In response to the impact of potential asset changes in the future, the Department of Capital Operations has incorporated factors of environmental protection, social responsibility, corporate governance (ESG), as well as climate factors into the investment decision-making process, and actively invested in targets with sustainable value, such as stocks, bonds, funds, and other 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.

Chunghwa Post will continue to pay attention to the commitments, visions, and strategies of the carbon reduction transformation of the invested companies, and make assessment of them through their participation in the Science-Based Targets Initiative (SBTi). We will seek to influence and support its transition through engagement depending on the future policy trends, which may possibly reduce investment risks, and further increase the long-term investment returns.

In 2024, Chunghwa Post participated in 183 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 there are flaws in the corporate governance of the invested company or incidents that may harm the social environment, Chunghwa Post will make use of its shareholder rights to engage in dialogue with the invested company for improvement to meet the goals of corporate governance and sustainable development. In 2024, we held negotiations with four corporations.