Usually, the industrial estate business operations are relevant to many laws and regulations because this type of business has the impacts towards the economy, society and environment, both directly and indirectly. The Company and its stakeholders, therefore, have emphasized on the compliance with all aspects of applicable laws and regulations. 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.
Compliance with laws and regulations enables the Company to operate transparently, gain credibility, and earn the trust of stakeholders. Monitoring changes in laws and regulations related to industrial estate and related businesses closely will enable the Company to prepare for new legislation that may come. Changes in customer requirements resulting from changes in domestic and foreign laws and regulations enable the Company to adapt and develop products and services to meet those needs in a timely manner.
The following risk management processes were developed based on compliance with applicable laws and regulations in order for the Company to conduct business legally and in compliance with numerous regulations:
Analyzed and identified the legal and regulatory compliance risks throughout the business value chain, by referring to the laws and regulations of each municipality or country in which the Company conducts business.
Assessed the risks that may arise from non-compliance with the law, regulations, or various international standards and determined measures to manage those risks, included the responsibility of the Legal Department and the department that contacts government agencies to carefully monitor changes in laws and regulations in each business location. In order to further encouraged employees and stakeholders to become knowledgeable about the changing laws and rigorously comply, the Company has communicated with them through a variety of channels, including meetings, training sessions, emails, and the intranet.
The executives of all departments are responsible for overseeing the Company’s employees and contractors to ensure that they strictly comply with all applicable laws and regulations. Also, the performance of statutory and regulatory compliance has been regularly audited and assessed.
The Legal Department is responsible for compiling violation cases and the performance of statutory and regulatory compliance, as well as reporting to the management team, the Corporate Governance Committee, the Risk Management Committee, and the Board of Directors, respectively, to consider and decide on stronger governance and compliance mechanisms and disclose the performance results in the Annual Sustainability Report.
In 2022, the Risk Management Committee identified the risk arising from changes in environmental laws and regulations as a corporate risk. The Company has assigned departments directly responsible for this matter, developed a risk mitigation plan, and determined its 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 the past year, which may affect customers in the industrial estates that are engaged in export activities.
In addition, 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, or contractors in 2022. In order to maintain trust among all stakeholders in its ability to conduct responsible and sustainable business, the Company continued to abide by laws, regulations, and international standards.