KAORI Unveils 2023 Sustainability Report with Third-Party Assurance

To keep in line with the international sustainability trend, Kaori Heat Treatment Co., Ltd. (8996. TW), is proud to announce the release of its 2023 Sustainability Report, which an independent third party has verified. This milestone underscores KAORI's unwavering commitment to transparency and accountability in its sustainability efforts. Kaori has voluntarily issued the "2023 ESG Sustainability Report" in compliance with the Global Reporting Initiative's Sustainability Reporting Guidelines (GRI Standards), the Sustainable Development Conference Standards Board Index "Electrical and Electronic Equipment Industry" (SASB), and comply with the Climate-related Financial Disclosure (TCFD) task force structure for information disclosure. Continuously communicate ESG (environmental, social, and governance)-oriented strategies, actions, and results to stakeholders.

Over the past year, with the expansion of artificial intelligence (AI) applications, particularly in cloud and edge computing, the demand for cooling technology has continued to increase. From the perspective of sustainable development, Kaori has been considering how to achieve high-performance computing while reducing energy consumption and environmental impact. Whether it is designing more energy-efficient cooling systems, exploring the use of renewable energy for power supply, or recycling waste heat, these practices are critical factors in promoting the sustainable development of the AI industry. We are continually striving to reduce environmental impact. 

On the road to global climate change and energy transformation, we focus on four main pillars: "Low Carbon and Emission Reduction, Green Products, People-Oriented, and Sustainable Management", and have taken concrete actions aligned with our core values of "Innovation, Quality, Responsibility, and Honor." We are deeply proud of the overall performance of our team.

The following are the highlights of sustainability promotion performance in 2023:

Environmental （E）

• The world's first plate heat exchanger manufacturer to receive a dual certification of ISO 14064-1 for Greenhouse Gas Inventory and ISO 14067 for Carbon Footprint in response to the challenge of international carbon tariffs. 
• The Taiwan plants have completed the greenhouse gas inventory for three consecutive years, with plans to complete the inventory for the subsidiary in Ningbo by 2024. 
• Terminated the production of high-carbon emitting equipment and reduced natural gas usage, significantly reducing the carbon intensity from 2022. 
• Digitized energy-saving processes by installing smart meters on main production equipment, achieving an installation rate of 80%. 
• Expanded renewable energy with green electricity, installing 744.51KW at the Kaohsiung Plant and completing a feasibility assessment at the Zhongli Plant.

Social（S）

•  Actively promoted human rights policies and measures, with plans to conduct third-party human rights due diligence in 2024 to foster a diverse, equal, and inclusive workplace culture. 
• Passed the ISO 45001 Occupational Health and Safety Management Systems certification. Through systematic occupational safety and health management, we are committed to continuous improvement and to moving toward the goal of zero occupational accidents. 
• We value the physical and mental well-being of our employees and their emergency response skills. Over 70% of our employees in all the Zhongli Plants have completed the CPR+AED emergency response training, successfully obtaining the AED Safe Place certification from the Ministry of Health and Welfare and the Department of Public Health, Taoyuan as a safe place.

Governance（G）

•  In accordance with the Company's management policies, we continue to improve the quality and effectiveness of corporate governance. 
• All suppliers have signed the code of conduct, achieving a 100% completion rate. 
• Passed the third-party certification for the ISO 27000:2022 Cybersecurity Management Systems certification.

Kaori plans to take its sustainability efforts to the next level in 2024 by adopting the sustainable spirit of "For Earth. For Us." These sustainability efforts will revolve around five main themes: product/service innovation, low-carbon transformation of key processes, advancement of risk control, diversified workplace, and resilient cybersecurity. The Company plans to implement these themes by maintaining good communication with stakeholders, staying abreast of international sustainability trends, and observing the United Nation's Sustainable Development Goals (SDGs). We firmly believe that when the ESG spirit is integrated into our daily operations, we can successfully uphold our goals of "business integrity, effective corporate governance, cherishing the green earth, fulfilling social responsibilities, and pursuing sustainable development."