ALLTOP TECHNOLOGY

(I) Board of Directors - Oversight of Climate-Related Risks and Opportunities

• The Board of Directors serves as the highest management unit for climate-related risks within ALLTOP. The goal of supervising the company's overall climate-related risk management is to comply with laws and regulations, to understand the risks faced by operations, and to ensure the effectiveness of risk management.
• The above-mentioned climate-related actions, such as those involving major investments and projects, are also supervised be the board of directors.

(II) Management - Responsibility for Assessing and Managing Climate-Related Risks and Opportunities

• ALLTOP pays attention to and responds to global sustainable development issues (UN SDGs). While doing business, ALLTOP will protect the sustainable development of the earth's environment. Reduce the use of hazardous substances through product development, and require suppliers to provide environmentally friendly raw materials to reduce the impact on the environment, care for sustainable development, and fulfill social responsibilities.
• In terms of sustainability-related laws and regulations (including climate-related laws and regulations), supplier specifications, and strategies for specific industry issues, ALLTOP coordinates various responsible departments to implement specific sustainable issues.
• ALLTOP follows the four aspects disclosed by TCFD to conduct discussions on climate governance, strategy, risk management, and indicator objectives, and incorporates climate-related issues into the risk management process.

(I) Identify Short-, Mid-, and Long-Term Climate-Related Risks and Opportunities

(II) The Impact of Climate-Related Risks and Opportunities on Operations, Strategies and Financial Planning

(III) The Potential Impact of Different Climate Scenarios on Business Operations, Strategies and Financial Planning

• Based on public data such as the shared socioeconomic path (SSP1-sustainable development path) and RCP2.6 climate scenarios, in conjunction with different time frames, the "Taiwan Climate Change Projection Information and Adaptation Knowledge Platform" (TCCIP) database is used to screen and evaluate Long-term climate-related risks.

• The Executive Yuan submitted my country's NDCs (National Determined Contributions) to the international community in 2015, with the goal of "reducing greenhouse gas emissions by 50% of BAU by 2030", which is equivalent to reducing emissions by 20% compared to the base year 2005. The stage goal and key strategy of the net zero transformation is to increase or decrease the NDC target by 24% plus or minus 1 percentage point in 2030.
• In view of the fact that purchased electricity is the main source of greenhouse gases produced by the company, in order to evaluate the changes in energy costs caused by rising or falling electricity costs, the company has launched an energy saving and emission reducing assessment mechanism and publicity, and equipment such as machines and lighting are upgraded and regularly maintained and repaired, so as to It is a reference for future evaluation and decision-making of the company's power energy use.

(I) Identification of Climate-Related Risks and Assessment Process

• The company has long observed and evaluated the sustainable development trend of the electronics (connector) industry, and integrated climate, environment, society and corporate governance and other related risk factors into the overall risk assessment management process. And follow the "Sustainable Development Best Practice Principles" to ensure the practice and promote economic, social and environmental ecological balance and sustainable development. In addition, through diversified collection of global carbon reduction trends, government regulations of various countries, and potential customer needs, etc., and then respond to relevant units through internal communication and coordination in accordance with the above conditions and needs. Response strategies and actions will be formulated for risk factors that may affect operations.。
• For climate risk identification, a three-layer defense mechanism is used to effectively control climate-related operational risks through risk factor assessment and analysis. The first line of defense is the business units, which identifies climate-related risks according to its business content, responds and implements response strategies. The second line of defense is the climate risk management unit, which is responsible for assisting in monitoring the implementation of the first line of defense for climate risk management. The third line of defense is the supervision and audit unit, which evaluates and audits the effectiveness of climate risk management in the first and second lines of defense, and assists in the review and improvement of overall risk control issues.

(II) Processes for Managing Climate-Related Risks

(III) Identify how Processes for Identifying, Assessing, and Managing Climate-Related Risks are Integrated with ALLTOP's Overall Risk Management Mechanism

• Through the discussion, inspection, analysis and communication of various units, the company will submit a review and reply to the risk management unit. Take appropriate mitigation and related decision-making measures for the possibility and impact of climate risks.
• The risk rights and responsibility management unit includes major climate risks and opportunities in the assessment and response decisions to ensure that the company's major climate-related risks/mechanisms are assessed, grasped and reported, so as to effectively integrate climate change-related risks into the company's corporate risk management mechanism.

(I) Indicators for Assessing Climate-Related Risks and Opportunities

Item	Sustainable Development	2023	2022	2023 Target Status
Green House Gas(Carbon emissions ) Management Objectives	ALLTOP takes 2020 as the base year to target reducing carbon emissions by 6% in 2025.	4,324.60	4,876.87	-19.11%
Water Resources Management Objectives	ALLTOP takes 2020 as the base year, and it is estimated that the tap water intensity index in 2025 will be reduced by 2%.	52,553	49,096	+7.04%
Waste Management Objectives	ALLTOP takes 2020 as the base year to target the waste reduction by 27% in 2025.	179.43	201.82	-11.09%

(II) Greenhouse Gas Emissions

(III) Management Objectives and Achievement of Climate-Related Risks and Opportunities (Performance)

• Scope 1 and Scope 2 greenhouse gas emissions totaled 4,876.87 tons of CO2e in 2022, mainly from electricity emissions in Scope 2, 96.61% of total emission and followed by Scope 1 mainly from fuel emissions used in public systems, accounting for 3.39%.
  ALLTOP continues to promote various energy-saving and carbon-reducing, and "Love the Earth and Cherish Resources" measures within the enterprise, which are as follows:：
  (1) Implement resource recycling and classification.
  (2) Save water.
  (3) Turn off lights during lunch breaks and energy-saving measures for office air conditioning host.
  (4) Regular maintenance of air conditioners.
  (5) Energy-saving settings for office machines.
  (6) Office lighting, based on the principle of gradually replacing with LED higher with higher energy efficiency
  In 2023, under the management of various energy-saving and carbon-reduction measures, approximately 552.27 tons of CO2e carbon emissions (scope 1 and scope 2) were reduced, which was 11.32% lower than last year.
  Taking 2020 as the base year, the Company sets short-term (1-3 years), medium-term (4-5 years) and long-term (6-8 years) greenhouse gas carbon reduction targets of 5%, 6% and 7% respectively, makes every effort to protect the global environment in order to achieve sustainable operations.
  The current achieved situation of the Company: Taking 2020 as the base year, greenhouse gas emissions has reduced by 19.11%.
• The Company has been paying attention to the issue of water resources energy conservation and environmental protection for many years. In terms of water conservation plans, we start from saving water in daily life and maximize the benefits of available water resources.
• The Company has been committed to cherishing water resources for many years and has invested in a number of improvement measures, and continues to publicize water conservation policies to employees. For the future water usage target, the Company takes 2020 as the base year, and it is estimated that the tap water intensity index in 2025 will be reduced by 2%. At present, the company uses 2020 as the base year, and the reduction effect of water intensity indicators has reached 1.09%.
• The Company is committed to environmental protection in order to achieve sustainable resources reuse. The Company's waste treatment principle is to prioritize recycling in the factory to reduce the use of raw materials, and secondly through resource recycling and reuse etc.
  "Zero waste" is the ultimate goal of the Company's waste management. The Company uses source management measures such as technology improvement and reduction of raw material waste to reduce waste output. The waste output in 2023 was 179.43 tons, a decrease of 11.09% compared with the output in 2022. For the future goal of the waste reduction, the Company takes 2020 as the base year to target the waste reduction by 27% in 2025, and continues to implement waste reduction and gradually reduce the negative impact on the environment. At present, ALLTOP takes 2020 as the base year, and the waste reduction effect has reached 52.28%.
• With the concept of sustainable development goals, ALLTOP continues to promote various energy-saving programs, and sets short-, mid-, and long-term reduction targets as reference indicators for energy-saving and reduction observations.