Message from the Chairman

Message from the Chairman

KAORI - Go For Sustainable Future 

Supporting Global Green Transformation in Professionalism

The Company has been dedicated to the development of energy-related technologies since it was founded in 1970, using innovative energy technologies as a way to change the world. This mission is what has been driving our investments in the past, which we intend to continue doing in the future. Apart from digital transformations, we will also commit greater efforts to ESG and strive to accomplish sustainability goals by adopting new management mindsets and making optimal use of R&D capacity.

2022 has been an extremely challenging year for Kaori. From the spread of COVID-19 in the first half to the escalation of the Russia-Ukraine war in the second half, the Company was tested time and time again for its capacity to keep up with the increasing demand for heat supply and energy-saving equipment, as well as its ability to manage risks associated with carbon taxes and cross-strait tensions. Kaori's sustainability efforts in 2022 were driven by three main themes, namely “low carbon and emissions, people-centered, and sustainability”:

Environmental (E)

In the environmental (E) aspect, we have placed emphasis on reducing emissions in our operations and adopted low-carbon practices. Our most prominent accomplishments during the year were the successful introduction of ISO 14064-1 Greenhouse Gas Inventory standards and obtaining verification from SGS Taiwan Ltd. (SGS), a third-party institution, ahead of the timeline stipulated by laws. In 2022, GHG emissions per unit of revenue were down 17% compared to the previous year. Furthermore, in response to the EU's Carbon Border Adjustment Mechanism (CBAM), the Company has been making pro-active use of the export carbon reduction counseling service offered by the Taiwan External Trade Development Council, and completed analysis of the composition of key products and raw materials exported to Europe and the US. After establishing a preliminary understanding of the carbon reduction controls implemented in the two markets, we devised two main action strategies. Strategy 1: Introducing product carbon footprint (ISO 14067) in the third quarter of 2022 and obtaining certification by the end of 2023. Once reliable data has been established, the Company will be able to devise carbon footprint reduction plans based on the emissions of a product's entire life cycle to conform with CBAM requirements. Strategy 2: Exploring energy-saving solutions for the vacuum furnace, a key piece of production equipment, to reduce the carbon emissions of the production process. Carbon reduction measures are being introduced to various parts of our operations, such as the use of environment-friendly tableware, air conditioning temperature adjustment, digital correspondence, digital signatures, and turning off unnecessary lighting. With respect to renewable energy, the 744.51 kW commercial rooftop photovoltaic system installed at Kaohsiung Plant began production in September 2022, which will enable the plant to power its own operations at times of electricity supply coordination in the future.

Social (S)

In the social (S) aspect, we have been adjusting our management approach in recent years to pay attention to human rights issues, following rising awareness for social and human rights topics. With regards to employee care, we hope to introduce and obtain certification for the ISO 45001 Occupational Health and Safety Management System as a way to enhance workplace safety and protect the physical and mental health of every Kaori employee. As for social care, Kaori encourages employees to take part in social, environmental, and charity activities with family members to make a greater impact.