Governance

Sustainable Development

Sustainable Development Policy: In order to fulfill sustainable development, promote economic, environmental and social progress, and achieve the goal of sustainable development, the Company has stipulated the " Sustainable Development Best Practice Principles " for appropriate compliance.
Implementation unit：
The implementation unit of the Company is Administration and Finance Department, which is responsible for coordinating the collection of issues related to environment, social and governance (ESG). Through meetings, it identifies major issues related to the operations of the Company and the concerns of stakeholders, formulates relevant management policies, reviews the implementation of various policies, and regularly reports the implementation results to the board of directors at least once a year. The company has reported to the board of directors on November 8, 2023, the board of directors supervised and reviewed whether the Company's implementation met the goals to ensure sustainable promotion and development.
Based on the major issues, formulated relevant management policies and implementation as follows:

ESG Issue	Major Issue	Management Policy and Implementation
Governance	Information Security	At the end of 2022, the company obtained the information security authentication as ISO 27001, which meets international standards. In order to ensure the implementation of ISO 27001 management mechanism, we carries out the "Plan-Do-Check-Act" (PDCA) operation and conducts internal self-audit and external impartial third-party audit at least once a year.
	Innovation Management	1.In order to protect the Company's freedom of operation, strengthen its leading position in the industry, and maintain advanced technological achievements, we strengthen the protection of intellectual property rights . As of the end of September 2023, the total number of global patent applications of the Company has accumulated to 910, and the number of global granted patents has accumulated to 510. 2.In August 2023, a course on "The Value and Protection of Intellectual Property Rights" was launched for all company personnel, with a completion rate of 100%.
	Compliance	In March 2023, a new "Regulatory Identification Management Procedure" was added, and the first regulatory identification procedure was completed in June 2023.
Environment	Sustainable Supply Chain Management	1.The "Supplier Corporate Social Responsibility Commitment" is formulated, and is read, understood and signed for confirmation by the supplier partners. The collection rate of said Commitment has reached more than 90%. The content of the Commitment includes four aspects: integrity management, labor rights and human rights, health and safety, and environmental protection. We hope to grow together with our supply chain partners, establish a sustainable partnership, and work together to implement corporate social responsibility. 2.Supplier assessments are conducted regularly in January every year. A total of 144 suppliers were evaluated in 2023.
Environment	Climate and Energy	1.According to the company’s inventory and verification schedule, the establishment of full-time (part-time) personnel for greenhouse gas inventory will be completed by the end of December 2024. 2.The company evaluates that comprehensive replacement of LED lighting equipment in the office space will reduce electricity consumption by 34.4%. The replacement process will take place in 2024.
Social	Talents Attraction and Retention	1.Competitive salary (P75)：according to 2022 salary information for full-time employees in non-supervisory positions. Among the 1672 listed companies, the company ranks 241st in average salary and 246st in median average salary. 2.Offer a supervisory training course: a total of 4 classes are launched, with a total of 27 participants and a total of 162 training hours. 3.Provide club subsidies, encourage colleagues to participate in club activities. Promote the physical and mental health of colleagues and mutual friendship through leisure activities. There are Camping club, Mountaineering Club, Badminton Club, and Golf Club in the Company.
	Talents Development	Reaction evaluation score for this year’s physical and online education courses was 4.5 out of 5.0
	Human Rights	Working hours system superior to the Labor Standards：7 hours a day; Provide seven days of paid Company leave per year for those who have more than one-year experience in the Company; Flexible working hours for working moms.
	Occupational Safety and Health	1.According to labor health protection rules, employers should carry out regular general health checkups for in-service workers within the prescribed time limit. We conduct health check management on in-service employees every year better than the labor health protection rules. 2.In accordance with the Fire Protection Act and its implementation rules, conduct annual fire inspections of the office environment within the time limit for the affiliated offices and report to the fire brigade. 3.In order to ensure the air quality of the working environment of our colleagues, we entrust a qualified working environment measurement manufacturer to conduct regular environmental air quality testing.
	Social Participation	1.In response to the international Earth Day 2023, the company participated in the Shimen Reservoir tree planting event organized by corporate partners to collectively focus on ESG environmental protection issue. 2.Sponsor the "2023 LOHAS Shulin Bicycle Tour" event held by the Shulin District Sports Association in respond to carbon reduction and environmental protection. 3.Sponsor the "2023 Summer Activities for Kids" event held by Shulin District Sports Association to promote the sports talent cultivation program, and strengthen children's physical fitness and professional skill. 4.Sponsored "2023 Sustainable Smart Innovation Hackathon Competition" jointly organized by eight universities. Creative proposals were presented by students in the competition, expecting to fulfill operation management optimization, service innovation and friendly society.
	Cultural Development	1.The company plans half-day tour in the second quarter of 2023 for each department to visit various art and cultural venues to promote domestic culture development and encourage employees innovation. 2.Sponsor choir of Jiaxing Primary School in Hsinchu County and support Taiwanese students to compete abroad and win glory for the country.