Climate Change Data

LCY Chemical Corp.

Climate Impact & Sustainability Data (2022-01 to 2022-12)

Reporting Period: 2022-01 to 2022-12

Environmental Metrics

Total Carbon Emissions:922,796 tCO2e/year
Scope 1 Emissions:205,742 tCO2e/year
Scope 2 Emissions:717,054 tCO2e/year
Renewable Energy Share:0.00361%
Total Energy Consumption:7,998,583 GJ/year
Water Consumption:6,015,244 tons/year
Waste Generated:22,421.2 tons/year
Carbon Intensity:0.605 tCO2e per ton of production in 2022

ESG Focus Areas

  • Climate Change
  • Green Operations
  • Sustainable Governance
  • Social Prosperity
  • Circular Innovation
  • Supply Chain Management
  • Information Security
  • Human Rights
  • Employee Welfare
  • Community Relations

Environmental Achievements

  • Carbon emissions decreased by 14.0% compared to 2021.
  • Energy consumption decreased by 8.9% compared to 2021.
  • Total SOx emissions decreased by 44% compared to 2021.
  • Total NOx emissions decreased by 14% compared to 2021.
  • Total PM emissions decreased by 10% compared to 2021.
  • Revenue from green products reached NT$3,259,627,000, accounting for 6% of overall revenue.
  • Water recycling rate of 5.13%

Social Achievements

  • Global employee engagement rate of 81% (5% increase from 2020).
  • 100% employee return rate and 89% retention rate after parental leave.
  • 59,000 hours of employee training.
  • 100% of employees underwent health checks.
  • Organized 6 Open House events.
  • Provided 71 scholarships through the LCY Education Foundation.

Governance Achievements

  • Established the Green Transformation Team (GTT) and Ethics Management Committee.
  • Set mid-term targets to reduce carbon emissions by 30% by 2030 and long-term targets to achieve net-zero emissions by 2050.
  • Published the "LCY Employee Guidelines" and "LCY Regulations of Whistleblowing System".

Climate Goals & Targets

Long-term Goals:
  • Net-zero emissions by 2050.
Medium-term Goals:
  • Reduce GHG emissions by 30% compared to 2019.
  • Reduce energy intensity by 30% compared to 2019.
  • Increase renewable energy ratio to 30%.
Short-term Goals:
  • Reduce GHG emissions by 4.2% compared to 2019.
  • Reduce energy intensity by 4.2% compared to 2019.
  • Increase renewable energy ratio to 15%.

Environmental Challenges

  • Rising operational and transportation costs.
  • Depreciated New Taiwan Dollar.
  • Global supply chain disruptions.
  • COVID-19 pandemic.
  • Stringent environmental regulations.
  • Water shortage risks.
Mitigation Strategies
  • Established the Green Transformation Team (GTT).
  • Invested in advanced systems (steam injectors, heat pumps, mechanical steam compressors).
  • Actively working with suppliers to procure green energy.
  • Adjusted safety stock levels.
  • Negotiated with suppliers for advance inventory or alternative materials.
  • Implemented rigorous epidemic prevention measures.
  • Facilitated remote work.
  • Transitioned to cleaner fuels.
  • Installed enclosed hoods to collect emissions.
  • Upgraded to more energy-efficient equipment.
  • Implemented water recycling and rainwater harvesting units.
  • Developed a water shortage contingency plan.

Supply Chain Management

Supplier Audits: 79% of 99 key suppliers audited in 2022

Responsible Procurement
  • Environmental Standards for screening new suppliers.
  • EHS management systems requirements.
  • Ethical practices (anti-corruption, anti-bribery).
  • Agreement of Non-Use of Conflict Minerals.

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events (floods, blackouts)
  • Water shortage
Transition Risks
  • Stringent environmental policies and regulations
  • Increasing cost of GHG emissions
  • Products and services replaced by low-carbon technologies
Opportunities
  • Development of low-carbon products
  • Renewable energy procurement
  • Water recycling

Reporting Standards

Frameworks Used: GRI Standards, SASB Standards, TCFD recommendations

Certifications: ISO 14001, ISO 50001, ISO 14064

Third-party Assurance: DNV Business Assurance Co., 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)

Initiatives contribute to these goals through carbon reduction, renewable energy use, sustainable product development, and waste reduction.

Sustainable Products & Innovation

  • Bio-based succinic acid
  • Electronic-grade isopropyl alcohol (EIPA)
  • TPV Outsole
  • SEP GP-8501U

Awards & Recognition

  • LCY Chairman Bowei Lee awarded as 2022 ITRI Laureate