Sysgration Ltd.

Greenhouse Gas Emissions

The source of greenhouse gas emissions at Sysgration mainly arises from electricity consumption. Based on the emissions factors provided by Taiwan Power Company and the company’s total electricity usage, Sysgration’s greenhouse gas emissions over the past three years are as follows:

 

Greenhouse Gas Emission	2022	2023	2024
Scope 1 (tons CO2e) (Note 1)	25.59	26.11	206.80
Scope 2 (tons CO2e) (Note 2)	2,345.33	2,590.18	2,348.97
Total Emission (tons CO2e)	2,370.92	2,616.29	2,555.77
Emission intensity (tons CO2e／million TWD in revenue) (Note 3)	0.69	0.79	0.76

Note 1: Greenhouse gas emissions are calculated using the operational control approach. Emissions are determined based on the activity data, with emissions factors referenced from the greenhouse gas emission factor management tables announced by the Environmental Protection Administration

Note 2: The reporting boundary covers Taipei Headquarters, Nankang Plant, Huizhou Plant, subsidiaries including Power Tank Energy, and the Zhenjiang Plant.

Note 3: Emissions intensity is calculated as Scope 2 emissions divided by Sysgration’s revenue per million TWD.

 

Sysgration’s greenhouse gas emissions are predominantly derived from scope 2 emissions from purchased electricity, accounting for approximately 92% of total annual emissions. Over the past three years, as business operations have expanded, total greenhouse gas emissions have increased despite the implementation of various energy saving and carbon reduction projects, as well as upgrading equipment initiatives. However, emissions intensity per million TWD in revenue has declined, demonstrating improved carbon efficiency.

In response to the potential business impacts of climate change, Sysgration took a proactive approach by establishing group-wide greenhouse gas inventory practices in 2024, ahead of regulatory requirements in Taiwan. Sysgration formally conducted inventories for Scope 1 and Scope 2 greenhouse gas emissions in accordance with the GHG Protocol methodology. Through standardized procedures and more detailed identification of emission sources, the completeness, accuracy, and traceability of Scope 1 data have been significantly enhanced. The inventory scope was expanded to include fuel usage from both stationary and mobile equipment, ensuring greater alignment with international standards and improved consistency for year over year comparisons.

 

Sysgration has updated its carbon reduction targets using 2024 as the baseline year. We aim to reduce Scope 1 and Scope 2 greenhouse gas emissions by 4.5% annually in the short to medium term, achieving a cumulative 25% reduction by 2030. In the long term, Sysgration is committed to achieving net zero carbon emissions by 2050.

 

To advance greenhouse gas reduction, Sysgration has implemented a range of initiatives, including promoting paperless office operations, procuring environmentally friendly products and raw materials, encouraging employees to bring reusable tableware, and upgrading equipment at the Nankang and Huizhou plants with high energy efficiency automated production lines and best available manufacturing practices. Through the continued execution of these measures and actions, Sysgration is steadily reducing its greenhouse gas emissions.

 

Looking ahead, as revenue continues to grow, Sysgration remains committed to advancing toward its greenhouse gas management and reduction objectives.

 

Waste Management

The waste generated by Sysgration is currently classified into non-hazardous industrial waste and hazardous industrial waste. Non-hazardous industrial waste mainly consists of common office waste, international shipping wooden crates used for component packaging, and electronic waste such as cables and wires. This category accounts for approximately 91.4% of total waste generated. Hazardous industrial waste represents only 8.6% of the total and primarily consists of waste printed circuit boards.

Sysgratrion handles waste disposal with responsibility according with the Waste Disposal Act and implements comprehensive resource recycling mechanisms. Waste treatment is carried out through annual contracts with qualified waste disposal companies, under which management procedures and operational practices are clearly defined. The company conducts regular collection, recycling, and reuse in accordance with actual waste generation conditions. In recent years, none of the contracted companies engaged by Sysgration has been involved in any breach of contract.

Waste generation for the most recent three years and the baseline year are as follows:

Waste Category	2021	2022	2023	2024
Hazardous Industrial Waste (tons)	0.92	2.28	4.26	6.93
Non-hazardous Waste (tons)	126.31	138.00	80.05	73.22
Total Waste Collected and Transported (tons)	127.23	140.28	84.31	80.15
Waste Intensity (tons/ million TWD revenue)	0.052	0.041	0.026	0.026

Note: The reporting boundary covers Taipei Headquarters, Nankang Plant, Huizhou Plant, subsidiaries including Power Tank Energy, and the Zhenjiang Plant.

Sysgration will reduce waste at the source through process design optimization, technological enhancement, and continuous promotion of material reuse.

Using 2021 as the baseline year, we achieved a 50% reduction in waste intensity per TWD 1 million in revenue by 2024. The company will continue to implement various waste reduction measures, including:

1. Ongoing promotion of source separation and waste reduction through automated production lines, process improvements, raw material reduction, and circular reuse of packaging materials within plant facilities.

2. Ensuring that waste generated at plant sites is handled in compliance with regulatory requirements and that resource recycling mechanisms are effectively implemented.

3. Implementing proper recycling classification for waste batteries, toner cartridges, plastic bottles, and paper products.

4. Promoting waste reduction initiatives across all employees.

 

Waste intensity has decreased from 0.052 tons per TWD 1 million of revenue in 2021 to 0.041 tons in 2022, 0.026 tons in 2023, and remained stable at 0.026 tons in 2024, representing reductions of 21.1% and 50%, respectively. These results demonstrate the effectiveness of Sysgration’s waste reduction initiatives. Sysgration will continue to further mitigate the environmental impact of its operations through ongoing process optimization and enhanced resource management.

 

Water Resources Management

All water sources currently used by Sysgration are supplied by municipal water systems. Water used at all facilities is limited to domestic purposes, with no industrial water consumption. Wastewater is collected and discharged in accordance with local regulations and treated at the wastewater treatment facilities of the industrial parks where the respective facilities are located prior to discharge.

Water consumption in the past three years:

 

Year	Taipei Headquarters (ton)	Nankang Plant (ton)	Huizhou Plant (ton)	Power Tank Energy (ton)	Zhenjiang Plant (ton)	Total Water Consumption (ton)	Water Consumption Intensity (tons/ million TWD in revenue)
2021	2,756	6,994	6,659		1,918	18,327	7.47
2022	2,772	6,892	5,832		1,640	17,136	5.03
2023	2,587	4,977	4,926	136	1,502	14,128	4.30
2024	2,686	4,762	3,823	254	1,691	13,216	4.25

Note: The reporting boundary covers Taipei Headquarters, Nankang Plant, Huizhou Plant, subsidiaries including Power Tank Energy, and the Zhenjiang Plant.

 

In recent years, the increasing frequency of extreme weather events has increased the risk of water scarcity. In response to external water-related environmental pressures and global water shortages, Sysgration has designated 2021 as baseline year and set a target to reduce water intensity per TWD 1 million in revenue by at least 50% in 2025. Through concrete actions, Sysgration is committed to advancing sustainable water resource management. The key measures implemented include:

1. Posting water conservation reminders to encourage employees to develop the habit of turning off water when not in use.

2. Installing sensor-activated faucets to reduce unnecessary water consumption.

3. Equipping washbasins with water-saving devices to prevent excessive water flow and waste.

Water intensity for 2022, 2023, 2024 decreased from 7.47 metric tons per million TWD in revenue in 2021 to 5.03, 4.30, and 4.25 metric tons, respectively. This represents reductions of 32.6%, 42.4%, and 43.1%, demonstrating a year-on-year improvement in the Company’s water use efficiency.