Chapter 3 Green Homeland

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Green Earth Economic activities of the human race not only create an impact on the ecosystem of the earth, but also endanger the environment that human inhabits. In light of global warming and climate change, we must work together to take action for mitigation and adaptation. As the landmark of Taiwan, TAIPEI 101 is also a corporate citizen of the world that sets the paradigm in the management of skyscrapers. Therefore, it has to set an example in environmental protection and treasuring resources of the earth. The company wishes to build a consensus and joint effort with all parties concerned and realize the concepts of sustainable development together.

Commitments to Mother Earth TAIPEI 101 is well aware that the building and the operation in itself creates an environmental impact. We not only exercise two of the six “TAIPEI 101” characteristics – Innovation and Environment – to aggressively support environmental advocacy, but also continue to improve energy efficiency, water usage, and waste recycling in the office tower, shopping mall, and the observatory. In 1997, the building design of TAIPEI 101 already factored in environmental factors, incorporating measures such as the double low-e glass curtain wall to reduce heat penetration and A/C energy use in the summer, rain water recovery and storage system, garbage collection chute system that saves lift ride in delivering waste, and the advanced “Energy Management and Control System” (EMCS). Right from the beginning of operations, we have taken environmental protection as a priority and we remain in compliance with all regulations. In 2013, we were not fined for any violation of environmental regulations.

3.1

TAIPEI 101’s Six Characteristics

Based on the idea of sustainable management, TAIPEI 101 implements its environmental protection policies and pursues advancement in equipment and technology. At the same time as growing business, TAIPEI 101 will do its best to protect the resources of the earth and the natural environment. This is our commitment to Mother Earth. 56

The plan of the Corporate Sustainable Development Team In 2013, departments involved in public area maintenance, green house gas audits, and carbon reduction measures include the environment managements teams of Tower Property Management and Mall Property Management Dept. and power team of Engineering Operation Management Dept... In the future, the Environmental Sustainability team under the Corporate Sustainable Development Team will continue to enforce environmental protection measures. It will draft sustainable development policies and assess risks, taking into consideration climate change issues and the core value of TAIPEI 101.

Environmental Protection Policy ◆◆ Green On Project Built on the foundation of successfully acquiring various certifications, we have initiated the Green On Project. The seven major dimensions of the project are as follows:

3.2

Seven major dimensions of Green On Project

We also create dedicated web pages to introduce this project and forthcoming events to the general public. Green On website: http://www.taipei101greenon.com.tw/

◆◆ Earth Hour International Environmental Protection Campaign Since 2009, TAIPEI 101 participates in the event on its own initiative to turn off the lights for one hour around the world initiated by the World Wildlife Fund (WWF). The building turns off the exterior lighting for one hour as famous landmarks around the world, in the hope that other buildings and the general public will respond to the “Earth Hour” campaign together and be aware of carbon reduction, energy savings, and climate change issues.

Taiwan Diamond Level Green Building Certification

TAIPEI 101 received the “Diamond Level” certification awarded by the Architecture and Building Research Institute, Ministry of Interior for the Taiwan green building – old building improvement category in March 2013. This certification is an evaluation system and certification regulation in the evaluation of green buildings in terms of “Ecology, Energy Saving, Waste Reduction, and Health” (EEWH). TAIPEI 101 took the “Carbon Reduction Result Evaluation Method” to apply for the evaluation. The company also performed an evaluation on the improvement results of “air conditioning technology” and “illumination technology.” The consultancy fee totaled NT$270,000. Achieving this Diamond level is a further recognition for the effort of TAIPEI 101 in terms of green building and environmental protection.

Energy Savings and Carbon Reduction Action Emblem

3.3

Earth Hour International Environmental Protection Campaign

Recognition for Environmental Protection LEED Platinum-Level Green Building Certification TAIPEI 101 was certified by USGBC as LEED for Existing Buildings: Operations and Maintenance (LEED EM:OB) Platinum level in 2011 and became the tallest green building in the world. This is the pride of TAIPEI 101 and Taiwan.

3.4

TAIPEI 101 devotes resources to energy savings and carbon reduction in actions such as improving lighting fixture, air conditioning and water equipment, recycling, and greening the environment. At the same time, the building provides a comfortable ambience. We received the “Energy Conservation and Carbon Reduction Action Emblem - Merit Award” from the Environmental Protection Administration, Executive Yuan, in December 2013, which highlights the results our energy saving and carbon reduction. TAIPEI 101 Tower is to be the paradigm for other buildings.

