2021
REPORT2021
Preface

About EnTie

04 About this Report
05 Letter from the
Chairman09 Company Profile
10 Vision and Mission
11 Operational and Financial
Performance

Sustainable Business Sustainable
Strategy
Governance

Products andServices

14 Sustainability Performance and SDGs
16 Stakeholder Communication
18 Analysis of Material Issues

39 Financial Inclusion
44 Digital Finance
47 Customer Service and Protection

25 Corporate Governance and EthicalManagement
30 Legal Compliance, Internal Control,and Internal Audit
33 Risk Management
36 Information Security

Green Environment

Social Care

Appendix

54 Sustainable Finance
59 Supplier Management
61 Environmental Sustainability
64 Task Force on Climate-related Financial
Disclosures (TCFD)

76 Diverse Talent Recruitment
81 Employee Welfare and Health87 Employee Training and Development
90 Social Participation

93 GRI Standards Index
97 SASB Standards Index
98 Independent Limited Assurance Report

02

2021

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

Preface
Under the impact of COVID-19, EnTie continues to provide professional
services and works hand in hand with everyone to overcome difficulties.
In accordance with international standards and guidelines, the Bank
hereby discloses its efforts and achievements in the three aspects ofenvironment, society, and governance in 2021.

About this Report P.04

Letter from the Chairman P.05

03

2021

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

About this Report
Practicing corporate social responsibility has become an important part of the implementationof corporate governance of EnTie Commercial Bank (hereinafter referred to as “EnTie” or the“Bank”), and the Bank has taken it as the foundation for sustainable operation. Through thecontent of this report, the Bank responds to stakeholders' concerns about the major issues in
its sustainable operation and achievements in environmental, social, and governance aspects.

Issuance of the Report
Entie Bank issued the first edition of the Corporate Social Responsibility Report in 2015, andchanged its name to the Sustainability Report in 2021; eight editions of the report have been
issued so far. The report is issued periodically on an annual basis based on a public disclosure
principle. The last version of the report was issued in September 2021. The sustainability
reports issued by the Bank over the years can be downloaded from the "Corporate
Sustainability Zone" on the official website of EnTie Bank.

Reporting Guidelines
The structure of this report follows the core options of the GRI Standards of the Global Reporting
Initiative (GRI), the Commercial Banking Standards and the Supplementary Guidelines for the
Financial Industry of the Sustainability Accounting Standards Board (SASB), the framework of the"Task Force on Climate-Related Financial Disclosures (TCFD)" of the Financial Stability Board (FSB),
and the "Taiwan Stock Exchange Corporation Rules Governing the Preparation and Filing of
Sustainability Reports by TWSE Listed Companies" and the "Sustainable Development Best PracticePrinciples for TWSE/TPEx Listed Companies" of the Taiwan Stock Exchange. Reference was also
made to the basic principles of inclusiveness, materiality and responsiveness of the AA1000
Accountability Principle Standard. All the information and statistical data disclosed in this report arecollected by Entie Bank. However, CPA certified public information is adopted for the financial data. Alldata are described in the usual numerical descriptions, and the report scope is not significantly different
from that of the previous year. All financial figures in this report are expressed in New Taiwan dollars. If
the rest of the quantitative data has special significance, it will be explained in a separate note.

Report Scope and Boundary
The information disclosed in this report covers the sustainability performance and status ofEntie Bank’s headquarters and branches in Taiwan in 2021 (January 1 to December 31, 2021).
For the sake of completeness of some project and activity data, part of the content covers theimplementation before January 1, 2021 and after December 31, 2021.

Contact Information
Business Planning Department, EnTie Bank

Report AssuranceThis report is assured by KPMG Taiwan in accordance with the Criteria of Assurance Official
Report No. 1 "Assurance of Audits or Reviews of Non-Historical Financial Information", issued
by the Accounting Research and Development Foundation of the Republic of China, for the
specific performance indicators disclosed in the report (hereinafter referred to as "believing
target information") to implement limited assurance. The independent limited assurance reportplease refer to the appendix.

Address: 40F, Taipei 101 Building, No. 7, Section 5, Xinyi Road, Taipei
Telephone: +8862 8101 2277
Fax: +8862 8101 2233
Company website: https://www.entiebank.com.tw
Corporate Sustainability Zone: https://www.entiebank.com.tw/entie/ESG

Sustainability
Report04

2021

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

Letter from the Chairman
Due to the continuing impact of COVID-19 to the world, coupled with the geopoliticalconfrontation and the crisis of energy and food supply caused by the war between Russia andUkraine, the economies and societies of all countries are under enormous threat. Theinterwoven impact of various risk factors has brought severe challenges to the development of
the sustainability issue. Future changes in the situation will test the resilience strategies ofpolicymakers, and will also highlight the urgent importance of sustainable development.

EnTie Strives for Carbon Reduction on Multiple Tracks for the Net Zeroby 2050
According to the 2022 Global Risk Report released by the World Economic Forum (WEF), climatechange issues, energy issues and social inequality have been the topics of close attention in recent
years. In the face of climate change, net zero emissions has become an important international trend.
The National Development Council's four major transformations of energy, industry, life and society in
2050 will affect our daily life in the next 30 years.
In order to demonstrate its determination to cope with climate change, EnTie Bank commissioned
external consultants to introduce climate change related risk assessment at the end of 2021, followed
the framework of the Task Force on Climate-related Financial Disclosures (TCFD), identified andmeasured climate risks and opportunities, and disclosed the Bank's actions in the four aspects ofclimate change governance, strategy, risk management, and indicators and targets. The Bank expects
to complete the scenario analysis and stress test of physical risks and transformation risks by thesecond quarter of 2023.
EnTie Bank set a five-year carbon reduction target in 2016, and has introduced a number ofenergy-saving measures in daily operations to reduce the use of energy and paper. In the first phase,
we achieved a carbon reduction of 21% by the end of 2021, which was significantly ahead of the target.
We also extended the scope by inviting suppliers to join the environmental protection together byincorporating environmental and social factors into the supplier selection criteria, with 100% of thegoods purchased locally to jointly fulfill social and environmental responsibilities.

In order to comply with the "Sustainable Development Roadmap" of the FSC, the Bank hasplanned to start the greenhouse gas (GHG) inventory taking, and the information disclosure of
the GHG inventory is expected to complete by the end of 2023, and the external verification
completed by the end of 2024, so as to continue promoting energy conservation and carbon
reduction.

Expand Green Energy from Wind Power to Sustainability Linked Loans"What everyone does, everyone helps". When more and more enterprises start from themselves, they
are expected to create a win-win situation of economy, society and environment (ESG). In response toresponsible finance, EnTie Bank has been supporting the development of green energy industry with
its core business, and deeply engaged in green energy for nine years from the offshore wind power
renewable energy industry to the construction of fishing and electricity symbiosis and solar photovoltaic
projects. By the end of 2021, the credit balance of the green energy technology industry had reached
NT$12.2 billion, a sharp increase of 22% over the previous year.
Based on the global trend of integrating sustainable development into business activities, EnTie Bank
launched the "advanced version" of green credit in 2021, and undertook sustainability linked loans forthe first time. Presently, there are two sustainability linked credit cases, which are in the solar energy
industry and the telecommunications industry. These credit cases have been linked to the ESG related
data adjustment mechanism and incorporated into the design of loan conditions to encouragecustomers to achieve ESG goals.
In addition, low-carbon transportation is one of the important projects in the planning of the five major
roadmaps of net zero emissions by 2050, and the Ministry of Transportation and Communications
expects to complete the replacement of diesel buses by 2030. The 130 electric bus of the credit caseundertaken by EnTie Bank will be successively put into mass transportation in Taipei and New Taipei
City in 2022. According to statistics, traditional medium and large buses emit 1.305 kg of carbon dioxide
per kilometer when moving, while electric vehicles has zero carbon emission when moving. If theoverall carbon emission is considered during power generation, the carbon reduction per kilometer byusing electric buses can reach 53%.

05

2021

Equal Rights in the Workplace; Up to 60% Female Employees
Gender equality is the core of the sustainable development of the United Nations. EnTie Bank iscommitted to building a happy workplace culture of diversity, equality and inclusiveness, and providing
equal opportunities for men and women in employee selection, employment, education, and retention.
In 2021, the proportion of women among all employees of the Bank was 60.4%, and the proportion of
female managers was 49.6%; these ratios have been rising for three consecutive years. At the sametime, the proportion of female directors among the board of directors has also reached 27%, which isfar higher than the average proportion (13.90%) of female directors of listed companies in 2021
according to the statistics of the TWSE.
The number of employees grew steadily in 2021, with a new recruitment rate of 17.9%. In addition,
employee cultivation and care is also one of our key concerns. 90% of the learning of our employees iscompleted via online platforms. In response to the increase in statutory training courses in recent
years, the average number of hours of training per person is 40.2 hours, and seven health lectures areheld for employees. In addition, in order to strengthen the health and safety protection of employees,
other than the existing group medical insurance for employees, the Bank has purchased epidemic
prevention insurance and vaccine insurance for all employees as the measures for safer workplace
protection.

Implement Treating Customers Fairly and Promote Financial Inclusion
In the post-pandemic era, EnTie Bank accelerated the promotion of various digital financial servicesof the financial industry. In 2021, the Bank completed a number of new functional services for its
digital platform, such as JKOPay agreement linked deposit account payment, online counter area,
credit card online supplement/progress query, preferential application for friendly service bank's
new online inter-bank withdrawal, etc. Since the launch of the new version of Internet banking, thenumber of members has continued growing. The application rate of new accounts has reached morethan 95%, and the number of applications has increased by nearly 10,000 in 2021.

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

The Bank attaches importance to customer service
and protects customers' rights and interests. In 2021,
the customer satisfaction level reached more than
95% in the survey, and the number of customer
complaints decreased by 14% from last year. In orderto demonstrate better corporate governance, we
intensified our efforts in the field of fair hospitality. At
the beginning of 2022, the board of directors approved
the establishment of the "Treating Customers Fairly
Committee" to provide better services to customers interms of protecting the rights and interests ofconsumers, and deepening the financial needs andservice quality of vulnerable people such as the elderly
and the physically and mentally disabled, so as tocontribute to the sustainable development of the Bank.
In addition to responding to environmental challenges,
EnTie Bank is committed to social dialogue. Since
2017, the Bank has been promoting the "Children
Have Hope" project and cooperated with multiple
public welfare partners to support the educational
development of rural/vulnerable children. In 2020, a
concert and charity sale and public-welfare micro film
activities were launched in combination with Taitung's"Kids’ Bookhouse", so that the influential sustainable
story that turns the community around can be passed
on. At the same time, this is also the third year of the
Bank to donate safety boxes to vulnerable families inthe village, for a total of 255 boxes thus year. Throughresource sharing, the traditional folk festival is given
deeper significance.

06

2021

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

Sustainable Management to Actively Realize Enterprise Value
Ethical values are the key to the sustainable management of the financial service industry and the trust of customers. Only by constantly improving the management system and shaping an organizational cultureof ethics and continuous learning, can we grasp the opportunities and adapt to changes and risks. EnTie Bank's board meeting supervises business operations with due diligence, and the average attendance rate
was as high as 100% in 2021. With the efforts of all employees, the Bank has ranked among the top 6% to 20% in the "Corporate Governance Evaluation" of the TWSE for eighth consecutive years, which showsthat the results of our ethical corporate management and risk management have been recognized by the public.
In 2021, EnTie Bank's net revenue reached NT$5.937 billion, with a net profit after tax of NT$2.324 billion, a record high in six years. By the end of 2021, the Bank's common equity ratio and Tier I capital ratio bothreached as well as 16.50%, ranking second among the 35 domestic commercial banks, and only second to the Taiwan branches of foreign banks. Meanwhile, the Bank's capital adequacy ratio is 17.69%, which isapproaching the peak in recent years. The stable and high-quality capital policy is the cornerstone of EnTie Bank's strong operation.
Every year, EnTie Bank takes care of the needs of stakeholders from the three aspects of ESG, namely the environment, society and economy, and reviews and optimizes daily operations bit by bit. The preliminary
achievements have already been shown at present. In the future, in response to external changes and the development of the world situation, the Bank will dynamically adjust its business policies based on theexisting foundation, work toward the goal of a sustainable enterprise while taking into account economic growth, environmental protection and social care, and jointly create a more resilient and inclusive society.

07

2021

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

About EnTie
EnTie Bank has been in business for nearly 30 years, and has consistently adhered to thecore business philosophy of "speed, professionalism and trust" to strive to demonstrate an
excellent competitive advantage with speed while taking into account business quality, so
as to respond to the diversified personal and corporate financial service needs.

Company Profile P.09

Vision and Mission P.10

Operational and Financial Performance P.11

08

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix2021

Company Profile
EnTie Bank was established in June 1992 and officially started operations on April 15, 1993.
EnTie Bank was listed on the Taiwan Stock Exchange In 1999. In November 2007, the Bank
introduced an investment team headed by private equity fund - the Longreach Group. Througha clear strategic positioning and the operation of a professional team, EnTie Bank was built intoa modern financial service institution that gives priority to its customers.

Service Network
The main business of Entie Bank is to provide the most professional services of deposit andremittance, loan financing, account transaction, financial transaction and wealth management
for corporate and individual customers. With Taiwan as the main operating base, the Bank has
a total of 50 branches, including 30 branches in Taipei and New Taipei City, 8 branches in the
Taoyuan and Hsinchu area, 5 branches in the greater Taichung area, 3 branches in the Chiayi
and Tainan area, and 4 branches in Kaohsiung.
In terms of digital channels, EnTie Bank actively creates and improves the digital financial
environment, and integrates various and automated channels and service processes such as
online banking, mobile banking apps and online credit card application, and is committed toproviding customers with instant, convenient, stable, diverse and accessible new financial
services.
The pandemic has accelerated the digital process of the financial industry. In order to meet theneeds of business development and integrate operation platforms to improve organizational
operation efficiency and strengthen information security, EnTie Bank established its "Digital
Banking Department" in early 2021 and consolidated the "Business Supporting Department".
In November 2021, the Bank set up the Chief Information Security Officer position tostrengthen the promotion of information security policies and the protection of financial
information security, and added the Wealth Management Operations Control Section under the
Retail Operation Management Department to strengthen the monitoring of the wealthmanagement staff and establish a third-party monitoring mechanism. In addition, in order todeepen the protection of financial consumers, a "Treating Customers Fairly Committee" wasestablished in early 2022.
EnTie Bank had no major changes in the organizational size, structure, ownership or supply
chain in 2021.

External Participation
In terms of external initiatives, in order to create long-term interests for capital providers, EnTie
Bank signed the compliance statement of the "Stewardship Principles for Institutional
Investors" issued by the Taiwan Stock Exchange on September 11, 2018 in order to implement
公司正式名稱
the institutional investor’s due diligence governance, andregularly discloses the status of due
diligence governance to stakeholders.
In addition, to fulfill its corporate social responsibilities and strive to safeguard the basic humanrights of all employees, customers and stakeholders, EnTie Bank formulated the"Human Rights
Statement of EnTie Bank” in 2018 to recognize and abide by the UN “Universal Declaration of
Human Rights”, “Global Compact” and “Convention of the International Labor Organization”,
and uphold the spirit and basic principles of human rights protection disclosed in various
international human rights conventions,in order to enable the employees and stakeholders of
the Bank to be treated fairly and with dignity.
In terms of public association participation, the Bank actively participates in businessassociations related to the financial industry, conducts exchanges and cooperation on
professional and important issues, and grasps the dynamic trends of domestic and foreignindustries. As of 2021, the Bank has participated in a total of 6 public associations. Amongthem, EnTie Bank serves as a member of the research and training group of the Credit Card
Business Committee under the Bankers’ Association, mainly handling matters related to credit
card business. As of April 2022, EnTie Bank has 15 employees as members of the Taipei
Commercial Bank Association.
The Bankers’ Associationof the Republic of China

The Bankers’ Associationof Taipei

Chairman Jesse Ding served
as the 13th-term supervisor

Chairman Jesse Ding served
as the 19th-term director
R.O.C. Bills Finance
Association

Trust Association of the
Republic of China
MemberMember

EnTie Bank’s memberships
Taiwan Securities
Association
Memberof public associations

Insurance Brokerage Associationof Taiwan
Member09

2021

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

Vision and Mission

10Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

2021

Operational and Financial Performance
As the impact of COVID-19 on the global economy did not stop in 2021, EnTie Bank adjusted its
business direction in a timely manner to respond to changes in the internal and external
environment with a stable and prudent business policy. In 2021, under the principle of pursuinginterests and taking risks into consideration, EnTie Bank focused on ESG sustainable operation,and promoted the four goals of "solid and diversified income base", "deepened organizational andoperational resilience", "balanced asset-liability structure" and “pragmatic promotion of digitaltransformation”, in the hope of a good performance in profitability, risk management, capitalutilization, personnel organization and digital development.

Financial Performance
EnTie Bank's net profit after tax in 2021 was NT$2.324 billion, a six-year high. The net interest
income and net fee income of core businesses both grew, and the bad debt expenses
continued to decline, driving the overall revenue and profit to continue to rise. The after-tax
earnings per share (EPS) was NT$1.19, the return on average assets (ROAA) and return on
average equity (ROAE) were 0.72% and 6.70%, respectively. Pursuing a balanced loan
portfolio under optimized risks and returns, the total deposit balance increased byapproximately NT$20.6 billion as of the end of 2021; the total loan balance increased byapproximately NT$13.1 billion, with a deposit ratio of 76.3%.

Dividend Payment
Since 2011, EnTie Bank has distributed cash dividends for 11 consecutive years. The dividend
policy is determined by taking into account the Bank's business growth needs andshareholders' expectations, as well as the sustainability of the dividend payment amount.

Financial Highlights

Unit: NT$ thousand

2017

2018

Operating capacity

2019

2020

2021

公司正式名稱

Net income

6,359,545

6,409,398

6,413,132

5,846,961

5,937,038

Net profit after tax

2,100,432

2,210,281

2,081,804

2,171,460

2,323,700

Operating expenses

3,013,837

2,887,878

2,900,048

2,806,872

2,907,983

Shareholders’ equity

31,850,363

33,309,677

33,693,629

34,521,952

34,835,242

13.49

14.13

14.33

16.32

17.69

After-tax earnings per share

1.24

1.26

1.13

1.11

1.19

Return on equity (%)

6.74

6.78

6.21

6.37

6.70

Return on assets (%)

0.69

0.71

0.67

0.70

0.72

Capital adequacy ratio (%)
Profitability

Economic value allocated to stakeholders
Employee salary and benefits

1,725,775

1,660,239

1,689,471

1,648,238

1,769,320

Dividend distribution

1,007,807

1,041,194

1,818,794

1,429,274

1,429,274

124,182

59,952

78,61273,887259,179

Profit-seeking enterpriseincome tax

2021
AnnualReport11

2021

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

EnTie Bank’s Capital Adequacy Ratio and Credit Rating
Under the high-quality capital policy, the capital adequacy ratio of EnTie Bank in 2021 reached17.69%, which once again pushed it to the peak in recent years. At the end of 2021, thecommon equity ratio and Tier 1 capital ratio were as high as 16.50%, ranking second in theindustry and only after the branches of foreign banks in Taiwan. Strengthen the capital level tobecome an important cornerstone to support future business growth.

公司正式名稱

EnTie Bank's adequate and better-than-average capital level, moderate asset growth risks andwell-managed deposit and withdrawal risks have been rated positively by Fitch Ratings. The
credit rating report released by Fitch Ratings on April 12, 2022 pointed out that it will continue
to affirm EnTie Bank’s operational fitness and development foundation, and maintains its
National Long-Term rating at "A (twn)", and a short-term rating at "F1(twn)”. Regarding theshare swap between IBF Holdings and EnTie Bank, the report pointed out that the Evolving
Outlook on EnTie reflects the uncertain impact of the proposed transaction.

National
Long-Term RatingA ( twn )Short-TermRatingF1 ( twn )F

Outlook

Evolving
E

Rating date

2022/04/12
2

12

2021

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

Sustainable Business Strategy
EnTie Bank actively responds to the UN Sustainable Development Goals (SDGs), continues to improve
its sustainable performance, attaches great importance to the communication and interaction withstakeholders, and pays attention to material issues affecting the Bank's operations and stakeholders.

Sustainability Performance and SDGs P.14

Stakeholder Communication P.16

Analysis of Material Issues P.18

13

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix2021

Sustainability Performance and SDGs
Sustainability Performance and UN SDGs
Analy sis of
Ma ter ia l Iss ues
Im por ta nt
Ac hie ve m ent s

Sustainable
GovernanceCorporate Governance

Ethical Management

Legal Compliance

Risk Management

Information Security

Operational and
Financial Performance

Ranking among top

The completion rate of

All 91 supervisors of theCapital Adequacy Ratio

All information security

The net operating income

6%~20% of the "Corporate

employee participation in

Bank completed the17.69%

personnel completed more

was NT$5.937 billion.

Governance Evaluation" of

ethical management

statutory training courses in

The Common Equity Ratio

than 15 hours of informa-

The net profit after tax was

the Taiwan Stock Exchange

courses is 100%.

accordance with theand Tier 1 Capital Ratio astion security professional

NT$2.324 billion, a six-year

for 8 consecutive years,

regulations.

high as 16.50%, ranking

courses in accordance withhigh.

7 board meetings were

In 2021, a total of 5

second among 35 domestic

regulations.

Fitch Ratings affirmed theheld, with 100% director

sessions of training courses

commercial banks.

All employees completed 3

Bank's National Long-Termattendance rate,

on legal compliance washours of information

Rating at A (twn).

offered within the Bank,

security training.

and the trainees were all
employees of the Bank.

Analy sis of
Ma ter ia l Iss ues
Im por ta nt
Ac hie ve m ent s

Products andServices

Customer Service
and Protection

Digital FinanceGrievance andCommunication Mechanism

Financial Inclusion

The wealth management

6.9% annual growth in

95 cases of customer

There were 135 small andcustomer satisfaction score

Internet/mobile banking

complaints, with a customer

new start-up companies towas 4.79 (five-point scale),customers.

complaint response rate ofwhich the Bank extended

and the consumer finance8.9% annual growth in credit

100%.

loans, with a loan balancecustomer satisfaction rate

card e-billing customers.

of NT$25.2 billion.

was 98% (percentage

7.5% annual growth in

The number of labor relief

scale).

online/mobile banking

loans undertaken was 521.

The service level of thetransaction volume.

31 online wealthcustomer service center is

Launched an online counter

management seminars

86.1%.

to provide deposit,

were held, with 1,231

The completion rate ofremittance, loan and credit

participants.

employee participation incard application and internet

treating customers fairly

banking services.

courses is 100%.

14Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

2021

Ana lys is ofMate r ial Is su esTalent Attraction
and Retention

Employee careerdevelopment

Employee Healthand Workplace

Im por tantAchiev em e nt s

The percentage of female

The average training hours

9 physician healthThe premier of the "Children

employees is 60.4%, andper employee is 40.2 hours.

consultations and 7 healthHave a Future" public

the percentage of female

seminars were held.

welfare micro-movie in April

managers is 49.6%.

The whole bank held 2

2021.

The average salary ofdisaster response training

The "Children Have a Future

non-supervisory full-time

sessions and drills, with a

101 Concert" and Love

employees is NT$979,000,

total of 2,898 participants.

Market activities raised about

and the median salary is

The branches held 2 safety

NT$2.33 million.

NT$802,000.

protection training sessions

Donated village safety boxes

and drills, with a total ofcontaining daily necessities

880 participants.

and food to 255 disadvan-

Social Care

Social Participation

Children Have a Future 101 Concert

Founder of Kids’ Bookhouse

taged families across Taiwan.

Analy sis of
Ma ter ia l Iss ues
Im por ta nt
Ac hie ve m ent s

GreenEnvironment

Sustainable FinanceSupplier Management

Green Operation

Climate Governance and Strategy

Estimated benefit of offshore

By the end of 2021, the number

100% of procurement

In 2021, electricity consumption

In 2021, the investment and financing

wind power project financing,of ESG funds grew to 48, andexpenditures come fromand carbon dioxide emissionsof high-carbon emission industries

with a total of 211 wind turbines,

the annual growth rate of total

domestic suppliers.

reduced by 20.5% comparedaccounted for 9.63%

a total installed capacity ofsales volume exceeded 121%.

Incorporated social andwith those in 2016.

In 2021, the proportion of renewable

1739.2 MW, and an annual

environmental factors into the

The green purchase amountenergy project financing increased bypower output of 4.82 billion kWh

supplier selection criteria, andwas NT$1.976 million.

2.1%

Estimated benefits of offshore

100% of the annual newwind power and solar photovol-

manufacturers are selectedtaic financing, with an annual

based on this criteria.

power output of 7.78 billion

100% of the suppliers signed

kWh, supplying about 2.16

"Corporate Social Responsibility

million households for a year

Self-Assessment" and "Human
Rights and Environmental
Sustainability Commitment".

15

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

2021

Stakeholder Communication
EnTie Bank values the opinions and suggestions of all stakeholders, and has established multiple communication channels for various stakeholders. Different units with different powers andresponsibilities are responsible for communicating with various stakeholders. EnTie Bank's corporate website has a "Stakeholder Area" to understand and appropriately respond to important
corporate social responsibility issues of their concerns. EnTie Bank conducts evaluations according to the five aspects of the AA1000 Stakeholder Engagement Standard: influence, attention,
responsibility, dependence, and diverse viewpoints, while referring to the issues of concern and internal discussions of the financial industry, and finally identifies seven types of key stakeholders
according to the importance.

Stakeholder Area

Stakeholder Communication Channels
Stakeholders

Customer

Employees

Material Issues

Communication Channels

Communication Achievements

Ethical Management

Monthly■ Conducting branch service telephone surveys

Customer Service and Protection

Monthly■ Conducting customer satisfaction surveys

Grievance and Communication

Regular■ Setting up a customer service center to provide customer service lines and customer service network page.

■ Held 31 online customer wealth management briefing sessions

Mechanism

Regular■ Setting up service suggestion mailboxes in each branch.

■ 95 cases of customer complaints, with a customer complaint response rate of 100%.

Information Security

Regular■ Setting up customer service and complaint lines in the Stakeholder Area of the company website.

■ The customer service center received 208,317 service calls, with a service level of 86.1%.

Digital Finance

Irregular■ Holding investment and wealth management briefings and lectures.

Inclusive Finance

Irregular■ Holding special events.

Talent Attraction and Retention

Regular■ Using the "EnTie e-Learning Network" learning platform to promote digital learning.

■ Online learning courses account for 90%.

Employee career development

Regular■ Setting up a senior executive mailbox■ The average training hours for each employee is 40.2 hours, the average number of times

Employee Health and Friendly

Regular■ Setting up an employee grievance and accusation mailbox in the Stakeholder Area of the company website.

Workplace

Irregular■ Posting internal announcements, emails or video chats.

Irregular■ Holding labor consultation and labor conference.

Ethical Management

Regular■ Setting up a dedicated contact window for the competent authority.

Corporate GovernanceRegular■ Participating in government hosted evaluations.

Regular■ Two-way communication with multiple channels such as official documents, email or telephone.

■ Responding promptly to inquiries from competent authorities.

Irregular■ Participating in policy advocacy meetings or symposiums of competent authorities.

■ Actively participating in relevant meetings of the competent authorities.

Irregular■ Complying with the competent authorities’ supervision and audit.

■ Ranking among top 6%~20% of the "Corporate Governance Evaluation" of the Taiwan

Irregular■ Disclosing the latest information on the MOPS or company website.

Operational and Financial Performance
Government
agencies

Communication
Frequency

Risk Management
Legal Compliance
Information Security
Climate Governance and Strategy■ The wealth management customer satisfaction score was 4.79 (five-point scale), and theconsumer finance customer satisfaction rate was 98% (percentage scale).

is 22.5, and the average cost is NT$2,810.
■ 0 complaints in 2021.

■ Completed the "Stewardship Principles for Institutional Investors” compliance statement,
due diligence report and voting records of shareholders' meeting.

Stock Exchange for 8 consecutive years,

16Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

2021

Stakeholders

Shareholders
investors

Material Issues

Communication
Frequency

Communication Channels

C o m m u n i c a tC
i oonmA
mcuhni e
i cvaetm
i oenn tAsc h i e v e m e n t s

Ethical Management

Every year

■ Convening shareholders’ meeting

Corporate GovernanceEvery year

■ Issuing the Company’s annual report and corporate social responsibility report.

Operational and Financial Performance

Every year

■ Holding corporate briefing.

■ One online investor conference held in Chinese.

Risk Management

Every year

■ Accepting credit rating assessment.

■ Released 29 material information on the MOPS.

Information Security

Regular■ Set up a website in Chinese and English and an investor relations area.

■ Fitch Ratings affirmed EnTie Bank's national long-term rating at A (twn). The outlook is

Sustainable Finance

Irregular■ Disclosing the latest information on the MOPS and company website.

Ethical Management

Regular■ Formulating financial and expense management measures.

Supplier Management

Regular■ Formulating the Procedures for Acquisition or Disposal of Assets.

Green Operation

Regular■ Requiring the signing of the Human Rights and Environment Renewal Clause Commitment, and■ One general shareholders’ meeting and one extraordinary shareholders’ meeting were
held in 2021.

Evolving.

Climate Governance and Strategy

Irregular

Suppliers

Irregular■ 100% supplier signing rate.

incorporating ESG clauses into contracts.
■ Holding business briefings and investment bidding and price negotiation meetings.
■ Visits and exchanges

Operational and Financial Performance

Regular■ Setting up dedicated units and a spokesperson system.

■ Released 29 material information in Chinese and English on the MOPS.

Information Security

Irregular■ Holding press conferences or briefings.

■ Issued 15 press releases.

Irregular■ Issuing press releases.

Social Participation

Regular■ Making charitable donations■ The premier of the "Children Have a Future" public welfare micro-movie in April 2021.

Supplier Management

Irregular■ Organizing and supporting social welfare activities.

■ Held 31 online customer wealth management briefing sessions.

Irregular■ Holding wealth management, investment and health seminars.

Media

GeneralpublicGreen Operation

General shareholder’smeeting

Issuing annual
reportCorporate briefing

Stock affair service
center17

2021

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

Analysis of Material Issues
EnTie Bank refers to the four principles of the AA1000 Accountability Principles Standard and the GRI Standards of the Global Reporting Initiative:
materiality, sustainability context, integrity, and stakeholder inclusiveness, and analyzes major issues according to the steps of identification, sorting,confirmation and review.

