Message from the Chairman
Since its establishment in 1995, Formosa Laboratories has focused on process development, gradually becoming an internationally recognized manufacturer of Active Pharmaceutical Ingredients (APIs). The company now leads the global market with 30 generic drug products and has expanded into biopharmaceuticals, injectable formulations, and a Contract Development and Manufacturing Organization (CDMO). It demonstrates a strong commitment to quality, innovation, and sustainable practices.
With our steadfast commitment to quality, we not only play a vital role in the global supply chain; we also actively address issues such as energy conservation, carbon reduction, and employment rights. In 2023, the company began using solar- generated green electricity and completed the first phase of its solar energy installation. The second phase is scheduled for completion in 2024. Formosa Laboratories also continues to pass ISO 14064-1 and ISO 14067 certifications, collaborates with the Industrial Technology Research Institute (ITRI) on carbon footprint calculations, and aims to implement energy-saving, water-reduction, and wastewater treatment measures by 2025. Additionally, the Company demonstrates its corporate social responsibility through community activities such as beach cleanups.
The Company has partnered with a human resource consulting firm to improve its compensation and job grading systems. We currently have nearly one hundred foreign employees on staff, and we continue to recruit senior international talent. Through industry- academia collaboration programs, graduate recruitment, initiatives, and scholarships, the Company enhances its research and development capabilities, as well as its quality standards. The Board of Directors actively participates in decision-making within the ESG Team and demonstrates a commitment to gender equality and cultural diversity.
Facing growth in the new drug market, Formosa Laboratories' CDMO and injection plant are about to enter the harvest phase. The Company established a presence in Chicago and acquired a U.S. firm to expand its influence across North America, while also incorporating Al in various administrative and R&D tasks to boost efficiency and competitiveness.
During the pandemic, Formosa Laboratories demonstrated its vital role by producing respiratory medications, showcasing its excellent manufacturing efficiency and rapid response capabilities. In recent years, the company has actively adopted precision medicine by investing in related R&D fields to grow its product and technology offerings. In the future, we will continue to promote energy conservation and carbon reduction, enhance talent development, and accelerate international expansion. With innovation and sustainability at its core, the Company aims to build a better future alongside its global customers and partners.
This 2024 Sustainability Report is the first report issued by Formosa Laboratories in response to the concerns of stakeholders regarding the sustainable development of the Company. In addition to following the latest version of the Global Reporting Initiatives (GRI) guidelines for reporting on sustainability content, we also appoint a third-party verification organization (SGS) to obtain AA1000 Type 1 moderate assurance to enhance the completeness and credibility of the report.
Formosa Laboratories has made sustainable development a company goal and incorporated into KPI in order to continue implementing energy conservation and carbon reduction, fulfilling corporate social responsibility, and strengthening corporate governance. In addition, the Company established a Sustainable Development Committee in May 2024, with myself as the convener of the committee, and the CEO as the advisory committee member, and the Vice President of the Engineering Department as the director committee member. The committee is divided into three executive teams: Sustainable Development Team, Social Welfare Team, and Corporate Governance Team.
In terms of environmental aspects, the Company has established a high-performance wastewater treatment plant and a Regenerative Thermal Oxidizer (RTO) based on the characteristics of the industry and the operational needs of the Company, improving the efficiency of VOCs (Volatile Organic Compounds) waste gas treatment to over 95%. A complete environmental management system has been established, continuously passing verifications such as ISO 14001, CNS 15506, and OHSAS 18001. Since 2018, the boiler fuel has been changed from heavy oil to natural gas to reduce emissions of SOx and NOx. In 2019, an energy-saving and carbon reduction plan was launched, including (1) rezone and utilize the entire plant's lighting, (2) replace traditional lighting fixtures with LED fixtures, (3) replace old chillers in the plant to improve equipment efficiency, (4) replace inverter air conditioners, (5) install inverter drives on the aeration tank blowers, and (6) implement energy-saving measures in cleanrooms: construction of solar power panels has begun in 2024 and is expected to be completed and operational by mid-2023.
Moreover, the waste reduction and recycling rate has reached 40.98% in 2024. After recycling and treating the process water in 2024, the reuse amount reaches 115,014 tons per year, accounting for 26.01% of the total annual water consumption.
As for social aspects
during the early stages of the COVID-19 outbreak, Formosa Laboratories immediately distributed 75% of the rubbing alcohol for pandemic prevention to community offices, public welfare organizations, or schools in the neighborhood, totaling more than 2,800 liters. Since the outbreak of COVID-19 in the country, all employees of the Company have cooperated with various pandemic prevention measures, and so far, there have been no major injuries or interruptions in operation and production due to the pandemic. To strengthen early warning and health risk management capabilities, promote a culture of exercise among employees, organize club activities, conduct annual physical examination for employees, and provide incentives for receiving COVID-19 vaccinations. Formosa Laboratories also complies with the "Labor Standards Act" and other relevant labor laws, and has formulated the "Measures for Preventing Workplace Unlawful Infringement" to protect the labor rights, workplace safety, and job rights of employees, setting up female lactation rooms and unisex public toilet, providing a safe and secure workplace environment for employees.
In terms of human resource utilization or employment conditions, compensation, benefits, training, performance evaluation, and promotion opportunities, the Company handles them with an attitude of equality and fairness. Currently, female employees account for 28.5% of the total workforce Formosa Laboratories, and among the 16 senior managers at or above the first level, 6 are women, accounting for 37.5%. In addition, the Company has always been enthusiastic about participating in public welfare activities, such as sponsoring activities in neighboring countries, organizing two blood donation events every year, holding charity sales and donating all proceeds to public welfare organizations, mobilizing employees for beach cleaning activities, actively participating in river conservation and maintenance, and receiving the "River Adoption Excellence Award" from the Taoyuan City Government.
Regarding corporate governance, the Company complies with relevant laws and regulations of the competent authorities to carry out major information disclosure and various information reporting operations. In May 2024, a corporate governance director was appointed to provide assistance required for the Director of the Board's executive business, specifically enhancing the efficiency of the Board of Directors' operations.
Furthermore, we integrated the departments' current risk management methods to create the "Risk Management Policy and Procedures", which aim to evaluate alterations in multiple environmental risks, pinpoint potential hazards for the Company, devise plans to enhance risk management, and periodically review execution. The awareness of risks will be integrated into the Company's operations, and a business continuity plan (BCP) will be developed based on the risk level for the Company's continuous operation.
Looking ahead
Formosa Laboratories' pursuit is not only for the profitability of its core business, but also to meet the expectations of its shareholders. Moreover, we expect to be a part of global citizens. In addition to continuously enhancing corporate governance, we also increase investment in social and environmental aspects, such as talent cultivation and energy conservation. Formosa Laboratories aims to enhance the sustainable power that drives society forward through the disclosure of various information in its sustainability report, and become a corporate citizen with social influence, creating a better future for the next generation.
