Material issues and their comparison with the topics of GRI Standards｜E Ink Stakeholders

Note 1: Financial Impact Levels: "High" indicates a financial impact on the organization/business ranging from TWD 100 million to 200 million; "Medium" indicates a financial impact ranging from TWD 100 million to 3,000 billion;

"Low" indicates a financial impact ranging from TWD 3 million to 30 million, and "None" indicates a financial impact below TWD 3 million or no financial link.

Note 2: Please refer to Chapter 2

Note 3: "Cause" refers to an organization causing an impact through its own activities; "Contribute to" refers to an organization's activities leading to, promoting, or inducing another entity to cause an impact; "Directly linked to"

refers to an organization not causing or contributing to negative impacts, but its operations, products, or services may generate negative impacts due to its business relationships.

To gain a deeper understanding of the societal impact of the material topics identified by E Ink, in 2022, E Ink initially selected two material topics: "Sustainable Supply Chain Management" and "Energy Management." The Social Cost of Carbon (SCC) was then employed to estimate the impact on society in terms of these topics.

The Social Cost of Carbon (SCC) serves as a monetary estimation of the economic repercussions stemming from the release of an additional ton of carbon dioxide into the atmosphere. This evaluation was conducted by the US EPA and other federal agencies in 2016. By quantifying the effects of climate change in economic terms, the SCC aids the Company in comprehending the financial ramifications of choices that influence emissions, whether increasing or decreasing. The estimation of SCC from 2010 to 2050 involved the utilization of three integrated assessment models (DICE, PAGE, and FUND), along with three discount rates note1 (2.5%, 3%, and 5%). Factors such as alterations in net agricultural productivity, human health, property damages due to heightened flood risks, and fluctuations in energy system costs were also integrated. As the impacts of climate change escalate, forthcoming emissions will result in even more substantial damages.

E Ink selected a median discount rate value of 3% to estimate the SCC for E Ink's scope 1, 2, and 3 emissions in 2022, as outlined below. The aim is to quantify the potential societal impact and establish a reduction target to mitigate the impact of the SCC on society caused by operations and the supply chain.