Environmental Commitment

TECO Group Sustainability Policies and Commitments by Chairman TECO Sustainability Commitment by CEO

TECO Group Sustainability Policies and Commitments

TECO Group formulates “TECO Group Sustainability Policies and Commitments” to strive the practice of sustainable management by following “Sustainable Development Best Practice Principles”, “Ethical Corporate Management Best Practice Principles”, and “Corporate Governance Best Practice Principles” released from the board. To Ensure the implementation of the group's overall sustainability performance and to meet the requirements and expectations of stakeholders, this document is applied to all members within TECO Group including listed companies and manufacturing subsidiaries in the annual report consolidation.

Environmental Dimension

• Emission Reduction Commitment: Achieve 50% reduction in scope 1 and 2, and 25% reduction in scope 3 by 2030 within a decade. Lead subsidiaries to set environmental management goals, promote energy conservation to improve the energy efficiency of operating activities, and continuously improve energy performance to reduce emissions.
• Sustainable Raw Materials Commitment: Contribute our best effort to select low-carbon footprint, non-deforestation, non-harming biodiversity, and recycling materials in the product design and production stage. Reduce waste generation and prohibit using materials containing hazardous substances. Reduce the negative impact on the environment and human rights in the operational value chain and seek the best recycling model in the value chain, consistent with the principle of conflict-free minerals.
• Water Resource Commitment: Conduct water use assessment to identify opportunities for water efficiency improvements. Increase the proportion of recycling and formulate indicators to improve water efficiency.
• Biodiversity Commitment: Avoid operating activities in internationally or nationally important biodiversity areas, conduct risk assessments, and negotiate with stakeholders to mitigation measures to address biodiversity risks. If the business activity area has impacts on the environment and biology, compensation for restoration areas should be provided and restoration measures should be implemented to achieve the net positive benefit goal before 2050.

Social Dimension

• Elimination of Infringement and Remediation Commitment: Due diligence be conducted on key risks, including establishing a safe and healthy working environment, preventing human trafficking (modern slavery), prohibiting forced labor, eliminating child labor, eliminating discrimination, freedom of association, and the right to collective bargaining. Value chain members should be managed by signing “Human Rights and Environmental Sustainability Commitment”.
• Occupational Health & Safety Commitment: Comply with international standards and regulations related to occupational safety. Conduct hazard identification and risk assessment procedures and control measures for employees and contractors within operational activities. Prioritize the protection of human rights and continue to optimize the effectiveness of occupational safety management.

Governance Dimension

• Risk Elimination Commitment: Establish a risk governance function, conduct risk identification and mitigation activities. and auditing from the board level.
• M&A Due Diligence Commitments: Due diligence be conducted when conducting mergers and acquisitions to ensure that mergers and acquisitions will not have a significant negative impact on ESG.
• Value Chain Governance Commitment: Strengthen the communication of ESG risk awareness in the value chain, set assessment and vendor selection ESG criteria, and continue to promote the optimization of the logistics and distribution process, including choosing low-carbon transportation, reducing packaging material consumption and using recycled packaging materials, and selecting low-carbon energy .
• Law Compliance Commitment: Group internal management to follow “Corporate Governance Best Practice Principles”, value chain members to follow “Supply Chain Business Ethics “from TECO.

Approved by the Board of Directors in May 2024