To help companies reduce the pollution and resources waste in the production or service process, First Bank launched the "No.1 Promoter in the Energy Industry" financing program in 2010 to support energy service companies (or "ESCO Industry"). First Bank also used the "Renewable Energy Sustainable Loan" in line with the "Million Solar Roof" policy by Bureau of Energy, Ministry of Economic Affairs (MOEA) and the power purchase guarantee from Taiwan Power Company to achieve three wins for the equipment user, supplier, and the Bank. To implement Green Renewable Finance policies and to coordinate with the "Productivity 4.0 Industry Transformation Loan" policy of government, First Bank issued "Loans for Green Sustainability-based Industry Transformation", helping Taiwanese corporations transform, and catch up with the global market trend of low-carbon production. Furthermore, FFHC organized "Green Finance Committee," with our President as the chairman in March 2017. The committee is responsible for setting up policy goals and reviewing the results. It is also responsible for incorporating the green industry financing projects mentioned above, and expanding the scope of green financing to "Green industries" and "Green enterprises". In 2018, the applicable scope was expanded to overseas branches across the globe to help achieve conservation of the local environment and help local industries complete their low-carbon transformation.

First Bank is dedicated in our support of domestic transportation infrastructure by actively financing construction projects for mass transit tools such as Taiwan High Speed Rail and Taipei Metro. This relieves the domestic north-south transportation capacity, improves the regional transportation of remote areas, and boosts transportation around airports to promote the development of travel and transportation both domestically and abroad, promote Taiwan's economic development, and improve benefits for the general public.

In order to be in line with international ESG trends, First Bank launched the "sustainable performance-linked credit project", which differs from green loans in that the funds can be used without being confined to specific purposes. Through long-term monitoring of ESG indicators, connecting corporate borrowers' sustainability performance in controlling greenhouse gas emissions, electricity, energy, and total waste, etc. to loan interest rate pricing. The Bank will reduce the financing costs if the borrower meets the relevant ESG performance indicators to encourage corporate borrowers to actively manage their low-carbon transformation risks and support corporate borrowers that implement ESG governance in this engagement manner. The credit accounts tracked in 2022 accounted for a total decrease of 1,117,300 tons CO2e and conserved 125.977 million kWh of electricity for the year.

Moreover, First Commercial Bank also co-organized an NT$18.75 billion ESG green syndicated loan with Mega International Commercial Bank for Formosa Sumco Technology Corporation. This syndicated loan links ESG (environmental, social and governance) sustainability indicators to the conditions on credit extension. We are able to help the borrower align with the international trend of sustainable development through reviewing its various ESG performance indicators and providing preferential interest rates, which are based on its indicator fulfillment rate.

In order to support the developmental requirements of key national policies and industries in the implementation of the Executive Yuan's "Program for Promoting Six Core Strategic Industries", First Bank initiated the "Preferential Financing Project for Six Core Strategic Industries" in 2022 to provide for the funding requirements of daily operations, R&D, plant expansion, transformation, and other various stages of operations for customers in the six core strategic industries.

To respond to the global trend of net-zero emissions, the government officially published "Taiwan's Pathway to Net-Zero Emissions in 2050" in March 2022. The pathway is based on the four major transformations of "energy, industry, life, and society" and the two major governance foundations of "technology research and development" and "climate legislation", and supplemented by "12 Key Strategies". Action plans have been formulated for important domains where growth is expected as a result of government policies on energy, industrial and life transformations, in an attempt to implement our efforts to achieve the net-zero transformation goal. First Commercial Bank provides customers in the following related strategic industries with the funds needed for operations in accordance with the government's 12 key strategies.

First Commercial Bank has consistently increased its share of investment in green bonds over the years. We resort to actions to support our invested companies to implement their plans for a low-carbon economy and carbon reduction. We also abide by the International Capital Market Association's (ICMA) Green Bond Principles (GBP), Sustainability Bond Guidelines (SBG) standards, as well as the regulations stipulated in the "Taipei Exchange Operation Directions for Sustainable Bonds" to issue green/sustainable development bonds, and obtain third-party verifications.In 2023, an additional NT$1.5 billion of sustainable development bonds have been issued, accounting for 56.51% of the amount of financial bonds issued that year. In addition, to facilitate the achievement of the 2050 net-zero emissions goal, we make it a rule to review our invested companies' publicly available information such as their sustainability reports. We would review their scope of business operations or action plans to see if they pertain to sustainable economic activities involving the 12 key strategies. As of the end of 2023, First Commercial Bank had invested NT$49.3 billion in companies engaged in the aforementioned sustainable economic activities. The Bank also continues to actively expand its positions in hopes that funds could be effectively directed to related ESG applications, and that we could put institutional investors' influence to good use. On the other hand, First Financial Management Consulting successfully raised and managed three green energy funds totaling NT$780 million. Meanwhile, First Venture Capital also invested NT$333 million. When the aforementioned plans are completed, a solar power plant with a capacity of approximately 47 MW will be built, which is expected to reduce 47,000 metric tons of CO2e each year, comparable to the annual combined carbon absorption by approximately 121 Da'an Forest Parks.

To respond to the government's "Green Finance Action Plan 3.0", First Commercial Bank rolled out the "Time Deposits for Sustainable Development" program in 2023, and obtained a limited assurance report from an independent third party, ensuring that funds received from this program would be used on energy conservation and the development of related green projects, in addition to plans pertaining to affordable housing. In doing so, we help projects yielding environmental and social benefits obtain necessary funds. Our customers could thereby exercise their influence on environment and society, and contribute to long-term benefits through their deposits. We undertook a total of 3＊ such cases in 2023. The amount we received totaled NT$1.5 billion, which has been used on credit cases involving the construction of social housing.

