduct by living up to sustainability strategies, including economic activities, environmental protection, and social practice. Through participation in external awards and the receipt of sustainability awards, we review our sustainability efforts and boost corporate competitiveness, actively creating positive social impacts. In case of poor sustainability performance or lack of disclosure transparency resulting in bad evaluation results, the Company may lose corporate competitiveness, leading to a negative economic impact on the corporate operations.
Management Approach
- The Sustainable Operation Strategy Team convenes meetings on an annual basis. Through interdepartmental meetings, the Company may focus on the UN’s SDGs with the most significant impact on container transport processes and services. “Provision of excellent shipping services to fulfill the commitment to serving customers,” “energy saving and emissions reduction to achieve environmental sustainability,” “strengthening corporate governance and integrity management,” “employee care and talent cultivation,” and “enhancing social participation to give back to society” are Yang Ming’s sustainable development strategies. Division supervisors review the implementation and performance of the sustainability strategies and designate responsible units to set and carry out short-term/medium-term/long-term goals with respect to stakeholders’ concerns and the significant issues related to the respective policies to demonstrate the Company’s commitments and determination. The implementation goals are reviewed every year from the perspective of corporate governance, environmental protection, and social co-prosperity, and different projects are developed to gradually promote sustainable operations. The implementation and performance of the Company’s sustainability strategies must be reported to the Board of Directors for review at least once a year for the purpose of supervision of the Company’s promotion of sustainable development.
Evaluation Mechanism
- Meetings of the supervisors of divisions subordinate to the Sustainable Operation Strategy Team are held from time to time every year to review their implementation performance. The Public Affairs Department reports the issues of stakeholders’ concern, the material issues analyzed, the implementation in the previous year, and the future short-term/medium-term/long-term goals set to the Board of Directors for the purpose of its supervision of the Company’s promotion and implementation of sustainable development.
Management Results in 2022
- A sustainability website in Chinese was set up.
- We completed the CDP climate questionnaire and received a B rating.
- We opened a green fixed deposit with DBS Bank.
- For the awards won, please refer to Yang Ming’s Recognitions in 2022.
Responsible Sustainable Operation Strategy Division
- Corporate Governance and Integrity Division
Corresponding Chapter
- CH1 Strategic Blueprint - Sustainable Operation Strategies
08 Navigation and transportation safety
GRI Topic
- GRI 416 Customer Health and Safety
SASB Index
- N/A
Significance to Yang Ming
- Navigation and transportation safety is the Company’s commitment to its employees and customers.
Impact Description
- We make good use of external resources and expert systems as well as regular weather routing to improve vessel shipping efficiency and ensure navigation and transportation safety, creating stable revenue. A new generation of stowage planning software has also been introduced to enhance hull and cargo safety, which will save the costs for cargo re-stow and canal passage. Failure to control navigation and transportation safety may cause great economic losses, loss of customer trust, and other risks.
Management Approach
- Use a comprehensive information system (SMART SHIP CENTER) for seafarer and vessel condition evaluation.
- Rate sustainability issues by real-time digital data , such as CII monitoring..
- Provide practical e-learning courses (including on information security and labor safety) in various additional types of physical courses for personnel education and training.
Evaluation Mechanism
- At least 6 centralized system-based fleet checks are performed a year.
- Regular departmental meetings are held to give updates on the progress of software development. The Chief Logistics Officer, vice presidents, and deputy vice presidents attend the meetings to review the progress and corrective actions against issues.
Management Results in 2022
- Smart fleet management: Through 5G systems combined with satellite communication and satellite-based ship positioning, the weather integration system, fleet management platforms (including the Fleet Management Module and Seafarer Management Module, Green Shipping Module, and LINE Boardroom), vessel supervision app and platform, digital alert system, etc., Yang Ming could better promote smooth transportation services and navigation and transportation safety.
- Customized modifications were made to the stowage planning software for the YML. The stowage planning procedure has been controlled to improve stowage safety and reduce the probability of mis-operation.
- In 2022, 24 bills of lading with undeclared dangerous cargo were identified. The Company organized 2 education and training sessions on dangerous cargo, prepared instructions for special cargo operations, provided e-learning courses, and used Yammer as a forum on the intranet to share professional knowledge and regulations.
- In 2022, we had no containers lost at sea or collapsing, no vessels grounded, and no major vessel failures and major oil pollution events.
