Corporate Sustainability
Corporate Sustainability
Sustainable Development Governance Framework
To deepen corporate sustainable development and practice corporate social responsibility, Yuan Yu has established the Board of Directors as the highest decision-making body for promoting sustainable development. In early 2025, the company set up the “Sustainable Development and Nomination Committee” under the Board of Directors, combining it with the ESG Sustainability Team established in September 2023. This committee is responsible for the planning, promotion, and integration of the Group’s ESG sustainable development efforts. It reports to the Board of Directors at least once a year on the progress of sustainable development and future work plans. The Board of Directors supervises the promotion and benefits of sustainable development initiatives. The sustainability performance for the year 2024 was reported to the Board in December 2024 by the original ESG Sustainability Team.
Sustainable Development and Nomination Committee
The Sustainable Development and Nomination Committee is subordinate to the Board of Directors. Its members are appointed by the Board and consist of senior executives and independent directors. The members collectively elect one person to serve as the convenor. The committee meets at least once a year and is responsible for reviewing the sustainable development direction, strategy, and goals, evaluating related management policies and specific implementation plans, and overseeing sustainability disclosures and the review of the sustainability report.
The Sustainable Development and Nomination Committee has several implementation sub-teams, with responsible departments collecting stakeholder concerns on topics such as environmental protection, occupational safety, supply chain management, labor rights, operational performance, and corporate governance. The company respects stakeholder interests and has set up a dedicated stakeholder section on its website to appropriately respond to important sustainability issues of concern to stakeholders.



Cmi Group’s Corporate Social Responsibility Commitment
Our company takes on corporate social responsibility and strives for sustainable development. We are committed to being responsible to all stakeholders through fair and responsible actions, improving the quality of life for employees and their families, the local community, and society at large. We actively participate in social welfare activities, pay attention to the global ecological environment, and maintain the balance of social and environmental ecology. With a proactive attitude and a spirit of continuous improvement, we aim to achieve sustainable operations.
Aspects of Corporate Social Responsibility
- Implementing Corporate Governance Our company has established a “Sustainability Development Code of Practice,” committing to fulfill corporate social responsibilities and adhere to the guidelines of this code.
- Developing a Sustainable Environment During production, the company generates waste and defective products, which are handled and recycled by authorized waste management companies. We continuously improve production processes and office environments with a focus on energy conservation and carbon reduction. We integrate robust health and safety management practices into all business aspects according to ISO 14001 and ISO 45001 standards, aiming to create safe working conditions and a healthy work environment for all employees. Annual health check-ups for workers and emergency response drills, such as fire drills and chemical spill handling exercises, are conducted to enhance workers’ response capabilities.
- Maintaining Social Welfare
- The company has established work rules and related personnel regulations, which cover basic wages, working hours, leave, pension benefits, labor and health insurance, and occupational injury compensation in compliance with labor standards laws. A labor welfare committee is set up to handle various welfare matters. If the company is profitable annually, 3% to 5% of the profits are allocated for employee compensation, and no more than 2% for director and supervisor compensation. Compensation policies are based on individual abilities, contributions to the company, performance, and correlation with business performance, ensuring equal pay for equal work and equal promotion opportunities. As of the end of December 2024, women make up 67% of the total workforce and 56% of the managerial staff within the group.
- The company adheres to relevant regulations and international standards for marketing and labeling of products and services. Sales products are accompanied by declarations as per customer requirements, including compliance with international regulations such as UL, EU REACH, RoHS, and halogen-free requirements. We also maintain confidentiality agreements regarding customer privacy, provide standardized and effective complaint procedures, and define responsibilities and related provisions in contracts with customers. For product-related issues, customers can directly contact the business representatives provided on our website.
- We require suppliers to fulfill their corporate social responsibilities and avoid negative impacts on the environment and society.
- Supplier evaluations are conducted based on the company’s “Supplier Basic Information Form” and “Vendor Evaluation Form,” with evaluations carried out at least annually.
- Suppliers must comply with local government regulations on air pollution control, water pollution control, waste and resource management, and other environmental protection laws.
- We will strengthen partnerships with suppliers who perform well in areas such as quality improvement, cost reduction, delivery assurance, and sustainability performance.
Sustainability Development Progress
To advance corporate sustainability and fulfill corporate social responsibility, CMI has designated the Board of Directors as the highest decision-making body for sustainability matters. In early 2025, the Company established the Sustainability and Nomination Committee under the Board,integrating the ESG Task Force originally formed in September 2023. This committee is responsiblefor planning, promoting, and coordinating the Group’s ESG sustainability initiatives. It reports to the Board at least once a year on sustainability performance and future work plans. The ESG Task Force presented the 2024 sustainability implementation results to the Board in December 2024

The compensation of CMI’s senior executives is determined based on the company’s compensation standards, as well as the individual’s academic and professional background and managerial performance. The process for setting remuneration considers the company’s overall operational performance, industry-related operational risks and future development trends, and ESG performance. Additionally, it takes into account whether the executive has been involved in any ethical misconduct or incidents that negatively impact the company’s image or reputation, internal management failures, or employee malpractice. Executive compensation is ultimately determined through a comprehensive evaluation of goal achievement, profitability, operational efficiency, and individual contribution
Risk Management
The CMI Sustainable Development and Nomination Committee conducts risk assessments of environmental, social, and corporate governance issues related to the Company’s operations by means of an online questionnaire, in accordance with the principle of materiality. For topics that may have significant impacts on operations, subsequent risk control measures are implemented. The results of execution are reported to the Board of Directors annually. The Board reviews the Company’s future ESG strategies and provides relevant guidance, while responsible departments are tasked with implementation and performance tracking. The identified material risks are as follows:
