Responsible Chemical Management

 

Responsible Chemical Management Strategy

Nan Pao is committed to chemical safety management and has implemented the ISO 14001 Environmental Management System and ISO 45001 Occupational Health and Safety Management System to establish a clear framework for employees to follow, ensuring efficient chemical management. All chemicals stored onsite are tracked through a chemical tracking system that monitors their locations and storage quantities in real time.

To uphold the principles of environmental friendliness and occupational health and safety―and to demonstrate a commitment to continuous improvement―Nan Pao regards chemical management as one of the core foundations of its development. At the product design and development stage, Nan Pao adopts a product life cycle perspective to assist customers in developing alternatives while adhering to international regulations (such as RoHS Directive, REACH Regulation) and restricted substances lists (such as MRSL, RSL). This approach aims to avoid using chemicals that pose potential risks to human health or the environment while minimizing employee exposure to chemical hazards.

 

At the facility level, the R&D, Quality Control, and Occupational Safety and Health departments at the headquarters and each production site serve as the core units for chemical management. A "Chemical Management Procedure" has been established to guide management across all stages of the chemical life cycle. This procedure starts with source control and extends to management during the introduction phase, with focused monitoring during on-site use.

We continuously monitor updates to chemical-related regulations issued by relevant authorities, assess their impact on our operations, and develop corresponding action plans to ensure that chemical handling at all sites complies with local laws. This ensures employee safety and health in chemical use.

During product distribution to customers, our Logistics and Customer Service departments collaborate on chemical management. Beyond providing high-quality technical services, we also fulfill our corporate social responsibility by ensuring the safety of chemicals during transportation and use. In 2024, no transportation-related incidents occurred.

 

Chemical GHS Classification

In accordance with the United Nations' Globally Harmonized System of Classification and Labeling of Chemicals (GHS), we adopt internationally recognized and easy-to-understand hazard communication frameworks to promote safe chemical use and enhance protection of human health and the environment. GHS covers physical, health, and environmental hazards, aiming to raise awareness of chemical hazards in the workplace, reduce the need for chemical testing and evaluation, and facilitate safe international trade.

At our Taiwan headquarters, 100% of our products have undergone hazard risk assessments, and all subsidiaries continue to conduct product evaluations according to this standard. In 2024, products classified as GHS Hazard Category 1 accounted for 16% of total revenue, while Category 2 products accounted for 33%―a combined total of 49%, representing a 4% decrease from 2023 and marking a fourth consecutive year of decline.

We actively and prudently manage the handling, use, and final disposal of such chemicals, incorporating them into annual site emergency response drills. Through scenario planning and response exercises, we ensure that employees are familiar with timely and proper control measures in different situations, thereby keeping the consequences of any incident within acceptable risk levels. These measures demonstrate our commitment to environmental protection and employee safety, and our ongoing efforts to promote best practices in chemical management in pursuit of sustainable development.

In 2024, all Nan Pao products were 100% compliant with international regulations on hazardous substances, including REACH and RoHS.

 

Chemical Risk Assessment

Nan Pao Resins adopts the four-step risk assessment framework recommended by the International Council of Chemical Associations (ICCA) to evaluate the use of all chemicals:

·       Hazard Identification: Collecting and reviewing the physicochemical properties, stability, and reactivity of chemicals to identify potential physical or chemical hazards.

·       Hazard Characterization: Analyzing toxicological and ecological characteristics, including acute toxicity, dermal and inhalation hazards, irritation, and long-term bioaccumulation, followed by classification.

·       Exposure Assessment: Evaluating potential exposure pathways and concentrations during actual operations or product applications, with reference to international occupational exposure limits.

·       Risk Characterization: Integrating hazard and exposure data to determine whether the risks fall within acceptable levels, and developing or strengthening control measures such as operating procedures, engineering protections, employee training, and emergency response plans.

 

Commitment to Hazardous Substance Management

Nan Pao Resins is committed to chemical safety and sustainable development. The company has implemented ISO 14001 and ISO 45001 management systems to establish a comprehensive chemical management framework that spans the entire product life cycle, from design and development to manufacturing, transportation, use, and disposal. We comply with international regulations such as RoHS, REACH, and the Restricted Substances List (RSL), and go beyond compliance requirements to minimize risks from hazardous substances to human health and the environment.

·       Management Mechanism: Conducting chemical hazard risk assessments, applying GHS classification and labeling, and monitoring the supply chain to ensure effective control of high-risk substances.

·       Industry Collaboration: Actively participating in industry associations to exchange information and develop solutions for alternative substances.

·       R&D Investment: Continuously developing alternative materials and adjusting formulations to promote substitution of hazardous substances and foster material innovation.

·       Transparency: Disclosing progress and results on the company website and in the annual sustainability report for stakeholder review and oversight.

·       Long-term Target: In 2021, Nan Pao set a target to substitute and phase out substances regulated under the EU RSL by 50% across all products by 2030. By 2024, usage had already been reduced by more than 50% compared with 2021 levels.