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:

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, Zhenjiang Plant, and Leadray Energy.

Note 3: Emissions intensity is calculated as Scope 2 emissions divided by Sysgration’s revenue per TWD 1 million.

Sysgration’s greenhouse gas emissions are predominantly derived from scope 2 emissions (purchased electricity), accounting for approximately 85% of total annual emissions over the past three years. In 2025, there was an increase in Sysgration's total greenhouse gas emissions of 485.37 tons compared to the 2024 baseline year. This increase was primarily driven by the addition of Leadray Energy Co., Ltd. as a consolidated subsidiary in 2024, while the emissions intensity only change slightly and remain below 0.8. The Group will continuously drive its GHG inventory tracking and implement carbon reduction measures across all operating locations.

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.

Starting from 2025, Sysgration has initiated the process of calculating Scope 3 (other indirect GHG emissions) across the 15 categories in accordance with the GHG Protocol Corporate Value Chain (Scope 3) Standard methodology. In 2025, we successfully completed the inventory for three Scope 3 categories: Category 1 (Purchased Goods and Services), Category 6 (Business Travel), and Category 7 (Employee Commuting). Going forward, we will continue to inventory the remaining categories of Scope 3 emissions. Through a more comprehensive and systematic greenhouse gas inventory, we aim to precisely identify the categories and activities with more carbon-intensive emissions across the value chain, providing a key basis for advancing our carbon reduction actions and climate transition strategy.

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 92.28% of total waste generated. Hazardous industrial waste represents only 7.72% of the total and primarily consists of waste printed circuit boards.

Sysgration handles waste disposal with responsibility according to 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. In recent years, none of the contracted companies engaged by Sysgration has been involved in any breach of contract.

Waste Generation Over the Past Five Years:

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

Waste intensity has decreased from 0.052 tons per TWD 1 million in revenue in 2021 to 0.041 tons in 2022, 0.026 tons in 2023, remained stable at 0.026 tons in 2024, and slightly increased to 0.033 in 2025 , representing a 36.54% reduction compared to the base year. Moving forward, Sysgration will continue to further reduce the environmental impact of waste on our operations through product process design optimization, continuous technological enhancements, and the ongoing promotion of material circularity. 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.

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 five years:

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

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. In 2025, water withdrawal intensity has successfully decreased by 38.57% compared to the 2021 baseline. The reduction is mainly attributed to the installation of an intelligent chilled water system at the Nankang Plant, which helps prevent unnecessary cooling water loss. In addition, water usage at the Huizhou Plant decreased due to improved production efficiency resulting from the implementation of production line automation. Sysgration remains committed to enhancing water-use efficiency and will continue to strengthen its water resource management practices to optimize water consumption across all facilities. 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.