Sustainability

An Environment and Energy Promotion Committee was established, so that the introduction of environmental protection concepts into daily work routines can be planned and carried out systematically, to raise awareness of saving energy, to reduce carbon emissions, to continue promoting behavior that saves energy, and to formulate a plan to cut waste.

In 2014, the ISO 14001 Environment Management System was implemented in the Taiwan headquarters building in Taiwan. In 2016, the ISO: 50001 Energy Management System was implemented in the Taiwan headquarters building. It’s been verified by the British Standards Institute and continues to improve in accordance with the management system by the planned and systematic PDCA management model. In 2022, ISO 14001 and ISO 50001 environmental and energy management systems were implement in all important subsidiaries. In 2023, ISO 46001 water efficiency management systems were implement. All of them have been certified by the British Standards Institution.

Using average power use in 2015 as a benchmark and office personnel power consumption in Taiwan as the energy efficiency index, energy savings will improve 20% until 2020. By comprehensively updating lighting equipment, we reached our goal earlier than planned. The current target is to reduce electricity consumption by 2%, water consumption by 3%, and waste by 2% each year compared to the base year of 2020, and to reduce photocopying paper usage by 5%. Promote reduction each year to achieve real improvement in benefits. In 2020, ISO 14064-1 Greenhouse Gas Emissions was implement in the headquarters building to actively control and reduce carbon emissions generated by enterprises. In 2023, the ISO 14064-1 GHG inventory expanded to expand 100% of Taiwan and China. In 2024, Chailease Holding will conduct a comprehensive greenhouse gas (GHG) inventory across all of its subsidiaries.

Environment and Energy Promotion Committee

Carbon Emission

Chailease Holding has long conformed to official greenhouse gas reduction targets. By keeping an organization-wide GHG inventory, we can not only track our carbon emissions, but also formulate a GHG emissions reduction plan. Moreover, we submitted the SBTi commitment in 2024. The emission base year is 2023, with a target to reduce greenhouse gas (GHG) emissions by 42% by 2030.

The table below shows the Group’s Scope 2 GHG emissions by region. In Taiwan, emissions from purchased electricity were calculated using the standard emission factor announced by the Ministry of Economic Affairs. A long-term renewable energy PPA was signed with Chailease Power, with electricity from its solar plants supplying the Neihu office in Taipei. In Thailand, renewable energy was generated for self-consumption.

Notes:
  1. The above statistics are based on 100% self-reported data. Regarding the ISO 14064-1 greenhouse gas (GHG) inventory, third-party verified data is 4,867.595 of category 1 and 8,170.010 of category 2, with a coverage rate of approximately 100%, excluding shared office spaces and short-term car rental stations. The inventory gas includes CO2, CH4, N2O, HFCs, PFCs, SF6 and NF3. Certificate documents are attached behind
  2. Scope 1 primarily covers emissions from company car gasoline use. The calculation is based on the EPA GHG Emission Factor Table (version 6.0.4) and totals 2.263 liters of CO2e / liter of gasoline. Others (fixed, process, fugitive) are verified by a third party to be emission-free.
  3. Scope 2 emissions primarily comprise electricity use. Calculations are based on the Bureau of Energy’s electric power emissions factors and total the following for each year: 0.509(2021), 0.495(2022), 0.494(2023) 0.474(2024) liters of CO2e / kWh. Scope 2 greenhouse gas (GHG) emissions disclosed on a market-based basis reflect the purchase and use of electricity from utility providers in Taiwan, using the unified emission factor announced by the Ministry of Economic Affairs. Company has entered into a long-term corporate power purchase agreement (CPPA) with Chailease Power Technology Co., Ltd. under which renewable energy is sourced from its own solar power plants and primarily supplies the office located in Neihu District, Taipei. A total of 812,000 kWh in renewable energy certificates has been acquired. In Thailand, green electricity is generated through a self-generation model, with 81,730 kWh consumed across 13 service locations.
  4. Scope 3 categories verified by a third party include financed emissions, fuel- and energy-related activities, business travel, purchased goods and services, and waste transportation and incineration. Other Scope 3 categories were self-assessed. For details, please refer to Appendix 06: Environmental Data.
  5. The Global Warming Potential (GWP) values used are based on the Intergovernmental Panel on Climate Change (IPCC) Sixth Assessment Report.
  6. In 2024, the emissions associated with the investment and financing portfolio showed a substantial reduction from 2023, mainly attributable to the exclusion of outliers in accordance with the PCAF methodology.
  7. Since 2022, the company has expanded its carbon inventory to Mainland China, ASEAN, and Europe/US, achieving 100% coverage by 2024. To improve data comparability, historical figures were also reviewed and adjusted in 2024.

