An Advocate of Environmental Friendliness

Climate change has emerged to become one of the most critical issues in the 21st century. Extreme weather, floods, and droughts in recent years have prompted government agencies, businesses, and private organizations to undertake more active mitigations of the risks. Meanwhile, Kaori contributes its part to environmental protection and social values by enforcing energy management throughout its operations and by investing into the research and development of new materials and production procedures. A Carbon Management Committee has also been assembled to oversee GHG reduction, energy/resource conservation, water conservation, waste recycling, and mitigation of environmental impact. At the same time, Kaori continues to invest into environmental protection facilities and incorporate green management and energy conservation practices into business activities for sustainable growth.

Carbon Management Plans for CBAM

The European Union expects to enact the “Carbon Border Adjustment Mechanism (CBAM)” in 2023 as a support for the world's first “carbon tax” scheme, whereas the US is also introducing its Clean Competition Act (CCA). Kaori plans to introduce product carbon footprint (ISO 14067) in the third quarter of 2022 and obtain 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. Furthermore, the Company has been making use of the export carbon reduction counseling service offered by the Taiwan External Trade Development Council since November 2022 and completed analysis of the composition of key products and raw materials exported to Europe and the US in order to establish a preliminary understanding of the carbon reduction controls implemented in the two markets. According to the opinions of the consultancy team, stainless steel—a raw material used in brazed plate heat exchangers—is one of the controlled materials outlined in the EU's CBAM, whereas the equipment and raw materials used in the production of external casings for fuel cells are not regulated by the US CCA. Based on this knowledge, the Procurement Center is currently coordinating with raw material suppliers in the upstream to explore ways to reduce carbon.

Plans for Green and Renewable Energy Sources

The net zero movement has become the world's most important issue today, and all leading businesses with strong sustainability awareness are starting to adopt green energy as the first step. The 744.51 kW commercial rooftop photovoltaic system installed at Kaori's Kaohsiung Benzhou Plant began production in September 2022. It is expected to generate 18,448,369 kWh of green power over 20 years to reduce 9,390 tonnes of CO2 emissions, which is 23 times the CO2 absorption capacity of Da'an Park. The amount of power generated between September and December 2022 was approximately 1.06% of the total energy usage for the year. The Company continues to promote energy transformation as a way to reduce GHG emissions and contribute to Earth's environment.

2022 Sustainable Highlights Performance

The carbon intensity has decreased compared to 2021.

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The power intensity has decreased compared to 2021.

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The electricity cost savings amount has increased compared to 2021.

Actively engage in energy-saving and carbon reduction initiatives, continuously implement projects focusing on electricity conservation, energy efficiency, and carbon reduction.

Energy Transition

Successfully assisted a European heat pump manufacturer in developing heat pump heaters to replace natural gas boilers, promoting energy transition. Introduced the Z085D, the smallest dual-circuit counterflow plate heat exchanger on the market. Featuring high pressure resistance, compact size, environmentally-friendly refrigerants, microchannel design, and simplified external connection pipelines, this product offers outstanding performance.

Innovative Research and Development

Deeply invest in and research energy-saving, carbon reduction, and green energy products, aiming to become a key supplier in the low-carbon technology and circular economy industry chain. Acquired the Taiwan invention patent for the "Device and Method for Organic Waste Liquid Deontology and Reuse," showcasing a commitment to sustainable innovation in waste management and resource utilization.

Our Focus Issues

01
Management of Climate Change Risks and Opportunities (TCFD)

To closely monitoring climate change, Kaori has made climate change one of the major issues for sustainable development and taken the initiative to disclose relevant information according to the requirements of the report preparation guidelines mentioned above. Through inter-departmental communication, discussions are made on the possible scenarios, the likely impacts, and the timing of impacts on Kaori. Each of the scenarios identified is further evaluated to facilitate proper control and response to the associated risks and opportunities. By adopting a more pro-active governance approach toward climate change, Kaori takes pragmatic steps to fulfill its sustainability vision.:

List of identified climate change risks

List of identified climate change opportunities

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02
GHG Management

Kaori passed ISO 14064-1:2018 Greenhouse Gas Inventory certification of SGS Taiwan Ltd. (SGS) on August 10, 2022, and obtained certificate for ISO 14064-1:2018 that indicated 100% attainment rate. Furthermore, the subsidiary in Ningbo, China, has made plans to initiate its own inventory in sync with the parent company starting from 2023.

