Formosa Plastics Group Creates Green Value in 2022 with Green Procurements of NT $760 Million

Formosa Plastics Group (FPG) has been actively implementing ESG (environmen-tal, social, and corporate governance) in the spirit of sustainable development. The Group has established comprehensive management and review systems towards "green procurement" and encourages each department to prioritize the purchase of certified green materials and taking action to reduce carbon on Earth.

Review of FPG's (includes Formosa Plastics, Nan Ya Plastics, Formosa Petrochemi-cal, Nanya Technology, Nan Ya PCB, Formosa Sumco Technology, Formosa Taffe-ta, Formosa Advanced Technologies, and other companies) saw green procurement reach NT $600 million in 2021. This year (2022), the amount of green procurement reached NT $760 million, growing by 26.7%; this reduced carbon emissions by 3,015 tons or the equivalent of carbon absorbed annually by 7.8 Da'an Forest Parks. Clearly, the results have been exceptional.

Building a Healthy Management System for Enterprise-wide Efforts to De-crease Greenhouse Gas Emissions

FPG has established green procurement guidelines that place considerations towards energy conservation, carbon emissions, operating performance, water conservation, service life cycle, and recycling when procuring materials. FPG also dedicates workers to conduct strict safeguards in the selection of green materials by choosing those announced by governing authorities to have received domestic or internation-al certifications in "eco-friendly", "energy and water conservation", and "green ma-terials" (such as: LED lights, hybrid company vehicles, toner cartridges, water con-serving toilets, and air conditioners) to achieve a reduction of greenhouse gases.

Encouraging Green Materials by Suppliers to Boost Performance of Green Procurement

In response to public and private environmental protection and future regulator trends, FPG also encourages suppliers to develop both domestic and international "green certification or manufacturing" materials in addition to establishing compre-hensive management systems. The Group's policy of "encouraging departments to prioritize the evaluation and purchase of green materials even if they are costlier" prioritizes materials with lower environmental impact. This directly promotes sup-plier willingness to offer green materials and converts into boosted performance of our enterprise green procurement.

Furthermore, FPG has actively built a sustainable supply chain. This year (10/27), we partnered with Yunlin County Government in the joint hosting of a "Circular Economy Forum" that invited both domestic and foreign experts, scholars, and suppliers to discuss issues related to innovative, sustainable thinking and resource recycling. The event focused on transforming the existing linear economy of "ex-tract, manufacture, use, and discard" to a circular economy model based in "re-source sustainability".

FPG has taken specific actions towards "green procurement" to include the princi-ples of a green sharing economy into the Group's development policy. We are work-ing hard with suppliers towards the objective of 2050 net zero and maximizing green value through sustainable operations and our love for the Earth.