Walsin Lihwa actively responds to climate change by formulating carbon management, net-zero emissions, and resource circular utilization policies and vision, and through year-on-year increases in hardware and software investments in energy conservation and carbon reduction, resource recycling, and green supply chain management, striving to build a sustainable and environmentally friendly operational system. The framework is as follows:

Prioritizing the use of green raw materials (such as scrap metals) and renewable energy (such as solar), and introducing intelligent equipment to improve efficiency and reduce resource waste.

Using chemical energy to replace some electric arc furnace steelmaking electricity, and reducing pollutant emissions through process technology improvements (such as pure oxygen combustion technology and equipment performance optimization).

Advancing circular utilization of waste resources (such as converting waste plastics into recycled plastic pellets, waste acid recovery and regeneration), and implementing water resource and energy circular utilization measures such as process and environmental equipment cooling water recycling, reclaimed water reuse, waste heat recovery, and slag reuse.

Walsin Lihwa has implemented ISO 14001 Environmental Management System, ISO 50001 Energy Management System, ISO 14064 GHG Inventory, ISO 14067 Product Carbon Footprint, and ISO 46001 Water Resource Efficiency management systems. Through comprehensive environmental management systems, the Company strengthens energy resource management, improves resource utilization efficiency, and reduces the environmental impact of operations, moving toward a circular economy. The scope, verification/certification institutions, and certificates for the environmental sustainability management systems are detailed in the "About This Report" section and on the Company's official website.

Walsin Lihwa actively introduces advanced pollution control equipment, combined with multiple management systems and methods, to reduce the adverse environmental impacts of production activities - including reducing emissions and improving recycling rates - builds a complete environmental monitoring system, inventories potential pollution areas, and takes preventive and corrective measures in advance.

To achieve Walsin Lihwa's 'net-zero carbon emissions' target, the Company uses scientific methods to set reduction targets and take measures, while jointly promoting energy management and carbon management together with the external supply chain.

In 2025, energy consumption in order of magnitude was: electricity, natural gas, gasoline, diesel, and purchased steam. Total heat value: 10,449.21×10³ GJ. Energy consumption and heat value proportions by product type are shown in the table below:

In alignment with national energy conservation targets, the Company continues to promote various energy-saving measures and optimizes the energy management information platform while conducting comprehensive inventories. In 2024, all mainland China plants completed third-party verification of the ISO 50001 energy management system, and verification has continued in subsequent years. Through the energy management information platform, key indicators are identified for hotspot analysis to discover energy conservation and carbon reduction opportunities. Furthermore, the Indonesia plant (PT. Walsin Nickel Industrial Indonesia) passed ISO 50001 third-party verification in 2025 - Walsin Lihwa's ISO 50001 coverage rate across all plants now stands at 60%. In 2025, energy intensity per unit of product for Asia-region wire and cable and stainless steel decreased by 1.64% and 4.82% respectively compared to 2024; the 2026 target is set at a 1.5% reduction in energy consumption per unit of product compared to 2025.

Since 2015, Walsin Lihwa has built and continuously optimized the 'Environmental Safety Information Platform - GHG Inventory and Product Carbon Inventory' to collect GHG emissions from each plant, with the Environmental Safety and Health Management Committee reviewing and managing GHG emissions quarterly.

Walsin Lihwa continuously monitors the development of carbon emission trading, the EU Carbon Border Adjustment Mechanism (CBAM), Taiwan's carbon fee, and is formulating internal carbon pricing. The Company participates in mainland China's carbon trading market operations to ensure future carbon quota quantities and the Company's sustainable business development.

Since 2014, Walsin Lihwa has promoted GHG emission intensity inventories and various energy reduction plans. In 2025, Taiwan and overseas (Asia) plants are categorized by product type into wire and cable, copper wire/rod, and stainless steel, with emission intensities of 0.392, 0.131, and 0.615 respectively; compared to the base year^Note, these represent increases of 5.86%, decreases of 5.92%, and increases of 3.18% respectively. In terms of total GHG emissions, total emissions from Taiwan and overseas plants decreased by 12.44% and increased by 5.62% respectively compared to 2024, primarily due to company acquisitions and the expansion of disclosure boundaries.

Walsin Lihwa continues to seek various feasible reduction solutions, committing to achieve a 15% reduction in GHG emissions per unit of product compared to 2014 by 2030, striving toward a low-carbon economy.

Walsin Lihwa follows ISO 14064:2018, the GHG Protocol, and third-party verification to identify carbon emission activities in the value chain as a reference for formulating emission reduction strategies. In 2023, the Company established the 'Walsin Lihwa Low-Carbon Alliance' and promoted a sustainable supply chain program, working together with value chain partners to build a sustainable business model.

For 2025 GHG Scope 3 inventory items, Walsin Lihwa applies materiality identification criteria, considering assessment factors such as emission volumes, improvement potential, and quantification methods, to identify upstream raw material purchase emissions, emissions from the disposal and treatment of operationally generated waste, and disclosure of Scope 3 category items.

Walsin Lihwa launched the 'Green Supply Chain Initiative' in 2021, adopting a phased strategy to progressively guide supplier transformation. From 2022, the Company formally required the top 20% of suppliers to conduct GHG inventories, subsequently expanding the scope each year. By 2024, the inventory proportion had been raised to the top 40% of suppliers, with the introduction of risk data analysis and energy management system promotion.

In 2025, inventory and verification coaching for the top 60% of suppliers has been completed, with formal emission reduction projects to be launched from 2026, assisting suppliers in setting carbon reduction targets and implementing energy-saving achievements. The ultimate goal is to achieve full coverage of all suppliers by 2040, building a highly resilient net-zero supply chain ecosystem through in-depth environmental and occupational safety and health systems.