Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Social Responsibility
• Environmental Sustainability
• Employee Care
• Green Energy

Environmental Achievements

• Yang Mei Plant won Award of Excellence in Taoyuan City's 2017 Air Pollution Reduction Incentives
• Yang Mei Plant won Gold (1st place) in the large corporations division in the 2018 "Ministry of Economic Affairs Energy Conservation Benchmark Challenge"
• Solar power generators reduced carbon emissions by 1,737 tonnes per year

Social Achievements

• Won the first place in Award of Corporate Social Responsibility, traditional industry group, Global Views Monthly, three years in a row
• Selected as 2010 Excellent Company with Friendly Working Space by Ministry of Labor
• China Motor Training Center was honored as Excellent Training Unit in Taoyuan Area
• CMC's service system was ranked first among non-luxury brands in J.D. Power's customer satisfaction survey in 2014 and 2017
• CMC received "Top 5% Ranking in the TWSE Division" from the 1st to the 4th Corporate Governance Evaluation of the Taiwan Stock Exchange Corporation
• CMC received award of excellence in the "2018 Green Factory Counseling Program"
• MITSUBISHI ECLIPSE CROSS won Best Imported SUV in 2018 Car of The Year Awards
• Guarding Happiness Project made donations and provided shuttle buses for children in remote areas
• Vehicle maintenance service tour examined 1,007 vehicles, 60% higher than 2017
• Supported indigenous farmers by purchasing 17,166 kg of organic vegetables
• Remote Student Dream Graduation Project provided photography services for children in remote schools

Governance Achievements

• Established the Audit Committee in 2016
• Established the Compensation Committee
• Established the Ethical Corporate Management and Compliance Management Committee
• Established a Corporate Governance Officer position
• Achieved top 5% ranking among TWSE-listed companies for 4 consecutive years in corporate governance evaluation

Climate Goals & Targets

Environmental Challenges

• Weakened growth of the global economy and trade disputes affected car demands in Taiwan
• GCC safety regulations tightened in 2017 affected export sales
• Intensified market competition in China

Mitigation Strategies

• Introduced new car models (ECLIPSE CROSS, OUTLANDER) and improved distribution network
• Introduced special edition models and adjusted business framework to grow domestic and export sales
• Southeast Auto focused on promoting DX7, DX3, and launching DX5 and DX3 EV500
• Fujian Benz Automotive lowered selling prices to improve sales performance
• Strategic collaboration with CPC and government agencies to expand charging stations for electric scooters

Supply Chain Management

Supplier Audits: 116 in 2018

Responsible Procurement

• Long-term contracts with major suppliers
• Encouraging suppliers to obtain OHSAS18001 certification

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• e-moving electric scooter
• e-moving electric bike

Awards & Recognition

• Award of Corporate Social Responsibility
• Award of Corporation with the Highest Average Asset Return in the Past 20 Years
• Excellent Company with Friendly Working Space
• Excellent Training Unit
• Eco-Friendly Vehicle of the Year
• iF Design Award
• Taiwan Excellence
• Award of Good Design Mark
• Golden Pin Design Award
• Taiwan Excellence Award
• Award of High Efficient Dynamics
• Award of Energy Conservation
• Taoyuan County Excellent Enterprise Award for Environmental Protection and Green Energy
• Excellent Enterprise Award in Taoyuan City
• National Training Quality Award
• Green Classics Award
• Energy Conservation Excellence Award
• Award of Excellence in BusinessNext's Top Green Brands
• Excellence in Corporate Social Responsibility
• National HRD InnoPrize
• National Talent Development Awards
• Award of Excellence in Taoyuan City's air pollution reduction reward program
• 2018 Green Factory Counseling Program

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Social Responsibility
• Environmental Sustainability

Environmental Achievements

• Yangmei Plant received the Excellence Award in the industry category for water conservation from the Water Resources Agency, MOEA.
• Investment in green bonds up to NTD 200 million.
• Promotion of Little Liuqiu as a low-carbon island.
• Reduced VOC emissions by about 6.82% compared to 2020.
• Reduced waste solvents by 68.8% compared to 2017.

Social Achievements

• Won the gold prize for the "One-stop Health Hotline" in a competition.
• Provided Fuli Township, Hualien and Yanping Township, Taitung with shuttle services.
• Total number of participants in 2021 volunteer activities reached 2,719 people with volunteer hours totaling 3,273 hours.
• Provided 139 suppliers with procurement subsidies to mitigate their stress resulting from the dramatic rise of material prices.
• Held three beach cleanup activities.

Governance Achievements

• Won the highest recognition of the Corporate Governance Evaluation for eight consecutive years.
• Customer Satisfaction Index (CSI) of after-sales service reaching 979 (out of 1,000).
• Included in the Ftse4good Tip Taiwan ESG Index.

Climate Goals & Targets

Environmental Challenges

• Global supply chain and production disruptions caused by the COVID-19 pandemic.
• Impact of Level 3 Alert after the pandemic in May 2021 on electric scooter sales.
• Changes in electric scooter subsidies of local governments.
• Unstable supply of automotive chips.
• Dramatic rise of material prices caused by a global material shortage.

