Cathay FHC engages with stakeholders in accordance with the four fundamental principles outlined in AA1000 Stakeholder Engagement Standard (AA1000 SES): Materiality, Inclusivity, Responsiveness, and Impact. In the meantime, we identified nine major stakeholder groups with our sustainability blueprint designed to hone in on our sustainability strategies. We subsequently compiled the "Cathay FHC Stakeholder Engagement Strategies" to listen to, understand, and respond to stakeholder voices and concerns through multiple channels/mechanisms. We aim to establish mutual benefit and trust through continued communication and engagement.

To ensure all material issues are enforced, the Cathay FHC CS Committee regularly reviews material issues and target setting, reporting stakeholder engagement to the Board of Directors annually.

Cathay Financial Holdings clearly stipulates in the "Policy and Code of Operation Integrity" and the "Code of Conduct" that participation in public affairs should be conducted legally, and all donations should be disclosed truthfully and in accordance with the law. With the rapid development of digital financial technology, the financial industry faces competition not only from the technology sector and e-commerce platforms but also must address various emerging risks, such as population aging and climate change. By participating in affairs of associations and guilds, Cathay aims to foster industry consensus and contribute to industry development.

Meanwhile, Cathay is an active participating member in associations over the years. Cathay FHC President Chang-Ken Lee is the current director of the Bankers Association of Taipei. President of Cathay Life, Shan-Chi Liu, is the current Managing Supervisor of the Life Insurance Association of the Republic of China. Participation in key associations is a part of Cathay's effort to facilitate stronger collaboration between the industry and the government by formulating the relevant policies that will further the development of the financial sector.