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Climate change and Energy

Climate
Change
and
Energy
Management
Save energy and carbon reduction Management

Faced with intensifying climate change and increasingly stringent regulations, CGPC is taking concrete actions to promote energy conservation and carbon reduction, develop green products, improve operational efficiency, and move towards smart factories.


We actively refer to international and various technological developments to propose various improvement plans and following the Group's carbon reduction goals(27% carbon reduction by 2030, and carbon neutrality by 2050) , we set annual carbon reduction goals appropriately, review and continue to implement the replacement plan every year

Sustainable Certification Results
CGPC has been committed to transforming our factory areas, improve environmental friendliness, and a safe working environment. In June 2024, our company finally received recognition and obtained the Cleaner Production Assessment System Certificate and Green Building Label Certificate.
Energy Efficiency and Carbon Reduction Performance
Decarbonization pathway planning of Vinyl Chain
Implementation and results
  • Promote establishment of the ISO-50001 energy management system
    As of 2022, the USI Corporation has successfully verified nine factories.
    CGPC and CGPCP have obtained the ISO 50001 verification in 2019.
    TVCM has obtained the ISO 50001 verification in April 2021.
  • Group Promotion of Internal Carbon Pricing
    Introduced an internal carbon pricing system in 2024. The initial carbon price set at NTD 300 per metric ton and will be adjusted on a rolling basis.
    Incorporate carbon prices into decision-making and investment assessments to accelerate carbon reduction actions and low-carbon transformation.
    In 2024, three educational training and general education courses will be held to enhance employees' carbon management awareness and capabilities.
  • Carbon data management platform construction
    The platform construction will be launched in 2024. The first phase will cover five plants in Taiwan, systematically managing Scope 1 and 2 carbon emissions, and gradually incorporating some Scope 3 projects.
    The platform combines monthly reporting and voucher upload processes to improve data immediacy, accuracy and traceability.
    Supports multiple output formats to enhance carbon management efficiency and information transparency. Please refer to the 2024 Sustainability Reports.
  • Actively carry out energy conservation and carbon reduction actions
    We continue to support the EARTH HOUR "Love the Earth, Turn Off the Lights for One Hour" campaign every year to exert our influence and reduce environmental impact.
  • Promote alignment with IFRS sustainability disclosure standards
    In response to the phased application of IFRS sustainability disclosure standards starting from 2026, the Group established a cross-departmental task force in 2024, which will be coordinated by the Chief Financial Officer.
    The group includes "operational impact" and "financial impact" subgroups, and CGPC participates in the operational analysis.
    The gap analysis and implementation plan will be completed in 2024, and progress will be reported to the Board of Directors on a quarterly basis.
    For the implementation work plan, please refer to the 2024 Sustainability Report.
  • Natural Related Financial Disclosure (TNFD) Practice
    CGPC regularly assesses its operations' dependence on and impact on the natural environment, identifying "pollution" as a high-risk project.
    According to the TNFD mitigation hierarchy principle, manufacturing plants are located in industrial areas, avoiding proximity to biodiversity-sensitive areas, and strengthening pollution control.
    In terms of pollution control, various equipment such as VOCs treatment facilities and pre-treatment units for high-concentration process waste gas have been installed to ensure that emissions meet standards.
    Promote full-process waste management, introduce GPS tracking of removal routes, and ensure proper disposal.
    Continue to improve information transparency and communicate with stakeholders, and participate in community environmental improvement activities.
  • Greenhouse gas replacement project
    Since 2018, CGPC has implemented two greenhouse gas offset projects, both projects were approved by the Ministry of Environment, obtaining a total reduction quota of 7,464 tonnes of CO2e.
    The replacement projects includes：
    CGPC：「Updated the IEM Alkali Evaporation Tank Offset Project (Passed in 2022).
    TVCM：「Two pyrolysis furnaces (Passed in 2022).
    It will help reduce future carbon regulation risks and strengthen the implementation of carbon reduction strategies.
  • CDP Questionnaire
    Supply chain invited to participate in CDP questionnaire survey: climate change and water security in 2024, received B and B respectively
  • Green Financing ESG Indicators
    In response to the government’s green finance policy, CGPC (including TVCM and CGPCP) actively ollaborated with banks, Introduce ESG indicators as financing conditions to strengthen sustainable development commitments.
    The indicator focuses on environmental protection and has been approved by the bank, successfully linking ESG performance to loan conditions.
  • Securing ESG Financing Quotas and Low-Interest Loan Programs
    CGPC, CGPCP, and TVCM have continued to implement ESG initiatives and have signed sustainability-linked loan agreements with banks including Chang Hwa Bank, Taipei Fubon Bank, The Export-Import Bank of the Republic of China, and Bank of China.
    The low-interest project quota in 2024 is approximately NT$20.77 million：
    ◎CGPC : Application for automatic warehousing and VCM storage tank projects.
    ◎TVCM : Intercontinental Phase II project application.
The Group's cross-plant technical exchange seminar in 2024
The USI Corporation holds an annual “Group Plant Technical Case Presentation” and several “Northern/Southern Plant Resource Integration Meetings” each year. Through technical sharing and problem-solving discussions between plants, the Group promotes resource sharing and enhances energy-saving and carbon-reduction performance.