LEED EM:OB Platinum certification Logo

Because the company was not aware of this green building evaluation system when TAIPEI 101 was designed, it is not like the new buildings that have adopted LEED standards at the time of design. The evaluation standard for Platinum level certification of existing buildings is extremely stringent. To fulfill the commitment to protect the environment at a high standard, for a period of more than two years, TAIPEI 101 executed improvement projects on more than one hundred pieces of equipment, drafted green policies and measures, with the help of employees and tenants of the office tower to finally receive the certification. Earning the LEED certification is not the end. We will continue to enforce the green actions adopted through the course of certification and plan to be re-certified in 2016.

3.5

Taiwan Diamond Level Green Building Certification 3.6

Energy Conservation and Carbon Reduction Action Emblem

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Environmental Performance Energy Usage Efficiency TAIPEI 101 is a mixed use tall building with office, retail and tourism components. Altogether, there are 11,663 employees of companies that rent space from TAIPEI 101 and, on average, 59,274 customers and tourists enter and exit TAIPEI 101. Therefore, the indoor temperature, lighting, elevator operation, and other equipment have to function normally to maintain the smooth operation of the complex. The operation of a building consumes a lot of energy. For this reason, energy is a large component in our operating expenses. The adjustment of the electricity rate and the uncertainty of Taiwan’s power supply is a potential business risk to us. To ensure that our company can deal with this type of risk, we perform monitoring, measurement, and analysis on building energy efficiency every year and work hard to improve energy efficiency. Total power usage in 2013 was 84.73 million kWh. The office tower, the shopping mall, and the parking lot used 47.37%, 45.83% and 6.8% respectively. For office tower, office tenants and restaurant tenants are responsible for their own power consumption, and they used 33.89% of the total tower power usage. For shopping mall, retailers and restaurant tenants used 42.32% of total mall power usage. Overall, 64.39% of the power usage in 2013 was under the direct control of our company. Our carbon emission base year is 2009. Judging from overall power usage, in 2013, the office tower’s power usage declined by 2.49% from the base year of 2009; the shopping mall 11.58%; parking lot 4.08%. Overall, power usage declined by 6.98% from base year. However, between 2009 and 2013, rental floor space of the office tower increased by 17.71%, and the number of tenant’s employees increased by 19.61% in the same period. When calculated with the average energy usage intensity of leased area, the figure in 2013 declined by 17.71%, compared to that of the base year. When calculated with the average energy usage intensity of tenant’s employees, the figure in 2013 declined by 18.48%, compared to that of the base year. The usable floor area of the shopping mall covers retail space for rent, hallway, elevators, and other public access areas. When calculated with the average energy usage intensity of the usable floor area, the figure in 2013 declined by 11.58%, compared to that of the base year.

3.7

Power Usage of Office Tower, Shopping Mall, and Parking Lot

Office Tower

3.8

Office Tower Power Usage Breakdown

Office Tower

3.9

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Office Tower Leased Area Energy Usage Intensity

12. (kWh/Year/Leased Floor Area)

Office Tower

3.10 Office Tower Tenants’ Employee Energy Usage Intensity

Shopping Mall

3.11 Shopping Mall Power Usage Breakdown

Shopping Mall

3.12 Shopping Mall Usable Floor Area Energy Usage Intensity

Water Resource Consumption

We monitor water usage every year to improve water resource usage efficiency. Total volume of water used in 2013 was 530,201 metric tons. The office tower used 47.85% of water, while the shopping mall used 52.15%. Overall water usage volume declined by 1.47% from the level of 2012. Judging from the building water usage intensity, while there were more employees of the building’s tenants and visitors to the shopping mall, the building water usage intensity of the office tower and of the shopping mall declined by 4.01% and 1.32%, respectively, indicating that our water usage efficiency significantly increased.

3.13 Total Water Usage in 2013

13. (kWh/Year/ Tenants’ Employee No.) 14. (kWh/Year/Main Building Area). Shopping mall usable floor area includes the area of aisle, elevators.