Step

1

Identification

EnTie Bank first defines and identifies seven stakeholders based on the issues of concern to financial peers and the internal discussions of the report working group. The
working group then studies the international sustainable development trends such as the UN Sustainable Development Goals (SDGs) and the SASB Standards of thePerpetual Accounting Standards Board, grasps the context of sustainability, and identifies major issues with high impact in the three major aspects of environment, society
and corporate governance (ESG).

The Bank distributes questionnaires to representatives of various units and employees to learn about the experience of interacting with various stakeholders in daily operations, and conducts surveys on major issues such2

as "the degree of concern for stakeholders" and "the impact and degree of impact on the Company's operations" for an overall assessment to ensure materiality, completeness and inclusiveness of material issue outputs.

Sorting

The Bank then preliminarily ranks the impact and impact scores of material issues. Among the 18 material issues, there were 11 issues of high concern and 7 issues of continuous concern. Issues of high concern will be

Step

the focus of disclosure in this report, and correspond to related GRI themes to respond to the issues of concern to the seven stakeholders.

Step

3

Confirmation

Step

4

Review

The working group of this report further generates a matrix of material issues based on the scores of each material issue. In order to ensure that the identified results of major issues conform to the four principles of GRI,
the working group further invites senior executives to discuss the aforementioned results and distribution, and confirms the final matrix of major issues.

After the major issues are confirmed, the report will also clearly disclose the management policy and performance of each major issue. In the future, EnTie Bank will continue to maintain two-way and real-time diversified
communication channels with stakeholders, so as to truly grasp the needs and expectations of stakeholders and proactively respond to their concerns. Then, when the annual report is published, EnTie Bank will
re-examine the major issue matrix, and plan further communication with stakeholders according to the situation to confirm whether adjustments are necessary.

18

2021

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

Material Issues Matrix● Ethical Management
Corporate
Governance● Sustainable FinanceOperational and
Financial Performance

Talent Attraction
and Retention

Stakeholders' concern

Employee careerdevelopment

Legal Compliance● Information Security

Grievance andCommunication Mechanism● Supplier Management

Risk Management
Customer Service
and Protection

Climate Governance andStrategy

Employee Health andFriendly Workplace

Financial Inclusion● Digital Finance● Green Operation
Social Participation

Im p a c t o n th e C o mpany's oper ations

Environmental

SocialGovernance

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2021

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

Description of Material Issues and Impact Boundary
Impact Boundary

Material
IssuesCorporate
Governance

EthicalManagement

Operational and
Financial
Performance

GRI
Guidelines

GeneralDisclosure

Significance of Material Issues to the Bank

一
般
民
眾

Adhering to the Company's core values, and with sustainable operation as the goal, managing operational risks
and opportunities, promoting sound business development, improving operational performance and company
value, and increasing investors' willingness to invest.

Anti-corruption (205)
Anti-competition (206)

Economic
Performance(201)

Corresponding Section
and Chapter

InsideOrganization
Company
andEmployees

Outside organization

Customer

Government
Agencies

Shareholders/
Suppliers
Investors

Media

GeneralPublicSustainable
Governance

Implementing corporate integrity management, preventing corporate corruption, bribery and unfair competition,
ensuring compliance with internal management mechanisms and relevant laws and regulations, building
stakeholder trust and maintaining corporate image.

Sustainable
Governance

Strengthening the stability and transparency of business operations, embodying business philosophy andvision in work, improving financial and business performance, and being accountable to shareholders or

About EnTie

investors.

Integrating traditional risks (including financial and operational) and emerging risks (including political and
Risk
Management

Sustainable
Finance

GeneralDisclosure

economic events, environment and climate change), establishing risk prevention and management

Indirect
Economic
Impact (203)

Combining core functions, taking environmental sustainability as own responsibility, investing in renewablemechanisms, identifying risks, and formulating and implementing risk prevention and mitigation measures.

energy and other green energy-related financial products, supporting the renewable energy market, andachieving the environmental sustainability goal.

Sustainable
GovernanceGreen
Environment

Ensuring customer service quality and the protection of various customer rights, properly maintaining customer
Customer
Service andProtection

Marketingand Labeling(417)

relationships, improving customer satisfaction through various innovative services, gaining trust and creating a
win-win situation.

Products andServices

20

2021

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

Impact Boundary

Material
IssuesLegal
Compliance

Talent Attraction
and Retention

GRI
Guidelines

Significance of Material Issues to the Bank

一
般
民
眾

Socioeconomic
Compliance(419)

Ensuring that corporate governance and internal operating procedures comply with the latest laws andMarketPosition
(202)
Labor
Relations(401)
Employee
Diversityand Equal
Opportunity(405)
Nondiscrimination(406)

Establishing a competitive salary system, providing an equal and sound salary system, creating a diverse andregulations, while providing forward-looking prevention and consulting functions to eliminate the risks offoreseeable laws and regulations.

inclusive workplace, and eliminating any form of prejudice.

Corresponding Section
and Chapter

InsideOrganization
Company
andEmployees

Outside organization

Customer

Government
Agencies

Shareholders/
Suppliers
Investors

Media

GeneralPublicSustainable
GovernanceSocial Care

Mastering the latest financial trends, changing the financial service model through financial technology andinnovation, and providing more efficient and convenient products and services to create a better financial
experience.

DigitalFinance

CustomerPrivacy(418)
Information
Security

Employee
careerdevelopment

Training and
Education(404)

Products andServices

Maintaining the security of employees, customers, suppliers, shareholders and other stakeholders andoperation-related information, and avoiding leakage of or damage to operational data, confidential informationor personal data.

Products andServices

Establishing a talent development system, including talent cultivation, transparent promotion, employee careerdevelopment, job rotation mechanism, performance appraisal and other systems to enhance employee

Social Carefunctions and stimulate their potential.

21

2021

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

Impact Boundary

Material
IssuesClimateGovernance andStrategy

Supplier
Management

Inclusive
Finance

Employee Healthand Friendly
Workplace

Green
Operation

GRI
Guidelines

Economic
Performance(201)

Significance of Material Issues to the Bank

一
般
民
眾

Strengthening the prevention and responsiveness of enterprise to climate change, including climate risk
management and response to risks identified, greenhouse gas inventory and reduction measures, anddisclosure of carbon emissions information in the life cycle of products and services.

Procurement
Practice(204)
Supplier
Environmental
Assessment(308)
Supplier
SocialAssessment(414)
Indirect
Economic
Impact(203)
Labor
Relations(401)
Occupational
Safety and
Health (403)Energy (302)
Water andEffluent (303)
Emissions (305)Compliancewith Environmental
Protection
Regulations(307)

Corresponding Section
and Chapter

InsideOrganization
Company
andEmployees

Outside organization

Customer

Government
Agencies

Shareholders/
Suppliers
Investors

Media

GeneralPublicGreen
Environment

Paying attention to the sustainable management performance of different types of suppliers in terms ofgovernance, environment and society, gradually strengthening the development strategy of supply chains withcharacteristics such as local procurement and green procurement, and establishing effective communication

Green
Environment

channels.

Starting from the needs of customers, launching a diversified product portfolio to improve the accessibility,
usability and quality of financial services for the general public, including disadvantaged groups.
Implementing occupational safety, health and hygiene management, preventing and reducing the risk ofoccupational accidents or occupational diseases of employees, creating a sound employee care and welfare

Products andServices

Social Caresystem, and protecting employees’ rights and interests.

Promoting the reduction and management of energy and water resources and the effective use of raw
materials, effectively improving the efficiency of resource use, and reducing operating costs and environmental
impact.

Green
Environment

22

2021

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

Impact Boundary

Material
IssuesSocialParticipation

GRI
Guidelines

Indirect
Economic
Impact (203)
Local
Community(413)

Significance of Material Issues to the Bank

一
般
民
眾

Being devoted to community and public welfare activities, using corporate resources to help the general publicand disadvantaged groups solve problems, caring for community development, and building a good corporate

Corresponding Section
and Chapter

InsideOrganization
Company
andEmployees

Outside organization

Customer

Government
Agencies

Shareholders/
Suppliers
Investors

Media

GeneralPublicSocial Carebrand image.

Establishing a clear communication mechanism, so that stakeholders can immediately reflect their needs throughGrievance andCommunication
Mechanism

CustomerPrivacy(418)

different complaint channels, so as to properly maintain a good interactive relationship and build long-term trust.

Products andServices

23

2021

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

Sustainable Governance
Ethical corporate management is the cornerstone of corporate governance. The Bank implementscompliance with laws and regulations, internal audit and internal control, and effectively preventsand adjusts risks through risk management. Taking into account issues such as information
security, the Bank is striving for corporate sustainability.

Corporate Governance and EthicalManagement P.25

Legal Compliance, Internal Control,and Internal Audit P.30

Risk Management P.33

Information Security P.36

24

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix2021

Corporate Governance and Ethical Corporate Management
A sound, transparent and efficient board of directors is the foundation of good corporate governance. EnTie Bank's board of directors is the highest governance body of the company, providing strict
supervision and guidance for the management level. There are 11 seats on the board of directors, with 8 directors and 3 independent directors. Internally, the Bank attaches importance to ethicalcorporate management, formulates various guidelines for all employees to follow, and fully implements ethical corporate management through training, communication and reporting mechanisms.
Externally, the Bank attaches importance to the communication with stakeholders, ensures the rights and interests of shareholders, and improves the sustainable development of the enterprise.
公司正式名稱
Competencies to Be Owned by the Board of Directors

Corporate Governance
EnTie Bank has adopted the candidate nomination system and the single-registration cumulative
voting method for the election of directors, and has clearly defined the corporate governance structure,articles of association and management rules in accordance with relevant laws and regulations of thecompetent authority; under the supervision of the board of directors, the Bank has established the"Audit Committee" and the “Compensation Committee” to assist the board of directors in fulfilling its
supervisory responsibilities, strengthen corporate governance, and enhance the functions of the boardof directors. The Bank ranked in the top 6%-20% of the (1st to 8th) "Corporate Governance Evaluation"of the Taiwan Stock Exchange for 8 consecutive years from 2015 to 2022.
In May 2019, the board of directors also approved the establishment of a corporate
governance supervisor to assist the directors of the Bank to deepen the effectiveness ofcorporate governance, strengthen the supervision and guidance of the managementlevel, and ensure sufficient and smooth communication among the board members andbetween the directors and management departments.

Board Composition and Diversity

Corporate
Governance

EnTie Bank has a policy on gender equality and diversity of board members in the "Criteria for
Corporate Governance Best Practice Principles - Chapter 4 Strengthening of the Functions of theBoard of Directors". The Bank recruits directors with different professional backgrounds and thenecessary knowledge, skills and qualities to perform their duties; in addition, the Bank has set specificmanagement objectives for the diversity policy:(1) Corporate governance enhancement: No directors concurrently serve as company managers.
(2) Diverse professional backgrounds: One-third of the board members have a financial background.
At least one seat has a financial or accounting background.
(3) Emphasis on gender equality: Either gender has more than one-fourth (inclusive) of the board
seats.

Operational
judgment ability.

Accounting andBusiness

Risk

Crisisfinancial analysis

management

management

management

skills.

ability.

ability.

ability.

Industrial

International

knowledge.

market view.

Decision-making
Leadership.

ability.

EnTie Bank held the 2019 general shareholders' meeting on June 28, 2019 to elect the tenth term of
directors (including independent directors). The directors have a term of three years, from June 28,
2019 to June 27, 2022, and can be re-elected. The board of directors consists of 8 directors and 3
independent directors, including 3 female directors, with an average age of about 55 years old. The
board members are professionals from Taiwan, Japan, Australia, the United Kingdom, France andother countries, covering industry-academia experience in accounting, finance and technology,
providing supervision and assistance for the Bank's business and systems in different aspects.
The candidate nomination system is adopted for the election of the Bank’s directors. The proportion of
directors with employee status is 0%, the proportion of independent directors is 27%, and the
proportion of female directors is 27%. In order to ensure the independence of independent directors,
the independent directors selected and appointed by the Bank shall not serve more than threeconsecutive terms to enable them to exercise their powers objectively.
Gender equality and diversity standards are considered in the selection
and appointment of directors. For example, there are 3 female directors.
The directors have different professional backgrounds and work fields
such as accounting, industry and international markets. Both expertiseand gender balance are taken into account.

Age distribution of board directors
Below 50
years old2
60-69
years old

Above 70
years old

2
1

6
50-59
years old25

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix2021

Responsibilities and Operations of the Board of Directors

Functional Committee Responsibilities and Operations

Under the leadership of Chairman Jesse Ding, the board of directors met 7 times in 2021, and theactual attendance rate of the directors reached 100%. In order to establish and improve the corporate
governance system and continue to develop towards the goal of a "ethical, independent andtransparent" board of directors, various board responsibilities and operation standards have beenformulated, as shown in the following table:

Compensation Committee(established in 2011)

委員會職掌
Committee responsibilities
Performing the following duties and submitting recommendations toProcedures of the Board Meeting
Regulating the system and responsibilities of the board of
directors and the establishment and responsibilities ofvarious units under the board of directors, such as
ffu
functional committees (audit committee and compensationccoocommittee,etc.), the establishment principles andrreeresponsibilitiesof the audit office and secretarial office,aand providing the highest policy for the board meeting to
exercise its responsibilities and duties.

Board Responsibilities
At the board meeting, directors regularly listen
to operations-related risks and business,finance and reinvestment business situations
and audit reports, so as to adjust businessstrategies and policies in a timely manner,guide the management team, and remind the
setup of necessary control measures toachieve two-way communication, and create
the highest possible value for shareholders.
The following are the principles for theoperation of the board meeting.

Rules of Procedure for Board Meetings
Explaining the matters that must be paid attention to in theconvening and operation of board meetings, and assistingddirectors to pay attention to their own rights andoboobligations when performing their functions and powers,
sso
o as to set a good example of corporate governance.

Audit Committee(established in 2016)
公司正式名稱
委員會職掌

Committee responsibilities
To supervise the following matters:

the board for discussion.
◎ Formulating and regularly reviewing policies, systems,standards
and structures for performance evaluation and remuneration of directors
and managers.
◎ Regularly assessing and determining the remuneration of directors andmanagers.
◎ Setting and regularly reviewing performance appraisal standards and◎ Fair representation of the Bank's financial statements.
◎ Appointment (dismissal) of certifying CPAs and their
independence and performance.
◎ Effective implementation of the Bank's internal control.
◎ The Bank’s compliance with relevant laws and regulations.
◎ Management and control of existing or potential risks of the Bank.

remuneration standards for business personnel.

Committee composition and operation◎ Three meetings were held in 2021, and the averageattendance rate was 100%.
◎ Consisting of three independent directors, with independent
director Steven P. Thomas serving as the convener.

Committee composition and operation◎ Seven meetings were held in 2021, with an averageattendance rate of 100%.
◎ Consisting of three independent directors, with independent
director Philippe Espinasse serving as the convener.

Method for Election of Directors
In accordance with the Articles of Association of the Bank,
the nomination system and single-registration cumulative
voting method are adopted for the election of directors.

Responsibilities of Independent Directors
Regulating the responsibilities of independent directors
and the necessary resources to be provided by the boardof directors, in order to assist independent directors ineexercising their powers.

Directors’ Independence and Management of Conflict of Interest
EnTie Bank currently has 3 independent directors, who account for about 27% of the board of directors. The
Bank has formulated “Criteria Governing the Scope of Duties of Independent Directors” which stipulates
that if independent directors have objections or reservations, the opinions should be stated in the minutesof the board meeting, and the Bank shall not obstruct, refuse or evade the execution of business byindependent directors. When independent directors deem it necessary to perform any business, they may
request the board of directors to designate relevant personnel or hire experts to assist in the handling, Inorder to facilitate independent directors to effectively supervise the operation of the board of directors andbank operations based on their independence and expertise.
In order to implement the recusal of the interests of directors, in addition to being required to avoid according
to relevant laws and regulations, in accordance with the Bank’s Criteria of procedure of the board meetingand the Audit Committee’s organizational rules, if a director himself or the legal person he represents has
an interest in a matter at the meeting, he shall make an explanation at the current board meeting. If theimportant content of his personal interest is harmful to the interests of the Bank, he shall not participate in
the discussion and voting and shall abstain from the discussion and voting, and shall not participate in theexercise of voting rights on behalf of other directors.

26

2021

Board Performance Evaluation
With the board meeting’s approval, EnTie Bank established its "Board Performance Evaluation Policy" in
January 2020, and formulated the annual internal performance evaluation policy and process of theboard. The evaluation methods include the internal self-evaluation of the board of directors and functional
committees, the self-evaluation of directors, and the performance evaluation by an external evaluation
unit every three years. The evaluation should be completed before the end of the first quarter of the nextyear, and submitted to the board meeting for future reference. The evaluation results may be used as areference for selection or nomination of directors, and the results of individual directors' performance
evaluation will be used as a reference for determining the respective salary and remuneration.

Performance Evaluation Items for
the Board

Performance Evaluation Items for
Functional Committees

Performance Evaluation Items for
Board Members

Five major aspects and 43 indicators

Five major aspects and 23 indicators

Six major aspects and 24 indicators◎ Participation in the Company’s operations.
◎ Improvement of the board’s decision-making quality.
◎ Board composition and structure◎ Election of directors and continuing study◎ Internal control.

◎ Participation in the Company’s operations.
◎ Understanding of the Company’s goals and◎ Improvement of the board’s decision-making quality.
mission.
◎ Board composition and structure◎ Understanding director duties and◎ Election of directors and continuing study
responsibilities.
◎ Internal control.
◎ Participation in the Company’s operations.
◎ Internal relationship maintenance andcommunication.
◎ Expertise of directors and continuing study◎ Internal control.

Preface

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Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

For the unachieved item "the directors' attendance at the shareholders' meeting is good (the attendance
rate is more than 1/2)", the item is not achieved due to the level 3 alert of the pandemic. In order to comply
with the attendee number limit of the guidelines on pandemic prevention operations for the shareholders'meeting, the number of directors attending the general shareholders' meeting this year was 3 (theattendance rate did not reach more than 1/2), and it failed to meet the target. However, the Bank held anextraordinary shareholders’ meeting on December 2. Due to the easing of the pandemic situation, theattendance of directors met this target.

Board Performance Evaluation Process
Complete the internal
performance evaluation of
the board of directors andfunctional committees
before the end of the firstquarter of the next year.

Report to the board
meeting for recordationin the first quarter of thenext year.

Disclose internal performance
results, and develop specificimprovement plans for
non-compliance indicators.

The evaluation results areused as the reference fornominating or selecting
directors and determining
the individual salary andremuneration of directors.

The evaluation is carried out by an external professional independent organization every three years.

The 2021 internal performance evaluation of the board of directors and functional committees were
submitted to the 15th meeting of the tenth board of directors on January 13, 2022 after the evaluation of
all directors, the board of directors, and the deliberation units of functional committees. The evaluation
results showed that only the second of the board evaluation items did not meet the standard, and the rest
met the requirements; this shows that the overall operation of the Bank's board of directors and functional
committees is sound and in line with the requirements of corporate governance, and all directors gave fullplay to their capabilities to fulfill the duties of a director.

27

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

2021

Ethical Corporate Management
In order to ensure that the Bank's internal operations implement the ethical corporate management policy,
hone the morality of employees, and establish a good standard of ethical behavior, the board meeting of
the Bank has formulated the "Criteria for Ethical Corporate Management"; in addition, the Management
Committee, which is composed of three directors and attended by the senior management, discussed
and formulated the "Rules for Operational Procedures and Code of Conduct for Ethical Management",
and later established the Criteria for Prevention of Insider Trading, the Code of Ethical Conduct and therelevant misconduct reporting system.
In 2020, the Bank will further promote the signing of a declaration of compliance with the ethical corporate
management policy by directors, the senior management and new employees. Under strict systems andchecks, EnTie Bank did not involve any fraud, insider trading, anti-competition behavior, antitrust andmonopoly behavior and market manipulation behavior, nor corruption and bribery and other violations of
ethical corporate management in 2021.
As of 2021, the ethical corporate management promotion work completed is as follows:◎ Formulated the "Guidelines of Prevention of Insider Trading" to prohibit insiders from using theunpublished information they know to engage in insider trading, or divulge it to others for insider
trading.
◎ In accordance with the "Implementation Rules of Internal Audit and Internal Control System ofFinancial Holding Companies and Banking Industries" revised by the Financial Supervisory
Commission, the Bank formulated the "Criteria for Implementation of Insider Misconduct
Whistleblower System” to actively prevent the unethical and immoral behavior of insiders, and theapproval level of the above-mentioned guidelines was raised to the board meeting.
◎ Established a mechanism for reporting misconducts, provided an open and transparent reporting
method for internal and external personnel, and encouraged the reporting of misconducts.
◎ The standard operating procedures for the investigation of reported misconducts are set out in the"Criteria for Implementation of Insider Misconduct Whistleblower System"; the matter shall betransferred to the investigation unit for investigation according to the level of the reported person, andattention shall be paid to the avoidance of interests. The Guidelines also provide a misconduct
reporting confidentiality mechanism to ensure the rights and interests of whistleblowers.
◎ If the investigation results prove that the person reported has indeed violated the relevant laws andregulations, the Bank's Code of Ethical Conduct or ethical corporate management related provisions,the person reported shall be immediately required to stop the relevant behavior, and the matter shallbe handled appropriately in accordance with the internal regulations of the Bank; if necessary, damage
compensation shall be sought through legal proceedings in order to safeguard the reputation andrights and interests of the Bank.

◎ Formulated the "Criteria Governing Codes of Ethical Conduct" to guide the conduct of directors andmanagers of the Bank to comply with ethical standards, and make stakeholders of the Bank better
understand the ethical standards of the Bank.
EnTie Bank adopted a rolling review on the relevant norms of ethical corporate management to effectively
supervise the implementation and progress of ethical corporate management of the Bank. At the
beginning of 2021, the Bank evaluated the operation processes and compliance of ethical corporate
management, and made an annual report to the board meeting as the basis for follow-u implementationand improvement.

Training and Advocacy
Since 2016, EnTie Bank has included the publicity of ethical corporate management in the bank-wide
online statutory training courses and the legal compulsory courses for new comers. All on-the-job
employees are required to complete the training courses and ethical corporate management risk
self-assessment, with a completion rate of 100%; in addition, there will also be relevant compulsory
courses for new comer training. The online ethical corporate management training for all employees in
2021 included the importance of ethical corporate management and ways to avoid violations, theadvocacy of important norms of the Bank's ethical corporate management policy, examples of bank
employees' misconducts, the Bank's specific actions to ensure ethical corporate management, and theethical corporate management risk self-assessment questionnaire. Relevant internal regulations are also
disclosed on internal and external websites, and a reporting channel is set up for customers andemployees to report unethical behaviors, so as to achieve comprehensive and transparent
communication. In addition, training is conducted to the board of directors on a regular basis every year
to convey the Bank's ethical corporate management policy to all directors and senior executives. In 2021,
all 11 directors attended the training, and the completion rate was 100% Completing. The advocacy andtraining of the staff, senior management and directors was successfully completed.

Ethical Corporate Management Online Course
Number of people trained

Training completion rate

1,447

100%

Corporate Governance
Major Internal Policies

28

2021

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

Reporting Channels and Whistleblower Protection
In order to implement the criteria for ethical management and codes of ethical conduct, andencourage employees to report any illegal conduct or violation of laws and regulations, theBank established the relevant misconduct reporting system and handling points for the ethicalcorporate management policy and code of ethical conduct of employees, managers anddirectors, and later expanded and revised them into the "Criteria for Implementation of Insider
Misconduct Whistleblower System, EnTie Bank". The current misconduct reporting channels
include the "misconduct reporting mailbox", "misconduct reporting hotline" and "misconduct
reporting fax". Through all reporting channels, employees and outsiders of the Bank may reportany financial, moral, integrity and suspected improper or illegal acts within the Bank, as longas they provide relevant information such as specific evidences and contact information. The
Bank adopts a confidential and prudent attitude towards the misconduct reports received andsubsequent investigations. In addition, for those misconduct reports verified to be true, thereporting person may be rewarded according to the severity of the matter reported; in case ofa false report or malicious accusation, it may also be handled in accordance with the relevant
punishment provisions according to the severity of the circumstances, so as to achieve
substantial rewards and punishment. If the matter reported is verified to be true, theresponsible business unit shall review the relevant internal control and operating procedures,and propose improvement measures to prevent the recurrence of the same situation. The
following table shows the number of cases reported through the misconduct reporting mailbox
and telephone line, and the number of cases that have not been established after investigation
over the years.

4

0

2

2017

2018

2019

0 3

0

0

0

0

0

2020

2017

2018

2019

2020

2021

Number of cases received

2021

Number of cases establishedafter investigation

29

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

2021

Legal Compliance, Internal Control and Internal Audit
EnTie Bank proactively pays attention to the changes in financial policies and laws implemented by the competent authorities, takes the initiative to respond to changes in laws and regulations, immediately adjusts various
internal regulations, and implements regular employee communication and training in order to strictly abide by the norms. Continued to refine and improve internal management through internal control and audit systems.

Legal Compliance

Implementation of the policy and law compliance plan

In accordance with the "Implementation Rules of Internal Audit and Internal Control System of Financial
Holding Companies and Banking Industries", EnTie Bank formulated the "Criteria for the Implementationof Legal Compliance", and set up a Chief of Legal & Compliance Officer, with the position on the samelevel as the Vice President, to act as the head office chief compliance officer and take charge ofcompliance affairs. In addition, the Legal and Compliance Department is responsible for the planning,
management and implementation of the Bank's compliance with laws and regulations, The Chief of Legal& Compliance officer shall report to the Audit Committee and the board meeting on the implementation of
the Bank's compliance with laws and regulations every six months. The Bank has legal compliancesupervisors in the management unit of the head office, the personal finance branches and the regional
center of consumer finance to promote the handling of legal compliance matters and implement the
introduction, establishment and implementation of the Bank's internal norms. As of the end of 2021, theBank has a total of 91 legal compliance personnel, include 1 Legal Compliance Director, 7 supervisorsand subordinates at the legal compliance unit, and 83 supervisors at all legal compliance units.

In addition to conducting the quarterly "inspection of the Bank's internal regulations in compliance with theamendments and promulgation of external laws and regulations", and the semi-annual bank-wide legal
compliance self-assessment and annual legal compliance assessment, EnTie Bank's compliancebusiness, in compliance with the spirit of the "Code of Practice for the Three Lines of Defense of Internal
Control of Banks" formulated by the Bankers’ Association, analyzes the deficiencies in audit andoperational risk compliance, and puts forward countermeasures for improvement opinions for thereference of units with deficiencies.

1

2

3

On September 23, 2021, the Financial Supervisory Commission issued amendments to the "Implementation Rules of Internal Audit and Internal Control System
of Financial Holding Companies and Banking Industries". The Bank has complied with these amendments and decided at the 14th meeting of the 10th board of
directors on November 4, 2021 that the Information Security Director position of the Bank would be concurrently held by the Chief Operating Officer Arens
Chang, Vice President, and the appointment would take effect on November 5, 2021. In addition, the overall implementation of information security was includedin the statement when issuing the Bank's 2021 internal control system statement.
On December 8, 2021, the Taiwan Stock Exchange announced amendments to some provisions of the “Corporate Governance Best Practice Principles for
TWSE/TPEx Listed Companies”. The Bank intends to comply by amending the relevant provisions of the "Corporate Governance Best Practice Principles of
EnTie Bank”:
A. Add the provision that video conferencing should be used to assist the shareholders' meeting when the Bank holds a physical shareholders' meeting.
B. In order to prevent insider trading, the Bank's directors shall not trade shares during a certain period before the announcement of annual and quarterly
financial reports.
C. Integrate from 13 items into 4 items the information about corporate governance that should be disclosed; and retain the 4 items that should be disclosed withreference to Article 71 of the “Corporate Governance Best-Practice Principles for Banks”.
These amendments are expected to be submitted to the 17th meeting of the 10th board of directors of the Bank on May 6, 2022 for approval.
In order to strengthen the monitoring mechanism of the related accounts of wealth management specialists, the Bankers’ Association announced on August 31,
2021 the amendments to the "Internal Control Operating Principles for Banks to Prevent Wealth Management Specialists From Misappropriating Customer
Funds", which will take effect on January 1, 2022.
The Bank's countermeasures to comply with the aforementioned amendments are as follows:
A. Set up an "independent organization" under the Personal Finance Operation Management Department to implement the transaction monitoring proceduresof the wealth management specialists, and carry out the follow-up investigation of abnormal transactions.
B. The current Monitoring Table of Abnormal Transactions by Wealth Management Specialists is updated according to the examples of the four patterns provided
in the "Patterns of Suspected Misappropriation of Customer Funds by Wealth Management Specialists" and based on the resources provided by the AML
system.
C. In line with the setup of the independent organization mentioned above, and in accordance with the requirements of strengthening the management ofaccount statements and verifying the correctness of customers' e-mail boxes, the Bank amended the "List of Layered Responsibilities of Personal FinanceOperation and Management of the Personal Finance Head Office” and the relevant internal norms of wealth management.

Communication and Training
In order to ensure that all employees understand various internal and external regulations and laws, andfully implement them in every link of the daily work, EnTie Bank not only immediately provides employeeswith the latest laws, regulations and sanction cases in digital form, but also propagates to the employeesby all units the compliance with laws and regulations at morning and evening meetings. In terms of
training, in addition to the existing statutory training, the Bank provides a number of internal training todeepen the knowledge and concepts of employees, so as to fully implement legal compliance. Detailed
employee communication and training methods are as follows:

Internal communication
In order to enable all employees to obtain the latest information immediately, the Legal Affair and Compliance Department will disclose the information about theamendments and implementation of relevant financial laws and regulations at any time in the form of electronic announcement, and the legal compliancesupervisor of each unit will propagate compliance to the staff at the morning and evening meetings. The relevant teachings should be recorded in the legal
compliance system teaching record form and sign-in form and put on file for reference.

Education training
Statutory training
In 2021, the on-the-job training of legal compliance personnel was handled via the group online courses of Taiwan Academy of Banking and Finance due to thepandemic. According to the "Implementation Rules of Internal Audit and Internal Control System of Financial Holding Companies and Banking Industries", all legal
compliance personnel who should receive on-the-job training should complete the required hours of courses in accordance with the Rules.

