｜ESG
Climate Action and Environment Management / Energy and Greenhouse Gas Management
Climate Action (TCFD)
Energy and Greenhouse Gas Management
Waste Management
Ecological Protection
Material Topics

SDGs

Environmental and Energy Management Policy
Walsin Lihwa has formulated a series of policies and visions for carbon management, net zero and resource recycling in response to the issue of climate change. By increasing investment in software and hardware year by year in energy conservation, carbon reduction, resource recycling and strengthening sustainable green supply chain management, we are committed to establishing a more environmentally friendly and sustainable operating system. The structure is as follows:
Management at source
Use of green materials including scrap metals, renewable energy development such as solar power, and smart equipment implementation.
Manufacture process control and management and emission and pollution reduction
Chemical energy replacement of some electricity for electrical steel-making furnaces and manufacture process improvement, e.g., pure oxygen combustion to enhance equipment performance and yield.
Recovery and recycling
Waste recycling such as plastic pellets regenerated from waste plastics and regeneration of waste acids, water resource recycling such as reuse of cooling water from manufacture processes and environmental protection equipment, reuse of reclaimed water, energy recycling such as recovery of waste heat., and furnace slag processing for reuse.
Management System and System Construction
Walsin Lihwa has introduced management systems such as ISO 14001 environmental management system, ISO 50001 energy management system, ISO 14064 greenhouse gas inventory, ISO 14067 product carbon footprint and ISO 46001 water resource efficiency management system. Through a comprehensive environmental management system, we strengthen energy resource management, improve resource utilization efficiency, reduce the impact of operations on the environment, and move towards a circular economy.

▪Production and operation bases have passed ISO management system standards coverage related to environmental sustainability

Environmental Protection Expenditure in 2023
Walsin actively introduces advanced recycling equipment and combines a number of management systems and methods to reduce the negative impact of production activities on the environment, including reducing emissions and improving recycling rates. We also introduced a complete environmental monitoring system to inventory potential contaminated areas and take preventive and improvement measures in advance.
Energy Saving and Carbon Reduction Management
In order to achieve the company's "net-zero carbon emissions" goal, Walsin not only applies scientific methods to set reduction targets and take measures, but also combines external supply chains to jointly promote energy management and carbon management.
Carbon Management Objectives at Walsin Lihwa
Energy Efficiency Management
The order of energy consumption in 2023 is electricity, natural gas, gasoline, diesel, and purchased steam.; The total calorific value of direct energy and indirect energy is 10,325.69x103 GJ, the proportions are 39.82% and 60.18% respectively. The energy usage and calorific value proportion of each product are as follows:

▪Energy Consumption by Individual Business Groups in 2023

Note：
  1. Energy consumption = Fuel consumption x Fuel caloric value (based on the Bureau of Energy's 2014 manufacturing industry annual audit report)
  2. The above information refers to the statistics of the Wire and Cable (Yangmei Plant, Hsinchung Plant, Shanghai Walsin), Stainless Steel (Yenshui Plant, Taichung Plant, Yantai Walsin, Changshu Walsin, Jiangyin Walsin (Specialty Alloy Materials), and Walsin Precision) and stainless steel (CAS) products in Europe
  3. None of the above is renewable energy
  4. Dongguan Walsin and Jiangyin Walsin (steel cable) production have ceased productions in September 2023, and the total calorific value from January to September was 65.72×103 GJ and 181.58×103 GJ

