Biodiversity Statement

The Company is highly concerned about the potential impacts of its activities on biodiversity and actively supports the United Nations Sustainable Development Goals (UN SDGs), including those related to Climate Action, Life Below Water, and Life on Land. The Company strictly complies with applicable laws, regulations, and policy requirements, including the Ecological and Environmental Code of the People's Republic of China, and the Opinions on Further Strengthening Biodiversity Conservation issued by the General Office of the State Council. Through proactive implementation of relevant initiatives, the Company fulfills its responsibility to protect biodiversity. As a key component of the Company’s ESG agenda, biodiversity conservation is overseen by the Board Strategy and Sustainability Committee, guided and coordinated by the ESG Leadership Group, and implemented by the ESG Working Group.

We Commit to:

Promoting Green Design and Minimizing Impacts on Biodiversity

We ensure that all products delivered comply with the environmental requirements of the Restriction of Hazardous Substances Directive (RoHS 2.0) and the Registration, Evaluation, Authorization and Restriction of Chemicals (REACH), thereby reducing their impacts on biodiversity throughout the product life cycle.

Advancing Ecological Conservation and Restoration to Strengthen Biodiversity Protection

We support the conservation and restoration of important ecosystems, including wetlands and forest areas. In collaboration with public welfare organizations and other stakeholders, we facilitate baseline assessments, risk evaluations, conservation and improvement initiatives, and ongoing monitoring of the ecosystems we support.

Collaborating with Stakeholders to Reduce Impacts on Biodiversity

We require our supply chain partners to comply with applicable environmental and biodiversity-related laws, regulations, and policy requirements. We actively collaborate with stakeholders to ensure that our operational activities do not adversely affect local ecosystems and species, thereby minimizing impacts on biodiversity.

Increasing Renewable Energy Use and Selecting Office Locations with Lower Biodiversity Impacts

We continuously promote the use of renewable energy, circular economy practices, and wastewater, waste gas and solid waste management to reduce greenhouse gas emissions. Biodiversity considerations are incorporated into the selection processes for office locations, including biodiversity risk assessments. We prioritize established industrial parks while avoiding nature reserves and biodiversity-rich areas.

Promoting Biodiversity Awareness and Training

We conduct and support biodiversity awareness and training initiatives to enhance environmental friendliness and ecological conservation awareness, fostering harmonious coexistence between people and nature.

Supporting Global Biodiversity Goals

As a company primarily engaged in chip research and design, our operations have relatively limited dependence on natural ecosystems and a comparatively low direct impact on biodiversity. Nevertheless, we actively support industry initiatives and are committed to achieving the following goals by 2050: Net Positive Impact (NPI), No Net Loss (NNL), and No Net Deforestation (NND).

Net Positive Impact (NPI): A commitment aligned with the Post-2020 Global Biodiversity Framework. It aims to stabilize biodiversity impacts across the Company’s value chain by 2030, support the recovery of natural ecosystems over the following two decades, and achieve a net positive outcome for biodiversity by 2050, thereby contributing to the vision of the Convention on Biological Diversity of living in harmony with nature by 2050.

No Net Loss (NNL): A principle under which impacts on biodiversity are balanced at an appropriate geographic scale (e.g., local, landscape, national, or regional) through the application of the mitigation hierarchy: avoid, minimize, restore, and offset.

No Net Deforestation (NND): Also referred to as “Net Zero Deforestation.” It involves compensating for current forest loss through future reforestation efforts. While limited forest clearing may occur within a defined implementation period, the overall objective is to achieve a net-zero balance in forest loss.