Environmental and Resource Management

Environmental Management System

To stay close to the broader and macro environmental trends, CTCI has taken into account multi-faceted environmental aspects within its business objectives by introducing the ISO 14001:2015 Environmental Management System. To facilitate its effectiveness and help us identify risks comprehensively, we take an integrated approach by combining it with the ISO 45001:2018 Occupational Health and Safety Management System into one HSE management system. This scope of HSE system spans across engineering, procurement, construction and commissioning, as well as any controllable and affected activities, products, and service at the construction sites; in other words, those that cover 100% of our revenue scope. Moreover, the system has been validated by a third-party validation company. To ensure the effectiveness of our environmental management system, not only do we carry out regular and nonregular internal auditing, we also invite third-party validators to conduct external audits on the CTCI headquarters and randomly-selected construction sites. In addition, CTCI follows the ISO 14001 Environmental Management System to conduct the compliance obligation of environmental protection-related laws and regulations, including the air, water,
poison, waste, and other related regulations. Over the past five years, CTCI has no record of heavy fines for major environmental pollution.

Our environmental policy is in accordance with the management system, and has been integrated with occupational safety and health policy statement into the HSE policy statement. We engage in thorough communication and consultation with external stakeholders―including public associations, certification unities, experts and scholars, partners, and government agencies, throughout the policy development process. We also require our contractors to comply with these policies, aiming to leverage our influence to advance sustainable development together with our value chain partners. In 2025, in response to international sustainability trends, we have strengthened our environmental initiatives. We are committed to improving energy efficiency and reducing greenhouse gas
emissions. Furthermore, we have established dedicated policies for waste and water resource governance to comprehensively prevent pollution and strive for the elimination of hazardous substances in wastewater. Through supply chain incentive mechanisms, we encourage our contractors to implement energy-saving and waste-reduction measures, collectively creating green engineering projects that balance economic and environmental goals.
 

Energy

energy consumption during the construction processes. These comprise CTCI's main sources of greenhouse gas emissions.

In 2025, the total non-renewable electricity consumption of the headquarters building and the construction sites combined was 6,205,846 kWh, while total consumption of gasoline and diesel combined was 2,260,056 liters. The total energy consumption of the headquarters building and the construction sites reached 1.15x108 MJ. The EUI value of the headquarters was 107.5 kWh /m2 and the site energy intensity was 3,433,209 kWh/million man-hours. The green power utilization rate of the headquarters has been increasing year by year, from 2% in 2022 to 78% in 2025. The combined energy consumption in the headquarters and construction sites dropped by 2.4% in 2024 compared to 2022. Moreover, we continuously monitor various energy consumption levels and energy audit, compiling performance statistics annually, and reports the results to the chairman. The aim is to analyze the energy efficiency of operations by observing the changes and trends over the years. We then use the results to formulate and implement relevant policies, and use them as reference when setting carbon emissions reduction and energy-saving targets in the future. That way, we can gradually fulfill the vision of low-carbon development. In 2025, the headquarters building of CTCI passed ISO 50001 energy management certification. We continued to monitor the energy utilization efficiency of the headquarters building and announce our energy policy on the Group's official website.
 

In 2024, the headquarters building will implement relevant energy-saving measures for air-conditioning, lighting, sockets and elevators, and regularly review the performance. CTCI University provides energy-related courses to enhance employees' training in energy-saving measures and energy management. Company announcements are made from time to time to train the staff to develop energy-saving habits, establish an energy-saving corporate culture, and always regard energy conservation and carbon reduction as a major focus of daily work.

In 2025, the headquarters building passed ISO 50001 certification. Energy-saving targets and dedicated projects were established to achieve the energy-saving effect. Besides, through quarterly monitoring of energy baselines, the Company managed to strengthen its energy utilization rate; also, relevant regulations must be complied with during the procurement of major energy equipment. Energy management review meeting was held at the yearend to review the achievement rate of targets and projects as well as continuous improvement measures.

