The Company mainly uses purchased electricity and fuels such as natural gas for the cafeteria, dormitory and health center; gasoline for company cars and diesel for generators.

Reference for conversion factors: MOEA Bureau of Energy - Heat Content of Energy Products (Updated on May 15, 2020)

• Electricity: 860,000 kcal/kWh
• Liquefied Petroleum Gas (LPG): 12,062 kcal/kg
• Natural Gas (NG): 9,000 kcal/m³
• Gasoline: 7,800 kcal/L
• Diesel Oil: 8,400 kcal/L、1 kcal =4,186 j

Note1: Calculated based on contracted capacity and power generation.
Note2: Renewable energy consumption data has been recorded since July 2022.

Chroma Headquarters (including the Huaya Plant), Hsinchu Branch, and Kaohsiung Branch are located in the Huaya Science Park, Hsinchu Science Park, and Nanzih Processing Zone, none of which are in environmental protection areas. The water supply for these facilities is 100% municipal tap water and is not from protected water sources. Chroma factory processes primarily involve assembly and testing and there is no significant demand for large amounts of water. Main water usage is for employee activities and facilities around the premises. Water is used for air conditioning, but has no noticeable impact on water resources or the ecological water environment. The generated domestic sewage is processed by appropriate sewage processing facilities or discharged directly into the sewage system pursuant to the law. Nevertheless, in addition to conserving electricity, we believe that water is also a precious Earth resource. Therefore, reducing water usage and enhancing water resource utilization are equally important tasks. To implement water resource management, the headquarters building has a rainwater harvesting system. After undergoing sedimentation treatment, the collected rainwater is utilized for gardening and irrigation purposes. This saves water and makes its use more efficient.

Water consumption and water use intensity at headquarters, the Huaya Plant and the Hsinchu and Kaohsiung Branches, over the past 3 years.

Total Water Withdrawal and Total Water Consumption

We mainly use purchased electricity, and electricity conservation is a Company priority for carbon reduction. Various energy-saving measures have been implemented through the establishment of environmental health and safety objectives, including air conditioning energy efficiency improvements at headquarters (including the Huaya Plant), and the replacement of energy-efficient lighting fixtures at the Hsinchu and Kaohsiung branches. The most significant improvement was observed at the Kaohsiung branch.

In 2023, process improvements and smart production methods enhanced energy efficiency and carbon reduction. This resulted in a total carbon reduction of 1,696 tCO₂e。

1. Reduce energy consumption due to aging processes
(1) Analyzing burn-in monitoring data and generating monthly analysis reports to promptly adjust burn-in operating hours, thereby reducing energy loss.
(2) Use energy-efficient equipment in the product aging process for power measurement and to monitor instrument products using smart monitoring which also reduces energy consumption.
(3) Utilizing product recycling capabilities for mutual power supply and burn-in loading to reduce electricity usage in aging processes. (Model 61815 & 62180D Series)
(4) Implementing a three-color light monitoring module at testing stations to record idle times and reduce electricity wastage.
(5) Installing flow monitoring devices on compressed air pipelin es and establishing data databases and monitoring pages to adjust settings based on monitoring data to save electricity.

2. Process Improvements
(1) Implement production environment monitoring to ensure process environmental quality (clean rooms, product aging rooms, optical product testing rooms).
(2) Introduce labor-saving equipment for product packaging operations, improve ergonomics, and reduce manual handling to ensure occupational safety.
(3) The SMT/DIP process has been enhanced through the introduction of intelligent electronic shelves, the establishment of automatic dispensing equipment, the evaluation and implementation of smart SMT storage, installation of DIP automatic soldering machines, and the implementation of full-process logistics production (processing -> plugging -> postsoldering). Improvements have also been made to the single-board testing fixtures in the 62XXX series, optimization of single-machine assembly and packaging times, optimization of system assembly methods, introduction of rail pressing fixtures, MOS automated testing fixtures, high-pressure isolation cover fixtures, manganese-copper semi-automatic grinding fixtures, and improvements in semiconductor and electromechanica l product processes.

3. Smart Production
(1) Analysis of Manufacturing Execution System (MES) data to monitor 8000 assembly hours and 1100 testing hours, enabling real-time adjustment of standard working hours to reduce product production costs.
(2) PCB automatic testing has been optimized to speed the tempo of production.
(3) Intelligent transformation of the whole machine and automation of system testing simplifies analysis.
(4) Optimization of full-machine testing hours.

The Company is in compliance with ISO 14064-1:2018 and is keeping track of the GHG emissions at headquarters and the branches using the inventory process. The Company is also using the GHG inventory system to develop feasible plans for future reduction of GHG emissions. To boost the validity of our GHG inventory information and report as well as the quality of the GHG inventory, an unbiased third-party verification organization has been commissioned to verify our inventory process (after an internal verification process has been completed) to ensure complete inventory procedures and optimal data quality.

The GHG emissions were calculated using the operational control method based on the GWP value as outlined in the IPCC’s Sixth Assessment Report. The seven emissions inventoried include CO₂, CH₄, N2O, CFC, PFCs, SF₆ and NF₃. The quantitative inventory can be divided into two parts:

• Scope 1 comprises direct GHG emissions, which include fixed, process, mobile and fugitive emissions.
• Scope 2 comprises indirect energy GHG emissions from purchased electricity.

As the ISO 14064-1:2018 standard was used as an inventory and quantification base, 2021 is the base year. To ensure effective and accurate monitoring of our GHG emissions, we used GHG intensity (tons of CO₂e/total consolidated revenue (NTD 1,000) as a GHG management indicator.

The scope of the GHG inventory covers:
*Total GHG emissions for categories 1 and 2 from Headquarters and Huaya Plant from 2021 to 2023: (with 2021 as the base year)

(1) Headquarters: Chroma ATE Inc. (excluding the areas rented to DynaScan Technology Corp and Adivic Technology Co Ltd)

(2) Huaya Plant

(3) Hsinchu Branch (excluding the areas rented to the Testar Electronics Corp)

(4) Kaohsiung Branch

GHG emissions for Scope 1 and 2 from 2021 to 2023

As Chroma ATE Inc. was relocated at the end of 2020, the emissions from refrigerant were calculated based on the amount of filled refrigerant. Thus, the Scope 1 emissions were much more than the Scope 2 emissions. As a result, the GHG emission intensity in 2023 decreased by 54.89% compared to the base year of 2021, but increased by 15.19% compared to 2022.

In 2023, the emissions of categories 3 to 6, which include other indirect greenhouse gases, were quantified. This quantification focused on emissions from the disposal of solid and liquid waste. Additionally, emissions from employee shuttle buses were quantified for this year.