Issue Date：August 3, 2023

Energy Management

Energy Management Policy

Upholding the duty as a corporate citizen, we spare no effort to implement environmental and social responsibilities while operating the company and developing technology. Therefore, we established the Energy Management System Promotion Committee in 2016 to actively promote the continual improvement plans and activities of various energy conservation measures. In addition, to implementing an energy management system meeting international standards, we have established an energy management policy and made the following commitments:

Continuously improve energy performance and reduce energy consumption costs.
Implement the energy management system and reduce GHG emissions.
Abide by energy regulations and prioritize procurements of energy-efficient products.
Improve the green corporate image and promote eco-design and green production.
Secure acquisition of information and resources to achieve energy and resources targets.

Energy Management System

In 2022, the chairman signed the Net Zero Statement and publicly committed to "reduce GHG emissions (Category 1 and 2) by 50% by 2032 and achieve net-zero emissions by 2050." As a result, we have established the "Sustainable Energy Committee" under the Environmental Protection Committee to strengthen the implementation of net-zero and energy solutions. Additionally, the Taiwan plants have implemented the ISO 50001 Energy Management System and obtained the certification, effectively saving electricity, reducing energy consumption, and lowering operating costs.

2016-2022: The Chunan Plant obtained the ISO 50001certification for 7 consecutive years.
2022:The Headquarters and Tainan Plant 1 and 2 obtained the ISO 50001certification for the first time.
2022: The Taiwan plants' electricity consumption intensity was 23% less than 2021 and 47% less than 2019, achieving the short-term target.

Status of Energy Consumption

In 2022, the total energy consumption in Taiwan was 15,601 MWh, and 43,942 MWh in China. The energy consumption in both regions is mainly from electricity use. The Taiwan plants' total annual electricity consumption was 15,201 MWh (97% of energy consumption), and the China plants' was 40,912 MWh (93% of energy consumption). Natural gas, gasoline, and diesel consumption each accounted for less than 7%. Each plant proposes programs to improve the resource and energy efficiency and regularly reviews the implementation status of the goal regularly by the Environmental Protection Committee.

Area			Taiwan			China
Item / Year		Type	2020	2021	2022	2020	2021	2022
Direct Energy	Renewable Energy¹ (MWh)²	Renewable	0	0	96	0	0	5,171
Direct Energy	Purchased Electricity (MWh)	Non-renewable	14,413	15,907	15,105	31,113	49,016	35,741
Indirect Energy	Liquefied Petroleum Gas (MWh)	Non-renewable	0	0	0	0	0	0
	Natural Gas (MWh)	Non-renewable	262	233	245	897	1,234	2,198
	Diesel (MWh)	Non-renewable	15	30	32	24	310	184
	Gasoline (MWh)	Non-renewable	130	104	123	87	1,057	648
Total Energy Consumption (MWh)			14,820	16,274	15,601	32,121	51,617	43,942
Total Intensity of Energy Consumption (1 MWh/NTD 100m)³			83.7	60.5	46.8	117.7	129.4	100.8

1: Includes electricity consumption from solar self-consumption and green electricity wheeling.
2: 1 MWh = 0.0000036GJ
3：The scope of revenue by year
2020: Taiwan plants—Coretronic, Young Green Energy, uCare Medical Electronics, Champ Vision Display, Coretronic Intelligent Cloud Service, Coretronic Intelligent Robotics, Innospectra, Coretronic MEMS, and Coretronic Reality; China plants—Coretronic Display (Suzhou), Coretronic Optotech (Suzhou), Coretronic Projection (Kunshan), and Coretronic Optics (Kunshan)
2021-2022: Taiwan plants—Coretronic, Young Green Energy, uCare Medical Electronics, Champ Vision Display, Coretronic Intelligent Cloud Service, Coretronic Intelligent Robotics, Innospectra, Coretronic MEMS, Coretronic Reality, and Coretronic Intelligent Logistic Solutions; China plants—Coretronic Display (Suzhou), Coretronic Optotech (Suzhou), Coretronic Optics (Suzhou), Coretronic Projection (Kunshan), and Coretronic Optics (Kunshan)

