Sustainability Report

Reporting Scope

We have expanded the scope of our sustainability reporting in 2021. Reporting on environmental indicators mainly covers our production plants and subsidiaries, which include four plants in Taoyuan, Trend Tone Imaging, Inc. in Hsinchu, and Everlight (Suzhou) Advanced Chemicals Ltd. Reporting on non-environmental indicators covers Everlight Chemical Group, which refers to Everlight’s Taipei headquarters, four plants in Taoyuan, Trend Tone Imaging, Inc. in Hsinchu, Everlight (Suzhou) Advanced Chemicals Ltd. and other subsidiaries in China as well as subsidiaries worldwide.

Report Guidelines and Principles

The content and structure of this report are prepared in accordance with GRI Standards 2016 (Core option) published by the Global Reporting Initiative (GRI) as well as newly added items in 2018 and 2020. Disclosures are also made according to the Sustainability Accounting Standard Board (SASB) standards for the Chemicals industry. Details can be found in the GRI Content Index and SASB Index in the appendix of this report. Financial data is disclosed according to the International Financial Reporting Standards (IFRS). Environment, health, and safety (EHS) performance is disclosed according to internationally-recognized indicators. Other specific significance of quantitative data disclosed in the report will be explained in a separate note.

Overview of Our Sustainability Accomplishments in 2021

Outstanding Business Integrity Earning Wide Recognition

◆ Everlight Chemical ranked among the top 6-20% companies in the 2021 TWSE Corporate Governance Evaluation. The Company also ranked among the top 11-20% of listed companies in the Non-Finance/Electronics category.

◆ Everlight Plant I and Plant III have been awarded the A+ grade for bonded factories by Taipei Customs of the Customs Administration under the Ministry of Finance.

Green Chemistry and Circular Economy Practices

◆ The Company received the 1st and 2nd Green Chemistry Application and Innovation Awards by the Environmental Protection Administration (EPA) of Taiwan.

◆ Everlight Plant III received the 2021 Circular Economy Award by the Taiwan Chemical Industry Association (TCIA).

◆ Everlight Plant IV received another Green Factory Label.

◆ Environmental management performance:
   ● Achieved 1,190 MWh in electricity savings (1.2% of total power consumption), 4,284 GJ in energy savings, and 619 tCO2e in carbon emissions reduction.
   ● Reduced total water consumption by 10% and achieved a water reuse rate (R2) of 86%
   ● Achieved a waste recycling and reuse rate of 69%, with 3.2% of hazardous industrial waste recycled.
   ● Achieved a greenhouse gas emissions intensity of 8.9 GJ per NT$ million in output value, representing a reduction by 7% from 2020.
   ● Achieved an atom economy of 67.1%.

Community Engagement and Industry-Academia Collaborations

◆ Everlight Plant II received the high distinction award for its participation in the Taoyuan City River Adoption Program for Businesses.

◆ Each of our plants continues to support elementary schools and high schools in local communities through annual donations.

◆ The Company established the Everlight Award for Green Chemistry Research to honor the work of outstanding researchers in the field.

◆ The Company provides access to the Global Kids Junior Monthly and Global Kids Monthly magazines by the Commonwealth Publishing Group for 21 elementary schools in rural Taoyuan.

Green Procurement Practices and Corporate Responsibility

◆ The Taipei headquarters and all Everlight plants received green purchasing awards from the local government.

◆ All four of Everlight’s plants in Taiwan have passed follow-up audits for the Bluesign certification.

Efforts in Disease Prevention and Business Continuity

◆ In response to the pandemic, the Company set up a remote work system and held multiple webinars. These practices have been greatly appreciated by our clients and were also featured in the special report in the 1757th issue of Business Weekly.