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2020 CSR Report 002 Reporting Basis and Framework Date of Publication and Period Corporate Social Responsibility Report About the Report About the Report Walsin Lihwa Co., Ltd. (hereafter referred to as Walsin Lihwa or the Company) started to issue its annual corporate social responsibility (CSR) report in 2015 according to the core option of the Global Reporting Initiative (GRI) Standards to disclose non-financial information. The English version of the report has become available since 2017 to strengthen communication and Business Scope and Period of Disclosure transparency. Incorporation of the Sustainability Accounting Standards Board (SASB) standards and the Task Force on Climate related Financial Disclosures (TCFD) recommendations into the Reporting Basis and Framework 2020 report is intended to provide more complete and transparent information on the environmental, social, and governance (ESG) initiatives at Walsin Lihwa to stakeholders. Date of Publication and Period Contacts Business Scope and Period of Disclosure Message from Chairman The information disclosed herein started on January 1, 2020 and lasted through December 31, 2020. 2020 Performance Overview Walsin Lihwa's business scope covers wire and cable, stainless steel, as well as real estate. What is disclosed herein includes the Company's important business locations including: Progress Towards Sustainability United Sustainable Development Goals and Area Wire and Cable Business Stainless Steel Business Real Estate Business Other Taiwan Sustainable Development Goals Yangmei Plant Yenshui Plant Taiwan Taipei Head Office Support for the United Nations Global Compact Hsinchuang Plant Taichung Plant COVID-19 Response Dongguan Walsin Wire & Cable Ltd. (hereinafter Yantai Walsin Stainless Steel Co., Ltd. referred to as "Dongguan Walsin" ) (hereinafter referred to as "Yantai Walsin" ) Walsin (Nanjing) Development Co., Ltd. Contents (hereinafter referred to as "Nanjing Walsin (Real Jiangyin Walsin Steel Cable Co., Ltd. (hereinafter Changshu Walsin Specialty Steel Co., Ltd. Mainland Estate)" ) Walsin China Investment Co., Ltd. (hereinafter 1 Listening, Communication, and Engagement referred to as "Jiangyin Walsin (Steel Cable)" ) (hereinafter referred to as "Changshu Walsin" ) China Nanjing Walsin Property Management Co., referred to as "Walsin China Investment" ) 2 Ethical Governance and Management Shanghai Walsin Lihwa Power Wire & Cable Jiangyin Walsin Specialty Alloy Materials Co., Ltd. (hereinafter referred to as "Nanjing Walsin Co., Ltd. (hereinafter referred to as "Shanghai Ltd. (hereinafter referred to as "Jiangyin Walsin (Property Mgmt.)" ) 3 Teamwork and Innovation Walsin") (Specialty Alloy Materials )" ) 4 Employee Care and Empowerment Walsin Precision Technology Sdn. Bhd. Malaysia 5 Energy Saving and Low Carbon for (hereinafter referred to as " Walsin Precision" ) Environmental Protection 6 Deep Local Roots and Communion Note: Any difference in what is disclosed herein from the aforementioned business scope will be noted. Appendix Walsin Lihwa 2020 CSR Report 002 Reporting Basis and Framework Date of Publication and Period The Company releases its CSR report on an annual basis. The report's electronicle is About the Report Guidelines and Principles available for download on the Company's official website. Business Scope and Period of Disclosure The contents and framework of this report are structured according to the core option Date of first issue: Published in May 2015 Reporting Basis and Framework of the GRI Standards, the Rules Governing the Preparation and Filing of Corporate Social Previous issue: Published in May 2020 Date of Publication and Period Responsibility Reports by TWSE Listed Companies, the SASB standards for the electrical & Current issue: Published in May 2021 Contacts electronic equipment , iron & steel producers, and the TCFD recommendations. Previous reports: http://www.walsin.com/csr/eng/download.html Message from Chairman Source and Management of Data Contacts 2020 Performance Overview The data in this report provided by the head office and each operating units and compiled Please contact us if you have any questions or suggestions about this report. Progress Towards Sustainability by the CSR Report Team were reviewed by individual promotion centers under the Contact method: Sustainable Development Committee and then submitted to the President and Chairman Walsin Lihwa Corporation Corporate Communication Dept. United Sustainable Development Goals and Taiwan Sustainable Development Goals of the Board for approval prior to publication of this report. Financial information in the ADD: 25F, No.1, Songzhi Rd., Taipei 110411, Taiwan report was audited by certified public accountants; the environmental safety and health TEL: 02-8726-2211 ext.6398 Support for the United Nations Global Compact management systems are subject to periodic internal audits as well as annual external E-mail: [email protected] note audits, including ISO 14001 and ISO 45001 ; and the inventory greenhouse gas emissions Company website: www.walsin.com COVID-19 Response at the Yenshui plant and Taichung plant passed a third party audit in accordance with ISO Contents 14064-1. Note: The plants accredited to ISO 14001 and ISO 45001 are located in both Taiwan and Mainland China. 