CLIMATE ACTION
Climate Action (TCFD) _
Climate-Related Financial Disclosures (TCFD) Governance
With regard to the risk management related to climate change, the Board of Directors is the highest governance body and conducts supervision. The ESG Operations Committee subordinate to the Board of Directors is responsible for promotion under the supervision of the Board and reports to the Board on a regular basis. In 2025, the Sustainability Office took the responsibility for promotion, checked the operational aspects and issues affected by climate disasters, formulated action plans, and clarified the impact of the climate disasters on material operational aspects (such as assets and production) in accordance with the Task Force on Climate-related Financial Disclosures (TCFD). The Sustainability Office further checked the issues affected under each operational aspect and the reasons of the impact in order to reflect the impact of the climate disasters on the finance of the Company.
Climate Change Governance and Management Structure
Board of Directors
- The Board of Directors is the highest decision-making body in the management of the Company’s climate change risks. Its responsibilities include reviewing the policies and making important decisions related to climate change management, and supervising the effective operation of the management mechanism.
- The Board of Directors reviews the climate change risks and opportunities of the Company and incorporates them in the discussion scope of the annual budget, business plan and major capital expenditures.
Sustainability Committee
- Report the assessment results and work progress of climate risks and opportunities to the Board of Directors every year.
- Take the responsibility for implementing the climate change management policy and major resolutions reviewed by the Board of Directors.
ESG Operations Committee
- Periodically follow up the information on the development trend of international climate change in order to improve the understanding of global risk trends and climate change among the employees.
- Take the responsibility for the identification and assessment of climate change risks and opportunities and periodical arrangement of climate change discussion meetings. It gathers the Risk Management Group to identify the physical risks, transition risks, and opportunities of climate change, proposes corresponding improvement measures, periodically follows up implementation status and goals, and continue to enhance the management of climate risks and opportunities.
Management of Climate Change Related Risks and Opportunities
Identification Process of Climate Change Related Risks and Opportunities
To effectively manage climate-related risks and opportunities, the Company’s Sustainability Office under the ESG Operations Committee convened top executives on October 8, 2025 to discuss and assess the transition risks (policy and regulation, technology, market, reputation), physical risks (immediate, long-term), and opportunities (resource efficiency, energy source, product/service, market, resilience) in the TCFD.
TCFD education and training
The Sustainability Office refers to internal and external information and lists business-related climate change risk and opportunity factors.
Summarization identification results
The Sustainability Office summarizes the climate change risk and opportunity factors of each department and calculates the likelihood of occurrence and impact of climate change risks/opportunities
Establishment of response strategies
The responsible unit writes down response strategies for major climate risks and opportunities
Calculation of potential financial impact
The responsible unit calculates financial impact of risks/opportunities
Establishment of goals
The responsible unit establishes corresponding indicators and goals for evaluating the implementation status of relevant response strategies
Implementation of policies
The Sustainability Office follows up the implementation status on a regular basis. The Sustainability Committee report to the Board of Directors periodically as a reference for follow-up of performance.
Identification Results of Climate Change Risks and Opportunities Risk:
(1) Rick (Matrix Chart)
| Risk level | Risk category | Risk factor |
|---|---|---|
| Significant | Market risk | Increase in raw material costs |
| Technology risk | Cost expenditures for low-carbon transition | |
| Policy and regulatory risk | Greenhouse gas reduction regulations | |
| Policy and regulatory risk | Carbon pricing mechanism | |
| Market risk | Changes in consumer preferences | |
| Acute risk | Increase in the frequency and intensity of typhoons | |
| Reputational risk | Decline in brand reputation | |
| Secondary | Acute risk | Increase in extreme rainfall events |
| Chronic risk | Water shortage or water rationing |
(2) Opportunities (Martrix Chart)
| Opportunity level | Opportunity category | Issue |
|---|---|---|
| Significant | Resilience | Develop renewable energy projects and adopt energy-saving measures |
| Product and service | Develop or expand low-carbon products and services | |
| Market | Business growth opportunities from new markets | |
| Resource efficiency | Transition toward more efficient processes | |
| Secondary | Energy source | Use low-carbon energy |
| Market | Increase brand customers’ willingness to place orders |
Scenario Assessment of Key Climate Risks
Rexon Industrial has completed the identification of climate-related risks and opportunities. To simulate and assess the potential impact of climate risks on operations under different climate change pathways, the Company further selected one physical risk and one transition risk as the scope of its scenario analysis. By modeling changes in risks under different climate scenarios, the Company aims to assess their potential impacts on its operating model, business strategy, and financial performance. The assessment results will serve as a key basis for future strategy adjustments, resource allocation, and resilience enhancement measures.
Climate-Related Scenario Analysis Results
(1) Physical Risk Scenario Analysis: Risk Levels Under Different Scenarios
| Climate-Related Physical Risk |
|---|
| The increasing severity of flooding caused by extreme weather events, such as typhoons and floods |
| Climate-Related Physical Risk | Scenario | SSP1-2.6 | SSP1-2.6 | ||||
|---|---|---|---|---|---|---|---|
| Estimated Maximum Flood Depth | 0.3-0.5m | 0.5-1m | 1m-2m | 0.3-0.5m | 0.5-1m | 1m-2m | |
| The increasing severity of flooding caused by extreme weather events, such as typhoons and floods | Estimated Flooding Ratio of Owned Sites | 0% | 0% | 0% | 0% | 0% | 0% |
| Estimated Flooding Ratio of Supplier Sites | 0% | 0% | 0% | 0% | 0% | 0% | |
(2) Transition Risk Scenario Analysis: Risk Levels Under Different Scenarios
| Climate-Related Transition Risk |
|---|
| Changes in consumer preferences toward environmentally friendly and low-carbon products, resulting in reduced demand for non-low-carbon products and products without environmental labels. |
| Climate-Related Transition Risk | Scenario | Net Zero 2050 | Fragmented World | ||||
|---|---|---|---|---|---|---|---|
| Time Horizon | Short Term | Medium Term | Long Term | Short Term | Medium Term | Long Term | |
| Changes in consumer preferences toward environmentally friendly and low-carbon products, resulting in reduced demand for non-low-carbon products and products without environmental labels | Estimated Range of Financial Impact as a Percentage of Total Assets | <5% | <5% | <5% | <5% | <5% | <5% |
Scenario Analysis and Assessment of Strategy and Business Model
Selected Scenario
Risk Type and Description
Selected Scenario
Scenario Description
Key Assumptions
Impact Assessment
Resilience Capacity
Risk Type and Description
Physical Risk / The increasing severity of flooding caused by extreme weather events, such as typhoons and floods
Selected Scenario
IPCC Low Emissions Scenario (SSP1-2.6)
Scenario Description
Under this scenario, warming will be limited to within 2°C by 2100; greenhouse gas emissions will continue to decline and reach net zero by 2075.
Key Assumptions
Key assumptions include:
- Under the SSP1 (Shared Socioeconomic Pathway 1)[1] scenario: Based on WIC2023[2] estimates, Taiwan’s population will gradually decline to approximately 20.43 million by 2050. Income and technological progress are both assumed to be at moderate levels. Production and consumption patterns will continue past trends while inequality will gradually decrease but remain present.
- The highest regional average “annual maximum one-day rainfall” before 2050 under the TCCIP[3] AR6 SSP1 statistically downscaled data is adopted.
- No material changes are assumed in the number or geographic locations of plants; that is, plant relocation is not taken into consideration.
- No material changes are assumed in suppliers; that is, supplier restructuring plans are not taken into consideration.
Selected Scenario
IPCC Very High Emissions Scenario (SSP5-8.5)
Scenario Description
Under this scenario, there is a greater than 50% probability that warming will exceed 4°C by 2100. By 2050, greenhouse gas emissions are roughly estimated to double from current levels, and by 2100, they are expected to reach three times current levels.
Key Assumptions
Key assumptions include:
- Under the SSP5 (Shared Socioeconomic Pathway 5) scenario: Based on WIC2023 estimates, Taiwan’s population will decrease more significantly, reaching approximately 19.41 million by 2050. Income levels are assumed to be high, free trade is adopted and social inequality decreases. Production, consumption, and lifestyle patterns under this pathway are highly resource-intensive.
