Climate-related Risk Strategies
Climate Policy
Commitment | FENC aligns with the Paris Agreement by setting its carbon reduction targets and responding to climate change with the overarching goal of limiting the temperature increase to 1.5°C above pre-industrial levels. Through phased decarbonizing actions targeting its own operations and forming coalitions with supply chain partners, FENC is promoting green transformation and building climate resilience within the industry. |
Target | As the world moves towards carbon reduction in the net zero era, FENC stays in line with this trend and boosts its competitiveness by recalibrating its carbon reduction targets upward in 2024. With 2020 as the base year, the Company is aiming for 30% reduction in scopes 1 and 2 GHG emissions by 2025 as the near-term target, 50% by 2030 as the mid-term target, and net zero emissions by 2050 as the long-term target. At FENC’s Polyester Business, the target has been set for 42% reduction in scope 3 emissions by 2030 with 2022 as the base year. At Textile Business, the target has been set for 35% reduction in scope 3 emissions by 2034 with 2023 as the base year. To support the net zero vision and steer carbon reduction actions within the industry chain, FENC has also established new targets for the low-carbon transition in 2024, setting the trajectory for 50% carbon reduction, 50% green raw materials and 50% green products by 2030. By transforming the entire operation through the low-carbon model, including the raw materials, production processes and products, FENC is leading the industry into a green future. |
Strategy | 1. Improve energy efficiency. 2. Adopt low-emission fuel alternatives. 3. Develop renewable energy. 4. Utilize CCU. 5. Foster raw material transition. |
Note: The scope of the commitment includes our own operations as well as key value chain partners, including raw material suppliers and other business partners.
Building Climate Resilience
The effects of climate change and global warming are growing severe. To mitigate and adapt to climate risks, FENC adopted the Task Force on Climate-related Financial Disclosures (TCFD) assessment in 2019. Each year, the Company discloses the results in its annual Sustainability Report and on the Company website. In 2023, the Company issued its first TCFD Report. Leveraging the TCFD framework and sustainability disclosure standards from IFRS S2 Climate-related Disclosures, the report is an assessment of climate-related financial risks and opportunities on FENC Businesses and production sites with which the Company wishes to cultivate a resilience mindset.
⇥ FENC Climate-Related Financial Disclosures (TCFD) Report
The Role of the Governing Body in the Governance of Climate-related Risks and Opportunities
The Board of FENC, which serves as the highest governing and decision-making entity for climate and environmental sustainability issues, is responsible for reviewing major decisions and strategic directions concerning these issues and taking climate-related risks and opportunities into account while making business decisions. To strengthen implementation and oversight regarding sustainability issues, the Board established the Sustainability Committee in 2020 in accordance with the Sustainable Development Principles. As the governing body for climate and environmental sustainability, the Sustainability Committee is tasked with reviewing climate and environmental sustainability policies and management guidelines, supervising project execution, monitoring progress, consolidating material issues and presenting the issues to the Board. The goal is to ensure the fulfillment of compliance obligations and operation of risk control mechanisms in order to respond to stakeholder expectations and enhance sustainable climate and environmental governance.
The Role of Management Levels in the Governance of Climate-related Risks and Opportunities
FENC established the Sustainability Implementation Committee to facilitate the implementation of corporate sustainable development. The committee is composed of the Presidents and Chief Operating Officers of each Business, managers of domestic and foreign production and operation sites, and dedicated personnel from the Sustainability Team under the Corporate Staff Office. The President of Corporate Management, serving as the convener, presents the implementation outcomes of sustainability projects to the governing body on a regular basis. The Energy Task Force and Environment, Occupational Safety and Health and Community Relations Management Task Force are established under the Sustainability Implementation Committee to reinforce and oversee the management of material risks and opportunities related to climate and environmental sustainability. The task forces are also tasked with preparing action plans, implementing projects and ensuring risk control in alignment with the targets approved by the governing body.
