Responsible Investment and Stewardship
Uni-President Asset Management voluntarily adheres to the United Nations Principles for Responsible Investment (PRI). In accordance with the ESG Investment Management Guidelines approved by the Board of Directors, the Company has established a responsible investment framework centered on “analysis, decision-making, execution, and review and monitoring.” The Company systematically integrates environmental (E), social (S), and governance (G) factors into research and analysis, investment decision-making, and risk management processes. This enables the effective identification of sustainability-related risks and opportunities, the establishment of consistent and concrete sustainability assessment and risk management mechanisms, and ultimately the enhancement of the long-term value of investment portfolios, thereby achieving the management objectives of responsible investment.
To fulfill shareholder responsibilities as an institutional investor, Uni-President Asset Management has signed the Stewardship Principles for Institutional Investors and established a Voting Policy to implement stewardship principles in post-investment management operations. The Company engages in continuous communication with investee companies through engagement activities and the exercise of shareholder voting rights to promote their sustainable development in the areas of corporate governance, the environment, and society. The Company discloses its Stewardship Report annually in the “Stewardship Section” of its official website and publishes records of engagement activities and shareholder meeting voting results to enhance information transparency and meet the expectations of stakeholders.
Incorporating ESG Assessments into the Investment Process
Analysis | Developing an ESG Assessment Framework
During the investment analysis phase, Uni-President Assets Management integrates data from multiple sources to establish a systematic ESG analysis framework, ensuring that investment decisions are based on a comprehensive information foundation and are objective. The analysis encompasses third-party data, publicly available corporate information, and internal research findings. Through a cross-verification mechanism, the Company minimizes information bias and mitigates the risk of greenwashing.
Regarding the use of third-party data, the Company references data from domestic and international rating and research institutions, including ratings compiled by BlueOnion, Bloomberg, TEJ, and the ESG IR platform, as key references for ESG performance and risk assessments. At the same time, the Company reviews publicly disclosed corporate sustainability reports, climate reports, information from the Market Observation Post System, and investor conference materials to understand companies’ strategies for addressing material sustainability issues and their risk management practices.
In addition to considering external data, the investment research team also conducts trend data research, fundamental analysis, and interviews, while incorporating key factors such as carbon emissions data, disclosure completeness, negative news events, and governance and ownership disputes to gain a deep understanding of corporate governance, business strategies, and related sustainability practices. The overall analysis process does not rely on a single data source, but instead adopts cross-verification through multiple channels to serve as the foundation for subsequent investment decision-making and post-investment management.
Decision-Making | Investment Decision-Making and Risk Management Mechanisms
In the decision-making process, in addition to considering financial indicators and the results of fundamental analysis, we incorporate environmental, social, and corporate governance factors into the investment processes for various asset classes through an integrated ESG investment strategy. These factors serve as key criteria for selecting, holding, or adjusting the allocation of investment targets.
For investment targets with relatively high ESG risks or controversial issues, the Company has established risk management mechanisms. We set corresponding investment ratio control principles within the overall portfolio to avoid excessive risk concentration and ensure that investment activities align with responsible investment principles and the long-term interests of beneficiaries.
For investment targets with potential positive impact, the Company, during the decision-making process, assesses whether the investee company’s products, services, or operational activities can generate verifiable positive impacts on issues such as climate change adaptation and mitigation, resource efficiency enhancement, and social inclusion. If these criteria are met, the Company will prioritize allocation or moderately increase the shareholding ratio, provided that the balance of risk-adjusted returns is maintained.
Execution | Investment Operations, Engagement Activities, and Shareholder Voting
During the investment execution phase, the Company allocates, adjusts, and manages investment portfolios based on the investment intentions formed during the analysis and decision-making phases, and continuously monitors the sustainability performance of investee companies through stewardship mechanisms.
Regarding engagement activities, Uni-President Asset Management focuses on three core issues: capital allocation, sustainability performance, and financial metrics. Depending on the nature of the issue, we employ either individual or joint engagement approaches to enhance the impact of communication. During the engagement process, we also require investee companies to propose specific, measurable, and trackable improvement measures or implementation outcomes, which serve as the basis for subsequent evaluation and monitoring.
Furthermore, the Company exercises voting rights in accordance with the Voting Policy and actively participates in the shareholders’ meetings of investee companies. We evaluate key proposals prior to the meetings and use the voting mechanism to monitor the implementation of corporate governance and ESG issues, thereby promoting the companies’ development toward sustainable operations.