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Office Tower

3.14 Office Tower Water Usage Breakdown

Shopping Mall

3.15 Shopping Mall Water Usage Breakdown

3.16 Office Tower and Shopping Mall Annual Number of Users

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15. Office tower total water usage/office tower annual number of tenants’ employees 16. Shopping mall total water usage/shopping mall annual number of thousand users

Recycling Waste

TAIPEI 101’s scope of business is managing and providing service to the office tower, shopping mall and the observatory. Therefore, most of the waste comes from daily operation, from tenants, and from fit-out work. The waste that cannot be recycled is sent to the incinerator or landfill. The total volume of recycled waste in 2013 is increased by 32.46% from that of 2012. Some of the waste can be processed and turned into raw material to be reused. Because we see such material as important resources, we have separated them into 25 categories from the source where the waste was generated, so that we can transfer them for reuse and reduce waste.

3.17 Total Waste Weight

3.18 Category, Weight, and Percentage of Recycled Material

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Greenhouse Gas Inventory Beginning from 2011, TAIPEI 101 started taking greenhouse gas inventory. The company compiles a Green House Gas Inventory Report according to ISO 14064-1:2006, and the report is certified by a third party. The sources of our green house gas emission are summarized as follows:

3.19 Green House Gas Emission Source Table

In 2013, the scope of the inventory encompasses the entire range of our company, including the office tower, shopping mall, and the observatory. The emissions from all categories are shown in the graph below. Scope 1 is the emission of direct green house gas, consisting mainly of the combustion of gasoline in business vehicles, the diesel used in the emergency generator, and the refrigerant used in air conditioning systems (R-134a refrigerant). This scope constitutes 0.08% of total emissions, improving from the level of 2012. Scope 2 is indirect emissions, consisting mainly of electricity purchased externally. It is the energy used to power the air conditioning system, public area illumination, the elevators and escalators, and other equipment and systems, but not including the electricity used for operation inside the office space. This scope constitutes 99.92% of total emissions at 28,231.89 metric tons of CO2 equivalent, showing a decline of 7.05% from the level of 2012. Our company does not have data on Scope 3 emissions at this moment. The major source of HFC emission is the air conditioning system, and the figure can be estimated from the addition of R-134a refrigerant into the air conditioning system. Because there was no consumption of refrigerant in 2013, there was no addition, thereby no carbon emissions produced.

3.20 2013 Green House Gas Emission Certificates

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3.21 Scope 1 and Scope 2 Emission

3.22 Comparison Table of Green House Gas Emissions in the Past Three Years

3.23 Ozone Depletion Material Emission

17. Metric Ton CO2-e/Year/Rental Floor Area

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Green Building Since TAIPEI 101 began operation, it has been improving the energy efficiency, saving water resources, and recycling rate. Finally, it became “The World’s Tallest Green Building”. To continue the achievement, TAIPEI 101 set annual environmental goals to continue seeking new improvements. With the joint effort of all employees and tenants’ employees, the company executes all measures to improve environmental performance and create a more eco-friendly and comfortable work environment, as well as to receive the highest economic benefit. Commitment by Tenants After TAIPEI 101 received the Platinum Level LEED certification for existing buildings in 2011, the company continued to manage the environment of the building with stringent regulations to fulfill the commitment of protecting the earth. In total, there were 115 corporate tenants leasing office space as at the end of 2013, and their efforts are needed to maintain the green building. For this reason, we add green rules and regulations to the “Tenants’ Manual” and regulate the fit-out work, cleaning, and the energy and resource management in their day-to-day operations with the manual to comply with green building regulations. ◆◆ Green Fit-out New tenants of the building fit-out their space according to their office layout design. To ensure that their fit-outwork is in compliance with regulations of our building, we use LEED as a framework and incorporate international best practices to draft the “Green Fit-out Handbook”, which requires that tenants prevent noise pollution, maintain indoor air quality, and choose green interior material while they carrying out the work so to reduce impact on the environment. Contractors in violation of fit-out regulations will be fined.

faucets, toilets, and urinals bearing water conservation labels. For tenants with high power usage, we perform electric panel inspection by methods such as infrared inspection, power analyzer measurement, three-phase aggregate load, and electric panel switch contact lockdown to understand the cause of electricity consumption and propose improvement measures.

