Energy and greenhouse gases
Taiwan Photomask Group has maintained close communication with stakeholders and discovered their concern about energy and greenhouse gas issues, hoping to understand Taiwan Photomask's management and actions on these issues. Taiwan Photomask Group hopes to promote energy conservation and carbon reduction plans, emphasize pollution prevention, safeguard the quality of life for all, mitigate the environmental impact of its operations, and create economic and social value.
Manage and Respond
- Taiwan Mask Group actively responds to and participates in global energy conservation and carbon reduction initiatives. When planning new factory construction, it adopted Diamond-level green building standards and implemented various energy-saving and carbon-reduction measures (such as switching to energy-efficient lighting, strengthening air conditioning management, improving air compressor efficiency, upgrading UF membranes, and updating energy-efficient equipment) to reduce energy consumption and carbon emissions. Furthermore, Taiwan Mask Group promotes electronic processes to reduce paper usage, and its employee cafeteria uses environmentally friendly tableware, encouraging employees to integrate energy conservation, carbon reduction, and environmental protection concepts into their work environment. In addition, since 2023, Taiwan Mask Group has been gradually including some of its subsidiaries in greenhouse gas inventory audits, and plans to include all subsidiaries in the audits by 2029. In the future, it plans to implement carbon footprint assessments for its main products and promote environmental policies to suppliers, contractors, and carriers, hoping everyone will work together to protect the environment.
- Taiwan Mask Group primarily relies on purchased electricity, accounting for approximately 99% of its total energy consumption. The remaining energy comes from diesel and gasoline, mainly used in generators, official vehicles, and high-precision machinery. In 2024, Taiwan mask continued to expand its production capacity by adding new equipment, resulting in a total energy consumption of 149,245.24 gigajoules (GJ) and an energy intensity of 0.00033 GJ/thousand NT dollars, a slight increase of 301.00 gigajoules (GJ) compared to 2023. In 2024, Taiwan Mask Group reduced its energy consumption due to increased production capacity through energy-saving measures such as air conditioning, adding inverters, and replacing LED tubes, while continuing to promote the concept of energy conservation.
- In response to the domestic and international trend of renewable energy, Taiwan Mask Group installed solar power generation equipment with a total area of 2,677.5 m2 at its Plants 1, 2 and 6 in Taiwan at the end of 2022. In 2024, it generated a total of 457,743.91 kWh of electricity and reduced CO2 emissions by 216.97 tonnes. In the future, it will continue to evaluate the feasibility of green energy power generation and hopes to gradually increase the proportion of renewable energy used.
- The Group actively establishes a greenhouse gas monitoring mechanism, regularly monitoring greenhouse gas emissions from each plant. In 2024, the total greenhouse gas emissions of Taiwan Mask Group in Categories I and II amounted to 19,743.73 tonCO2e. Indirect energy emissions from electricity use (Category II) accounted for 99% of the company's total emissions, while the remaining direct emissions (Category I) included: generator diesel, process cylinders, gasoline and diesel for official vehicles, septic tanks, and refrigerant-related equipment, accounting for 1%. In 2024, due to the commissioning of new equipment, the Group's greenhouse gas emission intensity was 0.000044 tonCO2e/thousand NT dollars, an increase of 50% compared to the previous year. Taiwan Mask Group will continue to formulate and implement strategies to reduce energy consumption. Note: Revenue in 2023 was NT$671,199,705,000, and revenue in 2024 was NT$453,838,491,000.
