To strengthen corporate sustainability governance, Arcadyan established the CSR Committee in 2016 and upgraded it in 2020 to the Sustainability Development Committee, reporting directly to the Board of Directors. Chaired by the President and composed of senior cross departmental executives, the committee formulates sustainability strategies and mediumto long-term plans. In May 2022, the Board approved the "Sustainability Development Committee Charter", defining it as a cross-functional communication platform responsible for:
- Set sustainability policies.
- Plan annual strategic directions and action plans.
- Monitor and review execution outcomes, reporting to the Board.
- Decide on other major sustainability matters.
Arcadyan's Board of Directors regularly reviews sustainability progress to ensure alignment with business operations and provides guidance when needed. In 2024, three Sustainability Development Committee meetings were held, with updates reported to the Board. To enhance execution, a dedicated Sustainability Development Office was established to drive ESG initiatives and integrate them into daily operations.
- Reviewed 2023 sustainability performance and approved 2024 goals and plans.
- Net-zero targets approved by the Science Based Targets initiative (SBTi), aligning with the 1.5℃ pathway.
- Advanced energy transition by completing Phase II solar installation at the Vietnam plant and planning annual renewable energy certificate purchases.
- Increased use of recycled plastics and packaging to support circular product design.
- Enhanced sustainability data management to improve disclosure accuracy and reliability.
- Linked senior management compensation to sustainability performance to strengthen accountability.
- Received EcoVadis Platinum rating, recognizing excellence in corporate social responsibility
Starting in 2024, Arcadyan has integrated sustainability-related indicators into the performance targets of executive management. Linking executive compensation with sustainability performance aims to encourage leaders to prioritize corporate sustainability goals. Arcadyan evaluates the involvement and contributions of executive management to company operations and reviews the compensation system in response to external factors and regulatory changes. The President determines the allocation of executive compensation based on the achievement of performance targets and reports to the Chairman. Final decisions are made by the Remuneration Committee and the Board of Directors.
The performance target allocation for Arcadyan’s executive management is as follows:
