Environment | TCC GROUP HOLDINGS

Waste Management

Management Approaches

◤	In accordance with ISO 14001 certification, waste management regulations are established at each operation location
◤	All waste from TCC's plants is non-hazardous, and is treated in a non-harmful manner in accordance with regulations
◤	Investment in innovation or R&D to minimize waste

Target

◤	Achieve the "Zero Waste" goal of minimizing waste generation and maximizing resource recovery and reuse
◤	Cement plants set a goal in 2024 to achieve 100% conversion of waste into renewable resources, striving for "innocuous treatment and resource utilization" practices

Treatment Process

◤	General/Industrial waste: Recycled through the treatment with the high temperature in the rotary kiln process an reuse/Treated by certified vendors
◤	Valuable industrial wastes: Recovered by qualified third-party clearing agencies
◤	Investment in food waste treatment in Yingde Plant and Hoping Plant over 27.99 million from 2020 to 2023

Waste Disposal | Unit: metric tons

	2020	2021	2022	2023
Total waste recycled/reused	3,338.61	3,881.23	9,673.86	7,811.95
Total waste disposed	9,231.89	13,843.49	11,565.38	9,397.22
- Waste landfilled	0	0	0	0
- Waste incinerated with energy recovery	0	0	0	0
- Waste incinerated without energy recovery	875.78	1,091.74	212.71	1,686.68
- Waste sent to recycle/reuse	8,356.11	12,751.75	11,352.67	7,710.54

Material Efficiency

◤	Using high temperature, high retention time, high turbulence of the cement kiln used to process and treat industrial waste to achieve a circular economy
	Share of Industrial Waste TCC Treated

TAIWAN

Industry	2022 Waste Treatment Volume (Metric Tons)	Share (%)

Power	665,630.27	57.60%

Construction	201,379.58	17.43%

Steel	151,345.57	13.10%

Environmental Service	94,083.66	8.14%

Semiconductor	18,268.94	1.58%

Paper	8,019.72	0.69%

Chemical Textile	5,279.67	0.46%

Waste Incinerator	5,210.67	0.45%

Self-processed	4,667.69	0.40%

Metal Industry	932.66	0.08%

Water Treatment Plant	643.28	0.06%

Semiconductor Assembly	222	0.02%

Total	1,155,683	100%

MAINLAND CHINA

Industry	2022 Waste Treatment Volume (Metric Tons)	Share (%)

Power	2,549,470	45.27%

Steel	694,716	12.34%

Coal	676,310	12.01%

Mining	73,128	1.30%

Environmental Service	500,478	8.89%

Construction	388,528	6.90%

Chemical	166,644	2.07%

Metal Industry	516,470	9.17%

Paper	83,520	1.48%

Tire	11,927	0.21%

Semiconductor	20,518	0.36%

Total	5,631,708	100%

Consumption of Raw Materials

TAIWAN

Unit: metric ton

	Non-recycled Raw Materials	Recycled Raw Materials	Total Amount of Raw Materials	Percentage of Recycled Raw Materials (Recycled Raw Materials / Total Amount of Raw Materials)
2018	6,623,452	1,741,470	8,364,922	20.82%
2019	6,783,203	1,973,542	8,756,745	22.54%
2020	8,057,356	2,022,504	10,079,860	20.06%
2021	7,493,992	2,138,492	9,632,484	22.20%
2022	6,783,513	2,110,219	8,893,732	23.73%
2023	5,862,906	1,523,551	7,386,457	20.6%

MAINLAND CHINA

Unit: metric ton

	Non-recycled Raw Materials	Recycled Raw Materials	Total Amount of Raw Materials	Percentage of Recycled Raw Materials (Recycled Raw Materials / Total Amount of Raw Materials)
2013	34,311,825	5,046,178	39,358,003	12.8%

Water Management

Policy

TCC has established Water Management Commitment , committed to pursuing sustainable water resource utilization, enhancing water resource management, and improving water efficiency. Pledged to reduce water withdrawal and consumption, comply with relevant regulatory standards, rigorously monitor the quality of discharged water to prevent harm to ecosystems, water bodies, and human health due to wastewater, and ensure that employees and local residents have access to clean water

Management Approaches

◤	100% Cement Plants in Taiwan & Mainland China and RMC Plants obtain ISO14046 Certification
◤	100% Cement Plants in Taiwan and RMC Plants obtain ISO46001 Certification
◤	Since 2022, the cement plant has implemented a water footprint management platform to monitor water supply, water usage, water recycling, and discharge, thereby enhancing water management efforts
◤	In water-stressed regions, TCC assess future water availability based on the WRI Aqueduct Water Risk Atlas

Performance

◤	The world's first cement industry to obtain ISO 14046 and ISO 46001 Certification
◤	Hualien Hoping Plant & Yilan Suao Plant both obtain Alliance for Water Stewardship (AWS) standards Platinum Certification
◤	2020-2023 Zero Business Impact of Water Related Incidents
◤	100% No wastewater discharge in RMC Plants
◤	The cement plant has implemented multiple water pollution prevention measures to ensure that wastewater is discharged only after meeting effluent standards

Targets

Unit: megaliter/metric ton of cementitious materials

◤	Taiwan & Mainland China (weighted average) \| Cement Plants’ Water Consumption Intensity achieves 0.000233 by 2025; 0.000225 by 2030; 0.000220 by 2050
◤	Taiwan \| Cement Plants’ Water Withdraw Intensity -50% by 2030 compared to base year 2016
◤	Mainland China \| Cement Plants’ Water Withdraw Intensity -30% by 2030 compared to base year 2016

Water withdrawal intensity in Taiwan in 2016 is 0.000476 million liters/metric ton of cementitious materials. Water withdrawal intensity in Taiwan in 2019 is 0.000381 million liters/metric ton of cementitious materials. Water withdrawal intensity in Taiwan in 2020 is 0.000364 million liters/metric ton of cementitious materials. Water withdrawal intensity in Taiwan in 2021 is 0.000300 million liters/metric ton of cementitious materials. Water withdrawal intensity in Taiwan in 2022 is 0.000293 million liters/metric ton of cementitious materials. Water withdrawal intensity in Taiwan in 2023 is 0.000307 million liters/metric ton of cementitious materials. 2023 water withdrawal intensity has decreased by 35.5% compared to bae year (2016).

Water withdrawal intensity in Mainland China in 2016 is 0.000350 million liters/metric ton of cementitious materials. Water withdrawal intensity in Mainland China in 2019 is 0.000336 million liters/metric ton of cementitious materials. Water withdrawal intensity in Mainland China in 2020 is 0.000333 million liters/metric ton of cementitious materials. Water withdrawal intensity in Mainland China in 2021 is 0.000324 million liters/metric ton of cementitious materials. Water withdrawal intensity in Mainland China in 2022 is 0.000308 million liters/metric ton of cementitious materials. Water withdrawal intensity in Mainland China in 2023 is 0.000353 million liters/metric ton of cementitious materials.

Note: In 2023, due to the enhancement of dust suppression and control, the addition of desulfurization towers, and vegetation greening, the water withdrawal increased

Biodiversity

Policy

◤	TCC has established Biodiversity Policy and No-Deforestation Commitment , aiming to achieve No Net Loss (NNL) of nature by 2040. Additionally, TCC is committed to accumulating positive impacts globally through Nature Positive initiatives
◤	100% coverage of Biodiversity Management Plans (BMP) in high biodiversity risk areas
◤	100% TCC-owned mines in Taiwan undergo thorough environmental impact assessments (EIAs)
◤	100% Commitment to the recovery and restoration in mining areas. And quarterly monitoring of environmental impacts in mining areas is conducted

