To all King Yuan Fu staff members:
2022 was a year of unprecedented global turmoil and upheaval. In the face
of these arduous challenges, we managed to minimize the impact of the macroenvironment
on our corporate operations and deliver performance superior
to our competitors as a result of your concerted efforts. I’d like to avail myself
of this opportunity to express my sincere gratitude to you for your valuable
contributions and adaptability over the past year.
The biggest black swan event in the first half of 2022 was the outbreak of the
Russia–Ukraine War, a major geopolitical conflict. This war directly resulted in
soaring raw material and energy prices. In addition, the lingering global economic
impact of COVID–19 prolonged container shortages and sky–high shipping
costs. The accompanying bullwhip effect coupled with constant interest
hikes in response to inflationary pressures sent the economy into a tailspin in
the second half of the year and brought about a situation of an unprecedented
disparity between surging global inventories and rapidly stagnating demand.
However, despite this global turmoil, discussions on ESG and climate change–
related issues have continued unabated. COP 27, which was successfully held
in Egypt, not only perpetuated the spirit of the Paris Agreement but also prioritized
the conversion of verbal commitments of participating nations into concrete
action. This clearly indicates that the severe impacts of climate change
humanity is currently facing demand immediate action. I’m sure you’ve all noticed
the mild winter temperatures in Taiwan in 2022, which are an inevitable
consequence of climate change.
In the face of this global storm of volatility, we haven’t slowed down our pace
in the field of ESG and sustainability. As a result, we were able to maintain
our excellent record of 2021 (our first year of sustainability reporting) in 2022.
Through the concerted efforts of our employees, we have earned numerous
awards and recognitions including a TCSA Corporate Sustainability Report
Award and a TCSA Growth Through Innovation Leadership Award, a SEAL
Environmental Initiatives Award, and nominations for a Global Views Monthly
CSR Award and a Circular Economy Award presented by the Chung-Hua Institution
for Economic Research.
◉ Environmental Dimension – Circular Economy
The circular economy concept represents the ideal solution for plastic materials.
On the foundation of the goal of increased rPET usage that we set for ourselves
in 2021 (the first year of sustainability reporting), we continue to forge
ahead on our path toward sustainability. In addition to the impetus provided by
the global market, legal regulations in Taiwan have also caught up with global
trends. At the end of 2022, the use of rPET for food contact applications was
finally approved by the Taiwanese Food and Drug Administration. King Yuan
Fu became the first enterprise in Taiwan to provide rPET food containers to
local retail sales channels.
◉ Social dimension – Employee care
In the first year of ESG, we mainly focused on the formulation of environmental
policies. However, we also fully understand that the environmental and social
dimensions are of equal importance and that employee care is a key link in
the latter dimension. We have therefore implemented the following initiatives
in this field:
▪ Sustainable Talent Development Program ” which aim s to improve t alent
retention and external talent recruitment.
▪ Adoption of a “flextime scheme” for indirect labor to offer employees a certain
degree of flexibility in terms of attendance without affecting work output.
▪ Implementation of an industry –leading initiative to “return brokerage fees to
migrant workers” which is in line with global trends in the field of human
We will persist in our efforts to create more friendly workplace environments
through the adoption of other feasible practices.
◉ Governance dimension – Energy conservation & carbon reduction
In early 2023, Taiwan passed the Climate Change Response Act, which represents
a new milestone in the country’s efforts to codify energy conservation &
carbon reduction goals into law. Following the completion of the ISO 14064–1 GHG
Inventory in 2021, we initiated the planning process for our energy conservation
& carbon reduction pathway with a focus on power consumption–our primary
carbon emission source. In 2022, we gradually perfected our power management
framework based on the adopted ISO 50001 system under guidance of the Taiwan
Green Productivity Foundation and the Foundation of Taiwan Industry Service.
The utilization of this optimized energy management system to ensure
maximum energy efficiency marks the next step prior to adoption of green power.
After realizing the goal of energy conservation, we will pursue our ultimate
objective of carbon neutrality by relying on green power.
Global economic volatility affecting business
operations all over the world is predicted to persist
in the foreseeable future. On the other hand, the
pace of global progress in the field of climate
issues is projected to accelerate. I expect all staff
members to maintain their unwavering commitment
to strengthening the links between industry
development and ESG–related activities in pursuit
of ongoing progress and maximization of our
influence in the field of sustainability. Let’s jointly
forge ahead on the path toward becoming one
of the “Best for the World.”