Approaches and Performance on Key Issues

Everlight Chemical recognizes the importance of natural resource conservation and sustainable development. To fulfill our responsibility as global citizens and support environmental initiatives, we implement our environmental management system by international standards. We focus on providing relevant training, making process improvements, achieving industrial waste reduction and developing eco-friendly technologies to deliver on our environmental commitments.
Management System and Framework

To strengthen corporate governance and sustainability performance, we hold quarterly annual policy review meetings and annual environment management meetings, implementing the PDCA (Plan-Do-Check-Act) cycle to drive progress in environmental management.

Sustainable Development Goals (SDGs)

According to the material topics we have identified and our overall development strategy, we have selected the following sustainable development goals (SDGs) which we believe we can address in a meaningful way. Our approach to and performance on achieving these goals are illustrated below:

Water Pollution Prevention

Our Focus

UN SDGs

6.4 Increase water-use efficiency across all sectors

Measures

– Increase water-recycling measures
– Conduct water use surveys
– Enhance wastewater treatment capacity
– Regularly inspect water quality of treated wastewater
– Incentivize proposals and measures for improvements

Air Pollution Prevention

Our Focus

UN SDGs

12.5 Substantially reduce waste generation through prevention, reduction, recycling, and reuse

Measures

– Use clean fuels
– Install more pollution prevention equipment
– Strengthen maintenance of pollution prevention equipment
– Incentivize proposals and measures for improvements

Waste Management

Our Focus

UN SDGs

12.5 Substantially reduce waste generation through prevention, reduction, recycling, and reuse

Measures

– Reuse and recycle more waste
– Classify and reduce waste at the source
– Properly dispose of and track waste
– Incentivize proposals and measures for improvements

Resource Utilization

Our Focus

UN SDGs

12.5 Substantially reduce waste generation through prevention, reduction, recycling, and reuse

Measures

– Continuously renew product selection
– Continuously improve our manufacturing processes
– Conduct a survey to understand our atom efficiency
– Incentivize proposals and measures for improvements

GHG Inventory and Energy Use

Our Focus

UN SDGs

7.3 Improve global energy efficiency

13.3 Improve education, awareness-raising, and human and institutional capacity on climate change mitigation, adaptation, impact reduction and early warning

Measures

– Improve manufacturing processes and equipment
– Introduce innovative management techniques
– Promote GHG reduction projects
– Evaluate GHG reduction goals

Everlight Chemical aligns its environment, health and safety (EHS) practices with international standards by implementing the ISO 14001 environmental management system. All four Everlight plants in Taiwan, Trend Tone Imaging and Everlight Suzhou have all obtained the ISO 14001 certification.

Frequency of Environmental Management Meetings

➤ Environment management meetings are held annually.

➤ Annual policy review meetings are held quarterly to improve our performance on environmental management using the PDCA methodology.

Environmental Management Process

Factories regularly hold EHS policy review meetings, implementing the PDCA (Plan-Do-Check-Act) cycle to review and improve performance on different environmental goals. Our environmental management process includes the following steps.

Scope of Environmental Management System Certification

Main Certificate for Everlight Chemical
ISO14001-2015

Certified on: 1996/7/26
Valid through: 2022/11/21

Everlight Plant I-IV (Taiwan)
Everlight Suzhou (China)

Certified on: 2019/11/21
Valid through: 2022/11/21

Trend Tone Imaging
(Taiwan)

Certified on: 2020/7/29
Valid through: 2022/7/17

Environmental Costs

In 2021, Everlight Chemical incurred a total environmental cost of NT$346.3 million, equivalent to 3.7% of the Company’s total output value. Water pollution management measures accounted for the largest share of our environmental expenses. The measures were implemented to comply with wastewater treatment regulations at each of our production sites.

Water Resource Management
Policy & Commitment

Everlight understands the importance of water conservation. We strive to increase our water recycling rate (R2) and wastewater treatment capacity to reduce related environmental impacts.

Governance Body

➤ Environmental Management Committee

➤ Environmental management teams and dedicated environmental protection units at production sites

Management Approach

➤ Water withdrawal: increase water recycling measures and conduct water use surveys

➤ Water discharge: enhance wastewater treatment capacity and regularly inspect water quality of treated wastewater

➤ Regularly assess risk of water stress at each production site

Key Performance Indicators (KPI)

➤ Water withdrawal: total water withdrawal (megaliter) = sum of water volume from all withdrawal/consumption activities (tap water, underground water, and industrial water use)

➤ Water discharge: wastewater treatment compliance rate (%) = [amount of water discharged within regulatory limits / total amount of water discharge] x 100%

➤ Water recycling: water recycling rate (R2) (%) = [total amount of water reused / (total water withdrawal + total amount of water reused)] x 100%

Evaluation Mechanism

➤ Annual review on environment management (1 time/year)

➤ ESG Committee meetings (2 times/year)

➤ Factory-level policy review (1 time/quarter)

➤ Internal audit on our environment management system (1 time/year)

➤ External audit (by DNV.GL) on our environmental management system (1 time/year)

Air Pollution Management
Policy & Commitment

Everlight is committed to protecting the air quality in the peripheral areas of our production sites. We continue to adopt the best available technology to reduce emission of air pollution.

