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Materiality

Materiality Management

To fully understand the expectations of stakeholders from all sectors, TiMOTION refers to the GRI 2021 Guidelines and the AA1000 SES Standards to conduct stakeholder identification and materiality analysis, assessing the various impacts of its operations on the economy, the environment, people, and human rights.

Procedure of Materiality Analysis

Step 01
Understand the Organizational Context

Operations and Macro Market Analysis, Stakeholder Identification

Step 02
Identify the Actual and Potential Impact

Establish a List of Sustainability Issues

Step 03
Assess the Significance of Impact

Overall assessment of impact severity and level of concern

Step 04
Prioritize the Reporting of the Most Significant Impact

Determine the material topics

Operations and Macro Market Analysis

TiMOTION’s operational activities include the customized design, manufacturing, packaging, quality inspection, and shipping of electric linear actuator products. Each stage must strictly comply with customer product certification requirements, with particular emphasis on product innovation and delivery times. As part of its global strategy, TiMOTION considers various factors, including raw materials, production process management, and customer satisfaction surveys.

Stakeholder Identification

Based on the organizational overview described above and the actual business partners involved in TiMOTION’s operations, and in reference to the five principles of the AA1000 SES: 2015 Stakeholder Engagement Standard (degree of dependence, responsibility, level of concern, influence, and diversity of perspectives), the following key stakeholders have been identified: shareholders/investors, banks, employees, customers, suppliers, local communities, and government agencies.

Establish a List of Sustainability Issues

TiMOTION, considering market trends, regulatory requirements, and standards such as the GRI Guidelines, SASB Industry Standards, and TCFD Guidelines, selected a total of 18 sustainability issues to conduct assessments of positive and negative sustainability impacts and surveys on stakeholder engagement.

  1.  Economic and Corporate Governance Aspects (6 items): Ethical Business Practices, Regulatory Compliance, Information Security, Customer Management, Ability to Expand into New Markets, Risk Management
  2.  Product Aspects (2 items): R&D and Innovation Capabilities, Product Quality and Product Responsibility
  3.  Supplier Management (1 item): Supplier Management
  4.  Environmental Aspects (3 items): Energy Management, Energy Conservation and Carbon Reduction, Pollution Prevention
  5.  Social Aspect (6 items): Human Rights Management, Human Capital Management, Labor-Management Communication, Diversity and Inclusion, Occupational Safety and Health, Social Engagement
Ranking of Positive and Negative Impact Assessment Results by Supervisors
Ranking of Positive and Negative Impact Results

The Sustainability Task Force invited 30 supervisors above the section level to assess the severity and likelihood of both positive and negative impacts on each issue. The results are shown in the figure below. Issues with high positive impacts, in order of highest average scores, include Customer Management, Product Quality and Product Responsibility, and Regulatory Compliance. Issues with high negative impacts, in order, are Supplier Management, Energy Management, and Ethical Business Practices.

Ranking of Stakeholder Interest Survey Results
Ranking of Stakeholder Interest Survey Results

TiMOTION invited stakeholders from various categories to participate in a priority survey and obtained a total of 123 valid responses. The ranking of priority results is shown in the figure above:

Assess the Significance of Impact

TiMOTION conducted a comprehensive assessment of the positive and negative impacts of each issue, their likelihood of occurrence, and stakeholder concern levels. Priority was given to issues with negative impacts above the average and stakeholder concern levels above the average, which were considered for designation as material topics for management. Ultimately, following a senior management meeting, eight material topics were identified.

List of Material Topics in 2025

ESG FocusKey ThemesThe Importance of TiMOTIONAlignment with the SDGsCompliance with GRI Standards and SASB IndicatorsValue Chain Impact Assessment2025 Targets2025 ResultsRelevant Sections
UpstreamTiMOTIONDownstream
GSupplier ManagementEffective supplier management ensures a stable supply of raw materials and reduces operational risksSDG 9 · SDG 12
  1. GRI 308: Supplier Environmental Assessment 2016
  2. GRI 414: Supplier Social Assessment 2016
  3. TC-HW-430a.1 / 430a.2 / 440a.1
VV—

100% of new suppliers sign the Supplier Code of Conduct

Both the Taichung and Dongguan plants have achieved

Supplier Management
GR&D and Innovation R&D and innovation capabilities help maintain TiMOTION’s competitiveness and sustain its growth momentumSDG 9 · SDG 12

