Case study: How Ennostar creates economic value for its stakeholders
Ennostar was founded in 2021 and seeks to be a multinational compound semiconductor investment platform, focused on technology development and manufacturing of compound semiconductors. Enhancing overall revenues and profits while fulfilling the needs of its clients, investors, and other stakeholders, generating sustainable value for all, is a top priority for Ennostar.
This case study is based on the 2021 ESG Report by Ennostar, prepared in accordance with the GRI Standards, that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.
Abstract
Ennostar is committed to creating long-term and stable value for both the company and its stakeholders Tweet This! through continued increases in revenues, profitability, and R&D investments. In order to create economic value for its stakeholders Ennostar took action to:
- create economic value for employees
- create economic value for investors and shareholders
- create economic value for the government
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With this case study you will see:
- Which are the most important impacts (material issues) Ennostar has identified;
- How Ennostar proceeded with stakeholder engagement, and
- What actions were taken by Ennostar to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2021 ESG Report Ennostar identified a range of material issues, such as information security, ethical management, product quality, air pollution management. Among these, creating economic value for its stakeholders stands out as a key material issue for Ennostar.
Stakeholder engagement in accordance with the GRI Standards
The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:
Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.
Key stakeholder groups Ennostar engages with:
| Stakeholder Group | Method of engagement |
| Employees
| · ESG questionnaires and surveys · Internal network messaging system: Used for internal announcements and searches · Strategic planning meetings: Formulate corporate strategic targets and implement relevant plans · Facilitate bidirectional communications with executives: Host communication meetings with section managers and above as well as other senior executives · Grievance channels: Enables employees to report issues; reports are handled by dedicated personnel immediately upon receipt · Labour-management meetings and employee welfare committee meetings: Provide suggestions and negotiate with company executives · Employee suggestions and feedback · President’s mailbox: Provides a channel for all employees to anonymously communicate their thoughts and suggestions directly to the Group President; all letters to this mailbox are read personally by the President and relevant issues are handled and tracked |
| Shareholders/ Investors
| · Shareholders general meetings · Investor conferences · Compliance with all laws and public disclosure of operational conditions, annual reports, and quarterly reports · Spokesperson, deputy spokesperson, shareholder affairs contact, and mailbox for investors · Investor and CSR/ESG section on corporate website; investors can subscribe to receive investor information from Ennostar’s corporate website · Complete corporate governance evaluation procedures in compliance with Financial Supervisory Commission regulations · Apart from participating in investor briefings organised by securities authorities, the Group also discusses and communicates relevant issues with securities authorities · ESG questionnaires and surveys |
| Clients
| · ESG questionnaires and surveys · Official website: Online customer service mailbox · Customer satisfaction surveys · Participation in product exhibitions for direct understanding of customer needs and market developments · Client visits by sales personnel |
| Suppliers/ Contractors
| · ESG questionnaires and surveys · Supplier audits and interviews · Contractor agreements and organisational meetings · Sales departments such as customer service departments, finance departments, and procurement departments serve as communication channels |
| Government Institutes
| · Maintain sound interactions with competent authorities and actively participate in public hearings hosted by competent authorities · Management and identification of laws and regulations · Official documents, project seminars, public information · ESG questionnaires and surveys |
| Media | · ESG questionnaires and surveys · Official website: Online customer service mailbox · Spokesperson and deputy spokesperson |
| Insurance Companies
| · ESG questionnaires and surveys · Official website: Online customer service mailbox |
| Banks
| · ESG questionnaires and surveys · Official website: Online customer service mailbox |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics Ennostar engaged with its stakeholders through questionnaires.
What actions were taken by Ennostar to create economic value for its stakeholders?
In its 2021 ESG Report Ennostar reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2021, Ennostar paid NTD 8,624,345 thousand for employee compensation and benefits.
- Creating economic value for investors and shareholders
- In 2021, Ennostar paid NTD 1,365,881 thousand to investors while earnings per share reached NTD 3.21.
- Creating economic value for the government
- In 2021, Ennostar paid NTD 97,802 thousand in taxes.
Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?
The GRI Standard addressed in this case is: Disclosure 201-1 Direct economic value generated and distributed
Disclosure 201-1 Direct economic value generated and distributed corresponds to:
- Sustainable Development Goal (SDG) 8: Decent Work and Economic Growth
- Targets: 8.1, 8.2
- Sustainable Development Goal (SDG) 9: Industry, Innovation and Infrastructure
- Targets: 9.1, 9.4, 9.5
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References:
This case study is based on published information by Ennostar, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:
https://www.ennostar.com/upfiles/ESG/2021_ESG%20Report_EN.pdf
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