Building Rain Water Recovery System TAIPEI 101 installs rain water capture systems on platforms every 8 floor above the 34th floor. The system collects rain water and sends it to the large rain water tank on the B5 level. After the rain water is filtered, it is reused as outdoor landscape irrigation water and for washing exterior equipment and surfaces. The system collected 8,402 metric tons of rain water in 2013. Additionally, the company used the collected rain water for the toilets in the shopping mall. The remainder of the waste water is drained to the sewage system of the city according to government regulations.

◆◆ Green Cleaning Many tenants of the building outsource the cleaning of office space to service providers as we do. Therefore, we strongly encourage tenants to request their cleaning service provider adopt the same green cleaning policy as we do, which is using cleaning products and equipment in compliance with environmental regulations. Tenants should be responsible for the separation of waste generated in their areas into recyclable, general waste, and food waste, according to the principle. Waste should be placed in the designated collection containers on each floor. Cleaning staff are responsible for checking the separation of waste and taking waste to the Waste Management Center in the basement. ◆◆ Energy and Water Conservation Measures With the Green On Project, we convey TAIPEI 101’s goal in energy and water conservation to its tenants and the tenants’ employees in the hope that tenants will support green actions together and control the consumption of energy and water resources. Our recommendation in lighting and water conservation includes using energy-efficient lighting fixtures, buying office equipment and appliances with energy-saving and eco-friendly labels, and buying water

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3.24 Rain Water Recovery System – the Drainage

Waste Management

If we use a service lift to transport waste from all the floors to the Waste Management Center in the basement, we would waste a lot of labor and energy. We have had installed a waste collection system to transport not recyclable waste to the Waste Management Center. The waste collection system consists of four sections of gravity driven chutes. At the end of each chute is a shredder that cuts waste into pieces before it is sent to the Waste Management Center in the basement. With such a process, the air and liquid in the waste will be extracted, and the volume of the waste will be compressed to one-third of the original size. Then the waste handling contractor hauls it away. Recyclable waste is sent to the Waste Management Center by service lift. In consideration of sanitation factors and to prevent the decomposition of food from affecting the environment of the building, food waste is first stored in a freezer in the basement and then hauled away by the food waste handling contractor.

Indoor Illumination and Air Conditioning Improvement Measures

I n 2 0 1 3 , TA I P E I 1 0 1 a p p l i e d fo r s u b s i d y f r o m A i r Conditioning System Energy Saving Performance Project of the Energy Bureau, Ministry of Economic Affairs and Industrial and Commercial Energy Efficiency Improvement Project of the Industry Development Bureau, Taipei City Government. We spent NT$25.2 million and NT$3.73 million respectively to improve air conditioning technology and illumination technology. For the project of the Energy Bureau, Ministry of Economic Affairs, we received NT$8.40 million in subsidy, which is used to replace fixed frequency drives with variable frequency motors in air conditioning system so that it functions according to the actual needs as monitored by central monitoring system and reduce energy consumption. We actually saved 2.85 million kWh of power, 47% of energy saving from that equipment change. For the

public area illumination system, we received $710,000 of subsidy from the Industry Development Bureau of the Taipei City Government and used the fund to replace the existing fire safety lighting and PLC overhead lighting fixtures with LED lights. Altogether, 1,459 units of lighting fixtures were replaced, saving 260,000 kWh of power each year at an energy saving ratio of 74%.

Five-Year Energy Conservation Plan

TAIPEI 101 is committed to reducing energy consumption. F o r t h i s p u r p o s e , we d r a f t e d a F i ve - Ye a r E n e r g y Conservation Plan. The company will perform optimization measures on the illumination management system and the air conditioning system in stages. Regarding illumination management, we will periodically analyze the illumination power usage in the mechanical room and parking lot, utilizing sensors, and setting on-off pattern in the parking lot based on business hours. The optimized management for the air conditioning system will supply external fresh air, effectively control the distribution performance of chilled water, and analyze the optimal program.

Curtain Wall Inspection Project In 2013 when the powerful typhoon Soulik hit Taiwan and toppled more than 1,600 trees in Taipei City, the strong wind also damaged part of the exterior wall of TAIPEI 101 Tower. The repair work took almost three months to complete, at a cost of NT$3 million. This taught us a lesson about the force of natural disasters. To respond to the impact brought by climate change, we executed a curtain wall inspection project for the whole building. The inspection came in two phases: The first phase was inspecting the metal sheet wrapping on curtain walls above the 25F. The second phase was inspecting the exterior window frame of the entire building. The inspection cost totaled NT$9.4 million.

