Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Employee well-being
• Ethical corporate management
• Supply chain management

Environmental Achievements

• Developed patented environment-friendly wet prints
• Developed ECO-LOR® series, T-Cool and T-Hot series textiles for climate control produced by dyeing with primary liquid

Social Achievements

• Established an Employee Welfare Committee
• Implemented bonus system for long employment
• Annually organize two-day travel for employees
• Annually organize physical examinations for employees

Governance Achievements

• Established and implemented the performance evaluation of the Board of Directors
• Formulated and implemented the “Rules of Procedure for Board of Directors Meetings”, “Rules for Performance Evaluation of Board of Directors”, “Standard Operating Procedures for Handling Directors’ Requirements”, “Ethical Corporate Management Best Practice Principles”, and “Corporate Governance Best Practice Principles”
• Established a “Tex -Ray CSR Committee”

Climate Goals & Targets

Environmental Challenges

• Fierce competition in the global textile industry
• Participation of emerging countries in the textile and garment ODM market
• Rise of new types of retail customers
• US-China trade war
• COVID-19 pandemic
• Increased costs of raw materials
• Depreciation of US dollars
• Restrictions on environmental and trade rules
• Exchange rate fluctuations
• Inflation

Mitigation Strategies

• Flexible business strategy
• Strong textile capacity
• Product research and development
• Production technology innovation
• Resource integration and OEM processing
• Flexible application of global supply chains
• Rapid response to risk control
• Strategic advantages of the Texray Seamless Value Added Chain (TSVAC)
• Restructuring existing businesses
• Technological reduction or suspension of production of subsidiaries with meager profits or losses
• Concentration on profitable regions or businesses
• Strengthening the management of the global supply network
• Further developing the regional market
• Strengthening R&D and design capabilities
• Strengthening the development of eco-friendly and functional textiles
• Streamlining the organizational structure and operating procedures
• Expanding investment and counseling companies with positive relationships

Supply Chain Management

Supplier Audits: Multiple times a year

Responsible Procurement

• Supplier Management Policy
• Supplier specifications

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards (GRI Standards)

Certifications: ISO 14001

Sustainable Products & Innovation

• ECO-LOR® series, T-Cool and T-Hot series textiles, T-FRESH ® C&C photocatalytic and metal fiber anti-epidemic products, RAYS functional fabrics

Awards & Recognition

• National Excellent Manufacturer in catalytic preparation
• 11th Taiwan Excellence Award

Environmental Metrics

ESG Focus Areas

• Environmental pollution management
• Energy and resource consumption and management
• Occupational safety and health
• Talent training and development
• Compensation and benefits
• Compliance
• Supply chain management

Environmental Achievements

• Created a patented eco-friendly wet print technique
• Developed eco-friendly, energy saving, carbon reduction, and performance products, including the ECO-LOR® series and T-Cool and T-Hot series

Social Achievements

• Implemented the “Education and Training Management Regulations”, providing employees with training for future development and promotion
• Established sound and multi-dimensional labor-management communication channels and management policies
• Provided well-founded employees’ benefits

Governance Achievements

• Practiced the internal control and audit system to ensure compliance with related laws and regulations
• Followed the “Supplier Management Policy” to ensure suppliers’ compliance with various laws and requirements

Climate Goals & Targets

Environmental Challenges

• Global supply chain disruptions due to COVID-19 pandemic and port congestion
• Vietnam factory production suspension due to lockdown
• Fluctuations in raw material prices
• Rising labor costs in developing countries
• Low-cost competition from emerging industrial countries
• Impact of US-China trade war and protectionism

Mitigation Strategies

• Consolidated global production & marketing supply chain
• Allocated production capacity from other bases to compensate for Vietnam's shutdown
• Reduced proprietary fabric production in China, expanded export business in Africa
• Took over orders from brands and distributors in crisis
• Enhanced designs with market value and engaged in research and development and market expansion
• Reorganized subsidiaries to reduce management costs and improve efficiency
• Strengthened partnerships with suppliers, developed alternative sourcing strategies
• Introduced automated equipment and systems
• Reviewed salary management policies
• Focused on performance textiles and smart clothing
• Developed diversified business opportunities and expanded emerging markets

