TECO Included in the DJSI-Emerging Markets for 4th Year in a Row
TECO Electric & Machinery Co., Ltd. has been included in the DJSI (Dow Jones Sustainability Index)-Emerging Markets 2023, for the fourth straight year, noticeably ranking 1st place in ESG (environmental, social, governance) evaluation for the emerging-markets electromechanical industrial category and third place in the global electromechanical industrial category. The company wins high scores in all the items of the evaluation, including "emission management," "carbon abatement," "product energy efficiency," "open innovative management," "director independence," and "talent development."
Sophia Chiu, TECO chairman, points out that in the high competition in DJSI evaluation among excellent enterprises worldwide, TECO has managed to improve its performance every year, thanks to the company's input and effort for sustainable development. In fact, under a 10-year plan, the company has aimed to halve its emission by 2030. The company has embarked on the setup of sustainable supply chain and a sustainable working environment, in order to create sustainable value for shareholders.
In this year's evaluation, TECO, in line with the requirement of transparency, has categorized its revenues, according to EU Taxonomy directive, with the results showing that revenue of the sustainability category accounting for 49.8% of TECO Group's consolidated revenue in 2022. Among the company's three major business groups, revenue from IE3 and higher-graded high-efficiency motors boasted 74.9% share in the revenue of the electromechanical system and automation group, a major factor for the company's remarkable performance in the energy-efficiency item of the evaluation, while green home appliances contributed to 64.6% of the revenue of the air-conditioning, and smart life business group and revenue from such engineering works as offshore wind power, grid resilience, and green building had 23.3% share in the revenue of the smart energy business group.
As for climate governance, TECO has initiated an internal carbon-pricing system, at NT$1,600 per ton, incorporating emission cost into various business groups' annual budgets and thereby galvanizing employees to cut emission. The company has also required its 13 production bases in Taiwan, China, the U.S., Italy, and Vietnam to implement emission reduction projects comprehensively and subject their performances to third-party verification. Moreover, the company has demanded its top-50% supplies, in terms of procurement values, to conduct greenhouse-gas inventory. In addition, it has assisted 10-plus small and medium enterprises carrying out greenhouse-gas inventory for the first time this year, gradually attaining emission-data transparency for Taiwanese supply chain. TECO notes that given the emerging importance of the ESG issue, TECO Group intends to become a mover for industrial carbon abatement and power saving, striding towards the vision of net zero-emission.
In line with its high regard for the interests of stakeholders, especially its employees,
TECO has launched the DEI (diversity, equity, inclusion) plan this year, instilling the concept among employees via education and training, including its e-learning platform. The campaign will spread to its foreign staff next year, in order to promote diversified values.