Climate Change Data

O-Bank Co., Ltd.

Climate Impact & Sustainability Data (2020, 2021, 2022, 2023)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:3,359.47 tCO2e/year (Taiwan-wide)
Scope 1 Emissions:240.9585 tCO2e/year (Headquarters)
Scope 2 Emissions:3,067.5538 tCO2e/year (Headquarters)
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Increased purchase of renewable energy certificates by 13 times compared to the previous year. Targeting 10% renewable energy by 2030.
Total Energy Consumption:2,852,154 kWh/year (Headquarters)
Water Consumption:12.742 million liters/year (Headquarters)
Waste Generated:80.293 tons/year (Headquarters)
Carbon Intensity:0.312 tons CO2e/million NT$

ESG Focus Areas

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

Environmental Achievements

  • Reduced greenhouse gas emissions by 7.6% across all Taiwan operating locations.
  • Achieved mid-term environmental management reduction targets for electricity, water, and waste reduction at the headquarters building in 2020.
  • Increased purchase of renewable energy certificates by 13 times compared to the previous year.

Social Achievements

  • Launched the "Impact Project," leveraging customer deposits to provide microloans to economically disadvantaged groups.
  • Increased company-wide volunteer hours by 44%.
  • Supported social enterprises and B corporations, receiving awards from the Ministry of Economic Affairs, Small and Medium Enterprise Administration.

Governance Achievements

  • Ranked among the top 5% of listed companies in the Taiwan Stock Exchange's 2020 Corporate Governance Assessment.
  • Selected as a constituent stock of the Taiwan Stock Exchange's Corporate Governance 100 Index.
  • Established a whistleblower system hotline; no illegal or fraudulent activities occurred in 2020.

Climate Goals & Targets

Long-term Goals:
  • Achieve 8.2% reduction in per capita carbon emissions from electricity consumption at headquarters by 2030.
  • Achieve 2.2% reduction in per capita water consumption at headquarters by 2030.
  • Achieve 8% reduction in per capita waste generation at headquarters by 2030.
  • Achieve 10% renewable energy usage by 2030.
Medium-term Goals:
  • Achieve 8% reduction in per capita carbon emissions from electricity consumption at headquarters by 2020 (achieved).
  • Achieve 2% reduction in per capita water consumption at headquarters by 2020 (achieved).
  • Achieve 5% reduction in per capita waste generation at headquarters by 2020 (achieved).
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Impact of the COVID-19 pandemic on business operations and customer needs.
  • Climate change risks, including increased severity and frequency of extreme weather events impacting operations and business.
  • Industry-wide challenges related to talent acquisition and retention in the rapidly evolving digital finance sector.
Mitigation Strategies
  • Provided loan repayment relief and interest rate reduction programs for customers affected by the pandemic.
  • Implemented a comprehensive climate change risk assessment and management framework aligned with the TCFD recommendations.
  • Developed and implemented the "O-star Elite Talent Development Plan" to cultivate internal talent and enhance organizational competitiveness.

Supply Chain Management

Supplier Audits: 100% self-assessment rate for suppliers with procurement exceeding NT$1 million; 180% on-site audit rate.

Responsible Procurement
  • Prioritizing green products and services.
  • Incorporating CSR considerations into supplier selection.
  • Conducting supplier self-assessments and on-site audits.

Climate-Related Risks & Opportunities

Physical Risks
  • Increased severity and frequency of extreme weather events impacting operations and business.
  • Damage to property used as collateral for loans.
Transition Risks
  • Increased carbon pricing (carbon tax) for suppliers and operations.
  • Changes in consumer preferences towards ESG products.
Opportunities
  • Improved ESG ratings attracting investment.
  • Diversification of financial assets through green bonds and sustainable investments.
  • Development of new revenue streams from green markets and products.

Reporting Standards

Frameworks Used: GRI Standards, AA1000 Accountability Principles, Taiwan Stock Exchange's Listed and Over-the-Counter Companies' Corporate Social Responsibility Best Practices, ISO 26000, UN Global Compact, UN Sustainable Development Goals

Certifications: ISO 14001:2015, ISO 14064-1:2018, ISO 27001

Third-party Assurance: BSI British Standards Institution

UN Sustainable Development Goals

  • Goal 1
  • Goal 2
  • Goal 4
  • Goal 5
  • Goal 6
  • Goal 7
  • Goal 8
  • Goal 9
  • Goal 10
  • Goal 11
  • Goal 12
  • Goal 13
  • Goal 16
  • Goal 17

The report maps various initiatives to the UN SDGs, but does not provide a detailed explanation for each goal.

