Environmental, Social, and Corporate Governance Risk Assessment

In accordance with the company's "Sustainable Development Practical Code" and the GRI Sustainability Reporting Standards , the company has established the "Environmental, Social, and Corporate Governance Risk Assessment Methods" to review environmental, social, and corporate governance (ESG) issues related to the company's operations and to conduct materiality analysis of significant issues.

Materiality analysis refers to the process by which a company assesses the significance and relevance of specific issues related to environmental, social, and corporate governance (ESG), such as energy saving and carbon reduction, climate change, political events, innovation, digitalization, etc. This assessment considers the impact on the company itself, its stakeholders, and the interactions between them.

Incorporating the four key principles of stakeholder inclusiveness, sustainability context, materiality, and completeness from the Global Reporting Initiative's (GRI) Sustainability Reporting Guidelines, the company conducts a materiality analysis through four steps: identification, prioritization, validation, and review. This process examines sustainability issues, aligns the company's sustainability management strategy and long-term goals, and serves as the basis for preparing the sustainability report. It aims to assess the company's current sustainability status, drive continuous improvement across departments, and create shared value for society and the company.

When conducting materiality analysis, the company should evaluate the impact of each consideration on stakeholder assessments and decision-making, as well as the significance of its economic, environmental, and social impacts.