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Raw Materials and Chemical Management

SUPPLY SITUATION OF KEY RAW MATERIALS

The Company and its local suppliers have maintained a relationship with stable growth and good close cooperation for a long time. From the selection of chemical synthesis raw materials to the discharge of dyeing and finishing wastewater, we fully comply with ZDHC MRSL specifications.

THE PROCUREMENT PROPORTIONS OF KEY RAW MATERIALS
IN 2023 ARE AS FOLLOWS

Polyester

Proportion 46.7%

PP

Proportion 37.1%

Nylon

Proportion 15.6%

Natural Material

Proportion <0.6%

RELATIONSHIPS AMONG THE UPSTREAM, MIDSTREAM,
AND DOWNSTREAM SECTORS OF THE INDUSTRY.

CHEMICAL MANAGEMENT

ZDHC is an organization dedicated to promoting zero discharge of hazardous chemical in textile, leather, and footwear industries.

Taiwan Paiho joined the ZDHC Roadmap to Zero program in March 2021. Through the ZDHC Gateway system, a monthly InCheck report is published, which includes: a list and quantities of chemicals used by Taiwan Paiho each month, the number and proportion of chemicals compliant with ZDHC standards, and their alignment with the ZDHC MRSL.

In alignment with ZDHC's chemical inventory management and analysis of chemicals using the BVE3 (BV Environmental Emission Evaluator), Taiwan Paiho has been progressively optimizing its chemical selection. Since 2021, over 80% of the chemicals used have achieved ZDHC Level 3 compliance.


CHEMICAL PHASE-OUT MANAGEMENT

Since 2015, Taiwan Paiho has been implementing the 'PFC Free' policy, in collaboration with international brand clients, to eliminate perfluorinated compounds from products. Starting in 2020, Taiwan Paiho also began following the 12 harmful volatile chemicals banned by adidas SEA (Social & Environmental Affairs Environment Department) for maintaining a safe working environment. These 12 chemicals were incorporated into Taiwan Paiho's control and phase-out management from the same year.

RESTRICTED CHEMICAL CAS No. RESTRICTED CHEMICAL CAS No.
Benzene 71-43-2 N-Dimethylformamide 68-12-2
Toluene  108-88-31 Phenol 108-95-2
Methylene Chloride 75-09-2 Cellosolve 110-80-5
Trichloroethylene 79-01-6 Methyl Cellosolve 111-15-9
Perchloroethylene 127-18-4 Methyl Cellosolve Acetate 109-86-4
Carbon Tetrachloride 56-23-5 Cellosolve Acetate 110-49-6

WASTEWATER MANAGEMENT

Taiwan Paiho follows the ZDHC Roadmap to Zero Wastewater Guideline, with sampling and testing conducted by a third-party accredited entity every six months. The results are uploaded to the ZDHC ClearStream wastewater report and published on the ZDHC Gateway platform. Taiwan Paiho meets the ZDHC discharge limits and has achieved High Level Performance.