Teco Electric and Machinery Co Ltd

###### 4.4 Policy Inference and Governance of Trade Associations

TECO actively participates in the activities of industry associations and non-profit organizations, and maintains close exchanges with industry, government, and academia. At the same time, we regularly make suggestions to the government on industrial upgrading, net-zero transformation, fiscal and taxation policies, human resources, and business environment to promote overall economic development.

TECO echoes the United Nations and international 2030/50 carbon reduction and net-zero goals, declaring a "50% reduction in emissions in ten years" and will achieve the 50% emissions reduction goal in 2030 and the net-zero goal in 2050. All TECO's climate initiatives are in line with the Paris Agreement, which aims to limit global temperature rise to 1.5⁰C compared with pre-industrial levels. The scope of this commitment applies to all TECO subsidiaries and business areas, as well as all operating sites.

Regarding the joining, withdrawal and participation in related activities of industry associations and non-profit organizations, the relevant departments will first review whether the organization's purpose and activity content are consistent with TECO's position and participate with the consent of the heads of each business department.

Climate-related initiatives need to be reviewed by the "ESG Office" and participated in with the consent of the CEO of the office. Their implementation will be monitored by the "Corporate Governance and Sustainability Committee" at the board level. The "ESG Office" regularly conducts reviews and evaluations of public associations in which the company participates.

The "Secretary Office of the Board of Directors" coordinates and manages the participation of public associations, regularly evaluates and reviews the public affairs or advocacy activities of industrial public associations and other groups in compliance with this policy, and regularly reports directly to the chairman of the board on the implementation of various policies to confirm that they are in compliance with this policy.

If it is inconsistent with TECO's policy stance, it will be asked to improve. If it does not revise its position within a certain period, TECO will withdraw from the group or activity, terminate its membership, withdraw financial support, and make a public statement to disclose relevant information.

###### 4.4 Policy Inference and Governance of Trade Associations

TECO actively participates in the activities of industry associations and non-profit organizations, and maintains close exchanges with industry, government, and academia. At the same time, we regularly make suggestions to the government on industrial upgrading, net-zero transformation, fiscal and taxation policies, human resources, and business environment to promote overall economic development.

TECO echoes the United Nations and international 2030/50 carbon reduction and net-zero goals, declaring a \"50% reduction in emissions in ten years\" and will achieve the 50% emissions reduction goal in 2030 and the net-zero goal in 2050. All TECO's climate initiatives are in line with the Paris Agreement, which aims to limit global temperature rise to 1.5⁰C compared with pre-industrial levels. The scope of this commitment applies to all TECO subsidiaries and business areas, as well as all operating sites.

Regarding the joining, withdrawal and participation in related activities of industry associations and non-profit organizations, the relevant departments will first review whether the organization's purpose and activity content are consistent with TECO's position and participate with the consent of the heads of each business department.

Climate-related initiatives need to be reviewed by the \"ESG Office\" and participated in with the consent of the CEO of the office. Their implementation will be monitored by the \"Corporate Governance and Sustainability Committee\" at the board level. The \"ESG Office\" regularly conducts reviews and evaluations of public associations in which the company participates.

The \"Secretary Office of the Board of Directors\" coordinates and manages the participation of public associations, regularly evaluates and reviews the public affairs or advocacy activities of industrial public associations and other groups in compliance with this policy, and regularly reports directly to the chairman of the board on the implementation of various policies to confirm that they are in compliance with this policy.

If it is inconsistent with TECO's policy stance, it will be asked to improve. If it does not revise its position within a certain period, TECO will withdraw from the group or activity, terminate its membership, withdraw financial support, and make a public statement to disclose relevant information.

TECO has established the "Corporate Governance and Sustainability Committee" to provide guidance on matters related to "corporate governance," "legal compliance and legal affairs," and "sustainability / climate change management." The Committee consists of three directors or more, and a majority of the members are independent directors. The members elect among and from them an independent director to serve as the convener and chairperson of the Committee meeting. Meetings are convened periodically on an annual basis. TECO has established the "ESG Office" to provide periodic reports on the execution and tracking of TECO's corporate social responsibility goal and policy implementation status to the Chairman directly monthly. To integrate TCFD culture into KPI evaluation and risk management processes, The task force consists of the administrative units of "Representatives of each business department/plant site" and "Safety and Health," "Human Resources," and "Financial Department" etc., and the task force is responsible for the promotion of routine affairs. The task force also summarizes TECO's related performance, prepares, and publishes an annual corporate social responsibility report. [...] ESG office CEO, equivalent to CSO, is responsible for the implementation of the company's climate change lobbying policies and practices, and report directly to the chairman on a monthly basis on the implementation of sustainable development goals and policies. Functional committee under board of directors (Corporate Governance and Sustainability Committee) is the highest decision-making committee. Regarding the participation in lobbying activities and the joining (withdrawing) of important industry associations, the relevant departments first check whether the purpose or activity content of the organization is consistent with the company's position and participate after the approval of the heads of each business department. Lobbying activities related to climate change need to be reviewed by the ESG Office and the implementation is supervised by the "Corporate Governance and Sustainability Committee." To ensure direct and indirect climate change lobbying in all regions is in line with 1.5⁰C targets, the annual monitoring and review procedures are as follows: � Through the investigation of membership and interested parties, confirm the important industry associations that should be included in the scope of review. � Review whether the associations are in line with the 1.5⁰C goal based on publicly disclosed information. � Confirm the assessment results with the regional business team. � Seek advice from third-party consultants. � Submit the annual review report to "Corporate Governance and Sustainability Committee" through ESG Office. � Share the evaluation result with reviewee. � Invite stakeholder feedback on the company's climate change lobbying policies, positions and activities. Definition of important industry associations are: � Membership fee is higher than NTD 10k. � TECO holds important position in the association. � Climate change related association. In the event of a disagreement, TECO shall publicly declare to the association with "violate of the Paris Agreement." If the association does not revise its climate change policy stance within one month, TECO shall withdraw from the association, terminate membership and withdraw financial support.

Does your organization have a public commitment or position statement to conduct your engagement activities in line with the goals of the Paris Agreement?[…]Yes