Water Stewardship

Water Risk Management

(1) HIWIN is dedicated to water efficiency and sustainable water use and management.

(2) Comply with government laws and regulations and pay close attention to sustainable water management trends around the world.

(3) Formulate water management programs and set targets, track progress, and evaluate outcomes.

(4) Enhance our ability to respond to risks from extreme climate events and climate change and continue to roll out climate change response measures.

(5) Integrate internal and external resources and actively evaluate water risk management across the supply chain and value chain.

(6) Continue to invest in and roll out water management technologies and knowledge and develop diverse water resources.

(7) Compile data from water life cycle management to increase transparency of water management at HIWIN.

In 2021, Taiwan experienced a severe drought that lasted for 100 years. This water scarcity issue has had a significant impact on business operations, highlighting the importance of water as an essential natural resource for daily human life. HIWIN has been actively engaged in water conservation efforts to mitigate the risks of water shortages. Through the implementation of comprehensive systems for planning, verification, and inspection action management, we have successfully increased water recovery rates and achieved water balance, ensuring sustainable production.

In 2022, HIWIN obtained verification for ISO 14046:2014 water footprint. This certification allowed us to assess the rational use of water in our manufacturing processes and identify opportunities for water recycling, thereby reducing our reliance on tap water. Additionally, HIWIN Headquarters received ISO 46001:2019 certification for water efficiency management systems in August 2022. This certification, provided by the Taiwan Green Productivity Foundation, has enabled HIWIN to enhance our water efficiency performance by establishing management indicators.

HIWIN is committed to a systematic approach in water management, as demonstrated by the establishment of ISO 46001:2019 water efficiency management systems. These systems outline our organization's water use requirements and provide recommendations to guide our water usage practices. This includes the establishment of operational activity indicators and water use efficiency indicators, as well as practical actions such as supervision, measurement, documentation, reporting, design, and procurement. The ultimate goal is to improve the efficiency of water equipment, systems, processes, and personnel training, in order to achieve optimal water use efficiency.

Using HIWIN Headquarters as a case study, the water consumption audit revealed that air-conditioning and cooling were responsible for 60% of the factory's water usage, averaging 6,890 MT per month. To address this, we have devised a water consumption goal and action plan, including measures to "enhance the quality of water recovered from the RO treatment equipment for air-conditioning and cooling," with the aim of reducing water consumption. The project was finalized in 2022, resulting in a 40 MT increase in the daily target for recycled water. By regularly monitoring these targets, the Company has established action plans and objectives for the upcoming year. This management cycle will enable us to improve the efficiency of water resource management.

Water Resource Structure and Risk Management

In 2022, HIWIN consumed a total of 673 million liters of water, sourced exclusively from local water companies as tap water. To assess water risk levels in areas where HIWIN operates, we utilized the Aqueduct tools provided by the World Resources Institute (WRI) and Taiwan's water distribution data. It is worth noting that all HIWIN factories are strategically situated in regions with minimal water stress risks.

Water Recycling Planning and Water Efficiency Management in Factories

HIWIN has implemented internal water stewardship measures to actively conserve water and improve our water recovery systems, with support from industrial parks and in alignment with government initiatives. In 2022, we successfully implemented recycled water systems for cooling water towers at HIWIN Headquarters and for process use at Dapumei Factory 3, accounting for 8.4% of our total water consumption. In 2023, we will further expand our recycled water program, aiming to increase the volume to 12%. To effectively manage and monitor water consumption in our factories, we are gradually installing smart water meters. This installation has been completed at HIWIN Headquarters and Dapumei Factory, and will be extended to Yunlin Factory 1 and 2 in 2023. By 2025, we plan to have smart water meters installed in all our factories. These meters can be integrated with our energy monitoring systems to track water flow, detect equipment abnormalities or malfunctions, and enable immediate adjustments when necessary. HIWIN is actively collaborating with the government's reclaimed water plan and accelerating the use of wastewater purification supplies. In 2023, we will begin planning for the utilization of industrial reclaimed water at Yunlin Factory 3.

HIWIN primarily withdraws tap water and fresh water (≤1,000mg/L total dissolved solids) for its various needs. The Company has a total water storage capacity of 16 million liters, which represents the change in water storage from the beginning to the end of 2022. This water storage is primarily utilized for air conditioning cooling purposes.

In 2022, water consumption decreased by 23% compared to the previous year, mainly attributed to an increase in the use of recycled water through the promotion of effective water stewardship. This resulted in a 2.5% increase in the recycled water rate. Furthermore, the water intensity in 2022 was 0.59 (million liters/US$1 million), representing a 17% decrease compared to 2021.

Water Pollution Prevention and Control

All HIWIN factories have submitted Water Pollution Control Measure Plans and Permit Applications in accordance with regulations. The majority of water used for cooling towers, domestic purposes, and industrial processes is sourced from tap water.

Wastewater discharges at all locations are treated by the factories' wastewater treatment equipment to meet the required discharge standards. Prior to discharge, the wastewater is further treated by the industrial park or service center's wastewater treatment center. HIWIN has established laboratories to monitor and regularly test water quality in real-time, ensuring compliance with the discharge standards set by the industrial parks. Additionally, we have engaged an EPA-authorized testing agency to conduct on-site inspections of our wastewater discharge, as well as a dedicated vendor to manage wastewater generated from manufacturing processes. All monitored values for wastewater discharge were found to be in compliance with legal standards.