Water Resources Management
We are targeting the management of water resources for Company sites within water risk areas and has set management goals. By gaining more understanding of the social and environmental impacts on local communities, the Company is able to respond properly and protect water resources.
Water Risk Management
FENC regularly assesses the level of water risks in areas where FENC production sites are located using the Aqueduct Water Risk Atlas from the World Resources Institute (WRI). The tool assesses the overall water risks, such as water stress, riverine flood risk as well as regulatory and reputational risks. When the overall water risk score is between 3 and 4, which indicates “high risk,” the production site is considered to be located in an area with high water risks.
According to the assessment for the fourth quarter of 2023, 1/3 of FENC production sites are located in high-risk areas. The Company responded by strengthening its adaptation strategies, such as improving water efficiency during production, establishing rainwater harvesting systems and increasing the reclaimed water recovery rate.
Water Risk Adaptation and Mitigation Measures
Water scarcity is among the risks brought by the climate change. To mitigate and adapt to this risk, FENC implemented a host of water conservation projects. These water conservation projects include the reduction of evaporation and wind losses from the cooling tower; increase of the concentration ratio for the water circulating through the cooling system under controlled production conditions; establishment of water recycling and reuse systems that incorporate membrane technologies to treat wastewater.
In 2023, FENC devoted approximately NT$27.98 million to projects that avert water-related risks, saving a total of 779,700 kiloliters of water, which translates to NT$12.9 million in annual financial benefits. In 2024, FENC is devoting NT$12 million in capital budget to the mitigation of water-related risks.
In 2023, water withdrawal from FENC sites in water-stressed areas was down by 13% and water consumption by 5% compared to 2022. Moving forward, FENC will continue its efforts to improve water efficiency, promote reasonable water allocation and utilization, and fulfill the sustainability of water resources.
Water Withdrawal and Water Consumption of Production Sites Within Water Stress Zones
Unit: megaliter
2020 | 2021 | 2022 | 2023 | |
Rivers/Lakes/Streams | 647 | 0 | 0 | 0 |
Third-party Water | 4,911 | 5,529 | 5,087 | 4,388 |
Groundwater | 0 | 0 | 0 | 0 |
Rainwater | 36 | 53 | 28 | 37 |
Total Water Withdrawal | 5,594 | 5,582 | 5,115 | 4,425 |
Total Water Consumption | 2,971 | 2,945 | 2,505 | 2,369 |
Note:1. According to the Aqueduct Water Risk Atlas from the World Resources Institute, an area is considered to be faced with water stress when the ratio of total annual water withdrawal to total available annual renewable water supply is 40% or higher.2.The boundary of data collection includes the five FENC production sites located in water-stressed areas. The concentrations of total dissolved solids (TDS) tested across all water withdrawal categories are equal to or lower than 1,000 mg/L. |
Water Discharge of Production Sites Within Water Stress Zones
Unit: megaliter
2020 | 2021 | 2022 | 2023 | ||
| TDS | Freshwater (TDS≤1,000 mg/L) | 680 | 729 | 752 | 780 |
Other (TDS>1,000 mg/L) | 1,943 | 1,908 | 1,858 | 1,456 | |
| Destination | Surface Water | 0 | 0 | 0 | 0 |
Off-Site Wastewater Treatment Facilities | 2,623 | 2,637 | 2,610 | 2,236 | |
Other Purposes | 0 | 0 | 0 | 0 | |
Total Water Discharge | 2,623 | 2,637 | 2,610 | 2,236 | |
Note: 1. According to the Aqueduct Water Risk Atlas from the World Resources Institute, an area is considered to be faced with water stress when the ratio of total annual water withdrawal to total available annual renewable water supply is 40% or higher. 2. The boundary of data collection covers the five FENC production sites located in water-stressed areas. The wastewater is processed at the internal wastewater treatment plant. Once reaching the effluent standards, all wastewater enters the municipal sewer system to be treated at the municipal wastewater treatment plant and then discharged. |
OTIZ, located in a water-stressed area, has actively implemented various water-saving measures, aligning with government policies and improving technologies to achieve significant water conservation results. In terms of avoidance, they have managed to decrease water usage by increasing the concentration ratio of cooling water and reducing the frequency of softening regeneration. Regarding recycling and treatment, they reuse the concentrated wastewater generated during the RO membrane filtration process, expand rainwater recovery pipelines to increase rainwater collection during the flood season, and promote zero discharge of wastewater from production processes.