- Society relies on fossil fuels for development.
- The highest regional average “annual maximum one-day rainfall” before 2050 under the TCCIP AR6 SSP5 statistically downscaled data is adopted.
- No material changes are assumed in the number or geographic locations of plants; that is, plant relocation is not taken into consideration.
- No material changes are assumed in suppliers; that is, supplier restructuring plans are not taken into consideration.
Impact Assessment
Based on the scenario analysis results, under both scenarios, the Company’s owned sites and the suppliers for the nine major processes are not affected. All sites are located outside the areas predicted by the flood hazard potential maps to be subject to possible flooding.
Resilience Capacity
The Company’s current operating sites and major suppliers are not exposed to potential flooding. Nevertheless, to strengthen its resilience to this risk, the Company will continue to actively evaluate plans for adding operating sites and diversifying suppliers. This ensures that even if a single site (supplier) is affected under an extreme scenario, the Company can continue to operate effectively.
-
Except for population, for which quantitative figures at the country/regional level are available, the remaining IPCC scenario assumptions are disclosed qualitatively using the globally applicable descriptions, with reference to the IPCC Summary for Policymakers (p.13), website:
https://www.ipcc.ch/site/assets/uploads/2019/11/02_Summary-for-Policymakers_SPM.pdf - IIASA: The 2023 version of the Wittgenstein Centre (WIC2023) provides population projections under various IPCC scenarios, website:https://dataexplorer.wittgensteincentre.org/wcde-v3/
- aiwan Climate Change Projection Information and Adaptation Knowledge Platform (TCCIP), website:https://tccip.ncdr.nat.gov.tw/ds_02_02_ar6.aspx
Selected Scenario
Risk Type and Description
Selected Scenario
Scenario Description
Key Assumptions
Impact Assessment
Resilience Capacity
Risk Type and Description
Transition Risk / Changes in consumer preferences toward environmentally friendly and sustainable products, resulting in reduced demand for non-low-carbon products and products without environmental labels.
Selected Scenario
NGFS Fragmented World
Scenario Description
This scenario assumes that the implementation of climate-related policies across countries is delayed and divergent, resulting in high global physical risks and high transition risks. The scenario also assumes that countries with net-zero targets only partially achieve their targets (approximately 80% completion), while other countries maintain their current climate policies.
Key Assumptions
Key assumptions include :
- The implementation of climate-related policies across countries is delayed and divergent, resulting in high global physical risks and high transition risks. The scenario also assumes that countries with net-zero targets only partially achieve their targets (approximately 80% completion), while other countries maintain their current climate policies.
- The global market is assumed to be an equilibrium market, where various systems (economic, energy, and trade markets) reach a dynamic supply-demand equilibrium.
- GDP and population projections for each country are based on the latest Shared Socioeconomic Pathways (SSPs) (assuming that global GDP continues to increase at an annual growth rate of 2.5%, and that the global population continues to rise until reaching its peak in 2080, representing an increase of approximately 25% compared with 2025 values).
- The development of global decarbonization-related technologies is assumed to be slow and fragmented.
- No material changes are assumed in the types of products manufactured by the Company, and no material changes are assumed in the number of environmental labels obtained for each product category.
Selected Scenario
NGFS Net Zero 205
Scenario Description
This scenario assumes that the world limits global warming to below 1.5°C through more stringent climate policies and achieves global net-zero greenhouse gas emissions around 2050.
Key Assumptions
Key assumptions include:
- The world limits global warming to below 1.5°C through more stringent climate policies and achieves global net-zero greenhouse gas emissions around 2050.
- The global market is assumed to be an equilibrium market, where various systems (economic, energy, and trade markets) reach a dynamic supply-demand equilibrium.
- GDP and population projections for each country are based on the latest Shared Socioeconomic Pathways (SSPs) (assuming that global GDP continues to increase at an annual growth rate of 2.5%, and that the global population continues to rise until reaching its peak in 2080, representing an increase of approximately 25% compared with 2025 values).
- The development of global decarbonization-related technologies is assumed to be rapid.
- No material changes are assumed in the types of products manufactured by the Company, and no material changes are assumed in the number of environmental labels obtained for each product category.
Impact Assessment
Based on the scenario analysis results, the Company is exposed to low risk under both scenarios in the short term[4] (with the Net Zero 2050 scenario showing a slightly lower level of risk than the Fragmented World scenario). Under the medium- and long-term assessments, the estimated financial impacts under both scenarios increase slightly, with the impact assessment rising to medium risk.
Resilience Capacity
Looking ahead, the Company plans to continue increasing the proportion of low-carbon materials used in its products and further enhance its competitiveness in the sustainable transformation market. This will help ensure that as consumers become more environmentally conscious, change their purchasing habits, and increase their demand for sustainable products, the Company can maintain or even strengthen the competitiveness of its products, reduce transition risks, and enhance its resilience under this scenario.
- The impact assessment is determined based on the ratio of the financial impact caused by scenario analysis stress testing to total assets. A financial impact of less than 5% of total assets in the base year is classified as low risk, 5% to 15% as medium risk, and more than 15% as high risk.
Short-, Medium-, and Long-Term Climate Change Strategy and Business Model Adaptability
Risk category
Risk category
Risk Description
Scenario
Ability to Adjust or Adapt Strategy and Business Model in Response to Climate Change
Risk category
Physical risk
Risk Description
The increasing severity of flooding caused by extreme weather events, such as typhoons and floods
Scenario
IPCC Low Emissions Scenario (SSP1-2.6)
IPCC Very High Emissions Scenario (SSP5-8.5)
Ability to Adjust or Adapt Strategy and Business Model in Response to Climate Change
The Company’s current operating sites and supplier sites are not exposed to flooding risks. Nevertheless, the Company will continue to strengthen its resilience to this risk.
With respect to supply chain resilience and upstream management, the Company is currently taking active measures to ensure supply chain stability and security. These measures include increasing the proportion of parts supplied by second-source suppliers for the Company’s top 10 product models by 3% each year, establishing records for at least 12 alternative raw materials each year, and comprehensively collecting climate risk data from all key suppliers. Through these actions, the Company continues to enhance its supply chain resilience and ensure that its operations are not affected.
Going forward, the Company will continue to actively evaluate plans for additional operating sites and the diversification of supplier sources to ensure that it can properly respond to more severe scenarios and maintain effective operations under extreme climate conditions.
Risk category
Transformation risk
Risk Description
Changes in consumer preferences toward environmentally friendly and sustainable products, resulting in reduced demand for non-low-carbon products and products without environmental labels.
Scenario
NGFS Net Zero 2050
NGFS Fragmented World
Ability to Adjust or Adapt Strategy and Business Model in Response to Climate Change
In the past, the Company has obtained carbon footprint certification for representative products and has also identified its major sources of carbon emissions. In addition, the Company continues to increase the production share of sustainability-related products. These products are developed through measures such as reducing product carbon footprints, improving product energy efficiency and service life, promoting recycling and circularity, adopting modular product design, using low-carbon, safe, and environmentally friendly materials, and enhancing environmental friendliness.
At the same time, the Company has established annual short-, medium-, and long-term targets. The Company aims for sustainable products to account for 25% of operating revenue by 2030 and 75% by 2050. These actions ensure that, as environmental awareness rises in the future, the Company can keep pace with changes in consumer purchasing habits and maintain its competitiveness in sustainability-related products.
Management of Climate Change Related Risks and Opportunities
Types of Climate-Related Risks and Response Strategies
Risk category
Ranking
1
Risk category
Market risk 01
Impact description
Financial Impact
- Increased costs due to raw material shortages
- Production disruptions and operational interruptions caused by raw material shortages, resulting in reduced revenue
Risk factor
Increase in raw material costs
Time Horizon
Medium Term
Operational Impact
Abnormal climate conditions caused by climate change may lead to a sharp decline in raw material output or supply disruptions. Instability in supply-side deliveries may drive up the Company’s manufacturing costs. In the event of extreme shortages, supply chain disruptions may prevent products from being delivered on schedule, potentially resulting in revenue losses.
