AUO ESG InsightFounded in 1996, AUO Corporation has approximately 38,000 employees worldwide
and operates a business network that spans Taiwan, Mainland China, Japan,
Korea, the U.S., and Europe. The company outstands and differentiates itself bybroad experience, innovation capabilities, and corporate sustainability. AUO has
succeeded in earning worldwide recognition for its total solutions with its strong
R&D capacity, solid manufacturing expertise, and comprehensive product portfolio
to meet the market's diverse needs.

Biaxial Transformation
On our path toward value transformation under AUO NEXT, AUO continues to strengthen its research anddevelopment of forward-looking display technology while launching high-end product applications ahead of themarket. Furthermore, AUO is expanding into selected fields and teaming up with ecosystem partners to actively
create smart field applications and value-added innovations. Over the past few years, AUO has promoted abiaxial transformation strategy, including “Go Premium” and “Go Vertical”. As for “Go Premium”, AUO has
continued to invest in high-quality and high-value production capacities in recent years, adjusting its productmix and increasing the proportion of high value-added products. As for “Go Vertical”, AUO will continue tofocus on display technology while devoting attention to diversified applications in five fields: smart medical care,smart manufacturing, smart entertainment, smart retail, and smart transportation. AUO will start from panels,
combine hardware systems, software, and solutions, and create value by applying field management.

Sustainability Recognitions

Climate Change A-

2023 ESG Insight1

AUO 2025 EPS Target
The 17 Sustainable Development Goals (SDGs) developed by the United Nations was used by AUO to de­fine a corporate sustainability roadmap of "Go Beyond CSR, Create Shared Values." Nine key SDGs wereidentified through the ranking of scores and used to consolidate the company's medium and long-term 2025
sustainability strategies. Targets and actions plans are also set every year for the continued implementationof related initiatives. The three EPS (Environment, People and Society) themes focusing on environmental
sustainability, inclusive growth and agile innovation.

2025 Targets

EnergyOptimization

Set reduction targets based on lifecycle and reduce carbon emissions by up
to 6.5 million tones CO2e cumulatively.

> 100%

Water
Optimization

Work with the value chain to combat
the threat of water resource shortages
and conserve up to 100,000 CMD in
tap water cumulatively.

> 100%

Spearhead the development of
the circular value chain, expand its
economic performance and achieve a
growth rate of 135%.

84%

Climate
Adaptation

Increase the resilience of climate
adaptation and continue to reduce therisk of fi­ nancial impact from climatechange issues.

Continue tomanage risk

Quality
Education

Provide diversifi­ed educational
opportunities to more than 600,000
people and increase employee
participation in AUO quality education
by 20% each year.

85%

Inclusive
GrowthSupport the disadvantaged and ally
with industry chain partners to growinclusive employment and learning
opportunities more than eight-fold

98%

Enjoyable
WorkplaceBecome the preferred enterprise andreach 80% in employee identi­fication
with the four dimensions in Primarydemand, Management support, Team
work and Learning and growth.

Continueachieved

Adorable andClean Energy

Improve capability in renewable
technology, expand the installedcapacity of renewable energy aroundthe world and double the cumulative
growth rate. (100% cumulative growth)

89%

Smart
Manufacturing

Boost industry competitivenessand overall performance by 50%
through intelligent manufacturing andtechnology integration.

84%

Intelligent
Life

Develop products and integrated
services to expand the cumulative
reach of education, health, finance,
shopping, lifestyle, transport and othersmart city applications so that it canreach one billion people

95%

Circular
Environment
Production

PeopleSociety2023 ESG InsightSDGs

2018-2023
Cumulative
Achievement Rate

Categories

2

Environmental Management Systems
100% sites with
ISO 14001

Environmental

ISO 14064

ISO 50001

QC 080000

See AUO Sustainability Report

Responding to Net-Zero Initiatives
AUO is committed to achieving net zero emissions and actively participates in international climate
initiatives. As a member of RE100, AUO has pledged to achieve 100% renewable energy by 2050, making us
the first global display manufacturer to do so.

AUO set a Science
Based Target, which
was approved by
SBTi, to achieve
an absolute 25%
carbon reduction
by 2025 with well
below 2°C scenario
and use 2018 as thebase year.

AUO joined
RE100 andcommitted
to using 30%
renewable energy
by 2030 and
100% renewableenergy by 2050.

AUO publish climaterelated financial
disclosure reports
to enable external
stakeholders to
fully understand theachievements andinformation regarding
climate-related risks
and opportunities.

AUO worked withenterprises to establish
Taiwan Climate
Partnership to promote
the implementation ofenergy saving and carbon
reduction and drive
industry chain suppliers
towards net zero.

Joined the Taiwan
Alliance for Net Zero
Emission and committed
to achieve net zero in thecorporate headquarters
building by 2023, net
zero in all offices building
by 2030, and towards
net zero.

Net Zero & RE 100 by 2050
M tonsCO2e4Committed Initiatives

Achievements(~2023)
2.92
2.44

3

2.43

• Low-energy consumption
technology/process• Green energy PPA• Equipment upgrade• Zero-emission fuel• Negative emissions technology(capture/storage )• Self-built power plants• Carbon credits• Certificates purchase

Achievements (~2023)• Energy efficiency improvement• 4000+ Projects databank• Productivity improvements21

2004-2018
Carbon intensity

2018-2023
Absolute emissions

70%

32%

SBT emissions
reduction 25%

toward Net Zero

RE 10

RE 30

2025

2030

RE 1000
20042023 ESG Insight2021 2022 2023

2040

2050 Year

3

Environmental

SocialGovernance

AUO TCFD Management Framework
See AUO TCFD Report

Carbon Price

Governance

Strategy• Board of directors supervision• Risk and opportunity identification• Responsibilities and roles ofopportunities• Scenario and analysis

process

AUO implements the carbon
pricing mechanism bytracking the international
carbon trading market andgreen electricity price.
The annual carbon prices
are used as a reference forinternalizing the company's
external costs, such asenergy saving investment
evaluation and carbon
emission costs of employees'
business travel. In 2023,
AUO's carbon price was
TWD 6,424 per ton.

• Financial impact of risks andmanagement

Risk Management

Indicators and Targets• Identification/ evaluation process• Indicators for evaluating risks and• Integrate climate adaption into

• GHG emissions management

opportunities• Management process• Target formulation and outcome

existing risk management systemreview

GHG Emissions Management
GHG Emissions (tons CO2e)

2021

2022

2023

Scope 1 (Direct Emissions)

0.08M

0.07M

0.07M

Scope 2 (Indirect Emissions: Imported Energy)

2.84M

2.37M

2.36M

Scope 3 (Indirect Emissions: Other)

1.29M

1.00M

2.24M

GHG Emissions Intensity (kgCO2e/m2)

43.0

51.47

44.11

Energy Management
Strategy• Promote Renewable Energys• Increase Energy Efficiency

2025 Target

Achievement
2023 annual electricity savingrate 3.3%

Annual electricity saving rate 1.5%

2021

2022

2023

19,056,415

16,777,770

17,244,509

18,264,773

15,844,111

16,205,153

Natural Gas

668,188

630,025

701,170

LPG

26,71823,177

22,234

Diesel

76,49056,62053,863

774

759

983

Self Generated and Used Solar Power

19,47239,863202,343

Self Generated and grid tied Solar Power (output)

198,978

188,198

188,269

Energy consumption per input sheet (GJ/m2)

0.28

0.35

0.31

Energy consumption per revenue (GJ/10,000 NTD)

0.51

0.68

0.66

Energy Management (GJ)
Purchased Electricity

Gasoline

Energy Intensity

2023 ESG Insight4

Environmental

SocialGovernance

Water Management
Strategy2025 Target• Reduce dependence on water resources• Water consumption:• Improve production water recovery rate
• Develop a range of water reclamation resources• Water condition monitor and contingency plans

Achievement< 64,000 CMD• Process water recycling
rate: > 93%

2023 water consumption
56,897 CMD, with processwater recycling rate 95%

2021

2022

2023

Water Management (million tons)

24.99

21.55

23.81

Surface water (include rainwater)

0.02

0.01

0.01

Groundwater

0.42

0.25

0.20

Third-party water (freshwater)

22.46

18.85

20.77

Third-party water (reclaimed water)

2.10

2.43

2.84

Production Water Recycle Volume

137.57116.38184.07

Process water recycling rate %94.47%

94.89%

95.02%

19.92

16.53

18.41

0.29

0.35

0.33

Production Process
Process Water Consumption (million tons)
2

Process Water Intensity (tons/m )Waste Management
Strategy• Prioritize reuse within the production process• Raw materials reduction• Recycling before incineration and landfill

2021

2022

2023

Waste Management (tons)

82,65576,20473,467

Recycled

68,491

68,19867,358

Incinerated

8,033

5,019

5,178

Landfilled

3,511

1,484

759

Others

2,620

1,503

172

82.86%

89.49%

91.69%

Total Air Emissions (tons)

2021

2022

2023

ODS Emissions

0.07

0.07

0.05

Sulfur Oxide (SOx)

50.0

54.5

52.0

Nitrogen Oxide (NOx)

72.5

87.6

81.72

Volatile Organic Compounds (VOC)

168.5

123.3

138.8

Recycled waste %Air Emissions

2023 ESG Insight5

Environmental

SocialGovernance

Biodiversity, and Ecosystems, and Zero-Deforestation Policy
AUO respect and support the spirit of the Convention on Biological Diversity and of the Kunming-Montreal
Global Biodiversity Framework,. To move toward a sustainable and common good future with our stakeholders,
AUO revised “ AUO Biodiversity, and Ecosystems, and zero-deforestation Policy” and committed to start with
our own operation and collaborate with our value chain to value, conserve, restore and wisely use biodiversity tomaintain ecosystem services and deliver benefits essential for all.
Adapt
●●

●●

Positive Impact
Environmental education promotion, supplier
response

AUO has 4 factories thathave received the LEED
certification

Positive Impact

Apply Task Force on Naturerelated Financial Disclosures(TNFD) in risk management
Adapt

Assess & Disclose
Disclose in sustainability reportin accordance with TCFD and
GRI guideline

Foster positive
impacts
on biodiversity,
fulfill a living inharmony withnatureAUO
Operation

Stakeholder Communicate/
Respect the Rights

RestoreReduceAvoid

Stakeholder partnership cultivation,
environmental impact assessment
public hearing

Restore●●AUO – on-site/off-site restore●●

Environment – afforestation, ecologicalconservation

ReduceEnvironmental regulations, such as water
discharge standards, air pollution control, etc.

Avoid
●●

Material procurement: Green procurement●●

Production: environmental impact assessment●●

Product impact: green product label /regulatory compliance (EPEAT、WEEE、RoHS…)(EPA label, FSC...)

