Chunghwa Post incorporates environmental protection, social responsibility, and corporate governance (ESG) and climate factors into the decision-making process for investment and actively invests in targets with sustainable value, including stocks, bonds, funds, and other types of assets. It is prohibited to invest in companies classified as tobacco, alcohol, and gambling industries in the Global Industry Classification Standard (GICS) developed by MSCI. In addition, due diligence is conducted proactively on investment targets and management is continued after investment for the grasp of changes in climate change risks so as to take countermeasures in a timely manner.

In 2023, Chunghwa Post participated in 188 shareholders’ meetings or special shareholders’meetings of TWSE listed companies by dispatching personnel or exercising e-vote. Before attending these shareholders’ meetings of the investee companies, we prudently evaluated the various proposals, prepared evaluation reports and exercised voting rights to express the attention paid to the corporate governance of the investee company. After each shareholders’ meeting, written records of the exercise of voting rights will then be submitted to the board of directors.

When the corporate governance of the investee company is flawed or does harm to the social environment, Chunghwa Post will perform shareholder activism to urge the investee company to attach importance to ESG-related issues by making use of the rights as the shareholder to communicate with the investee company and urge it to make improvements to meet the goals of corporate governance and fulfill the corporate social responsibility. In 2023, Chunghwa Post conducted communication with 3 companies concerning ESG-related issues, including the prevention of insider trading, the introduction of green products, energy management and energy-saving measures, employee health and safety related protection measures, greenhouse gas reduction plans, and enhancement of corporate governance to reduce negative news, improve grassroots salary benefits and gender pay equality, and promise or pass the Science Based Targets initiative (SBTi) review.