Internal training
In addition to the established courses of "Anti-money laundering", "Personal data protection", "Employees’ obligation of confidentiality" and "Principle of fair
hospitality", the training course of "Implementation of legal compliance and review of punishment for major deficiencies" was added to the training conducted
throughout the Bank in 2021 in order to enhance the legal compliance awareness of all employees and refine the legal compliance culture of the Bank.

30

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

2021

2021 in-house legal compliance training courses

Anti-money laundering management framework

AML/CFT
Committee

Course name
◎ Training on the principle of fair
hospitality◎ Implementation of legal complianceand review of punishment for major
deficiencies◎ Advocacy of employees’ obligation ofconfidentiality and personal dataprotection Act

Number of sessions in
the year◎ A total of 3 sessions were offered◎ One session was offered◎ One session was offered

Training objects◎ All employees
AML/CFT
Execution Team

RetailOperation
Management

Legal andCompliance
Information
Services

Consumer
CreditManagement
Business
Supporting

Corporate
Business
Management

Trust
Insurance
Brokerage

Corporate
CreditManagement
Risk
Management

2021 statutory training courses(Anti-money laundering and countering
terrorism financing) special course in
March

2021/3/30 - 2021/4/16

2021 statutory training courses(Anti-money laundering and countering
terrorism financing) special course in
October

2021/10/25 - 2021/11/22

Number of participants

Number ofpeople retrained

1 1,484 6
hour

hours

2021/11/22∼12/31

Number ofpeople retrained

1 1,441 34
Number of participants

hour

hours

2021/11/22∼12/31

31

2021

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

Internal Control and Audit

Audit Notification and Contact Mechanism

EnTie Bank followed the "Code of Practice for the Three Lines of Defense of Internal Control ofBanks" formulated by the Bankers’ Association and established its three lines of defense ofinternal control, to clearly define the scope of the rights and responsibilities of the three lines ofdefense, and the roles and functions of all units in the overall risk and control structure tostrengthen the communication and coordination of risk management and internal control. The
three lines of defense perform their respective duties.

The Auditing Department of the Bank has established relevant contact and feedback
mechanisms for the operation of internal notification of audit business, including the following:

The Auditing Department is established in accordance with the provisions of the "Implementation
Rules of Internal Audit and Internal Control System of Financial Holding Companies and Banking
Industries" of the Financial Supervisory Commission, and is subordinate to the board of directors
to assist the board of directors and the management in auditing and evaluating the internal
control system to ensure its continued effectiveness. The Auditing Department carries out theaudit business independently and honestly. Its main work is to conduct the audit business of the
Bank according to the annual audit plan, guide all units to conduct self-inspections, regularly
track and review the improvement progress of internal and external audit deficiencies, andregularly report the implementation of the audit work to the independent directors, the Audit
Committee and the board of directors. It has considerable benefits for the Bank’s overallbusiness, organizational operation and the implementation of system establishment.

1

For internal and external audit deficiencies, the Auditing Department will forward or raise
written comments to the responsible unit to respond with improvement measures, and
the Auditing Department will follow up on the improvement process accordingly.

2

The Auditing Department collects the important deficiencies from the audits every
quarter and provides them to the Legal and Compliance Department to assess
the legal compliance of each unit.

3

The Auditing Department notifies and contacts the independent directors, theAudit Committee and the board of directors irregularly and regularly, including:▪
Preparing and submitting the "internal audit report" to the board of directors
every quarter.
▪
Reporting the audit business to the Audit Committee every six months.
▪
Holding the "audit seminar with board directors" every year.

The Bank was not punished by the Financial Supervisory Commission and there were no casesof monetary losses caused by related litigation in 2021.

In 2021, the Bank prepared an annual audit plan in accordance with the "Implementation Rulesof Internal Audit and Internal Control System of Financial Holding Companies and Banking
Industries", and completed various audits in accordance with the audit plan, including afull-scope audit and a target audit on domestic operations, finance, asset custody andinformation units at least once a year, and a target audit on other management units at least oncea year. The actual audit frequency is in compliance with the regulations of the competentauthority.
In 2021, there were no significant deficiencies orabnormal matters on institutional aspects.

32

2021

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

Risk Management
EnTie Bank attaches importance to risk management and has established a sound management systems
and procedures to effectively measure and monitor risks, and has developed management and control
measures for identified risks. The scope of risk management includes credit risk, market risk, interest raterisk in the banking book, operational risk, liquidity risk, strategic and reputation risk, etc. The Bank pays
close attention to the global risk situation and adjusts the relevant implementation procedures in a timely
manner.

Organizational Structure and Management Mechanism of Risk Management
In order to effectively supervise all kinds of risk management affairs and ensure that the performance of
the Bank's risk management complies with the Bank's risk management policies and the relevant normsof the competent authorities, EnTie Bank has a "Risk Management Committee", with the President as theconvener, which holds regular meetings every two months and regularly submits risk management
reports to the board meeting.
In 2021, the Risk Management Committee held a total of 6 meetings.

Organizational Structure and Management Mechanism of Risk Management

Auditing
Dept.

EnTie Bank effectively identifies, measures, supervises and controls various risks in accordance with the"Risk Management Policy and Procedures " approved by the board meeting which serves as an importantbasis for risk management. When engaging in various businesses, the Bank shall, in accordance with theprinciples revealed in the policy above, control the possible risks within an affordable range, and achieve
the goal of rationalized risks and rewards while ensuring capital adequacy.

President
Risk Management
Committee

Risk measurement

Key Risk Indicator and Risk

risk database

Control Self Assessment

stress testing

Risk control

Risk communicationinternal rating and risk gradinginternal and external notification

management and limit management

and response measures

ALM
Committee

Strategic Planningfor RiskManagement

Senior Managements
Risk Tactics Planning

The First Line of
Defense Level

Chief of Legal& Compliance
Officer

CFO

The Second Line of Defense Level

All Business Units

Legal & Compliance

Risk Management

Operations with Risk
MindsetExecution of Risk
Controls

Execution of Risk
Controls

Risk management procedures
Risk identification

Risk Culture
Establishment

The Third Line of
Defense Level

Chiefs ofBusiness Units

Risk Management Policy

Note 1:
Management Committee is established for the Board's purpose ofreviewing the business strategy, effective execution and reaching thebusiness target. Management Committee is composed of at least
three directors designated by the Board. It is equivalent to the Board
of Executive Directors.

The Board¹

Credit Risk

Market Risk

Operational
Risk

Three Lines of Defense for Risk Management
First line of defense

Second line of defense

Third line of defense

As the first line of defense for risk
management, each unit of the Bank is
responsible for identifying and managing
risks, and designing and implementing
effective internal control procedures
according to risk characteristics, so as toensure that operating activities are
consistent with the objectives and tasksof the Bank.

Including the Risk Management Department,
Legal and Compliance Department and otherdesignated units, which are responsible forthe formulation of the overall Bank's risk
management policy, supervising the overallrisk bearing capacity and the current situationof risk tolerance, and reporting the situationof risk control to the board meeting or senior
management.

The Auditing Department carries out theaudit business independently and honestly,
and assists the board of directors and senior
management in auditing and evaluating theeffective operation of risk management andinternal control systems.

33

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

2021

Risk Management Scope
EnTie Bank divided the main risks into six categories, and formulated different measurement and control methods according to the risks of different businesses to minimize risks, so as to provide thebest service and build a stable enterprise foundation.

Credit risk
Measurement method

Basic Indicator Approach

Control method

Capital accrual / Notification mechanism of operational risk events /Risk Control Self Assessment

Measurement method

Standardized approach / Credit rating / Historical simulation / Special scenario stress test

Control method

Capital requirement / Provision for losses / Credit limit management / Credit mechanism /Post-lending management / Non-performing debt management / Risk concentration

Major source (by business) Daily operating activities
Major source (by unit)

The whole bankmanagement / Investment limit management
Major source (by business) Credit / Investment

Operational risk

Major source (by unit)

Major source (by business) Deposits / Loans / Investment
Corporate Banking and Markets Group / Retail Banking Group

Risk Management
Scope

Measurement method

Standard method / Fair market value evaluation / Stress testing

Control method

Capital accrual / Investment limit management / Stop-loss mechanism

Major source (by business) Financial products / Hedging / Investment
Major source (by unit)

sk

Ri

sk

control 。

RiManagement of the gap between the maturity structure of assets and liabilities / Liquidity gap analysis and。

Loan to deposit ratio / Liquidity reserve ratio / Stress test / Liquidity coverage ratio / Net Stable Funding ratio

Control methodtMeasurement method

Strategic andreputation risk
Measurement method

funding scenario / Sufficient and stable sources of funding to support the Bank’s business activities over a
Major source (by business) Deposits / Credit / Investment
Major source (by unit)

The whole bank

Any occurrence of significant damage / Legal restrictions / Exceptional deposit withdrawals
Huge capital loss or severe shortage of liquidity or other significant events which may

management / Emergency response plan / Sufficient high-quality liquid assets to withstand a 30-day stressed
longer time horizon

Corporate Banking and Markets Groupen

Liquidity Risk

Market risk。

co

Major source (by unit)

identification

measurem

IRRBB economic value and earnings-based measurement indicator limit managementksk

fluctuation scenario / Ratio of total ΔEVE of each currency to tier one net capital
Control method

mmunication

The impact of each currency on earnings in the next 12 months under the interest rate

R

is

Ri

Measurement method。

Interest rate risk inthe banking book

Corporate Banking and Markets Group / Retail Banking Group

cause operational crisis
Control method

Internal and external notification / Establishment of an operational crisis management teamTaking contingency measures / Subsequent handling

Major source (by business) Operating activities / Other significant events
Major source (by unit)

The whole bank

34

2021

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

In response to the worsening of the pandemic, the Bank has set up the "pandemic prevention response team" todiscuss and implement various response and contingency mechanisms, and implement various pandemic
prevention measures such as "working in different places, working hour diversion, purchasing pandemic prevention materials, and purchasing pandemic prevention and vaccine insurance" according to the development of thepandemic.

Business continuity assurance
1.Timely start the mechanism of flexible diversion of working hours and off-site officemechanism.
2.Implement the pandemic prevention health management and notification mechanism.
3.Formulate the Customer Service Center’s backup plan implementation process.
4.Formulate countermeasures for business unit personnel who need isolation.
5.The IT Department is required to do a good job in information security protection andmonitoring.

Maintenance of office environment security

Pandemic Response

Emphasis on employee care measures
1.Employees may apply for pandemic prevention care leave and vaccination leaveas needed.
2.Purchase pandemic prevention and vaccine insurance to protect the health andsafety of employees.

Disclosure of Capital Adequacy Management

1.Regularly clean and disinfect office environment, and purchase and supplement pandemic
prevention materials.
2.If it is necessary to hold a meeting, do it by teleconference as far as possible.
3.Replace physical training courses with online training.
4.When entering the business hall, customers need to have their temperature measured, wear
masks and have their contact phones and addresses registered.
5.Strengthen the disinfection with alcohol of areas easily accessible by customers.

Crisis Response Mechanism

The capital adequacy ratio of EnTie Bank is calculated in accordance with the Financial Supervisory
Commission's "Regulations Governing the Capital Adequacy and Capital Category of Banks" and "theMethods for calculating Bank’s regulatory capital and Risk Weighted Assets". The following table
presents the results of the stress test conducted in accordance with the "Stress Test Plan for Domestic
Banks" issued by the FSC and the set scenarios:

Common equity
ratio
Tier one capital
ratio
Capital adequacy
ratio
Leverage ratio

About EnTie

Establishment of an emergency response mechanism for pandemic prevention

Pandemic Response

Item

Preface

Base date(December 31, 2021)

Mild scenario

Severe scenario

Statutory standard

16.50%

16.32%

15.29%

7.0%

16.50%

16.32%

15.29%

8.5%

17.69%

17.03%

16.00%

10.5%

9.74%

9.68%

9.13%

3.0%

EnTie Bank, in accordance with the Specifications issued by the competent authorities, formulated the"Criteria for Crisis Management ", "Business Continuity Management Policy", "Rules for Emergency
Response to Disaster Recovery" and "Criteria for Security Maintenance Operations ". According to thecontingency plans above, the Bank has an emergency response team, an emergency contact andnotification mechanism, a safety maintenance steering group, crisis handling procedures, businessrecovery measures and customer service expediency measures. In case of a major crisis, the Bank willhandle it in accordance with these plans and relevant regulations. The Bank has separately formulated
the "Form for Distribution of Responsible Matters of All Departments and Offices on Significant
Information and Reporting Procedures" as the basis for the Bank's major information processing anddisclosure mechanism, and will review and refine these operating procedures from time to time to meetthe requirements of current laws and regulations and practical management.

According to the stress test results, the relevant ratios of the Bank's capital adequacy
are still far higher than the statutory requirements, indicating that the Bank's own
capital is sufficient and its capital adequacy is sound.
Capital Adequacy and
Risk Management Area

35

2021

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

Information Security
EnTie Bank continues to improve information security management and strengthen protection; in addition
to setting up a clear management mechanism and a dedicated unit to deal with information security
protection, the Bank also continues to improve the information security concept of all employees throughtraining and advocacy, and supplement it by a notification process to ensure comprehensive
implementation and management.
There were no complaints of privacy violations and the supervisory authorities have not received any
notification of relevant complaints in 2021. In addition, in 2021, there were no information leakage
incidents, and there were no information leakage incidents related to personal information and affectedcustomers.

Information Security Objectives and Strategies
In order to maintain the information security of the operating environment and the concept of customer
service, EnTie Bank, in addition to its daily rigorous information security control measures, regularly
revises its internal rules in accordance with the relevant information security regulations of the competentauthorities, and refines its information security management operations to improve the quality of its
services. The goal is to establish a safe working environment and provide effective, correct and rapid
services. At the same time, in line with the implementation of the financial information security action plan,
the Bank formulated the introduction schedule of the international asset security management standard
ISO27001, in order to achieve a safer and more convenient financial service vision.
In order to effectively implement information security, the Bank has set up the following dedicatedinformation security units and organizations to implement information security related management
operations.

Information Security Management Mechanism
The Bank's information security management mechanism is based on the deployment ofprotection mechanisms through the application of technology, the continuous inspection ofinternal operating procedures and norms in accordance with laws and regulations, and thecontinuous implementation of information security in the daily business. The following are theBank's current key mechanisms and measures for information security management.

Network defense
mechanism

In the three aspects of Internet, DMZ and Intranet, we have established a rigorous
network architecture and various defense mechanisms, including firewall, network
intrusion defense, endpoint protection system, network application firewall, spam
defense system, data leakage protection system, Microsoft directory service system,
vulnerability and source code scanning tool and personal data scanning tool, so as
to avoid threats to information security and ensure the information security of the
Bank.

Information security
scenario drill

In order to strengthen the personnel's ability to respond to security risks, various
program drills (such as DDoS, SWIFT and ATM) are carried out for different security
scenarios, and backup drills, disaster recovery drills, and social engineering drills
are held regularly.

Application security
management

Regularly implementing the security inspection of mobile device apps, and obtain
the basic security inspection certificate of mobile apps, so as to maintain the securityof the mobile apps provided.

Information andmonitoring of
information security

In response to the increasing types of information security threats, the Bank joined
the F-ISAC in 2018 for the sharing and notification of mutual information security
information to grasp immediate threats and attacks in a timely manner, and block
them in defense to prevent information security hazards. In addition, the Bank set up
the SIEM event monitoring platform system in 2021 to monitor the Bank's network
traffic and external threats, identify attacks in a timely manner, avoid asset security
hazards to improve the overall information security.

Computer system
information security
assessment

In order to maintain the security of the Bank's information equipment and computer
systems, we regularly handle computer system information security assessment
projects every year to find out the threats and weaknesses of information security intime, and implement technical and management related control measures, so as toimprove and enhance the security protection ability of networks and information
systems.

36

2021

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

Digital data protection and contingency measures

Information Security Incidents and Notification Process

EnTie Bank is committed to protecting the rights and interests of customers and taking relevant protective
measures for the protection of customers' digital data, so as to ensure the security of digital data andreduce possible damage in case of accidents.

In order to strengthen the notification and response handling of information security incidents, the Bank
has established information security incident notification and handling procedures; for internal andexternal notifications, the level of notification will be graded and standardized according to the hazard
degree of information security incidents, so as to facilitate the immediate handling of information security
incidents and reduce the risk of damaging key information assets and operations. Please refer to thefollowing figure for the information security incident notification process. External
stakeholders may use the "Contact Us" page of the Bank's official website or directly
contact customer service personnel to appeal.

Personal data scanning operation andrelevant protective measures

Hardware control measures

The Bank regularly scans the computer data to ensure that all

The Bank has set up security measures such as access control, fire

personal data are encrypted. In addition, the Bank adopts a strict

prevention equipment and guards in the Neihu information room tomonitoring

prevent natural disasters and man-made strong and deliberatemechanism

for

the

transmissionofpersonal

information to the outside to ensure the safety of personaldestruction.

Information Security Incident Reporting Workflow

information.

Remote backup mechanism

Disaster recovery procedures

The Bank's off-site backup center is located in Acer’s Longing

Relevant disaster recovery procedures are formulated in the Bank's

Park in Longtan. The Center has a dedicated backup host and a"Information Center Disaster Recovery Management Operating

hot site instant backup mode, and regularly holds a disaster

Rules". In case of major disasters, priority should be given to

backup drill every year to ensure the availability of remote backup

protecting employees, and operations should be resumed in thesystems.

shortest time to protect the rights and interests of customers andensure the sustainable operation of enterprises.

Training and Advocacy
EnTie Bank continues to strengthen information security training for employees, and regularly
implements social engineering drills and training courses for employees throughout the Bank, so as toimprove their awareness of information security threats and embed the information security culture in
their daily work. The Bank has formulated "Key Points for Information Security Conduct" to regulate
employees' correct use of information systems, avoid unnecessary information security threats andreduce management costs; the Bank also stipulates that information security personnel must receive
more than 15 hours of information security professional courses or information security function training
every year, and all employees must receive 3 hours of information security training, understand emerging
information security threats, and establish good information security concepts and operating habits toimprove service quality.
In addition, through the internal bulletin board, the Bank publicizes the information about the recent major
information security events as well as the information security internal regulations amended
synchronously by the Bank in compliance with the latest regulations of the competent authorities, andimmediately provides them to employees as the basis for information security prevention andcompliance.

Event Unit
Finder

Incident
happened

Operational
Risk
Notification

Operational
Y
risk

Major
incident

N

Event Unit
Notification
WindowN

informationY
security

Information
Security
Incident
Response
Team

Determining levelof information
security incidents

Incident
Handling
Department

Proposeincident
solutions

Department
HeadHandling
the Incident
Information
SecurityTeam
Meeting

Y

ContactMajor
occasional
notification

N

Verbal, mail orexception notification

Relevant datacollection andcompilation

Fill out theincident Log
reportInformation
Security Incident N
Level 2

Y

Incident
handling

N

Agree

Y

Fill out the
exception
notification form
within one day

Report to
Department
Head

Corrective
measuresprogresstracking

Case
closed37

2021

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

Products and Services
Taking customer needs as the starting point, EnTie Bank provides diversified financial products
and services, integrates technological innovation to create a digital financial service ecosystem,
and is committed to maintaining high-quality services and protecting customer rights and interests.

Financial Inclusion P.39

Digital Finance P.44

Customer Service and Protection P.47

38

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Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

Financial Inclusion
EnTie bank has always been committed to providing effective and comprehensive financial services for
all people in the society, implementing Inclusive finance in terms of environment, communication,
services, information and rights protection, and providing convenient and friendly financial services forall economic groups. With the social trend of aging, fewer children, and a widening gap between urban
and rural areas and between the rich and the poor, EnTie Bank has continued to pay attention to theimpact of social changes, and actively responded to the G20 inclusive financial indicator system, as
well as SDG 1 of the UN Sustainable Development Goals to end poverty and SDG 10 to eliminate
inequality, and launched a number of inclusive financial products and services in its core business.
The core definition of inclusive finance includes the three aspects of access, usage and quality offinancial services. Through continuous improvement of financial infrastructure and with responsible
and sustainable business philosophy, EnTie Bank meets the real financial needs of different vulnerable
groups due to age, economic status and physical and mental disabilities, so that everyone can enjoy
immediate, convenient, stable, diverse and accessible services, and puts the spirit of inclusive financeinto practice. EnTie Bank will also continue to improve financial products and services based on the 21
indicators of inclusive finance established by the Financial Supervisory Commission in early 2020, so
as to be closer to the needs of all people and enterprises.

Financial Service Accessibility
The purpose of improving the accessibility of financial services is to ensure that financial consumers
can obtain financial services in a convenient and friendly way, especially for the barriers faced byvulnerable groups, in emergency situations, or physical and mental difficulties or language barriers.
EnTie Bank provides corresponding services especially for persons with physical and mental
disabilities and foreigners.

Financial Services for the Physically and Mentally Disabled
In order to provide various friendly financial services for people with physical and mental disabilities
and ensure that vulnerable groups fully share basic, equal, reasonable and convenient financial
services, the Bank’s scope of friendly financial services for vulnerable groups includes barrier freemeasures for the environment, communication, services, information, verification and rights protection,and the key items include providing barrier free services, barrier free ATM services, barrier free Internet
services, telephone services, and account opening or loan services. The current number of users ofbarrier free internet banking provided by the Bank is shown in the table below.
Account opening
application andloan services

When opening an account or applying for a loan with the Bank, visually impaired people are able to understandthe contents of the contract to protect their rights and interests. In addition to being accompanied by their relatives
or friends, they can choose to use "notarization in accordance with the provisions of the Notary Act" or "a bank
employee who is not in charge of account opening" to help.

Barrier free service inbusiness locations

EnTie Bank is committed to building a barrier free environment by setting up love and care service bells, lowservice counters or special service counter areas in its 50 business locations in Taiwan, and providing guidanceservices for physically and mentally disabled customers. Incoming customers who need assistance may get therequired services at the first time. Some business locations are equipped with barrier free ramps. In order toprovide convenient services for people with hearing impairment, all business locations also provide card issuingand loss reporting services for people with hearing impairment.

Barrier free ATMs

All automatic teller machines (ATMS) of EnTie Bank have been replaced with models suitable for the disabled, of
which two are also suitable for the visually impaired, so that both physically and visually impaired customers canenjoy a safer and more convenient financial trading environment. Physically and mentally disabled people also
have three interbank ATM withdrawals per month free of handling charges.

A bank withfriendly services

EnTie Bank is a bank with friendly services (with an official website, personal internet banking and mobilebanking) and has obtained the A-level mark of the Accessibility Specifications version 2.0 of the National
Communication Commission on October 8, 2021. In addition to providing public information such as the Bank's
interest rate and exchange rate, the Bank also provides a number of service functions such as
agreed/non-agreed money transfer in Taiwan dollars, transaction query, online banking password change, andfriendly interbank money withdrawal fee discount application.

Telephone services

EnTie Bank provides 24-hour voice service channels, as well as telephone voice card activation and loss
reporting services.

2021

Number of Internet Banking Users
with Physical and Mental Disabilities

2020

86

310
39

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

2021

Financial Services for Foreigners and New Residents

Financial Service Usability

EnTie Bank is committed to creating a friendly and bilingual financial service environment for foreign
customers. Both our physical and digital channels provide services and signs in English, and evenprovide multilingual versions for key precautions to ensure that foreigners and new residents canclearly understand their own rights and interests.

The financial service usability refers to the full use of financial services by financial consumers to
improve the frequency and efficiency of their use of banking services, insurance products and digitalfinance. In terms of usability, EnTie Bank provides convenient, diverse and low-cost financial services,
especially for the economically disadvantaged, start-ups and small enterprises, the elderly populationand young small-capital customers under the impact of the pandemic.

Bilingualfinancial service
environment

In order to improve the friendly bilingual financial service environment, bilingual signs are set at the businesscounter, service desk, barrier free service counter, automatic service equipment, passbook recording machine
and number retrieval machine.

Friendly Zone for
Card Applications
by Foreigners

In order to provide a more friendly credit card application environment for foreigners in Taiwan, the Bank has set
up on its official website a "Friendly Zone for Card Applications by Foreigners", which provides instructions on
matters including application requirements, loss handling, revolving credit rate range and various charges.

English version
for Internet
banking

EnTie Bank provides the English version of Internet banking service, which has the advantages of synchronous
updating of both the Chinese and English versions, screens in both Chinese and English, and consistency ofoperation interfaces to enable our digital financial services to follow the world trend.

Notes on multilingual
account transactions

Financial Services for the Economically Disadvantaged
EnTie Bank provides financial assistance measures with priority given to customers suffering losses
from natural or man-made disasters, and fully complies and assists the affected people in rebuilding
their homes when the government or the competent authorities of various special loans launch thepolicy of loan repayment extension or low interest loans, and provides assistance required by thesociety from the perspective of the Bank's core business. In addition, the COVID-19 pandemic
continues affecting people's economic activities and debt repayment ability since 2020. In the face ofthe severe economic impact on customers, EnTie Bank also provides relevant measures to assist
customers in debt settlement and support customers to live through the impact of the pandemic.

In order to allow new residents to clearly understand the notes on account transactions when opening a deposit
account, EnTie Bank provides a multi-language version of notes on account transactions for new residents.
Customers affectedby the pandemic

Customers affectedby natural disasters◎ EnTie Bank provided a debt coordination mechanism for those with repayment difficulties.
On the credit card balance, accounts payable and personal loan principal or interest,
customers could apply for a deferral or extension of 3 to 6 months, and the penalty andrevolving interest would be waived during the period. In addition to deferred principal
payment during the grace period, the customer might postpone the loan due date according
to the number of grace periods, and the acceptance period of the coordination mechanism
was from February 2020 to the end of June 2023. Funds were allocated to a total of 829
cases in 2021.
◎ EnTie Bank assisted in setting up labor relief loans and providing loan relief measures. At
the same time, it optimized the operation process, made a quick review and decision, andhelped workers obtain the capital required at the first time. Funds were allocated to a total of
521 cases in 2021.
◎ Homeowners whose homes have been damaged by natural disasters such as typhoons,heavy rains and earthquakes may apply for relief measures such as delaying the paymentof the mortgage principal or extending the repayment period on a case by case basis to help
reduce the repayment pressure of the affected households.

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2021

Small and Start-up ¹Financial Services

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

Implementation status of ²loans to low-income households

In order to comply with the government's promotion of the "Project for Enhanced Lending to Small andMedium Enterprise by Domestic Banks", EnTie Bank has implemented the "Small Enterprise andStart-up Enterprise Development Lending" since 2019 to help small enterprises and start-ups take rootin Taiwan in order to obtain sufficient financing and capital, expand their business capacity, operation
scale and market, while promoting the country's overall social and economic prosperity, and improve
the innovation level and industrial competitiveness of domestic enterprises. For inclusive finance casesof this type under corporate finance credit extension, the Bank evaluates them in accordance with therelevant credit extension provisions and have them submitted to the relevant approval level for review
in accordance with the corporate finance credit extension authorization criteria. In 2020, there were 138
such loan recipients with a loan balance of NT$23.43 billion. In 2021, there were 135 such loan
recipients, 231 cases with a loan balance of NT$25.2 billion.
In addition, as the turnover of many small and start-up enterprises declined due to the impact of the
COVID-19 pandemic in 2020, EnTie Bank specially provided relief loans for the operation ofsmall-scale business owners of this type to help business owners maintain normal operations. The
Bank provided relief loans to 34 business owners in 2020, and to 6 business owners in 2021.

Number of housing loan
households

48

Loan balance (NT$)$182,679,420

Number of housing loan
households

29

Loan balance (NT$)$133,173,217²Definition of low-income household: the average monthly income is lower than the basic wage

Implementation status of loans to promote the development of small enterprises and start-ups

Number of loan recipients
Loan balance (NT$)$23,430,758,277

Number of loan recipients
Loan balance (NT$)

138

135

$25,197,046,542¹ EnTie Bank defines “small and start-up enterprises" as small and medium-sized enterprises that meet any of the following conditions: (1) theenterprise has been established for less than 5 years; (2) the number of employees is less than 20; (3) the capital is less than NT $5 million;(4) the annual revenue is less than NT$10 million.

41

2021

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

Protection Products for the Silver-haired

Convenience products for petty bourgeoisie

The aging of Taiwan's population has increased significantly in recent years, and the Council for
Economic Planning and Development estimates that the proportion of Taiwan's elderly population will
rank second in the world in 2060. With the trends of fewer children, aging and high dependency ratio,
it is necessary for the elderly population to plan their retirement life and derived economic and medical
problems in advance. EnTie Bank actively promotes products in response to the aging of the society.
The official website has set up an "Insurance zone in response to the aging society" to publicize
relevant knowledge, help people understand the financial products for social care and nursing of theaging society, provide funds for the elderly, and improve retirement life security.

For the petty bourgeois customers, EnTie Bank launched the "e-Finger Benefit" NT$ fixed deposit projectthrough the online banking channel, and especially reduced the minimum deposit amount from NT$1
million to NT$500,000 to provide customers with more friendly participation conditions, and help young
petty bourgeois who are saving money for wealth management to accumulate deposits more effectively.
In 2021, it attracted 191 petty bourgeois customers to participate, with a contract amount of NT$156
million, accounting for 23.84% of the project.

Provide the silver haired population with a long-term andstable income for daily living expenses.
• The effective insurance contract amount is about
NT$3.601 billion.
• The number of insurance policies is about 3,113.
• The number of customers is about 2,458.

Combining the two functions of life insurance protection andsurvival benefit payment; in addition to protecting family life,
the stable survival benefit payment can maintain daily needs.
• The effective insurance contract amount is about
NT$16.244 billion.
• The number of insurance policies is about 12,498.
• The number of customers is about 9,302.

Medical expenses are increasing day by day, and lifetime
medical insurance is the most widely used tool to transfer
medical risks and provide medical protection for a lifetime.

Long-term care insurance relieves the pressure on
caregivers. In addition to the government's long-term carepolicy, early preparation via long-term care insurance canmeet the need of long-term care protection.

• The effective insurance contract amount is about
NT$52.31 million.
• The number of insurance policies is about 306.
• The number of customers is about 273.

• The effective insurance contract amount is about
NT$73.37 million.
• The number of insurance policies is about 373.
• The number of customers is about 330.

