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Sustainability and Environmental Protection

Environmental Expenditures

Everlight invests in resources of environmental protection equipment, pollution disposition expenses, environmental protection management system and environmental protection education trainings for related personnel in order to reach the goals of abiding by environmental protection regulations, reducing environmental pollutions, and sustainable environmental management. We committed a total of NTD 15.558 million in environmental protection expenditures in 2017, an increase of 22% over 2016. In addition to the extra spending on environmental protection equipment in the Tongluo plant, there were other environmental expenditures to show our support for environmental causes and social responsibility.

Energy and Emissions Management

Electricity, gasoline, diesel and natural gas are the types of energy used by Everlight's factory plants. Every plant is committed to improving the energy efficiency of production and continues to promote energy conservation and reduction of carbon emissions. Based on the goals of corporate social responsibility and sustainability of green manufacturing, every factory plant passes ISO 14001 certification. The establishment of our management policy and measures provide a framework for the Company to optimize its energy efficiency without affecting its current operations. The framework is closely linked to the corporate strategy and objectives, combined with PDCA methodology, to perform continuous improvement of the Company's energy use. The reduction in energy costs also has led to the reduction of greenhouse gas emissions, which in turn achieves sustainable management and environment-friendliness.

Everlight divides greenhouse gas emissions into direct (Scope 1) and indirect (Scope 2) emissions. The direct emissions include process energy such as gasoline, diesel and natural gas. The indirect emissions are mainly purchased electricity. In this report, we do not include Scope 3 and fugitive emissions. We only consider the general energy emissions and calculate the emissions of Scope 1 and 2 based on the 6.0.3 version of greenhouse gas emission factor management table provided by the Environmental Protection Administration. In 2017, Everlight's carbon emissions totaled approximately 119,919 metric tons of CO2e. The facility Shulin is an office building so it is not taken into consideration. The emission intensity of each plant has increased slightly. We will continue to make efforts in energy saving and carbon reduction.

Everlight follows ISO 14001 environmental management system and implements the operation regulations for air pollution. The company also conducts maintenance based on the features of equipment. Competent unit is held accountable for regular inspections. In case control or emission error occurs, the company will implement emergency responding disposition, clarify the cause rapidly and implement improvement control in order to reduce the pollution caused by the production activities. The manufacturing processes used in the facilities in Taiwan do not include substances harmful to the ozone layer or ODS. As of 2017, the Suzhou facility had not completed its ODS identification. We will start establishing identification procedures in 2018. In 2017, the air pollutant emissions in all the facilities were lower than the regulatory standards, as shown in the table below.

Energy Saving and Carbon Reduction Measures

Everlight has been promoting energy saving and carbon reduction. Based on the goal of CSR and green production and sustainable operation, all plants received ISO 14001 environmental management system certification. The main purpose is to provide the company with a structure of necessary procedure through the establishment of management guidelines and methods, which allows the company to comply with and reach the best energy usage efficiency without affecting the current operation. Everlight combines the operation strategy with the goal along with Plan-Do-Check-Action (PDCA) mechanism to consistently improve energy utilization. The company may further achieve the goal of sustainable operation and eco-friendly through reducing energy costs and GHG emission.

In 2017, we saved a total of 2,117,128 kWh of energy, reduced our carbon emissions by about 1,188,419 metric tons and a total cost savings of about NTD 4,314,898. We will continue to promote energy-saving and carbon reduction measure. The results and performance of every facility in 2017 are shown in the table below.

Water Resources Application

In response to the extreme climate changes, the development and distribution of water resources has been a critical issue for countries around the world. Thus, water resources management, water saving, and emergency response for water shortage become a critical part in the risk management for climate change and disaster adaption for corporations. In view of water resources application, Everlight recycles and reuses the water in the production process in manufacturing plants, which allows the water resources may be properly used efficiently. The company also conducts regular internal inspection, review and evaluation, and then it will fix and adjust current facilities and equipment based on the evaluation result. The company will then reevaluate the improvement in order to achieve the ultimate goal of saving water resources. In 2017, the total water consumption was about 796,310 metric tons, an increase of 17.6% over 2016. The main reason was the addition of the Tongluo facility in 2017, thus increasing the total water consumption.

In addition, Everlight also conducts promotion on saving water to employees. The water saving efficiency was improved by the change of water consumption behaviors. The amount of water intake for all plants did not cause material impact on local water sources. The water intake sources and the total water consumption/waste water amount of all plants are shown in the following table:

As for the monitoring of water resources, required tests (wastewater temperature, pH value, SS, BOD, and COD) are carried out by accredited institutions by commission of the company on an annual basis to ensure that the discharged water meets relevant effluent standards and prevent impacts on the environmental ecology. The monitoring value of water emission for all plants of Everlight in 2017 was within the legitimate emission standard.

Water Saving Measures and Water Recycle Rate

In response to water shortage and climate changes, Everlight continues to promote water saving measures with every effort. In addition to improving facilities and equipment, the company also encourages employees to change the water consumption behaviors to improve water saving efficiency. Our water saving measures in 2017 were estimated to save about a total of 5,557 metric tons in water resources.

Pollution Prevention

For the pursuit of sustainable operation, the company improves production process and recycle resources to reduce costs and pollution in order to achieve the win-win goal of reducing environmental pollution and effective utilization of resources. Plants focus on the environmental protection awareness. The main principle of supply chain management is to recycle or reuse resources that may be recycled or reused, and wastes are disposed based on their natures. Vendors handling waste disposal are qualified vendors, and the company conduct irregular audit on vendors handling waste disposal in order to enhance monitor and management on vendors. In 2017, the total waste amount for all plants of Everlight was 1,864 tons, an increase of 20.5% compared to 2016.