Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable Development
• Environmental Protection
• Corporate Governance

Environmental Achievements

• Reduced greenhouse gas emissions for the tenth consecutive year in 2021, with a total reduction of 23,638.987 metric tons of CO2e.
• Installed 2,809.08 kW of solar energy in 2021 and planned to add another 560 kW in 2022.
• Successfully produced pre-consumer "100% recycled nylon fibers from waste silk" and post-consumer "recycled nylon fibers from discarded fishing nets", both obtaining GRS certification.

Social Achievements

• Implemented various employee welfare measures, including three-festival and birthday gift money, marriage allowance, funeral allowance, travel vouchers, dinner subsidy, children's scholarships, labor and health insurance, group accident insurance, annual free health checks, and uniforms.
• Provided three meals free of charge and central air-conditioned suite-style dormitories for plant personnel.
• Conducted 7,728 person-times of on-the-job training in 2021.

Governance Achievements

• Established an Audit Committee and a Remuneration Committee.
• Improved corporate governance evaluation result from the fifth level to the fourth level in 2021.
• Implemented the "Measures for the Performance Evaluation of the Board of Directors".

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the COVID-19 pandemic and extreme climate events.
• Increased raw material prices (CPL, oil).
• Intensified competition in overseas markets due to increased nylon chip production in Mainland China.
• Global regional economy restricting global sales and increasing export trade barriers.

Mitigation Strategies

• Inventory control and strategic buying of raw materials.
• Development of diversified and customized products.
• Expansion into new markets (India, Southeast Asia).
• Vertical integration of production (polyester POY, nylon filament).
• Continuous improvement of production lines and equipment upgrades.
• Implementation of energy-saving programs and application for carbon credits.
• Development of recycled products and sustainable technologies.

Supply Chain Management

Supplier Audits: 72% coverage (2021)

Responsible Procurement

• Supplier Commitment Letter requiring compliance with environmental protection, occupational health and safety, and labor and human rights regulations.

Climate-Related Risks & Opportunities

Transition Risks

• Increase in the price of greenhouse gas emissions
• Environmental regulations
• Cost of transforming to a low-carbon economy

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI 2016

Certifications: ISO 9001, ISO 14001, ISO 45001, GRS

Third-party Assurance: BSI

Sustainable Products & Innovation

• Recycled nylon and polyester fibers
• Recycled PET chips
• Energy-efficient products

Awards & Recognition

• Green label for "100% PET bottle recycled polyester DTY"

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Economic Performance
• Climate Change Risk Management
• Energy Management
• Greenhouse Gas Emissions
• Circular Economy
• Occupational Health and Safety Management
• Employee-employer Relationship
• Supply Chain Management
• Social Welfare

Environmental Achievements

• Reduced CO2e emissions by 1,639 metric tons in 2023 by switching from coal to natural gas.
• Saved 4.85 million kWh of electricity, reducing CO2e emissions by 2,399 tons.
• Generated 4.02 million kWh from solar power plants.
• Recycled 7,516 polymer bags (100% recycling rate), 366,425 textile hole boards (100% recycling rate), 1,192,072 paper tubes at Spinning Plant 1 (93% recycling rate), and 873,529 paper tubes at Spinning Plant 2 (100% recycling rate).
• Polyester and nylon products passed the Global Recycled Standard (GRS).

Social Achievements

• Did not implement unpaid leave, salary reductions, or layoffs despite significant production losses.
• Paid NT$17,293 thousand in pensions to employees.
• Provided scholarships to National Yunlin University of Science and Technology and National Chin-Yi University of Technology.
• Employment rate of people with disabilities exceeded government regulations (1.5% vs 1%).

Governance Achievements

• Established an "Operating Risk Management Process" addressing environmental, social, and corporate governance risks.
• Conducted ethics and integrity training for 197 managers (394 participant hours).
• Required 508 suppliers to sign an "Integrity Management Commitment".

Climate Goals & Targets

Environmental Challenges

• Unfavorable international economic trends (high inflation, high interest rates, high costs, low growth).
• Insufficient orders in the first three quarters of 2023.
• High inventory levels on the client side (eased in Q4 2023).
• Increased shipping costs due to the Red Sea crisis.
• Climate change risks (extreme weather, floods, changes in rainfall patterns).

Mitigation Strategies

• Implemented energy-saving and carbon-reduction initiatives.
• Set specific carbon reduction goals, strategies, and action plans.
• Upgraded energy-efficient equipment.
• Gradually setting up solar power plants.
• Expanding the proportion of recycled and eco-friendly products.
• Monitoring water consumption and implementing water-saving measures.
• Developing alternative sourcing strategies.
• Conducting climate change risk assessment based on the TCFD framework.

Supply Chain Management

Supplier Audits: 1 on-site audit in 2023

Responsible Procurement

• Supplier selection based on quality, price, lead time, quantity stability, integrity, and attention to expectations.
• Requirement for suppliers to sign a "Supplier's Pledge".

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (typhoons, floods)
• Changes in rainfall patterns
• Increase in average temperature

Transition Risks

• Increased carbon pricing
• Tightened regulations
• Low-carbon technology transformation
• Changes in customer behavior
• Increased costs of raw materials

Opportunities

• Recycled and reused materials
• Use of high-efficiency equipment
• Use of low-carbon energy
• Participation in the carbon trading market
• Use of new technology
• Shifting consumer preferences

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001, ISO 45001, GRS

Third-party Assurance: Crowe Taiwan; BSI Group Singapore Pte Ltd. (AA1000 AS v3 TYPE I Moderate Level)

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 13 (Climate action)
• Goal 8 (Decent work and economic growth)
• Goal 12 (Responsible consumption and production)
• Goal 3 (Good health and well-being)
• Goal 4 (Quality education)

Initiatives contribute to these goals through energy saving, carbon reduction, waste management, occupational health and safety, employee well-being, and community investment.

Sustainable Products & Innovation

• GRS-certified recycled products

Awards & Recognition

• Corporate Food Safety Volunteer Award
• Corporate Excellence in Catering Award