From the Management

Innovative Green Engineering for a Sustainable Earth

The successive black swan events such as "climate change", the "COVID-19 pandemic", "rising interest rates and inflation", and the "Russia-Ukrainian" war in recent years have not only put companies' resilience and adaptability to the test, but have also led to new inspirations and business opportunities. In addition to pursuing innovation and breakthroughs to meet global trends and challenges, CTCI has positioned itself as a "Guardian of Sustainable Earth" and has led our employees to create "Green Engineering" with the core businesses, while working with supply chain partners to implement "net-zero EPC value services", working together to achieve ESG sustainability and net-zero goals. In addition, CTCI is actively promoting sustainable education, nurturing global talents, and continuing to expand the influence of engineering for the common wellness of the community.

Collective ESG efforts by employees to become the top ESG performer in the world

With the brand spirit of "Most Reliable", CTCI links "business operations" to sustainability goals and strives to internalize ESG indicators as the DNA of the Group. As a result of years  of intensive ESG efforts, an external employee engagement survey commissioned by an external organization showed that as high as 78% of our employees recognized our efforts in ESG, ranking first in all indicators. We continued to be recognized by a number of external ratings and awards, including:
　
● We have been selected for inclusion as a component of the Dow Jones Sustainability Emerging Markets Index for eight years and ranked first in the global construction & engineering industry in the most recent two years;
● We have been awarded the top 1% in the Sustainability Yearbook 2023 by S&P Global, being the only company in the global engineering industry to receive this rating.
● Six-time consecutive annual winner of Taiwan Corporate Sustainability Award (TCSA), in the category of "The Most Prestigious Sustainability Awards- Top Ten Domestic Corporates."
● We have been ranked in the top 5% of Taiwan Stock Exchange's Corporate Governance Evaluation seven times;
● We have received a series of outstanding ESG ratings from Morgan Stanley Capital International (MSCI) and CDP Carbon Disclosure, as well as the Sustainability Awards of CommonWealth and Global Views magazines.
● For 10 consecutive years, we have been rated by the CommonWealth Magazine as the first place in the engineering contractor category among the Top 650 Service Enterprises.
● We ranked 60th in the "International Contractors" category by Engineering News-Record, a leading US engineering magazine.
　
It is apparent that CTCI does not "buy" ESG, but instead is committed to sustainable development using its core engineering business. As long as the Group's employees carry out their daily tasks, they can not only perform well in ESG, but will also continue to create excellence in operational performance.
As the leader of Taiwan's engineering industry, CTCI is obliged to drive the industry towards  green transformation and actively reduce emissions in response to the global 2050 net-zero emission goals. To this end, the Group promotes "ESG engagement of all members" and encourages employees to develop innovative "net-zero EPC" proposals from their work, and conducts feasibility assessments through monthly "refinement meetings on sustainability and net zero emissions". So far, 80 innovative proposals for energy saving and carbon emissions reduction have been successfully applied to different plant construction projects. In order for our employees to engage further, the Group has also made "net zero" one of the KPI performance targets.
　
In addition, CTCI actively participates in sustainability organizations and initiatives, making green commitments and becoming a founding member of the "Taiwan Alliance for Net Zero Emissions" and the "Taiwan Net Zero Emissions Association". We also serve as the convenor of the Taiwan-U.S. Carbon Capture, Utilization and Storage (CCUS) to promote the  development of net-zero technologies. We support the Science Based Target Initiative (SBTi) in setting a carbon reduction schedule, and plan the "CTCI Net Zero Pathway" to steadily achieve the 2030 goal of net zero emissions at offices and the 2050 goal of net zero emissions at production sites.

