Page 4 - 2024 CPC Corporation,Taiwan

Multifaceted Innovation - Outlining the Path to Sustainability
In 2023, the global economy was expected to rebound in following the pandemic. However, with persistent inflation and tightening monetary policies of various countries, investment and consumption have been sluggish and trade has slowed down. Coupled with geopolitical tensions, such as the Russia-Ukraine war and the Israeli-Palestinian conflict, the fluctuation in the international energy and raw material prices has slowed the growth of the economy-wide. In the face of the severe operating environment, CPC Corporation, Taiwan (CPC) has continued to implement improvement measures to increase revenue, reduce costs, and strives to stabilize domestic oil and gas supply. In order to comply with the government’s policy of taking care of people’s livelihood and industrial users, and stabilizing commodity prices, CPC has cumulatively lost up to NT$80.4 billion from the absorbing cost of various products, resulting in an operating loss in 2023.
In 2023, based on the existing foundation, CPC has spared no effort in improving corporate governance, environmental sustainability, and social cohesion to achieve the goal of net-zero transformation. It set out a new corporate vision established on July 20 after thorough discussions, an Audit Committee comprising all independent directors established under the 34th Board of Directors to replace the former supervisory system to further improve corporate governance, and asking supervisors to set a good example in adhering to the ethics of legal compliance, honesty and integrity. Ethics and integrity have become core values of the company and will be deep-rooted in the hearts of the employees. Importantly, CPC has been promoting various action programs under the strategy of “premium oil, carbon reduction, and clean energy” and preliminary results have been achieved.
In terms of research and development, CPC has introduced green concepts in recent years, and has achieved outstanding results in high-value materials, intelligent safety and environmental applications, which have been honored with several awards at the 2023 National Brand Yushan Awards. Simultaneously, we continue to promote the development of high-value petrochemical materials and key energy storage materials, and are committed to the development of carbon utilization and storage technologies, as well as to research into energy-saving and carbon reduction technologies for manufacturing processes.
In the area of occupational safety and health, CPC strengthened disaster prevention and rescue capabilities, inspections of high-risk factories, and contractor management, to create a friendly workplace environment. CPC also introduced artificial intelligence in various ways to proactively promote the safety and resilience of affiliated key infrastructure and to enhance the overall performance of occupational health and safety.
In the area of environmental protection and ecological conservation, CPC has finished carbon footprint verification on more than 700 products and introduced an internal carbon pricing scheme; CPC has also called on marine citizen scientists to search for traces of protected animals, to help to take care of the marine ecosystem together.
In terms of energy exploration and mining, in 2023 CPC acquired seven mining areas, including the B15 project in Mexico, and the WA-533-P project and Bedout projects in Australia, and it will continue to promote cooperation projects in the Tainan Basin, as well as the production of onshore mining areas, such as the Jinching and Xinying mines in Taiwan, in order to expand CPC’s own working interests in oil and gas.
In terms of diversified services at gas stations, the joint operation of Taiwan Sugar Corporation gas stations with CPC has shown a win-win situation for state-owned enterprises. Increase oneself-operated and self-built Smart Green Energy Gas Station,
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Chairman