In recent years, climate issues have become a prominent international concern. From governments to private enterprises, all sectors are striving for the goal of net zero by 2050. Global consumer electronics brands have gradually proposed to achieve 100% carbon neutral supply chain by 2030. Although we are not a direct supplier to the brand, we still actively map out our carbon reduction goals so as to jointly contribute in cooling down the planet. Since 2022, we have implemented the ISO 14064- 1:2018 GHG inventory system and obtained a third-party verification statement.
In response to the national energy saving goal, we continue to invest in various energy saving measures. In 2021, the ISO 50001 Energy Management System Platform was established at our Kaohsiung factory in Taiwan. Through the e-energy management platform, the Company can implement comprehensive energy inventory and set various performance indicators as well as the best power consumption strategy for equipment to ensure the optimal use of energy, thereby achieving the targets of carbon emission management.
On December 31, 2020, the Bureau of Energy, Ministry of Economic Affairs announced that major electricity users with contracted capacity of 5,000 kW or above are required to install renewable energy power generation equipment for 10% of their average chartered capacity in the previous year within five years, purchase renewable energy and certificates, or install energy storage facility in order to perform their obligations pursuant to the “Renewable Energy Development Act.” The contracted capacity of our factories has yet to meet the threshold of major electricity users. Although we are not subject to the aforementioned regulations at this stage, we took actions in response to the government policy. We established Taiflex Green Power in March 2021 and installed PV facilities of 375.9 kW (generating 450,752 kWh of electricity per year) at Taiflex 2 in 2022. At the same time, we bought back the installed capacity of 271.2kW (generated 349,544 kWh of electricity per year) previously leased to other companies at Taiflex 5.
To achieve net-zero emissions, the Company has set medium- to long-term targets for installed renewable electricity capacity. Furthermore, it is prioritizing the use of green building principles in the Thailand factory and planning to sign a ten-year power purchase agreement for green electricity certificates, making carbon reduction a core competitive advantage for Taiflex. Additionally, following evaluation by the Sustainable Development Committee and review by the Board of Directors, the Company's subsidiary, Taiflex Green Power Co., Ltd., will subsequently expand the construction of renewable energy installations and will be specifically responsible for operating the Company's green electricity facilities.
