Environmental Sustainability

Practitioner of Resource Cycle and Environmental Sustainability

Under the goal of net zero emission by 2050, ECOVE has been committed to green investment and operation services in resource recycling and renewable energy. With a circular economy mindset and an environmentally friendly perspective, ECOVE has been actively cooperating with the government's policies on net zero carbon emission and the environment to provide low-pollution, low-emission, and high-energy-efficiency resource recycling and renewable energy, with a view to achieving a win-win situation for ECOVE, its partners, stakeholders, and the environment, and to do its utmost to safeguard the sustainability of the ecosystem and biodiversity.
Since 2017, ECOVE has taken the lead in adopting the BS 8001 Circular Economy Guidelines, which aims to enhance economic, environmental and social benefits through optimal resource management, and to improve the recycling rate and Resource Cycling EfficiencyTM of every resource, so as to achieve the implementation of and compliance with the principles and models of the circular economy in the whole business area. Since 2022, ECOVE has been conducting a comprehensive carbon inventory of its consolidated subsidiaries and obtaining external verification, as well as applying for carbon footprint certification for its waste incineration services, in order to provide lower carbon services. In 2023, it has already completed the external verification of the ISO 14067 carbon footprints of its Gangshan and Xizhou incineration plants, with the Xizhou incineration plant having the lowest carbon footprint in the nation. The Keelung plant, Miaoli plant, Xizhou plant and Gangshan plant have been certified for their carbon footprints.

Over the past three years, ECOVE has annually converted an average of 2.5 million tons of waste into energy (Energy from Waste, EfW), which is equivalent to replacing 540,000 tons of fossil fuels. Additionally, over 98% of the resulting bottom ash is sent for reuse. Advanced regeneration technologies are employed to annually recover and reuse approximately 15,000 tons of low-concentration waste byproduct, specifically known as isopropyl alcohol (IPA), generating over 4,000 metric tons of low-carbon recycled goods for the market. In 2023, the Company entered the high-tech recycled water market for the first time, with a production capacity of 13.7 million metric tons of recycled water and 26.65 million metric tons of wastewater treatment capacity in Taiwan. In terms of renewable energy, the annual carbon reduction benefit of power generation reaches 60,000 tons, and the number of kWh of electricity transferred to the service reaches 12.88 million kWh, assisting the industry to reduce carbon emissions by 10,000 tons.

2017 - Obtained the world's first "BS 8001 Circular Economy" certificate
Targeting "Energy from Waste (EfW) with Efficiency Enhancement," ECOVE obtained the world's first "BS 8001 Circular Economy" certificate. The Chairman, Jun Jer Liao (right) represented the Company in receiving the certificate from Mr. Pu Shu-Sheng, President of the British Standards Institution (BSI).

Climate Strategy and Management

To address the impacts of global climate change, ECOVE conducts climate risk and opportunity assessments in its four major business areas: waste removal, recycling, renewable energy, and electrical and mechanical maintenance and revamping. We regularly identify sources of risk and assess their potential impacts, establish relevant operational standards, and mitigate the operational impacts caused by these risks. Since 2020, we have introduced the TCFD (Task Force on Climate-related Financial Disclosures) management framework, which will continue to assess the climate change risks associated with our operations annually in light of the latest international conditions in order to enhance the organization's resilience in the face of climate change.

Climate Governance and High-Level Management

ECOVE focuses on the development of a circular economy and categorizes its subsidiary businesses into waste removal, recycling, renewable energy, and electrical and mechanical maintenance and  revamping, based on their attributes. Under the "Risk Management Guidelines," ECOVE has established a "Risk Management Implementation Committee" that reports relevant operational risks to the Board of Directors annually. The Company identifies and assesses physical risks such as high temperature, typhoons, thunderstorms, floods, droughts, as well as regulatory, market, and technological transformation risks that may arise from climate change and formulates corresponding response strategies.
At the end of each year, ECOVE reports to the Board of Directors on its "Report on Business Operations and Development" and provides a "Business Budget" for the following year, which is also submitted to the Board of Directors for consideration. Through explanations provided by the management team, the Board of Directors is fully informed about significant business plans and development strategies for the Company's future. After discussions, inquiries, and recommendations from the Board of Directors, a consensus is reached to finalize the financial planning for the next year.
The Sustainability Development Committee is chaired by the General Manager and comprises the Chairmen of the Boards of Directors, General Managers and Heads of Departments of each of the companies under its purview. Under the Committee, there are three major groups, namely, Social Engagement, Environmental Protection, and Corporate Governance, and each of these groups will set targets each year in order to fulfill their corporate responsibilities. At the end of each year, the "Sustainable Development Committee" reports to the Board of Directors on the "results of the current year's implementation and the next year's work plan" and revises the next year's plan based on the Board of Directors' recommendations, so that the Board of Directors is aware of the results of the Company's implementation of its corporate social responsibility, corporate governance, and goals and objectives related to climate change, and the Board of Directors is able to achieve the purpose of monitoring and supervision indirectly.

Risk Identification, Assessment, and Management Strategies

The highest committee responsible for climate risk control within ECOVE is the Risk Management Executive Committee, composed of the Board of Directors, Chairman, Audit Unit, General Manager, Executive Secretary, and department heads of subsidiary companies. The Risk Management Committee is convened on a quarterly basis to discuss and identify prioritized risk issues and propose control measures. The climate change risk management representative (a member of the Sustainable Development Committee), based on the results of ECOVE's identification of climate change risks, compiles and reports to the Risk Management Executive Committee on significant or immediate risk issues. The Risk Management Executive Committee shall compile the risk assessment results to be provided as a reference for the audit unit to draw up the annual audit plan. The audit office will report the audit results to the Board of Directors to facilitate the board's monitoring of climate-related issues.
In accordance with the "Risk Management Regulations", ECOVE systematically identifies climate risks that may be faced during operations. Climate risk consists of two major types, transformational and physical, which are further differentiated into regulations, technology, market, reputation, and immediate and long-term. Opportunities are divided into five categories namely, resource efficiency, energy sources, products and services, market, and resilience. The risk and opportunity matrices are evaluated and drawn based on the two consideration factors of incidence rate and impact. After discussion by the Risk Management Committee, the material risks and opportunities which ECOVE may face are determined, and effective actions are adopted to manage risks or harness the possible opportunities so as to strengthen the operational system and competitiveness of the Company and its subsidiaries. The short term is defined as within 1 year, the medium term as 2026, and the long term as 2030, with the value chain covering upstream, organization and downstream. Incidence rate is divided into seven levels, expressed as percentages. Impact is divided into five levels, and is divided into financial aspects, capacity or service locations, personnel injuries, regulations, consequences of reputation, etc. In pursuit of optimal efficiency, the Risk Management Committee convenes regularly on a quarterly basis to propose control measures, incorporating climate change issues. This is done to continually monitor and assess the effectiveness of the implemented control measures through audits, aiding the Board of Directors and managers in ensuring effective risk control.

Climate Risk Scenario Analysis

ECOVE's climate risks can be classified into two main categories: transition risks and physical risks, further divided into regulatory, technological, market, and reputational risks, as well as immediate and long-term risks. Opportunities are divided into five categories namely, resource efficiency, energy sources, products and services, market, and resilience. ECOVE conducts scenario analysis based on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). We refer to various sources of information such as the Taiwan Climate Change Projection Information and Adaptation Knowledge Platform (TCCIP), Representative Concentration Pathways (RCPs), Shared Socioeconomic Pathways (SSPs), International Renewable Energy Agency (IRENA), and National Science and Technology Center for Disaster Reduction (NCDR) to assess the financial impacts of risks and opportunities. The financial impacts are analyzed using scenarios provided by the IPCC AR6, including SSP1-1.9, SSP1-2.6, SSP2-4.5, SSP2-6.0, and SSP5-8.5.

Establishment of a Climate Performance Incentive System

ECOVE's industrial model is highly related to environmental sustainability, and the sustainability goals are linked to the KPI performance of all directors (including CEOs and other senior executives) and departments as one of the factors to be considered in the awarding of bonuses, which accounts for 25% of the total weighting of the goals. The sustainability goal includes the achievement rate of renewable energy power generation (climate opportunity), environmental protection achievement rate and green carbon reduction achievement rate (climate risk related). At the same time, through the communication between supervisors and colleagues, the above departmental KPI requirements are conveyed to colleagues for them to undertake and set their own KPI, so as to deepen the effectiveness of ESG promotion by colleagues.

Climate Indicators and Targets

In response to the climate issue, ECOVE has started to conduct a GHG inventory with 2022 as the base year, and completes the previous year's GHG inventory (including Scope 1, 2 and 3) every year with third-party external verification. GHG reduction targets and objectives follow the GHG reduction targets of our parent company, the CTCI Group, with 20% reduction in 2024, 40% reduction in 2026, and net zero in 2030 for Scope 1 and 2: ECOVE Headquarters Building. For subsidiaries in the areas of waste management, recycling and renewable energy, which are under long-term operational control, a 15% reduction is set for 2026 and net zero for 2050. The emission intensity targets for each area are described below:

Greenhouse gas reduction targets:

Greenhouse gas emission-related risks in each sector:

Participation in public infrastructure

In response to the government's twelve key strategies for the 2050 Net Zero Transformation, ECOVE has been actively involved in renewable energy and resource recycling for zero-waste public facilities, as well as participating in the electrical and mechanical maintenance and renovation of public facilities based on the concept of circular economy. The Chiayi City Green Energy Sustainable Recycling Center construction and operation transfer project adopts the zero-waste strategy of resource recycling, and is planned to be the first green building incineration plant in Taiwan, with a new-generation boiler design and an overall energy recovery efficiency of up to 27%, and the energy efficiency of the administrative building is designed to meet the standards of Grade 1+ building energy efficiency, and in the future, it will give priority to the use of electricity generated from solar power in the plant area, with the goal of a zero-carbon building.

Chiayi City Green Energy Sustainable Recycling Center schematic diagram

Greenhouse Gas Inventory

In response to the government's net-zero carbon policy, ECOVE is conducting comprehensive greenhouse gas emission inventories. Organizational-level greenhouse gas inventories are conducted for subsidiaries with operational control, and third-party certifications are obtained. In addition, self-assessments are carried out for other operated incineration plants. Using the year 2022 as the base year, ECOVE Headquarters has set reduction targets as follows: a 20% reduction by 2024, a 40% reduction by 2026, and achieving net-zero emissions by 2030. For subsidiaries in the areas of waste management, recycling and renewable energy, which are under long-term operational control, a 15% reduction is set for 2026 and net zero for 2050.

Scope 3 emissions

ECOVE Environment Service Corp. cooperated with the Group to conduct an organizational greenhouse gas inventory of waste incineration plants managed by the Group in 2022, to determine the emissions of each emission source, and then continue to improve energy conservation and energy efficiency, and set 2022 as the base year to control the intensity of emissions. Emission intensity in 2023 is 469.040 kgCO2/t, a decrease of 18% compared to 2014, and a slight increase of 2.8% compared to 2022, due to an increase in purchased power as a result of plant-wide shutdowns in line with the progress of each plant's efficiency improvement project.