Envision

About This Report

Editorial Policy

The 2017 Corporate Social Responsibility Report is the sixth 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 version and a dedicated corporate social responsibility website. Through the publication of the report, we hope to provide a transparent disclosure of our efforts and achievements in economic, social and environmental aspects to stakeholders.

Dedicated corporate social responsibility website:
http://csr.taipei-101.com.tw/

Reporting Period

This Report discloses Taipei Financial Center Corporation’s performance and information for various corporate social responsibility managementapproachs, material topics, responses and actions for 2017 (January 1 2017 through December 31 2017).

Reporting Frequency

TFCC publishes a corporate social responsibility report on an annual basis. Last issue (2016) was published in August 2017. Next issue (2018) will be issued in August, 2019.

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 Standards and External Assurance

This Report is compiled in accordance with the GRI Standards established by the Global Reporting Initiative (GRI) and has been assured by a third-party to ensure the contents herein are compliant with the core options of the GRI guidelines and Type I Moderate Level assurance standards for AA1000 (Account Ability). Refer to the appendices for the assurance statements and index.

Feedback

If you have any questions regarding the report, please contact us at: Taipei Financial Center Corporation – Corporate Sustainable Development Team Address: 59F, No. 7, Section 5, Xinyi Rd., Taipei City 110 Telephone: +886 2 8101 8813 E-mail: CSR@tfc101.com.tw

Theme for the Report - Green Engine

“Green Tower for All” is the vision of sustainability conceived by TAIPEI 101 and through our publication of corporate social responsibility reports, we continue to present TAIPEI 101’s efforts and commitment to become an icon and beacon for the world’s transition to low-carbon sustainability. And as such, TAIPEI 101 has detailed the “points” of our key strategies in the 2015 CSR report and extended the definitions for “green”; followed by in 2016 connecting our three major business units with “lines” and turning the concept of “green” into actions and in 2017, we have gradually expanded the “plane” of TAIPEI 101’s influence over low-carbon transition by adopting “Green Engine” as the central theme for the year’s CSR report, thereby illustrating that TAIPEI 101 has been equipped with adequate “green” momentum with the capacity to assume the role of spearhead in various domains of sustainability. Through more aggressive approaches in aspects of our governance, consumption, tourism experience, environment, safety and society, we shall define the new momentum that drives green lifestyle.

 

Green   Engine     Sustainable TAIPEI 101

EN
vision
 
TAIPEI 101’s Vision for Sustainability
G
enerate
 
Generate Local Momentum
I
nfluence
 
Influence for Green Lifestyle
N
avigate
 
Navigate to Safe Environment
E
nhance
 
Enhance Diverse Connections
 

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/shopping mall tenants" and "community/NGO" and further adjusted the composition of TAIPEI 101's stakeholder groups in 2015 but maintained 10 groups of key stakeholders. For 2017, the stakeholder groups are identical to that for 2015.

We have established various communication channels with different stakeholders. Stakeholders can actively or passively leave comments and requests to us, in order for us to response to them through respective channels. The following table is a summary of our communication channels; for actions we have taken in response to stakeholders’ suggestions, refer to Chapter 5.3.2 on Product and Service Quality and Transparent Communication.

2017 Stakeholder Groups
Communication Channels between TAIPEI 101 and Stakeholders


Online Survey for External Stakeholders

TAIPEI 101 has always worked hard to improve stakeholder engagement. In order to listen to the voice of more stakeholders, we have created and launched 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 topics, 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.

Our online survey can be found at:
http://csr.taipei-101.com.tw/tw/Customer_Service.php?NC_ID=20170814001

Materiality Analysis

Material Topic IdentificationContents of this report have been compiled in accordance with the guidelines of GRI Standards 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 topics of significant impact on economy, society and environment and issues of the primary concerns to stakeholders. The process of material topic identification is summarized as illustrated below.

Identification
 
Prioritization
 
Validation
 
Review
  • GRI102-45~49 (entities included in the consolidated financial statements, defining report content and topic boundaries, list of material topics, restatement of information and changes in reporting)



  • Identification

    ‘’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 2017, the subsidiary has been excluded from the boundary of the company’s corporate social responsibility report for 2017. The boundary of all non-financial information disclosure contained herein is strictly limited to TAIPEI 101 itself.

    The identification of material topics for 2017 has been made based on the materiality matrix from 2016 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 topics to ensure the materiality of the list, the completeness and coverage of all related stakeholders.

    Prioritization

    After determining the list of material topics, the ranking and assessment of relevant material topics are conducted based on their “impact on the company’s sustainable operations”, “influence on stakeholders assessment and decision-making” and “impact on economy, environment and society brought by the corporate value chain” through the survey.

    Validation

    After the material topics have been identified and preliminarily prioritized, TAIPEI 101’s management will validate the topics and made relevant adjustments according to the interpretations and suggestions from senior managers. This ensures that the results are duly compliant with the GRI guidelines and principles of inclusion for stakeholders.

    Review

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


    Material topics and their scope of impact on TAIPEI 101, the extent of internal and internal impacts brought by these topics, key causes, corresponding chapters and GRI aspects are presented in the table below.

    Impacts that occur in the organization

    Impacts that occur as a result of the organization’s business relationships with other entities


    Boundary of Material Topics and Scope of Impact Matrix


    Message from the Chairman



    Taipei Financial Center Corporation
    Chairman Joseph Chou

    Climate changes around the world in 2017 have escalated, leading to record-breaking figures in terms of damages and losses caused by natural disasters. The need for low-carbon economic development has become more important than ever. The United Nations has called upon countries around the world to adopt and work towards its Sustainable Development Goals (SDGs), which have received significant attention from relevant public and private organizations. Incidentally, the Legislative Yuan has initiated its UN SDGs Advisory Council of Parliament in 2017 as a way to convey Taiwan’s efforts and determination in achieving the SDGs. The trends for sustainable development have swept from the international community to the domestic scene and driven different sectors to actively pursue low-carbon transition. TAIPEI 101 has always taken pride in being the beacon in the torrent towards sustainable transition. Apart from working diligently to bolster its energy for sustainable operation, TAIPEI 101 has also lit the path for partners that are willing to collaborate with the Company.

    In 2015, TAIPEI 101 has formally established “Green Tower for All” as our vision for sustainability and with it as the basis, we have gradually expanded TAIPEI 101’s influence on low-carbon transition by advancing from “points” to “lines” and “plane”. As for 2017, we have defined the theme of our sustainability promotion as “Green Engine”, which reflects the fact that TAIPEI 101 has been equipped with adequate “green” momentum to assume the role of spearhead in various sustainability domains. Through active utilization of our influence in governance, environment, safety, society, consumption and tourism experience, TAIPEI 101 shall become the major proponent in shaping the green lifestyle that we have envisioned. Receiving several external recognitions in 2017 has certainly boosted our morale and spirits. These awards include the 10th TCSA CSR Report Gold Award and Growth through Innovation Awards, Excellence in Corporate Social Responsibility from the CommonWealth Magazine, top award and special award in the Buying Power for the procurement of social innovative products and services and AA- domestic long-term rating from Fitch Ratings. These awards not only commend TAIPEI 101’s efforts in fulfilling its corporate social responsibilities but have also strengthened our resolve in attaining sustainable development.

    While we have achieved impressive performance in 2017, as a role model for super tall building of low-carbon sustainability transition, TAIPEI 101 shall not rest in our efforts for improvement. Having received the highest Platinum rating for green building LEED v4 O+M certification for building operations and maintenance, we have not only continued to make further improvement but also diverted our focus on leveraging our own experience for green building upgrade in the hopes of becoming a LEED advisor by offering a platform for cutting-edge green building technologies and management experience exchange. Toward this end, we have rode the wave of smart green buildings and collaborated with U.S. Green Building Council (USGBC) to invite 12 internationally renowned corporations to share the latest technological trends in the hopes of facilitating greater synergy between sustainable environmental protection and relevant technologies through the organization of SmartTrend exhibition. At the same time, we have also received invitations from the Council on Tall Buildings and Urban Habitat (CTBUH) and U.S. Green Building Council (USGBC) to attend its 2017 Green Build International Conference & Expo as a guest speaker to share our experiences in green building and challenges we have overcome at the two international events with other international participants. In addition, renowned artist Kang Muxiang was also invited to showcase his artistic creations made from used cables of TAIPEI 101’s elevators at New York and Washington. These exposures have further consolidated TAIPEI 101’s role as a vital promoter of green building around the world.

