Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Labor Relations
• Corporate Governance
• Corporate Social Responsibility
• Ethical Corporate Management

Environmental Achievements

• Received ISO14001:2015 revisited edition of certification in 2017
• Successfully obtained the “Greenhouse Gases Emissions Verification Opinion Statement” in January 2011
• Passed the PAS2050 Carbon Footprint Verification for three products on November 15, 2013
• Developed waste management measures to reduce raw materials used
• Developed green products and green energy industrial products
• Pledged to save 1% of annual electricity based on the total electricity consumption of 2014

Social Achievements

• Offers a variety of employee benefits, including allowances for childbirth, marriage, and funerals, travel subsidies, group insurance, birthday and festival bonuses, senior employee reward, regular health examination, year-end bonus, employee cafeteria, shuttle bus service, dormitory, and library access.
• Established the “Workplace Protection and Complaint Operating Procedures.”
• Lu-Chu Plant, Da-Fa Plant, and Ping-Nan Plant were awarded the Healthy Workplace Certification - Health Promotion Badge in 2016.
• Ping-Nan Plant was awarded the third place in the competition of “Corporate’s Internal Promotion of Awareness towards Addictive Substance” in 2017.
• Regularly holds a “labor meeting and high-level manager symposium” to enhance communication between employers and employees.

Governance Achievements

• Established the “Procedural Rules for Board of Directors Meetings of Eternal Materials Co., Ltd.”
• Formed a Remuneration Committee (three members) on October 21, 2011.
• Established an Audit Committee (comprised of all independent directors) in 2016.
• Established the “Ethical Corporate Management Principles”,
• Established the “Corporate Governance Regulations”,
• Established the “Management Rules for Internal Material Information Handling and Insider Trading Prevention”

Climate Goals & Targets

Environmental Challenges

• Fluctuations in prices of raw materials
• Tariff barriers in international trade
• Global economic slowdown
• Global economic downturn
• China-US trade war
• Brexit
• High cost of petrochemical materials
• Stringent environmental regulations
• Oversupply in the global market for UV light curing coatings

Mitigation Strategies

• Developed alternative sourcing strategies for raw materials
• Established a new plant in Malaysia to bring flexibility to the global supply chain
• Plans to establish “smart manufacturing” with a new ERP system
• Adjusting the operating structure with pragmatic and prudent principles
• Committed to the development of business diversification
• Redouble efforts in research, development and commercialization of key materials
• Increasing the proportion of sales of high value-added products, reducing production costs, and developing new industries and applications

Supply Chain Management

Responsible Procurement

• Assessing suppliers' past records in environmental and social impacts

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS, IAS, IFRIC, SIC

Certifications: ISO 14001, ISO 14001:2015, OHSAS 18001, CNS15506:2011

Third-party Assurance: Deloitte Taiwan

Sustainable Products & Innovation

• Water-borne light-curing plastic cover
• Bridging agent of high light anode electrophoretic coating
• Water-borne passivation resin for galvanized steel plates
• Visible-light photocatalyst antibacterial coating
• Lightweight UP structural adhesive for FRP industry
• Methylphenyl polyoxyalkylene microspheres for LED light
• Accurate detection technology of fluorine content in water-borne fluorocarbon coating
• Non-ionic self-extinguishing resin and coating
• Eco-friendly high solids fluoroester resin
• High performance acrylate PSA glue for electronics
• Gel for cosmetic raw materials

Awards & Recognition

• Healthy Workplace Certification - Health Promotion Badge (Lu-Chu Plant, Da-Fa Plant, and Ping-Nan Plant in 2016)
• Third place in the competition of “Corporate’s Internal Promotion of Awareness towards Addictive Substance” (Ping-Nan Plant in 2017)

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Environmental Protection
• Social Welfare

Environmental Achievements

• Reduced total GHG emissions by approximately 2.2% from 2018 and 3.2% from 2017 in Taiwan.
• Reduced SOx, NOx, and TSP emissions in China by 29.50%, 24.46%, and 22.47% respectively compared to the previous year.
• Reduced SS and COD emissions in Taiwan by 5.03% and 4.35% respectively compared to the previous year.
• Developed various green products including green electronic packaging materials, polyimide materials, environmentally-friendly coating and synthetic resin, and cleaning-free CTP photosensitive adhesive.

