Chicony Electronics is active in improving water efficiency and value, reducing environmental impacts on water resources, and increasing the use of recycled water. With the aim of precisely grasping the water risk levels at Chicony Electronics' factories located in different parts of the world, the Company has adopted the water risk assessment tools provided by the World Resources Institute (WRI) to identify the possible water risks faced by its factories and the production sites of its top 50 major suppliers prior to 2023. The water risk identification was conducted by referencing the water-related physical risks recommended in the TNFD framework, including the five major water resources indicators―water stress level, riverine flooding risk, coastal flooding risk, untreated connected wastewater, and coastal eutrophication potential (CEP).

Water risk identification for CEC bases and the top 50 major suppliers

Note:

1. CEC's operation sites/bases includes HQ, CEM2, MR, CEM3, CEM5, CET and CEZ.
2. The top 50 major suppliers were determined by sequencing the Company's 84 Significant Suppliers from 2023 according to total procurement amount.

In terms of the water stress level indicator, the Company's CEM3 and CET have been assessed as being located in high water stress areas. However, as water stress is defined as "the ratio of overall water demand to water supply in the area", water resources risks are only more likely to occur when a factory is located in a high-water-stress area and belongs to a higher water-consumption industry, which causes the factory to compete with local ecosystems for water resources.

Therefore, further scenario analysis of local water supply changes in the river basins where the factories are located has been conducted based on the Weathernews database, and assessments linked with water consumption indicators of CEM3 and CET have also been performed. Since the water consumption by both CEM3 and CET constitutes far less than 1% of the overall water consumption in the areas where they are located, the likelihood that the two factories will be impacted by local water resources conditions is not high. Chicony Electronics will continue to promote various water conservation measures, including internal water saving practices, reinforced wastewater classification systems, process water consumption reduction, and reuse of recycled/reclaimed water to cope with possible water risks.

Water Supply in CEM3 and CET Areas

The major source for Chicony Electronics' water withdrawal is tap water, with a small portion coming from recovered rainwater. The water consumption is mainly for employees' daily needs, air-conditioning facilities, and factory equipment. With the exception of a very small proportion of the equipment that needs to use purified water, most of the equipment uses tap water directly. The domestic sewage produced is treated through proper sewage treatment facilities, and then discharged to the sewage system. The total water withdrawal in 2024 was 1,335.354 ML, representing a 3.64% increase compared with 2023; the water withdrawal intensity was 0.0216 ML/NT$ million, representing a 0.7% reduction compared with 2023 and did not achieve the goal stated in the Company's Water Security Policy. The main reason for the continued increase in tap water consumption is the company's business expansion, production linereconfiguration, and product portfolio adjustment.

However, the Company continues to inspect for pipe leaks, promote water conservation, and implement water-saving measures and wastewater recycling in its processes. In addition, the commissioning of water recycling systems at the CEM2, CEM3, and CET has contributed to a steady increase in both the volume and rate of water reuse. Purified rainwater is used for irrigation and cooling towers, while process-recycled water is reused within the production process itself.

Water Withdrawal and Water Consumption

Unit: Megaliters

CEC actively promotes water-saving measures across its facilities through regular meetings and the implementation of environmental management systems. In 2024, a total of six watersaving initiatives were completed, resulting in a reduction of 40,882 cubic meters in water consumption compared to 2023. The total investment amounted to NT$856,289, generating annual water-saving benefits valued at NT$829,587. In 2025, it is projected that six new projects will be completed, resulting in a cumulative water savings of 52,000 cubic meters.

Water Conservation Highlights Case Study of CEM5

This project replaced foot-operated flush valves with flush tanks to effectively control the amount of water used per flush and prevent continuous leakage caused by valve malfunctions. In addition, the replacement of concealed PVC water supply pipes with exposed PPR pipes not only reduces the risk of leakage but also facilitates maintenance, ensuring the stable operation of the water supply system. This improvement enhances water use efficiency and contributes to achieving water conservation goals.

 

Annual water savings: 17,152 Cubic Meters

Chicony takes a rigorous approach to managing the environmental impact of its water usage at all sites. The majority of wastewater discharged from facilities consists of domestic sewage, which is collected via dedicated pipelines and sent to nearby wastewater treatment plants for secondary treatment before discharge. All operations strictly comply with local environmental regulations, with regular monitoring and testing conducted at factory discharge outlets. In 2024, there were no instances of exceeding regulatory discharge limits.