To ensure sustainable operations, Nan Shan Life established its corporate governance structure based on the principles of safeguarding the rights of shareholders, strengthening the functions of the Board of Directors, enhancing information transparency, emphasizing discipline and communication among management level, maintaining solvency, protecting the rights of policyholders, and safeguarding the rights and interests of stakeholders to maintain the long-term interests of the company and its shareholders.
In 2023, Nan Shan Life continued to update and optimize its internal regulations related to corporate governance, which would serve as a solid foundation for the Company to practice its corporate governance. In accordance with the “Corporate Governance Best Practice Principles for Insurance Companies”, Nan Shan life has established its “Corporate Governance Guidelines” based on internal rules and regulations an business needs, with the aim to continuously improve its performance of corporate governance and sustainable development.

To optimize the supervisory function of the Board of Directors, Nan Shan Life has six functional committees under the Board of Directors; namely, the audit committee, the remuneration committee, the quality supervision committee, the treating customers fairly promotion committee, the risk management committee, and the corporate sustainability committee.

To enhance the Board’s sustainable governance capabilities, Board directors constantly participate in external professional courses and seminars. In 2023, directors attended training programs for a total of 154.5 hours, which was, on average, 11 hours of training per director. The subjects of the training courses covered fields of risk management, corporate governance, ESG and corporate social responsibilities, TCFD, prevention of money laundering and counter-terrorism financing, the impact of IFRS17 on the operational strategies of insurance companies, the principles of fair customer treatment and integrity management in establishing agreements, etc. All the 14 directors were communicated with and trained on integrity management, with 100% attendance rate.
In response to the competent authority’s policy of enhancing performance evaluation of board directors of insurance companies, Nan Shan Life conducts directors’ self-evaluations and peer-evaluations every year in accordance with Article 40-1 of the “Corporate Governance Best Practice Principles for Insurance Companies”. The evaluation items include the degree of participation in the guidance and supervision of the Company's business strategy, significant business, risk management, legal compliance, and other relevant aspects. In 2023, all the 14 directors participated in the evaluations, with 15 items rated as “outstanding”. The average score for self-evaluations was 98, and the average score for the overall evaluations was 99, which were both rated as “outstanding”. The results of the evaluations were also reported to the Board.

Nan Shan Life’s Corporate Sustainability Committee is a functional committee established under the Board. The Chairman of the Board acts as the committee meeting convener, and independent directors serve as committee members to supervise the Company’s sustainability issues. The main tasks of the committee include implementing ESG decisions, and reviewing and approving annual corporate sustainability goals. To enhance the committee’s functions, committee meetings are held quarterly from 2024, and the Company’s performance of sustainable development is reported to the Board semiannually.
To continuously safeguard the rights and interests of stakeholders while pursuing sustainable development and profitability, Nan Shan Life attaches great importance to the ESG performance and has integrated ESG practices into its management and operation activities. Under Nan Shan Life’s Corporate Sustainability Committee, there are seven corporate sustainability executive teams in charge of different ESG aspects, including the “Responsible Investment Team”, the “Corporate Governance Team”, the “Customer Care Team”, the “Employee Welfare Team”, the “Community Participation Team”, the “Environmental Conservation Team”, and the “Agent Relationship Team”, which are led by the President. These teams are dedicated to monitoring and executing the planning, implementation and tracking of ESG aspects and issues in accordance with the principle of materiality. These teams also use multiple communication channels such as the Company's website to understand the legitimate expectations and needs of stakeholders, respond appropriately to their key sustainability concerns, and report relevant performance to the Corporate Sustainability Committee on a quarterly basis.

Nan Shan Life has implemented relevant policy commitments to satisfy our corporate social responsibility and Integrity Management and protect the rights and interests of our stakeholders. As a solid foundation for the company to promote governance, we should pay attention to do mes tic and international regulations and development, and review, amend, maintain, and update policies and promotional measures accordingly.
To strengthen integrity management in the corporation, in addition to formulating relevant policies in accordance with the laws and regulations, Nan Shan Life Board of Directors set an example for the management team, to educate and pass on the corporate culture of integrity man age ment. Through the “Code of Conduct for Directors” and strict management mechanism and control, the company aims to minimize risks associated with integrity.

Nan Shan Life stipulated the “Code of Conduct for Employees”. This document standardizes the responsibilities and obligations of employees and defines the standards of acts and regulations and internal policies to be observed in the work. The standard items of the employee code of conduct include customer relationship and rights protection; fair transaction; respect for and protection of intellectual property rights; money laundering prevention; equal opportunity and prohibition of discrimination; workplace environment maintenance; employee health and safety; confidentiality; company reputation maintenance; legal compliance; gifts, bribery or improper interests; reporting of illegal or prohibited actions; prevention of conflicts of interest; and other key issues of employee compliance.
In 2023, 100% of employees attended the training on code of conduct, with a total of 4,548 participants. There were no corruption-related cases at Nan Shan Life in 2023.

Nan Shan Life complies with laws and regulations and has established various strict internal audit and control measures and related management measures. The Company's "Regulations on Handling of Whistleblowing Cases" stipulates the procedures for receiving, internal reporting and investigation of prosecution cases. Anyone who discovers that an employee, manager or director has committed a crime, fraud or violated the law in the performance of his or her duties may report the case to the Compliance Department, the responsible unit of Whistleblowing through the following channels:

Anonymous complaints with content which is clear and specific and provides solid evidence will still be accepted and handled by the responsible unit. Valid cases evaluated by the reports team will be sent to the Investigation Team for analysis, and the investigation reports will be reviewed by the Verification Committee. Accusations brought against company directors or positions equivalent to vice president or above should be further reviewed by the Audit Committee. If cases fall outside the scope of Prosecution matters, the responsible unit handling the report will assess whether it should follow other appreciate procedures or be handled by other departments.

Nan Shan Life acts in accordance with the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies, Taiwan Intellectual Property Management System (TIPS) announced by the Ministry of Economic Affairs, and other relevant regulations to create Intellectual Property Management Measures. This helps create complete management systems for acquiring, protecting, maintaining, and using patents, trademarks, copyright, trade secrets, and related intellectual property. The implementation of the Intellectual Property Management Measures is subject to annual internal audits to ensure effective creation, protection, and management of intellectual property when strengthening digital finance innovation and enhancing the company's competitive advantage within the financial market.
Nan Shan Life holds training courses on intellectual property protection each year. This enhances our employees’ concept of intellectual property, teaching them how to protect our intellectual property and respect that of others.