Green Transformation

LCY's Taiwan plants follow the Ministry of Environment's GHG Inventory Guidelines, while China sites conduct inventories and third-party verification under ISO 14064-1:2018. The Taipei office, R&D Center, Kaohsiung Terminal Station, and Central Taiwan Science Park ( CTSP ) Huwei Plant also conduct voluntary inventories under ISO 14064-1:2018. U.S. and Canadian operations currently follow local regulatory requirements, with plans to gradually adopt ISO 14064-1:2018 verification for greater consistency and international alignment.

LCY's greenhouse gas emissions are primarily indirect emissions ( Scope 2 ), which account for approximately 83% of total emissions, while direct emissions ( Scope 1) account for about 17%. Therefore, LCY's decarbonization strategy focuses on optimizing energy integration across production sites and improving the efficiency of electricity and steam utilization. To fulfill its climate commitments, senior management approved an enhanced emissions reduction target in the first quarter, aligning with the Science Based Targets initiative ( SBTi ). The company aims to achieve a 42% absolute reduction in Scope 1 and Scope 2 GHG emissions by 2030. LCY also aims to reach net-zero emissions by 2050, in alignment with the 1.5° C pathway under the Paris Agreement. LCY will continue strengthening energy efficiency initiatives, enhancing energy efficiency at production sites, reducing fuel consumption, and improving operational controls to lower air emissions. These efforts are helping LCY steadily advance its low-carbon transition and progress toward long-term sustainable operations.

Since 2012, the Dashe Plant has served as a demonstration site for ISO 50001 Energy Management System implementation, an initiative subsequently extended to other production sites. By the end of 2025, all production plants in Taiwan and China had achieved 100% adoption and third-party certification of ISO 50001, with regular maintenance and performance reviews to ensure effective operation of the system. LCY actively promotes energy management through systematic data monitoring and cross-department collaboration mechanisms. We continuously review production processes and optimize operating parameters to enhance overall energy efficiency. Each plant also conducts regular inventories of energy-intensive equipment and identifies potential energysaving opportunities. High-efficiency equipment and smart control systems are introduced to steadily reduce energy consumption per unit of product, moving toward the goal of high-efficiency, low-carbon sustainable operations.

In light of the global shift towards renewable energy and the policies of the Taiwan government, LCY is actively expanding renewable energy facilities and equipment. LCY implemented solar power generation equipment at both the Dashe Plant and the Nanzih R&D Center, generating 1,476 GJ and 111 GJ of energy respectively. Taiwan Renewable Energy Certificates ( T-RECs ) have also been obtained. In addition, in response to the Regulations for the Management of Setting up Renewable Energy Power Generation Equipment of Power Users above a Certain Contract Capacity (commonly referred to as the "Large Electricity Consumers Article" in Taiwan ), the Renewable Energy Development Act, and the Regulations on Energy Users' Conservation Targets and Implementation Plans for 2025–2028, LCY's Green Transformation Team has coordinated with relevant plant units to plan and implement renewable energy usage starting in 2023, in line with statutory requirements. In 2025, green electricity accounted for approximately 1.363% of total electricity consumption, representing a 66.5-fold increase compared to the base year ( 2021). We are committed to mitigating the climate change impacts of energy use, aiming for renewable energy to reach 15% by 2030.

LCY identifies air quality management as a key priority within its environmental management framework. It has established a cross-site and crossbusiness-

unit management structure for air quality management. The Environmental Risk Management Department regularly conducts cross-site audits in

collaboration with occupational safety and environmental protection office personnel from each plant, as well as external academic and technical experts.

The audit results, current performance, and improvement measures are reported to senior management through KPI performance review meetings to

ensure effective oversight and continuous improvement and strengthen pollution prevention efforts. LCY integrates AI Factory intelligent monitoring, EYE-CGAS

infrared inspection, and FTIR 24/7 monitoring technologies to establish a dual-dimensional monitoring and alert system covering both time and spatial

dimensions. These technologies enhance the accuracy and reliability of emissions data disclosed across all sites and ensure that emissions remain compliant.