Governance Body

➤ Environmental Management Committee

➤ Environmental management teams and dedicated environmental protection units at production sites

Management Approach

We adopt the following measures to maintain air quality:

➤ Adoption of clean fuel

➤ Further installation of pollution control equipment

➤ Improving availability of air pollution control equipment

Key Performance Indicator (KPI)

➤ Emission reduction rate per unit of production (%): [1-((Total air pollution emissions (kg)/production volume (ton))/benchmark (1.93))] x 100

Evaluation Mechanism

➤ Annual review on environment management (1 time/year)

➤ ESG Committee meetings (2 times/year)

➤ Factory-level policy review (1 time/quarter)

➤ Internal audit on our environment management system (1 time/year)

➤ External audit (by DNV.GL) on our environmental management system (1 time/year)

Performance on Pollution Management (Water and Air Pollution)

Referencing GRI Standards, SASB Standards, global industry practices, sustainability trends and the UN Sustainable Development Goals (SDGs), Everlight has set the following environmental performance targets and indicators.

Item Performance Indicator 2021(Actual) 2021(Target) Short-Term Target(2022) Medium-Term Target(2025) Long-Term Target(2030)
Water Pollution Management
Water recycling rate (R2) (%) 86 ≧83 ≧83 ≧84 ≧86
Wastewater treatment compliance rate (%) 100 100 100 100 100
Total water withdrawal (megaliter) 824.5 ≦872 ≦872 ≦872 ≦872
Air Pollution Management
Emissions reduction rate per unit of production (%) 6 ≧5 ≧5 ≧5 ≧6

Note: Everlight’s subsidiaries were included in the calculation starting from 2021. This, combined with increased production capacity, resulted in the increase in total water withdrawal

Compliance with Environmental Laws and Regulations

Environmental Violations: There were no violations in 2021.

Progress of Remediation Efforts for Soil and Groundwater Contamination Sites

➤ On December 9, 2016, Everlight Plant III was listed as a “Soil and Groundwater Contamination Site Requiring Remediation.” On January 16, 2020 , the Taoyuan Government approved our remediation proposal. The annual budget for this remediation project is NT$30 million. The project is expected to be completed by June 2025.

➤ In 2021, construction of remediation wells in the entire area was completed per schedule, and removal and treatment of pollutants began. Progress has been in line with designated targets. At the same time, a sewage collection tank was installed at the plant to prevent leakage and pollution.

➤ In 2022, the company continues to carry out improvement projects according to plan. These include launching a sewage collection system and renovating the drains at the production site.

Circular Economy

Everlight Chemical has been promoting circular economy practices for years. Implemented measures include:

  • Circulate and utilize reusable materials
  • Adopt circularity measures in production processes and develop innovative technology to create added value
  • Cut waste at the source and form the shortest recycling loops with external parties
  • Put waste recycling in practice to improve resource efficiency
Waste Management

Industrial waste is mainly handled in three ways: internal processing (where heat steam is collected for further use); returning or selling back waste to suppliers for further use; or outsourcing to an external third party for recycling, incineration or landfilling.

Waste Composition and Waste Reduction Efforts in Recent Years
Everlight’s Overall Waste Recycling Rate Reached 69% in 2021
Everlight Chemical has been promoting circular economy practices over the years. We also focus on reducing waste at the source, raising waste recycling rate and improving resource efficiency to further cut waste generation.
Policy & Commitment

Everlight is committed to preserving natural resources. We actively promote waste reduction and recycling practices.

Governance Body

➤ Environmental Management Committee

➤ Environmental management teams and dedicated environmental protection units at production sites

Management Approach

We adopt the following waste management measures:

➤ Increase waste recycling and reuse

➤ Sort and reduce waste at the source

➤ Properly handle and track waste

Key Performance Indicator (KPI)

➤ Waste recycling and reuse rate (%): [amount of industrial waste recycled or reused / total amount of industrial waste generated] × 100%

➤ Proper treatment of hazardous industrial waste (%): [amount of properly handled hazardous industrial waste/ (total amount of hazardous industrial waste – Temporary storage)] × 100%

➤ The recycling and treatment rate of hazardous industrial waste: [amount of hazardous industrial waste collected and treated / the total amount of hazardous industrial waste generated] × 100%.