Major energy conservation measures at global construction sites in 2025 include installing solar panels, small wind power generation fans, temperature and time control in air-con, adding green features to buildings, natural lighting, and using home appliances that have eco and energy-saving labels.

In 2025, a Sustainable Net-Zero Task Force mechanism was established at each construction site. The task force consists of the project manager, site project manager, HSE (Health, Safety, and Environment) manager, site administration and general affairs manager, site controls manager, and relevant construction supervisors. The Group is responsible for initiating and reviewing energy-saving measures and their implementation. ESG training sessions are also held regularly at the sites to enable autonomous management of sustainability-related issues and ensure compliance with oversight from relevant Taipei authorities.
 

CTCI also places emphasis on the energy use of its suppliers. Tier 1 suppliers are requested to complete sustainability risk survey questionnaires, which include energy management-related questions. Suppliers are required to record and manage their energy consumption and pursue annual energy reduction targets. For suppliers identified as high-risk, the Procurement Department conducts on-site audits to assess improvements in audited areas and provides recommendations for further enhancement.
 

Green energy equipment or green energy industry investment and benefits

CTCI is actively involved in expanding intothe green energy industry. In 2023, the solar panel installation at the first headquarters cost approximately NTD$4,990 thousand with the expected annual power generation of 71MWh (71 renewable energy certificates) in 2025. In the field of renewable energy, 3,547MWh (3,547 renewable energy certificates) was consumed in 2025, cosing approximately NTD$18,626 thousand and reducing 1,681 ton CO2e.
 

Raw Materials

CTCI assesses eco-friendliness during the selection of materials. The procurement of eco-friendly materials can reduce resource consumption and pollution. We support suppliers who carry out environmental management themselves and encourage the development and production of ecofriendly materials. In terms of choice of building materials, CTCI considers durability, maintainability, VOCs, hazardous substances, and radiation hazards. Furthermore, by adopting the newly introduced Engineering Economic Analysis (EEA) life cycle cost analysis software, energy consumption calculations are integrated with life cycle costing to ensure that each analysis cycle takes into account a lifespan of over 20 years.

In line with its commitment to not using tropical rainforest wood, virgin forest wood, or genetically modified trees, CTCI has incorporated a requirement into its design specifications to prioritize the use of Forest Stewardship Council-certified wood. In managing the consumption of forest resources in the office, the Company continues to promote the priority use of electronic operations to reduce excessive paper printing. When printing is necessary, the employees' computers have been preset to double-sided printing mode to minimize paper consumption.
 

Reward Subcontractors that Conserve Building Materials

CTCI encourages its subcontractors that work at construction sites to brainstorm measures to conserve and reuse building materials. They will be required to provide proof of their actual implementation results during the project period. After evaluation by the site review committee, subcontractors who have achieved significant results will be given bonus. This initiative aims to encourage subcontractors to utilize conservation building materials and reduce waste. This measure applies to all subcontractors involved in CTCI's global construction projects.
 

Green Procurement

For many years, CTCI has been promoting green procurement. In 2025, we reported NT$432 million in green procurement to the Environmental Protection Administration, which mostly cover IT products such as laptops, servers, and desktops in our offices. When purchasing office supplies such as photocopy paper and toner cartridges, we give priority to products with green labels. We also encourage our employees to travel by high-speed rail instead of cars in business trips. In 2025, machinery with "Self-Management Mark for Clean Emissions of Construction Machinery" and equipment for "Air Pollution Prevention, Noise Control, and Wastewater Treatment" were added to the declaration of green procurement.
 

Water

In terms of the use of water resources, the water for the headquarters building and global construction sites is directly supplied by public tap water, and there is no additional water taken from other water bodies. All wastewater is discharged to the sewerage. The water consumption of the headquarters building is lower than the target in 2025. To demonstrate more active determination in water resource management, we have further enhanced our ambition for water conservation targets: With the year 2018 as the base year, we have set a goal to reduce the water consumption intensity of our headquarters building and site construction process by 4% by 2030, thereby continuously improving the water resource utilization efficiency.
 

