E.SUN FHCSUSTAINABILITY REPORT 2022

Better E.SUN, Brighter Taiwan

About the Report

GRI：2-1、2-2、2-3、2-4、2-5

E.SUNReporting Initiative (GRI) Standards Core Option, U.N. Sustainable Development Goals (SDGs), GRI Financial Services Sector Supplement, Corporate Social

Financial Holding Co., Ltd. (E.SUN FHC) appreciates your attention to our 12th Sustainability report. This report has been prepared in accordance with the Global

Responsibility Best Practice Principles for TWSE / TPEx Listed Companies, ISO 26000 guidance on social responsibility, UN Global Compact, Industry Standards issued by
Sustainability Accounting Standards Board (including Commercial Bank, Consumer Finance, Investment Banking & Brokerage, Mortgage Finance, Asset Management), and theRules Governing the Preparation and Filing of Corporate Social Responsibility Reports by TWSE Listed Companies. E.SUN FHC published Sustainability report in both English andChinese version every year, and the report can be downloaded from the "ESG" section of E.SUN FHC ofﬁcial website. Through publication of this Sustainability report, we hope
to communicate the ideas and practices that E.SUN has adopted towards achieving sustainability with our stakeholders. We hope to learn and grow together, and bring positiveinﬂuence to the society.

Period of report

The report is published every year since 2011. This year's report covers performance in economic, social and environmental indicators in 2022 (from January 1 to December 31,2022). In order to present a more comprehensive picture of various projects and campaigns undertaken by E.SUN FHC, the report also discloses activities that occurred prior to
January 1, 2022 and after December 31, 2022. The last version was published in June 2022.

Scope of report

The scope of disclosure focuses on operating activities and services of E.SUN FHC and its subsidiaries (E.SUN Bank, E.SUN Securities, and E.SUN Venture Capital, E.SUN
Investment Consulting) in Taiwan, which accounts for 99.8% (not including E.SUN Bank's subsidiary, Bank Pro) of E.SUN FHC's net revenue. Statistics in this CSR report havebeen presented in a manner consistent with common international standards, and cover the performance of some of E.SUN's overseas branches. Disclosures on social welfare andcharity cover the two non-profit foundations (namely E.SUN Volunteer and Social Welfare Foundation and E.SUN Culture and Eduacation Foundation) and subsidiaries; whereas
disclosures concerning environmental protection (e.g. use of water, electricity, petrol etc) cover E.SUN's Taipei Headquarter Building, Second Headquarter Buidling, Summit
Campus, Hope Campus, Technology Building, Boai Building, and overseas and domestic branches. Any special meanings pertaining to the above quantitative indicators are
explained in separate footnotes.

Reporting Basis

Standard of Information

Organization
The Global Reporting Initiative, GRI

Taiwan Stock Exchange, TWSE

United Nations, UN

Principle

Data category

GRI Standards 2021
Sustainability
data

G4 Financial Services Sector Disclosure
Corporate Social Responsibility Best Practice Principles
for TWSE/GTSM Listed Companies
Rules Governing the Preparation and Filing of Corporate
Social Responsibility Reports by TWSE Listed Companies

Financial data

Sustainable Development Goals, SDGs

Certifying Organization

AA1000 Assurance Standards v3 (Type 2 high-level assurance)

BSI Taiwan

Statement of Assurance Engagements Standards No. 1,"Assurance Engagements other than Audits or Reviews ofHistorical Financial Information" in the Republic of China

PwC Taiwan

Annual financial report

Deloitte

ISO 14064-1：2018 Greenhouse Gas Inventory

Summary of Global Compact Disclosure

Environmental
dataInternational Organization for Standardization, ISO

ISO 26000 Social Responsibility Guidance

SASB (Sustainability Accounting Standards Board)

Commercial bank, Consumer Finance, Mortgage Finance, Asset Management

TCFD

Recommendations of the Task Force on Climate related Financial Disclosures

E.SUN Financial Holding Co., Ltd. | Ofﬁce of CSO
No. 115, Section 3, Minsheng East Road, Taipei City
．TEL：(02)2175-1313．E-MAIL：esg@esunfhc.com．ESG website：https://www.esunfhc.com/en/esg/overview/performance
Feedback

Standard

ISO 14046：2014 Organizational Water Inventory

SGS Taiwan
PwC Taiwan

ISAE 3000 & 3410：Carbon emissions of lending and investment
portfolio

Note: This report is based on the principles of accuracy, balance, clarity, comparability, reliability andtimeliness of the GRI Sustainability Reporting Guidelines. The source is provided by E.SUN FHC and its
subsidiaries, and all content is approved by the Sustainability Committee and sernior management.

3

Table of Contents
Message from the Chairman and the President
Honors and Recognitions

1 Our Story
1.1 Vision
1.2 Business Performance
1.3 Sustainable Governance
1.4 Material Issues

005
007

012
013
017
018
020

2.1 Climate and Environment Governance Structure

036

038

4 Building Resilience

2.2 Climate Related Risks and Opportunities

040

4.2 Code of Conduct and Ethic096

2.3 Opportunity Identification

041

4.3 Risk Management099

2.4 Risk Identification

044

4.4 Emerging risks

101

2.5 E.SUN Carbon Emissions Structure053

4.5 Anti-Money Laundering and Combating

105

2 Journey to Net Zero

4.1 Corporate Governance

088

089

the Financing of Terrorism (AML/CFT)3 Banking for Better056

3.2 Inclusive Finance071

3.1 Sustainable Finance057

4.6 Business Continuity Plan

109

4.7 Information Security and Personal

111

Information Protection Management

3.3 Treating Customers Fairly and Customer Experience 078

4.8 Tax Governance115

3.4 FinTech and Innovation

4.9 Human Rights Protection

118

083

5 Our People120

5.1 Talent Cultivation and Development

122

5.2 Talent Attraction and Retention

131

5.3 Employee Care and Friendly Workplace

136

Environment
6 Seeking Common Good

6.1 Natural Environment and Biodiversity

Appendix
Appendix 1 - GRI Content Index

169

Appendix 9 - SDGs Indicators

179

Appendix 2 - Index of GRI (Global Reporting Initiative) G4 Indicators of174

Appendix 10 - TCFD Disclosure Recommendations

182

Appendix 11 - 2021 Structure of Financed Emissions

182

Financial Service Sector
Appendix 3 - Material Issues

175

Appendix 12 - Human Resource Management Indicators

184

Appendix 4 - Progress of Commitments under the Sustainable176

Appendix 13 - Sustainable Operating Environment Indicators

191

Appendix 14 - Economic value distributed indicators

193

Appendix 15 - Sustainability Accounting Standards Board

194

Finance Pioneers
Appendix 5 - Corporate Social Responsibility Best Practice Principles

177(SASB) Index

for TWSE/GTSM Listed Companies
Appendix 6 - Taiwan Stock Exchange Corporation Rules Governing the177

Appendix 16 - Independent Assurance Opinion Statement

196

Appendix 17 - Independent Auditors' Limited Assurance Report 197

Preparation and Filing of Sustainability Reports by TWSE
Listed Companies
Appendix 7 - ISO26000 Index

178

Appendix 8 - UN Global Compact Index

178

Appendix 18 - Greenhouse Gas Veriﬁcation Statement

200

Appendix 19 - Carbon Neutralization Certiﬁcate

201

4

144

145

Preservation
6.2 Social Inclusion

152

6.3 Sustainable Operating Environment

162

Our Story

Journey to Net Zero

Banking for Better

Building Resilience

Our People

Seeking for Common Good

Message from the Chairman and the President
GRI：2-22

Eternal Mountain, Sustainable Business Development

Named after Jade Mountain, E.SUN not only focuses on the financial business but also makes aneternal commitment to this land. We embrace the vision of becoming a 'world-class corporate citizen'
and strive to be the most respected and effective enterprise, pursuing a balanced development ineconomy, society, and environment. We also join hands with like-minded corporate partners to work
together for a just and sustainable society and environment.

From Commitment to
Implementation

Chairman, E.SUN FHCPresident, E.SUN FHC

The outbreak of the Russo-Ukrainian war in
2022 led to soaring global energy prices andinflation, testing the wisdom and determinationof all parties in pursuing balanced ESG
development. The Egypt-hosted United Nations
Climate Conference COP27 set the theme of'From Commitment to Implementation', with theslogan 'Together for implementation' visible infour locations, reflecting the phenomenon of
empty promises without corresponding actions.
Since setting the goal of becoming a net-zeroemissions bank by 2050, E.SUN has been
actively promoting various carbon reduction
initiatives, from the management team's
personal commitment to the implementation indaily work. We are gradually realizing our netzero transformation goals in every aspect of theenterprise. Compared to the base year (2020),
we achieved a 10% reduction in Scope 1&2
carbon emissions in 2022. Introduced carbon

5

pricing in investment and lending businesses,
and integrated TCFD & TNFD frameworks
to publish climate and natural environment
reports, receiving high recognition from the
TNFD organization and making steady progress
towards our ambitious goals.
A journey of a thousand miles begins with asingle step. The key to fulfilling our commitments
lies in execution. E.SUN team is committed toadvancing towards the three major mountainsof 'integrated performance, corporate social
responsibility, and sustainable development'. In
the process of implementing our goals, we also
continuously refine ourselves. In addition to netzero targets, E.SUN also responds to global
biodiversity targets, referring to Taiwan's 'forest
bird species' and 'agricultural land bird species'
national indicators, striving to promote natural
growth recovery before 2030 and realizing thevision of a beautiful homeland.

Our Story

Journey to Net Zero

People-oriented,
Sowing the Seeds of Hope

In 2023, E.SUN invited Amy Edmondson, a topranked global management thinker from Thinkers50, tocultivate more leaders with empathy, understanding,and curiosity, encouraging employees to speak
up about potential issues and create a resilientorganization that can overcome challenges in achanging environment.
Empathy, understanding, and curiosity are also theelements that E.SUN values in its people-oriented
approach. For example, in promoting inclusive finance,
we first understand the pain points of vulnerable
groups such as the elderly, rural areas, and lowincome populations in financial services. We actively
develop innovative finance and collaborate with crossindustry partners to provide humanized financial
services. Specific actions include our proactive
care for the disadvantaged, sharing microinsurance
protection concepts and assisting the public ininsurance investments in rural areas, providing basic
personal insurance for economically disadvantaged
and specific ethnic groups; and cooperating withmedical institutions to establish dementia-specific andsimulation education training, enhancing empathy andunderstanding of dementia patients and providing
empathetic financial services, realizing the ideal ofinclusive finance.
To sow more seeds of hope and sustainable energy,
E.SUN has integrated ESG finance practices into theeducation and training of its internal staff at all levels.
We have also pioneered the Sustainable FinanceManagement Certificate program, inviting external
professional lecturers to conduct 40 hours of on-thejob training in sustainable finance. Externally, we
provide practical experience sharing, helping students

Banking for Better

Building Resiliencefrom over 5 universities and colleges gain a better
understanding of corporate sustainability challenges
and practical experience. We firmly believe that the
future financial talent not only needs to be proficient infinancial expertise but also equipped with sustainable
literacy to lead the financial industry with a long-term
perspective and a more responsible civic spirit that
influences industrial development.

Financial Well-being,
Sustainable Future

Since ancient times, finance has played a crucialrole in the development of civilization, as it enables
the transfer of resources across time, the poolingof resources, and the diversification of risks. E.SUN
firmly believes that finance will be a key driver ofglobal sustainable development. Therefore, E.SUN iscommitted to helping businesses manage emerging
risks and has called on over 130 companies to join
the sustainable initiative for two consecutive years,
jointly addressing international carbon taxes, green
supply chain requirements, and implementing various
ESG actions. We hope that more businesses will
actively participate in the movement, just as President
Tsai encouraged, 'Let us work together to turn thechallenges of transformation into opportunities,
allowing our industries to have better development andstronger competitiveness.'Thanks to past efforts, E.SUN has joined theSustainable Finance Frontiers Alliance under the
Financial Supervisory Commission's call, pledging totake more proactive actions on five major issues: green
procurement, investment and financing agreements,
information disclosure, assistance and promotion,and international docking. E.SUN also serves as theconvener of the policy and guidance group in the

6

Our People

Seeking for Common Good

Financial Zero Emissions Working Platform, assisting
Taiwan's financial industry in examining the financial
carbon emissions status, setting zero-emission targets,and promoting more effective corporate attention
to sustainability issues and accelerating capital
investment in transformation projects through the
Financial Zero Emissions Platform.

Offering the World a Better Taiwan
Offering Asia a Better E.SUN

As the President mentioned in the Double Ten Day
speech, 'Offering the World a Better Taiwan' can beachieved through self-strengthening and international
cooperation, and can lead to regional peace andstability. 'Offering Asia a Better E.SUN' aims toconnect more businesses through E.SUN's efforts togradually become a distinctive benchmark enterprisein Asia while enhancing the sustainable industrial
competitiveness of Taiwan's small and medium-sizedenterprises, ultimately making Taiwan more prosperous
and powerful.
For others, it might be a great dream for a single
enterprise to help the whole country become more
prosperous and powerful. However, E.SUN was
founded with the ambition to become a world-classbank, guiding generations of E.SUN members likethe North Star, filling us with passion and hope, andgathering more people to pursue this dream bravely.
Now we are sharing this great dream with moreenterprises, looking forward to having more likeminded partners join us, and striving together for our
ideal homeland.

Honors and Recognitions

Economy． Total assets exceeded NT$3.4 trillion． Market value ranks in the top 20 of all listedcompanies in Taiwan． S&P ratings for subsidiary E.SUN Bank havebeen improved to A / stable． Ranked 1st in SME lending for 16 years in a
row among private sector banks

Environmental

Social． The first financial institution in Taiwan topass the target review of SBT． Engaging with 133 outstanding enterprisesin Taiwan to publicly support sustainability
actions． Ranked 1st in amount of sustainability bonds
issued by financial institutions

7． Established 173 E.SUN Libraries． Scholarship to a total of 244 key talents
ineach field for 18 consecutive years． E.SUN Academic Award establishedfor 12 years, with a total of 68 teachers
receiving the award

Overall
Performance

Financial
Innovation

Sustainable
Development

ForbesRanked 1st in Taiwan's
banking industry in the"World's Best Banks"(2022)

Finance Asia
The Best Bankin Taiwan（2022）

Asiamoney
Best SME Bankfor the 5th time（2014-2016、2018、2022）

Corporate
Governance Asia
Asia's Best CEO
for the 7th time（2015-2016、2018-2022）

Enterprise Asia
Responsible Business
Leadership for the 5thconsecutive year（2018-2022）

IDC
Won theFuture EnterpriseAward and the Special
Award for Digital
Resiliency

The Asian Banker
Won the Best Big Data,
Artificial Intelligence,and Machine Learning
Project in Taiwan

The Asset
Best Digital
Wallet in Taiwan

Wealth Magazine
Gold Award for Best
FinTech Bank in the
FinTech Innovative
Application Award（2016-2022）

Commercial Times
Best Nursing Trust
Innovation Award
Best Trust Commodity
Integration Innovation Award

DJSI• Selected as
constituent stock of DJSIfor 9 consecutive years• Ranked 1% inBank industry(2022)MSCI ESG Ratings
Upgrading to AAA（2022）

Sustainalytics ESG
Risk Ratings
Ranked top 1%
among global
banking industry（2022）

FTSE4Good
Listed in Emerging Index
for 6 consecutive year（2017-2022）

CommonWealthmagazine
Ranked 1st in Large
enterprise of Corporate
Citizen Award（2022）

8

S&M EnterpriseCredit Guarantee Fundof Taiwan
Ranked 1st in the
Financial Institution
Division of the Credit
Guarantee Golden
Quality Award for 17
consecutive years（2006-2022）

TCSA
Ranked 1stamong financial
institutions in Top 10
Exemplary Enterprise of
Taiwan Award for
8 consecutive years（2015-2022）

HR Asia
Most Caring
Companies Award forconsecutive year
（2020-2022）

From Pledge to Action: Together for Implementation

E.SUN Attends COP27, Speaking Up for Taiwan
Combining climate action with finance to build a more resilient social system andlet the world see Taiwan.
"Taiwan Can Help",
a key player in climate solutions
In 2022, COP27 was held in Sharm ElSheikh, Egypt. E.SUN was invited to speakat the largest side event, the World Climate
Summit, on the topic of "New Climate
Finance in Taiwan." E.SUN shared how it
promoted the net-zero transition throughfinancing and investing.
Joseph Huang, Chairman of E.SUN Bank,
demonstrated Mt. Jade, introducing it tothe on-site and online attendees as "Mt.
Jade - the highest mountain in Taiwan."In his speech, he mentioned that due to
Taiwan's geological conditions, high-techindustry concentration, and independent
power grid, energy transition has becomea huge challenge for Taiwan to achieve
net zero by 2050. However, benefitingfrom Taiwan's abundant wind energy
resources in the Taiwan Strait, the close
cooperation between the government andthe private sector in vigorously developing
offshore wind power, rapidly constructing
diverse renewable energy sources suchas solar power and fishery and electricity
symbiosis system. They strive to balanceenvironmental protection and energy
demand, and these experiences can serve
as references for other island nations. E.SUN
believes that capital and markets can be9

powerful, and looks forward to Taiwaneseenterprises playing a greater role on theinternational stage, leveraging technology,
capital, and collaboration. "Taiwan Can
Help" is not just a slogan; we can provide
concrete and effective assistance, andTaiwan can become an integral part of theworld's climate solutions!

New deﬁnition of sustainable
development
Sustainability and climate have become
the new cross-border language, and COP
is an important platform for cross-bordercooperation. Along with representatives,
experts, scholars, and like-minded
individuals from various countries andregions, E.SUN will exchange new climate
ideas and continue to learn from them.
We want to use COP as a platform with
global attention and influence, to empower
Taiwanese enterprises, and let the importantbut often overlooked voices be heard,
highlighting key issues and sparking
discussions. We want to inspire more newideas, open up more dialogues, and let theworld see E.SUN, see the beauty, see thepotential in Taiwan.

Protecting the wealth bestowed upon us by nature

Protecting the wealth of our clients and the wealth of nature
Establishing biodiversity growth targets to achieve harmony between humans and nature
Taiwan, a beautiful treasure island, is home to 2.5% of
the world's species, making it 100 times the averageof all countries. Known as the 'Kingdom of Butterflies'
and the 'Island of Biodiversity,' Taiwan's diverse
geography and location at the intersection of tropicaland subtropical zones contribute to its rich biodiversity.
However, economic activities and climate change have
led to the gradual loss of biodiversity. Each species
is like a unique puzzle piece, and the loss of any one
piece can have potentially incalculable impacts.
In the past, we lacked research data on complex
ecosystems, but through the power of citizen science,
we have begun to accumulate some foundational
knowledge. Birds, with their rich diversity and positionat the top of the food chain, are highly sensitive toenvironmental changes and are ideal indicators oflarge-scale environmental changes. By observing
bird populations, we can better understand the pulseof Earth's ecosystems. E.SUN, in response to global
biodiversity targets, refers to the 'Taiwan Forest Bird
Index' and the 'Taiwan Farmland Bird Index' as national
indicators, striving to restore natural growth by 2030
and continuously exerting its financial influence,collaborating with stakeholders to achieve biodiversity
growth and harmony between humans and nature.

Collaborating with National Taiwan
University to restore millet
Protecting Taiwan's environmental ecology
and species conservation
E.SUN collaborates with National Taiwan University topromote the Millet Revitalization Project, successfully
reintroducing 28 native millet varieties from the UnitedStates Seed Bank to Taiwan and revitalizing them in
Xinyi Township, Nantou County. Millet is not only asymbol of indigenous culture but also a potential staple
crop with high adaptability to climate change. We
hope our efforts can ensure the sustainable growth ofmillet in Taiwan. E.SUN and National Taiwan University
have launched a three-year 'Millet Rooting Action
Plan,' establishing millet planting demonstration areas,organizing learning camps, and providing stable native
millet seeds and planting expertise to encourage
more local residents to participate in millet cultivation.
In 2022, a total of 536 square meters of millet were
harvested, showcasing the concrete implementationof coexistence between the economy and the naturalenvironment, as well as the social responsibility ofenterprises and universities.

10

To protect the history and cultural values of indigenous
people, the 'Millet Rooting Action' also collaborates
with local schools and indigenous culture experts,
integrating millet cultivation traditions, ancient stories,
and agricultural methods into school curricula, allowing
students to recognize and understand their ethnic
history and pass on the significance and value of millet
culture. In the Jioumei Elementary School area in Xinyi
Township, Nantou County, E.SUN also cooperates with
the National Taiwan University Experimental Forest andthe Forestry Bureau to rebuild the traditional Atayal
gathering place 'Tefuye,' which has been abandoned
for more than 70 years, and involves students in simple
construction work. Through the revival of traditionalarchitecture, agriculture, and cultural education, theproject aims to reconnect millet culture with the land,rooting it for generations to come.
The gradually disappearing
Alcippe morrisonia
Taiwan's unique species,
featuring a rich variety of bird
songs and distinctive white eyerings, is also the indigenous
people's 'fortune telling bird'

Look Abroad, Gazing into the Future

Connecting Governments and Enterprises through Finance,
Announcing Taiwan's Determination of "Net Zero by 2050"
Geling and amplifying impacts, leading Taiwan and industries towards net zero transition.
Taking the lead to join in ' Coalition of Movers and Shakers on
Sustainable Finance ', driving ﬁnancial transformation

To align with "Taiwan's Pathway to Net-Zero Emissions in 2050", the Financial
Supervisory Commission has selected ﬁve ﬁnancial holding companies, including
E.SUN Financial Holding, Yuanta Financial Holding, CTBC Financial Holding, First
Financial Holding, and Cathay Financial Holding, to form the ' Coalition of Movers
and Shakers on Sustainable Finance '. They have committed to taking moreproactive actions in green procurement, investment and ﬁnancing, information
disclosure, assistance and promotion, and international engagement. This will leadindustries and enterprises into the green supply chain and invest more resourcesin the development of net zero technologies. In addition, E.SUN also serves as theconvener of the 'Financial Industry Net Zero Promotion Task Force - Policy andGuidance Working Group', leading the establishment of the ' Financial Industry
Scope 3 Finance-related Carbon Emission Calculation Guide ', and the 'Carbon
Reduction Target Setting and Strategy Planning Guide', promoting Taiwan's entire
ﬁnancial industry to the net zero transformation.

A Call to Action for Sustainability:
100+ Companies Join in E.SUN's ESG Sustainable Initiative

E.SUN launched the ESG Sustainability Initiative in 2021. With 32 like-mindedbusiness partners signing the "Sustainable Development Advocacy", they
committed to taking practical actions in response to the urgent. In 2022, theinitiative expanded to include 101 companies in the sustainable initiative, including
industry leaders, quality enterprises, and hidden champions, with a total revenueof over NT$5.08 trillion dollars, accounting for more than 23% of Taiwan's GDP in
2021. The companies jointly announced their initiatives and set a target to reducecarbon emissions by at least 1.57 million metric tons by 2025, with 46 companies
pledging to achieve net zero emissions by 2050, demonstrating Taiwan's
determination to transition to net zero by 2050.

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Our Story

Journey to Net Zero

Banking for Better

Building Resilience

Our People

Seeking for Common GoodOur Story

E.SUN is dedicated to manage
business with integrity and climb
over three mountains of corporate
management: overall performance,
corporate social responsibility andsustainable development. In past
30 years, we keep improving our
ﬁnancial expertise and commit
to sustainable development by
following "3i", innovation, integration,
inﬂuence. To create a better society,we engage ourselves ﬁrst, with
employee's highly participation,
combine our ﬁnancial expertise andinvite external partners to join us.

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1.1 Vision
1.2 Business Performance
1.3 Sustainable Governance
1.4 Material Issues

Our Story

Journey to Net Zero

1.1 Vision GRI：2-1、2-6
The Highest Mountain; the Best Bank
In 1992, Chairman and founder Yung-Jen Huang brought
together a dedicated team of like-minded professionals
to create a "banker's bank", with the mission of "operating thebest bank" and establish a system managed by expertise.

Banking for Better

Building Resilience

Our People

The benchmark
in banking and service
The only bank operated by professional
managers with no links to the government
nor ties to family consortiums.
Improve the quality of customer services,and create a good customer experience

Taiwan's E.SUN, the World's E.SUN
Local development, Asia expansion,and international connection

Seeking for Common Good

E.SUN employees strive to be first-class citizens of
the world; E.SUN endeavors to become a first-rate
global corporate citizen
The volunteer spirit of "one simple act of love caninspire others to love"
Focus on our core business and formulate CSRminded business strategies

The fourth decade

Become the most distinctive andexemplary bank in Asia

 Business Philosophy

Named after the highest mountain in Taiwan, we are determined to be the best bank in
Taiwan. We aspire to be the best-performing, and most respected financial institution in
Taiwan. Since it was founded, E.SUN has made establishment of institutional systems,
cultivation of talents, and development of information technology the three pillars of
its quest for long-term sustainability, and upholds a business philosophy of "expertise,service, and business." Following continuous.
A Professional Team; Priceless TrustIn 1992, when the regulations in Taiwan were loosened to allow new banksfrom the private sector to be established, E.SUN was the only new bankthat was not affiliated with any financial group or the government. E.SUN's
foundations were built by a team of professional and diverse Board of
Directors and outstanding banking professionals, thus creating a true"banker's bank."
Warm Smiles and Memorable Services
We believe heartwarming service always begins with a smile. Additionally,
we listen to customers' needs and strive to exceed their expectations,hence giving customers an unparalleled banking experience. We hope toserve customers with impressive service and win their loyalty. The ultimate
goal is to make E.SUN the leading financial brand in Taiwan.

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Corporate Responsibility is Our Eternal Commitment
E.SUN engages in its stakeholders in a variety of ways. For employees,
E.SUN focuses on cultivating professional talent and building a happy
team. For customers, E.SUN provides outstanding quality services tobring more value for customers. For shareholders, E.SUN continues
to create outstanding overall performance through the bank's integrityand professionalism. For society, E.SUN makes positive impacts tothe community and environment, and moves towards sustainable
development.

Our Story

Journey to Net Zero

 Value Proposition"Pure as Jade, Sturdy as Mountain"

We offer warm and attentive services with sincerity, and havebecome customers' first choice in financial services. We servewith unwavering commitment the pursuit of business withintegrity and high quality, bringing our clients greater benefits
and values.
•High-quality financial service：
E.SUN invests in talent cultivation to provide services withhigh quality and professionalism to satisfy customers' needs.
•Friendly user experience：
E.SUN focuses on financial innovation and continues toinnovate in order to enhance customer experience.
•A trusted professional team：
We promise to bring value and earn the trust from customers.

Banking for Better

Building Resilience

Our People

E.SUN Financial Eco System

SASB：FN-AC-000.A、FN-AC-000.B、FN-CB-000.A、FN-MF-000.B

Deposit services

Loans

Number of
Total amount ofdeposit accounts
deposits (NT$M)(thousand)

5,597.6

1,394,976

Small Business

199.7

188,169

Corporate Customer

21.1
5,818.4

Personal

Total

Number of
Total amount ofdeposit accounts
deposits (NT$M)(thousand)
Personal

327.8

965,137

Small Business

19.3

104,164

1,228,613

Corporate Customer

7.0

637,600

2,811,758

Total

354.1

1,790,998

Note: Small business: deﬁned as corporate customers with registered capital below NT$10 million and loan business

E.SUN FHC overview
Establishment Date

2002-01-28

Headquarters

Taiwan (14F, No. 117 and 1F, No. 115, Sec. 3,
Minsheng E. Rd., Songshan District, Taipei City)

Paid-in Capital

NT$142,751 million

Total assets

NT$3,479,560 million

Number of employees

9,109 persons

Subsidiaries

E.SUN Commercial Bank Co., Ltd.
．Union Commercial Bank Plc.
．E.SUN Commercial Bank (China)．BankPro E-Service Technology Co., Ltd.
E.SUN Securities Co., Ltd.
．E.SUN Investment Consulting Co., Ltd.
E.SUN Ventures Ltd.
E.SUN Foundation
E.SUN Volunteers Social Welfare and Charity
Foundation

Industry

Financial

TWSE stock code

TWSE: 2884

Seeking for Common Good

Wealth management service

Foreign exchange business

Assets undermanagement(NT$B)

Average dailytransaction

Average daily
trading volume(NT$M)

15,197

161,737

Wealth Management

3,272

Assets in custody(NT$B)

711.2

Note: Assets managed is the total AuM of E.SUN FHC's. Assets
in custody is the amount held under the custody of E.SUN
Bank

Average daily numberof transactions

Note: Including foreign exchange and import and exporttransactions

Credit card business

Issued cards(million)

Credit Card

6.89

Note: In Taiwan and Cambodia market

14

Digital service

Transaction
amount (NT$B)

485.4

Digital Active
Customer

Digital Active
Digital transaction %Customer (thousand)

2,610

67%

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E.SUN FHC Value Chain

Competent authority, suppliers,and business partners
Government / Competentauthority

Customers and financialtransaction counterparties

E.SUN FHC
E.SUN Bank

Individual customer

Industrial associations

E.SUN Bank (China)

Corporate

Suppliers

Union Commercial Bank
PLC (UCB)

Financial industry

Securities investment trust
company/Insurance company

E.SUN Securities

Investee

Strategic partners

E.SUN Venture Capital

Investor

NGOs
Law firm/Accounting firm

Operational support
Operations supervision, product and service
supply, and business cooperation

Consulting company
Media

15

Financial transactions
Financial services provision,
investment, and lendingOur Story

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Hong Kong BranchTokyo Branch
Fukuoka Branch (in preparation)

Our People

Seeking for Common Good

Singapore BranchDong-Nai Branch

Los Angeles Branch

China subsidiary Hong Kong Branch
Honoi Representative OfficeTaiwanYangon Branch
Bangkok
Representative Office． The best international ﬁnancial
platform in greater China． Treasury and wealthmanagement center for
Taiwanese companies

Cambodian subsidiary

Dong-Nai Branch
Ho Chi Ming City
Representative Office
Singapore Branch． Capital management hub in
the Asia Paciﬁc． Asset management centerin Southeast Asia

． Complete deployment in northand south Vietnam, capturinglocal opportunities． The ﬁrst choice for southboundinvestment and Vietnam
offshore ﬁnancing

 Service network at home and abroad

Brisbane Branch
Sydney BranchWith regards to the service locations of E.SUN FHC and its subsidiaries in Taiwan as of December
2022, physical channels included 139 branches of E.SUN Commercial Bank and 17 branches of
E.SUN Securities. With regards to digital channels, E.SUN utilizes a variety of service networks,
including Internet banking, mobile banking, website, customer service center, and automatedservice equipment, to deliver online to offline (O2O) financial services that help improve customers'
quality of life. E.SUN's international development strategy focuses on Asia market and aims to build
up a cross-border financial platform with local distinction. E.SUN currently operates 30 offices in
10 countries and regions, including financial centers in Asia Pacific, greater China, and ASEAN
countries. With strategic deployment and cross-border integration, E.SUN provides seamless service
across jurisdictions for our customers with various financial need.

TaiwanOverseas

Virtual channels

Services and Products．139 branches．17 security branches．12 corporate banking regional
centers．8 consumer banking regional
centers．1,306 ATMs

． China : subsidiary E.SUN Bank(China) with 5
operating sites． Combodia : subsidiary UCB with 14 operatingsites and 43 ATMs
． United States : Los Angeles Branch． Hong Kong : Hong Kong Branch． Singapore : Singapore Branch． Vietnam : Dong Nai Branch, Honoi Representative
Ofﬁce, Ho Chi Minh City Representative Ofﬁce． Australia : Sydney Branch, Brisbane Branch． Myanmar : Yangon Branch． Japan : Tokyo Branch, Fukuoka Branch(inpreparation)． Thailand : Bankok Representative Ofﬁce．E.SUN e-Services, including 24hour customer service hotline, smart
customer service, Internet phone andOnline visitor message board.
．Personal internet banking．E.SUN Corporate Online Banking．Mobile Banking APP．E.SUN Wallet．WebATM．E.SUN Securities A+ mobile services

Banking
Consumer ﬁnancing, corporate ﬁnancing, wealthmanagement, trust services, ﬁnancial products, online
banking, mobile ﬁnancing, and other banking services.

16

Securities
Brokerage, derivative ﬁnancial products, credit
transactions, ﬁxed revenue products, e-commerce,and other securities services.
Venture capitalServices provided for companies at the startup stageand expansion stage, and secondarily for companies
at the mezzanine stage.

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1.2 Business Performance

Building Resilience

E.SUN was founded with an expertise-driven management that made a long term
commitment to creating value for stakeholders and to listening to the voices ofshareholders and investors. The core value of E.SUN focuses on disciplined corporate
culture and entrepreneurship, which aims to enhance its tangible and intangible value
and then share the result with all stakeholders.

E.SUN FHC's overall profit after tax in 2022 reached NT$15.76 billion. The EPS,
ROE, and ROA were NT$1.10, 8.06% and 0.47%, respectively. The overall businessmaintained steady growth. In 2022, the growth rates of total loans and total deposit
were 9.4% and 7.6%, respectively. Loan growth was achieved while maintaining
sound asset quality. The NPL ratio was 0.16%. The NPL coverage ratio was 752.6%.

Economic value
distributed (B)

2020

2021

2022

Total assets

2,971,744,682

3,230,908,277

3,479,560,474

Book value

181,600,577

194,384,642

197,090,954

Net revenue (A)56,249,044

57,897,440

54,805,919

Net profit attributable to parent
company

18,026,592

20,558,988

15,759,000

ROA (%)

0.66

0.66%

0.47%

ROE (%)

10.17

10.95%

8.06%

EPS (NTD)

1.43

1.54

1.10

Employee salaries and benefits

14,216,281

14,730,709

14,310,631

Dividend to shareholder

15,345,931

17,947,582

8,565,020

Tax

5,682,662

4,313,353

6,128,365

Investment in social inclusion

307,706

314,961

360,526

Contributions & spending in
financial or trade associations

20,716

16,876

18,66300020,675,748

20,573,959

25,422,714

Lobbying, interest representation/
Political campaigns / Other
Economic
value retained

0.61

0.67

2021

2022

2023

Stock Dividend
Unit: NTD

 Credit Rating

E.SUN FHC received a long-term credit rating of A3 from Moody's, which is thebest performance among any private sector financial holding company in Taiwan.
E.SUN Bank received a long-term credit rating of A2 from Moody's, and a long-term
credit rating A from S&P. Credit rating agencies analyzed that E.SUN's experienced
management team and strategy planning has successfully created a solid brandimage and a stable base of loyal customers, achieving excellent performance inmajor indicators, such as profitability, asset quality, liquidity, and capital.

E.SUN Financial Holding Company
Credit rating
institutions

International
long-term

International
short-term

Domestic
long-term

Domestic
short-term

Outlook

Effective Date

Moody's

A3

P-2

-

-

Stable2022.02

Standard and Poor

-

-

twAA-

twA-1+

Stable2022.07

BBB

A-2

-

-

Stable2022.07

International
long-term

International
short-term

Domestic
long-term

Domestic
short-term

Outlook

Effective Date

Moody's

A2

P-1

-

-

Stable2022.02

Standard and Poor

-

-

twAA+

twA-1+

Stable2022.07

S&P

A

A-2

-

-

Positive2022.07

S&P

E.SUN Bank
Credit rating
institutions

E.SUN Securities
Credit rating institutions(A) - (B)Cash Dividend
0.19
0.38

Note: Dividends are calculated to two digits after the decimal. Dividends distributed in 2022 is the retained
earnings of 2021.

Unit: NTD thousands

Profitability

0.67

0.61

 Financial Performance

Management
capabilities

Seeking for Common Good Dividend Distribution

GRI：201-1、415-1

Item

Our People

Fitch

17

Domestic long-term

Domestic short-term

Outlook

Effective Date

AA-(twn)

F1+(twn)

Stable2023.02

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1.3 Sustainable Governance GRI：2-13、2-14、2-16
 Sustainable Development Committee

E.SUN established the Corporate Social Responsibility Committee in 2011, andrenamed it to Sustainable Development Committee in January 2021. The committee
serves as the company's dedicated unit for sustainable development, led by thechairman, and composed of board members (including 2 independent directors).
The committee consists of 6 working groups focusing on corporate governance,sustainable ﬁnance, climate change, environmental sustainability, human rights
protection, and social welfare. The working group members come from various
departments of the subsidiary companies, effectively integrating resources andimplementing sustainable strategies across all departments. The committee reports
on ESG strategy and implementation results to the board at least twice a year. In
2022, 5 out of 7 board meetings included ESG topics on the agenda (71% of thetotal meetings), including: (1) Sustainable development blueprint and implementation
status; (2) Speciﬁc plans for sustainable development; (3) Sustainable policies andregulations; (4) Greenhouse gas inventory and veriﬁcation schedule; (5) Identiﬁcationof 2022 material issues; (6) 2022 Sustainable implementation report.

Our People

2022 Sustainable Development Committee Major Agenda

Agenda Number

1. Determination of annual sustainable development plan and strategy

1

2. Determination of sustainable development projects and activity

2

3. Tracking and review of the implementation results of annual
sustainable development plan, strategy, projects, and activities

3

4. Decision on other sustainable development-related matters

7

Board of Directors

Sustainable
Development Committee

Chairperson, President

Office of CSO

Seeking for Common Good

6 Sustainable Working groups
Corporate
Governance

Sustainable
Finance

Climate Change

Environmental
Sustainability

Human Rights
Protection

Social Welfare

Sustainable Development Committee Operation Method
Ofﬁce of CSO
Plan annual work items

Sustainable Development
Committee Conﬁrms the work plan

Submit to the Board of Directors

2022 Work Plan and Implementation Results
2022 Annual Work Plan

2022 Implementation Results

1. Governance: In accordance with the FSC's'Sustainable Development Blueprint' 20222024 key measures, continuously refine legal
compliance, information security protection, andanti-money laundering prevention.

Ranked in top 5% in Corporate Governance Evaluation the 7th time; strengthened therole and function of the board in the three lines of defense; promotinglegal compliancemanagement system projects; expansion of the scope of international certification forbanks and securities, obtaining BSI 10012 2017 Personal Information Management System
Certification.

2. Social: Focus on talent cultivation, friendly
working environment, treating customers fairly,
and inclusive finance. Promoting academic,
social care, sports development, and humanities
and arts.

Employees' average training hours 57.38 hours; Cooperating with Taiwan Institue For
Sustainable Energy (TAISE) to launch the 'Sustainable Finance Management Certification
Class'; establishing the 'E.SUN Bank Fair Treatment of Customers Principles Education
and Training Program', achieving 92% satisfaction rate among all channels and overall
NPS of 60%; promoting academic education, cumulatively establishing 173 E.SUN
libraries; promoting arts, holding the 'Eternal Love Concert' at the National Concert Hall.

3. Environmental: Deepening climate change
management and actions based on the TCFD
framework, creating a sustainable operating
environment, deepen carbon reduction efforts,
and promote sustainable financial services.

Issuing the first 'Climate and Environmental Report'; Establishing climate change risk
management policies for financial holding companies and banks; passed the SBTi's
target review in March 2022; joining RE100 in July 2022, committing to 100% renewableelectricity use for domestic and overseas sites by 2040; expanding the ESG engagement
project, with a total of 133 participating enterprises; green loans and sustainable-linked
loans reached NT$94.3 billion, providing ESG consultation services to more than 100
enterprises.

18

Task force
Actual implementation

2023 Annual Work Plan
1. Corporate Governance: In accordance with Corporate Governance 3.0,
the 'Sustainable Development Blueprint' and the 'Green Finance Action
Plan', strengthening management of governance, asset security, antimoney laundering, and fair treatment of customers.
2. Sustainable Finance: Follow the national 2050 carbon neutrality
strategy, promoting responsible lending and investment, responsible
product issuance with positive impact, and assists enterprises in
low-carbon transformation. Leverage the power of technology, andcollaborates with partners to promote inclusive finance.
3. Climate Change: Continuously deepening climate governance inaccordance with TCFD, adjusting investment and business strategies
in line with SBT carbon reduction targets, and assisting industries intransitioning towards decarbonization.
4. Environmental Sustainability: Adhering to SBT and RE100 targets,
implementing Scope 1 and 2 energy-saving and carbon reduction
measures. Promoting biodiversity through systematic approaches andinitiating biodiversity conservation actions.
5. Human Rights Protection: Creating an equal, diverse, friendly, and safe
workplace environment. Focusing on strategic talent development andemployee sustainable transformation.
6. Social Welfare: Continuously promoting academic education, social
participation, sports development, and cultural arts as four major
focusing areas.

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Seeking for Common Good Sustainable Development Blueprint

In the 4th decade, E.SUN aims to become a distinctive benchmark bank in Asia, targeting to be the sustainable development benchmark in Asia, thebest sustainable partner for entreprises and customers by 2030, and achieving net-zero emissions by 2050. The sustainable development blueprint
includes cultural and talent, system and risk management as two foundations, followed by three major strategies: meeting international standards,
creating value through transformation for sustainability , and exercising influence in key matters.

Asia's Benchmark for Sustainable Development

Net zero emissions by 2050, support the sustainability of enterprises by 2030, customers' best partner
Meet international standards,
maintain leadership

Start from own operations and adopt best practices

PCAF

SBTi

TNFD/RE100

TCFD

PRB

SASB

DJSI

SDGs

EPs

GRI

MSCI ESG

CDP

Transformation for sustainability,
creating value
Continued innovation to improvesustainable financial services

ServicesGreenfinance

Products

Responsible
lending

Responsible
investment

Carbon cost

Sustainability Digital
Technology

Inclusive
finance

Sustainability
consulting
Responsible
products

Exercising influencein key matters

Value chain communication
Government/
Financial Institutions/Society
Foreign Investors/
Suppliers
Customers

Foundations management rating

Policy communication& industry benchmark
Information disclosure/
Engagement
ESG Initiative/
Consultation/
Engagement

System and risks． Emphasize corporate governance． Establish a sustainable governance organization

Climate change, operational resilience, FinTech, information security, human rights protection

Culture and talent． E.SUN employees strive to be first-class citizens of the world． E.SUN endeavors to become a first-rate global corporate citizen

Honesty and integrity, volunteer spirit, talent cultivation, employee care

19

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1.4 Material Issues
GRI：2-12、2-29、3-1、3-2、3-3

E.SUN identify material issues by latest GRI Universal Standards 2021 and AA 1000 Account Ability Principle Standard, including the principles of materiality, inclusiveness,
responsiveness, and impact, to identify material issues. We further assessed the impact of each material issues on the economy, environment, and human rights. Thesemateriality is the basis for planning our sustainable development strategy, and also the basis for information disclosures.

 Implementation Steps
1. Conﬁrming Organizational
Connections

2. Focus on sustainability issues

3. Identify stakeholders

4. Analyze operational impact

Determine organizational connections based on
E.SUN's operating scope and business scope.

Referencing international sustainability standards
and guidelines (GRI Standards, SASB, SDGs, GRI
Financial Services Sector Supplement, ISO 26000,
TCFD), sustainability investment ratings (DJSI,CDP, MSCI), domestic and foreign financial industry
cases, and stakeholder communication processes,
the office of CSO has compiled and listed 21
sustainability issues.

Following the five dimensions of the AA1000SES
Stakeholder Engagement Principle (AA1000
Stakeholder Engagement Standard): influence,
attention, responsibility, dependency, anddiversity, 18 internal units were sent stakeholder
identification questionnaires. The results werecompiled and approved by the office of CSO, andclassified into 7 stakeholder groups: employees,
customers, shareholders/investors, government
agencies, media (including rating agencies),
communities (surrounding communities, publicwelfare and environmental partners), andsuppliers.

The 'Sustainability Issue Impact Assessment
Form' was sent to the 18 units (same as thestakeholder identification units), asking each unit
to evaluate the 21 sustainability issues basedon the six dimensions (increasing revenue,
reducing costs, improving customer satisfaction,enhancing brand image, reducing operationalrisks, and stimulating innovation opportunities).
The evaluation results serve as a reference for the
impact level of the issues.

21 sustainability issues

7 major stakeholder groups

5. Analyze economic, environmental, and social impacts

6. Assessing impact
signiﬁcanceThe 'Economic, Environmental, and Social Impact Assessment Form' was sent to the relevant units forthe 21 sustainability issues, asking them to evaluate the positive or negative impacts on the economy,
environment, and people caused or received by E.SUN's business activities/products/services, etc. The
evaluation results were compiled by the office of CSO.

The office of CSO comprehensively considers theresults of Step 4 operational impacts and Step
5 economic, environmental, and social impacts,setting impact significance thresholds.

20

7. Conﬁrming material Issues

13 material Issues 11 GRI themes

Based on the impact significance thresholds, theoffice of CSO has identified 13 material Issues
for 2022 from 21 sus-tainable issues, which havebeen reported to the Sustainable Development
Committee and the Board of Directors.
Disclosure in the report: In accordance with
GRI reporting requirements, this report explains
the rationale, short-medium-long term goals,
results, and management approaches formaterial Issues. The 13 material Issues for 2022
cover 11 GRI themes, including 9 GRI standard
themes, 1 general disclosure themes, and 1 GRI
G4 financial industry sup-plementary indicatorconsideration aspect and 1 customized theme.

Our Story

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Seeking for Common Good

1.4.1 Identiﬁcation of stakeholders
GRI：2-29、2-12

E.SUN understands issues that stakeholders are concerned
about through diverse communication channels, and formulates
management policies and implementation plans on this basis, inorder to respond to stakeholders' needs and expectations. Task
forces of the Sustainable Development Committee summarize andreport issues of concern to stakeholders, communication, andimplementation to the Board of Directors each year.

Employees

Talent and innovation are the most
crucial to building a company's corecompetitiveness, and also the mostimportant foundation for achieving
sustainable development.

Media 3Customers

Employees

The media is an important channel
used by E.SUN to provide andcollect information, and also
for E.SUN and stakeholders tounderstand each other.

Media

E.SUN values customer input andfocuses on providing an optimal customer
experience with the customers at the centerand creating value for customers.

Customers

Stakeholders

Community 2
We believe that one simple act of love
can inspire others to love, and have thus
combined the capabilities of charity andenvironmental protection organizations
to jointly protect our planet.

Suppliers 1

Community

Shareholders and investor
Shareholders andinvestor

Suppliers

Government

The long term support from shareholders
and investors brings more strength tosustain growth of E.SUN.

Government
The financial sector is under highlevel supervision. We strictly abide bygovernment laws and cooperate withgovernment policies.

Suppliers are E.SUN's partners insustainability and growth.

Note:
1. Suppliers include contractors and suppliers. Please see 6.3.1 Supplier Management for the types of suppliers.
2. Communities include neighborhoods around the branches and partners in charity work and environmental causes.
3. Media includes credit rating institutions and initiative organizations

21

Our Story

Employees

Customer

Journey to Net Zero

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Our People

Seeking for Common Good

Meeting
objectives

Communication frequency/mode

Communication
Performance

Focus Content

E.SUN's Response

Stakeholder Response (Case)

Talent and innovation are themost im-portant
keys to the corecompetitivenessof an enterprise
structure. Continuous andgood communication helps toimprove employee
motivationand company
recognition.

． Daily: Morning meetings． Weekly, Monthly: Video conferences,
work week reports, legal complianceannouncements． Quarterly: Enterprise labor meetings． Annually: Employee opinion exchange
questionnaires． Annually: Knowledge sharing seminars． Irregularly: e-HR E.SUN Human Park
platform, e-learning+ digital learning
platform, various opinion response
mailboxes, such as the Learning Sister
mailbox, HR Manager mailbox, etc.
． Irregularly: Two-way communication,
EIP website． Irregularly: Professional training
courses and development classes． Contact Information: Human
Resources Department． E-Mail: hrd@esunbank.com.tw． Hotline: (02) 2175-1313 #8701． 5 Employee
Communication Meetings． 356 Employee Opinion
Communication Cases
Handled
． 6,951 Employee Opinion
Exchange Questionnaires

Establish clearer
and fairer evaluation
standards, and provide
speciﬁc feedback tocolleagues during
daily work and whenannouncing evaluation
results.

． The evaluation standards
are composed of businessperformance and behavioral
performance, based on the annual
OKR of the unit or regional teamperformance goals, combinedwith individual job responsibilities,
and discussed with the supervisor
to set personal annual goals foreach item.
． We will discuss with various
business management units togradually improve the evaluation
indicators according to the groupand subgroup.
． The essence of performance
management is real-time andspeciﬁc feedback and guidance.
Unit/direct supervisors should
arrange performance interviews
with colleagues during regulardaily and year-end evaluations,providing accurate feedback andspeciﬁc suggestions.

． After discussing with the supervisor, ﬁll inyour own goals to focus more on the key
points of your work, and at the same timestrengthen the areas where you are notstrong enough. (Branch supervisor)． Thank you for having a separate discussion
with us, listening to our inner thoughts andsuggestions for improvement in our work,
which can be very helpful and should
continue in the future. (collegue of Retailbanking group)． After discussing with the supervisor, I
have a better understanding of my overall
performance this year. After being remindedby the supervisor, I can also focus on
improving my weaker areas. (Branchcolleague)

Understandmarket trends
and motivations,improve personal
service, create
tangible andintangible value
for customers,
and continuously
strengthen
E.SUN'scompetitiveness． Daily: E.SUN e-customer service(24-hour customer service hotline,
intelligent text customer service, online
telephone, website visitor message
board)． Daily: Customer opinion complaint
hotline and customer opinion QR code,
E.SUN i mobile financial customer
inquiry． Weekly: Customer satisfaction survey,
Line official account, Facebook E.SUN
Lucky Cat fan group, E.SUN digital
life, health fan group． Every 2 months: Smile E.SUN
bimonthly magazine． Quarterly: Sunrise E.SUN quarterly
magazine． Twice a year: Corporate customer
satisfaction survey． Irregular: Personal visits, telephone
contact． Contact method: E.SUN customer
service center 24-hour service hotline(02)2182-1313 / 0800-30-1313． 1,860 customer service
center customer
suggestions． 57,996 ofﬁcial website
visitor message board
messages． 62,220 customer
satisfaction survey
questionnaires． 9,037 customer opinion QR
codes． A total of 525 corporate
customer satisfaction
questionnaires were issued． Employee
service quality,
professionalism, andefﬁciency． Internet banking/mobile banking
functionality
completeness andease of use． Epidemic relief loans． Transaction security
and fraud prevention． Sustainable
development trends,
corporate response
directions, andsustainable ﬁnancial
services． Continuously improve service
quality through customer service
management system and combine
internal and external educationand training courses to cultivate
employee expertise.
． Continuously update digitalchannel services, improve
operational stability, and plan
relevant functions based on
customer feedback to meetcustomer expectations.
． Offer 3-6 months of extension andrelief assistance to customers
affected by the epidemic who
have difﬁculty repaying loans.
． Form a cross-departmental antifraud team to regularly exchange
information on new types of fraud
and quickly respond to changes inmethods.
． Conduct practical ESG exchanges
with corporate customers throughinternal specialized teams, provide
suggestions for carbon reduction
transformation, or plan appropriate
sustainable ﬁnancial services
according to customer needs.

Hello, I am a manager from the Dunan branchof E.SUN Bank. On October 6th, my motherwent to the Dunan branch to transfer morethan 4 million NTD to a person (a scammer).
The manager and staff on duty noticed that
there might be a problem with the other party's
account and did not help my mother transfer
the money. They also kept calling me to inform
me of the situation. I am very grateful! If it
weren't for the vigilance of the manager andstaff, my mother would have lost the money tothe scammer. On October 7th, we also went to
the police station to ﬁle a report. Once again, I
would like to thank the manager and staff of the
E.SUN Bank Dunan branch. (Dunan branch,
Ms. Yan)

Focus Issues． Talent Attraction andRetention． Talent Cultivation andDevelopment． Employee Care andFriendly Working
Environment

Focus Issues． Customer experience andfair treatment． Financial technology andinnovation． Inclusive ﬁnance． Information Security andPersonal Data Protection． Green ﬁnance22

The service attitude, initiative, and patience ofthe lady helping me are excellent. I appreciatevery much her helpful approach, especially toan old man who returned from overseas andwas not familiar with the banking procedures of
Taiwan. She is undoubtedly an excellent staff
member of your bank, offering good customer
service. I forgot to take down her name. Please
convey my heartfelt thanks to her and wish
her a Merry Christmas and Happy New Year!
(Xindian branch, Mr. Liu)Our Story

Meeting
objectives

Shareholders/
Investors

Government
agencies

Assist inunderstanding
E.SUN's
performanceand strategic
direction,
strengthen
theirconfidence in
E.SUN, andbe willing tosupportUnderstandthe latest
trends anddynamics ofregulatory
supervision,
supportgovernment
policies andTaiwan's
sustainable
development

Journey to Net Zero

Communication frequency/mode

Banking for Better

Communication
Performance． Monthly: Announce operating
performance． Monthly: Open information
observation station． Quarterly: Chinese and English legal
person brieﬁngs, quarterly ﬁnancial
reports． Quarterly: Board of Directors,
functional committees． Annually: Shareholders' meeting． Annually: Annual report,sustainability report． Irregularly: visits andteleconferences, announce credit
ratings and outlooks． Irregularly: Domestic and foreign
roadshows, domestic and foreign
investment institutions researchmeetings, investment forums,
material information announcements． Contact method: Investor Relations． E-Mail: ir@esunbank.com.tw． Chinese andEnglish legal
brieﬁngs: 8
sessions． Participation in
investment forums
or roadshows: 8
sessions． Investor andanalyst meetings:
149 sessions． Annual: Government agency
evaluation． Irregular: Policy researchmeetings, seminars, public
hearings． Irregular: Official documents,
meetings, phone calls, emails,
and public information． Irregular: Financial inspections,special project meetings． Respond promptly
to inquiries fromsupervisory
authorities． Proactively
participate inrelevant meetingsand courses

Focus Issue

Building Resilience

Our People

Seeking for Common Good

Focus Content

E.SUN's Response

Stakeholder Response (Case)． Corporate culture
led by professional
managers, employee
cohesion, andestablishment． Traditional interest
rate, market, credit
risk management,
and emerging risk
factor strategies． Net zerotransformation andresponsible ﬁnancial
development． Implement the three pillars of E.SUN's long-term
development． Expose the management framework of various
risk issues and report regularly to the board of
directors． Actively follow international ESG sustainability
standards and practices, and promote throughﬁnancial products, services, and customer
consultation． E.SUN can respond to external
environmental changes, actively
manage risks, and maintain
good asset quality. (Top 10
international fund managementcompanies)． E.SUN's performance in
ESG sustainable ﬁnance isinternationally leading and can behighly integrated with business,
exerting inﬂuence. (Famous Hong
Kong asset management group)． E.SUN's climate change
response strategy is a benchmark
for the banking industry and is
the most representative target in
our investment portfolio. (Wellknown sovereign fund)． Actively respond to
global sustainable
development actions
and national carbon
emission reduction
targets． Evaluate whether
the developed
trust products canbecome a stabilizing
force for society． Establish equal,
mutually beneﬁcial,
and trustworthy
principles to protect
the rights of ﬁnancial
consumers． E.SUN establishes a sustainable developmentofﬁce and a sustainable development ofﬁce,with six working groups: corporate governance,sustainable ﬁnance, climate change, environmental
sustainability, human rights protection, and social
welfare. Through resource integration, sustainablestrategies are implemented in each subsidiary unit.
． Cultivate a team of 100 'Senior Financial Planning
Consultants' and launch several innovative trust
services, including the '1+1 Trust Combination'that combines employee stock trust and annuity
trust; second, annuity trust digital services. Third,
launch 'Trust Value-added Services' in cooperation
with different industries, such as nutrition andfood advice, home safety inspection, and healthcheckups.
． The board of directors is highly involved inestablishing a corporate culture that values
consumer protection and has established a fairtreatment principle promotion committee, chairedby the general manager, with independent directors
participating in guidance and supervision. The
committee has established a consumer protectiongroup and a customer service group, responsiblefor implementing fair treatment of customers andstrengthening the overall operation of the threedefense lines from regulations, systems, andservice aspects.

． The Financial Supervisory
Commission selected ﬁve major
ﬁnancial holding companies,
including E.SUN FHC, to form the'Pioneer Alliance' as an important
promoter of carbon emission
reduction. In the future, sustainableﬁnancial policies will be formulated
based on the experience of thepioneers to realize the core valuesof sustainable development.
． E.SUN won the 'Best Annuity
Care Trust Innovation Award',
demonstrating its commitment toimplementing inclusive ﬁnancein innovative trust services. The
annuity trust's accumulated capitalreached NT$88.6 billion, with a
net increase of NT$43.48 billion,
ranking ﬁrst among private banks.
． E.SUN takes customer service
and consumer protection as itscore values, with speciﬁc andcreative measures, and has
been recognized by the Financial
Supervisory Commission as oneof the top 25% of banks in theindustry.

． Honest
management． Risk management． Green ﬁnance

Focus Issue． Green ﬁnance． Climate change
response． Inclusive ﬁnance． Customer
experience andfair treatment

23

MediaCommunity(public welfare,environmental
protection,and industryacademic
cooperation)

Our Story

Journey to Net Zero

Meeting
objectives

Communication frequency/mode

Strengthen
E.SUN'scommunication
with the publicthrough media
channels, gather
the latest topics
and trends insociety andinternationally

Join hands withvarious sectors tocreate a shared,
harmonious newliving circle,
making Taiwan abetter place． Monthly: Publish preliminary
performance． Semi-annual: hold a press
conference on operational
performance． Immediately: full-time units andspecial personnel responsible
for the media communication． Immediate: Domestic andforeign press releases andstatement． Irregular: media interviews,
press conferences, and crisis
management． Irregular: media forum/seminar,
media evaluation, questionnaire
response． Irregular: Official website news
release． Contact: Public Relations． E-mail: pr@esunfhc.com． Tel: (02)2175-1313#1335,8190． Weekly: Close community
environmental cleaning, local
financial community service． Annually: Organize publicwelfare activities, support
art exhibitions, music
performances, sports events,
academic education, ecologicalconservation, etc.
． Irregularly: Cross-industry
cooperation and visits, art
lectures． Contact information:． E.SUN Volunteer Foundation(02)2175-1313 #9300． E-mail: Volunteer@esunbank.
com． E.SUN Cultural and Educational
Foundation (02)2175-1313 ext.
9305
． E-mail:Esunfoundation@esunbank.com

Banking for Better

Building Resilience

Our People

Seeking for Common Good

Focus Content

E.SUN's Response

Stakeholder Response (Case)． Grasp the trends ofthe overall businessenvironment, andformulate forwardlooking businessstrategies． Implement honest
management,
integrate internaland external
resources forbusiness． E.SUN is named after thehighest mountain in Taiwan
and is determined to become
the best bank and the mostrespected company. E.SUN
has chosen to take a different
path and has created many
milestones for Taiwan's
ﬁnancial industry in the past
30 years.
． 2022 is the beginning of
E.SUN's fourth decade.
The ﬂywheel of E.SUN isaccelerating. Taiwan's E.SUN
will become Asia's E.SUN
in the next 10 years, andmove towards to an enduring
company, and realizes thevision of "the highest mountainand the best bank".

． Economic Daily News - Establishedin 1992, E.SUNis celebrating its 30th
anniversary this year. 1992 was theyear when new banks blossomed, andbetween 1991 and 1992, 16 new banks
were established, with E.SUN being
one of them. After 30 years, E.SUN has
become the third-largest card issuer
among new banks, and its parent
company, E.SUN Financial Holding, isalso a medium-sized financial holding,with outstanding achievements that make
E.SUN people proud.
． Financial News - In terms of banking
services, E.SUN fully demonstrates its
agility and innovation, taking integrated
innovative retirement and annuity trust
services as an example, which aredesigned based on the life cycle ofclients, integrating various financial andnon-financial needs, and highly rated fortheir flexibility and innovation in projectplanning.

． Public welfare
activities resource
investment． Environmental
protection issues． Sustainable ﬁnancepractices． Children's reading,rural English
education, andAmerican education． Energy-saving and carbon
reduction:． Actively respond to summer
solstice light-off activities,
Earth Hour, Beautiful Taiwan
Smile E.SUN, beach andmountain cleaning activities． Public welfare activities:． Charity sales, blood donation
activities, overseas medical
services, medical equipment
donations． Organizing domestic andinternational art exhibitions
and performances, supporting
sports events, cultivating
outstanding talents throughscholarship programs, E.SUN
Academic Awards． Organizing ﬁnancial
management lectures,promoting E.SUN Librarystorytelling, anti-drug
advocacy tours, and rural
English education． Due to the pandemic, many children
have experienced an increase innearsightedness due to online classes.
Without E.SUN's care for children's special
projects, many underprivileged children
might have to live a blurry life. Thanks to
E.SUN Volunteer Foundation for giving
children a bright win-dow and opportunities
for the future. (Nanxing Elementary School,
Group Leader)． Through the E.SUN Academic Awards, we
encourage teachers to strive for excellencein research and international recognition.
Under the support of E.SUN Academic
Awards, there is a huge incentive effect on
improving academic research capabilities.
We hope that more enterprises like E.SUN,
who love Taiwan and have a deep senseof mission for the nation and society,will cooperate with schools and lookforward to more outstanding teachers
publishing research results in international
top journals. (Dean of the College ofManagement, Qinghua University)

Communication
Performance． Held 34 media events． Real-timecommunication ofimportant information
reached 2,961 people． Issued 128 Chineseand English press
releases． Released 143 media
communication
messages on website
Focus Issue． Corporate governance． Honest management． Compliance． 173,346 beneﬁciaries． Over 829 cooperative
public welfare activity
units

Focus Issue． Social impact． Financial inclusiveness． Diversity, equality, andharmony

24Our Story

Meeting objectives

Supplier

Suppliers are partners
in E.SUN's sustainable
development andgrowth. Throughprocurement
actions, suppliers
are inﬂuenced to
expand the green
product market andimplement responsible
consumption andproduction, achieving
energy-saving,carbon reduction,and operational cost
reduction effects, andpromoting sustainablebusiness concepts.

Journey to Net Zero

Banking for Better

Communication frequency/mode

Communication Performance

Focus Content

E.SUN's Response

Stakeholder Response (Case)． Weekly: Pricing meetings． Bi-monthly: E-mails． Irregular: Website public
information, supplier visits,
supplier conferences． Over 450 pricing
meetings． Bi-monthly: 171 supplierself-assessment
exchanges． Irregular: 46 suppliervisits, green procurement
and social innovation
service productmechanism exchanges
through supplierconferences． The Philippines has
begun to focus on carbon
emission issues, so thegreenhouse gas inventory
is being reviewed.
． Chien Lung is the bank's
ATM maintenancecontractor, mainly
responsible for the realtime monitoring system oftransportation methods
and communication
networks. Information
security is of utmost
importance, so relevant
certiﬁcations will be
introduced to keep
up with international
standards.
． The art gallery on bothsides pays attention to
the connection between
art and ESG, and uses
internal regulations
to exert restraint andemphasize the reuse of
exhibition materials.

During theprocess ofobtainingcertiﬁcations
from suppliers,
we continuously
pay attention
and exchange
information
with suppliers
regarding relevant
requirements andnew knowledge.

． In terms of environ-mental protection, the boardof directors has approved the green-house gas
inventory and veriﬁcation schedule in May this year,
and has actively sought consult-ing services fromrele-vant companies. (Zhongfei)． To maintain supplier relationships, our com-pany
plans to obtain ISO27001 and ISO9001 certiﬁcations
under the implementation of in-formation security
management and the establishment of stand-ard
management pro-cesses. (Qianlong)． Since 2019, internation-al art fairs have been
discussing climate change issues, conduct-ing
various discussions, and focusing on topics such as'carbon footprint in contemporary art' and 'genderequality', set-ting up workshops, and actively
bringing sus-tainable issues into the art world. This
sustaina-ble trend has attracted attention in various
gal-lery industries. There-fore, both galleries have
set the goal of 'Green Gallery Operation Guidelines'
since 2021. From gallery operations, reducing
resource pack-aging materials, trans-portation tools
and per-sonnel mobility for art fairs, and reducing
car-bon emissions through energy; in terms of materials, reducing paint-ing materials packaging andusing environmen-tally friendly materials; in termsof operations, using low-carbon trans-portationand strategic methods; ﬁnally, moni-toring overallbehavior and serving as a future improvement
direction, and incorporating key projects into various
professional and future plans. Through the soft
power of art as an in-terface to awaken peo-ple's
attention to envi-ronmental and social issues, wehope to cre-ate a better future to-gether. (Double
Square)Focus Issue． Sustainable operation
environment． Information security
protection and personal
data protection． Employee care andfriendly working
environment

Building Resilience25

Our People

Seeking for Common Good

Our Story

Journey to Net Zero

Banking for Better

Building Resilience

1.4.2 Identiﬁcation and management ofmaterial issues

Economic

People (including human rights)
FinTech and Innovation
Green Finance

Treating Customers Fairly and Customer Experience
Code of Conduct and Ethic
Risk Management
Climate Change
Information Security and Personal Data Protection
Inclusive FinanceCompliance with Laws and Regulations
Talent Attraction and Retention
Corporate Governance
Employee Care and Friendly Workplace Environment
Aging and declining birthrate
Supplier Management
Academic Education(1) Quantitative impact：
The material Issues are scored on a scale of 1-5 based on their impact on
the economy/environment/people (including human rights), probability ofoccurrence, and are evaluated by relevant units and consolidated by the
Sustainable Development Office. Example as follows:
Economic

Environmental impact

Human (including
human rights) impact

Posiitive

Negative

Posiitive

Negative

Posiitive

Negative

Financial Technology
and Innovation

20

10

14

4

18

8

Talent Cultivation andDevelopment

20

3

16

5

25

3

15.9

4.33

23.3

5

15

4

Integrity Management

Environment

Talent Cultivation and Development

1. Evaluation process:Customer Experienceand Fair Treatment

Seeking for Common Good

Material issue impact assessment results

The working group of the Sustainable Development Committee evaluates theimpact of 13 major issues on the economy, environment, and people (including
human rights) in terms of actual/potential, positive/negative impact, and thelikelihood of occurrence. The initial results are summarized and, after consultation
with the management team, the 2022 E.SUN'smaterial issues are selected andranked based on the impact degree. E.SUN also develops the management
mechanisms in accordance with material issues, including setting challenging
targets and incorporating overall corporate risks Management (ERM). E.SUN also
makes the target and linked to senior management level compensation.

Green Finance

Our People

15
25

12.5
10

0
0

0
0

20
22.5

Biodiversity
Humanities and Arts
Human Rights Protection
Sustainable Operating Environment
Social Participation

0

40

60

Significance threshold80

Top 5 in terms of impact on the economy, environment, and people (including human rights)
Positive impact

Ranking by economic impact

Negative impact

Code of Conduct and Ethic
FinTech and Innovation
Risk Management
Treating Customers Fairly and Customer Experience
Corporate Governance

0

5

10

15

20

25

Positive impact

Ranking by environmental impact

20

30

35

Negative impact

Green Finance
Climate Change

1Talent Cultivation and Development
FinTech and Innovation
Supplier Management

Risk Management(2) Impact ranking：
The Sustainable Development Committee's working group calculates thequantitative results of 13 material Issues' impacts. After considering therecommendations of the management team, the evaluation results are shownin the chart on the right:

20

0

5

10

15

20

25

Positive impact

Ranking by impact on people (including human rights)

30

Negative impact

Treating Customers Fairly and Customer Experience
Employee Care and Friendly Workplace Environment
Talent Cultivation and Development
FinTech and Innovation
Information Security and Personal Information Protection Management

26

0

10

20

30

40

35

50

Our Story

Journey to Net Zero

Banking for Better

Building Resilience

Our People

Seeking for Common Good

2. Impact explanation and management measures:
Material Issues

Financial Technology
and Innovation

GRI Speciﬁc Theme Indicators
Self-deﬁned Material Issues
GRI 203 Indirect Economic
Impacts
GRI G4 Product Portfolio

Impact Categories and Descriptions

Actions Taken(Corresponding Chapters/Appendices)

Substantive/Positive/Economic & Human (Human Rights)
E.SUN continuously adopts AI, containerization, cloud computing, and other emerging technologies, notonly enabling more efficient resource allocation and adjustment, but also enhancing customers' willingness
to use financial services, generating positive economic benefits. In addition, convenient financial services
reach more customers, achieving the effect of inclusive finance, which also has a positive impact on humanrights.

