2022

Nan Ya Plastics
Corporation

Sustainability ReportAbout This Report
Report Overview
This is the Sustainability Report (hereinafter "this report") of Nan Ya Plastics Corp. (hereafter referred to as"the Company"). The content is compiled based on the Global Reporting Initiative Sustainability ReportingStandards (GRI Standards) issued by the Global Report Initiative (GRI) in 2021 . This report presents thedata for the most recent 4 years and is expected to be published once a year. To communicate with our
stakeholders through this report effectively, we provide an accurate and detailed introduction to speciﬁc
actions and performance in Environment Protection(E), Social Welfare(S), and Corporate Governance(G)of the Company.

Publication Overview
Publication date of the ﬁrst
edition: December 2015
Publication date of the previous
edition: July 2022
Publication date of the current
edition: June 2023
Publication date of the next
edition: June 20242019 CSR Report2020 CSR Report

2021 Sustainability
Report˙Final draft of the Sustainability Report (ESG

Promotion Team submitted the report tothe president and chairman for review.)
˙Submit the report to the Sustainable
Development Committee and theBoard of Directors for approval in May.

Compilation of the
Sustainability Report

2022.09 to 2022.11

2023.01 to 2023.04

Set up material topics for the
Sustainability Report and holda kick-off meeting for the
Sustainability Report

2023.032023.04 to 2023.05

Verification by
third-party international
agencies.

Scope and boundaries of the Report

The reporting scope of this report mainly focuses on NPC and its subsidiaries in Taiwan, including Nan Chung
Petrochemical Corp., Nan Ya Printed Circuit Board Corp., and PFG Fiber Glass Corp. (hereafter referred
to as "subsidiaries in Taiwan". Among the subsidiaries, Wen Fung Industrial Co., Ltd, Wenling Technology
Corp., and Formosa Plastics Group Investment Corp. have a shallow impact on the consolidated revenue.
Therefore, relevant information from these subsidiaries is not disclosed). In addition, overseas reinvestments
are also excluded in the report. The data citation and disclosed boundaries are the same as in 2021.
Information disclosure period: January 1st, 2022 to December 31st, 2022.
The ﬁnancial data is publicly published after being audited by the CPA. Other statistical data are quoted
from public information published by government agencies and related websites and are presented inwords or numerical values. Any exceptions will be speciﬁcally stated in the report.

2022 Sustainability Report1Nan Ya Plastics Corporation

Editorial Principles and Reference Guidelines
NPC complies with " Procedure for Information Disclosure Filing of Environment, Social and Governance (ESG)" and " Procedure for Information Disclosure Application
Correction Filing of Environment, Social and Governance (ESG) " developed by the Taiwan Stock Exchange.
Issued unit

Framework/ Regulation

The United Nations, UN

UN Sustainable Development Goals, SDGs

Global Sustainability Standards Board, GSSB

Universal Standards 2021

Financial Stability Board, FSB

Task Force on Climate-related Financial Disclosures, TCFD

International Sustainability Standards Board, ISSB

Sustainability Accounting Standards Board, SASB

Account Ability Organization

Materiality, Inclusivity, Responsiveness, and Impact of
AA 1000 Accountability Principles Standard

Taiwan Stock Exchange Corporation

Taiwan Stock Exchange Corporation Rules Governing the
Preparation and Filing of Sustainability Reports by TWSE
Listed Companies

Structure of ESG Sustainability Promotion Organization
To effectively integrate and promote the work of ESG, NPC has the Chairman of the board as theorganizer to comprehensively manage related businesses and establish an "ESG Sustainability Promotion
Organization," which is responsible for formulating company-wide strategies on environmental protection (E),social welfare(S), and corporate governance (G). The organization also actively promotes the executionof various businesses, conducts regular performance monitoring, and timely adjusts relevant strategies andpromotion goals through continuous communication with stakeholders.

Board of Directors
Sustainable
Development Committee
Convener: Chairman

Vice Convener: President

Environmental
Protection(E)Person in charge: Executive
vice president and assistantvice manager of President's
OfficeSocialResponsibility(S)Person in charge:
Vice President of
President's Office

ESG Promotion Team2

Corporate
Governance(G)Person in charge:
Vice President of
President's OfficeAbout This Report

Third-Party Assurance
To ensure the transparency and credibility of this report, the disclosed information has been independently
veriﬁed by AFNOR Asia Ltd., a third-party international assurance authority. This report was veriﬁed based on
the Type 1 assurance of the AA 1000 v 3 assurance standard. The independence assurance statement is also
included in this report.

Contact Information
Thank you for reading this report. If you have any concerns or suggestions regarding this report, please feel
free to contact us and give us advice. Our contact information is listed below:

Nan Ya Plastics Corporation
Contact: Operating Analysis Section, President's Ofﬁce
Contact person: Mr. Chang
Email: NPC_ESG@npc.com.tw
Tel: +886-2-27122211 Ext: 5615
Address: 3F., 201 Dunhua North Road, Taipei (front building)This report is available for download at:https://www.npc.com.tw/j2npc/zhtw/csr_report.jsp

Nan Ya Plastics Corp.'s ofﬁcial
website "Download Reports"

2022 Sustainability Report3Contents
Message from the Chairman

5

About Nan Ya Plastics

7【ESG collections】Nan Ya
Plastics Corp.'s High-value Green
Innovation and Carbon-neutral
Climate-promoting Actions

13

Material topics Identiﬁcation andStakeholders Engagement20

1 Ongoing Sustainable
Governance Strategy

30

1.1 Remarkable Corporate
Governance33

1.2 Improve Business
Performance42

1.3 Essential Risk Management44

1.4 Issues of Special Concern

48

2 Product Value Expansion 50
2.1 Diversiﬁed ProductApplication

51

2.2 Green and Environmentalfriendly Innovation

56

2.3 Customer RelationshipManagement64

3 Green Environmental
66
Management Promotion
3.1 Commitment toEnvironmental Protection

72

3.2 Climate Action andStrategy76

3.3 Air Pollution Management89

3.4 Water Resource
Management

92

3.5 Waste Management andCircular Economy

98

4 Creating a Happy and Safe 102
Workplace
4.1 Human Rights

105

4.2 Talent Training andDevelopment

106

4.3 Workplace Safety

115

4.4 Supplier and Contractor
Management

127

5 The Pursuit of Co-prosperity 131
and a Better Homeland
5.1 Local Engagement

133

5.2 Social Contribution

141

Appendix143

1. ESG Comprehensive performance 144
2. Global Reporting Initiative(GRI)
Comparison Table

155

3. Sustainability AccountingStandards Board (SASB)
Comparison Table

159

4. Corporate Governance Evaluation 162
ESG Indicator Disclosure item
5. Rules Governing the Preparation 163
and Filing of Sustainability Reports
by TWSE Listed Companies-Plastics
Industry
6. Independent Assurance Opinion
Statement

164

Message from the Chairman

Message from the Chairman
In order to actively promote sustainable development, NPC strengthens corporate governance,
promotes environmental protection business, and implements corporate social responsibilities withthe business philosophy of "diligence, perseverance, frugality, and trustworthiness" to create a safeand happy workplace. In recent years, the Company has been actively concerned with the global
climate-changing issues and is committed to developing sustainable new blue ocean business
opportunities, gradually integrating environmental protection sustainability into operations, andleading the industry as a whole toward a new, sustainable way of living.
In 2022 , all of our operations and management have been continuously optimized with the joint
efforts of our colleagues. The Company is continually selected as a constituent of the "FTSE 4 GoodTIP Taiwan ESG index". The Company also obtained excellent A- or above results in both CDP
climate change and water evaluation. Besides, the MSCI ESG score also improved from BB to BBB.
In the future, we will uphold the solid foundation laid in the past and continue to move toward thegoals of "Sustainable Operation, Social Contribution".
Facing the ever-changing business environment, we continue to promote "optimizing productportfolio, actively expanding the market, and creating maximum efﬁciency in production capacity,""making good utilize of smart technology to accelerate digital transformation and improving
the Company's operating efficiency," "strengthening operational resilience and transcending
governance indicators, and move towards the Company's sustainable development" and otheroperating policies to create operating value and improve overall operating performance.
Meanwhile, the Company has adhered to environmental protection concepts such as "circular
economy" and carried out water and energy conservation, waste reduction, and recycling
operations. The Company has strenuously tried to promote waste reuse and resource utilization inrecent years. We reduced resource consumption through multiple recycling and created the mostsigniﬁcant economic beneﬁt.
In addition, with the goal of "carbon neutrality by 2050 ", we actively promote carbon reduction
strategies, including "Low-Carbon Energy Transition," "Circular Economic of Energy Reservation
and Carbon Reduction," "Increase the use of renewable energy," "Carbon Capture Technology
Application," etc. Great efforts were made on low-carbon energy transition, circular economy,
green products, and low-carbon manufacturing processes.
The Company actively researches and develops high-value green products and provides
customers with various eco-friendly product options. Some products have obtained environmental
labels, green building labels, or global Textile recycling standard certification. For example, theCompany's "ICE COOL insulation films" product won the Environment Protection Administration's" 2022 Annual Low Carbon Product Award-Excellence Award". Take the total sales of 271 thousand
tons of PET bottle recycled products in 2020 - 2022 as an example, approximately 470 thousand tonsof greenhouse gas emissions can be reduced, equivalent to the carbon sequestration of 1 , 199
Daan Forest Parks.

2022 Sustainability Report5Nan Ya Plastics Corporation

In terms of creating a safe and happy working environment, our core value is" all-around security".
Only a safe and comfortable workplace can attract talented people, enhance the Company's
core competitiveness, and become a good foundation for sustainable development. Therefore,
we established a positive industry safety culture by continuously improving standard operatingprocedures, implementing safety actions, preparing safety tools, educating safety awareness, andcultivating safety attitudes.
In addition, NPC provides employees with generous salary benefits, solid training, and good
promotion channels. In 2022 , we promoted several welfare measures such as the "Maternity Beneﬁts
Plan" and "Paid Health Examination Leave," hoping to improve the physical and mental health of
employees' work environment, and family can all receive appropriate care. In the future, we willcontinue to promote the participation of all employees in industrial safety activities, implement ISO
45001 and TOSHMS occupational safety and health management systems, and strive to provide
employees with a safe and secure working environment.
Regarding contributing to society, the Company adheres to the spirit of "what is taken from thesociety is used in the interests of the society." In 2022 , the Company donated Wilderness No. 2 to
The Society of Wilderness to support ecological restoration efforts and environmental education
together, as well as continuing to participate in activities organized by local communities anddisadvantaged groups. We also encourage our employees to provide warmth and assistance tothe community with empathy and support to bond with the community. The seven foundations
and charitable trusts established by the two founders have long been contributing resources andefforts to various ﬁelds, including education, medical and health care, disadvantaged groups, andcultural and sports promotions. For example, we have been helping children with developmental
delays for a few years and improving the quality of service provided to institutions that care fordisabled people. Moreover, we have also assisted in rehabilitating drug addicts to acquire skills thatwould help their reintegration into society. We wish to bring happiness and hope to every corner ofsociety.
In the future, we will continue to comply with the business philosophy of "diligence, perseverance,
frugality, and trustworthiness" to implement and promote corporate governance, perpetualbusiness operation, develop a sustainable environment, and actively engage in social welfare
activities. We will listen and respond to the needs of the environment and society and work towards
this direction. The Company can contribute more to the environment and society through positive
interaction and continuous improvement. Social responsibility is integrated into our business while
we strive for sustainable development. We want to protect our planet along with our stakeholders
by caring for the environment and society to create a happier and more beautiful future.

Nan Ya Plastics Corporation
Chairman

Chia-Chau Wu
2023

6About Nan Ya Plastics

About Nan Ya Plastics
Company Introduction
Nan Ya Plastics Corporation (hereafter referred to as "the Company" or "NPC")
was founded in 1958 and initially specialized in plastic secondary processing
products such as PVC pipes, PVC leather, and PVC sheeting. The Company
gradually expanded to chemical products, polyester fibers, electronicmaterials, and mechanical and electrical engineering projects. NPC has
expanded overseas to the United States, China, and other foreign businesssince 1979 . The Company has established itself as an international anddiversiﬁed business. (Please refer to the "Company History" section on NPC's
website for the Company's history.)"Company History" on
NPC website

Nan Ya Plastics Corporation
Date of establishment: August 22 , 1958
Listing Date: November 5 , 1967
Major Operations: electronic materials,
chemical products, polyester ﬁbers,
plastics processing, and mechanicaland electrical engineering
Operating Locations: Taiwan Taipei
Branch: 3 F., 201 Dunhua North Road,
Taipei (front building)
Registered address: 101 , Shuiguan Road,
Renwu Dist., Kaohsiung City 814

Global Locations: Taiwan, China, the United States ( 6of the subsidiaries listed in the consolidated ﬁnancial
statements are from Taiwan, and 22 are overseas)
Capital: NT$ 79 , 308 , 215 , 890
Number of employees in 2022 : 31 , 736 employees (thisReport is mainly based on 18 , 389 employees, including
Nan Ya Printed Circuit Board Corp., PFG Fiber Glass Corp.,
and Nan Chung Petrochemical Corp. The number does
not include overseas subsidiaries listed in the consolidated
ﬁnancial statements)
2022 Revenue: NT$ 355 , 183 , 300 , 000

Note: (1) The source of employee numbers comes from the 2022 Annual Report (as of December 31, 2022, including thesubsidiaries in the consolidated ﬁnancial statements).
(2) The revenue, global locations, and number of subsidiaries are based on the data in the 2022 consolidated ﬁnancial
statements.

Business Philosophy
The Company's business philosophy is to pursue the rationalization of everything with the attitude of"diligence, perseverance, frugality, and trustworthiness", and to work toward the ultimate goal of "to aim at
the sovereign good". While pursuing "perpetual business operation", the Company also strives to achieve thepurpose of "dedication to the society". NPC is committed to becoming a company that brings happiness toemployees, a sense of security to investors, and trustworthiness to society.

Diligence, Perseverance,
Frugality, and Trustworthiness
Diligence is using wisdom to maintaina simple and realistic work attitude,
get to the bottom of the matter, seek
constant improvement, andrationalize corporate management.

Perpetual Business Operation
To improve work quality and efficiency
and ensure all operations comply withstatutory requirements, we implement
management rationalization tostrengthen long-term profit potential. In
addition, the Company provides
customers with high-quality and low-cost
raw materials to achieve a mutually
beneficial and strong partnership.

To Aim at the Sovereign Good

NPC’s
Business
Philosophy

Due to the rapid changes in theexternal environment, therationalization of corporate
management must improve
continuously to change the existing
situation. Therefore, the Company canseek innovation and development.

Dedication to Society
The Company adheres to the purpose of“what is taken from the society is used in
the interests of the society,” focusing on
the development of medical andeducational public welfare. We
contribute corporate resources to thebenefit of all humanity.

2022 Sustainability Report7Nan Ya Plastics Corporation

Locations of Global Operations▪Total Plant Area :19

China▪Total Invested Company : 28

Plant Area: 11
Invested Company: 14

United State

TaiwanPlant Area: 3
Invested Company: 4Hong Kong

Plant Area: 5
Invested Company: 6

Plant Area: 0
Invested Company: 4

Source: 2022 Consolidated ﬁnancial statements (For more information please refer to the "Investment" on the NPC website)

Formosa Plastic Group Product Association Diagram
The Company is affiliated with Formosa Plastics Group (FPG). Through the vertical integration of upstream
and downstream sectors, the Company actively lowers production costs and increases economic scale tomeet customer demand for raw materials and enhance market competitiveness. In terms of oil reﬁnement,
petrochemical raw materials, plastics, ﬁbers, and electronics, FPG has established an integrated supply chain.

Crude
Oil

Refining
Naphtha,Gasoline,
Diesel,Kerosene,
Fuel Oil,Base Oil,
LPG

FPCC

Petrochemical
Upstream
Basic rawmaterials
Alkenes:
Ethylene/
Propylene/
Butadiene
BTX:
Benzene/Toluen
e/ PX/ OX/ MX

FPCC, FCFC

Petrochemical Midstream

Petrochemical Downstream

Raw materials of artificial fibers(EG/PTA/AN)
Chemical Product(ECH/AE/1,4BG/SAP/NBA/BPA/
DOP)

Synthetic Resin(Epoxy/ PU Resin/Phenolic Resins)

Yarn Spinning(polyester/Nylon/
Rayon/Modacrylic/
Spandex/Carbon Fiber/Fiber
Glass)
Plastic Processing(PVC
Sheeting/PVC leather/Rigid
Film/POM Door andWindows/Synthetic Paper)
specialty chemicals/additives
Electronic Materials(Glass
Yarn/Copper Clad
Laminate/Printed Circuit Board)
Synthetic Leather

FPC, NPC, FCFC

FPC, NPC, FCFC

Plastic Raw Materials(General
Plastics: PVC/PE/PP/PS/ABS)
Engineering Plastics(PC/PBT/POM/Nylon)

Downstream
Application
Green Energy,
BiotechIndustry,
Medicaland
Health Care,
Semiconductor
Industry,
Printed Circuit
Board Industry,
Mechanical/St
eel,
Transportation

Note: Please refer to P.173~P.177 of the Annual Report for details on the "Raw Material Consumptions" and "Production and Sales Volume".

8About Nan Ya Plastics

Participate in external association
NPC is actively involved in various industry associations and serves essential functions ranging fromdirectors and representatives for speciﬁc associations to assist Taiwan's industries in improving their businesscapabilities. We hope to contribute to the overall industry by sharing the latest market information, changes
in supply and demand, and technological information with the industry.
External Association Name

Position

Taiwan Synthetic Resins Manufacturers Association

Managing Director

Petrochemical Industry Association of Taiwan

Director

Taiwan Man-made Fiber Manufacturing Industries Association

Managing Director/ Director

Taiwan Textile Printing, Dyeing & Finishing Association

Director

Taiwan Accreditation Foundation

Director

Other external associations: Taiwan Responsible Care Association, Taiwan Printed Circuit Association, Taiwan
Association of Machinery Industry, etc.

At the same time, NPC is highly concerned about environmental sustainability issues, such as climatechange, and actively participates in the evaluation and initiatives of various sustainability organizations onsustainability issues, hoping to have a sustainable impact and build a prosperous living environment.

Participate in the Carbon Disclosure Project (CDP) evaluation
Organization: CDP
Since 2018, we have actively participated in CDP climate change and water
security questionnaire evaluations

Become a TCFD Supporter
Organization: TCFD●

Agreed with the TCFD initiative and signed the commitment letter in 2021●

The TCFD framework has been used to promote climate change
management since 2018, and the ﬁrst TCFD report was published in 2022

Science Based Targets (SBT)
Organization: SBTi
● Agreed with the SBTi and signed the commitment letter in 2021
● The targets were approved in March 2023

Domestic Marine Debris Recycling Promotion Organization
Organization: Marine Debris Recycling Coalition
Agreed with the concept of "marine waste recycling" and joined as a
coalition member

2022 Sustainability Report9Nan Ya Plastics Corporation

NPC Sustainability Performance● The MSCI ESG rating was raised from BB to BBB.

● The Company was selected as a constituent of the "FTSE 4 GoodTIP Taiwan ESG index", "FTSE TWSE Taiwan 50 Index", and "TWSE
CG 100 Index".

● The "Sustainable Development Committee" was establishedunder the Board of Directors.

● 2022 customer satisfaction survey results indicated an overall

score of 4 . 3 points, accounting for 86 % of the total score.

Economic
Aspect● No major violations occurred in 2022 .

● NPC's "ICE COOL Insulation Film" was the ﬁrst thermal insulation

ﬁlm product to receive the domestic label of carbon footprint/
carbon footprint reduction. It has also been approved by the
Low Carbon Building Alliance (LCBA) and the Taiwan Green
Development Foundation to lower air conditioner electricity
consumption by 12 . 4 % 15 . 2 %.

● The Company received "Leadership Level (A-)" in the climatechange sector and received "Leadership Level (A)" in the water
security sector in the 2022 Carbon Disclosure Project (CDP).

● The

Hsinkang switchboard plant has been approved to
install the facilities with 1, 500 kw during December 2022 . The
application for renewable energy certiﬁcates is in progress.

● NPC published the ﬁrst TCFD report in 2022 .

Environment
Aspect● The 2022 air pollutant emissions of the Company decreased by

185 . 5 tons for SOx, 330 . 93 tons for NOx, 555 . 57 tons for VOC,
and 12 . 86 tons for TSP compared with 2021.

● The

Company was granted the "Golden Medal " ofManufacturing Industry Happiness Enterprise from 1111 Job Bankin 2022 .

● Employee hiring of the Company and subsidiaries in Taiwan:

more than 99 % are permanent employees, and 92 % are
Taiwanese citizens.

● In 2022 , the average monthly voluntary resignation rate from theCompany and its subsidiaries in Taiwan was 0 . 61%.

● The Company had no major fatal occupational accidents in

SocialAspect2022 , and various occupational accident indicators, including
disabling frequency rate (FR) was 0 . 21 , disabling severity rate(SR) was 1 , and frequency-severity indicator (FSI) was 0 . 01 , areall better than 2021 indicators.

● NPC implemented the "Employee Maternity Subsidy" project

starting July 2022 . Each newborn can receive maternity beneﬁts
of $ 20 , 000 and monthly childcare beneﬁts of $ 2 , 000 until age 6 .

● NPC donated "Wilderness No. 2 " to The Society of Wilderness topromote environmental education and ecological restoration
work jointly.

10About Nan Ya Plastics

NPC Awards
ESG Sustainability Assessment

MSCI ESG rating was raised
from BB to BBB in 2022 .

2022 CDP assessment:"Climate Change ": Leadership
Grade A(Leadership level for 5
consecutive years)"Water Security": Leadership
Level A
(Leadership level for 3
consecutive years)

FTSE 4 Good Index Series
FTSE 4 Good TIP Taiwan ESG
index

6 - 20 % of the 9 th Corporate
Governance Evaluation System
FTSE TWSE Taiwan 50 Index
TWSE CG 100 Index
TWSE HC 100 Index
Taiwan Environmental Friendly
50 Index

ESG Sustainability Initiative

The science-based carbon
reduction targets SBTi wereapproved in 2023

Agree with the TCFD
initiative and signed thecommitment letter in 2021 .
Published "NPC 2021 TCFD
report" in 2022 (the ﬁrst
TCFD report)

Became a member of the"Marine Debris Recycling
Coalition" of the Ministry ofEnvironment.

2022 Sustainability Report11Nan Ya Plastics Corporation

ESG Sustainability Awards

2022 Awards for excellent
trading business of the Ministryof Economic Affairs
The "Best Trade Contribution
Award"The Taiwan Institute of
Directors
The 2022 Foreign Investment
Select Taiwan Best-in-Class 100

1111 Job Bank
The "Gold Medal" of
Manufacture Industry
Happiness Enterprise in 2022

"Taiwan Excellence Award"
from the Ministry of Economic
Affairs (Plastic 2 nd Division,
Switchboard Section ofEngineer and Construction
Division)" 2022 Energy Saving
Benchmark Award - SilverAward in Group A " of the
Ministry of Economic Affairs" 2022 Industrial Greenhouse
Gas Reduction Outstanding
Manufacturer - Silver Award
in Group A" of the Ministry of
Economic Affairs(PA plant)

Chiayi plant I and plant II, Mailiao
plant (ethylene glycol plant)

Yunlin County Government"Excellent Unit inOccupational Safety and
Health"(BPA plant)" 2022 Low Carbon ProductAward" of the Ministry ofEnvironment

Taiwan Architects
Association

The "Certiﬁcate ofAppreciation" of The Society ofWilderness(NPC donated land in the
Xiushan section of Xizhi Districtfor ecological conservation)
12(ICE COOL insulation ﬁlm
products in Plastic I Division)" 2022 Excellent Exhibitor
Corporate Image Award"(Plastic 2 nd Division)About Nan Ya Plastics【ESG collections】Nan Ya Plastics Corp.'s High-value Green
Innovation and Carbon-neutral Climate-promoting Actions
In order to actively seize transformational opportunities, NPC pays close attention to the development of climatechange challenges. It establishes carbon reduction goals and strategies based on the FPG's plan for "Carbon
Neutrality by 2050 ." Additionally, the Company participates in TCFD, SBTi initiatives, and CDP evaluations. It also
conducts self-examinations to determine the appropriateness of different strategies and adjusts as necessary.
The Company also establishes partnerships with signiﬁcant domestic and international brands to affect climatechange and together develop new sustainable value.The Company's main actions are listed below:【Carbon Reduction Target-Comparison of Carbon Neutrality Paths】

Although NPC has a variety of carbon reduction targets due to different purposes, they all aim to achieve"carbon neutrality by 2050 " as the ultimate goal. When conducting KPI performance management and control
tracking, the one with the most stringent absolute carbon emission targets is used. It is used for management
purposes and does not affect the determination to reduce carbon emissions due to different goals. In addition,
the carbon neutral path comparison between FPG and NPC is as follows:

FPG Carbon Neutrality Path
Stage

Short-term goal

Medium-term goal

Long-term goalSet 2007 as the baseline year

Reduce carbon by 20 % in 2025

Reduce carbon by 35 % in 2030

Carbon neutrality by
2050

NPC Carbon Neutrality Path
Stage

Short-term goal

Medium-term goal

Long-term goal

External commitment goals (following FPG goals)
Set 2007 as the baseline year
( 6 . 95 million tons of CO 2 e)

Reduce carbon by 20 % in 2025
( 5 . 56 million tons of CO 2 e)

Reduce carbon by 35 % in 2030
( 4 . 52 million tons of CO 2 e)Carbon neutrality by
2050

Stricter internal management goals
Based on 2020
( 5 . 92 million tons of CO 2 e)

Reduce carbon by 12 . 5 % in
2025
( 5 . 18 million tons of CO 2 e)

Reduce carbon by 25 % in 2030
( 4 . 44 million tons of CO 2 e)Carbon neutrality by
2050【Carbon Reduction Strategy】

Four major carbon reduction strategies have been developed and actively promoted: " Low Carbon Energy
Transition," " Energy Saving and Carbon Reduction and Circular Economy," " Increase Use of Renewable Energy,"and " Carbon Capture Technology Utilization." As a result, the Company is optimistic that it will achieve the 2030
reduction target on time. NPC is going to adopt negative emissions technology at the proper moment in the
future to ensure that the goal of "carbon neutrality by 2050 " is met. The following are brief descriptions of theCompany's four major carbon reduction strategy cases for 2022 :Low Carbon
Energy Transition
Energy Saving andCarbon Reduction
and Circular
EconomyReplaced the coal-burning boilers at the Shulin utility factory and Chiayi utility factorywith gas-burning boilers. The 40 tons of oil-burning boiler at the Kung San Site was
replaced with gas-burning boilers. The annual carbon reduction is estimated to beapproximately 422 , 000 tons/year.
For EG- 4 carbon dioxide emission and waste heat, implemented the Organic Rankine
Cycle system power generation improvement project. The annual carbon reduction isestimated to be approximately 13 , 471 tons/year.
Through AI technology, the process condition can be optimized in order to reduce
raw material and energy consumption: For example, Petrochemical Division II BPA
Plant: reduced phenol consumption of 1 , 650 tons/year, acetone of 660 tons/year;
Petrochemical Division III EG Plant: reduced vinyl consumption of 3 , 867 tons/year.

2022 Sustainability Report13Nan Ya Plastics Corporation

Increase Use ofRenewable Energy

Carbon CaptureTechnology
Utilization

The registration of the 195 kW solar power generation equipment at the
Hsinkang Rigid Fabric Plant and the 1 , 500 kW solar power generationequipment at the Hsinkang Switchboard Plant were approved. And theregistration of Switchboard Plant for the renewable energy certificates iscurrently under application.
Promoted Hsinkang Site (Glass Fabrics Cloth Plant I~IV), Chiayi Site, Miliao Siteand other sites' solar power generation equipment construction investment
project: Expected installation capacity: 51 , 201 kW.
EG Plant and 2 EH Plant continue to provide approximately 100 , 000 tons of
CO 2 to downstream customers as raw materials.
Reuse: Continue to promote electronic and industrial liquid CO 2 factory
expansion and construction project; and I 910 waste gas incinerator carbon
dioxide recycling.
Reduction: Continue to review, and promote the additional installation projectsof CO 2 absorption towers, and to increase the catalyst selection rate; and use
the catalyst of the highest performance, to reduce side reaction.

【NPC Promotion Case】

1. CO2 Capture and Reutilization in Production Process
The CO 2 produced by NPC process has been supplied to downstream manufacturers for use at
100 , 000 tons/year, and an additional 10 , 000 tons/year will be converted and synthesized by itself. A
total of 110 , 000 tons of CO 2 have been captured, recycled and reused. The recycling and reuse of
the other CO 2 is under planning. NPC hopes to achieve 100 % recycling.
Taking the EG Plant as an example, out of the 380 , 000 tons of CO 2 generated through capture of theside reactions in the process per year, 100 , 000 tons have been recycled to produce acetic acid andliquid carbon dioxide by downstream manufacturers per year. Besides, the expansion of electronicgrade and industrial-grade liquid CO 2 that under planning, also enables to recycle CO 2 .

Sidereactions

Recycling Status

Absorb withcarbonate
CO2

EO Production
Process

Generating
CO2

Stripping CO2
380,000 tons

Sale to downstream
manufacturers 100,000
tons/ year
Emission 280,000
tons/year

The Expansion Plan

Industrial-grade Liquid CO2

Electronic-grade Liquid CO2(Provide for ethylene carbonate)(Provide for the semiconductor industry)

CO2 fully recycled, with zero emissions

14

About Nan Ya Plastics

2 . Low-carbon Product Promotion Methods and Results
NPC's environmentally friendly and sustainable products are currently focusing on "PET bottle recycling","fabric recycling", "material simpliﬁcation" and "dope dyed PET product development", the key points
are as follows:

˙Using recycled PET bottles to produce
polyester resins can reduce carbon
emissions by 72% compared to traditional polyester resins.

cre˙Using AI learning, recognition accuracy
reaches over 93%, and one piece ofused clothing can be identified
Fabevery second.
ri

c

r

this new technique. Dye is added
during the fiber spinning stage, saving
97% water and achieving a nearly waterless dyeing process.

˙This new dyeing technique can provide
more than 1,000 colors, achieving a wide
color gamut and suitable chromaticity. It
has the advantages of good durability
and is not easy to fade.

iye˙The Company has develve d PET
lopoped a new dyeing techmennique and obtained a patent fortt
M a lifier

ed e
Dop ct du
prod

Recycling formaking a better
environment

ca al
ti o
n

ling
yc
ec

PET b
ott
le

˙After recycling, 90% of them are used in
product filament which is more
complicated and high-vallingue-added filament.
yc

˙Cooperate with industry-leading brands torecycle their stored fabrics, cut scraps, andused clothes to achieve a circular economy
in the fabrics industry.

si m

p

˙To expand the recycling volume, comprehensive development and design of single
materials products to make recycling moreconvenient and expand functions for recycled
products.

3 .New Dope Dyed Technology- CHROMUCH PETAs the traditional bath dyeing process needs to use
water for 60 liter/kg, the "dope dyed PET" can save
97 % of water, the product features are as follows:● Satisﬁed the goal of reducing the water footprintof brand customers● Provided thousands of colors with excellent

colorfastness (grade 4 ~ 5 )● SAYA+ CHROMUCH = The best solution foreliminating most of the environmental impact
posed by PET yarns.

CHROMUCH PET offers wider range ofcolor options

2022 Sustainability Report15Nan Ya Plastics Corporation

80
60

Water consumption
64.3

40
20
0

Piece Dyed

97%

2.15

CHROMUCH

KG
KG

5
4

Carbon emission

4.415

78%

3
2

5

Energy consumption
4.311

4
3
2

1

0

KG
KG

Piece Dyed

0.952

CHROMUCH

KG

64%
1.56

1

0

KWH

Piece Dyed

CHROMUCH

4 . NPC Ice Cool Insulation Films obtained "Carbon-Footprint Reduction Label"
Description● Product

name: NPC ICE COOL heatinsulation ﬁlm● The issuance date of the Carbon-footprintlabel certificate and carbon footprint
reduction label certiﬁcate: May 12, 2022.

● Unit carbon emissions: 10 kg CO2e/square meter.

● Carbon reduction ratio: 42.62% (carbon reduction 7.330 kg CO2e /product carbon footprint baseline value is 17.2kg CO2e).

● This product uses non-toxic materials. The primary material is PET(polyethylene terephthalate) film. After three coating processes,
it becomes a film with high-efficiency resistance to solar radiationand heat. Mainly used in automobile and architectural glass, it has
explosion-proof, high light transmittance, and high IR and UV blocking
properties (anti-ultraviolet), which can reduce energy consumption
and ensure the safety of internal space.

● This case is the ﬁrst carbon footprint/carbon footprint reduction label

for thermal insulation ﬁlms in Taiwan. It has been tested and certiﬁedby the LCBA and can reduce air conditioning power consumption by
12.4% to 15.2%.

【Case sharing on jointly promoting energy conservationand carbon reduction projects】
1 . Internal carbon pricing
To strengthen the personal awareness of carbon reduction among all employees, NPC implemented
an internal carbon pricing mechanism in 2022 , referring to the draft of the "Climate Change Response
Act." Calculate carbon fees and price increases for excess carbon emissions exceeding the target
value, complete system planning and establishment, and incorporate relevant carbon costs into
internal management proﬁt and loss reports. The report serves as the basis for implementing carbon
risk management and continuing to formulate greenhouse gas emission reduction measures. Relevant
information is also an essential indicator for performance evaluation, product operation, investment
evaluation, and other matters to maintain NPC's competitiveness16

About Nan Ya Plastics

2 .The layout of Green Energy-Investment in Formosa Smart Energy Tech Corp.
In response to the global energy conservation, carbon reduction, and new energy development
trends, and promote the transformation and development of the energy industry. NPC was jointly
established "Formosa Smart Energy Tech Corp." with other companies. Formosa Smart Energy Tech
Corp. will integrate the energy-related departments within the enterprise to build a layout in the newenergy industry. The description is as follows:● Approval schedule: The Board of Directors approved

the proposal in May 2022.

● Investment amount: The capital amount is NT$7 billion.

NPC invests 1.75 billion, with a shareholding ratio of 25%.

● Formosa Smart Energy Tech Corp. plans to enter four

major ﬁelds:①Energy saving、②Energy storage 、③New energy、④Recycling。

3 . Sbsidy for employees to purchase/replace electric motorcycles
NPC directly subsidized employees to purchase new (replacement) electric motorcycles startingin 2022 , based on the principle of equivalent to the total government subsidy amount. In addition,
NPC will collaborate with domestic electric motorcycle manufacturers to jointly implement carbon
reduction. The instructions are as follows:● Subsidy amount:NT$10,000 for newpurchases, NT $ 16,000 for trade-in
electric motorcycles.
● Budget:Based on the estimated
12,172 people in NPC when the
project was planned in November
2021, the total estimated subsidy
amount is approximately NT$ 122
million~ NT$ 195 million.
● Estimated benefits: Annual carbon
reduction of approximately 2,533
tons/year.
● Actual number of people applying
for subsidy in 2022: 309 people
applied for the subsidy, andthis project will continue to be
implemented.

FPG subsidizes employees to purchase new(trade-in) electric motorcycles(Take employees registered in Taipei City as an example)

Subsidy fromgovernment

Subsidy
from FPG

electric motorcycle trade-in NT $ 31,200/ per motorcycle
NT$70,000／set
newpurchase NT $ 45,500/ per motorcycle＝ staff price

55%
35%

Note: The car price is based on ViVA MiX KEYLESS as an example

Government electric motorcycle
subsidy project

Subsidy
project

Newpurchase"Happy Enterprise, One "Ride" to Reduce
Carbon" Press Conference of FPG

Discounts fromcar dealer

Trade-inType

Industrial
Development
BureauMinistry of
Economic
Affairs

heavy
light
heavy
light

Environmental
Protection
Administration

Countyand city
government

No subsidy

According to
the principleof localgovernment
announcement

7 , 000
3 , 000

2022 Sustainability Report17Nan Ya Plastics Corporation【Impact of climate transition】

NPC responds to climate transition actions and issues by participating in several important domestic andforeign carbon reduction initiatives, alliances, and media promotions. NPC hopes to encourage society
to jointly enhance the awareness of carbon reduction, create environmental sustainability, and achievecommon prosperity for the community:
1 .International Advocacy
In addition to actively setting the long-term carbon reduction goal of "carbon neutrality by 2050 ", NPC
has also participated in the "Carbon Disclosure Project" questionnaire evaluation, "Task Force on Climaterelated Financial Disclosure (TCFD)", "Science-Based Targets Initiative (SBTi)" commitment to strengtheninternal carbon reduction management operations. NPC follows international trends, introduces andincreases (revises) carbon reduction actions, reviews the implementation regularly, and conducts timely
reviews to ensure progress towards the goal of carbon reduction transformation.

● Started participating in 2017 and received A- (Leadership

Level) in the 2022 climate change evaluation.

● For ﬁve consecutive years, CDP's climate change rating has

maintained the "Leadership level ".

● Signed to support the TCFD by the end of 2021.

● Starting in 2022, the Chinese and English "TCFD Report" of

NPC for the previous year will be published year by year.

● Applied for SBTi in 2022 and submit carbon reduction goals.
● The SBTi application was approved in March 2023. We will

actively follow the goals and implement various carbon
reduction projects.

● SBTi application goals for NPC:①scope 1 + scope 2, setting

the goal of taking 2021 as the base year (6.14 million tonsof CO2e) and reducing carbon by 15% in 2027 (5.22 million
tons of CO2e); ②Scope 3, setting the goal of taking 2021 as
the base year and reducing carbon by 7.4% in 2027.

2 .Marine Debris Recycling Coalition
To maintain the marine ecological environment, NPC has
long-term recycling of marine waste bottles to reduce
the harm to marine ecology. And joined the "Marine
Debris Recycling Coalition," established by the "Ocean
Conservation Administration" in 2022 . NPC cooperates
with other "Marine Debris Recycling Coalition" members tocollect fishing nets and plastic bottles, expand recycling
material sources, and expand production cooperation
within the industry chain to maintain marine ecology andprotect our planet jointly.

18

The Marine Debris Recycling Coalition
was held at the Kung San site of NPC on
2022 annual conference.

About Nan Ya Plastics

The Ocean Conservation Administration held the "Marine Debris Recycling Coalition " conference at
the Kung San site of NPC on December 8 , 2022 . 41
members were invited to participate in the meeting to
exchange opinions on jointly promoting "turning ocean
garbage into gold" and ocean-friendly actions andvisiting NPC's plastic recycling promotion results.
3 .Form alliances between different industries to jointly
build a recycling chain
NPC is well aware that to carry forward the ESG
The photo includes consultant of NPC Sin-Yi
life social. They need to produce only with the joint
Huang and Directors of Ocean Conservation
investment of the industry and the public can we
Administration Ocean Affairs council HSIANGcreate an "ESG life social." In view of this, we actively
WEN, HUANG etc.
participate in cross-industry alliances in the recycling
chain and cooperate with well-known manufacturers at home and abroad so that the good things of" 1 + 1 achieve sustainable and unlimited common good" can continue to happen and let the inﬂuenceof sustainability shine in every corner of society. Critical cases have been carried out so far, as listed
below:● Working with Taiwan's well-known outdoor sports brand "Atunas" and used clothing recyclers, fabricfactories, and designers that share the same mindset to construct the country's ﬁrst circular textile
demonstration supply chain.
● Build a "Bottle to Bottle" PET bottle recycling system in South Central Taiwan and its outlying islands incollaboration with 7-ELEVEN Supermarket to create a sustainable recycling supply chain.
4 .Media Sharing
In addition to the long-term promotion of energy
conservation and carbon reduction in production plants,
NPC has linked the ESG carbon reduction cycle strategy
with operations and products, inviting customers andend consumers to jointly respond to the sustainable
cycle, care for the surrounding living environment, andcreate a sustainable living circle. SAYA brand is basedon the above concept to provide a variety of products
such as "dope dyed PET" and "recycled PET resins", andwill continue to invest in research and development tocontinue to exert sustainable value. The highlights ofexternal sharing activities are as follows:● On July 27, 2022, the "Environmental Protection andSustainable Product Description Press Conference
was held at Kung San site. The Chairman Chia-Chau
Wu personally introduced NPC to promote sustainableproduction. The methods and results of the work wereactively participated and widely reported by the
media.

● The Fiber Division of NPC was invited to hold a meetingat the Ministry of Environment on August 31, 2022. A
press conference with the topics of "Promoting Used
Clothing Recycling and Leading the Sustainability
Trend" showcased physical polyester recycling
technology. Commemorative POLO shirts made fromrecycled silk from NPC were also on display at thevenue.

"

Chairman Chia-Chau Wu of NPC personallyintroduced the Company's practices andachievements in promoting sustainableproducts.

2022 Sustainability Report19Nan Ya Plastics Corporation

Material topics Identiﬁcation andStakeholders Engagement
Material topics identiﬁcation and analysis process
When NPC compiles the sustainability report, members of the "ESG Promotion team" will gather to focus
on the current major stakeholders and the essential issues. Communicate and discuss the relevant topics
and achieve consensus, which will serve as a critical reference for the content disclosed in the report. The
Company's analysis process in 2022 is as follows:

STEP 1
Identiﬁcation stakeholders: 8 types of stakeholders
Refer to the five principles of the AA 1000 Stakeholder Engagement Standard (SES): Dependence,
responsibility, influence, diverse perspectives, and attention. Examine operational business activities
and sustainability to identify eight types of stakeholders.

STEP 2
Collection of issues that impact the Company: 113 impact items
Refer to the GRI Standards, SASB, TCFD, Sustainable Development Best Practice Principles for TWSE/TPEx
Listed Companies, ISO 26000 : Guidance on social responsibility, international evaluation of industry
issues, United Nations SDGs, domestic and foreign industry issues, global trend issues and media reports,
etc. 113 impact projects were sorted out to identify impact items and the positive or negative impacts
on enterprises.

STEP 3Integrating company impact issues into sustainability issues:
26 sustainability issues
After the consulting team gave integration suggestions, the impact issues were integrated into
sustainable matters according to the theme. After discussion with the core members of the ESG
promotion team and external consultants, they were consolidated into 26 sustainability issues for
subsequent identiﬁcation.

STEP 4
Analysis and ranking of material topics: 591 questionnaire
responses
The functional groups of the President's Ofﬁce, Accounting Department, Safety and Health Department,
various business ofﬁces, Mailiao Management Department, Kaohsiung Management Department, andother departments will assist in issuing electronic questionnaires. Then, based on the "degree of concernof stakeholders" and "degree of impact on the Company's operations," high, medium, and low-intensity
analysis is conducted to identify its importance. In 2022 , 557 valid questionnaires from stakeholders and34 valid questionnaires from company executives were collected.

20

About Nan Ya Plastics

STEP 5
Issue impact assessment and discussion: 14 material topics
Utilize the spirit of GRI 3 , materiality analysis to measure the financial impact and likelihood of
occurrence of high and medium issues. Compare material topics with the GRI standards to identify 14
material topics.

STEP 6Disclosure and reporting of material topics
After the Company's evaluation, this report revealed 14 material topics and formulated a policy for
managing the issues. In the future, we will continue to review the importance of various sustainability
issues, respond to stakeholders' expectations, and ensure that the content disclosed in the report istransparent, reasonable, and balanced.

Material topic matrix and ranking

Level of Impact on the Company's Operation

12

Major matrix scope of the report

10

Promotion of circular economy

Public safety in factory
EnergyIntegrity Corporate
managemenmanagement
Corporate Governance
Policies and regulations
Occupational healthand safety
Operating ﬁnancial performance
Greenhouse gas management

0.8

Climate change mitigation and adaptation
Chemical safety management

0.6

Product innovation researchand development
Human rights protection

0.4

Air pollution management
Employee beneﬁts
and salary

Application of AI and technologies

Water Waste management
resources
management

Information security

Green investments
Community engagement and social welfare

0.2

Diversity and equal opportunity of employees
Career development
and education training
Sustainable supply chain
Biodiversity
management
Tax management0

Level of Concern to Stakeholders

5Management policy
issues that are highly
material

Economic issues
Integrity Corporate
Management,Policies andregulations, Operating
ﬁnancial performance,
Corporate Governance

9

Management policy
issues that aremoderately material

Environmental issues
Air pollution management,Water
resources management,Greenhousegas managementClimate change
mitigation and adaptationPromotion of
circular economyEnergy management

Social issues
Public safety infactory,Occupational
Health and
Safety,Employee
Beneﬁts and Salary2022 Sustainability Report21Nan Ya Plastics Corporation

Issue

Materiality in
2022

Reasons for change

Corresponding
page number

Low

NPC executives and stakeholders
continue to be concerned about
the Company's operating andﬁnancial performance.

42

Moderate

NPC actively invests in resource
recycling and green products
and strengthens the promotion of
circular economy issues.

100

High

Low

NPC executives and stakeholders
continue to be concerned
about the purchase and use ofrenewable energy.

85

Moderate

High

Moderate

Materiality in
2021

Operating ﬁnancial
performanceHigh
Promotion of
circular economy

Energymanagement

Air pollution
management

Adjustment

89
NPC executives focus on thegroup's carbon neutrality goals
and carbon reduction actions,and their attention has declined
slightly compared with previous
years.

Low

Moderate

121

Chemical safety
management

In the spirit of improvement, we will appropriately disclose the content of issues of concern in this report.
We will continue communicating with stakeholders in the future, list deficiencies as critical points for
improvement, and strive to maintain good interactions with stakeholders.

22About Nan Ya Plastics

Material topics and value chainsR&D and
Improvement

After-Sale Service &Consultations

R&D and evaluate
project▶

▶

Visit customer

Formulate mass production criteria and quality
standards

Satisfaction survey▶

▶

Feedback and improvement

Research and testing &Quality confirmation

Impact on the entity▶

Employee, Customers

Patent Application
Impact on the entity
Employee, Customers,
Industry/academic

Product Sales

Our
Business Model

Order confirmation▶

Raw Material
Procurement

Manufacturing▶

Purchase requirement▶

Product delivery

Price negotiation

Employee, Customers,
Transportation
Contractor

Purchase orde▶

Impact on the entity▶

Inspection of incoming
merchandise &payment

Manufacturing and
Production

Impact on the entity
Employee, Supplier

Materials preparation andproduction scheduling▶

Production▶

Quality inspection▶

Inventory
Impact on the entity
Employee, Supplier,
Residents, Government

2022 Sustainability Report23Nan Ya Plastics Corporation

SDGs

Financial Impact

Items
Goal

High
Greaterthan 10billionModerate tohigh
1 billion~ 10billion

Crucial Topics

GRI Standards

Integrity Corporate
Management

GRI 205 : Anti-corruption
GRI 206 : Anticompetitive behavior

Policies andregulations

GRI 2 - 27 Compliancewith laws andregulations

Operating ﬁnancial
performanceGRI 201 Economic
Performance

Corporate
governance*

Industry issue

Air pollution
management

GRI 305 Emissions✓

13 . 3

Climate change
mitigation andadaptation

GRI 305 Emissions✓

6.3

Water resourcesmanagement

GRI 303 Water andEfﬂuents

Waste
management

GRI 306 Waste

6.5

Promotion of
circular economy*

Industry issue

13 . 3

Energymanagement

GRI 302 Energy

Public safety infactory*

Industry issue

Occupational
health and safety

GRI 403 Occupational
health and safety

Employee beneﬁts
and salary

GRI 202 Market
Presence
GRI 401 Employment

Sub-Goal-Coreconnection
12 . 4
3.9

12 . 5
3.9

Subconnection

Moderate
100 million~ 1 billion

✓

8.8

8.5

Note: (1) Sustainability issues marked with "*" represent issues that are important to the Company but do not correspond to the GRI Standards.
(2) Level of involvement:
Cause(●): Describe the impact caused by the organization through its own activities
Contribute to(○) : Describe the impact to another entity that caused, contributed or induced by the organization through its own activities
Directly linked to(✓): An organization that has not caused or contributed to a negative impact may have had a negative impact
through its business relationships (operations activities, products or services)24

About Nan Ya Plastics

Impact and Business Relationships(cause/contribute to/directly link to)

Financial Impact
Low toLow
moderate
Less than
10 million
10 million~ 100 million

R&D and
Improvement

Raw
Material
Procurement

Manufacturing
andProduction

Product
Sales

After-Sale
Service &Consultations

✓

●

✓

●

●

✓

✓

●

✓

●

●

✓

✓

●

●

●

●

✓

●

✓

●

●

●

✓

●

●

✓

●

✓

●

✓

✓
●

1.2.2

✓

Employees,
Suppliers, Residents,
Government,
Customers,
Insutry/academic,
Transportation
Contractor

✓

1.2.1
1.1

3.3

3.2

3.4

Employees,
Suppliers, Residents,
Government,
Customers, Insutry/
academic

●

●

3.5.1

3.5.2
Employees, Suppliers,
Residents,Government,
Customers, Insutry/
academic,
Transportation
Contractor●✓

Corresponding
Chapter

1.1.3

●

●

✓

✓

✓

●

✓

●

Impact on Entity

●

●

✓

●

●

✓

●

●

3.2.3

4.3

✓

Employees,
Suppliers, Residents,
Government,
Customers, Insutry/
academic,
Transportation
Contractor

4.3

4.2.2

2022 Sustainability Report25Nan Ya Plastics Corporation

Material topics Identiﬁcation and Stakeholders Engagement"ESG Promotion team" refers to the ﬁve major principles of the AA 1000 Stakeholder Engagement Standard(SES) announced in 2015 : dependency, concern level, inﬂuence, responsibility, and diverse perspectives.
Upon conﬁrmation from the organizer, eight critical stakeholders to the Company's sustainable development
have been identiﬁed to communicate with them and respond to their needs and expectations. Throughstakeholder engagement, the Company's responsibility to stakeholders is enhanced, and the internalsustainability strategy is strengthened.

Dependency

Residents inthe operating
Areas

Government

Concernlevel

Experts andScholars

Inﬂuence

EnvironmentalgroupsResponsibility

Shareholders
and Investors

Customers

Diverseperspectives

Suppliers andContractors

Employees

Communications with Stakeholder
Stakeholders

Residents in
the Operating
Areas

26

Signiﬁcance to
NPC

Frequency and Methodsof Communication

Creating co【Regularly - monthly】
prosperity with
Special visits
the community【Occasionally】
has been a
1 . Meetings - village
long-term
meetings, factorycommitment toconstruction
the Company's(expansion) brieﬁngs,
operations.
symposiums,
Caring for
observation tours,
residents
conferences, etc.
around the
2 . Email/Telephone
plant areas andsociety is theContact Person
factor that will
Taipei Administration
be consideredwhile setting our
Department Mr. Hsu
annual strategic
TEL:( 03 ) 328 - 4191 # 182
goals.