Many automatic sensor faucets will be in place to reduce the consumption of water resources, and water will be saved by controlling the water output and water output time. Many water-saving signs are also in place to remind colleagues to save water. Both the top floor of the building and the work sites are equipped with rainwater recycling systems, which can be used for irrigation of open space vegetation or for construction. The headquarters building will implement environmentally friendly foaming hand soap throughout the entire building, effectively reducing water consumption and also serving as one of the green procurement initiatives.

The Company has set domestic water use at its headquarters as part of its efficiency improvement targets and has established measures to reduce water consumption and promote greywater reuse during the construction process. Water recycling and savings have been quantified, including the reuse of sedimentation tank recovered water, storage and reuse of water from tank leakage testing, and recovery of hydrostatic test water. The water intensity in the base year 2018 was 13.6 m³ per million revenue, while in 2025 it decreased to 2.8 m³ per million revenue. Overall water intensity has been reduced by 79.1% compared to the base year
 

Construction sites have installed water meters and started using water-saving devices, such as water-efficient faucets, toilets, sprinkler timers, and rain sensors. Water meters are installed at each project site in accordance with regulatory requirements or operational needs to enable monitoring of water consumption.
 

Air Pollution

CTCI takes into account the relevant provisions of the Air Pollution Control Act during the design phase. Before commencement of construction work, our on-site personnel need to go through trainings on the requirements of the Air Pollution Control Act. They need to be fully aware that the air pollutants emitted must meet standards. In the case of inevitable polluting operations within the legal boundaries, such as temporary emissions during construction or commissioning, which may affect the quality of life of neighboring communities and impact the environment,The Company would always notify the residents in advance on the time and details of emissions to avoid misunderstanding and panic. No open burning, materials transportation, or other operations that would produce granular pollutants detrimental to human health and natural ecology are allowed at construction sites.

As an international EPC firm, CTCI operates under different industrial characteristics compared to the manufacturing sector. Air pollutant emissions from construction sites are categorized as fugitive sources. The air pollution fee is calculated using a one-time estimation formula: Construction Area (m²) x Construction Period (months) x Unit Rate by Project Level.

In contrast, manufacturing plants involve stationary sources, such as chimneys, which are regulated via permit identification numbers and monitored by Continuous Emissions Monitoring Systems (CEMS) to obtain actual discharge data. Consequently, unlike manufacturing facilities, CTCI is unable to disclose air pollutant emission data based on real-time spatial or temporal variations.
 

Soil and Groundwater

Before construction work begins, CTCI prepares water usage and wastewater management plans. Construction water is supplied by the municipal water system. Given the relatively low level of water consumption, the impact from any temporary suspension of water supply is considered minimal.During the construction phase, strict environmental monitoring is implemented to control the quality of effluents discharged from construction sites. No waste materials or pollutants are discharged into water bodies or within the designated buffer zones around water bodies. For the storage of major materials as required by authorities, CTCI installs protective facilities to prevent groundwater contamination, supported by continuous monitoring and recordkeeping. In the event of accidental or emergency wastewater discharge that may pose a serious risk to drinking water safety or the environment, emergency response measures are activated and the local environmental authorities are notified within three hours.

Different types of wastewaters are appropriately managed. Domestic wastewater is discharged into nearby industrial or municipal sewage systems, septic tanks, or handled by licensed waste treatment contractors for collection, transportation, and treatment. During construction, sedimentation tanks are installed at appropriate locations. Non-hazardous and non-contaminated wastewater is collected, allowed to settle, and then reused to reduce freshwater consumption.

CTCI is not a major water consumer. In the identification, assessment, and management of water resource risks, the focus is placed on two key factors: water quality and water quantity. Future water availability is evaluated through simulations based on historical water usage data from the Water Resources Agency. The results indicate that water supply at all operational sites is expected to remain stable over the next three years, with no significant changes anticipated.To further assess water quality trends, historical monitoring data from the Ministry of Environment show a declining non-compliance rate, indicating continuous improvement in water quality over time. In addition to water quantity and quality, potential water-use conflicts with stakeholders within shared watersheds, as well as stakeholder concerns, are incorporated into the risk assessment framework. Relevant local regulatory requirements on water management are also taken into account.
 

Waste

The general waste disposal method for the headquarters building is incineration, with a generation volume of 54.98 metric tons in 2025. The general waste disposal methods for global construction sites include incineration and landfill, with an incineration volume of 3,872.65 metric tons and a landfill volume of 0 metric tons in 2025. The waste disposal volume for CTCI in 2025 is below the established target value, achieving zero landfill waste in 2025.

To demonstrate more active determination in waste reduction, we have further elevated our target ambition: With the year 2018 as the base year, we promote to achieve the goal of reducing waste intensity by 4% by 2030, and implement the goal in more than 50% of projects, thereby continuously carrying out reduction from the source and resource cycling.

To continuously and effectively reduce waste, the headquarters building is implementing waste volume control on each floor. Paper, paper containers, metal, plastic, and food waste are all recycled.In response to the increased use of paper containers and cups, in addition to the headquarters building implementing paper container recycling. The coffee bar on the second floor promotes the use of reusable cups to reduce the waste generated from coffee purchases by employees. Additionally, umbrella drying stands and shared umbrellas have been purchased and installed to reduce the use of umbrella covers.
 

 
CTCI's design and construction principles aim to minimize waste generation on the construction sites, and the Company has established comprehensive reduction, reuse or recycling targets for all projects to strengthen management and avoid waste. Additionally, projects are sorted by contract value, and the top 50% projects in terms of coverage are selected to set intensity targets for regular tracking and control. The general domestic waste generated by all operation sites and project construction sites can be combined with general waste for clearing or disposal. The waste is classified and collected first, stored using proper containers respectively, and then entrusted to a city or town-level cleaning unit for disposal. The waste density was 84.5kg/million NTD in revenue in the base year of 2018, while that was 74.6kg/million NTD in revenue in 2025. In 2025, the construction site waste recovery rate was increased to 49.5%.

The Company encourage using reusable construction equipment, as well as renting or purchasing second-hand equipment instead of buying new ones. In addition, the construction information modeling technology is applied to the stage of engineering development to improve the quality of engineering design, provide accurate drawings, labors, and materials, and extend the application to construction management to avoid the waste of building materials.

CTCI requires its staff and contractors to go through waste management sessions in new recruit onboard training and HSE training before entering project sites. Such matters are also further communicated during kick-off meetings and hazard identification meetings. Staff is required to strictly follow the waste management practices and classification of construction site waste. Contractors with excellent environmental protection performance are rewarded. CTCI also hold site safety and environment cleanliness competitions.

The Company has established relevant regulations, penalty provisions and reward clause in the contracts with cooperative suppliers, requiring them to effectively implement construction site environment cleaning and waste recycling and reutilization (including: the suppliers shall be responsible for clearing or returning all residual materials and leftover materials generated during the construction period to a place designated by CTCI for storage, and other relevant basic requirements). CTCI will impose penalties to violators. Statistics indicated that CTCI imposed a total of 8 penalties on cooperative suppliers who failed to properly conduct waste management on our project construction sites, with a penalty amount of NT$53,000. If a supplier provides a certificate of waste recycling and reutilization, and the outcome is appraised as significant at relevant construction site review committee meeting, a bonus will be provided to this supplier. The provision above applies to all cooperative suppliers that generate waste within CTCI's global construction sites.
 

Noise

In consideration of the health and safety of the operators and the construction quality, CTCI prioritizes the use of low-noise machinery, equipment, vehicles, and appliances. If it is expected that the noise pollution caused by construction may bring public protests, we would pay special attention to prevent pollution and public protest. Complaints are not limited to personal visits or in written forms; we consider all opinions and grievances regarding pollution and related matters voiced in any form, at any opportunity, on any occasion. All complaints are handled in the most efficient manner possible. A response regarding the official treatment plan and outcomes will be given to the person(s) filing the complaints.
 

Biodiversity

The primary operational base of CTCI is the headquarters building and global construction sites, which are located in areas that do not involve protected biological habitats or regions of high biodiversity that hold significant ecological value for indigenous peoples and local communities. The Company emphasizes ecological environment, cultivates suitable vegetation, promotes greening, and mitigates environmental impact. In the execution of various engineering projects, equal importance is placed on the ecological protection of the project site, encompassing ecological assessment and monitoring activities at all stages, including design and construction. All ecological data collection, investigation, and analysis are conducted by qualified ecological personnel. They assist in integrating the concept of ecological conservation into engineering design, propose specific ecological protection measures, and ensure their implementation in the project. Before construction begins at global sites, we conduct ecological surveys and environmental impact assessments, fully considering local species, habitats, and ecosystems during the project design phase. Conservation strategies that include avoidance, minimization, mitigation, and compensation for environmental impacts are then implemented. CTCI's ”Biodiversity and Zero Deforestation Policy Commitments” was adopted by the Board of Directors.
　

Policy Commitment Download PDF Policy Commitments

∷ Biodiversity and Zero Deforestation PolicyCommitments

● Provide products or services that comply with Zero Deforestation standards and our operational sites and value chain activities should avoid biodiversity hotspots regulated
by national or international regulations.
● For existing operational sites that encompass biodiversity hotspots, we commit to implementing strategies of avoidance, mitigation, restoration, and compensation to reduce the impact on those areas.
● Regularly monitor the ecological environment surrounding operational sites and assess their impact.
● Implement biodiversity risk identification, including our own operation sites, adjacent areas to our own operations, upstream, and downstream activities.
● Support biodiversity conservation activities or initiatives.
● Engage with upstream and downstream value chains and stakeholders to achieve the aforementioned commitments.
 

∷ Ecological/Environmental Conservation Strategy and Planning

CTCI establishes a dedicated unit, the Sustainability and Net Zero Office, in collaboration with the ESG and Net Zero Committee, to jointly promote sustainability-related matters across departments. The unit operates under the supervision of the Sustainability Superintendent. The Sustainability Superintendent and the Chief Sustainability Officer regularly report the outcomes of nature conservation and biodiversity protection to the Sustainability and Information Security Committee established under the Board of Directors.

CTCI has set targets for biodiversity conservation. By 2030, our operational sites aim to achieve No Net Loss (NNL) and adhere to No Gross Deforestation standards. By 2050, our operational sites strive to achieve Net Positive Impact (NPI), while our value chain aims for No Net Loss and compliance with No Gross Deforestation standards.
 

∷ Nature-related Financial Disclosures

In response to the global emphasis and evolving trends regarding biodiversity, CTCI has initiated the preliminary adoption of the Taskforce on Nature-Related Financial Disclosures (TNFD) framework. Through the application of the LEAP methodology (Locate, Evaluate, Assess, and Prepare), we assess nature-related risks and opportunities to enhance our disclosure on financial aspects related to nature. The process planning instructions are as follows. For detailed results, please refer to the "CTCI Climate and Nature-related Financial Disclosure Report".
 

Identification and response of nature-related dependency to business operations

In the process of analyzing our dependence on nature and ecosystem services, we conducted questionnaire surveys and held group discussions in workshops. The results of the questionnaire matrix analysis showed that there are two high-exposure issues in the Company's own operations: high temperature and degraded air quality; Other six potential high-risk issues facing CTCI include shortage of fossil fuel supply, occurrence of floods, shortage of water resources, shortage of non-biological materials (non-metallic) supply, uneven rainfall, and deterioration of water quality. Among them, "water resources shortage" and "fossil fuel shortage" are two issues that are reckoned hard to address even after adjustment by employees. The Company will return to its own operation management, and establish dependent indicators and measuring units for risk management and tracking high risk issues.
 

