In response to potential future asset changes, the Department of Capital Operations encourages employees to actively participate in ESG-related forums and seminars and exchange ideas with industry peers to enhance their understanding of ESG investments. Currently, the environmental protection, social responsibility, and corporate governance (ESG) as well as climate factors are incorporated into the decision-making process for active investments in targets with sustainable value, including stocks, bonds, funds, and other types of assets. Chunghwa Post prohibits investments 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 continues to review the carbon reduction and transition commitments, visions, and strategies of its investee companies, and conducts evaluations based on their participation in the Science Based Targets initiative (SBTi). If no relevant commitments or targets are in place, the Company may incorporate the investee company into its engagement list in accordance with future policies. Through active engagement, Chunghwa Post seeks to influence and support the investee company’s transition efforts, while potentially reducing investment risks so as to improve long-term investment returns.

In 2025, Chunghwa Post participated in 152 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 2025, we held negotiations with four corporations.