Operators promise "energy saving, emission reduction, intelligent, automatic"

Environmental Actions

Motor Carbon Foodprint

Motors are one of the most important source of power. According to statistics, 46.2% of energy is consumped by motors worldwide. From household appliances to industrial machinary, motors powers every equipment. What kind of material forms a motor? More than 90% is metal. Here shows TECO high efficiency (IE3) 150 hp motor data:

Steel: 54 %
Iron: 32 %
Copper: 6 %
Aluminum: 2 %

TECO has conducted a carbon footprint analysis of three high-efficiency motor models by "from cradle to gate" approach. Which calulated carbon emissions including raw material, manufacture process, direct manpower and waste generated. We found that 90% of carbon emissions come from the production of raw materials, and only 10% is from motor manufacture stage. This shows that the recycling of raw materials (metal parts) is important to reduce emission.

Model	Emission from Raw Material kgCO2e	Emission from Manufacture kgCO2e	Total Emission kgCO2e
AEHF 2HP	152 (92.5%)	12 (7.5%)	164
AEHF 20HP	625 (89.9%)	70 (10.1%)	695
AEHF 150HP	3770 (90.9%)	375 (9.1%)	4145

The total sales of TECO’s motor series of products qualifying the carbon footprint analysis accounted for 32.4% of the overall volume.

TECO conducted a carbon footprint assessment of the AEHF, AEHH, and AFHH three-model series motors. The calculation method is the proportion of the total sales volume of the model in 2023 to the total motor sales volume.

Product Stewardship

Design Stage	Motor lightweight: The T-HiPro+ series motor is developed in 2023. The optimized design of the lightweight motor is about 25% lighter than the original product. On average, each motor can reduce weight by 3,890 kilograms and reduce carbon emissions by 9,485 kilograms. The T-HiPro+ accounts 5.7% revenue among it’s product class.
	The motor uses recycled materials: the motor casing is cast from silicon steel scraps, ferromanganese, clay, scrap steel plates and other raw materials. The 2023 cast iron casing contains 88% recycled materials.
	Water-based paint introduction: The motor water-based paint introduction plan was launched in 2016: By the end of 2023, the water-based paint introduction proportion has reached 81.1% of the total production, and the total emission of volatile organic compounds (VOC) has been reduced by 585,777kg, and the emission reduction has reached 72.4%. .
	Environmentally friendly refrigerant substitution: Home air conditioners promote R32 environmentally friendly refrigerant and process refrigerant recycling, accounting for 89% of the number of units produced in 2023.
Manufacturing Stage	Through process and equipment optimization, the overall energy saving of the Taiwan factory in 2023 will reach 1,231 kilowatt-hours. Related actions include promoting smart automated production and equipment energy-saving solutions.
	Waste resources are used to melt and reuse silicon steel scraps as motor casings. In 2023, a total of 3,419 kilograms of residual materials was recycled, with a scrap recycling ratio of 96.5%. The casting output is 3,898 kilograms. The cast iron casing contains 88% recycled materials.
	Controlling SF6 emissions: Overhead line switch products (POLE SW) improve measurement and filling equipment to reduce emissions, with the emissions rate reaching 1.48% in 2023 (a 47% reduction compared to 2020 emissions)
Transportation Stage	Direct logistics users shorten the delivery process and increase home delivery revenue by 637,000 in 2023.
Use and Repair Stage	Committed to deliver high efficiency motors. In 2023, IE3 and IE4 motors will account for 74.7% of all motor product revenue.
	Committed to the research and development of energy-saving and water-saving home appliances, green home appliances will account for 60% of revenue in 2023, with a cumulative emission reduction of 91,743 tons in three years.
	The development of the T-Power+ (bus) electric vehicle power system to reduce the environmental harm of fuel vehicles is a priority for the power system to obtain the DMIT (Design and Manufacture in Taiwan) Industrial Innovation Program, with a market share of 85% in Taiwan in 2023.
End-of-Life Stage	Most motor products are made of recyclable metal materials. Taking the AEHF series of motor products as an example, 88% of the materials can be recycled after the product is discarded.
	Home appliance products participate in the Taiwan Environmental Protection Agency's waste recycling policy (television sets, washing machines, refrigerators, air conditioners/heaters), providing consumers with a free service of transporting waste equipment to qualified treatment plants. Those that comply with the waste recycling policy in 2023 Home appliances accounted for 54.4% of annual sales
	TECO Electric and other home appliance manufacturers jointly established E&E Recycle Company in Taiwan and assigned directors to provide recycling and processing services for waste electronic and electrical items. Income from recycling in 2023 is NTD 121,648k
	Overall production proportion of recyclable products in 2023: 74.04%, estimated proportion of actual recycled products: 63.95%

