Delta Electronics Inc

# Delta Group Policy Influence Guidelines

## Article 3. Management system

3.1 Delta's position on policy engagement and lobbying projects must be reported to the CEO, COO, CSO annually to confirm that the direction is consistent with the company's philosophy.

3.2 Before participating in an association, Delta management should confirm that the philosophy of the association is compatible with Delta and aligned with the goals of the Paris Agreement.

3.3 The expenditures for participating in any association must be approved by Delta's internal administrative procedures and system. All annual membership expense items above certain amount shall require final approval by the COO or CEO.

3.4 The expenditures for participating in associations shall be compiled and disclosed on the company's official website every year.

3.5 Review and monitor process

3.5.1 Regularly review the participation in trade associations and direct lobbying activities in order to monitor if the association is true to their statements.

3.5.2 If the association philosophy is incompatible with Delta and the principles of the Paris Agreement, Delta should exert influence on the association to amend their position by providing supporting material, issuing public statements or other approaches. If the association doesn't amend their position, Delta should make public statements that clarify that it is distancing from the misalignment, or leave the association.

The Delta ESG Committee, under the jurisdiction of the Board of Directors, is Delta's highest-level internal climate risk and opportunity supervision body. The Committee comprises a number of board members, operational team members, Chief Sustainability Officer (CSO), regional operations directors, and functional directors. The CSO reports to the board on a quarterly basis on climate change trends and Delta's climate related management progress. [...] The Corporate Sustainability Development Office under the ESG Committee is responsible for following international climate change trends, as well as promoting and coordinating projects related to climate change and renewable energy. The business groups are responsible for developing various energy-efficient products and solutions, and developing products and services that contribute to climate change mitigation and adaptation. The Energy Management Service Department is responsible for providing energy efficiency improvement services.

Delta's Board of Directors is the Company's highest sustainability oversight unit, and the management team members on the Board of Directors belong to Delta's Global ESG Committee Board of Directors, which is the highest-level climate and natural risk and opportunity oversight organization within Delta. Board members have always paid close attention to the latest climate change developments in the international community, and relevant knowledge has been incorporated into the professional functions of the Board of Directors. The issues under its supervision include climate strategy, climate transition plans, greenhouse gas inventory and reduction, internal carbon pricing, and related budgets and project implementation results. It also participates in the Delta ESG Committee and directly supervises Delta's climate change risk and opportunity management. In 2022, Delta officially incorporated biodiversity promotion into Delta's sustainability strategy, and the Board of Directors also included biodiversity risk assessment, renewable electricity ecological due diligence investigation, and related strategies into the scope of supervision. Delta established the ESG Committee as the core unit for promoting ESG, and it also has several ESG functional committees and project teams composed of business groups, region directors, and department directors. They are responsible for formulating Delta's project plans, development tools, and procedures and they organize regular meetings to plan annual sustainability strategies, review the operations of the Group and various functional committees, and supervise the effectiveness of the execution of major projects to support and intensify Delta's sustainable development. [...] Delta established the Corporate Social Responsibility Committee in 2007 and changed its name to the ESG Committee in 2021. It is the top management unit for climate and nature-related risks and opportunities. We established the position of Chief Sustainability Officer in 2019. The "Corporate Sustainability Development Department" is established under the jurisdiction of the Sustainability Committee. Its responsibilities are to analyze international sustainability trends, plan adaptation, mitigation, and other climate actions together with other management units to respond to the impact of climate risks on operations. It is also responsible for assessing TCFD, TNFD, nature-related frameworks and methodologies, Science Based Targets for Nature (SBTN), and Environmental Profit and Loss (EP&L) to study the ways in which biodiversity issues are promoted by enterprises and project development opportunities. Additionally, it is responsible for integrating internal climate and nature-related information, and coordinating external communication documents such as sustainability information. Important documents such as the annual ESG Report is submitted to the Board of Directors for approval. In response to the sustainability trends and transition needs, Delta's Sustainability Committee has also established task groups on various topics based on the three major areas of "Corporate Governance", "Environmental Protection and Energy Savings" and "Employee Relations and Social Participation". The project teams for "Supply Chain ESG Management" ", "Energy and Water Conservation and Waste Reduction Management", "Carbon Management", and "Product Stewardship" are responsible for the strategic planning and implementation of climate issues. The "Biodiversity" project team was added in 2022 to implement related projects. In addition, we established an "Energy and Water Conservation and Waste Reduction Management" subcommittee for the "Energy and Water Conservation and Waste Reduction Management" project. For the "Carbon Management" project, we established "RE100" and "Scope 3 Category 11" subcommittees to implement regular cross-regional energy resource target management and performance tracking, and ensure the attainment of renewable electricity targets at each site. For the "Product Stewardship" project, we established a "Product Carbon Footprint" subcommittee to work with each business group in launching a comprehensive pilot project on the Group's product carbon footprint in 2022. To effectively manage and implement sustainability issues, Delta has established a "Regional ESG Committee" in each region to implement and manage sustainability issues in each region. [...] Delta holds at least one board meeting every quarter for board members to discuss important ESG issues, review climate and nature policies, strategic planning and actions, and oversee the implementation and results of climate and nature goals. To ensure effective communication of management progress, the Chief Sustainability Officer regularly reports the long-term strategies for climate and nature actions to the Board of Directors at the annual strategy meeting, and reports the status of all projects to the Board of Directors every quarter. In 2023, the Chief Sustainability Officer made four reports to the Board of Directors on topics including important trends, key data, biodiversity policy updates, greenhouse gas reduction management, external ratings results, and the overall effectiveness of the implementation of energy and carbon management budgets.