Cancer has always been number one among the top ten causesof death, and a disease that is not covered by health insurance.
Cancer insurance provides a sum of money for cancer
treatment and helps reduce the pressure on family members.
•The effective insurance contract amount is about
NT$79.13 million.
• The number of insurance policies is about 561.
• The number of customers is about 444.

EnTie Bank is one of the 14 banks in the country that offer"commercial housing pension" business, and it is the first in
the industry to lower the application threshold to 55 years
old. This product, integrating reverse mortgage loan andannuity insurance, not only helps the elderly to revitalize
their assets and plan their retirement life, but also maintains
a stable monthly income source through the characteristics
of annuities of "living longer and getting paid longer".

In terms of non-discretionary money trust investment with small amounts, 6,330 customers participatedin the Regular Saving Plan (RSP) in 2021, an increase of 4.8% from the previous year, and theaccumulated amount debited reached NT$2.134 billion. In addition, in order to enable petty bourgeois to
subscribe to overseas bonds un the secondary market for asset allocation, Entie Bank launched 77
tranches of bonds with small denominations (ZAR, AUD, USD 10,000) for non-professional investors.
In 2021, 653 customers participated in small-denomination bond investment, reaching NT$805 million in
the whole year, accounting for 47.8% of the total overseas bond sales. This allows the general public to
be fully benefited from the fixed income products with stable interest returns.

Financial Service Quality
The quality of financial services focuses on helping all financial consumers obtain necessary financial
information and improving their overall financial literacy through financial education and publicity andpopularization of financial knowledge. With this concept as the core, EnTie Bank has developed
financial literacy education activities and conducted fraud prevention promotion through different
channels.

Financial Literacy Education
EnTie Bank adopts the online briefing method in compliance with the pandemic prevention measuresto actively promote the correct knowledge of healthy financial management, and invited financiallydisadvantaged groups to participate in the online briefing. The topics included investment outlook,
LOHAS retirement and taxation, asset planning, the lazy investment method in the post-pandemic era,
low-interest investment techniques and insurance policy tax planning, mainly focusing on providing
financial knowledge and solutions for retirement and inheritance planning for senior customers. In thesecond half of 2021, the Bank held 31 online briefing sessions with a total of 1,231 participants. EnTie
Bank hopes to provide customers with correct financial management concepts through financial
management briefings, so that customers can understand diversified financial products, suitablefinancial management channels and investment trends.

42

2021

In addition, in order to promote financial knowledge, the Bank has a total of six employees in thenorthern, central and southern regions serving as the seed lecturers of the FSC's "Going to Campuses
and Communities for Financial Knowledge Promotion Activities", in order to comply with the competentauthorities’ promotion of strengthening people's financial knowledge and ability to prevent fraud which
is mainly aimed at elementary and middle school children. However, the implementation was
suspended in 2021 due to the pandemic, and the Bank will continue supporting relevant promotional
activities in the future.
Achievements of Financial Literacy Education Activities

31

sessions

Online wealth management
briefing sessions.

1,231
peoples
Fraud Prevention Advocacy
In order to improve the quality of financial services and ensure that customers have sufficient protection
and knowledge, EnTie Bank has established a consumer protection area on its official website toremind customers to prevent financial fraud, and implemented the over-the-counter transaction carequestions and ATM transaction operation reminders. In each of the Bank’s business premises, thecounter staff carefully observe and report unreasonable transactions immediately. At the same time, a
police-community connection service is set up to facilitate the elimination of dangerous accidents, gain
the trust of customers, and contribute to the society.
Number of Fraud Cases Blocked by EnTie Bank
2019

2020

2021

Number of people commended for successful blocking of scams

3

6

11

Number of people rewarded for voluntarily reporting suspected
money laundering cases

0

3

15

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

Examples of EnTie Bank’s commendations for successful blocking of scams

When the Hsin Chuang Branch was handling a customer’s
passbook-free deposit transaction, the customer could not
clearly explain the purpose of the transaction and repeatedwith vague explanations. The bank staff then explained tothe customer that this was a common fraud case, assisted
the customer in cancelling the transaction and reporting to
the police, and successfully stopped the fraud.

When handling the domestic remittance case of an elderly
customer, the Chien Kuo Branch found that the customer was
not familiar with the payee but only contacted him throughcommunication software, so it immediately asked the police
to help explain to the customer that this was a common fraudcase and successfully stopped the fraud.

When handling the domestic remittance of an elderly
customer, the Tung Hua Branch asked about the purposeof remittance, but the customer had different explanations
for the purpose and frequently received phone calls during
the transaction process; therefore, the Branch judged it to
be a fraud case and immediately assisted in contacting
family members and reporting the case to the police, andsuccessfully stopped the fraud.

When the Hsin Yi Branch was handling the case of foreign
remittance, the customer said the purpose of theremittance was to pay the lawyer's fee on behalf of afriend known on the Internet. The Branch judged it to be a
fraud case, and immediately asked the police to come andhelp explain to the customer, and successfully stopped
the fraud.

When the Chung Li Branch was handling the over-the-countercash withdrawal of an elderly customer, the customer said thatthe purpose was for his son's car purchase. During thetransaction process, the Branch found that the telephone
conversation content between the customer and the receiving
party was unreasonable, and his son was not in Taiwan, andtherefore judged it to be a fraud case. The Branch then
immediately asked the police to help explain to the customer andsuccessfully stopped the fraud.

When the Fong Yuan Branch was handling the domestic
remittance of an elderly customer, the customer received aphone call to urge him during the transaction process. The
staff felt the situation abnormal and contacted the customer’sfamily, and confirmed it to be a fraud case. The staff
immediately assisted in reporting the case to the police andsuccessfully stopped the fraud.

When the Tai Nan Branch was handling a customer's domestic
remittance transaction, the customer said that it was the
prepayment of goods purchased through Facebook; the Branch
took the initiative to inquire due to the exception of the case andfound that the company had closed down, and judged it to be a
fraud case and immediately asked the police to come to help
explain to the customer that this was a common fraud case andsuccessfully stopped the fraud.

When the Fong Shan Branch was handling the over-the-countercash withdrawal of an elderly customer, the customer said thatthe purpose was for fund repayment to his son. However, theBranch found in the process that the customer looked abnormal,
and asked him to provide his son's contact number, but thecustomer refused. The Branch then judged it to be a fraud case,and immediately asked the police to help explain to the customer
and successfully stopped the fraud.

43

2021

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

Digital FinanceTechnological innovation brings more possibilities to financial services and injects more impetus into thebanking business. Based on pragmatic cost-benefit assessment and customer demand review, EnTie
Bank has planned a digital financial blueprint and adopted a two-way strategy of transformation andinnovation. On the one hand, the Bank optimized the number of physical channels, strengthened thedepth of customer service and expanded the breadth of product distribution; on the other hand, the Bank
actively built and maintained the functions and operations of various digital financial platforms to provide
customers with instant, convenient, stable and accessible new financial services through the integrationand operation of online to offline (O2O) virtual and real channels, so as to gradually achieve the goal ofbuilding an ecosystem of EnTie Bank’s digital financial service.
Since Bank 3.0, EnTie Bank has been paying attention to and developing fintech related businesses. In
recent years, EnTie Bank has successfully launched digital platforms such as the new version of Internet
banking/mobile banking, the new version of official website, online application for digital deposits, online
application for credit loans, online application for credit cards, and online counters. The digitaltransformation strategy of EnTie Bank will establish a new type of digital business cooperation mode,
comply with the diversified development trend of financial services, implement accurate marketing basedon social media management and customer digital footprint, and expand the capacity of digital customer
guidance, in order to achieve the goal of digital transformation and improve the competitiveness of digitalfinance of the Bank.

Collaboration
Intergration and Connection

OnlineApplication

Electronic
Payment

Community
Media

Branches

Online Counteron Official
WebsiteDigital WealthManagement

Credit Card

ATM

Mobil
Banking

VIP Customers

DigitalCustomers
Customer
Service

Internet
Banking
DigitalInsurance

Data Driven
Decision Making

DigitalFinancing

44

2021

Digital Financial Highlight Services

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

EnTie Bank's Digital Financial Products and Services Over the Years

EnTie Bank provides customers with more diversified digital products every year in order to improve thequality of financial services and enhance market competitiveness. In 2021, the Bank focused on
optimizing Internet banking/mobile banking and added new-scenario financial services (JKOPAY Account
Link) to provide customers with a more convenient and safer digital financial service experience.

◎ Mobile Banking app 1.0 was launched to provide functions of account query,payment transfer and wealth Management order placement.
◎ A digital financial environment 3.0 was created to provide online businesses suchas KYC.

◎ The application field of mobile payment was expanded to cooperate with JKOPAY
and Taiwan Taxi.

New version of Internet banking/mobile banking
The new version of Internet banking/mobile banking was officially launched in March
2021. It is redesigned with the intuitive trading interface which integrates the trading
functions of Internet banking/mobile banking and user interface, and supports multiple
mobile devices through RWD which allows customers to trade in various scenarios
and any time and space; it is also supplemented by the latest biological and graphic
recognition and international alliance certified FIDO technology to allow customers to
log into mobile banking in a simpler, faster and safer way.

◎ The Bank participated in international mobile payment and added the medical
mobile payment app and Google pay.

◎ The TWID function was added to Internet banking for online certification oflarge-amount foreign exchange.
◎ The Bank cooperated with AlphaLoan, a credit price comparison platform, anduses big data to predict online loan approval conditions.

JKOPAY Account Link
JKOPAY Account Link was officially launched in December 2021. Through thecooperation with JKOPAY, the value and functionality of the Bank's deposit accounts
are improved, and the number of transactions of young customers and AUM are
increased.

◎ Mobile bank app 2.0 was launched with the addition of non-agreed transfer,
insurance inventory query and biometric function.
◎ The FISC online identity verification mechanism was introduced to optimize theonline credit loan application process.

Online counter
EnTie Bank provides 24-hour online counters on its official website for deposit, loan,credit card application and Internet banking services. It breaks through time andgeographical restrictions, provides fast, efficient and convenient application channels,
reduces physical contact under the pandemic, and meets customer needs andmaintains a high-quality service experience.

2020
2021

◎ Digital financial platform 3.0◎ Credit card online counter◎ The new version of Internet banking/mobile banking was launched, which is redesigned withintuitive trading interface, integrating the trading functions and user interfaces of Internet
banking and mobile banking.
◎ The JKOPAY Account Link function was online, which improves the value and functionality of theBank's deposit accounts.

45

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

2021

Digital Financial Service Achievements
EnTie Bank regularly reviews the effectiveness of digital financial services every year, and grasps the use and demand trends of customers through the number of users, transaction volume and transaction rate, in order
to serve as a reference for the development and optimization of financial products in the future.
In 2021, the number of Internet/mobile banking customers increased by 6.9% over the previous year, mainly due to the impact of COVID-19 which greatly increased the willingness of customers to use digital platforms,
and thus led to a significant increase in the transaction volume of Internet/mobile banking by 7.5%. However, due to the launch of the new version of Internet/mobile banking in March 2021, customers need time to adapt
to the newly designed operation interface, so the transaction rate of Internet/mobile banking was 6% lower than that of the previous year.
On the use of telephone banking, as the Bank is committed to the promotion of digital services, the number of customers applying for telephone banking continued to grow by 2.8%, but the number of users and the growthrate of account transactions continued to decline by 5.4% and 1.9% respectively, mainly due to the impact of COVID-19, which reduced the opportunities for customers to go abroad, resulting in a reduction in the demandof customers for foreign exchange transactions and credit card limit adjustments, and thus a simultaneous reduction in the overall number of telephone transactors and transaction volume.
On the other hand, as the willingness of customers' OTC transactions at branches decreased due to the pandemic, the Bank put efforts to actively promote the telephone trust order placement service, and the telephonebanking transaction rate increased by 2.7% as a result.
E-services Customers Growth Rate

E- transaction Growth Rate

Internet/mobile banking
customer number

Electronic consolidated
statement customer

2020

2020

8.4%

2019

8.9%

2018

9.8%

2017

15.9%

2021

6.9%

2019
2018

Electronic accounttransaction volume³
2020

17.1%
24.0%
29.3%

2021

11.9%

Telephone banking
customer number

Credit card e-statement
customer number

2020

3.3%

2020

2.1%

2019

3.7%

2019

11.7%

2018

1.3%

2018

10.8%

2017

5.7%

2.8%

2017 -

20.5%
10.1%

2018 -6.3%

2021

6.6%

2020

-2.2%

2019

-3.4%

2018

-8.0%

2021

-1.9%

Internet/mobile banking
account transaction volume⁴

2017 -

2021

2019

Telephone banking accounttransaction volume⁵

2020

23.7%

2019

12.3%

2018

8.7%

2021

7.5%

2021

8.9%

³ Electronic account transaction volume: the total account transaction volume of Internet banking, mobile banking and telephone banking.
⁴ Internet/mobile banking account transaction volume: including fund trust, foreign exchange and other account transactions.
⁵ Telephone banking account transaction volume: refers to fund trust (including event changes), foreign exchange and other account transactions(including credit card and credit transactions, basic information changes, loss reporting and marketing notes).

46

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

2021

Customer Service and Protection
EnTie Bank is committed to continuously improving the quality of customer service, while taking into
account the four aspects of customer relationship management, grievance mechanism, rights andinterests protection and privacy protection, in order to provide customers with diversified communication
channels, collect, process, track and analyze customer needs, and provide more complete customer
feedback and problem-solving solutions to improve customer experience and deepen relations. EnTie
Bank expects to adhere to the core brand management philosophy of "speed, professionalism and trust"to quickly respond to customer needs and expectations, and provide customers with high-value services.

In 2021, a total of 240 customer opinions were collected; according to the nature of business, 170
opinions were for wealth management business and 70 for consumer finance business; according to
the type of customer opinions, 97 were for business descriptions and verification and 85 forprofessional knowledge/workflow, accounting for 76% of the total number of opinions.

Customer Relationship Management
EnTie Bank values the relationship with customers. In recent years, it has successively developed theservices of mobile banking and VIP hotline to provide high-quality and instant services. In 2020, theBank also launched a number of customer services, including online application for digital deposit
accounts, online credit loan guarantee, online application for credit cards and other digital services. The
Bank has also planned to launch the "Line customer online service" function to digitize customers' lives
in order to enjoy more instant and convenient quality services.

ServiceanddealingIndustrial
knowledge

Operationflow

Customer Opinion Collection Platform
Voice of customer (VOC) is a platform used by EnTie Bank to listen to customer voices. It collects
information such as customer calls to the Customer Service Center, the information in the "Contact Us"
section of the Bank's official website, customer satisfaction survey and letters from competentauthorities, in order to find potential problems and then look for countermeasures for improvement. The
Bank tries its best to meet the different needs of customers and makes continuous improvement tomake customers gradually agree with the Bank's operation mode. In recent years, the suggestions to
the Bank have been decreasing, which shows that the establishment of this platform has achieved clear
and effective results.

Business
description

SystemdesignProblems found via VOC

Sharing
andcontinuous
training

Cross-departme
nt discussion
for solving theroot causes ofproblems

Follow up/improvement

Customers trust
and relationshipdeepening

Reply and report the processing
progress of the Bank

Number of cases collected from the customer platform of EnTie Bank

465

336

2016

2017

321

225

271

240

2018

2019

2020

2021

47

2021

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

Number of cases collected from the customer platform

2021

Total

240
cases

92

15

88

41

4

cases

cases

cases

cases

cases

Customer service
call center“Contact Us” of
EnTie Bank’s official
websiteCustomer satisfaction
Competent authorities
surveys(including appeals/petitions
to the FSC and the

Others (fromfront-line units,
mass media, etc.)

Customer Opinion Collection Platform Successful improvement cases and customer praise cases

CustomerMs. ChenCustomer Ms. Chen called the Customer Service Center of the
Bank and said that the current fund statement had no grid line todistinguish the data, which made it very inconvenient to checkthe data of multiple funds. It was suggested that grid lines orfields could be added to the page to distinguish the data by color
for the convenience of customers. In view of the problems
reported by the customer in this case, the Bank has optimized
the layout of the current fund statement to facilitate customers'
reading.

Customer
Ms. Tsai

Customer Ms. Tsai and her daughter went to a branch one day
to report the loss of the deposit seal and to change personal
data. She opened a securities account at the branch many
years ago, but did not know which securities firm she tradedwith at that time. The branch staff took the initiative to help thecustomer query the securities firm’s information and provided
the contact information to the customer to enable her to deal
with subsequent stock related matters. During the process, thestaff of the branch were patient and enthusiastic, and thecustomer even expressed her willingness to open an accountwith EnTie Bank. The customer was very satisfied with theoverall service of the staff of the branch, and asked the Bank topraise them.

Customer
Mr. LiOne day, customer Mr. Li called the Customer Service Center of the Bank
to inquire about the account balance and conduct a FX transaction withhis foreign currency account, but the customer could not use thetelephone banking transaction because he had not entered anagreement in advance. The customer service staff then provided analternative plan by guiding the customer to the Internet banking operation.
At that time, the customer did not understand the reason, and thecustomer service staff patiently explained to the customer and informed
him of the restrictions on FX transactions with the foreign currency account.
The customer thought that the customer service staff was very
professional, and asked whether the call could be transferred to thesupervisor online to praise the customer service staff's service. The
supervisor of the Customer Service Center thanked the customer online
for his support to the Bank and the affirmation of the service of thecustomer service staff. The customer said that some companies would
select excellent employees, but he didn't know whether EnTie Bank hadsuch a mechanism and simply wanted to reflect to the customer service
supervisor that the Customer Service Center had such good employees
to make him feel encouraged.

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Customer Satisfaction Level
Customer satisfaction survey is an important channel for EnTie Bank to understand customers.
The Bank conducts regular surveys to customers trading over the counter, customers placing
trust orders and consumer finance credit customers every month. In 2021, the Bank surveyed
2,550 customers trading over the counter and placing trust orders, and 4,223 consumer financecredit customers. The wealth management service satisfaction level (five point system)
reached 4.79 points, an increase of 0.01 points over the previous year; consumer financial
service satisfaction level (percentage system) increased by 1% over the previous year, and
98% of customers gave positive comments on the Bank's overall loan process.
The performance statistics of the Customer Service Center is also one of the indicators tomeasure customer satisfaction. In 2021, EnTie Bank received a total of 208,317 service calls,
with a service level of 86.1%. Compared with the previous year, the service calls decreased by
8% and the service level increased by 6%. The overall service level gradually improved andstabilized in the second half of the year (from August 2021) due to the gradual slowdown of
COVID-19.
The decline in the number of service calls in the whole year is due to the continuous impact of
COVID-19 in 2021, the reduction of customer consumption and overseas demand, and the 13%
decrease in the number of service calls concerning the credit card business in the whole year
compared with 2020. Customer demand for repayment extensions also decreased; the annual
service calls of credit business decreased by 19% compared with 2020, but the annual service
calls of wealth management business increased by 6% compared with the previous year due tothe warm trading in the investment market and the increase in trust transactions, thus resulting
in an increase in the number of service calls.

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

Customer Satisfaction Survey Types

OTC trading
customers

The survey is conducted on the service speed of the branch's new account opening ordeposit/remittance, professionalism and the customer’s trust in the Bank.

Trust orderplacing
customers

The survey is conducted on the wealth management specialist’s service attitude,
enthusiasm, product expertise and service speed, and the customer’s trust in the Bank.

Consumerfinance credit
customers

The survey is conducted on the loan personnel’s service attitude, product expertise andservice speed, and the customer’s support of the Bank.

Annual Customer Satisfaction Survey Level

Wealth management service
satisfaction level (five point system)

Consumer financial service satisfactionlevel (percentage system)

4.79

2021

98.0%

4.78

2020

97.0%

4.67

2019

97.0%

4.72

2018

97.0%

4.70

2017

97.1%

4.66

2016

99.8%

49

2021

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

Customer Complaint Mechanism

Protection of Customers' Rights, Interests and Privacy

In order to protect customers' rights and interests and avoid unnecessary misunderstandings incustomers’ use of the Bank’s products, the Bank provides channels for customer complaints andconsumer disputes, and maintains smooth two-way communication. EnTie Bank provides multiple
customer complaint channels, such as the customer complaint hotline, 0800 toll free customer service
hotline, official website contact page, etc. Customers can also send their complaints or problems to the
Bank through branches or the FSC.

EnTie Bank values the rights and interests of each customer, and properly handles consumer complaints
with the principle of fair hospitality and a reasonable and honest attitude. The Bank also strictly follows
internal processes and external norms in the information labeling and marketing of financial products andservices. In case of any change in the rights and interests of customers, the Bank will also make a
pre-announcement on its website and business hall for public review in accordance with the regulations of
the competent authority. EnTie Bank also stipulates dispute handling and complaint channels on the Bank's
website and relevant contracts; for outsourcing cases, the Bank ensures that it signs confidentiality
agreements with vendors on customer information to protect the rights and interests of customers.

After accepting a customer demand case, the bank generally reports the processing progress to thecustomer within one working day, and completes the reply to the customer and case processing withinseven working days. The Bank also tracks and summarizes the handling of customer complaints at theend of each month, regularly analyzes the causes and types of consumption disputes, and provides thetypes of frequently occurring consumption disputes to the responsible unit of each business as areference for business review.
In 2021, there were a total of 95 complaints, and the main categories were business explanation andverification (61%), credit condition negotiation (21%), service attitude/professionalism (10%), andbusiness negligence (8%). At present, all of them have been processed and closed.
Operation flow of customer complaint cases
Case filingCase
acceptanceAcceptance unit
Acceptance date

95
2021

Processing
by undertaker

Approval byunit supervisor

Owner
Case filing within one working day(customer complaint system registration)

Case closed

Customer Service Center
Case closed within seven working daysor 30 days at the latest

Customercomplaint
hotlineCustomer
serviceline

Official
websitecontactpage

In order to establish a corporate culture of treating customer fairly, EnTie Bank, in accordance with the"Principle for Financial Service Industries to Treat Clients Fairly" promulgated by the FSC, passed a
resolution at the board meeting to formulate the "Criteria for Treating Customers Fairly" to enhance thebank employees' awareness of financial consumer protection and compliance with regulations. At the
beginning of 2022, the Bank amended the "Criteria for Treating Customers Fairly" and set up a Treating
Customers Fairly Committee to regularly review and improve the operation and implementation of the fairtreating customers principle; in addition, the Bank set up a cross-departmental team which meets andcommunicates regularly on cooperation matters for the implementation of the fair treating customers
principle, so as to improve the effectiveness of the Bank’s implementation of the fair treating customers
principle. EnTie Bank’s organization for treating customers principle promotion is as follows:

111
Treating Customers
Fairly Committee

2020
77
88
2018

Customer complaint method

Treating Customers Fairly Principle

173

2019
Treating
Customers Fairly
Execution Team

136
2017

2016
Legal andCompliance(02)2579-3117

0800-005-999(02)412-8077

https://www.entiebank.com.tw/
entie/contact

Annual Number ofCustomer Complaint
Cases

RetailOperation
Management
Corporate
Business
Management

CustomerManagement
Business
Supporting

Risk
Management
Business
Planning

50

2021

The Bank also formulated the "Guidelines for the Implementation of Treating Customers Fairly, EnTie
Bank", which clearly stipulates the norms for the implementation and supervision of fair treating
customers. See the table below for the specific implementation in 2021.
Implementation of Treating Customers Fairly Principle

Refinement andimprovement
plan

Self
assessment

As it has been more than 5 years since the competent authority's promotion of the fair hospitality principle in 2016, it isnecessary to review and improve the implementation of the fair treating customers principle of the Bank in order toenhance the corporate image of the Bank and meet the expectations of the competent authority. Therefore, the Bank
formulated the "Refinement and Improvement Plan of the Treating Customers Farily Principle in the Second Half of2021" with the following key points:
A.
In order to effectively solve major customer complaints and uniformly promote and deal with issues related to thefair treating customers principle, it is proposed to establish a Treating Customers Fairly Committee.
B.
In order to care for and pay attention to the customers of the Bank, it is proposed to select and praise polite andhigh-quality service personnel of business units, and encourage the establishment of welcoming ambassadors.
C.
All business units (branches or regions) and business management units should set up dedicated personnel topromote the fair treating customers principle.
D.
In line with the policies of the competent authority, the Bank formulated the relevant procedures of friendly
financial services, and strengthened the quality of services to vulnerable groups such as the elderly and thephysically and mentally disabled.

On legal compliance, EnTie Bank regularly conducts self-assessment on the implementation of fair treating customers,
and adds nine fair treating customers principles to review the implementation of relevant compliance matters.

In order to make our employees fully understand the rights and obligations in financial consumption relations and assist
customers to establish a correct concept of financial consumption, the Bank conducts at least 3 hours of treating
customers fairly e-learning for bank staff every year, so as to improve their awareness of consumer protection,compliance with the Financial Consumer Protection Act and other relevant regulations, and effectively prevent financial
consumption disputes. The handling situation is as follows:
Education
training

1st special class in 2021 for 1.5 hours, training period from February 26 to March 22, 2021, and 1,459 people completed
the training; 2nd special class in 2021 for 0.8 hour, training period from April 28 to May 20, 2021, and 1,481 people
completed the training; 3rd special class in 2021 for one hour, training period from July 26 to August 13, 2021, and 1,465
people completed the training.
In addition, supplementary training was carried out from November 22 to December 31, 2021, and 1 person from the 1st
special class, 2 people from the 2nd special class and 2 people from the 3rd special class completed the training.
All trainees that needed training completed the statutory hours required.

Reviews
according tointernal
regulations
and contracts

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

On a regular basis and in accordance with the "Specific Content of Compliance With the Fair Treating Customers
Principle (Norms of the Industrial Related Laws)" of each industry, and the "Matters to Be Noted and Strengthened in the
Implementation of the Fair Treating Customers Principle by Financial Institutions" updated by the FSC, EnTie Bank has
made seven fair hospitality principle checklists for the Bank's deposit, loan, insurance, credit card, trust, wealthmanagement and other businesses according to each business type, for the responsible units to check whether thecontents of the customer contracts and the Bank's internal rules comply with the principle and spirit of fair treating
customers. In 2021, the Bank reviewed its customer agreements (forms). 21 departments and offices, including the
Retail Operation Management Department, totally reviewed 297 customer agreements (forms) in accordance with thelaws and regulations and the seven checklists independently prepared by the Legal and Compliance Department
according to business types, and the review results were in line with the aforementioned norms.

Information Labeling and Marketing
EnTie Bank attaches importance to the rights and interests of customers. In order to faithfully present thecharacteristics of products, it has formulated clear specifications for the design, production and sales
methods of product marketing, advertising and description. In terms of information labeling, the Bank
strives to clearly and precisely convey material information and investment risks to customers before thesale of products. In addition, the "Product Specification" prepared according to the relevant external
specifications of each business or product is submitted for the review and countersignature of the Legaland Compliance Department, and then the relevant conditions and risks of the product are disclosed tocustomers. The Auditing Department of the Bank will also conduct internal audit every year to ensure theimplementation of relevant operating regulations.
EnTie Bank did not violate the laws or regulations related to the information and labeling of products orservices in 2021.
In terms of marketing, in order to avoid violating laws or misleading consumers, EnTie Bank requires
business units to design and produce advertisements according to the internal regulations of marketing
and advertising formulated by the Bank first, then self-check the contents of the advertisements according
to the "Principles for the Review of Marketing Documents", and finally print or publish them with the review
and countersignature of the Legal and Compliance Department and the approval of Head Office Chief
Compliance Officer. EnTie Bank did not violate the regulations and/or voluntary regulations on marketingand communication (including advertising, promotion and sponsorship) in 2021.

51

2021

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

Customer Privacy Protection
EnTie Bank attaches importance to customer privacy and protects customers' rights and interests. The Bank established the Personal Data Protection Management Committee as the highest governance unit for personal
data protection, and also formulated the "Personal Data Protection Management Policy, EnTie Bank" as a guide for the protection of customers' personal privacy. The President serves as the convener of the Personal
Data Protection Management Committee to regularly promote, supervise, review and improve the operation and implementation of the maintenance measures of personal data file security. Under its jurisdiction, a
Personal Data Protection Management Execution Team is set up to be responsible for the planning, formulation, implementation and revision of the procedures related to the personal data security maintenance plan.
The team leader is the head of the Legal and Compliance Department. The Legal and Compliance Department is responsible for the administrative work of the team, and the team members are the division directors,
the top supervisor of each system, and the personnel selected by relevant management departments.
As for the commitment to customer privacy, EnTie Bank published the statement of website privacy protection on its official website, and also specified the scope and method of personal data collection, processing andutilization in the customer contract. At the time of signing the contract, the salesperson also complies with the regulations of the competent authority and once again informs the customer of personal data protection.
EnTie Bank did not have any complaints of confirmed infringement of customer privacy or loss of customer data in 2021. See the following table for the implementation of relevant personal data protection work:
Achievement of Customer Personal Data Protection Implementation
Structure of Personal Data Protection Management Committee

Education
training

Personal Data
Protection Management
Committee

Personal Data
Protection Management
Execution Team

Corporate
Banking andMarkets Group

Chief Legal &Compliance
Officer Group

Chief Financial
Officer Group
Retail Banking
Group

Auditung
Department

Chief Credit
Officer Group

Chief Operation
Officer Group
Legal &
ComplianceDepartment

Secretariat of
the Board
Department

Risk
Management
Department

Information
Services
Department

Personal Data
Inventory
TakingHuman
Resources
Department

CPA's
personal dataprotection
assurance
audit◎ Handling of personal data protection training of EnTie Bank in 2021:“Advocacy of Employees’ Obligation of Confidentiality” and “Advocacy of Personal Data Protection Act” 1st special class in
2021 for one hour, training period from June 23 to July 16, 2021, and 1,485 people completed the training; in addition,
supplementary training was carried out from November 22 to December 31, 2021, and two people completed the training. Alltrainees that needed training completedthe training.
◎ EnTie Bank originally planned to hold a lecture on personal data protection tools for the personal data protection specialist ofeach business unit system in June 2021. However, considering the severe domestic pandemic situation and in compliance withthe relevant pandemic prevention measures, it was not suitable for multiple people to gather. Therefore, it was replaced with
an electronic file description of personal data inventory operations, or the employees could sign up for the online course of"Pre-service Training Course for Personal Data Protection Specialists" on the Bank's e-learning website in 2021, in order tostrengthen the ability of various systems and business units to conduct inventory and risk assessment of personal dataprotection.
◎ EnTie Bank prepared a set of Personal Data Protection Q&A (3rd Edition) and Starter Kit (4th Edition), and announced them atthe employee portal and in the inquiry area and personal data protection area in August 2020 for the review of employees of
the Bank.
◎ In order to comply with the organizational adjustment and master the collection, processing and utilization of personal dataof the Bank, the business unit systems of the Bank have completed various inventory taking and update operations of thepersonal data flow chart, business process inventory table and personal data analysis table according to the schedulearranged by the Personal Data Management Execution Team, so as to effectively implement the preservation andmanagement of personal data files under each business unit system.
◎ According to the results of the 2021 personal data inventory taking and personal data risk assessment, the Bank's current
personal data protection mechanism and protective measures are in line with legal requirements, the personal data risk isproperly controlled, and relevant operations and maintenance are in good order.
◎ EnTie Bank entrusted a CPA to carry out the special audit of personal data protection for the previous year in accordance withthe requirement of the FSC. After the audit in 2021, the CPA did not make any improvement suggestions, and already issued
a report together with the audit of the internal control system.

