Content Far Eastern New Century Corporation 2020 Sustainability Report | Content Special Report 14 About This Report 1 Message from the Chairman Protect the Nation, Sustainability Strategy Blueprint Unite Against the Pandemic FENC’s Contribution to UN SDGs Identification of Stakeholders and n e e er , C ui y spread ro out rea s in sia to a o a Material Topics pande i y t e end o ay , o er i ion peop e were in e ted and o er Boosting Stakeholder Dialogue i ion peop e a e passed away ordin to t e or d an and nternationa onetary PE/PP and PE/PET Composite Fiber – The Skin-Friendly Inner Layer n t e past, ost a e as s on t e ar et were ade o FENC ta es ad anta e o t e Special Report Fund, o a e ono y s ipped y o er in , resu tin in an es in onsu er e a iors and t e wor ro o e ode t at ed to restru turin o o a supp y ain supp eness o po yester otton, w i is ent er on u an s in, to produ e ydrop i i , odor ess, 1. Protect the Nation, Unite against the Pandemic e pande i aused su stanti e i pa t on orporate operation FENC supp ies t e ost ow pi in and ypoa er eni a e as s t at a sor drop ets easi y 2. Developing Circular Economy uttin ed e ateria s to t e o a ea t are industry urin t e pande i , t e Co pany and Sustainable Value esta is ed arious anti pande i easures to ini i e its i pa t Microfiber – The Melt-Blown Non-Woven Middle Layer 3. Promoting Sustainable FENC pioneered t e irst i ro i er i ter in t e Development with Sustainable Finance wor d, w i an e p a ed on top o t e e t own non wo en a ri in t e idd e ayer o a e as s Fostering Robust Governance Co posed ain y o nano i er, t is produ t an e used repeated y a ter rinsin , and o s t e ar er Enabling Unlimited Innovation Protecting Public Health by Applying Innovative Materials Towards Pandemic-Fighting Products parti es su as t is a so superior to re u ar Navigating a Green Future edi a as s w en it o es to i terin a teria, w i is a ost as e e ti e as N as s w i e usin Creating Inclusive Society FENC is apa e o produ in edi a rade persona prote ti e e uip ent urin t e ess e t own non wo en i er in t e idd e pande i , t e Co pany ra ped up t e ateria supp y, produ tion and app i ation ayer e i ro i er is twi e as e e ti e in redu in Cultivating Compassionate Bonds reat in resistan e en used to produ e N e o a pande i as aused s orta es in edi a as s and anti pande i supp ies FENC as s, it e ps users reat e wit ease and redu e Advocating Balanced Coexistence de e oped inno ati e ateria s and anti pande i produ ts, ta in pande i i tin to a new e e y dis o ort o erin produ ts wit t e i est ua ity or ea t are wor ers and t e pu i , FENC e ps stop t e Appendix spread o C and prote ts pu i ea t Polyester – Blood Collection Tube edi a wor ers ust test ood sa p es or o o at C , FENC app ies its ore stren t s in t e de e op ent o arious C in e tions and t e nu er o suspe ted anti pande i produ ts, i in edi a pro essiona s and t e pu i t e est prote tion to sa e uard ases as dri en up de and or testin as we as pu i ea t Current y, FENC produ es t e raw ateria s or edi a rade a e as s in aiwan and testin supp ies and ateria s, in udin ood an ai e produ ts are so d wor dwide, pro idin t e ost ad an ed ua ity ateria to o a o e tion tu es E tra pre autions ust e ta en to edi a and ea t industries pre ent unne essary e posure to t e irus ass is t e on entiona ateria or ood o e tion tu es n addition, FENC donated N i ion to t e Centra Epide i Co and Center t rou FENC de e oped an inno ati e E ateria as rep a e ent t o ers ass i e trans u en e wit non pro it oundation, i tin t e pande i a on side t e e ers o t e pu i ore dura i ity t is a so easi y transported and stored Anti-Fogging PET Film – Anti-Fogging Face Shield Medical Gown Content C an e trans itted t rou e posure e u ar edi a Far Eastern owns tendNew toCentury e un reat a e Corporation and 2020 Sustainability Report | Content ro t e eyes, nose and out Fa e as s o er un o orta e or ea t are pro essiona s ypi a y desi ned to 15 About This Report a de ree o prote tion or t e enera pu i e e disposa e, t ese owns are not riend y to t e en iron ent Message from the Chairman ea t are pro essiona s, owe er, are at a i er FENC pioneered prote ti e owns wit odor ana in i er as Sustainability Strategy Blueprint ris o e posure ro drop ets FENC we as reat a e and waterproo oatin e owns are a so FENC’s Contribution to UN SDGs anu a tures a e s ie ds wit po yester i e water repe ent and anti a teria e odor ontro i er is ore Identification of Stakeholders and ydrop i i te no o y i es t e produ t dura e, was a e and en iron enta e new own rea es Material Topics anti o in property, o erin etter ision and t e i est standard, e e , w i is i per ea e y Boosting Stakeholder Dialogue sa ety or edi a pro essiona s ood and t e irus and reat y en an es stren t and o ort
