Environmental Sustainability

Climate change affects the world as a whole, which indirectly affects the corporate management strategy and brings operational impacts. Under the current rising awareness of environmental protection in Taiwan, in order to mitigate greenhouse gas issues arising from the development of the industry, it must comply with the relevant laws and regulations on greenhouse gas reduction, and promote various greenhouse gas emission reduction programs to fulfill corporate social responsibility.

The importance of Billion's energy policy lies in its ability to create economic benefits while also protecting the environment and complying with relevant regulations and standards. An effective energy policy can help organizations lower energy costs, enhance energy efficiency, reduce carbon emissions, and address climate change. As a testament to our commitment to sustainability, we are actively enhancing energy efficiency and embracing renewable energy sources. This planned effort aligns perfectly with our goal of becoming a global leader in green energy manufacturing.


Billion verifies ISO 14001 (ISO 14001 certificate number: TW07/01136 validity: 2024/08/31~2027/08/31) through third-party verification every year to ensure that the company has indeed implemented the ISO 14001 environmental management system and has completed the ISO 10464-1 greenhouse gas verification in the first quarter of 2024. Billion energy consumption in 2023 is shown in the table below, with a decrease of 119.58GJ in energy consumption and a decrease in energy intensity of 1.19GJ/turnover (million yuan) compared with 2022, indicating that the company is committed to energy conservation and carbon reduction policies, and the implementation effect is good.

Energy Resource Management

The energy consumption of Billion in 2023 is shown in the table below. Compared to 2021, the energy consumption is reduced by 330.06 GJ, and the energy intensity is reduced by 1.91 GJ/turnover (million NTD).
Quantitative Indicators Unit 2021 2022 2023
Electricity Consumption degree/year 575,000 456,852 466,936.6
GJ 2,070.00 1,644.67 1,680.97
Gasoline Consumption L / year 14,943.7 17,860.8 13,086.3
GJ 487.69 582.89 427.07
Diesel Consumption L / year 0 2 0
GJ 0 0.07 0
Organization-specific Quantity Operating Income Revenue Revenue Revenue
Organization-Specific Measures NT$ million 576 880 1,574
Total Energy Consumption GJ 2,557.69 2,227.63 2,108.05
Energy Intensity GJ / million yuan 4.44 2.53 1.34

Description:

1. Electricity heat value conversion: 1 kWh = 0.0036 GJ.

2. Conversion factors are calculated based on the fuel heat values in the EPA's Greenhouse Gas Emission Factor Management Table 6.0.4, with gasoline at 7,800 kcal/L; diesel at 8,400 kcal/L; natural gas at 8,000 kcal/m3; 1 kcal = 4.184 KJ.

3. The revenue figures for the organization-specific metric in 2021 and 2022 only include Billion, Billion Watts, and Billion Sunpower.

4. The revenue figure for the organization-specific metric in 2023 only includes Billion (headquarters, Yilan plant, Hsinchu laboratory), Billion Watts, Billion Energy Storage, Billion Power System, and VGwatt Energy.

5. Energy data includes Billion (headquarters, Yilan plant, Hsinchu laboratory), Billion Watts, Billion Energy Storage, VGwatt Energy, and Billion Power System.

Energy-Saving Results

Every year, Billion is committed to energy conservation

and carbon reduction policies, reviewing and exploring areas

for improvement in various locations. In addition to continuing

to promote more aspects of energy-saving measures, such as:

promoting turning off lights when not in use, remote control

of air conditioners to form smart air conditioning, purchasing

and using circulating fans to avoid setting air conditioning

temperatures too low, replacing fluorescent lamps with LED

lights when fixtures malfunction, and using electronic forms

and approval processes to reduce paper usage. In 2023, the

headquarters replaced 85 LED panel lights, which compared

to traditional lightweight steel frame lighting fixtures, can save

about 12,410 kWh of electricity for 2,000 hours of use, reducing

carbon emissions by about 6,143 kg, equivalent to planting 512

trees.

Due to the intermittent and unstable nature of renewable

energy, nighttime peak power usage across Taiwan has become

more severe, increasing the difficulty of system dispatch.

Therefore, Billion Group cooperates with the government's

green energy policy and actively invests in the renewable energy

industry, establishing energy storage sites throughout Taiwan.

This can effectively utilize idle land or rooftops, increasing the

proportion of green electricity generation in Taiwan. In 2023, 8

energy storage sites were built, which respond immediately to

changes in grid frequency, mitigating grid fluctuations. Storing

excess renewable energy in energy storage equipment can

improve the utilization rate and stability of renewable energy,

reduce potential power shortages during Taipower's peak usage

periods, fill power gaps, maintain stable power supply, and

achieve the goal of promoting the green energy industry.

