To stay current with sustainability developments across the world and in line with SDG 17 Partnerships for the Goals, CTBC Holding actively participates in international initiatives. As early as 2012, for example, we signed on to the CDP. We also became the first company in Taiwan to join the Taskforce on Nature-related Financial Disclosures (TNFD) in February 2022. In addition, we voluntarily joined global benchmark enterprises in formulating the first version of its standards. We hope to reduce the negative effects of our businesses on the natural environment through relevant engagements, and to realize our responsibilities in preserving natural ecology. In addition, we continue to serve as the Asia-Pacific chair of the Partnership for Carbon Accounting Financials (PCAF), guiding our peers in the finance industry to co-create a sustainable financing ecosystem.

In support of our 2050 net-zero policy and to promote sustainable development, CTBC Holding, E.SUN Financial Holding, Yuanta Financial Holdings, First Financial Holding, and Cathay Holdings answered the call from the FSC to formulate the Coalition of Movers and Shakers on Sustainable Finance in September 2022. CTBC Holding serves as the chair of the coalition in 2023 as well as the convener of its Data and Risk Control Working Group. Through our participation, we hope to proactively leverage our impact as an industry leader in the five major sustainable issues of green procurement, funding and engagement, information disclosure, assistance and promotion, and international outreach, thereby driving the entire financial industry to achieve sustainable development.

As one of Taiwan's most highly regarded business leaders and the country's first entrepreneur to be appointed an Ambassador-at-Large, late CTBC Holding founder Dr. Jeffrey Koo, Sr. helped to establish various international economic and trade organizations, integrate domestic industrial and commercial sectors, and advance international economic and trade cooperation. Koo boasted exceptional accomplishments in promoting Taiwan's substantive diplomacy as well as enhancing awareness of Taiwan's economic and financial success. As a result of these efforts, we successfully lobbied for the Confederation of Asia-Pacific Chambers of Commerce and Industry and the Asian Bankers Association to headquarter their secretariats in Taipei City.

We also assist in the management of young and second-generation entrepreneurial associations, including The Third Wednesday Club, and the formation of alliances to encourage international trade. Through such efforts, CTBC Holding still upholds the spirit of economic and trade diplomacy promoted by Koo and continues to actively participate in key economic and trade organizations, including those below:

We implement our sustainable supply chain strategy across three dimensions: business ethics, environmental protection, and employee rights and welfare. We require our suppliers to prioritize CSR, ethical management, integrity, caring for and protecting the interests of employees, and upholding human rights without discrimination. CTBC Holding and our subsidiaries prioritize the use of materials and equipment that are environmentally friendly, such as those with green energy or power-saving labels, in order to reduce the impact on the environment. We strive to increase our number of green purchases and total green procurement expenditure every year. In 2023, CTBC Holding will establish Green Procurement Principles for it and subsidiaries to follow and to encourage participation by our partners. We will continue to uphold the spirit of sustainable management and move toward sustainable development together with our suppliers.

In order to implement environmentally sustainability and fulfill its corporate social responsibility, CTBC Holding has formulated Supplier Management Principles, which outlines the principles and directions for the selection and management of suppliers by both CTBC Holding and its subsidiaries. It states that the supplier selection process should consider whether vendors comply with human rights protection, environmental sustainability, code of conduct, and personal privacy protection requirements. The review and management of suppliers comprise four steps, as listed below:

We require suppliers to be committed to employee rights and health, prohibit the employment of people under the age of 15, comply with the relevant labor laws, and implement occupational health and safety education and ESG-oriented corporate social responsibilities. The procurement of various related products and source materials and the manufacturing process must not include any toxic controlled substances stipulated by the Environmental Protection Administration or any controlled substances stipulated by international conventions.

We have held the CTBC Holding Supplier Conference annually since 2020 to proactively assist suppliers in implementing sustainable management mechanisms. The 2022 Supplier Conference was held on Dec. 9, 2022, with over 155 suppliers participating. Since the event's inception, nearly 400 suppliers have attended. At the event, CTBC Holding shared its experiences in implementing ESG practices and human rights development management. The aim was to collaborate with suppliers and align with international standards to build a sustainable supply chain.