Corporate Governance

1. Has the Company established a governance structure to promote sustainable development and set up a dedicated (concurrent) unit to promote sustainable development, governed by the senior management as authorized by the Board of Directors, which supervises the implementation? V

(1).The Company has established a sustainability practice code in accordance with the “Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies” and disclosed it on the Company’s

(2).

• In 2023, the Company renamed its Corporate Social Responsibility Committee to the ESG Committee. Based on different job responsibilities and authority, seven functional teams were established, with members comprising senior executives of the Company, responsible for promoting and implementing the Company’s sustainable development strategies and goals, integrating them into daily operations, and reporting to the Board of Directors on the progress at least once a year.
• In 2023, the Company designated the ESG Project Business Division to be responsible for formulating sustainability policies, setting sustainability goals, and working with various units to implement sustainability action plans, as well as regularly reporting to the Board of Directors.
• The date of reporting to the Board of Directors for the current year: A report was made on November 4, 2023.

2. Does the Company conduct risk assessments on environmental, social, and corporate governance issues related to its operations based on the principle of materiality, and formulate relevant risk management policies or strategies?

(1).With reference to GRI 3: The double-materiality concept published in 2021, Good Way defines double materiality as considering both impact materiality and financial materiality. The Company conducts risk assessments on environmental, social, and governance issues related to its operations and formulates relevant risk management policies or strategies.

(2).Following the materiality assessment process, the Company identifies material sustainability issues through stakeholder engagement. The issues are then assessed and prioritized based on criteria. Relevant risk management policies and strategies are formulated accordingly. For specific implementation details, please refer to Good Way’s official website and sustainability reports.

(1).To fulfill corporate social responsibility and implement human rights protection, the Company refers to the International Bill of Human Rights and the International Labor Organization’s Declaration on Fundamental Principles and Rights at Work, and other internationally recognized human rights declarations to formulate this human rights policy. The purpose is to prevent any infringement or violation of human rights, and to ensure that the Company’s current employees receive reasonable and dignified treatment. The main implementation guidelines are as follows:

• Comply with relevant laws and regulations, and provide a safe and healthy workplace.
• Strive to maintain a workplace free from violence, harassment, and intimidation, while respecting employees’ privacy and dignity.
• No child labor under the age of 16 shall be employed, and any acts that may lead to the employment of child labor are prohibited.
• Sign written labor contracts in accordance with the law, with the contracts stipulating that the employment relationship is established based on mutual consent, and prohibiting forced labor, opposing slavery and human trafficking.
• Eliminate illegal discrimination and ensure equal employment and promotion opportunities
• stablish smooth communication channels, hold regular labor-management meetings to ensure the rights and interests of both parties.

(2). Has the Company formulated and implemented reasonable employee benefit measures (including remuneration, leave, and other benefits) and reflected business performance or achievements in employee remuneration appropriately?

The Company’s employee benefits measures and performance compensations follow the relevant regulations of the Labor Standards Act and internal management regulations.

• Employee benefit measures, employee training and education, retirement system and its implementation, etc.

  Since its establishment, the Company has actively promoted harmonious labor-management relations based on the recognition of labor-management co-existence and co-prosperity. It also values employee benefits and health, assisting employees in personal work and life to grow together with the Company.

  The following employee benefits are currently implemented by the Company:

  • A.Labor and health insurance
  • B.Clubs and health promotion activities
  • C.Educational training subsidies
  • D.Public welfare leave
  • E.Birthday leave

• Retirement system and its implementation status

  The Company’s employee retirement system originally followed the regulations of the Labor Standards Act. After the Labor Pension Act was implemented on July 1, 2005, the defined contribution system was adopted.

  After implementation, employees can choose to apply the retirement pension regulations under the “Labor Standards Act” or apply the retirement pension system under the Act and retain their years of service before the Act.

  For employees subjected to the Act, the Company’s monthly contribution rate for employee retirement pensions shall not be less than 6% of the employee’s monthly salary.

• Operating performance or results are appropriately reflected in employee compensation:
  In accordance with the Company’s performance management regulations, employee performance is evaluated twice a year, and the evaluation results are reflected in employees’ annual salary adjustments and year-end bonuses.

(3). Does the Company provide employees with a safe and healthy work environment and offer safety and health education to employees regularly?

Upholding the core philosophy of “People-Oriented,” Good Way aims for “Zero Occupational Hazards” as the ultimate goal. While employees create industrial competitiveness, the Company strives to create an “inherently safe” working environment to become the strongest shield for safeguarding employees’ health and safety. To achieve this goal, the Company has established the following five occupational safety and health policies.

Good Way independently implements ISO 45001: 2018, The Kunshan Factory in China obtained external verification for ISO 45001: 2018 in 2021 and continues to maintain the effectiveness of the management system to reduce the risks of occupational safety and health management for the Company. Meanwhile, the Taipei Factory is expected to obtain ISO 45001 certification in 2024.

To cultivate a culture of workplace safety and health, the Company provides new employees with general occupational safety and health education and training courses during orientation to establish basic safety awareness. Additionally, regular on-the-job training courses are conducted for existing employees to promote safety and health protection and operational safety awareness.

In 2023, the Company achieved zero occupational hazards. For specific measures, please refer to Good Way’s Sustainability Report.

(4). Has the Company established an effective career development training program for employees?

Good Way adheres to the training philosophy of “diverse learning enhances professional skills, promotes internalized growth learning for all employees, and transfers to improve performance and continuous improvement to meet development”. It designs a talent cultivation blueprint in line with the four spirits of “sincerity, integrity, trust, and practicality”, and integrates internal and external resources to subsidize employees’ external learning expenses, encouraging them to improve their skills in all aspects to enhance their competence and promote the mutual growth of employees and the Company.

In 2023, up to 90% of all employees received internal training, with a total of 10,650 training hours. The overall satisfaction with the education and training for the year was 4.66 out of 5.

(5). Does the Company comply with applicable laws and international standards regarding issues, such as customer health and safety, customer privacy, as well as marketing and labelling of products and services? Has it formulated relevant policies and complaint procedures to protect consumers’ or clients’ rights and interests?

The Company prioritizes customer orientation, and all products are manufactured in accordance with relevant laws and regulations, providing customers with high-quality products and excellent services.

The Company requires relevant suppliers to not use conflict minerals and prohibits the use of related hazardous substances, in order to reduce the environmental impact of products and comply with relevant domestic and international laws such as RoHS (The Restriction of Hazardous Substances in Electrical and Electronic Equipment) and customer requirements. A dedicated unit handles customer complaints, executes and tracks them according to the complaint procedures, and has obtained ISO 9001 international certification.

(6).Does the Company comply with applicable laws and international standards regarding issues, such as customer health and safety, customer privacy, as well as marketing and labelling of products and services? V

According to the “Supplier Management Procedure”, for new suppliers of main products, the Company requires them to provide a commitment letter for the compliance of environmental hazardous substances with limit values, restricted substance testing reports (i.e., RoHS or other relevant testing reports such as Reach), material safety data sheets, supplier (subcontractor) social responsibility commitment letters, and other environmental compliance declarations. Before conducting business activities with suppliers, the Company will assess whether the trading partners have no past records of negatively impacting the environment and society, as a basis for procurement transactions.

5. Has the Company referred to the internationally accepted reporting standards or guidelines to prepare reports, such as ESG reports that disclose the Company’s non-financial information? Have the aforementioned reports obtained assurance or assurance opinions from third-party verification bodies?

In addition to following the latest sustainability reporting standards (GRI: 2021) issued by the Global Reporting Initiative as the basis for information disclosure in the report, the preparation of the report also corresponds to standards such as the Task Force on Climate-related Financial Disclosures (TCFD) framework, the United Nations Sustainable Development Goals (SDGs), the Sustainability Accounting Standards Board (SASB), and the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies.

The Company’s sustainability report is self-published, with plans to complete third-party verification by July 2024.

6. If the Company has established corporate social responsibility principles based on the Corporate Social Responsibility Best Practice Principles for TWSE/TPEx Listed Companies, describe the implementation and any discrepancy：No major difference.

7. Other important information that facilitates the understanding of the promotion of sustainable development：

Please refer to the Goodway CSR section on the Company Website：http://www.goodway.com.tw