Message from the Chairman

As we enter the third year of the pandemic, we see changes in areas as large as the international situation and as small as everyday life. We are on the cusp of a new phase of human development. Extreme climate change and turmoil in the international political and economic situation in recent years has accelerated the arrival of a new era. In the post-pandemic era, the structure and development process of industries will be entirely different from the past, but FPCC will not change its pace on the path towards sustainable development. We established the Sustainable Development Committee in May 2022, and believe that sound governance and risk management will help increase our company value. FPCC focuses on accelerating industry transformation for its sustainable development, and becomes aligned with the world through a people-oriented model for co-existing and mutual prosperity, actively combining its sustainable development strategies with its core business.

Providing resilient and affordable energy to accelerate industry transformation
The Russo-Ukrainian War in 2022 has made energy synonymous with "long-term risk" and "short-term crisis." European countries were not the only ones to be profoundly impacted by the war, as it also caused high volatility in global natural gas, coal, electricity, and oil prices. Due to the impact of war and high inflation, the government prioritized energy stability and affordable commodities, which impacted our profit performance and delayed the progress of carbon reduction in the short-term. We continue to fulfill our corporate social responsibility and direct our efforts to reducing coal use, developing low carbon processes, and searching for investment opportunities in green energy. The energy shortage caused by the war showed the vulnerability of global energy systems in the current stage. Countries around the world have thus made many major changes to accelerate their energy transition, including carbon reduction policy, green energy, carbon trading platform, and carbon border tax. FPCC responds to climate change issues with action and set the mid-term goal to reduce carbon emissions in 2030 by 28% compared with the baseline year of 2007, as well as the goal to achieve carbon neutrality by 2050. As the industry's pioneer, we accelerated the implementation of low carbon business models, and continue to search for new technologies related to raw materials, processes, fuel, and transportation, working together with supply chain partners in developing green business models. We utilize automation and big data technologies to assist partners with decision management, and make adjustments to carbon reduction strategies and action plans whenever necessary.

People-oriented with responsible care

People are the prerequisite for society to exist and develop, and also a decisive force in social development. Concern about life and society is particularly important during the volatile pandemic. As an important member of the global refining and petrochemical industry, FPCC emphasizes a people-oriented occupational safety and health culture, provides employees with a safe and healthy workplace environment, and also implements the responsible care system, continuously making improvements to achieve the goal of zero accidents. Furthermore, we show how much we value employees, and provide a complete career development path along with training to fully develop employees' potential, so that they can grow together with the Company. We not only take care of our employees, but also their families. FPCC began providing childbirth subsidies in 2022, and share the joy of life with expecting parents. FPCC also provides childcare subsidies and scholarships to support and accompany the next generation as they grow. FPCC strives to become an enterprise full of happiness. FPCC has closely followed local education for years with the goal for sustainability to strike root. We worked with National Changhua University of Education in organizing science education activities, and engaged in industry-academia collaboration to enrich the knowledge of the next generation, increase children's creativity, and allow the land to flourish.

In the post-pandemic era, the world is in a crucial process of transition and development. How FPCC adjusts its business model to maintain a competitive advantage in the changing situation is something we must learn in order to become sustainable. We will continue to dedicate our efforts and invest our resources to achieve sustainability, and will follow various issues to make actual contributions to global sustainability, so as to create long-lasting value in sustainability.