As a global corporate citizen, CTBC upholds the values of energy efficient carbon reduction and sustainable environmental protection, commits to implementing a "Green Policy, Green Future", and actively promoting green energy-related financial products and services in an effort to encourage environmental protection-related industries through offering credit policies. We are committed to establishing ourselves as a green financial institution that aims to exert an influence on sustainable economy with our leading status in the market.

Energy Conservation and Carbon Reduction

Record of Energy Management Promotion

GHG Reduction Programs and Outcomes in Previous Years

Area of Implementation

2017

2016

2015

CTBC Financial Park

  • Adjustment to A/C operating time in office areas.

  • Operation using melted ice water from the ice storage system during peak A/C demand period

  • 1°C increase in ice water temperature from water cooler main units increases office temperature by 1 °C

  • Reduction in switching on of public area ventilators in each floor level

  • Sensor-based A/C in conference room

  • Fan speed reduction by adjusting the frequency of A/C variable frequency motor

  • Use of LED lights in all areas/automatic control switch/ independent remote control light switch

  • Use of dimming lighting in public areas/Adjustment to on/ off times based on area and time period

  • Noon shutdown/nighttime overtime shutdown

  • Installation of independent control circuit in lighting equipment next to windows/corridors

  • Reduction of dimming in lighting equipment in underground Parking/whole area shutdown

  • Adjustment to operating time of outdoor landscape lighting (in conjunction with brightness detector)

  • Adjustment to operating time of outdoor landscape fountain pump

  • Adjustment to operating and scheduling time of underground parking ventilation equipment

  • Adjustment of drinking fountains to energy saver mode at night/on weekends and holidays

  • Enhancement of green transport intention and establishment of electric car charging station

  • Reduction in down light circuits in core floor areas

  • Reduced lamp count in underground parking areas

  • Timer switch for ventilation system

  • Adjustment to schedule of ice storage system

  • Adjustment to the power of mainframe units and auxiliary equipment

  • Adjustment to A/C operating time

  • Reduced lamp count in underground parking areas and replacement of T5 lamps with LED lamps

  • Installation of lighting remote control and switching off the lights for 1 hour at noon

Other Bank Branches

  • A/C power consumption at 12 branches reduced

  • A/C at 3 branches switched off 1- 1.5 hours before closing

  • Adjustment of generator room A/C operating mode to reduce A/C energy consumption

  • A/C units at 4 branches were replaced

  • Lighting fixtures and lamps at 3 branches were replaced

  • Lighting in IT server room switched off to save energy and switch to IR surveillance cameras

Other Subsidiaries

  • Reduction in number of downlight

  • Replacement of cooling blade in cooling water tower

  • Replacement of variable frequency A/C in elevator machine room

  • Replacement of LED lights in 1-12 elevator lobbies

  • Use of efficient LED lighting (reduction of light bulb wattage)

  • 1-hour shutdown at noon

  • 1°C increase in A/C temperature

  • 1-hour shutdown at noon

  • A/C setting at 26°C and increased use of energy-saving fans

  • Reduction of lamp count in underground parking areas

  • Adjustment to operating time of underground ventilation equipment

  • Adjustment of drinking fountains to energy saver mode at night/on weekends and holidays

Total Electricity Savings Each
Year ( kwh )

4,250,336

3,021201

1,197,497

Total GHG Emission Reduction
Each Year (tonnes)

2,248

1,595

623

Note 1: Other bank branches refer to business locations outside of the financial park.

Note 2: Other subsidiaries include Taiwan Life, CTBC Securities. CTBC Venture Capital, CTBC AMC, CTBC Investments. CTBC Security, and Taiwan Lottery.

Note 3: The electricity emission coefficients are 0.521 (2014), 0.528 (2015), and 0.529 (2016, 2017) kg of CO2 e/kWh.

Green Building

Building use is one of the sources of global greenhouse gas emission. Using green finance as the service concept, CTBC Holding is fully committed to green building designs for climate change mitigation, which can not only elevate workplace comfortability and safety for employees but also integrate elements of nature and ecology into the local environment for providing customers with the most eco-friendly and productive service quality.

