Organization Framework of Sustainable Governance

FENC stays current on sustainability issues and makes policy adjustments accordingly, with related affairs carried out through Sustainability Implementation Committee.

FENC established the Sustainability Implementation Committee in 2014 to facilitate corporate sustainable development. The President of Corporate Management serves as the convener. Specific tasks for the Sustainability Implementation Committee are as follows:

Compilation and disclosure of sustainability data.
Planning and implementation of sustainability projects.
Compilation and submission of sustainability data for external verification.

The Sustainability Implementation Committee consists of 186 members in 2024. The committee structure parallels the corporate structure. Among the members are Presidents and Chief Operating Officers from all Businesses, departmental managers at FENC operation sites worldwide and the 3 designated members of the Sustainability Team under Corporate Staff Office.

Structure of Sustainability Governance

Disclosure of Sustainability Data

The annual sustainability performance disclosed in this report is first presented by the Sustainability Implementation Committee, which is then verified, analyzed and consolidated by the Sustainability Team at the Corporate Staff Office. The report is finalized and published after receiving third-party verification and approval from the President of Corporate Management. For the 2025 Sustainability Report, submissions for approval were made by the Sustainability Committee and the Board of Directors on April 29 and May 13, 2026.

The FSC released the Roadmap for Taiwan Listed Companies to Align with IFRS Sustainability Disclosure Standards on August 17, 2023. According to the roadmap, FENC is subject to the IFRS Sustainability Disclosure Standards in 2026 due to having a paid-in capital of more than NT$10 billion. Hence, FENC is making its 2026 disclosure in accordance with the IFRS Sustainability Disclosure Standards, and the disclosure will be released in 2027 in the dedicated section for sustainability-related financial information in the FENC Annual Report. The groundwork for phase 1: analysis and planning was laid in the fourth quarter of 2024 following the guidelines and regulations issued by the authority, which includes four major tasks. The tasks are establishing an inter-departmental task force; making preliminary identification of major discrepancies between current sustainability disclosure standards and the IFRS Sustainability Disclosure Standards as well as the impact; making preliminary identification of reporting bodies; formulating the implementation plan. Phase 2: design and implementation was completed in 2025, which encompasses identifying sustainability issues; sustainability-related risks and opportunities; scope of value chain; evaluation of material sustainability-related information; identification and collection of necessary information; establishing the procedures for collecting financial and non-financial information; calibrating information systems and internal control systems. Beginning in the first quarter of 2025, the implementation progress has been presented to the Board for management and control and reported to the government authority on a quarterly basis. The Audit Department implemented an audit project in 2025 to examine the implementation process of the IFRS Sustainability Disclosure Standards. After reviewing the meeting minutes, issues identified and documents submitted to the Sustainability Committee and the Board, the Audit Department confirmed that all procedures regarding the identification of sustainability issues, risks and opportunities identification, data collection, control mechanisms and reporting procedures are in compliance with the regulations set forth by the authorities. The FSC, Ministry of Environment, Ministry of Economic Affairs, Ministry of Transportation and Communications, Ministry of the Interior and Ministry of Agriculture released the second edition of the Taiwan Sustainable Taxonomy at the end of 2024. The scope of applicable economic activities has been expanded to include industries under which FENC falls, and the Company has started evaluating the disclosure involved.

Based on the Taiwan Stock Exchange Corporation Rules Governing the Preparation and Filing of Sustainability Reports by TWSE Listed Companies, FENC established the Operating Procedures for the Preparation and Assurance of Sustainability Reports, which was integrated into the internal control system to strengthen the reporting and verification mechanisms. The second edition of the operating procedure was completed in 2024 and implemented after the Board approval. The Audit Department has incorporated sustainability data management into the internal control system and annual audit plan as mandated for listed companies by the FSC and audited the operation of sustainability data management in 2025, confirming the compliance of the preparation, scheduling, data entry, information compilation and review of the FENC Sustainability Report with the Company’s operational standards without deficiencies. In addition, to strengthen the management of sustainable information, the Company established the Operating Procedures for Sustainability Information Management in 2025, which governs the collection, documentation, processing, compilation, adjustment, approval, publication, storage and access of sustainability information. The regulation was approved by the Sustainability Committee on February 25, 2026 and the Board on March 11, 2026, superseding the Operating Procedures for the Preparation and Assurance of Sustainability Reports as it has been incorporated into the internal control system.

To facilitate data collection, digitization and preservation, FENC introduced the ESG Portal in 2022. Company forms, which used to be delivered only through emails, are now partly digitized to be completed, submitted and reviewed on the portal. The ESG Portal also sends reminders for overdue documents, which has improved the overall operational efficiency. The portal optimization continued in 2025, and AI was utilized to produce seven bilingual (Chinese and English) instructional videos, which were uploaded to the portal as learning tools for users.

Sustainability Report Preparation Process

Profile and Duty of Sustainability Implementation Committee

Units	Corporate Sustainability Duties
Sales	Communicate and maintain amiable relationship with customers; improve product quality through customer feedbacks (such as customer satisfaction survey).
Production	Ensure product quality meets customers' expectation; apply green and recycled manufacturing process; implement environmentally friendly project, improve efficiency of energy, resources and material; take preventive measure on pollution.
R&D Center	Continued development on product and technology of green and recycled materials, high functional materials and smart materials; increase competitiveness of company products; promote a green, energy-saving, recycled and sustainable development.
Labor Safety & Health Dept.	In charge of regulation formulation, coordination and supervision of employee safety and health related issues at all manufacturing sites.
Human Resources Dept. / Learning & Development Center	In charge of employees' recruitment, salary, performance appraisal and education training. Formulating company regulations on human rights, child labor, ethical behavior and integral operation. Maintain harmonious relationship and smooth communication between employers and employees.
Purchasing Dept. / Raw Material Team	Ensure suppliers are in compliance with regulations on environment, labor, human rights and social norms. Suppliers are asked to sign commitment on social responsibility to carry out sustainable supply chain management. Stabilize raw material supply and minimize the risk of price fluctuation.
Energy Task Force	Conduct meetings regularly to review energy usage on all manufacturing sites. Formulate energy saving policy and continuously follow up on performance of energy saving projects, greenhouse gas, water resources, wastes and air pollution. Hold meetings on energy saving, locate opportunities to improve and introduce energy saving technology and optimize energy efficiency on all manufacturing sites.
Accounting / Finance Dept.	Audit financial performances, control capital expenditures for major investment, manage funds and lower financial risk.
Secretarial Dept.	Arrange meetings for Board of Directors and top management team to ensure smooth process of company strategy formulation. Formulating energy saving policy for Taipei Metro Building and continue to follow up on performance of energy saving project.
Audit Dept.	Audit and continued appraisal of internal control, assist in implementation and execution of internal control system by inspection and review to lower mistakes and prevent malpractice and raise operation efficiency in order to maximize profits for the Company as a whole.
Legal Dept.	Implement regulation compliance system including updating regulation changes, providing legal consultation, education training and onsite inspection of legal compliance. For violation, establish reporting channel and notify the Board, provide assistance for improvement and continue to track condition of improvement.
Shipping Dept.	In charge of importing, exporting and shipping. Require transportation carriers to comply with regulations and strive for green and low carbon emission in transportation.
Information Security Dept. / Information & Technology Center	Protect information safety, integration of resources and development of information system to provide efficient management tools for all departments.
Foundation	Place resources in education, medicine, sports, environment, scientific innovation, arts and culture. Promote public interests by giving back to society and actively participate in related activities.
Land Development / FERD	In charge of property development, leasing, operation and management. Increase resources efficiency and build a sustainable park which is eco-friendly, green, energy-saving and smart.
Corporate Staff Office Sustainability Team	There are 3 full time employees in charge of coordination of Sustainability Implementation Committee operation, implementation of corporate sustainability projects, integration of related information, results and performance report to top management team and the Board.