I. Energy management

The company adheres to the United Nations Global Compact, advocating for sustainable business practices and the implementation of green energy systems. It focuses on global issues influenced by climate change, such as extreme weather, ecological balance, and a circular economy. In response to the draft amendment of the "Climate Change Response Act" by the Environmental Protection Administration of Taiwan, which aims for long-term greenhouse gas reduction, the company has initiated actions to control carbon emissions. It has conducted successive carbon inventories as part of its medium to long-term social responsibility strategy.

In pursuit of carbon reduction goals, the company invested NT$44 million in 2022 to establish a solar power generation system in its Malaysia factory. In 2024, the total solar power generation is expected to reach 4.12 million kWh, a 37% increase compared to 2023, resulting in an annual carbon reduction of 3,200 metric tons of CO2e. In 2025, we plan to invest an additional NT$20 million to install new solar panels at the Malaysian plant, with an estimated additional power generation of 2.15 million kWh per year, a 52% increase compared to 2024. This will bring the total carbon reduction to 4,800 metric tons of CO2e annually. This progress aligns with the company's commitment to the target of achieving net-zero carbon emissions by 2050.

II. Greenhouse Gas and Water Resources Reduction Management Goals

Greenhouse Gas Reduction Management Goals

In response to the global warming mitigation goal of limiting the increase in temperature to 1.5°C set by the 2015 Paris Agreement, the company commits to the following greenhouse gas reduction objectives:

1. 2030:By the year 2030, the company anticipates continuous capacity expansion while keeping the total carbon emissions at the same level as in 2023.

2. 2050:Achieve net-zero carbon emissions by the year 2050.

To realize these objectives, the company is actively accelerating its investment in renewable energy. It plans to invest a total of NT$55.6 million in constructing a new solar power generation system, with an annual electricity generation capacity of 3.7 million kilowatt-hours and an annual carbon reduction of 2,364 metric tons of CO2e.

Water Resources Reduction Management Goals

The company is continuously implementing water conservation improvement initiatives. We have installed water resource recycling systems on specific production lines in our factories. This allows us to recycle wastewater generated during the production process and reuse it in the cooling towers within our facilities.

In 2024, The company invested a total of NT$100 thousand in the water resource recycling system. It is estimated that by 2025, this system will save 216 metric tons of water used for air conditioning, achieving a recycling rate of 20-30%.

III. Supplier management and ecological care

Supplier Management Policy

VISCO classifies the risk level of suppliers based on the impact of raw material suppliers on lenses and regulations. Corresponding management operations are implemented for different risks:

1. Suppliers are required to obtain ISO international quality certification. VISCO has an internal Supplier Management System - WEBISO, which controls the validity period of ISO certificates for all direct raw material suppliers to ensure their effectiveness.

2. The introduction of new raw materials must pass VISCO's verification process, which includes both outsourced and internal verification. Suppliers are evaluated using a supplier evaluation form, and high-risk manufacturers may be subject to on-site audits or self-assessment.

3. High-risk suppliers must undergo on-site audits or self-assessment annually. The checklist includes 14 items such as the operation of the supplier's quality system, personnel education and training execution, document integrity, process equipment control, inspection calibration management, warehouse management, and environmental management. Suppliers are required to provide improvement plans for identified areas of improvement, and VISCO verifies and tracks the results of the improvements.

4. Each batch of incoming raw materials undergoes quality and delivery assessment. If improvements are needed, suppliers are required to provide corrective and preventive actions within a specified time frame, and on-site audits may be arranged when necessary.

Raw Material Supplier Management Process

In the year 2024, VISCO conducted on-site audits for 7 direct raw material suppliers and self-assessments for 9 suppliers based on their risk levels. No significant deficiencies were identified during the assessments; however, areas for improvement were identified and communicated to the suppliers. VISCO requested improvement plans from the suppliers and confirmed their successful implementation. The supplier evaluations resulted in all suppliers being deemed qualified.In the event that a supplier fails the evaluation, despite guidance and requests for improvement, and subsequent re-audit or self-assessment results still do not meet the criteria, the supplier will be excluded from the list of qualified suppliers. The excluded supplier must undergo a re-evaluation process in accordance with VISCO's requirements.

CSR Management

VISCO actively practices corporate social responsibility (CSR) and seeks to exert a positive influence on its collaborative partners. Regular CSR evaluations are conducted for suppliers, with a re-evaluation every two years after the initial self-assessment. VISCO may also perform on-site audits of suppliers when necessary.

CSR operations are divided into five parts, encompassing labor rights, occupational health and safety, environmental protection, ethical business conduct, and supplier management systems. Suppliers are required to adhere to the following principles:

1. Respect the rights of workers to organize and participate in trade unions, collective bargaining, and assembly associations.

2. Provide effective complaint mechanisms for workers.

3. Take necessary measures to prevent or eliminate discrimination and harassment in the workplace.

4. Timely, regularly, and fully pay workers' wages in legal currency.

5. Ensure that working hours and rest days comply with applicable local laws.

6. Safeguard young workers from conditions that violate safety, ethical, developmental, and health standards, and prohibit forced labor and the employment of child labor.

7. Establish and correctly use procedures and systems to report and record occupational accidents and injuries.

8. Possess the necessary environmental permits and licenses.

9. Comply with all applicable laws, regulations, and customer requirements, prohibiting or restricting the inclusion of specific substances in products and manufacturing processes.

10. Actively oppose any corruption, extortion, embezzlement of public funds, or any form of bribery in business activities.

11. Commit to reasonably protect the personal data and privacy of suppliers, customers, consumers, and workers, and comply with regulatory requirements for privacy and information security.

Ecological Care

In response to regional market demands and the promotion of eco-friendly products, measures are taken to encourage the preservation of biodiversity and the maintenance of forest productivity. For packaging supplies, environmentally certified paper is provided. This not only promotes local sourcing by suppliers, reducing transportation carbon footprints, but also ensures the sustainability of the environment by avoiding the sacrifice of forest resources, local ecosystems, or the overall community. In addition to energy and ecological considerations, the company places a strong emphasis on environmental investments and resource recycling.

Regularly updating equipment based on efficiency and replacing outdated equipment is part of the company's commitment to environmental sustainability. Beyond selling information products that have been evaluated for reusability, the company implements logistical management processes for retiring equipment. Waste recycling initiatives cover a range of materials, including paper, aluminum foil, steel sheets, polypropylene, chemical solutions, and more. Integrating environmental consciousness into daily operations, the company aspires to be socially responsible and to have a positive impact on the environment.