A Message from the Chairman CPDC’s Values, Principles, Mission, and Goals

CPDC promotes green transformation and integrates its goal of net zero emissions into the operations strategy of both its petrochemicals business and land development business.

In the past, the petrochemical industry was marked by high carbon emissions and high water consumption, thus CPDC has been actively promoting process improvement, smart production and the circular economy in order to increase production efficiency and reduce energy consumption in recent years.

As for our land development business, we have devoted our efforts to working with our subsidiary, Core Pacific Development Corporation, to build Core Pacific Plaza, a top-tier business park that meets the new international ESG standards and incorporates nature into business spaces so as to give office spaces a more leisurely feel. It is hoped that the Core Pacific Plaza will become a sustainable business park that is resilient, smart, livable, and low in carbon emissions.

We at CPDC fulfill our social responsibility by committing ourselves to the green transformation of our company. This is done to response Core Pacific Group’s principles of sustainability and responsibility to our society and the planet upon which we all dwell, and to take concrete action on our ESG policy. Be it our employees or our clients, we all have a similar belief in carrying out our responsibility. In truth, CPDC has a goal, which is to reduce our carbon emissions by 2% annually and reach net zero by 2050. By planning short, medium, and long-term carbon reduction pathways, we have made the United Nations’ SDG 13 the heart of CPDC’s sustainable development. Since the start of CPDC’s carbon reduction program in 2005, the company has invested $3.29 billion to implement 224 projects and still managed to reach its carbon reduction targets. Next, in addition to the driving the efficacy of our carbon reduction efforts through carbon reduction technology, we will keep up with times by introducing new technologies to realize our target of reaching net zero by 2050. Through our investments and the joint efforts of everyone at CPDC, the amount of carbon we have reduced equates to the carbon absorption of 1504 Daan Forest Parks.

CPDC’s Competitive Edge and Focus for Future Development

Using information technology, CPDC has built a carbon emissions module, the main purpose of which is to allow us to know how much carbon is actually emitted at every stage of the production process in real time and to calculate how much carbon is emitted by each piece of equipment using the data that is obtained. If we do not reach our cardon reduction targets, we can make adjustments immediately.

In addition, we have developed diverse markets for new high-value products, and we continue to create special-purpose nylon products, high-reflective optical materials, chemicals for electronics, electronics packaging materials, lithium battery additives, solid electrolytes, 5G high-frequency substrate materials, and materials for new energy vehicles. At the same time, we are working on the development of bio-based materials, biodegradable materials and green materials so as to move forward with the movement calling for green and sustainable development. Therefore, once we have successfully developed green products, we will be able to go further and help our customers save energy and reduce carbon. In other words, not only will we save energy and reduce carbon ourselves, but it is our hope that we will also be able to drive ESG initiatives on energy saving and carbon reduction through the industry supply chain. CPDC strives to become a green enterprise; we reduce our carbon footprint and expedite the completion of the Anshan Remediation project.

We were awarded four major awards in 2022 by TCSA: Taiwan‘s Top 100 Sustainable Companies Award, Traditional Manufacturing Industry-Category 1 Gold Award, Climate Leader Award, and Water Resource Management Leader Award. These awards were demonstrations of CPDC's efforts and achievement toward ESG. In addition, CPDC was selected as a Sustainable Yearbook Member by the S&P Global CSA Ratings for three consecutive years and is the only Chemical Company with such recognition in Taiwan.

Looking Ahead to CPDC’s 2025 ESG Commitments

Organizations in Taiwan and around the world have been formulating climate action plans in response to environmental issues. In January 2023, Taiwan renamed the Greenhouse Gas Reduction and Management Act as the Climate Change Response Act, and will soon introduce a carbon fee. International carbon tax mechanisms are also in the process of being formulated and implemented, such as the Carbon Border Adjustment Mechanism (CBAM) in the EU and the Clean Competition Act (CCA) in the United States. This makes “green costs” an integral part of the operating costs of a company and a strong influence on the company’s future competitiveness; already, it has become an important determiner of an enterprise’s survival.

CPDC will soon face increased green costs and demands from the upstream and downstream industrial chains. Therefore, at the end of 2021, we have already drawn up pathways and strategies for us to become a low-carbon, circular, and green enterprise and to reach net zero by 2050. We have also begun to consider internal carbon pricing and how to internalize the cost of pollution and emissions to encourage organizations at all levels of our company to engage in pollution reduction more vigorously and to adjust their strategies on a rolling basis in order to achieve our sustainability targets more quickly.

When facing climate change and global warming, our industry can’t pretend it’s not a part of the issue; everyone is involved. The impact of climate change on enterprises is twofold; not only does it affect revenue and profitability, but the costs borne by enterprises to respond to climate change are also considerable. In addition to collaborating with the government’s net-zero emission pathways and strategies so we can transition into a low-carbon, circular and green enterprise, CPDC will base itself on green petrochemicals and utilize the resources of the Core Pacific Group to continue to strengthen its own advantages, work together with partners and stakeholders to move towards sustainable operations, and jointly drive positive developments in our environment, society and economy while playing a key role in the process.