    As for the future, TAIPEI 101 will continue to adhere to “Green Tower for All” as its vision for sustainability while improving upon various measures and actions to present our experience and techniques in sustainable development to Taiwan and the rest of the world so as to keep Taiwan under the limelight on the international stage. We shall put forth even more effort to create an environment that brings happiness and harmonious coexistence for our stakeholders as we become the benchmark and influencer for the world in the transition for low-carbon sustainability!

    Message from the President

    As a globally renowned landmark, TAIPEI 101 shoulders extremely high expectations and recognition of the general populace in Taiwan. We have always upheld the highest standards for our own performance. In 2017, with the efforts from all TAIPEI 101 employees and guided by our “Green Tower for All” vision, we have delivered impressive performance in different aspects of sustainable operation, environment, social charity and promotion of cultural creativity industry.

    In terms of sustainable operation, our Corporate Sustainability Development Team has been responsible for the implementation of the Company-wide sustainability plan each year so that TAIPEI 101 stays true to its strategy of “S.P.I.R.I.T. of GREEN”. TAIPEI 101 established its Risk Management Committee, Business Selection Committee and Employee Promotion Joint-Interview Committee in 2017 and has hired more employees from disadvantaged minorities than the legal requirements. We firmly believe that an ideal workplace can improve and maintain employees’ health while improving the Company’s productivity. In 2017, we have received the Batch of Accredited Healthy Workplace from the Health Promotion Administration, Ministry of Health and Welfare for two years running.

    TAIPEI 101 delivered impressive results in its performance for environmental improvement. Our statistics for total power consumption, total GHG emission, total water consumption and total waste generated were all lower compared to the previous year. Not only that, the total amount of our green purchasing also grew by 1.5 times compared to 2016, and our number of green environmental protection tour visitors has also reached a new record at 1,181 visitors. Furthermore, we have continued with our LED lamp replacement program and TAIPEI 101 will be able to save 230,000 kWh of power each year from now on. Having purchased green power from Taipower for three consecutive years, TAIPEI 101 has not only received the “Green Power Gratitude Award” from MOEA as a gesture to commend our efforts but also utilized our own green influence to invite 4 tenants to jointly purchase 670,000 kWh of green power. TAIPEI 101 has received several distinctions for its performance, including a certificate of acknowledgement from Taipei City Government in 2017 for “promoting over NT$ 5 million for green purchasing”, the “Green Power Gratitude Award” from MOEA, Outstanding Green Purchasing Performance from the Department of Environmental Protection for private enterprise and organization and the 26th ROC Enterprise Environmental Protection Award from the Executive Yuan.

    TAIPEI 101 has also been working on the promotion of social charity and cultural creativity over the years and has achieved considerable results thus far. Through “the world’s highest platform for charity”, we have continued to match-make organizations that require resources and enterprises that have the means to offer them while actively seeking opportunities to perform volunteer services in remote areas in other parts of the world in 2017 to leverage the collective strengths of the platform and our tenants to spread our love to Africa and northern Thailand as we contribute to helping disadvantaged children in rural areas and promote the values of “one world, one family”. At the same time, by hosting various events such as the Munich Oktoberfest, Disney’s Frozen-themed carnival, Art Taipei and so forth, we have presented the essence of different cultures to citizens of Taiwan while providing local art and cultural talents opportunities to have their moments on the international stage as we strive to accomplish the objective of “bringing Taiwan to the World and the World to Taiwan”!

    While TAIPEI 101 is no longer the tallest building in the world, we are without a double the highest leading brand name in sustainable development. As for the future, on our path towards sustainable development, we shall continue to extend the definition of “green” from the environment to other aspects of products, society, charity and so forth by focusing on our involvement in green economy, green workplace, green operations and green experience whilst gradually expanding our low-carbon transition influence to utilize our strengths as the highest charity platform and Taiwan’s portal to the international community, leading our stakeholders onward to the goal of sustainability in stride!


    Taipei Financial Center Corporation
    President  Angela Chang

    Envision TAIPEI 101’s Vision for Sustainability

    As the world’s tallest green building, TAIPEI 101 is pursuing perfection in various aspects of sustainable operation and governance. This year, we have extended the definition of “green” by building it above our vision of “Green Tower for All” in order to redefine TAIPEI 101 as a “Green Engine” to convey our philosophy through aspects such as governance, consumption and tourism experience, the environment, safety, society and so forth while broadening our vision of sustainability as we become a new momentum that shapes green lifestyles and leverage our holistic influence to remain as an icon and beacon for the world’s transition towards sustainability.

    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 core philosophy and strategy of TAIPEI 101's sustainable operation. 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. Finally, we will touch on how TAIPEI 101 establishes a corporate culture that emphasizes honesty and integrity, relevant mechanisms and our participation in relevant external sustainability related initiatives as a way to demonstrate our attention and response to stakeholders regarding issues of material topics, such as sustainable operation strategy, operational performance, corporate governance, ethical management and so forth.

     

    1.1 Sustainable Operating 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

    Material Issue: Sustainable Operation Strategy
    Stakeholder

    Driven by our mission of “Bringing Taipei to the world” and sustainability vision of “Green Tower for All”, we have sought breakthrough each year ever since our initiation. Although TAIPEI 101 was not designed initially as a green building, through constant hard work and improvement, the building has transformed into a true green building. We have adopted “Green Engine” as the central theme for our 2017 Corporate Social Responsibility Report to convey the idea that TAIPEI 101 shall become the “engine of locomotive” that drives the process of sustainability in different areas with our specific capacities and role. Given that the world at present has yet to reach an ideal status in sustainability, TAIPEI 101 shall establish its presence as a guide for the world towards the transition for low-carbon sustainability (Refer to Chapter 1.1.3 on Sustainability Strategy for more information).

    TFCC at a Glance
  • Note: all figures have been taken from the statistics dated December 31, 2017
  •  

    GRI 102-10

    (Significant changes to the organization and its supply chain)
    101 Classroom

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

    During the 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 culture), which was again replaced with 99 floors (the number symbolizing something truly unique). We then came to the realization that since we were already so high at 99 floors, why not opt for the round number “100,” since it represents perfection. The odd “1” at the end symbolizes a 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.

    The World Federation of Great Towers

    The World Federation of Great Towers (WFGT) is an international association situated at the Rialto Towers in Melbourne, Australia. Founded in 1989, the WFGT requires its members to be notable tourism attractions 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 Khalifa (Dubai, UAE).




     

    GRI 102-1~7

    (Name of the organization, activities, brands, products and services, location of headquarters, location of operations, ownership and legal form, markets served and scale of the organization)
     
    Milestones of Sustainability
  • Note 1: TAIPEI 101 is the only enterprise chosen by the panelists for its exceptional performance and improvement in green energy and sustainable development
  •  
     
    Product and Service Summary

     
    TAIPEI 101 Mall occupancy rate increased by 1.9% to reach 99.3%
     

    1.1.2 Vision and Mission

    Stakeholder
    Material Issue: Sustainable Operation Strategy

    Our vision is “to be the world’s management model for supertall buildings.” Thus, we are constantly pursuing excellence beyond perfection in innovative management, efficient operations, energy conservation, environmental protection operational safety, quality service and corporate social responsibility. 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 innovation and a 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 own expectations.

    GRI 102-16

    (Values, principles, standards, and norms of behavior)
    Core Value “S.P.I.R.I.T”
     

    1.1.3 Blueprint of Sustainable Strategy

    Stakeholder
    Material Issue: Sustainable Operation Strategy

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

    TAIPEI 101 received LEED Platinum rating in 2011 and later LEED v4 O+M Platinum rating in 2016. Each year, we have attained impressive growth and actively promoted green building while responding to environmental initiatives with enthusiasm. At the same time, we have officially adopted “Green Tower for All” as TAIPEI 101’s vision for sustainability. By extending the definition of “Green” from environment to other aspects of sustainability such as products, society, charity and so forth in order to gradually expand TAIPEI 101’s low-carbon transition influence over the years. We have also defined the theme of our sustainable strategy as “Green Engine” and chosen the following 10 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 sustainability transmission for the world given the premise that “the world is not sustainable enough.” Each year, each business division of TAIPEI 101 will establish their annual objectives in accordance with our blueprint of sustainable strategy and during the quarterly CSR Conference hosted by the President, the status of promotion will be reviewed and reported to the President for discussion on relevant management elements. In the future, we will assess the need to establish more comprehensive management policies for major topics.

