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▶️Corporate Sustainable Development Goals

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 sustainability operations of WPG Holdings. The Chief Sustainability Officer of the holding company serves as the Committee convener. All of the Committee members consist of directors, including the Chairman of the Board of Directors, the Chief Executive Officer and an independent director, in order to drive the setting of the Group’s overall sustainability goals and execution of concrete action plans effectively, and incorporate ESG concepts into business strategies to demonstrate the determination for sustainable operations. Every year (at least once a year), the Committee reports to the Board of Directors on the ESG implementation plan and promotion results.

The Sustainability Committee held a total of 4 meetings in 2024, with an attendance rate of approximately 93.75% (excluding proxy attendance).

The Board of Directors of WPG Holdings regularly supervises the progress of various ESG (Environmental, Social, and Governance) sustainability projects and activities. The Sustainability Committee Chairperson reports to the Board at least once a year, presenting the ESG annual plans or goals, ESG implementation progress, and outcomes. Based on the report, the Board evaluates and reviews the progress, offers adjustment suggestions, and approves actions to ensure that the overall direction aligns with the group's objectives. In 2024, four reports were submitted to the Board, including the following topics :

（1）EESG key project progress report;
（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）Setting of annual work objectives;
（6）Revisions to sustainability-related policies, which are submitted by the responsible units.

Five Functional Sub-committeesof the Sustainability Committee

To effectively integrate resources and embed the concept of sustainable development into daily operations, There are five functional groups under the ESG Committee, namely the “Corporate Governance Group,” “Environmental Sustainability Group,” “Sustainable Talent Group,” “Social Participation Group ” and “Supply Chain Group.” The first-level executive of each relevant functional unit is responsible for promoting various projects or measures to respond to material issues.

ESG Office

To assist in the coordination, planning, and management of the group’s sustainability development affairs, WPG Holdings established a dedicated sustainability unit at the beginning of 2022, directly reporting to the Chief Sustainability Officer . The ESG Office periodically analyzes domestic and international sustainability trends and reports the progress of sustainability initiatives to the Sustainability Committee on a quarterly basis. It also regularly tracks the effectiveness of execution, establishes continuous improvement plans, and ensures the stable implementation of all sustainability projects. Furthermore, to ensure that the members of the Sustainability Committee are regularly updated on sustainability trends and the latest developments in sustainability, the ESG Office began issuing a biweekly sustainability report starting from the fourth quarter of 2023. 

Stakeholder Identification and Communication

 "To Cultivate lasting partnership for sustainable success" is WPG's corporate mission. Therefore, collaborating closely with stakeholders and exploring how to create value for them is a key priority for WPG Holdings. Through a variety of regular and ad hoc engagement channels, we actively listen to stakeholder feedback, engage in constructive dialogue, identify material concerns, understand their expectations, and respond appropriately. These efforts form a vital foundation for our 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 methods and 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 each, 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 (manufacturers/IC design), shareholders/investors, and banks. Considering the high relevance of these six stakeholders to operations and business, dedicated communication mechanisms and contact channels are established to understand improvement suggestions and feedback. These are incorporated into future policy formulation or action plans, continuously strengthening the focus on issues of concern to stakeholders and responding to their expectations.

•  Stakeholder Communication Channels

To ensure that the disclosed sustainability information meets the stakeholders' expectations, WPG Holdings adopted a systematic analysis every two years to identify material sustainability topics. The company has produced the 2024 sustainability issues list by referencing industry peers, supply chain concerns, past issue analysis results, GRI universal standards topics, international trends, and industry characteristics. The Sustainability Committee invited the senior executives at the level of CXO and above in WPG Holdings and each group to assess the operational impacts and significant risks. Based on the degree of actual and potential impacts on the environment, economy, and people (including human rights), the “level of stakeholders' concerns about the topics,” and the “level of importance of topics to WPG Holdings' operations,” stakeholders' opinions were collected and integrated to complete the matrix of material topics for the year.

Analysis Methods and Steps for Material Topics

Material Topics and Basic Topics

According to the above analysis, the 2024 material topics matrix and bar chart of operational impacts produced were used to illustrate the key topics of focus for the year, serving as the basis for this report. The performance and management results related to each material topic were presented as strategic targets for sustainable management planning and practice in 2025. The following 9 topics are the material topics for the company, including 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. 

Significance of Key Stakeholders and Communication Mechanisms