Material
TopicsStakeholder Communication Performance in
2022

Integrity
corporate
management,

In 2022 , 601 people participated inenvironmental volunteer activities ( 965
volunteer service hours), and 390 people
participated in charity service activities ( 1 , 558
volunteer service hours).

occupational
health andsafety,waste
management,
operatingﬁnancial
performance,water
resources
management

About Nan Ya Plastics

Stakeholders

Signiﬁcance to
NPC

Frequency and Methodsof Communication

Government【Regularly - monthly】
Agencies
1 .Meetings (e.g., public
formulatehearings, seminars, etc.)
relevant
2 .Ofﬁcial documents
policies,
3 .Special Visits
therefore,
4 .Email/Telephone
besides
complyingContact Personwith relevant（1）President Ofﬁce Mr.
regulations,
Chang (Operating
we alsoanalysis team)communicate
TEL:( 02 ) 2712 - 2211
with the# 5641government to（2）Safety & Healthpromote theDepartment Mr.
sustainable
Chang & Ms. Choudevelopment of
TEL:( 02 ) 2712 - 2211
the industry# 5627 , 5653

Material
TopicsStakeholder Communication Performance in
2022

Policies andregulations,

1 . Selected to be part of the "Taiwan ESG index"
for 3 consecutive years.
2 . Selected to be part of "FTSE TWSE Taiwan 50
Index", "TWSE CG 100 Index","TWSE HC 100
Index."
3 . Selected to be part of the "Taiwan
Environmental Friendly 50 Index."
4 . Awarded the " 2022 Award for the excellent
trading business" of the Ministry of Economic
Affairs.
5 . Awarded " 2022 National Enterprise
Environmental Protection Award ExcellenceAward" by the Ministry of Environment (NanYa ICE COOL insulation ﬁlms).
6 . The BPA plant was awarded "Excellent
Department of Occupational Safety and
Health " by the Yunlin County Government.
7 . The PA plant was awarded the " 2022 Energy
Conservation Benchmark Award" by the
Bureau of Energy, Ministry of Economic Affairs(Group A Silver Award).
8 . The Ministry of Economic Affairs awarded Chiayi
plant I, plant II, and EG plant II " 2022 Excellent
industrial greenhouse gas reduction factory."
9 . SMC ﬁreproof entrance door set andﬁreﬁghting underground pipe uses HDPE pipes
and coiled iron core molded transformers
were awarded the " 2022 Taiwan ExcellenceAward" by the Ministry of Economic Affairs.
10 . Cooperate with the Industrial Development
Bureau of the Ministry of Economic Affairs
to conduct the general inspection of theMailiao Industrial Complex.
11 . Cooperate with the Yunlin County
Government to organize the FPG Air
Pollution Reduction and Environmental
Sustainability Forum and the FPG Circular
Economy Forum.
12 . Contact the Industrial Bureau of the Ministryof Economic Affairs to review the feasible
planning plan for the national circular
economy promotion map.

energymanagement,
public safety
in factory,
integrity
corporate
management,
greenhousegasmanagement

Government

Experts andScholars

We value the【Regularly - monthly】
suggestions
1 . Meetings (such asof academic
EIA review meetingtheory on
for new (expansion)sustainability
construction andissues. We are
the EIA conclusion
looking forward
implementation
to applying
supervisory meeting)the theory
2 . Email/Telephone
to enhance
Taiwan's
Contact Person
industrial
competitiveness （1）Resource Recycling
andDepartment Mr. Li
environmental
TEL:( 05 ) 681 - 8223
sustainability（2）Safety and Healthefforts jointly.
Department Mr.
Chen, Mr.Tan
TEL：（02）2712 - 2211
# 5653Integrity
corporate
management,
energymanagement,
occupational
health andsafety1 . Participate in the "Consultation Meeting on
Carbon Reduction Promotion Plans for KeyPetrochemical Industry Players" organizedby the Taiwan Green Productivity
Foundation.
2 . Participate in the "Supervisory Committee
for the Implementation of Environmental
Impact Assessment Review Conclusions of
Mailiao Industrial Complex" every quarter(the committee members are composedof experts and scholars).
3 . Participate in the "Brieﬁng session fordrafting Regulations on the Water
Conservation Charge" organized by the
Chinese National Federation of Industries.

2022 Sustainability Report27Nan Ya Plastics Corporation

Stakeholders

Environmental
GroupsShareholders/Investors

Signiﬁcance to
NPC

Frequency and Methodsof Communication

Besides【Regularly - monthly】
attaching
1 . Meetings (such asimportanceEIA review meetingto academic
for new (expansion)
theories on
construction andsustainability
the EIA conclusion
issues, we also
implementation
attach the same
supervisory meeting)importance to
2 . Email/Telephone
environmental
sustainability
Contact Person
issues just like（1）Resource Recycling
environmentalgroups. We
Department Mr. Li
aspire to apply
TEL:( 05 ) 681 - 8223
such theories（2）Safety and Healthto practice toDepartment Mr.
collectively
Chen, Mr.Tan
enhance
Taiwan's
TEL：（02）2712 - 2211
industrial# 5653competitivenessandenvironmental
sustainability.
Shareholders
and investors
are owners of
the Company,
and nonﬁnancial
information
disclosure
has gradually
become afactor forinvestors inscreening
investment
targets.

【Annually】Shareholders'Meeting【Quarterly】Board of
Directors Meetings【Occasionally】
1 .Market Observation Post
System (MOPS)
2 . "Investor Section" of theCompany's website
3 . Investor Conference
4 . Email/Telephone
Contact Person
President Ofﬁce Ms. Tsai(Operating Analysis Team)

Material
TopicsStakeholder Communication Performance in
2022

Integrity
corporate
management,
public safety
in factory,
occupational
health andsafety

NPC donated "Wilderness No. 2 " to the THE
SOCIETY OF WILDERNESS to jointly promote
environmental education and ecologicalrestoration work.

Operatingﬁnancial
performance,
Climatechangemitigation andadaptation,
public safety
in factory,Integrity
corporate
management,
Corporate
governance

1 . A total of 68 signiﬁcant messages werereleased.

Integrity
corporate
management,
occupational
health andsafety, waste
management,
air pollution
management

NPC achieved cusomer satisfaction score of
4 . 3 , accounting for 86 % of the total score in
2022 .

2 . Invited to attend 4 times of Investor
Conference.
3 . In response to the ESG communicationneeds of domestic and foreign investment
institutions. NPC implemented 8 projects,
including climate change questionnaires,
ESG issue responses, and communication
meetings.

TEL:( 02 ) 2712 - 2211 # 5612
Earning thecustomers'
support is thecompany'svalue, andcustomerfeedback is thedriving force forour progress.
Customers【Annually】Dealer
Meetings【Occasionally】
1 .Product Exhibitions
2 .Special Visits
3 .Customer satisfaction
survey, customer
complaint form
4 .Customer Complaints
5 .Email/Telephone
Contact Person
General manager's ofﬁce
Mr. Liu (Management
Team II)
TEL:( 02 ) 2712 - 2211 # 5626

28

About Nan Ya Plastics

Stakeholders

Suppliers andContractors

Signiﬁcance to
NPC

Frequency and Methodsof Communication

Collaboration【Annually】Supplierand support ofBrieﬁng
partners are the 【24 Hours】Customer
critical factors in Service of Formosathe company's
Technology E-market
pursuit ofPlace
success and【Occasionally】
sustainable
1 . Supplier/Contractor
development.
Grievance Channels
2 . Email/ Telephone
3 . Contractor Mediation
Meeting

Material
TopicsStakeholder Communication Performance in
2022

Integrity
corporate
management,

1 . A total of 3 , 368 manufacturers in the supply
chain have signed the "Corporate Social
Responsibility Commitment Letter".

air pollution
management,

2 . A total of 3 , 215 manufacturers in the
supply chain have ﬁlled out the "Social
Responsibility Commitment Questionnaire"

occupational
health andsafety,operatingﬁnancial
performance

Contact Person
General manager's ofﬁce
Mr. Wei (Management
Team I)
TEL:( 02 ) 2712 - 2211 # 5621

Employees

Employees
are thefoundation of
the company instrengthening its
competitiveness.
By providing
sound educationand training
and a friendly
workplaceenvironment,
the Company
can enhancethe employees'
cohesion, thus
creating a goodfoundation forsustainable
management.

【Annually】
Employee Satisfaction
Survey【Quarterly】
Occupational Safety
and Health Committee
Meetings【Every 2 months】"FPG" Bimonthly Magazine【Daily】Morning Meetings【24 Hours】
1 . Set Up Online/Ofﬂine
Suggestion Boxes(Notes, Outlook)
2 . Factory " 799 " hotline【Occasionally】
1 . Direct communications
between senior
executives and union
representatives
2 . Labor Union (LaborManagement
Meetings), Welfare
Committees, etc.
3 . Management system
feedback form

Integrity
corporate
management,
promotionof circular
economy,1 . Published 6 bimonthly of "Formosa Plastics
Group" magazine.
2 . Issue e-newsletters monthly.

occupational
health andsafety,air pollution
management,
employee
beneﬁts andsalaryContact Person
General manager's office
Mr. Pai (Human Resources)
TEL:(02)2712-2211 #5648

2022 Sustainability Report29Nan Ya Plastics Corporation

1

chapter

19
30

Ongoing
Sustainable
Governance
Strategy

1.1 Remarkable Corporate
Governance33

1.2 Improve Business Performance42

1.3 Essential Risk Management44

1.4 Issues of Special Concern

48

Ongoing
Sustainable
Governance
Strategy

1

Product
Value
Expansion

Green
Environment
Management
Promotion

Creating a
Happy
and Safe
Workplace

The Pursuit of
Co-Prosperity
and a Better
HomelandAppendix

NPC complies with legal regulations, adheres to the principle of ethical standards, and continues to strengthen corporate
governance and risk control mechanisms, as well as enhance the ethical business awareness of all employees. The Company
aims to become the most trusted corporation with the business philosophies of "diligence, perseverance, frugality andtrustworthiness" and "to aim at the sovereign good".
United Nations Sustainable
Development Goals (SDGs)

Strategies●

Corporate
Governance,Integrity
Corporate
Management, Policies
and Regulations,Operating Financial
Performance

Sustainable development - Continue to expand business, promote
development strategies such as high-value products, and green
transformation.
● Integrity management - Improve corporate governance and protect
shareholders' rights and interests.
● Operational risk management - Control operational risks and develop
risk response strategies.
2022 goals

Material Topics

2022 Implementations（Did not meet the goals ; Goals
met; ★ Exceeded expectations）

Medium andLong-term Goals（2024 - 2030）

Short-term Goals（2023 Goals）

Sustainable Development●

Promote the expansion ofdomestic leukoreduction
blood bags and otherconstruction plans.

●

Carry out investment incooper plant and BPA plantin China.

●

Investment in "Formosa Smart
Energy Tech Corp."●

Set up a "Sustainable
Development Committee"
under the Board of Directors.

The expansion of domestic
leukoreduction blood bags plant is inprogress.
Expansion of cooper plant and BPA
plant in China is in progress.
 I
n 2022, the Board of Directors approved
the investment in " Formosa Smart
Energy Tech Corp."
 S
et up a "Sustainable Development
Committee" under the Board of Directors
in June 2022.

●

Continue to promote
the expansion ofdomestic leukoreduction
blood bags and otherconstruction plans.

●Continue to promote theexpansion of cooper plantand BPA plant in China.

●

The "Sustainable
Development Committee"
is held at least once a year.

●

Continues to improvethe competitivenessof existing products.
In addition, NPC
develops highvalue, differentiatedproducts and seeks
new investment
and development
opportunities toensure the Company's
sustainable
development.

●

Ensure that all
operations of theCompany comply withlegal requirements,
continue tostrengthen corporate
governance, anddisclose importantcompany information
promptly to protect
the rights and interestsof shareholders.

●

The Company shallpromptly identify
internal and externalrisks and draft
responsive measurespolicies to mediate thehazard of troubles andstrengthen operational
ﬂexibility.

Integrity Corporate Management●

Conduct "Self-Evaluationof the Board of Directors
regularly every year.

●

Participation in 4 or moreinvestor conferences at least
once per quarter.

●

Announce company
information in both Chineseand English.

●"Self-Evaluation of the Board of Directors"
has been conducted in 2022.
Participated 4 investor conferences in
2022.
 I
n 2022, 46 material messages wereannounced in Chinese and English.
Completed 52 audits based on the "2022
Audit Plan", and all abnormalities foundhave been improved.

Continuously improve various
2
022 earnings per share reached NT $internal control systems in line
4.05
with legal and practical needs.
No major violations occurred in 2022.
● Offer stable return on equity
for shareholders.
●No major violations (withpenalties exceeding NT$ 1
million).

●Conduct "Self-Evaluationof the Board of Directors
regularly every year.

●

Participation in 4 or moreinvestor conferences atleast once per quarter.

●

Announce company
information in both
Chinese and English.

●

Continuously improvevarious internal control
systems in line with legal
and practical needs.

●

Offer stable return on
equity for shareholders.

●No major violations (withpenalties exceeding NT$ 1
million).

Implement Operational Risk Management●

Identify risk events anddraft responsive measuresaccordingly.

●

Set up an "Information
Security Committee" tostrengthen information
security management.

A total of 21 risk events including climatechange have been identiﬁed in 2022,
and response measures have beendrafted accordingly.
 T
he implementation status of "riskmanagement" has been reported to theBoard of Directors in June 2022.
 S
et up an "Information Security
Committee" and a Chief Information
Security Ofﬁcer (Assistant Vice Presidentof President's Ofﬁce) to strengthen
information security management in 2022.

●

Identify risk events anddraft responsive measuresaccordingly.

●

Report theimplementation status of"risk management" to theBoard of Directors at least
once a year.

2022 Sustainability Report31Nan Ya Plastics Corporation

Material Topics

Operating Financial
Performance

Corresponding
GRI standards

201 Economic
Performance

SASB indicator
comparison－

Management action
19
32

Policies and Regulations

205 Anti-corruption,
206 Anti-competitive Behavior

2 - 27 Compliance with laws andregulations－

Compliance with laws andregulations[Impact]
1 . Investing in high-end
material applications is
expected to increase
revenue.
2 . Rising raw material
market costs affect theCompany's stock priceperformance.

[Impact]
1 . A diversiﬁed, professional,
and transparent Boardof Directors can improve
operational effectiveness.
2 . The role of the Board of
Directors is not separated,which may affect thequality of governance.
The difference in salary
between management
and employees is widening,which may lead toconfrontation.

[Impact]
1 . A diversiﬁed,
professional,transparent
Board of Directors
can improve
operational
effectiveness.
2 . The Board of
Directors lacks
accountability
andmanagement
effectiveness,increasing
operational andreputational risks.

[Impact]
1 . Companies can proactively andpublicly disclose codes of conduct
and penalties, which can improvebusiness credibility.
2 . Failure to respond to or disclose
ESG information such as climatechange requested by internationalor domestic executive institute may
result in penalties and reputationalrisks.

The Company iscommitted to mitigating
operational risks, seizing
potential market
opportunities, andcreating stable proﬁts
for shareholders throughemerging technologies
such as AI and productdifferentiation innovation.

The Company considers ethical business
management the highest guiding principle
for all business activities and continues
strengthening its corporate governance. NPC
enhance employees' awareness of "anticorruption, malpractice prevention, and strict
discipline" through three major aspects of"setting of institution and norm", "self-discipline
document signing," and "educational training
implementation," and have computerized
the management of various operations anduses technology to achieve management
purposes. Lastly, the Company implements
audit operations to eliminate fraud and reduce
relevant risks.

Compliance with regulations
and standards is the Company's
most fundamental principle, and
it is also the foundation of theCompany's philosophy of "to aim
at the absolute perfection andperpetual business operation." NPC
will strictly abide by the local laws
and regulations of each operation
and use this as the foundation to
improve each business and reduce
the occurrence of external risks.

●

Promote productdifferentiation.
● Promote AI applications
and strengthen
the Company's
competitiveness.
● Actively explore themarket and make earlyarrangements.

●

Standards and regulations: An internal
real-time query channel for regulations
such as "Principles of Ethical Corporate
Management", the "Principles of Corporate
Social Responsibility", the "Principles ofCorporate Governance", and the "Personnel
Management Rules." "● Grievance mechanism: Internal and externalreporting channels have been speciﬁedin the "Employee Grievance Procedures"and the "Rules for Encouraging Reporting ofUnlawful Unethical Behavior."● Internal control: The management of various
operations has been computerized. Eachdepartment conducts independent businessinspections regularly, and the independent
audit department also performs inspections
from time to time.

●

●

●

●

Prevention
andmitigation
actionActionplan

Integrity
Corporate
Management－

Impactdescription

Policies andcommitment

Corporate GovernanceContinue to promote
the expansionof domestic
leukoreduction bloodbags plant and invest incooper plant in China.
● Promote AI applications
and strengthen
the Company's
competitiveness.
● Promote researchand development
projects such as "antiburning materials
for lithium battery "and "ﬁlm materials
for optoelectronic
semiconductors."

Reveal essential rules and regulations suchas the " "Principles of Ethical Corporate
Management " on the ofﬁcial website of NPC.
● Provide internal and external grievancechannels and clearly deﬁne whistleblower
protection provisions.
● Timely review and add (revise) the internal
control system in compliance with laws andregulations.
● Based on the annual risk assessment results,
we formulate an audit plan, implement theinspection, and strengthen the computer
control mechanism for abnormal events.

Regular monitoring of legal andpolicy compliance.
● Regularly conduct audit
operations to avoid legal
violations.
● Training related to legal
compliance.

The functional groups(departments) of the President's
Ofﬁce will review the legality ofeach operation on time. If there
are any changes or adjustments
to regulations, internal regulations
will be immediately revised.
● Based on the risk assessment
results every year, we formulate
an audit plan implement theinspection, and strengthen thecomputer control mechanism forabnormal events● In accordance with ISO 14001 ,ISO 45001 , and other regulations,conduct education and training
for relevant colleagues andconduct internal audit operations

Ongoing
Sustainable
Governance
Strategy1Creating a
Happy
and Safe
Workplace

The Pursuit of
Co-Prosperity
and a Better
HomelandAppendix●●

No corruption incidents occurred in
2022 .
● Ranked in the top 6 %~ 20 % of
the 928 rated listed companies in
the 9 th Corporate Governance
Assessment in 2022 .

●Shareholders

Shareholders, customers, supply
chain, government

Shareholders, customers, supply
chain, government

NPC releases 46 signiﬁcant messagesin Chinese and English in 2022 .

The Company announces legal
compliance information on theMarket Observation Post System.

Earnings per share is
NT$ 4 . 05 in 2022 .
● Continue to invest in
AI applications in 2022
Performancetracking

Stakeholders
Engagement

Green
Environment
Management
Promotion

Product
Value
Expansion

NPC was invited toparticipate in 4 times
corporate brieﬁng
sessions in 2022 .

All factories have passed
veriﬁcation of ISO 9001 , ISO
14001 , ISO 45001 .
● The audit ofﬁce's 2022 audit plan
has been completed, no major
abnormalities have been found,and all abnormal items havebeen improved.

1.1 Remarkable Corporate Governance1.1.1 Organizational structure

The Company's organizational structure has a clear division between rights and responsibilities. To ensure
the independence of the Company's operations, the current Chairman does
not concurrently serve in a managerial position at the Company. In addition,
the Company is divided into 10 business divisions according to their respective
business product categories, and indirect departments are also set up basedon different functional attributes. All business divisions and indirect departments
are under the General Manager's jurisdiction. Please refer to NPC's website on"Company Organization" for the organizational chart.
On the other hand, the Company adopts the PDCA (Plan-Do-Check-Action)
process to review policy formulation and vision commitments. In addition, NPC
considers feedback suggestions from stakeholders to improve its corporate
governance and enhance operational resilience.

"Company Organization"
on NPC's website.

NPC Responsible Business Conduct Implementation Process●

Plan

The Company's Board of Directors is the highest governance unit for anti-corruption andother responsible business conduct. In addition to the "Audit Committee," "Remuneration
Committee," and other functional committees, the "Sustainable Development Committee"
was established in June 2022 . These committees will assist the Board of Directors in managing
the Company's ESG sustainable businesses.
● The Board of Directors establishes an independent audit office to perform internal audit
operations.
●Do

The Company has formulated 20 important standards and rules including "Principles ofCorporate Governance" and "Principles of Ethical Corporate Management". In addition,
managers will submit them to the Board of Directors for approval as a guideline for
implementing responsible business conduct.
● Promote the computerization of various operations and set exception management
indicators to reduce the occurrence of personnel errors.
●

Check

Set abnormal management indicators for each computer operation to reduce theoccurrence of personnel errors.
● The audit ofﬁce formulated an audit plan based on risk assessment every year and executes
the audit according to the plan.

●

ActionProvide internal and external stakeholders with a reporting channel, add or revise computer
abnormal control standards, or provide project guidance for reasonable feedback matters.
● Implement improvement measures yearly based on abnormal matters checked by the audit
ofﬁce.

2022 Sustainability Report33Nan Ya Plastics Corporation

1.1.2 Board of Directors
Board of Directors Operations
The Board of Directors is the highest governance unit and the center for making business decisions of the
NPC. The shareholders entrust the Board of directors. In addition to complying with the conclusion of theshareholders' meeting, the Board of Directors also abides by relevant regulations such as the "Company
Act", "Securities and Exchange Act", "Company policy," and "rules of procedure for the Board of Directors". It
also has the "Code of Ethical Conduct for Directors and Managers," requiring relevant personnel to adhereto ethical standards when performing their duties and prevent behaviors that harm the Company's andshareholders' interests.
The election of the Company's directors is based on the nomination of candidates system. The shareholders
will select from the list upon resolution from the Board of Directors. All those serve a three-year term andorganize board meetings at least once every quarter. Currently, the Board of Directors has 15 directors, ofwhich 3 are independent and 2 are female. Please refer to the Company's website and the Annual Reportfor details on the list of directors and their respective educational and work experiences.

The role of NPC's Board of Directors
The purpose of the Board of
Directors

The vision of Sustainable
Development

Approve important regulations,formulate management norms,
supervise the Company to implement
ethical business management,
strengthen the promotion of various
ESG businesses, and control potential
risks to create the maximum value forthe enterprise.

Implement corporate governance,
strengthen the Company's
sustainable information disclosure,keep in line with international trends,
and fulfill the obligations of social
citizens to achieve the vision ofsustainable development.

ESG strategies and policies
Understand the critical concerns ofstakeholders, grasp the changes ininternational ESG trends, and lead theCompany to formulate ESG policies.
In addition, promote departments toimplement project actions and thenreview and optimize them regularly.

The composition of the Board of Directors
Number of directors(including independent
directors)

15 Directors

Independent
directors

3
Percentage 20％
Seats

Female directors

2
Percentage 13％
Seats

Meetings
convened in
2022

7 times

Directors
AttendanceRate in 2022

97 . 14％2022 Major Conclusion of Board of Directors
Category

Content of the Conclusion
1 . Approved 2021 Financial Statements and proﬁt distribution.
2 . Amend the Memorandum and Articles of Association.
3 . Compiled plan of lending funds for each quarter.
4 . Approved the transaction with related parties.
5 . Issued letters of support for invested businesses to loan from banks or negotiate credit lines withﬁnancial institutions.
6 . Agreed to dispose of idle land and buildings to FPC.
7 . Formulated 2021 "Internal Control System Statement" of the Company.

Ordinary
Conclusion

8 . Amended the Company's "Regulations Governing the Acquisition and Disposal of Assets,""Principles of Corporate Governance," "Principles of Corporate Governance," and "Rules ofProcedure for Board of Directors".
9 . Agreed to change the Company's ﬁnancial report certiﬁcation accountant.
10 . Agreed to invest in blood bags and leukocyte reduction ﬁlter equipment at the Shulin site in
New Taipei City.
11 . Agreed to purchase land for building a factory.
12 . Agreed shareholders who hold more than 1 % of the Company's issued shares to propose a listof candidates for directors (including independent directors).
13 . Proposed to the shareholders' meeting to agree to release the non-compete restriction of
directors of the Company.

19
34

Ongoing
Sustainable
Governance
Strategy

1Green
Environment
Management
Promotion

Product
Value
Expansion

Creating a
Happy
and Safe
Workplace

The Pursuit of
Co-Prosperity
and a Better
HomelandAppendix

14 . Agreed to build a solar power generation system and entrust Nan Ya Photonics Incorporation(NYPI) to design and plan it.
15 . Agreed to reinvest in the "Nanya Electronic Materials (Huizhou) Co., Ltd." to meet businessexpansion needs and increase its capital by US$ 210 million.
16 . Agreed to invest in ""Formosa Smart Energy Tech Corp."
17 . Formulate the Company's "Organizational Rules of the Sustainable Development Committee"
and "Internal Major Information Processing Procedures."18 . Nominated the Company's executive directors and chairman of the board.
19 . Set up the record and distribution days for cash dividends in 2021 .
20 . Appointed members of the Remuneration Committee.
21 . Established a sustainable development committee and appoint its members.
22 . Amended the "Internal Control System" and "Internal Audit Implement Rules".
23 . Agreed to donate land to Ming Chi University of Technology.
24 . Set the salary of the current chairman and directors of the Company.
25 . Agreed that the current manager remuneration standards, structure, and assessment system
will continue to be used.
26 . Agreed that the salary increase range for managers should be compared with that of all
employees in 2022 .
27 . Re-appointed the Company's financial manager, accounting manager and internal audit
manager.
28 . Approved to donate Chang Gung University for NT$ 4 , 853 , 307 .
29 . Re-signed the Plant leasing contract with Nan Ya PCB Corp.
30 . Agreed to issue domestic unsecured bonds within a total of NT$ 18 billion from 2021 to 2022 .
31 . Formulated 2023 annual audit plans.

Extraordinary
Conclusion

Formulated 2021 employee compensation.

Note: All agendas of the Board of Directors have been subject to avoidance of interests following regulations.

Diversity of Directors
Diversity Items

Director
AttendanceRate in 2022

GenderChia-Chau Wu

100 %

Male

Wen-Yuan Wong

100 %

Male

Wen-Chiao Wang

86 %

Male

Ruey-Yu Wang

86 %FemaleChih-Kang Wang

100 %

Male

Yi-Fu Lin

100 %

Male

Yun-Peng Chu

100 %

Male

Ming-Jen Tzou

100 %

Male

Shen-Yi Lee

100 %

Male

Zo-Chun Jen

100 %

Male

Kuei-Yung Wang

100 %FemaleFong-Chin Lin

100 %

Male

Cheng-Chung Lee

100 %

Male

Chung-Yueh Shih

100 %

Male

Ching-Cheng Chang

86 %

Male

Name

Concurrent
Employment

Age
55 - 64

65 - 74

Above 75

✓

✓

✓

✓
✓

✓

✓

✓

✓

✓

✓

✓

✓

✓
✓
✓

✓

✓
✓

✓

✓

Note: For industrial experience and professional ability of each director please refer to "Board of Directors" on NPC's website andAnnual Report.

2022 Sustainability Report35Nan Ya Plastics Corporation

Remuneration for Directors and Managers
The current remuneration standard and structure of directors and managers of the Company is not only
assessed and approved by the Remuneration Committee but also reported to the Board of Directors forapproval. Managers' performance is evaluated by the Chairman based on the overall performance within
the scope of the manager's responsibility and the achievement status of personal "Annual Work Goals"
to ensure managers understand and co-achieve the Company's strategic goal. It is also an incentive
system that connects the manager's performance with the Company's overall performance. The Directors'
remuneration in 2022 was NT$ 27 , 749 , 000 , accounting for 0 . 09 %.

Remuneration Policy for Directors and Managers of NPC
ObjectPerformance Review

Director(Including independent
directors)

According to Article 16 of the Memorandum and Articles of Association, the Board of
Directors is authorized to decide based on the director's degree of participation in the
Company's operations, the value of his contribution, and the level generally paid by peers.
The Company's managers' remuneration and performance evaluation indicators are as
follows:
1 . Financial indicators: Including operating profit and loss/EBITDA, operating target
achievement rate, revenue growth rate, and proﬁt contribution.

Manager(President, Vice President
and other managers)

2 . Non-ﬁnancial indicators: Divided into three aspects: environmental protection (E), social
responsibility (S), and corporate governance (G). Environmental protection indicators
include participation in environmental sustainability, water, and energy saving
performance, circular economic beneﬁts, and reduction carbon target achievement
rate. Social responsibility indicators include industrial safety/occupational disaster
incidents, product research, development, innovation, and neighborliness. Corporate
governance indicators include operational management capabilities, AI promotion
cases/efﬁciencies, and the number of fraud cases.

ObjectDistribution Items

Director(Including independent
directors)

1 . The Chairman's remuneration includes a ﬁxed monthly salary, bonuses, and incentives
paid based on the Company's performance in the previous year. It is planned to be
no more than two times the remuneration of the Company's President and is provided
monthly following the Company's "Retirement Regulations." Allocate pensions, welfare
funds, and severance pay upon retirement, and pay travel expenses based on actual
attendance at the Board of Directors.
2 . All independent directors and directors including Shen-Yi Lee and Ching-Cheng Chang
receive ﬁxed monthly remuneration and travel expenses based on their attendance on
the Board of Directors.
3 . The remaining directors only receive travel expenses based on their actual attendanceat the Board of Directors, and no remuneration is paid.

Manager(President, Vice President
and other managers)●

Fixed monthly salary, diligence bonus, year-end bonus, supervisor bonus, monthly
provision of pension (including new and old pensions), welfare funds, etc. following theCompany's "Retirement Measures."●Pay severance pay, pension, and other remuneration to supervisors under particular
circumstances.

Directors' Training
Every year, NPC provides or assists in arranging continuing studies courses for directors to facilitate thedirectors staying on top of the latest international trends. In 2022 , directors' continuing studies courses
included " 2023 Economic Forecast and Industry Trends", "Innovation of Circular Economy for Creating True
Value," etc. For detailed training information for directors, please refer to pages P. 67 - 69 of the Company's
2022 Annual Report.
Number of directors trained

15

Training rate 100 %19
36

Total training hours

118 hoursOngoing
Sustainable
Governance
Strategy

1Green
Environment
Management
Promotion

Product
Value
Expansion

Creating a
Happy
and Safe
Workplace

The Pursuit of
Co-Prosperity
and a Better
HomelandAppendix

Functional Committees
To strengthen the supervisory function of the Board of Directors, two functional committees, namely the"Audit Committee" and the "Remuneration Committee," have been set up under the Board of Directors. Bothcommittees are composed of independent directors. The Audit Committee met six times in 2022 , and theRemuneration Committee twice. The main functions of the committees and the members' attendance areshown as follows. In addition, to strengthen the Company's ESG sustainable management, a "Sustainable
Development Committee" was added in June 2022 . Its members are composed of the Chairman, thePresident, and all independent directors of NPC. It met once in 2022 to mainly discuss greenhouse gas
emissions and carbon emission management in 2021 .

Major Functions of the Functional Committees
Name of committee

Major function

Audit Committee

1 . Ensure fair presentation of the Company's ﬁnancial statements.
2 . The appointment (or dismissal) of Certiﬁed Public Accountants (CPA), and evaluation of
the CPA's competency, independence, and performance.
3 . The effective implementation of the Company's internal control system.
4 . The Company complies with relevant laws and regulations and controls existing or
potential risks of the Company.

Remuneration
Committee

Evaluate the Company's directors' and managers' compensation policies and systems andmake recommendations to the Board of Directors for decision-making.

Sustainable
Development
Committee

Review the Company's sustainable development policies and management guidelines, andsupervise the Company's promotion of sustainable development business, etc.

Annual totalcompensation ratio(Note 1 )Percentage increase in annual
total compensation ratio(Note 2 )17 times- 49 . 66％

Note1: Annual total compensation ratio = highest-paid individual's annual salary / Median of other employees' annual salaryNote2: Percentage increase in annual total compensation ratio = increase ratio of highest-paid individual's annual salary /increase ratio of median of all employees' annual salary (exclude the highest-paid individual)

2022 Meeting Attendance
Audit Committee

Remuneration Committee

ActualAttendance

Number ofdelegatedattendances

Attendance
Rate

ActualAttendanceChih-Kang
Wang

6

0

100 %

2

0

100 %

Member(Independent
directors)

Yi-Fu Lin

6

0

100 %

2

0

100 %

Member(Independent
directors)

Yun-Peng
Chu

6

0

100 %

2

0

100 %

Title

Name

Organizer(Executive
directors)【Audit Committee】

Number of
Attendancedelegated
Rateattendances

2022 Major Conclusion

1 . Agreed to adopt the quarterly ﬁnancial reports from 2021 to the third quarters of 2022 .
2 . Compiled plan of lending funds for each quarter.
3 . Approved the transaction with related parties.
4 . Issued letter of support for invested business to loan from banks or negotiate credit lines with ﬁnancial institutions.
5 . Agreed to dispose of idle land and buildings to FPC.
6 . Formulated 2021 "Internal Control System Statement" of the Company.
7 . Amended the Company's policy of " Regulations Governing the Acquisition and Disposal of Assets by PublicCompanies. "2022 Sustainability Report37Nan Ya Plastics Corporation

8 . Agreed to change the Company's ﬁnancial report certiﬁcation accountant.
9 . Agreed to purchase land for building a factory.
10 . Proposed to the shareholders' meeting to agree to release the non-compete restriction of directors of theCompany.
11 . Agreed to build a solar power generation system and entrust Nan Ya Photonics Incorporation (NYPI) to design andplan it.
12 . Agreed to reinvest in the "Nanya Electronic Materials (Huizhou) Co., Ltd." to meet the needs of business expansion
and increase its capital by US$ 210 million.
13 . Agreed to invest in "Formosa Smart Energy Tech Corp."
14 . Amended to the "Rules for Election of Directors", "Rules of Procedure for Shareholders' Meetings", and "Principles ofCorporate Governance".
15 . Agreed to donate land to Ming Chi University of Technology.
16 . Re-appointed the Company's ﬁnancial manager, accounting manager and internal audit manager.
17 . Approved to donate Chang Gung University for NT$ 4 , 853 , 307 .
18 . Re-signed the plant leasing contract with Nan Ya PCB Corp.
【Remuneration Committee】
1 . Set the salary of the current Chairman and Directors of the Company.
2 . Agreed that the current manager remuneration standards, structure, and assessment system will continue to be used.
3 . Agreed that the salary increase range for managers should be compared with that of all employees in 2022 .
Note: For matters regarding the communications between independent directors, CPAs, and internal audit ofﬁcer, please refer tothe "Board of Directors" on NPC's website.

2022 Meeting Attendance
Sustainable Development Committee
Title

Name

Organizer (Chairman)

Actual Attendance

Number of delegatedattendances

Attendance Rate

Chia-Chau Wu

1

0

100 %

Member (President)

Ming-Jen Tzou

1

0

100 %

Member (Executive
Independent Director)

Chih-Kang Wang

1

0

100 %

Member (Independent Director)

Yi-Fu Lin

1

0

100 %

Member (Independent Director)

Yun-Peng Chu

1

0

100 %

2022 Major Conclusion
ESG Promotion Organization reported NPC's greenhouse gas emissions and carbon emissions management in 2021 .

1.1.3 Integrity Management and Anti-corruption
NPC has established strict ethics and related standards. Whether at work or in daily life, we must act
responsibly and shoulder the critical responsibility of maintaining high ethical standards, company
reputation, and compliance with laws. Since 2016 , the Board of Directors of NPC has actively revisedthe "Principles of Corporate Governance, "Insider Trading Prevention" and other contents to promote
perfect corporate governance, and has formulated "Employee Grievance Procedures" and the "Rules for
Encouraging Reporting of Unlawful of Unethical" Behavior." NPC provides speciﬁc channels for reporting any
illegal or inappropriate behavior.
On the other hand, NPC has also formulated 22 essential rules and regulations, such as "Principles ofCorporate Governance" and "Principles of Ethical Corporate Management," which are published in NPC the"Investor section" on the ofﬁcial website is disclosed for the convenience of all stakeholders to review andfollow to improve operational resilience.

19
38

Ongoing
Sustainable
Governance
Strategy

1

Product
Value
Expansion

Green
Environment
Management
Promotion

Creating a
Happy
and Safe
Workplace

The Pursuit of
Co-Prosperity
and a Better
HomelandAppendix

2022
The Board of Directors
amended "Memorandum
and Articles of Association,""Insider Trading Prevention,""Regulations Governing
Procedure for Board of Directors
Meetings", and "Principle ofCorporate Governance."

2017
The Company formulated" Procedures for Preventing
Insider Trading" and "Rules
for Encouraging Reporting ofUnlawful of Unethical Behavior."

2016

2021

The Board of Directors amended "Principlesof Ethical Corporate Management" and"Code of Ethical Conduct for Directors &Managers."

1 . The Board of Directors amended "Principles of
Ethical Corporate Management".
2 . Promote "Insider Trading Prevention" and"Integrity Management Education Training."

Professional Ethics
Aspects ofProfessional
EthicsAnti-Corruption

Description

Related external link

Internal regulations expressly stipulate that vendors' invitations "Code of Ethics and Businessa n d g i f t s m u s t b e t u r n e d d o w n . T h o s e w h o e n g a g e i n Conduct" on NPC's website.
malpractices, misappropriation of public funds, bribery, andcommissions shall be dismissed.

Anti-Fraud

Employees who hold positions in operation, procurement, ﬁnishedgoods storage, work supervision and budgeting must be regularly
rotated to avoid misconducts that involve vendors.

Strict Disciplines

Employees who violate these rules will not be given lenient
treatment. Their direct supervisors will also be punishedaccordingly in a public manner to serve as a warning.

Anti-corruption policies and actions
Professional Ethics Framework
Self-discipline document signing• Signing the pledge• Compliance with the"Trade Secrets Act"• "Personal Work Rules
Manual"• "Principles of
Ethical Corporate
Management" of theCompany• "Principles of Corporate
Governance"• "Personnel
Management Rules"• "Self-Discipline Pact"• "Code of EthicalConduct for Directors& Managers"

Formulated
regulations

Self-discipline
document
signing• Anti-corruption• Compliance with the "Labor Standards Act"• Environmental protection• Insider trading• Intellectual property rights protection• Personal data and privacy protection• Gender equality

Types of training

Educationand training• New employee training• On-the-job training• Senior executive training course• Class-based instruction• Online course

2022 Sustainability Report39Nan Ya Plastics Corporation

Antitrust
To ensure the Company's operation comply with regulation set by the local government and reduce therisk of law violation, employees and supervisors at all levels are strictly required to abide by various rules andcode of "Antitrust Law" and timely report to the Board of Directors on their compliance. Meanwhile, regulartraining courses were hold for relevant colleagues. No violation of "Antitrust Law" occurred in 2022 .

Implementation results and education and training
Under the above policies, NPC conducted a corruption risk assessment on all operating locations in 2022 .
The assessment results showed that there are no major corruption risks. In addition, annual educationand training projects on "Integrity Management" and "Insider Trading Prevention" were launched in
2021 to strengthen employees' ethical awareness of honest management and other ethical issues. The
implementation status is as follows:
NPC's education and training implementation status

2021

2022

Education and training item
Integrity management(includes anti-corruption andantitrust law)

6 , 201 people were trained.
Total training hours are 3 , 101 .

11 , 104 people were trained.
Total training hours are 5 , 552 .

Insider trading prevention

6 , 189 people were trained.
Total training hours are 3 , 095 .

11 , 062 people were trained.
Total training hours are 11 , 062 .

Whistleblowing Channels
The Company provides internal whistleblowing channels for reporting illegal activities through the systematic"Employee Grievance Procedure." When the Company and the designated investigators are handlingthe reported incidents, principles of fairness and impartiality shall be upheld during investigations andcase reporting. The whistleblower shall not receive retaliation, and the process shall remain conﬁdential to
avoid potential punishment (see 4 . 2 . 2 Employee Beneﬁts and Care for details on internal communication
channels.)
NPC

Year
Number of Cases

Subsidiaries in Taiwan

2021

2022

2021

2022

Total number of reported cases

0

1

2

1

Number of reported cases related to anti-corruption policy

0

0

0

0

Number of cases that violate anti-corruption policies afterinvestigation

0

0

0

0

Number of completed pieces

0

1

2

1

Note: The scope of assessment and disclosure includes all the business locations in Taiwan.

1.1.4 Internal Control Mechanism

19
40

The Company has established an efficient and complete internal control mechanism. Throughinterconnecting personnel, finance, business, production, supplies, and engineering functions bytechnology, the Company has implemented overall computerization of operational management.
The computer system automatically checks the data and debugs through computer logic. Once anabnormality is found, the relevant personnel are immediately prompted so they can understand andhandle it accordingly. The Company has also established an audit office under the Board of Directors.
Dedicated internal auditors will carry out the auditing tasks based on the annual audit plan and participate
in audit-related courses organized by professional training institutions every year to improve their professional
capabilities continuously.

Ongoing
Sustainable
Governance
Strategy

1

Product
Value
Expansion

Green
Environment
Management
Promotion

Creating a
Happy
and Safe
Workplace

The Pursuit of
Co-Prosperity
and a Better
HomelandAppendix

Internal audit scope and process

Review the existing
system to ensurecompliance with
policies, plans,
procedures,contracts andregulations.

Review thereliability andcompletenessof ﬁnancial andoperational
information.

Review methods
for safeguarding
assets.

Review theoperations or
project plans todetermine whether
the results are
consistent with theestablished goals.

Evaluate the
efﬁciency andeffectivenessof resource
utilization.

Compilation Report
Reported audit report
before the end offollowing month after
completeness
Audit Report
Internal
Audit
Ofﬁcer

Unit being
auditedInternal
Auditor˙Review
˙Check fordeﬁciencies ininternal control
and discuss
improvement
measuresBy mailor email
Audit
Committee

Chairman

Follow-up Report
Report tracking
and improving
status of abnormal
events quarterly

Oral and written report (high-risk project)Internal Mail

Business Division

NPC provides education and training for internal auditors every year to improve the professional quality of
personnel and completely implement the internal audit process. In 2022 , 11 audit abnormalities were found,including 4 in the production and marketing category, 1 in the materials and engineering category, 4 inthe human resources and general affairs category, and 2 in the ﬁnancial category. There were no major
abnormalities and all had been improved.

Internal Auditor Training in 2022
Numbers ofParticipant

Total traininghours

27 people 360 hours

Name of major courses
1 . Pre-employment training seminar for new internal auditors of the Company.
2 . How auditors can become masters of enterprise diagnosis.
3 . Legal compliance audit of corporate social responsibility and sustainability reports

Statistics of Internal Audit of NPC
Items

2021

2022

Number of audit items performed52

52

Number of abnormalities found10

11 (Note)

Abnormality improvement rate

100 %

100 %

Note: In 2022, 11 audit abnormalities were found, including 4 in the production and marketing category, 1 in the materials andengineering category, 4 in the human resources and general affairs category, and 2 in the ﬁnancial category. There wereno major abnormalities and all had been improved.

2022 Sustainability Report41Nan Ya Plastics Corporation

1.2 Improve Business Performance
1.2.1 Economic Performance

Unit: NT$ thousand

Items

2021

2022

Revenues

411 , 670 , 391

355 , 183 , 300

Costs and expenses

307 , 825 , 083

301 , 274 , 899

Income before income taxes

103 , 463 , 955

47 , 550 , 832

Retained Earnings

273 , 458 , 343

247 , 505 , 467

10 . 25

4 . 05

21 . 60 %9 . 35 %1 , 812 , 450

7 , 649 , 368

EPS
Return on Equity (%)
Tax payable (Exclude business tax)
Source: NPC's 2022 consolidated ﬁnancial statement

Analysis of sales situation of major departments in 2022
1.31%
Type of ProductAmount (NT$ thousand)14.95%

12.22%

160 , 662 , 310

Electronic materials

82 , 490 , 961

36.67%

Plastic raw materials

18.01%

45.24%

23.22%

18.82%Fiber products

63 , 956 , 821

Plastic products

43 , 419 , 074

29.56%
Other departments

4 , 654 , 134

Total

355 , 183 , 300

Source: NPC's 2022 consolidated ﬁnancial statements

Analysis of domestic and foreign sales in 2022
Type of Product14.95%
36.67%

18.82%%

29.56%

Amount (NT$ thousand)

China (including Hong Kong)

130 , 280 , 105

Taiwan104 , 979 , 097

Other countries

66 , 833 , 413

USA

53 , 090 , 685

Total
Source: NPC's 2022 consolidated ﬁnancial statements

1942

355 , 183 , 300

Ongoing
Sustainable
Governance
Strategy

1Green
Environment
Management
Promotion

Product
Value
Expansion

Creating a
Happy
and Safe
Workplace

The Pursuit of
Co-Prosperity
and a Better
HomelandAppendix

1.2.2 Legal Compliance
Compliance with regulations and standards is the Company's most fundamental principle, and it is also
the foundation of the Company's philosophy of "to aim at the absolute perfection, and perpetual business
operation." NPC will strictly abide by the local laws and regulations of each operation, and use this as thefoundation to improve each business and reduce the occurrence of external risks

Environmental
Regulations
The Company's production
and sales operations are
conducted under the laws
and regulations. We continue
to develop environmentallyfriendly products that comply
with EU's RoHS, REACH, andother environmental regulations
and either meet Green Building
materials standards or canbe used as Green Energy
applications. The Company
hopes to safeguard the healthand safety of customers
while contributing to thesustainable development of theenvironment.

Product Labeling

Data Protection

Labeling the Company's
product information meets
statutory requirements and therequirements from the Industrial
Development Bureau, MOEA.
The label "Not ﬁt for human andanimal consumption" is marked
on the outer packaging andproduct delivery note ofspecific non-food additives
products.

NPC has established the"Regulations Governing
Personal Information
Management", which requires
all relevant departments to list
personal data management
as a self-inspection item. Only
authorized personnel areallowed to browse employee
or customer information.
Any personnel that wishes
to access such information
due to business needs mustsign the "Application Formfor Personal Informationcollection, processing anduse", while verification has tobe carried out to ensure thatsuch application complies withthe regulations before accessmay be granted. The methodof such access is also strictly
regulated.

Environmental Compliance
There were no major leaks in NPC and its subsidiaries in Taiwan in 2022 , but there were two environmental
ﬁnes. The main reasons are:( 1 ) The coal-ﬁred unit plant was demolished, and the land was not considered an environmental impact
assessment site.
( 2 ) Insufﬁcient education and personnel training resulted in errors in online reporting.

The goal of reducing the number of violations to 50 % or less ( ≦ 1 ) wasn't achieved. After reviewing thereason for the violation, the improvements are as follows:( 1 ) Required units subject to environmental impact assessment to participate in the ecological impact
assessment brieﬁng held by the competent authority, increasing the understanding of regulatory practices.
( 2 ) Make abnormal cases into teaching materials, conduct publicity, and establish a reporting data
checking and improvement mechanism.
Type

NPC

Subsidiaries in Taiwan

2021

2022

2021

2022

Air Pollution

1 case/NT$ 450 , 000

0 cases/NT$ 00 case/NT$ 00 case/NT$ 0

Water Pollution

2 cases/NT$ 40 , 000

0 cases/NT$ 00 case/NT$ 00 case/NT$ 0

Waste Pollution

0 case/NT$ 0

1 case/NT$ 60 , 000

0 case/NT$ 00 case/NT$ 0

Others0 case/NT$ 0

1 case/NT$ 500 , 000

0 case/NT$ 00 case/NT$ 0

Total

3 cases/NT$ 490 , 000

2 cases/NT$ 560 , 000

0 case/NT$ 00 case/NT$ 02022 Sustainability Report43Nan Ya Plastics Corporation

1.3 Essential Risk Management
1.3.1 Risk Management Promotional Organization and
Identiﬁcation Process
NPC set up the "Risk Management Promotional Team" and was proved by the Board of Directors on
December 16 , 2020 to formulate the Company's risk management policies. The Company hopes toenhance the awareness of all employees through these procedures. This will allow the Company to maintainrisk at tolerable levels, ensure the completeness and reasonableness of risk management, and maximize
beneﬁts.

Risk Management Process

Identiﬁcation and
Evaluation

Control andsupervision

According to thedegree of impact
on stakeholders,
it is divided into
environmental,social, andcorporate.The
three aspects ofgovernance are risk
identiﬁcation.

Process andprocedure ofinternal control
is formulated
according to risk
issues and will bemonitored
continuously.

Report andDisclosure
The operating
status of risk
management
will be reported
to the Board of
Directors at least
once a year andthe relevant risk
management
policies will be
published on NPC's
website.

Performance
Management andImprovement
The performanceof risk issues willbe tracked,
recorded and will
be adjusted andimproved timely.

Issue ofEnvironment

Issue ofSociety

Issue ofCorporate
Governance"Risk Management
Promotional Organization" on
NPC's website

19
44

Ongoing
Sustainable
Governance
Strategy

1Green
Environment
Management
Promotion

Product
Value
Expansion

Creating a
Happy
and Safe
Workplace

The Pursuit of
Co-Prosperity
and a Better
HomelandAppendix

1.3.2 Operational Risk Evaluation andResponse Measures
The Company's "Risk Management" has identified 22 risks, including "climatechange", in 2022 ( 7 risks in environmental aspect, 4 risks in social aspect, and11 risks in corporate governance). Please refer to "Risk Management" on NPC's
website for the management strategies, mitigation measures, and management
departments of various risks.
"Risk Management "on NPC's website

NPC's Major Risk Issues in 2022

Environmental (E)Social (S)Corporate Governance (G)Climate change*, Greenhousegas management*, Air
pollutant management*,
Waste management*,
Controlled chemical substancemanagement, Water resource
management*, Energy
management*

Human rights and talentretention* (including employee
benefits and compensations),
Occupational health andsafety*, Industrial and public
safety*, Epidemic risk

Ethical business management*,
Legal compliance*, Changes
in interest rates, Changes
in exchange rates, Loaningof funds, Endorsements/
guarantees, Derivativetransactions, Supply
interruptions, Market risk (e.g.,
US-China trade conflicts,
ECFA termination), Equipment
maintenance, Information
security threats

Note: Risk items that are both major sustainability issues of the Company are marked with "*".

1.3.3 Information Security Management
To ensure the security and stability of the information
network, the Company has formulated specificinformation security management measures in the"Cyber Security Management Act." Specifications
on the management of information systems,
networks, and personal computers, as well as thesafety code of conduct for employees to surf theInternet, as well as sending and receiving emails,
are briefed as follows:

Information security policy goals
Information security policy goals● Ensure the continued operation of the Company's business operations and the safe and stable use of
information services provided.
●

Ensure the confidentiality, integrity and availability of the information assets held by the Company,
and protect the security of business secrets.

●

Introduce international information security certiﬁcation and verify operations through external thirdparty veriﬁcation companies to establish requirements that comply with regulations and international
standards.

2022 Sustainability Report45Nan Ya Plastics Corporation

Focus on Promoting Information Security Management of NPC

Import international information
security standards●

ISO 27001 Information security,
cybersecurity and privacy protection― Information security management
systems ― Requirements●

IEC 62443 Industrial Automation andControl Systems●

Obtain international
information security technology
license(Information security
specialist)

Data backup mechanism●

Replacement and consolidationof old databases●

Build a data backup center●

Develop database backup
procedures●

Database backup integrity audit●

Protect against hacker attacks

Database disaster response andrecovery drill

Ensure continuous
system operation anddata security●

Strengthen laptop hacker attack
protection●

Introduction of process information
security monitoring platform●

Set up the process network
demilitarized zone (DMZ)●

Upgrade encrypted transmission
mechanism for external websites●

Strengthen the breadth and depth of
information security drills

Conﬁdential leakage protection●

Block USB devices andinstantcommunication ﬁle transfer●

File encryption protection
mechanism●

AI employee behavior identiﬁcation
model

●

BI smart platform two-factor
authentication

Implement Information Security Management Rights and Responsibilities andPromote the Establishment of Information Security Organizations
In order to comply with the three-level information security classification regulations issued by the Financial
Supervisory Commission on December 28 , 2021 to implement the "Regulations Governing Establishment ofInternal Control Systems by Public Companies." NPC set up a "Chief Information Security Ofﬁcers" in July 2022 ,and the assistant manager of the President's Ofﬁce will serve as the chief. In addition, the Company has alsoestablished a dedicated "information security management unit" and assigned professionals as dedicatedinformation security supervisors and dedicated personnel responsible for promoting, coordinating, supervising,and reviewing information security management business to ensure the effectiveness of information security
management operations.
To improve the professional functions and execution efﬁciency of the Company's information security workforce,the dedicated information security managers and personnel have obtained valid international professional
certiﬁcates listed in the Information Security Council of the Executive Yuan, including EC-Council CEH (CertiﬁcatedEthical Hacker), EC Council CTIA (Certiﬁed Threat Intelligence Analyst).

19
46

Ongoing
Sustainable
Governance
Strategy

1

Product
Value
Expansion

Green
Environment
Management
Promotion

Creating a
Happy
and Safe
Workplace

The Pursuit of
Co-Prosperity
and a Better
HomelandAppendixStrengthening Digital Security Resilience
In response to the policy proposition of government departments to strengthen the resilience of digital
information security, we have improved the information security management system and management
procedures through the institutional and management aspects. We also use technical methods to explore
and improve internal self-weaknesses, external defense strengthening, and enhance employee safety
awareness.

Continue to Strengthen Information Security Defense Capabilities
NPC's security defense strategy adopts the "multi-layered depth defense structure" to build a firewall
and Intrusion Prevention System. At the same time, comprehensively implement the anti-virus software
deployment, managed server administrator account, USB storage media control, malicious URL, andemail attacks such as ﬁltering and other measures. To respond to external network attacks and advanced
persistent threats, social attacks, and newer hacker attack techniques to effectively protect Company
information network systems.
Facing more severe external information security challenges and increasingly evolving hacker attacks, theCompany not only maintained the operation of the existing information security defense system in 2022 , wealso continue to invest many resources to reduce information security risks. The main technical actions are
as follows:
1 . A new EDR (endpoint detection and response) system is added to portable laptops and servers to
improve information security protection capabilities.
2 . The external service website has been fully upgraded to a HTTPS (HyperText Transfer Protocol Secure)encrypted transmission mechanism to improve website browsing security.
3 . Set up a DMS (Demilitarized Zone) in the industrial control area to strengthen the process environment's
external network access protection.
4 . Upgrade the website vulnerability scanning tool to perform website system vulnerability scanning
operations more efﬁciently, accelerate risk assessment, improve timeliness, and reduce the risk of hacker
intrusion.

Apply OpenAI Red Teaming Network
To test the security and defense resilience of NPC's overall information network system, a third-party
professional vendor, "CHT Security Co., Ltd." was commissioned in July 2022 . Through a third-party
professional perspective, hacker techniques are used to conduct a comprehensive scan and vulnerability
discovery of the Company's information network system and improve it. Reduce the Company's information
security risks.
The "OpenAI Red Teaming Network" was completed on December 22 , 2022 , and the weaknesses
discovered due to the drill will be improved and summarized in the project results report as a basis forcontinuous improvement in the future.

Apply ISO 27001 Information Technology ― Security Techniques ― Information
Security Management Systems ― Requirements

To ensure NPC's information security management operations comply withinternational standards, the Company will gradually introduce "ISO 27001
Information Technology ― Security techniques ― Information security
management systems ― Requirements" according to the hazard risk level. On
December 29 , 2022 , Taishan Computer Room passed an external third party
to Verify the Company's verification operations and obtain the ISO 27001
certiﬁcate in February 2023 .

2022 Sustainability Report47

Nan Ya Plastics Corporation

Strengthen Employee Information Security AwarenessIn order to enhance the information security awareness of all employees, a series of information security
education training and drills were held in 2022 , including:Handled "Online Information Security
Training"

A total ofHandled "AEO Supply Chain Security"
Online Training

A total of

10 , 977 participants and a total of 5 , 489

training hours.

3 , 647 participants and a total of 1 , 824

training hours.

Handled training for information
security professionals and information
personnel:"Information Security
Training - Introduction to the Latest
Hacker Network Attack Techniques"

A total of

61 participants and a total of 183 training hours.

Conducted employee email social
engineering drills

A total of

3 , 179 people participated.

Tested employee click rate on email
links without warning

9.5%

1.4 Issues of Special Concern
NPC cooperates with the Yunlin County Government to classify food waste
The Yunlin County Government promoted the classiﬁcation of raw and cooked food waste four years
ago, processed it into organic materials, and provided free fertilization to communities and schools.
In 2022 , the Yunlin County Government commissioned the NPC composting plant to apply for a
fertilizer registration certificate. By December 2022 , the relevant procedures have been completed
and launched as "Yun Fertilizer." Every household in Yunlin County generates about 40 metric tons offood waste daily. The central government subsidizes food waste dehydration equipment in the county,
which is in Huwei, Erlun, Beigang, and other towns. After intermediate treatment with crushing anddehydration equipment, it is sent to NPC, commissioned by the Ministry of Environment. The Company's
compost plant produces organic materials.
Food waste collected can produce about 5 , 000 bags of 20 kilograms of organic
material per month. No formal fertilizer certificate has been applied for before,
and it is only available to communities, schools, and farmers for free and used asa soil conditioner. As of August 2022 , more than 5 , 000 tons and nearly 220 , 000
packages have been issued. Given farmers' huge demand for fertilizers, the Yunlin
County Ministry of Environment entrusted the NPC's compost plant to apply for a
fertilizer registration certiﬁcate to be rigorous. Now that the relevant procedures havebeen completed, organic matter was ofﬁcially renamed "Yun Fertilizer."
Impact and Effectiveness
Assist the Yunlin County Government in handling food waste recycling issues and fulﬁll their corporate
responsibilities.

1948

Ongoing
Sustainable
Governance
Strategy

1

Product
Value
Expansion

Green
Environment
Management
Promotion

Creating a
Happy
and Safe
Workplace

The Pursuit of
Co-Prosperity
and a Better
HomelandAppendix

NPC cooperates with President Chain Store Corporation to promote
the recycling of PET bottles to build a green circular supply chain
NPC has actively implemented green environmental protection in recent years. In 2022 , NPC
announced that it would cooperate with President Packaging Ind. Corp. and President Chain Store
Corporation to jointly build a "Bottle to Bottle" PET bottle recycling system in Central and South Taiwan
and outlying islands. NPC will recycle and crush PET bottles through the circular economy resource
recycling machines installed in 7 -ELEVEN stores and then combine them with NPC's advanced polyester
recycling technology to regenerate them into PET bottles, giving discarded PET bottles a new lease oflife, establishing a green and regenerative circular supply chain.
NPC has been committed to recycling and regenerating PET bottles and other polyester products after
consumer use since 2007 . It strives to develop environmentally friendly and sustainable products andadheres to the business philosophy of protecting the earth and sustainable development. Comparedwith traditional petrochemical processes, advanced polyester recycling technology can reducecarbon emissions by approximately 72 %. According to statistics, about 14 . 6 billion PET bottles havebeen recycled from 2020 to 2021 , reducing carbon emissions by 320 , 000 tons, equivalent to the total
annual carbon absorption of 809 Daan Forest Park.
NPC has built polyester recycling production lines in Taiwan, China, Vietnam, the United States, Thailand,
and the Philippines, with a production capacity of approximately 220 , 000 tons in 2021 . The annual
production capacity of recycled products is estimated to double to 420 , 000 tons in 2023 .
The Taiwan Food and Drug Administration, referring to international practices, announced on May 12 ,2022 , the "Procedure for application for suitability of raw materials for PET reconstituted ester granules
used in food container packaging manufacturing. " Manufacturers that have passed the review canuse food PET recycled materials as raw materials for manufacturing food utensils, containers, andpackaging. In addition to obtaining US FDA, EU EFSA, and other certiﬁcations, NPC has become one of
the ﬁrst domestic manufacturers to apply for licenses.
Impact and EffectivenessWork with manufacturers to promote the application of recycled products, increase the sources of recycledmaterials, and jointly create an environmentally friendly recycling life circle.

2022 Sustainability Report49Nan Ya Plastics Corporation

chapter2

2.1 Diversified Product Application

Product
Value
Expansion

51

2.2 Green and Environmental-friendly 56
Innovation
2.3 Customer RelationshipManagement

19

64

Ongoing
Sustainable
Governance
Strategy

Product
Value
Expansion

2

Green
Environment
Management
Promotion

Creating a
Happy
and Safe
Workplace

The Pursuit of
Co-Prosperity
and a Better
HomelandAppendix

NPC is committed to providing diverse and high-quality products to customers. In addition to continuing to invest in
R&D and innovation, the Company uses new technologies such as AI and digital transformation to strengthen the
Company's competitiveness and product quality, as well as improve supply chain management, in the hopes ofgenerating a good cycle for business partners and contributing to the industry's sustainability.

Strategy●

United Nations Sustainable Development Goals (SDGs)

Reinforce R&D and innovation and enhance customer
service2022 Implementations（Did not meet the goals; Goals met; ★ Exceeded
expectations）

2022 goals

Medium andLong-term Goals（2024 - 2030）

Short-term Goals（2023 Goals）

Reinforce R&D and innovation and enhance customer service●●●

Strengthen researchand development andincrease the proportionof differentiated andhigh-value products.
Carry out the customer
satisfaction survey
and timely review andimprove.
No major violation
regarding productlabeling, customer
privacy, etc. (with apenalty exceeding NT$ 1
million.


The Company's R&D
expenditure in 2022
exceeded NT$1 billion.
Overall customer
satisfaction survey resultsin 2022 reached 4.3 points,
accounting for 86% of thetotal scoreNo major violation
regarding productlabeling, customer
privacy, etc. occurred in
2022.

●

Strengthen research anddevelopment and increase theproportion of differentiated andhigh-value products.

●

The cumulative number ofpatents continues to grow●Conducted customer
satisfaction survey and achieved
overall satisfaction level.

●No major violation regarding
product labeling, customer
privacy, etc. (with a penalty
exceeding NT$ 1 million.

●

Maintain customer
relations via
innovation and
R&D, helping thecompany seize
market trends
and develop apotential market.

2.1 Diversiﬁed Product Application
The Company produces diverse products, ranging from electronic materials,
chemical products, polyester products, plastic products, electromechanicaland switchboards. The main product market position (global rankings) are as
follows. For detailed products, please refer to "Product Overview" on NPC's
website.

"Product Overview" on
NPC's website

Revenue proportion
Electronic materials

Chemical products

Polyester
products

Plastic
products

46 %

23 %

18 %

12 %

Note 1 : The "Other" items include products such as "Electrical and Mechanical" and "Switchboards".
Note 2: The distribution of each category of "products" is due to the diverse general categories of theCompany's product units (such as SH, tons, meters, etc.). Please refer to the annual report on
production and sales quality table.

Others 1 %2022 Sustainability
Report2022年永續報告書2051

Nan Ya Plastics Corporation

Market Positions of Main Product (Global Rankings)

1

2

●

Plastic
secondaryprocessing● Epoxy● Glass yarn(electronicgrade)●●

Copper foil
Anhydride●3

Copper cladlaminate(CCL)● Glass fabric●

4

Ethyleneglycol (EG)● Bisphenol-A
(BPA)

●

5

Plasticizer
products…

●

11

Polyester
products

2.1.1 Major Brands
Most of the products are marketed globally under NPC's brandgood industry reputation.
（Dec. 1 , 2007）

Product
PVC cling ﬁlm

Product
Polyester ﬁber

Applications
Packaging

Applications
Garment

ECO

19
52

TAIRILIN

Jiemei Film

Neuma

（Dec. 16 , 2000）

Product
Energy-saving
airtight POM
window, Entrance
ﬁre door, SMC door
Applications
Interior and outdoor
construction
materials

Deluxe（Jul. 16 , 2011）（Nov. 16 , 1997）

Product
Panel and decking,decorative panels

Product
Hollow tiles, plastic ﬂooring,hollow foamed plates

Applications
Interior and outdoor
construction materials

Applications
Flooring, furniture board,door panels. Years of hard work have resulted in a
Splendid（Feb. 16 , 2002）

Pearlescent Paper(PEPA)（May 1 , 2010）

Product
PU artiﬁcial leather

Product
Synthetic paper

Applications
Sofas, ofﬁce chairs,
car upholstery

Applications
Printing, tags andlabelsNan Ya ICE COOL
insulation ﬁlms
(Jan. 1 , 2017 )Product
Energy-saving ﬁlms
Applications
Insulation for glass
panels in vehicles andbuildings

SAYA(Sep. 16 , 2020 )Product

SAYA 365 , PET bottle recycling
yarn, SAYA RSCUW grey cloth,
leftover materials recycling Silk,
SAYA GARMA, fabric recycled silk

Applications
Clothes, home furnishings,
shoesOngoing
Sustainable
Governance
Strategy

Product
Value
Expansion

Green
Environment
Management
Promotion

2

Creating a
Happy
and Safe
Workplace

The Pursuit of
Co-Prosperity
and a Better
HomelandAppendix

Note: For detailed product information, please go to the websites listed below:"Product
Overview" on
NPC's website

NPC's PVC cling
ﬁlm website

NPC's energyNPC syntheticsaving airtight POM
paper andwindows website
compound paper
website

NPC's polyester
ﬁber products
website

NPC "SAYA "brand website

2.1.2 Innovation and Development of ProductManagement Processes of R&D and Innovation
1.R&D Organization
A development team in the management ofﬁce, technical department, and technical group has been set
up for each of the Company's divisions, which are responsible for new products/development/production/
quality assurance, and so forth. An independent R&D Center for high-end products has also been set up
to integrate inter-departmental resources, assist departments in breaking through technical obstacles, andexpand into new markets.

2.R&D Operational Model●

Integrate technical and market aspects, hold regular production, sales, and technical meetings, anddevelop high-value products with development potential that meet the market's short-, medium- andlong-term needs.
● Cooperate with domestic and foreign partners, including peers, raw materials suppliers, equipment
manufacturers, customers, universities, and research institutions to jointly develop products and markets
to create synergistic growth.

Market Aspect
External Market Research● Industry trends andcompetitor technicalsurvey.
● Domestic andinternational exhibitions
and seminars.
Internal Production andSales Information● Market and customer
demands.

Technical Aspect1

Feasibility

2

Laboratory
Development

3

Certiﬁcation of
Online Volume Test

External Resources
Introduction● Cooperation between
foreign manufacturers
and domestic industry,
government, andacademia.

4

Mass Production
Promotion Process
Optimization Patent
Application

Internal Technology
Integration● Production equipment andprocess integration.

R&D Investment
To reduce raw material costs from directly
producing new products, the Company
has purchased various trial and mass
production equipment and precision
analytical instruments. This also enables thecompany to provide small-batch samples forcustomers to evaluate, thereby shortening
the development schedule. R&D expenses in
the past 2 years are as follows:

The trend of R&D Expenditure in the past
2 years
Unit: NT$ thousand
NPC

Subsidiaries in Taiwan

2021

1 , 341 , 713

2021

572 , 2032022

1 , 316 , 670

2022

609 , 177

2022 Sustainability
Report2022年永續報告書2053

Nan Ya Plastics Corporation

Innovative R&D and Product Applications
NPC's products include plastics, chemicals, electronics, ﬁbers, and other ﬁelds. They are divided according
to product categories: plastic products, chemicals, electronic materials, artiﬁcial ﬁbers, electromechanicaland switchboards, etc. In recent years, in addition to implementing Industry 4 . 0 intelligent chemicalfactories in production lines, we have also followed government policies. Efforts are made to develop
innovative products, including five primary innovative research and development directions: functional
materials, green and environmental sustainability, medical materials, energy materials, and intelligent
mobility. There are a total of 25 R&D areas. Please refer to the Company's annual report for the future R&D
projects expected to be invested.
● Lightweight●

Packaging materials
Agricultural materials● Functional TPO/ﬂuorine ﬁlm
●

●
●

●

Functional ﬁbers
High-temperature resinmaterials

Nanomaterials● Automotive materials● IoT/ 5 G high-frequency
materials● Functional PET ﬁlm

New generation of
display panel material●

Third generation
semiconductor substratematerials

Green andenvironmental
sustainability

Functional
materials●●

CO 2 resource application
Eco-friendly and recycling
materials● Energy-saving/ﬁreproof
materials● Single material application
development●

Smart mobile

Innovative R&D
and ProductApplications

Medicalmaterials●

Blood related materials●

Precision medical ﬁlm●

Electrospun membrane
applications●

Dental and orthopedic
materials

Energymaterials●

Anti-burning Runaway Composite●

Solar backsheet●

Cathode material●●

Anode material

Materials for wind power
generation"IP Management"on NPC's website

Innovative R&D Patents & IP Rights Protection
To encourage innovation and strengthen the protection of
intellectual property (IP) rights, the Company has formulated"R&D Management Procedures" and "R&D Personnel Incentive
Measures" and introduced a knowledge management platform
to enhance R&D and innovation competencies. Moreover,various measures have been implemented to protect patents,
trademarks, and trade secrets. The Company uses a digitizedmanagement system to mitigate hazards and risks and reports thestatus of IP rights management to the Board of Directors at least
once a year. For further details, please refer to "IP Management"on the NPC's website. The innovation and R&D patents over theyears are listed in the image below:
1954

Unit: pieces
1 , 224
1 , 028
814

519

Patentapplication
476

225

225

2000 - 20192000 - 2020

510

Patentapproval
2000 - 2021 2000 - 2022 Year

Ongoing
Sustainable
Governance
Strategy

Product
Value
Expansion

Green
Environment
Management
Promotion

2

Creating a
Happy
and Safe
Workplace

The Pursuit of
Co-Prosperity
and a Better
HomelandAppendixSigniﬁcant R&D Results in 2022
NPC continues to promote various product/process innovations. Key projects in 2022 are listed below:

Green andenvironmentally
sustainable

Thermal insulation paint/anti-corrosion paint, PVC rubber waterbased materials, biodegradable PBAT membrane materials,
biodegradable PBAT membrane, PET fabric recycling process/
BHET monomer chemical recycling development, PET industrial
material recycling applications

Medical materials

Medical materials（blood collection tubes, Electrospun film
（Shinein-biotech）、Blood bags and regenerated medical
materials）

Energy materials

Aluminum plastic film, Anti-burning Runaway Composite, Highheat-resistant copper foil / Ultra-thin copper foil / Copper foil
for lithium batteries / Copper foil for high frequency, Cathodematerial/Anode material

Smart Mobility

5 G telecommunications, Low dielectric resin for high frequency,
Low expansion coefﬁcient resin

Functional materials

TPU rubber particles and film materials, Film materials/glue/tapefor semiconductors, Functional APET multilayer composite board/
thick board, Long fiber reinforced engineering plastic pellets/
proﬁles, Semiconductor tubes, PET glue/modiﬁed pellets/industrial
plastic pellets、Film materials for optoelectronic semiconductors,
Double effect process release ﬁlm

Boosting the Excellent Performance of Innovation and R&D TeamIn order to encourage R&D work, FPG has set up various R&D incentives to reward patent proposals,
certiﬁcations, and critical products or patents that derive signiﬁcant beneﬁts. All departments are regularly
invited to convene the "FPG Technological Application Seminar" to select innovative works for competitions
and to announce relevant results. Divisions with superior research results are publicly praised and awarded
bonuses to inspire the exchange of ideas and further stimulate research and innovation within the Group.

2022 Sustainability
Report2022年永續報告書2055

Nan Ya Plastics Corporation

2.2 Green and Environmental-friendly
Innovation
2.2.1 Green and Environmentally Friendly Products
The Company attaches great importance to the health and safety of our customers. Therefore, the production
process is continuously improved (such as reducing harmful formulas, energy saving, carbon reduction, and green
product development). To follow market trends and meet customer needs, we have shifted our focus to produce
non-toxic and environmentally friendly products with improved production processes as well as green energy
products. NPC's major green and environmentally friendly products are as follows, and the estimated annual
carbon reduction (CO 2 emissions reduction) beneﬁt is about 76 , 212 tons in total:
Green andEnvironmentally
Friendly Solutions

Major Products

Description of Green Beneﬁts●

Energy efﬁciency

Thermal Insulating Coating

Veriﬁed by National Taiwan University of Science and Technology toconserve 31 . 8 % of air conditioning energy consumption in summer.
● Actual coating of solvent tankards in Mailiao has been veriﬁed that
VOC effusion can be reduced by 60 %.

ICE COOL (Insulation Film)

Non-toxic, anti-scattering, highly transparent, and high IR with UV
resistance, allowing users to reduce energy consumption while ensuring
internal spatial safety

Dry type transformer

The energy efficiency ratio is 99 . 2 , which is 4 % higher than the CNS
national standard value of 98 . 8 .

Amorphous resin type dry
type transformer

Compared with traditional silicon steel sheet transformers, total energy
consumption and CO 2 emissions (kg/year) can be reduced by 36 %,and each unit can reduce carbon emissions by 9 . 3 tons per year.

Energy-saving airtight POM
window

The thermal conductivity coefﬁcient is low, and the thermal insulationis 1 / 1250 of that of aluminum steel, which can save more than 20 % ofenergy consumption.

Aluminum-plastic ﬁlm

The aluminum-plastic film is used for lithium battery packaging andcould be further used in energy storage systems and electric vehicles
to reduce oil/coal consumption.
●

Long-ﬁber reinforced
engineering plastic

With high speciﬁc strength, modulus, and high impact resistance, it
can be used in products requiring high strength and lightweight.
● If the product is designed with the same physical properties andstrength, compared with short ﬁber pellets, taking PP with 40 % glassﬁber as an example, the weight can be reduced by about 20 ~ 25 %.

Emissions reduction

Water-based treatment agent
Water-based ink
Water-based PU leather
Non-VOC anti-corrosion
coating
Pressure sensitive adhesive
Water-based Epoxy resin
Glass ﬁber water-based slurry
High solid content PU resin

Water-based or solvent-free products could effectively exclude
emission rates of total volatile organic compound (TVOC).

Waste reduction

Eco-friendly plasticizers (DHIN,
DHEH, DOTP)
Decomposable plastic wrap
(PBAT)

Water conservation

Non-toxic

19
56

Celaperm
PVC leather, PVC sheeting,
PU leather, TPU leather
PP construction material
sheeting Green building resin(waterproof material, IAAF
runway)●●Reduces emissions of phthalate-containing wastes.
PBAT furniture is biodegradable and reduces waste.

Saves up to 94 % of water consumption in comparison with traditional
dyed yarns, reducing carbon emissions by 2 , 528 tons in 2022 .
●Could produce products in compliance with REACH and RoHS,
solvent-free TPU environmental tape could be 100 % recycled.
● Used in waterproofing materials and runway PU resin, the synthetic
raw materials are MDI instead of TDI and plasticizers instead of
traditional solvents. The formula has low VOC and meets therequirements of green building materials.

Ongoing
Sustainable
Governance
Strategy

Green andEnvironmentally
Friendly Solutions

Product
Value
Expansion

2

Green
Environment
Management
Promotion

Major Products

Creating a
Happy
and Safe
Workplace

The Pursuit of
Co-Prosperity
and a Better
HomelandAppendix

Description of Green Beneﬁts

Titanium catalyst
No heavy metal polyester resins

Replaced traditional antimony catalysts with titanium catalysts toavoid emissions of heavy metals during the dyeing process of polyester
products, or waste antimony coming into contact with the soil.

Eco-friendly plasticizers (DHIN,
DHEH, DOTP)

DHIN, DHEH, and DOTP have low toxicity. Their PVC products havepassed the biocompatibility tests for acute toxicity, skin irritation, skinsensitivity, hemolysis, and cell toxicity.

Epoxy resin surface coating
Epoxy resin primer

NPC's epoxy ﬂooring coat adopts a self-ﬂattening form that adheres tothe surface of the ﬂoor and forms smooth and seamless epoxy-coatedflooring. Provides good adhesion, anti-abrasion, withstands pressure,insulation, water-resistance, oil resistance, and is durable against
generic drugs. And meets relevant standards for low toxicity and has
achieved the "Green Building Material" label, and comes with beneﬁts
including low toxicity and low formaldehyde effusion.

High-frequency substrate used for5 G communication

Communication boards are non-toxic materials that comply with RoHS
regulations. Demand for related communication boards is growing due
to 5 G communications.

Non-toxic

Polymer plasticizer
Polyethylene pipes for conveying
domestic water and general
purposes

The product does not contain lead (Pb), cadmium (Cd), mercury (Hg),hexavalent chromium (Cr 6 +), polybrominated diphenyl ethers (PBDE),
polybrominated biphenyls (PBB).

Polyethylene pipe for gas

HealthMold-resistant and bacterial
resistant PVC leather, PVC sheeting,
PU leather, and TPU leather

NPC can produce anti-mold and anti-bacterial (Staphylococcus, E.
coli, pneumonia) products.

Eco-friendly plasticizers(DHIN, DHEH, DOTP)

Does not contain reproductive toxicity and can be used for
manufacturing yoga mats, respiratory masks, health balls, food packaging
materials, sports and recreational ﬂooring, toys, and medical products.

Epoxidized soybean oil

It is bio-based.

Bio-based high-solid PU resin

It is biobased and its products can be labeled as USDA Certified
Biobased Product.

Decomposable plastic wrap

Use biodegradable materials for plastic wrap products, certiﬁed by BPI/DIN CERTCO.

Medical materials

Products include surgical anti-adhesive film, alveolar periosteum,and blood materials (blood collection tubes, blood bags), which can
improve human well-being.

PET bottle cotton non-woven fabric
R-APET
Recycled polyester resins
Recycled polyester long ﬁber
Recycled polyester staple ﬁber
(cotton)Recycled polyester ﬁlm

Recycled
products

Safety●After recycling PET bottles, waste textiles, and industrial PET ﬁlms, they are
made into recycled polyester pellets. Forming various recycled products,
approximately 73 , 250 tons of carbon will be reduced in 2022 .
● Recycle plastic bottles into Behnyl alcohol. TPU rubber particles andfabric made from Behnyl alcohol and isocyanate. Materials usedin Ethylene Viny Acetate, synthetic leather and other products can
reduce carbon emissions by 20 % and meet the requirements ofregeneration and environmental protection.

Recycled polyester industrial
plastic resins (PET industrial material
recycling application)

1 PET industrial material recycling and reprocessed PET resins havea significant reduction in CO 2 emissions compared with PET resinsproduced by traditional petrochemical processes. They can reduce
CO 2 emissions by approximately 86 . 2 ~ 95 . 67 % and reduce carbon
emissions by 1 , 206 tons in 2022 .

Regenerated behnyl alcohol

Recycle PET bottle for alcoholysis, and introduce different acid raw
materials to produce different behnyl alcohol, which can be used in
PU leather base materials, impregnated materials PU, Ethylene Viny
Acetate for shoes, environmentally friendly TPEE ﬁlms, etc., to meet therequirements of recycling and environmental protection.

PP recycled pallet

Using 100 % recycled materials, and regularly entrusting professionalorganizations to conduct RoHS inspections, all are free of harmful
substances.

Fire-retardant wallpaper
Automotive PVC leather/PU leather
Fire blanket

Prevents ﬁre and protects personal safety.

SMC Fire Doors

Shock-resistant, ﬁreproof, and smoke control, to protect property andasset.

2022 Sustainability
Report2022年永續報告書2057

Nan Ya Plastics Corporation

Environmental Labels and Certiﬁcates

Global Recycle
Standard, GRS

Green MarkGreen Building
Material Label

Carbon footprint
label

Home
compostable

USDA ORGANIC

Singapore Green
Building Product,
SGBP

Low carbon
material (LCBA)

RoHS
compliant

SCS global
services

Promotion Practices and Achievements of Plastic Recycling
Recycling of PET bottle●

PET bottles are recycled and pelletized to replace virgin polyester resins,
reducing carbon emissions by 72 %.
● 7 billion recycled PET bottles were used in 2022 , reducing carbon emissions
by 158 , 200 tons annually.
● After recycling, 90 % is used to produce technically challenging and highvalue-added ﬁlaments. (It is mostly used to produce staple ﬁbers, sheets,
etc., in the industry; only 7 . 7 % is used for long ﬁlaments.)● Continue to expand the production line. The production capacity target ofrecycled resins is to reach 60 % of that of virgin bottle resins in Taiwan.

Total recycled products/ Estimated sales◆ 1 ton of recycled product = 80,000 PET bottles

2020

74 , 016 tons ≌ 5 . 9 billion PET bottles
which can circle the
100 times.

2021◆ Carbon emission reduction = (virgin polyester resinscarbon emissions – recycled virgin polyester resins carbon
emissions) × sales volume

2020

127 , 678 tons/year ≌Carbon absorption of 327 Daan Park

2021

109 , 008 tons ≌ 8 . 7 billion PET bottles
which can circle the
148 times.

188 , 039 tons/year ≌

2022

2022

88 , 140 tons ≌ 7 billion PET bottles
which can circle the
120 times.

19
58

Total CO 2 emissions reduction

Carbon absorption of 482 Daan Park

152 , 042 tons/year ≌Carbon absorption of 390 Daan Park

Ongoing
Sustainable
Governance
Strategy

Product
Value
Expansion

Green
Environment
Management
Promotion

2

Creating a
Happy
and Safe
Workplace

The Pursuit of
Co-Prosperity
and a Better
HomelandAppendix

Recycling of release ﬁlm for the multi-layer ceramic capacitor (MLCC)
Previously, it was disposed of as waste after customers used it. Now it is recycled by the Company for the
production of UP resin and polyester staple ﬁber and other products. The recycling capacity is 600 tons/month, andthe release ﬁlm used for MLCC and optical purposes could be recycled after domestic customers used it.

UP resinpolyester
staple ﬁber
Forproduction
Release ﬁlm
used for MLCC

RecycleAfter use

Multi-layer ceramic
capacitor (MLCC)

Waste ﬁlm (contains
ceramic slurry)Back-end
application

Recycled resins
Modiﬁed resins

A-PET foamMaterials for3 C electronic
products

Recycling of fabrics
The Company has had the recycling technology for pure PET grey cloth, ﬁnished cloth, and leftover materials andhas established a pre-treatment and pelletizing production line with a monthly production capacity of 1 , 000 tons.
We are currently developing high-end depolymerization and recycling technology by ourselves and will build apilot plant as the basis for future mass production.

Recycling source

Used clothes

Waste clothes

leftovers
RecycleProcess

FabricshreddingCatalyzation
and alcoholysis

Decolorizationand puriﬁcation

BHET

Recycled resins
Quality = virginpolyester resins

PP pallet recycling
Introduce the use of outsourced recycled PP pellets and extra products generated within the Company toproduce environmentally friendly plastic pallets with a low carbon footprint. The annual output in 2022 will be
11 , 650 tons (accounting for 83 %). Compared with original products, it has about 76 % carbon reduction effect.

2022 Sustainability
Report2022年永續報告書2059Nan Ya Plastics Corporation

Product Development - Single Material Design
Cooperate with major international brands in various industries to ensure a single source of materials throughleasing, selling or exchanging old ones for new ones. Combined with benchmark brand marketing anddesign capabilities, we ensure the sustainable promotion of a single material. Taking advantage of NPC's
diversified advantages in plastic processing, we have the opportunity to become Taiwan's number one
green gold recycling enterprise. The Company is currently undertaking the following development projects:

Developmodiﬁedpolyester
resins●Curtain material simplification: Cooperate with major domestic curtain manufacturers to replace
other materials that are unfavorable for recycling with modiﬁed PET to produce all-polyester curtains,which are expected to be shipped in Q 2 .

●Uniform clothing/backpack materials: Currently, traditional clothing backpack accessories (such as
zippers, buttons, etc.) are mostly made of non-PET materials, which need to be manually removed
after recycling. Modiﬁed polyester particles are developed for accessories to simplify the materials
and facilitate recycling. The clothing backpack product is being veriﬁed.

●

All-polyester sports shoes: The current sports shoes are made of different functional materials and are
produced by adhesive bonding. Currently, by developing modiﬁed polyester particles that can be
foamed, thermally bonded and elastic. The existing process is used to make the whole shoes are all
made of polyester and are easy to recycle.

●

Single-material suitcase: Use modiﬁed PET resins to replace the current commercially available PC
and ABS pellets, use traditional techniques to produce suitcase panels, and use modiﬁed polyester
pellets with accessories to completely replace zippers, handles, case wheels and other non-standard
materials. Made of PET, it is certiﬁed by SGS and complies with suitcase speciﬁcations, making thesuitcase easy to recycle after removing the aluminum alloy tie rods.

Clothing and accessories are designed using a single material

Zippers, buttons,
buckles, etc.
Recycled andmodiﬁedRNAA 80

Processing andforming

Curtains are designed using a single material

Allpolyestermaterials

Develop lightweightenvironmental
white ﬁlm to replacealuminum sheet.

Headrail, bottom
rail, and lining
support rods ofRoman shades.

Develop singlematerial
packaging ﬁlm

Based on quality and preservation considerations, functional packaging ﬁlms need to havehigh moisture resistance and oxygen resistance. Since using different materials for lamination
would cause difficulties in recycling, the single-material packaging material (high-barrier
BOPP, BOPE ﬁlm) is developed, which is conducive to future recycling.

Dimming diverterof blinds.

Incinerate after use
Composite
packagingbags ofdifferentmaterials

1960

PET ﬁlm
Aluminum foil
Nylon ﬁlm
PE ﬁlm / CPP ﬁlm

Window cord
assemble ofblinds.

Recyclable after use
PET ﬁlm
Aluminized BOPPﬁlm
PE ﬁlm / CPP ﬁlm

Singlematerial

Environmentally friendly full PE
material packaging bag
BOPE ﬁlm
Barrier coating,adhesive layer
PE ﬁlmOngoing
Sustainable
Governance
Strategy

Product
Value
Expansion

2

Green
Environment
Management
Promotion

Creating a
Happy
and Safe
Workplace

The Pursuit of
Co-Prosperity
and a Better
HomelandAppendix

Features●

NPC has developed single-material CPP film, BOPE film and heat-resistant BOPP film for retort bags,
providing customers with single-material packaging material composite processing, and continues topromote applications.

●

Vertically integrated development and production: In order to drive the value chain to jointly exert theinﬂuence of circular economy, relevant raw materials are provided by FPG to jointly create sustainable
recycling value.

Expected results
Single-material packaging materials (such as PP or PE) can be recycled and remanufactured. It is initiallyestimated that 25 % of packaging waste can be reduced to achieve the recycling characteristics of raw
materials.

2.2.2 Artiﬁcial Intelligence (AI) Applications
Artificial intelligence (AI) has set off a digital revolution worldwide. Since 2018 , the Company hasorganized and trained an internal AI promotions team to develop relevant technologies used in image
ﬂaw detection, virtual instrument establishment, and other application ﬁelds. Through process optimization
and AI technology introduction, the Company hopes to enhance factory automation, digitalization, andintelligence to gradually construct smart factories.

Promotional Organization
The President is appointed by the Chairman of the Board of Directors to act as the general convener of
the Company's AI promotions. The President's Ofﬁce, the manager's ofﬁce and the data scientists of eachfactory (department), and the process field experts jointly form the AI promotion team. With the divisionof labor between the President's Ofﬁce and the manager's ofﬁce AI promotion team, AI projects can be
accelerated.

AI Application Fields and Development Goals
NPC's current areas of AI application include the following 5 areas:
Development goals

VisionExpected
beneﬁtBuild a smart factory that is "adaptive" and resource efﬁcient.
1 . Conduct in-depth research and development on the 5 major application areas,establish independent technologies, and gradually apply AI technology to various
management functions.
2 . Through the integration of software and hardware, the factory has the capabilities
of sensing collection, environmental monitoring, Internet, information exchange,
manufacturing execution, decision-making analysis, etc.

Five major areas of AI application

Process
condition
optimization

Application beneﬁts

1 . Collect data on process and quality
variations to identify key factors.

●

Complete 18 cases in 2022 , with annual
beneﬁts of NT$ 319 , 402 , 000 .

2 . Use statistical analysis or AI-related
algorithms to ﬁnd the best operating
conditions and assist decision-making.

●A total of 102 cases were completed
from 2019 to 2022 , with annual beneﬁts
of NT$ 957 , 886 , 000 .

2022 Sustainability
Report2022年永續報告書2061

Nan Ya Plastics Corporation

Five major areas of AI application

Workﬂow
optimization

Application beneﬁts

1 . Establish smart production andmarketing schedules.

●

Complete 4 cases in 2022 , with annual
beneﬁts of NT$ 3 , 464 , 000 .

2 . Image recognition assists industrial
safety and environmental monitoring.

●

A total of 7 cases were completed from2019 to 2022 , with annual beneﬁts of
NT$ 18 , 272 , 000 .

1 . Establish a quality prediction model
based on process data.

●

Complete 9 cases in 2022 , with annual
beneﬁts of NT$ 46 , 460 , 000 .

2 . Real-timely grasp quality variations
and make adjustments.

●

A total of 35 cases were completed
from 2019 to 2022 , with annual beneﬁts
of $ 196 , 748 , 000 .

●Complete 20 projects in 2022 , withannual beneﬁts of NT$ 19 , 848 , 000 .

●A total of 44 cases were completed
from 2019 to 2022 , with new annual
beneﬁts NT$ 44 , 748 , 000 .

●A total of 44 cases were completed
from 2019 to 2022 , with new annual
beneﬁts NT$ 493 , 986 , 000 .

3 . Design process optimization.

Quality
prediction (virtual
analyzer)

Device statusmonitoring

1 . Apply multi-variable analysis techniques
to establish process or equipment.
Established process or equipment healthindicators
2 . Maintenance cycle estimation.
3 . Equipment life prediction

Defect image
recognition

1 .Use the CNN model to improve defectclassiﬁcation accuracy and perform
automatic quality determination.
2 . Trace the process history and improve
production conditions in series.

AI Professional Talent Training
In order to train AI professionals and strengthen its internal ability to independently develop AI applications,
NPC has carried out three major directions: "training at Taiwan Artiﬁcial Intelligence School", "internal AIrelated education and training", and "industry and academia cooperation". Talent training, the key points
are as follows:
Send talented people to Taiwan Artiﬁcial Intelligence School training
Cumulative number oftrainees

Total training hours
accumulated

Number of trainees
in 2022

Total training hours
in 2022123 people

47 , 232 hours

11 people

4 , 224 hours

AI related education and training

19
62

Cumulative number oftrainees

Total training hours
accumulated

Number of trainees
in 2022

Total training hours
in 202268 events

2 , 036 people

2 events

62 people

Ongoing
Sustainable
Governance
Strategy

Product
Value
Expansion

2

Green
Environment
Management
Promotion

Creating a
Happy
and Safe
Workplace

The Pursuit of
Co-Prosperity
and a Better
HomelandAppendix

Collaboration with the Industry and Academia
Cooperating units in 2022

Ming Chi University ofTechnology

Cooperation results in 2022
1 . The efficiency of the reaction tank of the PA plant I was improved, and the unit
consumption of raw material OX was reduced by 2 kg/ton, with annual beneﬁts of
NT$ 3 , 372 , 000 .
2 . Development of an intelligent pre-diagnosis system for the B 104 turbine aircompressor in EH plant to avoid production losses caused by unplanned shutdowns.
The annual beneﬁt is NT$ 3 , 000 , 000 .

Electronics Department of
FPC

The intelligent formula of PVC rubber particles in Renwu plant I reduces formula researchand development hours, with annual beneﬁts of NT$ 1 , 497 , 000 .

Taiwan Instrument
Research InstituteCommunicate AI models to build a cloud web platform.

AI implementation results and overview
As of the end of 2022 , NPC has promoted 374 AI projects (completed and in progress), with an estimatedinvestment amount of NT$ 589 , 964 , 000 . The estimated annual beneﬁt is NT$ 2 , 504 , 805 , 000 . The key points
are as follows:
Unit: NT$ thousand

Project

Number of cases

Investment Amount

Annual beneﬁtCompleted

232 cases

355 , 949

1 , 711 , 640

In progress

142 cases

234 , 015

793 , 165

Total

374 cases

589 , 964

2 , 504 , 805

2022 Sustainability
Report2022年永續報告書2063

Nan Ya Plastics Corporation

2.3 Customer Relationship Management
NPC puts great emphasis on customer rights and feedback. Enhancing customer satisfaction falls not
only on the sales divisions but also on the collective goal of all NPC employees. When the downstream
customers' business expands, it is an afﬁrmation and support for the Company. The Company hopes to forma virtuous circle and grow with our customers to achieve a win-win relationship.

2.3.1 Collaborative Customer Relations
Mutually-Beneﬁting Interactions
To strengthen customer relationships, the sales divisions regularly visit customers, exchange opinions
on existing or new products, and establish an interactive and timely communication channel. Throughattending product exhibitions, we can talk face-to-face with the customers about market information as
well as integrate customer feedback as an important reference for the Company's operations and future
improvements.

Stakeholder Communication andFeedback Mechanism
NPC
Customersatisfaction
surveyDirectvisit

Issues of Concern
to Customers
Attendingexhibitions/productbrieﬁngs

Customers(Manufacturers, distributors,
retailers and end consumers)●● Price
Service● Environmental
Qualityregulations● Delivery time
● R&D
● Marketdevelopment efﬁciency● Green● Pursueproducts
growth●●Feedback
channelResponding toCustomer Feedback
Customer relationshipmanagement is essential tothe company's perpetualbusiness operation. To
understand the valuable
opinions of customers, NPC
has speciﬁed the following
customer complaints
channel, return, refund,and compensation
application procedures:

19
64

Customer
service

Giving backto the society

Perpetualbusiness
operation"Customer
Feedback Form"

DiverseCommunication
ChannelsCustomer service agent
ﬁlls out the "Customer
Complaint Form"

Product sales service
hotlines and e-mailOngoing
Sustainable
Governance
Strategy

Product
Value
Expansion

2

Green
Environment
Management
Promotion

Creating a
Happy
and Safe
Workplace

The Pursuit of
Co-Prosperity
and a Better
HomelandAppendix

2.3.2Customer Satisfaction Survey

To understand whether our products and services meet our customer's needs and expectations, NPC
collects customers' feedback and suggestions as a reference for improving internal operations. The survey
includes eight significant topics: product characteristics, product quality, delivery time, price, attitude,
technical service, brand image, and overall satisfaction. The survey topics will be adjusted based on thecustomers' concerns.

Customer Satisfaction Survey Model
According to the 2022 customer satisfaction
survey results, the overall satisfaction was 4 . 3
points, accounting for 86 % of the total score.
Seven performance indicators were above"satisfactory," though some product pricing
failed to meet customer expectations. This was
mostly attributed to the fact that customers
perceived that the Company did not adjust
the prices of certain products when their raw
material prices had decreased. The Company
will continue to pursue cost reduction
and share profits with our customers while
maintaining product quality.

Feedback
Review

Customer
Satisfaction
SurveyContinuous
Improvement

NPC Customer Satisfaction Survey in the Past 2 Years
Year

Technical
research

Service
attitude

Brand
image

Productdeliverytime

Product
quality

Productcharacteristics

Product
price

Overallsatisfaction

2021

4.3

4.5

4.4

4.3

4.3

4.3

3.7

4.3

2022

4.3

4.5

4.4

4.3

4.3

4.3

3.7

4.3

Note: 5 points indicate extremely satisﬁed; 4 indicates satisﬁed; 3 indicates neutral; 2 points indicate dissatisﬁed, while 1 pointmeans the customer is extremely dissatisﬁed.

2022 Sustainability
Report2022年永續報告書2065

Nan Ya Plastics Corporation

chapter

19
66

3

Green
Environment
Management
Promotion

3.1 Commitment to Environmental
Protection

72

3.2 Climate Action and Strategy

76

3.3 Air Pollution Management89

3.4 Water Resource Management

92

3.5 Waste Management and Circular
Economy98

Ongoing
Sustainable
Governance
Strategy

Product
Value
Expansion

Green
Environment
Management
Promotion

3

Creating a
Happy
and Safe
Workplace

The Pursuit of
Co-Prosperity
and a Better
HomelandAppendix

To pursue sustainable development of the environment, NPC actively manages all environmental impacts from its operations. The
Company is committed to implementing energy and water conservation projects and integrates the circular use of raw materials,
energies, resources, and waste throughout all plants to prevent or mitigate the risk of environmental impacts. In addition, theCompany has also formulated goals to examine the effectiveness of sustainable performance so as to fulﬁll the responsibilities of green
production.
United Nations Sustainable
Development Goals (SDGs)

Strategies●

Promote circular economy - circular use of raw materials
energies, resources, and waste●

Mitigate climate change risks - promote energy conservationand carbon reduction improvement projects, reducegreenhouse gas (GHG) emissions, and respond to energy
transition policies●

Strictly comply with environmental laws and regulations manage controlled chemical substances and air pollutants
and achieve zero environmental legal violations

2022 Goals

Material Topics
Air pollutant management, circular
economy promotions, water resource
management, waste management,
climate change mitigation andadaptation, greenhouse gas
management, energy management

2022 Implementations（Did not meet the goals;Goals
met;Exceeded expectations）

Short-term Goals

Medium-and Long-term Goals( 2024 - 2030 )( 2023 Goals)

Circular Economy Promotions●

Compared with 2021, consumption
Continue to promoteof water, gas, and electricity
energy conservation
decreased by 27.8%, 22.3%, and 20.5%,
and water conservation
respectively
projects; reduce total
water consumption,
Compared with 2021, watergas consumption, andconsumption per unit productelectricity consumption
decreased by 2.9%, while energy
from the 2021 ﬁgures
consumption increased by 14.0%(gas● Water use reduced
consumption increased by 9.4%,
electricity consumption increased byby 2 %, energy (gas,12.9%, fuel consumption increased
electricity, fuel) reducedby 46.7% at Mailiao site), and wasteby 3 %, and waste
increased by 0.15%, primarily as a
reduced by 1 % at
result of the decrease in production
Mailiao site comparedcapacity in 2022
to the previous year's
consumption per unitAlthough the rainwater recovery in 2022
product
decreased by 359 tons/day (as a result●

Increase rainwatercollection andwastewater reuse ateach business divisionof a 29% reduction in average monthly
rainfall), the rainwater recovery rateincreased by 11.9%, and the wastewaterreuse increased by 212 tons/day●

Continue to promoteenergy conservation
and water conservation
projects; reduce total
water consumption,
gas consumption, andelectricity consumption
from the 2022 ﬁgures●

Compared with theprevious year's unit
product consumption,water consumption is
reduced by 2 %, energy
consumption (gas,electricity, fuel) by 3 %,and waste by 1 % in
Mailiao site●

Increase rainwatercollection andwastewater reuse ateach business division●

Continue to promote water
conservation, energy
conservation, carbon reduction,
and waste reduction as well as
increase rainwater storage andutilization●

Install wastewater recycling
facility and improve rainwatercollection system progressively

Mitigate Climate Change Risks●

nternal audit and external third-party
Complete internal audit  Iveriﬁcation on 2021 GHG inventories
and external third-party
were completed
veriﬁcation on 2021
GHG inventories
 T
he Company's GHG emissions in 2022
● Reduce GHG
reduced by 24.12% compared with
2021, and the emission intensity of unit
emissions or reduceturnover dropped from 2.82 kilotons/
emissions intensity
NT$ 100 million to 2.75 kilotons/ NT$ 100(GHG emissions/ themillionCompany's revenues)
by 2 . 5 % compared with  T
he 1,500KW solar plant at the Hsinkang
the previous year
switchboard plant had its equipment●

Built a 1 , 500 KW solar
energy facility in
Hsinkang switchboard
plant

registration approved in December
2022, and the process of applying
for renewable energy certiﬁcates iscurrently underway●

Complete internal audit
and external third-party
veriﬁcation on 2022 GHG
inventories●

Reduce GHG emissions or
reduce emissions intensity(GHG emissions/ theCompany's revenue) by
2 . 5 % compared with theprevious year●

Set up renewable energy
facilities with 8 % of thecontracted capacity ofelectricity●

Continue to promote energy
conservation and carbon
reduction improvements andengage in external assurance
to enhance energy-saving
technologies and effectiveness●The carbon reduction target
takes "carbon neutrality in 2050 "as the long-term goal. The goals
are set as follows due to different
purposes: Target for external
commitment: Reduce by 20 % by2025 using 2007 Scope 1 + Scope 2
as the baseline year, and by 35 %by 2030 .

2022 Sustainability
Report2022年永續報告書2067

Nan Ya Plastics Corporation

2022 Goals

2022 Implementations（Did not meet the goals;Goals
met;Exceeded expectations）

Short-term Goals

Medium-and Long-term Goals( 2024 - 2030 )( 2023 Goals)

Mitigate Climate Change Risks●●

Maintain "leadershiplevel" on the "climatechange" and "water
security" sectors in 2022
Carbon Disclosure
Project (CDP)
Publish the Company's
ﬁrst TCFD reportMaintained the "leadership level' on
the "climate change" and "water
security" sectors in 2022 Carbon
Disclosure Project (CDP)The Company's ﬁrst TCFD report was
published in June 2022●

Maintain "leadershiplevel" on the "climatechange" and "water
security" sectors in 2023
Carbon Disclosure
Project (CDP)●

Publish the Company's
2022 TCFD report

Target for Internal tightening
management: Reduce by 12 . 5 %by 2025 using 2020 Scope 1 +Scope 2 as the baseline year, andby 25 % by 2030 .
SBTi target: Using 2021 as the baseyear, Scope 1 + Scope 2 will be
reduced by 15 %; Scope 3 will be
reduced by 7 . 4 % in 2027●

Continue to assess the feasibilityof installing solar or other green
energy facilities at each plantsite●Continue to ﬁll and submit
CDP surveys to understand theinternational trends on response
to climate change●

Continue to reduce various
pollutant emissions●

No environmental violation

Strict Compliance with Environmental Laws

19
68

●

Air pollutant emissions
in 2022 to be lower
than 2021

 T
he Company's total air pollutant
emissions in 2022 decreased by
1,127.42 tons compared with 2021●

Air pollutant emissions in
2023 to be lower than in
2022●

Reduce the numberof penalties forenvironmental
violations to less than
50 % of 2021 (less than1)

In 2022, there were two environmental
protection violations one less thanin 2021, but one more than thegoal. The Company will continue toimprove the internal management.

●

Reduce the numberof penalties forenvironmental violations
to less than 50 % of 2022
(less than 1 )Ongoing
Sustainable
Governance
Strategy

Material topics

Product
Value
Expansion

Green
Environment
Management
Promotion

Mitigation and adaptation
for Climate change

GHG management

Corresponding
GRI Standards:－[Impact]

ImpactPolicy andcommitment[Impact]

Air quality management[Impact]●●

Management action

●

●
●
●

tracking

GHG emissions

Following the best available control
technology (BACT) principle, NPC takes theapproach of "effective reduction of pollution
sources and optimization of prevention andcontrol equipment," and continuously reviews
and improves based on the characteristicsof the process; NPC also performs regular
maintenance on the equipment to ensure thebest performance; and provides educationand training to personnel to familiarize themwith system operations.

●

Performance

Air pollutant management

To seize transformation opportunities, NPC adopts " 2050 carbon
neutrality" as its long-term goal, establishes clear carbon reduction
goals, actively promotes "four major carbon reduction strategies,"
mitigates and adapts to the impact of climate change, andinvests in "Formosa Smart Energy Tech Corp." and projects such as
the expansion of electronic-grade and industrial-grade liquid CO 2
plants.

●Action plan

Appendix

1 . Lowering air pollution emissions through1. Improving energy efﬁciency
1 .Externally explaining
technological process optimization or otherand using alternative fuels could
the carbon neutrality
management measures can lower fees andimprove operational efﬁciency
implementation strategy
enhance brand value.
while lowering regulatory risks
and R&D innovation plan
aids in reviewing the
2 . Abnormal air pollution incidents may result
2 .Companies with high carbon
carbon reduction pathin additional management and monitoring
emissions will be subject toand improving external
expenditures for business, as well as agovernment regulations and willcommunication.
reduction in brand value.
be required to establish and carryout carbon reduction procedures,
2 .Physical risks and climate
or they will face huge carbon
transition risks will increase
penalties
corporate operating costs●

Prevention
andmitigation
actions

The Pursuit of
Co-Prosperity
and a Better
Homeland305 Emissions

Corresponding
SASB:

description

3

Creating a
Happy
and Safe
Workplace

Promote diverse carbon reduction management measures basedon the "four major carbon reduction strategies" and the short-,
medium-, and long-term carbon reduction goals.
Entrust a third-party impartial organization to conduct
veriﬁcation, and analyze and improve the company's energysaving and carbon-reducing measures by participating inworldwide evaluations such as CDP, with the long-term objectiveof "carbon neutrality in 2050 ."Continue to promote process optimization and water and energy
saving improvements, and organize "Effectiveness Review Meetings
for Water and Energy Conservation" on a regular basis to examinevarious response measures and implementation results.
Continue to put the "Four Major Carbon Reduction Strategies"
into action. For example, the Hsinkang Switchboard Plant's
1 , 500 KW solar power generation equipment received approvalin December 2022 and its renewable energy certiﬁcate is underapplication; NPC actively carries out circular economy projects
such as PET bottle recycling.
The evaluation of CDP Climate change questionnaire maintains"Leadership level(A-)"
Every year, publish the TCFD report.

●

●

●
●

●

Internal audit: Each plant's responsible
people undertake daily inspections, andthe management department carries out
inspections in line with the annual plan.
Entrusted inspection: Entrust qualiﬁed
manufacturers to execute inspectionsof emission pipelines and equipment
components according to the frequency anditems stated in the license.
Each plant conducts regular reviews andcontinues to formulate reduction initiatives.
Every plant conducts regular assessments andcontinues to develop reduction measures.
Assess whether the procedures that produce
hazardous air pollutants meet the announced
stricter standards.
Complete the training and certiﬁcation of
dedicated health risk personnel, and eachplant must have 21 dedicated personnel incompliance with regulations.

Applied to join "Science Based Targets Initiative(SBTi)"

After comparing the Company's and its
Taiwan subsidiaries' emissions of several air
pollutants in 2022 and 2021, the following
differences were found: Sulfur oxides (Sox)decreased by 220 . 92 tons, Nitrogen oxides● The evaluation result of the CDP Climate Change Questionnaire(Nox) decreased by 317. 55 tons, volatileis "Leadership Level (A-)".
organic compounds (VOC) decreased by● The 2021 TCFD report was published in 2022 .
574 . 87 tons, and total suspended particulate● The Science Based Target Initiative (SBTi) has been reviewed and (TSP) decreased by 14 . 08 tons.
approved in March 2023
Continue to carry out the "Four Major Carbon Reduction Strategies,"
such as the completion of the 1 , 500 KW solar power generationequipment at the Hsinkang Switchboard Plant and the expansionof PET bottle recycling and other businesses.