- Committed to improving energy efficiency and planning the use of renewable energy, the company aims to reduce greenhouse gas emissions from its operations. Through central monitoring, it continuously tracks the energy consumption of each system, adjusting parameters, installing energy-saving inverters, and replacing outdated equipment to reduce its reliance on externally purchased electricity and its associated environmental impact, while supporting the company's continued growth. The main reduction measures for 2024 consisted of two main categories: installing and replacing equipment with energy-saving devices, and completing the upgrade of factory lighting, resulting in total annual energy savings of approximately 112,954 GJ and greenhouse gas emission reductions of approximately 301.14 tonCO2e. Furthermore, in 2023, Taiwan Mask Group built an ecological landscape garden of over 1,000 square meters at its Zhunan plant, providing a comfortable and elegant green environment for employees to relax in. This initiative absorbs approximately 2.75 metric tons of carbon annually, enriching the ecology of the technology park and demonstrating the company's emphasis on employee rest, relaxation, and healthy living.
Air pollution control
The main sources of waste gas for Taiwan Mask Group are the chemicals used in the manufacturing process and the waste gas emitted by transportation vehicles. In order to ensure that the waste gas generated by the equipment used in the factory and the product manufacturing process complies with the current environmental protection regulations after treatment, strict waste gas emission monitoring is carried out.
Manage and Respond
- ■ Process Exhaust Gas Control: For exhaust gases generated from the use of chemicals in process operations, a closed exhaust gas collection system is used to direct the exhaust gases from each operation to air pollution control equipment. After treatment, the gases are released into the atmosphere. A qualified environmental testing agency is commissioned annually to sample and test the emission outlets of the air pollution control equipment. Regular testing of volatile organic compounds (VOCs) ensures compliance with permit requirements. ■ Transportation Vehicle Exhaust Gas Control: Exhaust gases emitted from transportation vehicles are regularly maintained and tested by a qualified testing agency to ensure that emissions comply with regulations and the emission standards of the science park. Note 1: Miracle Technology Co., Ltd. and Xsense Technology Corp, INC. are not listed as air pollution control products by the Ministry of Environmental Protection.
- Regular maintenance of the scrubbing tower, including replacing Raschig rings and nozzles, ensures treatment efficiency, improves equipment stability, and guarantees that exhaust emissions meet regulatory requirements. The system is also connected to monitor key parameters in real time, and regular testing results show that the concentrations of all pollutants are well below regulatory limits. Furthermore, improvements to the scrubbing tower's aging piping and dampers enhance the stability of the air pollution control system, resulting in emissions and removal efficiency meeting environmental regulations for the past two years.
- All of Taiwan Mask Group's operating sites emit no ozone-depleting substances (ODS), and in 2024, there were no incidents of exceeding emission standards or causing environmental or social harm. To reduce pollutant emissions, Taiwan Mask Corporation will replace aging fans and control panels in its scrubbing towers, add fans and automatic trip switching functions, and install an RCO catalytic regeneration oxidation furnace system to treat VOCs, increasing treatment efficiency by 87% in 2024.
Water resource management
To improve water resource utilization efficiency and ensure proper use of water resources, Taiwan Mask Group actively promotes water conservation concepts to its employees. Monthly water usage is recorded in an "Annual Water Management Sheet" to facilitate monitoring of water usage in each factory area, timely detection of water supply equipment malfunctions, and rapid problem-solving to avoid unnecessary water waste and reduce operational water and land pollution. Taiwan Mask Group sources 100% of its water from third-party sources (tap water). Water is primarily used for production and employee living, with a total water intake of 347,280 tons in 2024. In 2024, due to the addition of many cleaning machines, water consumption increased by 96,696 tons compared to 2023, while wastewater discharge increased by 73,516 tons compared to 2023.
Manage and Respond
- By adopting the best and most feasible pollution prevention and control technologies, establishing water flow records for each wet scrubbing machine, and analyzing the wastewater quality of each wet scrubbing machine under different process conditions, we can help identify wastewater that can be recycled and reused. The recycled and reused wastewater is then treated and returned to the process or supplied to cooling towers and scrubbing towers to improve resource utilization efficiency and reduce the amount of tap water used for makeup.
