Interview – Fudy Turns the Tide with Transformation and Embarks on ESG Sustainable Development with the Identity of “Product Packaging Consultant”

Entering the digital age, the printing industry has been considered by many as a sunset industry. Fudy Printing Group, recognizing this potential crisis, immediately initiated a transformation, developing an integrated packaging solution that spans from design and manufacturing to processing.

With a history of over 40 years, Fudy has now established its presence in Taiwan, China, Vietnam, Thailand, and the United States, with a total of up to 2000 employees. The company operates factories for color printing, watermarking, paper boxes, shoe boxes, molded pulp products, as well as departments for design and a design research center, all engaged in global order fulfillment. Fudy proudly identifies itself as the “Product Packaging Research Institute,” serving a diverse clientele across fields such as 3C, IT, electronics, food, and sports.

Taking Initiative in ESG Implementation – Becoming a Valuable Ally in the Green Supply Chain

Fudy, a packaging company, has a profound connection with the green trend. “Between one-third and half of Fudy’s clients come from the 3C, IT, and electronics industries, which are at the forefront of the green supply chain and sustainable development. They also require Fudy to follow suit,” emphasized Wu Huiming, the General Manager of Fudy. Wu further highlighted that the urgency to “go green” applies to all businesses, including Fudy. However, Fudy stands out from its domestic counterparts by taking a leading role in independently implementing ESG (Environmental, Social, Governance) initiatives and publishing sustainability reports.

Wu Huiming further pointed out that Fudy is not a publicly listed company and is not required to be regulated by the Financial Supervisory Commission (FSC) or disclose ESG information. However, Fudy’s Chairman, Huang Lienfeng, has always been attentive to trends related to environmental protection, plastic reduction, and achieving zero carbon emissions. In 2021, upon reevaluating the company’s strategic positioning, he recognized the inseparable link between future development and the environment. As a result, he designated 2022 as the group’s “ESG Year.” Fudy has integrated all of the group’s green materials and eco-friendly practices, and actively pursued the development of more environmentally friendly materials.

In 2022, Fudy successfully completed the Responsible Business Alliance (RBA) audit, becoming not only the first printing and packaging company in Taiwan to undergo an RBA audit, but also achieving a high score of 143. This achievement showcases Fudy’s strong adherence to local regulations and compliance standards in Taiwan.

In fact, Fudy began its efforts in environmental conservation as early as the end of the last century. In 1995, they purchased an X-ray fluorescence machine to examine harmful substances in packaging materials, aiming to comply with the green environmental regulations of the EU’s REACH and RoHS. This made Fudy the first printing industry entity in Taiwan to do so.

Subsequently, Fudy invested both funds and manpower into researching and developing packaging material applications, striving to offer customers a wider range of environmentally friendly packaging options, turning each packaging endeavor into an act of care for the Earth. As early as 2012, Fudy began integrating rice husks, coffee grounds, eggshells, and plastics, attempting to create new reduced-plastic packaging materials. However, rice husks carried a scent and attracted rodents when used in trays or foam materials for product protection. Coffee grounds were prone to releasing oil, posing a risk of contaminating the products when used in plastic packaging.

Ultimately, Fudy collaborated with a biotechnology company to successfully combine eggshells with polypropylene (PP) and high-density polyethylene (HDPE). This collaboration resulted in the development of the “GEX,” an environmentally friendly packaging material that reduces plastic usage by 25% to 50%. GEX also possesses antibacterial and antifungal properties, is recyclable, and simultaneously aids egg farmers in waste reduction.

Striving to minimize plastic usage in packaging materials is one of Fudy’s current proactive goals. According to Vice General Manager Wan Xianrong, Fudy subjects all of its reduced-plastic packaging solutions, from small items like mobile phones to larger ones like servers, to tests such as vibration, impact, and high-low temperature assessments. Fudy also employs paper structures to enhance shock absorption and delay weakening in these packaging designs.