Delta's Board of Directors is the Company's highest sustainability oversight unit, and the management team members on the Board of Directors belong to Delta's Global ESG Committee Board of Directors, which is the highest-level climate and natural risk and opportunity oversight organization within Delta. Board members have always paid close attention to the latest climate change developments in the international community, and relevant knowledge has been incorporated into the professional functions of the Board of Directors. The issues under its supervision include climate strategy, climate transition plans, greenhouse gas inventory and reduction, internal carbon pricing, and related budgets and project implementation results. It also participates in the Delta ESG Committee and directly supervises Delta's climate change risk and opportunity management. In 2022, Delta officially incorporated biodiversity promotion into Delta's sustainability strategy, and the Board of Directors also included biodiversity risk assessment, renewable electricity ecological due diligence investigation, and related strategies into the scope of supervision. Delta established the ESG Committee as the core unit for promoting ESG, and it also has several ESG functional committees and project teams composed of business groups, region directors, and department directors. They are responsible for formulating Delta's project plans, development tools, and procedures and they organize regular meetings to plan annual sustainability strategies, review the operations of the Group and various functional committees, and supervise the effectiveness of the execution of major projects to support and intensify Delta's sustainable development. [...] Delta established the Corporate Social Responsibility Committee in 2007 and changed its name to the ESG Committee in 2021. It is the top management unit for climate and nature-related risks and opportunities. We established the position of Chief Sustainability Officer in 2019. The \"Corporate Sustainability Development Department\" is established under the jurisdiction of the Sustainability Committee. Its responsibilities are to analyze international sustainability trends, plan adaptation, mitigation, and other climate actions together with other management units to respond to the impact of climate risks on operations. It is also responsible for assessing TCFD, TNFD, nature-related frameworks and methodologies, Science Based Targets for Nature (SBTN), and Environmental Profit and Loss (EP&L) to study the ways in which biodiversity issues are promoted by enterprises and project development opportunities. Additionally, it is responsible for integrating internal climate and nature-related information, and coordinating external communication documents such as sustainability information. Important documents such as the annual ESG Report is submitted to the Board of Directors for approval. In response to the sustainability trends and transition needs, Delta's Sustainability Committee has also established task groups on various topics based on the three major areas of \"Corporate Governance\", \"Environmental Protection and Energy Savings\" and \"Employee Relations and Social Participation\". The project teams for \"Supply Chain ESG Management\" \"Energy and Water Conservation and Waste Reduction Management\", \"Carbon Management\", and \"Product Stewardship\" are responsible for the strategic planning and implementation of climate issues. The \"Biodiversity\" project team was added in 2022 to implement related projects. In addition, we established an \"Energy and Water Conservation and Waste Reduction Management\" subcommittee for the \"Energy and Water Conservation and Waste Reduction Management\" project. For the \"Carbon Management\" project, we established \"RE100\" and \"Scope 3 Category 11\" subcommittees to implement regular cross-regional energy resource target management and performance tracking, and ensure the attainment of renewable electricity targets at each site. For the \"Product Stewardship\" project, we established a \"Product Carbon Footprint\" subcommittee to work with each business group in launching a comprehensive pilot project on the Group's product carbon footprint in 2022. To effectively manage and implement sustainability issues, Delta has established a \"Regional ESG Committee\" in each region to implement and manage sustainability issues in each region. [...] Delta holds at least one board meeting every quarter for board members to discuss important ESG issues, review climate and nature policies, strategic planning and actions, and oversee the implementation and results of climate and nature goals. To ensure effective communication of management progress, the Chief Sustainability Officer regularly reports the long-term strategies for climate and nature actions to the Board of Directors at the annual strategy meeting, and reports the status of all projects to the Board of Directors every quarter. In 2023, the Chief Sustainability Officer made four reports to the Board of Directors on topics including important trends, key data, biodiversity policy updates, greenhouse gas reduction management, external ratings results, and the overall effectiveness of the implementation of energy and carbon management budgets.

