Environmental and Social Policy Statement

By the Board of Directors of Yunneng Wind Power Co., Ltd.

 

1. Introduction

The development of offshore wind farms (OWFs) in Taiwan has been proposed to compliment the energy diversification plan and actively contribute to the government's goal towards greenhouse gas reductions, availability of low carbon energy sources and green industries. In support of the Taiwanese government’s renewable energy policies, Yunneng Wind Power Co., Ltd. (hereinafter referred to as the “Company”) has developed, constructed and is operating the Yunlin Offshore Wind Farm project (hereinafter referred to as the “Project”) as a contributor to reduce Taiwan’s dependency on conventional energy sources.

With its Code of Conduct, the Company has committed itself to a high level of social responsibility. All ethical and legal requirements applicable to the Company in the performance of its activities shall be complied with. Essential aspects to which the Company wishes to draw a special attention such as working conditions as well as health and safety are already part of this voluntary commitment. This voluntary commitment also includes the protection of the environment and the dedication to take care of the people, who participate in the Project in different roles and positions. In view of the particular challenges the Project operates in, the Company further declares a separate commitment to address environmental and social issues.

The Environmental and Social (E&S) Policy Statement (hereinafter referred to as the “Policy Statement”) has been established to ensure the environmental and social sustainability of the Project.

This Policy Statement has been initially approved by the Company’s Board of Directors on 12-Nov-2019 and has, following the completion of the Project’s construction activities, been updated and approved by the Company’s Board of Directors on 30-May-2025.

2. Statement of Purpose and Scope

The Project is located off the coast of Townships Sihu and Kouhu in Yunlin County, Taiwan. The Project covers an area of approximately 82km² and is located approximately 8 to 17km from shore, where the water depths range between approximately 10 - 35m. Hereby the Project is located at least 3,000m from the Major Wildlife Habitat of the Taiwanese White Dolphin. The Project is also located away from any major shipping channels and relevant development areas.

The Project consists of eighty (80) SG-8.0-167 wind turbine generators (WTGs) with a total installed capacity of 640MW. The WTGs are directly connected to two (2) onshore substations via two (2) export cable corridors, each containing six (6) export cables. The Project has an equal allocation of forty (40) WTGs for the northern substation and export cable corridor, and 40 WTGs for the southern substation and export cable corridor. The power voltage is stepped up from 66kV to 161kV at the onshore substations, from where all generated electricity is transmitted via 161kV underground land cables to two (2) existing substations of Taiwan Power Company (TPC) located in the Townships of Taixi and Sihu respectively.

After completion of the construction activities, the following activities remain during the operation and maintenance (O&M) period:

• surveys and monitoring

• operation and maintenance

This Policy Statement is formulated based on the Project’s activities and related impacts defined in the Project’s Environmental and Social Impact Assessment (ESIA) report and covers the environmental and social dimensions of the Project’s sustainable O&M activities.

3. Commitments to Environmental and Social Sustainability

The Company hereby undertakes to comply with the following requirements in order to fulfil the objectives mentioned in the Company’s Code of Conduct.

The Company commits to comply with applicable local environmental and social legislation and international requirements such as Equator Principles (EP), International Finance Corporation Performance Standards (IFC PS) and World Bank Group (WBG) Environmental, Health and Safety (EHS) Guidelines.

The Company also commits to comply with the applicable laws and national regulations, including but not limited to the following:

• Environmental Impact Assessment Act

      。Environmental Impact Assessment Enforcement Rules

      。Standards for Determining Specific Items and Scope of Environmental Impact Assessments for Development Activities.

      。Regulations Governing Environmental Impact Assessments for Development Activities

• Coastal Zone Management Act

      。Coastal Zone Management Enforcement Rules

• Waste Disposal Act

      。Waste Disposal Act Enforcement Rules

• Water Pollution Control Act

      。Water Pollution Control Act Enforcement Rules

• Noise Control Act

      。Noise Control Act Enforcement Rules

• Air Pollution Control Act

      。Management Regulations for Construction Project Air Pollution Control Facilities

• Occupational Safety and Health Act (OSHA)

      。Enforcement Rules of the Occupational Safety and Health Act

      。Facility Rules of the Occupational Safety and Health Act

      。Management Rules of the Occupational Safety and Health Act

      。Occupational Safety and Health Education and Training Rules

      。Occupational Safety and Health Marketing Guideline

      。Labour Health Protection Rules

      。Safety Standards of Machinery and Equipment

      。Safety Rules of Lifting Machineries

      。Labour Safety Rules for High Pressure Gas

      。Construction Safety and Sanitation Standards

      。Regulations for Safety Inspection of Hazardous Machines and Equipment

      。Regulations for Safety Inspection of Existing Hazardous Machines and Equipment

      。Structure Standards for Fixed Crane Safety Inspection

      。Structure Standards for Mobile Crane Safety Inspection

      。Safety Inspection Standards for Lifting Machineries

      。Safety and Health Facility for Dock Loading and Unloading Regulation

      。Standards of Protection Measures for Labour Work at Height

      。Structure Standards for Gondola Safety Inspection

      。Prevention Standards for Abnormal Pressure Hazards

• Act for Protecting Workers of Occupational Accidents / Labor Occupational Accident Insurance and Protection Act

      。Enforcement Rules of Protection for Workers Incurring Occupational Accidents Act/ Enforcement Rules of the Labor Occupational Accident Insurance and Protection Act

      。Occupational Disaster Prevention and Compensation Measures

• Labour Inspection Act

      。Enforcement Rules of the Labour Inspection Act

      。Definition of the potential of imminent danger to labour prescribed in article 28 of the Labour Inspection Act

• OSHA Offshore Wind Farm Operation Safety Guideline

• International Convention for the Prevention of Pollution from Ships (MARPOL)

• Fisheries Act

• Fishermen Association Act

• Fishery Compensation Basis for Offshore Wind Farms

• National Property Act

• Regulations on Real Estate Appraisal

• Land Expropriation Act

• Regulations Governing the Use and Supervision of Electricity Development Assistance Funds (EDAF)

In addition, the Company commits to comply with

• applicable treaties mentioned in the Environmental and Social Impact Assessment (ESIA) report,

• the applicable Environmental and Social Due Diligence (ESDD),

• the Company's Code of Conduct, and

• the Company’s Common Terms Agreement (CTA).

Furthermore, the Company commitments

• to publish the ESIA report on the Company’s website (https://www.owf-yunlin.tw/)

• to be proactive in environmental and ecological education to increase the environmental and ecological awareness of the society

• to implement the Stakeholder Engagement Plan (SEP) firmly and to update the SEP according to the actual situation on a regular basis

• to execute the Livelihood Restoration Plan (LRP) firmly in order to maintain the sustainable living of Project Affected Persons (PAPs)

• to support local communities depending on their actual needs

• to follow the offshore and onshore traffic management plans to ensure the safety of existing users

• that all activities of the Project follow the Health, Safety and Environmental (HSE) Plan of the Project

4. Implementation, Monitoring and Evaluation

The management of the Company commits to fulfil the above-mentioned commitments and is responsible for the preparation, development and regular update of the relevant documents. Therefore, the Company has developed a compliance management system to address the protection of the environment and social matters, and to implement the voluntary commitments of this Policy Statement in its daily processes. In line with the requirements of the compliance management system, the Company shall implement further documents and mechanisms, to review its processes and documents, in order to control the compliance with the relevant regulations and the aforementioned commitments as well as to report the related results.

Any revision of the Policy Statement must be approved by the Company's Board of Directors.

5. Public Information and Disclosure

Disclosing and communicating this Policy Statements to all employees, suppliers, contractors, visitors and other interested parties of the Project, is a way to ensure transparency, accountability and effectiveness of the commitments of this Policy Statement.

The Company shall publish the Policy Statement next to the Code of Conduct on the Company's website (https://www.owf-yunlin.tw/) for easy access by stakeholders and the general public.

The Company shall also communicate this Policy Statement to all employees, suppliers and contractors by appropriate means to ensure that this Policy Statement is disclosed to all of them.

*****

This Policy Statement is made in English. The undersigned Xian-Shuen Koo (顧賢鉉), chairperson of the Company, has signed the Policy Statement on behalf of the Board of Directors on 30-May-2025.