Environment Sustainability

I. Policy： to face the threats of climate change and environmental degradation, Utechzone has established concrete objectives, methods, and solutions for environmental protection and energy-saving, working diligently to promote the preservation of Earth’s precious natural resources, increasing the environmental awareness of our employees, encouraging a culture of environmental protection, and implementing environmental protection and energy-saving measures.

II. Goal： to reduce carbon emission by 10%, compared to 2022 in 2030, reduce water consumption by 3%, compared to 2022 in 2030.

III. Environmental protection and energy-saving measures and progress

1. Energy-saving practices：

Items	Energy-saving Measures
Air-conditioning saving	Air-conditioning control measures, temperature setting should not be lower than 26 degrees. Adding fans in the plant to enhance circulation and cooling efficiency.
Lighting saving	Replacement of lamps with energy saving and environmentally friendly lighting equipment. Switch off when leaving concept promotion and regular inspection by special personnel to enhance implementation.
Paperless promotion	Promote electronic forms. Replace business machine with double-sided printing function and reduce paper consumption.

※ The greenhouse gas inventories for all company facilities have been conducted and disclosed for the past two years as follows:

In 2023, the total greenhouse gas emissions reached 1058.65 tons CO2e, marking an increase of 3.3% from 2022.

Year	2022	2023	Carbon reduction results
Category	CO2 emmissions(T)	CO2 emmissions(T)	Carbon reduction results
Category 1 Direct greenhouse gas emissions	185.7	216.5	16.6%
Category 2 indirect greenhouse gas emissions	863.1	768.74	-10.9%
Total emmissions	1048.8	985.24	-6.1%

Note 1: 2022 is set as the baseline year for emission level.

Note 2: direct emissions (Category 1, i.e., emissions directly from sources owned or controlled by the company), and energy indirect emissions (Category 2, i.e., indirect greenhouse gas emissions resulting from purchased electricity).

2. Water-saving practices：

Items	Water-saving measures
Water-saving devices	All equipment using water in the plant has been replaced with equipment certified with the Water Efficiency Label
Advocacy	Advocate concept of water conservation

※ Water consumption, 2022~2023 (in kiloliter)：

Year	Factory	2022	2023
Water Consumption(in kiloliter)	Shulin Factory	6,729	6,597
Water Consumption(in kiloliter)	Yingge Factory	2,706	2,763
Total Water Consumption(in kiloliter)		9,435	9,360

3. Waste management：
Utechzone is a manufacturer of automatic optical inspection (AOI) systems. The primary manufacturing processes are the assembly and testing of mechanical devices, which do not produce toxic waste as byproducts. The wastes are managed as follow：

Items	Management method
Industrial wastes	Contracted to waste disposal companies with Grade A or B certifications
General wastes	Contracted to professional cleaning companies
Recycling	Contracted to professional cleaning companies

3. Waste management：
Utechzone is a manufacturer of automatic optical inspection (AOI) systems. The primary manufacturing processes are the assembly and testing of mechanical devices, which do not produce toxic waste as byproducts. The wastes are managed as follow：

Items	Management method
Industrial wastes	Contracted to waste disposal companies with Grade A or B certifications
General wastes	Contracted to professional cleaning companies
Recycling	Contracted to professional cleaning companies

※The total mass of waste, 2022~2023(in kilogram)：

Year	Factory	2022	2023
General industrial waste	Shulin Factory	10,500	9,000
General industrial waste	Yingge Factory	6,000	6,500
Hazardous industrial waste	Shulin Factory	0	0
Hazardous industrial waste	Yingge Factory	0	0
total weigh of waste		16,500	15,500

Note: No hazardous waste is generated during the production process

IV. Climate change management：in the Global Risks Report published annually by the World Economic Forum, the climate-related risks within the environmental risk category have been defined as the most impactful and most likely potential risks. As the speed of climate change is becoming faster than expected, the frequency and severity of natural disasters are also increasing at an alarming rate. Responding to the threats of climate change is now one of the top priorities for Utechzone. The company has begun to identify and assess risks associated with climate change in 2020 to establish response measures from four aspects including "governance", "strategy", "risk management" and "indicator & target" in order to reduce possible impact caused by climate change.

Aspect	Action
Governance	Company’s administrative and financial department is responsible for climate risk assessment and management while also in charging of measures establishment and promotion. Report to the board of directors of sustainable development status including response measures for climate change on a yearly basis.
Strategy	Identify the impact on organization operation, strategy and financial planning from risk and opportunity related to climate change.
Risk Management	Plan relevant response measure based on risk and opportunity from climate change risk assessment.
Indicator & Target	Conduct annual examination toward greenhouse gas (category 1 & 2) sources and emissions while also carry out major management accordingly. In 2030, carbon emission will be reduced by 10% compared with 2022.

※Climate change assessment and response measures

Category	Risk factors	Time frame	Potential risks	Opportunities	Response measures
Policy and legislation	GHG control legislation	Intermediate	Total carbon emission, carbon emission trading, carbon fees, and taxes will increase operational costs for the company	Participate in carbon emission/renewable energy trading	Stay attentive to legislative actions Promote GHG reduction measures
Physical risks	Typhoons, flooding	Short term	Impacting manufacturing processes and delivery progress Damaged plant and equipment lead to increased operational costs	Increase the defense against natural disasters	Initiate natural disaster response measures, remind employees of precautions The plants have water pumps and flood retention pools that automatically pump the water out, lowering the risks of flooding in the plant.
Physical risks	Rising temperature	Short term	Increased power usage lead to rising operational costs and carbon emission	Promote the use of energy-saving products	Ventilation fans are installed in the plants to improve air circulation and cooling efficiency, reducing energy usage and carbon emission.