ESG

Linking Executive Compensation with ESG Sustainability Performance Indicators

To realize the Company’s vision and strategy for sustainable development and to strengthen senior management’s emphasis on environmental, social, and corporate governance (ESG) performance, the Company incorporates ESG sustainability performance indicators into the variable compensation assessment of senior executives. This mechanism is intended to enhance their accountability and influence in advancing the Company’s sustainability initiatives.

The ESG sustainability performance indicators established by the Company encompass environmental sustainability, social engagement, corporate governance, and financial strategy. Through quantifiable metrics, the Company aims to reinforce the implementation of its sustainability strategies.

1. Scope of Application: Senior Executives
2. Objectives and Measures: To strengthen the linkage between compensation and sustainability performance, thereby supporting and achieving the Company’s sustainable development strategy and goals.
3. Description of ESG Sustainability Performance Indicators and Weighting:
Indicators Proportion Explanation
Corporate Governance 20% Emphasize improving corporate governance and compliance, and include corporate governance evaluation and legal compliance as indicators.
Social Responsibility 15% Prioritize the practice of corporate social responsibility, with talent retention and employee safety included as indicators.
Sustainable Environment 10-15% Focusing on mitigating climate change and adaptation, reducing energy consumption, and promoting effective waste utilization.
Financial Strategy 50% Emphasizing the company's economic performance and operational efficiency, including growth rates of revenue, gross profit, net profit after tax, and financial indicators such as earnings per share.