Greenhouse Gas Inventory

The Company conducts greenhouse gas inventories covering all plant sites in Taiwan in a manner that conforms with the ISO 14064-1:2018 standards. By developing a comprehensive understanding of greenhouse gas emissions, the Company is able to set short-/medium-/long-term reduction goals to guide reduction efforts. Scope 1 and Scope 2 emissions aggregated to 7,762.9435 tonnes of CO2e in 2022; the carbon intensity was 17% lower compared to 2021.

GHG Emissions

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03
Environmental and Energy Management

Kaori (Kaohsiung Benzhou Plant) passed certification for ISO 14001 Environmental Management System in 2019. From greenhouse gases, air pollution, and effluent discharge to waste treatment, Kaori is fully committed to making improvements and minimizing environmental impact. As a result, no major violations of environmental regulations have occurred in the year of the report.

Environmental Policy

Energy Management

The Company introduces new energy conservation measures on a yearly basis, such as purchasing energy-efficient models, replacing outdated machinery, and optimizing production schedules. Kaori draws on the wisdom of many to achieve energy and carbon reduction goals. In the future, more attention will be directed toward improving production procedures and reducing energy consumption and promoting Kaori as a green, sustainable business. Electricity intensity was lowered by 16.9% in 2022 compared to 2021.

Management goals and attainment:

  • 1% energy conservation:
    The Company's vacuum furnace capacity enhancement project aims to increase production capacity of each furnace by at least 50%, which has the potential to reduce excess vacuum furnace cycles and operating time by at least 50%, thereby lowering the cost of electricity and the volume of energy used in production.
  • Saving of energy in lighting:
    Stair areas and motorcycle parking areas are installed with sensor tube lights; plant workers turn off lights during lunch hours and break times.
  • 1% waste reduction:Kaori recycles and reuses 100% of its protective materials and containers.
  • The Kaohsiung Plant has set goals to reduce gasoline and diesel by 5% from the previous year.

Energy Conservation Targets

Energy Efficiency and Electricity Intensity

Power Conservation Rate by Plant

All plant sites comply with the laws of the Bureau of Energy, Ministry of Economic Affairs. As a major energy user that Taiwan Power Company has signed a contract with to supply at least 800 kW of power, the Company reports annual energy performance and improvement plans in accordance with Article 9 of the Energy Administration Act. The Company has set goals to achieve an “annual power conservation rate” or “average annual power conservation rate” of more than 1%. The Zhongli 2nd Plant and Kaohsiung Benzhou Plant have appointed dedicated energy management officers to enforce energy conservation plans and achieve an average annual power conservation rate of more than 1%.

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04
Air Pollution and Water Resource Management

Air Pollution Management

Kaori did not emit any nitrogen oxide (NOx), sulfur oxide (SOx), or other gases of significant impact.

Water Resource Management

Kaori has developed an environmental management system along with water resource management practices based on ISO 14001. Through data monitoring, the Company keeps track of water used as well as the water resource management practices adopted at various plant sites on a daily basis. Any abnormal change in water volume is met with appropriate inspection and response. Meanwhile, Kaori organizes campaigns from time to time to promote employees' awareness of the conservation and use of water.

All major operating sites draw water entirely from the municipal water supply system (i.e., tap water). Most of the water drawn is used for employees' living activities and kitchen equipment, and any effluents generated from living activities are either treated using appropriate treatment facilities or discharged into the municipal water treatment system, and therefore should have no significant impact on the local water body. Furthermore, Kaohsiung Benzhou Plant has installed its own water treatment facilities to treat wastewater in a legal manner. No incidents of illegal pollution occurred in 2022, and the Company's business activities had no significant impact on water sources.

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05
Waste Management

Kaori observes the ISO 14001 standard and has created a dedicated unit to track the sources and volumes of waste and adopted waste management practices that aim to maximize resource utilization and minimize waste generation. All departments are committed to minimizing waste volumes from production activities, increasing the life cycles of raw materials used, and promoting circulation and reuse of resources and waste for total waste reduction. Kaori engages qualified service providers to dispose of waste and uses appropriate forms to audit waste handlers, thereby ensuring the appropriateness of waste treatment and that the waste generated does not pose a significant impact on the nearby environment. There were no violations of environmental laws in 2022.

Waste Reduction Measures

Kaori reduces the volume of waste by recycling waste iron, carton boxes, and waste glass and reusing waste pallets. Waste pallets are handed over to qualified service providers for reuse, thereby minimizing environmental impact. Driven by the mission of a responsible producer, Kaori duly reports how waste generated from plant sites is handled and retains complete documents to ensure that waste is properly treated.

  • Establishment of employee cafeterias and use of environment-friendly tableware
  • Total recycling of paper containers
  • Use of kitchen waste recycling bins
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An Advocate of Environmental Friendliness ESG Report