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Pollution Prevention & Environment Protection

Pollution Prevention & Environment Protection

POLLUTION PREVENTION AND ENVIRONMENTAL PROTECTION CPC AIMS FOR ENERGY CONSERVATION AND A CLEANER ENVIRONMENT

CPC has long been cognizant of environmental protection issues and in its commitment to finding solutions to the problems of waste-water disposal, air pollution and soil and groundwater contamination it has upheld the principle of sustainability in its corporate development. In doing so the company strictly adheres to generally-accepted environmental protection policies, is active in pollution prevention and exercises strong control over its resource usage. Additionally, it utilizes low-pollution production processes and the latest pollution-control facilities; it adheres to EIA commitments, has established a comprehensive environmental protection monitoring system and conducts education and training programs on environmental issues. In recent years the corporation has more systematically engaged in CO2 emission inventory and reduction endeavorsand in all of its new investment projects the best available control technology (BACT) and equipment for that purpose is installed to reduce pollution that may be caused by production and storage processes. On top of all that, CPC has further deepened its commitment to ecologically beneficial measures that include improving the quality of its petroleum products, reducing the PM25 element in air pollution and supporting the circular economy principle.


CPC has invested more than NT$50 billion since 1989 in its environmental protection efforts, chiefly by implementing a policy based on strict compliance with laws and regulations, adopting international standards, pollution prevention, energy saving, waste reduction and ongoing process improvement. Other important aspects have been full engagement by employees, CSR outreach and aiming for sustainability in its corporate development.Since 1995, all of the company's business units have been required to compile ISO 14001 environmental management system programs and 20 of them had received official certification by the end of 2017. Following global practice, a cross-corporation environmental accounting system to track the effectiveness of the company's environmentally-friendly measures was set up as far back as 2004.


Taiwan's own Greenhouse Gas Reduction and Management Act was formally promulgated on July 1, 2015. Its goal is the reduction of nationwide annual greenhouse gas (GHG) emissions to no more than 50% of the year 2005 level by 2050. Following the Paris COP 21 Agreement becoming effective on November 4 2016, CPC has vigorously expanded its carbon reduction plan, committing the entire company to GHG emissions reduction and setting carbon dioxide emissions reduction targets and time-lines for its existing plants. Going further, it will employ measures such as utilizing low-carbon fuels, energy conservation, raising the level of equipment efficiency and other actions consistent with the plan. In fact, since company-wide GHG emissionsreduction has been in effect as described above, as of end- 2017 there had been a saving of 2.936 million tons.


Moreover, in recent years the company has initiated energysaving projects that deploy the latest technology to effect real improvement in the energy usage efficiency level at all of its workplaces. From 2005 through 2017 cumulative energy efficiencies of 828,000 kiloliters of oil equivalent (KLOE) were achieved, equating to a reduction of 2.467 million tons of CO2 emissions. In that context and in line with the Energy Conservation Action Plan for Government Agencies and Schools promulgated by the Executive Yuan and which targets holding consumption as measured by the EUI below the given baseline until end-2019, CPC has implemented electricity conservation in its office premises. Going further, among other measures the company has mandated the replacement of all conventional lighting systems by LED units before end-2019.


CPC HAS RAISED THE QUALITY OF ITS PRODUCTS TO HELP ENVIRONMENTAL SUSTAINABILITY

In January 2000 CPC proactively ceased supplying the local market with leaded gasoline, in line with the greener fuel standards of other advanced countries and as a contribution to improving Taiwan's air quality. In June 2004 the sulfur content of its diesel fuel was reduced from 375ppmw to 50ppmw and in July 2011 reduced further to 10ppmw; and on January 1, 2007 high-quality gasoline with a sulfur content of 50ppmw - reduced to 10ppmw in 2012 - was launched. With the same motive, all CPC gas station fuel pumps have been retrofittedwith vapor recovery nozzles and the company's distribution depot fuel-filling areas with similar equipment. The consequent gasoline recovery now amounts to more than 3,200 kiloliters per year, helping to improve air quality by avoiding emission of the same amount of volatile organic compounds (VOCs).