Impacted Areas of the Industry Value Chain
Upstream
Company
Downstream
Others
Countermeasures
- Enhance supply chain resilience: Diversify sources of raw materials, adopt regional procurement for high-risk key components, and expand alternative suppliers to reduce the impact of disruptions in any single region.
- Strengthen R&D and supply collaboration:Prioritize the evaluation of alternatives for high-impact raw materials, or reduce dependence on specific materials through design optimization to mitigate cost volatility caused by climate policies.
- Establish resilience indicators: Use the annual delivery share of key suppliers as the core assessment basis for allocation and cost leveling to ensure supply stability.
Management Targets
- Increase localization of key materials and backup supplier coverage in high-risk regions, with the ratio of second-source suppliers for the top 10 product models increasing by 3% each year.
- Complete records for at least 12 alternative key risk materials each year.
- Maintain cooperation and delivery stability with key suppliers, with their delivery share not falling below the prior-year level (by category).
Financial Impact of Response Measures
- Increased costs from multiple supply sources: Ensuring diversified sources of raw materials may increase inventory holding costs and management costs related to coordination with multiple suppliers.
- Cost of alternative raw materials and design changes: Identifying alternative materials may increase sourcing and negotiation time and labor costs while product design adjustments may also increase R&D expenses.
- Costs and benefits of establishing long-term supplier relationships: Maintaining long-term cooperation with suppliers may increase negotiation costs in the short term; however, it can secure priority supply during shortages and reduce the risks of supply chain disruption and revenue loss.
Ranking
2
Risk category
Technology risk
Impact description
Financial Impact
- As carbon tariffs in regions such as the European Union and the United States become increasingly stringent, customers may raise their carbon emissions requirements for the Company, potentially resulting in lower revenue for the machine tool and fitness equipment business groups.
- Establishing a low-carbon materials database, introducing new materials and processes, and developing or obtaining regulatory-compliant testing and certifications will increase R&D and production costs.
- Investments in low-carbon process technologies and energy-saving equipment will increase related capital expenditures and R&D expenses.
Risk factor
Cost expenditures for low-carbon transition
Time Horizon
Short Term
Operational Impact
- Customers require suppliers to provide low-carbon solutions and impose more stringent carbon-reduction-related product requirements.
- To meet low-carbon transition requirements, the Company needs to adjust product design, materials, and processes, such as using low-carbon or recyclable materials and developing more energy-efficient products that help customers reduce carbon emissions.
- In promoting the low-carbon transition, the Company must also reduce carbon emissions from its own operations, including production, energy use, and logistics.
Impacted Areas of the Industry Value Chain
Upstream
Company
Downstream
Others
Countermeasures
- Business, R&D, and marketing teams will jointly focus on customers that prioritize low-carbon solutions, establish value communication points for low-carbon products, and gradually introduce online sales and digital marketing to enhance market acceptance.
- R&D will lead the establishment of a low-carbon materials database, compiling materials and recycled materials with carbon footprint data (such as recycled aluminum and PCR plastics), and incorporating the database into the design stage as a basis for material selection.
Management Targets
- Complete proposals for four sustainable products to customers in 2026. (1 per quarter)
- Complete the establishment of data for at least 12 low-carbon materials each year.
Financial Impact of Response Measures
- The introduction of low-carbon customer strategies and digital marketing will require additional manpower and marketing expenses, increasing operating costs.
- Measures to establish a low-carbon materials database will increase costs and may result in lower revenue.
Ranking
3
Risk category
Policy and regulatory risk 01
Impact description
Financial Impact
- Initiating carbon inventories and third-party verification will increase related costs.
- Implementing reduction plans will enhance corporate image, increase suppliers’ willingness to cooperate, and strengthen consumer trust in the brand, thereby contributing to revenue growth.
Risk factor
Greenhouse gas reduction regulations
Time Horizon
Short Term
Operational Impact
- The Company is required to regularly conduct carbon inventories and obtain third-party verification.
- Establishing reduction targets and implementing them will help enhance the brand’s green image and strengthen sustainable competitiveness.
Impacted Areas of the Industry Value Chain
Upstream
Company
Downstream
Others
Countermeasures
Rexon continues to monitor domestic and international carbon reduction regulations, and has completed greenhouse gas inventories that have been verified by a third party. Based on the inventory results, the Company promotes energy-saving and carbon reduction measures, including improving energy efficiency, replacing high-energy-consuming equipment, optimizing processes, and evaluating renewable energy. The Company also regularly tracks its carbon emissions performance.
Management Targets
The Company will continue to pass third-party verification each year, and aims to complete the full inventory and verification of the consolidated companies by 2027.
Financial Impact of Response Measures
- In response to carbon reduction regulations, Rexon has completed greenhouse gas inventories and third-party verification, and has promoted energy-saving measures. In the short term, this will require additional operating expenses and capital expenditures.
- In the medium and long term, if carbon emissions do not improve, operating costs will increase as carbon fees and carbon pricing mechanisms become clearer.
- The existing inventory and management foundation enables the Company to understand its carbon emissions structure, respond to policies in advance, reduce compliance costs, and improve operational efficiency, which will support financial performance over the long term.
Ranking
4
Risk category
Policy and regulatory risk 02
Impact description
Financial Impact
Excess carbon emissions may result in carbon fee expenses, increasing operating costs.
Risk factor
Carbon pricing mechanism
Time Horizon
Long Term
Operational Impact
Taiwan’s Climate Change Response Act will initially impose carbon fees on specific industries.
Impacted Areas of the Industry Value Chain
Upstream
Company
Downstream
Others
Countermeasures
Establish a carbon governance structure: The Board of Directors provides oversight, the Sustainability Committee coordinates carbon risk management, and the carbon inventory task force conducts annual inventories.
Management Targets
Complete carbon inventories in line with the reporting schedule each year, report estimated carbon fee exposure, and track progress in carbon risk management.
Financial Impact of Response Measures
The operation of the carbon governance structure has increased greenhouse gas inventory management costs, such as inventory, consulting, and internal manpower costs.
Ranking
5
Risk category
Market risk 02
Impact description
Financial Impact
- Brand customers may shift to other suppliers, resulting in lower revenue.
- By capturing market trends for low-carbon and sustainable products, the Company can enhance proposal opportunities, create revenue growth, and further support growth in corporate market value and share price.
Risk factor
Changes in consumer preferences
Time Horizon
Medium Term
Operational Impact
Abnormal climate conditions caused by climate change may reduce raw material output or disrupt supply, resulting in unstable deliveries and higher manufacturing costs. In the event of extreme shortages, the supply chain may be disrupted, preventing products from being delivered on schedule and resulting in revenue losses.
Impacted Areas of the Industry Value Chain
Upstream
Company
Downstream
Others
Countermeasures
To respond to the significant market risk arising from the shift in consumer preferences toward low-carbon and environmentally friendly products, the business department is required to establish a mechanism for identifying and classifying customers’ low-carbon needs, and to incorporate low-carbon competitiveness into business proposals and pricing strategies.
Management Targets
Complete proposals for four sustainable products to customers in 2026. (1 per quarter)
Financial Impact of Response Measures
In response to consumers’ shift toward low-carbon and environmentally friendly products, the Company has invested in operational management and product adjustments. In the short term, this will increase operating expenses and certain product costs, affecting gross margin. However, these investments can reduce the risk of order losses in the medium and long term, maintain relationships with key customers, and strengthen competitiveness in high-ESG markets. They are therefore necessary investments for risk mitigation and value preservation.
Ranking
6
Risk category
Acute risk
Impact description
Financial Impact
- Operational disruptions caused by typhoons may result in reduced revenue.
- Occupational incidents caused by typhoons may increase compliance costs and compensation expenses.
- Supplier shortages or supply chain disruptions may result in reduced revenue.
Risk factor
Increase in the frequency and intensity of typhoons
Time Horizon
Long Term
Operational Impact
- Typhoons may cause operational disruptions, resulting in delays to original operating plans.
- Strong winds and heavy rainfall caused by typhoons may result in occupational incidents related to employee attendance or operations.
- Some suppliers may experience disruptions to production and shipment due to typhoons, resulting in supplier shortages or supply chain disruptions.
Impacted Areas of the Industry Value Chain
Upstream
Company
Downstream
Others
Countermeasures
(Environmental Safety)
-
Strengthen meteorological monitoring and typhoon preparedness:
The Occupational Safety Department monitors weather information and initiates typhoon preparedness procedures when warnings are issued, such as reinforcing equipment, securing materials, inspecting drainage, and confirming backup power. -
Activate emergency response and ensure employee safety:
During typhoons, inspections are strengthened, necessary protective equipment is provided, and personnel access is controlled to prevent entry into high-risk areas. - (Procurement)
- Secure strategic inventory in advance of typhoon season and establish an emergency second-source supplier mechanism, enabling rapid capacity switching when major production areas are affected by disasters.
Management Targets
(Environmental Safety)
- Shorten disaster-related interruption times and quickly restore production and shipment.
- Ensure zero casualties among personnel during disasters and maintenance operations.
- (Procurement)
- Shorten disaster-related interruption times and quickly restore production and shipment to reduce operational losses.
- Enhance supply chain resilience and steadily increase the proportion of second-source suppliers for key materials to avoid supply disruption risks.
Financial Impact of Response Measures
(Environmental Safety)
- Emergency response and typhoon preparedness will increase operating costs but can shorten interruption times and avoid significant revenue losses.
- Plant closures will increase the cost of operational interruptions and shutdowns. Salaries must still be paid during work suspensions, additional protective equipment must be purchased for inspection personnel, and post-disaster repairs and outsourced maintenance costs will increase.
- (Procurement)
- Advance stocking and additional alternative suppliers will increase inventory and negotiation costs, but can prevent supply disruptions, avoid significant revenue losses, and maintain corporate reputation.
Ranking
7
Risk category
Reputational risk
Impact description
Financial Impact
- Lower investor willingness to invest may cause the Company’s share price to decline.
- Lower supplier willingness to cooperate may expose the Company to supply disruption risks, or brand customers may become less willing to work with the Company due to reduced trust, resulting in revenue declines.
Risk factor
Decline in brand reputation
Time Horizon
Long Term
Operational Impact
- Failure to meet investors’ expectations for corporate sustainability may reduce investors’ willingness to invest.
- Damage to corporate image may reduce suppliers’ willingness to cooperate and lower brand customers’ trust in the Company.
Impacted Areas of the Industry Value Chain
Upstream
Company
Downstream
Others
Countermeasures
- Establish a climate risk identification mechanism for key suppliers, prioritizing the assessment of energy use, emissions, and carbon reduction measures for suppliers with high carbon emissions and high supply disruption risks, and incorporating such assessments into procurement management.
- Improve the transparency of climate-related information disclosure, continue to disclose carbon emissions data, and strengthen response capabilities to meet the needs of partners and stakeholders.
Management Targets
- Increase local procurement of key materials and backup supplier coverage for high-risk suppliers, and increase the ratio of second-source suppliers for the top 10 product models by 3% each year.
- Update climate-related information on the official website, in the annual report, and in the sustainability report at least once each year, and collect stakeholder feedback on the brand through diverse channels.
Financial Impact of Response Measures
- The Company has invested resources in climate risk inventories, data collection, and system development for key suppliers. In the short term, this will only result in a slight increase in management and manpower costs, with no material financial impact.
- In response to sustainability disclosure needs, the Company has invested in management and data response costs, which will help maintain customer cooperation and market access. In addition, to respond to climate risks and market demand, the Company has invested operating and R&D expenses in product design, energy efficiency, and emissions management. While costs will increase in the short term, these investments will help enhance competitiveness.
Types of Climate-Related Opportunities and Response Strategies
Opportunity category
Ranking
1
Opportunity category
Resilience
Impact description
Financial Impact
- Optimize the energy cost structure.
- Reducing energy consumption can lower energy costs at the source.
Risk factor
Develop renewable energy projects and adopt energy-saving measures
Time Horizon
Medium Term
Operational Impact
- Promote diversified energy-saving and energy-generation solutions, such as integrating solar energy with high-performance battery energy storage systems, conducting lighting evaluations, and mitigating compressed air leakage. Ensure stable energy supply under different operating environments.
- Adopt energy-saving measures to reduce the Company’s energy consumption.
Impacted Areas of the Industry Value Chain
Upstream
Company
Downstream
Others
Countermeasures
Install additional high-speed roll-up doors in plant areas to prevent air-conditioning leakage and reduce the energy load of air-conditioning systems.
Management Targets
Air-conditioning electricity consumption is expected to decrease by 12% in 2026.%
Financial Impact of Response Measures
Capital expenditures are expected to increase, while operating expenses for electricity consumption are expected to decrease.
Ranking
2
Opportunity category
Product and service
Impact description
Financial Impact
Low-carbon products may attract customers or enable the Company to enter new markets, potentially increasing revenue.
Risk factor
Develop or expand low-carbon products and services
Time Horizon
Medium Term
Operational Impact
Customers’ demand for low-carbon and sustainable products is increasing. Capturing low-carbon business opportunities may help attract new customers and enter new markets.
Impacted Areas of the Industry Value Chain
Upstream
Company
Downstream
Others
Countermeasures
Use potential low-carbon materials for product and process innovation and R&D, and continue to develop low-carbon products.
Management Targets
The Company expects to complete the development of two low-carbon products by 2027.
Financial Impact of Response Measures
In the early stage of low-carbon product development, R&D and marketing expenses will increase. However, as products mature and market acceptance improves, product premiums or sales volume growth may drive revenue growth and improve medium- and long-term profitability.
Ranking
3
Opportunity category
Market
Impact description
Financial Impact
Entering the sustainable product market is expected to expand markets and customers and increase revenue.
Risk factor
Business growth opportunities from new markets
Time Horizon
Short Term
Operational Impact
Enter sustainable product areas related to the fuel-to-electric transition and low-carbon materials, such as drones, e-bikes, and garden tools.
Impacted Areas of the Industry Value Chain
Upstream
Company
Downstream
Others
Countermeasures
In response to new market demand driven by rising global sustainability awareness, the Company targets sustainability-oriented customers, strengthens business proposals for low-carbon products and environmental benefits, and integrates cross-departmental resources to actively capture business growth opportunities from new markets.
Management Targets
The Company has incorporated measurable and trackable new market development results into the performance indicators of the business department.
Financial Impact of Response Measures
In response to business growth opportunities from new markets, the Company has invested related manpower, R&D, and management resources in the short term, resulting in slight increases in operating expenses and certain product development costs. In the medium and long term, successful entry into sustainability-oriented new markets is expected to expand revenue scale, improve the gross margin structure, and strengthen customer loyalty.
Ranking
4
Opportunity category
Resource efficiency
Impact description
Financial Impact
- Improved energy efficiency can reduce energy expenses.
- Lower product energy consumption may attract new customers and increase revenue.
Risk factor
Transition toward more efficient processes
Time Horizon
Short Term
Operational Impact
- Improve equipment efficiency and reduce energy and resource consumption.
- Low-energy-consumption products can attract customers with demand for sustainable products and create business opportunities.
Impacted Areas of the Industry Value Chain
Upstream
Company
Downstream
Others
Countermeasures
Add inspection equipment to check for compressed air leakage.
Management Targets
The Company expects to purchase an acoustic imaging device in 2026. After the device is acquired, monthly inspections of compressed air pipeline leakage points will be conducted by area, followed by leak prevention measures, with the goal of reducing air compressor energy consumption by 30%.
Financial Impact of Response Measures
Capital expenditures are expected to increase, while operating expenses are expected to decrease due to reduced air compressor energy consumption.
GREENHOUSE GASMANAGEMENT
Greenhouse Gas Management (Material Topic) _
Material Topics
Climate Change Management(Greenhouse Gases)
Description of positive benefits
Actual positive:
- We increase the proportion of green energy usage, reduce carbon footprint, promote energy self-sufficiency, improve corporate energy efficiency, reduce electricity consumption, and reduce carbon emissions. These initiatives support our commitment to ESG (environmental, social, and governance) sustainability and contribute to global environmental protection and sustainable use of resources.
- When actively implementing carbon reduction measures, the Company can directly reduce the carbon footprint of products, but needs to make capital investment accordingly.
