Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circular Economy
• Renewable Energy
• Social Inclusion
• Governance

Environmental Achievements

• Reduced cement plant total carbon emissions by 34% compared to 2013
• Reduced cement plant total water usage by 24% compared to 2018
• Reduced cement plant total pollutant discharge by 14% compared to 2016
• Achieved Eco-Ports certification from the ECO Sustainable Logistics Chain for Hoping Port
• Became the world’s first cement industry member to pass BS 8001 circular economy certification

Social Achievements

• Launched the Cement Academy public welfare project, integrating environmental topics into lessons
• Donated NT$160,000 in scholarships to students at six primary and junior high schools in Meilun District, Hualien
• Opened TCC DAKA, an open, ecological, circular factory serving as a public communication platform
• Donated all DAKA profits to a local elementary school's educational fund

Governance Achievements

• Committed to the Science-Based Targets initiative (SBTi) for reducing GHG emissions
• Became Taiwan’s first traditional industry member accepted by SBTi
• Established a comprehensive risk management system
• Placed in the 6-20% group of the 6th Corporate Governance Evaluation

Climate Goals & Targets

Environmental Challenges

• Limitations in Taiwan’s regulatory framework that reduce the effectiveness of GHG emission reductions
• Cement and concrete are not considered consumer products in Taiwan, so do not qualify for carbon labels
• COVID-19 pandemic

Mitigation Strategies

• Discussions with the Environmental Protection Administration on plans to include cement products within the scope of the Product Category Rules
• Began to carry out carbon footprint surveys of bestselling Type I Cement and 3000 psi concrete
• Established the TCC Headquarters Pandemic Response Center
• Implemented business continuity planning focusing on employee care and community support

Supply Chain Management

Supplier Audits: 119 suppliers (2019)

Responsible Procurement

• ESG criteria added to new supplier selection mechanisms
• Supplier tier and type classification system
• On-site supplier inspections
• Supplier CSR risk evaluations
• Sustainability guidance

Climate-Related Risks & Opportunities

Physical Risks

• Insufficient water supply for hydroelectric power plants
• Rising global temperatures

Transition Risks

• GHG emission cap and carbon tax
• Stricter environmental policies and laws

Opportunities

• Development of energy-efficient products
• Expansion into renewable energy market
• Establishment of a global carbon asset management enterprise

Reporting Standards

Frameworks Used: GRI Standards, Mining and Metals Sector Supplement

Certifications: ISO 14001, ISO 45001, ISO 50001, ISO 14064, ISO 14046, BS 8001

Third-party Assurance: Deloitte, SGS Taiwan

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 11 (Sustainable cities and communities)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)
• Goal 15 (Life on land)

Initiatives contribute to these goals through renewable energy development, waste reduction, community engagement, and biodiversity conservation

Sustainable Products & Innovation

• Green clinker that reduces GHG emissions by 70% (Ivory Coast factory)

Awards & Recognition

• Asia’s Greenest Company of the Year
• Asia’s Best Workplace Reporting
• Green Leadership award
• Taiwan Top 50 Corporate Sustainability Award
• Top 50 Platinum Corporate Sustainability Report Award
• English Report Award
• Climate Leader Award
• Circular Economy Award
• Social Inclusion Award
• Growth through Innovation Award
• People Development Award
• International Innovation Awards eco-solution award
• First place in the Global Views Corporate Social Responsibility award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Circular Economy
• Social Empowerment
• Employee Well-being
• Governance
• Supply Chain Sustainability
• Human Rights

Environmental Achievements

• Reduced cement plants’ carbon intensity per metric ton of cementitious materials by 4.2% compared to 2016.
• Reduced cement plants' total water use intensity by 25% compared to 2016.
• Reduced total NOx emissions of cement plants by 16% compared to 2016.
• Reduced total SOx emissions of cement plants by 5% compared to 2016.
• Reduced total TSP emissions of cement plants by 43% compared to 2016.
• Achieved 100% cement plants certification coverage with ISO 14001/ISO 50001/ISO 14064/ISO 14046 management systems.
• Obtained the first carbon footprint label for cement products in Taiwan.
• 20.06% of raw materials were renewable in 2020.
• Waste heat recovered reached 11,902.4 kWh in 2020, reducing approximately 60,000 metric tons of CO2 emissions.
• Total energy saved in 2020 reached 11.57 million kWh, reducing approximately 6,000 metric tons of CO2 emissions.

