Climate Change Data

Environmental Metrics

ESG Focus Areas

• Food Safety
• Environmental Sustainability
• Employee Well-being
• Supply Chain Responsibility

Environmental Achievements

• Reduced water consumption through improved wastewater treatment (quantified reduction not explicitly stated)
• Reprocessing of chicken feathers into feather powder for resource regeneration
• Recycling of wastewater and rainwater
• Zero discharge of sewage from livestock farms (in Taiwan)
• Pollution-free shrimp farming in Indonesia
• Participation in desert greening action in China
• Carbon footprint marking on food packaging in China

Social Achievements

• Obtained Food Safety Inspection Certification from the Ministry of Health and Welfare
• Joined the Food Safety Alliance
• Established Food Development Center to advance food production technology
• Improved flour mixing technique to meet high food safety standards
• Implemented employee welfare programs (details not quantified)
• Provided technical support to pork farmers
• Launched the Yummy Dots brand for lunar new year dishes and home meal replacements

Governance Achievements

• Established an Audit Committee
• Added 3 independent directors to strengthen corporate governance
• Formulated the "Rules Governing the Performance Evaluation of the Board of Directors"
• Formulated "measures for the evaluation of the independence and competency of CPAs"
• Established a "Company Wide Occupational Safety and Health Committee"

Climate Goals & Targets

Environmental Challenges

• Violent fluctuations in business operation due to COVID-19, Brexit, trade wars, and African swine fever
• Supply chain disruptions due to COVID-19 and global logistics issues
• Fierce competition in the Taiwan market due to free trade agreements
• Concerns about drug residue, avian flu, and food safety
• High raw material prices (soybeans, corn)
• Manpower aging in the egg farming industry
• Negative attitudes from local residents towards chicken farming

Mitigation Strategies

• Strict quality control and focus on customer health
• Vertical integration to reduce costs and ensure quality
• R&D efforts in biotechnology, animal nutrition, and waste treatment
• Global procurement to reduce material prices
• Investment in new food processing plant and egg washing plant
• Development of antibiotic-free products
• Technical support and assistance to farmers
• Promotion of traceable poultry, chicken, processed food, and eggs
• Diversification of feed business to reduce risk
• Strengthening the role in the supply chain and expanding to more industries

Supply Chain Management

Responsible Procurement

• Supplier evaluation survey
• Code of ethics in contracts with main suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Changes in global raw material prices
• Changes in global logistics

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI

Certifications: HACCP, ISO22000, TAF

Sustainable Products & Innovation

• Chicken liver powder (liquid) for pets
• Probiotics for livestock and aquatic products
• High-fiber fermentation raw materials
• Improved fermented protein

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Supply Chain Management
• Labor and Social Relations
• Product Quality and Safety
• Environmental Safety

Environmental Achievements

• Reduced energy consumption through energy-saving transportation methods and return-truck scheduling for domestic transportation.
• Properly treated wastewater and waste in compliance with government regulations.
• Implemented water pollution control measures and obtained permits for direct discharge of treated wastewater.

Social Achievements

• Established DaChan Culture and Education Foundation, providing scholarships for elementary and high school students.
• Maintained a 100% employee participation rate in the Employee Welfare Committee.
• Provided various employee benefits, including group insurance, food allowance, and subsidies for recreational activities.

Governance Achievements

• Established an Audit Committee composed of independent directors.
• Established a Remuneration Committee to oversee the remuneration system for directors and managers.
• Implemented ethical corporate management policies and guidelines to prevent fraud and bribery.

Climate Goals & Targets

Environmental Challenges

• Rising prices of commodity grain.
• Supply chain disruptions due to extreme weather events.
• Non-compliance with environmental, labor, and fair trade regulations resulting in fines.

Mitigation Strategies

• Added relevant insurance items to cope with losses caused by natural disasters.
• Implemented energy-saving and carbon-reducing transportation methods.
• Improved internal control systems and conducted regular internal audits to address non-compliance issues.