3.4 FinTech and Innovation

Substantive/Positive/Economic & Human (Human Rights)
Talent Cultivation andDevelopment

GRI 404 Training and
Education

Talent is a leading indicator and a key factor, and it is the foundation of a company's competitiveness. A
good talent cultivation system strengthens employees' professionalism and loyalty to E.SUN, positively
impacting E.SUN's economic performance. In addition, good talent cultivation also enhances employees'
knowledge, making them more contributive to society.

5.1 Talent Cultivation and Development

Substantive/Positive/Economic Environment

Green Finance

GRI 203 Indirect Economic
Impacts
GRI G4 Product Portfolio

Lending aspect: E.SUN incorporates environmental and social risk assessment and management into its
lending process, avoiding negative impacts on the ecological environment, labor rights, etc., and promotes
sustainable linked loans, green lending, and other financial services to encourage enterprises to set
sustainable goals, promote green energy, and support sustainable-related industries.
Investment aspect: Through the issuance of sustainable development bonds, funds are invested inindustries that are environmentally and socially friendly, while supporting corporate sustainable financing
and assisting enterprises in issuing sustainable development bonds. The funds raised are used for green
investment projects and social benefit investment projects.

3.1.1 Responsible Lending

3.1.2 Responsible Investment

Practical/Positive/Economic & Human (Human Rights)
Customer Experienceand Fair Treatment

GRI 2: General Disclosure
2021

Integrity Management

GRI 205 Anti-corruption
GRI 206 Anti-competitive
Behavior

A good customer experience affects the willingness of customers to use financial services, and a higher
satisfaction level makes customers more willing to recommend E.SUN. Implementing fair treatment ofcustomers, actively addressing customer complaints and handling them properly can form a positive cycle,
indirectly driving economic growth. E.SUN also provides multiple channels (24-hour telephone customer
service, intelligent customer service, and visitor message boards, etc.) for customers to provide feedback,which has a positive impact on customer rights.

3.3 Treating Customers Fairly andCustomer Experience

Potential/Positive/Economic
Integrity management is fundamental to the financial industry. Good corporate governance increases
the confidence of stakeholders in E.SUN, making them more willing to invest in and cooperate with thebank, which has a potential positive impact on the economy. A sound system also ensures that internalmanagement and business activities comply with integrity management, positively affecting various
business activities in the economy.

4.2 Code of Conduct and Ethic

Potential/Negative/Economic & Environmental & Human (Human Rights)
Risk Management

GRI 2: General Disclosure
2021

The financial industry is a credit business with economic risk management. Good risk management can
reduce the likelihood of potential risks such as credit, market, and operational risks for E.SUN, and provide
rapid and accurate response measures, protecting employees and stakeholders when incidents occur.
In addition, a good risk management mechanism can help E.SUN to have a more comprehensive andquantitative assessment basis when facing climate risks.

27

4.3 Risk Management

Our Story

Material Issues

Journey to Net Zero

Banking for Better

GRI Speciﬁc Theme Indicators
Self-deﬁned Material Issues

Building Resilience

Our People

Seeking for Common Good

Impact Categories and Descriptions

Actions Taken(Corresponding Chapters/Appendices)

Practical/Negative/Economic & Environmental
Climate Change Factors

Important Issues

The physical risks of climate change and transition risks may impact E.SUN's investment and business
operations, further affecting the risk profile of E.SUN's asset portfolio. E.SUN's investment portfolio represents the
distribution of industries invested in, indirectly affecting the local environmental ecology. E.SUN has announced
its full withdrawal from coal-related industries by 2035. Although there are more restrictions on business
operations in the short term, it will make the assets more resilient in the long run.

2 Journey to Net Zero

Potential/Negative/Economic & Human (Human Rights)
Information Security and
GRI 418 Customer Privacy
Personal Data Protection

Inclusive Finance

GRI 203 Indirect Economic
Impacts
GRI 413 Local Community
Engagement and Impacts
GRI G4 Product Portfolio

Compliance with Laws
and Regulations

GRI 2: General Disclosure2021

In the digital era, a robust information security and customer data pro-tection system can ensure the stability andsecurity of financial services, reducing the risk of corporate and customer information leakage. Not only must it
comply with legal regulations, but it should also continu-ously improve internal management with high standards,
strengthen employee awareness of customer rights, and implement personal data protection, enhancing
customer trust in E.SUN.

4.7 Information Security and Personal
Information Protection Management

Practical/Positive/Economy & People (Human Rights)
The financial industry is a special industry that provides exclusive loan solutions for economically disadvantaged
groups based on its core business, allowing all social groups to access affordable financial services, which has
a positive impact on the economy. In addition, the popularization of financial knowledge and the understandingof financial products help establish the correct financial concepts for the younger generation, while creating afinancial security defense network for the silver-haired population.

3.2 Inclusive Finance

Hidden/Negative/Economy
Implementing compliance with laws and regulations is the responsibility of enterprises. By establishing agood corporate culture, ensuring that all services and products comply with relevant legal norms can reduce
operational risks, litigation risks, and improve operational performance.

4.2 Code of Conduct and Ethic

Substantial/Positive/Economic & Human (Human Rights)
Talent Attraction andRetention

GRI 202 Market Presence
GRI 401 Employment
Relations

Attracting talent can make E.SUN 's personnel composition healthier, and retention measures can retain key
talents and potential talents, making E.SUN more competitive. By providing competitive talent retention measures,
we can achieve talent attraction and retention, improve employee professionalism, promote employee satisfaction
and customer satisfaction in a positive cycle, and enable the organization to achieve stable and sustainable
development.

5.2 Talent Attraction and Retention

Substantial/Positive/Economic
Corporate Governance

Employee Care andFriendly Working
Environment

GRI 2: General Disclosure
2021

Good corporate governance represents a high degree of stability and health in business operations. Throughdiversified channels, we continuously pay attention to and ensure the quality of information disclosure, constantly
learn, review, and refine the corporate governance structure and mechanism, and enhance the trust of
stakeholders in the company, so as to jointly create the company's long-term maximum value.

4.1 Corporate Governance

Substantial/Positive/Human (Human Rights)
GRI 403 Occupational Safety
and Health

Employees are E.SUN's most valuable assets. We care for their needs and strive to create a friendly working
environment. By implementing hazard identification and risk assessment, we can reduce potential risks and foster
employee engagement. Through continuous improvement of health check systems and refined gender equality
measures, we ensure the well-being of our employees, achieve work-life balance, and protect their rights.

28

5.3 Employee Care and Friendly
Workplace Environment

Our Story

Journey to Net Zero

Banking for Better

Building Resilience

Our People

Seeking for Common Good

Material issues management targets
Financial Technology and Innovation
Strategy*Management Team /compensation linked tomaterial issue

Optimize digital
Chief Digital Ofﬁcer / 20%
experience andoperations, accelerate
digital transformation
with technology, promote
paperless processes,
and convey brand value
to customers.

* Respond to GRI3-3c Policy or Commitment

Key Performance Indicator (KPI)

2022 Target

2022 Achievement Status

2023 Target

2030 Target

Percentage of active customers 2022 New target setton digital channels (ofoverall active customers) Note

54%

56%

65%

Digital applications as aproportion of total (including
deposits, credit cards, loans,and funds)

67%

68%

75%

67%

Note: Because of the Covid-19 pandemic, accelerate changes in customer behavior, regulations, and AI technology, this kpi is added to continuously observe the process of digital transformation.

Talent Cultivation and Development
Strategy*
Talent-oriented
performance
management,
combined longterm strategies
with education andtraining, cultivates thetalents needed by theorganization throughenterprise culture,professional training
and job rotation.

Management Team /compensation linked tomaterial issue
Chief Human Resource
Ofﬁcer / 40%

Key Performance Indicator (KPI)

2022 Target

2022 Achievement Status

2023 Target

2030 Target

Average training sessions per
employee

Maintaining an average of 45
hours or more of training per
employee

Average training hours per
employee: 57.38 hours

Achieving 50 hours or moreof training per employee

Achieving 50 hours or moreof training per employee

Digital literacy certiﬁcation． Integration of digitalrelated courses into
various professional
training programs, with a
100% blended learning(physical + online) ratio,
continuously offering
technology professional
training courses, including
BA and ABA training.
． 35% of domestic
employees have obtained
digital literacy-related
learning certiﬁcations.

． All professional training
courses for various job
categories are conducted
through blended learningwith 100% digital teachingmaterials, including BA/
PM, Agile Development
Certiﬁcation Training,
Digital Technology
Training, and Online
Information Security
Testing, totaling 39,058
participants.
． 29.5% of domestic
employees have obtained
digital literacy-related
learning certiﬁcations (atotal of 2,696 people)． Integration of digitalrelated courses into
various professional
training programs,
continuously offering
technology professional
training courses acrossthe bank.
． 40% of domestic
employees have obtained
digital literacy, AI
certiﬁcation, and digital
operation certiﬁcations.

． Integration of digitalrelated courses into
various professional
training programs,
continuously offering
technology professional
training courses acrossthe bank.
． 80% of domestic
employees have obtained
digital literacy, AI
certiﬁcation, and digital
operation certiﬁcations.

29Our Story

Journey to Net Zero

Banking for Better

Building Resilience

Our People

Seeking for Common Good

Green Finance
Strategy** Respond to GRI3-3c Policy or Commitment

Management Team /compensation linked tomaterial issue

Support for credit recipientswith positive environmental
and social impacts,
including providing green
credit and assisting
enterprises in setting clear
ESG development goals
through sustainable linked
loans

Executive Ofﬁcer ofCorporate Finance /20%

Implement sustainable
investments, increase theproportion of sustainable
development bondinvestments (sustainable
development bonds referto recognized green
bonds, social responsibility
bonds, and sustainable
development bonds)

Chief Financial Ofﬁcer/ 15%

Key Performance
Indicator (KPI)

2022 Target

2022 Achievement Status

2023 Target

2030 Target

Green credit balance

30 billion NTD

53.7 billion NTD (target achieved)

63 billion NTD

100 billion NTD

Sustainable linked loanbalance

30 billion NTD

40.6 billion NTD (target achieved)

50 billion NTD

Occupying 13% of thetotal authorized balance ofcorporate ﬁnance loans

Sustainable
development
bondinvestment
balance

16 billion NTD

25.5 billion NTD (target achieved)

28 billion NTD

42 billion NTD

Customer experience and fair treatment
Strategy*． Focusing on customer
experience, establishinga culture of fair treatment
for customers, andensuring service quality.

Management Team /compensation linked tomaterial issue
General Manager

Key Performance
Indicator (KPI)

2022 Target

2022 Achievement Status

2023 Target

2030 Target

Customer satisfaction

Maintain a satisfaction
rate of over 90% acrossall channels.

Physical Channel: 93.83%
Digital Channel: 94.04%
Customer Service Channel: 92.31%

Maintain a satisfaction rate of over
90% across all channels.

Maintain a satisfaction
rate of over 90%
across all channels.

NPS (Net Promoter
Score)

Maintain an NPS of 40%
or higher.

NPS：60.17%． Maintain a physical chan-nel
NPS of 60% or higher.
． Maintain a digital channel NPS of
55% or higher.
． Maintain a customer ser-vicechannel NPS of 50% or higher.

Maintain an NPS of
60% or higher for eachchannel.

Implement the principleof fair treatment forcustomers

ISO10002 certiﬁed by
BSI annually.

． Successfully passed ISO 10002
certification for the second
consecutive year.
． Ranked in the top 25% in the
Financial Supervisory Commission'sfair treatment of customers
assessment.

Received the Financial Supervisory
Commission's Fair Treatment of
Customers Award.

Received the
Financial Supervisory
Commission's
Fair Treatment of
Customers Award.

30

Our Story

Journey to Net Zero

Banking for Better

Building Resilience

Our People

Code of Conduct and Ethic
Strategy*
Incorporate the valuesof honesty and integrity
into the corporate
culture, creating atrusting relationship withcustomers.

Management Team /compensation linked tomaterial issue
Chief ComplianceOfﬁcer / 40%

Seeking for Common Good

* Respond to GRI3-3c Policy or Commitment

Key Performance
Indicator (KPI)
Education, training,
and implementationassessment

2022 Target

2022 Achievement Status

2023 Target

2030 Target． Continuously
implement
education,
training, andpromotion.
． Maintain 100%
employeeparticipation.

． Conduct integrity management
education through various training
courses.
． Provide all directors with 'Integrity
Management and Internal Major
Information Handling Education andTraining' materials.
． Implement online integrity
management education, training,
and testing, with 100% employee
participation.

． Continuously implement
education, training, andpromotion.
． Maintain 100% employee
participation.
． Integrate dishonest behavior risk
assessment activities and overall
operational risk management
mechanisms.

． Continuously implement
education, training, andpromotion.
． Maintain 100% employee
participation.
． Continuously optimize theintegrity management behaviorrisk assessment mechanism.

Risk Management
Strategy*
Utilize information
technology and scientiﬁcdata analysis tools tostrengthen the early
warning and adaptabilityof risk management,
thereby enhancing theeffectiveness of risk
control.

Management Team /compensation linked tomaterial issue
Chief Risk Ofﬁcer /60%

Key Performance
Indicator (KPI)
1.Management
mechanism
for the impact
of interest raterisk changes
on assets andliabilities
2. Completion
rate of credit
risk model
management
mechanism
3. The reﬁnement
ratio of the 3+1
operational risk
managementtool

2022 Target

2022 Achievement Status

2023 Target

2030 Target

1. Completion rateof interest raterisk control report
calculation
2. 100% completion rateof credit rating model
veriﬁcation
3. 10% renewal rate ofthe deﬁnition table ofthe operational riskbottom layer structure

1. Calculate the average duration,
time-weighted DV01, and interest
rate risk exposure of various
types of bonds held by the entirebank, with a 100% completionrate, serving as a reference forthe ﬁnancial trading department
to adjust the risk avoidance
positions.
2. The credit rating model includes
Probability of Default (PD),
Loss Given Default (LGD),
and Exposure at Default (EAD)models. Both pre-line andperiodic veriﬁcation are carriedout according to the schedule,with a 100% completion rate.
3. Renewal of the risk structure andcontrol structure deﬁnition tableof the operational risk base layer,with a renewal rate of 10%.

1.Increase the precision of the
management mechanism for
asset and liability allocation by50%.
2. Increase the efﬁciency of capital
calculation by 30%.
3. Operational risk key indicators
update increased by 10%.

1.Build Asia's best market risk
management team.
2. The risk weight applied to thecredit risk exposure of capital
proposals decreased by 20%.
3. Improve cross-portfolio
management efﬁciency by 80%

31

Our Story

Journey to Net Zero

Banking for Better

Building Resilience

Our People

Seeking for Common Good

Climate change
Strategy** Respond to GRI3-3c Policy or Commitment

Management Team /compensation linked
to material issue

Key Performance
Indicator (KPI)

2022 Target

2022 Achievement Status

2023 Target

2030 Target

Address potential risks
caused by climate change,
establish evaluation
mechanisms and appropriate risk management
measures, and strengthen
management and response
capabilities.

Chief Risk Ofﬁcer /10%． CDP performance． Carbon reduction
target achievement． Education andtraining transparencyrate． Align with the guidance of themain regulatory authorities
to review and revise climatechange risk-related management
mechanisms.
． Assist the Banking Association in
discussing climate risk stress tests
and completing trial evaluations． The Financial Supervisory
Commission and its subsidiary
E.SUN have revised orreviewed climate change
risk-related management
mechanisms.
． Completed research on
climate risk stress tests andcompleted calculations, withplans to disclose in 2022 in
Chapter 2 towards Net Zero

． Maintain a CDP climatechange performance of A- orabove.
． Scope 1, 2, and 3 carbon
emissions comply with SBT.
． Over 90% of new employees
complete climate change
education and training． Achieve SBTi scope 1,
2, and 3 phased carbon
reduction targets.
． Over 90% of employees
have received climatechange education andtraining

Establish and implement
environmental protectionand energy-saving culture,
reducing operating costs

Environmental
Sustainability Team
Leader / 30%

Control operating
environment indicators,
carbon emissions, water
consumption, and waste

Based on 2020 as the baseline
year,total carbon emissions
decreased by 8.4%;based on
2016 as the baseline year,water
consumption per unit of revenue
decreased by 13.3%; waste per unitof revenue decreased by 33.3%.

Based on 2020 as the baseline
year,total carbon emissions
decreased by 10.4%;based on
2016 as the baseline year,water
consumption per unit of revenue
decreased by 16.1%; waste perunit of revenue decreased by
33.3%.

Based on 2020 as the baseline
year,total carbon emissions
decreased by 12.6%;based on
2016 as the baseline year,water
consumption per unit of revenue
decreased by 15.6%; waste perunit of revenue decreased by
38.9%.

Based on 2020 as thebaseline year,total carbon
emissions decreased by
42%;based on 2016 as
the baseline year,water
consumption per unit ofrevenue decreased by
31.1%; waste per unit ofrevenue decreased by
77.8%.

Review the proportion ofrenewable energy use
based on the purchaseamount of the renewableenergy and the usage
amount of the renewableenergy.

Renewable energy purchase ratio
reaches 20%

Renewable energy purchaseratio reaches 22.6%

Increase the use ofrenewable energy throughcooperative procurement,
self-built solar energy, andpurchase of renewableenergy certiﬁcates, improving
operational resilience.

32

Renewable energy usage ratio
reaches 30%

Domestic sites achieve
100% renewable energy
usage ratio

Our Story

Journey to Net Zero

Banking for Better

Building Resilience

Our People

Seeking for Common Good

Information Security and Personal Data Protection
Strategy*
・ Continuously obtaincertiﬁcations oﬁnternational
standards, including
information security, personal
data protection, and business
continuity.
・ Establish a sound governancesystem and information security
defense structure, cultivatea good sense of information
security, demonstrate
information security resilience.

Management Team /compensation linked
to material issue
Chief Information
Security Ofﬁcer /100%

Key Performance
Indicator (KPI)
・ Number ofsuccessful
security incidents
involving customer
intrusions.
・ Obtain international
professional
certiﬁcations.
・ Complete theconstruction of
a Breach andAttack Simulation
system(BAS).
・ Complete thesecurity diagnosisof E.SUN's andits subsidiaries'
infrastructure.

* Respond to GRI3-3c Policy or Commitment

2022 Target

2022 Achievement Status

2023 Target

2030 Target

・ The number of successful
cybersecurity incidents caused bysuccessful hacking is 0.
・ Consumer ﬁnance business obtains
BS10012:2017 Personal Information
Management certiﬁcation.
・ E.SUN Securities obtains ISO/
IEC27001:2013 Information Security
Management System certiﬁcation.
・ Set a schedule for E.SUN to obtaincerﬁcations of ISO22301:2019
Business Continuity Management
System and ISO27701:2019 Privacy
Information Management System.
・ Develop at least 2 BAS security
tools technical scenarios.

・ In 2022, there were no cybersecurity
incidents caused by successful
hacking.
・ E.SUN consumer ﬁnance business has
obtained BS10012-2017 certiﬁcate on
October, 2022.
・ E.SUN Securities has obtained
ISO27001:2013 certiﬁcate on
November, 2022.
・ E.SUN initiated the implementationof ISO22301:2019 BusinessContinuity Management System andISO27701:2019 Privacy Information
Management System project on June
10, 2022.
・ Completed the developed of Path
Travelsal and XSS technical scenariosof BAS systems.

・ The number of successful
cybersecurity incidents caused bysuccessful hacking is 0.
・ New trust business and digital personalﬁnance business have obtained
BS10012-2017 Personal Information
Management certiﬁcation.
・ E.SUN's Personal Internet Bankand MobileBank have obtained
ISO22301:2019 Business Continuity
Management System andISO27701:2019 Privacy Information
Management System certiﬁcation.
・ Establish the Breach and Attack
Simulation system. Also complete theinfrastructure security health diagnosisof E.SUN Financial Holdings and its
subsidiaries.

・ The number of successful
cybersecurity incidents causedby successful hacking is 0.
・ E.SUN and E.SUN Securities
complete the ISO/IEC27001:2022
information security management
system update and continue toobtain certiﬁcation.
・ Establish a consistent personal
information management system
for E.SUN Financial Holdings
and its subsidiaries, continue
to improve the supplier risk
management system and zerotrust architecture.

Inclusive Finance
Strategy*
Promote inclusive ﬁnancial policies,
enable individuals or businesses
from diverse backgrounds toaccess suitable and affordable
ﬁnancial services on the basis of
openness, equality, and diversity.
By eliminate inequality, and foster
inclusive ﬁnancial.

Management Team /compensation linked
to material issue
Executive Ofﬁcer
of Retail Banking /20%

Key Performance
Indicator (KPI)

2022 Target

2022 Achievement Status

2023 Target2

2030 Target

Solve the issue of limited
ﬁnancing for small
businesses with annual
revenue below 50 million,
and assist individuals
or businesses withsigniﬁcant social impact
in their local communities.

・ Small business loanbalance of 108 billion NTD
・ New ventures, local
revitalization, social
enterprises, and youth
entrepreneurship
activation funds, etc.,
have provided loans to
4,200 households.

・ Small business loan balance of 104.1 billion
NTD 1
・ New ventures, local revitalization, social
enterprises, and youth entrepreneurship
activation funds, etc., have provided loans to
4,270 households

・ Increase the number of small business loan
appropriation by 4,000
・ Increase the number of appropriation of
New ventures, local revitalization, social
enterprises, and youth entrepreneurship
activation funds, etc., by 1,300

・ Increase the number of small
business loan appropriation
by 6,000・ Increase the number ofappropriation of New
ventures, local revitalization,social enterprises, and youth
entrepreneurship activation
funds, etc., by 1,800

Provide innovation andfriendly ﬁnancial service
for disadvantaged,
handicapped or elder
customers through digitaland barrier-free ﬁnancial
service.

1. Establish visually impaired
voice ATM and sign
language video ﬁnancial
services.
2. Promote friendly ﬁnancial
service on digitalchannels.

1. Establish 99 visually impaired voice ATMs.
2. Set up sign language video service without
appointment at every branch.
3. E.SUN bank ofﬁcial website's portal obtained
conformance level AAA; E.SUN mobilebanking offer ATM veriﬁcation code toensure transaction security for hearingimpaired customers.

1. Add 150 visually impaired voice ATMs (atleast one in each branch)
2. Formulate A, B, and C grades according
to the barrier-free branch facility services,
all of the branches are C grades in 2022.
Complete 8 branches to A grades and 13
branches to B grades in 2023.3&4
3. Optimize E.SUN bank ofﬁcial website's selfservice information.

1. Replace all ATMs with visually
impaired voice ATMs.
2. Complete 40 branches to A
grades and 97 branches to B
grades in 2030.
3. Continuously optimize digitalchannels and offer accessible
ﬁnancial service.

Note 1. The regulatory requirements imposed by the supervisory authority on corporate loan of residential properties, land, and idle land have led to a more stringent credit assessment, affecting the willingness to apply for small business loans.
2. According to the World Bank, Financial Inclusion refers to providing SB with useful and affordable ﬁnancial services. Therefore, the targets have been adjusted to the annual increase in loan appropriation.
3. The barrier-free facilities in branches are limited by building structure and regulations, so it cannot be improved to A-grade in all of the branches.
4. 6 indicators: (1) Barrier-free ramp, (2) Barrier-free negotiation room, (3) Wheelchair charging station, (4). Customer service phone and QR CODE that meets the wheelchair height, (5). Barrier-free parking space, (6). Barrier-free toilets. The branch will be awarded
1 point for implementing each of the item above. A-grade: 5-6 points, B-grade: 4 points, C-grade: less than 3 points.

33

Our Story

Journey to Net Zero

Banking for Better

Building Resilience

Our People

Seeking for Common Good

Compliance with laws and regulations
Strategy*
Embed the concept ofcompliance with laws
and regulations in thehearts of managers andemployees, emphasizingthat all busi-ness operations must not exceed
the risk limits, and allservices must not exceed
the legal bounda-ries,
achieving zero trust inoperational processes
and zero tolerance forrisk and regulatory violations.

Management Team /compensation linked tomaterial issue
Chief ComplianceOfﬁcer / 100%

* Respond to GRI3-3c Policy or Commitment

Key Performance
Indicator (KPI)． Implementationof education andtraining.
． Participation rateof compliancetesting for
employees.
． Self-assessment
item updates andimplementation
effectiveness.
． Timeliness,
implementation,
and accuracyof compliancetracking forms.

2022 Target

2022 Achievement Status

2023 Target

2030 Target． Establish a compliancemanagement system tointegrate domestic and foreigncompliance operations, reducelabor costs, and improve
compliance management
efﬁciency.
． Assist in promoting the principleof fair treatment of customers,
developing business while
protecting customer rights.
． Continuously implement
compliance education andtraining and conduct compliancetesting for the entire bank.
． Continuously engage in oneon-one online exchanges withoverseas units.

． Compliance man-agement system project is inprogress.
． The principle of fair treatment of customers is
one of the key compliance promotion themes
this year, and the "E.SUN Fair Treatment of
Customers Education and Training Program" hasbeen established. Each busi-ness unit provides
appropriate friendly services and measures for
elderly and disabled customers, speciﬁcally
implementing fair treatment of customers.
． Provide compliance teaching materials to each
unit for education and training every month, andconduct a bank-wide compliance test in May.
． According to the inspection plan, conduct oneon-one online inspections with Tokyo Branch,Hong Kong Branch, Singapore Branch, Australia
Branch, and Chinese subsidiaries.

． Complete the construction of
the compliance management
system in the fourth quarterof 2023, strengthen themechanisms for law
dissemination, consultation,communication, and reporting,
improve the internal efﬁciency
of compliance, and reduce theworking hours of employees.
． Continuously implement
compliance educationand training and conduct
compliance testing for theentire bank.
． Continuously engage in oneon-one on-site or online
exchanges with overseas
units.

． Continuously improvethrough education,
training, and testing toestablish a proactive
risk culture anddeepen the overall
compliance awarenessof management andemployees.
． Utilize legal compliancemanagement systems
and regulatory
management systems
as tools to enhance
management
efﬁciency and ensure
adherence to laws andregulations.

Talent Attraction and Retention
Strategy*
Using OurOwn Hands
to Create
Our Own
FutureManagement Team /compensation linked
to material issue
Chief Human
Resource Ofﬁcer /40%

Key Performance
Indicator (KPI)

2022 Target

2022 Achievement Status

2023 Target

2030 Target

Employee
Engagement

Maintain employee
engagement above 95%． 85%． Unachieved. Profit recession in 2022 due to interest
rate hikes and market volatility impacted variable
pay for some employees, and the new performance
evaluation system expanded reward differentiation,
so the survey results reflected these internal andexternal factors. After the survey, E.SUN formulated
improvement plans and held a company-wide
session to respond to employees' concerns.

． Maintain employee engagement above 90%． E.SUN encourages employees to express
their feelings and opinions diversely.
Additionally, the new performance evaluation
system will differentiate employee rewards.
Therefore, E.SUN referenced industry peers
to adjust the target.

Maintain employee
engagement above 90%

Talent Retention
Rate

Talent Retention Rate
Maintains Above 90%

91.10%

Talent Retention Rate Maintains Above 90%

Talent Retention Rate
Maintains Above 90%

High-Performance
Talent Retention
Rate

High-Performance Tal-ent
Retention Rate Maintains
Above 95%

95%

Highly efficient talent reten-tion rate maintained
above 95%

Highly efficient talentretention rate maintained
above 95%

Percentage offemale managers

Maintain the percentage offemale managers at 39%
and above

The percentage of female managers is 40.85%

Maintain the percentage of female managers at
41% and above

Maintain the percentage
of female managers at
45% and above34

Our Story

Journey to Net Zero

Banking for Better

Building Resilience

Our People

Seeking for Common Good

Corporate Governance
Strategy*
Continuously
strengthen the
Board's functions,enhance themanagement
team's leadership,value shareholder
rights protection,and ensure
accurate andtransparent
information

Management Team /compensation linked tomaterial issue
Corporate GovernanceOfﬁcer / 100%

* Respond to GRI3-3c Policy or Commitment

Key Performance
Indicator (KPI)． Board functions． Informationtransparency． Shareholder
participation

2022 Target

Achievement Status

2023 Target

2030 Target． Continuously review the
Board's performance
evaluation indicators, adding
qualitative indicators with
foresight and strategic
signiﬁcance.
． Strengthen the disclosureof corporate governanceinformation on public
information observation
stations and subsidiarywebsites.
． Pre-process related preplacement operations forthe next Board structure
planning and diversiﬁed
conﬁguration.

． Newly added board members should actively assist
and guide the establishment of clear boundaries,
deﬁning the roles, functions, and responsibilities ofeach line of defense, and incorporating speciﬁc risk
items into the overall board performance evaluation
content.
． Continuously strengthen the transparency of corporate
governance information on public information
observation stations and subsidiary websites, andregularly update relevant information.
． Arrange independent directors with expertise andin line with E.SUN's corporate culture, management
philosophy, and specialist leadership system
according to the company's industry characteristics
and future development strategies, regularly evaluate
and report on the composition of E.SUN's board
structure and selection plan.

． In accordance with the
newly revised "Corporate
Governance Best PracticePrinciples", regulate thecontrol measures for stocktransactions during theclosed period and establish
a post-event veriﬁcation andconﬁrmation mechanism.
． Implement the re-election of
directors and the handlingof the ﬁrst-term training for
new directors.
． Commission an external
independent professional
institution to carry out
the "Board Performance
Evaluation" operation.

． Refer to the company's phased
sustainable development strategy,
integrate and formulate thecompany's governance upgrade
plan for advanced deployment.
． Continuously optimize thecompany's governance culture
according to the policies of thecompetent authority and refer tothe best domestic and foreign
corporate governance principles
and practices, review thecompany's governance structure,and promote the amendment ofrelevant regulations and adjustment
of disclosure information.

Employee Care and Friendly Working Environment
Strategy*
Creating asecond happy
home throughempathy andestablishing afriendly working
environment.

Management Team /compensation linked tomaterial issue
Chief Human Resource
Ofﬁcer / 20%

Key Performance
Indicator (KPI)

2022 Target

Achievement Status

2023 Target

2030 Target

Establish laborsystem that aresuperior to legal
requirements

Establishing labor regulations
superior to legal requirements

Providing 8 days of maternity leave, 8 days ofpaternity leave, and accompanying maternity leave,
which are better than legal requirements

Establishing labor
regulations superior to legal
requirements

Continuously improving employee careand health promotion measures, building
a friendly workplace environment.

Average employee
benefits expenses
for non-managerial
positionsNon-managerial positions
average employee beneﬁts
expenses over 1.43 million
NTD

1.36 million NTD (The main reason is that theoverall financial industry is affected by the global
financial market turmoil, the stock and debt market
performance has a significant impact, resulting in adecrease in salary expenses, and also affecting thedecline in employee benefits expenses.)Continuously improving thesystem to raise the average
employee beneﬁts expenses
standard.

Non-managerial positions average
employee beneﬁts expenses of 1.6
million NTD

DEI diversity of
employees2022 New Increase Target

Maintain the DEI diversity of employees at 4.28% or
above

Maintain the DEI diversityof employees at 4.5% or
above

Maintain the DEI diversity of
employees at 6% or above

35

Journey to
Net Zero

E.SUN takes the lead in committing to
net-zero emissions by 2050, establishesa climate change governance structure inaccordance with international standards
such as TCFD, PCAF, and SBT, andcontinually improves the management
mechanism for greenhouse gas emission,
climate change risks and opportunities. In
addition to continuously improving energy
efﬁciency, we also incorporate climate
risk thinking into business and adjust
our portfolio to a lower-carbon emission
structure by ﬁnancing renewable energy
and green buildings, phasing out coalrelated industries, and establishing aninternal carbon pricing mechanism;
realizing our goal of net-zero emissions
by 2050 one step at a time.

2.1 Climate and Environment
Governance Structure
2.2 Climate Related Risks andOpportunities
2.3 Opportunity Identiﬁcation
2.4 Risk Identiﬁcation
2.5 E.SUN Carbon Emissions
Structure

Our Story

Journey to Net Zero

Banking for Better

Building Resilience

Our People

100% renewableenergy use
in domestic
operation sites
by 2030

Phase out of
all coalindustries
by 2035

Seeking for Common GoodMoving Toward Net Zero GRI：2-23、2-24、2-25、3-3
E.SUN Bank continues to follow the TCFD
(Task Force on Climate-related Financial
Disclosures) framework: governance,
strategies, risk management, and metrics &targets to disclose climate-related information.
We have set comprehensive "coal phaseout" goals by 2035 and net zero by 2050.
Our scientiﬁc approach and robust risk
management are steadily moving us towards
our net-zero target.

Completed
SBT validationin 2022

100% green
certification of
owned buildings
by 2027

100% renewableenergy in all
operation sites
by 20402022

Joined initiative2014

Became the first
financial institution in
Taiwan included in DJSINet-Zeroby 2050• Became the first bankin Taiwan to receive
validation of sciencebased targets (SBT)2015

Adopted the Equator Principles• Joined TNFD

2017

• Joined RE 100

Became the first Taiwanese signatory company of TCFD

2019

E.SUN's actions on climatechange risk management
based on TCFD

• Conducted scenario tests forclimate change risks to estimate theﬁnancial impact.
• Stopped providing project ﬁnancing
to coal-ﬁred power plants• Issuing carbon-neutral credit cards

2018

Concluded the physical risk andtransition risk by business review andrisk identification2017

Became the first Taiwanese signatory company
of TCFD. Set up a working team to form
strategies on climate change and established amanagement mechanism for the board

37• Joined PCAF

2021

• Set the goal to become a company
with net-zero emissions by 2050
• Revised sustainable finance policy,
and ensured that sustainable
development is incorporated into
financial services and the risk
assessment process.
• Launched E.SUN ESG and
Sustainability Initiative

2020• Expanded measurement of the
impact of high-climate risk industries
in different scenarios• Compiled a GHG inventory andplanned to submit targets to the SBTi

2022

• Revised climate-related
and environmental
risk management
policy, enhancing its
capacity for managing
climate-related andenvironmental risk
• Expanded E.SUN ESG
and Sustainability
initiative, and led
over 100 outstanding
enterprises to advocate
for ESG sustainability
development• Combined TCFD and
TNFD frameworks topublish the Climate andEnvironmental ReportOur Story

Journey to Net Zero

Banking for Better

Building Resilience

Our People

Seeking for Common Good

2.1 Climate and Environment Governance Structure
Sustainable Development
Committee

Board Risk
Management Committee· Guiding and supervising climate
management policies, formulating
annual plans and strategic
direction, tracking and reviewing
the effectiveness of project andactivity plans.

· In charge of risk management, risk
measurement, risk supervision,deliberating on risk management
and execution, tracking
compliance with risk management
policies, and promoting risk
management culture.

Board of Directors
Boards of
Director· Approve climate risk management policy
and major decisions, and supervisionof climate risk response action plans toensure the effective operation of climate
risk management mechanisms.

General Manager
Compensation link: Sustainable Development Blueprint, Net Zero Target, ESG index performance

SeniorManagement

Sustainability Chief Office· Promoting ESG and climate strategy
development, coordinating themanagement of various climate andenvironmental goals, and major risk
event prevention, emergency response,and management.

Environmental
Sustainability Group
Execute Unit

Execute Unit

· Building and promoting
a sustainable operating
environment.

Chief Risk Officer· Integrate planning for risk management, supervising
the promotion and execution of risk managementrelated work, and handling overall risk-bearing
capacity and risk status.

Risk Management
Committee

Third Line of Defense· Perform
independent audits
on climate-relatedrisks

Second Line of Defense· Plan and implement risk
management mechanisms· Consolidate risk
management information
and report to the boardof directors and risk
management committee· Assist in developing
data, methodologies, andmanagement tools

Compensation link: Climate Risk Management
Mechanism Establishment

Sustainable
Finance Group· Designing and promoting
climate-related financial
products for E.SUN Bank.

Climate Change Group· Coordinating companywide climate andenvironmental policies andmanagement mechanisms.

All Business Management Units

Compensation link: Sustainable finance business objective, SBT achievement rate

38

Risk Management Department· Planning and implementing climate risk
management mechanisms, evaluating andconsolidating climate risk management information,
reporting to the Board and RMC.
· Assisting in the development of data, methodologies,
and management tools and assisting relevant units
in effectively identifying and measuring climate risks.

First Line of Defense· Identify business risks· Assess and measurebusiness risks· Manage risks generated
by businessOur Story

Journey to Net Zero

Banking for Better

Building Resilience

Our People

Seeking for Common Good

2.1.1 Policy and Capacity building

In our quest to better incorporate climate issues into our corporate strategy, management structure, and operation process, E.SUN has appointed a sustainable development
committee and related task forces at the board level and became the first financial institution to appoint a Chief Sustainability Officer. E.SUN puts its climate culture into
practice starting at the governing level, drawing out a long-term sustainable development blueprint and cultivating green finance talents from within. We combine ESG andclimate into our development strategy to apply in internal decision-making, management processes, and operational scopes.

E.SUN FHC

E.SUN Financial Holding
Co., Ltd. Sustainable
Finance Policy

Establish a climate and environmental management culture

E.SUN Financial Holding
Company Risk Management
and Guiding Principles．Established sustainable development committee since 2011 with the chairman as convener1．Establish climate and environment related policies and procedures, and regularly report on progress.
．Arrangement of annual Climate and Sustainability education training for the Board members andSenior Management2

E.SUN Financial Holding Co., Ltd./
Subsidiaries Climate-Related and Environmental Risk
Management Policy

Cultivate climate and environmental finance specialists．The expertise allocation in climate and environmental finance includes about 40 people including
sustainable finance team, climate change team, and environmental sustainability team．Collaborating with TAISE to establish a Sustainable Finance Manager certification, to enhance ESG
and climate-related specialize, total 73 staffs passed the approval..
．E-learning and two-way bulletin help establish a common climate language for employees at alllevels. For new hires, climate risk-related information is included in orientation.
．The members of related project teams have certificates for ISO14064-1/2/3, ISO14067, PAS2060,
SCR*, CFA ESG*

E.SUN FHC Corporate Social Responsibility Best
Practice Principles

Sustainable
development
negotiation
guidelines

Guidelines for thePhase-Out of Coaland Unconventional
Oil & Gas Industries
of E.SUN Financial
Holding Company

E.SUN Bank
Climate-Related andEnvironmental Risk
Management Policy

E.SUN FHC
Corporate
SocialResponsibility
Guidelines for
Suppliers

Enhance climate and environmental risk assessment skills．Cooperated with consultants to introduce skills related to climate and environment, and establishedtransition risk and physical risk database．E.SUN became the first financial institution in Taiwan and the second financial institution in Asia tocomplete the SBT review．E.SUN joined PCAF in 2022 and adopted their methodology to evaluate financed emissions．Initiated a physical risk geospatial database project that combines scenario data. The aim is toprovide reference information for business processes and franchise location selection.

E.SUN Securities
Sustainable
development policy

Note 1: For information on climate related government results for the Board and senior management, please see E.SUN
FHC 2022 Annual Report pg37-43
Note 2: For information on climate related education training for the Board and senior management, please see E.SUN FHC
2022 Annual Report pg47-49
Note 3: SCR*, Sustainability and Climate Risk. CFA ESG*, Certiﬁcate in ESG Investing39

Our Story

Journey to Net Zero

Banking for Better

Building Resilience

Our People

Seeking for Common Good

2.2 Climate Related Risks and Opportunities"If finance won't move, the world won't move." - Inger Andersen (Executive Director of the United Nations Environment Programme)
Financial institutions play a vital role in guiding enterprises through transition. E.SUN holds the concept of "Double Materiality" and not only tackles the risks and opportunities
brought by climate change but also strives to lower the negative impacts on the environment and society. Leverage the influence of financing to aid our customers insustainable transition, and joining together with industry partners, government, and academia to build the better future for the environment.

Impacts on Climate and Environment

Change in Climate
Factors

Climate Related Risks
and Opportunities
Physical Risk

Temperature Change

Impacts to Value Chain
from Business or
Operations

Impacts on Businesses

Macro-economic

Suppliers

Market Risk

Owns Operations

Credit Risk

Real Estate &Equipment

Operational Risk

Investment

Liquidity

Lending

Reputation· Changing Demands· Material Price
Instability

Drought

Extreme Rainfall· Current & Emerging
Regulation, Legal Risk
· Market Risk
· Technology &Reputational Risk

Micro-economic· Material Price
Instability· Asset Value· Profit Change &· Increased Lawsuits· Activity/Value· Supply Chain
Interruptions

Non-financial Impacts

Typhoons

Impacts and Dependencies

Sea-level Rise

Transition Risk

Financial Impacts· Chronic· AcuteTransmission Pipeline(Impact on Businessand Society)

Opportunities· Resource· Utilization Rate,
Market, Energy
Source, Resilience,
Products andServices

Impacts on Climate and Environment

Guide enterprises to transition through thePower of Finance40

Business Growth &Innovation

Our Story

Journey to Net Zero

Banking for Better

Building Resilience

Our People

Seeking for Common Good

2.3 Opportunity Identiﬁcation
the industry. The financial industry must
exert positive influence to direct capitalto environmentally friendly industries,
such as green energy, electric vehicles,
green steel, hydrogen energy, andsustainable agriculture. E.SUN actively
develops and supports the strategies of
the authorities for responsible finance,
green finance, digital finance, and otherrelated businesses to assist customers
in the low-carbon transformation andsupport the development of low-carbon
technologies, creating a second wave ofgreen finance growth for our company.

In the "2050 Net-Zero Pathway andOverall Strategy", Taiwan's government
announced that it planned to invest
NT$900 billion in reducing emissions
before 2030. In 2023 public sector ispreparing a net zero budget of NT$68.2
billion, and it is estimated will accelerate
about NT$4 trillion of private investment
between 2023 to 2030. At the sametime, the FSC stated that the vision of its
Green Finance Action Plan 3.0 publishedin September 2022 is to "integrate
financial resources and support net-zerotransformation". It will gradually promote
disclosure and emissions reduction in

Opportunity / Potential Impact

1 Reduce water consumption

Resource
Utilization Rate

2 Digitize processes to reduce

paper use

Energy Sources

to reduce dependence on
fossil fuels and sensitivity tocarbon prices, thus loweringgreenhouse gas emissions

Short

Longevity

4 Develop low-carbon products

5
Products andServices

4

4

6
3

7 8

2

2

6 Expand the customer basethrough innovative green
financial products

1

Medium5 Digitalize convenient financial

services, improve customer
satisfaction, and reduce thecosts required for services

53and services, support netzero policies, assist customers
in transitioning, and createbusiness opportunities

MediumMediumMarket7 Green Industry andInfrastructure investment
opportunities

1

Response Measures

Medium

3 Utilize renewable energy

High

Degree of Impact

and waste, improve energy
efficiency, and lower costs

ImpactPeriod•Replace high-energyconsuming equipment
to save costs•Develop green buildings
to enhance energy
efficiency•Use renewable energy•Develop green financial
products (see P.43)•Raise employee
awareness on climatechange througheducation, training, andinternal announcements•Establish a management
organization (see P.38),
revise climate change
risk management
policies, and strengthen
E.SUN Bank's
sustainable financepolicies to enhance
management systems

Medium

8 Improve the ability to respond

Low

1

2

3

Probability

4

5

ResilienceHigh

to climate change for more
efficient risk management andseizing opportunities

Longevity

Time frame deﬁnition:short-term is within one year, medium-term is between one and ten years, and long-term is over ten years.

41

Our Story

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Building Resilience

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Seeking for Common Good

2.3.1 Response Strategy and Financial Plan
Benchmarking

Climate-related
Opportunities

Resource Utilization Rate

Internal Strategies and Objectives

Current Actions and Outcomes・ Reducing absolute carbon emissions of Scopes 1 & 2 by 42% by
2030 compared to the 2020 baseline
・ By 2025, reduce water consumption in revenue by 20%, revenue
waste by 56%
・ By 2030, the domestic operating sites of E.SUN will use 100%
renewable energy
・ By 2040, all operating sites of E.SUN will use 100% renewableenergy・ Establish rainwater recycling and water-saving devices,
promote proper water-saving concepts and conserve
water resources
・ Implement waste sorting, recycling, and reusemanagement, and promote paperless operations
・ Replace high-energy consuming air-conditioners andlighting equipment
・ Introduce ISO 50001 to strengthen energy management
・ Purchase green electricity and install solar panels on
E.SUN-owned buildings to increase the proportion ofrenewable energy use

・By 2030, E.SUN aims to be the sustainable partner for enterprises
and the best sustainable partner for customers
・In line with Taiwan's 2050 net zero emissions pathway, strategies,
and the IPCC AR6 report, E.SUN Bank will continue to deepen thescope and scale of green products

・ Promote renewable energy, green buildings,
sustainable bonds, and other green financial products
to assist in business development and customer
management
・ Through negotiation, ESG sustainability initiatives,and advisory services, E.SUN Bank aims to create
positive financial impact and deepen connections withcustomers and sustainable partners

・Actively participate in government and international organizations'sustainable and climate change-related initiatives to strengthen
climate change response capabilities
・Achieve 100% green building certification for owned domestic
buildings by 2027
・Benchmark international standards (such as CDP, DJSI, etc.) andcontinuously improve, reaching net-zero emissions by 2050

・ Establish management structures, revise internal
climate change-related regulations, integrate into daily
operations and business development, and enhancerisk management and opportunity grasping capabilities
・ Participate in regulatory and industry association
climate-related projects to help formulate related
regulations, such as Taiwan's sustainable classification
standards, banking association climate change risk
management projects, and climate change stress test
projects amongst others
・ Cultivate in-house sustainability and climate talent, andplan to subsidize relevant certifications
・ Improve mitigation capabilities by obtaining green
building certifications for new constructions, existingbuilding enhancements, and operations management

Energy Source

・Paris Agreement
・Taiwan 2050 Net-zero Emissions Pathway
・Taiwan Green Finance Action Plan
・Corporate Governance 3.0 – Sustainable
Development Blueprint
・SBTi Science-based Carbon Reduction
Targets
・Principles for Responsible Investment(PRI)・Principles for Responsible Banking (PRB)
・TCFD
・TNFD

Products and Services

MarketResilience42

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2.3.2 Climate-related Product and Service Overview
Personal FinanceZero Carbon Credit Card
． All series of credit cards issued since 2019 have achieved
carbon neutrality.
． From 2019 to the end of 2022, a total of 4,393 tons ofcarbon dioxide have been offset.
． With a cumulative issuance of 4.8 million cards, it isexpected that all credit cards in force will be converted tozero carbon credit cards by 2025.
Digital e-Card． In 2022, the market-leading virtual card "Digital e-Card" waslaunched, with a 99.5% online application rate.
． After approval, no physical cards are provided, reducing
the carbon emissions generated by the production processof each physical card by 900 grams.
． The annual reduction in carbon emissions is about 70.5
tons.
Inclusive ﬁnancial innovation services． Online platforms; electronic bills / statements; going
paperless and reducing the GHG emission generated"Smiling Polar Bear" ﬁnancing project． In 2022, individuals who purchase energy-saving home
appliances, electric vehicles, and install household green
energy power generation equipment etc., are offeredfinancial service discounts． A preferential interest rate or fee discount is provided tothose whose who provide mortgage collaterals that satisfy
the criteria for the Green Building Mark of the Taiwan
Architecture & Building Center, totaling 760 units, orNT$11.3 billion*． 2025 target annual allocation NT$11 billion* Green buildings mortgage include "purchase loans" and"working capital loans."

Corporate FinanceGreen loans． To support business sustainability and extend green loans
for green projects to assist enterprises in investing in clean
energy, energy storage systems, water resources andenvironmental pollution control, environmental protection
products or equipment, and green buildings, etc.
． Balance reached NT$53.7 billion in December 2022.
ESG Linked Loans． Encouraging enterprises to set and achieve ESG goals
and providing them with preferential financial services． Balance reached NT$40.6 billion in December 2022.
Sustainability initiative． Invite like-minded business partners to focus onsustainability and joint carbon reduction, and then takepractical actions to build a sustainable ecosystem.
． From 2021 to September 2022, the "E.SUN ESG
Sustainability Initiative" was launched, and 133 companies
joined the advocate.
Sustainability consulting services． Combining internal expert team and external professional
consultants, assist corporate customers in developing ESG
through consulting services.
． Conduct consultations and exchanges on sustainability
and climate, recommend carbon reduction steps,
encourage and assist companies in conducting
greenhouse gas inventory.
Sustainability Savings． Since August 2022 invited the 133 companies of the ESG
Sustainability Initiative to participate.
． Combining the needs of savings, financing and investing
to further pursue sustainable development. Balancereached NT$1.03 billion in 2022.

Medium and Large-sizedEnterprises /Financial Institutions
Responsible investments． Invest in certified green bonds, social bonds,
and sustainability bonds.
． Balance reaching NT$22.5 billion.
． 2025 target balance to reach NT$32 billion.
Sustainability bond issuance． Channeling funds to society and environment
friendly industries through issuance ofsustainability bonds.
． Total issuance reached NT$18.9 billion.
Sustainability bonds underwriting． Supporting enterprises in raising funds forsustainability causes and assisting them in
issuing sustainability bonds.
． Underwriting balance reached NT$23 billion.
Hedging and consultation services forsustainability-related projects． Supporting environmentally friendly projects
with our financial services by providing
hedging and consultation services forsustainability-related projects, e.g., financing
for offshore wind power projects and solar
power projects.
． Hedging services provided reached NT$18.6
billion.

Note: An overview of E.SUN's climate-related products as of Dec. 2022 is as shown above. For more detailed information on each product please see the contents of the "Banking for Better" chapter.

43

Our Story

Journey to Net Zero

2.4 Risk Identiﬁcation
Apart from affecting our operations, thegreater risk posed by climate change is theimpact on lending and investment assets,such as credit deterioration for loans or pricefluctuations in investments. Climate change
and low carbon transition pose varying
levels of impact at different times, affecting
the existing financial risks (such as credit
risk, market risk, and operational risk). E.SUN

Banking for Better

Building Resilience

Our People

Seeking for Common Good

has assessed short, medium, and longterm climate-related risks, and reviewed
our internal management process andthe expected lifetime of the assets. These
assessments are integrated into our existingrisk management framework and serve as
a way to monitor climate change impacts
regularly and formulate new measures.

Transition Risk Factor / Potential Impact
Policy and
Legal

1 Carbon tax/fee has impact on the company, customer and client．

Technology

3 Substituting low-carbon and environmentally friendly products for existing．
products and services increase uncertainty in revenue and investment

Market4 The stranded assets of high carbon emission and high natural-environmental．
risk rattling the market
5 Price rising in water, electricity, and raw materials increases cost．

Reputation．
6 Customers' preferences change; decision-making for operations,investment and financing requires considering ESG factors
7 Litigation risks generated by environmental issues．

．
2 Climate and Environmental policies, laws, and financial supervision
become stringent

High
5

Degree of Impact

4

Physical Risk Factor / Potential Impact
Acute．
8 Natural disasters such as typhoons, floods, and water stress impairs assets
or collaterals and interrupts operations．
9 The natural resources depletion and environmental degradation impact
operation and business model

1

10
8

3

6

2

4
9

2

7

3

5

11

1

Chronic

C, which may cause changes in． Global temperature rises by more than 1.5°
10

climate patterns and sea level, impacts the economy and company operations,
impairs assets, or causes early replacement of assets
11． Species loss and degradation due to soil, water and ocean contamination

44

Low

1

2

3
Probability

4

5

6

High

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2.4.1 Impact Assessment
 Correlation between physical risks and traditional risks
Business
categories

Risk Impact

Lending andInvestment•Affected by climate change or natural environmental factors (such as strong typhoons, heavy rain, landslides, and debris flows),
leading to a decrease in collateral value or supply chain disruptions affecting customer operations.
•Climate change and the degradation of natural environmental resources affect macroeconomic factors (e.g., GDP,
unemployment rate, insufficient natural resources) or real-world risk events, resulting in adverse effects on investment targets(revenue decline, additional operating costs, supply disruptions), and causing fluctuations in investment position prices.

Own Operations
Policy and
Reputation
Suppliers

Risk Impact Level

Major Risk
Category

Short-term

Mediumterm

Long- term

Credit Risk

Low

Moderate

Moderate

Market Risk

Low

Moderate

Moderate•Operational locations are affected by extreme weather and natural environment resource factors (such as strong typhoons, heavy rain,water resource pressure), causing damage to buildings, equipment, or negative effects on operations.

Operational and
Reputation Risk

Low

Low

Moderate•Natural disasters and environmental factors affecting the operation of infrastructure (such as electricity, networks, etc.) may affectservice provision.

Operational Risk

Low

Low

Moderate Correlation between Transition Risks and Traditional risks
Business
categories

Risk Impact

Lending
Investment•In response to the low-carbon economic transition, the imposition of carbon taxes/fees and carbon tariffs have negative
financial impacts on high-carbon-emitting industries, enterprises unable to reduce carbon emissions or phrasing out by green
technology, and their related supply chains. Environmental assessment factors influence factory development or operations, or
products face boycotts.
•High-carbon industries face increased operating costs (due to carbon cost burdens) and the risk of failure during the business
transformation process; environmental issues impact specific industries, leading to investment position price fluctuations.

•The levying of carbon-related costs and increased investment in energy conservation and carbon reduction (such as the use ofrenewable energy and energy-saving equipment) lead to increased resource input.
•Climate change-related regulations and policies are common sources of transition risk, such as government legislation imposing
carbon taxes or fees; applying stricter energy efficiency standards to residential and commercial buildings; and imposing legal
Own operations、
disclosure obligations for carbon emissions. When assessing policy and regulatory risks, it is necessary to consider not only the
Policy andpotential direct impact on operations, but also the indirect potential impact on the supply chain.
Reputation•Reputational risk is closely related to the perception of customers or the public about whether a company is committed to lowcarbon transition and upholding its environmental sustainability commitments. If a company fails to fulfill and implement its
climate change commitments, it may affect the perception of stakeholders (including its upstream and downstream industry
chains) and result in negative reputations for the company, leading to the loss of customers, consumers, or supplier support,
affecting the company's ability to obtain funds, or even the ability to recruit and retain employees.
Suppliers

Short-term

Mediumterm

Long- term

Credit Risk

Low

Moderate

Moderate

Market Risk

Low

Moderate

Moderate

Operational, Legaland Reputation Risk

Low

Low

Moderate

Operational Risk

Low

Low

Low

•Manufacturers transfer investment and carbon-related costs due to transformation, or adjust service models due to legal
restrictions, which increases the cost of payments.

Note: Low risk: small rise in costs with minor impacts on ﬁnances.
Medium risk: Non-performing loan and asset price movement risk increases with potential to affect revenue growth.
High risk: ﬁnanced assets PD risk increase, invested assets face price instability, extreme weather events affect owns operations, may cause revenue loss.

45

Risk Impact Level

Major Risk
Category

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2.4.2 Risk Management Procedures

Domestic and international risk management guidelines (e.g., UNEP
FI, SASB are referenced) to identify industries more susceptible
to climate change impacts for external disclosure and internalrisk decision-making reference. Adopt risk-based management
mechanisms. At December 2022, E.SUN's climate-sensitive
industries and exposure proportions are shown in the tablebelow, with the total proportion of climate-sensitive industry
investments and loans at 6.11%. We have set comprehensive"coal phase-out" goals by 2035 and net zero by 2050, utilize
science based methodology and resilient risk management toward
net zero target.

Identiﬁcation

Identiﬁcation

Reporting

Risk Management
Procedures

Measurement

Measurement． The CEO coordinates the
management of climate changerelated goals and achievements,
and related Task Unit reports
on climate change efforts to the
CEO intermittently.
． Report climate-related andenvironmental risk management
information to the board and
Risk Management Committee
regularly to have the superior
assessment of climaterelated and environmental risk
management circumstances atleast every six months.
． If climate and environmental
risks impact overall operations
or business conditions,
immediate appropriate
management measures aretaken and reported to the Board.
． Disclose information following
climate change-related
guidelines.

Seeking for Common Good

2.4.3 Identiﬁcation and Management of
Climate Risks by Industry． Identify the potential impacts and risk factors of climate changerelated risks on company operations and investment, and enhance
the completeness of identification by regularly focusing on relevantlaws, guidelines, and literature.
． Strengthen the identification of high climate change-related riskenterprises in the lending process.
． Incorporate climate change-related risks and opportunities into thedecision-making process for securities investment and underwriting
business management and analysis.

ReportingOur People

Monitoring． Inventory greenhouse gas
emissions from investments
and loans.
． Assess the proportion ofclimate change-sensitive
assets.
． Regularly conduct scenario/
stress tests for physical andtransition risks to inform
strategy and risk management.

Climate-sensitive assets
Climate-sensitive Asset Classiﬁcation

Energy and Utilities

Transportation Industry

Materials and Construction

Monitoring． Establish indicators linking climate factors andreduce exposure when triggered.
． Implement science-based reduction targets (SBT).
． Adopting risk-based and differentiation
managements based on Climate and Environmental
risk assessment results

Agriculture, Food, andForestry Products Industry

46

Total Investment
and Financing

Fossil Fuels

0.35%

Power Facilities andUtilities

2.03%

Transportation Industry

0.89%

Petrochemical/
Chemical

1.67%

Metal Manufacturing/
Smelting

0.47%

Cement and Glass

0.20%

Agriculture, Forestry,
Fishing, and Animal
Husbandry

0.18%

Papermaking

0.32%

Climate-sensitive assets

6.11%

Non-climate-sensitive assets

93.89%

Total

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2.4.4 Climate Change Scenario Analysis

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SASB：FN-MF-450a.1、FN-MF-450a.2

 Portfolio Scenario Analysis

Scenario Analysis is a process used to assess probable future impacts under uncertain conditions. E.SUN identiﬁes risks and opportunities and assesses potential ﬁnancial impacts
from climate risks through the use of scenario (stress) testing to support our strategy planning and risk management. E.SUN Bank comprises over 97% of E.SUN FHC's assets.
Using methods and scenarios set out by the "Guidelines for the Conduct of Stress Tests by Domestic Banks", we analyzed our investment and ﬁnance portfolio and disclosed
relevant information as required by the FSC, further strengthening our risk management and information transparency.

 Scenario Setting
Category

Orderly Transition

Disorderly Transition

No Policy

Gradual and measured transition to Net-Zero globally by 2050

Delayed start but still reaches Net-Zero by 2050

Climate change brought on by lack of transition policies

Limit warming at 1.5℃

Limit warming at 1.8℃

Warming reaches 3+℃

Scenario
Description

Taking into account carbon emission intensity by country and industry, and carbon price impacts on finances
Transition Risk

Physical Risk

Overall Economy

NGFS Net Zero 2050 Scenario

NGFS Delayed Transition Scenario

NGFS Baseline Scenario

IPCC AR5 RCP 2.6

IPCC AR5 RCP 2.6

IPCC AR5 RCP 8.5

Taking in account GDP growth rate, Unemployment rate, and long term interest rate change in NGFS scenarios

47

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 Risk factors and methodology
Risk Factors

Assessment Methodology

Scope

Risk Factor and Loss Estimate(Expected Loss = PD*LGD*EAD)

Overall Economy (GDP Growth, Unemployment, Long-term Interest Rate)

Transition Risk

High

Level 5: e.g. Electricity and Gas supply

Risk Level

Revenue Loss from
Carbon Price

Carbon price revenue loss
ratio by industry risk level
Level 4: e.g. Metal manufacturing

Low

Country and industry
transition risk
．Orderly RCP 2.6．Disorderly RCP 2.6．No Policy RCP 8.5

Physical Risk

Level 3: e.g. Electronic parts manufacturing
Level 2: e.g. Retail, printing industry
Level 1: e.g. Wholesale

Credit rating downgrade bycountry and industry

Revenue loss ratio bybusiness location risk level

Work Suspension
Due to Heavy Rain

5
4
3
2
1

PD Estimate（Considering
Overall
Economy）

Domestic corporate
Loans, stock and bondinvestments
LGD Estimate

Risk Level

Flood Repair Costs

Water Shortage

Personal Loan Others

Overseas Corporate
Loans, Stock and bondinvestments

Collateral value decreaseby collateral location
Risk Level
5
4
3
2
1

Collateral Value
Impairment from flood

Note: Risk is categorized into 5 levels, level 5 being the highest risk

48

Personal LoanMortgage

EAD(Exposure atdefault)

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Seeking for Common Good Scenario Analysis Results
・Combining the results of corporate loans, personal loans, and investments, the greatest expected loss happens under Disorderly transition in 2050, representing 7.57%
of E.SUN FHC's base year (2022) net worth with E.SUN bank taking up over 97% of its net worth.
・Scenario analysis results using E.SUN bank's net worth and pre-tax income are shown in figure 1. We can see that greatest expected loss under 2050 disorderlytransition scenario, representing 7.80% of E.SUN bank's net worth.

Figure 1: Scenario Analysis Results

Physical and transition factor risk exposure level distribution

Expected loss as a percentage of base year net worth

Expected loss as a percentage of base year pre-tax income

General Enterprises

General Enterprises

Personal Exposure

Personal Exposure

Investment

Investment

5%

60%

4%
40%

3%

High Emission Sectors Physical and Transition risk factor
exposure risk level distribution

 High-emission sector

According to the “Greenhouse Gas Reduction and Management Act” set by
the EPA, there are 287 businesses in the first inventory batch that are subject
to emission reporting. E.SUN has 40 customers that are subject to emissions
inventory as of December 2022. The largest expected loss happens under the
Disorderly transition in 2050.

Expected loss of High Emission Sectors
Time

Scenario

100%

Orderly

Disorderly

No Policy

2030

176

257

253

244

2050

176

332

412

264

Transition Risk
Profit loss from
Carbon Price

Physical Risk
Revenue Loss

Physical Risk
Collateral Value
Impairment

80%
60%

Unit: million dollars

Baseline

2050 No Policy

Note: Net worth (Yellow) corresponds to the values on the left. Pre-tax income (Blue) corresponds
to values on the right.

2050 Orderly/
Disorderly

02030 No Policy

No Policy2050

02030 Orderly/
Disorderly

Disorderly
2050

20%

2050 No Policy

Orderly
2050

5
4
3
2
1
2050 Orderly/
Disorderly

No Policy
2030

Risk Level40%2030 No Policy

20%

1%

60%

2030 Orderly/
Disorderly

2%

Expected loss as a percentage
of base year pre-tax income

80%

6%

Disorderly
2030

Physical Risk
Collateral Value
Impairment

80%

All Scenarios

Expected loss as a percentage ofbase year net worth

7%

Orderly2030

Physical Risk
Revenue Loss

100%
100%

8%

0

Transition Risk
Profit loss from
Carbon Price

Risk Level

40%

5
4
3
2
1

20%
0
All Scenarios

49

2050
Orderly/Disorderly

2050
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Direct Operation Scenario Analysis
Climate risk for financial institutions are mainly from finance and investment positions. Direct operationtransition risks mainly effect water and electricity prices and cost of compliance, which have relatively
low impacts on finances. Physical risks are more likely to affect business operations and income; thus
direct operation analysis are mainly based on physical risks. In reference to the IPCC physical risk
analysis framework and suggestions from internal experts, a flood risk level analysis using hazards,
vulnerability, and operating location (exposure) is shown in the chart below. In considering operation
lifecycle, we mainly consider the timeframe before 2030 and 2050. Analysis results shows there are nohigh risk locations within this timeframe.
Heavy Rain
Probability

HighMediumFlood Risk Level
5
4
3
2
1

Low

Low

MediumHigh

Flood depth
Unit: Number of Sites

Scenario

SSP1-2.6

SSP2-4.5

SSP5-8.5

Scenario

2030

2050

End of Century (EoC)

2030

2050

End of Century (EoC)

2030

2050

End of Century (EoC)High Risk

0

0

0

0

0

0

0

0

4

High-Medium Risk

0

3

0

0

2

0

0

3

11

Medium Risk

6

10

6

6

3

6

6

6

12

Medium-Low Risk

21

14

21

21

22

21

21

18

0

Low Risk

140

140

140

140

140

140

140

140

140

50

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2.4.5 Climate Risk Management Measures

Based on the comprehensive climate change risk assessment results and climate change scenario (stress) testing analysis, E.SUN's management measures are summarized
in the following table.
Scope

Risk Factors

Management Measures / Adaptation Plans

Low Carbon
Transition

Reduce own operational andinvestment-related carbon emissions． Inventory carbon emissions from Scope 1 and 2 and plan mitigation measures (such as installing solar panels, using renewable energy, etc.)． Follow PCAF methodology for carbon inventory of investment and financing activities． Set targets and reduce carbon emissions according to SBTi

Investment

Stock and bond investments． Fulfill the responsibility of asset owners or managers by considering the corporate social responsibility performance of investment targets． Avoid investing in enterprises with direct or potential environmental and social impacts, such as coal mines or coal-fired power plants, andimplement responsible investment． Promote or assist enterprises in sustainable operation issue awareness and implement ESG actions through negotiation

CreditCorporate loans． Through green financing, support renewable energy projects, green buildings, green equipment, and other energy-saving and low-carbon
capital expenditures to help enterprises transition and respond to climate risks． Link credit conditions to enterprises' comprehensive performance in environmental, social, and corporate governance or sustainability
indices, encouraging enterprises to invest more actively in resources． Refer to the guidance of the Banking Association's Equator Principles 4.0 for corporate credit review． Include ESG considerations in the credit process to avoid funds flowing to high-carbon projects such as coal-fired power project financing

Real estate collateral loans． Regularly assess and monitor the potential risk of real estate value impairment caused by climate change, continuously improve thedatabase of physical risks, analysis methods, and scenario testing． Incorporate flood risk factors - hazard (e.g. heavy rainfall, increased typhoon frequency) and vulnerability (e.g. whether the area is prone toflooding) into the real estate collateral zoning standards, and set lending limits and loan-to-value ratios according to the zoning to control
potential loss risks． Regularly conduct mid-term management for high flood risk cases, add a special note to the system for real estate collateral located in highclimate risk areas with high loan-to-value ratios, and carefully assess collateral value and loan-to-value ratios． Refuse evaluations for collateral labeled as pollution-related sites, or those announced by government agencies as subject to the "Soil and
Groundwater Pollution Remediation Act"
． Strengthen review, inspection, appraisal of collateral, control of credit conditions, and raising of approval authority for collateral cases in highlandslide risk communities

Disaster response． Developed the "Emergency Response and Crisis Management Measures" based on the competent authority's "Financial Institution Disaster
Emergency Response Measures Manual Template" and operational overview to ensure operational continuity and organizational resilience.
． The "Continuous Information Service Management Regulation" takes into consideration power supply interruption and regional flooding
recovery． E.SUN Bank collaborates with external consultants, introduces AR6 scenario data, domestic disaster potential data, and analyticaltechniques, and conducts a physical risk assessment of its own properties (from 2030 to the end of the century) to plan 100% adaptation
measures for existing locations and to serve as a reference for selecting new locations. By 2025, high-risk operational locations should be
reduced to within 2%, and existing high-risk locations need to be vigilant or prepared early for heavy rain special reports, such as installing
floodgates, to reduce climate impacts through early monitoring and adaptation． E.SUN Bank implements sustainable procurement standards to manage suppliers． Established designs and measures to avoid greenwashing in the provision of green-related financial products and services, and sets up
internal mechanisms for control

Own operation

Supplier management

Compliance and reputation

51

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2.4.6 Differentiated Management of Industries

E.SUN incorporates climate change-related risks into its daily operations, differentiating its business as shown in the table below, actively managing carbon emissions fromfinancial assets, increasing green assets, reducing grey assets in investment and financing positions, guiding low-carbon transition through financial resources, exerting its
financial influence, and fulfilling global climate-related sustainable goals.
Management
MeasuresIndustry Management Description

Avoid． According "E.SUN Financial Holding Co., Ltd. Sustainable Finance Policy", Businesses involved in illegal logging, harming endangered wildlife, developing coal mines, or setting up newcoal-fired power projects should be avoided． Real estate collateral listed in the Soil and Groundwater Pollution Remediation Act should be avoided． According "Guidelines for the Phase-Out of Coal and Unconventional Oil & Gas Industries of E.SUN Financial Holding Company" accelerating the phase-out of coals, which include coalcompany (mining, power and infrastructure) and Unconventional Oil & Gas company (Tar Sands Shale Oil & Gas, Arctic Oil & Gas Ultra-deepwater Oil & Gas and Liquefied Natural Gas(LNG).

