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Corporate Social Responsibility
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Sustainability Management Overview

Sustainability Management Overview

Transforming from an administrative institute to a state-owned enterprise, TIAC has been actively implementing the concept and execution of corporate management, and continuously introducing innovative and heartwarming services. TIAC strives to build a brand which aims to “Connecting the World with Heart”. Through implementation of corporate governance and principles, TIAC achieves much in field of “Protection of Shareholder Rights and Pursuit of Corporate Sustainable Development,” “Focus on Stakeholders,” “Ethical Management and Effective Supervision,” “Implementation of Market Mechanisms and Strength of Information Transparency,” as well as “Facilitating Inclusive Local Development.” Our ethical management has been established through compliance with market mechanisms and legal regulations. Based in Taiwan, TIAC’s culture of corporate governance promotes international competitiveness and brings unparalleled glory to the nation.

Material issues: Policies and legal compliance
Policies and Commitments

Continued adherence to government policies and promotion of relevant projects while strengthening an internal culture of ethics and legal compliance which strives to prevent legal violations and reduce legal compliance risks.

Goals Short-term
  • Cooperate in timely revision of corresponding internal regulations when external regulations change.
  • No major violations of social, environmental, or economic laws and regulations.
Mid- and long- term
  • Design internal control systems in accordance with the “Regulations Governing Establishment of Internal Control Systems by Public Companies”, providing relevant training courses and promoting anti-corruption concepts for corporation employees to pursue high standards of ethical behaviors.
Grievance mechanism

Please refer to the following sections: Methods of engagement listed in the “Stakeholder Identification and Engagement Table”, or “Contact Us”on TIAC’s website.

Specific actions
  • Continued adherence to government policies and the promotion of smart airport and Taoyuan Aerotropolis projects.
  • Continued tracking the regulatory requirements such as changes in legal requirements and impacts to internal policies, and revision of internal regulations in accordance with these regulatory changes.
  • Periodic organization of educational and promotional anti-corruption activities. In 2019, TIAC hosted a total of 7 events with 466 attendees.
Evaluation mechanism
  • Non-periodic revisions and reviews of internal regulations in accordance with changes in external laws and regulations.
  • Quarterly statistical reviews of corporation litigation cases and assessment of litigation frequency, case numbers, and case types to ensure control and improvement.
Sustainable Governance

Corporate governance of TIAC encompasses six aspects: 1. Implementation of Internal Control and Audit Systems; 2. Improvement of Financial Systems; 3. Strengthening of Board Functions and Operational Efficiency of the Board of Directors and Supervisors; 4. Disclosure and Increased Transparency of Corporate Transformations and Material Information; 5. Protection of Governmental Interests and Utilization of Supervisor Functions; 6. Focus on Stakeholder Rights.

TIAC is committed to setting a goal of establishing a culture of ethical management. Anticorruption policies and targets have been formulated according to the Civil Servants Service Act and the Anti-Corruption Ethical Standards for Civil Servants, and TIAC has also established mechanisms with timely handling of legal violations and improper behaviors. Apart from internal promotion of regulatory compliance and active advocacy of measures relating to the Sunshine Acts, TIAC also regularly organizes anti-corruption educational activities. TIAC hosted a total of 7 events in 2019 for 466 participants, and further built a culture of anti-corruption by surveying and auditing high-risk business projects; establishing an anticorruption platform for Terminal 3; and reducing anti-corruption risks of major procurement projects to build a culture of anti-corruption.

Internal Audits

Internal audits in accordance with the Implementation Guidelines for Internal Audit Systems and periodically compiles annual audit plans which are submitted to the Board for discussion and implemented following Board approval. The Corporation’s chief auditor makes regular reports to the Board regarding implementation progress of audit plans, deficiencies of internal control systems, and follow-up of improvements to abnormalities. Internal control deficiencies and abnormalities discovered during audits are disclosed in audit reports and improvement progress is tracked; quarterly improvement reports are compiled until said items have been improved.

The three lines of defense in TIAC’s internal control system

  Units Functional Responsibilities
First line of defense Operating units and department director
  1. Annually review operational targets, relevant risks, and effectiveness of corresponding controls in internal control systems.
  2. Implement risk assessments and self-assessments of internal control
  3. Internal control systems and relevant regulations are vigorously observed, and timely reviewed.
Second line of defense Supervisory units and senior management
  1. Review current material issues and identify potential risks
  2. Monitor the establishment of effective internal control systems in all departments, and integrate and implement said systems
Third line of defense Internal audit
  1. Implement risk-oriented audit processes and provide suggestions for improvement of internal control systems
  2. Review self-assessment results for internal control systems in all units.
  3. Track implementation of improvement plans for internal control systems
Financial performance

TIAC’s financial performance reached historical heights in 2019. In terms of revenue, TIAC’s total revenues in 2019 reached 23.516 billion NTD, an increase of 7.24% compared with the previous year. TIAC’s net profits were 8.078 billion NTD, an increase of 10.04% compared with the previous year.

Unit: 100 million NTD

  2017 2018 2019
Operating Revenue 201.24 217.21 234.14
Non-operating income 1.83 0.92 1.02
Total revenue 203.07 218.13 235.16
Total cost and expense (including income tax) 134.95 145.46 154.38
Net income 68.12 72.67 80.78
Contribution to CAA Operating Fund 36.18 38.70 43.02
Allocation to local government 7.94 8.49 9.44
Government agency retention 24.00 25.48 28.32
International Outlook

For the purposes of enhancing TIAC operating standards and align them with those of other airports around the world, TIAC actively participates in international exchange activities and seeks membership in international organizations such as the Airports Council International (ACI). TIAC has participated in international airport surveys (such as ASQ and Skytrax) and organized numerous international exchange activities including signing of sister airport agreements, welcoming international VIPs, and hosting international forums. These international exchange activities facilitate collection of new industry knowledge and allow TIAC to obtain visionary insights and issues relating to the aviation industry which can be used to analyze operational strengths and weaknesses for better decision-making and strategy formulation.

17th Routes Asia event

  TIAC participated in the 17th Routes Asia event (2019) held in Cebu (the Philippines) and the 25th World Routes event (2019) held in Adelaide (Australia) to facilitate talks for the expansion of flight routes. TIAC provided a breakdown of TTIA’s passenger and cargo volumes, described TIAC’s current operational conditions and mid- to long-term plans, and provided case briefings showcasing the potential of different flight routes and flight destinations to aid decisions related to opening of new flight routes.

Opportunities & Challenges among Smart Airports.

  The theme of the Taoyuan Airport Forum 2019 was “Opportunities & Challenges among Smart Airports.” TIAC invited experts from Airports Council International (ACI), International Air Transport Association (IATA), and other benchmark airports such as Chek Lap Kok Airport in Hong Kong, Incheon Airport in Korea, Narita and Kansai airports in Japan, and Munich Airport in Germany to jointly discuss future conditions of new-generation smart airports and share airport challenges and responses.