Special Report 1. Protect the Nation, Unite against the Pandemic 2. Developing Circular Economy and Sustainable Value 3. Promoting Sustainable Protecting Employee Health with Robust Anti-Pandemic Measures Development with Sustainable Finance in e C out rea s erupted, o a e ono i rowt rate de i ered ne ati e nu ers or t e irst ti e in years Ear y on, a FENC units responded y a ti atin Fostering Robust Governance e er en y response easures e innin in Fe ruary , a FENC sites o owed t e Co pany s anti pande i po i ies to prote t t e ea t o a e p oyees Enabling Unlimited Innovation
Navigating a Green Future Establishing Effective Anti-Pandemic Measures for Critical Moments
Creating Inclusive Society
Cultivating Compassionate Bonds Advocating Balanced Coexistence Appendix i e e e e uti es or ed e er en y E terna personne are not a owed to enter Fa e as s ust e worn at a ti es upon ta are di ided to wor on di erent days at o esti and internationa usiness trips response tea s to present re u ar status Co pany pre ises un ess ne essary enterin Co pany pre ises separate o ations ust e onitored updates ro a o ations
e Co pany o p ies wit o ern enta interna and e terna personne enterin ta ust report to E p oyee ea t and e Co pany o pi es and oordinates rodu tion sites in C ina ust set easures to ensure e p oyee ea t and Co pany pre ises ust a e t e Care yste dai y to tra ea t t e o e tion o anti pande i supp ies to uarantine ones at sta dor itory or o p ian e te perature ta en and spray ru in onditions ensure ade uate prote tion or sta durin t ose returnin ro re ote o ations a o o or saniti er usiness ours Content Optimizing Workflow to Ensure Steady Capital AdjustFar Product Eastern NewSales Century and Service Corporation to Maintain 2020 Sustainability Corporate Report Profit | Content 16 About This Report e Co pany uti i es ore stren t s to pro ote its anti pande i produ ts, iti atin Message from the Chairman i pa ts ro sa es de ine in ot er areas Sustainability Strategy Blueprint o downs around t e wor d pose e port arriers e Co pany e pands t e do esti FENC’s Contribution to UN SDGs ar et and di ersi ies usto er ase to ini i e ris s Identification of Stakeholders and e Co pany ose y onitors ar o arriers, s ippin o panies and an s to ensure e Co pany a e erates di ita e s ort ter p an is to redu e unne essary Material Topics trans or ation, in udin up radin as and apita e penditures t e id and on ti e de i ery ease re er to t e se tion on Coordinatin ustaina e upp y C ain Boosting Stakeholder Dialogue oud syste , ideo on eren in on ter p an is to i pro e oan stru ture to e e op ent so tware and e usiness syste redu e i uidity and inan in ris s Special Report 1. Protect the Nation, Unite against the Pandemic 2. Developing Circular Economy and Sustainable Value 3. Promoting Sustainable Development with Sustainable e Co pany introdu ed to e Co pany stren t ens t e tra in e Co pany onstru ted usto er Finance e e ute pro e ts t at re uired repetiti e o a ount re ei a es and o erdue to and produ t pro ita i ity ana ysis and syste ati anua operation, a ie e ero ad de t durin t e syste to opti i e t e orderin Fostering Robust Governance ini i in restri tions on p ysi a pande i ease re er to t e se tion syste ease re er to t e se tion on operations i posed y t e pande i on er e tin is ana e ent ui din Custo er apport Enabling Unlimited Innovation
Navigating a Green Future
Creating Inclusive Society
