Climate Change Data

Formosa Laboratories, Inc.

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:56,549.31 metric tons of CO2e
Scope 1 Emissions:8,421.52 metric tons of CO2e
Scope 2 Emissions:27,042.35 metric tons of CO2e
Scope 3 Emissions:21,085.44 metric tons of CO2e
Renewable Energy Share:0.43%
Total Energy Consumption:324,316,215 MJ
Water Consumption:427 megaliters
Waste Generated:1,616.16 metric tons
Carbon Intensity:8.17 metric tons of CO2e per NT$ million in revenue

ESG Focus Areas

  • Climate Change
  • Water Stewardship
  • Waste Management
  • Talent Attraction and Retention
  • Occupational Safety and Health
  • Supply Chain Management
  • Information Security
  • Social Participation

Environmental Achievements

  • Achieved a 44.02% waste recycling rate in 2023 (up 3.04% from the previous year).
  • Recycled 124.411 million liters of water, representing a 29.09% water recycling rate based on the amount of water withdrawn in 2023.
  • Completed Phase I construction of solar power generation facilities, generating 385,982 kWh of electricity.
  • Recorded an energy intensity of 337.76 MJ per kg of output (down 1.65% from the previous year).
  • Recorded a carbon intensity of 8.17 metric tons of CO2e per NT$ million in revenue (down 7.28% from the previous year).
  • Rolled out four carbon conservation and reduction programs, projected to save 613,774 kWh of electricity and reduce 303.204 metric tons of CO2e annually.
  • Received the Product Environmental Footprint Exemplary Manufacturer Award.

Social Achievements

  • Joined the “TALENT, in Taiwan” alliance, realizing three indicators: incentive rewards, physical and mental health, and talent growth.
  • Spent NT$1.82 million on training, with 4,886 participants.
  • Sponsored 19 local community activities (NT$267,000).
  • 89 people participated in blood donation drives (135 bags of blood).
  • Awarded NT$65,000 in scholarships to 54 employees' children.
  • Recorded a new hire rate of 28.82% and a turnover rate of 21.62%.

Governance Achievements

  • Board members received 66 hours of continuing education and training.
  • 537 raw material suppliers scored 90 points or higher (92.7% of total).

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality
  • Zero accident in manufacturing processes
  • Number of occupational accidents ≤ 5; FSI ≤ 1
Medium-term Goals:
  • Obtain ISAE 3410 Assurance Engagements on Greenhouse Gas Statement
  • Roll out greenhouse gas inventories at subsidiaries
  • Complete ISAE 3410 Assurance Engagements on Greenhouse Gas at subsidiaries
  • Bolster employees’ emergency response capabilities and improve firefighting facilities
  • Number of occupational accidents in 2025 ≤ 11; number in 2026 ≤ 8
Short-term Goals:
  • Reduce energy intensity by 1% to 3%
  • Roll out product carbon footprint and pass ISO 14067 verification
  • Zero serious workplace safety accidents
  • Number of occupational accidents ≤ 15

Environmental Challenges

  • Margin compression due to competition.
  • Government pressure to lower drug prices.
  • Higher costs for raw materials and production due to environmental protection trends.
  • Procurement from third parties by customers due to supply chain disruptions.
  • Destructive price wars from competitors.
  • Interest rate risk, exchange rate risk, customer contract non-performance risk, and tightened credit facilities risk.
  • Enactment of environmental laws and regulations.
  • Changes in labor conditions.
  • Water shortage or floods, typhoon damage, worker heat stroke, increased energy consumption, and temperature affecting wastewater plants.
  • Human rights and environmental risks among suppliers.
  • Legal and environmental safety risks among suppliers.
  • Occupational safety risks (disaster prevention, firefighting equipment compliance, accidents).
  • Information security and personal data risks.
Mitigation Strategies
  • Increased procurement volume and lower procurement price.
  • Project Management Department to control time and budget.
  • Procuring raw materials from lower-priced regions.
  • Identifying multiple supplier sources.
  • Negotiating with suppliers for lower prices.
  • Improving manufacturing processes to reduce costs.
  • Monitoring economic trends and interest rate changes.
  • Hedging measures for exchange rate risk.
  • Credit risk management analysis on customers.
  • Regularly reviewing relevant laws and regulations.
  • Implementing energy conservation and carbon reduction measures.
  • Water conservation measures and water recycling systems.
  • Spare parts mechanism and immediate repairs.
  • Multi-skilled worker mechanism.
  • Engaging with multiple material suppliers.
  • Regular ditch dredging.
  • Installing jacketed water recycling devices.
  • Improving the biological pool aeration system.
  • Implementing the ISO 45001 occupational safety and health management system.
  • Establishing the Information Security Section and appointing a manager.
  • Regular vulnerability scanning and protection system checks.

Supply Chain Management

Supplier Audits: 25 raw material suppliers (on-site), 3 raw material suppliers (written), 2 general affairs suppliers (on-site), 26 general affairs suppliers (written)

Responsible Procurement
  • Statement of Use of Hazardous Substances
  • Declaration of Non-Use of Conflict Minerals

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events (typhoons, floods)
  • Changes in precipitation patterns
  • Rising mean temperatures
Transition Risks
  • Renewable energy-related laws and regulations
  • Local carbon reduction laws and regulations
  • Overseas carbon reduction laws and regulations
  • Technology R&D in low-carbon products
Opportunities
  • Enhanced resource efficiency
  • Use of diverse energy sources
  • Product and service opportunities
  • Market opportunities
  • Enhanced resilience

Reporting Standards

Frameworks Used: GRI Standards (2021)

Certifications: ISO 14064-1, ISO 14067, ISO 45001

Third-party Assurance: AFNOR Asia Ltd., PwC Taiwan, SGS Taiwan Ltd.

Sustainable Products & Innovation

  • Sevelamer Carbonate “F.L.” (ISO 14067 verified)

Awards & Recognition

  • Product Environmental Footprint Exemplary Manufacturer Award