FENC is committed to integrate carbon reduction and circularity into its operation and practices. In June 2024, the Company launched an energy and carbon reduction campaign at the Corporate Management, which motivated carbon-reducing actions with a competition and programs tailored for employees. The campaign also tapped into FENC’s strength in recycling technologies, leading employees’ to integrate environmental and sustainable practices into their lives. A total of 379 staff members took part in the campaign, and together, they reduced 120,754 kgCO₂e of carbon emissions by the end of 2024, nearly twice as much as the annual carbon reduction target that was set for the year.

FENC also developed in-house applications to integrate commonly used functions and news announcements for employees. Among them, the Carbon Reduction Passbook and the application for meal box donation had been helpful assistants for facilitating a carbon-reducing lifestyle. The Carbon Reduction Passbook is where employees may check the carbon reduction targets and progress, which gave them a sense of accomplishment by working towards a common goal. The application quantified employees’ monthly carbon-reducing contribution from activities such as the use of public transportation, walking and running based on their monthly uploads. Each quarter, the two departments with the highest carbon reduction per capita were presented with the title, Carbon Reduction Role Model, and the 15 employees with the highest carbon reduction contribution were awarded as the Carbon Reduction Leaders. These incentives boosted employees’ willingness to participate.

The meal box donation program was established at the canteen. Employees could donate the meal boxes they had paid for to others through the application to reduce food waste while cutting the costs and carbon emissions derived out of food disposal. By the end of 2024, the program had kept a total of 996 meal boxes from going to waste.

Another environmental activity at FENC is the quarterly rTEX circular clothing program, through which employees are encouraged to bring used clothing containing more than 80% polyester to work for recycling. The clothes are then transformed by FENC into brand-new garments using its chemical textile recycling technology.

Additionally, gasoline-powered vehicles among FENC’s fleet had been replaced with electric vehicles. The downtime for office lighting has been increased and the air-conditioning has been set at a higher temperature. These are FENC’s efforts in building a workplace that reduces energy and carbon emissions.

In 2024, L'Oréal Group, the multinational personal care corporation, launched the BIG BANG Beauty Tech Innovation Program in Taiwan. Companies were invited to participate in the competition by submitting sustainable beauty tech solutions. Nearly 600 Asian companies entered with innovative proposals. After intense competition, 16 companies were named as winners. Among them was FENC, one of only two from Taiwan. The award represented FENC’s pursuit of excellence in sustainable innovation.

FENC is the world's largest supplier of food-grade rPET. With over three decades of recycling experience and know-how, the Company’s proposal entails a trial closed-loop recycling program for the packaging of personal care products. FENC converts the recycled bottles into high-quality rPET chips, which will then transform to new personal care packaging, thus completing the closed-loop system. FENC’s innovation was exhibited during the 2024 Annual Rendez-Vous at L'Oréal Taiwan, the final stage of the competition, which provided an opportunity for peer exchange. The Company was later announced as a winner.

FENC will engage L'Oréal Group further in the future by expanding the closed-loop recycling program to include additional personal care product packaging and turning them into quality rPET chips. This closed-loop model is a major step towards reducing resource waste and the carbon footprint, which advances the sustainability of the environment as well as L'Oréal Group as a new circular chapter begins in the beauty industry.

As the world confronts the challenge of global warming, a consensus has been reached regarding the necessity to reach net zero emissions. FENC has also been contributing. To embody sustainable operation, FENC has dedicated itself to promoting the circular economy, taking action to decarbonize through partnerships established across wide disciplines. In September 2024, FENC was invited to participate in the New Taipei Sustainability Workshop, a net zero program held by the New Taipei City Government and organized by the Global Views Monthly. The workshop integrated resources and efforts from the industry, government and academia. Allen Sha, Executive Vice President of Corporate Staff Office, represented FENC and presented an industry perspective, offering analysis with case studies exemplifying the circular economy and green living. Representing the academic point of view was Dr. Kuei-Tien Chou, Director of the Risk Society and Policy Research Center of National Taiwan University, who shared his experience in connecting local governance with sustainable development on a global scale. Through peer sharing and exchange, FENC led the green-collar talent from the New Taipei City Government on an exploration of action plans for sustainable development and opportunities for public-private partnership in the promotion of the circular economy.

