台新新光金控

Climate issues bring various challenges for businesses. In response to future de[1]mands for climate risk management, Taishin has taken practical actions to ensure "environmental sustainability" in its operations and the "net zero carbon emissions" in its financial business. Net zero is now a global issue and it is the responsibility and mission of all companies. In order to more actively implement net zero, We became a member of the Taiwan Net-Zero Emissions Association in 2021. Taishin FHC further reinforced our climate commitment to the Science Based Targets – Net Zero (SBT net zero) in 2023, with 2050 as the comprehensive long-term target year of net zero.

In 2022, we set our emissions reduction targets based on the Science-Based Targets (SBT) pathway, with our targets validated by the Science Based Targets initiative (SBTi) to launch carbon emission reduction actions for its operation in scope 1, 2, and across important asset categories for investment and financing in scope 3. In terms of Scope 1 and Scope2, the greenhouse gas reduction strategy is set to limit the increase in temperature within 1. 5°C, and the target is set to reduce carbon emissions by 46% compared with the base year of 2019 by 2030, which is equivalent to an annual carbon reduction of 4.2%; In terms of Scope 3, 2019 is also the base year for the reduction targets of financing and investment positions by well below 2°C scenario. We plan to submit our net-zero targets for validation once the SBT Net-Zero Standards for financial institutions is officially released by SBTi.

Taishin made its focus on "Dedicated to Sustainability & Living Green" and strongly advocates "From Zero to Hero"- everyone can be a hero in helping resolving the climate crisis. We actively take the following actions to ensure net zero emissions for our own operations:

Taishin has adopted 2019 as the base year for our SBTi-approved emission reduction targets across our investment and financing positions. Short-term target years are set for either 2027 or 2030 respectively depending on the asset type or industry. The long-term (net zero) target year is set for 2050, with accelerated targets for sectors such as coal related or unconventional oil & gas industries, which are more aggressively to achieve net zero for 2030 or 2040. For short-term targets, we started to gradually reduce emissions year by year according to the plan. We hope to encourage investment and financing counterparties to join the carbon reduction and transition efforts for lowering the impact of transition risk. For long-term targets, Taishin committed the SBT Net Zero in 2023 and will follow the net zero pathway (anticipated to set 2024 as the base year and aiming to submit our net zero targets to SBTi by 2026) , we will follow the net zero pathway and the framework of carbon management of financial assets to set decarbonization strategies and various low carbon investment and financing plans in order to achieve net zero by 2040 or 2050.

In terms of financing for the power generation industry, Taishin Bank is the first bank in Taiwan of power plant financing portfolio with 100% in renewable energy, and has divested 100% of its finance in zero coal power. At the same time, SBT's 2030 target for power generation-related loans has achieved ahead of schedule.

Through consultation with external experts and the opinions of Taishin FHC's internal industry economic experts, in addition to our early commitments in 2022 that there would be no new financing for coal mines and no new project financing for coal-fired power plants; from 2025, no new investment and financing in the coal industry will be allowed, and by the end of 2025, all financing for coal mining will be globally phased out. For the unconventional oil & gas industry, timelines have been scheduled for ceasing new investments and phasing out existing exposures. These actions form part of Taishin FHC's decarbonization strategy and reflect our commitment to supporting global divestment efforts.