Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Customer Relations
• Employee Care
• Environmental Protection
• Social Participation

Environmental Achievements

• Named the “Benchmark Corporation for Green Purchase” by the Taipei City Government in both 2011 and 2012.
• Increased use of electronic statements, paperless account opening for securities clients, passbook-free accounts, and electronic information exchange.
• Significant reduction in paper usage through electronic document management system.

Social Achievements

• Launched the “Yuanta Takeoff Project” to provide educational help to children.
• Launched the “Saving Faust Project” to promote anti-drug activities in schools.
• Supported various public interest lectures and initiatives.
• Sponsored research at the Liver Disease Prevention & Treatment Research Foundation.
• Donated to charitable organizations through various transaction platforms.

Governance Achievements

• Obtained CG6006 advanced corporate governance evaluation certification from the Taiwan Corporate Governance Association.
• Honored as the only financial holdings company with A++ ranking in the ninth Information Disclosure Evaluation System for Publicly Traded Companies.
• Received gold medal from The Asset Magazine for “Best Corporate Governance,” “Best CSR” and best investor relationship.

Climate Goals & Targets

Environmental Challenges

• Unfavorable global economic environment and low transaction volumes in the Taiwanese stock market.
• Uncertainty in the global economy for 2013.

Mitigation Strategies

• Active yet cautious management, keenly attuned to international developments and cross-strait relations.
• Seizing business opportunities to expand financial businesses.
• Upholding business development strategies to achieve balanced development of securities, banking and insurance businesses.

Supply Chain Management

Responsible Procurement

• Fair and transparent bidding processes
• Ethical conduct clauses in contracts
• Ethical conduct statements from vendors

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3.1 Guidelines, United Nation Global Compact, ISO26000 Index, Corporate Social Responsibility Best Practice Principles for TWSE/GTSM-Listed Companies

Certifications: ISO 27001 Information Safety Management System (Yuanta Financial Holdings and Yuanta Bank), BS10012 Personal Information Management System (Yuanta Bank), CG6006 advanced corporate governance evaluation certification

Sustainable Products & Innovation

• CSR and resource related mutual funds

Awards & Recognition

• Best Corporate Governance
• Best CSR
• Best investor relationship (The Asset Magazine)
• A++ grade in the ninth ranking of publicly traded company information disclosure system
• Benchmark Corporation for Green Purchase (Taipei City Government)

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Environmental Stewardship
• Social Responsibility

Environmental Achievements

• Recognized by the Taipei City Government as a "Benchmark Unit for Green Purchasing" for three consecutive years (2011-2013)
• Reduced electricity usage by 204,600 kWh and CO2 emissions by 409,997 kg in 2013 compared to 2012 at the headquarters building.
• Increased use of electronic statements
• Launched "New Generation Deposit," a passbook-less cash savings account

Social Achievements

• Organized 286 events through the Yuanta Foundation, focusing on charity, social education, talent development, arts promotion, and legal education.
• Supported various charities through co-branding cards and donation platforms.
• Hosted employee health seminars and provided e-learning courses.
• Implemented anti-corruption and corporate ethics training for all employees.

Governance Achievements

• Appointed well-known professors and experts as independent directors.
• Established a comptroller committee and a formal compensation committee.
• Received an A++ rating in the 10th TWSE/GTSM Listed Companies Disclosure Evaluation System, the only financial holding company to receive this rating for two consecutive years.

Climate Goals & Targets

Environmental Challenges

• Weak economic recovery in Taiwan in 2013.
• Uncertainty from global economic factors (financial and debt problems, US currency policy, China's economic transformation).
• Competition from Chinese industries impacting export competitiveness.

Mitigation Strategies

• Focus on maximizing shareholder value and balanced development of securities, banking, and insurance businesses.
• Consolidation of structural profitability and sustainable management.
• Strengthening risk management capabilities.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Green purchasing initiatives

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of green finance products and services

Reporting Standards

Frameworks Used: GRI G3.1, UN Global Compact, Social Responsibility Index (ISO 26000 Index), Corporate Social Responsibility Best Practice Principles for TWSE/GTSM-Listed Companies

Certifications: ISO 27001 (bank subsidiary), BS10012 (bank subsidiary)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Green finance products (e.g., loans to environmental protection industries, CSR funds)
• Passbook-less cash savings accounts

Awards & Recognition

• Numerous awards for corporate governance, CSR, and investor relations (see Company Overview)

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Environmental Sustainability
• Social Responsibility

Environmental Achievements

• Recognized by the Taipei City Government as a Benchmark Business for Green Purchasing for five consecutive years.
• Fulfilled the commitment made in our 2014 CSR Report to request all 589 major suppliers of all group subsidiaries sign an environmental sustainability and human rights commitment, with a completion rate of 92.2%.
• In 2015, Yuanta Bank invested NT$13.4 billion into the green energy industry, accounting for 38.4% of its funding to these six industries.

