Water Resources

To effectively monitor water-related risks across its global facilities, Nan Pao has adopted the World Resources Institute's (WRI) Water Risk Assessment Tool (Water Aqueduct). This tool, combined with an understanding of each plant's actual management practices, forms the basis for water risk response plans at Nan Pao's major sites in Taiwan. The risk management plans address two primary hazards: heavy rainfall and water scarcity.

In 2024, Nan Pao Taiwan recorded a total water withdrawal of 103.239 thousand cubic meters, an increase of 15.343 thousand cubic meters or 17.46% compared with 2023. Although annual revenue also grew during the same period, water intensity rose slightly by 1.36%, failing to meet the originally set annual target.

In recent years, extreme climate events have caused instability in water supply, often leading to conflicts between industrial and domestic water demands. To address these challenges, Nan Pao has implemented both water conservation and diversification measures, continuously improving water treatment systems and enhancing process water efficiency. The Company also emphasizes wastewater recycling and reuse. Examples include the recovery of effluent discharge, rainwater harvesting, steam condensate recovery, and cooling water recovery from heat exchangers, which together increase water reuse rates across plants.

 

 

 

 

 

Group Water Withdrawal and Response Measures in Water-Stressed Areas

 

 

Water Withdrawal Intensity of Nan Pao Group

 

Water Stewardship and Risk Management at Nan Pao

Risk Type	Assessment Aspects	Our Approach
Water Scarcity Risk (Dependency)	-        Future water quantities available   -        Potential regulatory changes (e.g., withdrawal restrictions, tariffs, reclaimed water requirements)	We use WRI Aqueduct to assess current and future water stress at our sites, monitor regional supply trends, and respond to regulations such as Taiwan’s water tariff and reclaimed water policies. Measures include upgrading treatment systems, improving efficiency, and recycling wastewater, rainwater, and condensate.
Water Pollution Risk (Impact)	-        Water quality-related risks   -        Impacts on local stakeholders   -        Potential regulatory changes (e.g., discharge standards, pollution controls)	Our in-house lab conducts daily COD tests, while third-party labs perform biannual heavy metal and toxicity assessments. All results remain below control limits, ensuring effluent quality exceeds standards and safeguarding local rivers, ecosystems, and communities.