Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Environmental Protection
• Social Compliance
• Labor Practices
• Human Rights
• Integrity Management

Environmental Achievements

• Reduced energy intensity by 2.26% at Headquarters, 9.67% at Shenzhen Globe Union Enterprise, and 3.88% at Shandong Milim Plant.
• Reduced GHG emissions by 7.28% at Headquarters, 2.57% at Shenzhen Globe Union Enterprise (emission intensity decreased by 12.28%), and GHG emission intensity decreased by 4.3% at Shandong Milim Plant.
• Reduced electricity consumption by 6,534 kWh at Headquarters.
• Shenzhen Globe Union Enterprise's energy conservation measures reduced approximately 208.2 tons/CO2e of GHG emission.
• Shandong Milim Plant saved 1,800Tce of energy through waste heat recovery optimization.
• Reduced wastewater discharged by 7% at Shenzhen Globe Union Enterprise and 0.78% at Shandong Milim Plant.
• Shandong Milim Plant saved approximately 199,033 T/year of water usage.

Social Achievements

• More than 67.35% of management positions and above in Shenzhen Globe Union Enterprise are held by local residents.
• 87.5% of management positions and above in Shandong Milim Plant are held by local residents.
• Turnover rate decreased by 17.18% in Shenzhen Globe Union Enterprise and 4.31% in Shandong Milim Plant.
• Headquarters hired 4 physically and mentally challenged employees (3.1% of staff), exceeding the legal requirement of 1%.
• 100% of employees in Shenzhen Globe Union Enterprise are protected by a collective agreement.
• Proposal improvement rate of 91% through the trade union in Shandong Milim Plant (2,809 proposals submitted, 1,998 improved).

Governance Achievements

• Globe Union was ranked in the top 35% of 843 listed companies in the Third Corporate Governance Evaluation.
• Board of Directors approved the establishment of the Procedures for Ethical Management and Guidelines for Conduct.
• Added one more seat of independent director, exceeding legal requirements.
• No record of penalties in environmental protection, human rights, and social aspects, nor grievances or protests.

Climate Goals & Targets

Environmental Challenges

• Fluctuations in Euro, US dollar, and RMB exchange rates.
• Slow growth of physical distribution channels.
• Stringent environmental requirements in global markets.
• Rising local labor wages in China.

Mitigation Strategies

• Financial foreign exchange hedging and customer consultation to share exchange rate risk.
• Expansion of retail and wholesale channels in North America and network system penetration.
• Development of alternative materials and energy-saving products.
• Introduction of automated production and labor-saving measures.

Supply Chain Management

Supplier Audits: Shandong Milim Plant conducted assessments on all existing suppliers in 2016; Shenzhen Globe Union Enterprise planned to conduct supplier evaluation of its 20 major suppliers in 2017.

Responsible Procurement

• Environmental protection agreements with suppliers.
• Supplier questionnaires for new supplier selection.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Changes in environmental regulations.

Opportunities

• Development of energy-efficient products.

Reporting Standards

Frameworks Used: GRI G4 Core Option

Certifications: ISO 9001:2008, ISO 14001, OHSAS 18001, NSF, AB1953, EPA, DOE, CSA, IAPMO, WaterSense, UPC, WELS, WaterMark, AS

Third-party Assurance: Ernst & Young (limited assurance)

Sustainable Products & Innovation

• Water-saving faucets and toilets.
• Lead-free products.

Awards & Recognition

• Shandong Milim Plant awarded advanced unit for employment of persons with disabilities.

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Switched to natural gas boiler, lowering pollutant emissions
• Increased recycling rate of process water
• Use recycled water and 100% recyclable product packaging
• Implemented water saving devices
• Reduced paper consumption
• Improved energy consumption efficiency and recoverability rate

Social Achievements

• Established reasonable salary and compensation policies
• Provides employees with regular safety and health training
• Offers employees job rotation and cross-national opportunities
• Complies with labor laws and provides employee benefits

Governance Achievements

• Established a dedicated department for corporate social responsibility
• Reports regularly to the board of directors
• Obtained third-party assurance from Ernst & Young

Climate Goals & Targets

Environmental Challenges

• Attractiveness of traditional manufacturing for new talents has declined
• Potential risks and opportunities in climate change
• Supplier compliance with environmental protection, occupational health and safety, or labor and human rights regulations

Mitigation Strategies

• Improving work environment and gradual improvement of the degree of automation to reduce labor intensity
• Committing to energy conservation and carbon reduction activities
• Optimizing production models, improving production efficiency, and strictly abiding by the requirements of local laws and regulations
• Implementing supplier management policies (though not yet including specific regulatory compliance requirements in contracts)

Supply Chain Management

Responsible Procurement

• Supplier quality management rules (though without specific ESG requirements in contracts)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Third-party Assurance: Ernst & Young

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Environmental Sustainability
• Public Interests
• Employee Well-being
• Consumer Protection
• Supply Chain Responsibility
• Information Disclosure

Environmental Achievements

• Increased recycling rate of process water and wastewater
• Used recycled water and 100% recyclable product packaging
• Installed water-saving devices
• Implemented e-operations, reduced paper consumption, waste sorting, waste reduction and recycling
• Switched to a natural gas boiler, lowering pollutant emissions
• Improved wastewater treatment processes and increased recycling
• Implemented ISO14046 GHG Inventory System at Shandong Plant
• Gradually replacing lights to LED lights, uses heat recycling equipment, implementing office energy saving measures, and buying new energy efficient equipment

