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Greenhouse Gas Reduction and Management

  1. The Bank's General Affairs Office is responsible for establishing the greenhouse gas inventory and verification plan and actions, taking annual greenhouse gas emissions, which are verified by external organizations. Dynamic adjustments are made to the greenhouse gas reduction actions. In 2022, the Bank signed up for the Science- Based Targets initiative (SBTi), with 2020 as the base year for greenhouse gas emissions, and set proactive short, medium, and long-term reduction targets to achieve the decarbonization goal by 2030.
  2. The Bank regularly reports on its greenhouse gas management to the Sustainable Development Committee and the Board of Directors, effectively tracking and overseeing the implementation effectiveness of greenhouse gas reduction measures.

Greenhouse Gas Reduction Target

The Bank has set greenhouse gas reduction targets following SBTi requirements. The base year value is the sum of category 1 and category 2 greenhouse gas emissions in 2020. The target is to reduce greenhouse gas emissions by 42% by 2030 compared to the base year, aiming to limit global warming to within 1.5 and contribute to the goals of the Paris Agreement.

  1. Short-term target for 2023
    1. Scope of greenhouse gas inventory and verification
      1. Covers greenhouse gas emissions in categories 1 to 5 for all domestic sites. 
      2. Covers greenhouse gas emissions in categories 1 to 2 for all overseas business units and subsidiaries.
    2. Greenhouse gas reduction
      1. Total greenhouse gas emissions from categories 1 and 2 reduced by an average of 4.2% annually.
    3. Implementation of the greenhouse gas offset project
      1. The headquarters' original plan has been validated for ISO 14064-2 and reviewed by the EPA. 
      2. 1 site has been validated for ISO 14064-2 and reviewed by the EPA, becoming a sub-project.
  2. Mid-term target for 2030
    1. Greenhouse Gas Inventory and Verification Scopes
      1. Covering categories 1~5 greenhouse gas emissions of all domestic and overseas business units.
      2. Covering categories 1~2 greenhouse gas emissions of all subsidiaries.
    2. Greenhouse gas reduction
      1. Greenhouse gas emissions reduced by 42% compared to 2020.
    3. Implementation of greenhouse gas offset projects
      1. 5 sites passed ISO 14064-2 certification and EPA review and joined as sub-projects. 
      2. Carbon credits obtained for one site.
        target

Greenhouse Gas Inventory and Verification

Greenhouse Gas Inventory and Verification

  1. The greenhouse gases included in the inventory by the Bank include all greenhouse gases listed in the IPCC Sixth Assessment Report. The Bank also references the current national greenhouse gas inventory methods. In emission sources of Category 1 direct emissions, substances restricted by the Montreal Convention are excluded from the report. The directly emitted greenhouse gases of Category 1 include CO2, CH4, N2O, HFCs, PFCs, SF6, and NF3. The inventory results show that the direct greenhouse gas emissions of the Bank include CO2, CH4, N2O and HFCs. 
  2. ► Inventory result: There are 4 types of greenhouse gases directly emitted by the Bank include CO2, CH4, N2O, and HFCs.
  3. The organizational boundary for greenhouse gas inventory of the Bank is established based on operational control. Since 2017, regular inventories of greenhouse gas emissions have been conducted for all domestic sites. Since 2019, we have adopted the new version of ISO 14064-1:2018 for the inventory, and expanded the scope in accordance with the standard specifications. In addition to direct greenhouse gas emissions (Category 1) and emissions from purchased electricity (Category 2), we have also incorporated the concept of carbon emissions life cycle to fully quantify and report all upstream and downstream indirect emissions related to other activities and raw materials within the organizational boundary.
  4. In 2022, taking reference from Taiwan's "Sustainable Development Roadmap for TWSE/TPEx Listed Companies," the scope of greenhouse gas inventory and verification has been expanded to include overseas business units and subsidiaries. This ensures consistency between the disclosure of greenhouse gas emissions and our consolidated financial statements, enabling proactive planning of greenhouse gas reduction actions.
  5. Greenhouse Gas Inventory Scopes

