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Sustainability

Environment

Climate change and natural disasters are becoming increasingly prevalent, threatening business operations and resource allocation. To mitigate the impact of our operations and uphold our commitment to environmental protection, we take concrete actions to conserve energy and reduce our carbon footprint, promoting green building and renewable energy principles, and advocating a circular economy.

Sustainable Environment

Maximize resource efficiency and commit to recycled materials with minimal environmental impact

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Climate Change Governance

Understand climate risks and opportunities and move towards a low-carbon vision in response to the impacts of climate change and extreme weather

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Environmental Education

Uphold green living principles embodied by the Environmental Education Act

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Sustainable Environment

Energy and Resource Management

CHC Group continues to enhance the management policy for energy and resources, which includes energy saving, waste reduction, and water conservation action plans, to ensure proper energy and resource allocation as well as to improve efficiency. CHC establishes management mechanisms and action plans revolving around 5 aspects: environmental protection and energy saving for office buildings, green behavior within business sites, green building, engaging in renewable energy, and improving efficiency for water treatment. Furthermore, CHC also progressively implements digital tools to establish an energy baseline and real-time monitoring system to effectively control energy consumption.

CHC Group’s management strategies for energy and resources are as follows:

AspectManagement Strategy
Environmental protection and energy saving for office buildings
  • Implement high-efficiency equipment, digital tools, paperless workflows, etc., and continue to strengthen management measures for energy and resources
  • Undertake energy-saving improvement for real estate rentals
Green behavior within business sites
  • Improve construction engineering efficiency with BIM technology
  • Adopt formwork system to optimize the construction process and reduce the consumption of building materials
  • Implement integrated management strategies based on local conditions to optimize the utilization efficiency of energy and resources
Green building
  • Modularization of equipment and room types
  • Improve the amount of greening that integrates with the natural environment
  • Introduce the ecological construction method and permeable pavement design
  • Use energy-saving designs for building exteriors
  • Expand product life cycles
  • Design electric vehicle charging stations
  • Implement water saving equipment and rainwater recycling
  • Adopt circular economy design principles
Engaging in renewable energy
  • Recover and reuse biogas
  • Engage in renewable energy projects
Improving efficiency for water treatment
  • Increase water treatment efficiency
  • Monitor real-time energy consumption with smart meters
  • Implement ISO 14001 Environmental Management System and ISO 50001 Energy Management System certification
  • Increase the efficiency of electricity management

Raw Material Resource Management

In order to effectively manage raw material resources, reduce resource waste and costs, and mitigate the impact on the environment, the raw material resource management strategies implemented by CHC Group are as follows:

Management StrategyDescription
Usage statistics and tracking of raw materials
  • Monitor the procurement of construction materials and regularly track changes in the market for emerging eco-friendly materials to make timely adjustments
Development and application of circular economy model
  • The introduction of the BS 8001 Circular Economy standard into the Taipei Nangang Depot Public Housing Project demonstrates our efforts in integrating the concept and practice of the circular economy into the project, and we plan to gradually expand the integration to other projects as well.
R&D of construction method and improvement of operating models
  • Consider how to improve resource utilization efficiency, reduce material loss, and reduce waste generation through innovative construction methods, operating models, and workflow improvements
Waste tracking and management
  • Properly plan measures for the reduction, classification, reuse, and recycling of different types of waste, and hire registered waste removal service providers for disposal of waste, with waste tracking according to law
Reuse of water resources
  • Regularly monitor the water use behavior and water saving efficiency of each operating site; strengthen the Group's management of water related affairs and expertise of water treatment to help promote the sustainable use of water resources in Taiwan

In addition to the above management strategies, CHC also pays close attention to global sustainable development issues. We are committed to using green building materials at a ratio higher than the statutory requirement and prioritizing the selection of residential equipment with energy-saving and environmental protection labels, so as to create a residential space that not only is friendly to the environment but also takes into account safety and comfort. For office equipment and supplies for daily operations, environmental and social considerations are also incorporated into procurement decisions to improve the Group’s green procurement effectiveness.

