About This Report

Editorial Policy

The 2016 Corporate Social Responsibility Report is the fifth issue of the annual report published by the Taipei Financial Center Corporation (hereinafter referred to as TFCC or TAIPEI 101 in this report). This edition includes both Chinese and English versions and a dedicated corporate social responsibility website. Through the publication of this report, we hope to provide a transparent disclosure of our efforts and achievements in economic, social and envir onmental aspects to stakeholders. The link t o TFCC's dedicated corporate social r esponsibility is: http://csr.taipei-101.com.tw

Reporting Period

The report covers TFCC's corporate information regarding corporate social responsibility policy, material issues, responses and ac tions for the period ending 2016 ( January 1, 2016 to December 31, 2016).

Reporting Frequency

TFCC publishes a corporate social responsibility report on an annual basis. The last issue (2015) was published in August 2016. The next issue (2017) will be issued in A ugust 2018.

Boundary of the Report

The report covers the economic, social and environmental performances of three main business units of TFCC: TAIPEI 101 Tower, TAIPEI 101 Mall and TAIPEI 101 Observatory, with a portion of the information disclosure relating to external entities (i. e. tenants, suppliers and customers).

Reporting Reference

This report adopts the framework of Global Reporting Initiative (GRI) G4 Sustainability Reporting Guidelines as well as the GRI G4 Construction and Real Estate Sector Guidance. The GRI Index has been appended at the end of this r eport for reference purposes.


If you have any questions regarding the report, please contact us at  Taipei Financial Cent er Corporation – Corporate Sustainable Development Team

Address: 59F, No. 7, Sec tion 5, Xinyi R oad, Taipei City 110

Telephone: +886 2 8101 8813


Reliability of Reported Information

The report has been compiled in accordance with the "core" option of the GRI G4 Sustainability Reporting Guidelines. TAIPEI 101 has engaged KPMG to conduct an independent limited assurance on selected subject matter information in accordance with A ssurance Standards Gazette No.1 of the Republic of China: Assurance Engagements other than Audits or Reviews of Historical Financial Information. The Limited Assurance Report can be found at the end of this report. Financial figures from the operating performance section have been cited from TAIPEI 101's Financial Statement (audited by accountant); greenhouse gas emission figures have been taken from Opinion Statement assured by an third-party accreditation body.

Theme for the Report - Green Living

TAIPEI 101 has established "Green Tower for All" as the overarching sustainability theme for 2015-2017 in an effort to demonstrate our commitment to become a symbol and beacon for low-carbon emission for the world. In the 2015 CSR Report, we first introduced the theme of our sustainability strategy and our extended definition of "Green", which is applied to the environment and other aspects of sustainability, such as products, society and charity. In 2016, TAIPEI 101 connected such concept to its three major business units each of which is intricately tied to our day-to-day lives, turning the concept of "Green" into actions by incorporating and championing in "Green" in our working, living, shopping and tourism experiences. We aspir e to utilize our influences to inspire people from different backgrounds and origins to shape their green lifestyles, and ther eby creating a sustainable future.

Spirit of Green – Sustainable TAIPEI 101
for glocalized lifestyle
of green-friendly
of a comfortable and safe living environment
for harmonious interaction for all

Stakeholder Communication

TAIPEI 101 has a vast and diverse list of stakeholders. In order to maintain ideal communications and collaborative relationships with different stakeholders, we have referred to the AA1000 Stakeholder Engagement Standards to identify material stakeholders in a systematic approach. In 2013, we called a meeting of all departments and based on five aspects of dependency, influence, tension, responsibility and diverse perspective on TAIPEI 101, we filtered out eight categories of major stakeholders.

Based on its actual operating status, its interaction with various stakeholders and comparisons with benchmark corporations in the industry, TAIPEI 101 reviews and adjusts its stakeholder groups on a yearly basis. In 2014, we added two categories of stakeholders: "office tower/mall tenant" and "community/NGO" and further adjusted the composition of TAIPEI 101's stakeholder groups in 2015 but maintained 10 groups of key stakeholders. For 2016, TAIPEI 101's stakeholder groups remained unchanged from that of 2015.

2016 Stakeholder Groups

We have established various communication channels with different stakeholders. Stakeholders can actively or passively leave comments and requests for us, in order for us to respond to them through corresponding channels.

Communication Channels between TAIPEI 101 and Stakeholders

Online Survey for External Stakeholders

TAIPEI 101 has always worked hard to improve its stakeholder engagement. In order to listen to the voice of more stakeholders, we have designed an online survey for stakeholders in 2017 so that we can reach out to more stakeholder groups. Through the survey, we hope to find out the degree of concern by different stakeholders on various material issues, their primary channels for getting TAIPEI 101's CSR related information, level of satisfaction, opinion on the direction of TAIPEI 101's sustainable development and so forth. TAIPEI FINANCIAL


Materiality Analysis

Contents of this report have been compiled in accordance with the 4th generation (G4) of the guidelines formulated by Global Reporting Initiative (GRI), with emphasis on the consistency between the basic scope of the report and the boundary of consolidated financial statement. The guideline called for descriptions of the company's management policies, status of implementation and relevant performance for material issues of significant impact on economy, society and environment and issues of the primary concerns to stakeholders. The process of material issues identification is summarized as illustrated below.


