2019 Corporate Social Responsibility Report Contents

Message from the Chairman 002 About the Taiwan Stock Exchange 004

The Way to 1 Sustainability 006 1.1 Milestones of sustainable development 007 1.2 Analysis of material topics 008 1.3 Stakeholder engagement 013 1.4 Service satisfaction survey 015 Valuing 1.5 Response to international Employees 054 initiatives 016 4 4.1 Comprehensive employee care 057 Successful 4.2 Enhance talent Governance 018 development 062 2 4.3 Create a safe 2.1 Optimization of business workplace 064 performance 020 4.4 Friendly work 2.2 Improving governance environment 069 quality 021 2.3 Implementation of integrity governance 024 Embracing 2.4 Strictly abiding by laws Society 072 and regulations 027 5 5.1 Popularization of 2.5 Comprehensive risk financial knowledge 075 management 028 5.2 Spreading benevolence and The Right Approach care 082 3 to Finance 034 3.1 Refine the capital market 036 3.2 Ensure information About This Report 089 security 043 3.3 Develop diverse products 045 Appendix Appendix 1： 3.4 Innovative trading Environmental mechanisms 047 performance 090 3.5 Promote global Appendix 2： connectivity 049 Association memberships 3.6 Strengthen sustainable and roles 094 CSR 050 Appendix 3： GRI content index 097 Appendix 4： Summary of subject matters assured 102 Appendix 5： Independent limited assurance report 103 Message from the Chairman

Stimulate the Economy and Foster Growth

The Taiwan Stock Exchange ("TWSE") has been a hub of economic stimulation, business development and a provider of funds ever since it was established in 1961, almost 60 years ago. The TWSE supports businesses in pre- and post-listing, fund raising and operation expansion. Protecting investor rights is a key priority for the TWSE and our commitment to ensuring corporate information transparency, maintaining fair trading mechanisms, and diversifying financial products in the capital market is never-ending.

Corporate Social Responsibility ("CSR") is the cornerstone of capital market sustainability and the TWSE takes this responsibility very seriously in maintaining a sound capital market for the benefit of the country and its people. The first CSR report in June 2019 was an example of how our stakeholders can recognize our support for CSR through our actions. A CSR committee was established in 2020 to deepen corporate governance culture, heighten capital market coordination, augment employee care, manage social welfare contribution, and develop environmental considerations to reduce waste and make continuous operational improvements. The TWSE recognizes the value of the United Nations’ Sustainable Development Goals and the Sustainable Stock Exchange ("SSE") and is dedicated to a dynamic financial market in support of these core concepts.

In 2019, the Taiwan securities market reached a historic high. This was based on the market value of listed stocks and the result of combined stakeholder effort (investors, listed companies, intermediaries and more). To satisfy the need for product diversity and in response to the global trend of index investment, the TWSE launched the Exchange Traded Note ("ETN") to energize the securities market. As the TWSE fostered market growth, recognition came in receiving the regional grand prize of "Best ETF Stock Exchange" awarded by Asia Asset Management in their 2019 Best of the Best Awards.

2 Endeavors to enhance at all levels saw the TWSE work with the securities industry to implement anti- money laundering and counter-terrorism financing; additionally, cooperation with the regulatory authorities to complete the Asia/Pacific Group evaluation on Money Laundering resulting in Taiwan achieving the best possible review category. With an eye on the future, the TWSE will continue to advocate company listings and conduct promotional activities to attract capital into the domestic market. The goal is for more enterprises and investors to have distinct insight into the untapped potential in the Taiwan capital market -- "Root in Taiwan, Eye on the World."

Lead the Capital Market and Connect with the World

As a pioneer of sustainable governance for Taiwan business, the TWSE marches forward in an everlasting dedication to a solid governance structure and the capability of its board. In 2019, the TWSE acquired liability insurance for all its board members and supervisors to mitigate the risk of any major damage that the company and the shareholders might possibly face. The TWSE assertively participated in major global bodies and worldwide events, connecting with the pulse of the international financial community; additionally, experience-shared on corporate development trends enhanced its sustainable competitiveness and that of Taiwan corporations.