Strengthened
management． Equator Principles should be introduced to large-scale project financing in sectors such as electricity, oil and petrochemicals, and infrastructure for risk classification and management.
The projects should be carefully assessed for fulfilling social responsibility, proper environmental and social impact monitoring, and improvement planning. Analyze the practicalimplementation of climate-related physical and transitional risks, environmental pollution, and biodiversity issues on a case-by-case basis． Design differentiated measures to address industry-specific climate and environmental risks, such as carbon emissions, climate risks, biodiversity, toxic substance management, andwater resources． Integrate hazard and vulnerability of climate risk factors into real estate collateral zoning standards to manage credit business climate risks within jurisdiction divisions． Strengthen the review process for cases in high slope land disaster risk communities． Design mechanisms to encourage customers with environmental pollution penalties to improve their issues.
． Signed the Equator Principles and, according to Equator Principles 4.0, included climate change assessment as a necessary item in project financing

Actively
supports． Supports social innovation and local revitalization industries, providing customized financial services, financial counseling, and marketing resources, adding momentum to Taiwan's local
and national society movement towards SDGs
． Increase investment and financing amount for forward-looking economic activities or key strategies mentioned in the National Development and Reform Commission's 2050 net-zeroemission pathway, including: wind power/solar power, hydrogen energy, forward-looking energy, power systems and energy storage, energy conservation, carbon capture utilization andstorage, vehicle electrification and decarbonization, resource recycling and zero waste, natural carbon sink, etc.

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2.5 E.SUN Carbon Emissions Structure
E.SUN began taking carbon inventory of its service locations according to theISO14064 standard in 2014. In 2017 we expanded to 100% of all locations. The
inventory included Scope 1 direct GHG emissions (including emissions fromelectric generators, natural gas, company vehicles, and firefighting equipment)
and Scope 2 indirect GHG emissions from electricity use. The largest source ofemissions for financial institutions is investment and financing activities. E.SUN
adopted the Global GHG Accounting and Reporting Standard for the Financial
Industry issued by the Partnership for Carbon Accounting Financials (PCAF) in
2020 to take carbon inventory for our material assets. We used ESG reports and
CDP information published by our investees to calculate their GHG emissions.
In addition to the total emissions, we use carbon footprint and weighted averagecarbon intensity (WACI) metrics to evaluate our financed emissions. Carbon
footprint measures total carbon emissions per unit of exposure, which can help
us understand our portfolio alignment. WACI is calculated from investment
weights and carbon emission per unit revenue of investees, which can help
us interpret emission changes in our portfolio. In 2021 our WACI was 6.23
tons/million NTD. E.SUN continues to monitor the change in asset emissions
indicators to keep towards our mission of achieving net zero.

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E.SUN FHC GHG Emissions Timeline
2019

2020

2021

2022

Scope 1

2,455

2,399

1,857

1,844

Scope 2

22,44322,29922,105

20,294

Scope 3: Financed Emissions1

916,408

4,710,269

3,672,612

3,898,4641

Scope 3: Others

52,10053,71349,18156,015

Total (tons)

993,4074,788,679

3,745,755

3,976,6171

Scope 3 Portfolio Emissions Inventory
2019

2020

2021

2022

Financed Emissions (t-CO2e)

916,408

4,710,269

3,672,612

3,898,4641

Carbon Footprint2 (t-CO2e/$M)

95.36

69.64

47.88

51.981Inventory Coverage3 (%)

12.50%

73.69%

75.27%

75.68%1

PCAF Required Coverage(%)

100.00%100.00%100.00%100.00%1

Note 1: Emissions from investments and ﬁnancing activities for 2022 have been estimated based on theincreases or decreases in our total assets reported in our ﬁnancial statements.
Note 2: Financed Carbon Footprint = GHG emissions from investment and ﬁnancing companies / inventoriedbalance of investment and ﬁnancing companies
Note 3: Inventory Coverage = inventoried balance of investment and ﬁnancing companies / sum of FVPL,FVOCI, AC, loans, and discounted items
Note 4: Portfolio emissions for 2021 are inventoried using PCAF (2022) GHG Accounting and ReportingStandard. Second Edition. Inventoried results are veriﬁed (see Appendix 17 for details). Due tochanges in boundary, attribution factor, and emission data updates, the numbers presented here aredifferent from the numbers present in our "2021 Climate and Environment Report" published last year.

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2.5.1 Financed Carbon Emissions

E.SUN has analyzed its greenhouse gas emissions from investment and financing assets by asset class, industry category, and region. We calculated data quality according
to the PCAF methodology, overall data quality score in 2021 was 3.33 (1 being best and 5 being worst for data quality scoring) In accordance with the SBT, we have set
carbon reduction targets for different asset types, planned control mechanisms for high-carbon industries, and encouraged internal staff to increase interactions withproactively low-carbon corporate clients or investment targets, in hopes to contribute to a net-zero emission future through financial influence.
Note: Detailed information can be found in Appendix 11, Financed Carbon Emissions■ 75.5% Taiwan■ 51.9% Business Loans (Data Quality: 3.77)

Asset class
Distribution■ 10.1% N. America and Europe■ 15.7% Equity and Bonds (Data Quality: 1.36)■ 13.6% Sovereign Bonds (Data Quality: 1.08)■ 8.2% Power Generation Project Finance (Data Quality: 2.72)■ 7.9% Mortgages (Data Quality: 4.07)■ 2.7% Commercial Real Estate Mortgages (Data Quality: 4.00)

Industry Distribution■ 20.8% Electricity and Utilities■ 5.6% Others■ 16.6% Wholesale and Retail Trade■ 4.0% Metal■ 16.1% Manufacturing■ 3.8% Transportation■ 14.9% Sovereignty■ 1.7% Cement and Glass■ 9.1% Fossil Fuels and Chemistry■ 1.6% Finance■ 5.8% Electronics

54

Geographical
Distribution■ 5.1% Hong Kong■ 4.5% Others■ 3.9% Other Asia
■ 0.9% China

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2.5.2 From Low Carbon to Zero Carbon, Moving Towards a Net-Zero Transformation by 2050
Category

Risk factors

Scope 1

． Use of official vehicles, refrigerants,
natural gas． Base year: 2020

Scope 2

Scope 3

SBT goals
Reduction ratio:

92.7%

80.0%
60.0%
40.0%

2025

2020

(1) Power Generation Project
Financing Emission Intensity
94.4%

100.0%

100.0%
80.0%
60.0%
40.0%

60.0%
40.0%

20.0%
2025

2019

2030

(3) Emission intensity of commercial
real estate loans
100.0%

4.6%
2025

2019

2030

(4) Emission intensity of long-term loans
for general service companies
93.0%

80.0%

79.4%

60.0%

60.0%

2019

2025

2030

Percentage of loans to manufacturing
companies that have passed SBT
35.0%

40.0%

2019

2025

． Since July 2019, E.SUN has committed to notsupport coal-ﬁred power
generation project ﬁnancing, and by the end of 2021, no related balanceremains.
． Following SBT guidance, E.SUN gradually divest from coal-related andunconventional fossil fuel related activities since 2021. We aim to reduceﬁnance and investment exposure annually using the end of 2022 as
the baseline. The position should reach a 50% reduction by 2030 andcomplete exit by the end of 2035. By the end of 2022, we didn't holdunconventional oil & gas assets in the investment portfolio.
． In 2021, E.SUN joined the Science Based Targets initiative (SBTi),
setting a goal to reduce carbon emissions in line with a 1.5℃ target.
． In 2022, we introduced internal carbon pricing to our business portfolio,
combining E.SUN's attributed emissions with trusted international carbon
pricing to create an accessible carbon cost concept and use it as areference for business development.
． E.SUN will continue to drive sustainable development through ﬁnancial
initiatives and products, increasing its engagement with clients that haveadopted SBT, as well as through investments in green energy and green
building projects to help customers reduce their carbon footprint.

2030

Percentage of investments in companies
that have passed SBT
35.0%

30.0%

30.0%

31.5%

25.0%

25.0%

20.0%

20.0%

15.0%

15.0%

10.0%

10.0%

5.0%
0

0

100.0%

80.0%

40.0%

2030

(2) Emission intensity of long-term loans
for power generation companies

80.0%

10.34%

5.0%

2019

2026

0

2019

Other (procurement process, credit card
manufacturing and disposal process,employee travel, waste disposal, etc.
Latest Progress． Install solar panels, 100% of E.SUN's owned buildings equipped withsolar facilities by 2025, and 100% use of renewable energy in all
domestic branches by 2030
． Purchase renewable energy certificates in line with government energy
policies． Replace energy-consuming equipment, update old energy-consuming
lighting and air-conditioning equipment with energy-saving products． Build green buildings, 100% of E.SUN's owned domestic buildings to
obtain green building certification by 2027

100.0%． Operating locations and building
electricity consumption． Base year: 2020
． Investment and Financing (based on
PCAF methodology)． Base year: 2019

Net-zero actions． Reducing carbon emissions from credit cards by utilizing carbon
neutralization and researching renewable card materials． Collaborating with suppliers to implement local and green procurement

SBT required reduction target or engagement results

Note 1: (1)(2) carbon intensity (t-CO 2e/MWh) reduction
Note 2: (3)(4) carbon intensity (t-CO 2e/m 2) reduction
Note 3: SBTs use increase in reduction rate compared to baseline as the target. To make the information
more instinctual, we chose to present our results as a reduction percentage.

2026

55

Banking
for Better

Customers give E.SUN their trust
and asset. We are thus responsiblefor diverting resources toward themost needed place and create apositive force to the society. Fromearning, competitiveness to impact,
E.SUN is committed to embracing
innovative ﬁnancial services andhelping enterprises transform to thepath of sustainability. We promise
to be the best partner with ourcustomers on transforming path,driving the positive cycle across theﬁnancial industry, and keeping up
our effort to integrate internal andexternal resources to maximize thepositive ﬁnancial impact.

3.1 Sustainable Finance3.2 Inclusive Finance
3.3 Treating Customers Fairly
and Custimer Experience
3.4 FinTech and Innovation

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2-23, 2-24, 2-25, 3-3, 203-1, 203-2,
3.1 Sustainable Finance GRIGRI G4：FS1, FS2, FS3, FS5, FS8, FS9

Make a Change; Build a Mountain of Common Good

Initiate Dialogue, and Create an Ideal Future

A Call to Action for Sustainability: 100+ Companies Join in E.SUN's ESG Sustainable Initiative
In 2021, E.SUN and 32 like-minded business partners
jointly launched the "E.SUN's ESG Sustainable Initiative",
signing the "Sustainable Development Advocacy" andreducing greenhouse gas emissions through savingenergy and carbon reduction actions. In 2022, the initiative
expanded to include 101 companies in the sustainable
initiative, including industry leaders, quality enterprises,
and hidden champions, with a total revenue of over
NT$5.08 trillion dollars, accounting for more than 23% of
Taiwan's GDP in 2021. The companies jointly announced
their initiatives and set a target to reduce carbon
emissions by at least 1.57 million metric tons by 2025, with46 companies pledging to achieve net zero emissions by
2050.

Initiating dialogue, setting goals, bringing change,
and continuous tracking
The degree of sustainable development varies among
enterprises, as do the resources invested, pressures
faced, and challenges encountered. E.SUN speciallyinvited the Chairman of Taiwan Institute for Sustainable
Energy (TAISE), Eugene Chien, and the Chairman of

Taiwan External Trade Development Council (TAITRA),James C. F. Huang, to share international ESG trends
through expert discussions and analyze the difficulties
that enterprises may encounter in implementing ESG,
providing suggestions and solutions to help enterprises
continuously move towards sustainable development.
Through positive communication and interaction, we cantruly understand the challenges of the enterprises, andprovide professional opinions and assistance with them.
'Initiating dialogue', 'setting goals', 'bringing change',and 'continuous tracking' are important elements in theengagement with enterprises. Furthermore, E.SUN is also
grateful for the many corporate leaders who support andcollaborate, work together to solve the most pressing
issues in the world today, and creating a future that is bothsustainable and profitable.

80 enterprises

100%

set specific sustainable goal ESG resolutions supported

Engagement Approach and OutcomesEngagement Approach:

Based on the "E.SUN FHC Sustainable Development
Engagement Guidelines" and "E.SUN FHC Sustainable
Development Voting Guidelines", for domestic enterprises who
account for high proportion in E.SUN's financed emissions,"Climate Change" would be prioritized for engagement topic.
We will share the latest international trends, environmental
policies such as Taiwan Sustainable Taxonomy, industrial
carbon reduction actions, etc., and suggest customers tostart carbon inventory, encourage the use of renewableenergy, improve energy efficiency, plan green buildings, etc.,
to promote sustainable performance and long-term value of
our customers.
* E.SUN FHC Sustainable Development Engagement Guidelines & E.SUN
FHC Sustainable Development Voting Guidelines covers E.SUN's all
AUM in active investments.

Engagement Outcomes:• In 2022, E.SUN engaged with 206 financed enterprises
for managing ESG risks and opportunities and assisted insetting sustainable goals, including 101 ESG Sustainable
Initiative signatories, 63 enterprises who we have offered
ESG consultation services, and enterprises applying for
ESG-linked loans. We engaged with them by launching
ESG Sustainable Initiative, individual online/physicalmeetings, forums, trainings, etc. Among them, 80
enterprises successfully set specific sustainable goals.
In 2022/12, with a remaining balance of NT$62.64 billion
dollars, accounting for 7.2% of the total loan balance.
• In 2022, E.SUN engaged with 21 long-term invested
enterprises by sending emails. As of December 2022,
the remaining amount was approximately NT$355
billion dollars, accounting for 22.69% of the domestic
total investing amount, and successfully assisted one
enterprise in setting specific sustainable development
goals.
• In 2022, E.SUN supported 112 ESG resolutions of invested
companies by participating in the shareholders' meetingand exercising voting rights.

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3.1.1 Responsible Lending SASB：FN-CB-410a.1、FN-CB-410a.2
 Exercising Internal and External Inﬂuence
ESG Risk Management in Credit Process

New Customers

E.SUN Bank has developed a responsible lending business process
to scrutinize potential ESG risks through practical actions. Each
Corporate banking loan application require ESG assessments,
including sectoral exclusions for sensitive industries, significant
environmental/social adverse events, and collection of sustainabilityrelated information. E.SUN Bank avoids dealing with corporations
involved in arms, pornography, illegal logging, endangering wildlife,
coal-fired power generation, or coal mining, and cautiously assesses
operations related to tobacco and gambling or past significant
environmental and social negative events. If a case poses significant
concerns, the bank conducts stringent risk management and decline
the credit application.
E.SUN Bank also has climate risk and environmental risk screening
mechanisms in its credit process. For high-risk industries, thebank requires further clarification based on the industry's risk
characteristics, allowing better understanding of the company's
environmental sustainability response.

ESG online platform

Corporate Banking loan application

ESG KYC Process· Sectoral exclusions· Negative events screening· ESG data collections

Exclusions

Potential impact to ESG

RegularCustomers

In 2022, E.SUN Bank combined technology with ESG elements
to create an online information platform. The platform provides
enterprises with sustainable transformation resources, including
a carbon emissions calculator and knowledge webpages related
to fundamental ESG concept as well as information of sustainablefinancial products, actively supporting customers on their journey to
ESG development. The carbon emissions calculator is a tool featured
on the platform, using industry-specific carbon emissions coefficientsto estimate business emissions. Companies only need to enter theircorporate identification number to receive their estimated carbon
emissions in a simple way, and can further check their emission
ranking in the same industry, serving as a basis for setting futurecarbon reduction goals and forming action plans.

Adults entertainment, controversial
weapons, illegal logging,endangerment of rare species,
creation of new coal mine, orestablishment of new coal-fired
power station· Tobacco, gambling, mining,leather and fur production· Companies with significant
negative ESG events

Enhanced examination· Specify the facts or events,
imapct, and the mitiigation plan

With significant concerns

Declined

High risk sectors due diligence
High climate or highenvironmental risk sectors?
NO

Approved to Proceed

ESG online platform

58

YES

· Enhanced questionnaire
according to sectoral
characteristics· Recognize customer's
response to the major issues

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Internal Carbon Pricing

E.SUN Bank began working on credit-related internal carbon pricing mechanisms in 2021,
and officially implemented the measures in July 2022. We aim to guide our business units
to pay more attention to the impact of climate transition risks and international carbon coston their corporate clients. Furthermore, by utilizing the given information such as carbon
emissions intensity ranking and the tool for carbon emissions calculations, our business
units could manage their credit portfolio to meet the trend under the global climate
regulations.
• E.SUN Bank provides business units with internal carbon pricing reports, disclosing
the carbon emissions associated with their credit-granting customers and converting
the impact into an easily understandable carbon cost. Additionally, the bank uses
management tools to help businesses estimate future carbon emissions.
• Referring to the international carbon trading mechanisms, E.SUN Bank calculates thecost of excess carbon emissions with the World Bank's global carbon market weighted
price and international decarbonization pathways. The bank also encourages more
green loan and sustainability-linked loan transactions through carbon cost reduction
mechanisms.
• In 2023, the plan is to integrate internal carbon pricing with business performance
evaluation, gradually incorporating the concept of carbon cost into credit decisionmaking, and continuously improving the ability to respond to climate risks.

In 2022, E.SUN continued to invest resources in industries that are friendly
to the environment and society, such as industries involved in green power
generation, energy conservation and environmental protection, circular
economy, medical care and education, and supported key industrial
development policies promulgated by the government.

(NT$M)

Loans to ESG
industries

Outstanding balance
as of 2021

Outstanding balance
as of 2022

Green Loans

18,72653,741

Sustainable-Linked Loans

10,68140,642

Total value of sustainable lending

29,407

94,383

Total value of corporate lending

782,957

866,051

Percentage over total corporate
lending

3.76%

10.90%

59

Outstanding
loan balance
as of 2021

Outstanding
loan balance
as of 2022

883

1,055

6,000

7,112

729

732

2,576

2,929

Electric vehicles

353

114

Circular economy

3,144

3,439

Medical care

22,73324,454

Education

7,105

6,161

Sports & Fitness

4,206

4,360

Telecommunications andfixed network

3,540

4,176

Network communications andinternet

4,924

6,456

83

17

5+2 Innovative Industries andsupply chains

205,188

211,410

Total loans to ESG industries

261,464

272,415

Industry categories
Solar power
BicyclesEnvironmentalfriendly
Industries

Social-friendly
Industries

Balance unit: NT$ million

Sustainable lending

Seeking for Common Good

Loans to ESG Industries

 Sustainable Lending Business

Global temperatures continue to rise, and extreme climate events are becoming
more frequent. Climate change has become a major global risk issue, and countries
around the world have proposed carbon reduction targets. Taiwan's government has
also formulated the Green Finance Action Plan 3.0 to encourage financial institutions
to use funds to support the sustainable development of industries and enterprises.
E.SUN Bank has long been committed to environmental sustainability and responds
to international trends and domestic policies, by continuously supporting corporate
sustainability transformation and promoting industry progress towards net-zerotargets through green credit, sustainability-linked loans, and ESG industries credit.

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LED
Batteries

Industrial robots
Innovative
industries** Based on the definition of the government's 5+2 Innovative Industries, while excluding thedefense sector and sub-industries with higher sustainability risks in the related supply chain(such as cement, plastic, steel, etc.). Overlapped lending has been excluded.

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Green Loans

E.SUN established relevant bylaws and regulations with reference to the
Loan Market Association's Green Loan Principles. The purpose of this is tosupport business sustainability and extend green loans for green projects toassist enterprises in investing in clean energy, energy storage systems, water
resources and environmental pollution control, environmental protection
products or equipment, and green buildings, etc. As of 2022, the balance
totaled NT$53.7 billion, with an annual growth of 133%.

Building Resilience2020• Led arrange domestic wind power project financing• Participated in domestic large-scale solar power plants.

2021• E.SUN is fully committed to the development of renewable energy
project financing, including the addition of domestic Fishery andelectricity symbiosis projects and overseas operational geothermal
power generation, among other diversified green energy-related
businesses• E.SUN has also established a dedicated Green Finance PM unit to
expand business promotion momentum2022• Launched commissioned solar power stations campaign• Led arrange a large-scale domestic solar power stations asset pool
syndicated loan
• Financed Vietnamese solar power

AU 21%

Wind power

SG 1%

TW 68%(1) Green Project Financing
E.SUN combines its industry expertise to assist enterprises and industries
in promoting green energy development, from small and medium-sized
solar rooftop projects to the large-scale power plants such as offshore windand ground-mounted solar power stations. We deeply realize that investingin green energy industry financing not only meets international trends andsupports industrial development requirements, but also enhances E.SUN'sinternal professional capabilities and creates more business opportunities. In
recent years, E.SUN's green energy project financing business has had gooddevelopment in both quality and quantity, successively establishing offshore
wind and green energy expert teams, participating in important domestic andforeign wind power and solar energy projects, and expanding to other newenergy projects. As of December 2022, the related balance totaled NT$33.9
billion (NT$18.7 billion in 2021).

Seeking for Common Good

Development in the past three years：

Green Loan Regional Distribution Ratio (based on 2022 balance)
JP 2%
US3 % VN 1%
HK 4%

Our People

Solar power

393 MW

420,000 tons

79.8 million USD

732 MW

366,000 tons

69.5 million USD

Installed capacity

Installed capacity

Expected carbon
reduction

Expected carbon
reduction

Avoided social
cost of carbon*

Avoided social
cost of carbon** Installed capacity: In 2022, the disclosure method was adjusted, and the supported project site installedcapacity was recognized according to the credit amount participation ratio of the case (i.e., allocated amount/total project amount). If calculated according to the new disclosure method, the installed capacity of wind
power and solar photovoltaic in 2021 should be 398MW and 353MW, respectively.
* Expected carbon reduction: According to the installed capacity of the project site supported by E.SUN(including projects under construction) × 80% (financing ratio) × 8,760 hours × wind power capacity* Social cost of carbon is calculated by $190 USD/ton of CO2, based on the research data in "Report on theSocial Cost of Greenhouse Gases"(U.S. EPA, 2022)

Solar Photovoltaic Success Case
In 2022, E.SUN collaborated with renowned international investors to lead arrange syndicate
loans for the commercialization of photovoltaic assets, helping customers revitalize theirassets for reinvestment and creating a win-win situation for customers, E.SUN, and theindustry. The project consists of 42 sites with a total capacity of 186MW, spanning acrossTaiwan and covering ground-mounted, floating, and rooftop photovoltaic systems. The
estimated annual power generation is 270 million kWh, achieving the carbon reduction
effect of approximately 350 Da'an Forest Parks.

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Building Resilience• E.SUN Bank responds to the national New Southbound Policy, supporting Vietnam's
development of renewable energy
In 2022, E.SUN participated in a large-scale solar photovoltaic syndicated loan projectthrough its Dong Nai branch. Vietnam is a popular location for Taiwanese businesses to
set up factories overseas, due to its rapid economic development and increasing energy
demand. Although the country has great potential for renewable energy, it faces challenges
such as insufficient power grid infrastructure and difficulties in project financing. To
overcome these issues, E.SUN collaborates with local banks to jointly promote thedevelopment of renewable energy in Vietnam, which can also satisfy the energy needsof Taiwanese businesses. Through financial support, E.SUN helps strengthen theinfrastructure development of emerging countries.
• Energy Storage Equipment Financing
In response to the intermittent power supply characteristics of renewable energy, energy
storage systems are needed to stabilize the power grid. E.SUN supports a large-scaleenergy storage project in Changhua, constructing nearly 200 MWh of energy storage
capacity. In the future, it will enter the Taiwan Power Company's electricity trading market,
providing nearly 200 MWh of energy storage capacity for Taiwan's power system, helping
to support Taiwan's power grid and enhance energy resilience, ensuring a stable andreliable electricity environment for the public.
(2) Green Buildings and Energy-saving Equipment
E.SUN responds to Taiwan's 2050 net-zero emission strategy by not only assisting companies
in "energy transition" but also supporting the promotion of "industrial transformation". This
includes guiding companies to invest in green buildings, green offices, and energy-saving
equipment, thereby reducing corporate energy consumption and further decreasing carbon
emissions from their operations. By 2022, the green building balance has increased to NT$17.6
billion (NT$3.4 billion in 2021), a growth rate of 418%, and energy-saving equipment has
increased to NT$5.1 billion (NT$900 million in 2021), a growth rate of 467%.

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Assisting Successful Business Case—Chimei Corporation
E.SUN Bank, recognizing and responding to the issue of global warming,
has partnered with the world-renowned high-performance material
company Chimei Corporation. The two signed a 3-year, NT$20 billion
sustainability-linked loan, with the funds being used for various energysaving and carbon reduction measures, water resource reuse, andother actions promoting the "Clean & Green" vision. In addition, the loan
encourages companies to set ambitious carbon reduction targets (a 4.2%
annual reduction) by referencing the global emission reduction pathways
under a 1.5°C global warming scenario outlined by the Science-Based
Targets (SBT) initiative, guiding and assisting businesses to move together
towards a low-carbon future.

Sustainability Linked Loan Regional Distribution Share (by Balance)
US 3%
SG 8%

61

JP 1%

HK12%

Sustainability Linked Loans

To encourage companies to establish and achieve ESG development goals, and to continue
investing in sustainability-related initiatives, E.SUN Bank refers to the LMA Sustainability Linked
Loan Principles, designs relevant regulations and operating procedures, and establishes an
ESG assessment form. We evaluate the company's actual investment in ESG, sets sustainable
development goals through joint discussions with companies, and provides financial service
benefits if the company achieves those goals. By 2022, a total of 139 cases have been
approved, with a balance of NT$40.6 billion (NT$10.7 billion in 2021). In 2023, E.SUN willcontinue to promote sustainability linked loans, encouraging more companies to set ESG goals,
while incorporating performance into the evaluation of business units to guide them to grasp
customer sustainability development progress, and enhancing their impact on the environmentand society.

Seeking for Common Good

TW 45%
AU 31%

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Building Resilience Equator Principles• A total of 8 project financing cases were signed in 2022 that comply with the Equator
Principles, with most being environmentally friendly projects such as renewableenergy and waste-to-energy. Additionally, in 2022, E.SUN Bank evaluated one
overseas thermal power project but declined it due to high climate risks.

The cumulative number of approved cases for the Equator Principle in 2022

44

44

2022

36

2021

26

2020

19

2019
2018

Loan allocation and interim management

8

Industry distribution

Credit review unit atLoan review
Meeting ofBusiness unit
headquarter
committee
managing directors
Application registration Preliminary review and Approved / Declined Approve / Declined
and review
second review
Environmental and social risk
team at headquarters
Assessment of potential
environmentaland social risks

Seeking for Common Good

2022 Achievements

E.SUN has long supported large-scale projects that contribute to social
development. Since it became one of the first domestic financial institutions to
adopt the Equator Principles in 2015, E.SUN has participated in a number oflarge-scale project financings for electric power, infrastructure, etc. at home
and abroad. Furthermore, in accordance with the international standards ofthe Equator Principles Association, E.SUN manages project financing risks ina hierarchical manner, carefully assesses whether the project development
process fulfills environmental and social responsibilities, and properly formulates
environmental and social impact monitoring and improvement plans. Adopting
the fourth edition of the Equator Principles framework, E.SUN assesses theclimate change, human rights, and biodiversity risks associated with the projects
it finances and continues to fine-tune its control process to strengthen postloan
management. EP-based assessments and undertakings are as follows:

Corporateapplicants

Our People

Papermaking
Infrastructure
OtherenergyIndependent third party
evaluation agency
Facilitate and document review
and present the impartial opinionof a third party

41
9

30

Region distribution

Risk attribute

Southeast Asia
The UnitedStates 5
RenewableenergyAustralia

C
25

10

A

4

Taiwan3

635B

Note: Based on the Equator Principles, the risk levels of eachcase, from severe to minimal, are indicatedwith A, B, or C, and the cases would undergo reviewing processes that correspond to their level ofrisk.

 Supporting SMEs' Sustainable Development
SMEs serve as crucial pillars for economic stability and employment in Taiwan.
E.SUN has long supported the development of SMEs and assists them in theirsustainability transformation through sustainable SME loan, consultation services,and credit guarantee fund.

E.SUN's ESG team engages with SMEs through sustainability consultation services
and on-site visits, assisting them in grasping the sustainability trends of theirrespective industries and understanding the ESG requirements of the end supply
chain. This helps them establish sustainability-related mindsets and mechanisms earlyon. By the end of 2022, E.SUN had assisted 25 SMEs or hidden champion companies.
In the future, E.SUN will continue to exert its influence, planning to assist more highcarbon SME corporate customers (such as metal, petrochemicals, and transportation
sectors) in focusing on carbon issues, jointly promoting net-zero carbon reduction.

In 2022, E.SUN promoted various projects to assist SMEs in investing in
renewable energy, green buildings, and energy-saving equipment through green
loans and ESG-linked loans. By the end of 2022, the outstanding balance ofsustainable SME loan is NT$32.16 billion, accounting for 6.3% of the total SME
loan balance.
Sustainable SME Loan

Total value of SME lending

Percentage over total value

E.SUN has long supported SMEs through the Small & Medium Enterprise Credit
Guarantee Fund of Taiwan, receiving the highest honor for 18 consecutive years, andhas won the first place in the "Credit Guarantee Gold Award - Outstanding Financial
Institutions Category" for four consecutive years in the awards hosted by the Ministryof Economic Affairs.

2022 Balance (NT$M)

32,157507,230
6.3%

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Our Story

Journey to Net Zero

Banking for Better

Building Resilience

Our People

3.1.2 Responsible Investment SASB：FN-IB-410a.3 Sustainable Bonds issuance"E.SUN Sustainable Finance Policy" illustrates that E.SUN incorporates ESG
issues into investment analyses and decision-making processes, and the policy
covers all AUM in active investments. Based on the policy, E.SUN develops the"Securities Sustainable Investment Management Principles", which sets up a
management mechanism for high ESG risk enterprises, stating that a negative list
must be made for industries or enterprises that are potentially controversial, suchas the adult entertainment, controversial weapons, illegal logging, endangermentof rare species, creation of new coal mine, or establishment of new coal-fired
power station. Also, E.SUN follows "Guidelines for the Phase-Out of Coal andUnconventional Oil & Gas Industries". In 2022, we didn't hold unconventional oil& gas assets in the investment portfolio. E.SUN incorporates companies' SBT
commitments, carbon price costs, and ESG performance such as DJSI, MSCI ESG
rating into our investing evaluation model, preferentially selecting medium and low
ESG risk companies as investment targets. As of December 2022, E.SUN Bank's
bond investments categorized as low-to-medium ESG risk account for 99.34%, and100% of equity investments are low-to-medium ESG risk.

Seeking for Common Good

USD

60,000,000

TWD

14,400,000,000

Sustainability Bonds

TWD

1,600,000,000

Social Bonds

TWD

1,100,000,000

2022 Sustainable Bonds issuance volume

TWD

8,400,000,000

2022 bonds issuance volume

TWD

13,400,000,000

Green Bonds

62.69%

Percentage over total bonds issuance

E.SUN assists companies to raise funds for sustainable development goals. In recent
years, E.SUN has acted as the underwriter of 22 green bonds, 7 sustainability bonds,
and 2 social bonds, with a total underwriting amount of approximately NT$8.8 billion in
2022, accumulating a total of more than NT$23 billion by the end of 2022. Through its
competence in the financial industry, E.SUN helps companies fulfill their needs in ESG
and make contribution to Taiwan's sustainable development, continuing to expand theunderwriting volume at an annual rate of 23.26% in 2022, striving to become the top
brand in sustainable bond market.

E.SUN considers both ESG and financial performance, aiming to work together
with investee companies on climate change, environmental protection and social
welfare. Since 2018, E.SUN has declared its commitment to the "Stewardship
Principles for Institutional Investors" and regularly published the Stewardship
Annual Report. Through shareholder activism, E.SUN promotes the sustainable
development of investee companies through communication, participation inshareholder meetings, and exercise of voting rights, actively responding togovernment policies and fulfilling environmental and social responsibilities.

Sustainable Bonds underwriting
2021

7

2022

 2022 Results

17 of ﬁxed income products veriﬁed

2022 Sustainable Bonds underwriting volume

TWD

8,807,928,000

2022 overall Sustainable Bonds volume

TWD

113,442,338,000

Proportion of underwriting volume in the year

E.SUN continues to invest in environment- and community-friendly industries.
In 2022, E.SUN issued 1 social bond with a total amount of NT$1.1 billion
for the first time, along with NT$7.3 billion worth of green bonds. Following
the issuance of the country's first green bond in 2017 with a total of 7 NT
Dollar Denominated and 1 U.S. Dollar Denominated sustainable bonds,
E.SUN ranks first among Taiwan's domestic banks in terms of the sustainablebonds issuance scale. E.SUN adopts a financial management strategy that
integrates the concept of sustainable development, the funds raised are lentto support green investment plans involving renewable energy, greenhousegas reduction, and water resource conservation, as well as socially beneficial
investment plans such as basic service requirements, affordable housing,socioeconomic advancement, and protection of interests and rights.

100%

7.76%

E.SUN provides advisory services through underwriting sustainable bond process
as well as financing offshore wind power and solar power projects. Green energy
is the key to Net-Zero Emissions, the development of zero-carbon energy sources
such as offshore wind power and solar power can promote the transformation ofenergy and power supply structures to low-carbon or zero-carbon structures. E.SUN
provides sustainability related project hedging services and financial services tosupport environmentally friendly projects. In 2022, E.SUN provided Interest Rate Swap
(IRS) hedging services for 5 new offshore wind power and solar energy project ﬁnance,
worth NT$6.8 billion, accumulating a total of approximately NT$18.6 billion by the end of2022. E.SUN will continue to unleash its ﬁnancial expertise to exert its inﬂuence and assist
enterprises in implementing environmentally friendly projects and giving full support togovernment policies.

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Journey to Net Zero

Banking for Better

Building Resilience

Our People

Seeking for Common Good

3.1.3 Retail Banking SASB：FN-AC-410a.1、FN-AC-410a.2
 Sustainable Loans and Mortgages
E.SUN pays constant attention to environmental and social issues and launches a diverse range of ESG loans andmortgages to help customers build their beautiful and sustainable home. These products include "green buildings
mortgage," " solar roof loan," " electric vehicle loan," and"care-free mortgage" As of the end of 2022, E.SUN assisted morethan 11,557 customers in achieving their sustainable ideals. The balance of sustainable loans and mortgages reached
NT$121.16 billion, accounting for 12.55% of the total retail banking balance.
2022
Dimensions

Loan and Mortgage Projects that promote sustainability

Number of cases

Loan balance

760

11,338.26

Solar roof loan
(Assists individual households or small business in setting
up rooftop solar power generation equipment)

5

11.64

Electric vehicle loan
(Encourages the purchase of electric vehicles)

2

5.37

Care-free mortgage(Provides young people and lower income families withaffordable housing solutions, granting them housing
subsidies and grace periods to assist them in forming theirown families.)

11,155

108,720.86

Reconstruction of urban unsafe and old buildings loan
(Responds to the government's policy, and assists
customers in rebuilding unsafe and old houses to enhancetheir living safety)

49

822.63

New Immigrants Dream Loan
(Assists new immigrants in meeting their financial needs forwork and life in Taiwan)

269

267.88

Total number of cases and loan balance

11,557

121,167

Green buildings mortgage(Promotes purchase of certified green buildings)
Environment

Society64(NT$M)

Percentage of the total retail banking
balance (%)

12.55%

Our Story

Journey to Net Zero

Banking for Better

Sustainable Credit Loan - New Immigrants Dream Loan Project

Building Resilience

1. KYC/CDD Process

To ensure that all cases rigorously implement Know Your Customer (KYC) andCustomer Due Diligence (CDD) procedures, E.SUN automatically screens fornegative news and Anti-money laundering (AML) blacklists for each new credit
case during the application process. In 2022, 78,585 cases were reviewed under
CDD. Moreover, High-risk customers or industries (such as the gambling, and arms
industry) were subject to enhanced due diligence (EDD), and about 7.5% of cases
underwent EDD review in 2022. To sum up, loan applications were declined uponverification to reduce potential negative impacts on society.

Currently, there are approximately 577 thousand new immigrants New Immigrants
living in Taiwan Note. In addition to dealing with homesickness, New Immigrants
also need to adapt to new family expectations, Taiwanese culture, and the
responsibility of supporting their families. However, they also bring new culturesand ideas, which stimulate the development of various industries, making
Taiwanese society more diverse and inclusive.
To assist new immigrants with their financial needs for living and working in
Taiwan and to provide a better financial service experience, E.SUN launched the"New Immigrant Dream Loan Project" in 2022. The project is promoted throughdigital channels and E.SUN's 139 branches across Taiwan, providing seamless
online and offline services to help New Immigrants realize their dreams.

2. ESG Risk Assessment

For small business loan cases, E.SUN proactively investigates potential ESG risks
of customers. In 2022, a total of 5,873 cases underwent ESG risk assessment.
On the environmental side, E.SUN confirms whether loan applicant enterprises havebeen penalized for environmental pollution; on the social side, E.SUN considers
whether the responsible person is involved in illegal fundraising or violating the Labor
Standards Act. In conclusion, E.SUN promote customers' attention to environmental
and social issues. In 2022, E.SUN declined 12 cases due to violations of ESG
principles such as environmental pollution and labor laws.

Note: The data source is from the National Immigration Agency. New Immigrants are definedas either naturalized citizens of the Republic of China or holders of valid Alien Resident
Cards and Permanent Resident Cards.

Number of people E.SUN has assisted
in realizing their dreams

Seeking for Common Good

 Considering ESG Risks in the Credit Approval Process"For Foreigners Residing in Taiwan: Helping New Immigrants Achieve Their Dreams”

283

Our People

290 million

3.Climate Change

Dream loan amount exceeded
NT$ 290 million (YoY 21%)

To strengthen the management of climate change risks, E.SUN has incorporated thehazard (such as increased rainfall and typhoon frequency) and vulnerability (suchas susceptibility to flooding in a particular area) of flood risk factors into the zoning
standards for real estate collateral to reduce the climate risks of credit cases. In
addition, E.SUN plans to consider flood-risk factors in the midterm management
process. For collateral with a higher loan-to-value ratio located in high flood-riskareas, E.SUN will give it a risk notation to manage the impact on the value of the realestate collateral.

Case of New Immigrants Dream Loan Project
Person A, the founder of a company, recognized the increasing public interestin healthy eating and preventive medicine, prompting her to invest more funds
into her company's development and promote health knowledge to the generalpublic. However, as is often the case for general micro-enterprise owners,
particularly new immigrants, accessing funds from traditional banks can bea challenging and restrictive process, particularly when it comes to finding
Taiwanese guarantors.
Fortunately, with the introduction of the "New Immigrant Dream Loan Project,"the process of securing funds has become much more accessible. The project's
digital channels allow applicants to complete the entire process online, without
needing to visit a branch in person, breaking down time and space barriers.
Thanks to the ease of access provided by the project, Person A was able toacquire the necessary funds for her business development in a short period,
successfully keeping the business running and bringing her one step closer torealizing her dream.

Engagement with clients on sustainability-linked risk
The client planned to purchase a factory in Kaohsiung as a distribution center
to expand their operations. When E.SUN reviewed their loan application,
conducted a credit investigation and collateral appraisal, and found out that theclient's operational site in Taoyuan has been designated by the government as agroundwater pollution control site and has been fined multiple times. The pollution
issue has not been fully resolved, and this case violated environmental protection
regulations. Finally, E.SUN declined the loan application.

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Journey to Net Zero

Banking for Better

Building Resilience ESG Engagement

E.SUN is committed to fulfilling its corporate social responsibility, launchinga series of products and services such as e-banking comprehensive accountstatements, ESG credit cards, sustainable loan projects, corporate sustainability
transformation tools, ESG funds, and promoting them to customers through green
channels. The bank practices green living, supports energy-saving and carbon
reduction, and protects our common home, the Earth!

1. Green Consumption (including Green Transportation)

E.SUN has launched the green store and green transportation credit card
promotions - aimed at encouraging cardholders to prioritize environmentallyfriendly consumption, such as purchasing organic food and using public
transportation. These promotions have been successful, generating approximately
NT$5.13 billion in annual transaction amount and attracting about 660 thousand
participants.
Green StoreGreen Transportation

102,814

5,027,679

Transaction Amount(in thousands)
Total Participants

Our People

Seeking for Common Good

(2) E.SUN's Official Website "ESG Sustainable Finance"
E.SUN actively integrates sustainability concepts with financial products andhas established an "ESG Sustainable Finance" section on its official website
to showcase its philosophy and practices in the ESG field. We emphasize our
responsibility and commitment to customers, focusing on their needs to provide
high-quality financial products and services. At the same time, we are dedicatedto reducing energy and resource consumption, encouraging employees
and customers to participate in green initiatives, and protecting the Earth's
environment. E.SUN will continue to promote diverse cultures and social welfare
activities, fostering sustainable development.
By telling relatable stories that resonate with customers' lives, weconvey the green lifestyle and beautiful home concept that we create
together with them. We encourage more customers to practicesustainable actions and contribute their efforts to the environmentand society.

E.SUN accompanies customers in creating a green home

660,000 people

Mr. Chen and his wife have saved up for a down payment, hoping to build
their own home. Concerned about climate change and environmental
protection for their children's future, Mr. Chen chose to purchase an ecofriendly, green building-certified property and applied for a green building
mortgage project with E.SUN, joining hands to create a green home.

2. ESG Credit Card

In 2022, the number of customers who applied for ESG credit cards (including
E.SUN World Card, E.SUN Nanshan Co-Branded Card, Tsinghua Affinity Card,
Charity Card, Digital e-Card, E.SUN Signature Card, Black Bear Affinity Card, Cobranded EasyCard, and E.SUN Infinite Card) was approximately 134,360.

Returning home with E.SUN's support

3. Digital Channels(1) "Green Living, Sustainable Future" Campaign
Social media is an important medium for connecting with customers. In response
to ESG sustainable development, E.SUN encourages customers to support
environmentally-friendly consumption and quality social enterprises. Throughcampaigns and social media, the bank promotes green living and eco-friendly
guides on daily necessities, helping people understand the concepts and productsof social enterprises and contributing to a better future for Taiwan together.
Event Content
Promoting through social media with a focus on merchant stories has
been well-received by customers, resulting in a a high response rate"Let's Make a Promise to Our Planet, Taiwan, and Land"
Questionnaire Campaign (2022/05/01~06/30)

Participants
205,559

During university, Miss Chen moved to a big city from her hometown andworked part-time at a convenience store to help support her family. After
graduation, she stayed on as a full-time employee. However, she hoped toreturn to her hometown to be with her family and contribute to her community
by starting her own business. Through E.SUN's warm and enthusiastic
service, she successfully obtained a franchise startup fund and realized her
dream while reuniting with her family.
ESG Sustainable Finance

3,254

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Our Story

4. Physical activities

Journey to Net Zero

Taiwan Regional Revitalization Foundation x E.SUN Loan
Project Briefing
To help revitalization teams better understand financial
services, E.SUN have collaborated with Taiwan Regional
Revitalization Foundation to hold a project briefing. E.SUN
and Taiwan Local Regional Revitalization Foundation haveinvited representatives from industry, government, andacademia to listen to the pain points of the teams and assist
with corporate financial health checks. Based on their growth
history, business model, and funding purposes, E.SUN
provides customized financing solutions to work together
with the regionla revitalization teams to realize the beautiful
vision of "sustainable urban and rural areas."

Banking for Better

Building Resilience

Our People

Seeking for Common Good

【Retail banking business】2022 ESG-related Products and Number of Individual Customer Participating
Number ofcustomers
participating

Item

Description

Reconstruction of urban unsafe
and old buildings loan

We will engage customers to reconstruct
old buildings into modern, eco-friendly,and energy efficient housing that meets
social needs. It will also improve the overall
quality and functionality of urban areas fordaily life and improve the safety of housing.

21

Green buildings mortgage

We encourage customers to choose ecofriendly, energy efficient green buildingsthat generate less waste when purchasing
houses.

335

ESG credit cards

A portion of revenue from credit card
payments is used to construct libraries inrural areas and support environmental andwildlife conservation.

115,161

Green consumption

For World Earth Day, we encouragecustomers to purchase electric scooters,organic food products, and eco-friendly
products.

3,222

Credit / lending clients in retailbanking segment

Number of customers approved formortgages, credit loans, and credit cards
in 2022.

-29.3%

Percentage of credit / lending clients we have engaged with in retail banking segment

67

Number ofcustomer

117,379

400,535

Our Story

Journey to Net Zero

Banking for Better

Building Resilience

Our People

Seeking for Common Good Responsible Products

1. Wealth Management Products
Wealth Management Product ESG Rating Management

Sustainable Wealth Management Product(1) E.SUN reviews our wealth management product based on "E.SUN Sustainable
Finance Policy", and the policy covers all AUM in externally managed assets
investments.

Sustainable AuM reaches(2) Use ESG ratings from impartial third-party agencies (such as MSCI, DJSI,
Bloomberg, Morningstar, etc.) to assess onshore and offshore mutual funds,
offshore bonds, offshore ETFs, and offshore stocks for their ESG performanceand take the result into consideration during product selection process.
(3) Review the ESG ratings of the wealth management products on the platform
every month and adjust their promotion levels if there are any changes.
Product Review
General Items• Legality• Costs andFees• Investment
Strategy• RiskAssessment• Liquidity• PastPerformance• Treat Clients
Fairly24 billion, and percentage ofsustainable AuM over total AuM reaches
9.72%
Investment Approaches
ESG Integration

4,165

Best-in-Class Screening

17,570

Thematic Investing

Regular Review

ESG
Assessment

Product
LaunchESG Review

MarketingCampaign

Positive

V

PositiveV

NeutralV

Neutral

V

Negative

X

NegativeX

No DataV

No Data

Careful
Evaluation

68(NT$M)

Asset under Management(AuM)

Impact Investing
Other

509
906
1,083

Total Sustainable AuM

24,233

Total AuM

249,413

Note 1: Wealth management products include mutual funds, offshore bonds, offshore ETFs,
and offshore stocks.
Note 2: Sustainable wealth management products：(1) Mutual funds：Funds meet the ESG requirements of Financial Supervisory
Commission and are listed on ESG Fund Area of Fundclear. The investment
approaches include ESG integration, best-in-class screening, impact investing, EU
SFDR Article 8, EU SFDR Article 9, and so on.
(2) Offshore bonds：Include sustainability bonds and bonds in the top 25% of ESG
scores by MSCI, which are categorized as "Best-in-Class Screening" or "ThematicInvesting".
(3) Offshore ETFs：Products in the top 25% of ESG scores by MSCI, which are
categorized as "Best-in-Class Screening".
(4) Offshore Stocks：Products in the top 25% of ESG scores by MSCI, which are
categorized as "Best-in-Class Screening".
Note 3: (1) ESG Integration：Consider ESG factors into the process of investment decision.
(2) Best-in-Class Screening：Invest in the company with positive ESG performance relative
to industry peers.
(3) Thematic Investing：Invest in certain environmental or social issues, such as energy
transition, climate change, promotion of equality, and so on.
(4) Impact Investing：The investment strategy will bring positive impact on environmentand society.
(5) Other：Funds promoting environmental or social characteristics or with a sustainable
investment objective, which include but not limited to EU SFDR Article 8 or EU SFDR
Article 9.
Note 4: Asset under management (AuM) of wealth management products is calculated at present
value.

Our Story

Journey to Net Zero

Banking for Better

Business Partner Management(1) Evaluate the implementation of ESG-related practices of business partners
or any material negative ESG issues to rethink the depth of business
relationship with the partner. In 2022, a total of 1 business partner wassuspended from launching new products for a certain period due tomaterial negative ESG issues.
(2) All insurance companies and onshore fund companies cooperating with
E.SUN in wealth management business have all signed the "Stewardship
Principles for Institutional Investors", and offshore fund companies have all
signed the "Principles for Responsible Investment (PRI)".。

100%

100%

100%

Insurance Companies Onshore Fund Companies Offshore Fund Companies(3) Invite wealth management business partners to sign the "Sustainable
Development Commitment of E.SUN Bank Wealth Management Business
Partner". By the end of 2022, 24 partners have signed the commitment.
E.SUN continue to invite more business partners to join, hoping to leverage
the power of our partners to create sustainability impact of promoting ESG
investment products and implementing sustainable finance.

Building Resilience

Our People

Seeking for Common Good

Encourage Customers to Involve In Sustainable Finance
E.SUN offers a variety of sustainable activities and services, encouraging customers to
pursue sustainable development while improving their asset allocation.
(1) Sustainable Deposits

Since August 2022, the "Sustainable Deposits" project has been launched, inviting 133
ESG sustainability initiative businesses to participate. In 2022, a total of 14 companies
undertook "Sustainable Deposits", with accumulated balance of NT$1.031 billion,
which will be used for renewable energy, energy efficiency, pollution prevention andcontrol, clean transportation, sustainable loans, and financial investment products.

(2) ESG Funds Campaign

The ESG-themed fund investment campaign, "E.SUN ESG Funds", allows customers
to contribute to sustainable development while investing. In 2022, the accumulated
sales reached NT$31.48 million, and the number of transactions (including renewal
deductions) reached 4,034.

Wealth Management Customer Due Diligence (CDD)(1) When establishing a business relationship with wealth management customers, E.SUN
carries out customer due diligence and Know Your Customer (KYC) procedures toassess aspects such as identity, source of funds, transaction content, and accountpurpose. This ensures the implementation of anti-money laundering and counterterrorism financing management mechanisms. If a customer is suspected of applying
for a business for illegal purposes, we will decline the application.
(2) The membership application processes of private banking includes ESG factors suchas violation of environmental protection regulations, failure to conduct business withintegrity or social responsibility, in order to guide customers to pay attention to ESG
issues through due diligence and continue to exert positive social influence.

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Journey to Net Zero

Banking for Better

Building Resilience

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Seeking for Common Good

2. Zero carbon credit cards SASB：FN-CF-000.A、FN-CF-000.B
Since 2019, E.SUN has been promoting the carbon footprint label for all credit cards. As of the end of 2022, more than 4.8 million "Zero
Carbon Credit Cards" have been issued, and we aim to convert all credit cards in force to zero carbon credit cards by 2025. For informationon other ESG-related credit cards, please refer to the table below:
Category

ESG Credit Card

E.SUN World Card

SocialEnvironmental

2022 Number of Proportion Donation amountcards in force of the whole (Thousand NTD)

Content

Allocate 0.3% of the domestic general consumption amount to build libraries.
Cardholders can participate in these activities while consuming and contribute tocreating a warm and comfortable reading environment for rural children in remotearea elementary schools.

E.SUN Nanshan Co- Allocate 0.1% of general consumption amount to donate to Nanshan Happiness
Branded Card
Fund, supporting community care and assistance projects.
Tsing Hua Affinity
Card

Allocate 0.2% of the general consumption amount to support the "Sunrise Program"of Tsinghua University, which provides aid to economically disadvantaged students.
Through this contribution, we aim to help these students transform their lives andreach their full potential.

Charity Card

Allocate of 0.2% of the general consumption amount is donated to the blood
donation event charity fund.

Digital e-Card

The first virtual credit card not only reduces the carbon emissions generated byeach physical card production by approximately 900 grams but also provides up to
10% cashback for designated green purchases.

E.SUN Signature
Card

When customers opt for electronic billing, 0.2% of their general consumption
amount for each transaction will be automatically donated to a tree-planting
program.

Black Bear Affinity
Card

Allocate 0.2% of general consumption amount as a donation to the Taipei Zoo
Animal Conservation Fund.

Co-branded
EasyCard

Upon spending NT$3,000 with your card in a month, you can enjoy promotional
offers for riding public bicycles in the following month.

E.SUN Infinite Card

With any purchase amount, you can enjoy promotional offers for riding public
bicycles in the following month.
Overall

670 thousand
cards

10%

47,905440 thousand
cards

6%

794

6.89 million
cards

100%

48,699

1. In 2022, E.SUN issued over 780 thousand zero-carbon credit cards, which were verified by third-party auditor BSI to have offset 861 tons of CO2
equivalent. Based on the requirements of PAS 2060:2014, E.SUN declared these issued credit cards have achieved carbon neutrality.
2. The carbon offset for E.SUN credit cards come from the Changbin renewable wind power located in Taiwan.
3. As of the end of 2022, E.SUN had a total of 6.89 million credit cards in force, and a total of 4.69 million active credit cards.

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3.2 Inclusive FinanceBanking for Better

Building Resilience

Our People

Seeking for Common Good

GRI：2-23, 2-24, 2-25, 3-3, 203-1, 203-2, 413-1, GRI G4：FS1, FS3, FS5, FS7, FS9, FS10, FS13, FS14, FS16
SASB：FN-CB-240a.1、FN-CB-240a.3、FN-CB-240a.4

Traceable Agricultural Products (TAP) Loan

Caring Trust"Support Traceable Agricultural Products, promote the sustainable co-prosperity"Providing diverse trust services to meet customers' all-round needs for a fulfillingof industry and ecosystem ＂retirement life ＂In recent years, Taiwan's agricultural practitioners need to follow increasingly
stringent product quality requirements so as to expand their products into global
markets and consolidate domestic demand.

To protect the assets of elderly customers and enrich their retirement life, E.SUN offers avariety of caring trust services:(1) Diverse trusts: By combining employees benefit trusts and caring trusts into a "1+1
trust portfolio," customers can transfer stocks or the money from the sale of stocks
in their employees benefit trust to a caring trust account, adding another layer ofprotection for their retirement assets. To help customers rebuild old houses, we
also provides trust services for the development of old and dangerous real estate,enhancing their living safety.
(2) Digital services: E.SUN provides comprehensive digital trust services. Customers canapply online, receive digital consultations, sign contracts via video calls, to secure
their assets.
(3) Retirement life: Customers can authorize the deduction of credit card payments
through their caring trust accounts, meeting their consumption needs during
retirement. E.SUN collaborates with concierge service providers to offer value-added
trust services, allowing customers to access services like home safety inspections
with just one phone call.

To ensure food safety, foster industrial upgrading, and encourage sustainablebusiness operations, E.SUN has responded to the Agriculture and Food
Agency's policy. In 2023, we cooperated with TAP Program Office to launch a
dedicated loan, supporting microbusinesses to produce safe, traceable, highquality products.In addition, we promoted TAP products on the internal website
encouraging our employees to purchase them. So far, 15 companies have been
recommended, such as seasonal fruits, natural farming rice, intergenerationalfarming soybean products, etc.
In the future, E.SUN will continue to work with partners from different industries
to raise public awareness of TAP, encourage producers to join the traceability
system, and encourage consumers to purchase eco-friendly products.
Through public-private cooperation, we can jointly enhance the value andcompetitiveness of Taiwan's agricultural products.

Through the caring trust, warm care is provided to customers

E.SUN visits the Council of Agriculture
Climate Change Program Office andthe TAP Program Office, to understandthe current industry situation, future
trends, and financial service needs.

Mr. Wang has been a long-term customer of E.SUN, and his son unfortunately became avegetative state after an accident. Although Mr. Wang has received compensation, he isstill worried that he will not be able to properly take care of his son in his later years. E.SUN
listens to Mr. Wang's needs and helps him to pay for his son's medical care throughthe trust. The relevant expenses can be automatically deducted from the designatedaccount every month, allowing Mr. Wang to take care of his son with peace of mind.

2022 Achievements
Number of new beneficiaries

630
71

peopleNew trust property principal
NT$

6.203

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3.2.1Expanding Financial Accessibility Friendly Financial Services

E.SUN provides convenient and friendly financial services for residents in rural areas, migrant workers or new residents, and individuals with impairments through physicaland digital channels, such as multi-language ATMs, voice ATMs for the visually impaired, etc. E.SUN also implements the "Friendly Counter Promotion Plan", where lobby
receptionists guide and prioritize services for the elderly, individuals with impairments, those with mobility difficulties, and pregnant women. With the help of reading
glasses and communication cards, E.SUN provides customers with a friendly financial experience.

Friendly Financial Services
Targeted Clients

Rural Areas
Residents

Migrant
Workers
or New
Residents

Physical Channels

Digital Channels

・Convenient Automated Equipment: According to the list of "Areas where thenumber of branches of financial institutions needs to be increased" provided
by the Financial Supervisory Commission, E.SUN has set up ATMs in areas
with less banking automated equipment, such as FamilyMart convenience
stores in Jianshi Township, Hsinchu County, Baozhong Township, Yunlin
County, and Jiadong Township, Pingtung County with11 ATMs installed so
far.

・e.Fingo Digital Brand: E.SUN has created the "e.Fingo" digital brand withthe spirit of practicing inclusive finance, combining forex, loans, credit
cards, and other services. e.Fingo takes advantage of digital operations
and connectivity to make financial products user-friendly. The methodof gamified promotion makes it easier for customers to absorb financial
knowledge, creating a network effect between customers and products, andbreaking the limitations of time and space.
・Digital Services: Residents in rural areas can complete the procedures ofaccount opening without going to a branch in person and be able to apply
for industry-leading products and services online (such as depositing
in domestic and foreign currencies, credit cards, domestic stocks, andsecurities re-entrustment). Over 90% of customers choose to open a foreign
currency account during the process of digital account opening. Throughcross-industry cooperation, E.SUN connects customers' food, clothing,
housing, and transportation, providing unique digital services and making it
more convenient for customers in rural areas to use financial services.

・Communication Without Borders: In response to the "2030 Bilingual Country
Policy Development Blueprint", E.SUN has established the first bilingual
demonstration branch at National Taiwan University, ahead of its privatebank peers. By the end of 2022, a total of 57 bilingual branches have been
set up, with bilingual financial zones, service centers, interest/exchange
rate billboards, and common transaction forms. Bilingual branch locations
are also displayed on the official website.
・Migrant Worker-friendly & Inclusive ATMs: To provide convenient financial
services for migrant workers and new residents, E.SUN has deployed 1,250
ATMs with bilingual user interface(including CDMs), and also upgraded
the language interface of ATMs by adding Indonesian, Vietnamese, Thai,
etc., a total of 5 foreign language interface services to cater to the needs of
migrant worker.

72

・Diverse Online Services: Customers can access diverse financial services
through call centers, message boards, intelligent customer services (AIChatbot), and text-based customer service. Additionally, E.SUN presentsinternet banking, voice authentication, and English intelligent customer service
for migrant workers, making digital financial platforms migrant worker-friendly.
・Video Services: E.SUN uses video services for a variety of financial services,such as the setting function of designated transfer accounts, applying/changing mobile phone numbers for SMS passwords, and increasing thetransfer limit for digital accounts of Type 3. Migrant workers or new residents
who are unable to go to the bank in person can take advantage of thisservice for a more convenient and comprehensive experience.

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Friendly Financial Services
Targeted Clients

Physical Channels

Digital Channels

・Accessible Automated Equipment: E.SUN has installed automated devices
with a height under 120 cm, as well as providing voice instructions, alerts,
and flashing signals. In response to government policies for individuals with
impairments, 99 ATMs with voice assistance for the visually impaired havebeen installed in public places such as train stations, government offices,
universities, and large medical facilities. Customers with disabilities can apply
for fee reductions on interbank ATM withdrawals, one account per person withthree discount coupons per month.
・Wheelchair Accessible Services: By 2022, all branches in Taiwan (except
Nanshan Plaza and Taichung City Center branches, which provide privatebanking services) have equipped accessible counters (including service bells)
and continue to install accessible restrooms and ramps.
Individuals
with
Impairments

・Accessible Services for Hearing-Impaired Customers: To ensure financial
fairness and friendly treatment, E.SUN provides online application services
and various notification methods (such as text messages and email).E.SUN
cooperate with the Chinese Deaf Association to install video cameras,
microphones, and speakers in branches to provide remote sign language
interpretation, help hearing-impaired customers communicate with staff in sign
language through three-way video calls.
Item

2020

2021

2022

Accessible counters

138

139

139

Accessible toilets

111*

112

114

ATMs for individuals with
impairments

959

1,247

1,306

* In 2020, the standard for accessible restrooms was adjusted from "Compliancewith building regulations" to "Compliance with FSC standards," resulting in a little
difference in numbers.

73

・Accessible Financial Services: Financial services are now available to visually
impaired customers, due to frequently used functions being simplicial andall services being able to be voice-narrated including the E.SUN official
website's friendly service section (National Accessible AAA rating), E.SUN
friendly online banking (National Accessible AA rating), E.SUN friendly
WebATM (National Accessible A rating), mobile banking friendly section(certified by the Taipei Association of Parents of the Visually Impaired), andE.SUN Wallet-friendly version (certified by the Taipei Association of Parentsof the Visually Impaired).
・Friendly Information Disclosure: Individuals with impairments can accessinformation about friendly financial services through E.SUN's businessnotices, the official website, and customer service regulations. They canalso search for accessible ATM distribution information in the banking
association's accessible section.
・Diverse Interface Optimization: To improve customers' browsing experience
within our digital platform, E.SUN have increased font size and contrast on
digital platforms. Simultaneously, mobile banking provides more customized
visibility services for customers with poor vision or light sensitivity (e.g.,adding a dark mode feature).

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3.2.2 Enhancing the "usability of ﬁnancial services" FN-CB-240a.1、FN-CB-240a.3
 Dementia-Friendly Financial Plan

E.SUN has partnered with the Taipei City Hospital to promote a dementia-friendly plan. The Interdisciplinary Immersive Education Development Center of Taipei Hospitalintegrates neurologists, clinical psychologists, and standardized teachers to provide professional courses on dementia trends and empathetic services to E.SUN
employees using innovative simulation training modules. Employees interact with trained standardized teachers to enhance the service skills of "watching, asking, staying,
and calling": watching - identifying people with dementia, asking - discovering and addressing their needs, staying - providing appropriate assistance, and calling notifying their family or relevant authorities. This improves employees' recognition and empathetic services for customers with dementia.

 Inclusive Finance Wealth Management Product - Microinsurance
Disadvantaged and underserved groups

In 2022, E.SUN cooperated with insurance companies and county/
city governments to expand the impact of microinsurance, by assisting
economically disadvantaged and special status individuals to obtainbasic insurance coverage with lower premiums. This includes providing
basic microinsurance for economically disadvantaged elderly aged 65-75
in Tainan City with estimated over 8,000 beneficiaries, and for low-income
households, the near-poor households, and individuals with impairments
in Hualien County, protecting disadvantaged families and covering their
daily needs.

(NT$ Thousand)Insurance Products

Targeted Clients

Number of Cases Premium

Microinsurance

Economically disadvantaged individuals withspecific status and their family members:
1. Low-income and the near-poor individuals
2. Indigenous people, farmers, fishermen
3. Individuals with impairments
4. Family members mentioned above

52

17

Small Amount Whole Life
Insurance

1. People with limited budget
2. Elderly people
3. Fresh graduates

17

792

Spillover-effect Insurance

Health-conscious people

1,238

22,986

1,307

23,795

 Inclusive Finance Loan Product
Provide comprehensive ﬁnancial services to support the development of microbusinesses.

Total

Provide comprehensive ﬁnancial services to support the development of microbusinesses.
Acquiring funds has always been a huge challenge for SMEs, and for
microbusinesses, it is even more critical to their stable operation. E.SUN
issues social bonds to provide the necessary funds for microbusiness
operations. Through three major actions - "business financial advisory,
funding assistance, and efficient services" E.SUN helps enterprises
strengthen their financial structure, quickly provides capital using digitaltechnology, and supports their growth.
• Business financial advisory : E.SUN collaborates with cross-industry
partners (e.g., Taiwan regional revitalization foundation, Townway, etc.)
to hold financial seminars, helping over 20 start-up teams establish
basic knowledge for business operations, financial planning andmanagement skills.

• Funding assistance: By integrating resources from Taiwan SMEG(Small & Medium
Enterprise Credit Gurantee Fund of Taiwan), E.SUN develops diverse financing plans forenterprises at different stages of development (startup, growth, maturity).
• Efficient services: Utilizing AI and digital technology, E.SUN offers microbusinesses
online loan calculation services, allowing business owners to quickly obtain loan amountand interest rate information without time and space constraints.

Impact valuation
Employment promotion

96,335

Avoided social costs

jobs

2.37

billionNote: The reduced social cost is calculated as the number of total clients of small business loan x average
number of small business employees x unemployment benefits for each unemployed person

74Our Story

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Inclusive ﬁnance loan productProject

Targeted Clients(NT$ Million)

2020
Number of clients

2021
Amount Number of clients

2022
AmountNumber of clients

Amount

2,871

2,069

2,523

1,606

5,891

1,160

5,469

1,181

5,316

21

70

26

79

45

112

Commercial mortgage
Loan for procurement of office and manufacturing facility

4,137

36,906

4,042

37,527

3,957

37,981

Working capital loan
Working capital for small businesses

16,06464,903

17,61464,991

17,76066,183

19,267104,164

Startup loan
Helping star-ups sustain by offering quick access to financing

2,592

2,182

Distinct local business loan
Providing financing exclusively to businesses with local
characteristics, balancing the gap between urban and rural

1,099

Social innovation enterprise loan (Smile & Hope Loan included)
Helping social enterprises and social innovation enterprises growand become financially healthy

Microbusinesses

Total Number of clients and amountResidential subsidy loans
Assisting low-income families with home improvement and homepurchases
Debt negotiation and repayment plan services
Debt restructuring for families facing incidents

Poor and lowincome individuals

Earthquake disaster victims
Post-disaster reconstruction loan service

874

1,300

993

1,496

1,154

1,759

1,768

248

2,951

995

1,826

495

21

14

17

11

14

8

2,994

2,262

Total Number of clients and amountStudent loans
Assisting outstanding students in financing their overseas studies
Loans for startup funding for young entrepreneurs
Assisting young start-up entrepreneurs to build their businesses andcreating a conducive environment

288

200

284

197

285

191

206

85

373

178

521

242

806

433

3

2.45

23,069106,861

Young people

Total Number of clients and amount
Reverse mortgage
Helping the elderly to revitalize their real estate and regularly
allocating stable living funds

Elderly people

-

-

-

-

Total Number of clients and amount75

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3.2.3 Enhance Financial Literacy FN-CB-240a.4
 Financial Education
Little Financial Experts

To link the two ends of an M-shaped society, E.SUN
x PaGamO use digital platforms as the medium
to teach students in elementary school and juniorhigh school financial knowledge. Instead of using
the traditional teaching method, gamified learning
method allows students to think and find answers
independently while solving problems, thereby
enhancing their learning interest and motivation.
A total of 320,000 participants have taken part in
2022.
Financial Lectures in Golden Seed ProjectTo cultivate children's correct financial concepts,
E.SUN promotes financial lectures in elementary
schools under the Golden Seed Project. The
lessons combine rich teaching materials, enablingchildren to learn about financial knowledge throughentertaining, interactive methods and share theirfinancial concepts with friends and classmates. A
total of 200 children have taken part in 2022.

Investment Lectures in University
Since the outbreak of the pandemic, there has
been a significant increase in the number of young
generations participating in the stock market. E.SUN
Investment Consulting, a subsidiary of E.SUN
Securities, has also collaborated with student
associations and clubs in universities since 2021 toopen investment lectures for students. As of April
2023, a total of 6 investment lectures have beensuccessfully held, receiving positive feedback
from students. Furthermore, there have been
instances of breach of settlement obligations by
new investors due to lack of understanding about
the operational procedures of the stock market.
Therefore, E.SUN Securities has designed a basic
knowledge questionnaire as part of the accountopening process to ensure that new investors areaware of the relevant regulations and recognize thesignificance of credit risks.

Financial Knowledge on Social Media
Platforms
E.SUN shares financial concepts and productfeatures on social media platforms, including
Facebook, Instagram and YouTube, aiming to lower
the threshold for customers to access financial
knowledge and improve the readability of financial
information. In 2022, the " Learn about Trust in FiveMinute " video was launched in a light-hearted style,garnering over 5,000 views.

76

Financial Planning and Trust Seminars for
Senior Citizen
Facing aging society, E.SUN goes into campuses,
associations, and communities to promote trust.
E.SUN has served as an instructor of trust lectures
for the New Taipei City Pine Age University forthree consecutive years and has carried out
trust advocacy activities in institutions suchas the Zhunan Rotary Club, New Taipei City
Senior Association, and Chiayi Evergreen Elder
Care Service Center. This allows more people
to understand trust. At the same time, E.SUN
collaborates with attorneys and accountants to holdtrust seminars, conveying the importance of elder
caring trust and family inheritance, and reminding
the public to prepare and plan in advance. In 2022,
a total of 15 events were held, with more than 4,000
participants.

Financial Lectures for Startups
E.SUN collaborates with cross-industry partners(e.g., Taiwan regional revitalization foundation,
Townway, etc.) to hold financial seminars, helping
over 20 start-up teams establish basic knowledge
for business operations, financial planning andmanagement skills.