Greenhouse Gas Emission Management

Greenhouse gases are the main cause of global warming, so Billion actively responds and conducts greenhouse gas inventories. The greenhouse gas emissions in 2023 can be divided into direct emissions and indirect emissions. Direct emission sources are gasoline and diesel use, and indirect emission sources are electricity use. Scope 3 emissions were added in 2023. There are no ozonedepleting substances or other significant gas emissions. Billion will continue to strive for improvement and implement environmental sustainability goals. Detailed total emissions are as follows:

Items 2021 2022 2023
Scope 1:Direct greenhouse gas emissions (tons CO2e) 35.25 42.14 68.96
Scope 2:Indirect greenhouse gas emissions (tons CO2e) 292.68 232.54 312.77
Scope 3:Other Indirect greenhouse gas emissions (tons CO2e) - - 262.14
Total emissions =Scope 1 + Scope 2 + Scope 3 (tons CO2e) 327.93 274.68 643.87
Greenhouse Gas Emission Intensity 0.57 0.31 0.41

Note:

1. Emission factors are calculated according to the latest data (version 6.0.4) announced by the Bureau of Energy, Ministry of Economic Affairs (IPCC Sixth Assessment Report).

2. Purchased electricity emissions use the electricity emission factor announced by the Bureau of Energy, Ministry of Economic Affairs. The 2021 electricity emission factor = 0.509 kgCO2e/kWh; the 2022 electricity emission factor = 0.495 kgCO2e/kWh.

3. Greenhouse gas emission intensity = Total emissions (tons CO2e) / Revenue (million NTD)

4. Greenhouse gas inventory data includes Billion (headquarters, Yilan plant, Hsinchu laboratory), Billion Watts, Billion Energy Storage, VGwatt Energy, and Billion Power System.

5. Only the 2023 greenhouse gas emissions have been verified by a third party.

Greenhouse Gas Reduction Targets

For the time being, 2022 will be used as the base year to set a carbon reduction pathway, with a target of 25% reduction by 2030, 50% by 2040, and 90% reduction by 2050 compared with the base year.

Specific Action Plan for Carbon Emission Reduction

  • Reduce the leakage rate of the air compressor system and reduce the set pressure value, with the goal of saving 6,216 kWh of electricity per year from 2025 to 2050.
  • Lighting equipment (replacement of luminaires), with a target of 2023 to 2050, is expected to save 29,715 kWh of electricity per year.
  • The lighting fixtures (luminaire reduction) target is 2023 to 2050, which is estimated to save 2,250 kWh of electricity per year.


According to the above action plan, Billion will improve and replace public equipment in stages, and then effectively reduce the company's carbon emissions through the purchase of green electricity to achieve the 2050 net-zero target.

Waste Management

In the process of operation, Shengda manufactures packaging materials (including waste cartons and waste plastics) of raw materials from upstream suppliers and defective products returned by downstream customers that cannot be repaired, and the waste generated in other manufacturing processes is classified as general business waste, mainly from waste plastics, waste tin slag and waste paper; The other is hazardous business waste, which mainly consists of waste electronic components, scraps and defective products, metal-containing printed circuit board scrap and its chips, and waste printed circuit boards with components. The third-party removal and transportation companies entrusted by the company comply with the Waste Disposal Act and relevant regulations, and there is no spillage and leakage, and there is a GPS positioning system to reduce the damage to the environment and ecology. The employees' domestic garbage is disposed of by the management center of the rented building, and the employees' domestic garbage of the Yilan plant is purchased from the special garbage bags of Longde Industrial Zone, and the garbage is collected every week, and then placed at the gate, and the cleaning and treatment company is hired by the industrial zone to deal with it on behalf of the company. It mainly comes from business employees' household waste, waste plastic mixture, waste paper containers, scrap iron, scrap aluminum, and waste. Shengda is committed to protecting the environment, the waste produced is classified, and the specific actions of circular economy or waste reduction are actively taken, and 2 suppliers will recycle packaging bags and Module crispy trays for reuse in 2023. ISO 14001 system was introduced for waste management. In 2023, the Yilan plant will produce no waste other than people's livelihood waste


2024 Waste Reduction Target:

Reduce the use of plastic bags for packaging on the top and bottom of the product as industrial waste, reuse >3% of cushioning materials for sample or RMA packaging, and recycle 70% from > suppliers in Taiwan.

