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 2023 accounted for a total decrease of 4,499,300 tons CO2e and conserved 1,483.92 million kWh of electricity for the year.

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.

Unit: NT$100 million

In compliance with the International Capital Market Association's (ICMA) Green Bond Principles (GBP), Sustainability Bond Guidelines (SBG) standards, Sustainability-Linked Bond Principles (SLBP), as well as regulations of Taiwan's "Taipei Exchange Operation Directions for Sustainable Bonds", we have issued green/sustainable development bonds, and third-party certifications have been acquired. As of the end of 2024, First Commercial Bank had issued sustainable development bonds with a cumulative total of NT$5.5 billion.

To respond to the government's "Green Finance Action Plan 3.0", First Commercial Bank has offered the "Time Deposits for Sustainable Development" program since 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 development of related green projects, in addition to social impact financing plans like affordable housing. In doing so, we are able to help enterprises that have demonstrated actual improvements in environmental and social benefits to obtain necessary funds. Our customers could thereby bring about positive influence and long-term effects on environment and society through making a deposit. In 2024, we undertook a total of 3＊ such cases. The amount we received totaled NT$1.62 billion, which has been used on credit cases involving 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 164 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 6,560 tons CO2e.

First Commercial Bank supports local enterprises with action. Apart from our long-standing collaboration with the Small & Medium Enterprise Credit Guarantee Fund of Taiwan in providing credit guarantee, we have also expanded financing services for Taiwan's SMEs. In 2024, we won the "Credit Guarantee Golden Quality Award" for credit guarantee financing operations for SMEs for the 16th time. In addition, we also won the "Green Credit Promotion Award", a special credit guarantee award, back-to-back. Furthermore, we were also presented with the "Post-Pandemic Revitalization Award-Financial Institution Category" as well as "Local Assistance in Post-Pandemic Revitalization & Transition Award", which makes us the most awarded financial institution in the entire industry. To continue to support SMEs in the low-carbon transition and to drive their sustainable development, First Commercial Bank resorts to concrete actions to provide a range of preferential loans for green financing, as part of our efforts to guide businesses to value sustainable development and fulfill their corporate social responsibilities, so that we can march toward a sustainable ecosphere hand-in-hand. In addition, we also support the development of small and medium providers of long-term care. As of 2024, we had undertaken a total of 77 financing cases for small and medium providers of long-term care. As of the end of 2024, the total approved amount had reached NT$1.76 billion, with the outstanding loan amounting to NT$1.115 billion. We continue to inject funds into projects conducive to social and environmental benefits, and strive to develop ESG and sustainable business opportunities together with our borrowers.

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 was certified to both the British Standards Institution's "PAS2060: 2014 Carbon Neutrality" and the Ministry of Environment's "Carbon Footprint Reduction Label". Green electricity 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 transactions each month. This marks the first time that a government-owned bank offers such service. As of the end of 2024, a total of 33,983 customers had activated this function. In addition, we also hold carbon reduction & LOHAS marketing campaigns, in which holders of green credit cards who use them at designated green channels are entitled to cashback bonuses.

As of the end of 2024, FSITC had issued 3 funds with higher-than-average rating (four globes) by the Morningstar Sustainability Ratingnote, as well as 6 funds qualified for Morningstar's highest rating (five globes), with a total scale of around NT$6.565 billion while accounting for 5.24% of FSITC's publicly offered funds. In particular, the "FSITC Global Sustainable Impact Investment Multi-Asset Fund" is Taiwan's first ESG fund focusing on impact investment.

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 is 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. 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 analysis and models. In the meantime, TWSE's corporate governance evaluation and rankings have also been included to make the scoring more diverse and objective. They have also been integrated into First Securities' customer order placement system, so that investors can promptly access corporate ESG scores and related analyses to significantly improve their decision-making efficiency.

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.