Sustainable practice

ESG: Climate Change Action

Upgrading Smart Manufacturing Influence for 3R PLUS Net-Zero Total Circulation

Taiwan's paper industry uses plant fiber and recovered paper as raw materials. It also engages with technology innovation to expand the scope of waste to resources to provide the market with diversified options for green consumption and create the recycling value of the circular economy, becoming the oldest and most typical resource circulation industry and the industry indispensable to achieving the carbon reduction and carbon neutrality goals of the macro environment in Taiwan.

1. Rebuilding secondary forest through promoting total resource circulation and sustainable smart papermaking

In recent years, we have been actively integrating the total circulation of three major resources: products, energy, and water through the low-carbon S.M.A.R.T paper strategies: Subtraction-reducing resource consumption use, Materials-turning waste to energy, AI-smart production-sales, Recycling-reusing recovered paper, and Technologies-advanced processes to transform traditional factories into eco-friendlier smart and recycling plants. With an annual conversion rate of up to 92.5 %, we recycle up to 40% of recovered paper weighing 1.6 million MT into eco-friendly products. Additionally, we replace fossil fuels with large amounts of solid recovered fuel (SRF) produced from the manufacturing process to reduce carbon of nearly 9.1 million MT for Taiwan each year, creating the largest scale of waste recycling in Taiwan. Through resource circulation and recycling, we provide green products for the market to indirectly mitigate the habitat damage from logging to retain about 5,233 Daan Forest Parks so as to build secondary forest and maintain biodiversity for Earth. Encouraging "reduce carbon from a piece of toilet tissue," we became Taiwan's only enterprise awarded the Carbon Footprint Label for six household paper products to help consumers easily practice carbon reduction in daily life.

2. Accomplishing carbon neutrality through four scientific carbon reduction roadmaps for agricultural and forest resource circulation

Since 2019, CLC has been implementing the "Smart Paper 4.0" lowcarbon transformation to achieve a scalable green impact through intelligent production and sales. Our goal is to shift papermaking from "near-zero" to "net-zero" by implementing energysaving, carbon reduction, and waste reduction measures. With a comprehensive strategic blueprint focusing on four scientific carbon reduction pathways–energy efficiency, renewable energy, circular lowcarbon fuels, and innovative carbon-negative technologies–we are driving deep and sustainable innovation. In 2022, we actively invested in sustainable circular economy practices, collaborating with industry, government, academia, and research institutions. Through initiatives such as plant fiber regeneration, high-value applications of biobased materials, and increased use of biofuels, we are constructing a 3R PLUS circular blueprint and contributing to the nation's goal of achieving carbon neutrality by 2050.

ESG: Sustainable Products and Development

CLC Binh Duong Mill Becoming Paper Leader in Vietnam First Taiwan-invested Paper Mill Ranked CSI TOP 100

Focusing on innovation, circulation, and green energy and setting the new low-carbon & green energy paper company in Asia as the goal, we actively engage in global expansion and expanding sustainable production capacity to deploy competitive strengths in sustainable and low-carbon papermaking.

1. Expanding production lines for sustainable packaging materials! Commercial operation of CLC Binh Duong Mill Phase II, Mass production of first box plant in northern Vietnam in 2023

According to the statistics of International Corrugated Case Association (ICCA), the global corrugated case consumption in 2022 exceeded 274 billion m2, with an annual growth of 0.6%. With an annual GDP growth expected at 8%, the highest in Southeast Asia, Vietnam's paper box consumption exceeded 2.58 billion m2, with an annual growth of 14.4%. To capture the green package business opportunities, we make continuous operations deployment at home and abroad with circulation and recycling as the strategic goals to expand the scale of recovered paper recycling. Alongside the industrial paper line with an annual capacity of 400,000MT of CLC Binh Duong Mill Phase II will start the commissioning in 2023H1, which its annual capacity of CLC's paper and corrugated board will be boosted to 2.502 million MT. Following the upcoming start of the mass production of CLC Ben Cat Box Plant, and Bac Giang Box Plant, our first box plant in northern Vietnam will start the commissioning in 2023H1, with the box capacity will increasing by 264 million m2 to a total capacity of 2.051 billion m2. And the third industrial paper line scheduled and the deployment of a one-million-MT integrated papermaker base in Vietnam will be completed.

2. TOP 100 Sustainable Businesses 2022 (CSI 2022): CLC scales for good to contribute to local industry resources

Since its establishment in 2016, CLC Binh Duong Paper Mill has adhered to the group's core principles of "caring for life, resource utilization, and contributing to society," aiming to become a benchmark for sustainable paper industry in the local community. In 2022, the mill utilized approximately 330,000 metric tons of recycled paper, achieving a 100% recycling rate and processing over 30% of locally sourced recycled paper in Vietnam, practicing "full resource circulation". The mill also implemented ISO 50001 energy management, surpassing annual energy and steam conservation goals. Internally, talent development through Total Productive Maintenance (TPM) and proposal improvement systems, along with competitive salaries, annual free health check-ups, six months of maternity leave, and other comprehensive compensation benefits, contribute to local employment growth and increased income. Externally, Binh Duong Paper Mill established Binh Duong Hospital, assisted the Vietnamese government in purchasing COVID-19 vaccines, and provided epidemic prevention materials. These efforts were recognized with the "2022 CSI Vietnam Top 100 Sustainable Businesses" award, ranking 14th among over 400 participating companies.

3. From first in Taiwan to first in Vietnam: Transplanting GHG control experience to set example in Vietnam's paper industry ahead of the government

Since obtaining the world's first ISO 14064-1 certificate in 2005, CLC has initiated emission reduction management. While the Vietnamese government is still in the process of drafting related regulations, Binh Duong Mill has successfully obtained the ISO 14064-1 certificate, becoming the first benchmark enterprise in the local paper industry. In the future, the mill will continue to use low-carbon and circular fuels, improve circular energy efficiency, utilize local agricultural residue such as cashew shells and rice grain as bioenergy fuel, and actively introduce advanced equipment and innovative technologies to enhance energy efficiency and reduce resource consumption.

ESG: Supply Chain Management

Building Sustainability National Team by Organizing Paper Industry Carbon Neutrality Alliance

To support IDB's "getting seniors to help juniors" policy, we have established the "Industrial Paper Carbon Neutrality Alliance," Taiwan's first carbon reduction appliance for industrial paper, in collaboration with upstream and downstream industry partners to build and implement a true green supply chain by optimizing the fundamental capability for carbon reduction through progressively inventorying the carbon reduction needs of partners, improving carbon management knowledge, and integrating government consultation resources.

1. Leading the whole industry chain through "getting seniors to help juniors"

According to CLC President Ching-Biao Chang, "Facing the upcoming carbon border tax of the EU and carbon fee of Taiwan, and the carbon reduction needs of branded customers of the supply chain, it needs the cooperation of the whole industrial chain to work together." As the center business of the Industrial Paper Carbon Neutrality Alliance, CLC will team up with upstream materials, equipment suppliers and downstream container customers of industrial paper to start the survey of the carbon reduction needs, organizational carbon inventory, and product carbon footprint inventory of members and build a carbon database for investment in low-emission technology and green energy, promotion of actual emission reduction, and acceleration of the low-carbon transformation of the industry chain led by CLC so as to turn the produced industrial paper into the first option of world-leading manufacturers. As we are the demonstration business of the appliance, we will share the experience in an alliance operation with competitors to promote the total low-carbon, green supply chain transformation to the paper industry.

2. Scale for Good! Expanding sustainability competitiveness with 300 suppliers

Emphasizing "Scale for Good!" As a leading player in the paper industry, CLC actively leads ESG dimensions such as improving low-carbon products, innovative applications, responsible production, employee development, and social inclusiveness through supply chain management. This includes setting SOPs, evaluation mechanisms, and guidance to establish a sustainable supply chain ecosystem. We organizes an annual ESG conference for suppliers, commending outstanding suppliers and exchanging ESG strategy trends. The third "2022 CLC Supplier ESG Conference" focused on three sustainability issues: climate change, low-carbon products, and information security. In addition to expert sharing, we planned a third-party "cybersecurity risk assessment service" to help the supply chain quickly understand cybersecurity risks, aiming for collaborative supply chain cybersecurity defense. With 300 key suppliers, CLC strives to create a sustainable ecosystem together.

ESG: Talent Development
Activating Sustainable Talent Development 10-Year Plan for One-stop Green Talents Development

Looking forward the labor shortage and global supply chain trends in the manufacturing industries, we set the Low-Carbon Smart Paper Transformation Project and established the Sustainable Talents Development 10-Year Plan according to the S.M.A.R.T. reform in operations and manufacture during the Company's 60th anniversary in 2019 to build the green leader talent pool. We set 48 hours of education and training per employee, development of 300 internal instructors, and realization of young management by 2030 as the targets to systematically implement ESG competency education and develop multifaceted international talents through job rotation in response to the increase in overseas business locations. Additionally, by increasing employment channels with industry- academia collaboration and optimizing performance in recycling and emission reduction through technological exchange, we devote ourselves to reversing the talent shortage disadvantage of traditional industries to promote the sustainability and mutual prosperity of the paper industry.