"TAIPEI 101 Prestige Management Consultant Ltd." has fallen within the organization boundary of the company as spelled out in the principles of consolidated financial statement compilation. The company has 100% ownership of the firm (as a subsidiary of Taipei Financial Center Corporation). Given the fact that the firm conducted no actual management operations in 2016, the subsidiary has been excluded from the boundary of the company's corporate social responsibility report for 2016. The boundary of all non-financial information disclosure contained herein is strictly limited to TAIPEI 101 itself.

The identification of material issues for 2016 has been made based on the materiality matrix from 2015 as the basis for adjustment. We have referred to the latest trends in sustainable development both locally and overseas and gathered data from local and foreign benchmarks of material issues to ensure the materiality of the list, the completeness and coverage of all related stakeholders.


After determining the list of material issues, the ranking of issue materiality was derived through the assessment of these issues' "stakeholders' extent of concern" and "impact on the company's sustainable operations".


After the material issues have been identified and preliminarily prioritized, the President along with other VPs are entrusted with the task of validation before adjustments are made according to the interpretations and suggestions from senior managers. This ensures that the results are duly compliant with the GRI guidelines and the principles of inclusion f or stakeholders.


In the future, we shall strive to achieve deeper under standing and to better respond to stakeholders' needs based on the results of material issue identification in order to ensure better grasp of the impact and the boundary of different issues for TAIPEI 101. For 2016, we shall adopt the same process of identification and re-examine the material issues to ensure that they provide comprehensive coverage of all economic, environmental and social perf ormance for TAIPEI 101 and its affiliated external entities.

Materiality Matrix

Relevant material issues, their importance in the value chain and correspondence with GRI G4 material aspects are presented in the t able below.

Boundaries of Material Issues along the Value Chain



Message from the Chairman

Te-Yu Chou Chairman, Taipei Financial Center Corporation

With the Paris Agreement signed by 195 UNFCCC member nations coming into effect in 2016, the path of sustainable development has guidednations and organizations into proactively pursuing reduction in carbon emissions. In the meantime, the Sustainable Development Goals (SDGs) spearheaded by the United Nations took on greater influence in 2016 and has become the basis for nations and enterprises around the world when setting meaningful goals. TAIPEI 101 takes pride in being a beacon in the torrent of low-carbon transitions; as a response to the global trends in 2016, our aspiration to realize a sustainable future through our own commitments and influences as a benchmark has grown stronger than ever.

Always in pursuit of excellence, TAIPEI 101 has once again set new records in terms of its operational performance in 2016. We have made it our mission and responsibilities to fulfill our vision of "becoming the paradigm of operation and management for super high-rise buildings in the world." both in Taiwan and in the global context. In order to achieve this vision, we have taken the "S.P.I.R.I.T" core value of TAIPEI 101's corporate DNA as the foundation and built upon it to create the central theme of our sustainable strategy – "S.P.I.R.I.T of GREEN". With it, we identified 9 SDGs that are relevant to our core operations as the strategic directions that will enable TAIPEI 101 to become the world's highest platform and exemplar of "Growth, Low-Carbon, Equality and Inclusion".

We at TAIPEI 101 are champions for sustainable business growth as demonstrated by TAIPEI 101's LEED v4 O+M Platinum Recertification in June 2016 with a world record-setting 90 points. TAIPEI 101 has once again proven itself as an active advocate of green building for the whole world; we have also leveraged this achievement to provide a platform for partners and businesses from various sectors to interact and exchange sustainability-related experiences, and to encourage all to place more emphasis on low-carbon measures. In addition, we have hosted the "Smart Cities Smart Buildings" Seminar and launched the TAIPEI 101 Green Building APP that is available in 8 different languages as a collaborative effort between the government, private sector and academia. For the past two years, we have also procured 1.01GWh of green power each year in hopes of broadening TAIPEI 101's influence to call upon other companies to follow suit. Our efforts in adopting and promoting low-carbon operating model have been well received: the Green Leadership accolade of Asia Responsible Entrepreneurship Awards, the National Industrial Innovation Award, CommonWealth Magazine's Excellence in CSR Award and the Environmental Friendly Exemplar Award in the Global Views Monthly Magazine's Corporate Sustainability Award all attest to our effort and determination.

Moving forward, we will continuously expand and deepen our involvement in ESG initiatives thereby promoting sustainability awareness to all individuals and organizations that are connected to TAIPEI 101. We also hope to share our experiences and expertise in operating low-carbon and sustainable supertall building with local and foreign peers in fulfillment of TAIPEI 101 vision to become the new green paradigm of low-carbon transition for the world. We are the Green Tower for All - All for Green!