Description of negative benefits
Actual negative:
In 2025, total greenhouse gas emissions amounted to 48,107.089 tCO₂e/year, contributing to climate change and impacting the environment of local communities.
Potential negative :
Rexon cannot effectively reduce electricity consumption, carbon emissions, and environmental impacts, without increasing the use of green energy in the factory area and adopting smart power consumption solutions.
Management mechanisms / measures
The ESG Committee establishes SBTi-aligned reduction targets and reviews progress toward achieving these targets on a monthly basis.
Complaint / communication channels
Contact : Biotechnology Section
Email : marco.chou@rexon.com.tw
2025 Action Plan Implementation Results
Action Plan
To comply with the disclosure schedule of greenhouse gas inventory information for TWSE/TPEx listed companies set forth under the “Sustainable Development Roadmap for TWSE/TPEx Listed Company” of the Financial Supervisory Commission, Rexon Industrial will complete the greenhouse gas inventory task within the specified schedule for the subsidiaries in the consolidated financial statements based on their operational style and significance.
Implementation results
Rexon Industrial completed the greenhouse gas inventory for its Taiwan production bases (including the headquarters and its subsidiary, Rexon Technology) and obtained an ISO 14064-1 verification statement
Achievement status of 2025 goals
Goals
- By July 2025, we will complete the greenhouse gas inventory and verification scope for Rexon Industrial and Rexon Technology, based on the year 2024.
- Implement various energy reduction projects (Scope 1 and Scope 2).
Achievement status
Goals achieved
- In May 2025, Rexon Industrial and Rexon Technology completed the 2024 greenhouse gas inventory and verification, and obtained the SGS statement in August of the same year.
- Total Scope 1 and Scope 2 emissions in 2024 amounted to 3,446.9972 tCO₂e, representing a decrease of 0.6% compared with 2023.
Short / Medium / Long-term Goals
Short-term Goals (2026-2027)
- Complete the 2025 greenhouse gas inventory and verification scope for the parent company, Rexon Industrial, its subsidiary Rexon Technology, and P.T.S. in the United States by April 2026.
- In 2026, revise the inventory coverage for Category 3.1 and 4.1 greenhouse gas emissions at Rexon Industrial’s Dali Plant, which relate to emissions from transportation and products used by the organization. The coverage will be changed from 90% of production models to the top four raw materials by material usage in the product portfolio.
- The subsidiary Tongxiang Rexon (China) is expected to complete its 2026 greenhouse gas inventory in January 2027 and complete verification in May 2027.
Medium-term and Long-term Goals (2028~2032)
- In 2028, Rexon Industrial’s Dali Plant is expected to expand the inventory coverage for Category 3.1 and 4.1 greenhouse gas emissions relating to transportation and products used by the organization, from the top ten material suppliers by procurement amount to the top fifteen suppliers.
- By the year 2030, Rexon Industrial Dali Plant aims to use 15% green energy.
- In accordance with government policies and regulations, the plan is to achieve zero greenhouse gas emissions from all operational sites by 2050.
Management of Climate Change Related Risks and Opportunities
2023 (Verify 2022 in 2023)
Taiwan Rexon Plant
2024 (Verify 2023 in 2024)
Taiwan Rexon Plant
Tucheng Plant
2025 (Verify 2024 in 2025)
Taiwan Rexon Plant
Tucheng Plant + Rexon Technology
2026 (Verify 2025 in 2026)
Taiwan Rexon Plant
Tucheng Plant + Rexon Plant PTS
2027 (Verify 2026 in 2027)
Taiwan Rexon Plant
Tucheng Plant + Rexon Plant + PTS + Tongxiang Rexon + Vietnam
Rexon Zero Carbon Emissions Blueprint
2023 (Low Carbon)
2030
2050 (Net Zero Emissions)
Process Improvement
Replacement of outdated equipment and automation
Inventory and hotspot analysis of high-energy-consuming equipment by plant area
High-energy-consuming equipment replacement
Intelligent energy management
Evaluation of intelligent energy monitoring system + ISO5001
Implementation of ISO5001
Establishment of an intelligent energy
monitoring system by plant area
Enhancement of production efficiency
PDCA improvement activities to enhance production efficiency
Waste reduction
Reduce scrap materials by 5% annually by Model
Energy Transition
Installation of solar energy systems
Installation of solar panels on rooftops
Integration into the internal power grid
Utilization of green energy
Use of green electricity by 15% of the factories in Taiwan
Evaluation of purchasing
green energy certificates
Promotion of green energy usage
to 15% of the Group
Circular Economy
Research and Development (R&D) and innovation
25% proportion of the sustainable product revenue
75% proportion of the sustainable product revenue
Improvement of design by switching to materials of low environmental impact and systematizing product carbon footprints
Sustainable supply chain
Establishment of a sustainable supply chain management policy
Promotion to the suppliers that account for 95% of the transaction amount in the previous year
Greenhouse Gas Emissions Management
The 2025 internal inventory results show that total greenhouse gas emissions amounted to 48,107.089 tCO₂e/year. The relevant data will be subject to third-party verification in April 2026. Total emissions in 2025 were 48,107.089 tCO₂e/year, representing a decrease of 1,390.670 tCO₂e/year compared with total emissions of 49,497.759 tCO₂e/year in 2024, showing a slight downward trend.
If measured by emission intensity (tCO₂e/NT$ million of revenue):
2023 emissions intensity (verified by a third party in 2024)
11.1574
2024 emissions intensity (verified by a third party in 2025)
8.1157
2025 emissions intensity (verified by a third party in 2026)
8.8770
In 2025, in addition to the impact of lower revenue, the inventory data of the U.S. subsidiary (P.T.S.) was also included, resulting in a slight increase in the Group’s emissions intensity. Going forward, the Company will continue to improve operational efficiency, optimize its product portfolio, and adjust its supply chain structure, among other measures, to reduce carbon emissions per unit of output.
Year
2023
2024
2025
Revenue(million NT dollars)
6,708
6,099
5,419
Type
Total Emissions
(tCO2e)
Percentage
(%)
Greenhouse Gas Emissions Intensity
(tCO2e/NTD million)
Total Emissions
(tCO2e)
Percentage
(%)
Greenhouse Gas Emissions Intensity
(tCO2e/NTD million)
Total Emissions
(tCO2e)
Percentage
(%)
Greenhouse Gas Emissions Intensity
(tCO2e/NTD million)
Direct Greenhouse Gas Emissions
Category 1(Direct Emission)
426.1051
0.57%
0.0635
466.6378
0.94%
0.0765
357.4929
0.74%
0.0660
Indirect Greenhouse Gas Emissions
Category 2(Energy)
3,043.2969
4.07%
0.4537
2,980.3594
6.02%
0.4887
3,010.2721
6.26%
0.5555
Category 3(Transportation)
925.9911
1.24%
0.1380
643.2330
1.30%
0.1055
505.4805
1.05%
0.0933
Category 4(Product Used)
70,448.5887
94.13%
10.5022
45,407.5284
91.74%
7.4451
44,233.8431
91.95%
8.1623
Category 5(Use of Products)
0.0000
0.00%
0.000
0.0000
0.00%
0.000
0.0000
0.00%
0.000
Category 5(Other Sources)
0.0000
0.00%
0.000
0.0000
0.00%
0.000
0.0000
0.00%
0.000
Total emissions
74,843.982
100.00%
11.1574
49,497.759
100.00%
8.1157
48,107.089
100.00%
8.8770
- In 2023, the inventory scope covered only the Renhua Plant and Tucheng Plant of the Taiwan headquarters. Rexon Technology was included in 2024, and P.T.S. was included in 2025. Domestic and overseas sales sites and production sites will be included progressively in accordance with the future greenhouse gas management schedule.
- The operational control approach is used to define the boundaries, and the calculation method adopts the emission factor approach.