Sustainable Products & Innovation

  • Public benefit identification cards.
  • Microloans for economically disadvantaged groups through the "Impact Project."

Awards & Recognition

  • Certified B Corporation
  • 天下企業公民獎 (CommonWealth CSR Awards)
  • 台灣企業永續獎 (Taiwan Corporate Sustainability Awards)
  • Buying Power social innovation enterprise product and service procurement incentive mechanism awards

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:3463.313 tCO2e/year (Taiwan locations)
Renewable Energy Share:0% (2021), target 50% by 2030, 100% by 2050 (Taiwan locations)
Total Energy Consumption:5,522,059 kWh/year (Taiwan locations)
Water Consumption:15.663 megaliters/year (Taiwan locations)
Waste Generated:96.55 tons/year (headquarters and affiliates)
Carbon Intensity:8.2 tCO2e/NT$ million (corporate lending), 19.7 tCO2e/NT$ million (investments)

ESG Focus Areas

  • Corporate Governance
  • Customer Relationships
  • Employee Care
  • Environmental Protection
  • Social Engagement
  • Green Finance

Environmental Achievements

  • Power usage per employee at business locations throughout Taiwan were down by 6.2% year-on-year, and water usage per employee was down by 10.9% year-on-year.
  • Greenhouse gas inventory coverage ratio of 100%
  • Adopted an ISO 50001 energy management system
  • Pledged to achieve net zero CO2 emissions at all business locations by 2050, and adopted science-based targets (SBTs).

Social Achievements

  • Launched the "O-Star Elite Employee Development Program" to identify outstanding in-house employees and develop their talents.
  • O-Bank Social Impact program, first of its kind in Taiwan, won the 2021 Global Corporate Sustainability "Great Practice Award" in the World Class category.
  • Support for 27 students from underprivileged backgrounds
  • 1,206 young artists benefit from "Stars of Tiding" art advocacy project

Governance Achievements

  • Scored among the top 5% in the Taiwan Stock Exchange's "2021 Corporate Governance Evaluation"
  • Awarded an "excellent performance" certification by the Taiwan Corporate Governance Association under the CG6012 (2019) Corporate Governance System Assessment.
  • Board members took part in 128 hours of ongoing professional development
  • Completed first outside evaluation of board of directors performance, adopted an improvement plan, and submitted it to the board of directors for approval.

Climate Goals & Targets

Long-term Goals:
  • Reduce power usage per capita by 6% by 2030
  • Reduce water usage per capita by 8% by 2030
  • Reduce waste per capita by 1% by 2030
  • Achieve net zero CO2 emissions by 2050
Medium-term Goals:
  • Reduce power usage per capita by 4.5% by 2025
  • Reduce water usage per capita by 5% by 2025
  • Reduce waste per capita by 0.7% by 2025
Short-term Goals:
  • Reduce power usage per capita by 3% by 2023
  • Reduce water usage per capita by 3% by 2023
  • Reduce waste per capita by 0.5% by 2023

Environmental Challenges

  • COVID-19 pandemic impacted business operations and customer repayment abilities.
  • Supply chain disruptions
  • Climate change risks (physical and transition risks)
Mitigation Strategies
  • Launched a Preferential Loan Program for B Corporations and Social Enterprises, and provided individual customers with loan repayment deferrals as well as interest rate reductions.
  • Incorporated ESG risk factors into credit management procedures.
  • Formally signed on to the Equator Principles.
  • Completed identification and inventorying of carbon-intensive industries.
  • Adopted risk management measures to address climate-related risks (see section 3.4.2).

Supply Chain Management

Supplier Audits: 42 self-assessments (100% of required), 9 on-site visits (180% of required)

Responsible Procurement
  • Prioritization of green suppliers
  • Use of "O-Bank Supplier Self-Assessment Form Regarding Fulfillment of Corporate Social Responsibilities"
  • Green Mark products where possible

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events impacting business operations
  • Damage to real estate collateral
  • Impacts on carbon-intensive industries
Transition Risks
  • Sector stigmatization
  • Regulatory changes
  • Market shifts
Opportunities
  • Improved ESG ratings
  • Increased financial asset diversification
  • New revenue streams from green finance

Reporting Standards

Frameworks Used: GRI Standards (2016): Core option, AA1000 AccountAbility Principles (AA1000AS v3), SASB standards for commercial banks and consumer finance, Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies, ISO 26000, UN Global Compact, UN Sustainable Development Goals

Certifications: ISO 14001:2015, ISO 14064-1:2018, ISO 50001:2018, B Corp Certification

Third-party Assurance: British Standards Institution (BSI), Deloitte Taiwan

UN Sustainable Development Goals

  • 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)

Initiatives contribute to these goals through various environmental, social, and governance programs.

