桓達科技股份有限公司

Sustainable development management

Sustainable Development Committee

In order to practice corporate social responsibility and promote economic, environmental and social progress to achieve the goal of sustainable development, the company established a Sustainable Development Committee in December 2022. The committee's powers include:

Formulate sustainable development directions and goals, and formulate relevant management policies and specific promotion plans.
Promote and implement work related to the company's sustainable development direction and goals.
Track, review and revise the implementation and effectiveness of the company's sustainable development.
Other matters handled by this committee upon resolution of the board of directors.

The company's sustainable development committee has five members, including two directors: WU TING-KUO and Wu KUEI-YUNG, and three independent directors: CHIEN CHUN-CHU, WU CHIN-KUANG and WU HSI-HE. Director WU TING-KUO serves as the convener. The goals are implemented by six working groups: environmental sustainability, employee care, social welfare, corporate governance, customer care and partnership. The board of directors will conduct a report on goals and sustainability implementation results at least once a year, and the content can only be issued after approval by the sustainability committee.
The sustainable development committee reports the goals and sustainability performance to the board of directors at least once a year, The committee reported twice to the board of directors in 2024, including major issues and the issuance of a sustainability report.
For the implementation status of the Sustainability Committee, please refer to the company’s website: Investor Relations > Corporate Governance > Functional Committee.
The Board of Directors continuously monitors the implementation of the Sustainability Committee and provides recommendations. The Sustainability Report can only be issued after approved by the Board of Directors. The 2023 Sustainability Report was approved by the 14th meeting of the 8th session of Board of Directors.

Major Theme Analysis
Based on the results of stakeholder identification, the Company has adjusted its material topic assessment process in accordance with the disclosure principles of "GRI3: Material Topics 2021" to enable us to have a deeper understanding of the positive impacts that have (or may have) occurred to the outside world and within the organization during the course of operating activities. and the extent of negative impacts, in order to further develop management policies to prevent or mitigate negative impacts, or actively create positive contributions.

Risk Management
The Company has formulated risk management policies and procedures, which have been approved by the Board of Directors. The goal of risk management is to improve management efficiency, provide reliable information, and effectively allocate resources, so that the company can operate steadily and move towards the goal of sustainable development.
The company's functional committee - the Sustainability Committee is responsible for reviewing and supervising risk management. The Company reports risk management-related matters to the Board of Directors at least once a year, most recently at the 17th meeting of the 8th Board of Directors (December 20, 2024). The risk management organizational structure is described as follows:

The company's risk management procedures include five major elements: risk identification, risk analysis, risk assessment, risk response, and supervision and review mechanism. The risks identified by the Company in 2025 are as follows:

Enterprise Risk	Information Security Management Geopolitical conflict Impact of monetary and economic downturn and industrial recession Shortage of labor resources Extreme climate

The risks identified by the Company and their response strategies are as follows:

Risk category	Countermeasures
Strategy risk	In response to the differential changes in geo-economics, the company operates a multi-brand strategy to reduce revenue risks and certification transformation caused by economic stagnation in a single region.
Business risk	In response to the labor shortage caused by the declining birthrate and aging society, the Company has improved employee benefits, created a friendly workplace environment, and increased employee retention rate. Promote PDCA supply chain inventory and inventory age management, global plant production scheduling, inventory of exclusive supply chains, annual contracts for active/passive components, multi-skilled personnel, plant-wide automation planning and other measures. Assist important supply chains to bring workers and materials, and reduce suppliers' inventory burden. Understand customer needs in the coming year and prepare safety stock and second supply chain development in advance.
Financial risk	Including exchange rate and interest rate risks, the company's financial department evaluates exchange rate and interest rate differences at any time, and then takes hedging measures, such as natural hedging, to avoid causing the company to suffer heavy losses.
Information risk	Our company has conducted a complete assessment of all information security risks and asset impacts, providing customers, users, and supply chains with a consistent security operating platform, and establishing a dual backup system for each plant.
Compliance risk	The company strictly abides by relevant laws and regulations and laws related to the internal control system, including compliance with the listing laws and regulations of the Labor Bureau, etc., and hires legal consultants to provide necessary consultation and review basis to avoid the risk of damaging the company's goodwill and causing significant losses.
Integrity Risk	Our company has established "Integrity Management Operating Procedures and Behavior Guidelines" and "Integrity Management Code", and conducts internal and external training for managers and employees every year.