Energy and Greenhouse Gas Management
Having been successively awarded the ISO 14001 Environmental Management Systems, ISO 45001 Occupational Health and Safety Management Systems, and ISO 50001 Energy Management Systems certifications since 1997, we continue to make improvements to our manufacturing processes, implement pollution control measures, reduce energy consumption, eliminate hazards, and minimize occupation accidents using the PDCA approach. Moreover, we control our impact on the environment using knowledge tools and technologies to achieve a balance between the environment, society, and the economy, as well as implement green and sustainable development to meet stakeholders' expectations. CSCC's management and implementation of environmental, safety, and energy systems are detailed as follows:
| Every week | Factory affairs meetings | The heads of manufacturing departments discuss environmental, safety, health, and energy issues and the progress of improvements made with the heads of various departments and first-line workers |
| Every week | Business management meetings | The President discusses environmental, safety, health, and energy issues with the heads of various departments and first-line workers, reviews the implementation outcomes, and adjusts the relevant approaches in a timely manner |
| Every quarter | Occupational Safety and Health Committee | |
| Every year | Environment, safety and health management system review meetings |
SDG
Performance highlights in 2022
- Included Category 3 greenhouse gas emissions in the scope of inventory in accordance with the ISO 14064:2018 greenhouse gas emissions standards and completed third-party verification
- Continued to implement the TCFD initiative
- Completed a carbon footprint inventory of 16 products
Significance to CSCC
We implement energy management, collect information on financial impact that can assist in decision-making and is forward-looking, and help stakeholders understand the risks and opportunities involved in our move towards energy conservation and carbon reduction and the transition to a low-carbon economy.
Goals
| Short-term goals (2023) |
Medium-term goals (2024～2027) |
Long-term goals (2028 and beyond) |
|---|---|---|
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Management strategies
Continue to refine energy conservation plans for our manufacturing departments by referencing the best available technologies from our international peers, complete the TCFD risk matrix, and introduce a climate governance system
Resources invested and implementation outcomes
Kindly refer to Annual ESG Plan and Implementation Outcomes in this Report for more details.
Energy Consumption
In the wake of climate change, coping with climate disasters has become a critical issue for business operations in recent years. After formulating our short-, medium-, and long-term ESG goals in 2021, we have not only established our greenhouse gas inventory plan and annual reduction targets and schedule in response to climate change and carbon neutrality, but also completed a carbon footprint inventory of our major products. The implementation progress is reported to the Board of Directors on a regular basis for tracking and evaluation.
In 2021, we rolled out the TCFD initiative and established a voluntary climate-related financial disclosure system to collect information on financial impact that can assist in decision-making and is forward-looking, so that our stakeholders can understand the risks and opportunities involved in our move towards energy conservation and carbon reduction and the transition to a low-carbon economy. We also completed a risk matrix assessment and introduced a climate governance system.
Our Coal Chemical Manufacturing Department and Carbon Chemical Manufacturing Department conduct an inventory of Categories 1 and 2 greenhouse gas emissions for the previous year on their own each year. Furthermore, Category 3 greenhouse gas emissions have been included in the scope of inventory according to the ISO 14064:2018 greenhouse gas emissions standards since 2021. A third-party verification body is commissioned to carry out verification of these inventories. CSCC's energy consumption situation for the last three years is detailed as follows:
CSCC's energy consumption situation for the last three years
| Item | 2020 | 2021 | 2022 | |
|---|---|---|---|---|
| CSCC Headquarters | Electricity (MWh) | 71 | 73 | 73 |
| Coal Chemical Manufacturing Department | Electricity (MWh) | 49,140 | 49,128 | 50,919 |
| Steam (ton) | 169,562 | 176,344 | 172,244 | |
| Coke oven gas (kilostere) | 2,473 | 662 | 0 | |
| Natural gas (kilostere) | 7,754 | 8,532 | 8,522 | |
| Diesel oil (kL) | 461 | 579 | 438 | |
| Total energy consumption (GJ) | 1,073,941 | 1,060,882 | 1,042,010 | |
| Total amount of products (ton) | 670,264 | 656,243 | 647,324 | |
| Energy intensity (GJ per ton of products) | 1.60 | 1.62 | 1.61 | |
| Carbon Chemical Manufacturing Department | Electricity (MWh) | 21,758 | 22,127 | 32,771 |
| Diesel oil (kL) | 7.25 | 7.25 | 9.20 | |
| Liquefied petroleum gas (kg) | 8,748 | 15,500 | 26,500 | |
| Total energy consumption (GJ) | 78,790 | 80,300 | 119,580 | |
| Total amount of products (ton) | 840 | 934 | 2,108 | |
| Energy intensity (GJ per ton of products) | 93.80 | 85.97 | 56.73 | |
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Note: The heating values used in the calculation of the items above are listed as follows: 1 MWh of electricity = 860 Mcal; 1 metric ton of steam = 710Mcal; 1 kilostere of coke oven gas = 4,197 Mcal; 1 kilostere of natural gas = 9,307 Mcal; 1 kL of diesel oil = 8,330 Mcal; and 1 kilogram of liquefied petroleum gas = 12Mcal. The energy usage is based on the calculation data provided by the external; procurement unit. |
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CSCC's production volume by product category in 2022 is as follows:(Unit: ton)
In 2022, we purchase 100% of its electricity, use 0% of renewable energy, and use 0% of self-generated energy.
