Climate Change Response-Sustainable SHG | Silks Hotel Group ESG Website

Performance Results

In 2024, the replacement of 400 tons of ice water chillers improved single-unit energy efficiency by 38.2%.
Through the AI food waste management system, the average food waste per person at the buffet restaurant Belle Table decreased by 47.3%, equivalent to a reduction of 55.4 tons of carbon emissions.
The "EcoMeet Sustainable Meetings" project attracted participation from 141 companies, accounting for 21.5% of the total annual meetings, with a total of 24,871 attendees.

Single-unit energy efficiency improvement

38.2 %

Average food waste per person in the buffet restaurant decreased

47.3 %

"EcoMeet Sustainable Meetings" of total annual meetings

21.5 %

Future Goals

Short-term Goals

Medium to Long-term Goals

Purchase energy-efficient labeled equipment.
Fully switch to large-capacity refillable bottles and reduce paper usage by 3–5% annually.

Gradually increase low-carbon and carbon-footprint products by 2% annually.
Achieve 2–5% use of renewable energy by 2030.
Reduce the proportion of imported raw materials by 5% within three years.
Develop a carbon neutrality roadmap and renewable energy utilization plan in response to climate policies.

Impact

In response to climate change, the Group has identified five key risks: stricter environmental and regulatory policies (e.g., carbon taxes and carbon pricing), rising costs of low-carbon energy, raw material shortages and price increases, sustainable supply chain management, and changing consumer preferences requiring product and service transformation. Operationally, compliance costs and customers' green choices may lead to cost pass-through and potential reductions in market competitiveness.

Policy Commitment

The Group responds to government greenhouse gas reduction policies and international net-zero trends by establishing a Climate Action Policy and endorsing the 1.5°C Climate Action Declaration. Upholding the principles of responsible resource use and accountability, the Group implements low-carbon transition measures and environmentally friendly initiatives, demonstrating its proactive commitment to addressing climate change.

Actions Taken

The Group has established an Environmental Sustainability Task Force and an energy management system to drive equipment upgrades and improve energy efficiency. Technologies such as LED lighting, smart temperature controls, low-flow faucets, and AI food waste systems are implemented to enhance energy and water resource management. At the same time, waste sorting and recycling initiatives are promoted to achieve low-carbon operations.

Improving energy efficiency
Established an Environmental Sustainability Task Force and an energy management system to drive equipment upgrades and improve energy efficiency.
Water resource management
Implemented technologies such as LED lighting, smart temperature controls, low-flow faucets, and AI food waste systems to enhance energy conservation and water resource management.
Waste management
Promoted waste sorting and recycling initiatives to achieve low-carbon operations.

Evaluation Mechanisms

Reduction effectiveness evaluation
The Energy Management Team monitors data daily and reviews results monthly. The ESG Team tracks implementation during quarterly meetings and regularly reports progress to the Board of Directors.
Supply chain evaluation
Suppliers' sustainability performance is periodically reviewed to ensure strategies are effectively implemented and risk management measures are adjusted promptly.
ESG team meetings
Quarterly discussions are held to ensure all measures are effectively executed and achieve the intended outcomes, with regular reporting to the Board of Directors.

Stakeholder Engageme

The Group discloses its climate action achievements through reports and actively communicates with customers, employees, communities, and government agencies. It promotes customer participation in environmental initiatives, employee training, and community environmental activities, implementing SDGs Goals 7, 12, and 13, while fostering consensus and action among stakeholders.

Governance

The Group has established a Sustainability Committee, under which the Environmental Sustainability Task Force is responsible for identifying climate-related issues. The Group has also adopted the TCFD framework for climate-related financial disclosures as a key reference for internally assessing climate risks and financial impacts. Issues and strategies proposed by the Environmental Sustainability Task Force are evaluated and approved by management, and implementation progress and effectiveness are reported annually to the Board of Directors, ensuring transparency and accountability in climate governance.