Engagement Action
The Company regards engagement activities as the core of its responsible investment process. At every stage from pre-investment analysis to post-investment management, we maintain close interaction with investee companies through diverse communication and engagement mechanisms to monitor their sustainability performance, enhance the effectiveness of engagement, and jointly create long-term value.
| Process Stage | Description |
|---|---|
| 1. Sustainability Performance Assessment | In the investment research and management process, we integrate financial performance, industry overviews, and business strategies, while incorporating sustainability information such as climate change, social responsibility, and corporate governance to assess the current operational status, ESG performance, and long-term growth potential of investee companies. |
| 2. Identifying Engagement Needs | By referencing data from domestic and international rating and research institutions, including ratings compiled by BlueOnion, Bloomberg, TEJ, and the ESG IR platform, as well as publicly disclosed company information, we identify investee companies with relatively lagging ESG performance, higher governance risks, or significant sustainability issues as engagement targets. |
| 3. Developing Engagement Plans | After identifying engagement targets, we plan engagement topics, objectives, communication methods, and participating personnel. Engagement topics cover environmental, social, and governance aspects. We also adopt either individual or joint engagement approaches depending on the specific characteristics of each case. |
| 4. Implementing Engagement | We communicate and engage with investee companies in accordance with the engagement plan to gain a deeper understanding of their strategies and implementation regarding sustainability issues, and to establish specific directions for improvement |
| 5. Monitoring and Refinement | In addition to regular quarterly engagement, we monitor investee companies’ responses and progress on engagement issues through ongoing reviews of public information and follow-up communications. This serves as a reference for future investment decisionmaking and adjustments to engagement strategies. |
Voting Policy and Implementation
Uni-President Asset Management has established relevant operational principles in accordance with the Voting Policy. When managing securities investment trust funds, the Company adheres to the regulations of the competent authorities and prioritizes the best interests of beneficiaries. It takes corporate governance and sustainability impacts into consideration, prudently exercising voting rights at the shareholders’ meetings of investee companies. The Company explicitly prohibits direct or indirect involvement in the operational decision-making of investee companies to safeguard the independence and impartiality of voting decisions.
In practice, the Company adheres to the stewardship principle. Each year, we attend some in-person shareholders’ meetings and fully utilize electronic voting to exercise voting rights at shareholders’ meetings. All proposals are voted on only after careful evaluation by a professional team, so as to enhance voting participation and operational efficiency, while safeguarding the long-term investment value of beneficiaries.
| Process Stage | Description |
|---|---|
| 1. Identification of Shareholders’ Meeting Resolutions | Review shareholders’ meeting proposals of investee companies |
| 2. Verification of Information Completeness | Review whether resolution information is sufficient and communicate with the investee company as necessary |
| 3. Classification of Resolution Types | Categorize resolutions as routine or material |
| 4. In-Depth Assessment of Material Proposals | Incorporate ESG materiality considerations into the assessment of material resolutions, with reference to international standards and internal guidelines |
| 5. Formulation and Execution of Voting Decisions | Exercise voting rights via electronic voting following internal discussions |
| 6. Post-Voting Follow-Up and Engagement | Continuously monitor implementation, and initiate follow-up engagement and communication for those that fall short of expectations |
Evaluation and Communication of Shareholders’ Meeting Resolutions
| Item | Content |
|---|---|
| 1. Resolution Evaluation Procedures and Communication Mechanisms | Prior to exercising voting rights, we will properly maintain relevant information and, depending on the nature of the resolution and as needed, communicate with and seek input from the management of investee companies prior to the shareholders’ meeting. The results are used as a key reference for voting decisions. |
| 2. Criteria for Communicating on Sustainability Resolutions | If a resolution involves sustainability principles such as the environment, labor, human rights, corporate governance, risk management, or financial transparency, and may impact the long-term value of the investee company, the Company will engage in thorough communication with management prior to the shareholders’ meeting to ensure that sustainability issues are properly considered. |
| 3. Voting Principles | Voting decisions are based on independent assessments, categorized as support, opposition, or abstention. In principle, we support resolutions that are transparent and free of significant controversy; however, if a resolution involves significant governance or ESG risks, we will vote against it or abstain from voting, and may continue to engage and monitor the matter post-vote as appropriate. |
In 2025, the Company participated in 2,834 shareholders’ meeting resolutions at 189 domestic investee companies. According to the voting results, 2,824 resolutions were approved and 10 were opposed. There were no abstentions. For detailed case-by-case disclosures of voting results and reasons for opposition, please refer to the “Stewardship Section” on Uni-President Asset Management’s official website.。
Review and Monitoring | Continuous Monitoring and Performance Evaluation
During the post-investment management phase, Uni-President Asset Management has established mechanisms for continuous monitoring and periodic reviews to track the operational outlook, industry trends, and ESG performance of investee companies. Through daily monitoring mechanisms and periodic reviews of high-risk investment portfolios, the Company assesses the allocation of ESG risk positions. If the shareholding ratio of high-risk targets reaches the internal threshold for attention, the relevant departments must provide an explanation and evaluate follow-up management measures.
