Taking a comprehensive view of 2023, amidst the global economic recovery, climate change and sustainable development continued to be the pivotal global issues. The COP28 resolutions did not explicitly phase out fossil fuels, but it indicated an accelerated transition to net-zero energy system, and the imposition of carbon taxes has added to the challenges for corporate operations. Moreover, the rapid development of digital technology innovation will continue to influence consumer behavior and business models, which will set off waves of business reforms. Furthermore, the changes in the international situation caused by Russo-Ukrainian war, the Israel-Kazakhstan conflict, and geopolitical risks have caused fluctuations in material supply and energy markets. These all challenge the enterprises’ capabilities in supply chain management, cost control and risk assessment. This is also an undeniable reality.

　　In early 2024, TSC faced a severe crisis on brand trust due to the incident where a box of TSC Safety Pork (Pork Boston Butt Sliced) was found to contain cimbuterol. In the midst of over a month of turmoil, all the staff worked together to alleviate doubts from all works of life, provided immediate clarification, and cooperated with government agencies and impartial third parties to conduct inspections of TSC’s feed, livestock farms, and meat products, and the results showed zero detections, progressively restoring consumer confidence in our brand. Finally, the Office of Food Safety, Executive Yuan, held a press conference based on the conclusion of the expert meeting and clarification was made to eliminate the risk that cimbuterol was in the stages of agricultural pig farming, slaughtering, cutting, and sales, allowing the public to understand TSC’s steadfast commitment over the past century and restored our innocence.

　　Now that everything goes back on the right track, it is also time for TSC to demonstrate its resilience. TSC will continue to build upon our expertise in agricultural and livestock experience and technology, make good use of the land resources based on the principles of circular economy, and align with national policies and social needs to incorporate net-zero and carbon reduction, environmental education, and social public welfare into the operational sales strategies, stepping toward “developing renewable energy,” “satisfying residential needs,” “promoting sustainable agriculture,” “providing eco-friendly and health-conscious services and products,” and “promoting cultural assets preservation and social welfare.”

• Development of Renewable Energy to Support National Green Energy Policy

　　In terms of solar Photovoltaics, as of the end of 2023, TSC has established 99 rooftop solar PV fields, 6 ground-type solar PV zones, and 9 floating solar PV zones in its operating bases for grid-connected PV power generation, among which included 2 agrivoltaics demonstration sites, and the solar PV power generation can reach 672.86 GWh annually. We will continue to evaluate locations suitable for solar PV power generation sites to support the goals of the green power policy. As for biogas power generation, in the future, the installation capacity of biogas power is estimated to reach 59.22 GWh annually after the successive renovation of the livestock farms.

• Circular Housing for Intergenerational Co-residence for the Implementation of Residential Justice

　　The increase of domestic ageing population and inflation have driven up the housing prices, making it increasingly urgent to address the needs for the care of the elderly and the housing for the young people. On the basis of circular housing, TSC targets at net-zero buildings by 2050 and had introduced the concept of intergenerational co-residence from abroad for the construction of intergenerational co-living residence and won the award in the first Net Zero Building Design Award. In addition, TSC also provides land for the National Land Management Agency, Ministry of the Interior, and local governments to evaluate the construction of social housing, and for the Ministry of Health and Welfare to evaluate the construction of residential long-term care institutions. Furthermore, 1,598 units of TSC’s 6 self-owned student dormitories have been transformed into social housing. Only when settled can one work in peace and contentment. TSC strives to ensure that the elderly is cared for, the adults are employed in jobs that make full use of their abilities, and the children are nourished, thereby realizing social equality and justice.

• Carbon Reduction and Carbon Negativity for the Promotion of Sustainable Agriculture

　　The renovation plan of the livestock farms combining solar PV power generation, biogas power generation, waste reduction and water conservation is scheduled to be completed in 2025. By then, TSC will not only step closer to its goals of green energy and net-zero emissions, but also upgrade the livestock industry and move toward sustainable management. For more than the past two decades, TSC has assisted the government with the promotion of organic cultivation by constructing self-owned organic parks and cooperating with local governments, and the phased task has been completed. We will provide organic farmland and facilities to continue supporting organic farming in Taiwan.

　　For the sustainable management of our core business, sugar refinery, in addition to process improvements and collaborative flue gas carbon capture experiment, TSC also makes efforts toward sustainable agriculture in sugarcane field management. We make use of biogas residue and biogas slurry to irrigate sugarcane fields and plant green manure during fallow periods to help local governments solve the problem of livestock manure removal, increase soil organic matter, nurture sustainable land resources, and reduce subsequent use of nitrogen fertilizers to carry out circular economy. The cultivation area of sugarcane ratooning is gradually increasing yearly, reducing the amount of diesel and chemical fertilizers required for plowing, resulting in the benefit of carbon reduction. In addition, we are currently cooperating with the Forestry and Nature Conservation Agency in the application for forest carbon sink and participating in International Smallholder Farmers Carbon Farming Soil Carbon Sequestration Project to evaluate the carbon sequestration potential of sugarcane plantations.

• Providing Eco-friendly and Health-conscious Services and Products

　　TSC not only attaches great importance to people’s health, but also treats nature as well as cherish the earth with the same attitude. These principles are embodied in the products and services we provide.

　　In terms of product management, TSC has developed many products in recent years based on the concepts of circular economy and resource reuse. We have made use of pig gallbladder, discarded oyster shells and fish scales from milkfish farmed locally and successfully developed shampoo, calcium carbonate biomass materials and Beauty Collagen Jelly, and all of these products have won the recognition and encouragement from relevant government awards. At the same time, the brand image of the existing products has also been improved. The cooking oil products have been upgraded from the original carbon label to the carbon reduction label, and our canned fish and cereal products have also obtained the Clean Label or Eco-label.

　　For the aspect of eco-friendliness, TSC has obtained environmental education certification in 5 sites since 2016, and is currently planning the sixth one. We also develop natural ecological and cultural tourism activities based on the characteristics of each operating base to allow more people to understand issues like ecological conservation, industrial culture, renewable energy and so on. Through lifelong learning and experiential engagement, we can achieve the physical and mental health as well as the health of the ecological environment.

• Promotion of Cultural Assets Preservation and Social Welfare

　　To promote local prosperity and development, the extension of the sugar train from Suantou Sugar Factory to HSR Chiayi Station was completed and commenced for operation on October 8, 2022, while the extension of the sugar train from Suantou Sugar Factory to the Southern Branch of National Palace Museum was commenced for operation on October 7, 2023. The completion of the extension of the sugar train can not only help promote local development but also contribute to the preservation of important cultural assets.

　　For social welfare, with the idea of reaching common good as the cornerstone, TSC incorporates social welfare into its marketing plans, develops activities such as public welfare coffee, points collection for charity concerts, public welfare markets, lectures, and charity road runs. In addition, we also organize over 100 neighborhood assistance programs, striving for the common prosperity of the community. In terms of talent cultivation and care, besides providing stable income and job security, TSC also provides various welfare subsidies, recreational activities, educational training courses, and incentive systems to ensure that our employees are free from worries and can continue to learn, grow, and achieve self-fulfillment in the workplace. We believe that with the support of our employees, the communities and society, TSC’s path to sustainability will be more solid and steady for sure.