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CMC is the first among disk manufacturers of the world in acquiring accreditation of carbon footprint to prove our determination in preserving the global environment through concrete action. In addition, CMC also persists in using environmentally friendly design of the physical appearance of products and packing for the preservation of the global environment. Disk products will become the most eco-friendly products of the world among other storage media.
By introducing energy conservation, green energy, and environmentally friendly (biodegradable) materials into its manufacturing process, CMC has minimized the environmental impact of its production process while reducing the consumption of Earth’s resources and greenhouse gas emissions. CMC has been conducting an independent GHG inventory and management since 2014. In 2022, we introduced ISO 14064-1:2018 GHG inventory and passed third-party verification.
Based on the GHG inventory results, CMC believes that reducing greenhouse gases is essential for addressing climate change and global warming. As a result, the Company has been committed to improving its greenhouse gas emissions in recent years.For reducing the consumption of energy, all at CMC participate in energy saving and carbon reduction. Through the management plan of ISO 14001 and ISO50001, CMC presents energy saving plans annually and acts accordingly. Through process improvement, replacement of obsolete equipment or adjustment of the air compressors with energy saving measures, CMC has properly implemented its plan of energy management at the plants with annual tracking, reviewing the emission of greenhouse gas from all plant sites, and related management policies.
In accordance with our carbon reduction strategy, the Company continuously promotes energy data monitoring and tracks the progress of energy-saving implementations by each responsible unit, so as to achieve the expected annual carbon reduction target of 1% and to drive significant, concrete actions.
Take 2022 emissions (110,207.9623 tCO2e/year) as the base yeare/year)
As a key member of the technology industry, CMC Magnetics Corporation realizes the possible influence of the corporation on the environment. As a result, CMC seeks to provide eco-friendly products and services through advanced technologies and innovative methods to preserve a sustainable environment for the next generation. Further to its compliance with applicable legal rules of the government, CMC also seeks to reduce pollution through “reduction → reuse → recycle,” and thereby purifies and reduces the volume of the residual pollutants, and then proceeds to the circular use of the materials through related processes and technologies for the sustainability of the environment and the goal of net zero emission and green production. An effective energy management system was set up in support of the global action of energy saving and carbon reduction to adjust the structure of energy consumption in manufacturing and set up the mechanisms for energy management. Energy saving and efficient use of energy helps to reduce the cost of production, upgrade competitive power, and cut down the cost of operation of the corporation and the emission of greenhouse gas significantly. This also serves the purpose of environmental sustainability.
CMC takes environmental protection as its inevitable responsibility, and promise to perform the following tasks in the spirit of pollution prevention and continued improvement:
1. Proceed with relevant treatment process and control in compliance with domestic laws governing environmental protection and to the
needs of the customers.
2.Improve the efficient use of all resources through design and process improvement to reduce the consumption of energy and cut
down unnecessary waste.
3. Communicate with the suppliers and employees and continue to educate the employees the idea of environmental protection.
4. Reduce the generation of solid wastes through the improvement of yield rate and resource recycling.
CMC has been accredited with ISO 14001 on environmental or energy management system specified as follows:
Item of accreditation
Date of accreditation
Validity
Certificate
Energy Management and Utilization
The Company’s primary energy source is purchased electricity, which is also our main source of greenhouse gas emissions, accounting for more than 99.5%. In the face of rising electricity prices and the advent of carbon fees and carbon taxes, In terms of energy strategy, the Company prioritizes internal conservation of electricity consumption, with the purchase of green energy as a supplementary measure.
Energy Conservation Measures
In response to the efficient energy use, the Company’s specific actions are as follows:
● Consolidate production equipment and integrate production lines that exhibit high production efficiency and less
power consumption.
● Eliminate production lines that exhibit high energy consumption.
● Implement centralized management of the production area to reduce the power consumption of the air
conditioning system.
