Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employee Welfare
• Corporate Governance

Environmental Achievements

• Obtained ISO14001 environmental management system certification and ISO45001 occupational health and safety management system certification.
• Used 3,525 barrels of environmentally friendly packaging (IBC containers) in 2019.
• Developed large-scale laminar resin for offshore wind turbines.

Social Achievements

• Established the Employee Welfare Committee to organize activities for employees and their families.
• Provided subsidies including birthday gifts, Labor Day bonuses, festival bonuses, parental bonuses, relocation bonuses, wedding gifts and funeral condolences.
• Total education and training expenses of NT$345,000, and average training hours of 3 hours per person in 2019.

Governance Achievements

• Established the Remuneration Committee and Audit Committee.
• Implemented the “Ethical Corporate Management Best Practice Principles”.
• Established a whistle-blowing mechanism for internal and external personnel.

Climate Goals & Targets

Environmental Challenges

• Differences in scale between the Company and its foreign competitors.
• Single financing channel.
• Price fluctuations in the supply of carbon fibers.

Mitigation Strategies

• Formulating sales strategies to expand market share.
• Accelerating global expansion strategy, tapping into the Asian market, conducting industry chain integration, and strengthening comprehensive skills.
• Having good cooperative relationships with various carbon fiber suppliers and suppliers in China.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Suppliers are required to sign the Honesty and Integrity Statement.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions such as typhoons.

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products.

Reporting Standards

Frameworks Used: GRI Standards of the Global Reporting Initiative (GRI)

Certifications: ISO 14001, ISO 45001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Environmentally friendly vinyl ester resins
• Low-smoke and flame-retardant rail transit materials
• Carbon fiber composite materials for offshore wind blades
• Long Fiber Thermoplastics (LFT)
• Composite materials for corrosion and leakage prevention of ground petroleum storage tanks

Awards & Recognition

• 2017 Taiwan Corporate Sustainability Awards (TCSA) - Corporate Sustainability Report (Silver Award)
• 2018 Taiwan Corporate Sustainability Awards (TCSA) - Corporate Sustainability Report (Silver Award)
• 2018 Renewable Energy Asia Pacific Project Finance Award of Project Finance International (PFI)

Environmental Metrics

ESG Focus Areas

• Carbon Neutrality
• New Materials Innovation
• Circular Economy
• Corporate Governance
• Employee Relations
• Environmental Sustainability
• Social Engagement
• Climate Change Strategies
• Product Responsibility
• Sustainable Supply Chain Management

Environmental Achievements

• Reduced natural gas consumption by 46,619 kWh compared to 2020.
• Reduced diesel consumption by more than 80% since 2018.
• Achieved 100% process water recycled and reused.

Social Achievements

• Conducted 185 employee education and training classes with 1,503 participants and 3,609 total hours.
• Maintained zero occupational fatalities and injuries over the past three years.
• Incorporated ethical management into internal training.
• Launched a whistleblower mailbox.
• Signed an Integrity Commitment with customers, suppliers, and employees.
• Donated funds for charitable activities and pandemic prevention.

Governance Achievements

• Ranked second in the 8th Corporate Governance Evaluation in 2021.
• Ranked top 5% in the category of “Market Value of NT$5 Billion to NT$10 Billion” in the 8th Corporate Governance Evaluation.
• Established the Sustainable Development Committee.
• Formulated a Corporate Sustainability Policy.
• Implemented risk management and internal control mechanisms.
• Obtained certifications from independent third-party agencies (DNV-GL, ISO45001/9001/14001).

Climate Goals & Targets

Environmental Challenges

• Rising cost of raw materials.
• Impact of COVID-19 pandemic.
• Climate change risks (extreme weather, transition to low-carbon technology).
• Talent shortage.
• Fluctuations in international crude oil prices and raw material markets.
• Changes in local environmental protection policies.

