環境保護

▌ Safety, Health, and Environmental Management Policy

YIEH HSING established in July 1978, is one of the professional manufacturing plants in the world with the most available sizes and steel types in rods. With its philosophy of management of "Innovation, growth, responsibility, and sustainability", it truly realizes that people are the most valuable resource for a corporate and must not be harmed. The earth is the only living environment shared by human, and we should pursue sustainable development that would last for generations. Therefore, we actively promote occupational safety and health management and continue to improve manufacturing process and operation environment, also make sure pollution prevention equipment is working properly. Our goals are zero disaster and zero pollution. By the co-efforts of all employees, we are committed to improve the occupational safety and health performance to prevent occupational hazard and environmental pollution, while keep the employee safe and healthy and strengthen environment protection. In order to implement Safety, Health, and Environmental Management Policy, a safety, health, and environmental declaration is made "full participation, continuous improvement, safety first, zero disaster, energy saving and waste reducing, and environment caring", as well as committed to the following actions:

Get everyone involved in the concept of safety, health and environmental protection with systematized proposal, secured equipment, standardized operation, physical and psychological well-being, environmental and energy saving, and minimized recycling.
Implement risk management, enhance overall risk control, eliminate potential hazard, and minimize occupational safety risk.
Conduct training, propaganda, and convey message on safety, health and environmental protection policy for employee, customer, contractor, supplier, and carrier to promote cognition on safety, health and environmental protection awareness.
Fully implement safety, health and environmental protection management system, promoting continuous improvement and pollution prevention to enhance safety, health and environmental protection performance.
Comply specific commitments of segment, the laws and regulations and obligations, enhance correction and prevention, and implement sustainable development.

The company promote greenhouse gas emission reduction and environmental protection activity based on this policy to prevent climate changes and environmental pollution.

▌ Environmental Management System (ISO 14001)

Since 2017, Yieh Hsing has implemented the ISO 14001 Environmental Management System and integrated it with safety and health management systems in line with international trends. The Company has established a comprehensive safety, health, and environmental management policy, addressing environmental management policies, environmental impacts, and legal compliance systematically. By prioritizing management areas through a structured process, Yieh Hsing has developed and improved management procedures and projects to reduce environmental impact and enhance corporate environmental performance. Thanks to the efforts of all employees, Yieh Hsing passed the ISO 14001:2015 international standard certification in January 2018, and successfully completed recertification in January 2021 and January 2024, continuing its progress towards becoming a green enterprise and ensuring sustainable development.

▌ Occupational Health and Safety Management System (ISO 45001)

Yieh Hsing received the “Safety and Health Model Award” on October 24, 2011 from the Industrial Development Bureau, MOEA; both OHSAS 18001 and Taiwan Occupational Safety and Health Management Systems (TOSHMS) certifications were awarded in January 2012. In November 2019, the Company's pickling plant received the Excellence Award from the occupational safety performance evaluation by the Taiwan Steel & Iron Industries Association. In 2020, the management system was upgraded, Yieh Hsing, in its ongoing implementation of the Occupational Safety and Health Management System, has established the "Occupational Safety and Health Committee" to promote continuous improvement in workplace safety and health performance in compliance with legal requirements. This committee is responsible for reviewing and coordinating matters related to occupational safety and health, ensuring the protection of employees' rights in this area. The committee is composed of both employer and employee representatives, with 14 from the employer side and 10 from the employee side, totaling 24 members. Employee representatives make up more than one-third of the committee, meeting legal requirements. The total number of workers in the entire plant is approximately 446, with around 38 workers from contractors.

▌ ENERGY MANAGEMENT SYSTEMS (ISO 50001)

ISO 50001 Energy Management Systems was introduced, established, and given ISO 50001 certificates in 2019. We look forward to reaching the goal of energy saving, cost reducing, and protect environment targets.

▌ Climate Change Risks and Opportunities

Yieh Hsing, in accordance with the Financial Supervisory Commission's announced "Corporate Governance 3.0 -Sustainable Development Roadmap" requirements and regulations, has introduced the Task Force on Climate-related Financial Disclosures (TCFD). This disclosure covers the financial or operational impacts of various climate change factors on the Company while establishing a management model for various risks and opportunities related to climate change.

