Product Responsibility and Customer Service

Sustainable Supply Chain

Product Responsibility and Customer Service

● Strategy: Based on the recyclability of paper products, implement green design and green production at different stages of product life-cycle to reduce environmental impact; maintain customer privacy; fulfill product and supplier responsibility.

● Goals of 2030: Customer Satisfaction: 88 marks

Quality is key to sustainable operations, and providing customers with the required products and services is our mission. We implemented the ISO 9001 quality management system (QMS) at all CLC plants and mills across the globe to maintain and make continual improvement to improve product quality and enhance customer satisfaction through total participation and the PDCA management cycle. In addition, we publicized the quality policy about the hazardous substances and raw material quality management in ESG Supplier Meeting.

Facing the challenges of the changing global economy and market, CLC accelerates the upgrading and transformation of product development and production management, integrates industry chain partners, and strives to recycle used products into the manufacturing process to form a complete product cycle. We have 4 paper mills, 7 box plants in Taiwan. Recovered paper and virgin pulp are the major materials for product at paper mills, while the corrugating base paper made by the paper mills is what box plants use to
make corrugated box products.

In response to the sustainability trend, we have been using recycled paper as the main raw material for a long time to preserve forest resources and reduce carbon emissions. We also procure sustainably managed forest pulp, demonstrating our commitment to forest conservation. Although the supply was affected in 2022 due to extreme weather conditions and other factors due to the impact of the natural and man-made disaster, strike, conflagration, and Russia-Ukraine War, causing the reduction of the supply, the proportion of FSCTM pulp in the overall procurement of virgin wood pulp still reached 92.6%. Other achievements are as follows:


▸ Recovered paper utilization rate 92.5%:We used about 1.572 million MT of recovered paper. Two-thirds of recovered paper was purchased locally from Taiwan to effectively promote paper recovery and recycling in Taiwan.
▸ Recycled materials 96.2%:We used raw materials consumption totaled 1.699 million MT including domestic recovered paper of about 1.087 million MT, overseas recovered paper of about 0.485 million MT, virgin pulp of about 0.127 million MT, and other plant materials, such as starch and tapioca; and about 0.067 million MT of non-recycled materials, such as chemicals for papermaking.

Product Health and Safety

Industrial paper is CLC’s major product, and we take product safety seriously. From raw materials procurement to production into finished product delivery, we have established well-planned management regulations. In raw materials managements, incoming quality control (IQC) personnels perform quantitative sampling inspection and adjust the sampling counts based on the conformity frequency. However, we still perform sampling inspection on inspection-exempted quality materials once a month. If nonconformities are found, the inspection frequency will be changed into inspection by lot. Self-quality management by production and shipping personnel is performed during production and shipping for real-time capture of the quality status at each stage. Full-time QC personnels inspect the quality of finished products shipping in and out of the warehouse according to the required frequency. Through the double control of on-site and QC personnel, we assure that qualified products in good quality are well delivered to customers.

Inspection specifications of industrial paper

Every year we send products to the SGS laboratory to test for the content of hazardous substances according to the EU testing items and specifications, such as the EU's REACH, SVHC, and RoHS of the EU; Sony's Environment-related Substances to be Controlled (SS-00259); halogen content specifications; and the EU Standard EN 71-3 heavy metal safety requirements for toys. In 2022, CLC products passed all regulatory requirements. As the REACH (SVHC) testing items have increased from 16 to 224 items over the years (Added 5 items in 2022), in consideration of the inspection efficiency and customer demands, we adopted the Full Material Declaration (FMD) management-at-the-source model in 2021 to replace finished product inspection reports. The FMD better fits the internal control of hazardous substances. In 2022, the Quality Department established a Supplier Management Team to manage suppliers from the source of raw materials. They implemented guidelines for suppliers to regularly provide hazardous substance testing reports for raw materials, to ensure that the materials used in production prevented from harmful substances.

Inspection specifications of household paper

Chupei Mill producing household papers implements the ISO 22000/HACCP management system to provide consumers with safe products. Products are also sent to impartial inspection agencies to test the total plate count, E. coli count, and migration of fluorescent whitening agents to ensure compliance with all legal requirements. Eco-friendly toilet tissue, paper towel from Chupei Mill are tested for the content of the BPA to ensure consumer safety and worry-free, and the test result in 2022 is not detected.

Package design and certification

The compressive strength and drop tests must be performed on package structure design to prevent products from damage during transportation. In addition, packaging is one of the items inspected by the Commodity Labeling Act, the graphic design drawings must be sent to the SGS for package label content review to meet the international product record standards, and the location and size of the FSCTM Mark on the package must also be validated by law.