Waste Management

CHC Group strives to minimize resource consumption at the source, thereby reducing the amount of waste generated. We also properly plan measures for the classification, reuse, and recycling of different types of waste, and hire registered waste removal service providers for disposal of waste.

The main waste reduction action plans implemented by CHC Group are as follows:

Action PlanDescription
Waste classification, recycling, and reuse
  • Set up recycling bins for waste classification and regularly calculate the amount of recycling
Reuse of construction equipment
  • Rent safety fences, construction frames, safety supports, construction platforms, etc., and recycle them for future reuse upon completion of construction
Promotion of waste reduction
  • Encourage the use of reusable cups and tableware to reduce the use of disposable tableware
Improvement of waste management measures
  • Develop management indicators for waste quantification, enhance waste management standards, and establish reduction targets

In 2022, the Group’s total amount of waste was 33,513 metric tons, and the waste intensity per million NTD revenue was 1.04 metric tons. CHC’s waste was 100% disposed of off-site, and the tracking of waste was conducted according to law. Among the waste disposed, about 59% was landfilled, 22% was recycled, 18% was removed, and the remaining 1% was incinerated.

Note: The 2020-2022 inventory boundary includes the Group’s headquarter building, construction sites of CEC, on-going construction projects of CDC, construction sites of HDEC, and water resource centers.

Water Resource Management

CHC Group pays close attention to changes in the water environment. When utilizing water resources, we comprehensively consider relevant policies and regulations, environmental risks, and business needs, striving for effective scheduling and reasonable allocation. Additionally, through water-saving equipment, water supply regulation, recycling, and promotion of water-saving, we continue to improve the utilization efficiency of water resources. In order to strengthen water resource management, the Group also records the water use behavior, water consumption types, water consumption volume, and discharge volume of each operating site.

In 2022, the Group’s total water consumption was 229,723 m3, and the waste intensity per million NTD revenue was 7.15 metric tons. Among the total water consumption, about 55% was used for construction, and 39% was used for water resource treatment. Although the total water consumption increased compared with the previous year, the water intensity decreased by 14% compared with the previous year, showing the effectiveness of the Group’s continuous implementation of water recycling as well as improvement of water resource utilization efficiency and other water-saving measures.

Note: The 2020-2022 inventory boundary includes the Group’s headquarter building, construction sites of CEC, construction sites of HDEC, and water resource centers.

 

Climate Change Governance

Climate Risk Management

In the face of the impacts of climate change and extreme weather, CHC Group incorporates the framework of Task Force on Climate-related Financial Disclosures (TCFD) into its continuous efforts to monitor and manage climate-related risks through four processes: identifying, assessing, verifying, and executing. The Group establishes a list of climate risks, formulates relevant management action plans, and draws up key indicators for measuring and managing climate-related risks and opportunities.

Cross-departmental workshops at all levels are held by CHC Group every year to not only investigate and analyze climate-related risks and opportunities, but also identify the impacts and time horizons of climate risks on the operations, strategies, and finances of CHC and its business sectors, including the level of impact, degree of vulnerability, and likelihood of occurrence. Taking into consideration other factors such as the business development strategies of the Group and the financial impacts on each business sector, a risk matrix is established as a basis for determining the priority of each risk and opportunity and for formulating response strategies and follow-up management action plans.

Based on the identification and assessment results in 2022, climate-related risks have more significant impacts on the Group in the short term (1-5 years) and medium term (5-10 years), including 5 transition risks and 1 physical risk. For major climate risks, CHC actively develops risk management action strategies for each business sector in terms of business strategies, business models, and contract mechanisms. Meanwhile, CHC also establishes relevant indicators and goals to strengthen the integration of climate issues and operational strategies to ensure effective control of climate-related risks.

