Governance
In the face of an increasingly severe business environment, companies cannot ignore the regulatory requirements and the climate actions brought about by global warming. PANJIT Group has paid long-term attention to climate change, and is dedicated to the promotion of sustainable governance. To respond to the Financial Supervisory Commission's "Sustainable Development Roadmap" and the National Development Council's “Taiwan's Pathway to Net-Zero Emissions in 2050”, the Group refers to the Task Force on Climate-related Financial Disclosures (TCFD) Framework and the recommendations from Taiwan Stock Exchange Corporation Rules Governing the Preparation and Filing of Sustainability Reports by TWSE Listed Companies to assess and identify climate change risks and opportunities.
PANJIT's ESG Project Office reports to the Board of Directors on the schedules and progress of the GHG inventory and verification schedule progress on a quarterly basis. The content of the 2025 climate-related report covers the GHG inventory progress, the risk management operations (including climate change risks), and the impacts and countermeasures of climate-related risks and opportunities. Through the operation of ESG Project Office and the reports and discussions on related climate issues, better response strategies can be formulated to promote the sustainable management of PANJIT.
2025 Highlights of Climate-related Issues Reported to the Board of Directors
Indicator Targets
To lower the impact on operations brought by climate change, PANJIT Group has set short-, medium-, and long-term management goals for GHG emissions, renewable energy use, energy intensity management, wastewater recycling, waste reduction and so on as the regular review and evaluation of the goal achievement status and for the establishment of corresponding improvement plans.
Climate-related Indicators and Targets
Water Resources Management
The main water use at PANJIT Group is tap water. Water intake is compliant with local regulations and does not cause major environmental impact. The water resource stress risk where the plant is located is assessed in accordance with the World Resources Institute's (WRI) Aqueduct Water Risk Atlas, PANJIT and PYNMAX are located in lowrisk area while PANJIT (WUXI) is located in a high-risk area. In response to potential water supply risks in the area, the Group continues to monitor water intensity and water resource management in the plant area, set up management strategies and objectives, and pay attention to water resource risks for the establishment of countermeasures in a timely manner. In 2025, the tap water supply was shortly interrupted due to the construction of the Kaohsiung MRT. To maintain the normal operation of the production line, PANJIT factory immediately dispatched water trucks to support water supply for 48 hours without causing a major impact on operations. Through this effort, the Company
further enhanced its contingency response processes and internal coordination mechanisms under water restriction and water outage scenarios to ensure a stable water supply for operations.
Since 2022, PANJIT Gangshan Factory has successively implemented an electroplating rinse water recovery system, a cutting process wastewater recovery system, and a Reverse Osmosis Reject (ROR) water recovery system. By implementing source segregation, wastewater is classified into process wastewater, cutting process wastewater, electroplating rinse water, and domestic sewage, which are separately collected and routed to dedicated recovery and treatment facilities to enhance the efficiency of wastewater recovery and reuse. In 2025, the amount of water recovered reached 56,695 metric tons, with a water recovery rate of 10.89%.
PANJIT (WUXI) implemented the cutting process wastewater recovery system in 2018 to recover and reuse wastewater generated from production line cleaning. The reclaimed water achieves a quality equivalent to tap water and is reused in the production process. In 2025, the amount of water recovered reached 16,588 metric tons, with a water recovery rate of 13.22%. PYNMAX completed the establishment of the Reverse Osmosis Reject (ROR) water recovery system in 2022, which is used in the process of exhaust gas scrubber. The amount of water recovered reached 65,153 metric tons, with a water recovery rate of 30.48%, way higher than the process wastewater recovery rate target (≥15%). Overall, the water recovery rate has remained stable within the target range, showing the substantial benefits of the various recovery systems. The Company will continue to improve water use efficiency and operational resilience through process improvements and system optimization.
Unit
Wastewater at PANJIT Group mainly includes process wastewater and domestic sewage, which are treated onsite before being discharged, and is also diverted and managed separately in accordance with the drainage characteristics. This not only helps increase the recovery rate of water but also reduces the dosage used for water treatment that will lessen the difficulty of back-end wastewater treatment and environmental load due to the fact that some waste acid liquid and organic waste liquid still have its economic value after recovery. Treated wastewater at each site is discharged in compliance with applicable regulations, and water quality is regularly tested by commissioned service providers, and the results also show the treatment is compliant with legal requirements and there is no major impact on local water bodies.
Cleaning Process Optimization for Reduced Environmental Impact
In the semiconductor packaging process, cleaning agents are used to clean semi-finished products after soldering to remove flux residues from the solder paste, ensuring the quality of the molding process. PANJIT (WUXI) previously used n-propyl bromide (nPB) as the cleaning agent due to its strong cleaning capability. However, as a volatile organic compound (VOC), its use results in the emission of air pollutants and generates approximately 380 kilograms of waste liquid per month, requiring additional disposal costs and resulting in greater environmental impact.
