Environmental Protection
Phihong deeply recognizes the importance of Earth's resources and sustainable development. The company actively promotes environmental management systems and aligns with global carbon reduction trends. Using 2021 as the baseline year, Phihong aims to achieve a 42% reduction in carbon emissions (Scope 1+2) by 2030, working toward net-zero emissions by 2050.
Water Stewardship, Waste Management
Water Resource Risk and Wastewater Management
Phihong’s manufacturing processes primarily focus on product assembly, which do not involve water usage and do not generate process wastewater. Although operational water demand is relatively low, the company still follows a risk-oriented management principle, establishing a water resources risk assessment and management mechanism to enhance operational resilience and fulfill its Environmental Sustainability responsibility. The Group’s plants source their water entirely from tap water and utilize the Aqueduct Water Risk Assessment tool from the World Resources Institute (WRI) for water stress analysis. The assessment results show that Taiwan and the Haiphong Facility are low-to-medium risk areas, while the Dongguan Facilities are low-risk areas. Overall, the Group’s operational sites are not located in high water stress regions,water resources supply is stable, and operational risks can be effectively controlled.
The primary source of wastewater is the domestic use by employees. Each plant is equipped with monitoring equipment to ensure proper treatment and discharge in accordance with local regulations and park standards. In 2025, there were no violations of wastewater discharge regulations or penalties, demonstrating that the water stewardship system is operating effectively and has not caused significant environmental impact.
The Group primarily uses water for everyday living. Through annual water-saving targets and improvement programs, it continuously reduces water consumption and resource waste. Key measures include:
Phihong continuously promotes environmental awareness and education and training to strengthen employees’ understanding of environmental policies and resource sustainability, working together to implement sustainable actions. In terms of waste management, source reduction and classification management are implemented, reducing waste generation comprehensively from product design to manufacturing processes. At the same time, through various improvement implementation projects, the ratio of non-recyclable waste is continuously reduced, mitigating environmental impact.
Additionally, each year a professional third-party organization is commissioned to conduct audits and review targets to ensure compliance with regulatory requirements and continuously improve environmental management performance.
In 2025, the majority of waste was Non-hazardous waste that could be recycled and reused,accounting for 61.29%. This was followed by Non-hazardous waste without energy recovery through Incineration, accounting for 25.61%. Hazardous Waste constituted 13.10% of the total, of which 50.15% was recycled and reused.
Phihong actively promotes green manufacturing in response to global carbon reduction and net zero initiatives. Committed to sustainable resource management, the Company aims to establish “zero waste” facilities, with “zero landfill” as a key development direction.
Starting from 2022, Phihong initiated its zero waste landfill program at Phihong (Dongguan) and completed a preliminary review in the same year. This initiative prompted a comprehensive review of the entire production process, including raw material selection, product design, and waste minimization strategies, and fully integrated circular economy principles. The project adheres to the UL 2799 Environmental Claim Validation Procedure (ECVP) for Zero Waste to Landfill verification, ensuring that all waste streams are managed in compliance with relevant regulations and are directed toward recycling, reuse, or energy recovery instead of landfilling. Certification is awarded when the waste diversion rate reaches 80% or higher. Hence, Phihong has made waste reduction a top priority. The effectiveness of achieving zero landfill is assessed in accordance with the UL 2799 standard across several dimensions, including:
Through ongoing improvement efforts, the Group’s Dongguan plant once again achieved a 100% waste diversion rate in 2025, including 9% recovered through thermal energy incineration. The site has maintained Platinum-Level certification under the UL 2799 Zero Waste to Landfill program. At the same time, Phihong expanded the certification scope to its Haiphong facility in Vietnam, which has passed UL 2799 verification for two consecutive years. In March 2025, it achieved a 91% waste diversion rate with 0% waste-to-energy through incineration and received Silver-Level certification, demonstrating Phihong’s firm commitment to moving toward zero waste production and actively contributing to the United Nations Sustainable Development Goals (SDGs).
Phihong has established a systematic environmental investment evaluation mechanism, with annual reviews.
Investment in energy saving and carbon reduction is allocated precisely based on evaluation results to continuously reduce the impact of operations on climate change. Through comprehensive environmental monitoring and data management, the current environmental status is dynamically tracked. Combined with environmental Impact Assessments and analysis, decision-making quality and management efficiency
are enhanced. At the same time, the economic benefits of Recycling and reuse are included, fully presenting the achievements of environmental investment and value creation
