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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.


In July 2025, the Company obtained ISO 14021 Recycled Content Certification for its PVC rigid pipes and electrical conduit products (achieving certificates for both rigid pipes and Electrical conduit), Carbon footprint calculations will subsequently be initiated to assist customers in fulfilling their green building material procurement goals.

Participating in the 2025 CDP initiatives, CGPC was honored with a Management Level rating of "B" across both Climate Change and Water Security questionnaires.

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-wide Implementation of Internal Carbon Pricing (ICP)
    To proactively align with government carbon fee policies, address climate change effectively, and mitigate carbon risks, USI Group introduced an Internal Carbon Pricing (ICP) system in 2024, covering all manufacturing sites in Taiwan. Modeled after domestic carbon fee pricing mechanisms, the initial shadow price was set at NT$300 per metric ton of CO2e and will be reviewed and scaled upward in phases dynamically. This system integrates carbon costs directly into corporate decision-making and capital investment evaluations, assessing the financial and operational impacts of carbon emissions to accelerate carbon reduction initiatives and drive low-carbon investments.
    To ensure the mechanism's effective implementation, the Group reviews and verifies its operational progress annually. In May 2025, the Group completed an audit confirming that all business units had incorporated carbon pricing into their project evaluation metrics, ensuring that this mechanism effectively transforms into a driving force for low-carbon transition and advances the Group's long-term corporate sustainability goals.
  • Establishment of the Carbon Data Management Platform
    To enhance the real-time accuracy and reliability of carbon emission data, USI Group initiated the development of a centralized Carbon Data Management Platform in 2024, strengthening internal GHG inventory workflows and data integration capabilities across the Group.
    The initial phase of the platform covers five manufacturing plants in Taiwan, focusing on the systematic collection of Scope 1 and Scope 2 carbon emissions while gradually incorporating selected Scope 3 categories.
    By integrating with existing monthly reporting mechanisms and digital document upload workflows, the system architecture ensures complete consistency and auditability between activity data and source documentation.
    Furthermore, the platform features flexible data output capabilities, generating customized reporting formats aligned with various regulatory and reporting standards.
    Through the deployment of this platform, USI Group manages carbon emissions with greater operational efficiency, underscoring its commitment to data-driven carbon management, enhanced information transparency, and strengthened climate resilience. For further details, please refer to the 2025 ESG Report.
  • 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
    To prepare for the phased adoption of the IFRS Sustainability Disclosure Standards beginning in 2026, the Group established a cross-departmental task force in 2024, led and coordinated by the Chief Financial Officer (CFO).
    The task force comprises two sub-groups: "Operational Impact" and "Financial Impact," with CGPC participating in the operational analysis.
    In 2025, Phase 2 project deliverables were successfully completed, with implementation progress reported to the Board of Directors on a quarterly basis in accordance with regulatory timelines. The relevant disclosures are scheduled to be published in the dedicated Sustainability Information chapter of the Annual Report released in 2028.
    For details regarding the implementation work plan, please refer to the 2025 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
    Invited by supply chain partners to participate in the 2025 CDP questionnaires for Climate Change and Water Security, the Company was honored to achieve dual "B" Management Level ratings. 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.
  • Collaboration on Sustainability-Linked Loans (SLLs)
    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.
    In 2025, the Company secured low-interest project credit lines totaling approximately NT$15.08 million.
    CGPC: Investments in Taiwan Enterprise Action Plan-Automated Storage and Retrieval System (ASRS); Returning Taiwanese Businesses Action Plan-Polymerization Reactor Project.
    TVCM: Small and Medium Enterprises Action Plan — Intercontinental Phase II Project.
The Group's cross-plant technical exchange seminar in 2025
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 2025 Group Plant Technical Case Presentation was held on October 28 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 2025
CGPC, Main Plant (2nd Place)
Project Name：Eco-Sustainability & Energy-Saving, Carbon-Reduction New Product
Presenter：Engineer, Lin, Pei-Tzu
TVCM, Linyuan Plant (3rd Place)
Project Name：Cracking Furnace Coating & Pump Energy-Saving Project
Presenter： Engineer, Tsai, Tsung-Yi
CGPCP, Linyuan Plant ( Excellent )
Achieved 5,000 Consecutive Accident-Free Days
Presenter： General Plant Manager, Tsai, Ming-Kuang
Climate-Related Risks and Opportunities Assessment
CGPC actively responds to the challenges of climate change by integrating it into the Company‘s core governance framework. The Board of Directors serves as the highest governance body. Under its authority, the Sustainability Development Committee is responsible for strategic review and oversight, while the Risk Management Group implements risk monitoring. Furthermore, CGPC has linked ESG performance to the executive compensation system to strengthen accountability for organizational climate action.

