Message from the Chairman

2019 has been a tumultuous year in terms of international developments. The ongoing trade war between China and the U.S., coupled with demonstrations in different regions have resulted in an extended slump in global economy. Unfortunately, Everlight Chemical hasn’t been spared from the repercussions of such volatile times as we were not able to meet our profit target due to less-than-ideal sales performance. Nevertheless, we are ever grateful to the blessings of God that enabled us to remain steadfast in our stride despite such times of uncertainty as we continued to strengthen the company’s core capabilities, thereby establishing a sound basis for our sustainable development.

Everlight Chemical / Chairman

Chairman of Everlight Chemical – James Chen

This report marks our third attempt at adhering to the core option standards of Global Reporting Initiative(GRI Standard) as we continued to commission the British Standards Institute (BSI) to conduct 3rd-party verification in accordance with the AA1000 Assurance Standard (2008) and it’s 2018 Attachment. The scope of this report will still only cover Everlight Chemical’s HQ in Taipei City and the four plants that we operate in Dayuan and Guanyin Districts of Taoyuan City.

In Taiwan, everyone has gradually become accustomed to and learned to appreciate the significance that the abbreviation “ESG” (i.e. Environment, Social and Governance) stands for. I will briefly touch on a few key points that pertain to the three aspects of ESG in order to inform the readers as to the efforts and commitments that Everlight Chemical has put forth with regards to issues of sustainability and international trends.

With regards to the development of sustainable environment
The Company has attained significant results in water conservation, energy conservation and carbon reduction. For water resource management, our total water consumption for 2019 was 12% less compared to that of 2018; our “Return Water/Water Conserved” for 2019 came to 4.17 million liters, translating to 39% in terms of water conservation performance.
With regards to energy management, our energy consumption for 2019 turned out to be 6% less compared to 2018 as we saved a total of 1,486 MW (equivalent to a reduction of carbon emission by approximately 793 tCO2e) of power;the RTO furnace that became operational at our 3rd plant in 2019 is capable of completely trapping and processing all VOCs from our processes. Not only that, we have also continued to develop green chemical solutions. For instance: The Business Unit of Color Chemicals launched the Everzol ERC Solution as an eco-friendly dyeing and finishing solution for customers in 2019. This solution not only dramatically reduce the processing time by more than 40%, it also saves 70%, 67% and 80% of water, power and steam respectively to substantially reduce the entire’ plant’s CO2 emission.

With regards to the maintenance of social welfare
Sharing the fruits of our success and enriching the meaning of life” is Everlight Chemical’s interpretation of what a happy enterprise ought to endeavor. We hope that each and every employee can celebrate this sense of security, belonging and honor that we strive to create. On top of that, the Company has also established relevant human rights policy that are compliant with pertinent international guidelines and standards in 2019. We have also continued to take part in the cause of welfare and charity and apart from sponsoring various community education programs, the Company has also helped schools in the purchase of software/hardware facilities, contributed towards industrial developments and taken part in charity events. We have also held voluntary coastal clean-up activities to protect the environment and ecology of the coastal ecology at Guanyin. Furthermore, our 2nd plant not only continued to help Shulin Village to boost its disaster prevention capabilities but also took part in the “Peach Blossom Spring & Water” initiative by Taoyuan Department of Environmental Protection to adopt the section of Dajue River as the Company’s way of doing its part to protect the beautiful planet of Earth.

With regards to the implementation of corporate governance
In terms of information transparency, the Company began publishing its annual report and full contents of Handbook for General Shareholder’s Meeting in English starting from 2019. In addition, we also completed updating our official website so that it is now available in both Chinese and English. This will enable our shareholders and stakeholders to have easier access to relevant company information. In this report, we have included a special section to disclose our efforts and results in the area of “chemical safety management. In addition to pledging that we will never use raw materials from conflict resources, we will also be working towards the goal of “100% compliance rate with relevant international standards and requirements for all products”.

Everlight Chemical has been actively working towards compliance to the Sustainable Development Goals(SDGs) as outlined by the United Nations and adopted relevant goals as the guideline that determines our priority in continual improvement for environmental issues. Not only that, we have also referred to the TCFD(Task Force on Climate-related Financial Disclosures) Recommendations Report published by the Financial Stability Board (FSB) as the underlying framework for the Company in its assessment of the potential risks and opportunities that climate changes may have on Everlight Chemical so that we can formulate corresponding countermeasures.

Covid-19 became a full-blown pandemic at the beginning of 2020 and it has already caused drastic impacts and repercussions across the globe. Before the Company resumes operation from the Chinese New Year holidays, we had already held two disease-prevention and response meetings and have continued to closely monitor the latest developments for the disease and relevant political and economic situations so that we can respond accordingly. Although the macro environment leaves little room for optimism, we are confident that we will make it through this storm unscathed and keep all potential impacts at minimum.

I hereby offer my sincerest wishes to you all –
Best of health and Godspeed!