The fire extinguishers in the Taiwan headquarters building are all 10P-ABC dry powder fire extinguishers, and the sea dragon fire extinguishers containing chlorides and bromides that will affect the earth's ozone layer are not used. The main unit of the air conditioner used on the floor adopts the type of refrigerant R22; the water dispenser adopts R134a and R600a environmentally friendly refrigerants.

Environmental Protection Efforts in Taiwan

Waste and Wastewater

To reduce the volume of waste the Taiwan headquarters has installed recycling collection areas on all floors, including collection of paper, plastic, aluminum and other metals. After simple sorting by employees, the building property management personnel undertake more specific sorting and handling, and finally a recycling company takes the items. In 2024, a total of 133.4 tons of waste and garbage in Taiwan, of which 47.2 tons are recycled and 86.2 tons are not recycled (including kitchen waste), the total carbon emission of unrecycled waste incineration disposal is 29.31 tons/CO2. Each subsidiary overseas has its waste similarly handled by a local property management company. Beginning in 2014 the Taiwan headquarters began recycling of leftover food from prepared meals. Employees perform a simple sorting operation after which a livestock feeding company handles the remains. A cleanup company processes ordinary garbage through incineration.

The headquarters water source is within the Taipei Waterworks. It does not have any groundwater or other source of water supply, and water at the building is only for employee use. The household wastewater thus produced is discharged into sanitary sewers. Overseas, Chailease subsidiaries discharge wastewater into underground wastewater conduits and thence into rivers and the ocean. There is no significant impact on water sources.

Energy and Water Management

According to the energy and resource usage statistics of each operating site of the company, the total water withdrawal in 2024 is 45,607 liters(45.6 megaliters) in Taiwan, and the total electricity consumption of the company is 7,956,034 MWh (28,641,722 MJ) in Taiwan. In 2024, due to the expansion of operational sites, per capita electricity consumption increased by 3.4% compared to the base year, while per capita water consumption—measured solely in office settings where water use is considered negligible—decreased by 2.2%. The company continues to implement various energy-saving and carbon-reduction measures and promotions to enhance employees' awareness of environmental protection and reduce per capita consumption.

The use of internal operational energy will be reduced before setting a gradual increase in the ratio of renewable energy use every year. In 2024, Company Headquarters in Neihu already switched to supplying 81.2kWh (2,923 GJ) of green electricity, and will gradually increase this amount annually in hopes of using 100% green electricity across Taiwan by 2030.

For overseas subsidiaries of Chailease Holdings, the total water withdrawal from water stress areas (medium-high to high) was 40,479 kWh (40.479 million liters). Please refer to the environmental sustainability related data in the Appendix.

Internal Carbon Pricing

In response to the global net-zero trend, the Company initially set a goal of reducing the total electricity consumption of the headquarters building by 20% by 2020, with 2015 as the base year. However, because of a complete renewal of power-saving lamps and other equipment, the target has been achieved ahead of schedule. In order to continue improvement, we promoted environmental protection and raised awareness of energy conservation and carbon reduction, changing the target setting to 2020 as the base year, promoting the reduction plan year by year, and integrating the internal carbon pricing system into the management mechanism to drive behavioral change within the Company.