The Company follows TCFD guidelines and uses the four core elements of "Governance," "Strategy," "Risk Management," and "Metrics and Targets" as its reporting framework to identify significant risks and opportunities that may impact operations. It also promotes various climate change mitigation and adaptation measures to continuously reduce climate risks and enhance and create sustainable development.

Governance	strategy	Risk Management	Indicator and Goal
Established the "Sustainable Development Committee," responsible for formulating corporate sustainability strategies and visions to promote ESG-related work and management. Regularly report to the Board of Directors on the implementation of corporate social responsibility related to climate change issues. The "Sustainable Development Committee" oversees significant climate-related risks and guides the management strategies, major action plans, and target achievements.	Introduce a climate-related financial disclosure assessment model, referencing at least two climate change scenarios such as IEA APS, RCP 8.5, and RCP 1.9, to complete the identification of climate-related risks and opportunities.	Through the risk management process of the Company's "Risk Management Policies and Procedures," each division has identified 12 climate-related risks and 6 climate-related opportunities that have significant impacts on operations. After comprehensively considering the impact of relevant risks and opportunities on operations, products and services, employee safety, and corporate reputation, and evaluating the likelihood of occurrence through cross-analysis, the focus is on climate-related risks and opportunities.	Indicator: Establish the ISO 5001 Energy Management System. Increase the utilization rate of renewable energy sources. Promote energy-saving, carbon reduction, and water conservation policies. Conduct a Greenhouse Gas Inventory in accordance with ISO 14064-1: Greenhouse gases Part 1: Specification with guidance and engage a third-party verification body to verify the results and obtain a verification statement. Enhance hazard prevention equipment in various plants and office buildings. Optimization of process capabilities. Objective: Water stewardship: Reduce water usage by 5% in 2025 compared to the 2020 base year. Energy saving and carbon reduction: A 15% reduction in carbon emissions by 2025 compared to the 2018 base year. Reach 8% installed capacity of renewable energy generation.

Governance

strategy

Risk Management

Indicator and Goal

Established the "Sustainable Development Committee," responsible for formulating corporate sustainability strategies and visions to promote ESG-related work and management.
Regularly report to the Board of Directors on the implementation of corporate social responsibility related to climate change issues.
The "Sustainable Development Committee" oversees significant climate-related risks and guides the management strategies, major action plans, and target achievements.

Introduce a climate-related financial disclosure assessment model, referencing at least two climate change scenarios such as IEA APS, RCP 8.5, and RCP 1.9, to complete the identification of climate-related risks and opportunities.

Through the risk management process of the Company's "Risk Management Policies and Procedures," each division has identified 12 climate-related risks and 6 climate-related opportunities that have significant impacts on operations.
After comprehensively considering the impact of relevant risks and opportunities on operations, products and services, employee safety, and corporate reputation, and evaluating the likelihood of occurrence through cross-analysis, the focus is on climate-related risks and opportunities.

Indicator:

Establish the ISO 5001 Energy Management System.
Increase the utilization rate of renewable energy sources.
Promote energy-saving, carbon reduction, and water conservation policies.
Conduct a Greenhouse Gas Inventory in accordance with ISO 14064-1: Greenhouse gases Part 1: Specification with guidance and engage a third-party verification body to verify the results and obtain a verification statement.
Enhance hazard prevention equipment in various plants and office buildings.
Optimization of process capabilities.

Objective:

Water stewardship: Reduce water usage by 5% in 2025 compared to the 2020 base year.
Energy saving and carbon reduction: A 15% reduction in carbon emissions by 2025 compared to the 2018 base year.
Reach 8% installed capacity of renewable energy generation.

▌ Climate Change Related Risks and Opportunities Management

Based on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), set different climate scenarios, and collect Taiwan's climate change trends. In conjunction with the relevant trends in the domestic and international steel industry, analyze and assess the issues of concern to various stakeholders to identify climate-related risks and opportunities. The Company will subsequently evaluate and analyze the likelihood and impact of identified risks and opportunities. Based on their materiality assessment, the Company will formulate strategies and response measures to climate change.

