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Environmental Actions

Water Management Plans

Water Management Plans	2023 Actions
Water use assessment to identify opportunities for water efficiency improvements	TECO conducts water resource use assessments every year in accordance with the ISO 14001 environmental management system and internal management procedures. An analysis of the water dependence of the process in 2023 showed that TECO’s main business is motor production. In addition to the production of casting sand molds, water is consumed in the process. The remaining operations are mostly circulating water used for equipment cooling or environmental protection purposes, the circulating water used in the scrubber during the air discharge process, and domestic water used by employees.
Actions to reduce water consumption	TECO continues to implement various water-saving measures, with an annual reduction of 5% as the management goal, including leak detection to improve pipeline leakage losses, reuse of recycled water, and changing the painting process from wet to dry style.
Actions to improve wastewater quality	The waste sewage from the main production factories is collected by underground pipes and discharged to sewage pipes or sewers. It then flows into the Industrial Zone Management Bureau or the municipal sewage plant for unified treatment. The wastewater treatment process complies with the local industrial zone sewage plant entry standards (no violations occurred in 2023). There are interception facilities in the factory to deal with emergency situations; there is no significant impact on the relevant production areas and the surrounding environment.
Establishment of targets to reduce water use	TECO continues to implement water-saving measures and aims to reduce water consumption by 5% annually, including conducting leak detection to improve pipeline leakage losses. TECO's wastewater discharge is estimated based on 80% of water consumption or calculated based on the amount of process wastewater. The wastewater in each factory area has been tested by qualified 3rd party, and the discharged water quality complies with legal regulations.
Application of water recycling	TECO's recycled water usage accounts for 21% of the total water intake; in 2023, Taiwan's Zhongli Plant's water intake is 88,857 tons/year, and the cooling water tower recycled water consumption is 76 tons/day, calculated based on 250 days of use per year.
Awareness training provided to employees on water efficiency management programs	Conduct training for water-saving management personnel to improve water-saving awareness (such as courses on the application of waste reduction and water-saving results); 2,005 people were trained, totaling 3,466.35 hours.

Manufacture water dependence analysis

TECO's main business is motor production. In addition to water consumption during the production of casting sand molds, the rest of the operations are mostly circulating water used for equipment cooling or environmental protection purposes, circulating water used by scrubbers in the air discharge process, and people's livelihood usage for employees.

Process	Water Usage	Recycle Status
Casting	Cooling water used in dissolving furnace	Recycle
	Water mixed with sand when making sand molds	Discharge
	The spray painting process requires water for environmental protection	Recycle
Stamping / Stacking	Cooling water for cast aluminum/brazing	Recycle
Electrical Winding	Cooling water for vacuum pressure impregnation system (VPI) process	Recycle
Testing	Water-cooled model testing	Recycle

Water Sensitivity Analysis

TECO uses the World Resources Institute (WRI) Aqueduct Water Risk Atlas to analyze water resource risk levels based on global river basin and basin information to identify the water risk indicator level of the global supply chain (1 is the lowest; 5 is the highest).

The analysis shows that India (Bangalore) is the region with the highest risk and is also the latest production base to be established under international geopolitical considerations. The establishment of new factories must pay more attention to the protection and recycling of water resources. The mainland (Jiangxi and Jiangsu) is a secondary risk area. However, the mainland production base is mainly based on stamping and mechanical processing and is not highly dependent on water sources. The main risk comes from the metal smelting supply chain. TECO purchases more than 35,000 metric tons of steel come from five steelmaking plants including Baosteel, Taigang, Shougang, Huaigang and Xinang Steel, which are the main sources of steel. Vietnam (Binh Duong) is also a secondary risk area, but the Vietnam factory mainly performs motor post-processing, machining, installation, testing, etc., and is not highly dependent on water sources. TECO Motor's flagship Chungli factory is in Taoyuan. Although it is assessed as low risk by the Aqueduct Water Risk Atlas, water shortages have often occurred over the years. Taoyuan is a drought-prone area based on the hydrological annual report statistics published by Taiwan. The analysis of weather phenomena and corresponding measures under RCP2.6 and 6.0 scenarios are as follows:

