Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Environmental Protection
• Employee Care
• Social Welfare

Environmental Achievements

• Waste output reduced by 4% in 2020.
• Zero use of heavy oil in 2020.
• Waste generated from manufacturing of sponge products reduced by 24 tonnes in 2019 and 60 tonnes in 2020.
• Tainan Branch and Niao Song Factory were certified with GRS in May 2020.
• Ren Ai Factory passed ISO 13485 in November 2020.

Social Achievements

• No major fines or compensations due to legal violations in 2020.
• No discrimination cases in 2020.
• No violations of forced labor in 2020.
• No cases of occupational diseases, major occupational accidents, or deaths in 2020.
• Implementation rate of education and training in 2020 reached 75% despite COVID-19 impact.
• 240 participants in annual firefighting training in 2020.

Governance Achievements

• No incidents of integrity or ethics violations in 2020.
• No incidents of corruption in 2020.
• Attained ISO 27001 Information security management system.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting industrial operations and revenues (up to 80% drop in some areas).
• Market fluctuations.
• Sino-US trade war causing market turmoil and tariff issues.

Mitigation Strategies

• Implemented various COVID-19 response strategies including human resource adjustments, supply chain management, marketing optimization, financial measures, and innovative R&D.
• Continuous learning and transformation.
• Production capacity adjustment for flexibility.
• Active development of green and eco-friendly materials.
• Improvement and replacement of old equipment.

Supply Chain Management

Responsible Procurement

• Comparison of new suppliers based on market condition, delivery status, prices, and quality.
• Evaluation of new and qualified suppliers.
• Enhanced compliance of regulations concerning industrial safety, environmental protection, and human rights.

Climate-Related Risks & Opportunities

Physical Risks

• Change in average rainfall leading to insufficient process water.

Transition Risks

• Market risk (GRS certification requirements influencing customer behavior).
• Regulatory risk (mandatory reporting, renewable energy regulations).

Opportunities

• Development of energy-efficient products.

Reporting Standards

Frameworks Used: GRI Standards, Core Option, AA1000 Accountability Principles, UN SDGs

Certifications: ISO 9001, ISO 13485, ISO 14001, Oeko-Tex® Standard 100, Bluesign®, GRS

UN Sustainable Development Goals

• Goal 5
• Goal 8
• Goal 11
• Goal 12
• Goal 13
• Goal 15
• Goal 16
• Goal 17

The report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

• Eco-family products (Bio II, WSR).
• Bio-based TPU film (ECOMATE®).
• SEAMATE®BIO-Ⅱ™ Products.
• Recycled fabrics and Dope Dyed fabric laminate.

Environmental Metrics

ESG Focus Areas

• Governance
• Products
• Supply Chain
• Environment
• Social

Environmental Achievements

• Launched Eco-Family sustainable green material R&D, and achieved OEKO-TEX® Standard 100, Bluesign®, Global Recycled Standard, FSC CoC, and USDA certifications.
• Zero heavy oil usage in Taiwan since 2021.

Social Achievements

• Selected as a happy enterprise by 1111 Job Bank in 2022.
• 100% new employee human rights training rate.
• Total of 107 training courses offered in 2022, training 672 people for 3,410.8 hours.

Governance Achievements

• Continued ISO system for risk management: ISO 13485 and ISO 27001 certifications.
• No violations of integrity or ethical conduct; no corruption.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to global market fluctuations and trade wars.
• Raw material supply instability and cost increases.
• Meeting international and brand customer demands for eco-friendly and recycled materials.
• Climate change impacts on water resources and waste management.

Mitigation Strategies

• Developing Eco-Family materials (recyclable, reusable, low-carbon, bio-based).
• Implementing supplier sustainability self-assessment questionnaires in 2023.
• Improving energy efficiency and reducing energy consumption.
• Waste reduction and recycling initiatives.
• Water conservation measures and wastewater treatment.

Supply Chain Management

Supplier Audits: Quarterly supplier assessments

Responsible Procurement

• Supplier Code of Conduct
• Restricted Substances List compliance
• GRS, Bluesign, OEKO-TEX certifications

Climate-Related Risks & Opportunities

Physical Risks

• Water resource scarcity
• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts towards sustainable materials

Opportunities

• Development of energy-efficient products
• Increased demand for sustainable materials

Reporting Standards

Frameworks Used: GRI Standards 2021, SASB Apparel, Accessories and Footwear Standards

Certifications: ISO 14001, ISO 45001, ISO 13485, ISO 27001, OEKO-TEX® Standard 100, Bluesign®, GRS, FSC CoC, USDA BioPreferred

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Eco-Family products (bio-based, recycled materials)
• BIO-EVA35R
• WSR products

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Waste recycling and reuse rate increased to 55.94% in 2023, a 19.09% increase compared to 2022.
• Reduced energy consumption by approximately 14.06% in 2023 compared to 2022.
• Obtained various green certifications, including Higg FEM, Higg FSLM, Bluesign®, Global Recycled Standard, FSC CoC, OEKO-TEX® Standard 100, and USDA bio-based materials certification.

Social Achievements

• Selected as a happy company in 2021, 2022, and 2023 by 1111 Job Bank.
• 100% of new employees completed human rights training.
• Total training hours reached 5,037.8 hours in 2023, an increase from 6.18 hours per employee in 2022.

Governance Achievements

• No violations of integrity or ethical conduct occurred.
• No corruption incidents occurred.
• Plans to integrate ESG performance indicators into executive compensation in 2024.

Climate Goals & Targets

Environmental Challenges

• Global inflation and economic slowdown impacting customer demand.
• Increased electricity and natural gas costs.
• Potential increase in operating costs due to carbon tariffs and fees.
• Supply chain disruptions due to geopolitical instability and climate change.
• Meeting customer demands for low-carbon materials.

Mitigation Strategies

• Developing alternative sourcing strategies.
• Investing in renewable energy (solar power).
• Implementing energy-saving measures and improving energy efficiency.
• Developing low-carbon materials (Eco-Family materials).
• Participating in government low-carbon transition programs.
• Conducting supplier sustainability self-assessments.

Supply Chain Management

Supplier Audits: 78 supplier sustainability self-assessments conducted in 2023.

Responsible Procurement

• Supplier Code of Conduct
• Sustainability requirements for suppliers
• Regular supplier assessments

Climate-Related Risks & Opportunities

Physical Risks

• Drought

Transition Risks

• Carbon pricing
• Increased reporting requirements
• Changes in customer demand
• Increased raw material costs

Opportunities

• Development of low-carbon products and services
• New markets for sustainable products
• Improved energy efficiency

Reporting Standards

Frameworks Used: GRI Standards 2021, TCFD, SASB - Apparel, Accessories and Footwear

Certifications: ISO 14001, ISO 45001, ISO 9001, ISO 13485, ISO 27001, Higg FEM, Higg FSLM, Bluesign®, Global Recycled Standard, FSC CoC, OEKO-TEX® Standard 100, USDA bio-based materials

Third-party Assurance: Not disclosed

Sustainable Products & Innovation

• Eco-Family materials (bio-based foam, bio-based film, recycled materials)