Continuous trading was launched in March and next is intraday odd lot trading this October. Furthermore, the TWSE has pushed for the capital market to adopt Inline XBRL for financial reporting and improved the quality of non-financial information disclosure. The TWSE not only requires that listed companies publish material information in both Chinese and English, but also requires CSR reports to be compiled to the GRI standard to expedite globalization of the Taiwan capital market. The TWSE has set the popularization of financial knowledge as the core of sustainability, in which financial information seminars are shared with the investing public so informed decisions can be made as to individual risk assessment and portfolio management.

Share Market Prosperity and the Creation of Sustainability

Looking to the future, despite the present uncertainty, the TWSE and all its staff have confidence in Taiwan's solid market foundation and quality listed companies. The TWSE goal is to expand the scale of the capital market, perfect all trading mechanisms, widen diverse product offerings, augment corporate governance and advance information infrastructure under the supervision of the competent authority. In the coming year, the TWSE will innovate the Taiwan capital market, strengthen its sustainable DNA and drive market momentum for a resilient investing environment.

Jan-yau Hsu Chairman

3 About the Taiwan Stock Exchange

As one of the important operators in the Asian securities market, the TWSE is strongly recognized for promoting ESG disclosure in Taiwan listed companies. Moreover, a stock exchange serves as a critical platform for fund-raising and investment in a capital market, and bears the responsibility for providing liquidity for businesses and creating investment opportunities for people.

The Taiwan Stock Exchange (hereinafter referred to as the "TWSE" or the "Company") opened for business on February 9, 1962 with its main responsibility of promoting the operation and development of the Taiwan securities market. The TWSE's major businesses cover listing, trading, clearing and surveillance. This includes: prelisting, postlisting governance and supervision, market maintenance, securities firms' services, investor protection, clearing and settlement operations, prevention of market defaults and illegal transaction audits, all of which provide comprehensive services for the securities market. The TWSE subsidiaries are Taiwan Depository & Clearing Corporation ("TDCC"), Taiwan Certificate Authority Corporation ("TWCA") and Taiwan Index Plus Corporation ("TIP").

The TWSE has dynamic appeal from institutional investors, given the fact that many TWSE- listed companies are financially sound, with high dividend yields and solid corporate governance. In addition, Taiwan's high-tech clustering is one of the strongest in the Asia Pacific region. The electronic and information technology industry contributes 56.8% of the total market value as of the end of 2019; this fact, and the many globally recognized technology giants that are headquartered in Taiwan, also add value to our market cap. For global connectivity, the TWSE has deep relationships with foreign institutions and 46 MOUs/ MOCs in effect. The TWSE has engaged in various approaches to expand the Taiwan capital market, to attract international funds and to promote Taiwan's standing and distinction.

Effective MOUs/MOCs executed by the TWSE

Europe 5 Asia 25

North America 12

Africa 2 South America 1 Oceania 1

4 In 2019, through the dedication of all market participants, the TWSE Capitalization Weighted Stock Index ("TAIEX") reached a historical high of 11,997 with the total market capitalization of TWSE-listed stocks reaching TWD36.4 trillion. In CSR performance, according to ACGA's "CG Watch 2018", Taiwan's ESG disclosure performance ranked among the highest performers. As of the end of 2019, in the ESG emerging market index of three major index companies, Taiwan had the highest weight in both the Dow Jones Sustainability Index for Emerging Markets ("DJSI EM") and FTSE4Good Index; in the MSCI EM ESG Leaders Index, Taiwan was weighted second. These achievements demonstrate the strength of the ESG performance in Taiwan's capital market, and it is these accomplishments, and more, that have been highly praised by professional research and investment consulting institutions.

TAIEX: Market capitalization of TWSE-listed stocks: 11,997 36.4 TWD trillion Note: as of the end of 2019

For further information about the TWSE and its subsidiaries, please visit the official TWSE website (https://www.twse.com.tw/en/) and the TWSE annual report (https://www.twse.com. tw/en/page/about/company/annuals.html).

5 1.1 Milestones of sustainable development 1.2 Analysis of material topics 1.3 Stakeholder engagement 1.4 Service satisfaction survey 1.5 Response to international initiatives

The Way to Sustainability

6 As a vehicle to promote and develop the operation of Taiwan's securities market, the TWSE insists on continuously promoting and implementing corporate social responsibility ("CSR") in business operations through all companies in the capital market. In 2010, the TWSE began to The Way to execute regulations on corporate governance and CSR disclosures. In being globally aligned Sustainability in the field of non-financial information disclosure, Taiwan's listed companies' performance has earned critical acclaim from professional research and investment consulting institutions. In 2020, TWSE's second CSR report is published to demonstrate its CSR commitment through its qualitative acts to show its transparency and external communication goals.

Successful 1.1 Governance Milestones of sustainable development

The Right In making corporate governance and CSR enhanced in the capital market, the TWSE has Approach to taken the initiative. Apart from setting an example to listed companies, we have spared no Finance effort in promoting the importance of CSR to enterprises. In addition, we have published related regulations and arranged relevant activities in collaboration with the Financial Supervisory Commission ("FSC") to build a capital market for the common good through fulfilling CSR.

Valuing Employee Overview of corporate social responsibility promotion in Taiwan's capital market

The TWSE announced the "Corporate Social Responsibility Best Practice 2008 The FSC began establishing CSR Principles for TWSE/GTSM Listed Companies". disclosure guidelines. The TWSE announced the "Ethical Corporate Management Best Practice Principles for 2010 Embracing TWSE/GTSM Listed Companies". Society The TWSE launched the TWSE RA Taiwan Employment Creation 99 Index. 2011 The TWSE organized the "Business Integrity and Corporate Social Responsibility for Listed Companies The FSC announced the "Corporate Governance Forum" for four consecutive years. Roadmap 2013". 2013 The TWSE established the Corporate Governance Center. 2014 The TWSE joined the WFE Sustainability Working Group. The TWSE made it mandatory for certain The TWSE launched the Taiwan High TWSE-listed companies to prepare and publish Compensation 100 Index. a CSR report. 2015 The TWSE launched the TWSE Corporate Governance 100 Index. 2016 The TWSE announced the "Stewardship Principles for Institutional Investors".

The TWSE launched the FTSE4Good TIP 2017 Taiwan ESG Index.

The TWSE amended the "Rules 2018 The FSC announced the "New Corporate Governing the Preparation and Governance Roadmap". Filing of Corporate Social Responsibility Reports by TWSE-Listed Companies" 2019 aligning with the GRI Standards.

7 To optimize its own CSR management, in January 2020, the TWSE established the "Directions for Establishment of the Corporate Social Responsibility Committee" to set up a CSR committee as the top administrative organization for sustainable management. With the TWSE president as the committee leader, the CSR committee is formed with TWSE SEVPs and department heads. Under the committee, there are five working groups including Governance, Capital Market, People, Society and Environment.

Committee Leader

Executive Committee Secretary Members

Governance Capital Market People Society Environment

Corporate Customer privacy Professional talent Philanthropy Energy governance and information cultivation Enhance Greenhouse Integrity security Employment and financial gas emissions governance and Service satisfaction employee benefits knowledge information disclosure Trading mechanisms Occupational safety Risk management and financial and health and internal control instruments Diversity and equal Regulatory compliance A fair, transparent, opportunity Business performance and orderly market Fair labor practices Supplier management and human rights

1.2 Analysis of material topics

In addition to developing and implementing CSR over time and focusing on material topics that can create value through operations, the TWSE maintains constant stakeholder engagement to identify topics that concern stakeholders. These items are taken under advisement by TWSE top management as to how they impact TWSE operations, with the objective of feedback creating an enhanced system to which all stakeholders (investors, the regulatory authorities, listed companies, and employees) have contributed. This is done through the use of questionnaires that analyze material topics, to which various principles have been applied and four processes recognized. Furthermore, the TWSE conducted a separate survey in which stakeholders were asked to define material topics that concerned them. These were then taken into consideration when planning its sustainable strategies and as a reference for writing this CSR report.

