Climate Change Data

Chain Chon Industrial Co., Ltd.

Climate Impact & Sustainability Data (2022)

Reporting Period: 2022

Environmental Metrics

ESG Focus Areas

  • Environmental Protection
  • Employee Welfare
  • Corporate Governance

Environmental Achievements

  • Installed solar panels on the factory roof, reducing the factory's internal temperature by 2-3 degrees Celsius on average and resulting in practical energy savings.
  • Implemented waste separation and resource recovery, handing materials over to the recycling system for reuse.
  • Uses recycled pallets, liners, iron corner protection, etc., to reduce resource waste and environmental impact.

Social Achievements

  • Provides employees with various benefits, including wedding and funeral subsidies, sickness and hospitalization compensation, three festivals gifts, birthday gifts, dinners, and employee travel.
  • Organizes annual employee health examinations.
  • Provides orientation/on-the-job education and training, assistance in acquiring professional licenses, and external professional job training.

Governance Achievements

  • Established an Audit Committee and a Remuneration Committee.
  • Purchased Directors’ and Supervisors’ and Key Employees’ Liability Insurance.
  • Established the “Code of Conduct on Integrity” and “Guidelines for Integrity Business Operations and Behaviors”.

Climate Goals & Targets

Long-term Goals:
  • Develop the industrial plate market for all of China and Southeast Asia based on the Wuxi Mega Warehouse.
Medium-term Goals:
  • Integrate marketing and sales systems of overseas subsidiaries in China, Malaysia, Thailand, and the U.S.A. to achieve efficient global operation.
Short-term Goals:
  • Accelerate the economic scale development of business operations of subsidiaries in China.
  • Expand the scope of supply chain industrial service to significantly increase comprehensive benefits.

Environmental Challenges

  • Fluctuations in nickel prices affecting the cost and profitability of 300 series stainless steel.
  • Increased stainless steel production capacity in China leading to intense global competition and price fluctuations.
  • Unstable international political and economic conditions and increased regional protectionism potentially hindering international economic activities.
Mitigation Strategies
  • Developing and promoting low-nickel or nickel-free stainless steel materials to diversify product portfolio and reduce reliance on nickel-containing stainless steel.
  • Expanding sales and distribution channels to reduce inventory and establish strategic partnerships for group processing services.
  • Improving upstream and downstream integration to enhance end-product consumption combination and stabilize profitability.

Supply Chain Management

Responsible Procurement
  • Detailed price comparison, supplier review, and establishment of procurement contracts before making purchases.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRSs

Certifications: ISO 9001:2015

Third-party Assurance: PricewaterhouseCoopers (PwC) Taiwan

Sustainable Products & Innovation

  • Low nickel or nickel-free stainless steel materials