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

• 

• 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

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.