Implementation of greenhouse gas inventory and verification

  1. Historical Greenhouse gas emissions
    The Bank conducts greenhouse gas inventory per ISO 14064-1:2018 and regularly tracks the effectiveness of historical greenhouse gas reduction efforts. We dynamically review greenhouse gas reduction strategies and actions. The historical greenhouse gas emissions of the Bank are as follows:
    Historical Greenhouse gas emissions
  2. 2022 Greenhouse Gas Reduction Performance
    The Bank uses the greenhouse gas emissions from all domestic business units in 2020 (17,158.302 tons CO2e) as the base year. The short-term target is to reduce the total carbon emissions from Category 1 and Category 2 by an average of 4.2% annually, with the mid-term target of 42% reduction by 2030.
    In 2022, the greenhouse gas emissions from all domestic business units of the Bank were 16,093.745 tons CO2e, representing a 6.2% reduction compared to the base year, in line with the Bank's expected carbon reduction effect.
    1. The emissions from Category 1 decreased 14.9% from 2,231.307 tons of CO2e of the base year to 1,897.961 tons. However, as pandemic ameliorated in 2022, the frequency of official vehicle usage increased, resulting in limited reduction effectiveness for Category 1 emissions. The Bank has initiated plans to introduce hybrid vehicles for official use.
    1. Although Category 2 emissions decreased 4.9% from 14,926.995 tons CO2e of the base year to 14,195.783 tons, in line with the expected carbon reduction effect for the current year, the Bank will continue to promote energy conservation within the company in light of the national increased carbon intensity coefficient for electricity.
    2. The Bank will continue to supervise the implementation of greenhouse gas reduction actions to achieve the target of an average reduction of 4.2% annually and a 42% reduction by 2030.2022 Greenhouse Gas Reduction Performance
  3. Greenhouse gas emissions verification results
    The Bank's 2022 greenhouse gas emissions have been verified by the British Standards Institution (BSI) and the verification statement is publicly available on the Bank's website. The summary of the verification is as follows:
    1. Corrective and preventive measures have been taken for significant issues identified. 
    2. The data quality of the inventory complies with ISO 14064-1:2018.
    3. The assurance level for direct greenhouse gas emissions and indirect greenhouse gas emissions from energy inputs (Category 1 and Category 2, as defined in ISO 14064-1:2018) is reasonable assurance. Other indirect greenhouse gases (Category 3 to Category 6) are of limited assurance.
    4. Verification Statement

Greenhouse Gas Offset Project

  1. The EPA has announced plans to implement carbon fees or carbon trading system. The Bank has developed the "Greenhouse Gas Offset Project" to acquire emissions reduction credits (carbon credits) and participate in carbon trading in the future.
  2. According to the Regulations Governing the Greenhouse Gas Offset Project, the project is conducted in a programmatic manner, with the headquarters as the parent project and the Hsi-Sung Branch as the first subproject. Emission reduction credits (carbon credits) from equipment replacement were calculated using the Demand-side Energy Efficiency Activities for Specific Technologies methodology (AMS-II.C) from the United Nations' Clean Development Mechanism (CDM), after which the Bank completed the project plan for the parent project and sub-project, and it underwent external verification by an ISO 14064-2 accredited verification body in September 2022. The Bank obtained the ISO 14064-2 validation certificate in February 2023. The Bank plans to submit a registration application to the EPA in 2Q23. Upon approval, the Bank will carry out carbon credit monitoring for the Hsi-Sung Branch with verification, in hopes to facilitate future carbon credit applications to the EPA. Additionally, the Bank will assess the possibility of including other business units as sub-projects.
  3. Note
    1. 1: Verification Body refers to an organization authorized by the EPA to conduct greenhouse gas verification in accordance with the Regulations Governing Greenhouse Gas Verification and Validation Organizations.
    2. 2: Validation refers to the process by which a project's plan is reviewed by a verification body to ensure compliance with the Greenhouse Gas Reduction and Management Act.
    3.   3: Verification refers to the process of verifying greenhouse gas emissions data or greenhouse gas reductions (including carbon sequestration) data through by a verification body or on-site audits.
  4. Greenhouse Gas Offset Project

Strategies and Actions of Greenhouse Gas Reduction

To achieve the greenhouse gas reduction target for 2030, the Bank has formulated greenhouse gas reduction strategies and actions between 2021 and 2030. The achievements for 2022 and the targets for 2023 are summarized as follows:

Strategies and Actions of Greenhouse Gas Reduction
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