2022 Climate Risk Assessment Matrix

2022 Climate-related risks and opportunities, financial impact, and management strategy

TypeClimate-Related RisksFinancial ImpactManagement Strategy Opportunities
Transition RisksIncrease in costs of raw materials
  • Increase in operating costs
  • Improve research and advance planning related to raw material procurement, enhance raw material identification, management, and contingency plans, as well as optimize procurement and business strategies
  • Value engineering
Increase in costs arising from GHG emissions

Costs and expenses arising from transition to low-carbon technologies
  • Increase in operating expenses
  • Increase in capital expenditures
  • Step up efforts to integrate technology into construction operations and develop digital tools, adjust product design and service models, as well as increase energy and resource utilization efficiency
  • Continue to develop products and service solutions in compliance with the principles of circular economy
  • Carry out R&D of innovative technologies and construction methods
  • Strengthen industry-government-academia collaboration to share technology, knowledge, and best practices
  • Value engineering
  • Workforce evolution
  • Increased use of reclaimed water and renewable energy
  • Development of new sustainable services and products
Enhancement of GHG emission reporting obligations
  • Increase in operating expenses
  • Continue to carry out GHG inventories according to ISO 14064-1 and regularly disclose information on greenhouse gas emissions
  • Increase in positive feedback and recognition from stakeholders
  • Enhance monitoring of climate and energy risks and strengthen operational resilience
Concerns or negative feedback from stakeholders
  • Decrease in operating revenue
  • Increase in costs of capital
  • Continue to integrate ESG issues into decision-making processes and business models to create sustainable value
  • Regularly disclose ESG management efforts and results, as well as reinforce communication and interaction with stakeholders on an ongoing basis
  • Increase brand value and enhance company reputation
  • Increase positive feedback and recognition from stakeholders
  • Expansion of corporate influence
Physical RiskRising average temperatures
  • Decrease in operating revenue
  • Increase in operating costs
  • Increase in operating expenses
  • Continue to improve and implement heat hazard prevention measures and equipment investment, as well as enhance heat hazard awareness and response training among employees
  • Step up assessments of climate trends in CHC's operating locations and refine resource allocation and response planning
  • Bolster research on emerging building materials, as well as enhance performance verification and assessment
  • Design and construction of green buildings
  • Construction of resilient infrastructure
  • Increase use of reclaimed water and renewable energy

2022 Climate Risk Related Indicators

IndicatorItems
Design and delivery of sustainable
products and service
  • Design and construction of green buildings
  • Design and construction of smart buildings
  • Reclaimed water supply
  • Circular economy
Construction technologies and
methods
  • BIM designs and construction applications
  • Implementation of formwork system
  • Circular economy
  • Electromechanical modularization
Selection and use of materials
  • Use of green building materials
  • Green procurement
Energy use
  • Establishment, monitoring, and improvement of energy usage benchmarks
  • Planning, design, and performance verification of energy-saving work stations
  • Implementation of energy management systems and tools
Waste
  • Waste reduction, classification, recycling, and reuse
  • Circular economy
  • Implementation of formwork system
Greenhouse gas emissions
  • Implementation of the ISO 14064-1 Greenhouse Gas Inventory standard
  • Generation and utilization rate of renewable energy
  • Improvement of energy utilization efficiency
Water recycling and reuse
  • Recovery and reuse of reclaimed water
  • Recovery rate of reclaimed water systems
Stakeholder communication
  • Promotion of communication and exchange with stakeholders

Greenhouse Gas Management

For corporate risks caused by global warming, CHC Group has taken prompt actions to incorporate climate issues into its formulation of strategies and decision-making in management in all aspects. Short, medium, and long term action plans and goals to manage greenhouse gas emissions are also established according to the industrial characteristics and business models of each business sector, including but not limited to: establishing a quantification mechanism for greenhouse gas emissions, increasing the use of renewable energy, improving the efficiency of energy management, etc. Furthermore, the Group also conducts evaluations on the development of renewable energy-related businesses.

In order to understand the emission of greenhouse gases, CHC Group has started implementing the ISO 14064-1:2018 Greenhouse Gas Inventory standard in stages since 2021 to ensure the completeness, accuracy, consistency, and transparency of the quantitative data of greenhouse gas emissions. As of the end of 2022, we had completed the establishment of the greenhouse gas inventory mechanism for the Group’s headquarter building, Tamsui Water Resource Center, Fengshan Water Resource Center, Anping Water Resource Center, and demonstration construction projects. The greenhouse gas emission information of the Group’s headquarter building and Anping Water Resource Center in 2021 has also been verified by SGS Taiwan.