▪Types of Energies Consumed

▪Types of Energies Consumed

Note 1: The energy intensity of stainless steel and wire and cable operations is gross heating value (gigajoule) / output (tonne)
Note 2: Heat values are based on the unit heating values of energy products in the 2014 energy statistic handbook.
Note 3: A gigajoule is 109 joules.
Note 4: Disclosure of CAS information from 2023.
In line with the national energy-saving goals, we will continue to promote various energy-saving measures, optimize the energy management E-system platform and conduct comprehensive inspections. In 2023, all plants in Taiwan and overseas completed the construction of the ISO 50001 energy management system platform and setting of various equipment performance indicators. We plan to pass system verification annually, and use the energy management platform to explore key indicators for hot spot analysis to find opportunities for energy conservation and carbon reduction. In 2023, the unit product emission intensity of wires, cables and stainless steel in Asia increased by 15% compared with 2022 (due to changes in product structure), and the total calorific value decreased by 4% compared with 2022. The energy consumption reduction target per unit product in 2024 is set to decrease by 1.5% compared with 2023.
Comprehensive Energy Saving and Carbon Reduction
Since 2015, each factory has established an energy-saving and carbon-reducing management organization, set annual goals and various energy-saving and carbon-reducing measures, held regular meetings to review and built an E-system for energy management for real-time management.
In 2021, 5.5 MWp of renewable energy (solar energy) was planned for self-use, and 4.9 MWp of grid-connected power generation capacity of 1,054,868 kWh has been completed in 2023; The remaining 0.6 MWp of solar energy is expected to be completed in 2024.
In 2022, the Environmental, Safety and Health Management Committee adjusted the five-year energy management plan on a rolling basis and set an annual power saving and carbon reduction target of 1.5%.
In 2023, all four factories in Taiwan met the 1% annual power saving rate requirement of the Energy Bureau of the Ministry of Economic Affairs, with an average power saving rate of 1.54%. Taiwan and oversea plants have proposed a total of 133 carbon reduction plans, with a total energy saving rate of 1.64%. Total carbon reduction is 10,089 tonnes CO2e in the Asian region and 2,405 tonnes CO2e in the European region (across 4 carbon reduction initiatives).

▪Net Zero Promotion Strategy

▪Carbon Reduction from 2015 through 2023

Unit: tonne CO2e
Spotlights
Outstanding Manufacturer for Voluntary Greenhouse Gas Reduction
Each Walsin Lihwa plant sets reduction targets and implements relevant measures, and combines external supply chains simultaneously to jointly promote energy management and carbon management. In 2023, the carbon reduction performance of the Taiwan factory was 5,949 tonnes of CO2e, which received the title of "Outstanding Manufacturer of Voluntary Industrial Greenhouse Gas Reduction in 2023" by the Ministry of Economic Affairs.

▪Energy Saving at Walsin Lihwa in 2023

Note 1: The CO2e emission equivalent is calculated based on the emission coefficients of electricity, natural gas, petroleum, steam, diesel, and/or others used at individual sites.
Note 2: Scope one: Natural gas, diesel, and others. Scope two: Electricity and purchased steam.
Note 3: The emission amount before equipment replacement or renovation and manufacture process adjustment is the benchmark for carbon reduction calculation.
Note 4: Decreased energy consumption = Amount of energy saving x Caloric value (based on the Table of Heat Content of Energy Products in the Burau of Energy's 2014 Energy Statistics Handbook).
Note 5: The base year is 2014.
Greenhouse Gas Inventory

▪Environment, Health, and Safety Information Platform

In 2015, Walsin Lihwa started to implement and optimize its environment, health, and safety information system for greenhouse gas inventory and product carbon calculation by gathering data on greenhouse gas emissions at its individual plants for the Environment, Health, and Safety Committee to conduct quarterly reviews of how such emissions are managed.

ISO 50001 Energy Management System

In 2018, the plants in Taiwan started to adopt the ISO 50001 standard based on which there is 5-year energy management program from 2022 to 2027 for dynamic reviews of the status at individual plants every year. The ISO 50001 and ISO 14064-1 will be implemented step by step by taking into account of both production and environment, health, and safety improvement at the plants.

ISO 14064-1 Greenhouse Gas Inventories

In 2015, the Taichung Plant and Yenshui Plant passed ISO 14064-1 certification; In 2020, the Hsinchuang Plant and Yangmei Plant, and overseas factories in 2022, introduced the ISO 14064-1:2018 standard and conducted internal greenhouse gas emissions inventory; In 2023, the Taiwan and oversea plants completed the ISO 14064-1:2018 verification.

ISO 14067 Product Carbon Footprint Standard

In 2023, four plants in Taiwan completed the ISO 14067:2018 product carbon footprint inventory, and two products of the Hsinchuang Plant completed the third-party product carbon footprint verification.