Cultivating Compassionate Bonds Advocating Balanced Exemplary Initiative That Led WHEF Coexistence Out of the Pandemic EF is a FENC produ tion site o ated in u an, u ei ro in e in C ina, t e epi Appendix enter o t e C pande i n anuary rd, , t e City o u an de ared a tota o down s t e i est ran in e e uti e, ant ana er an an u insisted on stationin at t e p ant wit t e se urity uards to prote t Co pany property and o e t anti pande i supp ies en t e o down was ina y i ted, u a ted ui y to app y or p ant reopenin , a in EF one o t e irst in u an E ono i and e no o i a e e op ent one to reopen e p ant ui y returned to t e pre pande i e e o produ tion u s de otion and perse eran e oosted t e ora e and so idarity, w i was re o ni ed in Far Eastern pirit ward wit E e en e in E e p ary nitiati e Content Far Eastern New Century Corporation 2020 Sustainability Report | Content 17 About This Report FENV Recognized with Outstanding Cohesion Program for the New Norm and Message from the Chairman Anti COVID-19 Award New Strategy in the Post-Pandemic Era Sustainability Strategy Blueprint FENC’s Contribution to UN SDGs n pri t , , FEN re ei ed utstandin nti C e Far Eastern Con ention at ers orporate e e uti es at t e year end to onitor internationa Identification of Stakeholders and Material Topics ward presented y ietna enera Con ederation o a our in trends in t e post pande i era Fie d e perts are in ited to s are t eir oresi ts in o a trends Boosting Stakeholder Dialogue n ướ ro in e e award re o ni es FEN or i p e entin a id t e C pande i e oitte aiwan was a so in ited to ondu t a one day wor s op wit e e ti e anti pande i easures a on industry peers in n e perts eadin t e intera ti e dis ussions and s arin sessions to or u ate orporate strate ies in Special Report ướ ro in e e p ant is one o t e two enterprises winnin t is response to t e pande i 1. Protect the Nation, Unite against the Pandemic onor in n ướ ro in e e ori ina wor s op or at was desi ned y e oitte o a or its o a ients is wor s op, 2. Developing Circular Economy w i entai s e o ery and eyond to e p ore new et odo o y in response to C , is and Sustainable Value usto i ed or FENC to e a ine t e i pa t o C on ey orporate operations, in udin 3. Promoting Sustainable Development with Sustainable an es in usto er de and, as ow ana e ent, supp y ain ad ust ent, u an resour es Finance opti i ation and di ita trans or ation y pro idin o pre ensi e assess ents on orporate operations, t e wor s op e ps t e e e uti es understand t e post pande i approa toward Fostering Robust Governance Enhance Anti-Pandemic Training with orporate operation and or u ate orrespondin strate ies Enabling Unlimited Innovation Incentives for Online Learning urin t e e ent, e perts a i itated in dept dis ussions re ardin FENC s supp y ain, di iti ation and usto ers, and e p ored ways o o tainin riti a raw ateria s a id supp y ain Navigating a Green Future i pa t to a oid interruption in t e produ tion ine so dis ussed are t e esta is ent o s art Creating Inclusive Society urin t e C pande i , t e u ou City o ern ent a tory and ways o redu in t e i pa t ro e p oyees w o are una e to return to wor due to pro ided to as in enti es or t ose w o o p eted uarantine arti ipants ana y ed an es in usto er de and durin t e pande i and e a ined Cultivating Compassionate Bonds on ine trainin rodu tion sites in u ou esta is ed trainin an in usto er re ations under t e new nor is wor s op not on y e ps t e e e uti es stay pro ra s or t e entire sta to i t t e pande i rainin in udes in or ed on industry an es Advocating Balanced Coexistence pande i pre ention and ontro , sa e produ tion and re u atory in t e post pande i era, ut Appendix re uire ents ta are en oura ed to pra ti e se earnin to a so ui ds o esion and en an e pande i i tin s i s tota o , e p oyees onsensus, esta is in o p eted , ours o trainin riti a strate ies t at oster orporate stren t s in t e post pande i era Content Far Eastern New Century Corporation 2020 Sustainability Report | Content 18 About This Report Special Report 2020 Far Eastern Ishizuka Green PET Corporation Message from the Chairman 2 (FIGP) built the second production line. Sustainability Strategy Blueprint Developing Circular Economy and ‧FENC acquired the rPET FENC’s Contribution to UN SDGs Sustainable Value manufacturer, Phoenix Identification of Stakeholders and Technologies International, LLC. Material Topics FENC is the leader in global rPET industry, which has given new life to waste PET bottles. ‧In light of growing demand for Boosting Stakeholder Dialogue For years, the Company has been developing chemical recycling technology for waste PET green products, the recycling and polyester to amplify the effects of circular economy. A breakthrough came in 2020, which 2019 Special Report business unit of Oriental makes recycling and remanufacturing waste apparel and