PAIHO ESG

Following discussions in cross-functional team meetings of the Sustainable Development Committee and with senior executives, our company's updated greenhouse gas reduction policy and targets were announced by the CEO on January 1, 2024. Using 2023 as the base year, we aim to reduce GHG emissions by 20% by 2030 and achieve net-zero carbon emissions by 2050.

To progressively achieve the net-zero carbon emissions target by 2050, the Company, in the first year following the policy release, has implemented the following strategies and measures in a phased manner. Greenhouse gas emissions are reported separately for Scope 1 and Scope 2. The Company holds ad-hoc meetings with relevant departments to discuss and review feasible initiatives. On November 7, 2024, the Board of Directors was presented with a report on the implementation status and outcomes of this year’s reduction strategies as outlined below:

1. Improve Factory Equipment
   Replace traditional lighting with energy-efficient LED fixtures or solar-powered outdoor lights and adjust lighting configurations in each area; prioritize evaluation of energy-saving benefits when purchasing machinery and equipment. In 2024, the manufacturing units have gradually replaced some of the traditional lighting fixtures.
2. Process Optimization
   The operation of machinery is adjusted or existing machinery is optimized by replacing outdated equipment with energy-efficient models. Scheduling and control measures are implemented to minimize losses. In 2024, process efficiency improvements were carried out by increasing the utilization of injection molding clamp width. Additional chilled water piping was installed to enhance air-conditioning efficiency. Evaluations were also conducted on boiler process optimization, as well as on the replacement schedule for aging air-conditioning units and company vehicles.
3. Administrative Management
   Conduct regular energy conservation and carbon reduction education training, consistently promote and display energy saving and carbon reduction labels, strengthen supervision and control, while implementing process and standardization of operations. In 2024, the manufacturing units implemented centralized use and power management of machinery and equipment without affecting production schedules. At the same time, each manufacturing unit established energy-saving KPI targets to ensure effective target management.
4. Renewable Energy Usage
   Install solar power systems on the factory grounds to gradually increase the amount of renewable energy used. As of the end of December 2024, a total of 867 Renewable Energy Certificates (T-REC) have been obtained.
5. 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.
6. Promote Circular Economy
   Converting textile waste into Solid Recovered Fuel (SRF) within the factory to increase the rate of waste reuse. The waste recycling rate in 2024 was maintained at over 80%.