ECOVE Environment Corporation Chairman J.J. Liao

Expanding Resource Cycle Integration Efficiency Refining Net-Zero Action Momentum

In recent years, the impact of extreme climate change caused by global warming on the environment has become increasingly severe, and the United Nations has warned that the era of global warming is over and the era of boiling is approaching! How to reduce carbon emissions with more concrete actions has become the goal of all sectors. Since its establishment, ECOVE has been committed to resource recycling. In order to achieve the global goal of “Net Zero Emission”, ECOVE has actively responded to the international trend and cooperated with the government policy. In addition to the continuous technological advancement in core businesses of waste removal, renewable energy, recycling, and electrical and mechanical maintenance and rectification, we are actively developing potential business opportunities in the carbon reduction market through technological introduction and cooperation with industry and research institutes, so as to drive our business growth and continue to expand our influence on the recycling economy through excellent resource recycling efficiency and net-zero results.

Waste Removal Deepening Value Chain Integration

ECOVE has been in the field of waste removal for nearly 30 years and is the leading waste removal company in Taiwan. ECOVE possesses a comprehensive understanding of waste characteristics and is well-versed in proper waste disposal procedures. The Company have extensive experience in operating diverse types of incineration plants and conducting annual maintenance and enhancements. ECOVE offers end-to-end services to customers,
encompassing waste transportation from the upstream, recycling and reuse, incineration treatment, and final disposal downstream. In order to further implement the principles of the circular economy, we are continuously introducing innovative technologies, expanding service synergies, and improvingresource recycling efficiency.

We have actively invested in technological innovation. Taking incineration plants as an example, ECOVE have obtained more than 30 patents on incineration power generation system technologies through our circular economy business model and by combining our successful experience and expertise in incineration plant operation and management, intelligent data management, and equipment upgrades, we have been able to extend the lifecycle of our equipment. The first new-generation treatment plant in Taiwan, Taoyuan Biomass Energy Center, has been commissioned by ECOVE. The plant's incineration and power generation efficiency is as high as 27%, which is more than 30% higher than that of traditional incineration plants. In addition to incineration and power generation of wastes, the plant has also introduced the advanced anaerobic digestion technology, which treats food wastes with high water content and unsuitable for incineration, and produces biogas to generate power, and is on a par with the international standard in terms of treatment technology, energy conversion efficiency, and emission. ECOVE currently operates nine large-scale municipal incineration plants in Taiwan and two in Macau. Each year, about 2.5 million tons of waste are converted into electricity, replacing 540,000 tons of fossil fuels and providing a stable source of renewable energy for the country.

In order to continue to expand its comprehensive services, ECOVE will continue to strive for the ultimate downstream disposal of 300,000 tons of inorganic waste per year through the Changhua Coastal Low Carbon Recycling and Disposal Centre, and plan to use part of the site as a recycling plant for waste solar panels.

For business expanding domestically, in response to the problem of aging incineration facilities, decreasing capacity, and the demand for new EfW plants with high efficiency in power generation and emission reduction, ECOVE, together with its parent company, CTCI, has been awarded the right to develop the Chiayi City Green Energy Recycling Center BOT project, which will combine ECOVE's strengths in solar power with the aim of achieving
net-zero building standards for the administration building. Internationally, in response to the government's Southern Policy, we have cooperated with local complementary developers to export our rich experience in waste management and incineration to foreign markets, and we have successfully partnered with a Malaysian partner to become the most preferred applicant for the incineration plant in Melaka, with a contract to be signed in the future.

Renewable Energy Complete Diversified Energy Landscape

With strong global demand for green power, the International Energy Agency (IEA) predicts that solar power will become the world's largest source of energy by 2027. ECOVE owns and operates 100% of over 100 solar power plants in Taiwan and overseas, and is one of the few companies in Taiwan that can provide one-stop services from investment, development, construction, operation to green power trading. Currently, the total capacity of solar
photovoltaic installations is 163MW, with a maintenance capacity of 485MW.

In order to solve the problem of intermittent power generation from solar power, ECOVE had combined green power with energy storage systems, actively responded to the government's policy of introducing private sector to provide grid-assisted power services, and have successfully expanded our services to the energy storage field. For example, the 5MW energy storage system in the Nantou Industrial Park was connected to the grid in the fourth quarter of last year to participate in Taipower's frequency modulation backup service; and the “Optical Charging and Storage” project in the Southern Taiwan Science Park is an integrated energy management system that combines solar photovoltaic power, energy storage systems, and charging piles for electric vehicles.