textiles possible. In addition, FENC’s Resources Development Limited is 1. Protect the Nation, Unite against unique ocean plastic recycling and remanufacturing technology helps protect marine habitat. the Pandemic separated into Oriental Green 2. Developing Circular Economy The Company is reaching sustainable development in the polyester industry with circular Materials Ltd. (OGM). and Sustainable Value economy, making the Company an essential link in the global green supply chain. ‧FENC established the pilot plant 3. Promoting Sustainable Development with Sustainable for chemical recycling. Finance Recycling for Advanced Deployment The recycling technology is refined, Fostering Robust Governance 2017 which boosted production capacity. Enabling Unlimited Innovation 2016 2012 ‧FENC collaborates with adidas® and Parley for the Navigating a Green Future 1988 FENC established Far Eastern Oceans on the development of Ocean Plastic. Creating Inclusive Society FENC invested in building Ishizuka Green PET Corporation ‧Production began in Plant 2 in Taiwan. Manual the first PET bottle 2010 (FIGP), expanding its production bottle recycling is now replaced by machines, Cultivating Compassionate remanufacturing plant in territory to Japan. which expands the processing capacity to over Functional fabrics made with Bonds Taiwan – Taiwan 50% of waste PET bottles in Taiwan. waste PET bottles by FENC Resources Recycling Co., Advocating Balanced are the chosen materials for Coexistence initiating circular economy 2006 soccer jerseys during the production model with FENC obtained 100% Appendix 2010, 2014 and 2018 FIFA Production Sites waste recycling and reuse. of the shares of Taiwan World Cup. FENC put the Resources Recycling international spotlight on Co., which is Taiwan during the sports consolidated into the events, and the press U.S. recycling business unit China Japan crowned FENC’s innovation of Oriental Resources the pride of Taiwan. Development Taiwan Limited. Philippines Malaysia Vietnam Current production sites Future expansion Content Far Eastern New Century Corporation 2020 Sustainability Report | Content rPET Production Capacity rPET Industry Status 19 About This Report
Message from the Chairman World’s NO. World’s NO. 1 Sustainability Strategy Blueprint 2 Recycled Ocean rPET Supplier Polyester Supplier FENC’s Contribution to UN SDGs 1,500,000 1,000,000 metric tons World’s NO. Identification of Stakeholders and 482,000 metric tons 1 Material Topics metric tons World’s No. 1 Food-Grade Global Leader rPET Supplier Boosting Stakeholder Dialogue Mid-term Goal Long-term Goal 2020 2030 Special Report 2025 The Only Overseas Recycling 1. Protect the Nation, Unite against World’s NO.1 and Remanufacturing Supplier the Pandemic Recycled Polyester Acknowledged by the Japan Containers Filament Supplier 2. Developing Circular Economy and Packaging Recycling Association and Sustainable Value 3. Promoting Sustainable Development with Sustainable Finance Environmental Performance 2020 Recognitions
Fostering Robust Governance Waste Reduction GHG Reduction 4 Enabling Unlimited Innovation FENC’s contribution to waste reduction FENC’s contribution to carbon reduction Highest Consecutive Honor Years Environmental Protection tCO2e/year Navigating a Green Future 21,000,000,000 900,000 Administration PET bottles/year The equivalent of carbon Executive Yuan TCSA Winner of Outstanding Enterprise Circular Economy Creating Inclusive Society The bottles may circle absorbed by 2,300 Daan Forest Parks in Circular Economy – Two Star Leadership Award the earth 120.5 times Cultivating Compassionate Bonds
Certificate Advocating Balanced Highest of Coexistence Honor Appreciation Appendix Compared to conventional PET resin production, Taoyuan City using recycled PET bottles as the raw material Global Views Monthly Government CSR Winner in Participating in reduces GHG emissions by 63% Environmental Sustainability World Oceans Day