Social Achievements

• Employee turnover rate under 5% for the parent company and under 15% for subsidiaries in mainland China.
• Achieved a 100% reinstatement rate for male employees and 89% for female employees after parental leave.
• Organized various community and social activities, including the “Eternal Charity” program and “One-Day Volunteers” activities.
• Established the Eternal Arts Center.

Governance Achievements

• Appointed a Chief Corporate Governance Officer.
• Strengthened information disclosure for investors.
• Established an Audit Committee and a Remuneration Committee.
• Implemented ethical management policies and a whistleblowing system.

Climate Goals & Targets

Environmental Challenges

• Exchange rate fluctuations impacting profit.
• Increasingly strict waste regulations and shortage of waste treatment resources.
• Stringent air pollution controls in mainland China.
• High turnover rate in mainland China and other regions.

Mitigation Strategies

• Implemented hedging strategies for foreign exchange risks.
• Implemented waste reduction measures, reuse in recycling processes, and purchased additional waste concentration and reduction equipment.
• Invested in air pollution prevention equipment and implemented stringent monitoring and control measures.
• Implemented various incentive measures for employee retention, including salary adjustments, bonuses, and benefits.

Supply Chain Management

Supplier Audits: 25 onsite audits in 2019

Responsible Procurement

• Tiered procurement based on volume and importance
• Global sourcing of bulk raw materials
• Prioritizing local suppliers
• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards 2016

Certifications: ISO 9001, ISO 14001, ISO 14064, ISO 45001

Third-party Assurance: SGS Taiwan Ltd.

Sustainable Products & Innovation

• Green electronic packaging materials
• Polyimide materials
• Environmentally-friendly coating and synthetic resin
• Cleaning-free CTP photosensitive adhesive
• Biomedical materials
• Energy storage materials
• High-frequency materials

Awards & Recognition

• Constituent stock of the “FTSE4Good TIP Taiwan ESG Index” (2019)
• Excellence award for Preventive Education for Addictive Substances in the Workplace and Performance Assessment Plan (Ping-Nan Plant, 2019)
• Health Management Award for a healthy workplace (Ping-Nan Plant, 2019)

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Social Welfare
• Corporate Governance

Environmental Achievements

• Lu-Chu Plant passed the BS8001 audit at the “Optimizing” level by the British Standards Institution (BSI), the first company in the chemical industry in Taiwan to achieve this.
• Reduced electricity consumption by 373,000 kWh, heat reduction by 5,148,792 MJ, water reduction by 29 million liters, and CO2 emissions by 1,665 tons in 2020 through various energy-saving and carbon-reducing projects.
• Ping-Nan Plant obtained ISO 50001 energy management system certification.

Social Achievements

• Upgraded "Eternal Charity" to version 3.0, expanding stakeholder involvement and incorporating indigenous cultural elements into community art projects.
• Employee turnover rate under 5% for the parent company and under 15% for subsidiaries in mainland China.

Governance Achievements

• Appointed a Chief Corporate Governance Officer.
• Established an effective corporate governance structure and system in accordance with the Company Act, Securities and Exchange Act, and relevant laws and regulations.
• No corruption cases occurred in the past three years.

Climate Goals & Targets

Environmental Challenges

• Exchange rate fluctuations impacting profitability.
• Climate change risks (extreme weather, water shortages, power rationing).
• Supply chain disruptions (not explicitly stated, but implied by the focus on supply chain management).

Mitigation Strategies

• Close contact with foreign exchange departments of financial institutions, forward foreign exchange transactions, hedging strategies, and asset management to mitigate exchange rate risks.
• Procedures for responding to natural disasters, increased insurance, equipment upgrades, and investment in renewable energy to address climate change risks.
• Global sourcing of raw materials, tiered procurement, and development of local suppliers to improve supply chain resilience.