PANJIT (WUXI) carried out optimization of its cleaning process in 2025 and completed the replacement of its cleaning machines and replaced n-Propyl Bromide Cleaner with an eco-friendlier modified alcohol solvent cleaner, which is halogenfree, has an ozone depletion potential (ODP) of 0, a low global warming potential (GWP), and better biodegradability.
Overall, it reduces cleaning agent usage by approximately 70% compared to the previous method, and is estimated to reduce VOC emissions by 1 ton per year. The use of modified alcohol solvent cleaner not only significantly reduces cleaning agent consumption and air pollutant emissions, but also allows the generated waste liquid to be treated and recovered for reuse. From both environmental protection and employee
health perspectives, this approach is better aligned with the trends of green manufacturing and sustainable development.
Waste Management
Waste in PANJIT Group is mainly divided into general industrial waste and hazardous industrial waste. Each factory collaborates with qualified and licensed waste collection
and treatment contractors for waste transportation and disposal. Contracts are established, and regulatory waste tracking manifests are submitted through the competent authority's system. GPS tracking is used to monitor transportation routes, while designated personnel conduct regular or random audits, including on-site inspections of contractors' disposal operations, to ensure compliant waste management. Waste generated in PANJIT's Hsinchu R&D Center and Taipei Operations Center is primarily domestic waste, which is uniformly entrusted to the office building.
The Group strives to manage waste generated at all factory areas through recycling and reuse in order to minimize environmental impacts. All waste is managed in full
compliance with applicable regulations. No hazardous waste listed under the Basel Convention was imported or exported. There were no incidents of improper waste disposal or overseas shipment of waste for treatment in 2025. The total amount of waste generated by PANJIT Group in 2025 amounted to 1,433.01 metric tons, of which general industrial waste totaled 1,206.88 metric tons (84.22%) and hazardous industrial waste amounted to 226.13 metric tons (15.78%). To improve resource utilization efficiency and lower environmental impact, the total amount of waste recycled and reused by the Group in 2025 was 1,061.32 metric tons in total, accounting for
approximately 74.06% of the total waste, of which, the total amount of hazardous industrial waste reached 154.01 metric tons, accounting for about 68.11% of the total hazardous industrial waste.
Waste Reduction
PANJIT actively carries out waste reduction management, and strengthens employees' awareness of waste recycling through nonscheduled awareness programs. All factories also collaborate with recycling companies to convert waste liquids into industrial raw materials, continuously improving waste recovery and circular resource utilization. Waste reduction measures and achievements include the followings.
Biodiversity
PANJIT Group is committed to proactively managing impacts on marine and terrestrial
biodiversity throughout the entire lifecycle of its operations by applying the mitigation hierarchy of avoidance, minimization, restoration, and offsetting. We will work with our supply chain partners to jointly maintain the integrity of the ecosystem and ensure a balanced approach to business development and the sustainable use of natural resources. To identify potential biodiversity risks and formulate corresponding measures, the Group has referenced the Taskforce on Naturerelated Financial Disclosures (TNFD) framework and conducted the identification of priority locations
and assessments of risks and opportunities at the major production sites of PANJIT, PANJIT (WUXI), and PYNMAX using the LEAP approach in 2025.
To date, no significant incidents or systemic risks that have caused material impacts on
surrounding ecosystems have been identified.
The Company continues to strengthen the management of key environmental aspects to
mitigate potential risks. However, the Company still adopts the precautionary principle by continuously strengthening the management of key environmental aspects, including water resources, wastewater quality, chemicals, and waste. Naturerelated risks and opportunities are also integrated into the annual objectives and investment assessments.
Summary of the existing environmental actions and achievements:
‧Habitat restoration achievements:
The annual “Love the Earth- Tree Planting Activity” is held regularly. It is expected to increase carbon sequestration by 12,000 kg annually, directly contributing to the restoration of coastal wetland ecosystems.
‧Low-carbon lifestyle promotion:
Through the implementation of the “Monthly Healthy Vegetarian Day”, the Company reduces meat consumption and indirectly alleviates pressure on natural habitat conversion associated with livestock farming (one of the major causes of deforestation), and integrates environmental responsibility into employees' daily lives.
‧Information disclosure:
Gradually adopt the TNFD (Taskforce on Nature-related Financial Disclosures) framework to enhance transparent disclosure.
‧Strengthening supply chain management:
Establish a Supplier Code of Conduct and incorporate biodiversity and deforestation-free requirements into supplier assessment to require suppliers to comply with environmental standards and practices.
