Climate Change Data

Loyalty Founder Enterprise Co., Ltd.

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

ESG Focus Areas

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

Environmental Achievements

  • Completed ISO14064-1 greenhouse gas inventories on December 31, 2023.
  • Established and maintained a comprehensive system of environmental management (ISO14001, RBA system and OHSAS18001)
  • Actively promoting the reuse of eco-friendly and renewable materials and fully introduced the requirements that all products must be eco-friendly and meet the RoHS of the EU and customers.

Social Achievements

  • Women accounted for an average of 52% of employees in 2023, and the average percentage of female executives among senior executives was 55%.
  • Held a fire drill on July 14, 2023, and a health checkup was conducted on October 6, 2023.
  • Established an Employee Welfare Committee responsible for employee benefits.

Governance Achievements

  • Established the Sustainable Development Committee in June 2023.
  • Established the “Regulations for Evaluation of the Performance of the Board of Directors” and conducted a regular evaluation of the performance of the Board of Directors.
  • Established the “Procedures for Ethical Management and Guidelines for Conduct”.

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions (implied, through commitment to science-based reduction path)
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Rising material and labor costs worldwide resulting in declining profits.
  • Major brand manufacturers demanding faster and more comprehensive delivery services.
  • Global economic slowdown in 2023, coupled with weaker business environment and high inflation.
Mitigation Strategies
  • Enhance process improvement.
  • Adjust the number of weeks of material inventories based on the development of the product life cycle.
  • Strengthen capabilities in market assessment and development.
  • Adopt a solid and conservative approach for foreign exchange management.
  • Strengthen production management to reduce manufacturing and quality costs.

Supply Chain Management

Responsible Procurement
  • Strict environmental compliance extending to the supply chain sources of our materials.
  • Suppliers must be certified as qualified before conducting any transaction and must continue to be evaluated regularly for compliance with relevant EICC requirements.

Climate-Related Risks & Opportunities

Physical Risks
  • Increased severity and frequency of extreme weather events
Transition Risks
  • Increased energy costs
  • Increased carbon reduction equipment construction costs
  • Decreased revenue due to the transfer of customers
  • Transition to low-emission technology resulting in increased low-carbon technology transformation costs
  • Supply chain pressure from carbon tax
  • Competition pressure from carbon tax
Opportunities
  • Reduced paper usage
  • Development of low carbon products and services
  • Service process adjustments such as paperless workflow
  • Enhanced corporate image and market capitalization

Reporting Standards

Frameworks Used: IFRS

Certifications: ISO 9001, ISO 14001, OHSAS 18001, ISO 14064

Third-party Assurance: Deloitte Taiwan