Delta's ESG Committee is its highest-ranking sustainable management organization. The ESG Committee oversees 10 project teams that focus on three major aspects of ESG goals including corporate governance, environmental protection and energy conservation, as well as employee relations and social participation. [...] All of the Delta activities were under ESG Committee oversight. The preliminary assessment of economic activities conforms to DNSH criteria.

Delta's ESG Committee is its highest-level sustainable management organization. Since its founding in 2007, the committee has continuously evolved with sustainability development trends. Delta established the role of Chief Sustainability Officer (CSO) in 2019 to promote and intensify Delta's development. Mr. Bruce Cheng, founder and honorary chairman of Delta, serves as honorary chairman of the committee, while Chairman Yancey Hai acts as the chairman. Mr. Yancey Hai resigned from the position of Chairman in May 2024, and Mr. Ping Cheng, the new Chairman, will take over as the Chair of the committee. The ESG Committee oversees regions ESG Committee, staff organizations and execution units including project teams and the Corporate Sustainability Development Department. Delta Electronics Foundation is also invited to attend meetings of the ESG Committee. The "Corporate Sustainability Development Department" serves as the secretariat which is responsible for analyzing international trends in sustainable development and understanding stakeholder expectations to identify material topics. It carries out project management and promotion to address the possible impacts of material topics such as environment, social, and governance on operations and jointly plans application strategies and execution plans with various function subcommittees. Each year, it also drafts the ESG Report which is approved by the Board of Directors for issuance. The Committee oversees 10 project teams that focus on three major aspects of ESG goals including corporate governance, environmental protection and energy savings, and employee relations and social participation. The project teams are composed of business groups, region directors, and department directors. They are responsible for formulating Delta's project plans, development tools, and procedures and they organize regular meetings to plan annual sustainability strategies, review the operations of the Group and various functional committees, and supervise the effectiveness of the execution of major projects. The CSO reports the implementation results and future work plans for sustainable development on behalf of the Company to the Board of Directors each quarter. The Committee held four meetings in 2023 and the proposals discussed included: (1) sustainable development topics and project progress reports (2) analysis of important international ratings (3) stakeholders and material issues (4) progress of international initiatives. The Board of Directors oversees and supervises the progress of sustainable development strategies and projects and provides guidance.

# Delta Group Policy Influence Guidelines

## Article 3. Management system

3.1 Delta's position on policy engagement and lobbying projects must be reported to the CEO, COO, CSO annually to confirm that the direction is consistent with the company's philosophy.

3.2 Before participating in an association, Delta management should confirm that the philosophy of the association is compatible with Delta and aligned with the goals of the Paris Agreement.

3.3 The expenditures for participating in any association must be approved by Delta's internal administrative procedures and system. All annual membership expense items above certain amount shall require final approval by the COO or CEO.

3.4 The expenditures for participating in associations shall be compiled and disclosed on the company's official website every year.

3.5 Review and monitor process

3.5.1 Regularly review the participation in trade associations and direct lobbying activities in order to monitor if the association is true to their statements.

3.5.2 If the association philosophy is incompatible with Delta and the principles of the Paris Agreement, Delta should exert influence on the association to amend their position by providing supporting material, issuing public statements or other approaches. If the association doesn't amend their position, Delta should make public statements that clarify that it is distancing from the misalignment, or leave the association.

Delta's business operations are closely integrated with sustainable development. The Company's Board of Directors actively participates in the formulation of sustainability strategies and their implementation in core businesses and daily operations through the ESG Committee led by the management team. [...] Delta's ESG Committee is its highest-ranking sustainable management organization. Since its founding in 2007, it has continuously transformed with sustainability development trends. Delta established the role of Chief Sustainability Officer (CSO) in 2019 to promote and intensify Delta's sustainable development. Mr. Bruce Cheng, founder and honorary chairman of Delta, serves as honorary chairman of the committee, while Chairman Yancey Hai acts as the chairman. The committee is composed of the following members: vice chairman, CEO, COO, CSO, and top regional operations and functional executives. The ESG Committee oversees staff organizations and execution units including project teams and the Corporate Sustainability Development Department*. Delta Electronics Foundation is also invited to attend meetings of the ESG Committee. The Corporate Sustainability Development Department serves as the secretariat which is responsible for analyzing international trends in sustainable development and understanding stakeholder expectations to identify material topics. It makes adjustments and mitigates possible impact of material topics such as climate change on operations and jointly plans application strategies and execution plans with various function subcommittees. It also drafts the ESG Report each year and submits it to the Delta ESG Committee for issuance. [...] The Committee oversees ten project teams that focus on three major aspects of sustainability goals including corporate governance, environmental protection and energy conservation, and employee relations and social participation. The "Responsible Business Alliance" project team was added in 2020. The project teams are composed of business groups, region directors, and department directors. They are responsible for formulating Delta's project plans, development tools, and procedures and they organize regular meetings to plan annual sustainability strategies, review the operations of the Group and various functional committees, and supervise the effectiveness of the execution. The results of the execution are reported to the Board of Directors each quarter.

