CMP

Letter From Management

2022 was a year of risks and challenges for companies due to the impact of the Russo-Ukrainian War, volatile energy, food, and commodity prices, inflation and the ensuing interest rate hikes and monetary policies. Looking back at the 50 years since its founding, CMP Group has survived the oil crisis, financial crisis, and COVID-19. Despite the difficulties, CMP Group has succeeded in winning opportunities and expanding its business with the concerted efforts of all employees. Faced with a future dwindling natural and human capital, companies must accelerate their response to sustainability issues. On the one hand, they must prepare plans for their businesses and other tangible goods. On the other hand, they must connect social and environmental development to create influence in order to achieve steady progress amid the changes. CMP Group has been preparing for this for years.

⬗ Sustainability for the Future

We have focused on the three main businesses of the Group and commenced the division of labor. Metal Manufacturing aims to become the circular economy practitioner by recycling vast quantities of steel and not producing single-use products. Land Development aims to become the friendly living environment provider to create architecture that would last a  century. Lifestyle Innovation positions itself as the sustainable living implementer and is committed to creating a lowcarbon ecosystem and sustainable settlements.

This year, the Company continued its strategy of promoting sustainability in the order of G, S, and E, and we focused on three major business missions once again. Based on the existing implementation, we planned 19 sessions of “CMP Group Fifty Lectures” to intensify sustainability concepts and enhance the Group’s ability to attain its vision. As we celebrate our 50th anniversary, we used online and inperson forums to report our past strategies and results to stakeholders and outline our future goals and commitments.

⬗ Advance preparation to support initiatives

CMP Group focused on technology upgrades, equipment optimization, digital transformation, systematic management, talent empowerment, and upstream/downstream integration to create the comprehensive capacity for transformation and obtain outstanding results. The strategy coincided with “Taiwan’s Pathway to Net-Zero Emissions in 2050”.

In response to the series of carbon issues, we follow the sustainable development plan and start with key location of operations before expanding to the entire Group. We have gradually completed the greenhouse gas inventories and product carbon footprint inventories, and we continue to install renewable energy and energy storage equipment. In response to the challenges of talent retention that may be caused by the low fertility rate, CMP Group has significantly increased the existing marriage subsidies, including a NT$100,000 marriage subsidy and childcare subsidies of up to NT$360,000 per child. We have also worked with colleges and universities for more than a decade to nurture rising stars in the industry. We now have 105 recruits who stayed in the Group to serve in key roles in our development. In 2022, we won the CHR Corporate Health Citizenship Bronze Award and the TCSA Talent Development Leader Award. Our attempts and early preparation have bought CMP Group more time and resources, and gained new opportunities.

⬗ Green molding with risk management

CMP Group offers products and services that cover all necessities of life, including food, clothing, housing, transportation, and entertainment. We assess the Group’s exposure to climate-related risks based on the TCFD Recommendations. They include physical and transformational risks as well as the identification of key indicators such as carbon emissions, product carbon footprint, greenhouse gas emission reduction targets, and climate-related risk management. We then implement related tasks one by one. We are also committed to the research and development of low-carbon production technologies to reduce carbon emissions, use of renewable energy and green materials, and optimization of product designs to ensure sustainability. We must grasp opportunities brought by climate change and continue to innovate and change in the industry.

After years of hard work, Metal Manufacturing has extended the product life cycle by 10 to 20 years and increased the average use of reclaimed steel as raw materials from 71% in 2015 to 94% in 2022. In some plants, the number reached up to 99%. The GHG emission intensity decreased by 13.02% compared to the baseline year of 2015, and we won the recognition of international customers. Our plants in Mainland China have also been evaluated as Demonstrative Enterprises of China Green Foundry.

Land Development focused on green building and smart building as the basis of its design. After more than ten years of continuous adoption, it has applied Building Information Modeling (BIM) in the design, construction, and use of buildings. It has also provided building health inspection services to create a secure living environment for customers. Starting from 2022, we introduced carbon footprint assessment for the construction industry for new development projects with the goal of obtaining the LCBA (Low Carbon Building Alliance) Construction Carbon Footprint Certification at the design permit stage.

Lifestyle Innovation expanded development outwards from Calligraphy Greenway in Taichung in the shape of leaf veins to develop the “Calligraphy Greenway ecosystem” neighborhood development plan. We use digital technologies to connect 200 stores and education institutions in the area and plan in-depth urban travel routes. The neighborhood management system, implemented together with the Sunny Day Point Mall and AI marketing, helps stores increase their brand visibility. It eliminates the need for printing 30,000 plastic cards and 250,000 physical gift certificates each year, and achieves the goal of sharing neighborhood data to create a sustainable ecosystem.

When CMP Group was first founded, we worked together with employees to bring food onto the table. Now, we want to help the earth coexist with society. After so many years, we have never lost touch with the idea of sustainability. When faced with the unpredictable external environment of the future, we look to the bamboo as a model for reflection and self-motivation. Bamboo is an important symbol of Eastern culture due to its association with moral character and its resilience as a plant. Its roots hold and converge to form a forest, which increases its tolerance for wind and rain. As we welcome the arrival of 2023, we hope to learn from its “resilience” and we hope that CMP Group will continue to make use of its strengths to meet the challenges of the future.

Chairman of CMP Group

LIN, Ting Fung