FENC is issuing the 2023 Sustainability Report and Task Force on Climate-related Financial Disclosure (TCFD) Report, aligning with international trends on sustainability and climate-related disclosure with data quality, integrity and transparency.
The FENC Sustainability Report, which has received third-party assurance from SGS Taiwan, is prepared according to the 2021 version of GRI Standards with the TCFD framework and the index for the chemicals industry issued by the Sustainability Accounting Standards Board (SASB) as references. The TCFD Report is also prepared based on the recommended framework for climate-related disclosure with the IFRS S2 Climate-related Disclosures as the reference, keeping pace with international trends on climate governance.
The 2023 Sustainability Report features FENC’s ESG undertakings with three special reports. “Living Sustainably Through Circular Economy” details how FENC leveraged over 35 years of experience and pioneered recycling and remanufacturing technologies that tackle waste from the land, ocean and air, creating circular economy solutions that make full circularity an industry reality and green products part of daily living. “Reaching Zero Carbon Through Low-Carbon Transition” lays out FENC’s net-zero pathways and progress. By incorporating the five major low-carbon transition strategies, internal carbon pricing and green production, FENC is walking alongside the industry and value chain partners towards net zero. “Cultivating Circular Economy Through Environmental Education” demonstrates FENC’s dedication to environmental education, which is anchored to its core strengths. Teaming up with stakeholders, FENC is heightening environmental and recycling awareness to help the entire society embody the recycling mindset.
As of the end of 2023, FENC has issued more than 20 sustainable financial products, many of which are the first in Taiwan or Asia. Raising over NT$60 billion, FENC is devoting the entirety to sustainability initiatives. Being the only corporation in Taiwan with the qualification for issuing four types of sustainability bonds and the first to issue all four, FENC continues its role as the trailblazer in sustainable finance in Taiwan.
Green product revenues amounted to NT$47.7 billion at FENC in 2023, setting a record high. With the 3Rs, recycle, replace and reduce, at the core of green product development, many of FENC’s sustainable innovations have been recognized with major awards at the 2023 ISPO Textrends in Germany.
Climate issues are of vital importance to FENC. Having published its first TCFD Report last year, the Company identifies major climate-related risks and opportunities using extreme climate scenarios based on the TCFD framework. This year, FENC updated the scenarios and impacts of the risks and opportunities according to the latest scientific studies to advance action plans, mitigate climate impacts on corporate operation and seize potential business opportunities. By increasing energy efficiency and utilizing renewable energy, the 2023 GHG emissions of the production business dropped significantly, down by 25% from 2020, the base year. By adopting avoidance and recycling as its major strategies, FENC has realized environmental sustainability, delivering noticeable results in the reduction of energy consumption, water withdrawal, waste materials and air pollutants.
FENC values gender equality. The number of female managers at its locations in Taiwan has grown by 74% in the past ten years. With a comprehensive compensation system in place, the average regular salary offered at FENC sites in Taiwan is 46% higher than the market rate. To respond to changes in the international community and stay in line with corporate strategies, FENC has been focusing on the digital, international and sustainability capabilities for talent deployment, developing leadership teams and succession plans through a robust and strategic training blueprint and diverse learning resources.
When it comes to social engagement, FENC seeks within its core capabilities and offers “The Transformative Magic of Circularity,” the free environmental education program at schools in the vicinity of FENC production sites in Taiwan. As of the end of June 2024, a total of 75 sessions have been held, benefiting over 3,000 students. In Vietnam, FENC production sites collaborate with the local AEON Mall and host regular environmental festival campaigns, engaging the Vietnamese public through lectures, games and exhibition booths to help the participants acquire recycling mindsets and methods.
FENC’s performance in corporate sustainability has been repeatedly gaining wide recognition. In addition to receiving the National Sustainability Development Award in 2023, the Company is a constituent of a host of sustainability indices, including the MSCI ESG Leaders Indexes, FTSE4Good Emerging Indexes, Taiwan Corporate Governance 100 Index and FTSE4Good TIP Taiwan ESG Index. In terms of ESG ratings, FENC is evaluated as low risk in the Sustainalytics ESG Risk Ratings, ranking among the top 3% of the chemicals industry, and as CDP Management Level in Climate Change and Water Security Ratings. Once again, FENC is the recipient of the Taiwan Corporate Sustainability Awards (TCSA) Top 10 Taiwanese Companies Sustainability Model Award and Platinum for Corporate Sustainability Report Award in addition to six TCSA categories, including the Circular Economy Leadership Award, Growth Through Innovation Leadership Award, People Development Leadership Award, Climate Leadership Award, Information Security Leadership Award and Workplace Well-being Leadership Award. FENC also took home its third consecutive Best Companies to Work for in Asia Award from HR Asia, and for two years in a row, two first prizes from the Global Views Monthly ESG Award in the Manufacturing Industry and Low-carbon Operation categories.
FENC continues its visionary journey to transition towards net zero with pioneering mindsets and concerted efforts, fostering sustainability by developing low-carbon products and next-generation materials with the value chain while committing to inclusive development and environmental education out of the determination to expand its social influence. Working alongside its stakeholders, FENC is shaping a beautiful new century. In the future, FENC will continue to publish the Sustainability Report and TCFD Report as an annual practice to enhance stakeholder engagement, sustainability disclosure and data transparency.
Download the 2023 FENC Sustainability Report and TCFD Report at https://csr.fenc.com/report.aspx?lang=en
