TCC's Latest TNFD Report Highlights Reducing Energy and Natural Resource Use, Creating New Low-Carbon Value; Nature-Related Revenue Exceeds NT$40.5 Billion

TCC’s latest nature-related financial disclosures (TNFD) report revealed the first financial assessment of opportunities related to low-carbon and new energy transitions. In 2024, TCC collaborated with National Taiwan University's School of Forestry and Resource Conservation to conduct the LEAP (Locate, Evaluate, Assess, and Prepare) approach for the port, power plant, cement plant, and mines according to the official TNFD framework. TCC also adopted the cement sector-specific methodology, Methodology for the Net Impact Assessment of Biodiversity, launched by the World Business Council for Sustainable Development (WBCSD) and set 2040 as the timeline for TCC's net positive impact (NPI), making it the first enterprise in Taiwan to clearly define a nature positive path.

The TNFD framework not only examines potential natural risks but also quantifies long-term natural opportunities, including alternative raw materials, alternative fuels, alternative energy, water reclamation, and natural ecosystem conservation. Due to TCC’s low-carbon new energy transition plan, the company has gradually adopted new circular technologies, reduced the use of natural resources, enhanced renewable energy utilization, and increased the efficiency of water resource recycling. In 2023, these efforts generated over NT$40.5 billion in revenue from low-carbon products and services, accounting for 37% of the consolidated total revenue.

The financial assessment of nature-related opportunities is divided into four major categories. First, revenue from low-carbon products and services provided by alternative energy and resources has exceeded NT$40.5 billion. Second, cost savings have exceeded NT$2.7 billion due to reduced use of limestone and coal, self-generated solar energy, power generation from waste heat recovery, and increased use of reclaimed water. Third, pro-forma revenue from carbon trading and reduced carbon fee costs due to relative carbon reduction from alternative energy and resources has exceeded NT$500 million. Fourth, positive ecosystem impact value, including beneficial impacts on ecosystems and humans, such as reduced CO₂e emissions, new medicinal benefits provided by the Dr. Cecilia Koo Botanic Conservation Center (KBCC), and ecological service value from the rehabilitation of mines. The total internal and external carbon reduction benefits amount to 2.2 million tons of CO₂e. All financial information is consistent with the 2023 TCC Group Holdings Sustainability Report, the 2023 TCC Annual Report, and the IFRS Sustainability-related and Climate-related Financial Information section.

"Humans are a part of nature." Following the release of the TNFD pilot program report last August, TCC was invited to join the TNFD Early Adopters, which also includes over 100 financial and index, investment rating agencies, such as S&P Global, Moody’s, and MSCI Inc., managing over $14 trillion in assets. This indicates that nature-related issues have become a crucial indicator in the financial market.

In 2024, TCC published the official TNFD report. The report features a poetry by Chairman Nelson An-ping Chang - “Water wells in spring; clouds changes in summer; the moon lofts in autumn; mountains delight in winter,” using the beautiful changes in seasons as chapters of the report. The cover photo is of the Taiwan-native orchid - Bletilla formosana, which grows in TCC’s mine. With the collaborative efforts of the restoration team and KBCC, a delicate orchid has successfully bloomed on cliffs over a kilometer high. The remarkable achievement symbolizes the resilience of life, mirroring the industry's ongoing quest for suitable positions and new values amidst adversity.

Starting with the cement industry, sourcing raw materials from nature, and deeply connected to it, TCC has now expanded into 11 industries. Upholding the "nature-based business philosophy," TCC gradually implements the goal of harmonious coexistence between industry and nature.