Message from the President

Shouldering the responsibility of "Presenting Taiwan to the World", TAIPEI 101 has not only established the world's highest charity platform in 2016, but also acquired LEED v4 O+M Platinum rating with the highest score ever awarded by USGBC. Everyone at TAIPEI 101 has worked tirelessly to make the organization the pride of Taiwan on the international stage of sustainable development. Furthermore, TAIPEI 101 has stayed true to its sustainability vision of "Green Tower for All" by proactively incorporating the concept of "Green" (the embodiment of nature, growth, equality and inclusion) in our day-today operations. We strive to create a workplace that is comfortable and safe for all employees, to ensure tourism experiences that are smart and safe, and to support lifestyles that are communal, in order to ensure that business partners, visitors and the general public who come through TAIPEI 101 would be able to enjoy the benefits of Green Living.

Despite changes in the macro environment and fluctuations in the tourism market, TAIPEI 101 managed to deliver outstanding operational performance. In 2016, TFCC's operating revenue totaled NT$ 5.744 billion, exhibiting a YoY increase of NT$ 44 million (1%). With effective control of operating expenditure, our pre-tax profits for 2016 came to NT$ 2.574 billion – an increase of NT$ 121 million compared to the previous year, an equivalent to a 5% growth rate. TAIPEI 101 also achieved a net profit after tax of NT$ 2.137 billion, an increase of NT$ 101 million (5% growth). Moreover, we have adopted higher standards when it comes to our sustainability management; in addition to adjusting our sustainability governance structure and refining the operating model for the Corporate Sustainable Development Team, we have also connected with our tenants and suppliers to work together to realize sustainability. In 2016, the number of new and old tenants signing the corporate social responsibility clause has increased by as much as 116% compared to the previous year. On top of that, we have also completed the construction of our supplier assessment and audit system in hopes of encouraging suppliers to collaborate and boost ESG performance for both ends.

With regards to environmental sustainability, we have endeavored to make TAIPEI 101 a more sustainable green building from inside out through multiple cooperation models. TAIPEI 101 has signed a memorandum of understanding (MOU) with Siemens Ltd. Taiwan to adopt the company's Siemens Navigator – a cloud-based building energy and sustainability platform in order to effectively monitor and analyze the building's energy efficiency. We have also continued to purchase 1.01GWh of green power, allowing TAIPEI 101 to receive the "green purchase in excess of NT$ 5 million" recognition from Taipei City Government and the "Green Power Gratitude Award" from the MOEA for our support for the development of domestic renewable energy. TAIPEI 101 has also collaborated with BMW to set up i-Charging Stations for electric vehicles so that owners of electric vehicles can enjoy a one-stop shop for shopping, free charging and free parking, thereby extending our green concept to our customers. Last but not least, we have leveraged TAIPEI 101's unique height and worked with Taipei City's Department of Environmental Protection and installed PM2.5 detectors on different floors of TAIPEI 101 in order to improve the monitoring of air pollution in Taipei City and contribute to the maintenance of air quality for the city.

TAIPEI 101 has also leveraged its influence in the areas of social charity and cultural promotion. By establishing "the world's highest charity platform", we have created an exchange network enriched with social values that help match social welfare organizations with TAIPEI 101 customers, volunteers and tenants, thereby making the supply and demand of social charity more transparent. In 2016, we collected a total of 1,200 children's books from our tenants and employees through the platform to be donated to five schools and a church in remote areas in hopes of closing the gap of learning between children in urban and rural areas. As for the promotion of culture and creativity, we have collaborated with the Bureau Français de Taipei to bring Strasbourg's Christmas market to TAIPEI 101, creating an opportunity for the general public in Taiwan to learn more about French culture. In 2016, Gallery 101 held a total of 11 art and cultural exhibitions to increase exposure and opportunities for exchange for local and foreign artists alike. We hope to help more partners and talents whom have worked hard to contribute to our society by offering them the platform to shine!

With "Green Tower for All" as our core philosophy, we shall continue to play our role as a platform. We will work and interact more closely with our stakeholders in order to actively achieve green economy, green operation, green workplace and green experience, allowing TAIPEI 101 to become the highest building and the exemplar for low-carbon sustainability, as well as to accomplish our goal of "bringing Taiwan to the world and the world to Taiwan".

Shih-Ming Chen President, Taipei Financial Center Corporation


Spirit of Green-Sustainable TAIPEI 101

In addition to physically being the tallest building in Taiwan, TAIPEI 101 has also been pursuing perfection in its operations and management. By taking on the vision of "Green Tower for All," along with "S.P.I.R.I.T of GREEN" as the theme of our sustainability strategy, we have extended the definition of "green" from the environment to other dimensions such as products, society, charity and so forth. By leveraging our unique status and influence, we hope to turn TAIPEI 101 into a symbol of low-carbon transition for the rest of the world. We believe that for many of TAIPEI 101's tenants, the building is acknowledged as an icon of their respective industries. TAIPEI 101's sound corporate governance environment and stringent management standards render TAIPEI 101 worthy as a business partner that tenants can feel confident, secure and take pride in.

