In 2011, the FFHC Board of Directors approved the establishment of the CSR Committee, and renamed as "Sustainable Development committee" in March, 2022, which is the core organization of the Group for promoting sustainable governance with the Chairman as the chair and Presidents of the companies of the Group as members of the Committee. The Committee set up trans-company working groups on "Corporate Governance", "Responsible Finance", "Sustainable Financial Products and Services", Employee Care", "Environmental Sustainability", and "Community Engagement". A dedicated ESG unit is also assigned by the President each subsidiary for ESG communications, liaison and the provision of related information. The core team consists of 92 people (1 chairman, 8 committee members, 2 conveners, 6 executive directors, and approximately 75 employees split among the various working groups). The Sustainable Development committee is administered by the Corporate Governance Section of the Administration Department, and 6 designated employees are responsible for the sustainable development plans and implementation of the Group. The top-down approach ensures the effective and concrete implementation of each annual ESG objective. The Company monitors international ESG development trends and changes in regulations to continuously improve the sustainable governance of the Group. In order to deepen the implementation and execution of the Group's sustainable development policy, in 2022, ESG comprehensive performance was included in the annual operating performance evaluation items of each subsidiary to ensure the achievement of annual goals in various ESG areas.

The Group also established the "Sustainable Development Policy" and " Guidance on Sustainable Development" which serve as the highest guiding principles of the Group and subsidiaries for mitigating ESG risks and making use of opportunities. To comply with sustainable finance development trends and implement climate change management, First Bank signed and joined the Equator Principles (EPs) Association in 2020 and TCFD as the supporter. We joined PCAF in 2022 to carry out Scope 3 investment and financing financial carbon emissions inventory, and joined SBTi to identify the carbon emissions of our own operations and investment and financing positions, and report the results of the Group's climate change risk assessment and its mitigation measures and implementation to the Risk Management Committee and the Board of Directors. We adhere to the United Nations Principles for Responsible Banking (PRB), Principles for Responsible Investment (PRI), and Principles of Sustainable Insurance (PSI) to incorporate ESG issues into the development strategies and operating procedures of core businesses such as investment, financing, underwriting, and insurance. We established the Group's sustainable lending, sustainable investment, and sustainable insurance policies to help customers and investees fulfill their obligations for environmental protection and social sustainability.

Every year, each working group of the Sustainable Development committee compiles the E.S.G. Issues of Concern to FFHC stakeholders, then draws up the short-term, mid-term, and long-term ESG targets, and drafts action plans and subsidiaries' annual ESG assessment basic items. These are discussed and revised internally at WG meetings before being submitted to the " Sustainable Development committee" for review. Approved proposals are then announced for implementation. Progress on each annual goals and action plan is then tracked and reviewed on a quarterly basis by Sustainable Development committee WG meetings. Within 4 months after the end of the fiscal year, major sustainability issues of stakeholder concern in the 3 major aspects of governance, environment, and social were reported to the Board of Directors using the framework for sustainability reporting guidelines published by the Global Reporting Initiative (GRI). The report contained the risks and opportunities generated by the Group's operations, short-, medium-, and long-term targets in sustainable development, and target achievement in the previous year.