In order to guide customers into adopting low carbon products, First Bank has launched "Green Consumer Loans" which targets the procurement of green energy or energy saving products (e.g.: green architecture, hybrid vehicles, electric vehicles, energy-saving appliances, etc.) in customers to provide preferential interest rate loans, thereby increasing incentives to procure green energy or energy saving products. Additionally, to build a paperless digital financial environment and meet the demand for zero contact financial services due to COVID-19, the "e-speed loan" service was launched so that customers could apply for loans through the internet from the comfort of their own homes.

First Commercial Bank spares no effort in supporting the government's drive for urban renewal financing projects, as well as financing the reconstruction of dangerous and old buildings. The Bank also encourages its customers to apply for the Green Building Label, in addition to providing financing to green building projects for security deposit; In 2017, the Bank launched the "Preferential Loans for Accelerating the Reconstruction of Dangerous and Old Urban Buildings" program. Old and dangerous buildings that meet the requirements of the "Statute for Expediting Reconstruction of Urban Unsafe and Old Buildings" or "New Taipei City Simple Urban Renewal or Disaster Prevention Renewal" are eligible to apply for preferential loans for reconstruction. These loans can go as high as matching the total amount needed for reconstruction or related costs, and the repayment duration could be as long as five years. The Bank also partnered with East Asia Real Estate Management Company, a reinvested and affiliated company of the Bank, to provide comprehensive, one-stop financial service for urban renewal, allowing building owners to feel at ease during the reconstruction process. Reconstructed buildings are required to comply with green indicators, and minimize their emissions and discharge of exhaust heat, carbon dioxide, methane and waste water in order to transition to energy-efficient, low-carbon, and environment-friendly communities. The goal is to create a win-win scenario for environment, the residents and the Group. To date, a total of 133 projects related to urban renewal and reconstruction of dangerous old buildings have obtained Green Building Labels of silver or above and are expected to decrease carbon emissions by approximately 5,320 tons CO2e.

First Bank supports domestic enterprises through long-term coordination with credit guarantees of the SME Credit Guarantee Fund of Taiwan to expand financing services to domestic SMEs and earning the 15th "Credit Guarantee Gold Award" in the 2023's Credit Guarantee Financing Business for SMEs in addition to striving for the low carbon transformation and sustainable development of SMEs. We actively undertake green industries and enterprise loans to act as the financial backing of SMEs as they shift towards net zero. We also support the enterprise development of long-term care SMEs, having undertaken 56 SME accounts for the financing of long-term care enterprises in 2023. We will continue to inject capital into projects that provide benefits to society and our environment as we join with borrowers to develop ESG sustainable business opportunities.

First Commercial Bank continues to push forward environmental and public welfare events with a fixed percentage of the amount of transactions made with its charity credit cards/Living Green cards. In 2023, the Bank has been certified to both the British Standards Institution's "PAS2060: 2014 Carbon Neutrality" and the Ministry of Environment's "Carbon Footprint Reduction Label". Green power was used to help reduce carbon footprint during the course of credit card production, and carbon credits were purchased to offset the remaining carbon emissions in order to achieve carbon neutrality. The Bank added the "Carbon Calculator" function to its iLEO app for credit cards in 2023, allowing credit card holders to understand the amount of carbon emissions from their credit card consumption each month. This marks the first time that a government-owned bank offers such service. As of the end of 2023, a total of 18,439 customers have activated this function. The Bank also held a series of "Ride Together for Living Green!" events. Customers not only are eligible for rebates when they use their Living Green cards at green channels, but also can participate in a lucky draw for electric motorcycles after they activate the Carbon Calculator function. To take the digital divide out of the equation for old-aged customers, card holders aged 65 or older can take part in the Bank's credit card marketing events without having to login online, and there are no caps on the number of such participants.

As of the end of 2023, First Securities Investment Trust has issued 5 funds that are above average (4 globes) and comply with the Morningstar Sustainability Rating note as well as 5 funds that meet the high end (5 globes) Morningstar Sustainability Rating for a total scale of NT$9.006 billion, accounting for 7.96% of the funds offered by First Securities Investment Trust. The Bank also raised funds to establish the "FSITC Global Sustainable Impact Investment Multi-Asset Fund", the first ESG fund focusing on impact investment in Taiwan. The size of the fund is about NT$4.047 billion.

The assessment, development, and listing operations of funds and insurance products consider ESG factors. All ESG funds listed by First Bank are compliant with the laws and regulations of the competent authority; The linked objects of First Life Insurance's investment type policies prioritize green funds compliant to the EU's SFDR.

First Securities was the first securities company in Taiwan to offer scores and information relating to the sustainable development of individual stocks, providing investors with a platform that they can reference when investing. By referencing collected sustainability reports, the Market Observation Post System, news reports, and publicly available information from the Financial Supervisory Commission, Ministry of Environment and Ministry of Labor, ESG performance is scored and ranked through analyzing corporate ESG actions using AI quantization and models. In the meantime, TWSE's corporate governance evaluation and rankings have also been included to make the scoring more diverse and objective.

In response to the UN's promotion of financial inclusion for micro enterprises, low income households, residents of remote areas, disadvantaged women, youths, the elderly, and those with disabilities, basic financial services are provided for the goal of sustainable development. First Financial Holding continues to develop various products and services that support disadvantaged groups and provide them with a channel to obtain funding and financial services.

Aside from striving to provide various groups with fair and accessible financial products and services, First Financial Holding is actively combining core businesses to offer diverse non-financial support, such as training and seminars, free of charge. Relevant incentives are offered to encourage disadvantage groups into using financial products and services to fulfill the social responsibility of the financial industry.