Sustainable Products and Development
● Strategy: Adhering to the 3Rs: Reduce, Reuse, Recycle, and develop a variety of green and low-carbon products and services with a recycling business model of resource regeneration, and expand the full circular economy.
● Goals of 2030: Recovered paper utilization rate > 97% *Industrial paper;
Exert creativity capability to develop niche products
Indispensable to food, clothing, housing, and transportation, paper is part of the daily life. We make paper with recovered paper or FSC fibers to facilitate recycling and natural decomposition after use in order to lower environmental impact. Due to the characteristic of recycling and circulation, paper have been widely used by all industries, and the customers and the clients of the packaging emphasized more on the environmental sustainability. And the paper products become the preferred selection of the packaging and transportation materials. As a leading paper company, we are committed to developing a sustainable business model for the circular economy and focus on developing eco-friendly, sustainable products and services at each stage, covering materials purchase; product design, production, and consumption; and disposal after use to reduce resource consumption. We also maintain continual process improvement and use intelligent equipment, increase recovered paper uses, improve product quality, and enhance carbon reduction efficiency. Due to the overall economy slowdown and the equipment failure of Houli auto warehouse, the production volume was decreased in 2022. We consumed a total of 1.572 million MT of recovered paper which decreasing by 0.222 million MT, with an annual reuse rate slightly decreasing by 0.2% to 92.5%, and the reuse rate of industrial recovered paper was still up to 97.6%, increasing by 0.2% over last year, which both reached the target.
Less is More! CLC Maximized Value at the Least Resources with Low-Carbon Products
In response to the global consumption trends of zero carbon and plastic reduction, the global demand for paper packages rose steadily in recent years, particularly in paper package sector driven by the thriving e-commerce in the post-pandemic period.
3R Design: Last mile toward a zero-carbon supply chain
We develop low-carbon and plastic-free, based on the principle of 3Rs to help the market realize green consumption and reduce waste. In addition to reducing the carbon footprint of products without lowering their protection performance through technology development, we enhance the efficiency of logistics and carbon reduction to finish the last mile toward a low-carbon supply chain. In addition, according to the Department of Statistics, Ministry of Economic Affairs, the sales AAGR of Taiwan's online shopping during 2013–2022 was over 10%, in accordance to EPA's online packaging law. We collaborates with e-commerce to enhance product structure and design, implementing lightweight, single-material, and improved utilization practices, as well as reducing the use of colors and adopting water-based ink printing. Additionally, the company introduces the Design-in 3D design platform and sales forecasting system, utilizing AI to understand market trends and customer demands.
R&D and Innovation, Develop Various Sustainable Products and Service
Out of the emphasis on innovation and R&D, CLC invests over 100 million NTD in the development of green and sustainable products and the optimization of production processes, and implement the smart digitalization every year to enhance production efficiency, conserve energy, and reduce carbon emissions, in order to actively keep up with the global trends and customer demands, furthermore, to enhance corporate competitiveness. In 2022, the total R&D expenditure (excluding capital expenditure and equipment fee) was NT$119 million, and the major R&D outcomes are as follows:
✔ Promote expansion, process transformation, introduction of low-carbon energy-saving equipment and technology. Include adding a recovered bleach pulp line at Tayuan Mill (C Mill), biomass CFB boiler system project in Chupei Mill, Phase II/ III of initiated paper machine and production line in Vietnam projects.
✔ Introduced new raw materials to enhance the efficiency and process capability: Saved >NT$13 million annual.
✔ Process optimization and quality improvement: Optimized the process and improvement, and saved costs >NT$20 million every year.
✔ New product development:
· Household tissues: Andante lotion facial tissue, Andante SILLACE premium thickened 3-ply toilet tissue, Lovers 3-ply ultra soft interfold toilet tissue.
· Household products: Dandelion eco-friendly household cleaning products, Andante facial cleaning mousse.
· Industrial packages: High-quality paper tube paper, fresh-keeping corrugated containers, carry bag paper, farm paper, and functional corrugated containers.
❙ Green and Innovative Products Helps Consumers to Reduce Carbon Footprint
A clean and beautiful environment for future generations
In response to the green consumption trend, besides developing green packaging papers for industrial use, CLC also invents circular & low-carbon products in consumer categories. With professional, esthetic structure design expertise, we introduced the "Paper Studio" brand in 2013 to develop edutaining, zero-pollution paper furniture and educational toys for children, pet toys, and cultural and creative products with recycled corrugated paper.
In view of the non-recyclability of most materials used in trade fairs and exhibitions, we develop green exhibition sites using corrugated boards with the structural features and recyclability. At the same time, we introduced digital technology to accurately calculate the consumption of paper materials, reduce the error rate of application, save a lot of paper and manual assembly time, and successfully develop recovered paper exhibition venues and exhibits such as: "CLC paper library", the "Box War" over the years, and the office space or corporate showroom, which can be decorated with festivals or important events. We demonstrated the best circular economy model with the least resources to create the greatest value.
❙ CLC Household Product:
Pamper your loved ones with love and tenderness
In 1993 CLC entered Taiwan's household paper market and launched the "Andante" brand in 1995. With soft quality, delicate texture, and the "pamper your loved ones with love and tenderness" image, Andante has won consumer preference. After acquiring Tien Loong Paper Mill in 2004, CLC continued to launch two quality brands, Lover, Dandelion, and Snow Soft, to complete the household product range with toilet paper, facial tissue, kitchen paper, and paper towel, making CLC the leader of household paper supplier in Taiwan.
