ECOVE is Taiwan's largest environmental resource management company. 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 Reliable," 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 co-exist and co-prosper through cooperation with suppliers.

Development, Integration and Application of New Technologies

In response to the global trend toward net-zero carbon emissions, ECOVE is actively expanding the synergies of its existing development items. These projects include waste management, renewable energy, recycling and reuse, and electromechanical maintenance and improvement. In addition, ECOVE is committed to exploring high-value technologies and policy adjustments. Carbon capture technology has been developed through experimentation and simulation to identify key parameters that affect carbon capture efficiency. This technology can also be applied to other industrial sectors for flue gas treatment, helping to reduce the potential impact of climate change. To optimize processing efficiency, increase the value of waste resources, improve energy production efficiency, and implement various applications of energy storage systems.
ECOVE continues to advance research and development in the recycling and reuse of electronic grade isopropanol (IPA) from semiconductor industry, contributing to sustainable practices within the sector, and has been granted a patent in 2023 for the invention of the Propagandist Regeneration System and Process. This process can concentrate the product to a purity level of 99.9% or higher through valorization and will be introduced in the high-tech industry in the future. ECOVE aims to improve the efficient use of resources through the development, integration and application of new technologies. This will expand the scope of recycling and indirectly reduce reliance on conventional fossil fuels, ultimately contributing to the global goal of achieving net-zero carbon emissions.

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 management tools. Through the use of technology automation, our goal is to increase work efficiency and greatly reduce dependence on human labor. For example, in order to introduce video tools and upgrade the management system of intelligent solutions to remotely perform inspection, guidance, and auditing tasks, the traditional Wi-Fi signal at the incinerator site is easily affected by transmission speed and bandwidth interference. However, through testing, it was found that the new generation Wi-Fi can overcome these obstacles, improve the existing signal problems within the plant, and serve as a basis for subsequent implementation planning.
In addition, the type of waste brought to the incinerator varies. Currently, the waste is mixed based solely on the visual judgment of the crane operator. Therefore, there is a need for continuous monitoring and development of an unmanned waste and ash crane system. It is proposed to improve the automation of the work through remote control. Developing image recognition analysis for identifying materials in the feeding hopper aims to alleviate the pressure on garbage crane operators. The goal is to receive abnormality alerts promptly, enabling the activation of relevant contingency measures at the earliest possible moment.
And we are working with the school to develop technology and tools to accurately measure the gaps between heat exchanger tubes. The goal is to minimize tube bursts and boiler downtime. Due to the rapid growth of solar power plants, any abnormalities in the modules can lead to operational losses. By using drones to take pictures, the photos can be analyzed using AI modeling software to detect abnormal modules in a timely manner. This increases the efficiency of manually identifying abnormalities and can serve as an operational tool.
With the introduction of CTCI's Digital Twin System, we aim to improve the efficiency of data retrieval through technology. The system will present equipment in a 3D digital visualization, reducing the need for manual data input and improving the management functions of operation and maintenance automation.
In the waste hauling industry, ECOVE uses advanced vehicle sensors to help drivers stay alert and aware of their surroundings. 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.

R&D Results - Patented Technologies

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. This series of investments will enhance our competitiveness, and the implementation of new technologies will also create new business opportunities.

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 official website and briefly explained during regular management meetings, highlighting the core content and applications. ECOVE has recently acquired six patents in 2023. These patents include the "Carbon Capture and Fly Ash Sodium Salt Recycle Carbonate Utilization System for Incineration Plants," "Isopropanol Regeneration System and Method," "Environmentally Friendly Fireproof Core Board" "Windproof Mechanism for Solar Panels," "Integrated Solvent Recycling Process System," "Method and System for Carbon Dioxide Capture from Flue Gas Using Sodium Hydroxide Solution for Sodium Bicarbonate Production." By the end of 2023, ECOVE had accumulated 50 domestic patents, 11 patents in China, and 1 patent in the United States. The majority of these patented technologies are actively applied in operations. ECOVE also focuses on environmental sustainability and promoting occupational health and safety. Among its research and development achievements, 35 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 R&D Patents obtained over the past four years

Service Quality

ECOVE provides diversified services with professional technology and the spirit of excellence, and looks forward to becoming the best support and partner of customers. We prioritize sustainable business practices in serving our customers. In addition to providing various communication channels, we actively collect feedback by sending questionnaires to project managers and their supervisors for ongoing projects. This enables us to understand our customers' opinions. When we receive relevant suggestions from customers, we have established a comprehensive process for handling them. We provide prompt feedback and require the relevant units to analyze the root causes of the issues and propose improvement plans and processes to enhance the overall quality of customer service. In 2023, we received 24 customer suggestions. The feedback mainly focused on recognizing the performance of our employees in project execution, including professionalism, diligence, high quality of task completion, positive attitude, assistance in solving difficult tasks, and high level of cooperation. There was also a customer feedback on a project that mentioned a communication problem that caused a delay in resolving a malfunction. We have already informed the project team and confirmed the follow-up improvement actions