- In terms of water resource risk management, Taiwan Mask Group uses the World Resources Institute (WRI) water risk assessment tool to evaluate the water resource pressure and water risk of each plant area. KEMET uses water from Baoshan Reservoir, while Milo and AgroScience use water from Yongheshan Reservoir. The assessment results show that all of them are classified as low to medium risk and are not listed as high-risk water resource areas, with no significant impact on water use.
- To mitigate potential water resource risks, Taiwan Mask Group actively upgrades its water recycling equipment to improve water reuse efficiency. Furthermore, it has developed a water shortage contingency plan, collaborating with government agencies to regulate water resources and achieve government-set water conservation targets. It also works with the Science Park Administration or the Water Resources Agency to coordinate water usage, ensuring stable operations even during dry seasons when water shortages occur.
- Continuously refining water-saving technologies to increase water conservation, the company is promoting condensate recovery projects and cleaning machine water recycling programs to increase water reuse opportunities and reduce water intake. The cleaning machine water recycling program is planned to be expanded in 2025, and the water recycling system will continue to be used. The company is also improving the operational efficiency of wastewater treatment facilities, aiming to achieve process water savings of 1,145 tons by 2024. In the future, Taiwan Mask Group will continue to promote water-saving projects and refine related recycling measures to reduce water consumption and environmental impact.
- Taiwan Mask Corporation employs a secondary protection system to prevent wastewater overflow and environmental pollution in the event of system malfunctions or tank damage. In addition to internal water quality testing, offline sampling and analysis are also outsourced to ensure strict monitoring of the aquatic environment. Currently, the plant collects process chemicals separately and treats wastewater according to its characteristics, improving the efficiency of dedicated wastewater treatment. The treated wastewater is then discharged into the Hsinchu Science Park Wastewater Treatment Plant. Taiwan Mask Group has established an environmental management system based on ISO 14001 for water resource management, monitoring water usage at each plant. Its effluent management not only exceeds regulatory standards but also continuously monitors effluent quality online. To ensure effluent quality, regular water quality testing is conducted every six months, including testing for biochemical oxygen demand (BOD), chemical oxygen demand (COD), pH, suspended solids (SS), CN-, Cr+6, Cd, Pb, Cu, Zn, Ni, Cr, Hg, As, water temperature, ammonia nitrogen, nitrate nitrogen, anionic surfactants, boron, and fluoride. Water quality test results for the past three years show that all levels are below legal standards. Note: Miracle Technology Co., Ltd. does not manufacture products in this area and therefore does not require water quality testing.
Waste management
Based on ISO 14001 standards, Taiwan Mask Group has proposed an environmental policy with four main focuses: energy conservation and waste reduction, pollution prevention, regulatory compliance, and continuous improvement. The company reviews its processes to continuously reduce waste generation and actively seeks opportunities for resource recycling.
Manage and Respond
- Taiwan Mask Group aims to reduce waste by implementing process reduction and resource recycling. Each department categorizes and collects recyclable general waste such as waste paper, plastic bags, empty beverage bottles and cans, lunch boxes, and kitchen waste, and entrusts them to qualified recycling plants for processing. Internal management conducts regular audits to ensure proper resource recycling. Hazardous waste generated during the manufacturing process, such as waste sulfuric acid and empty chemical containers, is classified and labeled, and placed in the waste storage area as required by law. It is then handed over to government-approved qualified waste collection and disposal agencies, and a "Three-Part Form for Industrial Waste Control and Delivery" is issued as required by law, allowing for accurate tracking of the quantity and destination of waste collected. To ensure the final destination of waste, Taiwan Photomask conducts annual on-site audits of its waste disposal plants to confirm waste treatment processes and plant operations, fulfilling its corporate social responsibility.