The main climate risks identified in 2023 are "Greenhouse Gas (GHG) and carbon emissions issues," "renewable energy," "unstable power supply," and "typhoons/heavy rain." The main climate opportunities are "using energy-saving equipment," "using low-carbon fuels," and "continuously investing in renewable energy sources." The following addresses the financial implications, risk descriptions, risk response measures, and costs for each risk.

	Transition risk		Physical Risk
1	Cap on greenhouse gas/Carbon Emission Trading	8	Unstable power supply
2	Carbon Tax/Carbon Fees	9	Typhoon/Heavy rain
3	Cost increase of raw materials	10	Drought/Water shortage
4	Investment in new technology	11	Temperature increase
5	Changes in customer behavior or demand for low-carbon products	12	Rising sea levels
6	Increase in transportation costs
7	Use renewable energy sources (green electricity)

▌ Climate Change Related Risks and Responses Risk Risk description Scenario simulation Scenario explanation

Risk	Risk description	Scenario Simulation	Scenario Explanation	Impact Period	Financial Impact	Response Measures
Transition Risk	Cap on greenhouse gas/Carbon Emission Trading	IEA APS	The Cap on greenhouse gases has been challenged by the authorities, and order intake has been limited.	Short-term (1-3 years)	DDecreased Revenue Expenditure Increase	Regularly evaluate and track significant energy performance using ISO 50001. Strengthen management and increase operational resilience. Continuously optimizing process capabilities.
	Carbon Tax/Carbon Fees	IEA APS	Due to CBAM, CCA, and government-imposed Carbon Tax/Carbon Fees regulations, trade costs have increased.	Short-term (1-3 years)	Expenditure Increase	Increase investment for Greenhouse Gas (GHG) emission reduction, lessening the impact of future policy regulations on the Company. Increase the proportion of low-carbon materials.
	Renewable energy(green electricity)	IEA APS	Large electricity consumers who install renewable energy sources or purchase green electricity according to the law are exempt from paying compensation fees.	Medium-term (5-10 years)	Expenditure Increase	Install solar power generation or waste heat reclaimed power generation equipment. Promote power-saving plans.
Physical Risk	Unstable power supply	1 day of complete power outage	Taipower may face risks of voltage drops and power outages due to insufficient reserve capacity.	Medium-term (5-10 years)	Decreased Revenue	Expand in-house renewable energy source equipment or energy storage facilities. Equip important equipment with UPS systems to reduce voltage drop risks.
Physical Risk	Typhoon/Heavy rain	RCP 8.5	Heavy rainfall probability has increased, and the drainage facilities are unable to cope, resulting in flooding in the plant area.	Medium-term (5-10 years)	Decreased Revenue	Install flood control pumps and conduct regular inspections and maintenance to reduce the incidence of flooding. Regular cleaning of ditches and sewage dredging operations.

▌ Climate Change-Related Opportunity Matrix Diagram

	Risk type		Risk type		Risk type
1	Use of low-carbon fuels	3	Continued investment in renewable energy sources	5	Implementing water circularity measures
2	Use energy-efficient equipment	4	Enter new markets	6	Replacement of old equipment with new equipment

▌ Opportunities and measures related to climate change

Category	Opportunity Description	Impact period	Financial Impact	Response measures
Opportunity	Energy conservation Equipment	Short-term (1-3 years)	Cost decrease Revenue increase	Continue to promote and procure energy-saving equipment such as variable frequency systems and high-efficiency motor/pump replacements. Regularly evaluate and track significant energy performance using ISO 50001.
	Continued investment Renewable energy sources	Medium-term (5-10 years)	Revenue increase	Independently establish renewable energy generation capacity (such as solar power, waste heat power generation, etc.), reduce product carbon footprint, and enhance product competitiveness.
	Using low carbon Fuel	Long-term (10 years)	Cost decrease Revenue increase	Using low-carbon liquefied petroleum gas to reduce the product's carbon footprint. Development of hydrogen/ammonia co-combustion fuel use.

