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.

climate change management framework

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.

Climate change risk and opportunity matrix

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 TypeRelated topicspotential financial impactImpact time preventive solution
Policy and Regulatory RiskTotal GHG emission control, carbon fees, carbon
taxes, and carbon trading lead to increased costs
short term1. New factory building planning and renewable energy power generation equipment
2. Plan to purchase renewable energy certificates
International Net Zero Carbon Emissions
The cost of renewable energy construction and
low-carbon equipment purchase increases
medium term1. New factory building planning and renewable energy power generation equipment
2. Gradually replace old and energy-consuming machines
Impact on reputationThe impact of revenue reduction caused by
failure to meet customer needs
medium term1. Regularly publish sustainability reports to reveal the company’s sustainability direction
2. Actively participate in sustainability evaluations
Raw material supplyNew technology investmentmedium termApplication of recycled plastics and recyclable plastics technology
Changing customer needsCustomer requirements for environmental
friendliness in the production process
medium term1. Increase the proportion of renewable raw material production
2. Actively develop diverse customers
energy supplyNational energy transition policies or geopolitical
factors lead to energy shortages, production
interruptions, and rising electricity bills.
medium termIncrease the proportion of renewable energy in electricity consumption
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 term1. 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 riseThe usage time of cooling equipment increases,
and the consumption of refrigerant and electricity
long term1. Set the air conditioner at 28 degrees
2. Promote energy conservation and carbon reduction internally
Opportunity typeRelated topicspotential opportunitiesImpact time
resource efficiencyRecyclePackaging materials and water recyclingmedium term
energy sourceActively participate in the carbon trading market and government incentive policiesObtain additional carbon rights through the carbon trading market and government incentive policiesmedium term
Renewable Energy PlanBuild solar energy in advance, and put excess renewable energy into carbon trading or use it yourselfmedium term
technological innovationThe 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.)

YearScope 1 (tonCO2e)Scope 2 (tonCO2e)GHG emission intensity

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 areaTaiwan AreaVietnam factoryDongguan FactoryPhilippines factorytotal amount
Electricity intensityN/A32.3834.7531.7132.85
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 areaNumber of replacement
LED light sets (units)
Power saving (kWh)Amount of investment(NTD)
Vietnam factory10125,082.9117,190
Philippines factory78443,684.99134,184

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.

YearWater Consumption(m³)GHG Emission(tonCO2e)

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.

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