1.1 Company Profile

Chia Pang Plastics Co., Ltd. (hereinafter referred to as "Chia Pang" or "the Company") was founded in 1997 and is headquartered in Daya District, Taichung. The Company is a specialized distributor with over 28 years of expertise in industrial plastic piping.

The Company's core business is the sale and technical service of acid- and alkali-resistant plastic pipes, fittings, and valves. Its product portfolio spans UPVC, CPVC, PP, PVDF, PTFE, and PFA in both rigid and flexible forms, with applications across the semiconductor, electronics manufacturing, seawater desalination, chemical, and municipal water industries. Major customers include TSMC, CTCI Corporation, and ASE Technology Holding — benchmark enterprises with rigorous supply-chain sustainability requirements.

As of the base year of this report (2025), Chia Pang has 19 employees across three offices and warehouse sites in Taichung, Tainan, and Kaohsiung. Its service network covers Taiwan's major science parks, industrial parks, and seawater desalination plants.

1.2 Sustainability Philosophy and Corporate Culture

B Corp Certification

In 2016, Chia Pang earned international B Corp Certification, becoming one of Taiwan's early traditional-industry pioneers in adopting this framework. The certification requires a company to meet rigorous standards across five dimensions: social responsibility, environmental sustainability, corporate governance, worker care, and customer impact. Chia Pang passed B Corp Recertification in 2025, achieving a B Impact Assessment score of 83.1 — above the 80-point certification threshold and well ahead of the typical baseline of approximately 50.9. The full assessment is published on the B Lab Global Directory. We believe a good company can deliver returns to shareholders, well-being to its employees, and benefit to the planet — all at the same time.

Adoption of the Four-Day Workweek

In late 2023, Chia Pang became one of the early adopters of the four-day workweek, applying the internationally recognized "100-80-100" model — 100% pay, 80% hours, 100% productivity goal. Weekly working hours were reduced from 40 to 32 while maintaining the same compensation and the same level of productivity, putting the Company's commitment to employee well-being into practice through its work structure. We believe that only a company that genuinely takes care of its people has earned the right to speak about contributing to the wider world.

Empathy × Human-Centered Culture

Chia Pang's day-to-day operations are built on a human-centered culture grounded in empathy. Whether dealing with customers, suppliers, or colleagues, the Company approaches every relationship with empathy and treats long-term trust as its most valuable asset. This culture extends to how the Company views the environment — extending empathy to the planet is the fundamental motivation behind this GHG inventory.

1.3 Supply Chain Sustainability Responsibility

Chia Pang's major customers include TSMC, CTCI Corporation, and ASE Technology Holding, all enterprises with established positions in international supply chains. At present, these customers' sustainability requirements for small and medium-sized suppliers remain at the level of "asking whether an inventory has been completed and, if so, requesting Category 1 and Category 2 data," without yet mandating a full report or third-party verification.

As a B Corp, however, Chia Pang chooses to stay ahead of customer requirements. From 2025, the Company has voluntarily launched a GHG inventory aligned with the full ISO 14064-1:2018 framework, covering Categories 1 through 4, with complete disclosure through this report. In addition, Chia Pang publicly signed its climate commitment on the SME Climate Hub in 2026, joining more than 100,000 small and medium-sized enterprises worldwide in the net zero movement. The Company has formally committed to achieving net zero emissions before 2050 and continues to advance its decarbonization roadmap. For Chia Pang, sustainability is not an assignment from customers but a voluntary expression of corporate culture.

1.4 Policy Statement from the Responsible Person

1.5 Report Preparation Lead

This report has been prepared in accordance with ISO 14064-1:2018 — Greenhouse gases — Part 1: Specification with guidance at the organization level for quantification and reporting of greenhouse gas emissions and removals. The inventory scope covers Category 1 (direct emissions), Category 2 (indirect emissions from imported energy), and Categories 3 through 6 (other indirect emissions).

This report has been led and prepared by the following personnel responsible for inventory coordination and report compilation:

2.1 Organizational Boundary

This report applies the Operational Control Approach to set the organizational boundary. Any facility or activity over which the Company exercises full operational control is included in the scope of this inventory. The Company is a standalone legal entity with no subsidiaries, joint ventures, or affiliated entities; its organizational boundary is therefore identical to its overall operational scope.

