To echo the country's 2050 Net-Zero Emissions Goal, FFHC's Board of Directors has reviewed and approved the adoption of the absolute contraction approach with effect from 2023. Using Science Based Targets (SBT) to control warming to under 1.5℃, it requires that the Group's combined annual carbon emissions from Scope 1 and Scope 2 be reduced by 4.2% from the baseline year (2022), and that the outcome be submitted to the SBTi for review. The amount of carbon reduction from Scope 1 and Scope 2 in 2023 totaled 2,274.90 MT CO2e, or 10.57%. The amount of carbon reduction achieved by adopting paperless operation measures reached 24,260.71 MT CO2e. Overall, the total amount of carbon reduction reached 26,535.61 MT CO2e. The related measures and their results are described as follows:

To implement our environmental sustainability initiatives, FFHC formed the "Green Building Certification Program" team in 2010, and revamped and converted its own branches and buildings into green buildings. As of the end of 2023, 36 buildings had been completed, including the revamp of 33 old buildings, which were subsequently awarded the Green Building Label from the Ministry of Interior (including diamond grade for 29 buildings, silver grade for one building, bronze grade for one building, and qualified grade for two buildings. In particular, First Commercial Bank's Headquarters Building was certified as a Level 1+ Nearly Zero Carbon Building for energy efficiency among existing buildings by the Ministry of Interior in 2023, setting an example for green buildings in the financial industry in Taiwan.) Additionally, two of our new buildings have received the gold level Green Building Labels. Our London Branch Building obtained the "PASS" grade green building certification from Britain's Building Research Establishment (BRE) in 2021, the first location among our overseas branches to be certified. We expect a cumulative total of 48 locations to be certified as green buildings by 2029. In addition to gradually revamping our own existing branches and buildings to obtain the Green Building Labels, we have included all of our domestic and overseas business locations in the scope of "ISO 14064-1 Greenhouse Gas Inventory" for verification since 2017, in an attempt to have an overall grasp of the status of carbon emissions at the Group's various business locations. Since 2020, we have held carbon management and energy conservation contests among domestic business units for four straight years, as we strive to attain the goal of reducing our GHG emissions.

To reduce carbon emissions generated from official business transport, FFHC has introduced green transport to internal implementation, encouraging employees to use public transportation to commute to work. It has also established a public EasyCard system for employees, making it easier for them to take public transportation when they go out on a business trip. EVs, hybrid vehicles or vehicles with higher energy conversion efficiency are prioritized for evaluation when existing official business vehicles are up for replacement. The total number of our hybrid official business vehicles was 128 by the end of 2023. We have also installed EV charging stations at our Zhongli Branch and Yanping Building, which are available for use by employees and visiting customers. We have also progressively replaced motorcycles with traditional internal combustion engines that are nearing the end of their life cycle with electric scooters. 111 electric scooters had been introduced by the end of 2023, contributing to an annual reduction of around 41.3 MT CO2e＊1. We have also installed battery swapping kiosks for electric scooters at vacant lots near seven of our locations, including our Zhongshan, Dadaocheng, Beitou, Xinxing, and Caotun Branch, as well as the Yanji Dormitory and Information Building, as part of our efforts to promote low-pollution, energy-efficient and smart scooters.In addition, we have set up 13 employees dormitories at company sites located in high population density areas as well as rural regions and remote areas, which help reduce carbon emissions of employees commuting to and from work.

To respond to the green energy policy, the FFHC has used the renewable energy. Between 2015 and 2023, the Company purchased a total of 8.608 million kWh worth of green power, carbon credits and Taiwan Renewable Energy Certificates.. In addition, after assessing the sunshine conditions of the operating sites, rooftop solar power generation systems were built in 2016. As of the end of 2023, 23 rooftop solar generation systems have been completed and the total annual carbon reduction amounted to 122.04 metric tons CO2e. FFHC set goals for producing and using 220 MWh of renewable energy for 2024 and will continue to increase the proportion of the Group's use of renewable energy, so that we may implement environmental sustainability policies.

To promote the practice of transporting renewable energy to our branches, the Group has signed green power wheeling agreements with renewable energy vendors and purchased green power compatible with the "Bundled REC System", which allows for direct deduction of electricity consumption from our Taipower bills while substantially reducing the amount of carbon emissions. From December 2021 to the end of 2023, 22 of the Group's business locations had utilized green power. 5,906,000 kWh in green power has been used cumulatively so far, and we expect to increase the share of green power year by year.

FFHC is devoted to promoting its green building policy, as well as reducing the effects of urban heat islands. The Group has built three "zero carbon green roofs" at its Wanhua, Huashan and Chang'an Buildings so far, which incorporate the concept of ecological hydroponics, aquaponics and landscape gardens. A rainwater harvesting system has been designed to replenish the aquaponic system with water. We use solar voltaic panels to generate electricity to power system circulation, including decontamination, filtration and water purification. With the aquaponic system, we can grow vegetables and fruits on the water while farming fish in the water. Fish excreta serves as a source of nutrients for the vegetables and fruits that we grow. The roofs also provide employees with a multi-function green space for resting, showcasing the "trifecta" idea incorporating production, life and ecology. Our zero carbon green roofs have been repeatedly cited for Corporate Award in the Taipei City Garden City Awards. In 2023, our Chang'an Building was the only building to receive the commendation.