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Building Resilience

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Seeking for Common Good Incentives to Establish Saving Accounts

Carbon Emissions Calculator

Bonuses of Digital Saving AccountEmbracing the pressure of international carbon reduction, small-sizedenterprises often lack resources to conduct greenhouse gas inventories, letalone set carbon reduction targets. To help small-sized enterprises achievesustainable transformation, they should start by grasping their own carbon
emissions and then setting carbon reduction targets. In May 2022, E.SUN
launched the "ESG online platform" on its official website, which pioneered the"carbon emission calculator". Companies only need to enter their corporate
identification number to receive their estimated carbon emissions in a simple
way, and can further check their emission ranking in the same industry,
serving as a basis for setting future carbon reduction goals and forming
action plans. It is suitable for companies that have not yet conducted carbon
inventories to grasp the outline of the decarbonization path, and work withcustomers to achieve a vision of zero net emissions.

Residents in rural areas can complete the procedures of account opening
without going to a branch in person and be able to apply for comprehensive
financial products and services online (such as depositing in domestic
and foreign currencies, credit cards, Taiwan stocks, and securities reentrustment). To encourage underserved groups to save money, E.SUN offersinterest rate bonus of TWD fixed deposit and transaction fee discount for
regular investment on Taiwan stock / US stock.

Fee Reductions on Interbank ATM Withdrawals

To encourage customers with disabilities to save money and withdraw moneyfrom ATM where they're convenient to access to, they can apply for fee
reduction on interbank ATM withdrawals, each account per person with threetimes transaction fee for free per month.

Inclusive Finance：Establishing Financial Literacy
Financial Inclusion – Non-Financial Support

Targeted clients

E.SUN Little Financial Experts

Young People

320,000 Participants

Financial Lectures in Golden Seed Project

Young People

200 Participants

Investment Lectures in University

Young People

50 Participants

Financial Knowledge on Social Media Platforms

Individuals in rural or hard to reach areas

Financial Education

2022 Quantitative Social Impact KPI

Financial Planning and Trust Seminars for Senior Citizen Elderly People
Financial Lectures for Startups

475,000 Participants
4,000 Participants

Microbusinesses

20 Participants
Total 799,270 Participants

Technical Assistance

Incentives to Establish
Saving AccountCarbon Emissions Calculator

Microbusinesses

5,548 Webpage Visits

Bonus of Digital Saving AccountIndividuals in rural or hard to reach areas

270,007 Applicants

Fee Reductions on Interbank ATM Withdrawals

Individuals with health condition or
impairments

595 Applicants

Total 270,602 Applicants

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3.3 Treating Customers Fairly and Customer Experience

Seeking for Common GoodGRI: 2-25, 3-3, 417-1, 417-2, 417-3; GRI G4
Financial Services Industry Disclosure Indicator:
FS15; SASB: FN-CF-270a.4

Service has always been the core value and business philosophy of E.SUN. With a vision to become "An Exemplar for the
Financial Industry, A Benchmark for the Service Industry" since its establishment in 1992. In recent years, expectations
for the financial service industry have changed both domestically and internationally, with an increasing emphasis on
customer rights protection and customer experience in both physical and digital channels. E.SUN closely monitors
the evolving landscape of the financial service industry, and remains dedicated to its original service philosophy.
By continuously establishing a culture and management system based on the principle of treating customers fairly,
E.SUN aims to place customer experience as core value, ensuring service quality, implementing customer protection,enhancing customer communication and interaction, and providing customer-centric financial services.

 Bank-wide implementation of Treating
Customers Fairly
E.SUN actively implements all principles of treating
customers fairly, with a dedicated team appointed by
the board of directors - the "Treating Customers Fairly
Steering Committee" - overseeing the implementationand supervision of each department. The internal
regulations, approved by the board of directors, stipulatethe "E.SUN Bank Treating Customers Fairly Policies andStrategies" and the "E.SUN Securities Treating Customers
Fairly Policies and Strategies" as guidelines for the
implementation of various businesses and are incorporated
into internal control and audit systems.
To continuously establish a culture of treating customers
fairly, E.SUN developed a comprehensive training planin 2022, including training guidelines for all categories
of personnel, and specifying the frequency, responsible
units, and external regulatory basis. This plan ensures not
only frontline counter service personnel, but also directors
and senior executives all receive regular training. In
2022, E.SUN's entire staff accumulated a total of 57,204
participations in treating customers fairly-related training,with a total training time of 194,807 hours.

Treating Customers Fairly Steering Committee

Audit Division

The board of directors pays close attention to
the implementation of the principle of treating
customers fairly. The general manager serves
as the convener of the committee, and an
independent director serves as the guiding
member, promoting treating customers fairly
from top to bottom.

Board of Directors

General Manager

Treating Customers Fairly
Steering Committee

Working Group:
Customer Protection

78

The Treating Customers Fairly Steering
Committee is composed of senior executives
from various units, responsible for implementing
treating customers fairly in terms of regulations,systems, and service aspects. The committee
and two working groups hold regular meetingsto track the progress of the implementation ofimportant measures.

Working Group:
Customer Service

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 Customer Complaints and Rights Protection

Establish a system to effectively handle customer complaints
To protect the rights and interests of financial consumers, all E.SUN
business documents follow the "E.SUN FHC business document
assessment", fully revealing the product information, fee calculation andcampaign terms. All of the important terms and the usage of personal
data are marked in clear fonts. In 2022, E.SUN completed a total of 277
assessments, and the audit rate was 100%. There is no any violations of
unclear and wrong document labeling.
E.SUN places great importance on the proper handling of customer
complaints and subsequent improvement, with established guidelines
such as "E.SUN Bank Consumer Dispute Resolution Principles "and "E.SUN Securities Consumer Dispute Handling Procedure".
E.SUN analyzes the causes of disputes, refines practices, andimproves outcomes, reporting to the board of directors each quarter.
Responsibilities for handling dispute events are also clearly defined
across different units to enhance efficiency.

2020

2021

2022

1,014

956

843

Forwarded by the competent authority (cases)(Including Financial Supervisory Commission
complaints, telephone calls, and Financial
Ombudsman Institution cases of dispute andmediations)

619

489

538

Provided financial negotiation (%)

0.8

1.0

1.4

Case not closed at year-end (%)

2.6

0.3

2.1

Number of complaints solved (%)

97.4

99.7

97.9

Customer complaint feedback (cases)

Since 2021, E.SUN has obtained the ISO 10002 customer complaint
management system certification for two consecutive years,
establishing a disciplined customer complaint management system.

1. Diversified Opinion Reflection Channel
Including physical and digital channels, opinion
reflections are not limited by time and geography.

2. Contact instantly and handle properly

Make contact to the customer on the same day,and reply after handling within 7 days.

3. Root cause analysis; prevention and improvement

Cross-departmental meetings hold regularly and discuss
improving actions.

79

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Establishing a cross-departmental anti-fraud team to protect customer assets

As fraud cases and tactics continue to evolve, E.SUN diligently fulfills its management responsibilities by establishinga cross-departmental anti-fraud team, regularly exchanging information on new types of scams, and collaboratingfrom various aspects to prevent fraud. In 2022, a total of 371 fraud cases were intercepted, with a total amount of
NT$133,528,443, showing an increase in both the number of cases and the amount compared to the previous year.
E.SUN strives to protects customers from being defrauded and maintains social financial stability.

Advocacy• Conduct anti-fraud information
through official website, mobilebanking, social media, email, etc.
• Branches confirm with customers
again before transactions.

Verification• Strengthen transaction verification incommon scam scenarios.
• Balance convenience and optimize
identity verification mechanisms.

Monitoring• Continuously update the accountwarning model to prevent
improper use of accounts.
• Proactively detect and remove
counterfeit web pages/apps.

Handbook of Anti-Fraud Precautions

Collaboration• Collaborate with the Police
Department on a suspicious
phone number blacklist reporting
platform.

80

Blocked fraud in monetary value(Unit: NT$1 millions)2022

133.532021

125.48

2020

53.54

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 Creating Customer Satisfaction with the Core Value of
Customer Experience
E.SUN Service Management System
E.SUN Financial Holding Company has established the "Total Quality Management
Committee" (TQM), which is convened by the director of the E.SUN Financial Holding
Company's Integrated Management Office. The TQM meeting is held twice a year,
and a dedicated department, the "Customer Service Division," is responsible for
implementing comprehensive quality management. With a customer-centric approach,strive to improve service quality.

Creating Warm Customer Service"Cultivating the most professional talents and providing the best service tocustomers" is E.SUN's business philosophy. Service is the DNA of every
E.SUN employee. In recent years, E.SUN has kept pace with the times by
establishing a customer service management system and improving service
quality management through satisfaction surveys, service quality evaluation,and external mystery shopper inspection. The goal is to create a warm customer
service experience and provide products and services that better meet customer
needs.

E.SUN FHC

E.SUN employees are taught from the heart right from the beginning of theirtraining. To ensure service quality, implement customer protection, and enhancecustomer communication and interaction, the following principles are set
according to pre-, during-, and post-service:

TQM Steering
Committee
Customer Service Division• The spirit of customer satisfaction: Service is the DNA of E.SUN. Through theunique customer management core principles, E.SUN employees can upholdgood principles and intentions while serving customers.
• Principle of treating customers fairly: Build a culture of treating customers fairly
and thoroughly review each principle before launching any product or service
process.

• Customer Service Officer• Best Customer Service Employee• Branch Receptionist

E.SUN Best Customer Service Employees Award
E.SUN Bank holds an annual Best Customer Service
Employees Award event to honor outstanding
service, encourage colleagues to learn from thebest, and continuously consolidate the companywide service consensus. In 2022, a total of 166 Best
Customer Service Employees were selected, with
23 servce personnel receiving "Permanent Honors."• Customer service commitment: Emphasizing the commitment to customer
service, continuously improving the service information needed by customers,
and understanding and caring for customers through diversified channels andtwo-way communication with customers.
Case: Providing empathetic service from the customer's perspective
Miss Lin, a customer with hearing impairment, sought assistance toretrieve funds that were mistakenly transferred to the wrong account. Upon
realizing that the customer has a hearing impairment during the interaction,colleagues took the initiative to enthusiastically communicate with her
through text messages on the phone. The supervisor and colleagues
immediately consoled Miss Lin and assisted in contacting the wrong
payee, obtaining their promise to return the funds shortly. With the patient
assistance of the colleagues, Miss Lin successfully retrieved the mistakenly
transferred funds.

81

Website：Best Customer
Service Employees

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Scientifically Measuring Customer Experience and Establishing a Positive Cycle
In order to continuously improve customer rights and customer experience, E.SUN
listens attentively to customers' voices, understands their opinions, and finds specificways to make their services even better. In 2022, E.SUN conducted a satisfaction and
NPS survey on physical, digital, and call center channels. The survey results serve not
only as key performance evaluation items but also as important reference information
for service optimization. E.SUN also simultaneously manages, refines, and regularly
tracks the effectiveness of the "VOC (Voice of Customers) Proposal System" to create
a positive cycle of service experience.

NPS**

Seeking for Common Good

Overall Satisfaction & Coverage Ratio

93.38％

93.16％
91.20％

90.94％

93.38% 60.17% 86.80%
Overall satisfaction*

Our People

Coverage ratio***84.80％

85.13％

87.08％

86.80％

2019

2020

2021

2022

Coverage Ratio* Calculated based on different channels. Satisfaction rate for physical channel is
93.83%, digital channel is 94.04%, and call center channel is 92.31%.
** Net Promoter Score (NPS) was introduced from 2021, with the 2021 NPS at 53.98%.
*** Coverage ratio = Number of customers reached through the satisfaction survey /Total number of customers in E.SUN.

Overall satisfaction

Case: Mobile Banking Font Enlargement
While using the E.SUN Mobile Banking app, many customers complained thatthe font was too small and the color too light, making it inconvenient to read.
The development team prioritized these concerns and included them in thesystem adjustment schedule, focusing on optimizing font size and overall visualpresentation. In the second half of 2022, the number of related complaints had
decreased by about 50% compared to the first half of the year.

VOC Proposal System
Collect Feedbacks
Establish a comprehensive feedback channel, allowing customers toprovide feedback. In 2022, approximately 73,000 customer feedback
messages were collected.

Case: Unifying Titles in Various Notifications

Classify and Grading
Utilize AI to analyze massive amounts of customer feedback and classify
them. This process refines and identifies the most critical customer
feedback.

Gender equality awareness has increased, and E.SUN has received feedback
from transgender customers suggesting that gender should not be limited tobinary options. E.SUN highly values customer feedback, adjusted it to adopt
gender-neutral title.

Make Proposal and Improve
Take the feedback as an important reference to enhance customer
experience.
As of 2022, a total of 28 customer feedback items have been improved orare about to be launched.

82

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Seeking for Common GoodGRI: 2-23、2-24、2-25、3-3、203-1；
3.4 FinTech and Innovation GRI
G4 Financial Services Sector Disclosures: FS1、FS5、FS7、FS10

 Prefacecore system with open cloud-native technology and microservices architecture,
E.SUN has achieved remarkable results in intelligent finance, inclusive finance,and scenario-based finance. In recent years, E.SUN has actively introduced agile
methodologies and explored cloud computing applications. In the past three years,
more than 80% of fund purchases, 96% of loan applications, and 99% of foreignexchange transactions have been completed through digital channels, with theactive number of e.Fingo digital members reaching 97%. Specific achievements
are as follows:

E.SUN has long focused on fintech development, with a technology team of over
1,300 experts responsible for overall digital development, intelligent applications,
IT research, and data security management. Through cross-team collaboration andcontinuous improvement, E.SUN enhanced digital financial technology efficiency.
Information acts like the organization's nervous system, AI serves as the brain,
digital is the agile limbs, and data security is the immune system. Only by having
all these elements can a stable organic system be formed. Being the first bank in
Taiwan to apply artificial intelligence deeply to various businesses and to build a

Foreign exchange transactions

Transfer transactions

99% are completed on digital

95% are completed on digital

96% completed on digital channels.

Fund subscriptions arecard applications
79% Credit
are completed on digital

50% digital channels.

channels.

80% completed on digitalchannels.

 Services Supported

channels.

Loan applications are

Account openings are completed onchannels.

Digital foundation
Capitalizing on the technological capacity of E.SUN, we continue to develop infrastructures for digital transformation and endeavor to fulfill our sustainability commitmentsby adopting eco-friendly practices, conserving energy, and creating the value of environmental sustainability.
TopicsAI
Technology
Operational
Resilience
Resource
efficiency
Agility and
Resilience
Security
Monitoring

Strategy Directions
AI Cloud is the main research and development environment in E.SUN AI, providing data scientists with a platform for data processing, modeling, testing, andsharing. It is an innovative sandbox that has nurtured many mature and stable AI models.
E.SUN's self-built MLaaS (Machine Learning as a Service) platform has provided more than 50 AI services, allowing developers to quickly and flexibly deploy
and use APIs of AI models, becoming an important bridge connecting mature AI models and business systems.
To improve the quality of digital infrastructures, E.SUN builds SD-WAN network architecture for overseas branches.
Provide the virtualization, private cloud environment and implement monitoring management tools to allocate IT resource more efficiently.
In order to increase productivity, we implement the collaboration platforms in development process and digital tools.
From 2022, enlarging the use of container platform and reserving the flexibility of using public clouds.
Cloud Service has the diversity and high availability, and complement with on-premises services, more information service requests will be achieved by using
both cloud and on-premises service. At the same time, the security of using cloud services is ensured through a security management framework.
Improving existing processes and utilizing automated integration technology to accelerate incident response times and enhance the SOC's (Security Operation
Center) proactive cybersecurity monitoring team's incident response and investigation skills, expand the overall risk visibility, and effectively reduce the impact
of incidents.

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Journey to Net Zero

Banking for BetterProtecting Patented Technology

As a pioneer of financial technology and digital transformation, E.SUN
adopted the Taiwan Intellectual Property Management System (TIPS) in
2020, and passed the TIPS A-Level verification. Through intellectual property
risk assessment, patent proposal review mechanism, proposal rewards,
intellectual property-related advocacy education, and talent training, E.SUN
implements intelligent services and technical advantages.

Patents granted in E.SUN

152 patents

Invention patents

Utility patents

Design patents

Announced in 2022

23

16

11

As of the end of 2022

54

76

22

E.SUN's patents cover areas such as data control and information security,
identity verification, payment, AI application, interface design, and more.
These innovations are applied to create innovative financial services, providing
customers with convenient, fast, and secure experiences. Our significant
digital business proportion leads Asian financial banks. E.SUN will continue toprotect the intellectual property rights of various core businesses, strengthen
the business development foundation, and promote corporate governance tomove towards sustainable development.

Building Resilience

Our People

Seeking for Common Good

Financial Innovation Applications
Digital Process Optimization, Service Without Interruption
Optimization ofdigital accountopening processexperience

Using Intelligent models to identify high-risk customers and applying two sets of
OCR (Optical Character Recognition) technology for cross-checking document
information, along with the use of RPA (Robotic Process Automation) technology
and optimizing the approval process to reduce repetitive manual review and releasemanpower time, the fastest time required for human review is just 3.1 minutes percase, reducing the waiting time of customers by 80% and down to 4 hours.

Sinyi Realty- Property
Automated
Valuation
Cooperation

In 2022, E.SUN collaborated with Sinyi Realty, allowing customers to obtain the trial
calculation results of E.SUN's property automated valuation model 24/7, shortening
the waiting time for manual assessment of amounts and interest rate of mortgages
and optimizing service experience.

E.SUN Mobile
Banking

E.SUN Mobile Banking integrates multiple innovative services, obtaining 11 design
patents, 17 new model patents, and 7 invention patents. We achieved high growthin both the number of digital users and the frequency of digital interaction, withover 70% of active users using mobile banking, and will continue to focus on thecustomer experience and provide diverse services:(1) Multiple Authentication Modules: We offer up to 9 types of verification methods,
including voice OTP, SIM card authentication, ATM verification code, and face/
fingerprint recognition. Customers can freely choose verification methods
according to their habits, scenarios, and services while ensuring transaction
safety.
(2) Contactless Integrated Financial Services: Customers can use video services toapply for various financial services through E.SUN Mobile Banking, and complete
financial transactions with one click through E.SUN's "Fast and Easy WealthManagement" service. Break the limitations of time and space to create a friendly
new financial milestone.

E.SUN Wallet

E.SUN Bank has opened E.SUN electronic payment services to both E.SUN Bank
customers and non-customers through E.SUN Wallet, expanding the accessibility of
E.SUN Wallet's financial services. It has become Taiwan's first digital platform jointly
owned by a bank and an electronic payment service provider. In addition, E.SUN
Wallet has added the functionality of linking with a E.SUN Bank account or loading
their E.SUN credit cards for payment. This expansion has increased E.SUN Wallet's
payment coverage from credit cards to all 250 thousand channels of Taiwan Pay.
E.SUN also created the first card number checking service on a payment App in
Taiwan. This means that cardholders can shop at physical and digital channels
by loading their card number onto the E.SUN Wallet App and international mobile
payment services before they receive their physical cards.

E.SUN Extremely
Fast Revolving
Loan

E.SUN Bank offers customers flexible small loan choices. Customers can decide on
their desired loan amount and repayment period, and interest is only calculated on
the amount utilized. This meets the needs of short-term cash flow or daily expenses.

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Journey to Net Zero

Banking for Better

Building Resilience

Through E.SUN's professional financial specialist's knowledge
and self-developed AI algorithms, the Grace system can analyze
customers' investment portfolios and adjust allocations in real-time
as market conditions change. Grace system provides customized
analysis results, helping financial consultants to promptly grasp theirclients' financial situations and offer expert financial advice.

Intelligent Quality
Inspection Platform

Using voice recognition and semantic understanding
technology, the platform converts call conversations
into text and inspectors can establish rules for checking
call content on the platform, so that the system can
automatically detect the content quality of each call. This
increases the quality inspection coverage rate to 80%,
achieving benefits in process compliance, fair customer
treatment, and early warning for complaint risks.

Credit Card Fraud
Detection

Using AI to evaluate nearly a million daily credit cardtransactions, with a counterfeit transaction detection
accuracy rate 5 times greater than expert experience.
The AI model also increases the capture of fraudulent
transactions by 65% on a daily basis. Each month, about
26 million TWD in fraudulent transactions are intercepted,
enhancing customer card security.

Cybersecurity ThreatIntelligence Analysis
Visibility

The model automates the analysis of threat intelligenceand correlates with cybersecurity devices, using anomaly
trend analysis, threat dashboards, and alert mechanisms
to identify potential threats.

AI Talent Cultivation, Promoting AI Development

E.SUN AI Open
Competition

E.SUN is committed to FinTech innovation and has successfully held 8
AI competitions, attracting 6,327 teams and over 10,000 participants.
Through these competitions, E.SUN provides aspiring talents withthe opportunity to practice and challenge themselves in the AI field.
By fostering regular competitions and exchange platforms, E.SUN
expects to cultivate more AI talent in Taiwan.

Industry-Academia
Collaboration

Since 2018, E.SUN has collaborated with numerous universities
and colleges, spanning across 6 departments and 14 benchmark
professors, to develop AI technology. E.SUN has also jointly
established three "AI and FinTech Research and Development
Centers" with National Taiwan University, National Yang Ming Chiao
Tung University, and Academia Sinica, bringing together the powerof academia and industry to foster innovation in financial technology
and cultivate talent and technical development.

Seeking for Common Good

Strengthening Risk Protection, Enhancing Corporate Governance

AI Intelligent Recommendation, Customized Professional Service

Intelligent Finance

Our People

E.SUN AI Open Competition

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Journey to Net Zero

Banking for Better

Building Resilience

Intelligent Voice Navigation Service

Our People

Seeking for Common Good

After the service was launched, among the incoming calls that were recognized
for customer intent, 85.3% of customers agreed with the recognition results andwere successfully guided to the corresponding problem options. In addition, taking
the inquiry of credit card application progress as an example, the intelligent voicenavigation service can complete the voice customer service in as fast as 19 seconds,
which is significantly shorter than the traditional menu of about 60 seconds, reducing
customer operation time by 68.3%. Currently, E.SUN customer service has already
implemented 10% of Intelligent Voice Navigation Service and is expected to gradually
expand and be fully implemented. E.SUN aims to create a better customer service
experience by providing more convenient voice command options and improving
service efficiency.

The "Intelligent Voice Navigation Service" utilizes voice AI technology and models
specifically developed for financial scenarios to accurately guide customers inusing bank and credit card related services during customer service calls. Unlike
the past, where customer service centers used menus for voice service, customers
had to listen and select menu options layer by layer after calling in. With the use of
intelligent voice navigation, customers can intuitively "speak out" their questions orservice requirements, and then the E.SUN voice recognition and natural language
understanding technology can confirm customer needs and guide them to thecorresponding self-service or provide information through voice interaction, allowing
customers to obtain services in a more intuitive, simple, and fast voice interactionmode, greatly optimizing the user experience of voice call services.
Below is an actual customer usage case:
Traditional menus The interaction takes about 1 minute and 23 seconds

Intelligent Voice Navigation Service The interaction takes about 36 seconds

Hello, welcome to E.SUN Bank. For reporting lost cards, roadside assistance,and overseas emergency support, please press 0; for E.SUN STARLUX Airlines
Alliance credit card, license tax activities, and government's NT$6,000 releaseprogram related questions, please press 8; to save your precious time, forchecking your credit card statement details or credit limit, please press 885;
to use the intelligent customer service for credit card inquiries, please press
1; for deposit, loan, and foreign exchange services, please press 2; for online
banking and digital financial services, please press 3; for fund, insurance, andsecurities services, please press 4; to confirm the authenticity of fraud calls andtext messages, please press 5; for E.SUN Financial Holdings' capital increase
payment inquiries, please press 88.

Hello, welcome to E.SUN
Bank. Please directly speak
the service you want to inquire
about.
I want to know how to
subscribe to new shares.

CustomerTransferring you to inquire
about E.SUN Financial
Holdings' capital increase
payment. Is that correct?

Customer presses 88

The E.SUN Financial Holdings' capital increase payment period
is from April 19th to April 24th, 15:30. To use the intelligent
customer service for related inquiries, please press 1; to return tothe main menu, please press 8.

Yes.

Customer presses 1

Customer

Welcome to use our online
self-service. I will send a text
message to your mobile phonewith the last three digits as 123.
To confirm the correct number,please press 1; to re-enter thenumber, please press 2...

System: Welcome to use our online self-service. I will
send a text message to your mobile phone with thelast three digits as 123. To confirm the correct number,please press 1; to re-enter the number, please press 2...

(Follow-up information will be provided through text message.)(Follow-up information will be provided through text message.)86

Our Story

Journey to Net Zero

Banking for Better

Building Resilience Infrastructure
AI and FinTech Research and Development Centers
E.SUN has long been committed to promoting the development of financial technology and nurturing talent in
Taiwan. In 2018, 2019, and 2020, E.SUN Bank collaborated with National Yang Ming Chiao Tung University,
National Taiwan University, and the Academia Sinica to establish the "AI and Financial Technology Researchand Development Center" as an international hub for fintech research. The center provides free computing
equipment to support research teams in technology development and communication. For example, thecenter at National Taiwan University occupies about 50 square meters and injects over 10 million NT dollars
annually in research funding to develop various artificial intelligence applications.
Since 2018, a total of 224 students have participated in industry-academia research projects, including 35
professors. E.SUN Bank expects industry-academia cooperation to drive the development of technology andtalent, gradually cultivating forward-looking and knowledgeable AI technology professionals, injecting newvitality to Taiwan's fintech industry, and enhancing international competitiveness, making greater contributions
to the future of Taiwan.

87

Our People

Seeking for Common Good

Our Story

Journey to Net Zero

Building
Resilience

Banking for Better

Building Resilience

Our People

Over the years E.SUN stood by honesty,
integrity, and professionalism as our corevalues. The Priority is to create a corporate
culture deﬁned by disciplined governanceand risk management, further improving
compliance and internal control, andbolstering management of emerging
risks, thereby building a healthy,
resilient organization.

Seeking for Common Good

4.1 Corporate Governance
4.2 Code of Conduct and Ethic
4.3 Risk Management
4.4 Emerging Risks
4.5 Anti-money Laundering and Combating
the Financing of Terrorism (AML / CFT)
4.6 Business Continuity Plan
4.7 Information Security and Personal
Information Protection Management
4.8 Tax Governance
4.9 Human Rights Protection

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Banking for Better

Building Resilience

Our People

Seeking for Common Good

4.1 Corporate Governance

GRI: 2-9, 2-11, 2-12, 2-13, 2-15, 2-16, 2-17, 2-18, 2-19, 2-20, 2-21, 2-28, 3-3, 405-1

 Diverse board members

E.SUN FHC has a complete director selection system. Based on
E.SUN's core value and development strategies, it considers theconfiguration and diversity such as sector experiences, gender, race,
nationality. The board of directors is composed of financial industry,scholars and experts. All 5 independent directors with different
professional backgrounds are equipped with the knowledge, skills,
literacy, and skill sets necessary to perform their duties. The board
currently has 2 female directors. Its proportion of female directors
is higher than the average among all Taiwan listed companies. The
level of female involvement in decision-making will be increased inaccordance with the principle of diversity in the future. Diversified
background information as shown in the figure:5 - 10years

Board of directors
information
QR codeaged 80-89
5 years or underaged 50-59
aged 70-79

10 - 15
years

Director'
Term ofOfﬁce

15 - 20years

5 years or under: 50%

5 - 10 years: 8.3%

Improve the director selection system
Directors'
Age
Distribution

aged 50-59: 50%
aged 60-69: 25%

10 - 15 years: 16.7%

aged 70-79: 16.7%

15 - 20 years: 25%

aged 80-89: 8.3%

Note: Average term of ofﬁce is 9.25 years.

Femaleaged 60-69

Directors'
GenderDistribution

Male■ Male: 83.3%■ Female: 16.7%

Finance75%
66.7%Management
Accounting
Electronic, technology
and information
Biomedicine

25%

Real Estate

8.3%

List review - list subject to board approval． Comply with diversity standards such as gender, age, culture and nationality.
． Possess professional background, professional skills or industry experience, etc.
Shareholders vote
． The Shareholders' Meeting adopts the cumulative voting system for electing
directors.
． An electronic voting system has been introduced.

Directors' Professional Background
Investment

Nomination of directors - candidate nomination system． Corporate Governance and Nominating Committee nomination.
． Shareholders with more than 1% of shares nominated.

100%

66.7%
58.3%

89

Job Execution and Evaluation． Prepare a directors' handbook for reference by directors.
． Regularly arrange multiple internal and external courses to enhance theprofessional functions of directors.
． The board of directors, functional committees and directors are regularly evaluatedevery year.

Our Story

Journey to Net Zero

Banking for Better

Building Resilience Professional guidance and  Competent functional committees
To ensure an effective Board of Directors and reﬁne theoperational participation
Depending on the expertise of the
independent directors, they areinvited to participate in the discussion
and guidance of specific issues.
．To discuss the strategic issues
regarding the overall developmentof the Company every year, so thatthe strategic thinking can be morecomprehensive and thorough inthe process of strategy discussion
and formation. In year 2022, theindependent directors were more fully
involved in the guidance.
．To participate in the principles of fairtreatment of customers promotion
committee to help promote theprinciples of fair treatment of customers
and the culture of valuing ﬁnancial
consumer protection.
．To participate in IRB working groupmeetings to provide guidance on
the application of model evaluationin business, in order to facilitate themonitoring of IRB (Internal RatingsBased Approach) in corporate
governance, as a result to align withinternational standards and enhance
the risk control culture.
．Participate in the data management
committee, assist data governancework, and shape data governanceculture.
．To actively direct the "customer
experience improvement project" tohelp improve customer experience anddevelop innovative services.
．To assist in planning and serving as
a lecturer for supervisors and new
employees training courses.

quality of board decisions, the Audit Committee, the Corporate
Governance and Nomination Committee, the Remuneration
Committee, the Board Strategy Development Committee, theSustainable Development Committee and the Risk Management
Committee are created by authority and function under the Boardof Directors and are responsible for deliberating proposals andmajor issues in the economy, the environment, the society andrisks. The functional committees are composed or participatedby independent directors, so that the committee's decisionmaking and recommendations are forward-looking, objective
and comprehensive, effectively implement the mechanismof independent supervision and checks and balances, and

Our People

ensure that all resolutions and actions of the board of directors
are put forward After the report and discussion of the boardof directors, the board of directors asked questions or madesuggestions on the aforementioned proposals at the meeting.
After full discussion, the directors also inspected and supervised
the implementation of the plan from the perspective of various
implementation progress, and urged the management team tomake adjustments in due course. Those who have an interestin the director himself or the legal person he represents
should avoid it, and some proposals are also submitted to theshareholders' meeting for report and discussion, which is in thebest interest of the interested party.

． Established in 2004.
． 6 meetings were called. The averageattendance was 100%.
． The Committee is composed of 5
independent directors and Independent
Director RyhYan Chang is the convener.

． Established in 2006.
． The Committee is composed of 5 independent
directors and Independent Director ChunYao
Huang is the convener.
． 3 meetings were called. The averageattendance was 100%.

Remuneration
Committee． Established in 2007.
． 2 meeting was called. The
average attendance was 100%.
． The committee is composed of
5 independent directors and 5
directors. Chairman Yung-Jen
Huang is the convener.

Board Strategy
Develop-mentCommittee

Sustainable
Development
Committee． Established in 2011, renamed in 2021.
． The committee is composed of 3 independent
directors and 2 directors. Chairman Yung-Jen
Huang is the convener.
． 3 meetings were called. The averageattendance was 100%.

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Seeking for Common Good

Audit
Committee

Corporate
Governanceand Nomination
Committee

Risk
Management
Committee． Established in 2007.
． 2 meetings were called. The averageattendance was 100%.
． The committee is composed of 5
independent directors and 2 directors.
Independent Director Ying-Hsin Tsai isthe convener.

． Established in 2021.
． 5 meetings were called. The averageattendance was 100%.
． The committee is composed of 3 independent
directors and 3 directors. Director Joseph N.C.
Huang is the convener.

Our Story

Journey to Net Zero

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Building Resilience Protection of shareholders' rights and interests

 Attendance of directors

A total of 7 board meetings will be held in 2022. The chairman will be the chairman of
the company, and the overall attendance rate will be 100%. In order to continuously
strengthen directors' participation in the operation of the board of directors, E. SUN
went beyond the legal requirements and independently stipulated that "the annual
attendance rate of directors should be at least 80% or more." Board EffectivenessEvaluation of board performance
Internal evaluation
The Company completed the 2022 board and functional committee performance
evaluation. The results are presented below:
1. The board actively partakes in the Company's operations; fulfills its duties to
instruct and supervise the Company's strategies, major business activities, andrisk management practice, and establishes suitable internal control system.
According to the evaluation result, 49 items were rated "excellent", total scoringrate of 100%.
2. The overall performance of the functional committees was in line with corporate
governance principles.

 Training for directors

In 2022, each director will receive an average of 10.25 hours of training, which is
6 hours higher than the legal recommendation. E. SUN planned education andtraining courses for the board of directors. The company held three 9-hour director
training courses, including "principle of treating customers fairly", "prevention ofmoney laundering and the impact of IRB law introduction on risk management"and "important information security standards and compliance" ;In addition toplanning course themes and arranging courses every year with reference tochanges in internal and external environmental conditions and development
needs, and providing directors with information on multiple courses organizedby training system institutions from time to time, assessing their own professional
background and needs to increase the arrangement of courses, for example:
there are other directors who also Participate in "Challenges and Opportunities
for the Financial Industry in the Net-Zero Era", "How to Effectively Maintain Brands
from Recent Famous Trademark Cases", "How the Board of Directors Supervises

Each director will receive an average of
10.25 hours of training, which is 6 hours
higher than the legal recommendation

Seeking for Common GoodESG Risks and Create Sustainable Competitiveness of Enterprises" and "Understanding
Related Parties from Practical Cases", "Transactions and Unconventional Transactions"and other courses, in order to fulﬁll the duty of care of faithfully executing business andbenevolent managers, and give full play to the functions of business decision-making
and leadership supervision.

The 2022 shareholders' general meeting will be held physically and assisted
by video, providing shareholders with multiple channels for exercising theirrights. In addition to continuing to proactively report proposals such as "speciﬁc
promotion plan for sustainable development", "communication between the Audit
Committee and the head of internal audit", "adjustment of certiﬁed accountants"and "remuneration policy for directors and managers" at the shareholders'meeting, among which "directors and managers Manager’s Salary Remuneration
Policy Case", report on the company’s directors’ and managers’ remuneration
payment standard review procedures, and add a new level of individual directors’
remuneration. In order to protect the rights and interests of shareholders andimplement equal treatment of shareholders, insiders are expressly prohibitedfrom using undisclosed major internal information to buy and sell securities, anddirectors are regulated that they are not allowed to trade stocks during the closed
period before the ﬁnancial report announcement.

10.25

Our People

The functional committees served their purposes as intended, effectively making
the board more effective. The Company presented the results of the 2022 director
performance evaluation on February 20, 2023, based on self-assessments
conducted by the directors themselves and peer reviews．Self-assessment score: 99.40%.
．Overall self-assessment score: 99.80%.
External evaluation by professional institutions
The Company has been devoted to planting corporate governance culture in thecompany system and daily operation. The Company has commissioned external
professional organizations to conduct performance evaluation on the board every
three years and to execute corporate governance evaluation certification every two
years. In 2018, 2020 and 2022, the Company was awarded the CG6011 (2017) ,CG6012 (2019) and CG6013 (2021) the corporate governance system evaluation,"exceptional" certification, and the relevant recommendations were listed as priority
corporate governance improvement plans.

41.67%

Proportion of
independent directors

Training of directors
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Building Resilience Independence of directors and conﬂicts of interest prevention

Our People

Seeking for Common Good

director remuneration to personal performance and the Company's future risks,specific ratios are set for a number of "personal performance" indicators that weighon director remuneration. Also clearly spelled out is the provision that the Board of
Directors may resolve to cut back or recover director remuneration if any director isdetermined to have been involved in a moral hazard event or otherwise undermined
the Company's public image and reputation. On January 22, 2021, the Company
decided that director remuneration shall be withheld if any director concurrently holds
E.SUN's managerial positions; this was put into force from the distribution of director
remuneration for 2020. Relevant policies were reported at the shareholders' meetingof year 2022.

E.SUN FHC currently has 5 independent directors, accounting for approximately 41.67%
of the Board of Directors. To facilitate business development and to take into accountof business needs, 2 directors also serve as managers of the Company. In addition, allof the outside directors comply with the independence standard. E.SUN drafted "Rules
Governing the Scope of Powers of Independent Directors," and the content includes "If
an independent director objects to or expresses reservations about the matter, it shall berecorded in the board meeting minutes," "The Company or any Board member shall notinterrupt, refuse or circumvent the independent directors from carrying out their duties."and "The independent directors, when carrying out their duties, may request the Board
to appoint relevant personnel or professional specialists for assistance as they deem
necessary." The rules above not only help independent directors dedicate to their duties
but also effectively enhance the function of the Board and the overall performance of theCompany.

Metrics for Evaluating Performanceof the President

To ensure fairness, the "Stakeholder Transaction Policy" has been created as a means
to regulate security of transactions conducted between the Company and subsidiaries
with stakeholders. The policy requires all transactions to be conducted in conﬁdentiality,
fairness, and utmost full faith in the best interest of the Company. Furthermore, measures
must be taken to prevent conﬂict of interest and exploitation of illicit gains.

Business / Financial Performance． Financial Performance: Earnings
capacity and management efficiency,such as ROE, ROA, EPS, C/I Ratio, etc.
． Business Performance: Comparison
with Taiwan's top five banks in total
shareholder return, overall businessmarket share growth rate.

Culture and Brand Management． Culture and brand management． Risk management

20%

According to E.SUN FHC's Board of Directors Conference Rules and Audit Committee
Charter: if a director or committee member and the corporate entity that the director or
member represents, is considered a stakeholder to the discussed agenda, the director or
member shall immediately explain the important content of such stakes and disassociatefrom all discussions and voting. In which case, the director or member may not exercise
voting rights on behalf of other directors or members.

20%

30%

Metrics for
Evaluating
Performance of the
President

In the annual report, E.SUN FHC fully discloses the concurrent positions of the directors,
the top ten shareholders and related party transactions (including donations). For details,
please refer to P.13~15 of the annual report and appendix ﬁnancial report P.79.

30%

Remuneration Policy
In accordance with the Company's Rules for Remuneration of Directors, director
remuneration is subject to deliberations of the Remuneration Committee and approvalof the Board of Directors. Linking director remuneration to business performance intandem with related policy, the Company takes an overall look at the total amountof such remuneration, way of payment, and future risks. The growth rate in director
remuneration for any given year is capped at that recorded a year earlier in theevent of a substantial net profit decline. To establish a mechanism for better linking

92

Strategic Development

Infrastructure． Development of strategies to uphold
E.SUN's leading edge
． Development of E.SUN as a brand of first
choice． Material ESG target: sustainable financedevelopment, climate change action,
financial inclusion, etc.

． Talent cultivation, system building,information development． Innovative and diversified financial
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Building Resilience

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Seeking for Common Good

Remuneration and Performance of Managers
In order to encourage executive managers, key professional talents and the entire personnel to pursue long-term overall performance, E.SUN has taken into account avariety of indicators including financial outcome, business operation, brand, ESG, talent cultivation, continued service, risk management, etc. to formulate a long-term
incentive system.

Purpose． To encourage E.SUN managers to achieve and surpass Company goals, create profit, improve business performance, take into account the reasonable linkage to future risks andevaluate managers' remuneration.

Review process． Manager remuneration policies and structures are reviewed by the Remuneration Committee and submitted to the Board for decision.

Salary structure． Fixed pay comprises basic salary and subsidies or allowances that are determined on the basis of work experience and take into account what is being paid for comparable
positions across the industry.
． Variable pay comprises bonuses and compensations that are determined on the basis of the Company's overall performance and personal contributions and take into accountfuture risks. On top of highlighting the Company's core values, these are meant as a token of recognition for outstanding leadership and management.
． Long-term compensations intended as incentives are awarded in the form of equities with a deferral of five years. The strike price is set at a future share price so as to effectively
link manager compensations to the Company's long-term performance.
． Retirement policy applies to general employees.

Risk linkage． Manager bonuses can be affected in the event of a major risk event affecting the Company's business reputation or due to internal management mishap or employee misconduct.
This shall achieve the effect of risk control and generate high linkage with E.SUN's long-term overall performance.

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Our People

Seeking for Common Good Incentive Reward System

In order to encourage executive managers, key professional talents and the entire personnel to pursue long-term overall performance, E.SUN has taken into account a variety ofindicators including ﬁnancial outcome, business operation, brand, ESG, talent cultivation, continued service, risk management, etc. to formulate a long-term incentive system.
Subject

Implementation

CEO/President． Variable compensation includes short-term and long-term incentives. 30% of CEO's short-term bonus shall be paid by a deferred equity-based method, and 100% of CEO's longterm bonus shall be distributed in the form of stocks with vesting period of 5 years.
． Short-term incentive shall take into account related performance metrics in recent 5 years.
． With Year T as the departure point, long-term remuneration offers deferred payments in proportion to goal attainment in Year T+3, Year T+4, and Year T+5.
． A portion of the remuneration already paid could be reduced, withheld, delayed or recovered in the event of a major risk event affecting the company's business reputation or due
to internal management mishap or personal error for 5 years. This shall achieve the effect of risk control and generate high linkage with E.SUN's long-term overall performance.

Key talents． Phantom Shares are offered with a deferred period of 5 years. E.SUN remains the right to withdraw the stock if there is any attributable breach of code of conduct within the
duration.
． Phantom Shares link to the future stock price. It is designed to drive key talents to pursue long-term performance.

Applied to all
employees． For 2 consecutive A+ employee: promotion in advance． For 3 consecutive A+ employee: more variable pay and educational training

Long-term
incentive practicefor department
performance． Summit Award and marked-up bonus for departments which have superior performance for 2 years in a row.
． Laurel Prize and marked-up bonus for departments which have superior performance for 4 years in a row.
． E.SUN Outstanding Contribution Award was established to inspire every department to exceed their goals in the long run and to make contribution.

 Management Ownership Requirements

E.SUN has been committed to professional management and expert leadership. Based on our longterm and stable management, over 90% of E.SUN employees hold E.SUN stocks. In "E.SUN FHC
Executives Election Rule," for all vice presidents after 3 years of appointment, the market value of the
E.SUN stocks they hold, including those held by spouse, children and employee savings association,must be 5 times more than their annual base salary. Similarly, the standard set for CEO's after 3 years
of appointment is 10 times more than CEO's annual base salary.

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Our People

Seeking for Common Good Remuneration of Executives
Title

12.31.2022 Unit: NT$ thousand

Remuneration of Employees

Remuneration of Directors

Name

SalaryIncentive Pay

Total

Cash

Cash

Short-term (cash+stock)

Long-term (stock)

Chairman of E.SUN FHC

Yung-Jen Huang

22,47400022,474Chairman of E.SUN Bank

Joseph N.C. Huang

21,52200021,522

CEO/ President of E.SUN FHCMagi Chen

0

7,671

16,3460

24,017

President of E.SUN Bank

Mao-Chin Chen

0

7,598

12,976

2,427

23,001

DirectorNote 2(see below for the list)

21,39900021,399

Independent directorNote 3(see below for the list)

34,65800034,658

Senior Executive Vice PresidentsNote 4(see below for the list)

67,837

61,776

5,339

134,952

Note 1: Above remuneration amount is through accrual basis of accounting.
Note 2: List of Directors: E.SUN Culture and Education Foundation (Representative Joseph N.C. Huang); Hsin Tung Yang Co., Ltd. (Representative Jackson Mai); Fu-Yuan Investment Co., Ltd. (Representative RongChu Chen); Shang Li Car Co., Ltd.(Representative Chien-Li Wu).
Note 3: List of Independent Directors: Ryh-Yan Chang, Chun-Yao Huang, Ying-Hsin Tsai, Hung-Chang Chiu, Ruey-Lin Hsiao.
Note 4: List of Senior Executive Vice Presidents: Ben Chen (retired on 5.1.2022), J. C. Wang, Cheng-Chou Hsu (retired on 4.15.2022), Oliver Hsieh, Wan-Li Hsieh, Jyh-Shing Roger Jang, L. C. Lin, Jung-Hua Lin, WuMing Hsieh, Louis Chang, Cathy Kuo, Yi-Hsin Tseng, Jung Chun Chen (assuming ofﬁce on 1.22.2022), Danny Tang, Jeff Liu (assuming ofﬁce on 1.19.2022), Yao-Pin Lin (transferred on 1.22.2022), Te-Ming
Chung, Mei-Ling Liu (retired on 3.15.2022), Fion Ouyang, Huai Tsung Liu.
Note 5: CEO / President Magi Chen holds 3,970,000 shares of E.SUN FHC stock, with their market value being 12.56 times of her salary. President Mao-Chin Chen of E.SUN Bank holds 4,974,000 shares of E.SUN FHC
stock, with their market value being 15.89 times more than his salary. E.SUN FHC senior executive vice presidents hold 43,753,000 shares in total, and the average market value per person is 15.65 times morethan their salary. Shares held by the presidents and senior executive vice presidents including those from spouse, minor children and Employee Stock Ownership Plan; they're without pledge and aren't linked
to ﬁnancial derivatives. The market value, 24.27, comes from the average value per share of the last 30 business days in 2022.
Note 6: CEO / President Magi Chen's salary and bonus received in 2022 was 18.4 times more than the mean compensation of employees, and 20.9 times more than the median compensation of employees.
Note 7: The percentage increase in the highest individual total annual remuneration is -1.19 times the percentage increase in the median total remuneration for all employees.

 Contribution to industry development

The financial holding company and its subsidiaries actively participate in activities organized by The Bankers Association of the Republic of China, Taiwan Securities
Association, Trust Association of R.O.C., TABF and TFSR in order to promote the development of the domestic financial industry.
Name
Oliver Hsieh,
Chief Risk Officer
Louis Chang,Senior Vice President

Title

Job Description

Vice Chairman, Risk Management Committee, Bankers
Association Member, Risk Management Section,
Operations Committee

Provide risk management skills and recommendations on policies; research on regulations of crisis management in
the banking industry.

Convener of the BAROC Banking Industry Finance-related
Carbon Emission Calculation Handbook Task ForceCoordinate the publication of the domestic bank's disclosure and verification of investment and financing portfolio
financial carbon emissions handbook and provide timeline planning suggestions to deepen sustainable development
and achieve net zero goals.

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4.2 Code of Conduct and Ethic

Banking for Better

Building Resilience

Our People

Seeking for Common GoodGRI: 2-23、2-24、2-25、2-26、2-27、3-3、205-2、205-3、206-1
SASB：FN-CB-510a.1、FN-AC-510a.1、FN-CB-510a.2、FN-AC-510a.2

E.SUN builds ethical corporate culture and emphasizes codes of conduct and has established guidelines for all employees. The responsible unit for ethical management is the
Corporate Governance and Nomination Committee, which assists the board of directors and management in formulating and supervising the implementation of ethical management
policies and prevention programs and regularly reports to the board of directors. Each E.SUN director and senior manager signs a statement of compliance with the integrity
management policy, stating their commitment to the principles of ethical management in their business operations, and actively assists the board of directors in fulﬁlling its commitment
to ethical management and supervising the company's internal management and business activities to comply with ethical management. Each E.SUN employee also signs the "E.SUN
Employee Service Code of Conduct and Behavior Standards " upholding high standards of self-discipline and practicing ethical management. Related guidelines are as follows:"Ethical Corporate Management Practice Principles" and "Procedures for Ethical Management and Guidelines for Conduct"
Establishing sound corporate governance and risk control and management mechanisms, clearly stipulating that directors, managers, employees,
trustees, or those with substantial control should comply with the Company Act, Securities and Exchange Act, Business Entity Accounting Act,
Political Donations Act, Anti-Corruption Act, Government Procurement Act, Act on Recusal of Public Servants Due to Conflicts of Interest, rules andregulations related to TWSE Listed and TPEx Listed Companies, other relevant laws concerning commercial operations or the operation of group
enterprises and organizations in their respective locations, in order to implement ethical management.
"Code of Ethical Conduct Directors"
Directors should comply with laws and regulations, avoid conflict of interest and self-serving actions, fulfill confidentiality and loyalty obligations,prohibit unfair and insider trading, and be responsible for protecting and properly utilizing company assets, among other duties. The content iscommunicated to all directors, with a 100% coverage rate.
"E.SUN’s Commitment to Anti-Corruption, Anti-Bribery, and Anti-Competition Behavior "When conducting business with others, E.SUN first assesses the legitimacy of the counterparties, fully understands their ethical management
status and compliance with corporate social responsibility policies, and clearly expresses its rejection of directly or indirectly providing, promising,requesting, or accepting any undue benefits in any form or name. Contracts explicitly stipulate compliance with ethical management andcorporate social responsibility clauses. E.SUN adopts a zero-tolerance approach to corruption and bribery, committing that there will be no formof corruption or bribery in its global business operations.
"the Treating Customers Fairly Policies and Strategies"
Extending corporate culture and ethical spirit to subsidiaries and creating a healthy financial market and environment by adhering to principles offairness, equality, mutual benefit, and integrity, prioritizing and safeguarding the rights and interests of financial consumers.
"the Regulations Governing the Concurrent Serving Management for Responsible Persons"
Implementing management of concurrent serving for directors and managers, setting clear principles for holding concurrent serving, and requiring
those responsible to fulfill confidentiality and loyalty obligations and prevent conflicts of interest.

E.SUN links employee performance and compensation, incorporating ethical management into employee performance evaluation items and human resource policies, and establishingclear and effective disciplinary systems. Through self-inspection by business supervisory units and self-assessment of compliance with laws and regulations, effective control andimplementation are achieved. E.SUN also conducts annual compliance risk assessments, selects high-risk units for compliance testing, and adjusts and improves its legal compliancemechanisms. Furthermore, the audit unit independently audits risk-oriented audit checks to ensure the overall system's operation and jointly manage and prevent dishonest behavior.

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Banking for Better

Building Resilience Education and Training System

Participation of the entire E.SUN workforce
in tests on regulations governing ethicalmanagement, stakeholders, and personal
information protection

Seeking for Common Good Whistleblowing System

Education and Training: E.SUN organizes various training courses covering financial
laws, E.SUN Employee Service Code of Conduct and Behavior Standards. These
courses aim to educate and promote integrity in business operations. Case studybased discussions are used to strengthen the concept and implementation of thethree lines of defense, embedding the culture of honesty among supervisors andcolleagues. The total course duration is 385.5 hours. Additionally, early stage job
description meetings provide briefings on business overviews and general financial
laws to prevent dishonest behavior.
Compliance: The Compliance Division drives compliance education and training for all
employees. In 2022, the focus is on "Ethical Corporate Management Practice Principle
and Procedures for Ethical Management and Guidelines for Conduct" Through videos
and cases to disseminate employees on important matters to note during businessexecution, with a participation rate of 100%.
Annual Tests: We conducted annual online tests for 100% of our employees. The tests
cover E.SUN FHC Ethical Corporate Management Practice Principles and Proceduresfor Ethical Management and Guidelines for Conduct. The 2022 test participation rate is100%.
Appraisal Systems: Our employee's integrity should be integrated into performanceappraisal, and if anyone who violate codes of conduct regulations, the performance
result would be worse than "Satisfied".

100%

Our People

SASB : FN-CB-510a.2、FN-AC-510a.2

To establish a culture of integrity and transparency and promote sound operation,
E.SUN has formulated the Procedure For Handling Whistleblowing Reports , which isapplicable to its subsidiaries, foundations with direct or indirect cumulative donations
exceeding 50%, and other organizations or legal entities with substantial control. The
procedures clearly deﬁne the acceptance and investigation timeline, and establish
dedicated handling units and independent investigation units. E.SUN also sets up
whistleblowing hotlines, email inboxes, and mailing addresses on its ofﬁcial website
and intranet for both internal and external personnel. The identity of whistleblowers
is kept conﬁdential, and adverse personnel measures against internal employee
whistleblowers are strictly prohibited. Anonymous reporting is also allowed to actively
prevent dishonest, fraudulent, and criminal activities.
In 2022, a total of 33 cases were accepted through whistleblowing and nonwhistleblowing channels, all of which pertained to non-signiﬁcant violations ofinternal regulations, consumer disputes, or events unrelated to banking operations.
There were no violations related to integrity management. While these reports wereimmediately presented to the Compliance Division, the President appointed an
appropriate department to conduct investigation. Investigation results were thensubmitted to the President, with the whistleblower's identity kept conﬁdential andthe departmental supervisor of the accused also given notice, and the relevant
implementation will be reported to the Corporate Governance and Nomination
Committee and the Board of Directors.

100%

Participation of the entire Board of Directors
in training on ethical management andhandling of material internal information

 Ethical Violations SASB : FN-CB-510a.1、FN-AC-510a.1

Year

2019

2020

2021

2022

Totals

31

28

49

33

After investigation, it has been confirmed that there is aviolation of integrity management and code of conduct.

3

1

4

0

2019

2020

2021

2022

Integrity Management Violation

E.SUN did not engage in any code of conducts violations, including corruption or bribery,
discrimination or harassment, customer privacy, conﬂicts of interest and money launderingor insider trading in 2022. Likewise, no suit or penalty was ﬁned. Meanwhile, all businesssupervisory units and overseas business locations were told to take a hard look at theCode of Ethics for Salespeople among other key compliance issues for the year. Next, theCompany's Compliance Division went on to conduct inspection and evaluation with a viewto effectively enforcing risk management and reducing corruption risks.

97

Through whistleblowing channels

1

1

4

0

Through other channels (such as self-examination, audit, etc.)

0

5

0

0

Total breaches of integrity management

1

6

4

0

Investigation completed and closed

1

6

4

0

Under investigation

0

0

0

0

Corruption

1

1

0

0

Note: If it is an insigniﬁcant violation of internal regulations, consumer disputes or incidents unrelated
to banking business, it will not be included in the calculation of the number of cases of "integrity
management violations".

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4.2.1 Legal Compliance

Banking for Better

Building Resilience

Our People

Seeking for Common GoodSASB : FN-CB-510a.1、FN-AC-510a.1

E.SUN has been paying long-term attention to domestic and international financial
policies and regulatory changes. While actively expanding its business, it strictly adheres
to relevant laws and regulations. The mid-term goal is to establish a group-wide riskbased approach for identifying, assessing, controlling, measuring, monitoring, andindependently reporting compliance risks, in order to comprehensively control, supervise,and support domestic and overseas departments, branches, and subsidiaries in theirrespective businesses, cross-departmental and cross-border compliance matters. The
Action Planlong-term goal is to cultivate a compliance culture so that all employees voluntarily
comply with laws, regulations, and business rules, uphold integrity and discipline, andimplement the principle that "no business shall override the risk and all services shall not
exceed the regulatory boundary.In 2022, E.SUN has no illegal punishments and major
deficiencies that should be disclosed as stipulated in the "Standards for Items to be
Recorded in the Annual Report of Financial Holding Companies", and there are no casesof penalties for violating labor and environmental laws and regulations.
Achievements in 2022

Self-Assessment on Regulatory
Compliance

Conduct two self-assessments on regulatory compliance to inspect whether business units comply with laws and regulations and oversee improvements.

Regular Reporting to the Board of
Directors and Audit Committee on
Regulatory Compliance

Report to the Board of Directors and Audit Committee twice in 2022, enabling the governing units and senior management to fully understand theimplementation status of regulatory compliance matters.

Legal Communication and Consultation

Establish a legal communication and consultation system, where the regulatory compliance management unit provides important regulations to regulatorycompliance personnel of all units via email and posts on the internal web page for all E.SUN colleagues to reference for their business.

Legal Coordination and Communication

In 2022, E.SUN held 8 legal compliance meetings, including 4 domestic and 4 overseas legal compliance meetings. During these meetings, important legal
compliance issues were discussed, implementation experiences were shared, and cross-subsidiary issues were communicated and coordinated to ensure
consistent internal opinions within the group.

Internal Regulation Review

E.SUN supervised the timely updating of various operation and management regulations according to laws and regulations, and promptly communicated withall units through a communication mechanism to ensure that all business activities comply with legal requirements.

Legal Compliance Assessment for New
Products (Services)

In 2022, legal compliance assessments were conducted for 43 new products and services through the "New Product Service Legal Compliance Assessment
Opinion Letter" approval process, ensuring their compliance with laws and internal regulations.

Evaluation of Legal Compliance
Implementation

E.SUN conducted evaluations of legal compliance implementation for the financial holding company and its subsidiaries, aiming to improve the effectivenessof the legal compliance system.

Legal Compliance Visits

In 2022, 16 legal compliance visits were completed. Through bilateral communication, the visited units gained a clearer understanding of their legal
compliance implementation in areas such as personal data protection, anti-money laundering, cross-border business, financial-friendly services, fairtreatment of elderly customers, and other legal compliance matters.

Online Legal Compliance Visits ofoverseas units

In 2022, in response to the COVID-19 pandemic, online meetings were held individually with the Tokyo branch, Hong Kong branch, Singapore branch,
Australian branch, and the Chinese subsidiary to discuss the operational status of overseas units. The meetings aimed to understand the communication ofimportant regulations, legal compliance training, and the execution of compliance tracking matters, as well as to follow up on the improvement of compliancedeficiencies, thereby strengthening legal compliance governance.

Legal compliance education training,and online quizzes(I) External courses:
A total of 897 courses on legal compliance were attended by E.SUN employees, organized by TaiwanAcademy of Banking and Finance , Taiwan Corporate
Governance Association, and Securities and Futures Institute. The total number of attendees was 12,444, with a total training time of 97,970.5 hours.
(II) Internal courses:
A total of 101 training sessions were held, including new employee training, mid-level officer training, management courses, and various professional
training classes, with a total of 9,377 attendees and a total training time of 181,498.4 hours.
The training sessions focused on regulations, auditing, risk management, and anti-money laundering, with a total of 29,343 hours dedicated tostrengthening employees' legal knowledge and promoting proper concepts. In addition to lectures, case studies were used to enhance the understandingof the three lines of defense mechanism and jointly manage and prevent dishonest behavior.
(III) Other:
Important provisions and cases on legal compliance were promoted during morning meetings or internal training sessions. Each month, legal compliancematerials were provided, and units were required to arrange legal compliance promotion or provide online training courses during their "Legal Compliance
Advocacy Time."

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January

Training Course Name

Month

Three Lines of Defense
in Internal Control andPunishment Case Studies

Training Course Name

July

Ethical Corporate Management PracticePrinciples, Procedure For HandlingInternal Significant Information, andProcedure For Handling Whistleblowing
Reports

 An inherent risk management culture

February

Personal Data Protection

AugustPrinciple for Financial Service Industries
to Treat Clients Fairly (including Financial
Consumer Protection Act , Financial
Friendly - CRPD, and Elderly Friendly)
Online Course

March

Principle for Financial Service
Industries to Treat Clients Fairly

SeptemberAnti-Money Laundering

April

Labor Law Regulationsand Human Resources
Management

October

Cross-border Business Regulatory
ComplianceMay

2022 Regulatory Compliance
Lecture Notes

November

2022 Violations of Financial Regulations
Penalty Cases

June

Regulatory Compliance SelfAssessment Checklist

December

Regulatory Compliance Self-Assessment
Checklist

The vision of risk management is to protect assets, enhance customer
service quality and improve shareholders' values, while hoping to control
the possible risks generated in various business operations within atolerable range, and to achieve a reasonable balance between risks andreturns while securing adequate capital to back up business development.
To effectively identify, assess, monitor and control all types of risk,
E.SUN has always followed the philosophy of "no services or operations
can be considered beyond risk" while considering the balance between
risk management and performance assessment. The aspect of risk
management has been included in performance appraisal to uphold thehighest guiding principles of risk management: safety and liquidity first,
profitability second, growth next, and always pay attention to the public
interest.

8,267

Passed8,221

Failed4Absent42

Build up andmaintainrisk culture

Improve credit
rating andreputation

Execute excellent
risk management

In 2022, E.SUN conducted the "Legal Compliance" e-Learning test for certain employees,with a passing standard of 90 grade. The test results are shown in the table below. To makesure that all employees have a solid grasp of applicable laws and regulations, departmental
compliance ofﬁcers were already urging those who failed in or did not take the test to take amakeup test.
Numberof TestApplicants

Seeking for Common Good

4.3 Risk Management GRI: 102-11、102-30

Compliance Training Course of 2022
Month

Our People

・Public, fair and transparent
information declaration
・Validation risk vs. profit
rationality
・Satisfactory asset quality
・Early risk warning andavoidance

AverageScore

Adequate
capital

96.18

99Provide strategic
suggestion for
decision making

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 Risk management organization andmanagement mechanisms
E.SUN FHC Board of Directors is the highest governing
body in risk management mechanism. The Board of
Directors approves overall risk management policies andimportant decisions based on the overall business strategies
and environment and takes ultimate responsibility for overallrisk management.
To strengthen risk governance communication, coordination,
reporting, and recommendation within the Board of
Directors, the Company has established a board level
Risk Management Committee responsible for reviewing
business risk management policies, ensuring compliancewith international risk management regulations, promoting
and creating risk management systems, and reinforcing thefunctions and duties of the Risk Management Committee
over time. For example, recently climate change risk factor
has been incorporated in the risk appetite mechanism, andstress tests have been performed to evaluate the impact on
the Company's overall risk level to decide the quotas for theCompany's various business operations. We also have theRisk Management Committee under the management level
and convenes quarterly and when necessary, subject to theneeds for strategic development or environmental changes.
The RMC reviews the appropriateness of risk mitigation
measures proposed by risk management units at every
level. The Committee is responsible for matters pertaining tocredit risk, market risk, operational risk, and asset & liability
risks. Reports of overall risk management implementation
status are made to the Board of Directors periodically.
Each level of risk management units is responsible for
identifying and managing the risks of their products,
activities, processes, and systems, establishing risk limits
and monitoring indicators, and formulating standard
operating procedures. They also report risks based on theirbusiness content. To face with the major issues, each unit
needs to assess what kind of impact E.SUN may face on theoverall operation and formulate corresponding management
policies, so as to effectively manage its impact and develop
possible management goals is the purpose of sustainable
management. Additionally, to strengthen the three lines

Banking for Better

Building Resilience

Our Peopleof defense in risk management, legal compliance, andinformation security, and to help all lines of defense
effectively fulﬁll their responsibilities, E.SUN has alsoestablished the "E.SUN Bank Internal Control Joint Meeting
Guidelines" to enhance internal control, knowledge, andinformation sharing.

Established the risk managementawareness

Extend risk horizon through training
To raise risk awareness and to systematically extend the risk
horizon, E.SUN ensures that every E.SUN employee starts
learning about E.SUN's core philosophy regarding risk,
discipline and process since the ﬁrst day on the job. E.SUN
employees in different departments and at different stagesof their careers are also provided with appropriate educationand training on risk management.
On top of physical courses, E.SUN also draws on digitaltechnology to organize online training or tests. In particular,
the Covid-19 pandemic prompted the introduction of awide range of online training and interactive courses in2022. A total of 3,661 E.SUN employees completed risk
management training by taking both e-learning and physicalcourses. Of the trainees, 97-100% passed the e-learning
tests conducted afterwards. Separately, the Company's
Risk Management Division publishes a quarterly bulletin to
introduce the latest risk management regulations, trends,
or practices. From time to time, departments responsible
for product lines also offer educational materials for internal
training at business units.
In devising regulations for evaluation, the Company
places special emphasis on considering performance inboth business endeavors and risk management. Of thethree key gauges for evaluating employee performance,"core and management competences" takes accountof awareness of risk management and the three lines ofdefense model as well as risk control in daily operations.
Likewise, risk management is a key measure for evaluating
the performance of senior managers. A well-deﬁned
reward and penalty scheme is thus adopted to incentivize
managers and high-performing employees to strive for risk

100

Seeking for Common Good

management over the long term, thereby bolstering theCompany's risk awareness throughout.
Reporting Mechanisms and Communication Channels
To undertake risk management efﬁciently in a timely
manner, E.SUN has established a series of reporting
mechanisms and communication channels. Upon detecting
risk events or potential risks in daily operations, employees
are encouraged to notify departmental supervisors rightaway. They can also present risk management observations
and recommendations in work journals. In 2022, a total of
1,014 work journal entries had to do with risk management
or internal control, with 43 coming with speciﬁc suggestions.
All E.SUN departments are supposed to conduct risk
management and internal control self-evaluation eachquarter. In 2022, the Risk Management Division analyzed
more than 3,000 evaluation reports from product lines,
based on which it went on to compile the most importantand common risk types and cases for presentation to
managers and mid-ranking ofﬁcers during E.SUN's annual
conference. At year's end, the Company routinely conducts
a survey to canvass the opinions of all employees. Of the
6,591 questionnaires thus collected in 2022, 204 touchedon risk management. The Chief Risk Ofﬁcer and the Risk
Management Division then went on to make improvement
based on survey results, report this to the President andother senior managers, and respond by videoconference toemployees who had given their opinions previously.

 Accomplishments in Risk Managementin 2022

Risk assessment for new product and service
Before launching innovative products or services, thedevelopment team must list all potential risks, such as
market risk, liquidity risk, credit risk, operational risk andemerging risk, to further devise or use existing relevant
control mechanisms. The Risk Management Division,
Compliance Division, and Information Security Division
will jointly review to ensure it complied with internaland external laws and regulations and the risks arecontrollable before providing them to clients. In the casesof product or service adjustment or refinement wherecompliance, internal control or risk management is likely

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Building Resilience

to be affected, risk assessment must also be conducted. In 2022, 217 domestic and oversea business risk
evaluations were completed.
Credit Risk Management Mechanism
To improve E.SUN's risk management mechanism, we keep improving IRB management and deepening theusage of credit rating data to the loans granting procedures. We establish a robust data maintenance systemand disciplines to ensure the accuracy, completeness, and appropriateness of data. In regard to corporate
governance, 4 board reports and RMC reports have been made in 2022 to collect the professional guidance bydirectors and senior management to strengthen the risk assessment process, management mechanism, as wellas risk governance.
To comply with Basel Framework, we developed the advanced stress-test technique in 2022. Combined scenario
setting and internal credit rating data, stress test could let us know how the bank's portfolio changes under the
possible scenarios. Aligned with stress test result, Risk Management Division regularly monitor risk appetite andconcentration limit to ensure that E.SUN would show the resilience to external economic shock.
Market Risk Management Mechanism
In 2022, E.SUN launched SOFR structured notes and developed to assess market risk exposure more precisely
with sophisticated simulation and analysis on risk factors. Despite the volatile ﬁnancial market, we strengthenedrisk management processes and mitigated the impact of ﬂuctuations in interest rates by measuring, monitoring,and hedging the DV01 of investments across time buckets regularly. As for counterparty risk, we reviewed andmonitored initial margins with other ﬁnancial institution counterparties on a daily basis since 2022/09 according
to Initial Margin Regulatory Requirements by ISDA.
All over the world, lots of central banks raised interest rates during 2022. The ALM system was adopted to
calculate the durations of assets and liabilities so as to analyze those effects on net interest margin (NIM). The
simulation results were then used for the reference of business development strategies and asset and liability risk
management.
Operational Risk Mechanism
In response to developments in digital technology, E.SUN has updated the underlying structure of its overall
operational risk management mechanism. In addition to adding new risk patterns for technology security,
corresponding control points have been added to address digital development and diversiﬁed identity
authentication. This provides business management units with key elements for depicting new business risk
proﬁles after digital transformation while also planning for system-assisted management tools that cross-examine
information.
Various risk aspects are grasped through the monthly overseas branch risk report. In addition, a series of risk
management e-learning courses are provided for overseas units to enhance the professional capabilities of
local supervisors and colleagues. It also assists Hong Kong and Singapore branches in implementing BusinessContinuity Management mechanisms to comply with local regulatory requirements.
To continue to improve the detection of business operation risk management, the "Guidelines for Risk Detection
in Business Operations" was formulated, clearly deﬁning the responsibilities of each unit and incorporating
the execution results into unit assessments. At the same time, the monitoring indicators of the entire bank arereviewed, and planning is made towards reducing and increasing efﬁciency to focus on the effectiveness ofmonitoring indicators and improve the effectiveness of detecting business operation risk monitoring.