52

2021

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

Green Environment
In response to climate change, EnTie Bank pays attention to and responds to climate risks and opportunities.
We promote various sustainable financial products externally, implement energy conservation and carbon
reduction in our own operations internally, and jointly promote corporate social responsibility with suppliers.

Sustainable Finance P.54

Supplier Management P.59

Environmental Sustainability P.61

Task Force on Climate-related Financial Disclosures (TCFD) P.64

53

2021

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

Sustainable FinanceWith the upgrading of the government's "Green Finance Action Plan" to version 2.0, EnTie Bank's
corporate finance business, shouldering the responsibility of economic intermediary, has been
continuously and carefully selecting and expanding the selection of various green enterprises as the
Bank's credit extension objects to ensure that resources are used where they are beneficial to theeconomy, environment, and society. We continue to develop diversified credit extension objects,
including the green building syndication loan case with carbon absorption of more than 130 tons per year,
the telecom ESG syndication loan case, the carbon reduction electric bus bilateral loan case, the BOT
syndication loan case of Taiwan's largest water resource recovery system, and the self-loan case oflong-term care institutions with social responsibility.
In addition, in the green energy industry the credit extension has increased from the original offshore wind
power and solar photovoltaic cases to the sponsorship of fishery and electricity symbiosis syndicationloan cases. For breeding power plants using greenhouse technology, the Bank complies with the policy
to promote fishery and electricity demonstration projects, in order to provides the most substantial
support to enterprises which achieve the business direction of diversified land use. At the same time, theBank also participates in the syndication loan cases of small hydropower plants that can complement
intermittent electricity such as solar photovoltaic power and wind power, and continuously contributes to
ESG. In the future, the Bank will continue to pay attention to the information of the sustainability policy,
and look forward to moving towards a more sustainable and diverse society together.

Promotion and Implementation of the Concept of Sustainable Finance
EnTie Bank has always followed the five basic principles of security, liquidity, public welfare, profitability
and growth when handling the corporate finance credit business, and extend loans according to the fivereview principles of borrower, use of fund, repayment source, creditor's rights protection and credit
outlook. In recent years, in response to the promotion of the Equator Principle by the competent authority,
the Bank has added whether borrowers have fulfilled the standards of environmental protection, ethicalcorporate management and social responsibility to the evaluation elements on “Criteria for Credit
Business” when reviewing project financing cases; if a customer violates issues related the society,environment and ethical corporate management after a loan is granted, a loan amount reduction or
corresponding measures will be taken. The revised criteria above are extended to overseas andmainland regions, and the requirements above are added to the "Guidelines for Handling Credit Review
and Post Loan Management in Overseas and Mainland Regions".

In 2018, the Bank complied with the competent authority to promote the green finance policy, expanded
the application scope of the review principles from special financing cases to all corporate credit cases,
added environmental, social and governance evaluation fields to the credit report, and listed the evaluation
indicators in the three major aspects respectively. In the future, credit applications that seriously violatesocial, environmental and corporate governance standards will be considered to be declined.
In contrast, when evaluating the investment in green bonds in the process of securities investment, it willbe allowed to give green bonds better issuance conditions than ordinary bonds. With the joint efforts of
employees, the balance of green bond investment by the end of 2021 was NT$575 million, and theinvestment amount will increase in the future. In addition, EnTie Bank participates in the ESG scoringmechanisms of international financial information platforms (such as Bloomberg and Reuters) to include
ESG risks in the investment analysis, and cooperates with the Bank's TCFD to import special projects to
identify potential climate risk factors and discuss climate related investment opportunities, with a view tofulfilling the responsibilities of an institutional investor.
Screening Based on Negative Investment Listing:Basis for investment exclusion

Basis for investment exclusion◎ Enterprises punished by thecompetent authority forenvironmental pollution incidents◎ Enterprises prosecuted byprosecutors for environmental
pollution incidents◎ Hollowing out the company◎ Food safety issues◎ Insider trading◎ Bribery and corruption◎ Tax evasion

Basis for investment exclusion◎ Poor working environment, including slavery and child labor◎ Involvement in gender and racial discrimination◎ Involvement in occupational health and safety issues◎ Involvement in major labor disputes, strikes and vicious layoffs◎ Violation of the content and spirit of the International
Covenants on Human Rights

Optimizing Project Financing Ability and Cultivating Project Financing Talents
Through years of participation in syndication loan cases, EnTie Bank has cooperated with other banks to
exchange relevant knowledge, technology and experience. At present, the Bank has built a reputationand professional image in the field of green energy. After accumulating considerable experience, RM/PM
has gradually expanded the business to green credit in different industries. At the same time, in order tofurther cultivate green finance related professionals of the Bank, in addition to sharing various cases with
PM staff by the head of the Merchant Banking Department to pass down and internalize professional
abilities and knowledge, the Bank sends personnel to actively participate in the financial business training
course for solar photovoltaics and other related courses of Taiwan Academy of Banking and Finance.

54

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix2021

Sustainable Financial Products and Services
Cultural and Creative Industries
In response to the upgrading and transformation of domestic industries, EnTie Bank responded to thegovernment's "Financial Industry Supporting Creative Industry Project" and promoted the "six emerging
industries" (2009~2012), including cultural creativity, biotechnology, refine agriculture, green energy
industry, medical care and tourism. Considering that the creative industry has not only a strategic positionin the blueprint of Taiwan's economic development, but also the characteristics of promoting positivesocial development, EnTie Bank has specially set up a creative industry consultation window to help thecreative industry acquire funds.

Unit: NT$ billion

Promotion Results of Credit Balance of 5+2 Key New Industries

17%
GrowthRate

36.57

Taiwan's cultural and creative industries are divided into 15 industries, including pop music, culturalcontent industry, radio and television/film industry, creative life industry, digital content industry andpublishing industry. By the end of 2021, the credit balance of cultural and creative industries of EnTie
Bank accounted for about 6.9% of the total legal persons' credit balance of corporate banking, with agrowth rate of 116.4% from 2015, and the radio and television/film industry and the creative life industry
had the largest growth rate.

5+2 Key New Industries
In recent years, the government has made every effort to promote the 5+2 industrial innovation plan anddeveloped a new model of sustainable economy. The FSC has also launched the "Scheme to Reward
Domestic Banks to Handle Loans for Key New Industries", encouraging domestic banks to extend credit
to key new industries, so as to drive the overall economic development of the country. In 2019, thegovernment further launched version 2.0 of the "5+2 Industrial Innovation Plan" to introduce 5G, AI andother emerging technologies to strengthen the development of emerging industries and newtechnologies.
In response to the government policy, EnTie Bank actively handled credit services for 5+2 emerging
industries, including green energy technology, Asian Silicon Valley, biotech medicine, national defense,
smart machinery, new agriculture and circular economy. Among them, Asian Silicon Valley actively
introduced AI (Artificial Intelligence) and 5G (fifth-generation mobile communication technology) andother key technologies of digital economy because the government continued to promote the applicationof AI IoT applications and improve the investment environment for innovation and entrepreneurship, inorder to expand the application scope of IoT. The annual growth rate in 2021 was as high as 41%, which
was outstanding among the seven industries.

32.35

35.86

39.06

45.62

2019

2020

2021

26.39
2016

2017

2018

Growth Rate of 5+2 Key New Industries in 2020 & 2021
Green energy technology

Asian Silicon Valley

2021

22%

2021

41%

2020

22%

2020

-4%

Biotech medicine

National defense

Smart machinery

2021

-24%

2021

10%

2021

30%

2020

-2%

2020

-4%

2020

-6%

New agriculture

Circular economy

2021

33%

2021

2020

-

2020

18%
-11%

55

2021

Renewable energy with offshore wind power and solar photovoltaic as
the focus
In order to expand the promotion of renewable energy, the Ministry of Economic Affairs set a
policy target of 20% for renewable energy power generation in 2025,with offshore wind powerand solar photovoltaic as the core driving forces of Taiwan's energy transformation. EnTie
Bank responded to the government's green energy policy with practical actions, and spared noeffort in promoting energy transformation under the comprehensive consideration of risk and
ESG. In 2021, EnTie Bank approved the adjustment of the industrial limit of "hydropower andgas industry" from 10% to 12%, and added the upper limits of the sub-industries "wind power
generation" and "solar power generation" to be 6% of the financing by corporate financerespectively, with a total of 12%. In 2022, the industrial limit of "hydropower and gas industry"
was again increased to 13% after being approved by the board meeting; the upper limit of "windpower generation" was also raised to 7%.

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

In order to accelerate energy transformation, the Ministry of Economic Affairs further planned the"Four-year Promotion Plan for Wind Power Generation" in 2019. EnTie Bank actively participated in theoffshore wind power syndication loan cases selected and allocated by the Ministry of Economic Affairs,
and following the first wind farm offshore wind power in Taiwan, the Bank participated in the second windfarm offshore wind power financing case in 2019. Originally this case was to be completed in 2021, but
the project was delayed due to the impact of the pandemic, and the completion is postponed to 2022.
Later the Bank successively participated in the financing cases of Yunneng offshore wind farm located in
Yunlin and Zhangfang offshore wind farm and West Island offshore wind farm located in Changhua. The
former is the largest offshore wind farm project financing case in the Asia Pacific region, with a total unit
capacity of 640 MW, which is expected to start commercial running in the third quarter of 2023, and thelatter has a total unit capacity of 595.2 MW, which is expected to start commercial running in the fourth
quarter of 2022.

In 2021, the project financing balance of offshore wind power and solar photovoltaic will be
NT$6.008 billion, accounting for 4.8% of the Corporate financing balance and accounting for49.2% of the Green energy industry of 5+2 key new industries.

Offshore Wind PowerIn 2016, the Bank participated in Taiwan's first offshore wind power financing case handled in accordancewith the Equator Principle, with a total of 22 wind turbines in two stages, and a total installed capacity of
128 MW (MW is the unit of electricity, million watts). It began commercial operation at the beginning of
2020, and by the end of 2021, it has been completed for two years, expected providing 128,000 Taiwan
households with clean energy every year and reducing carbon emissions by more than 245,600 tons. The
case won the 2018 Asia Pacific Renewable Energy Project Financing Award from PFI (Project FinanceInternational), an international project financing professional media.

56

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

2021

Expected Financing Development Achievements of Offshore Wind Power Projects

Financing Development Achievements of Solar Photovoltaics

Total expected number of financing cases

Total expected number of financing cases Number of completion in 2021
Total capacity

Total number of
power generators

211 wind turbines

Total capacity

1739.2MW

Annual power
outputTotal Installation Capacity by 2021

Water surface
type1

200,000KW

0-

Ground type9

2,042,488KW

1

1,613,488KW

Rooftop type350

120,621KW

228

80,738KW

Fishery electricity
symbiosis

31

50,000KW

0

-

Total

391

2,413,109KW

229

1,694,226KW

4.82 billion degrees

Solar Photovoltaics
In order to give consideration to energy security, green economy and environmental sustainability at thesame time, the government listed the green energy industry as one of the "5+2" industrial innovationplans, and passed a promotion plan on October 27, 2016, striving to achieve the goal of 20% renewableenergy power generation in 2025, of which the solar photovoltaic device capacity accounts for 66.3%,
which is the highest. The plan clearly defines the goal and promotion roadmap: the short-term goal (to2020) is 6.5 GW of device capacity (GW is the unit of electricity, or 1 billion watts), and the long-term goal
(to 2025) is 20 GW.

Expected Financing Development Achievements of Offshore Wind Power and Solar Photovoltaics

Carbon Reduction
Power generation (degree) Emissions Reduction Afforestation benefits
OffshoreWind Power
Solar
Photovoltaics
Total

At present, EnTie Bank has undertaken a total of 19 solar power plants, and expects to develop a total of
391 solar power field projects, with a total installed capacity of 2,413,109 kW (kW is the unit of electricity).
By the end of 2021, 229 units, a total of 470,737.67KW of power can be connected in parallel with acapacity of 1,624,226 kW have been completed, including 228 rooftop solar farms with a capacity of
80,738 kW.

(metric tons)(hectare)4,820,000,000

2,419,640

244,408

2,963,297,852

1,487,576

150,260

7,783,297,852

3,907,216

394,668

Note 1: The solar photovoltaic power generation is calculated based on the official website of Taiwan Electric Power Corporation, and the annual average power generation
per kilowatt in 2021 is about 1,228 kWh.
Note 2: The carbon dioxide emission reduction is based on the 2020 electricity emission coefficient announced by the Energy Administration in September 2021, and each
kWh of electricity emits about 0.502 kg of CO2/kWh.
Note 3: The benefits of afforestation are based on the research commissioned by the Forestry Bureau of the Agriculture Committee. In 2010, the annual carbon dioxide fixation
per hectare of forest land was estimated to be 9.9 hectares.
Note 4: If the average monthly electricity consumption of each household is about 300 kWh, it can supply about 2.16 million households for one year.

57

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix2021

Sustainability-linked Loans

Introduction of ESG-type Funds

With the intensification of the impact from extreme global climate, sustainable development has become
the primary goal of the current global economic transformation. Financial institutions have successively
launched green loans or green bonds to help enterprises transform, and then help the society transformto a low-carbon economy and develop towards a green economy. Green loans or bonds have restrictions
on the purpose of fund use, and borrowers can only "use the funds for special purposes", that is, they can
only use the funds in projects that comply with the green energy and low-carbon transportation contracts, but
can not meet the needs of the market which take into account the society (S) and the governance (G) in ESG.
Therefore, sustainability-Linked loans that take into account the three aspects of ESG came into being.

EnTie Bank has introduced funds that are directly related to issues such as water resources, new energy,
climate change, environmental protection and ESG. A total of 10 funds were launched in 2018 and 2019, witha balance of about NT$74 million. It grew to 11 funds in 2020, and the balance was about NT$378million. As of2021, the products were expanded to 48 funds, with a total sales value of NT$1.283 billion, an increase of
120.8% over last year, and the balance was about NT$1.124 billion, an increase of 197.4%.

In 2021, the Bank has undertaken a total of 2 customers of sustainability-performance linked loans. The
main business items of the credit customers are batteries, modules and downstream systems (power
plants) in the solar energy industry chain. The long-term environmental goals are to promote local
economy, improve life, and environmental protection, carbon reduction and nuclear power plantelimination on a global basis. In terms of social participation, the UREVC is established to take positive
actions to contribute to the society on the two focal points of environmental care and social care. The
other customer is a telecommunications company. The credit case is linked to the ESG adjustment
mechanism to provide interest rate discount on the performance of customer related sustainability
indicators and performance achievement.

Electric Vehicle Industry
In response to issues such as extreme climate, global warming and serious air pollution, countries aroundthe world have recently announced the 2050 net zero carbon emission target, and listed low-carbon
transportation as the top priority. In order to achieve the policy goal of the Executive Yuan's "FullElectrification of Urban Buses by 2030", the Ministry of Transportation and Communications proposed thepromotion strategy of electric buses. It is expected that the replacement of diesel buses will be completed
by 2030 with 15,000 buses replaced, at an average of at least 1,500 buses replaced every year.
In 2021, the credit project of carbon reduction electric bus undertaken by EnTie Bank is expected to
produce 130 electric buses, which will be successively put into mass transportation in Taipei and New
Taipei City. As of April 2022, a total of 110 buses have been replaced. According to the statistics of the
Ministry of Transportation and Communications, the carbon emission of traditional diesel buses runningin urban areas is about 1.22 kg per kilometer; electric buses consume 0.5 to 1 kwh per kilometer, and thecarbon emission will be reduced to 0.7 kg.

Number and Proportion of 8 ESG types of funds
Climate change andenvironmental ecology fund

10.4%

5

Green bond fund

2.1%

4.2%

2

ESG sustainability bond fund1

ESG sustainability currency
fund

8.3%

Green energy and energy
transformation fund

Water resource fund

4

8.3%

4

8.3%

4

ESG sustainability multiple
asset fund

6.3%

3

ESG sustainability stock fund

25
52.1%

58

2021

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

Supplier Management
EnTie Bank attaches great importance to the partnership with the supply chain, incorporates the content
of corporate social responsibility into the scope of supplier management, and encourages suppliers tojointly implement corporate social responsibility with the Bank. In addition to their capabilities, suppliers
are also required to comply with relevant regulations on the environment, labor and labor safety andhealth, and jointly establish a supply chain that protects the environment, employee safety and health,and sustainable development. At the same time, we are committed to local procurement, and 100% of the
procurement expenditure comes from domestic suppliers. As of the end of 2021, there are 138
cooperative suppliers, and there is no major change in the scale of the organization and supply chain. In
the face of customer complaints about supplier services or products, the Bank follows relevant
regulations such as "Rules Governing Consumer Dispute Handling Measures, EnTie Bank", " Guidelines
on Customer Opinions and Handling Consumer Disputes, EnTie Bank".

Supplier Selection Procedures
Before carrying out procurement cooperation with suppliers, the relevant handling staff of the Bank willquery the current situation of the supplier's "commercial and industrial registration" through the websiteof the Ministry of Economic Affairs, or the business (tax registration) registration data through the websiteof the Ministry of Finance. After confirming the legitimacy of the supplier's identity, they will prepare a"Supplier Evaluation and Analysis Form" for future reference. All selected suppliers must comply with the"Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies" and the"Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies". In thecommercial contract, EnTie Bank has also formulated relevant provisions for sustainable development toensure that suppliers meet social environmental standards. Suppliers the Bank traded with in 2021 wereselected according to this principle.

2021 Number of Suppliers
No

No

Office Supplies Supplier20

Decoration, Plumbing and
Air Conditioning Supplier

12

Information Equipment andService Supplier

106

Yes
Procurement
request

Review

Selection of
supplier

Price inquiry
Price negotiation
Proofing

Yes
Review

Purchase contract
signing

Environment, society,human rights

Promotion of Suppliers’ Implementation of Sustainable Development
EnTie Bank expressly stipulates in the "Rules Governing Property and Expenditure, EnTie Bank" that
suppliers who have business dealings with the Bank must comply with environmental protection, security
and health related norms, and jointly perform sustainable development with the Bank. In order to further
implement the Bank's commitment and responsibility for supplier management, in 2017, EnTie Bank
formulated its "Guidelines for Promoting Suppliers to Implement Corporate Social Responsibility", which
requires suppliers to conduct business activities in a fair and transparent manner based on the principleof ethical corporate management, and fulfill their sustainable development obligation. If the supplier isinvolved in unethical behavior, it shall be liable for damage compensation, and the Bank may
unconditionally terminate or cancel the contract at any time; if the supplier ignores sustainable
development and has a negative impact on the environment and society of the community of production
source, the Bank may unconditionally terminate or cancel the contract at any time.

59

2021

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

Supplier Management Procedures

Selection

liabilities

Audit and
improvement

Selection by the outsourced institution; the potential entrusted institution participatingin the selection shall meet the following basic conditions.
1.The entrusted institution shall be a company registered in accordance with theCompany Act or the Business Registration Act.
2.The matters to be outsourced shall be the business items that the entrusted
institution can legally handle.
3.The entrusted institution shall have no major violations in the past two years.

For a contract with the purchase amount exceeding a certain amount, the supplier shallsign the "Supplier's Corporate Social Responsibility Self-assessment Form" and the"Human Rights and Environmental Sustainability Clause Commitment Letter".

1.Conduct regular and irregular audits of the entrusted institution and prepare an audit
report.
2.If the outsourced business involves the transmission of customer personal data via
computer network to the outsourced vendor for processing, the staff from theInformation Service Department should participate in the regular audit twice a year,
and handle the irregular audit by themselves.
3.Supervise the establishment and implementation of the internal control and internal
audit systems of the entrusted institution.
4.In the audit procedures above, if there are relevant violations found in the evaluation
and audit, the entrusted institution is required to put forward a correction plan toensure that the next implementation meets expectations.

60

2021

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

Environmental Sustainability
EnTie Bank is committed to creating a sustainable value with the social environment. In the face of the damage to the ecological environment caused by global climate change, the Bank understands that climate action
is urgent. In the face of the burden of its own operation on the environment, the Bank not only implements various energy-saving measures, but also sets various resource reduction targets, tracks and manages them
regularly, and looks forward to implementing energy conservation and carbon reduction and mitigating environmental impact by reducing resource consumption.

Environmental Management and Objectives

Energy Management

EnTie Bank has formulated the "Criteria for Sustainable Development Best Practice ", which lists"Developing a Sustainable Environment" as one of the principles of the Bank's practice of sustainable
development. In accordance with this principle, the Bank strictly requires itself to comply with relevant
environmental laws and regulations and international standards, protect the natural environment, and strive
to achieve the goal of environmental sustainability. In 2017, the Bank further implemented the "Guidelines
Governing Energy Conservation and Management" after being approved by the President, requiring
employees to improve their awareness of independent environmental protection, comply with relevant
environmental laws and regulations and international standards, and set energy conservation and carbon
reduction goals and management measures. For the organization of operational activities, the efficiency of
resource utilization should be considered, and recycled materials with low environmental burden should be
used as far as possible, so as to promote the sustainable use of natural resources. With the efforts of all
employees, EnTie Bank was not subject to any fines or sanctions for violating environmental laws andregulations in 2021.

In order to implement the Bank's commitment to environmental protection, relevant management measures
are implemented for various energy consumptions; through internal advocacy, the efficiency of use isimproved and the consumption is reduced. Regularly track the usage data every year, analyze and compare
the annual trend, and adopt rolling review and adjustment management measures.

Five-year energy conservation and carbon reduction goals and progress of EnTie Bank
2021 target
5% reduction in electricity consumption
success

2021

5,612,234 degrees

2016

7,061,082 degrees-20.5%

Energy Management Performance - Electricity Consumption
Electricity
consumption(degree)Electricity
consumption(MJ)
Staff number(persons)
CO2 emission(kg)

2021 target
5% reduction in CO2 emissions
success

2021

2,963,260 kg

2016

3,728,252 kg-20.5%

6,470,549
6,242,688
23,293,976.4
1,524

22,473,676.8

5,707,421

5,893,831

5,612,234

20,546,715.6

21,217,791.6

20,204,043.9

1,499

1,513

1,462

1,464

3,416,450

3,296,139

3,013,518

3,111,943

2,963,260

2017

2018

2019

2020

2021

Energy Management Performance - Other EnergyGas (liter)

2021 target
5% reduction in water consumption

2021

29.673 million liters

2016

26.984210 million liters

2021 target
5% reduction in paper consumption

9.1%

2021

58,949kg

2016

60,643 kg-2.8%

Note: The trend of water consumption has been decreasing since 2016. In 2021,the cleaning was frequent due to COVID-19, andthe water consumption increased slightly as a result.

Gas
consumption(MJ)
CO2 emission(kg)

34,6753571.86

24,802809.962,554.84

24,255792.1
2,498.5

2019

2020

2021

1,132.38

Note: The energy conversion coefficient is based on the unit calorific value table of energy products from the Bureau of Energy
in 2021.

61

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

2021

Energy Saving and Carbon Reduction Measures for Daily Operation
Electricity consumption management◎ Energy saving T5 or LED lights should be used in business halls and office areas.
◎ Cultivate the habit of turning off the lights when not needed, and turn off the lights and air
conditioning in unoccupied spaces.
◎ In summer, the temperature in the air-conditioning room should not be lower than 26 degrees Celsius, andthe doors and windows should be closed to prevent the air-conditioning from leaking out.
◎ Turn off the power supply of printers, computers, monitors and other relevant office equipment after work
every day.
◎ Set low energy consumption and power saving mode for public equipment.
◎ Check the air conditioning equipment regularly and carry out maintenance in time.
◎ Equip the windows with shutters or curtains to reduce solar radiation and reduce the energy consumptionof air conditioning.
◎ Regulate the on and off time of branch advertising signboards, and use timing switches to control theoperation.

General procurement

Procurement and Consumption of Office Resources Over the Years

Number of boxes of A4
photocopying paper
purchased

5,047

4,225
Kilograms consumed

49,348
Number of boxes of
ATM thermal paper
purchased

Green procurement
Purchase amount of A4
photocopying paper
Purchase amount of
T5 lights

4,252

168

52,489.92
166

49,663.36
154

4,494

1,755,676
1,746,650

1,366,584

4,803
56,099133

58,949131
1,880,640

1,781,830

45,957

96,102

67,49647,993

95,257

2017

2018

2019

2020

2021

Fuel consumption management◎ Encourage the use of teleconferences to replace face-to-face meetings to reduce the fuel consumption ofround-trip traffic.
◎ Take public transportation in principle when going out on business trips, and try to avoid driving to reduceenergy consumption.

Other resource management◎ Digitalization of internal documents and promotion of paperless work processes.
◎ Use reproduced or recycled paper or document transmission and photocopying, and take environmental
protection measures to jointly protect the earth.
◎ Adopt e-based online teaching or testing for training to reduce transportation costs, and implement
paperless handouts and test sheets.
◎ Do not take the initiative to provide paper-based written materials for meetings, but instead use electronic
announcements for the participants to download and use them.
◎ Paper cups and drinks are not provided at meetings for the benefit of environmental protection.
◎ Promote the implementation of paperless official documents or operation documents and e-payroll of
employees.
◎ Make good use of the printing function, set double-sided or multiple pages on one page to reduce theamount of paper and toner.
◎ For automatic teller machines (ATMS), number calling machines and other equipment that use thermal
paper, fully use the induction receipts certified by the Taiwan Testing and Certification Center that do notcontain bisphenol A to reduce the use of toner and ribbon, and provide the option of not printing
transaction details to significantly reducing paper consumption.
◎ Promotion of e-statement62

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

2021

Water Treatment and Waste Management

Water Resources and Waste Management for Daily Operation

EnTie Bank attaches importance to water resource management and continues advocating the concept of water
conservation internally. The Taipei 101 Building, where the Bank's headquarters is located, takes environmental
protection into account through green design, and set up a rainwater collection and storage system. The watercollected is recycled and reused for external wall cleaning and toilet water of the building, so as to optimize theefficiency of water resource consumption. The rest of the waste water is discharged to the urban sewer system
in accordance with government regulations. In 2021, the use of tap water by the head office (Taipei 101 Building)decreased by 26,000 liters from that in 2020, a decrease of 6.7% per annum; The tap water consumption ofother business units (excluding the head office) decreased by 932,000 liters, or 3.08% per annum from that in2020. The total tap water consumption of the Bank decreased by 958,000 liters, or 3.13% per annum.

Water consumption management

Tap water consumption statistics

single-sided waste paper and reduce paper consumption.
◎ Used document envelops or envelopes are reused for internal cross-departmental data exchange toreduce the waste of resources.
◎ If the paper of confidential documents needs to be discarded beyond the retention period, a vendor
should be entrusted to transport it to a professional destruction site for dissolution or destruction, so as toreduce the environmental load and waste discharge.
◎ The recycling of waste paper resources should be carried out regularly by a professional recycling
vendor, so that renewable energy can be used sustainably to improve resource utilization efficiency.
◎ Electronic media (including computers, hard disks, tapes, etc.) that should be destroyed should bedestroyed with the presence of the vendor at the designated destruction site to eliminate the risk of dataleakage and reduce environmental pollution.
◎ All kinds of property and equipment waste should be properly entrusted to the vendor for recycling after
de-identification and destruction of personal information, so as to facilitate the disassembly of recyclable
materials for recycling.

34.692000

Unit: million liter
Total water
consumption
Head office(Taipei 101 Building)
Other business units(excluding the head
office)0.35300
25.724000

30.631000
0.38700

29.6730.361

0.33900

25.686000
0.32500

25.38525.36134.33930.24429.312

2017

2018

2019

2020

2021

On waste management, the Bank implements classified waster recycling by dividing waste into recyclable
waste, general waste and kitchen waste, and sends them to the waste treatment center in the basement after
the cleaning personnel of the building inspect and confirm the classification status. The building will reprocesssome waste and convert it into reusable raw materials, so as to promote resource recycling and reuse. All 50
branches of the Bank are located in urban commercial buildings, and the waste is centralized in the building
for management, and the weight data of individual waste is not available.
Statistics of waste data destroyed

Waste paper
destroyed (ton)Informationequipment destructed
(ton)

31.07
16.24
1.05

0.85

2020

2021

◎ Turn off the tap when water is not needed to avoid waste of water resources◎ Purchase throttling and water saving equipment.
◎ Daily wastewater is discharged to the sewer or septic tank system to ensure that it does not pollute theexternal environment.

Waste management◎ Implement garbage classification and resource recycling.
◎ A non-confidential paper recycling area is set beside the photocopier to allow the staff to reuse

For waste that needs to be scrapped or destroyed, EnTie Bank has signed an "Information Equipment Scrapping and Recycling Service Contract" with the vendor, and thescrapped information equipment is handed over to the professional vendor for recycling, so as to improve the resource recovery rate and enhance resource reuse. In 2021, theinformation equipment replaced included 121 scrapped information equipment such as monitors, printers and photocopiers, each of which is calculated at 7kg, and the weightof the scrapped information equipment is about 1.05 metric tons. 2,173 boxes of waste paper were destroyed, and about 31.07 metric tons of waste paper were destroyed at
14.3 kilograms per box.
Electronic media (such as computer hard disks and tapes) are destroyed in a centralized manner once a year. During the operation, the staff of the Bank and the vendor will
carry out degaussing and physical destruction at the place designated by the Bank. For tape destruction, the degaussing operation is carried out at the place designated by the
Bank, and then the boxes will be sealed by the person designated by the vendor and the Information Security Control Section, and sent to the destruction site for physicaldestruction. The relevant destruction records will be kept. For the waste after destruction, according to the contract requirement, the vendor shall handle it in accordance with
relevant domestic laws and regulations on waste removal and disposal.

63Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

2021

Task Force on Climate-Related Financial Disclosures (TCFD)
Global greenhouse gas emissions continue to increase, leading to global warming, followed by averagetemperature rise and sea level rise. If no positive action is taken, there will be disastrous consequenceson the global ecological environment, human security and health, and the economy and society.
As the banking industry plays a vital role in the overall economic development, it has a key role in guiding
the industrial development and the cash flow of the capital chain. EnTie Bank faces up to its social
responsibilities in the low-carbon transformation, and follows the climate related financial disclosure
framework, including the governance, strategy, risk management, indicators and objectives announced
by the Task Force on Climate-Related Financial Disclosures (TCFD) in disclosing climate related risks
and opportunities.

TCFD Implementation Status
2021 Status and Future Goals
Governance■ The board of directors is responsible for reviewing risk management policies and procedures, and guiding and supervising various risk
management mechanisms.
■ The "Risk Management Committee" is set up under the President to assist in coordinating and reporting climate change related issues.
■ A "TCFD Project Team" is set up under the supervision of the President, and the top supervisor of the risk management unit serves as
the convener of the team.
■ The TCFD framework is introduced in phases to identify climate related risks and opportunities, plan relevant coping strategies toreduce the impact on operations, and disclose the results in this year's (2021) Sustainability Report.
■ The climate risk management mechanism continues to be strengthened. In the future, climate risks will be planned and integrated intorisk management policies and procedures, and the monitoring and implementation results will be regularly reported.
■ In order to strengthen the understanding of the board of directors, senior management and all employees on climate issues, it is
proposed to conduct training in the future and establish a climate risk management culture to cope with the impact and influence ofclimate risks.

Strategy■ Identify and rank physical and transformation risk factors of climate change, and assess the affected risk categories, business items andpossible periods according to the major climate risk items with higher impacts.
■ According to the identified major climate risk items (with increasing extreme weather events) and through the analysis of the regional
map of disaster risk potential in Taiwan, take inventory of the companies' affected operations and collateral risk exposures, andintroduce the scenario analysis and draw the risk roadmap for a quantitative analysis of financial impacts.
■ Based on the results of financial quantitative impact analysis of climate risks, master the impact of climate change, formulate coping
strategies and objectives, and implement them accordingly.
■ In order to cope with the potential risks of climate change and grasp the business opportunities, raise the credit limit of green energy
industry, support the funds needed for the development of low-carbon industries, and develop green financial services and products. In
the future, we will also actively promote the investment and financing business in the green field.
■ Climate change factors will be gradually incorporated into the Company's strategic planning, operation mode, financial planning andother decision-making processes.

Risk Management■ The Company follows the three lines of defense structure of internal control, and clearly delineates the climate risk management
responsibilities of each line of defense.
■ The Company will further develop differentiated risk management measures based on the impact of identified major climate risk items(with increasing extreme weather events) on its own operations and the exposed positions of collateral.
■ The current climate risk management measures and internal specifications will be gradually adjusted and optimized according to theCompany's business scale and risk characteristics, and by taking into account the climate stress scenario test results.
■ In order to cope with the impact and influence of climate change on the operation, we formulated the "Business Continuity Management
Policy of EnTie Bank", and timely implemented various supervision and management measures to ensure business continuity.

Indicators and Objectives■ Clearly define the list of high carbon emission industries and take inventory of the proportion of exposure risks to serve as the basis forinvestment and credit process evaluation.
■ In 2021, the board meeting approved to increase the green industry credit limits on "wind power generation" and "solar power
generation".
■ Actively participate in financing services for sustainable energy projects; the financing proportion growth was 2.1% in 2021.
■ Formulate the short and medium-term energy-saving and carbon reduction management objectives for the Company's daily operation
activities, and regularly disclose the implementation results.
■ Comply with the "Sustainable Development Roadmap of TWSE and TPEx Companies" issued for the government's 2050 net zerocarbon emission policy, plan the information disclosure of the Company's greenhouse gas inventory count and verification, and set
greenhouse gas emission reduction targets.

64

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix2021

Disclose corporate governance mechanisms for climate risks andopportunities

Governance

Responsibilities of the Governance Structure
Board supervision

Climate Change Governance Structure
Board ofDirectors

Senior Management/Risk Management Committee
The President is the highest supervisor of climate risks and opportunities, and a "Risk Management Committee" is set up under the
President to supervise the important issues of climate change. The President serves as the convener of the Committee, who shall selectthe highest supervisory director of each business head office and the head of each business responsibility unit to serve as the membersof the Committee, and a meeting shall be held regularly every two months. The President also supervises the "TCFD Project Team",which shall comprehensively review the climate related risks of each business, incorporate the climate risk supervision situation into therisk management report, and submit it to the Risk Management Committee. The Risk Management Committee will regularly report theimplementation of climate risk management measures every six months to grasp the development trend of climate change.

President

Risk Management
Committee
TCFD
Project TeamFirst line ofdefense

Second line ofdefenseThe board of directors of EnTie Bank is responsible for reviewing risk management policies and procedures, and guiding and supervisingvarious risk management mechanisms; the "Risk Management Committee" regularly reports the overall implementation of climate risk
management to the board of directors.

Third line ofdefenseTCFD Project TeamIn compliance with the TCFD guidelines, EnTie Bank promoted the introduction of TCFD structure and established a "TCFD Project
Team", with the top supervisor of the risk management unit as the convener and the Risk Management Department as the coordinating
unit. By integrating the business responsibility units related to climate change issues and complying with the project progress, EnTie Bank
convenes meetings to integrate climate risk management into the division of powers and responsibilities of the three lines of defense
structure of internal control in a cross-departmental cooperation mode. It is also responsible for the collection and research of climate
related information, identification and assessment of climate related risks and opportunities, implementation of relevant quantitative
analysis and indicators, and establishment of the short, medium and long-term plans for the introduction of TCFD, in order to implement
the TCFD project. It also assists in the formulation of relevant management measures to reduce the possible negative impact of climatechange, and reports the results of climate change risk scenario analysis and stress test to the President.

Responsible units of the three lines of defense/Risk Management Department
Corporate
Business
Management

Merchant
Banking

Risk
Management

Legal &
Compliance

Treasury

RetailOperation
Management

Business
Planning

Accounting

Consumer
Finance
Products

WealthManagement
Products

Corporate
CreditManagement

Consumer
CreditManagement

Insurance
Brokerage

Business
Supporting

Information
Services

Auditing Dept

Responsible units of the first line of defense:
The units shall assess the climate risk when handling relevant businesses, especially for industries that are greatly affected by climate risks.
Responsible units of the second line of defense:
The risk management unit shall effectively monitor the implementation of climate risk management by the first line of defense, and thelegal compliance unit shall ensure that the operations of all units comply with the laws and regulations.
Responsible units of the third line of defense:
The units shall assist the board of directors and the senior management in assessing the effectiveness of the first and second lines ofdefense for climate risk monitoring, and provide timely improvement suggestions.
Risk Management Department:
Responsible for the management and monitoring of all risks of the Bank, the implementation of risk management decisions approved by
the board meeting and the Risk Management Committee, the development of risk management policies, the timely reporting and early
warning of important risks, and the regular reporting of all risks to the Risk Management Committee. In the future, according to its TCFD
planning process, the Company will include climate risks in the risk management policies and procedures, review the relevant climate risk
control norms and mechanisms of the Company, supervise the implementation and operation of the Company's climate risk management,
and integrate the results of various climate risk change assessments and scenario analysis into the risk management report to be
regularly submitted to the Risk Management Committee. In order to strengthen the understanding of the board of directors, senior
management and all employees on climate issues, it is proposed to conduct training in the future and establish a climate risk management
culture to cope with the impact and influence of climate risks, and create opportunities for sustainable economic development.

65

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

2021

Climate Risk Matrix

Disclose the actual and potential impacts of climate risks and opportunities,
and their impact on company operations, strategies, and financial planning

Strategy

EnTie Bank cooperates with external consultants to define 14 types of climate risk items related to its own
business and operation. Through different risk assessment criteria, including potential vulnerability(measure EnTie Bank's readiness, resilience and adaptability to various risks), potential impact degree(assuming that climate-related risks have already occurred, EnTie Bank will comprehensively consider
the financial impact of various businesses and the damage to its brand image before any mitigation andimprovement measures are taken) and possibility of occurrence, various transformation risks andphysical risks are presented in the form of a three-dimensional risk matrix for the understanding of the risk
items that EnTie Bank needs to strengthen in the management.

Climate Risk Identification
In the process of climate change,as financial institutions need to interact with customers with different industrial
backgrounds, their risks may be more extensive than those of customers. Therefore, the impact of climate riskon their strategies and decisions must be fully considered to ensure the stability of their operations. In
accordance with the guidelines of the competent authorities and TCFD, EnTie Bank classifies climate relatedrisks into transformation risks and physical risks to identify and analyze their potential impacts. A transformation
risk refers to a risk arising from the transition of enterprises to a low-carbon economy, and a physical risk refers
to the physical impact caused by climate change.
Impact on EnTie BankTransformation Risks

Technology

MarketReputation

Enterprises will invest more funds to support the transformation of
low-carbon technologies, thereby reducing carbon emissions andincreasing energy efficiency.
Changes in customer behavior lead to increased market uncertainty;
High-carbon industries are faced with increased production costs andweakened competitiveness, resulting in changes in the supply anddemand of their products and services
The trend of energy saving and carbon reduction has caused changes incustomer and investor preferences; if companies do not participate in
low-carbon actions, they will receive more negative feedback from more
stakeholders

Under the trend of low-carbon transformation,
the credit risk of EnTie Bank may deteriorate
as the asset value of credit holders of highcarbon emission industries may decline; after
the implementation of low-carbon related laws
and regulations, the Bank must adjust thecredit policies of high carbon emission
industries, such as setting limits or prohibiting
commitments, which may lead to the
reduction of business opportunities and loss ofsome business.

Physical Risks
Extreme weather

Long-term
Climate Change

Increased frequency and severity of extreme weather events, such as
typhoons, rainstorms and droughts.

Changes in long-term climate patterns may lead to an increase in averagetemperature and sea level

The disaster damage to tangible assets willlead to the decrease of collateral value; when
the customer's property suffers a loss, its
repayment ability will be affected, which may
increase the loss of EnTie Bank.

9

Uncertainty of market signalsaRise of averagetemperaturereIncreased frequency
off extremete weatherth– rainstormm

M

7
Rise of sea
a level6

M Cost of low carbonc

L

Customerepreferencec changetechnology transformationr

5
Increasedfrequencyey ofextremeweather – ddroughte4

ML

Increased investmentriskv
of high carbon
o assets

3
2

L

H

M

H

H

Increased frequencyofrextreme weather–etyphoonIncreased requirementsrand specificationscrelated to sustainabilitysIncreased
negative feedback from interested
parties
e
i
e

1

0

1

2

3

4

Extreme weather

Increased frequency of extreme weather – rainstorm

2

Extreme weather

Increased frequency of extreme weather – typhoon

3

MarketUncertainty of market signals

4Long-term climate change

Rise of average temperature5

Laws, Regulations and Policies

Increased cost of greenhouse gas emissions

6

MarketImpact of market changes on existing product mix

7

Technology

Cost of low carbon technology transformation

8

Laws, Regulations and Policies

Increased requirements and specifications related tosustainability

M

L

1

and services

Increased costo of greenhouses
gas emissionsn

Litigation risks related too climate changee

Risk

Risk aspect

M

Impact oof marketchangess on existingg
product mix andM
servicess8(Potential Vulnerability)

The control of greenhouse gas emissions has become increasingly strict,for example, enterprises are required to draw up carbon trading plans orLaws, Regulations
carbon reduction targets. The disclosure system of environmental andand Policies
sustainable information has become stricter, and compensation for climate
related litigation has increased.

(Likelihood)

109Long-term climate change

Rise of sea level

10Extreme weather

Increased frequency of extreme weather – drought

11

Reputation

Customer preference change

12Laws, Regulations and Policies

Litigation risks related to climate change

13Laws, Regulations and Policies

Increased investment risk of high carbon assets

14

Reputation

Increased negative feedback from interested parties

5(Potential Impact)
L

L

M

H

H

1

2

3

4

5

H, M and L represent the possibility of risk occurrence

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Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

Impact of significant climate risks on EnTie Banking business
After considering the financial losses that may be caused by related business emergency situations and the 14 climate risks mentioned above, EnTie Bank will analyze the existing risk categories, business items andoccurrence time of the seven risks that need to be strengthened. In the future, we will also take these factors into consideration when formulating business, strategy and financial planning. In view of the increase in thefrequency of physical risk items - rainstorms and typhoons, EnTie Bank will conduct climate scenario analysis on its own and leased premises and real estate collateral, and formulate appropriate risk mitigation andtransfer measures according to the quantitative analysis results. For other risk items, the Bank will continue tracking relevant issues and make strategic adjustments.
Risk type

Risk

Physical Risks

Increased frequency of extreme

Physical Risks

Description■ Strong natural disasters may cause property loss of EnTie Bank itself or its customers. For example, operating assets are flooded andweather – rainstorm

unable to operate normally, resulting in interruption of operation; the information center is affected by natural disasters, resulting in data

Increased frequency of extreme

damage and non-delivery; enterprises need to invest more capital and costs to prevent climate risks.

Existing risk
categories affected

Businesses
affected

Credit risk

The Bank’s own operation

Operational risk

Real estate mortgage loan

Time ofoccurrence
Short term
Medium termLong term

weather – typhoon

Transformation
Risks

Physical Risks■ It is difficult to predict the interactive impact of low-carbon transformation on the industry, and more costs must be invested for the research.
Uncertainty of market signals■ The consensus on energy conservation and carbon reduction will impact the existing market model, including supply and demand andcustomer preference. In the short term, specific assets may devalue, and in the long term, there will be a risk of asset repricing.

Rise of average temperature■ The rise of average temperature will lead to the decline of production capacity of specific industries, which will impact the related
investment and credit business of EnTie Bank.

Corporate financing
Credit risk

Project financing

Investment risk

Stock and bonddepartment

Short term
Medium termLong term

Corporate financing

Credit risk

Project financing

Investment risk

Long term

Stock and bonddepartment■ The competent authority's control on greenhouse gas emissions are increasing year by year, which will directly or indirectly affect theTransformation

Increased cost of greenhouse

Risks

gas emissions

operating costs of enterprises. For example, when customers are faced with increased costs due to the increase of energy prices and theCredit risk

Corporate financing

Medium term

production of alternative products required by laws and regulations, their repayment ability may become poor, resulting in the financial

Operational risk

Project financing

Long term

The Bank’s own operation

impact of EnTie Bank.

Transformation

Impact of market changes on

Risks

existing product mix and services

Transformation

Cost of low carbon technology

Riskstransformation■ When the market has not recognized and understood the risks of climate change, if EnTie Bank takes relevant measures too early, it willlead to the reduction of service items or the increase of service thresholds, which will affect the Bank’s competitiveness; if measures are

Market risk

The Bank’s own operation

Credit risk

Corporate financing

taken too late, the potential loss of the Bank will also increase.
■ If the risks of various low-carbon transformation paths are not taken into account in the evaluation of financial assets at this stage, the valueof the financial assets may be impacted in the process of low-carbon development.

Project financing

Medium termLong term

Medium termLong term

Note: Short term refers to possible occurrence within 1 to 3 years, medium term refers to possible occurrence within 3 to 10 years, and long term refers to a likely occurrence after 10 years.

67Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

2021

Identification and Results of Climate Related Opportunities
In the face of increasingly severe climate change risks, in addition to continuously focusing on thedevelopment of climate change trends, mastering the operational risks of climate change to the Bank andimproving the risk management mechanism, EnTie Bank has actively identified the opportunities thatclimate change may bring to its operation, and compiled issues related to opportunities from climatechange with the TCFD as the focus, and with reference to the climate related risks and opportunities
report, global financial industry climate related trend analysis information and benchmark financial
industry cases. The members of the TCFD Project Team and relevant internal departments and theirsupervisors have identified potential development opportunities of their businesses related to climatechange, and developed corresponding financial products and services to create asset value forcustomers.

Green Credit
At this stage, in order to actively respond to the national energy policy and comply with the government's
energy transformation vision, with offshore wind power and solar photovoltaic as the core driving forcesof Taiwan's energy transformation, EnTie Bank responds to the government's green energy policy withpractical actions, and spares no effort in promoting energy transformation under the comprehensive
consideration of risk and ESG. In 2021, EnTie Bank approved the adjustment of the industrial limit of"hydropower and gas industry" from 10% to 12%, and added the upper limits of the sub-industries "windpower generation" and "solar power generation" to be 6% of the financing by corporate financerespectively, with a total of 12%.

Offshore Wind PowerIn terms of offshore wind power renewable energy, in addition to participating in Taiwan's first offshore
wind power financing project (total installation capacity 128MW) in accordance with the Equator Principle
in 2016, and the business operation started in 2020. The Bank also participated in the second offshore
wind power financing project (total installation capacity 376MW) in 2019. After that, it successively
participated in the financing projects of Yunneng offshore wind farm (total installation capacity 640MW),
the largest offshore wind farm project in the Asia Pacific region, and Changfang offshore wind farm andWest Island offshore wind farm (total installation capacity 595.2MW); the business operation is expected
in 3Q23 and 4Q22 provide clean energy, respectively.

Solar Power Generation
In terms of solar power generation, it is assessed that the amount of solar power cases is small, the risk
is smaller than that of wind power generation, and the market has potential business opportunities.

Considering the future development, it is necessary to accelerate the development of solar photovoltaic
project financing. Currently, there are 19 projects of solar power plants undertaken by EnTie Bank, and391 solar power projects are expected to be developed. By the end of 2021, 229 projects have been
completed, including 228 rooftop solar power projects, to provide stable and clean energy for the benefitsof climate related opportunities for business development.

Electric Buses
In order to expand the development of renewable energy, in response to such issues as extreme climate,global warming and serious air pollution, EnTie Bank has undertaken a loan project of its own for carbon
reduction electric buses. It is expected to produce totally 130 electric buses, which have beensuccessively put into mass transportation in Taipei and New Taipei City. According to the statistics of the
Ministry of Transportation and Communication, the replacement of traditional diesel buses with electricbuses will reduce the carbon emission by 0.52 kg per kilometer in the urban area, and bring a better living
environment for the citizens.

Green Buildings
In order to promote the sustainable development of the environment, the Bank fully supports thegovernment in promoting the urban renewal plan, and uses energy-saving building materials andenergy-saving marked equipment, or applies for the green building mark to reduce energy consumption
and meet the greening volume targets. For example, we have undertaken green building syndication loan
projects with more than 130 tons of carbon absorption per year, and transformed the communities to beenergy-saving, carbon reduced, ecologically greened and friendly, so as to create a tripartite-win effectamong the environment, the residents and the Bank.

Green Investment
In order to comply with the upgrade of the government's "Green Finance Action Plan" to version 2.0, andstrive to promote green finance, when evaluating the investment of green bonds in its securities
investment process, EnTie Bank allows preferential issuance conditions to green bonds than those ofordinary bonds. With the joint efforts of its staff, the balance of green bond investment has significantly
increased from NT$285 million at the end of 2020 to NT$575 million at the end of 2021, with a view tofulfilling the responsibilities of an institutional investor.

Green Funds
EnTie Bank actively develops green financial products and introduces funds directly related to issues
such as water resources, new energy, climate change. The number of funds launched has increased
from 8 in 2020 to 48 in 2021, and it is expected that the number of green funds on the shelves will
increase year by year.

68

2021

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

Physical Risk Scenario Analysis
According to the AR6 of the UN Intergovernmental Panel on Climate Change (IPCC), the new climate model CMIP6 and the Shared Socio-economic Paths (SSPs) are used to replace the past "Representative
Concentration Pathways" (RCPs) to define the scenarios of future climate change, and the assessment and selection are focused on four hypothetical scenarios. According to the warming range from low to high, they
are SSP1-2.6, SSP2-4.5, SSP3-7.0 and SSP5-8.5. Considering that the disaster risk map currently used in Taiwan only analyzes the RCP 8.5 scenario, which is the closest to SSP5-8.5, and in order to avoid
underestimating the impact of future disasters, EnTie Bank has selected SSP5-8.5 with the highest temperature rise as the scenario for the physical risk analysis of real estate collateral and self-owned (leased) bank buildings.

SSP1-2.6

SSP2-4.5

SSP3-7.0

SSP5-8.5

This scenario is the climate and social scenariothat countries around the world are striving toachieve. The global carbon dioxide emissions will
drop significantly and reach net zero after 2050.
The global average temperature rise is 1.8 ℃(the temperature rise is about 1.3 ~ 2.4 ℃).

Most countries in the world are still trying toachieve the goal of greenhouse gas reduction,
but they will not reach net zero by 2100. After
2040, the global average temperature will exceed
2 ℃, and the temperature at the end of the
century may increase by 2.1~3.5℃.

The world has entered a situation of inequality.
High - and middle-income countries have a goodquality of life and environment, but low-income
countries are in a more serious situation of highlabor and low wages. The competition forresources among countries in the world is more
intense. The global temperature may increase by
2.8 ~ 4.6 ℃ at the end of the century.

The scenario of global high emission ofgreenhouse gases means that people do notcare about the cost of economic development,
and countries in the world do not have any
reduction action but continue to rely on fossil
fuels. The global average temperature at the endof the century increased by 4.4 ℃ (temperature
range: 3.3 ~ 5.7 ℃).

Subject of Physical Risk Quantification – Real Estate
Collateral and Self-owned (Leased) Bank Buildings

Disaster risk map of Taiwan _ Hazard
degree _ Future estimation

Flooding in Taiwan _ Vulnerability

Flooding in Taiwan _ Hazard
vulnerability _ Future estimation

In order to cope with the extreme climate and consider that the risk of
the increasing frequency of extreme weather such as rainstorms andtyphoons has a great impact on EnTie Bank, according to thecomprehensive assessment of the National Science & Technology
Center for Disaster Reduction (NCDR) on the 269 townships andtowns in Taiwan with a flooding potential, the risk degree of flood
disaster is divided into five levels based on the degree of damage,vulnerability and exposure to the flooding disaster, with reference tothe research literature on the impact of flooding on the house price ineach area, and the relevant parameters (such as rainfall, geologicaldisasters and flood potential, the impact of flooding on the house
price, etc.) of impact assessment through model simulation arebrought in to estimate the financial impact caused by flooding. In
addition, the impact assessment items (including the loss ofmachinery and equipment, the claim of customers for damage, andthe loss caused by the interruption of financial services) are added tothe self-owned (leased) bank buildings to effectively assess theimpact aspects and impact degree.

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Physical risk quantification targets – distribution of flood high risk areas
Northern region
Keelung
TaipeiTaoyuan

New Taipei
City

Hsinchu

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

Physical risk quantification results
High risk area

Scenario analysis according to NCDR RCP 8.5
Real estate collateral

0.08%

Self-owned buildings

1(flooding in Taiwan _ Risk map of hazard vulnerability)

HsinchuCountyMiaoliCountyCentral region

Yilan
CountyHigh risk area

High climate risk identification

High climate risk identification

Real estate collateral

Self-owned buildings

High climate risk
Real estate collateral
Loan balanceHigh climate risk
Value of self-owned buildings

Taichung
Real estate collateral

0.04%

Self-owned buildings

0

ChanghuaCountyYunlinCountyNantouCountyHualienCountyChiayi
ChiayiCountyTainanKaohsiung

Credit risk

Taitung
CountyExpected loss

Impairment of self-owned buildings
Operating costs and expenses
Loss of operating income
Amount covered by insurance

Pingtung
CountySouthern region

High risk area
Chart description

Real estate collateral

0.10%

Self-owned buildings0Area illustration

Flood risk level

Real estate collateral

Loss ratio

Self-owned buildings

Number of buildings

High climate risk area
Real estate collateral
Expected loss ratio
About 0.08%

High climate risk area
Self-owned buildings
Total financial loss about 0.01% of the total
assets70

2021

Risk Management

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

Disclose how organisations identify, assess and manage climate change risks

In accordance with the three lines of defense structure of internal control, EnTie Bank has clearly divided the climate risk management responsibilities of each line of defense, so as to effectively manage the risk of climatechange. The first line of defense (Corporate Business Management Department, Merchant Banking Department, Treasury Department, Retail Operation Management Department, Consumer Finance Products
Department, Wealth Management Products Department, Insurance Brokerage Department, Business Supporting Department) shall be responsible for assessing and identifying climate risks and implementing effective
internal control procedures when handling relevant businesses. The second line of defense (Risk Management Department, Corporate Credit Management Department, Consumer Credit Management Department,
Business Planning Department, Accounting Department, Legal & Compliance Department and Information Services Department) is responsible for the formulation of the overall bank's climate risk policy, monitoring theimplementation of the first line of defense on climate risk management, and reporting the climate risk management situation to the board of directors or the senior management, and the legal compliance unit shall ensurethat the operations of each unit comply with the laws and regulations. The third line of defense (Auditing Department) carries out audits in an independent and detached spirit, assists the board of directors and the senior
management in auditing the effectiveness of the first and second lines of defense in climate risk monitoring, and provide timely improvement suggestions.
Based on the identified climate related risks, the direct impact on EnTie Bank due to the increase of extreme weather events (rainstorms and typhoons) and influence are on its own operation, and the indirect impact andinfluence are on the real estate collateral. The following management measures are taken to mitigate climate related risks:
Risk

Impact and influence

Management measure

Direct-the Bank’s
own operation■ In order to cope with and reduce the possible negative impact of climate change on the operation, the Bank formulated the "Sustainable Management Policy for the Operation of
EnTie Bank" with the approval of the board meeting in 2020, so as to take various supervision and management measures in a timely manner to reduce the impact on the operation,
protect employees, safeguard consumers' rights and interests, and ensure the provision of products and services in response to various major accidents such as natural or
man-made damages, and maintain the continuous operation of the Bank.
■ The Bank conducts a number of emergency disaster risk and digital data protection risk drills on a regular basis every year to familiarize the employees with the accident risk control
procedures and to examine the timeliness and feasibility of the contingency plan. The management has also established an operation impact analysis and risk assessment
mechanism to assess the importance of the system and the impact degree of the interruption, so as to effectively manage the system interruption risk, measure the probability ofoccurrence and the impact degree of the risk, and develop management strategies and procedures to cope with and reduce the risk.
■ When selecting the site of the operation base, avoid low-lying flooded areas and areas prone to earth flow or mountain moving.
■ The related risks of self-owned and leased bank buildings are transferred by purchasing insurance.

Indirect-real estatecollateral■ The Bank has established credit granting related internal regulations for audit, collateral appraisal and price management. In the assessment process, the Bank will consider
whether the real estate collateral is located in a low-lying flooded area and an area prone to earth flow or mountain moving, which shall be reference factors for loan approval orloan ratio. The Bank will continue to monitor relevant risks after the loan is extended.

Increase in extreme
weather events(rainstorms andtyphoons)

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Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

In addition, according to the business scale and risk characteristics, the Bank plans to formulate climate related risk management measures based on the following principles:Management scopeManagement measure

Stock and bond department■ Adhering to the principle of sustainable development and shouldering the corporate social responsibility, the Bank takes continuous investment in environment-friendly investment
targets and sustainable operation as its long-term strategic objective, and gradually integrates ESG risk factor analysis into the investment decision-making process according to
the short, medium, and long-term time plan.
■ Short term planning: Assess the environmental, social and governance risks of the industry by examining various ESG factors, and list the industries with high ESG risks asprohibited industries for investment according to the analysis results of the Bank, such as non-public welfare gaming, pornographic and tropical rainforest raft industries, which havea certain negative impact on the social environment and social governance. At present, the Bank has carried out ESG pre investment assessment and inspection for potential
investment targets in the mainland, and continuously monitored the investment targets and dynamically adjusted the investment strategy; subsequently it will incorporate ESG
related risk assessment process into the overall investment decision, so as to effectively achieve the investment goal of green finance decarbonization.
■ Medium and long term planning: Actively support investment products for green investment and social benefits, such as green bonds, sustainable development bonds and social
responsibility bonds, and give priority to issuers with good ESG performance to support industries with good prospects and sustainable development goals; do not support issuerswith high carbon intensity, so as to make joint efforts for sustainable financial development.

Corporate financing
Project financing■ The credit process is included as an important part of the Equator Principles 4.0 Guidelines. Before the credit case is submitted for review, the business unit shall fill in the ESG
check form to be checked according to the four aspects of environment, society, corporate governance and customer complaint cases. Among them, whether the customer has been
involved in the tropical rain forest cutting and whether it belongs to the high-carbon emission industry shall be checked for the environment aspect, so as to determine whether thecustomer is a high ESG risk customer. If it is, the customer's business shall not be undertaken in principle, otherwise the customer shall be asked to issue a statement of ESG
enhancement measures. After an evaluation of the reasonability, the feasibility of the enhancement measures will be analyzed in the credit application document, and thecommitment terms for environmental and social issues as well as the measures in case of failure to meet the commitment terms will be formulated.
■ If environmental and social risks are involved in handling large-scale project financing cases, based on the goals of green finance and sustainable development of the industry, thefollowing principles will be referred to in addition to following the general credit collection regulations:I.
Set up a special assessment team to conduct a special assessment and review of environmental and social impact and post-loan monitoring.
II. Confirm that the credit customer has made reference to the TCFD framework; assess and analyze the possible climate related physical risks of large-scale project financing caseswith high environmental and social risks, and assess and analyze the climate related transformation risks of large-scale project financing cases with high carbon emissions.
III. Confirm whether the credit customer of a large-scale project financing case has conducted greenhouse gas inventory checking on the project according to the regulations of thecompetent authority.
IV. If a large-scale project financing case is handled by means of syndication loan, the sponsor bank or the management bank shall assist the participating banks in obtaining
relevant reviews on the environmental and social impact project assessment, as well as post loan monitoring reports and information of the project financing.

Real estate mortgage
loan/housing loan

■ The Bank has established credit granting related internal regulations for audit, collateral appraisal and price management. In the assessment process, the Bank will consider
whether the real estate collateral is located in a low-lying flooded area and an area prone to earth flow or mountain moving, which shall be reference factors for loan approval orloan ratio. The Bank will continue to monitor relevant risks after the loan is extended.

Business type

Investment

Financing

Climate Risk Hotspots
EnTie Bank review the top ten risk exposure industries of investment and financing in 2021, and ranked them by importance according to the results of public information research, so as to pay attention to the major climate risks of various
industries and track and manage them accordingly. The top three risk industries of the investment and financing business of EnTie Bank are likely to face climate risks with great impacts. The financial and insurance industry are facing
increasing extreme weather events (rainstorms and typhoons), and the electronic component manufacturing industry and the hydropower and gas industry are facing the costs of low-carbon technology transformation and increased
investment risk with high carbon assets. In the future, the relevant bank units shall follow the climate related risk management measures above when undertaking their businesses, so as to mitigate the losses caused by climate risks.

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Indicators and Objectives

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

Disclose goals and metrics for assessing and managing climate risks and opportunities

Energy Conservation and Carbon Reduction Goals and Progress
The achievement of energy saving and carbon reduction goals in 2021 is measured with 2016 as the base year. EnTie Bank will take 2021 as the base year, and set the target of reducing 2% in the next five years toactively practice sustainable development and strive to achieve the goal of energy saving and carbon reduction.

Five-year energy conservation and carbon reduction goals and progress of EnTie Bank
2021 target

Consumption data in 2016

Consumption data in 2021

Achievement status in 2021

(with 2016 as the base year)

2026 targets(with 2021 as the base year)

5% reduction in electricity consumption

7,061,082 degrees

5,612,234 degrees

A reduction of 20.5%

2% reduction in electricity consumption

5% reduction in CO2 emissions

3,728,252 kg

2,963,260 kg

A reduction of 20.5%

2% reduction in CO2 emissions

5% reduction in water consumption

26.984210 million liters

29.673000 million liters

An increase of 9.1%

2% reduction in water consumption

5% reduction in paper consumption

60,643 kg

58,949 kg

A reduction of 2.8%

2% reduction in paper consumption

Note: The trend of water consumption has been decreasing since 2016. In 2021,the cleaning was frequent due to COVID-19, and the water consumption increased slightly as a result.

Planning of greenhouse gas inventory taking and verification schedule
In the face of climate change risks, EnTie Bank is committed to creating a low-carbon operating environment with a low-carbon strategy. The schedule of greenhouse gas inventory taking and verification is as follows:

Work items
Set up a greenhouse gas inventory taking and verification task force.
Set up a full-time (part-time) unit, assess the number of full-time (part-time) personnel and the scope of their duties, and set up an internal verification unit.

Expected completion time
July 2022
Before the first quarter of 2023

Formulate plans for talent training, strategic objectives, control mechanism, internal verification and external verification.

Before the second quarter of 2023

Complete greenhouse gas inventory taking.

Before the fourth quarter of 2023

Conduct external verification.

Before the fourth quarter of 2024

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Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

High carbon emission industries
In order to combat climate change and reduce carbon emissions, EnTie Bank, with reference to the data of the Environmental Protection Department, IFC, IPCC and other external institutions, clearly defined the"List of High Carbon Emission Industries", with the industries facing transformation risks as the non-ferrous base metal manufacturing industry, chemical industry, plastic industry, cement industry, power supply
industry (excluding wind and solar energy), petroleum and natural gas mining industry and steel industry. The proportions of high carbon emission industries in December 2021 have not changed much comparedwith those in December 2020. The Bank will continuously monitor and report the proportions of high carbon emission industries to facilitate the assessment and control of relevant risks before investment or loan
extension.

High carbon emission industries

Proportion of high carbon emission industries ininvestment and financing
2020/122021/12

Non-ferrous base metal manufacturing industry

0.20%

0.28%

Chemical

1.16%

0.81%

Plastic

0.35%

0.36%

Cement

0.36%

0.46%

Power supply (excluding wind and solar power)

3.61%

3.39%

Oil and natural gas exploitation

2.14%

2.84%

Steel

1.54%

1.48%

Total

9.36%

9.63%

Green financing
In response to the government's green energy policy, EnTie Bank added the green industry credit service
and sustainable energy service in its credit business. Among them, in corporate banking’s financing, theproportion of renewable energy project financing with offshore wind power and solar photovoltaic as thefocuses gradually increased from 1.4% in 2019 to 4.8% in 2021.
Balance in 2019
Balance in 20202020年餘額

Balance in 2021
2021年餘額

Domestic offshore wind power project financing

NT$1,561 (million)

NT$3,022 (million)

NT$4,082 (million)

Domestic solar photovoltaics project financing

NT$160 (million)

NT$193 (million)

NT$1,926 (million)

Proportion in corporate banking financing

1.4%

2.7%

4.8%

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Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

AppendixSocial Care
EnTie Bank attaches importance to the recruitment and development of diverse talents,
provides employees with perfect wages and benefits, an equal workplace environment
and professional learning and training, and actively participates in social public welfare
and education to the disadvantaged to practice social participation and care.

Diverse Talent Recruitment P.76

Employee Benefits and Health P.81

Employee Training and Development P.87

Social Participation P.90

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Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

Diverse Talent Recruitment
Sound and perfect human resources are an indispensable element for the steady growth of the Bank. EnTie Bank believes that employees are the important core and asset of the financial service industry. In addition to
implementing the supporting measures of talent selection, recruitment, cultivation and retention, EnTie Bank will continue to uphold a fair and equitable attitude, find suitable talents, work together for the Bank’s vision,and create a diverse, equal and competitive workplace.

Current Situation of Human Resources
In the face of global competition in the financial environment with factors such as a reduction of the working population and the change of age structure, the banking industry is facing severe challenges in humanresources. EnTie Bank continues to strengthen the cultivation of core talents and reserve cadres internally, and actively solicits potential financial talents externally as a response for strengthening human resources.
EnTie Bank's job vacancy information is open and transparent. Personnel recruitment information is posted on the Bank's official website and human resources websites, and employees are also encouraged to actively
recommend outstanding talents, hoping to recruit financial professionals through diversified recruitment channels.
As of the end of 2021, EnTie Bank had a total of 1,468 regular employees ; among them, there were 232 management employees and 1,236 non-management employees. In order to improve the employment situationand ensure labor rights and interests, the branches of the Bank give employment opportunities to local personnel in Taiwan first, and all employees are of ROC nationality. In addition, EnTie Bank continues to recruit
cross-field financial professionals to meet the financial service needs of different customers, and launch diversified financial products. At the same time, the Bank has planned a sound promotion and compensation systemand human resources policy for the employees to grow steadily. In 2021, the Bank’s new recruit rate was 17.9%, and the turnover rate was 17.5%.
1,468(100%)

Gender and Age Distribution of
Employees of EnTie Bank

Gender and Education Level Distribution of
Employees of EnTie Bank
1,468(100%)
280(19.1%)

Total

582
150

1,047
(71.3%)

232(15.8%)

199(13.5%)

55

86

886
582

MasterUniversity(college)670

377
Under 30 years

4(0.3%)

Taiwan region

PhD

886
130

30-50 years

Gender and Position Distribution of
Employees of EnTie Bank

Total

Taiwan region

Over 50 years

1,468(100%)

141(9.6%)

Male
FemaleTotal (number of people)(number of people) (number of people)
Proportion of total
employees (%)

High schooland below

4
115

84

858
1,174
(80.0%)

728

74

Total

115
582

1,236
(84.2%)

117
Management
position

446
17

886

Taiwan region

91(6.2%)

Male
FemaleTotal (number of people)(number of people) (number of people)
Proportion of total
employees (%)

Non-management
position

465

771

Male
FemaleTotal (number of people)(number of people) (number of people)
Proportion of total
employees (%)¹ The Bank also has 24 non-regular employees, including 18 men and 6 women, who are employed in the form of dispatch and outsourcing with no employment relationship with the Bank, so they are not included in the total number of employees.

76Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

2021

Gender and Age Distribution of New Recruits of EnTie Bank

263(17.9%)29(2.0%)166(11.3%)
20(1.4%)

Taiwan region
Total
Over 50 years

Taiwanregion166(11.3%)

103(7.0%)

Turnover20.9%

30-50 years

18.8%
17.9%

20.6%

rate (%)

63(4.3%)

Under 30 years

New recruit
rate (%)

97(6.6%)
9(0.6%)

EnTie Bank’s New Recruit Rate and Turnover Rate Over the Years

15.1%

17.5%

68(4.6%)25(1.7%)
Male (number of people)
New recruit rate (%)

43(2.9%)Female (number of people)
New recruit rate (%)

2019

2020

2021

Total (number of people)
New recruit rate ² (%)² The new recruit rate is calculated as: the number of new recruits in this age group in 2021 / the total number of employees on December 31, 2021.

Gender and Age Distribution of Resigned Employees of
EnTie Bank

257(17.5%)37(2.5%)136(9.3%)

Taiwan region

121(8.2%)

Total

18(1.2%)

Over 50 years

74(5.0%)87(5.9%)29(2.0%)30(2.0%)Male (number of people)
Turnover rate (%)

Female (number of people)
Turnover rate (%)

19(1.3%)161(11.0%)30-50 years

Under 30 years

59(4.0%)Total (number of people)
Turnover rate ² (%)³ The turnover rate is calculated as: the number of resigned employees in this age group in 2021 / the total number of employees on December 31, 2021.

77

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

2021

Diversity and Equality in the Workplace
EnTie Bank abides by the labor laws and regulations, treats all employees with the concept of fairness, justice and respect, and is committed to establishing an equal, inclusive and zero discrimination workplace to enable
employees to work at ease. EnTie Bank follows international human rights norms and supports the protection of basic human rights, has formulated and implemented the "Human Rights Statement of EnTie Bank", andregularly reviews the effectiveness of corporate human rights policies or statements. In 2021, the Bank actively implemented its "Human Rights Declaration", "Key Points for Promoting the Corporate Social Responsibilityof Suppliers", and "Criteria for Ethical Management" in the fields of human rights, labor, environmental protection and anti-corruption, and followed the core labor standards in the UN Universal Declaration of Human
Rights, the UN Global Compact, the UN Guiding Principles on Business and Human Rights, and the ILO Declaration on Fundamental Principles and Rights at Work, as well as the domestic Labor Standards Act. There
was no major violation of laws in 2021 (with a fine of more than NT$1 million). EnTie Bank recruits all kinds of professionals through an open and fair selection process, without any discrimination due to gender, sexual
orientation, race, class, age, marriage status, language, ideology, religion, political party, native place, place of birth, appearance, facial features or physical and mental disorders, and provides equal work opportunities
for each employee. There were no complaints of discrimination in 2021.
Human Rights Management and Achievements

Human rights issue

MeasureAchievement

Forced labor◎ Abiding by the provisions of various labor laws and regulations.
◎ Making a monthly announcement to remind the staff of therelevant regulations on work attendance.
◎ Those who exceed the normal working hours shall apply forovertime.

1. Provide working hours superior to the statutory requirement.
2. Verify and make the overtime pay.
3. For the staff with abnormal attendance, remind their supervisors of their attendance by e-mail or SMS.

There were no relevant cases ofpunishment in 2021.

Discriminationand illegal
infringement in
the workplace◎ Formulating the "Key Points of EnTie Bank’s Plan for Preventionof Illegal Infringement in the Performance of Duties".
◎ Providing a notification mechanism and risk assessment ofillegal infringement in the workplace.

1. Incorporate the "concept of prevention of illegal infringement in the workplace" into the compulsory
courses for new recruits.
2. Regularly carry out hazard identification and risk assessment for illegal infringement prevention in theworkplace.

1. A total of 247 new employees were arranged for training.
2. There was no notification of relevant cases in 2021.

Sexualharassment◎ Formulating the "Key Points for Prevention, Appeal andPunishment of Sexual Harassment in the Workplace of EnTie
Bank".

1. Set up a Sexual Harassment Complaint Review Committee to deal with sexual harassment complaints There were no relevant complaint cases in 2021.
throughout the Bank.
2. Provide sexual harassment complaint channels.

Maternal
protection◎ Providing maternity leave, maternity check-up leave, paternity
check-up and paternity leave as well as the system of parental
leave without pay according to law.
◎ Providing relevant health education information.

1. Set up breast feeding and milk collecting rooms.
2. Provide relevant health education information during pregnancy or postpartum by on-site service
doctors through telephone or visit.
3. Provide a flexible working hour system.

1. In 2021, the rate of application for parental leave without pay
was 60%.
2. A total of 19 people of pre and post pregnancy healthconsultation service was performed through on-site doctors.

◎ Formulating the "Key Points of EnTie Bank’s Plan for Preventionof Human Induced Hazards”.
◎ Workplace management and maintenance.
◎ Implementing labor safety and health training.

1. Provide labor insurance and group insurance according to law, and assist in applying for relevant
subsidies.
2. Regularly carry out inspection of electrical equipment and fire protection in the office environment.
3. Organize occupational safety related training.

1. There was no case of punishment for safety inspection
deficiencies in 2021.
2. Arranged electrical inspection and fire inspection in 2021
and completed the public safety inspection and declaration ofbuildings in accordance with the regulations.
3. Arranged workplace safety and health training to new
employees for a total of 247 person times.

WorkplacesafetyImplementation policy

Human Rights
Declaration

78

2021

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

Diverse Talents and Equality

Workplace Sexual Harassment Prevention System

In terms of the employment of people with physical or mental disabilities, EnTie Bank follows thegovernment's regulations on the employment of people with physical or mental disabilities, provides
equal work opportunities for people with physical or mental disabilities, continues to employ people withphysical or mental disabilities, and arranges suitable positions according to their expertise, so as tocreate a fair and respectful working environment. In 2021, EnTie Bank employed an average of 10 people
with physical or mental disabilities.

In order to create a friendly, safe and respectful environment and protect the Bank's workplace from

EnTie Bank also echoes the gender equality of the UN SDG5 sustainable development goal and provides
equal opportunities for both men and women in the employee selection, recruitment, education andretention without any differences due to gender. In 2021, the proportion of male and female employees
was 39.6% and 60.4% respectively, and the proportion of male and female management employees was
50.4% and 49.6% respectively. The proportion of women has increased over the years, which fully showsthat EnTie Bank provides opportunities for gender-equal competition and development.

sexual harassment, EnTie Bank has established a system to prevent sexual harassment in the workplaceand formulated the "Key Points for Prevention, Appeal and Punishment of Sexual Harassment in the
Workplace”. At the same time, EnTie Bank has set up a sexual harassment complaint and investigation
mechanism, announced sexual harassment prevention and control measures and complaint channels,
and set up a Sexual Harassment Complaint Review Committee as a special unit for handling sexual
harassment cases. Employees can lodge complaints through multiple channels such as dedicated line,
fax, e-mail, etc., and all cases will be handled by specially assigned persons and in a confidential manner.
In the training courses for new recruits, information on the notification mechanism related to sexual
harassment is also added.
In 2021, EnTie Bank did not receive any complaints of sexual harassment.

Position Distribution of Female Employees of EnTie Bank
2019

2020

2021

Proportion of female employees (%)

58.0%

58.7%

60.4%

Proportion of female management
employees (%)

44.9%

45.9%

49.6%

Proportion of basic-level female
management employees (%) ⁴

52.1%

55.3%

57.6%

Proportion of mid-level female
management employees (%) ⁵

36.5%

37.1%

41.6%

Proportion of senior-level female
management employees (%) ⁶

9.1%

10.0%

18.2%

Item

⁴ Definition of basic-level management: section supervisor, wealth management business supervisor, operation supervisor, and consumer
finance team leader.
⁵ Definition of mid-level management: department head and deputy department head, branch head, and regional center head and deputyhead.
⁶ Definition of senior-level management: head and deputy head of the highest system or above.

79

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

2021

Fair Compensation and Reward
EnTie Bank provides a compensation system that is internally fair and externally competitive, and iscommitted to providing excellent salary and benefits, attracting and retaining talents from all sides, andproviding salary adjustments and incentive bonuses according to personal performance and the Bank's
operating conditions, so as to give back profits to employees and make the overall compensationcompetitive in the market. At the same time, EnTie Bank has a "Salary and Remuneration Committee",which regularly reviews the salary and remuneration policy and structure according to the results of theannual market salary survey.
The basic starting salary of new recruits of EnTie Bank is above the basic salary required by the Labor
Standards Act. The monthly fixed salary of new regular employees recruited in 2021 is more than 1.08
times the statutory basic salary. New recruits are paid according to their job responsibilities; thecompensation is linked to the market level, and assessed according to their experiences, educational
levels, positions and professional skills, and the compensation does not differ due to factors such as
gender, race, marriage status and age.

EnTie Bank offers a sound salary structure, and the total compensation includes a fixed annual salary,bonuses for the three festivals, performance bonus, sales bonus and employee remuneration. For
non-regular employees, EnTie Bank requires the dispatching and outsourcing companies to comply withthe laws and regulations, pay wages in line with the statutory norms of wages to their workers with
employment relations, and strictly abide by the minimum wage, extended working hours and otherstatutory standards. In terms of regular employees, the starting salary of women and men over the years
has been equal pay for equal work, and the calculation of salary, bonus and remuneration does not differ
based on gender. The difference in the proportion of total annual salary between women and men invarious positions in 2021 is shown in the table below:

In 2021, EnTie Bank had 1,401 full-time employees who hold non-management positions. The averagesalary of full-time employees with non-management positions was NT$939,000, the median salary offull-time employees with non-management positions was NT$803,000, and there was an increase overthose in 2020. The differences are as follows:

Proportion of Women’s Total Annual Salary to Men’s Total Annual Salary at EnTie Bank

Number of EnTie Bank’s Full-time Employees with Non-management Positions and the Salary
Information

Proportion of total
annual salary

Item
Number of full-time employees with
non-management positions
Average salary of full-time employees with
non-management positions
Median salary of full-time employees with
non-management positions

2020

2021

FemaleMale

Female

Male

Unit

2020

2021

Difference (%)

General employees (%)

100%

111%

100%

111%

person

1,365

1,401

2.64%

Management-level employees (%)

100%

128%

100%

136%

NT$ thousand

884

939

6.22%

Basic-level managers (%)

100%

117%

100%

114%

NT$ thousand

751

803

6.92%

Mid- and high-level managers (%) ⁷

100%

134%

100%

130%

⁷ The main reason for the two-year salary difference of mid- and high-level managers is due to the change of personnel.

80

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

2021

Employee Welfare and Health
Adhering to the business philosophy of "speed, professionalism and trust", EnTie Bank is committed topromoting the care and well-being of employees, creating a safe and healthy workplace environment,
establishing good two-way communication channels, and offering dependence and trust to employees.

Employee Benefits and Welfare
EnTie Bank has built a happy and healthy workplace through a comprehensive employee care plan, sothat employees can balance their health and family life after work, and achieve the goal of being LOHAS
employees. EnTie Bank provides various care and welfare programs for employees which can be divided
into the four aspects of incentive bonus system, employee core security, preferential subsidy plan, anddiversified comprehensive activities. The Bank also has an Employee Welfare Committee. See thefollowing table for the number and amount of subsidies for various welfare projects in 2021:

EnTie Bank’s Welfare Measures
Group insurance/health care
Social insurance

Incentive
bonus systemCoreemployeebenefits

Preferential
subsidy plan

Diversified andcomprehensive
activities◎ Employee savings deposits with preferential interest rates◎ Preferential interest rates for housing and consumer loans◎ Marriage, childbirth and hospitalization subsidies◎ Children's scholarship subsidy◎ Chartered hotel and travel allowance◎ Chartered store and group purchase discount◎ Training plan
◎ Annual party

The Bank pays for the group term life insurance, major disease insurance,
injury insurance, occupational injury insurance and occupational disasterinsurance for employees; in addition, employees are provided with

A total of 32 people applied forpreferential

insurance claims, with a total

rates

for

additional

life

insurance,

injuryinsurance,

hospitalization and medical insurance and cancer insurance.

amount of NT$1,057,235

Pandemic and vaccine insurance Since 2021, the Bank provides all bank employees with pandemic andvaccine insurance.
Travel insurance

Employees who travel by air for business or training may be insured withtravel safety insurance and accidental injury insurance by using the Bank's
credit card.

Subsidies
Employee marriage subsidy

NT$10,000 for each employee

A total of 24 people applied forthe subsidy, with a total amountof NT$240,000

Employee childbirth allowance◎ Labor insurance and national health insurance◎ Labor pension◎ Employee/family group insurance◎ Health check◎ Special leaves superior to the requirement of the Labor Standards Act◎ Flexible working hour system◎ Pandemic and vaccine insurance

Labor insurance (including occupational disaster insurance), national healthinsurance, and payment (allocation) of labor pension according to law.

Group insurance

EnTie Bank’s Employee Care and Welfare Measures ⁸◎ Bonuses for the three festivals◎ Year-end bonus◎ Performance bonus◎ Special event bonus◎ Sales bonus

Statistics of 2021

NT$5,000 for each employee

A total of 28 people applied forthe subsidy, with a total amountof NT$140,000

Employee hospitalization

NT$2,000 for each employee.

A total of 51 people applied forthe subsidy, with a total amountsubsidyof NT$102,000
Employee funeral subsidy

NT$100,000 for each employee

Scholarship for employees'

The amount of subsidy varies according to the education level of the child:

A total scholarship amount ofchildren

NT$6,000 per academic year for university/college study

NT$2,303,000 was paid out

No application was made forthe subsidy

NT$5,000 per academic year for senior high school/vocational school study
NT$2,000 per academic year for junior high school study
NT$1,000 per academic year for elementary school study
Leaves and working hours
Working hours

The working hours are superior to the statutory requirement

Annual leave

3 to 30 days based on seniority

Flexible working hours

A flexible working hour system is available to employees with the need to 1 person applied for flexible
facilitate their arrangement of family time and life

38.75 weekly working hours
working hours

⁷ EnTie Bank currently does not have employee benefit trusts.

81

2021

EnTie Bank’s Welfare Measures

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

Statistics of 2021

Preferential deposits and loans
Preferential deposits for
employees
Housing loan

The Bank offers to employees referential deposits, housing loans andA total of 18 people applied for

consumer loans to enable them to use money flexibly

the loans, with a total amountof NT$45,510,000

Consumer loan
Employee activities
Year-end party

A large-scale year-end party is held every year to thank employees for

Due to the consideration of

their hard work for the year

the pandemic situation, thebusiness units held theiryear-end party individuallyChildcare measures
Corporate childcare service for

The Bank signed a corporate childcare service contract with a specific Continue to sign corporate

employees' children

institution to provide preferential childcare services to employees' children.

childcare service contract with
Hess International Educational
Group and O.U.R.S Education
Inst.

Working hours

The working hours are superior to the statutory requirement

38.75 weekly working hours

Annual leave

3 to 30 days based on seniority-

Flexible working hours

A flexible working hour system is available to employees with the need to facilitate their arrangement of family time and life82

Preface

About EnTie

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Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

2021

Family Care Welfare Measures

Number of EnTie Bank’s Employees with Parental Leave Without Pay and Reinstatement

EnTie Bank attaches importance to the work and life balance of employees, and provides relevant
subsidies, vacations and financial incentives as family care welfare measures. The Bank provides
marriage allowance, funeral allowance and consolation fund for major injuries. EnTie Bank also provides
employees with preferential deposits, housing loans and consumer loans to meet employees' capitalneeds.
EnTie Bank also planned corresponding measures for parental leave without pay. In the working
environment, the Bank has set up a nursing room to protect the rights and interests of female employees
who return to work after childbirth. Qualified employees can choose whether to continue to participate in
the original social insurance during the period of leave without pay; on welfare subsidies, they are entitledto the childbirth subsidy, childcare subsidy and children's scholarship; on the leave system, they areentitled to the maternity examination leave, paternity leave, parental leave, family care leave andmenstrual leave. Please refer to the following table for the number of parental leave without pay andreinstatement in 2021:

Number of Family Care Related Leaves of EnTie Bank

37
(187)

Female

21
(57)

32
(32)

11
(19)

Parental leave

Male

FemaleTotal

Number of qualified applicants in 2021 (A)

40

64

104

Number of actual applicants in 2021 (B)

1

21

22

2.5%

32.8%

21.1%

Number of people pending reinstatement in 2021 (C)

1

9

10

Number of people applying for reinstatement in 2021 (D)

0

6

6

Reinstatement rate (D/C)

0%

66.7%

60.0%

Number of people reinstated in 2021 (E)

2

10

12

Number of people reinstated for one year in 2021 (F)

2

10

12

100.0%

100.0%

100.0%

Application rate (B/A)

Retention rate (F/E)

68
(130)

0
(0)

Male
Family care leave
Number of people(Person-time)

Maternity(paternity) leave
Number of people(Person-time)

Menstrual leave
Number of people(Person-time)

83

2021

Pension System and Plan
On employee retirement care, according to regulations, employees may retire by themselves, or the Bank
may force them to retire in accordance with the Labor Standards Act. EnTie Bank's defined benefit plan
formulated in accordance with the Labor Standards Act and the Labor Pension Act includes the"Measures for Employee Retirement, Severance, Occupational Disaster Compensation and Pension",and a Labor Pension Reserve Supervision Committee is established to handle employee retirement andpension payment. The Bank also carries out actuarial calculations of the pension reserve throughprofessional actuarial consultants every year, so as to protect the rights and interests of employees toclaim pensions in the future and ensure full allocation.
Employees who are employed on or after July 1, 2005 or who choose to apply the Labor Pension Act(new pension system) shall allocate 6% of their wages to the personal pension account at the Labor
Insurance Bureau every month. Employees who apply the Labor Standards Act (the old pension system)
or choose to apply the new system but retain the seniority on the old pension system shall allocate at least
2% of their wages to the old labor pension reserve in the special account at the Bank of Taiwan based on
their total monthly salary.

Workplace Environmental Health and Safety
Employees are the most important assets of an enterprise. In order to promote workplace health and work
environment safety, the Bank has established the "Key Points of EnTie Bank’s Plan for Prevention of
Human Induced Hazards" and the "Abnormal Workload Induced Disease Prevention Plan for EnTie Bank
Affiliated Personnel", and comprehensively conducted various safety and health promotions to maintainthe physical and mental health and safety of employees.

Workplace Health Risk
In order to improve the health and well-being of all employees, meet the health needs of employees, andrespond to the four major health risk issues of chronic diseases at the workplace, illegal infringement,maternal protection, and infectious disease prevention, the Bank carries out job hazard identification andprovides the following specific preventive measures:

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

Health Risk Prevention Measures and Achievements◎ Regular health examination: The Bank provides employees with regular health examination in order to help
employees understand their personal health status.
◎ On site doctor health consultation: In 2021, we cooperated with chartered doctors and held a total of 9
health consultation services. In addition to providing consultation services for employees' health care, we provided
medical guidance and improvement suggestions to employees for the analysis and evaluation of labor healthexamination results.
◎ Health lectures: In 2021, a total of 7 lectures on health issues were held, and doctors and experts were invited
to help employees improve their health concepts and disease prevention based on health issues of their concern(including: prevention of the latest virus development of COVID-19, instructions and protection of vaccine injection,
prevention of aortic dissection, and understanding of dementia and prevention).

◎ Hazard identification: In order to assess the risk of illegal workplace infringement caused by human orenvironmental factors, the Bank conducts hazard identification and risk assessment on the prevention of illegal
workplace infringement for each unit every year according to the possibility and severity of the hazards.
◎ Prevention plan: For the protection measures of employees' working environment and personal safety, the Bank
promotes the "Prevention Plan Against Illegal Infringement in the Performance of Duties", eliminates any infringement and human rights violations in the workplace, in order to create a safe workplace environment. In recent years,
there has been no complaint of illegal infringement in the workplace received by the Bank.
◎ Training and publicity: The Bank has incorporated the "concept of prevention of workplace infringement" into
the compulsory courses for new recruits to introduce the types of workplace infringement and subsequent handlingprocedures, improve the basic concept of labor safety and health, promote the physical and mental health of
employees and reduce the risk of workplace safety.

◎ Doctor consultation: For female employees during pregnancy and less than one year after delivery, the Bank
invites on-site service doctors to complete a total of 19 risk hazard assessment questionnaires and confirmations
by telephone or visiting the workplace, and provide relevant health education information during pregnancy andpostpartum.

◎ In response to the epidemic of special infectious diseases, the Bank has implemented relevant epidemic prevention
measures and protection publicity in accordance with the Guidelines on Workplace Safety and Health, and urged
the employees to pay attention to their own health care and maintain workplace health and safety.
◎ In response to the COVID-19 pandemic, the Bank complies with the pandemic prevention policy of the central
pandemic command center to carry out rolling pandemic prevention measures and health protection publicity, andhas established a notification mechanism for tracking and managing employee health status according to the risk ofinfection to track and care for employees' health in a timely manner. In addition, the Bank launch the backup mechanism for employees to work in different places and in flexible working hours, so as to jointly prevent the pandemic
and protect the health of employees.

84Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

2021

Environment Safety of the Workplace
In order to ensure the daily work safety of employees, EnTie Bank has deployed occupational safety andhealth business supervisors, first aid personnel and fire management personnel in each of the officebuildings of the branches and the head office. The occupational safety and health business supervisor is
to command and supervise the units under his/her responsibility to implement safety and healthmanagement matters, and coordinate and guide the personnel in the units to implement occupationalsafety related businesses. The first-aid personnel shall assist in matters related to first aid for
occupational disasters within the unit; the fire prevention management personnel are responsible for the
implementation of emergency evacuation notification and prevention drill of each unit, and assist in
confirming the inspection of fire prevention appliances. The Bank regularly arranges relevant personnel
to participate in on-the-job retraining courses in accordance with laws and regulations, so as to enrich thelatest knowledge required of the positions.
Preventive measures◎ Professional qualified vendors are appointed to carry out electrical equipment testing in office environment
once every year.
◎ Professional fire-fighting vendors are appointed to conduct fire-fighting inspection at each business unit once
every year.
◎ The public safety inspection of buildings is carried out twice every year in accordance with the provisions ofthe "Regulations on the Certification and Declaration of Public Safety Inspection of Buildings" formulated by
the Ministry of the Interior.
◎ The Bank signed a contract with a security company for strict access control and security maintenance aroundthe clock.