Waste reduction and energy conservation from printing plate-making, enhancing efficiency by 6–10%

Environmental protection and waste reduction have been the focus of the printing service at box plants in recent years. After using electronic drafts for paperless operation for the drawings of the sales units and customers, the pre-printing team continuously reduced color printing up to 13,000–15,000 A4 sheets in 2022, reducing paper and ink consumption by 1,000 sheets over last year. Additionally, film inkjet printers will be used in 2023 to continuously reduce the consumption of traditional chemical development film. Additionally, we are also committed to enhance operation efficiency, energy conservation, and carbon reduction. In 2022, 6–10% of labor, time, and printing area were reduced through the simplification of marking in the pre-printing and plate-making processes. In the future, we will continue to enhance operation efficiency.

Promoting plastic container reduction for zero waste with the supply chain

As major resin suppliers used to contain resin with plastic barrels, we needed to hire qualified contractors to dispose of such containers afterwards. Besides causing additional disposal expenses, those barrels are unable to be recycled or resued. After frequent communication and efforts, some suppliers began to replace plastic barrels with reusable metal barrels in 2021 to significantly reduce the disposal of plastic containers and the waste of resources. In 2022, a total of 280 to 320 plastic drums weighing 200 kg each were reduced, resulting in a decrease of approximately 60 plastic drums compared to the previous year. The company will continue to explore various waste reduction measures in collaboration with suppliers.

Product and Service Labeling

All household products produced and sold by our company have obtained the certification mark, and undergo annual inspections and approvals from the Bureau of Standards, Metrology and Inspection (BSMI). The quality and labeling of our products comply with the CNS standards. To enhance customer trust and confidence, some of our products provide QR codes for consumers to scan and view SGS testing reports. In 2022, there were no incidents of non-compliance with product specifications and labeling in our production and sales.

Insisting on safety and quality, all children's board games and toys, such as the "Animal Adventure Memory Game," "Pinball Game," "Paper Studio DIY" by Paper Studio have been certified to pass the toy safety standards by the BSMI.

Protection of Customer Privacy

To ensure the security of customer data, we have established related mechanisms to protect and manage customer data, including strengthening and education on "customer data" and "information security" and request employee to uphold the non-disclosure agreement in business activities. There is no incident relating to information security has been reported, and no complaint about customer privacy infringement or customer data loss was reported in 2022

"Quality Policy: Total Participation, Quality Maintenance, Customer Satisfaction"

Customer Relationship

Valuing product quality and implementing environmental sustainability, the CLC factories at home and abroad regularly complete the ISO 9001 quality management system and FSCTM sustainable forestry verification, and also make improvements through the implementation of customer satisfaction surveys every year, and accelerate the introduction of digital management, committed to improving customer service. The Household Products Division has a nationwide customer service network where consumers can inquire about relevant questions through the official website, social media pages, and the AeSHOP online shopping platform. We also have a toll-free hotline (0800) dedicated to serving consumers, providing prompt responses to their needs.

To effectively settle customer complaints and handle product returns, we have established a well-planned management mechanism and customer complaint handling procedure for QC personnel and related staff to communicate with customers and determine and analyze the anomalies complained by customers. The production and related units will analyze and investigate the causes of anomalies, make feedback, and propose corrective and preventive action to prevent the recurrence of the same mistake. We have digitized the customer settlement process. Besides enhancing the handling efficiency of customer complaints, data and records are retained and managed electronically to enhance service quality.

Taiwan's operating sites have fully implemented the electronic Quality Abnormality Report system. The Household Products Division has further established the SalesForce CRM customer relationship management platform in 2021, enabling real-time understanding of customer needs and relationship management to enhance customer satisfaction. The Vietnam paper mill was the first to launch the electronic implementation of paper quality abnormality reports by the end of 2022, and the rest sites in Vietnam will continue to implement it in 2023. To strengthen and stabilize the quality of paper products, the Paper Products Division, including Taiwan, China, and Vietnam, implemented a standardization
project in 2022, focusing on machine standardization management to enhance the service and efficiency for customer. We conduct an annual customer satisfaction survey and has set a long-term goal of achieving a satisfaction score of 88 by 2030. In 2022, the customer satisfaction score was 86.6, increased by 0.1. The failure to reach the annual target was due to the non-compliance of some tissue paper products with customer quality requirements (already being improved).

Regarding customer complaint rates, there was a decrease in the complaint rate for paper products compared to the previous year. Compared to the 2022 targets, the achievement rates for complaint rates were 62.5% for industrial paper, 90.6% for household product, and 116% for corrugated container, with an average goal achievement rate of 98%.


As CLC products have never been banned in any specific markets, no quality doubts or sale of controversial products have been reported. Promotional campaigns are implemented according to related domestic laws and regulations. Neither exaggeration nor falsification is allowed in publicity and marketing, and undue competition is prohibited to ensure safety for the public and balance of the market. In 2022, no violation of related laws and regulations and voluntary rules is found in product campaigns.