Circular Economy and Resource Management
Circular Economy
Achieve zero Waste to Landfill for industrial waste by 2029.
Increase the proportion of waste recovered for beneficial use and reduce waste sent for final disposal in accordance with the 4Rs (Reduce, Reuse, Recycle, and Repurpose) and circular economy principles.
Resource Management
Improve the efficiency of key raw material utilization, including Base Oil, Additives, and processing materials.
Reduce raw material losses throughout operational processes, including storage, blending, transfer, and packaging.
Optimize inventory levels of key raw materials and processing materials to maintain product quality, ensure production continuity, control costs, and promote efficient and sustainable resource utilization over the long term.
Circular Economy
In 2025, total waste generated amounted to 894 tonnes, down from 952 tonnes in 2024, representing a decrease of 6.09%. This comprised 554 tonnes of hazardous industrial waste, 232 tonnes of non-hazardous industrial waste, and 108 tonnes of general waste.
75.73% of total waste was recovered for beneficial use.
100% of non-hazardous industrial waste was recovered for beneficial use.
Waste not yet recovered for beneficial use accounted for 24.27%. The Company is currently exploring approaches to increase the proportion of waste recovered for beneficial use in the future.
Employee waste segregation accuracy was assessed at 85%, while waste segregation quality inspection results reached 87%, and employee awareness was assessed at 80%.
Resource efficiency initiatives helped reduce resource consumption by approximately 5%.
Office paper consumption decreased by approximately 30% compared with the 2023 baseline.
The implementation of the First-In, First-Out (FIFO) method for raw material management helped reduce waste from materials approaching their expiry dates by approximately 20%.
Extending the useful life and reusing lubricants helped reduce purchases of new lubricants by approximately 15%.
Wooden pallets were reused to reduce the consumption of new resources and minimize waste generated from operations.
CCleaning Solvent was recovered and reused for equipment cleaning, accounting for 30%, and helped reduce purchases of new cleaning chemicals by approximately 20%.
Waste plastic was upcycled into office furniture, while the “Recycle Waste Bank” project was implemented in collaboration with local schools and municipalities.
At least 60% of all employees received training and participated in waste segregation awareness campaigns.
Resource Management
Plan the utilization and procurement of key raw materials and processing materials in alignment with production plans and optimal inventory levels to ensure production continuity and control costs.
Systematically manage key raw materials and processing materials by controlling each material category according to its intended use and quality requirements to maintain product quality and standards.
Manage warehousing and inventory turnover by storing raw materials according to their characteristics and issuing them on a First-In, First-Out (FIFO) basis to minimize losses from storage and materials approaching their expiry dates.
Analyze procurement data, inventory levels, actual consumption, and raw material losses to support planning, control costs, and improve resource efficiency.
Integrate raw material management with waste reduction and circular economy principles by promoting efficient resource utilization and considering the use of reusable or recyclable materials and packaging.
Challenges and Opportunities
Circular Economy
A key challenge is that part of the waste is still dependent on end-of-pipe disposal methods. In 2025, approximately 24.27% of waste was not recovered for reuse. Most hazardous and non-hazardous industrial waste is disposed of through incineration without energy recovery, while general waste is still disposed of by landfilling, which has increased from 70 tons in 2023 to 90 tons in 2025. Achieving the target of zero industrial waste to landfill by 2029 therefore requires a significant reduction in reliance on end-of-pipe disposal methods.
In addition, hazardous industrial waste remains at a relatively high and stable level (232 tons in 2025), requiring specific regulatory handling and high management costs. The Company also needs to oversee transporters, treatment providers, and waste disposal contractors to ensure full compliance with applicable laws and standards throughout the entire process, representing a key risk management challenge across the waste management value chain. Furthermore, there is a need to further develop waste and scrap data systems to ensure completeness, accuracy, and auditability in order to support trend analysis, performance reporting, and compliance with potentially evolving regulatory requirements.
