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Environmental Actions

TECO is committed to the compliance of biodiversity. The impact of the local ecological environment has been considered in the initial stage of the group's operation and production area; in order to minimize the impact on the ecological environment; and to ensure that there is no significant negative impact and impact on biodiversity. TECO uses the Integrated Biodiversity Assessment Tool (IBAT) to conduct a discussion on the ecological diversity impact layer of existing operating production areas. The scope covers factories in Taiwan, the United States, China, Vietnam, Italy, India (under construction), and Mexico (under construction). The production bases selected by TECO are all located in industrial areas approved by the governments of various countries, and the harm to biodiversity is limited.

 

More than 50% of the materials used in motors are steel, including silicon steel sheets, steel plates, bar steel, etc. The scraps of steel can be re-dissolved and cast into motor casings, which are the most critical raw materials in motor manufacturing. TECO purchases more than 35,000 metric tons of steel in mainland China every year from five steelmaking plants including Baosteel, Taiyuan Iron and Steel, Shougang, Huaigang and New Steel. We also used IBAT to explore the impact layer of the operating production area on ecological diversity. We found that except for the forest park and bird conservation area near the "Tianlongshan Grottoes" on the outskirts of Taiyuan, Shanxi Province, the operations of other steel plants have no impact on the surrounding ecology. Significant impact.

 

 

 

Biodiversity management framework and indicators

 

Guiding Principles

Corresponding Practices

Top management oversight of nature-related risks and opportunities
  • The highest supervision is the "Corporate Governance and Sustainability Committee". The chairman serves as the top management, and the members of the committee include several members of the board of directors; the ESG office is the executive level unit. Biodiversity promotion plans must be reported to the board of directors (the biodiversity policy is expected to be approved in 2023).
  • Process to identify natural risk:
  1. Spatial Distribution Maps - Preliminary use of land use map data to perform site analysis.
  2. Introduce an assessment process to identify overall nature-related risks and opportunities from 2023.

Impact on business strategic and financial planning
  • Short term risk：Air pollution caused by production process.
  • Short term opportunity：Water-based paint reduces VOCs emissions and air pollution.
  • Mid term risk：Water pollution affects environmental ecosystem.
  • Mid term opportunity：Water-saving measures and comprehensive assessment of energy, greenhouse gas, water resources and biodiversity.
  • Long term risk：Biodiversity disruption due to raw material supply and impact on stakeholders.
  • Long term opportunity：Conservation programs for biodiversity conservation. Improve marine and terrestrial biodiversity.

Assessment Results

The current operating sites are not located in or adjacent to a country or a nationally designated important biodiversity area.

Management metrics
  • Comply with regulatory standards and increase the proportion of water-based paint.
  • Set water reduction goals; increase recycled water utilization.
  • Proportion of usage of wood products and paper with non-deforestation certification.

Commitment and targets
  • Increase the proportion of water-based paint to more than 90% by 2025.
  • Before 2025, the goal is to reduce the water consumption by 2% per year, which will eventually be equal to the water consumption quantity.
  • HQ office implements FSC certification in 2025.

*Referring to the risk management structure and definition, TECO defines short-term (three years), medium-term (three to five years), and long-term (more than five years).