Innovation and Supply Chain
ECOVE is Taiwan's first investment holding company with a primary focus on resource cycling as its core business scope. In addition to being committed to technological innovation and actively developing patents, we have established close collaborations with the government, enterprises, and communities over the years. Upholding a corporate culture of being the "most trustworthy,"we provide excellent product and service quality. In addition, we forge positive partnerships with suppliers. While pursuing sustainable operation, we also built a sustainable supply chain that coexist and co-prosper through cooperation with suppliers.
Technological Innovation
ECOVE fosters innovation and is dedicated to the advancement of new technologies. Over the past four years, our R&D budget has steadily increased, demonstrating our company's strong commitment to technological innovation and our proactive approach to meeting the challenges of the future. Consequences that can result from momentary errors, especially during long hours of driving. It contributes to comprehensive, intelligent fleet safety management. In 2025, the R&D expenditure continued to exceed NT$11 million. This series of investments will enhance our competitiveness, and the implementation of new technologies will also create new business opportunities.
Development, Integration and Application of New Technologies
Based on its TCFD and TNFD assessments, ECOVE identifies climate- and nature-related risks and opportunities across its four major business areas. In response to these risks and opportunities, as well as the global trend of AI adoption, the Company develops and integrates new technology applications from three perspectives: reducing environmental dependencies, mitigating environmental impacts, and advancing intelligent operations through AI applications.
Establishment and Testing of A Carbon Capture Demonstration Pilot Plant
In the development of carbon capture technologies, ECOVE has introduced high-gravity rotating packed bed technology and established a carbon capture demonstration pilot plant, overcoming the limitations of conventional amine-loop packed tower systems, such as their large equipment size and constraints on site applicability. The overall system adopts a modular, highly stable, and easy-to-integrate design concept, enabling smooth integration into energy-from-waste plants, boilers, and other existing industrial sites. The system adopts a Rotating Zigzag Bed (RZB) structure, which oers advantages such as clogging resistance, stable mass transfer eciency, a small footprint, and ease of maintenance. it also integrates absorption, regeneration, and condensation units to form a closed-loop system capable of consistently producing highpurity carbon dioxide. Preliminary functional testing has been completed, and long-term operational data collection and optimization of operating parameters are ongoing to establish a more precise process model and advance carbon capture technology from the testing stage toward full-scale plant application.
Patent Acquisition and Application
ECOVE places great importance on the management of intellectual property rights, and relevant patent operations are conducted according to standard operating procedures. Additionally, an incentive system is established to encourage innovation among employees. Once the patent certificates are issued, they are publicly disclosed on the company's ocial website and briefly explained during regular management meetings, highlighting the core content and applications. In 2025, ECOVE newly obtained 2 patents, with 4 additional invention patent applications pending. Since 2007, a total of 53 domestic patents, 11 patents from Mainland China, and 1 patent from the United States have been obtained by the end of 2025. The Company also focuses on environmental sustainability and promoting occupational health and safety. Among its research and development achievements, 36 patented technologies effectively improve incinerator operation, exhaust gas treatment and recycling and reuse efficiency, thereby reducing environmental pollution and providing a competitive edge to improve operational performance.
