Teco Electric and Machinery Co Ltd – Lobbying Governance & Transparency

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Lobbying Governance

Overall Assessment	Analysis	Score
Strong	TECO has implemented a robust governance process to align its lobbying activities with climate goals, requiring that climate-related initiatives need to be reviewed by the ESG Office and participated in with the consent of the CEO of the office, and that their implementation will be monitored by the Corporate Governance and Sustainability Committee at the board level. The ESG Office regularly conducts reviews and evaluations of public associations in which the company participates, while the Secretary Office of the Board of Directors coordinates these efforts and reports directly to the chairman of the board on the implementation of various policies. To ensure both direct and indirect lobbying is consistent with the Paris Agreements 1.5?C target, TECO follows annual monitoring and review procedures that include confirming relevant associations, assessing alignment based on publicly disclosed information, seeking advice from third-party consultants, and submitting the outcome to the Corporate Governance and Sustainability Committee. Oversight is clearly assigned to a specific role, as the ESG office CEO, equivalent to CSO, is responsible for the implementation of the companys climate change lobbying policies and practices and reports monthly to the chairman. The policy also stipulates that if an association does not revise its climate change policy stance within one month, TECO will withdraw membership and financial support and make a public statement. While this framework demonstrates strong internal controls and clear accountability, the company does not disclose a dedicated public report or third-party audit specifically evaluating the alignment of its climate lobbying activities, which would further enhance transparency. View Sources	B

Overall Assessment

Analysis

Score

Strong

TECO has implemented a robust governance process to align its lobbying activities with climate goals, requiring that climate-related initiatives need to be reviewed by the ESG Office and participated in with the consent of the CEO of the office, and that their implementation will be monitored by the Corporate Governance and Sustainability Committee at the board level. The ESG Office regularly conducts reviews and evaluations of public associations in which the company participates, while the Secretary Office of the Board of Directors coordinates these efforts and reports directly to the chairman of the board on the implementation of various policies. To ensure both direct and indirect lobbying is consistent with the Paris Agreements 1.5?C target, TECO follows annual monitoring and review procedures that include confirming relevant associations, assessing alignment based on publicly disclosed information, seeking advice from third-party consultants, and submitting the outcome to the Corporate Governance and Sustainability Committee. Oversight is clearly assigned to a specific role, as the ESG office CEO, equivalent to CSO, is responsible for the implementation of the companys climate change lobbying policies and practices and reports monthly to the chairman. The policy also stipulates that if an association does not revise its climate change policy stance within one month, TECO will withdraw membership and financial support and make a public statement. While this framework demonstrates strong internal controls and clear accountability, the company does not disclose a dedicated public report or third-party audit specifically evaluating the alignment of its climate lobbying activities, which would further enhance transparency.

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Lobbying Transparency

Overall Assessment	Analysis	Score
Strong	TECO Electric and Machinery provides a solid level of transparency about its climate-policy advocacy. It identifies several concrete areas of engagement – participation in the “1.5 °C Climate Action Declaration,” requests for government incentives to accelerate adoption of IE4 high-efficiency motors, proposals for comprehensive vehicle-electrification policy, and calls for preferential tax rebates for green-energy products – allowing readers to recognise at least two distinct policy initiatives and the government bodies involved. The company also spells out how it lobbies: it holds direct meetings with the Ministry of Economic Affairs and the Executive Yuan, and it advances its positions through industry groups such as the Chinese National Association of Industry and Commerce and the Taiwan Electrical and Electronic Manufacturers’ Association, where it occupies leadership roles; these multiple channels, together with the oversight of the ESG Office that reports to the chairman, give a clear picture of both mechanisms and targets. Finally, TECO is explicit about what it wants those efforts to achieve, namely faster motor energy-efficiency upgrades, comprehensive EV policies, tax rebates for green products, and alignment with national energy-conservation and Paris-aligned carbon-reduction goals, demonstrating a consistent articulation of desired outcomes. Taken together, the disclosures show a strong degree of openness about the company’s climate-related lobbying activities.	B