GHG Management


Alternative Clinker & Clinker-to-Cement Ratio

Management Approaches
According to the International Energy Agency (IEA) recommendations, a key area for carbon reduction in the cement industry is to lower the clinker-to-cement ratio
In addition to investing in alternative raw materials or limestone for clinker production, efforts are continuously made to search for and test new materials as substitutes for clinker
In Taiwan, it is required to comply with CNS 61 regulations, where the addition ratio of cementitious materials in cement must be less than 10%
The Cape Verde plant utilizes natural volcanic ash as a substitute for clinker, with 0 kg of carbon emissions per ton of volcanic ash, directly replacing traditional clinker which has a carbon emission of 750-800 kg per ton
The Ghana plant utilizes the chemical properties of kaolin to reduce the use of thermal energy and improve energy efficiency

Clinker-to-Cement Ratio

Target | Taiwan & Mainland China (weighted average)
2025: 0.796
2030: 0.780
2050: 0.570

Performance | Taiwan & Mainland China (weighted average)
2020 2021 2022 2023
0.826 0.823 0.816 0.799

Alternative Materials and Fuels for Cement Production
The Best Way to Effectively Reduce Carbon Emissions

Alternative Raw Material
Management Approaches
Actively engaged in the development of alternative materials, utilizing recycled resources as alternative raw material
Continuously develop alternative raw material sources such as calcium silicate boards and construction waste

Target | Taiwan & Mainland China (weighted average)
2025: 21%
2030: 22%
2050: 25%

Performance | Taiwan & Mainland China (weighted average)
2020 2021 2022 2023
16.4% 18.2% 19.6% 18.7%


Alternative Fuel
Management Approaches
Actively utilizing diverse alternative fuels, and continue to develop categories such as waste wood, waste plastics, waste textiles, and non-hazardous oil sludge in 2023
In 2023, TCC and ITRI jointly completed the construction of the “SRF with high heating value co-firing and clean integration system for cement kiln”, collaborating in developing high calorific value SRF materials and co-firing technology
Due to regulatory restrictions in Taiwan, it is difficult to effectively increase the TSR of alternative fuels. TCC is actively discussing with the authorities about the possibility of adjusting the chloride ion limit (240ppm)

Target of Thermal Substitution Rate of Alternative Fuels|Taiwan & Mainland China (weighted average)
2025: 21%
2030: 22%
2050: 25%
Oversea Cement Business
OYAK Aslan Plant | 2030: 70%
OYAK Ankara Plant | 2030: 65%
CIMPOR Alhandra Plant | 2025: 80%
CIMPOR Souselas Plant | 2024: 65%

Performance
Thermal Substitution Rate of Alternative Fuels (%) | Taiwan & Mainland China (weighted average)
2021 2022 2023
1.2% 7.65% 12.6%
Leveraging local advantages, the residual materials from the harvest of specialty crops will be tested as alternative fuels
By utilizing cement kiln co-processing technology, the removed alien species White Popinac is converted into biofuels, not only achieving resource recycling but also helping to maintain urban natural ecology

Energy Efficiency

Management Approaches
100% plants in Taiwan and Mainland China obtained ISO 50001 certification

Target
Improve energy productivity by 50% by 2040 relative to 2016 baseline year
Continuously strengthen power generation by waste heat recovery and energy-saving technological improvements

Performance
TCC energy efficiency exceeding the target, selected in EP100 ”2023 Annual Report”

Power Generation by Waste Heat Recovery

TAIWAN & MAINLAND CHINA
Electricity from waste heat recovery in Taiwan and Mainland China in 2023 is 1,393,053 MWh. Electricity purchased/electricity used in Taiwan and Mainland China in 2023 is 65%. Carbon reduction with waste heat recovery in Taiwan and Mainland China in 2023 is 452,064 metric tons. Taiwan and Mainland China 100% installed waste heat recovery system. Reduction of the energy consumption for processes for Taiwan and Mainland China is 35%
Note: Due to the staggered production plan from 2022 to 2023, the power generation by waste heat recovery decreased

Scope 3 Management

Management Approaches
While reducing carbon emissions in its own cement industry, TCC goes further to influence the value chain to promote carbon reduction, aiming to become a company that proposes climate solutions and has a significant impact on carbon reduction. This initiative is intended to drive and collectively achieve net-zero targets. In 2023, TCC initiated a Scope 3 inventory in Taiwan, and has obtained a third-party verification.

