In order to implement pollution control, the best process technology and air pollution control facilities are adopted. During the factory construction stage, air pollution control facilities are designed using the Best Available Technology and Control Technology (BACT); During the production and operational stages, the optimal air pollution control equipment is used to reduce exhaust emissions.

The Company requires that all air pollutant emissions in the plants must comply with environmental regulations and promote reduction projects. The Company's regulated air pollutants include nitrogen oxides, sulfur oxides, particulate matter and volatile organic compounds. In 2023, Taiwan factory emissions decreased by 7.13% compared with 2022, particulate matter emissions decreased by 20.66%, and volatile organic compounds decreased by. 8%. The emissions of sulfur oxides, nitrogen oxides and particulate matter from overseas factories all increased compared with last year. The main reason was that the Yantai factory added a steel rolling mill. Overall, oversea plants have adjusted their product structure and Dongguan and steel cable factories have stopped production and increased CAS. Therefore, the overall emission intensity has also increased compared with 2022 due to this change in production structure.

Among the various pollutants, non-emitting volatile organic compounds are not items controlled by the competent authority and do not require numerical testing due to its industrial characteristics. In 2023, all other emission concentrations will be far below regulatory standards, with the most significant reduction in the intensity of particulate pollutants.

Walsin is committed to the proper management and recycling optimization of "water resources", conducts water resource risk impact analysis and continuous operation planning. We also established a management model of "source management", "source reduction" and "recycling" to ensure the continued operation of the company's water system and formulate a water shortage crisis response mechanism in advance. Through the Safety and Environmental Database-Water Resources Data Platform, the water balance of each plant is analyzed and compared with historical data during the same period for management and improvement. In response to the risk of water scarcity, we have implemented zero-discharge wastewater in overseas high-risk factories (Shanghai Walsin and Yantai Walsin) to increase the reuse of reclaimed water. We are also seeking to cooperate with local governments to connect recycled water from the Water Resources Regeneration Center to the plant for use. The water consumption rate increased by 1% in 2023, mainly due to the formal operation of the Yantai Steel Rolling Mill, resulting in an increase in overall water consumption.

Our company uses rainwater recovery systems, process water recovery and cooling circulating water as water conservation measures; Tap water is the main source of water for operations. According to water meter records, the total water consumption in Taiwan plants was 13,229.46 million liters (the total water consumption per unit product is 0.018) in 2023, and the total water consumption in overseas plants (Asia) was 825.49 million liters (the total water consumption per unit product is 0.003). The total water consumption in oversea plants (Europe) was 11,356.21 million liters (the total water consumption per unit product is 0.067). Compared with the average increase of 24.98% in water consumption per unit of product in Taiwan and overseas regions (Asia) in 2022, the official commissioning of Yantai Rolling Mill has increased the water consumption per unit of plant product in overseas regions.

In 2023, the water recovery rate of Taiwan plants and overseas plants decreased by 0.7% (91.8% → 91.1%) and 5.7% (24.73% → 19.04%) compared with 2022. This was mainly due to the adjustment of product types and the introduction of new processes in oversea plants, resulting in an increase in overall water use.

Walsin Lihwa's wastewater management objectives include pollution and emission reduction as well as recycling. Wastewater at individual plant sites is properly processed by their wastewater treatment facilities to comply with effluent standards. In addition to self-sampling of wastewater every day, disinterested third-party inspections of wastewater quality takes place on a regular basis to prevent environmental impacts resulting from wastewater emission and ensure wastewater quality at individual plant sites to comply with local effluent standards.

The total wastewater discharge from Taiwan's plants in 2023 was 3.86x10² million liters, the total wastewater discharge from oversea plants (Asia) was 0.57x10² million liters, and the total wastewater discharge from oversea plants (Europe) was 96.77 x10² million liters. The total emissions from Taiwan's plants decreased by 6% compared with 2022.

Walsin uses 4Rs of environmental protection (Reduce, Reuse, Recycle, Recovery) as the basis for waste generation and control. In 2023, the overall waste recycling and reuse rate of copper wire, wire and cable, and stainless steel was 95.61%, and the reuse rate of non-hazardous waste was 97.20% to 98.89%; Reuse rate of hazardous waste 55.9% to 99.55%. In addition to some of the waste produced by ourselves, all the waste is cleared, processed or reused by qualified manufacturers. The waste output of Taiwan plants and oversea plants increased by 6% compared with 2022 (mainly due to the increase of Yantai Steel Rolling Plant); The overall waste reuse rate of the Taiwan plant increased by 1.82% compared with 2022. This is mainly due to the fact that all waste acid from the Yenshui Plant was transported to the Taichung Plant for waste acid treatment, reuse and process improvement and adjustment, thereby further reduce dust collection and sludge output, and achieve the target of <1% landfill rate in Taiwan and overseas.

Walsin Lihwa shall continue its promotion of waste reduction at source as well as waste recovery and reuse, and shall also leverage its whole supply chain to decrease raw material consumption and environmental burdens resulting from production, realize the ideal of circular economy by ongoing development of innovative environmental protection technologies, strengthening business sustainability, perfecting the audit and control of whereabouts of its wastes, and ensuring waste treatment contractors comply with relevant laws and regulations.

There were no major environmental fines (more than NT$100,000) in 2023; There has been no pollution leakage that caused the company to suspend production or resident protests around the plant; There was no leakage of sewage or waste.

In recent years, Walsin has continued to invest in industry-academia research projects on the resource utilization of oxidized ballast and reduced ballast in stainless steel steelmaking, jointly promoting the value enhancement of furnace ballast resources and rebuilding the economic cycle industry chain project: