Sustainable Development Committee

A Robust Sustainable Governance Framework

The E.SUN FHC Sustainable Development Best Practice Principles, approved by the Board of Directors, serve as the company's highest-level ESG guiding principles. The Board has established a Sustainability Development Committee as the highest-level body overseeing the company's sustainability efforts. Chaired by the Chairman of the Board, the Committee comprises only Board members, including three independent directors.

According to the Sustainability Development Committee's organizational charter, the Committee shall meet at least twice a year and may convene additional meetings as needed. In 2025, it held four meetings (one each quarter). Since 2022, E.SUN has appointed a Chief Sustainability Officer (CSO). Depending on the assigned responsibilities, the Sustainability Development Committee delegates coordination of sustainability-related matters to the Sustainability Executive Committee or the CSO.

In 2025, the Board held 13 meetings, and ESG/sustainability matters were included in the agenda of five meetings. The agenda items covered: (1) the specific action plan for sustainability development; (2) progress in implementing the IFRS Sustainability Disclosure Standards; (3) the identification process for material topics and confirmation of key issues; (4) employee engagement and communication; (5) implementation progress of the low-carbon transition plan; (6) amendments to sustainability-related policies and regulations; and (7) the review and approval of the sustainability report. The Board fully discussed these items, provided guidance, reviewed the implementation status of each plan, and, where appropriate, urged the management team to make timely adjustments.

2025 Board ESG Oversight Highlights

Category	Agenda Item	Rationale & Key Progress
Regulatory Compliance and Risk Managemen	2024 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, Risk Management, and Internal Audit	Implementation Plan for IFRS Sustainability Disclosure Standards and Internal Control over Sustainability Information Management	E.SUN has aligned with the Financial Supervisory Commission's roadmap by adopting the IFRS Sustainability Disclosure Standards effective 2026. This move also supports Taiwan's internal control regulations, which require listed companies and financial institutions to integrate sustainability information management into their internal control systems and annual audit processes. To ensure smooth implementation, E.SUN FHC formed a cross-functional task force and created a detailed implementation plan and timeline. Progress has been reported to the Board on a quarterly basis since 2025. After Board approval in March 2026, E.SUN published a dedicated chapter on its 2025 sustainability-related financial disclosures.
Risk Managemen	mplementation Progress of the Low-Carbon Transition Plan	E.SUN has initiated a "Five-Year Low-Carbon Transition Plan" toward the 2050 net-zero goal. Aligned with EU, ASEAN, and Taiwan taxonomies, E.SUN utilizes a transition maturity framework to guide its investment, lending, and engagement via 13 mechanisms. This approach aims to "support rather than exclude high-carbon industries," thereby effective meeting the transition needs of SMEs.
Regulatory Compliance and Risk Management	Revision of the Company's Sustainable Development Best Practice Principles	To deepen its sustainability practices and align with the latest regulatory updates, E.SUN has revised its “Sustainable Development Best Practice Principles. "The revision incorporates new evaluation items beneficial to the environment and society, including the humanities and arts, biodiversity, and industry-academia cooperation.
	Revision of the Company's Sustainability Development Committee Organizational Regulations	To reflect organizational and responsibility adjustments, E.SUN has revised its “Sustainability Development Committee Organizational Regulations. "The revision aligns supervision and resolution workflows with the new structure following the establishment of the "Sustainability Executive Committee" in July 2025.
	2025 Identification process and confirmation of material issues	To strengthen Board supervision, E.SUN identified 11 key sustainability topics out of the 20 evaluated, based on GRI and AA1000 standards, including the 2021 GRI Universal Standards. These topics guide strategic sustainability planning and disclosure focus in the 2025 Sustainability Report (see ch.1.4 for details).