Sustainable Engineering

Environmental and Resource Management

Environmental Management System

To stay close to the broader and macro environmental trends, CTCI has taken into account multi-faceted environmental aspects within its business objectives by introducing the ISO 14001:2015 Environmental Management System. To facilitate its effectiveness and help us identify risks comprehensively, we take an integrated approach by combining it with the ISO 45001:2018 Occupational Health and Safety Management System into one HSE management  system. This scope of HSE system spans across engineering, procurement, construction and  commissioning, as well as any controllable and affected activities, products, and service at the construction sites; in other words, those that cover 100% of our revenue scope. Moreover, the system has been validated by a third-party validation company. To ensure the effectiveness of our environmental management system, not only do we carry out regular and nonregular internal auditing, we also invite third-party validators to conduct external audits on the CTCI headquarters and randomly-selected construction sites. Over the past five years, CTCI has no record of heavy fines for major environmental pollution. Our environmental policy is in accordance with the management system, and has been integrated with occupational safety and health policy statement into the HSE policy statement. We commit ourselves to environmental protection and sustainable development in the HSE policy statement and request our vendors to share the same commitment. We also communicate with our suppliers and partners on our commitment, looking forward to influencing them, so that we can together head towards sustainable development.

Energy

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 the construction processes. These comprise CTCI's main sources of greenhouse gas emissions. In 2022, the total electricity consumption of the headquarters building and the construction sites combined was 10,841,713 KWh, while total consumption of gasoline and diesel combined was 2,052,507 liters. The total energy consumption of the headquarters building and the construction sites reached 1.11x108 megajoules and the energy use intensity (EUI) at the headquarters declined over the past four years, which saw a 4.5% decline in 2022 compared to 2021, and a cumulative reduction of 8.6% over the last four years. Moreover, we regularly compile the performance statistics each year and report them to the President. The aim is to analyze the energy efficiency of operations by observing the changes and trends over the years. We then use the results to formulate and implement relevant policies, and use them as reference when setting carbon emissions reduction and energy-saving targets in the future. That way, we can gradually fulfill the low-carbon vision.

Electricity usage continues to decline

① 1 kWh = 3.6 megajoules.
② 1 kcal = 4.184 joules
③ Vehicle heating value=7,800 kcal/liter. Sources: website of the Bureau of Energy, MOEA： "Energy Product Unit Heating Value Table " ≒ 32.6352 megajoules/liter
④ Diesel heating value = 8,400 kcal/liter. Sources：website of the Bureau of Energy, MOEA： "Energy Product Unit Heathing Value Table" ≒ 35.1456 megajoules/liter 
⑤ Since our 2022 target for the energy usage per person at the first headquarters building and the energy usage per million working hours at construction sites is part of our materiality management, the energy usage needs to be reduced by 8.8% between 2018 and 2022 (2.2% reduction per year). As the second headquarters building was completed in 2022, our electricity consumption reduction target is based on 2022 as the benchmark year.
⑥ The energy utilization rate of the first and second headquarters buildings is 2%. 
⑦ Both renewable and non-renewable electricity are included in our electricity target. 
⑧ In 2022, as the pandemic eased, global construction activities surged, leading to a notable rise in gasoline consumption for machinery and vehicles.

Green Energy Investments and Benefits

CTCI aims to actively engage in the green energy industry, in 2023, solar panels were installed at the first headquarters, costing approximately NT$4,990,000. In terms of benefits, it is anticipated to generate 50,000 kWh renewable energy per year. Additionally, in the use of renewable energy, the company consumed 3,000,000 kWh of renewable energy (3,000 renewable energy certificates) at a cost of around NT$15,000,000, with the reduction of 1,485 metric tons of CO2e.

Regarding investments in the green energy industry and equipment, as of the end of the third quarter of 2023, the company made new investments totaling approximately NT$80,203,000. The wholly-owned subsidiary, CTCI Machinery Corporation, made additional investments of about NT$10,916,000 in the equipment and facilities for the Dailin Plant (underwater foundation equipment manufacturing for various wind farm wind power projects). Another subsidiary, ECOVE Solar Energy Corporation, invested approximately NT$151,190,000 in solar energy equipment and facilities. It is estimated to generate 5,100,000 kWh solar energy per year.

