Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Product Responsibility
• Environmental Protection
• Friendly Work Environment
• Social Contribution

Environmental Achievements

• Generated 36,516 kWh of power with solar power, resulting in 234,396 NTD of direct economic benefits and 19,317 kg CO2e of indirect benefits in greenhouse gas emissions reduction.
• Achieved an 83% average annual water recycling rate and 80% water recycling during the manufacturing process.

Social Achievements

• Employed 8 disabled workers (more than legally required).
• Hosted charity theater events for disadvantaged children.
• Organized a blood drive resulting in over 15,000 ml of blood donated.
• Maintained over 90% return rate for employees on childcare leave.

Governance Achievements

• Ranked top 5% in TWSE's Corporate Governance Evaluation for two consecutive years.
• Received three Authorized Economic Operator (AEO) certifications from the Customs Administration of the Ministry of Finance.

Climate Goals & Targets

Environmental Challenges

• Continued price pressure in the generics pharmaceutical market and increasingly concentrated markets.
• Increased waste solvents due to increased production capacity.

Mitigation Strategies

• Consolidated position as a leading provider of cancer drugs and used a flexible marketing strategy.
• Invested 10 million NTD to add three inlets to air strippers to process more waste solvents.

Supply Chain Management

Supplier Audits: Annual audits of suppliers and contracted service providers.

Responsible Procurement

• Procedures for Supplier Review applied to audits of APIs, intermediaries, and suppliers and contracted providers of APIs.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 guidelines (Core level)

Third-party Assurance: Limited assurance report by an accountant in accordance with the principles set out by the Accounting Research and Development Foundation

Awards & Recognition

• Authorized Economic Operator (AEO) certification
• Unit of excellence for the promotion of healthy workplace
• 2016 Taiwan API Manufacturing Company of the Year
• Top 5% in TWSE's Corporate Governance Evaluation

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Product Responsibility
• Environmental Protection
• Friendly Work Environment
• Social Responsibility

Environmental Achievements

• Increased waste stripper capacity to 1,148 tons
• Generated 36,780 kWh of electricity through solar panels, resulting in 236,091 NTD of direct economic benefit and 19,457 kgCO2e in reduced greenhouse gas emissions.

Social Achievements

• Number of disabled workers hired exceeded regulatory requirements by 50%
• Hosted the “Happy Food Welfare Activity”, collecting 200,000 NTD for food parcels for impoverished children.
• Hosted ScinoPharm art seminars for the eighth consecutive year.
• Hosted a summer camp for disadvantaged children.

Governance Achievements

• Received Common Wealth Magazine's Citizenship Award
• Designated an Excellent Exports/Imports Company by the Bureau of Foreign Trade, MOEA
• Ranked second place at IR Magazine Awards-Greater China in Health Care Sector

Climate Goals & Targets

Environmental Challenges

• Low pricing and mergers prevalent in the global pharmaceutical industry.
• NTD rose aggressively against USD in 2017, impacting export-oriented revenues and profits.
• Amendments to the Pharmaceutical Affairs Act included the "Patent Linkage" system.

Mitigation Strategies

• Optimized manufacturing processes, managed costs, and enhanced management efficiency.
• Expanded product portfolio, building upon generic drug product lines.
• Developed strategies to mitigate the impact of the "Patent Linkage" system, focusing on overseas markets.

Supply Chain Management

Responsible Procurement

• Procedures for Supplier Review
• Supplier audits
• Verification forms for contractors

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 guidelines (Core level), AA1000 Stakeholder Engagement Standard (SES)

Third-party Assurance: PricewaterhouseCoopers (PwC) - Limited assurance

Awards & Recognition

• Common Wealth Magazine's Citizenship Award
• Excellent Exports/Imports Company (MOEA)
• IR Magazine Awards-Greater China in Health Care Sector (2nd place)

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Health, Safety
• Social Responsibility
• Corporate Governance
• Product Responsibility

Environmental Achievements

• Invested NT$ 5,985,000 in installing solar panels, generating 38,684 kWh and reducing greenhouse gas emissions by 19,690.15kg CO2e in 2020. Estimated annual power generation of 185,000 kWh and reduction of 94,285kg CO2e.
• Reduced waste liquid with high water content treated by third parties by 66%.

Social Achievements

• Employed 9 people with disabilities, exceeding legal requirements.
• Organized various employee activities (e.g., ScinoPharm Art Forum, employee clubs), and provided benefits exceeding legal requirements.
• Maintained harmonious labor-management relations with no losses due to disputes.