Scenario	Corresponding actions
RCP 2.6 CO2 level 421 ppm Rainfall increases 73%. What If it floods for more than 10 cm high in factory?	Prior protection: None of the production equipment and materials of Chungli Factory will be destroyed if flooded. If it is predicted in advance that there will be heavy rain, the factory may plan the surrounding sandbags in advance to prevent water from flooding into the factory building, and the construction cost of sandbag stacking is estimated at NT$4 million. Flooded: If there is a sudden heavy rain, the water will flood into the factory on the day of the torrential rain; sandbags cannot be stacked in the factory in advance for waterproofing, and it is necessary to urgently mobilize 30 water pumps to drain the flooded area quickly. The investment amount of 30 water pumps is estimated at NT$500,000.
RCP 6.0 CO2 level 670 ppm Rainfall decreases 42%. What If water supply stops for 1 week?	The water used in Chungli Plant is mainly used for casting, dissolving, sand treatment and dip painting (80 tons/day of shared water), and for the circulating water (10 tons/day of shared water) for air conditioning cooling by the integrated factory’s electricians and cutting by the mechanics. Water interruption within 4 days: The water storage of the foundry factory (315 tons of capacity) and the water storage of the integrated factory (55 tons of capacity) can be used for support. Water interruption for over 4 days: A 25-ton waterwheel (4 trips/day) can be employed, and the cost is NT$80,000 for water replenishment each time.

Scenario

Corresponding actions

RCP 2.6

CO2 level 421 ppm

Rainfall increases 73%. What If it floods for more than 10 cm high in factory?

Prior protection: None of the production equipment and materials of Chungli Factory will be destroyed if flooded. If it is predicted in advance that there will be heavy rain, the factory may plan the surrounding sandbags in advance to prevent water from flooding into the factory building, and the construction cost of sandbag stacking is estimated at NT$4 million.
Flooded: If there is a sudden heavy rain, the water will flood into the factory on the day of the torrential rain; sandbags cannot be stacked in the factory in advance for waterproofing, and it is necessary to urgently mobilize 30 water pumps to drain the flooded area quickly. The investment amount of 30 water pumps is estimated at NT$500,000.

RCP 6.0

CO2 level 670 ppm

Rainfall decreases 42%. What If water supply stops for 1 week?

The water used in Chungli Plant is mainly used for casting, dissolving, sand treatment and dip painting (80 tons/day of shared water), and for the circulating water (10 tons/day of shared water) for air conditioning cooling by the integrated factory’s electricians and cutting by the mechanics.
- Water interruption within 4 days: The water storage of the foundry factory (315 tons of capacity) and the water storage of the integrated factory (55 tons of capacity) can be used for support.
- Water interruption for over 4 days: A 25-ton waterwheel (4 trips/day) can be employed, and the cost is NT$80,000 for water replenishment each time.

Data source for Taiwan is from Taiwan Climate Change Projection Information and Adaptation Knowledge Platform (TCCIP) and is compared to current weather data.

Water Usage Performance

Water withdrawal	417.81	400.55	366.65	402.96
Water discharge	303.23	293.55	266.13	316.02
Total consumption	114.58	107	100.52	86.94
Intensity	0.0025	0.0020	0.0017	0.0015

in: k Ton 2023 Target: 96 kton(million m³)

Data coverage: 84.6%

Discharge Water Management

The water used by TECO is process cooling water and domestic sewage, and most of the wastewater sources are general wastewater. Factory wastewater is collected by underground pipes and then flows into the Industrial Zone Administration Bureau or municipal sewage treatment plant for unified treatment. The wastewater treatment process complies with the local industrial zone sewage treatment plant entry standards (no cases of exceeding the standards occurred in 2023), and interception facilities are installed in the plant to respond to emergencies. The management scope covers Taiwan, Mainland China, Europe and the Americas, with a coverage rate of 84.6%. The implementation of water resources management relies on the practices of each public institution. Regular monitoring of water quality discharges and regular inspections of wastewater volume are carried out. Water resource risk identification and opportunity assessment are carried out in different regions according to their process characteristics and standard procedures. Production bases conduct water resource training to improve water conservation. Awareness (such as: courses on application of waste reduction and water saving achievements); training for 2,005 people, totaling 3,466.35 hours.

Water Use Efficiency

The water source for TECO's factories and sales offices is municipal potable water, and water use, and drainage comply with local government laws and regulations; no water and wastewater violations occurred in 2023. Gradually carry out water-saving management based on water resource usage efficiency and reduce water intensity.

Water Statistics (M m³⁾

	Water withdrawal	Water discharge	Water consumption
Municipal potable Water	385.09	301.72	83.37
Underground Water	17.875	14.3	3.575

Data coverage: 84.6%