The Ennostar Group began implementing sustainability and ESG actions in 2022. Our vision in business is to become the “best compound semiconductor investment platform” through our focus on four core concepts (Innovation, Integrity, Inclusiveness, and Sustainability) and extension of six major sustainable development aspects. Our parent company has established a dedicated sustainability department which continues to plan and execute Group sustainability transformations; coordinate short, medium, and long-term plans; and gradually achieve the two main missions of our sustainability strategic blueprint. We hope our proactive management of climate risks, strengthening of sustainable development, and incorporation of investor ESG expectations and needs can reduce environmental impacts while enhancing quality of life and enabling continued generation of profits. We utilize the advantages and resources of our subsidiaries to expand our social influence and create a virtuous cycle of sustainability.

 

Ennostar Group was established in 2021, and by the end of that year had established the Corporate Sustainability and Risk Management Committee under the Board of Directors. Composed of the Group's Chairman and independent directors, it is a functional committee of the Board. It meets quarterly to coordinate and plan the Group's ESG policies and sustainability target blueprint, identify ESG-related risks and opportunities to determine related investment strategies, and oversee the setting and achievement of ESG performance targets. Beginning in 2023, the governance framework was extended to overseas sites, with four subsidiaries in China each establishing and formally operating an ESG committee, developing management policies, and being incorporated into the Corporate Sustainability and Risk Management Committee framework. In 2025, in line with organizational restructuring, the ESG committees of Epistar and Lextar were further consolidated into the “ESG Working Group,” centralizing resources and unifying responsibilities to enhance decision-making and execution e iciency and implement the Group's sustainability goals.

Group's sustainability governance is organized into three levels. The Board of Directors is the highest level, responsible for deciding major ESG proposals and evaluating ESG performance. The second level is the Corporate Sustainability and Risk Management Committee, whose members are appointed by the Board and comprise the Chairman of ENNOSTAR Inc. and two independent directors. Its responsibilities include identifying ESG risks and opportunities, determining the Group's ESG strategic direction, and overseeing ESG performance. The third level is the ESG Committee, which integrates the original working group, the eight task forces, and subsidiary resources. The Group has also established eight ESG task forces: Innovative Technology, Sustainable Manufacturing, Sustainable Energy, Risk Governance, Social Impact, Stakeholder Engagement, Smart Enterprise, and Sustainable Value Chain. These task forces integrate resources across Group companies and connect collaborative value chains, with the aim of accelerating implementation of the Group's ESG strategic blueprint and expanding its social impact.

 

To accelerate horizontal integration among the Group's subsidiaries across sustainability topics, Ennostar Group formally established eight Group ESG task forces in the third quarter of 2022, and they began formal operations in 2023. The President and Chairman of ENNOSTAR Inc. serves as chair, while senior executives of major subsidiaries serve as team leaders and lead cross-company task forces in executing Group-wide projects. In-person meetings are held quarterly to report project progress. Through the task forces, the Group brings together its subsidiaries to advance toward the goals of low-carbon manufacturing, innovation and growth, sustainable governance, sustainable talent, shared social prosperity, and a sustainable supply chain. The teams map out a sustainability blueprint aligned with international net zero trends and ensure that ESG strategies are fully embedded in the Group's daily operations.