     
    101 Classroom

    UN’s Sustainable Development Goals (SDGS)
    In September 2015, governments, enterprises and leaders of the civil societies gathered at the UN Summit and adopted a set of 17 goals to end poverty, fight injustice and combat climate change before 2030.

     
    Sustainable Vision: Green Tower for All

    As the tallest green building in the world, 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 the world in its transition to low-carbon sustainability.

    Green represents growth.
    According to the definitions by the UN, 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 between economy and environment.
    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 overall environment.
    Green represents inclusiveness.
    Through the interactive synergy between consumption, office space and living experiences, we strive to offer the greatest compatibility between individual-to-individual and individual to the environment.
     
     
    Sustainable Strategy: S.P.I.R.I.T of GREEN

    In order to achieve our sustainable vision of “Green Tower for All” and call back 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 sustainable strategy. Not only that, we have also adopted the three pillars of “Sustainability Platform,” “Irreplaceable Role model” and “Inclusive Tower” for the planning of our sustainable actions for the future so that we can entrench the values of “green” deep in our corporate DNA as we create a supertall building that facilitates growth, advocates equality, embraces tolerance and protects the environment.

    The three pillars of our sustainable strategy correspond to the sustainability aspects of economy (G), environment (E) and society (S) and the various green definitions for economy, operations, workplace and experience. Not only that, each pillar is also correlated to specific SDGs.


     

    Sustainability Platform

    The world’s sustainability highest platform

    G
    Green economy

    In terms of economy, TAIPEI 101 aspires to become the world’s highest platform of sustainability through the means of strengthening green purchases, 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:

    SDG 2.
     

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

    SDG 8.
     

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

    SDG 12.
     

    Ensure sustainable consumption and production patterns

    SDG 17.
     

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

     

    Irreplaceable Role Model

    The world’s highest low-carbon landmark

    E
    Green operations

    In terms of the environment, TAIPEI 101 is driven to accomplish goals such as becoming the world’s tallest carbon neutral building, 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 building so that TAIPEI 101 may become the highest low-carbon landmark on the surface of the planet and contribute to the following SDGs:

    SDG 3.
     

    Ensure healthy lives and promote the well-being of all ages

    SDG 6.
     

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

    SDG 11.
     

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

    SDG 12.
     

    Ensure sustainable consumption and production patterns

    SDG 13.
     

    Take urgent action to combat climate change and its impacts

    SDG 17.
     

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

     

    Inclusive Tower

    Supertall promoter for inclusive development

    S
    Green workplace and green experience

    In terms of society, TAIPEI 101 will strive to become a supertall promoter for shared prosperity and development by actively promoting green (i.e. safe, equal and harmonious) 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 charity and cultures in order to address the needs of the different internal and external stakeholders, thereby facilitating the accomplishment of the following SDGs:

    SDG 2.
     

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

    SDG 3.
     

    Ensure healthy lives and promote the well-being of all ages

    SDG 5.
     

    Achieve gender equality and empower all women and girls

    SDG 8.
     

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

    SDG 10.
     

    Reduce inequality within and among the countries

    SDG 11.
     

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

    SDG 12.
     

    Ensure sustainable consumption and production patterns

    SDG 17.
     

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

     

    1.1.4 Operating Performance

    Material Issue: Operatinal Performance
    Stakeholder

    Present, TAIPEI 101’s areas of service include the office tower, shopping mall and the observatory. In an effort to maintain outstanding operational performance in the long run, we have established short and long-term business development plans along with relevant corresponding strategies for factors that could potentially affect the company’s management in the future. For more information, refer to TAIPEI 101’s annual report for 2017.

    In 2017, TAIPEI 101’s net profit before tax came to NT$ 2.565 billion – a decrease of NT$9 million (0.35%) compared to the previous year.

