1. Formulation of ethical management policies and plans

(1) Has the Company formulated an ethical management policy approved by the Board of Directors and disclosed the policy and practice of ethical management in its regulations and public documents? Are the Board of Directors and the senior management committed to actively implementing the policy?

(2) Has the Company established an assessment mechanism for the risk of unethical conduct to regularly analyze and evaluate the business activities with a higher risk of unethical conduct within the business scope and formulated a prevention plan accordingly, at least covering the prevention measures for the acts under each subparagraph under Article 7, paragraph 2 of the Corporate Governance Best-practice Principles for TWSE/TPEx Listed Companies?

(3) Has the Company clearly specified operating procedures, guidelines for conduct, and a violation punishment and complaint system in the unethical conduct prevention plan and duly implemented them? Does the Company regularly review and revise said plan?

V

1. The Company operates in accordance with the various regulations of the Code of Integrity Management to implement integrity management.

2. The Company operates in accordance with the Code of Ethical Conduct, and the Whistleblowing and Grievance Management Measures were approved at the 7th Meeting of the 7th Board of Directors and revised at the 22nd Meeting of the 8th Board of Directors, providing an internal grievance mechanism and channel for employees and external stakeholders.

3. The Company operates in accordance with the Code of Ethical Conduct, and the Whistleblowing and Grievance Management Measures were approved at the 7th Meeting of the 7th Board of Directors and revised at the 22nd Meeting of the 8th Board of Directors, providing an internal grievance mechanism and channel for employees and external stakeholders, thereby preventing unethical business conduct.

No significant differences, will continue to cooperate with relevant laws and regulations for future deliberations.

2. Implementation of ethical management

(1) Does the Company evaluate each counterparty’s records for ethics? Has the Company specified the terms of ethical conduct in each contract signed with each counterparty?

(2) Has the Company established a dedicated (concurrent) unit under the Board of Directors to conduct ethical corporate management, regularly (at least once a year) report to the Board of Directors on its ethical management policies and prevention plans for unethical conduct, and supervise the implementation?

(3) Has the Company formulated policies to prevent conflicts of interest, provided appropriate methods for stating one’s conflicts of interest, and implemented them appropriately?

(4) Has the Company established an effective accounting system and an internal control system for the implementation of ethical management and assigned the internal audit unit to formulate relevant audit plans based on the assessment results of the risk of unethical conduct and audit the compliance with the unethical conduct prevention plan accordingly or commissioned a CPA to perform such audits?

(5)Does the Company regularly hold internal and external education and training on ethical management?

V

(1) The Company conducts internal evaluations on both suppliers and customers to ensure the integrity of the parties involved. If necessary, suppliers are required to sign an integrity commitment letter.

(2)  The Company has designated the Chairman’s Office as the dedicated unit for ethical management operations and code of conduct, and regularly reports the implementation status to the Board of Directors.

(3) The Company’s Grievance Management Measures were approved at the 7th Meeting of the 7th Board of Directors and revised at the 22nd Meeting of the 8th Board of Directors, providing an internal grievance mechanism and channel for employees and external stakeholders. The Company has also established a Code of Ethical Conduct, clearly defining how to prevent conflicts of interest and ensure that the Company’s business secrets are not leaked.

(4) The Company has established procedures for accounting professional judgments, processes for changes in accounting policies and estimates, and an internal control system. The internal audit unit audits them according to the annual audit plan and submits them to the Audit Committee for review.

(5) The Company regularly promotes information related to integrity management at the Company’s monthly meetings, and the chairman personally expounds the Company’s business philosophy.

No significant differences, will continue to cooperate with relevant laws and regulations for future deliberations.

3.Implementation of the Company’s whistleblowing system

(1) Has the Company formulated a specific whistleblowing and reward system, established a convenient whistleblowing method, and assigned appropriate personnel to handle the party accused?

(2) Has the Company formulated standard operating procedures for investigation of reported cases, the follow-up measures to be taken after the investigation is completed, and a confidentiality mechanism?

(3) Does the Company take measures to protect whistleblowers from being mistreated due to their whistleblowing behavior?

V

(1) The Company’s Grievance Management Measures were approved at the 7th Meeting of the 7th Board of Directors and revised at the 22nd Meeting of the 8th Board of Directors, and designated dedicated personnel to handle complaints, providing an appeal mechanism and channel for internal employees and external stakeholders.

(2) The Company has approved the Whistleblowing and Grievance Management Procedures at the 7th Meeting of 7th Board of Directors, and revised the procedures at the 22nd Meeting of the 8th Board of Directors, clarifying the operating procedures and relevant confidentiality mechanisms in the procedures.

(3) In accordance with the Whistleblower Protection Act, whistleblowers are protected from retaliation for making reports.

No significant differences, will continue to cooperate with relevant laws and regulations for future deliberations.

4. Strengthening information disclosure

(1) Does the Company disclose the content of its Corporate Governance Best-Practice Principles and the effectiveness of the implementation of the principles on its website and the MOPS?

V

(1) The Company has disclosed its Code of Ethical Conduct and the Whistleblowing and Complaints Management Regulations on its website. No whistleblowing cases were received during the period up to the Annual Report publication cut-off date.

No significant differences, will continue to cooperate with relevant laws and regulations for future deliberations.

5. If the Company has formulated its own Corporate Governance Best-Practice Principles as per the “Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies,” please specify the difference between its operation and the principles: No significant difference.

6. Other important information that facilitates the understanding of the Company’s ethical management: (e.g., reviewing and amending the Company’s corporate governance best-practice principles)

Please refer to the Corporate Governance section on the Company’s website: http://www.goodway.com.tw

1. Has the Company established a governance structure to promote sustainable development and set up a dedicated (concurrent) unit to promote sustainable development, governed by the senior management as authorized by the Board of Directors, which supervises the implementation?

V

(1).   The Company has established a sustainability practice code in accordance with the “Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies” and disclosed it on the Company’s website.

(2).   

    i. In 2023, the Company renamed its Corporate Social Responsibility Committee to the ESG Committee. Based on different job responsibilities and authority, seven functional teams were established, with members comprising senior executives of the Company, responsible for promoting and implementing the Company’s sustainable development strategies and goals, integrating them into daily operations, and reporting to the Board of Directors on the progress at least once a year.

   ii. In 2023, the Company designated the ESG Project Business Division to be responsible for formulating sustainability policies, setting sustainability goals, and working with various units to implement sustainability action plans, as well as regularly reporting to the Board of Directors.

 iii. The date of reporting to the Board of Directors for the current year: A report was made on November 4, 2023.

No significant differences, will continue to cooperate with relevant laws and regulations for future deliberations.

2. Does the Company conduct risk assessments on environmental, social, and corporate governance issues related to its operations based on the principle of materiality, and formulate relevant risk management policies or strategies?

V

(1).  With reference to GRI 3: The double-materiality concept published in 2021, Good Way defines double materiality as considering both impact materiality and financial materiality. The Company conducts risk assessments on environmental, social, and governance issues related to its operations and formulates relevant risk management policies or strategies.

(2).  Following the materiality assessment process, the Company identifies material sustainability issues through stakeholder engagement. The issues are then assessed and prioritized based on criteria. Relevant risk management policies and strategies are formulated accordingly. For specific implementation details, please refer to Good Way’s official website and sustainability reports.

No significant differences, will continue to cooperate with relevant laws and regulations for future deliberations.

3. Environmental Issues

(1). Has the Company established an appropriate environmental management system based on its industry characteristics?

(2). Is the Company committed to improving energy efficiency and adopting recycled materials with low environmental impact?

V

(1). The Company’s headquarters, Taipei Factory, and Kunshan Factory have both obtained ISO 14001 environmental management system certification and continue to ensure the validity of the certificates.

(2). The Company has referred to the Sustainability Accounting Standards Board (SASB) and the Financial Supervisory Commission’s industry classification to identify the environmental sustainability management indicators that our industry category should establish and publicly disclose.

(3). The Company’s factories located in Taiwan and mainland China comply with the relevant environmental protection regulations in their respective regions.

(1). The Company’s production bases comply with relevant local environmental regulations and strive to promote various energy-saving and consumption-reduction measures to improve energy efficiency and reduce costs.

(2). The Kunshan Factory has obtained the ISO 50001 energy management system certification in 2022, and the Taipei Factory plans to pass the ISO 50001 energy management system third-party verification in 2024 to establish a systematic energy efficiency management system.

(3). The GP management system have been implemented to ensure that all raw materials used in our products comply with the European Union’s RoHS, REACH, and halogen-free regulations.

(4). The Company continues to collaborate with international customers to disclose the safety information of chemicals used in manufacturing processes and establish a list of prohibited substances, completing the replacement with green chemicals. Simultaneously, Good Way increases the proportion of recycled/recyclable materials (PCR) used in strategic products to reduce the potential environmental impact throughout the product life cycle.

No significant differences, will continue to cooperate with relevant laws and regulations for future deliberations.

(3). Has the Company evaluated the potential risks and opportunities of climate change for the Company’s present and future operations, and taken relevant countermeasures?

(4). Has the Company calculated greenhouse gas emissions, water consumption, and the total weight of waste in the last two years, and established policies on energy conservation and carbon reduction, greenhouse gas reduction, water reduction, or waste management?

V

(1). Good Way incorporates its existing governance structure and follows the TCFD framework and relevant disclosures covered in the CDP’s climate change questionnaire to identify and assess the potential significant physical and transition risks, opportunities, and financial impacts of climate change on the Company. Based on this, Good Way formulates corresponding strategies and targets, and continuously tracks and manages them.

(2). Good Way’s headquarters, Taipei Factory, and Kunshan Factory have obtained ISO 14064-1 greenhouse gas inventory certification and have set specific short-, medium-, and long-term reduction targets. For detailed actions, please refer to Good Way’s official website and sustainability report.

To achieve the goal of environmental sustainability, the Company has continuously implemented measures such as carbon reduction, energy conservation, water resource management, and waste management to reduce the environmental impact of its operations. The disclosed data covers the Company’s main operating sites in 2022-2023.

Greenhouse Gas and Energy Management: In accordance with ISO 14064-1, the Company inventories the direct and energy indirect greenhouse gas emissions from its main operating sites. The greenhouse gas emission data for 2022 and 2023 (verified by a third party) are as follows:

To continuously promote emission reduction, the Company has identified that its greenhouse gas emissions mainly come from electricity consumption. Therefore, the Company has adopted energy conservation as its primary carbon reduction strategy and set targets for carbon reduction and energy conservation. With 2022 as the base year, the Company aims to reduce greenhouse gas emissions and energy consumption by 3% annually, and reduce water consumption and waste by 2% annually.

For detailed actions, please refer to Good Way’s official website and sustainability report.

4.   Social Issues

(1). Does the Company formulate relevant management policies and procedures in accordance with applicable laws and the International Bill of Human Rights?

V

(1). To fulfill corporate social responsibility and implement human rights protection, the Company refers to the International Bill of Human Rights and the International Labor Organization’s Declaration on Fundamental Principles and Rights at Work, and other internationally recognized human rights declarations to formulate this human rights policy. The purpose is to prevent any infringement or violation of human rights, and to ensure that the Company’s current employees receive reasonable and dignified treatment. The main implementation guidelines are as follows:

    i. Comply with relevant laws and regulations, and provide a safe and healthy workplace.

   ii. Strive to maintain a workplace free from violence, harassment, and intimidation, while respecting employees’ privacy and dignity.

 iii. No child labor under the age of 16 shall be employed, and any acts that may lead to the employment of child labor are prohibited.

  iv. Sign written labor contracts in accordance with the law, with the contracts stipulating that the employment relationship is established based on mutual consent, and prohibiting forced labor, opposing slavery and human trafficking.

   v. Eliminate illegal discrimination and ensure equal employment and promotion opportunities

  vi. Establish smooth communication channels, hold regular labor-management meetings to ensure the rights and interests of both parties.

No significant differences, will continue to cooperate with relevant laws and regulations for future deliberations.

(2). Has the Company formulated and implemented reasonable employee benefit measures (including remuneration, leave, and other benefits) and reflected business performance or achievements in employee remuneration appropriately?

V

The Company’s employee benefits measures and performance compensations follow the relevant regulations of the Labor Standards Act and internal management regulations.

(1). Employee benefit measures, employee training and education, retirement system and its implementation, etc.

Since its establishment, the Company has actively promoted harmonious labor-management relations based on the recognition of labor-management co-existence and co-prosperity. It also values employee benefits and health, assisting employees in personal work and life to grow together with the Company.

The following employee benefits are currently implemented by the Company:

A. Labor and health insurance

B. Clubs and health promotion activities

C. Educational training subsidies

D. Public welfare leave

E. Birthday leave

(2). Retirement system and its implementation status

The Company’s employee retirement system originally followed the regulations of the Labor Standards Act. After the Labor Pension Act was implemented on July 1, 2005, the defined contribution system was adopted.

After implementation, employees can choose to apply the retirement pension regulations under the “Labor Standards Act” or apply the retirement pension system under the Act and retain their years of service before the Act.

For employees subjected to the Act, the Company’s monthly contribution rate for employee retirement pensions shall not be less than 6% of the employee’s monthly salary.

(3).Operating performance or results are appropriately reflected in employee compensation:

In accordance with the Company’s performance management regulations, employee performance is evaluated twice a year, and the evaluation results are reflected in employees’ annual salary adjustments and year-end bonuses.

No significant differences, will continue to cooperate with relevant laws and regulations for future deliberations.

(3). Does the Company provide employees with a safe and healthy work environment and offer safety and health education to employees regularly?

(4). Has the Company established an effective career development training program for employees?

V

Upholding the core philosophy of “People-Oriented,” Good Way aims for “Zero Occupational Hazards” as the ultimate goal. While employees create industrial competitiveness, the Company strives to create an “inherently safe” working environment to become the strongest shield for safeguarding employees’ health and safety. To achieve this goal, the Company has established the following five occupational safety and health policies.

Good Way independently implements ISO 45001: 2018,

The Kunshan Factory in China obtained external verification for ISO 45001: 2018 in 2021 and

continues to maintain the effectiveness of the management system to reduce the risks of occupational safety and health management for the Company. Meanwhile, the Taipei Factory is expected to obtain ISO 45001 certification in 2024.

To cultivate a culture of workplace safety and health, the Company provides new employees with general occupational safety and health education and training courses during orientation to establish basic safety awareness. Additionally, regular on-the-job training courses are conducted for existing employees to promote safety and health protection and operational safety awareness.

In 2023, the Company achieved zero occupational hazards. For specific measures, please refer to Good Way’s Sustainability Report.

Good Way adheres to the training philosophy of “diverse learning enhances professional skills, promotes internalized growth learning for all employees, and transfers to improve performance and continuous improvement to meet development”. It designs a talent cultivation blueprint in line with the four spirits of “sincerity, integrity, trust, and practicality”, and integrates internal and external resources to subsidize employees’ external learning expenses, encouraging them to improve their skills in all aspects to enhance their competence and promote the mutual growth of employees and the Company.

In 2023, up to 90% of all employees received internal training, with a total of 10,650 training hours. The overall satisfaction with the education and training for the year was 4.66 out of 5.

No significant differences, will continue to cooperate with relevant laws and regulations for future deliberations.

(5). Does the Company comply with applicable laws and international standards regarding issues, such as customer health and safety, customer privacy, as well as marketing and labelling of products and services? Has it formulated relevant policies and complaint procedures to protect consumers’ or clients’ rights and interests?

(6). Does the Company comply with applicable laws and international standards regarding issues, such as customer health and safety, customer privacy, as well as marketing and labelling of products and services?

V

The Company prioritizes customer orientation, and all products are manufactured in accordance with relevant laws and regulations, providing customers with high-quality products and excellent services.

The Company requires relevant suppliers to not use conflict minerals and prohibits the use of related hazardous substances, in order to reduce the environmental impact of products and comply with relevant domestic and international laws such as RoHS (The Restriction of Hazardous Substances in Electrical and Electronic Equipment) and customer requirements. A dedicated unit handles customer complaints, executes and tracks them according to the complaint procedures, and has obtained ISO 9001 international certification.

According to the “Supplier Management Procedure”, for new suppliers of main products, the Company requires them to provide a commitment letter for the compliance of environmental hazardous substances with limit values, restricted substance testing reports (i.e., RoHS or other relevant testing reports such as Reach), material safety data sheets, supplier (subcontractor) social responsibility commitment letters, and other environmental compliance declarations. Before conducting business activities with suppliers, the Company will assess whether the trading partners have no past records of negatively impacting the environment and society, as a basis for procurement transactions.

No significant differences, will continue to cooperate with relevant laws and regulations for future deliberations.

5.   Has the Company referred to the internationally accepted reporting standards or guidelines to prepare reports, such as ESG reports that disclose the Company’s non-financial information? Have the aforementioned reports obtained assurance or assurance opinions from third-party verification bodies?

V

In addition to following the latest sustainability reporting standards (GRI: 2021) issued by the Global Reporting Initiative as the basis for information disclosure in the report, the preparation of the report also corresponds to standards such as the Task Force on Climate-related Financial Disclosures (TCFD) framework, the United Nations Sustainable Development Goals (SDGs), the Sustainability Accounting Standards Board (SASB), and the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies.

The Company’s sustainability report is self-published, with plans to complete third-party verification by July 2024.

The Company Website has set up a Goodway CSR section: http://www.goodway.com.tw, and in the future, it will strengthen the disclosure of report content and gradually obtain third-party certification.

6. If the Company has established corporate social responsibility principles based on the Corporate Social Responsibility Best Practice Principles for TWSE/TPEx Listed Companies, describe the implementation and any discrepancy:

No major difference.

7. Other important information that facilitates the understanding of the promotion of sustainable development:

Please refer to the Goodway CSR section on the Company Website: http://www.goodway.com.tw

1. Describe the Board of Directors’ and the management’s supervision and governance of climate-related risks and opportunities.

Based on the existing governance framework (refer to attachment P.4), Good Way’s Risk Management Committee follows the TCFD framework and relevant disclosure information in the CDP (Carbon Disclosure Project) climate change questionnaire. Additionally, they refer to the scenario assumption of global warming at 1.5°C to identify and confirm Good Way’s significant physical and transition risks, opportunities, and potential financial impacts under this climate scenario. Accordingly, they formulate corresponding strategies and goals, while continuously tracking and managing them.

2. Describe how the climate risks and opportunities identified impact the Company’s business, strategies, and finance (short-term, medium-term, and long-term).

In our industry, greenhouse gas emissions, energy efficiency, water resources, and waste management are major environmental issues. Good Way has established short, medium, and long-term environmental sustainability goals following the net-zero transition roadmap, which serves as Good Way’s management approach and targets for environmental sustainability.

We participate in the international Carbon Disclosure Project (CDP) to publicly disclose our environmental sustainability policies, goals, progress, and efforts to all stakeholders concerned about the Company. We also utilize the Good Way sustainability questionnaire to continuously review the compliance of our internal management and identify areas for improvement.

3. Describe the impact of extreme climate events and transition actions on finance.

Through the TCFD framework, the Company identifies climate change-related risks and opportunities, analyzes the potential impacts on its operations and finances, and seizes opportunities for transformation. Consequently, Good Way has formulated strategies to achieve carbon neutrality, implement energy management, strengthen green product design, and promote sustainable supply chain management.

4. Describe how the identification, evaluation, and management processes of climate risks are integrated in the overall risk management system.

1. Based on laws, market trends, technological developments, and physical climate change trends, identify significant climate risks and opportunities that may impact operations.

2. Good Way is a strategic supply partner for international brand customers. Therefore, based on the importance of strategic locations, we prioritize analyzing the physical risks at each production site while also assessing the impacts of typhoons and flooding at each site and corresponding response measures.

3. In 2022, Good Way’s Taiwan production base relocated to Xizhi Guoyang Silicon Valley, with the factory building obtaining the Green Building Silver Label certification. The design also takes into account the local climate and physical conditions as well as flooding potential in Xizhi District, New Taipei City to reduce the physical risks caused by extreme climate conditions.

4. As some of our products are exported to the European Union, to assess transition risks and future impacts, we will launch product carbon footprint learning and inventory initiatives in 2024. Simultaneously, we will research carbon credit trading prices and procedures to manage and mitigate transition risks from the design stage.

5. Starting from 2023, we will expand the scope and depth of greenhouse gas inventories. Based on the latest data, the Company will be establishing a management framework for physical risks.

6. The Company plans to identify climate-related risks and opportunities every two years, integrating this mechanism with the Company’s enterprise risk management mechanism. We will review the results annually to ensure their reasonableness and that the identified risks and opportunities align with current conditions.

5. If using scenario analysis to assess resilience in facing climate change risks, the scenarios, parameters, assumptions, analysis factors, and major financial impacts used should be explained.

Climate change risks and opportunities assessment not conducted using scenario analysis.

6. The contents of a transition plan in response to the management of climate-related risks shall be indicated if any, together with indicators and objectives used to identify and manage physical and transition risks.

Mitigation measures for transition risks include: introducing environmentally-friendly materials and low-pollution alternative materials at the design stage, increasing the usage of renewable energy, introducing energy management systems, promoting smart factories and improving energy efficiency to achieve the goal of carbon emission reduction.

7. The price setting basis shall be explained if internal carbon pricing is used as a planning tool.

Internal carbon pricing system not implemented.

8. Information including activities covered, scope of greenhouse gas emissions, planned scheduled, and required annual progress shall be described if climate-related goals are established; if carbon offsets or Renewable Energy Certificates (RECs) are used to achieve relevant goals, the sources and quantity of carbon quota offset or the quantity of RECs shall be described.

1. Indicators and targets for transition risks and opportunities:

1.1 In 2021, the Kunshan Factory initiated the inventory of Scope 1 and 2 greenhouse gas emissions and obtained third-party verification.

1.2 In 2023, Good Way will expand the greenhouse gas inventory scope to include the Taipei Factory and group headquarters and set annual self-reduction targets for key environmental impact indicators.

1.3 By 2024, Good Way will complete at least one major product carbon footprint inventory and obtain third-party product carbon neutrality certification.

1.4 Increase the proportion of renewable energy usage to over 40% by 2030. By 2030, the Company’s Scope 1 and 2 greenhouse gas emissions will be reduced by 30% compared to 2022 (baseline).

2. Adaptation to physical risks: To cope with extreme climate events, each factory has strengthened its alert system, implemented emergency response plans, and regularly reviewed the location of factories and equipment to reduce the risk of equipment damage or shutdowns caused by extreme climate events.

9. Greenhouse gas inventory and verification, as well as reduction goals, strategies, and specific action plans (also to be filled out in 1-1 and 1-2).

In accordance with Good Way’s net-zero transformation roadmap, we are committed to achieving carbon neutrality and achieving net-zero transformation by 2050. To realize this vision, we have set short, medium, and long-term emission reduction targets for the Group’s greenhouse gas emissions management, and through strict compliance with regular inventories, self-reductions, and continuous improvements, as well as concrete action steps, we hope to gradually move towards low-carbon operational transformation and achieve Net-Zero and environmental sustainability by implementing the PDCA management cycle.

For Good Way’s annual greenhouse gas management actions, progress, and emission reduction achievements, please refer to Good Way Group’s annual Sustainability Development Report.

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