ESG

Climate Action

Climate Targets

Low-Carbon Transition Pathway
The first phase, "Energy Saving - Carbon Reduction," prioritizes greenhouse gas inventory, establishes baseline data, gradually builds a carbon management mechanism, and enhances energy efficiency through concrete and feasible energy-saving measures. At the same time, in 2024, green electricity will be introduced, marking the first step toward clean energy and carbon reduction. The second phase, "Energy Creation - Low Carbon," combines the company‘s actual operational needs to explore appropriately scaled energy-saving technologies, including intelligent management and production process optimization. The company also actively seeks cost-controllable renewable energy solutions or purchases green electricity certificates to expand the application of renewable energy, reduce the operational carbon footprint, and ensure that Daxin maintains its competitiveness in the low-carbon transformation. In the long-term third phase, "Integration - Zero Carbon," we will further advance circular transformation, integrate energy and resource recycling, enhance the efficiency of energy and resource utilization, and timely evaluate the introduction of zero-carbon technologies or the purchase of carbon credits for offsetting, in response to the global declaration and actions toward "Net Zero Emissions by 2050."


Climate Action Commitment
Daxin builds its climate strategy on a foundation of steady operations, setting prudent and pragmatic short-term (2025) and medium-to-long-term (2030) commitments. Carbon reduction is driven through systematic management and innovative technologies, including the annual implementation of energy-saving measures, investment in solar power generation, procurement of green electricity, and adoption of low-carbon refrigerants to progressively lower operational emissions and meet staged climate targets.

Strategy and Action Plan 2030 Mid- to Long-Term Goals 2025 Short-term Goals 2024 Execution Results
Enhance Energy Efficiency
Implement annual energy-saving measures through the management plan, adopting energy-efficient equipment and optimizing operations to improve energy performance.		 Cumulative Energy Saving Rate from 2022 to 2030 ≥12.5% Annual energy Saving Rate ≥1.5%
  • Implemented 32 energy-saving measures
  • Annual energy saving rate 3.0%
Building Low-Carbon Factories
Conduct annual greenhouse gas verification to identify plant emission hotspots and implement transformation actions such as adopting low-carbon refrigerants.
  • All plants certified under the ISO 14064-1 greenhouse gas management system.
  • Achieved 20% GHG reduction in existing plants.
  • Upgraded carbon management platform with expanded Scope 3 module.
  • Established a comprehensive product carbon footprint inventory database.
  • All plants certified under the ISO 14064-1 greenhouse gas management system.
  • Upgraded carbon management platform to expand product carbon footprint coverage.
  • Completed carbon footprint inventory for four main products.
  • All plants certified under the ISO 14064-1 greenhouse gas management system.
  • Reduced total greenhouse gas emissions by approximately 3.6% compared to the base year, with existing plants achieving a reduction of about 10.9%.
  • Completed carbon footprint inventory for four main products.
※ Note1 : The base year for greenhouse gas emissions is set as 2022.
※ Note2 : RE (Renewable Energy) indicates the proportion of renewable energy.
※ Note3 : Annual energy saving rate = electricity saved / (total electricity consumption + electricity saved)*100%.
※ Note4 : New Plant refer to those officially put into operation after2023, including the Advanced Manufacturing CenterⅡ - Daxin Semiconductor Materials Plant.
※ Note5 : Existing plants refer to all company operation sites excluding New Plant.

 

