Indicators and Targets-Taiwan Paiho ESG

Indicators and Targets

Greenhouse Gas Reduction Target
Using 2023 as the base year, the Company aims to reduce its greenhouse gas emissions by 20% by 2030 and achieve net-zero carbon emissions by 2050.

Strategy	Implementation Status
Continue to Implement an Energy Management System	Conducts annual verification of the ISO 50001 Energy Management System and aligns with the requirements of the Bureau of Energy by setting an annual energy-saving target of a 1% reduction in electricity consumption.
Introduction of Renewable Energy	As of 2024, Paiho has installed a total of 2,392.94 kWp of solar photovoltaic systems. In 2024, the total solar power generation reached 2,023,881 kWh.
Renewable Energy Certificate	As of 2024, Paiho Taiwan has obtained a cumulative total of 1,112 Renewable Energy Certificates (T-REC), including 867 T-RECs acquired in 2024 alone.

Promote Circular Economy
The units in charge of raw material development and product research and development implement environmentally friendly practices such as yarn recycling, the use of recyclable and reusable materials, and the recycling and reuse of waste yarn. This is done to develop low carbon products. In addition, there is an increased focus on the reuse of textile waste and sludge, which actively reduces the carbon footprint of our products and operations.

1. Develop environmentally friendly yarn products every year. It was verified by a third-party RCS certification in 2024.
2. Every year, we develop reusable, recyclable, or natural raw materials. In 2024, a total of 10 products were developed.
3. In 2024, a total of 221 recycled material product lines were developed, accounting for 68% of all new developments. These products have been showcased in the Company’s footwear and apparel catalogs.
4. By 2024, the recycling rate of textile waste will reach 100%.

Developing Green Products
Our Company focuses on developing environmentally friendly products through various strategies. These include the development of biodegradable injection molded products, the use of recycled nylon for injection molded products, and the use of environmentally friendly and recycled raw materials such as recycled PET yarn in our product manufacturing process. In 2024, the procurement of eco-friendly yarns was maintained at over 15%, with a target to increase usage to 60% of eco-friendly yarns in key customer Teflon yarns by 2030.

Digital Transformation and Marketing Promotion
Create a dedicated catalog for eco-friendly materials and promote it through a “virtual sample and online display platform” to minimize the need for physical samples and inventory. This will offer customers a wider range of sustainable options for their purchases.

1. In 2024, participated in 13 domestic and international exhibitions to promote environmentally friendly materials.
2. In 2024, a total of 110 virtual samples were developed and published on the online display platform.

Supply Chain Collaboration
Paiho utilizes its corporate influence to encourage suppliers to conduct basic carbon assessments, independently evaluate Scope 1 and Scope 2 emissions, and progressively expand the number of invited suppliers each year, fostering collective efforts to decrease carbon emissions.

1. In 2024, 11 suppliers were invited to participate in a simplified carbon inventory. Among them, four suppliers provided greenhouse gas inventory certificates or reports, three cooperated in conducting the simplified carbon inventory, and one supplier has continuously participated in the simplified carbon inventory for two consecutive years.
2. We expect that by the end of 2025, 15 suppliers will have been invited to conduct a simple carbon inventories.
3. We expect that by the end of 2030, 20 suppliers will have been invited to conduct a simple carbon inventories.