Food-grade Approval Recycled Content Certification Green Mark Product Certification Far Eastern New Century Corporation 2020 Sustainability Report | Content Content New Circular Economy Solution - 20 About This Report Breakthrough in PET Recycling Technology Saving Oceans with Circular Economy - Ocean Recycling Project Message from the Chairman Sustainability Strategy Blueprint PET bottles account for 1/3 of the downstream applications for PET. The remaining 2/3 are used towards polyester fiber, which is a widely FENC’s Contribution to UN SDGs used material for apparel and textile. Most textile products blend at least two different fibers together, Identification of Stakeholders and consist of multiple pigments and use accessories such as zippers and buttons, making recycling a Ocean plastic is a critical threat to marine habitat. Beginning in 2016, FENC collaborates with adidas® Material Topics difficult task. and Parley for the Oceans on the Ocean Plastic project, keeping waste plastics from threatening the ocean. In Boosting Stakeholder Dialogue FENC’s latest TopGreen®ChemCycle technology adopts the chemical recycling approach. In 2020, the scope of the project was expanded, capturing over 6,000 metric tons of ocean plastic, which were addition to PET bottles, which is relatively simple in composition, the technology is capable of converted into new products. Special Report recycling other PET products such as apparel, textile and packaging materials, which consist of a 1. Protect the Nation, Unite against Taiwan is deeply concerned about ocean the Pandemic mixture of materials. Through chemical approaches, these products are transformed into PTA, a main governance and blue economy. The Ocean 2. Developing Circular Economy raw material for PET production. rPTA can be used to produce all PET products with quality that rivals and Sustainable Value those made of petrochemical materials. Conservation Administration of Ocean Affairs 3. Promoting Sustainable FENC’s TopGreen®ChemCycle technology leads industry peers and has been patented in Council established Marine Debris Recycling Development with Sustainable Taiwan, U.S. and Australia. Production has begun at pilot plants in a minor scale. In July 2020, Coalition on the 2020 National Oceans Day. Finance TopGreen®ChemCycle was adopted by CCBJI, the Coca-Cola bottler in Japan, and large-scale FENC was invited to join the coalition and is Fostering Robust Governance commercialization can be anticipated. responsible for remanufacturing waste PET FENC has found a solution to the long-term environmental dilemma caused by waste apparel collected from the ocean. Enabling Unlimited Innovation and textile products, leading the PET recycling industry into a new chapter. Environmental Protection Administration implemented Navigating a Green Future Marine Waste High Circular Utilization Promotion Program in 2020. Ocean plastics collected from the beach cleanups are Creating Inclusive Society Zero Waste Through Recycling turned into clothing made of materials that contain 96% of waste and Remanufacturing Cultivating Compassionate PET bottles. The innovation challenged the existing recycling Bonds and textile technology in Taiwan. This program also pioneered Advocating Balanced Plastic film and lid on PET bottle the world’s first verification mechanism. OGM, a subsidiary of Coexistence FENC, collaborated on the project with the government, Part of the plastic film on a PET bottle is made of PVC; the lid is made suppliers and international verification agencies. The result sets Appendix of PP and PE, which prevent them from being recycled and a paradigm for the recycling and reuse of marine debris. remanufactured with the PET bottles. (Chinese) To reach zero solid waste during production, FENC invested in solid th waste incinerators to turn plastic film into thermal energy to power the On June 4 , 2019, Mayor Wen-Tsan Cheng of Taoyuan City production, while the lids are recycled and remanufactured into plastic signed the MOU to recycle and reuse ocean PET bottles with FENC. pallets. Beginning in June 2019, 11 volunteer groups consisting of coastal guards as well as environmental fleets from Yongan, Zhuwei and CPC Corporation in Taoyuan City Non-polyester content in blended fiber conducted beach and ocean cleanups. The waste PET bottles collected were sent to FENC to produce Non-polyester content in blended fiber cannot be runner’s jerseys and other green products, which were gifted to the residents and volunteers who transformed into raw materials through chemical recycling. participated in the cleanup campaigns through Taoyuan City Government as a token of appreciation. This FENC collaborates with startups and turned non-polyester completes the cycle of saving the ocean through recycling and reusing plastic waste. textile into fuel rods, replacing coal to generate power in In 2020, FENC produced 400 pieces of clothing using waste PET bottles as gifts to the volunteers who the boilers. safeguard the coastal environment. Content Far Eastern New Century Corporation 2020 Sustainability Report | Content 2020 Engagement 21 About This Report Message from the Chairman FENC has set the paradigm for industry peers with its production technology as well as recycling and remanufacturing model. In addition to the industry peers in Taiwan, FENC has also established the best practice of circular economy for the international community. The Company frequently receives visitors from international governments or invitations to speak at international forums. In 2020, in-person Sustainability Strategy Blueprint events decreased drastically due to the COVID-19 pandemic. Regardless, FENC continues its commitment to external communication and engagement, strengthening multi-lateral cooperation and FENC’s Contribution to UN SDGs increasing public awareness by participating in sharing sessions, promotional campaigns and exhibition. Identification of Stakeholders and Material Topics June 8th Boosting Stakeholder Dialogue Taiwan celebrated the first National Oceans Day. FENC participated with exhibition at the Marine Debris Recycling Coalition area. During the th th June 25 and 26 Special Report event, Minister Chung-Wei Lee of Ocean 1. Protect the Nation, Unite against Affairs Council, Director-General Hsiang-Wen FENC was invited to speak at the Pandemic Huang and Deputy Director-General Packaging Recycling Organization 2. Developing Circular Economy Xin-Zhen Song of Ocean Conservation Vietnam (PRO-Vietnam) to share the and Sustainable Value Administration and Ambassadors of Belize, Company’s success in recycling with
3. Promoting Sustainable Nauru and Tuvalu visited FENC’s exhibition up to downstream suppliers as well as Development with Sustainable and were deeply impressed. governmental authorities in Vietnam. Finance
Fostering Robust Governance July 16th th th FENC was invited to speak at the seminar for textile July 18 to 26 Enabling Unlimited Innovation economic and trade development, Sharing Session on FENC was invited to participate in the World Oceans Day exhibition held Navigating a Green Future Development of Environmental Textile – Methods and Applications on Recycling and Remanufacturing of PET Bottles. by Taoyuan City Government to showcase FENC’s accomplishments in recycling and Creating Inclusive Society st August 31 reusing marine debris. Ocean Conservation Administration of Ocean Affairs Council held a Cultivating Compassionate seminar on Marine Debris Circular Platform Exchange. FENC was invited to Bonds share its innovative R&D efforts and success stories of turning marine debris Advocating Balanced into functional textiles. September 25th Coexistence FENC conducted a discussion with Recycling Fund Appendix November 3rd and 10th Management Board of Environmental Protection Administration, The Ministry of Foreign Affairs, Ocean Affairs Council, American Executive Yuan and distinguished professor Allen H. Hu from Institute in Taiwan, Japan-Taiwan Exchange Association, Netherlands Institute of Environmental Engineering and Management of Office Taipei and Industry Technology Research Institute co-organized the National Taipei University of online workshop, Global Cooperation and Training Framework (GCTF) – Technology on establishing Addressing Marine Debris with Circular Economy. During the event, all classification system for parties exchanged views and experiences on tackling waste management recycled plastics. At the issues such as marine debris. The online workshop drew nearly 700 participants from the event, FENC provided government, industry, academia and NGO in 16 countries. FENC was invited as the speaker to recommendations from the share with experts from Taiwan, Japan, the Netherlands and U.S. the story behind recycling and industry perspective for the reusing waste PET bottles, and how the Company turned them into high value sneakers and government representatives. sports jerseys to improve the value of circular economy. Content Far Eastern New Century Corporation 2020 Sustainability Report | Content 22 About This Report Special Report Message from the Chairman 3 Sustainability Strategy Blueprint Promoting Sustainable Development FENC’s Contribution to UN SDGs with Sustainable Finance Identification of Stakeholders and Material Topics s e tre e weat er patterns row se ere, orporations around t e o e are rowin Boosting Stakeholder Dialogue ore a ert re ardin i ate re ated ris s ustaina e inan e pro ides onsistent undin or orporations to ontinue sustaina e de e op ent, a in orporations ore wi in to de ote Special Report resour es into sustaina i ity transition FENC issued t e irst Con erti e ond C in aiwan FENC’s Key Financial Planning Goals 1. Protect the Nation, Unite against the Pandemic in t e s in e t en, t e Co pany ontinues to reate en ar s in inno ati e inan in i n wit o a inan ia trends 2. Developing Circular Economy or t e nation in e , FENC as issued unpre edented sustaina e inan ia produ ts, Forward-looking: and Sustainable Value o w i were issued in 3. Promoting Sustainable DNA for innovation: et new en ar or inan ia inno ation in aiwan Development with Sustainable Finance Connect the dots: Conne t t e oundin spirits, sin erity, di i en e, t ri t, Fostering Robust Governance pruden e, inno ation, rea in t e oa one step at a ti e
Enabling Unlimited Innovation FENC Financial Sustainability Declaration Navigating a Green Future FENC’s Financial Products from Recent Years FENC is t e eadin anu a turer in o a reen E industry e Co pany Creating Inclusive Society Co parin to on entiona inan ia produ ts, w i typi a y re uire a one ont stri es to ui d sustaina e usiness ode to reate ar onious oe isten e wit t e pre aun period, reen and sustaina e inan ia produ ts re uire an additiona to ont s y Cultivating Compassionate en iron ent rou reen in est ent, we u y de e op t e Co pany s sustaina i ity issuin an array o sustaina e inan ia produ ts, it is FENC s ope to esta is re eren es t rou Bonds de e op ent strate y and raise apita to onne t wit FENC s sustaina i ity on rete a tions to attra t ore anu a turers in t e pri ate se tor to do t e sa e Advocating Balanced de e op ent oa s, reatin osed oop ir u ation o undin sour e and apita e Coexistence a e e o e an inno ati e en ar enterprise or sustaina i ity inan in in aiwan, Sustainable finance, an essential element in elevating global sustainability! (Chinese) Appendix ontinuin to reate win win or t e o ern ent, orporations and in estors 2018 Green Bond Government Corporate Investors January 8th First Among Private Sectors in Taiwan NT$ 3 billion Support governmental Offer innovative Fulfill green and implementation on year reen ond, prin ipa paid a productsfor sustainable philosophy green and sustainable at aturity wit oupon rate investors financing channels Content 2020 Far Eastern New Century Corporation 2020 Sustainability Report | Content Sustainability-Linked Loan and Commercial Paper Guarantee at Floating Rate st 2 bout is Report September 21 N i ion year sustaina i ity in ed oan and o er ia paper uarantee at oatin rate ustaina i ity in ed oan and o er ia paper essa e ro t e C air an First in Asia uarantee is in ed to FENC s sustaina i ity per or an e to u i FENC s E ision Sustainability Strate y lueprint FENC s Contribution to N S s Feature FENC s irst sustaina i ity in ed oan o it ent is in ed to sustaina i ity per or an e tar ets to uarantee and issue o er ia papers e NT$ ar in under t e re e ant oan a ree ent ay e redu ed w en t e orrower satis ies a pre deter ined sustaina i ity per or an e tar et Identification of Stakeholders and 3 billion is unpre edented inan in inno ation in sia was eatured y u tip e internationa edia a en ies, in udin e osistent, En iron enta Material Topics Finan e, e sset and oo er Boosting Stakeholder Dialogue FENC s inno ati e sustaina e inan in won est ustaina i ity Finan in ro rip e Country wards e d y e sset a a ine Special Report Triple A Country Awards 2020 GTR Best Deals 2021 1. Protect the Nation, Unite against Schedule pri to une, the Pandemic FENC in ited an s wit internationa eadin status in reen inan in to pro ide ediu ter oan proposa s, w i ust e 2. Developing Circular Economy sustaina i ity in ed wit inno ati e stru tura desi n and Sustainable Value epte er st,
