Climate Change Data

M.J. International Co., Ltd.

Climate Impact & Sustainability Data (2018, 2019, 2020, 2023)

Reporting Period: 2018

Environmental Metrics

ESG Focus Areas

  • Environmental protection
  • Social responsibility
  • Corporate governance

Environmental Achievements

  • Passed SA8000 certification and BRE green environmental protection certification.
  • Passed Floor Score US indoor air health emission standard certification.
  • Acquired the Green Tag Certificate from Ministry of Interior of Taiwan R.O.C.

Social Achievements

  • Established various management regulations and requirements, such as salary, promotion, rewards and punishments, leave and social insurance, complying with local laws and regulations.
  • Provides meal allowance or clean and sanitary meals, as well as dormitory for employees or accommodation allowance, and various subsidies for marriage, funeral, festival, birthday celebration and trips.
  • Established the opinion mailbox and email box dedicated to accepting complaints from the employees.

Governance Achievements

  • Established the Audit Committee and Remuneration Committee.
  • Established the “Regulations Governing Operation of Board of Directors Meetings”, “Regulations Governing Prevention of Insider Trading”, “Corporate Governance Best-Practice Principles”, “Ethical Corporate Management Best-Practice Principles” and “Corporate Social Responsibility Best-Practice Principles”.
  • Implemented effective risk control pursuant to the related regulations governing internal control and internal audit systems.

Climate Goals & Targets

Long-term Goals:
  • Set up business locations in various districts of Mainland China step by step, dedicated to deepening the development in the domestic market of the mainland China, and upgrading the business performance and market shares in the market of Mainland China.
Medium-term Goals:
  • Invest in mass production of the new product, SPC stone plastic floor, in order to upgrade the profit sought by products by introducing new products and expanding the sales of own brand products.
Short-term Goals:
  • Keep developing sales channels and seek cross-industry alliance to expand its market share.

Environmental Challenges

  • Impact brought by the inventory adjustment for the customer in Europe.
  • Decline in revenue.
  • Decrease in gross profit margin.
Mitigation Strategies
  • Investing in mass production of the new product, SPC stone plastic floor.
  • Upgrading of the yield by the Company’s improvement of production process and increase in the percentage of sales under own brand.
  • US dollar exchange rate rally helped mitigate the decline of the gross profit margin.

Supply Chain Management

Responsible Procurement
  • When selecting suppliers, the Company will consider whether the supplier’s social responsibility commitment and performance comply with the standard requirements under the SA8000 system as the first priority.

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: IFRSs

Certifications: ISO 9001, ISO 14001, SA8000, CE, BRE A+, Floor Score, SGS, BV, CSTB, Green Tag

Third-party Assurance: Deloitte Taiwan

UN Sustainable Development Goals

  • Not disclosed

Sustainable Products & Innovation

  • Novel environmental protection paper floor
  • three-dimensional pattern PVC floor
  • NON-Phthalate environmental protection floor
  • PUR high scratch-resistant and chemical-resistant floor
  • Micro-glue floor
  • large rounded floor molding technology
  • GF fiberglass composite floor
  • lock-type floor
  • paper floor
  • WPC/PVC composite lock-type floor
  • Non-PVC (PP) environmental protection floor
  • reusable magic sticker floor
  • Commercial fire-resistant level non-PVC (PP) environmental protection floor
  • Anti-static level non-PVC (PP) environmental protection floor
  • WPC PLUS (commercial level WPC)
  • Plastic floor with carpet looking
  • Cigarette butt-resistant floor
  • Stain-resistant/scratch-resistant floor
  • Flame-resistant high-viscosity adhesive wall materials
  • Glue-free anti-slip floor tile
  • Magnetic wall materials
  • Rounded angle floor tile
  • Flexible floor tile
  • SPC floor tile

Awards & Recognition

  • Outstanding Taiwanese Businessman Award-Export Excellence Award

Reporting Period: 2019

Environmental Metrics

ESG Focus Areas

  • Environmental protection
  • Social responsibility
  • Employee welfare

Environmental Achievements

  • China production base obtained ISO14001 and China environmental label certifications. Green Tag certificate received for green construction materials in Taiwan.
  • Efforts to improve resource efficiency and incorporate green materials into production.
  • Compliance with environmental regulations and international principles in the production process.

