Arcadyan adopts the Product Life Cycle (PLC) as a core approach to systematically assess potential environmental impacts across all stages, from raw material procurement, manufacturing, packaging and transportation, and product use to end-of-life recycling and treatment. The company incorporates Cradle to Cradle design principles and circular economy concepts to promote a sustainable product model based on “Manufacture, Use, and Recycle.” Starting from product design, Arcadyan seeks to improve resource efficiency while reducing resource consumption, carbon emissions, pollution, and waste generation. Through Eco-Design, life cycle assessment, and the integration of innovative technologies, the company continues to reduce the environmental impacts of its products while enhancing their sustainability value and market competitiveness.
At the early product design stage, Arcadyan integrates customer needs, functionality, energy efficiency, and regulatory requirements while strictly adhering to international standards such as the Energy-related Products Directive (ErP), RoHS, REACH, and WEEE. These requirements are implemented throughout design, development, verification, and operations to mitigate compliance risks and meet market demands. Arcadyan has maintained a flawless record with zero non-compliance on product information, labeling, or voluntary codes since 2006. In 2025, the Company had no product-related legal violations or major litigation exceeding NT$2 million related to health and safety, demonstrating its strong commitment to product compliance, environmental regulations, and customer responsibility.
Green Product Raw Material Policy
In 2025, Arcadyan published its Green Product Raw Material Policy. Guided by the principles of "Green Innovation and Sustainable Development," the policy seeks to minimize environmental and social impacts of raw materials across the product lifecycle through compliant, transparent, and continuously improving methods. Built on five core principles- regulatory and customer compliance, hazardous substance control and reduction, sustainable material applications, supply chain collaboration, and training and information disclosure- the policy serves as the strategic foundation for advancing lowcarbon, recycled, and recyclable materials while promoting the circular economy.
Arcadyan’s Sustainable Product Development Journey
Arcadyan's product design is guided by four core pillars: using low-toxicity materials, achieving high energy efficiency with low power consumption, enabling easy disassembly and recycling, and extending product lifespans. In response to international sustainability trends, stakeholder expectations, and customer needs, the Company integrates eco-friendly design into product development to minimize environmental impacts and enhance overall product sustainability and market competitiveness.
Product Life Cycle Assessment
Arcadyan has institutionalized product environmental performance management in its development workflow. The Company conducts Life Cycle Assessments (LCA) in accordance with ISO 14040 and ISO 14044 standards, referencing the EU Product Environmental Footprint (PEF) and IT Equipment Product Category Rules (PCR) to establish consistent and comparable environmental baselines. These assessments cover 27 ecological impact categories, including climate change, human toxicity, freshwater ecotoxicity, mineral resource depletion, and fossil resource depletion. Cross-departmental reviews of the results feed insights back into material selection, energy-efficient design, manufacturing improvements, and end-of-life recycling, forming the foundation for low-carbon design and product environmental optimization.
In 2025, products for which Arcadyan conducted full Life Cycle Assessments (LCA) and obtained third-party verification at customer request accounted for approximately 7% of total shipping volume. This figure represents LCA calculations that have completed external verification and uses a different statistical scope from the LCA and PCF inventory coverage mentioned in Section 3.2.1. Through product life cycle assessment and third-party verification, Arcadyan improves product environmental transparency and supports low-carbon development and sustainable design.
Product Eco-Design
In 2018, Arcadyan obtained the ISO 14006 certification for incorporating ecodesign into its Environmental Management System. Following the four key steps of goal and scope definition, life cycle inventory analysis, impact assessment, and interpretation, the Company systematically collects product environmental and carbon emission data to optimize design and manage environmental performance. For example, router design optimizations reduced product carbon emissions by 2% to 5% compared to the previous generation, earning the TÜV Green Product Mark. Similarly, set-top box products achieved a carbon reduction of approximately 2 kg CO2e (2% to 5% decrease) and also secured carbon footprint verification.
Sustainable Material Traceability and Certi cation Mechanisms
To enhance reliability and transparency, Arcadyan is establishing a comprehensive traceability and certification system for recycled materials. For Post-Consumer Recycled (PCR) materials used in products, suppliers must provide verifiable sources, recycled content declarations, and third-party validation. Currently, the focus is on PCR plastics in product chassis, covers, and components. High-proportion PCR ABS and PC/ABS have been introduced in select enclosures and certified by TÜV Rheinland under ISO 14021, ISO 14040, and ISO 14044 standards. Going forward, Arcadyan will expand traceability to include more PCR plastics, PCR aluminum, and low-carbon materials to improve sustainable material disclosure.
Advancing material circularity and reuse is a key priority for Arcadyan. The Company actively develops high-recyclability materials and increases the proportion of recycled content in its products. Since 2015, Arcadyan has incorporated Post-Consumer Recycled (PCR) plastics into product components, achieving recycled content levels of 65% to 99% in select parts. For ABS and ABS+PC materials, the Company has adopted interlocking snap-fit designs in place of traditional screws, which reduces screw usage while enhancing structural integrity and recycling efficiency.
