Philosophy and Goals

The "Novatek ESG Sustainability Committee" are responsible for formulating corporate sustainable development goals, integrating resources from relevant departments, reporting regularly to the Board of Directors, and preparing the "Novatek Sustainability Report", while ensuring that all material issues identified are covered in order to implement the sustainable development policies.

 

ESG Committee

Novatek ensures the implementation of its sustainable development policies through the "Novatek ESG Sustainability Committee". The Chairman of Novatek appoints Mr. Chien-Hsing Chen (David Chen), the Vice President and spokesperson of the Company, as the Chairman of the Committee. The Committee consists of five working groups including Corporate Governance, Partner’s Co-Prosperity, Environmental Sustainability, Friendly Workplace and Social Participation, which are responsible for formulating corporate sustainable development goals, integrating resources from relevant departments, reporting regularly (at least once a year) to the Board of Directors, and preparing the "Novatek Sustainability Report", while ensuring that all material issues identified are covered in order to implement the sustainable development policies. The Board of Directors regularly (at least three times a year) listens to the management reports on the implementation progress of major ESG issues. The Board of Directors evaluates strategic feasibility or provides other recommendations for the contents of management reports and tracks the implementation progress and monitors the management to assess and adjust planning matters. The implementation results in 2024 and the work plan in 2025 have been reported to the Board of Directors in the first quarter of 2025. 

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ESG Risk Management Strategies

2024 risk management policies or strategies for major environmental, social and corporate governance issues related to the operation of the Company are as follows, and the Chairman of the ESG Committee reports regularly (at least once a year) directly to the Board of Directors. The operations and implementation status of sustainable development were reported to the Board of Directors on February 25, 2025.

Major issues

Risk assessment items

Risk management policies or strategies

Environment

Response to climate change
  • Utilize the Task Force on Climate-related Financial Disclosures (TCFD) framework to identify climate risks/opportunities faced by Novatek, formulate corresponding management policies, and track the achievement of goals.
  • Increase the procurement of renewable energy and the targets for the use of renewable energy: 20% by 2025, 50% by 2030, and 100% by 2050.

Environmental impact and management
  • Continuously obtaining multiple ISO energy and carbon management certification certificates and actively promotes various greenhouse gas emission reduction measures, while collaborating with suppliers to align with the Company’s sustainable development goals.
  • The Company completed the greenhouse gas inventory and verification process for all overseas subsidiaries in 2025.
  • Committed to improving energy efficiency in order to implement its green operation policies.
  • The Company plans to implement a pilot program for internal carbon pricing in 2025.

Society

 

Healthy workplace
  • To prevent occupational injuries and ensure the safety and health of employees, the Labor Safety, Health and Environmental Protection Committee is established, which regularly holds meetings and promotes various labor safety, health and environmental protection related businesses.
  • Continue to implement training plans to ensure that internal responsible personnel receive relevant safety and health education and training.
 Human Rights and Employee Communication
  • In accordance with the Responsible Business Alliance (RBA) Code of Conduct, the Company continues to strengthen and implement the RBA management system.
  • Actively promotes human rights education and awareness, while ensuring a safe and healthy working environment.

Corporate
Governance

Regulatory compliance
  • Improve the integrity management, pay attention to changes in policies and laws, and implement internal control mechanisms.
  • Apply for patents for new technologies developed by Novatek, to protect the Company’s rights, and put emphasis on intellectual property maintenance and management. The Company continues to obtain A-level verification from the Taiwan Intellectual Property Management System (TIPS).
  • Monitor and review risk changes regularly and on a rolling basis, to ensure the effectiveness of risk management plans and related control operations.

Enhancing the effectiveness of the Board of Directors
  • Implement the Board of Directors professional expertise and diversity goals.
  • Conduct internal self-performance evaluations for the Board of Directors, functional committees, and individual board members once a year; have performance evaluations implemented by specialized, external, independent organizations every three years.
  • Continue to plan education and training programs for directors.
 
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