Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Customer Care
• Employee Care
• Social Welfare
• Environmental Protection

Environmental Achievements

• Reduced carbon emissions by 1.23% compared to 2010 (153.40 tons reduction)
• Recycled 55,125 kilograms of paper (4.46% increase over 2010)
• Recycled 1,330 kilograms of plastic bottles (5.47% increase over 2010)
• Implemented green procurement practices, increasing spending by 61.04% to NT$77.4 million

Social Achievements

• Launched the "Poverty Alleviation Program", providing microloans and support to disadvantaged families
• Maintained a diverse workforce with 60% women in bank branch management positions
• Provided parental leave and childcare subsidies to 1,004 employees (NT$12.40 million)
• Held various employee wellbeing initiatives, including health lectures and employee clubs

Governance Achievements

• Established the Risk Management Committee
• Achieved 80% external and independent directors on the board
• Received numerous awards for corporate governance and CSR

Climate Goals & Targets

Environmental Challenges

• Climate change risks (natural disasters impacting loan customers and insurance claims)
• Need to further strengthen internal controls regarding information disclosure

Mitigation Strategies

• Established the Risk Management Committee and Core Risk Management Policy
• Implemented measures to improve information disclosure and address delays

Supply Chain Management

Supplier Audits: 56 businesses audited in 2011

Responsible Procurement

• Green procurement practices
• Supplier code of conduct emphasizing business ethics, employee rights, and environmental protection

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters impacting loan customers and insurance claims

Reporting Standards

Frameworks Used: GRI G3.1, AA1000AS (2008)

Certifications: ISO 9001

Third-party Assurance: British Standards Institution (BSI)

Awards & Recognition

• CommonWealth – Top 10 in Taiwan’s Top Corporate Citizens 2011
• Taiwan CSR Bronze Award
• Corporate Governance Asia - Asian Excellence Recognition Awards 2011
• FinanceAsia awards
• The Asset Platinum Award
• Asiamoney’s Corporate Governance Poll 2011 awards

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Environmental Sustainability
• Employee Welfare
• Customer Service
• Community Engagement

Environmental Achievements

• Reduced annual electricity consumption by 2% from 2017 baseline for three years, totaling 1.72 million kWh reduction.
• Achieved 35% waste reduction in 2019 (exceeding the 2% target).
• CTBC Financial Park received LEED v4.1 certification and LEED Dynamic Plaque.
• Approximately NT$86 billion in renewable energy project financing in 2019.
• Green procurement exceeded NT$260 million in 2019.

Social Achievements

• Launched WIN TONE+ step-counting app, with 2,800 active users by the end of 2019.
• Customer satisfaction survey showed 86% average satisfaction rate.
• Over NT$7 billion in donations and sponsorships.
• CTBC Poverty Alleviation Program issued over NT$140 million in loans over eight years, with 45 applications approved in 2019.
• Love & Arts for Dreams Initiatives generated NT$4.18 of social value for every NT$1 invested.

Governance Achievements

• Maintained Board diversity with a majority of independent directors (4 of 7).
• Strengthened corporate governance by amending key policies.
• Adhered to UN Principles for Responsible Investment (PRI), Principles for Sustainable Insurance (PSI), and Principles for Responsible Banking (PRB).
• CTBC Bank became an Equator Principles signatory.
• Established a Company Governance Supervisor.

Climate Goals & Targets

Environmental Challenges

• Global economic instability due to the US-China trade war and US interest rate hikes.
• Price competition and transformation of banking operations.
• Climate change risks (physical and transition risks).
• Information security threats.

Mitigation Strategies

• Developed strategies to address climate change financial impacts (TCFD framework).
• Implemented environmental management (ISO 14001), energy management (ISO 50001), and greenhouse gas emissions management (ISO 14064) standards.
• Strengthened risk management framework and internal control systems.
• Implemented information security incident drills.
• Developed alternative sourcing strategies (not explicitly stated, but implied).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Green procurement exceeding NT$260 million in 2019.
• Supplier code of conduct emphasizing employee rights, environmental protection, and ethical standards.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (typhoons, torrential rainfall, droughts)
• Sea level rise

Transition Risks

• Increases in carbon pricing
• Increased climate change-related regulations
• Expenditure or technology development failure in low-carbon transformation

Opportunities

• Development of energy-efficient products and services
• Green finance
• Renewable energy investments

Reporting Standards

Frameworks Used: GRI Standards (Core option), SASB disclosure standards for commercial banks, AA1000 standard, TCFD framework

Certifications: ISO 14001, ISO 50001, ISO 14064-1, ISO 27001

Third-party Assurance: British Standards Institution (BSI)

UN Sustainable Development Goals

• SDG 1: No Poverty
• SDG 2: Zero Hunger
• SDG 3: Good Health and Well-being
• SDG 4: Quality Education
• SDG 8: Decent Work and Economic Growth

Initiatives aligned with these SDGs are described throughout the report.

Sustainable Products & Innovation

• Green loans
• Green bonds
• Sustainable investment products
• Climate/green insurance products

Awards & Recognition

• CDP Leadership A- rating
• UN Clean Energy Ministerial Award of Excellence in Energy Management
• The Asset’s ESG Corporate Awards (Platinum award, Best Initiative in Social Responsibility, Best CEO)
• Taiwan Corporate Sustainability Awards (Social Inclusion Award)

Environmental Metrics

ESG Focus Areas

• Responsible Operations
• Sustainable Growth
• A Connected Society
• Corporate Governance
• Environmental Sustainability
• Employee Welfare
• Customer Service
• Community Engagement

Environmental Achievements

• Reduced electricity consumption by 1.73 million kWh or 2.46% from 2017 at CTBC Bank operating sites.
• Reduced water consumption by 1.76% from 2017.
• Green procurement exceeding NT$560 million in 2020.

Social Achievements

• 148 employees (over 75%) returned to work after unpaid parental leave; provided NT$17,497,898 in maternity subsidies.
• Over NT$710 million in social investments.
• Over NT$163 million under the CTBC Poverty Alleviation Program, with 42 approved loans totaling NT$21 million in 2020.
• Partnered with global microfinance institutions to provide microloans abroad, with US$98 million dispersed in 2020.

Governance Achievements

• Became the first financial holding company in Taiwan to have independent directors comprise more than half of its Board members.
• 100% completion rate for AML/CFT education and training.
• 100% reporting rate for material penalties.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on global economy and business operations.
• Climate change risks (transition and physical risks).

Mitigation Strategies

• Implemented disease prevention and response measures.
• Integrated climate change risks into ERM.
• Joined PCAF and adopted its methodologies.
• Developed business continuity plans and conducted disaster prevention drills.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Prioritization of environmentally friendly products and technologies.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather (torrential rainfall and flooding/drought)
• Long-term rise in average temperature

Transition Risks

• Policy and regulation changes
• Technological changes
• Market shifts
• Reputational risks

Opportunities

• Green buildings
• Renewable energy financial products
• Smart grid/electric vehicle infrastructure
• Urban renewal projects

Reporting Standards

Frameworks Used: GRI Standards (Core option), International Integrated Reporting Council (IIRC) framework, SASB standards for commercial banks, TCFD recommendations

Certifications: ISO 14001, ISO 50001, ISO 14064-1, ISO 27001, BS 10012

Third-party Assurance: PricewaterhouseCoopers, Taiwan (PwC Taiwan)

UN Sustainable Development Goals

• SDG 1: No Poverty
• SDG 2: Zero Hunger
• SDG 3: Good Health and Well-being
• SDG 4: Quality Education
• SDG 8: Decent Work and Economic Growth
• SDG 11: Sustainable Cities and Communities
• SDG 17: Partnerships for the Goals

Initiatives aligned with SDGs through various community investment programs, sustainable finance, and employee welfare programs.

Sustainable Products & Innovation

• Green and sustainability bonds
• Financial inclusion products (reverse mortgage, preferential housing loans)
• Microloans

Awards & Recognition

• Dow Jones Sustainability Indices World Index constituent stock
• MSCI ESG Leaders Indexes AA rating
• FTSE4Good Emerging Index constituent stock
• Taiwan Corporate Sustainability Awards
• Asia's Best CSR award
• Jade Award for excellence in ESG
• UN Clean Energy Ministerial Award of Excellence in Energy Management

Environmental Metrics

ESG Focus Areas

• Responsible Operations
• Sustainable Growth
• A Connected Society

Environmental Achievements

• Reduced electricity consumption by 1.55 million kWh (2.16%) from 2021 at CTBC Financial Park and CTBC Bank
• Achieved a 22.49% waste recycling rate at CTBC Financial Park
• Launched ALL ME credit card made from recycled marine debris (50,000 cards issued)
• Obtained ISO 14067 carbon footprint verification for credit cards and online financial services

Social Achievements

• Selected as a constituent stock of the Bloomberg Gender-Equality Index for the second consecutive year
• Named one of the Best Companies to Work for in Asia by HR Asia for the fifth consecutive year
• 37th Light Up a Life campaign raised NT$155 million (NT$2.56 billion cumulatively)
• Home Run Readers project yielded NT$8.99 of social value for every NT$1 invested
• Cumulative service by corporate volunteers exceeded 168,000 hours, benefiting more than 106,000 underprivileged children.

Governance Achievements

• Maintained a majority of independent directors on the Board
• Ranked among the top 6%–20% of performers in the 9th Corporate Governance Evaluation by the Taiwan Stock Exchange
• Awarded Corporate Governance System Assessment CG6013 (2021) certification with the highest rating (Outstanding)

Climate Goals & Targets

Environmental Challenges

• Market fluctuations and the pandemic affected profitability
• Significant epidemic prevention insurance claims payouts impacted Taiwan Life's profits
• Supply chain disruptions due to climate events (implied)

Mitigation Strategies

• Implemented effective ESG governance and risk management
• Developed new risk management and risk warning mechanisms
• Strengthened product design, risk control, and process optimization at Taiwan Life
• Developed alternative sourcing strategies (implied)

Supply Chain Management

Supplier Audits: 131 suppliers completed sustainability risk self-assessment survey

Responsible Procurement

• Supplier sustainability requirements
• Supplier risk investigations
• Supplier conference to discuss sustainable procurement strategies

Climate-Related Risks & Opportunities

Physical Risks

• Increased floods
• Increased droughts
• Rising average temperature

Transition Risks

• Increased carbon emissions costs
• Increased sustainability-related regulations
• Increased expenditure on transition costs
• Decrease in carbon-intensive products
• Increased negative feedback from stakeholders

Opportunities

• Promoting low-carbon products and services
• Focusing on green energy
• Enhancing climate resilience

Reporting Standards

Frameworks Used: GRI Universal Standards 2021, GRI G4 financial service sector disclosures, IIRC Integrated Reporting framework, SASB standards for commercial banks, Sustainable Development Best Practice Principles for TWSE Listed Companies, ISO 26000 Social Responsibility Guidelines, UN Global Compact

Certifications: ISO 50001, ISO 14001, ISO 14064-1, ISO 45001, ISO 27001, BS 10012, ISO 9001

Third-party Assurance: Ernst & Young (limited assurance); SGS Taiwan Ltd. (materiality analysis process)

UN Sustainable Development Goals

• SDG 1
• SDG 2
• SDG 3
• SDG 4
• SDG 8
• SDG 7
• SDG 13
• SDG 17

The report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

• ALL ME credit card
• ESG funds
• Green loans
• Sustainability-linked loans

Awards & Recognition

• Dow Jones Sustainability Index constituent stock
• MSCI Taiwan ESG Leaders Index constituent stock
• Bloomberg Gender Equality Index constituent stock
• Greater China Business Sustainability Index (ranked first among Taiwanese financial companies)
• The Banker Top 1000 World Banks (ranked No. 158)
• The Asset's 2022 Sustainable Infrastructure Awards
• Taiwan Banking and Finance Best Practice Awards
• The Asian Banker Achievement in Climate Risk Management in Asia Pacific