Governance Achievements

• Established and implemented ethical management principles and guidelines.
• Held six board meetings in 2020 with a 97.78% average attendance rate.
• Maintained compliance with relevant laws and regulations.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting global markets and operations.
• Potential risks related to market, legal, product quality, financial, liquidity, credit, procurement, safety, health, and environmental issues, and climate change.

Mitigation Strategies

• Strategic planning and stable operations to achieve revenue and profit targets.
• Implemented flexible work arrangements (flexible work time, remote work, online meetings).
• Strengthened internal control of production schedules and flexible sales and transportation planning.
• Comprehensive risk assessment and management strategies across various departments.
• Implemented various energy-saving and waste reduction measures.

Supply Chain Management

Supplier Audits: 5 supplier audits and 1 waste disposal provider audit in 2020.

Responsible Procurement

• Supplier Audit Procedures
• Management of Consultants and Contractors operating procedures
• Formal contracts specifying rights and obligations, and requirements for material and service quality.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events impacting raw material prices and production.

Transition Risks

• Increased greenhouse gas emission costs; impact of energy transitions on electricity costs.

Opportunities

• Development of energy-efficient products and processes; carbon reduction initiatives.

Reporting Standards

Frameworks Used: GRI Standards

Third-party Assurance: PricewaterhouseCoopers (PwC) Taiwan (limited assurance)

UN Sustainable Development Goals

• Goal 3: Ensure healthy lives and promote well-being for all at all ages
• Goal 4: Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all
• Goal 5: Achieve gender equality and empower all women and girls
• Goal 6: Ensure availability and sustainable management of water and sanitation for all
• Goal 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
• Goal 10: Reduce inequality within and among countries
• Goal 12: Ensure sustainable consumption and production patterns
• Goal 13: Take urgent action to combat climate change and its impacts

Various initiatives aligned with SDGs as detailed in the report.

Awards & Recognition

• Badge of Accredited Healthy Workplace from the Health Promotion Administration of the Ministry of Health and Welfare.

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Product Accountability
• Friendly Workplace
• Social Responsibility
• Corporate Governance

Environmental Achievements

• Reduced water consumption and GHG emissions by 1–2%, and waste production by 3–5% compared to 2018.
• Generated 172,218 kWh of electricity from solar panels and a power generator.

Social Achievements

• Implemented gender equality in the workplace with female employees in managerial roles accounting for 52.6%.
• Won the Copper Award at the 15th Arts and Business Awards.
• Hired nine full-time employees with physical and mental disabilities, exceeding statutory requirements.

Governance Achievements

• Three female directors on the Board of Directors (20% of the board).
• Received A++ rating in the 11th TWSE Information Disclosure Review for Listed Companies.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the COVID-19 pandemic.
• Potential future expenses from carbon emissions and the implementation of the Carbon Border Adjustment Mechanism (CBAM).

Mitigation Strategies

• Leveraged versatility and flexibility to reduce the impact of global market turmoil.
• Developed alternative sourcing strategies for raw materials.
• Endeavored to reduce energy resource consumption, increase raw material and solvent recovery, and optimize processes to achieve energy conservation and carbon reduction.

Supply Chain Management

Supplier Audits: 9 suppliers audited in 2021

Responsible Procurement

• Supplier Audit Procedures and Operating Procedures for the Management of Consultants and Contractors

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events impacting raw material prices and supply.

Transition Risks

• Increased cost of greenhouse gas emissions; unstable water and electricity supply.

Opportunities

• Development of energy-efficient products and carbon reduction devices.

Reporting Standards

Frameworks Used: GRI Standards (Core option)

Third-party Assurance: PricewaterhouseCoopers (PwC) Taiwan (Limited assurance)

UN Sustainable Development Goals

• Goal 1
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 8
• Goal 10
• Goal 12
• Goal 13

Initiatives contributing to poverty reduction, health and well-being, education, gender equality, water management, economic growth, inequality reduction, sustainable consumption and production, and climate action.

Sustainable Products & Innovation

• Development of peptide APIs and CDMO products; proteinoid microsphere platform.

