Corporate Sustainability

Strategies of Climate Change

1. Greenhouse gas management

Climate change has become a significant hazardous issue around the globe. Be aware of the impact thereof, SPIL considers climate change mitigation and adaptation measures as an important issue for our business operations. We have set out climate change improvement and mitigation strategies as our guiding principles of response, and implemented GHG management in daily operations.

SPIL has, since 2005, conducted autonomous GHG inventory and, based on quantitative data analysis, learned that the key GHG emission source is power consumption. This has motivated us to establish an energy team in 2007 to systematically and continuously improve our energy and power conservation countermeasures.

Since 2010, our facilities in Taiwan have implemented ISO 14064 -1 GHG verification each year to ensure the data quality and to provide stakeholders with the most credible carbon management information.

Since 2011, we have begun to conduct product carbon footprint inventory and participated in relevant EU projects to respond to the international development trends while having fully supported end-users in supply chain carbon footprint inventory to provide even more accurate carbon emission information with respect to the packaging and testing processes.

In 2013, we further promoted the certification of ISO 50001 Energy Management System, and included the energy conservation and carbon reduction work in our business operations.

2. Greenhouse gas inventory and verification

In 2005, SPIL launched organizational GHG inventory (Da Fong Facility, Chung Shan Facility, Changhua Facility, and Hsinchu Facility), where the operations of Zhong Ke Facility were included in 2015. Starting from 2010, all of our inventory data are verified by a third-party notary party based on the ISO 14064-1, known as the GHG emissions verification standard at the organizational level. All successfully passed the reasonable assurance level to ensure data quality. SPIL limited started to conduct the GHG emissions inventory in 2010 and has started to carry out the verification every year since 2015.

The GHG emissions inventory categories are divided into: Category 1 - direct GHG emissions and removals; Category 2 - indirect GHG emissions from imported energy; Category 3 - indirect GHG emissions from transportation; Category 4 - indirect GHG emissions from products used by organization; Category 5 - indirect GHG emissions associated with the use of organization’s products; Category 6 - indirect GHG emissions from other sources. SPIL calculate GHG emissions through defining its emission sources and conduct data collection and quantification.

We have completed the ISO14064-1:2018 inventory and quantification in 2020, and even more complete inventory of 11 indirect GHG emissions in Categories 3 to 6 in 2022, in order to keep abreast of the sources of carbon emissions more accurately and comprehensively while conducting in-depth management of the carbon life cycle of products, and exploring the room for reduction and opportunities thereof.

3. Low Carbon Productions

An energy conservation team chaired by the Chairman was formed in 2007 and then upgraded to Energy Management Committee in 2013 to assign personnel to promote and facilitate the operations of ISO 50001, and to assist the production line in reducing energy and resource consumption through the evaluation of machines, and discuss a solution to enhance the energy efficiency of public systems at each facility. The committee also sets energy conservation targets and sets out an implementation plan every year, supplemented by all units' energy conservation measures, to regularly track and control the implementation results, and report the energy-saving results to the Sustainability Committee every month.

Upon the adoption of the ISO 50001 Energy Management System in 2013, SPIL has established energy management procedures and system, and made continuous improvements thereto through the PDCA mechanism. In 2016, all of our facilities in Taiwan passed the certification thereof. We obtained the certificate of new ISO 50001 (2018 version) standards in November 2019, and successfully completed the annual tracking and verification in October 2023.

To respond to the domestic and foreign pressure on reducing carbon emissions, reducing energy consumption and solving the GHG emission issues, SPIL has launched and implemented various energy-saving measures to continuously increase the energy efficiency of our facilities and production facilities. Our goals are to optimize the operational efficiency of our production facilities, adjust the parameters thereof, and replace the lighting with energy efficient lamps. In 2023, we saved a total of 95,774 MWh, which is 6.4% electricity consumption. In total, we have saved about 49,360 tCO2e, which is about the amount of carbon absorbed by 127 Daan Forest Parks. We also continued to purchase 291,960 MWh of I-REC renewable energy certificates this year, and used 12,033 kWh of renewable energy in Taiwan and use the energy baseline to monitor the rationality of electricity consumption every year. SPIL has been implementing energy-saving measures for many years and this task will become even more challenging in the future. For 2024, we aim to save 7% of our electricity consumption for the year.

To build a green-energy and low-carbon environment, SPIL has prudently evaluated the development conditions for renewable energy. In 2012, the first set of solar power energy generation facilities with a capacity of 9.7 kW were completed in the Da Fong Facility. It totally generated 9,996 kWh in 2023 and 111,935 kWh cumulatively. As the Zhong Ke Facility has a spacious roof with sufficient sunlight, SPIL launched a plan in 2016 to establish a solar energy generation system that can generate about 2,800 kW of electricity. In the middle of 2018, this system was integrated with the parallel power supply system with Taipower. The system produced around 3700 MWh in 2023. Besides, in November 2019 Changhua Facility established a 499-kW solar energy generation system and completed integrating a parallel power supply system with Taipower, which generated around 580 MWh of power in 2023. In January 2020, the Taichung City Government awarded SPIL a certificate in recognition of its contribution to green energy and energy conservation, and actively installed solar photovoltaic devices for large electricity consumers.In 2023, Zhongke Factory won the Net Zero Excellence Award in the 2nd Taichung City Sunshine A+ Competition . Zhongke Solar Plant No. 2 is expected to be completed in June 2024 and will provide a 1-watt solar power generation system to increase renewable energy power generation and contribute to the creatio of a low-carbon city.

Water Resources Management

The climate change arising from the water shortage issue has gradually become an underlying concern for companies worldwide. Taiwanese companies are also challenged by the same issue during the drought period. SPIL has therefore put the use of water resources as one of our management highlights and an important indicator for sustainable development. Water conservation and recycling are our primary development direction, where we continuously promote water conservation and wastewater recycling and reuse technology every year. With respect to the aspect of water conservation, we have not only modified the water use parameters of our machines and introduced new equipment to reduce the water consumption but also be seeking collaboration with academia. Furthermore, we have set short-, mid-, and long-term targets for wastewater recycling with the aim of minimizing the impact of our operations on the environment.

1. Water recycling and reuse

To reduce water consumption, the Company has designed different recycling equipment according to the quality, amount, and characteristics of wastewater. The wastewater will pass through a series of processes including separation, microbial treatment, and membrane filtration. Then, the processed wastewater will be condensed again to extract clean water therefrom before being transported back to the water supply system.

In 2023, the Company recycled 12,103,136 metric tons of water in total, an increase of 4% as compared with that in 2022. This also shows our emphasis on and efforts in water resource management. We will also continue to develop reclaimed water recycling and zero emission technology in the future. In 2024, SPIL will continue to invest in the installation of water recycling equipment to increase the quantity of water recycled from our water recycling system.

2. Water conservation planned and results

Water discharged from processes at SPIL's facilities is separated as per their quality and characteristics. The clean process water, for example, is collected, recycled, and then reused as secondary water, which can still be reused to flush the toilet, water lawns and flowerbeds, clean the cooling tower, or be supplied as cooling water for cooling towers, wash the waste gas washing tower, or reclaimed water from the recycling system despite the relatively poor quality.

Apart from recycling wastewater and reducing water consumption, all machines purchased by SPIL for plant expansion or expansion of production facilities shall be water efficient and must pass the energy efficiency evaluation. As for existing machines, it is a must to optimize their production parameters or improve their water consumption by implementing the measures as described in the table below. The actual amount of water consumption reduced in 2023 reached 251,085 metric tons with an achievement target of 79,259 metric tons.

3. Introduced water footprint

To better understand primary cause for water resource consumption during production, SPIL implements water conservation to get to the root of the problem. This company successfully passed external water footprint verification in 2014 for L/F and bumping products according to the Water Footprint Assessment Manual published by the Water Footprint Network. Water footprint distribution results show that water consumption during production (blue water footprint) primarily comes from bumping grinding, cutting wastewater, and water used to clean off chemicals. These items will continue to be listed as important areas for water conservation during production.

Green Products

In order to pursue environmental sustainability, fulfill the obligations of global citizens and reduce the impact of product production on the environment, SPIL is committed to its green product policy of "compliance with regulations," "energy saving and waste reduction", "hazard prevention," "continuous improvement" and "communication," and is moving toward the goal of total green products. By further improving SPIL’s overall production efficiency and green competitiveness through a hazardous material management system, the Company is committed to exceeding the requirements of the laws and regulations, and become a an outstanding “green” company.

1. Hazardous Substances Management System

To meet the ever-changing demands of semiconductor packaging, environmental specifications for product quality (e.g., lead-free, halogen-free, or EU RoHS directives for hazardous substances in electrical and electronic equipment), and customer requirements to ban or restrict the presence of hazardous substances, SPIL is actively developing various advanced green packaging technologies and establishing a hazardous substance management system in accordance with the international standard QC 080000 (IECQ HSPM). We continue to collect and pay attention to the development and trend of green regulations in order to grasp the opportunity to develop timely packaging technologies in line with global trends and meet customer needs, so that green product regulations become a boost to business development.

SPIL established a cross-departmental organization and defined the organizational authority and responsibility of each department. Through the implementation of hazardous substance management procedures, SPIL ensures that the operation of related activities meet the requirements of customers and the relevant laws and regulations to improve customer satisfaction, and reduce the impact of hazardous substances on people or the environment.

2. Hazardous Substrate Management System Milestones

SPIL manages the risk of hazardous substances at all end-to-end stages of R&D design, inbound material inspection, supply chain management, and production management process to ensure that the final product can continuously and stably meet customer and international regulatory requirements. In 2008, we passed the QC 080000:2005 Hazardous Substance Process Management System standard certification, and in 2014, we completed the QC 080000:2012 revision certification. In 2019, we passed the new QC 080000: 2017 certification. In addition to obtaining third-party notary and international manufacturer certifications, SPIL's HSMS is capable of producing green products that comply with the EU RoHS Directive and related international hazardous substance regulations, which positively contributes to the company's business development.

In 2003, SPIL was one of the earliest companies to pass the Sony GP (Green Partner) Management System, the industry's most widely recognized system for controlling hazardous substances in products. As a member of Sony's qualified suppliers, SPIL continues to comply with the requirements of Sony SS-00259 technical standards and will complete the implementation of Sony SS-00259 version 20 in 2022.

Clean production

1. Waste management principles

Based on the principle of “waste reduction during the production process; recycling resources for sustainable use”, SPIL adopts high-efficiency raw materials for production, minimizes the use of raw materials, or uses renewable or low-pollution raw materials to minimize the generation of waste while cutting production costs. Unless with special needs, we always do our best to use non-composite packaging materials.

In response to the promotion of sustainable environment, we have introduced emerging technologies to establish a waste treatment system in each facility to reduce waste discharge. We also actively implement a take-back recycling program among suppliers for reuse. Other waste materials are classified as per their nature and then reused, extracted, incinerated for heat recovery or disposed of by physicochemical treatment. This helps not only to increase the possibility of recycling waste resources but also to alleviate the impact of waste disposal on the environment. Only waste that cannot be disposed of as per any of aforesaid methods will then be dumped in landfill sites.

“Legality” is the only proper course to be pursued when we choose the right contractor for waste disposal and treatment work. With a license issued by the competent authority, a contractor shall meet a number of criteria in order to be listed as a qualified contractor. During the waste clearance, transportation and disposal process, SPIL also pays great attention to the entire process while ensuring that each batch of waste is in the waste treatment facility as planned and properly treated and randomly inspecting the reasonableness of the GPS routes and time of the transportation vehicles. To fulfill our responsibility as a generator of waste, we arrange an audit plan every year to follow the transportation vehicles to the treatment facilities to conduct irregular on-site audits to ensure that the contractors have disposed of all wastes. In 2023, we audited 36 waste disposal, treatment, and reprocessing contractors. All of them scored between 80 and 100 at great and excellent levels.

2. Promoting waste reduction

SPIL has implemented the waste reduction project for many years. Under the collaboration between production lines, plant affairs unit, and other EHS units, we launched 6 waste reduction plans in 2023. We have thus succeeded in reducing the creation of waste liquid by adjusting the production process; using resin bits to absorb heavy metal for recycling, and using steam heat exchange to vacuum and heat the concentrated waste liquid to vaporize the waste solvent, condensed, and recovered. Each plant treats wastewater discharged by itself and pays attention to the development of diverse technologies in the market while actively adopting the reuse and take-back recycling methods to achieve the goal of environmental sustainability per the concept of a circular economy. In total, a total of 3,809 tons of waste was reduced in 2023.

Air pollution control

With respect to exhaust gas treatment, SPIL has investigated the types, emissions, and pipeline locations thereof at the process planning stage and before the installation of machines, to expand the production facility and facilitate the configuration of pipelines and relevant equipment with an effective and secure surveillance system to ensure that the treatment effect thereof has reached the standard performance. Two types of waste gases exist during existing processes: acidic/alkali flue gases and volatile organic flue gases are produced therefrom and therefore require different treatment methods. Acid-alkali exhaust gas shall be processed using a washing tower, whereas volatile organic exhaust gas must be processed using the best available control technology (BACT) processing equipment. That is, the volatile organic waste gas will be firstly condensed using the rotor increases its intake concentration and then diverts into the regenerative thermal oxidizer (RTO) for processing. Due to the increase of Chung Shan Facility’s production capacity, the Company has installed one set of rotor and RTO. This helps increase  the processing capacity of the backup machine while enabling it to respond to any unusual incident effectively. In 2023, VOCs emission density reduced to 0.004 kg/millions of NTD.

Proper treatment and discharge of waste water

Continuous water quality (pH) and water volume monitoring systems, which produce warning sounds when relevant values reach the threshold, are installed at the key points and sewage outfalls prescribed in the wastewater processing procedures. Furthermore, a water quality laboratory is also established at each production site to run the self-assessment once each week; and SPIL has commissioned a third-party to conduct routine inspection on a quarterly basis to analyze the water quality trend and establish a database thereof. All of these measures enable us to control and prevent potential problems before they become a reality. In 2017, we have successfully connected the monitoring systems of Da Fong, Chung Shan and Changhua facilities with the Environmental Protection Bureau as prescribed by laws. This allows government units to, together with us, monitor the status of wastewater and further reduce the probability of pollution.In 2023, SPIL continued to organize water quality abnormality and leak emergency response drills. We have requested not only all plant affairs and EHS personnel to immediately respond to the emergency, but also production units to simulate production suspension. The purpose thereof is to enhance the response capability of production units in order to reach our ultimate goal of having zero pollution to our environment.

ESH Policy / HSF Policy

1) Comply with regulations: Work under the guidelines of both domestic and international ESH regulations and standards, Hazardous Substances Management and other requirements. 
2) Conserve resources and minimize wastes: Elevate the efficiency of energy usage. Participate in developing green energy to reduce greenhouses gas emissions. Reduce industrial wastes, implement resource recycling, and promote circular economy to use resources effectively. Continue to develop green production and conform to the request of Hazardous Substances Management.
3) Prevent hazard: Implement risk assessment and emergency response. Improve processes in production, prevent possible occupational injury and illness, and promote the physical and mental health programs for employees. Establish high quality working environment. Reduce the use of hazardous substances and negative impacts on employees and environmental.
4) Continue improvements: Sustain in improving the ESH and Hazardous Substances Management. Enhance ESH and Hazardous Substances Management performance. Mitigate environmental impact and reduce risk of hazard.
5) Promote communication: Promote the ESH and Hazardous Substances Management awareness for employees through education and consultation. Communicate and consult the related parties, such as employees, their representatives, suppliers, subcontractors, etc., the ESH and Hazardous Substances Management requirements to ensure employees and their representatives being available and having resources to participate in activities of ESH management system implementation to promote ESH and Hazardous Substances Management performance. 

Energy Policy

1) Comply with regulations: Work under the guidelines of both domestic and international Energy Management .
2) Reduce carbon emissions: Encourage the implementation of energy-saving programs, and adopt energy-saving designs to reduce abnormal energy consumption.
3) Reduction of Energy Consumption: Design and purchase high efficacy facilities and equipment.
4) Continue improvements: Continue to promote improvement and process , strengthen energy management , and conform to the spirit of ISO50001.