Climate-related Risks and Opportunities Affecting FENC’s Prospects
The climate-related risks and opportunities that could reasonably be expected to affect FENC’s prospects, along with their respective time horizons, are identified in the following table:
Topic | Climate-Related Risks and Opportunities | Potentially Effected Time Horizon | ||||
Type | Description | Short-term | Medium-term | Long-term | ||
Greenhouse Gas Emissions (Emissions Management) | Transition Risks | Policy and Legal | Increasingly stringent domestic and international carbon control policies and regulations could lead to the increase in the compliance costs or the risk of pecuniary penalties related to carbon control. | ◎ | ◎ | ◎ |
Greenhouse Gas Emissions (Sustainable Products) | Opportunities | Products and Services | Increasing market demand for low-carbon products, investment in the R&D of sustainable products and reduction of the carbon footprint of existing products may lead to higher market share and revenue of sustainable products. | ◎ | ◎ |
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Energy Management | Physical Risks | Acute | Chemical manufacturing processes are inseparable from energy use. External extreme weather events or inadequate internal management of energy-consuming equipment may lead to low energy stability and energy supply interruptions, resulting in reduced capacity, operational interruptions and operating losses. | ◎ | ◎ | ◎ |
Opportunities | Resource Efficiency | Enhancing energy efficiency may effectively reduce energy consumption and energy expenditures. | ◎ | ◎ | ◎ | |
Water Management | Physical Risks | Acute | External extreme weather events may lead to water shortages, resulting in the risk of reduced capacity and operational interruptions. | ◎ |
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Transition Risks | Policy and Legal | Inadequate water resources management may lead to water pollution violations, resulting in pecuniary penalties. | ◎ |
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Opportunities | Resource Efficiency | Enhancing water efficiency and implementing water resources management may effectively reduce water procurement costs. | ◎ | ◎ |
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Current and Anticipated Impacts of Climate-related Risks and Opportunities on Business Model and Value Chain
FENC categorizes the magnitude and timeframes of climate-related risks and opportunities to evaluate their current and anticipated impacts on the business model and value chain of its Production Business. Details are as follows:
Topic | Climate-Related Risks and Opportunities | Impacts on Business Model | Impacts on Value Chain | ||||
Type | Description | Current | Anticipated | Current | Anticipated | ||
Greenhouse Gas Emissions (Emissions Management) | Transition | Policy and Legal | Due to the increasingly stringent domestic and international carbon control policies and regulations, the compliance costs or the risk of fines related to carbon control increase. | To address carbon fee risks, FENC has established internal inventory and compliance mechanisms in line with current carbon fee and reduction requirements. | As the carbon fee system grows extensive and regulations become more stringent, FENC must increase and enhance carbon reduction technologies during production, such as low-emission raw material alternatives and energy efficiency improvement, to maintain production flexibility. | No Direct Impact | FENC’s procurement costs could increase as upstream suppliers raise the price of raw materials due to carbon fees. |
Greenhouse Gas Emissions (Sustainable Products) | Opportunities | Products and Services | Due to increasing market demand for low-carbon products, investing in the R&D of sustainable products and reducing the carbon footprint of existing products to expand the market share of sustainable products and increase revenue. | FENC has introduced low-emission raw material alternatives into certain product lines and developed sustainable products to meet market demand. | With rising market demand, FENC must accelerate the mass production of sustainable products and the adoption of low-carbon technologies to expand market share. | FENC’s sustainable products are favored by downstream customers. | To reach decarbonization targets, downstream customers may increase their demand for FENC’s sustainable products. |
Energy Management | Physical Risks | Acute | Chemical manufacturing processes are inseparable from energy use. If external extreme weather events or poor internal management of energy-consuming equipment lead to low energy stability and cause energy supply interruptions, it will result in reduced capacity, operational interruptions, and consequently operating losses. | Energy supply has not caused a significant impact on production capacity allocation or process operation. However, considering factors such as extreme climate and aging equipment, FENC has incorporated contingency energy supply and dispatch into management planning in advance to reduce potential risks in the future. | The increase of extreme weather events or equipment failures may lead to insufficient energy supply and reduced production capacity. FENC continues to establish contingency energy supply and dispatch strategies to maintain process stability. | No Direct Impact | The instability of energy acquisition by upstream suppliers may lead to delays in raw material delivery, consequently impacting FENC’s production schedule and delivery commitments. |
