Keep a pulse on Ennostar

ESG Corporate Sustainability and Risk Management Committee Report on ESG Implementation on 2026/08/06:

1. ESG work progress report

1. For 19 consecutive years, it has received certification for workplace health promotion from the Health Promotion Administration of the Ministry of Health and Welfare, continuously creating a healthy and friendly workplace environment.
2. Awarded the Bronze Award at the TSAA Taiwan Sustainability Action Awards. Based on the social impact assessment framework, the projects "LED Science Education" and " Talent Play Science" were calculated, with a social investment return (SROI) of 3.12 times, meaning that every 1 NTD invested can create 3.12 NTD in social value.
3. The ESG Committee achieved 93% of KPIs, while the Task Group achieved 94%.
4. ESG Plan for the Next 5 Years (2027-2031):

• Integrate major issues, clients, investors, government, and international trends of benchmark companies, focusing on key ESG issues as the core basis for ESG management policies.
• In July, management policy education courses were held to guide division-level supervisors in formulating representative management policies for Fucai that can be linked to departmental goals, achieving the benefits of two benefits at once.

5. Science Based Targets Initiative( SBTi)：

• Driven by four major strategies, using 2022 as the baseline, the Scope 1+2 performance in Q1 and Q2 of 2026 will reach 18.48%, surpassing the original target of 17.38%.
• Having completed the identification of major Scope 3 emission sources, the focus will be on key categories such as purchasing goods as key carbon reduction priorities.

6. Since March, a series of sustainability activities have been promoted, including food and exercise lectures, volunteer and eco-tourism, science education, knowledge management, and ESG awards, all to fully integrate ESG capabilities into daily life, with a total of 5,030 participants.

• Volunteer activities: Joined with friends and family to participate in beach cleanup volunteer actions, removing 629.3 kilograms of coastal debris and putting environmental education into practical action.
• Employee Ecological Journey: Through geological and ecological education on Keelung and Heping Island, enhance employees' understanding of ecological conservation issues and promote team communication and cohesion.
• Mainland China Plant Sustainability Annual Conference: Combined ESG Award, themed lectures, green markets, second-hand goods, and DIY activities, with a total of 2,314 participants. Through activities such as local small farmers, eco-friendly industries, diverse employment/female entrepreneurship, and secondhand goods recycling, ESG issues are integrated into employees' daily participation scenarios.
• Innovation Technology Forum: To promote carbon reduction for Scope 3 raw materials, suppliers are invited to share their low-carbon materials and technologies, with a total of 192 participants, facilitating the search for carbon reduction solutions from the source of raw materials and technologies.
• Supplier Conference: Focused on three main themes: net-zero transformation, supply chain collaboration for carbon reduction, and resilience and competitiveness enhancement, with 44 suppliers from Taiwan and Mainland China participating together.
• Ennostar ESG Award: Expanded to partners at the mainland plant, attracting 29 teams and 565 participants. The number of participating teams and participants was 3.6 times and about 2.7 times last year's numbers, respectively. The S1 plant recycled chip cartridges were made from plastic pellets to make trophies, with each trophy containing about 30% of the total weight.
• ESG Outstanding Contribution Award: Encourages colleagues who quietly engage in ESG practice in their positions. A total of 32 colleagues from the Taiwan and Mainland China sites received the award, covering 13 units.

7. All ESG goals linked to executive rewards have been met, and employee engagement surveys are expected to launch in Q4.

 

2. Information Security Committee Work Progress Report

1. Fitse continues to strengthen employees' cybersecurity awareness and crisis identification skills through group-wide social engineering drills. The latest drill results show that employee click-through rates have dropped below 0.1%, while the reporting rate has risen to 24.4%, demonstrating that cybersecurity awareness and a culture of response have become effective.
2. Fusai regularly commissions international third-party cybersecurity assessment agencies to conduct risk assessments, with the latest average result reaching 96 points, reflecting that the company's information security management maturity has reached an industry-leading standard.
3. The FunTech Information Security team continues to monitor international cybersecurity intelligence. In response to industry disclosures, internal equipment inspections and enhanced protection have been completed according to established response mechanisms, and the company has confirmed no external domain exposure concerns, continuously enhancing its cybersecurity protection and response capabilities.
4. Through outsourced professional cybersecurity monitoring services, FulTech monitors the operational status of core systems around the clock. No abnormal cybersecurity incidents were detected in the first half of 2026, continuously strengthening detection and protection mechanisms to address cybersecurity threats in the AI era and enhancing operational resilience.

 

3. Report on the progress of the Risk Management Committee's work

1. In Q2 2026, the risk knowledge base and assessment forms will be updated, and ERM-related items will be adjusted in line with IFRS S1 and S2 implementations; Additionally, the first half of the year has completed risk management education and training and major contingency event drill planning.
2. The risk knowledge base integrates IFRS S1 and S2 risk topics, adds and adjusts related risk items, and simultaneously refines the ERM knowledge base architecture.
3. Completed risk management education and training for the first half of the year, covering risk trends in the global economy, energy, finance, and AI development.
4. In June, completed a scenario drill for major incidents at the mainland plant, simulating scenarios such as fire, personnel injuries, and contractor disappearance, involving plant operations, equipment, environmental safety, human resources, and finance centers, and reported on financial losses and production recovery.
5. From Q3 to Q4 2026, annual risk assessments, action plan formulation, risk map creation, advanced risk calibration, and management reporting will be conducted. The company will also plan risk scenario drills at the Taiwan plant, participation in IFRS S1 and S2 project implementations, and production of training videos for all staff.

 

4. Schedule planning and progress reports for greenhouse gas inventory and verification

1. According to board resolutions, quarterly progress of greenhouse gas inventories and verification is reported to ensure transparency.
2. According to FSC regulations, all subsidiaries are expected to be audited by 2026 and all subsidiary verification procedures by 2028.
3. In 2026, greenhouse gas verification procedures have been completed for Fucai Optoelectronics, Fucai Optoelectronics-Zhunan, Jingcheng, Canyang, Jingpin, Jingyu, Daliang, Weitian, 18 Paper Company, and 6 office subsidiaries.

 

5. ESG reports must be approved by the Board of Directors according to the Taiwan Stock Exchange's revised regulations. The 2025 Fulbright Group's 2025 sustainability report has been prepared in accordance with the latest GRI Standards and verified by a third party, with the filing expected to be completed by the end of August.

 

6. Report on the amendments to the IFRS S1 and S2 implementation plans

1. According to the Financial Supervisory Commission's requirements, companies listed under International Financial Reporting Standards (IFRS) must disclose sustainability-related financial information in their annual reports in a dedicated chapter in accordance with IFRS S1 & S2 sustainability standards.
2. Considering the continuity and consistency of future data output, the methodologies for risk identification and materiality assessment were re-examined.

• Identifying sustainability-related risks and opportunities and their financial impacts, as well as assessing material sustainability-related financial information, was adjusted from Q2 2026 to Q4.
• The identification and collection of required data will be adjusted from Q3 2026 to Q1 2027.