Chang Hwa Bank|Corporate Social Responsibility-Green Transition

I. Green Deposits

i. The Bank launched a one-year "Green Deposit Program" in 2022 (September 5, 2022, to September 5, 2023), which received enthusiastic customer response, collecting 1,958 accounts totaling NT$3 billion.
ii. To continue guiding society's focus on sustainable development and demonstrate the Bank's sustainable finance influence, the Bank relaunched the "Green Deposit Program" in 2024 (November 11, 2024, to November 11, 2025). Customer funds deposited with the Bank are channeled to projects meeting Taiwan's Joint Credit Information Center's green credit standards, including renewable energy projects, green buildings, electric vehicles, waste-to-energy power plants, and wastewater treatment facilities. As of the end of 2024, the program has raised NT$100 million.
iii. External Benefits: All raised funds are directed toward green investment and financing projects with clear environmental benefits, focusing on renewable energy development and sustainable water resource utilization. This assists enterprises in adopting low-carbon technologies and circular resource solutions, thereby promoting the development of lower-carbon economy and enhancing society's overall resilience to climate change, demonstrating the Bank's proactive role as a financial intermediary.
iv. To enhance information transparency and professional credibility, the Bank commissioned third-party independent institutions to conduct effectiveness assessments and issue assurance reports on green deposit fund utilization, ensuring dedicated fund usage and supporting environmental protection through concrete actions, thereby demonstrating the positive influence of financial institutions in leading sustainable development.

II. Sustainable financing products

Data date：2024/12/31
Unit: NTD$ Million

Type	Category of sustainable loans	Balance	Percentage of sustainable loans over total
Corporate Lending [*1]	Green loans, social loans, sustainable loans (Include “Welcome Taiwanese Businessmen to Return to Taiwan for Investment Project Loan", "Rooted Taiwanese Enterprises Accelerated Investment Project Loan", "SME Accelerated Investment Loan", “Green Power and Renewable Energy Industry Loan”, “Solar Photovoltaic Equipment Installation Project Loan”, “Post-Pandemic Recovery Program Loan”, “Low-Carbon Management Program Loan”, “Green Credit”, and “Green Building Loan”.)	109,470.96	30.9%
Corporate Lending [*1]	Sustainability Linked Loans[*3]	67,498
SME[*2] Lending	Sustainable SME loans (Include “Welcome Taiwanese Businessmen to Return to Taiwan for Investment Project Loan", "Rooted Taiwanese Enterprises Accelerated Investment Project Loan", "SME Accelerated Investment Loan", “Green Power and Renewable Energy Industry Loan”, “Keelung City SME Dream-Come-True Loan”, “Loans for Startup Funding for Young Entrepreneurs”, “Post-Pandemic Recovery Program Loan”, “Low-Carbon Management Program Loan”, “Green Credit”, and “Solar Photovoltaic Equipment Installation Project Loan”.)	108,207.03
Consumer Lending	Sustainable loans and mortgages (Include “Youth First-Time Homebuyer Loan”, “Senior Reverse Mortgage Loan”, “Subsidized Home Purchase (Acquisition) and Repair Loan”, “Loans for Startup Funding for Young Entrepreneurs”, “Micro-Business Startup Phoenix Program Loan”, “Labor economic relief loans”, and “Green Building Loan”)	100,088.52	14%

Note：

[*1]- The Data of “Corporate lending” in this column excludes the lending from SME.
[*2]- SMEs of SME loans are which meet the "Standards for Identifying Small and Medium-sized Enterprises" or small-sized businesses that are guaranteed by the SME Credit Guarantee Fund to comply with Article 5 of the "Business Registration Act" and those that are deemed to be small and medium-sized enterprises. For specific identification thresholds of SMEs, please refer to Article 2 of the “Standards for Identifying Small and Medium-sized Enterprises” and Article 5 of the “Business Registration Act”.
Standards for Identifying Small and Medium-sized Enterprises
Business Registration Act
[*3]- We excluded overlapping calculations among different category of sustainable loans.

III. Green Loans Project

The Bank has launched several green loans project to assist enterprises in improving equipment, transforming to low-carbon, and provided funds for the operation of renewable energy power generation, essentially walking the talk in the support of the development of green industries.

Clean Transportation Loan
To support green expenditures such as clean energy vehicles and infrastructure for reducing harmful gas emissions, the Bank offers financial assistance for the development of low-carbon transportation networks and models, with the goal of promoting urban sustainability. In 2024, a total of 16 households received assistance, resulting in a year-end loan balance of NT$ 2,315 million.
Green Power and Renewable Energy Industry Loan
In order to jointly promote the development of our country's green energy technology industry with the government and promote the momentum of industrial innovation and growth, the Bank cooperates with the competent authorities to promote the policy of " Six Core Strategic Industries Promotion Plans" and provided the necessary capital and working capital for green energy technology, green power and renewable energy related industries.
Offshore Wind Power Industry Loan
In cooperation with the government's policies of reducing carbon emissions and increasing energy independence, and to fully promote the development of industries related to renewable energy and offshore wind power, the Bank actively assists the businesses in the offshore wind power industry in obtaining necessary funds for development, purchase of equipment, and operations. As per the loans provided to the businesses and relevant suppliers who have obtained the license for wind farm development projects through the Ministry of Economic Affairs's selection and bidding mechanism in compliance with the Directions for Allocating Installed Capacity of Offshore Wind Potential Zones.
The Solar Photovoltaic Equipment Installation Project Loan
The Bank provides financial assistance to businesses and individuals for the installation of solar photovoltaic equipment supplying Taiwan Power Company, aiming to promote and stabilize the nation's energy transition and renewable energy development. In 2024, a total of 169 business and individual loans were issued, with a year-end loan balance of NT$ 2,649.7 million.
Energy Conservation Service Industry Project Loan
To assist Taiwan's enterprises in net-zero transformation, the "Energy Conservation Service Industry Project Loan" was launched on November 19, 2024, providing funding for energy service providers to implement energy performance guarantee programs, helping enterprises improve energy efficiency and jointly build a vision of a net-zero emissions homeland.
Green Building Loan
To support green consumption and encourage customers to construct or purchase green buildings that are ecological, energy-saving, wastereducing, and healthy, The Bank actively supports energy conservation and carbon reduction efforts, and fosters a friendly environment. The bank promotes financing for the construction of green buildings and encourages the acquisition of real estate with green building label. By collaborating with customers, the bank aims to create a sustainable home and achieve harmonious coexistence with the global environment.

Sustainability Linked Loans
In response to the country's "2050 Net Zero Emissions Pathway" and to encourage enterprises to accelerate their low-carbon transition, as well as increase financing for green and sustainable development, the Bank launched the Sustainability Linked Loan program in mid-February 2022. Under this program, if a listed, OTC, emerging stock, or public company discloses relevant indicators via public information-such as greenhouse gas emissions control, carbon reduction performance, power management, energy consumption, and waste reduction-and demonstrates year-over-year improvement in at least one of these indicators, the applicable loan interest rate may be reduced accordingly. This mechanism is designed to incentivize businesses to balance operational growth with the advancement of environmental, social, and corporate governance (ESG) objectives. As of the end of 2024, a total of 135 enterprises had applied for Sustainability Linked Loans, with a loan balance of approximately NT$67.498 billion.

Green Finance and Products