F-GHG Emissions Reduction Efforts FY2015 Supplier Profiles August 2017


F-GHG Emissions Reduction Efforts:
FY2015 Supplier Profiles

U.S. Environmental Protection Agency
Office of Air and Radiation
August 2017

The Supplier Profiles outlined in this document detail the efforts of large-area flat panel suppliers to reduce
their F-GHG emissions in manufacturing facilities that make today's large-area panels used for products such
as TVs and computer monitors.

Summary of Supplier Profiles

The table below summarizes which panel suppliers publicly report their F-GHG emissions, their most recent F-
GHG emissions, and, where available, their F-GHG emissions intensity based on panel production. It also
includes information on suppliers' broader GHG emissions reduction goals, since F-GHGs comprise a significant
portion of on-site Scope 1 GHG emissions, as well as the regulatory and/or voluntary efforts by which suppliers
are reducing their F-GHG emissions.

Most importantly, the table highlights which suppliers have fully implemented F-GHG emissions reduction
measures across their older and newer manufacturing, or fabrication, facilities, also referred to as 'fabs.' For
panel suppliers that have not fully implemented F-GHG reduction measures, whereby approximately 90
percent of annual F-GHG emissions are avoided or removed, further opportunities for improvement exist.

The summary table and charts reflect data, assembled from public sources and the suppliers themselves, on F-
GHG emissions for calendar year or fiscal year 2015, depending on the supplier's reporting cycle. Public
sources of information include suppliers' responses to the annual CDP Investor Questionnaire and each
supplier's annual sustainability reports.

Following the summary information, individual profiles provide more information on specific methods, such as
abatement, process optimization and use of alternatives that suppliers are using to reduce their F-GHG
emissions.

Supplier Market Share

The twelve global suppliers named among the profiles produce 98% of all large-area flat panel displays sold
globally, as shown in the chart below. Large area panels are defined as being 9.1 inches or larger.

1

-------
FY2015 Global Market Share of Large Area Panels Production for Featured Suppliers

China Star
5%

Sharp
5%

Other

LGDispiay

23%

BOE
10%

AUO

13%

Samsung
22%

Innolux
15%

I LGDispiay
Samsung
Innolux
All Optronics
BOE
Sharp
I China Star
1CEC Panda
CPT

Panasonic LCD
HannStar
Infovision
I Other

Note: Panasonic LCD is currently in
the process of exiting its LCD
manufacturing business.

Key Findings Based on 2015 Data

• Greater transparency is needed on all LCD panel suppliers' F-GHG emissions to better understand
overall trends in F-GHG emissions.

• An improved understanding is needed on the extent to which F-GHG emission reductions result from
both the use of F-GHG reduction technologies and the use of alternative F-GHGs in key processes to
better equip brands to understand all of the methods their suppliers are implementing to reduce F-
GHG emissions.

• An optimal F-GHG emissions intensity based on full abatement and/or the fullest use of alternative
gases could serve as an indicator for brands and other interested stakeholders on whether emissions
reduction efforts have been implemented to the fullest extent possible.

LCD Suppliers' Publicly Reported Annual F-GHG Emissions,
£ FY2015

j/j 500,000

£ "a?

uj ™ 400,000

CXJ G

71 t 300,000 M -M J! v V V

CO > -Q _Q _Q _Q _Q _Q _Q

¦ ~ _ru _ru _ro _ro _ru _ru _ro

LJ~ ^ 200.000 'ru ro 'ro 'ro 'ru "ro 'ro

™ < < <

c 100,000 o ¦ o ¦ ^ S ¦ S S o_

5 0 ¦ z ¦ 2 ¦ 2 = ¦ 2 * z ¦

y ^
-------
Company

Market Share of FPD Production

Publicly Reported FY2015 F-GHGs

FY2015 F-

GHG
Emissions

(MMTCOz
e)

% Reduction from FY2014

FY2015 F-GHG
Intensity

(MMTC02e/m2
of panel
produced)

GHG Reduction Goals1

National Regulations on F-GHGs/Carbon Trading

Participation in Voluntary National/International
(i.e., WDICC) F-GHG Efforts?

F-GHGs Targeted by
Emission Reduction
Efforts

Processes Targeted by
Emission Reduction
Efforts

Reduction
Approach(es)
Used

Full F-GHG
Emission Reduction
Measures
Implemented at
each fab (resulting
in overall ~90% F-

GHG emission
reductions across
all fabs)

Abatement

Process Improvements

CVD Remote Plasma

Other

sf6

PFCs

HFCs

nf3

Etch

Clean

Cool

Newer
Fabs

(built
after
2003)

Older
Fabs

LG Display

23%

Not
Available

Not Available

12.6%
by 2020

not
used

F-GHGs not
used

Samsung

22%

2015 F-GHG emissions data is not publicly available, however data for 2011 and part of 2012 are available in previous profiles.

Innolux

15%

394,223

15%

Not Available

not
inventoried

Optronics

13%

205,046

14%

0.039

25%
by 2015

cf4

deemed too
minor

BOE

10%

2015 F-GHG emissions data is not publicly available, however information on general GHG emissions management efforts is publicly available.

Sharp

•/

85,000

Not Available

cf4
c2f6
c4f8

CHF3

no info
available

China Star

2015 F-GHG emissions data is not publicly available.

CEC Panda

119,287

Not Available

Unknown

Panasonic
LCD

2015 F-GHG emissions data is not publicly available, as Panasonic LCD is ending its business of manufacturing panels for consumer televisions.

CPT

313,000

Not Available

280,000
MtC02e
by 2016

no info
available

HannStar

Not
Available

Not Available

F-GHGs not
used

Infovision

2015 F-GHG emissions data is not publicly available.

1 For more information on GHG emission reduction goals, including the base year and scope of included emissions, see the individual Supplier Profiles.

-------
Flat Panel Display Supplier Profiles

Flat panel display suppliers are presented in descending order of market share.

LG Display 5

Innolux Corporation 8

AUO (AU Optronics) 11

Sharp 16

CEC Panda 19

Chunghwa Picture Tubes (CPT) 21

HannStar 27

Suppliers Without Public Data 30

Samsung 30

BOE 30

China Star 31

Infovision 31

-------
LG Display FY2015 Data

23% Market Shore

Emissions Over Time

45%

40%

35%

•5"

30%

23% 25% j|

120% |
15% ro
10%

2015

The chart above shows the following separate but related metrics:

• Market share over time shows the size of the Supplier relative to all suppliers in the industry based on
area of panels produced.

• Total emissions over time show total F-GHGs emitted by the supplier each year. Supplier emissions can
change due to the implementation of emissions reduction efforts, an increase or decrease in panel
production, and/or LCD technology advancements.

• Emission intensity, where available, is a measure of the amount of F-GHG emissions per unit of
production. Trends in emission intensity show whether the Supplier's rate of emissions is increasing or
decreasing over time and can indicate whether the supplier is implementing emission reduction efforts.
LG Display does not publicly report F-GHG emission intensity.

F-GHG emissions are publicly reported by Suppliers through the CDP (formerly "Carbon Disclosure Project")
and/or corporate sustainability reports. In this graph, market share is calculated based on production data
from IHS Technology.

F-GHG Emission Reduction Activities

Overview

• There is no publicly available information on LG Display's F-GHG emissions for the most recent
calendar year, however additional information for earlier years can be found in LG Display's previous
profiles.

LG Display

4,000,000
3,500,000

3,000,000

2,500,000
2,000,000

£ 1,500,000

X 1,000,000
13

500,000
0

26%

18%

2011

24%

2012 2013 2014

I Market Share F-GHG Emissions (MTC02e)

-------
Gases Targeted

• SFs

• PFCs

• NF3

Processes Targeted

• Etching

• Cleaning

Approaches Used

Abatement

• Abatement Systems: LG Display has installed F-GHG abatement systems on all lines of cleaning tools
and on two lines of etching tools. Electrically heated point-of-use systems are installed for NF3 in
cleaning tools and combustion-type centralized systems are installed for SF6 and PFCs in etch tools.

Process Improvements

• LG Display has applied end-point detection and revised processes to optimize the use of F-GHGs.

Alternative Chemicals

• SF6 Replacement: In 2014, LG Display developed a gas application technology as an alternative to
using SF6 and has started implementing the use of the alternative.

• Remote Plasma Source Chamber Clean: LG Display has applied NF3 remote plasma source chamber
clean (RPSC) to all manufacturing lines. RPSC's utilization rate is 97% compared to 70% for an ordinary
chamber.

• NF3 Replacement: LG Display has replaced NF3 with F2 in chamber cleaning on one of its
manufacturing lines. LG Display continues to research alternative lower GWP etching gases than SF6
for the dry etching process.

Emissions Measurement Approaches and Verification

• LG Display uses national GHG emission estimation guidelines issued by the South Korean Ministry of
Environment and estimates NF3 emissions by using the 2006 IPCC Tier 2b guidelines.

• LG Display's GHG emissions are assured by a third party in accordance with South Korean government
regulations. NF3 emissions estimated by the 2006 IPCC Tier 2b Guidelines for National Greenhouse Gas
Inventories for electronics industry emissions are not assured by a third party, but cross-checked by
WDICC members.

Emission Reduction Goals and Progress

• LG Display set a corporate-wide GHG reduction goal to reduce its GHG emissions intensity by 29%
from 2009 to 2020.

• LG Display set a target to reduce Scope 1 and Scope 2 GHG emissions 12.6% by 2020 and 54.6% by
2040, relative to 2014 levels. Scope 1 emissions include F-GHGs.

• LG Display's F-GHG emissions reduction efforts are part of its broader goals to reduce corporate-wide
GHG emissions.

-------
• LG Display has been participating in GHG emissions trading since January 2015.

• In 2015, LG Display implemented its Carbon Footprint Calculator to respond to government GHG
regulations and respond to customer preference for environmentally friendly products.

• LG Display is a member of the Korea Display Industry Association (KDIA), where it participates in an
environmental working group that promotes information exchange on GHG emissions reduction
technologies and initiatives. KDIA represents Korea's flat panel display suppliers in the World Display
device Industry Cooperation Committee (WDICC).

Sources

Korea Display Industry Association. See http://www.kdia. org/new/ena/.

LG Display 2015-2016 Sustainability Report. Available at http://www.ladisplav.com/ena/sustainabilitv/report.

LG Display 2014-2015 Sustainability Report. Available at http://www.ladisplav.com/ena/sustainabilitv/report.

LG Display's responses to the 2011 Carbon Disclosure Project Investor Questionnaire.

LG Display's responses to the 2014 Carbon Disclosure Project Investor Questionnaire.

LG Display's responses to the 2016 Carbon Disclosure Project Investor Questionnaire

"Point of Use Abatement Device to Reduce SF6 emissions in LCD Manufacturing Operation in the Republic of
Korea (South Korea)." LG Display's SF6 Abatement Project. Clean Development Mechanism Project:
3440. Available at https://cdm.unfccc.int/Proiects/DB/SGS-UKL1266943063.39/view.

LG Display (response in 2014 regarding 2012/2013 data).

-------
Innolux Corporation FY2015 Data

15% Market Share

Emissions Over Time

Innolux

(N 500,000

400,000

18%

16%

8 300,000
E

^ 200,000

16%

15%

0.009
0.008
0.007
0.006
0.005
0.004
0.003
0.002
0.001
0

| 8

m 5

CD ^

2011

2012

2013

I Market Share F-GHG Emissions (MTC02e)

2014 2015

Emissions Intensity (MTC02e/m2)

The chart above shows the following separate but related metrics:

• Market share over time shows the size of the Supplier relative to all suppliers in the industry based on
area of panels produced.

• Emission intensitywhere available, is a measure of the amount of F-GHG emissions per unit of
production. Trends in emission intensity show whether the Supplier's rate of emissions is increasing or
decreasing over time and can indicate whether the supplier is implementing emission reduction efforts.

F-GHG Emission Reduction Activities

Overview

• In 2015, Innolux emitted approximately 394,000 MtC02e of F-GHGs, as follows:

HFCs: 13,143.78

PFCs: 23,081.92
SFs: 357,997.05

• Innolux reported a 15.4% reduction in total F-GHG emissions compared to 2014.

-------
• Innolux reduced its F-GHG emission intensity from 0.0094 MtC02e/m2 in 2010 to 0.0086 MtC02e/m2 in
2012, and in 2013 it dropped to 0.0073 MtC02e/m2.

• In 2015, Innolux reported that removal equipment reduced total annual F-GHG emissions by
2,139,043 tons of C02e, compared to 2,465,694 tons of C02e reduced in 2014, and 2,622,000 tons of
C02e reduced in 2013.

• In 2015, F-GHGs represented 3.8 percent of Innolux's total GHG emissions compared to 14 percent of
total emissions in 2014.

Gases Targeted

• SFs

• PFCs

Processes Targeted

• Cleaning

• Etching

• Innolux uses a small amount offluorinated heat transfer fluids, but has not inventoried them.

Approaches Used

Abatement

• Abatement Systems: Innolux has installed abatement systems in all newer generation fabrication
facilities (fabs) and has installed burn type point-of-use abatements systems in all fabs constructed
prior to 2003.

• Local Scrubbers: Innolux installed combustion local scrubbers between 2011 and 2015, collectively
eliminating 1,200 million tons of F-GHGs. More local scrubbers are scheduled for installation in 2016.

Process Improvements

• Innolux is optimizing the use of F-GHGs in the process chambers. Additional details not available.

Recycling/Reuse

• Recovery System: Innolux is working with the Industrial Technology Research Institute of Taiwan to
test an SF6 liquefaction recovery system. If it works, Innolux will expand the system across applicable
fabs.

Alternative Chemicals

• Innolux is using lower GWP gases, where possible. Additional details not available.

Emissions Measurement Approaches and Verification

• Innolux estimates F-GHG emissions based on the Tier 2b method for electronics industry emissions
provided in the 2006 IPCC Guidelines for National Greenhouse Gas Inventories.

• Innolux received third party verification for its 2014 GHG inventory, which was verified in accordance
with the ISQ-14064-3 standard.

HFCs
NF,

-------
Emission Reduction Goals and Progress

• In 2013, Innolux released its Product Carbon Footprint (PCF) system to help streamline calculations of
emissions on a per product basis.

• In 2015, Innolux audited the carbon emissions of 69 suppliers and 132 materials.

• Innolux plans to continue monitoring carbon emissions to establish a comprehensive database.

• Innolux applied for early carbon credits for its carbon reduction efforts between 2005 and 2011,
receiving 16 million tons in credits in 2015 for Taiwan's cap and trade program.

Participation in Broader F-GHG Reduction Efforts

• Innolux is a member of Taiwan's TFT-LCD Association (TTLA). The TTLA participates on behalf of
Taiwan's LCD suppliers in the World Display device Industry Cooperation (WDICC), whose members
have agreed to 30% F-GHG emission reductions by 2020 relative to 2010 levels.

Sources

2014 Innolux CSR Report. Available at

http://www.lnnolux.com/Files/CWSFiles/csr/2014 lnnolux%20CSR%20reDort-en.pdf (see page 53).

2015 INNOLUX CSR Report. Available at http://www.innolux.com/Files/CWSFiles/csr/CSR2015-en 0630f.pdf

(see page 47).

SF6 Abatement Strategy in Taiwan". Presentation by Taiwan's Industrial Technology Research Institute (ITRI),

2004. Available at www.epa.aov/electricpower-sf6/documents/conf04 lu.pdf.

Innolux Corporate Social Responsibility 2015 Summary. Available at

http://www.innolux.com/Paaes/EN/CSR/LOVE/Green Operations/Climate Change Risks and Opport
unities EN. htm I

Innolux's responses to the 2014 Carbon Disclosure Project Investor Questionnaire.

Innolux's responses to the 2015 Carbon Disclosure Project Investor Questionnaire.

Innolux's responses to the 2016 Carbon Disclosure Project Investor Questionnaire.

Taiwan Environmental Protection Administration. "The Initiative and Efforts from Electronic Corporations in
Taiwan- Semiconductor and TFT-LCD." Available at

http://unfccc.epa.aov.tw/unfccc/english/ uploads/downloads/05 The Initiative and Efforts form El
ectronic Industry in Taiwan.pdf.

TTLA presentation atAPEC meeting, August 2012, Taiwan.

-------
AUO (AU Optronics) FY2015 Data

Emissions Over Time

300,000

100,000
50,000

13% Market Share

AUO

350,000 0.0045

0.004 c

250,000 £ ^

c i a0/ i/io/ 0.0035 vj

o 200,000 14/0 14% VI

o
-------
• From 2010 to 2015, AUO reduced its GHG emissions intensity, which includes both Scope 1 and Scope
2 emissions, by 20%, from 58.5 kg C02e/m2 (0.059 MtC02e/m2) to 46.8 kg C02e/m2 (0.047
MtC02e/m2). AUO has pledged to continue its efforts to achieve an additional 5% reduction in
emissions intensity by 2020 to attain their 25% GHG reduction goal. Specifically, from 2008 to 2015,
AUO reported a 61% reduction in F-GHG emissions per unit of production, from 9.96 kg C02e/m2
(0.010 MtC02e/m2) to 3.91 kg C02e/m2 (0.0039 MtC02e/m2).

• From 2003 to 2015, AUO reduced F-GHG emissions by 120.16 million metric tons C02e. This is
equivalent to taking 25 million cars off the road for one year.2

Gases Targeted

• SFs • HFCs

• PFCs (specifically CF4) • NF3

Processes Targeted

• Etching

• Cleaning

• Cooling: Per the "Guidance for Greenhouse Gas Accounting and Reporting for GHG inventory"
published by the Taiwanese EPA, emissions from fluorinated heat transfer fluids are too minor in AUO's
process to account for.

Approaches Used

Abatement

• Localized Abatement Systems: As of 2015, AUO has installed localized, point-of-use abatement
systems in all fabrication facilities (fabs).

• Abatement for Cleaning: AUO uses combustion abatement systems for cleaning processes in all fabs.

• Abatement for Etching: AUO uses combustion abatement systems or membrane separation
technology for dry etching processes on all new production lines (built after 2003).

Process Improvements

• Reduced SF6 Consumption: AUO's process experts worked with its SF6 supplier to implement ways to
reduce the quantity of SF6 used in etching across all fabs. At one of its fabs, at full production capacity,
adjusting relevant SF6 process parameters can result in reducing the equivalent of 32,000 metric tons
of C02 annually, which is equal to 18% of AUO's reported SF6 emissions in 2015.

• Reduced Gas Waste and Improved Utilization Efficiencies: By installing flow meters and mass flow
controllers at the front of tool chambers, on-site engineers have been able to reduce unnecessary gas
waste and improve gas utilization efficiencies.

2 Calculated using EPA's Greenhouse Gas Equivalencies Calculator, which is available at
https://www. epa.aov/enerav/areenhouse-aas-eauivalencies-calculator

-------
Alternative Chemicals

• NF3 Substitution: AUO uses NF3 instead of SF6 in cleaning, since NF3 has a lower global warming
potential (GWP) and it is used more efficiently.

• Ongoing Research: AUO continues to research the possibilities of using alternative gases with lower
no GWP in conjunction with optimizing process efficiencies and implementing abatement systems.

Recycling/Reuse

• Recycling Test: In 2012, AUO tested gas recycling technologies and recycling efficiency at one fab.

• Reuse Pilot: In 2013, AUO's Longtan site introduced a membrane separation method that purifies SF
so that it can be re-used in the manufacturing process. However, due to a higher maintenance
demand and lower efficiency, the recycling system has been replaced by an abatement system.

Emissions Measurement Approaches and Verification

• AUO estimates F-GHG emissions based on the Tier 2b method for electronics industry emissions
provided in the 2006 IPCC Guidelines for National Greenhouse Gas Inventories, including use of
default destruction or removal efficiency (DRE) values for abatement.

• A third party verifies AUO's raw data according to the ISO 14064-1 guidance (verification document
included below).

Emission Reduction Goals and Progress

• AUO set a goal to reduce Scope 1 and 2 GHG emission intensity in all fabs globally by 25% from 2010
to 2015. F-GHGs are included as part of Scope 1 emissions.

• AUO has a "Green Solutions" initiative that addresses emissions reductions through operations, supp
chain improvements, and product design.

Participation in Broader F-GHG Reduction Efforts

• AUO is a member of Taiwan's TFT-LCD Association (TTLA). The TTLA participates on behalf of Taiwan'
LCD suppliers in the World Display device Industry Cooperation (WDICC), whose members have
agreed to 30% F-GHG emission reductions by 2020 relative to 2010 levels.

• AUO participates in the Product Attribute to Impact Algorithm (PAIA) Project to develop lifecycle
impact calculation tools for LCDs, capturing F-GHG emissions information.

• AUO has engaged in developing the SF6 abatement verification methodology for LCD industries in
Taiwan.

• AUO received 9.41 million tons of tradeable carbon credits by the Taiwan EPA for its early action on
PFC reductions and third party verification of its F-GHG abatement.

-------
DNVGL

VERIFICATION STATEMENT
OF GREENHOUSE GAS

ASSERTIONS

Statement No.: Issued ctate: Paget of 4

00012-2016-AG-TWN-Rev.l 5 May, 2016

This is to verify initiate reporting of Greenhouse Gas Inventory Management Report (2015) of

AU Optronics Corporation

Scope of Verification

DNV GL Business Assurance (DNV GL) has been commissioned by AU Optronics Corporation to
perform a verification of the greenhouse gas assertion of Greenhouse Gas Inventory
Management Report (2015) (hereafter the "Inventory Report") with respect to the sites listed In
Appendix.

Verification Criteria and GHG Programme

The verification was performed on the basis of ISO 14064-1:2006 and CNS 14064-1:2006 as
well as criteria given to provide for consistent GHG emission identification, calculation,
monitoring and reporting,

Verification Statement

It Is DNV GL's opinion that with reasonable assurance the greenhouse gas assertion of the
Inventory Report of 4th March, 2016 Is free from material discrepancies in accordance with ISO
14064-1:2006 and CNS 14064-1:2006, DNV GL thus requests the registration of the Inventory
Report as a GHG inventory demonstration project.

Chlen VI Jerry lluarvg For the Issuing office:

GHG Verifier DNV GL Business Assurance Co,, Ltd.

29 FL, No. 293, Sec. 2, Wenhua Rd.,
Banqlao District, New Taipei City 220,
0jcHj-jY Taiwan

Place and date:
Taipei, 5 May, 2016

Management Representative

Lack of fulfilment o* condltJoro as set out In the CcrtJflcatton Agreement may render this Certificate invalid.

This Verification Opanlon Is based on the Informrrtlan made available to nr. and the engagement conditions detailed above. Hence, DNV GL cannot guarantee tlw
accuracy correctness or the information. DNV GL cannot be held liable by any party refyfng at actJnfl upon this Veftftcatton Opinion.

293 «l 29 IS, TEL: *8»&-2-e2537800, webvte: www.drrvgl.com.tw

-------
Sources

AUO 2011 Corporate Social Responsibility Report.

AUO 2013 Corporate Social Responsibility Report (Section 4.2.1, page 61) Available at

http://www.auo.eom/upload/download/l/AUO 2013 CSR EN All.pelf.

AUO 2015 Corporate Social Responsibility Report (Section 4.2.1, page 82). Available at

http://www.auo.eom/upload/download/l/2015 CSR All en.pdf.

AUO's responses to the 2014 Carbon Disclosure Project Investor Questionnaire.

AUO's responses to the 2015 Carbon Disclosure Project Investor Questionnaire.

AUO's responses to the 2016 Carbon Disclosure Project Investor Questionnaire.

AUO direct communications.

EPA Greenhouse Gas Equivalencies Calculator. Available at https://www.epa.aov/enerav/areenhouse-gas-
eauivalencies-calculator.

Taiwan Environmental Protection Administration. "The Initiative and Efforts from Electronic Corporations in
Taiwan- Semiconductor and TFT-LCD." Available at

http://unfccc.epa.aov.tw/unfccc/enalish/ uploads/downloads/05 The Initiative and Efforts form El
ectronic Industry in Taiwan.pdf.

TTLA presentation atAPEC meeting, August 2012, Taiwan.

World Display device Industry Cooperation Committee Environmental Report. Available at

http://home.jeita.or.jp/device/committee/pdf/Environmental%20Report ENG 161110.pdf.

-------
Sharp FY2015 Data

5% Market Share

Emissions Over Time

120,000

y 100,000

iD
x
o

60,000

20,000

Sharp

14%

_ I I I I

2012

Market Share

2013 2014

— F-GHG Emissions (MTC02e)

20%

18%

16% _
14% d)

12%

10%

The chart above shows the following separate but related metrics:

• Market share over time shows the size of the Supplier relative to all suppliers in the industry based on
area of panels produced.

F-GHG emissions are publicly reported by Suppliers through the CDP (formerly "Carbon Disclosure Project")
and/or corporate sustainability reports. In this graph market share is calculated based on production data from
IHS Technology.

F-GHG Emissions Reduction Activities

Overview

• In 2015, Sharp emitted a total of approximately 85,000 MtC02e of F-GHGs, as follows:

o HFCs: 5,000
o PFCs: 34,000
o SFs: 37,000

-------
o NF3: 9,000 MtC02e

Gases Targeted

• SFs

• PFCs (CF4, C2Fs, C4Fs)

• HFCs (CHF3)

• NF3

Processes Targeted

• Etching

• Cleaning

Approaches Used

Abatement

• Abatement Systems: Sharp has installed abatement systems on all etching and cleaning process
equipment.

Process Improvements

• Researching Process Optimization: Sharp has been researching ways to improve process optimization
and manufacturing process conditions at the time that manufacturing equipment is first installed and
in daily operations.

Alternative Chemicals

• Researching Lower GWP gases: Sharp has been collecting the latest information from relevant sources
and researching the possibility of using lower GWP alternative gases.

Recycling/Reuse

• Sharp implements the recycling of F-GHGs in some manufacturing processes.

Emissions Measurement Approaches and Verification

• Sharp estimates F-GHG emissions based on the Tier 2b method for electronics industry emissions
provided in the 2006 IPCC Guidelines for National Greenhouse Gas Inventories.

• Sharp's Sustainability Report is audited by a third-party organization.

Emission Reduction Goals and Progress

• Sharp works to reduce F-GHG emissions in accordance with the targets of Ministry of Economy, Trade
and Industry; the Japan Electronics and Information Technology Industries Association (JEITA); and
other industrial associations.

• Sharp set a goal to reduce annual GHG emissions to below FY2007 baseline emissions levels for ten
manufacturing fabrication facilities (fabs) by 2011.

• Sharp set a goal to reduce GHG emissions intensity per adjusted production unit (tons of CO2e/100
million yen) by 35% across the ten fabs by 2012. By end of fiscal year 2011, Sharp met both of its goals
and reduced total emissions by 40% and emissions intensity by 42%.

-------
• In fiscal year 2015, the Sharp Group's GHG emissions decreased by 15% compared to the previous
fiscal year.

Participation in Broader F-GHG Reduction Efforts

• Sharp is a member of the Japan Electronics and Information Technology Industries Association (JEITA),
which participates on behalf of Japan's LCD suppliers in the World Display device Industry Cooperation
Committee (WDICC).

Sources

Japan Electronics and Information Technology Industries Association (JEITA). See
h ttp ://www. jeita.or. jp/en glish/.

Nishida, et al. PFC Emission Reduction Strategy for the LCD Industry. Journal of the SID 13/10. 2005

Sharp (Sharp Corporation).

Sustainability Report 2016 by the Sharp Corporation, page 21. Available at: http://www.sharp-
world. com/corporate/eco/report/ssr/pdf/ssr2016e. pdf.

Sustainability Report 2016 by the Sharp Corporation. Available at:

http://www.sharp.co.ip/corporate/eco/report/ssr/index.html.

-------
CEC Panda FY2015 Data

1% Market Share

Emissions Over Time

CEC Panda

140,000 5.0%

^ 120,000 • _

^ 4.0% ^

O "

y 100,000 £

£ 80,000
o

.2 60,000

^ 40,000

20,000

1.0%

1.1%

1.2%

3.0% ^

2.0%

1.0%

0 0.0%

2011 2012 2013 2014 2015

Market Share • F-GHG Emissions (MTC02e)

The chart above shows the following separate but related metrics:

• Market share over time shows the size of the Supplier relative to all suppliers in the industry based on
area of panels produced.

F-GHG Emission Reduction Activities

Overview

• 2015 is the first year that CEC Panda has reported F-GHG emissions to the CDP.

• In 2015, CEC Panda emitted a total of approximately 119,287 MtC02e of F-GHGs, as follows:

HFCs: 58,381

PFCs: 8,758

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SF6: 13,002
NF3: 39,146

Gases Targeted

No information is available on gases targeted by CEC Panda's F-GHG emission reduction activities.

Processes Targeted

No information is available on processes targeted by CEC Panda's F-GHG emission reduction activities.
Approaches Used

No information is available on approaches used by CEC Panda to reduce F-GHG emissions.

Emissions Measurement Approaches and Verification

• CEC PANDA estimates its F-GHG emissions based on the Tier 2b method provided by the 2006 IPCC
Guidelines for National Greenhouse Gas Inventories for electronics industry emissions.

• CEC PANDA has not undergone third party verification or assurance for its reported Scope 1 emissions,
which include F-GHG emissions, for its calendar year 2015 GHG inventory data.

Emission Reduction Goals and Progress

CEC Panda does not have or disclose GHG reduction goals and activities.

Participation in Broader F-GHG Reduction Efforts

No information is available on CEC Panda's participation in broader F-GHG reduction efforts.

Sources

CEC PANDA's responses to the 2016 CDP Investor Questionnaire

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Chunghwa Picture Tubes (CPT] FY2015

Data

1% Market Share

Emissions Over Time

CPT

500,000

400,000

300,000

CD 200,000

100,000

III

7%
6%
5%
4%
3%
2%
1%
0%

2011

2012

2013

2014

2015

I Market Share F-GHG Emissions (MTC02e)

The chart above shows the following separate but related metrics:

• Market share over time shows the size of the Supplier relative to all suppliers in the industry based on
area of panels produced.

• Emission intensity, where available, is a measure of the amount of F-GHG emissions per unit of
production. Trends in emission intensity show whether the Supplier's rate of emissions is increasing or
decreasing over time and can indicate whether the supplier is implementing emission reduction efforts.
CPT does not publicly report F-GHG emission intensity.

F-GHG Emission Reduction Activities

Overview

• In 2015, CPT emitted approximately 313,000 MtC02e of F-GHGs, a 62% reduction from 2008, but an
increase from 2014.

-------
• CPT reduced F-GHG emissions by approximately 30 million MtC02e between 2002 and 2014. This is
equivalent to removing 6.3 million vehicles from the road for one year.3

Gases Targeted

• SFs • HFCs

• PFCs • NF3

Processes Targeted

• Etching

• Cleaning

Approaches Used

Abatement

• Abatement Systems: CPT has installed abatement systems in all newer generation fabrication facilities
(fabs).

Process Improvements

• PFC Reduction: In 2014, CPT implemented PFC reduction methods and evaluated process equipment,
targeting its 4.5 generation fabs, an earlier generation of fabs built prior to 2004.

• Cleaning Process: CPT completed reconstruction of the cleaning process in their Taoyuan and Longtan
plants, resulting in a 38% emission reduction of fluorinated compounds in 2014 from 2010 levels,
equal to approximately 170,000 MtC02e of carbon dioxide.

Alternative Chemicals

• SF6 Replacement: CPT is using lower GWP gases, where possible. For example, CPT continues to
implement carbon reduction activities by replacing SF6 with NF3 in cleaning processes.

Emissions Measurement Approaches and Verification

• CPT estimates its F-GHG emissions based on the Tier 2b method provided by the 2006 IPCC Guidelines
for National Greenhouse Gas Inventories for electronics industry emissions.

• CPT's annual GHG inventory undergoes third party verification (verification document included
below).

Emission Reduction Goals and Progress

• CPT set a goal to reduce GHG emissions by 280,000 MtC02e from 2013 to 2016 through process
optimization, adoption of dry etch machinery, and installation of tail gas incinerator facilities.

• In 2015, CPT's GHG emissions were 1,127,003 MtC02e, representing a decrease of approximately
354,000 MtC02e or 23.9% compared to 2008 emissions. The majority of CPT's GHG emissions are from
F-GHG process emissions and electricity use.

3 Calculated using EPA's Greenhouse Gas Equivalencies Calculator, which is available at
https://www. epa.aov/enerav/areenhouse-aas-eauivalencies-calculator

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Participation in Broader F-GHG Reduction Efforts

• CPT is a member of the Taiwan's TFT-LCD Association (TTLA). The TTLA participates on behalf of
Taiwan's LCD suppliers in the World Display device Industry Cooperation (WDICC), whose members
have agreed to 30% F-GHG emission reductions by 2020 relative to 2010 levels. CPT will work with
TTLA to provide regular emission information of fluorinated compounds, and engage in reductions of
fluorinated compounds.

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DNV-GL

VERIFICATION STATEMENT
OF GREENHOUSE GAS
ASSERTIONS

Statement Mo.: Issued date: Page t of 2

00006-2016-AG-TWN-Rev.l 30 December, 2016

This is to verify initiate reporting of Greenhouse Gas Inventory Management Report (2015) of

CHUNGHWA PICTURE TUBES LTD.

Scope of Verification

DNV GL Business Assurance (DNV GL) has been commissioned by CHUNGHWA PICTURE TUBES
LTD. to perform a verification of the greenhouse gas assertion of Greenhouse Gas Inventory
Management Report (2015) (hereafter the "Inventory Report") with respect to the following
area:

Taoyuan: No.1127, Heping Rd., Bade Dist., Taoyuan City, Taiwan, R.O.C.

Lungtan: No.l, Huaying Rd., Longtan Dist., Taoyuan City, Taiwan, R.O.C.

Yangmel: No.80, Xingshan Rd., Yangmei Dist., Taoyuan City, Taiwan, R.O.C.

Wujlang (CPTW) :No. 88 Jiang Xing East RD., Wujiang Economic Technology Development

Zone,jiangsu Province,China, P.R.C.

Fujian (FDT): No. 6 Rujiang West Road,Mawei Hi-tech Development Zone, Fuzhou,China, P.R.C.
CPTF: No. 1 Xing Ye Road Mawei Hi-tech Development Zone, Fuzhou,China, P.R.C.

FVD: No. 1 Xing Ye Road Mawei Hi-tech Development Zone, Fuzhou,China, P.R.C.

CTOC: Sbangzheng,Yuanhong Road,Fuqing City, Fujlan Province,China, P.R.C.

Verification Criteria and GHG Programme

Verification Statement

It is DNV GL's opinion that with reasonable assurance the greenhouse gas assertion of the
Inventory Report of July 22, 2016 is free from material discrepancies in accordance with ISO
14064-1:2006 and CNS 14064-1:2006. DNV GL thus requests the registration of the Inventory
Report as a GHG Inventory demonstration project.

Jerry Huang
GHG Verifier

Far the issuing office:

DNV GL Business Assurance Co., Ltd.

29FI., No. 293, Sec. 2, Wenhua Rd.,

Banqlao District, New Taipei City 220,

Taiwan

Place and date:

Taipei, 30 December, 2016

Management Representative

Lack of fulfilment of conditions as set out In the Certification Agreement may fender this Certificate invabd.

Thii verification Opinion is based on the information made avai'abie to u» and the engagement conditions detailed above Hence. DNV Gl cannot guarantee the
accuracy or correctness of the information. DNV GL cannot be hett kable by any party relying or acting upon ihts Verification Opinion.

ffjtTJCafltXftfl-* 29* * TR : +886-2-82537800, website, www.dnvgl com.tw

-------
DNV-GL

Statement Mo.; 00006-2016-AG-TWN-Rev.l Page 2 of 2

Place and date: Taipei, 30 December, 2016

Supplement to Statement

Process and Methodology

The reviews of the Inventory Report and the subsequent follow-up interviews have provided
DNV GL with sufficient evidence to determine the fulfilment of stated criteria. The Inventory
Report correctly complies with the requirement of ISO 14064-1:2006 and CNS 14064-1:2006.

Quantification of Greenhouse Gas Emission

The Inventory Report covering the period Is5 January, 2015 to 31R December, 2015 it is DNV GL's
opinion that the Inventory Report results in quantification of GHG emissions that are real,
transparent and measurable.

Organizational Boundary of Verification

~Financial Management Control ^Operational Management Control EHEquity Share
GHGs Verified

0COj 0CH4 E*3n30 EIHFCs EiPFCs ®sf6 EJnf3

Total Direct Emissions: 562,044.68 Tonnes C02-e

Total Energy Indirect Emissions: 564,958.60 Tonnes C02-e

The Indirect Emissions was calculated based on 2014 electricity emission factor of 0.528 kg
COa-e/kwh, which was announced on 17"1 June, 2016 by Bureau of Energy, Ministry of Economic
Affairs. The Global Warming Potential (GWP) defined in IPCC AR4 (2007) has been chosen and
correctly referred by the Organization.

Verification Opinion

0 Verified without Qualification
~ Unable to Verify

Lack of fulfilment of condttvon* at «t out In the Certification Agreement may render (Ms Certificate invalid.

Tlws Verification Opinion is baved on the information made available to us and the engagement condition* detailed above. Hence, DNV GL cannot guarantee Ihe
accuracy or correctness of the information. DNV GL cannot be h«4d liable by any party refying or acting upon this Verification Opinion.

-------
Sources

CPT 2014 Corporate SustainabHity Report (page 28)

http://www.cptt.com.tw/cptt/enalish/html/2014 ebook CSR EN/index.html#p=32.

CPT 2015 Corporate SustainabHity Report (page 42)

http://www.cptt.com.tw/cptt/english/html/2015 ebook CSR EN/index.html#p=42.

CPT direct communications.

CPT's responses to the 2009 Carbon Disclosure Project Supply Chain Questionnaire.

CPT's Responses to the 2015 CDP Investor Questionnaire. Available at

https://www.cdp.net/sites/2015/45/22645/Climate%20Chanae%202015/Paaes/DisclosureView.aspx.

CPT Website : http://www.cptt.com. tw/cptt/english/images/stories/08 CSR/CSR 07/GHG.pdf.

CPT Website: Environmental Management:

www.cptt.com.tw/index.php?option=com content&task=view&id=447<emid=180.

EPA's Greenhouse Gas Equivalencies Calculator. Available at https://www.epa.gov/energy/greenhouse-gas-
equivalencies-calculator.

"SFs Abatement Strategy in Taiwan". Presentation by Taiwan's Industrial Technology Research Institute (ITRI),
2004. Available at www.epa.gov/electricpower-sf6/documents/conf04 lu.pdf.

TTLA presentation atAPEC meeting, August 2012, Taiwan.

World Display device Industry Cooperation Committee Environmental Report. Available at

http://home.jeita.or.jp/device/committee/pdf/Environmental%20Report ENG 161110.pdf.

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HannStar FY2015 Data

1% Market Share

Emissions Over Time

HannStar

0 100,000
u

-------
Gases Targeted

• SFs

• NF3

Processes Targeted

• Etching

• Cleaning

Approaches Used

Abatement

• Local Scrubber: HannStar has installed a high efficiency local scrubber to reduce emissions of SF6, NF3
and other PFCs.

• Abatement Systems: HannStar has installed abatement systems in all newer generation fabrication
facilities (fabs).

Process Improvements

• Hannstar is optimizing the use of F-GHGs in the process chambers. Additional details not available.

Alternative Chemicals

• HannStar is using lower GWP gases, where possible. Additional details not available.

Emissions Measurement Approaches and Verification

• HannStar estimates F-GHG emissions based on the Tier 2b method for electronics industry emissions
provided in the 2006 IPCC Guidelines for National Greenhouse Gas Inventories.

• HannStar's plants in Taiwan have been developing GHG inventories and implementing third party
verification with reference to ISO 14064-1 since 2005.

• HannStar's plants in China have been developing GHG inventories since 2012, but have not had these
inventories verified by a third party.

Emission Reduction Goals and Progress

• Since HannStar's GHG emissions are mostly due to electricity consumption and the use of F-GHGs in
flat panel display manufacturing, the company has focused its GHG reduction efforts on these two
areas.

• HannStar applied for GHG early action offset credits based on the Taiwan EPA's Principles for
Promoting Greenhouse Gas Pilot and Offset Projects and the Announced GHG Emission Intensity for
TFT-LCD Industry.

• In 2015, Taiwan's EPA awarded Hannstar 3.78 million tons of carbon credits for their early action in
voluntary GHG reductions.

-------
Participation in Broader F-GHG Reduction Efforts

• HannStar is a member of Taiwan's TFT-LCD Association (TTLA). The TTLA participates on behalf of
Taiwan's LCD suppliers in the World Display device Industry Cooperation (WDICC), whose members
have agreed to 30% F-GHG emission reductions by 2020 relative to 2010 levels.

Sources

HannStar "SFs Abatement Strategy in Taiwan". Presentation by Taiwan's Industrial Technology Research
Institute (ITRI), 2004. Available at: www.epa.gov/electricpower-sf6/documents/conf04 lu.pdf.

TTLA presentation atAPEC meeting, August 2012, Taiwan.

HannStar World Display device Industry Cooperation Committee Environmental Report. Available at
http://home.jeita.or.jp/device/committee/pdf/Environmental%20Report ENG 161110.pdf.

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Suppliers Without Public Data in 2015

Samsung, BOE, China Star, and Infovision did not report public data in 2015. As a result:

• No information is available these suppliers' F-GHG emission reduction activities, including on gases
targeted, processes targeted, or approaches used.

• These suppliers do not publicly measure or verify F-GHG emissions.

• These suppliers do not have or disclose emission reduction goals and progress.

• No information is available on these suppliers' participation in broader F-GHG reduction efforts,
except for Samsung, which is subject to Korea's regulatory requirements to reduce GHG emissions.

Below, the suppliers are listed based on their 2015 market share:

Samsung

22% Market Share in 2015

Samsung's Market Share Over Time

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China Star

5% Market Share in 2015

So ^ 25%

China Star's Market Share Over Time

-1 c

o 20%

- 13 10%

ra c

B £

1
1

-Q
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