Supply Chain Management

Supplier Audits: 7 in 2020 (Taiwan); overseas audits suspended due to COVID-19

Responsible Procurement

• Global sourcing
• Tiered procurement
• Prioritization of local suppliers
• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters
• Extreme cold weather
• Heavy rain and floods
• Water shortages
• Power rationing

Transition Risks

• Regulatory changes

Opportunities

• Development of energy-efficient products
• Investment in renewable energy

Reporting Standards

Frameworks Used: GRI Standards 2018

Certifications: ISO 14001, ISO 45001 (most plants), ISO 50001 (Ping-Nan Plant), BS8001 (Lu-Chu Plant)

Third-party Assurance: SGS Taiwan Ltd.

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Aqueous resins
• Photocurable curing materials
• High solid content/powder resins
• Halogen-free CEM-1 laminate
• Biodegradable products
• Resins for wind turbine generators and blades
• Resins for solar panels
• Recycled alcohol products
• Biomass raw material products
• Green electronic packaging materials

Awards & Recognition

• FTSE4Good TIP Taiwan ESG Index constituent stock (2020)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced electricity consumption by 3,682,800 MJ/year (1,023,713 kWh), thermal energy by 87,491,036 MJ/year, and carbon dioxide emissions by 6,607.4 tons through various energy-saving projects (total investment cost of NT$74.97 million).
• 38.2% reduction in total greenhouse gas emissions (77,245 tCO2e) compared to 2005 in Taiwan's three plants.
• Installation of a solar power generation system at the Lu-Chu Plant (estimated to reduce greenhouse gas emissions by 778 tCO2e per year).

Social Achievements

• Parent company's employee turnover rate of 4.9% and subsidiary turnover rate in China of 12.2%
• Implemented various employee benefits including childbirth, marriage, funeral allowances, travel subsidies, group insurance, and more.
• Average training hours per employee of 26.6 hours.

Governance Achievements

• Established a Corporate Governance and Sustainability Committee.
• Implemented effective corporate governance structure and system in accordance with the Company Act, Securities and Exchange Act, and relevant laws and regulations.
• No significant fines or non-monetary sanctions for material violations in the social and economic fields.

Climate Goals & Targets

Environmental Challenges

• Climate change risks including stricter requirements for air pollution, greenhouse gas emissions pricing, renewable energy obligations, and enhanced reporting.
• Transition risks such as energy efficiency transformation, renewable energy stability, changes in client demands, and rising raw material costs.
• Physical risks like extreme weather events, water scarcity, and unstable power supply.
• Supply chain disruptions.

Mitigation Strategies

• Investment in air pollution control equipment and low-carbon technologies.
• Gradual replacement of oil-based coatings with water-based coatings.
• Development of low-carbon products and eco-friendly raw materials.
• Active work with new suppliers, increased supply sources, and raw material inventory control.
• Formulated countermeasures for water shortages, heavy rains, floods, power rationing, natural disasters, and extreme cold weather.

Supply Chain Management

Supplier Audits: 6 on-site audits in 2021; 114 new suppliers evaluated, 104 qualified (91% pass rate).

Responsible Procurement

• Global sourcing of bulk raw materials.
• Three procurement centers in mainland China.
• Prioritization of local suppliers.
• Supplier Code of Conduct requiring compliance with social and environmental regulations.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (flooding, typhoons, droughts)
• Water scarcity
• Unstable power supply
• Extremely cold weather

Transition Risks

• Stricter requirements for air pollution and total amount control
• Greenhouse gas emissions pricing
• Control of percentage of renewable energy for energy-heavy users
• Enhanced obligation to report and disclose energy and resource consumption
• Energy efficiency and energy structure transformation
• Gradual replacement of oil-based coatings with water-based coatings
• Renewable energy stability
• Replacement of existing raw materials with low-carbon raw materials
• Changes in client and market demands
• Rising raw material costs
• Orders impacted by poor ESG performance ratings
• Stigmatized industry