Opportunities | Resource Efficiency | Enhancing energy efficiency to effectively reduce energy consumption and energy expenditures. | Energy efficiency has been improved through process optimization and enhancement of energy management systems. | FENC may ensure process stability and reduce the reliance on external energy sources through continuous investments in energy efficiency and equipment upgrades. | No Direct Impact | No Direct Impact | |
Water Management | Physical Risks | Acute | If external extreme weather events lead to water shortages, it will result in the risk of reduced capacity and operational interruptions. | There are currently no direct impacts. FENC production sites have implemented drainage quality monitoring and management. | Extreme weather may lead to insufficient water supply, resulting in reduced production capacity, operational interruptions and increased operating costs. FENC must continuously implement contingency water supply and recycling measures to maintain process stability. | No Direct Impact | Water scarcity may affect the production capacity of upstream suppliers, which impacts FENC’s manufacturing processes and product delivery capabilities. |
Transition | Policy and Legal | Facing regulatory fines due to water pollution caused by the failure to properly implement water resources management. | There are currently no direct impacts. FENC production sites have implemented drainage quality monitoring and management. | Inadequate water resources management may lead to the risk of pecuniary penalties or production suspension due to discharge violations and affect operational stability. FENC must continue reinforcing water quality monitoring and management to keep discharge quality compliant with regulatory standards. | No Direct Impact | Inadequate water management or discharge by upstream suppliers may lead to production restrictions due to water shortages or violations, consequently disrupting raw material supply to FENC, affecting production site operations and impacting production schedules and product delivery. | |
Opportunities | Resource Efficiency | Enhancing water resources utilization efficiency and implementing water resources management to effectively reduce water resources procurement costs. | FENC production sites are continuously implementing water recycling and monitoring measures to enhance water efficiency. | Expanding water recycling and management systems could enhance the resilience to water shortages at FENC production sites under extreme weather conditions and reduce the water cost per unit of production. | No Direct Impact | No Direct Impact | |
Impacts of Climate-related Risks and Opportunities on Strategy and Decision-making
FENC has established well-defined climate transition and action strategies for climate risk adaptation and mitigation based on the impacts of transition and physical risks and opportunities, refining production models through responsible actions to co-create a green future with value chain partners.
Topic | Climate-related Risks | Changes in Business Model and Resource Allocation | ||
Type | Current | Anticipated | ||
Greenhouse Gas Emissions (Emissions Management) | Transition Risks | Policy and Legal |
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Energy Management | Physical Risks | Acute |
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Water Management | Physical Risks | Acute |
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Transition Risks | Policy and Legal |
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Topic | Climate-related Opportunities | Changes in Business Model and Resource Allocation | ||
Type | Current | Anticipated | ||
Greenhouse Gas Emissions (Sustainable Products) | Opportunities | Products and Services |
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Energy Management | Opportunities | Resource Efficiency |
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Water Management | Opportunities | Resource Efficiency |
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Impacts of Climate-related Risks and Opportunities on Financial Position, Financial Performance and Cash Flows
FENC conducts financial impact assessments on the risk mitigation strategies. Based on the identified material climate-related risks and opportunities, the Company conducts strategic planning and risk control to achieve its climate targets, detailing their effects on its financial position and performance, which include the income statement (revenue and expenses), the statement of cash flows and the balance sheet (assets and liabilities, capital and financing). Details are provided below:
Topic | Climate-Related Risks and Opportunities | Financial Impacts During the Reporting Period | |
Type | |||
Greenhouse Gas Emissions (Emissions Management) | Transition Risks | Policy and Legal | Through measures related to strategies such as improving energy efficiency, developing and procuring renewable energy, introducing alternative fuels, conducting regular external testing and verification of GHG emissions, conducting policy outreach and implementing carbon reduction management in response to Taiwan’s carbon fee regulations, financial statement categories primarily impacted are property, plant and equipment (including construction in progress and prepayments for equipment), operating costs (such as depreciation, green power procurement and carbon fees) and cash flows. |
Greenhouse Gas Emissions (Sustainable Products) | Opportunities | Products and Services | Through measures related to strategies such as the research, development and promotion of sustainable products as well as obtaining sustainable product certifications, financial statement categories primarily impacted are property, plant and equipment (including construction in progress and prepayments for equipment), operating costs (such as certification fees, training expenses and consulting and assurance fees) and cash flows. |
