中租控股

Sustainability

An Environment and Energy Promotion Committee was established, so that the introduction of environmental protection concepts into daily work routines can be planned and carried out systematically, to raise awareness of saving energy, to reduce carbon emissions, to continue promoting behavior that saves energy, and to formulate a plan to cut waste.

In 2014, the ISO 14001 Environment Management System was implemented in the Taiwan headquarters building in Taiwan. In 2016, the ISO: 50001 Energy Management System was implemented in the Taiwan headquarters building. It’s been verified by the British Standards Institute and continues to improve in accordance with the management system by the planned and systematic PDCA management model. In 2022, ISO 14001 and ISO 50001 environmental and energy management systems were implement in all important subsidiaries. In 2023, ISO 46001 water efficiency management systems were implement. All of them have been certified by the British Standards Institution.

Using average power use in 2015 as a benchmark and office personnel power consumption in Taiwan as the energy efficiency index, energy savings will improve 20% until 2020. By comprehensively updating lighting equipment, we reached our goal earlier than planned. The current target is to reduce electricity consumption by 2%, water consumption by 3%, and waste by 2% each year compared to the base year of 2020, and to reduce photocopying paper usage by 5%. Promote reduction each year to achieve real improvement in benefits. In 2020, ISO 14064-1 Greenhouse Gas Emissions was implement in the headquarters building to actively control and reduce carbon emissions generated by enterprises. In 2023, the ISO 14064-1 GHG inventory expanded to expand 100% of Taiwan and China.

Environment and Energy Promotion Committee

Carbon Emission

Chailease Holding has long conformed to government greenhouse gas reduction targets. By keeping an organization-wide GHG inventory, we can not only track our carbon emissions, but also formulate a GHG emissions reduction plan. Moreover, we plan to set Science Based Targets (SBT) and will submit the SBTi commitment in 2024. The emission base year is expected to be 2023, and the GHG emissions in Scopes 1, 2 and 3 will be reduced by 42% by 2030. The financial carbon target setting is expected to incorporate fossil fuels (listed and SMEs) and all other sectors (listed companies), with a carbon reduction range of 67% of the loan amount, with 95% of the loan amount for fossil fuels.

Carbon emission (ton)	2020	2021	2022	2023
Scope 1	3,905.67	7,646.34	4,737.62	4,469.48
Scope 2(Location-based)	5,388.17	5,670.93	6,511.44	7,467.53
Scope 2(market-based)	5,388.17	5,670.93	6,511.44	7,056.15
Scope 1+ Scope 2	9,293.84	13,317.28	11,249.05	11,937.01
Carbon emission per unit of revenue (ton/NT$M)	0.16	0.18	0.13	0.12
Per capita (ton/person)	1.31	1.71	1.25	1.21
Data Coverage Rate	100%	100%	100%	100%
Scope 3
Investing and Financing		1,145,707	6,430,298.56	7,077,055.78
Data Coverage Rate		32.21%	74.6%	72.8%
Business travels	185.32	127.96	164.69	819.46
Waste transportation and incineration	81.30	92.89	78.06	156.67
Purchased Goods and Services _Copier paper	122.11	115.66	115.38	2,006.33
Fuel and Energy Related Activities _Electricity upstream	738.47	594.98	543.40	798.55
Fuel and Energy Related Activities _Gasoline upstream	147.44	142.05	120.86	102.11
Data Coverage Rate	50.2%	50.3%	53.1%	85.9%

Notes:

The table is calculated by self and ISO 14064-1 verified by the third party. The scope of the verification is all the Taiwan and China office. Inventory gas includes CO₂, CH₄, N₂O, HFCs, PFCs, SF₆ and NF₃. Certificate documents attached behind
Scope 1 primarily covers emissions from company car gasoline use. The calculation is based on the EPA GHG Emission Factor Table (version 6.0.4) and totals 2.263 liters of CO₂e / liter of gasoline. Others (fixed, process, fugitive) are verified by a third party to be emission-free.
Scope 2 emissions primarily comprise electricity use. Calculations are based on the Bureau of Energy’s electric power emissions factors and total the following for each year: 0.509(2019), 0.502(2020), 0.509(2021), 0.509(2022), 0.495(2023) liters of CO₂e / kWh.
Scope 3 of business travel, waste transportation and incineration and photocopying paper covers Taiwan, with mainland China added from 2023. In addition, the electricity upstream and gasoline upstream range from Taiwan.
Scope 3 covers emissions resulting from employee business travel on airplanes and high-speed rail, disposal of solid and liquid waste, photocopying paper, electricity upstream and gasoline upstream emissions. Airplane emissions calculations are based on the ICAO website’s Carbon Emissions Calculator (http://www.icao.int/environmental-protection/CarbonOffset/Pages/default.aspx). High speed rail calculations are based on emissions of 34 grams of CO₂e per person per kilometer (passenger-kilometer). Upstream emissions are based on Carbon Footprint Calculation Platform of ITRI (https://cfp-calculate.tw/cfpc/WebPage/LoginPage.aspx)
The GWP value used is based on the IPCC Fourth Assessment Report.
The GHG inventory utilizes the operational control model to aggregate data.
No biodiesel is used as energy source.

The fire extinguishers in the Taiwan headquarters building are all 10P-ABC dry powder fire extinguishers, and the sea dragon fire extinguishers containing chlorides and bromides that will affect the earth's ozone layer are not used. The main unit of the air conditioner used on the floor adopts the type of refrigerant R22; the water dispenser adopts R134a and R600a environmentally friendly refrigerants.

Environmental Protection Efforts in Taiwan

Waste and Wastewater

To reduce the volume of waste the Taiwan headquarters has installed recycling collection areas on all floors, including collection of paper, plastic, aluminum and other metals. After simple sorting by employees, the building property management personnel undertake more specific sorting and handling, and finally a recycling company takes the items. In 2023, a total of 140.2 tons of waste and garbage in Taiwan, of which 45.3 tons are recycled and 94.9 tons are not recycled (including kitchen waste), the total carbon emission of unrecycled waste incineration disposal is 32.3 tons/CO2. Each subsidiary overseas has its waste similarly handled by a local property management company. Beginning in 2014 the Taiwan headquarters began recycling of leftover food from prepared meals. Employees perform a simple sorting operation after which a livestock feeding company handles the remains. A cleanup company processes ordinary garbage through incineration.

The headquarters water source is within the Taipei Waterworks. It does not have any groundwater or other source of water supply, and water at the building is only for employee use. The household wastewater thus produced is discharged into sanitary sewers. Overseas, Chailease subsidiaries discharge wastewater into underground wastewater conduits and thence into rivers and the ocean. There is no significant impact on water sources.

Energy and Water Management

According to the energy and resource usage statistics of each operating site of the company, the total water withdrawal in 2023 is 45,725 liters(45.7 megaliters) in Taiwan, and the total electricity consumption of the company is 7,194,107 MWh (25,898,785 MJ) in Taiwan. In 2023, the per capita electricity consumption in Taiwan will be reduced by 3.5% and the per capita water consumption will be reduced by 2.2% compared with the previous year (due to office space, the water discharge is negligible). The company continues to implement various energy-saving and carbon-reduction measures and promotions to enhance employees' awareness of environmental protection and reduce per capita consumption.

The use of internal operational energy will be reduced before setting a gradual increase in the ratio of renewable energy use every year. In 2023, Company Headquarters in Neihu already switched to supplying 83kWh (2,988 GJ) of green electricity, and will gradually increase this amount annually in hopes of using 100% green electricity across Taiwan by 2030.

For overseas subsidiaries of Chailease Holdings, the total water withdrawal from water stress areas (medium-high to high) was 40,479 kWh (40.479 million liters). Please refer to the environmental sustainability related data in the Appendix.

