Climate Change Data

光明絲織廠股份有限公司

Climate Impact & Sustainability Data (2021, 2022)

Reporting Period: 2021

Environmental Metrics

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Replaced 5 old 33H twisting machines with 3 new TMT twisting machines, reducing energy consumption.
  • Developed eco-friendly yarn that obtained the Global Recycled Standard (GRS) certification.

Social Achievements

  • Provided employee benefits including labor insurance, health insurance, group insurance, bonuses, scholarships, wedding/funeral subsidies, and regular health checkups.
  • Offered various training programs including pre-job training, on-the-job training, and management training.

Governance Achievements

  • Established a remuneration committee to evaluate and supervise the overall remuneration policy and the remuneration of managers.
  • Implemented a corporate governance system and established employee training regulations to improve efficiency and quality.

Climate Goals & Targets

Medium-term Goals:
  • Implement an ERP system.
  • Develop high value-added or special functional textile products.
Short-term Goals:
  • Expand domestic and international markets.
  • Develop differentiated high value-added polyester yarns.
  • Develop new products using 100% recycled fibers.

Environmental Challenges

  • Overcapacity and intense price competition in the textile industry due to increased production in Vietnam and Southeast Asia.
  • Fluctuations in raw material prices.
  • Increased production costs due to rising domestic minimum wages and electricity prices.
  • Trade barriers and competition from China.
Mitigation Strategies
  • Developed functional and eco-friendly yarns to increase profitability.
  • Improved machine production capacity and developed functional products to meet market trends.
  • Implemented automation to reduce labor costs.
  • Developed high value-added products to improve profitability.
  • Strengthened cooperation with large apparel suppliers.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

  • Eco-friendly yarn

Reporting Period: 2022

Environmental Metrics

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Developed and produced eco-friendly yarns with GRS certification.
  • Replaced 5 old 33H twisting machines with 3 new TMT twisting machines in 2022, aiming for energy saving.

Social Achievements

  • Provided employee benefits including labor insurance, health insurance, group insurance, bonuses, scholarships, marriage and funeral subsidies, and regular health checkups.
  • Offered various training programs including pre-job training, on-the-job training, and management training.

Governance Achievements

  • Established a board of directors with 3 independent directors and 6 non-independent directors, including 4 female directors (44%).
  • Established an audit committee and a remuneration committee.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Implement an ERP information management system.
  • Develop high value-added or special functional textile products.
Short-term Goals:
  • Expand domestic and international markets.
  • Develop differentiated high value-added polyester yarns.
  • Develop new products and services, including composite fabrics, special functional fabrics, and new synthetic fiber fabrics.

Environmental Challenges

  • Overcapacity and intense price competition in the textile industry, impacting export momentum.
  • Reduced production capacity by 14% in 2022 due to the Russo-Ukrainian war.
  • Global economic slowdown due to inflation and interest rate hikes, leading to decreased demand for consumer goods.
  • Fluctuations in raw material prices.
  • Increased production costs due to rising labor costs and electricity prices.
Mitigation Strategies
  • Implementing a vertical industry transformation plan and strategic alliances with upstream companies.
  • Developing functional and eco-friendly processed yarns.
  • Improving machine manufacturing capabilities and developing functional products.
  • Weekly adjustments to production and sales plans to focus on higher value-added products.
  • Developing high value-added products to improve product value and quality.
  • Improving production efficiency and reducing production costs.
  • Strengthening cooperation with large apparel suppliers.

Supply Chain Management

Responsible Procurement
  • Long-term relationships with reputable suppliers.

Climate-Related Risks & Opportunities

Opportunities
  • Development of energy-efficient products and eco-friendly yarns.

Sustainable Products & Innovation

  • Eco-friendly yarns