LCY Receives CDP A and A- Ratings　Underscoring Continued Progress in Sustainability Governance

LCY receives the CDP Water Security rating of A (leadership-level).

LCY Chemical Corp. (hereinafter "LCY") continues to advance its net-zero transition and sustainability initiatives. In the latest 2025 ratings released by CDP (Carbon Disclosure Project), one of the world's most authoritative climate assessment organizations, LCY achieved an A- rating in Climate Change and an A rating in Water Security, with both categories upgraded to Leadership level. The assessment covered LCY's global operations, reflecting performance across all sites and highlighting the company's established, cross-regional, replicable, and institutionalized governance capabilities in carbon and water resource management.

Mr. Chin-Chou Lin, Vice President of Operations of LCY, stated: "Achieving Leadership-level ratings of A- in Climate Change and A in Water Security from CDP is the strongest testament to LCY's long-term investment in sustainability. Delivering on our carbon reduction commitments is the cornerstone of our sustainability transformation. We continue to advance decarbonization through a steady and systematic approach and have already made tangible progress, while moving toward our long-term goals of a 42% carbon reduction by 2030 and net-zero emissions by 2050.”

Starting from its own operations, LCY continuously optimizes manufacturing processes and energy efficiency. Following its recognition as a CDP Supplier Engagement Leader (A rating) in mid-2025, LCY continues to regard its supply chain as a key partner and is progressively extending its decarbonization impact across the entire value chain. Through external third-party assessments, the company will keep strengthening its governance framework and enhancing long-term, actionable sustainability capabilities.

In the 2025 CDP (Carbon Disclosure Project) assessment, a total of 22,100 companies worldwide participated. LCY demonstrated mature and consistent management performance in both Climate Change and Water Management, covering governance frameworks, disclosure of risks and opportunities, policy and system development, and value-chain engagement. Within the 16 climate change assessment indicators, LCY achieved A or A- ratings in 12 categories. In Water Security, 7 out of 11 indicators received A or A- Leadership-level scores.

LCY Retains MVGX Platinum Rating and Receives Disclosure Certification of CRIF Taiwan

Beyond CDP ratings, LCY's decarbonization and sustainability achievements continue to gain broad recognition. In the MVGX Carbon Neutrality Progress Rating, LCY once again retained Platinum status, ranking among the top 10% of evaluated companies. In addition, LCY again achieved an overall A rating in the Sustainability Disclosure Certification conducted by the CRIF Taiwan, demonstrating consistent and outstanding sustainability performance within Taiwan's local governance and financial ecosystem.

According to LCY's latest 2024 Sustainability Report, the company has continued to strengthen its greenhouse gas (GHG) management framework. For Scope 1 and Scope 2 emissions, LCY has reduced carbon emissions across its global operations through a comprehensive set of measures, including process optimization, thermal energy integration, replacement of energy-efficient equipment, reduction of exhaust gas emissions, and decreased fuel consumption. As a result, total global GHG emissions in 2024 were reduced by 32% compared with the baseline year of 2021, demonstrating tangible progress toward its decarbonization targets.

For Scope 3 emissions, LCY recognizes the supply chain as a critical lever for emissions reduction. The company has actively promoted the adoption of low-carbon feedstocks, certification of bio-based materials, and supplier energy-efficiency transitions. These initiatives aim to enhance the sustainability and resilience of the supply chain while systematically reducing indirect emissions across the value chain.

Looking ahead, LCY will continue to deepen its GHG management and water resource governance, further improving operational efficiency and energy performance. The company will also expand the application of low-carbon and bio-based materials through International Sustainability and Carbon Certification (ISCC Plus certification), strengthening traceability and internationally recognized certification mechanisms. By working closely with partners, LCY seeks to enhance the overall sustainability resilience of its value chain.

Guided by a science-driven and innovation-led approach, LCY will continue to explore opportunities across multiple domains—including materials science, biotechnology, and electronic materials—to accelerate the commercialization of sustainable applications. While supporting long-term business growth, the company aims to establish scalable and replicable pathways that contribute to the broader industry's transition toward a low-carbon and sustainable future.