1. CLC 60+ Developing S.M.A.R.T. green leaders keeping up with the times

CLC's "Smart Paper 4.0" not only emphasizes the S.M.A.R.T. approach to deepen internal carbon reduction effectiveness through technology and operations, but also emphasizes the cultivation of forward-thinking green talents in various areas, including technical engineering, ESG governance, digital technology, crisis management, and international languages. In line with trends in each field, apart from dynamically adjusting internal training goals and course content, long-term talent development plans are established for key positions. CLC actively promotes industry-academia collaboration, internships, interdisciplinary programs, and the establishment of internal academies, aiming to build a stable pool of sustainable talents for the company and traditional industries.

2. Creating value up to NT$370 million through developing sustainability competency and smoothening channels for carbon reduction proposals

We also emphasize overall training and adaptive development. We systematically develop an internal training system by pay grade and competency, develop exclusive courses by duty needs, and combine learning achievement with annual performance evaluation. In addition, we offer 455 types of E-Learning resources, benchmark speeches, and funding for advanced studies. In 2022, employees engaged in over 40,000 hours of self-imposed learning to develop a lifelong learning corporate culture. In response to the transformation targets for the next 60 years, we have developed over 300 internal instructors and combined the training system with the total production management (TPM) implemented from operations to manufacture from 1999 based on the core of "experience inheritance and virtuous competition". Every year we invite employees to make proposals for optimizing operations, management, and production equipment use to smoothen the communication channel between frontline manufacturer to senior management at headquarters. Finally, outstanding proposals are determined through interdepartmental selection and implemented for the Company to improve the overall production synergy. A benefit of up to NT$367 million is expected to create in 2022. Employees are also rewarded with plentiful "sense of achievement" to develop a better "sense of honor" and "sense of responsibility"together with the Company.

ESG: Social Inclusion

Ingraining Education for Secondary Forest Unveiling Green "Inclusion" in Future Taiwan

In response to the spirit of SDG4 Quality Education of the United Nations, we began to build paper libraries across Taiwan based on our papermaking core competency in 2014 to bring reading and environmental education resources to remote townships so as to promote Secondary Forest education. In recent years, we have further teamed up with various sustainable partners, including producing teaching aids of sustainable development and organizing teacher training camps with Tetra Pak and Future Parenting Platform and building paper libraries with Good Neighbor Foundation of President Chain Store Corporation. In 2022 we further built the first paper library outside Taiwan Island on offshore island Kinmen. We have already built a total of 25 paper libraries, supplied 6,300 books, and developed nearly 500 sustainability teachers to devote to developing the total sustainability awareness in society through elementary education.

1. Building 40 100% recyclable paper libraries by 2030

Promoting the "Second Forest, Paper Loves Reading" for a long time and creates sustainable and aesthetically pleasing "paper" reading spaces in elementary schools throughout Taiwan. Unlike traditional libraries, the design of paper libraries features display racks that allow themed books to be more prominently showcased. They are complemented by adorable paper trees, elephants, paper desks, and chairs, transforming traditional, cold libraries into inviting spaces that greatly enhance children's desire to read. With a goal to establish 40 libraries by 2030, CLC will continue to accept for its projects in Taiwan and collaborate with sustainable partners from various sectors to promote the establishment.

2. Ingraining the circulation seed of secondary forest, developing nearly 500 sustainability teachers

To promote the correct sorting of recovered paper and thereby realize the circular economy, we developed lesson plans, picture books, and card games and gave presentations in collaboration with Tetra Pak and Future Parenting Platform and activated the "Paper circulation and recycling" Sustainability Education Teacher Camp across Taiwan to actively empower elementary school sustainability teachers. Since the start of the project in 2021, we have arranged face-to-face instruction, training, and sharing with teachers in Taichung, Hsinchu, Kaohsiung, Taipei, New Taipei, Hualien, and Chiayi through a total of 10 training camps to empower nearly 500 elementary school sustainability teachers to continuously ingrate the correct concept of recycling and sorting so as to sow the seed of circulation in society.

More about projects and outcomes of "Paper circulation and recycling": 
社會共融 - 企業永續發展 - 正隆股份有限公司 (

Teacher, Kaohsiung Ming Yi Elementary School Miss Pi-Hsuan Liang

Use picture books to teach lower-year students paper sorting for recycling, it is easy to understand and can motivate learning in children. After understanding the whole paper recycling process and products made with recycled paper, children can better understand that resource recycling is not just a slogan but a practice in the daily life.