- Depending on the emission source, emission factors are converted using factors and data from sources including the Greenhouse Gas Emission Factor Management Table of the Ministry of Environment, Executive Yuan (Greenhouse Gas Emission Factor Calculation Table announced on February 5, 2024), the Product Carbon Footprint Information Network, Ecoinvent v3, mass balance calculations, the global warming potential (GWP) factors from the IPCC Sixth Assessment Report (2021), and ICAO flight carbon emissions. If the government publishes new factors in the future, the Company will adjust the selection of GWP factors in accordance with the requirements of the competent authorities. Carbon emissions from flights based on ICAO data, are used for conversion. In the future, if the government announces new factors, we will comply with the regulations of government agencies and adjust the selection of GWP coefficients accordingly.
- The electricity emission factor for the Taiwan headquarters is based on the electricity emission factor announced by the Energy Administration, which is 0.474 tCO₂e per thousand kWh (2024).
- The greenhouse gas emission intensity is calculated as the annual greenhouse gas emissions divided by the net consolidated revenue for the year (in million dollars).
ENERGY MANAGEMENT
Energy Management (Material Topic) _
Material Topics
Climate Change Management (Energy Management)
Description of positive benefits
Actual positive:
Improving energy efficiency, reducing energy consumption and emissions, minimizing environmental impacts, and lowering operating costs can also enhance corporate resilience and competitiveness, helping the Company respond to customer and international market requirements for low-carbon supply chains.
Description of negative benefits
Potential negative :
As a company operating in the traditional manufacturing industry, Rexon can not effectively reduce electricity consumption and carbon emissions, and thereby mitigate the impact on the environment, without increasing the use of green energy in the factory area and adopting smart power consumption solutions.
Management mechanisms / measures
Establish an energy management system and regularly inventory electricity, fuel, and other energy data.
Promote energy-saving projects, such as equipment improvements, lighting replacements, and production line optimization.
Set annual carbon reduction and energy-saving targets, and track improvement results.
Analyze greenhouse gas inventory results and propose reduction strategies.
Gradually introduce renewable energy and high-efficiency equipment.
Complaint / communication channels
Contact : Biotechnology Section
Email : xiao.chen@rexon.com.tw
2025 Action Plan Implementation Results
Action Plan
- Compressed air pipeline leakage prevention measures.
- Upgrade of air-conditioning equipment and installation of additional high-speed roll-up doors.
- Traditional lighting equipment was replaced with energy-saving LED lamps.
- Solar green electricity installation.
- Process equipment optimization
- Smart meter installation.
Implementation results
- A total of 93 compressed air pipeline leakage points were eliminated in the assembly and processing areas, reducing waste by 33% and lowering electricity consumption of the air compressor in Building E by 0.31%.
- Replacement rate of air conditioners using R22 refrigerant in the factory area: 100% A total of 10 high-speed roll-up doors were installed to provide thermal insulation, keeping the indoor temperature difference below 5°C.
- In 2025, a total of 684 LED tubes were replaced in the building, achieving a replacement rate of 100%.
- In 2025, solar power generation was completed for Buildings C/D, with total green electricity generation reaching 1,882,132 kWh(solar power generation is expected to be converted to self-generation and self-consumption in 2036). Total electricity consumption of the plant in 2025: 6,161,152 kWh. Green electricity accounted for 30.5% of the plant’s electricity consumption.
-
Two plastic injection molding machines were replaced in April, saving 39,072 kWh annually.
Energy-saving improvements were made to 15 production line packaging machines. Each machine saves 6.88 kWh per day, resulting in total annual savings of 27,245 kWh.
Energy-saving improvements for water dispensers: 42 units in the building/plant were set to standby mode from 22:00 to 7:00. Each unit saves 2 kWh per day, resulting in total annual savings of 22,176 kWh. - In August 2025, additional smart meters were installed for air compressors, the high-voltage station, solar power, and Manufacturing Department I, achieving a completion rate of 100%.
2025 Target Achievement Status
Goals
- Compressed air pipeline leakage prevention measures.
- Upgrade of air-conditioning equipment and installation of additional high-speed roll-up doors.
- Traditional lighting equipment was replaced with energy-saving LED lamps.
- Solar green electricity installation.
- Process equipment optimization.
- Smart meter.
Achievement status
- Improvements were made to 93 compressed air pipeline leakage points, reducing electricity consumption of the air compressor in Building E by 0.31%.
- The replacement rate for R22 refrigerant air-conditioning units in the plant reached 100%. A total of 10 high-speed roll-up doors were installed to provide thermal insulation, achieving an indoor temperature difference of less than 5°C.
- The replacement of 684 LED tubes in the building was completed ahead of schedule in 2025, achieving a replacement rate of 100%
-
In 2025, solar power generation was completed for Buildings C/D, with total green electricity generation reaching 1,882,132 kWh(solar power generation is expected to be converted to self-generation and self-consumption in 2036).
Total electricity consumption of the plant in 2025: 6,161,152 kWh
Green electricity at the plant reached 30.5%. -
Two plastic injection molding machines were replaced, resulting in annual electricity savings of 39,072 kWh.
Energy-saving improvements were completed for 15 production line packaging machines, resulting in annual electricity savings of 27,245 kWh.
Energy-saving improvements were implemented for a total of 42 water dispensers in the building/plant, resulting in annual electricity savings of 22,176 kWh. - In 2025, additional smart meters were installed for the air compressors, the high-voltage station, the solar power system, and Manufacturing Department I, achieving a completion rate of 100%.
Short / Medium / Long-term Goals
Short-term Goals(2026-2027)
- Introduce the first phase of the smart energy management system.
- Achieve a 60% replacement rate for high-energy-consuming air-conditioning equipment
- Reduce air compressor energy consumption across the entire plant by 30% through compressed air pipeline leak repair and usage management
- Install welding gas throttle valves on fully automatic welding machines to reduce gas consumption by 30%.
Medium-term and Long-term Goals(2028~2032)
Mid-term goals (3-5 years) expected to be achieved by 2028
- Achieve a 80% replacement rate of high-energy consumption air conditioning equipment on production lines
- Reduce air compressor energy consumption across the entire plant by 50%.
- Achieve energy savings of 10% in processing and manufacturing processes.
Long-term Goals (5-10 years)
- Achieve 30% green electricity use across the entire plant area by 2036.
- Achieve 100% LED coverage across the entire plant area by 2030.
- Achieve a 100% replacement rate for high-energy-consuming air-conditioning equipment on production lines by 2035.
Energy Consumption
In 2025, total energy consumption within the organization was 24,005.99 GJ, representing an increase of 294.42 GJ compared with 2024. The change in energy use was mainly attributable to a decrease in operating activities while certain fixed energy demands remained unchanged. In addition, following the inclusion of emissions data from the U.S. subsidiary, overall energy consumption increased slightly.
Year
2023
Item
Energy Consumption (GJ)
Percentage
Purchased Electricity
22,177.87
95.65%
Diesel Fuel (Fluctuating)
258.56
1.12%
Liquefied Petroleum Gas
0.35
0.00%
Gasoline
748.28
3.23%
Diesel Fuel (Stationary)
2.11
0.01%
Natural Gas
0.00
0.00%
Total
23,187.17
100.00%
Revenue(million NT dollars)
6,708
Energy Intensity(GJ/million of revenue)
3.4566
Year
2024
Item
Energy Consumption (GJ)
Percentage
Purchased Electricity
22,635.60
95.46%
Diesel Fuel (Fluctuating)
258.54
1.09%
Liquefied Petroleum Gas
0.36
0.00%
Gasoline
815.62
3.44%
Diesel Fuel (Stationary)
1.41
0.01%
Natural Gas
0.00
0.00%
Total
23,711.57
100.00%
Revenue(million NT dollars)
6,099
Energy Intensity(GJ/million of revenue)
3.8878
Year
2025
Item
Energy Consumption (GJ)
Percentage
Purchased Electricity
22,954.63
95.62%
Diesel Fuel (Fluctuating)
270.68
1.13%
Liquefied Petroleum Gas
0.34
0.00%
Gasoline
763.77
3.22%
Diesel Fuel (Stationary)
16.87
0.07%
Natural Gas
0.00
0.00%
Total
24,006.26
100.00%
Revenue(million NT dollars)
5,419
Energy Intensity(GJ/million of revenue)
4.4300
- The source of the coefficient for purchased electricity, gasoline, and diesel fuel is the Energy Bureau of the Ministry of Economic Affairs, Energy Product Unit Heat Value Table.
