Climate Change Data

Nankang Rubber Tire Corp., Ltd.

Climate Impact & Sustainability Data (2021, 2022)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:55,849.89 tCO2e/year (2021)
Scope 1 Emissions:13,208.82 tCO2e/year (2021)
Scope 2 Emissions:27,641.73 tCO2e/year (2021)
Renewable Energy Share:20% (target for 2030)
Total Energy Consumption:21,166,800 kWh reduction (2021)
Water Consumption:92,621 m3/year (2021)
Waste Generated:2,340.34 tons/year (2021)
Carbon Intensity:0.8753 tCO2e per unit of product (2020), 1.193 tCO2e per unit of product (2021)

ESG Focus Areas

  • Environmental protection
  • Occupational safety and health
  • Employee well-being
  • Sustainable development
  • Corporate governance
  • Human rights

Environmental Achievements

  • Reduced greenhouse gas emissions by 25.86% compared to 2020
  • Reduced waste output by 18% compared to 2020
  • Reduced paper use by 42 boxes compared to the previous year
  • Installed provincial faucets to reduce water consumption
  • Erected solar photovoltaic equipment on the roof of Xinfeng Factory (2MWh) with a second phase under construction (5MWh)
  • Introduced a natural gas boiler in 2018, gradually replacing the oil-fired boiler

Social Achievements

  • Established a Labor Retirement Reserve Supervision Committee
  • Signed a group agreement with the Nankang Tire Enterprise Trade Union
  • Implemented various employee welfare measures (including annual payments, travel subsidies, employee children's stipends, etc.)
  • Provided annual health checks for employees
  • Held foreign employee care seminars
  • Provided childcare and childcare allowance

Governance Achievements

  • Established an Audit Committee in 2019
  • Established an ESG Committee in 2020
  • Established the "Occupational Safety and Health Committee"
  • Implemented the ISO14001/IS045001 management system since 2011
  • Formulated and published the "Code of Practice for Integrity Management" and "Code of Ethical Conduct"
  • Established a whistle-blowing and reward system

Climate Goals & Targets

Long-term Goals:
  • Achieve net zero carbon emissions and 100% renewable energy use by 2050
Medium-term Goals:
  • Achieve zero carbon emissions in office locations by 2030
  • Achieve 20% renewable energy in production plants by 2030
Short-term Goals:
  • Reduce electricity consumption by 10% per year (2022-2025)
  • Complete the second phase of solar photovoltaic equipment construction in 2022 (5MWh)

Environmental Challenges

  • Revenue decline due to the impact of the COVID-19 pandemic
  • High tax rates caused by anti-dumping and countervailing duty
  • Rising prices of raw materials (artificial rubber and natural rubber)
  • High sea freight and transportation costs
  • Stringent environmental protection regulations
  • Impact of extreme climate events (rainstorms, droughts, typhoons)
Mitigation Strategies
  • Adjusting production capacity and reducing fixed expenses
  • Actively developing new markets and customer sources
  • Adjusting sales markets and accelerating the development of electric vehicle tires and other high-value products
  • Transferring freight rates and high raw material costs to clients
  • Deep integration of production and sales departments
  • Strict control of procurement costs
  • Actively deploying physical and network marketing channels
  • Focusing on high value-added products and low-end and medium-priced car tires
  • Developing alternative sourcing strategies for raw materials
  • Implementing electricity conservation and clean energy use
  • Strengthening financial risk control (forward foreign exchange trading, product liability insurance, pre-ordering raw materials)

Supply Chain Management

Supplier Audits: 12 suppliers audited in 2021

Responsible Procurement
  • Supplier code of conduct covering health and safety, labor rights, environment, ethics, and management systems
  • Requirement for ISO14001 and ISO45001 certifications

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events (rainstorms, droughts, typhoons)
Transition Risks
  • Regulatory changes, market shifts (e.g., US anti-dumping investigation)
Opportunities
  • Development of energy-efficient products (e.g., eco TIRE)

Reporting Standards

Frameworks Used: GRI Standards Core Option (2016), AA1000AS v3 Standards

Certifications: ISO 14001, ISO 45001, ISO 9001, TÜV SÜD Mark tire certification

Third-party Assurance: BSI British Standards Institute (medium assurance level)

Sustainable Products & Innovation

  • Eco-TIRE

Awards & Recognition

  • 2013 Taiwan Excellence Award
  • 2016 Taipei International Auto Parts Exhibition Silver Medal Award for Innovative Products

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:39,580.9 tCO2e/year (Scope 1 & 2)
Scope 1 Emissions:12,718.43 tCO2e/year
Scope 2 Emissions:26,862.48 tCO2e/year
Scope 3 Emissions:8,533.38 tCO2e/year
Renewable Energy Share:20% (target for production plant by 2030)
Total Energy Consumption:Not disclosed
Water Consumption:119,103 m3/year
Waste Generated:2,232.72 tons/year
Carbon Intensity:0.81 tCO2e per unit product (2022)

ESG Focus Areas

  • Environmental Protection
  • Occupational Safety and Health
  • Sustainable Development
  • Human Rights
  • Corporate Governance

Environmental Achievements

  • Reduced GHG emissions by 3,451.85 metric tons of CO2e compared to FY2021.
  • Reduced water consumption from 152,569 to 119,103 cubic meters.
  • Reduced waste by 5% compared to FY2021.
  • Installed 2MWh of solar photovoltaic equipment on the roof of Xinfeng Factory, with a further 5MWh under construction.
  • Introduced a natural gas boiler in 2018, gradually replacing the oil-fired boiler.

Social Achievements

  • Maintained harmonious labor-management relations.
  • Implemented various employee welfare measures (including remuneration, leave, and other benefits).
  • Conducted various health promotion activities.
  • Provided annual health check-ups for employees.
  • Implemented career development training programs for employees (127 people, 508 hours).

Governance Achievements

  • Established an ESG Committee in 2020.
  • Implemented the “Board Performance Evaluation Measures” in 2020.
  • Established an Audit Committee in 2019.
  • Established a Remuneration Committee in 2012.
  • Implemented a whistleblowing and reward system.

Climate Goals & Targets

Long-term Goals:
  • Achieve net zero carbon emissions and 100% renewable energy use for the whole company by 2050.
Medium-term Goals:
  • Achieve zero carbon emissions in the office base by 2030.
  • Achieve 20% renewable energy use in the production plant by 2030.
Short-term Goals:
  • Reduce electricity consumption by 5% per year (2022-2025).
  • Gradually replace energy-intensive equipment with energy-saving and efficient products.

Environmental Challenges

  • Rising raw material costs and exchange rate impacts.
  • Stringent environmental protection regulations.
  • High tax rates caused by anti-dumping and anti-subsidy measures.
  • Impact of the COVID-19 pandemic on tire demand.
  • Extreme climate events impacting supply chains and operations.
Mitigation Strategies
  • Added high value-added products (four-season and snow tires in Europe, special modified specifications in Asia, electric tires).
  • Adjusted regional customer layer structure and increased the number of image stores.
  • Strengthened the export market.
  • Improved manufacturing processes and reduced scrap rates.
  • Strengthened financial risk control (forward foreign exchange trading, product liability insurance, pre-purchase of raw materials).
  • Strengthened internal control management and reduced costs.
  • Evaluated cooperation between setting up overseas factories or foundries outside Taiwan and the mainland.
  • Increased green energy use.

Supply Chain Management

Supplier Audits: 12/year (2022)

Responsible Procurement
  • Supplier code of conduct covering health and safety, labor human rights, environment, ethics, and management systems.
  • Requirement for ISO14001 and ISO45001 certifications.

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events (rainstorms, droughts, typhoons).
Transition Risks
  • Regulatory changes, carbon taxes, energy shortages.
Opportunities
  • Development of energy-efficient products (electric vehicle tires).

Reporting Standards

Frameworks Used: GRI Standards Core Option (2016), AA1000AS v3

Certifications: ISO 14001, ISO 45001, TÜV SÜD Mark tire certification

Third-party Assurance: BSI British Standards Institution (medium assurance)

UN Sustainable Development Goals

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

Initiatives contribute to these goals through energy efficiency improvements, waste reduction, sustainable product development, and greenhouse gas emission reduction.

Sustainable Products & Innovation

  • Electric vehicle tires
  • ECO-2+ energy-saving tires

Awards & Recognition

  • 2013 Taiwan Excellence Award
  • 2016 Taipei International Auto Parts Show Silver Medal Award for Innovative Products