Kaori Strengthens ESG Leadership with Verified Carbon Reporting & Industry-First Human Rights Due Diligence

Kaori Heat Treatment Co., Ltd. (Stock Code: 8996.TW) has released its latest Sustainability Report, marking three consecutive years of ISO 14064-1 greenhouse gas inventory and third-party verification. In parallel, Kaori leads the heat treatment and metal processing industry as the first to complete comprehensive Human Rights Due Diligence (HRDD), reinforcing its dual commitment to environmental responsibility and human rights as cornerstones of sustainable transformation. The company continues to pursue a balanced ESG strategy advancing carbon neutrality and social justice.

Three Years of Carbon Verification: Institutionalized Carbon Management in Action

Since launching its greenhouse gas inventory in 2021, Kaori has achieved three consecutive years of third-party verified results, expanding coverage to both domestic and international sites, including its Ningbo facility in China. With institutionalized carbon management and cross-functional collaboration, the company has identified major Scope 1 and Scope 2 emissions and continues to drive energy efficiency, renewable energy adoption, and product carbon footprint evaluations—building a solid foundation for its long-term carbon neutrality goals.

Industry-First Human Rights Due Diligence: Aligning with Global ESG Standards

Kaori is the first company in Taiwan's heat treatment and metal processing industry to complete Human Rights Due Diligence (HRDD), aligned with the UN Guiding Principles on Business and Human Rights (UNGPs). The assessment included risk identification, employee surveys, and expert consultations across its entire workforce, including migrant workers. It addressed key issues such as workplace safety, labor conditions, anti-discrimination, and mental health. The report details Kaori's human rights governance framework, corrective actions, and monitoring mechanisms, underscoring its commitment to placing respect for people on par with environmental responsibility in its ESG strategy.

Three Key Achievements Strengthen Resilient ESG Governance
The current report discloses several major ESG achievements, reinforcing Kaori's strong execution capabilities and global competitiveness: 

• International Recognition: In 2024, Kaori earned a "B" rating from the Carbon Disclosure Project (CDP)—the highest among SMEs—recognizing its leadership in climate risk management and transparency. 
• Renewable Energy Expansion: Kaori has installed over 1.2 MW of rooftop solar capacity across its Zhongli, Ziqiang, and Kaohsiung facilities, steadily increasing green energy output and delivering measurable carbon reduction benefits. 
• Human Rights Governance: With company-wide HRDD now in place, Kaori plans to extend due diligence to its supply chain, strengthening overall resilience and stakeholder accountability.