Expanding Resource Cycle Integration Efficiency and Refining Net-Zero Action Momentum

ECOVE Environment Corporation Chairman J.J. Liao

In response to global climate change, implementing a circular economy and improving energy resource efficiency have become essential strategies for achieving net zero emissions. In alignment with the Group's ESG vision of being "Guardians of Earth's Sustainability," ECOVE, the Resource Recycling Business Group, has continuously enhanced resource recycling efficiency over the years through the promotion of four main business pillars: resource management, renewable energy, recycling, and electrical and mechanical maintenance and rectification. The pillars help the continuous enhancement of resource recycling efficiency and is the embodiment of our ideal of "Every Resource Counts."

Deepening Resource Management to Enhance Efficiency through Technology

In the field of resource management, ECOVE is one of the leading companies in the domestic market, capable of providing clients with a comprehensive range of services from upstream waste transportation, recycling, and incineration treatment to downstream final disposal. Our outstanding performance has also extended overseas, currently providing operational maintenance services for a total of 13 resource centers (11 in Taiwan and 2 in Macau). In recent years, there has been a more proactive investment in the development of next-generation energy resource centers, as well as the application of new energy-saving technologies to extend the lifespan of older plants and to incorporate applications such as the Internet of Things and cloud management, effectively enhancing operational performance. In 2024, it is estimated that ECOVE has processed approximately 2.71 million tons of waste, generating 1.53 billion kWh of electricity. The electricity generation per ton of waste has increased by approximately 8% compared to previous years, demonstrating our significant effectiveness.

In business development, ECOVE is actively pursuing climate opportunities. Recently, we secured the BOT bid for the Green Energy Sustainable Recycling Center in Chiayi City and is currently handling the design and procurement bidding. The Changbin Low Carbon Recycling and Disposal Center is undergoing environmental assessment. Internationally, we collaborated with our partners in Malaysia to secure the status of the optimal applicant for the Melaka project, and we will participate in the operational work in the future.

Seizing Opportunities in Renewable Energy to Expand Scope of Service

With the recent announcement of Taiwan's new carbon reduction targets, the demand for renewable energy among enterprises is increasing day by day. ECOVE has long invested in constructing and operating solar power plants and currently owns over 100 facilities in Taiwan and abroad. This makes us one of the few Taiwanese companies offering comprehensive services from investment and development to construction, operation, and green electricity trading. ECOVE is expanding its energy storage and green energy transfer services. We are implementing a 5MW energy storage system project in Nantou Industrial Park, supporting Taiwan Power Company's ancillary services. Additionally, we are developing the "Light Charge Storage" smart parking lot, which integrates energy storage, solar photovoltaic systems, electric vehicle charging, and other smart features. Currently, ECOVE has developed a total capacity of 164 MW in the solar photovoltaic sector, with a total maintenance capacity of 485 MW and a green electricity supply of 17 MW. The Company continues to expand its overseas achievements.

Recycling Maximizing Resource Efficiency

Enhancing recycling and reuse technologies to maximize the value of resources has become a significant direction for enterprises to invest in sustainability. In response to the waste solvent treatment generated by the development of the high-tech industry, as well as the recycling and reuse of water resources, ECOVE has been actively promoting these two major initiatives in the field of recycling and reuse in recent years.

In the area of waste solvent recycling and reuse, ECOVE's recovery and reuse of waste isopropyl alcohol (IPA) has obtained multiple patents in Taiwan and the United States. The process can concentrate the IPA to 99.9% purity or even higher, effectively enhancing product value. Currently, after obtaining the general reuse permits from the National Science and Technology Council and the Ministry of Economic Affairs, the production capacity utilization rate has reached full capacity. In the future, we will continue to focus on the research and development of electronic-grade products to facilitate the adoption of high-tech manufacturing processes. Meanwhile, we are collaborating with academic institutions to develop electronic-grade recycling technology for waste edge bead remover (EBR), with the aim of expanding related business operations.

In terms of water resources, leveraging the Group's strengths in turnkey Company Profile Corporate Governance Environmental Social Co-prosperity Appendix Sustainability projects, ECOVE can continue to undertake subsequent operational tasks, thereby providing a comprehensive service. Currently, the scope of services has expanded from industrial wastewater, urban sewage, and wastewater reuse in the high-tech electronics industry to include seawater desalination. Recent achievements include the South Taiwan Science Park Water Reclamation Plant, North District of Taoyuan, Zhongli Sewage System in Taoyuan, and the recently awarded Hsinchu Seawater Desalination Plant. In addition to protecting hydrological and ecological environments, these initiatives can also produce reclaimed water and desalinated seawater for industries, achieving a win-win situation for both the economy and the environment.

ECOVE will continue to pursue the operation and management of new government and corporate wastewater treatment plants and seawater desalination facilities. In response to high-tech industry demands, we will leverage the Group’s turnkey project capabilities to create synergies. Through recycling initiatives like reclaimed water and waste solvent recovery facilities, ECOVE aims to help high-tech parks establish zero- waste centers and provide ongoing operation and maintenance services. These business opportunities are promising.

Integration of Intelligence and Green Energy for Upgraded Maintenance and Rectification of Electromechanical Systems

The maintenance and rectification of electromechanical systems contribute to extending the service life of equipment and enhancing its operational efficiency. Recent achievements of ECOVE include: the establishment of an integrated waste solvent energy resource system for international semiconductor manufacturers, along with its operation and product sales; the expansion of a waste solvent recovery system for international memory manufacturers; maintenance projects for public facilities of internationally recognized high-tech equipment suppliers; and performance improvement and replacement projects for multiple energy resource center facilities (such as those in Taohang, Nanke, Gangshan, and Xizhou). In the future, ECOVE will continue to focus on relevant business opportunities by integrating green technology and smart technology. For instance, we will establish waste recycling facilities using advanced recycling and reuse technologies. Additionally, we will assist in upgrading and maintaining energy resource center equipment and extending its lifespan through intelligent management.

ESG for All Employees, Continuing Improvement of Corporate Sustainability

ECOVE has deeply integrated ESG into the daily work routines of our colleagues. According to a 2023 employee engagement survey conducted by an external organization, 89% of employees recognized ESG, ranking it highest among various issues. This strong ESG performance has placed the Company in the top 5% of the Corporate Governance Evaluation by the Taiwan Stock Exchange and Taipei Exchange for 11 consecutive years. Additionally, the Company was selected for the S&P Global Sustainability Yearbook member for the first time in 2025, earning recognition as one of the Industry Movers.

CTCI Group, our parent company, has adopted the Science Based Targets initiative (SBTi) and has set carbon reduction targets in accordance with the 1.5°C pathway standard. Therefore, ECOVE aims to reduce emissions by 30% by 2030, relative to the base year of 2022, and to achieve net zero emissions by 2050. Starting in 2024, the corporate headquarters started to utilize green electricity from solar power projects in central and southern Taiwan, and included "net zero" as one of the key performance indicators (KPIs) to actively promote the achievement of sustainability goals. Regarding the issue of biodiversity, in addition to issuing commitments to biodiversity and a zero deforestation policy, the purple crow butterfly has been included as a species of concern. ECOVE, collaborating with the Taiwan Purplecrow Butterfly Ecological Preservation Association, has integrated purple crow butterfly conservation into the content of environmental education. This is our way of contributing our efforts in biodiversity.

Expanding the Impact of the Circular Economy Achieving Sustainability

To achieve Net Zero by 2050, continuous effort from all sectors is essential. ECOVE aims to be the most trusted leader in sustainable resource recycling by expanding the circular economy through diversified business initiatives and integrated performance, collaborating with customers to support a sustainable global environment.