Issue Date: August 3, 2023

In support of the sustainability thought across the world, we began promoting green product actions in 2004, with Green Material, Green Manufacturing, Green Transportation and Green Design as the main features of our green product management system. Apart from promoting green product development, we enable more products to pass Green Mark certification to meet the goal of sustainable development.

Green Materials

• Actively procure green raw materials to fully implement green supply chain management.
• To reduce raw material consumption and implement a circular economy, the product casing of specific EX1 laser projector models uses 50% PCR plastic. In 2022, 512 kg of PCR plastic was used, and cardboard boxes with 85% recycled pulp were used for shipping.
   

Green Manufacturing

Responsible Team

• Product Carbon Footprint Project Team: In response to the Product Carbon Footprint Project for the EX1 laser projectors, the Product Carbon Footprint Project Team is established. The head of the Technical Development Strategy Center serves as the convener, and 27 executives and employees from the R&D and Manufacturing Departments are assigned as team members who will receive training to facilitate the product carbon footprint assessment.
• Green Product R&D Team: Held meetings regularly and proposed 36 low-carbon product development projects. Among them, low-carbon technologies for LGP and lightweight designs have been implemented in mass production. In addition, automotive customers are encouraged to reuse packaging materials, creating sustainable business opportunities together.

Product Carbon Inventory Platform

• Based on the inventory results of the EX1 laser projectors, we will build a digital platform and database for product carbon inventory according to the BOM. This will be an important tool for promoting green products and carbon reduction in the future.
• We will collect the relevant coefficients of LCM and backlight module. In 2023, we plan to develop a carbon inventory platform to identify the carbon emission hot spots of the products and effectively manage product carbon emissions.

Product Carbon Footprint Inventory

• ISO 14067: Select 3 mainstream models of the EX1 laser projectors to undergo the ISO 14067 Product Carbon Footprint B2B inventory and verification. Based on the inventory results, the stage with the highest carbon footprint is the B2B "Raw Material Acquisition." In the future, we will build a product carbon footprint database tool and address carbon emission hot spots by changing raw materials, selecting low-carbon materials, and incorporating recycled materials. We will improve our product designs and continue to develop sustainable products with green advantages for consumers.
• Independent Inventory: Since 2016, we have conducted independent carbon inventory of our backlight modules. We have always embraced green thinking and continue to promote lightweight designs, energy efficiency in production, and diverse energy-saving measures. In 2022, the carbon footprint of our 14-inch backlight modules was 1.73 kgCO₂e per unit, a 30% reduction per unit from 2021. In the future, we will continue to promote energy-saving initiatives, increase the use of renewable energy, design green products, reduce carbon emissions from transportation, and develop low-carbon products.

Light Guide Plate Manufacturing Process Improvement

• Regulate the production temperature and save 0.25 kWh of electricity per hour. In 2022, the total production time was 2,430.4 hours, with electricity saving of 607.6 kWh and carbon reduction of 0.3 tonCO₂e.
   

Green Packaging & Transportation

Green Packaging

To realize environmental values, we optimize the packaging design, use recycled paper to make wrappings, and adopt environment-friendly ink to print and simplify packaging.

Molded pulp packaging

Molded pulp is made of recycled waste paper. In 2017 Q1, we began verifying molded paper packaging materials with the drop test and the storage test. After passing the tests, it will be used in packaging. Such kind of natural, non-toxic, lead free, decomposable, pollution free, and waste free buffering material can effectively reduce the variety packaging materials and the quantity of packaging. Along with soy ink printing and package simplification, everything is eco-friendly. In 2022, for projector shipments, the molded pulp used in the packaging materials for fixed paper stands increased to 86%, a significant increase of 18% from 2021.

Design-Size Reduction

By optimizing the volume design of the EX1 laser projector, the loading rate of sea transportation increased by 16.6%. Each projector can reduce approximately 3 kgCO₂e and 5.3% of carbon emissions.

Use cardboard boxes made from recycled pulp for shipping

Waste cartons and coated paper (photocopies, books, and newspapers) generated from manufacturing and the office are sent to paper mills for recycling by qualified environmentally friendly waste disposal companies. We also purchase paper products made from 80% to 100% recycled pulp with eco-labels from downstream paper product manufacturers. In 2022, we purchased and used 1,380,778 cardboard boxes made from recycled pulp for shipping.
 

Recycle and remanufacture scrap trays

When the trays are recycled repeatedly and can no longer be used, we commission tray suppliers to remanufacture all the scrap trays, achieving the goal of "turning waste into resources, finding alternatives to natural resource exploitation, full recycling, and zero waste." In 2022, 5,957 scrap trays were recycled and remanufactured, reducing 0.3 tons of waste and 0.6 tonCO₂e.
 

Green Transportation

• Prioritize transportation with lower carbon emissions, such as sea transportation, which is expected to achieve an 11% carbon reduction. Combine shipments to reduce the demand for dedicated vehicles. Based on Kunshan plants' transportation route simulation, we estimate achieving a 17% carbon reduction.