Supply Chain Management

Supplier Audits: Once per year

Responsible Procurement

• Supplier Management Policy
• Code of conduct
• Supplier sustainability requirements
• Pre-interview with suppliers before cooperation
• Evaluation prior to contract execution
• Routine evaluation

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards (2016)

Certifications: ISO 14001, ISO 45001, GRS (Global Recycled Standard), OEKO-TEX Standard 100, WRAP, BetterWork, WCA

Sustainable Products & Innovation

• ECO-LOR® series
• T-Cool and T-Hot series
• T-FRESH® C&C series
• RAYS performance textile series

Awards & Recognition

• 11th Taiwan Excellence Award
• Business Startup Awards - Open Competition Quality Award
• TOG Awards - Excellence and Gold awards

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Sustainable development
• Employee well-being
• Supply chain management
• Human rights

Environmental Achievements

• Developed printing-as-dyeing technology based on patented eco-friendly wet printing, providing modern environmental solutions for the printing and dyeing industry.
• Developed eco-friendly, energy-saving, carbon-reducing, and technology performance products, such as the ECO-LOR® series with dope dyeing process and the temperature-regulating textiles T-Cool® and T-Hot® series.

Social Achievements

• Established the Employee Welfare Committee to safeguard employee benefits and organize welfare events.
• Implemented human rights-related policies such as gender equality, prohibition of child labor, prohibition of forced labor, and employment discrimination.
• Provided a transparent grievance mechanism for employees.

Governance Achievements

• Established the Risk Management Committee to regularly review risk management at all levels.
• Adopted the “Regulations Governing Appraisal on Performance of the Board of Directors and Functional Committees,” and “Regulations Governing Payment of Compensation to Directors”
• Appointed Mr. Wu Chien-Chung as the chief corporate governance officer.

Climate Goals & Targets

Environmental Challenges

• Increase in inflation and operating expenses.
• Fluctuations in the price of raw materials.
• Rising wages in production sites.
• Intensifying trade competition.
• Stringent environmental requirements.
• Global financial turmoil.
• Supply chain disruptions due to the Russia-Ukraine war and China's zero-COVID policy reversal.

Mitigation Strategies

• Maintained a conservative business strategy, avoiding additional risks.
• Made organizational adjustments for customer optimization.
• Refined production and management capabilities.
• Flexibly managed global production and sales supply chains.
• Adjusted production layout and shifted towards other countries as production bases.
• Expanded production capacity in the African region.
• Consolidated subsidiaries to reduce management costs.
• Streamlined processes to strengthen communication and synergy across production sites.
• Focused on strengthening its internal business physique.
• Prioritized investing resources in the R&D of sustainable and eco-friendly products.

Supply Chain Management

Supplier Audits: 60% of suppliers of Taipei headquarters in 2021

Responsible Procurement

• Supplier Management Policy
• Tex-Ray Supplier Specification on environmental protection, occupational safety and health, and labor rights
• Prioritizing suppliers with environmental certifications such as GRS, OEKO-TEX or ZDHC

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons and rainstorms
• Shortages of water and electricity resources
• Rising temperatures
• Reduced raw material production

Transition Risks

• Greenhouse gas (GHG) emission control and international carbon pricing mechanisms
• Low-carbon technology transformation and development
• Rising environmental awareness among customers and markets
• Corporate reputation

Opportunities

• Development of energy-efficient products
• Development of products with sustainable concepts
• Establishment of a green supply chain

Reporting Standards

Frameworks Used: GRI Standards, TCFD, SASB

Certifications: ISO 14001, Oeko-Tex 100, WRAP, SLCP, SMETA, GRS

Third-party Assurance: Not disclosed

Sustainable Products & Innovation

• ECO-LOR® series
• T-Cool® and T-Hot® series
• RAYS performance textiles

Awards & Recognition

• Business Startup Awards - Open Competition Quality Award
• 11th Taiwan Excellence Award
• TOG Awards - Excellence and Gold awards