▌GHG Emissions Target, Implementation Status, and Plan

Since 2022, Shieh Yih has established the GHG Inventory Management Procedures in accordance with the “GHG Emission Factor Management Table (Ver. 6.0.4, June 2019)” published on the National GHG Registration Platform of the Environmental Protection Administration, Executive Yuan, as well as the international standard ISO 14064-1:2018. These procedures are used to conduct and manage the inventory of organizational GHG emissions. Through systematic and standardized operating processes, the Company has enhanced the accuracy of the inventory and the effectiveness of management, providing a solid foundation for subsequent carbon reduction initiatives.

Based on Shieh Yih’s GHG inventory data over the past three years, the Company’s GHG intensity (covering Scope 1 and Scope 2) has shown a consistent downward trend. It decreased from 0.8714 tCO₂e per NT$ million turnover in 2022, to 0.7215 in 2023, and further to 0.6109 in 2024, representing a cumulative reduction of 29.9% over the three-year period. This continuous annual decrease demonstrates the effectiveness of the Company’s improvements in GHG management, implementation of energy-saving and carbon reduction measures, and enhancements in operational efficiency, resulting in a significant reduction of carbon emissions per unit of revenue. Looking ahead, Shieh Yih Machinery will continue to optimize production processes, introduce energy-efficient equipment, and drive low-carbon transition, moving toward the goal of resilient and sustainable operations. The GHG emissions over the past three years are as follows:

▌Description of GHG Inventory in 2024

• Organizational Boundary Setting: For the GHG inventory, the Company adopted the “Operational Control Approach” in accordance with ISO 14064-1:2018 and the GHG Protocol. All GHG emissions from facilities under the Company’s management or operational control were fully accounted for using the 100% recognition principle.
• Scope of Inventory Boundary: Taiwan Taoyuan Headquarters and four dormitories.
• Emission Category Boundary: Includes Category 1 (stationary sources, mobile sources, fugitive sources, and process emissions), Category 2 (purchased electricity), Category 3 (upstream transportation and business travel), Category 4 (purchased products, purchased fuels and energy resources, and waste treatment and disposal), Category 5 (downstream leased assets), and Category 6 (indirect GHG emissions from other sources). Category 6 was assessed as a non-material emission source under the significance evaluation standards of the GHG inventory and was therefore excluded from the 2024 inventory items.
• GHG Types Covered in the Inventory: Seven types of GHGs were included: CO₂, CH₄, N₂O, HFCs, PFCs, SF₆, and NF₃.

The analysis of total GHG emissions in 2024 (Unit: tCO₂e) is presented in the following table:

▌Implementation Status

The GHG inventories of the Taiwan Plant for 2022 and 2023 were verified by AFNOR ASIA, an independent third-party organization, in accordance with the verification standards of ISO 14064-1:2018.

The verification for 2024 was completed on March 25, 2025, and the verification certificate was obtained on July 18, 2025.

▌Future Plans

• To effectively drive carbon reduction actions, the Company is introducing an Energy Management System (EMS) to enhance energy efficiency through intelligent monitoring and energy-use analysis. This will lower carbon intensity and further strengthen the Company’s capability for low-carbon transition in its operating processes, injecting long-term momentum into corporate sustainability and environmental protection.
• Based on recent GHG inventory data, in Q1 2025, following review by the Sustainability Development Committee, the Company will officially set medium- and long-term carbon reduction targets in line with the Science Based Targets initiative (SBTi). A clear requirement has been established for annual carbon emissions to be reduced by 4.2%, aiming to achieve carbon neutrality by 2030 and net-zero emissions by 2050.
• Starting in 2025, the Company will progressively expand GHG inventories to its operations in China, the United States, Mexico, Europe, and Thailand, with a plan to complete a consolidated GHG inventory and full disclosure by 2027.