Building a sustainable enterprise model that is low-carbon, naturally resilient, and has growth potential

        In an era of increasingly severe climate and ecological crises, businesses are no longer just economic participants, but also guardians of the earth's sustainability.

                According to the World Economic Forum's 2025 Global Risks Report, five of the top ten global risks in the next decade will come from the environmental sector, with "extreme weather events" ranking first for two consecutive years, indicating that climate disasters have not only become a daily occurrence, but also profoundly affect business operations and supply chain stability. In addition, risks such as biodiversity loss and ecosystem collapse, significant changes in the Earth's system, and natural resource scarcity continue to rise, posing increasingly severe threats to society and the economy. Faced with these challenges, Far Eastern New Century Corporation actively engages in climate governance and natural environment protection work. We are well aware that only by laying out early can we turn risks into opportunities and continue to create enterprise value in the wave of low-carbon economy and circular transformation.

        Mastering international trends and strengthening climate governance resilience

        Far Eastern New Century Corporation has been following the Task Force on Climate related Financial Disclosures (TCFD) framework since 2019, identifying climate risks and opportunities annually, and proposing specific response strategies. In 2020, it became the first traditional industry in Taiwan to sign a declaration supporting TCFD. In 2023, it released the first Task Force on Climate related Financial Disclosures (TCFD) report, which is the first report in Taiwan to comply with the International Financial Reporting Standards (IFRS) Sustainable Disclosure Standard (Draft) S2 on climate related disclosures and align with new trends in international climate information disclosure. Faced with the implementation of Taiwan's carbon pricing system, we will continue to strengthen our internal management tools and introduce the "Internal Carbon Pricing System" in 2023, which will be officially implemented from 2024 and incorporated into investment and operational decisions to enhance our competitiveness in the net zero era.

        Accelerate net zero transformation and build a green and low-carbon industrial chain

        In response to the global trend of sustainable net zero, Far Eastern New Century Corporation is accelerating its carbon reduction actions and determination. Following the Paris Agreement's global warming limit of 1.5 ° C, the company has set a transformation goal of reducing carbon emissions by 50%, green raw materials by 50%, and green products by 50% by 2030, demonstrating active carbon reduction determination and moving towards the net zero emissions target by 2050. At the COP29 conference held in November 2024, our company will also showcase its recycled economy and carbon reduction highlights, leading the industry's low-carbon transformation on the world stage. In addition, our company has achieved the highest level of "A-level" in the latest CDP evaluation for the first time in "Climate Change", ranking among the global sustainable leadership companies.

        Protecting natural capital and co creating the value of biodiversity

        Biodiversity and natural capital are not only the foundation of human survival, but also indispensable resources for business operations. Far Eastern New Century Corporation has actively responded to the development trend of Natural Related Financial Disclosures (TNFD) and initiated the identification of natural risks and opportunities, focusing on water resource protection, environmentally friendly processes, and raw material management, gradually strengthening the governance mechanism of natural issues. We also reduce our dependence on natural resources and establish a sustainable supply chain management framework by promoting the development of renewable raw materials and the application of bio based products.

        Far Eastern New Century Corporation will collaborate with Today Magazine and the Penghu Fisheries Biology Research Center of the Ministry of Agriculture's Fisheries Research Institute in 2025 to discuss and launch a seagrass restoration project in the Penghu waters. As of July 2025, 1200 seagrass plants have been successfully planted. This plan will continue to advance, and in the future, based on the progress of the plan, the area of seagrass restoration will be expanded, and cooperation between both parties will be deepened to enhance the biodiversity of the restoration area.

        Looking forward to the future and working together to create a green and resilient future

        Sustainability is not a short-term goal, but the core of corporate governance. Far Eastern New Century Corporation has won the Taiwan Corporate Sustainability Award (TCSA) - Taiwan's Top 10 Sustainable Model Enterprises Award for the fifth time. In 2024, it was selected for the first time in the Dow Jones Sustainability Index (DJSI) - Emerging Market Constant Stock, making it the only comprehensive industrial enterprise in Taiwan to be selected. These affirmations are the best feedback for our climate and nature actions.

        Faced with the crossroads of climate risks and natural resource challenges, Far Eastern New Century Corporation will continue to focus on green innovation, international integration, and forward-looking governance, creating a low-carbon, resilient, and growth potential sustainable enterprise model, and working together with stakeholders to move towards a more stable and sustainable future. (This article is reprinted from Far Eastern New Century Corporation's "Chairman's Words" in the Climate and Nature Related Financial Disclosure Report.)

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