Page 4 - 2021 CPC Corporation,Taiwan

CPC Corporation, Taiwan
The Chairman’s Preface
Overcoming adversity, setting up new milestones Turning challenges into opportunities
As COVID-19 swept the globe in early 2020, countries around the world moved to prevent its spread through multiple pandemic control measures, including lockdowns and border closures. Global economic activity came to a halt and tourism, airline and manufacturing industries were the first to suffer the painful blow, causing sharp decrease for energy demand. International crude oil prices continued to collapse; oil futures even traded at negative prices in April, 2020 and did not stabilize until October, 2020. Thanks to strong pandemic control in Taiwan and the combined efforts of all our employees, we were able to maintain consistent supply of energy and petrochemical raw materials to domestic consumers. As the government implemented multiple policies for stabilization of overall prices and relief plans to domestic industries and people, CPC still managed to deliver decent operational performance. Though the performance was not as solid as in 2016-2019, considering the force majeure of the COVID-19 pandemic, this was the tremendous achievement.
In 2020, CPC implemented pandemic prevention and control measures in accordance with government policies in order to ensure the well-being of our staffs and business operation. In addition to coordination between production and sales on a rolling-plan basis, we continued to carry out our international exploration projects, national major energy infrastructure projects, and a variety of domestic investment plans. CPC managed to achieve the annual budget implementation goals, made significant achievements in terms of its business performance and received multiple awards. In regard of international cooperation for exploration projects, the Oryx Block in Chad, where CPC served as an operator for the first time, has begun production. The first batch of crude oil arrived at Taiwan in early December of 2020, marking a milestone for CPC’s international exploration and production efforts. In regard of innovative gas station services, CPC formally launched e-payment and third-party payment service in all domestic gas stations throughout Taiwan; CPC also launched its own-branding coffee service named CUP&GO to further diversify its business scope and strengthen its market share through differentiated marketing strategy; and CPC has continued to set up battery swapping/charging stations and completed the construction of the third and fourth demonstration sites for Smart & Green e-Station (located at Guanfu of Hualien and Chiedung at Taoyuan respectively). CPC gas stations have won the Reader’s Digest Trusted Brand Award in the category of gas stations for 20 consecutive years.
In terms of product quality enhancement, CPC Engine Oil API SP received API SP certification in 2020; its AWS series of hydraulic oil received international certification by Parker Denison, an established pump manufacturer in the U.S.; CPC lubricants have won the Gold Award of Trusted Brand in the category of lubricants and related products for automobiles for the second time. In respect of product R&D and innovation, its GTRI became a gold medal winner of Invention Contest, Taiwan Innotech Expo with its R&D achievements in seaweed cultivation and biomass oil production in 2020.
CPC has endeavored to fulfill its corporate social responsibility, to protect the environment, to continuously contribute to the society and has made remarkable, innovative achievements in 2020. In respect of environment protection and ecology conservation, we obtained an international third-party certificate for Carbon Neutral LNG, receiving for the first time, two LNG shipments in March and November equivalent to the carbon sequestration volume of about 1,098 Taipei Daan Forest Parks in one year, to fulfill our vision of balancing environmental protection and economic development. As CPC moves toward the construction of the third LNG Receiving Terminal, a low-carbon energy facility, it has allocated an area as a habitat of Little Terns, which proves the company’s commitment to ecology conservation. CPC has also played a leading role among the state-owned enterprises in promoting Fengcha (tea service) activity, providing branch offices and gas stations as tea service sites in order to boost the environmental protection action of “plastic reduction from sources.”
For many years, CPC has spared no effort in caring about underprivileged people, innovating energy-related education practices, sponsoring a variety of sport events and supporting elite athletes. In 2020, we organized the CPC soccer team in order to cultivate athletes with concrete actions. The CPC soccer team won the championship of the Taiwan Second Division Football League and was promoted to the 2021 Taiwan Football Premier League. CPC has continued to donate second-handed computers to schools in remote areas for remote teaching/learning in order to increase digital applications and improve the quality of education. In addition, CPC has also teamed up with Panasonic Taiwan for hosting the “2020 Green Life Creative Design Competition,” which mobilized the resources from the industry, academia and government to encourage students to demonstrate their creativity on green-life related applications, leading to a novel smart and green lifestyle.
CPC’s continuing dedication to fulfillment of CSR has earned public recognition in 2020 with the honor from 2020 Asia Responsible Enterprise Awards in two categories: “Circular Economy Leadership” and “Investment in People,” as well as a certificate of “Carbon Reduction Championship.” CPC has also won the biggest award of “Leadership - Industry Champion of the Year” and awarded “Sustainability - Asia’s Best Workplace” in Asia Corporate Excellence & Sustainability Awards. In addition, CPC has also won the “Comprehensive Performance Award-Taiwan TOP50 Sustainability Corporate Award” and “Corporate Sustainability Report Awards-Energy Industry Platinum Award” of 2020 TCSA Taiwan Corporate Sustainability Award. CPC’s long- term endeavors to pursue mutual developments of economy, environment and society have been well recognized as evident in the record high numbers of awards received.