Awards & Recognition

• Copper Award at the 15th Arts and Business Awards

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Product Accountability
• Environmental Protection
• Friendly Workplace
• Social Responsibility

Environmental Achievements

• Installed solar panels, generating 231,856 kWh of electricity, cutting GHG emissions by 114,768 kg CO2e
• Achieved more than 1% average power saving rate for 8 consecutive years

Social Achievements

• Female employees in managerial roles account for 80%
• Men-to-women pay ratio was near 1:1
• 100% retention rate after unpaid parental leave

Governance Achievements

• Passed two U.S. FDA pre-approval on-site inspections with zero 483 observations
• Established a Sustainable Development Committee

Climate Goals & Targets

Environmental Challenges

• Rising raw material costs
• Changes in the external environment
• Competition with other manufacturers
• Climate change risks (market changes, government regulations, physical risks)

Mitigation Strategies

• Implementing company’s development blueprint and focusing on three core business activities
• Conducting GHG emissions inventory and collaborating with ESCO for carbon reduction measures
• Implementing water-saving management, developing alternative sourcing strategies
• Purchasing insurance for risk transfer
• Solvent recovery and reuse, process optimization, replacement of energy-consuming equipment, waste reduction

Supply Chain Management

Supplier Audits: 42 suppliers audited in 2022

Responsible Procurement

• Supplier Audit Procedures
• Operating Procedures for the Management of Consultants and Contractors

Climate-Related Risks & Opportunities

Physical Risks

• Drought, water restrictions
• Tropical wind (typhoon, flood)
• High temperature, power restrictions
• Rising sea level

Transition Risks

• Market changes
• Government levy on carbon emissions
• Renewable energy regulation
• Foreign carbon tariffs

Opportunities

• Recycling and reuse
• Use more efficient production
• Use of low carbon energy
• Participation in carbon trading market

Reporting Standards

Frameworks Used: GRI Standards, SASB Standards

Certifications: Null

Third-party Assurance: PricewaterhouseCoopers (PwC) Taiwan (Limited assurance)

UN Sustainable Development Goals

• Goal 1
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 10
• Goal 12
• Goal 13
• Goal 16

Initiatives contributing to various SDGs as detailed in the report

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Badge of Accredited Healthy Workplace

Environmental Metrics

ESG Focus Areas

• Environmental sustainability
• Social prosperity
• Corporate governance (ESG)

Environmental Achievements

• Completed annual greenhouse gas (GHG) inventory for 2022, passed ISO 14064-1 third-party verification
• Completed quantifying the carbon footprint of Irinotecan Hydrochloride in accordance with ISO 14067 standards
• Installed solar photovoltaic (PV) systems, generating approximately 218,964 kWh of electricity in 2023
• Reduced methanol and acetone use by 12.5 and 5.4 metric tons respectively compared to previous procedures

Social Achievements

• Launched a six-month internship program, with 87.5% retention rate
• More than 80% of top management are women
• Organized sustainability-themed activities with local communities, including beach cleanup (42 kg of marine debris removed)
• Engaged by Bill & Melinda Gates Foundation to optimize manufacturing processes for contraceptive products, reducing mass production costs by 60%

Governance Achievements

• Established a Sustainable Development Committee
• Increased transparency in management through quarterly business result announcements to employees
• Passed U.S. FDA inspection with zero 483 observations for injectable product and ScinoPharm Changshu

Climate Goals & Targets

Environmental Challenges

• Changes in customer demand in overseas markets
• Global supply chain changes due to geopolitical developments
• Climate change risks (extreme weather, water restrictions, carbon tariffs)
• Potential risks of patent infringement

Mitigation Strategies

• Consolidating foundation in generic APIs and completing DMF submissions for new APIs
• Implementing energy conservation and carbon reduction measures
• Collaborating with ESCO for carbon reduction assessments and measures
• Purchasing insurance for risk transfer
• Developing alternative sourcing strategies for key raw materials
• Establishing a comprehensive and rigorous control mechanism for patent activities

Supply Chain Management

Supplier Audits: 40 supplier audits and 3 waste disposal company audits in 2023

Responsible Procurement

• Supplier Audit Procedures
• Operating Procedures for the Management of Consultants and Contractors
• Material Development and Procurement Regulations

Climate-Related Risks & Opportunities

Physical Risks

• Drought, water restrictions
• Typhoons, flooding
• High temperature, power restrictions
• Rising sea level

Transition Risks

• Changes in customer behavior
• Government levy on carbon emissions
• Renewable energy regulation
• Foreign carbon tariffs

Opportunities

• Recycling and reuse
• Use more efficient production
• Use of low carbon energy
• Participation in carbon trading market

Reporting Standards

Frameworks Used: GRI Standards, SASB Standards, TCFD framework

Certifications: ISO 14064-1 (2022 GHG inventory), ISO 14067 (Irinotecan Hydrochloride carbon footprint)

Third-party Assurance: PricewaterhouseCoopers (PwC) Taiwan

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 10: Reduced Inequalities
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 17: Partnerships for the Goals

Initiatives contribute to these goals through various ESG programs and actions

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Copper Award of the 16th Arts and Business Award