Climate Change Data

KENMEC MECHANICAL ENGINEERING CO., LTD.

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:1775.38 tCO2e (2023)
Scope 1 Emissions:912.9326 tCO2e
Scope 3 Emissions:862.4481 tCO2e
Carbon Intensity:0.64 metric tons/million yuan (2023)

ESG Focus Areas

  • Environmental Protection
  • Social Responsibility
  • Corporate Governance

Environmental Achievements

  • Installed solar power system and smart power saving control system
  • Implemented energy saving and carbon reduction measures
  • Product lightweighting to reduce product weight
  • Greening the supply chain by collaborating with suppliers to select environmentally friendly products
  • Efficient use of resources by improving design and production processes
  • Adoption of energy-saving and efficient production and transportation equipment

Social Achievements

  • Established an Employee Welfare Committee
  • Provided various employee benefits (health insurance, labor insurance, pension, etc.)
  • Organized employee activities (trips, parties, dinners)
  • Allocated 5%-15% of profits as employee remuneration
  • Provided safety and health education to employees
  • Implemented sexual harassment prevention and control measures

Governance Achievements

  • Established a dedicated corporate governance unit
  • Established a Remuneration Committee and an Audit Committee
  • Implemented Board of Directors’ self-evaluation
  • Regularly reviewed and modified the prevention program for unethical conduct
  • Established reporting and reward systems for integrity violations
  • Implemented measures for protecting whistleblowers

Climate Goals & Targets

Long-term Goals:
  • Continue to focus on smart logistics automation equipment, third-generation semiconductor equipment, room temperature and cold chain smart logistics systems, smart logistics, data center/server room cooling and heat transfer solutions
Medium-term Goals:
  • Form a team combining Taiwan’s Grade A operators in the construction, plumbing and air conditioning industries to provide turnkey and smart manufacturing integration solution services in Southeast Asia and other markets
Short-term Goals:
  • Seek automated smart factory opportunities in companies that have returned to Taiwan
  • Strengthen the promotion and sales of Southeast Asian business
  • Focus on expansion in China, Japan and Europe

Environmental Challenges

  • Fluctuations in prices of raw materials and labor
  • Changes in political and economic situations in China
  • Global supply chain disruptions
  • Oversupply in the solar industry
  • US ban on products from Xinjiang region
  • US investigation into circumvention of anti-dumping duties
Mitigation Strategies
  • Accelerated the establishment of diversified cross-country and cross-region production bases
  • Introduced digital manufacturing and cross-region digital platforms
  • Strengthened promotion and sales of Southeast Asian business
  • Focused on expansion in China, Japan, and Europe
  • Established long-term strategic partnerships with customers
  • Established in-depth strategic cooperation with specific customers to jointly develop and produce customized products
  • Actively negotiated with suppliers or signed long-term contracts

Supply Chain Management

Responsible Procurement
  • Formulated “Supplier Management Rules” with regulations related to environmental protection, intellectual property rights and integrity provisions

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: Regulations Governing the Preparation of Financial Reports by Securities Issuers

Certifications: ISO 9001

Third-party Assurance: Deloitte & Touche Taiwan

Sustainable Products & Innovation

  • Solar power systems
  • Energy-efficient products

Awards & Recognition

  • 22nd Public Construction Golden Quality Award
  • Third prize in the Outstanding Engineering category of the 24th Golden Road Award
  • Asian Service Award