To ensure the integrity of the risk management system, a complete organizational structure of risk management has been established to implement the checks and balances mechanism of risk management and improve the labor division efficiency of risk management. Effective risk management systems have been established in accordance with the type of risks faced by the businesses of the company. Management methods and risk measurement indicators are clearly set up to ensure the proper implementation of the annual business targets. The Risk Management Office performs daily operational monitoring, prepares the risk control reports regularly, submits the report to the Risk Management Committee every two months, and reports to the board of directors every six months.

The Code of Conduct for Board of Directors of Chunghwa Post Co., Ltd. has been established to guide directors’conduct in alignment with ethical standards, covering obligations such as confidentiality, fair transaction, avoiding conflict of interest, avoiding the appropriation of corporate opportunities for personal gain, safeguarding and properly using company assets, and encouraging the reporting of any unlawful or unethical conduct to prevent material harm. According to Chunghwa Post’s Regulations Governing Procedure for Board of Directors Meetings, directors shall recuse themselves from discussions and voting on matters in which they have a conflict of interest. A total of 12 board meetings were held in 2024. In addition, Chunghwa Post has also established operational regulations governing transactions with related parties. At the beginning of each term, directors and supervisors are required to submit disclosures of their related party information and concurrent positions. These disclosures are overseen by relevant departments and all related transactions are handled in accordance with the established rules.

The Audit Office has appointed qualified and appropriate number of dedicated internal auditors based onbusiness needs in accordance with relevant laws and regulations, and the Company has set up an auditor generalthat is appointed by the board of directors to be in charge of supervising the Audit Office and making regular reportsto the board of directors and supervisors. The Audit Office reports to the board of directors, and appropriate numberof dedicated internal auditors and an auditor general are appointed to assist the board of directors and managers toinspect and evaluate whether the internal control system is effectively working from detached, independent, objectiveand impartial perspectives. Suggestions are given when appropriate for improvement. The inspection feedback listedby external inspecting units such as the Financial Supervisory Commission, Central Bank and CPAs were reported tothe board of directors as required and tracking will continue until improvement is completely made.
The Company’s Department of Civil Service Ethics conducts the integrity agency risk assessment of theorganization, business characteristics, and personnel on a yearly basis. In 2024, 100% of the operating locationscompleted the integrity risk assessment, and the assessment results in 2023 showed that there was no significantcorruption risk. In addition, to implement the self-discipline norms of the personnel using funds of the Company andfulfill the obligation to avoid conflicts of interests, dedicated personnel are assigned to audit the personal transactionsof the personnel. In 2024, the audit was carried out 12 times, and a total of 72 people were audited to ensure safetyoperation of funds, avoid improper trading behavior, and maintain the reputation of the Company. For those managingmonetary payment, the procurement personnel and postal staff, the supervisors of the units carry out audits every sixmonths. A total of 22,919 individuals were audited in 2024 H1, and 22,875 in H2.
The assessment results showed that there was no significant corruption risk. No employees were involved in anycases of corruption in 2024, but there were 4 suspected general illegal cases that were sent to the judicial authoritiesfor investigation, and the relevant employees were held accountable for their administrative liability. In 2024, there were3 employees whose contracts were terminated due to general illegal behavior during the reporting period.

There were 298 suppliers in 2024, and the ratio of domestic procurement was about 84.68%. All green procurement operations are carried out in accordance with the scoring methods set forth in the annual government agency performance evaluation guidelines for green procurement, and the proportion of green procurement compliance was 100%.

To strengthen supplier management, Chunghwa Post introduced the Supplier Self-Assessment Questionnaire on ESG whose content covers 5 major aspects, including environmental protection, labor practices, labor rights, business ethics, and product responsibility. A total of 58 copies of questionnaire were retrieved in 2024. Amount them, 42 suppliers were rated excellent, yet the scores in the environmental protection aspect were relatively lower, leaving room for improvement.

In addition to abiding by the Four Postal Acts and their Sub-laws, Chunghwa Post has also established an integrity system for the directors and employees to improve the management of the Company. Chunghwa Post also fully implements the Legal Compliance system, with one Chief Compliance Officer (CCO) in charge of comprehensive regulatory compliance and legal affairs.
In accordance with the Regulations Governing the Internal Controls and Audit System for Postal Remittances and Savings and the Regulations Governing Implementation of Internal Control and Auditing System of Insurance Enterprises, and by referring to the practices of the same trade, Chunghwa Post has defined “major violation of laws and regulations” as the situation of being punished (or corrected or fined) by the Financial Supervisory Commission. There were no major violations of laws and regulations at Chunghwa Post in 2024. If there is major violation of laws and regulations, it shall be immediately reported to the directors and supervisors. Causes of major violations or deficiencies in terms of regulatory compliance are analyzed, and the possible impact and suggestions for improvement are presented, which after being signed by the president, the content is reported to the board of directors.
To encourage reporting illegal activities for the improvement of the management of the company, Key Points for the Implementation of the Whistleblower System of Chunghwa Post Co., Ltd. (including the whistleblower protection policy) was established in 2021 to provide complete reporting channels internally and externally. The announcement is made on the Whistleblower’s Zone on Chunghwa Post’s official website. Provisions on integrity and reporting channels are also stipulated in the procurement contract and bidding instruction for procurement projects. Channels for whistleblowing include the followings: Mailbox: P.O. Box 610, Taipei Beimen Taipei City, 10099 Taiwan; Reporting line: 02-23969104; Reporting email: whistleblower@mail.post.gov.tw.

In 2024, there were no major violations of laws and regulations, information and labels of products and services, and marketing and communication-related regulations. Relevant events and improvement measures are detailed as follows：