This chapter will begin by covering TAIPEI 101's mission, vision, sustainability strategy and the company's operating performance for the year in order to illustrate the direction of TAIPEI 101's sustainable development. The chapter will continue to describe the company's organizational structure, composition of its board of directors, its operations and other related information on the company's governance structure and its mechanisms.


1.1 Sustainable Operation Strategy


This section will present the Company's basic information and an overview of our products and services to illustrate TAIPEI 101's basic profile and the direction of its sustainable development.

1.1.1 About TAIPEI 101

Taipei Financial Center Corporation, backed by 11 businesses, was established in October 1997 as an effort to promote the government's policy of building an "Asia Financial Center" in the then newly planned central business district – the Xinyi district. The Company signed the contract with the Taipei City Government to build Taiwan's first large "Build-Operate-Transfer (BOT)" project. Once it obtained the land development right from the city government, the project for a 508m high multi-functional skyscraper with 101 floors above ground and 5 floors below ground commenced.

TFCC has been entrusted with the operations and management of TAIPEI 101's Office Tower, Mall and Observatory. Driven by our mission of "Bringing Taipei to the world," we have sought breakthrough each year ever since our initiation. In order to show to the world the emphasis and efforts Taiwan has made towards low-carbon economic transition, TAIPEI 101 ser ves as a prime example of an architectural structure that was built without green features but through constant hard work and improvement, it has transformed into a role model for green buildings in the world today. Not only that, we have also formulated our sustainability strategy of "S.P.I.R.I.T of GREEN" in 2016 that steers the deployment of our sustainable actions (for more details, see 1.1.3 on Sus tainability Strategy).

101 Classroom

Why 101 floors? The story behind the 100+1F Building of Excellence

During initial planning, the earliest concept for the project involved a primary tower with 59 floors along with two secondary 14-story towers. The idea was soon replaced by a building with 88 floors (due to the auspicious nature of the number "88" in Chinese cultu re), which was again replaced with 99 floors (the number symbolizing something truly unique). We then came to the realization that since we have gotten so high at 99 floors, why not opt for the round number "100," as it represents perfection. The odd "1" at the end symbolizes breakthrough, and that is how 101 floors were chosen for the project of an ever-growing smart building . " 100+1 " has hence become the spirit that TAIPEI 101 embodies.

World Federation of Great Towers

The World Federation of Great Towers (WFGT) is an international association situated at Rialto Towers in Melbourne, Australia. Founded in 1989, the WFGT requires members to be notable tourism attraction and have unique attributes (i.e. height, historical significance or special features) as criteria for membership. Renowned members of the WFGT include the Empire State Building (U.S.), the Eiffel Tower (France) and the Burj Khalif a (Dubai, UAE).

Milestones of Sustainability

Product and Service Summary
TAIPEI 101's Office Tower occupancy rate increased by 1.25% to reach 97.04%

1.1.2 Vision and Mission


Through the clear expression of our corporate vision, mission and core beliefs, TAIPEI 101 has not only managed to maintain its leading international status in different aspects of operations but it also enabled our employees to better understand the Company's position and dir ections for future development.

Corporate Vision

Our vision is "to become the best paradigm of operation and management for super high-rise buildings in the world." Thus, we are constantly pursuing excellence beyond perfection in innovative management, operational efficiency, environmental protection, safe operation, superior service, and corporate social responsibility.

Shouldered with the vital mission to take Taipei to the world while bridging international trends as the internationally renowned tallest green building of the world, we shall continue to manage the office tower, shopping mall and observatory with an innovative and forward-thinking mindset. Our core value of "S.P.I.R.I.T" represents Service with Passion, Operating with Integrity, Respect for our stakeholders, and emphasizing the spirit of Innovation and Teamwork to surpass our o wn expectations.

Corporate Mission

With the goal of sustainable development in mind, TAIPEI 101 has been adjusting the corporate missions for its three business groups in accordance with the changes in the internal and external environments to achieve our vision with efficacy. The corporate missions for TAIPEI 101's three business units are listed in the table below and our annual operational objectives have been established based on these missions.

While observing trends of development in the related markets, we also actively work to soften the impact from our competitors and market environment by formulating corresponding strategies to existing and potential challenges. Given the current market status, we face intense competition in the market for office tower and shopping mall and we will continue to improve rental rate and brand performance as a counter measure. Since the performance of the observatory is directly linked to ser vice quality, we will therefore direct our operational strategy for the observatory towards improving customer satisfaction and service innovation.

Market Overview and Corresponding Strategy for the Business Units

1.1.3 Sustainability Strategy


"An architectural structure built without green features that ended up becoming the tallest green building of the world"


Ever since receiving the LEED Platinum rating in 2011, TAIPEI 101 has been actively promoting green building and responding to environmental initiatives with enthusiasm. In 2016, we received the LEED v4 O+M Platinum rating once again and became the world's management model for supertall buildings. At the same time, we officially adopted "Green Tower for All" as the sustainable vision for TAIPEI 101 by extending the definition of "GREEN" to other aspects of sustainability such as products, society, charity and so forth. Not only that, we have also defined the theme of our sustainable strategy as "S.P.I.R.I.T of GREEN" and chosen the following 9 United Nations Sustainable Development Goals (SDGs) out of the 17 that are relevant to our operations as the guiding strategies that will steer our relevant operations forward. In the future, we hope that TAIPEI 101 could become a beacon for low-carbon transformation in a world that is yet to be truly sustainable.

