台新新光金控

• By adopting the steps and contents recommended in the GRI Standards, Taishin FHC used the list of 19 sustainability topics as the basis and appointed an external sustainability consultant to redefine the list based on the impact of the issues.
• This year, the aforementioned sustainability topics, definitions, and impact were re-examined and evaluated

Impact Materiality

• Relevant units of Taishin FHC evaluated the degree and likelihood of impact. Degree of impact was assessed by taking into consideration the value chain, significance, and management or remedial measures associated with the impact. Likelihood was assessed by considering the frequency of an impact based on past occurrences.
• This year, due diligence on each impact was conducted to re-examine the annual changes in the impact, and the results are used as the basis for correcting the materiality of the impact of each topics. The process of due diligence is described in the following paragraph on due diligence indicators.

Financial Materiality

• A financial materiality questionnaire was distributed to 14 top-level managers including the convener and team leader of the ESG Team.

• Weights were added to the following factors: three sustainability key topics of Taishin FHC, topics that have a negative impact on human rights, and the number of entities in the value chain.
• The topics of significant impact were prioritized based on the analysis results and corrected as recommended by the external sustainability consultant and managerial officers.
• This year, opinions and feedback from internal due diligence were included to re-examine the likelihood of a positive /negative impact.

• The analysis results were presented to the Board of Directors for final approval and confirmation of the material topics for this year's Sustainability Report.

We appointed external professional sustainability consultants to provide recommendations on how to define the economic, environmental, and social impacts of these issues.

When re-examining the likelihood of a sustainability topic, relevant units must refer to the due diligence results over the years and give due consideration to the opinions of the stakeholders. Likelihood based on the opinions of stakeholders is evaluated as follows:

• Employees: Refer to the number of reports concerning wrongful harm in the workplace, which are filed via employees' mailbox or employee grievance hotline; and consider the number of labor dispute cases and determine whether any of these cases involve labor-management miscommunication
• Customer: Refer to individual customer satisfaction and net promoter score (NPS) results and review customer experiences.
• Suppliers: Refer to situations that involve suppliers, such as supplier conferences, signed statement of commitment by suppliers, and supplier assessment status; understand the ESG management status of suppliers and determine whether suppliers are involved in ESG mismanagement.

The opinions of stakeholders are also considered, to an extent deemed appropriate, when calibrating the evaluation results of relevant issues.

• Investors: Adjust the materiality of the issues where appropriate based on day-to-day communication with institutional investors and the changes in their ESG ratings.
• Competent authorities: Weights were added to the following factors: three main sustainability strategies of Taishin FHC, issues that have a negative impact on human rights, and the number of entities in the value chain.

The opinions of stakeholders are also considered, to an extent deemed appropriate, when calibrating the evaluation results of relevant issues.

• Investors: Adjust the materiality of the issues where appropriate based on day-to-day communication with institutional investors and the changes in their ESG ratings.
• Competent authorities: Weights were added to the following factors: three main sustainability strategies of Taishin FHC, issues that have a negative impact on human rights, and the number of entities in the value chain.

The evaluation results are approved by the Board of Directors of Taishin FHC.