Powertech Technology : 2021 TCFD Report

According to the World Economic Forum (WEF), four of the top five risks are related to climate issues, including extreme weather, the failure of climate action, biodiver- sity loss, and human-induced environmental damage, among others. The impact of climate change is clearly visible to businesses, and climate factors are exacerbating impacts across the globe.

As claimed by the National Science and Technology Center for Disaster Reduction and Water Resources Agency, Ministry of Economic Affairs, Taiwan has experienced 1.7 degrees of temperature increase in the past 50 years. "Heat wave-like" temperatures are becoming increasingly commonplace, with both heavy rainfall and non-rainfall days experiencing increased temperatures. A severe drought occurred in Taiwan in 2021, indicating a climate imbalance.

In the face of the impact of extreme climate "green swans", PTI utilizes the framework of the Task Force on Climate-Related Financial Disclosures (TCFD) for identifying potential risks and opportunities related to climate change. As part of the process of identifying and assessing climate change risks and response mechanisms, PTI contributes to the protection and sustainability of the environment.

We are actively addressing the impact of extreme climate change and have undertaken a number of initia- tives. Besides our long-standing efforts to save energy and reduce carbon emissions, improve water recycling efficiency, develop greenhouse gas inventories, and disclose carbon footprints, our company has also launched the PTI Renewable Energy Construction and Procurement Project and the ISO 14067 Greenhouse Gas -

Carbon Footprint of Products Project. In 2021, PTI Hsin- chu Science Park Plant 3 (Plant 11B) has been officially opened. Besides being a qualified green building facility, it is also a key production site for advanced packaging products. In addition to enhancing the industry, the advanced manufacturing process has resulted in products that are more energy-efficient and environmentally friendly, demonstrating PTI's proactive response to climate change.

Taking responsibility as a corporate citizen, PTI began by taking action to combat climate change: we have set strategic management objectives, and we are constantly refining our measures and results in order to achieve environmental sustainability.

The Climate Change Response Milestone of PTI

2021

Establish Renewable Energy, Green Power Construction and Procurement Project.

2022

Launch ISO 14067 Greenhouse Gas -

Carbon Footprint of Products

Project.

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Governance

Strategies

Risk

Management

Metrics and

Targets

The Risk Management Committee regularly reports to the Board on the assessment and management of risks and opportunities associated with climate change.

Conduct short-, medium- and long-term climate risks and opportunities through cross-departmental discussions.

Assess the impact of significant risks and opportunities on the Company's operations and finances.

Identify the impact of risks and opportunities on the company under different climate change scenarios.

Report regularly to the Board and Management Team on the effectiveness of management mechanisms and response measures.

Analyze possible future management initiatives and estimate the financial impact.

Organize workshops to enhance colleagues' understanding of climate change.

Review the progress and performance of the management of climate change risks and opportunities on a regular basis.

Reduce energy consumption by implementing ISO 50001 ISO 50001 - Energy Management System.

Assess the potential sources of carbon emissions by conducting regular greenhouse gas inventories in accordance with ISO 14064-1.

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In response to climate impacts, PTI has developed a set of proce- dures: "top-down command and supervision, bottom-up response and return." By identifying internal risks, operating and connecting relevant organizations, it minimizes the adverse effects of climate change on its operations, and is driving sustainable climate governance.

Participation and

Operation of the Board

The Board of Directors is the core of PTI's operations. They are responsible for approving the company's business plans, finan- cial reports, setting important rules and regulations, approving major investment cases, and overseeing the formulation of strategies and measures to address risks and climate change impacts on the company's operations.

Framework of Climate Change Governance

Board of Directors

The Board of Directors oversees and guides the development of strategies and directions in response to climate change and sustainable development. It consists of 11 members, including four independent ones. In fulfilling its oversight and steering responsibilities, the Board of Directors is assisted by the Risk Management Committee, the Remuneration Com- mittee, and the Audit Committee.

Remuneration Committee

It is the responsibility of Remuneration Committee to establish and maintain poli- cies, systems, standards, and structures for evaluating director and employees in executive positions'performance and remunera- tion, as well as ensuring that individual remuneration is aligned with the Compa- ny's operational performance and ESG per- formance.

Audit Committee

The main objectives of Audit Committee are to monitor the fair presentation of the Com- pany's financial statements, the selection and independence and performance of the certified public accountant, the effective implementation of the Company's internal controls, compliance with relevant laws and regulations, and financial control of existing or potential risks.

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