Materiality Questionnaire｜Stakeholder Engagement

Equity, investor relations, competences of the Board, independence and professionalism of the governance structure, stipulations of codes of conduct, stipulations and supervisions of fraud prevention, anti-corruption, and anti-competition, the correlations between sustainable performances and compensations, diverse and smooth communications and interactions with stakeholders, and disclosures and response to communication issues, etc.

Nuvoton identifies potential external economic, environmental and social risks that may encounter in its operations, including the influence of international and domestic policies, related management and control mechanisms, such as risk monitor, precaution, aversion, emergency response measures, damage controls, and crisis management; and identifies potential improvement opportunities.

The measures and status of Nuvoton maintaining business sensitive information, customer privacy, and transaction security, including compliance with relevant regulations.

Supplier and procurement policies and mechanisms, including new supplier selections, existing supplier evaluation and audit system, delivery and quality management, supply chain sustainability requirements, supplier grievance mechanism, etc.

Nuvoton’s legal compliance, advocacy and internal policy promotion, including labor regulations, environmental regulations, anti-monopoly law, intellectual property protection, etc.

Nuvoton establishes comprehensive strategies and management practices to meet the expectations of customers, employees, shareholders, and other stakeholders regarding the operation performance, investment profits and losses, corporate finance, operating costs, market development, etc.

With the development trend of the product market, relevant actions are taken to ensure product quality and the compliance of raw materials with health and safety regulations, in order to meet the expectations of customers and market-related regulations.

The company proactively builds relationships with its customers in order to understand their needs and to improve the quality and satisfaction of its services. Relationship building can range from a purely transactional relationship to the establishment of alliances and partnerships between the two parties.

Through continuous innovation, the company develops various new products and invests in high production and high value-added services to improve the company's profitability and competitiveness, assisting customers enhancing their brand value.

In response to the risks and opportunities brought about by climate change, including but not limited to extreme weather events and the development of carbon taxes/fees, as well as the relationship with marine and terrestrial biodiversity... the company implements assessment mechanisms, mitigation measures, future planning, and evaluates the effectiveness of goals.

Nuvoton manages greenhouse gas emissions from its operations, and set short-term, medium-term and long-term goals for reducing greenhouse gas emissions.

Nuvoton 's strategies and management practices on raw materials, energy and other resources consumptions, and other management measures adopted to save energy, reduce carbon emissions, and improve the efficiency of resource utilization.

The management strategy, consumptions, and discharge of water resources, the environmental policies and management measures formulated for the utilization and protection of water resources, including water conservation, water recycling and wastewater treatment.

The Company's management strategy on air emissions including setting greenhouse gas emissions targets and procedures. Also, disclosures of air emissions of the following pollutants: (1) NOx (excluding N2O), (2) SOx, (3) particulate matter (PM10), (4) volatile organic compounds (VOCs), and (5) Acid Gas Pollution.

The waste treatment and reduction policies, water pollution discharge and reduction policies, and the process of handling and follow-up review of pollution-related incidents and preventive measures, etc.

Nuvoton takes actions on daily employee management (e.g., gender equal pay for, employment of minority groups, etc.) and suppliers (e.g., procurement policies, audits), to address gender, racial discriminations, child labor, indigenous rights, and forced labor.Human Rights is the basic right of all human. Issues that originated from human rights violation include discrimination, child labor, punishment, forced labor, etc. Human rights management refers to actions relate to daily employee and supplier management (procurement policy, assessment, audit, etc.), which ensure positive labor relations by means of bilateral communication tunnel and grievance mechanism in both internal and value chain.

In alignment with changing trend of the overall employment environment, Nuvoton's talent recruitment, employee diversity, employee compensation and benefits, and reward and performance appraisal system .

Planning for talent cultivation and comprehensive basic trainings, and assistances to employees for career development .

To improve overall employee health and safety, the company establishes occupational safety and health management measures and policies, including workplace safety maintenance, occupational risk management, employee health management programs and physical examinations, etc .

The company's commitment to public welfare activities or community involvement, including community care, community development, and communication and interaction with neighbors.