Energy Management | Physical Risks | Acute | Through measures related to maintaining the operational reliability of energy-consuming equipment, financial statement categories primarily impacted are property, plant and equipment (including construction in progress and prepayments for equipment), operating costs (such as depreciation) and cash flows. |
Opportunities | Resource Efficiency | Through measures related to strategies such as improving energy efficiency and conducting regular external audits of the ISO 50001 energy management system, financial statement categories primarily impacted are property, plant and equipment (including construction in progress and prepayments for equipment), operating costs (such as depreciation, repair and maintenance expenses, certification fees and green power expenditures) and cash flows. | |
Water Management | Physical Risks/Transition Risks | Acute/Policy and Legal | Through measures related to wastewater management, such as adding, updating, replacing or maintaining facilities, or strategies such as conducting regular inspections and testing and obtaining discharge permits, financial statement categories primarily impacted are property, plant and equipment (including construction in progress and prepayments for equipment), operating costs (such as depreciation, certification fees and environmental, health and safety expenditures) and cash flows. |
Opportunities | Resource Efficiency | Through measures related to water conservation and recycling projects and strategies such as establishing water efficiency management systems, financial statement categories primarily impacted are property, plant and equipment (including construction in progress and prepayments for equipment), operating costs (such as certification fees and environmental, health and safety expenditures) and cash flows. | |
Climate-related Scenario Analysis and Assessment of Climate Resilience
FENC assessed the impacts of climate-related risks and opportunities through scenario analysis and determined corresponding operational strategies and measures to enhance resilience. Considering the progressing domestic and international climate policies and uncertain environmental changes to come, time and circumstances are factors that may alter the impacts of climate risks and opportunities on a corporation. It is FENC’s intention to evaluate the resilience of its operations regarding material climate issues through scenario analysis to examine the impacts of climate risks and opportunities and modify business strategies accordingly.
The assessment of climate issues identified risks and opportunities related to GHG emissions as having the highest potential financial impacts. Given the high degree of uncertainty associated with such risks and opportunities, scenario analysis for material climate-related issues was conducted to assess the resilience of FENC in the face of climate risks.
The following sections describe the results of the scenario analysis regarding material climate risks and opportunities related to GHG, as well as the assessed impacts on business strategies and models.
Climate transition risks and opportunities are analyzed across different timeframes, with the magnitude of impact presented as low, medium or high to assess the future impact of each risk and opportunity on FENC. According to the effect of each issue on the revenue contribution of production sites, the magnitude of impact of the risks and opportunities are classified into four tiers, 0% as no impact; less than 10% as low impact; 10% to 30% as medium impact; over 30% as high impact.
Topic | Climate-Related Risks and Opportunities | Magnitude of Impact | |||||
Type | Description | ||||||
Short-term | Medium-term | Long-term | |||||
Greenhouse Gas Emissions (Emissions Management) | Transition Risks | Policy and Legal | Carbon pricing mechanism | Due to the increasingly stringent domestic and international carbon control policies and regulations, the compliance costs or the risk of fines related to carbon control increase. | Low | Medium | Medium |
Greenhouse Gas Emissions (Emissions Management) | Transition Risks | Policy and Legal | Carbon border tax | Due to the increasingly stringent domestic and international carbon control policies and regulations, the compliance costs or the risk of fines related to carbon control increase. | Low | Low | Medium |
Greenhouse Gas Emissions (Emissions Management) | Opportunities | Resource Efficiency | Use of lower-emission sources of energy | Investing in renewable energy power generation facilities can effectively enhance the control over renewable energy costs, thereby reducing the acquisition cost of renewable energy and effectively achieving the renewable energy usage targets. | Medium | Medium | Medium |
Greenhouse Gas Emissions (Sustainable Products) | Opportunities | Products and Services | Development or expansion of low-emission goods and services | Due to increasing market demand for low-carbon products, efforts are invested in the R&D of sustainable products and reduction of the carbon footprint of existing products to increase the market share of and revenue from sustainable products. | Medium | Medium | Medium |
Greenhouse Gas Emissions (Sustainable Products) | Opportunities | Products and Services | Access to new markets | Due to increasing market demand for low-carbon products, efforts are invested in the R&D of sustainable products and reduction of the carbon footprint of existing products to increase the market share of and revenue from sustainable products. | Medium | Medium | Medium |
Qualitative scenario analysis is employed for the resilience assessment of additional climate-related risks and opportunities.
