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.


The results of Billion's 2022 inspection of both waste and greenhouse gases are improved compared with 2021, and the company will verify ISO 14001 (ISO 14001 certificate number: TW07/01136 validity period: 2021/08/31~2024/08/31) through third-party verification every year to ensure that the company has implemented the ISO 14001 environmental management system, and is expected to complete the ISO 10464-1 greenhouse gas verification in the first quarter of 2024.

Energy Resource Management

The energy consumption of Billion in 2022 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 2020 2021 2022
Electricity Consumption degree/year 591,416 575,000 456,852
GJ 2,129.10 2,070.00 1,644.67
Gasoline Consumption L / year 11,662.3 14,943.7 17,860.8
GJ 380.60 487.69 582.89
Diesel Consumption L / year 0 0 2
GJ 0 0 0.07
Organization-specific Quantity Operating Income Revenue Revenue Revenue
Organization-Specific Measures NT$ million 392 576 880
Total Energy Consumption GJ 2,509.70 2,557.69 2,227.63
Energy Intensity GJ / million yuan 6.40 4.44 2.53

Note:

  1. The electricity calorific value is converted into 1 kWh = 0.0036 GJ.
  2. The source of the conversion factor is calculated based on the calorific value of fuel in Version 6.0.4 of the Gas Emission Factor Management Table of the Environmental Protection Administration. Gasoline conversion is 7,800 kcal/L; diesel, 8,400 kcal/L; natural gas, 8,000 kcal/m3; 1 kcal = 4.184 KJ.
  3. The organization-specific sales value only includes Billion, Billion Watts, and Billion SunPower.
  4. Although the electricity consumption statistics of the Yilan Plant increased in 2022, the factory's manufacturing electricity usage decreased compared to 2021 due to disruptions in the telecom market caused by COVID-19 shipping issues. 

Energy-Saving Results

2022 LED Flat Lamp Replacement Statistics

(Comparison of LED panel lights and traditional light steel frame lights for 2,000 hours of electricity consumption)

Color Temperature Power consumption Quantity Energy Savings Estimate Carbon Reduction Estimate
6000K 40W 15 Savings of approximately 1,740 kilowatt-hours (6,264 million joules) Carbon reduction of approximately 0.9 metric tons of CO2e per kWh
5700K 25W 20 Savings of approximately 2,920 kilowatt-hours (6,984 million joules) Carbon reduction of approximately 1.486 metric tons of CO2e per kWh
5700K 25W 3 Savings of approximately 438 kilowatt-hours (1,576.8 million joules) Carbon reduction of approximately 0.222 metric tons of CO2e per kWh
Total Savings of approximately 5,098 kilowatt-hours (18,352.8 million joules) Carbon reduction of approximately 2.595 metric tons of CO2e per kWh

Note:

  1. The electricity carbon emission coefficient is estimated at 0.509kg CO2e/kWH in 2022.
  2. Source of conversion factors: 1 kWh is equivalent to 3,600,000 joules, as announced by the Energy Bureau of the Ministry of Economic Affairs.
  3. Energy saving is mainly in Scope 2.
  4. The estimation is based on approximately 2,000 working hours per year.
  5. LED FPD
  • Dimensions: 600mm long * width 600mm * high 30mm
  • Input voltage: AC 100 ~ 240V full voltage
  • Luminous Flux: 4,000lm


Greenhouse Gas Emission Management

Greenhouse gases are the primary contributors to global warming. As a result, Billion actively addresses and conducts a greenhouse gas inventory. The greenhouse gas emissions for 2022 can be categorized into direct emissions and indirect emissions. Direct emissions stem from the use of gasoline and diesel, while indirect emissions result from electricity consumption. This report does not include Scope 3 emissions, substances that deplete the ozone layer, or other significant gas emissions. The company will continue to strive for improvement and the implementation of environmental sustainability goals. The detailed emission totals are as follows:

Items 2020 2021 2022
Scope 1: Direct GHG emissions (tons CO2e) 27.51 35.25 42.14
Scope 2: Indirect greenhouse gas emissions (tons CO2e) 296.89 292.68 232.54
Total emissions = Scope 1 + Scope 2 (tons CO2e) 324.40 327.93 274.68
Intensity of GHG Emission 0.83 0.57 0.31

Note:

1. The emission factors are calculated based on the latest released data, version 6.0.4, from the Energy Bureau of the Ministry of Economic Affairs (IPCC 6th Assessment Report).

