三芳化學工業股份有限公司
Climate Impact & Sustainability Data (2022, 2023-01-01 to 2023-12-31)
Reporting Period: 2022
Environmental Metrics
Total Carbon Emissions:30,510.8 tCO2e/year (Scope 1 and 2 combined, Kaosiung plant only; other plants estimated)
Scope 1 Emissions:8,242.1 tCO2e/year (Kaosiung plant only)
Scope 2 Emissions:22,268.8 tCO2e/year (Kaosiung plant only)
Scope 3 Emissions:Not disclosed
Renewable Energy Share:0.35% (2022, total group)
Total Energy Consumption:92,896.484 MWh/year (total group)
Water Consumption:411.2 million liters/year (total group)
Waste Generated:Not disclosed
Carbon Intensity:18.49 tCO2e/million NT$ (2022, Kaosiung plant only)
ESG Focus Areas
- Company Governance
- Environmental Protection
- Employee Well-being
- Social Contribution
Environmental Achievements
- Replaced low-energy equipment
- Introduced renewable energy
- Optimized production processes to reduce energy waste
- Adopted green materials
- Implemented water conservation measures
- Conducted carbon footprint assessments
- Changed work methods to reduce the environmental impact of transportation and logistics
Social Achievements
- Implemented methods to improve employee satisfaction and productivity (e.g., flexible working hours, sufficient rest and holidays, good pay and benefits, valuing employee opinions and suggestions, providing opportunities for employee career development and training, creating a safe and friendly work environment)
Governance Achievements
- Established ESG Development Committee to oversee environmental, safety, health, labor relations, corporate governance, and risk management
- Achieved a score in the top 21%–35% in the 2022 Corporate Governance Assessment
Climate Goals & Targets
Long-term Goals:
- Net-zero emissions by 2050
Medium-term Goals:
- Not disclosed
Short-term Goals:
- Reduce waste by 2% by 2025
- Reduce carbon emissions by 18% by 2025
- Reduce water consumption by 5% by 2025
- Increase the proportion of solvent-free eco-friendly products to 30% by 2025
- Increase the proportion of recycled polyester non-woven products to 100% by 2025
Environmental Challenges
- Supply chain disruptions due to the COVID-19 pandemic, geopolitical events, and economic factors
- Increased inventory due to strong demand and unpredictable logistics
- Climate change risks (e.g., water scarcity, extreme weather events)
- Transition risks (e.g., regulations on greenhouse gas emissions, renewable energy mandates)
Mitigation Strategies
- Developed alternative sourcing strategies
- Implemented inventory reduction and reduced purchasing policies
- Implemented energy efficiency measures (e.g., replacing equipment, using renewable energy)
- Improved water recycling and conservation
- Developed green technologies and increased sales of green products
- Incorporated climate risks into new factory site selection and construction design
Supply Chain Management
Supplier Audits: 2 suppliers audited on-site in 2022 (1.5% of total suppliers)
Responsible Procurement
- Supplier Code of Conduct
- Preference for suppliers with certifications (e.g., MRSL, GRS, IATF 16949, ISO 14001, Bluesign)
- Use of recycled materials (e.g., 95% recycled polyester in 2022)
Climate-Related Risks & Opportunities
Physical Risks
- Water scarcity
- Typhoons and heavy rain
- Rising average temperatures
Transition Risks
- Greenhouse gas emission regulations
- Renewable energy mandates
- Industry transformation (green products, green processes)
Opportunities
- Recycled raw materials
- Renewable energy
Reporting Standards
Frameworks Used: GRI Standards, SASB, TCFD
Certifications: ISO 9001, ISO 14001, IATF 16949
Third-party Assurance: SGS (limited assurance for Scope 1 and 2 emissions of Kaosiung plant)
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- DMF-free eco-friendly and bio-based artificial leather and film products
- Recycled/bio-based artificial leather, film, ball leather, and backpack materials
- Automotive interior products
- Garment film materials, water-stop strips
- Heating module products
Awards & Recognition
- Not disclosed
Reporting Period: 2023-01-01 to 2023-12-31
Environmental Metrics
Total Carbon Emissions:18,855 tCO2e/year (Scope 1 & 2 for parent company, Scope 3 data collection to be completed in Q3 2024)
Scope 1 Emissions:2,930.60 tCO2e/year (parent company)
Scope 2 Emissions:15,924.40 tCO2e/year (parent company)
Scope 3 Emissions:Data collection to be completed in Q3 2024
Renewable Energy Share:21.59% (electricity)
Total Energy Consumption:76,922,140 kWh/year (electricity) + 4,861,990 m³/year (natural gas) + 52,166,107 kg/year (biomass)
Water Consumption:403.1 million liters/year
Waste Generated:3,778 tons/year
Carbon Intensity:29.52 tCO2e/million NT$ (2023)
ESG Focus Areas
- Company Governance
- Environmental Protection
- Employee Well-being
- Social Contribution
- Supply Chain Management
- Product Quality and R&D
- Legal Compliance
- Water Resource and Wastewater Management
- Air Pollutant Management
- Waste and Hazardous Substance Management
- Energy Consumption and Management
- Talent Cultivation
- Occupational Health and Safety
Environmental Achievements
- Reduced greenhouse gas emissions by approximately 37% compared to 2022 (Scope 1 and 2 for the parent company).
- Water consumption reduced by 2% compared to 2022, and 27% compared to 2018.
- Waste reduced by 2% compared to 2018.
- Used 1,521 tons of GRS recycled polyester pellets.
- Reduced organic solvent usage in raw materials, lowering VOCs.
- Kaosiung plant signed a greenhouse gas offsetting cooperation letter of intent with the Kaohsiung Environmental Protection Bureau, aiming to offset approximately 4,140 tons of CO2e annually.
Social Achievements
- Average employee satisfaction was 71.6% in a survey conducted in May 2023.
- 27,563.7 hours of employee training provided in 2023.
- Implemented a flexible work schedule for R&D, administration, and sales departments in Q4 2023.
- Employee stock ownership trust plan scheduled for implementation in Q2 2024.
- Held a foreign employee forum in October 2023.
- Participated in SLCP third-party verification since 2020.
Governance Achievements
- Established an ESG Development Committee to oversee sustainability initiatives.
- Implemented a supplier code of conduct.
- Conducted 2 supplier audits in 2023 with an average score of 93.75%.
Climate Goals & Targets
Long-term Goals:
- Net-zero emissions by 2050.
Medium-term Goals:
- Achieve 30% renewable energy by 2030.
- Submit SBTi targets by 2026.
Short-term Goals:
- Reduce water consumption by 5% by 2025 (compared to 2018).
- Reduce waste by 2% by 2025 (compared to 2018).
- Reduce carbon emissions by 18% by 2025 (compared to 2018).
Environmental Challenges
- Economic slowdown due to inflation and reduced consumer spending.
- Supply chain disruptions.
- Climate change risks (extreme rainfall, extreme heat, water scarcity).
- Regulatory changes (carbon tax, renewable energy mandates).
- Talent shortage.
Mitigation Strategies
- Cost control measures.
- Flexible production strategies to adapt to market changes.
- Diversified production locations.
- Investment in renewable energy (solar panels).
- Implementation of energy-saving measures.
- Water conservation initiatives.
- Waste reduction and recycling programs.
- Development of green products and processes.
- Talent cultivation and retention programs (training, flexible work, employee stock ownership).
Supply Chain Management
Supplier Audits: 2 audits/year
Responsible Procurement
- Supplier code of conduct.
- Preference for suppliers with certifications (MRSL 3.1, GRS, ISO 9001:2015, IATF 16949, ISO 14001, Oeko-Tex®, Bluesign).
- ZDHC MRSL 3.1 or San Fang RSL testing for key raw materials.
- Diversification of raw material suppliers.
Climate-Related Risks & Opportunities
Physical Risks
- Extreme rainfall
- Extreme heat
- Water scarcity
Transition Risks
- Carbon tax
- Renewable energy mandates
- Industry transformation (green products, green processes)
Opportunities
- Renewable energy investment
- Development of circular economy products and services
Reporting Standards
Frameworks Used: GRI Standards, SASB, TCFD, UN SDGs
Certifications: ISO 9001, ISO 14001, IATF 16949
Third-party Assurance: SGS (for Scope 1 & 2 emissions of parent company in 2023; to be completed by June 2024)
UN Sustainable Development Goals
- Goal 7 (Affordable and Clean Energy)
- Goal 9 (Industry, Innovation, and Infrastructure)
- Goal 12 (Responsible Consumption and Production)
- Goal 13 (Climate Action)
San Fang's initiatives contribute to these goals through renewable energy adoption, sustainable product development, waste reduction, and greenhouse gas emission reduction.
Sustainable Products & Innovation
- Recycled/bio-based artificial leather, films, ball leather, and backpack materials.
- DMF-free eco-friendly and bio-based artificial leather and films.