Through constant process optimization, introduction of new technology and advanced equipment, including Taiwan's first automated household tissue warehouse, Asia's first millions MT wind turbine, and actively enhance the R&D center to develop high-value and low carbon products to meet increasing consumer demand. Focusing on the market demand of the high-price household paper, we launched the new soft-upgraded "Andante SILLACE Premium Thickened 3-Ply Toilet Tissue", "Lovers 3-ply ultra soft interfold toilet tissue" adding iris fragrance. In addition, "Andante Bath Series" also have extended its product line to Bath Soap and launched "Andante Herbal Bath Soap Set" to offer customers the soft and natural cleaning skin options. Dandelion, the No. 1 eco-friendly brand, has also successfully extended its product line to household detergents, helping consumers to easily reduce carbon in their daily lives and be environmentally friendly.
❙ Use recovered paper for a virtuous cycle Dandelion household tissue
Dandelion household tissue "Keeping the Nature with habit change"
Dump after use: Toilet tissue – a single-use product. To practice responsible production and promote green, responsible consumption, besides making household tissue with FSCTM pulp, we produce eco-toilet tissue with a process that is more complicated than products using virgin pulp, in order to maximize resource utilization and putting environmental interests first. In 2009, we launched the "Dandelion Household Tissue" series with quality similar to those made with virgin pulp and 100% recovered paper to encourage consumers to practice environmental protection and love Earth from daily life.
Made of 100% recovered paper and using clean energy – wind power, the Dandelion Household Tissue is thus Taiwan's first household paper brand to acquire triple certification: The Green Mark, Carbon Footprint Label, and FSCTM Recycled Label. Currently, the annual sales of Dandelion Household Paper exceed 4,000MT, +13% YoY. In addition, we have extended the eco-friendly product line to CLC's second eco-household tissue brand: "Pure Generation", making it Taiwan's No. 1 brand of eco-household paper. Leading in Taiwan, we also introduced the Dandelion multipurpose bag to combine the external package of Dandelion Household Tissue with the dedicated garbage bag to create carbon reduction efficiency ahead of competitors. In 2022, we further introduced the Dandelion Eco-Household Detergent using 100% recycled plastic bottle body to provide consumers with more options for green product brands to contribute to the Earth's sustainable development.
Dandelion Eco-Household Official Website: https://dandelionclc.clc.com.tw/
Driving ESG Innovation and Value Addition
❙ Encouraging the employees to figure out the problems with the excellent cases management system, Brain-storming the ESG innovative cases
Driving operational efficiency with innovation, CLC began to implement activities including the improvement proposal system, QCC, and TPM in 1980 to focus on quality and service improvement. Further in 2008, we promoted the “Excellent Case Improvement Activity” to integrate the evaluation and reward mechanisms of the above management activities. In recent years, we have focused on ESG sustainability governance, and employees are encouraged to actively explore problems through the competition system to boost the healthy competition, enhance problem solving and innovation energy. Since 2021, we have also extended excellent case improvement management activities to overseas subsidiaries, encouraging group colleagues to continue to innovate and optimize.
❙ Nearly 1,000 benchmark cases creating profit over NT$370 million (NT$700 million in 2021-2022
There are nearly 1,000 cases in 2022. A total of 52 proposals entered the final, compared to 44 proposals in 2021 (+18% YoY), creating profit about NT$334 million (+9.9% YoY). In recent 2 years creating profit over NT$700 million to enhance the quality, energy conservation and carbon reduction, innovative service, and working efficiency.
❙ Presenting the ESG excellent cases in public, Creating the organizational culture learning and sharing
We conduct excellent case sharing for the excellent cases through annual plant operation vision meeting every year. Through the CLC E-Learning platform and internal publications, we enhance the internal knowledge sharing and promotes benchmarking within the organization.
❙ CLC: The first paper company in Taiwan to introduce intelligent production and sales and AI digital to win the competitiveness
To enhance operational competitiveness in the drastically changing global environment, besides constantly upgrading and reengineering hardware equipment and completing the ERP system as early as 2003 to enhance operational management efficiency. Starting from smart manufacturing, we independently completed the development of the e-cogeneration system in Houli Mill, the enterprise-wide e-procurement platform, and household product CRM management system during 2012-2017.
Subverting the tradition and moving towards intelligent innovation, CLC is the first paper company in Taiwan to introduce intelligent production and sales. By transforming the production management model, we have transformed from the reactive management in the past to the predictive management. Since 2019, we promoted "Smart Paper 4.0", and have invested more than billions of dollars in paper mills and box plants in Taiwan. Through S.M.A.R.T low-carbon smart paper, we developed high-efficient scale recycling technology to make CLC change into the eco smart factory from traditional factory. By 2022, CLC has completed the promotion of 17 projects, including smart factories, smart steam and electricity, digital IPQC, Smart warehousing, SalesForce CRM customer management, etc., comprehensively improve quality and production and sales efficiency, and improve energy-saving and carbon-reduction benefits through digital transformation. Moreover, by promoting the Power BI interactive business intelligence visual analysis system, we can improve the decision-making efficiency and efficiency of executives, and grasp the business opportunities.
"All digital technologies (AI, big data, cloud, IoT, 5G) are combined to assist with production (knowhow inheritance), implement monitoring and management (preventive warning), and engage in process optimization and performance enhancement."