In 2025, Arcadyan integrated recycled plastics into 71% of its shipped products, slightly below the 75% target. The shortfall was mainly due to regional differences in recycled material acceptance, shifting product mixes, and evolving customer requirements. Arcadyan is strengthening recycled plastic validation, quality management, and customer engagement while promoting the benefits of Post-Consumer Recycled (PCR) materials to gradually increase the proportion of recycled content across markets.
To minimize packaging material consumption and optimize shipping efficiency, Arcadyan focuses on reducing carbon emissions in the logistics phase. The Company prioritizes recycled materials, recycled paper, and Forest Stewardship Council (FSC) certified resources, along with vegetablebased inks. In 2025, recycled materials in product packaging reached 96.5%, recycled paper packaging exceeded 88% of shipped products, and FSC-certified products accounted for approximately 78% of total shipping volume, reflecting progress in low-carbon packaging and responsible sourcing.
Arcadyan strengthens packaging material traceability and responsible sourcing through global certifications at its manufacturing centers. The Vietnam manufacturing center has successfully obtained FSC® Chain of Custody (CoC) certification, covering paper-based packaging materials such as packaging paper, gummed paper, adhesive labels, and user manuals. This certification enhances material sourcing governance, supply chain traceability, and quality control, ensuring compliance with responsible forest management and recycled material requirements.
Design for Disassembly, Repairability, and Resource Ef ciency
Arcadyan integrates disassembly and refurbishment considerations into product structural design. By adopting snap-fit structures, low-screw designs, and specialized disassembly fixtures, the Company minimizes disassembly complexity and enables quick, damage-free housing removal during maintenance and refurbishment. This approach reduces labor hours, component sorting efforts, and the risk of damage from excessive force. Depending on product aesthetics and mechanical constraints, Arcadyan applies various solutions such as snap-fit release through ventilation holes, specialized tools, and spring-loaded ejection mechanisms to improve disassembly efficiency and refurbishment throughput.
These advanced structural designs and custom fixtures drastically shorten disassembly, repair, and refurbishment times without compromising structural strength or cosmetic integrity, making the reuse of returned products highly viable. To maximize recycling yields, the entire housing architecture prioritizes mono-plastic materials over mixed substrates, completely removing the recycling bottlenecks of composite materials and accelerating downstream sorting and recovery efficiency.
In 2025, Arcadyan applied this circular design to five product mechanical structures. By incorporating low-screw counts, snap-fit mechanisms, and customized disassembly fixtures, the Company enhances repair, refurbishment, and recycling potential from the R&D stage, extending product lifespans and reducing resource consumption to advance eco-design and circular economy principles.
Material Simpli cation and Recycling Ef ciency Optimization
Arcadyan proactively streamlines product composition by prioritizing mono-material designs and minimizing mixed substrates, directly optimizing downstream disassembly, sorting, and recycling efficiency. Packaging innovations include printing user manuals directly onto outer boxes to eliminate paper waste, alongside replacing conventional plastic cable ties with paper twist ties to secure accessories, successfully driving single-use plastic reduction.
Intelligent Power Management
During the product use phase, Arcadyan’s proprietary Arcadyan Intelligent Power Management (AIPM) system utilizes intelligent microcontrollers (MCUs) to precisely control product operating modes. By automatically detecting load conditions, AIPM dynamically adjusts power output and optimizes energy efficiency. In 2025, approximately 4.3% of products supplied to key customers incorporated the AIPM solution. Test results indicate that products equipped with AIPM can reduce overall energy consumption by approximately 20%–30%, helping improve energy efficiency during product use and reduce carbon emissions across the product life cycle.
Closed-Loop Material Recovery and Product Lifecycle Optimization
Arcadyan collaborates with customers and supply chain partners to build a closed-loop recycling model for post-consumer products. The process includes disassembly, sorting, crushing, purification, pelletization, and reintegration into new products. In 2025, this system recovered 4,915 kilograms of waste plastics, producing high-quality Post-Consumer Recycled (PCR) resin and achieving a carbon reduction of approximately 35.4 metric tons of CO2e. This approach reduces reliance on virgin plastics and lowers greenhouse gas emissions from raw material extraction and processing. Arcadyan's closed-loop recycling framework covers seven key stages: market collection, disassembly, crushing, material purification, pelletization with property testing, injection molding, and product remanufacturing. This " recovery–regeneration–reapplication" process maximizes resource circulation and accelerates green transformation across the supply chain.
Six Stages of Closed-Loop Recycling and Reuse Process:
Arcadyan's dedicated return management unit handles comprehensive repair and refurbishment operations to extend product lifespan and reduce resource consumption. In 2025, the unit refurbished 17,008 products through component repair, functional testing, and reassembly, achieving a carbon reduction of approximately 1,020.5 metric tons of CO2e. Arcadyan also refurbishes power supply units (PSUs) and cables to maximize accessory resource efficiency. In 2025, over 22,600 accessory units were refurbished, achieving a 70% reuse rate and reducing approximately 23.8 metric tons of CO2e emissions. These reuse workflows minimize environmental impacts across raw material procurement, manufacturing, and packaging, embedding circular economy and low-carbon product stewardship.
