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In order to keep in line with the international sustainability trend, Kaori Heat Treatment Co., Ltd. (8996.TW) has strengthened its ESG information disclosure and voluntarily issued the "2022 ESG Sustainability Report" in compliance with the Global Reporting Initiative's Sustainability Reporting Guidelines (GRI Standards), the Sustainable Development Conference Standards Board Index "Electrical and Electronic Equipment Industry" (SASB), and comply with the Climate-related Financial Disclosure (TCFD) task force structure for information disclosure. Continuously communicate ESG (environmental, social and governance)-oriented strategies, actions and results to stakeholders.

2022 has been an extremely challenging year for Kaori. From the spread of COVID-19 in the first half to the escalation of the Russia-Ukraine war in the second half, the company was tested time and time again for its capacity to keep up with the increasing demand for heat supply and energy-saving equipment, as well as its ability to manage risks associated with carbon taxes and cross-strait tensions.

Kaori's sustainability efforts in 2022 were driven by three main themes, namely "low carbon and emissions, people-centered, and sustainability”:

Environmental  

• GHG emissions intensity reduce by 17%
• Manufacturing process energy saving and automation
• Sourcing low-carbon raw materials and improving manufacturing process technology
• Managing waste reduction and package recycling

Social 

• 8% foreign employees
• Training development, averaging 21 hours per employee
• Birth & child care subsidy, total USD$33,518
• Employee safety and health, 0 major accidents
• Annual health checkup, 100% of employees participated
• The male and female salary ratio is 1:1

Governance 

• Adopted the TCFD guidelines, 100% of ESG committee members participated workshop 
• The TWSE corporate governance indicators, increasing two levels
• Released sustainable supply chain system
• Adopted ISO 27000 Information security management systems

Kaori plans to take its sustainability efforts to the next level in 2023 by adopting the sustainable spirit of“For Earth. For Us.” These sustainability efforts will revolve around five main themes: product/service innovation, low-carbon transformation of key processes, advancement of risk control, diversified workplace, and enhanced cybersecurity. The Company plans to implement these themes by maintaining good communication with stakeholders, learning the international ESG assessment criteria, and observing the United Nation's Sustainable Development Goals (SDGs). We hold the conviction that incorporating ESG values into our routine operations will greatly improve the resilience and global competitiveness of our
operations and help us connect with the green transformation that is happening around the world.

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ESG Contacts
Please do not hesitate to contact us if you have any suggestions regarding this report or Kaori's sustainability practices.

TEL: +886-3-4527005 ext 213 | Mail: pr@kaori.com.tw