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4.4 Emerging risks

In 2023, the World Economic Forum released the Global Risk Report.
The post-pandemic era has officially arrived, with countries lifting
restrictions one after another. However, E.SUN has found that the world
has not welcomed a stable life but has become more turbulent andinsecure. To mitigate the debt defaults and liquidity tensions caused bycontinuous interest rate hikes to curb inflation, as well as the geopoliticalrisks gradually escalating due to political and tariff barriers among
countries, the pressure on people's livelihoods has increased. On theother hand, the emergence of CHAT-GPT has thrown a small stone
into the development of the AI universe, and the ripples it has caused
are leading people to a world that is the hottest topic in the market.
Authorities from various countries have also put forward different
perspectives on this issue. In response, E.SUN has identified four key
emerging risks and developed mitigation measures and response
policies to advance on the path of sustainable development while also
contributing to the land we deeply love.

Evaluation process:
Gather information oninternal and external
emerging risk events

Identify the risk factors
and risk events

Assess the risk

Mitigate the risk

Regular review andfeedback． Collect financial and nonfinancial data andstudy relevant reports on risk.
． For example, The Global Risks Report, annual
risk prospect by international management
and consultation companies, or professional
analytic reports on specific risks.
． Identify incidents and risk factors that may
cause impact.

． Explore the possible scope of impact.
． List risk impact levels in order of magnitude.

． Incorporate environmental and social
issues related to operations into risk
assessments.
． Establish measures and policies tomitigate risks.
． Review performance and set thedirection for improvement.
． Regularly review whether the relevant
control measures effectively mitigate therisks and report the relevant results.

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Matrix of Emerging Risks
The Risk Management Division selects risks related to the banking industry and to E.SUN based on the WEF The Global Risks Report of 2023 and sends questionnaires to risk
management persons to conduct a survey on the possibility and level of impact. The questionnaire results are ranked to generate the emerging risk matrix diagram.
Economic

Environmental

GeopoliticalSocietalTechnologicalHigh
Geoeconomic confrontation
Misinformation & Disinformation

Widespread cybercrime& cyber insecurity

Interstate conflict
Adverse outcomes of frontier technologies
Cost-of-living crisis

Natural disasters &extreme weather events

Likelihood

Debt crisis
Ineffectiveness of
Asset bubble bursts
multilateral institutions
Natural resource crises& internal cooperation
Infectious diseases
Failure to stabilize
Failure of climatepricetrajectories
Failure of climate- change adaptionchange adaption & & mitigate
Proliferation of illicit
mitigate
Erosion of social economic activity
cohesion & societal
Prolonged economic downturn
polarization
Collapse of a systemically important industry or supply chain
State collapse or severe instability

Large-scale environmental damage incidents
State collapse or severe instability

Low

High

Impact102

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2023 Risk Factors

Description

Impact on Operations

Mitigatory Measures / Responsive Policy

The rapid interest rate hikes by global central
banks in 2022 have led to increased overall
operating capital costs and significant losses in
on-balance-sheet asset positions, resulting in
problems with funding repayment capabilities andsubsequent difficulties in continuing operations.

The climbing credit risk leads to an increase in overdueloans, a decrease in the proportion of debt recovery,
and a decline in the value of investment targets, making
it difficult for E.SUN to recover its debts smoothly, facing
product valuation losses, and further causing losses
in investment and financing positions, as well as adecrease in business volume and revenue.

(1) Strengthen control over investment positions andactively diversify and reduce the concentration riskof investment positions. Conduct mid-term reviews
to control the exposure of high-risk industries ininvestment positions and ensure the debt repayment
capabilities of invested companies.

Economic

Geopolitical

Debt Crises

Geoeconomic
interstate conflict& confrontation

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This may also trigger large-scale bankruptcies
in the market, leading to a domino effect of
economic panic and a rapid decline in economic
prosperity, causing difficulties in customer
business operations or declines in asset valuesof investment positions, and increasing potential
credit and default risks for customers.

(1) The Russo-Ukrainian war has caused turmoil
in energy and financial markets, with various
sanctions affecting global supply chains,
leading to soaring raw material prices andtriggering global inflation. At the same time,
countries are restricting technology usage orbanning capital flows, resulting in increased
logistics costs and potentially affecting
corporate production due to a lack of key
technologies or raw materials, or the inability
to receive or pay for goods due to sanctions,directly impacting customers' repayment
capabilities.
(2) Due to geopolitical factors and regional
proximity, Taiwan often faces various typesof new cyberattacks. Hackers target E.SUN's
information systems, causing abnormal
service interruptions, making it impossible forcustomers to use or leading to customer data
leaks.

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Additionally, a downturn in the housing market leads toa decline in the value of real estate collateral, and evenlower than the loan amount, resulting in excessively highloan-to-value ratios, unsecured debts, and a decreasein overall asset quality.

Seeking for Common Good

(2) Regularly pay close attention to the trends of credit
customers. When abnormal phenomena or bad
records occur in credit transactions, report theabnormal information and continuously track andcontrol it, implementing mid-term management
mechanisms.
(3) Have real estate experts regularly conduct in-depth
analysis and observation of the real estate market
dynamics. When significant market events occur,
immediately analyze the overall impact and assess
the influence, and adjust internal management
measures on a rolling basis, ensuring proper risk
control and early warning.

(1) To effectively curb inflation, various regions haveentered an interest rate hike cycle. The central
bank has raised interest rates four times, increasing
customers' repayment pressure and potentiallyraising default risks. People's confidence in the
housing market has become more conservative due
to ongoing concerns about cross-strait relations andexpectations for future interest rate hikes, leading toa cooling real estate market, declining transaction
volumes, and falling property prices, resulting ina decrease in the value of credit collateral andaffecting debt security.
(2) Cyberattacks on E.SUN's information systems candamage the confidentiality, integrity, and availabilityof the systems, affecting customer rights andpotentially causing negative perceptions of the
bank's system stability by regulators and customers,
or even leading to customer data leaks, affecting
the bank's reputation and impacting digital businessdevelopment.

103(1) Regularly collect information on global focus events,
conduct in-depth analysis and assessment of the
impact on financial markets (such as interest rate
markets) and the real estate market, in order topromptly identify and manage potential risks.
(2) Continuously monitor financial market and E.SUN's
credit business risk changes, strengthen KYC forcases with risk concerns, carefully assess caseunderwriting, implement midterm management, andenhance risk customer group management measures
to reduce credit risks derived from declining
repayment capabilities and respond to the constantly
changing market environment and risks.

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2023 Risk Factors

Societal

Cost-of-living
crisisJourney to Net Zero

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Technological

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Description

Impact on Operations

Mitigatory Measures / Responsive Policy

Due to high inflation and governments'
interest rate hike strategies, the cost ofliving has increased in various countries,
leading to a decline in people's real income
and a reduction in household consumption.
This affects the future growth of corporate
profits, increases overall credit market
risks, and reduces consumer purchasing
power. As a result, decreased demand
impacts the labor market, leading to a
reduction in household income.

(1) Continuous interest rate hikes increase themonthly repayment amount for loan customers,
leading to a higher potential risk of default anda decreased willingness for people to makelarge non-essential credit card expenditures,
affecting the transaction amount and handlingfee income.

(1) In credit business, the primary focus is on the borrower's credit
status and repayment sources. E.SUN will continue to implement
differentiated pricing for different customer groups, supplemented
by credit rating models to assess case risks and collateral value,ensuring the maintenance of good credit asset quality.

(1) Due to insufficient professional
knowledge and resources, emerging
technologies may be misused or
improperly applied, leading to errors
in automated service decision-making,data breaches, and damage tocustomer rights.

(1) Improper technology application may result ininappropriate information or services provided
to customers, leading to poor customer
experience. Additionally, inadequate identity
verification mechanisms and management inonline applications may increase fraudulent
transactions, affecting customers' willingness
to use digital services and ultimately impacting
E.SUN's digital business development.

(1) E.SUN has established a "Digital and Technology Strategy
Committee," led by the Chief Information Officer, to manage
various digital financial developments and fin-tech resource
utilization. The bank also implements a three-line defense systemthrough (new) product/service legal compliance, risk control,and information security management assessment processes,
ensuring proper management mechanisms for emerging
technology applications in both pre-review and post-monitoringstages.

(2) Improper model construction or usage, suchas in recent years' market fluctuations andfrequent macroeconomic volatility, may result
in decreased model accuracy, leading to realestate debt security issues.

(2) E.SUN has also obtained the "Information Security Management
System (ISMS) ISO/IEC 27001:2013" certification, with operations
following international standard requirements. The bank adopts a
multi-layered defense architecture, deploying various protective
measures across network, server, application, database, andendpoint layers. Centralized control of operating systems andvulnerability patching, regular vulnerability scanning, penetration
testing, and planning for various attack-defense drills are
conducted to assess the effectiveness of defense measures andincident response capabilities.

(2) Generative AI application scenarios
may be incompatible with existing
regulatory frameworks, resulting inincreased management costs andregulatory risks.

Adverseoutcomesof frontier
technologies

Building Resilience(3) Hackers can leverage AI technology
to enhance efficiency and attack
capabilities, quickly generating fakeinformation or phishing emails, andlowering the threshold for developing
malicious programs, potentially leading
to more attacks.

(2) Companies need to pay more labor costs
to obtain stable productivity, and increased
operating expenses may affect profitability.
If sufficient productivity cannot be achieved,
production may become impossible, leading toloan defaults.

(3) Artificial intelligence relies on big data for
analysis and learning; if training data contains
biases, such as gender, race, or geographicallocation, these biases may be perpetuatedin the model, leading to unfairness or
discrimination.

(2) E.SUN aims to provide a more convenient financial payment
experience in various scenarios, changing customer payment
habits and increasing the frequency of customers using credit
cards or mobile payments for small daily consumption.

(3) In response to emerging technology applications, working groups
have been established for projects such as Chat-GPT and cloud
applications to discuss internal regulations, restrictions, andrequirements, and to establish a consistent internal management
system. General version Chat-GPT usage is accompanied byinformation security education and training, promoting proper
usage and risk awareness of Chat-GPT, and enhancing staff's
understanding of emerging technology risks.
(4) Strengthening the supervision and transparency of artificial
intelligence, ensuring the diversity and fairness of its training data,and providing transparent explanation mechanisms combined withbusiness operations help businesses understand the decisionmaking process of AI, avoiding outcomes that contradict businessintuition and biases.

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4.5 Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT)
GRI: 2-23、2-24、2-2

AML/CFT is a shared direction and goal internationally. In order to cooperate with thecompetent authorities in improving the possibility of prosecution of money laundering, toestablish transparent cash ﬂow traces, to enhance relevant systems and to strengtheninternational collaboration, E.SUN continually implements the AML/CFT mechanisms,
including regularly reviewing AML/CFT policies and procedures of domestic and overseas
afﬁliates, reﬁning customer due diligence (CDD) and control measures, optimizing AML
monitoring and watch list ﬁltering systems, and providing comprehensive training tostrengthen the quality of domestic and overseas AML personnel.

reﬁnes due diligence customer review and control measures, and constantly develops
global AML monitoring systems, all for the beneﬁt of better AML/CFT in the overall ﬁnancial
environment. In terms of international regulatory trends, guidelines issued by organizations
such as the Financial Action Task Force on Money Laundering (FATF) are closely followed,
as well as international trends in money laundering, emerging technologies and frauds,
covering environmental crime, medical crime, terrorism ﬁnancing, arms proliferation, tradebased money laundering, digitalization, and virtual currency, etc. E.SUN FHC complies withthe regulations of competent authorities, and strengthens various AML/CFT mechanismsof its subsidiaries in line with FATF's "Forty Recommendations". The implemented AML/
CFT management mechanisms can be divided into six dimensions, including policies andprocedures, customer due diligence, watch list ﬁltering, suspicious transaction reporting,technology application, and annual independent assessment, with speciﬁc actions andachievements illustrated as follows: AML/CFT Organizational Structure and Managing System
To integrate and promote the establishment and operation of overall risk management
mechanism, E.SUN has set up its risk management department, which is responsible
for formulating risk management policies and procedures, supervising theimplementation of each subsidiary, and regularly reporting to the board of directors,
audit committee, and risk management committee.
The AML/CFT management mechanism and structure of E.SUN's subsidiaries are as
follows:(1) A dedicated supervisor is appointed to be responsible for promoting,coordinating, and supervising the implementation of various AML/CFT mattersand report regularly to senior management.
(2) The dedicated unit and personnel are responsible for formulating AML/CFT
policies as well as operation standards. They are also responsible for the
management of overall transaction monitoring, suspicious transaction reporting,sanctions compliance, group-wide training sessions, as well as managing AMLrelated matters in overseas branches. The current status and performanceare reported to the dedicated supervisor and parent company on regular andirregular basis.
(3) AML/CFT supervisory ofﬁcers are appointed in risk management or compliancedepartments under each domestic business units as well as overseas branches.
They are responsible for supervising the implementation of AML/CFT-related
matters in their subordinate units.
(4) The audit department formulates audit items in accordance with relevant internal
control regulations and conducts regular audits.

Policies
andProcedures
AnnualIndependent
Assessment

Customer
Due
Diligence

AML / CFT
Mechanisms
Technology
Application

Watch List
Filtering
Suspicious
Transaction
Reporting

Policies and Procedures

 AML/CFT Management Program and Enhancement

E.SUN FHC and its subsidiaries have established AML/CFT policies and procedures withregard to aspects such as due diligence, name screenings (watch list ﬁltering), transaction
monitoring, employee management, and record keeping. In 2022, E.SUN conducted
regular review on relevant policies and procedures. The company has formulated

E.SUN continually realizes internal and external regulations and treats AML/
CFT compliance tasks as its long-term mission; continues to promote matters forstrengthening AML/CFT; benchmarks with international AML laws and regulations;review regularly on AML policies and procedures of domestic and overseas afﬁliates;

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Building Resilience"Guidelines on Group-wide Information Sharing" to set up procedures of group-wide
customer due diligence information sharing, and include the overall implementation as a partof the annual performance report to the board of directors. Additionally, based on the "Risk
Appetite Declaration for Money Laundering and Financing of Terrorism", the risk appetite
standards of institutional risk assessment are precisely deﬁned.
In 2022, subsidiary E.SUN Bank amended the "Anti-Money Laundering and Combating
the Financing of Terrorism Policy", adjusting the customer acceptance principles forvirtual currency companies; the "Anti-Money Laundering and Combating the Financing ofTerrorism Precautions" was revised in line with the changes in external regulations, suchas the integration of electronic payment and electronic ticket business, and the inclusion of
combating proliferation ﬁnancing in insurance agent business. The "Procedure for Selection,
Update and Validation of the Black List Database" was also amended with adjusted
procedure of external name list updating, and addition of veriﬁcation record keeping forname lists shared group-widely.
In line with the changes in futures commissions merchant AML/CFT typologies by regulatory
authorities, subsidiary E.SUN Securities amended relevant policies and procedures forconcurrent futures commission merchants in 2022, including "Anti-Money Launderingand Combating the Financing of Terrorism Precautions", "Anti-Money Laundering Risk
Assessment Plan", and "Typologies of Suspicious Money Laundering, Terrorism Financing,and Proliferation Financing Transactions". Additionally, under the guidance of the risk
appetite of E.SUN FHC, E.SUN Securities revised its "Anti-Money Laundering and Combating
the Financing of Terrorism Policy", clarifying its standards of risk appetite of institutional risk
assessment and periodic review on their appropriateness.
Customer Due Diligence
E.SUN's due diligence procedures are as follows:
Customer

Identify
verificationNamescreeningDuediligence

Risk
ratingLow risk
Mid risk

EnhancedduediligenceHigh risk

Approved by senior
management

Y
Ongoing due diligenceand monitoring

Establish
businessrelationship

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E.SUN continuously develops its IT systems, optimizes operational processes, andintegrates customer information to improve CDD/EDD operations. In the third quarterof 2022, subsidiary E.SUN Bank launched its self-developed CDD/EDD system,"Customer Due Diligence Platform (CAML)". CAML provides one-stop service forvarious CDD scenarios, covering onboarding stage, ongoing stage and trigger events,
with a view to increase the mastery of customers' identiﬁcation. The platform allows
employees to access up-to-date customer information as well as retained documents,
and automatically integrates external public equity structure information to assist in
identiﬁcation of ultimate beneﬁcial owners. In the fourth quarter of 2022, subsidiary
E.SUN Securities also launched its self-developed "Account Review Platform" tocomplete account review operations and access up-to-date customer information andretained documents.
Senior Management Approval and Sign Off
When assessing customer risk, various factors such as background, industry,socioeconomic activity characteristics, region, organization type, and structure of nonnatural person customers must be considered. This includes whether the customers
are from high-risk money laundering and terrorism ﬁnancing countries or industries
prone to money laundering and terrorism ﬁnancing. For customers identiﬁed as highrisk or possessing speciﬁc high-risk factors, enhanced due diligence will be executed,
including veriﬁcation on the source of funds and wealth. The aforementioned customertransactions can only be undertaken with the approval of senior management.
Moreover, transactions involving extremely high-risk jurisdictions such as Iran and
DPRK are prohibited, nor are onboarding customers whose business involves virtual
currencies acceptable.
Non-Face-to-Face Due DiligenceFor due diligence measures of customers from "non-face-to-face" channels, E.SUN has
both applied conﬁrmation procedures equivalent to those for face-to-face customers,
and adopted adequate measures to mitigate risk. E.SUN Bank and E.SUN Securities
provide speciﬁc, clear instructions for applying for digital bank accounts and online
securities accounts on their ofﬁcial websites, including the required documents,
application qualiﬁcations, approval progress, and supplementary document inquiries.
Furthermore, both subsidiaries continually encourage customers to use online banking,mobile banking, or the "Personal Basic Information Update Platform (eKYC)" for online
data updates to assist customers in completing account reviews.
Watch List Filtering
E.SUN improves its watch list ﬁltering operations through the continuous developmentof IT systems. In the fourth quarter of 2022, E.SUN Bank launched its self-developed"Name Screening System (SAML)". SAML enhances the update frequency of importantsanction lists by directly connecting to relevant ofﬁcial websites, prevents duplicate

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Seeking for Common Goodenhanced due diligence and strengthened transaction monitoring will be conducted.
Veriﬁcation on source of funds and wealth along with senior management approval are also
required before proceeding. Moreover, high-risk PEP/RCA customers must undergo annual
reviews, and related transactions will be subject to enhanced monitoring.

case reviews, and increases matching accuracy with scanning engines utilizing big data
and language analysis. E.SUN Securities strengthens its efﬁciency and effectiveness ofwatch list ﬁltering operations by utilizing the AML/CFT query system established by the
Taiwan Depository & Clearing Corporation with the aid of Dow Jones Risk & Compliancedatabase.

Suspicious Transaction Reporting
In terms of suspicious transaction monitoring, E.SUN refers to typologies published byregulatory authorities, and conducts transaction monitoring for all transactions throughsystem assistance and manual processes, covering customers, employees, and ﬁnancial
institutions involved with E.SUN. Alerts generated by the system are investigated bydedicated personnel to verify the reasonableness of customer occupation/industry, source offunds, purposes of transactions, and whether transaction activities are consistent with pastpatterns, while also retaining investigation records. Suspicious transactions discovered bybranch staffs and relevant information are reported to dedicated units via internal reporting
mechanism, and further investigations will be conducted by dedicated personnel.

Combating the Financing of Terrorism and Countering Proliferation Financing
For establishing business relationship or providing new services, E.SUN conducts real-time
checks on customer names and those of their associates, as well as daily batch scanningand name list updates. When conducting speciﬁc transactions, the related parties, suchas remitters and beneﬁciaries, are also checked. The lists adopted by E.SUN include, but
are not limited to, the Taiwan Ministry of Justice (MOJ) Sanctions List, the United Nations
Security Council (UNSC) Comprehensive Sanctions List, the U.S. Department of theTreasury's Ofﬁce of Foreign Assets Control (OFAC) Specially Designated Nationals List
(SDN-List), and lists published by the local regulatory authorities of overseas branches.

If deemed suspicious, the transactions will be reported to the Financial Intelligence Center(FIU). The entire reporting processes are conducted through a dedicated computer withall portable devices blocked. All personnel in dedicated units are obliged to conﬁdentiality
agreements with a view to ensure reporting information cannot be leaked to unrelated third
parties. In 2022, various system optimization and improvement projects had been completed
to strengthen the monitoring mechanisms, including enhancing integrity in data display,monitoring logic and parameter thresholds, adding and adjusting management reports, etc.

PEP / RCA
To verify whether customers and the corresponding ultimate beneﬁcial owner belong to
PEP/RCA, identiﬁcations are conducted via IT systems with name list databases during
speciﬁc events, including the establishment of business relationships, the addition of
new relationships, regular reviews, and trigger event reviews. If conﬁrmed as PEP/RCA,
Annual Independent Assessment
Item

Description
Internal Control
System Statement andIndependent Assurance
ReportEach subsidiary issues a statement on the internal control system for AML/CFT, jointly signed by the chairman, general manager, chief auditor, and the dedicated
AML/CTF supervisor. The statement is filed on the website of supervisory authorities and on the company's official website. In 2022, subsidiary E.SUN Bank continues
to commission PricewaterhouseCoopers (PwC) to conduct auditing of the AML/CFT internal control system, and the assurance report is issued with opinion of fairpresentation in material aspects.

Institutional Risk
Assessment(IRA)

In 2022, E.SUN continues to improve its risk assessment methodology by strengthening the analysis of quantitative data and control effectiveness. In line withsupervisory requirements and business development, E.SUN incorporates risk factors such as high net-worth clients, payment platform operators, and refines
assessments on control effectiveness. The methodology enables a holistic understanding to the money laundering and terrorist financing risk faced by E.SUN.
The results are reported to the board of directors and filed with the supervisory authorities. Additionally, the "Risk Appetite Declaration for Money Laundering and
Financing of Terrorism" clarifies the acceptable minimum control measures and maximum residual risk levels for the institution's AML/CTF risk assessment, further
enhancing the overall risk assessment framework.

Transaction Monitoring

To ensure the appropriateness of the transaction monitoring system, the dedicated unit assesses the consistency, accuracy, and rationality of transaction monitoringdata under the guidance of external consultant's methodology. Through analyzing the statistical distribution of customer transaction data, the reasonableness ofthreshold settings is examined to evaluate whether the transaction detection logic is effective and meets the needs of E.SUN.

Watch List Filtering

E.SUN continues to engage with independent third-party, the Society for Worldwide Interbank Financial Telecommunication (SWIFT), to verify the effectiveness of its
watch list filtering system. The major testing aspects include previse matching and fuzzy matching, with a view to evaluate the system performance in customer andtransaction scanning, ensuring that the requirements on system effectiveness are met.

Overall
Assessment

Variouscontrolmechanism
effectivenessverification

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Technology Application
In order to enhance operational efﬁciency and reduce the risk of manual error, E.SUN has
self-developed Robotic Process Automation (RPA) programs to handle highly repetitive,
routine tasks through automation or semi-automation. Machine learning models andplatforms are also applied in practical scenarios, including adverse media collection,
watch list ﬁltering, and abnormal transaction detection, combined with business logic or
manual operations to improve case review efﬁciency. Moreover, E.SUN has exploited thetechnology of Artiﬁcial Intelligence (AI) by integrating self-built model into the transaction
monitoring system. Launched at the end of 2022, the AI model enables risk-scoring on
alerts by analyzing risk factors, further assisting dedicated personnel in focusing on
investigation of alerts with higher predicted risk.

E.SUN continuously promotes obtaining domestic and international AML certiﬁcations,encouraging employees to enhance their professionalism and international perspectives.
In 2022, the Certiﬁed Transaction Monitoring Analyst (CTMA) was added as a special
certiﬁcation eligible for incentive subsidies. As of the end of 2022, 99% of AML/CFT
supervisory ofﬁcers at subsidiary E.SUN Bank are AML/CFT certiﬁcation holders.

Seeking for Common Good

Group-wide AML/CFT Training
2022
Educational training methods

Record Keeping
E.SUN maintains records and ﬁles related to the implementation of AML/CFT, as well as
records and vouchers of customer transactions, for at least ﬁve years after the end ofcustomer business relationships or temporary transactions. This is done to facilitate future
inspections and inquiries, and to provide evidence of efforts in AML/CFT.
Reinforcement through Training
To enhance the professional depth and breadth of employees as well as cultivate AML/
CFT awareness and culture, E.SUN provides annual education and training sessions
for all employees (including new recruits), dedicated units, supervisory ofﬁcers, andfrontline staffs, based on their business nature. During 2022, E.SUN held a series of videoconference training with topics on practical business operations and current events,
such as typologies of abnormal transactions, the Russia-Ukraine conﬂict and internationalsanctions, as well as cryptocurrency. Experienced industry executives and external
consultants are also invited to provide training courses to help employees understand their
responsibilities and continuously improve their professionalism. E.SUN has also joined
ACAMS as a corporate member, utilizing its online courses and global AML/CFT news
database to enrich both domestic and international training materials. At the same time, thehead ofﬁce shares its experience on transaction investigations with overseas branches bybusiness attributes, and provides directions for investigation during video conferences.

Our People

Number ofparticipants

Total course
hours (hours)

Annual Online Training and Exam

8,385

16,770Group-wide Compliance Training(AML/CFT relevant topics)

8,145

4,072

2020

2021

2022

Domestic AML/CFT Certification

548

1,201

1,631

Certified Anti-Money Laundering
Specialist (CAMS)

336

337

337

Certified Global Sanctions Specialist(CGSS)-

5

11

Certified Transaction Monitoring Analyst(CTMA)--

3

Group-wide AML/CFT Certiﬁcation in 2020-2022
Certiﬁcation Name

Disclosure of AML/CFT Related Information
E.SUN FHC discloses its AML/CFT policies, risk appetite, and AML questionnaires(Wolfsberg CBDDQ Questionnaire) on its ofﬁcial website, while subsidiary E.SUN Bankand E.SUN Securities also disclose internal control statements for AML/CFT on theirofﬁcial websites to enhance transparency.

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4.6 Business Continuity Plan GRI: 2-23, 2-24, 2-25, 3-3

4.6.1 IT continuity plan

E.SUN has established Business Continuity Plan to provide customers with secure anduninterrupted services. By conducting periodical business impact analysis and drills ,weassure adequate responses to disasters and ensure the minimization of business impact.
Also, when the IT services encounter sudden disasters, we will recovery key services assoon as possible to reduce the business impact and protect customer rights.

 Routine Drills
Information system disaster recovery andrecovery drill

Distributed Denial-of-Service Protection
Program Walkthrough

Drill purpose

Ensure that disaster backup systems arefunctioning normally, and that systems,
personnel, and processes can activate
the backup procedures within the set
amount of time, achieving Minimum
Business Continuity Objective(MBCO).

Emulating a DDoS network attack
to ensure our network protection
mechanism, response, and reporting
procedure can actually mitigate losses
and restore our equipment and services
as soon as possible.

Implementation
modalities

The recovery drill is conducted bytabletop exercise, formal system
recovery and simulation exercise.
Among these methods, formal system
recovery is carried out throughcentralized scripts management anduniﬁed dispatch systems to verify
the remote backup systems can belaunched automatically.

E.SUN Bank has delegated aprofessional third-party information
security consultant to carry out thepenetration test, simulating a hacker
launching a DDoS attack on E.SUN.
The test sought to check how effective
our defense and response systems
to function normally in the event of an
attack.

Drills frequency

Once a year

Once a year

Drills result· E.SUN Bank has completed
exercise drills of 94 businesssystems, which include 23 businesssystems at our foreign branches,and 71 business systems in Taiwan.
We have managed to meet our
RTO(Recovery Time Objective) in allof these drills.
· E.SUN Securities has completed
exercise drills for 18 businesssystems, and has met
RTO(Recovery Time Objective) inall of these drills.

Building Resilience

Our People

Seeking for Common Good IT System Disruptions

In 2022, the availability rate of E.SUN core systems were 100% . While our foreign exchangesystem experienced 1 abnormal incident, the incident did not cause a service disruption.
System repair procedures were carried out immediately to address the issue, and corrective
and preventive measures were proposed. In order to provide our customers with smooth andconvenient access to our services, the goal of E.SUN is to provide 24/7 uninterrupted online
services, and we shall continue maintaining the high availability rates of our services.
1

The core business systems incidents in 2022

NTD: 0The ﬁnancial loss caused by such incidents in 2022

Note: The availability rate of our systems is calculated by (annual system service time - system interruptiontime) /annual system service time Business Continuity Certiﬁcation

In order to realize E.SUN’s third core philosophy, which is to implement sustainable
management strategies, we aim to establish ﬁnancial information resilience. Apart fromconducting regular information system disaster backup and recovery exercises, we haveadopted the ISO22301 Business Continuity Management System (BCMS) international
standard in 2022. Our goals are for E.SUN to be able to quickly respond to disasters
such as an unexpected incident or a major information system failure, ensuring that key
business operations can continue operating at minimum service levels, and optimize ourallocation of resources in establishing response and recovery capabilities. Through thePlan-Do-Check-Act (PDCA) cycle with risk management as the basis, we have combined
our business operations and system resources to improve ﬁnancial services resilience,
ensuring that our customers are able to access and use our information services in the
secure environment.

 Customer Service Quality

To continue providing the customers with the best service, all business units havecategorized the scenarios that can cause business interruptions and have formulated
relevant plans and handling measures to respond to the possible impact on service.

Incident reporting and emergency
response could be completed within
30 minutes at each stage of the attack,showing that the E.SUN's defense
systems are effective.

109

Category

Business Continuity Plan

Human resourcesmanagement

In order to prevent service quality problems caused by lack of human resources inbranches, interbank resource adjustments can be made to maintain branch service
standard and to provide customers with the best service experience

Branch safety
protection drill

Regarding common special circumstances that may affect branch operations,such as natural disasters (earthquakes, typhoons, power outages and ﬁres),illegal behaviors (such as robberies, frauds, threats and suspicious ﬁgures) massdemonstrations and other factors of force majeure, prevention measures and drills
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4.6.2 Control of Major Communicable Diseases

While E.SUN has established an occupational safety and health management system, the
Human Resources Division's Labor Safety Section is charged with the duty of addressing
major communicable diseases. It is responsible for getting hold of the most up-to-date
epidemic information and countermeasures warranted. For their part, E.SUN outlets are

Anti-Epidemic Mechanism and Countermeasures in Case of Conﬁrmed Infection
Measures

TypeAll employees are encouraged to get vaccinated to increase immunity
against the coronavirus. Provide 1~3 doses before vaccination to apply
for vaccination leave (full pay) to protect the health of colleagues, family
members and customers as well as employees themselves.

Paid leave for
vaccination

Provision of
COVID-19
rapid test kits

Epidemic insurance

Type of Leave

Seeking for Common Goodto report back their latest status while securing notiﬁcation of the countermeasures being
implemented at the moment. Priority is given to ensuring the transparency and timelinessof anti-epidemic information across the board.

Anti-Epidemic Measures and Subsidies
Anti-Epidemic Subsidies
Type

Our People

BackupMechanism

Such arrangements as work-from-home, off-site work, and regional backup
teams shall be initiated when and if the pandemic warrants it, thereby
keeping up business operations should any given business location beforced to shut down temporarily.

Simulation Drill

To be well prepare, an on-site drill was conducted to simulate branches
supporting one another for backup personnel in accordance with previously
announced operating procedures while taking into account the actual status
in terms of employees taking leave.

Confirmed
Infections of
Employees

Upon confirmation of infection, the employee in question shall seek medical
attention and report the diagnostic outcome promptly. After being notified
by the competent authority of confirmed infection or compulsory isolation,
notice shall be given to the departmental head and the head office's antiepidemic task force in a timely manner. The branch backup mechanism
shall be initiated after the affected business venue undergoes cleaning andsanitization. With priority given to preventing a further outbreak and keeping
employees and customers healthy, these measures are to be taken to upholdbusiness continuity and risk management at the same time.

Number of Leave Takers Number of Days Taken

Family care leave

337

1192.30

Quarantine leave

6286

38175.60

Health management leave

195

396.90

Vaccination leave

8170

15739.30

Provide home-based COVID-19 rapid detection kits to all employees. If
employees have symptoms related to COVID-19, the unit will provide rapid
screening reagents for rapid screening. If they are positive, they will returnhome or seek medical treatment immediately, and report the epidemic tothe supervisor of the unit.

In 2022, in addition to group insurance, employees will also be provided
with epidemic insurance. Employees who are hospitalized due to statutory
infectious diseases or treated in ICU isolation or negative pressure isolation
are entitled to a daily compensation of NT$1,000-1,500 in addition to theexisting group insurance. This epidemic insurance package is fully paid by
the company, covering not only employees, but also employees' spouses
and children.

110

Anti-Epidemic Measures

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4.7 Information Security and Personal Information Protection Management

SASB：FN-CF-220a.1、FN-CF-220a.1、FN-CB-230a.1、FN-CF-230a.1、FN-CB-230a.2、FN-CF-230a.2

E.SUN continues to improve and strengthen our governance system for information
security measures and information security protection. The Information Security
Management Division, an independent, dedicated information security unit, oversees theentire information security operations of E.SUN FHC.

Board of Directors

All of our information operations not only comply with domestic and foreign regulations for
information security, but are continuously benchmarked against international cybersecurity
standards and practices. In order to improve the protection and management of thepersonal information of our customers, E.SUN has established a Personal Information
Protection Task Force. The Task Force is responsible for establishing rules on protecting
personal information, including measures for managing how personal information iscollected, processed, and used, with the goal of protecting the personal information of ourcustomers.

 Information Security Governance goal, strategy and practice

The Board of Directors is responsible for reviewing overall information security policiesof E.SUN FHC, the overall implementation of information security, and the results ofthird-party computer system information security assessment. The Board of Directors
set the Risk Management Committee as a highest oversight committee, as well as
strategy, important decision-making, and overall execution in terms of information
security. E.SUN's Board of Directors is comprised of members with information
backgrounds. Besides, The Board of Directors and the senior management shall fulﬁll
their duties of supervision and governance.
The company has appointed a chief information security ofﬁcer (CISO) tocomprehensively supervise the implementation of information security operations andcheck the effectiveness of information security management mechanism, and reportto the board of directors on the overall effectiveness of the relevant managementof the information security management agency. The CISO is the highest level ofInformation Security Ofﬁcer. Every year, the Chairman, President, Chief Audit Ofﬁcer
and Chief Information Security Ofﬁcer jointly issue a Declaration of Overall Information
Security Implementation.
To strengthen information security governance, E.SUN FHC Information Security
Management Committee (ISMC) was set up in 2017. In 2019, the information security
management system of information security unit was established to promote andimplement information security operations. The ISMC is in charge of reviewing E.SUN
FHC Information Security Policy, which is applied to all subsidiaries under E.SUN
FHC. In addition to reviewing governance policy, the Committee also supervises

111

President

Information Security Management Committee/ CISO
Committee duties:．Information Safety governance and policy- Information security risk monitoring and management．Information security maintenance and execution- Information security validity confirmation

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the execution of information security management and regularly reports to the Board of
Directors on the information security governance status, including policy amendments, risk
disclosure and handling.

 Information Security Management System

E.SUN Bank has already obtained the ISO/IEC 27001:2013 international certiﬁcation for the
Information Security Management System (ISMS), and completed two follow-up reviews in
2022 to maintain the validity of the certiﬁcation. E.SUN has also expanded the applicationof the certiﬁcate to its Intelligent Banking Division and E.SUN Securities in 2022. Moreover,its credit card receipt system has also achieved the Payment Card Industry Data Security
Standard (PCIDSS) certiﬁcation on an annual basis since 2017 to maintain the validity of
the certiﬁcation.

Our People

Seeking for Common Goodand international regulatory agencies while maintaining business continuity and safety
management.

 Information Security: Monitoring, Joint Defense, Intelligence
Analysis Information security protection and examination analysis

In response to the constant changing hacking techniques (e.g., distributed denial ofservice [DDoS], advanced persistent threat [APT], and social engineering attacks),
E.SUN has deployed multi-layered defense mechanisms such as ﬁrewall, anti-virus,
hacking detection and browsing behavior management, etc., and commissioned external
information security experts to collaborate in penetration tests and attack/defense drills
with different scenarios and to examine the effectiveness of the Company's defense andthe Company's ability to respond to cybersecurity events.

In support of the Financial Supervisory Commission's push for exchanging ﬁnancial
intelligence, E.SUN established a security operations center (SOC) in 2021 to monitor,
detect, analyze, and defend against cyber threats. E.SUN has been cultivating theincident response and investigation competencies of Security Operation Center(SOC) professionals tanning, information security defense equipment connecting, andautomated threat intelligence feeds. This helps E.SUN to continuously optimize the SOC
and comprehensively enhance the timeliness in handling information security incidents aswell as the skills in managing information security threats, thereby achieving its target forjoint information security surveillance and defense in the ﬁnancial sector.
Information security has become a crucial component of risk management because of
the rapid development of FinTech. In order to have a more holistic view of the current
cybersecurity status and trend in the ﬁnancial industry, E.SUN FHC and its subsidiaries

Security scan are incorporated in our system development lifecycle; computer system
information security evaluation is also conducted as required computer system information
security evaluation as required by regulations to inspect the compliance, information
structure, internet activity, network / server / end point conﬁguration, application security,
etc. Various security tests are combined to detect and mend information security threats
and vulnerability to reduce the risk of external service exposure and to ensure the IT
system stability and the effectiveness of information security controls.
In 2021, E.SUN hired professional white hat hackers to carry out a comprehensive
penetration test exercise. In 2022, the scope of this penetration test was expanded toinclude the remote working scenarios. The exercise designed not interfere our regular
operations, to ensure that remote working network connections were secure, andcomprehensively veriﬁed the effectiveness of our information security, detection, andreview procedures above. Through a real hacking attack, the penetration test attempted to
expose any potential risks or vulnerabilities in our critical systems. Suggestions on how ouroverall information security protection can be improved were raised based on the resultsof the exercise drill, ensuring that we are compliant with the requirements of domestic

112

Event Response． Emergency response andcontainment． Rapid massive scanning． Bolstered feedback frommonitoring

Event
Response

Event Notification． Setting of notificationmeans by risk grade． Automatic notification ofrisk events; tracking andupgrade． Consolidation of
approval requirementscommensurate withhierarchical levels

Proactive
Monitoring

SOC

Event Notiﬁcation

Proactive Monitoring． Information management
for information security． Consolidation and analysis
of information security
events． 7/24 monitoring of
information security

Collaborative
Cyber
DefenseCollaborative Cyber Defense． Intelligence analysis and joint
defense． Intelligence sharing withregulators and others． Information security reporting
and risk grade evaluation

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have been cooperating with Financial Information Sharing and Analysis Center (F-ISAC)
and have been taking a role in the F-SOC cross-organizational defense plan to enhance theimplementation of cyber incident scenario monitoring and cyber incident information sharing
mechanisms, making it possible for the organization to detect cyber threats quickly and toeffectively strengthen the company’s ability to defend unknown information security risks.
In dealing with major threats including domestic and foreign major information security
incidents, network system vulnerabilities, ransomware attacks, and malware, the Company has
formulated standard operating procedures for intelligence collection and handling, and risk
analysis was completed for a total of 323 relevant data in 2022. Preventive response measures
were proposed for issues with higher intelligence or key concerns, and 19 information security
alerts were disseminated to the IT Departments of all E.SUN FHC subsidiaries in order toreduce the likelihood of impact on the overall information assets in E.SUN FHC, while also
ensuring the consistency of information security defense across subsidiaries.

235,126

simulated social engineering email
delivered99%

Building Resilience

Our People

Seeking for Common Good Information Security Incident

For the reporting and handling of information security incidents, the Company stipulates
the reporting and handling procedures of information security. The information on security
incidents of the entire company is recorded by the notiﬁcation contact of the information
technology unit and ranked by event severity. In major incidents of information security, theInformation Security Management Division and the "notiﬁcation contact for major incidentsof the FHC/headquarters" must be notiﬁed. The Information Security Management Division
shall deal with and solve an information security incident within the target handling time.
After the incident, the root cause must be analyzed, and corrective measures must be
adopted to prevent any recurrence of incidents
In the past three years, the Company and our customers have not suffered any losses frominformation security incidents. In 2022, we received 102 fraudulent emails from externalsources. After investigation, it is conﬁrmed that there are no information security risks suchas hacker intrusion and virus infection. The monitoring alerts and related control measures
were effective in defense.
A- Information Security Incident

Employees showing alertness of social
engineering email coming their way

 Information Security Training

E.SUN holds information security training each quarter, as well as an information security
seminar every six months. In 2022, the Company recorded 100% participation and passrates for its information security test. Internal and external specialized courses organized fortechnology professionals totaled 7,549 hours, with internal and external training accounting for
88% and 12% respectively.

2020

2021

2022

Total number of information security incidents

0

0

0

Total number of information security incidents causing
customer data loss

0

0

0

Total number of customers affected by information security
incidents

00

0

Financial losses due to information security incidents

0

0

0

Note: The above statistics refer to computer hacking or computer virus attack incidents.

In order to maintain E.SUN’s sensitivity and ability to respond to incidents, we held 6
information security incident response drills in 2022. These drills covered scenarios suchas personal information leaks, ransomware, and DDoS attacks, and sought to improve our
employees’ capacity for coordinating with one another, as well as determine the effectivenessof our response procedures. By doing so, we are able to curtail the risks and losses derived
from cyberattacks.

B- Data breaches
Total number of data breaches
The percentage of breaches involving personallyidentifiable information
Total number of account holders affected by data breaches
identifiable informationinvolving personally Resources for Information Security

Committed to allocating resources for information security, E.SUN recorded a 2.59% increasein such spending in 2022. Resources were funneled mainly toward enhancing governanceand technology infrastructure, strengthening defense equipment, monitoring and analyzing
intelligence, and conducting emergency response and offensive/defensive drills and training to
upgrade information security capabilities and guard such security across the board.

2020

2021
0

0

0

0%

0%

0%

0

0

0

Note: The above statistics refer to computer hacking or computer virus attack incidents.

113

2022

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Building Resilience Personal information protection management objectives andstrategies

Honesty and integrity are the basic ethics for the ﬁnancial employees. Personal information
protection is the commitment E.SUN gives to our customers. In order to protect thepersonal information of customers, E.SUN established the Personal Information Protection
Task Force, which is responsible for building personal information protection regulations,which include management measures for the collection, handling and use of personal
information. The Company followed "E.SUN Financial Holding Co. Ltd. and Subsidiaries
Personal Information Management Organization Foundation Principles" to examine andadjust the personal information inventory. The organizational structure is shown in thechart below.
President of E.SUN FHC

Chief manager of FHC in chargeof personal information protection

We are devoted to honoring our promise to keep customer information conﬁdential,
E.SUN announced "Privacy Policy and Disclaimer," "E.SUN Financial Holding Co., Ltd. andSubsidiaries Personal Information Management Policy" on the ofﬁcial website The regulations
ensure the safety of our customers' personal information and the legitimacy of gathering,using the information, yet continue to optimize internal regulations and procedures. E.SUN
ensures the implementation of personal information protection through the reﬁnement ofregulations, self-assessment on compliance, self-audit and regular training for the employees.

 Personal Data Protection Event

E.SUN and subsidiaries use customers' data with the utmost care. In 2022, E.SUN collected
25 customer petitions concerning personal information leakage or misuse; 20 of them fromthe Financial Supervisory Commission (FSC) and the other 5 from the customers' feedback.
After investigation, all cases are not concerned with any breach of laws, and E.SUN have notbeen ﬁned by the FSC in the year. E.SUN always responds to customer petitions seriously
and proactively. In 2022, as reported by the independent audit division, E.SUN do not haveany deﬁciencies in personal information protection. E.SUN would keep the safety of personal
information as top priority.

Personal Information
Protection Executor． Representatives from eachproduct line
． IT personnel． Representatives for compliance． Executive Secretary

Seeking for Common Good

information protection policies and satisfying regulatory requirements. PIMS is a privacy
expansion to the ISO 27001 Information Security Management System(ISMS). By satisfying
these additional requirements, we could continuously improve our privacy management. We
have incorporated information security and privacy protection management standards andrequirements to reduce our privacy and information risks. Additionally, as of 2022 E.SUN has
passed certiﬁcation for the BS10012:2017 - international personal information standard for 5
consecutive years.

Unit in charge of audit of
personal information protection
Audit Division

Bank / Securities /Venture Capital

Personal Information
Protection Task ForceOur People

To strengthen the protection of personal
information, the Personal Information
Protection Task Force evaluates theexecution of personal information protection
every year based on the results of "selfassessment on Compliance" and "selfassessment on Operational Risk", and it
executes improvement and prevention plan
for any violations against the laws.

Statistics of the Number of Petition Related to E.SUN Services and Personal Information
Competent

Collected by

Deposits and transfers

2

3

5

Personal credit service

3

1

4

Wealth management services

0

0

0

Credit cards services

12

0

12

Corporate credit services

0

0

0

Other

3

1

4

Total

20

5

25

Cases of Personal Information

Subsidiary
Personal Information
management unit Personal Information Protection Management

In order to continue implementing E.SUN’s sustainable management strategy and ourprinciples of treating customers fairly, we adopted the internal standard of ISO 27701
Privacy Information Management System (PIMS) in 2022, with the main goal of helping ourorganization effectively process personal identiﬁable information, expanding our personal

114

Authority

Total

E.SUN

Statistics on the number of audit deﬁciencies in the use of personal information in recent years
Year
Use of personal information audited deficiency

2020

2021

2022

0

0

0

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Building Resilience Customer's data for secondary purposes

I. E.SUN monitors 100% of the usage of customers' data and evaluates whether processing
for another purpose is compatible with the original purpose prior to the secondary usage.
The evaluation principles are as follows:(I) Relevance between the original and new purposes.
(II) The customer's identities and background.
(III) The secondary usage of sensitive personal information is forbidden.
(IV) The possible consequences of the intended further processing.
(V) If any protection is applied, including encryption or encoding.
II.The control mechanisms and results of customer's personal information being used forsecondary purposes are as follows:(I) Processing: All data used are through remote desktop, and the whole process isrecorded for tracking.
(II) Output: A list review through the "Global Communication Framework" would be
conducted to exclude improper customers, such as blacklists, joint-marketing
rejected customers.

2021

2022

Number of customers' personal information
being used for secondary purposes

5.69

5.78

Percentage of all customers

73.9%

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4.8 Tax Governance

GRI: 2-23、2-24、2-25、207-1、207-2、207-3、207-4

 Approach to tax
E.SUN is committed to not using tax haven and low-tax jurisdiction for tax avoidance. We
refuse to transfer value through special structure and arrangement which is not in accord
with arm’s length principle. We set tax governance and transfer pricing policy and regard
the policies as the internal standard of tax matters.

Unit: Million、%

Cases related to personal information

Our People

Principles of E.SUN Tax Governance and Transfer Pricing Policies
Tax Compliance Complying with the letter and the spirit of tax laws and regulations tofile tax returns and prepare related documents.
Comprehensive Decision Evaluating the impacts comprehensively and making tax
strategies in accordance with local and international tax trends.
Transparency Disclosing tax information in financial reports and annual reports regularly
and publicly to ensure information transparency.
Proactive communication Developing open and transparent dialogues with tax
authorities to assist in improving tax systems.

72.6%

Tax incentives Instead of seeking abusive tax results violating the spirit of tax laws to
decrease tax burden, we use legal and transparent tax incentives.

E.SUN has achieved institutional standardization across the dimensions ofstrategy, management, technology, and perception, thereby enhancing information
security governance throughout. To accommodate the rapid changes on theoperational front, we have continuously refined our systems. In 2022, we shallcontinue adopting international standards, expanding our personal information
protection policies, and incorporate requirements for our information security
and privacy protection management systems. E.SUN also extended coverageof information security insurance to minimize the losses and impact that might
derive from disruptions of operations and ensure the best possible protection
for customers when making use of information services and for their personal
information.

Business structure Business structure and transactions shall reflect economic reality.
No special arrangements shall be used to avoid paying tax.
Risk management Evaluating potential tax risks and adopting appropriate strategies
when we make tax decision.
Commercial substance Related-party transactions shall reflect economic reality and thedecision-making party shall bear risk and take reasonable profits.
Arm’s length principle The trade terms of related-party transactions should be similar to
non-related-party’s.
Notes: For details on E.SUN's Tax Governance Policy and Transfer Pricing Policy, please refer to the ofﬁcial
website.

115

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 Tax Governance and Risk Control Mechanism
E.SUN has robust tax governance and risk control mechanism. The Board, the highest governance unit of tax, reviews the status of worldwide tax compliance and latest tax news
every 6 months to control tax risk and know global tax trend. Below are the cases under the mechanism in 2022.
Item

Tax Governance& Risk Control
Mechanism

Case Description
Complianceand planningTo fulfill tax compliance comprehensively and strengthen tax management, we made research on tax systems in the jurisdiction we operate in 2022. Besides,
we designed a significant expense reconciliation form for overseas operating sites to control tax risk and established the mechanism of reporting significant tax
issues to collect the financial and tax difference among jurisdictions.

Risk management

The Board of Directors control the frequency and amount of tax disputes to low risk level, using risks identification and three lines of defense mechanism tooversee tax matters; the hotlines and mail boxes are established internally and externally to report illegal or unethical tax-related matters.

Succession planning

We share experience on tax through internal regular meeting every week; tax knowledge is well passed down by the working papers and workflow chart.

Performanceappraisal

Tax personnel's performance is highly related to the annual tax work plan and evaluated by SMART principle. We prohibit tax personnel from using radical tax
avoidance measures to obtain high rating.

 Stakeholder engagement and management of concerns related to tax
To reinforce public trust, we proactively contact stakeholders to discuss tax issues and engage in public policy advocacy on tax to support the improvement of tax environment.

Taxauthorities

Peers and Banker
Association

We participated in public hearing held by Legislative Council in
2022 to know the possible tax amendment; we also proactively
contact tax authorities to discuss the proper tax treatments when
there is grey area in law.

Public advocacy-NGO

In 2022, 15 financial holding companies participated in tax online
meetings held by the banker association 3 times to discuss thepossible way of amending the tax system of financial holding
companies, trying to build a fairer tax environment.

Independent Directors
and Investors

116

E.SUN participates in the meetings held by international NGO-The B
Team every year. We exchanged ideas on global minimum tax withmembers in 2022. By means of involving in international tax reform
discussion, we enhance our competitiveness in the meantime

Independent directors specialized in accounting and tax oversee ourtax governance report every half of the year; the analysis of changes
in tax rates and sustainability issue of tax are disclosed publicly toinvestors on official website.

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Seeking for Common Good Income tax information-2022&2021
The effective tax rate of E.SUN FHC in 2022
is 20.71% which is close to the statutory tax
rate (20%) and the global average banking
effective tax rate (20.90%) from CSA
handbook 2023. Year-over-year change
in tax rate is mainly because the fair valueof ﬁnancial assets and liabilities changed
drastically in 2022, leading the recognitionof unrealized revaluation loss.

Unit: million NTD, %

2022

2021

Calculated averages

Profit before tax (A)19,903

23,95921,931

Reported taxes (B)

4,122

3,374

3,748

20.71%

14.08%

17.09%

（329）

222

（53）

74

1,636

855

Reported tax rate (B)/(A)Temporary difference

Adjustments (D)Tax-exempt income

Adjusted reported taxes (E)=(B)+(D)Effective tax rate (E)/(A)

3,867

5,232

4,550

19.43%

21.84%

20.75%

Income tax paid (F)

3,956

2,270

3,113

Cash tax rate (F)/(A)19.88%

9.47%

14.19%

 2022 country-by-country reporting
To realize global business strategy, E.SUN has operating sites in different tax jurisdictions. Mostof the ofﬁces are located in Asia Paciﬁc ﬁnancial center, Taiwan, China, Hong Kong and ASEAN.
Below is the tax information in each tax jurisdiction.

1.92%

1.61%

3.83%
3.01%
89.05%

Unit: million NTD / person

Revenues
fromunrelated
party

Net
revenueTaiwan67,00563,87014,519

2,841

China

2,634

1,375

574

Cambodia

1,708

1,158

The UnitedStates1,425

Hong Kong

Revenues
from related
party – crossjurisdiction

Number of
employees

2,869

1,919

8,901-9,000

32,46410998

8201-300

2,778

770

133

157

-

401-500

1,132

750

599

150

169

-

1-100

9

3,193

2,572

2,061

274

331

1,238

101-200

24

Singapore

1,700

683

477

131

70

54

1-100

10

Vietnam

292

199

129

20

26

4

1-100

4

Australia

1,485

690

514

235

176

6

1-100

53

Myanmar

96

151

78

20

24

90

1-100

45

Japan

704

275

182

43

57

4

1-100

20

Tax
jurisdictions

Proﬁt
beforetax

Current
Incomeincome tax
tax paid
expenseTangible
assets

Notes: For the detailed information of current tax expense, cash tax paid, expected tax at statutory tax rate and others,
please refer to the tax contribution report on ofﬁcial website.

117

9.82%

3.59%

Revenue

72.95%

3.87%
10.35%█ Taiwan█ Hong Kong

Proﬁtbefore tax█ China█ Cambodia█ Vietnam+Myanmar+

11.53%

Singapore+Japan+
Australia+The United States

3.80%
71.81%

5.94%
6.92%

Incometax paid█ Taiwan█ Hong Kong
█ Australia█ The United States█

Vietnam+Myanmar+Singapore+
Japan+Cambodia+China█ Taiwan█ Hong Kong
█ Cambodia█ The United States█ Vietnam+

Myanmar+Singapore+
Japan+
Australia+
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4.9 Human Rights Protection

GRI: 2-8, 2-23, 2-24, 3-3, 408-1, 409-1, 412-1, 412-2, 412-3 GRI G4: FS9

E.SUN aims to create a diverse, equal, inclusive, and belonging workplace environment.
The Human Rights Protection Team of E.SUN Sustainable Development Committee
holds meetings periodically and has formulated E.SUN human rights policies with due
reference to laws and regulations and human rights development trends. Every year, theteam reviews the E.SUN Declaration of Human Rights and E.SUN FHC Human Rights Due
Diligence Investigation Procedures regularly, and works with all partners to continuously
strengthen and improve the management of issues related to human rights. In 2022, E.SUN
participated in the "Taiwan-EU Joint Seminar on Business and Human Rights" organized by
the Ministry of Economic Affairs, sharing human rights practices as the only representativefrom the domestic ﬁnancial industry, and expressing support for the "National Action Plan
on Business and Human Rights," to make a contribution to international human rights.

 Human Rights Due Diligence Process
The Human Rights Protection Team formulates the human rights due diligenceprocess, and regularly identiﬁes, assesses, and evaluates potential human rights
issues and risks in its operations, value chains, new business activities (such as
mergers, joint ventures), and other related activities through social engagement, data
monitoring, and surveys. A risk matrix for human rights issues is established, andcontrol plans are drawn up based on potential risks, with continuous supervision andimprovement of the implementation results to fulﬁll the human rights policy.

Impact identification

Assess risk

Establish plans

Monitor and implement

Review and improve

Regularly review ouroperations, value chain,
new business relations(such as mergers,
acquisitions or joint
ventures) and otheractivities to identify
groupsat risk and potential
human rights issues.

Identify E.SUN FHC
stakeholders in groups
at risk and evaluate thepossibility and impact
of potential risk toestablish human rights
risk matrix.

The human rights protection
task force proposes
mitigation and remediation
measures at E.SUN
Sustainable Development
Committee to formulatea plan for human rights
issues; the scope 100%covers all of E.SUN FHC's
operating sites in Taiwan
and the 30 operating sites in
10 overseas regions.

Established mechanisms tosupervise, track, andevaluate improvement
plans. Monitor theeffectiveness ofimprovements made topotential impacts.

Review the evaluation
tools and processes
and reexamine andadjust practices andcommitments
related to human rights
issues.

118

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 Impact identiﬁcation
E.SUN strictly scrutinizes potential human rights risks in various aspects and implements its commitment and responsibility for human rights with relevant units following speciﬁc
guidelines. For employees, we ensure that human resources policies do not jeopardize labor rights; for suppliers or partners, we evaluate the sustainable development and humanrights issues through public information and self-assessment forms to avoid dealing with high-risk parties; for customers, we enhance the protection of rights and personal privacy,
and carefully selects credit or investment targets. The impact identiﬁcation is as follows:
E.SUN

Value chain
Supplier/Partner/Others

Customer

New business relations(mergers, acquisitions, joint ventures)Groups exposed tohuman rights risks

Employee, Women, Indigenous people,
People with disabilities, Migrant workers,
Non-employee workers

Women, Children, Indigenous People,
People with disabilities, Dispatched
Customers in minority
labor, Migrant workers, Non-employee groups
workers, Local communities

Women, Children, Indigenous People, People withdisabilities, Dispatched labor, Migrant workers, Nonemployee workers

Potential human rights risks． Diversity and inclusion． Gender equality． Forced labor and overtime． Occupational safety． Workplace violence． Privacy． The right to collective bargaining． Human trafficking． Equal remuneration． Discrimination． Forced labor and overtime． Gender equality． Occupational safety． Child labor． Freedom of association． The right to collective bargaining． Human trafficking． Equal remuneration． Discrimination． Forced labor． Gender equality． Occupational safety． Child labor． Freedom of association． The right to collective bargaining． Human trafficking． Equal remuneration． Discrimination． Service quality andcustomer rights． Personal information
protection． Human rights practicesof corporate customers

Note: Non-employee workers are those other than E.SUN’s employees, including interns, temporary workers, and contractors’ employees, providing services such as information, security, and cleaning.

 Human rights risk matrix

ProbabilityHigh

In response to potential human rights risks for employees, suppliers and customers (including investment and credit subjects), we established a human rights risk matrix as follows.
The mitigation and remediation actions please refer to Appendix 12 - Human Resource Management Indicators.
●● Forced labor and overtime●● Gender equality●● Occupational safety● Service quality and customer rights● Diversity and Inclusion● Labor Rights● Personal information protection● Human rights practices of corporate customers● Privacy●● Freedom of association●● Right to collective bargaining●● Equal remuneration●● Discrimiation

Low● Employee ● Supplier ● Customer

Impact119● Workplace violence●● Human trafﬁcking● Child laborHighOur People

E.SUN is committed to "making E.SUN
the second home for employees" by
providing a competitive salary, different
development opportunities and diverse
welfare measures that meet the needsof colleagues, so as to attract andretain the most suitable talents to build
a hopeful future together.

5.1 Talent Cultivation and Development
5.2 Talent Attraction and Retention
5.3 Employee Care and Friendly WorkplaceOur Story

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With DEI as the core, create a happy second home for E.SUN members
Talents are both a leading indicator and a key indicator, but also the key to thesustainable development of enterprises, E.SUN adheres to the people-oriented spirit,
attaches importance to the value and practice of DEI (Diversity, Equity, Inclusion), in
order to strengthen the promotion and development of various policies, In 2021, the"Sustainable Development Committee" of ESUN set up a "Human Rights Protection
Team", headed by CHRO, who will regularly initiate initiatives and system planning on
employee care, gender equality in the workplace, and other human rights protection
issues, and in April 2023, the organization of the human resources division was
adjusted, and the DEI responsible unit "Occupational Safety and Staff Relations
Section" was established. With the goal of creating a better employee experience.
This unit makes employees have a sense of belonging, so that talents with different
characteristics can feel accepted and respected in the E.SUN family, and create afriendly workplace with psychological safety.

EquityDiversity

E.SUN recruits talents from diverse backgrounds such as different nationalities,
scientific specialties, indigenous people, people with disabilities, LGBTQ+ to join theteam. E.SUN recruits talents of various nationalities, nursing, humanities, science andtechnology through industry-university cooperation and ASEAN talent scholarships.
At present, E.SUN has a total of 30 overseas branches in 10 countries and regions,the nationality of employees covers the United States, Japan, Australia, Vietnam,
Myanmar, Cambodia and other countries, the proportion of foreign employees in 2020is 2.98% of all employees, increasing to 3.39% in 2022. In addition, E.SUN has also
set a long-term goal of "6% of all employees in DEI diversity by 2030", and continues
to strive towards a more diversified and inclusive workplace environment throughcontinuous promotion in an organized and step-by-step manner.

121

E.SUN treats all employees equally, without distinction based on race, nationality,
gender, sexual orientation, religious belief, age, political orientation, etc., including
long-term promotion of gender equality in the workplace, creating an antidiscrimination workplace, and setting up gender-friendly toilets, comprehensive
welfare and maternal care measures in our own buildings, and supporting thefreedom of same-sex marriage. In terms of promotion system, E.SUN continues topromote equal recruitment, appointment, promotion and salary adjustment, andcontinues to cultivate outstanding women to management positions, The proportionof female supervisors of all employees is 37.74% in 2019, and the number
increase to 40.85% in 2022. E.SUN also sets a long-term goal of 45% female
supervisors in 2030. E.SUN's efforts in gender equality have been recognized athome and abroad. In 2022, E.SUN was awarded with the Taipei City Government's
first "Gender Equality Indicator in the Workplace" certification and the Taiwan
Sustainable Award - Gender Equality Leadership Award, and was selected in the"Bloomberg Gender Equality Index" in 2023.
Inclusion

Create an inclusive culture where employees feel valued, respected and treatedfairly. E.SUN attaches great importance to the feedback and voice of eachcolleague, and sets up diversified communication channels, including E.SUN
e-HR Portal Message Board", "Employee opinion reflection/reporting section","CHRO Mailbox", "Mentorship Mailbox", "Gender Equality and Workplace Bullying
Complaint Box". Employee can choose appropriate channels to reflect problems
in real time, and the dedicated unit/specialist will quickly handle and reply it. In
addition, the " Knowledge Sharing Meetings " held at the end of each year, in which
the management team directly communicates the organizational development
strategy with colleagues, and an anonymous opinion exchange questionnaire wassent to everyone after the meeting, encouraging E.SUN employees to express
their ideas. The management team will quickly give the feedback and directly
communicate with the employees to create a truth-telling working environment
through transparent and direct channels.

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Seeking for Common Good3-3, 402-1, 404-1, 404-3;
5.1 Talent Cultivation and Development GRI:GRI G4 Financial Services Sector Disclosure Indicators: FS4, FS16

E.SUN upholds the core values of integrity, professionalism, and long-term commitment to talent cultivation. Combining a culturethat emphasizes discipline with an innovative spirit, we continuously strive towards a common vision, creating value for customers,
employees and E.SUN.

 Cultivation and Training
Career Training System

E.SUN adheres to the philosophy of"Growing the talent before growing thebusiness" providing diverse learning
opportunities and career paths inthree major training areas: financial
professionalism, humanities, andstrategic transformation. We design
courses based on evolving financial
trends, E.SUN's strategy, customer
needs, and employee needs, andthrough continuous improvement andinnovation, we create an environment for
employees to grow continuously.

Tailor-Made Courses According toProfessional Development Needs

To become Asia's most distinctive
benchmark bank, E.SUN not only
continues to develop unique domestic
and international businesses,but also
cultivates more outstanding talents,
which is the key to winning in thefinancial competition. Each professionaljob series in E.SUN has its uniquecultivation module, and both online
and offline learning resources aredeveloped based on employees' ability
and speciality, providing E.SUN Bank
employees with a complete learningjourney.

Training achievements in 2022

Training hours completed by managerial employees
Average training hours per person
Training hours completed by nonmanagerial employees
Average training hours per person
Total training hours
Training hours per person
Total training hours per person
Average amount spent per person ($NT)
Employee training expenses / Total Revenue
ROI of human capital

2020
Male
Female15,794
4,925
43.2
51.3
175,648
236,83845.6
46.6
433,205
45.3
45.8
45.59
48,521
0.89%
267%

2021
Male
Female24,031
7,760
62.9
73.9
188,700
229,386
50.1
45.8
449,877
51.2
46.4
48.57
36,460
0.67%
277%

2022
Male
Female29,288
9,566
70.9
81.8
210,872
272,96358.7
54.8
522,688
57.8
55.3
57.38
45,2590.75%
254%

Note: Managerial employees refer to managers and above.

Professional Training Course• Corporate Banking Assistant Relationship Manager(ARM)
Development Module: Blended Learning
By integrating online and offline learning resources, employees
can independently learn and strengthen their prerequisiteknowledge before training, and strengthen practical applications
through discussions and practices during physical training, which
enhances the learning effect. After the course, participants will
return to their units and begin professional internships.
Before Course

In Course

After Course

e-Learning+

Practice

On the Job Training•Corporate
Banking•Risk
Management•Business &Products•Credit Report
Writing•Financial Analysis•Business System
Operation Practice•FAQ Seminar•Experience ofsenoirs•RM Leaders andcolleagues help
ARM to be able toundertake the task
on his/her own.

122

• Wealth Management Specialist Development
Module: Practical Business Scenario Exercises
Through practical training topics, a checkpoint
model is adopted to hone participants' on-thespot responses. Senior colleagues are invited
to serve as checkpoint masters and provide
critiques and feedback on site, deepening
employees' practical application skills.

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Enriching Training Content, Nurturing 'Soft Power' Skills

E.SUN not only values financial professionalism, but we also hope to contribute to a better future forsociety and the land we deeply love. Our core courses at all stages demonstrate our profound foundationin humanities, arts, and other soft power skills.
Orientation
At E.SUN's orientation, in addition to solid financial professionalism, a variety ofcourses and activities are arranged to allow newcomers to understand E.SUN frommultiple perspectives and profoundly comprehend the expectations E.SUN has for its
employees.

Hope Engineer cultivation program (Mid-level Manager training courses)
E.SUN's middle-level managers bear the important responsibility of connecting
the supervisors and subordinates of the organization. In addition to cultivating
management and leadership skills, they also view ESG sustainable development
as their mission. Through the Hope 13 Wilderness Marathon, combined with local
ecological conservation awareness, the team works together to contribute toimproving society and the environment.

Trainee Feedback
Although the progress waschallenging, because of
our teammates, we were
not afraid of hardship.
We shared joy, and sweat,
faced challenges, and willco-create a better future!

123

Surprisingly, theteammates from overseas
put on our team uniforms
and ran the Marathon in
Singapore. Therefore, wehave every teammateon the certificate ofcompletion. I was sotouched!

My biggest reward is
the change of mindset,
from only take careof myself, to be able
to work well with theteam together.

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Manager Advancement Program
E.SUN's managers not only need to have outstanding leadership thinking
but also need to build team consensus and integrate team performance. By
visiting high-quality enterprises in person, the managers learn about theiroperations and support for ESG, broadening their horizons and enhancing
their ability to implement change.

Building Resilience

Our People

Seeking for Common Good

OutcomeTraining
Category◎ Company Visit Introduction: In response to the ESG concept, thecompany exerts its influence on the design and manufacture of fabrics
and garments to achieve the concept of "sustainable success throughgarments."
Music Appreciation (Indigenous Choir and Jazz Band)◎ Music Appreciation: Invite local choirs and jazz bands from Taiwan toelevate the cultural and emotional thinking of supervisors, cherishing ourbeautiful homeland, and expressing gratitude for all that has been hardearned.

124

Number ofParticipants

CourseSatisfaction

Instructor
Satisfaction

Course Pass
Rate

Orientation

287

96.00%

96.40%

90.50%

Professional
Training Course

276

96.40%

96.20%

100%

Hope Engineer
Training
courses

211

94.82%

94.93%

100%

Manager
Advancement
Program121

95.53%

95.39%

100%

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 Cultivation Program for Transformation Strategy

Amid the rapid changes in the global industry and economic environment, E.SUN has set strategic goals for the next decade,and cultivated key talents through a strategic talent cultivation plan to support the company's steady progress towards
sustainable operation. In 2022, E.SUN adjusted the focus of its "ESG Sustainable Finance" and "Technology Empowerment"
Cultivation Program and enhanced the overall training effectiveness, helping E.SUN move towards its target vision:

ESG Sustainable Finance Cultivation Program
Coverage ratio 100%Program description
1.Convey sustainable culture thinking

・Target：・Objective：
ESG sustainable development is a crucial strategic All E.SUN employees
goal for E.SUN in its fourth decade. The principle ・Cultivation Direction：of Growing the talent before growing the business In addition to general knowledge, many ESG-themed courses are incorporated into various
guides E.SUN integrated ESG elements into a well- training programs, inviting internal and external experts, and entrepreneurs involved insustainability initiatives to share relevant issues. Furthermore, through activities such as
rounded talent development system.
tree planting, beach cleaning, and hiking, employees have the opportunity to participate in
We also have relevant departments, such as theand implement sustainability firsthand.
Green Finance Department, Sustainable Finance
Department, and ESG Group of E.SUN FHC toserve as course instructors, leading employees
to continually focus on ESG issues and jointly
implement corporate sustainability responsibilities.

