As part of our strategic planning, operational strategies are integrated across our business units: methanol, solvents, electronic chemicals, rubber, and performance plastics. An ESG Committee directly under the board of directors is in place, chaired by the chairman of the board of directors and comprised of seven cross-departmental sustainability teams. Responsible personnel of all departments and sites are assigned to appropriate categories. By means of a top-down approach coupled with horizontal collaboration, medium- to long-term ESG objectives are formulated each year to drive sustainability.
In compliance with the six United Nations Principles for Responsible Investment, or PRI, we incorporate ESG in our governance and operational strategy, mapping out and implementing ESG objectives and developing a mechanism for collaboration with all stakeholders and the supply chain. Bottlenecks, even if any, do not hinder our continuous drive toward sustainable growth.
We keep ourselves abreast of policies and legislation, domestic and foreign alike, that are applicable to each business outlet, to ensure adherence to the core values of corporate culture and proper management of operational risk. GHG emissions are reduced by artificial intelligence, energy saving and carbon footprint reduction measures, and best available control technology. We also minimize the environmental impact of each stage of the product life cycle by carrying out source management in the form of innovation from the conception phase of R&D.
In our 10-year plan thus updated in 2019, short-, medium- and long-term goals were drawn up for five sustainability areas based on the average unit productivity and emission of the Taiwan sites of the three-year period from 2016 to 2018. Measures including periodic audits, ethical operations, personnel training, proactive risk management, and identification of opportunities from risks were instituted to create shared prosperity across the world.
Five areas of sustainability governance
1. Green operations
Sustainability strategy: Industrial safety and environmental protection provide a “license to operate”
|GHG emission reduction
||(Taiwan) Reduce GHG emissions by 5% from the baseline
(China) Promote energy saving and carbon reduction measures to achieve emission reductions
|Reduction of energy consumption (Taiwan sites)
||Lower unit consumption by 1.5%
||Reduce VOC emissions by 15% each year
Lower NOx emissions by 60 from the baseline year
|Water resource management
||Recycled water accounts for 20% of the total water consumption
||Organize a hazardous waste task force to procure the acceptance of 70% of hazardous waste by reuse organizations to ensure more effective utilization of resources
2. Shared prosperity
Sustainability strategy: “ECO+ Prosperity 100%” We truthfully answer to employees and society at all times, strengthen stakeholder communications, and share our goals and vision/product applications/sustainability strategy with the outside world.
||Innovation ecosystem promotion and connection
Advocate the use of eco-friendly products, promote circular economy, and communicate our sustainability vision and strategy/sustainable product applications and processes to the public
3. Employee care
Sustainability strategy: Build up a best place to work with LCY core values
|Employee health risk
||Achieve a lower critical illness incidence than other companies in the industry.
Maintain zero employee turnover due to health issues
Keep CO2 concentrations in LCY’s work environment below national standard
Reduce annual group insurance benefits by 10%
||0%0% workplace fatality
Long-term: zero workplace accident
|Talent development and cultural diversity
||90% employee Net Promoter Score (NPS)
Over 50% EAP coverage
34% employees with higher education (an annual increase of 1% on average)
Higher proportion of female supervisors than other companies in the industry
4. Business model innovation
Sustainability strategy: Evaluate the impact of each stage of the product life cycle, from production to sale, on the environment and society, and offer clients products with a low environmental footprint, low carbon footprint, and low water footprint.
|R&D of innovative materials/green chemistry (Reduce the carbon footprint of products)
||Increase the annual sales volume by 76% from 2019
(Reduce consumption of raw materials)
|Increase the annual sales volume by 43% from 2019
|Innovative business development (Enhance the utilization of water resources)
||Increase the total recycling rate of water resources that use LCY’s MBR products by 950% from 2019
|Safety and environmental management of chemicals
||Adopt operational discipline practices, such as introduce AI technologies and improve site automation, to drive operational efficiency in the factories, cut down chemical consumption, and lower the rate of internal shutdowns. The resulting reduction of chemical consumption during startups and shutdowns will contribute to environmental mitigation.
5. Sustainability governance
Sustainability strategy: Advocate for and participate in sustainable development; zero tolerance for accidents
|Address emerging issues in sustainable development, and advocate for and participate in sustainable development
||In addition to maintaining our participation in advocacy groups (TCIA, TRCA, Petrochemical Industry Association of Taiwan), continue to assess the extent of support for and participation in international sustainability advocacy programs
- UN Global Compact
Human rights: UN Global Compact
- CDP (Carbon Disclosure Project) CEO Water Mandate
Water: CDP (Carbon Disclosure Project) CEO Water Mandate
- Together for Sustainability
Supply chain: Together for Sustainability
|Management of changes to legislation
||Develop a global ESH legislative management system
|Occupational safety and emergency response
- Three Noes (no explosion, no leakage, no casualty)
- Safety first
|Reduce the accident rate by 20% from the baseline year