Sustainable Products & Innovation

  • Charity affinity cards
  • Low-Carbon Lifestyle Debit Card
  • Consumer Spending Carbon Calculator

Awards & Recognition

  • Numerous awards for CSR, sustainability, and digital innovation (see section 2.2.2)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:3,025 tonnes of CO2e

ESG Focus Areas

  • Corporate Governance
  • Customer Relationships
  • Employee Care
  • Environmental Protection
  • Social Engagement
  • Green Finance

Environmental Achievements

  • Power usage per employee at business locations throughout Taiwan was down by 11.78% year-on-year, and water usage per employee was down by 15.08% year-on-year.
  • Expanded ISO 14001 environmental management system. The scope of certification covers all business locations throughout Taiwan.
  • Kitchen Waste Recycling Program at the O-Bank headquarters building.
  • Greenhouse gas inventories now cover 100% of O-Bank's business locations throughout the world, and newly cover Scope 3 emissions.
  • Pledged to achieve net zero emissions at all business locations by 2050

Social Achievements

  • Launched 3 new charity affinity cards in 2022, bringing the total number of such cards to 17.
  • Launched a Preferential Loan Program for B Corporations and Social Enterprises.
  • Provided individual customers with loan repayment deferrals as well as interest rate reductions.
  • Many services normally handled at service counters are now handled via video customer service.
  • Same-sex spouses receive equal benefits.
  • O-Bank leave benefits exceed statutory requirements.
  • Care for Pregnant Employees (fresh milk, consultations, breastfeeding rooms, health education).
  • Support for 36 students from underprivileged backgrounds (Summer Seed Internship Program).
  • 1,243 young artists benefit from "Stars of Tiding" art advocacy project.
  • O-Bank Social Impact program, first of its kind in Taiwan

Governance Achievements

  • Scored among the top 5% of listed companies in the Taiwan Stock Exchange's "2022 Corporate Governance Evaluation."
  • Awarded an excellent performance certification by the Taiwan Corporate Governance Association under the CG6012 (2019) Corporate Governance System Assessment.
  • Board members take part in 135 hours of ongoing professional development.
  • Maintained ISO 27001 certification for our information security management system.

Climate Goals & Targets

Long-term Goals:
  • Achieve net-zero emissions by 2050.
  • Renewable energy will account for 100% of power consumption at all global business locations by 2050.
Medium-term Goals:
  • Achieve net-zero emissions by 2050.
  • Renewable energy will account for 50% of power consumption at all global business locations by 2030.
Short-term Goals:
  • Reduce power usage per employee by 2%, and water usage per employee by 2% (baseline year 2020).

Environmental Challenges

  • Global economic volatility, inflation, and supply chain disruptions.
  • Climate change and net-zero emissions goals.
  • ESG measures taken by financial services firms.
Mitigation Strategies
  • Incorporated ESG risk factors into corporate credit review procedures and investment decision-making procedures.
  • Formally signed on to the Equator Principles.
  • Joined the Partnership for Carbon Accounting Financials (PCAF).
  • Completed scenario analysis of climate risks.
  • Introduced Taiwan's first "Consumer Spending Carbon Calculator."
  • Pledged that renewable energy will account for 50% of power consumption at all global business locations by the year 2030, and 100% by the year 2050.

Supply Chain Management

Supplier Audits: 60 suppliers filled out a Self-Assessment Form in 2022. O-Bank visited five suppliers in 2022.

Responsible Procurement
  • Supplier Self-Assessment Form Regarding Fulfillment of Corporate Social Responsibilities

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, AA1000 AccountAbility Principles, SASB standards for commercial banks and consumer finance, Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies, Taiwan Stock Exchange Corporation Rules Governing the Preparation and Filing of Sustainability Reports by TWSE Listed Companies, ISO 26000 Guidance on Social Responsibility, International Integrated Reporting Council's Integrated Reporting Framework, UN Global Compact disclosure guidelines, UN Sustainable Development Goals

Certifications: ISO 27001, ISO 14001:2015, B Corp Certification

Third-party Assurance: British Standards Institution, Deloitte Taiwan

Sustainable Products & Innovation

  • Consumer Spending Carbon Calculator
  • Low-Carbon Lifestyle Debit Card

Awards & Recognition

  • Numerous awards listed in Table 2-2

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:2758.66 tCO2e/year
Renewable Energy Share:12.84%

ESG Focus Areas

  • Corporate Governance
  • Customer Relationships
  • Employee Care
  • Environmental Protection
  • Green Finance
  • Social Engagement

