Policy and Organization

Sustainable development is deeply embedded in CTCI's corporate DNA. The Group established its Corporate Social Responsibility (CSR) Committee as early as 2008, setting forth CSR policies aimed at strengthening business operations, realizing its vision of green engineering, and fulfilling its role as a responsible corporate citizen. To further elevate sustainable governance, CTCI established the Sustainable Development Committee under the Board of Directors in 2020. Demonstrating its firm commitment to sustainability and net zero goals, the committee was renamed the ESG & Net Zero Committee in 2021. In recognition of the growing importance of information security, the committee was renamed once again in 2025 as the Sustainability and Information Security Committee. The committee members are all composed of members of the Board of Directors, with Chien-Chung Li as the convener, and Directors Yancey Hai and Michael Yang as committee members. They are responsible for the formulation of sustainability, net-zero emissions, and information security policies, the establishment of goals, strategies, and implementation plans, as well as the review, tracking, and revision of execution effectiveness, and they report regularly to the Board of Directors. All committee members in 2025 have received sustainability-related education and training. For detailed information, please refer to page 116 of the CTCI 2025 Annual Report.

The Committee convenes at least twice a year and may hold additional meetings as necessary. In 2025, meetings were held on May 13, August 14, and December 12, during which the Sustainability and Net Zero Office provided progress reports. Key agendas for 2025 included:

(1) the completion of the sustainability report, which has been verified by SGS;
(2) the identification of material topics and the establishment of long-term sustainability goals for 2035;
(3) the formulation of policies related to sustainability issues and associated targets, such as the completion of third-party verification for greenhouse gas inventories, reduction pathway reports, and assessments of climate and nature-related risks and opportunities (TCNFD);
(4) "IFRS Sustainability Disclosure Standards" Implementation Plan.
(5) the oversight of the implementation and evaluation of sustainable management practices, including communication with stakeholders, green engineering, and sustainable supply chain management.

Roles and Responsibilities of the Sustainability and Information Security Committee

CTCI has established the "ESG and Net Zero Committee" under the Sustainability and Information Security Committee. This committee is led by the Chief Sustainability Officer (CSO) at the group level, along with the dedicated Sustainability & Net Zero Office, with the Chairman serving as the overall supervisor for sustainability initiatives. The committee is responsible for promoting various sustainability matters. The Sustainability & Net Zero Office is responsible for the formulation of the Group's sustainability and net zero strategies, action planning, and implementation of affairs. It collaborates with members of the Sustainability Task Force to jointly promote efforts in environmental protection, social engagement, and corporate governance. The company has designated personnel to coordinate and promote ESG-related affairs, with the CSO primarily responsible for planning and executing sustainability strategies to ensure that environmental, social, and governance objectives are integrated into core business operations. This includes tracking emissions reduction performance, advancing the Company's green transformation, creating a happy workplace, and enhancing employees' sustainability literacy. Additionally, the CSO aims to strengthen communication with internal and external stakeholders, such as through monthly sustainability and net-zero meetings where results are reported to the Group Chairman and Chairman, in order to facilitate continuous improvement.

The Chairman and the CSO shall report to the Board of Directors at least twice a year on the overall development strategy and execution results of sustainable development. In 2025, seven Board meetings were held, five of which included ESG topics in the agenda, cumulatively reporting on ten key material sustainability issues. The Board of Directors, after hearing the report, will review the effectiveness of the execution progress and, if necessary, provide essential guidance and urge adjustments to ensure alignment with the company's sustainable development strategy.

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