Sustainable Environment

PharmaEssentia Environmental Management Indicators

PharmaEssentia Climate Governance Organizations

Short-, Medium-, and Long-Term Climate Risks and Opportunities Matrix

Environmental Awareness, Training and Capacity Building

The Company continues to advance environmental management through education, training, and capacity building initiatives. The Executive Center for Corporate Sustainability collaborates with the Environmental Health and Safety Department to regularly conduct environmental awareness campaigns and training programs covering topics such as water resource conservation, water efficiency, environmental protection, and waste reduction, with the aim of enhancing employees’ environmental awareness and practical management capabilities.
In addition, the Company has adopted the strategic approach of cultivating green leadership talent and dedicated management professionals by promoting specialized training programs, including ISO 14064-1 Internal Auditor certification and carbon management in procurement. Through these initiatives, the Company continues to strengthen employees’ professional knowledge and competencies in greenhouse gas management, carbon management, and environmental sustainability, thereby enhancing overall environmental management capabilities and supporting the achievement of its sustainability objectives.

Climate-Related Management Incentives

To support the implementation of its sustainability strategy, the Company integrates sustainability objectives into its performance management framework and uses KPIs to encourage departments and employees to actively participate in sustainability initiatives, thereby continuously enhancing sustainability performance.

1. Sustainability Center KPIs

The Corporate Sustainability Center is responsible for implementing sustainable supply chain initiatives and engaging with stakeholders to advance ESG objectives across the value chain and key suppliers. The Center also supports community and environmental initiatives, including low-altitude forest conservation projects.

2. Environmental, Health & Safety (EHS) and Engineering KPIs

• In 2025, recycled water volumes reached 10.05 million liters, representing a 3.31% increase compared with 9.728 million liters in 2024. This achievement reflects the effectiveness of process wastewater recovery and reuse initiatives, including cooling water and scrubber wastewater recycling. The Company will continue to promote carbon reduction, water conservation, and other environmental performance indicators.
• The Taichung Plant's Energy Efficiency Leadership Program achieved electricity savings of 354,649 kWh in 2025, resulting in approximately 168.1 tCO₂e of carbon emission reductions.

3. Company-wide KPI Planning

The Company is currently evaluating how climate-related performance can be integrated into its compensation and incentive framework in alignment with its operational capabilities and long-term sustainability strategy.

To further strengthen sustainability governance, PharmaEssentia plans to gradually incorporate climate-related management indicators, such as carbon reduction target achievement and environmental management system enhancement, into the performance evaluation framework for senior management and key positions. The Company is also assessing the potential linkage of these indicators to incentive mechanisms, including performance-based monetary rewards and non-monetary recognition programs, with the aim of promoting green transformation and low-carbon operations through effective incentive structures.

PharmaEssentia Scenario Simulation Analysis Results

SSP Scenarios and Impacts to PharmaEssentia

Analysis of Financial Impacts on PharmaEssentia from Climate Change

Analysis of Financial Impacts from Climate Change

Metrics and Targets for Main Topics

• PharmaEssentia Biodiversity and No Deforestation Commitment

Energy Usage

PharmaEssentia’s energy consumption mainly stems from purchased electricity and natural gas. We continue to improve energy efficiency in production processes and are assessing investments in energy-saving equipment, including, but not limited to, magnetic suspension chillers, variable frequency air compressors, and energy-efficient equipment to reduce energy consumption and comply with Good Manufacturing Practice (GMP) requirements, which stipulate that production environments should maintain certain cleanliness and quality control standards. Specific achievements in 2025 included introducing an energy management system, optimizing chiller operations, adding refrigerant reclamation systems, and installing variable frequency motors to conserve energy and improve performance. Total investments amounted to NT$6.2 million, and we reduced energy usage by 354,649 kWh, equivalent to 168.1 tCO2e of carbon emissions.

Unit: MWh

Data coverage: includes PharmaEssentia Taiwan and Panco Healthcare

PharmaEssentia Greenhouse Gas Emissions

Scope 1 and 2 Emissions

Unit: t-CO₂e

Note 1. Data coverage: includes PharmaEssentia Taiwan
Note 2. Since 2024, PharmaEssentia Taiwan has implemented ISO 14064-1 greenhouse gas inventories with external verifications.

Scope 3 Emissions

Unit: t-CO₂e

Note 1. 2022~2024 Data coverage: includes PharmaEssentia Taiwan
Note2. 2025 Data coverage: includes PharmaEssentia Taiwan and Panco Healthcare

Scope 3 emissions split based on the 15 categories

Unit: t-CO₂e

Note 1. Data coverage: includes PharmaEssentia Taiwan
Note 2.“0”indicates calculated emissions that are not material;“–”indicates not applicable or no related activities.