▌ GHG emissions

In response to global climate change and in alignment with national long-term greenhouse gas reduction targets, Yieh Hsing has been conducting internal greenhouse gas inventories since 2006. To accurately monitor greenhouse gas emissions, the Company follows a systematic process that includes identifying emission sources, establishing activity intensity data, and gathering emission data, all of which are used to calculate the total greenhouse gas emissions. The Company's greenhouse gas emissions are categorized into Direct Emissions from Fixed Combustion Sources (Scope 1) and Indirect Emissions from Purchased Electricity (Scope 2) supplied by Taiwan Power Company. The following chart illustrates the historical data of greenhouse gas inventories for the past years:

Gangshan Plant GHG Emissions (MT CO₂-e/year)

Pingnan Plant GHG Emissions (MT CO₂-e/year)

Gangshan, Pingnan Plant GHG emissions and emissions intensity (MT CO₂-e/year)

Note:

Scope 1 is direct energy and scope 2 is indirect energy. The source of greenhouse gas emission is CO₂。
Emission unit: metric ton CO₂-e/year
Method for aggregating greenhouse gas amounts: operational control method.
The source of emission factors cited in 2021~2022 refers to the Ministry of Economic Affairs Industrial Development Bureau's greenhouse gas inventory tool, and in 2023 refers to the Greenhouse Gas Emission Factor Management Table version 6.0.4 (AR6).

Yieh Hsing, in compliance with the Financial Supervisory Commission (FSC) regulations, has completed the disclosure of the previous year's greenhouse gas inventory assurance information starting from 2024. According to the assurance results, Yieh Hsing's total GHG emissions in 2023 amounted to 36,160 metric tons of CO2e, a reduction of 34,577 metric tons of CO2e compared to 2022. The Company ensures the accuracy and reliability of GHG emissions inventory through assurance to review the reduction status and iteratively revise management policies.

▌ Carbon Reduction Net Zero Path Planning

▌ Air Pollution Control

The Company adheres to domestic environmental regulations, including the Air Pollution Control Act and related implementation rules. All facilities have obtained the necessary operational permits for their processes and equipment. In compliance with air pollution control regulations, the Company conducts testing and reporting of fixed pollution source emissions. All air pollutants are properly treated before being discharged, minimizing their impact on the natural environment.

In order to reduce the emissions of various air pollutants, the fuel used in each production line is natural gas (NG), a cleaner fuel with less environmental impact. The Gangshan Plant's wire pickling production line is equipped with Selective Catalytic Reduction (SCR) equipment to treat the pickling exhaust gas and reduce nitrogen oxide emissions, thereby reducing the impact of air pollutants on the natural environment. The total air pollution emissions in 2023 were 13.32 tons, a reduction of 5.08 tons compared to 2022. Yieh Hsing's emissions of air pollutants include nitrogen oxides, sulfur oxides, particulate matter, and volatile organic compounds. The proportions of each type of air pollutant emissions from the Company from 2021 to 2023 are shown in the chart below:

(MT/year)

▌ Green Environment

To beautify the factory environment, enhance overall environmental quality, and achieve mitigation of global warming effects in line with the Company's green environmental protection goals, the Company has commissioned professional landscaping companies to plan wall paintings and plant ixora, croton, and juniper trees. This will create a lush, green, and beautiful environment while purifying the air quality of the factory area.

▌ Introduction of International Standards Management Systems

14001 Environmental Management System
In line with the government's energy-saving and carbon reduction policies, Yieh Hsing has implemented green manufacturing processes and introduced the ISO 14001 Environmental Management System. Internal and external audits are conducted annually to maintain ISO 14001 Environmental Management System certification. The aim is to enhance environmental performance, save energy, and protect the natural environment.
ISO 50001 Energy Management System
Effective energy management is beneficial for businesses and has gradually become an international standard. The Pingnan Plant was also certified with ISO 50001 in 2019, aiming to achieve energy conservation, cost reduction, and compliance with environmental regulations.

