Far Eastern New Century Corporation

Far Eastern New Century Sustainability Report

Project Commitment to Sustainable Development Goals (SDGs)

SUSTAINABILITY OBJECTIVES

FENC voluntarily published its first Corporate Social Responsibility Report in July 2013. The 9th edition, which is newly titled “FENC Sustainability Report,” was published in June 2022. Inventing New Century, the title of the FENC Sustainability Report underscores “innovation” as the cornerstone which propels corporate sustainability. Global warming has fueled extreme weather patterns. As a member of the global village, FENC pledges to devote all efforts and resources it could to concrete actions. The company bravely assumes its corporate social responsibilities, standing alongside the public amid the challenges.

BENCHMARK AND STRATEGIES

FENC is committed to the balanced and sustainable development of environmental, social, and corporate governance (ESG) for the long haul. The company values feedback from all stakeholders and responds with active engagement. Equipped with a comprehensive framework for sustainable governance and high standards for management systems, the company is able to maintain sound sustainability performance and competitive edges amid the fast-changing environment. Under the rapid changes in the world, FENC can grasp new opportunities to create new models, take proper actions in pursuit of sustainability, creating win-wins and prosperity for the corporation, society, and environment. FENC takes into account the expectations of the general public for the company while pursuing corporate profits, paying close attention, and adjusting corporate policies accordingly as issues emerge. FENC established the Sustainable Development Principles and Sustainability Strategy Blueprint to build cohesion within the company as it strives toward sustainability. FENC established the “Sustainability Committee” in 2020. The Sustainability Committee actively fulfills the responsibilities granted by the Board of Directors. The promotion and execution of internal ESG projects are under the responsibility of the “Corporate Sustainability Implementation Committee.” The committee consists of 220 members, including Presidents and Chief Operating Officers of Petrochemical, Polyester, and Textile Businesses, along with Chief Operating Officers and managers at FENC’s production sites worldwide. The efforts are coordinated by the Sustainability Task Force at the Corporate Staff Office.

STAKEHOLDERS’ ENGAGEMENT

FENC develops the framework for material topic analysis based on the standards of stakeholder engagement in Global Reporting Initiative (GRI) standards and AA1000 Assurance Standard, as well as the principles of determination, analysis, and verifiability. The Corporate Sustainability Implementation Committee identifies the stakeholders and material topics each year and administers surveys to assess external inputs every 3 to 4 years. The stakeholders and material topics require executive approval to keep the course of sustainable development and Sustainability Report in line with the expectations of internal and external stakeholders. In light of the escalating climate threats, the international community is stepping up measures to control and manage GHG emissions with net-zero targets and regulatory responses. FENC is also highly concerned about the impacts of climate issues on the stakeholders, corporate operation, economy, environment, and society. After executive reviews are conducted, the material topic, responses to climate change, is prioritized in 2021.

DISCLOSURE AND CREDIBILITY

The reporting is in compliance with the criteria under the Comprehensive category of the Global Reporting Initiative (GRI) standards and has been assessed by third-party verification as Type I AA1000 AS v3 Assurance Standard moderate level. The reporting also referenced Task Force on Climate-related Financial Disclosures (TCFD), Sustainability Accounting Standards Board (SASB) on Chemicals, Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies, and ISO 26000 Guidance on Social Responsibility. FENC is a conglomerate that spans production, land development, and investment businesses. The report discloses 96% of the revenues on the 2021 consolidated statement. FENC has received accolades from a wide range of organizations. The company is a constituent of multiple sustainability indexes and ratings, including CDP, MSCI ESG Leaders Indexes, FTSE4Good Emerging Index, Taiwan Sustainability Index, and TWSE Corporate Governance 100 Index. The company also won multiple awards from TCSA, GCSA, CommonWealth Magazine’s Excellence in Corporate Social Responsibility, and Global Views Corporate Social Responsibility Awards. Currently ranking among the top 5% in Corporate Governance Evaluation, FENC has also won Best Companies to Work for in Asia by HR Asia and the Sports Enterprise Certification in 2021.

Far Eastern New Century Corporation (FENC) was established in Taiwan in 1949 with the integrated production and operation advantages of petrochemical, polyester, fiber, and textile. FENC is the global leading supplier of polyester and recycled polyester products and the appointed partner of international brands.

www.fenc.com