The List of Hazardous Waste Generated by The Company in 2023

Hazardous Waste
Waste Composition Off-site
Items Hazardous/ Nonhazardous Waste Treatment (tons) Treatment Method
Metal-containing printed circuit board waste and its powder Hazardous 0.64 Other disposal operations
Waste electronic components, defective products, and substandard products Hazardous 0.11 Other disposal operations
Waste printed circuit boards with attached components Hazardous 6.36 Other disposal operations
Total 7.11 -

The List of Hazardous Waste Generated by Billion in 2022

Hazardous Waste
Composition of Waste Disposal Disposal
Items Waste Generation (tons) Processing Method
Lead and Its Compounds (Waste Tin Slag) 0.02 Reuse Processing Operation
Waste Electronic Components Scraps and Defective Products 0.02 Physical Processing
Metal-containing PCB Waste 0.04 Physical Processing
Waste Printed Circuit Board with Components 0.39 Physical Processing
Total 0.47 --

Billion Group Non-Hazardous Waste Generation and Treatment in 2023

Non-hazardous Waste
Waste Composition Off-site
Item Waste Generated (tons) Treatment Method
Plastic waste 0.15 Other recovery operations
Tin Waste 0.02 Recycling
Waste paper 5.18 Other recovery operations
General household waste 19.78 Incineration
Total 25.13 -

The List of Non-hazardous Wastes Generated by The Head office in 2022

Non-hazardous Waste
Composition of Waste Disposal Disposal
Items Waste Generation (tons) Processing Method
Waste Plastic 0.28 Recycling and Reuse Operation
Waste Paper 7.7 Recycling and Reuse Operation
General Domestic Waste 27. 1 Disposed of by The Management Center
Total 7.98

Billion Group's general waste is disposed of by the management center of the rented building, so it cannot be quantified and monitored. The general domestic waste estimate is based on the average daily garbage removal and transportation volume of 0.633 kg per person in New Taipei City in 2022, the total working day is 250 days, and the number of employees is 171 (excluding the Yilan plant). 

Waste Management Targets


2023~2025 Goals:

  • According to the law, the completion rate of the output, storage, removal, treatment, reuse, output and input of waste shall be 100% on the Internet every month.
  • 100% compliance rate of legal removal and transportation of industrial waste.
  • 100% of the suppliers of empty chemical barrels are recycled, refilled and reused.
  • Follow the car and visit from time to time to confirm that the removal and disposal of industrial waste meets 100% of the requirements of laws and regulations.

2026~2031 Goals:

  • Actively promote waste reduction and resource recycling.
  • The proportion of waste recycling and reuse increases by 1% every year.

Water Resources Management

In order to maximize water efficiency, Billion strengthens the literacy of all employees to cherish water resources and implement water-saving results through daily advocacy and implementation of water head shut-off, the use of water-saving appliances, and daily actions.

The main source of water used by Billion and Yilan plant is domestic water, the water source is tap water, and there is no use of groundwater, Billion is jointly treated by the building, and the main source is the Jade Reservoir, while the Yilan plant is Xinchengxi. It has no significant impact on the water source and ecological environment near the company and the factory, and is not significant, and the water quality of wastewater discharge is tested every six months, and the test results are in line with the discharge standards of the competent authority.

Billion is a low-to-medium risk area for water resources, and the water withdrawal of Yilan plant in 2023 was 0.11 million liters, with a water intensity of 0.00006. Detailed water usage data is shown in the following table:

Water Consumption of Billion Yilan Plant
Year 2022 2023
Water Withdrawal (million litres) 0.13 0.11
Displacement (million litres) 0.10 0.09
Water Consumption (million liters) 0.03 0.02
Organization-specific Measure (million dollars) Revenues Revenues
Organization-specific Measure 1,211.418 1,828.751
The Water Density 0.0009 0.00006

Note:

1. Water Consumption = Water Intake - Discharge Volume.

2. Water intensity is calculated as water withdrawal (million litres) / revenue (million).

  • Board and management oversight and governance of climate-related risks and opportunities

    Billion holds regular board meetings, and the Sustainability Committee reports to the Board of Directors on a quarterly basis on the status of ESG implementation and the achievement of greenhouse gas inventory targets in accordance with the regulations of the Financial Supervisory Committee. The Sustainability Committee has six groups: corporate governance, environmental protection, social responsibility, risk management, information security and integrity management. Members of each group form an executive group responsible for promoting related matters.

