External Advocacy
Nan Pao's Net-Zero Emission Commitment
Nan Pao is committed to achieving carbon neutrality by 2050. To support this target, the Company has established a carbon-neutrality roadmap that maps out its future mission and responsibilities. This roadmap aligns with national policies, supports the low-carbon transition, and is consistent with the objectives of the Paris Agreement.
Governance Structure for Public Engagement
Membership in public and industry associations is first reviewed by senior management of each business unit, and then submitted to the CEO for approval. The Sustainable Development Office regularly evaluates whether participation aligns with Nan Pao's sustainability goals and policies, reporting results to the CEO.
Process for Climate-Related Lobbying and Industry Association Participation
Nan Pao has implemented a management system to monitor all sites' involvement in climate-related lobbying and participation in industry associations. Through rigorous assessment and oversight, we ensure that our public climate actions align with our sustainability goals and the Paris Agreement. We regularly review the industry associations we participate in, paying particular attention to those addressing climate change. Through a clearly defined monitoring process, we assess whether these associations' positions and activities align with the Paris Agreement. If discrepancies arise, we initiate dialogue and coordination to ensure alignment with Nan Pao's climate objectives. If alignment is not achieved within two years, Nan Pao will withdraw from the associations.
Direct Lobbying
In 2025, Nan Pao did not engage in any direct lobbying activities related to climate change.
Industry Association
Nan Pao is a member of various industry associations, with close attention to those engaged in climate-related initiatives.
| Association Name | Evaluation |
|---|---|
| bluesign® SYSTEM PARTNER | Promotes environmental responsibility within the textile and apparel industry by prioritizing actions such as reducing greenhouse gas emissions, enhancing energy efficiency, and utilizing renewable energy. Strengthens transparency and consumer education, aiming to achieve carbon neutrality by 2050. |
| Stichting ZDHC Foundation Signatory | Committed to reducing hazardous chemicals in fashion and textile production processes, aiming to enhance supply chain transparency and ensure environmental safety and labor protection across industries. Dedicated to the sustainable development of overall business operations. |
| E.SUN ESG Sustainability Initiative | A public advocacy initiative actively integrating ESG principles to mitigate environmental impact, aligning with the goal of achieving carbon neutrality by 2050, and strengthening Taiwan's competitiveness in the sustainable finance sector. |
| SATRA Technology | Promotes the use of environmentally friendly and low-carbon materials, assisting in ensuring products meet environmental standards. Encourages the reuse and recycling of materials to reduce resource consumption. |
| Taiwan Synthetic Resins & Adhesives Industrial Association | Facilitates the development and exchange within the synthetic resin and adhesive industry. Provides technical support to members, conducts industry training, and organizes exhibitions to share trends in carbon reduction. Assists enterprises and SMEs in transitioning towards sustainable development. |
| Association of Taiwan Bio-based and Sustainable Material Industry | Promotes the development and application of bio-based and sustainable materials, facilitates resource circulation and low-carbon technology innovation, strengthens the industry's sustainability and resilience to climate change. |
Major Contributions and Expenditures in 2025 for Political Activities, Industry Associations, and Tax-Exempt Organizations
Unit: NT$ thousand
| Organization | Type | Description | $ |
|---|---|---|---|
| bluesign® SYSTEM PARTNER | Industry Association | As a bluesign® SYSTEM PARTNER, we are committed to sustainable textile production, ensuring our processes and materials meet stringent environmental and safety standards. Through collaboration with bluesign, we strive to minimize our environmental footprint, enhance resource efficiency, and promote transparency throughout the supply chain. | 1,675 |
| ZDHC (Zero Discharge of Hazardous Chemicals) | Industry Association | ZDHC is a global initiative aimed at eliminating hazardous chemicals from the textile, leather, and footwear industries. Our active participation in ZDHC demonstrates our commitment to reducing the discharge of harmful substances and supporting sustainable practices. Through engagement with the ZDHC program, we continuously optimize our chemical management processes to align with industry standards, fostering safer products and contributing to a healthier future for consumers and the environment. | 678 |
| Association of Taiwan Investment Enterprises on the Mainland (ATIEM) | Industry Association | The association is dedicated to supporting Taiwanese enterprises investing in Mainland China, providing a platform for communication and collaboration, promoting resource sharing, and advocating for policies conducive to business development. By participating in ATIEM, we stay informed about cross-strait economic trends and actively engage in relevant discussions to advance the development and interests of Taiwanese businesses in Mainland China. | 518 |
| Total | 2,871 | ||
The following outlines Nan Pao's contributions and expenditures for political activities, industry associations, and tax-exempt entities in 2025
Unit: NT$ thousand
| 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|
| Lobbying and Interest Groups | 0 | 0 | 0 | 0 | 0 |
| Political Activities and Candidates | 0 | 0 | 0 | 0 | 0 |
| Chambers of Commerce, Associations, and Tax-Exempt Organizations | 191 | 1,109 | 7,426 | 5,293 | 5,733 |
| Other | 0 | 0 | 0 | 0 | 0 |
| Total | 191 | 1,109 | 7,426 | 5,293 | 5,733 |
Note: The statistical data presented in this report covers Nan Pao Taiwan in 2021. Starting from 2022, the scope of the statistical data expands to encompass the entire Nan Pao Group.