Opportunities

• Development of energy-efficient products
• Energy management systems, big data, and AI applications
• Adoption of effluent recycling and waste heat power generation technologies
• Reduction of use of Category 1 fossil fuels
• Self-generation and self-use of solar power
• Seeking offset benefits from alternative fuels
• Creation of low-carbon footprint products by improving processes and technology
• R&D
• Increased green application distribution channels
• Carbon footprint data management platforms
• Increased installed capacity of renewable energy and reclaimed water treatment equipment

Reporting Standards

Frameworks Used: GRI Standards: Core Options

Certifications: ISO 14001, ISO 45001, ISO 50001

Sustainable Products & Innovation

• Waterborne resins
• Photo-curable materials
• High solid content/powder resin/oil-to-water system
• Halogen-free CEM-1 laminate
• Bio-based raw material products
• Resin for nacelle covers of wind power
• Resin for wind turbine blades
• Resin for solar panels
• Green electronic packaging materials
• Energy storage materials
• Green energy materials
• Biomass materials

Awards & Recognition

• Excellent Fire Safety Management Site Award
• Excellent Fire Safety Manager Award
• Gold award in Greenhouse Gas Reduction Evaluation

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Successfully implemented the ISO 50001:2018 Energy Management System in Taiwan.
• Reassessed greenhouse gas emissions in line with ISO 14064-1:2018.
• Initiated renewable energy investments and assessments, including large-scale solar energy installation.
• Power reduction rate of 4.92% in 2023.
• Heat reduction rate of 6.22% in 2023.
• Increased renewable energy installations from 15kW in 2021 to 3077kW in 2023.
• Increased use of renewable energy from 17,305 kWh in 2021 to 3,323,088 kWh in 2023.
• Acquired 955 tCO2e in carbon offset credits in 2023.

Social Achievements

• Not disclosed

Governance Achievements

• Established the “Corporate Governance and Sustainable Development Committee” in 2021.
• Established a “Net Zero Emission Task Force”.

Climate Goals & Targets

Environmental Challenges

• Increased frequency and intensity of extreme weather events (flooding, droughts).
• Regulatory changes (carbon tax, CBAM, EU Green Deal).
• Upstream supplier transformation risks.
• Increased air conditioning costs due to high temperatures.
• Water consumption fees.
• Potential flooding of Mainland China plants due to sea level rise.
• Supply chain disruptions due to natural disasters.

Mitigation Strategies

• Developed emergency plans for natural disasters.
• Implemented flood prevention measures.
• Incorporated energy management systems.
• Replaced process and utility equipment.
• Increased proportion of self-generated renewable energy.
• Implemented an internal carbon pricing and carbon trading mechanism.
• Acquired relevant disaster insurance.
• Maintained real-time flexible scheduling of production areas.
• Implemented control measures according to water condition signals.
• Used water resource recovery systems to increase the rate of water recycling.
• Included potential impacts of sea level rise as a necessary condition for site selection evaluation.
• Undertaken risk assessments and implemented measures to improve energy efficiency.
• Adopted carbon layout strategies.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather (typhoons, floods, droughts, heavy rains)
• Sea level rise
• High temperatures

Transition Risks

• Carbon tax
• CBAM carbon tariffs
• Upstream supplier transformation
• Market preference changes
• Changes in rainfall patterns

Opportunities

• Reducing carbon tax costs
• Improving reputation
• Enhancing energy efficiency
• Enhancing resilience
• Mitigating supplier risks
• Water consumption fee reduction incentives
• Reducing procurement costs
• Revenue improvement from green products
• Increase in market share

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 50001:2018, ISO 14064-1:2018

Third-party Assurance: BV (for one Taiwan plant)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Green products
• Green energy/energy saving application materials

Awards & Recognition

• Not disclosed