To materialize sustainable development and align with international frameworks and practices, TCFHC established the Sustainable Development Committee that reports regularly to the Board of Directors. A Sustainability Office was also founded to assist the Committee oversee the progress of the Group’s sustainability policies, systems, and plans.

In order to advance governance in sustainable development, TCFHC incorporated the Ethical Management Committee into the Sustainable Development Committee (hereafter Committee) in 2023, and upgraded the Committee to a functional committee supervised by the Board of Directors. The Committee meets at least once every quarter, and the Sustainability Office was reformed into a formal operational and management unit. A personnel equivalent to a vice president or above should be appointed as the Chief Sustainability Officer to supervise sustainability-related issues.

The Committee is convened by the Chair of TCFHC and consist of 5-7 member from the TCFHC Board of Directors. At least half of the Committee members should be non-executive members from the Board. The Committee leads 6 major executive task forces, namely corporate governance, sustainable finance, customer commitment, employee care, environmental sustainability, and social inclusion, led by Executive Vice Presidents of TCFHC. Short-, medium-, and long-term specific and measurable targets are set for each task force. Progress of each sustainability target is tracked, and plans are modified on a rolling basis. The Committee shall regularly report on compliance with ethical management at least once a year and submit plans and results of the annual sustainable development implementation program to the Board. The aim of the Committee is to advance sustainability effectively and create value of sustainability for stakeholders in a top-down, systematic manner. The Company’s performance in terms of sustainable development, short-, medium-, and long-term goals, and relevant matter regarding sustainable development were reported to the Committee on June 8 ^th , 2023, and the Board of Directors on June 26 ^th , 2023.

The Committee held 4 meetings in 2023 and approved annual targets of task forces, noted the progress and implementation of annual projects, and reviewed ESG policies and regulations. Proceedings approved by the Board of Directors are listed as follows:

1. The policies and guidelines related to ESG was amended on May 22 ^nd , 2023.
2. The policies related to ESG was amended on June 26 ^th , 2023.
3. The execution results of the Company’s sustainability development was reported on June 26 ^th , 2023.
4. The Company committed to setting net-zero targets as per the Science-Based Targets initiative (SBTi) on June 26 ^th , 2023.
5. The greenhouse gas inventory plan stipulated in "Sustainable Development Roadmap for TWSE/TPEx Listed Companies" was reported on January 18 ^th , April 24 ^th , July 24 ^th and December 25 ^th , 2023.
6. The organizational adjustments and newly formulated "Organizational Regulations for the Sustainable Development Committee" were reported on October 23 ^rd , 2023.
7. The attendance fees for members of the Sustainable Development Committee attending meetings were reviewed on December 25 ^th , 2023.

The aforementioned proceedings were all approved and/or revised at the meetings for enhancing the implementation of the Company’s sustainable development.