Government Subsidies Received in 2025
Unit: NT$ thousand
| Country | Item | Granting Authority | $ |
|---|---|---|---|
| China | Industrial Guidance Fund | Management Committee of Jiangsu Huai'an Economic and Technological Development Zone | 23,688 |
| China | Value-Added Tax Credit | LePing Tax Bureau, Sanshui District, Foshan City | 8,465 |
| China | Job Stabilization Subsidy | Jiangsu Provincial Human Resources Service Administration Center Employment Security Fund | 429 |
| China | Corporate Innovation Funding | Finance Bureau of Changshu Economic and Technological Development Zone | 686 |
| Taiwan | Exhibition Fees for Taipei Innovative Textile Application Show 2025 | Southern Taiwan Textile Research Alliance | 148 |
| Total | 33,416 | ||
Nan Pao Carbon Neutral Roadmap
Since 2022, Nan Pao has implemented a comprehensive GHG inventory process across all production facilities in accordance with the ISO 14064-1 standard. The Company quantifies and analyzes carbon emissions from its operating plants, identifying key emission sources and assessing energy and resource consumption throughout its processes. Concurrently, Nan Pao has expanded the installation of renewable energy generation systems and, where appropriate, purchases renewable energy certificates. The Company has launched and is actively implementing GHG reduction initiatives, while also exploring the feasibility of energy recycling and reuse projects.
Nan Pao is committed to achieving net-zero emissions by 2050, with a target of reducing Scope 1 and Scope 2 greenhouse gas emissions by 90% using 2022 as the base year, while continuing to advance decarbonization efforts across the Scope 3 value chain. To fulfill this commitment, the Company is actively pursuing a range of decarbonization initiatives.
| Carbon Reduction-Related Actions | |
|---|---|
| Scope 1 | The Company has actively reduced direct greenhouse gas emissions by transitioning diesel-powered equipment to electric models. Additionally, we have implemented systems to recover waste heat from boilers and reintegrate it into our production processes, thereby reducing the use of natural gas. |
| Scope 2 | To address indirect emissions from purchased electricity, we have upgraded plant equipment to energy-saving models and installed solar power generation systems on-site. |
| Scope 3 | Scope 3 emissions account for approximately 90% of Nan Pao's total greenhouse gas emissions. Accordingly, we are committed to reducing emissions from purchased raw materials by prioritizing the use of bio-based or low-carbon materials to replace high-carbon-emission alternatives. We continuously develop and promote environmentally friendly, low-carbon, high-performance products and building solutions that align with sustainability goals. |
For residual emissions, Nan Pao will adopt diverse neutralization and offset measures, including the purchase of carbon credits and investment in permanent carbon removal technologies, to ensure the full realization of its 2050 net-zero emissions commitment.
In addition, Nan Pao also began to implement adjustments to its product portfolio, accelerating the development and deployment of low-carbon chemical manufacturing processes through process and technological innovation and the selection of low-carbon raw materials. In addition, by inventorying the materials and manufacturing processes used in products, the Company established systematic management tools and procedures to ensure the transparency and integrity of the data flow for product carbon footprint, and thereby formulated product carbon reduction plans to drive the value chain and the overall industrial ecosystem to jointly reduce carbon. For the progress of Nan Pao's green products initiatives, please refer to Section 4.2.
Nan Pao's medium- to long-term target is to replace traditional fossil fuels with renewable energy and continue to innovate technologies. Technological innovation relies on long-term development and research investment with external partners and is expected to be realized gradually after 2030. Before then, in order to effectively manage greenhouse gas emissions, Nan Pao will continue to comprehensively optimize its product manufacturing processes.