Stakeholder

• Stakeholder Communication

Shinfox Energy Co., Ltd. attaches great importance to stakeholder opinions and feedback, and stated that stakeholders are critical to the company’s sustainable development. In order for effective stakeholder communication and negotiation, we follow the negotiation standards, and identified seven types of stakeholder groups, including “shareholders and investors”, “customers”, “employees”, “suppliers”, “government institutions”, “neighborhood relations”, “non-profit organization” (including academic units, organizational units and groups).

The company will regularly collect stakeholder opinions and feedback, and the Sustainable Development Committee will submit it to the responsible units for follow-up. The responses to stakeholders will also be used as reference for future sustainable development plans. The company hopes to thoroughly understand stakeholder expectations through multiple communication channels, and dedicate efforts in responding to the needs of various stakeholder groups, so as to fulfill the expectations of stakeholders and keep in line with the trend of sustainable development.

• Stakeholder Communication Channel

• Major Topic Management

Seven stakeholder groups have been identified, and each with its own concerns. To meet the needs of each stakeholder, the company adheres to the GRI Sustainability Reporting Guidelines and the AA 1000SES Standards. Through the process of identifying major topics, the internal and external issues that exert deepest impact on the company, and with the highest stakeholder concern are identified as the important basis for the scope and main theme of disclosure in the report, and the development of sustainability strategies.

In the future, we will continue to analyze major topics every year to confirm the changes in the degree of stakeholder concern, with the hope to timely respond to stakeholder needs, and achieve effective management of internal and external challenges as Shinfox Energy move towards sustainable development.

The identification process for material topics:

Step 1: Collection of sustainability issues
In accordance with the GRI Sustainability Reporting Guidelines, issues of concern for our industry peers in Taiwan, majorsustainability guidelines such as the Sustainability Accounting Standards Board (SASB) and the Task Force on ClimateRelated Financial Disclosures (TCFD), the Company has integrated issues of concern for stakeholders in the past andhas compiled 20 corporate sustainability issues related to the operations of the Company。

Step 2: Operational impact analysis and ranking of material topics
Through discussions among members of the Sustainability Development Committee and senior executives, we analyzedthe degree of impact of each sustainability issue on the economic, environmental, and social (human) aspects of theCompany. Each material topic’s impact rating considers the level of the actual and potential positive and negativeimpact, and assigns a rating based on the “impact level” and the “likelihood of the impact’s occurrence”. The impact levelconsiders the scale and scope of the impact, whether it is reversible, and whether it involves impact on human rights. Foreach material topic, the positive and negative impact scores are added to the total score; its final order is based on theimpact score.

Step 3: Review and discussion
Ultimately, the ranking of the material topics was based on the degree of their impact, and the 13 material topics for2022 were finalized by members of the Sustainable Development Committee, senior executives, and managementrepresentatives. In future, we will continue to identify material topics every year to ensure that issues of stakeholderconcern are truthfully presented in reports.