Material Topic#3

Water Stewardship

Water Stewardship mainly includes water intake and recovery management, as well as water pollution prevention and control. In addition, we use the Aqueduct Water Risk Atlas analysis tool developed by the World Resources Institute to identify water resource risks at major production sites of Everlight. Everlight Suzhou is identified as a water-stressed area, so we have enhanced management and made preparations accordingly.

Implementation Results in 2023

0ML
Total water Intake
0%
Wastewater treatment compliance rate
0%
Water recovery rate R2

Positive
The company demonstrates effective water resource management practices, including water recovery in processes, efficient water resource
utilization, and effective measures for water conservation. It ensures that wastewater discharge complies with regulations, thereby can effectively
protect water, etc.

Negative
Ineffective water reduction measures by the company or failure to promptly respond to abnormalities in wastewater treatment may potentially
lead to water pollution at discharge end, and even extend to coastal areas and affecting nearby marine ecosystems.

The company recongnizes the limitation of water resources and is committed to
increasing the water recovery rate (R2) while continuously enhancing the efficiency
of wastewater treatment to reduce environmental burdens.

Head Office | Environmental Management Committee

Factory | Environmental Management Team and Environmental Protection Unit

Water Intake | Installing water recovery measures, conducting water usage surveys

Drainage | Enhancing wastewater treatment efficiency, regular monitoring of treated water quality

Regular assessment of operating sites which are located in water-stressed areas

  • Establishing water recovery systems, ozone catalytic technology, MD technology, etc.
  • Utilizing the Aqueduct Water Risk Atlas analysis tool from the World Resources Institute to assess water resource impacts.

There are three management indicators: namely Water recovery rate R2 (%), Total drainage volume (ML), and Wastewater treatment compliance rate.

  • Water Intake:Total water intake (ML) = Sum of all water intake items (tap water, groundwater, industrial water).
  • Drainage:Wastewater treatment compliance rate (%) = (Volume of discharged wastewater in compliance with regulatory standards / Total volume of discharged wastewater) x 100%.
  • Recycling:Water recovery rate R2 (%) = [(Total recycled water volume + Total circulating water volume) / (Total water intake + Total recycled water volume + Total circulating water volume)] x 100%.

Targets

  • Water intake: Total water intake (ML) ≤ 872 (by 2025, 2030).
  • Drainage: Wastewater treatment compliance rate (%) = 100% (by 2025, 2030).
  • Recycling: Water recovery rate R2 (%) ≥ 95% (by 2025), ≥ 96% (by 2030).
  • Environmental management review (once a year)
  • Sustainable Development Committee (twice a year)
  • Plant policy plan review (once a quarter)
  • Internal environmental management system audit (once a year)
  • External verification unit (DNV) audit of environmental management system (once a year)
  • Tracked process: Regularly convene “Environmental Safety and Health
    Management Review Meetings” through the “PDCA management cycle” method to continuously review and improve the status of various environmental goals and their achievement status.
  • Effectiveness of previous actions: Annually check whether the set goals have been achieved.
  • Lessons learned: Everlight has been effective in implementing green chemistry and circular economy practices, continuously promoting environmental sustainability, such as increasing atom utilization and process improvements to reduce the carbon footprint of its products. Additionally, Everlight actively participates in community and educational projects to promote environmental awareness.

Shareholders/Investors

Customers/Brands

Suppliers/Contractors

Neighboring Communities

Government Agencies

Through regular/irregular communication in various forms.

Management situation

  • Water Intake Management

Assessing the Need for Enhanced Water Management at Each Site

Water is a shared resource, and we conduct an inventory of water usage at each site and evaluate those located in water-stressed areas. Specifically, for Everlight Suzhou in 2023, the main measures for water resource management are: collecting and recycling concentrated water from the pure water machine in Building C for daily washing and toilet flushing, totaling 5,270 tons.

Water Sources

The primary sources of water for each factory include groundwater, tap water, and industrial water. When planning the intake of water resources, we consider government policies, company development, industry changes, and the water resource needs of surrounding residents. For example, we collaborate with regulatory authorities to establish groundwater intake points for factory use, ensuring that water is available to the public during droughts.   This ensures the rational and efficient management, scheduling, and distribution of water resources. Additionally, the volume and method of water intake are carefully managed to minimize any significant negative impacts on the ecological balance of water sources and nearby residents.

To assess water resource risks at each factory, Everlight relies on the Water Risk Assessment Tool developed by the World Resources Institute to identify the water riskd in each factory area. After assessment, only Everlight Suzhou is identified as being in a high risk of water resource shortage area.  The primary use of water resources at this factory are domestic and industrial water. In 2023, the water management statistics for this facility are as follows: water intake of 63.3ML, wastewater discharge of 29.8ML, and water consumption of 33.5ML.

2023 Water Intake (by Source)

■ Industrial water 1%
■ Groundwater 55%
■ Tap water 46%

  • Waste Water Discharge Management

Compliance with Regulatory Requirements for Wastewater Discharge Management

Our company manages the industrial wastewater that requires discharge by properly planning wastewater treatment facilities based on the characteristics of the process wastewater source. We implement pollution reduction at the source for each process, classifying and matching with appropriate treatment equipment and technologies. This ensures our wastewater treatment systems effectively reduce pollutants. We also regularly test the quality of the discharged wastewater (e.g., commissioning external organizations for water sampling tests or conducting tests by ourselves according to the standard methods announced by the regulatory authorities) to ensure compliance with regulatory standards. All operational sites obtain the necessary permits from local authorities before discharging, aiming to prevent water pollution and ensure cleanliness of water resource, and maintain the ecological environment system.

Each plant incorporates its domestic sewage and industrial wastewater into industrial park effluent management system, sewage system, or municipal wastewater network (Everlight Plant I is included in the Dayuan Industrial Park effluent management system, Everlight Plant II, III are included in the Guanyin Industrial Park wastewater treatment plant, Everlight Plant IV is included in the Taoyuan Science Park wastewater treatment plant, Trend Tone Imaging is included in the Hsinchu Science Park Wastewater Treatment Plant, and Everlight Suzhou is included in the Suzhou Industrial Park Wastewater Treatment Plant). The discharge quality meets the control standards of the wastewater treatment facilities in each area.

Wastewater Discharge Management Indicators

Wastewater Discharge Compliance Index: The wastewater treatment compliance rate (%) = Discharge Compliance Rate (%) = (Volume of wastewater discharged compliant with regulatory standards/Total volume of wastewater discharged) ×100%

In 2023, the total volume of wastewater discharged is 19% lower compared to 2022. The main reason is that the digital textile inks products have implemented an optimization plan for the purification process. The process included the recycling of permeate back into the desalination stage, significantly reducing the volume of water required for purification in 2023. Additionally, the production volume of this product increased by 56% in 2023. Everlight plans to continue enhancing water recycling measures (such as increasing the use of recirculated water in scrubbing towers), which further contributed to the overall reduction in wastewater output. These actions collectively led to a decrease in wastewater discharge.

The increase in water usage at Everlight Suzhou was due to the addition of a desalination treatment section for recycled liquids, an expansion of the desalination process for reactive inks, and a 12% increase in the production
of BOP-DYE compared to 2022.

Discharge Volume Details

Compliance with Regulatory Requirements for Wastewater Discharge Management

Our company manages the industrial wastewater that requires discharge by properly planning wastewater treatment facilities based on the characteristics of the process wastewater source. We implement pollution reduction at the source for each process, classifying and matching with appropriate treatment equipment and technologies. This ensures our wastewater treatment systems effectively reduce pollutants. We also regularly test the quality of the discharged wastewater (e.g., commissioning external organizations for water sampling tests or conducting tests by ourselves according to the standard methods announced by the regulatory authorities) to ensure compliance with regulatory standards. All operational sites obtain the necessary permits from local authorities before discharging, aiming to prevent water pollution and ensure cleanliness of water resource, and maintain the ecological environment system.

Each plant incorporates its domestic sewage and industrial wastewater into industrial park effluent management system, sewage system, or municipal wastewater network (Everlight Plant I is included in the Dayuan Industrial Park effluent management system, Everlight Plant II, III are included in the Guanyin Industrial Park wastewater treatment plant, Everlight Plant IV is included in the Taoyuan Science Park wastewater treatment plant, Trend Tone Imaging is included in the Hsinchu Science Park Wastewater Treatment Plant, and Everlight Suzhou is included in the Suzhou Industrial Park Wastewater Treatment Plant). The discharge quality meets the control standards of the wastewater treatment facilities in each area.

  • Water Recycling and Reuse

To reduce water consumption, we have previously implemented various water-saving strategies and measures, ranging from daily water use in daily life by staffs to water recycling and reuse equipment, all of which have been effective. However, to further improve the implementation of water recovery, we have established a water recovery rate R2 (excluding cooling tower circulation), which has been listed as a key point for annual management. This allows us to monitor the current water usage, assess the effectiveness of water-saving/recycling programs, and conduct reviews and analysis.

Achievements in 2023

10,942.5 Million Liters

Total Recovery Water Volume + Total Circulation Volume

4,377

Save standard pool water usage

19 %

Scrubber circulating water volume

Water Stewardship Recyclying Volume & Reuse Rate

In 2022, the digital textile ink product was conducted an optimized water purification process, the recycled permeate was back to the desalination stage to reduce the amount of purification water used and achieve positive results. In 2023, in addition to continuing the measures adopted in 2022, the company further increased the circulating water used in scrubbers and the reuse of concentrate from water purifiers.

Disclosure

  • Water Sources at Each Operating Location

  • Detailed statistics of water Intake and water consumption from 2019 to 2023
    In 2023, Everlight’s total water Intake is 593.9ML, with groundwater accounting for approximately 52.7% and tap water accounting for 46.6%. The total water consumption is 95.7ML.
    Compared to 2022, there was an 18% reduction in total water Intake and a 13% reduction in total water consumption in 2023. This improvement can be attributed to increased demand for liquid products related to customer needs, leading to higher water demand in the manufacturing process (such as digital textile inks, developer, cleaning agents, etc.).

  • 2023 Industrial Effluent Discharge Information for Each Plant

  • Key Emission Disclosure Indicators
    We selected COD, SS, Ammonia Nitrogen, and Nitrate Nitrogen as the priority discharge items for monitoring, focusing on the disclosure of these key substances. We then compare the results against local regulatory standards to concretely demonstrate and manage the outcomes of our wastewater treatment processes. In 2023, the test results for all these indicators were lower than the regulatory control standards.

  • Statistical details of total recycled water volume and total circulation volume from 2019 to 2023

  • Historical Water Resource Management Indicators and Mid-term Target Achievement
    In 2023, all performance indicators of water resource management and water pollution prevention/control were
    met the annual goals and effectively implemented the water resource management practices.