Sustainability
TTY Biopharm’s main vision and greatest social responsibility is improving the quality of human life with scientific innovation. By pursuit of excellent operating performance, TTY Biopharm also embraces the lofty principle of “benevolent corporate operations”, and which represents the core values of the Corporation. Moreover, TTY Emphasizing the operational sustainability with the direction of inclusiveness and economical sustainability.
In response to the trend of corporate social responsibility in recent years, TTY has issued a corporate social responsibility report for 8 consecutive years (according to the Corporate Governance 3.0- the Blueprint of Sustainable Development, the CSR Report will now be known as the Sustainability Report starting this year.) Through this report, we demonstrate to all the stakeholders by under the goal of sustainable management, the performance data and related management methods implemented for corporate governance, maintenance of patients’ health and safety, responsible products and manufacturing, environmental protection, supply chain management, employee care, and social welfare. We also propose future improvement goals to be implemented in corporate citizenship through concrete actions.
Policies & Goals
| Short-Term Goal | Mid-Term Goal | Long-Term Goal | |
|---|---|---|---|
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Environmental
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1. Organize 2 environmental sustainability promotions every year. 2. To continue the ISO 14064-1 GHG inventory standards and acquire certification. 3. Waste management policy- waste resources recycling to reach 5 tons in total. 4. 2% annual electricity conservation rate. |
1. To continue the management over carbon emission, wastes and water usage. 2. To explore the technologies that improve operation-related environmental sustainability, evaluate the purchase of green energy and energy-efficient equipment to minimize eco-impact. 3. Carry out water resources recycling. 4. Paper-free office. |
1. Green building plan for future if applicable. 2. Establish a green supplier management system to quantify sustainability indicators. 3. Join climate initiative organization or alliance, and declare environmental sustainability, increase ratio of renewable energy. |
|
Social
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1. Promote health prevention, pharmaceutical knowledge and sustainable concept incorporated with campus talent system. 2. Promote employee health through lectures and activities, a friendly work environment, and protection against human rights infringement. 3. To work with NPOs and NGOs on health education, the welfare of vulnerable groups, and the environment. |
1. Collaboration with NGOs and NPOs continued. 2. Lectures and activities to raise health and human right awareness. 3. Provide health check and consult to ensure employees’ health and safety. |
1. Work with medical institutions and other businesses to establish an online medical inquiry application, and expand service targets. 2. Design high-demand products and services that respond to climate change and the changing environment. |
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Governance
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1. More than 60% of suppliers have committed to ESG initiatives. 2. Reinforcement of corporate ethics inspection including external conflict/avoidance of interest and those during marketing campaigns. |
1. Strengthen the connection between sustainability performance and senior management salary. The performance of the senior management team is evaluated against ESG work. 2. Assessment to incorporate TNFD. |
1. Create opportunities for sustainable reformation. 2. Cultivate the training pool to promote corporate ethics. |
Since 1960, TTY has been committed to navigating the evolving landscape of medical science and advancing bio-tech pharmaceutical developments. In recent years, TTY has focused on the technical platform for complex generic formulations as a means to fortify our independent capabilities to produce new drugs. It is our mission to improve the quality of human life with scientific innovation as part of our commitment to corporate social responsibility. These achievements have not only established a good foundation for our future, but reflect the successful story of a Taiwan business entering the global arena.
Under the leadership of CEO Sara Hou, TTY has focused on international expansion with detailed developmental goals. The current key focus is consolidating our corporate culture with integrity, accountability, professionalism, and compliance. This is essential for operational sustainability and to keep TTY on the right path. As the chairman of TTY, I will work with our management team to embrace business transformation. I believe our professional managers are able to pursue excellence and drive the business to international horizons and achieve even greater success.
With the vision of “improving the quality of human life with scientific innovation” in mind, we are focused on the concerns of people. Our ESG roadmap starts from the demands of stakeholders and 3 major areas – Steady Development of the Company, Realization of a Healthy Society, and the Promotion of the Green Transformation. We aim to create value for stakeholders, solutions for medical and patient relationships, and fulfill our corporate social responsibility.
Under the leadership of CEO Sara Hou, TTY has focused on international expansion with detailed developmental goals. The current key focus is consolidating our corporate culture with integrity, accountability, professionalism, and compliance. This is essential for operational sustainability and to keep TTY on the right path. As the chairman of TTY, I will work with our management team to embrace business transformation. I believe our professional managers are able to pursue excellence and drive the business to international horizons and achieve even greater success.
With the vision of “improving the quality of human life with scientific innovation” in mind, we are focused on the concerns of people. Our ESG roadmap starts from the demands of stakeholders and 3 major areas – Steady Development of the Company, Realization of a Healthy Society, and the Promotion of the Green Transformation. We aim to create value for stakeholders, solutions for medical and patient relationships, and fulfill our corporate social responsibility.
To ensure Steady Development of the Company, our strong foundation for complex generics development, self-developed quality of new formulas, and reliable pharmaceutical distribution capabilities have led us to positive partnerships in filling ASEAN, US, and EU demands, contributing to the international market with MIT scientific strength. To establish a healthy corporation, our diverse board members, legally compliant practices, and sound trainings fully support the honesty and ethics of the brand. As a corporation, we will continue to grow through corporate governance, including promoting a strong corporate culture among our staff members, implementing TCFD, receiving ISO 45001 certification, and being in the top 5% of OTC companies for the 7th year in a row in the 2023 Listed and OTC Evaluation System. All of these achievements demonstrate our ambition to be a steadily developing enterprise.
Health and People are 2 important elements of TTY. We are committed to promoting these 2 values in our business operations, from personal hygiene education, providing services to social organizations, public healthcare, and disease prevention, to the development of health-related bio-tech manpower. In terms of Realization of a Healthy Society, we have organized the Regional Care for the Cancer-affected Healthcare Education Project for over 20 years, and participated in more than 40 school promotions in 2023. The three-year toxic-free rice purchase project is now in its 2nd year since it was launched in 2022, and aims to promote the idea of “you are what you eat” with charity organizations through rice donation. Our volunteers have also partnered with NGOs to promote health topics.
Our Summer Internship Program also celebrated its anniversary of 15 years since its establishment. The program aims to cultivate biotech talent for Taiwan and is now known to many local and international academic departments. To strengthen our national healthcare system, we donated imported cellular and adjuvant influenza vaccines to the ICDF and Taoyuan City to protect frontline healthcare workers, NGOs, and vulnerable groups from infectious diseases, and facilitate cross-institutional cooperation by enhancing the life-long health benefits of society.
Environmental sustainability is a priority of all our activities as part of our mission to promote the green transformation. Other than adopting GHG inventory and verification, and process optimization to reduce energy consumption, we have also implemented green procurement, planned to use eco-friendly packing materials, and are reinforcing waste management. In addition to low-polluting green production, our suppliers are required to fulfill our ESG commitment, attracting like-minded corporations to establish a sustainable and green business network.
TTY is focusing on the development of oncology, antibiotics for severe illnesses, vaccine development, and public healthcare. We provide reliable, professional, and diversified medical products and services to our stakeholders, which has made us a leader of biotech pharma in Taiwan. Looking to the future, TTY will leverage our strength and step into the international arena as a representative of corporations from Taiwan. We hope to partner with like-minded overseas businesses to deepen our brand value and impact and become a steady power for the sustainable development of TTY and society as a whole.
Lin Chuan
TTY Biopharm Chairman
TTY Biopharm Chairman
To properly reflect on impacts to the economy, environment, and society of TTY operations, and issues that may affect stakeholders' decision-making, we gather industrial information, pay close attention to external trends, and survey TTY senior leaders. The following 17 topics of concern, considering the level of impact, are incorporated into the questions in the questionnaires on topics of concern of: Economic performance, ethical management, marketing ethics, talent attraction and retention, subject safety, occupational safety and health, social participation, drug safety, access to medicine, counterfeit drugs, reasonable pricing, supplier management, response to climate change, information security, sustainable development strategies, water resource management, and waste management.
To truly understand the needs and expectations of stakeholders through a diverse range of communication channels, TTY communicates through everyday business dealings, industrial, government, and academic exchanges, routine surveys, and the results of 32 questionnaires completed by senior management and 76 by external stakeholders to identified the 11 material topics accordingly. The priority, which is quite far from that of the previous year, follows stakeholders' level of concerns listed in order: Economic performance, talent attraction and retention, access to medicine, sustainable development strategies, counterfeit drugs, ethical management, drug safety, subject safety, reasonable pricing, supplier management, and marketing ethics.
To truly understand the needs and expectations of stakeholders through a diverse range of communication channels, TTY communicates through everyday business dealings, industrial, government, and academic exchanges, routine surveys, and the results of 32 questionnaires completed by senior management and 76 by external stakeholders to identified the 11 material topics accordingly. The priority, which is quite far from that of the previous year, follows stakeholders' level of concerns listed in order: Economic performance, talent attraction and retention, access to medicine, sustainable development strategies, counterfeit drugs, ethical management, drug safety, subject safety, reasonable pricing, supplier management, and marketing ethics.
