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2018120413123920290.Pdf Reporting Principles This is the twelfth issue of the annual Sustainability Report published by Taiwan Power Company (Taipower). This year, the statistics and disclosures in the report have been compiled in accordance with the Sustainability Reporting Standards of the Global Reporting Initiatives (GRI). This report has been verified by SGS Taiwan to ensure that the report meets the requirements of both the Core Option of the GRI and the accountability principle standards (APS) in AA1000 (Type 1 Moderate Level). The contents featured in this Sustainability Report have been compiled from data submitted by relevant units of Taipower. To ensure the accuracy of report contents and compliance with stakeholders’ expectations, each year, an editorial meeting is held upon the completion of the report’s initial draft for all data-submitting units to review the contents of the report and provide feedback on the report. All contents of the report must be approved by the corresponding unit supervisor, the President and Chairman before publication. Considering the changes in Taiwan’s economy and environments in conjunction with the three major developmental issues (reliable power supply, Energy Transition and corporate transformation) that Taipower now faces, Taipower’s 2018 Sustainability Report has adopted “Achieving Sustainable Power through Dedication” as its theme as the company responds to international trends in green Energy Transition and domestic expectations for reliable power supply. The contents of each chapter have been compiled based on the roadmap of Taipower’s five major developments in the future to reflect the roles that the company is anticipating to assume in the days to come. Inquiries In 2015, Taipower established its Sustainable Development Website that serves as a channel to communicate with stakeholders about the company’s performance on sustainability issues (including issues of lower materiality Period Covered by the Report such as “Contribution to Society”, which are not covered in this report). The company has also introduced stakeholder section and questionnaires in the hopes of facilitating smooth communication with our stakeholders. This From January 1 to December 31, report is also available in English, and the full version of the English report 2017 (For the sake of complete can be downloaded from Taipower’s website. In addition, the “Information disclosure and comparability, Disclosure” section on Taipower’s website is updated regularly to provide the the report also includes some latest statistics on specific aspects of the company’s operations, including historical data). management, power generation, environment and so forth. The company is eager to receive any feedback regarding its Sustainability Report. Your input will enable Taipower to better meet your expectations and publish our next Sustainability Report in the third quarter of 2019. You can reach us by the following methods: Scope of the Report This report covers Taipower’s data and information regar- ding sustainability issues and Taiwan Power Company achievements within the areas of operational development, Contact: Department of Corporate Planning social responsibility and en- Address: 12F, No.242, Sec.3 Roosevelt Rd., vironmental sustainability. Taipei City Taiwan (R.O.C), 10016 Telephone: +886-2-2366-6463 Email: [email protected] Website: http://www.taipower.com.tw/ Taipower’s Sustainable Development Website: https://csr.taipower.com.tw 1 Sustainability Reports Published every August Reporting Principles 1 2017 2016 2015 Statement from the Chairman 4 Taipower's Value Chain and 6 Operational Elements ѮᢊႫΨϴѧҗ៉ൢ֙ਪ Reliable Power Supply 8 Energy Transition 10 ³ Company Transformation 12 2014 2013 2012 台灣電力公司永續報告書 台灣電力公司永續報告書 台灣電力公司永續報告書 台灣電力 電利台灣 Appendix Corporate Highlights 142 Taiwan Power Company Sustainability Report Taiwan Power Company Sustainability Report Financial Performance 144 GRI Standard Content Index 146 2011 2010 2009 Assurance Statement 151 台灣電力公司永續報告書 ����������� 2010 台灣電力公司永續報告書 2009 Taiwan Power Company Sustainability Report Taiwan Power Company Sustainability Report 2008 2007 台 灣 電 力 公 司 永 續 報 告 書 2 0 0 8 台 灣 電 力 公 司 永 續 報 告 書 2008 台 灣 電 力 公 司 出 版 Taiwan Power Company Sustainability Report Table of Contents 1 Taipower and Sustainability 1.1 Taipower Profile 15 1.2 Taipower's Mission and Vision 17 1.3 Management Philosophy and Strategy 18 1.4 Corporate Sustainable Governance 19 1.5 Stakeholders and Material Topics 29 4 Adopter of Smart Living 1.6 Risk and Opportunities 36 4.1 Smart Grids Deployment 90 4.2 Enhancing Power Supply Infrastructures 94 4.3 Demand Management 97 2 Provider of High Quality Power Services 2.1 Re-engineering the Company 46 2.2 Enhancing Reliability of the Power Supply 50 5 Agent of Environmental 2.3 Enhancing the Accessibility of Power Services 60 Friendliness 2.4 Creating Customer Satisfaction 62 5.1 Response to Climate Change 102 5.2 Renewable Energy Development 104 5.3 Mitigating Environmental Impact 109 5.4 Energy Resource Management 113 3 Intergrator of Energy 5.5 Environmental Footprints 118 Networks 3.1 Transition of Energy Services 70 3.2 Improving Power Generation Capabilities 80 3.3 Procurement of Materials 83 6 Practitioner of Corporate Social Responsibility 6.1 Integrity Management and Legal Compliance 122 6.2 Building a Sound Working Environment 127 6.3 Supplier Management 134 6.4 Enhancing Nuclear Communications 137 Statement from the Chairman The year 2017 has seen rapid change in the power industry. Developed countries and neighboring nations alike embraced the integration of carbon trading systems into their power industries. Moreover, at least 131 major international corporations pledged to exclusively use renewable energy in meeting their power needs. It is clear, that energy transition has become a focal point for governments and corporations alike. In Taiwan, amendments to the Electricity Act came into effect and a growing amount of public attention was paid to the issues of power supply stability and air pollution. In response to these trends, Taipower has shouldered its social responsibilities and dedicated itself to energy transition, the promotion of green energy and a corporate transformation to a holding company. In order to stabilize Taiwan’s electric power supply amidst these challenges, Taipower is pursuing four major goals in order to create a stable and sustainable business: Advancing Energy Transition In keeping with national energy transition policies, Taipower is pursuing its eco-friendly corporate mission in the following ways: 1. More Gas, Less Coal The government’s energy aims to establish an energy generation portfolio composed of 50% gas, 30% coal and 20% renewable energy by 2025. Taipower plans to upgrade and expand existing facilities with high-efficiency combined cycle, gas-fired units and high-efficiency ultra-supercritical coal-fired units. The company will also construct new Liquid Natural Gas (LNG) receiving terminals to improve the stability of the gas-fired power supply. 2. Equal Emphasis on Wind and Solar Power The Phase V Wind Power project in the Changhua Coastal Industrial Park is expected to begin commercial operation by 2020. Additionally, a Demonstration Offshore Wind Farm, currently in Phase I, was launched in early 2018. The total installed capacity of that project comes to 109.2MW and is expected to produce over 360 GWh per year – equivalent to the annual power consumption of around 90,000 residential households. Taipower’s Changhua Coastal Industrial Park Solar Power Project commenced in early 2018 and will be Taiwan’s largest (and the world’s 54th largest) solar farm with a total installed capacity of 100 MW. The project will generate 130 GWh annually – enough to supply the needs of about 30,000 residential households. As part of the government’s two-year solar power promotion project, Taipower is developing a demonstration site for a 150MW solar power system located at the salt fields in Tainan. The project is scheduled for completion in 2019. Promoting Company Transformation Amendments to the Electricity Act came into effect in 2017, prompting the transformation of Taipower’s corporate structure. The Taipower company is to be unbundled into constituents part that will then be legally bound into a corporate power group that is responsible for ensuring a reliable power supply and boosting competitiveness within the market. In July 2017, Taipower established Transformation Promotion Committee that is providing a consensus platform for ensuring a complete, and on-schedule transformation of the company. In addition, the company has conducted a range or research on topics related to the future liberalization of the market. This research has explored financial planning, wheeling contracts and regulations, dispatch regulations, dispatch fee calculations, public retailer strategies and power plant operation improvements. 4 Strengthening Internal and External Communications Internally, Taipower has been actively communicating with employees about the challenges associated with transformation. In 2017, a total of 21 employee communication sessions were held to facilitate and foster consensus and to promote transformation among the company’s 26,000 employees. Externally, Taipower sought to engender public support and consensus with regards to issues such as air pollution, the removal of nuclear power, tariff schedule adjustments and power supply reliability. Smart Life Strategy Taipower is actively promoting smart living through the
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