In terms of strategy and risk management, CGPC references the IFRS S2 standard to establish a comprehensive process for climate risk identification, assessment, and financial impact analysis.

To achieve our sustainability vision, the Company has clearly defined a carbon reduction pathway for the consolidated entities: using 2017 as the base year, we target a 27% reduction in carbon emissions by 2030, marching towards carbon neutrality by 2050. Through specific response actions such as equipment replacement, renewable energy deployment, and production optimization, along with the regular disclosure of carbon emission data, we demonstrate USI‘s commitment to climate resilience and the sustainable development of the value chain.

To strengthen climate risk management and align with international standards, the Company references the IFRS S2 “Climate-related Disclosures” standard to assess the impact of climate-related risks and opportunities on the corporate strategy and financial position of entities included in the consolidated financial statements. Through scenario analysis, we identify key factors and incorporate corresponding response strategies into our business decision-making process.

For physical risks, we reference the Atlas of Key Climate Change Indicators in Taiwan (AR6 Statistical Downscaled Edition) published by the Taiwan Climate Change Projection Information and Adaptation Knowledge Platform (TCCIP), as well as research data from the National Science and Technology Center for Disaster Reduction (NCDR). We adopt scenarios from the IPCC Sixth Assessment Report (AR6) that combine Shared Socioeconomic Pathways (SSPs) with Representative Concentration Pathways (RCPs).

The Company has selected the SSP5-8.5 (very high greenhouse gas emissions) scenario as its baseline, under which carbon dioxide emissions are projected to double by 2050. Based on this, we conducted financial impact analyses for climate hazards including extreme heat, flooding, and drought.

For transition risks, we reference the World Energy Outlook (WEO) published by the International Energy Agency (IEA) in 2021. The report outlines three scenarios based on varying energy trends and climate policies: STEPS (Stated Policies Scenario), APS (Announced Pledges Scenario), and NZE (Net Zero Emissions by 2050 Scenario). Among these, the NZE scenario assumes that all countries will achieve net-zero emissions by 2050, representing the most aggressive scenario for driving emission reduction measures.

Furthermore, we referenced “Taiwan‘s Pathway to Net-Zero Emissions in 2050” published by the National Development Council (NDC) in 2022. This aligns our efforts with the national carbon reduction trajectory and ensures the Company maintains its operational resilience for sustainable growth in the face of extreme climate change impacts.

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
In 2024, USI Group introduced an Internal Carbon Pricing (ICP) system across all manufacturing facilities in Taiwan. Aligned with the domestic carbon fee pricing framework, the initial shadow price was established at NT$300 per metric ton of CO2e, with plans for periodic reviews and phased adjustments. This mechanism integrates carbon costs directly into corporate decision-making and capital expenditure evaluation processes, enabling the assessment of carbon emission impacts on operational business and driving low-carbon investments. To ensure effective implementation, the Group regularly monitors and audits execution performance on an annual basis. In May 2025, a review was completed to verify that all business units had incorporated internal carbon pricing into project evaluations, ensuring the mechanism effectively translates into momentum for low-carbon transition and advances the Group's long-term corporate sustainability goals.
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.

To ensure the assessment results align with actual operational practices, the Company distributed questionnaires to senior department heads. Five climate risks were evaluated across four dimensions: "magnitude of impact," "likelihood of occurrence," "vulnerability," and "speed of onset." Simultaneously, five climate opportunities were evaluated based on "magnitude of impact" and "likelihood of occurrence.“

Following the statistical analysis of the questionnaires and quantitative modeling, and the subsequent generation of a two-dimensional scatter plot, we ultimately identified five key material issues to be prioritized in our risk management and strategic planning：

