ESG Sustainability Management

Implementation outcomes for 2025

Corporate Governance Aspect

Topic	2025 Goals	2025 Implementation Status
Government Sustainable Development Action Plan	Ranked in the top 6–20% in the Corporate Governance Evaluation. Ensure that all directors complete the number of training hours required by law. The Sustainability Report disclosed ESG information in accordance with the SASB Standards and was updated to comply with the 2021 version of the GRI Standards. Establish a cross-departmental task force for sustainability disclosure standards, formulate a standards implementation plan, and establish internal controls for identifying sustainability-related risks and opportunities. Ensure that at least half of the independent directors on the 13th Board of Directors have not served more than three consecutive terms, and increase female representation on the Board. Engage external experts to conduct a Board performance evaluation.	CSCC scored 101.29 in the 11th Corporate Governance Evaluation, remaining in the 6% to 20% range among all listed companies (average score for the range: 99.92). Relevant continuing education course information was promptly provided to each director, and directors achieved 118% of the required continuing education hours for the year. Completed the public announcement and filing with the Taiwan Stock Exchange on August 28. Established the Sustainability Disclosure Standards Task Force, consulted with a professional advisory firm, and developed the implementation schedule. The IFRS Sustainability Disclosure Standards implementation plan was reported to the Board of Directors on December 23. The Annual Shareholders' Meeting completed the election of the 13th Board of Directors on June 17, including two newly elected female independent directors. None of the three independent directors had served more than three consecutive terms, and female directors accounted for one-third of Board seats. Commissioned the Taipei Foundation of Finance to conduct an external Board performance evaluation, obtained the evaluation report, and reported the results to the Remuneration Committee and the Board of Directors on February 24.
Intellectual property management	Maintained TIPS Grade A certification for intellectual property certifications (including patents and trade secrets). Conduct a three-hour intellectual property training course among TIPS-implementing departments in accordance with TIPS regulations and achieve a 100% training penetration rate. The Company has a total of two certified intellectual property auditors.	Completed the internal audit and management review meeting in accordance with the annual plan. Completed a three-hour intellectual property training course among TIPS-implementing departments on November 21. Two employees obtained TIPS self-assessor certificates valid through December 31, 2026. Training for two additional employees is planned for 2026, bringing the total number of certificate holders to four.
Information security maintenance and management	Achieve zero significant information security incident. Perform website vulnerability scanning (EIP). Conduct intranet penetration tests (official website and shipping schedule). Conduct two social engineering drills. ISO 27001:2022 updated certification Complete implementation of the new ERP system by the end of May.	No major information security incidents occurred during the year. All vulnerabilities identified during the initial and follow-up EIP vulnerability scans were remediated. Initial and follow-up penetration tests of the official website and shipment scheduling system were completed, and all identified vulnerabilities were remediated. The first social engineering drill was completed in May, and the follow-up test was completed in the fourth quarter. Completed and passed certification to the 2022 version by the end of April. Since the launch on August 1, all modules have operated normally and system response times have met requirements. System permissions were configured based on each department's business needs, with no risk of unauthorized access identified. System backup operations were also fully established.
Legal compliance	0 major violation of laws and regulations. Real-time identification of laws and regulations ≧ 90%. Employees who have attended one-hour legal compliance training ≧ 80% (insider trading prevention and integrity management).	No major violations of laws or regulations occurred during the year. Compiled monthly domestic regulation amendment information for each unit's reference. Each unit discussed whether to amend the relevant regulations, and with regulation identification amounted to 100%. Completed training on insider trading prevention and ethical corporate management on December 5.
Promote a paperless office	Digitize paper application forms by developing ≧ five EIP electronic application forms. Continue designing paperless processes for expense reimbursement and payment operations, and plan the related software and hardware infrastructure accordingly.	Five application forms were digitized and moved online during the year. Following the launch of the new ERP system in the third quarter, additions and changes to vendor bank accounts for expense reimbursement were processed through electronic approval. The reimbursement functions in the new system are currently operating normally. Going forward, the Company will discuss and plan with relevant units to promote paperless processing for certain reimbursement and payment operations.

