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We Care
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 enforce stringent production standards, including 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. Suppliers are required to provide updated test reports every 3 months, while NM conducts irregular on-site assessments to ensure product health, safety, and quality at the source.

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 2024, NM has passed 60+ external inspections covering environment, emissions, water discharge, and human rights.

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, the lower temperature near windows often makes indoor spaces feel colder. Well-chosen window coverings provide insulation in winter and thermal protection in summer, improving comfort and quality of life. On one hand, we innovate with materials and technology to create comfort; on the other, we monitor external factors — especially extreme weather — to mitigate operational risks.

Since 2023, NM has conducted climate change stress testing to detect risks and identify opportunities. Following the “Task Force on Climate-related Financial Disclosures (TCFD)” guidelines and the “Intergovernmental Panel on Climate Change (IPCC — AR6 additions)” scenarios, we analyzed impacts across 10 facilities. Risks identified include Floods (1 site), Extreme Heat (2 sites), Drought (2 sites), and Extreme Cold (2 sites). The matrix summary (Floods = 1.19, Extreme Heat = 1.78, Drought = 1.09, Extreme Cold = 1.06) shows a Mild Climate Risk. Results are reported to NM’s Sustainable Development Committee.
For example, using statistics from “Weathernews Inc.”, we simulate flood risks at key sites. Factoring in historical flooding, topography, and rainfall, risks are categorized as High (3), Medium (2), or Low (1). NM’s weighted average rating is 1.19, indicating Mild Flood Risk, with financial losses less than NT$500,000 in the past 5 years. At sites with flood potential, NM has already installed floodgates and water barriers to mitigate future impacts.
Based on the IPCC SSP5-8.5 scenario (assuming nations take NO action to reduce GHG emissions and may be Unsustainable), NM’s 10 facilities may see a 1.6~2.4°C rise in temperature between 2040 and 2060. Risks include Floods (1 site), Extreme Heat (2 sites), and Drought (2 sites). By contrast, the 2 sites currently facing Extreme Cold may see risk decline as global warming progresses. The selected risk explanation is as follows:

I.  Floods:
Under the SSP5-8.5 (2040~2060), sea levels may rise by 30~60cms, and the daily rainfall could increase by 6~13% at NM's 10 facilities.

■ Sea Level Rise:
NM’s lowest-altitude facility among the 10 locations is still 100+ km inland, so the impact is rated Mild Climate Risk.

■ Increased Rainfall:
A 13% rainfall rise lifts flood risk at 1 site, with the wettest month reaching 301 mm (+35 mm). In worst-case simulations (transport disruptions, government-declared suspensions), operations may halt 5, 10, or 15 days, impacting revenue by ~0.2%, 0.4%, and 0.6% (NT$50mn, NT$100mn, NT$160mn). This remains a Mild Climate Risk.

II. Extreme Heat:
Under SSP5-8.5 (2040~2060), days ≥ 35°C may rise by 1.6~18.7 across NM's 10 facilities.

■ Increase in ≥ 35°C days:
At 2 sites, extreme-heat days may rise +18.7 and +6.1. Based on International Labour Organization (ILO) simulations (RCP2.6, 2030E), potential working-hour losses were 7.8% (site A) and 0.5% (site B). To model worst-case under SSP5-8.5, we assume 10% (site A) and 5% (site B) productivity loss. Other sites would compensate via rescheduling and contingency measures, keeping overall revenue impact within Mild Climate Risk.
Biodiversity protection is essential to NM’s long-term wood supply. Our commitment covers own operations, suppliers, and business partners, with a priority on avoiding impacts before they occur.

NM does NOT establish new operations within protected areas or Key Biodiversity Areas (KBAs) and requires wood suppliers to avoid sourcing from these areas or from land deforested or degraded after Dec 31, 2020. We conduct location-specific biodiversity risk assessments for existing sites and future expansions using global KBA data and local environmental information.

NM applies the mitigation hierarchy: Avoid → Minimize → Restore. We avoid impacts through responsible site selection and 100% traceable, geolocation-verified wood sourcing; minimize impacts through pollution controls; and restore ecosystems with local stakeholders, including stone check dams with Mexico’s National Forestry Commission (CONAFOR) and 1,000 trees planted with Cambodia’s Svay Rieng Provincial Department of Environment.

