Stakeholder Engagement｜Management Approach

Management Approach

Nuvoton Taiwan and Nuvoton Japan each have five task forces dedicated to addressing major issues and implementing action plans. These task forces establish short-, mid-, and long-term objectives for managing their respective significant issues and are responsible for drafting annual action plans. Supervised by the Sustainability Development Committee, their progress is tracked quarterly. The committee chair regularly reports progress to the Board of Directors.

Aspect	Material Topics ¹	Scope	Management Approach
Economic and Governance	Innovation in research and development	Nuvoton Taiwan	The number of products using advanced processes in 2024 grows by more than 50% compared to 2023. Maintain patent scale, with 141 new patent applications
	Innovation in research and development	Nuvoton Japan	To maintain its leading position in the existing market and industry, Nuvoton will continue to introduce TMOS's low Ron advanced technology for lithium-ion batteries in smartphones
	Integrity operation and corporate governance	Nuvoton Taiwan Nuvoton Japan	Corporate Governance Evaluation (listed companies) within 20% Continuously promote integrity operation and compliance education training, with a 100% pass rate for HQ staff training tests
	Productivity and business performance	Nuvoton Taiwan Nuvoton Japan	Regularly convene QBR meetings
	Regulatory compliance	Nuvoton Taiwan	Adhere to relevant domestic and international regulations, with no significant violations
	Regulatory compliance	Nuvoton Japan	100% participation rate in regulatory compliance courses
	Risk management ²	Nuvoton Taiwan Nuvoton Japan	Certified by ISO 27001:2022, the latest international standard All staff have received information security training, with a 100% pass rate. 0 information security incidents affecting company operations
	Supply chain management	Nuvoton Taiwan	Achieve a 25% SAQ (Self-Assessment Questionnaire) completion rate for major suppliers BCP (Business Continuity Plan) Ensure 86% of major suppliers obtain ISO 14064 or equivalent standards certification Have 93% of major suppliers publish ESG reports Complete verification for 50% of major suppliers through RBA VAP
	Supply chain management	Nuvoton Japan	100% response rate for supplier CSR activity survey (every 2 years) 100% annual response rate for supplier conflict minerals survey 100% response rate for business continuity survey (every 2 years) 100% annual response rate for survey on substances of very high concern (whether purchased materials contain REACH SVHC) 100% annual response rate for carbon neutrality survey
Environmental aspect	Green products	Nuvoton Taiwan	Improve product environmental benefits and set a target of reducing the carbon footprint of green products by more than 38%
	Green products	Nuvoton Japan	Green product sales accounted for 3% of total sales in 2024
	Energy and greenhouse gas management ³	Nuvoton Taiwan	Install equipment to reduce fluorinated gas emissions—reduce fluorinated gas emissions by 16% compared to the previous year (60% reduction from the base year) Establish a carbon accounting platform - formulate the 2024 plan and proposals for business requirements 2% decrease in electricity consumption compared to 2023 Update chiller hardware and use AI technology to intelligently control the air conditioning system to achieve energy savings
	Energy and greenhouse gas management ³	Nuvoton Japan	Develop a plan for the introduction of solar power generation 1% decrease in average annual energy resource usage intensity compared to the previous year 26% decrease in greenhouse gas emissions ratio compared to the base year
Social	Talent management ⁴	Nuvoton Taiwan	Strengthen employer brand Expand recruitment channels Promote career development 100% completion rate for assessment of position-specific professional competence Average employee training hours of 30h Raise awareness of hazard prevention Occupational safety education training attendance rate >95% 100% attendance rate for mandatory training courses Hazard identification, risk assessment, and control 40% decrease in (disabling occupational injuries) incident occurrence rate per thousand persons compared to the baseline average of 1.81 <1.1 0 case of occupational diseases Employee health promotion Employee cancer screening rate >50%
Social	Talent management ⁴	Nuvoton Japan	Strengthen employer brand Expand recruitment channels Promote career development Average employee training hours of 10h Raise awareness of hazard prevention Occupational safety and health general training attendance rate > 90% 100% attendance rate for new employee safety and health training Hazard identification, risk assessment, and control Risk register improvement rate of 100% 0 case of occupational diseases Employee health promotion Increase the target value of appropriate lifestyle habits through the Life Clinic Plan to 3.46

¹Changes in the List of Material Topics: The material topics for Nuvoton in 2024 are aligned with its parent company, Winbond, and have been adjusted in three directions. 1. Change of names: such names adopted in 2023 as "Management strategy and business performance," "Innovation and R&D management," "Corporate governance and business integrity," "Supplier sustainability management" and "Information security and privacy protection" were changed to "Productivity and business performance," "Innovation in research and development," "Integrity operation and corporate governance," "Supply chain management" and "Risk management," respectively. 2. Consolidation of multiple topics: such topics adopted in 2023 as "Occupational safety and health," "Talent appreciation and cultivation" were consolidated to "Talent management;" while "Greenhouse gas emissions," "Energy resource use and consumption" and "Climate change" to "Energy and greenhouse gas management." 3. Added topics: Regulatory compliance and green products. A total of 9 material topics were selected for the year 2024.

²Risk management includes the content of "Risk management" and "Information system security and personal data protection."

³Energy and greenhouse gas management includes the contents of ''Energy and greenhouse gas management'' and ''Climate-related risks and opportunities.''

⁴Talent management includes "Remuneration and benefits and employee care," "Talent recruitment and cultivation," "Human rights and equality," "Labor relations" and "Occupational safety and health."