PharmaEssentia Greenhouse Gas Intensities

Note 1: The reporting boundaries of greenhouse gas data shown in this table were as follows: 2023–2024 encompassed PharmaEssentia (Taiwan) and Panco; 2025 encompassed PharmaEssentia Taiwan, Panco, and the Panco Logistics Center. Revenue figures used for calculating intensities encompassed the entire Company.
Note 2: Inventoried greenhouse gases included carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulfur hexafluoride (SF6), and trifluoride nitrogen (NF3).
Note 3: These figures were calculated using the “emission factor method.” The emission factors for purchased electricity referenced information released by the Ministry of Economic Affairs Energy Administration. Electricity emission factors for 2022, 2023, and 2024 were 0.495, 0.494, and 0.474 kgCO2e/kWh, respectively. Electricity emissions factors for 2025 have not yet been released. Greenhouse gas emissions from natural gas combustion were calculated using the lower heating value and emission factor announced by the Ministry of Environment, then converted to CO2e values using the Global Warming Potential (GWP) values in the IPCC Sixth Assessment Report (AR6) released in 2021.
Note 4: Total product sales for the year (NT$ million) were used to measure usage intensity and emission intensity.

Energy Management Highlight for 2025: Technologically Driven Digital Transformation

PharmaEssentia’s Taichung Plant launched the Energy Efficiency Leadership Plan in 2025 amid steadily expanding production capacity, and saved 354,649 kWh of electricity in 2025 by introducing an energy management system and utilizing low-carbon technologies. These electricity savings represented a 5.9% reduction compared with 2024, and carbon reductions for the year amounted to 168.1 tCO2e. Core strategies and technological implementations included:

• T2024-512 PharmaEssentia Co., Ltd. Taichung Branch - Audit Result Notice
• PharmaEssentia Corp. Taipei GHG- Audit Result Notice

Water Withdrawal, Water Discharge, and Recycled Water

Unit: Million cubic meters

Data coverage: includes PharmaEssentia Taiwan and Panco Healthcare

Water Consumption Data for PharmaEssentia Main Operational Sites

Water Pollution Control and Wastewater Discharge Metrics

Wastewater discharged from our Taichung Plant undergoes appropriate treatment at the Central Taiwan Science Park Administration (Taichung Science Park) sewage treatment plant before being discharged. Water quality is monitored once every six months by certified testing institutes in accordance with Ministry of Environment regulations. Test results for 2025 all complied with applicable discharge standards and there were no significant material environmental pollution risks.

Taichung Plant Water Discharge Management

In 2025, PharmaEssentia’s total investments in waste management and air pollution management amounted to approximately NT$8.32 million, and included investments in pollution prevention equipment, waste treatment (such as for biopharmaceutical waste), management activity expenditures, and pollution prevention expenditures. PharmaEssentia regularly attends Taichung City Department of Environmental Protection, Central Taiwan Science Park Administration, and on-site facility promotion meetings to implement management measures and reduce negative environmental impacts.

Air Pollution Prevention

PharmaEssentia does not use or discharge ozone-depleting substances (ODS) listed in the Montreal Protocol or any persistent organic pollutants (POPs). We conduct regular tests and file reports on stationary air pollution sources in accordance with Ministry of Environment regulations. All test results showed our discharged air pollutants were lower than regulatory limits. Our overall discharge volumes have increased as global sales demands have driven an increase in total production volumes, but pollutant discharge volumes remain lower than regulatory limits. PharmaEssentia did not violate any air pollution regulations in 2025.

Generated Waste Volumes

Unit: Million cubic meters

Data coverage: includes PharmaEssentia Taiwan and Panco Healthcare

Hazardous Waste

Unit: ton

Data coverage: includes PharmaEssentia Taiwan and Panco Healthcare

PharmaEssentia Primary Discharged Gas Volumes

Note 1: The data in this table were taken from PharmaEssentia’s Taichung Plant; Panco Healthcare did not discharge any of the air pollutants listed in this table.

Current Circular Economy Actions

PharmaEssentia commits to source reduction through R&D, process design adjustments, Design for Environment processes, and selection of eco-friendly supplementary materials and recyclable structural designs to overturn traditional linear “extraction, manufacturing, use, disposal” models and transition to sustainable “closed-loop resource cycle” operations while adhering to Current Good Manufacturing Practice (cGMP) standards and ensuring product quality and patient safety.
We not only commit to optimizing circular use of factory resources within our operational control boundaries and improving the utilization rates of consumable materials, but also proactively leverage our core advantages. We work with value chain partners to promote safe disposal of downstream medical waste and recovery of energy resources as part of our eco-friendly practices and ecological protection actions that adhere to our sustainable development commitment.

Generated Waste Volumes

Note: The data in this table were taken from our PharmaEssentia headquarters, Panco, and our Taichung Plant.

PharmaEssentia Waste Intensities

Note: Waste intensity = (Total waste volumes - Total recycled and reused waste volumes)/NT$ million in revenue for the year

Generated waste volumes, recycling and reuse volumes, and intensities over past three years

PharmaEssentia Product Packaging Materials

Note 1: The data in this table was taken from our Taichung Plant.

