Sustainable Products and Development

Circular Economy Sustainable Products and Development Product Responsibility and Customer Service

Sustainable Products and Development

● Strategy: Adhering to the 3Rs: Reduce, Reuse, Recycle, and develop a variety of green and low-carbon products and services with a recycling business model of resource regeneration, and expand the full circular economy.

● Goals of 2030: Recovered paper utilization rate > 97% *Industrial paper;
Exert creativity capability to develop niche products

Sustainable Products and Development

Indispensable to food, clothing, housing, and transportation, paper is part of the daily life. We make paper with recovered paper or FSC fibers to facilitate recycling and natural decomposition after use in order to lower environmental impact. Due to the characteristic of recycling and circulation, paper have been widely used by all industries, and the customers and the clients of the packaging emphasized more on the environmental sustainability. And the paper products become the preferred selection of the packaging and transportation materials.

As a leading paper company, we are committed to developing a sustainable business model for the circular economy and focus on developing eco-friendly, sustainable products and services at each stage, covering materials purchase; product design, production, and consumption; and disposal after use to reduce resource consumption. We also maintain continual process improvement and use intelligent equipment, increase recovered paper uses, improve product quality, and enhance carbon reduction efficiency. In 2023, CLC Taiwan recycled a total of 1.628 million Mt of waste paper, an increase of 56,000 Mt from the previous year. The utilization rate of recovered paper increased by 2.4%, reaching 94.9%. The utilization rate of recovered paper for industrial paper remained at 97.5%. The recycling rates for all types of paper and industrial paper met the established targets.

Less is More! CLC Maximized Value at the Least Resources with Low-Carbon Products

In response to the global consumption trends of zero carbon and plastic reduction, the global demand for paper packages rose steadily in recent years, particularly in paper package sector driven by the thriving e-commerce in the post-pandemic period. According to the International Corrugated Case Association (ICCA), the global consumption of corrugated cases increased from 127.657 billion m² in 2000 to 273.889 billion m2 in 2023, with an average annual growth rate (AAGR) of 3.2%.

In terms of consumer products, people are willing to pay more for eco-products, pushing the annual popularity growth of eco-friendly household tissue. In addition, in response to the increasing business opportunities for household cleaning products as a result of the pandemic that has urged people to pay greater attention to epidemic control and personal hygiene (sanitation).

Focusing on Paper-based Natural Solutions

We develop low-carbon and plastic-free based on the principle of 3Rs to help the market realize green consumption and reduce waste. In addition to reducing the carbon footprint without lowering their protection performance through technology development, we enhance the efficiency of logistics and carbon reduction. In 2023, CLC also completed the 1^st product carbon footprint inventory for industrial paper, ensuring that the low-carbon industrial paper manufactured by CLC's supply chain continues to be the preferred choice of major global companies.

Leveraging the e-commerce boom and high demand for online shopping packaging, CLC collaborates with e-commerce customers to reduce packaging. CLC increases recovered paper use, improves structure and design for lighter, single-material packaging, uses water-based inks, and minimizes printing. Innovations include tape-free boxes, Design-in 3D platform, and sales forecasting system. AI data helps CLC meet market needs and reduce carbon footprints.

In response to the UN's 2024 global plastic treaty draft, CLC uses Houli Mill's paper machines to develop low-weight, Eco Anti-grass Paperboard for organic rice farming. This paper improves farmland permeability and air circulation, reduces weeds by 23 times, eases labor, and retains soil moisture. It helps Taiwanese farmers adapt to climate change, ensuring sustainability and food security. CLC will continue innovating natural, sustainable paper solutions for climate change adaptation.

R&D and Innovation, Develop Various Sustainable Products and Service

Out of the emphasis on innovation and R&D, CLC invests over 100 million NTD in the development of green and sustainable products, and also implement the smart digitalization every year to enhance production efficiency and reduce carbon emissions, in order to keep up with the global trends and customer demands, furthermore, to enhance corporate competitiveness.

In 2023, the total R&D expenditure (excluding capital expenditure and equipment fee) was NT$132 million, and the major R&D outcomes are as follows:

❙ Green and Innovative Products Helps Consumers Reduce Carbon Footprint

Paper studio Play the eco way

A clean and beautiful environment for future generations. With professional, esthetic structure design expertise, we introduced the “Paper Studio” brand in 2013 to develop edutaining, zero-pollution paper furniture and educational toys for children, pet toys, and cultural and creative products with recovered corrugated paper. In 2023, continued to launch low-carbon, sustainable products such as creative lighting fixtures and pet mats.

In view of the non-recyclability of most materials used in trade fairs and exhibitions, we develop green exhibition sites using corrugated boards with the structural features and recyclability. At the same time, we introduced digital technology to accurately calculate the consumption of paper materials, reduce the error rate of application, save a lot of paper and manual assembly time, and successfully develop recovered paper exhibition venues and exhibits such as: “CLC paper library”, and the office space or corporate showroom, which can be decorated with festivals or important events. We demonstrated the best circular economy model with the least resources to create the greatest value. In 2023, I participated in the "City Industry Innovation (New Taipei City) Project," driven by the Ministry of Economic Affairs Industrial Development Bureau and the Taiwan Design Research Institute. This project integrated design-driven cross-domain innovation by introducing modular recovered paper products into classroom space renovation. The results were also showcased at the 2023 Taiwan Design Expo.

CLC Household Product:
Pamper your loved ones with love and tenderness

In 1993 CLC entered Taiwan's household paper market and launched the “Andante” brand in 1995. With soft quality, delicate texture, and the “pamper your loved ones with love and tenderness” image, Andante has won consumer preference. After acquiring Tien Loong Paper Mill in 2004, CLC continued to launch 2 quality brands, Lover, Dandelion, and Snow Soft, to complete the household product range with toilet paper, facial tissue, kitchen paper, and paper towel, making CLC the leader of household paper supplier in Taiwan.

Through constant process optimization, introduction of new technology and advanced equipment, including Taiwan’s 1^st automated household tissue warehouse, Asia’s 1^st millions Mt wind turbine, and enhance the R&D center to develop high-value and low carbon products to meet increasing consumer demand. In line with the global trend towards low-carbon and plastic reduction solutions rooted in nature, we developed the "SILLACE Andante Paper Packaged Facial Tissue" in 2023. Additionally, we launched products such as the "Dandelion Eco-Friendly Convenient Pack Tissue" and the "Andante Local Extract Facial Cleansing Series," offering diverse ways to help consumers easily practice environmental protection in their daily lives.

Use recovered paper for a virtuous cycle
❙ Dandelion household tissue

Toilet paper is the most widely used household product in Taiwan. However, as a single-use item that cannot be recycled, it significantly depletes the Earth's resources. To promote a circular economy and green consumption, CLC uses FSCTM certified pulp for household paper and invests in eco toilet paper made from recycled materials. These products prioritize resource utilization and environmental benefits.

In 2009, CLC launched the "Dandelion" eco-friendly series, made from 100% recovered paper, and the 1st in the industry to use wind power for production. This series received the environmental label, carbon footprint certification, and FSC^TM Recycled triple green certification, establishing it as Taiwan's leading eco-friendly household paper brand. To meet market demand, CLC extended its product line to the sub-brand "Pure Generation," with sales exceeding 70 million packs in 2023.

CLC also introduced the "Dandelion" eco-friendly multi-purpose bag, reducing plastic usage by combining packaging with garbage bags. Since its launch, 1.13 million sets have been sold, cutting plastic use by 38,000 kilograms. In 2022, CLC expanded the "Dandelion" line to include eco-friendly household detergents and, in 2023, laundry detergents with 100% recycled plastic bottles, offering consumers a wider range of green products and contributing to Earth's sustainability.

Dandelion Eco-Household Official Website

Dandelion Facebook

❙ Exclusive Eco-Friendly Household Paper Products Launched at Major Retail Channels Nationwide, Boosting Recovered Toilet Paper Adoption

To further expand the market share of eco-friendly household paper, in 2023, an exclusive "Dandelion" convenient pack of eco-friendly facial tissue was launched at PX Mart, Taiwan's largest supermarket chain. This product targets eco-conscious and cost-saving consumers with its more economical size. Additionally, responding to the trend for large-pack facial tissues, an exclusive "Dandelion" 3-layer large pack (24 units) was developed for Carrefour, with a 20% increase in the number of tissues per pack, offering consumers a more cost-effective option. In 2023, sales of the Dandelion series exceeded 34 million packs, with increasing market penetration.

❙ Diverse Brand Marketing to Raise Public Awareness of Environmental Sustainability

With the brand mission "Let the Good Cycle Happen," Dandelion actively promotes green consumption and sustainability through online and offline marketing channels. In 2023, to foster public recognition of the circular economy and sustainable products, Dandelion partnered with Bounty Hunter, Taiwan's largest competition platform, to launch a marketing competition with a prize pool of NT$100,000. This initiative aimed to increase brand awareness among younger generations. The competition attracted 154 teams and 721 participants, with 4 teams winning, resulting in a 2.5% win rate and generating 9 million online impressions.

Offline, Dandelion supported various sustainability-related events, including the Rakuten Monkeys Sustainability Party, Global Views Family Picnic Day, National Chung Hsing University Forest Week, Huisun Forest Station Wood Culture Festival, and the Ecological Expo, reaching over 16,000 people who learned about and experienced eco-friendly toilet paper. Additionally, Dandelion held 34 in-person sales events to directly communicate with consumers, encouraging the choice of eco-friendly toilet paper and contributing to the regeneration of Earth's forests.

❙ Innovative Practices in Circular Economy - Implementing Regeneration

"Inspired by the concept of a beautiful cycle, CLC is committed to sustainable co-prosperity with local communities. We continue to leverage our industry innovation capabilities to drive a green transition centered around the corporation, connecting government, the paper industry, business partners, and consumers. This includes document destruction services and the recycling of paper containers."