TC-HW-230a.1

VVV
  1.  R&D expenditure as a percentage of revenue ≥ 6%
  2.  Total number of new product proposals: 40
  3. Number of innovation proposals: 13


  1. R&D Expenditures as a Percentage of Total: 5.9%
  2. Total number of new product proposals: 44
  3. Number of innovation proposals: 9
R&D and Innovation
GProduct Quality and ResponsibilityProduct quality and responsibility directly impact customer trust and TiMOTION’s operational performanceSDG 9 · SDG 12
  1. GRI 417: Marketing and Labeling 2016
  2. TC-HW-410a.1 / 410a.3
VVV
  1.  Hold monthly operational meetings once a month
  2.  Hold an annual management review meeting once a year
  3. Complete a third-party audit of the facility once a year
  1.  Achieved
  2.  Achieved
  3.  The Taichung and Dongguan plants have completed third-party audits for ISO 9001 and ISO 13485
Product Quality and Responsibility
GCustomer ManagementComprehensive customer management helps TiMOTION stay abreast of changes in customer needs, improve service quality, maintain customer trust, and strengthen long-term orders and brand competitivenessSDG 9 · SDG 12

GRI 416: Customer Health and Safety 2016

VVV

Conduct a customer satisfaction survey, revise the questionnaire items and scoring weights for the four major product lines, and set the base year

Customer Satisfaction by Product Line

  1.  Medical: 82%
  2.  Furniture: 94%
  3.  Ergo: 82%
  4.  Industrial: 72%
Customer Relationship Management
EEnvironmental Management in the Production ProcessEnvironmental management in the manufacturing process helps ensure compliance with regulations, reduce pollution and resource waste, and demonstrate corporate responsibilitySDG 9 · SDG 12 · SDG 13
  1. GRI 306: Waste 2020
  2.  TC-HW-410a.4
VVV
  1.  At least one ISO 14001 internal and external audit per year
  2.  No violations or non-compliance with environmental regulations
  3.  Air pollutant concentrations must meet legal emission standards
  4.  Discharge of wastewater with pollutant concentrations in compliance with legal standards
  5.  Reduction in per capita water consumption (m³/person): 3% decrease compared to the previous year
  6.  Waste managed, sorted, and disposed of in accordance with regulations
  1.  Dongguan Plant has achieved
  2.  Achieved
  3.  Dongguan Plant has achieved
  4.  Achieved
  5.  Dongguan Plant: decrease 7%
  6.  Achieved
Environmental Management in the Production Process
EEnergy Conservation and Carbon ReductionEnergy conservation and carbon reduction can improve TiMOTION’s efficiency and performance, and align with global climate actionSDG 7 · SDG 12 · SDG 13

  1. GRI 302: Energy 2016
  2. GRI 305: Emissions 2016
VV—

3.5% share of renewable photovoltaic energy

Proportion of renewable photovoltaic energy used at the Dongguan plant: 3.69%

Energy Conservation and Carbon Reduction
SHuman Capital Management Human capital management is the cornerstone of TiMOTION’s stable development and ensures that TiMOTION remains competitiveSDG 4 · SDG 5 · SDG 8
  1. GRI 401: Labor-Management Relations 2016
  2.  GRI 404: Education and Training 2016
  3.  TC-HW-330a.1
—V—
 The following are sites in Taiwan:
  1.  Average learning hours per person: 21.6 hours
  2.  Per-person training budget: NT$ 4,500
  3.  Employee Retention Rate: 85%


The following are sites in Taiwan:

  1. Average learning hours per person: 28.4 hours
  2.  Per-capita learning budget: NT$ 6,320
  3.  Talent Retention Rate: 89.86%
Human Capital Management
SOccupational Safety and HealthEffective occupational safety and health management ensures the safety and health of employees, maintains stable production, and enhances TiMOTION’s image as a socially responsible enterpriseSDG 3 · SDG 8

GRI 403: Occupational Safety and Health 2018

VV—
  1.  Number of Occupational Safety and Health Committee Meetings
  2.  Number of Participants in Occupational Safety and Health Training
  3. Number of emergency response drills
  1. Occupational Safety and Health Committee meetings held at each plant
  2. Occupational Safety and Health Training Completed at All Plant Sites
  3. Emergency response drills have been completed at all plant sites
Occupational Safety and Health