We uphold the attitude of business ethics and integrity to instill 100% of the Company’s corporate sustainability belief into our DNA. With the global commercialization of business operations, we have to abide by the code of business conduct and ethics, layout R & D patents, pay attention to the protection of cybersecurity and data privacy, and gradually lay the rock for the enterprise's sustainable operation.

Performance highlights

Corresponding SDGs

01

Sustainable Governance and Management Performance

We take "Corporate Governance 3.0 - A Blueprint for Sustainable Development" as the Five year goal of Sustainable Governance and development to improve corporate governance and management mechanism .

Our Sustainable Governance Blueprint

Our Sustainable Performances

Implement a specialized and diverse Board of Directors

The Board of Directors is the highest level of governance and consists of 11 directors, each tenure is 3 years, and the current tenure is from August 5, 2021 to August 4, 2024.The members have abundant experience in and professional knowledge of biology, electronics, food, education, and marketing to provide professional advice on operating judgment, accounting and analysis, operation management, industry knowledge, and international market outlook. The 11 seats of Directors include 3 seats of Independent Directors, accounting for 27.2% of the total number of Directors. The Board of Directors meets at least once a quarter, with the manager and the treasurer present for the consultation, and the audit director was reporting to the Board of Directors on audits. Total 12 Board meetings were held in 2021 with an actual attendance rate of 94.7%.

Board performance and self-evaluation

PharmaEssentia has formulated the “Regulations for the Self-Appraisal or Peer Appraisal of the Board of Directors” to establish performance objectives and evaluation systems. The Board of Directors of PharmaEssentia shall perform internal Board performance evaluation at least once a year and appoint an external professional independent organization to conduct performance evaluation of the Board at the end of every three years. The performance evaluation measures include at least the following five significant aspects. In February 2022, the Directors of PharmaEssentia have completed the 2021 performance evaluations of the Board and its members by internal questionnaire self-evaluations. According to the results of 2021, we have been submitted to the Board of Directors on March 1, 2022, there is nothing needed to be improved.
Before the end of December 2021, PEC has appointed external entity “Taiwan Corporate Governance Association” to evaluate the performance of its Board of Directors from November 1, 2020, to October 31, 2021. The evaluation report contained four recommended improvements; PEC will strengthen the election mechanism of the Board, draft talent development plans for key management functions, build a comprehensive whistleblower mechanism and communication channels, and set up a corporate governance section on its website based on actual operating needs in the future.

Operation of Functional committees

Two functional committees have been set up under the Board of Directors, which are the Audit Committee and the Remuneration Committee. These committees comprise of the Independent Directors, and the Remuneration Committee also has an external expert (Professor Ming-Chuan Hsieh) to jointly supervise and inspect the management mechanism of Directors and Managers.

Internal controls and auditing

The audit office of the Company is directly subordinated to the Board of Directors with full-time auditors. The auditors report to the Audit Committee and the Board of Directors on the quarterly execution of the audit operations. Through routine and ad hoc inspections, the internal auditors grasp the operating status and potential risks of internal control functions and assist the Board of Directors and management to fulfill their responsibilities to implement the corporate governance system.


  Corporate Governance Officer Implementation Status  

 According to Article 20 and 23 of the Taipei Exchange Directions for Compliance Requirements for the Appointment and Exercise of Powers of the Boards of Directors of TPEx Listed Companies and Article 3-01 of the Corporate Governance Code, the Audit Committee and the Board of Directors appointed Ms. Snow Chang, the deputy director of Finance and Accounting Department, as the Corporate Governance Officer on December 3, 2021. The duties performed by the Corporate Governance Office in 2021 are as follows: 

 1.      Handling matters relating to board meetings and shareholders meetings according to laws 

 2.      Producing minutes of board meetings and shareholders meetings 

 3.      Assisting in onboarding and continuous development of directors and supervisors

 4.      Furnishing information required for business execution by directors and supervisors 

 5.      Assisting directors and supervisors with legal compliance 

 6.      Other matters set out in the articles or corporation or contracts


 Continuing Education Training of Corporate Governance Officer in 2021

Host By
Training/Speech Title
Date
Duration
Accounting Research and Development Foundation
Global Trend of Financial Supervision and Case Study of Financial Crime by Financial Statement Frauds
2021/12/9~2021/12/10
      3
Accounting Research and Development Foundation
Introduction and Analysis to Modifications in Illustrative Examples of IFRS 2020
2021/12/9~2021/12/10
      3
Accounting Research and Development Foundation
Legal Responsibilities in Business With the Enforcement of “The Taxpayer Rights Protection Act” and Practical Case Study
2021/12/9~2021/12/10
      3
Accounting Research and Development Foundation
New Trends and New Thinking: Evaluation of Business’ Sustainable Performance under ESG
2021/12/9~2021/12/10
      3


Total Hours
      12
02

Compliance and Business Ethics

Biopharmaceutical is a highly regulated industry, and all business conduct and products of the Group, from R&D, clinical trials, drug manufacturing and production, regulatory marketing approval review, to post-marketing safety monitoring, shall comply with relevant regulations from various countries.

Our Global Legal Compliance Strategy Framework


   Action the Principles of Ethical Corporate Management

We must adhere to the Principles of Ethical Corporate Management in every aspect of our operations and production. The Company’s Code of Integrity promotes the objectives: specifications of anti-corruption, corporate social responsibility, trade secrets, and conflicts of interest.

 
Specific measures for prohibition against insider trading and material nonpublic information

The company has formulated the rules and regulations of " Operating Procedures for Handling Material Nonpublic Information and Preventing Insider Trading ". The Procedures has been approved by the board of directors, and the relevant specifications have been disclosed on the company's website. Thereby preventing improper information disclosures, ensuring the consistency and accuracy of information released to the public, and strengthening the prevention of insider trading.

