Message from the Chairman

Looking back on 2025, extreme climate disasters occurred frequently around the world, and the business community has recognized that sustainability is no longer merely a slogan, but a fundamental determinant of corporate survival. Companies have moved from making commitments to mitigation—mitigating greenhouse gas emissions, slowing global warming, and reducing the impact of extreme climate events on business operations—and are now shifting toward adaptation. Extreme weather events have become one of the greatest short-term threats to the global economy, forcing us to acknowledge that some aspects of climate change are already irreversible, long-term environmental risks are increasingly unavoidable, and climate tipping points are no longer merely hypothetical scenarios. Enterprises can no longer stop at carbon inventories, disclosure, and regulatory compliance. Instead, they must further examine whether their supply chain footprint, critical infrastructure, and dependence on energy and resources are sufficiently adaptive and operationally resilient under a future in which extreme climate becomes the norm. As a result, corporate thinking is evolving beyond carbon management, with business resilience becoming a new imperative.
To demonstrate its determination to achieve net zero by 2050, and driven by policy momentum and global sustainable supply chain trends, SAS voluntarily declared its 2050 RE100 target in 2021 and submitted its SBTi commitment letter in 2023. The Company’s greenhouse gas reduction targets, set in line with the 1.5°C global warming scenario, have been officially validated by the Science Based Targets initiative (SBTi). SAS commits to reducing absolute Scope 1 and Scope 2 emissions by 63% by 2035 from a 2022 base year, and to reducing absolute Scope 3 greenhouse gas emissions covering purchased goods and services, capital goods, and fuel- and energy-related activities by 37.5% by 2035 from a 2024 base year. To strengthen its carbon reduction pathway, SAS focuses on two key pillars: improving energy efficiency and introducing renewable energy. The Company continues to enhance its low-carbon competitiveness through low-carbon processes, energy-loss reduction and optimization, improved energy-use efficiency, and energy efficiency and circularity initiatives. In addition, SAS is accelerating its renewable energy deployment by expanding diversified investments and promoting green power procurement strategies, thereby strengthening the Group’s overall renewable energy dispatch flexibility and supply resilience. Leveraging the Group’s long-standing advantages in renewable energy, SAS has adopted a diversified renewable energy power purchase agreement strategy, steadily increasing its renewable energy usage ratio through parallel development of solar power and offshore wind power. SAS consolidates its solar power supply through its subsidiaries and, together with its Group renewable energy development company SGE, signed a joint offshore wind power procurement agreement with Copenhagen Infrastructure Partners (CIP). Supported by both solar and wind energy, the Company plans to increase its renewable energy usage ratio year by year and remains committed to achieving 100% renewable energy usage (RE100) by 2050. Looking ahead, SAS will dynamically adjust the scale of its PPA procurement based on operational needs, continue monitoring emerging energy developments, and seek cooperation opportunities with energy suppliers. For the final mile toward net-zero emissions, the Company plans to bridge any remaining gap through renewable energy certificates (RECs) and carbon credit procurement as it advances toward its 2050 net-zero vision.