To swiftly address customer demands and expedite testing processes that often took up to ten days or a month, Fudy has decided to invest in various testing equipment. By next year, they plan to establish a laboratory in their Taipei facility that adheres to international standards set by the International Safe Transit Association. This move not only assures customers of the suitability of packaging materials recommended or produced by Fudy but also allows designers to verify the compliance of their packaging designs, thus fostering confidence in design investment and research and development.

Wan Xianrong emphasized that when customers are in the process of developing products, they collaborate with Fudy to create packaging materials. “In our role as the Product Packaging consultant, we deploy teams from our design department. Based on the cost considerations and desired outcomes presented by the customer, we devise suitable new materials, ratios, and structural designs. So by the time the customer’s product is ready, our packaging is already waiting,” Wan said.

Recently, Fudy has taken a step further by acquiring the carbon calculation software EcoImpact-COMPASS. This software allows them to calculate the life cycle environmental indicator data for various packaging solutions, providing customers with ESG-related insights. Additionally, they require all raw material suppliers to furnish Safety Data Sheets (SDS) and third-party testing reports, thereby maintaining strict control over chemical management in packaging materials from the source.

This commitment underscores Fudy’s dedication to not only providing environmentally friendly packaging solutions but also ensuring that the entire supply chain adheres to stringent ESG standards and practices.

Walking Together with E-SUN Bank: Advocating Sustainability and Expanding into Overseas Markets

Fudy has obtained various certifications including ISO 9001:2015 Quality Management System, ISO 14001:2015 Environmental Management System verification, IECQ QC080000:2017 Hazardous Substance Process Management, and G7 International Print Color Management Certification.

In response to ESG implementation, Fudy, encouraged by E-SUN Bank, has actively participated in the bank’s sustainability advocacy efforts. Wu Huiming stated that, for the sake of sustainable operation, Fudy has been actively engaging in ESG-related courses to learn about ESG practices. “When E-SUN Bank offers relevant courses, they remind us to participate, as otherwise, we would be lagging behind in terms of the information we possess,” Wu Huiming added.

Since last year, Fudy has embraced ESG practices and released a remarkable sustainability report, meticulously documenting the company’s efforts and achievements in eco-friendly packaging, carbon reduction initiatives, and corporate social responsibility.

With the assistance of expert teams from institutions like the Industrial Technology Research Institute, E-SUN Bank has helped facilitate Fudy’s transition towards environmental sustainability. Additionally, E-SUN Bank is dedicated to consolidating financial resources both domestically and abroad, aiding Fudy in its endeavors to establish a robust presence in international markets, fortifying the development of its overseas businesses.

“Fudy is profoundly grateful for the support and assistance from E-SUN Bank!” emphasized Wu Huiming. He highlighted that Fudy collectively executes ESG practices across the entire group, encompassing energy-saving measures in factories, waste recycling, environmental improvements, community engagement, enhanced employee welfare, and tailoring approaches to meet customer demands.

Furthermore, Fudy aims to increase the use of green energy sources. For instance, their Suzhou facility in China already employs solar power generation. In their factories in Bắc Ninh and Bình Dương, Vietnam, Fudy utilizes energy storage systems to capture excess heat generated by machinery, which is then stored or redirected for household purposes like heating water in bathrooms and kitchens.

Recently, Fudy has harnessed its design expertise to address the issue of stray dogs and cats causing harm to native species in Taiwan. Collaborating with animal shelters, they launched the annual design competition “Pack a Home,” encouraging all designers within the group to participate in innovative tools for adoption efforts. Fudy hopes to leverage its packaging proficiency to assist stray animals in finding forever homes, ultimately boosting adoption rates and reducing the risk of returns.

A saying often heard from Fudy to its clients is “POWER FOR THE POSSIBLE!” Similarly, Fudy is doing its utmost to embrace the various possibilities of sustainable operation.

The Responsible Business Alliance (RBA), formerly known as the Electronic Industry Citizenship Coalition (EICC), is an industry initiative that sets standards for the electronics sector and its supply chain. The primary focus of RBA is to ensure the safety of workplaces, protect workers’ rights, promote environmental responsibility, and uphold ethical business practices. The RBA was originally established under the name EICC, and it stands for Responsible Business Alliance, abbreviated as RBA.