FENC issues the latest Sustainability Report: Constructing a sustainable loop through low-carbon transition
FENC is presenting the 10th Sustainability Report. With an innovative mindset and outlook, the Company is fully committed to reaching net-zero emissions and inclusive development, pledging maximum efforts and more sustainable actions while creating innovative, low-carbon and eco-friendly products that generate positive social influence. FENC is working with its stakeholders to usher in a beautiful new century.
The 2022 report presents project highlights through four special reports. “Completing a Sustainable Loop Through Recycling” features FENC’s transformative touch, which turns post-consumer PET bottles and textiles into high-value products. With its vertically integrated supply chain and proprietary green technologies, FENC blazed an uncharted path. Working with international brands, the Company is creating values and lifestyles that foster recycling and sustainability. “Reaching Net Zero Through Low-Carbon Transition” details FENC’s short-, mid- and long-term GHG reduction targets and its carbon reduction pathway, which unfolds through five major strategies. The Company aims to build a low-carbon operation, partnering with the value chain to transmute the pressure to decarbonize into a propelling force that thrusts FENC towards net zero. “Fulfilling Core Corporate Values Through Sustainable Financing” illustrates FENC’s business model, which cultivates a harmonious coexistence with human society and the natural world. The model is integrated with sustainable financial products to fulfill the Company’s core corporate values. As its worldwide subsidiaries embrace the model, FENC aims to inspire more corporate participation in sustainable financing and to fully implement sustainable development goals. “Overcoming Pandemic Challenges Through Solidarity” narrates the efforts and adaptive measures FENC has taken in the post-pandemic era at its worldwide locations to ensure employee safety and business continuity. The Company initiated localized anti-pandemic and support measures that provide workplace safety in the timeliest manner.
For five consecutive years since 2019, FENC has been ranked among the top 5% of the corporate governance evaluation, the highest level. The Company leads the innovative development of sustainable finance in Taiwan, issuing multiple products that are either the first in Taiwan or Asia, and taking the spot as the world’s first corporation to issue four types of sustainable bonds listed on the Sustainable Bonds Database from the International Capital Market Association (ICMA). FENC generated NT$45.976 billion in green product revenues in 2022, a 20% jump. Leveraging its vertically integrated and multi-disciplinary technological know-how, the Company channels its core capabilities to drive innovations in green technologies, including recycling breakthroughs that turn waste from the land, ocean and air into source materials for the next-generation green products.
FENC improves energy and resource efficiency, mitigates climate change and enforces environmental management through waste avoidance and recycling, establishing the Company-wide GHG reduction targets in 2022. With 2020 as the baseline, the Company aims to reduce 20% of GHG emissions by 2025, 40% by 2030 and reach net zero by 2050 with the means of five major strategies it has established. The 2022 implementation efforts helped FENC cut GHG emissions by 14% compared to the baseline year, keeping the Company on track. In March 2023, FENC issued its first Task Force on Climate-related Financial Disclosures (TCFD) Report and submitted the commitment letter to the Science Based Targets Initiative (SBTi), joining the global community on the march towards net zero.
When it comes to human resources policy at FENC, labor rights take precedence. The Company protects and supports its employees with actions. Within the year 2022, FENC launched a special project on human rights management, expanded the coverage of the FENC Human Rights Policy, established the community engagement policy and implemented the human rights due diligence, assessing the future impact from a host of issues while establishing mitigation and remediation measures with quantified management targets. The Company has a robust framework in place in terms of employee compensation, offering an average regular earning 34 % higher than the market average in 2022. For two consecutive years, FENC received HR ASIA Best Companies To Work For In Asia Award, and during the reporting year, FENC was honored with Enterprise Asia’s Asia Responsible Enterprise Award in the Investment in People category. With strategic foresight, the Company develops specialized training to enhance corporate growth, equipping talents with combat readiness, which helped FENC bring home its fifth People Development Leadership Award from Taiwan Corporate Sustainability Awards (TCSA) and the Outstanding Learning Culture Award from LinkedIn.
FENC devoted NT$110 million to social engagement in 2022. The Y. Z. Hsu Science Award, a tradition upheld by the Far Eastern Y. Z. Hsu Science and Technology Memorial Foundation, encourages commitment from academia to technological R&D and innovation, accumulating NT$180 million in prizes presented over the years. The Far Eastern Memorial Foundation held the first Historic Tour Month. The event drew acclaim from nearly 600 participants from wide-ranging disciplines.
FENC also received a slew of accolades for its sustainability performance. The Company has been inducted as a constituent of multiple sustainability indexes, including MSCI ESG Leaders Index, FTSE4Good Emerging Indexes, Taiwan Corporate Governance 100 Index, FTSE4Good TIP Taiwan ESG Index and Greater China Business Sustainability Index. The Company also reached CDP Management Level in Water Security and Climate Change. Chairman Douglas Tong Hsu was presented with the TCSA Corporate Sustainability Lifetime Achievement Award. TCSA also awarded FENC the Top 10 Taiwanese Companies Sustainability Model Award and Platinum for Corporate Sustainability Report Award, putting FENC at the top among the traditional industries. Additional merit awards include the Circular Economy Leadership Award, Innovative Growth through Innovation Award, People Development Leadership Award and Climate Leadership Award. In 2022, FENC received the Global Corporate Sustainability Awards (GCSA) Best Practice Award for World Market – Great Practice and Silver for Corporate Sustainability Reporting Award. The Company is also the 2023 first prize winner in the ESG Performance category and the Low-carbon Operation category of the Global Views Monthly ESG Awards.
Disclosures within the scope of the 2022 report account for 97% of the consolidated revenues for the reporting year. The report is prepared in accordance with the guidelines set forth in the 2021 version of the Global Reporting Initiative’s GRI Standard and has received third-party assurance from SGS Taiwan Limited. The report also adheres to the TCFD framework, the Sustainability Accounting Standards Board (SASB) Chemical Sector Disclosures and the sustainability disclosure standards from Draft IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and Draft IFRS S2 Climate-related Disclosures. Looking into the future, FENC will continue to engage stakeholders through its annual sustainability report as it fulfills the sustainable vision.
Download the 2022 FENC Sustainability Report at https://csr.fenc.com/report.aspx?lang=en