ASEH adopts source reduction measures and prioritizes the use of eco-friendly materials to minimize waste generation and reduce environmental pollution. We require all facilities to complete ISO14001 certification, and collect and track each facility’s environmental-related data from the environmental management platform on a quarterly basis. Facilities that have not achieved the targets will need to propose improvement plans to reduce their waste output and increase their recycling rate. In 2023, a total of 68,657 tons of waste was generated; a positive progress towards our goal of zero landfill. At some locations, local government regulations mandate a close to zero landfill for hazardous waste. As such, there still remains approximately 2% of general waste that must be disposed of in landfills. The USI Shanghai-Shengxia and Zhangjiang Facilities have each obtained of UL Solutions Environmental Claim Validation (UL ECV), Gold certification for achieving zero waste to landfill. To ensure that waste removal is environmentally friendly and conducted responsibly, we have commissioned qualified local vendors to recycle and process 100% of the generated waste within the border. We also use AI tools to monitor the operations of waste transport vehicles. Each facility conducts waste vendor audits in various forms, including annual online, paper-based, and on-site audits, as well as random audits. These audits aim to ensure compliance with environmental regulations and the company’s policies, and ultimately to prevent environmental pollution incidents. To improve waste resource utilization, we have adopted the circularity model with a goal of 90% recycling rate for non-hazardous waste. In 2023, he hazardous waste intensity (hazardous waste generated per revenue) decreased by 58% compared with 2015, resulting in a 91% general and hazardous waste recycling rate which is, a 3% increase from the previous year.