PHISON Electronics Corp. - Corporate Sustainability Management Committee

To fulfill corporate social responsibility and achieve its mission as a sustainable corporation, Phison Electronics Corp. and its subsidiaries establish the Corporate Sustainable Development Committee in November 2020 to serve as one of the functional committees under the board of directors. This committee regularly reports to the board of directors on its operations once a year.
On January 21, 2022, the Committee reported the implementation results of the 2021 sustainability project and the work plan for 2022 to the Board of Directors.

The Corporate Sustainable Development Committee is the highest decision-making unit responsible for ESG affairs within the Company. It consists of three committee members, one of whom serves as the convener, and at least half of the committee members are independent directors. An executive team was established under the committee to help promote sustainable projects.
To achieve the purposes of sustainable development, the Committee has a fiduciary duty to the Board when fulfilling the following responsibilities:
1. Promote and strengthen the corporate governance and integrity.
2. Implement and develop matters related to corporate sustainability.
3. Supervise other matters related to corporate sustainability approved by the Board.

Member of Corporate Sustainable Development Committee

Position	Name	Major (Education) Past Positions
Independent Director	Wen Chiu Chung	Master of Accounting, Chung Yuan Christian University Accountant of Grand Thornton
Independent Director	Yu Lun Huang	Associate Vice President for Academic Affairs Director, Center for Teaching and Learning Development Director, Center for Continuing Education and Training Associate Professor, Department of Electrical and Computer Engineering Secretary-in-General, Taiwan Open Course and Education Consortium
Senior Assistant and Chief Operating Officer	Antonio Yu (Convener)	Master of Risk Management, National Chengchi University Legal supervisor, United Epitaxy Company Legal manager, Phison Electronics Corp. Spokesman, Phison Electronics Corp. Senior special assistant, Phison Electronics Corp. Chief Operating Officer, Phison Electronics Corp.

Committee Organization Chart

The term of the members of this committee is based on the principle of matching the term of the directors, and may be re-elected. The terms of this section of Corporate Sustainable Development Committee: November 5, 2021 to June 2, 2023.

In 2020, the Company listed 17 major topics in accordance with AA1000 (Stakeholder Engagements Standard). The Corporate Sustainable Development Committee selected 7 material topics after a materiality assessment, formulating related risk management policies and risk mitigation measures.

Dimension	Material topic	Risk management policy/Mitigation measures
Corporate Governance	Economic Performance	Continue to invest R&D resources to strengthen competitiveness. Provide high-quality products and services to deepen customer relationships.
	Regulatory Compliance	Actively identify updates to laws and regulations to ensure the Company's internal procedures and regulations are in line with current laws and regulations. Provide employees with legal compliance education training to raise their compliance awareness.
	Ethical Corporate Management	Regularly provide ethical management education and training to all employees to ensure they understand relevant corporate ethical standards.
	Supply Chain Management	Based on procurement value, we divided our suppliers into critical suppliers and general suppliers for differentiated management, thereby ensuring the efficiency of our invested management resources. Every year, we identify the environmental and social risks in our supply chain through RBA Self-Assessment Questionnaire (SAQ) and RBA audits, investigate whether the raw materials of our products are of conflict-free minerals, and offer corresponding improvement action plans based on the assessment results. With respect to the results of sustainability audits, we ask our suppliers scored under 80 to deliver respective improvement action plans within two weeks after receiving their results.
Environment Protection	Waste and Hazardous Substances Management	Compliance with the Control Standards of Hazardous Substances at all stages of production. Contract qualified waste disposal facilities to outsource waste disposal and treatment. Promote waste reduction and recycling inside the company to reduce waste generation at source.
Social Participation	Talent Attraction and Retention	Improve our employee benefits and respond to employee needs. Ensure the effectiveness of multiple communication channels. Create an inclusive, friendly and healthy work environment. Enhance employee identification with the company, thereby reducing turnover rates.
Social Participation	Talent Development and Training	The HR Department understands the gap between expected goals and actual performance through gap analysis, and plans the directions and main subjects of annual training programs according to the specialized requirements of the organization and individual departments. Through continuous training in employees' professional competencies, we create employees' value in the workplace and raise their individual competitiveness.

Chief Corporate Governance Officer

The Company passed a resolution of the board of directors on August 6, 2021, and appointed Antonio Yu, a senior special assistant and chief operating officer, as first chief corporate governance officer to protect shareholders' rights and strengthen the functions of the board of directors. Antonio Yu, a senior special assistant and chief operating officer, has more than three years of experience as a legal manager in a public offering company. The main responsibility of the chief corporate governance officer is to be responsible for corporate governance matters, including assisting matters related to the Board, Audit committee, Remuneration committee, and Shareholders’ meeting in accordance with the law, assisting directors in onboarding and training, assisting to provide directors with information required to perform their duties and assisting directors to comply with laws and regulations, etc.

Corporate Sustainable Development Committee:

PHISON Spokesman

Mr. Yu

Deputy Spokesman

Mr. Lu

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