E-Environmental
Environmental sustainability
Continuing
training for
managers
Hope Engineer
training courses

Orientation for new clerks;
Professional courses for all positions
Knowledge Sharing
Seminars; Environment
Creation;IndustryUniversity Collaboration

Forums, workshops
and lectures

S-Social

G-GovernanceRealizing E.SUN's vision

Building sustainable culture• Green Finance and sustainability-related courses• Invite the "Chief Sustainability Officer of AUO" to share opinion with trainees

Exercising influence and leading in ESG• Invite sustainability entrepreneurs who jountly intiated ESG to share thier opinion• Invite the founder of "Empowering Lives through innovative Volunteerism (ELIV)" to share opinion
Get to know CSR and havevolunteer engagement

Green finance in life education

The embodiment of corporate culture

L (Leading in innovation),O (Outstanding Governance), V (Co-creation of Value), E (Environmental Sustainability)

125Our Story

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2. Becoming the Best Partner for Corporate Sustainability Transformation- Corporate Finance• Objective：
E.SUN collaborates with like-minded corporate partners to launch the"E.SUN ESG Sustainability Initiative," with the Corporate Banking RM
Team playing a vital role in companies' ESG development journey.
Through various training methods and content, E.SUN systematicallycultivates the RM Team's understanding of ESG market andinternational sustainable development trends, assisting enterprises
in developing E.SUN ESG-related operations and becoming the best
partner for Taiwan's corporate sustainability transformation.
• Target：Corporate Banking Division, RM Teams• Cultivation Direction：
To cultivate sustainable talents and enhance overall ESG expertise,
E.SUN arranges relevant content education and training for all stagesof the corporate banking career path. Subjects include global ESG
development trends, domestic and foreign sustainable financeregulations, major international ESG evaluation institutions, industry
ESG development overview, sustainability reports, ISO certification,
carbon footprint, and sustainability-linked loans, and so on.

Building Resilience

Business benefits and effectivenessof cultivation programs

E.SUN continues to pay attention
to sustainable trends andcustomer needs, integrating ESG
with business development. For
example: Encourage customers to
set sustainable goals and commit
to Sustainable Linked Loan (ESG
Linked Loan), Invest in various
types of renewable energy project
financing, assist customers in issuingsustainable development bonds,
etc., and increase the proportionof sustainable credit in the overall
corporate loan volume year afteryear, successfully creating a positive
cycle of sustainability and businessperformance.

Our People

Seeking for Common GoodESG Sustainable Finance Cultivation Program- Cultivation
Outcomes
Item

Indicator

2020

2021

2022

L1 Reaction Course satisfaction

93.29% 94.80% 92.87%

Course completionrate

99.87% 98.00% 97.73%

L2 Learning

Number of training
course participants
taking partL3 Behavior in volunteer activities

L4 Results(NT$ M)

862

296

762

Staff turnover rate
(Corporate Banking
positions)

5.19%

7.1%

9.41%

Green loans

11,106 18,726

53,741285 10,681

40,642ESG-linked Loans
Loans to ESG
industries

249,685 261,464 272,415

Total sustainable loans 261,076 290,871 340,876
L5 ROI

3. Sustainable Finance Manager Training Program• Objective：
Aiming to become a netzero emission bank by 2050,
E.SUN systematically establishs a sustainable talentdevelopment system, nurturing more seeds for sustainabletransformation, and making E.SUN a benchmark enterprisefor sustainability.
• Target：
E.SUN practitioners with high relevance to their businessscope and ESG.
• Cultivation Direction：
The course is co-designed by the "Taiwan Sustainable
Energy Research Foundation" and E.SUN, and features
top scholars and experts as lecturers. The content covers
introduction to sustainable finance, climate change
and sustainable supply chain management, etc. A totalof 15 courses are planned, and a verification test isarranged after the class. In 2022, a total of 73 colleagues
participated, and finally all members passed the test andbecame "Sustainable Financial Managers"

126

Profit / training course
related costs

43.11

38.54

57.47

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Technology Empowerment Cultivation Program
Coverage Ratio

40%

Program Description
1.Business Analyst (BA) Capability Cultivation Program• Objective：
In its fourth decade, E.SUN aims to continuously strengthen organizational agility andresilience and lead various business developments through financial technology. Business
Analysts (BAs) will be the key driving force for organizational development. E.SUN plansa dedicated BA capability Cultivation Program that combines digital courses with physicaltraining classes, using a blended learning approach to guide all BA staff in understanding
basic knowledge, system regulations, tool applications, and other professional
competencies. This will help them cultivate core job skills, implement them in practicalfields, and assist E.SUN in promoting various information system projects.
• Target：Business Analysts (BA) colleagues• Development Direction：
The overall training plan starts from the digital course to external training. In addition to theenhance of professional knowledge, it is expected to also cultivate the two major strengthsof "problem solving" and "efficient management". Various methods such as project
discussion and special book study are also integrated into the course process to enhancethe overall content diversity.
BA Digital learning
Program

1. Build basic knowledge
2. Target: ABA

3. Cultivation Module
・Project system
specification
・Evaluation and selectionof supplier・BA toolkit

1. Cultivate BA corecompetencies
2. Target: BA

3. Cultivation Module
・ABA course
・BA course
・SBA courseBA
professional course

1. Cultivate BA core talents
2. Target: BA, SBA

3. Cultivation Module
・Case Study
・Thematic Learning

External training

1. Cultivate businessanalytics and innovation
2. Target: BA, SBA, EBA

3. Cultivation Module
・Problem solving
・Efficient management

BA Course

2. Expanding FinTech Horizons - E.SUN Tech Seminar• Objective：
To continuously improve the expertise of the technology team andstay updated with external technology trends, E.SUN has invited wellknown external companies to collaborate and organize five "E.SUN
Tech Seminar" events in 2022. This will expand the overall FinTech
horizon and cultivate more outstanding technology talents.
• Target：Technology team supervisors• Cultivation Direction：
Each partner will plan suitable themes for fintech development
according to their service scope. The internal managers of the partnercompanies will serve as lecturers to promote cross-team collaborationand enhance E.SUN's overall technological influence through mutual
discussion and sharing.

Microsoft Day
Oracle Day
E.SUN

X

Google Day
IBM Day
Gartner Day

127

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3. Comprehensively enhance digital technology capabilities• Objective：
In order to comprehensively enhance E.SUN's staff understanding of FinTech, E.SUN not only
arranges relevant courses in the core training, but also promotes the digital ability certification
through the e-Learning system to comprehensively enhance E.SUN's staff understanding of FinTech.

Beginner's
guide• Target：
1. New employees, Hope engineers(Mid-level managers), Managers
2. Digital certification is an autonomous learning course• Cultivation direction：
The tech team is responsible for the planning. The core training plans different levels of face-to-facecourses according to the different attributes of the students. The digital ability certification is mainly
based on general education courses. It is expected to lead E.SUN's staff to understand FinTech
through online and offline hybrid experience.
Cultivation Program

CourseImplementation of Basic Data Analysis
Information Security and Data Confidentiality

DigitalProducts /Services

DigitalAbility
Certification

e.FingoCredit card and digital financial payment businessapplication
Orientation

Digital development and customer base management

PopularScienceTechnological innovation service case
E.SUN Information Development and Transformation
AI in Banks
Tech Team Workshop-Digital in Transformation
Hope Engineer cultivation
program

Tech Team Workshop-Leading Technology

Manager Advancement
ProgramCustomer Experience Design in the Digital Age

Credit card and digital financial payment development

128

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4. Subsidies for professional technological licenses andcertifications• Objective：
To continuously encourage employees to pursue
self-improvement and develop diverse technicalexpertise, E.SUN has established special certification
subsidy guidelines to motivate employees to obtainspecialized professional certifications in response to
future strategic development.
• Target：All E.SUN employees• Subsidy items：
1. Including Certified Business Analysis Professional(CBAP), Project Management Professional (PMP),
Agile Certified Practitioner (PMI-ACP), and othercertifications, each with a subsidy amount of
20,000 to 30,000 NTD. A total of 537 specialized
professional certifications have been subsidized.

Banking for Better

Building Resilience

Business benefits and effectivenessof cultivation programs

With its profound fintech strength,
E.SUN has been steadily developing
its digital business over the long term
while continuously accelerating its
digital transformation in cooperation
with the Technology Team andvarious business units, building the
E.SUN Financial Ecosystem. For
example, the continuous improvementof the app's features creates a better
customer experience; by connecting
all digital services through theplatform, customer adhesion isstrengthened, and overall satisfaction
is improved.

2. Additionally, to strengthen E.SUN's technologicalprowess in the cloud computing field, E.SUN
has collaborated with Microsoft to provide theTechnology Team with "Azure Cloud Technology
Courses and Certification" opportunities. So far,
269 Technology Team staff have obtained relevant
technical certifications.

E.SUN cultivates talent through rotation training, placing the right people in the rightpositions and providing diverse development opportunities. This allows employees
to experience various positions, enriching their professional skills and enhancing
management thinking. Through their own efforts, they can create their future and become
the talents needed by E.SUN in the future.

Rotation Training and Internal Recruitment
Projects

2018

2019

2020

2021

2022

Internal Employee Job-Filling Rate

47.26%

46.43%

73.9%

59.24%

70.25%In 2022
Job-Filling
by Internal
Employees
Number of People

By Gender
Male Female
332

289

By AgeBy Identity

Under 2930-50
Over 51
Non- Total
Supervisor
Years Old Years Old Years Old
Supervisor
135

436

50

275

346

129

621

Seeking for Common Good

Technology Empowerment Cultivation Program- Cultivation Outcomes
Item

L1
Course satisfaction
Reaction

2020

2021

93.9%

97.9%

95%

Number of employees with certified
L2
Learning digital ability

1,531

2,434

2,696

Indicator

11.3%

11.3%

11.3%

38

26

52

IT-related employee percentage
L3
Behavior Number of patent acquisition

2022

Online loan - unsecured personal loan
106.77 228.76 362.47(NT$ B)
L4
Results

L5 ROI Rotation Training

Our People

Online loan - mortgage (NT$ B)
Online loan - unsecured
personal loan (applicants)

101.30 127.98 225.68
66,988 107,541 101,582

Online loan – mortgage (applicants)

5,258

6,370

Customer satisfaction on digitalplatforms

93.1%

90.2% 94.04%

38.16

34.25

Profit training course related costs

5,901

25.73

Proper Arrangement of Job Rotation
To protect employee rights and interests, job rotations for careerdevelopment or organizational needs will be handled according to the"5 Principles of Rotation" stipulated by law, providing employees withapproximately two weeks for business transition and preparation in the newenvironment. In addition, if circumstances occur under Articles 11, 13, and
16 of the Labor Standards Act, the notice periods are as follows:• For those who have worked continuously for more than three months
but less than one year, a 10-day advance notice is required.
• For those who have worked continuously for more than one year but
less than three years, a 20-day advance notice is required.
• For those who have worked continuously for more than three years, a30-day advance notice is required.

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Seeking for Common Good Performance Development
Talent Development-Oriented Performance Management Cycle
E.SUN's performance management system upholds the spirit of talent development,
continuously identifying potential talents through two-way communication andperformance interviews, providing diverse development stage opportunities,
and focusing on developing potential and required skills. For employees who do
not meet expectations, clear requirements and guidance are provided. In 2022,
At the beginning of the year

Strategy formulation．Announcing E.SUN's
annual strategy．Each unit formulates actionplans and objectvie.

Objectives setup

Based on unit
goals,measurable personalgoals are jointly set bysupervisors and employeeswith interviews

the original five-level performance evaluation system was adjusted to six levels,
using a normal distribution method to enhance talent identification, and throughclear explanations and guidance, allowing all employees to participate in theperformance management cycle, making commitments and putting them into
practice.

Mid-year

Immediate feedback．By leveraging real-time feedback,
we ensure effective day-to-day
management and performanceassessments. Additionally, we conduct
mid-year performance reviews.
．We dynamically review the execution
status of goals and make timely
adjustments. We also initiate
performance improvement plan asneeded, depending on the situation.

Multidimensional Evaluation for Growth and Development
The key to sustainable operation is to continually focus on talent development
and cultivation. Since 2013, E.SUN has implemented a 360-degree feedback
system annually, helping supervisors achieve self-awareness by understanding
their strengths and weaknesses through feedback from different dimensions,and actively improving or enhancing leadership and management capabilities.

Year-end
Year-end
assessment

Management
application

Based on the unit's
evaluation results
and individual goal
achievement, we conduct
performance interviews
and year-end appraisal.

．The assessment results should
be applied to team-based
motivation.
．Individual appraisal results
should be used for bonuses,
promotions, training,development, and performance
improvement plan.

Effectiveness of E.SUN's 360-Degree Feedback System
A total of 2,332 feedback recipients
participated, with a participation rateof 93.28%

In 2022, E.SUN offered Chinese and English guidance on the digital learning
platform, including explanations of management competencies and learningand development recommendations, assisting domestic and overseas
supervisors in understanding their self-capabilities by reviewing feedback
reports. The evaluation results will be used for individual development planningand related competency training, further enhancing self-awareness andcommunication efficiency by listening to team feedback.

Each feedback recipient received anaverage of 7.3 feedback responses

130

A total of 17,040 feedbackquestionnaires were received, witha questionnaire completion rate of

96.91%

Our Story

Journey to Net Zero

Banking for Better

Building Resilience

Our People

Seeking for Common Good

5.2 Talent Attraction and Retention
E.SUN carefully selects a group of like-minded partners. We actively invest
resources in recruiting outstanding and potential talents, and are committed tomaking E.SUN the second home for employees by providing a competitive salaryand welfare system that meets the needs of colleagues, so as to attract and retain
the most suitable talents to build a hopeful future together.

 Recruiting a Diverse Pool of Professionals andInternational Talents

Countries, industries and enterprises all need outstanding talents to generate
momentum for innovation and progress. E.SUN has been deeply committed tonurturing Taiwan's financial, technological and cross-border professionals, and has
actively dedicated to ESG field and cultivating international talents by collaboratingwith industrial partners, governments, academia, and research institutions in order
to work toward the goal of being the international finance-leader.

Collaboration with Industries and Academia
Category

Item

Academia

Effectiveness

ACT Dreamer
Project -ESG
influence projectThrough courses and coaching, E.SUN collaborated
with students on proposal and practice for ESG projectin order to cultivate students to be world citizens whom
are not only innovative but also are concerned aboutsustainability.

E.SUN AI Open
Challenge

Upholding the idea of "enterprise members name theThis competitions participated by a total of 684 teams of 1,250 professionals in 2022.
issues and participants solve the problems", since 2019, So far, we have hosted 8 competitions, which were participated by more than 10,000 AI
we have been holding the Artificial Intelligence Open
professionals from 6,327 teams.
Challenge, at which invited AI professionals to solve
real financial problems with AI, thereby finding a better
solution to sophisticated fin-tech decision-making.

E.SUN
International
Talent Cultivating
Program

E.SUN signed a memorandum of understanding with theInternational Cooperation and Development Fund in Q4,2021 to nurture diversifiable international talents. The
bank promoted finance courses in 2022.

College of Global
Banking and
Finance

E.SUN collaborated with governments to nurture
In 2022, E.SUN has recommended 9 employees participated in the courses of Global
excellent international finance talents by becoming one
Banking and Finance in National Chengchi University, and National Sun Yat-Sen
of joint contributions of National Chengchi University and University, and has sponsored NT$ 10 millions for these 2 universities.
National Sun Yat-Sen University.

Industries

Governments

Description

Internshipprograms

E.SUN provides students aspiring to work in the financial
industry with internship programs during each semesterand summer/winter vacations to help them establish theright work attitude and improve their adaptability andcompetitiveness.

131

In 2022, E.SUN coached 8 groups (34 students) making proposals, selecting 2 groups
as the representation of the bank for the final competition. Among those students, 3
students also participated in the summer intern program of the year.

The bank collaborated with the International Cooperation and Development Fund inorder to promote training programs for foreign students. There were 13 international
students participating in this program and one of them became the bank's management
associate after graduation.

Interns of financial profession
They include interns at the sections of financial services, wealth management, andcorporate banking; there were 190 students in 2022, 885 interns have been accumulated
since 2014.
Summer Internship program
There were 26 students participated in this program in 2022, and 252 interns have been
accumulated since 2011.
Interns of fintech professions
To facilitate digital transformation, we actively cultivate and recruit talents having
information and digital skills. There were a total of 6 students in 2021, and 38 interns
have been accumulated since 2019.

Our Story

Category

Academia

Research

Journey to Net Zero

Banking for Better

Building Resilience

Our People

Seeking for Common Good

Item

Description

Effectiveness

Scholarships

Cultivating talents in financial, technological,
humanity, and nursing fields, and those from countriesof ASEAN, through sponsoring on campus activities,
financial courses and scholarship, and in so doing
leave a nice impression on the staff and students of
the academia.

GrantsDistributed NT$ 960 thousands in 2022 to students from National Taiwan University,
National ChengchiUniversity, and National Sun Yat-Sen University, etc.
Scholarships
In 2022, we awarded E.SUN Talents Scholarship to 36 students, distributed NT$4.7
million.
- Nurturing outstanding management personnel Scholarship to 21 students(Management:
6 students; Technology: 5 students; Humanities:5 students; Inspirational role model: 5
students)- Nursing Talent Scholarship to 8 students- E.SUN ASEAN Scholarship to 7 students

E.SUN has been committed to applying AI technology
to various scenarios. Through the close collaboration
between academia and the industry, results ofresearch were successfully put to practical use
and have thus enabled us to provide great financial
services in fields such as risk control, operations, andmarketing.

We established E.SUN AI and FinTech R&D Center with National Yang Ming Chiao Tung
University in 2018, and AI and FinTech R&D Center with National Taiwan University
in 2019, and worked on projects under the name of Academia Sinica X E.SUN AI
R&D Center with Academia Sinica in 2020. In 2022, we conducted 14 projects with18
professors, including refining appraisal of real estate predictive model, strengthening
speech recognition and comprehension in AI customer service, and enhancing
technologies and models to apply operations in E.SUN.

E.SUN AI and
FinTech R&D
CenterInternational Talents' Attraction and Cultivation

Item2022 E.SUN International
Talent Cultivating
Program(ITCP)

E.SUN ASEAN Scholarship

Staffing of international
talents

Description

EffectivenessSelecting foreign students studying in
Taiwan to participate in English financelectures designed by E.SUN so as toenable those students to understand theecosystem and development of Taiwan
banking industry.

13 international studentsjoined this program, including
students from Vietnam,
Indonesia, Malaysia, Thailand,
Honduras, Haiti, Saint Lucia,
etc.

Encouraging outstanding ASEAN talents
to study in Taiwan, and cultivatingthem with international expertise andcapabilities. Inviting those scholarshipwinners to join E.SUN charity events.

There were 7 scholarshipwinners in 2022. E.SUN has
cultivated 33 students who
are from Vietnam, Thailand,
Myanmar, Cambodia, etc.
since 2018.

In response to the wave ofinternationalization, E.SUN has
increased the hiring numbers ofinternational talents since 2022 tostrengthen the bilingual financial service
in the banking system in Taiwan.

Since 2020, E.SUN has
recruited 12 foreign talentsfrom Japan, Germany,
France, Malaysia, Myanmar,
Cambodia, Vietnam, etc.

132

Foreign management associates experience sharing
Experience-Sharing from excellent Vietnamese talents
I'm really thankful for all opportunities such as E.SUN BankASEAN Scholarship, ITCP, and the 2022 E.SUN MA program
offered by E.SUN . During this journey, my senior colleagues
enriched me with deep insights, cultivated me with practicalexperience, and showed concern for me with compassion. E.SUN
provides a diverse and international working environment,
enabling talents to grow and be supported. I'm honored to
become a member of the E.SUN family.
－ E.SUN FHC 2022 Management AssociateOur Story

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Seeking for Common Good

 Retention"Listening to the voices of our colleagues and making E.SUN the second home for them" is E.SUN longlasting belief. Through competitive salary structures, diverse benefits that superior to regulatory stipulations,and comprehensive retirement systems, we provide all-around care and support for employees to attract andretain talents. Each year, after the annual knowledge sharing seminars, through anonymous questionnaire
surveys, E.SUN seek colleagues' feedback on business strategies, salary and benefits as well as employee
care, etc. to serve as the basis for improvement and sustainable organizational development.

Comprehensive remuneration and benefits planning

Competitive
Compensation System"Setting salaries
based on position andbonuses based on
performance"•Setting a fixed pay according to job duties, professional skills, and market standard (including principal salary andvarious allowances).
•Providing variable pay (including bonus and remuneration) according to the company's overall performance,
department's performance, and individual performance.
•Participating in the market salary survey every year and providing a reasonable and competitive compensation
system.
•Linking the organization's long-term business performance and corporate governance in establishing long-term
incentives and rewards.
•Continuously selected as a constituent stock of the TWSE RAFIR Taiwan High Compensation 100 Index since 2018.
•In 2022, the average salary was raised by 3-5%Note.

Long-Term
incentive
Variablebonus

Deferredcompensation

BasesalarySalaries basedon position

Bonuses basedon performance

Note: Subjects included in this salary statistics are full-time employees in Taiwan who have worked in E.SUN for no less than 1 year.

Diverse welfare andemployee care
Focusing on employee
experience, creating a
happy workplace•Providing complete, comprehensive, and diverse welfare and employee care measures and established a solid talent foundation and a harmonious
workplace environment.
•Combining the concept of sustainable environmental management, we create an eco-friendly, innovative technology, and artistic atmosphere in theoffice space while considering the flexibility and creativity of interactions among colleagues.
•Actively promote a variety of health and leisure activities to encourage physical and mental well-being and work-life balance.
•Organizing "E.SUN Peak" events, which is teaming up to climb the highest mountain "Mt.Jade" in Taiwan, to inspire colleagues to challenge andovercome obstacles together with their team members in adversity.
•Encouraging childbirth by providing better-than-legally-required maternity leave (60 days), parental leave (8 days), pregnancy checkup
accompaniment and paternity leave (8 days), and baby care leave (3 years), as well as establishing the "E.SUN Baby Development Fund", which
not only encouraged employees to have children, but also had the effect of inducing other enterprises to emulate, thereby generating greater social
influence.
•Aside from labor insurance and health insurance, E.SUN also provides life insurance, accident insurance, and critical illness insurance. Insurance
premiums of an employee and his/her spouse and children are fully born by E.SUN; insurances for parents may be purchased at the employee's
expense.
•In 2022, E.SUN won the prestigious "Asia's Best Employer" and "WeCare Best Employee Care" awards from the benchmark Asian talent magazine 《HRAsia》 and was the only financial holding company to win the Work-Life Balance Award.

133

Our Story

Comprehensive
retirement protection
Encouraging long-termsavings and ensuring
retirement

Journey to Net Zero

Employeesavings
association(employeestockownershipprogram)

Building Resilience

Our People•For those subject to the "Labor Standards Act", E.SUN allocates retirement reserves ranging from 2%-15% of
employee salaries to Taiwan Bank's special accounts on a monthly basis, all of which are fully allocated.
•For those whose employment started on July 1, 2005 or opted for the new pension system, E.SUN allocates a
6% monthly pension according to the law.
•Pension for overseas employees is subject to local laws and regulations.
•To reward employees with outstanding performance, retirement bonuses in addition to pension may beprovided according to their work performance or special contributions.
•To encourage early retirement planning, E.SUN has established the employee savings association stock
trust. Employees who have passed probation are free to join the association, and the company contributes
incentive bonuses thrice each year.
•Provide retirement trust projects exclusively for E.SUN employees, encouraging them to plan asset allocation
early on to ensure their retirement lives.

Diverse and long-term incentives
E.SUN provides all employees with diverse and long-term
incentives to encourage their stay with us; we also encouragethem to create long-term overall performance to facilitate oursustainable development.
Diverse andlong- term
incentives

Banking for Better

Implementation method
Employees are free to make monthly
contributions to purchase the shares of E.SUN
FINANCIAL HOLDING according to personalplans while the company contributes incentive
bonuses thrice each year. The participation
rate has exceeded 90% for three consecutive
years, encouraging employees to hold ourshares for the long term.

Employeeremuneration

Employee remuneration is distributed to
employees in the form of shares to make themthe owner of E.SUN.

Long term
incentive

According to our Long-term Incentive Reward
System, we provide talented employees with
E.SUN Phantom Shares which will be granted
after five years, so as to stimulate their creating
long-term performance.

Seeking for Common Good・Retirement bonuses
・Employee savings
association (employee
stock ownership
Individual
program)savings ・Elder care trust
Labor
insurance
pensionStatutory
pensionThree-pillar retirement protection

Diverse welfare measures
ESUN cares about colleagues, provides diverse and comprehensive welfare measures, and values worklife balance, so as to create a happy second home for employees.
Friendly workplace

Happy family•Quality mentor program•Office spaces focused on safety, comfort, peopleoriented, technologically-smart, and artistic
aesthetics•Multiple working hours, flexible working hours, parttime working option and work from home
•Employee mess hall, parking lot, gym•Creating a diverse and inclusive workplaceenvironment, supporting gender equality andsafeguarding the rights and interests of individuals
with disabilities and indigenous people•Marriage / childbirth subsidies, NT$100,000 in E.SUN
Baby Development Fund
•E.SUN handbook for new mothers, breastfeeding
seminars for expecting mothers•Paid maternity / paternity leave superior to statutory
requirements•Marriage related information forum•Breastfeeding room, pregnancy clothes and child
supplies sharing platform•Employee savings and employee loans

Health initiative

Family care

•Employee Assistance Program (EAP) psychologicalcounseling services•Expanding group insurance coverage scope andimproving protection for employees and theirfamilies against specific risks•Healthy weight loss programs, on-site flu
vaccination stations•Diversified health lectures, health check subsidies•Hiking and cycling around Taiwan•Social club activities (table tennis, badminton,
aerobics classes and so on)•Mother / father's day cards and monetary•E.SUN Choir and Concert for Mothers•Child education subsidies, Outstanding children'saward and E.SUN family care
•Special offers on children's foreign language learning
activities•Chinese New Year accommodation for employees
and spouses•Offer unpaid leave superior to legal requirements•Music concerts (Vienna Boys' Choir, Mayday) andartistic events (E.SUN Awards: artists painting
Yushan (Mt.Jade) for the celebrations for the 30th
anniversary of E.SUN)

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Building Resilience

Mountain Climbing Events Resume,Different Generations Climbing Together
As the COVID-19 pandemic winds down in Taiwan, E.SUN resumed hosting the Mt. Jade climb"E.SUN Peak" starting from the second half of 2022, in order to help employees build stronger
relationship and challenge themselves. The event attracted 339 participants signing up on
the first day of registrations being open. In total, 639 participants signed up for the event,the highest number of participants in the history of the event. 216 of our colleagues actively
participated in the drawing program, allowing our 1st generation employees to re-experiencethe moment of joining E.SUN, the 2nd generation to provide support for each other, and the
3rd generation to take on the leadership spirit. Together, these three generations worked
together to climb Mt. Jade's main peak, promoting physical and mental health, and improving
team cohesion.
In the thin air, climbing steep slopes and testing
our endurance, we were exhausted. However, witheveryone taking care of each other and slowly climbing
step by step, we finally reached Paiyun Lodge, andall our fatigue disappeared, leaving only a senseof accomplishment. One may be able to walk fast,
but team can walk far. In the end, the emotion ofclimbing to the summit of Yushan was unforgettable.
We all left our footprints on the highest Yushan andthe best bank, creating the most beautiful memories
together.
-Manager of Consumer Banking Center

135

Our People

Seeking for Common Good

Consideration for employees' needs to fight the pandemic
Affected by the global COVID-19 pandemic, E.SUN has shown
compassion and protection for our colleagues. Since 2021, E.SUN has
provided fully paid "pandemic-relief care leave" and "vaccination leave" fora certain number of days. As Taiwan moves towards coexisting with thevirus in 2022, E.SUN also offers paid "pandemic-relief quarantine leave" in
response to pandemic prevention needs, with a total salary payout of over
NT$150 million. For our employees stationed abroad, E.SUN has been
providing consolation payments since 2020, with a cumulative payout ofover NT$55 million. In addition, to alleviate the costs related to quarantine
measures for dispatched employees traveling between domestic andinternational borders, E.SUN has provided collective quarantine subsidy,
with a cumulative payout of over NT$7 million. Through various caremeasures, we became a strong backing for our employees.

Our Story

Journey to Net Zero

Banking for Better

Building Resilience

Our People

Seeking for Common Good

5.3 Employee Care and Friendly Workplace Environment
GRI：202-1, 3-3, 403-1, 403-2, 403-3, 403-4, 403-5, 403-6, 403-7, 403-8, 403-9, 403-10

E.SUN endeavors to build a happy and harmonious workplace that embraces
friendliness. We optimize employee health care and workplace safety measures
every year by attaching importance to workplace safety, by implementing hazards
identification, and by assessing risks, so as to reduce potentially hazardous
incidents and concerns. Meanwhile, we provide diverse health promotion activities

and maintain the physical and mental health of employees. By uniting employees
and family members, E.SUN hopes to become the strongest support for furtheringcolleagues' careers, and to become a happy enterprise that feels like a secondhome.

 Occupational health and safety management system
In 2018, E.SUN became the first financial institution in Taiwan to pass theISO45001 certification, which applied to all employees and contractors. We
renewed the certificate in 2021 upon its expiration date. In 2022, we further
passed the TOSHMS certification, and in 2023, the scope of verification
will be extended to the newly established second headquarters building.
Hazards identification and risk assessment are discussed and implemented
jointly by occupational safety personnel and the representative of eachdepartment every year. The operation that was evaluated a high-risk
operation for 2022 was "Commute/Go outside to visit customers". As so,
traffic safety training was given at the on-job occupational safety training inthat year. When an occupational hazard other than a traffic accident occurs,
the occupational safety leader will assemble related personnel and jointly
investigate the occupational hazard, and will propose countermeasures. By
introducing systems and implementing the PDCA method, workplace safety
is improved. The number of occupational injuries during working hours
are effectively controlled, and the frequency and severity rate of disabling
injuries in the past three years has remained stable. This clearly shows that
improvement measures have a positive effect on employee safety.

2018/42022/22023/3

Obtained ISO 45001: 2018
certification2018

Newly obtained certification
Of TOSHMS Note

Expand scope ofverification

Note: Taiwan Occupational Safety and Health Management System (TOSHMS) issued by the
Ministry of Labor

2020

2021

2022

Total work days

2,375,500

2,296,976

2,268,141

Total work hours

19,004,000

18,375,808

18,145,128

GenderMale

Female

Total

Male

Female

Total

Male

Female

Total

12

13

25

11

9

20

10

10

20

Total lost work days due to disabling injury

50.5

164.5

215

59

96

155

63.5

5.5

69

Disabling injury frequency rate (FR)

0.63

0.68

1.31

0.59

0.49

1.08

0.55

0.55

1.10

2

8

11

3

5

8

3

0

3

Total employees with disabling injuries

Disabling injury severity rate (SR)136

Our Story

Journey to Net Zero

Banking for Better Occupational Safety Committee / Consultive
Organization Meeting

In accordance with the "Occupational Safety and Health Act","Regulations Governing Occupational Safety and Health", and otherrelevant regulations, E.SUN has set up a dedicated occupationalsafety unit responsible for formulating and planning safety and healthmatters. The Occupational Safety and Health Committee is composedof 9 members from HR and business units, including the occupationalsafety personnel, department heads, and labor representatives. The
president of E.SUN is the chairman of the Occupational Safety and
Health Committee. The committee holds one meeting every quarter tocommunicate and coordinate the various safety and health issues, andto review the progress and effectiveness of occupational safety actions.
There were two items on the occupational safety improvement plan for2022, namely the installation of safety cages around pool areas andstairway light strips - both were completed. Also occupational safetytargets are embedded in performance appraisal of managers. e.g. healthcheck rate. The E.SUN unit responsible for a project irregularly convenes
a consultive organization meeting with contractors and informs themof E.SUN's occupational safety and health regulations as well as thepotential hazards hidden in the contracted work; contractors may also
submit suggestions respecting safety and health at the meeting.

Building Resilience

Our People

Seeking for Common Good OHS Governance Assessments

To effectively identify occupational risks, improve workplace safety, and promotehealth, E.SUN adopts questionnaires, self-inspection methods, and multidimensional
communication channels in compliance with occupational safety laws and PDCA
management practices to analyze the health risk matrix based on key indicators,
including the results of four major protection plans, job type analysis, operating
environment on-site visits, and health impacts. In addition to continuing to face theimpact of the COVID-19 epidemic in 2022, the assessment focuses on the prevention of
statutory infectious diseases and traffic accidents as high-risk issues. After analysis, themain reasons are due to the nature of the work and the high number of irregular field
trips. As E.SUN employees mostly engage in long periods of static work and female
colleagues are the majority, we remain committed to workplace safety measures andmaternal health protection issues.

Health risk matrix diagram
Low risk
High

Number of holder of valid license

Mental health

Abnormal workload/
Prevent
on of highbloodpressure,cholesterol,blood
sugar levels andnotifiable diseases

294First-aid personnel

330

Fire fighting management personnel

361

Total

985

Road accidents

Maternal HealthProtection

Probability
Human-factor
hazardWorkplace safety/
air quality
Tobacco/betel nuts
hazard prevention

Workplace Violation

Quantity

Occupational health and safety supervisor

High risk
Notifiable disease
prevention

 Occupational Safety and Health Training

To familiarize every E.SUN employee with our safety and healthmanagement mechanism and occupational safety laws and regulations,
we held the 1-hour long occupational safety and health education andtraining through the e-Learning+ platform this year, with the numberof trainees totaling 7,688 people. All operating bases of E.SUN haveat least one licensed occupational health and safety supervisor, one
licensed emergency medical technician, and one licensed fire fighting
management personnel, and the system is used to manage them. These
personnel regularly participate in retraining courses to continuously
improve their occupational safety knowledge and perception, andstrengthen each unit's awareness of and attention to occupational safety.

Moderate risk

Food safety

Low

137

ImpactHigh

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 Measure for workplace safety and healthcare issue
ImpactRisk issues

Controlmeasures2022
implementation
outcomes

High
Notifiable disease prevention

Road accidents

1. General Manager convenes epidemic response team.
2 .Development of epidemic prevention and emergency responseplan.
3. Establish internal reporting mechanism.
4. Implement remote and work-from-home arrangements.
5. Flexible work arrangements for employee allocation.
6. Full pay for pandemic-related quarantine leave.
7. Full pay for COVID-19 vaccination leave (1-3 doses).
8. Providing rapid test kits.
9. Care and on-site support for confirmed cases among employees.
10.Group pandemic insurance.

1. E.SUN provides traffic safety courses for all employees.
2. Employees involved in traffic accidents are required to retake thetraffic safety course.
3. An internal reporting system is established.
4. Individual health situations are monitored, and evaluations are
conducted for employees to return to work based on their conditions.
5. E.SUN reduces non-essential field activities and offers fulltransportation fare subsidies.

1. 5,155 internal notifications in 2022, all employees tracked andcared for, with cases closed.
2. 6,286 quarantine leave applications in 2022.
3. 8,170 vaccination leave applications in 2022.
4. 4,487 employees cared for, 174 employees provided with on-site
support services.
5. 8,007 group pandemic insurance claims, totaling NT$73,863,833.

1. Traffic safety education and training are provided as compulsory
courses, with 7,688 people completing them.
2. After a traffic accident, employees must retake the training. 109 people
have completed this retraining, reducing the repeat accident rate by
1.3%.
3. The number of deaths due to traffic accidents is zero.
4. The number of injury cases is 20.
5. The amount of transportation subsidies provided is NT$115,460,738.

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Banking for Better

Building Resilience

ImpactRisk issues

Controlmeasures2022
implementation
outcomes

Our People

Seeking for Common Good

Moderate
Maternal Health Protection
1. Providing a breastfeeding-friendly environment and equipment.
2. Holding maternal health lectures.
3. Implementing the "Maternal Health Protection Plan".
4. Providing maternity clothes, allowing flat shoes to be worn.
5. Providing E.SUN's Good Pregnancy - Mommy Handbook.

6. Better than legal maternity leave, prenatal leave, paternity leave, andaccompanying prenatal leave.
7. Offering work-from-home, flexible and multiple working hours.
8. Providing re-employment assistance measures.
9. Offer Employee Assistance Program (EAP) psychological counselingservices.

1. Set up simple nursing rooms in branches nationwide.
2. In large financial buildings, nursing rooms are equipped withbottle sterilizers, breast milk refrigerators, bottle cleansers, access
control systems, and dedicated maintenance personnel forincreased safety.
3. Hold a lecture on "Workplace Breastfeeding and Life Adjustment"at the headquarter building.
4. Distribute maternal health protection questionnaires to pregnant
employees, those who have been pregnant for less than one year,
and those who continue breastfeeding for more than one year. In
2022, 121 questionnaires were distributed, with content analyzed
by National Taiwan University physicians. One employee received
a job adjustment, and the rest were determined to have no relevantrisks.

5. Provide maternity wear and send the "E.SUN Pregnancy - Mother's
Handbook" upon request.
6. There were 317 maternity leave applications in 2022.
7. In 2022, 1,279 employees have flexible and multiple working hours.
8. The return rate after childcare leave in 2022 is 91.54%.
9. In collaboration with the Chinese Psychological Therapeutic Researchand Development Foundation, there were a total of 32 psychologicalcounseling consultations in 2022.

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Our Story

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Banking for Better

Building Resilience

ImpactRisk issues

Controlmeasures2022
implementation
outcomes

Our People

Seeking for Common Good

Moderate
Prevention of high blood pressure, high cholesterol, and high blood sugar, and abnormal workload
1. Hosting various health promotion lectures and activities
2. On-site consultation services provided by National Taiwan
University Hospital physicians
3. Implementing four major protection plans
4. Providing paid leave for follow-up medical appointments
5. Medical room equipped with blood pressure monitors

6. Health check-up system exceeding legal requirements
7. Establishing the E.SUN Sports Center
8. Subsidizing various sports clubs

1. Hosting annual sports events, with a total of 216 people participating in the
E.SUN Summit event in 2022.
2. Organizing various health-themed lectures, such as workplace stress relief
and positive communication, healthy eating, and gender mainstreaming,
totaling 7 sessions.
3. Four major protection plans were implemented for a total of 2,117
participants, achieving a 100% completion rate. 64 people were interviewed.
4. E.SUN organized a "Healthy Weight Loss Program," in which 30 participants
collectively lost 95.7 kilograms and reduced their waistlines by a total of
231.5 centimeters, an average of 3.19 kilograms and 7.7 centimeters perperson.
5. E.SUN provided eight on-site consultation sessions with National Taiwan
University physicians every month, and introduced "Webex Video"
consultations. In 2022, a total of 96 sessions were held with 834 participants,
and 90% of satisfaction survey responses were "satisfied" or above.

6. If health check results indicate abnormalities, and an attending
physician from National Taiwan University Hospital recommends afollow-up, E.SUN provides leave for employees to seek treatment.
In 2022, 11 high-risk abnormal health check cases were given
leave for management and follow-up.
7. E.SUN offers better health check allowances and leave than legallyrequired, with 3,302 health check completions in 2022, and a total
subsidy amount of TWD 24,805,629.
8. E.SUN subsidizes various sports clubs, such as table tennis,
badminton, basketball, yoga, and rhythmic clubs.

Health Risk control performance was affirmed by external affirmation

1. E.SUN is the winner of the 2022 National Occupational Safety and Health Award Special Award for Labor Health, the only financial institution to receive this award.
2. Winner of the 2022 Work-Life Balance Award, the only financial holding company
awarded.
3. E.SUN is the first financial institution in Taiwan to be certified for the ISO 45001
Occupational Safety and Health Management System, and passed the TOSHMS
Taiwan Occupational Safety and Health Management System certification in 2022.
4. In 2021, E.SUN was awarded the "Healthy Workplace Award" in the Excellent
Healthy Workplace Selection by the Ministry of Health and Welfare's Health
Promotion Administration for the first time.
5. E.SUN has been certified as a "Healthy Workplace" by the Ministry of Health andWelfare's National Health Administration for the third time.

6. For two consecutive years, E.SUN has participated in the "National Occupational
Safety and Health Week".
7. The Taipei City Government's Department of Labor awarded E.SUN with its first"Gender Equality in the Workplace Index Certification," repeating the honor in 2022.
8. Four large office buildings in Northern Taiwan have passed the "Excellent
Breastfeeding Room Certification" issued by the Taipei City Government HealthBureau.
9. Large office buildings have passed the Taipei City Government Health Bureau's"AED Safe Place Certification."
10.E.SUN was honored with the Sports Administration of the Ministry of Education's"Sports Enterprise Certification" for the third time.

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Building Resilience

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Seeking for Common Good

 Creating a Healthy Workplace

Each year, based on the analysis of employee health check abnormalities and epidemiology
and questionnaire feedback, we further our employee health care measures. The PDCA
circular management structure is used to continuously improve and create a healthy andfriendly workplace.

ACTIONIn the future, we will continue to improve employee
care measures through systematic management
methods and risk analysis of abnormal health checks
become the strongest support for the health ofcolleagues in the workplace.

CHECK
1. Health Check: A total of 3,302 people completed healthchecks, with a subsidy amount of 24,805,629 NTD.
2. Health and Weight Loss Class: Organized 1 class with 30
participants, losing a total of 95.7 kg in weight and 231.5 cm
in waist circumference, with an average weight loss of 3.19 kg
and waist reduction of 7.7 cm per person.
3. Health Lectures: Organized various themed health lectures,such as workplace stress relief and positive communication,
healthy eating, and gender mainstreaming.
4. National Taiwan University Doctor On-site Services: Organized
96 sessions, with 834 participants, and 90% satisfaction ratein the questionnaires.
5. CPR + AED Training Activities: 1,783 participants in 33
sessions.
6. COVID-19 Care for Diagnosed Colleagues: 4,487 people caredfor, with on-site services for 174 people.
7. Long-term Sick Leave Care and Tracking: 31 people.
8. Hypertension, High Blood Sugar, and High Cholesterol
Screening Activities: 163 participants.
9. Four Types of Cancer Screening Activities: 171 participants.
10. Psychological Counseling Services: 32 participants.

A

P

PLAN
Continue to optimize the system and measures;provide health promotion activities that best
address employee needs.

DO

C

D

1. Provide health check subsidies and time limits that aresuperior to statutory requirements, in addition to an
official leave.
2. If an employee has a health check abnormality, theemployee will be offered an official leave for him/her to
do a follow-up consultation.
3. 3-hour On-site consultation services given by NTU
physicians 8 times per month.
4. Organized healthy slimming class activities
5. Organized CPR+AED Training activities
6. Organized health seminars on multiple topics
7. Conducted influenza vaccine administration sessions
8. Care and tracking for colleagues on long-term sickleave
9. Organizing screenings for hypertension, high blood
sugar, high cholesterol, and four types of cancer
10. Providing psychological counseling services forcolleagues (stress management at work)

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5.3.1 Equal Work, Equal Pay; Diverse Communication Channels
GRI: 202-1, 2-23, 2-24, 2-25, 2-30, 405-2, 407-1

3. Sexual harassment prevention

 Gender equality policies
1. Equal remuneration

E.SUN's remuneration policy is based on the duties of employees andcomplies with labor laws and regulations, including the Republic ofChina Labor Standards Act, Act of Gender Equality in Employment, andEmployment Service Act. Salary standards are not differentiated due togender. In 2022, the difference between the annual remuneration of men
and women of the same salary grade in Taiwan was insignificant. The
average monthly salary of general male and female employees in Taiwan
is twice the basic salary of Taiwan.
Female / male remuneration ratio in Taiwan in 2022 ( Female ：Male )Position level

Base salary

Annual remuneration

Executive

99:100100:100

Management level

99:10099:100Non-management

98:10098:100Note1: The male/female remuneration ratio may differ slightly due to the number ofindividuals and personal performance.
Note2: Subjects included in this salary statistics table are full-time employees in Taiwan
who have worked in E.SUN for no less than 1 year.

To provide a safer workplace for employees, E.SUN focuses on workplace equality andgender equality protection, establishing the "Guidelines for the Establishment of Gender
Equality Committee for E.SUN FHC and its Subsidiaries" and "Rules and Procedures
for Sexual Harassment Prevention, Complaint and Punishment of E.SUN FHC and Its
Subsidiaries" to clearly regulate complaint channels, complaint methods, investigation
and review principles and penalties, and has announced the above regulations on theintranet. E.SUN has formulated a Sexual Harassment Complaints Review Committee. The
chairman is Vice President or above, the committee is consisting of 9 committee members,
and the proportion of female members is more than one-half. The investigation of a sexual
harassment complaint incident shall commence within 7 days from the date the complaint
was filed or referral was made to the Complaints Review Committee, and shall be completed
within 2 months. In addition, E.SUN provides various channels for employees to voice theirconcerns and seek assistance when needed:(1) Dedicated sexual harassment complaint channels, including a hotline, fax line, andgender equality complaint mailbox.
(2) The Sexual Harassment Complaints Review Committee conducts investigations basedon objectivity, fairness, and professionalism, and imposes appropriate punishments
according to the evaluation results.
(3) Employee Assistance Programs provide counseling services.
Sexual Harassment Complaint Process
1. The complainant orally/written complains or the company is aware of the situation

2. Embracing Gender Diversity

2. Submitting/Notifying the Sexual Harassment Complaints Review Committee

E.SUN has been long-term dedicated to promoting gender equality
in the workplace, listening to diverse voices and suggestions, andactively supporting and protecting the freedom and rights of same-sex
marriage, to ensure that employees and their same-sex spouses enjoy
the same benefits, and is committed to creating a workplace free of
discrimination. Since same-sex marriage became legalized in Taiwan,
E.SUN has provided benefits and marriage subsidies to same-sex
married employees, along with equal blessings. With the changing trends
in social equality laws, E.SUN keeps pace with the times and implements
Taiwan's national policy on gender equality by setting up gender-friendly
restrooms in each of buildings. These restrooms provide convenient,secure, private, and fair facilities catering to the needs of people ofdiverse genders.

3. Start investigation within 7 days

The investigation will be concluded within 2 months (the investigation
may be extended for 1 month depending on the circumstances)

4. 1. committee meeting resolution

2. The result needs to be agreed by more than half of the members present
3. If the parties need to apply for a reply, they must submit it within 20 days
(only once for the same case)

5. Appropriately punish the perpetrator or the falsely accused complainantaccording to the circumstances

6. Complaint closed (same case shall not file another complaint)

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Building Resilience Employee communication channels

E.SUN has always upheld the importance of paying attention to and listening to the voices of employees.
E.SUN encourages employees to join the trade union and guarantees the freedom of association of
employees; in 2022, the proportion of employees joining the trade union was 14.05%. A total of 4 labormanagement meetings were held to discuss 10 topics, including workdays and holidays, special leave
regulations, overtime procedures, flexible working hours, etc. The above-mentioned labor-managementagreement applies to 100% of all employees, but no group agreement signed. E.SUN established a "CHRO
Mailbox", "Employee opinion reflection/ reporting section" and "E.SUN employees message board" to better
understand the concerns of employees and listen to their suggestions and voices. Including queries andsuggestions respecting diverse issues such as pandemic control measures,personnel system, employee
welfare, leader management.

Our People

Results achieved through diverse communication channels

 2022 Employee engagement survey
Target: All Employees
Purpose：To understand employees' feedback regarding the long-term development of E.SUN
and plan subsequent improvement measures to address important proposals or trends.
Topics：Commitment to organization, career development, remuneration, performance
management, satisfaction with human resource systems, etc.
Response rate：88.4%
Engagement score：84.98%
Survey result：(1) E.SUN communicates organizational development strategies with employees throughknowledge sharing seminars, and sends out surveys afterwards to understand employees'
job satisfaction, identification with the organization, and suggestions.
(2) In 2022, due to interest rate hikes and market fluctuations, profits are not as good asin the past, which will affect some employees' variable compensation. Additionally, theimplementation of the new assessment system has expanded the difference in variable
compensation, and the comprehensive internal and external factors are reflected in the
results of the engagement survey. After the investigation, E.SUN formulated the direction of
improvement and held a company-wide opinion exchange meeting to directly respond tocolleagues' questions.

Seeking for Common Good

Number ofapplications

Communication Channel
CHRO mailbox

20

A special section for employee
opinion reflection Including thementorship mailbox; the reporting
mailbox; and the complaint mailbox
for gender equality issues andworkplace bullying

6

E.SUN employees message board

330

Employee engagement rate
2019

2020

2021

2022

Male

96.79%

95.86%

92.11%

84.55%

Female97.04%

96.31%

93.66%

85.34%

Management

98.88%

98.61%

96.26%

92.86%

Non-Management

95.93%

94.80%

91.50%

81.22%

Under 29-93.90%

90.13%

80.86%

30-50-

97.23%

94.03%

85.95%

Over 51-99.78%

98.85%

96.91%

Total

96.93%

96.10%

92.97%

84.98%

Response rate

87.20%

75.50%

85.20%

88.40%

Improvement measures:Note: In 2020, employee engagement age categories are divided into below 30 years old, 31-50(1) Continue to benchmark the performance system of international benchmark enterprises,
years old, and above 51 years old.
improve the transparency of performance evaluation, and give colleagues instant feedback
Communication, specific feedback and coaching.
(2) Expand the difference in rewards according to job responsibilities and performance, which
can better motivate those who perform well.
(3) In response to the interest rate hike cycle, in order to meet the needs of employees to buy
houses, the interest rate on employee mortgages has been reduced.

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Seeking
Common Good

Taiwan, Formosa, our mostbeautiful home. E.SUN endeavors
to become a world-class corporate
citizen, creating a sustainable
operating environment, starting fromwithin, and combining the strength of
our employees, customers, partners,
and society to invest in ecologicalconservation, academic education,social participation, humanities &
arts, ﬁtness development and otherﬁelds. Hearkening to the voice ofthe environment and society andcontinuing to write the story of thisland.

6.1 Natural Environment andBiodiversity Preservation
6.2 Social Inclusion
6.3 Sustainable Operating
Environment

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6.1 Natural Environment and Biodiversity Preservation GRI：2-23, 2-24, 2-25, 3-3
E.SUN supports the Convention on
Biological Diversity, and promotes
sustainable ecological development tofulfill the United Nation's sustainable
development goals (SDG 13 Climate
Action, SDG 14 Life Below Water,and SDG 15 Life on Land). E.SUN's
sustainable ecological development
strategy comprises of 3 focuses: species
conservation, habitat conservation,and environmental sustainability.
E.SUN believes that actions must startfrom within, and takes the initiative to
respond to environmental engagement
and employee environmental activities
initiatives worldwide and nationwide. In
2022 we joined the Taskforce on Naturerelated Financial Disclosures (TNFD),
further expanding our sustainablefinance assessment to include natureand biodiversity topics, taking action
for Taiwan's natural beauty and a moresustainable world.

 2022 Main Achievements
Species Conservation

Habitat Conservation

Environmental Sustainability• 「Sea Turtle Conservation Project」–
Nursed 46 turtles to health andreleased 10 back to the wild in total
since project began.

• 「E.SUN–NTU ESG Centenary
Project」– Cultivated and planted
10,000 native-species trees trees inpartnership with NTU.

• 「Polar Bear Environmental
Education Project」– 20 events heldwith over 2,200 participants since
project began.

• 「E.SUN Maravi Rice Project」–
Protecting biodiversity throughpromotion of organic farming andindustry transformation, 340 tons oforganic rice have been purchased
since project began.

• 「Earth Hour」– We are the exclusive
assisting organizer for "Earth Hour"that was started by The Society ofWilderness (SOW) and the World
Wildlife Fund (WWF).

• 「Formosan Black Bear Conservation
Project」–73 events held over 11
consecutive years in partnership with
Taipei Zoo.
• 「Xinyi Township Millet Cultivation
Revival Plan」– Started millet
cultivation in Xinyi Township Heshe
Plant Nursery（0.35 ha）and Tungpu
daigaz（0.15 ha）, helping restore
28 disappeared native species.

• 「Plant a tree, Plant a life」– For four
consecutive years, we have worked
with the Forestry Bureau to promote
the national forest and coastal forest
planting project, and have planted
40,000 native tree seedlings.
• 「Beautiful Taiwan, Smiling E.SUN」
environmental cleanup- 6,866
participants in total• Adopting trails in Yushan National
Park– Maintaining around 260 km of
hiking trail facilities and cleanlinessin the park.

145• 「World Car Free Day」– Encouraged
customers to "Live Green" in
response to global initiatives. E.SUN
Easy Card Co-branded card holders
took around 360 thousand YouBike
trips monthly.
• 「Summer Solstice Lights Out」–
In response to the SOW's lights out
event, we volunteered to turn off
signage lights during summer, saving
444,980 kWh of electricity which isequivalent to 226.5 tons of carbon
emissions.
• 「Green Cycling Day」-A cycling
event in collaboration with Discovery,
with 1,000 people riding 24.8 km
across two cities, saving 1.5 tons ofemissions.

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6.1.1 Species Conservation
 Sea Turtle Conservation Project

We collaborated with the National Museum of Marine
Biology and Aquarium (NMMBA) for 4 consecutive years
in the "Taiwan Marine Environment Protection – Sea Turtle
Conservation Project", which is divided into four series:"Injured sea turtle rescue", "Sea Turtle Wildlife Release","Field Trip Education", and "Secret Cape nature tour", withover a thousand participants. A total of 46 turtles weretreated and 10 were released back into the wild over thecourse of the project as well.
The five Sea turtles species that are seen around Taiwan
include Green Turtles, Hawksbill turtles, Olive ridley sea
turtles, Loggerhead turtles, and Leatherback turtle.

The Sea Turtle Conservation Project Series 1:
Injured sea turtle rescue

The Sea Turtle Conservation Project Series 3：

We established the Sea Turtle Medical Station
since 2020. For 3 years in a row, we provided
funds for medical devices/treatment and food sothat injured sea turtles could receive great care.

At the 3rd Taiwan Science Festival jointly
organized by the Ministry of Education and the
National Science and Technology Council (NSTC),
the NMMBA held the "City meets Aquarium"
exhibit at the Tainan Art Museum. The "Marine
Conservation showcase" portion displayed therecent results of E.SUN's collaboration with the
NMMBA, increasing the public's knowledge ofmarine life. 10 elementary schools in the Tainan
area were invited to take field trips to the exhibit
along with E.SUN volunteers, teachers, and 30
students from ShenGong Elementary School under
the E.SUN Golden Seed Project.

The Sea Turtle Conservation Project Series 2：
Sea turtle wildlife releaseWe invited the public to NMMBA's wildlife shelter
to observe the facility and care sea turtles receive.
Staff vets were then arranged to educate thevisitors on how to help rescue a stranded or injured
turtle. After the lesson, they are further invited toparticipate in the turtle release event.

Field Trip Education

The Sea Turtle Conservation Project Series 4：
Secret Cape Nature Tours

Using sea turtles as the central theme, the event
includes learning about the difficulties sea turtles
around the world face, turtle conservation arts andcrafts, viewing the specimen collection at NMMBA,
and in-person observation of work done at the sea
turtle shelter.
Wildlife Released Turtles in the past 4 years：
TurtleSpecies

Year

2022

2021

2020

2019

Green turtle

2

1

1

3

Hawksbill turtle

-

-

-

1

Olive ridley sea
turtle

-

-

-

2

Total

2

1

1

6

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Our People Polar Bear Environmental Education ProjectFebruary 27th is the annual International Polar Bear Day. For three consecutive
years, E.SUN has cooperated with the Museum of Natural Science (NMNS) to
launch a series of polar bear conservation events. Around 2,200 people attended
a total of 20 events, which included two major activities: "Polar Bear Environmental
Education Talks" and "A Snapshot of Polar Bear Life Art Competition". The goal ofthese events is to raise social awareness about the environment and the survivalof polar bears.
Polar Bear Environmental Education Talks
Environmental educators certified by the EPA are invited to give on-site lecturesin schools and communities. In the climate change teaching activity, the lecturer
shares the history of the earth's climate change and leads the students toreflect on the causal relationship between human economic activities and theenvironment. In the storytelling activity, children were given a lively reading of thepicture book "Winston of Churchill – One bear's battle against global warming",
so that they can understand the impact of global warming on the habitat of polar
bears and act in more eco-friendly ways in their daily life.
A Snapshot of Polar Bear Life art competition
Using "From now on, there is one more polar bear" as the theme, we invited thegeneral public to use recyclables such as cardboard and packing material tocreate art displays of polar bears. Through co-creating process, we help children
to cultivate a positive attitude towards ecological conservation and brainstorm
ideas towards slowing global warming through arts and crafts, and building theirecological awareness from a young age. Out of 21 submissions, 6 excellence
awards and 3 people's choice awards were given. The awarded works weredisplayed at the NMNS service center from the 15th to 28th of February, 2022.

"A Snapshot of Polar Bear Life" competition awarded works. Titles :“Lost Hunting Grounds", “A Polar
Bear Searching for its Snowman", “Save the Polar Bears", and “Give Back My Icebergs"

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Polar Bear Environmental Education Talks

Seeking for Common Good

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Seeking for Common Good

 Formosan Black Bear Conservation Project

The Formosan black bear is Taiwan's sole native bear species. The preservation of this species in Taiwan not
only means their survival, but also implies protecting the integrity of Taiwan's forest ecosystems and overallbiodiversity. Since 2012, E.SUN FHC has been working with Taipei Zoo to promote a series of black bearconservation activities. In 2014 we launched the Black Bear Affinity Card and invited our customers to support
the conservation of Taiwan's native species.
Issuance of Taiwan's first credit card combining
conservation and environmental concept—the"Black Bear Affinity Card."

E.SUN Bank worked with Taipei Zoo to issue Taiwan's
first CSR credit card that incorporated environmental
conservation concepts—the "Black Bear Affinity
Card". 0.2% of the transaction amount goes to an
animal conservation fund when using this card. This
fund has totaled NT$10 million in donations to Taipei
Zoo, and has been used for black bear conservation,
habitat protection, restoration of Taiwan's native
species, and environmental education programs.
Customers who use the "Black Bear Affinity Card"
to make donations to Taipei Zoo, Taiwan Black
Bear Conservation Association, Animal Protection
Association of the ROC, and Taiwan Environmental
Information Association also receive triple bonus
points.

The first animal conservation specialty branch in
Taiwan "Black Bear Branch"

E.SUN Bank's Hualien Branch utilizes unique local
features and dedicates its efforts to promoting animal
conservation and biodiversity. Visitors will immediately
see the black bear mascot when they walk into
the branch's lobby, and the waiting area has anaudiovisual section that plays a documentary of E.SUN
caring for bears produced by Yushan National Park
Administration. There is also a black bear knowledge
corner that provides an abundance of information on
the conservation of Formosan black bears. The ATMs
are wrapped in adorable pictures of the bears, inhopes to raise awareness of animal conservation andknowledge in customers and local communities.

 Xinyi Township Millet Cultivation Revival Plan
We helped restore 28 species of millet in Xinyi Township, Nantou
County in collaboration with NTU. Through their professional work,
the millet seeds were brought back from the US germplasm bankand cultivated, starting in Heshe Plant Nursery (0.35 ha) andTungpu daigaz (0.15 ha), thus reviving the millet industry of theaboriginal Bunun people.

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Promotion of Formosan black bear conservation
education

For 11 years, E.SUN and Taipei Zoo have jointly
promoted the conservation of Formosan Black Bears
with 73 events held since. In 2022 we supported the"Night Safari in Taipei Zoo" event. Through activities
such as Zookeeper Story time and BB Keeper's
Talk, people were introduced to the habits andliving environmentof the Formosanblack bear and given
deeper knowledge
on ecologicalconservation.

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6.1.2 Habitat Conservation
 "E.SUN–NTU ESG Centenary Project"

In collaboration with NTU, we will plant native conifers suchas the Taiwan Red Cypress, Formosan Hinoki, Cryptomerialike Taiwania, Taiwan Incense Cedar, and Formosan China-fir in
the Yushan mountain range. 100,000 trees are expected to beplanted within 10 years beginning in 2022, totaling 50 hectares
in area. The forest is expected to absorb 242 thousand tons ofCarbon Dioxide over the course of a century, equivalent to theannual absorption of 617 Daan Forest Parks. After growing andthinning, 25 thousand trees will be kept to grow over a century,
laying the foundation for soil and water conservation, with carbon
sequestration and circular economy benefits. In 2022, there are
11,611 trees which are native species were planted.

 E.SUN Maravi Rice

E.SUN has been supporting the "E.SUN Maravi Rice project" for 9
consecutive years along with Yushan National Park, encouraging
local farmers to adopt organic agriculture for sustainable foodproduction and protect biodiversity. E.SUN acquired 340,000 kg
of Maravi Rice in total and further found extremely rare native fish
Aphyocypris Kikuchii in the paddies.

 "Beautiful Taiwan, Smiling E.SUN"
environmental clean-up activity
We have organized environment cleaning and beach cleanups
under the "Smiling E.SUN" event for 13 consecutive years
since 2010. In support of World Cleanup Day, we organizedstreet cleaning around business locations and beach cleanups
from April 27th to November 19th. We organized a total of 165
cleanups with a total of 6,866 volunteers, taking action to reduce
plastic and waste and protect our beautiful homeland.

 "Plant a tree, Plant a life" E.SUN plant trees project

In order to reduce habitat loss, E.SUN has been jointly promoting the "Plant atree, Plant a life" for 4 consecutive years in collaboration with the Forestry Bureau.
In 2022, the bank as well as coastal forests with a total area of 26.13 hectares.
Planting 10,005 saplings of native tree species, including Formosan Ash, Blue
Japanese Oak, Formosan Sweet Gum, Formosa Acacia, Red Nanmu, Mori Cleyera,
and Taiwan Gordonia, totaling over 40,000 trees planted from 2019 to 2022.
In March and October of 2022, E.SUN Management team led E.SUN volunteers toplant trees in national forest site in Keelung City and costal forest site in New Taipei
City, putting in our effort for the environment and enriching local biodiversity.
"E.SUN Visa Signature", Taiwan's first charitable card with an emphasis onenvironmental awarenessIn 2009, E.SUN Bank introduced the first charitable credit card with an emphasison environmental awareness, the E.SUN Visa Signature card. We continue to invite
cardholders to participate in the " Plant a tree, Plant a life " project, and feedback
to this land through tree planting. We encourage Visa card members to apply forelectronic bills or mobile bills, and donate 0.2% of each transaction amount for tree
planting programs. We've planted 40,000 trees under this project.
Adopting Bus Stops to Communicate the Importance of Protecting Nature
We adopted Hutienqiao Bus Stop near the forestation site of " Plant a tree, Plant
a life " project for 3 consecutive years. The unique design of green leaves and anadorable Formosan black bear symbolizes life and growth in nature, while also
showing E.SUN's efforts to restore the Formosan black bear and plant trees forthe planet. More importantly, we hope that the interesting design will allow parents
and children who visit this place to check in and take photos and also cherish thenatural environment!

 Adopting trails in Yushan National Park

We have adopted and maintained 260km of trails in Yushan
National Park trail for 14 consecutive years. We use thisopportunity to promote conservation and environmental education,and encourage E.SUN employees to participate and work together
to protect the environment.

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6.1.3 Environmental Sustainability Initiatives GRI G4 Financial Services Sector：FS4
 Earth Hour

For 11 consecutive years, E.SUN has responded to the Earth
Hour environmental conservation activity initiated by The
Society of Wilderness (SOW) and the World Wildlife Fund (WWF),and has moreover been the main assisting organizer in Taiwan
for four consecutive years starting from 2019. In 2022, fromMarch 25th to 27th, E.SUN took part in this activity by turning
off signboard power at all domestic and overseas branches.
Customers, employees and suppliers were also invited torespond by turning off their lights for one hour through ATMs
displays, the E.SUN official website, the E.SUN Lucky Cats
Facebook fan page, and branch posters. E.SUN also sponsored"What! Climate Change is Real" lectures 11 times on climatechange, eco-friendly eating, and energy conservation to draw
public attention to climate change and teach different aspectsof green living in hopes for more action for a sustainable
environment.

 Green Cycling Day

We partnered with Discovery to launch Green Cycling Day, gathering 1,000
participants to ride 24.8km across Taipei and New Taipei City. Starting from
Jiangzicui Riverside Park, passing Shezi Daotou Park, and arriving at Dajia
Riverside Park, saving 1.5 tons of emissions along the way. At the finish we helda green fair event with music
performances, Eco-tribe bazaar,
and a green marketplace. In the
Eco-tribe bazaar, second-hand
items were sold to promote item
reuse; the green marketplace
included green vendors,
repurposing crafts, and bicycle
food stalls to further promote
green living.

 World Car Free Day

We've participated in World Car Free Day for 13 consecutive
years. In 2022, we partnered with YouBike to promote lowcarbon transportation, such as walking and taking masstransportation, to our customers and employees, cutting ourcollective carbon footprint and protecting the Earth. Around36 thousand YouBike trips per month are taken by E.SUN
cardholders.

 Summer Solstice Lights Out

We participated in the "Summer Solstice Lights out " event
started by The Society of Wilderness, turning off lights during
summer when electricity consumption is at its peak for 6
consecutive years. Lights were turned off for 100 days for the
first 4 years. After realizing the urgency of energy conservationin 2021, we started the event earlier and extended to turning
off lights for 130 days from July 1st to November 7th, with all
139 branches around Taiwan participating. We saved a total of
444,980 kWh over 6 years, which is equal to reducing carbon
emissions by 226.5 tons.

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6.1.4 Employee Environmental Activities
 "E.SUN Environment and Energy Saving Education
Day" on the 13th of every month

Environmental volunteers of each department promotes knowledge ofenvironmental protection on the 13th of every month and educational material isregularly displayed on our e-Learning platform. Also, the13th day of every monthis also cleaning day, where employees would clean the office environment to put
the 4R concept- Reduce, Reuse, Recycle, and Refuse into practice.

 Resource Circulation and Charity Sale

For 11 years in a row, we have held the "Resource Conservation Charity Sales
Event", which includes a silent auction for second-hand and brand new items
to help squeeze more out of existing resources. In 2022, over 4,500 volunteers
and colleagues who participated in the event donated a total of 7,829 brand new
and second-hand items. In addition, all proceeds from the charity events were
donated to the "Care for Schoolchildren Program". In 2022, the charity event
raised over NT$8 million, directly helping cover the first semester costs of morethan 3,500 elementary school students. Part of the money was also invested inthe "E.SUN Family Care and Outstanding Children Award" for the care of E.SUN
employees and their families.

 13-Book Lovers: Magazine circulation day

In order to realize E.SUN's environmental protection spirit, the "13-Book Lovers:
Magazine circulation day activity" has been held at E.SUN Headquarter buildings.
In order to effectively achieve the goal of resource sharing, we collectedmagazines that various departments had subscribed to (or had received as
donations), along with employees' own books, magazines, CDs, and DVDs, whichwere made freely available to all employees. We collected a total of 2,714 items
in 2022, and circulated 1,580 items, for a circulation rate of 58.21%.

 E.SUN Vegetarian Day on Mondays

Vegetarian meals are served every Mondays in the employee canteen. This not
only encourages employees to consume less meat and eat more vegetables
but also reduces the production of carbon dioxide from the animal husbandry
industry. This effort has been supported by about 1,361 E.SUN employees every
week, reducing carbon emissions by roughly 49.97 tons CO2e. （Note: Switching
to a vegetarian diet saves 780g CO2e of carbon emissions per person according
to the EPA）

151

Month

2022 Environment Education Topics

JanuaryLess-Plastic Living

February

International Polar Bear Day

MarchLess Plastic for Our Oceans

April

Creating a Green Living Space – Green Buildings

May

Taiwan's 2050 Net-zero Pathway

June

Storage Trends Under Energy Transition

July

The Trash Crisis Under the Pandemic

AugustExamining the impact of the international situation on "climate"from the Russian-Ukrainian War

September

Hydrogen Economy

October"Bring-along, Reuse, Reduce" the movement for low plastic living

November

COP27 United Nations Climate Change Conference

DecemberWater and Energy, Inseparable Duo6.2 Social Inclusion GRI: 203-1, 203-2, 413-1; GRI G4 Financial Services Sector Disclosure: FS7
Seeing E.SUN, Seeing Taiwan

E.SUN Awards- Beyond Borders and Ethnicities, Promoting True Beauty through FinanceWith a deep love for our homeland, celebrating 30th anniversary by conveying the beauty of Mt. Jade through the brushwork of artists.
72 participating countries, breaking throughthe pandemic and transcending borders withartistic communication
In everyone's heart, there is a Mt. Jade. What does
Mt. Jade in your heart look like? Is it full of blooming
azaleas, surrounded by clouds and seas, or is it aswhite as jade? As E.SUN turns 30, we cherish theland of Taiwan and organize the ' E.SUN Awards 'event, with categories such as 'General Public Group','Student Group', and 'Foreigner Group'. A total of 2,202
artworks were submitted, including 72 countries fromfive continents. After careful selection, 27 outstanding
award-winning works were chosen for a touring
exhibition. Through the creativity and brushwork ofartists, we not only see the impressions of Mt. Jadein the eyes of Taiwanese and foreign artists, but also
let this symbol of Taiwan's spirit reach new heights,
breaking through the barriers of cross-border movement
during the pandemic and bringing new hope to thepost-pandemic world.