The 2024 Group Plant Technical Case Presentation was held on November 14 in a competition format, focusing on the core themes of “Occupational Safety and Environmental Protection”, “Equipment Preventive Maintenance” and “Energy Conservation and Carbon Reduction.”

After case submissions and a document review process, seven cases advanced to the final presentation round. Senior executives and representatives from participating plants jointly voted to select the top three outstanding cases. Certificates and cash awards were presented by the Group Chairman. Through this selection, recognition, and cross-plant exchange, the event fostered mutual learning and elevated the Group’s overall technical capabilities.

The Group's cross-plant technical exchange seminar and award in 2024
TVCM, Linyuan Plant(2nd Place)
Project Name：TVCM Intelligentization Project Results
Presenter：Engineer, Kuan-Yu Hou
CGPCP, Linyuan Plant(3rd Place)
Project Name：Hot Ultrapure Water System Optimization
Presenter： Section Chief, Yen-Chieh Li
CGPC, Main Plant (Excellent)
Project Name：360-Degree AOI Intelligent Safety System for Forklifts and Improvement of Thermal Imaging System for High-Voltage Panels
Presenter： Assistant Manager, Ming-Jie, Peng
Identify climate risk and opportunity
Facing the increasing impact on operations by climate change, CGPC prudently assesses possible risks and grasps potential new business opportunities. In recent years, we have actively implemented energy conservation and carbon reduction improvement solutions to enhance production efficiency, renovation and replacement of old equipment with newer high-performance energy conservation equipment.

The ESG Committee is the highest-level organization for climate change management, we continue to adopt the TCFD framework to deepen the risk items that we may face in extreme climates and to grasp new business opportunities. With reference to the Taiwan Climate Change Projection Information and Adaptation Knowledge Platform (TCCIP) and the National Science and Technology Center, and based on the RCP 8.5 scenario, we estimate the temperature rise, rainfall, flooding, and drought between 2016 and 2035.

Annually, we report to the Board of Directors on our climate change initiatives and performance. We also incorporate climate change assessment results into the company's risk management assessment program, with the General Manager's Office reporting on control operations to the Audit Committee and the Board of Directors.

Indicators and objectives 

The Group's energy management objectives
The Group's carbon reduction goals with 2017 as the baseline year, set the goal of 27% carbon reduction by 2030, and carbon neutrality by 2050. and will be reviewed every three years.
climate response strategies
•
Short term: Actively implement energy conservation and carbon reduction plans.
•
Medium-term: Carbon reduction strategy is set towards low-carbon energy transformation, energy efficiency improvement, intelligent monitoring, and the installation and use of renewable energy.
•
Long-term: Carbon reduction strategy continues to focus on low-carbon fuels, arbon capture and reuse technology, and carbon negative technology to implement carbon reduction strategies.
promotes internal carbon pricing
USI Group will introduce an internal carbon pricing system in 2024. The price will refer to the domestic carbon tariff pricing basis, and it is planned to integrate this system into corporate decision-making and investment. During the assessment process, the impact of carbon emissions on business operations is assessed to accelerate the implementation of carbon reduction measures.
Greenhouse gas emissions revealed
We use Greenhouse gas inventories to examine carbon emission hot spots in each plant and regularly review the reasons for increases and decreases. We also disclose scope 1 to 3 emission data in sustainability reports, public information observatories, and ESG web pages.