Identification and response of nature-related impact to business operations

CTCI conducted a matrix analysis for the impact materiality that is similar to the dependency materiality assessment. The results showed that greenhouse gas emissions, indirect energy use, and waste are the top three high-exposure impact issues, while highrisk impact issues include the use of mineral resources, new land development, proximity to sensitive biodiversity areas, use of genetically related materials, changes to the freshwater system, and introduction of exotic species, soil pollution, and wastewater. After advanced discussion by the working group, it was concluded that since the use of mineral resources, new land development, proximity to sensitive biodiversity areas, use of genetically related materials, alteration of the freshwater system, and introduction of exotic species are all indirectly related to CTCI's operation, they are temporarily excluded from subsequent management actions. For high-risk impact issues, the Company establishes management indicators, management measures, as well as targets for risk management and tracking. The higher-risk site activities of CTCI are project construction sites (downstream of the value chain). In addition to developing management plans based on environmental impact assessments, projects are required to report their strategies and measures to the business unit head quarterly.
 

Nature conservation measures

All of CTCI's sites have completed biodiversity analysis. Within a 2-km radius of the construction site, there are projects that impact on wildlife protection areas and wetlands, measures have been taken to address the terrestrial and marine ecological environments. Prior to project implementation, an Environmental Impact Assessment (EIA) report is obtained to develop a management plan. The following table illustrates the potential impacts during the construction and operation phases, as well as the corresponding mitigation strategies. In addition, all personnel are required to undergo environmental education training on air pollution prevention, water pollution control, waste sorting and treatment, and other relevant topics before entering the construction site. During gatherings or meetings, relevant provisions of ecological conservation laws and the necessary actions for ecological protection are explained to the participants. Furthermore, re-education measures are implemented for individuals or contractors found to be in violation of regulations.
 

Natural Carbon Sink

CTCI incorporates Nature-based Solutions (NbS) into the execution of engineering projects. Tree planting is implemented not only for landscape improvement but also to support biodiversity enhancement and increase natural carbon sequestration. According to the local environment where projects are constructed (e.g., high salinity in coastal areas and urban heat islands), we select native tree species with high survival rates and strong carbon sequestration capacity, and design multilayered planting structure (covering large and small arbors, shrubs and ground cover plants). Compared to single lawn greening, they can provide higher carbon sinks and simultaneously respond to the policy direction of "Forest 1-1: Afforestation on National, Public and Private Lands to Expand Forest Coverage and Carbon Sink Volume" in "Key Strategic Action Plan for Natural Carbon Sinks in Taiwan Net-Zero Transition by 2050". For the species of native landscape plants, plants with ecological significance and functions such as host plants and nectar sources for butterflies are considered. The planting is conducted in principles of right plants for right places and multilayered arrangement to create habitats and expand spaces for biological utilization and foraging. If calculated according to the design code for greening design of building bases, the greening vegetation of engineering projects in 2025 achieved annual carbon sequestration of 4.726 tCO2e.
 
 

Supply Chain Engagement

Vendors are important stakeholders for CTCI, and in the "Vendor's Commitments to Corporate Sustainable Management and Net Zero" issued by CTCI, vendors are required to commit to assessing and disclosing their dependence on and impacts on local and global biodiversity. They are expected to refrain from deforestation and gradually reduce negative impacts while enhancing positive ones. While reducing biodiversity-related risks, vendors should fully adhere to sustainable development principles in their mining, production, procurement, supply chain, utilization, and disposal processes. Together with CTCI, vednors are expectedto contribute to nature conservation efforts.
 
 

External initiatives and partners

To strengthen its influence on natural ecology and environmental protection, CTCI not only takes actions internally but also collaborates with external initiatives and partners, including various non-governmental organizations. Through these partnerships, CTCI actively invites its employees and their families to participate in initiatives aimed at raising public awareness and understanding of the value and importance of biodiversity conservation, and promote the mainstreaming of biodiversity.
 

Wetland Conservation for Enhanced Wetland Functions

The "Nature Vitality with Green Water" project aims to safeguard biodiversity and water resources. With respect to operation sites, the Company safeguards wetlands with different actions based on its volunteers and local partners. This initiative responds to the policy of "Ocean 1-3: Strengthening Wetlands' Natural Carbon Sink Function Based on Wetland Management" in "Key Strategic Action Plan for Natural Carbon Sinks in Taiwan Net-Zero Transition by 2050".