Strategy

The Group identifies and assesses risks related to the low-carbon economy transition and physical climate impacts, clearly outlining five key risk management issues.

Transition Risks

Physical Risks

Opportunities

Identified Risks and Opportunities	Risk Description	Potential Impact on Operations and Finances	Impact Level / Timeframe	Response Strategies and Goals
Policies and Regulations	Under the Energy Management Act, an annual electricity savings target of 1% must be achieved. The scope of carbon fees and carbon taxes may expand.	Failure to achieve the 1% annual electricity savings may result in the competent authority not approving the submitted implementation plan. Compliance costs may increase due to equipment upgrades, participation in carbon markets, or carbon tax payments, impacting the cost structure and operational profitability.	High / Long-term	Implement multiple energy-saving and carbon reduction measures, including adopting low-energy and high-efficiency equipment and improving resource utilization, to strengthen climate risk management and operational resilience. Three chiller units of 900, 600, and 400 tons have been successively replaced, with the 600-ton chiller scheduled for replacement in 2025.
Technical Risks Increased Costs of Low-carbon Technology Transition	With the rapid development of energy-saving and carbon-reduction technologies, failure to adopt them in a timely manner may result in a loss of competitiveness.	Switching products and services to low-carbon alternatives may increase costs.	Medium / Medium-term	Adopt low-carbon amenities and services, introducing products with lower carbon footprints (e.g., bio-based cleaning agents, recycled materials) and suppliers, to build a green supply chain.
Market Risks Changes in customer behavior Rising material costs	With increasing consumer awareness of environmental sustainability, demand for products and services is shifting.	Revenue and occupancy rates may decline, market share may shrink, and brand image could be affected.	Medium / Long-term	Procure sustainable hospitality products and launch green lodging programs to meet the needs of environmentally conscious customers. Strengthen the brand's sustainability image by showcasing sustainability initiatives on the official website, enhancing customer recognition and loyalty. Adapt sustainable strategies and service models to rising costs and regulations by offering optional low-carbon value-added services, improving revenue stability. Reduce reliance on imported materials and establish long-term partnerships with local suppliers.
Reputational Risks Corporate image	Damage to reputation reduces consumer trust.	Increases labor recruitment costs, decreases revenue, and may lead to loss of business partners.	Medium / Long-term	Comply strictly with regulations and policies, implementing standards and oversight for products and services. Implement ESG goals to ensure sustainable business operations.

Identified Risks and Opportunities	Risk Description	Potential Impact on Operations and Finances	Impact Level / Timeframe	Response Strategies and Goals
Immediate (Extreme) Risks Typhoons, Floods	Extreme weather may cause power and water interruptions or restrictions, leading to business disruption; flooding can result in property and equipment damage. Climate change may also affect the supply chain, causing raw material shortages.	Increased operational costs and reduced business performance; frequent incidents and enhanced coverage conditions may result in higher insurance premiums.	Medium/Long-term	Implement emergency response procedures to minimize property damage; install generators and uninterruptible power supply systems to prevent business interruptions. Establish vendor management for water supply, ensure adequate insurance coverage, transfer risks, and compensate for losses.
Long-term Risks Heavy Rain / Drought / Infectious Diseases	Heavy rain may cause equipment damage and revenue loss; drought may disrupt power and water supply, affecting operations.	Increased raw material procurement costs. Global infectious disease outbreaks may impact business performance.	High/Long-term	Strengthen climate resilience of facilities, prioritizing improvements to building drainage systems, rooftop structures, and heat- and drought-resistant infrastructure. Enhance health and safety management systems; establish rapid response protocols for potential future infectious disease outbreaks to ensure the safety of guests and employees while maintaining service quality.
Rising Average Temperatures	Climate change leads to higher average temperatures, water resource depletion, and sea level rise. Maintaining comfortable temperatures in operational facilities requires increased energy consumption. Impacts customer behavior and willingness to engage in outdoor activities.	Results in higher carbon emissions and energy costs, reducing operational performance. New equipment purchases increase operational costs and may affect tourist flow patterns.	Medium/Long-term	IImplement high-efficiency air conditioning and insulation systems; fully introduce smart energy monitoring systems by 2025. Develop take-out and retail product channels.

