Climate Change Data

立弘生化科技股份有限公司

Climate Impact & Sustainability Data (2019, 2023)

Reporting Period: 2019

Environmental Metrics

Total Carbon Emissions:5815.87 tCO2e/year (2019)
Renewable Energy Share:28.48% (2019)
Total Energy Consumption:9548.8 MWh/year (2019)
Water Consumption:80292 m3/year (2019)
Waste Generated:957.46 tons/year (2019)
Carbon Intensity:4.02 tonCO2e/ton (2019)

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Reduced wastewater discharge by 10.4% compared to 2018
  • Increased water savings by 2,549 metric tons and a 4.3% water-saving ratio compared to 2018
  • Increased usage of recycled solvents by 4.5% compared to 2017
  • Achieved a 98.3% reduction rate of VOCs (exceeding the regulated standard of 95%)
  • Reduced greenhouse gas emissions by 163,953 kg/year through RTO waste heat recovery
  • Launched 8 new Palm Free products

Social Achievements

  • All employee salaries are at least 1.13 times higher than regulated standards
  • Average salary increases of 2-3% over the past three years
  • Achieved 1,618,225 injury-free working hours at the Taoyuan factory from July 1, 2011, to December 31, 2019
  • Significant increase in training hours for both female (94.6%) and male (39.5%) employees compared to 2018
  • Occupational health and safety personnel received an outstanding personnel award

Governance Achievements

  • Achieved NT$106.9 million net profit after tax for the fourth consecutive year
  • Invested nearly NT$25 million (around 3-4% of total revenues) in research and development
  • All suppliers are well-qualified in on-time delivery and material quality
  • Completed 30 internal audit reports with no major abnormalities found
  • Maintained on-time delivery rates of raw materials at over 90% since 2015

Climate Goals & Targets

Long-term Goals:
  • Become a leading manufacturer in the food additives and nutraceuticals industry
Medium-term Goals:
  • Promote Palm Free formulas
  • Develop Sugar Free formulas
Short-term Goals:
  • Optimize existing production technologies while reducing costs
  • Promote substitution of uncertified materials with RSPO certified materials
  • Develop new products and technologies and obtain patents

Environmental Challenges

  • Entry of new competitors in the carotenoid market
  • Fluctuations in currency exchange rates impacting profitability
  • Water supply impacting factory operations
  • Revisions in environmental laws increasing operational costs
  • Increases in energy prices
  • Potential for chemical leaks and environmental impacts
  • Risk of fires or explosions due to flammable chemicals
Mitigation Strategies
  • Accelerated technical R&D and developed innovative products to enhance market competitiveness
  • Enhanced product technology platform and strengthened brand marketing
  • Combined external resources and sought strategic partners
  • Adopted hedging strategies to manage currency risks
  • Implemented water-saving measures and developed response measures for water shortages
  • Formulated strategies and response measures to address changes in environmental laws
  • Installed Regenerative Thermal Oxidizers (RTOs) for VOC emission treatment and waste heat recovery
  • Implemented well-designed operating procedures and training
  • Installed detection and alarm systems for chemical storage and production areas
  • Implemented fire controls and provided emergency response equipment

Supply Chain Management

Supplier Audits: Regular annual audit assessments

Responsible Procurement
  • Rigorous supplier reviews and follow-up audits
  • Sample tests, documentation evaluations, and site evaluations for new suppliers
  • Requirement for suppliers to provide certifications (Kosher, Halal, ISO), test reports, and import permits

Climate-Related Risks & Opportunities

Transition Risks
  • Revisions in environmental laws and policies
  • Increases in energy prices

UN Sustainable Development Goals

  • Good Health and Well-being
  • Decent Work and Economic Growth
  • Life on Land

Developing safe food additives, creating local employment opportunities, reducing palm oil usage