▌ Energy Usage Amount

Yieh Hsing 2023 Annual Energy Consumption Statistics

Type of energy	Gangshan Plant	Pingnan Plant	Total	Ratio
Natural gas (NG) (GJ)	299,332	11,584	310,916	67.97%
Electricity (GJ)	134,542	11,984	146,526	32.03%

▌ Gangshan Plant

In 2023, electricity consumption was approximately 37,372,800 kWh, and natural gas usage was around 7,370,900 cubic meters. After conversion, the total energy consumption amounted to 433,874 GJ. Due to the challenging market conditions in the steel industry and relatively lower production capacity, energy usage decreased by about 1.7% compared to 2022.

Note 1:Heating value, Taiwan: 1 kWh = 3.6 MJ
Note 2:Natural gas heating value, Taiwan: 1 m3 = 40.61 MJ
Note 3: 1 MJ=10^-3 GJ

▌ Pingnan Plant

Electricity consumption in 2023 was 3,328,800 kWh, and natural gas (NG) consumption was 285,259 cubic meters. After conversion, the total energy usage was 23,568 GJ. Due to the replacement of old equipment at the Pingnan Plant in 2023, the plant only produced for two months, resulting in a reduction in energy consumption by about 90.4% compared to 2022.

Note 1:Heating value, Taiwan: 1 kWh = 3.6 MJ
Note 2:Low sulfur fuel oil heating value, Taiwan: 1 liter =41.42 MJ
Note 3:Natural gas heating value, Taiwan: 1 m3 = 40.61 MJ
Note 4:1 MJ=10^-3 GJ

▌ Energy Intensity

Revenue for 2023 was 5,015.1 million, and the calculated energy intensity was 91.21 gigajoules/million. Due to the challenging market conditions in the steel industry and relatively lower production capacity, the energy efficiency in 2023 increased by 17.43% compared to 2022.

註:
　1：Energy intensity = Total consumption (terajoules) / Revenue (million)
　2：Energy intensity is inversely proportional to energy usage rate

▌ Energy Conservation Promotion Performance and Short-, Medium-, and Long-term Energy Plans

Energy Performance Promotion

In 2023, the Gangshan Plant implemented six energy-saving projects with a total investment of NT$2,546,320. These projects resulted in electricity savings of 1,043,043 kWh and a total energy savings of 3,755 GJ. In 2023, the Pingnan Plant continued improvements from 2022 with notable energy-saving projects. The "ST2-ST3 Rolling Mill Scale Blowing Improvement" optimized the timing of scale blowing using electric control techniques, saving 44,844 kWh of electricity. Additionally, the "Reheating Furnace Chimney Fan Motor Improvement" involved upgrading to variable frequency control, resulting in 83,263 kWh of electricity savings. Overall, these initiatives led to a total electricity savings of 128,107 kWh and an energy savings of 461.2 GJ for the Pingnan Plant.

Yieh Hsing 2023 Annual Energy Saving Initiatives and Performance

NO.	Energy Saving Measures	Electricity Savings (kWh)	Carbon Reduction(metric tons CO₂e/year)
Gangshan Plant	Changed the Stelmor fan in the steel rolling plant's air cooling area to variable frequency control	192,634	95
	Replaced the lighting in Building A of the rolling mill with LED fixtures	82,563	41
	Variable frequency control of water temperature monitoring for Cooling Tower CT-2 in the rolling mill	248,367	123
	Replaced lighting in the acid factory with LED fixtures	451,359	223
	Installed frequency converter for blower in acid gas scrubber of acid recovery plant	51,860	26
	Improved acid plant cooling circulation water pump	16,261	8
Pingnan Plant	Improved Steel Billet scale blowing between Stands St2 and St3	44,845	22
Pingnan Plant	Improved heating furnace chimney fan motor	83,262	41
Total		1,171,151	579.72

From 2015 to 2023, the average annual electricity savings rates at the Gangshan Plant and Pingnan Plant were 1.31% and 1.37%, respectively. Both rates meet the requirements of Article 5 of the "Regulations for Energy Users to Set Energy Conservation Targets and Implementation Plans," which stipulates that energy users in Taiwan must achieve an average annual electricity savings rate of at least 1% from 2015 to 2024.