Identified Risks and Opportunities	Risk Description	Potential Impact on Operations and Finances	Impact Level / Timeframe	Response Strategies and Goals
Resource Use Efficiency	Use higher-efficiency LED lighting, replace old system pumps, and adopt dual-effect energy-saving equipment with heat pump systems.	Operational cost reduction: Energy-saving equipment and improved water efficiency reduce electricity and water expenses. Regulatory compliance cost control: As carbon pricing and emission regulations tighten, effective energy and water efficiency can prevent future carbon cost increases and penalties. Increase in fixed asset value: Modernized, energy-efficient equipment improves durability and asset valuation. Brand image and market competitiveness enhancement: Resource efficiency and green initiatives strengthen ESG image, creating brand value.	Medium/Mid-term	Equipment upgrades: Fully replace outdated high-energy equipment with variable-frequency pumps and dual-effect heat pump systems to enhance energy efficiency. Smart energy and resource management: Monitor electricity and water usage data to identify high-consumption areas and optimize adjustments in real-time. Resource recycling and sustainable supply chain standards: Implement waste sorting and resource reuse systems; integrate ESG and sustainability principles into procurement, establishing responsible partnerships with suppliers. Water-saving and carbon reduction strategies: Integrate water-saving facilities (e.g., products with water-saving certifications) and conduct employee education on energy conservation. Annual performance review: Target LED lighting adoption at 90%, 100% procurement of energy-saving equipment, 1.5% annual reduction in per-room electricity density, and 3–5% reduction in paper use and food waste.
Energy Sources	Digital technology transformation to reduce operational costs.	Operational cost optimization: Utilize digital technology to enhance energy management and operational automation, reducing labor and energy waste. Market competitiveness enhancement: Introduce renewable energy and low-carbon products to meet customer demand for green accommodations. Strengthening stakeholder relationships: Green energy and low-carbon procurement strategies attract ESG-conscious investors.	Medium/Long-term	Target 2%–5% use of renewable energy by 2030. Gradually increase low-carbon and carbon-footprint products by 2% annually.
Products and Services Consumer Preference Shifts	Consumers' preference for sustainable and eco-friendly products has increased, prompting the company to adjust its product mix and supply chain to meet demand.	Digital marketing is leveraged to expand the customer base, proactively offering ESG-compliant products and services to mitigate operational risks, while innovation and development of low-carbon products enhance competitiveness. Purchase costs may increase.	Medium/Long-term	Innovation and Sustainable Tourism Product Development: Promote low-carbon menus, carbon-footprint-labeled products, and green travel experiences to meet customers' sustainable consumption expectations. Packaging and Plastic Reduction Initiatives: Use reusable or biodegradable packaging to reduce plastic usage. Digital Transformation and New Channel Development: Conduct at least three digital marketing campaigns per month (social media, KOL) to precisely reach eco-conscious consumers; expand takeout and delivery channels using plastic-free containers combined with ESG promotion platforms. Innovation and Service: Promote sustainable lodging options; release 2–3 sustainable travel products per quarter, increase the proportion of unchanged towels over three years by 5%, and publish sustainable product stories monthly to strengthen customer recognition.
Market	In response to rising raw material costs, develop alternative materials and new products. Promote accelerated low-carbon economic transformation and develop a diversified supply chain.	Control raw material costs to enhance operational performance.	Medium/Long-term	Alternative Raw Material Development: Prioritize the use of recyclable and locally sourced eco-friendly materials to reduce dependence on imported and high-carbon materials. Local Sustainable Supply Chain: Establish an ESG-compliant sustainable supply chain, maintain stable partnerships, and increase the proportion of locally sourced ingredients and materials. Product and Service Diversification: Promote low-carbon dining, plastic-free lodging, and local cultural experiences to expand into new markets, while enhancing online sales, delivery services, and related merchandise development.
Climate Resilience	Develop the capacity to adapt, make decisions, and identify opportunities in response to risks arising from climate change and extreme weather events.	-	Medium/Long-term	Based on material risks, establish emergency response measures to minimize losses and enhance operational performance.