Material Topic Management Guideline and Importance
| Material Topic | Management Guidelines and Elements | Importance to TTY |
| Economic Performance | Maintain stable operation is required for a sustainable operation. | TTY is navigating inclusive, sustainable economic growth, and is accelerating the development of generic drugs of specialty dosage forms and new drugs of high barrier and economic value, as well as unmet medical needs, improving the quality of human life with scientific innovation. |
| Attracting and Retaining Talent | Improve the momentum of the corporate growth. | Our talent is our foremost asset. TTY is a friendly workplace, promotes learning, and is an inclusive, innovative incubator where people envision self-positioning and self-value. A comprehensive education system and tailored training plans for employees of high potential and successors, through attract and retain talent so we are well prepared for a changing market and improving our technologies and innovations. |
| Access to Medicine | Ensure to have the high-quality, safe, effective and affordable medicines. | Health promotions or lectures and partnership with NPOs/social organizations dedicated to disease awareness of illness prevention. We worked with the CTOC to fight the flu with 1,000 flu vaccines in year 2022. |
| Sustainable Development Strategies | Enhance corporate governance to reach sustainable operation. | The Sustainable Development Committee (SDC), ethical management implementation of CSR as a core value, and better planned corporate responsibility to drive our sustainable goals. |
| Counterfeit Drugs | Focus on drug safety management, prevent patients from obtaining unsafe counterfeit drugs without unknown conditions, and maintain product traceability, and avoid counterfeiting and related problems from occurring in the supply chain. | All raw materials are sourced from qualified suppliers, and customers of the drug supply chain can be tracked via shipping records. GPS is installed in transportation of drugs to ensure quality of delivery to the designated destination and user safety. The qualified GDP logistic services shows our commitment to intact packing and content quality, eliminating counterfeits in the supply chain. |
| Ethical Management | Strict practice is especially relevant to stakeholders. | The pharmaceutical business works closely with the national economy and people's health, and drives environmental sustainability. In light of this, the Ethical Management Promotion Center takes responsibility for ethical operations and the holistic development of our corporation, as well as the setup of risk assessment procedures to fortify internal control. The third version of “Procedures for Ethical Management and Guidelines for Conduct” of March 2020 continues to prevent dishonesty, bribery, and illegality by directors, managers, and employees. |
| Drug Safety | Drug safety control to make sure quality, safe and effective products are accessible to users. | The pharmaceutical business is directly related to the life and health of users. The API dictates the effectiveness and safety of preparations. As such, TTY uses discretion in reviewing and managing API suppliers of US/EU generic drug makers, which are required to have Taiwan DMF registration, cGMP and PIC/S GMP. TTY's key products fully comply with applicable health and safety regulations. |
| Subject Safety | Enhance quality control of clinical trials in highest standards regarding medical care quality and patient safety, rights, and data credibility. | Development of drugs in TTY follows the Human Subjects Research Act and the Guidance for Good Clinical Practice. Human research and clinical trials for cancer drugs have been approved by the Ethics Committee and regional health authority. Individual cases are insured to protect test subjects' rights. We also have a standard procedure for clinical trial operations, which is executed by fully trained clinical specialists to ensure drug use safety. |
| Reasonable Pricing | To ensure the price is covered by the NHI, and the price adjustment also follows the National Health Insurance Act, fulfilling the goal of quality, safe, and effective drugs at reasonable prices. | TTY operations strictly comply with government regulations and controls to provide safe, effective products at the best quality and reasonable price. Our dedicated team is devoted to quality generic drugs, and applies NHI prices that are fairer to the original makers to balance NHI financial impact. |
| Supplier Management | Enhance management so that the supply chain conforms to laws and regulations, values quality and self-discipline, and improves overall competence and operation flexibility. | TTY evaluates vendors' financial status, organization management, realization of CSR based on Quality Assurance, Stable Production Capacity, Cycle Time Reduction, and Sustainability as a Goal. The system is referred to the Supplier Management mechanism. Annual assessments and risk ratings are given to existing suppliers to facilitate graded management. Questionnaires are distributed to suppliers to evaluate their sustainability. The insight of suppliers' overall condition serves as a reference for each factory when determining supplier qualification. |
| Marketing Ethics | Holding the Company’s ethical operations and regulations by engaging in business with TTY, and realize proper and sustainable business operations. | TTY regards patient medical wellbeing and care as its foremost concern. We adopt business guidelines and codes of conduct following ethical management and health care ethics to ensure good business operations and a sustainable future. |
TTY echoes the 17 Sustainable Development Goals (SDGs) of UNDP (United Nations Development Programme), and implements on the three aspects of corporate governance, social participation and environmental sustainability, with specific management guidelines and beliefs. A “Material Topics of Concern Survey” was launched to enhance the communication and interaction between stakeholders and TTY. We identified the 16 major issues by a diverse range of communication channels with the stakeholders that correspond to the 17 SDGs, and focus on 7 SDGs. Those included SDG 1. No poverty; SDG 3. Good health and well-being; SDG 4. Quality education; SDG 6. Clean water and sanitation; SDG 8. Decent work and econimic growth; SDG 13. Climate action; and SDG 16. Peace, justice and strong institutions for the goals as the main development direction in 2023.
SDGs Highlights:
| Main Aspects | SDGs Index | Practice Actions |
| Environmental |   |
• Effluent discharges and emissions within and far lower than legal standards • 13% less total waste (43.27 tons) than last year • 30% less hazardous waste (28.43 tons) than last year • Incorporated and passed for ISO 14064-1 GHG Inventory System • 11 energy-saving measures
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| Social |     |
• Purchased 942 food packages produced by Yu-Cheng Foundation (YCSWF). • Purchased 29,100 packets of Himalayan Salt produced by YCSWF as 2023 shareholder meeting souvenirs. • Awarded 540 scholarships to students of cancer-affected families. • Sponsorship for 24 “Hope Foundation for Cancer Care” camps. A total of 598 participants. • Subsidize 969 individuals to receive hospice care at home and respite care. • Provided 628 cellular influenza shots and adjuvant influenza shots to ICDF and volunteers. • Free cellular influenza and adjuvant influenza shots for 803 staff and their first-degree family members in 2023. • 104 staff members received special physical checks and no level 3 management result was examined. • Organized Summer Internship Program for 16 consecutive years with 417 participants over the years. • Organized 41 cancer programs on remote campuses. • Organized health education with a total of 6,871 cancer patients and their family members attended. • Organized 29 sessions of osteoporosis and bone health lectures with a total of 2,930 participants. • Entered the 2nd year of the 3-year TTY Rice project, and donated a total 4,000kg TTY rice. • All key products passed relevant health and safety compliance. • ISO 45001 Occupational Safety and Health Management System certified. |
| Governance |  |
• The average salary of female entry-level employees is 1.43 times that of the basic salary, and 1.43 times for male employees. • 139 drug licenses. • 35+ drugs are under NHI coverage. • TTY, relevant material suppliers, and logistic partners are GDP-certified operators. • NT$1.5 billion went into drug development in the past 5 years. |
Each TTY department communicates with stakeholders through normal business dealings, routine investigations, interview analysis and other methods. The Material Topics to different stakeholders differ according to the nature of business. Therefore, we truly understand the needs and expectations of stakeholders through a diverse range of communication channels, and take into consideration of their perspectives to adjust our operations management. Moreover, we also provide appropriate responses to stakeholders' key concerns.
The Sustainable Development Organization Structure
To realize corporate governance, environmental sustainability, social welfare, corporate sustainability, and CSR, on October 7th, 2019, the Sustainable Development Committee was established under the Board of Directors with 5 members nominated from the directors based on the BoD resolution. Under the Sustainable Development Committee, the CEO acts as the convener, while the Financial Department ensures that the associated policies are promoted appropriately, and the team makes regular reports to the BoD after reporting to SDC.
With respect to the various sectors of ESG, the Sustainable Development Committee comprises 4 teams of Corporate Governance, Sustainable Environmental, Social Welfare, Sustainable Information Disclosure to enact the responsibility of proposing and executing the relevant policies, systems, relevant management guidelines, and specific action plans. To maintain stakeholders’ reasonable requests and expectations, each team proposed the performance results and future advanced goals of the sustainable topics that they in charge of respectively. It aims to promote business management continuously and duty of social responsibility.
Sustainable Development Organization established the implementation plans for the following year by the end of every year, and proposed to SDC and BoD. The implementation of year 2023 has been reported to SDC and BoD on March 8, 2024 for review, and the 2024 action plan has been reported and approved on November 3, 2023 before executed.