- The calorific value coefficient for liquefied petroleum gas is sourced from the Greenhouse Gas Emission Factor Management Table of the Ministry of Environment, Executive Yuan (Greenhouse Gas Emission Factor Calculation Table announced on February 5, 2024).
- The conversion formula for heat value is: Original Usage Amount * Unit Conversion Coefficient * Heat Value Conversion Coefficient.
- Only Tucheng Plant used natural gas in 2025.
Energy Intensity Analysis
In 2025, energy intensity was 4.4300 GJ/NTD million in revenue, up 0.5422 GJ/NTD million from 3.8877 GJ/NTD million in 2024.
The main reason was as follows: The machinery and equipment in the plant continued to operate on a fixed daily basis, and energy consumption did not change significantly compared with the previous year. As revenue declined, energy use intensity per unit of revenue increased.
2023: Base year | 2024: Purchased electricity accounted for 95.46% | 2025: Purchased electricity accounted for 95.62%
Energy Saving Measures
Energy Saving Improvement Activities
Energy-Saving Improvement Activities of the Manufacturing Department
Plant area
Energy Conservation Measures
Power Saving kWh/yea
Carbon Reduction tCO2e/year
Related photos
Plant area
Compressed air pipeline leakage inventory and repair
Energy Conservation Measures
Improvements were made to 93 compressed air pipeline leakage points, reducing electricity consumption of the air compressor in Building E by 0.31%.
Power Saving kWh/yea
13,482
Carbon Reduction tCO2e/year
6.66
Related photos
Compressed air pipeline leakage prevention inspection
Plant area
Upgrade of air-conditioning equipment and installation of additional high-speed roll-up doors
Energy Conservation Measures
The replacement rate for R22 refrigerant air-conditioning units in the plant reached 100%. A total of 10 high-speed roll-up doors were installed to provide thermal insulation, achieving an indoor temperature difference of less than 5°C.
Power Saving kWh/yea
85,518
Carbon Reduction tCO2e/year
42.244
Related photos
Installation of high-speed roll-up doors in plant areas to preventair-conditioning leakage and isolate external heat sources
Plant area
Replacement of traditional lighting with energy-saving LED tubes
Energy Conservation Measures
The Support Center completed the replacement of 684 LED tubes ahead of schedule in 2025, achieving a replacement rate of 100%.
Power Saving kWh/yea
13,023
Carbon Reduction tCO2e/year
6.433
Related photos
The replacement rate for R22 refrigerant air-conditioning units in the plant reached 100%. A total of 10 high-speed roll-up doors were installed to provide thermal insulation, achieving an indoor temperature difference of less than 5°C.
Plant area
Continued Solar Green Electricity Installation
Energy Conservation Measures
2025 Installation of solar power generation systems in Buildings C/D
Power Saving kWh/yea
1,882,132
Carbon Reduction tCO2e/year
929.773
Related photos
Installation of solar power generation systems in Buildings C/D
Process equipment optimization
Energy-Saving Improvement Activities of the Manufacturing Department
Plant area
Energy Conservation Measures
Power Saving kWh/yea
Carbon Reduction tCO2e/year
Related photos
Plant area
Process equipment optimization
Energy Conservation Measures
Power Saving kWh/yea
Carbon Reduction tCO2e/year
Energy Conservation Measures
Replacement of 400T and 500T injection mol
Power Saving kWh/yea
39,072
Carbon Reduction tCO2e/year
19.301
Energy Conservation Measures
Energy-saving improvements were completed for 15 production line packaging machine conveyors, enabling automatic shutdown and standby mode to reduce electricity consumption
Power Saving kWh/yea
27.245
Carbon Reduction tCO2e/year
13.459
Energy Conservation Measures
Energy-saving improvements were implemented for water dispensers, covering a total of 42 units in the office building and plant areas, resulting in annual electricity savings of 22,176 kWh.
Power Saving kWh/yea
22,176
Carbon Reduction tCO2e/year
10.954
Related photos
Replacement of 400T and 500T injection molding machines
Establishment of an energy management system and smart meters
WATER RESOURCES MANAGEMENT
Water Resources Management _
Rexon is committed to responsible water resource management and complies with domestic and international regulations related to water pollution prevention and sustainable resource use to ensure that its operating activities do not impose a burden on the environment. Water use is mainly for employees’ domestic needs. The Company’s manufacturing processes do not involve water-intensive operations and do not generate industrial wastewater. Domestic wastewater discharged from the plant is subject to long-term testing and management by a legally qualified third-party environmental monitoring agency, ensuring that discharged water meets the applicable standards before being discharged into local surface water bodies.
WASTE MANAGEMENT
Waste Management _
Rexon recognizes the potential environmental impacts of manufacturing activities, particularly the waste generated from metal processing, plastic applications, and paper-based packaging processes. To effectively reduce environmental impacts, the Company follows the management principles of the ISO 14001 environmental management system. Through systematic planning, implementation, review, and continuous improvement mechanisms, Rexon has established a comprehensive waste management system and incorporated waste reduction and proper disposal into its environmental objectives and day-to-day operational management.
Rexon Waste Management
Waste Generation
Recyclable waste and general/industrial waste are generated from manufacturing processes and day-to-day operations.
Classification
Recyclable waste, general waste, and industrial waste are clearly separated to prevent mixing.
Temporary Storage
Waste is temporarily stored in designated areas based on its characteristics, with proper labeling and rainproof and leak-prevention measures in place.
Recycling
Recyclable materials are regularly collected and transported by qualified recycling service providers.
Treatment
Industrial waste is entrusted to legally qualified treatment service providers, with tracking through manifests throughout the entire process.
Recordkeeping
Waste clearance volumes and treatment methods are recorded and included in the annual environmental performance review.
Hazardous waste
Waste composition
Item
On-site
Generation of waste (ton)
Disposal
Off-site
Generation of waste (ton)
Disposal
Waste composition
Item
-
On-site
Generation of waste (ton)
Disposal
-
-
Off-site
Generation of waste (ton)
Disposal
-
-
Non-hazardous waste
Waste composition
Item
On-site
Generation of waste (ton)
Disposal
Off-site
Generation of waste (ton)
Disposal
Waste composition
Item
Municipal solid waste generated by employees (H-0002)
On-site
Generation of waste (ton)
Disposal
9.6
Commissioned disposal
Off-site
Generation of waste (ton)
Disposal
9.6
Incineration treatment
Waste composition
Item
Plastic waste R-0201
On-site
Generation of waste (ton)
Disposal
1.32
Waste that does not need to be cleared
Off-site
Generation of waste (ton)
Disposal
1.32
In-plant reuse
Waste composition
Item
Mixed oil waste (D-1799)
On-site
Generation of waste (ton)
Disposal
0.8
Commissioned disposal
Off-site
Generation of waste (ton)
Disposal
0.8
Physical treatment
Waste composition
Item
Scrap iron (R-1301)
On-site
Generation of waste (ton)
Disposal
55.32
Commissioned disposal
Off-site
Generation of waste (ton)
Disposal
55.32
General business waste subject to reuse
Waste composition
Item
Aluminum scrap (R-1304)
On-site
Generation of waste (ton)
Disposal
1.06
Commissioned disposal
Off-site
Generation of waste (ton)
Disposal
1.06
General business waste subject to reuse
Waste composition
Item
Resin waste (D-0202)
On-site
Generation of waste (ton)
Disposal
0.01
Commissioned disposal
Off-site
Generation of waste (ton)
Disposal
0.01
Heat treatment
Waste composition
Item
Mixed plastic waste (D-0299)
On-site
Generation of waste (ton)
Disposal
0.2
Commissioned disposal
Off-site
Generation of waste (ton)
Disposal
0.2
Incineration treatment
Waste composition
Item
Mixed paper waste (D-0699)
On-site
Generation of waste (ton)
Disposal
0.4
Commissioned disposal
Off-site
Generation of waste (ton)
Disposal
0.4
Incineration treatment
- Please refer to “Waste Cleaning Plan” (classification categories A/B/C/D/E/R, etc.) when completing in the waste composition section.
