Carbon Reduction Planning and Measures

We began to persistently inventory GHG emissions in 2019, produce the “GHG Inventory Report” every year, and obtained the GHG verification statement. In accordance with ISO 14064-1, we inventoried and reported GHG emissions based on the verification standards of the protocol. The verification data was reasonably measured and calculated, and the verification results found no nonconformities with the substantial limits, and the verification data met the reasonable level of assurance.

Statistics on GHG emissions in the last three years

In response to the SBTi 1.5°C scenario, we draw up countermeasures (base year 2021) to achieve linear reduction of GHG emissions by 4.2% each year and to achieve carbon neutrality by 2050.

Employee Consensus on Energy Conservation	Energy management Item	Monitoring Methods	Action plans	2023 Targets
Turn off lights after use. Save water Take the stairs more often. Use paper on both sides. Report anomalies immediately.	ESCO building digitization Management of electricity consumption	Lighting facility monitoring Space temperature and CO2 monitoring Equipment automation control	Build the thermal-sensing lighting system Keep the aircon and chiller filter clean. Purchase Green Mark products	-3%
	ESCO building digitization Water consumption management	Water meter reading monitoring	Use two-stage flush Use pressured water-efficient taps	-1%
	Company car fuel management	Mileage management	Carpooling for business trips Optimal route planning Smart use of videoconferencing	-3%
	Paper consumption management	OA equipment login control	Use e-document with the ERP system Registration for claiming paper	-2%
	Wastewater management	Discharge of domestic sewage only		N/A
	Waste management	Recycling-Green Procurement Zero Waste-Lease POS management system	Professional recovery and disposal of waste cartons Professional destruction (incineration) of expired documents Accurate of the number of employee meals to reduce kitchen leftover Discounts for using own cups	-1%
GHG emissions				-4.2%
Carbon reduction management	Internal carbon pricing for 2022: US$250/t. Review annual performance based on the annual linear reduction by 4.2% of SBTi. Calculate the carbon cost for the amount not meeting the reduction target for the reference of carbon risk management and assessment. Use of carbon fee income: R&D of low-emission items and education and training for carbon management. Signed the ESG Index-Linked Loan with E.SUN Bank to link index performance with the loan interest rate. Established the “Regulations for Management of Sustainability Innovation Proposals＂ to encourage employees to brainstorm innovation for sustainable development and reward their efforts.

Short-, medium-, and long-term mitigation and adaptation plans

In 2022, we began to set the annual GHG reduction at 4.2% based on the Science-Based Targets initiative (SBTi) as the pathway to achieve net-zero emissions in the future. Carbon reduction targets (based year 2021):

Target 1: Reduce Scope 1 and 2 emissions by 95% (base year 2021) by 2030 and achieve carbon neutrality by 2050.

Target 2: Reduced emissions from “Upstream Transportation and Distribution” of Scope 3 by 63% over 2021 until 2035.

Response planning for Net-Zero 2050 action
Base Year 2021	2030	2035	2050
Scope 1	-95%		-100%
Scope 2	-95%		-100%
Scope 3 (Upstream Transportation and Distribution)		-63%	-100%
Net-Zero Action Plan	Replace all company cars with EVs by 2030 Green power implementation plan: 10% in 2040, 25% in 2025, 100% in 2030	Encourage upstream suppliers to build plants nearby to shorten transportation distance. Centralize procurement to reduce tranpsoration frequency Reduce inventories by direct purchase as much as possible. Use electric vehicles for inland transportation. National policy: Use 50% of electric trucks. Strengthen transportation mode change of the three major suppliers: from air into sea.	50% sustainable fuels for flight fuels Carbon neutrality for net-zero