Sustainability Vision::Green Tower for All

As the world's management model for supertall buildings, TAIPEI 101 has adopted "Green Tower for All" as its vision for sustainability. We hope to extend the definition of "GREEN" to other aspects of sustainability such as products, society, charity and so forth so that TAIPEI 101 may become a symbol for low-carbon transition in the world.

Green represents growth.
According to the definitions by the U .N., the green economy embodies the change of traditional concept of economy by aiming at attaining sustainable development. It is a new economic model that pursues the harmony be tween economy and envir onment.
Green represents nature.
Green operation functions as a sustainable operating model that facilitates the support of environmental protection and shared glory with the environment through the overall products in the service value chain.
Green represents equality.
A green workplace is a tripartite model of the management-oriented framework consisting of employees, the company and the environment, with an emphasis on the optimal balance between the individual and the over all environment.
Green represents inclusiveness.
Through the int eractive synergy between consumption, office space and living experiences, we strive to offer the greatest compatibility between individual-toindividual and individual to the environment.
Sustainability Strategy: S.P.I.R.I.T of GREEN

In order to achieve our sustainability vision of "Green Tower for All" and reflect our core values of "S.P.I.R.I.T,"we have chosen "S.P.I.R.I.T of GREEN" as the framework of TAIPEI 101's sustainability strategy. We have also established "Sustainability Platform," "Irreplaceable Role model" and "Inclusive Tower" as the three pillars that will guide our sustainable actions for the future so that we can entrench the values of "GREEN" deep in our corporate DNA, as well as create a supertall building that facilitates growth, advocates equality, embraces inclusiveness and protects the environment.

The three pillars of our sustainability strategy correspond to the sustainability aspects of governance (G), environment (E) and society (S) and the various meanings "green" represents for green economy, operations, workplace and e xperience. Each pillar also c orresponds to specific SDGs.


The world’s sustainability highest platform
Sustainability Platform

In terms of governance, TAIPEI 101 aspires to become the world's highest sustainability platform through the means of strengthening green procurement, creating a 100% sustainable value chain, promoting social enterprises and establishing sustainable collaborations with tenants/brands so that we may support different sustainable enterprises through diverse channels and thereby achieve the following SDGs:

G Green economy

Partnerships for the Goals


End hunger, achieve food security and improved nutrition and promote sustainable agriculture.


Decent Work and Economic Growth


Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.


Responsible Consumption and Production

SDG 12

Ensure sustainable consumption and pr oduction patterns.


Partnerships for the Goals

SDG 17

Strengthen the means of implementation and re-vitalize the global partnership for sustainable development.


The world's highest low-carbon landmark
Irreplaceable Role Model

In terms of the environment, TAIPEI 101 is driven to accomplish goals such as becoming the world's tallest carbon neutral building, being the highest example for green building management and the highest platform for the promotion of green awareness. In addition to consolidating our green operations, we are also committed to the promotion of the relevant knowledge on green buildings so that TAIPEI 101 may become the world's highest lowcarbon landmark and contribute to the following SDGs:

E Green operations

Good Health and Well-being


Ensure healthy lives and pr omote well-being f or all a t all ag es.


Decent Work and Economic Growth


Ensure the availability and sustainable management of water and sanitation for all.


Sustainable Cities and Communities

SDG 11

Make cities and human settlements inclusive, safe, resilient and sustainable.


Responsible Consumption and Production

SDG 12

Ensure sustainable consumption and pr oduction patterns.


Climate Action

SDG 13

Take urgent action to combat climate change and it s impacts


Partnerships for the Goals

SDG 17

Strengthen the means of implementation and re-vitalize the global partnership for sustainable development.


Supertall promoter for inclusive development
Inclusive Tower

In terms of society, TAIPEI 101 will strive to become a supertall promoter for inclusive development by actively promoting green (namely safe, equal and inclusive) office space, shopping space and tourism space through the creation of a sustainable and friendly workplace, the establishment of a resource recycling platform and promotion of charitable and cultural initiatives in order to address the needs of the different internal and external stakeholders, thereby facilitating the accomplishment of the following SDGs:

S Green workplace and green experience

Good Health and Well-being


End hunger, achieve food security and improved nutrition, and promote sustainable agriculture.


lean Water and Sanitation


Ensure healthy lives and pr omote well-being for all at all ages.


Gender Equality


Achieve gender equality and empower all women and girls.


Decent Work and Economic Growth


Promote sustained, inclusive and sustainable economic growth, full and pr oductive employment and decent work for all.


Reduced Inequalities

SDG 10

Reduce inequality within and among the countries.


