In order to ensure every employees are treated equally in all aspects, TCFHC has complied with relevant regulations of “Universal Declaration of Human Rights”, “United Nations Global Compact”, and “International Labor Convention”. We formulate “Human Rights Policy” to express the determination of maintaining and guarding basic human rights as well as to shoulder the responsibility of respecting and protecting human rights. The president signs a human rights statement on behalf of all employees, declaring that the Company supports and abides by the human rights policy.

In addition, the TCFHC also abides by local labor-related regulations and the “Act of Gender Equality in Employment” wherever the operation is located. The Company implements the same pay for the same work and avoids the occurrence of differentiated treatments due to different gender or sexual orientation or any form of discrimination so as to ensure diversity and fairness in the workplace.

The TCFHC Group adopts a zero-tolerance attitude towards both sexual and non-sexual harassment. We have set up a well-communicated channel and measures for prevention of and making appeals on sexual harassment, which include an independent investigation mechanism to protect the rights and privacy of the victim. We arrange education and training courses on gender equality and human rights for employees every year. For supervisors, management training courses focusing on internal management and handling of grievances are provided to improve their ability to communicate with employees.

In 2021, TCFHC Group did not receive any human rights-related complaints such as sexual harassment, employing child labor, gender or sexual orientation discrimination, violation of freedom of association, and any coerced or forced labor.

• Due Diligence Procedure
  In order to fulfill its corporate social responsibilities, TCFHC fully implements the human rights policy. We compiled the potential and possible human rights issues during corporate operational processes through internal and external communication channels and the development trend of human rights issues at home and abroad. The frequency of occurrence and impact of the risk of issues related to human rights in the Company is assessed through questionnaires, which will serve as a reference for the Company to formulate business policies and welfare measures in the future.
• Human Rights Commitment and Survey
  In 2022, TCFHC and TCB conducted human rights due diligence for the first time, targeting all employees. It is mainly focused on five aspects which are “implementing diversity in the workplace”, “gender equality”, “maternal health protection”, “work overtime”, and “occupational safety and health”. The survey was carried out by filling in the questionnaires. A total of 25 potential human rights risk issues were compiled and investigated through questionnaires. 8,449 questionnaires were sent out to all employees, and 7,711 valid questionnaires were returned. The questionnaires' effective response rate was 91.26%. The overall risk ratio of the survey results was relatively low, showing that all employees fully agree with the human rights risk issues that the Company values. The Company has formulated mitigation measures for the 4 potential human rights risk issues identified with relatively high value at risk (VAR) is as follows:

• Updates on Implementation of Gender Equality and Human Rights Education and Trainings in TCFHC Group in 2021 Number of Staff Receiving Training Total Training Hours

The TCFHC Group has set up a variety of communication channels for healthy industrial relations and to ensure employees' opinions are effectively heard and responded. Employees are able to communicate with the Company through labor union, Employee Welfare Committee, and employer-employee meeting, or other internal appealing channels. Also, the Company's management is willing to take the initiative to assist employees in solving problems at workplace so as to reduce the occurrence of employment conflict.

In order to protect rights and interests of employees and enable harmonious industrial relations, in 2019, the labor unions of both TCB and TCS had signed to renew collective bargaining agreements and the validity period is 3 years. Based on the principle of integrity, both parties look forward to promoting a harmonious relationship to improve work efficiency, employee welfare and seek common goals for career development, creating a new win-win situation for the labor and management.

In order to take the employees' needs and expectations for the company into consideration, TCFHC, TCB, and TCS conducted employee satisfaction surveys to truly understand their level of satisfaction with the company's working environment, learning and development, promotion, welfare, corporate culture, and values. We also listen to various employees' opinions on the company, and take the results of their responses as references when implementing important policies in the future and provide employees with a high-quality working environment.

• Survey Method
  TCFHC and TCB adopt the Likert scale. The TCS questionnaire uses a 4-point scale (including strongly agree, agree, disagree, and strongly disagree).
• Survey Aspects
  It can be roughly divided into “Working Environment”, “Learning and Development”, “Promotion and Welfare”, and “Corporate Culture and Values”.
• Survey Results
  A total of 8,850 questionnaires were sent out during this survey, and 8,168 were returned (the return rate was 92.29%). After excluding invalid questionnaires (including unanswered or irregular samples that deviate from the normal value), there were a total of 8,070 valid questionnaires. The questionnaires' effective response rate was 91.19%, accounting for 84.72% of the total number of the Group's employees, which should be enough to reflect the employees opinions. In addition, the average score of the employee satisfaction survey was 4.36 points (out of 5), which showed that most of the employees were satisfied with the Company's corporate culture and results of policy implementation.