Everlight pays close attention to the global climate change trends and international directions, and promises to refer to the “Climate-Related Financial Disclosure Proposal” published by the Task Force on Climate-Related Financial Disclosures (TCFD) in the company’s important report of the company to disclose information on climate change, and the risks and opportunities it brings. The company is committed to the adaptation and mitigation of greenhouse gases, and will continue to analyze and control internal energy consumption to achieve the goal of actively reducing greenhouse gas emissions.
Environmental protection and climate change are important issues that require the collaboration of people all around the world. As domestic environmental regulations become tighter, the increases in costs and restrictions of consuming energy impact company operations. In order to allow the company to properly manage mechanisms related to energy consumption, Everlight continues to follow RBA and ISO-14001, and has converted to the latest version of ISO 14001:2015. The company complies with the ISO 14001 internal management review procedures to identify environmental regulations each year, and collect information after amendments or new environmental protection laws have been established for analysis. The provisions relevant to the company will be included in the Environmental Safety and Health Committee meeting, and the conclusions reported to management personnel of all levels during the annual management review meeting. The company's Tongluo plant obtained the ISO 50001 in 2018 to achieve the goal of sustainable energy use, avoid excessive consumption and use of energy, and continues to improve its environmental performance for sustainable operations.
All Everlight's factory plants (Shulin, Yuanli, Tongluo, Suzhou and Zhongshan) are located in industrial parks. They all meet the conditions of environmental impact assessment and are not in ecological reserves or protected habitats. The Company's activities, products and services present no major impacts to biodiversity, ecological reserves or habitats. The surrounding environment also has no species listed in the IUCN Red List or the list of endangered and protected species. Since the establishment of its plants, Everlight has never received any complaints concerning impact on the ecological area or material negative impact on the local community. In 2018, no leakage or violation of environmental regulations was found in all plants.
Everlight invests in resources of environmental protection equipment, pollution disposition expenses, environmental protection management system and environmental protection education trainings for related personnel. The company has also made and environmental expenditure of NTD $15.104 million in order to reach the goals of abiding by environmental protection regulations, reducing environmental pollutions, and sustainable environmental management.
Energy and Emissions Management
Electricity, gasoline, diesel and natural gas are the types of energy used by Everlight's factory plants. Every plant is committed to improving the energy efficiency of production and continues to promote energy conservation and reduction of carbon emissions. Based on the goals of corporate social responsibility and sustainability of green manufacturing, every factory plant passes ISO 14001 certification. The establishment of our management policy and measures provide a framework for the Company to optimize its energy efficiency without affecting its current operations. The framework is closely linked to the corporate strategy and objectives, combined with PDCA methodology, to perform continuous improvement of the Company's energy use. The reduction in energy costs also has led to the reduction of greenhouse gas emissions, which in turn achieves sustainable management and environmental-friendliness.
Everlight re-examined its use of electricity and other energy sources, and made a series of improvement measures. In addition to the existing energy-conservation equipment for power management such as chiller unit air conditioners, LED lighting fixtures, etc., adopting the zonal management of the air conditioning and lighting settings of the public space, and also implementing improvement measures for the air conditioning system by initially setting the temperature during daytime at a higher setting has already achieved energy conservation.
In terms of managing of greenhouse gas emissions, the source of greenhouse gas emissions from the location controlling Everlight’s operations primarily comes from the use of gasoline of company vehicles and electricity. Everlight divides greenhouse gas emissions into direct (Scope 1) and indirect (Scope 2) emissions. The direct emissions include process energy such as gasoline, diesel and natural gas. The indirect emissions are mainly purchased electricity. In this report, we do not include Scope 3 and fugitive emissions. We only consider the general energy emissions and calculate the emissions of Scope 1 and 2 based on the 6.0.3 version of greenhouse gas emission factor management table provided by the Environmental Protection Administration. The strategy for reducing greenhouse gas emissions is based on office electricity conservation measures. In 2018, Everlight's carbon emissions totaled approximately 110,344 metric tons of CO2e. The facility Shulin is an office building so it is not taken into consideration. The emission intensity of each plant has increased slightly. We will continue to make efforts in energy saving and carbon reduction.
Everlight follows ISO 14001 environmental management system and implements the operation regulations for air pollution. The company also conducts maintenance based on the features of equipment. Competent unit is held accountable for regular inspections. In case control or emission error occurs, the company will implement emergency responding disposition, clarify the cause rapidly and implement improvement control in order to reduce the pollution caused by the production activities. The manufacturing processes used in the facilities in Taiwan do not include substances harmful to the ozone layer or ODS. As of 2017, the Suzhou facility had not completed its ODS identification. We will start establishing identification procedures in 2018. In 2018, the air pollutant emissions in all the facilities were lower than the regulatory standards, as shown in the table below.
Energy Saving and Carbon Reduction Measures
Everlight has been promoting energy saving and carbon reduction. Based on the goal of CSR and green production and sustainable operation, all plants received ISO 14001 environmental management system certification. The main purpose is to provide the company with a structure of necessary procedure through the establishment of management guidelines and methods, which allows the company to comply with and reach the best energy usage efficiency without affecting the current operation. Everlight combines the operation strategy with the goal along with Plan-Do-Check-Action (PDCA) mechanism to consistently improve energy utilization. The company may further achieve the goal of sustainable operation and eco-friendly through reducing energy costs and GHG emission.
In 2018, we saved a total of 1,339,362 kWh of energy, reduced our carbon emissions by about 638,433 metric tons and a total cost savings of about NTD3,324,122. We will continue to promote energy-saving and carbon reduction measure. The results and performance of every facility in 2018 are shown in the table below.
Water Resources Application
In response to the extreme climate changes, the development and distribution of water resources has been a critical issue for countries around the world. Thus, water resources management, water saving, and emergency response for water shortage become a critical part in the risk management for climate change and disaster adaption for corporations. In view of water resources application, Everlight recycles and reuses the water in the production process in manufacturing plants, which allows the water resources may be properly used efficiently. The company also conducts regular internal inspection, review and evaluation, and then it will fix and adjust current facilities and equipment based on the evaluation result. The company will then reevaluate the improvement in order to achieve the ultimate goal of saving water resources. In 2018, the total water consumption was about 994,491 metric tons, an increase of 24.9% over 2017. The main reason was the addition of a dormitory, garden, pond etc. to the Tongluo facility in 2018, thus increasing the total water consumption.
In addition, Everlight also conducts promotion on saving water to employees. The water saving efficiency was improved by the change of water consumption behaviors. The amount of water intake for all plants did not cause material impact on local water sources. The water intake sources and the total water consumption/waste water amount of all plants are shown in the following table:
As for the monitoring of water resources, required tests (wastewater temperature, pH value, SS, BOD, and COD) are carried out by accredited institutions by commission of the company on an annual basis to ensure that the discharged water meets relevant effluent standards and prevent impacts on the environmental ecology. The monitoring value of water emission for all plants of Everlight in 2018 was within the legitimate emission standards.
Water Saving Measures and Water Recycle Rate
In response to water shortage and climate changes, Everlight continues to promote water saving measures with every effort. In addition to improving facilities and equipment, the company also encourages employees to change the water consumption behaviors to improve water saving efficiency. Our water saving measures in 2018 were estimated to save about a total of 1,126 metric tons in water resources.
For the pursuit of sustainable operation, the company improves production process and recycle resources to reduce costs and pollution in order to achieve the win-win goal of reducing environmental pollution and effective utilization of resources. Plants focus on the environmental protection awareness. The main principle of supply chain management is to recycle or re-use resources that may be recycled or re-used, and wastes are disposed based on their natures. Vendors handling waste disposal are qualified vendors, and the company conducts periodic audits on vendors handling waste disposal in order to enhance monitoring and management on vendors. In response to the garbage cleaning method, the application of a garbage cleaning plan began in 2018. In 2018, the total waste amount for all plants of Everlight was 1,350 metric tons, a decrease of 27.6% compared to 2017.
In terms of paper management, the company continued to strengthen its education on reducing unnecessary printing. If a document must be printed, it should be printed on both sides to reduce the amount of paper used by the company. In addition, each multi-function printer has had a card ID scanner added to it since the beginning of 2017. Colleagues must certify their identity using their ID cards to obtain reports or materials. Not only does it reduce the use of paper, it also helps to remind employees of the importance of conserving paper. The company will continue to announce reminders to colleagues to save, and fully implement requirements of colleagues to print double-sided documents and re-use single-sided recycled paper.