Corporate Governance and Ethical Corporate Management

• Continued to promote listed subsidiaries to adopt ESG goals.
• Obtained ISO 27001 certification.
• Continued to promote suppliers to sign the "Supplier Code of Conduct."
• Continued to promote employees to sign the statement and commitment to the Employee Code of Conduct; new employees receive training on trade secrets when they report for duty with training completion reaching 100%.
• 0 major violations of the law.
• Experts or managers were arranged to teach courses on professional ethics, intellectual property rights, business philosophy, and internal and external regulations, and total participation amounted to 18,567 man-hours.

Sustainable Environment Development

• Established a pilot plant for co-production between steel and petrochemical plants, which is expected to reduce carbon emissions by 4,900 tonnes per year.
• Continued to use reclaimed water from Fengshan Creek and began using reclaimed water from Linhai Reclaimed Water Plant
• Continued to take air pollution reduction measures.
• The recycling ratio is over 90%, and zero solidification landfill.
• Promoted BOF slag applications.
• Improved the Company's climate-related financial disclosures.
• Continued to establish renewable energy sources in coordination with the government's green energy policy, and use renewable energy according to requirements on major electricity users.

Employee Care and Social Engagement

• Continued to organize employee care activities, arranged for professional counselors from the Teacher Chang Foundation to provide counseling sessions at its plants 3 times a week, helping a total of 358 people in 2022. To alleviate the anxiety or stress of employees diagnosed with COVID-19 or quarantined at home, distance counseling was provided on a trial basis in May, and information on “Combating the COVID-19 Mental Health Crisis among the Public” was published to help employees relieve psychological stress.
• Two psychological adaptation seminars on "family relationship" and "interpersonal communication in the workplace" were organized on a trial basis in September 2022, and participants totaled 77.
• To assist the development of neighboring communities and charity events, the Merit Scholarship Award Ceremony was organized in Xiaogang District, and we provided cash gifts during the three holidays and scholarships for low income households.
• We continue to engage in educational events on steel and environmental protection. Besides promoting the importance of ecological conservation and environmental sustainability, we also organized a journey of steel to promote education and talent cultivation in steel related fields.

Risk Management

• Periodically identified, assessed, and prioritized risks associated with the Company's operations, financial position, information security, environment, and compliance according to the risk management system, ensuring that material risks are effectively managed and proper response measures are taken. Risks classified as high risk in 2022 after evaluation include major occupational accidents, carbon control, air pollution fines, unstable energy supply, and construction manpower shortage. For the risk items identified and analyzed, personnel from the relevant departments is responsible for drawing up and implementing subsequent risk management strategies and plans.
• Lowered the impact of risks on company operations and stakeholders through periodic review of preventive and improvement measures.

Task Force on Energy Saving & Carbon Reduction and Carbon Neutrality

• Promoted carbon reduction in the group, provided training to tier 1 and above supervisors in the CSC Group, and organized training on carbon neutrality, GHG inventory, and product carbon footprint to improve competencies for carbon neutrality.
• Based on the 12 key strategies proposed by National Development Council in Taiwan's 2050 net-zero pathway, we verified that the contents of our business items are aligned with the direction of government policy.
• Implemented 221 carbon reduction action plans in 2022, which reduced carbon emissions by 626,476 tonnes CO₂e/year, exceeding the carbon reduction goal.
• Established carbon reduction management and evaluation mechanisms, and distributed carbon reduction goals for each department and unit for the overall carbon reduction of CSC.