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Kaori Heat Treatment Co., Ltd. (8996-TW) recognizes the importance of corporate fulfillment of social responsibility, and at the same time echoes the expectations of stakeholders for the sustainable operation of enterprises, and spontaneously compiled the first "2021 ESG Sustainability Report" this year. Expose its highlights and performance in ESG (Environmental, Social and Governance) to stakeholders. In addition to showing the advantages of financial profit and R&D innovation, it can also actively undertake corporate social responsibility and implement it with specific actions a sustainable vision for a good society.

Socioeconomic uncertainties of COVID-19 and natural disasters given rise by extreme weathers have made us aware of how climate change may affect or even threaten humanity. It was at times like this that the world starts to form a consensus toward ESG (Environmental, Social, and Governance) values. As a corporate citizen, Kaori observes the global net zero movement and takes the initiative to adopt sustainable, lowcarbon practices. First, we adopted the ISO14064-1 standard on Greenhouse Gas inventory and surveyed greenhouse gas emission on an organizational level. At the production end, we made further enhancements to our brazing techniques, replaced energy-intensive production equipment with energyefficient alternatives, and implemented solutions to lower carbon emission of the production stage to a new level. Meanwhile, actions are being taken to reduce waste, effluent, and use of paper. With respect to renewable energy, Kaori has made plans to install rooftop photovoltaic systems totaling 744.51kW in capacity at Kaohsiung Benzhou Plant. They are scheduled to complete in Q4 2022 and are expected to generate 18,448,369 kWh of green power over 20 years to reduce 9,390 tonnes of CO₂ emission, which is equivalent to the carbon absorption capacity of 23 Da'an Parks.

Only a sustainable business is able to sustain service. To enforce sustainability awareness and values, Kaori has assembled an "ESG Committee" that serves as the decisionmaking authority for all ESG-related matters. Being the chief of the committee, coordinate with senior managers from different fields of expertise to respond to the United Nation's Sustainable Development Goals (SDGs) and explore ways to associate the SDGs with Kaori's core advantage. Through a series of discussions, we have identified "Low Carbon, People Value, and Sustainable Practice" as the three main themes, and made low-carbon production, sustainable supply chain, green innovation, training of sustainability talents, and public interests the five major focuses of our business activities. Purposes of the ESG Committee are to implement medium- and long-term ESG strategies that systematically improve sustainability performance of the Company, and to support UN's SDGs by observing ESG trends, evaluation standards, and best practices around the world.

For more than half a century, Kaori has relied on innovative business mindset and technology as the main driver for business growth, and owes much of its success today to the contribution, trust, and support of employees, supply chain partners, customers, and the general public. Kaori's sustainability efforts for 2022 will continue to be inspired by the idea - "For Earth. For Us." Backed by a strong conviction to ESG values, the Company will strive to act in the best interest of all stakeholders and contribute further to the stability and growth of the society.

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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