榮成紙業股份有限公司

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:683,180.66 tCO2e/year

Scope 1 Emissions:556,365.83 tCO2e/year

Scope 2 Emissions:49,693.36 tCO2e/year

Scope 3 Emissions:77,121.47 tCO2e/year

Renewable Energy Share:Not disclosed

Total Energy Consumption:5,797,693.33 GJ/year

Water Consumption:68,225.89 thousand tons/year (Low Carbon Papermaking)

Waste Generated:53,007.97 tons/year (Low Carbon Papermaking), 248.52 tons/year (Eco-packaging)

Carbon Intensity:0.63 tCO2e/metric ton of paper (Low Carbon Papermaking)

ESG Focus Areas

Governance
Environmental
Social

Environmental Achievements

Reduced carbon dioxide emissions by 18.5 million tons, equivalent to saving 53 million trees.
Achieved a 94.69% internal water recycling rate across Taiwan plants.
Used 3.36 million tons of recycled waste paper, exceeding 91% recycled fiber in each ton.
Reused water up to 26 times within the factory.
Achieved zero discharge of biosludge through patented technology.
Total installed capacity of photovoltaic modules was 212.16 kW, generating a cumulative renewable energy output of NTD 212.64 thousand kilowatt-hours.

Social Achievements

146 primary suppliers signed the Code of Conduct Compliance Declaration (93%).
Total donation of NTD 18,804 thousand.
All operational locations obtained Workplace Certification.
Received NTD 3.18 million in health education subsidies.
Initiated the renovation project for teacher dormitories at Minhe Junior High School.

Governance Achievements

Established a Chief Information Security Officer (CISO) position and implemented information security organization and management systems.
Shareholders' meeting electronic voting attendance rate of 58.21%.
Accumulated five ESG-linked loans totaling NTD 18.128 billion.

Climate Goals & Targets

Long-term Goals:

Net-zero carbon emissions by 2050.

Medium-term Goals:

Reduce greenhouse gas emissions by 11% in 2025 (baseline year 2018).
Waste paper recycling of 4.7 million tons in 2025.
Reduce carbon emissions by 19% by 2030 (baseline year 2018).

Short-term Goals:

Reduce greenhouse gas emissions by 2% in 2023 and by 6% in 2025 (baseline year 2018).
Waste paper recycling of 4.7 million tons in 2023 and 4.7 million tons in 2025.
Reduce GHG emissions by 7% by 2025 (baseline year 2018).

Environmental Challenges

COVID-19 pandemic restrictions in mainland China resulted in decreased production utilization rate and low-carbon paper sales.
Stricter environmental protection and emission and contamination standards affect the operational cost.
High financing cost.
Exchange rate risk.
Climate change related risks (e.g., stricter regulations, price increases, rising temperatures, insufficient power supply, increased electricity costs, transportation disruptions).

Mitigation Strategies

Investment of NTD 3.5 billion in automated and intelligent green packaging production lines and a SRF biomass energy boiler.
Promoting product transformation and upgrades to strengthen low-carbon paper competitiveness.
Continuous research and development of advanced technologies to exceed existing regulatory standards.
Comprehensive consideration of financing currency and structure, and fund-raising tools.
Strict monitoring of exchange rate changes and adequate adjustment of positions.
Implementation of energy-saving and carbon-reduction projects, improving raw material utilization efficiency, strengthening climate resilience, and implementing a sustainable circular economy.

Supply Chain Management

Supplier Audits: 153 suppliers audited in 2022

Responsible Procurement

Code of Conduct Compliance Declaration
Green procurement
ISO 14001 certification for suppliers

Climate-Related Risks & Opportunities

Physical Risks

Rising average temperature affecting processing equipment
Insufficient power supply
Increased electricity costs
Transportation disruptions due to extreme weather
Water temperature abnormalities affecting biological bacteria
Flooding risk due to subsidence
Drought affecting water supply
Fire risk due to drought

Transition Risks

Stricter environmental regulations
Increased carbon fees
Need for renewable energy equipment
Carbon tracking and verification requirements

Opportunities

Equipment automation
Use of renewable low-carbon energy
Participation in carbon trading market
Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards (Core Option), SASB (Pulp and Paper Manufacturing), TCFD

Certifications: ISO 9001, ISO 14001, ISO 14064-1, ISO 14064-2, ISO 45001, ISO 50001, FSC™ CoC

Third-party Assurance: BSI Taiwan

UN Sustainable Development Goals

Goal 1: No Poverty
Goal 2: Zero Hunger
Goal 4: Quality Education
Goal 5: Gender Equality
Goal 6: Clean Water and Sanitation
Goal 7: Affordable and Clean Energy
Goal 13: Climate Action

Longchen's initiatives contribute to these goals through various social and environmental programs (e.g., donations, scholarships, employee welfare, environmental protection measures).

Sustainable Products & Innovation

Low-carbon paper, eco-packaging

Awards & Recognition

Taiwan Sustainable Action Award (TSAA) Gold Award
TCSA Taiwan's Top 100 Sustainable Exemplary Companies Award
TCSA Enterprise Sustainability Report Gold Award
Overseas Chinese Business Association Best Corporate Climate Action Award
Taiwan Circular Economy Awards Special Award for Sustainable Categorization Standards
Environmental Protection Agency and Yunlin County Government Green Procurement Outstanding Enterprise Award

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:609,237.056 tCO2e/year

Scope 1 Emissions:493,591.4638 tCO2e/year

Scope 2 Emissions:39,560.3193 tCO2e/year

Scope 3 Emissions:76,085.2730 tCO2e/year

Renewable Energy Share:2.5%

Total Energy Consumption:5,072,699.97 GJ/year

Water Consumption:57,873.33 thousand tons/year (Low-carbon papermaking)

Waste Generated:52,103.26 tons/year (Low-carbon papermaking), 331.52 tons/year (Green packaging)

Carbon Intensity:0.64 tCO2e/ton of paper (Low-carbon papermaking)