Climate Change Data

Environmental Metrics

ESG Focus Areas

• Ethics and Integrity
• Economic Performance
• Labor-employment relations
• Training, Education
• Regulation Compliance

Environmental Achievements

• Purchased green electricity for major operational sites
• Leased more energy-efficient business vehicles
• Organized tree planting activities
• Reduced carbon emissions (specific figures not provided, but a goal of 50% reduction by 2030 and carbon neutrality by 2050 is mentioned)

Social Achievements

• Donated to the Boyo Social Welfare Foundation for the fourth consecutive year to support education in remote areas
• Subsidiaries in Shanghai and Guangzhou continued donating to assist underprivileged students in rural Guangxi Ping Le County
• Participated in the Clean Air, Clear Mind Action event
• Committed NT$50 million to the Mega Bank Green Deposit project

Governance Achievements

• Ranked in the top 5% for corporate governance evaluations for six consecutive years
• Established an Audit Committee
• Established a Sustainability Committee
• Established a Risk Management Committee

Climate Goals & Targets

Environmental Challenges

• Global economic fatigue
• Raw material price fluctuations
• Trade antagonism between the United States and China
• Geopolitical conflicts
• Major supply chain adjustments
• Inflation
• Competition from local silicone manufacturers
• Climate change related physical and transition risks (e.g., typhoons, floods, energy price increases)

Mitigation Strategies

• Industrial transformation and strategy to diversify geopolitical risks
• Development of ESG-oriented products
• Establishment of Topco USA and Topco Thailand
• Inventory optimization
• Negotiating with customers and suppliers to minimize the impact of raw material and energy price increases
• Energy conservation measures (LED lighting, energy-efficient air conditioning, hybrid/electric vehicles)
• Purchasing green electricity
• Tree planting projects
• Emergency response training and facilities
• Developing high-value-added material applications

Supply Chain Management

Supplier Audits: Periodic audits of production plants (including Shin-Etsu plants)

Responsible Procurement

• Supplier procurement contracts
• CSR Commitment
• Supplier Self-Assessment Questionnaire Survey
• Preference for suppliers with environmental awareness

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons
• Floods
• Extreme weather

Transition Risks

• National carbon reduction goals and policies
• Increased energy costs
• Carbon fees/taxes

Opportunities

• Tree planting projects
• Purchasing green electricity
• Energy efficiency improvements

Reporting Standards

Frameworks Used: GRI

Third-party Assurance: GREAT International Certification Co., Ltd.

Sustainable Products & Innovation

• ESG-oriented products
• Water-based, solvent-free, low-carbon materials