Universal Scientific Industrial

We design green products that meet global regulations based on the four aspects of Green Product Eco-design and introduced a professional green value chain management platform Green Parts Aggregations & Reporting System (GPARS) and Green Parts (GP) database to manage the materials we use in our products and whether they meet the latest relevant requirements that include but are not limited to Hazardous Substance Free (HSF), RoHS, REACH, WEEE - Sustainable Raw Materials and USI Green Environmental Protection Products Requirements. For substances without feasible substitutes at this stage, the Company has also formulated a Banned Substance Elimination Plan^(1~2). Our suppliers must provide Environmental Hazard Non-Use Declaration, material composition tables, and verification reports to ensure that the purchased parts and materials are 100% in compliance with company specifications.

The trend toward green products is inevitable. Industries could face upcoming challenges only by establishing a long-lasting sustainable green supply chain, our management process as detailed in the Sustainable Supply Chain section. USI integrates upstream and downstream partners to generate maximum environmental benefits from the entire production process, including product design, material procurement, manufacturing, transportation, packing, selling, and product recycling through a comprehensive and transparent management system. The systematic management of our global green product supply chain, strengthen cooperation with supply chain partners, and achieve a green supply chain.

GPARS System

Note:
1. USI controls the MOAH (Mineral oil aromatic hydrocarbons, from 1 to 7 aromatic cycles) and MOSH (Mineral oil saturated hydrocarbons, from 16 to 35 aromatic cycles) and been defined in controlled substances list of Green Product Specification from 04/01/2024.
2. The threshold for Tetrabromobisphenol-A and Medium-chain Chlorinated paraffins is below 1,000 ppm. USI plans ban them from 01/01/2025 and ban their use according to the EU announcement date.

We follow the IECQ QC080000 Hazardous Substances Process Management System Standard, and establish green parts/material management and control procedures to achieve products that meet international and customer standards for no hazardous substances.

USI supplier must confirm all provided components, non-BOM and packaging materials, and report back to USI via GPARS or Questionnaire methods for any containing hazardous substances. The main management requirements are as follows:

EU Directive - RoHS

• Restriction of Hazardous Substances (RoHS) directive mainly regulates the material and technical standards of electronic and electrical products, requiring that the use of lead, mercury, cadmium, hexavalent chromium, PBB, PBDE, DEHP, BBP, DBP, and DIBP in electronic products is prohibited in order to achieve environmental and human health the purpose of protection.

EU Directive - REACH

• Registration, Evaluation, Authorization, and Restriction of Chemicals (REACH) is a statutory ordinance that compulsory registration, evaluation, permitting, and monitoring of chemicals entering the EU market. The bill raises the quality requirements and entry barriers for products from different countries and regions to enter the EU.
• For the candidate list of Substances of Very High Concern (SVHC) in REACH, suppliers must confirm all provided materials for any SVHC substances at/or above the 0.1% weight by weight (w/w) concentration and ban the use of Annex XVII list of dangerous substances.
• For current SVHC candidate list, please visit ECHA: https://echa.europa.eu/candidate-list-table
• For current Annex XVII list, please visit ECHA: https://echa.europa.eu/substances-restricted-under-reach

California Proposition 65

• California Proposition 65, officially known as the Safe Drinking Water and Toxic Enforcement Act of 1986. The proposition protects the state's drinking water sources from being contaminated with chemicals known to cause cancer, birth defects or other reproductive harm, and requires businesses to inform Californians about exposures to such chemicals.
• For current Proposition 65 list, please visit OEHHA: https://oehha.ca.gov/proposition-65/proposition-65-list

Toxic Substances Control Act (TSCA)

• The Toxic Substances Control Act (TSCA) is a U.S. law that was implemented by the U.S. Environmental Protection Agency (EPA) in 1976. The law regulates the introduction of new or existing chemicals. The main goal is to evaluate and supervise new commercial chemicals before they enter the market, in order to regulate the chemicals that existed in 1976 and pose unreasonable risks to health or the environment, and to regulate the distribution and use of these chemicals.
• TSCA prohibits the production or import of chemicals that are not on the TSCA list or subject to exemptions. Chemicals listed in TSCA are called Existing Chemicals, while chemicals not listed are called new chemicals. Manufacturers must submit a pre-manufacturing notice to the EPA before manufacturing or importing new chemicals for commercial use.
• For current TSCA control list, please visit TSCA: https://www.epa.gov/chemicals-under-tsca

Per-and Polyfluoroalkyl Substances (PFAS)

• PFAS refers to any chemical substances containing at least one perfluorinated methyl group (-CF₃) or a perfluorinated methylene group (-CF₂-), and such substances are equipped with the waterproof and oilproof characteristics while exhibiting excellent chemical resistance and thermal resistance. They are widely used in adhesives, coating materials, inks, and plastic materials. The carbon-fluorine bond is extremely strong and stable, and it cannot be disintegrated by the environment, such that it may eventually become a permanent organic pollutant.
• The EU has announced the PFAS restriction proposal in 2023, and such proposal will be reviewed in 2024, and it is expected to be promulgated and implemented no later than 2025-2027.

In addition, the partial list of banned substances and requirements, please refer to the attached table:

Partial Selection of Restricted Environmentally Hazardous Substances Contained in Products

We developed our Chemical Management Procedure in line with the UN Strategic Approach to International Chemicals Management (SAICM), so chemicals are controlled and used in ways that minimize adverse impacts on the environment and human health. The key to our Procedure is a comprehensive review of substances and all applicable chemical regulations and use restrictions. We grade chemicals according to environmental and safety risks and constantly update them into our database. As part of source control, chemicals must be checked against the database, reviewed, and filed before they can be procured and subsequently introduced into our manufacturing process. For the transportation, loading and unloading, storage, handling, labeling, use, pollutant management and emergency measures of chemicals, relevant operators are required to undergo corresponding pre-job and regular training, and their related records must also be kept and managed.

Chemical Safety Management Process

To made stakeholders further aware of the importance of environment protection and applied the correct environmental concepts to various steps in production process (i.e., the product planning, raw material control and GHG emission reduction). We keep communicating with employees, suppliers and contractors regarding our EHS-associated principles, knowledge, and requirements. The e-learning courses of green education were added to USI's internal training that informed the employees of GP-related regulations, requirements, operating procedures, and eco-friendly materials. In 2023, the total of all facilities' green education training was 10,970 hours.