Walsin Lihwa actively responds to climate change by formulating carbon management, net-zero emissions, and resource recycling policies and goals. Through the gradual increase of annual investments in energy conservation, carbon reduction, resource reuse, and green supply chain management software and hardware, the Company is committed to creating a sustainable and eco-friendly operational system. The structure of the system is as follows:

Prioritize the use of green materials (such as scrap metals) and renewable energy (such as solar power), and introduce smart equipment to improve efficiency and reduce resource waste.

Use chemical energy to replace some electricity for electrical steel-making furnaces and manufacturing process improvement (such as pure oxygen combustion, and equipment performance optimization) to reduce the emissions of pollutants.

Promote waste recycling and re-use (such as plastic pellets made from recycled waste plastics and recycling of waste acids), water and energy recycling and reuse, such as cooling water circulation in process and eco-friendly equipment, reuse of reclaimed water, recovery of waste heat, and slag reutilization.

Walsin Lihwa has introduced a range of management systems, including the ISO 14001 environmental management system, ISO 50001 energy management system, ISO 14064 greenhouse gas inventory, ISO 14067 product carbon footprint, and ISO 46001 water efficiency. Through a comprehensive environmental management system, the Company strengthens energy resource management, improves resource utilization efficiency, reduces the impact of operations on the environment, and moves toward a circular economy. Please refer to the "About the Report" section and the company website for more information about the scope of the environmental sustainability management system, verification bodies, and certifications.

Walsin Lihwa actively introduced advanced control equipment and combined a number of management systems and methods to reduce the negative impact of production activities on the environment, including reducing emissions and improving recycling rates. The Company also introduced a complete environmental monitoring system to identify potential contaminated areas and take preventive and corrective measures in advance.

In order to achieve Walsin Lihwa's net-zero carbon emissions goal, the Company has not only applied scientific methods to set reduction targets and take measures, but also collaborated with external supply chains to jointly promote energy management and carbon management.

The order of energy consumption in 2024 was electricity, natural gas, gasoline, diesel, and purchased steam, with a gross heating value of 10,107.91×10³GJ. Energy use and heating value ratio by product are shown in the table below:

In line with the national energy-saving goals, Walsin Lihwa has continued to promote various energy-saving measures, optimize the energy management E-system platform and conduct comprehensive inspections. In 2024, all Mainland China plants passed third-party verification of ISO 50001 energy management system, and will continue to pass system verification each year. The Company will also use the E-Energy Management Platform to explore key indicators for hot spot analysis to find opportunities for energy conservation and carbon reduction. In 2024, the energy intensity and emissions intensity per unit product of wire and cable and stainless steel in Asia decreased by 40.26% and 26.51%, respectively compared with 2023. The energy consumption reduction target per unit product in 2025 is set to decrease by 1.5% compared with 2024.

Each plant has established an energy-saving and carbon-reducing management organization, set annual goals and various energy-saving and carbon-reducing measures, held regular meetings to review progress and have built an E-Energy Management Platform for real-time management.

The 5.5 MWp of renewable energy (solar power) planned for self-generation and self-use was fully completed in 2024, and 6,232,988 kWh of electricity was generated.

The Environmental Safety and Health Management Committee adjusted the 5-year energy management plan on an ongoing basis and set annual power saving and carbon reduction targets of 1.5%.

All 4 plants in Taiwan met the 1% annual power saving rate requirement of the Energy Administration of the Ministry of Economic Affairs, with an average power saving rate of 1.92%. A total of 105 carbon reduction plans were implemented in the Company's Taiwan and overseas (Asia) plants, with a total power saving rate of 3.14% and a total carbon reduction of 18,886 tons of CO₂e/year.

In 2015, Walsin Lihwa started to implement and optimize its Environmental Safety and Health Information Platform for greenhouse gas inventory and product carbon calculation by gathering data on greenhouse gas emissions at its individual plants for the Environmental Safety and Health Management Committee to conduct quarterly reviews of how such emissions are managed.

Walsin Lihwa continues to monitor the development of emissions allowances, EU Carbon Border Adjustment Mechanism (CBAM), Taiwan carbon fees and the development of internal carbon pricing, and participates in the operation of the Mainland China carbon trading market to ensure future carbon quotas and the Company's sustainable operation and development.

Since 2014, the Company has promoted greenhouse gas emission intensity inventory and various energy reduction plans. The emission intensities of Taiwan plants and overseas plants (Asia) in 2024 classified according to product characteristics (wire and cable, copper wire, stainless steel) were 0.320, 0.127 and 0.608, respectively; they decreased by 13.64%, 8.54%, and increased by 2.01%, respectively, compared to the base year ^Note; overall greenhouse gas emissions of Taiwan and overseas plants increased by 4.98% and 22.95% respectively compared to 2023.

Walsin Lihwa remains committed to exploring all feasible emission reduction solutions to reduce greenhouse gas emissions per unit of product by 15% in 2030 as compared to that in 2014 to help expedite low-carbon economy development.

Walsin Lihwa follows ISO 14064:2018, GHG Protocol and undergoes third-party verification to identify carbon emission activities in the value chain as a basis for formulating emission reduction strategies. In 2023, the Company established the Walsin Lihwa Low Carbon Alliance and promoted the sustainable supply chain plan. Together with value chain partners, the Company is building a sustainable business model.

For Scope 3 emissions in the 2024 greenhouse gas inventory, Walsin Lihwa adopted the materiality identification criteria to identify upstream raw material emissions from purchased products and services, fuel- and energy-related upstream emissions, disposal of waste generated from operations and related emission categories, and items disclosed in Scope 3, taking into account emissions, improvement potential, and quantification methods.