Although the Company leases its three warehouse facilities, it exercises full control over each site's day-to-day operations, equipment maintenance, electricity management, and personnel activities, and bears the energy costs directly. These conditions satisfy the operational control criteria as defined under ISO 14064-1:2018.

2.2 Geographic Boundary (Inventory Sites)

2.3 Operational Boundary (Emissions Scope)

The operational boundary of this inventory covers Categories 1 through 4. Emission sources in each category are summarized below:

Exclusion of Categories 5 and 6: As a pure distribution company with no manufacturing or processing operations, Chia Pang has assessed and identified no material emission sources within Category 5 (indirect emissions from the use of products from the organization) or Category 6 (other indirect emissions). These categories are therefore excluded from this inventory.

2.4 Materiality Criteria for Emission Sources

This inventory applies two materiality thresholds: a quantitative threshold (any single emission source ≥ 1% of total emissions is treated as material) and management relevance (sources below the quantitative threshold are still included if they hold management significance or are of interest to stakeholders). Sources assessed as immaterial and without management significance are excluded with a documented rationale, while an equipment inventory is maintained for verification purposes.

2.5 Reporting Period

3.1 Calculation Methodology and Reference Standards

This GHG inventory is prepared in accordance with ISO 14064-1:2018. Emissions are quantified using the following general formula:

3.1.1 Management of Global Warming Potential (GWP) Values

All GWP values in this report use the IPCC Sixth Assessment Report (AR6). The table below lists the greenhouse gases and refrigerants relevant to the Company's inventory, with their corresponding GWP values and an indication of whether each was used in this inventory:

3.2 Category 1: Direct GHG Emissions

This category covers Section 1.3 mobile emissions from company vehicles; Section 1.4.1 refrigerants; Section 1.4.2 septic tanks; and Section 1.4.3 fugitive emissions from fire extinguishers. The quantification methodology and activity data for each sub-category are summarized below:

Notes: (1) The — symbol indicates that the site does not use air conditioning containing the specified refrigerant. (2) R-600a is inventoried but not quantified because the IPCC has not published a GWP value for it. (3) ABC dry powder fire extinguishers produce no GHG fugitive emissions in practice and are therefore inventoried but not quantified.

3.3 Category 2: Indirect GHG Emissions from Imported Energy

This category covers Section 2.1 purchased electricity, applying the 2024 grid electricity emission factor published by Taiwan's Ministry of Environment. The quantification methodology and activity data are summarized below:

Note: No items in this category are inventoried-but-not-quantified.

3.4 Category 3: Indirect GHG Emissions from Transportation

This category covers Section 3.1 upstream transportation; Section 3.2 business travel; Section 3.3 employee commuting; and Section 3.4 downstream transportation. The quantification methodology and activity data for each sub-category are summarized below:

Note: The — symbol indicates that no employee at this site commutes by the specified mode of transport.

3.5 Category 4: Indirect GHG Emissions from Products Used by the Organization

This category covers four sub-categories: Section 4.1 purchased goods; Section 4.3.1 upstream electricity; Section 4.3.2 upstream tap water; and Section 4.4 operational waste. Combined emissions total 1,718.2480 tCO₂e (93.56% of total emissions). Section 4.1 purchased goods is the single largest emission source in this inventory, with 1,715.9960 tCO₂e (93.44% of total emissions).

3.5.1 Category 4: Section 4.1 Purchased Goods — Largest Emission Source in This Inventory

Methodology applied: As an industrial wholesale distributor with no manufacturing processes, and given that upstream suppliers have not yet completed Product Carbon Footprint (PCF) inventories, the Company follows the GHG Protocol Technical Guidance for Calculating Scope 3 Emissions and applies the Spend-based Method to estimate emissions from purchased goods in fiscal year 2025.

Emission factor: The factor used is from Supply Chain Greenhouse Gas Emission Factors v1.3 by NAICS-6 (NAICS 326122 Plastic Pipe and Pipe Fitting Manufacturing, SEF+MEF version with distribution margins): 0.351 kg CO₂e / USD.

Exchange rate: The Company applies the 2025 yearly average TWD-to-USD exchange rate published by the U.S. IRS: 31.167 TWD/USD.

Methodology limitations: (1) The EPA supply chain emission factors reflect U.S. averages; Asian suppliers typically have higher actual carbon intensity, so this estimate is directionally conservative (a likely underestimate). (2) The Spend-based Method is a Tier 1 approach, less precise than activity-based methods (Tier 2/3). The Company plans to engage suppliers in completing PCF or LCA studies to upgrade the methodology in future inventories.

3.5.2 Category 4: Sections 4.3 / 4.4 Other Indirect Emissions

This sub-section covers Section 4.3.1 upstream electricity; Section 4.3.2 upstream tap water; and Section 4.4 operational waste. The quantification methodology and activity data for each sub-category are summarized below:

Note: No items in this category are inventoried-but-not-quantified.

4.1 Annual Total Emissions

4.2 Emissions by Category

4.3 The Seven Greenhouse Gases

4.3.1 Category 1: The Seven Greenhouse Gases

4.4 Direct Emission Sources

4.5 Top Ten Activities by Emissions

4.6 Summary — Key Observations

5.1 Data Management Principles

5.2 Activity Data Sources by Emission Source

The Company gives priority to traceable original documents (invoices, bills). Where such documents are not directly available, equipment nameplates, survey forms, or reasonable estimates are used.

5.3 Quantitative Data Quality Scoring

This section adopts a three-dimensional scoring framework (A1 activity data, A2 instrument calibration, A3 emission factor), drawn from the GHG Protocol Data Quality Indicator and Taiwan's Ministry of Environment Guidelines for Greenhouse Gas Emissions Inventory Operations. Each emission source is scored, weighted by its share of emissions, and aggregated to yield a quality grade for the inventory.

5.3.1 Scoring Framework

Each dimension is scored from 1 to 3 (lower scores indicate higher quality). The score for each source is A1 × A2 × A3 (range 1 to 27). The inventory score is Σ (source score × source share of emissions).

Score-to-grade mapping:

5.3.2 Scores by Emission Source

5.3.3 Inventory Grade Conclusion

The weighted total score for this inventory is 17.97, which falls within the 10–18 range. The inventory is therefore graded "Grade 2" (medium quality, reliable).

Dominant factor: Section 4.1 purchased goods alone contributes 16.82 points (93.6% of the inventory score). Its dimension scores are A1=3 (purchase value converted to emissions via the Spend-based Method), A2=2 (accounting documents are traceable), and A3=3 (national-average factors from U.S. EPA Supply Chain Factors). While this source is Grade 2 in isolation, its dominant share effectively determines the overall inventory grade.

High-quality sub-items: Section 2.1 purchased electricity, Section 4.3.1 upstream electricity, Section 4.3.2 upstream water supply, and Section 3.2 business travel are all Grade 1, but their combined share is only 1.4%, so their effect on the overall inventory score is limited.

Data-quality-limited sub-items: Section 1.4.1 refrigerants; Sections 3.1 and 3.4 upstream and downstream transportation; Section 3.3 employee commuting; and Section 1.4.2 septic tanks are all Grade 3 (27 points), primarily because activity data require estimation, no measurement instruments are calibrated, and national-average factors are used. Given the Company's nature (a pure distribution business with no process-measurement equipment), these sub-items cannot easily be upgraded in the short term.

Upgrade roadmap: Beginning in 2026, the Company plans to gradually introduce Tier 2/3 emission factors for Section 4.1 purchased goods (by requesting actual carbon footprint data or third-party-verified factors from major suppliers), with the goal of upgrading the inventory to Grade 1 by 2030.

6.1 Selection of the Base Year

The Company has selected 2025 as the base year for its first GHG inventory. The rationale: this is the first comprehensive inventory; data traceability is complete; current operational structure is properly reflected; and it aligns with the starting point of the Company's international commitment via the SME Climate Hub.