3. Promoting Sustainable FENC si ned t e irst sustaina i ity in ed oan o it ent wit o er ia paper uarantee in aiwan and sia Development with Sustainable Finance Fund Utilization e penditures or a ie in t e s ort, id and on ter oa s in en iron enta per or an e tar ets Fostering Robust Governance 2020 Enablin nli ite nno ation Sustainability Bond st December 21 ssuin N i ion year sustaina i ity ond, prin ipa paid a at aturity wit oupon rate y o inin sustaina e inan e wit Na i atin a reen Future First Among Taiwanese Corporations FENC s ustaina i ity trate y ueprint, it is t e ope to oin ands wit t e o ern ent and sta e o ders to reate a irtuous y e or a uture t at Creating Inclusive Society osters ua ity en iron ent or sustaina e de e op ent in aiwan and to a e sea ess onne tion wit t e internationa o unity
Culti atin Co passionate Feature ost internationa issuers o sustaina i ity onds are in t e inan ia , ser i e or o ern enta se tors FENC is a pri ate anu a turer on s NT$ billion e pre aun period ended and issuan e e an wit in two ont s a ter t e re u atory ena t ent 3.8 e in est ent ra ewor is ased on t e N s and e a uate uti i ation o unds is e a uated ased on ustaina i ity ond uide ines Advocating Balanced Coexistence issued y nternationa Capita ar et sso iation ppen i Schedule to er t , aipei E an e E issued aipei E an e perationa ire tions or ustaina i ity onds No e er t , FENC o tains appro a or issuin o er t e ounter sustaina i ity ond e e er st, FENC issued t e irst sustaina i ity ond in aiwan
Fund Utilization reen and so ia in est ents ・ aste redu tion per or an e ro waste re y in and reuse ・ redu tion per or an e ・ reen ui din par e e op s art reen par as a de onstration site or sustaina e de e op ent t at is ui t upon t e oundation o en iron enta sustaina i ity Content Far Eastern New Century Corporation 2020 Sustainability Report | Content 24 About This Report Message from the Chairman Sustainability Strategy Blueprint FENC’s Contribution to UN SDGs “The ‘sustainable and innovative DNA’ runs deep in FENC. We Identification of Stakeholders and are always prepared, leading the market with a pipeline of Material Topics innovative sustainable financial products. This is the culmination Boosting Stakeholder Dialogue of all our efforts. After we celebrated the first 70th anniversary, we get ready for the 140th anniversary, and we will never stop!” Special Report 1. Protect the Nation, Unite against FENC Chief Financial Officer the Pandemic David Wang 2. Developing Circular Economy and Sustainable Value 3. Promoting Sustainable Development with Sustainable Feedback from partners Finance “Corporate DNA is extremely important! Compared to financial performance, non-financial performance often Fostering Robust Governance better demonstrates the strength of corporate DNA. International verifications may reflect environmental and Enabling Unlimited Innovation “COVID-19 contributed to the rise of sustainable finance. social influence, and amplify the detailed attentions paid to Investors and financial institutions are concerned about Navigating a Green Future ESG. EY is fortunate to collaborate with FENC, a resilience and green recovery. They also care about a corporation of exceptional character.” corporation’s ESG performance, strategies and implementation Creating Inclusive Society Ernst & Young Global Limited Accountant towards visions. These concerns can be addressed by including Roger Tseng Cultivating Compassionate green and sustainable factors as part of the financing tools.” Bonds Advocating Balanced Crédit Agricole CIB Executive Director Coexistence Xiao-Ming Hu “FENC supports the governmental policies on sustainable development. Appendix Its sustainability bond, which is a first in Taiwan, was highly sought-after among investors. This is a testament to FENC’s sustainable management. CTBC Bank is honored to serve as the bond underwriter, “This innovative design is a milestone that is critical for FENC offering investors innovative and diversified products with FENC. This and Crédit Agricole CIB in their implementation of green and collaboration will continue into the future as a demonstration of our sustainable finance in Asia. This financing approach is widely belief in corporate social responsibility as well as sustainable acclaimed among industry peers and the press. The Asset magazine management. We will also continue to be the force that charters the path named it ‘the best sustainability financing in Taiwan’ in 2020” to sustainable development in Taiwan.” CTBC Bank Executive Vice President Crédit Agricole CIB Director Matthew Liaw Chien-Lin Lu