Sustainability Leader

In 2025, the shipping industry faced multiple challenges, including geopolitical conflicts, rapid changes in policies and regulations, and the pressure brought by AI and digital transformation. Yang Ming has actively responded to these challenges. In September 2025, the Company established the "Sustainability Development Office," headed by the President, who also serves as the Chief Sustainability Officer (CSO). The primary responsibility of this department is the timely and systematic integration of sustainability-related policies, regulations, and stakeholder requirements. At the beginning of each year, the office formulates strategic sustainability goals and assigns them to various departments to ensure that while the Company grows steadily, it achieves compliance and excellent performance in environmental, social, and governance (ESG) matters. The Sustainability Development Office regularly reports implementation progress to the Board of Directors and assists in analyzing and revising the Company's sustainable business strategy, ensuring that the Company remains focused on its core business while continuously improving overall operational performance. These measures not only demonstrate the Company's firm commitment to sustainable development but also lay a solid foundation for future stable growth.

Looking back at the past year, Yang Ming has delivered outstanding results in both operational performance and ESG. The Company has received recognition in both the "Sustainable Comprehensive Performance Award" and "Corporate Sustainability Reports Award" categories of the TCSA Taiwan Corporate Sustainability Awards for five consecutive years. Since 2021, the Company has also been continuously included as a constituent of the FTSE4Good TIP Taiwan ESG Index, Taiwan High Compensation 100 Index, and MSCI Global Standard Index. This indicates market recognition of the Company's business performance and sustainability achievements. Energy conservation and carbon reduction represent a global challenge, particularly for the shipping industry. Although the timeline for the annual Greenhouse Gas Fuel Intensity (GFI) regulatory mechanism and related economic measures proposed by the International Maritime Organization (IMO) at MEPC 83 has been postponed, the Company continues to proactively prepare and invest resources well in advance. In addition to signing contracts for seven LNG dual-fuel vessels and six methanol dual-fuel vessels in 2025, the first batch of five LNG dual-fuel vessels is expected to be delivered starting in 2026. Concurrently, the Company continues to invest in the research and application of biofuels and green fuels as alternative energy solutions. The Company's objective extends beyond short-term emissions reduction to advancing toward a green shipping model as a sustainable business goal. This approach will not only reduce emissions from the Company's operating fleet but also enable the Company to provide customers with lower-carbon transportation services.

In the social dimension, employees are the Company's most valuable asset. Excellent employees are the driving force behind Yang Ming's progress. The Company remains committed to enhancing employee well-being and occupational safety, further strengthening its focus on employee health, promoting telemedicine services, and continuously refining its Employee Assistance Programs (EAPs) to ensure every employee works in a safe and healthy environment. Employee health is a key factor directly affecting the Company's overall performance; thus, Yang Ming spares no effort in providing necessary support and resources. Yang Ming also values human rights issues within its supply chain. Each year, the Company conducts human rights due diligence through supplier questionnaires to understand the management of supply chain human rights, ensuring the operational resilience of its partners while maintaining stable cooperation.

Furthermore, the Company actively participates in local community engagement and charitable activities, supporting the development of athletic talent and sporting events. Through the Yang Ming Cultural Foundation, the Company promotes maritime culture and curates art exhibitions. The Company also collaborates with domestic maritime educational institutions to provide scholarships and professional equipment, which not only helps the maritime industry cultivate future talent but also fosters local and industrial development. In recent years, Yang Ming has been progressively advancing its digital transformation. Key applications include improving crossdepartmental integration efficiency, enhancing the precision and timeliness of terminal equipment operations, deploying AI to boost operational efficiency, collecting and monitoring data for industry-academia collaboration and telemedicine, and centralizing Global Service Center (GSC) operations. All of these serve as critical tools supporting the Company's ability to provide customers with more convenient and secure services.

"Aiming to become the top choice for customers and play a pivotal role in the global shipping industry" stands as Yang Ming's mission and vision. Beyond providing premium transportation services to fulfill customer needs and creating economic value for shareholders, the Company firmly believes in the need to address the key issues of concern to all stakeholders, thereby contributing to the sustainable development of society and the global environment.