Darfon places great importance on the environmental impacts of its operating activities. In particular, the Company continuously monitors and manages water resources to prevent potential harm to the environment. To improve water-use efficiency and reduce water consumption, each plant actively implements water recycling measures. Recycling systems have been established at certain locations and have begun to deliver results, demonstrating the Company’s commitment to the sustainable use of water resources.

Water-related Risks
Darfon regularly assesses water-related risks at its operating locations using the water risk assessment tool developed by the World Resources Institute (WRI). The assessment results indicate that none of Darfon’s plants are located in areas of high water stress. The Company also does not withdraw water from ecological conservation areas, areas of biodiversity value, or protected or restored habitats.
Although Darfon’s manufacturing processes have a relatively low level of dependence on water resources, we continue to monitor and regularly review water use and regional water-related risks in view of the potential impacts of global climate change on water resources, thereby ensuring operational stability and fulfilling our environmental responsibilities.
Water Management
All water withdrawn by Darfon is supplied by local water utilities and is used primarily for manufacturing processes and domestic purposes. Wastewater is properly treated at wastewater treatment facilities before discharge. The following disclosures cover water withdrawal, water discharge, and water consumption.