Climate Governance
Organizational Governance Structure
Daxin is fully aware of the impact and importance of climate change on sustainable operations. Therefore, the Sustainable Development Committee coordinates and promotes various action plans to comprehensively implement sustainable development. The Sustainable Development Committee evaluates environmental, social, and corporate governance issues related to operations, and refers to climate-related financial disclosures (Task Force on Climate-related Financial Disclosures, TCFD) to conduct "climate change risk and opportunity assessments." Based on these assessments, response plans are formulated and management targets are set. The progress of sustainability projects is reported to the Board of Directors annually. The Board supervises the implementation of these plans according to the reports and provides timely guidance and suggestions to strengthen the effectiveness of sustainability strategy execution.
Level Supervisory Organization Management Organization Working Group
Organization Board of Directors Sustainable Development Committee Environmental Sustainability Team
Authority and Responsibility Supervise the operation of sustainability programs and provide timely recommendations.
  1. Identification of material sustainability issues, climate risks, and opportunities
  2. Review sustainable development policies, plan strategies, and formulate Contingency Plan
  3. Report to the Board of Directors on the progress of sustainable development promotion
  1. Promote climate risk management, mitigation, and adaptation actions
  2. Track the progress of climate targets (once per quarter)
  3. Report climate risk management status to the Sustainable Development Committee (once every 1 year)

TCFD - Governance: Structure and Operations


Identification Management Process


Climate Impact Assessment
Major Climate Change Risks and Opportunities
The company refers to international sustainability trends and benchmark enterprises‘ TCFD reports to assess the likelihood and financial impact of various climate-related risks and opportunities. Through joint discussions between responsible departments and external experts, in 2024, Daxin identified a total of 7 major risks (including 6 transition risks and 1 physical risk) and 3 opportunities that require attention, and has developed corresponding response strategies.

Risk Type Risk Category Major Risk Issues Impact on Schedule Potential Financial Impact Key Response Measures
Transition Risk Regulations Government-imposed carbon fee Medium to long term Carbon emission costs under Taiwan‘s carbon pricing.
  • Annual greenhouse gas inventory per ISO 14064-1 with third-party verification.
  • In-house carbon management platform integrating inventory and reduction efforts across departments.
  • Installed self-use solar PV system to cut grid electricity use and emissions.
  • Procured green electricity and certificates to offset Scope 2 emissions.
Regulations Net Zero Emissions Medium to long term
  • Capital expenditure for green energy equipment.
  • Higher operating costs from purchasing green electricity.
Technology Low-carbon technology investment Short, medium, and long term
  • Capital investment in replacing energy-intensive equipment
  • Higher operating costs from energy-saving initiatives
 Promote and implement energy-saving measures (replacement of energy-consuming equipment, equipment improvement, and management enhancement).
Technology Low-carbon product substitution Short, medium, and long term R&D costs for low-carbon sustainable products. Invest in R&D resources to develop low-carbon products that enhance customer product efficiency and reduce carbon content
R&D costs for using low-carbon materials. Invest in R&D resources to develop low-carbon products that use low-carbon materials or can reduce energy consumption during the manufacturing process
Market Changes in customer behavior Long-term Higher operating costs from climate initiatives and carbon footprint verification
  • Evaluate participation in the CDP Climate Questionnaire Assessment.
  • Gradually establish a product carbon footprint database.
Market Increase in raw material costs Medium to long term Imported carbon taxes and higher electricity prices drive up raw material costs Introduce raw material carbon footprint management and assess the feasibility of switching to procurement of low-carbon materials.
Physical Risk Long-term Sea level rise Long-term Flooding causes production or supply chain interruptions.
  • Purchase relevant disaster insurance
  • Evaluate the real-time flexible scheduling mechanism in the production area
Opportunity Market Develop low-carbon products Short, medium, and long term Satisfy customer needs and increase revenue. Develop low-carbon products that can reduce the carbon content of customers‘ products and enter the low-carbon supply chain market.
Resource Efficiency Using high-efficiency processes Short, medium, and long term Reduce electricity consumption and lower operating costs. Implement energy-saving measures to mitigate rising electricity costs and future carbon fees.
Resource Efficiency Recycling and reuse Short, medium, and long term Resource recycling, reducing operating costs. Promote the recycling and reuse of waste solvents to reduce the consumption of new raw materials and the cost of outsourced incineration treatment.
Process by-product recycling to increase revenue. Promote the resource utilization of polyimide and process by-products, and resell to customers to create economic benefits.


For more information, please refer to Daxin Materials‘ 2024 Sustainability Report: Section 4.1 Climate Action.