Following the Materiality analysis results, TECO sets risk mitigation measures, relevant education and training, and formulates KPI goals. KPIs are assessed on a quarterly basis, and the results are directly linked to the salary system to ensure the effectiveness of the management policy.
Sustainable Existence
Material Topics |
Extreme weather events have led to more and more frequent interruptions of business operations. The Taiwan government has enacted phased controls, the capital market has established responsible investment guidelines, export countries make national low-carbon product laws and carbon border taxes and other issues. Power shortage is a common problem in many countries, and TECO Group, as a multinational enterprise, has several global production sites, which greatly increases the degree of impact. Since the Ukrainian-Russian war, electricity prices in Italy have risen fourfold. China’s required factories to shut down during the daytime. Natural disasters in Texas have caused large-scale power outages. Taiwan’s electricity prices have risen by 11%. TECO must have the ability to create and store electricity to respond to external changes in a timely manner. |
Sustainability Goal |
Mid term: 2025 to reduce 34%, Long term: 2030 to reduce 50%
Mid term: to install 15% of power generation capability. Long term: to keep 15% after new supply chain built in India and America.
Mid term: to complete all manufacture sites and listed subsidiaries. Long term: to complete 100% companies in TECO Group. |
Potential Risk |
Fail to follow emission reduction pathway. |
Mitigation Strategy |
ESG office has full responsibility to oversee emission reduction status from all business groups. Implement digital system to shorten the control cycle from yearly to monthly. |
2022 Performance |
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2022 Education and KPIs |
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2023 Communication Points |
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Sustainable Operations
Material Topics |
As a Taiwanese and multinational company, TECO Group has multiple global production bases, which greatly increases the degree of impact. Besides, the frisk of products failed to meet carbon reduction needs or the risk of losing market access will both generate impacts on TECO's climate governance and net-zero scheduling. Besides, the laws and regulations of various countries require scientific implementation of the country's overall carbon reduction actions, so TECO has deployed and achieved the legal requirements for GHG inventory verification in advance. |
Sustainability Goal |
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Potential Risk |
The pace of transformation is not as expected, and the additional absolute emissions due to business expansion is out of control. |
Mitigation Strategy |
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2022 Performance |
In response to changes in the supply chain and physical natural disaster risks, TECO has invested in new factories in different regions, invested more than NTD 800 million in production bases and cultivated supply chains in Vietnam, India, Mexico and other emerging regions, so as to disperse the impact of natural disasters in the future. |
2022 Education and KPIs |
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2023 Communication Points |
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Sustainable Profits
Material Topics |
TECO has shifted from motor sales to energy transformation services, striving for energy transformation to fulfill clients’ needs for energy conservation and carbon reduction policies. Such as, the United States has restarted subsidies for green electricity, solar energy and hydrogen energy projects. In addition to playing an important role in data center engineering, construction for the offshore wind power substations, and energy storage has recently seen strong growth as well. This year, the establish of “energy generation and storage business department” will integrate resources and strive for the privatization of virtual power plant operation. |
Sustainability Goal |
50% EPS growth in 2025 Mid term: clean tech engineering to growth by 9% in revenue. Long term: to growth 34% in 2025 |
Potential Risk |
Fail to win new market share |
Mitigation Strategy |
Set a three-year growth plan, and report to the board of directors by CEO |
2022 Performance |
Develop low-carbon new products, build renewable energy projects, construct offshore wind power onshore substations, and develop private energy storage projects. Provide low-carbon plant solutions for existing customers, such as the introduction of Petrochemical's electrification solution. Established a new business unit to strive for business opportunities in virtual power plants and micro-grids. Business target achieved 194% of its original setting in 2022. |
2022 Education and KPIs |
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2023 Communication Points |
Establish market share of new business opportunities, build virtual power plants and micro-grid operating capabilities, provide customers with electrification solutions, and transform from a product sales manufacturer to an energy management service company as a whole. |
Contact window: ESG Office/ Jay LC Huang, csr@teco.com.tw