Sustainable Development Information

The company’s Board of Directors has approved the Sustainable Development Best Practice Principles and Sustainable Development Policy to establish a framework for promoting sustainability. Additionally, the company has established a functional committee, the Integrity and Sustainability Committee, composed of three independent directors. This committee is required to convene at least once a year and is responsible for formulating and overseeing the implementation of integrity management policies and preventive measures, as well as supervising sustainability and fair treatment-related matters. Its main responsibilities include:

• Assisting in integrating integrity and ethical values into the company’s business strategies and establishing anti-corruption measures in compliance with legal and regulatory requirements.
• Regularly analyzing and assessing the risks of unethical behavior within the company’s business operations and formulating preventive measures accordingly, including setting up standard operating procedures and behavioral guidelines for relevant work activities.
• Planning internal structures, staffing, and responsibilities to implement a monitoring and checks-and-balances mechanism for business activities with a higher risk of unethical behavior.
• Promoting and coordinating integrity policy training and awareness programs, as well as establishing a whistleblowing system to ensure its effectiveness.
• Assisting in embedding sustainability and fair treatment values into the company’s corporate culture.
• Reviewing the company’s policies and objectives regarding sustainable development and fair treatment.
• Supervising the implementation and effectiveness of the company’s sustainability and fair treatment initiatives.

In 2024, the Integrity and Sustainability Committee held a total of four meetings, with key agenda items including the review of the company's 2023 Sustainability Report, reporting on the implementation of the company's ESG responsible investment initiatives, handling of customer complaints, execution of performance targets (KPIs) under the Fair Treatment of Customers Principles, as well as planning and quarterly implementation reporting on sustainability development and greenhouse gas inventory initiatives. Additionally, the committee established the company's Fair Treatment of Customers Principles assessment form and revised the Dispute Resolution Guidelines, Corporate Governance Best Practice Principles, and Internal Material Information Handling Procedures. These revisions were approved by the Integrity and Sustainability Committee before being submitted to the Board of Directors for resolution.

The company established the ESG Committee in October 2022, responsible for the planning and execution of various ESG initiatives. The General Manager serves as the convener, with members including heads from the Proprietary Trading Dept., Equity Proprietary Trading Dept., Managed Futures Dept., Leverage Transaction Dept., Financial Innovation Dept., Finance Dept., Domestic Institutions Dept., Digital Growth Dept., Risk Management Dept., Sustainable Governance Division, General Affairs Division, and Corporate Governance Officer. The Sustainability Governance Office serves as the dedicated (or concurrent) unit for promoting sustainable development and is responsible for overseeing ESG-related operations. Its primary duties include establishing and reviewing various sustainability-related regulations and guidelines, compiling and preparing the annual sustainability report and sustainability activity plan, monitoring domestic and international sustainability trends and developments, and raising awareness among employees to foster a corporate culture of sustainability development.

The Board of Directors regularly reviews the progress of sustainability initiatives and greenhouse gas inventory planning and implementation on a quarterly basis. Additionally, the Board receives an annual report (at least once a year) on the company’s sustainability activities and implementation outcomes. Based on the effectiveness of the initiatives, the Board provides relevant recommendations and necessary adjustments.
The Board not only ensures that the overall objectives of the sustainability strategy are clearly defined but also monitors changes in global and local sustainability regulations. This ensures that the company’s strategic initiatives comply with relevant legal requirements and can be adjusted in a timely manner to stay aligned with its established goals.

• On March 13, 2023, the board of directors reviewed and approved amendments to the company's "Sustainability Development Guidelines" and "Sustainability Development Policy," and reported them at the 2023 Annual Shareholders' Meeting.
• On March 12, 2024, the "2023 Sustainability Development Implementation Results" and the "2024 Sustainability Development Plan" were reported to the board of directors.
• On March 6, 2025, the "2024 Sustainability Development Implementation Results" and the "2025 Sustainability Development Plan" were reported to the board of directors.

• The Board of Directors requires the company to provide the annual sustainability report to all directors when submitting it each year. This ensures that each director can effectively review and monitor the company’s sustainability initiatives. The Board oversees the specific goals, achievements, and future development plans outlined in the report to ensure alignment with the company’s long-term strategy and market demands, thereby enhancing its sustainability performance and competitiveness.
• The Board recommends optimizing the existing customer complaint handling process by actively seeking the best resolution methods and regularly reviewing their effectiveness to ensure that complaints are addressed swiftly and appropriately.
• To prevent financial exploitation, the Board suggests that the company's goodwill care interview procedures include clients with agents and elderly clients.
• The Board urges the company to continuously compile and communicate cases of regulatory violations announced by external supervisory bodies to strengthen employees’ awareness of compliance.
• The Board recommends that the company assess whether an appropriate reward mechanism for whistleblowers is in place. Additionally, the effectiveness of the reward mechanism should be evaluated regularly and adjusted as necessary.