Taishin FHC Corporate Social Responsibility Report 2019

8 About Taishin 0 Economic Economic Environmental Social Supplier procurement Revenues and expenditures Greenhouse gas emissions (GHG) Waste disposal Employee care development Occupational incident Health promotion Water use Investment activities Supplier procurement Investment activities Socioeconomic Contribution Social cost of carbon Damage to human health Socioeconomic Contribution Socioeconomic Contribution Social cost of lost working hours Avoid medical cost of illness Social cost of carbon Damage to human health In 2019 we generated higher economic benefits than the previous year. Overall, each unit of investment leads to 2.4 times of its investment value along the industry chain. Inadditiontocontinuingto promote variousenergy-savingand carbon-reducing operations and improvements, we have formulated multiple action plans for air-conditioning, lighting and equipment on server room to minimize the energy consumption impact to environment. Taishin FHC will continue to analyze what investment portfolios may reduce external environmental cost and will assume a leading role in expanding the sustainable investment effects of the financial industry. Socioeconomic contributions to growth along the value chain Social cost of carbon reduce from own operations Environmental external cost coming from downstream investment Environmental Upstream/ Downstream Own Operations Boundary Category Operation External impact Methodological description Reference The results of Taishin’s 2016-2019 impact valuation measurements 99 % -17 % 12 % Upstream/Supplier Downstream/Investment Own operation Social Economic Economic Economic Economic:Procurementcreates theeconomicvalue fromthe industrychain Environmental:Greenhousegas,air andwaterpollution,waste Economic: Industrial investment createstheeconomicvalue Environmental:Greenhousegas, airand waterpollution,waste Economic:Revenues,employeesalary,dividend, tax,depreciation Environmental:wateruse,greenhousegas,waste Social:occupational incident,employeecare development,healthpromotion Environmental Environmental Environmental Y17 Y16 Y17 Y18 Y19 Y16 Y17 Y18 Y19 Y16 Y17 Y18 Y19 Y16 Y17 Y18 Y19 58 -3 -1.5 -1.7 -1.2 -0.2-0.2 -0.4 -0.4 34 36 26 312 344 356 390 28 31 -342 -327 -406 -439 32 46 7274 7629 8467 9478 Unit: TWD 100 million Y17 Y16 Y17 Y18 Y19 Y16 Y17 Y18 Y19 Y16 Y17 Y18 Y19 Input-output analysis is used to assess the indirect economic value created by the mutually dependent procurement and investment activities along the industrial chain. The external cost per unit of pollutants in our own operations is used to estimate the greenhouse gases emitted by the supply chain and environ - mental impacts such as water pollution (COD), waste (incineration), and air pollution (PM2.5, NOx, SOx, NMHC, Pb). Upstream/Downstream social externalities are not included in the assessment, as such data is not easy to obtain. In order to evaluate the social and economic benefits created by the operational activities for the stakeholders, we also consider salaries (employees), dividends (shareholders/investors), taxes (government), depreciation (suppliers), and other expenses as positive economic value in addition to revenue. Our assessment includes both damage to human health and potential social cost from water use, greenhouse gas emissions, waste incineration and disposal to landfill, but excludes degradation of ecosystem quality and resource depletion. Due to the wide scope of the social aspect and the immaturity of the methodologies to assess most of those issues, only the social cost from occupational incidents, economic contributions from employees’ career development, and health promotion activities that reduce employees’ abnormal health risks are taken into consideration. US EPA (2016) ReCiPe (2016) UNEP/SETAC (2017) PWC UK (2015) Environmental Protection Administration (2017) USEtox (2017) Jiune-Jye Ho (2005) Chieh-Hsien Lee (2009) WHO (2008) Directorate-General of Budget, Accounting and Statistics (2015) Directorate-General of Budget, Accounting and Statistics (2017) Bureau of Energy (2012) US EPA (2016) UNEP/SETAC (2017) PWC UK (2015) Taishin FHC annual report