Supply Chain Management

Supplier Audits: 53 feed suppliers (16%), 20 meat suppliers (9%), 48 food suppliers (39%) audited in 2022.

Responsible Procurement

• Principle of "Food Safety and Traceability"
• Purchase from qualified suppliers with legal business operations.
• Regular and unscheduled on-site inspections of suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (floods, droughts)
• Supply chain disruptions

Transition Risks

• Greenhouse gas cap control and carbon tax
• Changes in consumer demand
• Uncertainty in energy-saving and carbon reduction technologies
• New renewable energy regulations

Opportunities

• R&D and innovation of low-carbon products and services (e.g., plant-based meat)

Reporting Standards

Frameworks Used: GRI Standards (2021 edition), GRI G4 Food Processing Sector Disclosures

Certifications: ISO 22000, CAS, HACCP, FSSC 22000, TAF, TFDA

Third-party Assurance: KPMG

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Plant-based meat

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Product safety
• Environmental protection
• Social inclusion
• Corporate governance

Environmental Achievements

• Achieved more than NTD 5 million in green procurement and received the Tainan Green Procurement Enterprise Award in 2023.
• Organized the first "Sustainable Environment - Ocean Sustainability - DaChan Beach Cleanup," collecting 212 kilograms of marine debris.

Social Achievements

• Launched "Holy Chicken," Taiwan's first large-scale, antibiotic-free chicken.
• Launched Taiwan's first raw food-grade eggs in collaboration with Showa Sangyo.
• MI HON MI SAN won the "National Quality Yushan Award - Best Popular Brand."
• Zhong Yi Food Company Limited won two three-star ratings in the Food Innovation Award for "zero energy consumption and zero waste farming" and "first Taiwanese-Japanese technology integration of the highest quality raw food-grade eggs," as well as the Grand Jury Award.

Governance Achievements

• Established the ESG Division in June 2023 to formulate sustainable development strategies and goals.
• Conducted annual performance evaluations of the Board of Directors, directors, the Audit Committee, and the Remuneration Committee.
• Total training hours for Board of Directors was 66 in 2023 (average of five hours per person).

Climate Goals & Targets

Environmental Challenges

• Operational challenges, raw material procurement difficulties, interest rate fluctuations, and exchange rate hedging due to de-globalization, geopolitical conflicts, and international confrontations.

Mitigation Strategies

• Increased relevant insurance items and insured amounts to reduce losses from natural disasters.
• Diversified raw material sourcing (soybeans and corn) from countries like Brazil, Argentina, and India to mitigate supply chain risks.
• Developed AI farming technology to control livestock house environment and optimize animal husbandry.

Supply Chain Management

Supplier Audits: 59 feed, 26 meat, 67 food, 3 egg suppliers audited in 2023.

Responsible Procurement

• Prioritizes purchases from suppliers with ISO 22000, ISO 9001, and HACCP certifications.
• Sourcing of RSPO-certified palm oil (11.95% in 2023)
• Procurement of FSC-certified paper (1.21% in 2023)
• Purchase of U.S. SSAP-certified soybeans (35.12% in 2023)

Climate-Related Risks & Opportunities

Physical Risks

• Transportation interruption, cargo loss
• Employee attendance affected
• Impact on raw material supply and prices
• High temperatures increase energy consumption

Transition Risks

• Increased cost of carbon reduction
• Internal carbon pricing
• Export carbon tax

Opportunities

• Reduce transportation costs

Reporting Standards

Frameworks Used: GRI Standards (GRI Universal Standards 2021), SASB Standards, TCFD recommendations

Certifications: ISO 14064-1:2018, ISO 22000, HACCP, CAS, FSSC 22000, TAP

Third-party Assurance: KPMG

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Holy Chicken
• Raw food-grade eggs
• Plant-based meat

Awards & Recognition

• Tainan Green Procurement Enterprise Award
• Yushan Award (MI HON MI SAN)
• Food Innovation Award (Zhong Yi Food Company Limited)