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Greenhouse Gas Reduction and Management

  1. The Bank conducts annual GHG emissions inventory, which are verified by external organizations and makes dynamic adjustments to the reduction actions. The Bank regularly reports on its GHG management to the Sustainable Development Committee and the Board of Directors, effectively tracking and overseeing the implementation effectiveness of greenhouse gas reduction measures.
  2. In 2022, the Bank signed up for the Science- Based Targets initiative (SBTi), and set short, medium, and long-term reduction targets of the sum of category 1 and category 2 GHG emissions with 2020 as the base year, aiming to limit global warming to within 1.5℃ and contribute to the goals of the Paris Agreement.

Greenhouse Gas Reduction Target

  1. Greenhouse Gas Reduction Target

Greenhouse Gas Inventory and Verification

GHG Inventory Scopes

  1. The scope for GHG inventory of the Bank is established based on operational control. Since 2017, regular inventories of GHG emissions have been conducted for all domestic sites. Since 2019, we have adopted the new version of ISO 14064- 1:2018 for the inventory. In 2022, taking reference from Taiwan's "Sustainable Development Roadmap for TWSE/TPEx Listed Companies," the scope has been expanded to include overseas business units and subsidiaries. This ensures consistency between the disclosure of GHG emissions and our consolidated financial statements, enabling proactive planning of GHG reduction actions.
  2. The scope for GHG inventory of the Bank

Implementation of GHG inventory and verification

  1. Historical GHG 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 GHG emissions
  2. 2023 GHG Reduction Performance
    With 2020 as the base year, the short-term target is to reduce the total carbon emissions from Category 1 and Category 2 by 12.6% compared to the GHG emissions in 2020 (18,236.492 tons CO2e), and the mid-term target is 42% reduction by 2030. In 2023, the GHG emissions of the Bank were 15,142.278 tons CO2e, representing a 16.97% (3,094 tons CO2e) reduction compared to the base year, reaching the Bank's target for carbon reduction.
    1. The emissions from Category 1 decreased 10.14% from 2,374.304 tons of CO2e of the base year to 2,133.566 tons of CO2e, in line with the carbon reduction target for 2023. The frequency of official vehicle usage increased as pandemic ameliorated after 2023, the Bank has taken actions to introduce hybrid vehicles for official use.
    2. The emissions from Category 2 decreased 17.99% from 15,862.188 tons of CO2e of the base year to 13,008.712 tons of CO2e, in line with the carbon reduction target for 2023.2022 Greenhouse Gas Reduction Performance
  3. GHG emissions verification results
    The Bank's 2023 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. The corrective and preventive actions for outstanding issues are accepted. 
    2. Data quality was considered acceptable in meeting the principles as set out in ISO 14064-1:2018. 
    3. The level of assurance of direct greenhouse gas emissions and indirect greenhouse gas emissions from imported energy (ISO 14064-1:2018 Category 1 and 2) in the inventory report is reasonable, and the validation and agreedupon procedures (AUP) process for the other indirect greenhouse gas emissions (Category 3-6) is applied.

Voluntary Greenhouse Gas Emission Reduction Project

  1. The Bank has developed the "Voluntary Greenhouse Gas Emission Reduction Project". According to the Regulations Governing the Voluntary Greenhouse Gas Emission Reduction Project, we calculated emission reduction credits (carbon credits) from equipment replacement of Hsi-Sung Branch using the Demand-side Energy Efficiency Activities for Specific Technologies methodology (AMS-II.C) from the United Nations' Clean Development Mechanism (CDM), and it underwent external verification by an ISO 14064-2 accredited verification body*1 in September 2022. The Bank obtained the ISO 14064-2 validation*2 certificate in February 2023. The Bank submitted a registration application to MOENV in 1Q24. 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 MOENV. Additionally, the Bank will assess the possibility of including other business units into Voluntary Greenhouse Gas Emission Reduction Project.
  2. 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 GHG emissions data or GHG reductions (including carbon sequestration) data through by a verification body or on-site audits.

Internal carbon pricing implementation

In 2022, the Bank implemented an internal carbon pricing model for "replacement with LED lighting" as part of the procurement decision-making process, which uses a Shadow Pricing approach to calculate carbon reduction, taking into account the carbon fee rate announced by regulatory authorities (NT$1,500 per ton). In 2023, the scope of implementation of the internal carbon pricing model is expanded to include three carbon reduction measures: replacement with LED lighting, replacement of AC equipment, and adoption of hybrid electric vehicles for official use. In order to achieve the carbon reduction target for 2023, the Bank continuously implements a range of carbon reduction actions. For significant actions, we estimate the amount of carbon reduction and associated costs using internal carbon pricing. This will serve as a reference for making resource allocation decisions in the future, particularly when resources are limited.

  1. Internal carbon pricing implementation

Inventory and Verification of Carbon Footprint of Credit Card

To understand the carbon footprint of credit card products and further reduce GHG emissions, the Bank implemented the ISO 14067 product carbon footprint standard for its entire series of contactless credit cards in 2023. This encompassed 100% of the bank's credit cards. On January 2, 2024, the bank received a verification statement from the British Standards Institution and a product carbon footprint label certificate from the Ministry of Environment. The verification results indicate that the carbon footprint of each credit card is approximately 1.16 kg CO2e, for a total of approximately 393.52 metric tons of CO2e. The use phase is the main source of emissions. The bank plans to increase the proportion of electronic invoices in the future, with the aim of reducing emissions by 3% in 2027 compared to 2022. This reduction would reduce the carbon footprint of each credit card to 1.12 kg CO2e, requiring a total reduction of 380 metric tons of CO2e.

Strategy and Action 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 2023 and the targets for 2024 are summarized as follows:

Strategies and Actions of Greenhouse Gas Reduction
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