3.25 TAIPEI 101 Mall Metro Plaza

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Green Shopping Mall TAIPEI 101 Mall has a good collection of international luxury brands flagship stores and a choice of gourmet restaurants. Customers enjoy access to merchandise and fine dining from around the world. With our faith in sustainable development, we want to reduce the environmental impact to a minimum while we operate a magnificent shopping mall at the same time, so that we can provide a green and healthy shopping environment. Energy and Water Resource Management

In 2013, the shopping mall received a subsidy from Industrial and Commercial Energy Efficiency Improvement Project of the Industry Development Bureau, Taipei City Government. The subsidy was used on improving lighting fixtures in public areas and replacing the less energy-efficient lighting fixtures, such as 924 units of PLC-52W overhead lights and 535 fire safety lights. All of them have been replaced with LED lighting fixtures, and the energy saving ratio is expected to be 74%. Additionally, for the energy saving performance upgrade project, we added variable frequency motors to air conditioning heat pumps and air handling units. The energy saving ratio of related equipment is expected to be 47%. In 2014, the company is planning an energy saving upgrade project that adds variable frequency drives to the shopping mall air conditioning brine pump. The energy saving ratio of related equipment is expected to be 30.01%.

Shopping Mall Restrooms Recognized as Outstanding

To ensure that customers of TAIPEI 101 Mall are always in a pleasant mood while they are shopping, we are raising the bar on the cleanliness and service of public areas year after year. We are increasing the frequency of cleaning, so that the restrooms can remain clean. We are also improving the service quality of the cleaning staff and replenishing toiletries, such as toilet paper and liquid soap. In the future, we are planning to replace ventilation fans in the restrooms to improve the air quality in the restrooms.

In terms of water resource management, because we expect the opening of the MTR line will bring a large number of visitors, water usage in the public restroom will increase. We have a responsibility to reduce water footprint to a minimum. Therefore, the shopping mall directed the rain water collected from the office tower to toilet use in 2013. The expected water saving is 30,000 tons per year.

Recycling With Our Customers To create a friendly and clean shopping environment, we encourage customers to recycle waste with TAIPEI 101. In the past, because the shopping mall garbage is collected together and sent to the Waste Management Center for separating into recyclable and waste. The 3.26 The Recyclable and Waste garbage bins in the shopping Bins in the Shopping Mall mall are not marked as recyclable waste or regular waste, which confused the customers as to where they should dispose of recyclable trash. In 2013, we added 50 recyclable bins in the shopping mall to encourage recycling.

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3.27

2013 Taipei City Public Restroom Evaluation as Outstanding (User- friendly Category)

3.28

2013Taipei City Public Restroom Evaluation as Outstanding (Department Store Category)

Green Tourism TAIPEI 101 is an architectural landmark in Taiwan and a must on the itineraries of many visitors when they come to Taiwan. The building draws many people to the observatory each year, and they have a bird’s eye view of Taipei City from the tallest building in Taiwan. By 2013, the observatory has registered 2.296 million visitors. This figure shows that we are an important asset to Taiwan’s tourism industry and responsible for providing a comfortable and environmentally-friendly tourism facility. Sharing TAIPEI 101’s Environmental Protection Measures

We host many tourists at the observatory on the 89F of the tower to enjoy the view. Through this, we can have more people understand the actions that TAIPEI 101 has taken to care for mother earth. We installed a Green On wall display at the observatory to promote the concept of TAIPEI 101’s Green On project and the measures implemented, and to encourage the visitors to have a 10+1 green actions in their daily lives.

1. Turn off lights whenever possible 2. Conserve water 3. Take public transportation 4. Regulate the air conditioning temperature

5. Treasure paper resources 6. Recycle 7. Bring your own utensils 8. Buy green merchandise 9. Eat local food 10. Use green cleaning products

“10+1” means that the 10 green initiatives have to be reinforced with one persistent determination, because the earth can be better only with the persistent effort of everyone.

Maintaining Tourism Environment Quality B e c a u s e t h e o b s e r v a to r y i s located on the 89F of TAIPEI 101, its management of energy, water resources, and waste is identical to that of the tower. For lack of space, we did not add recycling bins at the observatory. However, in practice, we send the garbage generated at the observatory to the Waste Management Center in the basement for recycling. To give customers peace of mind, we posted a note about waste handling on the outside of the garbage bin in the observatory.

