The world was rattled by political and economic volatility in 2023. With Russia and Ukraine still locked in battle, the geopolitical tension was escalated to a new height by the conflict between Israel and Hamas. Aggressive interest rate hikes by major central banks impeded consumer spending as the effects of trade barriers and climate change continued in a downward spiral. The Economic Outlook Report published by the International Monetary Fund (IMF) in January 2024 shows the 2023 global economy grew at the pace of 3.1%, down by 0.4% from 2022. Amid these severe challenges, FENC is treading steadily, bolstering the bedrock on which its sustainable operation flourishes with agility in its business model and strategies. Looking into the future, three challenges lie ahead of us. To prevail, we must stay mindful of external changes and prepare to strike pre-emptively. The first challenge to overcome is the economic environment. According to the IMF, the forecast for 2024 is clouded with uncertainties, overcast by the real estate crisis in mainland China, fluctuations in commodity prices, geopolitical fragmentation and shifts in international monetary policies. On the political front, 2024 is marked by a record number of elections that are set to alter the course of economic policies, diplomatic relations and global cooperation. We must observe closely and respond accordingly.

The second challenge is brought by the race towards net zero. Worsening climate conditions prompted the world to legislate net zero 2050 into laws, including Taiwan, which enacted the Climate Change Response Act in 2023. In the European Union, the transitional phase of the Carbon Border Adjustment Mechanism has started. Operating with a price tag on carbon emissions and a supply chain disrupted by the climate change and extreme weather patterns, businesses are faced with a precarious path. To excel, corporations should seek aggressive actions towards decarbonization, transforming the challenge into strength in order to take the lead in the race to net zero.  

The third challenge arrives with the rise of AI. As the world of technology leaps at an unprecedented pace, it is vital to embrace AI as a competitive edge. According to McKinsey & Company, the economic potential of AI could reach US$25.6 trillion, surpassing a quarter of the world’s GDP. In other words, regardless of the industry, the impact will be felt. We must embody a digital mindset, harnessing AI and other digital innovations to address challenges derived from emerging technologies.   

FENC is a multi-national conglomerate. Anchored in Taiwan, its operation arms are spread across mainland China, Japan, Vietnam, Malaysia, the Philippines and the U.S., forming robust supply chains in Asia and the American continent. Mitigating impacts from fluctuating raw material prices and diversifying risks in regional operation with a vertically integrated and agile production, sales and distribution network, FENC is well prepared for the economic challenges.

To tackle climate issues, FENC has set short, medium and long-term carbon reduction targets while aligning itself with international standards.  The year 2023 was the year that FENC released its first TCFD Report. It was also the year that FENC incorporated an internal carbon pricing mechanism, taking carbon reduction performance into consideration when making investment decisions. Determined to advance the circular economy, FENC has engineered recycling and remanufacturing technologies that transform waste from the land, ocean and air, working with major brands to create a green business model.

To keep pace with the explosive growth of AI applications, FENC has readied itself with an extensive set of digital strategies, integrating AI throughout the production, sales and administrative operations. Specifically, FENC is building smart factories that incorporate smart drone inspection and logistics management systems as well as quality forecasting and energy management platforms. Meanwhile, we are taking full advantage of generative AI, creating an internal knowledge base and AI-assisted decision-making system, setting FENC apart from the competition with technological prowess. 

FENC was the recipient of the National Sustainable Development Award in 2023. In addition, the year brought FENC the fourth consecutive Top Ten Taiwanese Companies Sustainability Model Award, the highest honor from Taiwan Corporate Sustainability Awards, and for the fifth consecutive year, FENC ranks among the top 5% in the Corporate Governance Evaluation. FENC also ranked fifth among the companies listed on the Taiwan Stock Exchange with 4.1 in FTSE Russell's ESG score and among the top 3% in Sustainalytics' ESG risk rating for the global chemicals industry.

Aligning growth strategies with the evolving trends, FENC braces itself for the future with an extensive production network, the determination to reach net zero and a competitive stance through the power of AI. Standing upon the time-tested bedrock cultivated for over 70 years, we are charting a blueprint for sustainable growth, taking strides towards the vision, FENC’s centennial.