▪Company-wide Carbon Disclosure Timeline

In addition, Walsin continues to pay attention to the development of Emission Allowance, EU border taxes, Taiwan carbon fees and the development of internal carbon pricing, and participates in the operation of the mainland carbon trading market to ensure future carbon quotas and the Company's sustainable operation and development.

▪2023 Greenhouse Gas Inventory Plan for Oversea Plants

Plant Inspection:Shanghai Walsin, Jiangyin Walsin (Specialty Alloy Materials), Changshu Walsin, Yantai Walsin, Walsin Precision
Product Carbon Footprint Verification at Taiwan Sites

▪Greenhouse Gas(GHG) Emission

▪Greenhouse Gas Emission Intensity of Each Product (Taiwan and Overseas(Asia))

Product Carbon Footprint Verification at Taiwan Sites
Greenhouse Gas Emission (Scope 1 and Scope 2)

Since 2014, we have promoted greenhouse gas emission intensity inventory and various energy reduction plans. The emission intensities of Taiwan plants and oversea plants in 2023 (excluding commercial real estate) classified according to product characteristics (wires and cables, copper wires, stainless steel) were 0.352, 0.134 and 0.584, respectively; Decreased by 4.9%, decreased by 4% and decreased by 2.1% respectively compared to the base yearNote; In terms of overall greenhouse gas emissions, the total emissions of Taiwan and oversea plants decreased by 6.9% and 24.61% compared with 2022 (oversea plants in Jiangyin Walsin (Steel Cable) and Dongguan Walsin ceased production from September 2023).

Walsin Lihwa shall continue seeking each and every possible emission reduction solution to reduce greenhouse gas emissions per unit of product by 15% in 2030 as compared to that in 2014 to help expedite low-carbon economy development.

Note: 2014 used to be the benchmark year for comparison of greenhouse gas emissions at Walsin Lihwa but the benchmark year is now 2020 because of product structure considerations and a plant sale.

▪Scope 1: Direct Greenhouse Gas (GHG) Emission

▪CAS Greenhouse Gas Emissions in 2023

▪Scope 2: Indirect Greenhouse Gas (GHG) Emission

Note：
  1. Scope One and Two refer respectively to direct and indirect energies, while greenhouse gas (GHG) emission includes CO2, N2O,CH4, HFCs,SF6.
  2. Taiwan sites included: Yangmei plant, Hsinchuang plant, Yenshui plant, Taichung plant.
  3. Asia sites included: Shanghai Walsin, Yantai Walsin, Changshu Walsin, Jiangying Walsin (Specialty Alloy Materials), Walsin Precision.
  4. Europe site: Cogne Acciai Speciali S.P.A. (CAS)
  5. The unit of emission is CO2 emission expressed in tonnes and the unit of intensity is CO2 emission expressed in tonnes/product output expressed tonnes.
  6. The emission coefficient is based on the 6.02 version of the greenhouse gas emission coefficient management table (IPCC 2nd Assessment Report in 1995) published by the Environmental Protection Administration for self-auditing. Global warming potential (CWP) is dealt with by the operational control method.
  7. 2014 is the company's benchmark year for energy saving solution implementation.
  8. Scope Two emission is calculated by the location-based method.
Greenhouse Gas Value Chain Inventory (GHG Scope 3)

Walsin Lihwa follows ISO 14064:2018, GHG Protocol and third-party verification to identify carbon emission activities in the value chain as a reference for formulating emission reduction strategies. In 2023, we established the Walsin Lihwa Low Carbon Alliance and promoted the sustainable supply chain plan. Together with our value chain partners, we are building a sustainable business model.

In the 2023 greenhouse gas inventory scope 3 project, Walsin adopted the materiality identification standard criteria to identify upstream raw material emissions from purchased products and services, upstream emissions from fuel and energy-related activities, and disclosure areas in Scope 3, taking into account evaluation factors such as emissions, improvement potential, and quantification methods.

Note：
  1. Taiwan sites included: Yangmei plant, Hsinchuang plant, Yenshui plant, Taichung plant.
  2. Asia sites included: Shanghai Walsin, Yantai Walsin, Changshu Walsin, Jiangying Walsin (Specialty Alloy Materials), Walsin Precision.
Promotion of the Green and Sustainable Supply Chain and Walsin Low Carbon Alliance