Number of Accumulated R&D Patents Obtained over the Past Four Years
Development of Intelligent Management Tools
In response to the global digital transformation of businesses, ECOVE is dedicated to the development of intelligent solutions management, control and maintenance technologies and the implementation of advanced anagement tools. Through the use of technology automation, our goal is to increase work eciency and greatly reduce dependence on human labor. ECOVE has successfully integrated energy storage systems, solar photovoltaic technology, and electric vehicle charging stations to create a smart parking lot with solar charging and energy storage. This initiative is built upon years of rich experience accumulated through efforts in achieving net-zero transformation. Additionally, automated management technologies such as license plate recognition and parking space occupancy detection have been implemented in several large solar photovoltaic parking lots to enhance operational eciency and the level of intelligence in parking management. The advanced Energy Management System (EMS) integrated within the solar charging and storage system can conduct simulation analyses based on real-time photovoltaic generation, energy storage levels, the status of battery exchange stations, and charging piles. It intelligently optimizes charging and discharging strategies and automatically adjusts the usage ratios of stored energy, solar energy, and grid electricity, thereby enhancing energy utilization efficiency. ECOVE has implemented an automated dispatch system in its waste transportation services. By utilizing AI to assess source requirements and schedule drivers, it is estimated that approximately 780 man-hours per year can be saved. Additionally, the waste collection vehicles are equipped with advanced sensing devices to assist drivers in maintaining alertness and understanding their surrounding environment. The use of driver monitoring systems with on board cameras and sensors powered by artificial intelligence can monitor the condition and behavior of drivers. This proactive approach to driver and vehicle safety improves the prevention of catastrophic consequences that can result from momentary errors, especially during long hours of driving. It contributes to comprehensive, intelligent fleet safety management. In 2024, the Group established the Smart Innovation Department, which is responsible for the innovative development and design of AI systems for usage in plants. Upholding the Group's synergy, ECOVE has integrated the Group's development results based on operational needs. Currently implemented AI tools, such as conference voice transcription and summary helper, can significantly enhance the efficiency and accuracy when keeping meeting records. In 2024, the Group's Digital Twin system is officially implemented into the biomass energy plants. This system digitizes all design data, including lists of equipment, pipeline information, instrument configurations, design drawings, vendor documents, and operation manuals, and then integrates them into a 3D visualization model. This initiative aims to achieve paperless management and significantly enhance data retrieval and management eciency. Enhancing information retrieval capabilities through digital technology and utilizing 3D visualization techniques to present equipment maintenance status, along with real-time monitoring and visualization functions, enables project managers to quickly grasp engineering progress, ensure the completeness of data at each stage, and optimize operational and maintenance processes. In the future, ECOVE Chiayi Energy Corporation will implement the Group's Digital Twin system when establishing plants, further promoting the development of intelligent management. The Company actively introduces AI technologies into water treatment processes, developing prediction models for crystallizer pH levels and UF/RO membrane service life. These models assist onsite personnel in monitoring real-time changes in water quality and equipment status. Through data analysis and machine learning, the Company optimizes chemical dosing timing and operating strategies, thereby enhancing process stability while efficectively reducing chemical consumption and operation and maintenance costs. At the same time, by enhancing water production efficiency through optimized operations and reducing the use of consumables, the Company demonstrates tangible achievements in intelligent operations and sustainable development.
Service Quality
ECOVE has established a comprehensive and systematic service quality management process to ensure that every service meets international standards and satisfies customer needs. The Company adheres to a customer-centric philosophy, providing clients with diverse communication channels such as telephone, surveys, and project follow-ups to gain a deeper understanding of customer needs. Additionally, the Company proactively sends out surveys annually to the responsible personnel and their supervisors of ongoing projects for feedback, incorporating customer opinions into improvement plans.
Customer Communication Channels
Number of customer surveys for the past four years
In response to the relevant suggestions put forth by our clients, we have established a comprehensive process for handling customer feedback, ensuring timely responses to our clients. We require the executing units to conduct a careful and thorough analysis of the root causes of issues, propose improvement plans and processes, and enhance the general quality of customer service. In 2025, we received 7 pieces of feedback from questionnaires, primarily praising our personnel for their execution of projects. For example, they actively participated in the Company's circular economy project meetings, completed engineering tasks on time and with quality, demonstrated high levels of cooperation, and received local recognition for their diligence and effective communication with relevant agencies. Additionally, there were clients of construction projects who suggested that the Company strengthen communication and coordination with the owners, increase the owners' work tasks that the Company can assist, and reduce interface coordination with other vendors during maintenance periods to improve efficiency. The project personnel have been informed internally, and follow-up improvements have been confirmed. In 2025, there have been no verified complaints regarding violations of customer privacy.
Surveys of Customer Satisfaction
To ensure that our service quality meets customer expectations and needs, ECOVE conducts an annual customer satisfaction survey in accordance with the subsidiaries' Enhancement of Customer Service Operation Management Guidelines. This survey serves as the basis for improving our service quality. The survey covers several aspects, including occupational safety and health, work quality, execution efficiency, communication and coordination, work attitude, and professional expertise, etc. In the survey with a maximum satisfaction score of 10 points, the average score obtained in the 2025 assessment was 9.4 points, exceeding the annual target of customer satisfaction of over 9 points. In this context, we define a score of 7 or above as satisfactory. In 2025, the number of satisfied customers reached 98.2%, exceeding the target value of 90%.
Sustainable Supply Chain Management
With the vision of becoming "the most trusted leader in sustainable resource circulation," ECOVE designates the Board of Directors as the highest decision-making body for sustainable supply chain matters. The Company's supply chain management is implemented in accordance with group policies, and material matters are reported to the Board of Directors on an ad hoc basis, including the setting of medium- and long-term goals and action plans for sustainable supply chain development. As Taiwan's largest environmental resource management company, ECOVE plays an important role in helping supply chain vendors to move towards sustainability by promoting sustainable supply chain management, so as to cope with future risks and opportunities, and enhance their sustainability.
