The Board of Directors of SKFH has established a Corporate Sustainability Committee, which is responsible for overseeing the sustainable development and climate change initiatives of SKFH and its subsidiaries, including green finance planning and performance, greenhouse gas inventories, and carbon emission reduction targets, etc., and submits reports to the Board of Directors on a regular basis. The Company also pays close attention to the issue of global climate change, with the Board of Directors as the highest responsible unit for climate management, and takes climate change into consideration in its operational plans, risk management policies, and risk appetite. The Company's Corporate Sustainability Committee tracks the status and results of the implementation of corporate climate change risks and opportunities, and has a TCFD group under its management responsible for the planning and execution of these measures, and reports the results to the Board of Directors. In addition, climate change risk is also included in the Own Risk and Solvency Assessment(ORSA)report, which is regularly submitted to the Risk Management Committee and the Board of Directors for discussion and approval.

SKL Climate Governance Framework

In order to effectively implement climate risk management, SKL has set up three lines of internal control and their related responsibilities are as follows: