Climate Change Data

Sheng Yu Steel Co., Ltd.

Climate Impact & Sustainability Data (2021, 2023)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:87267.55 tonnes CO2e (Scope 1: 30830.95, Scope 2: 56436.60, Scope 3: data not available)
Scope 1 Emissions:30,830.95 tCO2e
Scope 2 Emissions:56,436.60 tCO2e
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Data not explicitly provided, but a solar power system was installed.
Total Energy Consumption:100,666,510 kWh electricity + 14,337,846 m³ natural gas + 1.396 KL LPG + 19,045,332 kg diesel fuel + 80,200 liters gasoline + 15,420 liters
Water Consumption:485,498 tonnes
Waste Generated:185.76 tonnes waste solvents (incineration) + 1478.63 tonnes inorganic sludge (burial) + 4.59 tonnes sludge containing chromium (solidification) + 285.82 tonnes waste oil sludge (burning, heat treatment) + 34.58 tonnes refractory materials (physical treatment) + 75.88 tonnes waste wood (reuse) + 98.18 tonnes recyclable waste
Carbon Intensity:65.6 kg CO2e/mt of product in 2021

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Reduced GHG emissions by 1,119.43 tonnes of CO2e through six energy-saving projects.
  • Achieved a 98.77% process water recovery rate.
  • Built a solar power system with a total capacity of 3,266,043 kWh from 2015-2021.

Social Achievements

  • Launched a health promotion campaign for weight loss.
  • Established a shareholding trust incentive scheme for employees.
  • Provided various employee benefits including shuttle bus service, flexible leave system, and subsidies.

Governance Achievements

  • Established the "ESG Sustainable Development Executive Committee" to integrate resources and promote sustainable management.
  • Implemented a rigorous selection process for waste clearance and disposal contractors with 100% audit pass rate.
  • Conducted annual supplier management audits with no deficiencies identified.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Achieve 1,500kWp of solar power installed capacity by 2022.
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Competition in the raw materials market due to Taiwan's net-zero carbon emissions goal.
  • Tariff barriers, US-China trade war, COVID-19 pandemic, and inability to sign trade agreements due to the Chinese factor impacting export sales.
  • Potential regulatory and physical risks associated with climate change (carbon tax, fuel/energy taxes, product emission standards, extreme rainfall and droughts).
Mitigation Strategies
  • Formulated and implemented energy saving and carbon reduction plans.
  • Actively planned and implemented water recycling.
  • Continuously paid attention to international climate change agreements and government policies and regulations, and actively implemented best feasible technology for air pollution prevention.

Supply Chain Management

Supplier Audits: Annual audits conducted with no deficiencies identified in 2021.

Responsible Procurement
  • Compliance with Sheng Yu's CSR policy
  • Supplier audits for HSF green products
  • Sourcing conflict-free raw materials

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme rainfall and droughts
Transition Risks
  • Carbon tax
  • Fuel/energy taxes
  • Product emission standards
  • Tightening of legislation and pollutant emission standards
  • Reduction/discontinuation of production capacity
Opportunities
  • Development and application of green energy steel

Reporting Standards

Frameworks Used: GRI Standards (Core option), AA1000 principle of accountability, Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies, Code of Practice for the Preparation and Reporting of Sustainability Reports by Listed Companies, OECD guidelines, UN Sustainable Development Goals (SDGs)

Certifications: ISO 50001:2018 (Energy Management Systems), ISO 14064-1:2018 (Greenhouse Gas Inventory Standard), IECQ QC 080000:2017 (Hazardous Substance Process Management System), ISO 14001:2015 (Environmental Management Systems), ISO 45001:2018 (Occupational Safety and Health Management System), TTQS Gold Award (Talent Quality Management System)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Goal 7 (Affordable and clean energy)
  • Goal 13 (Climate action)

Initiatives such as solar power system installation, energy saving projects, and water recycling contribute to these goals.

Sustainable Products & Innovation

  • Matte black trash can shell
  • PPSUS for integrated solar substrate
  • Printed rockwool composite panel
  • Sheng Yu stainless steel PVDF coated steel sheets
  • Sheng Yu high plated 55% Al-Zn AZ300 for solar power system bracket

Awards & Recognition

  • Seven consecutive TTQS Gold Awards
  • "Silver Tower Five Star Award" in the Continuous Improvement Competition
  • "Excellent Award" in the TPM Improvement Competition

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:74,599 tCO2e/year (Scope 1 & 2)
Scope 1 Emissions:27,121.56 tCO2e/year
Scope 2 Emissions:43,127.08 tCO2e/year
Scope 3 Emissions:896,483.03 tCO2e/year
Renewable Energy Share:0.76%
Water Consumption:434,255 m3/year
Waste Generated:3,993 tons/year
Carbon Intensity:6.36 metric tons CO2e per million NTD (2023)

ESG Focus Areas

  • Ethical Management
  • Sustainable Environment
  • Social Care
  • Governance

Environmental Achievements

  • Reduced carbon emissions by 1,362 tons of CO2e annually
  • Saved 52,080 cubic meters of water per year
  • Ensured that 61 types and 118 items of materials used in products comply with RoHS and REACH regulations

Social Achievements

  • Continuous contribution to public welfare (beautification project for Zhongshan Road, sponsorship of activities)
  • Average of 27.38 training hours per employee in 2023

Governance Achievements

  • Established the Sustainable Development Committee
  • Improved corporate governance evaluation scores year over year
  • Increased the number of independent directors

Climate Goals & Targets

Long-term Goals:
  • Achieve net-zero emissions by 2050
Medium-term Goals:
  • Reduce GHG emissions by 7% in 2025 compared to 2018
  • Reduce water consumption per unit product by 7% compared to 2018
  • Reduce waste generation per unit of product by 20% compared to 2018
Short-term Goals:
  • Reduce GHG emissions by 3% in 2023 compared to 2018
  • Reduce water consumption per unit product by 5% compared to 2021
  • Reduce waste generation per unit of product by 18% compared to 2018

Environmental Challenges

  • Continuous increase in greenhouse gas emissions
  • Ineffective energy conservation
  • Continuous increase in wastewater discharge
  • Increase in waste generation/reduction in recycling rates
  • Water and power shortages
  • Typhoons and floods
  • Violations of environmental regulations
  • Workplace injuries
  • Overwork
  • High turnover rate
  • Ethical & integrity risks
  • Insufficient transparency in information disclosure
  • Decline in market competitiveness
  • Occurrence of cybersecurity incidents
  • Product liability
  • Supply chain disruptions
Mitigation Strategies
  • Established an Energy Resource Management Committee
  • Implemented ISO50001 Energy Management System and ISO14064-1 greenhouse gas inventory certifications
  • Introduced a carbon management platform
  • Production units manage their own water consumption
  • Replaced and upgraded old pipelines
  • Established Waste Reduction Management Unit
  • Added sludge dryers and updated process equipment
  • Published daily water usage of production units
  • Upgraded water recycling equipment
  • Implemented typhoon preparedness measures
  • Conducted monthly regulatory audits
  • Implemented TOSHMS & ISO 45001 Information Security Management System
  • Implemented near-miss reporting system
  • Established an “Ethical Management Policy”
  • Implemented various policies to prevent unethical behavior
  • Host quarterly investor conferences
  • Developed strategic partnerships and signed long-term supply contracts
  • Increased buffer inventory and adopted multi-source procurement

Supply Chain Management

Supplier Audits: 0/year

Responsible Procurement
  • Compliance with RoHS and REACH regulations

Climate-Related Risks & Opportunities

Physical Risks
  • Typhoons and floods
  • Changes in rainfall patterns
  • Rising average temperatures
  • Rising sea levels
Transition Risks
  • Increase in greenhouse gas emission pricing
  • Strengthening reporting obligations for emissions
  • Regulatory requirements on existing products and services
  • Litigation risk
  • Substitution of existing products and services with low-carbon alternatives
  • Failure to invest in new technologies
  • Costs of transitioning to low-carbon technologies
  • Changes in customer behavior
  • Market uncertainty
  • Rising raw material costs
  • Shift in consumer preferences—industry stigmatization
  • Increasing stakeholder concerns and negative feedback
Opportunities
  • Adoption of more efficient transportation methods
  • Utilization of more efficient production and distribution processes
  • Recycling and reuse
  • Switching to more efficient buildings
  • Reduce water use and consumption
  • Use of low-carbon energy
  • Adoption of incentive policies for using new technologies
  • Participation in the carbon trading market
  • Shift to decentralized energy systems
  • Development and/or increase of low-carbon products and services
  • Development of climate adaptation and insurance risk solutions
  • Research and innovation for developing new products and services
  • Diversification of business activities
  • Shifts in consumer preferences
  • Entry into new markets
  • Leveraging public sector incentive programs
  • Acquisition of new insurable assets and regions
  • Participation in renewable energy projects
  • Adoption of energy-saving measures
  • Energy substitution/diversification

Reporting Standards

Frameworks Used: GRI Standards 2021, TCFD, SASB

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, ISO 50001:2018, IECQ QC 080000:2017, ISO 14064-1:2018

Third-party Assurance: GREAT Certification

UN Sustainable Development Goals

  • Goal 1
  • Goal 3
  • Goal 4
  • Goal 5
  • Goal 8
  • Goal 11
  • Goal 13

Initiatives contribute to these goals through various programs and policies detailed in the report.

Sustainable Products & Innovation

  • High-coating 55% aluminum-zinc alloy (AZ300) for solar panel supports

Awards & Recognition

  • 2020 Honorary Member Award (Kaohsiung Chamber of Industry)
  • 2021 Outstanding Member Award (Kaohsiung Chamber of Industry)
  • 2022 Outstanding Member Award (Kaohsiung Chamber of Industry)
  • 2023 Outstanding Member Award (Kaohsiung Chamber of Industry)
  • 2023 Outstanding Japanese Business in Kaohsiung Award