Does the company establish a governance structure to achieve sustainable development, and set up a dedicated (part-time) unit to promote sustainable development, which is authorized by the board of directors to handle senior management, and supervised by the board of directors?

Does the company conduct risk assessments on environmental, social and corporate governance issues related to company operations according to the principle of materiality, and formulate relevant risk management policies or strategies?

This disclosure covers the sustainability performance of the main business locations from January 2023 to December 2023. The boundary of risk assessment is primarily the Company, including business locations in Taiwan, China, other parts of Asia, the Americas, and Europe.
The Sustainability Committee conducts analysis in accordance with the materiality principle in the sustainability report, communicates with internal and external stakeholders, reviews international/national research reports and literature, integrates data from various departments, evaluates material ESG issues, and formulates effective identification , assessment, control, and supervision of risk management policies, and the adoption of specific action plans to reduce the impact of related risks.

Environment Issues

Does the company establish proper environmental management systems based on the characteristics of their industries?

Does the company endeavor to utilize all resources more efficiently and use renewable materials which have low impact on the environment?

The Company has adopted the ISO 50001 energy management system and passed third-party verification (certificate expiry date: 2023/1/12 - 2026/1/12) to systematically manage the Group's energy consumption and increase risks and opportunities of energy efficiency. The Company sets an annual energy-saving target of 4.2% based on the previous year, and the actual energy-saving rate in 2023 is 6%. The Company continues to promote the implementation of energy-saving technical transformation projects. In addition, the Company also actively develops new technologies for energy conservation and emission reduction, new products, and new business models to fully explore the potential of energy conservation, and to promote and improve the Company’s transformation and increase revenue, and ultimately, continuously optimizes the Company's energy-saving and carbon-reduction system and achieves the goal of continuous improvement. The Company signed a memorandum of cooperation with CDBC Capital to jointly establish Kai Hung Energy Co., Ltd., hoping to lead the way in investing capital into the sustainable green energy industry, provide much-needed green power for enterprises, and create relatively stable investment returns. In 2023, the Company's mainland China region consumed a total of 7,818,392,092 kWh electricity, of which the renewable energy consumption reached 5,058,490,071 kWh, accounting for approximately 65%. Data on other regions will be disclosed in the Sustainability Report after the collection is completed. The raw materials used by the Company are in compliance with the EU RoHS, REACH, and halogen-free regulations. The Company continues to work with international customers to disclose chemical safety information on the processes used by the assembly plants, and establish a list of prohibited substances to complete the replacement of customer products with green chemicals. In terms of green manufacturing, the company requires the company to conserve resources, explore the development of waste reduction and reuse technologies, and implement a zero-waste project between the company and suppliers to maximize the economic benefits of recycling.

Does the company assess the potential risks and opportunities of climate change on its present and future operation, and take measures to respond to climate-related issues?

Does the company conduct assessment on greenhouse gas, water consumption and waste for the last two years, and establish company strategies for energy conservation and carbon reduction, greenhouse gas reduction, water saving and waste management?

In response to the international net zero emissions initiative, the Company joined the CA100+ initiative and pledged to reduce greenhouse gas emissions by 42% for 2030 compared to 2020, and achieve net zero emissions by 2050.
In order to cope with climate change and promote the sustainable operation of the company, the company plans to continue to increase the use of renewable energy, and hopes to achieve green power use accounting for more than 50% in 2030.
The Company actively implements water resource management planning, identifies water risks, formulates water management strategies and targets, implements various water-saving projects, and promotes water recycling and reuse, in order to achieve conservation of water resources, efficient use of water resources, reduction of wastewater discharge, and impact on the environment.
The Company plans to reduce water intensity by 6% compared to 2020 by 2025. In 2022, the Company's total water intake reached 91,471,000 tons, and in 2023 the Company's total water intake (use) reached 81,596,221 tons. (The data covers the Greater China region, and global data were collected as disclosed in the Sustainability Report.)。 In order to practice the circular economy strategy, the Company actively promotes "Zero Waste" project, In addition, a waste management platform was established in 2021 at Shenzhen Longhua Park, China to track waste generation, flow, and conversion rate in real time through data management and control to achieve zero waste and build a zero-waste comprehensive ecological park. The Company plans to obtain at least 5 gold-certified plants with zero waste to landfill (UL2799) by 2025, and a total of 4 plants have obtained certification in 2023, with a total waste of 818,453 tons in 2022, The total amount of waste products reached 587,518 tons in 2023. (The data covers the Greater China region, and global data were collected as disclosed in the Sustainability Report.)。

Social Issues

Does the company formulate appropriate management policies and procedures according to relevant regulations and the International Bill of Human Rights?

The Company has established work rules in accordance with labor laws and personnel regulations to protect the legitimate rights and interests of employees. As a full member of the Responsible Business Alliance (RBA), in addition to actively participating in alliance activities and undertaking member-related obligations, the Group is committed to the compliance and promotion of corporate social responsibility together with peers and partners in the electronics industry. The "Code of Conduct" has been formulated based on the RBA, which is signed by the chairman of the board and the top managers of each business group. It is actively implemented and listed as a required course for all new employees every year. Current employees are continuously reminded that they should comply with the code of conduct requirements. The code of conduct covers eight major aspects: ethics, labor and human rights, health and safety, environment, management system, responsible mineral procurement, anti-corruption policy, and anti-slavery policy.
The Company dutifully abides by international human rights regulations and establishes the Company's "Employee Human Rights Chapter" with reference to the "Universal Declaration of Human Rights". The content includes 12 key requirements such as prohibition of unlawful discrimination. The special chapter on human rights demonstrates the importance and commitment of the Company to human rights. It provides human rights protections in terms of policies for employees partners hired by the Group and suppliers in any form, and implements all-employee training. In practice, we conduct labor audits and self-assessments at key factories around the world through human rights risk assessments. The dedicated unit and responsible person continue to track and audit the deficiencies, and improvement measures and progress; regularly follow up the self-assessed human rights risk factory areas and check the corresponding risk control mechanism. The Company has also established the "Supplier Social and Environmental Responsibility Code of Conduct" to ensure that suppliers and the Company comply with the same human rights principles.

Does the company formulate and implement reasonable employee benefits measures (including remuneration, vacation and other benefits, etc.), and appropriately reflect operating performance or results in employee compensation?

According to Article 28 of the Company's Articles of Incorporation, if there is profit in the year, 5% - 7% of the profit shall be set aside as employee remuneration. The Company has established performance bonus and employee remuneration and other reward systems. Share the performance with colleagues so that the salaries of colleagues can grow together with the Company's operations. In addition, the Company has established a code of business ethics, employee self-discipline, performance appraisal, and reward and punishment systems to guide employees' behaviors in line with sustainable development policies.

Does the company provide a healthy and safe working environment and organize training on health and safety for its employees on a regular basis?

Does the company provide its employees with career development and training sessions?

The Company’s Career Development unit is tasked with the planning and implementation of the Career Development Program.

Does the company comply with relevant regulations and international standards on the health and safety of customers, customer privacy, marketing and labeling of products and services, and formulates relevant policies and procedures to protect consumer rights and handling complaints?

Does the company formulated and implement supplier management policy, requiring suppliers to follow relevant regulations on issues such as environmental protection, occupational safety and health, or labor rights?

For more details, please refer to the "Supplier Management" section of the Company's Sustainability Report.

Does the company compile corporate social responsibility reports or reports that disclose the company's non-financial information based on international CSR compiling standard or guidelines? Is the report accredited from accreditation agency or third-party verification organization?

The Sustainability Report of the Company has been compiled in accordance with the Global Reporting Initiative (GRI) GRI-Standard and the standards of the Sustainability Accounting Standards Board (SASB). The aforementioned report has been certified by a third-party certification body in accordance with AA1000 and disclosed on the Company's website. In 2022, the certification authority was BSI, and in 2023, the certification authority was AFNOR International.

If the Company makes its own corporate social responsibilities principles according to the Rules of Corporate Social Responsibility Best Practice Principles for TWSE/GTSM-Listed Companies, please state the differences: Not applicable.

Any other important information that helps to understand the conduct of corporate social responsibility: