Oneness Biotech recognizes the enormous impact of climate change on the economy, society, and the environment. As one of the leading biotech pharmaceutical companies in Taiwan, we must heed our corporate social responsibility and respond to the challenges brought forth by climate change. In 2023, the Oneness Biotech Risk Management Committee identified climate change as one of the potential risks. To measure and analyze the impact of climate-related risks and to formulate control measures, we adopted the framework from the Task Force on Climate-related Financial Disclosure (TCFD) issued by the Financial Stability Board (FSB). Based on the framework, we disclosed our governance, strategies, risk management and metrics, and targets to help investors and stakeholders understand Oneness Biotech’s climate actions.
Governance
Climate strategy is one of the major risks identified by the Company and incorporated into the Company's risk management process. The Board of Directors monitors, manages, and makes decisions on such issues and sets up dedicated units in charge of implementation of corresponding contingency measures.
The ESG Committee reported the progress and result of sustainable development and risk management to the Board of Directors on February 24, August 10, and November 9, 2023. The Board of Directors supervised the progress of the implementation of sustainable development matters, including GHG inventory and the verification program.
Strategy
To raise awareness about the shot, medium and long term climate-related risks and opportunities, Oneness Biotech had held multiple workshops participated by dedicated specialists and senior managers from various departments who had intensive discussions with external third-party professional teams to analyze potential physical and transition risks as well as related business opportunities. The Company then formulated mitigation and adaptation strategies to enhance corporate climate resilience.
Climate Risks and Impacts
In consideration of the degree of impact and occurrence time, as for short-term (within 3 years), the most significant climate-related risk identified is “Extreme Climate Events”. The long term (over 5 years), “Attract Low-carbon Investment” and “National Net Zero Policy” have a higher impact. We have therefore formulated contingency strategies and launched mitigation and adaptation actions to enhance climate resilience.
Climate Risk and Opportunity Matrix
Risk Management
In order to enhance the Company’s corporate governance, establish an effective risk management mechanism, assess and supervise the risk-taking ability and the current risk management situation, the Oneness Biotech Board of Directors approved the “Risk Management Policies and Procedures” in 2020 as the Company’s highest guiding principle of risk management. Through the policies and procedures, the Company integrates and manages various potential strategic, operational, financial and hazardous (climate change, legal compliance, market competition) risks that may affect operations and profitability, carries out risk warnings and takes appropriate preventive measures, or maintains operational activities in the event of an accident.
The responsible unit identifies relevant risk factors, analyzes the potential impact of each risk on the Company’s operations, and develops and adopts measures to control risks within the Company’s acceptable range. The Risk Management Committee receives regular reports from the Risk Management Task Force and supervises the status of risk management execution by the Company and its important subsidiaries. At the meeting of the Risk Management Committee in 2023, the risks related to extreme climate were monitored with relevant countermeasures formulated, including, raw material inventories and future production capacity responses.
Metrics and Targets
In line with the Government’s goal of 2050 net zero emission, Oneness has taken active carbon reduction after completing greenhouse gas inventory in 2021. Furthermore, we set the ambitious targets that reduce carbon emission year by year, through continue to promote energy-saving replacement, renewable energy and carbon credit projects, and then remove 100% Scope 1 and Scope 2 emissions and reach carbon neutrality by 2025.
Risk Control Metrics
Based on the major climate risks identified in 2023, the Company has set relevant indicators to ensure that the risk impact is controlled within an acceptable range.
2023 Key Energy Conservation Measures
- We set up 170.15kW PV and energy storage equipment in the employee dormitory of the Nanchou Plant. After the construction was completed at the end of September 2023, statistics showed that as of December 31, about 54,000 kWh of green power had been generated.
- New employees were required to complete the education and training on the environmental management system, and in-company ESG education and training was arranged. Promotion signs for energy saving and carbon reduction are posted in the plant to raise the environmental protection awareness among our employees.
Adaptation Measures
In the face of increasing extreme weather phenomenon and events, resilience against climate disasters is an important part of business operations.
Property Insurance
- All Oneness Biotech locations are insured with the relevant insurance, and the total insurance amount exceeds NT$800 million.
Avoiding Flooding
- During the construction and planning of Nanchou Plant, the height of the plant was elevated by 85 cm and a comprehensive drainage system was set up to effectively reduce the impact from flooding.
- Cotton Field Organic Farm adopts drainage measures such as retarding basins and water gates to reduce the impact of floods.
Response to Supply Disruptions
- The raw materials have a safety inventory amount ranging from three months to one year according to the delivery period to ensure that the inventory can be replenished at any time, and plectranthus amboinicus is grown off-site to avoid the climate impacting a single region.
Carbon Emission Statistics
Oneness annually conducts GHG inventory in accordance with ISO 14064-1:2018 since 2021, which identified emission sources based on the operation control method. The inventory was also validated by third party for the data quality and completeness.
Rewards for Climate-related Contribution
The Company understand that we need every employee’s effort to mitigate the climate-related impacts and achieve the carbon reduction goals. The Company has published the “Employee Reward and Discipline Regulations” and set criteria for granting rewards. The rewards will be recorded in the Performance Evaluation, and be used as the basis for promotion, salary adjustments, and various bonus or incentives. The examples from the regulations as the table below:
Carbon Removal
The Soil Organic Carbon (SOC) sequestration capacity, which represents the amount of carbon that soil can absorb annually, varies depending on climate conditions, soil physical and chemical properties, and land management practices. In a specific agricultural system, changes in land use and management practices can alter the amount of soil organic carbon sequestration. Since March 2017, the Cotton Field Organic Farm has exclusively employed organic farming methods. To measure the farm's carbon removal capability, Oneness Biotech commissioned National Chung Hsing University to conduct a survey of soil carbon content. The survey included sampling from both the organic farming area of the farm and neighboring conventional farming areas for comparison.
Third Party Verification
Oneness annually conducts GHG inventory in accordance with ISO 14064-1:2018 since 2021. The boundary which includes the subsidiaries is aligned with the consolidated report, and the coverage is 100%. The inventory was also validated by 3rd party for the data quality and completeness.
※The above content is taken from the ESG Report
