Message from the Chairman and CEO

During this challenging period, we are actively adjusting our strategies to cope with the rapidly changing environment. We continue to promote and practice the ESG (environmental, social, and governance) strategy with the core concept of “Creating sustainable values and a sustainable society”. In the past year, significant progress has been made in meeting the SDGs and the Company has further bolstered its commitment to social and environmental responsibility.

We continue to pay attention to the international sustainable development trends and review our own conditions. In 2023, USI and CGPC Company participated in the CDP questionnaire for the first time. By participating and answering the questionnaire, we can further our linkages with international issues. Furthermore, the concept of Double Materiality advocated by the European Union was introduced to conduct a comprehensive sustainability analysis. In addition, for the first time, the ESG Committee has been included in the performance evaluation of the Board of Directors to enhance governance effectiveness.

A few years ago, we committed ourselves to the implementation of energy conservation and carbon reduction plans to achieve the goal of 27% carbon reduction by 2030. This year, we will extend this goal until 2050 to achieve carbon neutrality and support the goal of global net zero emissions. 7.2MW of solar energy has been connected to the grid, and it is expected to generate more than 9 million kWh of green electricity. It is planned to complete 15MW and 20MW of solar energy installations in 2025 and 2027, respectively. Strive to reduce the overall impact on the environment through technological innovation and improvement of energy efficiency.

Create a diverse, fair, and inclusive workplace. We actively promote diversity and inclusion through organizing employee walk activities, collaborating with National Taiwan University Experimental Forest for afforestation, and organizing on-site agricultural education at Lishan Base. In terms of occupational safety, APC, TTC, and CGPC were “recognized as outstanding enterprises in the Occupational Health and Safety Indicators Initiative” of the Occupational Safety and Health Administration, MOL. Through the USI Educational Foundation, we provide long-term support for disadvantaged groups, remote areas, and ecological care projects, laying a solid foundation for the stable development of society.

Vinyl Chain focuses on the global trends of net zero carbon emissions and domestic carbon fee collection, and actively implements ESG sustainable management. Efforts were made for replacement of energy exhausting equipment, enhancing low-carbon energy proportion, solar power installations, introducing AI for optimization of manufacturing processes, and improving energy consumption and safety to implement industrial safety and environmental protection, continue to reduce costs, and fulfill social responsibilities to achieve the goal of corporate sustainability.

In terms of the environment: As of 2023, 2.12MW of solar energy equipment has been installed at the CGPC T Main plant, and the new natural gas boilers have replaced coal-fired boilers. It is planned to switch to natural gas before 2025.

Major improvement projects in Linyuan Plant: (1) the 35 ton Steam Boiler Optimization and Improvement project completed by TVCM (2) the optimization of the pure water steam heating system completed by CGPCP. To enhance safety and environmental protection awareness and optimize process efficiency, we continue to implement various management systems to ensure safe operations, reduce carbon emissions, sustainable use of water resources, as well as process safety management (PSM) and smart projects.

In terms of talent development, we have designed a comprehensive career development plan to enhance employees' expertise. Since 2019, we have been improving our working environment to provide our employees with a more comfortable workspace through ongoing improvement projects. In their spare time, employees have formed a team of volunteers to provide beach cleanup and community environmental maintenance services. They have also founded charity clubs to gather donations from employees to help the disadvantaged in society.

Finally, I believe that these efforts will have a positive impact on the future development of the Company. Through continuous innovation, cooperation, and strategic adjustment, we can coexist and co-prosper with the environment and achieve sustainable development. We are confident that with the concerted efforts of all employees, we will be able to overcome various challenges and achieve our common sustainable development goals.