Climate Change Data

Environmental Metrics

ESG Focus Areas

• Circular Economy
• Environmental Protection
• Employee Well-being
• Community Engagement
• Sustainable Forestry

Environmental Achievements

• Successfully launched "Easy Straw Paper" and "nPulp tissue paper", reducing reliance on plastic straws.
• Installed Taiwan's largest biogas power generation system (2,400 kW) in Xinwu plant, generating 20 million kWh annually.
• Converted fuel oil boilers to natural gas boilers in major packaging divisions.
• Constructed 12MW solar power stations across plants, generating an average of 12 million kWh per year.
• Improved water reuse cycles to an average of five times at main manufacturing sites and over 20 times at consumer product plants.
• Reused 1.8 million tons of water across 30 plants.
• Jiutang plant's flue gas heat recovery system reduced CO2 emissions by over 6,400 tons annually.
• Developed a new type of light, high-strength "concrete without cement" using production residues.

Social Achievements

• Launched "YFY Life" employee website, connecting employees across the Taiwan Strait (83,832 page views).
• Upgraded employee uniforms after 15 months of consultation and feedback.
• Eight Taiwanese operating sites completed the Healthy Workplace Start-up Certification.
• Yangmei and Qingshui plants received the “Badge of Accredited Healthy Workplace”.
• Xinwu plant celebrated Muslim Eid al-Fitr with Indonesian associates.
• Organized cross-strait consensus training for junior management personnel.
• Held outdoor training camps for Nanjing and Suzhou plants.
• Qingshui plant held a “power camp” for Line-six associates.
• Launched a Train the Trainer to Train (TTT) program for internal trainer cultivation.
• Cooperated with Puppet Beings Theatre Company to create "The Whimsical World of Boxes", a puppet show touring Taiwan.
• Yangzhou plant launched a neighborhood care project, assisting 232 residents.
• Launched the second three-year “Taitung Academy” program, supporting children's literacy.

Governance Achievements

• Board of Directors passed the Code of Sustainability and Social Responsibility, Corporate Governance Code, and Code of Integrity Management.

Climate Goals & Targets

Environmental Challenges

• Reduced circulation quota of papermaking raw materials (recycled paper) in Asia due to environmental protection policy adjustments in Mainland China.
• US tariff sanctions on Mainland China triggered trade disputes and global economic turmoil.
• Hualien earthquake damaged Chung Hwa Pulp Hualien Plant machinery.

Mitigation Strategies

• Developed alternative sourcing strategies.
• Implemented climate change adaptation measures, including strengthening typhoon-resistant and earthquake-resistant equipment.
• Repaired damaged machinery at Hualien plant and provided disaster relief.

Supply Chain Management

Supplier Audits: 1,076 suppliers audited, 100% improvement rate.

Responsible Procurement

• Periodic supplier audits focusing on product quality, delivery, compliance, and prices.
• Preference for local suppliers (90% in Taiwan).

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Natural disasters
• Water scarcity
• Frequent earthquakes
• Fires

Transition Risks

• Stricter environmental regulations
• Increased energy and fuel costs

Opportunities

• Development of low-carbon products
• Investment in high-efficiency equipment
• Renewable energy development

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001, ISO 50001, FSC

Third-party Assurance: SGS

UN Sustainable Development Goals

• Goal 1
• Goal 6
• Goal 7
• Goal 9
• Goal 15

Initiatives align with SDGs through community development projects, water resource management, renewable energy development, resilient infrastructure, and sustainable forestry.

Sustainable Products & Innovation

• Easy Straw Paper
• nPulp tissue paper
• nPulp pulp board
• Alkali-activated slurry

Awards & Recognition

• 2018 Taiwan Corporate Sustainability Awards (Gold Award)
• Waste Resource Circular Economy Evaluation (One-star)
• Edison Award (Silver medal for nPulp)

Environmental Metrics

ESG Focus Areas

• Circular Economy
• Renewable Energy
• Carbon Sequestration
• Waste Reduction
• Water Management
• Biodiversity
• Occupational Health and Safety
• Community Engagement
• Supplier Sustainability

Environmental Achievements

• Achieved an average annual energy saving rate of 1.57% across Taiwan plants from 2015-2019.
• Launched Taiwan's largest biogas power generation system.
• Recycled nearly 98% of recycled paper in paper manufacturing processes.
• Recycled water used in manufacturing processes, with each drop reused an average of five times at main sites and over 20 times at consumer product plants.
• Developed and produced typing paper using sugarcane bagasse.
• Reduced coal burning by approximately 87,800 tons per year and carbon dioxide by approximately 46,814 tons per year through a non-coal CHP system.
• Developed nPulp, a bio-pulp made from straw, winning the Edison Award in 2014 and earning seven international certifications.

Social Achievements

• Won five major awards for healthy workplace promotion.
• Launched the "Informal Waste Recycler and Disadvantaged Care Project" to care for disadvantaged residents in nearby communities.
• Continued with the "YFY Taitung Academy" initiative to strengthen childhood education resources in rural areas.
• Organized local ecology tours for employees on Earth Day.
• Organized community events such as the "YFY Mosquito Cinema" and participated in the Tainan Street Arts Festival.

