Climate Change Data

Tung Ho Steel Enterprise Corporation

Climate Impact & Sustainability Data (2023, 2024)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:824,106 tCO2e/year (Scope 1+2)
Scope 1 Emissions:222,244 tCO2e/year
Scope 2 Emissions:601,862 tCO2e/year
Scope 3 Emissions:1,521,825 tCO2e/year
Renewable Energy Share:4%
Total Energy Consumption:6,248,983 GJ/year
Water Consumption:2,098.137 million liters/year
Waste Generated:341,024 tons/year
Carbon Intensity:0.407 tCO2e/ton of steel billet production (2023)

ESG Focus Areas

  • Integrity Governance
  • Economic Sustainability
  • Environmental Protection
  • Friendly Workplace
  • Social Prosperity

Environmental Achievements

  • Reduced carbon emissions by 4.5% compared with 2022 (excluding Daya Works)
  • Waste recycling rate reached 98.8%
  • Water recovery rate above 91% in all works (99.22% in Taoyuan Works)
  • First domestic steel manufacturer obtaining EPD for all steel products
  • Received Excellence Award in 2023 Net Zero Industry Competitiveness Awards and Enterprise Award in 4th Taiwan Circular Economy Awards

Social Achievements

  • Launched Alchemy Project- MELT, attracting over 300 visitors
  • Sponsored Tung Ho Steel Foundation’s activities and Kaohsiung International Steel & Iron Sculpture Festival
  • Average salary increase of 4.72%
  • More than 93% of employees joined the trade union
  • Employed 63 indigenous employees (3.1%) and 26 employees with disabilities (1.3%)

Governance Achievements

  • Renamed Corporate Governance and Nominating Committee to Sustainable Development Committee
  • Received ESG Entity Rating of “2” by Sustainable Fitch
  • Achieved Leadership Level (A-) in CDP’s Climate Change Questionnaire and Management Level (B) in CDP Water Security Questionnaire
  • Implemented ESG Bonus Measures for Senior Executives

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2050
Medium-term Goals:
  • Carbon Reduction 30% by 2030 (compared to 2005 levels)
  • RE 30 (30% renewable energy) by 2030
  • Complete the renovation of electric furnaces in Miaoli and Taoyuan Works by 2030
Short-term Goals:
  • Reduce water consumption by 15% in Miaoli Works and 20% in Kaohsiung Works by 2025
  • Achieve net-zero discharge of effluents in Taoyuan, Miaoli, and Kaohsiung Works by 2025
  • Increase rainwater recovery by 15% in Taoyuan Works and 10% in other Works by 2025
  • Reduce water intake intensity by 5% in all Works by 2025

Environmental Challenges

  • Impact of international steel prices and government measures on domestic construction market
  • Climate change risks (carbon fee collection, extreme weather, water shortage)
  • Manpower shortage and talent gap
Mitigation Strategies
  • Investment in green energy (wind, solar, biogas), equipment upgrades, process improvements
  • Development of low-carbon production technologies (no pig iron use from 2027)
  • Implementation of risk management policies and procedures
  • Active participation in international initiatives (CDP, WSA Climate Action Program)
  • Establishment of GHG management strategies, reduction targets, and plans

Supply Chain Management

Supplier Audits: 712 suppliers signed Supplier Social Responsibility Commitment; 20 suppliers completed GHG inventory and third-party verification

Responsible Procurement
  • Supplier Social Responsibility Commitment
  • Collaborative Carbon Reduction Agreement
  • Emphasis on environmental protection, climate change mitigation, labor rights, and human rights

Climate-Related Risks & Opportunities

Physical Risks
  • Tropical cyclones
  • Changes in average rainfall
  • Changes in extreme temperature
Transition Risks
  • Increased pricing of GHG emissions
  • Renewable energy regulations
  • Demand for low-carbon products and services
Opportunities
  • Recycle and reuse
  • Shift to decentralized energy
  • Incentives from financial institutions

Reporting Standards

Frameworks Used: GRI Standards, GSSB, TCFD, SASB, UN SDGs, IFRS S1, IFRS S2

Certifications: ISO 14001:2015, ISO 14064-1:2018, ISO 50001:2018, ISO/CNS 45001:2018, ISO 27001:2013, EPD

Third-party Assurance: British Standards Institution (BSI)

UN Sustainable Development Goals

  • SDG 7 (Affordable and Clean Energy)
  • SDG 12 (Responsible Consumption and Production)
  • SDG 13 (Climate Action)

Initiatives contribute to these goals through renewable energy adoption, waste reduction, emissions reduction, and sustainable supply chain management

Sustainable Products & Innovation

  • Low-carbon steel products (no pig iron use from 2027)

Awards & Recognition

  • 2023 TCSA Corporate Sustainability Report Award- Gold Award
  • 2023 Net Zero Industry Competitiveness Awards- Excellence Award
  • 2023 Taiwan Circular Economy Awards- Enterprise Award

Reporting Period: 2024

Environmental Metrics

Total Carbon Emissions:824,093 tCO2e/year (2023)
Scope 1 Emissions:222,242 tCO2e/year (2023)
Scope 2 Emissions:601,851 tCO2e/year (2023)
Scope 3 Emissions:2,345,918 tCO2e/year (2023)
Renewable Energy Share:1.78% (2023)

ESG Focus Areas

  • Climate Change

Environmental Achievements

  • Reduced total carbon emissions by 4.5% in 2023 compared to 2022 (excluding Daya Works, Taoyuan Fabrication Center, and Taichung Harbor Logistic Office).
  • Reduced emission intensity by 4.0% in 2023 compared to 2022 (excluding Daya Works, Taoyuan Fabrication Center, and Taichung Harbor Logistic Office).
  • Total energy saved and carbon reduced in 2023 amounted to approximately 42,320.9 ton-CO2e.
  • First steelmaker in Taiwan to adopt direct rolling process without reheating furnaces in 2010, significantly reducing energy consumption and air pollution.
  • Purchased RECs (Bundled REC System) of up to 22,105,058kWh from Tung Kang Wind Power Corporation in 2023, equivalent to about 1.78% of the 2023 electricity consumption.
  • Stopped using pig iron as raw material for steel refining in 2023.

Social Achievements

  • Voluntarily published its first CSR report in 2016 (won silver award).
  • Won platinum award for traditional industries in corporate sustainability reporting from the “2021 Taiwan Corporate Sustainability Awards”.
  • Earned an A- for climate change leadership and a B for water management at CDP Corporate Questionnaire 2023.
  • Awarded the Net-Zero Industry Competitiveness 2023, the highest honor in the iron and steel sector.
  • Awarded the Gold Award in the Traditional Manufacturing Industries of the Corporate Sustainability Report Awards.
  • Awarded the Outstanding Award in the Enterprise Category at the 4th Taiwan Circular Economy Awards

Governance Achievements

  • Established the Corporate Governance Committee (renamed ESG Committee) in 2019, with an “Environmental Sustainability Working Group”.
  • Passed the establishment of the “Regulations for Appropriation and Utilization of the Special Reserve for Climate Change Adaptation and Mitigation” in 2022.
  • Passed the 2030 stage targets (carbon reduction by 30% and RE30) for “Net Zero 2050” in 2023.
  • Passed the linkage of remuneration for senior officers to ESG KPIs and target establishment in May 2024.
  • All four TCFD reports have passed BSI verification and were rated Level 5+: Excellence.

Climate Goals & Targets

Long-term Goals:
  • Net-zero emissions by 2050.
Medium-term Goals:
  • Use over 30% of renewables in total electricity consumption by 2030 (RE30).
Short-term Goals:
  • Reduce carbon emissions by 30% by 2030 (compared to 2005).

Environmental Challenges

  • Increased pricing of greenhouse gas emissions.
  • Renewables regulations.
  • Transition to lower-emission services.
  • Demands for low-carbon products and services.
  • Use of low-emission energy.
  • Entry into the renewables market.
  • Use of higher-efficiency production means.
  • Changes in customer behavior (demand for carbon footprint certificates and carbon neutrality).
  • Tropical cyclones.
  • Changes in average precipitation.
  • Changes in extreme temperature.
  • Potential power outages due to extreme heat.
Mitigation Strategies
  • Using higher-efficiency furnaces.
  • Purchasing renewable energy certificates (RECs).
  • Using no pig iron in steel refining.
  • Investing in guidance and certification for EPD carbon labeling.
  • Purchasing carbon credits to achieve carbon neutrality for products.
  • Purchasing relevant insurance to transfer risk from typhoons.
  • Using water trucks to sustain operations during water shortages.
  • Implementing flexible scheduling to mitigate financial impact of power outages.

Supply Chain Management

Supplier Audits: 20 suppliers conducted GHG inventory and passed third-party verification (9.5% of total suppliers)

Responsible Procurement
  • Revised Standard Supplier Assessment Form incorporating climate-related responsibility.

Climate-Related Risks & Opportunities

Physical Risks
  • Tropical cyclones
  • Changes in average precipitation
  • Changes in extreme temperature
  • Power outages due to extreme heat
Transition Risks
  • Increased pricing of greenhouse gas emissions
  • Renewables regulations
  • Changes in customer behavior
Opportunities
  • Recycling and reuse
  • Shift toward decentralized energy generation
  • Incentives from financial institutions

Reporting Standards

Frameworks Used: TCFD, IFRS S1, IFRS S2 (2025)

Certifications: ISO 50001, ISO 14064-1, PAS 2050, ISO 14067, EPD

Third-party Assurance: BSI

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 13 (Climate Action)

Sustainable Products & Innovation

  • Low-carbon steel products made using electric arc furnaces and recycled materials.

Awards & Recognition

  • Net-Zero Industry Competitiveness 2023
  • Gold Award in the Traditional Manufacturing Industries of the Corporate Sustainability Report Awards
  • Outstanding Award in the Enterprise Category at the 4th Taiwan Circular Economy Awards