Shareholders, customers, supply chains, government agencies, environmental groups, experts and scholars, andlocal residents●

Stakeholder
engagement●●

In compliance with legal requirements, disclose management data in the annual report, 2022 sustainability report,or government disclosure information.
The 2021 TCFD report was published in 2022 .
In 2022 , the Chairman introduced the Company's implementation practices and highlights at the polyester
recycling product launch conference in person in July 2022 , in addition to disclosing NPC's sustainable practices
to the public in numerous magazines such as Business Today and Business Weekly.

2022 Sustainability
Report2022年永續報告書2069Nan Ya Plastics Corporation

Material topics

Energy management

Water management

Waste management

Circular economy
promotion

Corresponding
GRI Standards:

302 Energy

303 Water and efﬂuents

306 Waste-

Corresponding
SASB:

-

Water management

Hazardous waste
management-

Impactdescription

Policy andcommitment

Management
19
70

Prevention
andmitigation
actions[Impact][Impact][Impact]
1 . Increasing the
1 . Reducing water use and
1 . Reducing energy
amount of waste
recycling wastewater can reduce
consumption
resources canenvironmental responsibilities
can minimize
result in circularand external costs and enhanceenvironmental
economycorporate competitiveness.
responsibility andeffects, lower
external costs while
2 . Large water users will be subject
environmental
enhancing corporate
to government regulations andresponsibilities andcompetitiveness.
need to pay water consumption
external expenses,
fees, or if the quality of the
2 . Government
and enhancedischarged water does not meet
regulations demand
corporate
the discharge standards, it may
that when the intensity
competitiveness.
suffer the risk of ﬁnes and increaseof traditional energy
2 . Hazardous
operating costs, and in the worst
used in the process iswaste will leadcase, may interrupt operations.
too high, the company
to additional
should pay a fee ormanagement andpurchase renewable
monitoring costs,
energy, which raises
damaging brandpurchasing andvalue, getting
external costs.
sanctioned, and,in the worst-case,
operations may be
disrupted.

[Impact]
Investing in circular
economy and recycling
technology, as well
as expanding green
product categories, canlower costs, increase
recycling market
exposure, and enhance
corporate reputation.

With the goal of"carbon neutrality by
2050 ," NPC is actively
encouraging the useof renewable energy inaddition to analyzing
the construction ofsolar power generation
systems on the rooftopsof each plant.

Encourage water resource recycling
and reuse, reduce wastewater
discharge, and ensure thatdischarged water quality complies
with relevant laws and regulations
such as the Water Pollution Control
Act.

Conduct a rolling
waste reduction
evaluation to ensurethat there are noenvironmental ﬁnes
associated with waste
removal rules.

The Company aims
to achieve water
conservation, energy
conservation, waste
reduction, and othercircular economy
goals by adopting
various environmental
protection measures. We
will continue to actively
promote diverse circular
economy measuresin order to coexist
with environmental
conservation andeconomic development.

●

●

●

●

Encourage theinstallation of solar
power generation
systems on the roofsof each plant for
those that meet the
installation standards.
● Use AI technologies
to increaseenergy efﬁciency
and minimize
consumption.
● Pay close attention
to the development
trends of alternative
renewable energy
sources, such as
biomass energy, andintroduce them into
applications in atimely manner.
● Progressively promote
the installation of
ISO 50001 energy
management systems
in each plant site.

Following the source reduction andterminal management principles,
we ﬁrst reduce waste at the source,then strengthen resource reuse,
reduce the load on treatment
facilities, and ﬁnally treat it inwastewater treatment plants toensure regulatory compliance andminimize environmental impact.
● To improve the effectiveness ofwater resource recycling, the plants
are required to propose various
water-saving improvements andrainwater recycling projects.

Reduceenvironmental
impact andensure operational
legitimacy throughsource reduction
and resource
utilization.
● Internal audit:
The responsible
personnelof the plant
conducts regularinspections, andthe management
department
performs regular
audits.
● Flow tracking:Waste-generating
departments
should visit theentrusted cleanup
manufacturer.

Convene regularreview meetings forenergy conservation,
emission reduction, andcircular economy.
● Participate in the
Mutual Observation
Meetings andPresentations on
Improvement Cases
Selection of Excellent
Environmental
Management Plant of
Formosa Plastics Group.
● Participated in theCommendation
Conference of
Excellent Department
on Energy
Conservation, Carbon
Reduction and Circular
Economy Promotionin Mailiao Industrial
Complex.

Ongoing
Sustainable
Governance
Strategy

Green
Environment
Management
Promotion

Product
Value
Expansion

3

Creating a
Happy
and Safe
Workplace

The Pursuit of
Co-Prosperity
and a Better
HomelandAppendix

Material topics

Energy management

Water management

Waste management

Circular economy
promotion

Corresponding
GRI Standards:

302 Energy

303 Water and efﬂuents

306 Waste-

Corresponding
SASB:

-

Water management

Hazardous waste
management

-

●

●

Promote theinstallation of solar
power generation
systems on plant roofs
in Chiayi, Hsinkang,
Mailiao, and northernplants in stages.
Promote the use of
the digital energy
management
platform.

●●

Actual actions●

Performancetracking●

The 1 , 500 KW
power generating
equipment in
the Hsinkang
Switchboard Plant
received approval in
December 2022 , andits renewable energy
certiﬁcate is underapplication.
Manufacturing
plants such as Shulinsite 1 and Chiayisite 1 obtained theISO 50001 energy
management system
certiﬁcation.

Using the World Resources Institute(WRI) Water Resources Risk
Assessment and Available Water
Remaining Approach (AWARE),
verify each plant's yearly water
shortage risk, and improve various
water-saving response strategies forplants at higher risk.
To ensure that water quality
meets regulatory standards, theCompany built a "Continuous Water
Monitoring System, CWMS" and a"water pollution prevention andmanagement computer operating
system."●Entrust a veriﬁcation agency toprovide guidance for water footprint
inventory and reports veriﬁcation.

●

Continue to promote processoptimization and water and energy
saving improvements, and hold
"Water /Energy Conservation Review
Meetings" on a regular basis toreview the response measures andimplementation results.

●

Maintain "Leadership Level (A)"in the water security sector of"Carbon Disclosure Project (CDP)
Questionnaire

●

●

●

●

Internal audit: The
responsible factorystaff conducts
regular inspections
every day, andthe management
department
conducts
regular audits inaccordance withthe annual plan.
Flow tracking: The
waste generating
department
should visit theentrusted cleanup
manufacturer at
least once a year.

●

The discharged water fromeach plant meets water quality
inspection standards, and no
regulation violations.

The Company andits subsidiaries in
Taiwan generated
a total of 114 , 414 . 1
tons of waste, withapproximately
76 . 2 % recycled.

●

The Company and its subsidiaries in
Taiwan have completed 48 watersaving improvement projects,
totaling NT$ 90 million in investment
and an annual beneﬁt of NT$ 10
million.

A total of 261 waste
ﬂow direction
inspections werecompleted incompliance with
laws.

●

0 environmental
ﬁnes for violating
waste regulations in
2022 .

●

Convene review
meetings for energy
conservation, emission
reduction, and circular
economy every month.

●

Participate in the
Mutual Observation
Meetings andPresentations on
Improvement Cases
Selection of Excellent
Environmental
Management Plant of
Formosa Plastics Groupevery year.

●

Participated in theCommendation
Conference of
Excellent Department
on Energy
Conservation, Carbon
Reduction and Circular
Economy Promotionin Mailiao Industrial
Complex every year.

●

The Company and its
subsidiaries in Taiwan
completed 501 energysaving improvement
projects, saving 33 . 9
tons/hour of gas,
10 . 6 MWh/hour ofelectricity, 1 . 5 tons/hour of fuel, reducing
CO 2 emissions by
174 , 000 tons/year, andthe investing beneﬁts
were NT$ 580 million.

●

The Company and its
subsidiaries in Taiwan
completed 48 watersaving improvement
projects, saving waterby 2 , 162 tons/day andcreating beneﬁts by
NT$ 10 million per year.

Shareholders, customers, supply chains, government agencies, environmental groups, experts and scholars, andlocal residents●

Stakeholder
engagement

In compliance with legal requirements, disclose management data in the annual report, 2022 sustainability
report, or government disclosure information.
● The 2021 TCFD report was published in 2022 .
● In 2022 , the Chairman introduced the Company's implementation practices and highlights at the polyester
recycling product launch conference in person in July 2022 , in addition to disclosing NPC's sustainable
practices to the public in numerous magazines such as Business Today and Business Weekly.

2022 Sustainability
Report2022年永續報告書2071

Nan Ya Plastics Corporation

3.1 Commitment to Environmental Protection
The Company has always been equally committed to environmental protection
and industrial development, and also adheres to the goal of "zero accidents inenvironmental safety and health and ensuring perpetual business operation".
Besides pledging to protect the environment and maintain community safety,
all employees are required to enrich their professional skills and to treat safety,
health, and environmental protection as their priority. Everyone should lead byexample and regard safety, health, and environmental protection as a part oftheir responsibility. Please refer to the "Commitment to Environmental Protection"section on NPC's website for the Company's environmental protection policy.
Goals of NPC
Develop green andenvironmentallyfriendly products"Commitment to Environmental
Protection" on NPC's website

Related environmental cases in 2022●●

Bio-degradable PBAT resins: The polyester ﬁber division developed PBAT polymerization and modiﬁcation
technology that can be used in a variety of processed products. It applied for bio-degradable
certiﬁcation and is scheduled to be sale in 2023 .
Replace petrochemical raw materials with PLA (polylactic acid, corn, sugar cane, or their residues) in the
production of PBAT cling ﬁlm and label package ﬁlm. It has obtained DIN CERTCO and BPI certiﬁed in 2022 .

Development of recycled and renewable products●

Source reduction
and waste
reduction●●●

Introduction ofclean production

Strengthen
environmental
protection systems
management●

Fabric recycling: Conﬁrm that PET depolymerization conditions and bis-hydroxyethyl terephthalate(BHET)
puriﬁcation procedures meet quality requirements in the pilot factory.
PET bottle recycling: PET bottles are recycled and granulated to replace virgin polyester resins, andcarbon emissions can be reduced by 72 %. ( 23 qualiﬁed bottle ﬂake suppliers were developed, totaling
712 , 000 tons/year, with a 310 , 000 tons/year available supply).
MLCC (multilayer ceramic capacitors) release ﬁlm recycling: The recycling capacity is 600 tons permonth, and the release ﬁlms sold to domestic MLCC clients may be 100 % recycled. (For the launch andimplementation of new products, we have negotiated with well-known 3 C and home furnishing brands
and manufacturers in Taiwan, the United States, Europe, and Japan).
Implement energy conservation and carbon reduction through process operating conditions change,
model adjustment, AI and big data application, etc.
Implement low-carbon energy transition by replacing high-carbon energy (coal, heavy oil) with lowcarbon energy (natural gas, etc.)●

At present, the side reaction in the EO process will generate CO 2 . After stripping, the total amount is
380 , 000 tons, some of which are sold. It is planned to achieve complete recycling and zero emissions
through recycling, reuse and source reduction.

●

Inventory the computerization of every environmental protection operations, and promote theelectronization of management operations to strengthen the management●●

Implement internal carbon pricing operations
Strengthen environmental inspections

3.1.1 Safety, Health, and Environmental Protection Policy
The Company implements environmental protection policies and actively carried out measures such as "volume
reduction and waste reduction at source", "introduction of clean production", and "strengthening environmental
protection system management" to achieve the goal of zero pollution.
Volume Reduction and Waste Reduction at Source
Promote upstream management such as material saving, green
procurement, process waste reduction, pollution prevention, etc.

Zero Pollution

Introduction of Clean Production
Adopt modern advanced environmental protection technology
to improve production process and develop optimal production
process
Strengthening Environmental Protection Systems Management
The conﬁguration of safety, health, and environmental
management personnel, goal settings, standard operatingprocedures, introduction of environmental management systems,
and implementation of environmental audits

1972

Ongoing
Sustainable
Governance
Strategy

Green
Environment
Management
Promotion

Product
Value
Expansion

Creating a
Happy
and Safe
Workplace

3

The Pursuit of
Co-Prosperity
and a Better
HomelandAppendix

3.1.2 Organization and Promotion of Safety, Health, andEnvironmental Protection
Formosa Plastics Group established the "Energy Conservation, Carbon Reduction and Pollution Control Organization"in 2006 to integrate and promote water and energy conservation, as well as pollution prevention at each company.
In addition, the "Safety and Health Department" and "Resource Recycling Department" have also been set up at the
President's Ofﬁce to coordinate the safety, health, and environmental protection tasks throughout the Company. An
audit team has also been set up to audit and follow-up on improvements at the plants; meanwhile, safety, health,and environment management personnel have also been assigned to each division and production site to supervise
and coordinate various relevant tasks.

The Safety, Health, and Environment Organization
President
The President's Ofﬁce
Plastic, Chemical Engineering, Electronic,
and Polyester Business Groups

Resource Recycling
Department

Safety & Health
Department

Business
DivisionManager's Ofﬁce
Dedicated Safety, Health,and Environment Personnel

Wastewater Plant,
Incinerator

Audit Team

Production
Site

Safety, Health, andEnvironment Personnel

NPC has received the following certiﬁcates for environmental management systems:
Name of Certiﬁcate

Certiﬁed Plant/ ProductISO 14001 : 2015 Environmental
Management System

Shulin, Linkou, Kung San, Jinxing, Mailiao, Haifeng, Hsinkang, Chiayi, Renwu ,and
Linyuan sites

ISO 50001 Energy Management
SystemShulin plant I, Shulin plant II, Linkou plant II, Chiayi site, Hsinkang plant I, Engineering
plastics plant, Hsinkang CCL plant I, Hsingkang CCL plant III ,Renwu plant I, Renwu
plant II, Linyuan sites

Green Factory Label

Shulin plant II, Hsinkang CCL plant I, Hsinkang CCL plant III

Green Building Label

Shulin plant II, Hsinkang CCL plant I, Hsinkang CCL plant III, Hsinkang Cooper foil
plant IV(Silver Grade)

ISO 14046：2014 Water footprint

The Company

2022 Sustainability
Report2022年永續報告書2073

Nan Ya Plastics Corporation

3.1.3 Environmental Expenditure
Environmental Accounting
The total amount of environmental costs invested by the Company in 2022 was NT$ 1 . 592 billion, of which
pollution prevention and control expenses was approximately NT$ 0 . 964 billion, accounting for 60 . 55 % ofenvironmental costs.

NPC's Environmental Costs List（Unit: NT$ thousand）
Type

Item
Operational costs
Costs associated with supply chain
and customers

Management activity costs
Environmental Research and development costs
Costs
Social engagement costs

2021

2022

1 , 558 , 872

1 , 481 , 331

11 , 993

12 , 381

41 , 682

48 , 310

41

0

18 , 440

17 , 700

30

0Loss and remediation costs
Fees, taxes, energy taxes, and others
Total

49 , 399

32 , 067

1 , 680 , 457

1 , 591 , 789

Note: (1) Source: FPG's environmental accounting database(2) The "Operational costs" includes FPG's derivative costs from green procurement, product recycling and reproduction
costs, and expenses derived from product services for environmental protection

Environmental Costs Trend of NPC
Revenues

Unit: NT$ 100 million

2 , 174 . 61

Environmental Costs
16 . 80

1 , 691 . 84

2021

2022

2021

Unit: NT$ 100 million

15 . 92

2022

Source of revenues: The parent company only ﬁnancial statements of NPC over the years

Green Procurement
We prioritize purchases from products with environmental protection labels signifying that they are
made from renewable materials, recyclable, pose low pollution, and conserve energy, as well as Type II
environmentally preferable products. We also prefer to purchase products that add social value, reducesocial costs with the same or similar performance (e.g. energy saving label, water saving label, and EnergyStar label). According to statistics, in 2022 the green product procurement amounted to NT$ 155 . 9 million
and NT$ 6 . 27 million for NPC and subsidiaries in Taiwan, respectively.

19
74

Ongoing
Sustainable
Governance
Strategy

Product
Value
Expansion

Green
Environment
Management
Promotion

3

Creating a
Happy
and Safe
Workplace

The Pursuit of
Co-Prosperity
and a Better
HomelandAppendixCleaning Technology and Energy Investment
Aside from actively implementing process improvement on energy conservation and carbon reduction,
in response to the international carbon reduction trend and in line with the government's energy transition
policy, the Company actively seeks investment opportunities related to the energy transition, increases
the proportion of renewable energy and applies emerging technologies to reduce the impact of climatechange. In 2022 , the Company invested more than NT$ 2 billion and participated in a number of energy
transformation projects. The following are quick summaries of the important projects:
1 .In 2022 , NPC accommodated the FPG's plan and established the "Formosa Smart Energy Tech Corp." with
Formosa Plastics Corp., Formosa Chemicals & Fibre Corp., Formosa Petrochemical Corp., and Formosa
Biomedical Technology Corp. to expand FPG's development in the fields of new energy and energy
storage and seek transformation opportunities. The registered capital of Formosa Smart Energy Tech Corp.
is NT$ 7 billion, and the Board of Directors of NPC approved a NT$ 1 . 75 billion investment in 2022 .
2 .Conversion of coal-ﬁred boilers to gas-ﬁred boilers at utility plants (departments): On the road to carbon
neutrality, NPC accommodated the requirements of local governments and prioritized the conversionof utility plants from coal to gas. NPC invested approximately NT$ 360 million in 2022 to complete
improvement projects such as converting the Shulin and Chiayi utility plants from coal to gas andreplacing the Kun San site's 40 -ton oil-ﬁred boiler with a single gas-ﬁred boiler. It is estimated to reducecarbon emissions by 422 , 000 tons of CO 2 -e. And the transition schedule of each utility plant (ofﬁce) is asfollows:
2021●

Location: Converted from coal to gas in
Linkou utility plant.

●

Actual investment amount: approximately
NT$ 258 million.

●

Estimated annual carbon reduction beneﬁt:
approximately 148 , 000 tons of CO 2 e/year.

2022●

Location: Converted from coal to gas in Shulin and Chiayi
utility plant, and replaced Kun San site's 40 -ton oil-ﬁredboiler with a single gas-ﬁred boiler●

Actual investment amount: approximately NT$ 360 million.

●

Estimated annual carbon reduction beneﬁt: approximately
422 , 000 tons of CO 2 e/year.

In addition, NPC will keep an eye on domestic and overseas renewable energy development trends, aswell as new energy transformation strategies, and will introduce zero-carbon applications on time in orderto achieve the long-term goal of carbon neutrality by 2050 .
3 .Construction of renewable energy facilities: To meet the government's "large electricity consumer
clauses," NPC planned to install solar power generation equipment on the roofs of various plants. The
entire capacity is planned to reach 58 , 365 kW by 2030 , accounting for 18 . 2 % of Taipower's contracted
capacity. It is also much higher than the 10 % set by the government for large electricity consumers.

End of 2023●

Locations: Hsinkang site (rigid film plantI, switchboard plant); Chiayi site; Mailiao
compost plant●

Estimated installation capacity: 15 , 536 KW●

Completed projects: Rigid film plantI, 195 KW equipment registration wasapproved in July 2022 , and the renewableenergy certificate was obtained in
December; Switchboard plant, 1 , 500 KW
equipment, NT$ 70 million investment, theequipment registration was approvedin December 2022 , and the renewableenergy certiﬁcate application is in progress.

Follow-up promotion
projects●

Locations: Hsinkang site
(copper foil plant, etc.);
Mailiao and other plant
sites

●

Estimated installation
capacity: 42 , 829 KW

2022 Sustainability
Report2022年永續報告書2075

Nan Ya Plastics Corporation

4 .In order to create a lower carbon and environmentally friendly workplace, the following improvement
projects are promoted:
Replacement of traditional lamps with LED lamps projectIn accordance with FPG's strategy of "replacing traditional lamps with energy-saving lamps in each plant area,"
NPC invested NT$ 21 . 8 million in 2022 to update lighting equipment in the northern plant area. It is estimated tosave 120 kWh/hr of electricity and NT$ 1 , 092 , 000 in annual electricity costs. The projects are as follows:●●

Traditional street lights have been completely replaced with 453 LED street lights.

The lighting ﬁxtures in the administrative ofﬁce area have been completely replaced with 3 , 089 LED ﬂat panel
lights.

Project to prioritize the purchase of energy-efﬁcient automobiles as ofﬁcial vehicles
To promote low-carbon transportation policies, newly purchased passenger vehicles and vans are prioritized forenergy-saving models (gasoline-electric hybrid, pure electric power, and so on). Fuel-burning vehicles that are
more than 11 years old will be gradually replaced according to the timeline set by each unit. The estimated cost is
NT$ 2 , 160 , 000 , and it is expected to minimize carbon emissions by 3 . 83 tons per year.
Note: For the summary table of the Company's investment and implementation on energy conservation and water
conservation, please refer to "3.2.3 Management of Carbon Issues" and "3.4.3 Water Conservation Performance "respectively.

3.2 Climate Action and Strategy
3.2.1 Mitigation and Adaptation of Greenhouse Gas
Summary of Climate Strategy
Mitigation factors in climate

Effective Scope

●

●

CO 2
others●Greenhouse gas●

Greenhouse gas and●Business scope of NPC
Scope of value chain

Actions for mitigation and adaptation strategies
Four major carbon reduction strategies:

19
76

●

Low-carbon energy transformation:
Gas-ﬁred boilers and other equipment were built in place of the coal-ﬁred boilers that were previously used in utility
plants. Production plants also changed from using high-carbon energy like coal and heavy oil to low-carbon energy
like natural gas.

●

Energy conservation, carbon reduction, and circular economy:
Continue to promote process improvement, circular economy, AI and digital transformation to improve energy
efﬁciency and reduce waste generation.

●

Increase the use of renewable energy:
Solar power generation equipment with a total capacity of approximately 58 , 365 KW will be built on the roofs ofbuildings in each plant, accounting for 18 . 2 % of Taipower's contractual capacity, well exceeding the 10 % stipulatedby the government's requirements for large electricity customers.

●

Application of carbon capture technology: Expand electronic-grade and industrial-grade liquid CO 2 plants andrecover all CO 2 generated during production.

Ongoing
Sustainable
Governance
Strategy

Green
Environment
Management
Promotion

Product
Value
Expansion

3

Creating a
Happy
and Safe
Workplace

The Pursuit of
Co-Prosperity
and a Better
HomelandAppendix

In response to the global carbon reduction trend and the United Nations Sustainable Development Goals(SDGs) NO. 13 climate action, NPC has set "carbon neutrality by 2050 " as a long-term carbon reduction goal
and actively promotes four major carbon reduction strategies. The following are the key features and thecarbon reduction beneﬁts of each strategy:

Short-, Medium-, and Long-term Carbon Reduction Strategies of NPC
Short- term
2021 - 2025

Medium-term
2025 - 2030

Replace coil-ﬁred boilers with gas-ﬁred boilers in utility plants

Long-term
2030 - 2050
Duly replace natural gas withbio-based material

Low-carbon
energytransition

Replace high-carbon energy (such as coal, heavy oil) with lowcarbon energy (such as natural gas) in each production plant

Energy-saving
and carbonreduction
and circular
economyContinue to promote process improvement for energy conservation and carbon reduction

Increase
the use ofrenewableenergyContinue to grasp the development trend of hydrogen energy and other alternative energy sourcesand energy storage equipment, and appropriately introduce them after commercialization

Promote resource recycling and other projects based on 4 R circular economy principle
Promote AI and digital transformation, introduce intelligent management systems, and improve theutilization efﬁciency of energy and resources
Install solar power generationequipment on the roofs of eachplant for about 58 , 365 kW

Review and evaluate otherplant areas where solar power
generation equipment can beappliedContinue to evaluate and duly introduce applications of renewable energy such as water, wind andgeothermal
Expand the electronic-grade and industrial-grade liquid CO 2 plants.
Recycle all CO 2 generated in the process into resources

Application ofcarbon capture
technology

Evaluate for purchasing
renewable energy certiﬁcates

Introduce feasible technologies
in the industry such as carbon
capture from ﬂue gas toreduce CO 2 emissions

Carrying out research on forests and carbon sinks, negative emission technologies, carbon captureand storage, etc., with the industry and academia. The aforementioned practices will be introduced
in due course after commercialization

3.2.2 Identifying Risks and Opportunities Associated with
Climate Change
The Company's climate change management is to supervise the implementation of related operations
from top to bottom and to identify climate change risks and opportunities, set carbon reduction goals, andpromote carbon reduction strategies and other management actions in accordance with the framework of
Task Force on Climate-related Financial Disclosures (TCFD) from Financial Stability Board (FSB).
Besides, in order to make global investors understand the Company's achievements in addressing global
climate change issues, in addition to continuing to participate in the CDP climate change disclosure
questionnaire and striving to achieve a "leadership level", the Company also participates in the TCFD
advocacy, applies to join the "Science-Based Targets Initiative (SBTi)", and carries out other actions tostrengthen the Company's resilience to climate change.
Governance●Management
Strategies andAction Plan

The Board of Directors
discusses theimplementation of ESG,
which includes climaterelated issues at least
once a year
● The TCFD task force underthe "Risk Management
Promotion Team" is
responsible for identifying
climate change risks andopportunities, formulating
countermeasures, andreporting the results to
the Chairman

Strategies●

Set short-term, mediumterm, and long-term carbon
reduction goals● Promote" internal carbon
pricing" and othermanagement strategies● Identify the risks andopportunities of climate● Implement four major carbon
reduction strategies including"low-carbon energy transition"● Apply to participate in SBTi.

Indicators andTargets

Risk Management●

Establish theCompany's climate
risk identiﬁcation
process based on
the TCFD framework● Identify the ranking
of climate risks
according to
ISO 14001 Risk
Management
Process, andformulatecorresponding
solutions according
to the ranking●

Promote GHG
inventories basedon "ISO 14064 - 1
standard"● Draft climatechangemanagement
goals and review
the implementation
status according
to the scenario
analysis andScience Based
Targets2022 Sustainability
Report2022年永續報告書2077Nan Ya Plastics Corporation

Governance

Strategies●

2022
Implementation

Relatedinformation

In 2022 , the Sustainable
Development
Committee reported
on the Company's
2021 greenhouse gas
emissions and otherissues.
● Beginning in the fourth
quarter of 2022 , aquarterly "Environmental
Protection (E)" working
meeting was convened
to supervise various
environmental protection
measures such as climatechange. The Chairman
was informed of theimplementation results. In
2022 , one meeting was
held.

Indicators andTargets

Risk Management●

Make external commitments
and strengthen internalmanagement of carbon
reduction targets, with thelong-term goal of achievingcarbon neutrality by 2050 .
● Implement management
operations such as "internalcarbon pricing" andincorporate them into ERP
computer management.
● Continue to promote thefour major carbon reduction
strategies such as "low-carbon
energy transformation".
Furthermore, the registrationof 1 ,500 Kw solar power
generation equipment at the
Hsinkang switchboard plant
was approved in December
2022 , and the application forrenewable energy certiﬁcatesis in progress.
● The SBTi accepted NPC's
application in 2022 , and NPC
was approved in March 2023 .

●●The identiﬁed 16
TCFD risks andopportunities weredisclosed in the
Company's 2022
TCFD report.
● Make responses
to risks andopportunities.

Greenhouse gas
emissions (selfinventory) in 2022
decreased by
19 .7 % comparedwith 2007 .
● Invest
approximately NT$
460 million in energy
conservation andcarbon reduction
improvement
projects in 2022 .

Please refer to the Company's 2022 TCFD report.

Governance Body and Supervisory System
To cope with the global sustainability trend of carbon reduction, NPC established the "Risk Management
Promotion Team". The TCFD Task Force has been further established to handle the identiﬁcation of risks andopportunities associated with climate change, following which the "ESG Promotion Team" and "Energy
Saving and Carbon Reduction Promotion Team" discuss and establish the management actions of climatechange risk adjustment and enhancement of risk resilience, and periodically tracks the energy saving andcarbon reduction promotion of each business division and relevant unit. For implementation associatedwith climate change, in addition to reporting to the Chairman (the top management of the "ESG promotion
organization") timely, it is also reported to the Board of Directors by "ESG Promotion Organization" at least
once a year.

Climate Risk Identiﬁcation and Management Process
Step

1

Step

2

Step

3

Step

Plan & Do

19
78

4

Step

5

Check & Action

Backgroundinformationcollection

Risk and operational
assessment
boundaries

Risk and
operational
impact analysis

Set control
measuresand goals

Review
optimizations

TCFD Task Force willcollect informationand identify risks andopportunities.

Production sites in
Taiwan are usedas the basis for risk
evaluation andscenario planning.

Material risks are
determined basedon the severity ofﬁnancial impacts andthe risk occurrence
matrix diagram.

Propose emission
goals using Science
Based Targets (SBT)by using Nationally
Determined
Contribution (NDC)
as a possible
scenario.

Commission thirdparty institutions
for veriﬁcation andassurance, andparticipate in the
Carbon Disclosure
Project (CDP)"climate change"
questionnaire.

TCFD Task Forceregularly collects
information andidentiﬁes andevaluates risks
and opportunities
related to climatechange basedon the ISO 14001
risk identiﬁcation
procedures

Consider transition
risks and physicalrisks at production
sites throughout
Taiwan, analyze theparts of the value
chain subjected tothe impact, the risk
occurrence timeand frequency, anddescribe potential
ﬁnancial impacts andimpact amount.

Deﬁne the threelevels of risk using theseverity of ﬁnancial
impact and risk
occurrence matrix
diagram, prepare
response measures
to mitigate losses
from risks, andmonitor and manage
according to the ISO
14001 Environmental
Management
System.

●

NPC has set"carbon neutrality
by 2050 " as its
long-term carbon
reduction goal,
and its short- andmedium-term goals
include external
commitment
goals and internal
strengthening
management goals.
● In addition, in
response to the Paris
Climate Agreement,
NPC applied to join
SBTi in 2022 and wasapproved in March2023 .

●

Commission third-party
institution to conduct
GHG inventories
and green productcertiﬁcation● Participate in the
Carbon Disclosure
Project (CDP) "climatechange" questionnaire● Convene "water andenergy conservation
review meetings"
to review theeffectiveness of the
12 energy and water
conservation projects● Encourage employee
creativity and promote
IE improvement
proposals by offering
bonuses andincentives

Ongoing
Sustainable
Governance
Strategy

Product
Value
Expansion

Green
Environment
Management
Promotion

3

Creating a
Happy
and Safe
Workplace

The Pursuit of
Co-Prosperity
and a Better
HomelandAppendix

Analysis of Risk and Opportunities Associated with Climate Change
The risk and opportunity matrix takes into account factors such as the likelihood of occurrence and degreeof financial impact of each risk and opportunity, and divides the severity and likelihood of the financial
impact that risks and opportunities may have on NPC into five levels, each of which targets a different
ﬁnancial situation. Points are assigned based on the impact and likelihood of occurrence. After weighing
the financial impact and the likelihood of occurrence, the risk matrix is completed. The risk matrix is asfollows:

Financial Impact level

NT$ 10 billion ↑

5

10

15

20

25

NT$ 100 million ↑

3

6

9

12

15

NT$ 1 billion ↑NT$ 10 million ↑NT$ 1 million ↑421< 20 %

842

20 %- 50 %

12
6

16
8

3

50 %- 75 %4

75 %- 95 %15-25points：Material risk/
Material opportunity：
Plan corresponding
management solution inpriority, and track the execution
performance20

5-14points：Moderate risk/
Moderate opportunity
Presently, no action is adopted;
continue to monitor changes

105

1-4points：Low risk/ Low
opportunity
Considered as acceptable riskor temporarily ignored scope> 95 %

Likelihood of occurrence
According to the results of the above risk and opportunity matrix, the risks and opportunities are classiﬁed as follows:● Score of 1 – 4 is deﬁned as low risk: Level of risk is considered as acceptable risk or temporarily ignored scope.
● Score of 5 – 14 is deﬁned as moderate risk: No action is required at this time, and changes are continuously monitored.
● Score of 15 – 25 is defined as material risk: Planning of the corresponding management strategy is prioritized and theperformance outcome is tracked periodically
After the climate change risks and opportunities are assessed by each unit, the risks and opportunities are compiled into arisk-opportunity matrix correspondingly. The risk-opportunity matrix is as shown in the ﬁgure below:【Physical Risk】
6 Chronic – rising temperature●
7 Chronic –water resource shortage●
8 Acute - Extreme climate (heavy rainfall/●
ﬂooding)
9 Acute - Extreme climate (strong wind/●typhoon)10 Acute - Extreme climate (water shortage /●drought【Opportunity】
11 Energy/technology●
1 .Low-carbon energy transformation
2 .Carbon capture, storage and utilization
12 Resource efﬁciency- Circular economy,●
reducing costs
13 Resource efﬁciency--Improved energy and●resource usage efﬁciency
14 Product and service- Development of Energy●saving product15 Product and service- Expansion of recycled●
products
16 Market- Diverse business operation●

Financial Impacts Level【Transition Risk】
1 Policy/legal - Risk of collection of carbon tax●
2 Policy/legal - Risk of installation of renewable●energies
3 Policy/legal -Risks of levying water●
consumption charges
4 Market - Change of customer behavior●
5 Company reputation - Causing negative●
feedback

1 15

4 8 10596

7

2 13 14 16

11 12
3

Likelihood of occurrence● Material risk/ opportunity● Moderate risk/ opportunity● Low risk/ opportunity

Note: For more relevant content and response strategy, please referto the below summary table2022 Sustainability
Report2022年永續報告書2079Nan Ya Plastics Corporation

Financial Impacts of Risks

Downstream

Business

Type
of
Risk

Upstream

Category of
Risk(Transition/
Physical)Scope of
ImpactLevel of Impact(Proportion of
the Company's
revenue in 2022 )

0 . 28 %~0 . 83 %

0 . 09 %Policyand lawMarketCompany reputation

 





Response Strategy/Example" Climate Change
1 .Continue to promote the four main
Response Act " and thecarbon reduction strategies of "Low
EU's "CBAM" - Related
carbon energy transition".
expenses for complying 2 .Promote low-carbon manufacturingwith regulations (carbon
technologies
charges, carbon tax)
3 . A 15 , 536 KW solar power generation
system will be built on the roofs of someRenewable Energy
plants in Hsinkang, all plants in Chiayi, andDevelopment Act (large
the Mailiao composting facility before theelectricity consumption
end of 2023 , qualifying for the 8 % earlyusers clause)- Related
bird discount within three years.
expenses for complying
4 .Cross-plant achievement case sharing
with regulations(monetary substitution
for insufﬁcient renewableenergy)1 . FPG Mailiao Industrial Complex seawater
desalination plant project (constructedby FPCC).
2 . The Jinxing site uses discharged waterfrom the Taoyuan North District Water
Recycling Center as process coolingwater.
3 . Implement circular economy, promotewater-saving improvement projects
such as rainwater recycling, and use
AI technology to improve water use
efﬁciency.

0 . 001 %Levying water
consumption charges- Related expenses
for complying withregulations

0 . 85 %1 . Since 2018 , 8 green solutions have beenpromoted, including "energy efﬁciency".
Green product categories (ﬁrst andsecond-class environmental labels) were
speciﬁed in 2021 , with each business
unit having to develop and promote theitems.
Change of customer
2 . Actively create new uses for products
behavior-Impact ofand new materials that meet
reduced revenue fromenvironmental protection trends andfailing to satisfy customer
unique requirements in response to
demandmarket demand.
3 . Strive for active manufacturing andsales collaboration, as well as strategic
alliances with domestic and overseas
large manufacturers, such as developinga "sustainable recycling value chain" with
PCSC and ATUNAS.

0 . 01 %~0 . 04 %Actively participates in international energy
saving and carbon reduction advocacies,
and promotes carbon reduction measures
to increase the reputation. The promotion
case examples are as follows:
Impacted by the
1 . Participate in the international "Carbon
negative reputation,
Disclosure Project (CDP)" evaluation,ﬁnancial institutions may"TCFD Advocacy", "Science Based Target
increase the interest
initiative (SBTi)".
rates on loans, or may
2 . Strengthen information disclosure
even refuse to provide
and improve the Company's ESG
loans to industries of highperformance by referring to international
carbon emissions.
rating requirements such as MSCIESG (The MSCI ESG rating of NPC was
upgraded from BB to BBB in 2022 ).
3 . Participate in the sustainability-linked loan
project of Mizuho Bank and MUFG Bank.

Transition Risk

19
80



Description of Major
Potential Financial
ImpactOngoing
Sustainable
Governance
Strategy

Scope of
ImpactChronic-Change of environment 

Downstream

Business

Type
of
Risk

Upstream

Category of
Risk(Transition/
Physical)Green
Environment
Management
Promotion

Product
Value
Expansion

Description of Major
Potential Financial
Impact

The Pursuit of
Co-Prosperity
and a Better
HomelandAppendix

Response Strategy/Example

1 . Replace old air conditioning equipmentwith high-efﬁciency and energy-saving
models, and adopt green building
designs for new plants.
2 . Encourage production plants to get
ISO 50001 energy-saving management
system veriﬁcation, and a total of 14
production plants obtained certiﬁcatesby 2022 .
3 . Continue to promote circular economy
and apply AI technology to improve the
efﬁciency of water-saving and energysaving projects, such as optimizing theice water host system.

Acute - Extreme climate

0 . 05 %Rising temperature0 . 03 %1 . Conduct risk assessment andmanagement for water resources everyyear.
2 . Expand water sources and implement
various water-saving measures, such
Water resource shortageas desalination plants, recycled water,
rainwater and process water recycling,etc.
3 . Encourage the sharing and integration ofwater resources across production plants
and companies.

0 . 82 %Heavy rainfall/ﬂooding

Each production plant continues to workon ﬂood prevention measures, and thefollowing are signiﬁcant improvement
projects:
1 .Renwu site is installed with the ﬂood
control pumps, which the maintenance isperformed periodically.
2 .For Mailiao site, major desilting anddredging operation is performed annually.

0 . 27 %Strong wind/typhoon

1 . Form a typhoon prevention task force,
establish clear authority and labor
divisions, and perform emergency
response training to reduce the risks andharm caused by a strong typhoon.
2 . Prepare the plant's infrastructure, such as
fortifying doors and windows before thetyphoon arrives.
3 . Insure the Company's assets andequipment to mitigate the effects ofnatural disasters.

0 . 82 %Each plant continues to manage water
resources. The following are the primarymeasures for improvement:
1 . To mitigate the risk of plant shutdown
due to water shortage or drought, 2drought-resistant wells were drilled in the
Renwu site, increasing the water supply
by 2 , 300 M 3 /day.
Water shortage/drought 2 . Collaborate with the public sector
to develop the hyporheic ﬂow of
Donggang River and Gaoping River inorder to stabilize the water supply. The
Company also assesses trading water
for water in order to secure water rights
by developing the treatment of highammonia-nitrogen wastewater in the
Huliao River.

Physical Risk 

Level of Impact(Proportion of
the Company's
revenue in 2022 )3

Creating a
Happy
and Safe
Workplace2022 Sustainability
Report2022年永續報告書2081Nan Ya Plastics Corporation

Financial Impacts of Opportunities

Downstream

Business

Upstream

Category
Typeof Riskof(Transition/
Risk
Physical)Scope of
ImpactEnergy/technology Level of Impact(Proportion of
the Company's
revenue in 2022 )Response Strategy/Example

0 . 05 %Promoting the following
climate transformation
projects is expected tolower carbon charges orraise revenue, bringing up
opportunities for NPC:
● Low carbon energy
transformation● Carbon capture, storage
and utilization

1 . Promote the low-carbon conversion of equipment
to use gas, such as the utility plants changed fromcoal to gas in Linkou, Shulin, and Chiayi, and theconversion of 40 -ton oil-ﬁred boilers in the Kun San
site to gas-ﬁred boilers.
2 . Using carbon capture technology, convert all CO 2
produced by chemical processes into liquid CO 2 andsell it to downstream clients.
3 . Maintain a thorough understanding of thecommercialization status of technologies such as"ﬂue gas capture," "Algae carbon capture," and"hydrogen energy," and apply them in a timely
manner.
4 . Collaborate with industry, government, andacademia to develop and commercialize newcarbon-negative technology.

0 . 02 %Promote circular economy and 1 . Continue to promote the recycling and reuse of
reduce costs:
sub-quality products and PIR, such as sub-quality
In accordance with the
PET products, PP recycled resins, and MLCC release
4 R principles of circularﬁlms.
economy 2 . Increase the proportion of waste that is recycled① Reduce,and reused as a resource, such as ﬁberglass cloth② Reuse,scraps, sandblasting waste, and SMC waste glass③ Recycle, andﬁber.
④ Renew, NPC promotes raw 3 . Increase the use of regenerated materials andmaterial recycling and reuse,
reduce carbon emissions at the raw material stage.
raises the proportion of wastethat becomes resources,
and progressively establishes
a sustainable and circularvalue chain.

0 . 38 %1 . Use modern technologies such as AI to reduce raw
material waste and material costs.
Efﬁciency improvement of
2 . Promote energy-saving improvement projects: Inenergy and resource use:
2022 , 412 energy-saving improvement projects
To actively reduce carbon
were completed, reducing CO 2 emissions byemissions, promote different
approximately 126 , 830 tons per year.
water-saving and energy3 . Promote water-saving improvement projects: In
saving improvement projects
2022 , the estimated water-saving beneﬁt is 1 , 327
such as AI applications andtons/day.
the introduction of advanced 4 . Promote technology improvement in the productionenergy-saving equipment.
process and entirely replace traditional street lamps
and ofﬁce area lighting ﬁxtures in the northern plantarea with LED lamps.

0 . 34 %Research and developmentof energy-saving products:
In recent years, the world
has been affected byextreme weather events,
temperatures havecontinued to rise, andconsumer demand for lowcarbon and energy-saving
products has increased,
resulting in potential business
opportunities for energysaving and heat-insulatingproducts.

2 . 75 %Recycling productexpansion: To expand the
product life cycle, making iteasier to reuse, repair, andrecycle, and use recycledmaterials to replace primary
raw materials as much as
possible. Governments
around the world have
set up recycling targets
for beverage containers.
Simultaneously, biginternational brands such
as NIKE, IKEA, and HP also
set target schedules for theusage of recycled materials.

Energy / technology

Transition Opportunity

Description of Major Potential
Financial Impact 
Product / market

 

19
82

Numerous green products have been developed, andresearch and development are now being consistently
invested in to support the transition of new green business
opportunities. The following are the primary cases:
1 .Cooler Paint (heat insulation paint): The productwhich is veriﬁed by National Taiwan University of
Science and Technology, is able to save 31 . 8 %energy consumption of air conditioning in summer.
2 .Energy saving airtight window: Low thermal
conductivity can save up to 20 % on energy
consumption.
3 .ICE COOL (heat insulation paper): Use non-toxic
material, and equipped with the characteristics
of antiexplosion, high light transmittance andhigh IR, UV isolation, capable of reducing energy
consumption.
1 . Continue to promote PCR products, including PET
products, environmentally friendly ﬁlm products,
APET tape products, fabric recycling, etc.
2 . Actively seek for recycled material sources toprovide a steady supply of raw resources.
3 . Develop modiﬁed polyester resins and singlematerial packaging ﬁlms to aid in subsequent
recycling.
4 . Spread the word about the Nanya SAYA recycling
products brand.

Ongoing
Sustainable
Governance
Strategy

Scope of
ImpactDownstream

Business

Upstream

Category
Typeof Riskof(Transition/
Risk
Physical)

Product
Value
Expansion

MarketTransition Opportunity

  

Green
Environment
Management
Promotion

3

Creating a
Happy
and Safe
Workplace

The Pursuit of
Co-Prosperity
and a Better
HomelandAppendix

Level of Impact(Proportion of
the Company's
revenue in 2022 )Description of Major
Potential Financial Impact

Response Strategy/Example

0 . 37 %Diverse business operationMany countries around theworld have formulated thetimetable for the ban on fuelsale from 2020 ~ 2040 . In thenext 20 years, consumers inthese countries will have no
choice but to buy electricvehicles or hydrogen fuelcell vehicles, which will drive
the rapid development in
the EV market.

Actively engage in the research anddevelopment of electric vehicleindustry related products. For instance,
copper foils are initially used inelectrical and electronic industries. With
the continuous development of copper
foils with high heat resistance and highstrength, some of the copper foils canbe further used as the electrodes of thelithium batteries of electric vehicles inrecent years. Accordingly, the copper
foil production line is expanded.

Scenario Analysis
NPC simulates future scenarios based on the climate change models RCP 2 . 6 , RCP 4 . 5 , RCP 6 . 0 , and
RCP 8 . 5 . And refer to the following information: The IEA's Net Zero Emissions by 2050 Scenario, Nationally
Determined Contribution targets (NDC), and Taiwan's "Intended Nationally Determined Contribution (INDC)"
report, which aims to achieve a 50 % reduction below the business as usual (BUA) GHG emission level by
2030 , and announces the National net-zero emissions pathway by 2050 . Using the electricity generation
structure and the development of various national departments from 2030 to 2050 as a basis for analysis, thepotential impact on the Company's market and technology, reputation, ﬁnances, and operations, whentemperature rise, rainfall, ﬂooding, and drought occur between 2020 and 2050 , are estimated.
BAU scenario

Positive mitigation scenario

Description of
Scenario

RCP 8 . 5

RCP 2 . 6
Net Zero Emissions by 2050 Scenario (NZE)
Net-zero emissions pathway by 2050

Analysis Results

The lower the control of greenhouse gas
emissions, the larger the climate change
and the frequency and severity of ﬂoods
and droughts. As a result, it is expectedthat temperatures will rise, rainfall will
increase, and ﬂooding and drought
danger will grow between 2020 and 2050 .

The movement toward net-zero carbon emissions has
raised awareness of the need to reduce greenhousegas emissions and slowed down climate change. The
Company examines the potential impacts that thecompany might experience in the future on the market,
technology, reputation, ﬁnances, operations, etc. under
the scenario of RCP 2 . 6 and the 2050 net-zero emission
pathway based on the evaluation of the electricity
generation structure and the development of various
national departments from 2030 to 2050 .

Risk

Floods and droughts will occur more
frequently as a result of exacerbatedclimate change, increasing operating
costs under low-level greenhouse gas
emission reduction scenarios.

In order to effectively reduce greenhouse gas emissions,the Company must take into account its future
operational expansion, engage in different carbonreduction strategies, and weigh the potential ﬁnancial
effects of a low-carbon transformation.

Action Plan

NPC develops four main carbon reduction strategies and offers related action plans for risks invarious scenarios. Following are some examples of relevant action plans for each scenario:
Action Plan for Physical Risk:( 1 ) Establish early warning and response mechanisms for water shortages, assess the duration andextent of the drought's impacts, and develop a comprehensive plan for dealing with water
shortages.
( 2 ) Set up annual water consumption reduction goals and periodically assess the efﬁcacy of water
use in order to lessen reliance on water.
( 3 ) Go over the risk of ﬂooding brought on by rising sea levels, evaluate the likelihood that Taiwan's
production plants may ﬂood as a result of rising sea levels, and then create backup plans.
( 4 ) Follow the circular economy concept, recycle rainwater, wastewater, process water, andlessen the effects of ﬂoods and droughts.
Action Plan for Transition Risk:( 1 ) Carry out energy conservation and carbon reduction by modiﬁcations to model assumptions,uses of AI and big data, etc.
( 2 ) Developing products with minimal carbon footprints, using recycled materials, and alternative
raw resources, and investing in new market development to gain market share and boost sales
for the business.
( 3 ) Build solar power generating equipment along with applications for carbon capture
technology.

2022 Sustainability
Report2022年永續報告書2083Nan Ya Plastics Corporation

3.2.3 Management of Carbon Issues
Carbon Reduction Roadmap
NPC has set up three carbon reduction targets: "external commitment," "internal stricter management,"and "SBTi approval" in response to various objectives. The long-term goal of "carbon neutrality by 2050 " canultimately be realized as NPC will pursue the strictest reduction standards as the goal. This will allow each phaseof carbon reduction paths to fulﬁll the aforementioned targets. Following is the explanation of each indicator:

External commitment target: For "Scope 1 + Scope 2 ,"use 2007 as the base year ( 6 . 95 million tons of CO 2 e),
a 20 % decrease in 2025 ( 5 . 56 million tons of CO 2 e), a
35 % reduction in 2030 ( 4 . 52 million tons of CO 2 e), andachieve carbon neutrality by 2050 .

Internal stricter management target: For "Scope 1 +Scope 2 ," use 2020 as the base year ( 5 . 92 million tonsof CO 2 e), a 12 . 5 % decrease in 2025 ( 5 . 18 million tonsof CO 2 e), a 25 % reduction in 2030 ( 4 . 44 million tons of
CO 2 e), and achieve carbon neutrality by 2050 .

NPC Carbon Reduction RoadmapExternal commitment target

NPC Carbon Reduction Roadmap- Internal
stricter management target

CO2e(10,000 tons)

Base year（2007）

800

695

700
600

CO2e(10,000 tons)
LongShort-term Medium- term goal
goal
term goal (carbon（-20％） （-35％） neutrality)

659

-139
（-20%）

629

607

592

500

-243
（-35%）

556

800

452

600

-695
（-100%）

300

200

200

100

100
0
2010

2015

2020

659
607

Base year（2020）
629

2025

2030

2050

0

LongShort-term Medium- term goal
term goal (carbon
goal（-12.5%） （-25%） neutrality)-103（-14.8%）

592

400

300

2007

695

700

500

400

0
2005

Peak value（2007）-148
518（-25%）-74（-12.5%）444-592（-100%）

0
2005

2007

2010

2015

2020

2025

2030

2050

SBTi approval target: The targets were set up in compliance with SBTi's specifications, and be accepted in March2023 . The targets are as follows: "Scope 1 + Scope 2 " with 2021 as the base year ( 6 . 14 million tons of CO 2 e) anda reduction of 15 % in 2027 ( 5 . 22 million tons of CO 2 e); "Scope 3 " with 2021 as the base year ( 23 . 79 million tons of
CO 2 e) and a reduction of 7 . 4 % in 2027 ( 22 . 03 million tons of CO 2 e).
Note: According to veriﬁcation, the Company emitted 14.87 million tons of Scope 3 in 2021. The SBT group afterward asked theCompany to add the emissions of "investment," therefore the emissions were adjusted to 23.79 million tons.

Greenhouse Gas Emissions Management
In compliance with ISO 14064 - 1 , NPC entrusts a third party to carry out inspections and veriﬁcations of its
yearly greenhouse gas emissions. Scope 1 emissions are estimated to be 2 . 5 million tons of CO 2 e, Scope 2
emissions are estimated to be 3 . 64 million tons of CO 2 e, and Scope 3 emissions are estimated to be 14 . 87
million tons of CO 2 e, according to the results of the 2021 GHG emission verification. The GHG emission
veriﬁcation for 2022 is now being veriﬁed, and the veriﬁcation statement is expected to be obtained in thethird quarter of 2023 .
Additionally, the Company's revenue in 2021 was NT$ 217 . 5 billion, with 6 . 14 million tons of CO 2 e in total
emissions, an increase of 3 . 62 % from the previous year. The intensity of greenhouse gas emissions declinedby 31 . 67 % from 4 . 13 kilotons of CO 2 e/ NT$ 100 million in 2020 to 2 . 82 kilotons of CO 2 e/ NT$ 100 million in
2021 (the revenue was NT$ 143 . 4 billion in 2020 ).