Climate-related risk items are divided into 3 intervals according to the time period of occurrence of impacts. The impact of climate-related opportunity items on the Company’s development and technical feasibility is divided into 5 levels, corresponding to the following table:
Type Item Time frame of occurrence
Physical
Risks		 Floods and Inundation Intermediate-term (3 to 7 years)
Drought Intermediate-term (3 to 7 years)
Transition
Risks		 Carbon Fee Short-term (< 3 years)
Renewable Energy Regulations - Risk of Clause for Large Power Users Short-term (< 3 years)
Low-carbon technology transition Short-term (< 3 years)
Rising raw material prices Short-term (< 3 years)
Type Item Development Technical feasibility
Opportunity Efficient production With development potential, as part of the Company's policy Under expansion
Recycling and Reuse - Circular Economy With development potential, as part of the Company's policy Under expansion
Reduce water usage and waste With development potential, as part of the Company's policy Matured
Use low-carbon energy With development potential, as part of the Company's policy Matured
R&D and innovation for developing new products and services - R&D of low-carbon energy-saving products With development potential, as part of the Company's policy Under expansion
Better Use of Public Sector Incentives With development potential, as part of the Company's policy Under expansion



Category Item Risk Topic
Physical
Risks		 1 Floods and Inundation
2 Drought
3 High temperature
Transition
Risks		 4 Government regulation or supervision
5 Carbon Tax/Fees
6 Product Efficiency Regulations and Standards
7 Renewable Energy Regulations
8 Changes in customer preferences
9 Credit risk
10 Low-carbon technology transition
11 Uncertainty of market information
12 Changes in raw material prices



Category Item Risk Topic
Opportunity
Topics		 1 Adopt more efficient transportation methods
2 Use more efficient production and distribution processes
3 Recovery and reuse
4 Shift to more efficient buildings
5 Reduce water usage and waste
6 Use low-carbon energy
7 Use of new technology
8 Participate in carbon trading market
9 Develop and/or increase low-carbon products and services
10 R&D and innovation in developing new products and services
11 Enter new markets
12 Better Use of Public Sector Incentives
Potential financial impact of risks and opportunities
Due to environmental degradation, energy and natural resource scarcity, intensified climate change, and stricter government regulations, businesses face pressure and challenges. Facing these external pressures is both a challenge and an opportunity. We continue to promote the work of "energy conservation and carbon reduction" with practical actions in an honest and responsible attitude. We set the environmental protection goals of power, energy and water conservation and carbon reduction and try our best to reduce the impact of business operations on the environment, further achieving the eco-friendly goals of low pollution and low energy consumption.
Climate change issue Issue Category Description of Risk and Opportunity Items Potential financial impact Vinyl Chain Strategy and Response Measures
Flooding Physical Risk / Chronic
According to data from the Water Resources Agency, if 500 mm of rainfall occurs within 24 hours, flooding of 0 to 1 meter is expected during the near term (2016–2035), lasting for one day.
Such heavy rainfall or flood events could cause plant shutdowns due to flooding, resulting in a decrease in revenue.
Increasing operating costs

CGPC Main Plant invested NTD 12.11 million in stormwater drainage reconstruction in 2021.
TVCM Linyuan Plant invested NTD 1.35 million in flood control and drainage measures in 2016.
Flood control measures at CGPC’s Main Plant include：
❃
Drainage maintenance：
The Administration Department regularly inspects and clears factory ditches to ensure smooth drainage.
❃
Flood preparedness：
Sandbags are prepared in advance during typhoon warnings, and the plant maintains a sufficient stock of flood control materials.
❃
Drainage improvement：
CGPC Main Plant completed reconstruction of two external outlets to improve drainage efficiency. Phase 2 will be reviewed alongside the heavy-duty tank project.
Flood control at TVCM：
A stormwater retention basin was installed to meet regulatory requirements that rainwater can overflow offsite only after 30 minutes of heavy rainfall. Rainwater is stored in the basin and pumped to the wastewater treatment plant during this period.
Note:
In 2023, CGPC Main Plant, guided by the Green Foundation, adopted TCFD scenario analysis. “Flooding” was assessed as a non-material, long-term risk.
Drought Physical Risk/Chronic
Based on the 1986 - 2005 baseline, the near-term (2016–2035) climate scenario shows 50–58 consecutive dry days per year, indicating potential water shortages or drought.
Abnormal climate may lead to water restrictions or shortages at the plant, potentially reducing production or causing full shutdowns.
Increased capital expenditure and operating costs