2. For purchased electricity, the electricity emission coefficient announced by the Bureau of Energy, Ministry of Economic Affairs, is used. The electricity emission coefficient in 2020 was 0.502 kg CO2e/kWh. Electricity emission coefficient in 2021 and 2022 = 0.509 kg CO2e/kWh 

3. GHG emission intensity = total emissions (tons CO2e)/revenue (million NTD)

Greenhouse Gas Reduction Targets

Temporarily take 2022 as the base year, set a carbon reduction pathway, and target a 30% reduction in 2030, a 70% reduction in 2040, and a 100% reduction in 2050, so as to achieve net zero across the board.

Specific Action Plan for Carbon Emission Reduction

  • Establish an energy management system with a target of 2024-2050 and an estimated annual electricity saving of 22,842 kWh.
  • 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 2024 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.
  • Lighting equipment  (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 Billion's operational production processes, the packaging of raw materials from upstream suppliers, including cartons and plastic waste, along with scrapped products resulting from defective items returned by downstream customers that cannot be repaired, are classified as general business waste, which consists mainly of waste plastics, waste tin slag and waste paper. The other type is hazardous business waste, which mainly includes waste electronic components such as scraps and defective products, metal-containing PCB waste and its residues, and component-containing PCB waste. The management of industrial waste is entrusted to Class A-qualified waste disposal and transportation companies, while recycling and reuse is carried out by third-party organizations. All of the third-party waste disposal and transportation companies commissioned by Billion comply with the "Waste Disposal Act" and relevant regulations, with no incidents of spillage or leakage. They are also equipped with a GPS positioning tracking system to minimize environmental impact.

The domestic waste of employees is uniformly disposed of by the management center of the leased building. At the Yilan Plant, employees use the designated garbage bags acquired in the Lungteh Industrial Park. These bags are collected weekly and placed at the gate to be processed by contracted cleaning companies. They mainly come from business employees' daily waste, waste plastic mixture, waste paper containers, scrap iron, scrap aluminum, and waste. Hazardous waste accounts for a low proportion of the company's waste, has no significant impact, and is not significant. Billion is committed to protecting the environment, and all waste produced is classified, and actively takes specific actions to reduce waste in circular economy or waste, such as the waste reduction target in 2022, the packaging plastic bags used for the upper and lower cover parts of the product are reused as samples or RMA packaging buffer materials >5%, and the actual achievement status is >50%, which is greater than the original set target value, and the implementation is good. The target for 2023 will be increased to >15%.

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 --

The List of Hazardous Waste Generated by The Company in 2021

Hazardous Waste
Composition of waste On-site Disposal
Items Waste Generation (tons) Processing Method Waste Generation (tons) Processing Method
Waste Printed Circuit Boards with Components - - 0.0411 Other Processing Operation
Lead and Its Compounds (Total Lead) - - 0.0142 Other Processing Operation
Waste Electronic Components, Scraps and Defective Products - - 0.0301 Other Processing Operation
Scrap Printed Circuit Boards Containing Metal and Their Powders - - 0.0438 Other Processing Operation
Total - - 0.1292

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). 

The List of Non-hazardous Wastes Generated by The Head office in 2021

Non-hazardous Waste
Composition of Waste On-site Disposal
Items Waste Generation (tons) Processing Method Waste Generation (tons) Processing Method
Waste Paper - - 20.662 Other Recycling Operations
Waste Plastic - - 0.4131 Other Recycling Operations
Waste Plastic Mixtures 0.00112 - - Other Processing Operations
Total 0.00112 - 21.0751

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 intake of Yilan plant in 2022 is 0.13 million liters, and the water intensity is 0.0009. Details information below:

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

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.

    Billion plans to introduce greenhouse gas inventory in 2023 and have a third party (SGS) complete the verification work in 2024. Once the greenhouse gas inventory is completed, 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

    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


    Once the greenhouse gas inventory and baseline survey of energy equipment are completed, specific risk transformation response plans and management and control indicator targets will be formulated. At present, relevant energy management measures have been promoted as follows:


    1. Build energy management system
    2. Reduce the leakage rate of the air pressure system and lower the set pressure value
    3. Lighting equipment (replacement lamps)
    4. Lighting equipment (reduce unnecessary lamps)
    5. In response to the government's policy goals of "2050 Net Zero Emissions" and the expansion of renewable energy, our company participated in the construction of Taipower's AFC energy storage system to help improve the utilization rate of renewable energy. Based on the power generation information of Taipower's power units, we added energy storage power generation (Energy Storage). Discharge), the company's investment in new self-owned energy storage equipment in 2023 will be 84,498 thousand yuan, and the newly built energy storage battery capacity will be approximately 3MW, helping Taipower improve power generation and energy system resilience.

  • Internal carbon pricing as a basis for pricing planning tools

    Billion plans to introduce TCFD project guidance in 2024. 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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