1984

Ongoing
Sustainable
Governance
Strategy

Green
Environment
Management
Promotion

Product
Value
Expansion

Creating a
Happy
and Safe
Workplace

3

The Pursuit of
Co-Prosperity
and a Better
HomelandAppendix

Greenhouse Gas Emission Status
NPC
7 , 000 , 000
6 , 000 , 000

6 , 210 , 275

3 , 000 , 000

4 . 135 , 945 , 025

6 , 135 , 204

3 . 843 . 29

4.1
3.7
3.5

5 , 921 , 048

3.3
3.1

2 , 000 , 000

2.9

1 , 000 , 000
0
2018
2019
Total emissions(tons of CO 2 e)

2 . 82

169 , 175

144 , 782

2.7

2.5
2020
2021
GHG emissions intensity(kilotons of CO 2 e/NT$ 100 million)

Scope 1
3 , 000 , 000

1 , 020 , 000
1 , 000 , 000
980 , 000
960 , 000
940 , 000
920 , 000
900 , 000
880 , 000
860 , 000
840 , 000
820 , 000

3.9

5 , 000 , 000
4 , 000 , 000

Subsidiaries in Taiwan
4.3

111 , 069

5 , 000 , 000
4 , 500 , 000
4 , 000 , 000
3 , 500 , 000
3 , 000 , 000
2 , 500 , 000
2 , 000 , 000
1 , 500 , 000
1 , 000 , 000
500 , 0000

2 , 645 , 521

2 , 661 , 454

2018

2019

2 , 602 , 355

2 , 499 , 081

2020

2021

500 , 000
0

NPC

Subsidiaries in Taiwan

2.5
2.0

1 . 87925 , 796

1.5
1.0
0.5
0.0

2020
2021
GHG emissions intensity(kilotons of CO 2 e/NT$ 100 million)

Scope 2

151 , 387

3.0

995 , 411

2 . 26985 , 231

2018
2019
Total emissions(tons of CO 2 e)

2 , 000 , 000

1 , 000 , 000

992 , 296

2 . 72

Unit：tons of CO2e

2 , 500 , 000

1 , 500 , 000

2 . 71

823 , 121

3 , 564 , 754

844 , 024

840 , 449

814 , 727

3 , 283 , 571

2018

Unit：tons of CO2e3 , 318 , 694

3 , 636 , 122

2020

2021

2019
NPC

Subsidiaries in Taiwan

Note: (1)Scope 1 refers to direct GHG emissions, and Scope 2 refers to indirect GHG emissions. The inventory includes thefollowing types: carbon dioxide, methane, nitrous oxide, HFCs, perﬂuorocarbons, sulfur hexaﬂuoride.
(2)The inventory veriﬁcation data of SGS, BSI, Alfano, and Bureau Veritas(Taiwan) are used from 2019 to 2021. In addition,
the emissions for 2022 are still being veriﬁed, and the veriﬁcation statement is expected to be obtained in the third
quarter of 2023.
(3)The GWP released in the IPCC Fourth Assessment Report (2007) served as the foundation for calculating the carbon
dioxide equivalent of emissions in 2016 (inclusive) and following years in compliance with EPA regulations.
(4)The emission coefﬁcients for Scope 1 are calculated based on the "Environmental Protection Agency's Greenhouse Gas
Emission Coefﬁcient Management Table" (Version 6.0.3; version 6.0.4 was adopted in 2019); the emission coefﬁcientsfor Scope 2 are calculated using the Taipower's electricity coefﬁcients published by the Energy Bureau of the Ministryof Economic Affairs, as well as the electricity coefﬁcients and gas coefﬁcients that were veriﬁed by SGS in FPG's utility
plants.

Energy Management
The following table shows the total energy consumption of NPC and its subsidiaries in Taiwan in 2021 . Basedon calculations using the Company's revenue of NT$ 217 . 5 billion in 2021 , the Company's energy intensity isroughly 217 kilojoules/ NT$, and scopes 1 and 2 's greenhouse gas emission intensity is 2 . 82 kilotons of CO 2 e /NT$ 100 million.
Major Emission Sources and Energy Consumption in 2021
NPC
Emission source

Consumption(A)Heating value (B)Coal

639 , 085 tons

26 . 78 GJ/tons

Fuel oil

77 , 935 kl

35 . 72 GJ/kl

Fuel gas

71 , 356 tons

54 . 04 GJ/tons

FPG internally purchased gas

3 , 971 , 935 tons

2 . 83 GJ/tons

FPG internally purchased
electricity

2 , 530 , 833 MWh

3 . 60 GJ/MWh

Externally purchased
electricity

880 , 243 MWh

3 . 60 GJ/MWh

Total

Total energy
consumption (A)*(B)

1 . 71 × 107 GJ
2 . 78 × 106 GJ
3 . 86 × 10 GJ
61 . 12 × 10 GJ
7

9 . 11 × 106 GJ

3 . 17 × 106 GJ
4 . 73 × 10 GJ
7Proportion of CO 2 eemissions24 . 6 %3.6%
3.1%
17 . 8 %34 . 2 %7.3%
90 . 6 %2022 Sustainability
Report2022年永續報告書2085

Nan Ya Plastics Corporation

Major Emission Sources and Energy Consumption in 2021
Subsidiaries in Taiwan
Emission source

Consumption(A)Total energy
consumption (A)*(B)Heating value (B)3 . 91 × 105 GJ

Proportion of CO 2 eemissions

Fuel oil

10 , 154 kl

38 . 48 GJ/kl

Fuel gas

9 , 274 tons

53 . 52 GJ/tons

FPG internallypurchased gas

430 , 878 tons

2 . 83 GJ/tons

1 . 22 × 106 GJ

11 . 7 %FPG internallypurchased
electricity

792 , 261 MWh

3 . 60 GJ/MWh

2 . 85 × 106 GJ

73 . 1 %4 . 96 × 106 GJ

90 . 2 %3.1%

4 . 96 × 105 GJ

Total

2.3%

Note: (1)The data source of the table is the 2021 Greenhouse Gas Emission Inventory of each Company (veriﬁed data).
(2)The heating value of each emission source is calculated as an average value.

Energy Management Improvement Incentive Program
Incentive program for
improvement projects●

Encourage personal creativity

Implementing an incentive program for
improvement projects; NT$ 300 ~NT$ 20 , 000
bonus will be given based on merits.

●

Presentation of excellent
improvement projects

Implementing an incentive program for
proposing IE improvements; NT$ 300 ~NT$ 20 , 000
bonus and administrative incentives will begiven based on merits.

Evaluations of outstanding
environmentally friendly suppliers●

Present outstanding improvement projects eachyear for internal evaluations.

●

Organize ceremonies to applaud outstanding
environmental protection and energy/water
conservation projects.

●

Encourage and give incentives for participationin government-organized environmental
protection, water and energy conservation
evaluations, and competitions for businesses
across all divisions and plants.

Energy Conservation Performance Management
Since 2020 , the Company has complied with and tracked annual energy consumption in accordancewith the recommendations of the Sustainability Accounting Standards Board (SASB), which are consideredindustry standards and assist in achieving energy-saving targets.

Total energy
consumption (GJ)

Energy Consumption of
NPC in 2021
Energy Consumption ofsubsidiaries in Taiwan in 2021

19
86

47 , 259 , 941

4 , 956 , 405

Proportion of electric
consumption of thegrid (%)

Total amount of selfgenerated energy (GJ)

71 . 84 , 831 , 885

100

0Ongoing
Sustainable
Governance
Strategy

Product
Value
Expansion

Green
Environment
Management
Promotion

Creating a
Happy
and Safe
Workplace

3

The Pursuit of
Co-Prosperity
and a Better
HomelandAppendix

In recent years, NPC has kept up its implementation of the circular economy concept and promotion of
the integration of resources across plants and companies, leading to a notable increase in total energy
efficiency. A total of 501 energy-saving improvement cases were completed by the Company and its
subsidiaries in Taiwan in 2022 , with an investment of NT$ 920 million and annual beneﬁts of about NT$ 580
million. A 174 , 000 tons of CO 2 e/year reduction in greenhouse gas emissions is expected. In addition, 357
cases are still in progress, with an estimated investment of NT$ 2 . 59 billion. When ﬁnished, they will be able toreduce annual CO 2 emissions by about 192 , 000 tons.

Energy Conservation Practices of NPC
Year

1999 ~ 2020（A）

2021（B）

2022（C）

In progress
（D）

Total
（E=A+B+C+D）

Improved cases

4 , 580

405

412

342

5 , 739

Gas saved (ton/hour)

652 . 860 . 123 . 347 . 9784 . 1

Electricity saved(MWh/hour)

74 . 5

5.0

9.3

11 . 3100 . 1

Fuel saved (ton/hour)

25 . 310 . 71.2

0.8

38 . 0CO 2 e reduction( 10 , 000 tons/
year)

225 . 235 . 012 . 6

17 . 7290 . 5Investment
Amount (NT $ 100
million)57 . 27.4

7.0

25 . 296 . 8Investment
beneﬁt (NT $ 100
million/year)

59 . 2

5.4

4.6

6.0

75 . 2

Item

Data Source:FPG Energy and Water Conservation Improvement Database; in-progress projects are counted as ongoing
improvement cases in January 2023 statistics.

Energy Conservation Practices of the Subsidiaries in Taiwan
Year1999 ~ 2020（A）

2021（B）

2022（C）

In progress
（D）

Total
（E=A+B+C+D）

Improved cases

937

53

89

15

1 , 094

Gas saved (ton/hour)

118 . 6

5.0

10 . 51.8

135 . 9

Electricity saved(MWh/hour)

8.0

1.2

1.3

0.9

11 . 4

Fuel saved (ton/
hour)

2.6

0.0

0.3

0.1

3.0

CO 2 e reduction( 10 , 000 tons/
year)

39 . 7

1.9

4.8

1.6

48 . 0

Amount invested(NT $ 100 million)

21 . 0

0.6

2.2

0.7

24 . 5Investment
beneﬁt (NT $ 100
million/year)

10 . 6

0.5

1.3

0.4

12 . 8Item

Data Source:FPG Energy and Water Conservation Improvement Database; in-progress projects are counted as ongoing
improvement cases in January 2023 statistics.

2022 Sustainability
Report2022年永續報告書2087Nan Ya Plastics Corporation

Examples of signiﬁcant energy efﬁciency improvements of NPC in 2022
Project 1

GHG Reduction Performance

24 , 223 tons of CO e/year

Replace 40 -ton gas-ﬁred boiler with a natural gas burnerin the second utility area to save energy.

2Project 2
Gas savings improvement at the EG- 2 plant's evaporation
tower, including a reduction of 21 K gas consumed by
the evaporation tower reboiler as well as secondary gas
production in the evaporation tower.
Project 3
Change the design of the circulating water heatexchanger in the EG plant from plate to wound tube toboost efﬁciency.

GHG Reduction Performance

17 , 581 tons of CO e/year
2

GHG Reduction Performance

11 , 051 tons of CO e/year
2【Case Study- NPC's Mailiao PA Plant was awarded the "EnergySaving Benchmark Award-Silver Award"】
1 .Low-carbon energy is substituted as the fuel in the heating medium boiler:
Low-carbon energy has replaced the light-cracked fuel oil (PFO) that was previously used in the two
sets of heating medium boilers at NPC's Mailiao PA Plant. Since Oleﬁn Plant I of FPCC has a surplus ofmethane gas, PFO was switched out for methane gas as the fuel to lower greenhouse gas emissions
and save energy. Methane gas is employed as the primary fuel for heating medium boilers, and theburner type is modified to a dual-fuel system. Because methane gas can be totally burnt, energy
efﬁciency and carbon emissions can be improved.
The energy-saving beneﬁts
Fuel saved

694 kl/year

CO 2 reduced

4 , 183 tons/year

Improvement beneﬁts

NT$ 14 , 330 , 000 /year

Low-carbon energy is substituted as the fuel in the heating medium boiler

2 .The TRAY plate of the dehydration tower is replaced with a high-efﬁciency model to reduce gas usage:●

Maleic acid aqueous solution is separated via batch processing in the C 301 / 901 dehydration tower
so that maleic anhydride can be isolated from water and light boiling matter. In order to increase
the mass transfer area, improve separation efﬁciency, and reduce the amount of gas consumed
by the reboiler, a new high-efﬁciency dehydration tower plate was installed in place of the original
LOTERIOS TRAY plates.
● The mass transfer area can be enhanced by 4 % by replacing the dehydration tower trays
with SULZER UFM high-efficiency TRAY plates. The total amount of 16 K gas consumed after the
improvement is decreased by 1 . 9 tons/hour, and once the separation efficiency is raised, theamount of time it takes for each batch to operate may be reduced, leading to an increase inproduction.
The energy-saving beneﬁts
Gas saved

CO 2 reduced

Improvement beneﬁts

15 , 200 tons/year

4 , 656 tons/year

NT$ 15 , 410 , 000 /year

The TRAY plate of the dehydration tower is replaced with a high-efﬁciency model to reduce gas usage

19
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Strategy

Green
Environment
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Promotion

Product
Value
Expansion

3

Creating a
Happy
and Safe
Workplace

The Pursuit of
Co-Prosperity
and a Better
HomelandAppendix

Gas and electricity consumption per unit product
NPC aims to reduce energy consumption per unit product by 3 % compared with the previous
year. In 2022 , the Company's gas consumption per unit product was 0 . 594 tons/ton, an increase of
20 . 7 % compared with 2021 , and electricity consumption per unit product was 409 . 1 kWh/ton, an
increase of 23 . 5 % compared with 2021 . This was mainly due to the decrease in capacity utilizationcompared with the previous year.

Trends of Gas and electricity consumption per unit product in 2021~2022
Gas consumption（Unit: ton/ton）
0.6
0.5

0 . 594

0 . 492

NPC

Electricity consumption（Unit: kWh/ton）
500
400

0.4

409 . 1331 . 3

Subsidiaries in Taiwan

Gas consumption

Electricity consumption（Unit: ton/ton）
0.5
0.4

0 . 370

0 . 450（Unit: kWh/ton）
800
700

300

0.3

500

0.2

200

0.2

300

100

0.1

0

0.0

0.0
2021

2022

2021

2022

764 . 9

600

0.3

0.1

679 . 0

400
200
100
2021

2022

0

2021

2022

Note: The Company's disclosure scope was initially limited to the Mailiao site, but starting in 2021, it has been expanded
to include all Taiwan plant sites.

3.3 Air Pollution Management
3.3.1 Air Pollution Prevention
Air Pollution Prevention
and Reduction
To effectively gather and deal
with the exhaust gas, NPC has
installed prevention equipmentin accordance with the processcharacteristics. The results of routine
inspections of each emission
pipeline are all lower than thelegal limits for pollutant emissions.
In 2022 , the Company proceeded
to evaluate and upgrade current
equipment. In 2022 , significant
promotion cases include: The new
gas-ﬁred boiler at Linkou Utility Plant
is now operational (The coal-fired
boiler was formally deactivatedin February 2021 ). In response to
New Taipei City's policy of a coalfree city, Shulin Utility Plant installed
50 -ton gas boilers in 2021 , and thecoal-ﬁred boilers were formally shut
down by the end of 2022 .

50-ton gas-ﬁred boiler

Internal Photo of the plantAppearance of gas-ﬁred boilers in
Linkou site

Appearance of gas-ﬁred boilers inShulin site2022 Sustainability
Report2022年永續報告書2089

Nan Ya Plastics Corporation

NPC keep performing ongoing rolling reviews of the performance of the control equipment and fuel types.
The following are the major recent improvement cases:●

After switching the fuel of the coal-fired boiler and thermal oxidizer in the Mailiao epoxy resin plant tomethane gas in June 2022 , the emission concentration reduction rate exceeded 70 %:Pollutions

Before improvement

After improvement

Reduction rate

SOx

＞ 50 ppm< 5 ppm> 90 %< 30 ppm> 70 %< 5 ppm> 80 %＞ 100 ppm

NOx

＞ 30 ppm

TSP●

The operation effectiveness of the selective catalytic reduction equipment (SCR) was increased after Jinxing
Utility Plant switched to high-efﬁciency catalysts. With a 46 % reduction rate, the nitrogen oxide emission
concentration was lowered from 75 to 40 ppm.

Statistics of Air Pollution Emissions
Sox
600

513 . 92478 . 48

1 , 200
1 , 000

500
400

293 . 00

292 . 98300

35 . 44
NPC
2021

725 . 52636 . 48200

0 . 02

Subsidiaries
in Taiwan

Total

NPC

Subsidiaries
in Taiwan
2022

VOC

Total

0

75 . 66
NPC

Subsidiaries
in Taiwan
2021

70
60

1 , 585 . 65
1 , 666 . 11

1 , 500

89 . 04
Total

NPC

Subsidiaries
in Taiwan
2022

TSP

Unit: ton

2 , 240 . 98

2 , 141 . 22

2 , 000

Total

Unit: ton

62 . 59

60 . 00

48 . 51

47 . 1450
40
30

1 , 000

20

500
0

800

400

100

2 , 500

Unit: ton

1 , 043 . 07

967 . 41

600

200

0

NOx

Unit: ton

NPC

Subsidiaries
in Taiwan
2021

1080 . 46

99 . 76
Total

NPC

Subsidiaries
in Taiwan
2022

Total

0

2 . 59NPC

Subsidiaries
in Taiwan
2021

1 . 37
Total

NPC

Subsidiaries
in Taiwan

Total

2022

Data Source: Stationary Pollution Source Air Pollution Fee and Emissions Reporting Management System of the Environmental
Protection Administration

19
90

Ongoing
Sustainable
Governance
Strategy

Product
Value
Expansion

Green
Environment
Management
Promotion

3

Creating a
Happy
and Safe
Workplace

The Pursuit of
Co-Prosperity
and a Better
HomelandAppendix

VOC Reduction and Odor Control
To present VOC effusion and to reduce odor complaints from the public, the Company has undertaken thefollowing practices while regularly assigning dedicated personnel to do routine inspections around the plantsite:

Process
optimization

Use raw materials that do not contain VOCs and reduce the number ofcomponents. (when using threaded tubes with a diameter of less than
2 inches, switch to cold welding; and to enhance the tightness of theconnection between the instrument and the equipment, mechanical tubing
is used instead of the capillary tubes.)

Management
improvement

To remind staff to undertake routine equipment maintenance, set up areminder mechanism in the computer system. If a leak is discovered, it must
be repaired right away and tracked for four weeks while also performing aself-check once every week. The irregularity could only be declassiﬁed fromsurveillance and inspection after it returns to normal.

Enhancedetectiontechnology

Apply GasFind IR infrared leak detectors to help reduce the time needed tolocate potential effusion in equipment.

Hazardous Air Pollutant Management
In compliance with rules, NPC regularly assigns a testing organization authorized by the National Institute ofEnvironmental Analysis to inspect the concentration of dioxin in the discharge pipes of cogeneration coalﬁred units and incinerators. All of the test results meet regulatory requirements:( 1 ) The coal-ﬁred units are inspected every 2 years, and the inspection values are all less than 1 ng-TEQ/Nm 3 .
( 2 ) The incinerator is inspected once a year, and the inspection values are all less than 0 . 1 ng-TEQ/Nm 3 .
The Company has completed regulatory compliance checks in accordance with the "Emission Standards
for Hazardous Air Pollutants from Stationary Pollution Sources" published by the Environmental Protection
Administration in 2021 . Compared to the first-stage standards, the actual emission concentrations ofcontrolled projects are far lower. The results of the independent testing, which was finished in 2022 , also
meet the requirements for the second stage.

2022 Sustainability
Report2022年永續報告書2091

Nan Ya Plastics Corporation

3.4 Water Resource Management
3.4.1Statistics on Water Consumption
Water Management
NPC pays great attention to water sources in order to preserve water supplies. From north to south, NPC
has 9 plant sites in Taiwan. Surface water and tap water are the primary water sources. The total water
consumption in 2021 is 27 , 183 million liters/year, increasing 975 million liters/year from 26 , 208 million liters/
year in 2020 , primarily as a result of a rise in capacity utilization. River water, reservoirs, tap water, andgroundwater are the primary sources of water for each plant site.
Company

Plant

Water withdrawal source

ShulinShimen Reservoir, Dahan River, groundwater

LinkouDahan River, groundwater

Kung San

Shimen Reservoir, groundwater

Jinxing

Taoyuan Irrigation

MailiaoJiji Weir

Chiayi

Lantan Reservoir, Zengwen Reservoir, Chianan Irrigation,
groundwater

Hsinkang

Lantan Reservoir, Zengwen Reservoir, Chianan Irrigation

Renwu

Fengshan Reservoir and groundwater

LinyuanFengshan Reservoir

NCPC

MailiaoJiji Weir

Nan Ya PCB

Jinxing

Taoyuan Irrigation

PFG

Hsinkang

Lantan Reservoir, Zengwen Reservoir, Chianan Irrigation

NPC

2021 Water Withdrawal Statistics

Unit: million liters/year

Surface water

Well water(groundwater)

Third-party (tapwater)

OthersTotal

NPC

15 , 749

1 , 541

2 , 849691

20 , 830

NCPC

1 , 454--47

1 , 501

Nan Ya PCB--

4 , 002213

4 , 215

PFG

637

-

-

-

637

17 , 840

1 , 541

6 , 851951

27 , 183

Subsidiaries in
TaiwanWater
withdrawal
sourceCompany

Subtotal

Note:(1) The data from each plant's survey and the water footprint veriﬁcation statement were used to calculate the statistical numbersin this table. The 2022 water footprint veriﬁcation statement is expected to be released in the third quarter of 2023, and therelevant water consumption information will be disclosed in next year's report.
(2) Recycled rainfall serves as the other source of water for NPC and NCPC.
(3) The other water sources for Nan Ya PCB are transported from the Jinxing Plant of NPC.

19
92

Ongoing
Sustainable
Governance
Strategy

Green
Environment
Management
Promotion

Product
Value
Expansion

3

Creating a
Happy
and Safe
Workplace

The Pursuit of
Co-Prosperity
and a Better
HomelandAppendix

Water Consumption at Jiji Weir
According to the "Jiji Weir Industrial and Public Water Supply Report" of the Industrial Development Bureau,
MOEA, the annual water supply of Jiji Weir in the past four years ( 2019 - 2022 ) ranges from 1 , 750 , 730 , 000
to 5 , 100 , 060 , 000 tons. In 2022 , the average industrial water consumption accounted for 3 . 3 % of the total
water supply, and the average diverted agricultural water usage only accounted for 1 . 8 %. The water
consumption is shown in the table below.

Statistics on Water Supply from the Jiji Weir from 2019 to 2022
Inﬂow from the
Jiji Weir

Agricultural
Irrigation

Unit:10,000tons

Industrial consumption

Diverted
Agricultural
Water (D)Proportionof Total
Agricultural
Water
Consumption(D)/(B)（A）

Average Water
Consumption(B)

Average Water
Consumption(C)

Proportion of
Water Source's
Total Volume(C)/(A)2019

510 , 006

189 , 778

9 , 840

1.9%

3 , 301

1.7%

2020

175 , 073

126 , 194

9 , 545

5.5%

3 , 500

2.8%

2021

284 , 714

135 , 989

9 , 726

3.4%

3 , 282

2.4%

2022

266 , 056

169 , 917

8 , 860

3.3%

3 , 031

1.8%

Year

The water consumption of the Mailiao Industrial Complex does not affect nearby agriculture and otherindustries. To prevent water shortage during the dry season, FPG prepared an environmental impact
assessment (EIA) report to apply for setting up a seawater desalination plant that can produce 100 , 000
tons of fresh water per day. The report was approved by the EPA on October 9 , 2018 , and approved by the
MOEA on December 26 in the same year. It is expected that the seawater desalination plant could produce
fresh water by 2024 .

Water Stress Assessment
NPC monitors water use while identifying water resource risks and assessing the impacts of water stress byusing the World Resources Institute's (WRI) Water Risk Assessment and Available Water Remaining Approach(AWARE). Based on indicators like "water pressure," "water consumption," "annual changes in water supply,"and "inter-seasonal changes in water supply," the water resources situation simulation demonstrates thateach plant area does not draw water from and discharge water into the water-stressed area. Additionally,
the Company raises its management standards to match those in water-stressed areas, actively promotes
water-saving practices, and expands its usage of recycled water in the process.

Water Recycling
The majority of the water utilized at the plant is used in the manufacturing process as industrial water, purewater, gas, etc. Every plant carries out a realistic analysis of its water usage and recycling practices, andit actively encourages the recycling and reuse of wastewater, rainwater, and process water. Using theMailiao plant as an example, the water recovery rate (R 2 ) announced by the Ministry of Economic Affairs
shows that the water recovery rate of the Mailiao plant could reach 91 . 3 %, with the rainwater collection in
2022 being 568 , 000 tons/year (accounting for 6 . 8 % of the water consumption of the Mailiao plant) and thewastewater recovery being 294 , 000 tons/year.

Responding to Water Resource Risks
In response to the risk of water shortage caused by extreme weather, the important promotion cases are as follows:●

Construct a seawater desalting plant in Mailiao Industrial Complex(constructed by FPCC): Construction
began in 2017 and is scheduled to be completed in August 2023 . It can provide around 100 , 000 tons offresh water per day, which is enough to service more than one-third of the industrial area.
● Jinxing site uses effluent water of Taoyuan Norther District Water Resource Recycle Center as theprocess cooling water.
● Implement circular economy, actively promote various water saving improvement projects.

2022 Sustainability
Report2022年永續報告書2093Nan Ya Plastics Corporation

3.4.2 Efﬂuent Management and Sewage Prevention
Efﬂuent Control Process
Treatment Stage

Management Stage

Reduction StageTo decrease the impact on
the discharged water body,the engineer and construction
department, as well as the safety,
health, and environment unit,
collect and assign treatment
facilities (including physical,
biological, and chemicaltreatment methods) dependingon the characteristics ofprocessing efﬂuents.

To efﬁciently manage water,
dedicated processing
departments and personnel
are assigned and get regulareducation and training, as
well as conduct water quality
inspections. The water could
only be discharged once it
met the statutory standards
for water quality.

Based on the efﬂuent
quality and quantity,each plant periodicallyevaluates and implements
improvement plans.

Speciﬁcations for Efﬂuent Testing
Every quarter, samples and testing are conducted at each plant location.
Additionally, testing is carried out by the processing department at least oncea day. The results all meet the national requirements. There are 8 sets in totalof automatic continuous monitoring systems for discharge water installedin Shulin, Mailiao, Hsinkang, and Chiayi sites. The systems keep track ofdischarge volume, temperature, pH value, and conductivity in real-time with
the nearby competent authorities. (The Mailiao site needs to do additional
COD and SS tests.) Please refer to "Prevention and Energy Conservation
Performance" on NPC's website for the discharge volume in each plant.

"Prevention and Energy
Conservation Performance"
on NPC's website

Statistics on Wastewater Discharge
In 2021 , NPC and its subsidiaries in Taiwan discharged 9 , 774 . 0 million liters of total efﬂuent, a decrease of
300 . 7 million liters over 2020 . Among the discharged water bodies, Nankan River in Taoyuan City (Strictly
controlled component: copper) and Houjin River in Kaohsiung City (Strictly controlled component: ammonia
nitrogen), are currently listed as the total quantity control zone.
Unit: million liters/year

Statistics on Discharge Volume in 2021
Discharge

Surface water

SeawaterThird-party water

Total

NPC

1 , 815 . 0

2 , 883 . 9

1 , 830 . 0

6 , 528 . 9

Subsidiaries in Taiwan

3 , 245 . 1

0.0

0.0

3 , 245 . 1

Subtotal

5 , 060 . 1

2 , 883 . 9

1 , 830 . 0

9 , 774 . 0

CompanyNote:(1) Subsidiaries in Taiwan include Nan Ya PCB and PFG. (The Mailiao Wastewater Plant of the Company is in charge of treating
the wastewater from NCPC.
(2) In the table above, the discharge water at each discharge endpoint is freshwater with a total dissolved solids (TDS) value of
1,000 mg/L or less.

19
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Ongoing
Sustainable
Governance
Strategy

Green
Environment
Management
Promotion

Product
Value
Expansion

Creating a
Happy
and Safe
Workplace3

Statistics of Discharge Volume 2020 ~ 2021
2020

2021

10 , 000
8 , 000

16 , 000

17 , 409

15 , 802

6 , 528 . 9
12 , 000

6 . 000

8 , 000

4 , 000

3 , 070 . 0

2 , 792 . 2

2 , 000NPC

Nan YaPCB

PFG

4 , 000

452 . 9337 . 20

Unit: million liters/year

20 , 000

9 , 774 . 0
6 , 667 . 5

Appendix

Water Consumption in 2021

Unit: million liters/year

10 , 074 . 7

The Pursuit of
Co-Prosperity
and a Better
Homeland

SubtotalNPC

Nan YaPCB

PFG

1 , 607
Subtotal

0

NPC

Subsidiaries Total waterin Taiwan consumption

Note: The Mailiao Wastewater Plant of the Company is in charge of treating the wastewater from NCPC.

Discharge Impact on Ecology: Ecological Preservation in Mailiao Industrial Complex
Over the years, FPG has commissioned competent institutes to assess the environmental impact andecological changes of Mailiao Industrial Complex's neighboring ﬂora and animals. According to the results,
the number of plant species is steady, whereas the number of animal species is mostly changed by seasonal
impacts. Mailiao Industrial Complex's operation has no substantial impact on the surrounding environment.
The average wastewater discharge of Mailiao Industrial Complex in 2022 was 75 , 200 tons/day, which wasmuch lower than the EPA quota of 187 , 600 tons/day. All wastewater treatment plants are strictly monitored toensure that wastewater is only discharged
w h e n i t m e e t s r e g u la t or y s t a nd a r d s .
According to the results of the monitoringover the years, all wastewater fulfills thedischarged standards. Furthermore, during along-term study of marine ecology, ChineseWhite Dolphins were found populating a"Ecologicalnearby sea area. It demonstrates that the
Preservation" on "TheBeauty of Mailiao
Mailiao Industrial Complex has no effect on
Eco-industrial Park"
the ecosystem of Chinese White Dolphins.
websiteNote: For details of the ecological observation in Mailiao Eco-industrial Park, please refer to the "Ecological Preservation" section
on "The Beauty of Mailiao Eco-industrial Park" website

3.4.3 Water Conservation Performance
To ensure the efficient use of water resources, the Company continues to implement process water
reduction, water-saving management measures, and evaporation loss reduction, as well as wastewater
recycling and reuse, and strengthens rainwater collection in each plant. In 2022 , the Company and its
subsidiaries in Taiwan completed a total of 48 water-saving improvement projects, with a total investmentof NT$ 90 million and an annual beneﬁt of approximately NT$ 10 million. The water-saving performance isshown in the table below:

Summary table of NPC's water conservation implementation over the years
Year
Item
Improved cases

1999 ~ 2020 (A)

2021
（B）

2022
（C）

In progress
（D）

Total
（E=A+B+C+D）

727

48

33

20

828

30 , 768

652

1 , 868

1 , 327

34 , 615

Amount invested(NT$ 100 million)

5.2

0.5

0.9

0.5

7.1

Improvement beneﬁts(NT$ 100 million/year)

1 . 650 . 020 . 080 . 07

1 . 82

Water saved (ton/day)

Data Source: FPG Energy and Water Conservation Improvement Database; in-progress projects are counted as ongoing
improvement cases in January 2023 statistics.

2022 Sustainability
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Nan Ya Plastics Corporation

Summary table of water conservation implementation of Subsidiaries in Taiwan
over the years
Year
Item
Improved cases

1999 ~ 2020 (A)

2021
（B）

2022
（C）

In progress
（D）

Total
（E=A+B+C+D）

372

18

15

1

406

11 , 533

246

293

12

12 , 084

Amount invested(NT$ 100 million)

0.9

0 . 0004

0 . 005

0 . 01

0.9

Improvement beneﬁts(NT$ 100 million/year)

0.5

0 . 010 . 020 . 001

0.6

Water saved (ton/day)

Data Source: FPG Energy and Water Conservation Improvement Database; in-progress projects are counted as ongoing
improvement cases in January 2023 statistics.

Water-saving Projects and Performance in 2022
Project 1
The wastewater recycled from the second phase expansion
project of the Haifeng Wastewater Treatment Plant's wastewater
recycling was provided to the Haifeng site's production plant as
make-up water for the cooling tower.

Water-saving Performance

1 , 400 tons/day

Project 2
The metering mechanism of the condensate transferred from theplasticizer plant to the PA plant is modiﬁed from liquid-level control
to ﬂow control.
Project 3
Use RCO neutral detergent when the dyeing and finishing plantutilizes dyes with a concentration of 3 % to 5 % to increase dyeing
efﬁciency, streamline the procedure, and reduce costs.

19
96

Water-saving Performance

196 tons/day
Water-saving Performance

33 tons/day

Ongoing
Sustainable
Governance
Strategy

Green
Environment
Management
Promotion

Product
Value
Expansion

Creating a
Happy
and Safe
Workplace

3

The Pursuit of
Co-Prosperity
and a Better
HomelandAppendix

Water-Saving Improvement Project- Phase II Expansion of Wastewater
Recycling in Haifeng Wastewater Treatment Plant
A SUF+RO system was built in NPC's "Phase II Expansion of Wastewater Recycling in Haifeng
Wastewater Treatment Plant" in 2022 . It can process 2 , 000 tons of wastewater every day. 1 , 400
tons of wastewater per day was recycled for use in the manufacturing process, with an expected
recovery rate of over 70 percent.
Additional information of Wastewater recycling:
1. Processing capacity: 83 tons/hour (2,000 tons/day).
2. Recycling volume: 58 tons/hour (1,400 tons/day).
3. Recovery rate: more than 70%.
4. Quality of treated water: ≦400μs/cm.

Scale inhibitor
Bactericide

Recycle for production process
Discharge
2,000 CMD

RO system(M-2401)
Buffer tank(T-2101A/B)

Buffer tank(T-2102)
Submerged
ultrafiltration
Hydrochloric Sodium
system (SUF)(T-2201)
bisulfite
acid
(SBS)

Aerobic activatedsludge(T-2702)

Sand
filter tank
(TF-01)1,400 CMD
Recycle for
production
process

Discharge tank
(T-110)RO concentrate
600CMD

Treatment of RO Concentrate

Facultative tank(T-2701)

Storage tank(T-2602)

Plate packseparator(T-2703)

Temporary tank(T-2704)

NPC aims to reduce water consumption per unit product by 2 % compared with the previous year. However,
due to the wide variety of products and different measurement units, the energy consumption of theMailiao site, which has the largest consumption, is used for comparison.
The Mailiao site's average water consumption in 2022 was 21 , 081 tons/day, a 36 . 8 % decrease from 33 , 382
tons/day in 2021 . This is mostly due to a 35 . 0 % decrease in production capacity utilization rate in 2022 ;water consumption per unit product in 2022 was 3 . 398 tons/ton, a 2 . 9 % decrease from 2021 . This was owing
to the completion of the Haifeng Wastewater Treatment Plant's second phase of wastewater recycling,which provided make-up water for the cooling towers in Haifeng plant area. In addition, the rainwater
recovery rate of the Mailiao site reached 91 . 9 %, and the average rainwater recovery volume was 1 , 556
tons/day. The water consumption per unit product and rainwater recovery volume of the Company's
Mailiao site are as follows:

Trend of water consumption per unit productof NPC's Mailiao site

Trend of rainwater collection of NPC's
Mailiao site

Unit: tons/ton
3 . 60Rainwater collection (tons/day)

3 . 57

2 , 500

3 . 553 . 503 . 472 , 000

3 . 503 . 403 . 40

1 , 000
500

3 . 3520192020

100 . 792 . 880 . 091 . 9

1 , 972

1 , 998

1 , 915

1 , 556

2019

2020

2021

2022

1 , 500

3 . 453 . 30

Collection rate (%)

2021

2022

0

Note:
(1) Amount of rainwater collection = [amount of rainwater collected from each plant in Mailiao] / [number of days in themonth].
(2) Collection rate = [(rainwater collection ton/day) x (number of days in the month)] / [(monthly average rainfall from weather
data mm/month) x (rainwater collection area of each plant) x coefﬁcient of run-off](3) Coefﬁcient runoff = Strata, porous 0.2; Strata, impervious 0.8; therefore, the collection rate may be greater than 100%

2022 Sustainability
Report2022年永續報告書2097

Nan Ya Plastics Corporation

3.4.4 Soil and Groundwater Management
Groundwater monitoring activities have been carried out every three months since the plant's constructionin order to efﬁciently regulate the quality of soil and groundwater. After consulting with US experts and theSoil and Groundwater Remediation Process of the Industrial Bureau of the Ministry of Economic Affairs, theCompany established a "Soil and Groundwater Pollution Remediation and Inspection Management Plan"
to manage known pollution and potential pollution in order to ensure that leakage incidents can be kept
under control as soon as possible.
The plant's groundwater monitoring results for 2022 all met the requirements, and the frequency of
implementation is as follows:●●●

Every 2 years, testing is conducted at the Shulin, Kung San, Linkou, and Jinxing sites: This year, a total of
10 tests were conducted, and nothing unusual was found.
Every quarter, the Mailiao site is put into operation: Each time, samples are taken at 39 distinct places,
all of which are normal.
Every 6 months, the Hsinkang site is put into operation: Each time, samples are taken at 7 distinct places,
all of which are normal.

3.5 Waste Management and Circular
Economy3.5.1 Waste Management
Waste Impact Assessment and Management Process
Based on operations and production processes, the Company identifies potential impact sources andmanages them in accordance with Environmental Protection Agency waste-related laws and regulations,
the waste disposal plan approved by the appropriate authority, and the "Management Regulations ofBusiness Waste" developed by FPG.
The output department is usually in charge of handling general and hazardous waste, and manufacturers
with valid environmental protection permits are entrusted with the collection and disposal of waste. To
make sure that all business wastes are properly handled by the waste removal manufacturers, management
mechanisms for internal audits of waste removal have been established.
In 2022 , 261 waste disposal tracking veriﬁcations were conducted in compliance with legal standards, andthere was no anomaly where wastes were disposed of at the waste removal manufacturers' option.

Identiﬁcation of Material Impact
Description of impact source
Supplies of raw
materials

Production Process

Manufacturing of
Product

Pollution
prevention(includes
equipment
maintenance)

Shipping
19
98

Container of raw materials (e.g. ﬂexible freight bags, 53 -gallon barrels, etc.)●

Impurities in the chemical reactions
Residues after raw materials are mixed and used
● Leftovers from the cutting process●●

Resultant of wastewater treatment
Resultant of electrostatic dust
collection, ﬂue-gas desulfurization,and denitriﬁcation● Resultant of ﬂue-gas desulfurizationand denitriﬁcation
●

●
●

●

Waste products from thereplacement of insulation materials
and building renovations● Engineering waste generated after
annual repairs and maintenanceContainers of products (e.g. pallets, packaging bags, etc.)
Replacement of product for it has reached the useful life

Ongoing
Sustainable
Governance
Strategy

1

STEP

Green
Environment
Management
Promotion

Product
Value
Expansion●

Prior to beginning thedisposal procedure,
the waste disposal
vendor delivers thenecessary paperwork.

●

The dedicateddepartment is incharge of managing
the vendor'snecessary informationand conducting
the qualiﬁcation
evaluation.

●

3

2

STEP
●

Creating a
Happy
and Safe
Workplace

The manufacturer
submits a waste
disposal application incompliance with therequirements. They can
only enter or departthe plant after having
their identiﬁcation
conﬁrmed.
The whole disposal
process must be
monitored by thewaste-generating unit.

STEP

The Pursuit of
Co-Prosperity
and a Better
Homeland3

Appendix

STEP●

After waste disposal
is accomplished,obtain the
documents from the
manufacturer statingthat it was properly
disposed of.

●

Personnel should
be dispatched for
onsite inspection
on a regular basis
to ensure the
manufacturer isworking properly.

4●

According to theannual data results,
waste disposed of
via incineration andlandﬁll is chosen as the
reduction priority.

●

Conduct dynamic
audits to ensure thatrecords, storage,
labeling, andclassiﬁcation in theplants comply withregulations.

Statistics on Waste Disposal
In 2022 , NPC and its subsidiaries in Taiwan generated 114 , 414 . 1 tons of waste, of which 76 . 2 %was recycled (the proportion of waste reused + recycled among total waste). The following are theclassiﬁcations of hazardous and general waste:

Statistics on Hazardous Waste Disposal

Unit: Ton

Incineration
Company

LandﬁllExcluding energy
recovery

Including energy
recoveryReusedRecycled

The Company

1 , 431 . 46

431 . 55

20 . 92

0

3 , 751 . 14

Subsidiaries in
Taiwan261 . 04

1 , 432 . 5

00

14 , 428 . 39

Subtotal

1 , 692 . 50

1 , 864 . 05

20 . 920

18 , 179 . 53

Total

21 , 757 . 00

Statistics on General Waste Disposal

Unit: Ton

Incineration
Company

LandﬁllExcluding energy
recovery

Including energy
recoveryReusedRecycled

The Company

9 , 634 . 78

6 , 250 . 44

4 , 218 . 97

307 . 54

59 , 705 . 13

Subsidiaries in
Taiwan921 . 99

2 , 627 . 33

39 . 090

8 , 951 . 82

Subtotal

10 , 556 . 77

8 , 877 . 77

4 , 258 . 06

307 . 54

68 , 656 . 95

Total

92 , 657 . 09
Unit: Ton

Item

Hazardous Waste

Disposal Method
Volume of waste
treatedOn-site disposal

Offsite disposal

On-site disposal

Offsite disposal

The Company

20 . 92

5 , 614 . 15

13 , 791 . 73

66 , 325 . 13

Subsidiaries in
Taiwan0

16 , 121 . 93

961 . 08

11 , 579 . 15

Subtotal
Total

General Waste

21 , 757 . 00

92 , 657 . 09
114 , 414 . 09

2022 Sustainability
Report2022年永續報告書2099

Nan Ya Plastics Corporation

3.5.2 Circular Economy Promotion
By forming the Energy Saving and Carbon Reduction Promotion Team, the four primary enterprises ofFormosa Plastics Group (FPG) collaborate on integrating resources and enhancing the efﬁcacy of energy
and water savings. Every year, along with domestic universities, the Company holds presentations andmutual observation meetings on excellent cases of energy saving, water saving, and environmental
protection to encourage all units to implement improvement projects on energy saving, carbon reduction,and circular economy.

Promotion Strategies
Regarding the four aspects of raw materials, water cycling, energy cycling, and waste recycling, theCompany reviews and actively promotes various improvement measures based on the 4 R principles ofcircular economy:
ReduceRenew

Reduce raw materials
consumption● Reduce energy usage(improvements onenergy saving andwater saving)● Reduce waste
generation

Development of green
products● Development ofenergy-saving products● Development of
biodegradable
products● Application of carbon
capture technology

●

e
yc
l

Re
c

se

Recycle and reuse every
energy and resource inthe process● Cross-plant integration ofenergy and resource● Reuse low-level energy

u
Re

●

4R

ew

Reuse

n
Re

Re
du
ce

●

Recycle●●Waste recycling
Development ofrecycled products

Results of Promotion
To encourage all units to strive to improve the effectiveness of energy saving, carbon reduction, and circular
economy, the Company not only holds a commendation conference for outstanding plants, but also holds
presentations on outstanding cases of energy saving, water conservation, and environmental protection incollaboration with domestic universities.

2022 . 102022 . 09 . 23191002022 . 10 . 07 - 10 . 09
2022 . 11 . 05 - 11 . 06

Location
The 2022 Commendation
Conference of Excellent
Department on Energy
Conservation, Carbon
Reduction, and Circular
Economy Promotion held byMailiao Industrial Complex

Location

Location

Yunlin County Government
and Mailiao Industrial
Complex collaborated
to host the FPG Circular
Economy Forum.

International Science Festival
hold by Taiwan Climate
Action Exposition (TWCAE)
in the National Science andTechnology Museum

Signiﬁcant accomplishments
The BPA- 3 plant won ﬁrst
prize in the " 2022 Excellent
Department on Energy
Conservation, Carbon
Reduction and Circular
Economy Promotion in
Mailiao Industrial Complex".

Signiﬁcant accomplishments

Signiﬁcant accomplishments

Resource Recycling
Department of NPC
contributed technology andexpertise for reusing foodwaste.

The polyester ﬁber division of
NPC displayed its approaches
and accomplishments inpromoting the recycling of
discarded clothing and PET
bottles.

Ongoing
Sustainable
Governance
Strategy

Green
Environment
Management
Promotion

Product
Value
Expansion

Creating a
Happy
and Safe
Workplace

3

The Pursuit of
Co-Prosperity
and a Better
HomelandAppendix

Circular economy example- NPC's polyester ﬁber division's PET bottle recycling
promotion and outcomes

Nan Ya Plastics
Corporation

PET bottle recycling

Recycling-putting the circular economy concept into action
In 2007, NPC began commercial manufacturing of recycled PET bottle fiber (B2T products)
using both physical and chemical PET recycling technologies. To address the various demands of beverage and fashion brands, theCompany has now entered the closed-loop
circular economy of B2B and T2T.

The invention andcharacteristics of PET bottles
PET bottles were launched in 1967;
because of their lightweight, clear
clarity, resistance to breakage,superior air retention, and low cost,they have replaced glass or metal
and become.

Inappropriate behaviors

PET
bottles

PET
preform

circulareconomyof B2B

Plastic
chips

Bottled beverages are convenient tocarry around, which leads to theconsuming behavior of taking anddiscarding them, which not only
wastes resources but also has an
impact on the natural environment.

Scrap
fabricPlastic
bales

Cloths

B2T
Open
Loop

Plastic
flakesClassify
textilefabrics

circulareconomyof T2T

TextileTextilechips

NPC cares for the earth

B: Bottle
T: Textile

The correct way to recycle PET bottles
Plastic bottles are composed of caps, label
paper, and bottle bodies. Polypropylene (PP),polyvinyl chloride (PVC), and polyester (PET) are
the materials applied, all of which have a highrecycling value. The three steps of the correct
recycling process are shown on the right side:

NPC is constantly looking into themethod of recycling PET bottles into
high-quality polyester fabric. It has
now established two process
technologies: physical recycling andchemical recycling, which caneffectively minimize the quantity of
rubbish and waste of earth resources,
as well as construct a sustainable
recycling supply chain.

Twist back the bottle cap
Crush empty bottle

Rinse
To avoid odors in therecycling pile, simply
wash before
discarding.

Crush empty bottles
can not only take upless room in trash bags
but also in recycling
vehicles.

Bottle tops also have tobe recycled, so makesure to twist the caps
back on the plastic
bottles before discarding
them to keep them from
polluting theenvironment.

NPC-Recycling Achievementsof PET Bottles
year
2022
2021

36

1 ton of recycled products= 80,000 PET bottles

18

NPC (2021)

Recycle8,500 million
PET bottles

Reducecarbonemissionscarbon reduction
million tons of CO2e

By recycling PET bottles, NPC's four major production
locations in Taiwan, Mainland China, Vietnam, and theUnited States could be able to reduce 180,000 tons ofcarbon emissions by 2021. NPC re-invested NT$ 0.64 billion in
2022 to support the greening of the textile industry and torespond to brand and market needs. It is expected to raise
the processing capacity of recycled PET bottles to 360,000
tons by the end of 2022.

Carbon absorption of 1 Daan Forest Park
= 389 tons/year469
Daan Forest Park

2022 Sustainability
Report2022年永續報告書20101

Nan Ya Plastics Corporation

chapter

19

4Creating a
Happy
and Safe
Workplace

4.1 Human Rights

105

4.2 Talent Training andDevelopment

106

4.3 Workplace Safety

115

4.4 Supplier and Contractor
Management

127

Ongoing
Sustainable
Governance
Strategy

Product
Value
Expansion

Green
Environment
Management
Promotion

Creating a
Happy
and Safe
Workplace

4

The Pursuit of
Co-Prosperity
and a Better
HomelandAppendix

A company's ability to develop sustainably depends on its workforce. In order to create a company that its workers would be
proud of, NPC is committed to creating a safe and secure work environment by implementing a variety of methods to care forour employees' physical and mental well-being while enhancing their awareness of safety.
United Nations Sustainable
Development Goals (SDGs)

Strategies●

Taking care of employees' health- sustaining all workers' physicaland mental health and improving the overall quality of the work
environment●

Creating a culture of safety and health - to prevent hazards in theworkplace, adopt process safety and health management at every
level.

2022 Goals

Material Topics
Employee beneﬁts
and salaries,
occupational healthand safety, industrial
and public safety2022 Implementations（Did not meet the goals; Goals met;
Exceeded expectations）

Short-term Goals( 2023 Goals)

Medium- and Longterm Goals( 2024 - 2030 )Taking care of employees' health●●

Provide employees withattractive compensation
and beneﬁts, as well
as extensive training
and smooth promotion
pathways
Provide for the physicaland mental well-beingof employees, as well
as a healthy work
environmentIn response to the COVID-19, 599 online
interviews for new staff were performed, as wellas an online opinion poll, which got 190 replies●

Provide employeeswith attractive
compensation andbeneﬁts, as well as
extensive training andsmooth promotion
pathways●

Provide for the physicaland mental well-beingof employees, as well
as a healthy work
environmentNew maternity beneﬁts for company ofﬁcials
and their wives begin in 2022:① Maternity subsidy: At birth, each newborn
will receive NT$20,000 subsidy (retroactive
to July 1, 2022)② Child care subsidy: A monthly subsidyof NT$2,000 is paid per child until the kid
reaches the age of six (no subsidy is offeredduring leave without pay)
 In 2022, the Company's average training hours
for employees were approximately 44 hours
per employee, with promotion examination
options available for eligible personnel●

Promulgated NPC's"Diversity and Inclusion
Policy"●Improve the "reporting
methods" and thecommunication
channels Proactively followed up with employees who
had chronic or poorly controlled illnesses
and collaborated with supervisors to provide
workplace care●

Provideemployeeswith attractive
compensation
and beneﬁts, aswell as extensive
training andsmooth promotion
pathways●

Provide for thephysical andmental well-beingof employees, aswell as a healthy
work environment

 In 2022, the Company organized healthpromotion programs for a total of 4,873 persons
Creating a Safety and Health Culture●

Continue to promote
digital optimizationof work safety, ﬁreprevention, and PSM
procedures
Improve operational efﬁciency by digitally
optimizing industrial safety, ﬁre protection,
and PSM management processes, as well as
strengthening on-site management duties via
data supervision.

●

Continue to promote
digital optimizationof work safety, ﬁreprevention, and PSM
procedures●

There were no fatal work
accidents and less thansix cases of public injuries;
there were no accidents
In 2022 , there were no fatal occupational
accidents, 5 industrial injuries, a disabling
frequency rate of 0 . 13 , a disabling severity
rate of 1 , and a frequency-severity indicatorof 0 . 01 , meeting last year's short-term goal●

No fatal work
accidents and public
injuries< 5 ; 0 accidents●

The "Social Responsibility
Commitment Letter"
response rate increased
to 90 %

 The "Social Responsibility Commitment Letter"
response rate increased to 99 %Zero occupational
injuries; zeroaccidents

Implement Sustainable Supply Chain Management●

The "Social Responsibility
Commitment
Questionnaire" response
rate increased to 85 %

 The "Social Responsibility Commitment
Questionnaire" response rate increased to
95 %●The "Social
Responsibility
Commitment Letter"
response rateincreased to 100 %●The "Social Responsibility
Commitment
Questionnaire" response
rate increased to 100 %Strengthen supply
chain sustainability
management
and serve as
the cornerstoneof industry
sustainability
development.

2022 Sustainability
Report2022年永續報告書20103Nan Ya Plastics Corporation

Material topics

Employee beneﬁts and salaries

Occupational health and safety

Corresponding
GRI standards

202 Market Presence
401 Employment

403 Occupational Health and Safety

Corresponding
SASB standards:-

Occupational Health and Safety[Impact]
Planning employee wellness
programs can enhance
performance and well-being.

[Impact]
Failure to ensure employee workplacesafety will result in medical costs, lawsuits,and, in the worst-case scenario, work
disruption.

[Impact]
1 .Using new technology to improvesmart disaster prevention and smart
industrial safety can help to reduce
the number of dangerous accidents.
2 .The incidence of operational
accidents may result in increased
costs such as operational
interruption, equipment damage,and reputational harm for businesses.

NPC has a human rights policy,
follows rules and regulations,protects employees' basic
human rights, and provides
generous compensation as
well as a robust management
structure, solid training, feasible
promotion and grievancechannels, and recruits great
talents.

NPC established an Occupational
Safety and Health Committee. In
addition to continuing to promote"Process Safety Management" andholding "PSM Operation Seminars and
PSM Specialist Forums" every six months,
it also encourages all plant sites toobtain ISO 45001 Occupational Safety
and Health Management System andTaiwan Occupational Safety and
Health Management System (TOSHMS)
veriﬁcation to deepen employee safety
culture, reduce the frequency of industrial
safety accidents and occupational
disasters, as well as uphold the safety ofthe employee and the nearby residents.

1 . Fulﬁll all required obligations.
2 . Uphold the social responsibilities.
3 . Focus on preventing pollution.
4 . Promote the circular economy.
5 . Strengthen risk management.
6 . Prevent unusual accidents.
7 . Encourage all staff to participate.
8 . Implement continuous improvement.
9 . Put health management into action.
10 . Effective internal and external
communication.
11 . Enhance management
effectiveness.
12 . Ensure sustainable operations.

Impactdescription

Policies andcommitment

Management action

Prevention
andmitigation
actionStakeholders
Engagement

19
104

Provide a secure and generous 1 . Raise employee safety awareness:
wage, as well as an extensive
Conduct a review of employee Safety
education, training, promotion,
Walk and Talk (SWAT) implementation.
and development system,
2 . Strengthen equipment foolprooﬁng:
and comprehensive welfare
Inspect the faultless integrity of rotating
measures.
machinery and offer suggestions for
improvement.