Climate Change Risk and Opportunity Matrix

1.5°C Warming Scenario Assumptions (Occurring within 3-5 years)

Temperature Increase >2.8°C Scenario Assumptions (10 years later)

Category	Impact Description and Financial Impact	Opportunities	Response Strategies
Transitional Risk – Policies and Regulations (Update)	In response to policies such as carbon fee levies, energy-saving and carbon-reduction mandates, and ESG compliance, low-carbon energy costs are expected to rise. If adjustments are not made in a timely manner, revenue and brand image may be affected. Some costs may be passed on to consumers, potentially weakening competitiveness; energy costs are projected to increase by approximately 10%, with an annual purchase cost increase of around NT$10 million.	Acquire high-efficiency equipment to improve energy efficiency and implement low-carbon technologies.Implement comprehensive management of water, electricity, wastewater, and waste to reduce resource wastage and strengthen operational resilience.	Set targets of 1% reduction for water and electricity consumption. Improve water reuse rates. Plan carbon reduction targets through the introduction of renewable energy. Establish supplier carbon inventory and audit mechanisms. Implement operational backup plans and management systems for energy and water resource reserves. Ensure adequate insurance coverage, risk transfer, and loss compensation. Expand digital channels (e-commerce platforms, delivery partnerships) to diversify risks, strengthen customer relationship management, and enhance repurchase rates and brand loyalty.
Physical Risk – Extreme Weather: Heavy Rain and Drought	Abnormal weather events may cause power and water supply interruptions or restrictions, resulting in business disruption and increased disaster insurance costs. Simultaneously, supply chain disruptions could lead to raw material shortages and higher costs, with raw material purchase costs projected to increase by over 5% annually, approximately NT$50 million.	Utilize digital marketing and customer relationship management to expand sales channels, broaden the customer base, and establish long-term clients to stabilize revenue.

Category	Impact Description and Financial Impact	Opportunities	Response Strategies
Physical/Transition Risk – Rising Raw Material Costs	Rising temperatures beyond expectations may disrupt the supply and demand of agricultural products and increase transportation costs, putting pressure on operational expenses.	To address this, we are building a diversified supply chain to maintain stable product quality, while enhancing independent R&D and raw material diversification capabilities.	We focus on developing new products, increasing local sourcing, and fostering stable supply chains through partnerships with small-scale farmers. Research and development prioritize readily available or alternative agricultural inputs, and long-term cooperation agreements are established with agricultural cooperatives or local institutions.
Transition Risk – Changing Consumer Habits	As consumer awareness of sustainability rises, expectations for ESG performance increase, driving higher demand for low-carbon products and services.	In response, we develop a sustainable brand image and service model to strengthen market competitiveness.	Through diversified marketing, we attract consumers, enhance product quality and sustainability value, expand catering, delivery, and takeout services, and reinforce ESG communication and engagement with customers.

Based on the identified climate change risks and opportunities, we have formulated adaptation strategies, including regulatory compliance, resource recycling and reuse, operational efficiency enhancement, energy conservation and carbon reduction, diversification of low-carbon products, and greenhouse gas emission reduction measures. These strategies aim to mitigate operational risks posed by global extreme weather events and progressively incorporate assessments of their financial impacts.
Through these measures, Regent International Hotels Group not only reduces its environmental footprint but also strengthens its resilience to the challenges of climate change, demonstrating its commitment and proactive actions as a responsible enterprise.

