Chroma ATE Inc. established the "ESG Office" and the "Chroma Foundation" in 2022. We drive sustainable growth and build a green Chroma through the implementation of initiatives in five dimensions: technology and products, supply chain and manufacturing, friendly and healthy workplaces, social impact, and a sustainable environment. In 2023, according to the FTSE Russell Green Revenues Classification System, Chroma's green revenue accounted for 48% of the parent company's overall revenue, an increase of 6.2% compared to 2022. Chroma's efforts in sustainability have also been increasingly recognized by the market. In terms of ESG ratings, Chroma received its first MSCI rating in 2023, achieving "BBB". Our Company scored 42 (out of 100) in the 2023 S&P Global Corporate Sustainability Assessment (CSA Score as of 30/06/2024), reflecting an improvement of 11 points over the past year and placing it in the 93rd percentile in the Electronic Equipment, Instruments, and Components industry. Additionally, Chroma's FTSE Russell ESG rating significantly improved by 0.5 points, reaching a score of 3.3 (out of 5.0). Our outstanding performance was further recognized by Institutional Investor Research with six major award categories for the Asia's Most Honored Companies Awards in 2023, ranking among Asia's best (ex-Japan).

As global climate issues become ever more dire, risk management for enterprises has become more pivotal. Since 2022, Chroma has implemented a TCFD (Task Force on Climate-Related Financial Disclosures) to analyze climate change risks and corresponding responses, and to formulate relevant strategies and plans. The aim is to achieve "net-zero emissions by 2050." As a hightech, low-polluting, and low-energy consumption leading manufacturer of test and measurement instruments, Chroma is committed to helping customers reduce their carbon footprints and plays a "carbon handprint" role in the industry chain. In 2023, the sales of green products also helped customers reduce carbon emissions by 104,000 tCO₂e, an increase of 73% compared to 2022. In recent years, Chroma has launched an internal "Green Chroma Label" program to incentivize employees to develop equipment that aids users in curbing carbon emissions. This initiative fosters environmentally conscious design practices across all phases of the product lifecycle, diminishes the ecological footprint, amplifies green dividends, and fosters pos itive environmental cycles.

As responsible corporate citizens, our focus extends beyond environmental stewardship to encompass human-centric values. "Employees are our most invaluable assets and collaborative partners." Chroma has established human rights policies and implemented key initiatives guided by international principles. We foster diverse internal communication channels to gain an understanding of employee sentiment. In 2023, Chroma conducted its inaugural employee satisfaction survey, revealing superior performance metrics compared to industry peers. Since 2022, Chroma has rigorously carried out occupational health and safety protocols across its facilities and achieved ISO 45001:2018 Occupational Health and Safety Management System certification in 2023. In terms of corporate governance, Chroma appointed a female director in 2023, demonstrating its commitment to board diversity. In light of pervasive information security threats that are of increasing concern among major technology companies, Chroma established the Information Security Management Office in 2022. This unit orchestrates the dissemination of information security policies and resource allocation in strict adherence to ISO 27001 information security standards. On social impact, Chroma and Chroma Foundation are actively engaged in diverse community initiatives centered on four core pillars: "scientific education," "humanities and arts," "environmental sustainability," and "community outreach". By synergizing corporate competencies with societal welfare objectives, Chroma fosters virtuous cycles of social welfare and sustainable growth.

As we step into 2024, Chroma is preparing to celebrate its 40th anniversary. The old Chinese adage "forty and wise" (四十而不惑) reflects the rich reservoir of expertise and technological prowess amassed during our four-decade journey, laying the cornerstone for Chroma's formidable presence in the field of test and measurement instruments. "Sustainable Growth" is a core value that resonates at every annual global conference. It serves as the cornerstone of Chroma's brand strategy and is championed by our executives in Taiwan and around the world. Looking ahead, amidst successive waves of dynamic industry applications, we are witnessing the proliferation of generative AI technologies, the semiconductor industry's resurgence driving evermore powerful computing and peripheral component applications, as well as the robust demand for electric vehicles in recent years. Chroma remains committed to resilience and continuous innovation, forging ahead with the development of more low-carbon, energy-efficient green products. Our aim is to pass on the knowledge garnered from each period of industrial development to the next generation. Additionally, we maintain close and fruitful relationships with our customers, aiding them in overcoming obstacles and jointly reducing carbon footprints. Together, we are dedicated to fulfilling our corporate social responsibility and contributing to a sustainable future for the land we call home.

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