●

●

●

1 . Every month, the Safety and Health
Provide employees with
Department conducts employee
consistent pay.
Safety Walk and Talk (SWAT)● Provide employees with
implementation checks on thematernity beneﬁts and otherassociated plants (ofﬁces) to avoid
beneﬁts that exceed the law.
dangerous behaviors.
● Employee education and2.
All company divisions have been
training should be provided.
forced to perform anti-fool inspections
Action plan ● Provide employees with equal
and improve rotating equipment,
possibilities for promotion.
and random checks are still being
undertaken on an irregular basis.

PerformancetrackingIndustrial and public safety

Promote diverse "Process Safety
Management" procedures, deepen
all employees' safety cultures, andreduce workplace safety threats.
● Implement a contractor construction
safety management system, asupervisory system, and a quality
assessment system for transportation
safety.
Continue to promote "Process Safety
Management" procedures.
● Implement a contractor construction
safety management system, asupervisory system, and a quality
assessment system for transportation
safety.

●Employee maternity beneﬁts
took effect in 2022 .
● Enhance cooperation with
Chang Gung Memorial
Hospital to care for
employees' health, and give
paid leave for health checkups in 2022 (better than the
law).

●

Employees

Employees

Employees, contractors, and local
inhabitants

●

●

●

Organizations such aslabor unions and welfarecommittees allow both laborand management to fullycommunicate.
● Continue to givecomprehensive educationand training to employees,
as well as smooth promotion
pathways.

In 2022 , there were no fatal
occupational accidents, 5 industrial
injuries, a disabling frequency rate of
0 . 13 , a disabling severity rate of 1 , anda frequency-severity indicator of 0 . 01 ,meeting last year's short-term goal.
● In 2022 , the Company organized healthpromotion programs for a total of 4 , 873
persons.

Proactively followed up with employees
who had chronic or poorly controlled
illnesses and collaborated withsupervisors to provide workplace care

The number of industrial injuries
has decreased signiﬁcantly in the
Company: 16 in 2019 , 10 in 2020 , 8 in
2021 , and 5 in 2022 .

Give stakeholders access to bothinternal and external complaint
channels so they can respond quickly
to issues.

Ongoing
Sustainable
Governance
Strategy

Creating a
Happy
and Safe
Workplace

Green
Environment
Management
Promotion

Product
Value
Expansion

4

The Pursuit of
Co-Prosperity
and a Better
HomelandAppendix

Special Program- New Employee Beneﬁts in 2022
Program 1

Employee maternity beneﬁts

In addition to continuing to provide employees with a safe and pleasant life, NPC launched"Employee Maternity Beneﬁts" in 2022 and lowered colleagues' childcare burden to address society's
low birthrate. Current employees are entitled to the following maternity beneﬁts:
Subsidies
Cash:● Maternity subsidy: At birth, each newborn will
receive an NT$ 20 , 000 subsidy (retroactive to July 1 ,2022 )● Child care subsidy: A monthly subsidy of NT$ 2 , 000
is paid per child until the kid reaches the age of six(no subsidy is offered during leave without pay)

Program 2

Present:
Pregnancy gifts: Probiotics, iron tablets, vitamin B, andvitamin C of Formosa Biomedical Technology Corp.
● Birth gifts: Anti-cocoon spray, fruit and vegetabledishwashing liquid, shampoo and shower gel for infants
and toddlers, moisturizing lotion and soothing gel ofFormosa Biomedical Technology Corp.
●

Care for employees' health, and give paid leave for health check-ups (better than the law)

To properly care for employees' physical and mental health, NPC offers a variety of employee
benefits, such as covering part of their medical expenses at Chang Gung Memorial Hospital (upto 40 %). Furthermore, in order to encourage employees to get regular health check-ups and track
their own health condition, the Company continues to enhance its cooperation with Chang Gung
Memorial Hospital and offers "employee paid leave for health check-ups," which is superior to thelaws in 2022 .

4.1 Human Rights
The Company supports and adheres to fundamental human rights principles
such as the United Nations Universal Declaration of Human Rights, theInternational Covenant on Civil and Political Rights (ICCPR), and theInternational Covenant on Economic, Social, and Cultural Rights (ICESCR), as
well as the laws and regulations of its global operating bases. Furthermore, the"NPC Human Rights Policy" was established to protect employees (including
contract and temporary personnel). This regulation applies to both Company
employees and non-employee personnel. Please refer to the NPC Official
Website "Human Rights Policy and Speciﬁc Practices" for further information.
Furthermore, since 2021 , the Company has provided "Human Rights Policy
Promotion" education and training in order to raise human rights awarenessamong all employees. Human rights education and training have been
implemented in the following ways over the last two years:"Human Rights Policy
and Speciﬁc Practices"
on NPC's website

Implementation of human rights education and training

A total of

11,117 persons were traind

Training
hours

2021

Number oftrainees

Human
Rights Policy
Promotion

6,199 persons were traind

A total of

A total of

3,100 hours

A total of

5,559 hours

2022

2021
2022

2022 Sustainability
Report2022年永續報告書20105Nan Ya Plastics Corporation

4.2 Talent Training and Development
4.2.1 Employee Structure and Recruitment
In 2022 , NPC and its subsidiaries in Taiwan employed a total of 18 , 389 people, with 94 . 8 % of them being
domestic. The percentage of formal employees was 99 . 5 %, while informal employees were 0 . 5 %. There
were 14 , 093 men and 3 , 343 women, all of whom were of local nationality.
The ratio of men to women among the formal employees of the nation is approximately 3 . 9 : 1 (of which
3 . 3 : 1 in staff units and 4 . 2 : 1 in production units). With an average seniority of 19 . 1 years, employees are
44 . 5 years old on average. There are 190 disabled people among them, or 1 . 0 %.
Employment in 2022
GenderCompany

Classiﬁcation

WorkplaceFemale

Male

Total

Northern
TaiwanCentral
TaiwanSouthern
TaiwanNumber of employees

1 , 906

9 , 983

11 , 889

4 , 765

1 , 499

5 , 625

Number of permanent
employeesnote( 1 )

0

0

0

0

0

0

Number of temporary employees note( 2 )

59

20

79

79

0

0

Number of employees notguaranteed minimun hours note( 3 )

0

0

0

0

0

0

Number of full-time employees note( 4 )1 , 847

9 , 963

11 , 810

4 , 686

1 , 499

5 , 625

Number of part-time employees note( 5 )

0

0

0

0

0

0

1 , 867

4 , 633

6 , 500

6 , 500

00

Number of permanent employeesnote( 1 )

0

0

0

0

0

0

note( 2 )Subsidiaries Number of temporary employees
in Taiwan Number of employees not

3

11

14

14

0

0

0

0

0

0

0

0

Number of full-time employees note( 4 )1 , 864

4 , 622

6 , 486

6 , 48600Number of part-time employees note( 5 )

0

0

0

0

0

0

NPC

Number of employees

guaranteed minimum hours note( 3 )Note:(1) Permanent employees: Full-time or part-time workers who commit to a non-ﬁxed-term (=indeﬁnite) contract.
(2) Temporary employees: Workers who commit to a ﬁxed-term or limited-term contract. The contract ends at a certain timeor upon completion of an event or task with a deadline for evaluation (such as the end of a work project or the return ofdeputized staff).
(3) Employees not guaranteed minimum hours: Employees who may be required to be available for work based on requirements
but who are not promised a minimum number of hours of work per day, week, or month, such as temporary workers, those on
zero-hour contracts, and on-call workers.
(4) Full-time employees: Workers whose weekly, monthly, or annual working hours are determined by national legal and practicalstandards of working hours.
(5) Part-time employees: Employees who don't work as many hours as full-time workers do per week, month, or year.

Employment
In all of its recruitment procedures, NPC has always upheld the values of justice, impartiality, andtransparency. Candidate selection is based on their past performance and professional experience. It
adheres strictly to the Labor Standards Act's guidelines and sets working conditions in compliance withgovernmental labor regulations. Never has it used child labor. Additionally, based on the fundamental
human right to fair employment chances for all, individual professional qualiﬁcations and experience aretaken into full consideration. After hiring, speciﬁc guidelines are developed for each employee's promotion,assessment, training, awards, and punishments, among other things, to ensure that they are all treated fairly.
Employees hired in 2022 did not experience any cases of discrimination or human rights breaches.

19
106Ongoing
Sustainable
Governance
Strategy

Green
Environment
Management
Promotion

Product
Value
Expansion

Creating a
Happy
and Safe
Workplace

The Pursuit of
Co-Prosperity
and a Better
Homeland4

Age and Regional Distribution of New Employees in 2022
Category

NPC

Type

Appendix

Unit: Person

Subsidiaries in Taiwan

Division

FemaleMale

FemaleMale

Under 29

52

317

108

358

30 - 39

9

125

87

227

40 - 49

1

0

36

91

50 - 59

0

0

0

0

Over 60

0

0

0

0

Northern Taiwan

42

208

212

633

Central Taiwan

3

51

19

43

Southern Taiwan

17

183

0

0

Total

62

442

231

676

Proportion of New Employees

3.4%

4.4%

12 . 4 %14 . 6 %AgeRegionNote: The ratio of new employees is calculated by dividing the total number of new employees by the number of new employeesof that gender.

Percentage of Local Supervisors
In an effort to give back to the community, the Company and its subsidiaries in Taiwan actively train local
individuals to become excellent senior personnel and give preference to residents when hiring entry-levelstaff. Additionally, supervisors at all levels are chosen from domestic employees who have undergoneinternal training to boost staff morale. The percentage of residents employed as entry-level supervisors(inclusive) or above has averaged more than 70 % during the past two years.
Percentage of residents hired as supervisors in NPC and its subsidiaries in Taiwan over the last two years
NPC
3 , 500
3 , 000

3 , 31174 . 7 %2 , 500100 %2 , 987
69 . 0 %1 , 000

90 %
80 %

826

836

74 . 8 %76 . 2 %

800

70 %
60 %

2 , 000

40 %

400

20 %

500
2021

2022

70 %
50 %

600

40 %
30 %

200

20 %

10 %
0%

90 %

60 %

30 %

1 , 000

100 %
80 %

50 %

1 , 500

0

Unit: Person、%Percentage(%)

Subsidiaries in Taiwan

10 %
0

2021

2022

0%

Job Security
The Company offers its employees safe and secure employment. An integrated personnel method has
been developed to replace staff dismissal with transfer. When an individual is deemed underqualiﬁed for hisor her position, the person's department head will ﬁrst communicate with the employee before transferringor dismissing the employee. Furthermore, all relevant procedures are carried out in accordance with theLabor Standards Act and other applicable laws and regulations. The employee internal transfer ratio was
28 % in 2022 . It is intended to allow employees to serve in positions that allow them to fulﬁll their full potential
in order to meet the goal of ﬂexible manpower utilization.

2022 Sustainability
Report2022年永續報告書20107

Nan Ya Plastics Corporation

In 2022 , the Company and its subsidiaries in Taiwan had a monthly average voluntary turnover rate of
0 . 61 %, while the absence rate was 0 . 44 % (absence rate computation takes sick leave, official leave,
and occupational injury leave into account, with males accounting for 0 . 34 % and females accounting
for 0 . 81 %). The absenteeism rate of outsourced personnel was 0 . 50 % (with males accounting for 0 . 54 %and females accounting for 0 . 40 %). These figures thoroughly reflect the Company's success in terms of
employee care and job security, as well as the employees' trust and sense of belonging.
Age and Regional Distribution of Resigned Employees in 2022
CategoryType

NPC

Unit: Person

Subsidiaries in Taiwan

Division

FemaleMale

FemaleMale

Under 29

19

79

69

191

30 - 39

17

63

50

134

40 - 49

28

95

19

32

50 - 59

35

302

2

0

Over 60

2

154

0

0

Retired at 65

10

114

0

0

Northern Taiwan

54

393

111

286

Central Taiwan

1

76

0

2

Southern Taiwan

56

338

29

69

Total

111

807

140

357

The turnover rate

6.0%

8.1%

7.5%

7.7%

Age

RegionNote:(1) The number of resigned employees in the above table includes retired and laid-off personnel.
(2) The turnover rate is calculated by dividing the number of employees of that gender by the total number of employees of thatgender.

4.2.2 Employee beneﬁts and care
Employee Remuneration
The Company's remuneration is greater than the local minimum wage. Furthermore, in order to attract andretain talent, all salary is above the industry norm. The average employment cost for the Company in 2022 is
NT$ 1 , 390 , 180 , and the average annual wage adjustment during the last ten years is approximately 3 . 28 %.
The total pay adjustment would be 3 . 98 % if a ﬁxed amount of bonus was added.

（1）Average and Median Remuneration

In 2022 , the number of full-time employees who do not serve as manager as well as their average andmedian remuneration are as follows:
Company

NPC

Subsidiaries in Taiwan

Year

2021

2022

2021

2022

Number of employees who do not serve as manager (person)

12 , 035

12 , 124

6 , 650

7 , 093

Average remuneration of employees who do not serve as
manager (NT$ thousand/year)

1 , 410

1 , 238

1 , 199

1 , 182

Median remuneration of employees who do not serve as
manager (NT$ thousand/year)

1 , 369

1 , 161

1 , 169

1 , 134

Note: The calculation scope of remuneration is mainly based on the employees in Taiwan.

19108Ongoing
Sustainable
Governance
Strategy

Creating a
Happy
and Safe
Workplace

Green
Environment
Management
Promotion

Product
Value
Expansion

The Pursuit of
Co-Prosperity
and a Better
Homeland4

Appendix（2）Remuneration Ratio of Female and Male Employees

The pay scale for new employees is deﬁned by the qualities required for the role, such as education andwork experience. The basic salary ratio of female and male employees of at same position and grade is 1 : 1 .
After being hired, their income and grade will be altered year by year based on their work performance,
and they will be compensated accordingly.
Remuneration ratio of female and male employees with the same position andgrade at NPC and its Subsidiaries in Taiwan
Second-level supervisors(inclusive) and above

Female1%Male

1 . 24 %Entry-level supervisors(inclusive) and below

Female1%Male

1 . 23 %Note: In 2022, the number of male employees was higher than that of female employees. The difference in the gender ratio of
those who are second-level supervisors (inclusive) and above is due to the difference in seniority, and the difference in thegender ratio of those who are entry-level supervisors (inclusive) and below is due to the fact that most of the shift workers
who receive shift allowances are male.

NPC
Minimum wage for junior employees

Female31 , 498

Male

37 , 978

Local minimum wage

Female25 , 250

Male

25 , 250

Ratio of junior employees' standard
wage to local minimum wage

Female1 . 247 %Male

1 . 504 %Subsidiaries in Taiwan
Minimum wage for junior employees

Female31 , 498

Male

37 , 978

Local minimum wage

Female25 , 250

Male

25 , 250

Ratio of junior employees' standard
wage to local minimum wage

Female1 . 247 %Male

1 . 504 %Note: The government's statutory minimum monthly basic wage for 2022 is NT$25,250.

（3） Remuneration and Beneﬁts

Employee Remuneration and Beneﬁts of NPC
200 , 000 , 000

18 , 486 , 937

Unit:NT$ thousand

Employee Remuneration and Beneﬁts of
Subsidiaries in Taiwan
Unit:NT$ thousand

200 , 000 , 000

16 , 108 , 941
150 , 000 , 000

150 , 000 , 000

100 , 000 , 000

100 , 000 , 000

50 , 000 , 000

50 , 000 , 000

0

2021

2022

0

9 , 385 , 807

2021

9 , 711 , 093

2022

2022 Sustainability
Report2022年永續報告書20109Nan Ya Plastics Corporation

Employee Beneﬁts and Care
The Company continues to treat employees like family in order to giveall full-time employees peace of mind and allow them to fully unleash
their talents. Basic eating, lodging, and recreational facilities have beenplanned from the start of each plant's construction. Furthermore, many
comprehensive beneﬁt schemes have been developed with the longterm well-being of employees in mind.
The Company has established a number of employee benefits andincentive initiatives that exceed regulatory standards, including:
Leisure andPersonal
Development
Beneﬁts

Occupational Beneﬁts●

Vacation
beneﬁts● Insurance
beneﬁts● Wedding andchildcarebeneﬁts

For more details of beneﬁts andcare, please refer to "Employee
Beneﬁts" on NPC's website●

Healthcare beneﬁts
Staff cafeteria● Employee relationshippromotions● Personal safety andfamily care
● Expat beneﬁts

Retirement
Beneﬁts●●

Other general
beneﬁts● Self-learning
beneﬁts●

Retirement
beneﬁts● Retirement
Association

Furthermore, in order to implement the notion of a happy workplace, the Company has establishedbreastfeeding facilities within the plants in accordance with the legislation, as well as a friendly officeatmosphere for employees. A parental leave system is also available. Employees who qualify could alter
their work hours to accommodate their childcare needs. In 2022 , a total of 33 females and 22 men, totaling
55 employees, requested parental leave. The rate of reinstatement was 100 . 0 %.
Parental Leave Application and Reinstatement Rates in 2021 - 2022
Company
Item

NPC

Unit: Person

Subsidiaries in Taiwan

2021

2022

2021

2022

Female Male

Total Female Male

Total Female Male Total Female Male

Total

Number of employees
eligible for parental leave

30

331

361

31

459

490

13

87

100

30

194

224

Number of parental leave
applications received

33

15

48

20

25

45

14

12

26

34

10

44

Number of employees
who are expected to bereinstated during the year (A)

29

14

43

8

11

19

7

5

12

12

2

14

Number of reinstatement
applications received during
the year (B)

24

13

37

11

14

25

13

7

20

22

8

30

Reinstatement rate % (B/A)

82 . 892 . 986 . 0

100

100

100

100

100

100

100

100

100

Still employed more than ayear after their reinstatement

22

13

35

10

12

22

12

7

19

22

8

30

Retention rate %91 . 7100

94 . 690 . 985 . 788 . 092 . 3100

95 . 0

100

100

100

Note: Retention rate refers to the percentage of employees who are reinstated after taking a parental leave and staying for
more than a year.

19
110Ongoing
Sustainable
Governance
Strategy

Product
Value
Expansion

Green
Environment
Management
Promotion

Creating a
Happy
and Safe
Workplace

4

The Pursuit of
Co-Prosperity
and a Better
HomelandAppendix

Stable Pension System
Based on the employees' choice of the new or old pension plan for retirement security, the Company
distributes monthly payments to speciﬁc pension accounts. This makes it possible for the Company to pay
pensions to employees once they fulﬁll the legal requirements for retirement:
Old pension system(for those who choose the "Labor
Standards Act" retirement system):
4 % of the total monthly pay will bedeposited into a dedicated accountat the Bank of Taiwan. The totallabor pension reserve has grown to
NT$ 1 , 768 , 461 , 000 as of 2022 .

New pension syste(for individuals who choose the "Labor Pension Act"
retirement system): 6 % of the employee's individual
pay is deposited into the employee's personal pension
account. The cumulative pension contribution madeby the Company in 2022 was NT$ 324 , 637 , 000 .
Additionally, in 2022 , voluntary pension contributions were
NT$ 145 , 589 , 000 .

Valuing Employee Feedback
The Company strives for good labor-management interactions and offers a variety of free contact channels.
We also aggressively encourage staff to come up with new ideas. By joining organizations such as the labor
union and the Employee Welfare Committee, all employees may express their opinions and ideas. Currently,
79 % of all employees are union members.
During union council or board of supervisors meetings, as well as labor-management meetings, theCompany's employer representatives routinely contact with employee representatives. When it comesto signiﬁcant labor relations issues, the Company prioritizes the union's viewpoints, and all employees areprotected by the joint agreement between employers and employees. The following are the primarycommunication channels for the Company:
Face-to-face Communication
Regular labor union/Employee Welfare
Committee meetings (Board of
Directors and supervisor meetings/labormanagement relations meetings)●

Supervisor at
all levels

Written Communications● Written grievances

Human Resources Service Team
Public Announcement Letter●

Employee Assistance Program

●

Human
Resources

Management ofﬁce of each plant promoting logistics support and welfare
services● Employee Welfare Committee (regularperformance evaluation and satisfaction
survey)Board of Directors and
Top Level ManagementAll
employees

Internal Publications(electronic and hard copy)

Employee Voice Channels●●

799 hotline
Dedicated opinion mailbox and enterprise
information system - online mailbox

System2022 Sustainability
Report2022年永續報告書20111

Nan Ya Plastics Corporation

Communication results in 2022
Negotiations for year-end bonuses, pay raises, and other beneﬁts:

Labor union

45 meetings, 765 attendees

Employee Welfare
Committee

Welfare programs such as free meals for employees, holiday festivities,
vacations, children's scholarships, and club activities:

63 meetings, 579 attendees

4.2.3 Talent Training and Evaluation
NPC has established a comprehensive employee training system. Each stage of training is performed stepby step using the e-training management system. To achieve the training goal of developing all-aroundemployees, the existing training system could be separated into pre-employment training, basic job training,professional competencies training, reserve cadre training, job certiﬁcation, and cross-functional training
courses.

Employee Training System
Supervisory
level

First and second-level supervisor training

Resource andmaterial & ﬁnishedgoods training
Entry-level
personnel

Plastic
processing
training

Process
operation
training

Petrochemical
process
training

Polyesterﬁber processtraining

Machineryand electronicequipment
maintenance training
Safety and healthand ﬁre prevention
training

New
employee

New employee training

Plastics
processing
business
group

19
112

Chemicalengineeringbusiness
groupElectronics
material
business
group

Polyesterﬁber businessgroup

Directdepartment

Ongoing
Sustainable
Governance
Strategy

Creating a
Happy
and Safe
Workplace

Green
Environment
Management
Promotion

Product
Value
Expansion

The Pursuit of
Co-Prosperity
and a Better
Homeland4

Appendix

Employee Training and Evaluation
The Company arranges various education and training based on the features of various works in order to develop
the professions and management abilities of employees at all levels, as well as to provide training that is superior
to the legal requirements. In 2022 , the average amount of training hours per employee was approximately 44
hours. The average number of training hours was 10 for ﬁrst-level supervisors, 26 for second-level supervisors, 58 forentry-level supervisors, and 45 for entry-level staff. The following are the main courses and outcomes:
Professional Certiﬁcate Program(Occupational safety training)

Safety and Health Training(Basic occupational safety training)

Other Training Program

Purpose●Organize job-related professional
certiﬁcate certiﬁcation courses
in accordance with eachdepartment's operational and safety
requirements.

●●

Raise employees' awareness ofhuman rights and work safety

Enhance employees' professional
abilities

Strategies●

Announce the "Occupational Safety and Health Act", "Labor Standards Act", "Sexual Harassment Prevention Act", " Act ofGender Equality in Employment " and other related laws and management policies● Occupational safety education and training are offered for particular occupational hazard jobs, and all colleagues
involved in related businesses are expected to pass the training courses.
● Use the medium such as " 10 -minute on-site training", "communication sessions", "morning meetings" and "formal training" toeducate employees

2022 Results

36
Number of attendees: 1 , 296

84
Number of attendees: 3 , 845

Number of courses:

Number of courses:

Number of courses:

5

Number of attendees:

112

Note: The safety and health training includes ①occupational safety training ②basic occupational safety training. A total of 5,141 persons
participated in 2022, with a total of 42,774 hours of training.

Training Status for All Employees in 2019 ~ 2022
Company

Title

First-level supervisors

Unit: Hour

Second-level supervisors

Entry-level supervisors
Male

FemaleEntry-level personnel

NPC
Subsidiaries in
TaiwanYear

Male

Female

Total

Male

Female

Total

Total

Male

Female

Total

2019

15 , 063

22

15 , 085

48 , 791

1 , 679

50 , 470 186 , 104

2 , 664

188 , 768 464 , 744 92 , 194 556 , 938

2020

12 , 88955

12 , 944

37 , 674

709

38 , 383 186 , 634

3 , 390

190 , 024 446 , 429 92 , 195 538 , 624

2021

8 , 331122

8 , 453

29 , 601

577

30 , 178 166 , 961

2 , 663

169 , 624 432 , 843 87 , 401 520 , 244

2022

6 , 75930

6 , 789

28 , 206

555

28 , 761 169 , 316

2 , 089

171 , 405 398 , 207 74 , 470 472 , 677

2019

773

0

773

2 , 75464

2 , 818

18 , 503

1 , 370

19 , 873

94 , 773

38 , 167 132 , 940

2020

686

0

686

2 , 807150

2 , 957

15 , 246

1 , 351

16 , 597

90 , 144

36 , 743 126 , 887

2021

1 , 0140

1 , 014

2 , 525210

2 , 735

15 , 676

869

16 , 545

99 , 794

38 , 671 138 , 465

2022

1 , 1292

1 , 1313 , 498

243

3 , 741

19 , 184

958

20 , 142 122 , 618 45 , 489 168 , 107

Note: (1) Due to the epidemic in 2020-2022, the number of training hours was lowered.
(2) The Company belongs to the (plastic) secondary processing industry, and female employees generally serve in indirect jobs inofﬁce environments, requiring less professional training.

Training Completion Rate in All Stages in 2021 ~ 2022
Company
NPC
Subsidiaries in Taiwan

Items

Unit: %

Basic job training

Professional
competencies training

Annual training
program

2021

100

100

100

2022

100

100

100

2021

100

100

100

2022

100

100

100

Year

Note: The completion rate is the percentage of training subjects completed during the year.

2022 Sustainability
Report2022年永續報告書20113

Nan Ya Plastics Corporation

Employee Career Path●●

Cross-functional studies
Other courses (e.g. lifestyle andhealth seminars)●

Fundamental competency training
Professional competency training● Management trainee training● New supervisor studies● Other courses (e.g. lifestyle andhealth seminars)

Operation
Supervisors
First-levelsupervisors●

Second-levelsupervisors

Entry-levelsupervisors●

Fundamental competency
training● Professional competency
training● Competency training
certiﬁcation● Other courses (e.g. lifestyleand health seminars)

Entry-level
personnel

New employee●

Management trainee training
Middle-level supervisors cross-functional
studies● New supervisor studies● Other courses (e.g. lifestyle and healthseminars)●●

Fundamental competency
training● Professional competency
training● Management trainee training● Competency training
certiﬁcation● Other courses (e.g. lifestyleand health seminars)●

New employee
training● Other courses (e.g.
lifestyle and healthseminars)

Furthermore, the Company has included "regular performance evaluation" in its "Performance Review
Procedures" in order to improve job quality and foster a serious and responsible work attitude among
employees. Depending on their duties, employees are evaluated every 1 - 3 months. Employees are driven
to pursue improvement and create a self-challenging work environment through frequent job reviews.

Entry-level Personnel

Other Personnel

Regular performance evaluation process
Direct evaluation by the supervisor

Regular performance evaluation process
Those being evaluated will be required topresent a report on their current progress
toward meeting their annual goals and KPIs.

Those who perform well are instantly notiﬁed
and encouraged, while those who perform
badly are interviewed, guided, and coached
for improvements.

19
114

Direct supervisors will conduct face-to-faceevaluations and communicate with people
being assessed.

Ongoing
Sustainable
Governance
Strategy

Product
Value
Expansion

Green
Environment
Management
Promotion

Creating a
Happy
and Safe
Workplace

4

The Pursuit of
Co-Prosperity
and a Better
HomelandAppendix

Security Personnel Training and Digital Learning
Knowledge Management System&

The Company provides complete professional security training for all security
professionals to gain appropriate training certification, including "industrial safety,""security personnel work procedures," and "applicable laws and regulations." In addition,an e-learning system has been established to give our personnel different self-learning
channels. For further information, please see "Talent Development" on the NPC website.

"Talent Development" on
NPC's website

E-learning System

Employee self-learning

E-learning newspaper

Inherited corporate
knowledge

4.3 Workplace Safety
4.3.1 Workplace Safety Management
NPC has set up a distinct occupational safety and health organization to guarantee workplace safety. In compliancewith regulatory requirements, each production plant established an occupational safety and health committee
and got certiﬁcations for both the ISO 45001 Occupational Safety and Health Management System and the Taiwan
Occupational Safety and Health Management System (TOSHMS). 11 , 763 persons (including employees andcontractors) or 100 % of the total number of people in the plant benefited from the workplace safety promotion.
The inspection objectives include things like the environment on-site, employee operations, and equipment safety.
Additionally, the occupational safety management activities of subsidiaries in Taiwan have been carried out incompliance with NPC.
Occupational Safety Committee
Committee members: 341
Employee representatives
Employee representatives: 126 account for 37%, which is superior
to the statutory requirement
Meetings are held quarterly. Topics that were discussed in 2022 are
as follows:
recommendations on employer-developed occupational
1 Makesafety and health policies
and make suggestions on planning for occupational
2 Coordinate
safety and health management

3 Examine the training program for safety and health

Examine the on-site environment monitoring strategy, the results
4 ofthe monitoring, and the actions to be performed
issues related to occupational disease prevention,
5 Examinehealth promotion, and health management

6 Examine various proposals for health and safety

the self-inspection, safety, and health audit concerns in
7 Examine
production plants
the procedures used to prevent risks to machinery,
8 Examineequipment, or raw and processed materials

ISO 45001 Occupational Safety
and Health Management
System certiﬁcate

Taiwan Occupational Safety
and Health Management
System (TOSHMS) certiﬁcate

9 Examine the occupational injury investigation reportof on-site safety and health management
10 Assessment
performancethe safety and health management issues in the
11 Examine
contractual businesses

2022 Sustainability
Report2022年永續報告書20115

Nan Ya Plastics Corporation

Occupational Injury Indicators
In 2022 , all occupational accident indicators for the Company and its subsidiaries in Taiwan were lower than thoseof our peers(plastic products manufacturers) There were 5 disabling injuries. Under the classiﬁcation of occupational
accidents, there were 2 cases of "being hit", 1 case of "contacting with harmful objects", 1 case of "being trappedby the equipment", and 1 case of "being cut".
NPC

Subsidiaries in Taiwan

Plastic products manufacturers

Disabling
Injuries
Frequency
Rate (FR)Disabling
Injuries
Severity
Rate (SR)Frequencyseverity
Indicator(FSI)

Disabling
Injuries
Frequency
Rate (FR)Disabling
Injuries
Severity
Rate (SR)Frequencyseverity
Indicator(FSI)

Disabling
Injuries
Frequency
Rate (FR)Disabling
Injuries
Severity
Rate (SR)Frequencyseverity
Indicator
(FSI)

2021

0 . 2940 . 030 . 07

1

0 . 001 . 74177

0 . 552022

0 . 21

10 . 010 . 000

0 . 001 . 81157

0 . 53YearNote:(1) Disabling Injuries Frequency Rate (FR) = number of disabling injuries x 106 / total working hours(2) Disabling Injuries Severity Rate (SR) = working days lost to disabling injuries x 106 / total working hours(3) Frequency-severity Indicator (FSI) = (FR × SR / 1000) 1/2

Management and Prevention of Occupational Accidents

19
116

Description of accidents

Approach to the accidents

Improvement

On February 8 , the cotton plantstaff checked out the processarea's construction progress. The
weld bead of the ethylene glycol
pipeline on the upper right side of
the pipe rack suddenly cracked
when the personnel passed by thepolymerization process operation
area on the 4 th ﬂoor of Line 9 AB
(the horizontal distance is about
4 . 4 m). Because the 131 -D ﬁlter
was being cleansed with alcohol
at the time, the personnel was
splattered with ethylene glycol.

After washing himself, theemployee assumed there
was no severe concern.
However, on 2 / 9 , hewent to the hospital for
discomfort in his right eye
and was diagnosed with"inﬂammation of the corneaof his right eye." Following his
therapy, he returned home.

1 . The threaded tube served as the pipeline's welding
point, resulting in stress concentration and fractures. The
maintenance department re-piped and insulated thispiece of the pipeline in accordance with the requirements.
Furthermore, liquid ethylene glycol was pumped into thepipeline to prevent the alternation of hot and cold.
2 . It was discovered that the pipeline's support span was
excessively long (about 9 . 8 meters) and did not meet theCompany's piping criteria. On February 14 , four sets ofsupport hangers were ﬁtted in line with the requirements.

On May 29 , the operator of thepolyester ﬁlm plant II discovered alittle piece of damaged ﬁlm on the
coiler's cutter. He was concernedthat it might lead to cutting
mistakes, so he tried to remove it.
The cutting device thus trapped
his lower right arm (the SOP statesthat exception handling of the
cutting device during roll change
is banned).

With a diagnosis of"damaged tendons in
the lower right arm," heunderwent surgery andstayed in the hospital forobservation. On June 2 , hereturned to the plant.

1 . Build an automatic mechanism and a swing pedestrianturnstile gate at the operation position. Once the door is
opened, the ﬁlm-cutting device would stop operating. On
June 21 , the entire improvement project was ﬁnished.
2 . Use it as an example to encourage safe working practices
among employees.
3 . Strengthen "Safety Walk and Talk" by implementing walking
management, identifying potential risks, and changing
dangerous behaviors to eliminate hazards.

On June 22 , the operator of
Chiayi plant I was transporting
materials on the south side of theinjection facility with an electric
pallet truck. When reversing, he
only looked to the right rear anddid not realize that a mold truck
had been temporarily positioned
immediately behind him, leading
his left foot hit by the rotating rightmold truck and injuring his left calf.

The employee wasdiagnosed with a "ﬁbula
fracture at left calf and tearon the ligament of the left
ankle." He was hospitalized
after surgery on June 23 ,returned home on July 1 ,and returned to the plant on
July 11 .

1 . Lower the electric pallet truck's speed from 6 km/h to 4
km/h. The improvement was ﬁnished on July 7 . The remaining
16 electric pallet trucks had their improvements ﬁnished aswell.
2 . To alert people nearby to their presence, electric pallettrucks were initially equipped with warning lights and forward
and reverse buzzers. Reversing radar and alarms (beeps)
were installed to improve intrinsic safety.

On November 20 , an operator
from the second section of Chiayi
Plant II attempted to assist hiscolleagues in shutting down
production at the PG 27 BOPP
equipment's longitudinal extension
outlet. A coworker with a utility
knife injured him on the right handby mistake.

The employee wasdiagnosed with "injury toblood vessels and ligaments."
He stayed in the hospital forobservation after the surgery.
On November 24 , he wasdischarged from the hospitaland returned to work as
usual on November 25 .

1 . Safety knives must be utilized at the machine's exit of the
MDO area in order to minimize the risk associated with theuse of tools.
2 . Amended the BOPP machine operating guidelines torequire that all operators wear anti-cut gloves to protect theirhands. On November 28 , the amended SOP and the staff's
education and training were ﬁnished.

On 11 / 30 , the operator of the
FC 15 mixer at Renwu plant I was
assigned to disassemble the stirring
blade. His left hand slipped while
holding the lower stirring blade,causing the left horn of the lower
stirring blade to crush his left foot,injuring the his left sole.

The employee wasdiagnosed with "contusion of
the left foot and displaced
fracture of the second
metatarsal." After the surgery,he underwent observation in
the hospital on 12 / 1 , went
home on 12 / 3 , and thenreturned to the plant on
12 / 7 .

1 . The case was mostly caused by the personnel's discomfort
rather than a technical malfunction. However, the company
decided to expand the operational area for the stirring task,
increasing the platform from 80 cm x 110 cm to 80 cm x 170
cm. On December 7 , the entire project was completed.
Hanging may now be used to horizontally lift the stirring
blades to the cold mixing platform below, replacing manualwork.
2 . On December 7 , the employee was reassigned to theﬁnished product sector on the ﬁrst level to undertake arandom check of ﬁnished rubber products, eliminating theneed for him to climb up and down stairs and transport items.

Ongoing
Sustainable
Governance
Strategy

Creating a
Happy
and Safe
Workplace

Green
Environment
Management
Promotion

Product
Value
Expansion

4

The Pursuit of
Co-Prosperity
and a Better
HomelandAppendix

Occupational Injury Data from All Plants of the Company and Its Subsidiaries in
Taiwan in 2022
Type
Plant

Male

FemaleDisabling Injuries Disabling Injuries
Frequency Rate
Severity Rate
(FR)
(SR)

Frequencyseverity
Indicator (FSI)Disabling Injuries Disabling Injuries
Frequency Rate
Severity Rate
(FR)
(SR)

Frequencyseverity
Indicator (FSI)

Taipei

0

0

0

0

0

0

Shulin

0

0

0

0

0

0

Linkou1 . 84

7

0

0

0

0

Kung San

0 . 29

0

0

0

0

0

Jinxing

0

0

0

0

0

0

Mailiao

0

0

0

0

0

0

Chiayi1 . 0020

0 . 14000Hsinkang

0

0

0

0

0

0

Renwu

1 . 17

70 . 0900

0

5 occupational injuries happened to male employees.
cases of "being hit", 1 case of "contacting with
Description 2
harmful objects", 1 case of "being trapped by theequipment", and 1 case of "being cut".

No female employee was involved in any
occupational injuries.

Management Principle for Contractors
1 . Before the commencement of construction, the supervising and entrusting departments shall confirm
whether there are any changes in the workplace environment, potential risks, construction methods, etc.,
and list the safety notices in the " Information for Construction Safety ".
2 . Prior to construction, the supervising department must hold a pre-construction consultative meetingwith the entrusting department and explain the notices listed in the " Information for Construction Safety" to the person in charge of the contractor (or the person in charge of the construction site) and thesafety and health management personnel. To ensure that the contractor has comprehended thepotential hazards and has adequately prepared for safety and hygiene procedures, the " Information forConstruction Safety " must be signed in person.
3 . After the plant's safety and health department (or the designated safety and environmental protection
department) has reviewed and confirmed the content of the safety notification, the supervisorydepartment should supplement and re-notify it according to the above procedure if any deﬁciency isfound and considered to be explained.

Occupational Injury Indicators of Contractors
Total Working Hours and Days
Year

Total
Working
Days

Total Working
Hours

2022

495 , 194

3 , 961 , 550

Number of
Accidents

Total Days
Lost

Disabling
Frequency
Rate (FR)Disabling
Severity
Rate (SR)Frequencyseverity
Indicator (FSI)4

6 , 413

1 . 01

1 , 618

1 . 27

Note: The deﬁnitions of the indicators are the same as employees' occupational injury indicators

2022 Sustainability
Report2022年永續報告書20117Nan Ya Plastics Corporation

In 2022 , there was 1 occupational accident at the Mailiao ethylene glycol plant that resulted in the death of acontractor and 3 occupational injuries. The following is a description of the content:
Description of accidents

Approach to theaccidents

Improvement

On April 25 , as a laborer employed by
the ethylene glycol plant's subcontractor(EG 4 ) (OOEngineering Company) was
extracting perlite powder from the coolbox, it became loose and slipped due
to a 9 -meter height differential, and theworker was buried. (At the time, his air
mask had come off.)

The worker
died despite
being taken
to the hospitalfor emergency
care.

1.Management improvements:
Manufacturers have been required to incorporate the dangers
of asphyxia, collapse, burial, and subsidence owing to unevenstacking density when persons operating in the tank in JSA analysis
and develop better countermeasures.
2 .Equipment improvements:(1)Change the material of equipment, such as the manhole atthe top of the cold box, the goose neck exhaust vent, and therelief valve, to stainless steel to avoid corrosion and holes, which
could lead to freezing after rain penetrates.
( 2 )Enhance staff inspections by adding PDA inspection locations
to the top of the cold box.

The phenol liquid tanker driver at theMailiao BPA plant aided his colleagues
on 3 / 11 in relocating the open-type
phenol liquid receiving barrel to theoutside of the containment dike. The
bottom of the barrel collided with thecement pier of the containment dike
during the movement, causing thephenol liquid in the barrel to pour out
and burn the driver's left buttock.

The person
1.Equipment improvements:
was diagnosed(1) Short-term practice: The phenol liquid receiving barrel has beenwith chemical
capped to make it sealable.
burns on his(
2)Long-term
practice:left buttock.
● Before running the pump, change the exhaust mode to
After beinga closed-loop system.
discharged from● To prevent personnel from coming into touch with the leftover
the hospital on
liquid, the receiving joint is converted to a dry disconnected
March 24 , hecoupling with a backstop function.
went back towork on April 15 . 2 .Management improvements: Increase education and training
for material handlers, and emphasize the importance of workers
wearing full-body C-level protective apparel.

On March 14 , a Mailiao propylene
glycol plant contractor (OO Company)
employee accidentally touched theisolation valve while removing theinsulating iron sheet of the low-pressure
condensate recovery barrel, causing thenozzle to crack. As a result, the employee
was burned by the hot water ( 98°C).

The person was 1.Equipment improvements:
found to have(1)The nozzles were repaired quickly and the leak was stopped.
22 % secondThree other nozzles with similar problems were ﬁxed after adegree burns.
comprehensive evaluation.
After being( 2 )After the examination, the recycling bin was severely depleted
discharged fromand will be replaced during the next regular inspection in
the hospital on
November 2023 .
March 16 , hereturned home. 2 .Management improvements:(1)Increase awareness at the toolbox meeting about the importanceof wearing protective equipment while accessing construction
areas where hazardous materials may be encountered.
( 2 )For operations involving high temperature and corrosive
dangers, the on-duty manager and supervisor must visit the site
to ensure its safety, and construction can commence only when
the construction order is approved.

On 10 / 19 , the Shulin security department's
contractor (OO Company) cleaned thefence monitoring system on a regular basis.
He fell after mistakenly stepping throughthe rain shelter while climbing the work
ladder to the top of the storage room andwalking on the rain shelter ( 2 . 5 m high)towards the detector.

He wasdiagnosedwith a "neckinjury and headlaceration"and is currently
hospitalized.

1 .The security department is expected to undertake a complete
review in addition to increasing the education and training of
entrusted department workers. If there is an error, the application
should be rejected.
2 .Raised awareness among security colleagues by requiring safety
supervisors to collaborate with contractors and set up checkpoints
before, during, and after construction. If a case violates the initialapproved construction category, it should be amended anddeleted as soon as possible.

4.3.2 Process Safety Management

NPC promotes 14 -key Process Safety Management (PSM) procedures in compliance with business regulations. It has
hired 83 PSM personnel at various levels, all of whom have acquired legal process safety assessment staff certiﬁcatesand receive regular refresher training. They are committed to promoting and regulating PSM management operations
throughout departments, as well as ensuring the quality of PSM activities. The following is the management work content:Monthly

Annually

19
118

●

Conduct monthly audits based on the 14 PSM key items to ensure that all plants meet therequirements in following the standard procedures and work practices● Safety management's KPIs are reported monthly to effectively control PSM risks (Taiwan only)●

Select departments with high-performing safety culture (awards: PHA, MOC, Implementation of SOP- full participation) to attend FPG awards ceremony on behalf of the Company and to enhance theoverall safety cultureOngoing
Sustainable
Governance
Strategy

Product
Value
Expansion

Creating a
Happy
and Safe
Workplace

Green
Environment
Management
Promotion

4

The Pursuit of
Co-Prosperity
and a Better
HomelandAppendix

Process Hazards Analysis, PHA
Since 2012 , NPC has contracted the American Sphera Company (previously IHS Company) to manage PHA
Facilitators' training and certiﬁcation in order to improve the quality of process hazard analysis activities. A
total of 18 persons (seed personnel) are qualiﬁed as PHA facilitators, assisting PHA instruction and training to
be extended to all plants. Every month, the PHA assessment team at each unit conducts PHA operations.
PHA facilitators then visit the facility to provide instruction and evaluate the quality of operations, with thegoal of identifying potential workplace hazards and effectively controlling process risks.
The Hazard and Operability Analysis (HzaOp) was separated into normal and abnormal operations forevaluation in 2021 . In 2022 , we kept promoting the detailed evaluation of six primary types of abnormal
operations: emergency or abnormal shutdown, online maintenance, begin production/shutdown, pumpswitching, and ﬁlter removal, to ensure that process risks and hazards may be thoroughly examined.
Production sites in Taiwan
Internal auditor
Progress

Executed by the PHA facilitators using the cross-audit method
Quality inspection of 58 plants (ofﬁces) was completed in 2022 . Continue
to review the implementation of process risk assessment, analyze potential
hazards and the effectiveness of safety protection, and re-examine the
PHA using investigation reports from previous events.

Process safety incidents over the years
Year

Unit

Process Safety Incidents Count(PSIC)

NPC

Subsidiaries in Taiwan

2021

2022

2021

2022

Cases

1

0

0

0

Process Safety Total Incident
Rate (PSTIR)%

0 . 0090

0

0

Process Safety Incident Severity
Rate (PSISR)%

0 . 009000Management of Change, MOC
To ensure that any changes in design, equipment, raw materials, or operating conditions do not harm
the process, the Company establishes process safety management personnel in each department tocontrol management change operations and review procedures to ensure compliance with corporate
regulations. The target scope of the MOC was further widened in 2021 to encompass construction workers
for the "ﬁxed asset auction" and computer source management in the preliminary stages of "Process Trial
Production" at each plant. Process modiﬁcation projects identiﬁed in the "Hazardous Workplace Review andInspection Measures" were included in corporate regulations for implementation in 2022 , and to improve
management, the breadth and depth of audits will continue to be strengthened.
In addition, a monthly on-site conﬁrmation of the accuracy and comprehensiveness of the MOC analysis
will be carried out by designated members of the Safety and Health Department's staff and the businessdivision's MOC personnel.
Production sites in Taiwan
Internal auditor
Progress

Executed by the PSM personnel in each department using the cross-audit method
In 2022 , the quality inspection of 59 plants (ofﬁces) was completed. It has been
proven that the MOC review and assessment can clearly identify hazards, andregulate operation and improvement effectively, and the Company will continue
to undertake pre-production/pre-commissioning/(operation) safety inspections.

2022 Sustainability
Report2022年永續報告書20119Nan Ya Plastics Corporation

Job Safety Analysis, JSA
Organizational and systematic analysis techniques are used to evaluate the potential risks of personnel
operations and construction operations in the workplace and then take the necessary precautions. This
serves as an essential foundation for the work safety analysis operations of various departments in NPC.
In order to verify the accuracy of the work safety analysis and the quality of the work, personnel from the
Safety and Health Department will visit the plant for inspection once a month.
Production sites in Taiwan
Internal auditor
Progress

Inspection from personnel of the Safety and Health Department
The quality inspection of 59 plants was completed in 2022 . In the future, wewill continue to strengthen JSA hazard identiﬁcation, risk assessment, andcontrol, and regularly track and control the progress of various improvements.
We will also strengthen the implementation of education and training after
JSA assessment and on-site review.

Industrial Safety Protection Promotion Cases in 2022
The promotion scope: Taiwan
The promotion
item

1.To improve the intrinsic safety of the equipment, install movable guardrails (shields)
or interlocking devices at the entrance of controlled areas in every plant.
2 .Inspect the disassembly and assembly activities, as well as the tool safety.
3 .Ask for self-evaluation and improvement reports from business units withdeteriorating industrial safety management KPIs.

The promotion
result

The Company's total number of disabiling injuries has been reducing year
by year ( 16 cases in 2019 , 10 cases in 2020 , 8 cases in 2021 , and 5 cases in
2022 ).

Standard Operating Procedure, SOP
In order to ensure that each department of the Company implements the SOP and all employees
participate in the promotion of the SOP, the Company revises the contents of potentially hazardous and thecorresponding SOPs on a regular basis based on the results of the work safety analysis, which is expected tosigniﬁcantly improve the safety of on-site operations.
To assure the performance of SOP promotion, each unit holds "SOP review and revision seminars," "SOP
amendments and training," "SOP case studies and feedback surveys," "SOP audits," "plant inspections andobservation meetings," and "KPI assessment standards and performance reviews" on a regular basis. Safety
and health personnel, as well as executives from each department, would collaborate to conduct onsite
inspections to verify the integrity of the implementation.
Production sites in Taiwan

19120Internal auditor

Joint inspection by personnel from the Safety and Health Departments, aswell as personnel responsible for supervising SOP from each department

Progress

In 2022 , the quality inspection of 74 plants (ofﬁces) was completed.
Continue to quantify SOP control points and apply SWAT to improve SOP
implementation.

Ongoing
Sustainable
Governance
Strategy

Product
Value
Expansion

Green
Environment
Management
Promotion

Creating a
Happy
and Safe
Workplace

4

The Pursuit of
Co-Prosperity
and a Better
HomelandAppendix

4.3.3 Controlled Chemicals Management and Disaster
Prevention Training
Management of Controlled Chemical SubstanceAccording to the Environmental Protection Agency's announcement, there are 51 chemical substances handled
by NPC that are classiﬁed as controlled chemical substances (of which 16 chemical substances are handled insmall quantities and only used for laboratory research and testing). To ensure the safe production, use, storage,
and transportation of controlled chemical substances, the handling sites and facilities of each plant are all
operational, and factors such as regulatory compliance, operational risks, and disaster prevention have all
been considered before use. In addition to acquiring approval documents from the competent authority inaccordance with regulations, reported activities, pipeline marking, and so on are included in each department's
self-inspection items.

Safety Management of Controlled Chemical Substance● Hazard prevention, emergency response plans, and emergency response drills (including unscheduled tests)
Each plant assesses potential disaster losses by applying PHA analysis and develops "rescue speciﬁcations."withreference to the "SDS Data Sheet," and frequently analyzes the contents of the "hazard prevention andemergency response plan" for appropriateness.

Continue to undertake unscheduled tests and overall drills, as well as collaborate with county and city
governments to conduct large-scale observation drills. 37 emergency response drills for EPA-controlled hazardous
compounds were held in 2022 , including simulated notice, evacuation, disposal, and follow-up activities. The
following are the training objectives:( 1 )Be familiar with the process of emergency response drill.
( 2 ) Increase the utilization of emergency response and protection equipment.
●

Disaster drill for toxic chemical substances in 2022
Date

2022 / 6 / 9

Location

Topic

Participate in a disaster rescue drill (Min-An No. 8 drill) involving the toxic
Hsinkang site chemical substance dimethylformamide in conjunction with the Chiayi County
Government.

2022 / 7 / 14

Shulin site

Participate in the emergency response drill (Min-An No. 8 drill) for toxic chemical(vinyl chloride) storage tank rupture in conjunction with the New Taipei City
Government.

2022 / 9 / 1

Renwu site

Drill for toxic response in Renwu site.

2022 / 10 / 20

Mailiao site

The response drill for a ﬁre accident caused by combustible (toxic) gas leaking
from the EO scrubber (C- 115 ) during a power outage in the EG- 4 plant.

2022 / 11 / 11

Jinxing site

Fire drill involving a chemical spill in the 2 F cleaning section of Nan Ya PCB Plant I.

2022 / 12 / 23

Mailiao site

Fire drill for simulating poison ( 1 , 3 -butadiene) pipeline leakage.

●

Professional response personnel were trained in accordance with the "Regulations on the Management ofEmergency Responders of the Toxic and Concerned Chemical Substances" in 2022 . They were assigned totraining based on the evaluation results of the controlled chemical substance categories and the maximum
daily operation volume of each process operation. Currently, 94 people are registered on the Environmental
Protection Agency website ( 10 at the specialist level, 11 at the incident commander level, 44 at the technician
level, 22 at the operations level, and 7 at the awareness level), and another 22 are reserve personnel who canquickly supplement the vacancies in professional response manpower.

Green Chemistry Promotion
On November 30 , 2021 , the Company agreed to an exclusive interview with the Toxic and Chemical Substances
Bureau for the "Green Program" to explain the Company's promotion and research and development of
Non-Phthalates, such as the technique of hydrogenating DEHP and DINP into DHEH and DHIN, respectively.
Furthermore, since October 2015 , the Company has been studying and developing DINT, an environmentallyfriendly plasticizer; the development was approved by the Environmental Protection Agency for New Chemical
Substances Standard Registration Level 3 in October 2021 . Related work is still being promoted.
2022 Sustainability
Report2022年永續報告書20121

Nan Ya Plastics Corporation

Disaster Prevention Training
Each plant not only performs regular disaster prevention training but also participates in joint practice drills fromthe competent authorities in order for the emergency response teams to better understand the hazardous
variables and potential threats in each process. Emergency rescue operations are replicated based on thenature of the tasks, such as ﬁre, poisoning, chemical disaster, and compound catastrophes. In response to poor
air quality, the Company partnered with the local environmental protection department this year to organize
air pollution emergency response drills.
The Company's emergency response strategy is divided into three phases based on the magnitude of theincident and practical requirements:
Plant-level emergency
response

Vice President of Management
Dept. at Mailiao Industrial Complex
Plant Emergency Response HeadCommander

Divisional-level emergency
response

Assistant Manager at theincident-occurring department
Plant Emergency Response
Deputy Head Commander

Command Center (personnel)
1.Onsite President's Office
2.Management Office
3.Safety and Health Division
4.Department where theabnormality occurs
5.External Support Unit

MedicalCare Team

Supply Team

External Supporting
Units (In-house Fire
Prevention Team)Fire
Extinguishing
Unit

SafetyProtection
Team

Onsite Emergency
Response
Commander

Onsite Fire Prevention
Commander

Reporting andCommunication
Unit

Evacuation
Guidance Unit

Reporting andCommunication
Team

Evacuation
Guidance
Team

Other
Supporting
Units

Assistant to the Emergency
Response Commander

SafetyProtection Unit

Medical Care
Unit

Rescue Unit

In-house Fire Protection TeamTo ensure that, in the event of a large fire, neighboring plants are instantly contacted and that firefighting
equipment and manpower can be used to assist one another. At each plant, in-house ﬁre protection teams
have been established. The teams are externally trained and participate in emergency response drills every six
months to improve their ability to respond to emergencies.

