Every Novatek employee is expected to regard environment, safety and health as his/her responsibility. Since Novatek is dedicated to sustainable operation and development, the nature and scale of environmental impact as well as safety and health hazards resulting from the operations of the Company are required to be in compliance with laws and regulations in order to minimize any harm to our environment. To reduce environmental impact caused by the Company’s activities, Novatek promises:

Novatek is an IC design company engaged in product design and sales. The production of our products is carried out by professional foundries and packaging & testing houses. Waste includes general industrial waste, daily life waste, and industrial waste (chip waste). In the management of chip waste, defective chips produced by outsourced manufacturers are recycled and reused as resources. Waste chips are delivered to professional treatment plants for the recovery of gold, silicon, or other heavy metals. In 2022, the volume of gold recovered reached 92 kg (equivalent to recycling 2.02 million mobile phones).

In 2022, the general industrial waste recycling rate was 51.17%, achieving the annual target of a recycling rate greater than 50%. Novatek will continue to use waste reduction and resource utilization as strategies to set the 2023 recycling target at greater than 50%. In 2022, the waste chip recycling rate was greater than 90%, achieving the annual target of a recycling rate greater than 90%. The waste chip recycling target for 2023 will remain greater than 90%.

Novatek has no manufacturing plants; therefore, its water management mainly involves water for domestic use, air-conditioning system condensate and cooling water for computer rooms. In 2022, the total water consumption was 93,489 m³, which was 4,624 m³ (1,000 L) less than the previous year or equivalent to the daily water consumption of 4,624 households. The annual water saving rate was 4.95%, exceeding the annual target of 2%, mainly due to the relocation of personnel from the Duxing Building in April 2022, which resulted in no water usage. In addition, there were improvements made to the R&D Building's pipeline leakage, daily water conservation efforts, and the Technology Building's cooling tower water conservation. These measures contributed to the reduction in water consumption. We will continue to strengthen water resource management and improve our water recycling mechanisms. The goal of 2023 water saving rate is improved by >2% compared with the previous year.

• Note：According to the "Research on Water Consumption Control for Residential and Office Buildings" conducted by the Architecture and Building Research Institute of the Ministry of the Interior, the estimated daily water consumption per person is 250 L. For general residential buildings, the water consumption is calculated based on an average of four persons per household, which is equivalent to a daily water consumption of 1,000 L (1 m³) per household.

Novatek is committed to environmental protection, and continues to implement energy-saving and carbon-reduction related projects in all offices. It prioritizes the purchase of green products and implements a plastic reduction policy to reduce the load on the environment, so as to achieve Novatek’s commitment to environmental protection. The implementation results in 2022 are as follows: