Corporate Sustainability Governance

Sustainability Commitment and Organizational Operations

EGAT Sustainability Governance Organizational Chart

Board of DirectorsSustainability CommitteeConvenerSustainability Committee
Executive Team SecretarySustainability Committee Executive TeamVice Convener

Environmental ProtectionGroup

Environmental policy management
Climate change governance
Energy and greenhouse gas/carbon emission management
Waste and hazardous substance management
Water resources and wastewater treatment management

Corporate GovernanceGroup

Functions of the Board of Directors
Sustainability information disclosure and communication
Business integrity and ethics
Operational performance
Risk management
Information security management

Product and ServiceGroup

Product safety and quality
Customer rights and service quality
Low-carbon manufacturing and sustainable products
Sustainable supply chain management

To enhance sustainable development management, EGAT established a dedicated unit for promoting sustainable development in November 2023, namely the Sustainability Committee, as one of its functional committees. This committee is responsible for reviewing and overseeing the formulation of sustainable development policies, strategies, objectives, or management guidelines, as well as supervising specific implementation plans. The Sustainable Development Committee is composed of the Chair as the convener, the President as the deputy convener, and three independent directors as committee members. The committee has set up an executive team, which in turn has four issue focus groups based on the four major identified issues: Environmental Protection, Social Prosperity, Corporate Governance, and Product and Service.

Environmental Protection Group

Social Prosperity Group

Corporate Governance Group

Product and Service Group

The Executive Team, led by the President as the chief executive, consists of the heads from various departments. It aims to effectively integrate resources and implement the Company's sustainable strategies, jointly promoting environmental protection, social participation, corporate governance, and achieving sustainable development and net-zero goals. The principles for appointing members to the Executive Team mainly consider whether their capabilities can effectively integrate resources and implement the company's sustainable strategies. Executive team members are required to participate in various discussions and educational training sessions intermittently to continuously enhance relevant capabilities.

The Executive Team regularly reports the progress of sustainability initiatives to the Committee, which in turn reports to the Board of Directors. In 2025, the Committee convened 4 meetings and submitted 4 reports to the Board of Directors, covering key topics including the 2025 Sustainability Work Progress, Stakeholder Engagement Report, and Risk Management Implementation Report.

To enhance the quality management of sustainability information, EGAT has incorporated the “Procedures for the Preparation and Verification of Sustainability Reports” into its internal control system in 2025 to ensure the accuracy and completeness of sustainability reports.

Identification of Material Issues and Stakeholder Communication

In identifying its material sustainability topics, EGAT follows the latest GRI Standards (2021), considers domestic and international sustainability trends, and benchmarks developments among leading aerospace companies. The Sustainability Task Force gathers professional insights regarding the positive and negative impacts of sustainability issues on the economy, environment, and people, including human rights, as well as the level of concern expressed by seven categories of external stakeholders. In addition, EGAT adopts the double materiality principle proposed by the European Union, taking both the financial and non-financial impacts of sustainability issues on “EGAT” and the impacts of its operations on the “economy, environment, and people” into account. Through the processes of identification, assessment, and prioritization, EGAT determined 12 material topics for 2025. EGAT will review material topics annually and conduct the double materiality assessment process every two years based on the context of materiality, stakeholder inclusiveness, sustainability context, and completeness. These material topics will be integrated into Enterprise Risk Management (ERM) to more effectively and precisely manage organizational risks and plan short, medium, and long-term sustainable development strategies.

Step1 Identification

7 Categories of Stakeholders

Adopting the AA1000SES: 2015 (AccountAbility 1000 Stakeholder Engagement Standard: 2015), stakeholders are categorized based on the five major principles of dependency, responsibility, influence, diversity of perspectives, and tension of concerns, and further defined into 7 major categories: Government/Competent Authorities, Investors/Shareholders (including Banks), Employees, Customers, Suppliers, Community (including NGOs/NPOs), Academic Institutions

16 Sustainability Issues

Referencing international sustainability standards such as the United Nations Sustainable Development Goals (SDGs), United Nations Global Compact (UNGC), Global Reporting Initiative (GRI), Task Force on Climate-Related Financial Disclosures (TCFD), Sustainability Accounting Standards Board (SASB) and industry-specific sustainability reports and concerns, 16 sustainability issues are identified.

Environmental

Climate change governance
Energy and greenhouse gas/carbon emission management
Waste and hazardous substance management
Water resources and wastewater treatment management

Social

Compensation, employee welfare, and labor-management communication
Occupational safety and health management
Employee diversity and workplace inclusion
Talent cultivation and development
Community engagement and social welfare

Governance

Business integrity and ethics
Sustainable supply chain management
Risk management
Information security management

Products and Services

Product safety and quality
Customer rights and service quality
Low-carbon manufacturing and sustainable products

Step2 Assessment

74 sustainability impact questionnaires and 72 financial impact questionnaires

The management and executive team of EGAT assigned quantitative scores to sustainability issues based on the likelihood of occurrence and level of their positive and negative impacts on the economy, environment, people (including human rights), and the Company's operational management. These scores served as the basis for assessing the impact of each sustainability issue on overall sustainability and financial performance. A total of 74 valid questionnaires were collected for the sustainability impact assessment, and 72 valid questionnaires were collected for the financial impact assessment.

320 Questionnaires on Stakeholder Concerns

Stakeholders from the seven categories rate their level of concern regarding the issues on a scale of 1-5, providing insight into the concerns of each stakeholder category. A total of 320 valid questionnaires were collected, including 245 from employees, 32 from suppliers, 12 from customers, 9 from academic institutions, 9 from investors/shareholders (including banks), 8 from government/competent authorities, and 5 from the community (including NGOs/NPOs). Based on statistical analysis, the top five material topics of concern for external stakeholders, ranked by score, are product safety and quality, occupational safety and health management, customer rights and service quality, information security management, and risk management.

Step3 Prioritization

Positive and negative sustainability impacts are cross-referenced with financial impacts and analyzed alongside the results of the stakeholder concern questionnaires to identify the material topics of EGAT.

Step4 Review

The results of the material topics are reviewed and approved by the Company’s highest sustainability governance body ── the Board of Directors. Management policies for each material sustainability topic are established, and the status of action plans and goals is periodically reviewed. A total of 16 sustainability issues were included in the materiality analysis. After cross-analyzing the sustainability and financial impacts and evaluating stakeholder concerns via questionnaires, the issues were ranked based on their score relative to the origin. Consequently, 12 material topics for EGAT were identified for 2025. The levels of sustainability and financial impact are shown in the figure below.

Short, Medium, and Long-term Goals and Action Plans

EGAT has established short-, medium-, and long-term goals for its identified material topics and conducts annual tracking and management to continuously refine its sustainable development blueprint.

Note: As the Company reviewed and adjusted its short-, medium-, and long-term goals in 2025, the progress toward these newly established goals is to be disclosed in the 2026 sustainability report.

Environmental

Material Topics	Short-term goals (2026-2030)	Medium-term goals (2031-2035)	Long-term goals 2036 and later
Waste and hazardous substance management	Conduct quarterly reviews of toxic substances and air pollution regulations to track regulatory changes and ensure company compliance Air pollution emissions from the plant are within legal limits, with no violations. Waste recycling rate by 2030: 36% 2030 waste intensity (Note 1): 0.07	Conduct quarterly reviews of toxic substances and air pollution regulations to track regulatory changes and ensure company compliance Air pollution emissions from the plant are within legal limits, with no violations. Waste recycling rate by 2035: 38% 2035 waste intensity (Note 1): 0.05	Conduct quarterly reviews of toxic substances and air pollution regulations to track regulatory changes and ensure company compliance Air pollution emissions from the plant are within legal limits, with no violations. Waste recycling rate: Maintain at 40% Waste intensity (Note 1): Maintain at 0.04
Energy and greenhouse gas/carbon emission management	GHG emissions intensity to be reduced to 0.8 by 2030 Renewable energy share 10% Implementation of Scope 3 GHG inventory and system establishment	GHG emissions intensity to be reduced to 0.5 by 2035 Renewable energy share 25% Complete the inventory of Scope 3 categories that are relevant and contribute significantly according to the GHG Protocol, and obtain a verification statement	Net zero GHG emissions by 2050 100% renewable energy use by 2050 Complete the inventory of Scope 3 categories that are relevant and contribute significantly according to the GHG Protocol, and obtain a verification statement
Water resources and wastewater treatment management	Factory wastewater discharge complies with regulations, with no violations. Increase rainwater harvesting and promote its reuse Collect water consumption data through existing and newly installed water meters and integrate the data into the energy management system to enable systematic monitoring and management of plant-wide water usage. 2030 water intensity (Note 2): 0.013	Factory wastewater discharge complies with regulations, with no violations. Systematic monitoring and management of plant-wide water usage 2035 water intensity (Note 2): 0.01	Factory wastewater discharge complies with regulations, with no violations. Systematic monitoring and management of plant-wide water usage Water intensity (Note 2) maintained at 0.01 after 2036

Material Topics	Short-term goals (2026-2030)	Medium-term goals (2031-2035)	Long-term goals 2036 and later
Occupational safety and health management	Work-related injury days <26 days; SR <4 Number of disabling injuries <10; FR <1.64 Annual completion rate of employee health check-ups: 100%.	Work-related injury days <23 days; SR <3 Number of disabling injuries <9; FR <1.47 Annual completion rate of employee health check-ups: 100%.	Work-related injury days <21 days; SR <3 Number of disabling injuries <8; FR <1.31 Annual completion rate of employee health check-ups: 100%.
Compensation, employee welfare, and labor-management communication	Employee satisfaction and engagement scores must be at least 3.5 Annual voluntary turnover rate below 5% Manager performance evaluations are linked to sustainability indicators, with a weighting of at least 30% per year.	Employee satisfaction and engagement scores must be at least 3.5 Annual voluntary turnover rate below 5% Manager performance evaluations are linked to sustainability indicators, with a weighting of at least 30% per year.	Employee satisfaction and engagement scores must be at least 3.5 Annual voluntary turnover rate below 5% Manager performance evaluations are linked to sustainability indicators, with a weighting of at least 30% per year.
Talent cultivation and development	Annual internal rotation rate is 10% or higher Average training hours per technician: 60 hours/year Average training hours for indirect sales and management personnel: 4 hours/year	Annual internal rotation rate is 12% or higher Average training hours per technician: 60 hours/year Average training hours for indirect sales and management personnel: 4 hours/year	Annual internal rotation rate is 14% or higher Average training hours per technician: 60 hours/year Average training hours for indirect sales and management personnel: 4 hours/year

