Environment

Climate change and energy management are vital for PHIHONG's sustainable development. We analyze, control, and reduce greenhouse gas emissions annually by 4.2%, striving for net zero emissions by 2050 to actively combat climate change.

Environmental Policy and Management

PHIHONG’s vision in “Environmental Sustainable Management” is to “save energy, reduce carbon emissions, and minimize environmental impact.” They aim to achieve this by establishing environmental management systems, addressing climate change, and promoting green design to help reduce environmental impact. With environmental sustainability as their goal, they actively promote the research and development as well as manufacturing of green products, commit to managing hazardous substances, improve energy efficiency in power products, and increase product recycling rates. Through interdepartmental cooperation, they are actively implementing various environmental protection measures.

Environmental policy and commitment

Promote environmental management in the spirit of PDCA and CONFIRM to reduce and prevent environmental impacts.
System management enhanced environment performance: energy saving, continuous improvement, and pollution prevention.
Comply with environmental laws and regulations and customer environmental requirements regarding wastewater, waste gas, waste materials, noise, chemicals, banned substances and toxic substances, and promote the implementation of the necessary regulations.
Regularly review environmental objectives and targets and disclose environmental results.

Water resource management

Phihong’s manufacturing sites are primarily involved in product assembly processes with no significant water demands or wastewater generation. Water usage is for domestic purposes. In Taiwan, China, and Vietnam, Phihong’s facilities rely on tap water supply. At its Zerova Phase I and Phase II plants, rainwater collection systems have been installed for recycling and reuse purposes, primarily used for toilet flushing and irrigation, with future plans to utilize it for air conditioning cooling. Other sites manage water resources by improving water-saving equipment, such as installing water-saving valves in toilets and using water-saving faucets to promote water conservation practices in daily life. In 2023, Phihong Group’s overall water consumption rate reached 25.23% compared with the 2021 base year, and the per capita water consumption dropped by 13.6%, achieving the goal of 20% water saving in 2025 compared with the 2021 base year ahead of schedule.

Water consumption table

Energy Type (Unit)	2021			2022			2023
Energy Type (Unit)	Taiwan	Dong guan	Hai phong	Taiwan	Dong guan	Hai phong	Linkou HQ	Zerova	Dong guan	Hai phong
Water intake/water consumption (Million L)	13.109	386.231	26.414	13.668	313.50	57.79	8.76	7.26	237.89	64.42
Number of employees	544	3,869	962	648	3,869	1,423	394	624	2,421	1,216
Water consumption intensity (Million L/person)	0.024	0.100	0.027	0.021	0.081	0.041	0.022	0.012	0.098	0.053
Waste water emissions (Million L)	11.798	347.608	21.131	12.301	282.15	46.232	7.884	6.534	214.101	51.54

Note: Phihong Dongguan’s drainage coefficient is 0.9 times the water intake (based on the evaluation coefficient of the environmental impact assessment report audited by the China National Environmental Protection Agency). The drainage coefficient for Phihong Taiwan is also 0.9 times the water intake. Phihong Haiphong’s drainage coefficient is 0.8 times the water intake (based on local municipal sewage charging standards).

Waste management

The waste generated during operations includes two major categories: “domestic waste” and “industrial waste.” Efforts are made across all factory areas to promote the concept of “resource recycling and waste reduction” from within the organization, aiming to implement waste reduction actions involving all employees. Additionally, every year, the company undergoes ISO 14001 certification verification by a third-party auditing organization (LRQA), conducts regular reviews, and publicly discloses environmental performance results.

Waste classification and statistical table

Type of waste (tons)	2021			2022			2023
Type of waste (tons)	Taiwan	Dong guan	Hai phong	Taiwan	Dong guan	Hai phong	Linkou HQ	Zerova	Dong guan	Hai phong
Domestic Waste	20.27	345.60	18.72	26.49	410.04	311.42	9.28	13.96	200.82	47.98
General Utility Waste	6.04	738.41	70.29	25.31	788.34	421.5	0.72	48.25	571.55	456.9
Hazardous waste	0.00	265.28	88.82	-	322.74	150.59	-	-	124.01	98.13
Total weight (tons)	26.30	1,349.29	89.01	51.8	1521.12	883.52	10	62.21	896.38	603.01
Intensity (total weight / number of people)	0.06	1.36	0.43	0.1	0.40	0.60	0.02	0.2	0.37	0.46
Per capita output of domestic waste	0.05	0.35	0.09	0.05	0.11	0.21	0.02	0.04	0.08	0.04

Waste disposal method

Plant	General waste	Industrial waste
Plant	General waste	General industrial waste	Hazardous industrial waste
Linkou HQ	100% incineration	55% incineration 45% scrap metal recycling	-
Zerova	100% incineration	20% incinerated, 30% buried, 40% scrap metal recycling	-
Dongguan	100% incineration	100% recyle and re-use	100% harmless treatment
Haiphong	100% incineration	80% recycle, 20% incineration	100% harmless treatment

Note: Phihong adheres to local environmental regulations as follows: Taiwan: Waste Disposal Act of Taiwan; Phihong Dongguan: China’s Law on the Prevention and Control of Environmental Pollution by Solid Waste; Phihong Haiphong: Environmental Protection Law of Vietnam.

Environmental investment

In accordance with environmental accounting standards, the statistical assessment of environmental economic benefits is based on estimating the cost savings resulting from reduced energy consumption, water usage, or waste generation achieved through the implementation of environmental protection plans. Additionally, the benefits derived from the recycling and reuse of waste are also factored in.

2023 Annual environmental protection expenditure statistics table

Environmental protection cost item classification	Description	Linkou HQ	Zerova	Dongguan	Haiphong
1. Direct costs of reducing environmental load	Air pollution prevention and control costs, water pollution prevention and control costs, and other pollution prevention and control costs	-	-	28,302	742,975
(1) Pollution prevention and control costs		-	-	28,302	742,975
(2) Save resource consumption costs	The cost of saving resources (such as water and electricity resources)	8,400,000	-	-	-
(3) Industrial waste and general office waste treatment and recycling costs	For industrial waste treatment (sludge removal freight, waste solvents, waste water, general garbage processing) fees	390,864	826,886	981,675	640,339
2. Reduce indirect costs of environmental load (environmental protection related management costs)	Environmental protection education expenditures	-	-	385,075	36,025
	Environmental management system and certification acquisition fees	-	109,500	-	24,845
	Monitoring environmental load costs	19,000	27,000	589,890	236,000
	Personnel expenses related to environmental protection organizations	-	-	-	-
	Increased costs for purchasing environmentally friendly products	-	-	-	1,154.66
Other environmental protection related costs	Soil remediation and natural environment restoration costs	-	-	-	-
	Environmental pollution damage insurance premiums and government-imposed environmental taxes and fees, etc.	-	-	-	-
	Environmental problem settlement, compensation, fines, and litigation costs	6,000	-	-	-
Total		8,815,864	1,072,886	1,984,942	1,795,650

2023 Environmental protection benefit statistics table
Item	Description	Linkou HQ	Zerova	Dongguan	Haiphong
Industrial waste recycling (NTD)	Such as electronic parts scraps and scrap computers	-	240,210	9,369,002	1,208,717