❙ CLC's Document Destruction Technology Implements Circular Regeneration, Accumulating Carbon Reduction of 72,071 Mt and Preserving 249,000 Trees

Since 2013, CLC has creatively applied its existing pulp equipment to offer free confidential document destruction services, demonstrating the possibility of reducing environmental impact while achieving economic benefits. Over the past 11 years, CLC has helped nearly 400 partners, including government agencies, listed companies, financial and insurance companies, and defense units, to recycle 12,426 tons of confidential documents into over 53.68 million packs of eco toilet paper, achieving a win-win situation for all.

❙ 1^st Paper Maker Completely Recycling Food Paper Containers
Realizing Carbon and Plastic Reduction and Developing Green Business Opportunities

Food paper containers require professional processing plants to separate the plastic surface lamination in the interior from the paper pulp before recycling. However, people often throw waste food paper containers as general waste that is treated by incineration or mixed with general waste paper for use by papermakers, eventually increasing the waste treatment cost.

❙ CLC Implements Complete Resource Recycling, Innovatively Recycles Waste Paper Containers in Response to Global Plastic Reduction Trends

To tackle the problem of waste food paper container disposal, we also believe that it is responsible for papermakers' responsibility to engage in recycling waste food paper containers. Therefore, we made advanced deployment by investing a “efficient film laminated paper treatment system” in 2018 to become the 1st company completely recycling food paper containers. In same year, started the “upgrading of recovered paper supply chain plan” and deepen the benefits of the circular economy. We supported over 167 recovered paper suppliers in Taiwan to upgrade. Reduced paper sludge by 50% and decreased the energy consumption by 10% by implementing source identification, and enhanced the profit and competitiveness of recovered paper supply chain. The plastic laminate is recycled into green fuel and eco-friendly building materials products. Pre-planned to help solve the growth of the take-out catering culture was driven by the epidemic and respond to the stop using plastic bottles policy in Taipei in 2022 to realize benefits with a creative multi-win sustainability business model. With the goal of continuously deepening the recycling efficiency, the recycled bleached pulp line of Tayuan Mill, which will operate in 2023H1.

In response to the Environmental Protection Administration's vision for scaling up resource recycling, CLC has invested an additional NT$1.5 billion to add a 66,000-ton capacity recycled white pulp line at the Tayuan Mill. This advancement will increase the group's certified waste paper container processing volume to 13,700 Mt per month in 2023, nearly a 7-fold increase. It is estimated that this will help address 50% of Taiwan's paper container waste annually, maximizing resource recycling. Additionally, through the recycling merchant support program, CLC promotes the separation of paper containers. By 2023, there are 54 paper container recyclers, an increase of 3 from the previous year. CLC also rallies local sustainability partners (associations, schools, government, enterprises) to innovate and expand carbon reduction impact through diversified external collaborations. Factory tours are also open to raise awareness of sustainability responsibilities within Taiwanese society.

Driving ESG Innovation and Value Addition

"Research and development are the driving forces behind the continuous growth of CLC. Focusing on advanced technologies and enhancing R&D capabilities, CLC also promotes proposal-based improvements and shares successful case studies to facilitate organizational benchmarking and learning."

❙ Encouraging the employees to figure out the problems with the excellent cases management system, Brain-storming the ESG innovative cases

Since 1980, CLC has introduced proposal improvement systems, QCC, and TPM. In 2008, we launched an activity integrating evaluation and rewards, focusing on process enhancement, technology development, green energy innovation, and customer service. This initiative channels carbon reduction suggestions from frontline manufacturing to senior management. Recently, in response to ESG transformation, CLC has used competitions to motivate employees to identify issues, fostering healthy competition and enhancing problem-solving and innovation. Since 2021, ESG improvement activities have extended to overseas locations, encouraging continuous innovation and optimization.

❙ Nearly 1,000 benchmark cases creating profit over NT$230 million

In 2023, over 1,000 proposals were submitted, with 46 excellent cases reaching the finals: 10 administrative, 21 papermaking, and 15 paper products. These proposals are expected to generate nearly NT$230 million in profits, enhancing production efficiency, sales quality, energy saving, carbon reduction, innovation, and work efficiency.

❙ Presenting the ESG excellent cases in public, Creating the organizational culture learning and sharing

We conduct excellent case sharing for the excellent cases through annual plant operation vision meeting every year. Through the CLC E-Learning platform and internal publications, we enhance the internal knowledge sharing and promotes benchmarking within the organization.

❙ Smart Papermaking 4.0
Enhance Production Efficiency; Reduce Energy Consumption; Realize Low-Carbon, Energy-Efficient, Green Production

" All digital technologies (AI, big data, cloud, IoT, 5G) are combined to assist with production (knowledge inheritance), implement monitoring and management (preventive warning), and engage in process optimization and performance enhancement, achieving a win-win for service delivery and carbon reduction benefits."

CHENG LOONG