Remuneration Link to ESG Indicators

OUCC has a Remuneration Committee tasked with assisting the Board of Directors in formulating remuneration-related policies, systems, and reviewing the performance assessment of Directors and Managers. The Committee is chaired by an Independent Director and held a total of two meetings in 2022, with 100% attendance rate of committee members.

The process for determining Director remuneration follows the "Board Performance Evaluation Rules for Oriental Union Chemical Corporation." It assesses operation performance, future business risks in the industry, ESG project execution performance and results, and sustainable business strategy goals, taking into consideration of individual performance achievement rate and his/her contribution to the company's performance to provide reasonable compensation. The performance evaluation and reasonableness of remuneration are reviewed by the Committee and the Board of Directors. The remuneration system is periodically reviewed based on actual operating conditions and relevant laws and regulations to achieve a balance between sustainable business operations and risk management.

ESG Committee

In order to effectively coordinate and manage various ESG affairs, OUCC established " ESG Committee." The President was regularly appointed as the Commissioner responsible for final decision making, action plan review, and approval of the final reports (e.g. ESG, TCFD, SASB.) The Secretariat under the Committee is accountable for the organization and promotion of the task execution of each department, and report periodically to the Board of such progression status.

• Committee structure：Department heads serve as steering committee members, and senior managers are responsible for the committee’s operations, formulating relevant ESG policies, action plans, and cross-departmental coordination.
• Supervision and management responsibility of the Board of Directors：The Board of Directors is the highest management unit for sustainable development. It regularly reviews the sustainable development implementation results and future plans and assigns the "ESG Committee" to coordinate the review and management of sustainable action plans. The Commissioner (also a representative of the Board of Directors) regularly summarizes the implementation progress and reports to the Board of Directors.
• Meeting convention：If there are specific ESG issues in the current year, unscheduled meetings will be held to ensure that ESG issues are discussed and addressed as soon as possible, and the management process, evaluation results, and overall ESG information will be shared with the stakeholders via the ESG website and other communication channels. The goal is to maintain good interaction and negotiation relationships with multiple stakeholders.

Business Integrity

To implement managerial integraty and eliminate improper business practices, the OUCC has formulated the "Best Practice Principles" and "Code of Ethics" and provided regular education and publicity to regulate the business conduct of Directors, Managers, and employees. In 2022, 239 employees participated in 163 hours of training.

We require Directors and senior management to issue a statement of compliance with the best practice policy. It stipulates that Directors, Managers, and employees shall not directly or indirectly provide, promise, request, or accept any improper benefits, engage in dishonest acts that violate integrity, or breach fiduciary obligations while engaging in business conduct. The preceding policies and provisions are published on the company website to communicate and publicize to relevant stakeholders. OUCC shall issue punitive actions for any violation of the preceding provisions according to law. We also provide multiple communication channels. If there is a violation of the best practice regulations, the illegal behavior can be reported through the appropriate channels, which will be handled confidentially.