Investor Relations

Risk Assessment on Topics of Materiality and Risk Management Policy

The Sustainability & ERM Committee

In order to implement the Keystone Microtech's sustainable development goals, promote corporate integrity management and strengthen sustainable corporate governance, in accordance with Article 27, Paragraph 3 of the "Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies " and in accordance with Article 9, Paragraph 1 of “Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies”, Keystone Microtech has established a Sustainability & ERM Committee on August 5, 2024. And appointed independent directors Jiang-Liang Lin, Chii-Wen Chen, Jin-Han Chen, and director Shu-Ju Huang as a member of the Sustainability & ERM Committee. Independent director Jiang-Liang Lin selected as the chairman of the Sustainability & ERM Committee.

The Sustainability & ERM Committee approved the 2023 Sustainability Report and the "2024 sustainability goals" on August 5, 2024 and submitted it to the board of directors for approval. The Sustainability & ERM Committee Report to the board of directors, communication with stakeholders and corporate integrity management on December 16, 2024.

Topics of Materiality Management Policy

Topics of Materiality	Material Theme	Management Practice
Energy Management	Energy	Ongoing management of energy saving and carbon reduction with a view to reducing energy consumption by 1% per year. Improvement of the air compressor performance, the cooling pump of the air-conditioning system, ventilation fan of the water tower, temperature adjustment setting, and reduction of energy consumption of machines. Replacement of all lighting fixtures to energy efficient light at the corporate headquarters.
GHG Management	GHG discharge
Attract and keep good people	Labor-Management Relation	Establishment of employees welfare committee with routine coordination, planning, and execution of different benefit policies of the Company. Benefit items for the employees including matters pertinent to health, daily lives, festivities, and insurance. High coverage of traveling insurance for the protection of employees who need to traveling abroad in business trips. Company has provided 125 lectures in physical classroom environment with the commitment of NT$288,542 and 2,140 training hours for this purpose. The average training cost for employees is NT$1,034 per hour.
Human Resources Development	Training and Education
Human Right	Non-discrimination
Product Responsibility	Customer Health and Safety	Inception of the MES manufacturing management system to provide timely accurate data of each stage of the production process with the statistics and integration of related information so that the management can keep abreast of the situation and take proper control. Introduction of the automatic optical test to rectify human error and inspection standard, which helps to improve quality stability and efficiency.
(Quality Management)
Supply Chain Management	Suppler Environment Assessment	Audit rating, risk classification and supervision
Innovation Management	Innovation Management	Establishment of advanced high-frequency and high-speed laboratory (high-speed mmWave Laboratory) Continued commitment of resources to the research and development and innovation of RF and high-speed application, electricity, mechanical-electrical integration analysis on heat and mechanical stress, with the availability of the most appropriate testing solutions.
Product Life Cycle Management	Product Life Cycle Management
Management of Solid Wastes	Solid Wastes	Switching to a particular organic solvent, isopropanol. This chemical has a longer life span of service that the consumption volume could be substantially reduced. The production process has been oriented towards a lead-free environment since 2023.
Occupational safety and health	Occupational health and safety	The Occupational Safety and Health Committee convenes at regular intervals to review and advocate matters pertinent to occupational safety and health, and environmental protection. An emergency response plan has been made with 2 exercise drills in responding to emergency situations and 2 exercise drills in fire safety held in 2021. No record on occupational injury or occupational disease found among all the employees and the contractors in 2021.