Expectations of Sustainable Development
Founded in 1969, Pou Chen Corporation has adhered to the core values established by its founder and the Board of Directors throughout its various stages of development. From its initial establishment and growth, through its listing, to global expansion, the Company has consistently placed great emphasis on corporate governance by safeguarding shareholders' rights and interests and continuously improving the structure and operation of the Board of Directors, including establishing a system of independent directors and formulating the “Corporate Governance Best Practice Principles,” the “Ethical Corporate Management Best Practice Principles,” and the “Sustainable Development Code of Practice,” among other governance mechanisms, to gradually fulfill its responsibilities to shareholders, society, and the environment, thereby further laying a solid foundation for enhancing the Company’s value and strengthening its competitiveness.
Today, having witnessed the challenging development of Taiwan’s footwear industry, Pou Chen Corporation operates globally and has become a comprehensive solutions provider across the footwear industry supply chain. As its operations have become increasingly internationalized, the Company faces increasingly complex impacts and challenges arising from changes in the global economic environment. Pou Chen Corporation recognizes and respects the rights and interests of its stakeholders and fully understands its responsibility to promote sustainable development.
Pou Chen Corporation continues to promote and implement sustainable development under its existing corporate governance mechanisms and is also committed to integrating the concept of sustainable development into its business strategies and continuously strengthening its competitiveness. The Company also fully recognizes that achieving sustainable development goals requires close cooperation with stakeholders, including government authorities, upstream and downstream suppliers, communities, and employees, to jointly pursue sustainable development and continuously improve its practices.
Pou Chen Corporation will be guided by the principles of sustainable development and will continue to focus on its core businesses, invest in and develop talent, optimize existing production capacity, strengthen and innovate supply chain collaboration, and promote energy conservation and carbon reduction, environmental protection, social engagement, and philanthropic initiatives. While actively pursuing sustainable economic growth, the Company will also continue to pay attention to and continuously improve the overall environmental and social development of the regions in which it operates, steadily moving toward the goal of sustainable corporate development.
Sustainable Development Code of Practice
Code of Conduct
Dedicated Unit for Sustainable Development
In accordance with the materiality principle, the Company conducts risk assessments of environmental, social, and corporate governance issues related to its operations. The Company has established the Sustainable Development Department (SD), dedicated to coordinating the development of implementation strategies and managing projects to address the challenges faced by its factories in sustainable production. Its key responsibilities include responding to brand customers' requirements for sustainable business conduct standards, complying with regulations set by local regulatory authorities, managing employee relations, and responding to audits and reviews of the Company's factories conducted by external NGOs. These efforts ensure the comprehensive implementation and advancement of the Company's sustainability goals.
The Sustainable Development Department, as designated by the Board of Directors, serves as the primary coordinating unit for managing the Company's economic, environmental, and social (human rights) risks and impacts, with business contacts designated by senior executives of relevant departments to assist in risk and impact management. Senior management of the Sustainable Development Department regularly provides updates on implementation performance and recommendations. Every six months, the planning, progress, and effectiveness of sustainable development initiatives are reported at the Management Meeting. Every quarter, the Sustainable Development Department reports directly to the Board of Directors on matters related to sustainable development, climate change, and greenhouse gas management. At least once a year, the Department reports to the Board of Directors on the results of sustainable development initiatives and future work plans, and communicates regarding major events of concern to stakeholders.
In accordance with the Company's sustainability governance framework, the Board of Directors actively participates in the oversight and decision-making of material sustainability issues. The Board also supervises the Sustainable Development Department in maintaining ongoing communication with the Company's eight key stakeholder groups through various channels to gather their material concerns. Following review, the relevant issues are incorporated into the Board of Directors' reporting agenda.
In 2025, at the Board meetings held on March 12, May 14, August 13, and December 19, respectively, the Sustainable Development Department reported the following sustainability issues to the Board of Directors: (1) the progress of greenhouse gas inventory and verification for the parent company and subsidiaries; (2) the preparation of the 2024 Sustainability Report and the results of third-party assurance; (3) the implementation progress of the IFRS Sustainability Disclosure Standards; (4) the results of the material topic identification process for the 2025 Sustainability Report; and (5) external relations management concerning environmental and social issues.
The Board of Directors reviews the reported information, conducts in-depth discussions on the risks and opportunities associated with the relevant issues, and provides specific resolutions or recommendations for adjustments to guide the management team in revising action plans, thereby ensuring that sustainability strategies remain aligned with the Company's objectives. All reported matters and response plans for sustainability issues in 2025 were fully supported and approved by the Board of Directors. This process demonstrates the Board's strong commitment to sustainability issues and its governance responsibilities, helping to strengthen the Company's performance in the environmental, social, and governance (ESG) areas, while ensuring that the implementation of sustainability strategies remains aligned with the Company's overall objectives.