Talent Cultivation

1.Building a Sustainable Talent Supply Chain for E.SUN

Objective

E.SUN is committed to becoming a leading brand in sustainable finance. In line with this vision, the company has adopted the approach of "cultivating talent first, then operating the business." To achieve this, E.SUN has integrated ESG elements into its career training system. In addition to inviting external professional lecturers to teach, the company has also arranged for the "E.SUN Sustainable New Team" to serve as course instructors. Through a variety of training methods, E.SUN is leading its employees to pay attention to international sustainability issues, cultivate sustainable finance expertise, and build a sustainable talent supply chain for E.SUN.

Target

All E.SUN employees

Cultivation Direction

The courses start with "building literacy" and progress through "connecting expertise," "practicing innovation," and "sustainable management" to cultivate the common literacy and expertise of E.SUN people and help E.SUN move towards sustainable management.

2.The Best Partner for Corporate Sustainability Transformation

Objective

The financial industry plays an important role in sustainable transformation, and E.SUN aims to be the "best partner" for corporate sustainable transformation. Through cultivating expertise in "responsible lending and investment," "responsible products," and "sustainability consulting," E.SUN will assist enterprises in finding sustainable solutions and establish the E.SUN Sustainability Platform to create a "preferred for preferred" model.

Target

All E.SUN employees & Sustainable Team

Cultivation Direction

All professional courses in each job category include relevant content education and training. For example: The Legal and Financial Job Category uses "in-person courses" to teach the "Sustainable Finance and Responsible Lending" business scope and process management. The Consumer Finance Job Category uses "monthly video conferences" to convey "Sustainable Consumer Finance Products" professional knowledge and precautions. Disseminate trends related to issues such as climate change and environmental sustainability to all colleagues.。

3.Nurturing the Seeds of E.SUN's Sustainable Development-Sustainable Finance Manager

Objective

E.SUN is committed to becoming a benchmark enterprise for sustainable development and has pledged to achieve net-zero emissions by 2050. The "Sustainable Finance Manager Training Program" is an important part of E.SUN's plan to cultivate the seeds of sustainable development. Through professional courses and practical operations, the program helps employees accumulate knowledge and skills in sustainable finance, encourages them to apply what they have learned to their work, and become part of the "Sustainable New Team."

Target

Sustainable New Team & E.SUN practitioners with high relevance to their business scope and ESG

Cultivation Direction

E.SUN established the Sustainable New Team in 2023, setting up dedicated core and co-organizing units and linking unit performance with sustainability to accelerate the development of E.SUN's ESG. In the same year, it also held the second Sustainable Finance Manager Training Program and invited members of the Sustainable Team to join. The course was designed around four themes: "Sustainable Finance Trends and Policies," "Investment and Insurance and Value Chain," "ESG Information Disclosure and Evaluation," and "Climate Finance and Management Practices," to inspire employees' professional knowledge of sustainable finance from a shallow to deep level. A total of 154 people passed the assessment in two years and became "Sustainable Finance Managers."

4.ESG Sustainable Finance Cultivation Program-Outcomes

Recruiting a Diverse Pool of Professionals and International Talents

Countries, industries and enterprises all need outstanding talents to generate momentum for innovation and progress. E.SUN has been deeply committed to nurturing Taiwan's financial, technological and cross-border professionals, and has actively dedicated to ESG field and cultivating international talents by collaborating with industrial partners, governments, academia, and research institutions. Leveraging financial influence to work toward the goal of being the international finance-leader.

Collaboration with Industries and Academia

International Talents' Attraction and Cultivation

Performance Management

E.SUN performance management system, in line with the company development strategy, establishes specific directions and goals for individual units based on personal roles and responsibility (R&R), assisting units in achieving their objectives.
Each year, all employees to participate in the performance management cycle is utilized to facilitate clear communication and guidance through two-way communication and performance interviews, collectively working towards goal attainment. In terms of team performance, E.SUN implements an annual unit performance evaluation system to uphold its operational policies. This system links development strategies and performance indicators through goals and key outcomes, enhancing operational value and overall profitability. It also strengthens accountability performance, moving towards excellence in operations.

Performance Management

Competitive Compensation System

E.SUN compensation policy is structured on position-based salary and performance-based bonuses. Base salary includes principal salary and various allowances, variable bonus includes bonus and remuneration. Compensation adjustments are according to job duties and performance contributions, with the design of diverse long-term incentive mechanisms to align with the organization‘s long-term operational results. Additionally, deferred and clawback mechanisms are incorporated to enhance motivation and retention effects, continuously improving operational performance and ensuring sustainable development.

Base salary

• Setting a fixed pay according to job duties, professional skills, and market standard.
• Participating in the market salary survey every year and providing a reasonable and competitive compensation system.
• Continuously selected as a constituent stock of the TWSE RAFIR Taiwan High Compensation 100 Index since 2018.
• In 2023, the average salary was raised by 3-5%Note.

Note: Subjects included in this salary statistics are full-time employees in Taiwan who have worked in E.SUN for no less than 1 year.

Variable bonus

• Providing variable pay (including bonus and remuneration) according to the company's overall, unit, and
individual performance.
• Reserving 15% of the shares for employee subscriptions when cash capital increases in 2023.

Long-Term incentive

• Employee savings association (employee stock ownership program),the company contributes incentive bonuses thrice each year. The participation rate has exceeded 90% for three consecutive years. Allotted more than NT$200 million in matching contributions in 2023.
• Employee remuneration is distributed to employees in the form of shares.
• According to our Long-term Incentive Reward System, we provide talented employees with E.SUN Phantom Shares which will be granted after five years, so as to stimulate their creating long-term performance.
• Seniority rewards to appreciate senior employees for their rendering services, employees with a 10-year seniority will be rewarded the plaque .Distributed over NT$10 million credit card payments.

Diverse welfare measures

E.SUN firmly believes in the principle of "satisfied employees lead to satisfied customers." With the goal of creating a better employee experience, the company actively promotes a workplace environment that values inclusivity, provides maternal care support, promotes health and wellness, and encourages family participation. These measures are implemented to ensure the overall well-being and satisfaction of employees at E.SUN.

	・Quality mentor program ・Office spaces focused on safety, comfort, peopleoriented, technologically-smart, and artistic aesthetics ・Multiple working hours, flexible working hours, parttime working option and work from home ・Employee mess hall, parking lot, gym ・Creating a diverse and inclusive workplace environment, supporting gender equality and safeguarding the rights and interests of individuals with disabilities and indigenous people ceremonial leave (2 days)
	・Marriage/childbirth subsidies, NT$100,000 in E.SUN Baby Development Fund ・E.SUN handbook for new mothers, breastfeeding seminars for expecting mothers ・Organizing Maternal Care Seminars ・Paid parental leave for the primary caregiver is more than 10 weeks, including: (a) during pregnancy – leave for Prenatal checkup, 8 days, (b) after birth –Maternity leave, 63days. Paid parental leave for the non-primary caregiver is 8 days for "Accompanying prenatal checkup and maternity leave." All mentioned leaves above are better than legal requirement. ・All branches nationwide are equipped with breastfeeding rooms and five office buildings have been certified as "Excellent Breastfeeding Room."
	・Employee Assistance Program (EAP) psychological counseling services ・Expanding group insurance coverage scope and improving protection for employees and their families against specific risks ・Health Check-up Subsidy ・Healthy weight loss programs / Multidimensional Health Seminar ・Jade Mountain Summit Challenge / Hiking and cycling around Taiwan ・Social club activities (table tennis, badminton, aerobics classes and so on)
	・Mother / father's day cards and monetary ・E.SUN Choir and Concert for Mothers ・Child education subsidies, Outstanding children's award and E.SUN family care ・Special offers on children's foreign language learning activities ・Chinese New Year accommodation for employees and spouses ・Offer unpaid leave superior to legal requirements ・Music concerts (Vienna Boys' Choir, Mayday) and artistic events (E.SUNAwards: artists painting E.Sun (Mt.Jade) for the celebrations for the 30th anniversary of E.SUN)

Comprehensive retirement protection

・To encourage early retirement planning, E.SUN has established the employee savings association stock trust. Employees who have passed probation are free to join the association, and the company contributes incentive bonuses thrice each year. Allotted more than NT$20 million in matching contributions in 2023.
・Provided retirement trust projects exclusively for E.SUN employees, encouraging them to plan asset allocation early on to ensure their retirement lives.
・To reward employees with outstanding performance, retirement bonuses in addition to pension may be provided according to their work performance or special contributions.
・For those subject to the "Labor Standards Act," E.SUN allocates retirement reserves ranging from 2%-15% of employee salaries to Taiwan Bank's special accounts on a monthly basis, all of which are fully allocated.
・For those whose employment started on July 1, 2005 or opted for the new pension system, E.SUN allocates a 6% monthly pension according to the law.
・Pension for overseas employees is subject to local laws and regulations.

Equal Employment Measures

E.SUN has been actively promoting gender equality in the workplace for a long time. The company implements equal pay policies and a fair and just performance evaluation system to ensure fairness. E.SUN takes action to support and protect the rights and benefits of colleagues in same-sex marriages, ensuring that they and their same-sex spouses enjoy equal benefits. The goal is to create a non-discriminatory work environment.

1.Equal remuneration

In line with internal and external fairness, E.SUN ensures equal pay for equal work between men and women. In 2023, there were no significant differences in the male-to- female pay ratio for employees in different categories in Taiwan. In E.SUN's main operating locations in Taiwan, the average monthly salary for male and female employees in general positions was double the minimum wage in Taiwan.

2.Embracing Gender Diversity

Since the legalization of same-sex marriage, E.SUN has been providing relevant benefits and marriage subsidies to colleagues in same-sex marriages in accordance with the regulations, while offering equal blessings. Keeping up with the changing trends in social equality laws, E.SUN is proactive in implementing Taiwan's national policies regarding gender equality. Gender-friendly restrooms have been set up in every owned building, ensuring convenience, security, privacy, and fairness for all individuals, including those with diverse genders, in public spaces, making the environment more humane and inclusive.

3.Sexual harassment prevention

E.SUN places great importance on workplace equality and gender equality, and has been actively promoting gender equality and prevention of workplace harassment. In 2023, we have invited lawyers to conduct seminars on gender equality and prevention of workplace harassment. We have also established an online platform for "Gender Equality and Prevention of Harassment" training to raise awareness of gender equality.
In order to handle cases of harassment complaints, we have established the "Guidelines for the Establishment of Gender Equality Committees in E.SUN FHC and Its Subsidiaries" and the "Guidelines for Complaints and Disciplinary Actions for Prevention of Harassment in E.SUN FHC and Its Subsidiaries". These guidelines include the establishment of a dedicated channel for harassment complaints and specify the principles and penalties for investigation and disciplinary actions, aiming to provide clear institutional protection to whistleblowers.
We have set up a Gender Harassment Complaint Evaluation Committee, with the Chief Commissioner being a senior executive officer, and a total of 9 members in the committee. The proportion of female committee members is more than 2 to 1. The committee is committed to initiating investigations within 7 days upon receipt of a complaint and completing the investigation within 2 months.
In 2023, E.SUN FHC did not have any cases of discrimination, but there were 3 cases of sexual harassment. The Gender Harassment Complaint Evaluation Committee adheres to the principles of objectivity, fairness, and professionalism, investigates and understands the incident process, provides necessary assistance to victims, and offers assistance programs and counseling services, fulfilling our corporate social responsibility of caring for colleagues. In addition, E.SUN provides various channels for employees to voice their concerns and seek assistance when needed:
・Dedicated sexual harassment complaint channels, including a hotline, fax line, and gender equality complaint mailbox.
・The Sexual Harassment Complaints Review Committee conducts investigations based on objectivity, fairness, and professionalism, and imposes appropriate punishments according to the evaluation results.
・Employee Assistance Programs provide counseling services. E.SUN holds gender mainstreaming seminars every year. In 2023, the invitation was extended to members of the Gender Equality Committee, head office executives, and colleagues from various branches, with a total of 2,737 participants. In addition to the seminars, an online training on "Gender Equality and Prevention of Sexual Harassment" was also conducted in 2023. All managers were required to participate by accessing the course material on the e-Learning+ website.

Employee communication channels

E.SUN has always upheld the importance of paying attention to and listening to the voices of employees. E.SUN encourages employees to join the trade union and guarantees the freedom of association of employees; in 2023, the proportion of employees joining the trade union was 14.08%.A total of 4 labor management meetings were held to discuss 10 topics, including workdays and holidays, special leave regulations, overtime procedures, flexible working hours, etc. The above-mentioned labor-management agreement applies to 100% of all employees. As the labor union has not put forward any requests for collective bargaining agreements, no group agreement signed. E.SUN established a “CHRO Mailbox”, “Employee opinion reflection/ reporting section” and “E.SUN employees message board” to better understand the concerns of employees and listen to their suggestions and voices. Including queries and suggestions respecting diverse issues such as pandemic control measures, personnel system, employee welfare, leader management.

Results Achieved Through Diverse Communication Channels

2023 Employee engagement survey

Employee Engagement Rate

Note 1: In 2020, employee engagement age categories are divided into below 30 years old, 31-50 years old, and above 51 years old.
Note 2: Employee engagement encompasses all employees within E.SUN FHC, including domestic banks, venture capital, and securities.

Healthy and Safe friendly workplace

E.SUN endeavors to continuously optimizing employee health care and workplace safety measures, by attaching importance to workplace safety, by implementing hazards identification, and by assessing risks, so as to reduce potentially hazardous incidents and concerns. Meanwhile, we provide diverse health promotion activities, and maintain the health of employees, unite the cohesion of employees and their families, and become the backbone of colleagues' careers, and was awarded the "Sustainable Leading Enterprise in Healthy Workforce" by the Ministry of Labor in 2023.

Occupational health and safety management system

E.SUN became the first financial institution in Taiwan to pass the ISO45001 certification, which applied to all employees and contractors. In 2023, the verification scope will be included in the newly established Second Headquarters Building, and in 2024, the re-verification of the Headquarters Building and the Second Headquarters Building will be completed.
Hazards identification and risk assessment are discussed and implemented jointly by occupational safety and health affair managers and the representative of each department every year. By introducing systems and implementing the PDCA method, workplace safety is improved, and the number of occupational injuries during working hours are effectively controlled. In the past three years, the Disabling Frequency Rate(FR) has remained stable and the Disabling Severity Rate(SR) has decreased slightly. This clearly shows that improvement measures have a positive effect on employee safety.