Sustainable Products & Innovation

  • Palm Free products

Awards & Recognition

  • Market Penetration Award (2003)
  • Product Line Strategy Award (2005)
  • Silver Medal Award of Technology Commercialization (2013)
  • Benchmark Bio-Agriculture company (2017)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:5546 tCO2e/year (2023)
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:9181800 MWh/year (2023)
Water Consumption:55812 m3/year (2023)
Waste Generated:788.01 tons/year (2023)
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Reduced carbon emissions by 3.5% (though intensity increased by 8.3%)
  • Solvent recovery with 80.1% carbon reduction efficiency
  • VOCs reduction rate reached 98.32%, exceeding the regulatory standard of 95%
  • Air pollution reporting fees significantly decreased from NT$57,075 in 2021 to NT$5,211 in 2023

Social Achievements

  • Increased employee benefits with a new NT$2,000 monthly housing allowance
  • All employee salaries are 1.09 times higher than the legal minimum
  • 52 instances of employee health services provided by contracted occupational physicians and nurses
  • 2,568,426 hours of no-accident work time at the Guan Yin plant
  • Donation of 560 liters of alcohol for epidemic prevention

Governance Achievements

  • Consistently profitable for eight consecutive years
  • No illegal penalties related to product or service health and safety or product labeling
  • Completed 30 internal audit reports without finding any major abnormalities
  • Established a robust risk management system

Climate Goals & Targets

Long-term Goals:
  • Become a leading supplier in the food additive and preventive medicine industry, leading domestic manufacturers to establish a food safety and medical healthcare product system that meets international standards, enhancing the bio-technology of domestic manufacturers, strengthening international competitiveness, and creating social welfare
Medium-term Goals:
  • Become a leading international supplier of carotenoids and contribute to the field of carotenoids beneficial to human health
  • Develop product categories other than synthetic carotenoids to expand the industry portfolio
Short-term Goals:
  • Continue optimizing existing product production technology and reducing costs
  • Promote the use of RSPO-certified raw materials to protect tropical rainforests
  • Develop new products and technologies and protect R&D results with patents

Environmental Challenges

  • Fluctuations in exchange rates due to international business
  • Potential risks related to product quality and safety
  • Climate change impacts on operations (extreme weather, regulatory changes, energy price increases)
  • Supply chain disruptions due to climate events
  • Potential for air and water pollution incidents
  • Unforeseen power outages and cyberattacks
Mitigation Strategies
  • Exchange rate hedging strategies
  • Robust quality management systems (ISO 9001, ISO 22000, HACCP, FSSC 22000, TFDA)
  • Waste reduction and solvent recycling initiatives
  • Investment in RTO (Regenerative Thermal Oxidizer) for VOCs treatment and waste heat recovery
  • Water conservation measures
  • Emergency response plans and regular drills
  • System upgrades and enhanced cybersecurity measures
  • Diversified raw material sourcing strategies

Supply Chain Management

Supplier Audits: Annual supplier assessments and audits (100% compliance in 2023)

Responsible Procurement
  • Strict supplier selection criteria, including quality, delivery capability, service, and documentation
  • CSR questionnaires to assess social and environmental impacts

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events (flooding, typhoons)
  • Disruptions to raw material supply chains
Transition Risks
  • Changes in environmental regulations and policies
  • Increased energy prices
Opportunities
  • Development of energy-efficient products and processes
  • Reduced carbon footprint through waste reduction and solvent recycling

Reporting Standards

Frameworks Used: GRI Standards 2021

Certifications: ISO 9001, ISO 22000, HACCP, FSSC 22000, TFDA, Kosher, Halal

Third-party Assurance: Ernst & Young

UN Sustainable Development Goals

  • Goal 3: Good Health and Well-being
  • Goal 8: Decent Work and Economic Growth
  • Goal 13: Climate Action
  • Goal 15: Life on Land

Initiatives related to product safety, employee well-being, climate action, and rainforest protection.

Sustainable Products & Innovation

  • Palm Free and RSPO certified products
  • Animal-free products

Awards & Recognition

  • 2017 BioTaiwan Highlights Award