We are fully aware that climate change risks are among the biggest risks facing the world. We have paid continuous attention to the trend of global climate change. Considering the risks and opportunities brought by global climate change, during the Reporting Period, the Group reversed the trend of rising greenhouse gas emissions by proposing measures such as optimizing energy structure and enhancing energy efficiency. In addition, the Group has formulated its own carbon peak and carbon neutrality targets together with greenhouse gas emission reduction target to actively respond to China’s goal of “strive to achieve carbon peaking by 2030 and carbon neutrality by 2060”.

During the Reporting Period, with reference to the recommendations of the Task Force on Climate-related Financial Disclosures (“TCFD”) established by the Financial Stability Board (“FSB”), we have implemented the following measures to combat climate change:

• Incorporating the environment, climate and energy management and control into the long-term development strategy of the Company, paying continuous attention to, collecting issues related to the environment and climate, and reporting to the Audit Committee regularly;
• Setting the target of “achieving carbon peaking by 2028 and carbon neutrality by 2058”;
• Enhancing waste monitoring, disposal compliance and discharge of waste and encouraging suppliers to use recyclable packaging materials;
• Increasing the consumption ratio of green energy, developing and promoting suppliers to use green energy;
• Increasing the energy consumption efficiency and enhancing energy management and control capability of each business segment and functional department; and
• Encouraging the business segments to actively improve their production processes and enhance the consumption efficiency of resources.

Sunny Opotech also formulated the Administrative Policies on Greenhouse Gases (《溫室氣體管理制度》) to determine the responsible statistic departments, specific requirements, steps and procedures on the quantification of greenhouse gas emissions, to define the approach to reduce greenhouse gas emission.
As the Group is easily affected by the concentrated rainfall and local flood season due to its geographical location, we regard flood as one of the major climate change risks possibly encountered during the production and operation.The Group has formulated the Procedures on Emergency Preparation, Response and Control (《應急準備和響應控制程序》) to ensure accurate, rapid, and timely responses to possible extreme weather or other emergencies. We have set up isolation belts in the production areas and optimized the drainage system. Meanwhile, we have formulated the Working Handbook on Preventing Flood and Typhoon (《防汛防颱工作手冊》) to specify the steps of the Group’s work on prevention of flood and typhoon:

Routine management: Monitoring weather information, maintaining drainage pipeline, managing emergency supply, etc.;
Alarming management: Releasing alarming information, preparing disaster relief materials, inspecting hidden dangers, etc.;
Emergency management: Establishing the emergency response task force to conduct relevant emergency work; and
Subsequent management: Conducting post-disaster assessment and summary, inspecting and maintaining equipment, etc.

Four subsidiaries of the Company namely Sunny Zhejiang Optics, Sunny Opotech, Sunny Automotive Optech and Sunny Optical Intelligence (Yuyao) have formulated the Typhoon Emergency Plan(《颱風應急預案》) and established an emergency working group for typhoon and flood prevention to be fully responsible for the emergency commanding, organizing, and coordinating work of typhoon disasters. Meanwhile, an evacuation guidance group, emergency repair group and other working groups have been established to be fully responsible for the specific implementation of each work. The emergency measures of the plan cover the handling proposal before, during and after the typhoon, specify the operation requirements of emergency measures to ensure that the fight against typhoon is carried out in an orderly manner. Prior to the arrival of typhoon “Muifa”, Sunny Automotive Optech organized a typhoon tabletop exercise in September 2022 to demonstrate the practicality of the Typhoon Emergency Plan (《颱風應急預案》) through a rehearsal. Apart from introducing relevant policies and documents, we have also invested more in hardware facilities, such as setting up isolation zones within the plant and optimizing the drainage system. During the Reporting Period, there was no significant climate-related issues which have impacted the Group.


In order to carry out emergency response work in a timely, efficient and orderly manner, including those caused by climate disasters, we issued the Emergency Management Measures for Public Safety Emergencies (《突發公共安全事件應急管理辦法》) during the year to establish emergency response organizations and their responsibilities, improve the prevention and early warning mechanism for various production and operation activities, and the response mechanism after the occurrence of safety incidents. All these efforts aim to prevent and minimize emergencies and the damage they cause and to protect the health and property of employees.