Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employee Care
• Corporate Governance
• Social Engagement
• Ethical Corporate Management
• Supply Chain Sustainability

Environmental Achievements

• Reduced energy intensity by 3.7% compared to the previous year.
• Reduced greenhouse gas emission intensity by 14.8% compared to the previous year.
• Installed solar panels generating 3.98 megawatts of capacity.
• Introduced 10 magnetic-bearing chillers, reducing energy consumption by 50% compared to traditional machines.
• Replaced on-machine furnace with a centralized melting furnace, saving 233 thousand cubic meters of natural gas.
• Introduced 5 die-casting electric holding furnaces, saving 10.56 thousand cubic meters of natural gas.
• Developed new energy-efficient products, saving 1.75 million kWh in production electricity and reducing carbon emissions by 1,119 metric tons.
• Achieved a 91% waste recovery and reuse rate.
• Recovered 300 tons of phosphoric acid.
• Reduced waste cutting fluid by 600 tons.
• AirTAC Ningbo obtained ISO 14001 certification in 2023.

Social Achievements

• Implemented Employee Assistance Program (EAP) counseling for 4,172 individuals.
• Maintained a decreasing trend in employee turnover rate over the past three years (2.9%, 2.3%, 2.26% for 2020, 2021, and 2022 respectively).
• Invested NT$49 million in Sunshine Action and NT$41.33 million in Blue Student Aid Project.
• Provided 203,418 hours of employee education and training.
• Achieved 100% performance evaluation rate.
• Promoted rejection of online bullying with 3,037 participants in training.

Governance Achievements

• Established the position of Chief Information Security Officer (CISO) and a dedicated information security unit.
• Established the position of Chief Corporate Governance Officer.
• Held 6 Board of Directors meetings and 6 Audit Committee meetings with 100% attendance.
• Conducted an external board performance evaluation by an independent organization.
• Implemented an environmental protection responsibility system at AirTAC Ningbo.
• No violations of major environmental, economic, and social laws and regulations.

Climate Goals & Targets

Environmental Challenges

• International Carbon Tax and Quota Requirements
• Domestic and International Greenhouse Gas Reduction Requirements
• Impact on Corporate Reputation
• Extreme Weather Events
• Supply Interruption

Mitigation Strategies

• Increasing the installation of solar energy panels.
• Implementing technological improvements and upgrading equipment to enhance energy efficiency.
• Introducing ISO 14001 environmental management system.
• Annually publishing sustainability reports and actively engaging with stakeholders.
• Improving wastewater treatment and recycling, enhancing water usage efficiency.
• Maintaining alternate suppliers and safe inventory levels.
• Establishing emergency response management procedures.
• Regularly review the safety stock quantity of all raw materials and make a timely request of reasonable quantities.
• Proactively develop qualified suppliers to increase supply sources.

Supply Chain Management

Supplier Audits: 17 on-site audits in 2022

Responsible Procurement

• Compliance with RoHS 2.0 requirements
• Supplier inspection reports
• Business integrity declaration
• Confidentiality agreements
• Green Procurement Statement
• Prioritization of suppliers with IATF 16949 and ISO 14000 certifications
• ESG selection system

Climate-Related Risks & Opportunities

Physical Risks

• Water and power supply instability caused by high temperatures and droughts
• Increasing electricity costs
• Drought risks

Transition Risks

• International Carbon Tax and Quota Requirements
• Domestic and International Greenhouse Gas Reduction Requirements
• Impact on Corporate Reputation

Opportunities

• Enhancing Efficiency and Reducing Energy Consumption
• Improving Water Resource Efficiency
• Research and Development of Low-Carbon Products
• Government Subsidies

Reporting Standards

Frameworks Used: GRI Standards, TCFD, SASB

Certifications: ISO 45001, ISO 14001 (AirTAC Ningbo)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 8 (Decent Work and Economic Growth)

AirTAC's initiatives contribute to these goals through energy efficiency improvements, sustainable product development, waste reduction, responsible supply chain management, and employee well-being programs.

