The FITI Sustainability Development Committee is integrated within the Board of Directors’ governance structure, with the Board assuming the highest management responsibility to ensure that major climate issues are discussed and resolved as part of our overall risk management and operational decision-making.
Regarding organizational structure, the Sustainability Committee members consist of directors and senior executives. The General Manager serves as the Committee Chairperson, appointed by the Board of Directors. The Chief Financial Officer is designated as the Executive Director by the Chairperson. Below the Committee is the Corporate Sustainability Development Center, responsible for driving integrated efforts and coordinating working groups to develop corporate sustainability strategies and goals. This center oversees greenhouse gas inventories, carbon reduction initiatives, energy transition, and low-carbon supply chain management, with regular reports on implementation status submitted to the Board.
Under the committee’s oversight, seven working groups have been established: Green Manufacturing, Environmental Sustainability, Talent & Social Care, Responsible Supply Chain, Customer Relationship, Information Security Management, and Corporate Governance. Each group is led by a group head (director/manager) and is tasked with the implementation of sustainability initiatives for their focus area. Additional groups, such as the TCFD Task Force (Climate-related Financial Disclosures) and CBAM (Carbon Border Adjustment Mechanism) Working Group, are formed as needed for specific projects.
※ Board of Directors: Supervises the Sustainability Committee to ensure effective implementation and oversight.
※ As specified in FITI’s Organizational Charter of the Sustainability Committee, key responsibilities of committee members include:
‧ Formulation and implementation of sustainability policies, systems, management approaches, and specific action plans.
‧ Determination of annual sustainability targets and indicators, strategic directions, projects, and activity plans.
‧ Regular monitoring and review of the implementation effectiveness of annual sustainability targets, strategic directions, projects, and activity plans.
‧ Periodic review of the Company’s sustainability-related policies and Sustainability Report.
Working Groups: Development Goals and Functional Responsibilities
Environmental Sustainability Group
→ Moving Toward Net-zero Pathway
Comply with regulations and international initiatives, address climate action, and advance energy saving and emission reduction programs.
Green Manufacturing Group
→ Reduction and Adaptation in Production Processes
Focus on research, development, and innovation; leverage green technology to ensure products and services comply with international standards.
Corporate Governance Group
→ Climate Risk Management
Responsible for corporate governance compliance; strengthening risk management and stakeholder communication mechanisms to achieve the company's sustainable development goals.
Responsible Supply Chain Group
→ Building a Sustainable Supply Chain
Establishing a sustainable supply chain management mechanism to assist suppliers in meeting local and global green procurement policies.
Customer Relationship Group
→ Net-zero Action Initiative
Addressing customer needs and providing value-added low-carbon solutions and services.
Information Security Management Group
→ Digitalization of Carbon Data
Responsible for digital infrastructure, supporting risk management; ensuring the protection and security of customer and company data and privacy.
Talent & Social Engagement Working Group
→ Talent and Competency Development
Protecting human rights and fostering community engagement; cultivating sustainable corporate citizenship; promoting a diverse, equal, and inclusive workplace.
TCFD Task Force
→ Identify major climate-related risks and opportunities and propose countermeasures
→ Advance scenario analysis and carbon reduction pathways; provide management guidance and set targets
‧ Identify climate change issues relevant to each group and provide management strategies, indicators, and targets.
‧ Propose climate action plans and confirm their effectiveness.
‧ Calculate net-zero roadmaps based on climate action plans.
‧ Track the effectiveness of climate action plans for each group.
CBAM Task Force
→ Establish a product carbon footprint investigation process for third-party verification
→ Enhance supplier carbon emission management capabilities
‧ Investigate the carbon data of raw materials for products subject to EU CBAM.
‧ Assist upstream suppliers in developing product carbon inventory capabilities.
‧ Further collaborate with customers to develop low-carbon manufacturing processes and products.
Linking Senior Executive Compensation to ESG Performance Indicators
Starting in 2025, FITI has integrated ESG performance indicators into senior executive compensation. The Compensation Committee evaluates remuneration based on Total Shareholder Return (TSR) as well as progress on ESG goals. Variable incentives are tied to business performance, representing 60% to 70% of total compensation depending on role and results achieved, with ESG performance contributing 10%. By aligning executive compensation with our ESG commitments, FITI strengthens a top-down culture of sustainability, ensuring that corporate growth and responsibility go hand in hand with the expectations of our stakeholders.