◎ In order to ensure the daily work safety of employees, EnTie Bank has deployed occupational safety andhealth business supervisors, first aid personnel and fire management personnel in each of the office buildingsof the branches and the head office.
◎ The Bank regularly inspects the qualification of occupational safety related personnel of each unit, and sends
staff to participate in pre service or on-the-job professional training designed for "occupational safety andhealth business supervisors", "first aid personnel" and "fire prevention managers" organized by professional
institutions in accordance with the provisions of occupational safety related laws and regulations.
◎ The Bank conducts pre employment occupational safety related training and publicity for new recruits, andarranges regular occupational disaster prevention knowledge courses for on-the-job employees.
◎ The Bank has formulated the "Disaster Emergency Response Measures"; all units has formulated relevant
protection plans for possible disasters, and regularly conducts training and practical exercises to enhance theemployees' ability to deal with various situations and maintain the safety of the Bank's employees, property,
premises and operating equipment.

◎ All units of the Bank (including business units and head office units) need to formulate relevant protectionplans for natural disasters, and launch the "disaster emergency response training and drill" twice a year.
According to the environmental and business characteristics, each business unit also needs to launch the"safety protection training and self-defense marshalling drill" twice a year. In 2021, a total of 2,898 persons
participated in the second "disaster response training" for the whole Bank; each business unit also conducted
two additional "safety protection training and self-defense marshalling drill", with a total of 880 participants.

Employee Occupational Injury
EnTie Bank has formulated public medical leave in accordance with the law, and assists employees withoccupational injuries to apply for subsidies from labor insurance and group insurance. In 2021, a total of
16 employees suffered from occupational injuries, all of which were accidents on the way to and fromwork or on business (13 people in traffic accidents and 3 people in general accidents), accounting for
1.09% of the total number of employees. The Bank assisted all of them in handling occupational injury
hospitalization, injury payment and public injury leave based on the actual injury situation and according
to the relevant provisions of labor insurance.

Statistics of Occupational Injuries of EnTie Bank’s Employees
Item

Male

FemaleTotal

Number of deaths due to occupational injuries

0

0

0

Number of serious occupational injuries

0

0

0

Number of recordable occupational injuries

5

11

16

Number of working days lost

20

78

98

Occupational injury rate ⁹

0.36

0.80

1.17

Absenteeism rate ¹⁰

0.01

0.02

0.02

Lost day rate ¹¹

1.46

5.69

7.15

Occupational disease rate ¹²

0.00%

0.00%

0.00%

⁹ Occupational injury rate (IR) = (total number of occupational injury leaves/total working hours) x 200,000 hours; one person in each occupational injury.
¹⁰ Absenteeism rate (AR) = total absence days/total working days x 100%.
¹¹ Lost day rate (LDR) = (total working days lost due to disability injury/total working hours of the year) x 200,000 hours x 100%.
¹² Occupational disease rate (ODR) = total number of occupational diseases/total working hours x 200,000 hours x 100%.

85

2021

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

Opening of Two-way Communication Channels
In recent years, EnTie Bank has promoted its organizational change, transformed its organizational
culture, and paid more attention to employees' opinions and feedback, in the expectation of establishinga two-way interaction and mutual understanding communication mode through communication activities
and the establishment of channels, so as to effectively convey business ideas and development
strategies, reach a consensus of all employees, and enhance employees' sense of identity and loyalty to
the Bank
In order to promote the harmony between the labor and the management, EnTie Bank holds thelabor-management meeting to discuss labor benefit issues. At the same time, EnTie Bank has a labor
union, and will grant public leave when the labor union cadres hold union related activities according tolaw. EnTie Bank and the labor union have signed a group agreement to promote the smooth andharmonious communication between labor and the management. As of the end of December 2021, a totalof 818 people had joined the labor union, accounting for 55.7% of the total number of employees at theend of December.
EnTie Bank adheres to an open and friendly communication attitude, listens to the voices of employees,
provides a variety of channels for employee communication, opinions and appeals, maintains a goodinteractive relationship with employees, and protects the complainants from improper treatment due tothe accusation. Employees can communicate through the Bank's internal website and internal meetings
to keep abreast of the Bank's developments. In addition to face-to-face communication between
supervisors and employees, there are communication and appeal channels for employees' opinions andappeals.

86

2021

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

Employee Training and Development
Excellent employees are the key to the sustainable operation of enterprises. In order to improve thecompetitiveness and professionalism of employees, EnTie Bank has built a complete induction training
and professional capability training system according to the direction of organizational development
strategy. In terms of learning mode, with the transformation and progress of digital technology, the Bank
provides multiple learning channels, such as video online courses, online learning platforms, internal
lecturers, etc., so as to broaden the vision of learning and encourage employees to continue learning for
growth. At the same time, EnTie Bank attaches importance to employees' career development plans andtraining blueprints, and encourages employees to strengthen their financial expertise through theperformance evaluation and job rotation mechanism, so as to respond to changes in market demand,
actively and quickly learn, pursue self-growth and breakthrough, and drive organizational changes.

Training statistics of EnTie Bank’s new employees

In 2021, due to the impact of the pandemic, physical courses were reduced and replaced with digitalcourses, so the average training hours per new employee decreased slightly.
New Employee Training Statistics

Unit

2019

2020

2021

Total number of new employees

Number of people

317

221

263

Total number of courses for new employees

Number of classes

46

38

32

Induction Training and Learning Plan

Total new employee training hours

Hour

4,638

3,576

3,402

Since the beginning of employment, there are planned training courses available at various stages
according to different functions which are conducted in parallel through the inheritance and guidance ofapprenticeship experience and human resources training and development, in order to assist newcomers to understand the Bank's organizational culture, working environment, occupational safety andlegal compliance. New comers are able to quickly integrate into the organizational culture and receive
sufficient training through online and physical courses.

Average training hours for each new employee

Hour

14.6

16.2

12.9

Total number of new employees trained

Person-time

875

589

551

Average times of new comer training per person

Number of times

2.8

2.7

2.1

Induction training course for new employees of EnTie Bank
Online course of new
employee pre service training

Course description: introduction to EnTie Bank, company vision, business philosophy andintroduction to the businesses of various business groups, labor safety and health training,sexual harassment prevention and publicity, and prevention of illegal infringement in theworkplace and publicity of notification mechanism.

Guide to newcomer area

After new employees join the Bank, in addition to the guidance and assistance of the unit staff,
the Bank has set up a newcomer area, which includes the Chairman's encouragement to new
employees, the Bank's profile, employee work rules, salary and welfare, leave application andother system descriptions, human resources service network and online learning platform
operation manual, and introduction to information system operation. Through classified
reading and inquiry, new employees can understand the organizational culture of the Bank,
the rules and regulations and various commonly used systems that the employees shouldknow.

Online courses ofpublicity of laws andregulations for newcomers

Course description: employee confidentiality education, Personal Data Protection Act,
information security, money laundering prevention and countering terrorism financing, Money
Laundering Control Act, Ethical Corporate Management Best Practice Principles, and financial
friendliness training.

Business field
professional training

Manual of training navigator for newcomers

87Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

2021

Professional Capability Training Courses

Distribution of training courses of EnTie Bank

In addition to newcomer training, EnTie Bank provides internal and external training and further education
resources from time to time to meet the needs of professional expertise improvement for various jobs,
and continues to refine the professional capabilities of various functions to provide better services tocustomers.

General skills

Internal and External Training Resources Provided by EnTie Bank

EnTie Bank held 317 training courses in 2021, with a total of 492 classes. The average training of each
employee is 40.2 hours, the average training times is 22.5, and the average training cost is NT$2,810.
The key topics of the training courses are mainly related to the revision of laws and regulations and legal
training courses.

1%

0.3% 0.2%
1.5%

3%

19.0%

18.0%

22.0%

75.0%

80.0%

71.0%

2019

2020

2021

Leadership andmanagement

Internal training resources
Various exclusive on-the-job training and training courses are provided according to employees' different job categories
and career stages:－ Legal compliance certificates: tutorials for law advocacy and certificate examination－ Professional knowledge: financial products and business marketing skills courses－ Leadership and management: courses to strengthen the management ability of supervisors－ General skills: courses to improve workplace soft power
External training courses◎ Each year, each unit of EnTie Bank prepares the cost budget of external training courses according to the positions andprofessional skill demand of employees, and selects business-staff to participate according to the course contents
offered by external institutions, and encourages and arranges employees to learn the current situation of the industry
and improve their professional capabilities.
◎ EnTie Bank actively cultivates digital financial technology professionals in response to the government's promotion of
the development of financial digital transformation. In addition to participating in the digital financial development
seminars and training held by external institutions, EnTie Bank strengthens its talents' understanding of emerging
technologies and financial innovation trends, with a view to developing the Bank's digital financial transformation
strategy through the successful experience of domestic and foreign financial technology.
◎ In compliance with the competent authority’s promotion of the "Trust 2.0 Plan", the Bank actively dispatches the staff inrelevant fields to participate in trust related courses, seminars and case sharing held by external training institutions,so as to improve the professional capability of talents in this field, master the up-to-date trust knowledge, understandthe needs of the elderly, and provide property and security planning for the elderly. In addition, the Bank plans to send
specific staff to participate in the "training and certification for financial planners for the elderly" to increase the trust
professionals of the Bank. After the seed personnel participate in the professional training and certification, they will
expand the knowledge to the staff in related fields and improve the trust profession and execution ability.

3%

1.0%
1.0%
4.0%

Newcomer training
Industrial knowledge
Legal compliancecertification

Statistics of training to all staff of EnTie Bank

Type

Unit

2019

2020

2021

Total number of courses

Number of classes

448

449

492

Total training hours

Hour

66,85462,76559,025

Average training hours per person

Hour

44.2

42.9

40.2

Total number of people trained

Person-time

31,45534,12933,009Average training times per person

Number of times

20.8

23.3

22.5

Average training cost per person

NT$

2,595

2,839

2,810

88

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Statistics of Training of All Employees of EnTie Bank According to Gender and Position
Unit

2019

2020

2021

FemaleHour

38,35735,75035,373Male

Hour

28,22727,01523,652

Management position

Hour

14,512

14,282

14,098Non-management position

Hour

52,072

48,48344,927

Female

Hour

43.8

41.7

39.9

Male

Hour

44.2

44.7

40.6

Management position

Hour

63.9

64.3

60.0

Non-management position

Hour

40.5

39.1

36.4

Type

Total training
hours

Averagetraining hours
per person

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

In addition, in order to ensure that all the staff understand the relevant regulations and important laws andregulations of the Bank's business, so as to reduce the operational risk of performing business, the online
courses of "Bank-wide Statutory Training" and “Newcomer Training" of EnTie e-Learning Network havebeen planned and listed as one of the performance evaluation items of the head office. After the training,
there are also online tests to monitor the training achievement rate and quality.

Promotion and Career Development
In order to encourage employees to pursue the goal of excellence and self-expression, EnTie Bank has
a perfect, fair and reasonable employee evaluation mechanism, which is divided into the three stages ofgoal setting, interim performance review and feedback, and final performance evaluation, so as toeffectively improve employees' work efficiency and fully implement the performance management
system. Through regular employee performance evaluation, the Bank hopes to assist supervisors intimely communicating performance objectives and providing necessary communication and guidance toemployees, so as to establish employees' connection and consensus on personal goals andorganizational mission and vision. In 2021, the employees to whom the performance appraisal systemapplies participated in the performance appraisal, accounting for 98% of all employees. The rest who did
not participate in the performance appraisal are employees who have been on the job for less than threemonths in the current year, and the probation appraisal applied to them.
Three Stages of EnTie Bank’s Employee Performance Evaluation

Online Learning Platform
In order to provide diverse and fast training resources and learning, the Bank continues to promote thedigitization and optimization of physical courses with the online learning platform "EnTie e-Learning
Network" to improve staff learning opportunities and efficiency. In 2021, under the impact of COVID-19,
the Bank, in compliance with the competent authority's response policy of statutory training, and on thepremise of protecting the health and safety of employees and reducing clustering, transformed physicaltraining into online training or live broadcast based on the principle of continuous learning, and continued
to strengthen the professional knowledge learning of the staff. In 2021, online courses accounted for 90%
of bank employees' learning methods.

Goal setting : The supervisor and employee together review the past performance and set future goals andperformance achievement indicators.
Interim performance review and feedback : The supervisor assists in coaching the employee, jointly review
the achievement of goals and formulate performance improvement plans.
Final performance evaluation : Refer to the mid year or quarterly evaluation results, and conduct the overall
performance evaluation of all employees for the whole year.

In addition, EnTie Bank has developed a rotation training plan to carry out job rotation and intra-unit
rotation according to the wishes of employees, so as to help employees understand the Banks operationin an all-round way, strengthen business experience and cultivate interdisciplinary professionals, so as toimplement the career training plan for key talents.

89

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Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

AppendixSocial Participation
While pursuing profitable growth, EnTie Bank has actively invested in social welfare, taking the value
concept of love and sharing as the starting point, in the hope of becoming a public welfare platform. EnTie
Bank hopes to cooperate with interested parties to practice social participation and care, meet the needsof local communities through the resources of branches, the interpersonal networks of employees andthe enthusiastic participation of customers, fulfill EnTie's corporate social responsibility, and create thebrand value recognized by employees, customers and the society.
Over the years, EnTie Bank's public welfare activities have focused on caring, assisting and supportingchildren and disadvantaged groups in response to the UN Sustainable Development Goals SDG1 toeliminate poverty and SDG4 Quality Education. In the past two years, the COVID-19 pandemic has
caused a major impact and threat to the world, highlighting the inequality between the rich and the poorand the uneven distribution of resources in the society as a whole. EnTie Bank cooperates with suppliers
and public welfare groups to organize diversified public welfare activities and products and services,hoping to improve the learning environment and family life of rural disadvantaged children, promote social
harmony, and add to our society a little more love and warmth.

2021"Children Have a Future"

The public welfare micro film "Children Have a Future" premiered on April 8, 2021. It records thehelplessness and resignation faced by children from disadvantaged families in Taitung in their daily workand rest, as well as the original intention and persistence of the Children's Bookstore. At the same time, it
is interspersed with wonderful clips of the concert to allow the public to understand the importance andurgency of diversified education and community turnover.

Through cooperation with suppliers and public welfare groups, EnTie Bank launched a variety of publicwelfare products and services, and called on customers to respond from the aspects of feedback,donation and activity, so as to help public welfare groups operate sustainably, care for every corner of thecommunity, and create a warmer and better Taiwan society. As a small and medium-sized bank, EnTie
Bank has a consistent and clear understanding of corporate social responsibility, although it does nothave the aid from the charity and public welfare foundation. It is the bounden responsibility and missionof EnTie people to participate in social welfare.
Village safety box
On the Ghost Festival in 2021, EnTie Bank cooperated with the supplier X4GPS
to conduct the "village safety box" public welfare activity. EnTie Bank donated255 village safety boxes containing necessary supplies and food for people's
livelihood, which were delivered to the village heads by the branch managers andtransferred to disadvantaged families, so as to deepen the interactive relationshipand network between the branches and the surrounding community neighbors,and ensure that disadvantaged groups receive due care.

Public welfare deposit
In 1999, EnTie Bank launched the first "public welfare deposit", in the industry
which provides customers with higher interest than ordinary deposits, and thebalance is donated to public welfare organizations designated by customers.
Currently there are 27 public welfare groups participating in the public welfare
deposit program. According to the organizational mission, it can be divided into
the five types of maternal and child care, medical assistance, care for the elderly,care for the physically and mentally disabled and disadvantaged, andenvironmental protection. The members include well-known groups such as
United Way of Taiwan, Children Are Us Foundation, World Vision International
and Taiwan Fund for Children and Families.

Credit card charity donation
EnTie Bank cooperates with Eden Social Welfare Foundation, Waker Group andGenesis Social Welfare Foundation to plan credit card charity donation activities,
and cooperates with United Way of Taiwan to exchange bonus points for
donations, so as to contribute to public welfare activities.
"Children Have a Future"
micro film
The public welfare micro film
"Children Have a Future"

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"Children Have Hopes" Series of Public
Welfare Activities

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

2020"Children Have a Future"

2019"Children Have Love"
EnTie Bank joined hands with Children Are Us
Foundation, and gave full play to the efforts of the2018

Prefacebranches to arrange the staff and customers tovisit the Children Are Us Workshop in person, and"Children Have Us,
Christmas Wishing Tree"

had a cookie classroom experience with the kids.

EnTie Bank worked together to raise
Christmas gifts for disadvantaged
children, and fulfilled children's wisheswith the warm response of customers,
employees and community neighborsof bank branches. On Thanksgiving
Day, Christmas trees were also
simultaneously set up in 50 branches
across Taiwan and the head office,with children's wishes hung on thetrees.
聖誕許願樹lunch boxes with the kids of Children Are Us

The volunteers of the Bank also sent charity

In 2020, EnTie Bank cooperated with Taitung public welfare group "Children's Bookstore", whosebusiness philosophy of caring for the education of disadvantaged children coincided with the focus of
EnTie’s public welfare, and jointly held the autumn concert of "Children Have a Future" and a charity
bazaar, and shot public welfare micro films. A total of NT$2.33 million of charity donation was raised
during the two-day event, and "Children's Bookstore" has also become one of the charity partners of
EnTie Bank's public welfare deposit program.

Foundation to Fulian Elementary School in New

In September 2020, EnTie Bank invited BNP Paribas
Cardif, Union Insurance Company and Taipei 101 toondjointly hold the "Children Have a Future 101 Concert", andstinvited Taitung children to play on Taiwan's mostTaipei City to spend a great day with the children.

Achievement：15,836 charity lunch boxes wereraised, with a total donation of nearly NT$2.37 million.

2017"Children Have Hope"Children Have a Future 101 Concert
EnTie Bank and United Way of Taiwan
launched a series of public welfare

Achievement：1,650
disadvantaged children's
wishes were successfully
gathered, with a total donationof nearly NT$2.85 million.

activities to call on customers and the staff
to freely respond to the "one-day spending
donation" activity, to easily respond to publicwelfare by saving the extra spending in one
day's life. EnTie Bank also held the music flash
public welfare activity and shot public welfare
micro films to light up the 101 Building with love andenthusiasm, and advocated charity donations to help

Charity Bazaar

disadvantaged children in Miaoli, Nantou, Kaohsiung, Pingtung

Jun-Lang Chen
(Father Chen)

EnTie Bank also held a two-day charity bazaar on thesame days of the concert. At the bazaar, set products ofChildren's Bookstore were sold on-site, and there werethe concept display wall of Jun-Lang Chen (Father
Chen), the late founder of the bookstore, and the small
donation area. The public was invited to participate in theactivity to help the bookstore continue to promote rural
education and services, and help Taitung children live
independently.
EnTie Bank's 50 branches in Taiwan responded to the publicwelfare activities in unison. During the one month period, they set
up activity signs and DMs, publicized the products of Children's
Bookstore, and invited customers to turn their love and care into
action by supporting donations and ordering he products ofChildren's Bookstore.

and east Hualien.

Achievement：The public welfare micro film has beenviewed by more than 50,000 people, with a total charity
donation of more than NT$2.2 million, supporting 48
disadvantaged children's service projects and helping
more than 11,000 children in Taiwan.

representative landmark, so that more people can knowChildren's Bookstore, support the education of ruralchildren, and also commemorate the spirit and effortsof Jun-Lang Chen (Father Chen), the late founder ofthe bookstore.

Donations and merchandise orders

91

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Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

Appendix
GRI Standards Index P.93

SASB Standards Index P.97

Independent Limited Assurance Report P.98

92

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

2021

GRI Standards Index
GRI Standards

Index

Indicator chapter / description

Page

General Disclosures (core)

GRI 102
General Disclosures102-1 Name of the Organization

Preface - About This Report04

102-2 Activities, brands, products and services

About EnTie - Company Profile09

102-3 Location of headquarters

Preface - About This Report04

102-4 Location of operations

About EnTie - Company Profile

09

102-5 Ownership and legal form

Preface - About This Report04

102-6 Markets served

About EnTie - Company Profile09

102-7 Organization scale

About EnTie - Company Profile09

102-8 Information on employees and other workers

Social Care – Diverse Talent Recruitment

76

102-9 Supply chain

Green Environment - Supplier Management59102-10 Significant changes to the organization and its supply chain

Green Environment - Supplier Management59102-11 Precautionary principle or approach

Sustainable governance - Risk management33

102-12 External initiatives

About EnTie - Company Profile09

102-13 Membership of associations

About EnTie - Company Profile09

102-14 Statement of decision makers

Preface - Letter From the Chairman

05

102-16 Values, principles, standards and codes of conduct

About EnTie - Vision and Mission

10

Sustainable Governance - Corporate Governance and Ethical Corporate Management25

102-18 Governance structure

Sustainable Governance - Corporate Governance and Ethical Corporate Management25

102-24 Nomination and selecting the highest governance unit

Sustainable Governance - Corporate Governance and Ethical Corporate Management25

102-25 Conflicts of interest

Sustainable Governance - Corporate Governance and Ethical Corporate Management25

102-40 List of stakeholder groups

Sustainable Business Strategy - Stakeholder Communication

16

102-41 Collective bargaining agreements

Social Care - Employee Welfare and Health81102-42 Identifying and selecting stakeholders

Sustainable Business Strategy - Stakeholder Communication

16

102-43 Approach to stakeholder engagement

Sustainable Business Strategy - Stakeholder Communication

16

102-44 Key topics and concerns raised

Sustainable Business Strategy - Analysis of Material Issues

18102-45 Entities included in the consolidated financial statements

Preface - About This Report04

102-46 Defining report content and topic boundaries

Sustainable Business Strategy - Analysis of Material Issues

18102-47 List of material topics

Sustainable Business Strategy - Analysis of Material Issues

1893Preface

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Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

2021

GRI Standards

GRI 102
General Disclosures

Index

Indicator chapter / descriptionPage102-48 Restatements of information

Preface - About This Report04

102-49 Changes in reporting

Sustainable Business Strategy - Analysis of Material Issues

18102-50 Reporting period

Preface - About This Report04

102-51 Date of most recent report

Preface - About This Report04

102-52 Reporting cycle

Preface - About This Report04

102-53 Contact point for questions regarding the report

Preface - About This Report04

102-54 Claims of reporting in accordance with the GRI Standards

Preface - About This Report04

102-55 GRI content index

Appendix - GRI Standards Index93

102-56 External assurance

Appendix - Independent Limited Assurance Report98

GRI 103 Management Approach

GRI 103
Management Approach103-1 Explanation of the material topic and its boundary

Sustainable Business Strategy - Analysis of Material Issues

18103-2 The Management approach and its components

Please refer to the content of each topic-

103-3 Evaluation of the management approach

Please refer to the content of each topic-

GRI 200 Economic Disclosures
201-1 Direct economic value generated and distributed by the organization
GRI 201
Economic
PerformanceGRI 202
Market PresenceGRI 203
Indirect
Economic Impact

GRI 204
Procurement Practices

About EnTie - Operational and Financial Performance11

For complete financial information, please refer to 2021 annual report or 2021 Financial Statements
201-2 Financial implications and other risks and opportunities due to climate change

Green Environment - Task Force on Climate-related Financial Disclosures (TCFD)

64

201-3 Defined benefit plan obligations and other retirement plans

Social Care - Employee Welfare and Health81

201-4 Financial assistance received from government

About EnTie - Operational and Financial Performance11

202-1 Ratios of standard entry level wage by gender compared to local minimum wage

Social Care - Diverse Talent Recruitment76

202-2 Proportion of senior management hired from local community

Social Care - Diverse Talent Recruitment76

203-1 Infrastructure investments and services supported

Green Environment - Sustainable Finance / Products and Services – Financial Inclusion

54/39

203-2 Significant indirect economic Impacts

204-1 Proportion of spending on local suppliers

Social Care - Social Participation

90

Green Environment - Sustainable Finance / Products and services - Financial Inclusion

54/39

Social Care - Social Participation

90

Green Environment - Supplier Management

59

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GRI Standards

GRI 205
Anti-corruption
GRI 206:
Anti-competitive
Behavior

Index

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

Indicator chapter / description

205-1 Operations assessed for risks related to corruption

Sustainable Governance - Corporate Governance and Ethical Corporate Management25

205-2 Communication and training about anti-corruption policies and procedures

Sustainable Governance - Corporate Governance and Ethical Corporate Management25

205-3 Confirmed incidents of corruption and actions taken

No such situation-

206-1 Legal actions for anti-competitive behavior, antitrust and monopoly behaviors

In 2021, there was no violation of laws or regulations concerning anti-competition, antitrust or-

monopoly behaviors
GRI 300 Environmental Disclosures

GRI 302
EnergyGRI 303
Water and Effluents(2018)GRI 305
Emissions
GRI 307
Environmental
Compliance
GRI 308
Supplier
Environmental
Assessment

Page

08

302-1 Energy consumption within the organization

Green Environment – Environmental Sustainability

61

302-4 Reduction of energy consumption

Green Environment – Environmental Sustainability

61

303-1 Interactions with water as a shared resource

Green Environment – Environmental Sustainability

61

303-2 Management of water discharge-related impacts

Green Environment – Environmental Sustainability

61

303-3 Water withdrawal

Green Environment – Environmental Sustainability

61

305-1 Direct (Scope 1) GHG emissions

Green Environment – Environmental Sustainability

61

305-2 Energy indirect (Scope 2) GHG emissions

Green Environment – Environmental Sustainability

61

307-1 Non-compliance with environmental laws and regulations

No such situation-

308-1 New suppliers that were screened using environmental criteria

Green Environment - Supplier Management59205-2 Communication and training about anti-corruption policies and procedures
GRI 400 Social Disclosures

GRI 401
Labor Relations

GRI 403
Occupational Healthand Safety(2018)

401-1 New employee hires and employee turnoverSocial Care - Diverse Talent Recruitment

76

401-2 Benefits provided to full-time employees that are not provided to temporary or part-time

Social Care - Employee Welfare and Health81

401-3 Parental leave

Social Care - Employee Welfare and Health81403-1 Occupational health and safety management system

Social Care - Employee Welfare and Health81403-2 Hazard identification, risk assessment, and incident investigation

Social Care - Employee Welfare and Health81403-3 Occupational health services

Social Care - Employee Welfare and Health81403-4 Worker participation, consultation, and communication on occupational health and safety

Social Care - Employee Welfare and Health81

employees

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GRI Standards

GRI 403
Occupational Healthand Safety(2018)GRI 404
Training and
Education

Index

Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

Indicator chapter / descriptionPage403-5 Worker training on occupational health and safety

Social Care - Employee Welfare and Health81403-6 Promotion of worker healthSocial Care - Employee Welfare and Health81403-7 Prevention and mitigation of occupational health and safety impacts directly linked bySocial Care - Employee Welfare and Health81403-9 Work-related injuries

Social Care - Employee Welfare and Health81404-1 Average hours of training per year per employee

Social Care - Employee Training and Development

87404-2 Programs for upgrading employee skills and transition assistance programs

Social Care - Employee Training and Development

87404-3 Percentage of employees receiving regular performance and career development

Social Care - Employee Training and Development

87

business relationships

reviews
GRI 405
Diversity andEqual Opportunity

405-1 Diversity of governance bodies and employees

Social Care - Diverse Talent Recruitment

76

405-2 Ratio of basic salary and remuneration of women to men

Social Care - Diverse Talent Recruitment

76

GRI 406
Non-discrimination

406-1 Incidents of discrimination and corrective actions taken

No such situation-

GRI 413
Local Communities

413-1 Operations with local community engagement, impact assessments, and development

Social Care - Social Participation

90

GRI 414
Supplier Social
Assessment

414-1 New suppliers that were screened using social criteria

Green Environment - Supplier Management

59

GRI 417
Marketing andLabeling

417-1 Requirements for product and service information and labeling

Product Service - Customer Service and Protection

47417-2 Incidents of non-compliance concerning product and service information and labelingNo such situation-

417-3 Incidents of non-compliance concerning marketing communications

No such situation-

418-1 Substantiated complaints concerning breaches of customer privacy and losses ofNo such situation-

Sustainable Governance - Legal Compliance, Internal Control and Internal Audit

30

GRI 418
Customer Privacy
GRI 419
Socioeconomic
Complianceprograms

customer data419-1 Non-compliance with laws and regulations in the social and economic area

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About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

Sustainability Accounting Standards Board (SASB) Standards Index
Commercial Bank
Topic

Integration of
ESG factors in
Credit Risk Analysis
Business
ethicsData Security

Index

Indicator chapter / description

Page

FN-CB-410a.1 Disclosure of the credit exposure of industrial and commercial loans by industry

For details, please refer to the notes to the financial statements in the EnTie 2021 annual report-

FN-CB-410a.2 Description of the method of incorporating environmental, social and governanceGreen Environment - Sustainable Finance54

FN-CB-510a.1 Monetary loss caused by violation of law or entering legal proceedings

Sustainable Governance - Legal Compliance, Internal Control and Internal Audit

30

FN-CB-510a.2 Whistleblower policy and procedure description

Sustainable Governance - Corporate Governance and Ethical Corporate Management

25

FN-CB-230a.1 Current situation of data security management

Sustainable Governance - Information Security

36

FN-CB-230a.2 Description of methods to identify and deal with asset security risks

Sustainable Governance - Information Security

36

FN-CB-240a.1 Number and balance of loans for promoting the development of small

Products and Services - Financial Inclusion

39

Products and Services - Financial Inclusion

39

FN-CB-240a.3 Number of cost free checking accounts for financially disadvantaged

Products and Services - Financial Inclusion

39

FN-CB-240a.4 Number of participants in activities related to improving financial literacy held for

Products and Services - Financial Inclusion

39

FN-CB-550a.1 Global systemically important bank (G-SIB) score

Not applicable-

FN-CB-550a.2 Stress test results and capital adequacy planning and description of

Sustainable Governance - Risk Management

33(ESG) aspects into credit analysis

enterprises and communities
Financial Inclusion&
Capacity Building

FN-CB-240a.2. Number and amount of overdue loans and collections for promoting thedevelopment of small enterprises and communities

financially disadvantaged groups
Systemic Risk
Management

strategic activities

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Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

Social Care

Appendix

Independent Limited Assurance Report

98

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Preface

About EnTie

Sustainable Business
Strategy

Sustainable Governance

Products and Services

Green Environment

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Appendix

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Sustainable Governance

Products and Services

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Appendix

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Appendix

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Green Environment

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Appendix102