CHC will continue to enhance its greenhouse gas emission management approaches and strengthen the carbon reduction policies and action plans of its business sectors, in an effort to mitigate and adapt to the impacts of climate change as well as to achieve the goal of low carbon operations.

Greenhouse Gas Emissions

Aiming at proactively reducing greenhouse gas emissions, CHC Group regularly reviews the usage of various energy sources and the emission of greenhouse gases in order to have in-depth knowledge of the overall emission trends and energy efficiency and use them as a basis for the management of greenhouse gas emissions and development of action plans.

In 2022, the Group’s total Scope 1 and Scope 2 greenhouse gas emissions were 40,553.85 metric tons of CO2e, and Scope 3 greenhouse gas emissions were 14,668.85 metric tons of Co2e; the greenhouse gas emission intensity calculated based on Scope 1 and Scope 2 emissions was 1.2616 metric tons of CO2e per million NTD revenue.

Note:

  1. Please refer to Page 107 of the Sustainability Report for detailed information on the determination of the inventory boundary and calculation in each scope for each year.
  2. Scope 3 emissions were assessed according to the ISO 14064-1:2018 standard. The quantification includes the emissions from the following types: (1) upstream emissions of purchased electricity, (2) waste treatment services, (3) electricity usage of downstream leased assets, and (4) business travel for employees.

Greenhouse Gas Emission Reduction Actions

The main greenhouse gas emission reduction strategies formulated by CHC Group are as follows:

  • Implement the ISO 50001 Energy Management System standard at operating locations and establish an energy baseline for energy conservation control
  • Optimize energy efficiency and regularly replace low-efficiency and high energy-consuming equipment
  • Implement green procurement and prioritize equipment with advanced energy-saving features and materials with low carbon footprint
  • Promote the recovery and reuse of biogas to reduce the use of fossil fuels
  • Focus on the enhancement of energy efficiency for building operations during the building design phase and incorporate it into the energy-saving design of green building exteriors /lighting/equipment
  • Use the most energy-saving, least resource-utilizing, and least waste-generating methods at different stages of building life cycle to create safe, healthy, comfortable, efficient, environmentally friendly, and low environmental impact living spaces, as well as achieve the goal of co-existence, co-prosperity, and sustainable development of people, buildings, and the environment
  • Strengthen integration of technology into construction operations and development of digital tools, adjust product designs and service processes, as well as increase energy and resource efficiency
  • Develop products and service solutions in compliance with the principles of circular economy
  • Carry out R&D of innovative technologies and construction methods

In addition to the main greenhouse gas emission reduction strategies listed above, the Group also adopts corresponding carbon reduction policies and action plans according to the industrial characteristics of each business sector as well as regularly reviews and makes adjustments whenever necessary to the implementation strategies. In 2022, the Group’s quantifiable greenhouse gas emission reduction was 789.32 metric tons of CO2e, an increase of 58.6% compared with 497.82 metric tons of CO2e in the previous year. Going forward, the Group will continue to monitor various types of energy usage and greenhouse gas emissions, improve carbon management strategies, and promote greenhouse gas reduction actions.

Environmental Education

With the expertise in environmental engineering and water treatment, CHC Group provides comprehensive water resource services, such as reclaimed water treatment and wastewater treatment, and is committed to the sustainable development of water resources and environmental protection in Taiwan through its four water resource centers in Tamsui, Anping, Fengshan, and Linhai. Meanwhile, the Group proactively encourages collaboration between industry, government, and academia as well as promotes the cultivation of professional talents through exchanges of experience in engineering and technology demonstrations. Furthermore, the Group also organizes related experiential activities, public information campaigns, educational courses, and water resource center tours on a regular basis to raise public awareness of the importance of water resources.

These related sessions serviced 1,829 people in 2022, and has serviced 11,168 people since 2019.

Fengshan Water Resource Center

The Fengshan Water Resource Center is the first environmental education park in Taiwan with the theme of water resource circulation. Its landscape is surrounded by wetlands and river corridors, which creates a space where water resources, environment, and ecology can flourish together. The resource center has also received the Environmental Education Facility Certification in 2020. The Water Science and Technology Education Hall has been established in the park and is integrated with digital technology where entertaining and interactive activities are held to explain the impact of geographical environment and climate on the distribution and utilization of water resources in Taiwan, so as to raise public awareness of water conservation.

Tamsui Water Resource Center

The third phase expansion plant area of the Tamsui Water Resource Center started operating in April 2022, with a daily treatment of 56,000 tons of domestic wastewater. Its service areas cover the Tamsui Urban Development Zone, Zhuwei Urban Development Zone, and Danhai New Town areas, with a total of 90,971 households. The center is well-known for persisting in disposing treated water of quality that is higher than the legal effluent standard into Linzi River to ensure a satisfying living environment and a riverside park for the public. The Tamsui Water Resource Center is awarded with the Green Building Silver Label for its main building and also meets other requirements of green building indicators such as base water retention, energy conservation, carbon reduction, waste reduction, etc. Adhering to the core values of "Living with the Environment" and "Integration with Nature", the center continues to organize courses and activities related to water resources and environmental education. Having acquired the Environmental Education Facility Certification in July 2021, the center is an institution that integrates sustainable use of water resources and education.

Anping Water Resource Center

The Anping Water Resource Center is designed with a daily capacity of 160 thousand tons of wastewater treatment. Currently, an average of 139 thousand tons of domestic wastewater is properly treated every day and discharged into Anping Bay. The center’s service areas cover Anping District, Mid-West District, North District, and part of South District and East District, totaling 127,489 households. Moreover, the reclaimed water plant on the southwest side of the center is designed with a daily capacity of 60 thousand tons of reclaimed water treatment. The first phase of its operation has started in March 2023, supplying 10 thousand tons of recycled water per day, and is expected to supply up to 37,500 tons of recycled water per day by 2024. The center has become one of the major water suppliers for the Southern Taiwan Science Park to help mitigate water supply shortages in the greater Tainan area. The Anping Water Resource Center passed the ISO 50001 Energy Management System certification in 2021, and its reclaimed water plant building has also obtained the Smart Building Candidate Certificate and the Green Building Candidate Certificate. The exteriors of the plant building are water-themed and built with metal to create a high-tech feel. To establish a tangible connection to the surrounding mangrove ecosystem, a variety of facilities and green spaces are also established around the building. Furthermore, the establishment of an environmental education center is being planned to serve as a hub for environmental education, community events, and city sightseeing. We will continue to participate in community service activities and organize visiting events to create positive influence.

Linhai Water Resource Center

The Linhai Water Resource Center is the first demonstration project in Taiwan where a wastewater treatment plant and a reclaimed water treatment plant are constructed at the same time. It transports the wastewater from the main sewage lines on Kaisyuan 4th Rd in Qianzhen District of Kaohsiung City to its wastewater treatment plant to be treated, so as to help reduce the wastewater treatment load in Kaohsiung City. The center can treat a total of 55,000 tons of wastewater per day and supply a total of 33,000 tons of reclaimed water to the Linhai Industrial Park, providing affordable and stable industrial water sources. Additionally, it also has flood detention ponds and environmental education areas and was honored with the 2022 National Sustainable Development Award. To complement the features of the harbor city, the Linhai Water Resource Center is built with open spaces, ecological pools, and environmental education centers for the purposes of environmental protection, landscape preservation, ecology education, and recreation. There are also areas for interactive and experiential activities and facilities, including on-site renewable energy systems, current status of water resources in Taiwan, wastewater treatment processes, model displays, water cycle, etc. Last but not least, environmental education courses are provided at the center to guide visitors to understand water recycling methods such as wastewater recycling and treatment processes as well as to promote the importance of water recycling for sustainable development of the environment.