Issue Date: July 31, 2024

Coretronic regards green products as one of the cornerstones of corporate net-zero development, and with sustainable development and SBTi decarbonization path as the core, it formulates green product development strategies and sets clear short-, mid-, and long-term goals. In the concepts of green design and the research, development, and production of green products, the Company promotes green technology innovation, energy-saving technology application, and enhancement of material sustainability, introduction of environmentally friendly and low-carbon materials, eco-friendly packaging, and green transportation, among other sustainable practices. Not only has it achieved breakthroughs in energy conservation and emission reduction, but it has also strived to launch more innovative green products.

The Company also actively collaborates with customers to implement the concept of product recycling and reuse. Through machine recycling, material refurbishment, and performance enhancement, it restores product performance and reuses the products, significantly reducing the use of raw materials and extending the product life cycle. Furthermore, it has established a robust green supply chain with suppliers, requiring them to meet environmental standards and jointly reducing the environmental impact of the supply chain. The diverse green product strategies not only meet market and customer demands but also effectively reduce the carbon footprint of the Company's products. It is expected that in the future, it will lead the trend of green products and provide a more diverse range of environmentally friendly products to the global market.
 

Green Materials

• Actively procure green raw materials and fully implement green supply chain management.
• To reduce raw material consumption and implement a circular economy, starting from 2022, 50% recycled plastic materials (PCR) were used as product housings. In 2023, the usage range was expanded. For specific mainstream and commercial projector models, 14,838 kg of recycled plastic materials were used for specific models of mainstream and commercial projectors, accounting for 7% of the annual shipment of mainstream and commercial projectors. In the future, the scope of use will continue to be expanded to achieve the set target.
   

Green Production

Project Teams

• Projector Product Green Development Team: The highest executives of the mainstream, commercial, and smart projector business groups appointed the R&D managers to form the Green Development Team. This team leads a comprehensive review of the carbon emissions generated during the projector product development and design processes. Implementing environmentally friendly designs based on the product characteristics and advantages, gradually conducting product carbon footprint assessments and establishing a comprehensive product carbon footprint database. Through continuous product optimization and performance enhancement, aiming to achieve carbon reduction targets.
• Green Product R&D Team: Focuses on developing products with the core concept of green design, emphasizing "low energy consumption", "lightweight design", and "use of recycled materials". In 2023, regular working group meetings will be held, and 28 product development projects will be proposed, including the introduction of recycled aluminum alloy back panels into new laptop models, the development of high-efficiency backlight modules to reduce energy consumption, and the continued adoption of low-carbon light guide plate technology and lightweight optical films to meet customer demands and mass production requirements.

Product Carbon Footprint Inventory

• Product Carbon Footprint Assessment Platform: Based on the assessment results for the EX1 laser projector platform, the Company has independently planned and established a product carbon footprint assessment platform using the product BOM table. In 2023, the platform architecture design was completed. It is planned to use externally purchased life cycle assessment software to start building the platform in 2024. After completion in 2026, carbon footprint assessments of new products will begin. By 2029, the scope of the assessments will be expanded to include all company products.
• ISO 14067: In 2022, three mainstream EX1 laser projectors, one 15-inch LCD display, and one 43-inch LCD display were selected for ISO 14067 B2B product carbon footprint assessment and verification. The certificates were obtained in 2023. According to the assessment results for the three mainstream EX1 laser projectors, the most significant carbon footprint stage is the "raw material acquisition" phase in the B2B process. In the future, the Company will optimize product designs by utilizing the self-designed and established product carbon footprint assessment platform to focus on changing high-emission raw materials, selecting low-carbon raw materials, and introducing recycled materials, continuously developing sustainable products with green competitiveness for consumer choice.
• Self-Assessment: Since 2016, the Company has conducted self-assessments of the carbon footprint for backlight module products for eight consecutive years, continuously promoting green product concepts, including material and weight reduction design, energy-saving production improvements, and diverse energy-saving measures. In 2023, the carbon footprint for each 14-inch backlight module product was 1.89 kgCO2e, with electricity accounting for 45%. In the future, the Company will continue to implement various energy-saving initiatives, increase the use of renewable energy, and incorporate green design concepts into the product development process, making every effort to develop low-carbon products.

