Climate Change Data

Environmental Metrics

ESG Focus Areas

• Governance
• Environmental
• Social

Environmental Achievements

• Reduced overall greenhouse gas emissions by approximately 18.2% (Scope 1 reduced by 30%, Scope 2 by 16%).
• Reduced water consumption by approximately 30%.
• Reduced waste by 25.55%.
• Achieved a 53.95% recycling/reuse rate for waste.
• 君品酒店 obtained a bronze-level environmental protection hotel label from the Environmental Protection Administration.
• 雲品溫泉酒店 obtained a bronze-level environmental protection hotel label from the Environmental Protection Administration.

Social Achievements

• Implemented a three-no policy (no layoffs, no salary cuts, no unpaid leave) to protect employees during the pandemic.
• Provided 2,817.5 hours of human rights training in 2021.
• Maintained a 51.5% average female employee ratio and 52.1% average female management ratio in 2021.
• Provided 14,929.2 hours of employee training in 2021.
• Reduced work-related injuries by 35% in 2021 compared to 2020.

Governance Achievements

• Established an Enterprise Sustainability Development Committee in December 2020.
• Implemented a risk assessment process based on materiality principles.
• Adopted the TCFD framework for climate-related risk assessment.
• Obtained a limited assurance opinion from Ting Hsin Certified Public Accountants.

Climate Goals & Targets

Environmental Challenges

• Pandemic impact on business operations.
• Climate change risks (detailed in TCFD assessment).

Mitigation Strategies

• Implemented a three-no policy for employees during the pandemic.
• Adjusted operational strategies and internal training to deepen corporate culture.
• Developed and implemented climate change risk mitigation strategies based on TCFD recommendations.

Supply Chain Management

Supplier Audits: Annual self-assessment by suppliers.

Responsible Procurement

• Code of conduct for suppliers
• Annual supplier social responsibility self-assessment

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards, TCFD

Certifications: ISO 50001 (planned for 2022)

Third-party Assurance: 鼎鑫聯合會計師事務所 (Limited Assurance)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 3rd place in the 2021 CommonWealth Magazine Corporate Citizen Awards (Small Giant category)
• Gold Award in the 2021 TCSA Taiwan Corporate Sustainability Awards (Category 2)

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Social Responsibility
• Governance

Environmental Achievements

• 2022 overall electricity consumption indicated a reduction of 5% from 2021
• The ratio of recycled or reused waste was 57.96% in 2022; a reduction of 25.55% in comparison with the total waste volume of previous year.
• Fleur de Chine Sun Moon Lake Branch further utilizes the TCC’s information along with the ISO14040 and ISO14044 methodology to assess the product life cycle carbon footprint
• Palais de Chine Hotel adopts the three-stage water saving measure
• Fleur de Chine Hotel replaces all toilets to water-saving toilets, and also implements recycle and reuse of hot spring, water reservoir and landscape fountain water.
• Palais de Chine Hotel received the honor of Service Category Hotel Industry Eco-friendly Hotel Mark Bronze Class presented by the Environmental Protection Administration (EPA) in 2021
• Fleur de Chine Hotel received the honor of Service Category Hotel Industry Eco-friendly Hotel Mark Bronze Class presented by the Environmental Protection Administration (EPA) in 2019
• Fleur de Chine Hotel calculates the carbon emissions of the guest rooms, and invites customers to participate in the purchase of carbon credits jointly. After the Fleur de Chine’s additional purchase of carbon credits, the carbon emissions generated by the guest rooms becomes a negative value

Social Achievements

• In 2022, the number of female employees accounted for 51% of all employees, and the number of female supervisors accounted for 48% of all management staff.
• The average salary adjustment rate in 2022 was 7%, and maximum individual salary adjustment rate reached 11%.
• Total number of training hours completed by the Company in 2022 was 11,983 hours, and the total number of training reached 3,484 trainees.
• In 2022, the number of people with occupational injuries were 57 people (accounting for 7.02% of the total number of employees)

Governance Achievements

• The Company adopts the “Candidate Nomination System”.
• The Company has established the “Corporate Governance Best Practice Principles” in March 2016.
• The Company has established the “Corporate Sustainable Development Committee” in December 2020.
• The Company has established the “Remuneration Committee Charter” approved by the board of directors on September 18, 2015.