Base-year emissions and intensity baseline

6.2 Triggers for Base-Year Recalculation

In accordance with ISO 14064-1:2018, the Company has defined triggers for base-year recalculation, with a significance threshold set at 3%. The base-year emissions will be recalculated whenever any of the following occurs:

• A structural change to the reporting or organizational boundary (i.e., a merger, acquisition, or divestiture / asset sale)
• A change in calculation methodology or emission factors
• The discovery of an error, or a cumulative set of errors, whose aggregate effect is material

When any of these conditions is met, the adjustment and its rationale will be disclosed clearly in that year's report. Year-on-year emission differences caused solely by natural fluctuations in business volume (e.g., changes in order intake) are excluded from this trigger. None of the above conditions has occurred to date, so the base year remains 2025.

6.3 Reduction Target Setting

The Company adopts the global commitment of the SME Climate Hub as the framework for its reduction targets. The SME Climate Hub is an official partner of the Race to Zero campaign under the UNFCCC High Level Champions. In Taiwan, this initiative is introduced locally by the Vision Project Foundation, with enterprises such as TSMC and SinoPac Holdings listed as co-advocacy partners.

As a supplier to TSMC, Chia Pang Plastics has formally adopted the three commitments of the SME Climate Commitment:

The Company expresses these commitments domestically through emissions intensity per unit of revenue as its primary local indicator:

Policy statement on the use of an intensity-based indicator

1. Business growth and sustainability should advance together: as a growing SME distributor, business expansion naturally raises absolute emissions. A target framed in absolute terms could create perverse incentives to "reduce emissions by reducing service".
2. A falling intensity is true decarbonization: a decline in emissions per unit of economic output is the genuine indicator of operational efficiency and low-carbon transition.
3. B Corp principle: sustainability commitments should not be in tension with business growth — they should reinforce each other.

6.3.1 Alignment with Taiwan NDC 3.0 and International Reduction Frameworks

On 3 November 2025, Taiwan's Executive Yuan approved Nationally Determined Contributions (NDC) 3.0 (Chinese only), setting reduction milestones for 2030, 2032, and 2035, and reaffirming the 2050 net-zero target. Although Chia Pang Plastics is not subject to mandatory inventory under the Climate Change Response Act (its emissions are only 0.33% of the mandatory threshold), the Company voluntarily aligns its timeline with national policy as part of its B Corp ethos, echoing the rhythm of Taiwan's sustainability transition.

Alignment of Chia Pang's commitment with the NDC 3.0 timeline

Note on indicator difference: NDC 3.0 targets absolute national reductions, whereas Chia Pang adopts emissions intensity per unit of revenue as its primary local indicator (per the policy statement in Section 6.3). The two use different baselines (2005 vs. 2025) and different measurement bases (absolute vs. intensity), so direct numerical alignment is not possible. The significance of this table is timeline alignment — Chia Pang's 2030 and 2050 commitments are synchronized with national policy on a time-axis basis, and under steady business conditions a halving in intensity would translate into absolute reductions roughly matching the national pathway.

Methodological reference to international reduction frameworks

During target design, the Company referenced the methodological principles of the Science Based Targets initiative (SBTi) — including base-year comparison, the distinction between near-term and long-term targets, Scope 3 disclosure obligations, and the requirement that net zero combine absolute reductions with offsetting. References to SBTi in this chapter are methodological only; the Company has not submitted an SBTi application and makes no claim of SBTi alignment.

Significance for downstream customers: For Chia Pang as a publicly committed signatory to the SME Climate Hub, this voluntary alignment with NDC 3.0 reflects the Company's posture of staying ahead of customer requirements. As customers raise their supply-chain sustainability expectations in the future, the Company is already positioned to meet them on schedule.

6.4 Progress Tracking and Management Responsibility

Reduction progress is tracked continuously through four mechanisms: an annual inventory and disclosure, annual progress uploads to the SME Climate Hub, internal review meetings, and rolling target adjustment. These activities are coordinated by the Report Preparation Lead, who reports periodically to the Responsible Person.

7.1 Inventory Organization and Division of Responsibilities

Given the Company's compact size (19 employees), the inventory is conducted under a whole-team collaborative model.

7.1.1 Responsibility Matrix

7.1.2 External Support

7.2 Standard Operating Procedure (SOP) for Data Collection

7.3 Internal Review Mechanism

If major customers or supply-chain ESG policies require external verification in the future, the Company retains the flexibility to initiate it.

7.4 Document and Records Management

Inventory documents are organized into four categories: original documents (invoices, bills, etc.); survey forms (commuting surveys, equipment inventories, etc.); calculation workpapers (DCarbon system outputs); and the report itself. All documents are retained for at least five years and are managed by the Report Preparation Lead.

8.1 Verification Approach

This is the Company's first GHG inventory report. To date, major customers (TSMC, CTCI Corporation, and others) ask only whether small and medium-sized suppliers have completed an inventory and, if so, request Category 1 and Category 2 data. They have not yet required a full report or external verification.

8.2 Rationale for Not Conducting External Verification

1. Resource prioritization: for a first-year inventory, resources are best directed toward establishing data-collection mechanisms and SOPs.
2. Data maturity: parts of the data still rely on estimation; engaging external verification will yield greater value once data quality has improved.

8.3 Internal Verification Results

8.3.1 Scope of Verification

The verification scope covers five dimensions: organizational and geographic boundaries (all three warehouses included); emission source identification (every identified emission source across Categories 1 through 4); activity data (original documents, survey forms, and system-imported data); calculation methodology (the emission factors and GWP values applied within the DCarbon system); and emissions aggregation (the seven-GHG breakdown, the per-category summary, and the emissions intensity indicator).

8.3.2 Verifiers and Their Independence

Internal verification follows the three-level structure described in Chapter 7 Section 7.3: Level 1 — peer review, conducted cross-team to avoid self-review; Level 2 — Administration Department review, conducted by the Report Preparation Lead and kept separate from those collecting the data; Level 3 — Responsible Person approval, conducted by the Company's Responsible Person independently of the report authors as the final decision.

8.3.3 Findings and Remediation

8.4 Internal Verification Statement

8.5 Plans for Future External Verification

9.1 Core Principles of the Reduction Strategy

The Company's reduction strategy rests on three core principles: start with the hotspots (target the largest emission sources first); efficiency first, then substitution, then offsets (prioritize energy efficiency → low-carbon substitution → offsets only as a last resort); and integrated with the core business (reduction measures must be compatible with the nature of a logistics-and-distribution business). The Company does not pursue decarbonization for its own sake; it pursues decarbonization in service of a better business model.

9.2 Reduction and Sustainability Measures Already Implemented

9.2.1 The Four-Day Workweek — Indirect Decarbonization and Human-Centered Care Together

Chia Pang was among the early adopters of the four-day workweek. Employee commuting days dropped from 5 to 4, theoretically reducing commuting emissions by approximately 20%. With one less operating day per week, electricity consumption for office lighting, air conditioning, and equipment fell accordingly. Happier employees, lighter footprint on the planet.

9.2.2 Delivery Route Optimization Across the Three Warehouses

Deliveries are dispatched from the warehouse closest to the customer; routes are consolidated to avoid multiple empty trips per day; and delivery scheduling is coordinated with freight carriers to improve vehicle-utilization efficiency.

9.2.3 Energy-Efficient Lighting and Equipment

All three warehouses are progressively replacing conventional lighting with LED lighting, and procurement of refrigerators, air conditioning, and other equipment prioritizes models bearing the energy-efficiency label.

9.3 Reduction Priorities Anchored on Emission Hotspots

The real reduction battleground is upstream in the supply chain (Section 4.1 purchased goods). A 1% improvement here (approximately 17.1600 tCO₂e) reduces absolute emissions by an amount that far exceeds the effect of a comprehensive reduction across the Company's own operations.

9.4 Planned Reduction Measures (Through ~2030)

9.4.1 Gradual Improvement of Supply-Chain Procurement — Targeting the Largest Source

Target: Category 4 Section 4.1 purchased goods (93.44% of total emissions)

• Participate in customer supply-chain decarbonization initiatives (such as those led by TSMC and CTCI Corporation)
• Encourage major suppliers to complete their own carbon footprint inventories
• Establish a decarbonization dialogue: hold reduction-focused exchange sessions with major suppliers and stay engaged with their reduction roadmaps

Expected impact: If upstream suppliers can reduce their carbon intensity by 10%, this single lever would cut 171.6000 tCO₂e, equivalent to 1.45 times the Company's own operational emissions.

