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”,
PANJIT Group refers to the Task Force on Climate-related Financial Disclosures (TCFD) Framework and the recommendations on the disclosure of TCFD 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.

CLIMATE CHANGE ADAPTATION AND ACTIONS

Water Resources Management

The main water use at PANJIT is tap water, and the water source is from Agongdian Reservoir. 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, and the results show that they are in “lowrisk” areas. The company will also continue to pay attention to the water resource risks for timely establishment of the corresponding strategies. The water withdrawal intensity in 2022 was 0.03432 million liters/million revenue, a decrease of 12.20% compared with the previous, which was mainly because of the control of process wastewater recovery.

Waste Management

The waste generated in PANJIT is divided into general industrial waste and hazardous industrial waste. In 2022, the amount of waste totaled 547.73 tons, a decrease of about 32.7% compared with
the previous year. The total amount of general industrial waste was 466.71 tons (account for 85.21%) while that of hazardous industrial waste amounted to 81.02 tons (accounting for 14.79%).
Treatment of waste is compliant with legal regulations, and the waste removal and disposal are entrusted to qualified waste disposal service providers. Contracts are signed and declarations are
submitted online. The waste disposal service providers are equipped with GPS to track the routes for waste removal and disposal, and the vehicles are followed for inspection of the treatment
status on a regular basis every quarter. The e-waste and waste liquids are also handed over to professional recycling companies for the recovery and processing. Waste for recycling includes
general resources and scraps. The packaging materials in the plant are reduced by changing cartons into iron boxes so as to recycle for use and reduce the use of cartons and disks. PANJIT does not import or export hazardous waste listed in the Basel Convention. There was no improper disposal or transport of waste to foreign countries for processing in 2022.
To increase the efficiency of resource use and lower the environmental load, the total amount of waste recycled for reuse in 2022 amounted to 529.98 tons, accounting for 96.76% of total waste.
Hazardous waste recycled totaled 66 tons, accounting for about 81.46% of the total amount of hazardous waste. Measures taken and achievement status are as follows.

ENERGY CONSERVATION MEASURES AND PERFORMANCE

PANJIT works in line with the Ministry of Economic Affairs’ "Energy users set energy conservation goals and implementation plan" Project to promote the energy conservation plans, and a series of
energy conservation actions with the goal of reaching more than 1% of average energy saving rate between 2015 and 2024. As for as PANJIT is concerned, the main energy use is from purchased
electricity. In 2022, two energy conservation projects were implemented targeting at electricity, and the total energy saved reached 849,524 kWh/year, a reduction of GHG by approximately 420.51 TCO2e.

Note:
1. The electricity conservation data was calculated in accordance with the equipment specifications and usage scenarios.
2. The calculation of GHG reduction was conducted by using the 2022 electricity carbon emission factor of 0.495 kg CO2e/kWh for conversion.