Topic | Resilience Assessment Description |
Energy Management | FENC ensures the stability of its production operations by maintaining energy-consuming equipment with precision and building energy storage systems. The Company also enhances its readiness against power fluctuation risks by detailing the inventory of critical equipment, standardizing maintenance and repair plans across all production sites and installing energy storage facilities in phases. Meanwhile, all production sites support governmental energy policies and conduct regular outreach programs, keeping the management mechanisms in line with regulatory requirements. The multi-faceted energy management strategies has buttressed FENC with tremendous operational resilience as the Company tackles climate change and energy supply challenges. |
Water Management | FENC has established comprehensive water pollution prevention and water recycling systems. By installing the continuous water monitoring system (CWMS) with real-time monitoring of critical process data, such as dissolved oxygen and mixed liquor suspended solids (MLSS), the Company monitors effluent quality with accuracy and ensures regulatory compliance. To enhance water efficiency, FENC has implemented the ISO 46001 water efficiency management systems, maximizing resource reuse rates by integrating the analysis of water consumption per unit of production, utilizing reverse osmosis/membrane bioreactor reclamation systems and implementing rainwater recycling projects. As water supply risks emerge with extreme weather events, FENC has prepared itself with contingency plans for emergency water supply, including alternative water sources and inter-plant water networks as mutual aid. Through equipment replacement and upgrades, rigorous job qualification certification and emergency response assessments, FENC has built a high degree of operational resilience, which enhances water supply stability and environmental compliance management. |
Scenario for Risks and Opportunities
Scenario | SSP5-8.5 | NZE |
Type | Physical risks | Transition risks and opportunities |
Detail | The SSP5-8.5 scenario is presented in the IPCC’s Sixth Assessment Report (AR6) under the assumption of absence in climate actions from all countries, which would result in the highest CO2 concentration. It could be regarded as the most stringent climate scenario. Adopting this scenario would help FENC assess the degree of impacts under the most extreme climate challenges. | The NZE scenario is published by IEA. To limit the global temperature rise to 1.5 °C, the NZE scenario represents a path to net zero emissions by 2050 for the world and is considered the most extreme reduction scenario. As the surge of carbon reduction policies sweeps through the world, adopting the NZE scenario would help FENC gain competitive advantages by taking preemptive strikes. |
Parameter | Assuming the worst-case climate change scenario (SSP5-8.5), it is projected that by 2050, the average annual total precipitation in East Asia will surge by 15%, and the heaviest single-day precipitation will increase by 20% in intensity, accompanied by the occurrence of extreme weather events such as typhoons, floods and rainstorms. | Assuming the NZE scenario, carbon fees/taxes are levied across all sectors in all regions: By 2050, the carbon price will rise to US$250/tCO2e in advanced economies and US$200/ tCO2e in selected emerging markets and developing economies. |
Projected Temperature Rise by the End of This Century | >4℃ | ～ 1.5℃ (Consistent with the commitment under the Paris Agreement) |
Note: “Selected emerging markets and developing economies” is a regional category used in the International Energy Agency’s World Energy Outlook, which includes Brazil, mainland China, India, Indonesia and South Africa.
Processes for the Identification, Assessment, Prioritization and Monitoring of Climate-related Risks and Opportunities
The following sections further illustrate the systematic approach FENC has adopted to manage climate-related risks and opportunities. The implementation is divided into a four-pillar structure, including identification, assessment, prioritization and monitoring, as detailed below:
- Identification: Internal and external information is collected and applicable standards from the Sustainability Accounting Standards Board (SASB) are consulted to establish the list of climate issues in a systematic manner with continuous refinement.
