Oneness Biotech recognizes the enormous impact of climate change on the economy, society, and the environment. As one of the leading biotech pharmaceutical companies in Taiwan, we must heed our corporate social responsibility and respond to the challenges brought forth by climate change. In 2023, the Oneness Biotech Risk Management Committee identified climate change as one of the potential risks. To measure and analyze the impact of climate-related risks and to formulate control measures, we adopted the framework from the Task Force on Climate-related Financial Disclosure (TCFD) issued by the Financial Stability Board (FSB). Based on the framework, we disclosed our governance, strategies, risk management and metrics, and targets to help investors and stakeholders understand Oneness Biotech’s climate actions.
Governance
Based on the results of our risk assessment and materiality analysis, the Company identifies climate change as one of its principal risks. To address the potential risks and opportunities posed by climate change to our operation, we have clearly defined the roles and responsibilities of the Board of Directors and executive management in accordance with our sustainability governance framework and aligned with the climate governance requirements of the IFRS S2 and TCFD frameworks. Climate-related risks and sustainability considerations are integrated into the Company’s decision-making processes, including strategy oversight, material transaction deliberations, and risk management practices.
The ESG Committee reported the progress and result of sustainable development and risk management to the Board of Directors on February 29, July 9, and November 11, 2024. The Board of Directors supervised the progress of the implementation of sustainable development matters, including GHG inventory and the verification program.
Strategy
To strengthen the Company’s climate resilience, we systematically identify climate-related risks and opportunities and assess their potential impacts on our operations and value chain. Based on these assessments, we formulate medium- to long-term action strategies and transition pathways to ensure business stability and the realization of sustainable value.
The Company reviews domestic and international climate-related issues and industry development trends to identify potential risks - including physical and transition risks- and opportunities. Through a series of workshops involving dedicated personnel and senior management from various departments, and in close collaboration with external third-party experts, we conducted in-depth discussions. Reasonable and verifiable data were used—such as participants’ academic and industry experience, historical incidents, and forward-looking projections—to assess both the severity of impact and the urgency of potential risk events. As a result, the Company has identified the following significant climate-related risks and opportunities: extreme weather events, the ability to attract sustainable investment, and national net-zero policies.
Climate Risk and Opportunity Matrix
Description of Significant Climate Risks and Opportunities
Climate Response Strategies
Based on the identification of significant climate-related risks and opportunities, the Company has formulated corresponding response strategies. Through ongoing review and dynamic adjustments, we allocate appropriate resources to enhance the Company’s climate resilience.
Risk Management
In order to enhance the Company’s corporate governance, establish an effective risk management mechanism, assess and supervise the risk-taking ability and the current risk management situation, the Oneness Biotech Board of Directors approved the “Risk Management Policies and Procedures” in 2020 as the Company’s highest guiding principle of risk management. Through the policies and procedures, the Company integrates and manages various potential strategic, operational, financial and hazardous (climate change, legal compliance, market competition) risks that may affect operations and profitability, carries out risk warnings and takes appropriate preventive measures, or maintains operational activities in the event of an accident.
The responsible unit identifies relevant risk factors, analyzes the potential impact of each risk on the Company’s operations, and develops and adopts measures to control risks within the Company’s acceptable range. The Risk Management Committee receives regular reports from the Risk Management Task Force and supervises the status of risk management execution by the Company and its important subsidiaries. At the meeting of the Risk Management Committee in 2024, the risks related to extreme climate were monitored with relevant countermeasures formulated, including, raw material inventories and future production capacity responses.
Metrics and Targets
Risk Control Metrics
Based on the major climate risks identified in 2024, the Company has set relevant indicators to ensure that the risk impact is controlled within an acceptable range.
Climate Change Mitigation Goals
In alignment with the government’s net-zero targets, Oneness Biotech completed the Group’s greenhouse gas (GHG) inventory in 2021 and voluntarily launched proactive carbon reduction initiatives. Building upon these efforts, we have established an ambitious emissions reduction target. Due to the relocation of our headquarters and updates to Global Warming Potential (GWP) values in 2024, the Company has designated 2024 as the new base year for carbon emissions. We aim to reduce emissions by 20% by 2030, primarily through initiatives such as energy-efficient equipment upgrades, increased use of renewable energy, and the purchase of carbon credits—progressively reducing our carbon footprint year by year.
Energy Management Plan
According to the product carbon footprint analysis of FESPIXON® Cream, electricity consumption accounts for over 65% of the total emissions, making it the largest single source. Enhancing energy efficiency through a robust energy management system is therefore essential to achieving carbon reduction goals.
- The carbon footprint of FESPIXON® Cream was assessed to identify lifecycle emission hotspots and was third-party verified by SGS Taiwan Ltd.
- A central control room has been established. The facilities team monitors electricity usage across all zones, analyzes potential energy-saving opportunities, and drives continuous improvement.
- The Nanchou Plant has adopted energy-efficient equipment, such as LED lighting, and is progressively transitioning toward the use of renewable energy sources.
The Company has introduced an Internal Carbon Pricing (ICP) mechanism with the purpose of concretizing and monetizing carbon emissions, thereby embedding them into daily operations and long-term strategic planning to accelerate our transition toward a low-carbon business model. Please refer to the relevant details for further information.
2024 Key Energy Conservation Measures
- In 2023, a 170.15 kW solar photovoltaic system and energy storage equipment were installed at the employee dormitory of the Nanchou Plant, with a total construction cost of approximately NT$23 million. The solar system supplies electricity for equipment load during daytime hours, while excess power is stored and later used to supply the dormitory at night, significantly reducing electricity consumption. In 2024, this system supplied 141,522 kWh, accounting for 79.3% of the dormitory’s electricity consumption.
- In 2024, the Company further expanded its renewable energy portfolio by investing approximately NT$20 million in a 587.86 kW rooftop solar PV system at the Nanchou Plant. The system was commissioned in March 2025 and is expected to generate approximately 660,000 kWh of renewable energy annually, covering more than 25% of the plant’s electricity needs.
- New employees are required to complete environmental management system training. Additionally, company-wide ESG training programs are conducted, and energy-saving and carbon reduction slogans are displayed throughout the plant to raise employees’ environmental awareness.
Adaptation Measures
In the face of increasing extreme weather phenomenon and events, resilience against climate disasters is an important part of business operations.
Property Insurance
- All Oneness Biotech locations are insured with the relevant insurance, and the total insurance amount exceeds NT$800 million.
Avoiding Flooding
- During the construction and planning of Nanchou Plant, the height of the plant was elevated by 85 cm and a comprehensive drainage system was set up to effectively reduce the impact from flooding.
- Cotton Field Organic Farm adopts drainage measures such as retarding basins and water gates to reduce the impact of floods.
Response to Supply Disruptions
- The raw materials have a safety inventory amount ranging from three months to one year according to the delivery period to ensure that the inventory can be replenished at any time, and plectranthus amboinicus is grown off-site to avoid the climate impacting a single region.
Carbon Emission Statistics
Oneness annually conducts GHG inventory in accordance with ISO 14064-1:2018 since 2021, which identified emission sources based on the operation control method. The inventory was also validated by third party for the data quality and completeness.
Rewards for Climate-related Contribution
At Oneness Biotech, we recognize that addressing relevant climate impacts and achieving the carbon reduction target set by 2025 requires the joint efforts of all employees. Therefore, in addition to the linkage between the performance of senior managers and ESG risks to a certain extent, the Company has also set reward standards in the employee reward and punishment system. Relevant rewards earned by employees are included in the performance appraisal and serve as references for promotion, salary adjustments, and bonus distribution. Examples of reward criteria are summarized below:
Carbon Removal
The Soil Organic Carbon (SOC) sequestration capacity, which represents the amount of carbon that soil can absorb annually, varies depending on climate conditions, soil physical and chemical properties, and land management practices. In a specific agricultural system, changes in land use and management practices can alter the amount of soil organic carbon sequestration. To measure the farm's carbon removal capability, Oneness Biotech commissioned National Chung Hsing University to conduct a survey of soil carbon content. The survey included sampling from both the organic farming area of the farm and neighboring conventional farming areas for comparison.
Based on the Tier 1 method described in Chapter 5 “Cropland Management” of Volume 4 of the “2019 Refinement to the 2006 IPCC Guidelines for National Greenhouse Gas Inventories”, the average annual increase/decrease in emissions for a period of 20 years of the traditional farming method before lease and the organic farming method after lease is estimated. Since March 2017, the Cotton Field Organic Farm has exclusively employed organic farming methods. The organic certification area of Cotton Field Organic Farm is 32.4679 hectares, and the annual absorption of approximately 86.953 (tCO2e).
Third Party Verification
Oneness annually conducts GHG inventory in accordance with ISO 14064-1:2018 since 2021. The boundary which includes the subsidiaries is aligned with the consolidated report, and the coverage is 100%. The inventory was also validated by 3rd party for the data quality and completeness.
※The above content is taken from the ESG Report
