Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions by an unspecified amount through the use of renewable energy (solar panels) at the Luzhu gypsum board plant, resulting in a claimed forestation equivalent of 225 hectares.
• Recycled 3,210 tons of gypsum board.

Social Achievements

• Provided employee training totaling 4,192 hours.
• Minimum starting salary 1.3 times the legal minimum wage.
• Average employee training hours: 10 hours.
• Customer satisfaction ratings averaged above 90 points.

Governance Achievements

• Established a remuneration committee and an audit committee.
• Implemented a code of ethics and principles of integrity.

Climate Goals & Targets

Environmental Challenges

• Two violations of environmental regulations (water and air pollution).

Mitigation Strategies

• Installed additional equipment and enhanced training to address environmental violations.

Supply Chain Management

Supplier Audits: 25 audits/year (8% of suppliers)

Responsible Procurement

• Requires suppliers to sign a commitment letter adhering to company's integrity clause, confidentiality clause, human rights policy, and principles of integrity.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 9001, ISO 9002, UL, CNS, ASTM, JIS, Green Building Material Label

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Gypsum board (green building material)

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Management
• Water Resource Management
• Pollution Prevention
• Waste Management
• Employee Well-being
• Occupational Health and Safety
• Supply Chain Management
• Corporate Governance

Environmental Achievements

• Reduced water consumption by 7.1% compared to 2020.
• Achieved 99.84% waste recycling rate in cement plants, 98.89% in concrete plants, and 92.63% in gypsum board plants.
• 12% of 2021 product sales were for projects with sustainable building or related construction certifications.
• Gypsum board production uses desulfurization and natural gypsum, avoiding asbestos, formaldehyde, and volatile organic compounds.

Social Achievements

• Average employee training hours: 10.8 hours.
• Zero occupational accidents in 2021.
• NT$ 840,000 in social contributions.
• Customer satisfaction rating above 90 points across all business units.

Governance Achievements

• Established a remuneration committee and an audit committee.
• Implemented a code of ethics and a code of conduct.
• 100% of suppliers passed audits.

Climate Goals & Targets

Environmental Challenges

• Seven violations of environmental regulations in 2021.
• Climate change related risks (extreme weather, water scarcity).
• Transition risks (regulatory changes, market shifts).

Mitigation Strategies

• Implemented measures to address environmental violations (new equipment, training).
• Developed business continuity plans to mitigate extreme weather impacts.
• Investing in renewable energy and energy efficiency.
• Developing low-carbon technologies and products.

Supply Chain Management

Supplier Audits: 52 audits in 2021 (10% of suppliers, 100% pass rate)

Responsible Procurement

• Supplier Code of Conduct
• Local sourcing (97% of total procurement).

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons, floods, droughts
• Sea level rise

Transition Risks

• Carbon taxes
• Regulatory changes
• Market shifts towards low-carbon products

Opportunities

• Development of energy-efficient products
• Expansion of renewable energy business
• Waste-to-resource opportunities

Reporting Standards

Frameworks Used: GRI Standards, SASB

Certifications: ISO 9001, ISO 9002, UL, LEED

Third-party Assurance: 秉承聯合會計師事務所 (Limited Assurance)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Green concrete
• Gypsum board (recycled materials)

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced air pollution by recycling process wastewater for road sprinkling
• Scrappage of old diesel cars in accordance with Environmental Protection Administration

Social Achievements

• Maintained a 19.10% female employment rate and 6.57% female supervisor rate in 2022
• Conformed to government regulations on labor health and safety, formulating corresponding measures, holding training courses, offering protective equipment, and making annual environmental inspection by external units and re-inspection by the fire department.

Governance Achievements

• Established a Chief Information Security Officer (CISO) and a dedicated information security team
• Established a Cyber Security Management Committee

Climate Goals & Targets

Environmental Challenges

• Rising tension between the US and China
• Rising electricity expense increases the production costs
• Dumping of low-priced gypsum boards
• Operating costs of keep factors such as sand and gravel, transportation, and wages are rising year by year
• Challenging to obtain synthetic gypsum, major raw material, domestically due to government's energy policy

Mitigation Strategies

• Manufacture with efficient in off-peak hours for lower electricity expenses, increase the usage of cheaper coal, keep up with raw material cost fluctuations, and implement cost management.
• Actively implement cost management to ensure market competitive advantages.
• Encourage employees to develop diverse skill, and perform job rotations in a timely and appropriate manner to deploy human resources flexibly.