    For the office rental market, since the GDP for 2017 only came to 2.86% and the economic growth remaining was at a slow pace, 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. The occupancy rate for the office tower has fallen slightly from 95.79% (at the end of 2015) to 94.62% (at the end of 2017). As for the shopping mall, the global economic situation in 2017 remained relatively stable and despite the substantial decrease in the number of Chinese tourists that had resulted in a 2.0% decline for all departmental stores in Taiwan during the first half of 2017, we have nevertheless successfully managed to attract local customers and stimulate higher consumption through means of interior renovation, new brand development and various promotions, with an overall growth in business by 2.6%. Due to a series of large international events hosted at TAIPEI 101 Mall, we have benefited from the additional exposure. Coupled with the opening of popular stores such as the Apple Store, Adidas’ flagship store, Starbucks Reserve Store and so forth coupled with our collaboration with boutique brands in organizing relevant fashion events to attract customers, we were able to achieve close to 2% in business growth in 2017 and came out ahead compared to the average performance of competitors.

    As for the observatory, in light of the success of the “Diversified deployment with eyes on the world” strategy implemented by the Tourism Bureau in 2017, we received 10.73 million visitors in 2017 – a growth by 0.46% compared to 2016. Among the visitors, 71.2% visited Taiwan purely for tourism purposes and the figure translates to a growth of 1.16% compared to 2016. As Taipei City hosted the Universiade in 2017, a total of 12,000 athletes and 150,000 visitors from around the world had visited Taiwan, thereby benefiting TAIPEI 101 as the iconic landmark and attraction of the city.

    Breakdown of the Operational Performance


    (Unit: in NT$ 1,000)
     
  • 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.
  • The revenues generated by the observatory in 2017 accounted for approximately 39% of the office tower’s revenues.
  •  

    GRI 201-1

    (Direct economic value generated and distributed)
    Financial Performance Statement


    Unit: in NT$ thousands (unless otherwise noted)
     

    Distributed Economic Value


    Unit: in NT$ thousands (unless otherwise noted)
     

    GRI 201-4

    (Financial assistance received from government)
    Other Economic Performance Indicators


    Unit: in NT$ thousands (unless otherwise noted)
     
  • Note 1 : All calculations have been made using IFRS
  • Note 2 : Employee salary and benefits: this covers their salary, insurance, meals and benefits
  • Note 3 : Dividend distribution: the dividend for 2017 has been approved by the Shareholders’ Meeting as of Wednesday, June 27, 2018
  • Note 4 : Community investment: covers expenses for plants in the perimeters of the building and donations
  • Note 5 : Expenses paid directly to the government: includes land tax, MRT premiums, taxes (other than house tax) and fines
  • Note 6 : Government subsidies received in 2017 have been used to cover the expenses for childcare facilities in full
  •  

    1.2 Governance Scheme

    1.2.1 Corporate Governance Structure

    Stakeholder
    Material Issue: Corporate Governance

    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, Business Planning & Research Office, Corporate Branding and Communications Department, and Security Office to carry out the supervisions and operations of relevant affairs.

    Mall Management BU
    Responsible for tenant business solicitation at the shopping mall, contract management, and internal operations, property management, marketing planning, customer services and so forth.
    Tower Management BU
    Responsible for the rental of the office tower space and property management.

    GRI102-18

    (Governance structure)
    Tourism Management BU
    Responsible for the operations and management of the observatory, marketing events, distribution of TAIPEI 101 products, advertisement solicitation, counter rental, group admission, horizontal alliance, janitorial and security affairs, warehousing of materials and so forth.
    Administration BU
    Responsible for the administrative affairs, covering human resources, general affairs, finances, IT, procurement, legal affairs and so forth.
    TAIPEI 101 Organization Structure Chart
    The Management

    Under the management’s leadership, TAIPEI 101 has convened the relevant internal governance meetings according to schedule to achieve thorough control of the Company’s operations while facilitating internal communications. The relevant internal governance meetings operate based on the following mechanisms:

    GRI 405-1

    (Diversity of governance bodies and employees)

    The ratio of male to female in TAIPEI 101’s management is 1:1
    Four Categories of the Internal Governance Meetings



    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 2017, TAIPEI 101 held one shareholders' meeting.

    TAIPEI 101’s directors and 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 audit, nomination, remuneration or other types of functional committees.

