Following the company's "Sustainable Development Code", the Business Strategy Development Center is responsible for integrating and promoting corporate sustainable development. It is the highest-level sustainable development decision-making center within the company and has established a "Greenhouse Gas Inventory Implementation Committee" authorized by the board of directors. The deputy general manager of the Business Strategy Development Center is responsible for convening the implementation committee and forming a parent company and branch verification team. The company actively promotes the sustainable development of the enterprise, and jointly reviews the company's core operating capabilities with senior executives from different fields to formulate medium- and long-term sustainable development plans.

The Company’s Board of Directors actively participates in sustainable development governance and ensures that the Company complies with environmental, social and governance (ESG) standards and implements its long-term sustainable development vision by setting management policies, strategies and objectives.

Management approach:

The Board of Directors regularly reviews the company’s sustainable development policy to ensure that operating strategies are consistent with international standards (such as GRI, TCFD, SBTi) and government regulations, and guides the executive team to implement sustainable action plans.

Strategy and Goals:

The Board oversees and approves key sustainability strategies, such as carbon neutrality goals, supply chain responsibility management, and social impact enhancement, and sets short-, medium-, and long-term performance indicators to ensure that implementation results are consistent with the corporate mission.

Performance review:

A special meeting on sustainable development is held at least once a year to review ESG status and ensure effective implementation of strategies. If major risks or market changes are discovered, the board of directors will adjust its strategy in a timely manner to ensure the company's sustainable competitiveness.

Through effective governance mechanisms, the board of directors ensures that sustainable development is not only a part of corporate compliance, but also an important strategy to enhance corporate value and long-term shareholder interests.

The company has established risk assessment management procedures, and based on the assessed risks, relevant risk management policies or strategies are formulated as follows:

Environment

1. The company's main markets are the United States and the European Union, which require products to comply with environmental regulations. Therefore, the company has obtained the environmental verification of "ISO14001" and will subsequently obtain certification on a regular basis.
2. The company began to inventory greenhouse gas emissions in accordance with ISO 14064 and examine the impact faced by the company's operations.
3. The annual planning internal audit plan focuses on the company's compliance with relevant environmental laws and regulations, and checks that each operating process complies with the regulations.

Society

Fire drills and industrial safety education and training are held regularly every year to cultivate employees' emergency response and self-safety management capabilities.

Governance

1. Compliance with social and economic laws: By establishing a governance organization and implementing an internal control mechanism, we ensure that all personnel and operations of the company comply with relevant laws and regulations.
2. Strengthen the functions of directors: Plan relevant training topics for directors, provide directors with the latest regulations, system developments and policies every year, and insure directors’ liability insurance to protect them from lawsuits or claims for compensation.
3. Stakeholder communication: Establish various communication channels, communicate actively, and reduce opposition and misunderstandings. An investor mailbox is set up, and the spokesperson handles it and is responsible for responding.