In terms of opportunities, waste management based on the 4Rs principles (Reduce, Reuse, Recycle, Repurpose) and circular economy approach enables the Company to create value and reduce costs in a tangible manner. This is demonstrated through reduced resource consumption at source, extending the service life of lubricating oil which reduces new procurement by approximately 15%, reusing cleaning solvent which reduces chemical procurement by approximately 20%, and converting plastic waste into office furniture. Collectively, these initiatives reduce both waste generation and operating costs simultaneously.
In addition, the high efficiency of waste segregation (approximately 85% accuracy and 87% inspection quality, exceeding the target) provides a strong foundation for increasing waste recovery rates and reducing contamination. Expanding initiatives to the community through the “Recycle Waste Bank” project in collaboration with local schools and municipalities further strengthens stakeholder relationships and enhances the organization’s environmental responsibility image. Moreover, reducing waste generation and increasing resource recovery also contribute to lower greenhouse gas emissions from waste management activities, while laying the foundation for a transition toward a circular economy that supports long-term sustainable growth.
Resource Management
A key challenge arises from the Company’s reliance on non-renewable key raw materials, particularly base oil and additives, which are essential components of its products. The procurement of these materials requires consistent quality, reliability, and supply continuity from suppliers. As a result, the Company must closely manage risks related to price volatility, supply adequacy, and procurement continuity.
Another challenge is the control of raw material losses during operations, including deterioration, contamination, expiration, and losses during storage, blending, transfer, and filling processes. This requires systematic quality control, inventory management, and first-in, first-out (FIFO) utilization. In addition, the Company’s reliance on predominantly non-renewable materials presents a challenge in increasing the use of renewable or recycled materials in a manner that is appropriate to the business context and product quality requirements.
Importantly, the Company also faces limitations in quantitative material data management, as data on raw material and packaging consumption under the GRI 301 framework is still being developed to ensure completeness and systematic coverage. This presents a challenge for tracking trends, analyzing resource efficiency, and continuously disclosing material-related information.
In terms of opportunities, systematic raw material management across the operational value chain enables the Company to simultaneously reduce costs and improve production efficiency through accurate demand planning, optimized inventory levels, and reduced process losses. This supports cost control, product quality maintenance, and efficient resource utilization.
In addition, the systematic analysis of procurement data, inventory levels, actual usage, and losses provides opportunities to enhance business decision-making and improve resource management efficiency, while laying the foundation for material-related disclosure in accordance with international standards.
Furthermore, integrating raw material management with waste reduction and circular economy approaches, as well as considering the use of reusable or recycled-content materials and packaging, enables the Company to reduce reliance on virgin materials, minimize environmental impacts, and strengthen long-term competitiveness within a circular economy context.
Management Approach and Value Creation
Circular Economy
The Company systematically manages waste and materials with a focus on reducing waste at source, alongside improving resource efficiency, proper segregation, and waste recovery in line with circular economy principles. The Company applies the 4Rs approach—Reduce, Reuse, Recycle, and Repurpose—as a key framework to drive its waste management practices in a concrete and continuous manner.
4Rs
The Company prioritizes waste reduction at the source through process efficiency improvement, reduction of unnecessary resource consumption, and control of raw material losses in operations. Key measures include water and energy conservation projects, reduction of office paper usage, inventory and raw material management based on FIFO principles, and reduction of waste from near-expiry materials. These approaches help reduce resource consumption, lower operating costs, and minimize industrial waste requiring final disposal.
The Company promotes optimal resource utilization by reusing materials, equipment, and resources that remain in suitable condition, thereby reducing the need for new resources and minimizing waste generation. Key examples include inspecting and extending the service life of lubricating oil for reuse in appropriate operational processes, and reusing wooden pallets that are still in good condition within the organization. These practices help reduce procurement costs for new materials, decrease hazardous waste and wooden waste, and improve overall resource efficiency.