Social Achievements

• Established a Sexual Harassment Prevention and Complaints Committee
• Provided employees with regular safety and health training
• Established effective communication channels with employees (e-announcements, meetings)
• Implemented an annual HR Evaluation Committee for fair promotion opportunities
• Offered employees job rotation and international opportunities
• Provided OJT and Off-JT training
• Maintained excellent communication channels with customers and established procedures for handling complaints
• Donated NT$80 thousand to the Straits Economic & Cultural Interchange Association and NT$160 thousand to other organizations
• Chairman established the Hope Media Foundation and allocated approximately NT$19,082 thousand for charity events

Governance Achievements

• Defined Corporate Social Responsibility Principles
• Designated the Secretariat of the Board of Directors as the CSR unit, reporting regularly to the Board
• Established reasonable salary and compensation policies, and a clear system of rewards and penalties
• Disclosed relevant and reliable information regarding its corporate social responsibility on its website and the Market Observation Post System

Climate Goals & Targets

Environmental Challenges

• Lack of regular social responsibility training
• Absence of clauses in supplier contracts regarding CSR violations

Mitigation Strategies

• Planned to organize social responsibility training as necessary
• Planned to add relevant clauses to future supplier contracts

Supply Chain Management

Responsible Procurement

• Rules in place for managing supplier quality; attention paid to their record on environmental impact and social responsibility

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Switched to natural gas boiler, lowering pollutant emissions
• Increased recycling rate of process water
• Use recycled water and product packaging that is 100% recyclable
• Installed water saving devices on faucets
• Reduced paper consumption
• Improved energy consumption efficiency and the recoverability rate

Social Achievements

• Established reasonable salary and compensation policies
• Provides employees with regular safety and health training
• Offers employees job rotation and cross-national opportunities
• Provides various employee benefits (including remuneration, leave, and other benefits)
• Maintains excellent channels of communication with customers

Governance Achievements

• Established a dedicated department for fulfilling corporate social responsibilities, reporting regularly to the board of directors
• Defined Corporate Responsibility Principles
• Commissions Ernst & Young for third-party assurance of CSR reports

Climate Goals & Targets

Environmental Challenges

• Attractiveness of traditional manufacturing for new talents has declined
• Increasing concern toward climate change and stricter regulations
• Supplier compliance with environmental protection, occupational health and safety, or labor and human rights regulations

Mitigation Strategies

• Emphasis placed on improving the work environment and gradual improvement of the degree of automation
• Commitment to energy conservation and carbon reduction activities
• Optimizing production models, improving production efficiency, and strictly abiding by the requirements of local laws and regulations
• Adding regulatory compliance requirements for environmental protection, occupational safety and health, or labor and human rights in future supplier contracts

Supply Chain Management

Responsible Procurement

• Supplier quality rules; attention to supplier environmental impact and social responsibility

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, AA1000 (2008)

Certifications: ISO14064-1

Third-party Assurance: Ernst & Young

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Milim received Green Factory Certification from the Shandong Province Building Materials Industry.
• Expanded solar photovoltaic power use to 120,000 kWh.
• Upgraded kiln heat recovery system, recovering approximately 95,457 GJ.
• Achieved 88.93% wastewater recycling rate at Milim.
• Sanitary Vitreous China (VC) and faucet products received Water Sense certification.
• Launched patented non-plastic product packaging.

Social Achievements

• Adopted "DEI" (Diversity, Equity, and Inclusion) principles.
• Milim employees proposed over 4,000 ideas, 88% adopted for improvement.
• Regular emergency response drills conducted.
• Taiwan Headquarters held seven wellness seminars and "9934, i-sports" events.
• Milim held safety knowledge competitions.

Governance Achievements

• Established a Corporate Governance and Sustainable Development Committee.
• Initiated greenhouse gas inventory at Headquarters and Milim.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to extreme weather.
• Stricter environmental regulations.
• Shifting customer preferences towards low-carbon products.
• International carbon tariffs.
• Water shortages.
• Heat-related injuries among employees.

Mitigation Strategies

• Developing alternative sourcing strategies (CHINA+1 strategy).
• Investing in energy-efficient equipment and renewable energy.
• Developing low-carbon products.
• Monitoring international carbon-related regulations and adjusting products/pricing accordingly.
• Implementing water conservation measures and wastewater recycling.
• Installing additional workplace cooling systems and increasing scheduling flexibility.

Supply Chain Management

Supplier Audits: 100% of Milim's key suppliers signed environmental and anti-terrorism agreements.

Responsible Procurement

• Environmental protection agreements
• Anti-terrorism agreements
• ESG management system (planned for 2024)
• Code of conduct
• Supplier sustainability requirements
• C-TPAT security guidelines

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather (flooding)
• Water shortages
• Heat-related injuries
• Coastal inundation

Transition Risks

• International carbon tariffs
• Stricter environmental regulations
• Shifting customer preferences

Opportunities

• Demand for water-saving products
• Utilizing low-carbon energy sources
• Increased demand for sustainable products
• Improving energy efficiency
• Adopting efficient transportation methods
• Waste reuse and circular economy

Reporting Standards

Frameworks Used: GRI Universal Standards (2021), AA1000 Accountability Principles Standard, SASB Standards, TCFD

Certifications: ISO 14001, ISO 45001, TIPS Level A

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 8 (Decent Work and Economic Growth)
• Goal 17 (Partnerships for the Goals)

Initiatives contribute to these goals through energy efficiency, waste reduction, carbon emission reduction, employee well-being, and community engagement.

Sustainable Products & Innovation

• Water-saving products
• Low-flow toilets
• Cold start faucets
• Non-plastic packaging

Awards & Recognition

• Shandong Province Building Materials Industry Green Factory Certification (Milim)
• 1111 Job Bank Taiwan Silver Award for Happy Enterprise