Climate Change and Energy Saving

Introduction of TCFD Framework

In order to demonstrate that we are willing to take on the responsibility to jointly mitigate climate change with the world, we have put greenhouse gases and climate change on top of the agenda at the CSR Environmental Protection Team of the Board of Directors. The team is responsible for green engineering promotion, climate change risks and opportunities assessment, energy-saving and carbon reduction projects, as well as the development of other contingency strategies. The team holds regular meetings and reports directly to the President on the effectiveness of greenhouse gas management and the outcomes of our climate change responses measures.

Risk/Opportunity Identification and Financial Impact Analysis

CTCI has formulated the “Risk Management Guidelines on Climate Change” to establish a complete governance process by continuously identifying issues related to climate change, and examine the businesses that are most likely to be affected by climate change and the measures to manage and mitigate such risks, so that we become better at identifying and responding internally to various risks and opportunities, as well as carrying out external communication. In addition, thanks to the fact that circular economy and waste reuse concepts have been gradually adopted by the industry in recent years, the total power generation capacity of the waste incineration plants in Taiwan, operated by our subsidiary ECOVE, has reached approximately 1,361 GWh, or equivalent to a reduction of approximately 800,000 metric tons of CO2e in terms of electricity converted into carbon dioxide emissions reductions.
▼ CTCI Climate Risks and Opportunities Matrix

Main risks and opportunities of climate change Potential financial impact Management measures taken by CTCI
Risks
Transformation
  • As customer behaviors would change due to unstable climate, CTCI must adjust itself to cater to the needs of customers
  • Clients might make changes in terms of their product positioning, which will, in turn, affect our Company's professional workforce deployment costs
  • If the actual impact of climate change intensifies, it will affect people’s willingness to refine and extract oil across the globe. As CTCI's business is still highly dependent on the construction of hydrocarbon plants, and given that there will be rising environmental awareness in the future, CTCI must change its business model if it wishes to ensure sustainable business
  • Decrease in revenue
  • Increase in operating cost
  • Increase in capital expenditure
  • Decrease in asset va
  • Review the possible impact of climate change issues on the market, follow market trends and get information, and develop related green energy engineering technical services
  • Increase brand and marketing efforts, and follow the market trends to provide diversified engineering services
  • Understand the application and development of various corresponding reduction control techniques and increase the diversity of operations
  • Build a relationship with potential business partners and let them know the latest trends or understand customers' needs to suggest measures and related information
  • Promote and implement green engineering technical services to ensure engineering service quality
Regulatory
  • Currently, we do not see that international and domestic laws and regulations have significant and direct impact on CTCI, but continuous monitoring is necessary
  • Governments around the world are gradually formulating regulations restricting greenhouse gas emissions, and international agreements have expressly pointed out global reduction targets
  • The products and services provided by the Company shall comply with environmental-related regulations
    
  • Increase in operating costs
  • Increase in capital expenditure
  • Decrease in asset value
  • Carry out an assessment based on environmental criteria and HSE regulation criteria as stipulated in our internal HSE regulations identification procedures to manage the risks that come with new regulations
  • Assign personnel to study the content and impact of international conventions or protocols, and develop countermeasures early as per international conventions and treaties
  • CTCI establishes, maintains, and implements a series of assessment procedures on HSE regulations identification and compliance
Physical
  • Extreme climate and natural disasters not only may bring potential delays in engineering, damage to engineering structure, and property loss, they may also affect workforce allocation, such as their incapacity to work, or in more severe cases, even lead to incidents involving casualties
  • Regional water scarcity due to low rainfall may affect water consumption during construction
  • The cost of procurement may increase due to changes or reallocations of natural resources globally or regionally
  • If the temperature of the project site is too high, workers must stop working to avoid thermal hazards
  • Increase in operating cost
  • Decrease in asset value
  • Change construction strategies, try to get a longer timeframe, and include risk management costs in the quotation
  • Carry out pre-work training on subjects like thermal hazard safety guidelines, precautions, and personal health management
  • Provide a comfortable work environment for employees and workers, so that they are free from environmental injuries and ensuring that they have sufficient stamina
  • Plan for stable sources of water supply, set up recycling equipment, and reuse water resources
  • Purchase natural disaster insurance
  • Seek long-term supplier partners so we can get lower price for larger quantity of procurement
Opportunities
Transformation
  • Circular economy and waste recycling are starting to replace the linear economy model
  • Changes in global or regional socioeconomic status may increase local demands for new engineering projects or environmental engine ering projects
  • Increase in revenue
  • Decrease in operation cost
  • Decrease in capital expenditure
  • Increase in capital gain
  • Increase in asset value
  • Increase market acumen and service diversity and continue doing market research and local observations
  • The incineration power plants operated by our Group Resource Cycling Business sell the electricity generated from waste incineration back to Taiwan Power Company, which increases our revenue while minimizes the use of fossil fuels
  • Participate in the ""Demonstration and Promotion Plan for the Public Sewage Treatment Plant Drainage Water Recycling of the Construction and Planning Agency" to create sustainable business opportunities for water resource recycling economy
  • Provide products and services with low environmental impact, especially in terms of greenhouse gas emissions
Regulatory When proprietors whom we serve need to comply with greenhouse gas regulations, this becomes our chance to offer them services with green engineering techniques that are more energy-efficient and environment-friendly
  • Increase in revenue
  • Reduction in capital expenditure
  • Continue to develop green engineering techniques to update regulations and standards according to the owners' needs
  • Understand trends in technical applications in the market, apply the best available techniques, and invest in new technical development through collaboration among the industry, government, and universities
Physical As climate becomes more extreme, CTCI has high-quality construction techniques for clients that can help them minimize the loss caused by natural disasters and increase our market competitiveness
  • Increase in revenue
  • Decrease in operation cost
  • Reduction in capital expenditure
  • Increase in capital gain
  • Increase in asset value
  • Develop green engineering technical services or increase existing energy efficiency
  • Use the best available techniques. Green engineering of high efficiency and low emissions are priorities when considering services in their full lifecycle