Social Achievements

• Launched TCC DAKA Open Eco-Factory, attracting over 2.5 million visitors in 2020.
• 100% of DAKA admission fees contributed to the Hualien Heping Elementary School Education Fund.
• Implemented the Social Return on Investment (SROI) evaluation mechanism for TCC DAKA.
• Conducted “Summer Excursion to Hoping” sustainable tourism project.
• Organized DAKA Music Village to promote indigenous music culture.
• Implemented “Cement Handcrafts for Soccer Dreams” program.
• Launched GEMMA “Recycle with Peace (Hoping) Now!” campaign.
• Implemented “Happy Mealtime Program” for disadvantaged elderly.
• Collected supplies for elderly through employee contributions.
• Expanded Cement Academy project to new schools.

Governance Achievements

• Introduced the Task Force on Climate-related Financial Disclosures (TCFD) framework.
• Upgraded “Risk Management Team” to “Risk Management Executive Committee”.
• Established the Corporate Sustainable Development Committee.
• Introduced ISO 37001 Anti-Bribery Management System.
• Achieved a 4.9 (out of 5) score in Board of Directors performance evaluation.
• Linked executive compensation to ESG performance.

Climate Goals & Targets

Environmental Challenges

• Potential operational impacts from global warming and extreme weather.
• Costs of low-carbon technology, equipment, and management investments.
• Total emissions and carbon trading; carbon levy and carbon tax systems.
• Regulations and procurement of renewable energy.
• Decommissioning of Hoping Power Plant.
• Impact on corporate image.
• Water shortage.
• Supply chain sustainability.

Mitigation Strategies

• Implemented 7 strategies: alternative materials/fuels, process improvement, waste heat power generation, carbon capture technology, carbon sequestration afforestation, and renewable energy.
• Developed alternative sourcing strategies.
• Established a dedicated ESG department.
• Regular communication with institutional investors and the media.
• Assessment of physical risks across manufacturing sites with WRI scientific models.
• Real-time monitoring of rainfall, water levels, and water information.
• Leveraging real-time monitoring of water information to plan for countermeasures to water shortages.
• Dashboard-based management: optimized inventory and flexible arrangement of transportation.
• Introduced AI technology to promote sustainable supply chain development.
• Conducted on-site audits on 80% of Critical Tier 1 suppliers.
• Conducted GHG inventory on 100% Critical Tier 1 suppliers.

Supply Chain Management

Supplier Audits: On-site audits of 15 out of 93 Critical Tier 1 suppliers (20.16%)

Responsible Procurement

• Supplier Code of Conduct
• Supplier Safety and Health Pledge
• Green procurement policy
• Local procurement

Climate-Related Risks & Opportunities

Physical Risks

• Typhoon, flood
• Change in rainfall parameter: Water shortage
• Increased costs in transportation and equipment maintenance
• Concrete output affected due to drought

Transition Risks

• Costs of low-carbon technology
• Total emissions and carbon trading
• Regulations and procurement of renewable energy
• Decommissioning of Hoping Power Plant
• Impact on corporate image

Opportunities

• Smart low-carbon manufacturing
• Participation in carbon trading/renewable energy markets
• Competitiveness enhancement
• Expansion of new energy business
• Development and application of carbon capture technology
• Securing investors’ willingness for long-term investment

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, AA1000AS v3

Certifications: ISO 14001, ISO 50001, ISO 14064, ISO 14046, ISO 27001, ISO 37001, Tourism Factory Label (Taiwan)

Third-party Assurance: British Standards Institution

UN Sustainable Development Goals

• SDG 1: No Poverty
• SDG 4: Quality Education
• SDG 8: Decent Work and Economic Growth
• SDG 7: Affordable and Clean Energy
• SDG 13: Climate Action
• SDG 12: Responsible Consumption and Production
• SDG 17: Partnerships for the Goals

Various initiatives contribute to these goals through community engagement, education, job creation, renewable energy development, waste reduction, and international collaborations.

Sustainable Products & Innovation

• Low-carbon cement
• Carbon neutral concrete products

Awards & Recognition

• Tourism Factory Label
• National Industrial Innovation Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Resource Recycling
• Green Energy
• Biodiversity
• Sustainable Governance
• Social Inclusion
• Employee Benefits

Environmental Achievements

• Reduced carbon emissions by 5.40% (cement plants) and 8.90% (RMC plants) compared to the base year.
• Reduced air pollution emission intensity (NOx, SOx, TSP) by significant percentages compared to 2016.
• Increased energy productivity by 59.6% (cement plants) and 45.48% (RMC plants) compared to 2016.
• Treated 1.101 million metric tons of industrial waste, equivalent to 5.3% of Taiwan's total.
• Restored 284 corals with an 89% survival rate.
• Achieved a thermal substitution rate of alternative fuels nearing 50% in some plants.