In-house Fire
Protection Team
Onsite Fire
Protection Team19
122

In-house Fire Protection Team at Mailiao
Industrial Complex
430 members and 2,011 reserve members
from FPC, NPC, FCFC, and FPCC

<Training>
Cooperate with the ﬁre protection
team from FPCC to conduct live-ﬁretraining at Mailiao Industrial Complex

In-house Fire Protection Teams fromother plants
532 members<Training>
Personnel are dispatched to Nantou
Zhushan Training Center of Natithe
onal Fire Agency and Minghu
Training Base of Hsinchu City toundergo ﬁreﬁghting skill trainingOngoing
Sustainable
Governance
Strategy

Product
Value
Expansion

Creating a
Happy
and Safe
Workplace

Green
Environment
Management
Promotion

4

The Pursuit of
Co-Prosperity
and a Better
HomelandAppendixExternal Transportation Safety
Management
approach

Evaluation

Education
and Training

Descriptions●

The transportation contractor for theCompany must ﬁrst pass the "Safety Quality
Assessment System (SQAS)" evaluation andacquire a certiﬁcate of conformity (every
three years).

●

Qualiﬁed contractors must get annual
assessments based on their assessment
level.(Grade A contractors are evaluatedevery two years, while grade B contractors
are evaluated every year.)2022 Implementations●

A dynamic audit of tank trucks in the Mailiao plant
was performed in the fourth quarter. At the loading
and unloading station, eight items were inspected,
including the tank truck body, on-board equipment,
and documents. A total of 43 things were found to
be normal, while 13 were found to be aberrant. All
deviations have been corrected.

●

Since the Company's hazardous chemicals carrier's
existing certiﬁcate will expire in May 2023 , it intends
to conduct the carrier evaluation process in 2023 ,including the ﬁrst-stage paper review, second-stage
interview, and third-stage manufacturer Site survey (forthose applying for evaluation for the ﬁrst time).

Regular safety review meetings are held
Personnel admission into the plant is prohibited duewith all plants. On occasion, meetings withto the Company's epidemic prevention strategy, andcontractors are held to examine and analyze the monthly publication of trafﬁc accident cases toall accidents.
transportation manufacturers in each plant area has
been shifted to an online approach.
●Rescue drill●

Each plant regularly holds disasterprevention training Participate in joint drills
held by the competent authority from time
to time.

The major drill is the "Taiwan Responsible Care
Association's (TRCA) Cross-regional Mutual Aid.

Participate in joint drills held by thecompetent authority on a regular basis.

NPC adheres to the various procedures and operating standards established by Formosa Plastics Groupto ensure the safety of transportation operations and lower operational risk. These include "Transportation
Safety Management Measures" and "Emergency Response Management Measures," which are put into
practice through evaluation, education, training, and rescue simulations.

4.3.4 Employee Healthcare
NPC employs systematic thinking and organizational methods to continuously promote health promotion
measures to provide employees with a healthy and safe working environment, good training plans, andtraining systems so that employees have clear goals to follow, allow them to fully utilize their talents, andencourage their willingness to actively participate.

Health Risk Management
In order to create a workplace that allows employees to work in peace, the Company summarizes"psychosocial", "physical", "chemical", "biological", and "human factors" as ﬁve major hazards that may leadto occupational diseases based on the characteristics of its own industry and organization, after referring tothe ﬁve categories of the Ministry of Labor's "Occupational Disease Reference Guide". The company thendevelops appropriate preventive management activities and offers health inspection items that exceed
laws and regulations.
To protect our employees' health, NPC not only implements the health assessment items stipulated by law
but also provides four additional examination items that exceed the statutory standards. Furthermore, allemployees who work in operations that are more likely to threaten health are subjected to a speciﬁc healthexamination and health classiﬁcation management. In 2022 , no anomalous cases of occupational disorders
were discovered in the speciﬁc health examinations.

2022 Sustainability
Report2022年永續報告書20123Nan Ya Plastics Corporation

Category of hazard

New practices in 2022

Ongoing practices

Results●

Hazard factors of
psychosocial stressLong working hours,
working pressure---

Identify high-risk populations,schedule medical interviews andhealth counseling, and modify work
content based on physician advice.
● Consistently carry out healthinspection, management, andpromotion.
●

Hazard factors ofphysical stress
Abnormaltemperature,Ionizing
radiation---

Routine health examinations
Consistent monitoring of the working
environment● Provide employee health counselingto raise knowledge of risk factors.
●●

Hazard factors ofchemical stress
Dust, organic solvent,strong acid, alkali, etc.

---

Routine health examinations
Consistent monitoring of the working
environment● Provide employee health counselingto raise knowledge of risk factors.
●●

Hazard factors of
biological stress
Microorganisms,
infectious diseases, etc.

---

Hazard factors ofergonomic stress
Long-term heavy lifting,etc.

The Company cites the German
Key Indicator Methods (KIM) afterreferring to the Ministry of Labor's"Research Program on Prevention ofHazards Caused by Human Factors",
and evaluates on-site manual
handling operations to improve thehigh-risk ones. (such as replacing withmachinery, adjusting the working
position, etc.)

Take prompt action to avoid mutual
infection if there is a chance of an
infectious disease spreading.
● Enhance publicity and awarenessabout infectious disease prevention.
● Plant cleaning, disinfection, andenvironmental inspections shall be
performed on a regular basis bydedicated people from each plant.

In 2022 , noanomalous
cases ofoccupational
disorders werediscovered in
the speciﬁc
healthexaminations.

●

Identify high-risk populations,schedule medical interviews, andundertake additional reviews andimprovements in ergonomic factors if
the risks are associated with work.
● Regularly implement healthmanagement methods.

Occupational Disease Prevention Measures
The following initiatives have been put in place by the company to comply with the Occupational Safety
and Health Act's preventive regulations against emerging occupational diseases: protection of maternal
health, prevention of musculoskeletal diseases brought on by repetitive work, prevention of illegal activity
while on the job, and prevention of diseases brought on by abnormal workload.
Occupational Disease Prevention
Measures19
124

Details

Protection of maternal healthThrough hazard assessment and controls, physician assistance, graded risk
management, and special work arrangements, female employees are
safeguarded from maternal health threats during pregnancy and for one
year following childbirth.

Prevention of musculoskeletal diseases
brought on by repetitive work

Preventing musculoskeletal illnesses caused by bad posture, excessive
exertion, repetitive actions, and other variables through the implementationof relevant ergonomic factor improvement strategies.

Prevention of illegal activity while on
the job

To achieve zero violence in the workplace, prevent employees from being
threatened or attacked in work-related environments by implementing
methods such as danger identification and assessment, job suitability
arrangement, hazard prevention, and communication skills training.

Prevention of diseases brought on byabnormal workload

Preventing brain and cardiovascular illnesses caused by irregular work hours,
lengthy work hours, frequent business trips and shifts, and other factors.
Employees will be provided health counseling, work-hour adjustments, andjob content changes to help them manage their health.

Ongoing
Sustainable
Governance
Strategy

Green
Environment
Management
Promotion

Product
Value
Expansion

Creating a
Happy
and Safe
Workplace

4

The Pursuit of
Co-Prosperity
and a Better
HomelandAppendix

Health Promotion Measures
In the plants, medical personnel have been stationed to provide personal health instruction and consulting.
Weight management, tobacco hazard prevention, health seminars, preventative healthcare, and injury/
illness treatments are all available to employees. Furthermore, medical and health services supplied by
Chang Gung Memorial Hospital have been incorporated to improve employees' health awareness evenfurther. To preserve the health of employees, onsite physicians examine the work environment, employees'
work habits, and safety protection practices to make ideas for improvement and give associated medical
consultation services.
General health examination items thatare superior to statutory requirements●

Alpha-fetoprotein test●

Screening for oral cancer●

Screening for prostate cancer●

Cancer embryo antigen test●

Static ECG test

Speciﬁc health examination items
12 items including high temperature, noise, ionizing
radiation, lead, tetrachloroethane, dimethylformamide,n-hexane, benzene, TDI compounds, arsenic and its
compounds, dust, and chromium.
15 items including noise, ionizing radiation,
dimethylformamide, benzene, dust,
tetrachloroethane, n-hexane, lead, toluene
diisocyanate, butadiene, chromium, manganese,
mercury, nickel, and arsenic.

NPC employee healthexamination frequency

2022 Implementations

Employees who
underwent a general
health examination:
Employees who
underwent a speciﬁc
health examination:
Employees who arebeing supervised bylevel two or higher
management inspeciﬁc healthexaminations:

4 , 873 people
3 , 053 people

1 , 035 people

Employees who
participated in healthpromotion activities:

Under 30

Once every 5 years

30 to 45

 Once every 3 years

45 to 65Once every 2 years

Over 65

Once every year

（Partially superior to statutory requirement,
superior to statutory requirement）

4 , 873 people

Healthy Diet Promotion
Every month, we publish dietary nutrition facts to support healthy eating. We changed the cooking
processes, condiment usage, food selection, and menu with the help of nutritionists at Chang Gung
Memorial Hospital. Fried foods account for less than 6 % of the total. In 2022 , the staff restaurant offeredabout 1 , 290 dishes per month, 75 of which were fried (fried dishes ratio was 5 . 81 %).

2022 Sustainability
Report2022年永續報告書20125Nan Ya Plastics Corporation

Post-epidemic Prevention and Management
The "COVID- 19 Response Unit" was established by NPC on February 11 , 2020 . The commander is the Vice
President of the President's Office, and the executive officer is the Assistant Vice President. They are in
charge of the President's Ofﬁce, which includes Management Team I, Management Team II, the Human
Resource Team, Safety, Health, Materials, and Shipping. Review sessions on COVID- 19 preventative work
was held on a regular basis until the epidemic was gradually lifted.
To prevent and control the potential hazards of COVID- 19 and avoid disruption of the Company's
operations due to cluster infections, corresponding contingency plans for domestic epidemic were
formulated after review at the epidemic prevention session, based on commonality, personnel, production
and sales, materials, ﬁnished products, and engineering, etc., while also keeping track of the health statusof colleagues, contractors, and related personnel.

The epidemic prevention and control measures in 2022
The major epidemic prevention and control measures
Company-wide inspection of the health of all
employees and the pandemic situation

Confirm the operational
status with all production
sites on a daily basis

Provide epidemic
prevention supplies forthe plant area

Attendance
rate

Disinfectant

Numberofemployees
resuming
work

Production
andsales status

RubbingalcoholEarthermometer

Follow preventive measures from the Central Epidemic
Command Center (CECC) to ensure the health andprotection of all employees
Avoid unnecessary business travels
Access to office buildings or plants is restricted unlessnecessary
All personnel entering office buildings or plants shouldhave their body temperatures taken and their hands
sanitized
Use tele- or video-conferencing in place of in-person
meetings
Wear medical masks at all times
Check the inventory of epidemic prevention materials
Monitor the health of onsite personnel and implement
access control
Implement control measures against those withheightened COVID risks and conduct PCR tests whennecessary (paid by NPC)
Epidemic prevention plans should be drafted before
foreign technicians are permitted onsite (regarding
scope of activity and health management for employees that they come in contact with)
Implement staggered work shifts or work off-site

Achievements in workplace health and caring in 2022

NPC was awarded the "GoldAward" for 2022 Manufacturing
Happy Enterprise by the 1111
Job Bank.

The Kun San site was awarded
the "Badge of Accredited
Healthy Workplace" in 2022 .

19
126

Ongoing
Sustainable
Governance
Strategy

Creating a
Happy
and Safe
Workplace

Green
Environment
Management
Promotion

Product
Value
Expansion

The Pursuit of
Co-Prosperity
and a Better
Homeland4

Appendix

4.4 Supplier and Contractor Management
Prioritizing Local Procurement Principle
The procurement and contracting policies of the Company and the subsidiaries in Taiwan prioritize local
procurement and contracting.Foreign procurement and tendering occur only when local ones areunavailable. The domestic procurement ratio during the last two years is as follows:

The Ratio of Local Procurement of Subsidiaries
in Taiwan in 2022

The Ratio of Local Procurement of
NPC in the Past 2 Years
The ratio of domestic
procurement (%)
100

The ratio of overseas
procurement (%)

80

80

60

60

40

40

15

20
0

13

20
0

2022

2021

The ratio of overseas
procurement (%)

100

87

85

The ratio of domestic
procurement (%)

99

78
53

47

22

13
1

NPCB

PFG

NCPC

The Ratio of Local Procurement of
Subsidiaries in Taiwan in the Past 2 Years
The ratio of domestic
procurement (%)

The ratio of overseas
procurement (%)

79

80
70
60
50

50

50

40
30

21

20
10
0

2021

2022

Furthermore, relevant operations will continue
to leverage electronic transactions to fulfill
the goal of developing an open, fair, and justprocurement and contracting framework.
Through the sound contractor management
method, the Company can eliminate subpar
contractors while fostering long-term excellent
partners.

2022 Sustainability
Report2022年永續報告書20127

Nan Ya Plastics Corporation

4.4.1 Supplier Management
Supplier Sustainability Issues
The Company follows the philosophy of perpetual commercial operation and fair-trade during procurement
processes. The Company is committed to requiring suppliers to adhere to environmental, occupational,
and human rights standards. If a supplier fails to meet these conditions, their items will be rejected, and the
supplier will be included in the vendor review. The following is the procurement procedure:

Supplier procurement process
Sustainable regulations

Requesting
department ﬁles
procurement
application

Establish
supplier
database

Supplier/
Contractor
Socialresponsibility
commitment

Open tender fromthe purchasing
department

Delivery,inspection,
payment

Formulate andsign contracts

Supplier evaluation

Supplier/
Contractor
Socialresponsibility
surveyCheck the following delivery conditions based on
procurement needs:● RoHS Compliance● Nations-mandated industrial safety qualiﬁcations● Obtained ISO certiﬁcate● Labeling or marks for hazardous substances areincluded● Used containers or loading equipment should beproperly recycled● Prioritize the procurement of products
manufactured by the disabled● Non-radioactive certiﬁcates are included

The following speciﬁcations
are used to evaluate thevendors:● Delivery (installation)
overdue● Poor quality● Violation of safety
requirements/social
responsibility commitment

Furthermore, traditional invoices have been replaced by e-invoices in order to cut expenses and improve
management efﬁciency. So far, more than 83 % of suppliers have used e-invoices, which has greatly saved
both parties' time and costs of manual labor, as well as the costs of stamps and paper.
The Ratio of Local Procurement of NPC
Traditional invoice ratio (%)

Traditional invoice ratio (%)

Electronic invoice ratio (%)

100

100

83 . 72 %

80

60

60

40

40

0

16 . 28 %2021

16 . 52 %

2022

20
0

Electronic invoice ratio (%)

89 . 97 %88 . 67 %83 . 48 %

80

20

19
128

The Ratio of Local Procurement of
Subsidiaries in Taiwan

11 . 33 %2021

10 . 03 %2022

Ongoing
Sustainable
Governance
Strategy

Green
Environment
Management
Promotion

Product
Value
Expansion

Creating a
Happy
and Safe
Workplace

4

The Pursuit of
Co-Prosperity
and a Better
HomelandAppendix

Contractor Sustainability Issues
A contractor rating system has been established to strengthen safety management, control contractor
quality, improve contractor occupational safety requirements, and avoid injuries to their personnel.
The contracting department refers to the contractor rating system throughout the tender process.
Furthermore, the Company has designated safety and health management expenses as a compulsory
budget expense for the outsourced operation. During the tender process, the Company examines safety
and health management expenses in addition to contract speciﬁcations and computer control. To avoid
contractors compromising safety and health management for price considerations, management charges
cannot be less than the budget.

Suppliers

Contractors

In order to distinguish between manufacturer levels
and give a reference for price comparison and ﬁnal
purchase in purchasing instances, the quotation data
and delivery records of manufacturers that havedelivered more than 6 pieces each month for nearly
two years are computed and scored.

Collect pertinent data for different manufacturersof professional engineering, such as looking into
and assessing factory locations, construction
machinery and equipment, construction site safety
management capabilities, technical capabilities,
past performance, etc.

Appraisal items

Assessment items●●

Delivery (installation) overdue●

Defective rate●

Violation of industrial safety regulations/social
responsibility commitments●●●

Factory site
Site safety
management
capability
Past performance
Construction schedulemanagement

●
●
●
●

Construction
equipment
Technical capabilities
Construction quality
Legal contract

2022 Supply Chain Management Practices
Since October 1 , 2019 , the "Supplier/Contractor Social Responsibility Commitment" and "Supplier/Contractor
Social Responsibility Survey" have been developed one at a time and are given to vendors when they log
into the Formosa Technology E-Market Place or place an order. Vendors are required to sign and respondto documents, as well as follow any restrictions.
Simultaneously, to ensure that dealers respect the FPG's procurement and outsourced operating standards,
ﬁercely reject the occurrence of collusion in bidding (quotation), bribery, favoritism, and fraud. Since the"Integrity and Confidentiality Commitment Letter for FPG Suppliers" was developed, suppliers have beenrequired to download the commitment letter from the supplier section of Formosa Technology E-Market
Place, sign it, and reply to the Company; if the letter is not responded to, it will be included in the supplier's
ranking assessment, which is set as the priority reference when ordering. There were 3 , 393 domestic
purchase producers in 2022 , with 3 , 358 having signed the letter of commitment and a response rate of
98 . 97 %. We will continue to demand non-responding producers to adhere to our company's policies in the
future. The following is our manufacturer's response rate:
Social Responsibility
Commitment

Social Responsibility Survey

81 . 42 %2021

99 . 26 %2022

74 . 95 %2021

94 . 75 %2022

Integrity and Conﬁdentiality
Commitment Letter for FPG
Suppliers

2021
2022

55 . 93 %98 . 97 %2022 Sustainability
Report2022年永續報告書20129

Nan Ya Plastics Corporation

4.4.2 Contractor Safety Management
To protect the safety of the workplace environment, the Company requires contractors to follow occupationalsafety and health laws and regulations, and safety and health management staff have been set up. Before
entering the plant, the contractors must complete safety and health instructions as well as danger identiﬁcation
training. The company also encourages contractors to be self-sufﬁcient in order to accomplish zero disaster targets
through mutual trust and cross-supervision. The Company has used the following management techniques toprovide a platform that encourages constructive, bilateral communication and coordination:
Organizing
Coordination Meetings

Personnel Access
Management

Organizing Toolbox
Meetings

Implementing
Regular Audit

To work safely, exchange
information with vendors
about workplace hazards
and any improvement
proposals.

Access control can beused to limit the numberof workers. Furthermore,in order to improve safety
and health awareness,
contractors must be taught,
trained, and tested before
entering the workplace.

Contractors will be warnedof potential risks andhazards that may occur
during operations before
entering the plant eachday. In addition, the mental
status of the workers ischecked on a daily basis
to avoid work-related
incidents.

Contractors must follow
the Company's safety
and health rules as well as
applicable legislation. If ananomaly is detected during
the audit, a review meeting
will be scheduled the sameafternoon to resolve theissue and prevent it fromoccurring again.

In addition, to strengthen the safety management of contractors and ensure workplace safety, the Company also
promotes the following operations:
Item

Safety Supervisor

Promotion periods

Main features

2022
Implementation

19
130

Mailiao Industrial
Safety & Quality Assessment
Complex Occupational
System (SQAS)
Safety Joint Inspection

Since 2012

Education and Training

Since 2011

Since September 2011

Since 2006●

Conduct safety supervision
before, during, and after
construction● Accompany thecontractor in conducting
self-inspection before theoperation, and report theabnormal construction of
the contractor●

Contractors who fail the
SQAS evaluation may
not undertake or pick up
hazardous substancesfrom NPC● Each transport vehicle
that passed the SQAS
evaluation will beequipped with GPS ordash cam. The vehicle
must be equipped withregularly inspected
protective devices basedon the characteristics ofthe hazardous substances

Formosa Plastics Corp.,
Nanya Plastics Corp.,
Formosa Chemicals
and Fibre Corp., andFormosa Petrochemical
Corp. were convenedby the Safety, Healthand Environment Centerto form a joint inspection
team to inspect thestart-up and shutdown of petrochemical
process, the regular
maintenance, theﬁre accidents, theoccupational disasterprevention, etc. in
Mailiao Industrial
Complex

The plant sitemanagement ofﬁce(section) shall take
into consideration the
training requirements ofthe plant contractors,
hold meetings withpertinent departments
to determine training
dates and training
times, etc., assign
plant safety ofﬁce
or plant safety andhealth management
professionals to guidethe training programs
and assess thetraining personnel's
performance

●

●

●

●

There were 4 workplace
accidents involving
contractors. (including
one fatal occupational
accident) It demonstrates
the need for improved
safety supervisor
supervision and inspection
before, during, and after
operations.
● Thorough construction
supervision is strictly
required of safety
supervisors, and regularinspections by plantsafety staff are alsoessential. The supervisor
will be reported anddisciplined in accordancewith the regulations of
the Company if any
abnormality occurs.

Prepare for a
dynamic audit of
the 6 transportation
manufacturers' tank trucks
at the Mailiao site. At theloading and unloading
station, 8 items, including
the tank truck body,on-board equipment,
and documents, were
inspected. 13 irregularities
were discovered,including the absenceof ﬁrst aid kits andportable documents withemergency response
instructions and contact
information.
● All 13 irregularities havebeen ﬁxed, and theabnormal cases havebeen promoted toother transportation
manufacturers as
instructional resources.

There were 3
workplace accidents
involving contractors
in Mailiao site.
(including one
fatal occupational
accident), indicatingthat supervision needs
to be strengthened.
● Continue to improvejoint inspections andon-site supervision,
give priority to auditing
projects with higher
risks (such restrictions
or contact withhazardous substances,etc.), and conduct
thorough inspections
with strict ﬁnes.

A total of 4 , 592 , 398
hours of contractor
training have been
completed.
● Statistics show that
this year, there havebeen 4 workplace
accidents involving
contractors. To
raise worker safety
awareness, theevaluation ofcontractors' training
and performanceneeds to be
improved.

Ongoing
Sustainable
Governance
Strategy

Product
Value
Expansion

Green
Environment
Management
Promotion

chapter

Creating a
Happy
and Safe
Workplace

5

4

The Pursuit of
Co-Prosperity
and a Better
HomelandAppendix

The Pursuit of
Co-Prosperity
and a Better
Homeland

5.1 Local Engagement

133

5.2 Social Contribution

141

2022 Sustainability
Report2022年永續報告書20131

Nan Ya Plastics Corporation

NPC is dedicated to social investment, actively encourages good neighborliness and local care, and collaborates
with FPG in taking part in numerous public welfare activities in order to have a social impact, support community
development, and work together to create a sustainable and beautiful future.
Strategy●

Neighborhood outreach●Expand social engagement

2022 Goals

United Nations Sustainable Development Goals (SDGs)

2022 Implementations（Did not meet the goals;Goals met;
Exceeded expectations）

Short-term Goals( 2023 Goals)

Medium- and Long-term
Goals ( 2024 ~ 2030 )Neighborhood Outreach and Social Engagement Expansion●●

Continue toorganize a voluntarycleaning team.
Schedule one day
per month to clean
the roads aroundthe production sites
and the community
environment beforeworkIn 2022, a total of 30 environmental
volunteer activities (street sweeping)were held, and 601 volunteers
participated (965 hours of volunteer
service)

Actively promote
corporatevolunteers to carefor disadvantaged
groupsIn response to the New Taipei City
Government's "Enterprise Joint Beach
Cleanup", a beach cleanup washeld at the beach in Wanli District on
9/17, International Coastal Cleanup
Day, with participation from 6
companies(a total of 600 persons)River cleaning at Nankan Riveron 10/16 and 11/05, about 3,900
employees and their families
responded to ecological protection
together
A corporate volunteer team wasformed at each plant site to assist
vulnerable populations (orphanages
and elderly homes). In total, 22
events were held in 2022, resulting
in 390 participants(1,558 volunteer
service hours), and a donation of
NT$1,408,535●

Continue to organize
a voluntary cleaning
team. Schedule one
day per month toclean the roads aroundthe production sites
and the community
environment before
work

●


Actively promote
corporate volunteers tocare for disadvantaged
groups●
NPC organized anumber of "Thousandsof people plant thetrees in whose shade
another generation
rests" events and invitedstaff members andtheir families to plant
trees with us to reducecarbon emissions andcarry out environmental
ESG initiatives.

●


Continue to organize
various neighborhood
outreach and charity
activities●

Enhance the promotionof traditional arts

Donate Wilderness No. 2 to The
Society of Wilderness to support
ecological restoration efforts andenvironmental education together.

The Company has long taken on the role of a corporate citizen, investing in the community in order to uphold its
corporate social responsibility. Through the inﬂuence of Formosa Plastics Group (FPG), we want to build a visionof shared prosperity and a better country. To protect the environment at the Mailiao Industrial Complex, forinstance, FPG not only established specialized research groups to carry out environmental monitoring and effectassessment but also offered people free healthcare and promoted environmental literacy.
The management teams at every plant also arrange local outreach initiatives such as occasional visits,
traditional culture promotion, charitable work, and assistance for underprivileged groups. Employees are also
encouraged to participate in local environmental cleanup efforts and charity ﬂea market events as corporate
volunteers, which will improve relationships and communications with the community. Additionally, it works intandem with FPG's corporate plans to promptly give back to society, pushing initiatives such as the "Formosa
Lohas Circle" and collaborating with seven foundations and charitable trusts to carry out various charitableendeavors.
19
132

Ongoing
Sustainable
Governance
Strategy

Product
Value
Expansion

Green
Environment
Management
Promotion

The Pursuit of
Co-Prosperity
and a Better
HomelandCreating a
Happy
and Safe
Workplace5

Appendix

5.1 Local Engagement
5.1.1Community OutreachAll sites of the Company promote various community outreach activities in line with the planning from local
management teams. We hope to spread love and hope to all corners of society with residents through these
activities, and to strengthen the ties between the plants and the local communities. Using the northern sites in
Taiwan as an example, the community outreach initiatives we supported in 2022 were as follows:
Item

VisitsTraditional
CulturePromotion

Collaborative Unit

2022 Results
Each plant site has kept up excellent
ties to the neighborhood. There are nogrievances or recommendations●


Local villageofﬁces●Strengthening communication throughoccasional visits●

Residents●
The residents are invited to plant activities
to foster stronger ties

Apple Theater(Shulin site)

Sponsoring theater companies to perform at
the plants

Large-scale neighborhood outreachefforts have been temporarily
postponed due to COVID- 19 and willtake place when the pandemic is overParticipate actively in township, village,
and community development association
events to foster connections with the local
communities.

Sponsorship amounted to NT$ 2 , 052 , 873

Enlist employees of each plant and theirfamilies to do environmental protection
volunteering work to keep the plants as wellas the surrounding areas clean●
A total of 30 environmental volunteer
activities of street sweeping were held,of which 601 volunteers participated●River cleaning at Nankan River on
10 / 16 and 11 / 05 , about 3 , 900
employees and their families responded
to ecological protection together●

In response to the New Taipei City
Government's "Enterprise Joint Beach
Cleanup", a beach cleanup was heldat the beach in Wanli District on 9 / 17 ,International Coastal Cleanup Day,
with participation from 6 companies(atotal of 600 persons)●
A total of 22 charity service activities
were organized with 390 participants,
and total donations amounted to NT$
1 , 408 , 535●

The "Ching Pao P.D. Charitable
Foundation" emergency relief fund hasan NT$ 71 , 000 application amount.

Ming Hwa Yuan
Arts and CultureGroup (Jinxing site)●

Community
OutreachPromotion Method●●
Township Ofﬁce
Village OfﬁceCommunity
development
associations

Employees andtheir families ofeach plant

Environmental
Protection
Volunteering

Charity Service●Charity Service
Club of Welfare
Committee●
Pay frequent visits to nursing homes andorphanages. Products are gathered andgiven to social welfare institutions●

Labor union●Flea markets were held in collaboration
with the Charity Service Club of Welfare
Committee and local public welfare
groups. The entire amount was contributed.

●

Assist underprivileged groups in requesting
emergency relief from FPG's Ching Pao P.D.
Charitable Foundation.

●

Local social
welfare groups

Prepare New Year's delicacies for the elderly who live alone
on the eve of the Chinese New Year

Spreading love, and providing warmth in the winter2022 Sustainability
Report2022年永續報告書20133

Nan Ya Plastics Corporation

19
134

Volunteers lead singing and dancing

Environmentally friendly street sweeping activities

People clean up the beach in Wanli District in relays

The results of the "Enterprise Joint Beach Cleanup"

Environmental protection spreads downward throughparent-child beach cleaning.

Environmental protection volunteers from NPC and thecommunity (Changxing Village) worked together to sweep
the streets.

Volunteer at Nankan River Cleaning Activity

Pick up garbage at river cleaning activities

Ongoing
Sustainable
Governance
Strategy

Product
Value
Expansion

Green
Environment
Management
Promotion

Creating a
Happy
and Safe
Workplace

The Pursuit of
Co-Prosperity
and a Better
Homeland5

Appendix

Fulfilling Responsibilities and Achieving Community CoProsperity-"Formosa LOHAS Circle" and the Special Actions
In order to promote local economic development, promote local tourism, andfoster local co-prosperity, FPG plans to use the idea of a "circle" to bring together
local resources near the plant site, including communities, small farmers,
businesses, and local governments. This will help to infuse Taiwanese society withmore positive energy.
Taoyuan is where the "Formosa LOHAS Circle" begins. There are currently five
LOHAS circles in Taiwan: Taoyuan, Yilan, Yunlin, Kaohsiung, and Changhua. Eachhas developed a variety of travel activities. Please refer to the "Formosa LOHAS
Circle" "Live Circle" ofﬁcial website for further details.

Ofﬁcial website for "Formosa
LOHAS Circle"2022 Performance
After taking into account that the "YangMei Leisure Farm" has been practicing organic planting for a while and island-friendly, NPC collaborated with Formosa Environmental Technology Corp. and Organic Education Museum
to plan a number of food and agricultural as well as ecological educational activities on the vacant land outside
the YangMei Leisure Farm. To further advance the ideas and spirit of organic planting, environmental education,and good for the land, groups of all levels are welcome to take part in the aforementioned activities. The
Company also works with organizations including YangMei Leisure Farm, Yangmei Senior High School, YangMei
Leisure Agriculture Area, and Taiwan Conservation Association of Native Fishes to protect Taiwan's native species.
For instance, Lij Chin Huang, a plant expert from The Society of Wilderness, was invited to assist in conducting
quarterly plant surveys; an ecological pond was built in the YangMei Leisure Farm, allowing students to learn
about ecological pond construction, the importance of habitat protection, the threat of invasive species, andthe need to restore native aquatic plants of Taiwan. We intend to put a lot of effort into fostering biodiversity andprotecting Taiwan's native species by offering the YangMei area as a site for environmental education. In 2022 ,the Company has invested about NT$ 20 , 050 , 250 in total (Including gift tax and any relevant taxes for donatingland). The details of the activities are as follows:
Unit: NT$A

Project

Activities for organic ecological environment education and promotion, as
well as ecological pool care and management

Resources invested

Manpower: 5 / Amount: NT$ 144 , 000

Outputs

Number of events held: 56 / Participants (people): 1 , 687 / Volunteer services provided: 0

Substantial inﬂuences

Encourage environmental education so that more people realize the signiﬁcance ofenvironmental conservation

B

Project

Working holidays and ecological pool construction

Resources invested

Manpower: 10 / Amount: NT$ 3 , 250

Outputs

Number of events held: 5 / Participants (people): 31 / Volunteer services provided: 0

Substantial inﬂuences

Through practice, encourage the public and students to participate inenvironmental education

Project

Ｃ Habitat guardian for Wilderness NO. 2(The amount is calculated by taking the land
value announced in 2022 of NT$ 19 . 503 million plus
NT$ 400 , 000 in associated taxes and fees.)

Resources invested

Manpower: 2 / Amount: NT$ 19 , 903 , 000

Outputs

Number of events held: 2 / Participants (people): - / Volunteer services provided: 0

Substantial inﬂuences

Conserve habitats to preserve biodiversity

Total

20 , 050 , 250
2022 Sustainability
Report2022年永續報告書20135

Nan Ya Plastics Corporation

Yangmei Leisure Farm event photos

19
1362022.2.12 Working holiday: The Society of Wilderness
teacher Lij Chin Huang led a plant ecological survey on
Yangmei Leisure Farm.

2022.07.16 Environmental Education: Work with Yangmei
Senior High School students to construct an ecologicalpond as part of the preparations for the restoration of
Taiwan's native aquatic plants.

2022.7.24 Environmental Education: Conduct ecologicalpool improvement activities with Yangmei Senior HighSchool teachers and students.

2022.10.15 Working Holiday: Remove the alien American
crayﬁsh from the ecological pond to protect Taiwan's
restored native aquatic ﬂora.

2022.11.19 Working holiday: Remove the alien Leucaena
species from the Yangmei Leisure Farm to protect Taiwan's
natural plants.

The present status of Yangmei Farm Ecological
Demonstration Pool rehabilitation in 2022.

Ongoing
Sustainable
Governance
Strategy

Product
Value
Expansion

Green
Environment
Management
Promotion

The Pursuit of
Co-Prosperity
and a Better
HomelandCreating a
Happy
and Safe
Workplace5

Appendix

Special Action - Collaborate with NGOs to preserve the environment
In response to the global ESG biodiversity issue, NPC donated a piece of land in the Xiushan section of Xizhi
District (belonging to the Dajian Mountain in Xizhi) to "The Society of Wilderness," a domestic NGO groupconcerned with ecological conservation, to jointly promote its purpose of "Guardian Habitat." In addition toproviding land, the Company actively bore the land value increment tax created by the donation. On June
25 , 2022 , a certiﬁcate of appreciation was given to the Company. In the future, the Company will work withThe Society of Wilderness to cooperatively safeguard habitats and establish the foundation by promoting
environmental education. The preliminary strategy is as follows:

Ongoing ProjectLand
Donation for
Wilderness
No. 2

●

Future Plan
The Societyof Wilderness
announced
survey results
and highlights.

Carry out
ecologicalresearch

The donation results were announced
to members on June 25 , 2022 , during
The Society of Wilderness' 27 th annual
conference, and certiﬁcates of appreciation
were awarded.

●

From July to August 2022 , two formal
excursions were conducted, and specialists
and scholars such as Mr. Chih-Mou Li, who
are well-versed in the humanities and natural
ecology of the Xizhi District, were invited toparticipate in the on-site exploration.

●

The survey results were fruitful, recording
a wide range of unusual plants as well asanimal excrement and activity traces.

Promoteenvironmental
education and, if
necessary, carryout ecologicalrestoration●

In the future, infrared sensor cameras
will be deployed to correctly record
animals and their behaviors.

●

Corporate volunteers will be
introduced in the future to participate
in long-term Wilderness NO. 2 activities
and devote themselves to sustainablebusinesses such as environmental
conservation and biodiversity.

Certiﬁcates ofappreciation

2022 Sustainability
Report2022年永續報告書20137Nan Ya Plastics Corporation

Event photos

2022.6.27 The Society of Wilderness awarded a certiﬁcateof appreciation to NPC for giving land in Dajian Mountain,
Xizhi, New Taipei City as "Wilderness No. 2" during its 27th
Annual Conference.

2022.7.28 An environmental research of Wilderness No.
2 was done under the direction of core cadres of The
Society of Wilderness.

2022.8.17 For Wilderness No. 2, the Society of Wilderness
carried out a second ecological and environmental survey.

2022.8.17, Creek crabs were discovered in the wild stream
at Wilderness No. 2 during the ecological research.

5.1.2. Sustainable Development of Mailiao
Environmental Impact Assessment of Mailiao Industrial Complex
FPG has established specialized research units such as the "Evaluation andAdvisory Committee on Mailiao Industrial Complex Impact on Air Quality" and"Marine Ecological Impact Assessment and Advisory Committee" in responseto the public's growing concern over the impact of air pollution in the Mailiao
Industrial Complex and the need for further research into the marine ecologicalimpact of wastewater discharge. In order to instantly trace the emission
sources and ensure the local air quality is acceptable, a reliable environmental
monitoring network has been established. This network is equipped with eightlayers of intense monitoring and control systems. Please refer to "The Beauty ofMailiao Eco-industrial Park" and Environmental Protection and Safety" on theofﬁcial FPG website for further information.

19
138"Corporate Social
Responsibility" section on
FPG's website

Ongoing
Sustainable
Governance
Strategy

Product
Value
Expansion

Green
Environment
Management
Promotion

Creating a
Happy
and Safe
Workplace

The Pursuit of
Co-Prosperity
and a Better
Homeland5

Appendix

Healthcare for Mailiao Residents
Since 2009 , National Cheng Kung University has been hired to carry out 64 health risk evaluations resulting
from dangerous air pollution in order to protect locals' health. The simulation results show that all of the
maximum total noncarcinogenic hazards of the evaluations are less than 1 , indicating that the impact onhuman health is acceptable. The Yunlin Chang Gung Memorial Hospital was also constructed. We hope to
improve the healthcare and medical quality in the surrounding communities and establish Mailiao as thebenchmark for the medical community by combining the medical and educational resources within the
Chang Gung Memorial System.
Health Research

Health Survey●●

Building and maintaining
health database● Health data analysis● Results sharing

Resident's health trends
Health concerns ofresidents and the
public● Care promotion
measures●

Healthcare
for Mailiao
Residents

Health Examination●

Abnormality
management● Increasing the rateof follow-up medical
appointment● Diagnosis and treatment● Annual follow-up

Healthcare●

Enhancing medical
quality● Improving residents'
health● Joint promotion frompublic and private
sectors

Healthcare Progress in 2022
Target

Healthcare
ProgramNumbers of people

There were 143 , 371 outpatient visits, 14 , 931 ER visits, and 18 , 351 inpatient beds every
medical service day. The scope and size of services will be steadily expanded in order to continually
improve medical quality in Yunlin coastal areas.

Residents

healthexaminations
and follow-up
diagnosis andtreatment

healtheducation
activities
Teachers
andstudents

In 2022 , 13 , 421 residents took part in health examinations, and 1 , 133 were tracked andtreated for abnormal health examinations, helping residents to better understand theirhealth state through health examinations, detect potential illness threats early, andreceive early treatment.
Residents of ﬁve townships are screened for signiﬁcant ailments such as "hepatitis,""metabolic syndrome," and "chronic obstructive pulmonary disease." In 2022 , a total of
2 , 059 residents from ﬁve townships participated in disease screening activities, according
to statistics.
In 2022 , 10 communities and 223 elders were joined to execute the "Presentation of theSummer Camp for the Elderly," a continuation of last year's ﬁrst summer camp activity
for the elderly. It is thought that encouraging experience sharing will have the effect of
attracting better ideas and making everyone healthier as a group.
Health education activities were held in seven different townships in 2022 , with a
total of 5 , 531 residents participating. There were also smoking prevention courses
for junior high and elementary school students, with a total of 1 , 950 participants.
Together, 565 teachers and students from Mingli Elementary School in Mailiao
Township, Luchang Elementary School in Sihu Township, Dongshi Elementary School
in Dongshi Township, and Sihu Elementary School in Sihu Township responded to"Community
the John Tung Foundation's Happy-Running Project to encourage kids to form Healthcare" on FPG's
exercise habits and actively promote community health.
websitePlease refer to "Community Healthcare" on FPG's website for more details on healthcare for residents in Mailiao.

2022 Sustainability
Report2022年永續報告書20139Nan Ya Plastics Corporation

Improving the Local Life Quality
TrafﬁcImprovements

Noise
Management

Air Quality

Purpose●To maintain good trafﬁc conditions
in communities near Mailiao
Industrial Complex and ensure thesafety of school children●

To effectively manage noises
from production processes at
Mailiao Industrial Complex●

To preserve the air quality in
Yunlin County●

Diesel vehicles are required tosubmit an emission certiﬁcate
when applying for Mailiao Industrial
Complex's access permit●

In 2022 , 163 diesel vehicles wereintercepted all were qualiﬁed

Practices●

Implement a vehicle diversion
system for access to and from
Mailiao Industrial Complex,
and arrange volunteers to help
maintain trafﬁc safety at adjacentintersections●

Perform regular noise monitoring
operations in nearby areas

Results●

Trafﬁc is smooth near Mailiao
Industrial Complex duringcommuting hours, and thesafety of school children has
been improved●

The monitoring results showthat the operation of Mailiao
Industrial Complex has not hada signiﬁcant noise impact on
the local community

According to the statistics of diesel vehicle exhaust inspection conducted by the Environmental Protection
Bureau of Yunlin County in 2022 , 163 diesel vehicles on the roads around Mailiao Industrial Complex wereintercepted and 82 were inspected, all were qualiﬁed. Inspection results in the past 4 years are as follows:Year

Trafﬁc Volume

Number ofInterceptions

Number ofInspections

Number of
Qualiﬁed
VehiclesFailure Rate ofInterceptions

Failure Rate ofTrafﬁc Volume

2019

1 , 245

438

80

80

0.0%

0.0%

2020

1 , 511

597

82

82

0.0%

0.0%

2021

1 , 502

167

85

84

0.6%

0 . 01 %2022

1 , 341

163

82

82

0.0%

0.0%

Note:
(1) Trafﬁc volume: the quantity of diesel vehicles that passed through the inspection section during the Environmental Protection
Bureau's inspection period.
(2) Number of interceptions: the number of diesel vehicles that the Environmental Protection Bureau stopped and examined at
the side of the road.
(3) Number of inspections: the number of diesel vehicles that are intercepted that also generate black smoke and are inspected.
(4) Number of unqualified vehicles: refers to a vehicle that is being inspected that does not meet the statutory exhaust andopacity emission standards for diesel vehicles.

19
140

Ongoing
Sustainable
Governance
Strategy

Product
Value
Expansion

Green
Environment
Management
Promotion

Creating a
Happy
and Safe
Workplace

The Pursuit of
Co-Prosperity
and a Better
Homeland5

Appendix

Promoting Local Industry
FPG commissioned experts to provide recommendations to locals who work in the
agriculture and fishing industries in the Mailiao, Taixi, Dongshih, Sihu, and Kouhu
areas in order to protect their livelihood and realize our vision of local co-prosperity.
Our objective is to raise the economic value of agricultural and fishing products.
Additionally, we want to encourage the sustainable management of local ﬁsheries andfoster intergenerational prosperity in the Mailiao area.
Change farmers' habitsof seeking traditional
methods and reestablish the conceptof scientiﬁc-based
farming management
Use scientiﬁcmanagement tohelp farmers andﬁshermen overcome
weather adversities"Social Engagement"
on FPG's website

Assist farmers
and ﬁshermen to
receive organicand traceability
certiﬁcation

Increase the quality andvolume of agriculturaland ﬁshery products, andincrease the proﬁtability forfarmers and ﬁshermen

Research and develop
new technologies toreduce the usage of
agricultural chemicals

Organize exhibitions
and marketing events
to promote agriculturaland ﬁshery products

Promote online
marketing to cut out
the exploitation frommiddlemenNote: For details on agricultural and ﬁshery counseling, please refer to "Social Engagement" on FPG's website.

5.2 Social Contribution
FPG has actively engaged with the government and a number of private organizations
to better understand social issues and to care for and aid underprivileged groups inorder to put the two founders' philosophies into practice. FPG keeps helping those inneed by providing resources for education, healthcare, and social welfare. The Group
Administration of FPG plans all significant charitable initiatives, and NPC promptly
promotes and carries out pertinent programs. Please see "Foundation and Charity Trusts"
on the FPG website for further information on how they are implemented.

"Foundation andCharity Trusts" on
FPG's website

5.2.1 Medical and Educational Promotion
The two FPG founders believed Taiwan lacked
adequate medical resources. They made thedecision to start a non-profit teaching hospitalat the level of a medical center based on theirgoal to give back to society. After 40 years ofarduous work, they have successively established
the Chang Gung Memorial Hospitals in Taipei,
Linkou, Keelung, Kaohsiung, Chiayi, Taoyuan, andYunlin, offering integrated healthcare including
preventive medicine, acute care, chronic care,traditional Chinese medicine, long-term care, andwellness community.
Beginning in 1963 , Ming Chi Technical College(now known as Ming Chi University of Technology),
Chang Gung College of Medicine (now known
as Chang Gung University), and Chang Gung
Institute of Nursing (now known as Chang Gung
University of Science and Technology) weresuccessively established to cultivate talent in theﬁelds of industry, medicine, and nursing.

"Sustainable development"
section on Chang Gung
Memorial Hospital's website

Chang Gung University's
website" Sustainable development ofCorporate Social Responsibility"
section on Ming Chi University ofTechnology's website

Chang Gung University of
Science and Technology's
website2022 Sustainability
Report2022年永續報告書20141Nan Ya Plastics Corporation

5.2.2 Social Assistance
The two FPG founders established seven foundations and charitable trusts as part of their active involvementin promoting social welfare. FPG works to reduce personnel and administrative expenditures in order tofocus donations on social welfare and needy groups. Additionally, FPG engages with academic institutions,professional associations, and experts to advance numerous social welfare initiatives that adhere to theprinciples of "comprehensive, thorough, and systematic".

Foundations and Charitable Trusts

Wang Jhan Yang
Charitable Trust Fund
⸺ Founder ⸺

Wang Chang-Gung
Charitable Trust Fund
⸺ Founder ⸺Mr.
Yung-Ching Wang

Mr.
Yung-Tsai Wang

Wang Jhan-Yang Social
Welfare Foundation
⸺ Founder ⸺

Mr. Yung-Ching Wang
Mr. Yung-Tsai Wang

Ching Pao P.D. Charitable
Foundation
⸺ Founder ⸺Mr.
Yung-Ching Wang

Ching Pao Charitable
Trust Fund
⸺ Founder ⸺
Ms. Pao-Chu Lee

Ming-DeFoundation

⸺ Founder ⸺

Mr. Yung-Ching Wang
Mr. Tsung-Han Shen

Jin-che Indigenous
Foundation
⸺ Founder ⸺

Mr. Tian-Tsai Lee
Mr. Chao-Lin Yang

"Foundation andCharity Trusts" on FPG's
website

19
142

Wang Jhan Yang
Charitable TrustFund's website

Ching Pao Charitable
Trust Fund's website

Wang Jhan-Yang
Social Welfare
Foundation's website

Ching Pao P.D.
Charitable
Foundation's website

Ongoing
Sustainable
Governance
Strategy

Product
Value
Expansion

Green
Environment
Management
Promotion

Creating a
Happy
and Safe
Workplace

The Pursuit of
Co-Prosperity
and a Better
Homeland5

Appendix

Appendix

Appendix 1 ESG Comprehensive Performance

144

Appendix 2 Global Reporting Initiative (GRI) Comparison
Table

155

Appendix 3 Sustainability Accounting Standards Board(SASB) Comparison Table

159

Appendix 4 Corporate Governance Evaluation ESG
Indicator Disclosure Item

162

Appendix 5 Rules Governing the Preparation and Filing of
Sustainability Reports by TWSE Listed
Companies-Plastics Industry

163

Appendix 6 Independent Assurance Opinion Statement

1642022 Sustainability
Report2022年永續報告書20143

Nan Ya Plastics Corporation

Appendix 1 ESG Comprehensive Performance
Economic co-prosperity
NPC Consolidated Operating Performance
Items

2019

Unit: NT$ thousand

2020

2021

2022

Operating revenue

286 , 303 , 059

273 , 353 , 806

411 , 670 , 391

355 , 183 , 300

Operating costs

258 , 165 , 832

233 , 757 , 892

307 , 825 , 083

301 , 274 , 899

Proﬁt before tax

26 , 689 , 030

30 , 437 , 740

103 , 463 , 955

47 , 550 , 832

Retained Earnings

204 , 105 , 146

212 , 630 , 726

273 , 458 , 343

247 , 505 , 467

2 . 91

3 . 24

10 . 25

4 . 056 . 25 %7 . 55 %21 . 60 %9 . 35 %2 , 781 , 360

932 , 021

1 , 812 , 450

7 , 649 , 368

The ratio of remuneration paid to Directors to the net income

Unit: NT$ thousand

EPS(NT$)
Return on Equity (%)
Total tax paid of the parent
company (Exclude business tax)

Data source: NPC 2022 consolidated ﬁnancial statements

Company
NPC

Item

2019

2020

2021

2022

Remuneration of Directors

24 , 759

24 , 267

23 , 783

23 , 783

The ratio(%)

0 . 110 . 090 . 030 . 03

Data source: The ratio is the remuneration paid to Directors to the net income

Implement Status of Anti-Corruption of the Company and subsidiaries in Taiwan Overthe Past 4 Years
NPC

Item

Subsidiaries in Taiwan

2019

2020

2021

2022

2019

2020

2021

2022

Total number of reported cases

2

1

0

1

0

0

2

1

Number of reported cases related to
anticorruption policy

0

0

0

0

0

0

0

0

Number of cases that violate anticorruption policies after investigation

0

0

0

0

0

0

0

0

Number of completed pieces

2

1

0

1

0

0

2

1

Note: The scope of assessment and disclosure includes all the business locations in Taiwan

Statistics of Internal Audit of NPC Over the Past 4 Years
Item

Unit: case, %

2019

2020

2021

2022

Number of audit items performed

48

51

52

52

Number of abnormalities found

10

11

10

11 NoteAbnormality improvement rate

100

100

100

100

Note: 11 abnormalities were found in 2022, of which 4 were production and sales abnormalities; 1 were supplies and engineering
abnormalities; 4 were personnel and administrative abnormalities; and 2 were ﬁnance. None of which was material, and all
have been improved.

19
144

Ongoing
Sustainable
Governance
Strategy

Product
Value
Expansion

Green
Environment
Management
Promotion

Creating a
Happy
and Safe
Workplace

The Pursuit of
Co-Prosperity
and a Better
HomelandAppendix

The proportion of Residents Hired as Supervisors in NPC and its Subsidiaries in Taiwan
Over the Past 4 Years
Unit: person, %
NPC

Item

Subsidiaries in Taiwan

2019

2020

2021

2022

2019

2020

2021

2022

Residents hired as supervisors

3 , 329

3 , 345

3 , 337

3 , 328

642

640

647

642

The proportion(%)

74 . 675 . 075 . 374 . 659 . 359 . 158 . 659 . 3

The Full-time Employees Who Do Not Serve as Managers in NPC Unit: people, NT$ thousand/year
Item

2019

2020

2021

2022

Number of employees who do not serve as manager (person)

12 , 439

12 , 087

12 , 035

12 , 124

Average remuneration of employees who do not serve as
manager (NT$ thousand/year)

1 , 231

1 , 197

1 , 410

1 , 238Median remuneration of employees who do not serve as
managers (NT$ thousand/year)

1 , 219

1 , 132

1 , 369

1 , 161

The Full-time Employees Who Do Not Serve as Managers in the Subsidiaries in Taiwan

Unit: person, NT$ thousand/year

Item

2019

2020

Number of employees who do not serve as manager (person)
Average remuneration of employees who do not serve as
manager (NT$ thousand/year)

N/A

Median remuneration of employees who do not serve as
managers (NT$ thousand/year)

2021

2022

6 , 650

7 , 093

1 , 199

1 , 182

1 , 169

1 , 134

Employee Remuneration and Beneﬁts of NPC
Item
Employee Remuneration and Beneﬁts

Unit: NT$ thousand

2019

2020

2021

2022

16 , 631 , 937

16 , 011 , 216

18 , 486 , 937

16 , 108 , 941

Employee Remuneration and Beneﬁts of the Subsidiaries in Taiwan
Item
Employee Remuneration and Beneﬁts

2019

2020

2021

2022

6 , 405 , 053

7 , 685 , 844

9 , 385 , 807

9 , 711 , 093

R&D Expenditurets of NPC
Item
R&D Expenditurets

Unit: NT$ thousand

2019

2020

2021

2022

1 , 237 , 998

1 , 255 , 020

1 , 341 , 713

1 , 316 , 670

Overview of AI implementation in NPC's plants in Taiwan and abroad
Item

Unit: NT$ thousand

Unit: NT$ thousand

2019

2020

2021

2022

Ofﬁcially launched AI projects

52 cases

72 cases

57 cases

51 cases

Investments

91 , 464

145 , 803

33 , 720

84 , 962

Annual Beneﬁt

591 , 576

352 , 704

379 , 164

388 , 196

Note: Cases of AI in NPC plants domestically and abroad are included in the statistical scope.

