Friendly Natural Ecology-ESG Sustainability, Taiwan International Ports Corporation, Ltd.

Governance Structure for Nature-Related Issues

TIPC’s Board of Directors serves as the Company’s highest governing body and oversees sustainability-related matters through dedicated sustainable development committees and the Sustainable Development Executive Office, ensuring cross-functional collaboration and effective management of sustainability-related issues. Details of TIPC’s sustainability governance framework are provided in 2025 ESG Rpeort Section 1.1.2, “Sustainability Governance Structure”. Nature- and biodiversity-related issues are incorporated into this governance framework. Given that the Company’s principal business activities include engineering and construction projects, port and terminal operations, and wharf maintenance, all of which may affect project sites and the surrounding environment, TIPC will continue to identify and assess nature- and biodiversity-related issues associated with its operations. The Company will also clearly define responsible units and implementation mechanisms to support effective management and oversight.

Governance Level	Responsible Unit	Nature-Related Roles and Responsibilities
Decision-making advisory	The Sustainable Development Steering Committee	Review and approve the corporate sustainability vision, strategic goals, and implementation plans, review and approve the annual Sustainability Report, deliberate and formulate strategies for other initiatives relevant to sustainable development
Planning and promotion	the Sustainable Development Executive Committee	Coordinates and promotes sustainability initiatives across departments, integrates resources from various units, monitors implementation progress and performance, and regularly reports results to the Board of Directors.
Planning and promotion	the Sustainable Development Executive Office	Consolidates data from all units and manages sustainability-related projects; facilitates cross-departmental communication, employee training, and external disclosures.
Execution	Nature and Biodiversity Responsible Units Environmental Sustainability Sustainable Development and Construction	Advances nature-related assessments, risks, opportunities, and action plans in accordance with the LEAP assessment framework; integrates ecological surveys, conservation and restoration measures, and monitoring outcomes associated with port engineering and operational activities.

Governance Structure for Nature-Related Issues

Identification of Nature-Related Risks and Opportunities

TIPC applies the LEAP framework (Locate, Evaluate, Assess, and Prepare), recommended by the Taskforce on Nature-related Financial Disclosures (TNFD), to systematically identify its dependencies and impacts on natural capital. The Company also draws on the World Economic Forum’s (WEF) perspective on the port industry’s value chain and its upstream and downstream impacts to enhance the comparability and traceability of its disclosures and their applicability to governance.

Port industry’s value chain and its upstream and downstream impacts

Locate: Identify Priority Operational Areas, and Nature-Related Hotspots

The Locate phase focuses on defining the scope of the assessment, identifying priority operational areas, and identifying potentially ecologically sensitive areas and nature-related hotspots. The Company conducts relevant activities in accordance with the Environmental Impact Assessment Act and the TIPC Operating Manual for Implementation of Directions for Port and Harbor Project Ecological Inspection and integrates environmental impact assessment findings, existing ecological survey results, information on protected species (e.g., IUCN data), and relevant geographic information system (GIS) data. Going forward, assessment areas will be further delineated by port cluster and project type (e.g., land reclamation, dredging, and expansion projects), with assessment boundaries defined using geospatial coordinates and buffer distances to improve the consistency and accuracy of hotspot identification. The results will provide a basis for evaluating nature-related dependencies, impacts, risks, and opportunities in the subsequent Evaluate and Assess phases.

Ecological Audit

As most port and seawall projects involve changes to coastlines and landforms, project designs consider not only operational and industrial needs but also ecological compensation measures tailored to local conditions to support biodiversity. In accordance with the “Operating Manual for Implementation of Directions for Port and Harbor Project Ecological Inspection,” each branch commissions professional organizations, experts, or scholars to assess potential ecological and environmental conservation issues and conduct ecological self-assessments of developed sites or existing structures within the project area. Information on TIPC’s ecological inspections is available on the Company’s official website under “Ecological Inspection.”

Ecological Survey

For port construction projects, the Company consistently conducts comprehensive assessments to minimize environmental impacts during project development and subsequent operations. Ongoing monitoring of ecological and habitat conditions helps ensure that operational activities do not adversely affect the environment while supporting the health and terrestrial ecosystems. Based on the results of relevant surveys and assessments, the Company’s operations have not been found to have significant impacts on biodiversity or adverse effects on the surrounding environment and species.

