FENC assessed the water risk levels of areas at which its production sites are located using the Aqueduct Water Risk Atlas developed by the World Resources Institute (WRI). The 2022 results are identical to those from 2021. Seven of the FENC production sites are located within water stress zones. FENC aims to continue enhancing the operation and management of these sites and establish water resources management targets. The Company also aims to gain insight into the local social and environmental impacts, propose corresponding measures and protect the precious water resources.

Water Risk Regions

1.Water Conservation Measures

Domestic consumption from employees constitutes the majority of water consumption at FEAZ. Thus, the plant calls on all employees to join its water conservation campaign. The plant affairs section as well as the equipment and energy section inspect the facilities for any leakage. FEAZ also meets with FEAV and FENV monthly to discuss and share their water conservation approaches and improvements.
 

OTIZ combines its endeavors in water conservation and pollution prevention and control, conserving the quantity while protecting the quality of water resources. The two goes hand in hand, managing effluent with comprehensive scientific approaches. The first focus for water conservation is avoidance. Strategies include increasing the concentration of cooling water, reducing the frequency of water softening and adjusting the time setting for sand filtration and softening cycles. The second focus is recycling and treatment with approaches such as recycling and reusing RO concentrate, larger pipelines for rainwater collection, increasing rainwater recycling during flood periods as well as recycling and zero discharge of production wastewater.
 

2. Value Chain Collaboration

In 2022, FEDZ held two meetings with brand customers to share its water conservation performance. Also invited are their suppliers as well as subcontractors and companies from the environmental sector to present the adopted and latest water conservation technologies. Also in attendance are suppliers of dyeing axillaries, with whom conversations were conducted on the use of low-COD and low-alanine chemicals to reduce pollution. 
 

To address water resources management, FEAV installed multiple water meters on the plant-wide water supply system to take sectional readings and control water consumption. The plant also installed water conservation devices and a rainwater recycling system, reducing water consumption by using the recycled rainwater for landscape irrigation and cleaning. The utility department conducts regular inspection and maintenance on the water supply system. The plant even replaced the underground sewage lines with transparent tubes. Increased convenience in making daily inspection and maintenance means repairs can be made in time to avoid waste.
 

3. Costs of Water-Related Risks

FENC production sites located in water stress zones devoted approximately NT$55 million in water conservation projects in 2022. The projects have delivered NT$5.5 million in benefits from water conservation and reduced water conserved by 710,000 kiloliters.

Water withdrawal from production sites in water stress zones declined by 15% in 2022 compared with the previous year while water consumption increased by 7%. FENC will persist in the improvement of water efficiency, promoting reasonable distribution and utilization while fulfilling sustainable use and development of water resources.

Water Withdrawal and Water Consumption of Production Sites Within Water Stress Zones

Unit: megaliter

Water Discharge of Production Sites Within Water Stress Zones

Unit: megaliter