Sustainable Development Committee

Organization and Responsibilities of the Sustainable Development Committee

To implement the concept of sustainable management and strengthen the Company’s management system in the three major areas of environmental protection, social responsibility and corporate governance for purpose of sustainable development, the Board of Directors resolved to establish “Sustainable Development Committee” on November 14, 2023, which is a functional committee under the Board of Directors. The Committee is composed of at least three members appointed by resolution of the Board of Directors, and more than half of them are independent directors. Currently, there are five members, composed of Chairman of the Board, a Director and three Independent Directors. Two functional organizations, the “Sustainable Development Team” and the “Risk Management Team”, have been set up under this Committee. Chief Sustainability Officer, Mr. Willie Sun, and Chief Financial Officer, Ms. Cheryl Yang, serve as team leaders respectively to implement the promotion and execution of sustainable development work.

The convener and chairman of the Committee is Director, Ms. Kerry Hsu. She possesses experience in establishing and managing a public company and expertise of corporate governance and management capabilities of financial risk and legal compliance risk. Chairman of the Board and the founder of the Company, Mr. Eric Cheng, possesses the leadership for an international company and has knowledge related to the development of the semiconductor industry and knowledge of component industry, and crisis response and management capabilities for strategic and operational risks. Independent Director, Mr. Kung-Wha Ding, has served as Chairperson of the Financial Supervisory Commission, Chairman of Taipei Exchange and Chairman of Taiwan Depository & Clearing Corporation. He has expertise in securities management, finance and corporate governance and possess the management ability of financial risk and legal compliance risk. Independent Director, Mr. Terry Cheng possesses experience in managing international companies and has been working in the semiconductors industry for over 40 years, has the adaptability of supply chain risk management and operational risk management and is a professional manager with extensive experience in the electronics industry. Independent Director, Ms. Elaine Kung, has professional qualification as accountants in the Republic of China, the United States and the People’s Republic of China and is expert in finance and tax planning and possess the ability of accounting and to manage financial and taxation information risk. Accordingly, all members conform to the professional competence required by the Committee.

The main functions of the Sustainable Development Committee are the following matters:
1.To review policies and strategies for sustainable development.
2.To review major issues that each stakeholder concerns and supervise the establishment of an effective communication and response mechanism with stakeholders.
3.To examine risk identification and materiality assessment results, include risk appetite or tolerance level.
4.To review implementation plans for major risk issues and supervise the implementation of related matters.
5.To examine management reports of major risk issues, supervise and improve mechanisms.
6.To examine the appropriateness of the overall risk management framework for sustainable development.
7.Other matters to be performed by the Committee pursuant to the instructions of the Board.