Climate Change Management

Ongoing Items	2025 Target Achievement & Performance			Short-Term Targets (Within 3 Years)	Medium- and Long-Term Targets (Over 3 Years)
Ongoing Items	Target	Actual Results	Achievement Status	Short-Term Targets (Within 3 Years)	Medium- and Long-Term Targets (Over 3 Years)
Parent Company Individual GHG Emission Intensity (vs. Individual Base Year 2022)	-11%	-25%	Achieved	-43%	-50%
Greenhouse Gas Inventory	Verification of consolidated entities	Completed	Achieved	Complete Scope 3 inventory for consolidated entities	Complete supply chain net-zero transition
IFRS Sustainability Disclosure Standards Implementation Plan	Establish project task force	Completed	Achieved	Prepare sustainability chapter in annual report	—
Water Consumption Reduction	660 MT/year	12,515 MT*	Achieved	680 MT/year	700 MT/year
Energy Saving	960 MWh/year	2,244 MWh	Achieved	980 MWh/year	1,000 MWh/year
Waste Reuse / Recycling	175 MT/year	177 MT	Achieved	180 MT/year	185 MT/year
Internal Carbon Pricing System	Integrate into management reports	Completed	Achieved	Build carbon accounting management system	Launch Science Based Targets (SBTi); achieve 15% self-supplied green power ratio by 2030
Internal Carbon Pricing System	Integrate into management reports	Completed	Achieved

Regarding the governance of climate change issues, SEEC convenes meetings of the Board of Directors and the Sustainable Development Committee annually, during which the Chief Sustainability Officer reports on the implementation and tracking of forward-looking sustainability plans and key performance indicators. Through the collaborative efforts of the Sustainable Development Committee, the Office of Sustainable Development, and the functional teams under the Executive Secretariat, the Company identifies enterprise risks. Concurrently, based on the Company's sustainable development direction, and taking into account the overall environment, material topics of concern to stakeholders, and industry trends, corporate sustainability policies and goals are formulated. The Company submits reports to the Board of Directors on the "Execution Status of Sustainable Development" once a year and the "Risk Management Operations Status" once a year.

The functional teams under the Executive Secretariat of the Sustainable Development Committee are responsible for the preliminary identification of climate-related risks and opportunities. Subsequently, the Office of Sustainable Development further evaluates each risk and opportunity based on the latest laws and regulations, internal company rules and operational procedures, and business conditions, formulating corresponding response strategies and monitoring mechanisms accordingly. By effectively integrating resources, prediction and response capabilities are enhanced, climate impacts are minimized, and organizational resilience is demonstrated.

Furthermore, to ensure the effective implementation of climate-related risk and opportunity management, the Company integrates sustainability and climate-related performance indicators into its remuneration policy. Through concrete incentive mechanisms and evaluation systems, climate change mitigation and adaptation progress are driven. These performance indicators are incorporated into senior executive compensation policies to motivate leadership to actively contribute to the achievement of relevant goals.

Regarding climate-related risks and opportunities, SEEC has established an integrated assessment model. The Sustainability Report Preparation Team evaluates and analyzes various sustainability topics, convening climate-related risk and opportunity identification meetings annually. Led by Executive Vice President and Chief Sustainability Officer Chin-I Shi, the functional teams under the Executive Secretariat evaluate the potential business impact of each risk and opportunity item based on its "probability of occurrence" and "degree of financial impact." By analyzing the relevance of each risk and opportunity to Company operations, a list of risk and opportunity items aligned with the Company's operational scenarios is developed. After comprehensively considering their probability of occurrence and financial impact, the material climate-related risks and opportunities expected to impact the Company's outlook are summarized below:

Type	Issue	Business Revenue	Cost/ Expense	Net Profit	Capital Expenditure	Cash Flow
Risk	2050 net-zero emissions requirements	－	Increase	Decrease	Increase	Decrease
	Compulsory reporting obligations	－	Increase	Decrease	Increase	Decrease
	Rising fuel prices	－	Increase	Decrease	－	Decrease
	Taiwan carbon fee	－	Increase	Decrease	－	Decrease
	Changes in customer requirements	－	Increase	Decrease	－	Decrease
	Low-carbon technology transition	Increase	Increase	Increase	Increase	Decrease
Response Measures
Conduct greenhouse gas and carbon footprint inventories and assurance. Implement internal carbon pricing. Develop an energy management system to collect and control reduction of factory emissions such as wastewater and electricity usage. Set up a dedicated unit to assess climate risks and allocate future expenditures for energy-saving and carbon reduction initiatives. Plan carbon reduction targets and regularly report progress to the Board of directors. Plan to install solar panels at each factory to achieve self-sufficiency.

Type	Issue	Business Revenue	Cost/ Expense	Net Profit	Capital Expenditure	Cash Flow
Opportunity	Construction of green factories	Increase	Increase	Increase	Increase	Decrease
	Opportunities for low-carbon products and services	Increase	Increase	Increase	Increase	Decrease
	Entry into new markets	Increase	Increase	Increase	Increase	Decrease
	Company's sustainable competitiveness	Increase	Increase	Increase	Increase	Decrease
	Using low-carbon energy	－	Decrease	Increase	Increase	Decrease
	Using more efficient production	－	Decrease	Increase	Increase	Decrease
Response Measures
Establish a new green energy brand to provide comprehensive solutions for customers. Improve and optimize factory equipment, such as updating lighting systems to automatic sensor switches and replacing high-energy-consuming equipment (air conditioning systems, air compressors, and heating furnaces). Optimize production processes by using variable frequency drives or amorphous transformers to reduce power loss, consolidating production, and batch processing to enhance production efficiency. Additionally, exchanging scrap materials with suppliers can reduce procurement costs and waste disposal volumes.

Climate Change Management

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