How Do We Achieve Excellence in Quality and Operational Efficiency?

    In response to global sustainability policies, Chung Hwa Pulp has proactively implemented a wide range of cleaner production initiatives and continuous improvement programs. We are committed to enhancing the efficiency of water, air, and energy resource use. In parallel, we have obtained various management system certifications to support continuous improvement and risk management across our operations, covering quality, environment, energy, occupational safety, and raw material traceability. Through these integrated management practices, we sustain operational growth while strengthening long-term resilience.


    Greenhouse Gas Management

    By the end of 2025, the parent company of CHP, passed the validation of its near-term science-based carbon reduction targets by the Science Based Targets initiative (SBTi). Compared to the base year (2022), Scope 1 and Scope 2 emissions must be reduced by 42%, and Scope 3 emissions by 25% by 2030. CHP has established a Greenhouse Gas Reduction Task Force to conduct inventories of greenhouse gas emission sources within its mills and formulate various reduction measures. The inventory results are registered on the national greenhouse gas registry platform and disclosed in the company's sustainability report. In 2025, CHP's parent company recorded a total emission volume of 703,585 metric tons of CO2e, representing a 10.90% reduction compared to the 2022 base year and successfully achieving its 2025 target.


     Sustainability Roadmap


      Scope 3 Greenhouse Gas Inventory
      In 2025, the company's total Scope 3 greenhouse gas (GHG) emissions reached 919,062.30 metric tons of CO₂e, covering the head office operations in Taiwan. The breakdown by emission category is summarized in the table below.Based on this year's Scope 3 inventory, emissions were heavily concentrated in the following key categories:
      Category 1 (Purchased Goods and Services): The primary emission source, accounting for 734,836.80 metric tons of CO₂e 79.96% of total Scope 3 emissions).

      Category 3 (Fuel- and Energy-Related Activities): The second-largest contributor, totaling 87,702.45 metric tons of CO₂e (~9.54%).

      Category 4 (Upstream Transportation and Distribution): The third-largest source, generating 67,505.80 metric tons of CO₂e (~7.35%).


        Together, these top three categories account for approximately 96.84% of total Scope 3 emissions, forming the core focus of the company's Scope 3 footprint.To address these major emission drivers, priority management measures will be implemented moving forward. Key initiatives include strengthening vendor carbon data collection and management, enhancing supply chain carbon management capabilities, and promoting low-carbon procurement and logistics to systematically improve the completeness and effectiveness of Scope 3 emission controls.


         

        Water Resource Management

        Due to water scarcity in Taiwan, CHP has set an an nual water withdrawal target of <30,000 million liters, and the total water withdrawal in 2025 was 29,582 million liters. We use the process water recycling rate as our core indicator. In 2025, the water recycling rate of CHP's paper mills was 86.5%. The short-, medium-, and long-term targets for the water recycling rateNote1 are 90% by 2030, 93% by 2040, and 95% by 2050, en suring the sustainability of water resources


        Air Quality

        Continuous Monitoring and Ongoing Odor Mitigation

        Chung Hwa Pulp’s air quality management complies fully with regulatory requirements while continuously evaluating and upgrading pollution control technologies. The Company does not emit hazardous air pollutants. In recent years, aging equipment has been replaced, contributing not only to carbon reduction but also to improved air quality.  In addition to helping achieve carbon reduction targets, total emissions of NOx, SO2, and VOCs all showed a decreasing trend in 2025 compared to the 2022 base year, with reductions of 22%, 26%, and 73%, respectively.

        *Source: Cumulative values based on real-time monitoring from in-mill flow meters.


        In addition, Chung Hwa Pulp’s Hualien Mill has received guidance from the county government to install perimeter hydrogen sulfide (H₂S) detectors and implement intelligent inspection systems. We have also invited domestic experts and scholars specializing in air pollution control to conduct on-site assessments, identify odor sources within production processes, and propose effective mitigation strategies to address odor-related concerns.

        Resource Recycling and Reuse

        Process residues from CHP  consist mostly of fibrous material and are classified as non-hazardous waste. Based on disposal methods, they are divided into three categories: "Resource Recovery & Reuse," "Incineration with Energy Recovery," and "Incineration without Energy Recovery." The company prioritizes on-site resource recovery and waste-to-energy conversion, with the combined rate of resource recovery and incineration with energy recovery reaching 99%. For instance, combustible high-calorific residues are repurposed as alternative fuels; sludge resource recovery includes composting and conversion into innovative products; and a portion of off-site process residues is converted into raw materials for cement manufacturing. To ensure effective tracking of waste streams and guarantee that all waste is legally and properly disposed of or reused, CHP carefully selects waste clearance, treatment, and recycling contractors, while continuously enhancing audit performance for ongoing tracking and management.


          Today’s Waste Is Tomorrow’s Treasure

          We continuously seek new ways to maximize resource circulation and extend the number of reuse cycles.

          Wood sourced from forests is a vital natural resource upon which Chung Hwa Pulp depends. By extending the life cycle of trees and supporting sustainable forest management, we can ensure long-term, stable resource supply. Most by-products generated during paper manufacturing can be recycled and reused. Organic-rich residues, which account for the largest proportion, are returned to the land to provide nutrients.

          Beyond this, we actively apply innovative technologies and recycling approaches to give waste materials new value and renewed life.

             

              Natural compost

               

               Building materials

               

               Cement products

               

              RDF fuel

              We are committed to continuously extending the life cycle of paper by building a circular supply chain, making our paper products more environmentally sustainable.