Three high-priority risks:
R1-Transition Risk – Carbon Fee Collection
R4-Physical Risk – High Temperatures and Unstable Energy Supply
R5-Physical Risk – Extreme Rainfall and Flooding
Two high-potential opportunities:
O1-Introduction of Low-Carbon Energy
O5-Enhancement of Corporate Reputation and Brand Awareness

Addressing the material climate issues identified above, CGPC conducted scenario modeling and financial impact assessments, and formulated corresponding response strategies and management mechanisms. To ensure the effectiveness of our risk management, the Company conducts regular annual monitoring of climate-related risks. The execution results are consolidated into the Company's risk management operational report and presented annually to the Audit Committee and the Board of Directors. This ensures the effective implementation of risk management measures, aiming to accurately grasp and mitigate the operational impacts brought by extreme weather, and demonstrating our commitment to building a resilient climate change culture.

Sustainability and Climate-Related Risks and Opportunities Reasonably Expected to Affect the Company
To address the uncertainties posed by climate change, CGPC has identified the key physical risks, transition risks, and climate-related opportunities relevant to its operations. We have also assessed their potential impacts on the Company's business, operational strategies, and financial performance across different time horizons. Based on our specific operational characteristics and the industry environment, the Company defines these time horizons as follows:


Category Issue Description Expected Time Horizon Concentration in the Business Model / Value Chain Impact on Business Model / Value Chain
Short term Mid term Long term
Transition Risk Carbon Pricing
According to the "Climate Change Response Act," Taiwan will officially begin imposing carbon fees starting in 2025, targeting business entities with annual carbon emissions exceeding 25,000 metric tons. As CGPC's Main Plant and TVCM's Linyuan Plant are both classified as carbon fee-paying entities, the significant annual carbon fees will lead to increased operating expenses. The continuous expansion of low-carbon and energy-saving initiatives can mitigate the impact of this risk.
◎ ◎ ◎
Suppliers
Own Operations
Customers
Current｜Business Model & Value Chain
Formulating Low-Carbon Transition Plans.
Establishing an Internal Carbon Pricing (ICP) Mechanism: Integrating otential carbon fee expenditures into annual operating cost budgets to evaluate the specific impacts on gross margins and cash flow.
Actively Planning and Executing "Voluntary Emission Reduction Plans".
Anticipated｜Business Model & Value Chain
Accelerating the Advancement of Corporate Low-Carbon Transition Policies.
Cost Pass-Through from Upstream Suppliers: Potential passing on of carbon fee costs by upstream suppliers, leading to increased raw material procurement costs (Green Premium).
Stringent Downstream Demands: Increasingly rigorous requirements from customers for "Low-Carbon Products" or "Green Supply Chains." Failure to comply with carbon reduction demands may lead to the risk of losing orders.
Physical Risk High Temperatures and Unstable Energy Supply As climate change intensifies, the continuous rise in annual average temperatures and a significant increase in the number of high-temperature days have become a global trend. According to data from the Central Weather Administration (CWA), the frequency of annual average temperature increases and heatwave events in Taiwan shows a clear upward trajectory, indicating that summer heat may become a permanent source of risk in the future. High temperatures elevate the risk of power supply instability for public retail electricity utilities. To address this, the Company will conduct regular maintenance of power equipment to enhance resilience against power instability. - - ◎
Suppliers
Own Operations
Customers
Current｜Business Model & Value Chain
Strengthening Maintenance of On-site Backup Generators and Uninterruptible Power Supply (UPS) Systems: Ensuring readiness to address sudden power load reductions or unexpected blackouts.
Anticipated｜Business Model & Value Chain
Increased Cooling Demand: Rising demand for air conditioning in plants and offices will lead to higher electricity consumption and daily operating costs (utility expenses).
Capital Expenditure (CAPEX) Requirements: Necessity to budget for capital expenditures to replace aging, energy-intensive equipment and implement Smart Energy Management Systems to enhance energy efficiency.
Upstream Supply Chain Pressures: Costs incurred by upstream suppliers to enhance their own climate resilience may lead to an escalation in procurement costs.
Downstream Operational Disruptions: If downstream customers are forced to suspend operations due to high-temperature power rationing or sudden blackouts, it may result in reduced purchase volumes and a lower frequency of pull-ins.