Greenhouse Gas Inventory

The Group has established an organizational unit responsible for promoting greenhouse gas (GHG) inventories and has developed standard operating procedures for emissions control to assist each hotel in implementing inventory tracking and carbon reduction measures. Members of this unit are required to undergo both basic and specialized training covering emission reduction strategies, energy management, energy-saving technologies, and regulatory compliance.

Hotel energy consumption primarily comes from purchased electricity and natural gas. Electricity accounts for 70–80% of carbon emissions, mainly from air conditioning and refrigeration systems, while gas usage for kitchen cooking accounts for approximately 20%, with other energy consumption contributing around 3%.

Greenhouse Gas Inventory Promotion Organization and Structure

The responsibilities of the greenhouse gas inventory promotion organization are as follows:

Manager

Approves the greenhouse gas inventory report and the identification results of indirect significant greenhouse gas emissions, and supervises the operation of the inventory team.

Executive Secretary

Supervises and provides human resource support for conducting the greenhouse gas inventory, convenes and forms an internal verification team, and reviews indirect significant greenhouse gas emissions.

Inventory Team Leader

Serves as the primary contact window for each hotel or department, handles the identification of indirect significant greenhouse gas emissions, collects greenhouse gas emission factors, prepares the greenhouse gas emission inventory and inventory report, and develops and revises relevant procedural documents and regulations for greenhouse gas inventory.

Financial Committee Member

Responsible for all accounts, provides data and receipts to the inventory team leader, and assists in verification and reimbursement.

Greenhouse Gas Emissions in Recent Three Years

Regent Taipei

Just Sleep

Silks Place Tainan

Silks Place Taroko

Category	2022	2023	2024
Scope 1: Direct Emissions (Metric Tons CO2e)	2,665.092	5,845.230	5,285.2657
Scope 2: Indirect Emissions (Metric Tons CO2e)	9,852.591	9,859.210	9,920.761
Scope 3 (Metric Tons CO2e)	Not Applicable	281.810 *	247.728
Total (Metric Tons CO2e)	12,517.583	15,986.250	15,453.7547
Revenue (Million NTD)	3,027	3,846	4,046
Emission Intensity (Metric Tons CO2e / Million NTD)	4.1353	4.160	3.8195

Regent Taipei discloses Scope 3 greenhouse gas emissions starting from 2024

Category	2022	2023	2024
Scope 1: Direct Emissions (Metric Tons CO2e)	NA	NA	415.762 *
Scope 2: Indirect Emissions (Metric Tons CO2e)	2,017.837	2,338.759	3,856.542
Total (Metric Tons CO2e)	2,017,837	2,338.759	4,272.304
Revenue (Million NTD)	383	451	552
Emission Intensity (Metric Tons CO2e / Million NTD)	5.269	5.186	7.740

Scope 1 statistics have not been conducted yet and are expected to be disclosed starting from 2024.
2024 Increase in emissions at Just Sleep Ximen Branch.

Category	2022	2023	2024
Scope 1: Direct Emissions (Metric Tons CO2e)	816	874	415.762
Scope 2: Indirect Emissions (Metric Tons CO2e)	3,792.86	4,660.071	3,856.542
Total (Metric Tons CO2e)	4,608.86	5,534.071	4,272.304
Revenue (Million NTD)	864	904	854
Emission Intensity (Metric Tons CO2e / Million NTD)	5.334	6.122	5.003

Category	2022	2023	2024
Scope 1: Direct Emissions (Metric Tons CO2e)	1,017.75	1,070.22	2,168.860
Scope 2: Indirect Emissions (Metric Tons CO2e)	2,938.03	2,999.079	1,489.374
Total (Metric Tons CO2e)	3,955.78	4,069.30	3,658.234
Revenue (Million NTD)	668	684	171
Emission Intensity (Metric Tons CO2e / Million NTD)	5.9218	5.949	21.393 *