In 2012, FFHC realized the idea of rainwater harvesting and reuse by installing a 1.3 million-liter rainwater recycling tank in the basement of our Headquarters Building, which is used for watering gardens and flushing toilets. Apart from the Headquarters Building, the Company also duplicated that experience at other branch office buildings. We installed rainwater recycling tanks at our Yanping Building and Zhongli Branch in 2020. A rainwater harvesting system was installed at the Wanhua Branch, which is used to water the green roof to take full advantage of water resources.

In 2023, the Group's total water consumption was 236.52 million liters. Tap water therefore made up 99.98%% of the water consumption and 0.02% came from the Headquarters building basement's overflow and rainwater. FFHC investigated water consumption at each company including operating sites. Apart from First Bank's existing domestic locations of operations, securities firms, securities investment trust enterprises, life insurance companies and the AMC Head Office, units included in calculating the total amount of water consumption also expanded to encompass securities firms, securities investment trust enterprises, life insurance companies and AMC's domestic locations of operations in 2022. First Bank's overseas locations of operations have also been included in the pool in 2023.

In order to improve water use efficiency, the headquarters building introduced the "ISO 46001 Water Efficiency Management Systems" and obtained certification in 2021, strengthening water resources management measured by implementing and optimizing the daily management of major water-consuming equipment, as well as through the water use review and performance evaluation, including using a management and monitoring system to control the operations of each water pump. Water consumption at each operating site was regularly investigated to see if there was any leakage in the piping and facilities. Speedy repair was a must in case of leakage. Certified green water-saving devices such as water-saving tap fittings, 2-stage flushing toilets, and sensor-controlled urinals were also installed to reduce water usage. We adjust the kitchen dishwashing process to save washing water. In addition, to protect water resource, we have installed an oil trap in the headquarters' on-site kitchen, utilized eco-friendly cleaning agents, and used warm water to clean dishes, which will reduce the quantity of cleaning agents used. In addition, we have engaged contractors to carry out septic tank pumping on a regular basis and conducted wastewater testing to determine the directional flow of contaminants, thereby improving overall water quality and reducing pollution.

To maximize resource sorting, recycling and reuse, FFHC makes it a rule to set its annual resource recycling target every year. In addition to strictly enforcing the policy of zero trash bins and zero personal trash bins in the office, it also installs garbage recycling and sorting cans on each floor, prompting employees to bring their trash to the cans for garbage sorting and recycling. We also continue to weigh general waste and resource garbage, demanding that domestic business locations of the Group's companies and First Commercial Bank's overseas units conduct resource recycling, sorting, and garbage amount calculation.

To complement the drive for the internal carbon pricing policy, First Commercial Bank has conducted the "Carbon Management and Energy Conservation Contest Among Domestic Business Units", and allocated carbon reduction targets to various domestic business units. The target achievement status of each unit would be published on a quarterly basis. Their target achievement rates are tallied and published by the end of each year. These contests awarded 55 commendations to business units with outstanding performance between 2021 and 2023, and awardees included deputy supervisors. During those three years of contest, 1.3598 million KWh of electricity was conserved, and the cumulative amount of carbon reduction was around 685 MT CO2e. Approximately NT$3.22 million in operational cost was saved, given that the average cost of carbon reduction per metric ton during the past three years was NT$4,700. Units with outstanding performance were awarded with administrative rewards. Business units failing to achieve their carbon reduction targets were given carbon pricing reports so that they understood the cost of carbon emissions they should pay for exceeding the target limits. They were also required to submit their carbon reduction plans. Additionally, the "FCB Living Green e-Newsletter" would also share the experiences of business units with outstanding performance in order to increase the effectiveness of carbon reduction. In 2023, First Securities and First Financial AMC also held internal carbon pricing contests in order to reinforce the Group's carbon reduction measures. Furthermore, all employees have been encouraged to submit proposals for environmental protection and energy conservation measures since 2014. The Group received a total of 10 submissions in 2023, and two of them were eventually adopted.

The Company has installed an eco-friendly employee restaurant in its Headquarters Building, which has received the Eco-Friendly Restaurant certification from the Ministry of Environment. In the meantime, we also echo the Ministry of Environment's "Ten Moves to Cherish Food" campaign, and purchase our daily food ingredients from nearly organic farms, which not only supports small local farmers, but also ensures the freshness of our food ingredients while reducing the carbon footprint of food; Reusable utensils are provided for repeated use, and we also use environment-friendly detergents to clean them. The first Wednesday in the first week of each month is designated as the "Meatless Day". We would also echo the International Meatless Day on November 25 each year to roll out the "LOHAS Vegan Meal" at the employee restaurant, where healthy and low-carbon menus are designed by professional dietitians to encourage our employees to reduce carbon emissions and show their love for the Earth via their daily diet.

We have been converting food waste into compost since 2023, using the fractal accelerated fermentation approach to turn 480 kg to 500 kg of kitchen waste generated by the eco-friendly restaurant into fertilizers. The resulting 120 kg to 150 kg of fertilizers are used on the Group's four green roofs in order to put renewable resources into effective use.