Plastic Neutral
Plastic poses a threat to biodiversity, and AUO is committed to reducing plastic use in our production process
and employees' daily lives. 2023 is set as the benchmark year, and our goal is to achieve "plastic neutrality" by2030. We collaborate with suppliers to jointly declare plastic neutrality goals and take action, calling on theentire value chain to join us in reducing plastic waste.
Procurement and Supply
Since 2018, AUO has been working toincrease the recycling and reuse ratesof plastic packaging. By encouraging
customers and supply chain torecycle their packaging materials,
we reduce material purchases anddecrease carbon emissions.

Manufacturing
The manufacturing department is theprimary user of plastic consumables,
and our key management approach
focuses on "reducing the use ofplastic consumables in production,""increasing the reuse rate of
consumables," and "enhancing thepotential for plastic waste recycling."

Waste Disposal Recycling
To improve the circularity of plastic
waste and reduce landfilling of nonrecyclable materials, AUO implements
measures such as establishing adetailed classification process andexpanding collection and recycling
channels. This helps enhance therecycling potential of plastic waste.

Hazardous Substance Management
AUO annually revises “The Green Products Hazardous Substance Management Regulation” according tointernational regulation, the requirements of customers, and environmental protection trends. In 2023, AUO has
managed and controlled 153 hazardous substances, and the hazardous substances under control can cover therequirement of all key customer specifications.
Banned Class A

The Test Report is required to prove it does
not contain AUO banned substances

12 items

Banned Class B

The Suppliers could self-declare that it does
not contain substances banned by AUO

58 items

Reporting

The controlled substance that the supplierneeds to specify the content or concentration

77 items

2023 ESG Insight6

Environmental

SocialGovernance

Product Innovation
AUO, as a global leading panel manufacturer, is driving its dual-axis transformation strategy through "GoPremium" to excel in display technology and "Go Vertical" to deepen vertical market applications. It has
strategically invested in diverse businesses, such as smart mobility. Furthermore, AUO is dedicated to developing
displays with lower energy consumption, with the goal of becoming a global leader in providing green products.
AmLED (Adaptive mini LED)
Through AUO exclusive dynamic control technology, AmLED dynamicallyadjusts and optimizes zones in real-time based on the usage scenario, which
creates stunning and precise images while achieving higher energy efficiency.
By 2023, AmLED is expected to be widely used in automotive displays, with
19 products already incorporating this design, resulting in energy savings ofover 20% compared to traditional non-mini LED backlight products.

Interactive Transparent Window
AUO incorporates the integration of high-transparency Micro LED
displays into the side windows of vehicles, providing touch functionality
for entertainment, online video conferencing, and the exhibition of safety
warning information.

Large Transparent Micro LED display
An ultimate technology suited to a variety of applications including
digital signage, commercial displays, corporate meeting rooms, residential
interiors, and more.

Eco-friendly Concept Product
AUO has partnered with our customer for eco-friendly laptop,
manufactured using PCR (Post-Consumer Recycled Plastic), recycled
glass substrates and recycled steel for the back panel of laptop displays.

Renewable Energy Development
AUO energy business starts from the vertical integration of solar module manufacturing and extends to theconstruction of solar power plants, operation and maintenance of power companies. Its energy storage andenergy management software business is also growing with the increase of the proportion of renewableenergy used.
AUO Energy Business Four Major Services

Achievement
2023 solar power modules shipment

Solar Power
Moduleand ProductSolar Power
Plant Built

EnergyManagement
and Storage

Building
Attached/
Integrated
Photovoltaic
Solutions2023 ESG Insightachieved 472 MW

Accumulative solar power plantinstallation achieved 516 MW

The estimated annual electricity generation of
650 million kw which result in a reduction of
325,000 metric tons of carbon emissions.

7Social Management Systems
100% sites withSocial

ISO 45001

ISO 9001

IATF 16949

See AUO Sustainability Report

Human Right Protection
AUO is dedicated to safeguarding the human rights of employees, and formulated human rights
management policy and system by referring to international standards, Global Sullivan Principles, The UN
Guiding Principles on Business and Human Rights and Responsible Business Alliance Code of Conduct.
Commitments and Policies

Freedom of
employment

Equity andinclusion

Prohibition of illegal
workplace violations

Health and safetyof employees

Prohibition ofchild labor

Human Rights Management Process
Risk Assessment• Risk Identification,

Warning Light
Management

Prevention

Supervisory• Human Rights Policy,

Mitigation• Grievance Channel,

Anti-Sexual Harassment
Policy, Occupational
Safety and Health andPolicy, Recruitment/
Appointment Policy

Audit System• Education andTraining, Awarenessand Communication,
System Management

Stakeholder Human Rights Risks Matrix
High

Medium Risk

High Risk• Forced labor - Working hours• Occupational safety• Privacy protection• Health, safety and personal liberty• Freedom of choice of employment• Freedom of speech and expression• Freedom of assembly and association• Protection of labor conditions• Prohibition of child labor• Non-discrimination, diversity andtolerance• Right to family lifeLow

2023 ESG Insight

Low Risk• Unlawful infringement and sexual
harassment in the workplace

Risk impact

AUO conducts human rights risk
assessments for stakeholders.
I n 2 0 2 3 , w e s u r ve ye d a n dreceived 591 questionnaires
from employees, suppliers,
contractors, and members of
the local community. The risk
calculations were used as areference to identify the risks
associated with each humanrights topic. Using this twodimensional matrix, AUO is able
to prevent and mitigate potential
risks and hazards.

