Walsin Lihwa's climate governance and management framework is subject to ultimate oversight by the Board of Directors, which guides management strategy, key action plans, and progress toward targets. The Board has established a Sustainable Development Committee, convened by an independent director, with the Chairman, independent directors, and internal advisors serving as members. The Committee is responsible for formulating the Company's sustainability strategy and vision, advancing sustainability-related work including climate issues, and formally reporting execution results to the Board at least once per year, ensuring Board oversight and decision-making on climate matters. At the operational level, the Sustainability Office is responsible for planning and directing the relevant business units in identifying and managing climate change risks and opportunities for Walsin Lihwa, and regularly reporting to the Sustainable Development Committee on international climate change trends, potential impacts, and the effectiveness of related response measures, ensuring the effective operation and continuous improvement of the climate governance mechanism.

Climate Governance Responsibilities:

To effectively manage climate change risks and opportunities, the Company's Sustainability Office coordinates the integration of climate-related risks into the Company's overall risk management framework, continuously tracking international climate policy and regulatory developments, the occurrence of extreme weather events, and incorporating estimates of potential financial impacts and related management costs. A rolling review management mechanism is employed to formulate corresponding response strategies, thereby enhancing operational resilience and risk tolerance.

Walsin Lihwa leverages a cross-departmental collaboration mechanism, whereby departments jointly conduct climate risk and opportunity assessments to comprehensively examine the potential impacts of climate issues on operations, supply chains, and asset allocation. Through training and internal communication, employees are briefed on global climate trends and the disclosure requirements of TCFD and IFRS S2, guiding each unit in identifying potential climate risks and opportunities within operational processes and evaluating their likelihood and magnitude of impact.

Following the TCFD framework and IFRS Sustainability Disclosure Standard S2, the Sustainability Office regularly convenes cross-departmental climate issue management meetings. For high-risk and high-impact issues identified, corresponding management decisions are made, and appropriate risk management strategies—including reduction, transfer, acceptance, or control—are adopted to ensure risks are effectively managed.

Following the TCFD framework, Walsin Lihwa identifies climate risks and opportunities based on the "likelihood of occurrence" and "magnitude of impact" of each risk or opportunity, has identified three high-risk factors and three high-opportunity factors, producing climate change risk and opportunity matrices.

Moreover, since 2024, Walsin Lihwa has advanced climate issue management in accordance with IFRS S2 requirements, referencing industry disclosure topics from the Sustainability Accounting Standards Board (SASB) standards, TCFD topics disclosed in sustainability reports, and IFRS S2 industry issues, to compile 68 potential risk and opportunity issues relevant to the Company. Each business unit then assessed these issues for likelihood and impact, initially identifying 23 relevant risk and opportunity issues. Combining quantitative and qualitative results, 8 key sustainability- and climate-related risks and opportunities were ultimately selected.

Among these, two climate risks were identified: "Energy Management" and "Extreme Weather Events"; and three climate opportunities: "Entering New Markets", "Supply Chain Management", and "High-Efficiency Production and Distribution Processes".