The Delta Environmental, Social and Governance Committee (ESG Committee) is directly supervised by the Board of Directors and is the highest-level unit monitoring climate risks and opportunities within Delta. The committee consists of a number of board members, including the founder of Delta, the chairman, the vice chairman, the CEO, and the COO, as well as CSO and top operations executives of regions and functions. [...] The ESG Committee directly governs ten sub-committees or projects, including the inclusion of SBT, RE100, and EV100 into carbon management. Its Energy Conservation, Water Conservation, and Waste Reduction Committee monitors the implementation of energy conservation, water conservation, or waste reduction projects in plants, green buildings, or data centers. Its Supply Chain ESG Committee coordinates and conducts supply chain greenhouse gas inventories and climate change responses.

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]To facilitate the consistency of Delta's corporate strategies, sustainability, climate change strategies and to ensure that the engagement activities we participate are consistant with our strategy, the ESG Committe is the process in place to manage the overall affairs. Delta's business operations are closely integrated with sustainable development. The Company's Board of Directors actively participates in the formulation of sustainability strategies and their implementation in core businesses and daily operations through the ESG Committee led by the management team. Climate actions are thus made an indispensable part of the business model.

The Delta ESG committee has Mr. Bruce Cheng, founder and honorary chairman of Delta serving as honorary chairman of the committee, while Delta Chairman Mr. Yancey Hai acts as the chairman. The ESG committee is composed of board members, including the vice-chairman CEO and COO as well as CSO and top executives from regional and functional management. It has assisting and execution subordinate units, including various task forces and a Corporate Sustainability Office. The chairman of the Delta ESG Committee reports results from the implementation of sustainable development and future work plans to the Board of Directors every quarter. In 2021, the committee convened a total of four meetings, whose contents of motion included:
(1) "Race to Zero†, a global campaign for net-zero carbon emissions;
(2)sustainable development issues (RE100, power purchase agreements in relation to green power wheeling, internal carbon pricing, CDP, and carbon tax regulations);
(3) the current status of circular economy promotion;
(4) stakeholder issues.

The Corporate Sustainability Development Department serves as the secretariat which is responsible for analyzing international trends in sustainable development and understanding stakeholder expectations to identify material topics. It makes adjustments and mitigates the possible impact of material topics such as climate change on operations and jointly plans application strategies and execution plans with various function subcommittees. The Board of Directors listens to sustainable development reports presented by the management team each quarter while reviewing the progress of the Company's sustainable development strategies and offering necessary guidance.

Attach commitment or position statement(s)[…]Delta has always been compatible with both the activities in which we partake, and the global temperature goals of the Paris Agreement. Since 2015, we have implemented the policies of the We Mean Business Coalition. Delta was a leader in publishing the Delta Climate Action Plan in 2015 as supporting the Paris Agreement. The specific achievements on the "We Mean Business" commitments are:
1. Committed to adopting a science-baced emissions reduction target
2. Committed to report climate change information in mainstream reports as afiduciary duty
3. Committed to responsible corporate engagement in climate policy
4. Converted to electric vehicles and expanded chargeing facilities
5. Promoted 100% renewable electricity
Delta adopted a science-based target (SBT) in line with 2°C future in 2017, announced to join the EV100 Initiative in 2018, joined the Business Ambition for 1.5°C Campaign in 2021. All these engagement activites is to proactively respond to the UN Race to Zero initiative to limit global temperature rise to 1.5°C before industrialization.

The attached document is the position and commiment in Delta's 2021 ESG Report (p.79) 5.3 Net Zero Commitment and Carbon Management, as a reference to our commitment in line with the goals of the Paris Agreement.

Does your organization have a public commitment or position statement to conduct your engagement activities in line with the goals of the Paris Agreement?[…]Yes