Mitigation Strategies

• Adjusting production and sales operations in response to market changes.
• Effectively controlling interest rate and exchange rate fluctuation risks.
• Implementing relevant laws and regulations.
• Developing diverse financing channels.
• Maintaining good relationships with external financial institutions.
• Developing risk management-oriented business models.
• Implementing risk control tables and countermeasures.
• Regularly generating reports on risk management.
• Investing in energy-saving automation equipment.
• Promoting energy saving, carbon reduction, and recycling.
• Investing in green energy industries.
• Developing recyclable resin products.
• Implementing production automation.
• Diversifying procurement options.
• Increasing storage space.
• Conducting talent demand analysis and implementing talent training and recruitment processes.
• Creating competitive compensation and employee benefits packages.

Supply Chain Management

Supplier Audits: 20 suppliers completed Supplier Self Assessment Form in 2021; on-site audits suspended in 2021 due to COVID-19.

Responsible Procurement

• Regular supplier evaluations.
• On-site audits for major suppliers.
• Supplier self-assessments.
• Annual contracts with key raw material suppliers.
• Green procurement process.
• Integrity Commitment Sign-on.

Climate-Related Risks & Opportunities

Physical Risks

• Drastic changes in climate patterns
• Increased severity of extreme weather events

Transition Risks

• Cost of transition to low-carbon technology
• Increase in pricing of greenhouse gas emissions
• Mandatory GHG reporting

Opportunities

• Development and addition of low-carbon goods and services
• Being in line with international sustainable development goals

Reporting Standards

Frameworks Used: GRI Standards, Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies, Taiwan Stock Exchange Corporation Rules Governing the Preparation and Filing of Sustainability Reports by TWSE Listed Companies, TCFD framework, SASB Standards, UN SDGs

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

Third-party Assurance: Deloitte & Touche (limited assurance)

UN Sustainable Development Goals

• Goal 4 (Quality Education)
• Goal 1 (No Poverty)
• Goal 7 (Affordable and Clean Energy)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 16 (Peace, Justice, and Strong Institutions)

Initiatives contributing to SDGs through education support, poverty reduction, renewable energy promotion, responsible resource management, climate action, and ethical governance.

Sustainable Products & Innovation

• Recyclable thermoset epoxy resin products EzCiclo/CleaVER
• Low viscosity high performance infusion resin for offshore wind power
• Recyclable and reusable resins for fan blades
• Recyclable and lightweight composite resins for rail transport
• VOC-free molded SMC vinyl ester resins for new energy vehicles
• Thermoplastic carbon fiber composites

Awards & Recognition

• Taiwan Corporate Sustainability Awards (TCSA)—Corporate Sustainability Report Award (six consecutive years)
• CommonWealth Magazine Top 50 Companies in Carbon Reduction Efforts in Taiwan
• 2019 Green Energy and Environmental Protection Award
• The 3rd Jiangsu Purple Peak Award

Environmental Metrics

ESG Focus Areas

• Environmental sustainability
• Social good
• Happy workplace
• Business management
• Corporate governance

Environmental Achievements

• Developed recyclable thermosetting epoxy resin EzCiclo
• Obtained ISO 14064-1 certification
• Swancor Highpolymer Co., Ltd., Swancor (Tianjin), and Sunwell Carbon Fiber obtained ISO 14064-1 and ISO 50001 certification
• Swancor EzCiclo obtained the ISO 14021: 2016 Sustainable Recycling Material Certification
• Partnered with local organizations and farmers' associations to implement the “Good Air for Blessed Fields” zero-burning rice straw campaign, reducing 720 metric tons of CO2

Social Achievements

• Achieved diversity, equality, and inclusion in the workplace
• Implemented industrial talent cultivation and improved academic and industry integration
• Continued to care for local and rural education in Nantou and develop diverse learning abilities
• Implemented volunteer leave to encourage employees to participate in volunteer services, with 89 colleagues and their family members participating
• Organized 17 consecutive mountain cleanup hike events

Governance Achievements

• Renamed the Corporate Sustainability Committee to the Sustainable Development Committee, upgrading it to a functional committee and establishing a dedicated “Promotion Office”
• Ranked 2nd during the 9th Corporate Governance Assessment in 2022, winning the top 5% ranking
• Introduced an intellectual property rights management system and obtained the TIPS A-level certification