Materials

All resources on Earth are limited. In every project carried out by CTCI, we always make precise calculations to understand the minimum amount of resources required and their cost, so as to prevent waste and unnecessary use of materials. That way, our resource management becomes highly effective. During the material selection stage, we would carry out assessment to check whether the material is environmentally friendly. By procuring renewable materials, we can reduce consumption of resources and minimize environmental pollution. For the same reason, we support suppliers who carry out their own environmental management and encourage them to develop and produce renewable materials. In determining which kind of building materials we should use, CTCI takes into account factors such as durability, maintainability, VOCs, hazardous substances, and radiation hazard. Furthermore, through newlyintroduced life cycle cost analysis software (EEA), we can calculate the energy consumed and the costs incurred within the entire life cycle. Factors that we take into account in the analysis include: economic factors, such as loans, cash flow, and recovery period; internal and external energy consumption and costs, such as costs incurred from operation, maintenance, decommissioning, and demolition. Each project is analyzed based on a 20-year life cycle.

Water Resources

In terms of the use of water resources, the water for the headquarters building is directly supplied by public tap water, and there is no additional water taken from other water bodies. All wastewater is discharged to the sewerage. In 2022, the water consumption of the headquarters building has increased by 20% compared with 2021, failing to reach the reduction target. Therefore, many automatic sensor faucets will be in place to reduce the consumption of water resources, and water will be saved by controlling the water output and water output time. Many water-saving signs are also in place to remind colleagues to save water. Both the top floor of the building and the work sites are equipped with rainwater recovery systems. The recovered water is used for irrigation of open space vegetation or for construction.

　
Water Consumption (in cubic meter)

Air Pollution

Before commencement of construction work, all CTCI staff need to go through trainings on the requirements of the Air Pollution Control Act. They need to be fully aware that the air pollutants emitted must meet standards. In the case of inevitable polluting operations within the legal boundaries, such as temporary emissions during construction or commissioning, which may affect the quality of life of neighboring communities and impact the environment, we would always notify the residents in advance on the time and details of emissions to avoid misunderstanding and panic. No open burning, materials transportation, or other operations that would produce granular pollutants detrimental to human health and natural ecology are allowed at construction sites. In the event of a contingency that sees leakage of large amounts of air pollutants or toxic gases, the site manager would carry out emergency response measures and notify local authorities within the timeframe as prescribed by law.

Soil and Groundwater

Before a construction work begins, we would draw up water usage and sewage plans. The water for construction use is supplied by the city water system. Since we do not use a lot of water, the impact from the suspension of water supply is low. Stringent environmental monitoring is in place during construction to control the quality of effluent released from the construction sites. No waste materials or pollutants are allowed to be disposed of into water bodies or into areas within the designated distances from water bodies. When it comes to storage of major materials as announced by the authority, we would install facilities to prevent groundwater pollution, followed by ongoing monitoring and recording. In the case where wastewater is emitted in emergent circumstances or by accident, and poses severe hazard to drinking water safety or the environment, we would take emergency response measures and notify the local environmental authorities within three hours.

Waste

Waste generated at the headquarters building is disposal of through incineration. The amount of waste generated in 2022 is 55.04 metric tons, or 1.26 metric tons less than the previous year. Paper, metal, plastic, and food waste are all recycled. In response to the increasing amount of lunchbox waste during lunchtime, we now additionally recycle paper lunchboxes and plastic lunchboxes at lunch time.

Noise Prevention & Control

In consideration of the health and safety of the operators and the construction quality, CTCI prioritizes the use of low-noise machinery, equipment, vehicles, and appliances. If it is expected that the noise pollution caused by construction may bring public protests, we would pay special attention to prevent pollution and public protest. Complaints are not limited to personal visits or in written forms; we consider all opinions and grievances regarding pollution and related matters voiced in any form, at any opportunity, on any occasion. All complaints are handled in the most efficient manner possible. A response regarding the official treatment plan and outcomes will be given to the person(s) filing the complaints. All reported incidents must be listed in detail, handled, tracked, inspected, and sent regularly to the project managers for review. Noisy operations need to be performed outside construction sites whenever possible or to be performed by contractors. When circumstances demand the use of equipment classified as "noise-prone" by the government, we would always apply for permits before carrying out installation and operation work. Piling is conducted using noiseless methods when there are concerns about noise pollution, or is to be done at appropriate hours of the day. Night-time construction would be avoided whenever possible. Drivers of vehicles outside construction sites need to follow instructions and will have their vehicles inspected in terms of noise. They are required to drive on designated routes, in the designated time, with designated speed limits, and with noise-reduction equipment installed.