Internal Carbon Pricing

In response to the global net-zero trend, the company initially set a goal of reducing the total electricity consumption of the headquarters building by 20% by 2020, with 2015 as the base year. The target was achieved ahead of schedule due to the complete replacement of energy-saving lighting fixtures and other equipment. With a view to implementing the spirit of continuous improvement, promoting the concept of environmental protection, and raising the awareness of energy savings and carbon reduction, the target setting has been changed to take 2020 as the base year and promote the reduction program year by year, so that enterprises can start to take practical measures to reduce carbon emissions internally.

In line with the principle of “the user pays”, each department is charged a fee based on the greenhouse gas emissions of its energy consumption. The current price is approximately NT$9,307 per ton of CO₂e. By charging a fee, each department is encouraged to take action to reduce carbon emissions and the related fees are also used to promote internal carbon reduction efforts, including the establishment of a carbon fund, the organization of environmental activities, and the purchase of energy-saving equipment and green power.

In 2024, we will further follow the spirit of internal carbon pricing policy and adopt the shadow price approach when taking investment and financing business into consideration. The carbon fee will be set at NT$600/ton CO2e. For investments and financing cases targeting high-carbon emission industries, we will calculate the amount of carbon emissions of our credit clients based on capital investment ratio and attach the cost of additional carbon emissions to the business unit. Through internal carbon pricing and shadow pricing, the company promotes both internal and external carbon reduction efforts and encourages departments to take action to reduce carbon emissions. Related fees are also used as a source of carbon funds.

In accordance with the “Code of Practice on Corporate Social Responsibility” approved by the Board of Directors in 2011 and the “Operational Procedures and Behavior Guidelines for Integrity Management” in 2014, Chailease Holdings' supplier management policy explicitly stipulates the legality and integrity of supplier management policies and requires suppliers to follow relevant regulations on issues such as environmental protection, occupational safety and health, or labor human rights, and to avoid dealing with those in conflict with the CSR policy. If a supplier is involved in a policy violation that has a significant impact on the environment and society in the supply source community, we may terminate or cancel the contract at any time.

The “Supplier Social Responsibility Code” was established in 2014 to regulate suppliers to meet ethical standards, respect labor and human rights, and environmental sustainability. In 2015, a new “Supplier Code of Conduct” was established to include violations of integrity contracts. In 2021, the revised name was changed to “Supplier Corporate Social Responsibility Code.” In 2022, rename “Supplier Human Rights and Environmental Sustainability Clause and Integrity Commitment” which added Integrity Commitment Clause. in the hope that suppliers will work together to achieve the goals of good ethical standards, respect for labor and human rights, and environmental sustainability, and the content of the code includes labor, environment, safety and health, anti-corruption & anti-bribery, ethics and management standards for sustainable development. The main types of suppliers are consulting services, interior design services, information technology services and energy technology services. In 2023, all suppliers which transaction amounts exceeding NT$1 million in Taiwan have been sign the code.

Implementation Measures

Holding communication meetings: Holding periodic communication meetings with suppliers to promote CSR policies.
Education and training promotion: Provide education and training to assist suppliers in building CSR management capabilities.
Targeted suppliers: Suppliers with whom the Company's cumulative transaction amount reaches NT$1 million or more in the current year and who sign the “Supplier Human Rights and Environmental Sustainability Clause and Integrity Commitment”.

Implementation

Revised the “CSR Code for Suppliers”.
Produced supplier education and training handouts and invited suppliers to participate in online courses.
Chailease Holdings and its subsidiary suppliers signed the “Supplier Human Rights and Environmental Sustainability Clause and Integrity Commitment”, with a 100% completion rate.
Sent out ESG self-assessment questionnaires to 86 suppliers, with a 100% completion rate. (There are 27 new suppliers in 2023, and 100% of them will be screened by environmental and social standards)

Evaluation Results

In order to promote suppliers' implementation of CSR, we will launch an online training course for suppliers and require suppliers with an accumulated transaction amount of NT$1 million or more to complete an ESG self-assessment questionnaire. At the end of the year, we conducted an inventory of suppliers for Chailease Holdings and its subsidiaries. 86 of them met the requirements.