We have established the Greenhouse Gas Inventory Management Procedures, which are intended for our greenhouse gas inventory system, in compliance with international greenhouse gas standards such as ISO 14064-1:2006 and domestic rules and regulations related to greenhouse gases such as the Guidelines for Greenhouse Gas Inventory and Registration promulgated by the Environmental Protection Administration, Executive Yuan. We complete our own greenhouse gas inventory on a regular basis each year. With the introduction of the 2018 edition of ISO 14064-1 and the inclusion of other sources of indirect emissions such as employee commuting and transportation in the scope of inventory, CSCC has conducted inventory and verification on a regular basis according to the latest edition of the standards since 2021. A third-party unit is also commissioned to carry out verification to ensure the validity of related data. The categories of greenhouse gases inventoried based on our activities, products, and services, as well as their scope of operations are listed as follows:
| Category | Corresponding activity/ Type of equipment | Source of emissions | |
|---|---|---|---|
| Scope 1 | Stationary combustion sources (i.e., stationary combustion of fuels at a facility) | Emergency power generators | Diesel |
| Gas boilers | Natural gas | ||
| Other reheating furnaces | Natural gas | ||
| Process emission sources (owned or controlled by the organization) | QA laboratory | Acetylene | |
| Mobile combustion sources (i.e., combustion of fuels in transportation modes owned and controlled by the organization, such as automobiles, trucks, trains, planes, and ships) | Engine-powered vehicles (company vehicles) | Gasoline and diesel | |
| Fugitive greenhouse gas emission sources (intentional and unintentional emissions) | Fugitive emissions from air conditioning systems (use, maintenance, and filling) | R410a/R404a/R134a/R22/R32 | |
| Company vehicles (use, maintenance, and filling) | R134a | ||
| Biogas from septic tanks (employee use) | CH4 | ||
| Maintenance and repair | WD-40 | ||
| Fire suppression systems (i.e., fire extinguishers and firefighting equipment) Dry powder (phosphate excluded) |
CO2 | ||
| Volatile organic compounds | CO2 | ||
| Scope 2 | Indirect emissions from input energy sources | Power supply from Taiwan Power Company (Taipower) | Electricity purchased from Taipower |
| Steam supply | Steam purchased from China Steel Corporation | ||
| Scope 3 | Indirect emissions from transportation | Emissions from the transportation of raw materials | Fuels |
| Emissions from the transportation and distribution of the organization's products | Fuels | ||
| Emissions from employee commuting | Fuels | ||
| Emissions from business travel | Fuels | ||
For the Coal Chemical Manufacturing Department, the base year for greenhouse gas inventory is 2018, i.e., the year when the greenhouse gas inventory was conducted, while emission factors from electricity generation and other emission factors are calculated based on the latest emission factors published by the Bureau of Energy and the Environmental Protection Administration. The scope of our greenhouse gas inventory for 2022 covered the Coal Chemical Manufacturing Department and our headquarters, where direct emissions (Category 1) and indirect emissions (Category 2) accounted for 24% and 76% of the total emissions, respectively. Categories 1 and 2 greenhouse gas emissions at the Coal Chemical Manufacturing Department for the base year and the last three years are detailed as follows:：
| Year | Category 1 | Category 2 | Total emissions | Reference |
|---|---|---|---|---|
| 2020 | 22,071 tons | 59,119 tons | 81,190 tons | IPCC Fourth Assessment Report in 2007 |
| 2021 | 25,395 tons | 79,926 tons | 105,321 tons | IPCC 2013 Greenhouse Gas Inventory Report |
| 2022 | 32,656 tons | 59,906 tons | 92,562 tons | IPCC 2013 Greenhouse Gas Inventory Report |
For the Carbon Chemical Manufacturing Department, the base year for greenhouse gas inventory is 2018, i.e., the year when the first greenhouse gas inventory was conducted. The primary type of energy source used in manufacturing processes is electricity as most of the processes involve the use of non-combustion equipment, with only a few using liquefied petroleum gas as energy source. In 2022, direct emissions (Category 1) and indirect emissions (Category 2) accounted for 1% and 99% of the total emissions, respectively. Greenhouse gas emissions from each category of emission source at the Carbon Chemical Manufacturing Department for the base year and the last three years are detailed as follows:
| Year | Category 1 | Category 2 | Total emissions | Reference |
|---|---|---|---|---|
| 2020 | 34 tons | 11,075 tons | 11,109 tons | IPCC Fourth Assessment Report in 2007 |
| 2021 | 121 tons | 11,108 tons | 11,229 tons | IPCC 2013 Greenhouse Gas Inventory Report |
| 2022 | 203 tons | 16,741 tons | 16,944 tons | IPCC 2013 Greenhouse Gas Inventory Report |
CSCC’s GHG emissions intensity for the last three years are listed as follows:
| Year | Parent company-only revenue | Category 1 | Category 2 | Total emissions | Total emissions/ Revenue |
|---|---|---|---|---|---|
| 2020 | NT$5,251,341,000 | 24,930 tons | 69,372 tons | 94,302 tons | 0.0180 |
| 2021 | NT$7,810,018 | 25,516 tons | 91,034 tons | 116,550 tons | 0.0150 |
| 2022 | NT$10,442,949 | 32,859 tons | 76,647 tons | 109,506 tons | 0.0105 |
We continue to refine the energy conservation plans for our manufacturing departments in accordance with the best available technologies from our international peers. Our performance in the implementation of relevant improvements for 2022 and energy conservation management plans for the last three years is detailed as follows:
| Energy conservation action plan | Estimated benefit from energy conservation | |
|---|---|---|
| Coal Chemical Manufacturing Department | Replacement of LED flat panel lights in the second control room | Reduce electricity consumption by 2.3 MWh each year |
| Installed new E102B2 heat exchanger for DT-AO heat recovery | Reduce steam consumption by 3,884 tons each year | |
| Recycle terminal storage tank MPC | Reduce steam consumption by 1,533 tons each year | |
| Change of steam jacket of breather valve in B/C/D tank to LPS | Reduce steam consumption by 2,518 tons each year | |
| Reduce electricity consumption rate of graphitization furnace | Reduce electricity consumption by 12 MWh each year | |
| Change laboratory lights to induction lighting | Reduce electricity consumption by 4.58 MWh each year | |
| Improve the pumping load of the west cooling water tower | Reduce electricity consumption by 118.1 MWh each year | |
| Reduced diesel fuel consumption in C/B plant | Reduce diesel consumption by 76.2 kL each year | |
| E4101G~L equipment enlargement to improve heat exchanger efficiency | Reduce natural has consumption by 59.202 kilostere each year | |
| Carbon Chemical Manufacturing Department | Reduce exhaust fan horsepower | Reduce electricity consumption by 100.22 MWh each year |
| Reduce cleaning pump cycle hours | Reduce electricity consumption by 64.40 MWh each year | |
| Reduce tap pump pressure holding hours | Reduce electricity consumption by 18.89 MWh each year | |
| Participate in Taipower's demand bidding program | Reduce electricity consumption by 173.82 MWh each year |
| Project | 2020 | 2021 | 2022 | |
|---|---|---|---|---|
| Coal Chemical Manufacturing Department | Number of energy conservation action plans | 3 | 3 | 9 |
| Amount of electricity saved (MWh) | 78 | 32 | 155.98 | |
| Amount of steam saved (ton) | 0 | 3,884 | 7,935 | |
| Natural Gas Saved (Nm3) | 0 | 0 | 59,202 | |
| Amount of diesel oil saved (kL) | 1.204 | 0 | 76.2 | |