- Assessment: FENC units, including the production sites within the reporting scope, convene to assess the likelihood and magnitude of financial impacts of climate-related issues within their respective industries through survey mechanisms.
- Prioritization: After consolidating and analyzing the surveys, results are ranked from high to low materiality with thresholds established as the basis for the preliminary screening of material sustainability issues. After the preliminary prioritization, actual operations and development directions are taken into account, and inter-departmental discussions are conducted as qualitative materiality judgements to supplement the quantitative results for the selection of material climate issues and related risks and opportunities, which are then submitted to the Sustainability Committee and the Board for approval.
- Monitoring: Changes in climate-related risks and opportunities are continuously monitored. The governance mechanism and management effectiveness are also regularly reviewed to make necessary adjustments and improvements in order to fortify FENC’s climate resilience and overall risk management performance.
To achieve systematic identification of climate-related risks and opportunities, FENC first identified climate-related issues from the SASB industry standards applicable to the chemicals industry. The International Financial Reporting Standards S2 Industry-based Guidance on Implementing Climate-related Disclosures is integrated to consolidate climate issues highly relevant to its operational activities, value chains and strategic development. During the preliminary identification stage, FENC also consults the Task Force on Climate-related Financial Disclosures (TCFD) framework, international sustainability ratings and guidelines, peer benchmarking practices, industry regulations, stakeholder feedback and additional international trends to compile the list of climate issues as the foundation for subsequent assessment and strategy formulation.
The list of climate issues covers all climate risk and opportunity factors listed by the TCFD. Among the issues identified during the first stage are climate litigation risks, licensing and regulation of existing products and services and the adoption of policy incentives. When identifying and analyzing climate-related risks and opportunities, descriptions of potential occurrences, such as the magnitude of operational impacts under a hypothetical extreme weather event, are also used as the basis for qualitative judgment to help the management understand potential impacts under various scenarios to prioritize risks and opportunities.
During the assessment stage of climate-related risks and opportunities, the magnitude of financial impacts and likelihood of each climate issue are taken into consideration, while the scale of FENC’s assets, revenue and operating costs are also considered as the basis for analysis. The likelihood and magnitude of financial impacts of each climate issue are assigned scores ranging from 1 to 5 and weighted with multipliers. The issues are then ranked based on the scores.
Identification Outcome of Material Climate Risks and Opportunities
Through survey mechanisms and analysis, FENC identified seven material climate risks and opportunities, which were determined by establishing a cumulative impact threshold of the top 75% and integrating the feedback of senior management with the approval of the Sustainability Committee and the Board.
Climate-Related Metrics and Targets
Indicators of Climate Targets | Target Type | 基準年數據 | 2025年度目標 | 短期目標 （-2030年） | 中期目標 （2031年-2035年） | 長期目標 （2036年-2050年） | |
Greenhouse Gas Emissions (Emissions Management) | Reduction in GHG Emissions (Scope 1 and 2) (2020 base year) | Absolute Target | 2,432ktCO2e | 30% Reduction | 50% Reduction | 60% Reduction | Achieve Net Zero Emissions by 2050 |
Reduction in GHG Emissions (Scope 1) (2020 base year) | Absolute Target | 1,272ktCO2e | 28% Reduction | 47% Reduction | 57% Reduction | Achieve Net Zero Emissions by 2050 | |
Reduction in GHG Emissions (Scope 2) (2020 base year) | Absolute Target | 1,160ktCO2e | 32% Reduction | 53% Reduction | 64% Reduction | Achieve Net Zero Emissions by 2050 | |
Greenhouse Gas Emissions (Sustainable Products) | Sustainable Products Revenue Ratio (percentage of production business revenue) | Intensity Target | - | 33% | 50% | 60% | 75% |
Energy Management | Reduction in Energy Consumption Per Unit of Production (2020 base year) | Intensity Target | 2.91GJ/metric ton of production | 10% Reduction | 20% Reduction | 25% Reduction | 40% Reduction |