Responsible Sustainable Operation Strategy Division
- Customer Service Division
Corresponding Chapter
- 4.1 Navigation and Transportation Safety
- 4.2.1 Smart Ship Center(War Room)
09 Information security and customer privacy protection
GRI Topic
- GRI 418 Customer Privacy
SASB Index
- N/A
Significance to Yang Ming
- Protecting customer privacy is the Company’s commitment to customers. Implementing information security can help increase business resilience.
Impact Description
- Yang Ming takes information security and customer privacy protection seriously. We ensure information security through comprehensive systems and effective monitoring in accordance with laws and regulations. ISO 27001 has also been introduced to continuously enhance internal management with high standards, boost the customers’ trust in the Company, and improve the Company’s image for more investment, financing and service opportunities, bringing positive economic impacts. In the event of information leakage, in addition to a penalty, the Company may suffer image damage, causing harm to the Company’s reputation among external stakeholders and thereby leading to a customer loss.
Management Approach
In an effort to utilize information technology to support the Group’s corporate activities, create a vision where the Group can improve its management competitiveness with information, and protect the operation of the global information services from internal or external intentional or accidental threats and damages that expose business information to falsification, leakage, damage or loss risks, an information security policy has been established to use information technology to integrate risk control mechanisms and ensure the Group’s overall management competitiveness.
Information security objectives have also been set:
Information security objectives have also been set:
- Ensure the correctness and integrity of information related to the Company’s business to enhance administrative efficiency and quality.
- Ensure the availability of information equipment related to the Company’s business to meet the requirements for information and business operations.
- Ensure the confidentiality of information related to the Company’s business to protect trade secrets and the privacy of stakeholders.
- Comply with national laws and regulations as well as security standards to achieve the goal of business continuity.
Moreover, from the overall perspective of Company’s strategic risk management, we have built and maintained an information security system and established standards for information risk assessment, with the Company’s operations, laws or regulatory requirements, and the Company’s security obligations under relevant contracts taken into consideration. The publication of the developed and amended information security policy is subject to the approval of the Chairman. Employees who breach the information security policy will be reported to the Human Resource Committee for disciplinary action.
Evaluation Mechanism
- The implementation of information security control is reported to the Board of Directors quarterly.
- APT information security health checks are conducted twice a year.
Management Results in 2022
- The testing, development and adjustment of the contract management system were completed.
- We conducted an ISO 27001 external audit and have kept the certificate valid.
- The Company designated a chief information security officer and set up a dedicated unit, the Cyber Security Office, responsible for formulating information security strategies, conducting information monitoring, supervision, management and tracking, and promoting information security monitoring, e.g., the increase of password strength, MFA, Zero Trust, further data encryption, etc.
- Yang Ming has enhanced the fleet’s information security protection capability. An API was used to integrate with the information security monitoring system so that the current information security status can be checked on a unified interface. Any personnel violating information security regulations is recorded on the seafarer management interface of the Smart Ship Center (Boardroom). Personnel access has been deeply integrated with Yang Ming’s Microsoft AD. Departing employees will no longer be able to log in and their access will be limited to the Company’s internal computers.
Responsible Sustainable Operation Strategy Division
- Customer Service Division
Corresponding Chapter
- CH4 Going Digital - Smart Operations Creating Sustainable Win-win Situations
10 Customer service quality and satisfaction
GRI Topic
- Self-defined
SASB Index
- N/A
Significance to Yang Ming
- Offering high-quality services is the Company’s commitment to customers and can help improve the Company’s competitiveness.
Impact Description
- As Yang Ming takes seriously the comments and suggestions of customers, Yang Ming understands their needs through different channels in the hope of delivering more benefits to them. We also actively communicate and properly handle complaints from our customers with the aim of offering higher quality services to promote a good social circle and drive positive economic impacts. Improper complaint handling can cause further customer complaints and customer losses, damaging the corporate reputation.
Management Approach
- Conduct a customer satisfaction survey every two years.
- Provide a customer service mailbox on the official website for customers’ complaints and inquiries.
Evaluation Mechanism
- Customers may file complaints on the official website. Once the complaints are established, relevant units will handle and reply to them in a project-based manner until they are closed.
Management Results in 2022
- The overall average score of the global customer satisfaction survey in 2022 was 88.63, showing a 3.27% increase in comparison to that in 2020, which was 85.82.