Evaluation Mechanism

➤ Annual review on environment management (1 time/year)

➤ ESG Committee meetings (2 times/year)

➤ Factory-level policy review (1 time/quarter)

➤ Internal audit on our environment management system (1 time/year)

➤ External audit (by DNV.GL) on our environmental management system (1 time/year)

➤ Evaluation of waste cleaning/management vendors (1 time/year)

Greenhouse Gas (GHG) Emissions

Everlight Chemical places great emphasis on GHG management. In 2021, we established a Climate Change Working Group. Besides assessing climate-related risks and opportunities according to guidelines of the Task Force on Climate-related Financial Disclosures (TCFD), we also continue to set GHG reduction targets and measures for the short, medium and long term. Starting from 2022, we have introduced science-based and quantitative methods to manage GHG issues. Furthermore, we proactively adopt various energy management systems and innovative equipment to promote carbon reduction and energy conservation.

Everlight Chemical has been promoting circular economy practices over the years. We focus on reducing waste at the source, raising waste recycling rate and improving resource efficiency to further cut waste generation.
Policy & Commitment

We continue to track international trends on climate change and place great emphasis on GHG emissions reduction. Through robust energy consumption management, equipment upgrade and other energy conservation measures, we seek to maximize energy efficiency and in turn reduce GHG emissions.

Governance Body

➤ Environmental Management Committee

➤ Environmental management teams and dedicated environmental protection units at production sites

Management Approach

We adopt the following measures to manage and reduce GHG emissions:

➤ Upgrade manufacturing processes and equipment

➤ Adopt innovative management methods

➤ Conduct GHG emissions inventory according to ISO 14064-1 or regulatory standards

➤ Continue to implement GHG reduction measures

Based on our GHG inventory in 2021 and data from the past four years, Everlight Group’s total annual emissions were 82,813 tons of carbon dioxide equivalent (tCO2e) in 2021,23.1% of which was Scope 1 emissions (15.5% from stationary fuel combustion) and 76.9% of which was Scope 2 emissions (56.1% from purchased electricity). The chart illustrates our progress in emissions management.

Energy Management

Everlight Chemical implements various measures to conserve energy and reduce carbon emissions. Our goal is to save at least 1% of electricity each year through these measures. In 2021, we achieved energy savings of 1,190 MWh and reduced carbon emissions by 619 tCO2e, which is equivalent to the amount of carbon dioxide planting 51,583 trees could absorb in a year, or in energy consumption terms, to a reduction of 4,284 GJ, representing 1.2% of our electricity consumption.

Key Performance Indicator (KPI)

➤ Electricity savings (%): [electricity savings/(total electricity consumption + electricity savings)] *100

➤ GHG emissions intensity: total GHG emissions (Scope1+Scope2) (tCO2e) /NT$million output value)

➤ Energy intensity: total energy consumption (GJ)/ NT$million output value

Evaluation Mechanism

➤ Annual review on environment management (1 time/year)

➤ ESG Committee meetings (2 times/year)

➤ Factory-level policy review (1 time/quarter)

➤ Internal audit on our environment management system (1 time/year)

➤ External audit (by DNV.GL) on our environmental management system (1 time/year)

➤ Evaluation of waste cleaning/management vendors (1 time/year)

Our historical energy intensity data show that we were able to cap energy consumption and energy intensity while expanding production capacity.
Year 2018 2019 2020 2021
Energy Intensity
(GJ/NT$ million in output)
80 79 85* 80

* Because of Covid-19, production output of 2020 was only 83% of that of 2019. Plants took different energy-conserving measures to control energy intensity at 85.

2021 Performance on Energy Conservation and Carbon Reduction
Energy Conservation and Carbon Reduction Measures Electricity Savings(MWh) Heating Value (106kcal) Emissions Savings (tCO2e) Energy Savings(GJ)
Production sites: Everlight Plant I-IV, Trend Tone Imaging, Everlight Suzhou
Measures include:
replacing old blowers, air compressors and fire-tube boilers; installing frequency converters; replacing old dryers with water-cooled refrigerated dryers; upgrading to permanent magnet motors in air compressors; etc.
1,190 1,023 619 4,284
Net-Zero Emissions Declaration

Facing the challenge of global climate change, Taiwan Chemical Industry Association (TCIA) needs to fulfill its obligations as a global citizen and make a solid contribution to the global sustainable development. As such, TCIA will integrate the technologies and resources of its members to promote the net zero emission, in alliance with industries, government and society, towards Taiwan’s goal of net-zero emissions in 2050.
TCIA, together with its members, is here to make three commitments below:

TCIA promises to fulfill its responsibility to protect the earth, comply with the “Paris Agreement”, cooperate with TCIA members to implement the United Nations’ “Climate Action”, develop the advanced low-carbon / negative-carbon technologies, protect the ecological environment, and achieve the goal of net-zero emissions by 2050 as well as take action to control the global warming within 1.5°C;