Governance Achievements

• Introduced board performance evaluations to strengthen corporate governance.
• Established the "Sustainability and Social Responsibility Office" to coordinate sustainable business operations and compile annual reports.
• Required all suppliers to sign an "integrity commitment letter".

Climate Goals & Targets

Environmental Challenges

• California wildfires and Australian bushfires impacting carbon cycle.
• US-China trade war reducing channels and quotas for papermaking raw materials.
• Global collapse in pulp prices.
• Difficulties in recycling paper cups due to plastic lining.
• Difficulties in biodegrading PLA bioplastic.
• Challenges in developing truly recyclable paper cups and lids.
• Challenges in developing recyclable food packaging.
• Earthquake damage to Hualien plant machinery.

Mitigation Strategies

• Adhering to biological and industrial cycle principles.
• R&D focus on plastic-free paper cups.
• Developing water-based coatings for cup seals.
• Developing thermal paper with physical color-change technology.
• Investing in recyclable food packaging paper.
• Implementing source-tracing water management at Hualien plant.
• Developing the "Production Discharge Water Management Manual".

Supply Chain Management

Supplier Audits: 1,692 suppliers completed evaluations

Responsible Procurement

• Requiring suppliers to sign an "integrity commitment letter"
• Prioritizing procurement with FSC and ISO 14001 certified manufacturers

Climate-Related Risks & Opportunities

Physical Risks

• Global warming
• Extreme weather events
• Frequent earthquakes

Transition Risks

• Lack of fossil fuels
• Lack of water resources
• Environmental protection regulations and initiatives
• Energy/fuel tax, waste and sewage treatment fee

Opportunities

• Rise of low-carbon products
• Strengthening typhoon-resistant and earthquake-resistant equipment
• Use of alternative biofuels
• Policy incentives and subsidies

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001, ISO 50001, FSC

Third-party Assurance: SGS

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• nPulp
• Biogas power generation
• Recyclable paper cups
• Recyclable food packaging

Awards & Recognition

• Taiwan Corporate Sustainability Award (Gold)
• Edison Award (Silver)
• Asia Responsible Entrepreneurship Awards (AREA) Green Leadership Award
• National Healthy Workplace Award
• Taipei City Healthy Workplace Award
• My Health Bank Download Competition (First Place)
• iSports Certification
• Happiness Enterprise Award
• Yushan Award: Best Product Award
• Taiwan Golden Print Awards (First Prize)
• Excellent Green Service and Environmental Enterprises Award

Environmental Metrics

ESG Focus Areas

• Circular Economy
• Climate Change
• Carbon Reduction
• Carbon Fixation
• Renewable Energy
• Water Management
• Waste Management
• Occupational Health and Safety
• Employee Well-being
• Community Relations
• Supplier Sustainability
• Governance

Environmental Achievements

• Reduced coal usage by approximately 618,619 tons of carbon dioxide equivalent through the use of alternative fuels.
• Achieved a water reuse rate of more than 90% in 2020.
• YFY Packaging Xinwu Plant obtained the BS 8001 international circular economy certification with the highest level (Level 4 Optimizing).
• Developed and implemented Taiwan's first zero-coal-fired SRF cogeneration boiler.
• Operates Taiwan's earliest and largest lignin biomass energy power generation system.
• Operates Taiwan's largest industrial biogas power generation system.

Social Achievements

• Maintained zero occupational disease rate (ODR).
• Implemented various employee well-being initiatives, including health checks, EAP programs, and holiday gifts.
• Supported local communities through various initiatives, including the “YFY Taitung Primary School” volunteer project and community charity programs.
• Provided sufficient daily necessities during the pandemic, including masks and toilet paper.
• Achieved a high proportion of local senior management across Taiwan, Mainland China, and Vietnam.

Governance Achievements

• Established a comprehensive ESG governance structure, including the “Corporate Governance Code”, “Code of Integrity Management”, and “Sustainability and Social Responsibility Code”.
• Implemented a robust integrity management system, including whistleblower channels and regular training.
• Established the “YFY Blockchain Supply Chain Finance Platform Alliance” to enhance supply chain transparency.

Climate Goals & Targets

Environmental Challenges

• Climate change related risks (extreme weather, higher fossil fuel prices, water shortages).
• Government environmental regulations becoming more stringent.
• Supply chain disruptions due to the pandemic.

Mitigation Strategies

• Investing in renewable energy research and development.
• Implementing energy-saving programs and using alternative fuels.
• Strengthening water resources management and recycling.
• Actively participating in industrial platforms and regulatory trends.
• Developing low water consumption products.
• Implementing supply chain risk management strategies.

Supply Chain Management

Supplier Audits: At least once a year for recycled raw material suppliers.

Responsible Procurement

• Prioritizing suppliers with environmental certifications (FSC, ISO 14001).
• Requiring suppliers to sign "Honest Transaction and Integrity Commitment Letter".

