Message from the Chairperson

The world continued to face sustainability crises such as climate anomalies, food crises, and energy crises in 2023. The government responded to the threat of climate change by amending the “Greenhouse Gas Reduction and Management Act” and renaming it as the “Climate Change Response Act” in February 2023. A section dedicated to climate change adaptation was added and the achievement of GHG net-zero emissions by 2050 was explicitly stated. The changes reflected the government’s commitment to GHG reduction and spurred private sector participation. The “ESG Sustainable Development Action Plan for TWSE and TPEx Listed Companies” was subsequently issued by the Financial Supervision Committee (FSC) on March 28, 2023, to promote the setting of carbon reduction targets, strategies, and substantive action plans by listed companies. In August 2023, the FSC also introduced three-stage plan for the adoption of IFRS Sustainability Disclosure Standards by listed companies from the 2026 fiscal year onwards. Local companies are continuing to promote sustainable development and commit to net-zero- emissions under the guidance of government policy. The quality of sustainability disclosures is also being strengthened so that all stakeholders can monitor and invest in sustainability-related topics together. Mega Holdings, the parent company of Mega Securities, joined the Coalition of Movers and Shakers on Sustainable Finance in December 2023 to lend its support to the national net-zero transformation.

Mega Securities has aligned itself with the sustainability policy of Mega Holdings by embracing the values of “respect and inclusion”, “professionalism and trust”, and “integrity and accountability” for developing a business model focusing on sustainable finance that balances economic growth with environmental protection. UN Sustainable Development Goals can also be integrated into the sustainable management goals of Mega Securities to make the most of our financial influence. We are keenly aware of the need for collective consensus and resources to be built from the top-down to promote sustainability. For this reason, the company unit responsible for promotion of sustainability was upgraded from the “Sustainable Development Task Force” to the “Sustainable Development Committee” reporting directly to the Board of Directors in June 2023. The Board of Directors is therefore the top governance and decision-making body for promotion of sustainability in the Company. The Sustainable Development Committee is chaired by the Director and General Manager, and the Committee Members are made up of the heads of each department. The Committee is responsible planning the sustainability goals and action plans of the Company, embedding sustainability into everyday operations, and raising the sustainability awareness of every colleagues so that they take actions that come from the heart.

Committing to Net-zero Emissions to Achieve Environmental Sustainability

Environmental changes and the increasing severity of global warming means accelerating the pace of net-zero sustainability is more critical than ever. The Mega Group assigns great importance to global climate change and net-zero transition topics. Our Science-Based Targets (SBT) commitment was submitted at the end of 2023 and approved in June 2024. A carbon reduction roadmap has now been set in accordance with SBT methodology in a bid to realize the goal of net-zero emissions before 2050. Mega Securities is continuing to promote systemic carbon reduction measures such as both “ISO 14001 Environmental Management Systems” and “ISO 50001 Energy Management Systems” certification as well as the Diamond-class Green Building” award “for our Headquarters building. The ratio of green electricity is also being increased every year to fulfill our pledge on environmental sustainability.

Improving Digital Technology to Promote Sustainable Finance

Mega Securities is actively embracing digital transformation in response to customer requirements in the age of digital finance. Financial technology is integrated into different service scenarios to implement inclusive finance by developing financial products or services suitable for the younger and older generations. “Mega eStock” for example allows investors to select investment objects based on different wealth management needs and easily build up their portfolios through regular savings plan, dollar cost averaging, scheduled buys and other methods. In 2023, Mega Securities was ranked in the top 25% of large integrated securities firms by the FSC in its 2023 Assessment of the Implementation of Treating Customers Fairly Principles for the third consecutive year, making us the only large securities firms to make the cut for the third time. Additionally, Mega Securities incorporated ESG factors into the decision-making investment and issue of financial products to exert a positive influence through our core financial operations. In 2023, we underwrote the issue of NT$2.15 billion in sustainable bonds, our balance from domestic and overseas investments in sustainable bonds was $3.045 billion, and we issued the “Mega TPEx FactSet Semiconductor Climate Net Zero Elite Total Return Index ETN.” This was the first climate-based ETN in Taiwan and it channeled funds from the market into sustainable developments to help businesses respond to the risks an opportunities of climate change. In 2023, Mega Securities was included in the TWSE “List of Companies with Better Institutional Investor Stewardship Disclosures.” Our recognition by TWSE for three consecutive years demonstrated our alignment with the spirit of institutional investor stewardship principles.

