Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Integrity Management and Anti-Corruption
• Compliance
• Supplier Management
• Waste Management
• Research and Development, Innovation and Quality Management

Environmental Achievements

• Waste catalyst recycling: 334,386 kg; Waste sulfuric acid recycling: 11,778.6 tons
• 100% of packaging materials purchased were made from FSC-certified recycled paper.
• Obtained ISO 14067 carbon footprint certificates for cobalt sulfate and nickel sulfate products.

Social Achievements

• Annual cooperation with social welfare groups to purchase gift boxes as employee gifts.
• Donated NT$100,000 to the Hukou Township Office for emergency relief.
• Donated NT$1 million to the Cancer Hope Foundation.
• Donated 2,124 magazines to 41 elementary schools and 13 junior high schools in Miaoli County.

Governance Achievements

• Established a Sustainability Development Committee in August 2022.
• 100% completion rate for new employee anti-corruption training.
• 100% completion rate for board member anti-corruption training.

Climate Goals & Targets

Environmental Challenges

• Two waste management violations in 2022.
• Supply chain disruptions due to the war in Ukraine and global inflation.
• Potential human rights risks in the cobalt supply chain from Africa.

Mitigation Strategies

• Implemented corrective actions for waste management violations.
• Strengthened relationships with suppliers and diversified sourcing strategies.
• Implemented the Responsible Minerals Assurance Process (RMAP) and obtained a compliant cobalt refinery certificate.

Supply Chain Management

Supplier Audits: 4 suppliers audited in 2022

Responsible Procurement

• Supplier Code of Conduct
• Conflict Minerals Policy
• ESG/CSR policy and guidelines survey

Climate-Related Risks & Opportunities

Physical Risks

• Droughts
• Flooding

Transition Risks

• Raw material price increases
• Changes in customer behavior
• Market uncertainty

Opportunities

• Resource efficiency improvements
• R&D of new products and services
• Entering new markets

Reporting Standards

Frameworks Used: GRI Standards 2021, SASB Chemical Industry Standards, TCFD

Certifications: ISO 9001, IATF 16949, ISO 14001, ISO 50001, ISO 45001, ISO 14067

Third-party Assurance: Deloitte & Touche

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

The company's initiatives contribute to these goals through energy efficiency improvements, waste reduction, responsible sourcing, and climate change mitigation.

Sustainable Products & Innovation

• Recycled materials
• Energy-efficient processes

Awards & Recognition

• Taiwan Institute of Economic Research's Brand Soaring Project

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Environmental Protection and Climate Action
• Blessed Office and Community Outreach
• Products and Services

Environmental Achievements

• Reduced energy usage by approximately 41% from the previous year, resulting in a total emission reduction of 2,340.07 tCO2e
• Increased environmental expenditure by 1.5 times compared to 2022, reaching NTD 13.92 Million
• Heng-I introduced cogeneration, achieving a 1.4% reduction in electricity consumption in 2023
• All subsidiaries implemented ISO 14001
• CoreMax Corporation and Uranus Chemicals implemented ISO 14064-1

Social Achievements

• Respects employee rights, regularly reviews human rights-related training indicators to improve human rights governance, and ensures all operational locations comply with local regulations
• Conducts annual due diligence on the cobalt supply chain, identifying and assessing supply chain risks, and implementing corresponding measures for identified risks
• For nine consecutive years, collaborated with social welfare groups for festive welfare gift boxes, prioritizing the purchase of products that support disadvantaged groups as employee holiday gifts
• For five consecutive years, supported the “Planting the Seeds of Reading” project, donating a total of 8,387 magazines to 54 elementary and junior high schools
• Sponsors local sports activities and events

Governance Achievements

• Achieved ISO 9001 Certification Across the Entire Group
• IATF 16949 Management System
• Added 2 New Female Independent Directors, Enhancing Board Diversity by 22%
• Corporate Governance Evaluation Improved Annually, Reaching 20-35% in 2023, Up from 36-50% in 2022
• 100% Supplier Assessment Completion Rate
• Published the Cobalt Supply Chain Due Diligence Report for Four Consecutive Years

Climate Goals & Targets

Environmental Challenges

• Global shortages of raw materials, rising prices, and supply chain disruptions, leading to severe inflationary pressures
• Significant fluctuations in metal raw material prices
• Extreme weather events such as floods and droughts
• Increased raw material costs due to supply-demand imbalances
• Heightened regulatory requirements as Taiwan moves toward its 2050 net-zero emissions target

Mitigation Strategies

• Implementing ISO 14001 environmental management systems and completed ISO 14064 greenhouse gas inventories
• Hedging key raw materials, specifically cobalt and nickel, using derivative financial products
• Developing alternative sourcing strategies
• Actively implementing energy-saving and carbon-reduction initiatives
• Investing in waste catalyst recycling services and waste sulfuric acid recycling and reuse

Supply Chain Management

Supplier Audits: 5/year

Responsible Procurement

• Supplier Code of Conduct
• OECD Due Diligence Guidance for Responsible Supply Chains of Minerals
• RMI guidelines
• Conflict Minerals Reporting Template

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (typhoons, floods, droughts)
• Rise in average temperature

Transition Risks

• Rising raw material costs
• Changes in customer behavior
• Market information uncertainty
• Increased costs for low-carbon technology transition
• Mandatory/Legislative Requirements to Disclose Carbon Emissions

Opportunities

• Recycling and reuse
• Use of more efficient production and distribution processes
• Participation in renewable energy projects
• Reduction in water usage
• Use of new technology

Reporting Standards

Frameworks Used: GRI Universal Standards 2021, SASB, TCFD

Certifications: ISO 9001, IATF 16949, ISO 14001, ISO 45001, ISO 14064-1, ISO 50001, ISO 17025, RMI RMAP

Third-party Assurance: KPMG