Water Policy

In the face of the intensifying challenges of global climate change and extreme weather events (such as droughts and intense short-term rainfall), access to and management of water resources have become key issues for corporate sustainability. Simplo Technology upholds the original intention of fulfilling corporate social responsibility and addressing the global issue of water scarcity. It aims to enhance water stewardship resilience under climate change, improving its response and adaptation capabilities in the face of water stress. To strengthen operational resilience under climate change, Simplo Technology officially released the Water Policy in 2024 to enhance the Company's risk control in water stewardship and sustainability performance.
 

Water resource management target

  • Reduce water consumption intensity by 20% by 2030 from a 2021 base year.
  • Current status of target achievement: Water intensity (million liters/hundreds of million NTD revenue) decreased by 18.18% in 2024 compared to 2021.

Water Resource Management Implementation Results

Simplo Group does not use water for manufacturing, but mainly for the domestic use of employees in the factory. Water withdrawals and discharge are following local government regulations, and all waste water is piped and discharged into the sewer system designated by the municipal government for treatment. There is no interaction of shared water resources. The company regularly tracks water consumption, and regularly entrusts testing units to monitor the discharge of water bodies in the factory area, all of which compliance with local discharge standards and have no impact on the local environment.
 

Water Risk Assessment

Simplo Technology adopts the World Resources Institute's (WRI) water risk assessment tool (Aqueduct Water Risk Atlas) to regularly evaluate the water risk indicator levels of the regions where its production sites are located. This tool assesses overall water risks, including water stress, riverine flood risk pressures, regulatory and reputational risks, among others. If the overall water risk indicator is high (3-4), the site is determined to be in a high water risk area.

According to the evaluation results of 2024, only the production site of Simplo (Changshu) (including Huapu) is located in a high-risk area. However, as the production and manufacturing process does not require water resources and mainly involves domestic water use, the impact is minimal. Nevertheless, water-saving actions will still be promoted to reduce water consumption, while enhancing resilience against water resource shortages.
 
Site Source Water body Risk level

Simplo (Taiwan)

Dahan River

Beisei River

Low - Medium (1-2)

Simplo (Chongqing)

Yangtze River

Liangtan River

Low – Medium (1-2)

Simplo (Changshu) and Huapu

Yangtze River

Baimao River

High (3-4)
Note: Water risk are identified through the World Resources Institute's Aqueduct Water Risk Atlas.
 

Water Withdrawals

Year 2021 2022 2023 2024

Water withdrawal (million liters)

522.47

482.50

386.25

360.05

Water discharge (million liters)

367.57

335.90

270.44

247.95

Water consumption (million liters)

154.90

146.59

115.81

112.1

Water recycling (million liters)

52.67

43.43

38.47

43.00

Water recycling rate (%)

9.16

8.26

9.06

10.67

Water intensity (million liters/ employees)

0.055

0.076

0.068

0.073

Water intensity (million liters/ hundreds of million NTD revenue)

0.55

0.50

0.46

0.45
Note:
1. Water withdrawal = water discharge + water consumption.
2. Water recycling rate = water recycling / (water withdrawal + water recycling) * 100%
3. Water intensity = water withdrawal / number of employees at the end of 2024.
4. Water withdrawal is measured and water discharge is estimated.

Water Saving Measures

  • The faucets are gradually changed to sensor faucets (Simplo Chongqing)

  • The toilet flushing system was changed to segmented flushing (Simplo Chongqing)

  • Condensed water recycling (Simplo Chongqing)

  • Cooling water tower and process water recycling (Simplo Chongqing)

  • Reduce the water pressure of the faucet to save water

  • Promote colleagues to save water
     

Water Management (Simplo Chongqing)

  • The type of wastewater is domestic wastewater, no production wastewater. The generated domestic sewage enters the biochemical pool for pretreatment. After reaching the third-level discharge standard of the "Integrated Wastewater Discharge Standard", it is connected to the park's municipal sewage pipe network.
  • Qualified testing units are regularly entrusted every year to monitor the quality of employees' domestic sewage and rainwater discharge. Monitoring indicators include pH value, suspended solids, chemical oxygen demand, etc.
  • In accordance with the requirements of relevant environmental laws and regulations, the rainwater and sewage system in the factory area is diverted, and the discharge status is regularly inspected to avoid overflow.