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Mustang Industrial Corp.
Sustainable Development (RBA) Report
Our commitment towards Sustainable Development
As a corporate citizen, Mustang group considers that corporate sustainable development should cover Corporate Governance, Environmentally Sustainable and Social Welfare, and support the Responsible Business Alliance , RBA Code of Conduct. Our business motto is：Honesty, Innovation and Action. In doing this, we strive to follow the professional ethical and legal norms, continuous innovation and implementation, with supply chain to actively respond to the Mustang’s sustainable development policy. To create the maximum benefit for our employees, shareholders and the community as a whole.
Sustainable Development Policy
1. Exercise corporate governance.
2. Foster a sustainable environment.
3. Preserve public welfare.
4. Enhance disclosure of corporate sustainable development
information.
1. Exercise Corporate Governance and Establish RBA Management System
(1).Our company has established the “Corporate Governance Code,” “Corporate
Sustainable Development Practice Code,” and “Corporate Integrity Management Code” as guidelines for implementing corporate governance. Additionally, the
“Sustainable Development Practice Manual” has been formulated to explain our company’s sustainable development policies and the implementation procedures according to the RBA management system.
(2).Members of our company, including directors, managers, and employees, must not
directly or indirectly offer, promise, request, or accept any improper benefits, or engage in other dishonest behaviors such as violating integrity, breaking the law, or breaching fiduciary duties in the course of business activities to gain or maintain benefits.
(3).Each department of our company continuously identifies, tracks, and understands
applicable laws, regulations, and customer requirements according to their respective business operations.
(4).Our company’s sustainable development management system is composed of senior
executives, including the general manager, deputy general managers, and department heads. The general manager appoints Director Chen Chungu as the representative for sustainable development management, responsible for ensuring the implementation and evaluation of the sustainable development management system. Regular management review meetings are held annually, where department heads review the implementation and improvement of our company’s sustainable development-related systems as follows:
1. Review the continued applicability and achievement of sustainable development
policies and goals.
2. Review internal and external audit deficiencies.
3. Review the status of corrective and preventive measures.
4. Assess changes in internal and external environments and risks.
5. Improve and suggest management systems and processes.
6. Assess resource needs (human resources, infrastructure, and work environment).
(5).Our company establishes relevant procedures for risk assessment and management,
covering the following areas:
1. Climate environmental, safety, and health risk management.
2. Emergency and natural disaster response procedures.
3. Financial risk management: high-risk, high-leverage investments, lending funds
to others, endorsements and guarantees, derivative transactions, etc.
4. Economic environment risk management: interest rate changes, exchange rate
fluctuations, inflation, etc.
5. Impact and response to policy and legal changes.
6. Operational risks: company operations, technology, production, procurement and
sales, litigation or non-litigation events, etc.
7. Information security: preventing unauthorized access, use, control, leakage,
destruction, alteration, or other infringements of our company’s information systems or data to ensure confidentiality, integrity, and availability.
(6).Our company continuously audits and evaluates the management system through
internal and external audits, internal control self-assessments, management review meetings, and tracking and updating legal and customer requirements, and continuously improves.
(7).Our company establishes relevant procedures to sign “Sustainable Development
(RBA) Commitment” and “Environmental Control Substance Commitment” with major suppliers and conducts sustainable development (RBA) audits to urge major suppliers to take responsibility for sustainable development together.
(8).Our company requires suppliers to comply with government regulations on
environmental protection, occupational safety and health, and labor rights, and to adhere to legal requirements.
(9).Our company’s information security has been assessed with no significant risks, and
information security goals have been established:
Ensure information security: the availability of information systems should be above 90% (interruption hours/total operation hours ≤ 10%).
2. Foster a Sustainable Environment
(1). Our Company’s Environmental Management Policy:
1. Protect the Earth
2. Cherish Resources
3. Comply with Regulations
4. Continuous Improvement
(2).During the design and planning stages, our company considers minimizing material
usage, optimizing processing, and reducing packaging materials to avoid unnecessary waste. We have long implemented resource recycling, including the recycling of solid waste such as scrap iron, waste paper, waste oil, and kitchen waste. We install soundproofing equipment at manufacturing sites to reduce noise. We also transmit information via the internet to minimize paper usage, and all paper is either recycled or printed on both sides. In the production and transportation processes, we increase the use of plastic recycling bins and agree with customers to recycle and reuse cartons to avoid waste.
(3).Our company complies with laws and customer requirements regarding product
content restrictions (such as RoHS), clearly defining the types and targets of controlled substances, conducting control, and providing relevant reports.
(4).Our company’s water usage is for domestic purposes, with no water-consuming
processes. All areas for incoming and outgoing goods, production lines, storage warehouses, waste, organic solvent, and waste oil recycling devices are indoors and equipped with waterproof gates. Organic solvents and waste oil storage have secondary containment facilities, ensuring no rainwater runoff pollution. Domestic sewage is discharged into the sewage system for treatment, with complete separation of rainwater and sewage.