Climate Goals & Targets

Environmental Challenges

• Increase of operating cost of suppliers
• Severe competition among tourist hotel operators
• Food safety issue affecting foreign tourists’ willingness to visit Taiwan
• Impact of the global COVID-19 pandemic

Mitigation Strategies

• The Company values supply chain integration and management, and has established long-term cooperation and partnership with suppliers.
• The Company will continue to provide excellent service quality and to strengthen the customers’ recognition and trust on the Company. In addition, the Company also actively plans diverse travel themes and engages in cross-industry collaboration with travel agencies and credit card companies in order to release package trip discounts and to develop domestic and foreign customer groups continuously, thereby reducing the market risk.
• The Company continues to emphasize the food hygiene and safety of consumers in priority, and enhances the commitment to meal quality with rigorous monitoring of the production/sales supply chain and also promotes a food safety inspection mechanism, in order to ensure the thorough implementation of food safety management.
• Adjustment of operation strategy, Financing strategy, Government’s relief measures

Supply Chain Management

Supplier Audits: Annual

Responsible Procurement

• Code of conduct
• Supplier sustainability requirements

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, SASB Standards

Certifications: HACCP, TTQS Gold Medal, ISO 50001, CU-GSTC Hotel Certification, AMOT Three-Star certification (3 restaurants)

Third-party Assurance: Top New & Co., CPAs (TNC)

Awards & Recognition

• Taiwan Corporate Sustainability Awards (TCSA) Platinum Award
• CommonWealth Corporate Citizen Award 5th place in the Little Giant Category
• Numerous awards from domestic and foreign tourism magazines and media

Environmental Metrics

ESG Focus Areas

• Sustainable Tourism
• Environmental Protection
• Biodiversity
• Corporate Social Responsibility (CSR)
• Governance

Environmental Achievements

• Fleur de Chine Hotel became the first hotel in Taiwan to receive the National Sustainable Development Award from the Executive Yuan in 2023.
• Reduced water consumption (2022: 318,230 tonnes; 2023: 295,781 tonnes).
• Reduced waste (2022: 340.57 tonnes; 2023: 333.10 tonnes). 57.96% of waste recycled or reused in 2023.
• Implemented ISO 50001 energy management system.
• Achieved Green Restaurant certification and a three-star food traceability award.

Social Achievements

• Launched carbon-negative lodging option with over 3,000 participants.
• Launched tree-planting event in collaboration with Taiwan Cement, with over 500 participants.
• Implemented various employee wellbeing initiatives (details not quantified).
• 49.50% female employees in 2023; 48.13% female supervisors.
• Implemented comprehensive employee training programs (14,251 training hours in 2023).

Governance Achievements

• Established Corporate Sustainable Development Committee (2020) and Risk Management Committee (2023).
• Established Audit Committee with 3 independent directors.
• Established Remuneration Committee.
• Implemented robust internal control system (deemed effective as of December 31, 2023).

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to extreme weather events (typhoons, uneven rainfall).
• Stricter domestic regulations on energy conservation and renewable energy.
• Potential future carbon taxation.
• Severe competition in the hotel and catering industries.

Mitigation Strategies

• Established Typhoon Preparedness Operations and Major Event Notification and Handling Regulations.
• Launched Typhoon Lodging Specials.
• Established Water Conservation Audit Organization and Emergency Water Shortage Response Measures.
• Implemented ISO 50001 energy management system with a target of 1% annual electricity reduction.
• Actively promoting various energy-saving measures.
• Implementing local procurement strategies.
• Developing a circular economy model (reducing waste, reusing leftover food).
• Obtaining eco-hotel certifications.

Supply Chain Management

Supplier Audits: Annual

Responsible Procurement

• Code of conduct
• Supplier sustainability requirements
• Local procurement

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters (typhoons)
• Uneven rainfall distribution leading to water shortages
• Increased temperatures leading to higher energy consumption

Transition Risks

• Stricter carbon reduction regulations
• Carbon taxation

Opportunities

• Local procurement
• Developing a circular economy model
• Meeting changing consumer preferences for eco-friendly products and services

Reporting Standards

Frameworks Used: GRI Standards, SASB Standards

Certifications: HACCP, Global Sustainable Tourism Certification - CU-GSTC Hotel Certification, ISO 50001, AMOT Food Traceability Three-Star Certification, Green Restaurant certification

Third-party Assurance: Top New & Co., CPAs (TNC)

Sustainable Products & Innovation

• Carbon-negative lodging option
• Eco-friendly hotel initiatives

Awards & Recognition

• National Sustainable Development Award (Executive Yuan, 2023)
• Far Eastern ESG Corporate Sustainability Outstanding Program: Social Innovation Model Award (2023)
• CommonWealth Corporate Citizen Award (5th place in Little Giant Category, 2023)
• TCSA Taiwan Corporate Sustainability Award (Platinum Award, 2023)