In accordance with the "Weltrend Electronics Risk Management Policy and Procedures", the company is actively developing solutions to reduce the operational and financial impacts of climate change and effectively enhance the company's climate resilience. The Company stipulates that the short term is within 3 years, the medium term is 3-5 years, and the long term is more than 5 years to further evaluate the visible and potential impacts of climate change on the Company.

The company's operating locations are less affected by extreme climate change. The only thing we must pay attention to is the loss of working hours and production caused by heavy rains, which in turn affects operating income. The only consolation is that although the heavy rains have caused a reduction in related operating income, the period is short and temporary, and will not cause significant financial impact in the long run.

In addition, based on the climate attributes of the supply chain locations currently under investigation, supply chain responses are already prepared for the impact of climate change, especially the introduction of business continuity. Therefore, for the Company, the risk of supply interruption is relatively reduced.

The Company has developed a "Risk Management Policy and Procedure" in its Sustainability Development Group, which is applicable to the risk management identification, assessment and decision-making of various issues. Our company will adopt a multi-party argumentation method (brainstorming method) to identify the possible risks and opportunities of various topics, and keep an eye on market trends to update the risk content at any time. At the same time, our company uses quantitative methods to evaluate each risk and formulate corresponding countermeasures.

The scenario analysis conducted by our company refers to the basis for scenario analysis on the "Taiwan Climate Change Estimation and Adaptation Knowledge Platform" website. The website has detailed the analysis of various scenarios and has developed climate change estimation models for various parts of Taiwan, which clearly brings great convenience to our company in carrying out this task. The models currently used by our company are:

Currently, our company belongs to the IC design industry. The main sources of greenhouse gas emissions are indoor air conditioning and office lighting, both of which belong to "Scope 2" indirect energy emissions from electricity. The direct emissions from "Scope 1 " and other indirect emissions from "Scope 3" are quite small. Based on the current situation, the company's Scope 1 and Scope 2 emissions are still at a reasonable stage. We plan to strengthen our efforts to achieve a 3% carbon reduction per unit (thousand yuan) of revenue in 2016.