Strengthening Talent Development and Implement Employee Care

Talent has always been valued at Mega Securities. We not only pay attention to the welfare and development of employees but also strive to build a friendly, happy and safe working environment. Mega Securities obtained “ISO 45001 Occupational health and safety management system” certification in February 2023. Knowing that the building of a safe, health and friendly workplace environment is the responsibility of the management team, we treat every employee with respect and provide them with a safe, healthy and LOHAS working environment through talent cultivation, employee welfare, and employee care. These included education and training for developing different competencies, better-than-statutory employee health exam packages and benefits, continuing to organize Employee Assistance Programs (EAP), as well as using internal employee bulletin boards, regular labor-management meetings, and employee engagement surveys to maintain constructive channels for labor-management communications and mutual create a happy enterprise.

Greater Financial Inclusion for Mutual Prosperity in the Society

Mega Securities combined our core operations and annual ESG targets on social engagement to launch the “Mega Brings Light to Remote Areas.” To promote financial literacy among students in junior high school and below, the “Financial Literacy Charity Library”, the first library in Taiwan dedicated to financial literacy, was established at Hengshan Junior High School in Hsinchu in 2022. The second “Financial Literacy Charity Library” was established at Datong Elementary School in Tainan City in 2023. Three financial literacy workshops were also organized for elementary and junior high school teachers; for students in senior high school and above, the first “Everything, Everywhere All at Mega Securities” one-day corporate tour was held in 2023. Current junior high school and university students were invited to take part in an one-day financial workshop. For university students and above, we continued to host financial seminars and promoted financial literacy through industry-academia collaboration and internship programs. We also took part in various volunteer activities such as tree planting, coastal clean-up, and supporting charities as part of the Mega Group so that “Mega Brings Light to Remote Areas” can continue to light up every corner of society.

Adhering to Ethical Standards to Practice Corporate Governance

Mega Securities enforces the value of “Integrity and accountability” by emphasizing ethical operations, compliance, anti-money laundering, and risk management. An open and transparent governance system was established through the professionalism, diversity, and independence of the Board as well as enforcing management accountability. The Ethical Corporate Management Committee reporting directly to the Board of Directors was established to formulate the Company’s rules and policies on integrity. Compliance and governance are enforced through three lines of defense. Thanks to the comprehensive risk management mechanism at Mega Securities, we have been rated as a Class 1 (excellent) securities dealer twice in a row by the Taipei Exchange in its risk management evaluation since 2019. We also won the National First Prize in the Outstanding Enterprise category of the National Brand Yushan Award in 2023.

Lighting Up the Future for a Richer Life

Sustainability is our common goal and the future that we strive together for. Mega Securities will continue to provide the wealth management services and products required to support the lifestyles of different age groups in the sustainable finance aspect, and continue to channel funds towards sustainable development. In terms of environmental sustainability, we will continue to promote net zero and carbon reduction action plans, and encourage our customers to join the net-zero initiative. We can then work together to make changes in our business activities and everyday for a better future. In terms of social sustainability, we will combine our core expertise and everyday operations to continue encouraging proactive social engagement by every employees. This will not only enrich their lives but also exert a positive influence on society. Through ESG sustainability action, we can “Light Up the Future for a Richer Life.”

Chairperson of Mega Securities Co., Ltd. Chen Pei-Chun