The operations that are inconsistent to various laws or regulations of either the Company itself or its suppliers and contractors may lead to Company's financial and reputation damage, the confidence of stakeholders and the acceptance of the neighboring society and communities resulting to the Company’s future operations and growth. Presently, the rules and regulations including laws related to the industrial estate business and related businesses have been changed to become increasingly strict and diversified causing the compliance risk as one of the Enterprise risks required to be prudently managed.
Analyze and identify the legal and regulatory compliance risks throughout the business value chain by referring to the laws and regulations of each locality or country where the Company enters into the business.
In 2021, the Risk Management Committee identified the risk arising from changes in environmental laws and regulations as a corporate risk. The Company has assigned a unit to be directly responsible for this matter, as well as developed the risk mitigation plan and determined risk appetite to closely monitor and evaluate the risk. This effort has been made because of many newly-enacted environmental laws and changes in international multilateral environmental agreements in recent year, which may affect clients in the industrial estates that are engaged in export activities.
In 2021, the Company had no incidents of non-compliance with laws related to the industrial estate business and no incidents of non-compliance with economic, social, and environmental laws by employees, suppliers, and contractors. The Company continued to abide by laws, regulations, and international standards to create confidence among all stakeholders in its ability to conduct responsible and sustainable business. (Disclosure 307-1, 419-1)