International Initiatives

◤	2024 TCC becomes the only Taiwan large-scale construction materials company that join the TNFD Early Adopter
◤	2024 Nature & Biodiversity Report-TNFD Pilot Program has been endorsed by Business for Nature, representing the construction materials industry join "It's Now for Nature" campaign
◤	2022 Signed on “Call to Action” and “Make It Mandatory” of Business For Nature to call on governments to enact ambitious policies to halt nature losses
◤	2022 Taiwan’s first traditional manufacturer to join TNFD Pilot Program
◤	2022 Partook in the Taiwan Nature Positive Initiative (TNPI) of BSCD-Taiwan and connected with the collaborative networks on nature topics to jointly address biodiversity issues

Biodiversity Risk Assessment

Scope

100% Cement Plants and Mines in Taiwan and Mainland China, Hoping Port, and Hoping Power Plant

Operational Activities	Number of Sites and Area
Own operations*	Cement Plant in Taiwan: 2 sites｜68.32 hectares Cement Plant in Mainland China: 12 sites｜741.54 hectares
Upstream activities	Mines in Taiwan: 2 sites｜300.7 hectares Mines in Mainland China: 19 sites｜1,323.35 hectares Hoping EcoPort: 1 sites｜158.8 hectares
Downstream activities
Adjacent areas to own operations	Hoping Power Plant: 1 sites｜27 hectares

*The 24 sites for RMC Plants and Hong Kong Cement cover a total area of 26.05 hectares. These sites are not located near any natural areas. TCC will evaluate the initiation of biodiversity assessment procedures.

Methodology

◤	Nature Sensitivity Mainland China｜TNFD recommended Biodiversity Impact Assessment Tool Taiwan　　　｜Datasets from Ministry of Interior and Ministry of Agriculture
◤	Biodiversity Risks TNFD recommended ENCORE and TNFD Sector Guidance

Results

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Nature Sensitivity

Operations in Mainland China｜Not in IUCN Categories I-IV protected areas, and no IUCN endangered species or wild animals under Grade-I conservation and Grade-II conservation listed in Wild Animal Conservation Law of the People‘s Republic of China. 11 species of terrestrial wild animals of significant ecological, scientific, or social value¹ are potentially distributed in Anshun Mine, none of which is conservation species
Operations in Taiwan 　　　｜Not in IUCN Categories I-IV protected areas. The nature sensitivity in Mine is high, and please refer to 2023 Sustainability Report for the restoration and monitor projects; the nature sensitivity is low in Cement Plants, Hoping Port, and Hoping Power Plant
Two mines (Taibaishan Mine and Hoping Mine) among Taiwan and Mainland China operation sites have high natural sensitivity and have already implemented biodiversity management plans

◤

Biodiversity Risks

Note1: The list of terrestrial wild animals of significant ecological, scientific, or social value is established by the National Forestry and Grassland Administration of China. The new edition published in 2023 includes 1924 species of terrestrial wildlife.

SBTN-AR3T

Avoid	Reduce	Regenerate/Restore	Transform
100% TCC-owned quarries have passed environmental impact assessment. TCC formulates Biodiversity policy and avoids mining in protected areas	Implement Membrane Bioreactors to reduce wastewater pollution, please refer to TCC Sustainability Report CH2.2 Water Resources Management	Prioritize native plants and select species fit for the area to restore the mine, including Hoping Mine Restoration Project and Taibaishan Mine Ecological Restoration Project, please refer to TCC Sustainability Report CH4.2 Forest Restoration	Transform the terminated mine into a hiking trail and flood detention park, connecting urban blue-green spaces and providing flood control service, please refer to TCC Sustainability Report CH4.2 Forest Restoration
	Set up slope protection mesh to mitigate soil erosion
	Remove invasive species, White Popinac, to reduce the ecological threat, please refer to TCC Sustainability Report CH4.4 Nature-based Solutions	Install nesting boxes to provide habitats for bird reproduction in mining area	Shift to a circular economy, reusing waste as a resources to replace the raw materials/fuels for cement, reducing waste and GHG emissions, please refer to TCC Sustainability Report CH2.3 Resource Recycling
Cement plants boost reclaimed water use, enhance water efficiency and avoid freshwater withdraw, please refer to TCC Sustainability Report CH2.2 Water Resources Management	Plant streetlights automatically adjust to sunrise times to minimize light pollution
	Silencers are installed on plant equipment to lower noise	Applying natural organic compost to enhance soil’s physical and chemical qualities	Engage with tribes and local communities, offering economic opportunities, scholarships, emergency funds, and educational support, please refer to TCC Sustainability Report CH5.6 Social Inclusion
	Implement vertical shaft system to convey limestone, reducing the GHG emissions, noise, and dust from transportation, please refer to TCC Sustainability Report CH2.2 Air Emissions Management