Sustainable Cities and Communities

SDG 11

Make cities and human settlements inclusive, safe, resilient and sustainable.


Responsible Consumption and Production

SDG 12

Ensure sustainable consumption and pr oduction patterns.


Partnerships for the Goals

SDG 17

Strengthen the means of implementation and re-vitalize the global partnership for sustainable development.


1.1.4 Operational Performance


TAIPEI 101 has witnessed stable growth in 2016, with a net profit before tax at NT$ 2.574 billion – an increase by NT$ 121 million compared to the previous year, with a growth of 4.95%.

For the office rental market, since the GDP for 2016 only came to 1.5% and the economic growth remained slow, coupled with the fact that the supply of Grade A office space in Taipei City outweighs the existing demand, many enterprises have taken on a conservative outlook for the future and thus had lower inclination for relocating from their existing premises. In 2016, TAIPEI 101's new office space rental signing increased by 2,800 ping and the occupancy rate for the office tower has increased from 95.79% at the end of 2015 to 97.04% at the end of 2016, which is close to full occupancy.

As for the shopping mall, due to the delicate developments in the global political and economic scene in 2016, coupled with the significant decrease in the influx of Chinese tourists, international boutique conglomerates such as Richemont Asia Pacific, Kering and so forth have reported declines in their turnover in their annual financial statements. With regards to the decrease in Chinese tourists, the impact primarily began in the second half of 2016 and this is reflected in the decrease of their annual consumption by approximately 15%. In contrast, consumption from the southeast Asian tourists has grown; the figures for tourists from Malaysia, Thailand, the Philippines, Vietnam and Indonesia have all shown double digit growth.

With regards for the observatory, due to the promotion of the new southbound policy by the Tourism Bureau and an effort by the government to make existing attractions friendlier to the Muslim market, the observatory received a total of 10.69 million visitors in 2016, which translates to a 2% growth compared to that of 2015. Among the visitors, 70.7% (7.56 million visitors) visited Taiwan for purely tourism purposes and the figure is roughly the same as 2015. In the future, since Taipei City will be hosting the Universiade in 2017, the event is expected to bring approximately 12,000 athletes and 150,000 visitors from around the world to Taiwan. As an iconic landmark and attraction for the city, TAIPEI 101 will certainly benefit from the event.

Breakdown of the Operational Performance

(NT$ thousands)
  • The revenues generated by the observatory in 2014 accounted for approximately 45% of the office tower's revenues.
  • The revenues generated by the observatory in 2015 accounted for approximately 43% of the office tower's revenues.
  • The revenues generated by the observatory in 2016 accounted for approximately 40% of the office tower's revenues.
Financial Performance Statement

Unit: in NT$ thousands (unless o therwise noted)

Unit: in NT$ thousands (unless otherwise noted)

Unit: in NT$ thousands (unless otherwise noted)

1.2 Governance Scheme

In addition to having a well-rounded and sound corporate management scheme in place, TAIPEI 101's professional team of management has continued to inject new vitality into the Company by promoting corporate forward-thinking innovation and reform in or der to maintain a solid grasp on the opportunities for sustainability.

1.2.1 Corporate Governance Structure


Within the organizational structure of TAIPEI 101, each department has a clear definition of duties. The Company's structure comprises mainly the Mall Management BU, the Tower Management BU, the Administration BU and the Tourism Management BU, along with other offices including the Auditing Office, Corporate Branding and Communications Department, Business Planning & Research Office and Security Office to carry out the supervisions and operations of relevant affairs. In October 2016, per the resolution of the 6th meeting of the 7th board of directors, TAIPEI 101 adjusted its organizational structure in accordance with the need of company development by changing the "Observatory Operation Department" under the Tower Management to the "Tourism Management BU" and the original "Mall Administration Department" to the "Mall Operation Department" with the addition of a "Business Planning and R esearch Office."

Due to the need for company development, the Tourism Management BU was added to the organizational structure of TAIPEI 101 in 2016.
  • G4-34(Governance structure and composition)
TFCC Organization Structure Chart
The Management

The ratio of male to female in TAIPEI 101's management is 2:4.
Four Categories of the Internal Governance Meetings
The Board of Directors Governance Structure

The Company is a public company. The majority of shares are held by 18 principal shareholders, who are major corporations in their respective industries. We have also established "Procedure of the Board Meeting" and convene shareholders'meetings on a yearly basis and interim shareholders' meetings as needed so that the shareholders have the most up-to-date company development information and are able to provide timely recommendations. In 2016, TAIPEI 101 held one shareholders' meeting that resolved major issues including: the ratification of TAIPEI 101's 2015 business report and financial statements, the ratification of 2015 surplus distribution, the annulment of business strife limitation for a portion of the members and their proxies for the 7th board of directors, the revision of a portion of clauses in the TAIPEI 101's "Company Charter," and the remuneration for employees, directors and super visors for 2015.

