Energy Conservation 節能, Emissions Reduction 減排, Smart Application 智能, and Automation 自動
TECO declares “Emission reduction by 20% in one decade” and has demonstrated outstanding performance in terms of the customer, production site, supply chain, and social aspects. The four main production centers actively engage in the planning, and high efficiency motors and green home appliances have saved a total power consumption of 520 million kWh for customers, reduction of 320 thousand tons in emissions, renewable energy power generation of 2.61 million kWh, and the annual emissions reduction of production sites in 2019 significantly surpassed the goal to reach 14.5%. Water-based paint introduction ratio is 66.2%. TECO and other domestic home appliance manufacturers have established the E&E Recycling company and assigned directors for The Company in order to disassemble recycled old home appliance products. In 2019, the income generated from the recycling of old home appliance products was NTD 94.08 million.
Let the World See Taiwan
TECO was nominated as “FTSE4Good TIP Taiwan ESG Index” this year. Therefore, it catches the global sustainable investment train formally. As the largest industrial motor producer in Taiwan, TECO is leading its suppliers in the supply chain to promote Taiwan’s industrial intelligence to the world. Last year, we helped our customers save the electricity by about 520 million kWh throughout the world. Each kWh of the electricity saved with our help should be identified as the contribution made by Taiwan’s industry to the world.
The 2019 TECO CSR Report is the 10th issue published by TECO since 2010 and the 8th issue verified by an external third-party organization. This year’s report analyzes and identifies material issues and secondary issues based on GRI Standards. These serve as important KPIs for related departments to facilitate reading by stakeholders, as well as give them a clearer understanding of developments pertaining to each material issue. The goal is to improve communication with stakeholders regarding concepts and approaches of TECO in the dimensions of governance, economy, environment, and society.
Looking ahead at 2020, impacted by COVID-19 pandemic, major forecast bodies have predicted global economy will decline in the year. Taiwan's Cabinet-level Directorate General of Budget, Accounting, and Statistics (DGBAS) forecasts that Taiwan's economy will grow by 2.37% in 2020, compared with 2.4-2.7% growth rates predicted by other forecast bodies. In the face of the challenging environment, TECO, in addition to the development axis of "energy conservation, emission reduction, smart application, and automation," will implement digitalization, intensify marketing and production automation, thereby inducing growth with precision marketing. Moreover, while it builds secondary supply chain for parts of SmartAuto and electromechanical products, forming a remote backup mechanism to minimize the impact from external unfavorable factors to maintain steady growth and profitibilty.
TECO has been granted the honors of golden award for Taiwan Top50 corporate sustainability report for six years in a row and corporate citizen award by Commonwealth magazine for eight years running. Adhering to the concept of sustainable development, TECO has pledged to "20% emission reduction in 10 years" and rolled out "employee public-service account" this year, materializing the group's vision of "energy conservation, emission reduction, smart application, and automation" according to the strictest criteria, thereby leading employees to contribute to a sustainable society, as well as forging an working environment with long-term development potential for employees, providing customers services with competitive value, and creating optimal investment returns for shareholders
TECO Selected as Member of DJSI Emerging Markets
TECO Electric & Machinery has been incorporated, as the only Taiwanese firm in the category of ELQ Electrical Components & Equipment, into 2020 Dow Jones Sustainability Index (DJSI). This is the first time for the inclusion of the company in the index, thanks to its extraordinary performance in the two items of "innovation management" and "environmental policy and management system," for both of which it was granted full marks. Sophia Chiu, TECO chairman, points out that the company has been striving to enhance its sustainability competitiveness, via efforts in the aspects of corporate governance, environmental sustainability, employee care, and social participation, plus compliance with the global trend in corporate social responsibility, major reasons for its inclusion in the emerging market index of DJSI.
TECO Included in S&P Global Sustainability Yearbook
TECO Electric & Machinery has been granted "Industry Mover" status in S&P Global 2021 Sustainability Yearbook, in acknowledgement of its remarkable performance in sustainability, especially in the fields of innovation management, human capital development, and occupational health and safety. The inclusion of TECO in the yearbook represents that the company ranks among top 15% in its industrial sector worldwide in the evaluation of the yearbook, which covers more than 7,000 enterprises worldwide.
Constituent Stock of F4G TIP TW ESG Index FTSE4Good link | Taiwan Index link
In recognition of its contribution to sustainable development, TECO Electric & Machinery has been selected as a constituent stock of FTSE4Good TIP Taiwan ESG Index (F4G TIP TW ESG Index, in short), for which it was granted a certificate for proprietary corporate mark on April 16. Sophia Chiu, TECO chairperson, pointed out that for years, TECO has been actively fulfilling corporate social responsibilities and seeking sustainable development, conforming to an all-round development which addresses environment, society, and corporate governance (ESG), so as to lead suppliers in forging a green supply chain. The index is compiled by Taiwan Index Plus Corp. and FTSE International Limited jointly, with constituent stocks being selected from constituent Taiwanese stocks of FTSE4Good Emerging Index with good financial standing.
Top 5% performance for corporate governance
TECO Electric & Machinery (1504) hits the top 5% list for corporate governance among all the companies listed on the Taiwan Stock Exchange for the sixth year in a row, a record shared by only 11 other listed companies.
The Taiwan Stock Exchange points out that the new edition of corporate governance blueprint prioritizes strengthening of the validity of corporate-governance evaluation, in order to continue pushing sound corporate governance among companies listed on the centralized market and over-the-counter market. In addition, its evaluation indicators fall mainly in the four categories of "upholding of shareholders' equity and fair treatment of shareholders," "strengthening of the structure and operation of the board of directors," "enhancement of information transparency," and "materialization of corporate social responsibility." Thanks to its high regard for corporate governance, TECO has performed excellently in various evaluations. In addition, it instituted a corporate-governance chief last year, whose scope of authority, as well as major business plan, has been disclosed on corporate website and in annual report, a practice which can serve as a model for listed companies.
It stresses that the company will uphold shareholders' equity as its primary goal and stick to the concept of "integrity-oriented management, materialization of corporate governance, fulfillment of social responsibility, and quest for sustainable development”. The honor accorded by the regulator underscores the company's performance in corporate governance and its trustworthiness for shareholders, who can rest assured supporting the company's stance and propositions, in order to maximize their interests.
TECO Honored With Four Sustainability Awards
TECO Electric & Machinery Co., Ltd. has won the honor of Taiwan Corporate Sustainability Awards 2018, in acknowledgement of its long-term dedication to the fulfillment of corporate social responsibilities and quest for materializing the concept of sustainable development. TECO was granted the awards in four categories, including platinum award for Top 50 reports in the corporate sustainability category, Top 50 corporate sustainability award in the general performance category, social harmony award, and transparency and integrity award, both in the single-item performance category. Throughout product life, from development, production, to waste disposal, TECO has taken into account energy conservation, emission reduction, and cut on waste in energy and resources, listing environmental sustainability as the foremost objective. TECO, for instance, started to sell high-efficiency, energy-conserving motors in 2017, having helped customers cut power consumption by 606 million kilowatts/hour annually and reduce 335,800 metric tons in emission, in addition to achieving, in conjunction with the use of inverters, over 35% saving in power consumption for industrial motors. In process, TECO has installed energy management system in production lines at factories and rooftop PV power system at its Guanyin factory in Taoyuan City, via its own PV power technological team, paving the way for the development green energy business.
Contact window: CSR Task Force/Jay LC Huang, Special Assistant, csr@teco.com.tw