  • How the identified climate risks and opportunities impact the company's business, strategy and finances (short-term, medium-term, long-term)

    The Sustainability Committee discusses and identifies climate risks and opportunities that have an impact on the company at the beginning of each year, and scores them with external experts based on likelihood of occurrence and financial impact to screen out major transition climate risks, physical climate risks and Transformative climate opportunities. The risk interval is defined as



    Short term: 1-3 years

    Medium term: 4-10 years

    Long term: more than 10 years


    The impact of relevant risks and opportunities on the company is explained as follows:


    • Policy and regulatory risks (energy tax-related regulations): The Climate Change Response Law is about to impose a carbon fee of 300 yuan per metric ton and the Renewable Energy Law requires that the installation of renewable energy must reach more than 10% of the contracted capacity, resulting in an increase in operating costs.


    • Market risk (change in customer behavior): In order to enhance the company's image and goodwill, customers increase their demand for low-carbon products (providing product carbon footprint verification), resulting in the risk of being taken out of orders, which in turn affects market share, resulting in a decline in revenue or operations. Increased costs.


    • Risk of technological transformation (products and technologies are challenged by low-carbon technologies): The market has higher requirements for product energy-saving technologies, or the company is unable to develop low-carbon products, resulting in increased product development costs or operating costs.

  • The financial impact of extreme climate events and transition actions

    Acute physical risks (the impact of extreme weather) can easily cause short-term water or power shortages, resulting in increased maintenance costs or operational interruptions, thereby increasing operating costs, reducing revenue and asset losses.


    In recent years, the company has actively deployed solar energy, energy storage, charging piles and other businesses, with the goal of diversifying operations and promoting business transformation. Related corporate subsidiaries Shengqi, Jinhao and Shengyi Energy cooperate with government policies and regulations and are committed to environmental renewable energy Develop and provide comprehensive green energy solution services. As of 2023Q3, green energy business revenue has accounted for more than 70% of the group's consolidated revenue, which will effectively increase the group's revenue in the future.

  • How to integrate climate risk identification, assessment and management processes into the overall risk management system

    The Sustainability Committee has established six working groups with cross-department heads to identify and assess climate risks and opportunities every 2-3 years, and review annually whether adjustments need to be made based on the actual operating environment. Normal risk control is carried out by each business unit in accordance with internal control procedures, and each working group regularly reports the implementation progress and results to the Sustainability Development Committee.

  • Use scenario analysis to assess resilience to climate change risks. The scenarios, parameters, assumptions, analysis factors and main financial impacts used should be explained.

    In 2023, we will introduce a greenhouse gas inventory and a third-party (SGS) will complete the verification in 2024. After the GHG inventory is completed, the relevant scenario analysis and financial impact assessment will be conducted.

  • A transformation plan to manage climate-related risks, describing the content of the plan, and the indicators and targets used to identify and manage physical and transition risks

    After completing the greenhouse gas inventory and the baseline survey of energy equipment, we will formulate specific risk transition response plans and control indicators. At present, the relevant energy management measures that have been promoted are explained below


    1. Reduce the leakage rate of the air compressor system and reduce the set pressure value

    2. Lighting equipment (replacement of lamps)

    3. Lighting equipment (reduction of unnecessary luminaires)

    4. In response to the government's policy goal of "2050 net zero emissions" and expanding renewable energy, the Company's participation in the construction of Taipower's AFC energy storage system will help improve the utilization rate of renewable energy, and the Company's new investment in self-owned on-site energy storage equipment in 2023 will be RMB84,498 thousand, with a total capacity of approximately 3MW of new energy storage batteries, helping Taipower to improve its power generation and energy system resilience.

  • Internal carbon pricing as a basis for pricing planning tools

    Billion counseling in 2024, and it is expected that after completion, it will gradually promote the internal carbon pricing system as a reference for carbon reduction cost assessment.

  • Climate-related goals should describe the activities covered, scope of greenhouse gas emissions, planning period, and annual achievement progress.

    After Billion completes its greenhouse gas inventory in 2023, it will set specific climate goals and whether to use carbon offsets or purchase renewable energy certificates (RECs) in the future.

Renewable Energy

Corporate Social Responsibility (CSR) has become the common mission of the global business community since the early 21st century. In recent years, the trend of ESG (environmental, social, and corporate governance) investment has gained momentum, calling on major corporations and the general public to invest in enterprises that fulfill ESG responsibilities to achieve the vision of global sustainable management.

The COVID-19 pandemic has exacerbated poverty worldwide, with a severe food crisis affecting an estimated 150 million people and one-third of the global population facing water scarcity. Various extremes and inequalities around the world have made it clear that embracing a sustainable future poses many challenges.

"Talking about climate change is a risk, but a low-carbon economy is an opportunity". As long as there is a change in perspective, investing in CSR and ESG can be seen not as  a cost but as an opportunity. Billion continues to adhere to its longstanding philosophy of commitment to the development of renewable energy for environmental sustainability.

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