TCIA promises to follow the framework of the National Development Council’s “Taiwan 2050 Net-Zero Emissions Pathway”, integrates the resources of industries, government, academia and research institutes to assist TCIA members in order to develop the solutions of net-zero emissions, such as process innovation, energy transition, circular economy, hydrogen energy technologies, carbon dioxide capture & materials synthesis, and other negative carbon technologies;

TCIA is committed to bridge Taiwan’s chemical industry and the society, and align with the international net-zero emission strategies. TCIA will introduce the advanced compliances and technologies, link the mid/downstream industries, and build net-zero emission industrial ecological chains. TCIA will also promote the emission disclosure mechanism in Taiwan’s chemical industry, and proactively provide the public with the updated emissions information. It is TCIA’s social responsibility to establish the basis for social dialogues with accurate information.

Everlight Chemical agrees with the above commitments and is willing to work with TCIA to achieve net zero emissions by 2050, and is committed to conduct the required best practices.

Assessing Climate-Related Risks and Opportunities

In response to global trends in climate change, Everlight has started to conduct assessments of climate-related risks and opportunities according to the Task Force on Climate-related Financial Disclosures (TCFD) framework established by Financial Stability Board (FSB). Based on these assessments, we have formulated adaptation strategies for different types of impact.

Our Climate-Related Risk Management Process

Identification, Assessment and Management of Climate-Related Risks

Our risk identification process includes the following steps:

The Climate Change Working Group under the ESG Committee identifies and evaluates transition risks. Results of assessment are reported through administrative channels for further discussions and responses. The Risk Management Committee oversees the effectiveness of all mitigation and adaptation plans for climate-related risks.

The Climate-Related Risks/Opportunities We Face and Corresponding Management Approaches
Risk Category Source of Risk Issue Corresponding Opportunities and Strategies Performance Indicator 2021
Target
2021
Actual
2022
Target
Transition Risks Changes in Carbon Policies or Regulations Policy on carbon tax and emissions fee
  1. Implement an energy management system
  2. Devise carbon reduction targets and pathway based on expert advice
  3. Conduct carbon inventory across the board and implement carbon risk management
  4. Implement carbon reduction strategies and reduce GHG emissions intensity:
    ➤ Replace energy-intensive equipment
    ➤ Use low-carbon energy sources
    ➤ Improve energy efficiency
  5. Develop a roadmap for sustainable product development
  6. Raise water recycling rate
  7. Raise waste recycling rate
Progress on implementing ISO 50001 energy management system n/a n/a 100%
Regulation on existing products and services Progress on formulating carbon reduction targets and pathway n/a n/a 100%
Reputation Risk Shift in consumer preferences GHG emissions intensity
(tCO2e/NT$million output value)
≦8.6 8.9 ≦8.8
Technology Risk Failure to substitute existing products and services with lower emissions options Share of revenue generated by sustainable products n/a 54.7% ≧56%
Market Risk Changing customer behavior Water recycling rate (R2) ≧83% 86% ≧83%
Increased cost of raw materials Atom efficiency (%) ≧66.1% 67.1% ≧66.6%
Waste recycling rate ≧70% 69% ≧70%
Physical Risk Acute Risk Increased severity of extreme weather events (e.g. typhoons and floods) Improve organizational resilience Incidents of flash floods due to heavy rainfall n/a no survey was conducted 0
After taking into consideration related risks and transition opportunities, we have set the following goals

∎ Short-term goals: Increase production and distribution efficiency and implement new technologies to develop low-carbon manufacturing processes.
∎ Medium-term goals: Accelerate R&D of environmentally-friendly products/sustainable products.
∎ Long-term goals: Achieve carbon neutrality/net-zero emissions goals.

Awards and Honors

Awarded Outstanding Business in Green Procurement Practices

Awarded Outstanding Business in Green Procurement Practices

TCIA 2021 Circular Economy Achievement Award

TCIA 2021 Circular Economy Achievement Award

Everlight Plant II received another Green Factory Label (Certified for Cleaner Production Process) from the Ministry of Economic Affairs

Everlight Second Plant received another Green Factory Label (Certified for Cleaner Production Process) from the Ministry of Economic Affairs

Received the Green Chemistry Application and InnovationAwards by the Environmental Protection Administration (EPA) of Taiwan

Having devoted to promoting green chemistry practices, Everlight Chemical received another Green Chemistry Application and Innovation Award

Received the Green Chemistry Application and Innovation

Awards by the Environmental Protection Administration (EPA) of Taiwan

Having devoted to promoting green chemistry practices, Everlight Chemical received another Green Chemistry Application and Innovation Award