Extreme Rainfall and Flooding According to observations from the Central Weather Administration (CWA) and IPCC reports, there has been a significant increase in typhoons, heavy rainfall, and localized rainstorms in Taiwan in recent years. These events not only cause recurring flooding in urban and low-lying areas but also bring immediate and severe impacts to industrial operations, categorizing them as acute physical risks. - ◎ ◎
Suppliers
Own Operations
Customers
Current｜Business Model & Value Chain
Assessing Flood Susceptibility of Operational Sites: Integrating potential expenditures for flood defense installations, disaster recovery, and insurance premiums into annual operating budgets to evaluate the specific impacts on gross margins and cash flow.
Anticipated｜Business Model & Value Chain
Accelerating Resilience Upgrades and Climate Adaptation: Expediting the enhancement of protective resilience at operational sites and the advancement of climate adaptation policies.
Upstream Supply Chain Vulnerabilities: Potential damage to facilities or transportation disruptions for upstream suppliers due to extreme rainfall and flooding. This creates risks of raw material delays and supply chain fragmentation, leading to increased procurement and logistics costs.
Downstream Delivery Pressures: Increasingly stringent requirements from customers regarding "supply chain climate resilience" and "stable delivery capabilities." Any production halts or delivery delays caused by extreme weather may lead to risks of breach-of-contract penalties or loss of orders.
Opportunity Introduction of Low-Carbon Energy Driven by increasingly stringent global climate policies and the 2050 Net-Zero goal, corporate energy consumption structures are undergoing a rapid transition. The deployment of renewable energy has become a critical opportunity for companies to fulfill their carbon reduction commitments and maintain international competitiveness. For carbon-intensive manufacturing industries, self-generating or procuring renewable energy—such as solar, wind, and geothermal power—can effectively reduce indirect greenhouse gas (GHG) emissions generated during electricity consumption. ◎ ◎ ◎
Suppliers
Own Operations
Customers
Current｜Business Model & Value Chain
Assessing Renewable Energy Potential at Production Sites: Integrating capital expenditures (CAPEX) for equipment installation and renewable energy procurement costs into annual operating budget planning.
Anticipated｜Business Model & Value Chain
Increasing the Share of Low-Carbon and Renewable Energy: Expanding the proportion of low-carbon and renewable energy within the overall energy mix.
Upstream Supply Chain Pressures: Upstream suppliers may face pressure from brand owners to increase their renewable energy usage, prompting them to increase green energy procurement, which in turn leads to rising operating costs.
Downstream Green Market Opportunities: Actively responding to strong customer demand for "Green Manufacturing" and "Low-Carbon Products" by offering products with "low-carbon premiums" to secure green procurement opportunities and expand market share.
Enhancing Corporate Reputation and Brand Awareness By developing and promoting innovative, low-carbon, and eco-friendly products and services, the Company proactively responds to rising consumer demand for green solutions. These initiatives not only enable the Company to tap into emerging sustainable markets but also allow us to stand out in highly competitive existing markets. By leveraging the competitive advantage of green value differentiation, we aim to comprehensively enhance our overall market competitiveness. ◎ ◎ ◎
Own Operations
Customers
Currently｜Business Model, Value Chain
Allocating R&D Resources to Sustainability-Related Products: Directing research and development efforts toward the creation of products with environmental and sustainable benefits.
Anticipated｜Business Model & Value Chain
Continuous Development of Emerging Sustainable Products: Sustaining R&D efforts for various innovative sustainable products in response to the growing market demand for low-carbon solutions and energy transition.
Capturing Downstream Green Demand: Leveraging strong customer demand for "Green Manufacturing" and "Low-Carbon Products" by offering products with low-carbon premiums to prioritize green procurement opportunities and expand market share.
Strategic Decision-Making and Financial Impacts of Sustainability and Climate-Related Risks and Opportunities
Category Issue Financial Impact Strategic Responses & Decision Impact
Transition Risk Carbon Pricing Financial Impacts for the Current Period：
The CGPC Toufen Main Plant and TVCM Linyuan Plant have met the Ministry of Environment's criteria for "High Carbon Leakage Risk." Having submitted and received approval for their Voluntary Emission Reduction Plans, both plants have been granted the preferential carbon fee rate of NT 4,372 thousand based on current emissions.
