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

Air Pollution Management

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.

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

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.

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.

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.

Our historical energy intensity data show that we were able to cap energy consumption and energy intensity while expanding production capacity.

* 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

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

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.