By 2040, NM targets 30% FSC-, PEFC- or other certified wood. Through risk assessment, responsible sourcing, and ecosystem restoration, we work to protect biodiversity across our operations and wood supply chain.
NM is committed to ethical marketing, advertising, and sales across all brands and markets. We provide accurate, balanced product information, avoid exaggerated or unsubstantiated social or environmental claims, do not market to children or exploit vulnerable consumers, and do not make false or misleading claims about competitors or their products.
NM sets clear rules for responsible AI use, from access control to data protection. Employees must complete training and receive authorization before using company AI tools. Confidential information, trade secrets, and sensitive data must not be uploaded; documents approved for AI use must first be anonymized, with sensitive content removed or replaced. Company AI accounts are for business use only.

IT manages AI accounts and access, including account monitoring and password changes every 6 months and when authorized users change roles or leave. Department heads oversee AI use, provide employee training, and promptly report identified risks or vulnerabilities to IT for follow-up.

NM’s CEO approves the regulations and any amendments, establishing clear accountability for responsible AI use.
NM’s privacy and personal data protection practices cover all subsidiaries and operating sites, as well as suppliers and service providers that process personal data on our behalf. The Administration Department oversees the lawful use and protection of personal data. Privacy and personal data risks are embedded in NM’s company-wide "Risk Management Policy and Procedures," approved by the Board of Directors. The Audit Department reviews personal data protection every 3 years, with the latest audit completed in 2025, while information security controls are tested annually by independent third parties. Breaches are subject to disciplinary action under NM’s "Working Rules." Clear ownership, company-wide controls, and independent testing turn data protection into daily practice.
Categories Principles Reference
Human Rights Support and respect the protection of internationally proclaimed human rights.
Make sure that they are not complicit in human rights abuses.
NM values basic human rights and complies with related laws and regulations (e.g., "Universal Declaration of Human Rights," United Nations), including prohibiting child labor, ensuring non-discrimination, and banning forced labor.
Labor Uphold the freedom of association and the effective recognition of the right to collective bargaining. In 2024, 12 Labor-Management Meetings were held, with Collective Agreement coverage averaging 48%. A labor union, Voice Cambodia Workers Union of San Feng (Cambodia) Company Limited, was established at our Cambodia facility, while our Mexico site is represented by the federally registered union Sindicato de Trabajadores Persianistas y Actividades Conexas.
Uphold the elimination of all forms of forced and compulsory labor. NM forbids forced labor, including ID detention, corporal punishment, or verbal abuse.
Uphold the effective abolition of child labor. NM verifies original IDs during hiring to prevent child labor.
Uphold the elimination of discrimination in respect of employment and occupation. To promote diversity and prevent discrimination or harassment, NM provides complaint channels, with all cases handled under the "Measures of Prevention, Correction, Complaint and Punishment of Sexual Harassment at Workplace," protecting rights and privacy.
Environment Support a precautionary approach to environmental challenges Although risks are rated as Mild Climate Risk, climate change can still impact NM’s financial performance by driving higher demand for water pumps (Floods), cooling systems (Extreme Heat), water trucks (Drought), and heating devices (Extreme Cold). Beyond lean production practices that boost quality and cut waste, NM has diversified production into regions with lower climate risks.
Undertake initiatives to promote greater environmental responsibility. NM’s 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.
Encourage the development and diffusion of environmentally friendly technologies. NM’s cellular shades are formed by gluing layers of non-woven fabrics. During this process, some suppliers used solvents that emitted VOCs such as toluene and MEK. Through R&D breakthroughs, NM introduced a zero-solvent adhesive formula, reducing solvent use by ~110 t/year and significantly cutting VOC emissions — helping suppliers enhance both production sustainability and ESG performance.
Anti-Corruption Work against corruption in all its forms, including extortion and bribery. Integrity and corruption cases are investigated under the "Measures for Whistleblowing," with summaries reported to the Board of Directors at least once a year. According to the Administration Department, NM received NO reported cases of integrity or ethics violations in 2024.
Safeguard Theme Nien Made’s Evidence Assessment/Reference
1. Human Rights Including Labour & Consumer Rights
Policy & Due Diligence NM’s Human Rights Policy, Supplier Code of Conduct and Supplier Commitment Letter apply to its operations and supply chain. NM’s 2025 materiality assessment covered 34 ESG topics and 246 questionnaires; customer health and safety, customer privacy, and marketing and labeling were among the six material topics. Supplier and internal audits provide additional monitoring. Evidence Disclosed at 2025 Sustainability Report Pages 24–28, 34, 58, 105, 110–111, 128–131
Labour Practices NM had 11,223 employees in 2025. Collective bargaining agreements covered 47% of employees on a weighted basis. Employees completed 42,771 training hours. NM reported zero fatalities, zero severe occupational injuries and 113 recordable injuries, equal to 5.1 per million hours worked. Evidence Disclosed at 2025 Sustainability Report Pages 52, 56, 58, 60–61
Grievance & Remedy NM’s Measures for Whistleblowing provide reporting channels for employees and external parties, protect confidentiality and prohibit retaliation. Cases are routed to the Management Department or Internal Audit. NM reported no critical concerns requiring communication with its highest governance body in 2025. Evidence Disclosed at 2025 Sustainability Report Pages 99, 121–123, 129, 133
2. Bribery & Corruption
Policy & Outcomes NM’s Ethical Corporate Management Best Practice Principles prohibit bribery, improper benefits and illegal political contributions. Internal Audit reviews implementation at major operating sites and reports to the Board of Directors (BoD). In 2025, 2,712 employees completed anti-corruption and business ethics training, and NM reported no confirmed corruption cases. Evidence Disclosed at 2025 Sustainability Report Pages 56–57, 99, 105, 128–129, 131
3. Taxation
Tax Governance NM’s tax principles cover timely and accurate filing and payment, commercial substance, arm’s-length pricing, document retention and monitoring of material tax developments. PwC prepares NM’s transfer pricing reports. The 2025 effective tax rate was 24.7%. Evidence Disclosed at 2025 Sustainability Report Pages 25, 30, 107
4. Fair Competition
Policy & Outcomes Article 15 of NM’s Ethical Corporate Management Best Practice Principles prohibits price fixing, bid rigging, output restrictions, quotas and market allocation. NM reported no ongoing legal actions concerning anti-competitive conduct, antitrust or monopoly practices in 2025. Evidence Disclosed at 2025 Sustainability Report Pages 128, 136
5. Assessment Status
Internal Assessment Based on the information disclosed in the 2025 Sustainability Report, no material adverse finding was identified across the four minimum-safeguard themes. The underlying sustainability indicators were subject to limited assurance by EY under International Standard on Assurance Engagements 3000 (Revised). The EU Taxonomy activity classification and this minimum safeguards assessment were not included in that assurance scope. External review planned for FY2026
Other ESG Related Publications
Procedures for Election of Directors
and Supervisors
Ethical Corporate Management
Best Practice Principles
Corporate Governance Best
Practice Principles
Articles of Incorporation
 