8 Top 10 Stakeholder Groups

The Way to Sustainability

Investors Media Suppliers Employees NPOs

Listed Regulatory Customers Intermediaries Shareholders Companies Authorities Successful Governance

Four processes recognized and associated principles

Principle Apply the Principles of Sustainability Context and The Right Approach to Stakeholder Inclusiveness Finance Identification Top 10 stakeholder groups: Ten major stakeholder groups were identified 1 in terms of the level of influence. 18 sustainable topics: 18 related topics were assessed and selected with respect to the UN SDGs, ISO 26000 Guidance on social responsibility, GRI Standards, Sustainability Accounting Standards Board ("SASB"), and topics that concern domestic and international stock exchanges. Valuing Employee

Principle Apply the Principles of Materiality and Stakeholder Inclusiveness 211 questionnaires for concern survey: A questionnaire survey was Prioritization 2 conducted on the top 10 stakeholder groups to measure their Embracing concern about the 18 sustainable topics. Society Assess the significance of topics: The management and topic responsible units assessed the impact of the 18 topics to confirm the material topics.

Principle Apply the Principles of Completeness and Stakeholder Inclusiveness Validate the 12 material topics: Report to the management for Validation 3 confirmation and for each department to assess their completeness, scope of influence, and boundaries to confirm the important information required for disclosure in detail in the report.

Principle Apply the Principles of Sustainability Context and Stakeholder Inclusiveness Enhance communication with stakeholders: The TWSE will continue Review 4 to review the report and adjust the approaches in a timely manner for sustainable management to review the reasonability (fairness) of the matrix of material topics in the next year.

9 Matrix of material topics identified in 2019 High Risk management, Trading internal control mechanisms and internal audit and financial

Influence on stakeholder assessments & decisions Business performance instruments A fair, transparent, Service and orderly market satisfaction Customer privacy Regulatory and information compliance security Corporate Integrity governance governance and information Philanthropy / disclosure Enhance financial knowledge Occupational Employment and safety and health employee Fair labor practices benefits and human rights Professional Diversity and equal talent cultivation Supplier opportunity management Energy Greenhouse gas emissions

Low Significance of economic, environmental, & social impacts High

The TWSE's 2019 12 material topics

Material Response Significance to the TWSE Boundaries GRI disclosures topic chapter

Through the satisfaction survey, feedback, or recommendation, the GRI 102: General 1.4 Service Service TWSE exactly captured Disclosures（102- satisfaction satisfaction the needs and opinions 43） survey of stakeholders for the reference of service and quality optimization.

To create a fair, efficient, and safe transaction environment and a robust 2.1 Business investment market to GRI 201: Economic Optimization performance enhance the economic performance of business value of the nation and performance society, is the mission of the TWSE.

A well-established mechanism for corporate GRI 102: General governance and Disclosures（102- 2.2 Improving Corporate demonstration of the 13、18） governance governance board functions can GRI 405: Diversity quality enhance the stability and and Equal transparency of business Opportunity operations.

10 Material Response Significance to the TWSE Boundaries GRI disclosures topic chapter The Way to As the platform for Sustainability matching financial transactions, the TWSE is committed Integrity GRI 102: General to promoting ethical 2.3 governance Disclosures（102- conduct, transaction Implementation and 16） order upon impartiality of integrity information GRI 205: Anti- and integrity, enforcing governance Successful disclosure corruption Governance relevant specifications and principles and the requirements for information disclosure.

To maintain the rights GRI 307: The Right and interests of all Environmental Approach to stakeholder groups, compliance 2.4 Strictly Finance Regulatory the TWSE maintains full GRI 419: abiding by compliance legal compliance from Socioeconomic laws and corporate governance compliance regulations to the construction of GRI 417: Marketing transaction platforms. and labeling

Sound and Valuing Employee well-developed countermeasures and control mechanisms are Risk developed to prevent management, 2.5 risk occurrence or reduce GRI 102 : General internal Comprehensive loss. Internal control or Disclosures（102- control and risk audit mechanisms are in 11） Embracing internal management place to implement self- Society audit imposed monitoring and thereby ensure the steady operation of the transaction platforms.

By implementing various measures including supervision, audit, and A fair, information control, the transparent, GRI 101: 3.1 Refine the TWSE aims to build a fair and orderly Foundation capital market and transparent market market environment together with participants of the capital market.

Through the IT system and management, the Customer TWSE protects the 3.2 Ensure privacy and information privacy and GRI 418: Customer information information security of customers privacy security security and stakeholder groups in the information-based transaction platforms.

11 Material Response Significance to the TWSE Boundaries GRI disclosures topic chapter

The TWSE is committed to developing effective and efficient transaction methods, diversifying 3.3 Develop financial products Trading diverse to include the social mechanisms GRI 101: products and environmental and financial Foundation 3.4 Innovative aspects, promoting such instruments trading products to synchronize mechanisms enterprise investments and growth with social and environmental development.

Through channels for full communication and a system of comprehensive and friendly benefits, 4.1 Employment the TWSE develops GRI 401: Comprehensive and employee harmonious labor- Employment employee benefits management relations care and creates a worry-free workplace and environment.

By offering learning and training resources, the TWSE improves Professional the professional 4.2 Enhance GRI 404: Training talent skills of employees in talent and education cultivation various professional development competencies to enrich the organization's developmental energy.

Through its expertise and competence, the 5.1 TWSE integrates more Popularization Philanthropy / social resources to extend of financial Enhance GRI 203: Indirect philanthropy and promote knowledge financial economic impact the education of financial 5.2 Spreading knowledge knowledge for the public benevolence to understand more about and care the financial market.

TWSE and its subsidiaries employees Note: Within the organization: ； investors suppliers customers intermediaries Outside the organization:

12

1.3 The Way to Sustainability Stakeholder engagement

Proactive communication with stakeholder groups is TWSE's notable approach to develop and promote CSR over time. Apart from communicating with stakeholder groups through comprehensive channels, the TWSE has identified stakeholder groups and material topics alongside materiality analysis. By designing different engagement modes and communication Successful Governance frequencies with respect to the characteristics of individual stakeholder groups, the TWSE enables timely corrections and adjustments on the road to promoting the sustainable development of Taiwan's capital market, responding to social expectations, and demonstrating social influence.

The Right Approach to What do Stakeholder Finance stakeholders mean to Engagement channels / frequency group the TWSE

Suggestion Box on the TWSE website Note (immediately) Investor service hotline (immediately) Valuing Annual report (annually) Employee Investor seminars (monthly) Individual and Service satisfaction surveys (intermittently) institutional investors Institutional investor business conferences can supervise listed (quarterly) companies and act as Institutional investor conferences (quarterly) an important promoter Investors The TWSE Business Forum with senior of market information Embracing executives of securities brokerages and Society transparency. securities dealers (annually) The seminar with responsible persons of securities firms (annually) Domestic and overseas roadshows (intermittently)

The media can help quickly spread Press conferences after board meetings important information (monthly) and also serve as a vital Press releases (immediately) Media communication platform Seminars (immediately) for the popularization of Spokesperson mechanism (immediately) financial knowledge.

Suppliers are long-term TWSE partners that jointly aim to achieve Price negotiation and comparison meetings corporate sustainability (intermittently) Suppliers and create a culture of integrity governance.

Note: The Suggestion Box on the TWSE website is available to all stakeholders and is currently mainly used by investors.

13 What do Stakeholder stakeholders mean to Engagement channels / frequency group the TWSE

Labor-management meetings (monthly) Collective bargaining (monthly) Birthday parties (quarterly) Employees are the Sports meet (annually) most important asset Staff Welfare Committee (quarterly) and key to TWSE core Employee safety and health meetings (quarterly) Employees competitiveness. Employee Review Committee (annually) Employees' Activities Committee (annually) Labor Pension Committee (quarterly)

Associations, universities, and foundations are TWSE partners in promoting capital market related Correspondence (intermittently) topics, while charities Phone calls and e-mails (intermittently) NPOs are partners that identify Visits (monthly) social problems and jointly realize a caring society that benefits everyone.

Customers are TWSE Visits (monthly) partners that provide Service satisfaction surveys (intermittently) economic benefits, Phone calls and e-mails (intermittently) recognize the TWSE for Meetings and publicity events (annually) Customers its services, and grow Business conferences and seminars (intermittently) together with the TWSE.

Listed companies are Correspondence (intermittently) indispensable TWSE Phone calls, fax, and e-mails (intermittently) partners for achieving Meetings and publicity events (monthly) sustainable governance, Listed company business conferences (monthly) Listed co-existence, and Service satisfaction surveys (intermittently) companies co-prosperity.

Intermediaries drive Correspondence (weekly) securities circulation Phone calls and e-mails (immediately) and allow economic Meeting and publicity events (monthly) Intermediaries development to thrive. The long-term support Annual general meeting of shareholders of shareholders is the (annually) energy of the TWSE's Financial statements (biannually) Shareholders steady growth. Correspondence (weekly) Strict compliance with Phone calls and e-mails (daily) financial regulations Meetings and publicity events (monthly) is the foundation for Appearance at legislature meetings as a guest building a robust capital Regulatory for answering to interpolation (intermittently) market. Authorities Report statistics (daily)

14 1.4 The Way to Service satisfaction survey Sustainability

In response to the constantly changing global macro environment, the TWSE is always fine-tuning and has introduced innovative trading mechanisms and products to fulfill market demand, with a goal to see economic development flourish and enhance efficiency. In addition, to assess TWSE customer service satisfaction from various parts of society, and use Successful this customer feedback as the basis for future quality improvements, the TWSE commissioned Governance the Securities and Futures Institute ("SFI") to conduct the "TWSE Service Satisfaction Survey 2020" between January and August in 2020 to measure five different groups: listed companies, securities firms, institutional investors, individual investors, and IT companies to measure their satisfaction with our services in 2019. The Right Approach to Finance

institutional investors securities firms

Survey groups individual investors Valuing Employee listed companies

IT companies

Embracing Based on the results of the 2018 service satisfaction survey, although the number of Society questionnaire items was different from that of 2016, progress is seen in the overall 2018 satisfaction from 2016, with significant rises in items including: "Information reporting operations," "General business (paperless applications and reporting)," "Business promotion presentations," and "Presentations for domestic legal persons/Intention to participate in financial business presentations again" for TWSE-listed companies; and the "TWSE website," "Market Observation Post System," "Basic Market Condition Reporting," "Personal Information Inquiry System," "Investor Education," "Margin Trading," and "ETF products" for individual investors.

In addition to survey suggestions, TWSE customers can give valuable feedback on its services through different engagement channels to provide a substantial basis for continual improvement.

15 1.5 Response to international initiatives

The United Nations (the "UN") established the Sustainable Stock Exchanges SDGs Target ("SSE") in 2009 as a platform for member exchanges to share CSR promotion. 12.6 Encourage companies, especially large and transnational companies, to adopt The SSE is committed to investigating how stock exchanges enhance the sustainable practices and to integrate sustainability information into their reporting cycle. information transparency of environmental, social, and governance issues in The TWSE Target collaboration with investors, supervisory institutions, listed companies and the Provide Environmental, Social, and Governance ("ESG") Reporting guidelines and training. final performance. Apart from improving responsible investment that benefits Develop sustainability indicators and encourage listed companies to disclose their investors, the SSE and members seek to co-develop a more sustainable capital Responsible ESG performance. market. To synergize Taiwan’s stock exchange, the TWSE upholds the SSE’s Consumption Update the criteria for listing and provide a consistent basis for disclosing "Mobilizing Finance" spirit to innovate financial mechanisms and allow the and Production sustainability information. financial market to thrive through the CSR reporting mechanism. SDG Actions In addition, the UN has set 17 Sustainable Development Goals ("SDGs") in 2015 Promoted the substitution of the "GRI G4 Guidelines" with the "GRI Standards" in to resolve major social problems in collaboration with worldwide enterprises. CSR reporting in 2019. By proactively connecting our sustainable development strategies with the Added the disclosure requirement in the CSR report of the average and median world, the TWSE responds to the SDGs with its own advantages and contributions. salary data of non-managerial full-time employees in 2019. On top of supporting and responding to the 17 SDGs, the TWSE integrates the Added the disclosure requirement in the CSR report of the risks and opportunities SSE initiative with its core competence to demonstrate its influences through from climate change in 2019. the following five SDGs. Constantly increasing the scoring items in the Corporate Governance Evaluation. Response chapter SDGs Target 3.1 Refine the capital market 3.6 Strengthen sustainable CSR 5.5 Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic and public life. SDGs Target The TWSE Target 13.3 Improve education, awareness-raising, human and institutional capacity on To increase the ratio of female directors and managers in listed companies, gender climate change mitigation, adaptation, impact reduction and early warning. equality and women empowerment are promoted in the companies' guidelines, Gender training, and activities. The TWSE Target Develop and promote financial instruments to drive green industry growth. Equality SDG Actions Provide corporations and investors with guidance and training for disclosing climate Corporate Governance Evaluation indicators include whether or not there are Climate change information. female board members in the company. Support national and international policies to gain the benefits of low carbon The Corporate Governance Center's e-newsletter provides the latest international Action investments and reduce risks. news on increasing the ratio of female directors. Currently, the TWSE has two female directors, commanding 14.3% of all board seats. SDG Actions Response chapter Constantly increasing the scoring items in the Corporate Governance Evaluation. 2.2 Improving governance quality Constantly encouraging the signing of the Stewardship Principles. Holding forums on climate change and ESG investments. Promoting listed companies to participate in Office Document Exchange Center SDGs Target established by the regulatory authority. 8.3 Promote development-oriented policies that support productive activities, Response chapter decent job creation, entrepreneurship, creativity and innovation, and encourage the 3.6 Strengthen sustainable CSR Appendix 1：Environmental performance formalization and growth of micro-, small- and medium-sized enterprises, including through access to financial services. SDGs Target The TWSE Target 17.16 Enhance the global partnership for sustainable development, complemented Decent Work Guiding overseas Taiwanese businesses to list on the TWSE. by multi-stakeholder partnerships that mobilize and share knowledge, expertise, and Economic Providing flexible listing requirements. technology and financial resources, to support the achievement of the sustainable Growth SDG Actions development goals in all countries, in particular developing countries. Recruiting investors from ASEAN in support of the government’s "New Southbound The TWSE Target Policy" to provide Taiwanese businesses with related financial services, assisting Join the SSE initiative to enhance multilateral partnerships. them to expand deployment in the ASEAN market, and guiding them to list on the Partnerships Serve as a communication channel between listed companies and investors. TWSE. for the Goals Work together with other stock exchanges, participate in discussions, and provide Supporting the development of large-scale industrial innovation to promote substantial assistance and support. large-scale companies, though not yet profitable, to list on the TWSE via providing SDG Actions flexible listing requirements. Participated in 61 associations as of December 31, 2019. Introducing "cornerstone investors" with intensified related information disclosure Signed 46 MOUs/MOCs as of December 31, 2019. to facilitate the globalization of Taiwan’s capital market. Response chapter Response chapter 3.1 Refine the capital market 3.5 Promote global connectivity 2.2 Improving governance quality 3.5 Promote global connectivity

16 SDGs Target The Way to The United Nations (the "UN") established the Sustainable Stock Exchanges Sustainability ("SSE") in 2009 as a platform for member exchanges to share CSR promotion. 12.6 Encourage companies, especially large and transnational companies, to adopt The SSE is committed to investigating how stock exchanges enhance the sustainable practices and to integrate sustainability information into their reporting cycle. information transparency of environmental, social, and governance issues in The TWSE Target collaboration with investors, supervisory institutions, listed companies and the Provide Environmental, Social, and Governance ("ESG") Reporting guidelines and training. final performance. Apart from improving responsible investment that benefits Develop sustainability indicators and encourage listed companies to disclose their investors, the SSE and members seek to co-develop a more sustainable capital Responsible ESG performance. market. To synergize Taiwan’s stock exchange, the TWSE upholds the SSE’s Consumption Update the criteria for listing and provide a consistent basis for disclosing Successful Governance "Mobilizing Finance" spirit to innovate financial mechanisms and allow the and Production sustainability information. financial market to thrive through the CSR reporting mechanism. SDG Actions In addition, the UN has set 17 Sustainable Development Goals ("SDGs") in 2015 Promoted the substitution of the "GRI G4 Guidelines" with the "GRI Standards" in to resolve major social problems in collaboration with worldwide enterprises. CSR reporting in 2019. By proactively connecting our sustainable development strategies with the Added the disclosure requirement in the CSR report of the average and median world, the TWSE responds to the SDGs with its own advantages and contributions. salary data of non-managerial full-time employees in 2019. The Right Added the disclosure requirement in the CSR report of the risks and opportunities Approach to On top of supporting and responding to the 17 SDGs, the TWSE integrates the Finance SSE initiative with its core competence to demonstrate its influences through from climate change in 2019. the following five SDGs. Constantly increasing the scoring items in the Corporate Governance Evaluation. Response chapter SDGs Target 3.1 Refine