ESG Management

Sustainable Development Blueprint of NANPAO

NANPAO has determined 2021 to be the first year of sustainability for the Company. In accordance with the vision and mission of the "Sustainable Development Committee Charter", the Company has designated the Sustainable Development Committee as the highest level decision making center for ESG and is chaired by the Chairperson. Whereas, the "ESG team" comprises senior executives of different areas and multiple professional background, reviewing the core operational capabilities of the Company collectively, establishing short, medium and long-term ESG development directions and fostering the core competitive advantage of NANPAO concertedly.

Achieving SDGs

For the stiff challenges facing all humanity, NANPAO is keen to achieve Sustainable Development Goals (SDGs). Under the leadership of the Sustainable Development Committee, NANPAO has established four sustainability policies and selected nine main Sustainable Development Goals (SDGs). The ESG team takes charge in coordinating cross-departmental resources and forces, and formulating 18 measurable and time-sensitive long-term goals to incorporate SDGs into the organizational culture and routine operational activities. The team collaborates with internal and external stakeholders to consistently explore and research on governance/economic, environmental and social development opportunities so as to co-create values and share a sustainable future.

Circular Economy	Social Inclusivity
Water resource management and reuse water Powder coating for water pipes provides higher quality and sustainable tap water Using recycled carbon dioxide derivatives as raw materials, it has excellent flexibility and breathability. Recycling and reusing of solvents and waste. ( Degradable) Products and chemicals of circular economy. Recycle and reuse of material resources, sustainable packaging, etc.( packaging materials, etc.)	Community building : After-class tuition, chemical courses, environmental courses Environmental protection and public welfare : Enhance the passion and number of facets of employee participation Prioritize providing job opportunities for community residents Industry-academia collaboration Provide building materials and funds for infrastructure repairs
Low-carbon Mission	Co-creation of Value
ISO50001 energy management system and measures to reduce energy consumption Installation of renewable energy equipment Low carbon products (reduce production processes, eco-friendly raw material, etc.) Collaborating with upstream and downstream partners to promote sustainable projects	Strengthen sustainability connection with strategic partners Supplier chain management on environment and social aspects Co-procurement management implement Task Force on Climate-Related Financial Disclosures (TCFD)

Sustainable Investment

In 2023, our company invested NT$47,552 million in energy-saving and environmentally sustainable machinery and equipment. The total benefits include saving 864,204 kWh of electricity annually, reducing waste by 8,500 tons per year, and a carbon reduction of 17,749 tons per year. The details are as follows:

1. Energy management

The establishment of self-use solar power generation equipment enables a reduction in electricity consumption by 205,860 kWh, resulting in an annual decrease of 103 metric tons in carbon emissions.

2. Equipment Efficiency Improvement

(1) Optimization of the production line chiller system main equipment to enhance cooling efficiency and improve product quality, resulting in a savings of 25,344 kWh of electricity usage annually and a reduction of 13 metric tons of carbon emissions per year.

(2) Implementation of an energy management and power-saving system in the factory area to enhance voltage stability and maintain stable equipment operation, resulting in a savings of 633,000 kWh of electricity usage annually and a reduction of 318 metric tons of carbon emissions per year.

3. Reduction in Process Waste Generation

We have implemented a distillation system to recycle solvents used in the manufacturing process, allowing us to reintroduce recovered solvents back into the production cycle, specifically acetone for reuse in the process and butanone for tank cleaning. This initiative serves to reduce the on-site storage of waste solvents and minimize the need for purchasing additional raw materials, resulting in a significant reduction in annual waste output by 8,500 tons and a corresponding decrease in carbon emissions by 17,315 metric tons.