Transportation

When selecting transportation contractors, CTCI prefers the ones who share our vision. We prefer those who have ISO 14001 Environmental Management Certification. To reduce the environmental impact from transportation, we use local equipment and materials whenever possible and procure locally to reduce transportation distance and conserve energy. We prioritize low-carbon, low-sulfur and low-pollution forms of transportation. For example, energy-saving sea transportation is preferred over air transportation, or require the forwarder to book a ship with a shipping company that complies with the 2020 International Maritime Organization (IMO) regulations on the use of low-sulfur fuel oil. In terms of sea transportation, since newly built ships have better fuel efficiency and can conserve oil, we use only those ships that are aged less than 15 years. During LCL or consolidation, cargoes with close delivery locations or shipment periods can be combined into a single batch for transportation if the project schedule allows.

Biodiversity

CTCI's primary operational sites consist of the headquarters buildings and global construction sites. The headquarters is located in a basin environment without any protected  habitats. However, the Company places importance on the ecological environment and engages in planting suitable vegetation to enhance greenery and minimize environmental impacts. In the execution of various engineering projects, equal emphasis is placed on the ecological conservation of project sites. This includes conducting ecological assessments at each stage of public infrastructure construction, such as design and construction. Ecological  professionals are involved in collecting, investigating, and analyzing ecological data, and they assist in integrating the concept of ecological conservation into the project. Ecological conservation measures are proposed and implemented during project execution. Prior to the  construction of global project sites, ecological surveys and necessary environmental impact assessments are conducted for the surrounding environment. During project design, local species, habitats, and ecological environments are taken into consideration, and efforts are made to avoid important conservation areas and special habitats. Mitigation, restoration, and compensation strategies are proposed to minimize and restore the environmental impacts.

Policy Commitments

◈ Commitment to Protect Natural Ecology and Biodiversity

❶ Provide products or services that comply with Zero Deforestation standards and avoiding biodiversity hotspots in our operational sites.
❷ For existing operational sites that encompass biodiversity hotspots, we commit to implementing strategies of avoidance, mitigation, restoration, and compensation to reduce the impact on those areas.
❸ Regularly monitor the ecological environment surrounding operational sites and assess their impact.
❹ Implement biodiversity risk identification, including our own operation sites, adjacent areas to our own operations, upstream, and downstream activities.
❺ Support biodiversity conservation activities or initiatives.
❻ Engage with upstream and downstream value chains and stakeholders to achieve the aforementioned commitments.

◈ Ecological/Environmental Conservation Strategy and Planning

CTCI establishes a dedicated unit, the Sustainability and Net Zero Office, in collaboration with the Sustainability and Net Zero Implementation Team, to jointly promote sustainability-related matters across departments. The unit operates under the supervision of the Sustainability Superintendent. The Sustainability Superintendent and the Chief Sustainability Officer regularly report the outcomes of nature conservation and biodiversity protection to the Sustainability and Net Zero Committee established under the Board of Directors.

CTCI has set targets for biodiversity conservation. By 2030, our operational sites aim to achieve No Net Loss (NNL) and adhere to Zero Deforestation standards. By 2050, our operational sites strive to achieve Net Positive Impact (NPI), while our value chain aims for No Net Loss and compliance with Zero Deforestation standards.

◈ Interface between Operational Activities and the Natural Environment

Based on the Taiwan Biodiversity Network Database from the Council of Agriculture Executive Yuan's Endemic Species Research Institute, CTCI conducted a biodiversity hotspot analysis of its domestic operational sites using species distribution data from 2000 to 2019. The threshold for identifying biodiversity hotspots in various taxonomic groups on the island of Taiwan was set as the top 5% of grid cells containing the highest species richness. The comparison results indicate that all domestic operational sites of CTCI are located outside of biodiversity hotspots. For the overseas operational sites, comparisons were made using data from the World Database on Protected Areas (WDPA) by Protected Planet. The results indicate that the overseas operational sites are not located in adjacency to natural protected areas. Taking Malaysia as an example below. Taking Malaysia as an example below.

Based on the ecological survey database provided by the Forestry Bureau of the Council of Agriculture, Executive Yuan, the Company has gathered 
information on species diversity for its own operational sites and neighboring locations in Taiwan. This data is used to identify significant biodiversity areas. The following table presents species information for projects adjacent to sensitive zones.