- The "My Ocean" system went live and a new version of the app was released.
- The new version of the app is equipped with more powerful functions and integrated with AI, including share tracking, voice assistance, Apple Watch, etc.
- The DCSA TnT platform with subscription and back-end inquiry functions for customers and the DCSA JIT back-end system for subscription management for partners went live.
- The Company developed online manifest write-off services in the container terminal in Keelung and obtained an invention patent for the “Container Terminal Pick-up Method, Container Terminal Computer, and Pick-up Information System” (I792933).
Responsible Sustainable Operation Strategy Division
- Customer Service Division
Corresponding Chapter
- CH4 Going Digital - Smart Operations Creating Sustainable Win-win Situations
11 R&D and investment in low-carbon technologies
GRI Topic
- Self-defined
SASB Index
- N/A
Significance to Yang Ming
- Performing long-term low-carbon transformation and deployment in response to climate change risks and opportunities is one of Yang Ming’s future major operational policies.
Impact Description
- To cope with the escalated supervisory actions of the IMO and other competent authorities, e.g., low-carbon emission environmental protection regulations and CII, the Company must make route adjustments and build more management platforms for supervision, otherwise penalty or shipping suspension may be imposed, causing serious negative economic impacts on the Company’s operations. The Company has invested resources in the research and evaluation of low-carbon technologies suitable for the Company with various sectors and improved technicians’ knowledge and skills for low-carbon energy for vessels and the monitoring of the vessel operation efficiency and carbon intensity. We hope that by doing so, economic and environmental losses can be reduced through the real-time monitoring and analysis of efficiency data for timely warning and improvement, creating positive impacts.
Management Approach
- Form a dedicated team to review each route’s compliance and, in case of incompliance, discuss countermeasures with carrier allies.
- Set up an LNG team with dedicated personnel responsible for LNG projects and provide relevant training courses to develop technical manpower.
- Assess the need for commissioning shipbuilding supervisors and carry out the commission process.
- Complete seafarer training as well as LNG fuel supply deployment and planning through cross-departmental coordination.
- Form a team to develop the Phase 2 functions of the Big Data Boardroom system for vessels.
- Formulate a master plan for recruitment as well as industry-academia programs to develop seafarer manpower.
Evaluation Mechanism
- Progress is reported to the Board of Directors regularly.
- Project meetings are held periodically to report and communicate on project work methods, work progress, and operating procedures and to review and assess project execution problems and efficiency.
- The Sustainable Operation Strategy Team reports implementation results every year, including the issues of stakeholders’ concern, the material issues analyzed, the implementation in the previous year, and set future short-term/medium-term/long-term goals.
Management Results in 2022
- A project team was formed to formulate strategies for investment in key industries and green energy industries.
- The CII Task Force was formed.
- The specifications for the project of the construction of new 15,000 TEU LNG dual-fuel container vessels were outlined.
- 8 low-carbon fuel training courses from classification societies were completed.
- The planning of training courses for new energy and the IGF CODE was completed.
- The project to develop the Phase 1 functions of the Big Data Smart Ship Center system for vessels was completed.
- A hybrid electric vehicle was purchased as a company car.
- For the electrification of the machines in the Yang Ming Keelung Container Terminal, 2 stackers for loaded and empty containers and 3 gantry cranes were replaced.
Responsible Sustainable Operation Strategy Division
- Customer Service Division
- Environmental Sustainability Division
Corresponding Chapter
- CH3 Green and Sustainable Shipping - Operating Strategies for Environmental Sustainability
12 Energy resources use and consumption
GRI Topic
- GRI 302 Energy
- GRI 305 Emissions
SASB Index
- TR-MT-110a.3
- TR-MT-110a.4
Significance to Yang Ming
- Complying with the carbon reduction requirements of international laws and coping with challenges in achieving net zero emissions in the shipping sector are Yang Ming’s long-term goals.
Impact Description
- Yang Ming attaches great importance to the strategies for the use of energy, water, resources and materials in the operations in compliance with international environmental protection laws and regulations. The Company is dedicated to promoting an operational model that can facilitate energy efficiency in the hope of attracting green corporate customers or partners and boosting the Company’s reputation. As related laws and regulations become stricter, the high carbon taxes in the international community as well as green vessels and fuels may increase operating costs. Failure to comply with international laws and regulations may face the Company with operational disruption or interruption risks.