Water Management | Reduction in Water Withdrawal Per Unit of Production (2020 base year) | Intensity Target | 2.98kiloliters/metric ton of production | 30% Reduction | 35% Reduction | 40% Reduction | 45% Reduction |
Number of Incidents of Non-Compliance with Local Regulations Regarding Water Pollution Control Operation Standards and Water Discharge Quality | Absolute Target | - | 0 | 0 | 0 | 0 | |
2025 Progress and Indicators for Climate Targets
Indicators of Climate Targets | 2025 Annual Target | 2025 Progress | 2025 Target Achievement Rate | |
Greenhouse Gas Emissions (Emissions Management) | Reduction in GHG Emissions (Scope 1 and 2) (2020 base year) | 30% Reduction | 40% Reduction | Achieved |
Reduction in GHG Emissions (Scope 1) (2020 base year) | 28% Reduction | 35% Reduction | Achieved | |
Reduction in GHG Emissions (Scope 2) (2020 base year) | 32% Reduction | 46% Reduction | Achieved | |
Greenhouse Gas Emissions (Sustainable Products) | Sustainable Products Revenue Ratio (percentage of production business revenue) | 33% | 41% | Achieved |
Energy Management | Reduction in Energy Consumption Per Unit of Production (2020 base year) | 10% Reduction | 8% Reduction | Not Achieved |
Water Management | Reduction in Water Withdrawal Per Unit of Production (2020 base year) | 30% Reduction | 28% Reduction | Not Achieved |
| Number of Incidents of Non-Compliance with Local Regulations Regarding Water Pollution Control Operation Standards and Water Discharge Quality | 0 | 0 | Achieved | |
Note: The disclosure of violations against local regulations is based on the list of “material information” referenced in the Taiwan Stock Exchange Corporation Procedures for Verification and Public Handling of Material Information of Securities Listed Companies. A single event resulting in pecuniary penalties of more than NT$1 million cumulatively shall be disclosed. Non-pecuniary penalties resulting in governmental orders of the suspension of work, suspension of business, termination of business, or the revocation or voidance of a permit pertaining to pollution shall be disclosed.
Climate Transition Plan
To address the risks and opportunities brought by extreme climate, FENC has designed specific and actionable climate transition pathways tailored to the operational models and emission structures of each Business. Based on key assumptions, including feasible carbon reduction technologies, the supply and demand of renewable energy and electricity emission factors, the Company has formulated a climate transition plan aligned with its mitigation and adaptation targets to support the short-, medium- and long-term reduction pathways that will ultimately lead to net-zero emissions. The Production Business focuses on improving energy efficiency, adopting low-emission fuels, incorporating renewable energy, developing CCU and transitioning to low-emission raw material structures. Through systematic process optimization and energy management, FENC is reducing process- and energy-related emissions while ensuring operational stability and cost control.
Climate Transition Plan and Action
Climate Transition Plan | Action |
|---|---|
Improve Energy Efficiency | FENC improves energy efficiency by optimizing the production process, facilities and energy management. Energy projects in the pipeline include new cogeneration systems, which capitalize on thermal and electrical power by recovering waste heat. |
Adopt Low-emission Fuel Alternatives | FENC’s short-term carbon reduction plan calls for substituting high-emission fuels, such as coal or heavy oil, with low-emission alternatives, such as natural gas and biomass fuels. The medium- and long-term plans are to replace natural gas with hydrogen fuels. |
Develop Renewable Energy | FENC is investing heavily in and installing a diverse range of renewable energy equipment and increasing the purchase of renewable electricity annually to boost its percentage in the Company’s energy mix. |
| Utilize CCU | The technology is utilized to convert carbon dioxide into usable products. The future plans will focus on the capturing and utilizing the carbon dioxide from the boiler exhaust. |
Foster Raw Material Transition | FENC adopts low-emission raw materials as alternatives, including recycled and biomass options. Leveraging its core technological advantages, the Company is developing environmentally friendly and low-emission materials and expanding the applications of these innovations. |
