Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Management
• Water Management
• Waste Management
• Human Rights
• Employee Well-being
• Corporate Governance
• Supply Chain Management
• Community Investment

Environmental Achievements

• Upgraded wastewater treatment, reducing COD by 20-40mg/L
• Transformed water heating system in living quarters, lowering electricity consumption
• Installed a heat recovery system, reducing energy consumption
• Obtained carbon footprint and water footprint certificates
• Increased use of recycled yarn

Social Achievements

• Maintained harmonious labor-management relations with no labor disputes requiring mediation
• Provided various employee benefits (insurance, leave, catering, transport, entertainment, etc.)
• Conducted regular health examinations for employees
• Implemented training programs for both new and in-service employees (totaling 27,000+ hours in 2021)
• Engaged in community investment activities (donations, student assistance, disaster relief, etc.)

Governance Achievements

• Established and periodically reviewed internal control systems
• Implemented a robust audit committee and compensation committee
• Complied with relevant laws and regulations
• Maintained transparent communication with stakeholders

Climate Goals & Targets

Environmental Challenges

• Rising energy consumption due to increased revenue
• Managing waste generation from increased production

Mitigation Strategies

• Implementing energy-saving measures
• Improving waste management practices
• Investing in renewable energy (PV power generation)

Supply Chain Management

Supplier Audits: 105 suppliers in 2020, 115 in 2021

Responsible Procurement

• ISO 9001 certified suppliers prioritized
• Annual OEKO-TEX Standard 100 certification for environmental protection suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO 50001, Oeko-Tex Standard 100, GRS 4.0, Carbon Neutral, Product Carbon Footprint, Product Water Footprint

Third-party Assurance: SGS

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 10 (Reduced Inequalities)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 5 (Gender Equality)
• Goal 17 (Partnerships for the Goals)

Paiho Shih's initiatives contribute to these goals through various ESG programs and activities.

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Environmental Stewardship
• Social Engagement

Environmental Achievements

• Reduced CO2 emission by approximately 22,298.23 metric tons through energy-saving and emission reduction programs.
• Achieved 12.7% renewable energy share across three plants through solar power generation.
• Increased water recycling rate to 39.6%, saving approximately 223,554 m³ of water.
• Recycled a total of 3,468.58 tons of waste in 2022, with a recycling rate of 84%.

Social Achievements

• Provided 203 educational training programs for employees, covering technology, laws and regulations, professional knowledge, and management.
• Implemented the Unlawful Assault Prevention Program with 2,514 participants.
• Achieved 93.2% customer satisfaction rate.
• Invested approximately RMB 803,320 in social participation activities.

Governance Achievements

• Established ESG Committee and five major groups to promote and implement various ESG issues.
• Implemented SR10 social responsibility management system across three factories.
• Maintained legal compliance with no fines or penalties in 2022.
• Established internal and external reporting channels and investigation procedures for ethical concerns.

Climate Goals & Targets

Environmental Challenges

• Decreased overall market demand for traditional auxiliary materials due to increased raw material prices and interest rate hikes.
• Supply chain disruptions due to macroeconomic turbulence, geopolitical risks, and unpredictable climatic conditions.
• Increased water consumption due to increased orders of waterproof fabrics.

Mitigation Strategies

• Developed alternative sourcing strategies for raw materials.
• Implemented water conservation measures and increased water recycling equipment.
• Invested in new energy transformation and purchased high-quality green raw materials.

Supply Chain Management

Supplier Audits: 91/year

Responsible Procurement

• Supplier evaluation considering social responsibility, environmental stewardship, and business ethics.
• Requirement for suppliers to sign Prohibition of Hazardous Substances Warranty and REACH SVHC Declaration.
• Implementation of anti-corruption and anti-bribery initiatives.

Climate-Related Risks & Opportunities

Physical Risks

• Severe water shortage
• Supply chain disruption due to severe water shortage

Transition Risks

• Increased demand for carbon disclosure
• Greenhouse gas related laws and regulations, carbon tax and carbon trading system
• Research and investment in green energy-saving products

Opportunities

• Energy-efficient supply chain
• Use of Renewable Energy
• New product development and innovation
• Carbon Footprint and Water Footprint Assessment of Products

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO 50001, ISO 14064, GRS 4.0, OEKO-TEX

Third-party Assurance: SGS (AA1000AS Type 1 moderate-level assurance)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

Initiatives contribute to these goals through renewable energy use, job creation, sustainable product development, waste reduction, and carbon emission reduction.

Sustainable Products & Innovation

• PLA environmental-friendly materials
• Moisture-transferring and air-permeable webbing
• Flame-retardant biodegradable touch fastener

Awards & Recognition

• First carbon footprint certification and zero-carbon neutral certification in China's textile industry (CQC)

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Climate Change
• Supply Chain Sustainability
• Human Rights
• Employee Well-being
• Community Engagement

Environmental Achievements

• Achieved carbon neutrality across all factory sites in 2023.
• Reduced Scope 1+2 absolute carbon emissions by 43.8% compared to the previous year.
• Achieved 0 landfill waste with a 91% recycling rate.
• Renewable energy share reached approximately 39.4%.

Social Achievements

• Increased the proportion of women in management positions to 44.1%.
• Implemented SR10 social responsibility management system across three factories.
• Provided 736 training courses for employees, with an average training time of 30.5 hours per employee.
• Invested NT$3,067,024 in social participation.

Governance Achievements

• Established an anti-corruption training program for all employees.
• Implemented a robust internal control system with no major deficiencies in 2023.
• Established internal and external whistleblowing channels.

Climate Goals & Targets

Environmental Challenges

• Global political and economic instability.
• Strengthening global supply chain resilience.
• Addressing climate change and achieving net-zero carbon emissions.
• Supply chain disruptions due to climate events (water scarcity).

Mitigation Strategies

• Joined the SBTi Science Based Targets initiative.
• Implemented greenhouse gas inventory and product carbon footprint management systems.
• Developed alternative sourcing strategies.
• Established a water monitoring mechanism and implemented water-saving measures.
• Increased renewable energy usage and water recycling.

Supply Chain Management

Supplier Audits: 525/year

Responsible Procurement

• Code of conduct
• Supplier sustainability requirements
• Local sourcing

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Water scarcity

Transition Risks

• Carbon regulations
• Market shifts towards green products

Opportunities

• Development of energy-efficient products
• Renewable energy adoption

Reporting Standards

Frameworks Used: GRI Standards, SASB, TCFD, AA1000

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO 50001, ISO 14064-1, OEKO-TEX® STANDARD 100, GRS, Bluesign®

Third-party Assurance: SGS (GRI Standards and AA1000 Type 1 moderate assurance level)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

Paiho Shih's initiatives contribute to these goals through renewable energy adoption, sustainable supply chain practices, employee well-being programs, and community engagement.

Sustainable Products & Innovation

• Eco-friendly yarns
• Biodegradable materials
• Recycled materials

Awards & Recognition

• China's first batch of zero-carbon factories (Wuxi and Dongguan factories)