ESG and Sustainable Development Committee 

The WPG ESG and Sustainable Development Committee (hereinafter referred to as “the Sustainability Committee”) is the highest steering body for the promotion of sustainability governance operations of WPG Holdings. The Chief Sustainability Officer of the holding company serves as the Committee convener, and the Committee members consist of directors, including the Chairman of the Board of Directors, the Chief Executive Officer, and an independent director. Through this top-down governance structure, the committee is responsible for shaping and guiding the Group’s overall sustainability vision, strategy, and long-term development roadmap. ESG shared values are incorporated into business strategies to effectively drive the Group’s overall sustainability goals and the execution of action plans, demonstrating the determination for the implementation of sustainable operations. 

A regular reporting mechanism is established, and the ESG implementation plan and promotion results are reported to the Board of Directors at least once a year to ensure that various ESG policies are effectively implemented. In 2025, a total of 4 meetings were held by the Sustainability Committee, and a100% attendance rate was reached (excluding proxy attendance), demonstrating the high emphasis and active participation of the Board in sustainability issues.

Directors of WPG Holdings, with regular supervision and review of the implementation progress of various ESG-related projects and actions. Annual ESG plans, strategic goals, implementation progress, and outcomes are reported to the Board at least once a year by the Sustainability Committee Chairperson for an overall review and assessment. Based on the submitted content, guidance on strategic direction and adjustment suggestions are provided by the Board, with approvals issued on key matters to ensure that the sustainability direction aligns with the Group’s operational objectives.

In 2025, the Sustainability Committee made four submissions to the Board of Directors, covering the following agenda items:
(1) ESG key project progress report (including annual results of the Group's ESG training);
(2) Sustainability report (including the results of materiality analysis);
(3) Group greenhouse gas inventory planning and progress report;
(4) Domestic and international sustainability trends and policies;
(5) Formulation of annual work objectives;
(6) Revisions to sustainability-related policies, which are submitted by the responsible units.

Five Functional Groups of the Sustainability Committee 

To effectively integrate resources and embed sustainable development concepts into daily operations, five functional groups are established under the Sustainability Committee: the "Corporate Governance Group," "Environmental Sustainability Group," "Sustainable Talent Group," "Social Participation Group," and the "Supply Chain Group." Each functional group is led by first-level executives from relevant business units to promote various projects and measures. These initiatives are expanded through a bottom-up implementation model to respond to material issues across all dimensions.

ESG Office

To assist in the coordination, planning, and management of the Group’s sustainability development affairs, a dedicated unit, called the "ESG Office," was established in the beginning of 2022, reporting directly to the Chief Sustainability Officer and serving as the executive hub for the group's sustainability governance. Domestic and international sustainability development trends are periodically collected and analyzed, with progress reports on sustainability initiatives presented to the Sustainability Committee on a quarterly basis. Through the regular tracking of execution effectiveness, continuous improvement mechanisms are established to ensure the stable implementation of all sustainability projects. Furthermore, to assist members of the Sustainability Committee in promptly grasping sustainability trends and international developments, a "Bi-weekly Sustainability Report" has been issued since the fourth quarter of 2023. These reports consolidate important sustainability issues and key global trends to continuously deepen the sustainability vision of directors and senior executives, strengthening the foresight and decisionmaking quality of the Group’s sustainability governance.

Stakeholder Identification and Communication

"To Cultivate lasting partnership for sustainable success" is upheld as the corporate mission of WPG Holdings. Consequently, collaborating with stakeholders and exploring ways to facilitate mutual growth are prioritized as key management tasks. Through a variety of regular and ad hoc communication channels, stakeholder’s feedbacks are actively attended to, fostering dialogue and engagement, and identifying the issues that are most material and important to each stakeholder group. A deep understanding of stakeholder expectations and the provision of appropriate responses serve as a vital foundation for the pursuit of sustainable development.

Identification of Stakeholder

In order to accurately identify the impact of each issue on operations and to reflect the concerns and expectations of stakeholders, the steps for identifying material topics adopted are as follows: WPG Holdings, based on the scope of its impact, identifies stakeholders who may be affected by or have an impact on the group. By assessing the influence of the 12 categories of stakeholders were identified. To ensure the systematization and objectivity of stakeholder identification, the process follows the AA1000 Stakeholder Engagement Standard (AA1000) principles, evaluating stakeholders based on five aspects: Responsibility, Tension, Influence, Diverse Perspectives, and Dependency.

Through a stakeholder identification survey, each functional department assessed the 12 categories of stakeholders. After analyzing the responses, six categories of stakeholders with significant influence on WPG were selected, including: employees, customers, government agencies, upstream suppliers (IDM/Fabless/IC design), shareholders/investors, and banks. Considering the high relevance of these six stakeholders to operations and business development, dedicated communication mechanisms and contact channels are established to understand improvement suggestions and feedback. These are incorporated into future policies or action plans, continuously strengthening the focus on issues of concern to stakeholders and responding to their expectations.

 The significance of these stakeholders to WPG Holdings are explained as follows :

Stakeholder Communication Channels 

1. Stakeholder Area and Email: A dedicated stakeholder section is set up on the company's official website, providing real-time and smooth communication channels.

2. Whistleblowing and Protection: To respect and protect the legitimate rights and interests of stakeholders, a thirdparty managed whistleblowing platform is established to provide internal employees and external stakeholders with a safe and accessible channel for reporting issues and making anonymous complaints. Simultaneously, the "Stakeholder Suggestion and Complaint Handling Procedure" is implemented to build a robust whistleblower protection mechanism. A commitment to maintaining the confidentiality of the whistleblower’s identity is upheld, ensuring that whistleblowers are not subject to inappropriate treatment or retaliation due to their suggestions or complaints.

3. Employee Communication Platform: Commitment is directed toward constructing harmonious labor relations and actively creating transparent and open communication mechanisms. Through regular group-wide employee meetings, the establishment of employee grievance emails, and the ad hoc implementation of employee opinion surveys, needs and expectations across all aspects of work are promptly understood and addressed. Additionally, quarterly labor-management meetings are held to facilitate two-way communication regarding policy implementation, major events, and issues of concern to employees. Through active listening and substantive responses, employee rights are safeguarded, with the aim of deepening employees' identification with the company and enhancing their sense of belonging.

 ● Significance of Key Stakeholders and Communication Mechanisms

Analysis of Material Topics

To ensure that the disclosed sustainability information meets stakeholder expectations, a systematic analysis is adopted by WPG Holdings every two years to identify material sustainability topics. An annual sustainability issues list is established by referencing industry peers and supply chain concerns, previous materiality analysis results, GRI Universal Standards topics, international trends, and industry characteristics. Subsequently, senior executives at the CXO level and above from the holdings and each group are invited by the Sustainability Committee to assess operational impacts and significant risks. Stakeholder opinions are collected and integrated based on dimensions including the "significance of actual and potential impacts on the environment, economy, and people (including human rights)," the "level of stakeholder concern," and the "level of impact on WPG Holdings' operations" to construct the materiality matrix for the year.

Analysis Methods and Steps for Material Topics

To accurately identify the impact of each issue on operations and to reflect the concerns and expectations of stakeholders, the methods and steps for identifying material topics adopted are as follows :

Material Topics and Basic Topics

The results of the previous year’s identification are reviewed for 2025. Based on the prior year’s material topics matrix and operational impact analysis, key issues are established as indicators for report preparation, with no adjustments made compared to the 2024 material topics. The 9 material topics identified for priority management this year are listed in order: Corporate Governance, Operational Performance and Financial Results, Risk Control and Management, Product Distributorship and Customer Satisfaction, Information Security and Data Privacy, Product Trade Compliance, Occupational Health and Safety, IP Asset Management and Protection, and Talent Attraction and Retention.

Management Approach for Material Topics

Align the material topics with the United Nations Sustainable Development Goals and develop management approaches and set work objectives for each material topic.

● Impact Boundaries of Material Topics and Corresponding Chapters

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