Chailease Holding first introduced an internal carbon pricing system for its Scope 1 and Scope 2 greenhouse gases, utilizing the spirit of user-pay, and levied a carbon fee on each business department based on the greenhouse gas emissions from energy consumption, which is currently priced at approximately NT$7,465/tonne of CO2e, prompting each department to take actions to reduce carbon emissions through the fee. In the fourth quarter of 2024, we further followed the spirit of internal carbon pricing to include Scope 3 financing business in Taiwan, targeting financing cases for high-carbon emitting industries based on the proportion of capital investment. To promote low-carbon financing, in the fourth quarter of 2024, we adopted the spirit of internal carbon pricing and included the Scope 3 financing business in Taiwan in our internal carbon pricing considerations. For financing cases targeting high-carbon-emission industries, we calculated the amount of carbon emissions of the credit customers based on the proportion of their capital investment, and levied an additional carbon emission cost on the business units, and the carbon fee is currently set at NT$600/tonne of CO2e.

All fees collected are used as carbon funds to promote internal carbon reduction efforts, including carbon fund management, organizing environmental activities, and purchasing energy-saving equipment and green energy. Through the introduction of internal and external carbon pricing systems, the Company will gradually change its internal planning and decision-making on performance improvement and financing of customer industries, and gradually move toward the goal of net-zero emissions.

In accordance with the “Code of Practice on Corporate Social Responsibility” approved by the Board of Directors in 2011 and the “Operational Procedures and Behavior Guidelines for Integrity Management” in 2014, Chailease Holdings' supplier management policy explicitly stipulates the legality and integrity of supplier management policies and requires suppliers to follow relevant regulations on issues such as environmental protection, occupational safety and health, or labor human rights, and to avoid dealing with those in conflict with the CSR policy. If a supplier is involved in a policy violation that has a significant impact on the environment and society in the supply source community, we may terminate or cancel the contract at any time.

The “Supplier Social Responsibility Code” was established in 2014 to regulate suppliers to meet ethical standards, respect labor and human rights, and environmental sustainability. In 2015, a new “Supplier Code of Conduct” was established to include violations of integrity contracts. In 2021, the revised name was changed to “Supplier Corporate Social Responsibility Code.” In 2022, rename “Supplier Human Rights and Environmental Sustainability Clause and Integrity Commitment” which added Integrity Commitment Clause. in the hope that suppliers will work together to achieve the goals of good ethical standards, respect for labor and human rights, and environmental sustainability, and the content of the code includes labor, environment, safety and health, anti-corruption & anti-bribery, ethics and management standards for sustainable development. The main types of suppliers are consulting services, interior design services, information technology services and energy technology services.

Regulated Items

Direction of Implementation
Implementation Measures
  1. Holding communication meetings: Holding periodic communication meetings with suppliers to promote CSR policies.
  2. Education and training promotion: Provide education and training to assist suppliers in building CSR management capabilities.
  3. Targeted suppliers: Suppliers with whom the Company's cumulative transaction amount reaches NT$1 million or more in the current year and who sign the “Supplier Human Rights and Environmental Sustainability Clause and Integrity Commitment”.
Implementation
  1. The “Supplier Corporate Social Responsibility Guidelines” were revised and renamed as the “Supplier Human Rights and Environmental Sustainability Clause and Integrity Commitment.”
  2. Produced supplier education and training handouts and invited suppliers to participate in online courses.
  3. Chailease Holdings and its subsidiary Taiwan suppliers signed the “Supplier Human Rights and Environmental Sustainability Clause and Integrity Commitment”, with a 100% completion rate. A total of 116 suppliers signed the agreement, representing an increase of 28 compared to 2023.
  4. ESG self-assessment questionnaires were distributed to suppliers with transaction amounts exceeding NT$1 million, totaling 63 suppliers, with a 100% completion rate.
Evaluated Items and Results

The average score of the ESG self-assessment survey was 70.5. Based on the performance of suppliers, those who did not achieve 50 points were analyzed for scale and industry attributes, and further subdivided into standard conditions for subsequent evaluation of counseling and improvement, and cooperation will be terminated if significant negative impacts are identified. At present, none of our suppliers are engaged in child labor, major labor cases, or major environmental impacts.

Chailease Energy-Promoting the positive cycle of solar photovoltaic supply chain

In order to drive the positive cycle of the solar power industry and the supply chain, and to bring into play the sustainable impact of the responsible supply chain, Chailease Energy, a subsidiary of Chailease Holdings, requires its suppliers to fulfill their corporate social responsibility, to provide a safe working environment, to value human rights in labor relations, to comply with ethical operation, and to promote environmental protection.

In early 2022, we also revised our supplier and partner selection criteria, institutionalized the promotion and evaluation of supplier and partner qualifications, and included environmental management, social commitment and Company operations with reference to the positive ESG list items. The written review is combined with on-site evaluation, scoring and evaluation to select suitable suppliers and partners as the priority reference for cooperation selection. We also require suppliers to sign a commitment letter and conduct occasional visits to track the continuous improvement in order to improve the performance of supply chain management and move forward together towards the goal of sustainable development.

We invest in sustainability management, including polysilicon and silicon crystals in upstream industries; solar cells and modules in midstream industries; and suppliers and construction materials and equipment in downstream industries, including system construction EPC (Engineering, Procurement, and Construction) manufacturers, aluminum brackets, steel structures, electrical and mechanical panel manufacturers, monitoring manufacturers, and other peripheral related industries.

Following an ESG project evaluation for the 146 new partners added this year, the average score was 43. Further analysis of their performance found that each company is operating legally and in compliance with the law. There are no companies with significant negative impacts that need to be terminated. However, due to the fact that most of the companies are small and medium-sized enterprises, factors such as operational performance meant minimal investment in environmental management policies and minimal performance in areas like sustainable work practices. As such, Chailease Holdings plans to share corporate resources in the future to help enhance the ESG awareness of its partners and improve their related performance.

Sustainable Procurement Principles

Items Evaluated

In accordance with the green procurement policy promoted by the Environmental Protection Agency (the products with green labels and energy-saving labels, the certification fees for environmental and energy management systems) and with reference to the spirit of ISO 20400 sustainable procurement guidelines, the concept of sustainability management is incorporated into the procurement policy and procurement practices, requiring partner companies to participate in following green procurement guidelines and designing or producing products that meet green specifications in order to fulfill their corporate responsibilities and expand their influence. We select 100% of local manufacturers as our partners for all procurement cases.

In the “Supplier's Commitment to Human Rights and Environmental Sustainability”, suppliers are explicitly required to evaluate the environmental and social impacts of their procurement practices on the regions from which they supply, and to use relevant materials or services in a manner that protects the natural environment and safeguards the interests of local residents.

Use or procure energy-saving equipment and implement energy-saving measures as far as possible, and give priority to the use of recycled and reused alternative materials in the production of products or the provision of services in compliance with product quality requirements, in order to reduce the negative impact on the environment and society, and to avoid the use of substances that are harmful to the environment and local residents.

Reduce the emission of pollutants, toxic substances and waste, and properly dispose of waste in accordance with relevant laws and regulations to reduce the impact and harm to the environment.

In the supplier selection and management regulations, the raw material procurement policy encourages local procurement, procurement of energy-saving labeled products, and the adoption of friendly processes or the use of environmentally friendly materials and equipment.

Purchase Amounts

Chailease Holdings' headquarters in Neihu is promoting energy equipment improvement and green commodity procurement. We will continue to expand our scope and projects in the future.

Safety and Health Education Training and Counseling for Contractors

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