Selection of lower-environmental-impact raw materials or components

• Environmental criteria, including resource efficiency, circularity, no-deforestation, and climate commitments, are incorporated into supplier selection. Suppliers with stronger sustainability performance are preferred when technical and commercial conditions are comparable.
• R&D activities seek to reduce the use of reagents, solvents, and hazardous chemicals, while evaluating environmentally friendly and recyclable materials.
• Alternative testing methods and microfluidic technologies have been introduced, reducing Limulus Amebocyte Lysate consumption by approximately 95%.

Reduction of emissions, energy consumption, water use and waste generation in production and manufacturing processes

• The Taichung Plant introduced an energy management system, optimized chiller operations, added refrigerant reclamation systems, and installed variable frequency motors, resulting in electricity savings of 354,649 kWh and carbon reductions of 168.1 tCO₂e in 2025.
• The Zhubei Plant incorporated green building concepts during the planning and design stages and submitted green building certification applications in 2025.
• The Taichung Plant recycles process reverse osmosis brine and wastewater for use in air-conditioner cooling towers. Recycled water volumes reached 10.05 million liters in 2025, representing a 3.31% increase compared with 2024.
• Waste intensity in 2025 decreased by 12.5% compared with the previous year, while waste recycling and reuse volumes increased by 44.19% compared with 2024.
• Stationary air pollution sources are regularly tested and reported in accordance with Ministry of Environment regulations. All discharged air pollutants remained below regulatory limits, and no violations of air pollution regulations occurred in 2025.

Improving the safety and environmental performance of distribution, storage, transportation and packaging

• Safety and traceability: PharmaEssentia complies with PIC/S Good Distribution Practice (GDP) requirements. A global product traceability mechanism and product serialization system have been established, assigning a unique identifier to each product and injection device. A cold-chain data traceability system provides 24-hour temperature monitoring throughout distribution to prevent counterfeit medicines and ensure product quality.
• Safe delivery and patient support: Temperature loggers are used throughout international transportation. To extend distribution safety to patients’ homes, PharmaEssentia provides medication guidance, self-injection instructions, and Q-verified insulated containers to maintain product temperatures between 2–8°C during transit from hospitals to patients’ homes.
• Packaging optimization: Panco Healthcare introduced reusable temperature-controlled containers in 2024 to reduce the use of single-use expanded polystyrene (EPS) packaging materials.
• Inventory preparedness and physical adaptation: To mitigate extreme weather and supply chain disruption risks, PharmaEssentia maintains safety stock levels of more than four months in the U.S. market. In addition, its Japan subsidiary established a secondary pharmaceutical warehouse in western Japan under its Business Continuity Planning (BCP) strategy, enabling dual-site operations and reducing geopolitical and physical climate risks.

Enhancing product-use efficiency to reduce energy, water and material consumption

• Ropeg, a long-acting interferon therapy, reduces dosing frequency and helps decrease the use of packaging materials, syringes, and associated medical waste during the product use phase.

End-of-life product management

• Waste Generation and Treatment PEC provides self-injection guide and instructions for patients on the disposal of injection pen after usage.

PharmaEssentia Low-Carbon Pharmaceutical Roadmap

PharmaEssentia has developed a Low-Carbon Pharmaceutical Roadmap, adopting a dual-track strategy of energy efficiency enhancement in the near term and energy transition in the longer term to achieve its 2030 carbon reduction target and progress toward its 2050 net-zero ambition. This strategy aligns with the Company’s focus on energy efficiency improvements, carbon management, and greenhouse gas reduction initiatives.

Phase I: Energy Efficiency Enhancement (2025–2027)

Focusing on energy-saving technologies and operational efficiency improvements, PharmaEssentia will gradually deploy proven energy efficiency measures across its operational sites.

2025 | Energy Efficiency Breakthrough

• Introduce variable-frequency air-conditioning systems
• Install refrigerant reclamation systems to improve heat exchange efficiency
• Optimize chiller flow control systems

2026 | Digital Energy Management

• Establish an Energy Management System (EMS) and energy management situation room
• Integrate real-time energy monitoring dashboards across operational sites
• Initiate feasibility assessments for renewable electricity procurement

2027 | Design Optimization

• Optimize process thermal energy circulation and utilization efficiency
• Incorporate green procurement practices and variable-frequency equipment into the Zhubei Plant
• Develop an implementation roadmap for the ISO 50001 Energy Management System

Phase II: Energy Transition and Value Chain Decarbonization (2028–2030)

Entering the energy transition phase, PharmaEssentia will gradually procure renewable electricity (green electricity) to support its decarbonization efforts.

2028 | Transition Readiness

• Expand process waste heat recovery initiatives
• Maximize the effectiveness of the EMS platform
• Introduce an Internal Carbon Pricing (ICP) mechanism

2029 | Low-Carbon Value Chain

• Launch low-carbon assessments for distributors
• Promote green logistics initiatives
• Optimize syringe packaging design and reduce packaging material usage

2030 | Target Achievement

• Achieve the Company’s absolute carbon reduction target
• Achieve a deeper decoupling of revenue growth and production expansion from carbon emissions
• Advance toward the 2050 net-zero emissions vision