Governance

Material Topics	Short-term goals (2026-2030)	Medium-term goals (2031-2035)	Long-term goals 2036 and later
Information Security Management	Zero cases of customer privacy violations or data leaks Conduct core system business continuity drills twice a year to enhance organizational resilience Conduct a privileged account inventory every six months to reduce the risk of account misuse. Invest in two information security-related products or improvement projects each year 100% database backup and restoration success rate Endpoint security software installation rate ≧98%	Zero cases of customer privacy violations or data leaks Conduct core system business continuity drills twice a year to enhance organizational resilience Conduct a privileged account inventory every six months to reduce the risk of account misuse. Continue to refine the information security management system Invest in five information security-related products or improvement projects each year 100% database backup and restoration success rate Endpoint security software installation rate ≧99%	Implement information security policies and privacy protection measures to ensure the goal of zero leakage of customer privacy or data Establish a zero-trust security architecture Conduct core system business continuity drills twice a year to enhance organizational resilience Conduct a privileged account inventory every six months to reduce the risk of account misuse. Expand the scope of the Information Security Management System certification Invest in eight information security-related products or improvement projects each year 100% database backup and restoration success rate Endpoint security software installation rate ≧99.5%
Risk management	Identify, adjust, and add new risk items annually based on international trends and industry changes, including emerging risks.	Identify, adjust, and add new risk items annually based on international trends and industry changes, including emerging risks.	Identify, adjust, and add new risk items annually based on international trends and industry changes, including emerging risks.
Business integrity and ethics	Zero cases of violations of ethical conduct and Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies. Conduct employee integrity and ethical training courses once a year; employee participation rate was 99% (Note 3) Corporate Governance: Organize director training courses twice a year, each lasting three hours. Conduct internal Board performance evaluation operations once a year.	Continue to maintain zero cases of violations of ethical conduct and Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies. Conduct employee integrity and ethical training courses once a year; employee participation rate was 100% (Note 3) Strengthen ethical management and anti-corruption training to enhance employees' awareness of legal and regulatory compliance Corporate Governance: Continue to organize continuing education courses for directors Conduct external Board performance evaluation operations	Continue to maintain zero cases of violations of ethical conduct and Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies. Ensure all employees adhere to high ethical standards to foster a corporate culture of integrity Continue to strengthen the corporate governance system to protect the rights and interests of investors and stakeholders

Products and Services

Material Topics	Short-term goals (2026-2030)	Medium-term goals (2031-2035)	Long-term goals 2036 and later
Product safety and quality	100% achievement rate for conducting internal and external audits and obtaining certifications 100% completion rate for safety report improvement measures The maintenance services provided shall not result in any accidents	100% achievement rate for conducting internal and external audits and obtaining certifications 100% completion rate for safety report improvement measures The maintenance services provided shall not result in any accidents Obtained Gold-level NADCAP certification	100% achievement rate for conducting internal and external audits and obtaining certifications 100% completion rate for safety report improvement measures The maintenance services provided shall not result in any accidents Gold-level NADCAP certificates account for 50% of the total
Customer rights and service quality	Customer satisfaction average score >9.69 (out of 10 points).	Customer satisfaction average score >9.74 (out of 10 points).	Customer satisfaction average score >9.74 (out of 10 points).
Sustainable supply chain management	Aircraft material suppliers with transaction amounts exceeding NT$6 million (required every three years or upon revision), as well as new suppliers, must sign the Supplier Code of Conduct, with an annual recovery rate of over 80% Conduct a supplier sustainability risk assessment survey (SAQ) every two years with a 70% response rate Suppliers with an SAQ score higher than 70 are defined as excellent suppliers	Aircraft material suppliers with transaction amounts exceeding NT$6 million (required every three years or upon revision), as well as new suppliers, must sign the Supplier Code of Conduct, with an annual recovery rate of over 85% Conduct a supplier sustainability risk assessment survey (SAQ) every two years with a 75% response rate Suppliers with an SAQ score higher than 75 are defined as excellent suppliers	Aircraft material suppliers with transaction amounts exceeding NT$6 million (required every three years or upon revision), as well as new suppliers, must sign the Supplier Code of Conduct, with an annual recovery rate of over 90% Conduct a supplier sustainability risk assessment survey (SAQ) every two years with a 80% response rate Suppliers with an SAQ score higher than 80 are defined as excellent suppliers

Note 1: Waste intensity = Total waste processed (tons) / Company revenue (NT$ million)
Note 2: Water intensity = Total water consumption (thousand tons) / Company revenue (NT$ million)
Note 3: Participation rate = Number of employees who have completed training/Total number of current employees.