Having established a long-standing operational system entailing research and development (R&D), production, marketing, and service based on coal chemical, we at CSCC are also actively moving into the area of carbon materials. Specifically, mesophase graphites are used as anode materials for power batteries in electric cars, electric buses, electric scooters, consumer electronics, and storage systems, while advanced carbon materials can be applied to supercapacitors for wind power generation and light rail vehicles and lead-acid batteries for start-stop systems in vehicles. Both types of carbon materials are green products that serve as key green materials for a low-carbon environment.

Our sustainable development performance in 2022 is detailed as follows:

Economic aspect

CSCC's consolidated operating revenue of NT$10.460 billion and net income before tax of NT$2.078 billion in 2022 increased by 31% and 58%, respectively, compared to 2021. The operating revenue reached a record high, with the best profits generated in recent years. However, the economic development is still under great challenge due to uncertain global economic outlook, restructuring of supply chain and de-stocking, uncertain benefits arising from China's economy after the easing of the pandemic restrictions, continuously intense political and economic situation, the end of the era of negative interest rates, and the beginning of the era of high interest rates. In addition, due to the extreme climate impact caused by climate change, the demand for electric vehicles and energy storage industry is increasing. CSCC will continue to promote the expansion and development plan of carbon material products to become an important supplier of battery anode materials, continue to promote energy conservation and carbon reduction, and achieve the short-, medium- and long-term goals of ESG.

Corporate governance

In order to improve corporate governance and sustainable development, CSCC has completed the TCFD risk/opportunity matrix and continues to collect quantitative financial data based on the assessment to further analyze the impact of each risk/opportunity on CSCC's operations. After introducing the Taiwan Intellectual Property Management System (TIPS) in 2020, we have been awarded Level A certification for patents, trademarks and trade secrets in 2022 to reinforce our intellectual property management.

Environmental aspect

In addition to cumulative average annual electricity saving rate from 2015 to 2022 of over 1.63%, the cumulative average reduction in water and wastewater intensity amounted to 6.1% and 7.0%, respectively. In June 2022, we obtained the greenhouse gas inventory statement for the year 2021, and completed the carbon footprint inventory for 16 major products.

Social aspect

We continue to implement the project to assist Jin-Jhu Elementary School in the rural area of Neimen District, Kaohsiung City, and hold an average of four local neighborhood group activities, community associations, and environmental promotion activities each month.

Looking ahead, we will keep striving for a friendly environment, engaging in innovation, and fulfilling social responsibilities on top of the foundation we have built while maintaining good interaction and communication with various stakeholders. With the issuance of this Report, we endeavor to examine our action strategies and related performance, and make timely revisions to our short-, medium-, and long-term sustainable development strategies while forging progress at all times, so that we can become an excellent enterprise that cares for the Earth and realizes sustainable development.