Sustainable Products & Innovation

• Flow control valves (2WA, 2W, 2SA/2LA, 2S/2L series)
• 6D series integrated solenoid valves
• JSK50/63 series mini cylinders
• Lightweight cylinders for automotive manufacturing

Awards & Recognition

• Top 100 Business Leaders in Taiwan (Chairman)
• Outstanding Asian Industrial Company of 2022 (Asiamoney Magazine)

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Human Rights and Employee Care
• Occupational Safety
• Corporate Governance
• Supply Chain Management
• Community Investment

Environmental Achievements

• Reduced energy intensity by approximately 19.7% compared to 2021.
• Reduced greenhouse gas intensity by approximately 27.5% compared to 2021.
• Achieved 99% LED lighting installation in AirTAC Taiwan and AirTAC Ningbo plants, and 100% in AirTAC Guangdong.
• Saved 140,000 kWh of electricity annually by replacing fluorescent tubes with LED lights.
• Saved 450,000 kWh of electricity annually by using variable frequency drive air compressors.
• Reduced electricity consumption by approximately 48% in 75 vulcanizing machines through energy-saving upgrades, saving 980,000 kWh annually.
• Reduced electricity consumption by approximately 15% in 19 air compressors through control system installation, saving 840,000 kWh annually.
• Saved 800,000 kWh annually by introducing six magnetic levitation centrifugal chillers.
• Saved 180,000 cubic meters of natural gas annually by replacing die-casting machine side furnaces with electric insulation furnaces.
• Reduced carbon emissions by about 2,834 tons of CO2 equivalent through product design optimization, saving approximately 258 tons of aluminum annually.
• Reduced carbon emissions by about 316 tons of CO2 equivalent through product optimization, saving approximately 105 tons of copper annually.
• AirTAC Taiwan and AirTAC Ningbo obtained ISO 14001 certification in 2023.

Social Achievements

• No major incidents of employee or contractor injuries occurred.
• 13,011 employees received occupational safety and health training (78,778 hours).
• 23,234 employees participated in emergency response drills.
• Average employee training hours increased to 28.69 in 2023 from 19.16 in 2021.
• Employee turnover rate decreased to 1.92% in 2023 from 2.26% in 2021.
• Invested NT$104.9 million in Sunshine Action, benefiting 1,538 households.
• Invested NT$41.66 million in Blue Student Aid Project, supporting 1,298 individuals.

Governance Achievements

• Established sustainability performance indicators linked to senior management compensation.
• Board of Directors and Audit Committee held six meetings each in 2023 with 100% attendance.
• Internal assessments for the Board of Directors, board members, Audit Committee, and Compensation Committee were all excellent.
• No violations of major environmental, economic, and social laws and regulations.
• Established an independent reporting mailbox on the official website for whistleblowing (no reports received in 2023).

Climate Goals & Targets

Environmental Challenges

• Climate change risks including international carbon tax and quota requirements, domestic and international greenhouse gas reduction requirements, impact on corporate reputation, and extreme weather events.
• Supply chain disruptions due to extreme weather events.
• Potential talent loss due to poor compensation and benefits.

Mitigation Strategies

• Increasing the installation of solar energy panels.
• Implementing technological improvements and optimizing production processes to enhance energy efficiency.
• Introducing ISO 14001 environmental management system.
• Annually publishing sustainability reports and actively engaging with stakeholders.
• Maintaining alternate suppliers and safe inventory levels.
• Establishing emergency response management procedures.
• Offering competitive overall compensation package and benefits system.

Supply Chain Management

Supplier Audits: 36 on-site audits in 2023.

Responsible Procurement

• Green Procurement Statement
• Responsible mineral procurement practices
• Compliance with RoHS regulations
• ESG evaluation criteria for new suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (droughts, floods)
• Water and power supply instability
• Increased electricity costs

Transition Risks

• International Carbon Tax and Quota Requirements
• Domestic and International Greenhouse Gas Reduction Requirements
• Impact on Corporate Reputation

Opportunities

• Enhancing Efficiency and Reducing Energy Consumption
• Improving Water Resource Efficiency
• Research and Development of Low-Carbon Products
• Government Subsidies

Reporting Standards

Frameworks Used: GRI Standards, TCFD, SASB guidelines, Taiwan Stock Exchange Corporation Rules Governing the Preparation and Filing of Sustainability Reports by TWSE Listed Companies, Sustainable Development Best Practice Principles for TWSE/GTSM Listed Companies

Certifications: ISO 14001 (AirTAC Taiwan, AirTAC Ningbo), ISO 45001 (AirTAC Taiwan)

Third-party Assurance: Deloitte Touche Tohmatsu Certified Public Accountants LLP (limited assurance)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

The report highlights how various initiatives contribute to these SDGs.

Sustainable Products & Innovation

• New 4V solenoid valve (6% lower power consumption)
• Lightweight JSK and SC cylinder products

Awards & Recognition

• Top 100 Business Leaders in Taiwan (Chairman, 2022)
• Outstanding Asian Industrial Company of 2022 (Asiamoney Magazine)