Environmental Metrics

ESG Focus Areas

• Responsible Operations
• Sustainable Growth
• A Connected Society

Environmental Achievements

• Received SBTi approval of emissions reduction goals, becoming the financial institution in Taiwan with the most overseas branches with SBTi-approved targets
• CTBC Financial Park attained the highest-possible LEED O+M v4.1 Platinum certification and EEWH Diamond Certification
• Green electricity purchased reached 9.6 million kWh
• Green procurement exceeded NT$1.59 billion, accounting for 7.93% of all procurement spending

Social Achievements

• Again selected as a constituent stock of the DJSI World Index and Taiwan Sustainability Index
• The 38th edition of the Light Up a Life fundraiser raised NT$161 million
• Anti-drug advocacy efforts reached 204,992 people
• The CTBC Arts Festival attracted 5,487 participants
• Over 50% of the employees and managers are women

Governance Achievements

• Again selected as a constituent stock of the DJSI World Index and Emerging Index
• Served as the inaugural rotating Chair of the Coalition of Movers and Shakers on Sustainable Finance
• Published the 2022 Nature-related Financial Disclosure Report, following the Taskforce on Nature-related Financial Disclosures (TNFD) framework
• Published 2022 Principles for Responsible Banking Report, following the U.N. Environment Programme Finance Initiative’s (UNEP FI) Impact Analysis Tool framework
• Published 2021-2022 Impact Investment Report, following the Global Impact Investing Network’s (GIIN) IRIS+ framework

Climate Goals & Targets

Environmental Challenges

• Global economic uncertainties including inflationary pressure, higher interest rates, China's economic struggles, and geopolitical tensions
• Climate-related physical risks (e.g., extreme weather events)
• Climate-related transition risks (e.g., regulatory changes, market shifts)
• Supply chain disruptions

Mitigation Strategies

• Robust risk management framework and three lines of defense control mechanism
• Implementation of low-carbon operations and renewable energy adoption
• Development of alternative sourcing strategies
• ESG integration into investment and financing decisions
• Collaboration with ITRI on carbon reduction solutions

Supply Chain Management

Supplier Audits: 168 suppliers attended the 2023 Supplier Conference

Responsible Procurement

• Supplier Management Principles
• Green Procurement Principles
• Supplier Human Rights and Environmental Sustainability Commitment
• Prioritization of local suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products and services
• Growth of renewable energy financing

Reporting Standards

Frameworks Used: GRI Universal Standards 2021, GRI G4 financial service sector disclosures, SASB, TCFD, TNFD, UNGC, Sustainable Development Best Practice Principles for TWSE Listed Companies, ISO 26000

Certifications: ISO 14001, ISO 50001, ISO 14064-1, ISO 45001, ISO 27001, ISO 9001, BS 10012, LEED

Third-party Assurance: KPMG, SGS Taiwan

UN Sustainable Development Goals

• SDG 1: No Poverty
• SDG 7: Affordable and Clean Energy
• SDG 8: Decent Work and Economic Growth
• SDG 13: Climate Action
• SDG 14: Life Below Water
• SDG 17: Partnerships for the Goals

Initiatives contributing to these goals are described throughout the report

Sustainable Products & Innovation

• Green loans
• Sustainability-linked loans
• ESG funds
• Green insurance products
• Recycled plastic bottle courtesy umbrellas

Awards & Recognition

• Dow Jones Sustainability Index (DJSI) World Index, DJSI Emerging Markets Index, MSCI Taiwan ESG Leaders Index, S&P Sustainability Yearbook, Asia-Pacific Sustainability Action Awards, Taiwan Corporate Sustainability Awards, Greater China Business Sustainability Index, HR Asia's Best Companies To Work For In Asia awards, Universum's best employer awards, The Asset Triple A Digital Awards, Gartner's Eye on Innovation Awards