Identification of Stakeholders
TTY references the five principles of the Stakeholder Engagement Standard, AA1000SES 2011, to identify the key stakeholders. The five principles are as follows: (1) Dependency, (2) Responsibility, (3) Tension, (4) Influence, and (5) Diverse Perspectives. The 8 stakeholders identified this year include the government, investors, customers (including hospitals and medical institutions, patients, manufacturers, and consumers), employees, suppliers, the local communities, NPOs/NGOs and the media.
TTY references the five principles of the Stakeholder Engagement Standard, AA1000SES 2011, to identify the key stakeholders. The five principles are as follows: (1) Dependency, (2) Responsibility, (3) Tension, (4) Influence, and (5) Diverse Perspectives. The 8 stakeholders identified this year include the government, investors, customers (including hospitals and medical institutions, patients, manufacturers, and consumers), employees, suppliers, the local communities, NPOs/NGOs and the media.
Communications with Stakeholders
Each TTY department communicates with stakeholders through normal business dealings, routine investigations, interviews, and questionnaires analyzing their Material Topics of Concern. The topics of concern of different stakeholders vary according to the nature of business; therefore, we looked into the needs and expectations of stakeholders through a diverse range of communication channels, including a year 2022 survey which totaled 108 valid returns, to delve into the issues that grabbed their attention. TTY also took into consideration of stakeholders’ perspectives to adjust operations management. Moreover, we provide appropriate responses to stakeholders' key concerns.
Each TTY department communicates with stakeholders through normal business dealings, routine investigations, interviews, and questionnaires analyzing their Material Topics of Concern. The topics of concern of different stakeholders vary according to the nature of business; therefore, we looked into the needs and expectations of stakeholders through a diverse range of communication channels, including a year 2022 survey which totaled 108 valid returns, to delve into the issues that grabbed their attention. TTY also took into consideration of stakeholders’ perspectives to adjust operations management. Moreover, we provide appropriate responses to stakeholders' key concerns.
Material Topics of Concern
The following table shows the 2023 achievement with stakeholders, which is presented on March 8, 2024, by Sustainable Development Promotion Center to Sustainable Development Committee (SDC)：
The following table shows the 2023 achievement with stakeholders, which is presented on March 8, 2024, by Sustainable Development Promotion Center to Sustainable Development Committee (SDC)：
| Stakeholders | Material Topics of Concern | Engagement Method | Communication Frequency | Communication Performance |
|---|---|---|---|---|
| Government Agencies |
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Visits; Phone; Official letters; Email; Dissemination; GIA (Government, Industry, Academy seminar); Stakeholder Sustainability Topics of Concern Survey | Irregularly |
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| Employees |
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Annual performance interviews and assessment Labor management meetings Personnel announcements; Intranet; Sexual harassment complaint channel; Infringement reports; Stakeholder complaint mailbox; Orientation plan and satisfaction survey; Employee welfare committee; Internal education training and e-learning; External education training subsidies; Stakeholder Sustainability Topics of Concern Survey |
Twice annually Quarterly Irregularly |
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| Customers |
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Exhibition; Academic activities; Educational seminars; Academic platforms; Clinical trials; Factory visits & inspections; Visits; Phone; Email; Letter; Stakeholder Sustainability Topics of Concern Survey | Irregularly | TTY provide more high-quality products and services that meet market needs, TTY interacts with domestic and foreign customers, including via:
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| Investors |
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Annual general meeting; Annual report Quarterly financial report Operational overview announcements Investor conferences Material information announcements; Press releases; Corporate website; Phone; Email; Investor relationship mailbox; Stock affairs and investor relationship contact; Reception of domestic and foreign analysts; Stakeholder Sustainability Topics of Concern Survey |
Annually Quarterly Monthly Quarterly or more frequently Irregularly |
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| Suppliers |
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Supplier questionnaire survey; Supervision on the validity of supplier quality assurance; Supplier audit Email; Phone calls; Visits; Stakeholder Sustainability Topics of Concern Survey |
Annually Irregularly |
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| Local Communities |
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Email; Visits; Phone; Meetings; Education seminars; Stakeholder Sustainability Topics of Concern Survey | Annually or Irregularly |
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| NPOs/NGOs |
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Activity participation; Email; Visits; Phone; Meetings; Stakeholder Sustainability Topics of Concern Survey | Irregularly |
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| Media |
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Media visits; Phone; Press conference; Media press conference; Brand event; Interview; Visits; Stakeholder Sustainability Topics of Concern Survey | Irregularly | To guide media stakeholders to understand the dynamic development of the Company's overall operations and product layout, communication is as follows:
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