The Institutional Share Ownership and Ratio of Ownership
Shareholder Breakdown by Type


TAIPEI 101's supervisors are appointed in accordance with the "Directors and Supervisor Election Procedure" established by the Company. The members of the Board act as the proxy of the major shareholders and the Board comprises 13 Directors and 4 Supervisors, with a term of service lasting for 3 years for directors and supervisors alike. As the company is not publicly listed, it does not have a seat for an independent director nor an auditor, nomination, remuneration or other types of functional committees.

Directors are elected by the shareholders and have outstanding contributions and achievements in their respective fields including accounting, finance, building management and so forth. They not only propose recommendations and strategies to help the Company's future development but also oversee and govern the interests of the Company's shareholders.

List of the Board Members


The list of TAIPEI 101's board of director members include 13 directors and 4 super visors, elected to serve on the 7th board of directors during the 1st ad hoc shareholders'meeting held on December 9, 2015. Their terms of ser vice began on December 9, 2015 and will terminate on December 8, 2018.

In order to ensure effective corporate governance, TAIPEI 101's charters have clearly defined the remuneration system for TAIPEI 101's directors, supervisors and managers. In 2016, linkage between CSR implementation performance and employee remuneration was strengthened through three major action plans, with the following results:

  • Note 1:On May 20, 2016, Mega International Commercial Bank replaced its original director Tsai You-Cai with Madam Liang Mei - Chi , who was then replaced by Mr. Ko Ming-Chuan on October 4, 2016.
  • Note 2:Chunghwa Telecom replaced its original director Chen Bo -Yung with Mr. Wang Hui-Min on June 3, 2017.
  • Note 3:Ting Gu Development replace ditsori ginal director Chen Hung-Lung with Mr. Lin Hsin-Cheng on April 6, 2017.
Gender Distribution for the Members of the Board
Age Distribution for the Members of the Board
  • G4-LA12 (Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership and other indicators of diversity)

The Company established its "Procedure of the Board Meeting," which requires the Board to meet once every two months. In 2016, the Board of Directors held a total of 6 board meetings (ad hoc), with the av erage attendance at 96% for the dir ectors

In order to ensure effective corporate governance, TAIPEI 101's charters have clearly defined the remuneration system for TAIPEI 101's directors, supervisors and managers. In 2016, linkage between CSR implementation performance and employee remuneration was strengthened through three major action plans, with the following results:

In 2016, TAIPEI 101 implemented three major actions plans that are intended to strengthen linkage between CSR implementation performance and employee remuneration.

  • G4-LA12 (Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity)

1.2.2 Sustainability Governance


In order to accomplish our vision of sustainable development and mission goals, we have established our "Corporate Sustainable Development Team" and the "Corporate Sustainable Development Team Operating Procedure" in June 2014 in order to actively promote improvements in governance, environment, social and information disclosure. In 2016, we adjusted our CSR governance structure and redefined our Corporate Sustainable Development Team in accordance with the departments that are responsible for material CSR issues. Depending on the nature of the operations for the unit involved, the relevant CSR issues would be assigned accordingly to ensure a more effective and precise control for the management, planning of sustainability related actions and the implementation of sustainable actions while establishing clearly defined channels of communication.

To ensure that our Corporate Sustainable Development Team develops and grows as anticipated, it is headed by the President along with 24 members. The team convenes meetings on a quarterly basis in accordance with the "Corporate Sustainable De velopment Team Operating Procedure," while high ranking super visors are expected to report their progress of implementation for the specific quarter to keep track and manage the progress of the on-going corporate social responsibility tasks to ensure the improvement upon specific issues.

Structure and Duty of the Corporate Sustainable Development Team

Corporate Sustainable Development Team Organization
Key Achievements of Corporate Sustainability Development Team in 2016

1.3 Responsible Management

As Taiwan's tallest gateway to the world, the TAIPEI 101 has always been a focus of attention both locally and abroad. Shouldering the mission of maintaining Taiwan's image and reputation, we have placed special emphasis on "honesty and integrity." Our principles of ethical management that stress being fair, equal and open have long become an intricate component of our internal culture and delivered positive influence in the value chain. This chapter will cover our principles of ethical management, code of moral conduct, various grievance mechanisms, and our internal audit system.

1.3.1 Ethical Management


Within the organizational structure of TAIPEI 101, each department has a clear definition of duties. The Company's structure comprises mainly the Mall Management BU, the Tower Management BU, the Administration BU and the Tourism Management BU, along with other offices including the Auditing Office, Corporate Branding and Communications Department, Business Planning & Research Office and Security Office to carry out the supervisions and operations of relevant affairs. In October 2016, per the resolution of the 6th meeting of the 7th board of directors, TAIPEI 101 adjusted its organizational structure in accordance with the need of company development by changing the "Observatory Operation Department" under the Tower Management to the "Tourism Management BU"and the original "Mall Administration Department" to the "Mall Operation Department" with the addition of a "Business Planning and R esearch Office."

Principles of Ethical Management

To fulfill our corporate social responsibilities, we have stayed true to the principle of "Integrity" – a component of the Company's core value of "S.P.I.R.I.T" and conducted relevant operations with an upright and responsible attitude while reporting once every two months to the Board of Directors on the r esults of internal audit to prevent acts of dishonesty from affecting the Company's eputation or creating additional manag ement risks.

