Dual International Carbon Management Certification
The world's first plate heat exchanger manufacturer to receive a dual certification of ISO 14064-1 for greenhouse gas inventory and ISO 14067 for carbon footprint from a third party.
Climate change is one of the environmental issues currently of concern to the United Nations, governments, society, and the business community. Kaori, in accordance with the 2019 Task Force on Climate-related Financial Disclosures (TCFD) Recommendations established by the International Financial Stability Board, has set the following governance, strategy, risk management, and metrics and targets for the company, as outlined in the table below:
In response to climate change issues, Kaori has set the following short, medium, and long-term environmental management metrics, as outlined in the table below:
Material issue objectives and performance
Kaori is committed to fulfilling its environmental responsibility and becoming a sustainable business with continuous improvement. In line with the short-, medium-, and long-term energy-saving and carbon reduction metrics and related implementation plans mentioned above, we have set and achieved performance goals over the past two years (as shown in the table below) to reduce potential impacts on society and the environment.
2023 Sustainable Highlights Performance
ISO 14064-1 GHG Verification
0 %
Non-compliance with environmental laws and regulations
0 Cases
0%
Energy-saving digitalization in the manufacturing process
Smart meters have been installed on major production equipment in the Kaohsiung Plant, and the installation rate has reached 80%.
Carbon Density
The carbon intensity was 33.50% lower compared to 2022.
Energy Conservation
In 2023, five energy-saving measures were implemented, resulting in a total electricity savings of 1,171,554 kWh, with a financial benefit amounting to NTD 2,664,258.
Our Focus Issues
01
Environmental Policy and Commitment
In terms of environmental policy, Kaori is committed to fulfilling its environmental protection responsibilities and becoming a sustainable enterprise through continuous improvement:
Kaori has established an appropriate environmental management system in accordance with ISO 14001:2015 (Figure 1) and set up a dedicated unit to take charge of environmental management and maintenance. Evaluate the environmental pollution considerations across the product life cycle, and continuously improve the environmental system through internal management practices to reduce negative impacts, aiming to contribute to environmental protection. In response to climate change and energy supply risks, Kaori actively identifies climate change risks such as floods, droughts, typhoons, power outages, and water shortages.
In addition, we have introduced the ISO
14064-1:2018 Greenhouse Gas Checklist
Statement (Figure 2) to regularly control
the impact and damage to operations
caused by extreme weather. We have
formulated climate risk adjustment policies
and focused on controlling oil/oil with high
carbon emissions, actively implementing
relevant measures and solutions to reduce
carbon emissions.
In 2023, the Company did not violate
environmental protection laws and
regulations resulting in penalties from
regulatory authorities.
02
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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03
Environmental and Energy Management
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.
Energy Management and Goals
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 33% in 2023 compared to 2022.
Kaohsiung Plant Management Goals and Achievements
- 1% energy conservation: The Company's vacuum furnace capacity enhancement project aims to increase the 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.
- Reduced waste by 1%: Kaori recycles and reuses 100% of its protective materials and containers.
- Set an environmental goal to reduce the total usage of gasoline and diesel by 5% compared to the previous year. This goal was not achieved in 2023.
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 Plant 2 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
GHG Management
Since 2021, Kaori has been implementing the ISO 14064-1:2018 greenhouse gas inventory standard. For the second consecutive year, Kaori has passed SGS Taiwan Industrial Services Ltd.'s third-party inspection and verification with a 100% achievement rate. Furthermore, the subsidiary in Ningbo, China, has made plans to initiate its own inventory in sync with the parent company starting from 2024.
2023 greenhouse gas inventory operation status
The inventory is carried out in accordance with the ISO 14064-1:2018 greenhouse gas inventory standard and specification. The boundary scope covers all factory areas in Taiwan, with a total of five factory areas. The internal verification was completed from May 8 to May 9, 2024, and the external verification will be completed in the third quarter of the same year. Based on the results of internal verification, the total emissions for Scope 1 and Scope 2 emissions aggregated to 7,769.4688 tCO2e in 2023; the carbon intensity was 33.50% lower compared to 2022.
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05
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 2023, and the Company's business activities had no significant impact on water sources.
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06
Waste Management
Kaori observes the ISO 14001 standard and has created a dedicated unit to track the sources and volumes of waste. Adhering to the principles of maximizing resource use and minimizing waste generation, the Company promotes "Waste Management Measures." All departments are committed to minimizing waste volumes from production activities, increasing the life cycles of raw materials used, and promoting the 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.
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. Upholding the principle of responsibility, 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
- No hazardous waste; domestic wastes are disposed of in accordance with the law
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Sustainable Environment ESG Report
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.
