Environmental Protection
Use of Energy Resources
The main energy use of the Company includes purchased electricity from Taipower, purchased electricity from wind power generation Note, and non-renewable fuel (including natural gas, liquefied petroleum gas （LPG）, diesel and gasoline.) There was no use of renewable energy electricity and renewable energy fuels. In addition, the ISO 50001 Energy Management System has been introduced to grasp the changes in energy use in all plants. The total energy use of the Headquarters and Works No. 4 in 2023 amounted to 6,268,561 GJ (of which electricity consumption was 4,399,152 GJ, wind power generation was 74,982 GJ, and non-renewable fuel consumption was 1,794,427 GJ).
Greenhouse Gas Inventory
To cope with global warming and effectively mitigate the impact brought by climate change, Tung Ho Steel has been actively promoting energy conservation and carbon reduction. The ISO 14064-1 organizational GHG inventory system is introduced, and the GHG emissions are calculated by identifying emission sources, establishing activity intensity data, emission data, and setting up relevant management procedures for GHG emissions.
The GHG emissions of the Company can be divided into direct emissions （Scope 1） and indirect GHG emission from the use of purchased electricity （Scope 2）. The inventory of Scope 3 conducted included upstream and downstream transportation and distribution, employee commuting, business travel, transportation of customers and visitors, fuel and energy related activities, waste generated in operations, downstream leased assets, and investments, covering items in Category 3 to 6 (Scope 3).
2023 Company-wide Proportion of GHG by Category
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Unit: tons of CO2e Scope Category Description Emission Scope 1 Category 1 Direct GHG emissions 222,242 Scope 2 Category 2 Energy input 601,851 Scope 3 Category 3 Transportation 310,412 Category 4 Products purchased by the reporting company 1,043,900 Category 5 Use of sold products from the company 167,513 Category 6 Others - Total 2,345,918
1. The GHG inventory of our three works and the Head Office was conducted in accordance with ISO 14064-1 procedures and also passed the external verification by a third party.；The method used to consolidate the amount of GHG emissions: operational control approach.
2. Scope of GHG inventory: From 2019-2022, the scope included the Head Office, Taoyuan Works, Miaoli Works, and Kaohsiung Works, and Daya Works, Taoyuan Fabrication Center, Taichung Harbor Logistic Office, were newly added in 2023.
3. Uncertain assessment of GHG emissions referred to the table of GHG emission coefficient management v. 6.0.4 released by Ministry of Environment and the Technical Specifications for Calibration and Inspection of Measuring Instrument. Power coefficient was calculated with 0.495 kgCO2e / kWh in Scope 2 and that of Scope 3 was calculated using the Simapro database.
4. The Global Warming Potential (GWP) used in the table for Reports before 2020 was the "IPCC Fourth Assessment Report (2007)" version. In the 2021 Report, the source of the Global Warming Potential (GWP) used was the "IPCC Fourth Assessment Report (2013) version. After 2022, the GWP used in the reports is the "IPCC Sixth Assessment Report (2021) version.
5. Types of greenhouse gases include carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulfur hexafluoride (SF6), nitrogen trifluoride (NF3) and so on.
6. Standards, methodology, assumptions and/or other calculation tools used: The energy consumption amount all came from estimates in the receipts or the monthly natural gas consumption statement and material sheet &AS400/ checklist of changes in material inventories by material part number, and there were no estimated values.
7. Category 3 includes upstream transportation and distribution, downstream transportation and distribution, employee commuting, business travel and visitor transportation.
8. Category 4 includes purchased goods 1 (in-plant production related), purchased goods 2 (production from purchased energy), capital goods, disposal of solid and liquid waste and not used in the services above.
9. Category 5 includes downstream leased assets and investment.
Water Resources
In the face of global warming and global climate change, Taiwan has experienced extreme climate in recent years, and the wet and dry periods are becoming more serious, leading to increased risk of water shortage. Therefore, we respond to the national water policy and reduce emissions, save water and increase the cooling water recycling rate. Our four works are located in Guanyin District in Taoyuan, Xihu Township in Miaoli County, and Kaohsiung Linhai Industrial Park. According to World Resources Institute’s （WRI） Aqueduct Water Risk Atlas, the water stress level of the regions our works are located in belong to “Low - Medium risk （1-2）”. The water resource of the Company’s business locations is mainly from tap water （sourced from reservoirs in different regions）note. Currently Miaoli Works has implemented water footprint plan to understand the impact of each stage of the product life cycle on water resources.
The water sources for each business base come from tap water (sources are reginal reservoirs: Shimen Reservoir, Liyutan Reservoir, Fengshan Reservoir, Feicui Reservoir), underground well water with water right, and rainwater collection. We have applied for the approved usage of tap water and underground well water from Taiwan Power Corporation and the local competent authority respectively. In 2023, the total water intake amounted to 2,222.456 million liters (tap water: 1,303.243 million liters, underground well water: 864.549 million liters, and rainwater: 54.664 million liters), and the water discharged amounted to 124.319 million liters, with the total water consumption reaching 2,098.137 million liters. In addition, the process water is recycled and reused after sedimentation. The water recovery rates of all works were all above 91%. Among them, water recovery rate of Taoyuan Works was even as high as 99.22%.
Water Saving Measures
Tung Ho Steel attaches great importance to water resources and continues to work on various water saving measures. In addition to the adoption of the Best Available Technology（BAT） and the direct hot-rolled steel process in Taoyuan Works to effectively reduce the unit water consumption, industrial water （cooling water and process water） is reused with the adoption of a circulation design for the circulation and use of cooling water, soft water, and process water for repeatedly use, and the recycled water will be reused until the water quality cannot be used anymore and then will be discharged to the recycling pool for secondary use to reduce the need for external supplementary water for the implementation of effective use of water resources. For example, process drainage and domestic sewage are collected in the recycling pool after properly treated to provide secondary water as non-drinkable water or for other uses not involving human body contact from the claimed water pipeline or for direct use. The uses of secondary water include green land irrigation, sprinkling in storage area, cooling water for slag, refilling water for the landscape pond, road dust prevention and washing cars to reduce the overall water consumption.
Water Management Strategies and Reduction Targets
The Company attaches great importance to water resources management and has set water management strategies and short- and medium-term reduction targets in 2024 to reduce the consumption and waste of water resources so as to achieve sustainable usage of water resources. Action plans include reducing the volume of effluents, increasing rainwater recovery and reuse, reducing water intake intensity, and introducing the water resources management system.
