Sustainability

Energy management to create sustainable environment

What is ESG?

The abbreviation “ESG” originated from the United Nations’ 2005 report “Who Cares Wins,” which proposed that companies should include “environmental,” “social responsibility,” and “corporate governance” in their evaluation criteria for business operations, which would contribute to generating positive impacts on society.

Environmental

  • Climate change
  • Sustainable environment
  • Carbon emissions
  • Pollution control
  • Energy efficiency

Social

  • Labor rights
  • Human rights protection
  • Community planning
  • Information security

Governance

  • Corporate governance
  • Information transparency
  • Board of directors and supervisors system
  • Risk management
  • Business ethics

Source:https://www.scribd.com/fullscreen/16876744?access_key=key-mfg3d0usaiuaob4taki

Taiwanese Companies and ESG

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According to the “Sustainable Development Roadmap for Listed and OTC Companies” released by the Financial Supervisory Commission, as of 2023, 118 listed and OTC companies with a capitalization of over NT$10 billion and 45 steel and cement companies are required to complete their carbon inventory and greenhouse gas inventory by 2027. Companies exporting to European countries also need to take immediate action to move towards sustainability.

Important Milestones

  1. In 2015, the “Paris Agreement” at the United Nations Climate Summit aimed to curb the global warming trend, with the goal of limiting the global temperature rise to no more than 2 degrees Celsius by the end of this century and setting the target of a temperature rise of 1.5 degrees Celsius.
  2. The European Carbon Border Adjustment Mechanism (CBAM) regulations will be tested in 2023 and officially implemented in 2026, initially regulating five major carbon-emitting industries: cement, electricity, fertilizers, steel, and aluminum. The EU carbon price is 80.03 euros.
  3. At the COP26 United Nations Climate Summit, global greenhouse gas emissions must be reduced by 50% before 2030 and reach “Net Zero” by 2050.

Source: https://tradingeconomics.com/commodity/carbon

Why take actions for energy management immediately?

Reduce Carbon Costs: Carbon pricing is increasing. The earlier greenhouse gas inventory is conducted, the more carbon emissions are reduced, the earlier carbon costs can be reduced.

Increase Production Efficiency: Changing production processes, adding equipment, and increasing production efficiency can double production capacity.

Lower Production Costs: Creating new production processes to lower carbon costs and lower production costs.

Create New Business Opportunities: Creating new production models can increase new business opportunities.

【Online Seminar】Manufacturing Execution System (Short Version)

The implementation of MES is the first action for sustainability.

Are the production lines running smoothly? Can orders be delivered on time? Has the production capacity of the line been fully utilized? Does the quality meet the requirements? How to quickly and accurately understand the current production situation of the lines to achieve production and sales coordination and improve the competitiveness of the enterprise?

This is the core of smart manufacturing, MES (Manufacturing Execution System). So, what exactly is MES? Why do we implement MES even though we have used ERP? What are the merits of the implementation? Let NTT DATA explain through a series of reference cases, to give you a conceptual understanding of MES and to make it clearer what role MES plays in factory production management.