Scope of impact

High

8

Environmental

SocialGovernanceFreedom of Association/ Labor unit
AUO promote friendly and positive labor-management relations by guaranteeing worker’s rights to freedom of
association and collective bargaining

TaiwanSuzhouHas regularly labor-management
conference based on Labor Standards Act

100% unionparticipation

XiamenKunshan

100% unionparticipation

Singapore

100% unionparticipation

29% union
participation

In 2023, there were 0 incidents of social disputes

Labor Practice Indicators
AUO is committed to creating a diverse and inclusive working environment that values equality, integration,and development. Employment opportunities at AUO are not based on factors such as gender, race, language,
religion, etc. These factors do not affect remuneration and promotion opportunities.

Distribution by gender

Distribution by age

Gender

2021

2022

2023

Age

2021

2022

2023

Female12,957 (33%)

12,490 (34%)

12,152 (35%)

12,777 (32%)

10,636 (29%)

10,001 (29%)

Male

26,523 (67%)

24,212 (66%)

22,841 (65%)

25,094 (64%)

24,172 (66%)

22,826 (65%)

Total

1,609 (4%)

1,894 (5%)

2,166 (6%)

39,48036,702

34,993

<29
30~49
>50
Total

39,48036,702

34,993Distribution Ratio of New Employee Hires and Employee Turnover
Overall

GenderNumber of Resignations
New Employees
Turnover Rate

Without China

China

2021

2022

2023

2021

2022

2023

2021

2022

2023

9,004

6,774

6,439

1,372

1,477

1,203

7,632

5,297

5,236

53,28631,99327,946

2,198

1,699

996

51,08830,294

26,95022.81%

18.46%

17.52%

6.57%

7.30%

6.22%

41.05%

32.16%

30.03%

China's Direct Labor Market structure is rather complicated and unstable, including a large number of temporary workers who cause
high employee turnover. AUO has continuously made efforts to adjust the manpower structure by reducing the proportion of shortterm employees, which results in the reduction of turnover rate.

Employee Gender Ratio Information
AUO attaches great importance to gender equality and career development of both genders. Female employees
account for more than 30% of all employees and 28% of global female management positions. AUO has attachedgreat importance to "gender equality" for a long time, continued to achieve the career development goals ofoutstanding female employees, and has been included in the Bloomberg Gender Equality Index for the sixth
consecutive year.
GenderOverallManagers

Indirect Employees Managers

Direct Employees
Managers

Mid Level Managers

Senior Level Managers

Female34.73%

28.04%

51.89%

12.97%

8.77%

Male

65.27%

71.96%

48.11%

87.03%

91.23%

Employee Compensation
Employees are the greatest asset of AUO. AUO provides multiple and competitive
remuneration and career development opportunities. Salaries of employees
worldwide are determined based on factors such as educational background,experience, knowledge and skills, without any differentiation due to gender,
ethnicity, nationality, religion, age, physical disability, political stance, marital status,
or union membership.
Aligned with the company's overall operation, reward incentive schemes for both
short-term and long-term goals are designed with varying job flexibility to shareprofits with employees. This approach aims to attract and retain high-quality talent.

2023 ESG Insight

Starting salary for
employees of 2023

1.3 times

the local
minimum wage

9SocialEnvironmental

GovernanceRatio of Basic Salary and Remuneration of Women to Men
Indirect Employee

DirectEmployee
Taiwan AUO
Employee

NonManagers

JuniorManagers

Mid-level
Managers

SeniorManagers

1.01

0.96

1.02

1.21

0.94

Employee Support
Annual Personal
Subsidy• Lunar New Year

Festival Bonus• Travel reward points• Dragon Boat Festival

Festivity
Subsidy

Accident
Condolence• Wedding Subsidy• Childbirth Subsidy• Childcare Subsidy

gift money• Moon Festival Bonus• Hospitalization

Condolences• Occupational Injury

Condolences• Funeral Condolences

Employee Stock
Ownership Trust Plan
AUO set up an "employee
stock ownership trust plan"
to relatively allocate incentive
funds to help employees savesmall amounts in the longterm and establish a shortto-medium-to-long term
flexible fund utilization or
financial planning.

Pension Scheme
AUO has set up the "Employee Pension Regulation", and contributed towards relevant social security premiums
including labor pension, medical care, senior pension and so forth as legally stipulated at each operating locationfor every employee. For Taiwan sites, AUO established the "Retirement Fund Supervisory and Management
Committee" as required by law, to oversee pension management and retirement procedures. We appoint
actuaries to compile an actuarial report every year to ensure that the reserve is adequate to meet pension
obligations. With the launch of the new pension system, the company will deposit 6% of the employees' monthly
salary into the employees' personal pension accounts in accordance with their pension interval.

Employee Engagement
AUO actively cultivates constructive employee relations. Employees can give their opinions through a variety ofopen and constructive channels of communication such as via the "Internal Communication Mailbox," "President's
Mailbox". Audit Committee Member's Mailbox," "Sexual Harassment Grievance Mailbox" and the "7885 Hotline".
All the cases filed 2023 were cautiously handled and closed.
Number of cases accepted by Internal Communication Channels in 2023
TaiwanMainland
China

Other area

Settled
Cases

Internal Communication
Mailbox

98

284

1

383

President’s Mailbox

12

26

0

38

Sexual Harassment
Grievance Mailbox

2

0

0

2

2,720

1,540

0

4,260

7885 Please Help Me Hotline

Q12 Employee
Engagement Survey
In 2023, the Q12 average
results achieved 84%. The

sample of more than 29,500
employees had a coveragerate of nearly 81%.

Talent Attraction & Retention
AUO has established an "Education and Training Procedure" as the basis for employee education and training.
Education and training are used to enrich employees' knowledge and skills, improve productivity and quality,
and combine employee growth with corporate development goals. Since joining the company, we have invested
extensive resources into employees of different job positions and ranks, to conduct learning and developmentwith systematic training plan, such as new employee training, on-the-job training, self-study, etc. Under the trendof digital learning, AUO has launched synchronous and asynchronous teaching modes with pre-recorded, live
broadcast, micro- lectures, and e-learning textbooks to reshape the learning experience.

2023 ESG Insight10

Environmental

SocialGovernance

Global Talent Recruitment
AUO actively implements the "ESG-TALENTS" strategy to achieve sustainable talent development.
Currently, AUO has a global workforce of about 35,000 employees, with presence across Asia, theAmericas, and Europe. In line with its dual-axis transformation strategy, AUO focuses on three key areas oftalent innovation. With a goal of global expansion, AUO has established overseas research and development
teams in the United States and Japan, attracting local talents to enhance its global competitiveness.
Research and Development of Innovative Talent
Focusing on Advancing Display Technology

Industry-academy Cooperation:
The AUO Industry-academy
Center signed a MOU with the
University of Illinois, UrbanaChampaign (UIUC) to focus
on cooperation in the fields of
medical product technology andautomotive display technology,
aiming to foster global talent inadvanced display technologies.

Global Talent
Recruitment

Cross-disciplinary
Innovation Talent

Data Innovation Talent
Driving Digital
Transformation in theEnterprise

Identifying Customer
Needs, Integrating
Software and Firmware,and Providing Solutions

Talent Development
AUO University
Starting from 2001, AUO University is to cultivate well-rounded business specialists as well as provide
AUOers with diverse and comprehensive channels for in-service training and self-development.
Sustainability Competences
AUO adheres to the Sustainable Training Roadmap by conducting tiered training for different employee
groups. Aiming to raise sustainable awareness and professionalism of employees and making sustainableawareness an integral part of every employee's working DNA. College of ESG held a variety of activities
and themed courses to create an atmosphere for all employees to learn about sustainability and strengthen
their knowledge and skills. Include master lectures, carbon management practice classes, sustainability
literacy surveys, and sustainability podcasts, etc.

Achievement
Highlight
Launching over 6,000
courses in 2023

Center of Industry
Academia Collaboration

Center of College Affairs

34 ESG Sustainability
courses and workshops
was held in 2023
with overall 29,980
attendance
Average courses
satisfaction rating foris 9.6 out of 10
AUO has cultivatedCollege of
ESG

College of
Future2023 ESG InsightCollege ofBusiness

College of
LeadershipCollege of
ScienceCollege ofEngineering

College of
Liberal Arts

Training
Executive
Committee

5,000 employees tobecome lecturers forthe university

11

Environmental

SocialGovernance

Building the DEI culture
AUO embraces the principles of diversity, equality, and inclusion in its corporate culture. Across its global
sites, AUO actively seeks and welcomes diverse talents, ensuring that gender, race, language, religion,and other differences do not hinder employment, compensation, or advancement opportunities. Throughinitiatives encompassing cognitive insights, awareness shaping, advocacy action, optimizing environments,
and refining systems, AUO continues to expand its impact in the areas of diversity, equity, and inclusion (DEI).
DEI
Performance
DEI recognition 88%

Acknowledge

ElevatingAwareness

Advocacy• DEI Literacy• DEI Advocacy• Speeches from

Surveyfrom senior
managers

female scientists• Speeches topromote genderequality

Workplace &Welfare System• Friendly

environmentand benefits

Female manager 28%

Foreign migrant
workers support
programOccupational Health & Safety
Being people-centric, AUO continually devotes itself to promoting a culture of safety and seeks toconstruct a safe working environment through risk management. In 2023, all AUO manufacturing basesin global completed the ISO 45001 certification of occupational safety and health management systemand covered 100% of sites. The Taiwan factory has simultaneously obtained the CNS 45001 certificate in
response to laws and regulations.

Safety and Life
Saving Rules

Hazard Identification
and Risk Assessment

Employee Engagement
and Communication

Contractor Safety
Management

Employees are notallowed to engage indangerous work without
training or certification.
Employees should refuse
work assignmentsthat violate the Safety
and Life Saving Rules
to protect their own
safety and work rights.

AUO follows theframework of the
Occupational Safety
and Health Management
System to execute
hazard identificationassessment, classify, andcontrol, to achieve thepurpose of eliminatinghazards and reducerisks.

According to the
Occupational Safety
and Health Act, to electlabor representatives,and jointly revise safety
and health work rules,
accident investigation,
implement operating
environment monitoring,etc., and jointly makedecisions on various
safety and healthrelated issues.

We have establishedstandard procedureswith the digital
Contractor Safety
Management System foreffective management.
In order to preventand reduce contractor
accidents and improve
contractors' safety
literacy, AUO hasorganized a total of
1,240 contractor
education and training
courses in 2023.

