FENC Issues the Latest Sustainability Report

Empowering Sustainability through Technology, Smartly Shaping a New Blueprint for Green and Inclusive Growth

FENC has published its thirteenth Sustainability Report (SR), taking innovation as its cornerstone to continuously deepen AI empowerment and low-carbon transition, enhance smart operations and corporate competitiveness, and strategically plan for environmental sustainability with pioneering mindsets to fortify its circular economy capabilities. As a long-standing commitment, FENC has deeply integrated sustainability into its core business practices, comprehensively advancing ESG implementation across corporate governance, environmental management, talent cultivation, and social engagement. By collaborating with stakeholders, FENC nurtures green resilience amid shifting landscapes and challenges, co-creating long-term corporate value.

Sustainability Excellence Earns Global Recognition, Reinforcing Industry Leadership

FENC advances sustainability initiatives and elevates overall performance, with its deep ESG management achievements widely recognized by authoritative domestic and international organizations. In terms of sustainable governance, the Company was selected as a constituent of the Dow Jones Best-in-Class Emerging Markets Index (DJBIC Emerging Markets) for two consecutive years; was continuously included in the MSCI Selection Indexes and FTSE4Good Emerging Index; and was recognized by the Sustainalytics ESG Risk Rating, underscoring strong international capital market endorsement of its sustainable competitiveness. In climate action, FENC was once again included in the CDP Climate Change "A List" in 2025, ranking among the top 4% of companies globally and marking its second consecutive year among global sustainability leaders. FENC's decarbonization performance also earned the Climate Leadership Award at the 2025 Taiwan Corporate Sustainability Awards (TCSA). In information disclosure, FENC continues to refine transparency and reporting quality, securing top honors with the TCSA Sustainability Reporting Platinum Award and the Global Corporate Sustainability Award (GCSA) "Sustainability Reporting" Gold Class. The 2025 Sustainability Report took the lead in adhering to the IFRS S2 framework for climate-related disclosures, presenting the financial impacts of climate-related risks and opportunities on operational strategies, financial performance, and cash flows; furthermore, SASB chemical industry water management metrics obtained third-party verification, reinforcing credibility and disclosure quality as FENC steadily progresses toward becoming a global benchmark enterprise.

Three Special Reports Highlight Sustainability Progress and Responses to Key Issues

The 2025 Sustainability Report presented major achievements and key issues through three Special Reports. "Waste Reduction x Green Expansion x Closed-loop Circularity: Reshaping the Sustainable Lifestyle" focused on the Company's role as a global leader in the PET bottle recycling industry. Through vertical integration and cross-sector technical partnerships, FENC used green raw material development as its vanguard, green product innovation and rPET capacity expansion as its core, and joined forces with governments and value-chain partners to construct a closed-loop sustainable lifestyle, continuously expanding its circular economy influence. "Green Manufacturing in Action: Low-carbon Transition at FENC" highlighted progress toward net-zero emissions. In 2025, greenhouse gas (GHG) emissions decreased by 40%, reaching near-term carbon reduction targets ahead of schedule, while accelerating green transition via five major low-carbon transition strategies and concrete decarbonization actions. In response to the gas explosion at Hsinpu Chemical Fiber Plant in February 2025, FENC upheld principles of transparency and accountability through a dedicated feature: "Response and Prevention Mechanism in the Wake of the Gas Explosion Incident at Hsinpu Chemical Fiber Plant". This report thoroughly reviewed the response, corrective measures, and follow-up enhancements, turning reflection into action to elevate process safety with the highest standards and strengthen prevention mechanisms toward the goal of zero occupational incidents.

Strengthening Governance and Operational Resilience, Driving AI Innovation and Sustainable Finance

FENC earned the top 5% highest rating in the 12th Corporate Governance Evaluation and was selected for the "2025 Taiwan FINI 100" as the sole representative from its industry. This recognition reflected strong international institutional investor confidence in the Company's market capitalization resilience, business fundamentals, and sustainable governance. In operational governance, FENC embraced "AI empowerment" by establishing project teams, independently developing smart AI management platforms, and broadly applying AI across production, business operations, and management to effectively enhance operational efficiency and quality. Furthermore, FENC actively expanded sustainable finance innovation into the money market, leading subsidiaries to issue the world's first "Sustainable Commercial Paper," utilizing financial innovation to power low-carbon manufacturing and social inclusion. As of the end of 2025, FENC had issued 51 sustainable financial products, raising over NT$90.2 billion fully allocated to sustainability projects and earning numerous domestic and international financial awards.

Accelerating Green Product Innovation and Low-Carbon Manufacturing, Advancing Natural Capital Management

Facing global climate change challenges and transformation opportunities, FENC leveraged its core competencies to drive green product innovation, integrating low-carbon technologies, green raw materials, and circular economy strategies into product development to create globally competitive sustainable materials that earned strong recognition from international brands. Its outstanding R&D team accumulated over 900 patent approvals, proving robust innovation strength. In 2025, green product revenues accounted for over 40% of Production Business revenues, reaching NT$50.6 billion to record five consecutive years of growth and an all-time high. In environmental management, FENC optimized manufacturing processes, enhanced resource efficiency, prevented natural resource depletion, and reduced impact on biodiversity. In 2025, FENC implemented 71 energy and emission reduction projects, averting 23,761 tCO2e. Renewable electricity consumption reached 260 GWh, accounting for 18% of total electricity consumption, while the waste reuse and recycling rate reached 82%. In addition, FENC implemented natural capital management and was officially recognized as a TNFD Adopter in 2026, becoming the first enterprise in Taiwan's chemical sector to join the list.

Advancing Talent Development and Workplace Inclusion, Strengthening Sustainable Supply Chains and Social Impact

With a people-centered approach, FENC built a diverse and inclusive workplace. Average regular salaries at Taiwan FENC sites are 50% higher than the market average, the number of female supervisors in Taiwan grew by 28% over the past five years, and the global employee satisfaction survey achieved 100% coverage with a 94% satisfaction rate. In response to the rapid development of AI, FENC systematically cultivated digital talent through its "AI Academy" and hosted AI Hackathons to accelerate generative AI implementation. Outstanding human resources management achievements earned two Golds and one Silver at the Brandon Hall Group™ HCM Excellence Awards, alongside winning the HR Asia Best Companies to Work for in Asia Award for the fifth consecutive year. In supply chain management, 100% of critical suppliers completed supplier ESG surveys, supported by regular evaluations and on-site audits to ensure that suppliers' sustainability practices align with the corporate sustainability strategy. Driven by the ethos of giving back to society, FENC devoted NT$460 million to social engagement in nearly four years. Leveraging core strengths, as of the end of January 2026, FENC hosted 173 free campus environmental education classes, planting the seeds of circularity and reaching 9,958 teachers and students. Vietnam sites collaborated with local AEON Malls for four consecutive years to hold Environmental Week promoting recycling concepts and rPET product value. The Far Eastern Memorial Foundation has donated NT$160 million over the past four years to sponsoring arts and culture, while the Far Eastern Y. Z. Hsu Science and Technology Memorial Foundation has long supported academic research through the "Y. Z. Hsu Scientific Award," awarding a cumulative total of NT$220 million in prize money.

Leveraging Smart Technologies to Build a New-Generation Model for Low-Carbon Operations and Ecological Coexistence

Built upon the foundation of sustainability and driven by smart technology, Taipei Far Eastern Telecom Park (Tpark), a park under FENC's Land Development Business, comprehensively elevates its smart and low-carbon management efficiency through three in-house digital platforms: BIM (Building Information Modeling), DPMS (Digital Property Management System), and T-Carbon Management System. Furthermore, Tpark became the first park in Asia to obtain dual Platinum certifications from WiredScore and SmartScore, placing it among the top 1% of smart buildings globally. Incorporating low-impact development and nature conservation concepts, the park has enhanced biodiversity through Spiranthes sinensis habitat restoration, a butterfly habitat enclosure, and digitized plant management, while working with tenants and partners from industry, government, and academia to build a next-generation sustainable park featuring smart technologies, low-carbon operations, and ecological coexistence.

FENC continues to leverage its strengths in green manufacturing and innovation, accelerating innovative AI applications and the low-carbon transition while actively building a diverse and inclusive workplace and strengthening sustainable supply chains. By continuously advancing its performance across environmental, social, and governance dimensions, FENC fulfills its sustainability commitments through tangible actions, laying a solid foundation for long-term growth through sound and steady operations and co-creating sustainable value with all stakeholders.

Download the 2025 FENC Sustainability Report at https://esg.fenc.com/report.aspx?lang=en