To achieve the target of sustainable development and effectively reduce corporate operational risks, the company formulated the "Risk Management Policies and Procedures", and established a risk management organization and management mechanism flow, which were approved by the Board of Directors' Meeting in May 2022.

In order to deepen the Company's sustainable governance and risk management, the Board of Directors established the "Sustainability Committee" on August 7, 2023, appointed 5 members of the first Sustainability Committee, including 3 independent directors, the Chairman as the convener and the President as the vice convener, and reached resolution to amend the "Risk Management Policy and Procedure" on December 20 of the same year.

The Board of Directors is the Company's highest supervising body of risk management, which approves risk management policies and procedures and supervises effective operation of the risk management mechanism according to the Company's operational strategy and business environment, ensuring effectiveness of risk management and holding the ultimate responsibility of risk management.

The Sustainability Committee is a functional committee directly under the board of directors, coordinating and supervising the company's various responsible units to promote the company's risk management matters.

The Sustainability Committee executive teams are responsible for implementing risk management-related businesses, and the head of Supervisory Department serves as the chair, who is in charge of convening group meetings, assisting in the promotion of various sustainability tasks, coordinating all responsible units' risk management policies and procedures, risk control implementation and response improvement to ensure the effective operation of the risk management mechanism, and regularly reporting implementation results to the Sustainability Committee and the Board of Directors every year.

Risk Management Organization and Flow

Risk Management Topics and Responses

To implement risk management, the Company identifies potential risks in its operational processes in accordance with the risk management flow, identifying 7 major risks of "Operational Risk," "Financial Risk," "Inflation Risk," "Procurement and Sales Concentration Risk," "Occupational Safety and Health Risk," "Information Risk," "Environmental and Climate Change Risk," and each responsible unit have formulated corresponding plans and response measures to lower the risks and ensure that all risks are controlled and monitored.

The implementation of 2024 risk management has reported to the Sustainability Committee and Board of Directors on December 26, 2024.

Management of and Strategies for Climate Change Risks and Opportunities