Management Approach
- The Company is a board member of the WSC and actively engages in matters related to international shipping. Relevant councils in the WSC are invited to attend pre-meetings about the trends in international environmental protection laws and regulations regularly to give opinions, reports and action plans, continuing efforts in energy conservation, carbon reduction, and the planning of green energy use.
Evaluation Mechanism
- The Company’s relevant departments are assisted in information communication and report organization in the WSC Environment &Climate Council.
Management Results in 2022
- The carbon emissions in 2022 were 40.21 g/TEU*km. The following measures were implemented to improve fuel-saving performance, thereby reducing carbon emissions:
- Promoting the Carbon Intensity Indicator (CII) rating in accordance with SEEMP PART III.
- Conducting ship maintenance, monitoring hull efficiency, and performing hull cleaning when needed to reduce hull roughness.
- Utilizing systems and the services provided by Weathernews Inc. (WNI) to monitor vessels’ routing and fuel consumption and to keep track of improvements in case of performance abnormalities.
- Five 11,000TEU container vessels were delivered into Yang Ming’s Pacific southwest and Pacific northwest routes.
- Conducting the propeller polish for 14 long-term chartered ships with abnormal fuel consumption to improve their fuel consumption.
- Reducing the fuel consumption by 356,492 tons or 21.5% through continuous shipping schedule control.
- We prepared a report and outlined specifications for the analysis of fuel selection for the new ship deployment project.
- Yang Ming joined the LR-Silk Alliance, Getting To Zero Coalition initiative, Society for Gas as a Marine Fuel (SGMF), Ship Recycling Transparency Initiative (SRTI), and classification societies to collect information on relevant environmental protection laws and regulations as well as next generation fuels.
- The Company has updated daily shipping news and the YM Digital Library that offers the borrowing of periodicals to share international trends/laws and regulations and carbon reduction goals and measures.
- 14 vessels underwent a regular dry duck maintenance, where the hulls were pained with eco-friendly low-friction antifouling coating to protect the outer panels from marine organisms and thereby avoid increasing fuel consumption.
- Water-based paints have been used for newly-built containers, reducing a total of 2,657 tons of VOCs (volatile organic compounds). The IP paints of the hulls in the entire fleet were replaced with (low-VOC) paints.
- Yang Ming obtained an invention patent for the “METHOD FOR PREDICTING FUEL CONSUMPTION OF SHIP” (I792418) in collaboration with National Cheng Kung University.
Responsible Sustainable Operation Strategy Division
- Environmental Sustainability Division
Corresponding Chapter
- CH3 Green and Sustainable Shipping - Operating Strategies for Environmental Sustainability
13 Climate change governance strategies
GRI Topic
- GRI 201 Economic Performance
SASB Index
- N/A
Significance to Yang Ming
- Climate change governance strategies allow the Company to identify possible physical and transformation risks in the operations, enabling the Company to give timely responses to changes in external environments.
Impact Description
- Failure to fully disclose climate change-related risks will lead to the incomplete disclosure of the Company’s information and affect the Company’s evaluation performance and corporate image. If any unit fails to identify climate change risks, the possible resulting impact on the Company’s operations may result in negative economic and environmental impacts. On the other hand, if climate-related risks and opportunities are well-identified, the Company’s ability to identify and control risks and to control potential long-term risks may be improved and enhanced to boost the Company’s operational flexibility and seize the climate-related opportunities, which are expected to benefit the future economy and environment.
Management Approach
- Climate change-related risks are included in the Company’s risk management policy. The Risk Control Office and Sustainable Operation Strategy Team regularly assess the risks and opportunities related to climate change, report the assessment results to the Risk Management Committee and Board of Directors after the risk assessment procedure for the Group is completed, keep track of high-risk items on a quarterly basis and report the improvement results to the Risk Management Committee and Board of Directors.
Evaluation Mechanism
- TCFD and CDP projects, along with the R&D of low-carbon technologies and investment planning, are implemented on an ongoing basis. The climate-related risks and opportunities in the Company’s operations are reviewed regularly.
Management Results in 2022
- The Company signed the TCFD initiative in support and conducted a financial analysis of climate-related opportunities and risks for the first time.
Responsible Sustainable Operation Strategy Division
- Corporate Governance and Integrity Division
Corresponding Chapter
- CH2 Stable Navigation - Corporate Governance and Resilient Operations