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  • NAFCO Achieves ISO 14064-1 Greenhouse Gas Inventory Certification, Fulfilling Its ESG Commitment to Sustainable Carbon Reduction

To actively promote sustainable development and carbon reduction goals, NAFCO successfully obtained ISO 14064-1:2018 Greenhouse Gas Inventory Certification from AFNOR ASIA in June 2024, with a 100% completion rate. This achievement marks a significant milestone in our journey toward sustainable operations and environmental protection.

 

Aligned with the carbon reduction pathway outlined in the Paris Agreement, NAFCO began conducting comprehensive greenhouse gas (GHG) inventories in 2022. We have implemented related carbon reduction initiatives, identifying both direct and indirect GHG emission sources within our operational boundaries. This ensures transparency in disclosing carbon data, meeting the expectations of our customers and other stakeholders, and fulfilling our corporate responsibility to mitigate global warming.

 

Greenhouse Gas Inventory Results Over the Past Three Years

Following third-party verification conducted by AFNOR ASIA, NAFCO has compiled the following GHG emissions data for the years 2021 to 2023:

  • 2021:
    • Scope 1: 140.49 metric tons CO2e
    • Scope 2: 7,510.58 metric tons CO2e (20%)
    • Scope 3: 30,401.59 metric tons CO2e (80%)
    • Total Emissions: 10,691.66 metric tons CO2e
  • 2022:
    • Scope 1: 396.69 metric tons CO2e
    • Scope 2: 8,722.23 metric tons CO2e (76%)
    • Scope 3: 2,793.58 metric tons CO2e (24%)
    • Total Emissions: 11,912.51 metric tons CO2e
  • 2023:
    • Scope 1: 358.01 metric tons CO2e
    • Scope 2: 9,356.01 metric tons CO2e (67.79%)
    • Scope 3: 4,616.58 metric tons CO2e (32.21%)
    • Total Emissions: 14,330.60 metric tons CO2e

 

Achievements in Carbon Intensity Reduction and Future Goals

In 2023, NAFCO successfully reduced the carbon intensity of Scope 1 and Scope 2 emissions to 3.56 metric tons CO2e per million NTD, a 23% decrease compared to 4.63 metric tons CO2e per million NTD in 2022. Building on this success, we completed the implementation of a smart electricity meter monitoring platform in 2024.  This initiative is expected to further reduce carbon intensity by an additional 5–10%, enabling more efficient energy management and carbon optimization.

 

ESG Sustainability Vision, Strategies, and Future Goals

In response to the Paris Agreement’s goal of achieving net-zero emissions by 2050, NAFCO is committed to the following initiatives:

  1. Energy Management and Optimization:
    • Deploy a smart electricity meter monitoring platform to enhance energy efficiency and strengthen power management.
    • Regularly disclose greenhouse gas inventory results to ensure transparency.
  1. Green Energy Deployment:
    • Expand the application of green energy to reduce the environmental impact of product manufacturing.
  1. Carbon Reduction Review:
    • Conduct annual reviews of energy-saving and carbon-reduction achievements to reinforce energy density management and improve operational efficiency.

NAFCO Group will continue to accelerate the implementation of various ESG initiatives, fulfilling its commitment to sustainable operations and contributing to greater corporate influence in global environmental protection.

This announcement serves as a testament to NAFCO’s dedication to sustainability and its accomplishments. We strive to create more value for society while paving the way toward a greener future in collaboration with all stakeholders who care about the environment!

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  • Environment：
  •  Identify environmental considerations to prevent environmental pollution
  • To implement environmental management by identifying the impact that the company’s existing and future activities, products and services may have on the environment through environmental considerations.
  • Greenhouse Gas and Energy Management
  • Practice energy conservation and carbon reduction to protect the planet.
Nafco is mainly engaged in the design, assembly and maintenance of mechanical metalworking products, compared with other production, greenhouse gas emissions are smaller. However, in order to fulfill the responsibility of protecting the earth and respond to global climate change, we have set greenhouse gas inventory plans and reduction targets.
The energy resources we use include electricity and gas. Electricity is used to provide air conditioning, lighting and mechanical operation, etc., and is the main energy use of the company. Therefore, Nafco is committed to the implementation of energy conservation projects, for the management and technical aspects of the implementation, in order to reduce the consumption of energy resources to achieve the mission of environmental protection. Since its inception, it has promoted energy conservation and carbon reduction related matters, including greenhouse gas inventory and verification, the establishment of carbon reduction targets and the implementation of various energy conservation programs. Promote the power monitoring program to identify improvement opportunities through electricity consumption data collection and analysis, so as to improve the efficiency of electricity use.
  • Waste management

  • Reduce the amount at source and properly recycle and reuse

The sources of the company’s business waste are mainly R&D materials, waste products, packaging materials and employee household waste. We reduce the impact on the environment through strict sorting and management mechanisms, and entrust legal and responsible recyclers to dispose of hazardous industrial waste. The principle of waste disposal is mainly recycling, and the parts that cannot be recycled and reused will be destroyed by crushing and other methods, and recycled and reused. Basically, it will not be disposed of in landfills, and some waste will be disposed of by incineration, and in the future, the goal will be to reduce the proportion of incineration and reduce pollution year by year.

 

Waste statistics: In 2021, the weight of hazardous waste was 134.86 tons (35% of the total) and the weight of non-hazardous waste was 252.43 metric tons (65% of the total), with a total weight of 387.29 tons.

 

In 2022, the weight of hazardous waste was 127.32 tons (31%), and the weight of non-hazardous waste was 284.71 tons (69%), with a total weight of 412.03 tons.

In 2023, the weight of hazardous waste was 241.91 tons (45% of the total) and the weight of non-hazardous waste was 293.63 tons (55% of the total), for a total weight of 535.54 tons.

 

The waste output intensity in 2022 was reduced to 0.209 tons per million, equivalent to 0.298 tons in 2021, a decrease of 29.8%. The waste output intensity in 2023 was reduced to 0.196 tons per million, equivalent to 0.209 tons in 2022, and then continued to decline by 6.2%.

  • Water Resource Management
  • Implement water conservation and proper treatment
The company does not use a large amount of water in the process, mainly for the domestic water of employees, so in addition to strengthening the promotion of water conservation for employees, it also introduces water-saving designs. In terms of sewage discharge, each plant has set up an independent sewage treatment plant, and all treatment processes comply with the requirements of environmental protection laws, so there is no impact on the surrounding surface water. In the installation, maintenance and maintenance of the sewage treatment plant, there are special personnel responsible for ensuring that the equipment and processes are kept in the best working condition. Besides, regularly entrust external environmental protection agencies to carry out inspection operations for the quality of the released water. The Government will also conduct irregular sampling and sampling audits in accordance with the laws and regulations.
  • Prevention of Air Pollution
The company’s production operations are mainly assembled, and the volatilization of smoke, vapors and organic solvents generated in the process is the focus of prevention and control. Formulate air control management measures to ensure that the exhaust gas generated by the activity is discharged after being treated by equipment or collected directly by windmills, and although the emission is extremely small, the concentration of harmful substances in the air is still regularly detected, and the test results are in line with the emission standards of local national laws and regulations. In addition, green processes are being further promoted, such as the replacement of original flammable organic solvents with low-pollution, environmentally friendly fluxes or water-based fluxes.
  • Environmental Protection

Upholding the belief that there is only one Earth, we actively improve our performance in climate change response, pollution prevention and control, energy and resource conservation, waste reduction, OHS management, and fire prevention to lower the overall environmental and OHS risk. We have also passed the certification for the ISO 14001:2015 Environmental Management System (EMS) to enforce environmental policy featuring respect and protection for Earth through the standardized routine management so as to fulfill our corporate social responsibility (CSR).

We began to actively engage in environmental protection and energy conservation, environmental education promotion, environmental protection and energy conservation culture building, and the implementation of measures related to environmental protection and energy conservation in 2019. Through continual process improvement and establishment and implementation of energy conservation policies, we aim to lower pollution, reduce energy consumption, and achieve eco-friendliness.

  • Carbon Emission Reduction

To enhance the efficiency of resources, we invest in energy conservation activities such as using the photovoltaic system, LED energy-saving bulbs, green power and energy, and inverter devices; replace the IE3 motors; and implement aircon automatic control. We have also many renewable energy certificates (RECs) to maximize the efficiency of energy and resources to effectively reduce carbon emissions. In 2023, Nafco recycled 221,094 kWh of solar energy, and obtained 63 renewable energy certificates from the Ministry of Economic Affairs. The real-time power monitor and management platform had been built in 2023 for the purpose of effectively improving the use of electric energy.

To cherish Earth’s resources and reduce environmental impacts, apart from implementing paperless operations (operations are done electronically), we also encourage employees to make photocopies on both sides of the paper and use recycled bin liners.

  • Water Conservation

To enforce environmental protection and value Earth’s resources, we have promoted the water conservation policy and taken related measures and invested in the wastewater treatment system and rainwater harvesting system to ensure water reclamation and reuse to practice CSR and protect Earth. In 2023, rainwater harvesting was 652MT.

  • Energy and Environmental Management System
Management SystemCertification UnitPeriod
ISO14001: 2015 EMSUniversal Certification Service Co., Ltd.2021/05~2024/05
  • Data on Energy Consumption, Water Consumption, and Carbon Emissions
CategoryTotal/ DensityUnit202120222023
GHGTotal MTCO2e
(Scope 1+Scope 2)		MTCO2e   7,651.07   9,118.92   9,714.02
GHGMT CO2e density
(Scope 1+Scope 2)		MT CO2e/ per Million of revenue         5.90         4.63         3.56
ElectricityElectricity densityKWh/ per Million of revenue      11,516       8,954       7,543
Green EnergySolar EnergyKWh    170,835    148,739    221,094
Tap WaterWater densityMT/ per Million of revenue            62            49            48
WasteWaste densityKg/ per Million of revenue          298          209          196
ReuseRainwater recyclingMT          896          899          652