Compliance plays an important role in conducting business since it is a basic requirement to maintain a license to operate. Non-compliance related to environment could adversely affect the Company both directly in financial terms and indirectly in terms of reputation and stakeholder’s confidence. Environmental compliance is thus one of the Company’s priorities.
The Company announces an environmental policy, which focuses on strict compliance with laws and regulations. To ensure that all business units operate their functions in line with related regulations, the Company has monitored changes on laws and regulations. Moreover, the Company has also implemented a number of environmental managements and set several environmental-related targets. One of the key targets is zero environmental incident with no significant penalty charges.
In regard to the environmental incident reporting standard, the Company classifies environmental incidents into three severity levels. The significant incident is determined according to the following criteria:
- Damage to more than 5 km from source or catastrophic damage to ecosystems
- Irreplaceable changes or loss to animals, plants or ecosystems
- Potential fine more than or equal to $10,000.
- Other costs (remedial action, lost time, legal cost) more than or equal to $20,000
To ensure compliance against regulations and internal standards, the Company has established a global internal audit and compliance department to assure the practices at each business unit. Moreover, the verification by an independent certification body is also performed.