Environmental Achievements

  • 2023 total greenhouse gas emissions (Scope 1 and Scope 2) declined approximately 11.19% from the previous year, and per capita carbon emissions fell by 18.53%
  • Renewable energy usage reached 12.84% in 2023
  • Green purchasing amount increased by 153% compared to the previous year
  • O-Bank’s Headquarters building was awarded Bronze-level Green Building Certification
  • Introduced Taiwan's first "Consumer Spending Carbon Calculator"
  • Pledged to achieve net zero emissions at global business locations by 2050

Social Achievements

  • Launched the "Social Impact Program", providing microloans to economically disadvantaged and disabled groups
  • Launched “O for YOU Assistance Savings” project, providing savings with tiered interest rate incentives to the economically disadvantaged and physically disabled
  • Received a "Buying Power" Award for the 7th consecutive year for purchasing products from social enterprises
  • Support for 42 students from underprivileged backgrounds through the Summer Seed Internship Program
  • Nurtured 1,290 young artists with "Stars of Tiding" art advocacy project
  • Women accounted for 41% of management, 44% of executive-level management, and 55.7% of all promotions
  • Same-sex spouses receive equal benefits

Governance Achievements

  • Established a "Board Sustainability Committee" governed by the Board of Directors
  • Obtained B Corp certification
  • Maintained ISO 27001 certification for information security management system
  • Passed third-party certification for ISO 45001 Occupational Health and Safety Management System
  • Directors completed a combined total of 158 hours of professional development courses
  • Comprehensive disclosure of board compensation

Climate Goals & Targets

Long-term Goals:
  • We will continue to increase the positions of financing and investments that provide environmental and/or social benefits, and reduce the amount of financing and investments that go to carbon- intensive industries, in order to carry out responsible lending and responsible investing
  • Achieve net zero emissions in our own operations by 2050
  • Strengthen care and services designed to ensure social & economic security for underprivileged groups
Medium-term Goals:
  • Pursue low power-consumption in our operations, and collaborate with upstream and downstream firms in industry value chains to promote environmental protection policies
  • Work to meet the Scope 1 and Scope 2 greenhouse gas emission reduction targets that are set based on the Science Based Targets initiative (SBTi), and steadily increase our reliance on renewable energy year by year. We have pledged to achieve net zero emissions in our own operations by 2050
  • Attract and develop professional talent, create organizational competitiveness, and build a positive corporate culture from top to bottom
Short-term Goals:
  • Increase reliance on renewable energy to 10% in 2023 at O-Bank business locations worldwide
  • Increase the share of the Bank's total balance of credit provided to sectors friendly to the environment or society to 6.75% in 2023
  • Reduce total Scope 1 and Scope 2 carbon emissions at business locations throughout the world in 2023 by 10% from 2022

Environmental Challenges

  • Global economic volatility
  • Geo-economic conflict
  • Network insecurity
Mitigation Strategies
  • Accelerate steps to build up our overseas presence to disperse regional risks
  • Use a diversified range of investments, enhance liquidity management, increase risk management sensitivity, and optimize asset/liability structure
  • Make the content of information security training more diverse, address emerging techniques such as social engineering and deepfakes

Supply Chain Management

Supplier Audits: 60 suppliers filled out a Self-Assessment Form in 2023; 6 suppliers visited

Responsible Procurement
  • Supplier Self-Assessment Form of Corporate Social Responsibilities

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Flooding
Transition Risks
  • Regulatory changes
  • Market shifts

Reporting Standards

Frameworks Used: GRI Standards (2021), AA1000 AccountAbility Principles, SASB standards for commercial banks and consumer finance, Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies, Taiwan Stock Exchange Corporation Rules Governing the Preparation and Filing of Sustainability Reports by TWSE Listed Companies, ISO 26000 Guidance on Social Responsibility, International Integrated Reporting Council's Integrated Reporting Framework, UN Global Compact disclosure guidelines, UN Sustainable Development Goals

Certifications: B Corp, ISO 27001, ISO 45001

Third-party Assurance: BSI SG Taiwan Branch and Ernst & Young Taiwan

UN Sustainable Development Goals

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

O-Bank's short-term, mid- and long-term sustainability strategies are linked to the SDGs.

Sustainable Products & Innovation

  • Consumer Spending Carbon Calculator
  • Low-Carbon Lifestyle Debit Card
  • Green Transport Calculator
  • Social Impact Deposits
  • Personal green loans and green mortgages

Awards & Recognition

  • Numerous awards from Taiwan Institute for Sustainable Energy, Gartner, Asian Banker Taiwan Awards, CommonWealth Magazine, Global Views Monthly, National Brand Yushan Awards, Financial Supervisory Commission, Taiwan Stock Exchange, Excellence magazine, Commercial Times, and others