Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Environmental Protection
• Employee Relations
• Social Welfare

Environmental Achievements

• Chung Shui mill received the “2021 Taiwan Circular Economy Enterprise Award” from the Environmental Protection Administration, Executive Yuan
• Chung Shui mill received the “2021 Green Procurement Enterprise Award” from Taichung City Government
• Yang Mei mill received the “Private Enterprise and Organization Green Procurement Award” from Taoyuan City Government
• Reduced total carbon reduction from overall fossil fuel use by approximately 7,280 tons of CO2 equivalent.
• Saved an estimated 1.669 million kilowatt-hours of electricity, which was equivalent to a reduction of 838 metric tons of carbon dioxide equivalent

Social Achievements

• Listed on the TWSE in August 2021 and became the largest consumer product manufacturer in Taiwan
• Received the 6th “Taiwan Mittelstand Award”
• Became the first consumer product manufacturer in Taiwan to receive the “Best Companies to Work for in Asia 2021” from HR Asia
• Provided aid to support medical personnel of Taoyuan Hospital and their families
• Provided aid to support recyclers in Taoyuan

Governance Achievements

• Established a dedicated unit for corporate social responsibility (renamed Sustainability Office in 2022)
• Established the “Sustainability and Social Responsibility Guidelines”
• 100% attendance rate at Board of Directors meetings in 2021
• Established the “Ethical Corporate Management Best Practice Principles” and “Code of Ethical Conduct”

Climate Goals & Targets

Environmental Challenges

• Policy and regulatory risks
• Labor shortage and talent gap risks
• Business reputation risks
• Financial risks (fluctuations in raw material prices)
• Operational risks (sales market concentration, supply chain disruptions)
• Climate change risks

Mitigation Strategies

• Assigned Legal Department to manage legal affairs and appointed external legal consultants
• Modified internal regulations and Work Rules in response to Labor Standards Act amendments
• Implemented comprehensive real-time monitoring of brand reputation
• Developed countermeasures and engaged with key stakeholder groups
• Optimized service capability of front-line communication personnel
• Adjusted procurement and pricing strategies to reduce impact of external environment
• Maintained good relations with multiple financial institutions
• Diversified product categories and distribution business models
• Reviewed supply system, allocated resources, and adjusted production mode
• Implemented flexible supply strategies
• Monitored political and economic changes
• Strengthened supplier management strategies
• Upgraded information security management
• Implemented energy conservation plans and participated in demand response load management
• Implemented adaptation and mitigation actions (energy conservation, carbon reduction, water conservation)

Supply Chain Management

Supplier Audits: Annual audits or reviews of raw materials, packaging materials, and general spare parts and hardware

Responsible Procurement

• Sourcing from FSC-certified suppliers
• Supplier Code of Conduct and Accountability Statement
• Supplier Sustainability Management Self-Assessment Table

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons, floods

Transition Risks

• GHG regulations and carbon tax
• Regulations for major electricity users

Opportunities

• Use of biomass fuel
• Development of low-carbon/green products
• Increased investments in renewable energy

Reporting Standards

Frameworks Used: GRI Standards: Core Options, AA1000 AccountAbility Principles (2018)

Certifications: ISO 9001, ISO 22000, ISO 22716, FSC COC, HACCP, GMP

Third-party Assurance: British Standards Institution (BSI), Type 1 moderate-level assurance

UN Sustainable Development Goals

• SDG 3: Good Health and Well-being
• SDG 6: Clean Water and Sanitation
• SDG 7: Affordable and Clean Energy
• SDG 12: Responsible Consumption and Production
• SDG 13: Climate Action
• SDG 15: Life on Land

See report for details on how initiatives contribute to these goals

Sustainable Products & Innovation

• Environmentally friendly green products (Orange House series)
• Plant-based biodegradable toilet paper packets
• Environmentally friendly packaging

Awards & Recognition

• 2021 Taiwan Circular Economy Enterprise Award
• 2021 Green Procurement Enterprise Award
• Private Enterprise and Organization Green Procurement Award
• 6th Taiwan Mittelstand Award
• Best Companies to Work for in Asia 2021
• Two-Star Award for Outstanding Enterprise in the Recycle Category

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• GHG emissions intensity declined by 6.8% in 2021 and 3.3% in 2022
• Total GHG emissions declined from 115,646 tCO2-e in 2021 to 107,784 tCO2-e in 2022
• Taiwan factories achieved 100% zero-hazardous waste output in 2022
• 83.1% of pulp consumption was FSC-certified in 2022

Social Achievements

• Received “Best Companies to Work for in Asia 2022” from HR Asia for the 2nd consecutive year
• Received “We Care- HR Asia Most Caring Companies Award”
• Yang Mei factory received the Silver Award for Outstanding Enterprise in the Recycle Category
• Chung Shui factory received the 4th National Enterprise Environmental Protection Award
• Launched Mayflower Extreme Premium toilet paper and Delight pull-up kitchen towel
• Upgraded Orange House antibacterial and mite-removing laundry detergent
• Total training hours for employees in 2022 totaled 32,721 hours (average 25 hours per employee)

Governance Achievements

• Completed first sustainability report ahead of TWSE requirements and obtained 3rd-party certification in 2022
• Established Sustainability Office in January 2022
• Established the “Board of Directors Performance Evaluation Guidelines”
• Established the “Regulations on the Remuneration of Directors, Members of Functional Committees, and Managerial Officers”
• Established the Ethical Corporate Management Operating Procedures and Code of Conduct

Climate Goals & Targets

Environmental Challenges

• Global inflation
• Ukraine-Russia conflict affecting commodities and currencies
• Supply chain disruptions
• Rising costs
• Geopolitical risks
• Uncertain global economic growth

Mitigation Strategies

• Product innovation to cope with rising costs and market changes
• Optimizing product mix and controlling costs
• Close collaboration with channel partners
• Actively adopting alternative fuels, solar energy, recycled water, and other renewable energy sources
• Investing in new paper machines and processing equipment
• Forming a cross-functional Innovation Team

Supply Chain Management

Supplier Audits: Annual audits or reviews of raw materials, packaging materials, and general spare parts and hardware

Responsible Procurement

• Sourcing materials from suppliers in Taiwan as well as forest-friendly pulp suppliers
• Requiring suppliers to observe relevant regulations on environmental protection, occupational safety and hygiene, or labor and human rights

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, TCFD

Certifications: ISO 14001, ISO 50001, ISO 45001, FSC

Third-party Assurance: Third-party certification institution (AA1000 Assurance Standard v3)

Sustainable Products & Innovation

• Mayflower Extreme Premium toilet paper
• Delight pull-up kitchen towel
• Toilet paper packaging made of corn starch

Awards & Recognition

• Best Companies to Work for in Asia 2022
• We Care- HR Asia Most Caring Companies Award
• Silver Award for Outstanding Enterprise in the Recycle Category
• 4th National Enterprise Environmental Protection Award