Climate Change Data

Environmental Metrics

ESG Focus Areas

• Company Governance
• Sustainable Environment
• Employee Welfare

Environmental Achievements

• Reduced water consumption in Taichung and Kaohsiung branches due to reduced business volume and stricter water control measures.
• High recycling rate of packaging materials (PVC space bags, PA space bags, and 1-ton barrels).

Social Achievements

• Provided employee benefits exceeding legal requirements, including travel allowances, bonuses, and birthday gifts.
• Offered various training programs to enhance employee skills and knowledge.
• Maintained a harmonious labor-management relationship with no employee complaints in 2017.

Governance Achievements

• Established a Corporate Social Responsibility Committee to oversee company governance, economic, environmental, and social issues.
• Implemented a “Code of Conduct” to promote ethical business practices.
• Established an internal audit department to ensure compliance with laws and regulations.

Climate Goals & Targets

Environmental Challenges

• Fluctuations in the petrochemical industry.
• Increased international competition.
• Rising global trade protectionism.
• Pressure from China's localized supply chain.
• Industry relocation and market diversification.
• Competition intensification.

Mitigation Strategies

• Adjusting inventory levels to avoid price discrepancies.
• Maintaining a strong market share and promoting new products.
• Expanding into overseas markets (China, Southeast Asia, India).
• Diversifying product offerings to meet customer needs.
• Strengthening relationships with suppliers and customers.
• Improving logistics and transportation efficiency.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Prioritizing domestic suppliers (80% or more in recent years).
• Developing a supplier code of conduct focusing on occupational safety, environmental protection, and labor rights.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4 Core

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 2015 Excellent Award from the Ministry of Health and Welfare for hazardous chemical substance joint prevention and control.

Environmental Metrics

ESG Focus Areas

• Company Governance
• Sustainable Environment
• Employee Welfare

Environmental Achievements

• Reduced water consumption in Taichung and Kaohsiung branches due to pipeline repairs and maintenance.
• Reduced VOCs emissions due to decreased import volume of reportable raw materials.
• High recycling rate of packaging materials (e.g., pallets, space bags, empty drums).

Social Achievements

• Provided employee benefits such as wedding/funeral subsidies, employee travel, and health checkups.
• Encouraged employee participation in vocational training.
• No occupational accidents reported in 2018.

Governance Achievements

• Established a Corporate Social Responsibility Committee.
• Implemented an ethics code of conduct.
• Established a whistleblower mechanism.

Climate Goals & Targets

Environmental Challenges

• Fluctuations in oil prices affecting revenue.
• Competition from Chinese chemical industry.
• Supply chain disruptions (not explicitly stated, but implied by the discussion of supply chain management).

Mitigation Strategies

• Adjusting inventory levels to avoid price discrepancies.
• Strengthening transportation capabilities and service efficiency.
• Developing new products and expanding market share.
• Developing alternative sourcing strategies (implied).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Developed a supplier code of conduct and commitment letter.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards 2016 (Core)

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 2015 Excellent Award for Toxic Chemical Substance Joint Prevention and Control Operation Management from the Ministry of Health and Welfare (Taichung branch).

Environmental Metrics

ESG Focus Areas

• Company Governance
• Economic Sustainability
• Environmental Protection
• Employee Relations
• Product Safety
• Social Responsibility

Environmental Achievements

• Reduced water consumption in Taichung and Kaohsiung branches due to pipeline maintenance.
• Reduced VOCs emissions due to decreased import volume.
• Improved waste recycling and reuse practices.
• Participation in regional disaster prevention exercises.

Social Achievements

• Maintained stable employee turnover rate.
• Provided employee health checkups.
• Offered various employee welfare benefits (e.g., travel allowance, holiday bonuses).
• No employee complaints or lawsuits in 2020.
• Increased average annual salary for non-managerial employees.

Governance Achievements

• Established a CSR committee.
• Implemented an ethics code of conduct.
• Maintained compliance with laws and regulations.
• High board member attendance rate (100%).
• Self-assessment of board performance with an average score of 95.

Climate Goals & Targets

Environmental Challenges

• Fluctuations in oil prices impacting revenue.
• US-China trade disputes and the COVID-19 pandemic affecting market demand.
• Maintaining market share in a competitive industry.
• Potential supply chain disruptions due to extreme weather events.

Mitigation Strategies

• Adjusting inventory levels to mitigate price risks.
• Diversifying product offerings and markets.
• Strengthening relationships with suppliers and customers.
• Improving operational efficiency and cost control.
• Developing alternative sourcing strategies.
• Investing in employee training and development.
• Participating in regional disaster prevention organizations.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Inclusion of CSR clauses in contracts.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Reporting Standards

Frameworks Used: GRI Standards 2016, TWSE CSR Reporting Guidelines for Chemical Industry

UN Sustainable Development Goals

• SDG 1: No Poverty
• SDG 4: Quality Education
• SDG 5: Gender Equality
• SDG 8: Decent Work and Economic Growth
• SDG 13: Climate Action

Initiatives contributing to these goals are described in the report.

