Public Policy and Membership in Associations

Public Policy and Membership in Associations

Donation and Political Contribution Policy

Our donations are based on considerations to give back to communities and fulfill our CSR. We did not make any political donations for lobbying, and any donations to a related party or a major donation, which exceeds NT$100 million, to a non-related party must be approved by the Board of Directors.

Participation in Non-Profit Organizations

In order to help industries in Taiwan improve their operation outlook, FPCC has been proactively participating in various industrial associations and societies by serving as chairman, director/supervisor, and representative at the said organizations. We conduct exchanges with counterparts on operational experience through associations and organizations, and share the latest market intelligence, supply and demand changes, and technical information, in hopes of making contributions to the industry as a whole. Important positions held by the Company in various associations are described below:

Procedures for Communicating Critical Concerns

Explanation of the Company's investment in Louisiana, USA

The Company originally planned to invest a total of US$9.4 billion in Louisiana, USA. We originally planned to build an ethane cracker and downstream plants in St. James Parish, Louisiana. It was originally expected to create 1,200 jobs and make massive economic contribution to local communities.

The investment was carried out by the Delaware-based company "FG INC" and its wholly-owned Louisiana-based subsidiary "FG LA LLC." FG INC is a subsidiary in which the Company holds 57% shares and has a capital of US$377 million; the Company's capital contribution was US$215 million. The investment project had already obtained all of the environmental impact assessment permits needed in 2020. However, the project was impacted by the COVID-19 pandemic and protests from environmental protection groups, in which the court ruled that "emission permit" to be valid in the lawsuit brought by the state government, but the "development permit" issued by the Army Corps of Engineers has yet to be resolved. The entire project is currently on hold, and the Company will re-evaluate after related issues are clarified.

I. Regarding the emission permit:

The State of Louisiana Government appealed against the ruling of the district court of Louisiana to revoke the exhaust emission permit issued by the environmental protection department. On January 19, 2024, the Louisiana First Circuit Court of Appeals ruled to overturn the original decision of the 19th Judicial District Court to revoke the emission permit. The emission permit obtained by FG INC is still valid. The parties in this case are the State of Louisiana Government against the local environmental protection group, FG INC only assisted by providing relevant information to the state government and is not a party to the litigation.

II. Regarding the development permit:

Due to the environmental protection policy of the Biden administration, U.S. federal officials requested the regional branch of the Army Corps of Engineers issue an Environmental Impact Statement (EIS) for the Louisiana investment project, and the land development permit issued by the Army Corps of Engineers was temporarily put on hold.