Social Achievements

• Yuanta Financial Holdings selected for inclusion in Taiwan High Compensation 100 Index in 2015.
• By 2015, Yuanta Bank operated a network of 348 ATMs across Taiwan, with 155 having been replaced with “accessible ATMs”.
• Total Yuanta Staff Volunteer Participation: 1,389 participants

Governance Achievements

• Ranked among top 5% of companies in first and second annual TWSE corporate governance assessments (Yuanta Futures as ranked among top 5% of companies listed on the Taipei Exchange for the second consecutive year).
• Received an Outstanding ranking in the Taiwan Corporate Governance Association’s CG6010 (2015) Assessment, the first company in Taiwan to successfully receive this accreditation.
• The only domestic financial holdings company to receive the highest honor in the Taiwan Stock Exchange’s annual evaluation of information disclosure among listed companies, an A++, for four consecutive years.

Climate Goals & Targets

Environmental Challenges

• High employee turnover in certain subsidiaries (particularly field and telemarketing staff in Yuanta Life).
• Growing need to adapt to the digitalization of financial services.
• Maintaining capital standards while expanding operations (e.g., acquisition of Ta Chong Bank).

Mitigation Strategies

• Implementing comprehensive talent development programs, including management associate programs and industry-academia collaborations.
• Establishing an Electronic Commerce Office to coordinate digital initiatives across subsidiaries.
• Rigorous risk management and pragmatic business development strategies.

Supply Chain Management

Supplier Audits: 92.2% of major suppliers signed environmental sustainability and human rights commitment.

Responsible Procurement

• Integrity Management principles
• Environmental sustainability and human rights commitment
• Green purchasing policies

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons, earthquakes, floods

Transition Risks

• Changes in investor behavior due to climate concerns.

Opportunities

• Growth in green energy financing and investment.

Reporting Standards

Frameworks Used: GRI G4 Core, AA1000AS:2008, UN Sustainable Development Goals (SDGs), ISO 26000

Certifications: ISO 14001 (Environmental Management Systems), ISO 14064-1 (Greenhouse Gas Inventory), ISO 50001 (Energy Management)

Third-party Assurance: BSI Group

UN Sustainable Development Goals

• Goal 1 (No Poverty)
• Goal 3 (Good Health and Well-being)
• Goal 4 (Quality Education)
• Goal 5 (Gender Equality)
• Goal 6 (Clean Water and Sanitation)
• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 16 (Peace, Justice and Strong Institutions)
• Goal 17 (Partnerships for the Goals)

Various initiatives contribute to these goals through education, community investment, environmental protection, and ethical business practices.

Sustainable Products & Innovation

• Green energy funds
• Microinsurance products

Awards & Recognition

• Platinum Award for Excellence in Governance, CSR, and Investor Relations Benchmarking (The Asset)
• Four awards from Corporate Governance Asia
• Top 5% ranking in Taiwan Stock Exchange’s corporate governance assessments
• A++ rating in Taiwan Stock Exchange’s Information Disclosure Evaluation

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Corporate Governance
• Social Development

Environmental Achievements

• Achieved 100% signing rate of environmental sustainability and human rights commitment among suppliers.
• Received an assurance opinion statement from BSI Group, becoming the first financial holdings company in Taiwan to have all subsidiaries pass environmental assurance.
• Recognized by the Taipei City Government as a Benchmark Business for Green Purchasing for six consecutive years (2011-2016).

Social Achievements

• Launched several innovative digital services (mobile underwriting, lending, account opening, securities lending) through Yuanta Securities.
• All 494 ATMs across Taiwan were accessible ATMs.
• Yuanta Bank's accessible interest and exchange rate services page earned an A+ certification from the National Communications Commission.
• Yuanta Life added CSR rules to its investment policy, aligning with the Principles for Responsible Investment.
• Yuanta Funds signed the Taiwan Stock Exchange's Stewardship Principles for Institutional Investors.

