Pathways to Net Zero: ESG and Carbon Reduction in Manufacturing #
ESG Sustainable Management at Yeh Her Yow Plastic Co. #
In response to the ongoing globalization of markets, Yeh Her Yow Plastic Co. has consistently pursued technical certifications and remains committed to advancing its technological capabilities. The company closely monitors global market trends and, in alignment with the growing importance of ESG (Environmental, Social, and Governance) principles, has initiated concrete actions to promote energy conservation and carbon reduction. Over the past year, Yeh Her Yow has begun conducting comprehensive carbon inventories, aiming to achieve sustainable operations that meet both customer and market demands.
Recognizing the link between global warming and climate change, Yeh Her Yow Plastic Co. Mfg. Ltd. (YHY) has embraced the net zero trajectory outlined by ESG frameworks and acknowledges the corporate responsibility to contribute to societal well-being. Years ago, the company began exploring strategies to reach net zero carbon emissions, focusing on equipment selection, process optimization, and material choices. The initial step involves a thorough greenhouse gas inventory to identify major sources of carbon emissions, followed by targeted reduction efforts.
When constructing new facilities, Yeh Her Yow prioritizes natural ventilation to minimize electricity usage and installs solar panels on factory and office rooftops. These measures not only improve indoor comfort but also increase the use of green energy, thereby reducing overall carbon emissions. The company collaborates with customers to jointly pursue net zero carbon reduction goals.
During product development, Yeh Her Yow assists clients in designing lightweight products that maintain functionality and strength, thereby reducing total carbon emissions. Leveraging its expertise, the company co-develops material applications tailored to customer needs and supports the adoption of multi-component composite materials to replace energy-intensive industrial materials. Additionally, Yeh Her Yow recommends specialized processes that can consolidate multiple steps, further lowering carbon emissions.
Global Warming and the Urgency of Carbon Reduction #
Greenhouse gases are driving surface temperature increases and more frequent extreme weather events. The United Nations has called for immediate carbon reduction actions, making “net-zero carbon reduction” a shared global objective. By the end of October 2022, over 110 countries had pledged to achieve net-zero greenhouse gas emissions by 2050 or 2060. For businesses, failing to implement greenhouse gas inventories and carbon reduction strategies can directly impact operational competitiveness.
The First Step to Net Zero: Greenhouse Gas Verification (Carbon Footprint Verification, CFV) #
A greenhouse gas inventory quantifies the total direct and indirect greenhouse gas emissions generated by a company during operations, including production and transportation. These emissions are converted into metric tons of carbon dioxide equivalent. The inventory typically covers seven main categories: CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, and CFCs, as defined by the Montreal Protocol.
Effective Greenhouse Gas Inventory Implementation #
Achieving net-zero carbon emissions is a complex process, generally divided into four stages:
- Introduction of carbon inventory
- Setting reduction targets
- Stepwise implementation of reduction strategies
- Declaration of carbon neutrality
For many small and medium-sized enterprises, the initial carbon inventory phase is the most challenging, particularly regarding data sources and calculation standards.
Understanding the Carbon Footprint #
A carbon footprint represents the total greenhouse gas emissions, both direct and indirect, resulting from an individual or organization during production or service delivery. It serves as a key metric for assessing the environmental impact of human activities. Every stage—from manufacturing and transportation to consumption, waste treatment, and recycling—can contribute to the carbon footprint, intensifying climate change and the greenhouse effect.
Why Conduct Carbon Footprint Verification (CFV)? #
1. Environmental Protection
The Sixth Assessment Report by the United Nations Intergovernmental Panel on Climate Change (IPCC) urges countries to cut total greenhouse gas emissions by more than 50% by 2030 and achieve net zero by 2050. This means balancing human-caused emissions with offsets to reach a net value of zero, limiting global temperature rise to 1.5°C and mitigating severe climate impacts. Carbon inventories help organizations understand the sources and quantities of their greenhouse gas emissions, supporting environmental protection efforts.
2. Promoting Energy Transition
Over 130 countries have committed to net zero carbon emissions, replacing finite natural resources with renewables and advancing energy transition policies. Carbon inventories enable companies to analyze emissions throughout the product or service lifecycle, driving improvements, innovation, and enhanced competitiveness while facilitating energy transformation.
3. Demonstrating Corporate Social Responsibility
Carbon inventories also reflect a company’s commitment to social responsibility, addressing both environmental protection and social obligations within ESG frameworks. This can enhance investor and public trust, strengthen partnerships, and fulfill regulatory requirements for sustainable operations.
Scope of International Greenhouse Gas Inventories #
Greenhouse gas inventories are typically categorized into three types:
- Direct emissions
- Energy indirect emissions
- Other indirect emissions
Yeh Her Yow’s Approach to Carbon Footprint Verification (CFV) #
Yeh Her Yow Plastic Co. Mfg. Ltd. (YHY) has proactively addressed the challenges of global warming and climate change by aligning with ESG principles and pursuing net zero carbon emissions. The company has taken several practical steps:
- Over 20 years ago, traditional motor-driven injection molding machines were equipped with frequency conversion devices to reduce electricity consumption.
- More than a decade ago, factory equipment was upgraded, replacing high-energy, low-efficiency motors with servo energy-saving motors, significantly lowering carbon emissions.
- In recent years, all factory lighting has been converted to LED.
- Multiple electric forklifts have been purchased to reduce reliance on diesel-powered forklifts.
- In collaboration with long-term customers, recycled cartons have been replaced with reinforced corrugated boards to extend their lifespan and increase recycling rates.
- In Q4 2022, high-energy air compressors used in injection molding were replaced with servo frequency conversion air compressors, and multi-connected grid systems were implemented to optimize load rates.
These initiatives reflect Yeh Her Yow’s ongoing commitment to achieving zero carbon emissions and sustainable management.