1 Listening, Communication, and Engagement 2 Ethical Governance and Management External Assurance 3 Teamwork and Innovation The Chinese version of this report was externally reviewed by Deloitte & Touche and a Limited Assurance Report was obtained, and meets the core option of the GRI Standards, 4 Employee Care and Empowerment standards of the Assurance of Non-historical Financial Information Audit or Review, SASB standards, and Taiwan Stock Exchange Corporation Rules Governing the Preparation and 5 Energy Saving and Low Carbon for Environmental Protection Filing of Corporate Social Responsibility Reports by TWSE Companies. 6 Deep Local Roots and Communion Appendix Walsin Lihwa 2020 CSR Report 003 Message from Chairman About the Report Dear Friends, Message from Chairman Walsin Lihwa values corporate social responsibilities (CSR), and its systematic and effective economic, environmental, and social 2020 Performance Overview initiatives help prudently engage in sustainability strategy development that exceeds legal requirements to keep strengthening competitiveness. To comply with relevant international standards and factors in the important information on climate change Progress Towards Sustainability impacts on finance, our annual CSR reports have been step by step adopting the Sustainability Accounting Standards Board (SASB) and Task Force on Climate-related Financial Disclosures (TCFD) frameworks to disclose financial information related to United Sustainable Development Goals and Taiwan Sustainable Development Goals environmental, social, and governance (ESG) risks for ongoing improvement in sustainability management. The impact of COVID-19 highlights the importance of corporate support for social communion. Therefore, we keep vigilant of Support for the United Nations Global Compact the health of our employees and suppliers by carrying out timely operation model adjustments and providing sufficient pandemic COVID-19 Response prevention materials to ensure resilient coordination between internal and external operations. As the COVID-19 pandemic has sweepingly changed how the economy works as well as the rules of market, we shall expedite the transformation of our company Contents and intelligentization of operation to cope with the rapidly changing world and neutralize crises and pressure. 1 Listening, Communication, and Engagement Effective Corporate Governance for Risk Management Implementation 2 Ethical Governance and Management The Board of Directors of Walsin Lihwa -- the highest governance body of sustainable business development at the company -- not 3 Teamwork and Innovation only features interdisciplinary professional backgrounds but also governs more independent director seats than legal requirements. Our independent directors reelected in 2020 will continue participation in the Sustainable Development Committee to help drive 4 Employee Care and Empowerment and lead sustainable business development, and our Corporate Governance Best Practice Principles, Corporate Social Responsibility 5 Energy Saving and Low Carbon for Practice Principles, and Principles for Ethical Management and Guidelines for Conduct are also amended on a regular or as-needed Environmental Protection basis to help perfect our ethical management framework and strengthen employee awareness in this regard. In 2020, it was the 4th time that Walsin Lihwa ranked among the top 5% in the Corporate Governance Assessment conducted by the Corporate 6 Deep Local Roots and Communion Governance Center of the Taiwan Stock Exchange. Such an honor celebrated our past endeavors again and will encourage us to Appendix keep up our good work. Facing the escalating climate change risks, Walsin Lihwa had its Risk Management Policy and Procedures enacted and promulgated in 2020 with the TCFD framework incorporated to help identify climate change opportunities and risks, develop company transformation and long-term business strategies, and cope with common global challenges. In 2020, we provided a variety of product mixes through product added value enhancement while working with business partners for joint R&D of product customization to increase industry applications. Supply chain sustainability management was also strengthened by appraisal of the risks associated with key suppliers with follow-up counseling to
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