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather (heavy rain, strong winds)
• Damage to plant equipment

Transition Risks

• Higher prices for fossil fuels
• Government environmental regulations

Opportunities

• Participation in the renewable energy market
• Government incentives for energy conservation and carbon reduction

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: BS 8001 (YFY Packaging Xinwu Plant), ISO 9001, ISO 14001, ISO 45001, ISO 50001 (various plants), FSC (various plants)

Third-party Assurance: SGS (AA1000 Type II Moderate Assurance Level)

UN Sustainable Development Goals

• SDG 7 (Affordable and Clean Energy)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)
• SDG 15 (Life on Land)

YFY's initiatives contribute to these goals through renewable energy generation, waste reduction, carbon fixation, and sustainable forestry practices.

Sustainable Products & Innovation

• Non-plastic food safety paper
• Orange House Five-in-One Laundry Ball

Awards & Recognition

• 2020 16th GlobalView Magazine Corporate Social Responsibility Award
• 2020 Energy-saving Benchmarking Award from the Ministry of Economic Affairs (Yangmei Plant)
• 2nd National Enterprise Environmental Protection Award (Yangmei Plant)
• Asian Corporate Social Responsibility Award-Circular Economy Award (Chung Hwa Pulp)
• 2020 National Pandemic Prevention Team Medal

Environmental Metrics

ESG Focus Areas

• Circular Economy
• Climate Change
• Renewable Energy
• Carbon Reduction
• Sustainable Materials
• Occupational Health and Safety
• Employee Well-being
• Supply Chain Sustainability
• Corporate Governance

Environmental Achievements

• Reduced carbon (Scopes 1 and 2) emissions by 10% in Taiwan compared to 2021
• Reduced Taiwan's Scope 1 emissions by 14% compared to 2021 through alternative fuel use
• Achieved 96% waste to resource ratio
• Increased total alternative energy ratio to 36.2% across business groups and 43.4% in Taiwan
• Water recycling rate of 81% or higher in Taiwan's paper plants
• Saved 21,785,883 kWh, equivalent to reducing 11,507 metric tons of CO2e

Social Achievements

• Invested over NT$23 million in social welfare initiatives
• Over 3,300 employees participated in health promotion activities
• Launched Blockchain Supply Chain Financial Platform Alliance, with 280+ suppliers participating and raising over NT$800 million in six months
• YFY Taitung Academy contributed over NT$3.85 million in sponsorship and 3,800 hours of reading time

Governance Achievements

• Ranked 6%-20% in the 2022 Corporate Governance Evaluation for listed companies
• Established the “Carbontech & Management Group” to enhance renewable energy, energy storage, and the carbon cycle
• Established the “Sustainable Development Committee” to oversee ESG performance
• 565 suppliers signed the Supplier Code of Conduct
• 107 supplier partners participated in ESG education and training

Climate Goals & Targets

Environmental Challenges

• Climate change related risks (drought, water shortage, typhoons, floods)
• Transition risks (carbon fees, GHG cap-and-trade schemes)
• Supply chain disruptions
• Stakeholder concerns regarding environmental impact

Mitigation Strategies

• Adopting alternative fuels (biomass, SRF, renewable energy)
• Improving energy efficiency
• Implementing water-saving plans and increasing water recycling
• Developing green products and materials
• Educating stakeholders on circular economy benefits
• Developing disaster response plans
• Implementing supplier code of conduct and due diligence

Supply Chain Management

Supplier Audits: 565 suppliers signed Code of Conduct; Sustainability risk assessment to be introduced in 2024

Responsible Procurement

• Supplier Code of Conduct
• ESG training for suppliers
• Prioritizing renewable energy and recycled materials in procurement

Climate-Related Risks & Opportunities

Physical Risks

• Drought
• Water shortage
• Flooding
• Typhoons

Transition Risks

• Carbon fees
• GHG cap-and-trade schemes
• Customer preference shifts towards sustainability

Opportunities

• Development of energy-efficient products
• Participation in carbon trading market
• Growth in low-carbon goods and services

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: ISO 14001, ISO 45001, ISO 50001, FSC, PEFC, BS 8001

Third-party Assurance: SGS (AA1000 Type 2 Moderate Assurance)

UN Sustainable Development Goals

• Goal 12: Responsible Consumption and Production
• Goal 7: Affordable and Clean Energy
• Goal 13: Climate Action
• Goal 8: Decent Work and Economic Growth

YFY's initiatives contribute to these goals through circular economy practices, renewable energy use, carbon reduction efforts, and focus on employee well-being and fair labor practices.

Sustainable Products & Innovation

• CircuWell® paper-based food containers
• nPulp technology
• Paper yarn

Awards & Recognition

• Global Views Magazine ESG Corporate Sustainability Award
• TCSA Sustainable Enterprise Excellence Award
• CIER Circular Economy Enterprise Award
• Healthy Workplace Certification
• CHR Healthy Corporate Citizen Pledge Certification
• Taiwan Corporate Sustainability Award

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards, SASB Sustainability Accounting Standard for the Pulp & Paper Products industry, TCFD Recommendations

Certifications: Null

Third-party Assurance: DNV Business Assurance Co., Ltd.

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed