MacroHI Sustainable Goals and 2024 Highlights

Mid- and Long-term Sustainable Goals

As a Certified B Corporation, MacroHI strives to 'use business as a force for good.' Focusing on 5 of the 5 United Nations Sustainable Development Goals (SDGs), we are committed to becoming the best company "for" the world.

SDGs Sustainable Strategy - Highlights and Goals

	Key Results	Future Goals
SDG 3 Good Health and Well-being	✔Provide free scalp care products for severe dermatitis and psoriasis patients ✔Free scalp check all around Taiwan	Continuing to promote scalp health for all through R&D and brand power
SDG 10 Reduced Inequalities	✔Shampoo bottles feature braille bottle design for the blind ✔Organized 638+ scalp health/mindful activities for caregivers, benefiting 37,520+ people ✔Donated NTD$4.1+million dollars for charity sales in remote villages	Brands invest 1% of its annual revenue in caring for the disadvantaged, such as caregivers and education in remote areas
SDG 12 Responsible Consumption and Production	✔Cradle to Cradle (C2C) Silver Level Certification ✔BS8001 Circular Economy Level 4 (Optimal) Certified ✔131,015+kg CO2e reduced by using PCR recycled plastic to make shampoo bottles ✔5 products ISO 14067 carbon footprint certified ✔3,800+ EC packaging box reduced ✔12 Stores become Circular Packaging Returning Points	Provide circular and sustainable scalp care solution 50% bottles from PCR recycled plastic in 2025 Cradle to Cradle (C2C), Version 4.0 Silver Level Certification​ in 2026 More than 3% carbon reduction in flagship products by 2027
SDG 13 Climate Action	✔​PAS 2060 Carbon Neutrality in 2024 ✔70% renewable energy used by headquarter since 2024 ✔30%+ renewable energy used by juliArt Da’an Direct Store since 2024 ✔4%+ reduction in office electricity consumption in 2024	​ISO14068-1 Carbon Neutrality by 2025 70% Renewable Energy at juliArt Da’an Direct Store by 2026；100% Renewable Energy at Headquarters by 2030
SDG 17 Partnership for the Goals	✔31+ corporate partners joined our “Caregiver’s Alliance” ✔450+ salons joined our charity campaign raising funds for education in remote areas	To create positive impact by connecting internal, external, and upstream/downstream partners to participate in sustainability initiatives

8 Key Stakeholders of MacroHI

Consumers	Business Customers	Employees	Agents/Distributors
Suppliers	Business Partners	Community / NPOs	Banks / Investors

9 Material Issues in Sustainability

We collected and analyzed 1,177 internal and external partners' "Sustainability Questionnaires" and referred to the sustainability industry trends, and finalized the list or material issues by the Sustainability Committee.

1. Sustainable Products and Services

2. Sustainable Packaging and Circular Economy

3. Customer Health and Safety

4. Responsible Procurement

5. Worker's Health and Safety

6. Sustainability Strategy

7. Operational Eco-Efficiency

8. Corporate Citizenship and Philanthropy

9. Information Security and Privacy

Sustainability Materialiy Matrix

MacroHI B Corp Sustainability Impact Highlights and Future Goals

	2023 Highlights	Future Goals
Environment	✔2024 PAS2060 Carbon Neutrality ✔BS8001 Circular Economy Level 4 (Optimal) Certified ✔70% renewable energy used by headquarter ✔30% renewable energy used by juliArt Da’an Direct Store ✔131,015kg CO2e reduced accumulatively by using PCR recycled plastic to make shampoo bottles ✔5 products ISO 14067 carbon footprint certified ✔3,800+ EC packaging box reduced ✔12 Stores become Circular Packaging Returning Points	2025~2027 ✔50% Bottles from recycled plastic ✔FSC Certified paper packaging ✔E-commerce Reusable Boxes ✔Product Carbon label ✔C2C circular economy (silver) certification ✔2025 ISO14068-1 Carbon Neutrality ✔70% renewable energy used by juliArt Da’an Direct Store by 2026 2030 100% Renewable Energy used by headquarter
Community	✔ 638+ scalp health/mindful activities ✔ Engaged 31 business partners joining our "Caretiver's Alliance" ✔ Invited business partners to plant 500 trees together ✔Donated NTD$4.1+million dollars for charity sales in remote villages	✔5% revenue committed in CSR and sustainability ✔10+ activities benifiting 1200+ people annually, inviting 50+ organizations to join "Caregiver's Alliance"
Customers	✔Provide free scalp care products for severe dermatitis patients ✔Shampoo bottles featuring braille bottle design for the blind	✔Develop products for scalp care relief for patients
Workers	✔16hrs/year Paid volunteer leave, paid vaccination leave during pandemic ✔60% Female managers & workers ✔Enhanced child care benefits ✔4-6PM workout time each Friday, Sports competition rewards	✔Build a healthy, passionate, creative workplace where dreams come true
Governenace	✔Sustainability mission stated in company Charter ✔Established SDGs Roadmap ✔100% Participation of Sustainability Committee in Board of Directors ✔Held 3 SDGs Consensus Camps	✔5% of every of every worker's (employees and managers) performance goals connected to ESG

2024 Labor Law Compliance and Improvement Report

MacroHI Co., Ltd. is committed to safeguarding employee rights and adhering to labor regulations. Following labor inspection penalties in 2022 and 2023 due to non-compliant attendance records, we swiftly reviewed and enhanced our processes, boosting management efficiency and compliance. As a result, there were no labor violations or penalties from authorities in 2024.

2022 Labor Inspection Incident and Improvement Measures

Improper job rotation scheduling led to consecutive workdays in some monthly attendance records, resulting in a guidance letter and a NT$40,000 fine from the New Taipei City Labor Inspection Office. In response, we promptly reassessed our internal management and implemented the following measures:

• Internal Workshops: Engaged supervisors and employees in discussions on attendance issues and management challenges to foster consensus.

• Revised Attendance Policy: Strengthened the attendance management system to align with legal standards.

• Digital Management Implementation: Introduced an HR system with automated leave and attendance checks to enhance management efficiency.

2023 Labor Inspection Incident and Improvement MeasuresEmployee leave arrangements caused continuous attendance records on shift schedules, leading to a guidance letter and a NT$120,000 fine due to misinterpretations of labor regulations. We conducted a thorough review and further reinforced our approach:

• Enhanced Training: Incorporated labor law education into monthly meetings and training sessions.

• New HR System Deployment: Integrated leave, attendance, and payroll verification mechanisms to ensure compliance and mitigate risks.

• Work Hours Monitoring: Assigned dedicated staff to regularly audit working hour data for accuracy.

• Compliance Unit Established: Formed a specialized team to monitor regulatory updates, embed them into company policies, and report compliance status to management regularly.

2024 Compliance and Continuous Improvement Results

Two years of dedicated improvements resulted in zero labor violations or penalties in 2024, reflecting the significant effectiveness of our management and operational enhancements. Looking ahead, we will continue to track regulatory changes, ensuring compliance and employee welfare advance together, while fostering a safe, compliant, and fulfilling workplace.