Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Environmental Protection
• Social Responsibility

Environmental Achievements

• Achieved carbon neutrality with PAS 2060 specification at Precise iManufacturing Center in Pingtung.
• S11 facial mask factory granted LEED Silver Certification by USGBC and organic certification by ECOCERT.
• 2MW solar panels installed on factory rooftops.

Social Achievements

• 1,253 students benefitted from rural science education program.
• Purchased 8000+ organic pineapples from a public welfare organization.
• Zero work safety accidents.

Governance Achievements

• Named 1st place in Medium-Size Enterprise Group at 2020 Excellence in Corporate Social Responsibility Award by CommonWealth Magazine.
• Listed in Asia 200 Best Under a Billion by Forbes for the fourth time.
• Implemented whistleblower protection policy and system.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the Covid-19 pandemic.
• Climate change impacts (extreme weather, raw material quality changes).

Mitigation Strategies

• Developed alternative sourcing strategies.
• Implemented climate change adaptation system.
• Carbon management practices (eco-design, greenhouse gas inventory, carbon reduction plans).
• Joined RE100 and EP100 initiatives.

Supply Chain Management

Supplier Audits: Regular audits every six months on key suppliers.

Responsible Procurement

• Supplier Code of Conduct
• Supplier Declaration

Climate-Related Risks & Opportunities

Physical Risks

• Floods
• Water scarcity
• Average temperature rise leading to biological extinction

Transition Risks

• Carbon emission fees
• Changes in raw material quality
• Investor ESG performance concerns
• Lower energy prices

Opportunities

• Expand ESG exposure
• Continue ecological restoration
• Provide low-carbon products and services
• Implement AI efficiency manufacturing

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14064-1, PAS 2060, LEED Silver (S11 factory), ECOCERT (S11 factory)

Third-party Assurance: SGS Taiwan Ltd.

UN Sustainable Development Goals

• Goal 2
• Goal 3
• Goal 4
• Goal 5
• Goal 7
• Goal 8
• Goal 9
• Goal 11
• Goal 12
• Goal 13
• Goal 14
• Goal 15
• Goal 16
• Goal 17

Various initiatives aligned with the listed SDGs are described in the report.

Sustainable Products & Innovation

• Net-zero carbon products
• Products using recycled agricultural by-products

Awards & Recognition

• 2020 Excellence in Corporate Social Responsibility Award (CommonWealth Magazine)
• Asia 200 Best Under a Billion (Forbes)
• 70 international invention awards in 2020

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Environmental Protection
• Social Responsibility

Environmental Achievements

• Installed solar power generation equipment with a total installed capacity of 1,362kW at Pingtung Rock Factory, generating over 1 million kilowatt hours of electricity annually and reducing greenhouse gas emissions by nearly 500 metric tons of carbon dioxide.
• Achieved a 4.7% reduction in energy consumption per unit of revenue compared to 2020.
• 20.4% of recyclable packaging materials used in products.
• 30% of products using circular economy concept raw materials.

Social Achievements

• Provided total vaccine subsidies and paid vaccination leave for employees.
• Arranged dedicated shuttles to transport colleagues to and from work during the pandemic.
• Offered various employee welfare programs, including the "TCI Coin" system.
• Received "HR Asia Best Companies to Work For in Asia" Award and "Happy Enterprise" Gold Award.

Governance Achievements

• Established the "Risk Management Regulations" to implement enterprise-level risk management.
• Implemented the TCFD framework to assess operational climate risks and opportunities.
• Zero business violations of integrity management regulations.
• 100% coverage rate of employee integrity management education and training.

Climate Goals & Targets

Environmental Challenges

• Impact of global epidemics, intensified climate change, and changes in the supply chain.
• Potential climate-related risks such as water scarcity, flooding, changes in raw material production and quality, and customer expectations for sustainability.
• Risk of supply shortages or disruptions in the raw material supply chain.

Mitigation Strategies

• Developed alternative sourcing strategies for raw materials.
• Implemented greenhouse gas reduction projects.
• Strengthened research and development to develop diversified products, reducing dependence on single raw materials.
• Increased the proportion of renewable energy use yearly.
• Provided low and zero carbon product solutions.
• Established a risk management group in the ESG Committee.
• Implemented ISO 50001 energy management system.

Supply Chain Management

Supplier Audits: 66 audits completed in 2021

Responsible Procurement

• Supplier Code of Conduct
• ESG self-assessment forms

Climate-Related Risks & Opportunities

Physical Risks

• Water scarcity
• Flooding

Transition Risks

• Policy and regulation changes (green energy certificates, carbon fees)
• Market changes (raw material production and quality)

Opportunities

• Increased product sales due to customer demand for green products
• Increased working capital due to investor interest in ESG performance

Reporting Standards

Frameworks Used: GRI Standards, 2021 edition

Certifications: ISO 14001, ISO 45001, ISO 50001, SEDEX, ECOVADIS

Third-party Assurance: PwC Taiwan (limited assurance)

UN Sustainable Development Goals

• Goal 2
• Goal 4
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 12
• Goal 13
• Goal 14
• Goal 15
• Goal 17

TCI's initiatives contribute to these SDGs through various programs and actions related to hunger, education, energy, economic growth, industry, innovation, inequality, consumption, climate action, marine and terrestrial ecology, and partnerships.

Sustainable Products & Innovation

• Low-carbon products
• Products using agricultural by-products
• Waterless facial masks
• Vegan Collagen Alternative

Awards & Recognition

• HR Asia Best Companies to Work For in Asia
• 1111 Job Bank Happy Enterprise Award Gold Award
• CSR Excellence in Corporate Social Responsibility Award
• International Innovation Awards
• EcoVadis Silver & Bronze medals
• 2021 Geneva International Exhibition of Inventions awards
• 2021 World Plant Based Awards
• 2021 China Beauty Expo – Meiyi Award
• 2021 China Nutrition Healthy Industry Entrepreneur Conference awards
• 2021 Health Food Innovation Award

Environmental Metrics

ESG Focus Areas

• Corporate governance
• Environmental protection
• Social responsibility

Environmental Achievements

• 1.5% reduction in carbon intensity by 2022
• 6.5% reduction in electricity consumption intensity compared to 2022
• Reduction of 729 tons of CO2 emissions compared to 2021 (Pingtung factory)
• Approximately 886 metric tons of carbon dioxide equivalent (CO2e) reduction compared to a non-solar photovoltaic system (solar panel installation)

Social Achievements

• Received "2022 HR Asia Best Companies to Work For in Asia" Award from HR Asia and "2022 Happy Enterprise" Gold Award from 1111 Job Bank
• 275 hours of education and training per capita, with a 97.8% course satisfaction rate
• Provided support to a total of 218 schools and institutions, benefiting approximately 5,630 individuals (Corner Bookshelf Project)
• Conducted 46 industry-academia interactions, one community concert, and collaborated with the Science Museum to promote science education exhibitions in Pingtung, with a total of 12,585 participants

Governance Achievements

• Zero business violations of integrity management regulations and conflict of interest incidents
• 100% coverage rate of employee integrity management education and training
• Established a board-level risk management committee
• No warnings or fines from relevant government agencies for violating corporate governance, labor, environmental protection, quality, or safety regulations in 2022

Climate Goals & Targets

Environmental Challenges

• Exchange rate risk
• Credit risk
• Liquidity risk
• Raw material supply chain risk
• Information security risk
• Climate change risk (transition and physical risks)
• Water scarcity
• Flooding

