Sustainable Governance
Create a co-living and co-prosperity environment with the earth.
In the recent years, global petrochemical and energy-intensive industries are facing potential risks and challenges in shortage of raw materials, industrial safety, environment pollution, climate change and energy issues.
Submerged in a myriad of issues that jeopardize sustainable development, CPDC came to realize that the current operational model will no longer be able to support the company for stable earnings and growth. Our only chance to realize our vision of “becoming a world-class company in production of petrochemical and plastic products” is to turn the risks in ESG into opportunities by confronting the challenges and actively pushing forward organizational reform to turn CPDC into a modern corporation.
2022~2023 CPDC’s Sustainable KPI
The Board of Directors is the highest governance body that is responsible for oversight and decision-making for the impact management of material topics, The CPDC ESG Committee conducts an impact assessment and ranks the issues with department heads through questionnaires and interviews and submitted for annual business planning and set relevant KPIs.
Nine 2022 CPDC Company-wide Sustainable KPIs were established and approved by CPDC Board on 2022/11/10, including green product, circular economy indicators.
Failure to achieve any of these KPIs will be negatively reflected on performance evaluation of senior executives and any financial incentives as part of their compensation packages.
| Material topic | Management indicators (KPI) | Corresponding SDG | 2022~2023 Goals | 2022~2023 Performance |
| Occupational health and safety | Pass the ISO 45001 occupational health and safety management system certification, establish a process safety management (PSM)system, and implement a quantitative scoring and signal light mechanism to provide a safe and hygenic workplace for employees. |
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Zero occupational disasters and accidents. | 100% achievement rate with no occurrence of disasters or accidents. |
| Climate actions, net-zero emissions policy and commitments | Establish 2005 as the base year, adopt scientific and quantitative targets, and set the following goals: 20% reduction by 2025; 50% reduction by 2030, and net-zero carbon emission by 2050. |
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Reduce by 20% by 2025. | Already reduced by 18.7% in 2022. |
| Pollution prevention and control (air, water, waste) (newly added topic) | 1. Through process optimization and equipment upgrading, we will continue to reduce air pollutant emissions during the production process. In terms of our management system, each plant uses the air pollutant emission intensity per unit of product set by the operational headquarters annually as the basis for its air pollutant quality management. 2. Scientifically-quantified targets have been adopted to reduce CPDC’s annual base year electricity consumption by 1%, water consumption by 2% and carbon emissions by 2%. |
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Since 2014, we have been using the phenol-ketone method, which produces much less emissions, and greatly reduced air pollutant emissions by 50%. | The amount of VOC, NOx, SOx were reduced by 43.7%, 68.2% and 88.8% respectively. |
| Green products, circular economy (covers innovation, quality management, product responsibility, and circular economy) | In response to green products and the circular economy becoming trends, the R&D department developed not only the advantages of existing raw materials, but also ester products, ethylene glycol products and hydrogenated products based on market intelligence. We have adhered to integrated production lines in order to increase the effectiveness of high-value products. |
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We take into consideration the environmental impacts, the innovation behind the products, and ways to reduce the use of energy and materials in every step of R&D, from design to the delivery of the products, in order to lessen the use of hazardous substances so as to provide sustainable manufacturing services; at the same time, we also strengthen the acquisition of patents to maintain the Company's long-term profitability. | A. No case of product defects or fines occurred. B. No case of violation of product liability occurred. C. 10 new patents were granted and the licensing process for them completed. |
| Information security | A. In 2022, we referred to the ISO 27001 information security management system framework and principles to formulate standards for documents related to information security, and set up an information internal control system to promote information security governance. B. Cooperate with the auditing unit to arrange the annual information security audit plan, conduct at least one evaluation each year, and introduce information security training. C. In 2023, we will introduce the ISO 27001 system to align with international standards in information security management. |
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2022 was the introduction period, so no targets were set. | A. 5 information technology professionals (including managers) participated in the training. B. 2 information security managers participated in 2 summits and seminars. C. 1,798 participants attended information security training sessions. |
| Innovation management, sustainable manufacturing, and digital transformation | A. Propose “facilitate the Company’s intelligence-driven digital transformation” in the annual business plan and provide data for decision making. 1. Use data analysis to know about our performance. 2. Assist in the scientific management of each unit. 3. Optimize online and offline management systems. |
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Scientific management: Each unit is linked to the Au-dio/Visual Command Center, and the KPI of each unit is incorporated. | A. By combining the three core technologies of IoT, DataTech and AI, we can achieve process optimization, smart industrial safety and smart services. Not only can we standardize tasks concerning the data management of three types of waste at each plant, we can include an alarm mechanism that sends notifications. |
| Talent recruitment, retention, and development | A. Implement the four management philosophies of “pursuit of excellence”, “innovation and change”, “allowing talents to play to their strengths” and “market orientation” to recruit and retain suitable talents. B. Incorporate talent development and management into each unit’s performance indicators. |
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| Integrity management, and corruption prevention | - |
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No deficiencies were found during the audit. | A. The Company had no significant violations in the 2022 audit. B. The signing rate for the Supplier’s Pledge of Corporate Social Responsibility was 100%. |
| Human rights policy, diversity, and inclusion | The CPDC Human Rights Policy serves as a reference for the Company and its associate companies when it comes to human rights. |
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We continue to strengthen our efforts in human rights education, training and promotion both within the Company and externally in order to realize our value for human rights, and we conduct human rights due diligence. | We completed human rights due diligence on 17 suppliers and 60 executives, and identified 11 risk issues. |
Zero defects, zero accidents, zero pollution
The core concepts of CPDC's business management are respect, performance and care. Under our customer-centered operational model, we continue to improve quality, striving to bring products and services that meet our customers' needs. And with respect to stakeholders' rights, we formulated sustainable development strategies and policies to address the issues of corporate governance, industrial safety, environmental protection, product development and innovation, supply chain management, pollution prevention, and community and employee care. Our goal is “Zero defects, zero accidents, zero pollution”.