Location

Label Grade and
Status Quo

Features

CTBC
Financial Park

Acquired EEWH
Diamond Level
Green Building

  • 30,691 m2, the largest among financial office buildings of equivalent level.

  • Average building coverage ratio of roughly 51% which is far lower than the statutory maximum of 65%; 49% of the site is therefore open space.

  • The 22,479 m2 of public space on the first floor and adopted green land make it the largest public open space of a private-sector development in Taipei City.

  • The public parking spaces. neighboring the park were transformed into a 12,036 m2 Sanchong World Trade Eco-Park, where vegetation is distributed according to the four seasons and tropical and subtropical zones representative of Taiwan's forestland. In addition. 131 fern species were planted in cooperation with National Taiwan University. thus establishing Taiwan's first fern park.

  • Held Christmas light shows and opened the first outdoor skating rink in Taiwan. The integration of art. culture and park space represents a new milestone in urban architecture for Taiwan.

Taiwan Life
Huiguo
Building

Acquired EEWH
Silver-Level Green
Building Candidate
Certificate.

  • 2,595 m2, from the initial stages of planning and design, incorporated green building features that facilitate environmental protection and energy conservation. This year, a green building label will be obtained for the completed building to contribute to building a healthy eco-friendly environment that embraces energy conservation and waste reduction.

  • Average building coverage ratio of 49.21%; 50.79% of the site is therefore open space, reserving the largest space with limited area.

  • We will adopt 227 m2 of sidewalk to provide building users and the general public a sufficiently green, interactive urban open space, create a clean urban environment with extended city park roads and street view, and thereby beautify the overall environment.

  • The entire green building will use LED lights to conserve energy and by varying lighting designs, we attempt to create different visual perceptions and transform the building into a new landmark of the 7th office building.

Land No. 555,
Subsection 2,
Shijia Section,
Cianjhen
District,
Kaohsiung
City

Acquired EEWH
Silver-Level Green
Building Candidate
Certificate.

  • To increase green area, the first floor is designed using open space elements, and landscape setting is applied to the base setback space for planting all types of plants. The green area on the 7th and 24th floor is increased by using sky garden concepts.

  • Daily energy-saving equipment such as rooftop insulation material, low-e glass, VAV A/C system, and high-reflectivity lights are used.

  • Designs that reduce the use of blast furnace cement, high-performance reinforced concrete, and mixture of RC and SRC are used to reduce carbon emission.

  • Dual flush toilets and rainwater storage system are used to save, recycle, and reuse water.

Green Purchasing

Total green purchasing in 2017 exceeded NTD 200 million. CTBC Holding has been awarded the "Outstanding Contribution to Green Purchasing by a Private Enterprise" by the Department of Environmental Protection, Taipei City Government for nine consecutive years. The Company has also been awarded the "Outstanding Contribution to Green Purchasing by a Private Enterprise" by the Environmental Protection Administration, Executive Yuan for eight consecutive years. CTBC purchases products bearing government or trade association sponsored ecolabels for environmentally friendly, energy efficient, water conserving, or green building material attributes. Ecolabels from Europe, the US, Japan and Korea as well as the Energy Star and the FSC labels are also accepted. In green building construction and renovation projects, CTBC Holding also requests the use of green materials and equipment or furniture (ceiling, compartment wall, oil painting, carpet, lighting) bearing ecolabels for environmentally friendly or energy efficient attributes so as to reduce environmental burden and comply with environmental requirement.

Green Purchasing Items and Amount Unit : NTD

The challenges facing the development of mankind has now been defined by the United Nations Sustainable Development Goals (UN SDGs) and the Paris Agreement. As a leader of the financial industry, CTBC has not forgotten the critical role that should be played by the capital market. The principles of impact investing were adopted by CTBC in 2012 so that investment decisions not only look at the financial returns but also take into account their positive impacts on the environment and society. Attention is given to ecological protection and pollution topics during financial operations while investments and loans are channeled to industries involved in green energy.

