Climate Change Data

FineMat Applied Materials Co., Ltd.

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:4088.562 tCO2e/year (2022)
Water Consumption:42,080 tons/year (2022)
Waste Generated:9.1 tons/year (2022)

ESG Focus Areas

  • Environmental Protection
  • Labor-Management Relations
  • Cyber Security
  • Corporate Social Responsibility
  • Ethical Management

Environmental Achievements

  • Received ISO 14001 international certification in 2023
  • Implemented dry cleaning equipment to reduce water consumption and recycle EDI electrode wastewater
  • Set future quantitative management targets for energy conservation, carbon reduction, and water consumption reduction

Social Achievements

  • Established Workers’ Welfare Committee
  • Provides and contributes to the pension fund in accordance with the Labor Standards Act and Labor Pension Act
  • Maintains labor insurance and national health insurance
  • Organizes sound pension and insurance system
  • Plans training orientation for career development
  • Zero occupational accidents in 2022

Governance Achievements

  • Established Remuneration Committee and Audit Committee
  • Adopted Regulations Governing Board’s Self-Evaluation or Peer Evaluation
  • Adopted Procedures for Handling Material Inside Information
  • Established Ethical Management Administration Team
  • Adopted Code of Ethical Conduct and Ethical Management Best Practice Principles
  • Adopted Regulations Governing Whistleblowing System

Climate Goals & Targets

Long-term Goals:
  • Expand production lines
  • Reduce capital cost
  • Maximize capital utilization
Medium-term Goals:
  • Develop mask technology for flexible panels
  • Improve thermal performance of ultra-thin VC
  • Provide timely technical consulting service
Short-term Goals:
  • Increase market share in China
  • Expand sales and market share of existing products
  • Improve production capacity and quality
  • Improve employee education and training

Environmental Challenges

  • Losses in heat dissipation materials due to deficiencies in production technology and management
  • Supply of main raw materials relies on international renowned manufacturers
  • Exported products are mainly denominated in USD, and main raw materials are procured from foreign suppliers
  • Foreign exchange rate fluctuations impact profit
Mitigation Strategies
  • Continue to improve shortcomings and expect good performance in heat dissipation materials in 2023
  • Maintain close cooperative relationships with suppliers, establish inventory management mechanisms, and execute supply contracts
  • Look for alternative materials to mitigate risks over materials price volatility and shortage
  • Expand accounting and financial department, observe market changes, and mitigate negative impact posed by changes in foreign exchange rates
  • Adopt foreign exchange position natural hedging and exercise forward exchange transactions

Supply Chain Management

Supplier Audits: Annual

Responsible Procurement
  • Compliance with RoHS

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: International Financial Reporting Standards (IFRSs)

Certifications: ISO 14001, ISO 90001

Third-party Assurance: PwC Taiwan

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:3685.577 tCO2e/year (2023)
Water Consumption:35.669 tons/year (2023)
Waste Generated:9.0 tons/year (2023)

ESG Focus Areas

  • Environmental Protection
  • Employee Well-being
  • Corporate Governance

Environmental Achievements

  • Received ISO 14001 certification in 2023; implemented dry cleaning equipment to reduce water consumption and recycle EDI electrode wastewater; reduced water consumption from 42,080 tons in 2022 to 35,669 tons in 2023; reduced GHG emissions from power consumption from 4088.562 tons in 2022 to 3685.577 tons in 2023; reduced waste from 9.1 tons in 2022 to 9.0 tons in 2023.

Social Achievements

  • Established Workers’ Welfare Committee; provides competitive remuneration system with incentives; maintains labor insurance and national health insurance; provides group insurance, bonuses, health checkups, and recreational activities; implemented complete in-service training program for employee career development; zero occupational accidents in 2023.

Climate Goals & Targets

Long-term Goals:
  • Maximize capital utilization; improve competitiveness through technical consulting and collaboration with customers.
Medium-term Goals:
  • Expand equipment, production capacity, and technology; expand into non-AMOLED metal mask market; improve ultra-thin VC thermal performance and yield rate.
Short-term Goals:
  • Develop new customers for metal etching and heat dissipation materials; expand mask sheet shipments; improve employee education and training.

Environmental Challenges

  • Deficiencies in production technology and management in heat-dissipating materials in 2022; price pressure in the AMOLED mask market due to increased competition; bottleneck in AMOLED MASK market development in China; supply chain reliance on international manufacturers; foreign exchange rate fluctuations; risks associated with concentrated purchases or sales.
Mitigation Strategies
  • Made improvements in technology and management of thermal materials in 2023; restructuring business model in AMOLED mask market; expanding product range of metal etching; developing alternative sourcing strategies; establishing inventory management mechanism; implementing foreign exchange position natural hedging; working with other suppliers; cooperating with Chinese manufacturers.

Supply Chain Management

Supplier Audits: Annual

Responsible Procurement
  • Compliance with RoHS directives; working with suppliers on EHS and CSR issues.

Climate-Related Risks & Opportunities