The quality of Taiwan-made petroleum products continues to steadily improve after the many years of effort to that end, such that it has achieved comparability with, even rivals, its equivalent in Europe, Japan and the United States. However, CPC has in no way taken this as cause for resting on its laurels; it continues to embrace the new paradigm for ecologicallyfriendly petroleum products set by the standards of the world’smost advanced countries in their pursuit of ever higher product quality. Similarly in the wider energy field, the company will promote energy resource integration, upgrade its natural gas storage and transport capacity to facilitate greater use of lowcarbon energy and lend stronger support to the application of R&D-based green energy technologies – incidentally creating a green corporate image for itself in the process of helping builda low-carbon homeland for Taiwan's people.


Since the enactment of the Environmental Education Act in 2011, CPC has energetically promoted and practised ecologyand environment-related education and similar activities. Its own eco-experiences and teaching are used to popularize the concepts of environmental protection, of cherishing Taiwan's natural resources and of committing to leave a clean environment for the generations that will follow. The company takes the lead in calling on communities to come together on local ecological issues and in showing concernfor local commercial development to be environmentallyfriendly; and also in practical measures like park and forest adoption, supporting garbage clean-ups and marine pollution remediation. In further educational developments, CPC's Taiwan Oil Production Exhibition Hall at Chuhuangkeng in Miaoli County was certified as an environmental education site in August 2017. It is the only oil production educational site in Taiwan and itfunctions as a high-level environmental education venue for the general public, special interest groups, schools and government agencies. The Exhibition Hall has reinvigorated Chuhuangkeng, the site of a former producing oilwell, and it is also considered part of the Company's contribution towards a sustainable environment. Another company-developed environmental education site is the CPC Kaohsiung Refinery Environmental Education Classroom, which was approved on January 22, 2018 and began to be used after its inauguration on June 8.


CPC cares about its home country and is passionate about protecting its environment. In that cause it will strive to raise its game by deploying the latest in pollution-control technology, systematizing its processes for higher efficiency and greater added-value, investing in the circular economy and promoting waste recycling – all in the pursuit of sustainability in its operations and the sharing of good health and prosperity with the national community.


CPC CLEANS UP: GROUNDWATER AND SOIL REMEDIATION Since the promulgation of the Soil and Groundwater Pollution Remediation Act by the administration of President Chen Shui- Bian in 2000, the EPA has several times announced the Soil and Groundwater Pollution Remediation Act Enforcement Rules, subsidiary legislation and related control standards. Many CPC

plant locations have been listed as pollution response sites, as pollution control sites or pollution remediation sites. The appropriate and respective pollution response, control and remediation plans have been proposed and the company has implemented the related soil and groundwater pollution surveys and pollution remediation measures in accordance with the EPA regulations. CPC currently has 4 listed response sites, 23 listed control sites, and 5 listed remediation sites while remediation has been completed at 25 sites in recent years.


CPC's Kaohsiung Port Terminal site was leased by the company from the Port of Kaohsiung and used for loading and unloading oil cargoes until operations were suspended in 1996. The Environmental Protection Agency (EPA) listed it as a soil control site on December 23, 2015 and the control plan subsequently proposed by the company was approved by the Agency on November 4, 2016. Over 105,000 tons of gravel have beenlifted from the site and stored outside at two locations to await remediation. The greater part has now been fully cleared and some has been returned to the site; the work of remediation goes on and the company aims to finish it as quickly as possible so that the previously imposed controls can be lifted.


CPC's Kaohsiung Refinery ceased working at the end of November 2015. As it was built a long time ago and operated for many years, almost all of the soil and groundwater across its total area have been listed as contaminated sites. The company is dismantling structures above ground - including workshops, process plant, pipelines and related facilities - and also removing pipelines from two meters beneath the ground. In addition, gas pumping/injection pollution control technology is being deployed as also is strengthening the downstream gas injection interception system to prevent pollutants from flowing out of the site. The natural flow of groundwater frm upstream to downstream will be incorporated into the process. The overall remediation process will take 17 years and the plans call for the work to be carried out across separate areas in discrete phases.