(5).Chemicals or hazardous substances used or produced in our company’s production,
including toluene and dust, are labeled, stored, used, recycled, or disposed of according to legal requirements, with environmental monitoring conducted. The recycling system uses legal suppliers.
(6).Our company invests in energy-saving and environmentally sustainable machinery
and equipment, adopting new fully variable frequency air compressors. One 50HP unit can replace the gas production of two 30HP units, and the variable frequency air compressor does not operate continuously, saving approximately 20-30% in electricity costs compared to previous expenses. We are gradually replacing lighting with LED tubes, old air conditioners with variable frequency air conditioners, and regular refrigerators with variable frequency refrigerators, effectively saving 30-50% in energy.
(7).Our company’s environmental energy-saving and carbon reduction goals are:
25% reduction in carbon emissions from 2023 to 2050.
Scope 1: The parent company’s greenhouse gas inventory was completed in 2024,
with disclosure planned for 2026, verification completed in 2027, and disclosure of verification in 2028.
Scope 2: The annual growth ratio of water and electricity carbon emissions to
revenue: ≤1.
Scope 3: Encourage employees to walk, ride bicycles, or use public transportation
to and from work to reduce energy consumption and greenhouse gas emissions.
3. Preserve Public Welfare - Employee Care, Health, and Safety
(1).Our company has established a “Sustainable Development Practices Manual” and an
“Employee Handbook” in accordance with relevant labor laws. We have also set up labor-management meetings and a welfare committee to create an environment that properly cares for employees.
(2).Our company provide employees with the freedom to choose their occupation,
protect child and adolescent workers, ensure legal working hours, wages, and various benefits. We prohibit any harsh or inhumane treatment and sexual harassment, do not discriminate against employees for any reason, respect different beliefs, and provide necessary support. We also respect employees’ legal right to free association and conduct negotiations in labor-management meetings.
(3).Our company prioritize workplace safety through education and training,
comprehensive personnel and machine protection facilities, such as arranging fire escape drills twice a year, regular safety training, providing safety shoes to employees handling heavy objects, ear protection for those working in noisy areas, machine guards, safety switches, emergency procedures, first aid kits, and regular health check-ups.
(4).To boost employee morale and care for their health, our company provide nutritious
lunches, enforce a no-smoking policy, offer bottled drinking water, and regularly maintain air conditioning, water towers, and conduct disinfection operations.
(5).Our company have established employee training methods, created training plans,
and offer continuing education subsidies. We encourage learning and provide various incentives such as production performance bonuses, work performance bonuses, employee dividends, seniority awards, and long-term contribution awards to motivate employees to develop their talents and contribute to our company’s success.
(6).Our company continuously encourage employee participation and feedback through
proposals, the welfare committee, labor-management meetings, and regular departmental meetings. We have designated the audit office as the channel for employee complaints.
4. Preserve Public Welfare - Other Aspects
(1).Our company respects and complies with intellectual property laws, establishes
relevant procedures for systematic management, and signs confidentiality agreements with customers, suppliers, and employees during business dealings, procurement outsourcing, and recruitment.
(2).Our company competes fairly with other industry peers, without concerns of
violating fair trade or risks of monopolistic practices.
(3).Our company and its subsidiaries comply with the RBA’s “Conflict Minerals Policy,”
committing not to support or use tin (Sn), tantalum (Ta), tungsten (W), gold (Au), and other metals sourced from conflict-affected areas in the Democratic Republic of Congo and neighboring countries.
(4).Our company complies with personal data protection laws and has established a
“Personal Data Protection Management Method” to safeguard personal privacy related to our company.
(5).Our company’s employees have been making regular donations to nearby orphanages
for nearly thirty years, with total contributions exceeding 20 million NTD, and continue to do so monthly.
(6).Our company actively participates in and donates to the improvement of teaching
facilities and campus environment at Min’an Elementary School, installs surveillance cameras for employee safety, and cooperates with the police to maintain community security.
(7).Our company publicly discloses the contact information of the designated audit
office and spokesperson on its website as a channel to understand and address the reasonable expectations and needs of stakeholders.
5. Enhance Disclosure of Corporate Sustainable Development Information
(1).Our company discloses financial and business information in accordance with legal
requirements. All documents and records are controlled according to the regulations of the competent authorities and our company to ensure the accuracy and authenticity of the information.
(2).Our company has disclosed financial, business, and sustainable development
information on our company website, annual reports, and the Market Observation Post System.
Mustang Industrial Corp.
Sustainable Development Representative
Marketing Director & Executive Director of Board
Daniel Chen
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