2023 Occupational Injury Statistics
Number ofWork-related Fatalities

Ratio of Recordable
Work-related Injuries(n/million hours worked)

Number of Recordable
Work-related Ill Health

AUO

0

0.49

0

Supplier

0

0.19

0

2023 ESG Insight

12

Environmental

SocialGovernanceSupply Chain Management
AUO Supplier/Subcontractor Code of Conduct
All new suppliers are required to sign the “AUO Supplier/Subcontractor Code of Conduct ComplianceStatement”, to commit to respecting integrity, anti-corruption, and sustainability related international
standards, such as RBA code of conduct and SA 8000. Starting from 2023, additional codes are included
such as biodiversity conservation, forest protection, soil conservation, carbon reduction and energy saving
in response to international trends.
AUO Supplier Management and Audit
Management
Process• Comply with thestandards construction• Risk assessment• Audit confirmation• Continuous improvement

Risk Evaluation• ESG self-assessment

Engagement
Recognition

RBA Audit• Follow RBA conduct to• Identify high-risk

suppliers and take follow
up actions (including
human rights issue)

audit• Monitoring theimprovement state• Third party verificationon the SCM CSR portal• Majoring issues course

sharing• Excellent partnercommendation• Quarterly Business

Review mechanism

Green Supply Chain - Commit to Reduce Carbon Emissions by 20% by 2030
AUO and key suppliers are committed to lowering carbon emissions every year after 2025 and achieving
the 2030 carbon emission goal of an absolute reduction of 20%. By introducing ISO 14064 GHG inventory
and ISO 50001 energy management system, AUO strives to achieve carbon inventory and carbon reduction
in collaborations with its supply chain partners.
Conflict Minerals
AUO is committed to fulfilling its
social responsibilities, respecting
and protecting human rights andestablishing a conflict-free minerals
policy in accordance with the due
diligence procedures of the OECDand also requires suppliers to comply.

1.AUO restates that AUO and its suppliers shall assume
responsibility together for community and environment
protection.
2.AUO does not accept gold (Au), tantalum (Ta), tin(Sn), tungsten (W) ,and Mica mined illegally in Congoor conflict areas near Congo.
3.AUO will inform and ask its suppliers to perform theabove statement.

In 2023, 1,240 suppliers have been investigated and 1,745 part numbers have been validated to ensure that all sources
for Gold (Au), Tantalum (Ta), Tin (Sn), Tungsten (W), and Mica came from non-conflict regions.

Supplier Sustainability Partnership Performance
In the international low-carbon trend, suppliers are facing pressures on water, energy and resource
consumption and carbon reduction. AUO make concerted efforts with the supply chain in climate action,water saving, energy saving, carbon reduction, waste reduction and green operations.

Energy Saving andCarbon Reduction
Suppliers cooperate tosave electricity and reducecarbon emissions 98,000
ton in 2023

2023 ESG Insight

Water Saving
Suppliers cooperate
to reduce 14,031
CMD since 2018

Supplier Packaging
Material Recycling

Co-prosperity
Series Activities

Cooperate with suppliers
to reduce 95.7% of supplierpackage through reverse
logistics and recycling

4 courses on government policies,
product carbon footprint experience,
drill transformation strategy, energy
saving and carbon reduction sharing

13

Governance

Governance Organization
The duties of AUO’s Board of Directors include: Supervising the Company’s strategy, monitoring the management
and the operation, and arrangement of the corporate governance system. It is also responsible for the Company
and the Shareholders’ Meeting, and exercises its powers in accordance with the law, the regulations of Articles
of Incorporation, or the resolutions of the Shareholders’ Meetings. In addition, through the disclosure of the
Directors’ attendance at Board Meetings and interest avoidance status in the annual report, the requirementsof each Director’s own responsibilities and obligations are emphasized to ensure the performance of Company
monitoring and management. The Board meets at least once every quarter, and there were 7 meetings convened
in 2023 with 100% attendance.
Corp. Governance &Nomination Committee

Shareholder Meeting
Board of Directors

Audit Committee
Compensation Committee

ChairmanSustainability &ERM Committee

CEO
Mobility Solution
Business Group

President

Smart Retail
Business GroupIntelligent Service
Business Group

Technology
Group

ManufacturingGroup

Display Strategy
Business Group

Chief of Antitrust
Compliance

Strategic Investment,
Merger & Acquisition

Energy BusinessGroup

Smart Healthcare
Business Group

Sustainability
Development

Auditing
Management

Supply Chain
Management
Globalization
Development Office

Smart Education& EnterpriseBusiness Group

ESH & Risk
Management

Solar &
Semiconductor
Material BU

Operational
Support Units

Board Diversity and Effectiveness Policy
Achieved
100%

Independent Directors
exceeding one-half of thetotal director seats

2023 ESG InsightAchieved
100%

Number of Directors who
concurrently serve as Company
managers do not exceed onethird of the total director seats

Achieved
100%

At least two seats of
Directors are females

14

Environmental

SocialGovernance

Board of Directors with Diverse Background
Seniority of the
Independent Director

Professional Knowledge and Skills

Name

Position

ShuangLang(Paul)
Peng

Chairman

Male

60-69

Frank Ko

Director

Male

50-59

DirectorFemale70-79

Director

Male

60-69

Independent
Director

Male

70-79

Independent
Director

Male

70-79

Female60-69

Female50-59

ChuangChuang
Tsai
Han-Chou
(Joe)
Huang
Chin-Bing(Philip)
Peng
Jang-Lin(John)
Chen
Chiu-Ling
Lu
Cathy
Han

Below 3~9 Exceed
3
years years 9 years

GenderIndependent
Director
Independent
Director

Age

Finance,
Corporate
Industry or Technology
Industrial Investments,
and Innovation
Technology Researchor Accounting Sustainability
Development

EmployeePosition*Note: Yen-Hsueh Su resigned since Dec 2023.

