Chemical Safety Management

Material Topic #4

Impact Assessment

Category: Positive Impact
Description: We have set goals according to our Product Health Index to facilitate robust chemical safety management and effect positive impact

Implementing Robust Chemical Safety Management and Fulfilling Product Responsibility
The Company places great emphasis on chemical safety management. Besides strengthening management mechanisms and facilitation measures for process safety, we have also established a Product Responsibility Division that oversees product-related compliance management and ensures compliant labeling for all products. We set goals according to our internal Product Health Index and have obtained international certifications required by our clients from industries at the downstream of the supply chain. Recognizing chemical safety management is a key element of corporate sustainability, we implement the following safety management measures:

Management Approach

1.Implement Protocols for Hazardous Substance Process Management (HSPM)

To ensure the health and safety of users of our chemical products, and to reduce the impact of such chemicals on human health or the environment, Everlight Chemical has adopted the following measures:

Everlight Chemical adheres to the IECQ QC080000 HSPM system for hazardous substance process management, which covers the operations of the entire Group.

Protocols for Hazardous Substance Process Management

Hazardous substance management must stay up-to-date and comply with requirements from the latest Manufacturing Restricted Substance List (MRSL) and Product Restricted Substance List (PRSL) provided by brand owners. At Everlight Chemical, we keep timely inventories and updates and implement robust control, from product planning and R&D to mass production and day-to-day production. Starting from the R&D phase, we implement procedures to identify harmful chemical substances. We also strive to ensure green supply chain management and procurement of compliant raw materials, investing in high-precision analysis equipment to establish strong capabilities in quality inspection for harmful chemical substances and produce hazardous-substance-free (HSF) products, meeting regulatory and customer requirements.

In 2015, Everlight Chemical became a Bluesign® System Partner and qualified API supplier. The Company also became a ZDHC associated member the same year, which makes Everlight Chemical one of the first dyestuff manufacturers to become a ZDHC member in Taiwan. The Company has made the commitment that all its products would conform to the ZDHC Manufacturing Restricted Substances List (ZDHC MRSL) and would avoid adding hazardous substances to its products. The Company is also committed to working with supply chain partners to gradually phase out hazardous substances and to work together towards a future of zero discharge of hazardous chemicals.

Besides our commitment to not source conflict minerals, we continue to work towards the goal of 100% compliance rate across international standards and industry standards and requirements.

2022 Accomplishments
We adhere to the IECQ QC080000 HSPM system. Also, all chemical products used in the textile and leather industry are 100% compliant with the ZDHC MRSL, meeting regulatory and customer requirements.

2. Avoid Using Animal-Tested Ingredients

In accordance with international regulations and requirements, u nless requested by competent authorities, Everlight Chemical does not use any raw materials that involve animal testing, and the ingredients used in and products we offer do not contain any materials derived from the carcasses of animals or their derivatives.

3. Zero Use of Conflict Minerals

In accordance with international regulatory requirements, Everlight Chemical does not use any conflict minerals in its production process.

4.Adopt the GreenScreen List Translator™ for Effective Chemical and Product Hazard Assessment

In 2021, to further strengthen our grasp of the inherent hazards and safety of each chemical substance, we introduced the use of the GreenScreen® List Translator (GSLT) for fast and accurate chemical hazard and product safety assessment. This makes us the first company in Taiwan to introduce the globally recognized tool. In 2022, we completed GSLT screening for chemical substances and raw materials for products whose sales volume surpassed three tons during 2019-2021 across the Group (excluding pharmaceuticals). We will continue to utilize GSLT to reduce the health and environmental impacts our raw materials and products may pose, developing further measures and shift to using chemicals that are safer.
2022 Accomplishments
  1. Completed GSLT training completed for one employee in 2022 (60 training hours in total)
  2. Completed GSLT screening for 886 products whose sales volume surpassed three tons during 2019-2021 (CCBU 556, SCBU 92, ECBU 24, Toner 214)
  3. Completed GSLT assessment scoring of chemicals in 806 of the 886 screened products (CCBU 555, SCBU 57, ECBU 109, Toner 85)
  4. Completed GSLT scoring on raw materials used for chemical synthesis at our plants in 2021
  5. Nine color chemicals submitted for the third-party Screened Chemistry certification, including two chemical substances that completed verified chemical hazard assessments (vCHA) and four chemical substances currently undergoing the vCHA process

5.Provide Accurate and Compliant Safety Data Sheets (SDSs) and Labeling for Communicating Safety Information

Our SDSs and product labels are prepared according to the Registration, Evaluation, Authorisation and restriction of Chemicals (REACH) and the Classification, Labelling and Packaging (CLP) Regulations as well as the UN Globally Harmonized System of Classification and Labeling of Chemicals (GHS). We provide information in Mandarin, English, French, Spanish and Italian and also continue to add new languages. We also issue product safety and registration certificates for customers so that they can use our products without concerns.

2022 Accomplishments
  1. Completed classifying chemical products that belong to Class 1/Class 2 of the Health or Environmental Hazard Category of GHS. These products generated a revenue of NT$53.9 million, accounting for 61.22% of our consolidated revenue. The products have been 100% verified according to our hazard risk assessment requirements
  1. Issued 1,062 product safety certificates per client request (vs. 2021: 1,313; 2020: 1,214) with zero product safety complaints filed in 2022

6.Product Health Index: Meeting International Standards and Moving towards 100% Compliance Rate

Besides maintaining proper chemical safety management, Everlight Chemical actively seeks third-party certification for greater product safety assurance, providing global brands with safe chemical products without hazardous substances.

2022 Accomplishments
1.Percentage of Products Verified by Internal Assessment on Compliance:
Applicable to All Products: RoHS Directive 100% / WEEE Directive 100% / SVHCs 99% Applicable to Textile, Leather & Dyestuff Products: REACH Annex XVII 100% / Standard 100 by OEKO-TEX >98%
2.Number of Products with Third-Party or Brand Owner Certification (As of 2022/12/31)
Global Organic Textile Standard (GOTS): 218 products
Bluesign® Label: 429 products
ZDHC MRSL: 802 products
Inditex The List IV.1: 686 products
Our Commitments
Zero use of conflict minerals
Zero use of conflict minerals Unless requested by competent authorities, we do not engage in any product testing that conducts experiments on animals, and the ingredients used in and products we offer do not contain any materials derived from the carcasses of animals or their derivatives
Work towards 100% compliance rate with international standards and industry requirements for all products
Work with supply chain partners to achieve a future of zero discharge of hazardous chemicals
Targets and Metrics
  • Completion of establishing our process safety management (PSM) system in 2022 (Target achieved)
  • 56% of revenue to be generated from sustainable products (Target achieved)
Tracking the Effectiveness of Actions Taken
  • We have included (1) the share of revenue from sustainable products and (2) progress on implementing PSM systems as key performance indicators and regularly report on related progress to the management team.
  • Work environment monitoring: we regularly conduct inspections in compliance with government regulations on work environment monitoring. The results of all inspections met the legally permitted standards.
Stakeholder Engagement
We regularly disclose the share of revenue generated by sustainable products in our sustainability reports and company website.