Energy Conservation, Emissions Reduction ,Smart Application ,and Automation
TECO relies on its core motor technologies and R&D philosophy which is centered around the four principles of Energy Conservation, Emission Reduction, Intelligence, and Automation in its efforts to realize digital transformation, lean sales and marketing, and production automation. The Company is actively committed to perfecting its Business Intelligence Management System and utilizes a digitized platform to maintain a firm grasp of the status of operations in regional offices and branches all over the world. As a result, non-consolidated revenue and profit for the year increased by 5% and 9%, respectively. Consolidated profit grew by 8% due to effective cost and expense control and decreased taxes and dues. In addition, three major production centers were completed in Taiwan, China, and Vietnam, respectively, in 2020. The Taiwan plant(s) feature a power consumption and pollution control system. The Company also persists in its efforts to implement automation through deployment and installation of AI health diagnosis and preventive maintenance systems for production equipment in its manufacturing centers.
Against the backdrop of the dual impact of the COVID-19 pandemic and declining consolidated revenues on deliveries, the sales volume of electrification products dropped in the North American, European, and Southeast Asian markets and demand for machine tools and other machinery was sluggish due to the impact of the Sino-American Trade War. However, domestic demand for energy-related electromechanical engineering increased significantly and household appliances saw brisk domestic sales mainly due to the stimulus of energy conservation subsidies. The air conditioning industry also benefited from this measure and therefore exhibited considerable growth.
Looking ahead to 2021, major forecasting institutes predict substantial growth of the global economy as vaccination drives begin and national economies are gradually recovering. The Directorate-General of Budget, Accounting, and Statistics projects a national economic growth rate of 3.83%. Several institutes expect a growth rate of 4% or higher. The growth momentum is projected to be superior to that of most economies worldwide.
Key operation strategies and growth plans for 2021 include (1) growth plans for existing business areas: Full utilization of the existing globalized production and marketing network and stepped-up development of high-performance permanent-magnet motors, synchronous reluctance motors, and medium-to high-voltage inverters. (2) Strategic development plan: Deployment of electric vehicle powertrain systems, solar power stations, onshore substations for offshore wind power, energy storage systems, and digitized & intelligent automated systems.
Implementation of Corporate Governance-Realization of Sustainable Operations
TECO has officially declared its commitment to a 10-year goal of energy conservation and emission reductions by 20% with 2015 as the base year. The goal is to decrease carbon emissions by 20% in 2025. Due to the joint efforts of all staff members, TECO achieved its emission reduction goal five years earlier than expected in 2020. Relevant measures include replacement of existing with energy-saving equipment, more efficient production scheduling, development of smart, automated production technologies, and prevention of GHG and refrigerant escape. Upon completion of the first stage, TECO will fully implement its Sustainability KPI, which encompass indicators in the three dimensions of internal carbon pricing (ICP), ratio of recycled materials and waste recycling, and climate impact management, starting this year.
The goal is to inculcate sustainability concepts in the daily operations of each department and employee. These KPI are tracked and evaluated every quarter and are linked to salaries and incentives. This management method enables the Company to further assess its achievements in the field of emission reduction in a scientific manner. This method is paired with supplementary measures for carbon removal to achieve the ultimate goal of carbon neutrality within the shortest time possible.
In view of the severe impact of global environmental changes on humanity, TECO is firmly dedicated to promoting industry and technology advances in Taiwan, while persisting in its efforts to expand its global layout. The Company also maintains its commitment to implementing its sustainability plan which involves electric vehicle powertrain systems, active participation in the development of renewable and green energy technology, and expansion of digitized & intelligent automated systems in sync with global industry trends. In 2020, performance in the field of corporate governance was also outstanding. Relevant achievements include the first-ever listing on the Dow Jones Sustainability Index (DJSI), inclusion in the Sustainability Yearbook of S&P Global, an international sustainability rating provider, receipt of the Taiwan Top 50 Corporate Sustainability Gold Award for seven consecutive years, and ranking among the Top 5% in the corporate governance evaluations for six years in a row. With regard to its management methods and goals, TECO has already achieved its 10-year goal of a 20% emission reduction. This decrease exceeds the national target by 100%. The goal is to maintain international competitiveness through direct pursuit of the EU target of net-zero emissions by 2050. The Company plans to expand implementation of this goal to its overseas plants in 2021 and thereby firmly implant sustainability concepts in the corporate culture of the Company.
In addition to pursuing revenues and profits, the Company also strives to realize its management philosophy of "Ethical Corporate Management, Implementation of Corporate Governance, Fulfillment of Social Responsibility and Pursuit of Sustainability." TECO aims to achieve its goal of sustainable corporate development through fulfillment of its role as a corporate citizen. The “Corporate Governance and Sustainability Committee” was established to oversee implementation results in the field of sustainability issues to facilitate the integration of the ESG (Environment, Society and Governance) indicators into the Company’s management and decision-making process, fulfill its corporate social responsibility in the areas of social inclusion and green economy, and thereby reinforce CSR and sustainability concepts.
Chairman of TECO
Contact window: CSR Task Force/Jay LC Huang, Special Assistant, email@example.com