The PV power is directly supplied to electric vehicles for charging, and the remaining power is stored in the storage system for backup use in order to provide all-time high-quality charging services. In the electricity sales segment, in response to the large amount of green power demand generated by the corporate green power commitments and the Large Consumers Clause, ECOVE has entered into green power resupply contracts with enterprises, with a resupply volume of approximately 16MW at present and a steady increase in transaction volume. By resupplying electricity for use by organizations or enterprises, ECOVE has been able to satisfy their demand for green power to assist them in meeting their net-zero planning targets.

In terms of business development, domestically, ECOVE relies on Taiwan's 2025 policy of establishing 20GW of solar photovoltaic power. The company continues to invest in and develop solar photovoltaic projects. Internationally, the Company has expanded its cooperation with the acquisition of 100% ownership of the Lumberton solar power plant in
New Jersey, USA; a MOU for renewable energy procurement cooperation was also signed with the New Jersey Institute of Technology last year. Moving forward, the Company will continue to utilize the local advantages of America division within the Group to actively pursue the expansion of Phase II of the Lumberton plant and explore further investment opportunities. The goal is to become a major investor in large-scale photovoltaic and energy storage in the United States.

Recycling Maximizing Resource Efficiency

Under the trend of circular economy, Taiwan has announced the “2050 Net Zero Emission Pathway”, which includes “Zero Waste Resource Recycling” as one of the 12 key strategies to guide the green transformation of industries. ECOVE is dedicated to maximizing the efficiency of all resources. In recent years, two major initiatives have been focused on the treatment of waste solvents generated by high-tech industries and the recycling of water resources.
Focusing on waste solvents in the high-tech industry, we have obtained a number of patents on waste isopropyl alcohol (IPA) recycling and reuse technology. About 4,000 tons of industrial-grade isopropyl alcohol was recycled and reintroduced into supply chian in 2023. We continue to research and develop electronic-grade products, and we have been able to concentrate them to 99.9% or even higher purity for reuse in high-tech factories. In addition, ECOVE is also actively working with academic institutions on the development of electronic reuse technology for EBR to expand its service scope.In response to the demand for self-established downsizing, waste reduction, and recycling systems in the high-tech industry, ECOVE has expanded its solvent waste treatment services beyond its successful proprietary waste isopropanol recovery plant. Embracing the concept of lifecycle carbon reduction, ECOVE now offers facility installation services, providing customized solutions to assist numerous domestic businesses in establishing their own solvent waste recovery systems according to their needs and on-site conditions. This initiative aims to reduce carbon emissions generated from waste transportation and optimize the use of materials and energy in the recycling process, thus lowering carbon emissions throughout the reuse process.

In the field of water resources, ECOVE's operation of wastewater treatment and water recycling plants have expanded beyond industrial wastewater and urban sewage to include the reuse of wastewater from the high-tech electronics industry. For instance, we recently took over the operation and management of the 'S.T.S.P. Reclaimed Water Plant' carried out by its parent company, CTCI Group. This project is the world's first water plant that recycles industrial wastewater for use in semiconductor processes. ECOVE has received high praise from customers for its reliable water supply and clean water quality, both of which are crucial indicators. In the future, apart from pursuing investment in and operation of reclaimed water treatment plants and seawater desalination plants, ECOVE will also respond to the demand of the high-tech industry for a circular economy by combining all recycled resource, assisting enterprises in creating zero-waste and providing operation and maintenance services.

Electrical and Mechanical Maintenance and Rectification Expanding the Scope of Meta-services

With nearly 30 years of service experience in investment, operation, supervision and management, annual renovation or upgrade of system equipment in more than 30 incineration plants at home and abroad, ECOVE is familiar with the characteristics of various waste treatment facilities and uses the concepts of life cycle and circular economy , throughgood planning, we provide customers with efficient, low-carbon, and environmentally friendly rectification and life extension services. The Company has provided tailor-made renovation projects for a number of incineration plants in Tainan, Xizhou, Gangshan, the Southern Taiwan Science Park Resource Recycling Center, and the Taoyuan Airport, giving a new lease of life to the old plants.

Under the trend of circular economy, in response to the demand of high-tech industries to set up their own capacity reduction and waste reduction and reuse systems, based on the success of its own waste Isopropyl alcohol recycling plant, and using the concept of life-cycle carbon reduction, ECOVE has expanded its waste solvent treatment services to include the provision of facility setups, and has assisted a number of domestic companies to set up their own waste solvent recycling systems according to their needs and factory conditions, in order to reduce the carbon emissions from the transportation of waste and optimize the use of materials and energy in the reuse process.

Railway construction is one of the major infrastructure projects in Taiwan, and high-tech industry is one of the core economic development areas. In response to this trend, ECOVE has extended its services to include E&M maintenance in the high-tech and transportation sectors, with a proven track record of success, including the maintenance of public utility systems for the high-tech industry, the core E&M systems of the Kaohsiung Metro and the Danhai light rail, as well as the equipment of the passenger boarding bridge of the Taoyuan Airport's Terminal 1, amongst others. In the future, ECOVE will focus on the dynamic testing of track construction and the subsequent maintenance of mechanical and electrical equipment related work opportunities. In addition, together with the Group's overall strategy of expanding high-tech industries, the Group will strive for business opportunities in the maintenance of its water, gas and electricity utilities, operation and rectification services, and will continue to expand the scope of mechanical and electrical maintenance services.

ESG for all employees, continuing improvement of corporate sustainability

ESG, which stands for Environment, Social, and Governance, is the driving force behind sustainable business operations and is also a core aspect of ECOVE's corporate culture.
ECOVE was the first to introduce the BS8001 Circular Economy Guide and obtained the world's first BS8001 Circular Economy Certificate in 2017, demonstrating their commitment to corporate governance. We has strengthened its corporate governance to enhance its adaptability and resilience in the face of the global sustainability wave, and has continued to enhance information transparency, improve its operations and protect shareholders' rights. ECOVE has been awarded the Top 5% Corporate Governance Rating for 10 consecutive years by TWSE and TPEx.

In terms of environment, ECOVE has conducted an assessment of the environmental aspects through the 'Task Force on Climate-related Financial Disclosures Recommendations Compliance' audit to evaluate the risks and opportunities associated with climate change. The Company have developed response strategies and are in compliance with regulations for establishing waste-to-energy power plants with an energy recovery efficiency of over 25%. We also involved in renewable energy and recycling businesses. In line with the Group's 2050 net-zero target, we continue to invest in green initiatives and operational services related to resource recycling and renewable energy. Since 2022, we have conducted comprehensive carbon audits and obtained external verification for our consolidated subsidiaries. Additionally, we have applied for carbon footprint certifications for waste incineration services. Currently, our Keelung, Miaoli, Xizhou, and Gangshan EfW plants have obtained product carbon footprint certifications, with Xizhou EfW plant having the lowest carbon emissions service nationwide. We are also committed to biodiversity issues. 

In addition to announcing policies on biodiversity and zero-deforestation commitments, we have also included Taiwan's distinctive Purple Crow Butterfly and Small-leaved Barringtonia in our list of species of concern, so as to contribute to biodiversity.
In terms of social aspect, ECOVE has been committed to enhancing employee welfare. Since September 2023, maternity leave has been extended from 8 weeks to 10 weeks, and paternity check-up leave and paternity leave have been extended from a combined 7 days to 10 days. This initiative aims to ensure peace of mind for employees during childbirth, enabling them to care for the next generation and thereby enhancing national competitiveness. Furthermore, we continue to develop employee skills. In 2023, employees collectively participated in training courses totaling approximately 22,848 hours. Additionally, we conduct biennial engagement surveys to understand employees' attitudes and feelings towards the work environment, allowing ECOVE to continuously improve and create a better workplace. Externally, we focus on three main pillars: "Community Activities Linking Operations," "Long-term Community Building," and "Corporate Volunteering and Community Enhancement." We are committed to environmental education through long-term investments. We have established five environmental education facilities to cultivate green future. For six consecutive years, we have implemented the "Step by step: Factories for Sustainable Environmental Education" program, fostering environmental awareness among students. Our teaching integrates practical SDGs concepts and current environmental issues, making learning enjoyable and applicable to daily life. In community interactions, we encourage colleagues to participate in volunteer activities as a tangible way to give back to society. In 2023, a total of 520 participants contributed 3,808 hours towards community service, focusing on supporting local disadvantaged groups and demonstrating our commitment to social welfare.

Expanding the Impact of the Circular Economy Achieving Sustainability

Toward the goal of Net Zero by 2050, we need continuous efforts from all sectors. In order to become the most trusted leader in sustainable resource recycling, ECOVE will continue to expand the impact of the circular economy through diversified business promotion and integrated performance, and work with our customers to contribute to a sustainable global environment.