Process Energy Saving Improvement

• Chunan Plant’s backlight module process adjusted the production temperature, saving 0.25 kWh per hour. In 2023, with 2,663 production hours, 666 kWh were saved, reducing 0.3 tons carbon emissions.
• Coretronic Optics (Suzhou) introduced a cold bending process to replace the traditional hot bending process. For the 12.3-inch automotive touch display, the material was processed by cold bending, reducing carbon emissions by 30% per unit area. In 2023, 10,102 automotive touch displays were manufactured, with a processing area of 5,441.2 square feet, reducing 81.6 tons carbon emissions.

Developing and Manufacturing Low-Carbon Products to Meet Customer Needs 

• Low-carbon backlight technology: At Tainan Plant 1, the optical brightness technology was optimized, reducing the illumination power consumption by 36%. In 2023, a total of 52,699 units were produced. Assuming 10 hours of usage per day and 365 days per year, it is estimated to save 747,223 kWh and reduce 369.8 tons carbon emissions.
• Lightweight backlight design: At Tainan Plant 1, the thickness of the original composite film material and the mechanical design were modified, reducing the usage of optical composite film and back plate material, with an average weight reduction of about 11%. In 2023, a total of 280,495 units were produced, resulting in an overall weight reduction of 1,546 kg and a carbon emission reduction of 3.2 tons.
• Lightweight optical film design:：Coretronic Optotech (Suzhou) optimized the optical structure design, the original POP thickness was 0.45mm, and the improved MOP thickness is 0.32mm with the same optical performance. Additionally, lightweight designs were introduced for smaller size products, resulting in an average weight reduction of approximately 29% across products.  In 2023, 2,921,310 units of 14, 43, 50, and 55-inch products were produced, with a product weight reduction of 299.4 tons and a carbon emission reduction of 616.7 tons compared to the original design.

Source Reduction

• Optimizing circuit design: Coretronic Optics (Suzhou) introduced a circuit optimization project for the 14.9-inch automotive touch display module, reducing the number of flexible flat cables (FFC) from 6 to 4. In 2023, 4,575 touch display modules were produced, reducing carbon emissions by 0.1 tons.
• Reducing outbound packaging volume: Coretronic Optics (Suzhou) used larger capacity pallets for outbound shipments, increasing the shipment volume by 150% and reducing the number of pallets needed by 53%. In 2023, 1,931 fewer outbound pallets were used, reducing carbon emissions by 25.2 tons. 
• Reducing chemical usage: Coretronic Optics (Suzhou) promoted a green factory by establishing automated assembly equipment for production, reducing the need for cleaning solvents such as isopropanol. In 2023, the usage of isopropanol and hazardous waste was reduced by 46%.

Green Packaging

• Environmental Cushioning Materials: For mainstream and smart projectors, eco-friendly cushioning materials such as pulp molding and paper folding are used for shipping, accounting for 77% of the annual shipments of mainstream and smart projectors.
• Shipping Boxes Made from Recycled Pulp: For projector shipments, shipping boxes made from FSC-certified or recycled pulp paper products are used, accounting for 72% of the annual projector shipments.​​​​​​
• Recycling and Remanufacturing of Waste Trays: When trays have been recycled multiple times and the quality no longer meets the usage conditions, all waste trays are entrusted to the tray supplier for remanufacturing, aiming to achieve the goals of "waste resource utilization, alternative to natural resource extraction, complete material recycling, and zero waste." In 2023, a total of 5,340 waste trays were recycled and remanufactured, reducing 0.3 tons of waste and 0.6 tons of carbon emissions.

Green Transportation

• Optimized the overall volume design of the EX1 laser projector, increasing the sea transportation loading rate by 16.6%, estimated to reduce carbon emissions by 3 kg (5.3%) per unit. 
• Optimized the overall volume design of the G50 projector platform, increasing the sea transportation loading rate by 74%, estimated to reduce carbon emissions by 129 kg (26.9%) per unit.
• With green transportation as the main focus, a carbon reduction strategy was formulated. While ensuring timeliness, goods originally requiring air transportation were shifted to sea transportation with lower carbon emissions. In 2023, goods originally requiring air transportation were shifted to sea transportation, reducing carbon emissions by nearly 4 tons (23%).
• To enhance the benefits of transportation carbon reduction, DHL's "GoGreen Plus Sustainable Aviation Solution" was adopted starting in 2023, utilizing sustainable aviation fuel for transportation, reducing GHG emissions and logistics-related carbon emissions. In 2023, the total carbon emissions decreased from 87 tons to 72 tons, with a reduction of 15 tons, representing a 17% decrease in the annual total.