To reduce carbon emissions and mitigate the impact of carbon fees, the Group invested NT$61,119 thousand in capital expenditures during this period. These funds were allocated to energy-saving equipment, including energy-efficiency improvements for dryer coils, replacement with high-efficiency pumps, upgrades of air compressor equipment, and motor renewals/energy-saving enhancements for calendering machines. These investments resulted in an increase in non-current assets and cash outflows from investing activities.
While equipment investments lead to increased depreciation expenses and cash outflows in the short term, the long-term benefits—including reduced electricity expenses through improved energy efficiency and lower carbon fee costs—will help optimize overall operational efficiency and safeguard the Company’s profitability.
1.
The Company has introduced Internal Carbon Pricing (ICP) utilizing a Shadow Pricing mechanism. By incorporating carbon costs into investment appraisals, we enhance the feasibility and implementation opportunities of carbon reduction projects.
2.
We have established an Energy Management System (EnMS) to analyze operational data and identify opportunities for energy efficiency improvements.
Physical Risk High Temperatures and Unstable Energy Supply Financial Impacts for the Current Period：
To ensure the operational stability of production equipment under extreme weather conditions, the Group has intensified inspections of on-site substations, extra-high voltage (EHV) insulation cleaning, and annual maintenance/testing of generator sets. These measures ensure the reliability of power supply systems and core operational equipment. Related investments included NT$1,900 thousand in capital expenditures (CAPEX) and NT$3,127 thousand in operating expenses (OPEX).
By strengthening energy infrastructure and equipment resilience, although there is a short-term increase in capital expenditures and maintenance costs, these efforts effectively mitigate the risk of potential business interruption losses caused by heat-related downtime or power rationing in the future.
1.
Promoting energy-saving and carbon reduction initiatives by replacing aging equipment to enhance overall energy efficiency and operational stability.
2.
Conducting continuous annual maintenance for main substation equipment, including DC power supplies, transformers, extra-high voltage (EHV) lines, and high-voltage switchgear panels. This includes EHV insulator cleaning, periodic insulation oil testing across the entire plant, and annual maintenance for generators and Uninterruptible Power Supply (UPS) systems.
3.
Executing comprehensive maintenance for plant power and HVAC (Heating, Ventilation, and Air Conditioning) systems. Key activities include maintenance for generators and UPS equipment, statutory inspections of high-voltage electrical equipment at substations, and routine servicing of the administration building's chillers and on-site cold storage units.
Extreme Rainfall and Flooding Financial Impacts for the Current Period：
The water consumption charges for 2025 amounted to NT$268 thousand.
To address the potential increase in flood and accumulation risks under the long-term trend of climate change, the Group’s investment in insurance increased by NT$69,914 thousand compared to the previous year.
Considering the protection requirements against long-term physical risks, the Group allocated NT$806 thousand in maintenance and upgrade expenses for drainage system enhancements and flood defense improvement projects. These initiatives aim to strengthen the operational resilience of production sites, resulting in an increase in non-current assets.
Through proactive dredging, insurance risk transfer, and hardware infrastructure reinforcement, the Company is committed to reducing restoration costs and business interruption risks during medium- to long-term extreme weather events, thereby maintaining long-term financial stability.
1.
Water Consumption Levy Management：
Implementing the ISO 46001 Water Efficiency Management System to optimize water utilization and systematically address the impact of water consumption charges.
2.
Lean Water Management and Risk Prevention：
Actively promoting water-saving initiatives to reduce total water intake and consumption. This includes the periodic dredging of plant drainage systems and storm water intercepting ponds. Through proactive maintenance, we ensure drainage efficiency during extreme rainfall events, strengthening the site's defensive resilience against water resource volatility and physical climate risks.
Opportunity Introduction of Low-Carbon Energy Financial Impacts for the Current Period：
Through the procurement of renewable energy, the Company incurred NT$9,497 thousand in additional power purchase costs during this period. While this resulted in a short-term increase in operating expenses, it will—in the long term—reduce our reliance on traditional fossil fuels and effectively mitigate the impact of rising carbon fee costs. Furthermore, these initiatives will enhance the Company’s green competitiveness and overall brand value.
1.
Developing and constructing self-owned solar power plants to increase the proportion of self-generated renewable energy.