Governance Achievements

• Received the Platinum Award for Excellence in Governance, CSR and Investor Relations from The Asset Corporate Awards 2016 for the third consecutive year.
• Implemented ISO 14001 Environmental Management Systems across Yuanta Financial Holdings and nine subsidiary companies.
• Established the Center for the Promotion of Corporate Social Responsibility in 2011 to consolidate responsibility for CSR-related projects.

Climate Goals & Targets

Environmental Challenges

• Rapid changes in the financial environment.
• Increasingly stringent financial regulations in Taiwan.
• Over-competitive nature of local financial institutions.
• Climate change and its impact on the global environment.

Mitigation Strategies

• Implemented a three-pronged development strategy (securities, banking, insurance).
• Adjusted development strategy to focus on solidifying core competencies and driving comprehensive growth.
• Implemented measures to reduce energy consumption and greenhouse gas emissions.
• Participated in CDP surveys to assess climate change risks and opportunities.
• Implemented ISO 14064-1 Greenhouse Gas Inventory system and ISO 50001 Energy Management system.

Supply Chain Management

Supplier Audits: 100% completion rate of environmental sustainability and human rights commitment among suppliers.

Responsible Procurement

• Incorporated CSR terms into supplier contracts.
• Prioritized green purchasing of products and consumables.

Climate-Related Risks & Opportunities

Physical Risks

• Climate change

Transition Risks

• Changes in industrial structures & policies
• Volatility of financial markets

Opportunities

• Green energy industry financing loans
• Green energy funds

Reporting Standards

Frameworks Used: GRI Standards 2016, UN Sustainable Development Goals (SDGs), ISO 26000, Taiwan Stock Exchange Corporation Rules

Certifications: ISO 14001, ISO 50001, ISO 14064-1

Third-party Assurance: BSI Group

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Green energy industry financing loans
• Green energy funds
• ESG Strategy Funds

Awards & Recognition

• Platinum Award for Excellence in Governance, CSR and Investor Relations (The Asset Corporate Awards 2016)
• Best Innovative Securities Fintech Application and Best Digital Securities awards (Wealth Magazine)
• Best Wealth Management and Securities, Best Digital Innovation, and Most Professional awards (Business Today)

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Customer Care
• Green Operations
• Environmental Sustainability
• Employee Care
• Community Engagement

Environmental Achievements

• Implemented ISO 14001 Environmental Management Systems, ISO 14064-1 GHG Inventory Systems, and ISO 50001 Energy Management Systems across 324 business locations in Taiwan.
• Reduced energy consumption by 6.04% (saving approximately NT$1.2 million).

Social Achievements

• Launched a group-wide employee opinion survey with 72% participation.
• Invested NT$61.21 million in charitable activities.
• Provided accessible ATMs and online banking services for visually and hearing-impaired customers.

Governance Achievements

• Received the Asset's Platinum Award for Excellence in Governance, CSR, and Investor Relations Benchmarking in Asia.
• Ranked in the top 5% of listed companies in Corporate Governance Evaluations for the third consecutive year.
• Established three lines of defense against money laundering and terrorist financing.

Climate Goals & Targets

Environmental Challenges

• Global political and economic uncertainty.
• Changes in financial and corporate governance laws.
• Industry competition.
• Climate change impacts on operations.
• Money laundering and terrorist financing.
• Cybersecurity threats.
• IFRS updates.

Mitigation Strategies

• Strengthened corporate governance.
• Implemented risk management mechanisms.
• Established three lines of defense against money laundering and terrorist financing.
• Improved information security.
• Developed and implemented energy and climate change management policies.
• Complied with IFRS updates.
• Engaged in stakeholder communication and feedback.

Supply Chain Management

Supplier Audits: 100% coverage

Responsible Procurement

• Code of conduct
• Supplier sustainability requirements
• Environmental sustainability and human rights commitment in procurement contracts

Climate-Related Risks & Opportunities

Opportunities

• Development of green finance products and services.

Reporting Standards

Frameworks Used: GRI Guidelines: Core Options, G4 Content Indexes, UN Sustainable Development Goals (SDGs), ISO 26000

Certifications: ISO 14001, ISO 14064-1, ISO 50001

Third-party Assurance: BSI Group

UN Sustainable Development Goals

• Goal 3
• Goal 4
• Goal 6
• Goal 7
• Goal 8
• Goal 11
• Goal 12
• Goal 13
• Goal 16

Initiatives linked to SDGs through service targets and charitable contributions.