Environmental Metrics

ESG Focus Areas

• Company Governance
• Economic Sustainability
• Environmental Protection
• Occupational Safety and Health
• Employee Care
• Community Impact
• Sustainable Supply Chain

Environmental Achievements

• Reduced VOCs emissions compared to the previous year.
• Proper waste disposal with no environmental pollution.
• Scope 1 emissions: 380.99 tCO2e; Scope 2 emissions: 96.37 tCO2e

Social Achievements

• All employees are full-time and permanent.
• Women employee ratio: 31.25%; Women in senior management: 12.5%
• 100% return-to-work and retention rate for employees on maternity leave.
• No employee complaints received through the complaint hotline, and no labor disputes occurred.
• No occupational accidents or occupational diseases.

Governance Achievements

• Board diversity: 43% independent directors, 58% under 60 years old, 14% female.
• Board meeting attendance: 100% for 4 directors, 83% for 3 directors.
• Audit committee meeting attendance: 100%.
• Remuneration committee meeting attendance: 100%.
• Internal self-assessment score for board performance: 96 points (excellent).
• 33% of directors completed ESG-related training.

Climate Goals & Targets

Environmental Challenges

• Inflation, COVID-19 impact in China, economic downturn, fluctuating oil prices, and weak profits.
• Supply chain disruptions.
• Climate change impacts (extreme weather, water scarcity).

Mitigation Strategies

• Cost control and improved gross profit margin.
• Adjusting inventory levels to avoid price differences.
• Diversifying markets (expanding overseas and in China).
• Improving transportation and distribution efficiency.
• Developing alternative sourcing strategies.
• Implementing water conservation measures.
• Strengthening waste management and recycling.
• Improving energy efficiency and controlling greenhouse gas emissions.

Supply Chain Management

Supplier Audits: 2 audits/year

Responsible Procurement

• Quality, price, and delivery time management and audits.
• Supplier Sustainability Commitment Letter.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Water scarcity

Transition Risks

• Changes in regulations (e.g., carbon tax)
• Market shifts (e.g., consumer preference for low-carbon products).

Opportunities

• Increased demand for low-carbon products.
• Improved energy efficiency.
• Development of new sustainable products/services.

Reporting Standards

Frameworks Used: GRI Standards 2021, SASB, TCFD

Certifications: ISO 9001, GRS

Third-party Assurance: KPMG and Guofu Huahua

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 4: Quality Education
• Goal 5: Gender Equality
• Goal 8: Decent Work and Economic Growth
• Goal 13: Climate Action

Initiatives contributing to these goals are described in the report.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Company Governance
• Economic Sustainability Growth
• Environmental Protection and Product Safety
• Employee Care

Environmental Achievements

• VOCs emissions decreased year over year.
• Waste packaging (1-ton drums) recycling rate reached 97%.
• Scope 1 emissions: 378.83 tCO2e/year; Scope 2 emissions: 131.81 tCO2e/year.

Social Achievements

• All employees are full-time and permanent.
• Women employee ratio: 31.43%; Women in senior management: 13.33%.
• 100% return-to-work and retention rate for employees on maternity leave.
• No employee complaints received through the complaint hotline, and no labor disputes occurred.
• No occupational accidents or occupational diseases occurred.

Climate Goals & Targets

Environmental Challenges

• Weak business performance due to sluggish global and Chinese economies, weak end-demand, and inventory adjustments.
• Intense market competition.
• Potential for chemical leaks, fires, etc. during product production, storage, and transportation.
• Climate change impacts (extreme weather, water scarcity).

Mitigation Strategies

• Cost control and improved gross profit margin.
• Diversification of products and markets.
• Strengthening of transportation and distribution capabilities.
• Improved safety measures for chemical transportation and storage.
• Water conservation measures.
• Waste reduction and recycling initiatives.
• Climate risk management process aligned with TCFD.

Supply Chain Management

Supplier Audits: 4 audits conducted in 2023

Responsible Procurement

• Supplier sustainability commitment letter.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Water scarcity
• Power outages

Transition Risks

• Changes in regulations
• Changes in customer demand

Opportunities

• Improved energy efficiency
• Development of low-carbon products/technologies

Reporting Standards

Frameworks Used: GRI Standards 2021, SASB, TCFD

Certifications: ISO 9001, GRS

Third-party Assurance: KPMG and Guofu Huahua

UN Sustainable Development Goals

• Goal 1
• Goal 4
• Goal 5
• Goal 8
• Goal 13

Initiatives contribute to these goals through fair compensation, employee training, gender equality, safe working conditions, and environmental protection.