Sustainable Development Committee

The “E.SUN FHC Sustainable Development Best Practice Principles” approved by the Board of Directors, is the highest ESG guiding principle across the entire company. The Board has established a Sustainability Development Committee as the highest overseeing body for the company‘s sustainability efforts. The committee is convened by the Chairman and is composed entirely of board members, including three independent directors.
According to the Sustainability Development Committee‘s organizational regulations, the committee shall meet at least twice annually and may convene additional meetings as necessary. In 2024, the committee plans to hold at least one meeting per quarter. Since 2022, E.SUN has appointed a Sustainability Executive Committee, and the Sustainability Development Committee assigns this officer to coordinate all sustainability-related departments.

Among the nine board meetings held annually, ESG/sustainability matters are included in the agenda for five meetings. The agenda items include: (1) Implementation status of sustainable development; (2)Employee feedback and communication; (3)Sustainability report; (4)Sustainability-related policies and regulations; (5)Financial carbon emission management system; (6)IFRS sustainability disclosure standard implementation plan; (7)Identification process and confirmation of E.SUN‘s material issues. (8) Action Plan for Sustainable Development. During meetings, the Board discusses and provides questions or suggestions on these agenda items. After thorough discussion, the directors review and supervise the progress and implementation of the plans, and when appropriate, urge the management team to make timely adjustments.

Category	Agenda Item	Rationale & Key Progress
Regulatory Compliance & Risk Management	2023 Sustainability Report	Designed to mitigate greenwashing risks and improve disclosure quality, was approved by the Board before public release. The report adheres to international frameworks such as GRI Standards, UN SDGs, SASB, and benchmarks against leading domestic and global peers. Data and content have been externally reviewed by BSI and PwC for accuracy and compliance.
Regulatory Compliance & Internal Audit	IFRS Sustainability Disclosure Standards and Internal Control System Implementation Plan for Sustainability Information Management	In alignment with the Financial Supervisory Commission‘s roadmap for IFRS Sustainability Disclosure Standards, E.SUN began implementation in 2026. A cross-departmental task force was established with a detailed rollout plan, reporting quarterly to the Board since 2025 to ensure compliance and timely disclosure of sustainability information under IFRS standards by 2027.
Risk Management	Revision of E.SUN's Sustainable Finance Policy	The Sustainable Finance Policy was updated to reflect international trends and enhance risk and opportunity management. The revision includes stricter oversight on high-risk sectors such as coal-fired power, tobacco, gambling, leather processing, and mining to better manage potential business impacts.
Risk Management	Material ESG Topics for 2024	To strengthen Board supervision, E.SUN identified 12 key sustainability topics out of 21 evaluated, based on GRI and AA1000 standards and the 2021 GRI Universal Standards. These topics guide strategic sustainability planning and disclosure focus in the 2024 Sustainability Report (see ch.1.4 for details).