To implement sustainable development and strengthen corporate governance effectiveness, HLC established the Sustainable Development Committee with the approval of the Board of Directors in June 2025 and formulated the “Sustainable Development Committee Charter” as the basis for its operations. This committee holds at least one meeting annually and is responsible for formulating the Company’s overall sustainability direction, overseeing execution plans, reviewing sustainability reports and information disclosure, and ensuring that the Company’s ESG goals are achieved and aligned with the core corporate strategy. The Sustainable Development Committee is convened by Chairman Liu, Yuan-Sen, with members including President Hsieh, Fu-Lai, Executive Vice President Tu, Te-Yi, Vice President Huang, Kuo-Hui, and Senior Assistant Vice President Chun Yuan Chiu. The Committee has five members in total, including one director, Chairman Liu, Yuan-Sen. Title Name Sustainability-Related Courses and Training in 2025 Chairman and Convener (Director) Yuan-Sen Liu Anti-Money Laundering Course: Latest Anti-Fraud Laws, Regulations, and Policies 2025 Cathay Sustainable Finance and Climate Change Summit Carbon Footprint <Mandatory for All Employees> Erren River Environmental Conservation Seminar <Mandatory for All Employees> Analysis of Practical Cases and Preventive Measures for Unlawful Infringement in the Workplace <Mandatory for Managers> Committee Member Fu-Lai Hsieh Carbon Footprint Verification <Mandatory for Managers> Carbon Footprint <Mandatory for All Employees> Erren River Environmental Conservation Seminar <Mandatory for All Employees> Analysis of Practical Cases and Preventive Measures for Unlawful Infringement in the Workplace <Mandatory for Managers> Committee Member Te-Yi Tu Committee Member Kuo-Hui Huang Committee Member Chun-Yuan Chiu
The committee has concurrent promotional units that practically advance relevant tasks through three functional teams and a team coordinator, including: Sustainable Environment Team (E)：Focuses on climate change response, resource efficiency improvement, and environmental legal compliance to promote environmental sustainability management. Social Welfare Team (S)：Strengthens human rights protection, community engagement, and social investment, to foster a corporate culture of social inclusion. Corporate Governance Team (G)：Covers legal and regulatory compliance, compensation policy, employee performance, education and training, and stakeholder communication, to promote governance transparency and responsible operations. Sustainability matters are promoted through an inter-departmental collaborative mechanism, with the Management Department serving as the overall coordinator for the teams. It coordinates and integrates internal resources from departments, such as the Inspection and Maintenance Operations Department, Customer Service Department, Operations Service Department, Planning Department, Information Technology Department, Finance Department, Occupational Safety and Health Office, and Audit Office. It is also responsible for compiling sustainability information and ensuring the completeness and transparency of information disclosure. The three teams engage with stakeholders based on their functions to keep abreast of external expectations and risk opportunities. The implementation status of the Company’s sustainability initiatives is reported to the Sustainable Development Committee at least once a year to ensure that these initiatives are closely aligned with the Company’s overall development strategy, thereby facilitating the achievement of its sustainability goals. The Sustainable Development Committee held one meeting in 2025, at which it reviewed the results of the Company’s sustainability initiatives for 2025 and formulated the implementation strategies for sustainable development in 2026. The results of the Committee’s deliberations are submitted to the Board of Directors.
Progress on Key Material Sustainability Topics ESG Key Material Sustainability Topic Description E Carbon Reduction and Operational Management Designated 2025 as the carbon reduction base year and set a target of reducing annual carbon emissions by 5% from the base-year level, with the goal of achieving a cumulative reduction of 25% by 2030. The Company’s greenhouse gas inventory showed total carbon emissions of 2,192.8 metric tons CO2e in 2025. Using this figure as the baseline, the Company has set an annual reduction target of 5% from the base-year level and a medium- to long-term target of achieving a cumulative reduction of 25% from the base-year level by 2030, while continuing to promote low-carbon operations and greenhouse gas management. Sustainable Supply Chain Management Established the “Supplier Code of Conduct and Corporate Social Responsibility Commitment” in October 2025. By the end of 2025, existing suppliers collectively accounting for 81% of procurement spending had signed the commitment, and all 11 newly engaged suppliers had also completed the signing process. Promoting a Sustainable Environment In 2025, the Company’s green procurement registered with the Ministry of Environment totaled NT$1.23 billion. The Company also introduced preferential leasing programs for battery electric and hybrid vehicles to help corporate customers lower the barriers to adopting low-carbon transportation and facilitate the low-carbon transition of their vehicle fleets. Hybrid vehicles are also being gradually introduced into the Company’s corporate fleet to support the development of green transportation. S Fulfilling Corporate Social Responsibility Invested NT$1.688 million in public welfare projects, achieving 157% of its public welfare budget target, which was set at 0.1% of the previous year’s net income after tax in 2025. G Strengthening Board Functions and Corporate Governance The Board of Directors has established three functional committees under its authority: the Remuneration Committee, Audit Committee, and Sustainable Development Committee. In September 2025, the Company established the Corporate Governance, Legal and Public Relations Office, which is dedicated to promoting corporate governance and ethical management. In December of the same year, the Board of Directors approved the appointment of a corporate governance officer. Enhancing Transparency in Information Disclosure The ESG section of the Company’s corporate website was launched in August 2025. The Company also published its first voluntarily prepared Sustainability Report and obtained an independent assurance statement in accordance with AA1000AS v3.