Representatives from 15 departments under the New Taipei City Government participated in the workshop, where they formed groups during the inter-departmental discussions to brainstorm for creative sustainable programs and collaborative opportunities. For instance, representatives from the Education Department, Youth Department and Sports Department developed the proposal of hosting a marathon to advocate sustainability and carbon reduction. They referred to the three core focuses of FENC’s sustainable business model, the recycling technologies, low-carbon production and value chain collaboration. The value chain was identified as an appropriate starting point for the government to implement low-carbon strategies. Specific approaches included offering runners’ jerseys made of recycled materials, digitizing the program booklet and offering discounts to those using the digital identity certificate, aiming to drive local consumption and promote sustainable development. The in-depth exchanges with the local government was an opportunity to not only share FENC’s sustainable development philosophy, but provide assistance with the promotion of sustainable development goals, working together to realize the vision of a sustainable city.

The enactment of the carbon fee mandate in 2025 is putting pressure on the corporate community in Taiwan to decarbonize. FENC formed the 1+N Carbon Management Demonstration Team, leading OGM, Toung Loong Textile MFG. Co. Ltd., Hong Yi Fiber Ind. Co. Ltd. and Yi Shin Textile Industrial Co. Ltd., as well as six diffusion plants as the mentored manufacturer, working together to reduce carbon emissions and operational risks in the industry chain by implementing low-carbon production and optimizing resource efficiency.

The project, which was approved on April 8, 2024, received NT$25.5 million in subsidy from the Industrial Development Agency of Ministry of Economic Affairs (MOEA). With an implementation period from April 2024 to September 2025, FENC serves as a lead, forming a carbon management partnership and integrating technical resources with ten upstream and downstream manufacturers. With coaching provided by the Taiwan Textile Research Institute, each member is to propose a carbon management plan based on the standards of ISO 14064-1 GHG inventory and ISO 14067 carbon footprint to ensure the integrity and credibility of the carbon reduction data

The target for this project is to reduce 30,000 tCO₂e by 2025. As of October 2024, the team has reduced 8,270 tCO₂e. FENC is also helping the members assess their needs during the GHG inventory process, confirming the scope of inventory and collecting data in order to complete the carbon management and GHG inventory training.

To support the global effort in energy conservation and carbon reduction, OTIZ, an FENC subsidiary, and the Polyester Business of FENC submitted their carbon reduction targets and received the approval from the Science Based Targets initiative (SBTi) in March and June 2024, respectively. Both entities set their targets based on the 1.5°C pathway established in the Paris Agreement, ready to leap towards net zero emissions by 2050.

SBTi is a joint initiative by the United Nations Global Compact, international carbon disclosure organization CDP, World Resources Institute and World Wide Fund for Nature. The initiative operates on a science-based framework to help companies set medium- and long-term carbon reduction targets in their respective industries with the ultimate goal to reach net zero. In recent years, SBTi has risen as one of the world’s most reliable organizations for the verification of carbon reduction targets.

As the threat from global warming exacerbates, FENC remains focused on developing green products to quench the thirst for eco-friendly and low-carbon solutions from international brand customers. To support its ambition to cut carbon emissions, FENC has established five overarching strategies, including improving energy efficiency; adopting low-emission fuel alternatives; developing renewable energy; utilizing CCU; fostering raw material transition. The Company is aggressively promoting green manufacturing, tackling carbon reduction with pragmatic actions. In 2024, FENC established the low-carbon transition targets, aiming for 50% carbon reduction, 50% green products and 50% green raw materials by 2030, which exceed the 1.5°C pathway specified by the SBTi, as a declaration of FENC’s unwavering determination to reach net zero.

In December 2024, FENC was selected as a component stock of the Emerging Markets Index by the Dow Jones Sustainability Indices (DJSI), the world’s leading sustainability benchmark indices. The recognition made FENC the first and only industrial conglomerate in Taiwan to make the list.

DJSI is a key reference for global institutional investors when it comes to evaluating a company’s sustainability performance. Out of over 10,000 global companies analyzed and evaluated by the DJSI, only the top 10% are selected. FENC has long been engaged in ESG development, and in 2024, the Company was chosen over its global peers as a DJSI component stock for the first time. FENC was also inducted into the 2025 Sustainability Yearbook from S&P Global, another first time, and given the Industry Mover Award in the Industrial conglomerate category. These recognitions are a testimony to FENC’s exceptional performance within its industry.

Note: The DJSI was renamed the Dow Jones Best-in-Class Index in February 2025.