ESG Governance

ESG Governance Structure

Personnel or Units	Role
Chairman
Chairman	The top leader responsible for sustainable development also spearheads Advantech's global corporate sustainability strategy and development.
Board of Directors
Board of Directors	Regular review of corporate sustainability performance, review of sustainability materiality in the report, review of Sustainability Report publication, and discussion of material ESG topics.
Board of Directors Corporate Sustainability Committee at the Board of Directors Level-SDC (Sustainability Development Committee)
Board of Directors Corporate Sustainability Committee at the Board of Directors Level-SDC (Sustainability Development Committee)	Chairman K.C. Liu (convener), Director Jeff Chen, and Director Ji-Ren Lee, totaling three committee members. Annual discussion topics include climate change strategy, corporate carbon management and carbon pricing, voluntary carbon credits, response strategies and opportunities for the EU's new sustainability regulation (CSRD), diversity, equality and inclusive workplace development, low-carbon product planning and sustainable raw materials, ESG KPI performance review and incentive mechanism for middle and senior supervisors, waste management and UL-2799 certification, and the EU Taxonomy. Expected discussion topics in 2025 include the SBTi update application project, the internal carbon fee project, the TCNFD disclosure project, and others. Corporate Sustainability Committee at the Board of Directors Level-SDC (Sustainability Development Committee) is convened quarterly for a total of four meetings per year. Climate-related issues are included on the agenda of the Board of Directors at least once a year, and the Sustainability Committee is the responsible unit for managing climate change.
Executive-Level ESG Corporate Sustainability Office
Executive-Level ESG Corporate Sustainability Office	The main leader is the President of General Management, who gives instructions and suggestions to the ESG Corporate Sustainability Development Office. Responsible for identifying Advantech's sustainable development topics, formulating annual development goals and plans, and convening regular quarterly meetings. Depending on the topic, Board members, external experts, and industry benchmarks are invited to offer their suggestions. ESG projects will be implemented by responsible teams, and the ESG Corporate Sustainability Development Office will track their performance regularly and propose improvement plans. The ESG Corporate Sustainability Development Office reports to the Chairman the planning and progress of relevant projects from time to time. The Chairman gives direction and strategic advice, while the President is invited to participate in important meetings and decision-making.

ESG Organizational Structure of Advantech

Advantech's corporate mission is to enrich the smart world with IoT technology, and our sustainability mission is to become a catalyst for a sustainable planet by leveraging our core strengths. As a multinational corporation based in Taiwan with a global perspective, Advantech adheres to policies of international responsible business conduct, which align with various declarations and guidelines including, but not limited to, the Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy of the International Labour Organization (ILO), the Universal Declaration of Human Rights, and, despite not being a UN member state, also considers the United Nations Global Compact, the United Nations Guiding Principles on Business and Human Rights, the OECD Guidelines for Multinational Enterprises, and the Responsible Business Alliance Code of Conduct (RBA Code of Conduct) in its operational management and implementation of ESG policies. Related policies and documents, see: Sustainability Report - ESG (advantech.com)

Advantech's highest governance unit and ESG governance unit oversee due diligence. Through the identification of annual sustainability material topics, progress management, and tracking of goals, we aim to determine the level of positive and negative impacts of Advantech's operations on the economy, environment, and people (society). If there is no negative impact, the supervision will continue to be positive and preventive measures will be implemented. Adopt mitigation or remedial measures if there are negative impacts. Additionally, Advantech planned the "Procedures for Sustainability Information Management" in advance. This is in preparation for establishing an internal control system for "Sustainability Information Management" and incorporating it into the audit plan. The procedures cover the overall quality management of sustainability information, including ESG-related data disclosed for regulatory compliance or on a voluntary basis. Furthermore, through internal controls and multi-level reviews, the risk of misstatement is minimized, ensuring the disclosure of high-quality sustainability information and enabling effective stakeholder engagement. The measures also aim to reinforce sustainability governance and continue to enhance Advantech's performance.
For detailed information of this report, please refer to the descriptions in the management guideline tables within each material topic chapter to understand the Company's material sustainability performance.

Advantech's commitment:

Improve corporate governance performance and strictly comply with the business ethics plan and related laws and policies.
Enhance the all-round value of the Company, continue to bring positive influence and create positive value to various stakeholders.
Combining core strengths, we actively invest in innovative research and development to provide smart products and solutions that contribute to environmental development and social impact; continue to increase the proportion of revenue from sustainable intelligent solution, reduce environmental impact at operating locations, and improve own green operation performance.
Emphasizing the long-term development of employees, building a DEI workplace with Diversity, Equality, and Inclusion, and providing employees with a healthy and safe working environment, reasonable compensation, employee care and benefits, and promoting the value addition of talents.
Encourage employees to participate in charitable causes with an altruistic spirit and establish a “volunteer leave system” to promote employees' contribution to the community and society.
Progressively enhance the cooperation and education and training on the three ESG dimensions with external suppliers each year, and work together with suppliers to create sustainable value and low-carbon business opportunities.
Advantech has incorporated the spirit of due diligence into its sustainability governance, as well as the management of sustainability topics and the disclosure of human rights-related information. Identify and manage the actual and potential negative impact of Advantech's sustainability topics on the economy, environment, and people, and 7 implement preventive and mitigation actions accordingly.

Advantech has published the Sustainability Report since 2013. In terms of ESG governance mechanisms, we improve the governance mechanisms year by year by researching domestic and international sustainability trends and the practices of its benchmark companies