Taiwan Cement

TCC shows leading practices in its commitment to reducing GHG emissions by aligning its targets with the Science Based Targets initiative (SBTi) and setting clear milestones for 2025 and 2030, reflecting an ambitious time horizon. The company aims for an 11% reduction in emissions intensity by 2025 and a 20% reduction by 2030 from its 2016 baseline in both Taiwan and Mainland China. Further, it has a long-term goal of achieving carbon-neutral concrete by 2050.

TCC has detailed ‘Roadmap to Net Zero by 2050’, accentuating low-carbon cement production, resource recycling and green energy initiatives. This demonstrates a comprehensive approach to achieving its climate targets. Furthermore, the company links employee incentives with sustainability goals to ensure business alignment with its ambitious climate objectives.

No leading practices were identified for this company.

No leading practices were identified for this company.

While TCC has outlined clear targets for reducing emissions, its lack of specific goals for scope 3 emissions presents a notable risk. This omission might limit the company’s ability to fully address its indirect emissions, which often constitute a significant proportion of a company’s overall carbon footprint.

While TCC has outlined an ambitious decarbonisation strategy, certain areas present risks that could impact its efficacy. The lack of clear information on the explicit climate expertise within its oversight committee and its undefined extension of sustainable practices to the downstream value chain may limit the depth of its climate strategy’s impact. Additionally, though the company conducts climate scenario analysis, it fails to provide evidence of the direct influence of this analysis on key business decisions. Moreover, it does not specify expansion details and timelines for its low-carbon product range and alternative fuel research.

In 2022, TCC had dedicated a USD 18.4 million budget to research and development in advancing calcium-looping carbon dioxide capture technology. The focus on developing low-carbon 3D printing materials and carbon capture techniques highlights the company’s proactive approach to incorporating sustainable technologies. The company is currently exhibiting a 3.5% use of alternative fuels in its energy mix. TCC’s mixed performance in relation to the emissions intensity of its electricity use and minimal use of renewable energy for self-consumption indicate operational risks in energy management and sustainability. The company lacks clear information on the percentage of low-carbon electricity used, potentially affecting its ability to fully capitalise on renewable energy sources to achieve its carbon reduction goals.

TCC has implemented a comprehensive strategy to manage emissions, which focuses on accountability from its critical Tier 1 suppliers. The process involves rigorous monitoring through the Supplier Sustainability Self-Evaluation Questionnaire and emphasises continuous improvement via inspection and corrective actions. Additionally, TCC’s client engagement strategy promotes low-carbon solutions and supports clients in pursuing green certifications, enhancing sustainability across the value chain. TCC however does not consider science-based emissions reduction targets in its procurement policies. Moreover, the company lacks clarity regarding its process to review the climate policy positions of trade associations it is a member of and does not specify an action plan for disengagement from associations opposing climate action.

TCC aims to reduce its emissions by 11% by 2025 and by 20% by 2030 from its 2016 baseline across Taiwan and Mainland China. It targets carbon-neutral concrete by 2050 but lacks specific goals for scope 3 emissions.

TCC’s commitment to decarbonisation includes setting science-based targets, investing in low-carbon technologies and improving supplier and client engagement on sustainability. Despite some gaps, such as detailed plans and scope 3 emissions targets, the company’s efforts show a consistent approach towards achieving net-zero emissions by 2050.

The company shows mixed performance in relation to the emissions intensity of its electricity use, with a slight increase in Taiwan but a decrease overall including its operations in Mainland China. The company is committed to reducing emissions through various sustainability measures. However, it lacks transparency on detailed actionable plans and consideration of the full value chain to achieve this.

Currently, TCC uses 3.5% alternative fuels and invests 0.6% of its revenue in R&D for low-carbon technologies. Its sustainability measures have led to an overall reduction of 0.8% in the annual emissions intensity of its electricity use.

TCC’s ‘Roadmap to Net Zero by 2050’ emphasises low-carbon cement, resource recycling and green energy. Its key strategies include improving energy efficiency by 50% by 2040, integrating renewable energy and deploying carbon-negative technologies. This holistic approach targets comprehensive emissions reductions through process enhancements and innovative technologies.

No evidence was found of the company’s commitment to social dialogue or of the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders.
No evidence was found of the company undertaking low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in its just transition planning.

No public commitment by the company was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s actions to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups.
No relevant disclosure was found of the company’s assessment of employment dislocation risks. No public commitment by the company was found stating its intention to reskill and upskill workers displaced by the transition to a low-carbon economy. Additionally, no evidence was found that the company reskills and upskills workers in a way that ensures gender balance and inclusion of vulnerable groups.

No relevant disclosure was found to show if the company identifies the impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to their social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders.
No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

The company commits to respecting human rights and the ILO fundamental rights at work, and it expects its business relationships to respect the ILO fundamental rights at work. However, no evidence was found of the company’s process to identify, assess and mitigate salient human rights risks in its own operations and supply chain. Moreover, no evidence was found of the company disclosing the stakeholders whose human rights have been affected by its activities.

The company commits to respecting the health and safety of its workers and expects the same commitment from its business relationships. However, no evidence was found of the company having a time-bound target for paying all workers a living wage. While the company discloses the proportion of its direct workforce covered by collective bargaining agreements, no relevant disclosure was found of the company’s required working hours. The company discloses some indicators of workforce diversity, such as the age and gender of its workforce by employee category. It also sets targets for the representation of women in the workplace and discloses the gender pay ratio by its significant locations of operation.

The company has a policy prohibiting bribery and corruption, and it includes corresponding clauses in its business relationship contracts. Additionally, the company discloses its global tax strategy and implements board accountability for the strategy. The company also discloses its expenditures on lobbying activities. Nonetheless, it can strengthen its disclosure on these subjects and other ethical business topics, such as personal data protection, responsible tax practices, and its lobbying and political engagement policy.