Sustainable Products & Innovation

• Green bonds
• ESG Strategy Fund
• Yuanta Video Robot Account Opening service

Awards & Recognition

• The Asset Platinum Award
• Wealth Magazine Finance Award
• FTSE4Good Emerging Index inclusion
• Taipei City Energy Saving Leader Award
• Ministry of Education Crystal Award
• Asiamoney Best Research Team in Taiwan

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Customer Rights
• Employee Care
• Environmental Sustainability
• Social Welfare
• Financial Inclusion
• Sustainable Finance
• Responsible Investment
• Climate Change

Environmental Achievements

• Achieved ISO 14001 Environmental Management Systems certification for 100% of the organization.
• Eleven self-owned buildings received ISO 50001 Energy Management Systems certification.
• Implemented ISO 14046 Water Footprint assessment and ISO 20400 Sustainable Procurement Guidance.
• Green procurement expenditures totaled NT$125.56 million.
• Purchased 500,000 kWh of green power for the fourth consecutive year.
• Scope 1 and 2 emissions in 2019 totaled 21,512.51 tons of CO2e. Achieved short-term carbon reduction goals.
• Received a Leadership Band score of A- by the Carbon Disclosure Project (CDP).

Social Achievements

• Held 721 public service activities, with 2,812 volunteers donating 16,144 volunteer hours, benefiting 268,787 people.
• Employee satisfaction has risen for three consecutive years, leading peers in the Taiwanese financial industry and global high performers in 16 and 14 indicators respectively.
• Held 2,857 domestic training courses totaling 514,265 hours of training.
• Launched the Yuanta FTSE4Good TIP Taiwan ESG ETF, the first ESG-themed ETF in Taiwan.
• 88% of surveyed employees were positive about their overall work input.

Governance Achievements

• Ranked among the top 5% of listed companies in the Taiwan Stock Exchange's Corporate Governance Evaluation.
• Established the Sustainability Committee directly under the Board of Directors.
• Established the Nominating Committee.
• Seven of the Group’s nine subsidiaries have female directors or supervisors.
• Board of Directors held 16 meetings with a 98% attendance rate.

Climate Goals & Targets

Environmental Challenges

• Climate change risks, including physical risks (extreme weather events) and transition risks (regulatory changes, market shifts).
• Economic and financial risks due to global economic instability.
• Legal compliance and supervisory issues related to environmental protection, anti-money laundering, and data protection.
• Digital finance and information security risks.

Mitigation Strategies

• Integrated climate risk into the risk management framework, supporting the TCFD framework.
• Developed an industry-specific climate risk assessment tool.
• Strengthened audits and controls for investments in/loans to high-polluting enterprises.
• Implemented responsible investing, sustainable insurance, responsible banking, and Equator principles.
• Developed digital insurance services and new products related to natural disasters.
• Increased the proportion of warrants issued linked with green energy-related industries.
• Developed funds focused on sustainable development.
• Established a complete risk management organizational structure, policies, and management practices.
• Introduced ISO 27001 Information Security Management System (ISMS) and BS 10012 Personal Information Management System (PIMS) standards and certification.
• Strengthened controls on outbound emails and data transmission.

Supply Chain Management

Supplier Audits: 137 major suppliers evaluated

Responsible Procurement

• Green procurement
• CSR clause added to supplier contracts
• Supplier CSR Conference

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events, natural disasters

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products
• Investment in renewable energy

Reporting Standards

Frameworks Used: GRI Standards Core Option, Taiwan Stock Exchange Corporation Rules, Integrated Report (IR) Framework, Sustainable Development Goals (SDGs), TCFD

Certifications: ISO 14001, ISO 14046, ISO 14064-1, ISO 20400, ISO 50001, ISO 45001, ISO 27001, BS 10012:2017

Third-party Assurance: BSI Taiwan

Sustainable Products & Innovation

• Yuanta FTSE4Good TIP Taiwan ESG ETF
• Green energy warrants
• Green bonds
• Green credit card
• Mortgages for green buildings
• Car loans for new energy vehicles

