International CSRC Investment Holdings Co., Ltd.

Climate Impact & Sustainability Data (2018)

Total Carbon Emissions:218,435 tCO2e/year (Scope 1 & 2)

Total Energy Consumption:2,063,359 GJ/year

Water Consumption:1,391,200 m3/year

Waste Generated:3,902 tons/year (recycled carbon black)

Carbon Intensity:8.94 metric tons‧CO2e/NT$ million

Installed SCR system at Maanshan Plant, reducing NOx and SOx emissions by more than 96% and 99% respectively.
Installed SCR system at Anshan Plant, expected NOx reduction above 95%.
Invested NT$333 million in De-SOx and De-NOx systems in Greater China (6 times 2017 investment).
Invested approximately NT$1.5 billion in environmental protection in the United States.
Waste heat recovery generated about 607,193 tons of steam, all sold to neighboring plants.
Recycled 240,900 tons of water from production processes (9.92% increase from 2017).
SOx emission significantly decreased by 46.64% compared to 2016.

Increased number of Class-A suppliers by 24.
Total donation amount of approximately NT$14,060,000.
Education and training expenses of NT$1,725,800 for 3,440 hours.
Occupational safety and health expenses of NT$510,880 for 1,021 hours of education.
Customer satisfaction score of 9.36 (delivery schedule satisfaction: 9.50).

Established the Sustainable Development Committee.
Complied with the "Corporate Governance Best Practice Principles for TWSE/GTSM-Listed Companies" and related ethical standards.
Established the Regulations for Setting Up Corporation Sustainable Development Committees.
Implemented the Regulations for Audit Committee Organization.
Established the Regulations for the Scope of Responsibilities for Independent Directors.

Long-term Goals:

Implement certification of "Carbon Footprint" and "Water Footprint".
Reach 40,000 species of living plants by 2027 at Dr. Cecilia Koo Botanic Conservation Center.

Medium-term Goals:

Achieve the objective of saving electricity by 1%.
Replace the U2 line MBF by 2019.
Introduce the latest denitration equipment in 2019 to effectively reduce NOx to below 20ppm.

Short-term Goals:

Reduce water consumption by more than 1% annually.
Achieve a 5% reduction rate for SOx, NOx, particulate pollutants, and volatile organic compounds.

Rapidly changing carbon black industry and global operation factors causing risks.
Strict air pollution control standards in Kaohsiung City.
Risk factors impacting CSRC Group's short-term, mid-term, and long-term operations.
Competition in the carbon black market and feedstock oil sources.
Stricter environmental protection laws and regulations in all countries.

Continuous updates to production processes and air pollution equipment.
Risk management organization communicating with functional departments.
Development of sustainable development strategies and targets based on identified risks and opportunities.
Investment in environmentally friendly equipment.
Merger of small-scale manufacturers and deployment of new production capacity in high-growth markets.

Supplier Audits: 54 audits in 2018

Frameworks Used: GRI Sustainability Reporting Standards (Core Option)

Certifications: ISO 9001, ISO 14001, IATF 16949, TOSHMS, OHSAS 18001, ISO 50001, ISO 14064-1

Third-party Assurance: Deloitte & Touche

The report details how CSRC Group's initiatives contribute to these goals through various environmental and social programs.