FENC Issues the Latest Sustainability Report
FENC has published its twelfth Sustainability Report (SR). With innovation as the core driving force, FENC is proactively advancing AI applications and intelligent management, continuously deepening its circular recycling technologies, and demonstrating its commitment and tangible achievements toward achieving net-zero emissions. From multiple dimensions — environmental, social, and governance — the company promotes sustainable development, dedicates itself to implementing sustainability initiatives with positive social impact, enhances transparency in sustainability information disclosure, and collaborates closely with stakeholders to build a low-carbon, resilient, and inclusive green future.
FENC has been widely recognized both domestically and internationally for its outstanding sustainability performance, demonstrating deep expertise in the ESG field and strong global competitiveness. In 2024, the company was selected for the first time as a constituent of the Dow Jones Sustainability Index (DJSI) Emerging Markets — the first and only industrial conglomerate in Taiwan to receive this honor. It has also consistently been included in the MSCI ESG Leaders Index and the FTSE4Good Emerging Index. According to Sustainalytics ESG risk ratings, the company ranks within the top 1.5% globally in the chemical industry. In terms of climate action, FENC earned an “A List” rating — the highest level — in the CDP Climate Change assessment, reflecting its strong effectiveness in environmental risk management.
Domestically, the company has been named one of Taiwan’s Top 10 Taiwanese Companies Sustainability Model Award for five consecutive years in the Taiwan Corporate Sustainability Awards (TCSA). It also received the Platinum Award for Corporate Sustainability Report Award, along with six individual performance awards in Climate Leadership Award, Circular Economy Leadership Award, Information Security Leadership Award, Growth through Innovation Leadership Award, People Development Leadership Award, and Creative Communications Leadership Award — fully showcasing its comprehensive ESG strengths. Additionally, FENC won the “First Prize at Manufacturing Industry” and “First Prize at Low-Carbon Operation” top prizes in the Global Views Monthly ESG Awards, becoming the only double First Prize Winner in Taiwan for two consecutive years, further solidifying its leadership in sustainable development.
The 2024 Sustainability Report features FENC’s ESG undertakings with three special reports. “Innovative Applications x Green Raw Materials x Visionary Deployment” showcases FENC’s strong circular economy capabilities, leveraging vertical integration and cross-disciplinary collaboration to develop innovative raw materials and expand recycled polyester capacity, driving green growth. “The March Towards Net Zero: FENC’s Low-Carbon Innovation” analyzes the company’s pathway to net-zero emissions, highlighting that FENC has achieved a 34% reduction in greenhouse gas emissions from the base year, reaching its near-term target ahead of schedule in 2024. Furthermore, FENC has set new ambitious targets for 2030: reducing GHG emissions by 50%; incorporating 50% green raw materials; including 50% green products in the product mix by 2030. Through five major low-carbon transition strategies and value chain engagement, FENC continues to advance its decarbonization efforts in a pragmatic manner. Lastly, “Creating an Intelligent Future With Technological Innovations and Applications” focuses on AI-driven intelligent development, integrating generative AI into production, business, and administrative processes to establish intelligent operations that enhance decision-making efficiency and operational resilience, paving the way toward a smart and sustainable future.
FENC upholds sound corporate governance in the governance dimension, fulfilling corporate management responsibilities while driving sustainable development and innovative transformation. To strengthen the capabilities of directors and enhance board effectiveness, director training programs cover a dual focus on ESG and AI. In addition, FENC spearheads sustainable finance innovation, having issued nearly 40 sustainable financial products and raised approximately NT$80 billion in total. It also successfully launched Taiwan’s first sustainable exchangeable bond. These outstanding achievements have been recognized with multiple awards from international financial media, setting a benchmark in the domestic capital market and highlighting the Company’s leading position in sustainable finance and corporate governance.
In 2024, FENC continued to advance green products and environmental management, achieving NT$48.3 billion in green product revenues, accounting for 33% of total revenue, marking four consecutive years of growth. FENC is building low-carbon competitiveness through its 3R strategy — Recycle, Replace, and Reduce — including pioneering the industry’s first commercialization of footwear midsoles made from waste PET bottles, setting a new benchmark for sustainable material applications. On the environmental management front, FENC met all targets for reducing energy consumption, water use, air pollutants, and waste, and implemented 94 energy and emission reduction projects, averting 70,188 tCO₂e. In addition, FENC launched an energy and carbon reduction campaign for employees, achieving a further reduction of 120,000 kilograms of CO₂ emissions, underscoring its collective determination to move toward net-zero carbon emissions.
On the social front, FENC is dedicated to protecting employee and human rights, with human rights due diligence covering 100% of its global sites. FENC has established a competitive compensation system and actively promotes talent development through a digital learning ecosystem, resulting in an average of 29.49 training hours per employee, which represents a 16% increase, with digital learning participation up 33%. FENC’s commitment to talent cultivation and a supportive workplace has earned it the HR Asia Best Companies to Work for in Asia Award for four consecutive years, demonstrating its strong employer brand. In supply chain management, 100% of significant suppliers have passed the Supplier ESG Survey, ensuring sustainability throughout the supply chain. Social engagement efforts include long-term environmental education programs reaching over 6,000 teachers and students, alongside initiatives to promote science education, empower youth, and reward Taiwan’s academic community through the Y. Z. Hsu Science Award, which has awarded over NT$200 million in prizes to encourage technological innovation and development.
Disclosures within the scope of the 2024 report account for 96% of the consolidated revenues for the reporting year. Following the 2021 GRI Standards, FENC has obtained third-party assurance from SGS Taiwan and references frameworks including TCFD, SASB chemical industry standards, and the implementation progress of IFRS sustainability disclosure standards. Leveraging AI technology to drive green innovation, FENC accelerates the development of low-carbon products and carbon reduction initiatives. Moving forward, FENC will continue publishing sustainability reports to enhance information transparency and actively engage stakeholders, working together to address global challenges and pioneer a new low-carbon era powered by technology and sustainability.
Download the 2024 FENC Sustainability Report at https://csr.fenc.com/report.aspx?lang=en