Inventory Scope | Taiwan (Expected to expand to Mainland China in the end of 2024)
Item Cement Plant RMC Plant Operation Headquarters (including Low-carbon R&D Center)
Purchased Goods and Services 119,757.3995 94,281.9292 6,250.4446
Capital Goods 46,725.4472 256.1567 645.109
Fuel- and Energy-Related Activities Not Included in Scope 1 or Scope 2 84,034.7929 1,557.1936 306.7983
Upstream Transportation and Distribution 83,014.8159 68,509.5613 4,737.9010
Waste Generated in Operations 20.6384 103.0682 8.172
Business Travel 15.7670 262.4480 149.1485
Employee Commuting 555.3120 357.7248 96.7739
Upstream Leased Assets 17.7676 307.5683 0
Downstream Transportation and Distribution 66,973.7580 15,699.5425 0
Processing of Sold Products 27,736.7582 9,506.9559 0
Use of Sold Products 0 0 0
End-of-Life Treatment of Sold Products 69,448.3364 59,670.1330 0
Downstream Leased Assets 268.1522 14,785.1278 670.0480
Franchises 0 0 0
Investments 0 0 5,504,226.926
Total 498,568.9454 265,297.4095 5,517,091.3222
Unit:tCO2e

Methane

The National Oceanic and Atmospheric Administration (NOAA) reported in 2021 that the increase in atmospheric methane levels reached the largest magnitude measured in 40 years. The COP26 began to focus on the issue of methane, and more than 150 countries have now signed the Global Methane Pledge (GMP). Methane has a global warming potential 27.9 times that of carbon dioxide, making it a significant contributor to climate change, especially since landfill waste is one of the main sources of methane emissions. Utilizing the high temperatures at the core of the cement industry, TCC provides co-processing services for domestic waste in cement kilns, avoiding the methane issues caused by waste accumulation and committing to reducing the impact of methane.

TCC DAKA Resurce Recycling Center
TAIWAN
  • TCC DAKA Renewable Resource Recycling Center (RRRC) is officially launched in December, 2023
  • Assist the local government in solving the methane pollution problem caused by garbage accumulation
  • In 2023, RRRC assisted in handling 13,762 tons of household waste and piled garbage in Hualien, which would result in 810.97 tons of methane emissions if treated by landfilling
The Yingde Plant in Guangdong
MAINLAND CHINA
  • Food waste disposal in landfills is also one of the major sources of methane
  • The Yingde plant in Guangdong has established a food waste treatment center to reduce methane emissions
  • The annual processing volume of food waste is approx. 61.2 tons, which would result in 2.75 tons of methane emissions if treated by landfilling
Note 1: The calculation of methane emissions from solid waste landfilling is based on the formula provided in the 2024 Republic of China National Greenhouse Gas Inventory Report, assuming the landfilling method is a properly managed landfill
Note: 2 The composition of Hualien's garbage is derived from the 2023 Environmental Protection Department's analysis of the nature of garbage in various counties and cities (wet basis), with paper at 48.13%, textile at 3.76%, wood/bamboo/straw/leaves at 3.60%, kitchen waste at 12.60%, and plastics at 30.50%

Low-Carbon Construction Materials

Portland limestone type IL cement

Carbon reduced by 15.4% compared to Portland Type I (base year: 2016)
Lower carbon, stronger early strength for general construction and engineering
Expected to 100% replace the traditional Portland Type I by 2026
Production in line with CNS 15286

MOE Gold-rated Green Mark
MOE Carbon Footprint Label
MOE Carbon Footprint Reduction Label
ISO14067 Carbon Footprint of Products
MOI Green Building Material Label (to be issued in Q3 2024)
BSMI CNS Mark
Portland limestone type IL cement concrete

Consistent slump, superior workability
Stronger early strength
More actionable, lower carbon emissions
High durability
For general construction and engineering

MOE Carbon Footprint Reduction Label
Taiwan Architecture & Building Center Recycling Green Building Material Label
ISO14067 Carbon Footprint of Products
Good Ready-Mixed Concrete (GRMC)
MOI Green Building Material Label (to be issued in Q3 2024)

Features of UHPC: -75%thickness of building walls, extend lifespan of building to about 120 years, and -60% carbon emissions compared to traditional concrete.

Construction Waste Solutions

In 2023, TCC invested in the recycling and treatment of construction waste, planning to reuse it as alternative raw materials or fuels for cement or concrete, and continued to develop sources of alternative materials such as calcium silicate boards and construction waste.

Construction waste can be used as filler for graded aggregate, fine aggregate or admixture for concrete, and alternative clay for cement
The remainders are sorted as alternative fuels for the cement plant

Construction Waste Recycling Material
Step 1. Recover construction waste, with strict requirements for materials and transportation. Step 2. Sort and crush. Step 3. The Low-carbon R&D Center conducts experiments and research. Step 4. Cement plants or RMC plant engages trial production, while the Low-carbon R&D Center verifies product quality and strength. Step 5. Officially reuse.
Construction Waste Recycling Material
Alternative Raw Material: 70%
Alternative Fuel: 20%
Scrap Metal: 2-3%