● Adjust the manufacturing process to optimize conditions that exhibit high energy consumption, thereby reducing
the power consumption of the production process.
● Eliminate and replace old, power-consuming plant equipment.
● Provide incentives for energy-saving proposals.
● Promote and encourage employees to save electricity.
Energy Conservation Performance in Recent Years
Thanks to the Company’s ongoing internal energy review and control, as well as energy-saving measures and plans, electricity consumption in 2023 decreased compared to 2022. We will continue to make various energy-saving improvements this year.
Power Consumption Over the Years
In the future, the Company will continue to implement various energy-saving improvements aligned with production. In addition to providing incentives for energy-saving proposals and offering educational training, we will establish an external audit mechanism for energy conservation. We will appoint a professional team to conduct timely energy-saving inspections and project implementation, providing our employees with new energy-saving ideas and fostering an attitude to maintain the effectiveness of energy conservation.
Renewable energy
At the current stage, the company does not use any renewable energy but will accelerate the evaluation of the feasibility of introducing green energy in the future.
Water consumption at the plant sites
Influenced by global climate change, rainfall distribution has become uneven in various regions of Taiwan. This has impacted not only people’s daily lives but also economic development, highlighting the importance of water issues. CMC understands the impact of water resources on its operations. To mitigate environmental impacts and the risk of water shortages, CMC continuously promotes water conservation measures. The Company’s water consumption in 2023 totaled 309 million liters, representing a decrease of 176 million liters from the 485 million liters consumed in 2022. In the future, CMC will continue to dedicate itself to various water conservation measures. CMC will continue inspecting for water leakage, monitoring to prevent losses due to abnormal water consumption, and developing additional water conservation and improvement measures in cooperation with production.
CMC Magnetics Corporation has appointed a designated body to manage solid wastes for the effective control of the sources and the volume of wastes. Under the spirit of minimization of solid wastes by volume and the optimization of the recycling and reuse rate of resources, CMC selects qualified contractors for the effective treatment of solid wastes for the effective management and reduction of solid wastes. Solid Wastes
In 2023, the total volume of solid wastes was 93.23 tons, which was a decrease of 70.78 tons from that in 2022. CMC made further effort in classifying general industrial wastes for proper management over the year to improve the recycling and reuse rate. The volume of general solid wastes was on the decline over the years and the recycling and reuse of resources is on the move to fulfill the commitment of reduction of solid wastes. The procedures for handling solid wastes are in compliance with applicable legal rules governing environmental protection. There was no report on violation of these laws in 2023.
The products of CMC were regulated by RoHS and all products were subject to the testing of SGS accredited institutions. The central quality control function is responsible for pursuing the operation procedures in full detail. The production, manufacturing, transportation and sale of products, and the production process do not generate or with the transport of any toxic wastes as defined by the Basel Accord except for general industrial wastes. All solid wastes from the business units were treated locally and not exported to other countries.
Statistics on Solid Wastes
Unit: ton
Item/year
Handling method
Hazardous industrial wastes
General industrial wastes
Total
2022
Incineration
27.47
136.54
164.01
2023
Incineration
40.23
53.00
93.23
For purpose of reducing solid wastes, CMC launched the program for combining the reduction of solid wastes by origin and classification of solid wastes for recycling. Solid wastes from the plant sites were classified in accordance with applicable laws, such as metal, packing materials, plastic, papers, and battery, which will be collected at designated collecting zones at the plant sites and office, and then referred to the qualified contractors for removal and cleanup.
At CMC, we are well aware of the impact of climate change and the importance of such issues on the Company’s sustainability. We follow TCFD to identify risks and opportunities brought along by climate change. By doing this, we are able to establish a management framework for climate change-related risks and opportunities. Risks and opportunities that may be material to the Company’s operations are identified through disclosure of four core elements: “governance,” “strategy,” “risk management,” and “indicators and objectives.” The relevant management actions taken are detailed in the table below:
