The Company passed the Risk Management Rules in December 16th 2020, which stipulated our risk management policies and identified risks, assessed risks, controlled risks, supervised risks, communicated risk information, and reported risk management processes to strengthen employees' perception of risks and contain the risk within an affordable level, and targeted to secure the integrity, feasibility, and the benefits of risk management.

The Structure of the Company's Risk Management Organization
 

The Scope of the Company's Risk Management
 

The risk management scope includes strategies, operation, finance, information security, law compliance, and the climate change. Detailed illustrations are listed in the article no 3. of the Code of Risk Management. Based on the scale of impacts, the ESG subjects are listed and evaluated as follow as well as the formulated management strategies.

Risk Management Operating Status
 

The company's "Risk Management Measures" were approved by the board of directors on December 16, 2020.

The company has the general manager as the convener and the deputy general manager as the deputy convener. Weekly meetings are held to review and evaluate the company's operating conditions, including various risk issues such as strategic risk, operational risk, financial risk, hazard risk, information security risk and Other risks. Monthly meeting are held to review environmental protection and energy conservation meetings to track energy conservation, carbon reduction and climate change-related goals, and regularly report the tracking results to the chairman of the board.

Arrange to report risk management operations to the board of directors at least once a year. The latest report date is May 23, 2023. The long-term strategic goals of climate change, energy saving and carbon reduction strategies, medium and long-term vision, annual energy saving, carbon reduction performance and risks management ,and other ESG sustainable development business operations have been reported to the chairman of the board.

In response to the world's climate change issues, the company published the TCFD report in May 2023. In addition to identifying 5 TCFD-related risks, TCFD-related opportunities, with the four major TCFD structures: "Governance" and "Strategy" , "Climate Change Risks and Opportunities Management", and "Indicators and Targets" clearly disclose the company's strategies and actions in response to climate change in the report.

In addition to continuing general risk management operations in 2023, the company has implemented several risk management projects related to climate change, energy management, industrial safety, circular economy, information security, exchange rate fluctuations, and legal changes. Meanwhile, ESG report and stakeholder engagement communication report have been published.