Sustainability Management Organization

Primax has established the ESG Office under the authorization of the Board of Directors,with Vice General Manager Chiang, Yan-Ying as the convener. The ESG Office aims to implement corporate governance, promote sustainable environmental practices, uphold social welfare, and enhance information disclosure as the four key aspects of corporate sustainability development. To address the economic, environmental, and social impacts, the ESG Office has formed three subcommittees: Corporate Governance, Green Operations,and Social Care. These subcommittees collect external advocacy information related tothe economic, corporate governance, environmental, and social aspects that are relevant to the company's operations. They are responsible for engaging with stakeholders, aligning interests, and prioritizing significant issues based on the outcomes of stakeholder engagement. The ESG Office presents the corporate vision blueprint to the Board of Directors, formulates relevant policies, systems, or management guidelines for corporate sustainability, and subsequently obtains the Board's approval for specific implementation plans.

Sustainability Govenance Process 

The ESG Office reports to the Board of Directors semi-annually, providing updateson stakeholder communication, significant events and disclosure material issues, greenhouse gas inventory conclusions, annual execution plans, and more, prior to the publication of the sustainability report. The specific implementation plans are then approved by the Board. At the end of the year, the ESG Office reports on the achievements of the planned executions,risk assessment results, and corresponding measures. This demonstrates Primax’s strong commitment to implementing sustainable development. The Board of Directors convened atotal of 8 meetings in 2023 . The contents of sustainability-related motions are shown in the table below.

Under the authority and vision of the board of directors, the ESG Office is required to assist fellow departments and units in the implementation of ESG projects in a manner that conforms with the Company's economic, environmental and social efforts. The ESG Office is also responsible for gathering informationsuch as stakeholders' feedbacks on issues of concern, local and global sustainability trends, and best practices of industry leaders, as well as offering suggestions and guidance to departments for the sustainability of the Company.In 2022 , the Board of Directors approved Primax Group's Sustainability Strategy Roadmap and authorized under the Roadmap the Chairman to agree to a total of 29 goals to be implemented by various business and staff units. Meanwhile, since 2023 , it has formulated the variable remuneration forsenior management teams including the vice president and above by 10 ~ 15 % linked to ESG performance. The performance assessment standards includethe Company’s performance indicators, annual strategic priorities and ESG indicators, aiming to stimulate and improve business efficiency and sustainable competitiveness to help achievement of long-term value creation and ESG goals.【For more detailed information on the sustainability strategy blueprint, please refer to《"Primax SDGs Sustainable Strategy Blueprint.”》】

Target and Performance of Material ESG issues 

Based on the identified material sustainability issues, we have listed our short-, medium-, and long-term goals for these issues, the achievement rates for 2023, and the corresponding action plans. Additionally, we provide an explanation of other performance results beyond the quantitative targets. The achievement status is represented by icons in the achievement rate column: 😃 Goal Achieved, 🙂 Goal Achieved Continuously, 😐 Goal Not Achieved. Furthermore, for these material sustainability issues, we have also assessed the impact on external stakeholders and disclosed the relevant performance outcomes.

Ethics and Integrity Management  【Material ESG Issue：Ethical Corporate Management】

 

Management of operational development 【Material ESG issues: Economic performance, product innovation and development】

 

Privacy and Cyber security management 【Material ESG Issue: Privacy and Cybersecurity】

 

Climate change adaptation 【Material ESG issue: Climate Change Response】

Sustainable Supply Chain Management 【Material ESG issue：Supply Chain Sustainability Management】

Human Right Management 【Material ESG Issues: Labor rights, diversity and equality】

Talent Management 【Material ESG Issue: Talent Recruitment and Retention, Talent Development and Cultivation, and Labor-Management Relationship】

Safe and healthy workplace management 【Material ESG Issue: Occupational Health and Safety】