Climate Change Data

Environmental Metrics

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Corporate Social Responsibility
• Corporate Governance

Environmental Achievements

• Total energy savings amounted to 87.707 metric tons of CO2e.
• 94.39% recycled paper material in purchased packaging materials.

Social Achievements

• Launched various employee welfare measures, including club activities, travel subsidies, and festival gifts.
• Total employee training hours in 2022 were 2,425.5 hours.

Governance Achievements

• Established a Corporate Social Responsibility Executive Committee (renamed Sustainability Executive Committee in 2022).
• Implemented the “Ethical Corporate Management Best Practice Principles” and “Principles for Handling Violation of Ethical Corporate Management”.

Climate Goals & Targets

Environmental Challenges

• Fluctuations in raw material and energy prices.
• Fierce industry competition.
• Stricter government food safety regulations.

Mitigation Strategies

• Continuous research and development of new products.
• Strengthened marketing planning and brand management.
• Improved product quality and production efficiency through equipment upgrades and automation.

Supply Chain Management

Supplier Audits: 65 supplier visits in 2021 (34.57% of total suppliers)

Responsible Procurement

• Requires suppliers to be registered and approved by local governments.
• Requires suppliers to meet company specifications or obtain quality verification from third-party organizations.

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons, floods, droughts

Transition Risks

• Regulatory changes related to carbon emissions and waste.

Opportunities

• Development of low-carbon products.

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 9001, ISO 22000, HACCP, ISO 45001:2018

Third-party Assurance: Deloitte (limited assurance)

Sustainable Products & Innovation

• Clean label products
• Products with reduced salt and sugar

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Food Safety
• Employee Welfare
• Corporate Social Responsibility

Environmental Achievements

• Total energy savings amounted to 1,968.699 GJ, equivalent to 118.566 metric tons of CO2e emissions (compared to 1,149.155 GJ of total energy savings and 52.758 metric tons of CO2e emissions in 2022).
• In 2023, the proportion of recycled paper material used in purchased packaging materials was 93.00% (compared to 93.31% in 2022). Recyclable packaging materials accounted for 97.57% of the total packaging material used (compared to approximately 96.84% in 2022).

Social Achievements

• Obtained FSSC-22000 food safety management system certification.
• Total number of employee training hours in 2023 was 2,662.5 hours.
• In 2023, the number of recordable occupational injuries was 7, with a recordable occupational injury rate of 1.625.
• In 2023, there were no incidents of fire, no casualties, and the casualty rate among the total number of employees was 0%.

Governance Achievements

• Amendments to certain provisions of the 'Corporate Governance Best Practice Principles' on March 29, 2023.
• Appointed a professional stock affairs agency (Capital Securities Co., Ltd.) to handle the shareholders' meeting's relevant affairs and various stock affairs.
• Insured liability insurance for all directors.

Climate Goals & Targets

Environmental Challenges

• Inflation has reduced consumer willingness to spend, leading to a contraction in consumption, resulting in insufficient revenue growth and a slowdown in performance.
• The ongoing Russia-Ukraine war, the Israel-Palestine conflict, and the persistent US-China tensions have further intensified inflation, leading to reduced consumer spending.
• At the beginning of the year 2024, due to food safety issues, consumer confidence was affected, which in turn impacted overall performance.
• Fierce competition in the food industry.

Mitigation Strategies

• Develop higher-priced products, such as bowl noodles and personal instant meals, to enhance competitiveness and meet consumer demand.
• Continuous Equipment Automation Updates
• New Products: Focus on developing our own brand while continuing to cater to the personalized product market.
• Idle Asset Development
• Overseas Investments: Increase production capacity to meet customer demand and generate higher sales.
• Prioritize the highest standards of food safety, providing necessary items to the market while adjusting production capacity to offer a stable supply of the highest quality products to consumers and the market.
• Strengthen research and development or introduce domestic and foreign “differentiated” new products with the market potential to create profits and adjust the sales proportion of high-margin products to maintain a continuous growth of mature and profitable products.
• Strengthen the marketing planning function, make good use of emerging social media, rebuild brand positioning and popularity, and use brand management to indirectly enhance the company's corporate image, shape product attraction, and attract the favor of consumer groups.
• Integrate business, marketing and research and development, adopt self-production, separation of production and sales, and import to launch products under the most favorable conditions to promote business performance and consolidate the market.

Supply Chain Management

Supplier Audits: 70/188 (37.20%) (2023)

Responsible Procurement

• Requires suppliers to be registered and approved by local governments
• Produce goods that meet the company's specifications or obtain quality verification from third-party reputable organizations
• Suppliers must also have control mechanisms in place, such as safety certifications or provide proof of food additives and hygiene inspection reports.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme Climate Events Causing Interruptions to Power, Water Supply, or Supply Chain

Transition Risks

• Changes in customer consumption behavior, market information uncertainty, and shifts in consumer preferences due to climate change.
• Changes in government regulations and policies

Opportunities

• Further understanding of the Company’s resilience in the face of climate changes.
• Allocating Company resources and attention to the most urgent risk improvements.
• Shifting focus to explore new markets and develop new products.

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO-9001, ISO22000, HACCP, FSSC-22000, ISO 45001:2018

Third-party Assurance: Deloitte

Sustainable Products & Innovation

• Clean label products
• Non-GMO products
• Products with simple, clean ingredients
• Plant-based products

Awards & Recognition

• Dian Dian Eat Zha Jiang Beef Noodles won the New Taste Award in the “2023 New Taste Food Trend Selection”