In response to the severe climate changes that are challenging our planet, we have set several different targets in three of the aspects of total environmental management: climate change, green production and design, and the prevention of pollution. By quantifying GHG and keeping an inventory of emissions in accordance with the ISO 14064-1:2018 standard, we have further established energy conservation measures. Additionally, by passing the ISO 14001:2015 environmental management system (EMS), we standardize the operation of all pollution sources to improve environmental protection in compliance with all the laws and regulations.

As a high-tech, low-emission, and low-energy consumption business, "net zero emissions" is a sustainability issue of constant concern to Chroma. We want to become a "carbon handprint" in the industry chain. A carbon handprint refers to action that is recognized as positive towards climate change and the reduction of carbon emissions, as opposed to a carbon footprint. The effect of a carbon hand-print is far reaching. We offer regenerative tests and measurement solutions to help customers reduce carbon in manufacture and production. Carbon handprint processes contribute to global efforts to halt climate change. Over the past three years, the regenerative test and measurement solutions sold by Chroma have effectively reduced carbon emissions by nearly 140,000 tCO2e. This is about the same amount as 359 Daan Forest Parks would absorb. Calculations based on EU Taxonomy show the 2022 green revenue of Chroma HQ accounted for 41.8% of overall revenue. Introduction of the "Chroma Green Label" encourages employees to develop and produce new ESG-efficient products, to digitize equipment and reduce energy consumption, and to initiate the design of products that have low environmental impact at all stages of their life cycle.

On our move towards green production we started with green design and then went on to production, office environment checks, and process improvements. We are now moving from low-carbon to net-zero.

Employees are our most important corporate asset. They are our partners and we value the physical and mental health of every one of them. We have built multifaceted internal communication channels based on a "treating employees as family" concept, and offer a range of friendly benefits that are better than any of the statutory requirements. In 2022 we implemented the ISO 45001 occupational health and safety (OH&S) management systems to lower the likelihood of work-related injury and ill health and to build a safe and reliable workplace environment for our employees. We have also established a well-planned education and training system for multifaceted development to enhance workforce competence and competitiveness. This ensures that each employee is the right person in the right place, enabling everyone to fulfill their potential and demonstrate their value.

In addition to cultivation and development of the industry and leading emerging markets to realize innovation, we also actively implement education in science, technology, engineering, and mathematics (STEM) and engage in many social welfare activities. In our efforts to encourage STEM education in the younger generation, we participate in the "Taiwan Railways of Popular Science" to foster and develop potential sci-tech talent. Our Premier University Plan maintains active technology exchange with graduate students at top local universities. This allows us to disseminate practical R&D knowledge in electrical and electronic engineering that enables the development of expert talent. Senior under-graduates also make early connection with the professional market. The prize presentations at the 2022 1st Chroma Precision Machinery and Measurement Technology Paper Awards encourage young students to engage in test and measurement and the R&D of precision engineering. It facilitates collaboration between industry, government, academia, and research institutions and promotes improvement and innovation in precision machinery and measurement technology. In a spirit of giving back to society some of what we have taken, we organize charitable activities to collect usable material and goods for reuse and donate them to those in need. We support protection of the ocean and engage in "Coastal Clean-up" and the promotion of environmental education by real action. Chroma integrates and donates resources to society to contribute and extend our influence to social value.

We began publishing an annual CSR report in 2014 and started a carbon inventory seven years ago. We set 2022 as our "ESG year zero" and established the ESG Office and the Chroma Cultural and Educational Foundation. In doing this we hope to build a green Chroma in line with the five major aspects of sustainable development: technology and product, supply chain and manufacture, a friendly and healthy workplace, social influence, and a sustainable environment. In August 2022, the chairman personally led all senior officers in a vow to maintain their ESG responsibilities at the ESG Kick-off Meeting. ESG is the responsibility of everyone and sustainable operation is essential for any publicly offered company. Chroma, which has a net worth of more than NT$10 billion, distributes products worldwide to create value and resolve pain points for customers. This has won us trust and many longterm partnerships worldwide. It is our responsibility to instill ESG in each employee and to contribute to society and the environment as a corporate world citizen.