Practicing Net Zero EPC with Green Engineering

Driven by the vision of being a "Guardian of Sustainable Earth" and practicing "net-zero EPC", CTCI aims to create "Green Engineering" by working on three aspects: "Green Technology, Green Contracting, and Green Investment", hoping that all the projects constructed can become energy-saving, reduce carbon emissions, and achieve resource recycling. "Green Technology" refers to the technical solutions to energy conservation and carbon emissions reduction in the process of EPC projects across the design, procurement, and construction stages. By applying "Green Technology", CTCI has seen the following benefits during the operation period of the projects built by CTCI for its customers in 2020 ～ 2022:
● Cumulative CO2 emissions reduction reached 22.2 million metric tons, or equivalent to carbon absorption capacity of 57,121 Daan Forest Parks for one year.
● Total energy savings of 748 million kWh, equivalent to the annual electricity consumption of 183,000 households
● Total water savings of 275.05 million metric tons, equivalent to 319 days of water consumption in Taipei 
● Cumulative emissions reduction of volatile organic compounds is 12,988 metric tons
(The above values will be subject to verification)
　
Green contracting refers to the execution of eco-friendly engineering projects. Take backlog of contracts as an example, the proportion of CTCI's low-carbon and green engineering projects to the total contract amount has increased from 23% in 2015 to 66% in 2022, a substantial increase of 396%. "Green investment" refers to eco-friendly investment in the form of BOO or BOT, such as "reclaimed water plants", "biomass energy centers", and "solar power plants". Take the TSMC Southern Taiwan Science Park Water Reclamation Plant, which was launched in 2022, as an example, we were commissioned by TSMC to be responsible for the design, construction, and 20-year operations of the plant. For this project, we adopted innovative technology and advanced biological treatment procedures with a low pollution load to significantly reduce energy consumption and sludge and achieve multiple benefits, including energy conservation and carbon reduction, reduction of secondary pollution, and zero discharge of wastewater. It is the world's first water reclamation plant that successfully recycles and reuses the industrial wastewater for the semiconductor processes, marking a major milestone in water resource recycling project construction.
　
Through these Green Engineering projects, CTCI has not only striven to achieve the net zero goal but has worked with proprietors and supply chain partners to build a "Green Supply Chain" to safeguard the sustainability of our planet Earth. Starting in 2022, we will require suppliers to disclose their greenhouse gases emissions and set emissions reduction targets. In 2023, we will form a "Net Zero Alliance for Suppliers" to support each other through the alliance. From 2024, we will ask suppliers to conduct "greenhouse gases inventory" and report the amount of inventory to actively demonstrate the effectiveness of carbon emissions reduction, and provide our customers with "zero EPC value services" to move together towards the sustainable net zero goal, creating a triple win situation.

Cultivate Global Talents, Enjoy Mutual Prosperity

In addition to our long-standing commitment to social care, CTCI is also committed to the cultivation of talents. Our employees come from 20 different countries around the globe, and  in addition to building a diverse and inclusive workplace, CTCI has established a digital learning platform, or the "CTCI University," exclusively for CTCI employees in order to nurture and retain talents. As of 2022, more than 1,000 classes have been offered in the six schools of CTCI University, and it is estimated that the number will increase to 1,500 classes in 2023, allowing employees around the world to continue to improve their professional capabilities at anytime and anywhere. This also helps us set a benchmark for talent training within the industry.
　
In order to promote engineering education and to promote the common prosperity of the society, CTCI has further launched another digital platform called "CTCI Learning," where more than 200 courses are selected from the CTCI University curriculum and made available  and for free to the industry peers, the government, academia, and research community, so that we can pass on the engineering expertise and experience accumulated by CTCI for more than 40 years.
　
In addition, CTCI has established the "CTCI Education Foundation (CTCI EF)" in 2016 to promote sustainable engineering construction and education, and to help the country move towards sustainable development. Over the years, we have worked with the "CTCI Education  Foundation (CTCI EF)" to organize forums, seminars, scholarships and other activities to nurture sustainable and innovative talents and to reward sustainable and forward-looking research. In 2022, a total of 22 projects and 155 events have been implemented, which saw more than 10,000 participants. The "2022 Taiwan Sustainable Engineering Symposium" drew nearly 200 leading experts and scholars in the engineering field and professionals to the event. This is an example that shows our commitment to connect the engineering industry to the international trend of sustainability. The results of the long-term efforts of the CTCI EF have been recognized by the "United Nations Framework Convention on Climate Change" (UNFCCC). In 2022, we became the 11th NGO observer from Taiwan, which can help channel the voice of Taiwan to the world.

Conclusion

CTCI is not only "Taiwan's No.1 and the World's Top 100" global engineering, procurement, and construction group, but is also a guardian for the sustainability of the Earth. Every CTCI  employee in the world takes it as their own responsibility to "create engineering projects that take into account of the economy and the environment." In this ESG Report, we provide a detailed record of CTCI's achievements in "Fulfilling Net Zero EPC Mission through ESG Engagement of All Members" in the past year. I would like to thank the 7,000 colleagues for their dedication and participation. Looking ahead to the future, CTCI will continue to provide global clients with faster and better engineering services with the "Most Reliable" brand spirit and join hands with companies in the industry to protect the environment and safeguard the world with innovative "Green Technology."