Targets

◤	40,000 taxa of plant DNA stored by 2030
◤	90% of the ratio of indigenous tree species in Hoping and Suao Mine
◤	Increase soil carbon sequestration by 70% by 2035

Performance

◤	A total of 756.54 hectares have been mined at operational sites in Taiwan and Mainland China. Of this, 188.96 hectares have been restored and reforested, achieving a recovery rate of 25%
◤	2023 native species preservation ratio is 89%
◤	The survival rate of rehabilitated coral is 80%, with rehabilitation rate approximately 90%
◤	KBCC has conserved 34,646 taxa of plants, a total of 6500 pharmaceutical samples derived from 62 different plant families have been provided
◤	NTHU Molecular Medicine cross-team collaboration, successfully developed a patented new drug for brain nerve regeneration
◤	Climate Resilience｜KBCC participated in the Global Seed Vault Project, backing up and preserving Taiwan’s millet

Share of Indigenous Plants. 2019 native species preservation ratio in Taiwan mines is 86%. 2020 native species preservation ratio in Taiwan mines is 86%. 2021 native species preservation ratio in Taiwan mines is 88%. 2022 native species preservation ratio in Taiwan mines is 88.88%. 2023 native species preservation ratio in Taiwan mines is 89%

2019 biodiversity indicator of plant species in Taiwan mines is 1.77. 2020 biodiversity indicator of plant species in Taiwan mines is 1.90. 2021 biodiversity indicator of plant species in Taiwan mines is 2.30. 2022 biodiversity indicator of plant species in Taiwan mines is 2.31. 2023 biodiversity indicator of plant species in Taiwan mines is 1.91

2019 biodiversity indicator of mammal species in Taiwan mines is 1.45. 2020 biodiversity indicator of mammal species in Taiwan mines is 1.72. 2021 biodiversity indicator of mammal species in Taiwan mines is 1.14. 2022 biodiversity indicator of mammal species in Taiwan mines is 1.36. 2023 biodiversity indicator of mammal species in Taiwan mines is 1.54

2019 biodiversity indicator of bird species in Taiwan mines is 3.03. 2020 biodiversity indicator of bird species in Taiwan mines is 2.90. 2021 biodiversity indicator of bird species in Taiwan mines is 2.96. 2022 biodiversity indicator of bird species in Taiwan mines is 3.20. 2023 biodiversity indicator of bird species in Taiwan mines is 3.22

2019 biodiversity indicator of butterfly species in Taiwan mines is 3.30. 2020 biodiversity indicator of butterfly species in Taiwan mines is 3.40. 2021 biodiversity indicator of butterfly species in Taiwan mines is 2.80. 2022 biodiversity indicator of butterfly species in Taiwan mines is 3.65. 2023 biodiversity indicator of butterfly species in Taiwan mines is 3.70

Note：1).All operating sites od TCC Group are not located in ecological conservation or rehabilitation area. 2).Biodiversity indicators exhibit seasonal variations of different species.

Hoping Mine Environmental Monitoring Report (CH)

Suao Mine Environmental Monitoring Report (CH)

Mine Ecosystem Services Assessment Report (CH)