- To ensure the legal and safe disposal of waste, management requirements are implemented for waste disposal procedures to minimize environmental impact. In 2024, Taiwan Mask Group conducted annual on-site inspections of its general and hazardous industrial waste removal operations, and the inspection results consistently met legal requirements. The following is Taiwan Photomask Group's waste management process: 1. Qualification Assessment: Before contracting an external waste disposal company for waste removal, a qualification assessment is conducted to confirm that the disposal methods comply with the relevant requirements of the Waste Disposal Act, and a removal and disposal contract is signed with the company. 2. Annual Inspection and Record Keeping: Annual inspections and records are conducted to verify the operational status of the waste disposal company and ensure it fulfills its responsibilities for source management. 3. On-site Collection Operations: When conducting on-site collection operations, a waste collection manifest must be submitted to the Waste Control Center of the Environmental Protection Administration, Executive Yuan, and the GPS vehicle's trajectory must be tracked. 4. Completion and Provision of Proper Disposal Documentation: The disposal company must complete the disposal operation and provide proper disposal documentation within 30 days.
- All waste disposal is outsourced to qualified external treatment plants; no waste is processed in-house. Treatment methods include reuse, recycling, and incineration. In 2024, the total waste volume was 1,065.42 metric tons, of which 310.21 metric tons were non-hazardous waste and 755.21 metric tons were hazardous waste. Of this, 294.76 metric tons were incinerated, 751.99 metric tons were reused, and the remaining 18.67 metric tons were treated in other ways. Reuse accounted for 71% of the total waste volume in 2024, highlighting the effectiveness of Taiwan Mask Group's proactive collection and treatment of recyclable resources.
Climate change
Climate change is an issue that businesses cannot ignore today. Taiwan Mask Corporation is actively concerned about the risks and opportunities that climate change may bring. Based on the framework of the Task Force on Climate-related Financial Disclosures (TCFD), Taiwan Mask Corporation identifies climate risks and opportunities. Through four key elements—governance, strategy, risk management, and indicators and objectives—Taiwan Photonics manages and discloses its climate-related financial risks and opportunities, enabling early response and prevention, and thus reducing the impact of climate change on Taiwan Photonics.
Governance
Parent company of Taiwan Mask actively strengthens its governance mechanisms related to sustainable operation and environmental sustainability. It has established a Corporate Sustainability Management Committee, with the General Manager responsible for decision-making and management, and representatives from various departments participating to jointly plan, identify, and manage various sustainability issues, including climate change. The committee reports the latest progress to the General Manager quarterly and regularly reports implementation results to the Board of Directors, ensuring Taiwan mask Corporation continued focus on and effective implementation of sustainability management.
Strategy
By assessing the likelihood of climate-related issues occurring and their impact on the company, this study analyzes the positive and negative impacts of climate change on Taiwan Mask Corporation, identifying the transformation risks, entity risks, and opportunities faced by Parent company of Taiwan Mask Simultaneously, it defines the impact timeframes of significant risks and opportunities, including short-term (within 3 years), medium-term (3 to 5 years), and long-term (over 5 years).
Risk Management
We continuously monitor the latest news from domestic and international governments and the semiconductor industry, review changes in various risk and opportunity issues annually, and engage representatives from various departments in discussions on climate-related financial risks and opportunities. We propose responses and management measures for the major risks and opportunities facing Parent company of Taiwan Mask, and adjust management systems and measures based on the above. We also incorporate climate-related risks into future operational planning.
Indicators and Goals
In response to international trends and the national net-zero target, Taiwan Mask Group aims to achieve net-zero carbon emissions by 2050, making energy conservation and carbon reduction its primary management indicators: Taiwan Mask Corporation cumulative energy saving rate (based on 2015): Short-term target (2025): 1%; Long-term target (2030): 5% Xsense Technology Corp, INC. cumulative energy saving rate (based on 2023): Short-term target (2025): 0.8%; Long-term target (2030): 0.8% Taiwan Mask Corporation cumulative greenhouse gas emission reduction rate (based on 2023): Short-term target (2025): 25%; Medium-term target (2030): 30%; Long-term target (2040): 50%