Matsubayashi Optics (Guangzhou) Co., Ltd. and Matsubayashi Optronics (Hubei) Co., Ltd. are hereinafter collectively referred to as "the Company".

The Company has established its sustainability management framework on its own initiative and operates it through an internal closed-loop management cycle (Plan–Do–Check–Act).

Environmental Contributions

Carbon Emissions and Climate Change: GHG inventory (Scope 1: direct emissions; Scope 2: indirect emissions from purchased electricity and steam; Scope 3: upstream and downstream value-chain emissions), carbon reduction targets, carbon neutrality roadmap, energy-saving retrofits, on-site solar PV systems / renewable electricity procurement, carbon offsets.

Energy Management: energy consumption accounting, energy efficiency improvement, phase-out of energy-intensive equipment, online energy-consumption monitoring.

Water Resources Management: water-use metering, water-saving technical retrofits, reclaimed water reuse, compliant wastewater discharge, rainwater harvesting.

Waste and Circularity: waste segregation, compliant disposal of hazardous waste, non-hazardous solid waste reduction, scrap recovery, recycled and circular materials, biodegradable packaging, zero-waste workshop initiatives.

Air and Pollutant Control: waste gas treatment, VOC control, noise abatement, soil and groundwater protection, cleaner production audits.

Biodiversity: site greening, ecosystem conservation, avoidance of impacts on ecologically sensitive sites, ecological risks in the supply chain.

Green Products: product carbon footprint, eco-design, lightweight packaging, design for recyclability.

Social Contributions

Employees: EHS (Environment, Health and Safety), fair compensation, anti-discrimination, workforce diversity, employee training, employee benefits, mental health support, work-related injury management, labour law compliance.

Supply Chain Social Responsibility: ESG-based supplier screening and onboarding, supplier audits, labour rights protection, prohibition of child labour, elimination of forced labour, supplier training, green procurement.

Product Responsibility: product quality and safety, customer privacy / data security, after-sales service, consumer engagement, product safety recall mechanism.

Community Engagement and Philanthropy: community dialogue, local employment, rural revitalisation support, charitable donations, employee volunteering, science outreach, emergency and disaster relief.

Data Security and Intellectual Property Protection.

Corporate Governance

Organisational Structure: ESG / Sustainability Committee under the Board of Directors, designated accountable executive (Chief Sustainability Officer, CSO).

Compliance and Risk Control: anti-corruption and anti-bribery, internal control, internal audit, conflict-of-interest declaration, anti-monopoly compliance.

Transparency and Disclosure: sustainability / ESG reporting, internal management ledgers, external disclosure.

Equity Structure, Board Independence and Executive Performance Assessment: ESG KPIs integrated into executive performance reviews and linked to remuneration.

Risk Management Mechanism: sustainability-related risk identification, materiality assessment, crisis response protocol.