Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Company Governance
• Employee Well-being
• Social Responsibility
• Supply Chain Management
• Product Responsibility
• Customer Service

Environmental Achievements

• Reduced carbon emissions by approximately 608 tons through various energy-saving measures (e.g., replacing air compressors, using energy-efficient lighting, reusing process wastewater, optimizing hot water bath control, and fuel substitution).
• Achieved a 51.6% reduction rate of volatile organic compounds (VOCs) using a biofilter.
• Switched from heavy oil to natural gas, significantly reducing particulate matter and sulfur oxides emissions.

Social Achievements

• Maintained harmonious labor-management relations.
• Provided various employee welfare benefits (e.g., domestic and international travel, year-end bonuses, wedding/funeral subsidies, and birthday celebrations).
• Offered employee training with an average of 16 hours per employee per year.
• Supported local communities through sponsorships and volunteer activities (e.g., sponsoring a charity bazaar, participating in blood donation drives).

Governance Achievements

• Established a Corporate Sustainability Committee to oversee ESG initiatives.
• Implemented a code of conduct and ethical guidelines for directors, supervisors, and managers.
• Maintained high board attendance rates (100%).

Climate Goals & Targets

Environmental Challenges

• Fluctuations in international raw material prices.
• Slowdown in global economic growth.
• Climate change risks (e.g., supply chain disruptions, natural disasters).
• Fire safety violation resulting in a fine.

Mitigation Strategies

• Developed alternative sourcing strategies.
• Expanded domestic and overseas markets.
• Developed differentiated products.
• Implemented disaster risk management mechanisms and emergency response procedures.
• Addressed fire safety violation through corrective actions.

Supply Chain Management

Supplier Audits: 1-2 suppliers per year

Responsible Procurement

• Supplier evaluation based on delivery time, quality, and short delivery.

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters

Transition Risks

• Raw material price fluctuations

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI G4 Core

Certifications: ISO 9001, ISO 14001, OHSAS 18001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• DMF-Free polyurethane foam film (KF series)

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Market Image
• Raw Materials
• Energy
• Water
• Wastewater and Waste
• Emissions
• Environmental Regulations
• Overall Environmental Performance (Environmental Expenditure)
• Environmental Complaints Mechanism
• Local Community Relations
• Legal Compliance (Fines)
• Occupational Health and Safety
• Employee Training and Education
• Product and Service Labeling
• Customer Health and Safety
• Social Impact Complaints Mechanism

Environmental Achievements

• Replaced heavy oil with natural gas as fuel, reducing particulate matter and sulfur oxides emissions.
• Implemented a high-efficiency low-carbon volatile organic compound (VOC) control technology – biofilter bed, achieving over 85% removal rate of organic pollutants.
• Improved wastewater recycling and reuse, significantly reducing wastewater discharge.
• Implemented various energy-saving measures, including replacing air compressors, using energy-saving lighting, and optimizing hot water bath control.

Social Achievements

• Provided competitive salaries and benefits exceeding local standards.
• Offered various employee welfare programs, including group insurance, monthly welfare funds, and subsidies for weddings, funerals, and childbirth.
• Encouraged employee participation in community activities and provided leave for participation.
• Organized twice-yearly blood donation drives within the company.

Governance Achievements

• Established a CSR committee to oversee sustainability initiatives.
• Implemented anti-corruption mechanisms and training.
• Complied with all relevant laws and regulations.

Climate Goals & Targets

Environmental Challenges

• Fluctuations in raw material prices and potential supply shortages.
• Impact of extreme weather events due to climate change.
• Maintaining legal compliance.

Mitigation Strategies

• Implemented a multi-supplier strategy for raw materials and monitored inventory levels.
• Developed adaptation strategies to mitigate the impact of extreme weather events, including strengthening factory safety and prevention measures.
• Regularly conducted legal compliance training and implemented internal control measures.

Supply Chain Management

Supplier Audits: 1-2 suppliers per year

Responsible Procurement

• Supplier evaluation based on ISO 9001 criteria, focusing on delivery time, quality, and short delivery.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (high temperatures, typhoons, lightning, heavy rain)

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4 Core

Certifications: ISO 9001, ISO 14001, OHSAS 18001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Kirin Film (solvent-free polyurethane foam film)

Awards & Recognition

• Operation Excellence Award from the Central Taiwan Poison Disaster Prevention Organization

Environmental Metrics

ESG Focus Areas

• Company Governance
• Products and Services
• Workplace Happiness
• Environmental Sustainability
• Social Care

Environmental Achievements

• Switched to natural gas from heavy oil as fuel, reducing particulate matter and sulfur oxides emissions.
• Developed 2K series products, a solvent-free polyurethane resin reducing VOCs emissions.
• Implemented various energy-saving measures, including upgrading air compressors and using energy-efficient lighting.

Social Achievements

• Maintained harmonious labor relations with above-minimum wage for employees.
• Provided comprehensive employee benefits, including group insurance, welfare funds, and various subsidies.
• Offered employee stock ownership trust plans for mid-level executives.

Governance Achievements

• Implemented electronic voting in the shareholders' meeting, increasing transparency.
• Held the first corporate briefing session to enhance communication with stakeholders.
• Established a salary and compensation committee to strengthen corporate governance.

Climate Goals & Targets

Environmental Challenges

• Fluctuations in raw material prices.
• Climate change risks impacting operations.
• Supply chain disruptions due to raw material dependence on foreign imports.

Mitigation Strategies

• Implemented a multi-supplier strategy and inventory control to mitigate raw material supply risks.
• Developed adaptation strategies to reduce the impact of extreme weather events.
• Developed alternative sourcing strategies for raw materials.

Supply Chain Management

Supplier Audits: 1-2 suppliers per year

Responsible Procurement

• Supplier assessments based on ISO 9001 criteria.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI G4 Core

Certifications: ISO 9001, ISO 14001, OHSAS 18001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• 2K series solvent-free polyurethane resin

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Environmental Compliance
• Occupational Health and Safety
• Corporate Governance
• Training
• Waste Management
• Air Pollution Management

Environmental Achievements

• Reduced energy consumption through various measures (e.g., air compressor pressure adjustment, wastewater reuse)
• Implemented 6S activities to improve factory environment and employee safety awareness.

Social Achievements

• Organized 6S activities to improve factory environment and employee safety awareness.
• Held regular labor-management meetings and monthly meetings for employee communication.
• Provided various employee welfare benefits (e.g., travel, bonuses, insurance).

Governance Achievements

• Established a functional Corporate Sustainability Committee (CSR Committee).
• Implemented a robust risk management system covering strategic, operational, financial, project, and disaster risks.
• Established anti-corruption mechanisms and a code of conduct.

Climate Goals & Targets

Environmental Challenges

• Fluctuations in raw material prices and potential supply disruptions.
• Risks associated with extreme weather events impacting factory operations.
• Environmental compliance issues (e.g., waste reporting, wastewater discharge).

Mitigation Strategies

• Implemented a multi-supplier strategy and inventory control to mitigate raw material supply risks.
• Developed green products and processes to reduce environmental impact.
• Strengthened factory safety measures and disaster preparedness plans.
• Took corrective actions to address environmental compliance violations.

Supply Chain Management

Supplier Audits: 1-2 suppliers per year

Responsible Procurement

• Supplier evaluation based on delivery time, quality, and on-time delivery.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 9001, OHSAS 18001, ISO 14001

Third-party Assurance: Not disclosed

Sustainable Products & Innovation

• Solvent-free PU adhesive
• Energy-saving shoe insole system materials

Environmental Metrics

ESG Focus Areas

• Economy
• Governance
• Society
• Environment

Environmental Achievements

• Developed environmentally-friendly solvent-free polyurethane adhesives for various applications (bed boards, solid wood composite floors, fabrics, paper lamination)
• Reduced dependence on high-pollution energy sources
• Strengthened waste reuse in the factory
• Implemented energy-saving measures resulting in 73,771 kWh savings

Social Achievements

• Maintained good communication with employees through regular meetings and an employee mailbox
• Provided competitive total remuneration, including attendance bonuses, year-end bonuses, and quarterly performance-based bonuses
• Offered various employee benefits such as group insurance, welfare fund, and subsidies for various life events
• Provided parental leave and facilitated employee reinstatement
• Conducted 4851 hours of employee training in 2019 (average 32.6 hours per employee)