3.30 Observatory Garbage Bin

3.29 Green ON Wall Display

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Encouraging Tourists to Take Public Transportation

3.31 MRT Xinyi Line Limited Edition 101 Cup

To support low-carbon tourism, we e n c o u r a g e v i s i to r s to t a k e p u b l i c transportation to get to TAIPEI 101. When the MRT Xinyi Line opened, the observatory launched the 2013 MRT Xinyi Line limited edition 101 Cup, which used lively colors and city pattern designs. They were displayed at the B1F Gift Shop of the observatory, hoping to encourage more people to travel to TAIPEI 101 by MRT and use their own cups for drinks. Within the first month of operation, it is free to take the Xinyi Line, and the sale of 101 Cup doubled. All 800 limited edition cups were sold within three months, achieving the goal of this promotional activity.

Green Christmas Tree

We asked Leslie Chen, a renowned designer, to design a Christmas tree for the lobby of TAIPEI 101 Tower. It was a gigantic, green Christmas tree that came from the 37,112 PET bottles recycled from the building over two months and then spun into 3,290 yards of yarn and then folded into 122,000 flowers. The dandelion-shaped light on the top of the Christmas tree shows that the idea of environmental protection will spread around the world like dandelion seeds. During the Christmas time of 2013, 508 bottles of bottled water in the shape of TAIPEI 101 were crafted into an “Crystal Christmas Tree” that was 2-meters tall and 1.5-meter in diameter, signifying TAIPEI 101’s height of 508 meters and conveying the environmental conservation image of a world-class green building.

3.33 Crystal Christmas Tree

3.32 Observatory Damper Baby and Christmas Tree

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Green Community While TAIPEI 101 is the paradigm of the tallest green building, it continues to seek innovative technology to improve the energy consumption of the building. The reason for doing so is fulfilling the green commitment to the earth. We work hard to reduce the direct impact to the environment from our operation and think about the indirect impact of business activities, such as the reduction of green space and activities that cause greenhouse gas emissions. We start from protecting the surrounding environment and promote environmental education so that green living can thrive in cities. Adopting Chung Chiang Park

Green Education

Chung Chiang Park is a habitat abundant with wildlife, including the Taipei tree frog that is on the red list of threatened species of the International Union for Conservation of Nature (IUCN), and the Taiwan blue magpie that, while it is on the “not threatened” list of IUCN, it is listed as a “Rare and Valuable Protected Species of Taiwan” and has been protected by the Cultural Heritage Preservation Act since 1989. Both species are endemic to Taiwan. We promise to maintain the landscape of Chung Chiang Park. We clean up the debris after the typhoon and preserve the cleanliness of its environment. Considering the importance of the ecology of Chung Chiang Park and the fact that the species that inhabit there are vulnerable to toxins, we avoid using insecticides and chemicals. We also insist on cleaning up tree leaves by manual labor to maintain the growth of plants on the ground.

Additionally, we also provide green tour of TAIPEI 101. Institutions or groups can apply for such green tours. In 2013, we hosted 36 organizations, groups, and schools with visitors totaling 1,380 persons at no cost to them. This was the equivalent of a NT$200,000 in environmental education budget. Through green tours, visitors can gain deeper understanding of TAIPEI 101’s idea and actual practice as a green building. This service further helps us promote the idea of environmental protection and sustainable development.

We understand that the structure of TAIPEI 101 and the selection of the construction and materials used will cause a direct or indirect impact on biodiversity. Other than reducing the greenhouse gas emissions and following sustainability purchase doctrines, we adopted the 4,644 square meters of green area in Chung Chiang Park on the fringe of Xinyi District to reduce the indirect impact that our company brought on biodiversity.

We designated a corner in the lobby of the office tower as Green Corner, which is used as a space for promoting green building. The details include interactive films in which Green Damper Baby introduce the Green On project to visitors of the building. We also set up a Green On area on our official website and convey TAIPEI 101’s green experience to a wide range of internet users with lively animated film. We want to educate the general public to practice green living.

3.35 TAIPEI 101 Green Tour

3.34 The Maintenance Work at Chung Chiang Park

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