2022 Sustainability Report20
145Nan Ya Plastics Corporation

Customer Satisfaction Survey of NPC Over the Past 4 Years
Year

Technical
research

Service
attitude

Brand
image

Productdeliverytime

Product
quality

Productcharacteristics

Product
price

Overallsatisfaction

2019

4.3

4.4

4.3

4.2

4.3

4.3

3.7

4.3

2020

4.4

4.5

4.4

4.3

4.4

4.4

3.8

4.4

2021

4.3

4.5

4.4

4.3

4.3

4.3

3.7

4.3

2022

4.3

4.5

4.4

4.3

4.3

4.3

3.7

4.3

Note: 5 points indicate extremely satisﬁed; 4 indicates satisﬁed; 3 indicates neutral; 2 points indicate dissatisﬁed; 1 point indicate
extremely dissatisﬁed

Environmental Symbiosis
Environmental Costs of NPC
Category

Item

2019

2020

2021

2022

1 , 382 , 589

1 , 441 , 032

1 , 558 , 872

1 , 481 , 331

Costs associated with supply chain
and customers

18 , 675

14 , 439

11 , 993

12 , 381

Management activity costs

41 , 565

34 , 284

41 , 682

48 , 310

280

0

41

0

Social engagement costs

18 , 511

17 , 855

18 , 440

17 , 700

Loss and remediation costs

100

1 , 69830

045 , 570

42 , 776

49 , 399

32 , 067

1 , 507 , 290

1 , 552 , 084

1 , 680 , 457

1 , 591 , 789

Operational costs

Environmental
Costs

Unit: NT$ thousand

Research and development costs

Fees, taxes, energy taxes, andothersTotal

Note: (1) Source: FPG's environmental accounting database(2) The "Operational costs" includes FPG's derivative costs from green procurement, product recycling and reproduction
costs, and expenses derived from product services for environmental protection

Environmental Costs of NPC Over the Past 4 Years
Company
NPC

Item
Revenues
Environmental Costs

2019

2020

2021

2022

1 , 547 . 80

1 , 434 . 06

2 , 174 . 61

1 , 691 . 84

15 . 0715 . 52

16 . 80

15 . 92

Source of revenues: NPC parent company only ﬁnancial statements throughout the years

19146Ongoing
Sustainable
Governance
Strategy

Green
Environment
Management
Promotion

Product
Value
Expansion

Creating a
Happy
and Safe
Workplace

The Pursuit of
Co-Prosperity
and a Better
HomelandAppendix

Major GHG Emission Sources and Energy Consumption in 2021
NPC

The Subsidiaries in Taiwan
Total energy Proportion
Heating
consumption of CO 2 evalue (B)(A)*(B)emissions

EmissionsourceConsumption(A)Heatingvalue (B)

Total energy Proportion
consumption of CO 2 eemissions(A)*(B)

EmissionsourceConsumption(A)Coal

639 , 085 tons

26 . 78
GJ/ton1 . 71 × 107 GJ

24 . 6 %Fuel oil

10 , 154 kl

38 . 48
GJ/ klFuel oil

77 , 935 kl

35 . 72
GJ/kl

2 . 78 × 106 GJ

3.6%

Fuel gas

9 , 274 tons

53 . 52
GJ/ ton4 . 96 ×
105 GJ

2.3%

71 , 356 tons

54 . 04
GJ/ton3 . 86 × 10 GJ

3.1%

FPG
internallypurchasedgas

430 , 878 tons

2 . 83
GJ/ ton1 . 22 ×
106 GJ

11 . 7 %FPG
internallypurchasedgas

3 , 971 , 935 tons

2 . 83
GJ/ton1 . 12 × 10 GJ

17 . 8 %FPG
internallypurchased
electricity

792 , 261 MWh

3 . 60
GJ/ MWh

2 . 85 ×
106 GJ

73 . 1 %FPG
internallypurchased
electricity

2 , 530 , 833
MWh3 . 609 . 11 × 106 GJ
GJ/ MWh34 . 2 %Externallypurchased
electricity

880 , 243 MWh

3 . 603 . 17 × 106 GJ
GJ/ MWh

7.3%

4 . 73 × 107 GJ

90 . 6 %4 . 96 ×
106 GJ

90 . 2 %Fuel gas

Total

6

7

Total

3 . 91 ×
105 GJ

3.1%

Note:(1)The data source of the table is the 2021 Greenhouse Gas Emission Inventory of each Company (veriﬁed data).
(2)The heating value of each emission source is calculated as an average value.

Energy Conservation Practices of NPC
Year

1999 ~ 2020
（A）

2021
（B）

2022
（C）

In progress
（D）

Total
（E=A+B+C+D）

Improved cases

4 , 580

405

412

342

5 , 739

Gas saved (ton/hour)

652 . 860 . 123 . 347 . 9784 . 1

Electricity saved (MWh/hour)

74 . 5

5.0

9.3

11 . 3100 . 1

Fuel saved (ton/hour)

25 . 310 . 71.2

0.8

38 . 0CO 2 e reduction ( 10 , 000 tons/
year)

225 . 235 . 012 . 6

17 . 7290 . 5Investment Amount (NT $ 100
million)57 . 27.4

7.0

25 . 296 . 8Investment beneﬁt (NT $ 100
million/year)

59 . 2

5.4

4.6

6.0

75 . 2

Item

Data Source: FPG Energy and Water Conservation Improvement Database; in-progress projects are counted as ongoing improvement cases inJanuary 2023 statistics.

2022 Sustainability Report20
147Nan Ya Plastics Corporation

Energy Conservation Practices of the Subsidiaries in Taiwan
Year1999 ~ 2020（A）

2021
（B）

2022
（C）

In progress
（D）

Total
（E=A+B+C+D）

Improved cases

937

53

89

15

1 , 094

Gas saved (ton/hour)

118 . 6

5.0

10 . 51.8

135 . 9

Electricity saved(MWh/hour)

8.0

1.2

1.3

0.9

11 . 4

Fuel saved (ton/hour)

2.6

0.0

0.3

0.1

3.0

CO 2 e reduction( 10 , 000 tons/year)

39 . 7

1.9

4.8

1.6

48 . 0

Amount invested (NT$ 100 million)

21 . 0

0.6

2.2

0.7

24 . 5Investment beneﬁt (NT$ 100 million/year)

10 . 6

0.5

1.3

0.4

12 . 8Item

Data Source: FPG Energy and Water Conservation Improvement Database; in-progress projects are counted as ongoing
improvement cases in January 2023 statistics.

The Summary of Consumption Per Unit Product
NPC

Item

The Subsidiaries in Taiwan

2021

2022

2021

2022

Gas consumption(Unit: ton/ton)

0 . 492

0 . 594

0 . 370

0 . 450

Electricity consumption(Unit: kWh/ton)

331 . 3409 . 1679 . 0764 . 9Note: The Company's disclosure scope was initially limited to the Mailiao site, but starting in 2021, it has been expanded to include
all Taiwan plant sites.

Statistics of Air Pollution Emissions in NPC and the Subsidiaries in Taiwan

Sulfur Oxides (SOx)Company

Unit: ton

2019

2020

2021

2022

NPC

583 . 09

540 . 90478 . 48292 . 98

Subsidiaries in Taiwan

54 . 00

40 . 30

35 . 440 . 02

Total

637 . 09581 . 20513 . 92

293 . 00

Nitrogen Oxides (NOx)Company

Unit: ton

2019

2020

2021

2022

NPC

1 , 277 . 11

1 , 183 . 40

967 . 41636 . 48

Subsidiaries in Taiwan

118 . 40

109 . 00

75 . 66

89 . 04

Total

1 , 395 . 51

1 , 292 . 40

1 , 043 . 07

725 . 52

Volatile Organic Compounds (VOC)
Company
NPC
Subsidiaries in Taiwan
Total

19
148

Unit: ton

2019

2020

2021

2022

2 , 009 . 63

1 , 869 . 70

2 , 141 . 22

1 , 585 . 65

62 . 70

72 . 26

99 . 76

80 . 46

2 , 072 . 33

1 , 941 . 96

2 , 240 . 98

1 , 666 . 11

Ongoing
Sustainable
Governance
Strategy

Green
Environment
Management
Promotion

Product
Value
Expansion

Creating a
Happy
and Safe
Workplace

The Pursuit of
Co-Prosperity
and a Better
Homeland

Total Suspended Particulates (TSP)
Company

Appendix

Unit: ton

2019

2020

2021

2022

NPC

84 . 2172 . 80

60 . 00

47 . 14

Subsidiaries in Taiwan

10 . 30

6 . 462 . 591 . 37

Total

94 . 51

79 . 26

62 . 59

48 . 51

Data Source: Stationary Pollution Source Air Pollution Fee and Emissions Reporting Management System of the Environmental
Protection Administration

Statistics on Water Supply from the Jiji Weir from 2019 to 2022
Industrial consumption
Year

Inﬂow from the
Jiji Weir(A)

Average Water
Consumption
(B)

2019

510 , 006

2020

Unit: 10,000 ton

Average Water
Consumption for
Public Purposes(D)

Average Water
Consumption (C)Proportion of
Water Source's
Total Volume(C)/(A)

189 , 778

9 , 840

1.9%

5 , 032

175 , 073

126 , 194

9 , 545

5.5%

4 , 8832021

284 , 714

135 , 989

9 , 726

3.4%

4 , 3802022

266 , 056

169 , 917

8 , 860

3.3%

4 , 306

Statistics of Discharge Volume of NPC and the Subsidiaries in Taiwan Over the Years
Unit: million liters/year

Discharge

2018

2019

2020

2021

6 , 870 . 5

6 , 765 . 9

6 , 667 . 5

6 , 528 . 9

Nan Ya PCB

2 , 619 . 7

2 , 884 . 2

3 , 070 . 0

2 , 792 . 2

PFG

432 . 9410 . 4337 . 2452 . 99 , 923 . 1

10 , 060 . 5

10 , 074 . 7

9 , 774 . 0

Company
NPC
Subsidiaries in Taiwan
Subtotal

Note: The Mailiao Wastewater Plant of the Company is in charge of treating the wastewater from NCPC.

2022 Sustainability Report20
149Nan Ya Plastics Corporation

Summary Table of NPC's Water Conservation Implementation Over the Years
Year

1999 ~ 2020
（A）

2021
（B）

2022
（C）

In progress
（D）

Total
（E=A+B+C+D）

Improved cases

727

48

33

20

828

Water saved (ton/day)

30 , 768

652

1 , 868

1 , 327

34 , 615

Amount invested(NT$ 100 million)

5.2

0.5

0.9

0.5

7.1

Improvement
beneﬁts (NT$ 100
million/year)

1 . 650 . 020 . 080 . 07

1 . 82

Item

Data Source: FPG Energy and Water Conservation Improvement Database; in-progress projects are counted as ongoing
improvement cases in January 2023 statistics.

Summary Table of Water Conservation Implementation of the Subsidiaries in Taiwan Over the Years
Year

1999 ~ 2020
（A）

2021
（B）

2022
（C）

In progress
（D）

Total
（E=A+B+C+D）

Improved cases

372

18

15

1

406

Water saved (ton/day)

11 , 533

246

293

12

12 , 084

Amount invested(NT$ 100 million)

0.9

0 . 0004

0 . 005

0 . 01

0.9

Improvement
beneﬁts (NT$ 100
million/year)

0.5

0 . 010 . 020 . 001

0.6

Item

Data Source: FPG Energy and Water Conservation Improvement Database; in-progress projects are counted as ongoing
improvement cases in January 2023 statistics.

Overview of Environmental Compliance by NPC and the Subsidiaries in Taiwan Over the Years
Company

Type

2019

2020

2021

2022

Air Pollution

2 cases /NT$ 200 , 000

2 cases /NT$ 200 , 000

1 case /NT$ 450 , 000

0 cases / NT$ 0

Water Pollution

0 cases / NT$ 00 cases / NT$ 0

2 cases /NT$ 40 , 000

0 cases / NT$ 0

Waste Pollution

0 cases / NT$ 0

1 case /NT$ 6 , 000

0 cases / NT$ 0

1 case /NT$ 60 , 000

Others0 cases / NT$ 00 cases / NT$ 00 cases / NT$ 0

1 case /NT$ 500 , 000

Air Pollution

0 cases / NT$ 00 cases / NT$ 00 cases / NT$ 00 cases / NT$ 0

Water Pollution

0 cases / NT$ 00 cases / NT$ 00 cases / NT$ 00 cases / NT$ 0

Waste Pollution

0 cases / NT$ 00 cases / NT$ 00 cases / NT$ 00 cases / NT$ 0

Others0 cases / NT$ 00 cases / NT$ 00 cases / NT$ 00 cases / NT$ 0

2 cases /NT$ 200 , 000

3 cases /NT$ 206 , 000

3 cases /NT$ 490 , 000

2 cases /NT$ 560 , 000

NPC

The Subsidiaries in
Taiwan

Total

19
150

Ongoing
Sustainable
Governance
Strategy

Green
Environment
Management
Promotion

Product
Value
Expansion

Creating a
Happy
and Safe
Workplace

The Pursuit of
Co-Prosperity
and a Better
HomelandAppendixCommon GoodThe Permanent Workforce Structure of NPC and the Subsidiaries in Taiwan in 2022
CompanyNPC

The Subsidiaries in Taiwan

FemaleProportion

Person

Proportion

Person

Proportion

Education

Total

PersonSeniority

Male

Proportion

Age

FemalePersonWorkplace
Location

Male

Executive
and above

2

0.1%

60

0.6%

0

0.0%

8

0.2%

70

First-,
second-levelsupervisors

59

3.2%

1 , 569

15 . 7 %

40

2.1%

374

8.1%

2 , 042

Entry-levelsupervisorsand entrylevel
personnel

1 , 786

96 . 7 %

8 , 334

83 . 7 %1 , 824

97 . 9 %4 , 240

91 . 7 %16 , 184

Northern
Taiwan906

49 . 0 %3 , 780

37 . 9 %1 , 864

100 . 0 %4 , 622100 . 0 %11 , 172

Central
Taiwan62

3.4%

1 , 437

14 . 4 %

0

0.0%

0

0.0%

1 , 499

Southern
Taiwan879

47 . 6 %4 , 746

47 . 7 %

0

0.0%

0

0.0%

5 , 625

Category

Job Title

Unit: person

Type

Under 29223

12 . 1 %1 , 48114 . 9 %

185

9.9%

675

14 . 6 %2 , 564

30 - 39

194

10 . 5 %1 , 938

19 . 5 %324

17 . 4 %970

21 . 0 %3 , 426

40 - 49714

38 . 7 %2 , 206

22 . 1 %1 , 01954 . 7 %2 , 080

45 . 0 %6 , 01950 - 59601

32 . 5 %3 , 358

33 . 7 %306

16 . 4 %813

17 . 6 %5 , 078

Over 60

115

6.2%

980

9.8%

30

1.6%

84

1.8%

1 , 209

Under 10394

21 . 3 %3 , 346

33 . 7 %377

20 . 2 %1 , 354

29 . 3 %5 , 471

11 ~ 20

76

4.1%

532

5.3%

512

27 . 5 %1 , 435

31 . 0 %2 , 555

21 ~ 30807

43 . 7 %3 , 790

38 . 0 %845

45 . 3 %1 , 567

33 . 9 %7 , 009

Over 30570

30 . 9 %2 , 295

23 . 0 %

130

7.0%

266

5.8%

3 , 261

Ph.D.

0

0.0%

23

0.2%

0

0.0%

6

0.1%

29

Master's
degree

65

3.5%

600

6.0%

57

3.1%

275

5.9%

997

Bachelor's
degree99

5.4%

1 , 293

13 . 0 %

86

4.6%

441

9.5%

1 , 919

1 , 683

91 . 1 %8 , 047

80 . 8 %1 , 72192 . 3 %3 , 900

84 . 5 %15 , 351

1 , 847100 %9 , 963100 %

1 , 864

100 %4 , 622100 %

18 , 296

OthersSubtotal

Note: The statistical standard used in this table is formal employees as of December 31, 2022.

2022 Sustainability Report20
151Nan Ya Plastics Corporation

The Temporary Workforce Structure of NPC and the Subsidiaries in Taiwan in 2022
Company

Unit: Person

Job Title

FemaleMaleRegular contract workers

2045Interns-

14

Subtotal

2059Regular contract workers

3

5Interns-

6

Subtotal

3

11

NPC

The Subsidiaries in Taiwan

Total

93

Note: The statistical standard used in this table is formal employees as of December 31, 2022.

Parental Leave Application and Reinstatement Rates in NPC and the Subsidiaries in Taiwan
2019

202

Male

Total

Female

Male

Total

Female

Male

Total

Female

Male

Total

NPC

Item

2021

FemaleCompany

2020

Unit: Person

Number of employees
eligible for parental leave

47

316

363

32

305

337

30

331

361

31

459

490

Number of parental leave
applications received

12

10

22

39

7

46

33

15

48

20

25

45

Number of employees
who are expected to bereinstated during the year
(A)

12

3

15

37

12

49

29

14

43

8

11

19

Number of reinstatement
applications received
during the year (B)

12

2

14

23

7

30

24

13

37

11

14

25

66 . 7 93 . 3 62 . 2 58 . 3 61 . 2 82 . 8 92 . 9 86 . 0

100

100

100

10

12

22

Reinstatement rate % (B/A)

100

Still employed morethan a year after theirreinstatement

12

2

14

23

7

30

22

13

35

Retention rate %

100

100

100

100

100

100

91 . 7100

94 . 6 90 . 9 85 . 7 88 . 0

Number of employees
eligible for parental leave

13

87

100

30

194

224

Number of parental leave
applications received

14

12

26

34

10

44

Number of employees
who are expected to bereinstated during the year
(A)

7

5

12

12

2

14

13

7

20

22

8

30

Reinstatement rate % (B/A)

100

100

100

100

100

100

Still employed morethan a year after theirreinstatement

12

7

19

22

8

30

Retention rate %92 . 3100

95 . 0

100

100

100

The
Subsidiaries
Number of reinstatement
in Taiwan
applications received
during the year (B)N/A

Note: (1)Retention rate refers to the percentage of employees who are reinstated after taking a parental leave and staying for
more than a year.
(2)The Company and its subsidiaries in Taiwan are included in the 2021–2022 statistical data. Statistics for 2019–2020 do notcontain information from the subsidiaries in Taiwan.

19
152

Ongoing
Sustainable
Governance
Strategy

Green
Environment
Management
Promotion

Product
Value
Expansion

Creating a
Happy
and Safe
Workplace

The Pursuit of
Co-Prosperity
and a Better
HomelandAppendixTraining Status for All Employees in NPC and the Subsidiaries in Taiwan
Second-levelsupervisors

First-level supervisors

15 , 085 48 , 791 1 , 679

50 , 470

186 , 104

2 , 664

188 , 768 464 , 744 92 , 194

556 , 9382020

12 , 88955

12 , 944 37 , 674

709

38 , 383

186 , 634

3 , 390

190 , 024 446 , 429 92 , 195

538 , 624

2021

8 , 331122

8 , 453

29 , 601

577

30 , 178

166 , 961

2 , 663

169 , 624 432 , 843 87 , 401

520 , 244

2022

6 , 75930

6 , 789

28 , 206

555

28 , 761

169 , 316

2 , 089

171 , 405 398 , 207 74 , 470

472 , 677

2019

773

0

773

2 , 75464

2 , 818

18 , 503

1 , 370

19 , 873

94 , 773

38 , 167

132 , 940

2020

686

0

686

2 , 807150

2 , 957

15 , 246

1 , 351

16 , 597

90 , 144

36 , 743

126 , 887

2021

1 , 0140

1 , 014

2 , 525210

2 , 735

15 , 676

869

16 , 545

99 , 794

38 , 671

138 , 465

2022

1 , 1292

1 , 1313 , 498

243

3 , 741

19 , 184

958

20 , 142

122 , 618 45 , 489

168 , 107

Total

Total

FemaleFemale

Male

22

Male

Total

Female15 , 063

Male

2019

Total

Subsidiaries
in Taiwan

Entry-level personnel

Female

NPC

Year

Entry-level supervisors

Male

Company

Unit: Hour

The Employee Training Completion Rate at Various Phases of NPC and its subsidiaries in Taiwan
Items

Company

Basic job training

Professional
competencies training

Annual training
program

2019

100

100

100

2020

100

100

100

2021

100

100

100

2022

100

100

100

2019

100

99 . 9

100

2020

100

100

100

2021

100

100

100

2022

100

100

100

Year

NPC

The Subsidiaries in
TaiwanUnit: %

Note: The completion rate is the percentage of training subjects completed during the year.

The Occupational Injury Indicators of NPC and the Subsidiaries in Taiwan Over the Past 4 Years
NPC

Subsidiaries in Taiwan

Plastic products manufacturers

Disabling
Injuries
Frequency
Rate (FR)Disabling
Injuries
Severity
Rate (SR)Frequencyseverity
Indicator(FSI)

Disabling
Injuries
Frequency
Rate (FR)Disabling
Injuries
Severity
Rate (SR)Frequencyseverity
Indicator(FSI)

Disabling
Injuries
Frequency
Rate (FR)Disabling
Injuries
Severity
Rate (SR)Frequencyseverity
Indicator
(FSI)

2019

0 . 6288

0 . 230 . 042

0

1 . 42

94

0 . 372020

0 . 35247

0 . 290 . 0300

1 . 54

209

0 . 572021

0 . 2940 . 030 . 07

10

1 . 74177

0 . 552022

0 . 21

10 . 01000

1 . 81157

0 . 53Year

Note: (1) Disabling Injuries Frequency Rate (FR) = number of disabling injuries x 106 / total working hours(2) Disabling Injuries Severity Rate (SR) = working days lost to disabling injuries x 106 / total working hours(3) Frequency-severity Indicator (FSI) = (FR × SR / 1000) 1/2

2022 Sustainability Report20
153Nan Ya Plastics Corporation

Occupational Injury Indicators and Working Hours of Contractors
Total Working Hours and Days
Company

NPC

The
Subsidiaries
in Taiwan

Number of
Accidents

Total Days
Lost

Disabling
Frequency
Rate (FR)Disabling
Severity
Rate (SR)Frequencyseverity
Indicator (FSI)

5 , 055 , 052

1

6 , 000

0 . 191 , 186

0 . 47443 , 852

3 , 550 , 814

1

1

0 . 280

0 . 002022

495 , 194

3 , 961 , 550

4

6 , 413

1 . 01

1 , 618

1 . 272020

36 , 024

288 , 198

0

0

0

0

0

2021

41 , 056

328 , 450

0

0

0

0

0

2022

5 , 046 , 784

630 , 848

0

0

0

0

0

Year

Total Working
Days

Total Working
Hours

2020

631 , 882

2021

Note: (1) NPC and its subsidiaries in Taiwan began tracking total working hours and days in 2020.
(2) The deﬁnitions of the indicators are the same as employees' occupational injury indicators

Process Safety Incidents Over the Years
Company

Item

Unit

2019

2020

2021

2022

Cases

1

0

1

0

Process Safety Total Incident Rate (PSTIR)%

0 . 0080

0 . 0090

Process Safety Incident Severity Rate (PSISR)%

0 . 0250

0 . 009

0

Cases

0

0

0

0

Process Safety Total Incident Rate (PSTIR)

%

0

0

0

0

Process Safety Incident Severity Rate (PSISR)

%

0

0

0

0

Process Safety Incidents Count (PSIC)
NPC

The
Subsidiaries
in Taiwan

Process Safety Incidents Count (PSIC)The Ratio of Local Procurement of NPC Over the Past 4 Years
Company
NPC
The
Subsidiaries
in Taiwan

Item

2019

2020

2021

2022

The ratio of domestic procurement (%)

85

84

85

87

The ratio of overseas procurement (%)

15

16

15

13

The ratio of domestic procurement (%)

64

47

50

79

The ratio of overseas procurement (%)

36

53

50

21

The Ratio of Issuing Electronic Invoices of NPC and the Subsidiaries in Taiwan
Company
NPC
The
Subsidiaries
in Taiwan

Item

2019

2020

2021

2022

Traditional invoice ratio (%)

17 . 40

17 . 04

16 . 28

16 . 52

Electronic invoice ratio (%)

82 . 60

82 . 96

83 . 72

83 . 48

Traditional invoice ratio (%)

13 . 49

12 . 17

11 . 33

10 . 03

Electronic invoice ratio (%)

86 . 51

87 . 83

88 . 67

89 . 97

The response rate of sustainability standards of NPC Over the Past 4 Years

19
154

NO.

Sustainable Regulations

2019

2020

2021

2022

1

Social Responsibility Commitment

77 %

81 %

81 %

99 %

2

Social Responsibility Survey

54 %

72 %

75 %

95 %

Ongoing
Sustainable
Governance
Strategy

Product
Value
Expansion

Green
Environment
Management
Promotion

Creating a
Happy
and Safe
Workplace

The Pursuit of
Co-Prosperity
and a Better
HomelandAppendix

Appendix 2 Global Reporting Initiative (GRI) Comparison Table
Statement of Use

From January 1 , 2022 , and December 31 , 2022 , NPC reported in compliance with GRI
standards.

Adopt GRI 1

GRI 1 : Foundation 2021

The Applicable Sector
Standards

NA

GRI 2: General Disclosures
GRI Standards

Referenced Section

Pages

About This Report

P. 1

About Nan Ya Plastics

P. 7

Entities included in the organization's
sustainability reporting

About This Report

P. 1

2-3

Reporting period, frequency andcontact point

About This Report

P. 1

2-4

Restatements of information

About This Report

P. 1

2-5

External assurance

About This Report

P. 1

About Nan Ya Plastics

P. 7

2-6

Activities, value chain and otherbusiness relationships

2-1

Organizational details

2-2

2 . 1 Diversiﬁed Product Application
4 . 4 Supplier and Contractor
Management

P. 1272-7

Employees

2-8Workers who are not employees

4 . 2 Talent Training andDevelopment

P. 1062-9

Governance structure and composition

1 . 1 Remarkable Corporate
Governance

P. 33

2 - 10Nomination and selection of the highest 1 . 1 Remarkable Corporate
governance body
Governance

P. 33

2 - 12

Role of the highest governance body inoverseeing the management of impacts

1 . 1 Remarkable Corporate
Governance

P. 33

2 - 11Chair of the highest governance body1 . 1 Remarkable Corporate
Governance

P. 33

2 - 13

About This Report
Delegation of responsibility for managing
1 . 1 Remarkable Corporate
impacts
Governance2 - 14

Role of the highest governance body insustainability reporting2 - 15

P. 106

P. 1
P. 33
P. 1

1 . 1 Remarkable Corporate
GovernanceP. 33

Conﬂicts of interest

1 . 1 Remarkable Corporate
Governance

P. 33

2 - 16

Communication of critical concerns

1 . 4 Issues of Special Concern

P. 48

2 - 17

Collective knowledge of the highest
governance body

Material Topics Identiﬁcation andStakeholder Engagement

P. 20

2 - 18

Evaluation of the performance of thehighest governance body1 . 1 Remarkable Corporate
Governance

P. 33

2 - 19Remuneration policies

1 . 1 Remarkable Corporate
Governance4 . 2 Talent Training andDevelopment

V No restated information

P. 51

4 . 2 Talent Training andDevelopment

About This Report

Note

P. 33
P. 1062022 Sustainability Report20
155Nan Ya Plastics Corporation

2 - 20

Process to determine remuneration

1 . 1 Remarkable Corporate
Governance

P. 33

2 - 21

Annual total compensation ratio

1 . 1 Remarkable Corporate
Governance

P. 33

2 - 22

Statement on sustainable development
strategy

Message from the Chairman

P. 5

2 - 23

Policy commitments

Management of sustainableissues in each chapter

P. 31、51、67、103、132

2 - 24

Embedding policy commitments

Management of sustainableissues in each chapter

P. 31、51、67、103、132

2 - 25

Processes to remediate negative
impacts

Management of sustainableissues in each chapter

P. 31、51、67、103、132

2 - 26

Mechanisms for seeking advice andraising concerns

4 . 2 . 2 Employee Beneﬁts andCare

P. 1082 - 27

Compliance with laws and regulations

1 . 2 . 2 Legal Compliance

P. 43

2 - 28

Membership associations

Participate in external association P. 9

2 - 29Approach to stakeholder engagement

Communications with
Stakeholders

2 - 30

Collective bargaining agreements

4 . 2 . 2 Employee Beneﬁts and
Care

P. 26
The Company listens
to the employees
through the labor
union instead of writingcollective agreements
to create harmonious
labormanagement
relationsP. 108GRI Topic Standards
TopicsManagement
ApproachGRI Standards

Referenced Section

Pages

GRI 3 - 1 Process to determine material
topicsMaterial Topics Identiﬁcationand Stakeholder Engagement

P. 20

GRI 3 - 2 List of material topics

Material Topics Identiﬁcationand Stakeholder Engagement

P. 20

Note

Material Topic: Operating and Financial Performance
Management
Approach

GRI 3 - 3 Management of material topics

1 .Ongoing Sustainable
Governance Strategy

201 - 1 Direct economic value generated
1 . 2 . 1 Ecnomic Performanceand distributed

GRI 201 :Economic
Performance
2016

P. 32
P. 42

201 - 2 Financial implications and otherrisks and opportunities due toclimate change

3 . 2 Climate Action and Strategy P. 76

201 - 3 Deﬁned beneﬁt plan obligations
and other retirement plans

4 . 2 Talent Training andDevelopment

201 - 4 Financial assistance received fromNot Applicablegovernment

P. 106-

Material Topic: Ethical Business Management, Corporate GovernanceManagement
Approach

GRI 3 - 3 Management of material topics

1 .Ongoing Sustainable
Governance Strategy

P. 32

1 . 1 . 3 Integrity Management
and Anti-corruption

P. 38

205 - 1 Operations assessed for risks
related to corruption
GRI 205 : Anticorruption 2016

205 - 2 Communication and training
about anti-corruption policies
and procedures

4 . 4 . 1 Supplier Management

P. 128205 - 3 Conﬁrmed incidents of corruption
and actions taken

19
156

GRI 206 : Anticompetitive
Behavior 2016

206 - 1 Legal actions for anti-competitive
1.1. 3 Integrity Management
behavior, anti-trust, andand Anti-corruption
monopoly practices

P. 38

There is no available
subsidy, so thestandard is notapplicableOngoing
Sustainable
Governance
Strategy

Green
Environment
Management
Promotion

Product
Value
Expansion

Creating a
Happy
and Safe
Workplace

The Pursuit of
Co-Prosperity
and a Better
HomelandAppendix

Material Topic: Regulatory ComplianceManagement
Approach

GRI 3 - 3 Management of material topics

GRI 2 : General 2 - 27 Compliance with laws andDisclosures 2021
regulations

1 . Ongoing Sustainable
Governance Strategy

P. 32

1 . 2 . 2 Legal Compliance

P. 43

Material Topic: Energy Management
Management
Approach

GRI 302 :Energy 2016

GRI 3 - 3 Management of material topics

3 . Green Environment
Management Promotion

302 - 1 Energy consumption within theorganization

3 . 2 Climate Action and Strategy P. 76

302 - 2 Energy consumption outside of
the organization

3 . 2 Climate Action and Strategy P. 76

302 - 3 Energy intensity

3 . 2 Climate Action and Strategy P. 76

P. 66

302 - 4 Reduction of energy consumption 3 . 2 Climate Action and Strategy P. 76
302 - 5 Reductions in energy
requirements of products andservices

3 . 2 Climate Action and Strategy P. 76

Material Topic: Energy Management
Management
Approach

GRI 3 - 3 Management of material topics

3 . Green Environment
Management Promotion

303 - 1 Interactions with water as ashared resource

3.4 Water Resource Management P. 92

P. 66

303 - 2 Management of water discharge3.4 Water Resource Management P. 92
related impacts
GRI 303 : Water
and Efﬂuents
303 - 3 Water withdrawal
3.4 Water Resource Management P. 92
2018
303 - 4 Water discharge

3.4 Water Resource Management P. 92

303 - 5 Water consumption

3.4 Water Resource Management P. 92

Material Topic: Climate Change Mitigation and Adaptation, Air Pollutant Management, Greenhouse Gas Management
Management
Approach

GRI 3 - 3 Management of material topics

3 . Green Environment
Management Promotion

P. 66

305 - 1 Direct (Scope 1 ) GHG emissions

3 . 2 . 3 Management of Carbon
Issues

P. 84

305 - 2 Energy indirect (Scope 2 ) GHG
emissions

3 . 2 . 3 Management of Carbon
Issues

P. 84

305 - 3 Other indirect (Scope 3 ) GHG
emissions

3 . 2 . 3 Management of Carbon
Issues

P. 84

305 - 4 GHG emissions intensity

3 . 2 . 3 Management of Carbon
Issues

P. 84

305 - 5 Reduction of GHG emissions

3 . 2 Climate Action andStrategy

P. 76
NPC abides by domestic
laws and avoids
using or producing
any substances that
harm the ozone layerof the atmosphere.
Additionally,
the Company's
manufacturing
process does not use
any substances or
equipment that deplete
the ozone layer.

GRI 305 :Emissions 2016

305 - 6 Emissions of ozone-depleting
substances (ODS)

Prohibited in laws andregulations

305 - 7 Nitrogen oxides (NOx), sulfur
oxides (SOx), and other signiﬁcant 3 . 3 Air Pollution Management
air emissions

-

P. 89

2022 Sustainability Report20
157

Nan Ya Plastics Corporation

Material Topic: Waste Management, Circular Economic Promotion
Management
Approach

GRI 3 - 3 Management of material topics

3 . Green Environment
Management Promotion

P. 66

306 - 1 Waste generation and signiﬁcantwaste-related impacts

3 . 5 . 1 Waste Management

P. 98

306 - 2 Management of signiﬁcantwaste-related impacts

3 . 5 . 1 Waste Management

P. 98

3 . 5 . 1 Waste Management

P. 98

306 - 4 Waste diverted from disposal

3 . 5 . 1 Waste Management

P. 98

306 - 5 Waste directed to disposal

3 . 5 . 1 Waste Management

P. 98

GRI 306 : Waste
306 - 3 Waste generated
2020

Material Topic: Employee Beneﬁts and SalaryManagement
Approach
GRI 202 :MarketPresence 2016

GRI 401 :Employment
2016

GRI 3 - 3 Management of material topics

4 . Creating a Happy and Safe
Workplace

P. 102202 - 1 Ratios of standard entry level
wage by gender compared to
local minimum wage

4 . 2 Talent Training andDevelopment

P. 106202 - 2 Proportion of senior management 4 . 2 Talent Training andhired from the local community
Development

P. 106401 - 1 New employee hires andemployee turnover4 . 2 Talent Training andDevelopment

P. 106401 - 2 Beneﬁts provided to full-time
employees that are not provided
to temporary or part-time
employees

4 . 2 Talent Training andDevelopment

P. 106401 - 3 Parental leave

4 . 2 Talent Training andDevelopment

P. 106

Material Topic: Industrial and Public Safety, Occupational Health and Safety
Management
Approach

GRI 403 :Occupational
Health and
Safety 2018

19
158

GRI 3 - 3 Management of material topics

4 . Creating a Happy and Safe
Workplace

P. 102403 - 1 Occupational health and safety
management system

4 . 3 Workplace Safety

P. 115403 - 2 Hazard identiﬁcation, risk
assessment, and incident
investigation

4 . 3 Workplace Safety

P. 115403 - 3 Occupational health services

4 . 3 Workplace Safety

P. 115403 - 4 Worker participation, consultation,and communication on
4 . 3 Workplace Safety
occupational health and safety

P. 115403 - 5 Worker training on occupational
health and safety

4 . 3 Workplace Safety

P. 115403 - 6 Promotion of worker health4 . 3 Workplace Safety

P. 115403 - 7 Prevention and mitigation ofoccupational health and safety
impacts directly linked bybusiness relationships

4 . 3 Workplace Safety

P. 115403 - 8 Workers covered by an
occupational health and safety
management system

4 . 3 Workplace Safety

P. 115403 - 9 Work-related injuries

4 . 3 Workplace Safety

P. 115403 - 10 Work-related ill health4 . 3 Workplace Safety

P. 115

Ongoing
Sustainable
Governance
Strategy

Product
Value
Expansion

Green
Environment
Management
Promotion

Creating a
Happy
and Safe
Workplace

The Pursuit of
Co-Prosperity
and a Better
HomelandAppendix

Appendix 3 Sustainability Accounting Standards Board(SASB) Comparison Table
Disclosure
Topic

Greenhouse Gas Emissions - NPC

CodeAccounting Metric
Gross Scope 1 emissions (unit:
CO 2 -e)

RT-CH- 110 a. 1

RT-CH- 110 a. 2

2018

2019

2020

2021

2 , 645 , 521

2 , 661 , 454

2 , 602 , 355

2 , 499 , 081

The percentage covered under Inventory under the regulations of the "Regulations
emissions-limiting regulations
for Registration of Inventory for Greenhouse Gas(unit: %)Emissions"

3 . 2 Climate
NPC has established carbon reduction goals such Action andDiscussion of long-term and short- as "external commitments" and "internal tightening Strategy
term strategy or plan to manage management" in response to various purposes but
Scope 1 emissions, emissionsit will pursue the strictest requirements and actively
reduction targets, and an analysis promote the four main carbon reduction strategies
of performance against thosein order to work towards the long-term goal oftargets"carbon neutrality by 2050 " to mitigate and adapt
for the impacts of climate change.

Disclosure
Topic

Air Quality

Code

Accounting MetricAir emissions of the following
pollutants: (unit: ton)

RT-CH- 120 a. 1

2020

2021

2022

NOx (excluding N 2 O)

1 , 395 . 51

1 , 292 . 40

1 , 043 . 07

725 . 52

SOx

637 . 09581 . 20513 . 92

293 . 00

Volatile organic compounds(VOCs)

2 , 072 . 33

1 , 941 . 96

2 , 240 . 98

1 , 666 . 11

Hazardous air pollutants (HAPs)

-

-

-

-

Accounting Metric

Percentage grid electricity(unit: %)

2019

2020

2021

Referenced
Section

48 , 491 . 656 46 , 422 , 457 45 , 759 , 257 47 , 259 , 941
67 . 0 %66 . 7 %71 . 8 %Percentage renewable (unit: %)

0

0

0

0

Total self-generated energy (unit:
GJ)

5 , 093 , 681

5 , 113 , 423

5 , 254 , 620

4 , 831 , 885

3 . 2 Climate
Action andStrategy

Water Management - NPC
Accounting Metric
Total water withdrawn (unit:
1000 m 3 )RT-CH- 140 a. 1

Corresponding Disclosure
2018

68 . 5 %Disclosure
Topic
Code

3 . 3 Air
Pollution
Management

Energy Management - NPC

Total energy consumed (unit: GJ)

RT-CH- 130 a. 1

Referenced
SectionCorresponding Disclosure
2019

Disclosure
Topic
Code

Referenced
SectionCorresponding Disclosure

Water consumed in regions withhigh or extremely high baselinewater stress (unit: %)Total water consumed (unit:
1000 m 3 )Corresponding Disclosure
2018

2019

2020

2021

20 , 318

19 , 790

19 , 841

20 , 830

It does not apply to the current disclosure scope
11 , 865

13 , 406

14 , 436

Referenced
Section3 . 4 Water
Resource
Management

15 , 8022022 Sustainability Report20
159Nan Ya Plastics Corporation

Disclosure
Topic
Code

RT-CH- 140 a. 2

RT-CH- 140 a. 3

Water Management - NPC
Accounting Metric

Number of incidents of noncompliance associated withwater quality permits, standards,
and regulations

Description of water
management risks and discussionof strategies and practices tomitigate those risks

Disclosure
Topic
Code

RT-CH- 150 a

Accounting Metric

Environmental violations related to water pollution
in 2019 - 2022
(unit: case)Year2019 2020 2021 2022

Type of violations
Water pollution

0

0

2

0

Soil and groundwater

0

0

0

0

Referenced
Section3 . 4 Water
Resource
Management

Assess the available consumption and withdrawn
risk for water resources by using the risk matrix, ISO
3 . 4 Water
14046 , and the WRI Aqueduct assessment tool.
Resource
The Company plans to increase the amount ofManagement
wastewater recycling and desalination equipment
to reduce the impact

Corresponding Disclosure
2021

2022

Amount of hazardous waste
generated (unit: ton)

17 , 045 . 8

21 , 057 . 7

23 , 371 . 0

21 , 757 . 0

Percentage recycled (unit: %)

99

98

89

84

Referenced
Section3 . 5 Waste
Management
and Circular
EconomyCommunity Relations

RT-CH- 210 a. 1

Describe the assessment andactions that the organization
adapts to enhance the interestsof community groups and help
reduce risks of the community

Disclosure
Topic

19
160

2022

2020

Accounting Metric

RT-CH- 320 a. 2

2021

2019

Code

RT-CH- 320 a. 1

2020

Hazardous Waste Management

Disclosure
Topic

Code

Corresponding Disclosure
2019

Referenced
SectionCorresponding Disclosure

Caring for the urgent needs of the community,
donating social welfare expenditures andcooperating with academia to provide local 5 . 1 Locala g r i c u l t u r a l a n d f i s h e r y s c i e n t i f i c b r e e d i n g Engagement
techniques, operating in an environmentallyfriendly manner, and increasing output
Workforce Health & Safety

Accounting Metric

Corresponding Disclosure

Referenced
Section

2019

2020

2021

2022

Total recordable incident rate
(TRIR) and fatality rate for direct
employees

The fatality
rate: 0
TRIR: 0 . 086

The fatality
rate: 1
TRIR: 0 . 054

The fatality
rate: 0
TRIR: 0 . 044

The fatality
rate: 0
TRIR: 0 . 042

Total recordable incident
rate (TRIR) and fatality rate forcontract employees

The fatality
rate: 0
TRIR: 0The fatality
rate: 0
TRIR: 0The fatality
rate: 0
TRIR: 0The fatality
rate: 0
TRIR: 0Description of efforts to reduce
exposure of employees to longterm (chronic) health risks

NPC keeps reviewing the process protection
measures in each plant in an effort to improve 4 . 3
process safety management and lower the Workplacefrequency of hazardous occurrences. To reinforce Safety
the intrinsic safety of the equipment, upgrades suchas interlocking devices, alarm systems, buzzers, etc.
have been adopted based on the features of theprocess. The Company also inspects assembly anddisassembly processes, reviews the safety of tools
used, and requests introspection and improvement
reports from business units with declining industrial
safety management KPIs.

Ongoing
Sustainable
Governance
Strategy

Green
Environment
Management
Promotion

Product
Value
Expansion

Disclosure
Topic
Code

RT-CH- 410 a. 1

Creating a
Happy
and Safe
Workplace

The Pursuit of
Co-Prosperity
and a Better
Homeland

Product Design for Use-phase Efﬁciency - NPC
Corresponding Disclosure

Accounting Metric

2019

Revenue from products designed for
use-phase resource efﬁciency (unit:
currency used for reporting)Disclosure
Topic

2020

N/A

2021

2022

Green
product sales
accounted forabout 4 . 1 %of parent
company-only
revenue in 2021.

Green
product sales
accounted forabout 5 . 4 %of parent
company-only
revenue in 2021.

Referenced
Section2 . 2 Green andEnvironmentalfriendly
Innovation

Safety & Environmental Stewardship of Chemicals
Referenced
SectionCode

Accounting Metric

Corresponding Disclosure

RT-CH- 410 b. 1

Percentage of products that contain
Globally Harmonized System ofClassiﬁcation and Labelling ofChemicals (GHS) Category 1 and 2
Health and Environmental Hazardsous
Substances (unit: % by revenue)

Since NPC has a wide range of product categories(including chemicals, plastics, electronic materials, ﬁbers,
polyester resins, etc.), an internal product review andclassiﬁcation will be conducted this year, and it is expectedthat disclosing will begin the following year.

Percentage of such productsthat have undergone a hazard
assessment(unit: % by revenue)

All hazardous substances utilized in operations haveundergone hazard exposure assessment and gradedmanagement in accordance with the regulations andspecifications of the Occupational Safety and HealthAdministration.

Description of strategy to manage
chemicals of concern

Regularly track domestic and international relevant chemical
specifications as the basis for internal chemical purchaseand adoption, green product design and development, andprocess safety design.

Description of strategy to develop
alternatives with reduced human
and/or environmental impact

Taking green product development and cleaner production
as the main axle, the transition would focus on low harm to thehuman body, environmentally friendly, and emissions reductionof VOC.

RT-CH- 410 b. 2

Disclosure
Topic
Code

Appendix

2 . 2 Green andEnvironmentalfriendly
Innovation
4 . 3 Workplace
SafetyGenetically Modiﬁed Organisms
Accounting Metric

Referenced
SectionCorresponding Disclosure

RT-CH- 410 c. 1

2 . 2 Green andPercentage of products by revenue
The Company does not manufacture products containing Environmentalthat contain genetically modiﬁed
genetically modiﬁed organisms.
friendlyorganisms (GMOs) (unit: % by revenue)
Innovation

Disclosure
Topic

Management of the Legal & Regulatory Environment
Corresponding Disclosure

CodeAccounting Metric

RT-CH- 530 a. 1

An organization identiﬁes risks
and opportunities associated withenvironmental/social regulations andthe ﬁnancial impacts

Disclosure
Topic
Code

RT-CH- 540 a. 1
RT-CH- 540 a. 2

2019

2020

Violations: 2
cases
Fine:
NT$ 200 , 000

Violations: 3
cases
Fine:
NT$ 206 , 000

2021

2022

Violations: 3
cases
Fine:
NT$ 490 , 000

Violations: 2
cases
Fine:
NT$ 560 , 000

Referenced
Section1 . 2 . 2 Legal
Compliance

Operational Safety, Emergency Preparedness & Response
Accounting Metric

Corresponding Disclosure
2019

2020

2021

2022

Process Safety Incidents Count (PSIC)

1

0

1

0

Process Safety Total Incident Rate (PSTIR)

0 . 0080

0 . 0090

Process Safety Incident Severity Rate (PSISR)

0 . 0250

0 . 009

0

0

0

0

0

Number of transport incidents

Referenced
Section
4.3
Workplace
Safety2022 Sustainability Report20
161Nan Ya Plastics Corporation

Disclosure
Topic

Production by reportable segment

Code

Accounting Metric

RT-CH- 000 .A

Description of Production byreportable segment (unit: m 3 orton)

Corresponding Disclosure

Referenced
SectionPlease refer to the sales volume/value table of the 2 . 1 Diversiﬁed
Company's annual report " 2022 Annual Report" on Productthe Company's website.
Application

Appendix 4 Corporate Governance Evaluation ESG Indicator
Disclosure Item
Topic

Indicator Item

Description

2022 Results

Note

Since the GHG
emissions of Scope
1 , Scope 2 , andScope 3 in 2022 arestill being veriﬁed,the 2021 values aredisclosed

Environmental Issues

GHG Emissions

Energy Management

Water Resources

Waste

Scope 1 GHG direct emission

Ton CO 2

2 , 499 , 081

Scope 2 GHG indirectemissions

Ton CO 2

3 , 636 , 122

Scope 3 other GHG indirectemissions

Ton CO 2

14 , 868 , 345

GHG emissions intensity

Ton CO 2 /revenue0 . 028

Strategies, methods, andgoals of GHG management

Qualitative
narrative

Renewable energy usage

Renewableenergy / totalenergyenergy efﬁciency

Qualitative
narrative

Use of recycled materials
policyQualitative
narrative0%

The 2021 values
are disclosed

3 . 2 Climate Actionand Strategy

Ton

20 , 830 , 240

Water intensity

Water usage/
revenue0 . 0958

Water resource management
and reduction targets

Qualitative
narrative

3 . 4 Water Resource
Management

Hazardous waste volumn

Ton

5 , 635 . 07

Non-hazardous waste volume

Ton

80 , 116 . 86

Total weight (hazardous +non-hazardous)Ton

85 , 751 . 93

Waste
consumption/
revenue0 . 0005

Qualitative
narrative

The reduction target
is 1 % compared withlast year

Waste management or
reduction targets

19162

3 . 2 Climate Actionand Strategy

Water usage

Waste Intensity

2021 Scope 1 +Scope 2Since the water
footprints in 2022
are still being
veriﬁed, the2021 values aredisclosed

Ongoing
Sustainable
Governance
Strategy

Product
Value
Expansion

Topic

Green
Environment
Management
Promotion

Indicator Item

Creating a
Happy
and Safe
Workplace

Description

The Pursuit of
Co-Prosperity
and a Better
Homeland

2022 Results

Appendix

Note

Social Issues

Human Resource
Development

Average employee remuneration

NTD/ Person

1 , 080thousand dollars

Average employee beneﬁts

NTD/ Person

1 , 233
thousand dollars

Average remuneration of full-time
employees who do not serve as manager

NTD/ Person

1 , 238
housand dollars

Median remuneration of full-time
employees who do not serve as manager

NTD/ Person

1 , 161thousand dollars
Taking the ﬁrst and second4 . 85 level supervisors as the
proportion of disclosure

Proportion of female supervisors inmanagement positions

Ratio

Number of Occupational Accidents

Number ofpeopleProportion of Occupational Accident

Ratio

5

no fatal occupational injuries
in 2022 .

0 . 04 %Governance Issues

Board of Directors

Investors
Communication

Members of the Board of Directors

Number of
memebers

15

Members of the independent directors

Number of
memebers

3

Proportion of female directors

Ratio

13 %

Attendance rate of Board of Directors

Ratio

97 . 14 %Proportion of training hours for directors
and supervisors that in line with the training
fundamentals

Ratio

100 %

Number of investor conferences held by
the company

Number ofconferences

4

Appendix 5 Rules Governing the Preparation and Filing of
Sustainability Reports by TWSE Listed Companies-Plastics
Industry
Number

1

Type of
Indicator

AnnualDisclosure

Unit

Note

Total energy consumption

Quantitative

47 , 259 , 941

Billion joules

Percentage of externally purchased electricity

Quantitative

71 . 8Percentage(%)

Renewable energy usage rate

Quantitative0%

Percentage(%)

Since the GHG emissionsof Scope 1 , and Scope
2 in 2022 are still being
veriﬁed, the 2021 values
are disclosed

Total self-use energyNote( 1 )Quantitative

4 , 831 , 885

Billion joules

Total water withdrawal

Quantitative

20 , 830

Thousand cubic
meters(m 3 )Total water consumption

Quantitative

15 , 802

Thousand cubic
meters(m 3 )Weight of hazardous waste

Quantitative

5 , 635 . 07

Ton(t)

Percentage of recycled hazardous waste

Quantitative

66 . 57

Percentage(%)

Number of occupational accidents

Quantitative

5

Number of injured

Ratio of occupational accidents

Quantitative

0 . 04

Ratio

Plastic Products(Identify the primary
product items and their output in termsof the product categories)Note(2)Quantitative

43 , 419 , 074

NT$ thousand(depends on
product type)

Indicator

2

3

4

5

Since the water
footprints in 2022 are still
being veriﬁed, the 2021
values are disclosed

Note: (1) The total amount of self-use energy is calculated in accordance with the deﬁnitions of the "Renewable Energy Development Act", "Implementation Regulations Governing Renewable Energy Certiﬁcates " or relevant sub-laws(2) This appendix only discloses the primary manufacturing items and amounts due to the broad variety of product categories offeredby NPC. Other products include "chemical products (23%), electronic materials (46%) and polyester products (18%)." For relevant
information, please refer to "1.1.3 Operating Performance" of this report.

2022 Sustainability Report20163Nan Ya Plastics Corporation

Appendix 6 Independent Assurance Opinion Statement

19
164

Ongoing
Sustainable
Governance
Strategy

Product
Value
Expansion

Green
Environment
Management
Promotion

Creating a
Happy
and Safe
Workplace

The Pursuit of
Co-Prosperity
and a Better
HomelandAppendix2022 Sustainability Report20
165Nan Ya Plastics Corporation
General Manager's Office Business Analysis Group
Address : 201, TUNG HWA NORTH ROAD TAIPEI TAIWAN,REPUBLIC OF CHINA
Tel : 886-2-27122211
Fax : 886-2-27178533
Email : NPC ESG@npc.com.tw
www.npc.com.tw