Nien Made cares about our customers, we do NOT ACCEPT, USE or SELL window coverings containing harmful substances. We conduct strict inspections of all incoming materials and final products, and have established stringent controls across the supply chain, such as the Management Measures for In-Coming Procurement and Inspection, Supplier Management Practices, Control Procedure of Non-conforming Products, and Product Identification Management Procedures. We require raw materials to conform to legal regulations and safe limits for toxic substances and heavy metals, in accordance with REACH and RoHS standards. We further require our suppliers to provide test reports every 3 months to ensure the safety and quality of our products at the sources.
NM cares about people and the environment. We actively reduce our environmental footprint by using FSC-certified packaging and materials, improving our water and energy efficiency, and engaging qualified waste disposal service providers. We prohibit child-labor, we provide starting salaries surpassing local statutory minimum wages and we comply with human rights norms (such as safety, anti-discrimination, working hours, no forced labor). To enhance labor-management cooperation and facilitate collective labor relations, our headquarters holds 4 labor-management meetings annually, and labor unions have been set up in our Cambodian and Mexican factories. In 2023, NM has passed 45+ external inspections of environment, emissions, water discharge, human rights etc.
NM continues to enhance quality, reduce working hours, and improve energy efficiency through lean production management. Our relative GHG management target is to reduce Scope 1 and Scope 2 emissions intensity (tCO₂e/US$mn) by 30% by 2030E compared to the 2020 baseline. This reflects our vision of using “less” resources to deliver “more” quality window coverings.
The window coverings NM manufactures and sells offer benefits in interior aesthetics, light control, and energy efficiency. As low-carbon products, they improve insulation, reducing heating needs in winter and cooling demand in summer, thereby lowering GHG emissions. This aligns with the sustainable economic activities defined under the EU Taxonomy — “Installation, Maintenance and Repair of Energy Efficiency Equipment.” In 2024, the window coverings accounted for 96.4% of NM’s consolidated sales revenue.
For example, Honeycomb shades deliver strong results — third-party testing shows summer insulation improves by 78.1% and winter heat retention by 57.1%. Based on average U.S. household electricity use and HVAC patterns, NM’s annual sales of new Honeycomb shades cut electricity use by 85+ mn kWh, equivalent to ~30,000 tCO₂e10 annually. In addition, Woodlore® shutters in the U.S. meet International Energy Conservation Code (IECC) standards and qualify as energy-efficient products, giving consumers eligibility for tax credits up to US$1,200.
To perpetuate ESG values throughout our supply chain, NM incorporates suppliers’ occupational health and safety, and compliance with human rights norms and environmental standards into the Supplier Management Practices of the plants. NM has also revised procurement contracts to include safety and environmental standards as a general guideline for supplier evaluations. ISO14001 certification are required from our PVC resin and steel suppliers. Waste service providers are obligated to comply with local government regulations for transportation and disposal. Suppliers with raw materials certified by the Forest Stewardship Council (FSC) or complying with hazardous substance safety regulations (eg: REACH or RoHS) are preferred by Nien Made. All vendors are encouraged to sign our Supplier Code of Conduct. In our "Sustainable Development Best Practice Principles", Nien Made declares avoidance of transactions with suppliers that are in conflict with our ESG policies.
In winter, due to the lower temperature near the windows, we feel particularly cold when standing close to them. Choosing a good window coverings can effectively insulate the interior (providing thermal insulation in summer) and improve our quality of life. On one hand, we innovate through window covering’s technology/materials to create a comfortable living environment. On the other hand, we also pay attention to external changes, especially extreme weather conditions, to mitigate the impact of abnormal variations on our operations.