Overview of Supply Chain
In order to provide better service quality, our supply chain vendors are primarily classified into three major categories: equipment suppliers, engineering contractors, and labor contractors. These major categories of vendors provide the necessary equipment, materials, maintenance assistance, improvement project implementation, and manpower support for ECOVE's operational facilities and stations. This includes various equipment parts, consumables (including chemicals and disposable supplies), and service providers for major maintenance, emergency repairs, equipment inspections, and labor workforce. By collaborating with various suppliers and contractors, we ensure stable operation of ECOVE's daily maintenance and successful completion of various project works. The number of manufacturers and the annual procurement amount indicate that, in addition to routine equipment maintenance materials and operational consumables, ECOVE's major procurement expenses are primarily focused on maintenance, updates, and repairs to keep the equipment running smoothly and on project contracts.
To ensure eective management, we further classify suppliers by tier. Suppliers whose annual cumulative transaction amounts fall within the top 80% and exceed US $300,000, as well as suppliers of 7 specific chemicals identified as material to scope 3 emissions, including quicklime, sodium bicarbonate, activated carbon, cement, chelating agents, urea, and ammonia water, are defined as tier 1 suppliers. Among them, suppliers with annual cumulative transaction amounts of US $2 million or more are regarded as First-Tier Key Suppliers. Suppliers that score below 50 in the SAQ assessment and fall within the bottom 5% of all suppliers are classified as high-risk suppliers, for whom onsite audits and control measures will be initiated.
Supply Chain Sustainable Development Strategy
In accordance with the sustainable development strategy of the supply chain of the Group's parent company, CTCI, COVE has invited suppliers to join us in our sustainable development strategy in the five aspects of "zero tolerance for unethical conduct", "full protection of employee rights", "safety first", "local procurement" and "biodiversity". We manage vendors' information through the supplier and subcontractor section of CTCI and also provide a whistleblowing platform, thereby establishing a comprehensive communication mechanism:
Strengthening the Culture of Sustainable Supply Chain Management
To implement sustainable supply chain management, the Company actively conducts training for procurement personnel to ensure that employees possess the professional knowledge and capabilities needed to respond to climate change and decarbonization trends. The 2025 training courses covered core topics such as greenhouse gas inventory (ISO 14064-1) and net-zero pathways, with total training hours reaching 108 hours. We not only enhanced employees' professional capabilities, but also translated sustainability criteria into concrete procurement practices.
Statistics on Sustainable-related Education and Training Outcomes for Procurement Personnel in 2025
Enhancing Sustainable Risk Management
Supplier Code of Conduct
ECOVE is actively committed to promoting corporate social responsibility and developing partnerships. We adhere to the principles outlined in the United Nations Global Compact, Universal Declaration of Human Rights, and the UN Framework and Guiding Principles on Business and Human Rights. In line with these standards on human rights, labor practices, environment, and anti-corruption, we have established the "ECOVE Supplier Code of Conduct." It is applicable to all suppliers, their subsidiaries, aliates and contractors, and ECOVE continuously requires suppliers and contractors to comply with sustainable standards related to labor and human rights, health and safety, environment, ethical practices and management system. The code applies to all suppliers, including their subsidiaries, aliated companies, and contractors, who provide goods or services to ECOVE. It mandates that all their business activities, including those of their subsidiaries, aliated companies, and contractors, fully comply with the provisions of the code as well as with the applicable laws and regulations in their respective jurisdictions.
Environmental and Social Criteria Screening Mechanism for New Suppliers
ECOVE recognizes that a sustainable supply chain is central to corporate resilience. We have established a rigorous screening mechanism for new supplier admission to ensure that our partners remain aligned with the Company's ESG values
○ Comprehensive Admission Review Tools
All new vendors are required to complete and provide the "Vendor Registration ESG Self-Assessment Form" and the "Supplier and Contractor Social Responsibility Consent Form" during the registration stage. These two documents cover key indicators related to environmental protection, such as pollution prevention and control and resource conservation, as well as social responsibility, including human rights protection, labor conditions, and occupational safety. They serve as the primary basis for assessing whether suppliers meet the Company's sustainability standards.
○ Vendor's Commitments to Corporate Sustainable Management and Net Zero
To address global climate change and align with the net-zero pathway, ECOVE has further required all new vendors to sign the "Vendor's Commitments to Corporate Sustainable Management and Net Zero" since 2023. This measure not only safeguards the long-term interests of shareholders and stakeholders, but also positions the pursuit of net-zero emissions as a shared responsibility. It aims to work hand in hand with suppliers to mitigate global warming and jointly build a living environment grounded in fairness, justice, sustainability, and resilience.
○ Binding Contractual Clauses
ECOVE translates its sustainability commitments into concrete management practices by explicitly incorporating "termination clauses" into all formal contracts. If Party B, the supplier, violates its corporate social responsibility policy and causes significant environmental or social impacts, the Company may terminate or rescind the contract at any time. Through this mechanism, we effectively strengthen suppliers' implementation of their social and environmental responsibilities, ensuring that sustainability management is not merely a formality.
Sustainable Supply Chain Management Mechanisms
○ Sustainability Risk Survey
In order to assess the sustainability risk situation of suppliers and the implementation level of sustainable practices, ECOVE has issued a self-assessment questionnaire (SAQ) on sustainability risk to first-tier suppliers on an annual basis since 2024. Through an investigation across seven dimensions, the potential risks of suppliers are identified. Based on the scoring results, suppliers who score below 50 points and fall within the lowest 5% among all suppliers are classified as high-risk vendors. Subsequently, on-site visits are arranged for these high-risk vendors to help them understand the importance of the survey items and provide improvement suggestions, such as avoiding the placement of clutter near fire safety equipment and promoting the conservation of water resources, in order to further manage risks.
The 2025 SAQ assessment identified 1 high-risk supplier. The assessment dimensions, risk factors, and corresponding response measures are presented in the table below. An on-site supplier audit was conducted in 2026 for the aforementioned supplier, and the supplier was required to implement corrective actions for identified deficiencies. This was undertaken to ensure that risks are eectively identified, controlled, and mitigated, while supporting the supplier in improving and enhancing its sustainability performance. Guidance and improvement recommendations were provided to the 1 high-risk supplier, achieving a completion rate of 100%. No supplier contracts were terminated.
○ Establishment of Supplier Sustainability Capabilities
To implement the management and control of sustainability risks among suppliers, the CTCI Group hosted the "2025 Fifth Taiwan Sustainable Engineering Forum" in November 2025. The theme of the forum is "Engineering Reimagined: Net Zero Carbon × Zero Waste × Zero Distance." Renowned experts and scholars, as well as key engineering and technical service providers, were invited to participate. The forum featured keynote speeches addressing trends related to COP29, ESG, and other topics, as participants explore new international sustainability trends and collaboratively creating value chain impact. To enhance suppliers' performance on ESG issues, ECOVE actively invites suppliers to participate in sustainability-related activities such as the Sustainable Engineering Forum, lectures, and sustainability newsletters. We continue to communicate and engage with suppliers to strengthen their sustainability literacy, promoting and deepening our concept of sustainable net zero throughout the supply chain. In addition, regarding suppliers of equipment and facilities, ECOVE plans to collaborate with external consultants in 2025 through a government guidance program to assist suppliers in conducting greenhouse gas inventories and providing recommendations for energy conservation and carbon reduction. For subcontractors, ECOVE's carbon seed personnel will assist suppliers in conducting greenhouse gas inventories and providing recommendations for energy conservation and carbon reduction, with the aim of significantly enhancing the suppliers' capabilities in sustainable carbon reduction.
○ Supplier Performance Evaluation and Audit Guidance
To assess the risks and competitiveness of the supply chain, ECOVE has established a mechanism for supplier evaluation, audit, and guidance. The evaluation, assessment, and audit of supplier and contractor supply and execution quality are conducted by cross-departmental teams comprising the Procurement Center, General Managers, the Occupational Health and Safety Management Department, and onsite team leaders. These teams evaluate and assess the quality of supply and execution by suppliers and contractors. On top of listing the quality of suppliers and contractors, costs, service standards, environmental protection, OSH, and technologies into the evaluation items to ensure their quality standards and safety and health, we also uphold the spirit of PDCA, requiring suppliers and contractors to rectify their deficiencies, and we provide necessary guidance in a timely manner, so that ECOVE's supply chain can maintain the best competitive state and mitigate the risk of operational disruptions. For equipment and material suppliers, a comprehensive evaluation is conducted to assess their commitment to compliance, delivery control, product quality, defect handling, and any disputed matters. This evaluation aims to examine the overall service and quality provided by the suppliers and serves as a basis for incentivizing them and providing improvement recommendations.
Supplier Audit/Evaluation Items
As for contractors, the Occupational Health and Safety Management Department conducts periodic audits and provides guidance at various construction sites. In terms of hazardous substance use, such as chemicals, gas, and fuel use, we require all suppliers to provide information on its components, safety information, and inspection report. Contractors will also be evaluated upon completion of each contract. A total of 205 evaluations were conducted in 2025, targeting vendors whose annual transaction volume exceeded a certain threshold. The "execute-feedback" mechanism was consistently promoted to assess vendors' actual performance and provide valuable insights for future vendor selection. If the evaluation results indicate non-compliance or unsatisfactory performance, the supplier will be coordinated for improvement. In case improvement has not been made, the vendor will be listed as an unqualified vendor. Upon review and confirmation from the responsible manager, it will be included on the "List of Unqualified Vendors" and contract will be terminated. In 2025, no suppliers were subject to contract termination or suspension following evaluation.
○ Contractor Visit and Communication
As the COVID-19 pandemic subsides in 2023, the supply of essential chemical agents for energy-from-waste plants has been properly arranged, and the risks associated with procurement and storage have gradually decreased. In addition to the evaluation of the contractor's construction results conducted by the supervisors from various units, the Company also enhances its positive influence on suppliers through procurement strategies. In 2025, the Company conducted on-site visits and in-depth discussions with key equipment suppliers and subcontractors. Through the process of factory inspection, a total of 27 evaluations and audits of contractors were conducted. The audit content covered aspects such as quality, safety, and compliance with regulations, and further guidance was provided to the vendors to implement corporate social responsibility policies. The evaluation results will serve as an important reference for future procurement and contracting decisions. In the future, the Company will continue to engage in diverse interactive methods to gain a deeper understanding of the internal operations of suppliers and contractors, and to ensure that their quality management meets the established standards. For example, site visit inspections when key equipment is sent out for maintenance, inspection of customized equipment and materials prior to delivery, and on-site operation audit during annual maintenance will be conducted by quality control and safety and health teams. Through on-site inquiries and visits, we propose recommendations and assist in improvements to enhance the management and execution capabilities of our partners. In addition, for the development of new suppliers, the Company conducts a comprehensive evaluation through on-site visits. This evaluation includes assessing contracting and management capabilities, facility conditions, manpower allocation, material management, quality control, and warehouse management. These assessments serve as a reference for trial orders and subsequent collaborations, ensuring supply chain stability and overall operational effciency.
○ Green Procurement and Local Procurement
ECOVE recognizes green procurement and green consumption as essential core values in promoting sustainable development within the Company. In response to the policy on green consumption, the concept of the green living circle has been introduced into the Company. This includes implementing green procurement of environmentally friendly products that are "low-pollution, energy-saving, and recyclable," as well as adopting other green services in daily life, such as green oce environments and green transportation. In both production and daily life, ECOVE aims to achieve energy eciency, carbon reduction, and a love for the Earth as sustainable development goals.
The Green Procurement Amount in the Past Four Years
Since 2014, the cumulative amount of green procurement has exceeded NT$970 million. The major operating bases of ECOVE are all located in Taiwan; ECOVE implements the local procurement policy in compliance with the parent company's sustainable supply chain development strategy. We believe that local procurement is conducive to local economic development and can minimize the negative impact on the environment by reducing carbon emissions from transportation. Except for special machinery components, ECOVE strives to source locally without aecting the stable operations, safety, and fairness of procurement. We screen local vendors with potential for the re-engineering of worn parts and equipment and provide them the opportunities to win trial orders and improve autonomy. The spare part engineering is mostly contracted to local vendors to reduce carbon emissions and waste and to create local employment and business opportunities.
Proportion of the Local Procurement Amount in the Past Four Years
○ Supply Chain Carbon Reduction
Based on our commitment to sustainable business practices, ECOVE aims to encourage suppliers to fulfill their responsibility to protect the environment. We want to work with our suppliers to create a fair and just society and promote a sustainable living environment. In addition to requiring suppliers to provide sound employment conditions, high-quality goods, and on-time delivery, we actively invite suppliers to jointly support carbon reduction and sustainable development, based on which we set short-, medium-, and long-term targets. As of 2025, 100% of key chemical suppliers had completed self-conducted carbon inventories, and 20% had obtained ISO 14064 verification.
Short-, Medium-, and Long-Term Targets