Mitigation Strategies

• Uses forward exchange for hedging (exchange rate risk)
• Adopts prepayment before shipment (credit risk)
• Maintains a strong cash position (liquidity risk)
• Diversification in sourcing countries, long-term contracts with suppliers (raw material supply chain risk)
• ISO 27001 certification, information security policy, regular information security drills (information security risk)
• Long-term carbon footprint management plan, internal carbon reduction initiatives, due diligence on the supply chain (climate change risk)
• Promote water management and water conservation programs (water scarcity)
• Capital expenditure related to improving drainage systems and investing in flood prevention (flooding)

Supply Chain Management

Supplier Audits: 66 audits completed in 2022

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Water scarcity
• Flooding

Transition Risks

• Green energy certificate competition
• Carbon fee
• Change in raw material production and quality
• Customer expectations for sustainability

Opportunities

• Green product sales

Reporting Standards

Frameworks Used: GRI Standards, 2021 edition, SASB Standards, TCFD recommendations

Certifications: ISO 27001, ISO 45001, ISO 14001, ISO 50001, LEED Gold (S11 Eco Facial Mask Factory and S12 automated warehouse), ECOCERT (S11 Eco Facial Mask Factory)

Third-party Assurance: PwC Taiwan (limited assurance)

UN Sustainable Development Goals

• Goal 2 (Zero Hunger)
• Goal 4 (Quality Education)
• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 10 (Reduced Inequalities)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 14 (Life Below Water)
• Goal 15 (Life On Land)
• Goal 17 (Partnerships for the Goals)

TCI's initiatives contribute to these goals through various programs and actions described in the report

Sustainable Products & Innovation

• Waterless sheet mask
• Djulis cream jar with recycled materials
• Facial mask bags with PCR plastics
• Biomimetic collagen

Awards & Recognition

• 2022 HR Asia Best Companies to Work For in Asia
• 2022 Happy Enterprise Gold Award
• Numerous awards for product innovation and sustainability

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Environmental Protection
• Social Responsibility

Environmental Achievements

• Installed solar power generation equipment at Pingtung and Shanghai factories, reducing greenhouse gas emissions.
• Implemented a loop system to convert waste heat into condensate for reuse, enhancing recycling efficiency.
• Reduced bottle labels size, reducing carbon emissions by 71%.

Social Achievements

• Launched the Sunrise Reading Companions Project, providing books to 252 schools.
• Supported local athletes in Pingtung with nutritional supplements and training subsidies.
• Partnered with National Taiwan Ocean University for sea turtle conservation, resulting in the birth of 2,273 sea turtles.

Governance Achievements

• Established a robust risk management framework.
• Implemented comprehensive integrity management policies and training programs.
• Maintained zero violations of human rights or labor rights.

Climate Goals & Targets

Environmental Challenges

• Climate change risks, including water scarcity and flooding in Pingtung.
• Fluctuations in raw material quality and prices due to climate change.
• Competition for green power certificates.

Mitigation Strategies

• Investing in climate risk mitigation projects (NT$39 million in 2023).
• Developing diversified sourcing strategies for raw materials.
• Investing in renewable energy facilities and energy efficiency improvements.

Supply Chain Management

Supplier Audits: 34 audits completed in 2023

Responsible Procurement

• Supplier Code of Conduct
• ESG self-assessment forms
• On-site audits

Climate-Related Risks & Opportunities

Physical Risks

• Water scarcity
• Flooding

Transition Risks

• Carbon fees
• Changes in raw material production and quality

Opportunities

• Increased demand for green products
• Opportunities related to improving ESG performance

Reporting Standards

Frameworks Used: GRI Standards, 2021 edition

Third-party Assurance: PwC Taiwan (limited assurance)

UN Sustainable Development Goals

• Goal 2
• Goal 4
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 12
• Goal 13
• Goal 14
• Goal 15
• Goal 17

TCI's initiatives contribute to these SDGs through various programs and actions (detailed in the report).

Sustainable Products & Innovation

• VeCollal® Type II (vegetarian collagen)
• Products using agricultural by-products

Awards & Recognition

• Numerous awards in research and development, ESG, and corporate social responsibility (see Appendix)