We are ensuring sustainable ways of working in all operations through our Green Factory concept. The program drives sustainability actions through yearly assessments and good practice sharing at our production sites.

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To reach our greenhouse gas emission goals, we are implementing both short-term and long-term measures. In the short-term, we are increasing the amount of fossil-free energy in our operations through Energy Attributes Certificates (EACs). In the long term, we are focused on reducing emissions through energy efficiency measures, replacing oil and gas in our operations with more sustainable alternatives, and installing our own electricity generation systems. One notable example of our efforts is in Langfang, where the installation of a heat/cooling pump at the end of 2020 has reduced fossil gas consumption by 90%. This has led to a reduction in CO2 emissions by over 100 tons per year, while also achieving yearly cost savings of 400 KCNY.

The Sustainability Analyzer, an upgrade to the existing Productivity Analyzer, now helps customers to reduce energy consumption and carbon emissions by providing a detailed analysis of tool usage and its operational impact. It incorporates sustainability metrics, including energy input at the spindle during cutting processes and energy costs, allowing precise calculations of energy savings and CO2 emission reductions.

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A Life Cycle Assessment (LCA) is conducted on a select product range as a proof of concept to evaluate the environmental effects across the product life cycle, applicable to indexable holders and inserts. It will be third-party verified. The project is set to conclude in June 2025, with plans to integrate the methodology across the entire organization in 2026.