Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Responsibility
• Corporate Governance

Environmental Achievements

• Reduced waste by 15% from 2019 to 2020 (172 metric tons)
• Obtained carbon footprint verification for X10SL and X11SL chains
• Installed solar power systems reducing carbon emissions by approximately 1,000 metric tons per year
• Recycled heat from manufacturing process in Shenzhen plant, reducing carbon emissions by approximately 500 metric tons annually

Social Achievements

• Sponsored cycling events and supported cycling-related organizations
• Donated one day's salary from employees to establish a breast cancer center
• Sponsored the Love Now Youth Volunteer Association's cycling around Taiwan service project
• Conducted employee training and education programs with 100% completion rate
• Average monthly salary of base-level employees is 2 times more than the statutory basic salary in Taiwan

Governance Achievements

• Strengthened Board diversity with 43% independent directors and 14% female representation
• Established an ESG Committee
• Established an Audit Committee
• Complied with all applicable laws and regulations
• Nominated as the company with the best IR team by IR Magazine

Climate Goals & Targets

Environmental Challenges

• Climate change impacts on raw material supply, water and energy supply, and extreme weather events
• Supply chain disruptions
• Market competition
• Trade protection

Mitigation Strategies

• Increased local sourcing proportion
• Developed multi-source supply solutions
• Maintained appropriate inventory levels
• Implemented energy-saving measures and carbon reduction programs
• Developed anti-rust chains for extreme weather
• Strengthened risk management program

Supply Chain Management

Responsible Procurement

• Maintaining more than two suppliers to decentralize supply sources

Climate-Related Risks & Opportunities

Physical Risks

• Changes in temperature and precipitation patterns
• Uncertainty of water and energy supply
• Extreme weather conditions

Transition Risks

• Government regulations

Opportunities

• Energy shortage and price hike
• Consumer awareness towards environmental protection
• Government policies encouraging bicycle riding

Reporting Standards

Frameworks Used: GRI

Sustainable Products & Innovation

• ECO Solution chains (X10SL, X11SL)
• Anti-rust chains

Awards & Recognition

• Sustainalytics ESG rating: top 1 in bicycle industry, top 9% globally

Environmental Metrics

ESG Focus Areas

• Governance
• Environment
• Social

Environmental Achievements

• Achieved a 3.52% reduction in carbon emissions in Taiwan operations, exceeding the 3% annual reduction target set by the Bicycling Alliance for Sustainability (BAS).

Social Achievements

• Maintained an overall employee satisfaction rate of 71%.

Governance Achievements

• Established an ESG Committee in 2021 to address sustainability-related matters.
• Obtained ISO 14064-1:2018 verification statements for its Taiwan operations and Shenzhen factory in 2022.

Climate Goals & Targets

Environmental Challenges

• Climate-related risks, including energy-related regulatory risks, greenhouse gas-related regulatory risks, water resource-related regulatory risks, upstream raw material disruptions or cost increases, and downstream consumer or client preference shifts.
• Exchange rate and interest rate risks
• Inflation risk
• Information security risk
• Market risk (counterfeit products and price competition)
• Raw material risk (price volatility and supply chain disruptions)

Mitigation Strategies

• Implementing the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and conducting climate risk scenario analysis.
• Joining the Bicycling Alliance for Sustainability (BAS) and aligning with its carbon reduction roadmap.
• Closely monitoring economic changes, market dynamics, and interest rate fluctuations; implementing hedging measures for foreign exchange exposure.
• Regular cybersecurity education and awareness training; establishing firewall defense and data backup mechanisms.
• Introducing high-performance chains for premium bicycles and offering competitively-priced entry-level chains.
• Implementing anti-counterfeiting measures.
• Establishing adequate safety stock levels and fostering partnerships with multiple suppliers.
• Implementing a quality monitoring mechanism with suppliers.

Supply Chain Management

Responsible Procurement

• Preference for suppliers in southern Taiwan to reduce environmental footprint.
• Comprehensive supplier management policy evaluating suppliers' financial stability, supply capabilities, and risk management abilities.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events causing delays in raw material transportation; impact on own operational activities due to extreme weather events; rising temperatures or extreme cold weather; increased water shortage events.

Transition Risks

• Energy-related regulatory risks; greenhouse gas-related regulatory risks; water resource-related regulatory risks; upstream raw material disruption or cost increases; downstream consumer or client preference shift.

Opportunities

• Energy-efficient transportation and production; development of renewable energy sources; new market partnerships; aftermarket development for non-fuel vehicles; government incentive measures; development or expansion of low-carbon products and services; low-carbon or innovative products and services; research and innovation for new products and services.

Reporting Standards

Frameworks Used: GRI Standards, TCFD, UN SDGs

Certifications: ISO 14064-1:2018

Sustainable Products & Innovation

• Green packaging materials; eco-friendly cups made from recycled coffee grounds.