Hazardous Substance Policy and Material Management

Implement the management of the prohibition of environmentally harmful substances. In addition to choosing conflict-free metals as raw materials for each product design stage, a hazardous substance management mechanism is also established to clearly declare that the company, suppliers, contractors, and partners shall follow. TECO promises that by 2023, 100% of motors and home appliances and their raw materials comply with international mandatory regulations and management.

Regulatory Trends	Restriction of Hazardous Substances in Electrical and Electronic Equipment Directive, (RoHS), Registration, Evaluation, Authorization and Restriction of Chemicals, (REACH) must be included in the management measures at least one year before implementation.
Management Mechanism	The production sites are all in compliance with the group's management measures for prohibiting/restricting the use of environmentally hazardous substances, and the subsidiaries and affiliated companies have consistent implementation standards as well. Raw materials, parts, processed products, and consumables must be followed. At present, 10 categories of prohibited/restricted hazardous substances are controlled, covering non-steel, steel, plastic packaging, paper packaging, wood packaging, foam packaging and process chemicals.
Renew and Implementation	When there is a major change in the external norms, it will be discussed across business departments and re-promulgated. The frequency is about once a year.
Disclosure	All business groups follow TECO policy, and fully control 10 categories of prohibited/restricted hazardous substances.

End of Life Cycle Responsibility

Consolidate recycle scenario from motor and home appliance products:

	2020	2021	2022	2023
Percentage of products sold last year that can be reused or recycled	75.81%	76.85%	79.62%	74.04%
Percentage of products and materials that were actually reused or recycled	68.20%	69.04%	73.71%	63.95%
Revenue from recycling (NTD k)	94,634	116,463	117,670	122,166

Calculation of recyclable ratios for sold products:

Estimated total weight of recyclable products (motors + household appliances) sold per year * recyclable material ratio of different product categories (motors 88%, household appliances 52.0%)/Estimated total weight of all products sold per year.
Calculation of estimated total weight of products sold: Due to the large number of sold motor and household product models it is very difficult to create individual weight statistics. Shipped quantity of different product quantities (number of items) *Weight of most frequently sold models is therefore used as the calculation formula for estimated total weight of products sold.

Calculation of actual recyclable ratios:

Denominator: Weight of products sold is substituted for weights in the production process which are impossible to trace due to the substantial number of products.
Numerator: Due to different product characteristics, it is difficult to perform actual statistical analysis of recycled quantities. Consequently, the actual recyclable ratio is estimated according to the following scenario, and it is assumed that the products purchased by customers in the respective year are replacements for existing products of the same brand. Assumed recyclable ratios are 100% and 50% for motors and household appliances, respectively.

TECO and other home appliance manufacturers have engaged in a joint venture to establish the E&E Recycling Company and assigned directors for the company to provide waste electrical and electronic equipment recycling and processing services. Calculation of benefits derived from recycling: Illustrated by TECO shareholding ratio (13.42%) in E&E Recycling company.
Motor product life cycles range from 10-15 years. Since motors are mainly made of metal, the recyclable metal material of one single motor can reach 88%. Consequently, scrapped products are disposed of by customers autonomously through the sale and purchase of valuable metals. TECO has not yet received requests for motor recycling service from customers.
Environmental Protection Administration in Taiwan has established the Waste Four Machine Recycle Policy (refrigerator, air conditioner/heater, washing machine, television), and the distribution units that consumers make their purchase from provide the transportation service to the qualified operator for processing; therefore, product manufacturers have a relatively greater difficulty in the actual statistics of the annual recycle amount.