Climate Change Data

Rechi Precision Co., Ltd.

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Water Consumption:51.431 million liters (2022)
Waste Generated:357.2 tons (2022)

ESG Focus Areas

  • Environmental Protection
  • Occupational Safety and Health
  • Ethical Corporate Management
  • Sustainable Development
  • Corporate Governance

Environmental Achievements

  • Reduced waste by 11.4 tons compared to 2021 (357.2 tons in 2022 vs 368.6 tons in 2021)
  • Increased the recyclable ratio of product materials to more than 80%
  • Developed the third-generation environmentally friendly refrigerant compressor with lower GWP, increasing sales ratio by nearly 57%
  • Adopted 0.47 hectares of state-owned forest land and planted Formosan Sweet Gum to reduce carbon and increase oxygen

Social Achievements

  • Maintained harmonious labor-management relations
  • Total number of occupational accidents in 2022 was 1, excluding traffic accidents. Disabling Frequency Rate (F.R.) was 1.46.
  • Provided various employee benefits (salary, leave, insurance, transportation, accommodations, meals, activities, subsidies)
  • Conducted employee training (651 participants, 2,177 training hours in 2022)
  • Purchased pineapples from farmers to support them in 2021 (NT$210,000)
  • Bought cakes from a sheltered workshop to give to employees in 2022 (NT$66,348)

Governance Achievements

  • Established a Corporate Governance and Sustainable (ESG) Committee
  • Appointed a Corporate Governance Officer
  • Established an Audit Committee and a Remuneration Committee
  • Implemented the TCFD framework for climate-related risk disclosure
  • Formulated Ethical Corporate Management Best-Practice Principles and Procedures for Ethical Management and Guidelines for Conduct
  • Established a reporting system for unethical conduct

Climate Goals & Targets

Long-term Goals:
  • Achieve net-zero emissions
Medium-term Goals:
  • Grasp medium and long-term low-carbon business opportunities
  • Develop new customers and new fields
Short-term Goals:
  • Reduce paper consumption by 0.2% per year
  • Reduce water consumption by 2% per year
  • Reduce electricity consumption by 2% per year
  • Increase waste recycling rate by 5% per year

Environmental Challenges

  • Sluggish end demand in Europe and the U.S.
  • China's zero COVID-19 policy and lockdowns
  • Rising raw material prices
  • Intense price competition in the market
  • Shorter order cycles
Mitigation Strategies
  • Adjusted operational strategies to receive policy-based orders
  • Promoted inverter compressors to increase market share
  • Developed new miniaturized and low-cost products to cope with high copper prices and gradually replaced copper wire with aluminum wire
  • Focused on product competitiveness, response speed, and forward-looking development
  • Strengthened cost control and improved asset utilization efficiency
  • Accelerated the rationalization, automation, and intelligentization of production
  • Enhanced communication with customers to obtain timely order delivery information and advance planning to enhance internal production mechanisms

Supply Chain Management

Responsible Procurement
  • CSR Environmental Management Questionnaire for new suppliers covering health & safety and environmental issues
  • Encouraging suppliers to establish ISO 14001

Climate-Related Risks & Opportunities

Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 9001, ISO 14001, ISO 14064

Third-party Assurance: British Standards Institution (limited assurance)

Sustainable Products & Innovation

  • Third-generation environmentally friendly refrigerant compressor

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:8,651.66 tCO2e/year
Scope 1 Emissions:3,841.76 tCO2e/year
Scope 2 Emissions:4,809.90 tCO2e/year
Scope 3 Emissions:3,880.62 tCO2e/year
Renewable Energy Share:0%
Total Energy Consumption:35,051.87 GJ/year
Water Consumption:40,898,000 liters/year
Waste Generated:333.6 tons/year
Carbon Intensity:0.0005918 tCO2e/NT$ thousand (Scope 1), 0.000741 tCO2e/NT$ thousand (Scope 2)

ESG Focus Areas

  • Economy
  • Environment
  • People (including human rights)
  • Corporate Governance

Environmental Achievements

  • Reduced total Scope 1 and Scope 2 emissions by 8.3% from 2022 to 2023 (8,651.66 tCO2e in 2023)
  • Reduced water discharged by 4.279 million liters from 2022 to 2023
  • Saved 921,760 kWh of electricity in 2023 through energy-saving measures
  • Achieved ISO 50001 certification in 2023
  • Achieved ISO 14001 certification in 2023

Social Achievements

  • Held 4 labor-management meetings and 4 Welfare Committee meetings in 2023
  • Implemented an equal pay system with no discrimination based on gender, race, religion, etc.
  • Maintained a low employee turnover rate of 30% in 2023 (19% lower than 2022)
  • Provided various employee benefits including cash gifts, subsidies, insurance, and leave systems
  • Offered 4,203.5 hours of training to 703 employees in 2023 (average 13.55 hours per employee)

Governance Achievements

  • Established the Corporate Governance and Sustainable Development Committee
  • Held 8 Board of Directors meetings in 2023 with an 81.16% attendance rate
  • Implemented ethical corporate management principles and anti-corruption training
  • No major violations of laws and regulations in 2023
  • Implemented a comprehensive risk management system

Climate Goals & Targets

Long-term Goals:
  • Net-zero emissions by 2050
Medium-term Goals:
  • Achieve further reductions in GHG emissions
Short-term Goals:
  • Reduce energy consumption by more than 1% annually
  • Reduce waste by 3%
  • Reduce water discharge by 3%

Environmental Challenges

  • Global economic slowdown in 2023 due to inflation, regional conflicts, and supply chain disruptions
  • Sluggish terminal demand in European and American markets
  • Increasing raw material costs
  • Changes in customer behavior due to rising environmental awareness
  • Climate-related risks such as extreme weather events
Mitigation Strategies
  • Developed alternative sourcing strategies
  • Developed low-GWP products to meet new energy efficiency regulations
  • Implemented energy-saving measures to reduce electricity and gas consumption
  • Strengthened supply chain partnerships to secure raw materials
  • Implemented a comprehensive risk management system to address climate-related risks

Supply Chain Management

Supplier Audits: 78% response rate on ESG self-evaluation form in 2023

Responsible Procurement
  • Supplier code of conduct
  • ESG self-evaluation form
  • Compliance with RoHS and REACH regulations

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
Transition Risks
  • Increasing carbon prices
  • Changing customer behavior
  • Costs of low-carbon technology transition
  • Increasing raw material costs
Opportunities
  • Development of energy-efficient products
  • Participation in carbon market

Reporting Standards

Frameworks Used: GRI Universal Standards 2021, TCFD, SASB

Certifications: ISO 9001, ISO 14001, ISO 50001, ISO 14064-1, ISO 17025, ISO 45001 (planned for 2024)

Third-party Assurance: British Standards Institution (BSI)

UN Sustainable Development Goals

  • Goal 7 (Affordable and clean energy)
  • Goal 9 (Industry, innovation, and infrastructure)
  • Goal 13 (Climate action)

Initiatives contribute to these goals through energy-efficient products, sustainable supply chain practices, and GHG emission reduction efforts.

Sustainable Products & Innovation

  • Heat pump water heaters
  • Low-GWP refrigerant compressors

Awards & Recognition

  • Silver Medal from the Ministry of Education for donation to National Ilan University