|ESG

Ecological protection is an important issue for corporate sustainable development. During plant site selection, construction, and operations, Walsin Lihwa follows environmental impact assessment procedures and related environmental regulations, and continuously examines the impacts of land use, water resource management, and emission control on the ecological environment, progressively reducing impacts on ecology and species diversity.

In 2025, the Company completed a protected area inventory for major manufacturing sites, confirming that core plant areas are not located within national parks or legally designated nature reserves. No material biodiversity-related penalty events occurred during the year.

In terms of governance, ecology and nature issues have been listed as regular discussion items of the Sustainable Development Committee, with research underway to incorporate them into the natural-related risk oversight mechanism. The Sustainability Office coordinates the advancement of related actions and management planning, and regularly reports implementation status to the Board of Directors. In the future, Walsin Lihwa will reference the TNFD (Taskforce on Nature-related Financial Disclosures) development trends to continuously strengthen natural risk identification and management capabilities, progressively improving natural-related management mechanisms.

Nature Co-existence Strategy and Management Direction

Walsin Lihwa upholds the core principle of 'reducing negative impacts on the natural environment and creating positive ecological value' in promoting biodiversity-related actions, and through cross-disciplinary collaboration connecting academic institutions, non-profit organizations, and local communities, jointly enhances ecosystem resilience.

Current key action directions include:

  • Supporting conservation of important habitats and native species
  • Promoting land-friendly use and sustainable agricultural models
  • Facilitating native plant germplasm preservation and restoration
  • Raising awareness of natural issues among employees and stakeholders
Through the above actions, the Company progressively establishes a foundation for long-term corporate responsibility and management for the natural environment.

Promoting Wetland-Friendly Cultivation to Protect Key Species Habitats

Walsin Lihwa continues to support the pheasant-tailed jacana ecological restoration program in the Guantian area of Tainan, assisting in the promotion of water chestnut friendly cultivation models and improving agricultural management to reduce the disruption of wetland ecology and water bird breeding by agricultural activities.

The pheasant-tailed jacana (Hydrophasianus chirurgus) is a second-level protected bird species in Taiwan, primarily relying on floating aquatic plants in paddy fields or ponds for breeding. The current Taiwan population mainly inhabits artificial wetlands such as water chestnut fields and wild lotus fields, with the largest population located in the Guantian area of Tainan. In the past, population numbers significantly declined due to habitat development and pesticide use. Through multi-party collaboration to promote friendly farming, a 2024 survey in Tainan recorded 3,030 pheasant-tailed jacanas, showing that ecological restoration results are progressively materializing.

In 2025, the program further introduced soil testing and fertility analysis mechanisms, combining precision fertilization and cultivation process adjustments, and strengthening scientific agricultural management models through farmer exchange meetings and field diagnostics. This year, non-quicklime management practices were established, helping farmers improve soil conditions before planting and reducing traditional quicklime use to lower potential impacts on jacana chicks. A total of 10 farmers participated, with a trial area of approximately 2.25 hectares, progressively forming a reference model for friendly cultivation management.

In addition, bird species such as pied avocets, black-winged stilts, and common moorhens were observed using the farmland as habitat, indicating that a balance between agricultural production and ecological conservation can be achieved through management practices.

Native Plant Restoration and Natural Carbon Sink Actions

To strengthen the resilience of Taiwan's forest ecosystems and enhance natural carbon sink capacity, in 2018, Winbond Electronics, Walsin Lihwa, and other Group companies jointly established 'Huabao Seed Conservation and Breeding Co., Ltd.,' dedicated to promoting Taiwan forest germplasm collection and native plant restoration.

Huabao cooperates with National Chung Hsing University's Institute of Circular Economy Research. In terms of seed conservation and breeding operations, a seedling greenhouse has been established in Baoshan, Hsinchu for cultivating native seedlings applicable to afforestation, restoration, environmental education, and conservation promotion, progressively establishing a foundation for germplasm preservation and propagation of Taiwan's indigenous tree species.

Phase 1 collection of 24 Taiwan Theaceae species was completed in 2023. From 2024 to 2025, cultivation technology optimization and related facility construction continued to strengthen germplasm preservation and seedling cultivation capabilities. Currently, the 'Baoshan Campus' has completed Phase 1 construction, building a germplasm conservation greenhouse and seedling operation space with remote control systems, and progressively transferring germplasm and seedlings originally stored at National Chung Hsing University's Huisun Agricultural and Forestry Farm as the basis for subsequent practical conservation and breeding operations.

In terms of afforestation and carbon sink promotion, in 2024 Huabao successfully won a bid for national land to introduce the natural carbon sink industry under the National Property Administration, obtaining the right to newly plant trees on 21.52 hectares of national land in Sanxing Township, Yilan County, advancing new afforestation and GHG voluntary reduction projects in accordance with relevant regulations. In accordance with National Property Administration requirements, new afforestation will adopt the 'appropriate species for appropriate sites' principle using native tree species, planting 1,800 to 2,000 seedlings per hectare, and continuing to advance afforestation and ecological improvement operations at the 'Sanxing Forest Area.'

For areas that were formerly abandoned quarry sites affected by invasive species and environmental impacts, through systematic afforestation and ecological improvement in collaboration with National Ilan University, unmanned aerial vehicle (UAV) remote sensing and other technologies are introduced to establish forest survey and monitoring mechanisms. Technology assists in forest land management and monitoring, progressively forming an intelligent forestry management model, continuously improving carbon sink benefits and stabilizing the value of the ecological environment.

According to data publicly disclosed by competent authorities, during the maximum 60-year lease period, the project is expected to accumulate approximately 17,000 MT of carbon sinks, with an annual average of 10 to 30 MT of carbon sink benefits per hectare. Actual reduction credits are still subject to subsequent project applications and verification results. This action not only responds to climate change carbon reduction needs, but also promotes forest structural restoration and maintenance of ecological diversity through afforestation with native species.

Through native plant germplasm conservation, nursery cultivation, and afforestation restoration actions, Walsin Lihwa incorporates natural carbon sinks and biodiversity management into long-term planning, progressively strengthening the foundation of natural capital management.

Strengthening Awareness of Nature, Deepening Organizational Engagement

Walsin Lihwa strengthens employee and stakeholder understanding of and engagement with natural issues through environmental education activities (for related information, please refer to Section 2.5.4 Caring for Ecology), progressively enhancing the organization's focus on biodiversity issues.