To strengthen corporate sustainability governance, Arcadyan established the CSR Committee in 2016 and upgraded it in 2020 to the Sustainability Development Committee, reporting directly to the Board of Directors. Chaired by the President and composed of senior cross departmental executives, the committee formulates sustainability strategies and mediumto long-term plans. In May 2022, the Board approved the "Sustainability Development Committee Charter", defining it as a cross-functional communication platform responsible for:
- Formulate sustainability development policies.
- Plan annual strategic directions and action plans.
- Track and review sustainability performance, and report to the Board of Directors.
- Resolve other major sustainability-related matters.
The Arcadyan Board of Directors regularly receives execution reports from the Sustainability Development Committee. It oversees the Company's sustainability strategies, material issues, and annual action plans, ensuring alignment with overall business strategy. In 2025, Arcadyan held three Sustainability Development Committee meetings with 100% attendance. The Chairperson reported sustainability progress and future plans to the Board, underscoring the Board's strong commitment to sustainability governance. The Company also set up the Sustainability Development Office to coordinate cross-departmental efforts, track progress, and report key metrics to the Committee and Board.
The major matters reviewed and approved by the 2025 Sustainability Development Committee are as follows:
- Approval of the 2025 sustainability material topics, development targets, and annual action plans.
- Approval of the 2024 Sustainability Report.
- Approval of the amendments to the "Sustainability Practices Code."
Starting in 2024, Arcadyan has integrated sustainability-related indicators into the performance targets of executive management. Linking executive compensation with sustainability performance aims to encourage leaders to prioritize corporate sustainability goals. Arcadyan evaluates the involvement and contributions of executive management to company operations and reviews the compensation system in response to external factors and regulatory changes. The President determines the allocation of executive compensation based on the achievement of performance targets and reports to the Chairman. Final decisions are made by the Remuneration Committee and the Board of Directors.
The performance target allocation for Arcadyan’s executive management is as follows:
Internal Control and Audit Execution Status for Sustainability Information Preparation
To ensure the accuracy, completeness, and reliability of sustainability information, Arcadyan incorporated sustainability information management into its internal control system in 2024, establishing the "Sustainability Report Preparation and Verification Procedures" and "Sustainability Information Management Procedures" to govern the collection, preparation, review, verification, and disclosure of such information. The Sustainability Report is compiled and prepared by the cross-departmental "Sustainability Report Preparation Team," reviewed initially by department heads and consolidated by the Sustainability Development Office, then externally assured by an independent third party, and finally disclosed after approval by the Sustainability Development Committee and the Board of Directors.
Arcadyan also regularly performs internal control self-assessments and audits, covering applicable regulations, materiality assessment, information management and disclosure, third-party assurer competence, personnel handover, and disclosure approval. The 2025 audit found all controls effectively implemented, with no material deficiencies.