Climate Change Data

禾昌興業股份有限公司

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:16,937 tCO2e/year (2022, unaudited)
Scope 1 Emissions:590 tCO2e/year (2022, unaudited)
Scope 2 Emissions:16,347 tCO2e/year (2022, unaudited)
Water Consumption:130,760 m3/year (2022)
Waste Generated:295.4 tons/year (2022)
Carbon Intensity:299 tCO2e/million NTD (2022)

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Reduced carbon emissions by 1% in 2024 (target), aiming for 2% reduction by 2025 (target). Implemented various energy-saving measures such as turning off lights during lunch breaks, maintaining air conditioning at 26 degrees Celsius, promoting paperless offices, and installing water-saving valves on faucets.
  • Achieved ISO-14001 environmental management system certification.

Social Achievements

  • Maintained harmonious labor-management relations with no major labor disputes.
  • Provided various employee welfare measures, including employee compensation, performance bonuses, wedding/funeral allowances, group insurance, employee stock ownership trusts, and free employee lunches. Women comprised 42.35% of the workforce and 23.27% of management in 2022.

Climate Goals & Targets

Long-term Goals:
  • Net-zero emissions by 2050 (aspirational)
Medium-term Goals:
  • Achieve carbon emission reduction targets of 1% in 2024 and 2% in 2025 (relative to 2022).
Short-term Goals:
  • Reduce water consumption by 10% by 2025 (target)

Environmental Challenges

  • Market demand was conservative due to global inflation and rising interest rates, and supply chains continued to destock.
  • Supply chain disruptions due to extreme weather events (e.g., Australian bushfires, droughts, and heavy rainfall).
  • Rising raw material prices increasing product costs.
  • Intense competition in the consumer electronics market leading to price pressure.
  • Rising labor costs in mainland China.
Mitigation Strategies
  • Cost control measures were implemented, resulting in increased gross profit margin.
  • Developed alternative sourcing strategies.
  • Reviewed product cost structures and specifications, optimized raw material usage, and adjusted product prices to reflect cost increases.
  • Focused on key component integration with end customers to secure stable market share and profit.
  • Implemented automation to replace manual assembly, provided incentives to improve worker efficiency, and outsourced low-value-added products or workstations.

Supply Chain Management

Supplier Audits: Annual audits conducted on qualified suppliers, categorized by risk level (A, B, C).

Responsible Procurement
  • Use of qualified suppliers with a minimum of two suppliers for each key component (unless specified by the customer).
  • Suppliers sign a restricted substance commitment letter.

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events (e.g., droughts, floods)
Transition Risks
  • Regulatory changes (e.g., carbon taxes)
  • Market shifts (e.g., consumer demand for low-carbon products)
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: ISO 14001, OHSAS 18001, IATF16949, ISO 9001:2015

Sustainable Products & Innovation

  • Development of energy-efficient products