Social Achievements

  • Established working rules and human resource management rules in accordance with local laws and international human rights conventions.
  • Implemented employee welfare measures including remuneration, vacations, and other benefits.
  • Provided a safe and healthy working environment and conducted regular safety and health education for employees.
  • Developed an effective employee training program.

Governance Achievements

  • Established an Audit Committee and Remuneration Committee.
  • Implemented policies to prevent insider trading.
  • Established a whistleblowing system.

Climate Goals & Targets

Long-term Goals:
  • Establish business locations globally and in the Greater China market.
Medium-term Goals:
  • Strengthen supply chain cooperation, co-develop alternative new materials, reduce production costs.
  • Research and develop new environmentally friendly, comfortable, and safe products.
Short-term Goals:
  • Enhance core technology capabilities, transform to automated machine production, and cut labor costs.
  • Expand production scale, increase production lines, and upgrade production process efficiency.

Environmental Challenges

  • Fluctuation in raw materials prices.
  • Impact of Free Trade Agreements.
  • Potential impact of infectious disease epidemics (e.g., COVID-19).
Mitigation Strategies
  • Strict inventory control and price negotiation with suppliers and customers to mitigate raw material price fluctuations.
  • Focus on production management, high-end quality, and product differentiation to enhance competitiveness in response to Free Trade Agreements.
  • Decentralized production capacity and market distribution to reduce the impact of global protectionism and epidemics.

Supply Chain Management

Responsible Procurement
  • Selection of suppliers based on SA8000 social responsibility standards.

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

  • Environmental protection paper floor
  • Three-dimensional pattern PVC floor
  • Non-phthalate environmental protection floor
  • PUR high scratch-resistant and chemical-resistant floor
  • Micro-glue floor
  • GF fiberglass composite floor
  • Lock-type floor
  • Paper floor
  • WPC/PVC composite lock-type floor
  • Non-PVC (PP) environmental protection floor
  • Reusable magic sticker floor
  • Commercial fire-resistant level non-PVC (PP) environmental protection floor
  • Anti-static level non-PVC (PP) environmental protection floor
  • WPC PLUS
  • Plastic floor with carpet looking
  • Cigarette butt-resistant floor
  • Stain-resistant/scratch-resistant floor
  • Flame-resistant high-viscosity adhesive wall materials
  • Glue-free anti-slip floor tile
  • Magnetic wall materials
  • Rounded angle floor tile
  • Flexible floor tile
  • SPC floor tile
  • Anti-contraction Glue-free anti-slip floor tile
  • Lightly SPC lock-type floor

Reporting Period: 2020

Environmental Metrics

Social Achievements

  • Passed SA8000 certification and BRE green environmental protection certification.
  • Passed Floor Score US indoor air health emission standard certification.
  • Acquired the Green Tag Certificate from Ministry of Interior of Taiwan R.O.C.

Governance Achievements

  • Established the Audit Committee and Remuneration Committee

Climate Goals & Targets

Long-term Goals:
  • Integrate the Company’s resources and aim to set up business locations in the world and the Greater China market to expand the Company’s operating and niche scale.
Medium-term Goals:
  • Strengthen the cooperation with the suppliers of the supply chain in the industry, co-develop alternative new materials, reduce production costs and secure strength in the price competition.
  • Dedicated to researching and developing new materials and excellent products equipped with new functions intended for “environmental protection, comfort and safety” to satisfy the needs of the consumer market.
  • Continue to introduce the professionals with international competency to upgrade the Company’s core competitiveness.
Short-term Goals:
  • Enhance the core technology capabilities, transform into automated machine production, and cut labor costs.
  • Steadily expand the production scale, increase production lines and upgrade the production process efficiency to maximize the effect of productivity.
  • Keep deepening the relationship with customers, provide high-value-added excellent products and achieve the win-win situation between the Company and its customers.
  • Set up business locations in various districts of Mainland China step by step, dedicated to deepening the development in the domestic market of the mainland China, and upgrading the business performance and market shares in the market of Mainland China.

Environmental Challenges

  • COVID-19 epidemic significantly impacted the global economy, world trade, job market, and industry supply chain.
  • Depreciation of the U.S. dollar against the New Taiwan dollar.
  • Shortage of cabins and containers for global shipping.
Mitigation Strategies
  • Strengthening the sales in commercial markets and actively branching up household markets.
  • Devoting in the R&D of LVT and SPC products.
  • Promoting ODM business transformation on the export market.
  • Building a good growth engine for future business of the corporation.
  • Investment plan for a new SPC plant in Tainan to expand its SPC stone tile production line.

Supply Chain Management

Responsible Procurement
  • When selecting suppliers, the Company will consider whether the supplier’s social responsibility commitment and performance comply with the standard requirements under the SA8000 system as the first priority.

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

  • Adding the galss fiber into backing layers of original Glue-free anti-slip Anti-contraction floor tile
  • Glue-free anti-slip floor tile
  • Lightly SPC lock-type floor
  • SPC floor tile with excellent sound insulation improvement

Reporting Period: 2023

Environmental Metrics

ESG Focus Areas

  • Environmental protection
  • Circular economy
  • Sustainable development
  • Employee well-being
  • Corporate social responsibility

Environmental Achievements

  • Developed rice husk flooring, winning three major design awards (Germany's iF, Germany's Red Dot, and the United States' IEDA) and obtaining invention patents in the US, China, and Taiwan.
  • Developed high-standard antiviral floor tiles with antiviral certification from the Society of International sustaining growth for Antimicrobial Articles (SIAA) in Japan.

Social Achievements

  • Provides meal allowance or clean and sanitary meals, as well as the dormitory for employees or accommodation allowance, and various subsidies for marriage, funeral, festival, birthday celebration and trips to take care of the employees physically and mentally.
  • Conducts trainings for employees every year to increase competitiveness in their competency.

Governance Achievements

  • Established the Audit Committee and Remuneration Committee.
  • Established the “Regulations Governing Operation of Board of Directors Meetings”, “Regulations Governing Prevention of Insider Trading”, “Risk Management Policy and Procedures”, and “Information Security Policy”.

Climate Goals & Targets

Long-term Goals:
  • Establish business locations worldwide and in the Greater China market to expand operating and niche scale.
Medium-term Goals:
  • Strengthen cooperation with supply chain suppliers, co-develop alternative new materials, reduce production costs, and secure strength in price competition.
  • Research and develop new materials and products with “environmental protection, comfort, and safety” functions.
Short-term Goals:
  • Enhance core technology capabilities, transform to automated machine production, and cut labor costs.
  • Expand production scale, increase production lines, and upgrade production process efficiency.

Environmental Challenges

  • Overall economic environment impact, customers continuously reducing their inventories and decreasing orders, resulting in a relative decrease in operating income.
  • Fluctuations in raw material prices (petroleum-based).
  • Impact of Free Trade Agreements on competitiveness.
  • Extreme weather events impacting production and transportation.
Mitigation Strategies
  • Optimized and integrated various plant areas to enhance production efficiency and reduce production costs; automated production processes to replace rising labor costs.
  • Continuous investments in process improvements and yield enhancement.
  • Implemented customer segmentation and product stratification strategies.
  • Strengthened sales and services to customers in North America.
  • Developed alternative sourcing strategies for raw materials.
  • Enhanced production efficiency and reduced costs through internal process improvements.
  • Developed low-carbon products (rice husk flooring, lightweight products) and initiated carbon labeling certification.
  • Implemented risk management practices to mitigate the impact on profitability.

Supply Chain Management

Responsible Procurement
  • Multiple suppliers for main raw materials to enhance supply chain resilience.
  • SA8000 system compliance considered a priority when selecting suppliers.

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events damaging factory equipment and impacting production.
  • Water shortages affecting production lines and increasing costs.
  • Extremely hot environments leading to higher electricity costs.
Transition Risks
  • Compliance with global carbon pricing/carbon tax regulations increasing operational costs.
Opportunities
  • Development of energy-efficient products.
  • Development of low-carbon products enhancing product added value and increasing gross profit margins.

Sustainable Products & Innovation

  • Rice husk flooring
  • PP (non-PVC) flooring
  • Antiviral tiles

Awards & Recognition

  • Germany's iF Design Award
  • Germany's Red Dot Design Award
  • American IDEA Design Award
  • Material Excellence label from Material ConneXion