In 2018, the two plants of Centrifugal Drying High Performance Bio-treatment and Filtration System (HBF) : approx. NTD 66.64 million invested, and CGPC expansion in 2023 will add NTD 26.19 million, totaling NTD 92.83 million.
New water storage tank construction in 2021: total project cost approx. NTD 21 million.
In 2024, approximately NTD 930 thousand was invested in HBF maintenance.
Ongoing water monitoring and conservation strategies: Continue monitoring internal and external water conditions, increase the use of HBF recycled water, and raise the cooling tower concentration ratio to improve water use efficiency.
Improved water recycling rate: Actively promote water improvement initiatives and strengthen the R2 water reuse rate to ensure sustainable use of water resources.
Rainwater harvesting and water storage facilities: The CGPC building materials plant has implemented rainwater reuse and constructed a 1,500-ton tap water storage tank to enhance water storage capacity.
Annual water-saving results: In 2024, CGPC and CGPCP achieved a water saving of 45.83 million liters/year through the HBF system. CGPC plans to apply for a preferential water consumption fee rate review in 2025. The R2 water reuse rates in 2022–2024 were 81.3%, 79.2%, and 81.1%,respectively (all targets met).
Renewable Energy Regulation-Risk of the High Electricity Consumption User Clause Transition Risk / Policy and Legal The “Regulations for Power Users with Contract Capacity Above a Certain Threshold to Install Renewable Energy Generation Equipment,” issued by the Ministry of Economic Affairs, came into effect in 2021. The regulation requires electricity users with a contract capacity exceeding 5,000 kW to install renewable energy equipment equivalent to 10% of their contract capacity by 2025.
Increasing capital expenditure

A total of NTD 100 million has been invested in rooftop solar installations with a capacity of 2.12 MW. Due to a fire incident in 2024 affecting 0.24 MW of the installed capacity, the plan was revised, and the regulatory requirement under the High Electricity Consumption User Clause will now be met in 2025.
In 2024, approximately NTD 500 thousand was invested in green electricity purchased.
The rooftop of CGPC's Main Plant has a solar installation capacity of 1.88 MW.
In 2024, 97,000 kWh of green electricity was purchased.
Carbon fee Transition Risk / Policy and Legal The Ministry of Environment released the draft “Carbon Fee Charging Regulations” on October 21, 2024, and plans to begin collecting carbon fees in 2025 from major emitters with annual emissions exceeding 25,000 metric tons. High upfront capital expenditure, low carbon emissions in the long term, and reduced operating costs

Based on a preferential carbon fee rate of NTD 100 per metric ton of CO2e and an exemption threshold of 25,000 metric tons of CO2e：
CGPC and TVCM actively pursued voluntary reduction plans in 2025. Using the preferential rate of NTD 100, the estimated 2024 carbon fee is NTD 193.9 million, accounting for approximately 0.17% of the 2024 consolidated revenue.
In 2024, the Vinyl Chain implemented multiple carbon reduction projects, achieving a total reduction of 3,888 metric tons of CO2, resulting in a carbon reduction benefit of NTD 390,000.
CGPC is evaluating the use of internal carbon pricing as a shadow price to incorporate carbon costs into investment decisions and enhance the feasibility of carbon reduction projects.
Actively implementing carbon reduction initiatives, including equipment replacement, process improvement, and heat recovery projects.
Promoting intelligentization in plants by applying intelligent models to distillation columns to identify optimal operating conditions and reduce steam consumption per unit of product.
CGPC and TVCM obtained carbon offset quotas through GHG reduction projects. The first application was approved for 7,464 metric tons of CO2e; the second application, expected in the second half of 2025, aims for a reduction quota of 22,028 metric tons of CO2e. The total benefit of the second application is estimated at NTD 103.22 million (based on NTD 3,500 per metric ton).
In 2025, site-specific voluntary reduction plans will be proposed to apply for the preferential carbon fee rate.
Low-Carbon Technology Transition Transition Risks/Energy,Technology To reduce carbon emissions, the Company has invested in low-carbon technologies such as energy transition, efficiency improvement, and fuel substitution, leading to increased technology- related costs. Increased capital expenditure; reduced operating costs

