Chang Hwa Bank|Corporate Social Responsibility-Message from the Chairperson

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Message from the Chairperson

To Toward the net zero goal, the Bank will focus on 4C in the next step.
Carbon - Expand the greenhouse gas inventory and actively take action to reduce carbon emissions.
Capital - Create investment value and exert long-term sustainable influence.
Credit - Follow the Equator Principles and assist enterprises in transformation by green finance.
Customer - Value the Principle to Treat Clients Fairly and optimize financial friendly services.

Since its establishment in 118 years ago, Chang Hwa Bank has adhered to the people-oriented business philosophy of "Service, Efficiency, and Innovation." The Bank's professional services extend to major financial centers around the world, playing a crucial role in global economic development and capital allocation. In response to ESG issues such as global climate change, economic turmoil, and social justice, the Bank embraces corporate social responsibility and shoulders the mission of coexistence with sustainability. Through the expansion of core operations, passive contributions are converted into proactive actions to honor the commitment to sustainable development; accordingly, we formulated our operational strategy based on the 4C Sustainability Vision (Carbon, Capital, Credit, and Customer). In addition to enhancing corporate value, we also show active support for national, social, and net-zero emission policies with tangible actions, contributing to the making of a better future.
Regarding the promotion of sustainable development, 2023 was a crucial year for Chang Hwa Bank. Remarkable results were achieved in the improvement and promotion of corporate governance and responsible finance, as well as in employee welfare, social welfare, and environmental sustainability, receiving widespread recognition and support from various sectors. For instance, in addition to being ranked in the top 5% of the Corporate Governance Evaluation for three consecutive terms, we earned a spot in the top 20% of the inaugural sustainable finance evaluation, were included in the Dow Jones Sustainability Index (DJSI World), and were elevated to an A- leadership level in the CDP Climate Change Questionnaire evaluation. Moreover, we have received numerous national-level awards, including the National Sustainable Development Award, 13 National Brand Yushan Awards (including 2 national first prizes), the National Occupational Safety and Health Award, and the National Enterprise Environmental Protection Award. These accolades validate the Bank's leading position in promoting sustainable development and appeal to investors, demonstrating that sustainability is not an obstacle to business development but rather a market trend indicator.

The Bank is dedicated to supporting the global climate action goals outlined in the United Nations Paris Agreement, and aligning with the national vision of achieving net-zero emissions by 2050. In particular, we have established specific and ambitious targets for reducing carbon emissions, which passed the evaluation by the Science Based Targets initiative (SBTi) in May 2024. This confirms that the Bank's operational carbon emissions, as well as emissions from our investments and financing portfolios, are in accordance with the temperature limits set by the Paris Agreement, specifically 1.5℃ and 2℃ . Additionally, achieving net-zero carbon emissions by 2050 has also been set as a crucial milestone for the Bank.
In 2023, the Bank achieved significant carbon reduction results by comprehensively replacing energy-consuming equipment, promoting electric/low-carbon vehicles, establishing carbon-neutral branches, green building branches, solar-powered branches, and expanding green energy usage at various locations. For these reasons, carbon emissions were reduced by 16.97% (3,094 tons of CO2e) compared to the baseline year 2020, allowing the Bank to steadily achieve our short-term goal. We also implemented an internal carbon pricing mechanism to reduce the environmental impact of our operations, emphasizing carbon offsetting and carbon trading issues, and demonstrating our commitment to environmental protection.
The Bank adheres to the concept of responsible finance. While pursuing business profitability, we also value international initiatives that promote sustainability, such as the United Nations Sustainable Development Goals (SDGs), the Principles for Responsible Investment (PRI), and the Principles for Responsible Banking (PRB); hence, ESG management ideas and thinking are incorporated into the decision-making process of investment and financing. Moreover, through proactive dialogue, engagement, business opportunities, and exercising rights, we seek to understand, participate in, and guide the sustainable development of investee companies/clients. Within these efforts, the Bank plays an active role as an advocate and driving force, enhancing the influence of capital providers.
The Bank further promotes green financing and issues sustainable development bonds to support industries with environmental or social benefits, helping to establish a virtuous cycle of low-carbon, green economic models. In addition to creating positive, sustainable impacts, this also enhances stable revenue sources, creates shareholder value, and enables the Bank to achieve dual objectives of financial performance and environmental sustainability.
The Bank is committed to enhancing financial accessibility and inclusivity, beyond providing equitable and inclusive financial services, products, and education outreach for various groups, we also uphold fair customer treatment principles and strive to offer friendly financial services. Our diverse range of inclusive financial products also caters to the financial needs of various social groups, including youth, the elderly, people with disabilities, women, small businesses, and communities, to support entrepreneurship. Additionally, trust services are provided to safeguard customers' property and future life, and Taiwan Pay mobile payment tools are offered for their security and convenience. Benchmark demonstration branches and customer service systems have been established, allocating services based on customer needs and prioritizing communication with the elderly; dedicated lines for services in Taiwanese Hokkien have also been set up. These measures aim to promote balanced social and economic development and create maximum financial value.
Fraud cases are plentiful and pervasive in the age of rapid digitalization; as a result, in 2023, we joined the Eagle Eye Anti-Fraud Alliance to utilize AI technology in protecting customer assets. In addition, the Bank has organized anti-fraud awareness campaigns in local communities, and partnered with law enforcement to enhance public awareness and promote anti-fraud knowledge, showcasing that we are not just a financial institution, but also a guardian of social security.
Furthermore, in order to fulfill our responsibilities in environmental protection, social inclusion, and corporate governance, the Bank has implemented a sustainable business strategy and a comprehensive plan for sustainable development. By pursuing these goals, we aim to leverage the Bank's financial influence to promote and contribute to a sustainable future. Ultimately, beyond protecting the Earth with which we currently coexist, the Bank's commitment extends to encompass the determination in ensuring that future generations can inherit a healthy, safe, and sustainable environment.