Social Achievements

• Launched EARTH HELPER carbon reduction sustainability action, engaging 7,363 participants.
• Provided relief to OYAK employees affected by the Turkey earthquake.
• Invested NT$33.5 million in education initiatives.
• Implemented the Hoping Carbon Reduction Parent-Child Bankbook program.
• Created 78 new jobs in the Hoping Village.

Governance Achievements

• Established a Nomination Committee and Office of Responsibility and Sustainability.
• Achieved a top 5% ranking in Corporate Governance Evaluation.
• 100% of employees signed the Statement of Integrity and Ethical Conduct.
• Implemented an internal carbon trading platform.
• 90% of Critical Tier-1 Suppliers provided valid carbon emission data.

Climate Goals & Targets

Environmental Challenges

• Extreme weather events impacting operations.
• Supply chain disruptions.
• Carbon emissions reduction targets.
• Water resource management.
• Biodiversity risks.

Mitigation Strategies

• Developed alternative sourcing strategies.
• Implemented carbon reduction strategies (alternative fuels, renewable energy, etc.).
• Improved water use efficiency.
• Implemented Biodiversity Management Plan (BMP).
• Joined TNFD Pilot Program.

Supply Chain Management

Supplier Audits: Annual written audits to 216 suppliers, on-site inspections to 20 Critical Tier-1 Suppliers (2022)

Responsible Procurement

• Supplier Code of Conduct
• Anti-Corruption Statement
• Green Procurement Policy
• AI-powered Procurement Portal

Climate-Related Risks & Opportunities

Physical Risks

• Floods
• Droughts
• Typhoons
• Heatwaves

Transition Risks

• Carbon pricing
• Carbon emissions regulations
• Rising raw material and energy prices

Opportunities

• Development of low-carbon products
• Investment in renewable energy and energy storage
• Carbon capture technology

Reporting Standards

Frameworks Used: GRI Universal Standards 2021, SASB Standards, GCCA Sustainability Framework Guidelines, IFRS S1 and S2, TCFD

Certifications: ISO 14001, ISO 50001, ISO 14064, ISO 14067, ISO 14046, ISO 46001, ISO 45001, ISO 37001, ISO 27001, BS 8001

Third-party Assurance: Deloitte, BSI Taiwan

UN Sustainable Development Goals

• Goal 7
• Goal 8
• Goal 9
• Goal 11
• Goal 12
• Goal 13
• Goal 14
• Goal 15
• Goal 17

Initiatives aligned with various SDGs as detailed in the report.

Sustainable Products & Innovation

• Low-carbon cement
• UHPC
• UHPC energy storage containers
• Fly ash cement

Awards & Recognition

• Numerous sustainability awards listed in the report

Environmental Metrics

ESG Focus Areas

• Carbon reduction
• Green initiatives
• Renewable energy
• Resource recycling
• Low-carbon building materials
• Biodiversity
• Human rights
• Supply chain sustainability

Environmental Achievements

• Increased proportion of alternative raw materials in Taiwan cement plants from 19.07% to 22.66% (2019-2023)
• Increased calorific value replacement rate with alternative fuels in Taiwan cement plants from 0.21% to 10.2% (2020-2023)
• Increased calorific value replacement rate with alternative fuels in Mainland China cement plants from 1.25% to 13.7% (2021-2023)
• Increased proportion of cement utilization per ton in Mainland China cement plants from 17.0% to 26.78% (2021-2023)
• Launched Portland limestone low-carbon cement
• Developed low-carbon cements 1L10 and 1L15
• Developed high-power batteries for short-range passenger planes
• Developed fireproof, durable, and weather-resistant energy storage cabinets (Energy Ark)
• Achieved 171.3MW total renewable energy installation capacity
• Hoping Plant awarded Energy Saving Leadership Award 2021
• Hoping and Suao Plants obtained ISO 46001 certifications for water efficiency management systems
• Hoping Industrial Port obtained Green Port Certificate from GPAS
• Suao Cement Plant selected as 2022 outstanding greenhouse gas reduction manufacturer
• Hoping Cement Plant awarded Outstanding Award, Product Award, and Special Award for Sustainable Sorting Standards in the 3rd Taiwan Circular Economy Awards
• Won the first prize in both the "Traditional Industry" and "Environmentally Friendly" categories of the 18th Globe Views CSR and ESG Awards in 2022
• Won twin badges of the 2023 S&P Global Dow Jones Sustainability Index DJSI Sustainability Yearbook
• Won the First Gold Award in the TWBA Taiwan Biodiversity Awards in the For-Profit Business Category during 2023