Yieh Hsing 2023 Annual Electricity Savings Status

Plant Area	2023 Annual Power Saving Rate	2023 Annual Power Saving Rate	2015-2023 Average Annual Energy Saving Rate	Electricity Saving/GJ
Gangshan Plant	2.80%	2.72%	1.31%	1,043,043.8/3,775
Pingnan Plant	2.80%	3.71%	1.37%	128,107.1/461.2

Short, medium, and long-term energy plans

Yieh Hsing aims to enhance Energy usage efficiency and production efficiency through continuous upgrades and additions of equipment. By implementing a comprehensive management system, the goal of "improving environmental performance, energy saving, and preserving the natural environment" can be achieved. The following are the short, medium, and long-term energy plans for Yieh Hsing's Gangshan Plant and Pingnan Plant:

Gangshan Plant Short, Medium, and Long-term Energy Plan

Short-term	Medium-term	Long-term
Change the cooling water towers at the water treatment plant from direct control to variable frequency control to reduce electricity consumption. Spray heat-retaining coating inside the heating furnace to increase gas usage efficiency.	Change the airflow in the air-cooled zone from direct control to variable frequency control to save electricity. Modify the production line equipment operation speed and increase the equipment to reduce natural gas(NG) idle burning time, thereby saving energy. Slow down the cooling rate of wire rods, allowing the heating furnace to be set to a lower temperature, saving natural gas.	Replace the furnace burners from recuperative to regenerative to reduce unit energy consumption. Increase the number of burner positions inside the furnace, reduce heating time, increase production capacity, and lower unit energy usage. Convert other fixed-frequency air compressors in the factory to variable-frequency control to save energy. Establish a solar power system and integrate it into the internal network for electricity use.

Pingnan Plant Short, Medium, and Long-Term Energy Plan

Short-term	Medium-term	Long-term
Upgrade and add new utility system equipment to reduce the energy consumption of utility systems. Upgrade and expand production line equipment to increase unit output, thereby reducing energy consumption per unit.	Fulfill the corporate responsibility of major energy users in using green energy, and establish a solar power generation system to integrate into the internal network for use.	In line with government policy, execute a 1.1% electricity savings for large power consumers, fulfilling corporate responsibility. Use low-pollution fuels to reduce air pollution emissions with the goal of achieving net zero emissions.

▌ Water Stewardship

The water resources used by Yieh Hsing are entirely sourced from tap water supplied by the Taiwan Water Corporation, with no extraction of groundwater to cause negative environmental impacts. The water stewardship standards comply with the national regulations for tap water sources. Below is a chart of total water withdrawal, water consumption, and water consumption intensity from 2021 to 2023 (Note 1).

Note: Water consumption intensity = Total water consumption/Revenue (in million NT dollars)

Risk Assessment of Major Water Resource Sources

Since 2000, the frequency and duration of droughts worldwide have increased by 29%. Scientists estimate that by 2030, the global water shortage could reach 40%, potentially displacing 700 million people due to severe water scarcity. By 2050, droughts are expected to affect over three-quarters of the global population. The water shortages triggering water wars may lead to political instability, food shortages, and economic recession. As rainfall in central and southern Taiwan continues to decrease each year while water consumption across the country rises annually, it is increasingly important to implement effective water conservation measures as soon as possible.

Plant Area	River Basin	Physical Risk	Water Shortage	Groundwater Level Decline	Drought Risk	River Flooding Risk Pressure	Coastal Flood Risk
Gangshan	Dianbao Creek	Mid-High (2-3)	High（40~80%）	Insignificant Trend	Medium-High	Low - Medium	Low - Medium
Pingnan	Shuimang Creek	Mid-High (2-3)	High（40~80%）	Insignificant Trend	Medium-High	Low - Medium	Low - Medium

Note: The Plant is evaluated by WRI as having high water shortage risk. The overall water usage in the area is less than 5%, with no significant impact on water sources, suppliers, or stakeholders. However, it is necessary to respond to the water shortage risk in the south as soon as possible.

Wastewater Emissions Management

In 2023, Yieh Hsing's total wastewater discharge was 35.84 million liters (35.04 million liters from the Gangshan Plant and 0.80 million liters from the Pingnan Plant), representing a 37.23% decrease compared to 2022. This significant reduction was primarily due to the poor market conditions in the steel industry, leading to lower production capacity, and the Pingnan Plant's equipment upgrades in 2023, resulting in only two months of production and consequently a substantial decrease in total wastewater discharge.

The wastewater from the acid pickling production line at the Gangshan Plant is discharged into the Dianbao Creek. This wastewater is fully discharged and not reused by other organizations. The wastewater treatment facility processes the toxic and hazardous substances generated during the acid pickling process, including NO₂^-, Cr⁶⁺ (from salt bath quenching), sulfuric acid, nitric acid, and hydrofluoric acid. The treatment involves chemical and physical (mechanical) methods such as oxidation, reduction, neutralization, coagulation, flocculation, sedimentation, pressing, dewatering, and sand filtration to ensure compliance with environmental standards. Below is the total water discharge chart and discharge control standards table for wastewater from 2021 to 2023.

Table of Effluent Standards
Item	pH value	Water Temperature (°C)		Chemical Oxygen Demand (mg/l)	Suspended Solids (mg/l)
Control Value	6~9	(May - September)38°C　(October - April)35°C		100 mg/l	30 mg/l
Item	Oil and Grease	Soluble Iron	Soluble Manganese	Anionic Surfactants
Control Value	10 mg/l	10 mg/l	10 mg/l	10 mg/l
Item	Fluorides	Cyanide	Hexavalent Chromium	Chromium	Lead
Control Value	15 mg/l	1.0 mg/l	0.5 mg/l	0.02 mg/l	0.5 mg/l
Item	Copper	Nickel	Total Chromium	Total Mercury	Arsenic
Control Value	1.5 mg/l	0.7 mg/l	1.5 mg/l	0.005 mg/l	0.35 mg/l
Item	Nitrate Nitrogen	Molybdenum	Boron	Ammonia Nitrogen	Zinc
Control Value	50 mg/l	0.6 mg/l	12 mg/l	150 mg/l	3.5 mg/l
Item	Phenols	Selenium	Silver	Sulfur Compounds	Lead
Control Value	1 mg/l	0.5 mg/l	1 mg/l	1 mg/l	0.5 mg/l

Water Resource Reduction

To ensure the effective use of water resources, Yieh Hsing implements measures such as reducing water use at the source, improving equipment, recycling process water, and minimizing end-of-pipe wastewater discharge to gradually decrease water consumption. To address potential water scarcity risks due to climate change, the Company has adopted the following water-saving measures and set water reduction targets:

Reduction Targets

2023 Goal

Achievement Status

2024 Goal

Water consumption of new water per ton of product ≤1.95

In 2023, the amount of new water consumed per ton of product was approximately 1.39.

Water consumption of new water per ton of product≤1.84

Promotion Measures

The water resources for the rolling line are 100% reclaimed and reused.
The acid regeneration plant continues to optimize process parameters, such as introducing one-time process parameters, reducing the reacidification rate, and increasing unit output.
Since 2021, the acid pickling plant has not only optimized process parameters but also focused on operational improvements, such as adjusting pulley operations, installing mechanical turning tables, and adding ultrasonic devices. The implementation of a new sandblasting machine in January 2023 further reduced water consumption in the pickling process.

Implementation Results

Since the rolling line does not produce wastewater and its water consumption is primarily due to evaporation and splashing losses, which are challenging to control, the performance metrics focus on the new water usage in the acid pickling plant's processes.

The Company's annual goal is to reduce water usage by 5% each year based on the new water consumption in the acid pickling process for the year 2021. The targets are outlined in the table below:

Annual	2021	2022	2023	2024	2025	2026	2027
Water consumption per ton of product	2.16	2.05	1.95	1.84	1.73	1.62	1.51

2023 New Water Consumption for Acid Pickling Process and Wastewater Discharge Volume (Taiwan Water Corporation)

Cubic meters of water per ton of product	2021	2022	2023
Per ton of product Volume of new water consumption	2.163	1.862	1.389
Per ton of product Water discharge	1.432	1.247	0.888

▌ Waste

Waste Management

Yieh Hsing has established strict control and audit mechanisms for waste flow and the selection of qualified vendors. Contracts are signed with qualified professional environmental cleanup and treatment companies before proceeding to clear and process the waste for reporting. Additionally, the Company conducts irregular inspections of the waste disposal and handling providers, requiring them to issue proper disposal documents to ensure that the Company's waste is appropriately handled. To date, there have been no incidents of non-compliance by waste disposal and handling contractors.