| Total amount of energy saved (GJ) | 323 | 11,654 | 29,094 | |
| Annual electricity saving rate (%) | 0.15 | 0.07 | 0.23 | |
| Cumulative electricity saving rate (%) | 1.96 | 1.72 | 1.51 | |
| Total energy saving rate (%) | 0.03 | 1.07 | 2.79 | |
| Reduction in greenhouse gas emissions (ton of CO2e) | 43 | 1,220 | 2,907 | |
| Carbon Chemical Manufacturing Department | Number of energy conservation action plans | 4 | 3 | 3 |
| Amount of electricity saved (MWh) | 65 | 51 | 357 | |
| Total amount of energy saved (GJ) | 1,536 | 183 | 1,286 | |
| Annual electricity saving rate (%) | 1.93 | 0.54 | 0.80 | |
| Cumulative electricity saving rate (%) | 8.37 | 2.31 | 1.81 | |
| Total energy saving rate (%) | 8.37 | 2.31 | 1.81 | |
| Reduction in greenhouse gas emissions (ton of CO2e) | 295 | 92 | 93 |
According to the carbon reduction projects completed in 2022, CSCC reduced CO2 emissions by 3,641 tons. The related projects and the results are as follows:
| Type | Project | Reduction of CO2 emissions (tons) |
|---|---|---|
| Amount of steam saved | Install heat exchangers to reduce steam consumption | 2,584 |
| Change of MPS/MPC piping material at district 200 zone 1 to stainless steel to reduce breakage | 732 | |
| Change of steam jacket of breather valve in B/C/D tank to LPS to reduce steam consumption | 210 | |
| Amount of electricity saved | Update of E127B to spiral heat exchanger | 29 |
| Reduce cooling water at the west to reduce electricity consumption | 71 | |
| Program on replacement of LED flat panel lights in the second control room | 1 | |
| Change laboratory lights to induction lighting | 3 | |
| Reduce electricity consumption rate of graphitization furnace | 11 | |
| Total | 3,641 | |
Greenhouse Gas Control
According to the 2015 Paris Climate Agreement, each country must review their own contributions to carbon reduction with the goal of limiting global warming to well below 2 degrees Celsius by the end of the century. In 2018, the Intergovernmental Panel on Climate Change (IPCC) recommended that global warming should be controlled further to within 1.5 degrees Celsius while emphasizing the need to achieve a 45% reduction in carbon emissions by 2030 and realize net zero emissions (and carbon neutrality) by 2050.
With the aim of implementing greenhouse gas control in line with the aforesaid policy targets, we completed a carbon footprint inventory of two products, namely green mesophase and mesophase graphite, and the relevant external verification in 2021. Furthermore, we have drawn up a carbon footprint inventory plan for our major products according to such an experience, with the expectation of completing a carbon footprint inventory of all our major products by 2026. In 2022, we completed a company-wide greenhouse gas inventory and the relevant external verification once every two years in accordance with the ISO 14064-1:2018 standards as the benchmark for the reduction of greenhouse gas emissions. With the implementation of various energy conservation and process improvement measures, we aim to reduce greenhouse gas emissions by 1% or more over the medium term and long term after 2023, and purchase green electricity to reduce carbon emissions. Based on the greenhouse gas inventory completed by CSCC in 2022, the total amount of emissions from all categories of emission source was 121,147 tons. Beginning in 2024, CSCC will propose reduction plans for each category of emission source each year, with the expectation of effectively reducing greenhouse gas emissions on an ongoing basis.
Greenhouse gas emissions at CSCC in 2022
| Scope | Gas emissions | Ratio |
|---|---|---|
| direct greenhouse gas emissions | 32,859 tons | 27.1% |
| indirect greenhouse gas emissions from input energy sources | 76,647 tons | 63.3% |
| greenhouse gas emissions from transportation | 11,641 tons | 9.6% |