Governance

Radiant Opto-Electronics Climate Governance and Management Responsibilities Radiant Opto-Electronics has established the “Sustainability Development Committee” as the highest governance body for climate issues. It consists of 7 members, including 4 independent directors, chaired by the President and the highest executives from the Group Operations and Manufacturing Center and the Group Administrative Center serve as the Vice Chairpersons. The committee convenes at least once a year and regularly reports ESG strategies and implementation results to the Board of Directors. Report topics include climate change risks, performance results, and work priorities. The Board of Directors is responsible for supervising the impact management procedures and results of the Sustainability Development Committee to ensure the implementation of sustainable development strategies in the Company operations.In order to strengthen and implement Radiant Opto-Electronics’ determination and practice in climate governance, a total of 2 meetings were held in 2023.

Strategy

In response, Radiant Opto- Electronics has established a TCFD Working Group to coordinate and synthesize the identification of climate risks and opportunities. This effort is aimed at understanding various risks and opportunities and their potential impacts on operations and business activities. The Company has put in place effective measures to mitigate the financial effects of climate risks on the Group, while also enhancing its grasp and developmental prospects concerning climate opportunities. Therefore, Radiant Opto-Electronics analyzed and evaluated the climate strategy resilience based on the application transformation, the two types of physical risks and the worst-case scenario (The Worst-Case Scenario) "SSP5-8.5" recommended by TCFD.

Risk Management

In order to effectively implement risk management and reduce the impact of various risks on the operation of Radiant Opto-Electronics, Radiant Opto- Electronics has constructed a hierarchical risk management process based on the level and functional units of various types of risk issues. The overall climaterelated risk management process has been improved based on the impact of different management levels and risk issues.

Indicators and Goals

The Carbon Management Team under the Sustainable Development Committee of Radiant Opto-Electronics is composed of various group entities, including the Equipment Department, Environmental Affairs Department, Procurement Department, Logistics Department, and Research & Development units, etc. Through the crossdepartmental discussions, sets climate change performance indicators including greenhouse gas emissions, electricity savings, renewable energy utilization rate, energy-saving projects, supplier carbon reduction actions, waste, and water consumption to achieve the Group’s sustainable development goals. Since 2020, the Company has conducted greenhouse gas inventory for categories 1 to 6 in accordance with ISO 14064-1:2018. Based on the inventory results, we have implemented carbon reduction measures and energy-saving equipment replacement projects to reduce greenhouse gas emissions. The Sustainable Development Committee reviews the achievements of the sustainable goals.

GHG Inventory

Radiant Opto-Electronics refers toISO 14064-1:2018, the Climate ChangeResponse Act, the Greenhouse Gas Emission Inventory and Registration Management Measures, the Greenhouse Gas Inspection Guidelines, the Greenhouse Gas Registration Guidelines, and the WBCSD/WRI Greenhouse Gas Inventory Protocol, setting organizational boundaries based on 100% operational control. At present, third-party certification organizations are responsible for verifying all greenhouse gas emissions in Scope1, Scope2, and Scope3, in compliance with international standards.

In 2022, the total greenhouse gas emissions of Radiant Opto-Electronics were approximately 107,600 TCO2e (Scope 1 and Scope 2). The greenhouse gas emissions intensity of Scope 1 and 2 in 2022 decreased slightly by 2% compared to 2021 and decreased by 35% compared to 2015 (2025 is the base year of the Sustainable Development Goals). The greenhouse gas emissions within the organization mainly come from Scope 2 indirect greenhouse gas emissions, accounting for about 98%. The types of greenhouse gases inventoried include carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), nitrogen trifluoride (NF3), and sulfur hexafluoride (SF6). The Global Warming Potential (GWP) values used are derived from the 2021 IPCC Sixth Assessment Report. Emission factors for electricity are referenced from the most recently published data for the location of each facility.