Remuneration Policies of the Board of Directors and Senior Management
The remuneration of AUO's senior manager is linked to the company's operational performance. The overall reward
composition consists of salary, short and long-term variable bonuses, and profit-sharing employee bonuses. Amongthese, variable bonuses are determined based on operational performance, accounting for 70% to 90% of the total
remuneration depending on position and performance. At the same time, the managers' long-term reward planis assessed over a three-year period, with stock rewards accounting for more than 50%, and includes clawback
provisions. The Remuneration Committee sets performance goals in line with the company's long-term development
strategy. In addition to financial indicators such as EBITDA, revenue, gross profit margin, and operating profit
margin of strategic products, and contribution to shareholders, it also incorporates ESG sustainability performanceand major theme management goals, deepening the connection with shareholder interests and fulfilling ourcommitment to sustainable management.

Functional Committees
Corporate Governance Committee
1. Establish standards for diverse backgrounds andindependence such as the professional knowledge,
technology, experience, and gender required by membersof the board of directors, and seek, review and nominate
director candidates.
2. Construct and develop the organizational structure of theboard of directors and committees, evaluate the performanceof the board of directors, committees and directors, andevaluate the independence of independent directors.
3. Develop and regularly review directors' training programs
and succession plans.
4. Establish the Company's corporate governance principles.

Remuneration Committee
1. Formulate and regularly review the policies, systems, standards
and structures of directors and senior managers' performance
evaluation and salary compensation.
2. Regularly evaluate and fix the salary and compensations of
directors and senior managers.

2023 ESG Insight

There were 4 meetings convened
in 2023 with 100% attendance
Position

Name

ConvenerPaul SL Peng

MemberChiu-Ling Lu

MemberCathy Han

MemberChin-Bing(Philip) Peng

MemberJang-Lin(John) Chen

MemberYen-Hsueh Su*

Independent
Director*Note: Resigned since Dec 2023

There were 4 meetings convened
in 2023 with 100% attendance
Position

Name

Independent
DirectorChin-Bing

Convener (Philip) Peng
MemberJang-Lin(John) Chen

MemberYen-Hsueh Su**Note: Resigned since Dec 2023

15

Environmental

GovernanceSocialThere were 6 meetings convened
in 2023 with 100% attendance

Audit Committee
1. Supervising and auditing the fair expression of the Company's
financial statements

Position

Name

Convener

Chin-Bing(Philip) Peng

4. Reviewing the transaction of the Company's acquisition
or disposal of assets, the lending of significant funds andendorsement or guarantee for others, and matters involving thedirector's own interests

MemberChiu-Ling Lu

MemberCathy Han

Member

5. Raising, issuing or private equity securities

Jang-Lin(John) Chen

MemberYen-Hsueh Su*

2. Monitoring and evaluating the effective implementation of theinternal control system
3. Supervising the Company's compliance with laws and regulations

6. Appointment, dismissal or remuneration of the accountants

Independent
Director*Note: Resigned since Dec 2023

Sustainability & ERM Committee
In response to global climate issues and net-zero carbon emissions trends, In
2024, the "ESG and Climate Committee" was upgraded to the "Sustainability
and ERM Committee," directly under the operation of the Board of
Directors. With net zero emissions by 2050 as the core objective to build thestrategic climate blueprint and plan forward active mitigation and adaptation
actions. The Committee takes on the carbon tasks of environment, society
and corporate governance, to develop low-carbon technologies, promote
carbon data applications, and deepen sustainable DNA efforts. Also,
the committee as the highest governance unit of risk management tosupervise and ensure enterprise risk management and operate effectively,by establishing an appropriate risk management mechanism and forming
a risk management culture. In 2023, there were 4 meetings convened for
Sustainability and ERM Executive Committee.

Position

Name

Independent
Director

Shuang-Convener Lang (Paul)
Peng

MemberJang-Lin(John)
Chen

MemberChiu-Ling
Lu

Board of Directors
Sustainability & ERM Committee

Secretariat CSO

Sustainability & ERM Executive Committee
Technology
Sustainability

Business
Sustainability

EnergySustainability

Manufacturing
Sustainability

Supply Chain
Sustainability

Corporate
Commitment

ESG
MissionTechnology
Application

Product Value

Affordable andClean Energy

Green
Manufacturing

Supply Chain
Co-prosperity

Citizenship

CarbonMissionCarbonTechnology

Carbon Business

EnergyDevelopment

Mitigation
Adaptation

Value Chain
Management

Education
Partnership

Risk
Governance

Stakeholders
Engagement

Risk
Management

Stakeholders
Management

Information Security Management Strategies & Development
AUO conducts various information security activities through the Information Security Committee, regularly
reviews the targets implementation of the year, and conducts risk improvements to protect the Company's
intellectual property, customer data and enhance employees' info-security awareness. The Company's Chairmanof the Board serves as the information security committee chairman, and the Company's Chief Digital Officer
acts as the info-security convener for the task execution team. In 2023, AUO set Chief Security Officer andInformation Security Management Office to strengthen information security governance and risk management.
Information Security Risk