Use of Energy
The energy consumption at PANJIT Group includes purchased electricity, gasoline, diesel, and liquefied petroleum gas (LPG), among which, purchased electricity is the major energy used, accounting for 97.51% of total energy use, which is used for process power, air compressors and other electrical facilities. The remaining energy consumption is used for company cars, forklifts and cafeterias. The total energy consumption in 2025 was 419,155.81 GJ.
To effectively manage energy use and improve energy performance, PANJIT implemented the ISO 50001 Energy Management System in October, 2022 and has continued to maintain third-party validation, demonstrating the stability and effectiveness of its energy management system. To further enhance internal employees' energy management awareness, an internal auditing course on the ISO 50001 energy management system was arranged in 2025, with a total of 37 participants. Although the ISO 50001 energy management system has not been implemented in PANJIT (WUXI) and PYNMAX yet, the Group's energy management policy is still followed and process optimization and energy conservation as well as carbon reduction management are still implemented through internal management mechanisms. In compliance with regulatory requirements, the Group has completed the installation of electricity meters and flow meters for major-consuming equipment and established a real-time monitoring system to enhance energy efficiency and improve the accuracy of energy management.
Note:
1.
PANJIT's energy disclosure and monitoring data for 2023, and 2024 are primarily derived from the Gangshan Factory, and from 2025 onwards, it covers PANJIT's operational sites in Taiwan.
2.
PYNMAX's purchased electricity data for 2023 and 2024 included PANJIT Yongan Factory. Starting in 2025, based on the principles of greenhouse gas inventory, the purchased electricity data is allocated on a proportional basis.
3.
Source of data: Purchased electricity (kWh) was based on the data listed in the monthly electricity bills of Taiwan Power Company; data for the liquefied petroleum gas (kg), gasoline (liter), and diesel (liter) were mainly based on the invoice documents. In the data for PYNMAX in 2023 and 2024, except for purchased electricity, all data were estimated based on the total annual payment amount, and the average unit price information was sourced from the official website of CPC Corporation, Taiwan.
4.
In the 2023 energy conversion coefficients: Electricity=3,600 kJ/kWh; diesel(Taiwan)=8,400 kcal/L; diesel(China)= 10,200 kcal/kg; gasoline(Taiwan)=7,800 kcal/L; gasoline(China)=10,300 kcal/kg(density =0.7475kg/L); liquefied petroleum gas(Taiwan)=6,635kcal/L (density=0.55L/kg); liquefied petroleum gas(China)= 10,200 kcal/kg；1cal=4.184J
5.
In the 2024 energy conversion coefficients, the Taiwan plant made calculation based on the lower heating value of gasoline for vehicles in 2024 at 7,609 kcal/L, and the lower heating value of diesel for vehicles at 8,642 kcal/L, as announced by the Ministry of Environment on February 13, 2025. Other unchanged conversion values remained the same as in 2023.
6.
In the 2025 energy conversion coefficients, the Taiwan plant made calculation based on the lower heating values of gasoline for vehicles in 2025 at 7,586 kcal/L, diesel for vehicles at 8,636 kcal/L, liquefied petroleum gas at 5,993 kcal/L, and NG1 natural gas at 8,067 kcal/m3, as announced by the Ministry of Environment on February 10, 2026. Other unchanged conversion values remained the same as in 2023.
7.
In PANJIT's self-generated and self-consumption power generated data, the 2024 figure is an estimated value (estimated based on the formula: Installed capacity x effective sunshine hours (hours/day) x 365 days x system efficiency); the 2025 figures are based on actual electricity meter readings; the data for PANJIT WUXI's self-generated and self-consumption power generation data are all based on actual electricity meter readings.
Conservation Measures and Performance
In accordance with the Ministry of Economic Affairs' Regulations on Setting Energy Conservation Objectives and Execution Plans for Energy Users, PANJIT Group's Taiwan factories have implemented energy conservation plans, setting an average annual electricity saving rate of over 1% as the target. In 2025, two energy-saving projects were completed, including the replacement of four old air compressors and replacement of LED lights in the factories, resulting in a total annual electricity saving of approximately 911,280 kWh/year (approximately 3,280.60 GJ), equivalent to a reduction of approximately 431.95 tCO2e in greenhouse gases. In recent years, PANJIT (WUXI) has also actively implemented energy conservation and carbon reduction projects, including solar power generation and optimization of old air compressors.
Note:
1.
The electricity conservation data was calculated in accordance with the equipment specifications and usage scenarios based on (The difference in equipment electricity meter readings before and after the improvement) x annual operating hours x number of units.
2.
The calculation of GHG reduction was conducted by using the 2024 electricity carbon emission factor of 0.474 kg CO2e/kWh announced in 2025 for conversion.
3.
Energy conversion factor: Electricity = 3,600 kJ/kWh.