ESG Strategies and Goals

Chipbond has established the "Chipbond Technology Sustainability Policy" and formed a risk management team within the ESG Committee. This team consolidates risk assessment results from various risk management units and develops improvement plans for potential operational impacts. Regular reports are provided to the Board of Directors on these matters.

• Completed assessments of six major risk categories and reported the results to the board of directors.

• Completed risk assessments in six major categories, and the ESG committee submitted the risk management report to the board of directors on October 28, 2022.

• Continuously improve the enterprise risk management mechanism by assessing the risks and opportunities of ESG issues on company operations.

Governance officer is appointed to assist directors in their roles, provide necessary information for business execution, and ensure compliance with laws and regulations. Chipbond actively participates in corporate governance evaluations and board performance assessments to continuously enhance its corporate governance system and strengthen the functions of the board of directors.

• Independent directors account for over 50% of the board.
• The number of directors who concurrently hold managerial positions should not exceed one-third of the total board seats.
• At least one female director is seated on the board.

• Independent directors account for 50% of the total board seats.
• There are two directors who concurrently hold managerial positions, which is less than one-third of the total board seats.
• One female director is seated on the board.
• Ranked in the top 5% of the 9th Corporate Governance Evaluation for OTC companies.

• Continuously improve compliance with corporate governance evaluation indicators and strive to maintain a ranking in the top 5% of corporate governance evaluations.
• Revise the company's official website to enhance information disclosure.

Through the operation of the QC080000 Hazardous Substance Management System, we ensure that its products are free from hazardous substances and conflict minerals. Suppliers are required to sign the "Supplier Code of Conduct Declaration" and are selected, evaluated, and audited to jointly fulfill corporate social responsibilities.

• Timely updates of finished product ICP reports with a compliance rate of 100%.
• Number of abnormal cases in hazardous substance testing for finished products is less than or equal to zero.
• Completed investigations on conflict minerals in the raw material supply chain for 100% of cases.

• Completed 38 finished product ICP reports with a 100% on-time update rate.
• Completed testing for 37 products for hazardous substances, and the test results were all in compliance with regulatory requirements.
• Completed investigations on conflict minerals for 12 related raw material suppliers with a 100% completion rate.

• Regularly conduct conflict minerals investigations to ensure that finished products do not contain conflict minerals.

We have established an information security management system based on ISO 27001. Through the development of management regulations, education, training, and awareness programs, as well as regular risk assessments, potential information security risks are identified and continuous improvement measures are implemented to ensure the effective operation of critical information systems.

• Achieved ISO 27001 certification for the third-party audit of information security management systems.

• The corporate headquarters passed the ISO 27001 certification for information security management systems.

• Implement dynamic sandbox mechanisms.
• Implement security information and event management platforms.

Establishing a robust corporate governance mechanism, Chipbond is led by the board of directors and various functional committees to ensure the stable operation and development of the company.

• Maintained profitability and achieved operational goals set by the company.

• Consolidated revenue reached NTD 24.01 billion.

• Basic earnings per share after tax were NTD 8.41.

• Dividend per share was NTD 5.5.

• Maintain profitability and achieve the company's operational goals.

Establishing a quality management system based on ISO 9001 and IATF 16949 standards, we strive to enhance product quality and production efficiency, and meet customer requirements through the operation of the management system, continuous improvement, and quality control activities.

• Service satisfaction indicators for all customer service-related units have been met.

• Overall customer satisfaction reached 8.82 points, and the related responsible units met their KPI targets without requiring corrective measures.

• Continuously provide high-quality services to meet customer needs.

Using the TCFD framework, we identifie the risks and opportunities associated with climate change.

• Reduced electricity consumption by 3,500,000 kWh annually compared to the previous year.
• Continuously expanded the installation of solar power generation equipment.
• Completed third-party verification of greenhouse gas emissions according to ISO 14064-1.

• Implemented 37 key energy-saving projects, estimated to save approximately 7,646,937 kWh of electricity; achieved an energy-saving rate of 2.37%.
• Completed the installation of a 46.23 KWp solar power generation system at the Guofu plant.
• Completed assessments for the installation of rooftop solar power generation systems in various plant areas.
• Electricity intensity decreased by 10.97% compared to the baseline year.

• Implement ISO 50001 energy management system and obtain certification.
• Achieve a 3,151,559 kWh reduction in electricity consumption in 2023 compared to 2021.
• Continuously install renewable energy generation equipment on the rooftops of 4 Plants.
• Reduce 15% electricity intensity by 2025 compared to the baseline year of 2015.

Establishing an environmental management system based on ISO 14001, Chipbond aims to improve water resource efficiency. We implement measures such as process water conservation, enhancing process water recycling capabilities, integrated water resource utilization, and contingency plans. These initiatives are designed to optimize water resource usage and minimize environmental impact.

• Reduced water consumption by 20% in the expansion factory grinding machine dust collector.
• Improved water recycling rate in the cutting process at South 6th Plant from 70% to 85%.

• Improved water usage in grinding machine dust collectors, reducing water consumption by approximately 52,580 metric tons annually (about 33%).
• Increased water recycling rate in the cutting process at South 6th Plant to 85%, resulting in an annual increase of approximately 13,682.4 metric tons of recycled water.
• Water intake intensity decreased to 82.70 metric tons per million revenue, a 33.65% reduction compared to the baseline year.

• Reduce 40% water intake intensity by 2025.

Under the ISO 14001 management system, Chipbond emphasizes continuous improvement in waste management. Our approach focuses on waste reduction in processes, followed by consideration for reuse, and finally disposal. When it comes to disposal, we carefully select waste removal and recycling vendors, and periodically send representatives for auditing to ensure proper waste handling.

• Enhanced recycling and reuse of process waste materials.
• Increased solvent recovery and reuse rate.

• Silicon sludge from the grinding wastewater treatment system was entrusted to a recycling vendor, with a total of 185.38 metric tons recycled.
• Copper sludge recovery reached a total of 397.38 metric tons.
• Organic solvent recovery and reuse rate reached 88.67%.

• Achieve 90% recycle rate of waste organic solvent by 2025.

Chipbond has developed its " Chipbond Human Rights Policy" in accordance with international standards. Through our personnel regulations and systems, we establish standards for personnel management. We are committed to promoting gender equality and ensuring the protection of human rights. We regularly conduct human rights risk assessments and establish effective communication channels to reduce the likelihood of human rights risks occurring.

• 90% of employee complaints and suggestions were addressed within the specified time frame.

• Processed 68 cases of employee feedback and complaints through the designated mailbox.
• Reached agreements on 41 matters in the labor-management meeting, achieving a 100% agreement rate.

• Enhance policies and advocacy on workplace diversity and gender equality.
• Establish an "Employee Rights and Q&A Platform."

By implementing the ISO 45001 Occupational Health and Safety Management System, we aim to prevent work-related injuries and illnesses and ensure the health and safety of our employees. Through the operation of the management system, risk assessments are conducted to identify potential hazards and implement appropriate control measures. We are committed to continuous improvement in occupational health and safety practices, ensuring a safe working environment for all employees.

• Continued improvement in enhancing plant safety to prevent occupational accidents.

• Proposed 223 improvement measures in the Environment, Safety and Health Management Committee.
• Zero cases of occupational injuries causing disabilities.

• Continuously improve and enhance factory safety to prevent incidents and injuries.