Biodiversity

Biodiversity Commitment

The stability of the human l iving environment is significantly influenced by biodiversity, and the maintenance of biodiversity is key to achieving sustainable development . Whether it is the raw materials required for business operations or the necessities of daily life such as food, clothing, housing, and transportation, all rely on natural resources. However, with the accelerated development of society, natural resources are being rapidly consumed, which impacts the balance of ecosystems.
　
ECOVE recognizes the importance of biodiversity for climate stability and sustainable development. Therefore, we have formulated the "Biodiversity and Zero Logging Policy Commitment" to demonstrate our responsibility towards ecological conservation. By collaborating with upstream and downstream partners and stakeholders, we will expand our influence and commit to creating a stable and healthy ecological environment, contributing to sustainability for future generations. We commit to and implement the following actions:
　

Ecological and Environment Protection Strategies and Planning

The Environmental Protection Unit under the Sustainable Development Committee of ECOVE is responsible for the strategic planning and implementation of the nature and biodiversity strategy, covering the headquarters building and all operational sites in Taiwan. Establish short-term, medium-term, and long-term goals for biodiversity conservation. The medium-term goal is to achieve No Net Loss (NNL) and Zero Deforestation in its operation sites by 2030. The long-term goal is to achieve Net Positive Impact (NPI) and No Net Loss and Zero Deforestation in its value chain in its operation sites by 2050.
　

Natural-related Risks and Opportunities

In order to gain a better understanding of the boundaries between organizational operations and nature-related risks and opportunities, ECOVE adheres to the framework of the Task Force on Naturerelated Financial Disclosures (TNFD). Utilizing the LEAP methodology, the Company systematically assesses and discloses nature-related risks and opportunities.
　

Analysis of Ecologically Sensitive Areas and Hot Spots

To gain a comprehensive understanding of the ecological environment surrounding operating sites and confirm the interactions between the Company's business activities and ecosystems, thereby effectively pursuing ecological conservation and sustainable operations, ECOVE conducted a preliminary screening for biodiversity hotspots and ecologically sensitive areas using a 2-kilometer radius around each operating site and around supplier sites as the analysis scope. The screening determined whether sites are located within or near priority conservation areas and compiled an overview of surrounding species richness as a basis for risk identification. The analysis primarily used map data from the Forestry and Nature Conservation Agency, Ministry of Agriculture, publicly available through the Taiwan Ecological Network and Ecological Survey Database System, covering biodiversity hotspots, areas of concern and regional conservation corridors of the National Ecological Green Network, wildlife refuges and important habitats, nature reserves and nature preservation areas, as well as national parks and important wetlands. In addition, the Taiwan Biodiversity Network information from the Taiwan Biodiversity Research Institute, Ministry of Agriculture, was used as supplementary reference to identify biologically sensitive areas and biodiversity hotspots for all operational sites.
　
The identification results are shown in the table below. Where screening results indicate that a site's surroundings involve higher-sensitivity habitats or threatened species, ECOVE follows internal processes to further verify the findings and consults with experts as needed, providing the basis for subsequent management and conservation action planning.
　
In addition to continuously surveying and inventorying the natural environment dependencies and impacts at its own operating sites, ECOVE also extends nature-related risk management to its supply chain, working with suppliers to jointly protect the natural environment.
　
The inventory results show that 4 suppliers were within the scope of the 2025 review. Of these, 1 supplier site was located within 2 kilometers of sensitive areas such as conservation corridors; 0 supplier sites were located near biodiversity hotspots. Based on the inventory results, ECOVE will prioritize strengthening environmental management and operational controls for suppliers near sensitive areas, and where necessary will provide improvement recommendations or introduce relevant protective measures to reduce the potential impacts of operating activities on the natural environment, advancing the supply chain toward a more resilient and nature-positive sustainable transition.
　

Analysis of the Natural Ecosystem Dependency of Operational Locations

This risk identification operation is based on a survey form as the primary tool, combined with indepth interviews and discussions with colleagues from the operational units, ultimately resulting in the formation of a risk issue matrix for systematic analysis. This method aids in comprehensively understanding the risk issues that require heightened attention during operations.
　
The analysis results indicate a high-exposure issue―water resource scarcity―that may have a direct impact on operational efficiency and the work environment for employees. Additionally, two potential high-risk issues have been identified: "shortage of fossil fuel supply" and "shortage of chemical material supply," which pose potential challenges to supply chain stability and production continuity. In response to the aforementioned risks, we return to the operational level to establish a risk management mechanism, which includes continuous monitoring, contingency planning, and resource allocation, in order to mitigate potential impacts. Meanwhile, we are also strengthening our risk tracking and early warning mechanisms to ensure that we can quickly adjust our operational strategies in the face of future challenges, thereby maintaining stable operations and achieving sustainable development goals.
　