Greenhouse Gas Inventory

The year 2018 was when for the first time CTCI has completed the greenhouse gas inventory for our headquarters and all construction sites around the world, an important milestone in our green engineering management efforts. In 2019, total scope 1 and scope 2 emissions of the headquarters building are 149.1 and 2,709.7 tons CO 2 e, respectively, while total emissions of scope 1 and scope 2 of all construction sites worldwide are 7,431.4 and 4,774.6 tons of CO2 e, respectively. Furthermore, we have been requested by international investors to fill out CDP questionnaire and received a B score for the last three years.
▼ Greenhouse Gas Emissions (tons of CO₂e)

▼ Greenhouse Gas Emissions (tons of CO₂e)

▼ Power Generation and Power Selling from Incinerators in 2019

Energy Use and Performance

The largest amount of energy consumed at the headquarters building is purchased electricity, while gasoline and diesel are the primary sources of energy consumption during construction processes. These comprise CTCI’s main sources of greenhouse gas emissions. In 2019, the total electricity consumption of the headquarters building and the construction sites combined was 12,729,040 kWh, while total consumption of gasoline and diesel combined was 1,826,329 liters. The total energy consumption of the headquarters building and the construction sites reached 1.10 x 108 million joules, and the energy consumption intensity per capita reached 3.87 x 104 million joules per person. The electricity consumption and energy use intensity (EUI) at the headquarters building both have declined over the past four years (totally decreased by 13.2%), and was 3.2% lesser in 2019 compared to that in 2018.

▼ Energy Consumption-Diesel ( Liters )

▼ Energy Consumption-Electricity ( kWh )

▼ Energy Consumption-Million Joules

▼ Energy Management Performance Indicators
Region Energy Type Unit Annual Performance Goal
2016 2017 2018 2019 2019 Achieved or not 2020
Headquarters Building
Energy Use Intensity (EUI) kWh of electricity/square meter 139.9 138.7 125.5 121.5 132.1 O 123.3
Emission Intensity Tons of CO2e/person 1.8 1.77 1.51 1.38 1.48 O 1.44
Emission Intensity Tons of CO2e/million NTD revenue 0.078 0.067 0.085 1.01 0.076 X 1.059
Energy Intensity kWh/person 3,162 3,177 2,616 2,447.70 2896.5 O 2469.3
Global Construction Sites Emission Intensity Tons of CO2e/million working hours 510 541.4 504.5 401.7 493.4 O 482.3
  • Note 1 :The goals are based on the 2020 energy management performance indicators, the estimated number of people at the headquarters, and estimated number of working hours at the construction sites
  • Note 2:The number of employees indicates the average number of employees at the end of each month of the year
  • Note 3:Million NTD revenue indicates the unconsolidated revenue of the year
  • Note 4:Since the 2020 targets of CO2e emissions per person at the headquarters building and CO2e emissions per million working hours at construction sites were listed as material issues, so it was reduced by 4.4% in 2018