Mitigation Strategies

• Early preparations and timely responses with a well-operating risk management system.
• Cost pressure mitigation program for suppliers.
• Subsidy program for suppliers totaling NTD 51,362,610.
• Implementation of pandemic prevention measures.
• Development of alternative sourcing strategies.

Supply Chain Management

Supplier Audits: 91% of suppliers have obtained ISO 14001 certification.

Responsible Procurement

• Support for suppliers to obtain ISO 14001 certification.
• Cost pressure mitigation program for suppliers.
• Subsidy program for suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Draught and water shortage
• Power shortage

Transition Risks

• Product efficiency regulations and standards
• Collection of carbon fee/energy tax
• Changes in consumer behavior and preference

Opportunities

• Development of new energy vehicles
• Statutory subsidies to new energy vehicles
• Demand for low-carbon products and services
• Digital transformation and service experience

Reporting Standards

Frameworks Used: GRI Standards core options, AA1000 Accountability Principles (2008), SASB, TCFD

Certifications: ISO 14001, ISO 50001:2018

Third-party Assurance: SGS Taiwan Ltd. (materiality review and assurance)

UN Sustainable Development Goals

• No Poverty
• Quality Education
• Gender Equality
• Clean Water and Sanitation
• Affordable and Clean Energy
• Industry, Innovation and Infrastructure
• Sustainable Cities and Communities
• Responsible Consumption and Production
• Climate Action
• Life on Land
• Peace, Justice and Strong Institutions
• Partnerships for the Goals

The report details how CMC's initiatives contribute to these goals.

Sustainable Products & Innovation

• OUTLANDER PHEV
• e-VERYCA
• EZ1 electric scooter

Awards & Recognition

• Excellence Award for water conservation
• Gold prize for "One-stop Health Hotline"
• Corporate Health Responsibility (CHR) Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Management
• Pollution Prevention
• Circular Economy
• Workforce Deployment
• Attraction and Retention
• Training and Development
• Safe Workplace
• Social Inclusion
• Sustainable Governance
• Ethical Management
• Risk Management
• Financial Performance
• Information Security

Environmental Achievements

• Reduced coating shop VOCs emissions by 7.5% over 2021
• Reduced effluent discharge by 5.6% over 2021
• Reduced water consumption by 5,500t/year
• Built self-use PV installations at 536.5 kW to reduce emissions by about 309.9tCO2e/year

Social Achievements

• Awarded the 4th Work-Life Balance Award of the Ministry of Labor
• Launched the CMC Triple Zeros Evergreen Program for senior workforce development
• Supported the “Central Kitchen for Schools in Remote Townships” program
• Donated 12 DELICA vans to children’s welfare groups and schools in remote townships

Governance Achievements

• Ranked top 5% in Corporate Governance Evaluation for 9 consecutive years
• Increased independent director seats to a third of the Board
• Implemented the ISO 27001 Information Security Management System
• Zero personal data leakage

Climate Goals & Targets

Environmental Challenges

• Post-COVID inflation and rapid interest rate rises
• Increasing pressure from industry transformation and competition
• Global material and chip shortages leading to dramatic price rises
• Climate change risks (floods, power shortages, carbon tax)

Mitigation Strategies

• Improving corporate governance
• Upholding a people-oriented mindset
• Price adjustment mechanism with suppliers
• Spot goods procurement funding mechanism
• Developing NEVs and enhancing vehicle efficiency
• Implementing energy conservation and carbon reduction projects
• Building renewable energy installations
• Establishing business continuity plans

Supply Chain Management

Supplier Audits: 80 suppliers (2022)

Responsible Procurement

• Code of conduct
• Supplier sustainability requirements
• Price adjustment mechanism
• Spot goods procurement funding mechanism
• Guidance on energy conservation and carbon reduction

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons, floods, extreme precipitation
• Draught and water shortage
• Power shortage
• Damage to operational equipment
• Injury to personnel
• Supply chain interruption
• Employee health

Transition Risks

• Carbon tax/energy tax collection
• Sanction for non-compliance
• Cap and trade
• Product efficiency regulations and standards
• Demand for low-carbon products and services
• Changes in consumer behavior and preference
• Adverse environmental incident

Opportunities

• Planning of energy-efficient equipment
• Green process and environment-friendly manufacture
• Government subsidization for NEVs
• NEV development
• Digital transformation and service experience
• Development in line with consumer preference
• Creation of corporate resilience
• Renewables installation and development

Reporting Standards

Frameworks Used: GRI Standards (2021), SASB Standards for automobiles, TCFD recommendations

Certifications: ISO 14001, ISO 50001, ISO 46001, ISO 14064-1:2018, ISO 27001

Third-party Assurance: SGS Taiwan Ltd.