    GRI 201-4

    (Financial assistance received from government)
    Establishment of various committees

    TAIPEI 101 has established a number of functional committees, including its inter-departmental solicitation committee, human resources arbitration committee, workers’ retirement fund supervisory committee, large procurement arbitration committee and safety management coordination. In 2017, we established two new committees: the risk management committee and joint-interview committee. Descriptions for the two committees are provided below.



    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.



    The Company established its “Procedure of the Board Meeting,” which requires the Board to meet once every two months. In 2017, the Board of Directors held a total of 6 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, the correlation between CSR implementation performance and employee remuneration was strengthened through three major action plans, with the following performance in 2017:board meetings (ad hoc), with the average attendance at 92% for the directors.

    1.2.2 Sustainable Governance

    Stakeholder
    Material Issue: Corporate 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. Our Corporate Sustainable Development Team has been redefined 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 relevant division and department supervisors. The team meets on a quarterly basis in accordance with the “Corporate Sustainable Development Team Operating Procedure,” while high ranking supervisors 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.


     Corresponding SDGs:SDG 8

    GRI 102-18

    (Governance structure and composition)
    Structure and Duty of the Corporate Sustainable Development Team


    Organization Chart of the Corporate Sustainable Development Team


    Key Achievements of Corporate Sustainability Development Team in 2017

    1.3 Responsible Management

    Stakeholder

    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

    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 on a quarterly basis to the Board of Directors on the results of internal audit to prevent acts of dishonesty from affecting the Company's reputation or creating additional management risks.

    Corresponding SDGs:SDG 12
    Culture of Ethics and Integrity

    In order to disseminate our philosophy and conduct of ethical management, we have established various codes of conduct to strengthen our overall concept of integrity and self-discipline.

    GRI 102-16

    (Values, principles, standards and norms of behavior)
     

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



    GRI 205-1~3

    (Operations assessed for risks related to corruption, communication and training about anti-corruption policies and procedures, confirmed incidents of corruption and actions taken)

    Note 1: Actual test rate is calculated based on the total number of employees for the current month. Anti-corruption policy on purchasing operations and methods of communication
    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 supervisor responsible for the matter for immediate actions to be taken. In 2017, TAIPEI 101 had no complaints made on violation of ethical behavior or grievances pertaining to labor rights, society, human rights or environmental protection. In the “Appointment with the President” activity for 2017, 24 employees had the opportunity to interact with the company’s management and thereby improving employee satisfaction. The following are the grievance channels for different stakeholders. TAIPEI 101 has yet to create a grievance channel for suppliers and the company will establish relevant procedures in the future.

    GRI 102-11

    (Precautionary Principle or approach)
    Channels of Complaint Submissions

    Internal Audit System

    The TAIPEI 101 has established its “Internal Audit Implementation Rules” 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 its operational effectiveness and efficiency 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 the aforementioned operational activities are subjected to routine audits performed by the Auditing Office in accordance with the annual plan approved by the Board of Directors. Special audits may be conducted as needed. The routine and special audits provide management with feedback in a timely manner and recommendations for improvement if any defect is found. Results of internal audits shall be reported to the Board of Directors on a at least quarterly. For 2017, the Company had no incidents of significant flaws or oversight.

    The implementation of corrective action plans 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 operational risks into consideration and establish the audit plan for the following year based on the implementation of various operations and audit results for the current year.

     

    1.3.2 Legal Compliance

    Stakeholder
    Material Issue: Ethical Management

    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 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 validated through our internal inspection process before they may be sold at the shopping mall. In 2017, no incident of fraud, discrimination at the workplace, sexual harassment, corruption, product label/food safety or marketing related violation has occurred at TAIPEI 101. In addition, there had been no environmental law related violations.

    Process of Internal Regulation Revision/Addendum for all Departments


    GRI 307-1

    (Compliance with environmental laws and regulations)

    GRI 419-1

    (Non-compliance with laws and regulations in the social and economic area)

    Corresponding SDGs: SDG 10, SDG16
    Legal Dissemination and Training

    1.3.3 External Participation

    Stakeholder

    Material topics: ethical management, green building management and promotion, operational safety risk management, promoting the values and brands of Taiwan

    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:



    Corresponding SDGs:SDG 17

    GRI 102-13

    (Membership of associations)
    Associations