In support of sustainability and environmental policies, Yieh Hsing invested approximately NT$31 million in the Gangshan plant to install two additional sandblasting machines, aiming to reduce process waste. These sandblasting machines successfully underwent trial runs starting in January 2023 and have now effectively reduced acid consumption by about 20% and decreased subsequent waste sludge generation by approximately 35%.

Waste Generation Structure

Yieh Hsing aligns with the Ministry of Environment's Resource Circulation Administration resource recycling policies, focusing on waste resource recycling and sustainable development. Waste iron and spent mixed acid produced on-site are recycled and reused by the group's affiliate, Yieh United, as raw materials for producing carbon steel and stainless steel. Additionally, inorganic sludge is handled by a recycling treatment organization as a controlled low-strength backfill material, achieving effective waste recycling and resource reuse within the plant.

In 2023, the total waste output amounted to 7,425 tons, a reduction of approximately 848 tons compared to 2022. The waste intensity increased from 1.24 tons per NT$ 1 million to 1.48 tons per NT$ 1 million. The overall waste recycling rate for the plant was 95.77%.

Attribute	Types of waste	Handling methods
General industrial waste	Waste refractory materials, inorganic sludge	Landfilling, physical treatment
	Waste lubricating oil, waste electric wires and cables, Non-hazardous sludge	Physical treatment
	Empty iron drums	Cleaning treatment
Hazardous industrial waste	Waste acid mixture	Reuse
Reusable waste	Scrap iron, scrap wood, inorganic sludge	Reuse

_{Note: Excludes household waste generated by offices.}

Source reduction

Yieh Hsing aims to achieve resource recycling and sustainability goals by continuing to promote source reduction and waste recycling. The Company will collaborate with the entire supply chain to reduce raw material usage and minimize the environmental impact of production. We will also continue to implement innovative environmental technology projects to uphold the principles of a circular economy. In addition to enhancing sustainability efforts, we have established strict controls and auditing mechanisms for waste flow and vendor selection to ensure proper and legal handling of waste.

Reduction Targets	2023 Goal	Achievement Status	2024 Goal
Reduction Targets	Total waste reduced by 5%	A decrease of 10.25% compared to 2022	Total waste reduced by 5%
Promotion Measures	Regularly conduct self-inspections of business waste to maintain the effective operation of the environmental management system and to ensure the implementation of environmental management goals, targets, and programs. Enhance environmental education and training to raise awareness among all employees. Promote practices such as sorting household waste and recycling resources, including plastics, paper, and glass bottles and cans, to achieve waste reduction. An "Environmental Report" publication is published on the Company's internal website, which compiles environmental information and promotes the concept of environmental stewardship for employees' reference.
Implementation Results	All types of waste are managed appropriately with no major waste leakage incidents, and all waste disposal methods comply with government regulations. At least once a year, Yieh Hsing inspects the waste removal and treatment contractors stipulated by environmental regulations to understand the operational management of the entrusted waste storage, removal, treatment, and reuse. In 2023, there were no breaches of contract by the waste removal and treatment contractors.

Contractor Management

Yieh Hsing, in accordance with the Regulations Governing Determination of Reasonable Due Care Obligations of Enterprises Commissioning Waste Clearance, conducts at least one inspection visit per year to waste clearance and treatment contractors. Environmental division personnel accompany transport operations to understand the handling and management of the commissioned waste storage, clearance, treatment, and recycling. During transport, controlled triplicate slips are used to ensure the waste is handled by authorized operators, and records are retained. The inspection primarily focuses on the management of the vendors' waste storage areas, the operation of waste treatment equipment, and pollution control facilities. This is to ensure that the vendors maintain quality standards and that the Company's waste is properly handled.

2023 On-Site Monitoring of Waste Haulers

Environmental Protection