Society

Topic	2025 Goals	2025 Implementation Status
Collective Bargaining and Agreement	Conduct collective bargaining negotiations with the labor union.	The 12th through 15th collective bargaining sessions were held on January 16, March 24, May 8, and July 24. A total of 77 articles were discussed, with tentative consensus reached on 75 articles, representing 97% progress.
Talent development program	Plant Management Course Training: Low-level management training completion rate is 90%. Implementation of employee training programs with an average duration of 32 hours.	Four training sessions were held on February 26, March 14, March 21, and March 28, with a 100% completion rate. Four all-employee consensus workshops were also held on July 11, July 25, August 8, and August 22. Average employee training hours for the year were 38.7 hours per person.
Healthy workplace certification and health promotion among employees and contractors	Organize at least two health promotion activities each year. Organize at least 12 consultation sessions provided by occupational medicine specialists in the factory area each year. Engage external experts to conduct at least 3 health education activities.	A total of 163 employees and contractors participated in the annual weight-loss competition, losing a combined 362.3 kg. Twelve participants reduced their body fat by more than 5%. Two oral cancer screening events were also held, with 133 participants in total, including contractors. A total of 16 on-site occupational physician consultations were conducted during the year. During the year, the Company conducted five emergency trauma care sessions, seven CPR and AED first-aid training sessions, two physical therapy sessions on superficial taping techniques, one ergonomics session on musculoskeletal injury prevention, and one suicide prevention session, with 335 attendances in total.
Supplier Management	Continuously incorporate ESG supplier due diligence issues, environmental issues, labor conditions, human rights issues, non-use of conflict minerals, and supplier code of social conduct as new supplier evaluation items. Conduct visits to at least three suppliers in accordance with the Supplier Due Diligence Guidelines. Achieve zero major workplace safety incident among transportation providers. Proportion of locally procured materials > 65%.	The response rate for the Supplier Code of Conduct among newly evaluated suppliers reached 100% during the year. A total of five supplier visits were conducted during the year. No major occupational safety incidents involving transportation suppliers occurred during the year. Four ride-along inspections of transportation suppliers were conducted, with no irregularities or violations identified. The local procurement ratio for materials was 74.90% during the year.
Workplace safety management and fire prevention	No major occupational accident. Zero major fire incidents. Total number of employees and contractors suffering disabling injuries per year ≦ 2.	No major occupational accidents occurred during the year. No major fire incident occurred during the year. No employees suffered disabling injuries during the year.
Social welfare and community engagement	Promote at least two art and cultural activities per year in collaboration with CSCC Group. Adopt rural elementary schools, sponsor summer camp activities organized by local elementary schools, and sponsor environmental education activities organized by the CSCC Group Education Foundation. Carry out at least two sustainable environment awareness activities and fraternal activities with societies and associations in local neighborhoods each month.	Sponsored the General Association of Chinese Culture's "We Are 2025: Our New Year's Eve" event, the Kaohsiung Philharmonic Cultural and Arts Foundation's "2025 Kaohsiung Lantern Festival," the Eden Social Welfare Foundation's "2025 Happy Children's Festival," the 2025 Pingtung Marathon, the 2025 CSC Fun with Amazing Ideas Summer Camp, and the CSC Choir's "Singing Youth" concert. Continued to support the Jin-Jhu Elementary School with annual funding for transportation, talent classes, and after-school care programs, and conducted monthly moral education courses; sponsored various steel and environmental education activities organized by the China Steel Group Education Foundation; sponsored the CSC Fun with Amazing Ideas Summer Camp; and maintained sponsorship for air quality maintenance and greening at Siaogang District Qingshan Elementary School. Hold an average of 5 local neighborhood group activities, community associations, and environmental promotion activities each month.

Environment

Topic	2025 Goals	2025 Implementation Status
Energy Management	Cumulative average annual electricity savings rate from 2015 to 2025 > 1.05%.	The company-wide average electricity savings rate in 2025 was 1.73%.
Water resource management	Water intensity (water consumption/coal tar processing volume) has decreased by an average of 1.5% cumulatively (Xiaogang Plant). Water intensity (water consumption/unit weighted output) has decreased by an average of 1.2% cumulatively (Pingnan Plant). (Xiaogang plant benchmark: 0.4830, Pingnan plant benchmark: 20.65) The cumulative average decrease in wastewater intensity (wastewater concentration/coal tar treatment volume) was 1.5% (Xiaogang Plant). Wastewater intensity (water consumption/unit weighted output) decreased by an average of 1.2% cumulatively (Pingnan Plant). (The benchmark point for Xiaogang plant is 0.1375, and for Pingnan plant it is 5.14.)	The water intensity of the Xiaogang plant in 2025 is 0.276. The water intensity of the Pingnan plant in 2025 is 24.92. The wastewater intensity of the Xiaogang plant in 2025 is 0.088. The wastewater intensity of the Pingnan plant in 2025 is 8.9.
Air pollution reduction and management	Switch to clean fuels to reduce sulfur oxide (SOx) emissions to less than 5 tons per year. Switch to low-NOx burners to reduce nitrogen oxide (NOx) emissions to less than 25 tons per year.	2025 Total SOx emissions amounted to 0.059 metric tons. 2025 Total NOx emissions amounted to 12.351 metric tons.
Resource recovery from waste	Increase bulk bag recycling rate to 75%. Increase pallet recycling rate to 75%.	In 2025, the recycling and reuse rate for flexible intermediate bulk containers reached 96.4%. A total of 2,742 containers were recycled and reused, reducing carbon emissions by 3,208 kg. In 2025, the pallet recycling and reuse rate reached 95.2%. A total of 3,307 pallets were recycled and reused, reducing carbon emissions by 13,625 kg. An additional 90 pallets were sold to external plants.
Climate change and carbon neutrality	Reduce greenhouse gas emissions by 2% annually, based on the 2022 base year for Category 1 and Category 2 carbon emissions. Greenhouse gas emissions have been inventoried in accordance with the ISO 14064-1:2018 standard. Provided guidance to Changzhou China Steel for completing the greenhouse gas inventory and verification.	The coal chemical production plant completed 17 energy-saving projects, and the carbon materials production plant completed 8 energy-saving projects, reducing carbon emissions by a total of 1,820 tons. Completed the self-conducted greenhouse gas inventory for 2024 and obtained the verification statement on September 5. Company-wide Category 1 emissions were 23,895 metric tons of CO₂e and Category 2 emissions were 73,529 metric tons of CO₂e, totaling 97,424 metric tons of CO₂e. Changzhou China Steel completed third-party verification of its 2024 greenhouse gas inventory. Category 1 emissions were 13.49 metric tons of CO₂e and Category 2 emissions were 169.97 metric tons of CO₂e, totaling 183.46 metric tons of CO₂e.
Environmental Education	Organize at least two social welfare activities per year such as beach cleanup, mountain cleanup, and tree planting.	A total of eight environmental education activities were held in 2025.

Note: Weighted average output per unit of water consumption at the Pingnan plant: (Graphitization feed rate + ACS output * 18 + Graphite electrode manufacturing output + CIP block output + Block graphitization quantity)
Weighted average output per unit of wastewater consumption at the Pingnan plant: (Graphitization feed rate + ACS output * 18 + Graphite electrode manufacturing output + CIP block output + Block graphitization quantity + Finished product screening output * 0.6 + Compounding unit output * 0.6)