Climate Change Data

Environmental Metrics

ESG Focus Areas

• Social

Social Achievements

• Launched EMPOWER Classes on handcrafted patchwork teaching in partnership with Neihu Women and Family Service Center, benefiting over 30 underprivileged women and families. Provided sewing machines and donated reusable denim fabrics as course materials.

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Employee well-being
• Corporate social responsibility
• Corporate governance

Environmental Achievements

• Reduced water consumption by 50% in Lesotho in 2007
• Improved wastewater system in Mexico, reducing chemical usage by 70%
• Improved wastewater system in Lesotho, improving discharge water quality, reducing chemical usage by 70%, and reducing wastewater COD emissions
• Recycled approximately 63 tons of raw cotton monthly in the spinning mill (10% of monthly cotton usage)
• Recycled approximately 2751 tons of cooling water monthly (reducing carbon emissions by 536 tons, equivalent to planting 44,300 trees)
• Implemented energy-saving system for air compressors, achieving a 40% energy saving rate (reducing carbon emissions by 60.5 tons, equivalent to planting 60,000 trees)
• Installed digital electricity meters throughout the factory, improving electricity usage efficiency by 20% and reducing contract capacity from 9,200KW to 6,200KW
• Wastewater sludge dewatering reduced waste by 155 tons per month (74% reduction)
• Achieved RCS and OCS certifications for recycled and organic cotton materials

Social Achievements

• Established an employee welfare committee
• Provided employee benefits such as birthday gifts, holiday bonuses, wedding and funeral subsidies, and childcare subsidies
• Implemented ISO 45001 occupational health and safety management system
• Passed WRAP certification in Lesotho
• Launched an 18-month Invest For Wellness (I4WE) project in Lesotho to improve employee health and well-being
• Provided employee training programs

Governance Achievements

• Established an audit committee in 2020
• Established a corporate governance unit
• Implemented a board performance evaluation method
• Regularly assessed the independence of the audit firm

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting global economic growth and consumer demand
• Rising labor costs in Asia
• Increased price competition in the textile and garment industry
• Fluctuations in cotton prices
• Supply chain disruptions
• Currency fluctuations
• Cybersecurity risks

Mitigation Strategies

• Strengthening core competitiveness through automation and supply chain optimization
• Investing in African production facilities
• Implementing an integrated order-taking model
• Implementing environmental protection measures
• Developing alternative sourcing strategies
• Implementing foreign exchange hedging strategies
• Establishing a cybersecurity risk management team

Supply Chain Management

Responsible Procurement

• Evaluation of suppliers' environmental and social records
• Requirement for suppliers to comply with environmental, occupational safety and health, and labor rights regulations

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Eco-friendly functional denim fabrics
• Recycled and organic cotton denim fabrics
• Laser-friendly dyeing methods

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced water consumption through improved washing formulas and introduction of ozone treatment equipment.
• Reduced waste discharge through sludge dewatering projects.
• Reduced energy consumption by using LED lighting.
• Obtained OEKO-TEX® Standard 100 green certification, RCS and OCS certifications.

Social Achievements

• Implemented safety training programs and regular health checkups for employees.
• Established a COVID-19 prevention team.
• Obtained WRAP certification in Lesotho.
• Implemented employee wellbeing initiatives, including childcare services and flexible work arrangements.
• Annual average salary increase of 4.7% in Taiwan.

Governance Achievements

• Established a Sustainability Marketing Department.
• Established a Corporate Governance Department.
• Established a salary and remuneration committee and an audit committee.
• Regularly assesses the independence of the audit firm.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the COVID-19 pandemic.
• Rising raw material prices.
• Rising labor costs in Asia.
• Climate change related risks (extreme weather, flooding, sea level rise).

Mitigation Strategies

• Increased investment in automation equipment to improve efficiency and reduce labor costs.
• Developed alternative sourcing strategies.
• Implemented water resource management, rainwater storage, and continuous monitoring systems.
• Introduced environmentally friendly ozone treatment equipment to reduce water usage.
• Developed energy-efficient products and processes.
• Diversified production locations to reduce reliance on any single region.

