Articles

The Board of Directors is the highest decision-making body for corporate governance, responsible for establishing the core vision and long-term development direction of the company, and reviewing and supervising the effectiveness of sustainability policies to ensure that the operating strategies and company goals align with the expectations of stakeholders. The Board also regularly reviews and approves major decisions related to sustainability reporting, including greenhouse gas reduction targets, supply chain management policies, and corporate social responsibility plans, to actively respond to global sustainability trends and legal requirements.

To strengthen the sustainability governance framework, Avalue established the ‘Sustainability Development Committee’ in 2023, with the chairman serving as the president, and high-level executives from different professional fields serving as committee members. The ‘ESG OFFICE’ oversees the progress of various working groups. In the execution level, Avalue sets up cross-departmental multi-functional working groups to identify, manage, and respond to actual or potential impacts of the company’s operational activities. These groups report progress to the Sustainability Development Committee on a regular basis.

The division of labor for each working group is as follows:

• Environmental Sustainability Working Group (Research Department): Responsible for planning and executing environmental sustainability issues, including green product design, energy management, and environmental impact assessment.
• Social Responsibility Working Group (Management Department): Responsible for promoting issues related to employee care, workplace safety, human rights protection, and social participation.
• Corporate Governance Working Group (Accounting Department): Responsible for matters related to corporate governance systems, information disclosure, and legal compliance, ensuring the proper operation of governance mechanisms.
• Risk Management Working Group (Finance Department): Responsible for integrating the company’s overall risk management framework, identifying and assessing operational, financial, and climate-related risks, and proposing corresponding response measures.
• Ethical Business Conduct Working Group (Audit Department): Responsible for promoting ethical business conduct policies, internal audits, and prevention and management of violations, deepening organizational integrity culture.
• Supply Chain Management Working Group (Procurement Department): Responsible for promoting and managing supply chain sustainability issues, including supplier selection and evaluation, introduction of sustainable and responsible procurement requirements, identification and tracking of potential environmental and social impacts in the supply chain, and strengthening the overall resilience and sustainability performance of the supply chain.

The Sustainability Development Committee holds at least one meeting per year, with each working group advancing work related to environmental, social, governance, risk management, integrity in business, and supply chain management, among others. These groups regularly report progress, performance outcomes, and future plans to the ESG OFFICE, which then consolidates cross-departmental data and conducts preliminary reviews before submitting them to the Sustainability Development Committee for review. The committee then reports major sustainability issues, risk assessment results, implementation status, and improvement suggestions to the Board of Directors. The Board of Directors is responsible for reviewing and overseeing the company's sustainability strategy and its execution, and may require the management team to adjust strategies based on actual progress to ensure that the sustainability development goals align with the company's long-term vision. Important issues or resolutions involving external stakeholders are handled by the company's spokesperson in accordance with authorization and relevant regulations. The Sustainability Development Committee held two meetings in 2025, reporting progress on August 12 and December 18, respectively, to the Board of Directors.