Responsible Investment and Loan Related Policies

CTBC Bank

Our "Corporate Core Credit Policy"(CCCP) expresses support for credit strategies and products relating to green energy and environmental protection. Due diligence must be conducted on businesses with energy-intensive, resource-intensive and pollution-intensive operations, with labor disputes or corporate governance issues, or those that issue important announcements due to illegal behavior to prevent credit risks arising from the impact on their operations.

Taiwan Life

The "Operating Regulations for Credit Investigation, Approval and Review of Loans" specifically require the evaluation of corporate borrowers during the application review process to determine whether they have fulfilled their responsibilities in environmental protection, ethical management, and social responsibility.

CTBC Securities

The Internal Control System mandates that attention should be paid to investee companies with respect to but not limited to related news reports, financial performance, industry overview, management strategy, environmental practices, social responsibilities, labor rights, and corporate governance.

CTBC Capital

The "Investment Business and Risk Policy" stipulates that investment units shall conduct a complete investment analysis and establish items to be monitored after investment for investee companies. Furthermore, levels of authority and procedures have been established. In addition, attention must be paid to whether investee companies have fulfilled their responsibilities in environmental protection, ethical corporate management, social responsibility, labor rights, and corporate governance. After investment is conducted, CTBC Capital continues to monitor whether the investee companies have fulfilled the aforementioned responsibilities. Investee companies also receive supervision to ensure that improvements are being carried out on relevant matters.

CTBC Investments

The 6 principles set out in the compliance statement for "Stewardship Principles for Institutional Investors" are as follow: to establish and disclose stewardship policies; to establish and disclose policies on managing conflicts of interest; to monitor investee companies on a regular basis; to maintain an appropriate dialog and interaction with investee companies; to establish clear voting policies and disclose voting results; and to periodically disclose to clients or beneficiaries the status on fulfillment of stewardship responsibilities.

CTBC Responsible Products and ServicesUnit : NTD 100 million

Categories

Subsidiaries

ESG Content

2016 Assets/Amounts

2017 Assets/Amounts

Investments

CTBC Bank

Invested in green-related industries, such as waste disposal, hydroelectric power generation, and solar energy.

Total Investment: 9.6

Total Investment: 41

Taiwan Life

Invested in solar energy industry.

Total Investment: 1.125

Total Investment: 12.27

CTBC Capital

Investment in green energy industry.

Total Investment: 1.14

Total Investment: 1.146

Loans

CTBC Bank

Green loans to green technology industry, circular economy industry and green building.

Loan Balance: 1,429

Loan Balance: 1,331

CTBC Bank
(overseas),
Taiwan Life, and TLG
Capital

Loan to ESG related industries such as wind power, electric vehicles and hybrid vehicles.

Approved Loans: 265

Approved Loans: 66.73

Insurance

Taiwan Life

Introduced micro-insurance/ sub-health insurance/ funerary non-cash payment insurance/ health management spill-over/ affordable aging insurance policies to help the disadvantaged and provide social care.

Total Policies: 0.027

Total Policies: 0.9

TLG Insurance

Promoted compulsory automobile liability insurance and basic residential earthquake insurance in support of government policy.
Insurance coverage also offered for natural disasters such as typhoon and flooding.

Total Policies: 4.7

Total Policies: 4.9

Products
CTBC Bank

Natural resources, green-related funds/ bonds/ investment-inked insurance products.

Amount of Assets: 76.9

Amount of Assets: 75

Issuing of green bonds.

-

Amount of Bonds: 10

CTBC Investments

Global Silver Age Income Fund/ Global iSport Fund.

Fund Size: 31.4

Fund Size: 37.8

Service
CTBC Bank

Provides account management services for the government's recycling management fund/ soil and ground water pollution remediation fees/ green point system.

Amount Accepted by Proxy
73.43

Amount Accepted by Proxy
81.3(note)

Inderwriting og green bonds.

-

Underwrite Amount: 10

Note: Account management services for soil and ground water pollution remediation fees are starting from April 2017.