Social Achievements

• Launched the "Earth Helper Carbon Reduction Sustainability Initiative"
• Organized a lecture titled "Experience the New Power of Women and Inject the Power of Life" on International Women's Day
• Launched the TCC Sustainable Learning Action Plan
• Awarded the 2022 HR Asia Best Companies to Work for in Asia Award for the second time
• Launched the "My Low-carbon Travel" campaign
• TCC DAKA Starbucks became the first community co-prosperity store in Taiwan
• Responded to a severe earthquake in Turkey with a resettlement and care plan for employees
• Held the first TCC Dragon Boat Championships
• Held a topping-out ceremony for the Gongliang Building in Hangzhou
• Engaged in cross-regional cooperation with the Hualien Forest Management Office and the River Bureau
• Launched the "Carbon Reduction Lifestyle Parent-Child Passbook" with Hoping Elementary School
• Assisted five Decathlon suppliers in making a group purchase of green electricity
• Won second place in the large enterprise group section of the 2023 Commonwealth Sustainable Citizen Award

Governance Achievements

• Established an audit committee
• Established a Remuneration Committee
• Established a Nomination Committee
• Established a Risk Management Committee
• Established a Corporate Sustainable Development Committee
• Implemented ISO 37001 anti-bribery management system
• Won honors in the 2023 Stock Exchange Annual Corporate Governance Evaluation’s Top 5% ranking
• Received full marks for its performance in promotion of the Sustainable Development Index

Climate Goals & Targets

Environmental Challenges

• High interest rates and inflation in the global economy
• Mainland China's economic recovery post-pandemic fell short of expectations
• Dependence on a single cement market
• Climate change risks (physical and transitional)
• Supply chain disruptions

Mitigation Strategies

• Green transformation emphasizing carbon reduction and green initiatives
• Diversification of revenue structure through expansion into new low-carbon cement markets and new energy sectors
• Implementation of practical systems to enhance competitiveness
• Development and launch of low-carbon building materials
• Investment in low-carbon cement in Turkey, Portugal, and Africa
• Expansion into green electricity, energy storage, batteries, charging stations, and power trading
• Active use of alternative raw materials and fuels in cement production
• Development of low-carbon cement, low-carbon concrete, and UHPC
• Development of Energy Ark energy storage cabinets
• Implementation of seven major carbon reduction strategies
• Risk management policies and principles
• Climate-related performance indicators and targets
• Six major climate actions (low-carbon cycles, disaster adaptation, supply chain collaboration, low-carbon products, research and development innovation, and new energy businesses)
• Internal carbon pricing
• Internal carbon trading platform

Supply Chain Management

Supplier Audits: 216 (2023)

Responsible Procurement

• Supplier code of conduct
• Annual sustainability questionnaires
• ESG-related education and training for suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Floods
• Droughts
• Typhoons
• High temperatures

Transition Risks

• Carbon pricing
• Carbon emission regulations
• Changes in precipitation patterns
• Extreme variations in climate models
• Rising prices of raw materials and energy
• Impact on company reputation
• Affecting the support intensity for investments, financing, and insurance by financial institutions

Opportunities

• Development of low-carbon products
• Expansion of renewable energy business
• Carbon trading
• Participation in electricity trading market

Reporting Standards

Frameworks Used: GRI Standards, SASB standards, TCFD framework, IFRS S1 and S2

Certifications: ISO 14001, ISO 50001, ISO 46001, BS 8001, ISO 45001, ISO 37001

Third-party Assurance: Deloitte & Touche; BSI

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 11 (Sustainable cities and communities)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)

Initiatives contribute to these goals through carbon reduction, renewable energy development, resource recycling, sustainable building materials, and community engagement

Sustainable Products & Innovation

• Low-carbon cement (1L10, 1L15)
• Low-carbon concrete
• UHPC
• High-power batteries
• Energy Ark energy storage cabinets

Awards & Recognition

• Energy Saving Leadership Award 2021
• Green Net Zero Mark
• ISO 46001 certifications
• Green Port Certificate from GPAS
• 2022 HR Asia Best Companies to Work for in Asia Award
• 18th Globe Views CSR and ESG Awards (first prize)
• 2023 S&P Global Dow Jones Sustainability Index DJSI Sustainability Yearbook (twin badges)
• First Gold Award in the TWBA Taiwan Biodiversity Awards