Awards & Recognition

• Dow Jones Sustainability World Index
• Dow Jones Sustainability Emerging Markets Index
• MSCI ESG A rating
• Bloomberg Gender-Equality Index (GEI)
• FTSE4Good Emerging Index
• Taiwan Sustainability Index
• Taiwan Stock Exchange Corporate Governance Evaluations
• Happy Enterprise in service industry
• Green Procurement Award
• Corporate Sustainability Report Gold Award
• Excellence in Sustainability Award from BSI
• Most Outstanding Company in Taiwan－Financial Sector
• Ministry of Education Sports Enterprise Certification
• Best Investor Relations Company (Taiwan)
• Asia's Best CEO (Investor Relations)
• Asia's Best CFO (Investor Relations)
• FTSE4Good TIP Taiwan ESG Index constituent stock
• Corporate Sustainability Report Gold Award
• Excellence in Sustainability Award from BSI
• Fund Launch of The Year

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Customer Rights
• Employee Care
• Environmental Sustainability
• Social Welfare
• Climate Change
• Sustainable Finance
• Financial Inclusion
• Information Security
• Supplier Management
• Human Rights

Environmental Achievements

• Purchased 2.51 million kWh of green electricity over 5 consecutive years.
• 10 self-owned buildings received ISO 50001 Energy Management Systems certification.
• Completed ISO 14001 Environmental Management Systems, ISO 14064-1 GHG Inventory verification, and ISO 14046 Water Footprint assessment for 100% of the organization.
• Obtained ISO 20400 sustainable procurement verification and are promoting sustainable procurement. Green procurement expenditures totaled NT$83.85 million.
• Held 3 supplier CSR conferences with 118 major suppliers participating.

Social Achievements

• Held a total of 621 charity activities, with 2,039 volunteers participating and 9,019 volunteer hours devoted, benefiting 718,524 participants across Taiwan.
• Donated NT$100,002,000 to seven social welfare organizations, helping more than 100,000 people.
• Donated NT$160 million to first-line healthcare workers for the emergency purchase of medical equipment.
• Yuanta Securities implemented an annuity stock purchase service, with 43,120 low-income salary earners (79,066 valid contracts).
• The overall customer satisfaction rate of the five subsidiaries has reached 98%
• 3,330 courses were held in Taiwan, with a total of 556,991 training hours, an increase of 16.6% over the previous year.

Governance Achievements

• Established an Information Security Department and a Chief Information Security Officer.
• The Board of Directors held a total of 13 meetings with an attendance rate of 99%.
• Yuanta Bank joined the Equator Principles Association and signed the “Equator Principles”.
• Yuanta Financial Holdings and its five subsidiaries have all passed ISO 27001 certification to strengthen information security.
• The Company was awarded the “CG6012(2019) Corporate Governance Framework Assessment Certificate with High Distinction” by the Taiwan Corporate Governance Association.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting operations, credit risk, and investment portfolio.
• Climate change risks affecting operations, balance sheet, income statement, and cash flow statement.
• Geopolitical risks impacting global economic growth and capital flows.
• Asset bubble risk due to loose monetary policies and market volatility.

Mitigation Strategies

• Implemented epidemic prevention measures, relief actions, and repayment assistance programs.
• Integrated climate risks into the Group's risk management policy, completed SBT Category 1 and 2 targets, and conducted scenario analysis.
• Enhanced monitoring and risk assessment of credit, investment, and financial counterparties in high-risk countries.
• Established risk monitoring indicators and conducted regular monitoring of various risks.

Supply Chain Management

Supplier Audits: 133 major suppliers evaluated

Responsible Procurement

• Sustainable procurement guidelines
• Supplier CSR conferences
• Green procurement expenditures

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Typhoons

Transition Risks

• Carbon tax
• Regulatory changes

Opportunities

• Development of energy-efficient products
• Green finance

Reporting Standards

Frameworks Used: GRI Standards Core Option, Taiwan Stock Exchange Corporation Rules, Integrated Report (IR) Framework, United Nations Sustainable Development Goals (SDGs), SASB Standards – Investment Banking and Brokerage

Certifications: ISO 45001, ISO 26000, ISO 27001, ISO 14001, ISO 20400, ISO 14046, ISO 50001, ISO 14064-1

Third-party Assurance: BSI Taiwan (AA1000AS v3 and GRI standards), PwC Taiwan (limited assurance on SASB)

Sustainable Products & Innovation

• Electric Vehicle ETN
• Yuanta Taiwan High-yield Intellectual Capital Leading Company Fund A
• Yuanta Global NexGen Communication Innovative Technology ETF
• Yuanta FTSE4Good TIP Taiwan ESG ETF
• Green bonds

