ESG
Environmental Sustainability
Task Force on Climate-Related Financial Disclosures
In order to fully grasp the impact of climate change on Taihan Technology, the TCFD framework will be adopted from 2022 to identify risks and opportunities. And assess the possible financial impact, and then formulate a response plan based on the identification results.
In recent years, the operational impacts caused by climate change have increased rapidly and are full of high uncertainties. Therefore, Taihan Technology uses the TCFD method to identify 8 major risks during its operations, evaluate and manage them to reduce the financial impact on the company.
The operational impact of climate change has grown dramatically in recent years and is fraught with a high degree of uncertainty. Therefore, Taihan Technology uses the TCFD method to identify five major risks in the operation process, evaluate and manage them to reduce the financial impact on the company.
| Risk Type | Related topics | potential financial impact | Impact time | preventive solution |
|---|---|---|---|---|
| Transition risk | Policy and Regulatory Risk | Total GHG emission control, carbon fees, carbon taxes, and carbon trading lead to increased costs | short term | 1. New factory building planning and renewable energy power generation equipment 2. Plan to purchase renewable energy certificates |
| International Net Zero Carbon Emissions Trends | The cost of renewable energy construction and low-carbon equipment purchase increases | medium term | 1. New factory building planning and renewable energy power generation equipment 2. Gradually replace old and energy-consuming machines |
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| Impact on reputation | The impact of revenue reduction caused by failure to meet customer needs | medium term | 1. Regularly publish sustainability reports to reveal the company’s sustainability direction 2. Actively participate in sustainability evaluations |
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| Raw material supply | New technology investment | medium term | Application of recycled plastics and recyclable plastics technology | |
| Changing customer needs | Customer requirements for environmental friendliness in the production process | medium term | 1. Increase the proportion of renewable raw material production 2. Actively develop diverse customers |
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| energy supply | National energy transition policies or geopolitical factors lead to energy shortages, production interruptions, and rising electricity bills. | medium term | Increase the proportion of renewable energy in electricity consumption | |
| Physical risk | Extreme weather leading to increased severity of heavy rains, floods or droughts | The number of extreme weather days is increasing, and the chances of flooding and water shortages are increasing, leading to shutdowns, production reductions and equipment damage. | long term | 1. Improve factory water efficiency 2. Check whether the factory area is a high-risk area for drought or flooding at any time |
| Average temperatures continue to rise | The usage time of cooling equipment increases, and the consumption of refrigerant and electricity increases. | long term | 1. Set the air conditioner at 28 degrees 2. Promote energy conservation and carbon reduction internally |
| Opportunity type | Related topics | potential opportunities | Impact time |
|---|---|---|---|
| resource efficiency | Recycle | Packaging materials and water recycling | medium term |
| energy source | Actively participate in the carbon trading market and government incentive policies | Obtain additional carbon rights through the carbon trading market and government incentive policies | medium term |
| Renewable Energy Plan | Build solar energy in advance, and put excess renewable energy into carbon trading or use it yourself | medium term | |
| technological innovation | The energy consumption and pollutants generated per unit of product production are reduced, and the overall production cost is reduced. | long term |
Greenhouse gas management
Greenhouse gases are the main cause of global climate anomalies, in order to slow down the damage to the environment and respond to the expectations of stakeholders. Starting from 2022, Taihan Technology will independently conduct greenhouse gas inventories. To grasp the basis for greenhouse gas emissions and reduction. Although it is not subject to regulatory controls at this stage and requires inventory and reduction controls, it is voluntary to conduct inventory of greenhouse gas emissions. (In 2022, the greenhouse gas inventory of all factory areas has been completed for the first time, and the scope 1 and 2 emissions are summarized and disclosed in the table below. Therefore, there is a big difference from the figures in 2021, which only disclosed the Taiwan area.)
| Year | Scope 1 (tonCO2e) | Scope 2 (tonCO2e) | GHG emission intensity |
|---|---|---|---|
| 2021 | 15.328 | 32.955 | 0.00758 |
| 2022 | 782.760 | 16,494.418 | 6.460 |
Energy management
In 2022, Taihan Technology’s electricity use was all non-renewable energy, using a total of 24,361.98 kilowatt-hours of electricity. The overall electricity consumption intensity was 32.85GJ/million output value. The main energy use was production machinery and office electricity. Taihan Technology is committed to saving energy. Specific measures include replacing high-energy-consuming lamps, machinery, and air-conditioning systems. At the same time, we also actively promote policies and methods to save electricity to our colleagues. If you leave the office for a long time, please turn off the power of office equipment (computer host, screen, light or other electrical equipment, etc.) to implement environmental protection. Energy saving and carbon reduction concept.
| Factory area | Taiwan Area | Vietnam factory | Dongguan Factory | Philippines factory | total amount |
|---|---|---|---|---|---|
| Electricity(GJ) | 158.27 | 47,567.04 | 9,372.20 | 30,605.60 | 87,703.12 |
| Electricity intensity | N/A | 32.38 | 34.75 | 31.71 | 32.85 |
| Note 1: Electricity consumption intensity = electricity consumption (GJ)/million revenue | |||||
Energy saving effect
Taihan Technology consumes the most electricity during its production process, so it has always attached great importance to issues related to energy conservation. Through the formulation of energy-saving plans every year and tracking their implementation every quarter, we achieve the set energy-saving goals. In 2022, a total of 885 lamps were replaced with energy-saving LED lamp sets, saving 68,767.90 kWh of electricity. Since the Dongguan factory was moved to a new factory in 2022, the equipment was all newly purchased, so it was not included in this statistics. We will continue to review whether there are energy-saving opportunities in the factory.
| Factory area | Number of replacement LED light sets (units) | Power saving (kWh) | Amount of investment(NTD) |
|---|---|---|---|
| Vietnam factory | 101 | 25,082.91 | 17,190 |
| Philippines factory | 784 | 43,684.99 | 134,184 |
| total | 885 | 68,767.90 | 151,374 |
Water resource management
Taihan Technology Headquarters only has water for people’s livelihood, and all wastewater is discharged to legal sanitary sewers for wastewater treatment, which will not pose a threat to the ecology of the river basin or natural water bodies. At the same time, the water consumption is relatively small to the total local water intake, and will not cause pressure on local water use. The following data only include water consumption in Taiwan, excluding overseas factories.
| Year | Water Consumption(m³) | GHG Emission(tonCO2e) |
|---|---|---|
| 2021 | 1,134 | 0.172 |
| 2022 | 65,030 | 10.470 |
Waste Substance Management
Although the company belongs to the mold and plastic molding industry, it has no production operations in Taiwan and the following data does not include overseas factories. Otherwise, The waste in the office is shared with the employees of the leased building, so it is difficult to distinguish, and the waste generated is only a small amount of waste generated by the daily operations of the employees.Therefore, the company does not disclose the total amount of waste. The company still continues to promote garbage classification and reduce the use of disposable plastics, so as to increase the proportion of recycling and reuse, and reduce the generation of waste.
Environmental Sustainability Goals
Taihan Technology will officially promote sustainable management to all factories in 2022, and use this as a benchmark to set subsequent reduction targets. The short-term goal of reducing water intake and electricity consumption in the entire factory is 1% per year. And set long-term goals of reducing electricity consumption by 8% and water withdrawal by 8% by 2030 compared with 2022. At the same time, we continue to strengthen the classification and reduction of waste in the factory to reduce the company’s environmental pollution. In 2022, old lamps have been replaced, reducing a total of 68,767.9 kilowatt hours of electricity (approximately 35,002.8 tons of carbon emissions). Taihan Technology’s subsequent strategies to respond to climate change and greenhouse gas management include: switching factory street lights to solar street lights, planning to purchase renewable energy certificates, and gradually replacing old and high-energy-consuming machines, etc., and actively cooperate with end customers to reduce energy consumption. Carbon policies include continuous carbon reduction through the use of materials.