Governance Achievements

• Established a CSR committee to integrate sustainability into business strategies
• Implemented a robust risk management system addressing operational, financial, and disaster risks
• Established clear ethical codes and compliance mechanisms, including a whistle-blowing channel
• Maintained a high Board of Directors attendance rate (96%)

Climate Goals & Targets

Environmental Challenges

• Fluctuation in raw material prices and potential supply shortages
• Impact of extreme climate events on operations
• Maintaining customer satisfaction (lowest score in three years)

Mitigation Strategies

• Diversified procurement strategies and maintained safety inventory
• Developed green products and production processes
• Established disaster risk management measures, including prevention and response plans
• Addressed customer dissatisfaction through discussions and continuous improvement

Supply Chain Management

Supplier Audits: 1-2 suppliers per year

Responsible Procurement

• Regular rating and evaluation of suppliers according to ISO 9001
• Requirement for limited use of necessary materials to ensure product safety
• Procurement diversification and contract signing with multiple suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (excessive heat, typhoons, heavy rain)

Opportunities

• Development of energy-efficient products and processes

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001, ISO 9001, OHSAS 18001

Sustainable Products & Innovation

• Environmentally-friendly solvent-free polyurethane adhesives

Environmental Metrics

ESG Focus Areas

• Environmental safety
• Operating performance
• Compliance with regulations
• Product research and development
• Risk management
• Talent development

Environmental Achievements

• Successfully developed environmentally friendly solvent-free 2k PU Adhesive for Flexible Package Lamination, Non-yellowing type Polyisocyanates Cross-linking Agent, and Environment-friendly solvent-free high permeability Hot Melt PU Adhesive for textile, environmentally-friendly PU prepolymer materials for hydrolysis-resistant casters, and thermoplastic PU materials for food contact conveyor belts
• Gradually reduced dependence on high-pollution energy sources and strengthened the reuse of wastes in the factory
• Significant energy-saving results: 3.08% electricity saving ratio in 2019 and 1.29% in 2020

Social Achievements

• Achieved employee diversity and equal opportunity in the workforce
• Maintained good communication with employees through regular meetings and an employee mailbox
• Provided competitive total remuneration system, quality job opportunities and challenging tasks

Governance Achievements

• Established the “Ethical Code for Directors and Managers”, “Code of Business Integrity”, “Handling Procedures for Internal Material Information” and “Whistle-blowing Channel and Protection System”
• No corruption incidents in 2020
• Implemented rigorous risk management across five aspects: Strategy Risk, Operation Risk, Finance Risk, Plan and Project Risk, and Disaster Risk

Climate Goals & Targets

Environmental Challenges

• Suspension of work, lack of raw materials, and lack of containers due to the Covid-19 pandemic
• Mass price fluctuation of raw materials required for operation or shortage of supply for materials no longer commercially available
• Uncertainty on the time and amount of receivables being claimed
• Extreme climate events (excessive heat, typhoons, thunder strikes and heavy rain) affecting operations

Mitigation Strategies

• Integrated resources within the group (cross-strait production and sales complement each other)
• Contact with multiple suppliers and inventory monitoring based on order demands
• Investigate the customer's financial status and offer sales on credit for those with good standing
• Establish a reserved fund system
• Develop green products and production processes, analyze actual and potential impact of extreme climate on operations, strengthen safety protection in sites

Supply Chain Management

Supplier Audits: 1-2 suppliers per year

Responsible Procurement

• Long-term contracts with suppliers
• Procurement diversification
• Supplier evaluation according to ISO 9001

Climate-Related Risks & Opportunities

Physical Risks

• Excessive heat, typhoons, thunder strikes and heavy rain

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001, ISO 45001

Sustainable Products & Innovation

• Environmentally friendly solvent-free 2k PU Adhesive
• Non-yellowing type Polyisocyanates Cross-linking Agent
• Environment-friendly solvent-free high permeability Hot Melt PU Adhesive
• Environmentally-friendly PU prepolymer materials
• Thermoplastic PU materials

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Operational Performance
• Honest Operation
• Legal Compliance and Ethics
• Innovative Technology and Services
• Risk Management
• Environmental Management
• Waste Management
• Water Use and Management
• Climate Strategy and Action
• Workplace Health and Safety
• Labor and Employment Relations
• Product Responsibility
• Supplier Management
• Customer Relationship/Property Management
• Talent Recruitment and Retention

Environmental Achievements

• Achieved a total power saving of 102,947 kWh by replacing old equipment, reducing ice water machine temperature, and replacing office LED lights.
• PE film recycling in raw material packaging reached 510kg in Q4 2021, with an 18.3% recovery rate.
• Process cooling water reuse rate of more than 70%.