Port	Areas located in, adjacent to, or encompassing protected areas	Protected areas name	Protecting species on the IUCN Red List
Port of Taichung	Yes	Important habitats for the Indo-Pacific Humpback Dolphin in the wild	Indo-Pacific Humpback Dolphin (Critically Endangered)
Port of Kaohsiung	No	South Star Wild Bird Reserve	No
Port of Taipei	Yes	Port of Taipei North Breakwater Wetland (located near Port of Taipei)	No
Port of Suao	No	Port of Suao Tofu Cape Coral Conservation Area	No
Hualien Port	No	Qilaibi Coast on the north side of Hualien Port (south side of Qixingtan Beach)	Formosan Flying Fox (Vulnerable)

Evaluate: Evaluate the Dependencies and Pressures

The Company uses the ENCORE tool, jointly developed by UNEP-WCMC and UNEP FI, to assess nature-related dependencies and pressure drivers. Using the commonly applied port-sector activity category “warehousing and support activities for transportation” as a starting point, the Company identifies material dependencies and conducts a preliminary assessment of the extent to which port operations depend on ecosystem services, while also mapping potential pressure drivers and impact pathways. The results are consolidated into an inventory (See 2025 ESG Report Section 4.3.2 Identification of Nature-Related Risks and Opportunities) and linked to existing monitoring indicators, providing a basis for subsequent assessments of nature-related risks and opportunities and the development of appropriate management responses.

Nature-Related Dependencies of the Company’s Operations

Beyond core cargo transportation, vessel berthing, and terminal handling services, port operations also encompass tourism and recreation, port landscape maintenance, environmental stability, and operational safety and resilience. Accordingly, the Company has conducted a preliminary assessment of its port construction, vessel services, port support operations, and tourism-related business activities and identified key nature-related dependencies across three major categories: “Terrestrial Realms,” “Marine Realms,” and “Ecosystem Services.”

Nature-Related Impact Drivers of the Company’s Operations

With respect to vessel operations and port construction, activities such as vessel movements and ballast water discharge may increase the risk of introducing invasive alien species into port waters. In addition, port construction activities, including land reclamation and pier engineering projects, may result in nature-related impacts such as habitat modification. The Company has conducted a preliminary assessment and identified key nature-related impact drivers in two categories: “Invasive Alien Species” and “Habitat Modification.”

Inventory of Operational Activities and Indicators

To effectively manage nature-related impacts, the Company has conducted a preliminary inventory of port operational activities associated with various impact drivers and their corresponding indicators. The results will provide a basis for establishing future monitoring and management mechanisms for nature-related impacts.

Impact Drivers and Nature-Related Indicators Associated with TIPC Economic Activities
Impact Drivers	Description of Port-Related Nature Impacts	Existing / Available Indicators
Habitat Modification	Port construction and vessel operations may alter marine and coastal habitats or interfere with species movement pathways, including activities such as dredging, channel deepening, land reclamation, and seawall/breakwater construction.	Navigation channel siltation rate Frequency of sightings of the Indo-Pacific humpbacked dolphin Wetland area
Pollution	Operational and service activities may create pressures on aquatic environments and contribute to environmental pollution, such as wastewater and oily-water discharges, increased pollution within port areas, and marine debris/litter generation.	Water quality (e.g., suspended solids (SS), chemical oxygen demand (COD), oil contamination/oil content) Air Quality index, AQI Waste generation statistics Pollution incident frequency
Climate Change	Greenhouse gas emissions generated by operational activities contribute to climate change, including emissions from vessels and operational equipment.	Air pollution and GHG emissions
Resource Utilization	Operational activities and construction projects may consume natural resources or utilize recycled materials. For example, water withdrawals may affect downstream water availability.	Water supply Electricity utilization rate Proportion of recycled fill material used (minimum 10%)
Invasive Alien Species	The introduction and spread of invasive alien species may occur through pathways such as vessel ballast water discharge and hull fouling.	Coral cover area

Access

TIPC has progressively implemented the Locate and Evaluate phases of the TNFD LEAP approach and consolidated information on nature-related dependencies, risks, and opportunities relevant to its operations. Going forward, the Company will continue to collect and update localized data and supporting information across its port clusters to further develop its inventory of nature-related operational risks and opportunities. The Company will also progressively advance to the Assess and Prepare phases of the LEAP approach, strengthening the development of risk management measures, action plans, and related metrics and targets.