Encouraging cultural and artistic creation,
promoting true beauty through ﬁnance
The Social Group's first prize went to Shian-Wen Hu's
work 'Worship', which realistically portrays a young
girl's aspirations, symbolizing her determination toreach the peak of her life despite hardships. The
Student Group's first prize was awarded to Pin-Si
Lin, a student at Tsinghua University, for her work
' You and the Beauty You Don't Even Know', which
depicts the unique flora and fauna nurtured by Mt.
Jade, such as Taiwan Alpine Rhododendron, SingleSeed Juniper, Formosan Sambar Deer, and Formosan
Salamander, highlighting the protective image of Mt.
Jade's abundant life force. Hai-Hui Wang from New
Zealand, whose work 'TheTreasures of Yushan' uses a
jewelry box filled with precious gems as its theme, with
Mt. Jade being the precious jade treasure stored within,holding valuable history, memories, and wealth, won
the Foreigner Group's first prize. Mt. Jade, the highest
mountain in Taiwan, is fresh, magnificent, and mostbeautiful. In the E.SUN Awards' works,152

we see the beauty of Taiwan's land, infused withthe artists' emotions, knowledge, and creativity.
The diversity of Mt. Jade's natural landscape andthe vitality of Taiwan's native flora and fauna are
the focus of many works. E.SUN Bank has long
been committed to art, culture, and music, striving
to make Taiwan even better. Through the 'E.SUN
Awards' event, we not only provide assistance andopportunities for artists' creations but also encourageartistic talents to continue moving forward. We
also hope to raise awareness of the protection ofnatural ecosystems and the appreciation of Taiwan's
rich natural resources through art, contributing tosustainable development and making the world abetter place.

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6.2.1 Social Inclusion Strategy“E.SUN people become world-class citizens; E.SUN Bank becomes a world-class corporate citizen”
E.SUN Financial Holding Company responds to the United Nations Sustainable Development
Goals (SDGs) and the National Sustainable Development Committee of the Executive Yuan's'Taiwan Sustainable Development Goals' by identifying, prioritizing, selecting appropriate
goals, and initiating actions. E.SUN starts from corporate strategic direction and corebusiness operations, identifying the highest relevance, including 'Quality Education' andother 8 items. Furthermore, according to the 'Taiwan Sustainable Development Goals', E.SUN
discloses relevant results based on corresponding goals, supporting national sustainable
development and actively practicing corporate social responsibility.
Key Response Targets

Identify the priority order of SDGs

Business Drive

Measures and performance
evaluation

Reporting, integration,
and action

Stakeholder Engagement

4 Quality Education

Talent is a leading indicator and a key indicator. E.SUN believes that if a company wants to achievesustainable operation and a country's future to be filled with competitiveness, the most important
thing is talent cultivation. From rural primary schools, higher education, to corporate learning, E.SUN
supported the improvement of education quality through practical actions. We launched the Golden
Seed Project to build libraries for resource-poor primary schools, improving reading environments;
through industry-academia cooperation, campus competitions, and cultivating outstanding talentscholarships, we support key talents in various fields in Taiwan, enriching the nation's intellectual
capital; by combining the strength of top universities in Taiwan, we issue the E.SUN Academic
Award, affirming professors' research achievements published in top academic journals, andcultivating more outstanding scholars and excellent students; organizing international master forums,
introducing international top strategic, marketing, and management knowledge, and jointly stimulating
innovative thinking with Taiwanese enterprises, finding new paths for growth and enhancing Taiwan's
competitiveness.

Since there were no large-scale library renovation projects
for rural schools by private enterprises in Taiwan before thisproject, E.SUN did not have references to follow. However, thedetermination to create libraries for rural primary schools was
so strong that we discussed with children's reading education
experts, school teachers and principals, and design companies
to create a suitable library structure for children. After thecompletion of the E.SUN Library, E.SUN continues to exchange
opinions with schools, regularly visit the site for understanding,maintenance, repair, and renewal, allowing teachers andstudents to make better use of the library, and making every new
library better in the future.

8 Create Decent
Work andEconomic Growth

Banking is not only a credit business for managing financial risks, a service business for meetingcustomer needs, but also an innovative business leading social development and a public businesspursuing economic benefits. E.SUN actively develops financial technology, assists small and mediumsized enterprises in obtaining capital and transformation, and brings new momentum to economic
growth. While pursuing external development, we also focus on internal stability. E.SUN values
employee training and protection. We believe that employees are the most important assets of acompany. With a comprehensive career blueprint and welfare system, we create a good working
environment and hope to become a second home where employees are happy and united.

E.SUN has long-term cooperation with government resources,
vigorously promoting the 'SME Credit Guarantee Fund'
guarantee financing business, and also working with government
agencies to develop policies, assisting SMEs in obtaining crucial
operating funds. In addition, E.SUN actively explores high-quality
potential enterprises, through interviews, in-depth investigations,and sharing successful experiences, guiding enterprises toparticipate in national-level awards, improving the quality ofenterprise operations, and assisting in growth transformation.

3 Health and Wellbeing Good healthand well-being

Health is the foundation of happiness and the key to the sustainable operation of nations andenterprises. With the aging trend in Taiwan, the demand for medical resources is growing, and medical
personnel are beginning to face a shortage of manpower. E.SUN not only donates medical supplies
and initiates blood donation activities but also collaborates with academic institutions to cultivate thenursing talents needed by society, enhancing Taiwan's social health care capacity. At the same time,
E.SUN also leverages its experience in developing financial technology to assist hospitals in digitaltransformation and provide customer service courses, making it easier for the public to access highquality medical services and resources. On the other hand, E.SUN regularly cooperates with hospitals
to hold free medical consultation activities and home medical services, helping more patients withmobility difficulties or living in remote areas to receive proper medical care and maintain a healthy
life. E.SUN continues to invest in the health and medical fields, combining more cross-border forces,
hoping to create a healthier and better society together.

In the home dental care service project, E.SUN cooperates with
the National Association of Dentists of the Republic of China,
actively communicates with dentists, and assists in providing
resources needed for remote consultation, home medical
services, etc. At the same time, through remote schools andpatient feedback, more volunteer manpower is mobilized, andsuitable equipment is donated to help dentists go deep into
remote areas, improve mobile medical capabilities, and allow
remote residents to receive better oral care and health.

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6.2.2 Academic Education
Focusing on English Education in Rural Areas: Encouraging Students to Speak English
In response to the wave of globalization and thegovernment's 2030 bilingual national policy, E.SUN
aims to enable children to read English from anearly age, allowing them to explore a broader world,
understand the thoughts and concepts hidden behind
another language and text, and experience diverse
cultural perspectives. This will help children become
global citizens with a global vision.
We target resource-poor, remote areas and nonurban schools to transform their libraries. In addition toproviding a good reading environment, we continuously
consider how to exert a greater impact and change
the challenges faced by rural areas. During our visits
to libraries, conversations with principals revealed the
difficulties rural students face in learning English. We
found that 80% of fifth-grade students in one school
were unable to write the 26 English letters, let alone
possess listening, speaking, reading, and writing skills.
English proficiency deeply affects children's academic

learning and future development. E.SUN strives tocreate a high-quality English learning environment forrural children, building a bridge for them to explore theworld.
In recent years, we have continuously introduced
high-quality bilingual children's books, purchased
English books, provided digital online reading tools
and resources, and cultivated E.SUN volunteers'
professional learning opportunities. We also visit
E.SUN libraries to tell stories and accompany children
in learning English. Furthermore, to systematically
implement this project, E.SUN collaborates with
Dunhuang Bookstore, Professor Chen Chaoming,and the International Talent Development Association
to carry out the 'English Hand-in-Hand Project' andthe 'English Reading Companion Project,' recruiting
passionate teachers and college students to teachEnglish in rural areas. Our goal is to change children's
worlds through English and reading, immerse them in154

a reading environment, enjoy learning, develop English
learning abilities, and enrich the future competitivenessof disadvantaged students, planting seeds ofknowledge that will grow into Taiwan's future hope.
To date, 152 angel teachers and college students havejoined E.SUN's rural English project, serving more than
2,700 students in 31 schools. Teachers and college
students use students' after-school or early self-study
time to visit schools and provide English guidance,
dividing classes according to different age groups andabilities, using fun and engaging methods to motivate
children to learn, and recognizing words, sentence
patterns, and simple conversations through games,
building confidence and laying a solid foundation for
future English challenges. In addition, through E.SUN
volunteers' self-planning, participation in project
meetings, and school visits, they not only give back tosociety but also learn gratitude, compassion, and selfrealization.

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Seeking for Common Good

Item

Content

Achievement

EnglishHand-inHand Project

Since the project's launch in 2019, starting from resource-poor Jiayi County and Yunlin
County, we have invited English teachers to provide after-school guidance in rural primaryschools. To further expand teaching capacity, we collaborated with the Taiwan International
Talent Development Association in 2022, adopting the concept of 'home tutoring for ruralchildren,' allowing college students to accompany children in learning English and jointly
striving to create a better English learning environment.

． In 2022, more college students joined the teaching team, serving areas in
Keelung City and New Taipei City.
． A total of 163 classes have been set up, benefiting 2,734 rural students inlearning English with an open heart.

E.SUN
Golden Seed
Project

Since 2007, combining the efforts of E.SUN, its employees, and clients, we have donated a
portion of the annual fees from E.SUN World Cards and domestic card transaction amounts
to establish E.SUN libraries in rural or resource-poor areas, continuously sowing the seeds ofknowledge.

． In 2022, 6 new E.SUN libraries were added, providing better reading
environments for children and residents in rural areas.
． Over 200,000 World Card holders have participated, completing a totalof 173 E.SUN libraries, donating 450,000 books, 108 book sterilization
machines, and benefiting over 115,000 children.

E.SUN
AcademicAward

To encourage top-notch academic research and promote domestic management researchand international connections, the E.SUN Academic Award was established in 2010,
rewarding professors who have published papers in the TOP3 international leading journals
in different management fields.

． In collaboration with National Taiwan University, National Chengchi
University, National Tsing Hua University, National Chiao Tung University,and 11 other benchmark universities' business schools, the E.SUN Academic
Award has been established, with a total of 68 teachers receiving the award.

Climb a Story
Mountain
Reading
Promotion
Project

Since 2019, to cultivate more reading promoters who enjoy storytelling, the 'Climb a Story
Mountain' reading promotion project has been launched, including publishing 'Taiwan
Original Picture Book Stories', organizing 'Storytelling Volunteer Training Courses', 'Story
Travel Box Workshops', and 'Storytelling Reading Promotion Services - Visiting E.SUN
Libraries'.

． In 2022, 2 new Taiwan original picture book stories were published, with2,000 copies printed, and the first 13 episodes of the Podcast 'Travel with
Stories' were recorded.
． Cumulatively published 18 original Taiwanese picture books, printed 16,000
copies, held 217 storytelling workshops, picture book travel box workshops,
and reading activities, benefiting 6,890 participants.

Picture bookcreationworkshopSince 2017, E.SUN has encouraged students to create picture books, promoting thecontinuation of picture book education. E.SUN supports the National Public Information
Library's 'Dream Picture Book Database', collecting student-created picture books andorganizing 'Picture Book Creation Workshops' to inspire and facilitate communication.

． In 2022, 85 new original picture books were collected, with 320 teachers andthe public participating in the picture book creation workshops.
． Cumulatively collected 1,323 original picture books, with 750 teachers andthe public participating in the picture book creation workshops.

Kehua
Online Digital
Reading
Research
Competition

To cultivate students' digital reading, collaborative learning, and research skills, E.SUN has
supported the Taiwan Reading Culture Foundation's 'Kehua Online Digital Reading ResearchCompetition' since 2020, encouraging students from grades 4 to 9 in public and private
schools across Taiwan to participate and achieve self-directed learning goals.

． In 2022, 651 student teams from elementary and junior high schools acrossTaiwan participated, with 2,368 students registering.
． Cumulatively, 1,732 student teams from elementary and junior high schools
across Taiwan participated, with 6,288 students registering.

E.SUN
Artificial
Intelligence
Open
Challenge

E.SUN is committed to financial technology innovation and has been organizing the AI
Talent Competition since 2019, attracting outstanding talents interested in the AI field.
Through continuous competitions and exchange platforms, more AI talents are cultivated in
Taiwan. This year's competition theme is 'Suspicious or Not? - Predicting Suspicious Money
Laundering Transactions', aiming to accurately identify suspicious transactions through theapplication of artificial intelligence technology and professional experience, contributing to awell-regulated and healthy financial environment in Taiwan.

． In the 2022 Winter Competition, 684 teams with a total of 1,250 participants
have registered.
． By the end of 2022, a total of 8 AI Open Challenges have been held,
attracting 6,327 teams and over 10,000 participants.

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6.2.3 Social Participation
 Donating medicine delivery vests to support
pharmacists in safeguarding public health
E.SUN Bank has long been dedicated to medical public welfare
activities, continuously delivering love and care to those in needby collaborating with various sectors. In response to the national
pharmacists' efforts in implementing real-name registration for masks,
rapid screening, home delivery of medicines for mild patients, anddrug education, E.SUN donated public welfare vests to enhance therecognition, cooperation, and support of remote residents towards
pharmacists. When pharmacists wear vests with the 'Medicine Delivery
Pioneer' LOGO, they can deliver medicines more efficiently, convey
the concept of safe and correct medication, ensure public health, andjointly solve the problem of obtaining medicines for residents in remoteareas with inconvenient transportation.
E.SUN also cooperates with the National Association of Chinese
Pharmacists and the National Association of Pharmaceutical Students
to issue exclusive 'E.SUN Pharmacist Infinite Cards' and 'E.SUN
Pharmacist Royal Cards', providing financial services that honor
pharmacists nationwide and expressing gratitude for their hard work.

 Changing the future with love - E.SUN's careprogram for disadvantaged children andadolescentsChildren are the hope of the nation's future, and ensuring their happylearning and healthy growth is the common expectation of every parent
and E.SUN employee. To cultivate children's correct values and carefor the growth of young people, E.SUN invests in anti-drug educationand child care, ranging from grassroot education to convey anti-drugknowledge, support for disadvantaged youth families, rectificationof school counseling rooms. By combining the efforts of E.SUN andexternal partners, we jointly protect the future of the next generation.

Building Resilience

Our People

Seeking for Common Good

Anti-drug education to eradicate the root

E.SUN cooperates with the National Education Agency and Kaohsiung City Education Bureau
to set up an "Anti-drug Education Mobile Vehicle" and train E.SUN volunteers to become antidrug education seeds. When the mobile vehicle visits various schools, E.SUN volunteers
will use the anti-drug experiential games, anti-drug comics, simulated drugs, and anti-drugteaching aids in the vehicle to convey anti-drug knowledge. The anti-drug mobile vehicle
operates in Kaohsiung's elementary, junior high, and high schools, and also reaches remoteschools, helping students to recognize drugs, refuse drugs, protect themselves, and stayaway from danger. From September to December 2022, it visited 23 venues, benefiting morethan 5,000 people.

Support services for disadvantaged youth families - building a bridge for youth toreturn home
According to domestic and international research, the factors causing children's deviant
behavior are mostly rooted in family factors. Unhealthy family structures lead to a lack of
security in children's lives, resulting in deviant behavior and maladjustment in daily life andschool. To deeply care for disadvantaged children, E.SUN Financial Holding Company
donates special project funds to support the Ministry of Health and Welfare and related
units to jointly promote "Support Services for Disadvantaged Youth Families", providing
companionship and support services for the families of young people entering corrective
schools. The project transforms family support services from after leaving school into as soon
as the delinquents enter school, helping these disadvantaged young people return to theirfamilies and society, and find the right direction in life.

 E.SUN Disadvantaged Children's Counseling and Guidance
Room

In order to provide disadvantaged children with comprehensive guidance resources, E.SUN
Financial Holding Company also assists corrective schools in creating a more friendly andcomfortable counseling space. The first "E.SUN Disadvantaged Children's Counseling andGuidance Room", jointly designed by domestic psychological counseling and spatial design
experts, has been completed at Xinzhu Zhengzheng Junior High School. Zhengzheng JuniorHigh School is a corrective school that provides juvenile delinquency education. Many
students in the school have strayed due to mistakes at one time. E.SUN assists Zhengzheng
Junior High School in creating a more friendly and comfortable counseling space, creating a
different environment from the original cold and constrained space, allowing students to open
their hearts to face their own problems in a trusting, unyielding, and secure environment, andengage in individual psychological therapy, counseling, and guidance.

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Content

Achievement

E.SUN Cultivating
Outstanding Talent
Scholarship

To cultivate the key forces for the nation's future, E.SUN has successively
established the "E.SUN Cultivating Outstanding Talent Scholarship","E.SUN Cultivating ASEAN Talent Scholarship" since 2005, and in
response to the increasing demand for medical treatment and care in
the aging society, the "E.SUN Cultivating Nursing Talent Scholarship"
was newly established in 2020, to practically cultivate the key forces for
Taiwan's future.

In 2022, 36 students from different fields were awarded scholarships, including
21 outstanding talents, 7 ASEAN talents, and 8 nursing talents. As of 2022, a
total of 244 students have been awarded scholarships.

Caring for Students Project

The Caring for Students Project was launched in 2012, providing longterm assistance to students facing economic difficulties or suddenchanges in their lives. It allows them to focus on their studies withoutworrying about financial burdens, and alleviates the pressure on theirfamilies' educational expenses. Each student in primary school receives
2,000 TWD per semester, which can be used for tuition fees, textbooks,
extracurricular education, after-school tutoring, or other related
expenses.

Over the past 3 years, a total of 36,101 students have been assisted, with a
total donation amount of 72.2 million TWD.

E.SUN Maravi Rice Project

Since 2014, E.SUN has continuously supported the 'E.SUN Maravi Rice'project for 9 years, starting from the first paddy field at the foot of Mt.
Jade. The project encourages local farmers to engage in sustainable
farming practices while protecting biodiversity.

A total of 340,000 kg of rice has been purchased, not only sharing 'E.SUN
Maravi Rice' with employees and important clients, but also fully adopting it in
E.SUN's employee cafeteria.

A Single Act of Love Can
Inspire More Love - Blood
Donation

To help alleviate blood shortages and assist more people in need, E.SUN
and E.SUN Volunteers Foundation have jointly organized blood donation
events for 23 consecutive years. These events are held annually during
the peak blood shortage period in the winter and summer vacation time.

In 2022, blood donation events were jointly organized with doctors, dentists,
Chinese medicine practitioners, architects, accountants, and lawyers, as wellas the Nan Shan Life Insurance Company. A total of 5,172 blood donors andvolunteers participated, collecting 7,712 bags of blood.

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6.2.4 Humanities and Arts

Place

Seeking for Common Good

held by domestic and foreign performing groups, cultural organizations, or artists;
participating in film, music creation, premiere performances, etc.; and evenencouraging E.SUN employees and their families to enter theaters and museums toexperience diverse cultural and artistic activities in a tangible way, hoping to attract
more customers to respond to and invest in cultural and artistic activities and support
local cultural development.

In order to promote the support of listed companies for cultural development, theMinistry of Culture, the Financial Supervisory Commission, and the Taiwan Stock
Exchange jointly established the "Enterprise Promotion of Cultural Development" in
February 2023, which was clearly included in the scope of sustainable development
practices in our country. E.SUN has long been committed to the development of
humanities and arts, including supporting the expenses of exhibitions or activities
Item

Our People

Content

Achievement

E.SUN's 30th
Anniversary
Painting
Competition

E.SUN
Bank

Entering its fourth decade, E.SUN continues to convey the spirit of joy and carefor the arts. In 2022, the third "Painting E.SUN" event was held, showcasing thebeauty and vitality of E.SUN through the creativity and touching brushstrokesof artists, hoping to exert a positive impact and bring a better future to thissociety and land.

． This time, a total of 2,202 works were submitted by passionate artists and young
students from home and abroad (1,572 from the social group, 275 from the student
group, and 355 from the international group).
． The judging committee, composed of art experts and scholars, carefully selected thewinners, awarding one first prize, three special prizes, and five excellent prizes foreach of the international, student, and social groups, with a total prize money of NT$1
million to NT$100,000.

Light andEasy Theater

National
Theater &ConcertHall,
TaipeiE.SUN collaborates with the National Theater & Concert Hall to promote
integrated services, providing an artistic appreciation environment thatis inclusive and accommodating for audiences who cannot attend formal
performances. E.SUN will also select suitable programs and invite school
teachers and students from E.SUN libraries to enjoy performances at the
National Theater & Concert Hall, and assist in arranging related guided tours,
transportation, accommodation, dining, etc., hoping to give children in remoteareas the opportunity to be touched by music.

． Title sponsorship in 5 performances, including the experimental field of new particles"Lin Lu-chieh: Role Play", "Beyond Splash: Organ Concert", "Summer Knight Music
Festival: Good Times", "Shu Man Husband and Wife Hello" parent-child storytelling,and "Three-person Dance: Magic Pipe Organs", benefiting 1,953 people.
． The invited audience for public welfare performances includes E.SUN Library schools,
elderly friends, and various groups with different physical needs and conditions,creating a friendly and diverse audience space, with a total of 421 participants.

Art Into theTheaterTaichung
National
Opera
House

Since the collaboration with Taichung National Opera House in 2019, the2022 theme is "Dance Chapter", inviting school teachers and students toenjoy the dance work "Alice" performed by the elite dance production team,and providing pre-event teaching materials, guided tours of the opera house,
theater etiquette, etc. for schools to learn before the event.

． In 2022, 600 students from 7 schools in Chiayi County and Miaoli County were invited
to participate in the Taichung National Opera House.

Theater Art
Experience
Education
Program

Kaohsiung
Wei WuYing
National
Arts and
CultureCenterCommitted to improving the artistic and cultural environment in southern
Taiwan, cooperating with Wei Wu Ying to launch a program designed forstudents and in line with school curriculum, allowing students to cultivate theirappreciation for arts and aesthetics through experience. The drama reading
conference allows students to deeply experience the process and interest ofdrama production through professional training by teachers, and perform on
stage at the end of the semester.

． Invited 23 schools to participate in the experiential course, with a total of 751
participants.
． A total of 1,109 participants experienced the drama reading conference.

Taiwanese
Composer
SeriesKaohsiung
Wei WuYing
National
Arts and
CultureCenterE.SUN focuses on the development of Taiwan's local art and culture,collaborating with Wei-Wu-Ying National Arts and Culture Center and National
Traditional Arts Center's Taiwan Music Institute to hold exhibition and concert
and commemorate the 30th anniversary of passed composer and educator
Chen Su-Ti, known as Taiwan's first pianist, founder of the first women's musiccollege in Taiwan's education system, and creator of Taiwan's first choir andpiano music compositions.

． A total of 5,855 people attended the commemorative exhibition and concert.

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Place

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Our People

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Content

Achievement

Artwork
Collection
Restoration
Project

Tainan City Art Museum

Since 2020, E.SUN has supported the Artwork Collection Restoration Project of the Art with Science
Research Center, preserving and maintaining precious cultural assets through long-term support
for artwork restoration, and continuing the cultural heritage.
Through the award-winning documentary filmed by the director of the Golden Horse Awards, thepublic can understand the efforts behind the preservation and restoration of artworks, raising moreawareness and concern for the preservation of cultural relics and historical culture.

． The restoration results have been successively
displayed in the 'Newly Acquired Collection
Exhibition - Ho Jin-Shui 'Refugee Series' Sculpture
Works', 'SHERO - Taiwanese Contemporary
Female Art Exhibition', and 'Artwork Diagnosis:
The Art and Restoration of Wong Kun-De'.

E.SUN's
Mission:
Advancing to
Taiwan History
MuseumNational Taiwan History
MuseumTo promote and preserve Taiwan's history and culture, E.SUN collaborates with the National Taiwan
History Museum for the 'E.SUN's Mission: Advancing to Taiwan History Museum' event. Inviting 7
schools from Tainan and Kaohsiung, with 600 teachers and students to participate in the event at
the National Taiwan History Museum. The activities include pre-visit lesson plans, E.SUN's mission
games on the day of the event, and post-visit extended learning and sharing, allowing children toeasily understand Taiwan's historical culture and increase their knowledge of Taiwan's history.

． 600 teachers and students

E.SUN Music
Feast - Vienna
Philharmonic
Orchestra

National Concert Hall,
TaipeiFounded in 1842, the Vienna Philharmonic Orchestra is renowned for its pure German-Austrian styleand exquisite sound. It is not only one of the world's top orchestras but also a symbol of European
musical culture. E.SUN has long supported high-quality art and cultural activities, and to continue
showcasing E.SUN's brand characteristics and spirit, the world-class classical orchestra, Vienna
Philharmonic Orchestra, is invited to perform in Taiwan. It is hoped that classical music enthusiasts
in Taiwan can enjoy a close-up performance by a world-class orchestra and experience anincomparable music feast.

． 2,000 attendees

E.SUN Music
Feast - Prague
Philharmonia． National Concert Hall,
Taipei． National Taichung
Theater． Kaohsiung Wei Wu Ying
National Center for theArts - Concert Hall

The Prague Philharmonic Orchestra was founded in 1994 and is led by conductor Kirill Belevich,
who has won the prestigious Glinka Music Award. The orchestra is a classic representative of
the Viennese classical music style, featuring works by Haydn, Mozart, and Beethoven as theirperformance highlights. They hope to share Prague's music and culture with friends in Taiwan,
especially during the challenging times of the pandemic, showcasing the power of top-notchorchestras and providing a healing and uplifting experience for the audience.

． 4,800 attendees

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Di
tisticLiu Yi-Ru, Ar

The National Theater is a green theater for art andlife, committed tothe sustainable development of art and talent, and providin
g a high-quality
learning environment for all ages. The annual 'Art into
the Theater'
project creates a learning space for students to experie
nce theater
performances, allowing them to recognize various typesof performing
arts, theater aesthetics, and etiquette through immers
ive participation.
E.SUN Cultural and Educational Foundation has been
supporting thisinitiative, enabling more children to experience perform
ing arts in thetheater. We hope to plant a seed of art in every child's
heart, opening up
a rich and broad learning path and life experience.
Chiu Yuan, Artistic Director of the National
Taichung Theater

159

Wei Wu Ying
is a center fo
r the arts and'Theater Arta stage for ev
s Experienceeryone. The
Ed
ucation Progra
on this stage.
m' allows child
Since 2019,ren to standthe program
art and life,
has aimed tomaking art mconn
ect people'sore accessible anStarting withd interestinghigh school sttothe public.
ud
ents, the progra
include elemen
m gradually extary and juni
panded toorhighschool students
areas and turn, reaching out
ing classroom
to rurals into theaters
life through dr, bringing art
ama courses.
into every ch
ild's
Jian, Wen-B
in, Artistic
Director of
the Kaohsiun
g Wei Wu
Ying National Center fo
r the Arts

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6.2.5 Sports Development
 Cultivating more outstanding Taiwanese athletes through youth and junior competitions
Youth is the power to change the world

In the growth process of each individual, there are important lessons to be learned atevery stage, especially in the 'youth and junior' age group. This is a critical period fortransitioning into adulthood and maturity. Defining oneself, shaping one's values, andmapping out one's future life blueprint are all urgent and crucial lessons!
E.SUN considers improving Taiwan's sports capabilities as its own corporate
responsibility and believes that systematic improvement and rooting are necessary.
Therefore, the company invests resources in the domestic 'baseball' and 'volleyball'foundation projects to enhance and improve these two popular sports in Taiwan,
promoting them more deeply in every corner of Taiwan. We hope to cultivate more
outstanding Taiwanese athletes and let the world see Taiwan!

Long-term development of youth baseball, letting the world see Taiwan's
baseballE.SUN has been investing in the long-term development of youth baseball in Taiwan,
continuously promoting the 'E.SUN Cup Youth Baseball Championship' for 16 years,
known as the highest stage for Taiwan's youth baseball and the only national teamselection competition. Every year, 10,000 high school students participate, and 20
outstanding athletes are selected to form the Chinese Taipei representative team to

9,600

participants

38

supported with sports equipment in remote areas

3,200

Runner-Up

in training camps and protection camps

Extending the sports life of youth baseball players is also an important aspect wevalue. Therefore, every year's E.SUN Cup will hold 'E.SUN Youth Baseball Training
Camp' and 'E.SUN Youth Baseball Protection Camp' activities, inviting MLB or NPBlevel coaches or players to come to Taiwan for personal guidance, such as Japan's
Rakuten Eagles' Wang Po-jung and Seibu Lions' Wu Nien-ting, to pass on the mostadvanced baseball concepts and correct techniques; and also cooperate with Chang
Gung Hospital and National Sports University's Sports Health Department to provide
better sports injury and protection concepts for players, allowing them to have alonger and healthier sports life. On the other hand, we also provide appropriate'equipment assistance' for schools in remote areas with relatively scarce resources,
so that schools dedicated to the development of youth baseball can have a better
environment, allowing coaches and players to focus more on daily baseball training
and cultivate more youth baseball talents, making Taiwan's baseball even better.

schoolsin E.SUN Youth Baseball Championshipparticipants

participate in the Asian Youth Baseball Championship and U18 World Cup. This is ofgreat significance to the athletes.
Since 2007, the Chinese Taipei Youth Baseball Team has won awards in international
competitions 10 times, including the 2022 U18 World Cup Runner-Up and the 2019
U18 World Cup Championship, which broke a decade-long drought. With a totalof 3 golds, 4 silvers, and 3 bronzes, E.SUN Cup has proven its ability to cultivate
outstanding athletes under high-intensity competition, and Taiwan's youth baseballrooting project has achieved remarkable results.

U18 World Cup 2022

Champion

U18 World Cup 2019160

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The Ju-Guang Cup is the only national youth andjunior men's and women's volleyball selection
competition in Taiwan. To participate, schools
must rank in the top 12 in points from the four
major volleyball competitions (Yongxin Cup,
Huazong Cup, Mazu Cup, and Hejia Cup).
Each year, about 48 schools and over 1,000
athletes participate. After the competition,
18-24 outstanding male and female athletes(depending on age limit) will be selected fortraining and represent Taiwan in U16-U20
international competitions, highlighting theimportance of the Ju-Guangt Cup for junior-highand high school volleyball athletes.

Seeking for Common Good

 Public Beneﬁt Activity Expenditure and Usage

Promoting E.SUN Ju-Guang Cup to boost Taiwanese volleyballE.SUN has achieved significant results inpromoting the sustainable development ofyouth baseball. To replicate E.SUN's successful
experience and attract more attention andsupport for competitions, E.SUN joined handswith the Chinese Taipei Volleyball Associationin 2022 to promote the 'E.SUN Ju-Guang Cup'national volleyball competition.

Our People

On the other hand, after the E.SUN Cup, we
also work with the table tennis association toplan training and protection camps, aiming
to cultivate and protect more athletes. We
hope to provide them with better sports injury
prevention and protection concepts, minimizing
the impact of sports injuries on their bodies andreducing the risk of injury. At the same time,
we hope that during the training camp, we caninvite outstanding current or retired foreign or
professional players to the site for personal
guidance, sharing their rich competition
experience, and helping young national players
improve their skills and broaden their horizons.

Take from society, use for society. E.SUN focuses on five major
themes for implementing social integration: 'Academic Education','Social Participation', 'Humanities and Arts', 'Sports Development',
and 'Major Disaster Relief'. While developing our business, we alsocare about community development, with 100% of our domestic
and international operating sites regularly visiting local markets,enterprises, schools, and hospitals to provide suitable financial
services and assist in economic development. In addition, we
adopt the LBG (London Benchmarking Group) framework tomeasure the overall situation of resource investment. According
to the LBG measurement framework, there are four forms ofparticipation in social integration: 'Material Donations', 'Cash
Donations', 'Time Contributions', and 'Management Expenses'. We
also evaluate based on three motivations: 'Charitable Donations','Community Participation', and 'Business Promotion'.

E.SUN Public Benefit Activity Expenditure Forms

In addition to live streaming the entire 2022
E.SUN Ju-Guang Cup from the quarterfinals,
inviting more people to watch and support
Taiwanese volleyball, E.SUN will provide eachparticipant with a magic towel and exclusive
protective gear before the competition to reduce
the risk of sports injuries. After the competition,individual awards will be given to the best
players in various positions, including setter,wing spiker, blocking angle, middle blocker, andlibero, to provide these athletes with the mostgenuine affirmation and encouragement.

Total Amount(NT$M)

Percentage

Cash Donations

159.9251.97%

Time contributions

8.49

2.76%

Material donations

138.7845.10%

0.51

0.17%

Management expenses
Total

307.7

Classiﬁcation by Activity Type
Total Amount(NT$M)

Percentage

Charitable Donations

26.02

8.46%

Community Participation

109.6435.63%

Commercial Promotion

172.0455.91%

Total

161

307.7

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6.3 Sustainable Operating Environment GRI：302-1、302-3、305-1、305-2、305-3、305-4
2007
Issued "E.SUN Environmental
Protection and Energy Saving
White Paper"

2011

2012

2013

Introduced ISO
14001 Environmental
Management System(first in Taiwan's financial
holding industry)

2014

Implemented ISO 50001
Energy Management
System and ISO 14064
Greenhouse Gas
Inventory (first in Taiwan's
financial industry)

2015

Introduced ISO 14046
Organizational Water
Footprint Assessment(first in Taiwan's financial
industry)

Established theEnvironmental
Sustainability Group under
the Corporate Social
Responsibility Committee

Formulated the "Human
Rights and Environmental
Sustainability
Commitment",
encouraging business
partners to jointly
respond and sign

2016

2017

2018

2019

Established andannounced "E.SUN
Financial Holding's
Guidelines for Supplier
CSR Implementation"and "Supplier CSR
Self-Assessment Form"• Taiwan business locations
achieved 100% certification
rate in ISO 14001 andISO 50001 audits (first in
Taiwan's financial industry)• E.SUN Technology Building
and E.SUN Hope Building
data centers obtained
LEED Gold International
Certification for green
buildings (first green data
center in Taiwan's financial
industry)• E.SUN Summit Building Human• E.SUN Bank wins the second
Resource Development Center
National Corporate Environmental
achieves LEED Gold InternationalAwards for Non-Manufacturing
Certification for Green Building (First
Category, Honor Environmental
green training center in Taiwan'sEnterprise Award, and Greenfinancial industry)
Action Award (Only in the financial
industry)• E.SUN Bank receives Gold Award• "E.SUN Baby Supplies
Sharing Platform" receives
BS 8001 Circular Economy
Certification (First in Taiwan's
financial industry)• Implements ISO 20400
Sustainable Procurement Standard• All Taiwan and overseas
business locations
achieved 100% certification
rate in ISO 14064 andISO 14046 audits (first in
Taiwan's financial industry)in the first National Corporate
Environmental Awards for NonManufacturing Category (Only in thefinancial industry)

2021

2022

• Establishes E.SUN's first zero-carbon branch• Officially became an RE100 member (the first
financial institution in Taiwan to be approved as a"low power consumption enterprise")• E.SUN Bank wins the third National Corporate
Environmental Awards for Non-Manufacturing
Category - Titan Award• Implemented ISO 46001 Water Resource
Efficiency Management System• Passed SBT, Science-based targets (First in
Taiwan, Second in Asia, and Third among global
financial institutions)• Completed the first transfer of the renewableenergy162

2020• E.SUN Bank receives the National
Sustainable Development Award

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As disasters caused by climate change sweep across the globe,
controlling temperature rise has become an important international issue.
E.SUN's Environmental Sustainability Group, under the Sustainable
Development Committee, establishes specific goals, methods, and plansfor environmental protection and energy conservation, regularly reports
and reviews progress with senior executives, and actively promotes
energy-saving and carbon reduction measures to reduce greenhousegas emissions from energy use. Internally, E.SUN Environmental andEnergy Saving White Paper - E.SUN Green Policy is issued and enforced,
covering areas such as environmental and energy-saving policies,
promotion of environmental education, establishment of an environmental
and energy-saving culture, and implementation of environmental andenergy-saving measures. Externally, E.SUN sets targets for carbon
reduction, water reduction, and waste reduction in line with annual DJSI,CDP, and other international projects, and verifies achievements throughannual third-party audits.

 Sustainable Operating Environment Targets:
Reduce total carbon emissions byby 2030, using 2020 as the base
year.

100%

42%

Achieve
renewable energy usage at domestic locations by2030, using 2020 as the base year.
Reduce water usage per revenue by
by 2030, using 2016 as the base
year.

31%

Using 2016 as the base year, the goal is to reduce
waste generated from revenue by
by 2030.

78%

Building Resilience

Our People

Seeking for Common Good Carbon reduction measures

GRI：302-1、302-3、305-1、305-2、305-3、305-4

Outstanding Achievement 1: E.SUN Bank is the first financial institution in Taiwan toreceive the LEED V4.1 O+M Platinum certification
LEED is an international green building certification system established by the U.S. Green
Building Council (USGBC), consisting of 7 assessment categories including energy andatmospher, water efficiency, materials and resources, indoor environmental quality, locationand transportation, sustainable sites, and design innovation. Each updated version poses
even higher challenges.
E.SUN Bank's Nanzi and Linyuan branches have been in operation for over 15 years, andwhile maintaining stable growth, also have emphasized environmental sustainability. By
using energy-efficient LED lighting, air conditioning equipment, and water-saving fixtures,
the branches have improved their energy and resource usage efficiency. Additionally, we
have installed solar power facilities on banch's rooftops and used renewable energy to
reduce carbon emissions. Furthermore, the branches have employed good spatial design
with natural ventilation to maintain indoor air quality, providing a comfortable and healthy
office environment for their employees. Implementing maintenance and management
systems for energy, equipment, and waste, which meet LEED standards and surpass
international average levels, successfully obtaining the highest level of LEED V4.1 O+M
Platinum certification for Taiwan's financial industry.
Achieving this high-standard international green building certification is not only an honor
but also a responsibility. In the future, E.SUN Bank will continue to improve its operationalenergy efficiency and build more low-carbon and environmentally friendly structures,
demonstrating our commitment to sustainable development.
Outstanding Achievement 2: Implementing the energy management system (EMS)
E.SUN Bank actively responds to the Taiwan government's "Net Zero Emissions Roadmap"
set for 2022, aiming to achieve net-zero emissions in collaboration with the government
by 2050. According to the American Council for an Energy-Efficient Economy (ACEEE),
improving energy efficiency is a cost-effective and visible approach to carbon reduction forbusinesses. To implement energy management, it is crucial to understand various energy
usage scenarios and data, which can help enterprises select the right strategies anddevelop energy management plans. By using energy data models, businesses can optimize
their energy allocation and improve strategies to enhance energy efficiency and reducecarbon emissions. In 2022, E.SUN Bank introduced an energy management monitoring
system to track and record usage, solar power generation, renewable energy supply, andutility usage for its major energy-consuming equipment such as lighting, air conditioning,and power outlets. The data is transmitted via the internet to a cloud-based database,and various management reports are generated to formulate energy usage strategies andefficiency improvement plans, thus fulfilling the requirements for a net-zero carbon branch.
Through the integration of EMS, E.SUN bank can better understand key areas for carbon
reduction, minimize energy waste, and increase the proportion of renewable energy usage,
moving closer to achieving its carbon reduction goals and a sustainable, net-zero future.

163

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Outstanding Achievement 3: Officially joining the RE100 membership
E.SUN Bank actively supports net-zero emissions and promotes the use of renewableenergy. In 2022, E.SUN Bank became the first Taiwanese financial institution to join the
RE100 as a "low-energy consumption enterprise" alongside over 300 leading global
companies committed to using 100% renewable energy. E.SUN Bank's participationin the RE100 is a significant milestone towards achieving net-zero emissions. In the
future, E.SUN Bank will continue to leverage its financial resources to promote thedecarbonization of the energy system and contribute to global climate goals.
Faced with the challenges and pressures of achieving net-zero emissions, using clean
energy is a global trend. E.SUN Bank has pledged to use 100% renewable energy atdomestic branches by 2030, increasing renewable energy consumption by 10% annually
to reach this target. Not only generate renewable energy through solar power facilities,
but also actively engages electricity suppliers to plan renewable energy purchases.
By analyzing energy consumption patterns and discussing suitable power generation
methods and locations for E.SUN Bank with external energy suppliers, we planned tosign electricity purchase agreements to secure its renewable energy supply. After nearly
two years of effort and verification by Taiwan Power Company, the Energy Bureau, local
governments, and the Inspection Bureau, E.SUN Bank completed the first renewableenergy wheeling in December 2021.
In 2022, E.SUN Bank continued to expand its renewable energy usage, signing newcontracts for renewable energy supply in February and November. To date, E.SUN Bank
has signed four renewable energy contracts, generating approximately 10.85 million
kWh of renewable energy annually, which accounts for 24% of E.SUN Bank's annual
energy consumption. E.SUN bank has used 6.54 million KWh of renewable energy in2022, making it a leader in Taiwan's financial industry.
E.SUN Bank actively creates a sustainable operating environment through green
buildings, solar-powered branches, and renewable energy purchases, showcasing ourdetermination to use 100% renewable energy by 2030 and strive towards becoming
a net-zero emissions bank by 2050. Looking ahead, E.SUN Bank will continue toexcel in comprehensive performance, corporate social responsibility, and sustainable
development, integrating its core financial business with ESG and supporting the United
Nations' Sustainable Development Goals. By leveraging the influence of the financial
industry, E.SUN Bank will collaborate with the government, enterprises, and individuals
to create a sustainable and prosperous future.

Seeking for Common Good

Carbon reduction in 2022
8,782,264kWh=

4,470

metric tons of CO2e

Replaced old energy-consuming lighting equipment with
LED energy-saving bulbs -3.9%
Replaced and improved the old air
conditioning units -1.8%

Turned off the signage lighting -0.7%

Purchased renewableenergy certificates -16.6%

Installed solar panels -2.8%

GRI：302-1、302-3、305-1、305-2、305-3、305-4
2022 Outcome
2022 Target
Reduce total amount of carbon emissions by 8.4% Reduce total amount of carbon emissions by 10.4%
The ratio of renewable energy use is 22.6%
The ratio of renewable energy use is 20%
2030 Target
2023 Target
Reduce total amount of carbon emissions by 12.6% Reduce total amount of carbon emissions by 42%
The ratio of renewable energy 100%
The ratio of renewable energy use is 30%

Used renewable energy-74.2%

2019-2022 GHG Emissions
2019

2020

2021

2022

Scope 1 (t-CO2e)

2,455

2,399

1,857

1,844

Scope 2 (t-CO2e)22,44322,29922,105

20,294

Total emissions (t-CO2e)

24,89824,69823,962

22,138Carbon emissions / revenue (t-CO2e/ NT$M)

0.45660.43900.41390.40392019 - 2022 Energy Consumption
2019

2020

2021

2022

Power consumption (MWh)42,49844,17744,76747,922Other energy usage (GJ)

25,33327,124

17,29025,323

Total energy usage (GJ)

178,326

186,159

182,408

197,845

3.271

3.310

3.151

3.502

Energy/revenue (GJ/million NTD)

Note: The energy types are mainly purchased electricity (non-renewable energy) for operational
activities, with petroleum, diesel, liqueﬁed natural gas and gas as other energy sources.

Note: In 2020, the carbon emissions for Scope 1& 2 amounted to 24,698 metric tons, serving as the baseline.

164

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Banking for Better Water Usage Reduction GRI：303-1、303-3
2022 Outcome
Reduce water usage perunit revenue by 16.1%

2023 Target
Reduce water usage perunit revenue by 15.6 %2030 Target
Reduce water usage perunit revenue by 31.1%

Note: In 2016, water usage per unit revenue was 5.4054 metric tons/NT$ million, andthis is used as the baseline.

2019-2022 Water usage
2019

2020

2021

2022

Water (Tons)

244,804

264,917

238,715

248,326

Usage of water/
revenue (Tons / NT$M)

4.49004.7097

4.12314.5310Note: The activation of two ofﬁce builings of the second headquarters in 2022 resulted
in an increase in water consumption.

15.261

million liters

Our People

Seeking for Common Good

 Waste Usage Reduction

2022 Target
Reduce water usage perunit revenue by 13.3%

2022 Water Reduction Beneﬁt

Building Resilience

Outstanding Achievements: Promoting environmental reuse
E.SUN's primary source of waste is domestic garbage. To implement the 3R measures of reducing,reusing, and recycling, active waste management is carried out, and waste disposal records are
kept. Resource recovery starts at the source, with centralized sorting, organizing, and disposal,
as well as regular tracking systems, to effectively implement waste management. Waste sortingareas are set up at each site and are divided into three categories based on municipal regulations:domestic waste, recyclable waste, and kitchen waste. Container and cardboard recycling areas arealso established, increasing resource recycling efficiency and reducing the need for waste disposal.
Employees are encouraged to participate actively in recycling efforts. Monthly waste disposal
weight reports are submitted to the management, with regular records and analysis conducted.
Tracking is carried out for any anomalies in the data. Furthermore, waste disposal processes of thevarious buildings are audited at least once a year and inspection records are retained to ensure thelegitimacy of the final waste destination.
E.SUN Financial was the first bank in Taiwan to respond to the Taipei City Government's policy ofbanning single-use and melamine dinnerware. By transforming its headquarters and the Second
Headquarters Building's employee cafeterias into green dining areas, E.SUN has eliminatedabout 60,000 disposable containers and replaced them with environmentally friendly dinnerware,
reducing waste by 16,320 kilograms. This not only protects employee health but also reduces
waste, conserves the environment, and promotes healthy, eco-friendly dining habits. In 2020, plastic
restrictions were extended to building entrances and employee cafeterias, with electronic posters
providing information on reducing plastic bag usage. All events are now required to use reusable
cups. Environmental protection is a global issue, and E.SUN is committed to reducing waste-related
environmental harm by promoting eco-friendly practices throughout society. With the "one love leads
to more love" mindset, the bank leverages its influence to contribute to a sustainable future.

Established the rainwater
GRI：306-3
recycling system
2022 Target
Reduce waste per unit revenue by 33.3%-48.25%2022 Outcome
Reduce waste per unit revenue by 33.3%

2023 Target
Reduce waste per unit revenue by 38.9%2030 Target
Reduce waste per unit revenue by 77.8%

Note: In 2016, waste per unit revenue was 13.39 kg/NT$ million, and this is used as the baseline.

Replacement of oldwater-using equipment-51.75%2019~2022 Waste generation
2019

2020

2021

2022

Waste disposed (tons)

434.705

370.345488.215

489.426

Recycled / reused (tons)

185.054224.164209.542202.788

Total waste (tons)

619.759594.509697.757

692.214

7.97

6.58

8.43

8.93

Waste / revenue (kg/ NT$ million)

Note: The activation of two ofﬁce builings of the second headquarters in 2022 resulted in an increase inwaste consumption.

165

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6.3.1 Supplier Management

In 2022, E.SUN worked with 1,457 suppliers chains include service supply chains,equipment supply chains, and project contractors; They are classified into categories
such as computer equipment, telecommunications, human resources, furniture
equipment, printing, office supplies, maintenance and electronic equipment, civilengineering, and architectural design etc., without any significant changes.
Implementing sustainable procurement standards

To establish a supply chain that protects the environment, human rights, safety,
health and sustainable development, E.SUN implemented ISO 20400 Sustainable
Procurement - Guidance to devise procurement policies in 2022. We establish
common and specific norms for procurement, regularly review supplier performance,and conduct external audits to ensure compliance with the standard. The common
norms provide clear guidance on environmental, social, and economic aspects,
while the specific norms apply to specific categories such as construction, IT
equipment, and printing, etc.. At the same time, in response to the "Buying PowerSocial Innovation Product and Service Procurement Award" promoted by the
Small and Medium Enterprise Administration, Ministry of Economic Affairs, weprioritize products or services provided by suppliers who is the member of Social
Innovation organization. E.SUN has long adhered to the local procurement policy.
As a priority,local suppliers are the main sources of goods for various types ofprocurements. The proportion of expenditures on local suppliers in 2022 was 97%.
To fulfill SDG 12 "Responsible Consumption and Production", E.SUN has actively
responded to the green lifestyle and consumption policy for the public promotedby the Taiwan EPA. Upholding green and ecofriendly procurement principles,
E.SUN continues to participate in the EPA's Green Procurement Program for Private
Enterprises and Organizations. E.SUN has been named an outstanding benchmark
organization for "Green Procurement by Private Enterprises and Organizations" byEnvironmental Protection Administration Executive Yuan for 13 years in a row. In
2022, the bank conducted green procurements amounting to NT$388 million andthe cumulative amount spent on green procurements has exceeded NT$1.98 billion.
Meanwhile, We hope to influence supply through our procurement demand, promote
the formation of a green supply chain, and use our influence to create sustainable
development opportunities with suppliers.
Supplier management procedures

From 2022, E.SUN clasify suppliers by reviewing qualification to differentiate
management. Qualified suppliers are in accordance with the E.SUN Bank SupplierManagement Guidelines, and E.SUN only works only with suppliers that comply withlocal regulations, and have signed the Statement of Commitment to Human Rights
and Environmental Sustainability, and adhere to the E.SUN FHC Corporate Social
Responsibility Guidelines for Suppliers. The statement clearly specifies E.SUN's

Building Resilience

Our People

Seeking for Common Goodrequirements and expectations of the supplier regarding integrity, moral codes,
environmental health and safety, prohibition of child labor, labor management,elimination of any form of forced labor, absence of damage to basic labor rights,
basic human rights,the code of ethics, and ethical management. In addition, we
perform regular supplier on-site visit and qualification reviews to understand theirservice conditions, risk indicators, and ESG performance, and prevent, handle,
remedy, or control potential and adverse sustainability impacts. Before cooperatingwith suppliers, it is necessary to conduct qualification review with "Corporate
Social Responsibility Self-Assessment Form for Suppliers". and the "Statement ofCommitment to Human Rights and Environmental Sustainability". From these statistics,
we can understand the supplier's environmental protection actions, including whether
to take action on environment, green procurement, etc.). The result of scoring in 2022
is shown in the table below:

2022 Corporate Social Responsibility Self-Assessment Scoring Result
AspectAverage Scoring

Full Scoring

Health and Safety

22.9

25

Human Rights and Labor Practices

34.3

35

Environmental Protection

14.1

15

Business administration

24.8

25

As for the aspect of company's operation,all of our interacted suppliers, are 100%
complied with the ethical management clause. We also invite requesting unit toevaluate supplier's service conditions, and review public information. We also
monitoring suppliers' performance on corporate social responsibiility by on-site or
online visits.
Sustainable supply chain engagement
Through on-site visits, we confirming suppliers business operations, internalmanagement, safety and health and environmental standards are the same as ourbusiness philosophy, and encourage suppliers to put more efforts on reducing
negative environmental impacts. We require suppliers performing highly dangerous
work, including subcontractors in new building projects or branch renovation
projects, to comply with the Occupational Safety and Health Act. In addition,
responsible persons of said suppliers and E.SUN employees must provide healthand safety training for the operators involved and raise awareness against danger inorder to reduce injuries in the process. In addition, by holding supplier convention
continuously to exchange the topics of environmental protection, human rights, etc.,
communicating sustainable concepts, sharing government policies and resources,and encouraging suppliers to solve social problems through innovative methods tocultivate new consumption concious in the cycle of production and consumption, andexert influence to implement responsible consumption.

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Supplier Climate Risk Analysis

Our People

Seeking for Common GoodTo understand the impact of potential climate risks on suppliers and the indirect impact on
E.SUN, evaluations of physical risks and transition risks were conducted on business locationsof important suppliers.

systems (GIS) technology. The two were then comprehensively evaluated,and sensitivity (risk) levels were graded, with the results shown in the tablebelow.

Physical risks
To assess the impact of climate change on suppliers and to understand the impacts from the
upstream of E.SUN’s supply chains. We conduct scenario testing on the main physical risksof flooding in Taiwan for the business locations of our main suppliers. The hazard level wasassessed using the IPCC AR6 scenario data to analyze the impacts of low, medium, and highemissions and is transformed into localized probabilities of extreme rainfall by climatologists.
The vulnerability level was assessed by comparing flood potential information using theWater Resources Agency's third-generation Flood Inundation Map with geospatial information

After evaluation, in the above three scenarios, most physical climate risks
do not have significant impacts on the supply chain of the Company. At
most, only 4% of the suppliers may be affected. E.SUN suggests supplierswith high flood risks install flood control equipment and formulate measuresthrough on-site inspections and supplier conferences. Although the current
evaluation shows that the impact of suppliers on the operation of E.SUN
is minimal, E.SUN will continue to evaluate the impact of climate risks oneach supplier. E.SUN will establish a second source of procurement to beprepared when necessary to avoid the risks brought by climate change.
Unit: Number of suppliers

Description of
scenario

SSP1-2.6

SSP2-4.5

SSP5-8.5

Low emissions scenarios,
global temperature increases
by about 1.5 and 1.7 in 2030
and 2050, respectively

Medium emission scenarios,
global temperature increases
by about 1.5 and 2.0 in 2030
and 2050, respectively

High emission scenarios, global
temperature increases by about
1.6 and 2.4 in 2030 and 2050
and 2050

2030

2050

1

3

2030

2050

2030

2050

2

2

4

High risk
Medium-high risk
Medium risk
Medium-low risk
Low risk

2

1

9

5

10

8

8

5

117

117

117

117

117

117

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Journey to Net Zero

Banking for Better

Transition risks
To understand the impact of carbon fees on the supply prices of E.SUN's
suppliers, E.SUN evaluates the possible scenarios for the collection of carbon
fees. The main risk factor for transition risks is the suppliers transferring carbonrelated fees, thereby increasing E.SUN's procurement costs. The short-term
scenario takes into consideration the collection of carbon fees stipulated in the
Climate Act, and the medium and long-term scenarios evaluate by referring to
the IEA and NGFS scenarios. The carbon emission produced from procurement
is analyzed and estimated based on the carbon emission coefficient of eachindustry's revenue and procurement amount. The impact of suppliers transferring(Short-term) carbon fees leviedin response to climate change
Description of scenario

Manufacturing
Transferamount(NT$) Service industry
Retail industry
The ratio of transfer amount of carbon
fees to the procurement amountThe carbon fee is NT$300 per
ton.

Building Resilience

Our People

Seeking for Common Goodcarbon-related fees is estimated based on the carbon fees in each scenario. The
evaluation results are shown in the table below.
If suppliers will transfer all their new carbon fees to E.SUN, leading to anincrease in all short, medium, and long term scenarios. To reduce the risk ofcarbon tax transfer in the future, E.SUN encourages suppliers to establish
response strategies in advance through implementing education, training, andcommunications. On the basis of mutual benefit, E.SUN lowers the costs anddrives sustainable development for suppliers.

IEA 2050 net zero scenario(Medium- and long-term)

NGFS 2050 net zero scenario(Medium- and long-term)

The carbon fee
The carbon fee
The carbon fee
The carbon fee
is NT$4,248
is NT$7,585
is NT$4,733
is NT$13,259(US$140) per ton. (US$250) per ton. (US$156) per ton. (US$437) per ton.

2025

2030

2050

2030

2050

4,228

42,503

106,899

47,361

186,860

797,025

8,012,215

20,151,447

8,927,897

35,224,729

518,1145,208,422

13,099,653

5,803,670

22,898,194

0.03%

0.30%

0.76%

0.34%

1.33%

Note: IEA carbon fees refer to the GEC Model 2022: Net Zero Emissions by 2050 scenario Advanced economies with net zero emissions pledges, where carbon fees for energy-related industries
is applicable to all industries.
Note: NGFS adopts the carbon fees of MESSAGEix-GLOBIOM 1.1 Net Zero 2050 in Taiwan
Note: In the short-term scenario, carbon fees are levied based on emissions. In the medium and long-term scenarios, carbon-related fees are calculated based on the forms of carbon emission
trading (29% reduction by 2030, 100% reduction by 2050). The carbon fee will be used to make up for the differences in the shortfall in emission reduction.

168

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Journey to Net Zero

Banking for Better

Building Resilience

Our People

Seeking for Common Good

Appendix 1 - GRI Content Index
Statement of use

E.SUN FHC's report is prepared in accordance with GRI standards. The disclosure period of this report is the fiscal year 2022 (January 1, 2022 to
December 31, 2022).

GRI 1 used

GRI 1: Foundation 2021

Applicable GRI Sector Standard（s）

G4 Financial Services Sector Disclosure

GRI 2: General Disclosures 2021
GRI
Standards★ Major Themes

Disclosure Items

ChapterPage
Number2-1

Organizational Information

About the Report
1.1 Vision

2-2

Entities included in the sustainability report

About the Report3

2-3

Reporting period, reporting frequency, and contact person

About the Report3

2-4

Information reorganization

About the Report32-5

External assurance/confirmation

About the Report3

2-6

Activities, value chain, and other business relationships

13
20

2-7

Employees

2-8Non-employee workers

1.1 Vision
1.4 Material Issues
Appendix 12 - Human Resource Management
Indicators
4.9 Human Rights Protection
Appendix 12 - Human Resource Management
Indicators

2-9

Governance structure and composition

4.1 Corporate Governance

89

2-10

Nomination and selection of the highest governance body

4.1 Corporate Governance

89

2-11

Chair of the highest governing body

4.1 Corporate Governance

89

2-12

Role of the highest governing body in overseeing risk management

4.1 Corporate Governance

89

2-13

Delegating responsibilities for managing risks

1.3 Sustainable Governance
4.1 Corporate Governance

18
89

2-14

The role of the highest governance body in sustainability reporting

1.3 Sustainable Governance

18

2-15

Benefit breakthrough4.1 Corporate Governance

89

2-16

Communication of key significant events

4.2 Code of Conduct and Ethic

96

2-17

Collective intelligence of the highest governance body

4.1 Corporate Governance

89

169

3
13

184
118
184

Omission/NoteOur Story

Journey to Net Zero

GRI
Standards

Banking for Better

Building Resilience

Disclosure Items

Chapter

Our People

Page
Number

2-18

Performance Evaluation of the Highest Governance Body

4.1 Corporate Governance

89

2-19

Compensation Policy

4.1 Corporate Governance

89

2-20

Compensation Determination Process

4.1 Corporate Governance

89

2-21

Annual salary ratio

4.1 Corporate Governance

89

2-22

Statement on sustainable development strategy

Message from the Chairman and the President

5

4.2 Code of Conduct and Ethic
4.9 Human Rights Protection
4.2 Code of Conduct and Ethic
4.9 Human Rights Protection
4.2 Code of Conduct and Ethic
4.9 Human Rights Protection

96
118
96
118
96
118

2-23

Policy commitment

2-24

Incorporation of policy commitments

2-25

Negative impact compensation process

2-26

Mechanism for soliciting suggestions and proposing relevant matters

4.2 Code of Conduct and Ethic

96

2-27

Compliance with regulations

4.2 Code of Conduct and Ethic

96

2-28

Qualifications of cooperative members

4.1 Corporate Governance

89

2-29

Stakeholder negotiation methods

1.4.1 Communication with stakeholders

21Group Agreement

5.3 Employee Care and Friendly Workplace
Environment

136

2-30

Seeking for Common Good

Omission/Note

GRI 3: Major Theme Disclosure Items
GRI
Standards

Disclosure Items

3-1

Major Theme Decision Process

3-2

Major Theme Checklist

3-3

Major Theme Management

Chapter

1.4 Material Issues

170

Page
Number20

Abbreviation/NoteOur Story

Journey to Net Zero

Banking for Better

Building Resilience

Our People

Seeking for Common Good

Speciﬁc Theme Standards
GRI 200: Economic Series
SeriesDisclosure

GRI 201:★ Economic Performance 2016

201-1

GRI 202:★ Market Position 2016
GRI 203:★ Indirect Economic Impacts 2016

202-1

201-3

Description

Corresponding Chapter

Page
NumberDirect economic value generated and distributed by theorganization
Defined benefit plan obligations and other retirement plans

1.2 Business Performance17

5.2 Talent Attraction and Retention

131

Ratio of standard entry-level wage by gender compared to local
minimum wage
Development and impact of infrastructure investments andsupport services

142

203-2

Significant indirect economic impacts

GRI 204:★ Procurement Practices 2016
GRI 205:★ Anti-corruption 2016

204-1

Proportion of spending on local suppliers

5.3.1 Equal Work, Equal Pay; Diverse
Communication Channels
3.2 Inclusive Finance
3.4 FinTech and Innovation
6.2 Social Inclusion
3.2 Inclusive Finance
6.2 Social Inclusion
6.3.1 Supplier Management

205-2

Communication and training on anti-corruption policies andprocedures
Confirmed corruption incidents and actions taken

4.2 Code of Conduct and Ethic
6.3.1 Supplier Management
4.2 Code of Conduct and Ethic

96
166
96

GRI 206:★ Anti-competitive behavior 2016
GRI 207:★ Tax 2019

206-1

4.2 Code of Conduct and Ethic

96

207-1

Legal actions involving anti-competitive behavior, anti-trust, andmonopoly practices
Tax policy

4.8 Tax Governance

115

207-2

Tax governance, control, and risk management

4.8 Tax Governance

115

207-3

Stakeholder engagement and management on tax-related issues

4.8 Tax Governance

115

207-4

Country Report

4.8 Tax Governance

115

203-1

205-3

171

71
83
152
71
152
166

Omission/Notes

Our Story

Journey to Net Zero

Banking for Better

Building Resilience

Our People

Seeking for Common GoodGRI 300: Environmental Series 2016
SeriesDisclosure

Description

GRI 302:★ Energy 2016

302-1

Energy consumption within the organization

302-3

Energy intensity

GRI 303:
Water 2018

303-1
303-3

GRI 305:★ Emissions 2016

305-1

Direct (Scope 1) greenhouse gas emissions

305-2
305-3
305-4

GRI 306
Wastewater and Waste 2020
GRI 308:★ Supplier Environmental Assessment 2016

306-3
308-1

Corresponding Chapter

Page Number

Interactions and impacts on shared water resources

6.3 Sustainable Operating Environment
Appendix 13 - Sustainable Operating Environment Indicators
6.3 Sustainable Operating Environment
Appendix 13 - Sustainable Operating Environment Indicators
6.3 Sustainable Operating Environment

162

Water withdrawal

6.3 Sustainable Operating Environment

162

6.3 Sustainable Operating Environment
Appendix 13 - Sustainable Operating Environment Indicators
Energy Indirect (Scope 2) Greenhouse Gas Emissions 6.3 Sustainable Operating Environment
Appendix 13 - Sustainable Operating Environment Indicators
Other Indirect (Scope 3) Greenhouse Gas Emissions 6.3 Sustainable Operating Environment
Appendix 13 - Sustainable Operating Environment Indicators
Greenhouse gas emission intensity
6.3 Sustainable Operating Environment
Appendix 13 - Sustainable Operating Environment Indicators
Generation of waste
6.3 Sustainable Operating Environment
Appendix 13 - Sustainable Operating Environment Indicators
Adopting environmental standards for selecting new 6.3.1 Supplier Management
suppliers

Omission/Note

162
191
162
191

162
191
162
191
162
191
162
191

162
191

166

GRI 400: Social series
SeriesGRI 401:★ Employment-related 2016

GRI 402:
Labor/Management Relations 2016
GRI 403:★ Occupational Safety and Health 2018

Disclosure

Description

Corresponding Chapter

Page Number

401-1

New employees and employee turnoverAppendix 12 - Human Resource Management Indicators

184

401-2

5.2 Talent Attraction and Retention

131

401-3

Benefits provided to full-time employees (excluding
temporary or part-time employees)
Parental leave

Appendix 12 - Human Resource Management Indicators

184

402-1

Minimum notice period for operational changes

5.1 Talent Cultivation and Development

122

403-1

Occupational Safety and Health Management System 5.3 Employee Care and Friendly Workplace Environment

136

403-2

Hazard Identification, Risk Assessment, and Incident
Investigation
Occupational Health Services

5.3 Employee Care and Friendly Workplace Environment

136

403-3

5.3 Employee Care and Friendly Workplace Environment

136
136

403-5

Worker Participation, Consultation, and5.3 Employee Care and Friendly Workplace Environment
Communication on Occupational Safety and HealthTraining on occupational safety and health for workers 5.3 Employee Care and Friendly Workplace Environment

403-6

Promotion of worker health

5.3 Employee Care and Friendly Workplace Environment

136

403-7

5.3 Employee Care and Friendly Workplace Environment

136

5.3 Employee Care and Friendly Workplace Environment

136

403-9

Prevention and mitigation of direct work-related
occupational safety and health impactsof impacts
Workers covered by the occupational safety andhealth management system
Occupational injury

403-10Occupational diseases

5.3 Employee Care and Friendly Workplace Environment
Appendix 12 - Human Resource Management Indicators
5.3 Employee Care and Friendly Workplace Environment
Appendix 12 - Human Resource Management Indicators

136
184

403-4

403-8

172

136

136
184

Omission/NoteOur Story

SeriesJourney to Net Zero

Disclosure

GRI 404:★ Training and Education 2016

404-1

404-2
404-3
GRI 405:
Employee diversity and equal
opportunity 2016

405-1

405-2

Banking for Better

Building Resilience

Description

Our People

Corresponding Chapter

Average hours of training per employee per year

Seeking for Common Good

Page Number

5.1 Talent Cultivation and Development
Appendix 12 - Human Resource Management
Indicators
Enhancing employee competency and transitional
5.1 Talent Cultivation and Development
assistance programs
5.2 Talent Attraction and Retention
Percentage of employees receiving regular performance 5.1 Talent Cultivation and Development
and career development reviews
Diversity of management units and employees
4.1 Corporate GovernanceAppendix 12 - Human Resource Management
Indicators
Ratio of female to male basic salary and remuneration
4.1 Corporate GovernanceAppendix 12 - Human Resource Management
Indicators
Incidents of discrimination and improvement actions
4.9 Human Rights Protection
taken by the organization
Significant risk of child labor in operations and suppliers 4.9 Human Rights Protection
6.3.1 Supplier Management
Significant risk of forced and compulsory labor incidents 4.9 Human Rights Protection
in operations and suppliers
6.3.1 Supplier Management
Incidents involving infringement of indigenous rights
4.9 Human Rights Protection

122
184

3.2 Inclusive Finance
6.2 Social Inclusion
6.3.1 Supplier Management

71
152
166

122
131
122
89
184
89
184

GRI 406:
Non-discrimination 2016
GRI 408: Child Labor 2016

406-1

GRI 409: Forced or Compulsory
Labor 2016
GRI 411: Indigenous Rights 2016

409-1

GRI 413: ★ Local Community 2016

413-1

GRI 414: ★ Supplier Social
Assessment 2016
GRI 415:
Public Policy 2016
GRI 417: Marketing and Labeling
2016

414-1

Operations with local community engagement, impact
assessments, and development programs
New suppliers screened using social criteria

415-1

New suppliers screened using social criteria

1.2 Business Performance

17

417-1

Requirements for product and service information andlabeling
Incidents of non-compliance with regulations regarding
product and service information and labeling
Incidents of non-compliance with marketing regulations

3.3 Treating Customers Fairly and Customer
Experience
3.3 Treating Customers Fairly and Customer
Experience
3.3 Treating Customers Fairly and Customer
Experience
4.7 Information Security and Personal
Information Protection Management
4.2 Code of Conduct and Ethic

78

408-1

411-1

417-2
417-3

GRI 418:★ Customer Privacy 2016
GRI 419:★ Social Compliance with Economic
Regulations 2016

418-1
419-1

Complaints regarding breaches of customer privacy orloss of customer data
Violations of laws and regulations in social andeconomic domains★ Social Compliance with Economic Regulations 2016

Corresponding chapter
2.3 Opportunity Identification
2.4 Risk Identification

Climate change response

173

Omission/Note

118
118
166
118
166
118

78

No such incidents

78

No such incidents

111
96Page number
41
44

Omission/NoteOur Story

Journey to Net Zero

Banking for Better

Building Resilience

Our People

Seeking for Common Good

Appendix 2 - Index of GRI (Global Reporting Initiative) G4 Indicators of Financial Service Sector
Aspect★ Product Portfolio
DMA

DMA/GRI Indicator
DMA

Corresponding Chapter

Page Number

FS1

Policies with specific environmental and social components
applied to business lines.

