TECO Among Top 5% in Governance Evaluation for 7th Straight Year
TECO Ranked Top 5% in Governance Evaluation for 7th Straight Year
TECO Electric & Machinery Co., Ltd. has been ranked in top 5% in corporate governance evaluation for seventh straight year, an honor attained by only 10 TWSE-listed companies, which underscores the remarkable performance and trustworthiness of the company's board of directors, according to Sophia Chiu, chairman.
In order to uphold the honor, the secretariat of the board of directors makes evaluation report, based on the results of self-evaluation questionnaire survey, as reference for the board of directors for improvement. The company also entrusts the Taiwan Corporate Governance Association (TCGA) to evaluate the performance of the board of directors. In its 2021 evaluation report, the TCGA points out that "The company's managing directors meet once every two months to review and discuss its major business plans and proposals, in order to reach a consensus before sending them to the board of directors for resolution, raising the latter's meeting efficiency significantly. The TCGA also affirms the company's setup of the "R&D innovation committee," comprising outside experts and scholars, as it "looks into emerging technologies on the market and considers the company's product-development direction systematically, thereby formulating short-, mid-, and long-term product roadmaps, conducive to the company's competitiveness.
Constant improvement in corporate governance
In addition to constant improvement according to the regulations of competent authority, the company will, in reference to the suggestions of Taiwan Corporate Governance Association, modify criteria for judging the results of self-evaluation questionnaire survey, formulate manual for the code of practice for directors, and evaluate the performance of in-house auditing chief, in reference to the opinions of independent directors, thereby strengthening the function of the auditing committee.
In addition, founded in 2015, the company's corporate governance center has set the company's corporate-governance target and coordinate the efforts of 11 relevant units and more than 20 supervisors/members in attaining that target, including the corporate governance and sustainability committee, investor relation unit, the secretariat division of the board of directors, and the units of human resources, legal compliance, internal audit division, information, accounting, Corporate Purchasing Division, Corporate Administration Performance Developing, and Safety & Health Team. Meanwhile, TECO has also scored remarkable performance for the cause of sustainability, as evidenced by the granting of "Taiwan Corporate Sustainability Awards (TCSA)" by the Business Council for Sustainable Development of the Republic of China (BCSD-Taiwan, formerly the Taiwan Corporate Sustainability Association) for six consecutive years, inclusion by FTSE4Good TIP Taiwan ESG Index as a constituent stock for two years in a row, inclusion by the Dow Jones Sustainability Emerging Markets Index 2020 as a constituent stock, and coverage by S&P Sustainability Yearbook 2021.
Amid the COVID-19 pandemic, TECO has held online investors' conference quarterly since late year, to update investors on the company's latest business and financial situation. TECO reports that it plans to attend international meetings on corporate governance, to keep close tabs on the latest corporate-governance trend worldwide.