Ecological Conservation and Restoration

The Company is committed to developing sustainable ports through ecological conservation and landscape greening initiatives across both marine and terrestrial environments. By maintaining coastal vegetation and beach ecosystems and implementing afforestation and tree-planting programs to enhance carbon sequestration, the Company advances carbon reduction efforts while supporting biodiversity conservation. By 2025, the total green belt area across all port zones had reached 826.69 hectares, accounting for 12.6% of the total port area. As part of its efforts to preserve green landscapes within port areas, the Company planted or replaced a total of 91,067 trees in 2025 and regularly conducted tree pruning and weed removal to maintain landscape quality and ecological integrity.

Port	Focus on Natural Resources	Mitigation hierarchy	Actions related to ecological conservation
Port of Taichung	Indo-Pacific humpbacked dolphin	Minimization	TIPC conducts environmental impact assessments and applies for development permits while commissioning professional organizations to conduct ecological and environmental surveys of the Indo-Pacific humpback dolphin population in the waters surrounding the Port of Taichung and to develop conservation plans. In addition, relevant dolphin conservation measures are formulated in conjunction with the environmental impact assessment for the port expansion project.
Port of Taichung	Planting Melia azedarach and Hibiscus tiliaceus	Restoration	In 2025, the Taichung Branch implemented a tree-planting project in the Port of Taichung Conservation Forest, planting approximately 2,000 trees, including Melia azedarach and Hibiscus tiliaceus, across an area of approximately 0.9 hectares.
Port of Kaohsiung	Common kestrel, peregrine falcon, black-winged kite, crested honey buzzard, crested goshawk, japanese sparrowhawk, chinese sparrowhawk, brown shrike, and oriental pratincole.	Avoidance	The South Star Land Project Area preserves the windbreak forests and surrounding green spaces that serve as important stopover sites for migratory birds. The area is landscaped using native species, and measures such as setting up green buffer zones and restricting vehicle speeds are implemented The South Star Land Project Area preserves windbreak forests and surrounding green spaces that serve as important stopover habitats for migratory birds. The area is landscaped with native plant species, and measures such as establishing green buffer zones and restricting vehicle speeds are implemented to protect local habitats and wildlife. In 2025, four avian ecological surveys were conducted. Most recorded species were common resident birds, along with some migratory and introduced species. The surveys also documented several protected species, including Category II and Category III species.
Port of Taipei	Natural wetland	Avoidance	The wetland covers an area of 357 hectares and is classified as a coastal natural wetland and legally designated coastal protection area.
Port of Suao	Coral reef	Minimization	Tofu Cape at the Port of Suao has been designated by the Yilan County Government as a non-motorized sailboat recreation area. The coral habitat covers approximately 1 hectare in the waters surrounding the Port of Suao Signal Tower. Coral harvesting and other activities that may damage coral habitats are strictly prohibited.
Port of Hualien	Formosan Flying Fox	Restoration	Since 2023, the Company has collaborated with county and city governments, local communities, and Hualien Natural Education & Ecology Consultant Ltd. to monitor the Formosan flying fox (Pteropus dasymallus formosus). Since 2024, food plants for the Formosan flying fox, including the Formosan nato tree (Palaquium formosanum), Alexandrian laurel (Calophyllum inophyllum), Fukugi tree (Garcinia subelliptica), and sea almond (Terminalia catappa), have been planted. In addition, a Formosan flying fox habitat restoration area covering approximately 0.63 hectares has been established on the western side of Hualien Port, south of Qixingtan Beach.
Port of Anping	Phoenix hanceana Naudin, Drypetes littoralis) , and Tournefortia argentea L.f.	Minimization	In 2025, the Port of Anping launched an afforestation and landscaping initiative in designated areas of Yuguang Island Beach to improve the port environment, protect the beach, expand green space, and provide visitors with a high-quality recreational environment. The planting plan was designed to provide both windbreak and sand stabilization functions. By mid-March 2025, planting had been completed, with 83 trees, 4,500 shrubs, and 7,000 groundcover plants planted across a total greened area of approximately 0.6 hectares.
Note: The Company implements measures in accordance with the mitigation hierarchy (ordered sequentially as Avoidance, Minimization, Restoration, and Offset) to mitigate impacts on biodiversity and achieve a nature-positive outcome.

Chinese Sparrowhawk

Crested Honey Buzzard

Lesser Sparrow Hawk

Little Egret