ASEH is committed to the following:

• Ensure that our business operations and value chain activities are not located in globally or nationally designated biodiversity hotspots, or near the surroundings of hotspots and ecotones, to prevent negative impacts on protected species.

• If any of our business operations or value chain activities produce any negative impacts on the biodiversity or ecosystems, we will apply the mitigation hierarchy of Avoidance, Minimization, Restoration and Offsetting to mitigate the impacts and work towards the No Net Loss (NNL) target.

• Adopt an approach with regional characteristics to periodically assess the dependency and impact on the provision, regulation, support and cultural services of the ecosystems. Regularly monitor and disclose the biodiversity and ecosystem risks from our business operations and activities. Establish strategies for the corresponding actions, targets and goals, and regularly publish reports on the progress and achievements.

• Ensure that no deforestation is part of our business operations and activities across the value chain by establishing a system to monitor and strictly comply with international and national forest conservation regulations. Engage actively with suppliers and/or partners on future reforestation to compensate current forest loss (no net deforestation) and work towards the target of ending all deforestation (no gross deforestation) by 2030.
  

In compliance with applicable policy requirements and in response to the Taskforce on Nature-related Financial Disclosures (TNFD) initiative, ASEH directed its subsidiaries to conduct nature-related risk assessments at its 26 major manufacturing facilities worldwide. Based on the TNFD-LEAP guidance, we have identified the relationship between our major global manufacturing facilities and sensitive biodiversity areas (Locate); assessed the dependence and impact of each facility’s operations on nature (Evaluate); analyzed the corresponding risks and opportunities based on the dependence and impact path assessment and determined priority risks and opportunities through materiality analysis (Assess); and finally, formulated response strategies, set monitoring indicators and management goals, and published a Climate and Environmental Report (Prepare). The results of the natural risk assessment revealed that one facility in North America and one in Northeast Asia are located next to Category IV habitat/species management areas designated by the International Union for Conservation of Nature (IUCN). However, these facilities are operating in line with local regulations and no significant ecological impact has been observed. Furthermore, it should be noted that the majority of our facilities depend on natural climate regulation to mitigate potential disasters such as extreme temperatures or irregular rainfall, and that waste treatment and greenhouse gas emissions are the main environmental impacts of our factory operations. To manage the aforementioned physical/transitional risks and opportunities, each of our facilities has taken action to mitigate risks and seize opportunities through strategies such as improving energy use efficiency, optimizing water resource management, increasing waste recycling, and striving for net-zero greenhouse gas emissions. These efforts enable the company to generate profits from its operations while taking into account their impact on the environment, thereby realizing its vision of achieving harmony and coexistence with nature. For more information, see the 2023 Climate and Environment Report.