2.
Prioritizing natural gas as the primary fuel source for steam supply to reduce carbon intensity compared to traditional coal or heavy oil sources.
Enhancing Corporate Reputation and Brand Awareness Financial Impacts for the Current Period：
Driven by the rising market demand for low-carbon transition, sustainability-related products—including Heat-Reducing PVC Synthetic Leather and TPO Automotive Floor Mats—contributed a total of NT$17,260 thousand to operating revenue during this period.
Developing innovative products to actively transition and capture the B2C market：
1.
Developing products certified under the ISO 14021 international standard for environmental labels and declarations to verify recycled content.
2.
Advancing sustainable product development and enhancing resource efficiency throughout the product lifecycle to minimize environmental footprint.
3.
Promoting and expanding the use of recyclable packaging materials to support circular economy goals and meet consumer demand for eco-friendly solutions.
Resilience Assessment of Climate-Related Risks
Risk Significant Assumptions Selected Scenarios Impact Assessment and Resilience Evaluation
Transition Risk：
Carbon Pricing
1.
Taiwan will continue to implement the "Taiwan’s Pathway to Net-Zero Emissions in 2050." In alignment with this national strategy, the Company expects to achieve a 27% carbon reduction by 2030 and reach carbon neutrality by 2050.
2.
The Company has proposed a Voluntary Emission Reduction Plan that meets the designated reduction targets. This plan complies with the "Technological Benchmark Designated Reduction Rates" specified in Appendix 2 of the "Designated Greenhouse Gas Reduction Targets for Regulated Entities" public notice.
3.
Based on official reports from the Taiwan Climate Change Projection Information and Adaptation Knowledge Platform (TCCIP) and national meteorological observations: Climate models indicate that winters in Taiwan will gradually shorten, total annual rainfall will progressively increase, and the intensity of extreme rainstorms will show a rising trend.
1.
Stated Policies Scenario （STEPS）
2.
Net Zero Emissions by 2050 Scenario （NZE）
1.
Impact Assessment
STEPs：The Carbon Fee Review Committee of the Ministry of Environment (MOENV) initially suggested that carbon fee rates be phased in for adjustment. It is projected that between 2030 and after, the rates should rise to between NT$1,200 and NT$1,800 per metric ton.
NZE：According to IEA research, the effective carbon price in advanced economies should reach US$140 per metric ton (approximately NT$4,500) by 2030 to align with net-zero pathways.
2.
Resilience Capabilities
The Company will strictly execute its Voluntary Emission Reduction Plans to maintain eligibility for the MOENV’s preferential carbon fee rates, thereby minimizing the financial impact of carbon expenditures.
By proactively adopting high-efficiency energy-saving equipment and low-carbon energy sources, the Company aims to transform carbon neutrality pressures into a driver for process optimization. This strategy will solidify the Company’s competitive advantage within the international low-carbon supply chain.
Physical Risk：
High Temperatures and Unstable Energy Supply		 SSP 5-8.5
1.
Impact Assessment
The increasing number of consecutive days of extreme heat will keep cooling demands at peak levels for extended periods, leading to a significant accumulation of electricity expenditures. Furthermore, the risk of power rationing or blackouts due to regional grid overloads poses a severe threat, potentially causing unplanned production downtime and yield rate losses.
Prolonged high-temperature environments increase the risk of heat hazards in the workplace, impacting the health and safety of frontline personnel. Additionally, cooling equipment operating at full capacity for extended durations may shorten the service life of critical machinery.
2.
Resilience Capabilities
The Company strictly implements equipment maintenance protocols, intensifying routine servicing for core machinery such as compressors, generators, and air compressors to ensure operational stability under extreme weather. Through asset modernization and equipment upgrades, we effectively mitigate business interruption losses caused by heat-related shutdowns or power curtailment.
We continuously execute heat-insulation coating projects for factory buildings and upgrade the insulation for piping systems (both heating and cooling). These measures enhance thermal efficiency and significantly reduce overall energy consumption.
Physical Risk：
Extreme Rainfall and Flooding		 SSP 5-8.5
1.
Impact Assessment
The significant increase in the intensity and frequency of extreme rainfall may lead to drainage failures around plant sites, triggering flood disasters. This poses a direct risk of physical loss, including damage to production equipment, raw materials, and inventory.