Starting from 2023, NM has initiated climate change stress testing. We aim to detect risks in advance and identify opportunities. Following the Task Force on Climate-related Financial Disclosures (TCFD) guidelines and referring to the Intergovernmental Panel on Climate Change (IPCC - AR6 additions) scenario assumptions,
we analyzed the impact of climate change on our 10 facilities and identified risk points related to Floods (1 site to be monitored), Extreme Heat (3 sites to be monitored), Drought (2 sites to be monitored), and Extreme Cold (2 sites to be monitored). The matrix summary (Floods = 1.18, Extreme Heat = 1.78, Drought = 1.09, Extreme Cold = 1.06) indicates a Mild Severity of risk. The results have been reported to NM’s Sustainable Development Committee.
For example, using statistics from "Weathernews Inc.", we simulate flood risks at key locations. Factoring in historical flooding potential, topography/slope, and heavy rainfall, we categorize risk as high (3), medium (2), or low (1). The flood risk of the group is then calculated by weighted average. The average Physical Risk of Floods is rated at 1.18, indicating a Mild flood risk, with NO accumulated financial losses over the past 5 years. For areas with potential flood risks, NM has already implemented measures such as floodgates and water barriers to mitigate potential impacts in the future.
Based on the scenario assumptions from the Intergovernmental Panel on Climate Change (IPCC) SSP5-8.5 (representing a future with Nations
take NO Action to reduce GHG emissions and may be Unsustainable), NM's 10 facilities may experience a temperature increase of 1.6~2.4°C between 2040 and 2060. Hence, we need to be attentive to Floods (1 site), Extreme Heat (2 sites), and Drought (3 sites) risks. Additionally, due to global warming, the 2 sites currently facing Extreme Cold risks may experience reduced risk levels between 2040 and 2060. The selected risk explanation is as follows:
I. Floods:
Under the SSP5-8.5 scenario (2040~2060),
sea levels may rise by 30~60cms, and the
daily rainfall could increase by 6~13% at NM's 10 facilities.
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Sea Level Rise:
The lowest-altitude factory site among the ten locations is situated more than 100kms away from the coast, making the impact of sea
level rise a Mild-risk concern.
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Increased Rainfall:
A 13% increase in daily rainfall raises the flood risk at 1 NM site, with rainfall during the wettest month reaching 301 mm, up by 35 mm. Amidst a worst-case simulation (assumed disruptions in external transportation and government-declared work suspensions in towns in 2040~2060), the facility will experience work stoppages for 5, 10, or 15 days, resulting in maximum revenue impacts of 0.2%, 0.4%, and 0.6%, respectively. These impacts are considered Mild-risk, affecting revenue by ~NT$50mn, ~NT$100mn, and ~NT$160mn, respectively.
Under the SSP5-8.5 scenario (2040-2060), the ≥ 35°C days at NM's 10 facilities may increase by 1.6~18.7 days.
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Increase in ≥ 35°C days:
2 sites of NM may increase of 18.7 and 6.1 days of Extreme Heat. Based on simulations by the International Labour Organization under the RCP2.6 scenario for 2030, there may be a loss of working hours amounting to 7.8% (at location A) and 0.5% (at location B). To account for worst-case simulation in the SSP5-8.5 scenario (2040~2060), we have adopted a 10% reduction in working hours at location A and a 5% reduction at location B due to Extreme Heat risks. In the event of such reductions, other facilities outside locations A and B will implement temporary scheduling and contingency measures, resulting in revenue impacts still considered Mild-risk.
Using a location-specific assessment referencing global Key Biodiversity Areas (KBAs) data, NM’s sites in China (Guangdong), Cambodia, Mexico, the U.S., and Taiwan are NOT located within protected areas or regions of high biodiversity value. Biodiversity risk assessments of these sites have been incorporated into the “Sustainability Report” approved by the Board of Directors. NM also increases the procurement share of FSC-, PEFC-, and other certified wood to support forest ecosystem protection and biodiversity conservation. Potential biodiversity risks from future expansions will be continuously monitored.
Should you have any concerns, complaint or grievance, please contact our Sustainable Development Committee through the designated ESG mailbox.