Energy-Saving Measures and Performance

The Taiwan plants' electricity consumption intensity decreased by 23% from 2021 (47% from 2019) because of the implementation of 35 energy-saving measures, including upgrading the chillers, switching to LED bulbs in the entire plant, and monitoring electricity consumption. These measures have slowed down the electricity demand, leading to a decrease in overall energy consumption.
China plants have implemented energy-saving improvement solutions since 2018. For example, to respond to the extreme weather caused by global warming and climate change, the plants used the energy-saving lighting equipment, introduced the energy-saving measures to the air-conditioning system, and reviewed and shared the improvement actions with the Environmental Protection Committee on a quarterly basis. In 2021, the expansion of Wujian plants [established Coretronic Optics (Suzhou)] increased the electricity consumption intensity. To reduce energy consumption, we built solar plants at Wujiang plants to replace ordinary electricity consumption with clean energy in order to reduce the intensity of electricity consumption. As a result, the China plants' electricity consumption intensity in 2022 decreased by 24% from 2021.
Since 2015, we have reduced electricity consumption by implementing energy-saving projects in three directions, including HAVC systems, electric lamps, and other electricity consumption. In 2019, Wujiang plants started to implement energy-saving measures, and in 2020, we acquired "levitation chillers and flow optimization control equipment" to replace energy-consuming HVAC equipment. In 2021, the Kunshan plants and Tainan Plant 2 started implementing energy-saving measures. From 2015 to 2022, the Taiwan and China plants implemented 311 energy-saving solutions, reducing 28.15 GWh of electricity and 16,000 tonCO₂e, equivalent to the annual carbon uptake of 43 Daan Parks.
In 2022, the Taiwan and China plants implemented 72 energy-saving measures, reducing 15.3 GWh of electricity and 8,614 tonCO₂e.

Renewable Energy

Commitment and Target

2020-2022: The annual renewable energy usage of the Taiwan plants accounts for 1% of the annual electricity consumption of the entire plants.
2023~2025: The annual renewable energy usage of the Taiwan plants will account for 5% of the annual electricity consumption of the entire plants. The annual renewable energy usage of the China plants will account for 13% of the annual electricity consumption of the entire plants.
2026~2028: The annual renewable energy usage of the Taiwan plants will account for 6% of the annual electricity consumption of the entire plants. The annual renewable energy usage of the China plants will account for 15% of the annual electricity consumption of the entire plants.

Strategies and Performance

2016-2017: Purchased green power.
2018~：Established the solar plant with a capacity of 263.19 kWh on the roof of Tainan Plant 1.
2018~：Purchased renewable energy certificate (T-REC).
2020：Set the target of the renewable energy usage.
2021：The Wujiang plants [Coretronic Display (Suzhou), Coretronic Optotech (Suzhou), and Coretronic Optics (Suzhou)] installed solar systems with capacities of 1,207 kWh, 3,994 kWh, and 653.4 kWh, respectively.

2022：
China Plants：Coretronic Optics (Suzhou) installed a phase 2 solar system (the capacity increased to 653.4 kWh), and the Kunshan plants [Coretronic Projection (Kunshan) and Coretronic Optics (Kunshan)] installed solar systems with a capacity of 618.9 kWh.
Taiwan Plants：The Chunan Plant and Tainan Plant 1 use green power supply, and the Headquarters and Tainan Plant 2 purchased renewable energy certificates.

Measures	Plant	Purchasing / Activation Year	Purchase / Generation (kWh)	Reduction (tonCO₂e)
Green Power, Renewable Energy Certificate (T-REC), Green Power Supply	Headquarters, Chunan Plant, Tainan Plant 1 and 2	2016~2022	810,000	419.6
Solar Plant	Tainan Plant 1	2018~2022	1,380,000	708
Solar Plant	Wujiang plants [Coretronic Display (Suzhou), Coretronic Optotech (Suzhou), and Coretronic Optics (Suzhou)]	2022	4,711,087	2,687
Solar Plant	Kunshan plants [Coretronic Projection (Kunshan) and Coretronic Optics (Kunshan)]	2022	459,805	262

Achievement Status in 2022

The Taiwan plants used 171,290 kWh of renewable energy, accounting for 1.1% of the electricity consumption of the entire plants, achieving the annual target.
The China plants used more than 5.17 GWh of renewable energy, accounting for 14.5% of the electricity consumption of the entire plants and achieving the annual target.