CORPORATE SUSTAINABILITY RESPONSIBILITY
企業永續責任
Environmental Actions
Biodiversity and Natural Capital Commitment
A Sustainability Vision Rooted in Local Coexistence
- A Sustainability Vision Rooted in Local Coexistence
HDRE recognizes biodiversity and natural capital as essential foundations for long-term resilience and sustainable development. Through renewable energy development, ecological conservation, forest restoration, and environmental education, the Company continues to reduce potential impacts on the natural environment while creating positive environmental and social value.
In project development and operations, HDRE incorporates ecological considerations into site planning, environmental assessment, and long-term monitoring, and continues to strengthen collaboration with local communities and professional organizations to support the coexistence of business development, local livelihoods, and nature.
- Biodiversity Protection Commitment
Amid accelerating climate change, biodiversity loss, habitat degradation, and growing pressure on natural resources, HDRE regards natural capital as fundamental to corporate resilience and long-term value creation. In alignment with the TNFD framework, the Kunming-Montreal Global Biodiversity Framework, and the UN Sustainable Development Goals (SDGs), we:- Apply the TNFD framework and Biodiversity Policy to strengthen nature-related governance and disclosure.
- Assess nature-related dependencies, impacts, risks, and opportunities and develop corresponding management actions.
- Continue ecological conservation, restoration, and nature-positive initiatives while improving the transparency of nature-related disclosures.
- Our Actions
In 2024, Chairman Edward Hsieh signed and approved the Biodiversity Policy, under which HDRE commits to avoiding development in areas recognized domestically or internationally as rich in biodiversity. The Company upholds sustainable operations and harmony with nature, with no net deforestation and no net loss as management objectives, and aims to achieve a Net Positive Impact (NPI) on biodiversity by 2050.
In 2025, HDRE continued implementing ecological conservation, forest restoration, biodiversity-friendly agriculture, environmental education, and long-term ecological monitoring across its operations and collaborative projects. - Risk Assessment and Actions
- Nature-related Assessment Method: The LEAP Approach
HD Renewable Energy adopts the TNFD-aligned LEAP approach to assess the interaction between our business operations and the natural environment. This framework guides our governance, strategy, and disclosure processes. The four steps—Locate, Evaluate, Assess, and Prepare—are outlined as follows:
- Nature-related Assessment Method: The LEAP Approach
| Locate Identify key business activity locations |
HDRE identifies key business activity locations and reviews the distribution of operations and assets across the value chain and geographic regions. The Company assesses operational characteristics, interactions with the natural environment, and the ecological importance of operating locations to determine priority areas for nature-related assessment. |
| Evaluate Assess dependencies and impacts across key energy value chain activities |
HDRE assesses the dependencies and impacts of business activities on the natural environment, evaluates vulnerability to nature-related changes, and strengthens the protection of ecosystem services. Key evaluation components include: • Identifying business activity locations, environmental assets, and ecosystem services • Assessing impacts on the natural environment and surrounding communities • Analyzing impact drivers and identifying priority issues for management |
| Assess Analyze nature-related risks and opportunities |
HDRE assesses nature-related dependencies, impacts, risks, and opportunities. Key risks include climate change, resource scarcity, and ecosystem degradation, while opportunities include growing renewable energy demand and enhanced ecological value. Nature-related considerations are incorporated into project design and mitigation measures, including water resource management and biodiversity-friendly practices. |
| Prepare Develop strategies and disclose assessment results |
Based on assessment results, HDRE continues to refine management measures and future strategies, disclose nature-related risks and management outcomes through TNFD reporting, and advance ecological conservation, water resource management, and biodiversity-friendly practices. The Company will continue reviewing nature-related strategies in response to environmental and market changes. |
Assessment of Interactions Between Renewable Energy Operations and the Natural Environment
HDRE uses the ENCORE (Exploring Natural Capital Opportunities, Risks and Exposure) tool to assess nature-related dependencies and impacts and identify natural capital risks. HDRE’s businesses—including renewable energy project development, green electricity services, aquaculture, and aquavoltaics operations—are closely linked to land use, water resources, and natural ecosystems. The assessment results support nature-related strategy planning and risk management.
- 2025 Site Biodiversity Impact Analysis
HDRE reviewed its operating locations against relevant environmental regulations and protected-area classifications to identify locations requiring enhanced biodiversity management.
| Themes | Assessment Coverage | 2025 Key Finding |
|---|---|---|
| Description |
19 HDRE operating locations were assessed against nature reserves, nature protection areas, wildlife protection areas and critical habitats, national parks, soil and water pollution control areas, and National Green Network priority areas. |
None of the 19 operating locations are situated within nature reserves, wildlife protection areas, or critical habitats. Three locations in Tainan and Penghu are within National Green Network priority areas; the Tainan location includes an ecological conservation area of approximately 6 hectares. |
- Nature-Related Dependencies and Impacts
HDRE systematically evaluates the dependencies and impacts of its operating locations on biodiversity and the natural environment. Recognizing the industry’s dependence on nature, the Company applies the Environmental and Social Screening Mechanism for Solar Aquavoltaics to assess ecological and socioeconomic impacts and develop corresponding mitigation measures.
HDRE manages nature-related impacts through environmental assessment, sensitive-area management, long-term ecological monitoring, and site-specific mitigation measures. The Company applies an avoid, reduce, restore, and regenerate framework to mitigate nature-related risks and enhance positive ecological outcomes.
- Natural and Biodiversity Risk Matrix Analysis
In 2025, HDRE incorporated external expert input and cross-functional interview findings to refine its assessment of nature, biodiversity, and natural capital issues. By evaluating the likelihood and impact of identified risks and opportunities, HDRE developed a Natural and Biodiversity Risk Matrix to support management strategies, target setting, resource allocation, and operational resilience.
Highlight Projects
HDRE references the TNFD framework and ENCORE tool to identify key ecosystem services, including carbon sequestration, hydrological regulation, and habitat conservation, and evaluates them in conjunction with project-site characteristics. Key beneficiaries include local communities, agricultural and fisheries workers, and ecological species. Through ecological conservation and environmental education initiatives, HDRE promotes the coexistence of people and nature. Going forward, the Company will continue strengthening stakeholder engagement to better identify and assess ecosystem service impacts.
Biodiversity Management and Action Plan
Against the backdrop of climate change and accelerating environmental change, HDRE remains committed to sustainable development. Since adopting the Taskforce on Nature-related Financial Disclosures (TNFD) framework in 2024, the Company has integrated nature-related risk and opportunity management into operations and disclosure processes. Through the identification, assessment, and disclosure of nature-related risks and opportunities, HDRE continues to strengthen the management of biodiversity, natural resources, and ecosystem services and advance toward its long-term goal of achieving a biodiversity Net Positive Impact by 2050.
| TNFD Four Core Pillars |
Key Execution Items | Responsible Units |
|---|---|---|
| Governance |
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| Strategy |
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| Risk Management |
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| Metrics and Targets |
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Natural Capital Management Process
HDRE has established a systematic natural capital management process consisting of four key steps:
| Natural Capital Management Procedure | |||
|---|---|---|---|
| Risk and Opportunity Identification |
Impact Assessment | Action Plan Development |
Metrics and Target Planning |
| Identify nature- and biodiversity-related risks and opportunities with reference to TNFD guidance, international standards, and benchmarking of peer companies. |
Assess likelihood and impact through external expert input and cross-functional interviews, followed by matrix analysis to identify material nature-related issues. |
Develop management actions based on the avoid, reduce, restore, and regenerate framework to strengthen resilience and enhance positive ecological outcomes. |
Establish and progressively refine quantitative baselines, indicators, and targets, with regular tracking and review of biodiversity and natural-capital performance. |
Biodiversity Policy