Evaluated Items

The average score of the ESG self-assessment survey was 68.32. Based on the performance of suppliers, those who did not achieve 50 points were analyzed for scale and industry attributes, and further subdivided into standard conditions for subsequent evaluation of counseling and improvement, and cooperation will be terminated if significant negative impacts are identified. At present, none of our suppliers are engaged in child labor, major labor cases, or major environmental impacts.

Chailease Energy-Promoting the positive cycle of solar photovoltaic supply chain

In order to drive the positive cycle of the solar power industry and the supply chain, and to bring into play the sustainable impact of the responsible supply chain, Chailease Energy, a subsidiary of Chailease Holdings, requires its suppliers to fulfill their corporate social responsibility, to provide a safe working environment, to value human rights in labor relations, to comply with ethical operation, and to promote environmental protection.

In early 2022, we also revised our supplier and partner selection criteria, institutionalized the promotion and evaluation of supplier and partner qualifications, and included environmental management, social commitment and Company operations with reference to the positive ESG list items. The written review is combined with on-site evaluation, scoring and evaluation to select suitable suppliers and partners as the priority reference for cooperation selection. We also require suppliers to sign a commitment letter and conduct occasional visits to track the continuous improvement in order to improve the performance of supply chain management and move forward together towards the goal of sustainable development.

We invest in sustainability management, including polysilicon and silicon crystals in upstream industries; solar cells and modules in midstream industries; and suppliers and construction materials and equipment in downstream industries, including system construction EPC (Engineering, Procurement, and Construction) manufacturers, aluminum brackets, steel structures, electrical and mechanical panel manufacturers, monitoring manufacturers, and other peripheral related industries.

Following an ESG project evaluation for the 107 new partners added this year, the average score was 43.6. Further analysis of their performance found that each company is operating legally and in compliance with the law. There are no companies with significant negative impacts that need to be terminated. However, due to the fact that most of the companies are small and medium-sized enterprises, factors such as operational performance meant minimal investment in environmental management policies and minimal performance in areas like sustainable work practices. As such, Chailease Holdings plans to share corporate resources in the future to help enhance the ESG awareness of its partners and improve their related performance.

Sustainable Procurement Principles

In accordance with the green procurement policy promoted by the Environmental Protection Agency (the products with green labels and energy-saving labels, the certification fees for environmental and energy management systems) and with reference to the spirit of ISO 20400 sustainable procurement guidelines, the concept of sustainability management is incorporated into the procurement policy and procurement practices, requiring partner companies to participate in following green procurement guidelines and designing or producing products that meet green specifications in order to fulfill their corporate responsibilities and expand their influence. In 2023, we will select 100% of local manufacturers as our partners for all procurement cases.

In the “Supplier's Commitment to Human Rights and Environmental Sustainability”, suppliers are explicitly required to evaluate the environmental and social impacts of their procurement practices on the regions from which they supply, and to use relevant materials or services in a manner that protects the natural environment and safeguards the interests of local residents.

Use or procure energy-saving equipment and implement energy-saving measures as far as possible, and give priority to the use of recycled and reused alternative materials in the production of products or the provision of services in compliance with product quality requirements, in order to reduce the negative impact on the environment and society, and to avoid the use of substances that are harmful to the environment and local residents.

Reduce the emission of pollutants, toxic substances and waste, and properly dispose of waste in accordance with relevant laws and regulations to reduce the impact and harm to the environment.

In the supplier selection and management regulations, the raw material procurement policy encourages local procurement, procurement of energy-saving labeled products, and the adoption of friendly processes or the use of environmentally friendly materials and equipment.

Purchase Amounts

Chailease Holdings' headquarters in Neihu is promoting energy equipment improvement and green commodity procurement. We will continue to expand our scope and projects in the future.

Safety and Health Education Training and Counseling for Contractors

In 2023, there were total of 51 sessions of safety and health education training and counseling for the contractors of the headquarters building of the company with 342 people, and the completion rate of safety and health education and training is 100%. There were a total of 415 safety and health education training and counseling sessions for Chailease Holding’s Solar Energy’s contractors. The total number of workers trained by our general contractors was 2,860, and the rate of safety and health education training rate was 95.6%.