Supply Chain Management

Responsible Procurement

• local procurement of main materials

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, SASB’s Construction Materials

Certifications: ISO 14001

Third-party Assurance: Legendary & Steadfast Accountancy

Sustainable Products & Innovation

• various innovative performance building materials
• new type of pressure sensor

Environmental Metrics

ESG Focus Areas

• Company operations and ethical management
• Product quality and customer satisfaction
• Regulatory compliance
• Operational and financial performance
• Sustainable strategy and practice
• Energy consumption and management
• Greenhouse gas emissions
• Employee compensation and benefits
• Workplace health and safety

Environmental Achievements

• Prioritize the adoption of high-efficiency energy-saving products.
• Promote and implement energy-saving, carbon reduction, and environmental protection measures.
• Regularly inspect and eliminate outdated equipment to reduce energy burden.
• All suppliers meet the requirements of the ISO quality management system for qualified suppliers.
• Local sourcing of raw materials: The company's local procurement accounts for 97% of the total procurement amount.

Social Achievements

• In 2023, the total amount of social welfare donations reached NT$ 3.29 million.
• In 2023, continued investment in R&D expenditure rose to NT$ 72.62 million.

Governance Achievements

• Executing Business Continuity Planning: Continuously adopt optimized inventory and flexible transportation scheduling, maintain stable operations to support the public construction demand.
• Suppliers sign Corporate Social Responsibility Commitment: A total of 67 suppliers have signed the commitment, partnering with The company to fulfill our responsibility for sustainable development of the business and the society.

Climate Goals & Targets

Environmental Challenges

• Extreme weather causing prolonged heavy rainfall may result in concentrated customer demand, heightened challenges in production and transportation scheduling. This could lead to order losses and necessitate improving production management efficiency.
• Continued rise in average temperatures due to extreme climate conditions could escalate electricity demand and lead to increased electricity prices. This might result in elevated electricity costs for the company, need to enhance energy usage efficiency.
• Government impose a carbon fee on the company in 2025 could result in increased regulatory expenses.
• Government's push for a 2050 net zero emissions policy might require the company to seek alternative energy sources to replace traditional ones, or to explore alternative fuels to replace coal.

Mitigation Strategies

• Strengthen operational resilience.
• Business Continuity Planning: Continue to optimize inventory and flexible transportation scheduling. Maintain stable operations to support public construction needs.
• Monitor water regime information and formulate water shortage countermeasures through real-time information from the Water Resources Department.
• Advocate and implement energy saving and carbon reduction environmental protection measures.
• Prioritize the use of high-efficiency and energy-saving products.
• Conduct periodic inspections and dispose old equipment to reduce energy burden.
• Enhance energy usage efficiency: Annually invest 1% of revenue for process equipment improvement.
• Seeking alternative energy for replacing traditional energy: Achieve 100% green electricity usage before 2050.
• Seeking alternative fuel for replacing fire coal: Achieve 100% to replace fire coal before 2050.

Supply Chain Management

Supplier Audits: 67 suppliers signed the commitment letter

Responsible Procurement

• Require suppliers to sign a letter of commitment to "expect to abide by the company's integrity clause, confidentiality clause, human rights policy and integrity management policy"
• Require suppliers to comply to governmental regulations
• Establish a raw material management system, regularly collect information, and evaluate their sources
• Signing of the “Commitment Letter of Supplier Corporate Social Responsibility”: total of 67 suppliers signed the letter.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather causing prolonged heavy rainfall
• Continued rise in average temperatures
• Droughts
• Rising global temperature
• Rising sea level

Transition Risks

• GHG emission control and carbon tax
• Renewable energy development policies
• Trend of low carbon emission/low environmental impact technologies
• Environmental-friendly green products R&D and customer needs
• The increase of carbon tax and the cost of raw materials for importing countries

Opportunities

• Join carbon emission trading
• Opportunities to plan for renewable energy adoption
• Opportunities to expand new energy business
• Obtain renewable energy certificates
• Install renewable energy facilities
• Opportunities of innovation
• Waste to recycled resources
• Develop new green products
• Optimize circular economy and the competitiveness of green building materials
• Actively expand customer service of UCCTW gypsum board recycling system, collaboratively respond to product reuse and recycle
• Opportunity to develop substitutes of raw materials
• Motivation to develop and optimize product ratio
• Opportunities to move towards low carbon economy and corporate sustainable development
• Invest, fundraise, and finance

Reporting Standards

Frameworks Used: GRI, SASB

Third-party Assurance: Legendary & Steadfast Accountancy(LSA)

Sustainable Products & Innovation

• Gypsum Boards
• Ready-Mixed Concrete