Investment

As environmental regulations become increasingly stringent both domestically and internationally, governments, in response to greenhouse gas reduction and carbon neutrality goals, are imposing higher management requirements on enterprises. For example, companies are required to adopt a certain proportion of renewable energy, implement electricity transition measures, and promote packaging reduction as well as product carbon footprint disclosure. If enterprises fail to promptly align with policy-driven transitions, they may face compliance risks, rising operating costs, increased supply chain pressures, and even the loss of market competitiveness. Therefore, proactively addressing transition requirements has become a critical issue for companies in pursuing sustainable operations.

1. Failure to comply with government regulations on carbon emissions and energy use may result in the payment of carbon fees, carbon taxes, or fines.

2. As the government continues to promote renewable energy policies—such as mandatory green electricity quotas and obligations for large electricity users—enterprises will be required to allocate additional resources to install renewable energy facilities or procure green electricity.

3. With consumers placing increasing emphasis on low-carbon and environmentally friendly products, companies that fail to respond with appropriate measures may face risks of reputational damage or a slowdown in sales.

4. International brands and major corporations are gradually requiring supply chain partners to conduct carbon inventories and set emission reduction targets. Enterprises unable to align with net-zero transition requirements risk losing orders or facing the termination of business collaborations.

1. The increasing frequency of extreme weather events, such as typhoons and floods, may result in power outages, unstable electricity supply, logistics disruptions, or damage to facilities in plant sites or supply chain locations, thereby affecting production schedules and business continuity.

2. Climate change-induced uneven rainfall distribution may cause droughts or water restrictions, posing risks to production processes that rely heavily on water resources and potentially leading to operational disruptions or additional costs for water sourcing and treatment.

3. Rising temperatures are expected to increase the demand for energy in air conditioning and process cooling, thereby elevating the electricity burden and carbon emission pressures. Higher temperatures may also cause equipment overheating and reduced efficiency, further impacting production stability and operating costs.

1. Extreme weather events (such as typhoons, heavy rainfall, and floods) may damage machinery, plant facilities, and pose threats to personnel safety, thereby affecting operational stability and workforce allocation, while also incurring additional repair costs.

2. Abnormal weather conditions may disrupt or delay the supply of raw materials, requiring extended storage periods and additional inventory days to mitigate production risks. This could further result in factory scheduling delays and hinder production progress.

3. Rising temperatures and climate instability may increase the frequency and intensity of cooling and air conditioning system usage, leading to higher energy consumption and operating costs. At the same time, enterprises may face reduced raw material supply and heightened price volatility.

1. The Company is actively planning to adopt various renewable energy facilities while simultaneously evaluating the installation of energy storage systems. These measures aim to enhance energy self-sufficiency, reduce reliance on conventional energy sources, and effectively lower carbon emissions.

2. By optimizing production equipment and integrating processes of similar nature, the Company reduces the frequency of cleaning-in-place (CIP) operations, thereby significantly decreasing water consumption and wastewater generation. This not only saves water resource costs but also ensures compliance with increasingly stringent water resource management regulations.

3. The Company continues to advance process and equipment optimization to improve product yield and reduce food waste generated during production. Combined with the adoption of green electricity and the installation of energy storage systems, these efforts demonstrate the Company’s commitment to environmental friendliness and sustainable operations, while also strengthening brand image and stakeholder trust.

1. Continue to implement energy conservation and carbon reduction programs to reduce energy consumption while enhancing resource recycling and reuse efficiency.

2. Future plant facilities will be designed and constructed in accordance with green building standards, equipped with low-energy, high-efficiency systems to further optimize energy management and strengthen environmental sustainability.

3. Actively invest in the research and development of low-carbon products and services, integrating innovative technologies with low-carbon energy applications to expand market competitiveness and meet consumer demand for sustainable products.

Environmental Regulatory Requirements

Domestic and international regulations, as well as government greenhouse gas management requirements, mandate that energy-intensive enterprises adopt a certain proportion of renewable energy, promote packaging reduction, and conduct product carbon footprint assessments.

1. Payment of carbon fees increases operating costs.

2. Rising expenses for the procurement of renewable energy certificates.

3. Regulatory fines increase operating expenses.

1. Strengthening green R&D and innovation.

2. Improve energy efficiency and invest in green energy facilities.

Extreme Weather and Climate Change Related Physical Risks

The frequency and intensity of typhoons and floods are increasing, rainfall patterns are changing, and average temperatures are rising.

1. Plant shutdowns may lead to revenue decline.

2. Damage to machinery and equipment may result in property losses.

3. Increased electricity consumption may raise operating expenses.

1. The location of a new factory is determined by taking into account the risk of natural disasters.

2. Assess natural disaster risks at existing facilities and implement risk mitigation measures.

3. Construct green buildings and utilize renewable energy.

Green Development Opportunities

Develop renewable energy and energy storage systems, enhance water use efficiency, reduce the frequency of cleaning-in-place (CIP) operations, optimize processes to improve product yield, and minimize food waste.

1. Additional expenses are incurred for the installation.

2. Reduced water and electricity costs.

3. Eligibility for energy-saving equipment subsidies.

4. Enhanced brand reputation through diversified products and services.

1. Actively implement chiller replacement projects at plant facilities to improve energy efficiency and reduce energy consumption.

2. Continue to promote lightweight packaging design to reduce material usage, achieve energy conservation and carbon reduction, and minimize environmental impact.