Climate Change Data

Environmental Metrics

ESG Focus Areas

• Energy
• Waste
• Labor relations
• Occupational Safety and Health
• Training and education
• Non-discrimination
• Customer Health and Safety
• Customer Privacy
• Socio-Economic Laws and Regulations Compliance

Environmental Achievements

• Reduced energy consumption by 927,830 kWh and 3,340.19 GJ at Fujian Sunshine through equipment maintenance and Clean by Design program.
• Implemented various energy-saving measures including solar power generation, ground source systems, and LED lighting.

Social Achievements

• Maintained a harmonious labor relation with various communication interfaces and employee proposal improvement system.
• Provided diversified benefits to employees including group insurance and other measures.
• Donated NT$7,356,185 for social welfare and charities (Taiwan Headquarters).
• Supported education and environmental protection non-profit projects (Fujian Sunshine).
• Participated in community activities such as beach cleanups and student aid (various locations).

Governance Achievements

• Established the “Corporate Governance & Sustainable Development Committee” in 2019.
• Formulated the “Rules Governing Anti-Corruption” and “Ethical Corporate Management Best Practice Principal”.
• No violation of “Anti-Corruption / Commitment” occurred in 2021.
• No major information security/privacy leakage incident occurred in 2021.

Climate Goals & Targets

Environmental Challenges

• Severe impact of the COVID-19 pandemic and geopolitical risks.
• Challenges of supply chain, global transportation capacity, and raw material costs.
• Sharply rising inflation and disappearing consumption power.
• Climate change, rising energy prices, and global customers’ demand for environmentally sustainable products.

Mitigation Strategies

• Strict pandemic prevention measures implemented in each factory.
• Active response to challenges and uncertainties with timely decisions.
• Development of renewable energy and automation-oriented strategy.
• Good corporate governance, high product quality, considerate customer service, and sustainable ESG actions.

Supply Chain Management

Supplier Audits: Regular supplier evaluations and audits.

Responsible Procurement

• EU RoHS compliance
• Conflict minerals control policy
• Supplier Corporate Social Responsibility Self-Evaluation Form
• Supplier ethical operation commitment
• Green procurement thinking

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons, floods, droughts

Transition Risks

• Regulatory changes, market shifts, rising energy costs

Opportunities

• Development of energy-efficient products and renewable energy

Reporting Standards

Frameworks Used: GRI Standards (Core)

Certifications: GORE-TEX, SATRA, ISO 9001:2008, GB/T 19001-2000, Higg FEM, bluesign®

Sustainable Products & Innovation

• Development of lightweight and high-flexibility inserting material
• 3D knitted upper

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced carbon emissions by 3,532.39 CO2 through solar power generation (5,784.70 MWh), equivalent to afforestation of 106.18 hectares.
• Recycled 584 tons of rubber and 208 tons of EVA scraps.

Social Achievements

• Established the “Fulgent Sun Foundation” contributing NT$9,227,709 to social charity and public welfare.
• Provided 45,992.5 hours of education and training for 15,309 employees.

Governance Achievements

• Implemented ethical corporate management training for 94 persons (47 hours).
• Established a comprehensive internal control mechanism to prevent corruption.

Climate Goals & Targets

Environmental Challenges

• Impact of COVID-19 pandemic.
• Inflation, geopolitics, climate change, raw material price increases, and global demand for environmentally sustainable products.
• Difficulty recruiting outstanding talents due to geographical location.
• Climate-related risks (typhoons, floods, droughts, earthquakes).
• Transition risks (regulatory changes, market shifts, carbon border adjustment mechanism).

Mitigation Strategies

• Established strict pandemic prevention measures.
• Capacity expansion, new branding customers, equipment upgrades, automation.
• Good employee welfare mechanism.
• Insurance policies to mitigate natural disaster risks.
• Energy-saving and carbon-reduction projects (solar power, LED lighting).
• Development of low-carbon materials and products.
• Purchase of green power credits.

Supply Chain Management

Supplier Audits: 233 Tier 1 suppliers audited for labor code of conduct (15.13% coverage)

Responsible Procurement

• Conflict Minerals Control Policy
• Supplier ESG Questionnaire
• On-site audits
• Green procurement

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons
• Floods
• Droughts
• Earthquakes

Transition Risks

• Regulatory changes
• Market shifts
• Carbon Border Adjustment Mechanism (CBAM)

Opportunities

• Development of energy-efficient products
• Demand for sustainable/low-carbon products

Reporting Standards

Frameworks Used: GRI Standards (2021), SASB Apparel, Accessories, and Footwear Index, TCFD

Certifications: GORE-TEX, SATRA, ISO 9001, Higg FEM, Bluesign, IPE, GRS

Third-party Assurance: Not disclosed

Sustainable Products & Innovation

• Lightweight and highly flexible mid-insert materials
• 3D knitted shoe vamps

Awards & Recognition

• Third place in CommonWealth Magazine’s “The 2020-2022 Top 50 Operating Performance”
• One of Forbes’ 200 Asia-Pacific “Best Under A Billion” (2023)