Vision of Corporate Sustainable Development
Goal
Zero defects, zero accidents, zero pollution
Core Value
Excellence, Innovation, Respect, Care and Environment Friendly
Strategy
Supported by the four pillars, C,P,D,C, CPDC is committed to establishing effective govermance of corporate social responsibility practice and marching towards the goal of "Zero defects, zero accidents and zero pollution"
Approach
Commitment, Production, Disclosure, Communication
Sustainable Development Policy
CPDC pursues sustainable development and strives to become a world-class company. Under our customer-centered operational model, we continue to improve quality, striving to bring products and services that meet our customers' needs. In our pursuit of higher customer and shareholder values with respect to our customers, employees, suppliers, contractors and community residents, as well as occupational safety, employee health and the environment, we march towards the goals of sustainable development and corporate governance. In the future, CPDC will continue to promote sustainable development based on the new four pillars and the corresponding eight dimensions. The new four pillars are smart manufacturing (Clever), forward-looking governance (Prescience), value chain communication (Dialogue), and social care (Care).
C
Clever
We are introducing Smart Manufacturing 4.0 and create AI training modules based on existing big data.
P
Prescience
We ensure safety and security in work environment and the transport processes and continue to reduce energy consumption and the negative impacts on the environment.
D
Dialogue
We will continue to implement transparent and honest disclosure of sustainable development performance in answer to the demands of the investors and others key stakeholders.
C
Care
We will take the initiative to consult the internal and external stakeholders for their feedback as we pursue harmony in the society.
We expect to establish effective sustainable corporate governance through the above visions and the four pillars of sustainable development. In 2015, CPDC has set up the "Guidelines for Corporate Social Responsibility Practice", which will serve as the standards for the Company and all employees in all corporate social responsibility activities.
Goals of Corporate Sustainable Development
In 2015, we launched the medium-term project and action plans under the visions of sustainable development introduced above and supported by the four pillars. In the future, will integrate the various departments through the Corporate Social Responsibility Committee and implement action plans to achieve the goals of sustainable development.
Clever
- Introduce Industry 4.0 to monitor the use of energy and resources, promote reduction and recycling, and develop green petrochemical products.
- Strengthen strategies and goals for climate change adaptation and lay a foundation for green transformation.
Prescience
- Improve sustainable governance and disclosure of information based on international trends and best practices.
- Assess internal and external risks and master the true value of the Company.
Dialogue
- Improve the sustainable supply chain management mechanism and the resilience of the petrochemical industry.
- Maintain smooth communication with the key stakeholders and respond to their demands.
Care
- Strengthen talent recruitment and development systems and employee engagement to drive business transformation.
- Integrate community engagement programs at each operational location and establish a corporate strategy for public welfare investments.
Sustainability Governance Structure
CPDC's CSR structure has three major divisions: Administration Governance, Social Care, and Environment Sustainability. The three taskforces are led by CPDC's three deputy general managers. The deputy general managers report to the Chief CSR Officer, who is also the General Manager of the company. The Division of Investor Relation and Industrial safety and Environmental Protection Center jointly form the CSR Secretariat Office and collaborate to implement the tasks delegated from the three CSR taskforces.
The Administration Governance Taskforce takes charge for formulation and implementation of sustainable development visions and goals, disclosure of operational and financial risks and performance, procurement procedures and supply chain management, as well as stakeholder engagement. The Social Relation Taskforce promotes community service and social care events, labor rights and ethical conducts, legal compliance and information disclosure, as well as market and customer analysis and surveys; the Environment Sustainability Taskforce manages energy and climate change issues, product quality control and innovative R&D, green products, labor safety and health issues, pollution remediation, and environment/social participation.