Awards & Recognition

• Dow Jones Sustainability World Index constituent stock
• Dow Jones Sustainability Emerging Markets Index constituent stock
• FTSE4Good Emerging Indexes constituent stock
• Bloomberg Gender Equality Index (GEI)
• MSCI ESG Rating A
• The Asset Magazine ESG Corporate Awards - Platinum
• CommonWealth Magazine CSR Corporate Citizenship Award
• Wealth Magazine Taiwan Financial Award
• CDP Leadership level score of A
• FinanceAsia Magazine Best Environmental Stewardship in Taiwan
• The National Brand Yushan Awards Best Product Category
• Best Companies to Work for in Asia

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Reduced carbon intensity by 32% compared with 2017 (Category 1&2 reduction)
• Adopted 100% green energy at 4 operational sites in 2021
• Increased green energy use by 3.4% in 2021
• Obtained group-wide ISO 14064-1 GHG inspection and verification in 2018
• All 10 proprietary buildings in Taiwan passed ISO 50001 energy management system verification in 2021, improving energy management performance by nearly 10% and reducing accumulated carbon emissions by more than 1,648.57 metric tons.

Social Achievements

• Launched sustainability indexed securities for investment and warrants linked to green energy industries.
• Engaged with an investment target (listed company) to suggest and require it to prepare an ESG report.

Governance Achievements

• Established a comprehensive climate governance structure with the Board of Directors as the highest governing body, overseeing climate-related risks and opportunities.
• Set up a TCFD Working Group in 2021 to manage climate-related issues.
• Approved climate value-at-risk threshold for the Group's investment positions.
• Linked sustainable performance to reward mechanisms and integrated climate risk management into organizational culture.
• Approved the 2021-2025 Group Sustainable Development Strategy Roadmap.

Climate Goals & Targets

Environmental Challenges

• Cost for decarbonization policies and legal compliance
• Cost for eco-friendly green energy transformation
• Investors halting investment in highly polluting industries
• Impact on the Company’s reputation for investing in highly polluting industries
• Cost for insurance covering natural disasters and infectious diseases
• Extreme climate causing companies that receive investment/financing to halt their operations
• Floods causing damage to service points and collaterals

Mitigation Strategies

• Staying updated with international carbon tax and regulations, engaging with high-carbon-emission companies.
• Staying updated with market demand for low-carbon transformation, assisting clients.
• Embedding sustainable finance management procedures into the asset management process, enhancing review mechanisms for high-pollution investments.
• Strengthening audits, controls, and engagement for investments in highly polluting enterprises.
• Including climate-related factors in product design for insurance policies.
• Performing due diligence and KYC processes on investment and financing targets.
• Considering flooding factors in operational sites and real estate investments.
• Diversifying investment portfolio, reconsidering risk tolerance and asset risk pricing based on scenario analysis.
• Setting up climate risk monitoring indicators based on estimated investment portfolio losses.
• Revising the “Industry-Specific Environmental and Social Risk Management Rules” to review clients’ capacity to respond to transition risks during due diligence, reducing or refusing to finance companies with high climate risks.
• Formulating the “Guidelines for Managing Project Financing under the Equator Principles” to rate project finance loans and manage accordingly.
• Engaging with clients to prevent negative financial impact from climate change.

Supply Chain Management

Responsible Procurement

• Sustainable Procurement Declaration
• Integrity Management Guidelines
• Procedures for Integrity Management and Guidelines for Conduct
• Supplier Sustainable Procurement Guidance
• Guidelines for Supplier Management
• Integrity Commitment Statement
• Supplier Sustainable Procurement Clause
• Green Procurement Guidelines

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters (typhoons, floods)
• Water shortages

Transition Risks

• Cost for decarbonization policies and legal compliance
• Cost for eco-friendly green energy transformation
• Investors halting investment in highly polluting industries
• Impact on reputation for investing in highly polluting industries

Opportunities

• Green procurement and supplier management
• Develop and promote low-carbon products and services
• Engage with clients on sustainability and green consumption
• Sustainable finance markets
• Green bond markets
• Crisis management and early warning for events involving natural disasters

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 14064-1, ISO 50001

Sustainable Products & Innovation

• Sustainability indexed securities
• Warrants linked to green energy industries
• Green bonds
• Sustainability bonds
• ESG-compliant ETN products
• ESG ETFs
• Taiwan stock funds focused on ESG-relevant industries

Awards & Recognition

• CDP Leadership level score of A for 2020 and 2021

Environmental Metrics

ESG Focus Areas

• Climate Change
• Sustainable Finance
• Corporate Governance
• Social Participation
• Employee Well-being
• Financial Inclusion
• Supply Chain Sustainability

Environmental Achievements

• Reduced carbon emissions by 6% per unit of revenue.
• Reduced energy consumption by 5% per unit of revenue.
• Five business locations using 100% green energy.
• Achieved CDP's "A-List" for three consecutive years and ranked in the leadership level for five consecutive years.
• Passed SBTi compliance validation.

Social Achievements

• Beneficiaries of public welfare activities exceeded 670,000.
• Number of beneficiary groups exceeded 110.
• Employee participation in volunteer activities increased by 15% compared to the base year.
• Launched various financial inclusion initiatives for small investors and disadvantaged groups.
• Improved employee engagement rate to 86%.

Governance Achievements

• Ranked in the top 5% of the Taiwan Stock Exchange's 8th Corporate Governance Evaluation.
• Established Internal Carbon Pricing (ICP) mechanism.
• Published the first TCFD Report.
• Implemented performance management measures linking senior managers' objectives with sustainable business practices.

Climate Goals & Targets

Environmental Challenges

• Climate-related risks (physical and transition risks) impacting investment and financing portfolios.
• Supply chain disruptions due to global events.
• Maintaining high employee engagement and retention rates.

Mitigation Strategies

• Developed climate risk scenario analysis model and implemented risk management actions.
• Implemented ISO 20400 sustainable procurement guidelines and conducted supplier audits.
• Implemented long-term incentive plans linked to sustainable development and performance.
• Conducted regular employee engagement surveys and implemented employee well-being programs.

Supply Chain Management

Supplier Audits: 150 major suppliers audited annually; 100% coverage of new suppliers.

Responsible Procurement

• ISO 20400 sustainable procurement guidelines.
• Supplier’s Terms and Conditions for Sustainable Procurement.
• Integrity Management Terms and Conditions.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events impacting operations and investment/financing targets.
• Flooding and sea-level rise impacting business locations.

Transition Risks

• Costs associated with decarbonization policies and legal compliance.
• Investor divestment from high-polluting industries.
• Impact on reputation for investing in high-polluting industries.

Opportunities

• Improving energy efficiency in business locations.
• Green procurement and supplier management.
• Developing and promoting low-carbon products and services.
• Sustainable investment and green loans.
• Sustainable development bond market.

Reporting Standards

Frameworks Used: GRI Standards Universal Standards 2021, SASB Standards – Investment Banking and Brokerage, SASB Standards – Commercial Banks, TCFD

Certifications: ISO 14001, ISO 45001, ISO 50001, ISO 14064-1, ISO 14046, ISO 20400, ISO 27001, ISO 10002

Third-party Assurance: BSI Taiwan (AA1000AS v3), PwC Taiwan (limited assurance on SASB)

Sustainable Products & Innovation

• ESG-compliant ETNs
• 5G ETFs
• ESG ETF
• Taiwan stock funds focusing on related industries
• ESG futures
• Sustainable development bonds
• Sustainability-linked loans

Awards & Recognition

• Dow Jones Sustainability Indices (DJSI) Emerging Markets Index and World Index constituent for four consecutive years.
• S&P Global Sustainability Yearbook Silver Class.
• CDP Leadership Level A for three consecutive years.
• Bloomberg Gender-Equality Index.
• FTSE4Good Emerging Index constituent stock.
• FTSE4Good TIP Taiwan ESG Index constituent stock.
• Taiwan Stock Exchange's Corporate Governance Evaluation top 5%.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Sustainable Finance
• Talent Cultivation
• Corporate Governance
• Social Welfare

Environmental Achievements

• 8.12% reduction in carbon emissions and 16.20% reduction in energy consumption per unit of revenue.
• Waste per capita reduced by 84.36% compared to the base year.
• Water consumption per square meter reduced by 2.79% compared to the base year.
• Five business locations utilize 100% green energy; overall green energy usage by the entire group in 2023: 7.06%.

Social Achievements

• Selected as a constituent stock of the Dow Jones Sustainability (DJSI) Emerging Markets Index and World Index for the 5th consecutive year; ranked 1st in the category of diversified financial services and capital markets globally.
• Donated NT$20 million to support Hualien earthquake disaster relief.
• Over 150 groups collaborated with Yuanta and over 640,000 individuals were beneficiaries of philanthropic activities.
• Average training hours per employee were 55.3 hours

Governance Achievements

• Ranked in the top 5% of listed companies by the Corporate Governance Evaluation of the Taiwan Stock Exchange in 2022.
• TCFD report received the highest-level certification of "Level 5+: Excellence."
• Implemented an internal carbon pricing mechanism.