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)
• Goal 8 (Decent Work and Economic Growth)
• Goal 11 (Sustainable Cities and Communities)
• Goal 17 (Partnerships for the Goals)

CMC's initiatives contribute to these goals through various ESG programs and projects

Sustainable Products & Innovation

• CMC P350 Hybrid
• MG HS PHEV
• eMOVING e-scooters
• e-VERYCA

Awards & Recognition

• Top 5% of listed companies at the Corporate Governance Evaluation by TWSE (9 consecutive years)
• 17th (2nd in the automotive industry) at the Excellence in Corporate Social Responsibility by CommonWealth Magazine
• Silver award at the 4th National Enterprise Environmental Protection Award
• Silver award in the Corporate Sustainability Report Awards at the Taiwan Corporate Sustainability Awards (TCSA)
• Work-Life Balance Award of the Ministry of Labor
• 2002 BSI Award for Sustainable Resilience
• Gold award in Auto Part Store Category at the Best Service in Taiwan
• Gold award in the Auto Part Store Category at the Taiwan Best Customer Center Award of the Commercial Times

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Conservation
• Carbon Reduction
• Water Conservation
• Waste Reduction
• Biodiversity
• Supply Chain Sustainability
• Employee Well-being
• Corporate Governance
• Social Responsibility
• Community Engagement

Environmental Achievements

• Reduced carbon emissions by 10.19% across Scope 1 and Scope 2 categories since 2018.
• Became the first automotive company in Taiwan to commit to the Science-Based Targets initiative (SBTi).
• Implemented Internal Carbon Pricing (ICP) of NTD 1,039/tCO2e.
• Reduced VOC emissions by 3% compared to 2021 levels.
• Reduced effluent volume by 16.37% compared to 2022.
• Achieved a 59.5% recycling rate for packaging materials.

Social Achievements

• Launched the "Happiness Guardian Program," donating 15 vehicles benefiting 954 children.
• Supported rural transportation through the PuPu Ride Sharing Program, covering a total distance equivalent to circling Taiwan 144 times.
• Implemented the "CMC Triple Zero Evergreen Program" for senior employee development.
• Won several prestigious awards, including the "Top 10 Large Enterprises" in the CommonWealth Magazine's Excellence in Corporate Social Responsibility Award and the Taiwan Corporate Sustainability Awards (TCSA) – Gold Award for Corporate ESG Report.
• Established in-house kindergartens and after-school care centers.

Governance Achievements

• Ranked in the top 5% among publicly listed companies in the TWSE Corporate Governance Evaluation for ten consecutive years.
• Selected as a constituent of the FTSE4Good TIP Taiwan ESG Index.
• Elevated the Risk Management Committee to a functional committee.
• Implemented a robust whistleblower system.

Climate Goals & Targets

Environmental Challenges

• Climate change risks (physical and transition risks, including floods, droughts, extreme weather, and carbon pricing).
• Supply chain disruptions.
• Labor shortages.
• Cybersecurity threats.

Mitigation Strategies

• Developed alternative sourcing strategies.
• Implemented Internal Carbon Pricing (ICP).
• Developed the "CMC Triple Zero Evergreen Program" for senior employee development.
• Strengthened information security defenses and implemented a robust whistleblower system.
• Developed disaster response plans and conducted regular drills.

Supply Chain Management

Supplier Audits: 114 suppliers engaged; regular evaluations and audits.

Responsible Procurement

• Code of conduct
• Supplier sustainability requirements
• ISO 14001 and ISO 45001 certifications

Climate-Related Risks & Opportunities

Physical Risks

• Floods
• Droughts
• Extreme weather
• Wildfires

Transition Risks

• Carbon pricing
• Increasingly stringent regulations
• Changes in consumer preferences

Opportunities

• Development of energy-efficient products
• Renewable energy infrastructure development
• Government subsidies for new energy vehicles

Reporting Standards

Frameworks Used: GRI Standards (2021), SASB automotive industry standards, TCFD recommendations, TNFD

Certifications: ISO 27001 (Information Security Management Systems), ISO 14001 (Environmental Management System), ISO 50001 (Energy Management System), ISO 46001 (Water Efficiency Management System)

Third-party Assurance: Ernst & Young

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 10 (Reduced Inequalities)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

Initiatives contribute to these goals through renewable energy adoption, sustainable manufacturing practices, social inclusion programs, and carbon reduction efforts.

Sustainable Products & Innovation

• e-VERYCA E300 electric commercial vehicle
• eMOVING EZ-R electric scooter
• Mitsubishi Eclipse Cross PHEV
• MG ZS

Awards & Recognition

• Top 10 Large Enterprises in CommonWealth Magazine's CSR Award
• CommonWealth Talent Sustainability Award
• Family Friendly Workplace Award
• First Prize for Age-Friendly Outstanding Solution
• Taiwan Corporate Sustainability Awards (TCSA) – Gold Award for Corporate ESG Report and Leadership in Senior-Friendly Practices
• Ministry of Labor Workforce Development Agency’s "Job Redesign - Winner"