Following the Taskforce on Nature-related Financial Disclosures (TNFD) initiative, Asia Cement has established a governance framework for nature-related matters. The Board’s Corporate Sustainability Committee reviews and oversees biodiversity-related work. The Corporate Sustainability Implementation Committee assesses biodiversity risks and opportunities, plans and implements related initiatives, and regularly reports progress to the Corporate Sustainability Committee.

Biodiversity Policy

Asia Cement’s long-term direction is to achieve a Net Positive Impact on biodiversity. It applies the approaches of avoidance, reduction, restoration, off-site compensation and monitoring, and works with value chain partners to fulfill the following commitments:

1. Conduct Environmental and Social Impact Assessments (ESIA) before establishing new extraction sites.
2. Develop quarry environmental maintenance plans and closure plans for all limestone extraction sites. Implement reclamation, rehabilitation and disaster prevention measures on mined land after its use, in accordance with the relevant regulations.
3. Undertake biodiversity risk assessments following the Taskforce on Nature-related Financial Disclosures (TNFD) guidelines.
4. Establish a Biodiversity Management Plan (BMP) for extraction sites with high biodiversity value. Simultaneously conduct ecological restoration during extraction activities, enhancing biodiversity value through nature-based solutions. Annually disclose rehabilitation areas and other biodiversity information in accordance with relevant guidelines provided by Global Cement and Concrete Association (GCCA).
5. Commit to no deforestation, strictly adhere to local regulations, limit extraction to permissible areas and ensure 100% no logging outside regulated areas to prevent damage to pristine forests.
6. Introduce circular economy principles in the cement production process, utilizing practices such as alternative fuels, raw materials, waste heat power generation, green energy development and carbon capture technologies to reduce natural resource consumption and minimize negative impacts on environmental ecology and biodiversity.

Impact Assessment and Stakeholder Engagement

Mineral extraction can temporarily expose the ground surface. Asia Cement monitors mine safety, controls blasting vibration and carries out ecological restoration to reduce impacts on nearby residents and the environment.

If a new extraction site is planned, biodiversity and environmental impacts will be assessed before development. The Asia Cement Service Center and stakeholder-engagement mechanisms provide channels for communication, with relevant information disclosed through the Sustainability Report and other platforms.

 Sustainable Mine Investment Costs

In 2025, Asia Cement’s Hualien Plant paid approximately NT$860 million in taxes, including approximately NT$300 million in mine-related direct taxes. Mineral rights royalties and mining-rights fees amounted to NT$18.43 million. Expenditure on regular monitoring and surveys of blasting vibration, drainage, geology and the environment totaled NT$14.92 million. Over the past four years, mine-related direct taxes averaged NT$980,000 per hectare mined, while monitoring, survey and greening expenses averaged NT$640,000 per hectare mined.