Sustainable Management

ESG Operation and Performance Communication with Stakeholders Analysis of Material Topics Sustainability Goals and Performance

Sustainable Development Policy

Sustainable Development Policy
In accordance with the Sustainable Development Best Practice Principles, Tung Ho Steel established the following Sustainable Development Policy, which was approved in the 18th meeting of the 23rd session of Board of Directors on December 31, 2019.
Integrity Governance	Implement corporate governance, establish high-quality corporate culture, and work for corporate integrity management.
Economic Sustainability	Innovative technical services, enhance operating performance, maintain stable profitability and work for sustainable operations.
Environmental Protection	Actively respond to climate change, promote circular use of resources, continue to reduce waste, energy use and carbon emissions and work for the implementation of environmental protection.
Friendly Workplace	Establish a sound and complete system and harmonious labor-employment relations, and create a safe and friendly workplace environment.
Social Prosperity	Reward academic and humanistic development, pay attention to social issues, actively participate in public welfare activities and work for social prosperity.

Organizational structure of Corporate Social Responsibility Team

To implement the promotion of corporate social responsibility, Tung Ho Steel established the “Corporate Social Responsibility Best Practice Principles” in 2015 (changed to “Sustainable Development Best Practice Principles” on March 10, 2022). A new functional committee, Corporate Governance Committee, was added to the Board of Directors in September 2019, and the Corporate Governance Committee was renamed the Corporate Governance and Nominating Committee upon the revision of the Articles of Incorporation in the shareholders’ meeting held in 2021. In the shareholders’ meeting held on May 30, 2023, it was passed to revise the Articles of Incorporation and rename it the “Sustainable Development Committee” to adjust the authorities among the functional committees.

Sustainable Development Committee of the board of directors of the Company is in charge of the decision-making and supervision of sustainable development related work, under which are the Environmental Sustainability Group, Corporate Social Responsibility Group, and Corporate Governance Group, which are respectively responsible for:

The establishment, supervision and review of the Environmental sustainability (climate change management) system and goals.
The establishment, supervision and review of the sustainable development policies, system, or relevant management approaches of the corporate social responsibility.
The establishment, supervision and review of relevant policies in relation to corporate governance, integrity management, and risk management, and the management mechanisms.

The members include representatives from all units of the Head Office, factories, and the Foundation. The Administration Department is in charge of the secretariat business, including the overall planning, communication and integration, data collection, and the editing and revision of the sustainability report.

Year	Development
2016	Voluntary publication of the first CSR Report
2017	Established Rules Governing the Internal Verification of Corporate Social Responsibility Report
2018	Tung Ho Steel was included in TWSE Corporate Governance 100 Index
2019	The CSR Team was incorporated into the Corporate Governance Committee and is subordinate to the Board of Directors Established CSR policy and human rights policy
2020	Established Risk Management Policy Established Supplier Management Policy
2021	In the shareholders’ meeting held in July, it was passed to revise the Articles of Incorporation and rename the Corporate Governance Committee “Corporate Governance and Nominating Committee”. Publication of the first English Sustainability Report Publication of the first TCFD Report
2023	Passed the proposal of setting the Appropriation and Use of Special Surplus Reserve in Response to Climate Change Adaptation and Mitigation. 2030 Sustainable goals: Carbon reduction 30% + RE30

To ensure that the Sustainable Report issued by Tung Ho Steel conformed to GRI requirements and the prescriptions of Taiwan Stock Exchange Corporation Rules Governing the Preparation and Filing of Sustainability Reports by TWSE Listed Companies, the Rules Governing the Preparation and Internal Verification and Validation of Sustainability Reports was passed on April 14, 2022, and the internal verification operation of the Report is conducted from every March to May to serve as a basis for the preparation, international verification and validation related work.

Education and training on the current ESG condition and trends was conducted in November, 2022, and the content included sustainable development and challenges, international trends, current legal prescriptions, introduction of revision of GRI Standards for topics and so on. In addition, meetings for stakeholder identification and questionnaire distribution were held. After data collection, meetings for group discussion and first draft discussion were convened in January and April, 2023. The verification team conducted the internal verification operation, and the Report was verified by an impartial third party. The issuance of this 2022 Corporate Sustainability Report was reported to the 8^th meeting of the 2^nd Session of Corporate Governance and Nominating Committee and the 27^th meeting of the 24^th Session of Board of Directors in May, 2023. The Report was assured by independent and credible British Standards Institution (BSI) for the verification of this Sustainable Report and was issued upon the approval of the chairman.