In 2024, the Vinyl Chain invested approximately NTD 45.70 million in energy-saving and carbon reduction projects, achieving a reduction of 3,888 metric tons of CO2e
In 2024, green product procurement approved by the government totaled NTD 98.64 million.
In 2024, the Vinyl Chain replaced outdated dewatering equipment, with an investment of approximately NTD 3.25 million.
Introducing intelligent process management could save NTD 7.32 million by 2024.
All three Vinyl Chain plants have passed ISO 50001 energy management system certification.
Continue to promote energy-saving and carbon-reduction equipment improvement projects, such as replacing outdated equipment, recovering heat energy, introducing intelligent energy-saving systems, and applying energy-efficient coatings to cracking furnaces.
Since 2019, a green procurement program has been implemented through an online reporting system, with a primary focus on purchasing energy-saving equipment.
Investments in energy-saving equipment include pumps, motors, IE3 high-efficiency induction motors, inverters, gas boiler burners, LED bulbs, cooling tower circulation pumps, and fan replacements or inverter installations for fans.
Due to the electricity rate increase announced by Taipower on October 16, 2024, the electricity cost for the core production facilities of the three plants is expected to increase by NTD 97.07 million per year. The Company will actively invest in low-carbon technology transition to mitigate the impact.
Rising raw material price Transition Risks/Market With the potential implementation of carbon taxes in the future, raw materials may include additional carbon emission costs, leading to price increases Increasing operating costs

Due to inflation and uncertainty about the global economy, ethylene prices have declined. To strengthen vertical integration within the industry value chain and enable flexible production and sales planning, CGPC has constructed a new vinyl chloride storage tank, and TVCM has added a storage tank at the Intercontinental Terminal. The total investment cost is approximately NTD 3.5 billion, serving as a buffer against drastic market fluctuations.
In 2024, approximately NTD 20.42 million was invested in purchased recycled materials.
Promote circular economy:
Recycle and reuse raw materials. For example, in 2024, the CGPC Construction Manufacturing Department recycled 2,367 metric tons of pipe materials, accounting for 14.5% of total pipe production for the year.
Adopt a vertically integrated strategy covering procurement, production, and sales. Regular reviews of raw material and finished product inventories are conducted to respond to market changes through rolling adjustments. Projects include:
➤
TVCM established ethylene, vinyl chloride, and EDC storage tanks at the Intercontinental Terminal.
➤
CGPC Main Plant constructed a new ethylene storage tank.
Ensure flexible production and supply scheduling of key raw materials.

Climate change issue Issue Category Description of Risk and Opportunity Items Potential financial impact Vinyl Chain Strategy and Response Measures
High-Efficiency Production Opportunity/Resource Efficiency By adopting smart manufacturing, industrial motors, automated packaging, and other production tools, overall production efficiency is improved and energy consumption is reduced. Increased capital expenditure; reduced operating costs

Introducing intelligent manufacturing process and resulted in cost savings of about NTD 7.03 million in 2024.
The optimization project for Dryer #5: involved an investment of approximately NTD 4.15 million.
The optimization project for Dryer #7: involved an investment of approximately NTD 1 million.
An intelligent energy-saving project was implemented on the VCM tower (C-6203): involved an investment of approximately NTD 2 million.
 Introduce intelligent systems to establish smart management (see Section 3.6 for details)
Intelligent control was introduced into the process to optimize operating conditions through modeling. Dryer #5 and #7 are expected to save a total of 2,896 tons of steam and reduce carbon emissions by 401 tons of CO2e annually.
Image recognition (AOI) technology is applied to thermal imaging of electrical panels and forklift safety sensing systems to enhance workplace safety.
For example, the 35-ton boiler intelligent control projectin 2023 saved 460,504 kWh of electricity, 1,400,000 m3 of natural gas, and reduced 3,138.5 tons of CO2e, with a cost saving of approximately NTD 15.45 million.
In 2024, an intelligent energy-saving project was implemented on the VCM tower (C-6203), expected to save 1,920 tons of steam, 4,349GJ of energy, and reduce 260 tons of CO2e.
Recovery and reuse - Circular economy Opportunity/Resource Efficiency In accordance with the three core principles of the circular economy (3R):
Reduce, Reuse, Recycle Reduce waste treatment costs or raw material consumption		 Increasing operating costs

In 2023, approximately NTD 800 thousand was invested in the GRS (Global Recycled Standard) certification project. In 2023, approximately NTD 500 thousand was invested in the final product Recycled TPE rubber project.
In 2023, approximately NTD 800 thousand was invested in the TPO fish-electricity symbiotic water pond fabric project.
In 2024, approximately NTD 500 thousand was invested in TPU foam material; approximately NTD 300 thousand was invested in TPO baby car safety seat covering.
Since 2020, the CGPC Construction Manufacturing Department has collected various types of in-plant recycled materials and recovered PVC powder, along with externally purchased recycled pellets, to produce and sell remanufactured products. As of 2024, the total amount recycled reached approximately 11,948 metric tons, with a recycling and reuse rate of 14% in 2024.
Recycled plastic content in CGPC’s TPE eco-friendly leather products ranges from 30% to 60%, and the products are certified under the Global Recycled Standard (GRS).
CGPC has replaced PVC bags for small packages with hot-melt PE bags, which can be 100% recycled for reuse.
The TPO fish-electricity symbiotic water pond fabric began formal order-based sales in 2024, with a total sales volume of 41 metric tons.
Reduce water usage and waste Opportunity/Resource Efficiency Water is an indispensable resource in the production process. Reducing water leakage and increasing the water recycling and reuse rate help lower operating costs and enhance plant resilience. Increased capital expenditure; reduced operating costs

Centrifugal Drying High Performance Bio-treatment and Filtration System (HBF): approx. NTD 92.83 million invested.
In 2024, approximately NTD 930 thousand was invested in HBF maintenance.
Rainwater Reuse: CGPC Main Plant has installed a rainwater reuse system that stores approximately 5 tons of rainwater for landscape irrigation and toilet flushing within the plant, effectively reducing tap water consumption.
HBF and Optimization: The CGPC Main Plant and CGPCP (Linyuan Plant) have implemented centrifugal drying high performance bio-treatment and filtration systems (HBF) for process water recovery, utilizing biological treatment and COD adsorption technology. The CGPC Main Plant has completed the installation of additional filtration tanks and pre-treatment units to enhance cooling water recovery efficiency.
In 2024, the total water savings reached 458 million liters. In 2024, the R2 water recovery rate for the three plants reached 81.1% (target achieved).
Condensate Reuse: TVCM (Linyuan Plant) recovers condensate from process steam and recirculates it to the cooling tower system, thereby reducing the amount of make-up water required for cooling.
Use low-carbon energy Opportunity / Source of Resilience CGPC and TVCM implemented energy- saving improvement projects for natural gas boilers, with a total investment of approximately NTD 63 million. In 2024, these projects resulted in total savings of NTD 20.36 million in natural gas and electricity expenses. Increased capital expenditure and reduced carbon fees

CGPC and TVCM implemented energy-saving improvement projects for natural gas boilers, with a total investment of approximately NTD 63 million.
A new 30-ton natural gas boiler was installed at the CGPC Main Plant and completed in October 2023. It is expected to save 1,235,88. NM3 of natural gas per year, resulting in an annual carbon reduction of 2,345 metric tons of CO2e.
Since 2021, CGPC has been promoting the replacement of coal-fired boilers with natural gas boilers, with the goal of a full transition to natural gas by 2025. The estimated annual carbon reduction is approximately 16,000 metric tons of CO2e.
TVCM (Linyuan Plant) - The optimization project for the 35-ton steam boilerwas completed in July 2023. After optimization, the boiler is expected to save 1,400,00 M3 of natural gas per year. The wind turbine system was upgraded to variable frequency control, saving 460,504 kWh of electricity per year. Total carbon reduction: 3,139 metric tons of CO2e per year.
R&D and innovation in developing new products and services - Low- carbon and energy-saving product development Opportunities/ Products and Services R&D efforts focus on the development of products aligned with circular economy, low-carbon, and energy-saving concepts, with technological investment based on the full life cycle of products and services to develop low-carbon products. Increased R&D expenses and higher operating costs

In 2023, the Company obtained GRS (Global Recycled Standard) certification. This project enhanced corporate image, secured brand certification, and strengthened market competitiveness, with an investment of around NTD 800 thousand. In 2024, around NTD 500 thousand was invested in TPU foam materials.
In 2023, around NTD 500 thousand was invested in the Bio-shell powder antibacterial and anti-mold leather.
In 2024, around NTD 500 thousand was invested in the low-carbon product project for TPO single-material rubber.
Ongoing Development of Circular Recycled Products:
Adopt post-consumer TPO or industrial waste TPU materials and utilize a compression molding process along with post-consumer recycled PET bottles to produce polyester non- woven fabric (base fabric) for environmentally friendly synthetic leather. The proportion of recycled plastic used reaches 30-60%, and the products are certified under the Global Recycled Standard (GRS).
Waste oyster shells are calcined at high temperatures and ground into oyster shell powder, a natural material that replaces synthetic antibacterial agents. This is applied to synthetic leather to minimize environmental pollution and impact. Test results confirm its antibacterial and anti-mildew effectiveness.
Products such as sports shoes and backpacks made from 100% single-material TPO can be crushed and reused as recycled material at the end of their life cycle, achieving circular recycling goals.
Leveraging Public Sector Incentive Programs Opportunities / Market Utilize government incentive mechanisms to reduce input costs, adopt new technologies, and enhance competitiveness. Increased capital expenditure and increased revenue

In 2023, the CGPC Main Plant was selected by the Industrial Development Bureau as a guidance- supported manufacturer, and in 2024, it became a TCFD demonstration plant.
In 2024, the CGPC Main Plant applied for the Clean Production + Green Building program, with an investment of approximately NTD 1.5 million.
Low-Interest Loan Programs:
➤
CGPC application programs: Rooting Enterprises in Taiwan - Automated Warehousing; Returning Taiwanese Businesses - VCM Storage Tanks.
➤
TVCM: Under the “SME Project - Intercontinental Phase 2,” the Company received government support in 2024 for a low-interest loan project totaling approximately NTD 20.77 million.
In 2024, total government subsidies amounted to NTD 18.56 million.
In 2023, CGPC conducted five TCFD counseling sessions, focusing on the RCP 8.5 scenario and projecting future scenarios of three types of climate disasters: floods, droughts, and high temperatures for the period from 2016 to 2035.
For transition risks, the Company referred to the IEA and set the scenario as “a future global temperature rise of 1.5°C” to enable early planning of medium- and long-term strategies, allowing the Company to more accurately identify risks and opportunities. In 2024. CGPC shared its TCFD implementation experiences with other industries.
In 2024, CGPC obtained the “Clean Production Assessment” and “Green Building Label.”
By securing government subsidies and low-interest loans, the Company effectively reduced costs and ensured sufficient funding for operational needs.
2024 Government subsidies
➤
Domestic Investment Interest Subsidies: NTD 9.6 million
➤
Occupational safety and Health Administration, Ministry of Labor: NTD 290 thousand
➤
Energy Administration, Ministry of Economic Affairs: NTD 7.58 million
➤
Bureau of Labor Insurance, Ministry of Labor: NTD 30 thousand
➤
Taoyuan-Hsinchu-Miaoli Branch of the Workforce Development Agency, Ministry of Labor: NTD 110 thousand
➤
International Trade Administration,Ministry of Economic Affairs: NTD 950 thousand
Climate change mitigation measures
CGPC is committed to mitigating greenhouse gas emissions for sustainable development. We formulate improvement plans on the basis of various management operating systems (ISO 50001, ISO 14064-1, ISO 14067, ISO 46001, ISO 14046, PSM, GRS) and with reference to several international and technological developments. Through academia-industry collaborations introducing intelligent, big data, and algorithmic technology, we combined professional knowledge with practice to elevate various performances.
Energy Efficiency and Carbon Reduction Program
  • By company
  • Energy conservation and carbon reduction solutions
  • 2024 Performance
    Amount of energy conservation (GJ) Amount of carbon reduction (CO2e tonnes)
  • CGPC
    (Main Plant)
  • Replacement of outdated air compressors with new ones in RecoComp Section
    RecoComp Dryer #7 intelligent energy-saving project
    Energy-saving improvement through maintenance of electrolyzers in the Alkali-Chlorine Section
    Replacement of old chillers with new ones
    Energy-saving improvement for motors
  • 8,508 755
  • TVCM
    (Linyuan Plant)
  • Replacement of circulation water pumps in the cooling tower
    Intelligent energy-saving project for the VCM tower
    Steam trap improvement project (Phase 3)
  • 51,896 3,133
  • Total
  • 60,404 3,888
Note:
1.
The data source is the annual Energy Conservation Audit Report for Energy Users submitted to the Energy Administration.
2.
By 2024, a total of 60,404 GJ of energy were saved and 3,888 tons of CO2e of carbon were reduced, equivalent to the annual carbon emissions absorbed by ten Da’an Forest Parks.
3.
This program does not include the carbon reduction benefits of offset projects. Please refer to the explanation provided in the Greenhouse gas replacement project Quota Application for further details.
4.
The calculation methodologies and formulas used, Please refer CGPC ESG report 2024 Page 93.
Circular economy
CGPC values the efficiency of resources use and have adopted the circular model of recovery and re-use of raw materials and supplies, manufacturing process and distribution. In 2024 ,the internal and external results of circular economy practices are shown as follows:
Energy management
CGPC’s plants primarily use purchased electricity, natural gas, and fuel coal. The scope of energy use inventory in 2024 includes CGPC Main plant and TVCM and CGPCP plants in Linyuan, with a coverage rate of 100% and obtained ISO 50001 as well.
2024 Energy Conservation Performance
Act in concert with the government’s Net-Zero carbon emissions, in terms of electricity saving :adopt voluntary reduction, promote various electricity saving measures in the plant and exceed the legal requirements.
Item CGPC TVCM CGPCP
Save electricity 2.66% 2.98% 1.94%
1.
The data comes from the Energy Administration’s annual energy conservation inspection system reporting form.
2.
Description of achievement rate: CGPC, TVCM, and CGPCP have all achieved their targeted electricity saving rates.
Energy consumption for per unity unit products during the last three years (Unit: GJ/tones)
  • 2022
  • 2023
  • 2024
PVC resin
CGPC
Chemical products
Fabrication products
VCM
TVCM
PVC resin
CGPCP
Greenhouse gas management
GHG inventory is carried out every year to effectively manage the emissions of each factory of CGPC. Among them, CGPC Toufen Main Plant and TVCM's Linyuan plant are the first wave of regulations for stationary sources that should be checked and registered for greenhouse gas emissions under the Greenhouse Gas Reduction and Management Act, so the inventory of GHG is carried out in accordance with the Management Measures for GHG Inventory Registration, and the data is regularly verified by an independent third-party verification agency.
Greenhouse gas emission intensity during the last three years (Unit: tones CO2e/tones)
  • 2022
  • 2023
  • 2024
PVC resin
CGPC
Chemical products
Fabrication products
VCM
TVCM
PVC resin
CGPCP
Greenhouse gas emissions of each company in the last three years (Unit: 10,000 tons CO2e)
  • Scope 1
  • Scope 2
  • Scope 3
  • 2022
  • 2023
  • 2024
CGPC
  • 2022
  • 2023
  • 2024
TVCM
  • 2022
  • 2023
  • 2024
CGPCP
Notes:
1.
Scope of inventory in 2024:The above scopes include CGPC’s subsidiaries in the consolidated financial statements, with a coverage rate of 100%. Greenhouse gas inventory includes: CO2, CH4, N2O, and HFCs.
2.
The calculation adopts the operational control method, and the emission factors are based on officially announced coefficients(The electricity carbon emission coefficient adopts the coefficient of the Energy Agency),for detail please refer to P.78 (Notes on Carbon Reduction Pathway Planning), P.91 (Notes on Scopes 1 and 2), and P.92 (Notes on Scope 3) of the 2024 Sustainability Report.
Entrust a third party to conduct a greenhouse gas inventory.
Greenhouse gas and ISO 14067 product carbon footprint verification is conducted in accordance with the ISO 14064-1:2018 standard. The certificate can be found on the official website.

1.
2.
Renewable Energy
In response to energy transition and the goal of net zero carbon emissions, the company is actively introducing renewable energy, prioritizing the installation of solar energy equipment in various factories to increase the utilization rate of green electricity. Through a parallel strategy of self-construction and external procurement, by the end of 2024, the cumulative installed capacity will reach 1,880.88 kWp and the purchased green electricity will reach 97,000 kWh, demonstrating the concrete results of the Company's promotion of low-carbon operations.
Solar energy construction progress
Since 2019, seven phases of solar equipment have been completed, with a total installed capacity of 1,880.88 kWp.

Issues Capacity (kWp) Completion time Description
1 499.59 April 16, 2019
Phases 1-5 of the leased rooftop solar installation capacity were purchased back in May 2022.
Phase 3, which was installed on the rooftop of a rubber tape factory, was demolished due to fire damage in October 2024.
2 438.59 April 16, 2019
3 236.84 October 25, 2019
4 74.40 October 25, 2019
5 188.48 October 25, 2019
6 238.64 November 16, 2023
7 411.18 December 27, 2023
Total 1,880.88
Solar system monitoring platform screen display
Please click on the picture to view the latest monitoring status
Solar power generation results
Solar power generation over the years：

Year Solar power generation (10,000 kWh) Description
2022 123 Repurchased the rental rooftop solar capacity for Phases 1-5 in May 2022 and sold the entire capacity to Taipower from May to December 2022.
2023 173 All sold in bulk to Taipower.
2024 254 All sold in bulk to Taipower.
Total 550
Planning for purchasing green electricity
In 2024, CGPC Main Plant purchased a total of 97,000 kWh of green electricity and certificates.
In 2025, CGPC Main Plant will purchase a total of 154,000 kWh of green electricity and certificates.
TVCM Linyuan Plant plans to purchase a total of 1.64 million kWh of green electricity and certificates by the end of 2025, continuously increasing the proportion of green electricity used to achieve energy transition goals.
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