Supply Chain Management

Responsible Procurement

• Evaluation of suppliers' environmental and social records.
• ZDHC MRSL compliance.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Flooding
• Sea level rise

Transition Risks

• Regulatory changes
• Market shifts
• Carbon tax/trading schemes

Opportunities

• Development of energy-efficient products
• Development of climate-resilient products

Reporting Standards

Frameworks Used: GRI

Certifications: OEKO-TEX® Standard 100, WRAP, RCS, OCS

Sustainable Products & Innovation

• Recycled cotton products
• Organic cotton products
• Products using Tencel Future Indigo/Modal Color
• Products using other eco-friendly materials

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Introduced environmentally friendly dyeing process using laser machines and ozone treatment, reducing water usage; adopted LED lighting to lower energy consumption; established sludge dewatering project to reduce waste discharge.
• Achieved RCS and OCS certifications for recycled and organic cotton.
• Introduced German Karl Mayer company's GREENDYE environmentally friendly dyeing equipment.

Social Achievements

• Provided various employee welfare measures, including health check-ups, housing for overseas employees, parking, meals, and subsidies for weddings, funerals, and medical needs.
• Maintained good labor relations with regular labor-management meetings.
• Implemented training programs for employees, including safety and health education.

Governance Achievements

• Established a sustainability marketing department.
• Established an audit committee and a remuneration committee.
• Implemented a corporate governance system, including internal control and internal audit.

Climate Goals & Targets

Environmental Challenges

• Global economic slowdown due to inflation, rising interest rates, and the Russia-Ukraine conflict.
• Rising labor costs in Asia.
• Fluctuations in cotton prices.
• Competition from other textile and garment manufacturers.

Mitigation Strategies

• Strengthening core competitiveness through advanced processes and digital management.
• Diversifying product portfolio by customer and region.
• Investing in capital equipment to improve production efficiency.
• Implementing sustainable development initiatives.
• Developing alternative sourcing strategies.

Supply Chain Management

Responsible Procurement

• Evaluating suppliers' environmental and social records before engaging in transactions.
• Requiring suppliers to comply with environmental, occupational safety and health, and labor rights regulations.

Climate-Related Risks & Opportunities

Physical Risks

• Climate change

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 14001, OEKO-TEX® Standard 100, RCS, OCS

Third-party Assurance: Deloitte

Sustainable Products & Innovation

• Recycled cotton products
• Organic cotton products
• Energy-efficient products

Environmental Metrics

ESG Focus Areas

• Net zero emissions
• Green energy production
• Eco-friendly denim apparel
• Environmental protection
• Sustainable development
• Employee welfare

Environmental Achievements

• Introduced sustainable dyeing and washing process, reducing water consumption and waste discharge; using laser machines and ozone processors; using LED lights to reduce energy consumption; construction the dehydration installation of sludge

Social Achievements

• Actively enhance the working conditions in each production area; expand the participation in environmental protection issues and give back to the local communities

Governance Achievements

• Amendments to the Rules and Procedures of Board of Directors Meetings; Amendment to the Company's "Articles of Incorporation"

Climate Goals & Targets

Environmental Challenges

• Weak global economic demand due to increased interest rates, destocking, declined investment demand, worse-than-expected post-pandemic economic performance in China, US-China chip restrictions, Russo-Ukrainian War, Israel-Palestine Conflict, slowdown in global trade growth impacting Taiwan's export performance, fluctuating international raw material prices due to climate, pandemic, and wars, uncertainty in China's economic outlook, and monetary policies of various countries.
• Rising labor costs in Asia
• Fierce price competition from Bangladesh and other emerging markets

Mitigation Strategies

• Strengthening core competitiveness through sustainable processes and real-time information management, accelerating global planning, increasing customer groups, regions, and product profiles; focusing on denim and jeans development and production; developing brand customers; overseas production site planning and global logistics management; developing sales of related items, providing customized services, and increasing high-end jeans proportion; cultivating core business; restructuring the organization, expanding production capacities and adding value in advantageous production areas

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Eco-friendly denim apparel
• Functional denim