High

Execution
Strategy &Action Plan

Low

2012

2013

2014

2015

2016

2017

2018

2019-2021

2022-2024

Improvement

Awareness

Education

SelfAccountability

Continual
Improvement

ISO
Certification

Intelligent
Analysis

Keep Data
Secureat All Times

Information
Security
Resilience
Management

One Data

Zero Trust

Behavior Management
Low

Source Management

Maturity of Information SecurityHigh

ISO 27001 Information Security Management System
2023 ESG Insight16

Environmental

GovernanceSocialIntegrity & Compliance
Rooted in a culture of integrity, AUO actively implements values of credibility and fairness and complies with theguidelines of the Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies.
Targeting the Board Directors, all employees, suppliers, contractors and other stakeholders, AUO strengthens the
advocacy to prevent bribery and corruption, giving unlawful political donations, inappropriate charity donationsor sponsorships, inappropriate gifts/hospitality or other illegitimate profits, violating intellectual property rights,
engaging in unfair competitions and products or services damaging the rights and interests of stakeholders.

Integrity Culture
Customers

Suppliers

Employees

Prohibition of “anticompetitive behavior,”
and adherence to theprinciples of the “Fair
Trade Act” and “AntiTrust compliance.”

Protection of the trade
secrets and informationin accordance withthe “confidentiality
agreements.”

Embraces an integrity
culture, set of guiding
principles, andstipulated benchmarks
for each dimension to
make sure all employees
understand and adhere
to the concept of
integrity.

• Adhere to the codeof conduct set
in the customer
requirements• Work proactively toensure compliancewith the inspection
standards set by thecustomer• Promote the principles

of honest trade andsigning of ”Integrityclause”• Inspection of andcounseling on integrity
business behavior• Conduct annual
communication on
integrity management
cases• Integrity policy,

management,
communication andvalue

AUO regularly inspects theintegrity department anddefines the list of integrity
positions for the departmentswith decisive influence on
the import/export, productprices, investment targets
and departments withfrequent contact with
suppliers, customers andcontractors. AUO implements
regular job rotation andbusiness substitution throughsystematic management toprevent corruption.

Ethics Training
100 % new employee
corporate ethics course andthe integrity declaration

Whistleblower Protection
The Company has established a Whistleblower System, and employees havebeen trained to report misconduct using this system. For external cases, any
illegal behavior in supply chain management can be reported directly to AUO
through corporate website using the "Violation of Ethical Behavior Reporting
System" (http://integrity.ab1.auo.com/), which will be followed by an internal
investigation and action.
When a breach of integrity or ethical conduct is found, the following channels
are all applicable for timely reports:• Internal: Direct managers, President Mailbox, Audit Committee Mailbox• External: Reporting System on Breach of Code of Ethical Conduct (http://
integrity.ab1.auo.com)
Once a case has been filed, investigations will be conducted by the Audit
Department, or by a special investigation committee formed based on the“Management Methods of the Material Disciplinary Investigation Committee.”

Non-Retaliation Policy
AUO does not tolerate
any retaliation against an
employee for making a reportin good faith. This includes
any type of adverse action
taken in response to a report,
including firing, transferring,
demoting or publicly
attacking someone. It also
includes even more subtle
forms of retaliation, such asleaving someone who makes
a good-faith report out ofprofessional activities.

Reported Whistle-blowing Cases Statistics
Reporting System for Violation of Ethical Conduct

2021

4

2

Audit Committee Mailbox

0

2022

17

2023

3

14
0

5

Whistle-Blowing Mailbox

4
10

15

7
2
20

25

30

Confirmed Cases of Unethical Violations: 1 case
*Note: System open for external report since 2022

2023 ESG Insight17

Environmental

SocialGovernanceRisk Management
Risk Management Policy
AUO has established the "Risk Management Policy and Procedures" in accordance with international risk
management guidelines. The AUO Sustainable and ERM Committee serves as the highest governing body,
responsible for overseeing the Risk Governance Team. This team is tasked with identifying and assessing risks,
including strategic, operational, financial, hazard, and emerging risks. Regular meetings are held to review diverse
risk monitoring indicators and evaluate the organization's capacity to respond to risks.

Risk Identification and Management

Risk Training

Risk
Monitoring

Risk Level
Classification

PDCA Cycle
Management

Focused Risk
Risk Type

Inflation and Economic
Recession that Lead to
Decrease in End Demand

Strategies• Deepen vertical markets under the dual-axis transformation goal, integrating

software, hardware, cloud, and service platforms to meet diverse applicationneeds in smart mobility, smart entertainment, smart healthcare, smart retail,and other fields.

• Establish measures and goals for sustainable supplier management.

Supply Chain Shortage• Collaborate with suppliers to build consensus and share resources.
• Build a climate-resilient supply chain.
• Strengthen factory equipment efficiency.

Electricity and Water Lackage• Establish a smart platform for water management.
• Monitor changes in electricity consumption.

Climate Change• Using the TCFD as a guide to prepare for related risk.
• Respond to the demands of green products of the market.

Emerging Risk
Risk Type

Strategies• Align with AUO's dual-axis transformation and strategy and implement a

Geopolitics Risk

decentralized manufacturing base and investment layout.

• Initiate geopolitical pre-response projects and dynamically assess global risk

situations, especially in regions with high operational relevance.

Talent Shortage
Cyber andInformation Security

2023 ESG Insight• Continuously promote the "ESG-TALENT" strategy to foster sustainable talent.
• The Information Security Committee implements information security

management to protect company intellectual property, customer data, andenhance employee awareness of information security.

18