Regulations Governing the Board
Performance Evaluation
 
Sustainable Development
Best Practice Principles
Regulations of the Sustainable
Development Committee
Code of Ethical Conduct
 
Cybersecurity Risk Management (2025)
 
Prevention Procedures of
Insider Trading
 
Measures for Whistleblowing
 
Ethical Conduct of NM’s
Supplier
Supplier Questionnaire
(2018)
Self-Assessment of Board
Performance Evaluation (2022)
Assessment of Board
Performance Evaluation
- by 3rd Party (2019)
GHG Protocol & ISO 14064-1
Independent Verification Opinion
- by 3rd Party (2024)
 
Should you have any concerns, complaint or grievance, please contact our Sustainable Development Committee through the designated ESG mailbox. We accept anonymous reports of improper benefits or unlawful activities through this email. Under our “Measures for Whistleblowing,” we keep all reports, investigation details, and the identities of whistleblowers and investigation participants confidential. We protect these individuals from retaliation or unfair treatment. Through training, we help employees understand the whistleblowing channel and how to use it.
Sustainable Development Committee
ESG@nienmade.com.tw
(+886) 4 36000999
26F.-1, No. 98, Shizheng N. 7th Rd.,
Xitun Dist., Taichung City 407, Taiwan (R.O.C.)