Customer Communication Channels

Number of customer surveys for the past four years

Workflow of customer (owner) suggestion

Surveys of customer satisfaction (Business department)

To ensure that the quality of our services meets the expectations and needs of our customers, ECOVE conducts an annual customer satisfaction survey among all customers of ECOVE Environment Service Corp., ECOVE Miaoli Energy Corp., ECOVE Wujih Energy Corp., ECOVE Solar Energy Corp., ECOVE Waste Management Corp., ECOVE Sovent Recycling Corp. and SINOGAL. This survey serves as the basis for improving our service quality. The survey covers six main areas, including occupational safety and health, work quality, execution efficiency, communication and coordination, work attitude, and professional expertise. In the survey with a maximum satisfaction score of 10 points, the average score obtained in the 2023 assessment was 9.3 points, exceeding the annual target of customer satisfaction of over 9 points In the future, we will continue to improve, with the total average score of 9 as the minimum standard, to provide even better quality and well-rounded service.

Customer satisfaction survey results for the past four year

Sustainable Supply Chain Management

With the vision of "The most reliable provider of industry-leading ‘resource cycling’ services", ECOVE, as Taiwan's largest environmental resource management company, plays an important role in helping supply chain vendors to move towards sustainability by promoting and implementing sustainable supply chain management, so as to cope with future risks and opportunities, and enhance their sustainability.

Overview of supply chain

ECOVE provides services in four main areas: waste disposal, recycling and reuse, renewable energy and mechanical and electrical maintenance and improvement. Our primary focus is on the incineration and related facility maintenance management of waste delivered by government agencies and other clients, with the aim of generating electricity through cogeneration. Our supply chain vendors are primarily classified into three categories: equipment suppliers, engineering contractors, and labor contractors. They 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.

Sustainable supply chain development strategy

In accordance with the sustainable development strategy of the supply chain of the Group's parent company, CTCI, ECOVE has invited suppliers to join us in our sustainable development strategy in the four aspects of "zero tolerance for unethical conduct", "full protection of employee rights", "safety first", and "local procurement". We manage vendors' information through the supplier and sub-contractor section of CTCI and also provide a whistleblowing platform, thereby establishing a comprehensive communication mechanism.

Sustainable supply chain development policy

ECOVE believes that the consensus and collaboration of the entire supply chain regarding sustainable development are crucial for the overall industry to move towards sustainability. Therefore, we continuously require suppliers and contractors to fully comply with all relevant local laws and regulations. In line with international initiatives and requirements, we aim for suppliers/contractors to actively participate in and implement social responsibilities. To reduce operational risks and operating costs for both itself and suppliers or contractors, thereby establishing a solid, reliable, and sustainable partnership for mutual growth.
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 requires suppliers 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, affiliated companies, and contractors, who provide goods or services to ECOVE. It mandates that all their business activities, including those of their subsidiaries, affiliated companies, and contractors, fully comply with the provisions of the code as well as with the applicable laws and regulations in their respective jurisdictions.

Strengthening ethical business conduct

In response to the Group's efforts to strengthen the ethical business management with vendors, during interactions with vendors, such as requesting for quotations, tender meetings, going through ordering procedures, etc. we will express CTCI's and ECOVE's resoluteness in ethics by means of words, written and verbal. Prior to a tender meeting, we will execute Integrity Moment actions, explaining the contents of the Supplier Code of Conduct to vendors, informing the prohibition of private interests, and providing information to the whistleblowing mailbox. The implied covenant of good faith and fair dealing is also added to purchase orders to vendors and engineering commission contracts.

Sustainable supply chain management mechanisms

Vendor's Commitments to Corporate Sustainable Management and Net Zero

To jointly implement corporate social responsibility with suppliers and encourage their compliance with relevant CSR and environmental issues, ECOVE refers to the International Labour Organization (ILO) conventions and the Social Accountability 8000 standard (SA8000). In 2014, ECOVE developed the "Social Responsibility Commitment" and actively invited suppliers and contractors to sign it. The commitment covers aspects such as ethical behavior, human rights protection, and environmental preservation. Both parties pledge not to impede freedom of association for employees, refrain from employing child labor, respect the rights of indigenous peoples, and refrain from engaging in any activities that harm human rights. The ECOVE Supplier Code of Conduct, revised in 2023, covers several key areas, including occupational health and safety, reducing greenhouse gas emissions, achieving net zero emissions, preserving biodiversity, and preventing deforestation. Along with it, all contracts include the clause "The contract may be terminated or rescinded at any time by the Company if Party B has violated its corporate social responsibility policy and has caused a significant negative impact on the environment and society" to reinforce the actual implementation of the undertaking of social responsibility.
In order to fulfill its corporate sustainability responsibilities, ECOVE will require all new suppliers to sign the "Vendor's Commitments to Corporate Sustainable Management and Net Zero" agreement starting in 2023. Alongside maximizing shareholder benefits, ECOVE also prioritizes the rights and interests of relevant stakeholders, adheres to socially recognized ethical norms, and promotes net zero emissions to address the impact of climate change and mitigate global warming. The Company aims to work collaboratively with all stakeholders to create a fair and equitable society and a sustainable living environment.

In order to improve the procurement team's understanding of sustainability issues, ECOVE actively organizes sustainability training for its employees. These training courses are tailored to the specific needs of the company and aim to increase the awareness and expertise of employees in the area of sustainability and to enable them to apply this knowledge in their daily procurement activities.

Supplier Evaluation, Audit, and 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 on-site 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 Criteria

As for contractors, the Occupational Health and Safety Management Department conducts periodic audits and provides guidance at various construction sites. In terms of the use of hazardous substances such as chemicals, gas, and fuel, suppliers are required to provide information on the components, safety information, and inspection report. Contractors will also be evaluated upon completion of each contract.
A total of 214 evaluations were conducted in 2023, 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. 

Contractor Visit and Communication

In 2023, as the pandemic eases, arrangements have been made for the critical supply of medicines to waste incinerators, and the crisis in procurement and storage is gradually easing. We aspire to exert a positive influence on the vendors through procurement practices other than via the evaluation of construction results of the contractors by the supervisors of various units. In 2023, visits and interactions were conducted with key equipment and material suppliers/contractors. Through factory inspections during project implementation, 56 evaluations and visits were carried out. Apart from auditing the quality, safety, and regulatory compliance at the suppliers' premises, further guidance was provided to ensure the implementation of corporate social responsibility policies. The evaluation results from these visits to supplier factories can serve as a reference for future procurement and contracting decisions.
In the future, there will be continued efforts to understand the internal operational practices of suppliers/contractors through various interactive opportunities and to verify their quality management. 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 of quality and safety during annual maintenance. Through these on-site inquiries and visits, suggestions are provided, and assistance is offered to facilitate improvement.
The development of new suppliers involves assessing their contracting and management capabilities through actual site visits, understanding their company facilities, manpower, materials, quality, warehouse management, etc., as references for trial orders.
To facilitate the control and management of sustainable risks for enterprises, CTCI will host the "2023 Third Taiwan Sustainable Engineering Symposium" in December 2023. Distinguished experts, scholars, and key engineering and technical service providers will be invited to participate in the forum and jointly explore global sustainable trends. The forum will focus on three key themes: net-zero EPC, resource recycling, and social influence, with an emphasis on sharing experiences to generate value chain influence.

Green 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 office environments and green transportation. In both production and daily life, ECOVE aims to achieve energy efficiency, carbon reduction, and a love for the Earth as sustainable development goals.

Local Procurement

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 affecting 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.

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 a favorable working environment, high-quality products, and timely delivery, we actively encourage suppliers to address carbon reduction and sustainable development. With this in mind, we have set the following targets: By 2027, all major pharmaceutical manufacturers will complete their carbon inventory and at least 71% of them will achieve ISO 14064 certification. In the long term, our goal is for all major pharmaceutical manufacturers to achieve carbon inventory, ISO 14064 and ISO 14067 certification.
In order to assess the current status of sustainable operations and net zero emissions among our Company's key supply chain partners, we conducted a survey in line with the Group's efforts. The purpose of this survey is to assess the potential for future collaboration and to foster growth among our partners alongside ECOVE. To gauge the willingness of vendors, we distributed a total of 64 questionnaires to vendors who had transactions of NT$10 million ormore in 2023. The deadline for responses was November 15, 2023, and we received a total of 43 responses. 81% of them are willing to set reduction targets with ECOVE and gradually decrease greenhouse gas emissions year by year.
The pursuit of net-zero emissions is a long journey, and ECOVE will continue to develop its core businesses, such as renewable energy and waste recycling, to foster a mutually beneficial opportunity for sustainable energy and the establishment of a green new economy.