  • G4-56(Ethics and integrity)
  • G4-SO4( Communication and training on anti-corruption policies and procedures)
Culture of Ethics and Integrity

Internally, in order to disseminate our philosophy and conduct of ethical management, we have established various codes of conduct to strengthen our overall concept of int egrity and self-discipline.

Codes of Conduct
Out of the 320 employees whom have taken the “Emp loyee Code of Conduct” Test, 98% have scored 80 points and above.

In addition to the aforementioned policies and regulations, we have also been working on improving compliance to the codes of conduct and r elevant communication mechanisms, including:

Grievance Mechanisms

TAIPEI 101 offers comprehensive grievance mechanisms and should any stakeholder discover any instances of violations with the Company's regulations on ethical conduct or issues pertaining labor rights, society, human rights, he/she can report the incidence through various complaint channels. For employees lodging a grievance, the Company will provide full protection for the whistleblower to ensure the quality of investigation while preventing the whistleblower from being subjected to unjust reprisal or treatment. Once lodged, a grievance will be handed over to the highest-ranking super visor responsible for the matter for immediate actions to be taken. In 2016, TAIPEI 101 had no complaints made on violation of ethical behavior or grievances pertaining to labor rights, society, human rights or environmental protection.

Internal Audit System

The TAIPEI 101 has established its "Internal Audit Implementation Guidance" in conjunction with the Auditing Office to assist the Board of Directors and managers to inspect and review flaws in the internal control system while gauging the results and efficacy of its operation to provide suggestions on improvement when appropriate. This would ensure effective operation of the internal control system and serve as the basis for its review and correction.

The Company has established corresponding operating procedures by taking into account the characteristics of specific risks related to particular operations under the premise of ensuring legal compliance. The results of implementation for the aforementioned operations are subjected to routine audit by the Auditing Office in accordance with the auditing plan approved by the Board of Directors. Special audits may be implemented depending on the situation in order for suggestions on improvement to be presented in a timely manner. Results of relevant internal audits shall be reported to the Board of Directors on a quarterly basis. For 2016, the Company had no incidents of significant flaws or oversight. Issues identified for improvements and suggestions shall be tracked by the Auditing Office periodically until the issues in question have been rectified. In addition, the Auditing Office shall take the level of risks for various operations into consideration and establish the audit plan for the following year based on the implement ation of various operations and audit results for the current year.

  • G4-14 (Corresponding approach or principle)
  • G4-SO3 (Total number of percentage of operations assessed for risks rel ate d to corruption and the significant risks identified)
Grievance Mechanisms
  • G4-LA16 (Number of grievances about labor practices filed)
    G4-SO11 (Number of grievances about impacts on society filed)
    G4-HR12(Number of grievances about human rights impacts filed)
  • G4-EN34 (Number of grievances about environmental impacts filed, addressed and resolved through formal grievance mechanisms)

1.3.2 Legal Compliance


All departments making revisions/addendums to their internal regulations are required to take pertinent regulations relating to their scope of operation into consideration. In addition, in the event of amendment/annulment to relevant regulations, the related department shall revise their internal regulations to ensure that relevant operations would be carried out in accordance with pertinent regulations. The Legal Affairs Office is responsible for the review of contracts, legal affairs, legal education, IP and regulation/procedure review. In 2016, no incident of fraud, discrimination at the workplace, sexual harassment, or corruption has occurred at TAIPEI 101.

Process of Internal Regulation Revision/Addendum for all Departments
Contract Review Procedures

Each department shall submit request for the preliminary review of contracts to the Legal Affairs Office by submitting printed document or electronic file of the contract in question. After the request has been accepted, the responsible Legal Affairs personnel shall log the accepted date in the contract system and use Microsoft Word’s track change function for the preliminary review. After the preliminary review has been completed, the contract would be reviewed by the responsible Legal Affairs personnel before it is finalized. All responsible units shall apply for the contract stamp in accordance with relevant document application procedures.

Legal Dissemination and Training
Violations of Regulation in 2016

In an effort to protect customers' rights, the company requires all products sold at the TAIPEI 101 to comply with "Commodity Labeling Act" and "Act Governing Food Safety and Sanitation." All products must display appropriate content labels and warnings and be v alidated through our internal inspection process before they may be sold at the shopping mall. In 2016, no violations of product label, food safety, and marketing related incidents have occurred.


1.3.3 External Participation


TAIPEI 101, along with restaurant operator tenants "Diamond Tony's Italian Restaurant," "Shin Yeh" and Taiwan Fairtrade Association signed a four-party "Corporate Fair Trade Product Procurement and Innovative CSR MOU" as a gesture of support f or international fair trade products.

Not only that, as the portal of Taiwan for foreign visitors, the TAIPEI 101 has also striven to participate in renowned international associations listed in the table below:

  • G4-15 (Sustainable initiative)
  • G4-16 (Association)