Climate Goals & Targets

Environmental Challenges

• Global market volatility due to geopolitical conflicts, high interest rates, and economic slowdown.
• Difficulty in recruiting and retaining talent.
• Climate change risks and opportunities

Mitigation Strategies

• Prudent and sound operating principles, internal adjustments in response to external changes.
• Comprehensive compensation and benefit system to recruit domestic and overseas talents; long-term incentive plan linked to sustainable performance.
• Internal carbon pricing mechanism; investment and financing measures for climate change risk management; adaptation and mitigation actions to reduce environmental impact.

Supply Chain Management

Supplier Audits: 164 major suppliers audited; 5 high-risk suppliers audited on-site.

Responsible Procurement

• ISO 20400 Sustainable Procurement Guidelines
• Supplier’s Terms and Conditions for Sustainable Procurement
• Supplier Sustainable Procurement Guidance

Climate-Related Risks & Opportunities

Physical Risks

• Increase in insurance premium cost for extreme climate
• Extreme climate causes investment targets/institutional clients to halt their operations
• Losses from business locations and collateral damages due to flooding
• Losses from business locations and collateral damages due to sea level rise

Transition Risks

• Cost for decarbonization policies and legal compliance (investment and financing targets)
• Cost for decarbonization policies and legal compliance (own operations)
• Cost for eco-friendly green energy transformation
• Investors divestment from high-polluting industries
• Impact on the Company’s reputation for investing in highly polluting industries

Opportunities

• Improving energy efficiency in business locations
• Green procurement and supplier management
• Develop and promote low-carbon products and services
• Customer engagement on sustainability and green consumption concepts
• Sustainable investment and green loan
• Sustainable development bond market
• Cooperation with government agencies
• Natural disaster crisis management and early warning measures

Reporting Standards

Frameworks Used: GRI Universal Standards 2021, TCFD, SASB Standards– Investment Banking and Brokerage, SASB Standards–Commercial Banks, UN SDGs

Certifications: ISO 14001, ISO 14046, ISO 14064-1, ISO 14067, ISO 20400, ISO 50001, PAS 2060, ISO 22301, ISO 26000, ISO 27001, ISO 45001, ISO 45005

Third-party Assurance: BSI Taiwan (AA1000AS v3), PwC Taiwan

Sustainable Products & Innovation

• Green bonds
• Sustainability bonds
• Social bonds
• Sustainability-linked bonds
• ESG ETFs
• Green energy-related warrants
• Electric vehicle-related ETNs
• Micro-injury insurance
• Eldercare trust
• Disability trust
• Yuanta Mobile Banking APP
• Mr. Investor APP

Awards & Recognition

• Dow Jones Sustainability World Index and Emerging Markets Index constituent stock (5 consecutive years)
• S&P Global Sustainability Yearbook Silver Class
• CDP Leadership Level A (6 consecutive years)
• Bloomberg Gender Equality Index
• FTSE4Good Emerging Index constituent stock (7 consecutive years)
• FTSE4Good TIP Taiwan ESG Index constituent stock (6 consecutive years)
• CommonWealth Sustainable Citizenship Award Top 100 Enterprises
• Wealth Magazine | Financial Holdings CSR Premium Award
• TCSA Growth through Innovation Leadership Award, Talent Development Leadership Award, and Creative Communication Leadership Award
• TCSA Taiwan Top 100 Sustainable Exemplar Enterprises Award and Corporate Sustainability Report Platinum Award
• TSAA Environmental Sustainability Award, Social Inclusion Award, and Economic Development Award
• British Standards Institution (BSI) Sustainability Resilience Award - Pilot Award
• British Standards Institution (BSI) Information Resilience Award – Group Award
• Taiwan Blood Services Foundation Outstanding Blood Donor Group (9 consecutive years)
• National Sustainable Development Award (non-manufacturing industries)
• Global Views Monthly ESG Corporate Sustainability Awards: Financial Insurance Industry Category–Exemplary Award
• Corporate Governance Asia Magazine Asia's Best CEO (Investor Relations), Asia's Best CFO (Investor Relations), Best Investor Relations Professional, Best Investor Relations Company, Best Environmental Responsibility Company
• HR Asia Best Company to Work for in Asia