Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Economic Performance
• Product Quality and Innovation
• Legal Compliance
• Market Position
• Supply Chain Management
• Energy Management
• Waste Management
• Wastewater Management
• Hazardous Substance Management
• Labor relations
• Talent attraction and retention
• Training and education
• Employee benefits
• Occupational health and safety
• Social engagement and contribution

Environmental Achievements

• Introduced ISO14001 environmental management system in 2018
• Built solar energy equipment with a total capacity of 242KW in 2020, estimated CO2 emission reduction of 3.07 million kg
• Invested more than NT$5 million in R&D of energy-saving products in 2020, developed more than 10 low energy-consuming green products, and obtained 4 related patents
• Reduced total general business waste by 46% in 2020 compared to 2018

Social Achievements

• Invested $3,936,313 in social welfare in 2020
• Sponsored 2 rural sports events and 4 graduation exhibitions in 2020
• Kaulin Foundation offered more than 720 hours/classes in 2020, benefiting more than 200 people
• 100% of employees participated in training totaling 941 hours in 2020
• 100% retention rate for employees returning from childbirth leave after one year

Governance Achievements

• 33 products received CE mark as of 2020
• More than 90 distributors/dealers worldwide in 2020
• Established the Audit Committee in July 2020
• 100% of Taiwan employees received anti-corruption training in 2020

Climate Goals & Targets

Environmental Challenges

• Decline in demand for garments due to the COVID-19 pandemic
• Competition from mainland manufacturers and low prices from small manufacturers
• Temporary shutdowns in US and Vietnam operations due to the pandemic
• Shortage of human resources
• Violation of environmental regulations (wastewater effluent discharge exceeding suspended particulate standard)

Mitigation Strategies

• Timely adjustments to operating strategies, cost-cutting, and asset revitalization
• Increased investment in automation equipment
• Development of alternative sourcing strategies
• Implementation of energy conservation management measures
• Regular cleaning of activated carbon adsorption tower and weekly inspection of water suspended particulate abnormalities

Supply Chain Management

Supplier Audits: 135 suppliers in total, 121 key suppliers; annual quality and delivery evaluation

Responsible Procurement

• Supplier Code of Conduct
• Requirement for RoHS/3C compliance
• Localization of procurement

Climate-Related Risks & Opportunities

Physical Risks

• Extreme high temperature
• Lightning strikes
• Rainstorm

Transition Risks

• Regulations and policies (Autonomous Regulations of Low-carbon Green City Development in Taichung City)

Opportunities

• Development of energy-efficient products
• Enhance renewable energy generation

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001, ISO 9001

Third-party Assurance: Not disclosed

Sustainable Products & Innovation

• 700LQ, ASK-ESC100, ASP-SFS100, C007L energy-saving sewing machines
• Oil-free sewing machine (C007L/LX series)
• Garment scrap sewing trouser headset (F007K/FBQ)

Awards & Recognition

• 2019 iF design award

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Environmental Sustainability
• Social Responsibility

Environmental Achievements

• Completion of greenhouse gas inventory in 2023.
• Renewable materials accounted for 99.13% of overall material usage in 2023.
• Product research and development of micro-oil sewing machines to reduce energy consumption and environmental pollution.
• Obtained ISO 14001 environmental management system certification.

Social Achievements

• “Project ReSEW's” repurposing waste fabrics, creating employment opportunities.
• Providing diverse welfare system including education and training, health promotion initiatives, and employee shareholding trust.
• Established communication platforms and grievance mechanisms for employees.
• Actively participated in social welfare activities.

Governance Achievements

• Established a comprehensive internal controls and risk management systems.
• Regularly disclosed financial and non-financial information to the public.
• Established a Sustainability Policy and Code of Conduct.
• Formed a Sustainable Development Committee.

Climate Goals & Targets

Environmental Challenges

• High market uncertainty due to geopolitical factors and inventory pressure from major global customers.
• Increased operational costs due to potential carbon fees and tariffs.
• Increased waste generation.
• Excessive employee turnover rate.
• Declining market competitiveness.
• Risk of supply chain disruptions.
• Information security incidents.

Mitigation Strategies

• Deepening exploration of key markets in the Asia Pacific region, developing high-value-added models, energy-saving and consumption-reducing products, optimizing internal processes, establishing brand marketing.
• Implementing climate change risk management with reference to the TCFD framework.
• Implementing recycling initiatives for various waste categories.
• Implementing various policies on employee education, training and talent cultivation, and enhance employee treatment and welfare measures.
• Strengthening quality control, optimizing after-sales service, and creating products that cater to market demands.
• Multi-source procurement, optimizing supplier platform, and second supply chain planning.
• Strengthening information security mechanism and investing resources to reduce information security incidents.

Supply Chain Management

Supplier Audits: 359 (Gaoyin Factory, 2023); 11 (Taiwan Site, 2023)

Responsible Procurement

• Code of conduct
• Supplier sustainability requirements
• Environmental and social assessments

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons, floods
• Extreme weather events
• Rising average temperatures

Transition Risks

• Increased greenhouse gas emission pricing
• Enhanced emissions reporting obligations
• Rising raw material costs
• Changes in client behavior

Opportunities

• Development of energy-efficient products
• Use of more efficient production and distribution processes
• Use of low-carbon energy
• Participation in carbon market
• Switching to decentralized energy

Reporting Standards

Frameworks Used: GRI Standards (Global Reporting Initiative Standards), SASB (Sustainability Accounting Standards Board), TCFD (Task Force on Climate-related Financial Disclosures), UN SDGs (United Nations Sustainable Development Goals)

Certifications: ISO 14001, ISO 45001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 12
• Goal 13
• Goal 17

Integrating these sustainable development targets into the company's operational strategy.

Sustainable Products & Innovation

• Oil-free sewing machine
• Garment rag sewing trouser headphones
• Ultra-high-speed electromechanical integrated overlock sewing machine 700LQT/ECM

Awards & Recognition

• Not disclosed