Climate Goals & Targets

Environmental Challenges

• Impact of the COVID-19 pandemic
• Changes in local government policies
• Market information uncertainty
• Drastic changes in climate patterns
• Cost of transition to low-carbon technology

Mitigation Strategies

• Used videos or emails to promote products and conducted on-site visits to foreign customers only once
• Made immediate adjustments to production and sales operation policies
• Effectively and promptly controlled interest rate and exchange rate fluctuation risks
• Established and researched thermal heating production lines
• Continued to use the most advanced technology to manufacture low-carbon products

Supply Chain Management

Supplier Audits: 92.63% coverage (written audits in 2022)

Responsible Procurement

• Code of conduct
• Supplier sustainability requirements
• Priority to purchase “Level 1 Energy Efficiency” or “Energy Label” electrical appliances
• Recycling and reuse of IBC barrels, solvent drums, pallets
• Green labelling for consumables

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events such as typhoons and floods
• Abnormally high or low temperatures

Transition Risks

• Cost of transition to low-carbon technology
• Imposition of carbon fees

Opportunities

• Development and addition of low-carbon goods and services
• Being in line with international sustainable development goals

Reporting Standards

Frameworks Used: GRI Standards, UN Sustainable Development Goals (SDGs), Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies, Taiwan Stock Exchange Corporation Rules Governing the Preparation and Filing of Sustainability Reports, Task Force on Climate-Related Financial Disclosures (TCFD) framework, Sustainability Accounting Standards Board (SASB) Standards, AA1000 SES Stakeholder Engagement Standards

Certifications: ISO 14064-1, ISO 50001, ISO 14021: 2016, ISO 9001: 2015, IATF 16949: 2016, AS 9100: 2016, TIPS A-level

Third-party Assurance: Deloitte & Touche

UN Sustainable Development Goals

• Goal 7: Affordable and Clean Energy
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 4: Quality Education
• Goal 17: Partnerships for the Goals

Initiatives align with SDGs through carbon neutrality efforts, circular economy development, education and talent cultivation, community engagement, and industry collaborations.

Sustainable Products & Innovation

• EzCiclo
• CleaVER
• HYVER resin
• FireRex FR110
• Thermoplastic carbon fiber composites

Awards & Recognition

• Taiwan Corporate Sustainability Awards (TCSA) — Corporate Sustainability Report Award (seven consecutive years)
• JEC Composites - BEST OF 2022, Top 10 Composites World products of 2022
• 2022 Taiwan Chemical Industry Association (TCIA) Product Innovation Award
• 2022 SAMPE China Innovation Award
• 19th National Innovation Award 2022 - Enterprise Innovation Award
• JEC WORLD 2023 Innovation Award - Sports and Leisure
• Taipei Cycle d&i Awards 2023
• JEC Composites Innovation Awards 2023 (China)

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Environmental Sustainability
• Social Cohesion
• Green Circular Economy
• Carbon Neutrality

Environmental Achievements

• Developed recyclable thermosetting material EzCiclo and won numerous awards.
• Developed rail transit composite materials to meet the needs of weight reduction and energy saving.
• Invested in CCUS (carbon capture, reuse, and storage), developed the chemical formula for carbon capture absorbent, and collaborated with Tsinghua University to design carbon capture equipment.
• Developed microwave heating technology to reduce waste, which is more efficient and environmentally friendly than incinerators.
• Reduced GHG emissions (Scope 1 and 2 combined) from 2799.128 tCO2e in 2022 to 4068.953 tCO2e in 2023 (Note: This increase is mentioned in the report but requires further investigation to understand the reasons behind it).
• Achieved 3.75% renewable energy share in total energy use.
• Installed 444.44KW solar photovoltaic power generation equipment.

Social Achievements

• Won the “2023 Happy Enterprise Gold Award”.
• Ranked in the top 5% during the 10th Corporate Governance Evaluation in 2023.
• Allocated funds for public welfare activities every year since 2007.
• Focused on talent development and sponsorship for primary and secondary schools in remote areas of China since 2014.
• Held the “Swancor Cup” for the 8th consecutive year in 2015, providing a platform for composite materials students to showcase their talents.
• Organized 18 consecutive mountain cleanup hike events since 2014.
• Implemented volunteer leave, with 89 colleagues and their family members participating.
• Provided care and companionship to 15 elderly people from the Qalang mb'ala Tribe in Renai Township, Nantou through collaboration with local organizations in providing telemedicine services.
• Average training hours per employee/year: 1.12 hours.

Governance Achievements

• Established a Sustainable Development Committee (ESG Committee).
• Won the top 5% honor in the corporate governance evaluation for the first time.
• Introduced an intellectual property management system in 2022, and passed TIPS certification in 2023.
• Established a system to link remuneration and ESG performance.
• Obtained DNV-GL, ISO 45001, ISO 9001, ISO 14001, and other certifications.
• Implemented human rights policies, performed human rights due diligence, and enhanced human rights awareness.

Climate Goals & Targets

Environmental Challenges

• Decreased consolidated revenue in 2023 (25.35% decrease compared to 2022).
• Impact of the pandemic on on-site supplier audits.
• Climate change risks (extreme weather events, cost of transition to low-carbon technology).
• Financial risks (market risk, credit risk, liquidity risk).
• Risks of changing environmental protection policies in the chemical industry.
• Management level risk (failure to cultivate or hire talent with suitable qualifications).

Mitigation Strategies

• Implementing various mechanisms from the governance, environmental, and social aspects.
• Focusing on EzCiclo and CleaVER for mass production, high volume, and diverse applications.
• Deepening and increasing industry-academia collaboration, focusing on carbon neutralization, carbon capture, storage and utilization, and green circular economy solutions.
• Actively investing in the development of the circular economy.
• Merging companies with excellent teams and products to generate synergy and strengthen competitiveness.
• Developing risk management-oriented business models.
• Formulating disaster prevention plans according to regional characteristics.
• Promoting energy saving, carbon reduction, and recycling.
• Launching EzCiclo and other environmentally friendly green energy products.
• Regularly conducting talent demand analysis to implement talent training and recruitment processes.

Supply Chain Management

Supplier Audits: 2 on-site audits in 2023; supplier self-assessment completed in 2022 (92.63% recovery rate)

Responsible Procurement

• Code of conduct
• Supplier sustainability requirements
• Green procurement regulations
• Prioritization of local suppliers meeting green environmental protection criteria

Climate-Related Risks & Opportunities

Physical Risks

• Drastic changes in climate patterns
• Extreme weather events

Transition Risks

• Cost of transition to low-carbon technology
• Increased greenhouse gas emission price

Opportunities

• Development and addition of low-carbon goods and services
• Being in line with international sustainable development goals

Reporting Standards

Frameworks Used: GRI Standards, Sustainable Development Best Practice Principles for TWSE / TPEx Listed Companies, Taiwan Stock Exchange Corporation Rules Governing the Preparation and Filing of Sustainability Reports by TWSE Listed Companies, TCFD framework, SASB Standards

Certifications: ISO 14001, ISO 45001, ISO 9001, ISO 14064-1, TIPS

Third-party Assurance: DNV-GL

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)

Swancor's initiatives contribute to these goals through the development of sustainable products, renewable energy adoption, waste reduction, and carbon emission reduction efforts.

Sustainable Products & Innovation

• EzCiclo recyclable thermosetting material
• CleaVER degradation solution
• Low-VOC vinyl ester resins
• Hyver resin
• Halogen-free flame-retardant resins
• Recyclable thermoplastic epoxy sheet

Awards & Recognition

• 2023 Happy Enterprise Gold Award
• JEC WORLD 2023 Innovation Award
• 2023 Taipei Cycle d&i Awards
• JEC Composites Innovation Awards 2023 (China)
• TCSA Corporate Sustainability Report Award