Concurrently, the Company tracks the effectiveness of engagement actions, reviews the progress of improvements made by past engagement targets, and focuses on representative cases to assess whether commitments and actual actions have been implemented. The results of these assessments serve as an important reference for future investment decisions, adjustments to engagement strategies, and the refinement of responsible investment practices.
Current Status of ESG Investments
Uni-President Asset Management regularly reviews the sustainability performance of investment portfolios through established investment management processes. The relevant performance results are as follows.
Domestic Active Equity Funds
The Company incorporates ESG factors into its investment research, target selection, and post-investment management processes as important references for investment management and risk control. For potential investment targets, we conduct ESG assessments and prudently exclude cases involving significant controversies or inadequate sustainability performance. For existing holdings, we continuously monitor their sustainability performance and evolving risks through regular risk assessments, tracking of major events, engagement with companies, and voting at shareholders’ meetings. As of the end of 2025, 98.96% of the individual stocks in the Taiwan equity portfolio complied with the Company’s responsible investment guidelines. This reflects the stable operation of the aforementioned methodology and stewardship mechanisms, demonstrating not only the Company’s commitment to long-term value creation, but also its expanded positive impact on the market and society.
Sustainability-Themed Investments
In response to the national net-zero transition policy and with reference to the “12 Key Strategies” under “Taiwan’s Pathway to Net-Zero Emissions in 2050,” the Company has integrated sustainability considerations into its investment and asset management processes, and guides investee companies in addressing transition-related issues through engagement mechanisms. As of the end of 2025, related investment positions accounted for 65.15% of the total portfolio, with a focus on “Carbon Sinks” (37.30%), “Green Lifestyle” (20.25%), and “Hydrogen” (15.57%). Through resource allocation and the exercise of financial influence, we actively support industrial green transition and lowcarbon development to address the challenges arising from climate change and promote the creation of long-term sustainable value.
Engagement with Investee Companies
In 2025, Uni-President Asset Management actively engaged with investee companies (including those in high-climate-risk industries and industries undergoing transition) from the perspectives of forward-looking governance and transition finance. Engagement took the form of both independent and joint initiatives to guide investee companies in strengthening their sustainability governance and transition efforts. Engagement focused on key transition issues, including low-carbon and circular economy technologies under the “Enabling Activities” category of the Reference Guidelines for the Recognition of Sustainable Economic Activities, climate decarbonization pathways, supply chain ESG management, strengthening of sustainable governance, and circular economy practices, to facilitate the gradual implementation of these initiatives by investee companies from the strategic level to concrete actions.
In 2025, the number of investee companies engaged in communication and interaction reached 1,441. Among these, engagement on environmental, social, governance, and other sustainability-related topics was conducted with 8 companies, achieving a 100% completion rate.
| Category | Engaged Companies (Total Number of Companies) | Engagements with Companies (Number of Engagements) | On-Site Visits and Guidance Meetings (Number of Engagements) | Telephone or Video Conferences (Number of Engagements) | E-mail Communications (Number of Engagements) | Attendance at Shareholders’ Meetings (Number of Engagements) | Participation in Investor Conferences (Number of Engagements) |
|---|---|---|---|---|---|---|---|
| ESG Topics | 8 | 8 | 0 | 7 | 1 | - | - |
| TotalNote | 1,179 | 5,934 | 2,990 | 1,821 | 1 | 189 | 933 |
Note: Includes routine visits to investees, as well as communication and interaction through attendance at shareholders’ meetings and investor conferences.
| Engagement Topic Category | Engagement Topics |
|---|---|
| E（Environmental） |
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| S（Social） |
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| G（Governance） |
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Sustainable Investment and Engagement under the Reference Guidelines for the Recognition of Sustainable Economic Activities
In investment and asset management operations, the Company utilizes engagement mechanisms to assist investee companies in assessing whether their business activities fall under the scope of the Reference Guidelines for the Recognition of Sustainable Economic Activities. We encourage investee companies to conduct voluntary assessments and disclosures based on their actual circumstances, thereby enhancing the market’s ability to recognize their substantive contributions to sustainability.
Given that the Guidelines currently cover only certain industries and economic activities with clear technical screening criteria, primarily focusing on actions that make a substantive contribution to climate change mitigation or adaptation, a company’s exclusion from the scope of the Guidelines does not imply noncompliance with sustainability principles. Companies may still demonstrate their sustainability value through initiatives such as enhancing corporate governance, fulfilling social responsibilities, or promoting industry transition.
Taking the 8 investee companies engaged in 2025 as an example, their applicability and disclosure status varied, reflecting differences in industry characteristics and assessment progress. Considering that the disclosure of the “proportion of sustainable economic activities” remains highly dependent on consistent and verifiable corporate data, and that most companies are still in the process of building such capabilities, the Company adopts a phased approach. We prioritize engagement with target companies, continuously compile and disclose assessment results, and promote inventory quality and information transparency through deepened engagement, thereby fulfilling the guiding role of financial institutions within the sustainability classification system.
The applicability/compliance status of investment positions disclosed with reference to the Reference Guidelines for the Recognition of Sustainable Economic Activities is as follows:
| Applicable percentage | 1.4968% |
| Compliant percentage | 1.4968% |
| Compliance/ applicability ratio | 99.73% |
Note: The Reference Guidelines for the Recognition of Sustainable Economic Activities do not cover all domestic industries and economic activities, nor are the identification methods under the Guidelines applicable to all industries and economic activities. If the economic activities engaged in by a company are not applicable under the Guidelines, this does not imply that the company is not sustainable.
Regarding the 8 companies engaged this year, whether they are investee companies that fall under the scope of the Reference Guidelines for the Recognition of Sustainable Economic Activities but have not yet met the “compliant” standard, or investee companies to which the Guidelines are “not applicable,” the Company has incorporated the Guidelines’ framework into the engagement process to help them identify gaps and plan improvement directions. We also encourage investee companies to develop concrete climate change response and transition plans to guide them in progressively enhancing their sustainability practices. The relevant engagement outcomes are as follows:
| Engagement Sscenario | Applicable to the Reference Guidelines for the Recognition of Sustainable Economic Activities but not yet meeting the “compliant” standard | “Not applicable” to the Reference Guidelines for the Recognition of Sustainable Economic Activities |
| Engagement category | Environmental (E): | Environmental (E): |
| Engagement topic | Circular economy transition pathways | Carbon disclosure quality |
| Eengagement content | Discussed with the company how to meet the recognition thresholds for circular economy transition under the Reference Guidelines for the Recognition of Sustainable Economic Activities | Discussed with the companies how to improve the quality of carbon disclosure, expand the scope of carbon emissions disclosure, and enhance carbon reduction strategies |
| Follow-up and impacts | Following the engagement, Company A clearly demonstrated its direction for transition, gradually shifting its waste management practices from traditional disposal methods toward a model centered on reuse and material recovery, and integrating these practices into its value chain operations. At the same time, relevant reuse operations have been conducted in accordance with statutory regulations set by the competent authorities, ensuring that its circular practices have a foundation of compliance and environmental benefits, indicating that the company is moving toward the reuse standards outlined in the Guidelines. | Most investee companies have adopted proactive measures, such as introducing ISO 14001 and undergoing annual thirdparty audits, implementing internal carbon pricing and establishing carbon funds, or incorporating emissions from affiliated companies into the group-wide inventory. |
In summary, for investee companies still in the early stages of transition, the Company utilizes engagement mechanisms to focus on three key areas: regulatory compliance, technological upgrades, and long-term transition planning, to help them progress from “partial implementation” to “full compliance,” rather than merely issuing risk warnings or excluding them. Through active investment participation and engagement actions, the Company not only guides investee companies in driving substantive sustainability transitions, but also helps support the long-term value of the investment portfolio. For more corporate case studies, please refer to the Uni-President Asset Management Institutional Investor’s Stewardship Report.