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.
2025 Sustainable Highlights Performance
CDP Management Level B
0 %
ISO 14064-1 GHG Verification
0 %
0Cases
Non-compliance with environmental laws and regulations
In 2025, the Company did not violate environmental protection laws and regulations resulting in penalties from regulatory authorities.
Carbon Density
In 2025, the figure decreased by 31.28% compared with 2024.
Energy Conservation
In 2025, electricity savings reached 59,480.53 kWh, resulting in cost savings of NT$280,961.
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 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 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 2025, 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
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
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. Energy intensity was lowered significantly by 30.40% in 2025 compared to 2024.
Energy Efficiency and Energy Intensity Performance Over the Past Three Years
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 1 and Kaohsiung Plant have appointed dedicated energy management officers to enforce energy conservation plans and achieve an average annual power conservation rate of more than 1%.
04
Investments in Energy Conservation and Green Energy
New Investments in Energy Conservation and Green Energy in 2025
To continuously promote energy transition and low-carbon operations, the Company made a new investment in a rooftop solar photovoltaic (PV) power generation system, with a total installed capacity of 472.05 kW and a total investment of NT$18,169,912. The system commenced commercial operation on April 24, 2025.
Equipment and Investment Amount
- Equipment: Rooftop solar photovoltaic power generation system
- Installed Capacity: 472.05 kW
- Investment Amount: NT$18,169,912
Quantifiable Benefits of Energy Conservation and Carbon Reduction (Estimated Over a 20-Year Service Life)
- Renewable Energy Generation: Approximately 10,471,615 kWh of green electricity
- Greenhouse Gas Emissions Reduction: Approximately 5,183 metric tons of CO₂e, calculated using an electricity emission factor of approximately 0.495 kg CO₂e per kWh.
- Equivalent to the Annual Carbon Absorption of Trees: Approximately 431,954 trees, based on an estimated annual carbon absorption of approximately 12 kg CO₂e per tree.
- Equivalent Fuel Savings: Approximately 2,617,904 liters of fuel, based on an estimated fuel substitution rate of approximately 0.25 liters per kWh of electricity generated.
- Equivalent to the Annual Carbon Absorption of Daan Forest Park: Approximately 14 times the annual carbon absorption capacity of Daan Forest Park, based on an estimated annual absorption of approximately 387 metric tons of CO₂e per park.
- Equivalent to the Electricity Consumption of 20W Fluorescent Lamps: Approximately 23,270 lamps, based on monthly electricity consumption of 3.75 kWh per lamp and a service life of 10 years.
- Estimated Renewable Energy Certificates (T-REC): Approximately 10,471 certificates, with a potential economic value of approximately NT$41,884,000.
Sustainability and Operational Benefits
- Renewable Energy Development and Climate Risk Management
In response to global trends toward net-zero emissions, the Company is proactively investing in renewable energy to reduce its reliance on conventional energy sources and strengthen its ability to address transition risks associated with climate change, thereby enhancing its long-term competitiveness. - Energy Cost Reduction and Long-Term Value Creation
Through the development of an in-house solar power generation system, the Company participates in the renewable energy market and diversifies energy-related risks. In addition, the Renewable Energy Certificate (T-REC) mechanism provides opportunities to generate additional value, supporting the Company's long-term operational development. - Energy Conservation and Cooling Benefits
Solar panels provide shading that reduces direct solar exposure on building rooftops and helps lower indoor temperatures by approximately 2–3°C. This may reduce air-conditioning demand, with estimated savings of approximately 18% in air-conditioning electricity consumption, thereby improving energy efficiency. - Extension of Building Service Life
The installation of the solar power generation system helps reduce the deterioration of rooftop floors and metal roofing sheets caused by prolonged exposure to sunlight. This may extend the service life of building materials while reducing future maintenance and replacement costs.
05
GHG Management
Since 2021, Kaori has been implementing the ISO 14064-1:2018 greenhouse gas inventory standard. For the third consecutive year, Kaori has passed third-party inspection and verification with a 100% achievement rate. Furthermore, the subsidiary in Ningbo, China, completed its inventory and verification process in 2024, following the same procedures as the parent company
2025 Greenhouse Gas Inventory Operation Status
The inventory is conducted in accordance with the ISO 14064-1:2018 Greenhouse Gas Inventory Standard. The boundary scope covers all factories and two subsidiaries in Taiwan, with a total of six sites. The Company passed the audit by the third-party verification institution, British Standards Institution (BSI), on May 4, 2026. According to the verification statistics, the total greenhouse gas emissions in 2025 were 23,218.6685 metric tons of carbon dioxide equivalent (tCO2e), of which: Scope 1 (Direct Emissions): 307.4891 tCO2e, Scope 2 (Energy Indirect Emissions): 7,766.1695 tCO2e, and Scope 3 (Other Indirect Emissions): 15,145.0099 tCO2e. Compared with 2024, the greenhouse gas emissions intensity in 2025 decreased by 31.28%, showing preliminary achievements in carbon reduction.
Greenhouse Gas Inventory the Past Three Years
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06
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 2024 and 2025, and the Company's business activities had no significant impact on water sources.
07
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
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.