9.4.2 Electrification of Company Vehicles

Target: Category 1 Section 1.3 fuel for company vehicles (2.64% of total emissions). As gasoline vans and diesel trucks approach the end of their service lives, EV alternatives will be prioritized; charging infrastructure across the three warehouses will be developed in parallel; and driver-behavior training will be promoted during the transition.

9.4.3 Upgrading Refrigerant Equipment Management

Target: Category 1 Section 1.4.1 refrigerant equipment (1.28% of total emissions). The Company will institute an annual inspection program and, when equipment is replaced, give preference to low-GWP refrigerants (per IPCC AR6: R-32 has a GWP of 771, approximately 66% lower than R-410A at 2,256).

9.5 Customer Value Linkage and Management Responsibility

• Comprehensive disclosure: all 13 emission sources across Categories 1 through 4 are included, with Section 4.1 purchased goods estimated under the Spend-based Method.
• Differentiating value: whereas most SMEs either disclose nothing or disclose only Categories 1 and 2, this report's comprehensiveness is itself a point of differentiation.
• Customer alignment: positions the Company to respond to the supply-chain sustainability procurement and Scope 3 disclosure requirements of semiconductor customers and large EPC (engineering, procurement, and construction) customers.

10.1 Purpose of This Report

This is the Company's first GHG inventory report prepared in accordance with ISO 14064-1:2018, with four purposes: internal management (establishing an emissions baseline); external communication (a reference for major customers and stakeholders); commitment fulfillment (meeting the SME Climate Hub annual public-disclosure obligation); and B Corp practice (giving effect to the Company's environmental responsibility).

10.2 Report Scope Summary

10.3 Report Structure

10.4 Publication and Communication

This report is released in three ways: web edition, PDF edition, and upload to the SME Climate Hub platform.

10.5 Version History

10.6 Standards and Methodologies Referenced

10.6.1 International Standards

• ISO 14064-1:2018 — Greenhouse gases — Part 1: Specification with guidance at the organization level for quantification and reporting of greenhouse gas emissions and removals
• GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard (Chapter 8: Purchased Goods and Services)
• GHG Protocol Technical Guidance for Calculating Scope 3 Emissions
• IPCC Global Warming Potential Values (2024) — a reference table of GHG GWP values, drawing on AR4, AR5, and AR6
• IPCC Guidelines for National Greenhouse Gas Inventories — methodological reference for septic tanks, waste, and related categories

10.6.2 Domestic Regulations

• Climate Change Response Act (Chinese only) — Article 21 and the designated emission sources announced by the Ministry of Environment. The mandatory inventory threshold is 25,000 tCO₂e per year. The Company's emissions are far below this threshold; this inventory is therefore voluntary.
• Ministry of Environment of the Republic of China, Guidelines for the Quantification of GHG Emissions (latest official version)
• Ministry of Environment of the Republic of China, Greenhouse Gas Emission Factors — historical grid electricity emission factors
• Ministry of Environment GHG Emissions Information Platform (Chinese only) — public lookup of emissions from mandatory-inventory enterprises

10.6.3 International Initiative Frameworks

• SME Climate Hub climate-commitment platform for SMEs — the Taiwan local contact is the Vision Project Foundation (Chinese only)
• Science Based Targets initiative (SBTi) — referenced for target-setting methodology only; the Company has not submitted an SBTi application

10.6.4 Tools and Databases

• DCarbon GHG Inventory System
• U.S. EPA Supply Chain GHG Emission Factors v1.3
• U.S. IRS Yearly Average Currency Exchange Rates
• Taiwan High Speed Rail Carbon Footprint (Chinese only) — segment-level emission factors for the high-speed rail
• ICAO Carbon Emissions Calculator — emission factors for international flights

10.7 Contact Information

10.8 Closing Remarks

This concludes the Chia Pang Plastics 2025 GHG Inventory Report. This is not the destination of the Company's sustainability journey — it is the first verifiable starting point.

• An honest inventory every year, and an honest disclosure every year
• Start with the hotspots; pursue reductions pragmatically
• Stay ahead of customer requirements; demonstrate the sustainability power of SMEs

In an era of climate change, a good company does not merely pursue growth — it pursues growth that makes more sense. With this report, Chia Pang demonstrates to all stakeholders that business and sustainability have never had to be an either-or choice.

— End of Report —