- Waste weight is measured monthly in metric tons (t).
- Types of recovery operations: include preparation for reuse, recycling, and other recovery operations.
- Types of recycling operations: include downcycling, upcycling, composting, or anaerobic digestion.
- Other recovery operations: include repurposing or refurbishment.
- Types of disposal operations include incineration (with energy recovery), incineration (without energy recovery), landfilling, and other disposal operations.
- The organization can specify other disposal operations, such as dumping, open burning, or deep well injection.
- "Onsite” means within the physical boundary or administrative control of the reporting organization, and “offsite” means outside the physical boundary or administrative control of the reporting organization.
ECOLOGICAL AND BIODIVERSITY MANAGEMENT
Ecological And Biodiversity Management (TNFD) _
In December 2025, Rexon Industrial drafted the “Biodiversity and No-Deforestation Commitment of Rexon Industrial Corp., Ltd.,” which was approved by the Board of Directors in February 2026. The core focus of the commitment covers not only the Company’s own operations but also extends to supply chain management. It clearly states that the Company will work together with its supply chain partners to avoid biodiversity loss and deforestation, and ensure compliance with the applicable regulatory requirements.
Rexon Industrial Corp., Ltd.
Biodiversity and No-Deforestation Commitment
Rexon Industrial firmly believes that protecting biodiversity and conserving forests are essential to achieving sustainable development. As part of its environmental sustainability efforts, the Company not only actively implements energy-saving and carbon-reduction measures to mitigate climate change but also recognizes ecosystem and biodiversity conservation as key actions for advancing environmental sustainability. Beyond its own operations, the Company is committed to working with suppliers across its value chain and encouraging business partners to support biodiversity and forest conservation by taking actions that give due consideration to ecosystems, biodiversity, and forest conservation. Through these efforts, the Company seeks to contribute to environmental and social well-being and advance the United Nations Sustainable Development Goal (SDG) 15, "Life on Land," which calls for protecting, restoring, and promoting the sustainable use of terrestrial ecosystems, sustainably managing forests, combating desertification, halting and reversing land degradation, and halting biodiversity loss.
Corporate Commitments
- The Company’s own operations and supply chain shall comply with the applicable international laws and regulations and those of the jurisdictions in which they operate, and shall avoid establishing operating sites or facilities within or adjacent to areas of global or national importance for biodiversity.
- The Company’s own operations and supply chain partners shall avoid operational activities that damage or adversely affect protected forests and species.
- Where the Company’s own operations are located near key biodiversity areas or involve changes in land use, including the construction of new facilities, adjustments to land allocation and use within existing facilities, or the use of vacant land, the Company shall assess the potential loss of ecological value and strive to achieve its biodiversity-related goals through afforestation or other restoration actions.
- Actively support biodiversity conservation initiatives.
- Promote awareness of biodiversity conservation, deforestation prevention, and forest conservation among internal and external stakeholders, including employees, shareholders, customers, business partners, and supply chain partners, thereby enhancing their awareness of environmental and ecological protection.
- Work with supply chain partners and external stakeholders to support biodiversity conservation, forest conservation, and ecological protection.
- Require supply chain partners to comply with this commitment through the "Supplier Code of Conduct."
- The Company shall not knowingly procure from suppliers that contribute to biodiversity loss or deforestation, or that violate the applicable laws and regulations.
This Biodiversity and No-Deforestation Commitment shall take effect upon approval by the Sustainability Development Committee and subsequent reporting to the Board. The same procedure shall apply to any amendments.
PLANT ENVIRONMENT MANAGEMENT
Plant Environment Management _
Rexon continues to improve the environmental quality surrounding its plant sites. Through regular monitoring, equipment maintenance, and environmental improvement projects, the Company reduces the impact of production activities on air quality, noise levels, and surrounding communities. All environmental factors are continuously tracked by professional testing agencies, and improvement measures are implemented immediately when necessary to ensure that the plant maintains a sound and safe environmental condition.
Air Pollution Source Reduction
Year
Pollution Source (Process)
Reporting Month
Emissions (kg/quarter)
Standard
Year
2023
Pollution Source (Process)
Volatile Organic Compounds
Reporting Month
Emissions (kg/quarter)
January
27.23
April
26.76
July
37.41
October
55.41
Total Annual Emissions
146.81
Standard
Compliant
Year
2024
Pollution Source (Process)
Volatile Organic Compounds
Reporting Month
Emissions (kg/quarter)
January
72.7
April
71.75
July
54.94
October
48.78
Total Annual Emissions
248.17
Standard
Compliant
Year
2025
Pollution Source (Process)
Volatile Organic Compounds
Reporting Month
Emissions (kg/quarter)
January
65.71
April
76.79
July
79.33
October
95.19
Total Annual Emissions
317.02
Standard
Compliant
Description
Description
Emissions are below the fee collection threshold; therefore, no payment is required. However, reporting is still required.
Noise Control and Improvement
Year
Monitoring Point
Actual Monitoring Data
Daytime Value
Evening Value
Nighttime Value
Unit: dB(A)
Result
Year
2023
Monitoring Point
Rear entrance/exit of the Precision Manufacturing Building
Actual Monitoring Data
Daytime Value
Evening Value
Nighttime Value
55.1
49.9
44.7
Unit: dB(A)
Result
Compliant
Monitoring Point
Material Section I
Actual Monitoring Data
Daytime Value
Evening Value
Nighttime Value
63.2
59.5
53.0
Unit: dB(A)
Result
Non-compliant
Monitoring Point
End of Lane 209 outside the Company
Actual Monitoring Data
Daytime Value
Evening Value
Nighttime Value
56.2
52.0
46.5
Unit: dB(A)
Result
Compliant
Year
2024
Monitoring Point
Rear entrance/exit of the Precision Manufacturing Building
Actual Monitoring Data
Daytime Value
Evening Value
Nighttime Value
56.2
49.9
45.2
Unit: dB(A)
Result
Compliant
Monitoring Point
Smoking area of Materials Section I
Actual Monitoring Data
Daytime Value
Evening Value
Nighttime Value
61.8
57.1
46.0
Unit: dB(A)
Result
Non-compliant
Monitoring Point
End of Lane 209 outside the Company
Actual Monitoring Data
Daytime Value
Evening Value
Nighttime Value
54.8
49.8
46.0
Unit: dB(A)
Result
Compliant
Year
2025
Monitoring Point
Rear entrance/exit of the Precision Manufacturing Building
Actual Monitoring Data
Daytime Value
Evening Value
Nighttime Value
54.9
50.7
45.4
Unit: dB(A)
Result
Compliant
Monitoring Point
Pallet receiving area near the Precision Manufacturing Building
Actual Monitoring Data
Daytime Value
Evening Value
Nighttime Value
55.5
49.7
44.8
Unit: dB(A)
Result
Compliant
Monitoring Point
Area near the maintenance office of the Precision Manufacturing Building
Actual Monitoring Data
Daytime Value
Evening Value
Nighttime Value
62.8
62.0
60.2
Unit: dB(A)
Result
Non-compliant
Regulatory Standard (Category 2 Noise Control Zone)
Daytime Value
Evening Value
Nighttime Value
60
55
50
Description of Abnormal Noise Monitoring Results
Most of the Company’s annual noise monitoring results complied with regulatory standards, while a small number of monitoring points showed temporary exceedances. Based on the analysis, the exceedances were mainly attributable to traffic noise caused by building structure reflections, echoes in lanes, or temporary vehicle movements. These were short-term and non-continuous factors, and were not caused by in-plant equipment or production processes.
Improvements and Response Measures
Adjust operating hours: Avoid operations that may generate noise during evening and nighttime periods.
Improve the site environment: Evaluate the installation of sound-absorbing or soundproofing facilities in areas with stronger echoes.
Manage vehicle access: Require contractors to reduce idling and high-noise behavior.
Continue monitoring and tracking: Regularly review trends and implement necessary improvements based on the results.
Corporate Sustainability Development Survey
To achieve more effective communication with stakeholders who care about our company,we sincerely invite you to take the time to complete this questionnaire.
Your participation will enable us to gain a better understanding of the issues that stakeholders are concerned about and enable us to respond actively.