Analysis of the Natural Ecosystem Impact of Operational Locations

After identifying operational dependencies and potential risks, we conducted a systematic analysis using the same matrix to assess the potential impacts of business operations on the environment. The results indicate six high-exposure issues, including: emissions of air pollutants, water resource usage, direct use of fossil fuels, use of chemical resources, greenhouse gas emissions, and proximity to biodiversity-sensitive areas. These environmental impacts are not only related to resource availability and ecological balance but are also closely tied to the company's regulatory compliance and social responsibility. Furthermore, the use of indirect energy remains a high-risk issue even after adjustments. The carbon emissions from indirect energy and the proportion of renewable energy will directly impact the carbon footprint and carbon reduction targets during the operational process. Therefore, in response to this issue, we will continue to strengthen our energy management and low-carbon transformation strategies to reduce environmental impact while enhancing the operational resilience and sustainable competitiveness of the enterprise.
　

Biodiversity Compensation Program

ECOVE has long been attentive to the natural environment and ecological issues surrounding its operating sites, recognizing that in addition to advancing the circular economy and environmental protection, the Company should also actively shoulder responsibility for biodiversity conservation. Accordingly, after assessing the ecological impacts that operating activities may bring, ECOVE has gradually advanced a biodiversity compensation program, integrating local communities, professional organizations, and ecological resources. The program is structured around three core pillars: "adopting green spaces and wetlands," "advancing landscaping and ecological restoration," and "local environmental education and biodiversity promotion." The objective is to provide environmental compensation while creating additional ecological gains, contributing to the development of the natural environment and community integration in the region.
　

Adopting Green Spaces and Wetlands

ECOVE places great importance on the maintenance of the natural environment surrounding operating sites and on biodiversity conservation, continuing to demonstrate its attention to natural capital through green space and wetland adoption, environmental management, and ecological maintenance. Related activities focus on maintaining the health of existing woodlands and green spaces, preserving the good ecological function of these sites, and are supplemented by the planting of vegetation with high carbon sequestration potential that is suitable for local environments, enhancing both biodiversity and natural carbon sink potential. The area of adopted or maintained green space and wetland has reached 11,723 square meters.
　
Since 2024, ECOVE has been advancing green space adoption initiatives. ECOVE SRC has adopted approximately 4,600 square meters of green space at the Guanyin Industrial Park, continuously maintaining the environmental quality of the park, creating an attractive industrial landscape, and bringing lasting greenery and vitality to the community.
　
In 2025, the Miaoli Energy and Resources Center adopted the roadway surrounding the Changqing Forest Lotus Pond, with an adopted area of approximately 5,823 square meters. Through twice-weekly road cleaning and regular patrols, weeding, and related maintenance activities as needed, the Center continues to improve the site's environmental and biodiversity conditions and increase wildlife habitat.

The Miaoli Energy and Resources Center conducts 2 ecological surveys annually and sponsors NT$50,000 per year for landscape maintenance fees for the Zhunan Township Oce. Through continuous management and resource investment, the 2025 terrestrial plant survey results around the Miaoli plant showed significant improvement compared with the baseline year of 2012, This demonstrates that ECOVE has not only deepened positive relationships with the local community but has also progressively enhanced green coverage, ecological value, and environmental quality at the site.
　

In coordination with the CTCI Group, ECOVE continues to participate in wetland protection activities at Guandu Nature Park, supporting the maintenance of the ecological function and environmental quality of the Guandu Wetland through wetland tours, tall grass removal, and water source clearing. ECOVE has also partnered with suppliers including CTCI Chemicals to respond to biodiversity maintenance activities. In 2025, nearly 100 participants from across the Group, including employees, family members, and supplier partners, took part. According to the paper "Eect of Seasonal Baseline Selection on Estimated Annual Soil Carbon Change in Mangroves" from Taiwan Agricultural Engineers Society (https://twaes.org.tw/usb/pdf/1458_94_summary_.pdf), soil carbon sequestration in the Guandu wetland mangroves is approximately 14.85–30.30 Mg C per hectare per year, equivalent to approximately 54–111 Mg CO2e per hectare per year. This indicates that 1 hectare of Guandu mangrove wetland can sequester approximately 50–110 metric tons of CO2e per year. The Company estimates the carbon sink benefits of wetland maintenance using a per-unit-area carbon sink coecient method, taking the lower estimate from the aforementioned research as the basis for calculation. Methodologically, the calculation references carbon flux data from the wetland core area, applies the molar mass conversion factor for converting carbon to carbon dioxide (44/12), and then multiplies by the actual maintained area to estimate
the carbon sink benefit corresponding to this wetland maintenance action. Following inventory review, the actual maintained area for the year is approximately 1,300 square meters, from which a carbon sink benefit of approximately 6.5 metric tons CO2e is estimated. Through actual participation in wetland maintenance, ECOVE and its subsidiaries and suppliers have responded to Tamsui River wetland conservation, extending environmental influence from the value chain perspective and supporting
biodiversity conservation.
　

Advancing Landscaping and Ecological Restoration

While advancing green space and wetland adoption, ECOVE has also begun to focus on the integrated ecological and natural carbon sink benefits of vegetation arrangement at its sites. While enhancing landscaping and landscape quality, the Company plants vegetation with high carbon sequestration potential that is suitable for local environments, balancing habitat creation, improvement of wildlife conditions, and biodiversity enhancement. Attention to natural carbon sinks is being extended into local environmental management and ecological compensation actions.
　
In 2025, ECOVE MEC partnered with the Haikou Community Development Association to advance community landscaping initiatives and worked with the Environmental Protection Bureau to jointly organize plant sponsorship activities, supporting community environmental beautification through concrete action. In 2025, 300 osmanthus seedlings in pots were donated (NT$60,000), continuing to deepen the connection between the Miaoli Energy and Resources Center and the local community. For the carbon sink benefit of osmanthus plantings, a conservative estimate was made with reference to the Soil and Water Conservation Tree Species Carbon Storage Parameter Database of the Agriculture and Food Agency Research and Technology Development Platform, Ministry of Agriculture. As the osmanthus seedlings are planted by Haikou community residents themselves, with no actual planting area available, this estimate is not based on area but rather on tree species carbon storage parameters; each tree can store approximately 0.74 kg CO2e per year. The estimation results indicate that this batch of osmanthus plantings can sequester approximately 0.222 metric tons of CO2e per year.
　
In addition, beyond continued participation in purple crow butterfly tagging activities, in 2025 we combined plant site initiatives to contribute to purple crow butterfly conservation. We collaborated with the Taiwan Purple Crow Butterfly Conservation Association to develop tailored purple crow butterfly-friendly nectar plant planting plans for each plant site based on geographic location, climate conditions, vegetation status, and plant environment, providing "purple crow butterfly rest stops" where the butterflies can replenish energy during their southward migration to overwinter. In 2025, four plants, namely, Keelung, Houli, Xizhou, and Taitung participated, with total expenditure of NT$156,000. Within 2 to 3 months after planting, traces of purple crow butterflies and other butterfly species were observed, successfully providing a safe habitat for the purple crow butterflies' overwintering journey south and north. ECOVE further integrates its engineering expertise and works with its parent company, CTCI Corporation, to jointly develop the Ecological-Friendly Design Guidelines, translating purple crow butterfly conservation needs into practical references for plant site planning and design.

For the carbon sink benefit of nectar plant plantings, a conservative estimate was made using the biomass method. With the Formosan Eupatorium (Eupatorium formosanum) as the primary species, a total of 1,010 plants were planted within an 85 square meter area. Referencing annual biomass productivity of herbaceous plants (10 t/ha/year), a carbon content factor of 0.47 t-C/t-dry matter, and a carbon dioxide equivalent conversion factor of 3.67 t-CO2e/t-C, the annual carbon absorption potential of this planting area is estimated at approximately 0.15 metric tons CO2e. Considering that herbaceous plants are part of a short-term biogenic carbon cycle, expressing their benefit as annual carbon absorption potential is more appropriate, while also providing biodiversity enhancement and ecosystem service functions.
　

Local Environmental Education and Biodiversity Promotion

ECOVE's plant sites across Taiwan follow local environmental and community characteristics, combining external professional resources and community organization resources to continuously advance environmental education actions that integrate knowledge dissemination and participatory practice, extending sustainability principles into local life. The Tainan plant combines local natural resources and community needs to promote resource recycling and waste reuse, while the Miaoli plant integrates environmental education courses with on-site visits to the Wennei community, leading participants on tours of the Zhunan Wetland. For details on environmental education content, please refer to the chapter "Environmental Education Combined with Community Characteristics."
　
In the area of biodiversity, ECOVE has long focused on purple crow butterfly conservation, partnering with the Taiwan Purple Crow Butterfly Ecology Conservation Society to bring in external professional conservation and environmental education resources, continuing to advance purple crow butterfly ecological knowledge promotion, conservation participation, and survey research. The Company also hosts multiple environmental education seed teacher training workshops and purple crow butterfly tagging activities. For details, please refer to the chapter "Community Activities Linked to Operations."