The Company emphasizes proper waste segregation at source to increase the proportion of waste that can be recycled or further utilized appropriately. This includes employee training, communication and awareness campaigns on waste segregation, and continuous verification of segregation accuracy.
In addition, the Company reuses certain oil and chemical waste streams through appropriate processes, such as using them as cleaning solvents for equipment and containers. This practice helps reduce the procurement of new chemicals, decrease the volume of hazardous waste requiring disposal, and support more efficient resource utilization.
The Company aims to add value to waste materials by transforming or repurposing them into new applications, thereby reducing the amount of waste sent to final disposal and supporting circular economy practices. Key initiatives include converting plastic waste into office furniture for internal use, as well as implementing the “Recycle Waste Bank” project in collaboration with local schools and municipalities. This initiative promotes waste segregation, reuse of recyclable materials, and environmental collaboration at the community level.
These approaches help enhance the value of waste materials, reduce the volume of waste entering final disposal systems, and extend waste management practices from the organization to the surrounding community.
To ensure the continuous effectiveness of 4Rs-based waste management, the Company emphasizes knowledge building and awareness among employees at all levels, regular communication of waste segregation practices, and continuous monitoring of waste segregation quality in both plant and office areas. The data obtained from monitoring is used to improve site-specific measures, reduce waste contamination, and enhance the overall efficiency of the Company’s waste management system.
The Company is in the process of enhancing its waste management system to be more closely aligned with circular economy principles through the development of systematic waste management processes, collaboration with external organizations, and promotion of participation from employees and communities. These efforts support the long-term goals of reducing industrial waste sent to landfill and promoting efficient resource utilization.
Resource Management
- The Company plans raw material requirements in alignment with production plans, customer demand, and appropriate inventory levels to ensure sufficient materials for operations, reduce the risk of shortages, and prevent unnecessary over-ordering.
- The Company prioritizes the management of key raw materials, including base oil and additives, as well as auxiliary materials such as solvents and chemicals used in production and cleaning processes, packaging materials, containers, caps, labels, and related consumables. Each type of material is appropriately controlled in accordance with its usage characteristics and quality requirements.
- The Company inspects raw materials prior to receipt and during storage in accordance with relevant requirements to ensure suitability for use, maintain product quality standards, and reduce the risk of using degraded or non-conforming materials. Raw materials are classified into main raw materials and auxiliary materials to ensure management is aligned with usage characteristics, product quality significance, and opportunities for loss reduction.
- The Company controls raw material storage in accordance with the characteristics of each material type, taking into account safety, contamination prevention, quality preservation, and the risk of deterioration or loss during storage. Inventory management is conducted through appropriate material rotation practices and first-in, first-out (FIFO) utilization to minimize risks associated with excess stock, near-expiry materials, and losses from prolonged storage.
- The Company emphasizes monitoring actual raw material usage at each stage of production, transfer, blending, and filling to identify loss points and define appropriate improvement measures. This helps enhance raw material efficiency, reduce process-related waste, and ensure clear identification of material consumption in production and packaging processes, covering raw materials, in-process materials, and packaging materials.
- The Company analyzes procurement data, inventory levels, actual usage, and raw material losses to support planning, decision-making, cost control, and continuous improvement in resource efficiency.
- The Company aims to integrate raw material management with production waste reduction, efficient resource utilization, and circular economy practices to support long-term sustainable growth.
- The Company supports efficient resource utilization by considering opportunities to use reusable materials or packaging, as well as materials containing recycled content, as appropriate to the nature of its business.
- The Company considers packaging materials as part of resource utilization, focusing on controlling the use of containers, caps, labels, and other packaging components to align with product requirements, while also exploring opportunities to reduce losses and increase reuse potential where appropriate.
- The Company continuously monitors and evaluates raw material management performance in order to use the results for reviewing, improving, and enhancing operational practices in alignment with production efficiency, product quality, and the organization’s sustainability objectives.
Stakeholders Directly Impacted
Circular Economy
Resource Management