Infrastructure damage and logistics paralysis caused by extreme storms can lead to interruptions in raw material supply and delays in finished goods delivery. Such disruptions adversely affect overall operational performance and the Company’s ability to fulfill contractual obligations to customers.
2.
Resilience Capabilities
The Company is strengthening on-site flood defense infrastructure and implementing elevation projects for critical equipment rooms. These measures are designed to mitigate the risk of damage to physical assets during extreme flooding events.
We are optimizing our Business Continuity Plan (BCP) by establishing cross-regional backup supplier lists and integrated logistics solutions. These strategic preparations ensure the Company can effectively respond to supply chain disruptions triggered by extreme weather.
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
  • Company
  • Energy Conservation and Carbon Reduction Initiatives
  • 2025 Achievements
    Energy Savings (GJ) Carbon Reduation (tons CO2e)
  • CGPC
    (Main Plant)
  • Replacement of wastewater equalization pumps and blowers
    Replacement of direct current (DC) motors
    Energy efficiency improvement of wind turbines
    Energy efficiency improvement of natural gas Boilers
  • 16,693 889
  • TVCM
    (Linyuan Plant)
  • Replacement of the light fraction pump (P-6001A) with a high-efficiency pump
    Replacement of the OXY JOY air compressor motor (KM-6151)
  • 1,705 224
  • CGPCP
    (Linyuan Plant)
  • Replacement of air compressor equipment
    Replacement of hot water pumps (PU-1205A/B)
    Conversion of dryer hot water coils to steam coils
  • 19,946 1,477
  • Total
  • 38,344 2,590
Note1.
Data source: Annual Energy User Energy Conservation Audit Report, Energy Administration. (Please refer to the attached table for investment amounts and energy saving/carbon reduction details.)
Note2.
This plan excludes carbon reduction benefits from offset projects. Please refer to the "Instructions for Application of Greenhouse Gas Offset Project Credits" for further details.
Note3.
The performance of energy saving and carbon reduction initiatives (annual carbon reduction) is equivalent to the annual carbon absorption of 6 Da'an Forest Parks.
Circular economy
CGPC is committed to promoting circular economy policies. Through raw material recycling and reuse, process improvements, and resource circulation management mechanisms, the Company creates low-carbon, green products. CGPC actively drives key initiatives—including pure water recovery, scrap material diversion, waste heat and condensate recovery, as well as packaging material recycling and sharing. The internal and external recycling and reuse achievements for 2025 are as follows:
Energy management
CGPC’s plants primarily use purchased electricity, natural gas, and fuel coal. The scope of energy use inventory in 2025 includes CGPC Main plant and TVCM and CGPCP plants in Linyuan, with a coverage rate of 100% and obtained ISO 50001 as well.
2025 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
Target 1.5% 1.5% 1%
Results 1.29% 2.17% 1.40%
1.
The data comes from the Energy Administration’s annual energy conservation inspection system reporting form.
2.
Description of achievement rate: TVCM and CGPCP have already met their energy-saving rate targets. CGPC 2025 equipment improvement plan focuses on the replacement of outdated recombination tanks. Since this project has not yet been completed, the current energy-saving rate is below target. However, once the recombination tank project is finalized, the energy-saving rate is expected to exceed the target in 2026.
Energy consumption for per unity unit products during the last three years (Unit: GJ/tones)
  • 2023
  • 2024
  • 2025
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)
  • 2023
  • 2024
  • 2025
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
  • 2023
  • 2024
  • 2025
CGPC
  • 2023
  • 2024
  • 2025
TVCM
  • 2023
  • 2024
  • 2025
CGPCP
Notes:
1.
Scope of inventory in 2025: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.95 (Notes on Scopes 1 and 2), and P.96 (Notes on Scope 3) of the 2025 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.

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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 2025, the cumulative installed capacity will reach 1,880.88 kWp and the purchased green electricity will reach 154,000 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 123 100% of electricity generated from May to December 2022 was sold to Taipower under the Feed-in Tariff (FiT) scheme.
2023 173 All sold in bulk to Taipower.
2024 254 All sold in bulk to Taipower.
2025 223 2.1 million kWh of electricity was sold to Taipower under the Feed-in Tariff (FiT) scheme, while 130,000 kWh was wheeled for self-consumption.
Total 773
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.
In 2025, TVCM Linyuan Plant procured a total of 1.653 million kWh of green electricity and Renewable Energy Certificates (RECs), continuously increasing its green power ratio to realize its energy transition goals.
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