  • Date:11/15/2021 
  •  Training topic:The latest trends and guidance in Carbon Border Tax、Climate Change and Net-Zero Emissions: Challenges and Opportunities of Business Operations 
  •  Sessions:1
  •  Participants:All of the board of directors
  •  Number of Participants: 11 
  •  Total training hours:66
  • Date:12/01/2021 
  •  Training topic:Laws and regulations on Insiders 
  •  Sessions:1   
  •  Participants:General Manager & Head of Bioprocess Dept. (COO)、Financial & Accounting/Associate Director、Chief Medical Officer (CMO)、Human Resources Director 
  •  Number of Participants: 9 
  •  Total training hours:18 

Principles of Ethical Corporate Management

The company has formulated the rules and regulations of "Principles of Ethical Corporate anagement" and "Procedures for Ethical Management and Guidelines for Conduct". The Procedures and Guidelines have been approved by the board of directors , and have established channels for stakeholder communication and whistleblowing on the company's website and the intranet to protect the rights and interests of all shareholders.

【Annual implementation】

The company employs external professional lawyers to strengthen the education and training of all colleagues on the integrity management policies that the IPO companies should abide by. The implementation is as follows:

  • Training topic:Legal Risk Arising from  Dishonest Workplace Conduct 
  • Date of meeting:12/22/2021 
  • Sessions:1 
  • Participants:all colleagues of Headquarter and Panco 
  • Number of Participants: 198 ; Ratio of Participants: 85.71% 
  • Total training hours:297 

【Reporting of Violating Ethical Corporate Management】

  • Stakeholder Contact:Human Resource unit of PharmaEssentia
  • Telephone:+886.2 26550-7688
  • Email Box:hr@pharmaessentia.com
03

Data Security and Privacy Protection

PharmaEssentia attaches importance to the security control of confidential business secret information at each stage of the product life cycle. We expect to establish an Information Security Committee in 2022 to strengthen data security and hacking prevention. Besides enhancing both software and hardware, we also regularly promotes its information security policy, organizes training, audit, and review every year to strengthen the control of vulnerability assessment, penetration testing and encryption mechanism, so as to ensure the privacy and data security of customers, patients and employees.

Data Security Management Policy

In order to strengthen the data security protection & management mechanism, and comply with Article 9 of the " Regulations Governing Establishment of Internal Control Systems by Public Companies ", the company has established “Procedures for Data Security Management” and approved by the Board of Directors on May 13, 2022. We set up a Cyber Security Promotion teamt to promote, coordinate, supervise and review the data security management. The annual policies and objectives shall be approved by the supervisor above the General Manager, and be reviewed regularly to effectively convey the importance of employees.

【Annual implementation of Data Security management】

As the group expands its global commercialization, PharmaEssentia has planned to build an IT team and will recruit relevant professionals. The resources invested in Data security management are as follows:

  • Personnel/operational invested: At least 5 people for IT team
  • Expense invested: More than 10 million NT$ has been invested in upgrading software and hardware equipment
  • Education & Training: According to the annual hacking prevention plan, we invite external professional lecturers of CHT Security Co., Ltd. with rich experiences to conduct two social engineering online education & trainings for all employees for the first time. To formulate employees’ awareness of information security and to practice such awareness in our day-to-day operations. Employee feedback is used to ensure employees’ recognition and responsibility to data security management.
  • Training topic:The data security and privacy protection social engineering online education & training
  • Date of Training:3/17/2022 &3/25/2022
  • Sessions:2
  • Participants:All colleagues of Headquarter and Subsidiaries: Panco / Beijing / Hong Kong. Total Invitees: 258
  • Number of Participants: 185 / Ratio of Participants:71.71%
04

Comprehensive management of intellectual property rights

PharmaEssentia has formulated the “Intellectual Property Rights Management and Utilization Regulations,” which includes intangible rights and property including patents, trademarks, copyrights, and trade secrets. To make our intellectual property (IP) management system more comprehensive, we are committed to patent application during the product life cycle management, risk control of IP, and new drug IP utilization strategies. Besides closely following the regulations for R&D cycle and complementing the Operational Procedures for Acquisition and Disposal of Assets to protect PEC’s R&D personnel’s intellectual property from infringement, we can also ensure that an innovation becomes PEC’s intellectual property and that our intellectual property can be widely applied for and registered internationally. So that more people in need can know about and have access to the new drugs, and that the IP rights of others will not be infringed upon.

Management and Statistics of Patents and Trademarks

【Annual implementation of IP management 】

In line with the indices from Corporate Governance 3.0 evaluation, PharmaEssentia's Intellectual Property department regularly reports annual executions of the Intellectual Property Management Plan, which is correlated with our business objectives, to the Board of Directors on an annual basis. Furthermore, to demonstrate our determination to practice intellectual property management as well as our commitment to intellectual property as a leading new pharmaceutical company, the newly added rules related to intellectual property rights management in the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies have also been incorporated into PEC's internal control procedures. Executions of the Intellectual Property Management Plan in 2021 has been reported to the first Board of Directors meeting convened on March 1, 2022 and have been acknowledged and approved by all Directors.

The Chapter of Business ethics , integrity and compliance

We uphold the attitude of business ethics and integrity to instill 100% of the Company’s corporate sustainability belief into our DNA. With the global commercialization of business operations, we have to abide by the code of business conduct and ethics, layout R & D patents, pay attention to the protection of cybersecurity and data privacy, and gradually lay the rock for the enterprise's sustainable operation.

Downloads Business ethics , integrity and compliance Report