Through the introduction of ISO 14001, ISO 45001, and ISO 14064-1, we DEPO is able to formulate relevant management policies for environmental health, occupational safety, and carbon management issues, establish relevant management policies, such as management procedures, legal compliance, continuous improvement of employee skills, maintenance of environmental order and safety, inventory of GHG emissions at each unit, planning of reduction—all to reduce the environmental impact from organizational activities, provide safe products and services, and ensure the health and safety of employees.

In order to prevent workers from physical harm due to exposure to hazardous substances in the workplace, according to Article 10 of the Regulations Governing Workplace the Environmental Monitoring, "Before conducting the operational environment monitoring, the employer shall plan the sampling strategy based on the hazardous characteristics of the workplace and the related guidance announced by the central competent authority. The implementation shall fully follow the defined operational environment monitoring plan every six months. Reviews and updates are based on the actual needs after the inspection.” The operational environment monitoring policy includes hazard identification and data collection, sampling operation planning and implementation, and data analysis and evaluation. The regular special health examinations for colleagues exposed to potential risks in the workplace are planned to protect the rights and interests of colleagues.

DEPO is committed to improving the overall environmental quality with specific environmental management plans for the waste, waste gas and chemical substances and energy consumption generated in the process of various products, activities and services that may cause environmental impacts.

• Legal compliance: ensure that all activities, products and services comply with regulatory and other requirements.
• Commitment to waste reduction: reduce the formation of waste and promote zero waste and total recycling.
• Pollution prevention: reduce the use of hazardous substances, set up biological filter beds and scrubbing to reduce VOCs emissions, and implement pollution control and management.
• Treasuring resources: adopt appropriate production or pollution prevention and control technologies to make effective use of resources.
• Total participation: communicate our environmental policies to employees and business partners, and incorporate environmental protection concepts into employee training.
• Continuous improvement: promote various environmental protection activities and implement them in daily business operations.
• Good communication: strengthen communication with internal and external stakeholders.

Depo actively strengthens the company's governance functions related to sustainable businesses and sustainable environmental practices. The functional ESG committee is established directly under the board of directors as the highest guiding organization for Depo’s sustainable governance operations. The ESG committee consists of four independent directors and is responsible for setting annual targets for the corporate social responsibility in the economic, environmental and social aspects as well as regularly monitoring the implementation status, which leads Depo’s sustainable developments, enhances and achieves the short-term, medium-term, and long-term goals. The ESG committee meets quarterly and regularly reports its execution plans and outcomes to the board of directors.
The Environmental Sustainability Group is set under ESG committee to improve environmental management performances, low-carbon product developments and environmental risk managements.

In response to the risk and impact of extreme climate on DEPO, the Company has identified material climate risk issues related to the Company based on the materiality principle and the framework of Task Force on Climate-Related Financial Disclosures (TCFD); from which, the extent of impact and opportunities are analyzed, and by identifying physical risks and transformation risks, the climate strategies for material risks are formulated, as the contingency measures to strengthen DEPO's adaptation to extreme climate and risk mitigation. Through regular reviews mitigation measures, a standardized process is established to reduce the response time for future risk handling.

According to the greenhouse gas inventory plan, the greenhouse gas inventory results in 2023 were delivered to external assurance, and ISO 14064 certification has been obtained. Now that the data creation has been completed, internal audits will follow and the results will be submitted to the external assurance unit. Upon the completion, 2023 is defined as the carbon reduction base year. For the carbon footprint inventory of products is planned to be introduced in the second half of 2024. One model of headlights or taillight will be selected each for carbon footprint calculation. Meanwhile, DEPO has established a carbon management platform to better understand GHG emissions and product carbon footprint.

Note 1: The types of gases included in the calculation are carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, sulfur hexafluoride, and nitrogen trifluoride.
Note 2: The source of the global warming potential (GWP) (AR6, IPCC 2021) ratio is adopted. Scope 1 and 2 statistics are indirect measurements.
Note 3: The volume of greenhouse gases is consolidated for operational control.
Note 4: The market coefficient method is adopted for Scope 2.
Note 5: The emission coefficient method (Greenhouse Gas Emission Coefficient Management Table Version 6.0.4) is adopted and converted from the recorded values by using the Iscom intelligent carbon reduction prediction and integration platform.
Note 6: GHG emission intensity includes direct (Scope 1) and energy indirect (Scope 2).

With a firm belief in environmental protection, DEPO actively cooperates with the renewable energy policy, and is committed to reducing the consumption of natural resources and improving production efficiency at the same time. To this end, each plant cooperates with the manufacturer to set up solar power generation equipment on the roof, which can generate 3,160 kW of power per year. In addition to solar power installations, each plant has also implemented a series of energy-saving measures:

• Re-plan the air-conditioning space, optimize the design, improve the efficiency of air-conditioning, and reduce energy waste.
• Replace lighting equipment with LEDs characterized with low energy consumption and long life, to reduce lighting energy consumption.
• Adjust the chiller temperature to reduce the load on the chiller, effectively saving energy consumption.
• Perform air compressor leak detection and maintenance to improve the efficiency of the air compressor system and reduce energy waste.

Through the implementation of these measures, we have successfully reduced energy consumption, reduced the impact on the environment, and improved production efficiency to achieve the goal of green production. We will continue to strive to explore more environmental protection measures and contribute to the construction of a beautiful ecological environment.

In accordance with the ISO 14001 standard, DEPO has set up a dedicated unit to effectively track the source and output of waste, complied with the principles of maximizing the use of resources and minimizing the output of waste, while promoting waste management measures. We reduce the generation of waste in the R&D, design, manufacturing, production, and sales stages, increase the life cycle of each raw material, enhance the circulation of sustainable resources and the reuse of waste, to achieve the goal of waste reduction; the qualified waste disposal units that can effectively treat waste are screened, and the operation process of the waste disposal units is verified via the onsite or form audit to the waste disposal units, to ensure that the generated waste will not cause significant impact on the surrounding environment.

DEPO is committed to promoting reuse solutions for waste, including recycling packaging materials and plastics. For the use of packaging materials, lamp housing and packaging are required to adopt the same specifications as the whole lamp, to increase the reuse rate and reduce packaging material waste. The generated waste is incinerated or reused by a qualified waste disposal company commissioned. DEPO insists on the concept of responsible production, and regularly audits waste disposal contractors to ensure that waste is properly disposed of. In the future, DEPO will continue to pay attention to and improve waste issues.

Note 1: The scope of waste statistics includes the Lukang Plant, the Changbin Plant, and the Xinying Plant.
Note 2: The waste purchased by some resource recyclers and the packaging materials and plastics recycled and reused in the plants are not included in the table above due to the difficulty in obtaining data.
Note 3: The data statistics are mainly based on the industrial waste declaration and management information system or the weighting records.

Note 1: No hazardous waste is generated during the manufacturing process at DEPO.
Note 2: The scope of waste statistics includes the Lukang Main Plant, the Changbin Plant, and the Xinying Plant.
Note 3: The waste purchased by some resource recyclers and the packaging materials and plastics recycled and reused in the plants are not included in the table above due to the difficulty in obtaining data.
Note 4: The data statistics are mainly based on the industrial waste declaration and management information system or the weighting records.

In 2023, the operations of Depo did not happen any significant incidents related to environmental pollutions that resulted in financial compensations or losses.