Social Achievements

• Zero labor dispute cases in 2021.
• Customer satisfaction score reached 4.32.
• Total training hours reached 2087 hours (approximately 9.7 hours per employee).

Governance Achievements

• Zero corruption incidents in 2021.
• No violation of laws and regulations.
• Board of directors held six meetings with 97% average attendance.

Climate Goals & Targets

Environmental Challenges

• Fluctuations in raw material prices and insufficient supply.
• Uncertainty in accounts receivable recovery time and amount.
• Impact of the global Covid-19 pandemic, cargo congestion, exchange rate fluctuations, and supply and demand imbalance caused by extreme climate change.

Mitigation Strategies

• Non-single supplier strategy, quarterly/monthly/weekly discussions to improve demand forecasting.
• Investigating customer financial situations, credit sales for better customers, controlling accumulated credit sales amount within credit limits, and stepping up collection or litigation against customers who have not settled their arrears within the time limit.
• Establishing a disaster risk management mechanism and formulating emergency response management procedures.
• Developing green products and processes to reduce environmental impact.

Supply Chain Management

Supplier Audits: 100% in 2021

Responsible Procurement

• Regular supplier evaluation including green procurement, child labor, factory manufacturing and technology, quality, process management, environmental protection, and 6S implementation.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Reporting Standards

Frameworks Used: GRI Standards (2016), SASB, TWSE's Regulations Governing the Preparation and Reporting of Sustainability Reports by Listed Companies

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018

Third-party Assurance: Ernst & Young (EY)

Sustainable Products & Innovation

• Environmentally friendly solvent-free single liquid foaming adhesives for woodworking
• Polyurethane coatings for textile materials
• Polyurethane coated insoles for biological materials
• Polyurethane foam materials for biological materials shock absorbers
• Polyurethane midsole materials recycled from recycled PET reproduction materials

Environmental Metrics

ESG Focus Areas

• Sustainability
• CO2 reduction
• ESG
• Recycle

Environmental Achievements

• Developed green and eco-friendly materials, including solvent-free one-component and two-component PU, thermoplastic PU, water-based PU, and low-energy UV-curable acrylic resins.
• Focused on the development and promotion of recycled, bio-based sustainable, and carbon reduction-related products.

Social Achievements

• Not disclosed

Governance Achievements

• Established an audit committee composed entirely of independent directors.
• Implemented regular communication between independent directors, auditors, and internal audit personnel.

Climate Goals & Targets

Environmental Challenges

• Decreased sales volume and prices due to unfavorable economic conditions (COVID-19 pandemic, Russo-Ukrainian war, inflation, rising costs, and transportation prices).
• Increased exchange rate gains due to US interest rate hikes and dollar appreciation.

Mitigation Strategies

• Purchasing competitively priced raw materials at opportune times.
• Employing flexible marketing strategies considering production locations and sales region trade agreements.
• Reducing reliance on high-pollution energy sources, implementing lean production, enhancing in-plant waste reuse, reducing waste emissions, and developing eco-friendly products.
• Diversifying markets and expanding into Southeast Asian markets.
• Optimizing group synergy and striving towards budget targets.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 11 (Sustainable Cities and Communities)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)
• SDG 15 (Life on Land)

The report mentions alignment with these SDGs through initiatives related to sustainable materials and carbon reduction, but lacks detailed explanations.

Sustainable Products & Innovation

• Solvent-free PU, water-based PU, thermoplastic PU, low-energy UV-curable acrylic resins, recycled, bio-based sustainable, and carbon reduction-related products.

Awards & Recognition

• Not disclosed