3.1 Sustainable Finance / 3.2 Inclusive Finance / 3.4 FinTech and Innovation

57 / 71 / 83

FS2

Procedures for assessing and screening environmental andsocial risks in business lines.

3.1 Sustainable Finance

57

FS3

Processes for monitoring clients' implementation andcompliance with environmental and social requirements
included in agreements or transactions.

3.1 Sustainable Finance3.2 Inclusive Finance

57 / 71

FS4

Processes for improving staff competency to implement theenvironmental and social policies and procedures as applied
to business lines.

5.1 Talent Cultivation and Development / 6.1 Natural Environment andBiodiversity Preservation / 6.2 Social Inclusion

122 / 145 / 152

FS5Interactions with clients/investees/business partners regarding 3.1 Sustainable Finance / 3.2 Inclusive Finance / 3.4 FinTech and Innovation /6.3.1 Supplier Management
environmental and social risks and opportunities. FS7
Products and services designed to deliver a specific social
benefit for each business line broken down by purpose andcurrency

57 / 71 / 83 / 166

FS7

Products and services designed to deliver a specific social
benefit for each business line broken down by purpose andcurrency value.

3.2 Inclusive Finance / 3.4 FinTech and Innovation / 6.2 Social Inclusion

71 / 83 / 152

FS8

Products and services designed to deliver a specificenvironmental benefit for each business line broken down by
purpose and currency value.

3.1 Sustainable Finance

57

Assurance

DMA

FS9

Assessment of the implementation status of environmental and 3.1 Sustainable Finance / 3.2 Inclusive Finance / 4.9 Human Rights Protectionsocial policy and risk assessment processes, including thescope and frequency of assurance.

57 / 71 / 118

Participation

Indicator

FS10

The number and percentage of companies in the investment
portfolio that have mutual impacts on environmental or social
aspects, and the reporting editing organization.

3.1 Sustainable Finance / 3.2 Inclusive Finance /3.4 FinTech and Innovation

57/ 71 / 83

Product Responsibility- Product and Service
Labeling

DMA

FS15

Relevant policies for the fair design and sales of financial
products and services.

3.3 Treating Customers Fairly and Customer Experience

78

FS16

Relevant measures to strengthen the financial knowledge ofvarious types of beneficiaries.

3.2 Inclusive Finance/ 5.1 Talent Cultivation and Development

71 / 122

FS13

Types of operating outlets in low population density or
economically disadvantaged areas.

3.2 Inclusive Finance

71

FS14

Relevant measures to promote better financial services forvulnerable groups.

3.2 Inclusive Finance71

Social - Local
Communities

Indicator

174

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Journey to Net Zero

Banking for Better

Building Resilience

Our People

Seeking for Common Good

Appendix 3 - Material Issues
A-1 Difference between material issues in 2022 and 2021
Major Themes (in order)

Annual Differences

Adjustment Explanation

Green Finance

Theme Consolidation

Considering the unification of information disclosure, combining 'Responsible Lending' and 'Responsible Investment' into 'Green
Finance'.

Customer Experience andFair Treatment

Name Adjustment

Considering a broader perspective of customer experience, adjusting 'Fair Treatment and Customer Experience' to 'Customer
Experience and Fair Treatment'.

Climate Change Factors

Theme Consolidation

Considering the unified disclosure of information, integrating 'climate change risks', 'climate change opportunities', and 'carbon
reduction actions'.

Information Security andPersonal Data Protection

Theme Consolidation

Considering the close focus on 'information security' and 'personal data protection', and the internal management by a unified unit,
the themes are consolidated.

Major Infectious Disease Control Measures

Theme Deletion

After evaluating the impact and severity, the major theme is deleted.

Human Rights Protection

Theme Deletion

Evaluate the impact and severity, and remove major themes.

A-2 Explanation of involvement in the value chain

E.SUN's value chain includes upstream (supplier, partners, government), E.SUN's operations (including FHC and subsidiaries), and downstream (customers). Overall, it covers all of E.SUN's products andservices. The impact and involvement of material issues in the value chain are described in the table below:
Value Chain Impact Boundary and Involvement Explanation
Major Theme
supplier

Upstream

E.SUN

downstreamcooperative partner

ﬁnancial control andsubsidiaries

clientDirectDirectDirectBusiness Relations

Indirect

DirectBusiness Relations

government

1

Financial technology and innovation

Business Relations

2

Talent Cultivation and Development

3

Green Finance4

Customer Experience and Fair Treatment

DirectDirectDirect5

Sincere Management

DirectDirectDirect6

Risk management

Business relations

Business relations

DirectDirectIndirect

7

Climate Change Adaptation

Business Relations

Indirect

DirectDirectBusiness Relations

Business Relations

Indirect175

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Journey to Net Zero

Banking for Better

Building Resilience

Our People

Seeking for Common Good

Value Chain Impact Boundary and Involvement Explanation
Upstream

Major Theme
supplier
8

Information Security and Personal Data Protection

9

General Financial Benefits

10

Legal Compliance11

Talent Attraction and Retention

12

Corporate Governance13

Employee Care and Friendly Working Environment

cooperative partner

government

E.SUN

downstream

ﬁnancial control andsubsidiaries

clientIndirect

Indirect

Indirect

DirectDirectBusiness Relations

Business Relations

Indirect

DirectBusiness Relations

DirectDirectDirectIndirect

DirectIndirect

Indirect

DirectDirectDirectBusiness Relations

Indirect

Indirect

DirectDirectAppendix 4 - Progress of Commitments under the Sustainable Finance Pioneers
Commitment Items
Green Procurement

Information
Disclosure

Investment andEngagement

Goals

E.SUN's progress in 2022

Continuously selected as the 'Outstanding Green Procurement Promotion Unit for Private Enterprises' by theEnvironmental Protection Administration of the Executive Yuan before the end of 2024.

In progress, E.SUN has been awarded the 'Outstanding Green Procurement
Mark' by the Environmental Protection Administration for 13 consecutive
years. In 2022, the green procurement amount reached NT$388 million(5.9% of the total procurement amount), an increase of NT$170 million
compared to 2021.

1. For the disclosure items related to environmental issues in the 2022 Sustainability Report or the statisticalvalues involved, or the disclosure items in the TCFD Report, third-party assurance or verification should beobtained.

Completed, the 2022 Sustainability Report has disclosed the scope 1, 2,
and 3 emissions, sustainable linked loans, green credit business amount,and tree planting quantity, all the numbers have been verified by a third
party.

2. By the end of 2025, following the methodology of the Partnership for Carbon Accounting Financials (PCAF), Completed, the 2022 Sustainability Report has disclosed the total emissions
disclose the total carbon emissions and industry classification of major domestic investment portfolios
and industry classification of investment portfolios with high carbon
emissions.
belonging to high carbon emitters.
1. Join the Science Based Targets initiative (SBTi) by the end of 2023 and submit a carbon reduction
roadmap by the end of 2025.

Completed, E.SUN has passed the SBT target review in February 2022.

2. By the end of 2025, engage with more than half of the high carbon emitters in the major domestic
investment portfolios, and encourage them to set net-zero emission targets by 2050; for those who havealready met the aforementioned engagement targets, commit to setting more ambitious targets and strive
to achieve them.

In progress, 209 high carbon emitting enterprises have been identified in
portfolios (200 lending and 9 investment clients). By the end of 2022, 27
engagements have been completed, with a completion rate of 12.9%.

In progress, the total investment in forward-looking economic activities, key
3. Invest more in forward-looking economic activities or industries involved in key strategies listed in the 2050
strategies, and six core strategic industries in 2022 amounts to NTD 62.1
carbon neutrality roadmap of the country than the previous year, and achieve self-set targets.
billion.

Assistance andPromotion

International
Connection

1. By the end of 2023, provide at least one sustainable application or analytical tool that benefits the market
or the public.

Completed, a carbon emission calculator was launched on the official
website in 2022. Enterprises can input data to estimate carbon emissions,compare emissions with the same industry, and use it as a basis for setting
carbon reduction targets and actions. https://www.esunbank.com.tw/bank/corporate/esg/esg/carbon-calculator

2. By the end of 2023, host or participate in at least two experience-sharing seminars for the financial
industry.

Completed, E.SUN has shared sustainable practices with the financial
industry in September and October 2022, covering topics such as SBT
experience and climate risk management.

From January 1, 2022 to the end of 2023, the selected inclusion includes continuous selection into 1
international sustainable evaluation or the addition of 1 important international initiative.

Completed, in 2022, E.SUN was selected into sustainable indices including
DJSI, MSCI ESG, etc., and joined TNFD, SBTi, and RE100 internationalsustainable initiatives.

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Seeking for Common Good

Appendix 5 - Corporate Social Responsibility Best Practice Principles for TWSE/GTSM
Listed Companies
Content

Chapter 1

General Guideline

Reference

Page

Disclose the goal, entity applied to, and principles of best practices.

1 Our Story

12

4.1 Corporate Governance
4.2 Code of Conduct and Ethic

89
96

Chapter 2

Corporate GovernanceRegulate and promote corporate governance.

Chapter 3

Environmental Protection

Regulate practices for sustainability.

6 Seeking Common Good144

3.3 Treating Customers Fairly and Customer Experience
5.3 Employee Care and Friendly Workplace Environment
6.3.1 Supplier Management

78
136
166

Chapter 4

Social Responsibilities

Regulate practices for social welfare.

Chapter 5

Disclosure

Regulate and enhance disclosure of CSR.

About the Report

3

Regulate and improve the existing CSR system.

1.3 Sustainable Governance
4.1 Corporate Governance

1889

Chapter 6

Appendix

Appendix 6 - Taiwan Stock Exchange Corporation Rules Governing the Preparation andFiling of Sustainability Reports by TWSE Listed Companies
Content

Reference

The most recent accounting year has come to a close, and companies described in our Guidelines for Dividing Listed Companies into Industry
Article 2, Paragraph 1,
Categories and Related Adjustments as operating in the food, chemicals, and financial and insurance industry are required to prepare and submit
Subparagraph 1
the Chinese versions of their Corporate Social Responsibility reports.

Page

1 Our Story

12

Article 3

The listed companies which fit the criteria described in Article 2 shall prepare sustainability reports on their previous year's activities based on the
Global Reporting Initiative (GRI) standards published by the GRI standards organization, industry-based disclosures, and other standards relevantto their industry. These reports shall at a minimum disclose all information required by the GRI Core Option, and disclose material economic,
environmental, and social issues identified by the company, their management philosophy, items required to be disclosed, and meet other reporting
requirements.

4.1 Corporate Governance
4.2 Code of Conduct and Ethic

89
96

Article 4 Paragraph 3

Listed companies within the financial and insurance industry shall disclose their management approaches, topic-specific disclosures and theirreporting requirements for operation and business in major topic on data security, financial inclusion, and sustainable finance. Their reporting
requirements shall include at least the following items:(I) Number of data breaches, percentage involving personally identifiable information, and number of account holders affected.
(II) Number and amount of loans outstanding qualified to programs designed to promote development of small business and communities.
(III) Number of participants in financial literacy initiatives provided to the disadvantaged without adequate banking services.
(IV) Products and services designed by individual operating units to create benefits for the environment or society.

3.2.1Expanding Financial Accessibility

72

Article 4 Paragraph 4

The listed companies described in Article 2 shall disclose:(I) Their total number of non-managerial employees, the average and median salaries of full-time non-managerial employees, and how these figures
have changed compared to the previous year.
(II) How the company is managing climate-related risks and opportunities, the real and potential impact of climate issues on the company, how
climate-related risk is identified, evaluated, and managed, and the metrics and goals used to evaluate and manage climate issues.

3.3 Treating Customers Fairly and Customer Experience
5.3 Employee Care and Friendly Workplace Environment
6.3.1 Supplier Management

78
136
166

Article 5

The sustainability reports prepared by companies in the food industry, the listed companies described in Article 2, Paragraph 1, Subparagraph2, companies in the chemicals industry, and companies in the financial and insurance industry, should be provided with an accountant's opinion
from an accounting firm adhering to the standards published by the Accounting Research and Development Foundation. The accountant's opinion
should cover all disclosure items required by Article 4, Subparagraph 1, Item 1 to Item 7, Article 4 Subparagraph 2 Item 1 to item 4, and Article 4,
Subparagraph 3, Item 1 to Item 4.
Listed companies which fit the criteria described in Article 2, Paragraph 1 should upload their sustainability report, and provide a link to thesustainability report published on their company's website, through an online information submission system designated by us before June 30 eachyear. However, companies which have not yet prepared a sustainability report this year, prepared a sustainability report which does not meet GRI
standards, or prepared a sustainability report which has not yet been audited and provided with an accountant's opinion as described in the above
paragraph, may have their report submission deadlines extended to September 30.
Listed companies should establish a set of working procedures for preparing and verifying their sustainability reports, and include these procedures
into their internal controls system.

1.3 Sustainable Governance
4.1 Corporate Governance

18
89

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Journey to Net Zero

Banking for Better

Building Resilience

Appendix 7 - ISO26000 Index
Category
Organizational
Governance

Human rights

Labor Practices

Environment

Fair operating
practices

Consumer issues

Community
involvement anddevelopment

Seeking for Common Good

Appendix 8 - UN Global Compact Index

Issue
Decision-making process and structures

Our People

Reference

Category

1 Our Story
Human
RightsDue diligence

4.9 Human Rights Protection

Human rights risk situations

4.9 Human Rights Protection

Avoidance of complicity

4.1 Corporate Governance

Resolving grievances

5.1 Talent Cultivation and Development

Discrimination and vulnerable groups

4.9 Human Rights Protection

Civil and political rights

4.9 Human Rights Protection

Economic, social and cultural rights

4.9 Human Rights Protection

Fundamental principles and rights at work

5.3 Employee Care and Friendly Workplace Environment

Employment and employment relationships

5.3 Employee Care and Friendly Workplace Environment

Conditions of work and social protection

4.9 Human Rights Protection

Social dialogue

4.9 Human Rights Protection

Health and safety at work

5.3 Employee Care and Friendly Workplace Environment

Human development and training in the workplace

5.1 Talent Cultivation and Development

Prevention of pollution

6.3 Sustainable Operating Environment

Sustainable resource use

6.3 Sustainable Operating Environment

Climate change mitigation and adaptation

2.4 Risk Identification

Protection of the environment, biodiversity andrestoration of natural habitats

6.1 Natural Environment and Biodiversity Preservation

Anti-corruption

4.2 Code of Conduct and Ethic

Responsible political involvement

4.2 Code of Conduct and Ethic

Fair competition

4.2 Code of Conduct and Ethic

Promoting social responsibility in the value chain

1 Our Story

Respect for property rights

4.2 Code of Conduct and Ethic

Fair marketing, factual and unbiased information andfair contractual practices

3.3 Treating Customers Fairly and Customer Experience

Protecting consumers' health and safety

3.3 Treating Customers Fairly and Customer Experience

Sustainable consumption

3.1 Sustainable Finance

Issue

Reference

Businesses should support and respect the protection ofinternationally proclaimed human rights

4.9 Human Rights
Protection

Make sure that we are not complicit in human rights abuses

6.3.1 SupplierManagement

Businesses should uphold the freedom of association and
4.9 Human Rights
the effective recognition of the right to collective bargaining Protection
The elimination of all forms of forced and compulsory labour

4.9 Human Rights
Protection

The effective abolition of child labour

4.9 Human Rights
Protection

The elimination of discrimination in respect of employment
and occupation

4.9 Human Rights
Protection

Businesses should support a precautionary approach toenvironmental challenges

2 Journey to Net Zero

Undertake initiatives to promote greater environmental
responsibility

6 Seeking Common Good

Encourage the development and diffusion ofenvironmentally friendly technologies

3.1 Sustainable FinanceBusinesses should work against corruption in all its forms,
including extortion and bribery

4.2 Code of Conduct andEthic

LabourEnvironment

AntiCorruption

Consumer service, support, and complaint and dispute 3.3 Treating Customers Fairly and Customer Experience
resolution
Consumer data protection and privacy

3.3 Treating Customers Fairly and Customer Experience

Access to essential services

3.3 Treating Customers Fairly and Customer Experience/ 3.4 FinTech and Innovation

Educational and awareness3.3 Treating Customers Fairly and Customer Experience

Community engagement

6.2 Social Inclusion

Education and culture

6.2.2 Academic Education / 6.2.3 Social Participation

Employment creation and skills development

5.1 Talent Cultivation and Development

Technological development

5.1 Talent Cultivation and Development

Wealth and income creation

6.2.4 Humanities and Arts

Health

6.2.4 Humanities and Arts

Social investment

6.2.4 Humanities and Arts

178

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Journey to Net Zero

Banking for Better

Building Resilience

Our People

Seeking for Common Good

Appendix 9 - SDGs Indicators
SDGs

Sub-target

Action4 Quality Education

4.3 Ensure equal and affordable access to education forboth men and women (U)4.5 Ensure access to education for vulnerable groups (U)4.7 Ensure learners acquire knowledge and skills
that promote sustainable development, including
education for sustainable development, cultural
diversity appreciation, etc. (U)
4.4 Enhance youth access to information andcommunication technology (ICT) skills (T)(S) Established 173 E.SUN Libraries.
(S) Caring for Students Project, helping 36,101 people in 3 years.
(S) Rural Elementary School English Hand-in-Hand Program, with a total of 163 classes and benefiting 2,734 rural students.
(S) E.SUN Talent Cultivation Scholarship, awarded to a total of 244 students.
(S) E.SUN Academic Award, awarded to a total of 68 professors.
(S) Rural children's experiential activities such as two-courtyard self-contained field, theater arts experience, walking
through E.SUN Library, digital reading exploration contest, etc., benefiting 6,093 people in 2022.
(C) World cities account for 30.1% of the total.
(C) Cumulatively held 8 AI Talent Open Challenges, with a total of 6,327 teams participating.

8 Sustainable
Business andEconomic Growth

8.2 Enhance economic productivity throughdiversification, technological upgrading, andinnovation (U)8.3 Provide financial services to encourage the growth of
micro, small, and medium-sized enterprises (U)8.8 Promote safe working environments and protect
labor rights, especially for female workers (U)8.10 Provide convenient, diverse, and accessible
financial services (U)8.13 Encourage the development of renewable energy (T)(S) The average benefits spending for non-managerial staff is 1.36 million NTD.
(S) Assisted 25.7 thousand small and medium-sized enterprise customers in obtaining crucial operating funds.
(C) The outstanding loan balance for small and medium-sized enterprises is 507.2 billion NTD.
(C) Invested540 million NTD in research and development, holding 155 related patents (56 inventions, 77 new types, and22 designs).
(C) E.SUN Bank's mobile banking, internet banking, and E.SUN Wallet serve 2.62 million active customers.
(C) Digital transactions account for 67% of the overall ratio.

3 Health and Wellbeing

3.8 Achieve universal health coverage (U)
3.c Increase health financing and support for healthworkforce in developing countries (U)(S) Collaborate with doctors to provide home medical services, serving a total of 2,208 vulnerable groups and residents inremote areas.
(S) Distribute E.SUN Nursing Talent Scholarships, supporting a total of 25 students.
(S) Partner with Taiwan Blood Services Foundation to organize blood donation events, recruiting 5,172 volunteer blood
donors and collecting 7,712 bags of blood.
(S) Install 26 fixed dental treatment chairs in remote elementary schools in Hualien County, Taitung County, Chiayi County,
and Kaohsiung City, serving local students and residents, and encouraging more young dentists to serve in remoteareas and contribute to medical expertise.
(S) Collaborate with the 'National Union of Chinese Medicine Doctors' to organize the first 'Chinese Medicine Festival',promoting knowledge of Chinese medicine and treatment, with 2,000 participants.
(C) 56,000 medical professional credit cards in circulation.

Note 1: (U) United Nations; (T) National Goals
Note 2: (S) Social Goals; (C) Commercial Goals
Note 3: The calculations related to carbon emission reduction, water consumption reduction, and general waste reduction are all based on 2016 as the base year.

179Our Story

SDGs

Journey to Net Zero

Banking for Better

Building Resilience

Sub-target

Our People

Seeking for Common Good

Action13 Climate Actions

13.2 Integrating climate change mitigation
measures into strategic planning (U)13.3 Enhancing the capacity of institutions
and employees to respond to climatechange (U)
13.3.2 Promoting behavioral change among
the public and implementing lowcarbon local actions (T)(S) Wind power generation participation and capacity of 393MW, reducing 420 thousand tons of carbon emissions.
(S) Solar power generation participation and capacity of 732MW, reducing 366 thousand tons of carbon emissions.
(S) No longer providing financing for new coal-fired power plant projects, and not renewing contracts for existing projects after theirterm.
(S) Reducing carbon emissions per unit of revenue by 26%.
(S) E.SUN Bank's co-branded cardholders ride YouBike approximately 360,000 times per month.
(C+S) 44 equator principle projects.
(C) Green loan amount 53.7 billion NTD.

16 Peace and JusticeInstitutions

16.4 Reduce illicit financial flows and combat
all forms of organized crime (U)16.6 Establish effective, accountable, andtransparent systems (U)16.7 Ensure responsive, inclusive,
participatory, and representativedecision-making (U)(S) Successfully assisted in thwarting 371 fraud cases, amounting to approximately NTD 133.52 million (including foreign currency).
(C) A total of 337 employees have obtained the internationally recognized Certified Anti-Money Laundering Specialist (CAMS)
certification.
(C) A total of 1,631 employees have obtained the 'Anti-Money Laundering and Counter-Terrorist Financing Specialist Examination'
certification.
(C) 11 employees have obtained the 'Certified Global Sanctions Specialist (CGSS) certification.
(C) 3 employees have obtained the Certified Transaction Monitoring Analyst (CTMA) certification.

12 Responsible
Consumption and
Production

12.5 Reduce waste generation, promoteresource recovery and reuse (U)12.6 Encourage companies to adopt
sustainable practices and disclosesustainability information (U)12.7 Promote green procurement (U)(S) Waste reduction per unit of revenue decreased by 37%.
(S) Water consumption per unit of revenue decreased by 24%.
(S) E.SUN Bank's credit card system achieved carbon neutrality, offsetting a total of 3,533 tons of carbon dioxide.
(C) Green procurement accumulated to 1.98 billion NTD.
(C) Over 4.29 million zero-carbon credit cards issued.

Note 1: (U) United Nations; (T) National Goals
Note 2: (S) Social Goals; (C) Commercial Goals
Note 3: The calculations related to carbon emission reduction, water consumption reduction, and general waste reduction are all based on 2016 as the base year.

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Our Story

SDGs

Journey to Net Zero

Banking for Better

Building Resilience

Our People

Seeking for Common Good

Sub-target

Action15 Terrestrial
Biodiversity

15.2 Implement sustainable forest
management (U)15.4 Ensure the conservation of mountainecosystems (U)15.5 Protect and prevent the extinction ofendangered species (U)(S) Tree planting project, with a total of 60,000 native Taiwanese tree species planted.
(S) Donated a total of 10 million NTD to Taipei Zoo.
(S) Since 2009, E.SUN has continuously sponsored the Yushan National Park trail for 14 years.
(S) For 13 consecutive years, E.SUN has organized the 'Beautiful Taiwan Smile Yushan' environmental cleanup and beach cleaning event,with over 6,866 participants in 2022.
(S) Collaborating with National Taiwan University to promote the restoration of 28 native species in Nantou that were previously consideredextinct. Supporting the development of a native rice product line in indigenous villages.
(C) A total of 91,000 Taiwan Black Bear co-branded cards and Imperial Sword cards have been issued (a portion of the proceeds isdonated to black bear conservation and tree planting projects).

5 Gender Equality

5.1 Ending discrimination against women(U)
5.4 Valuing the care and domestic workof women (U)5.5 Ensuring women have equal
opportunities to participate indecision-making at all levels (U)(S) E.SUN has been awarded the 'Workplace Gender Equality Index' certification by the Taipei City Government's Department of Labor
for the second time.
(S) Provides maternity leave (60 days), paternity leave (8 days), pregnancy checkup accompaniment and paternity leave (8 days), andchild-rearing leave system (3 years) that are better than legal requirements.
(S) The return-to-work rate after child-rearing is 91.54%.
(C) 40.85% of managers are female.
(C) The average fixed salary for general employees, with women at 98% of men's salary.

17 Global partners

17.3 Provides financial support todeveloping countries (U)17.3 Offers Taiwan scholarships
to outstanding students fromdeveloping countries for studying in
Taiwan (T)(S) E.SUN has provided scholarships to outstanding students from Vietnam, the Philippines, and Indonesia, supporting a total of 33
students.
(S) E.SUN has designed an all-English financial course to cultivate foreign students studying in Taiwan (including those from Vietnam,
Indonesia, Malaysia, Thailand, Honduras, Palestine, and St. Lucia), with a total of 13 students trained in 2022.
(C) E.SUN has provided loans totaling USD 707 million to enterprises in Vietnam, the Philippines, and Indonesia.
(C) E.SUN has provided housing loans totaling USD 329 million in the Philippines.

Note 1: (U) United Nations; (T) National Goals
Note 2: (S) Social Goals; (C) Commercial Goals
Note 3: The calculations related to carbon emission reduction, water consumption reduction, and general waste reduction are all based on 2016 as the base year.

181

Our Story

Journey to Net Zero

Banking for Better

Building Resilience

Our People

Seeking for Common Good

Appendix 10 - TCFD Disclosure Recommendations
Recommended Disclosures

Governance

Strategy

RiskManagement

Metrics andTargets

Chapter

Describe the board's oversight of climate-related risks and opportunities.

2.1 Climate and Environment Governance Structure / 2.4.2 Risk Management Procedures

Describe management's role in assessing and managing climate-relatedrisks and opportunities.

2.1 Climate and Environment Governance Structure / 2.1.1 Policy and Capacity building /2.4.2 Risk Management Procedures

Describe the climate-related risks and opportunities the organization has
identified over the short, medium, and long term.

2.2 Climate Related Risks and Opportunities / 2.3 Opportunity Identification / 2.4 Risk Identification

Describe the impact of climate-related risks and opportunities on theorganization's businesses, strategy, and financial planning.

2.3.1 Response Strategy and Financial Plan / 2.3.2 Climate-related Product and Service Overview /2.4.1 Impact Assessment

Describe the resilience of the organization's strategy, taking into
consideration different climate-related scenarios, including a 2°C or lower
scenario.

2.3.1 Response Strategy and Financial Plan / 2.4.4 Climate Change Scenario Analysis /6.3.1 Supplier Management

Describe the organization's processes for identifying and assessing climaterelated risks.

2.4 Risk Identification / 2.4.1 Impact Assessment

Describe the organization's processes for managing climate-related risks.

2.4.2 Risk Management Procedures / 2.4.3 Identification and Management of
Climate Risks by Industry / 3.1.1 Responsible Lending / 3.1.2 Responsible Investment /6.3 Sustainable Operating Environment

Describe how processes for identifying, assessing, and managing climaterelated risks are integrated into the organization's overall risk management.

2.4.5 Climate Risk Management Measures / 2.4.6 Differentiation Management of Industries /3.1.1 Responsible Lending / 3.1.2 Responsible Investment

Disclose the metrics used by the organization to assess climate related risks
and opportunities in line with its strategy and risk management process.

2.3.1 Response Strategy and Financial Plan / 2.3.2 Climate-related Product and Service Overview /2.4.3 Identification and Management of Climate Risks by Industry / 3.1.1 Responsible Lending /3.1.2 Responsible Investment / 6.3 Sustainable Operating Environment / 6.3.1 Supplier Management

Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas(GHG) emissions, and the related risks.

2.5 E.SUN Carbon Emissions Structure / 2.5.1 Financed Carbon Emissions /2.5.2 From Low Carbon to Zero Carbon, Moving Towards a Net-Zero Transformation by 2050

Describe the targets used by the organization to manage climate-relatedrisks and opportunities and performance against targets.

2.3.1 Response Strategy and Financial Plan / 2.3.2 Climate-related Product and Service Overview /2.5.1 Financed Carbon Emissions / 2.5.2 From Low Carbon to Zero Carbon, Moving Towards a Net-Zero
Transformation by 2050 / 3.1.1 Responsible Lending / 3.1.2 Responsible Investment /6.3 Sustainable Operating Environment

Appendix 11 - 2021 Structure of Financed Emissions
Financed Emissions TimelineBank

Venture Capital

Securities

Financed Emissions (t-CO2e)

3,670,203

889

1,519

Carbon Footprint (t-CO2e/$M)

47.94

9.97

27.96

182

Our Story

Asset Class Distribution

Journey to Net Zero

Banking for Better

Financed Emissions (t-CO2e)

Building Resilience

Our People

Seeking for Common Good

Carbon Footprint (t-CO2e/$M)

WACI (t-CO2e/$M)

Data Quality Score

Equity and bonds

577,10840.17

315.45

1.36

Sovereign bonds

500,040

177.45183.091.08

Business loans

1,906,246

68.24

301,255

609.27

Commercial real estate mortgages

98,20644.72

Mortgages

289,757

10.03

-

4.07

3,672,612

47.88

172.63

3.33

Power generation project finance

Total
Geographical Distribution

3.77
104.67

2.72
4.00

Finance Emissions (t-CO2e)

Carbon Footprint (t-CO2e/$M)

WACI (t-CO2e/$M)

2,773,012

47.93

192.67

N. America & Europe

370,817

44.89

48.26

Hong Kong

185,87091.40

750.63

Others

165,94747.15

127.64

Other Asia

142,989

33.22

58.56

China

33,977

46.63

64.48

Total

3,672,612

47.88

172.63Financed Emissions (t-CO2e)

Carbon Footprint (t-CO2e/$M)

WACI (t-CO2e/$M)

Electricity and Utilities

704,643495.15

1,810.95

Wholesale and Retail trade560,263

100.93

95.84

Manufacturing545,140

78.99

115.25

Sovereignty

500,040

177.45183.09Fossil Fuels and Chemistry309,318163.95619.51

Electronics

197,63242.72

150.89TaiwanIndustry distribution

Others188,098

23.58

50.01

Metal

135,621318.73686.13

Transportation

129,789

84.94

318.70Cement and Glass

59,101

299.36

2,698.27

Finance

53,210

3.68

17.63

3,382,855

70.76

172.63

Total

Note 1: WACI calculations do not include mortgages
Note 2: Weighted Average Carbon Intensity (WACI)WACI=∑ (current value of investment/current portfolio value * issuer's Scope 1 and Scope 2 GHG emissions/issuer's $M revenue)183

Our Story

Journey to Net Zero

Banking for Better

Building Resilience

Appendix 12 - Human Resource Management Indicators
A-1、Employeeworkers and Non-employeeworkers
Employeeworkers

Non-employeeworkers

Year

2020
2021
2022

9,502
9,262
9,109

677
638
694

2020
2021

Note: 1. The total number of employee includes employees work in oversea branches.
2. All employees are permanent and full-time employment, excluding employees who take leave without pay.
3. Non-employee workers are those other than E.SUN's employees, including temporary workers and contractors'
employees, providing services such as information, security, and cleaning.

2022

Number
Proportion of all employees
Number
Proportion of all employees
Number
Proportion of all employees

2020
2021
2022

GRI: 2-7、401-1、401-3、403-9、403-10、405-1、406-1、412-3
SASB: FN-AC-330a.1

Item

Male

Number
Proportion of all employees
Number
Proportion of all employees
Number
Proportion of all employees

5,275
55.51%
5,110
55.17%
5,102
56.01%

A-4、Employee educational level distribution
Under 293,679
38.72%
3,291
35.53%
2,995
32.88%

30-50

5,449
57.34%
5,540
59.82%
5,592
61.39%

Total

Over 51

374
3.94%
431
4.65%
522
5.73%

Note: 1.The total number of employee includes employees work in oversea branches.
2.All employees are permanent and full-time employment, excluding employees who take leave without pay.

Total

Female4,22744.49%
4,152
44.83%
4,007
43.99%

9,502
100.00%9,262
100.00%9,109
100.00%Note: 1.The total number of employee includes employees work in oversea branches.
2. All employees are permanent and full-time employment, excluding employees who take leave without pay.

A-3、Employee age distribution
Item

Seeking for Common Good

A-2、Employee gender distribution

Year

Year

Our People

Year

9,502
100.00%9,262
100.00%9,109
100.00%

2020
2021
2022

Item
Number
Proportion of all employees
Number
Proportion of all employees
Number
Proportion of all employees

Master andabove

Bachelor

2,520
26.52%
2,503
27.02%
2,457
26.97%

6,551
68.94%
6,351
68.57%
6,249
68.60%

Junior High school
collegeand under
377
3.97%
363
3.92%
362
3.97%

54
0.57%
45
0.49%
41
0.45%

Total
9,502
100.00%9,262
100.00%9,109
100.00%Note: 1.The total number of employee includes employees work in oversea branches.
2. All employees are permanent and full-time employment, excluding employees who take leave without pay.

A-5、Employee position distribution
Year

Item

Managerial employees

Number
Proportion of all employees
Number
Proportion of all employees
Number
Proportion of all employees

2020
2021
2022

Note: 1. The total number of employee includes employees work in oversea branches.
2. All employees are permanent and full-time employment, excluding employees who take leave without pay.
3. Managerial employees refer to those marked as managerial employees or above in our human resources system.

Total

Non-managerial employees

2,723
28.66%
2,767
29.87%
2,906
31.90%

6,779
71.34%
6,495
70.13%
6,203
68.10%

9,502
100.00%9,262
100.00%9,109
100.00%A-6 - Nationality share of total employees
Year
2020
2021
2022

Item

Number
Proportion of all employees
Number
Proportion of all employees
Number
Proportion of all employees

Taiwan Hong Kong Macao Vietnam Cambodia Thailand

9,219
97.02%
8,980
96.96%
8,800
96.61%

123
01.29% 0.00%
128
01.38% 0.00%
132
11.45% 0.01%

36
0.38%
38
0.41%
47
0.52%

0
0.00%
0
0.00%
1
0.01%

0
0.00%
0
0.00%
1
0.01%

Singapore Myanmar
34
0.36%
33
0.36%
38
0.42%

Note: 1. The total number of employee includes employees work in oversea branches.
2. All employees are permanent and full-time employment, excluding employees who take leave without pay.
3. The numbers are decided based on the employees' nationality.

184

36
0.38%
30
0.32%
30
0.33%

USA

16
0.17%
20
0.22%
19
0.21%

China Australia Malaysia

18
0.19%
15
0.16%
18
0.20%

7
0.07%
8
0.09%
8
0.09%

7
0.07%
7
0.08%
10
0.11%

Japan South Korea
4
0.04%
3
0.03%
3
0.03%

0
0.00%
0
0.00%
1
0.01%

Germany
1
0.01%
0
0.00%
0
0.00%

French
1
0.01%
0
0.00%
0
0.00%

Total
9,502
100.00%9,262
100.00%9,109
100.00%Our Story

Journey to Net Zero

A-7 - Nationality share in management positions
Item
TaiwanHong Kong
USA
VietnamSingapore
Australia
China
Myanmar
Japan
Total

2019

Proportion of all
managerial employees

98.84%
0.66%
0.15%
0.00%
0.15%
0.15%
0.00%
0.04%
0.04%
100.00%2020

Proportion of all
managerial employees

98.20%
0.70%
0.26%
0.22%
0.22%
0.15%
0.07%
0.11%
0.07%
100.00%Banking for Better2021

Proportion of all
managerial employees

97.98%
0.90%
0.29%
0.22%
0.18%
0.14%
0.11%
0.11%
0.07%
100.00%2022

Building Resilience

Seeking for Common Good

B - Distribution in regard to minorities
Year

Proportion of all
managerial employees

97.94%
0.89%
0.28%
0.24%
0.24%
0.14%
0.10%
0.10%
0.07%
100.00%

Our People

2019
2020
2021
2022

Item

Number
Proportion of all employees
Number
Proportion of all employees
Number
Proportion of all employees
Number
Proportion of all employees

People with disability

46
0.50%
45
0.47%
47
0.51%
43
0.47%

LGBTQI+
2
0.02%
3
0.03%
1
0.01%

Indigenous People

35
0.38%
41
0.43%
39
0.42%
37
0.41%

Note:1.The total number of employee includes employees work in oversea branches.
2.All employees are permanent and full-time employment, excluding employees who take leave without pay.
3.LGBTQI+ refers to homosexual, bisexual, transgender, queer, and intersex; the number in each column is calculated throughdividing the total number of married people by the number of people in same-sex marriage.

Note:1. The total number of employee includes employees work in oversea branches.
2. All employees are permanent and full-time employment, excluding employees who take leave without pay.
3. The numbers are decided based on the employees' nationality.

C - Female employee position distribution
Item

2020

STEM-related positions

31.43%All management positions

38.45%

Junior management positions

42.04%

Top management positions

20.61%

Management positions in revenue-generating functions

35.64%

2021

2022

30.67%

31.49%

39.39%

40.85%

43.20%

45.03%

21.56%

22.08%

40.72%

41.20%

Note:1. Junior management employees refer to those marked as managerial employees(managers and above are not included) in our human resources system.
2. Top management employees refer those marked as managerial employees(managers and above) in our human resources system.
3. Revenue-generating function employees refer to everyone taking the lower-managerial positions and above of each product line's sales business.
4. STEM-related positions employees refer to employees working in ﬁntech-related departments.
5. E.SUN set speciﬁc goals by 2025:the share of women in total workforce is 55% and above, all management positions reaches 41%, junior management positions reaches 45%.The share of women in management positions in revenue-generating functions reaches
42%, STEM-related positions reaches 32%.

D-1 - New recruits gender distribution
Year
2019
2020
2021
2022

Item
Number
New Employee Ratio
Number
New Employee Ratio
Number
New Employee Ratio
Number
New Employee Ratio

D-2 - New recruits age distribution
Male

Female587
14.04%
469
11.10%
339
8.16%
377
9.41%

940
18.53%
709
13.44%
377
7.38%
585
11.47%

Note: 1. The new employee ratio is [(the number of new employees in the year according to each category)/(the total number of
employees at end of year according to each category)]*100%.
2. Average hiring cost per person:NT$18,005 in 2019, NT$23,873 in 2020, NT$31,978 in 2021, NTD$26,389 in 2022.

Year
2019
2020
2021
2022

Item
Number
New Employee Ratio
Number
New Employee Ratio
Number
New Employee Ratio
Number
New Employee Ratio

Under 2930-50

Over 51

1,421
36.88%
1,103
29.98%
646
19.63%
863
28.81%

104
2.04%
73
1.34%
70
1.26%
98
1.75%

2
0.66%
2
0.53%
0
0.00%
1
0.19%

Note: The new employee ratio is [(the number of new employees in the year according to each category)/(the total number of
employees at end of year)]*100%.

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D-3 - New recruits position distribution

D-4 - New recruits national distribution

Year Item

Year Item

TaiwanNumber
New Employee Ratio
Number
2020
New Employee Ratio
Number
2021
New Employee Ratio
Number
2022
New Employee Ratio

1,439
15.99%
1,084
11.76%
647
7.20%
829
9.42%

Number
New Employee Ratio
Number
2020
New Employee Ratio
Number
2021
New Employee Ratio
Number
2022
New Employee Ratio
2019

Managerial
employees

Non-managerial
employees

41
1.49%
31
1.14%
17
0.61%
32
1.10%

1,486
22.84%
1,147
16.92%
699
10.76%
930
14.99%

Note: 1.The new employee ratio is [(the number of new employees
in the year according to each category)/(the total number of
employees at end of year.)]*100%.
2.Managerial employees refer to those marked as managerial
employees or above in our human resources system.

2019

Hong
Kong

Our People

Macao Vietnam Cambodia Thailand Singapore Myanmar

25
022.52%
0.00%
43
034.96%
0.00%
35
027.34%
0.00%
71
1
53.79% 100.00%

7
22.58%
822.22%
5
13.16%
16
34.04%

0
0
0.00%
0.00%
0
0
0.00%
0.00%
0
0
0.00%
0.00%
1
1
100.00% 100.00%

14
56.00%
14
41.18%
12
36.36%
20
52.63%

19
54.29%
11
30.56%
5
16.67%
5
16.67%

Seeking for Common GoodUSA
2
12.50%
5
31.25%
525.00%
2
10.53%

China Australia Malaysia
10
58.82%
844.44%
4
26.67%
844.44%

4
57.14%
1
14.29%
1
12.50%
0
0.00%

South
Germany
Korea

Japan

6
1
0
0
0
85.71% 33.33%
0.00%
0.00%
0.00%
1
1
0
1
1
14.29% 25.00%
0.00% 100.00% 100.00%
2
0
0
0
0
28.57% 0.00%
0.00%
0.00%
0.00%
6
1
1
0
0
60.00% 33.33% 100.00%
0.00%
0.00%

Note: 1.The new employee ratio is [(the number of new employees in the year according to each category)/(the total number of employees at end of year according to eachcategory)]*100%.
2.The numbers are decided based on the employees' nationality.

E - Turnover rate
Item

2019

Turnover rate

2020

8.75%

Voluntary turnover rate
Data coverage (% of employee)

2021

6.45%

2022

8.67%

10.33%

8.45%

6.16%

8.11%

9.28%

100.00%100.00%100.00%100.00%Note: 1. The turnover rate is calculated with all leaves due to voluntary termination, dismissal/severance, retirement, or death taken into consideration.
2. The voluntary turnover rate for 2022 was calculated by excluding 3 death, 63 dismissal/severance, and 30 retirement cases.

F-1 - Turnover rate gender distribution

F-2 - Turnover rate age distribution

Year

Year

2019
2020
2021
2022

Item
NumberTurnover rate
NumberTurnover rate
NumberTurnover rate
NumberTurnover rate

Male

Female

366
8.76%
281
6.65%
370
8.91%
450
11.23%

444
8.75%
332
6.29%
433
8.47%
491
9.62%

Note: The turnover rate is [(the number of total employees resignedin the year according to each category)/(the total number of
employees at end of year according to each category)]*100%.

2019
2020
2021
2022

Item
NumberTurnover rate
NumberTurnover rate
NumberTurnover rate
NumberTurnover rate

F-3 - Turnover rate position distribution

Under 2930-50

Over 51460
11.94%
332
9.02%
439
13.34%
499
16.66%

323
6.34%
258
4.73%
332
5.99%
404
7.22%

27
8.88%
23
6.15%
32
7.42%
38
7.28%

Note: The turnover rate is [(the number of total employees resigned in the year
according to each category)/(the total number of employees at end of year
according to each category)]*100%.

F-4 - Turnover rate nationality distribution
Year
2019
2020
2021
2022

Item
Number

Year
2019
2020
2021
2022

Item

Managerial employees Non-managerial employees

NumberTurnover rate
NumberTurnover rate
NumberTurnover rate
NumberTurnover rate

141
5.13%
91
3.34%
128
4.63%
176
6.06%

669
10.28%
522
7.70%
675
10.39%
765
12.33%

Note: 1.The turnover rate is [(the number of total employees resigned in the year
according to each category)/(the total number of employees at end ofyear according to each category)]*100%.
2. Managerial employees refer to those marked as managerial employees
or above in our human resources system.

TaiwanHong Kong

VietnamSingapore

Myanmar

USA

China

Australia

Malaysia

Japan

Germany

787

8

3

2

7

0

1

0

1

1

0

French0Turnover rate

8.74%

7.21%

9.68%

8.00%

20.00%

0.00%

5.88%

0.00%

14.29%

33.33%

0.00%

0.00%

Turnover rate

6.10%

20.33%

5.56%

8.82%

25.00%

25.00%

33.33%

14.29%

14.29%

0.00%

0.00%

0.00%

Turnover rate

8.33%

15.63%

5.26%

30.30%

33.33%

5.00%

46.67%

0.00%

28.57%

33.33%

100.00%100.00%Turnover rate

9.76%

38.64%

6.38%

31.58%

13.33%

15.79%

33.33%

0.00%

20.00%

33.33%

0.00%

0.00%

NumberNumberNumber

562

748

859

25

20

51

2

2

3

3

10

12

9

4

10

1

4

3

6

7

6

1

0

0

1

2

2

Note: 1. The turnover rate is [(the number of toal employees resigned in the year according to each category)/(the total number of employees at end of year according to each category)]*100%
2. The numbers are decided based on the employees' nationality.

186

French

0

1

1

0

1

0

0

1

0

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Seeking for Common GoodG - Managerial and non-managerial employees age/gender distribution
Item

Under 29

Percentage

30-50

Percentage

Over 51

Percentage

Total

Percentage

Managerial employees
Male

0

0.00%

244

59.08%

169

40.92%

413

77.92%

Female

0

0.00%

68

58.12%

49

41.88%

117

22.08%

Total

0

0.00%

312

58.87%

218

41.13%

530

100%

Non-managerial employees
Male

1,082

30.11%

2,375

66.08%

137

3.81%

3,594

41.89%

Female1,913

38.38%

2,905

58.27%

167

3.35%

4,985

58.11%

Total

2,995

34.91%

5,280

61.55%

304

3.54%

8,579

100.00%Note: Managerial employees refer to managers and above.

H - Statistics of unpaid parental leaves and reinstatements
Item

Total

Male

Female(1) Number of employees that applied for parental leave in 2022

13

198

211

(2) Number of employees granted parental leave in 2022

384

561

945

(3) Number of employees whose parental leave ended in 2022 (A)

15

186

201

(4) Number of employees that returned from parental leave in 2022 (B)

11

173

184
91.54%(5) Return rate (B/A)

73.33%

93.01%(6) Number of employees that returned from parental leave in 2021 (C)

5

137

142

(7) Number of employees that have been in service for a year after returning from parental leave in 2021 (D)

4

125

129

80.00%

91.24%

90.85%(8) Retention rate (D/C)

Note: 1. Employees not returning from parental leave did so due to personal reasons.
2. According to Article 16 of Act of Gender Equality in Employment and Article 36 of E.SUN Employee Handbook, employees who have been in service for 6 months may apply for unpaid parental leave before their children reach theage of three years old. All employees are qualiﬁed for parental leave.

I - Occupational sick leave
Item

Number of employeesthat applied for
occupational sick leave

Number of days that
employees applied for
occupational sick leave

Occupational
injury rate

Number of employees Number of days that Number of employeesthat applied for employees appliedthat applied forsick leavefor sick leavepersonal leave

Number of days
that employees
applied for
personal leave"

Total
Absentee rateworking days

Number of lost
workdayMale

46

178.502.54

401

1,959.70

124

207.30997,743

0.24%

9.84

Female74456.504.08

772

5,120.30

217403.001,270,398

0.47%

25.16

Total

120

635.006.61

1173

7080.00

341

610.302,268,141

-

35.00

Note:1. Total working hours = 18,145,128 (Total number of employees *Daily working hours *Total working days in a year).
2. Total working days = 2,268,141 (Total number of employees *Total working days in a year).
3. Lost workday is calculated based on GRI's 1-million-hour standard. Lost workday rate = Number of occupational sick leave *1,000,000 / Total working hours.
4. The total number of employees involved in incidence of occupational diseases and the number in death or disability incurred at work are both zero.
5. No overseas employee took any occupational injury leave.
6. Occupational injury rate = (Number of employees on occupational sick leave *1,000,000 / Total working hours)
7. Absentee rate in male employees = (Number of occupational sick days taken by male employees + sick days taken by male employees + personal days taken by male employees) / Total working days for male.
8. Absentee rate in female employees = (Number of occupational sick days taken by female employees + sick days taken by female employees + personal days taken by female employees) / Total working days for female.
9. The Australian law now stipulates that people can use sick/ carer's leaves in hourly increments, and therefore days of sick leave are calculated to 2 decimal places

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J - Absentee rate

Seeking for Common GoodK - Epidemic prevention

Item

2019

2020

2021

2022

Item

Absentee rate (%)

0.29

0.31

0.29

0.37

Health management leave

Data coverage (% of employee)

Our People

100%

100%

100%

100%

Note: 1. Absentee rate = (Number of days that employees applied for occupational sick leave + Number of employeesthat applied for sick leave + Number of days that employees applied for personal leave) / Total working days.
Excluding employees who take leave without pay and those who resign.
2. The goal of absentee rate: below 0.45% in 2022, below 0.45% in 2023.

Number of employees

Number of days

195

396.90Quarantine leave

6,286

38,175.60

Vaccination leave

8,170

15,739.30

Epidemic care leave

337

1,192.30

L - Salary and beneﬁts for full-time non-managerial employees
Item

2020

2021

2022

Growth compared to the previous year

Number of employees

8,109

8,135

7,775

-4.43%

Average salary (NT$ thousand)

1,091

1,168

1,210

3.60%

Median salary (NT$ thousand)

1,015

1,069

1,113

4.12%

Average spending on employee beneﬁts (NT$ thousand)

1,338

1,405

1,356

-3.49%

Note: 1. The ﬁgures are calculated by excluding employees acting as management as deﬁned in Circular No. 920001301 issued by Ministry of Finance (MoF).
2. Average salary and median salary: The number and average salary of full-time non-managerial employees are calculated in accordance with Paragraph 31, Article 3 of the Taiwan Stock Exchange Corporation Rules Governing
Information Filing by Companies with TWSE Listed Securities and Offshore Fund Institutions with TWSE Listed Offshore Exchange-Traded Funds.
3. Average spending on employee beneﬁts: The average spending on the beneﬁts of non-managerial employees is calculated on the basis of number of people and employee beneﬁt expense as reported in the ﬁnancial statement andafter excluding managerial employees.

M - Employee beneﬁts more favorable than statutory requirements
Item
Outstanding Children Award

2020

2021

2022

Number of employees

Amount (NT$)

Number of employees

Amount (NT$)

Number of employees

Amount (NT$)

126$1,131,600

136$1,261,200

148$1,571,800

Family care

13

─

7

─

7

─

Marriage subsidies

285$2,640,000

276$2,537,000

322$3,035,000

Birth subsidies

382$1,170,000

345$1,041,000

334$1,032,000

E.SUN Baby Development Fund

333 (338 children)$33,800,000354 (359 children)$35,900,000

318 (328 children)$32,800,000

Education subsidies for employees' children

2,837$6,427,000

3,018$6,774,000

3,420$7,685,000

Medical subsidies for employees, their spouses, and children

1,456$24,879,743

1,379$21,458,388

1,760$33,325,158

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Seeking for Common Good

N、Human rights control plan and implementation results
Stakeholder

Issue

Gender equality
and sexual
harassment

Forced laborand overtime

Risk
identiﬁcation
ratio

Total

5.24%

1. Established the "Guidelines for the Establishment of Gender Equality
Committee for E.SUN FHC and its Subsidiaries," the "Rules and Procedures for
Sexual Harassment Prevention, Complaint and Punishment of E.SUN FHC and
Its Subsidiaries," and the "Plans for Preventing Unlawful Infringement While
Performing Duties at Work."
2. Included SDG "gender equality" as a specific target.
3. Talent selection policies are based on human rights and equality and incompliance with the government's labor laws and regulations, and interview
committee members are required to consider diverse perspectives.
4. Included the promotion of gender equality and friendly workplace inmandatory training programs.

8.84%

1. Formulated leave and overtime related regulations according to the Labor
Standards Act.
2. Added reminder function to the attendance system.
3. Promoted the "annual leave" program to encourage employees to plan more
adequate vacations so as to enhance their physical and mental health andpromote work-family balance.

Employee

15.57%

Occupationalsafety1.49%

Labor rights

0.00%

Supplier

1. Specialized occupational safety and health unit that employs dedicatednurses and safety personnel responsible for formulating and planning safety
and health matters.
2. Four major protective plans are implemented, and questionnaires are
distributed to different groups. Based on the answers, doctors from NTUH
analyze and conduct follow-up interviews, and the plan contents areincorporated into educational training courses.
3. Included "Traffic safety promotion" as a mandatory course in the educational
training program, and employees involved in accidents are required to receive
traffic safety education training again.
4. Monitored the operation environment of carbon dioxide and illumination twicea year.
5. Provided bright lighting equipment, added reminder slogans, installed
electronic surveillance equipment or provided 24-hour security in specificareas such as parking lots, entrances and exits.

0.00%

OccupationalsafetyPossibilityof impact

Risk mitigation measures

0.00%

1. Suppliers are required to sign the "Statement of Commitment to Human Rights
and Environmental Sustainability" and regularly review the human rights andenvironmental sustainability clauses and penalty announcements.
2. Use the "Corporate Social Responsibility Self-Assessment Form for Suppliers"
to determine the risk of suppliers with respect to labor rights, occupationalsafety, and environmental protection, and irregularly visit suppliers according
to the "Supplier Visit Questionnaire."
3. Formulated the "E.SUN FHC Sustainable Procurement Policy" in accordancewith the Sustainable Procurement Guidance (ISO 20400), taking into accountthe social, economic and environmental impacts caused by procurement
practices, and requiring suppliers to jointly abide by international humanrights policies.

189

Total

Impact compensation measures

0%

1. Set up sexual harassment complaint channels,
including hotlines, fax, and gender equality
and workplace bullying complaint mailboxes.
2. The Sexual Harassment Complaints Review
Committee upholds the principles ofobjectivity, fairness, and professionalism
when conducting investigations, and imposes
punishments as deemed appropriate basedon the review results.
3. Provided consulting services under the
Employee Assistance Program (EAP).

0%

1. Provided employees with adequate overtimepay.
2. Where supervisors undergo personnel
evaluation, their respective departments may
not receive an excellent performance rating.

0.21%

1. Adopted internal occupational hazard
reporting process and set up a dedicated unit
to implement care and follow-up.
2. Actively provided information on groupinsurance and labor insurance and assistancewith applying for related subsidies.
3. Hired health professionals to conduct
reinstatement assessments and provide
suitable work adjustments and arrangements.
4. Provided consulting services under the
Employee Assistance Program (EAP).

0.21%

2.13%

4.26%

2.13%

1. Held supplier communication meetings
to raise awareness of corporate social
responsibility.
2. Requested high-risk suppliers to provide
awareness training on related issues.
3. Periodically visited suppliers of potential risk
to review their improvement status.
4. Adjusted the amount of materials purchasedfrom suppliers or terminated contractual
relations, depending on the sanction imposedon a supplier.

Implementation
ratio ofcompensation
measures100%

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Stakeholder

Issue

Servicequality andcustomerrights

Personal
information
protection

Journey to Net ZeroRisk
identiﬁcation
ratio

Total

Building Resilience

Possibilityof impact

Risk mitigation measures

6.62%

1. Established the "Total Quality Management Committee" and upgraded the "Fair
Customer Treatment Task Force" to the "Fair Customer Treatment Promotion
Committee" to oversee the planning of E.SUN's Fair Customer Treatment
Principles.
2. Established a procedure for handling consumer dispute cases, which speciﬁes
the time limit for handling and the allocation of responsibilities. Complaint
management of E.SUN was certiﬁed by the ISO 10002 Complaints Quality
Management System.
3. Included service quality and customer complaint management in annual
performance evaluation of business units to raise the overall service awarenessof various units.
4. E.SUN values customer feedback and regularly holds "VOC Proposal Meetings"
to improve customer experience based on common customer feedback.
5. All employees participated in training on fair customer treatment, customer
service, fraud prevention, and information security protection.

4.05%

1. Established the "Personal Information Protection Task Force" responsible
for establishing personal information protection regulations, which include
management measures for collection, handling, and use of personal information,
and also established the "E.SUN Financial Holding Co., Ltd. and Subsidiaries
Principles on Gathering, Processing and Use of Personal Information."
2. Announced the "Statement on Customer Information Conﬁdentiality," "E.SUN
Financial Holding Co., Ltd. and Subsidiaries Personal Information Management
Policy," and "E.SUN Financial Holding Co., Ltd. and Subsidiaries Principles on
Gathering, Processing and Use of Personal Information" on the ofﬁcial website.
3. Established the E.SUN FHC Information Security Management Committee tosupervise information security management and review material issues related to
information security throughout the group.
4. The information security management system (ISMS) obtained ISO 27001
certiﬁcation, and the credit card acquiring system obtained PCI DSS certiﬁcation.
5. Established the "SOC Proactive Cybersecurity Monitoring Center" in 2021 andbegan to link cybersecurity defense equipment, automate threat intelligence, andcultivate SOC team members' incident response and investigation skills in 2022
to continuously optimize the SOC security monitoring center. This will enhancethe efﬁciency of handling cybersecurity incidents and the ability to manage
cybersecurity threats, achieving the goal of collaborative defense in ﬁnancial
cybersecurity monitoring.

Customer

11.88%

Human rights
practices ofcorporate
customers

Banking for Better

1.21[Responsible Lending]
1. Each loan application must be subject to ESG audits on the applicant and antimoney laundering investigations.
2. Adopt the fourth edition of the Equator Principles (EP IV) framework to assess
the climate change, human rights, and biodiversity risks associated with projectﬁnancing, and strengthen environmental and social risk management abilities.
[Responsible investment]
1. Adopt ESG indicators of domestic and overseas impartial institutions as
investment review standards, and give priority to enterprises with low or medium
ESG risks.
2. Establish "Guidelines for Managing Sustainable Investments in Negotiable
Securities," establish management mechanisms for companies with high ESG
risk, and avoid doing business with companies that direct impact the environment
or society. For companies that may potentially impact the environment andsociety, we require due diligence and careful evaluation when they submit aninvestment application, and may only approve the application after determining
there is no material negative impact on ESG and sustainability.

190

Total

Our People

Seeking for Common Good

Impact compensation measures

0.41%

1. Set up a fair customer treatment section on the ofﬁcial website to fully disclose
the variety of complaint channels available to customers.
2. Analyze the root cause of customer complaints, discuss improvement plans
and track improvements, and periodically summarize customer complaints for
the Board of Directors.
3. The "Consumer Dispute Resolution Principles" was approved by the boardof directors, specifying dispute handling procedures, timeline, and follow-up
methods.
4. Promoted fraud prevention through various channels such as its ofﬁcial
website, mobile banking, social media platforms, and email. Strengthenedtransaction veriﬁcation in common fraud scenarios to protect customer assets.
5. Monitored abnormal transactions and provided mobile push notiﬁcations
through the E.SUN Mobile Banking APP.

0%

1. Established the "E.SUN Financial Holding Co. Ltd. And Subsidiaries
emergency Response Rules for Personal Information Incidents."
2. Established an Emergency Response and Crisis Management Team to handle
compensation measures when a major personal information infringement
incident occurs.
3. Periodically organize education, training, and promotion, and conduct
information system disaster backup drills.
4. Continued to purchase information security insurance 2022 to reduce losses
and impact of business suspension.

0.41%

0%

[Responsible lending]
1. Regarding credit extension targets on which severe penalties were imposeddue to human right issues, direct/indirect credit check is conducted tounderstand the impact of the reported matter on corporate operations, andimprovement is requested.
2. Credit extended to such targets is adjusted based on the degree of inﬂuence.
In severe cases, these targets are asked to settle their debt in advance andare blacklisted.
[Responsible investment]
1. In accordance with the "Guidelines for Managing Sustainable Investments
in Negotiable Securities," if the invested company undergoes a signiﬁcantchange in its business policy and there is a possibility of signiﬁcant proposals
that violate governance, environmental, and social concerns, the investor
should verify the issue with the company or interact with the management
team to decide on an appropriate response.
2. Based on the "Sustainable Finance Policy" and "Guidelines for Managing
Sustainable Investments in Negotiable Securities," the equity and ﬁxed
income investment positions of listed and OTC securities are regularly
reviewed. If there is a violation of ESG risks that makes the investment
position not compliant with relevant investment regulations and without a clear
improvement plan, the investment position will gradually be reduced.
3. Investment cases with potential controversial issues are periodically reviewed.
If signiﬁcant abnormal issues are discovered, the investor will examine andinteract with the invested company, carefully evaluate the investment position,and regularly monitor it.

Implementation
ratio ofcompensation
measures100%

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Appendix 13 - Sustainable Operating Environment Indicators
Category

Scope 1

Scope 2

Scope 3

Energy

Water

2019

2020

2021

2022

Carbon emission (ton)

2,455

2,399

1,857

1,844

Per capita (ton/person)

0.27640.2555

0.19890.2025

Carbon emission per unit of revenue (ton/NT$M)

0.04500.0426

0.03310.0336

Data coverage ratio

100%

100%

100%

100%

Target of carbon emission (ton)

3,116

3,131

2,298

2197

Carbon emission Location-based (ton)22,651

22,64022,656

24,403

Carbon emission Market-based (ton)22,44322,29922,105

20,294Per capita (ton/person)

2.52682.37532.36802.2280Carbon emission per unit of revenue (ton/NT$M)

0.4116

0.39640.38180.3703

Data coverage ratio

100%

100%

100%

100%

Target of carbon emission (ton)23,20623,321

21,362

20,426

Carbon emission (ton)968,508

4,763,982

3,721,793

3,954,479

Data coverage ratio

12.50%

73.69%

74.09%

76.12%

Total consumption（MWh）

49,53551,71350,66953,309Total consumption（GJ）

178,326

186,159

182,408

191,913

Total non-renewable energy consumption（MWh）

49,14551,04349,57045,313

390

670

1,099

7,996

-

-

48,89946,755Per capita (GJ/Person)

20.07719.829

19.54

21.07

Per unit of revenue (Kwh/NT$ thousand)0.90850.91940.8752

0.9727

Non-renewable energy consumption target（MWh）

Per unit of revenue (GJ/NT$M)

3.271

3.310

3.151

3.502

Data coverage

100%

100%

100%

100%

Total water use (ton)244,804

264,917

238,715

248,326

Total water use (megaliter)

244.804

264.917238.715

248.326

Per capita (ton/person)

27.56

28.22

25.57

27.26

Per unit of revenue (ton/NT$M)

4.49004.7097

4.12314.5310

Data coverage

Waste

GRI: 305-1、305-2、305-3、305-4、306-2

Item

Total renewable energy consumption（MWh）

100%

100%

100%

100%

Total water use target (ton)266,517259,940

266,014

256,758
692

Total waste generated (ton)

620

595

698

Total waste reused / recycled / sold (ton)

185

224

210

203

Total waste disposed (ton)

435

370

488

489

48.94

39.45

52.30

53.70

Waste (kg/person)

Seeking for Common Good

Remarks
E.SUN's scope 1 target is, base on 2020, 42% deduction ofabsolute carbon emission on 2030, equal to 4.2% carbon
emission deduction per year. Our target of scope 1 carbon
emission in 2022 is 2,197 ton.

E.SUN's scope 2 target is, base on 2020, 42% deduction ofabsolute carbon emission on 2030, equal to 4.2% carbon
emission deduction per year. Our target of scope 2 carbon
emission in 2022 is 20,426 ton.

Percentage of examined and estimated data is 95%, 5% in2019 to 2022.

Waste per unit of revenue (kg/NT$M)

7.97

6.58

8.43

8.93

Data coverage

100%

100%

100%

100%

625.922498.264559.883

489.479

8,882

9,388

9,335

9,109

-

54,522,618

56,249,044

57,897,440

54,805,919-

Target amount of waste (ton)Number of employees
Revenues (NT$ thousand)Note: 1. 1 GJ = 277.778 kWh
2. In the Scope 3 carbon emissions for the year 2022, the investment and ﬁnancing section is self-assessed, while the other data has been veriﬁed by a third-party certiﬁcation statement.

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2022 Greenhouse Gas Emissions
Total emissions 3,980,725（Metric Tons CO2e）
Subtotal (Metric tons CO2e)

CO2

CH4

N 2O

HFCs

PFCs

SF6

NF3

Scope 1: Direct greenhouse gas emissions and removal

1,844.1801

979.4163

360.2221

29.2313475.3105---

Indirect emissions of CO2e in metric tons 3,978,882

Subtotal (Metric tons CO2e)

CO2

CH4

N 2O

HFCs

PFCs

SF6

NF3

Scope 2: Indirect GHG emissions from imported energy

24,402.7317

24,402.7317

-

-

-

-

-

-

Direct emission of CO2e in metric tons 1,844.1801

-

-

-

-

-

-

-

-

154

154

-

-

-

-

-

-

2. Capital Goods

50,42250,422

-

-

-

-

-

-

3. Fuel-and-energy-related-activities (not included in Scope 1 or 2)

4,497

4,497

-

-

-

-

-

-

Scope 3 (1): Other indirect emissions
1. Purchased Goods and Services

0

0

-

-

-

-

-

-

5. Waste generated in operations

4. Upstream transportation and distribution

175

175

-

-

-

-

-

-

6. Business travel

60

60

-

-

-

-

-

-

7. Employee commuting

0

0

-

-

-

-

-

-

8. Upstream leased assets

0

0

-

-

-

-

-

-

9. Downstream transportation and distribution

0

0

-

-

-

-

-

-

10. Processing of sold products

0

0

-

-

-

-

-

-

11. Use of sold products

624

624

-

-

-

-

-

-

12. End of life treatment of sold products

83

83

-

-

-

-

-

-

13. Downstream leased assets

0

0

-

-

-

-

-

-

14. Franchises

0

0

-

-

-

-

-

-

15. Investments

3,898,464

3,898,464

-

-

-

-

-

-

Other upstream

0

0

-

-

-

-

-

-

Other downstream

0

0

-

-

-

-

-

-

Note:
1. Scope 1 emission mainly includes car fuel, diesel for power generator and natural gas; scope 2 emission mainly includes electricity; and scope 3 emission mainly includes employee travel, waste, product procurement emissions, capitalcommodity emissions, and product usage emissions.
2. Scope 1, Scope 2 and Scope 3 air travel includes all branches in Taiwan and overseas. Scope 3 waste and land travel inventory includes all branches in Taiwan.
3. The values for petroleum and diesel emissions are in accordance with the Greenhouse Gas Index Management Solution (version 6.0.4) published by the Environmental Protection Administration.
4. Electricity parameter is 0.509 kg CO2e/kWh by Energy Bureau, MOEA 2022.
5. According to ISO 14064-1 Greenhouse gases Part 1: Speciﬁcation with guidance, emission = activities*emission parameter*GWP.
6. The Global Warming Potenttial(GWP) of refrigerants to the IPCC 2021 Sixth Assessment Report.
7. GHG inventory is performed based on operational control.
8. The carbon emissions from investment and ﬁnancing in item 15 are self-assessed, while the other parts have obtained third-party veriﬁcation statements.

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Appendix 14 - Economic value distributed indicators
A. Spending on trade associations and other tax-exempt groups
Institution

Amount（NT$ Thousand） Note

The Bankers Association of The Republic Of China

9,062 65% for financial studies and training funds, 35% for The Bankers association fee.

Trust Association of the Republic of China

3,385 51% for annual membership fee and 49% for training registration fee.

Taipei Foundation Of Finance

3,287 100% for training and external training fee.

Taipei Exchange

1,191 Including 86% for financial bond OTC administrative fee and 14% for service fee.

Taiwan Securities Association

923 Including 96% for service fee and 4% for course registration fee.

The Insurance Agency Association of the Republicof China

283 Including 89% for certificate registration fee and 11% for ongoing membership fee.

R.O.C. Bills Finance Association

250 100% for annual membership fee.

Others282

Total

18,663

B. Charitable contributions and sponsorship
Category

Amount (NT$ thousand) Description

Economic Development

88,847 Mainly for donations to small and medium enterprises credit guarantee fund.

Academic Education

86,457

Art Promotion

51,141 Sponsorship for Weiya Naxi Youth Choir, Wuyue Tian Concert, Braga Love Music, and Mother's Day Concert.

Vulnerable Care

46,551 Mainly for children's special projects and international assistance in Burkina Faso.

Medical and Health Care

26,075

Supporting the Ministry of Health and Welfare's 'Reverse Environment Youth Family Support Services', donating to Chengzheng
Junior High School counseling space, and donating to various major hospitals and dental/medical associations.

Sports Development

25,554

Organizing E.SUN Bank Youth Baseball Championship and sponsoring baseball-related activities, sponsoring XTERRA Global
Off-Road Triathlon Series.

Ecological conservation

22,789 Supporting the tree planting project in National Taiwan University Experimental Forest and the waterwheel project in Nan'an.

Enhancing international competitiveness

9,793 Organizing master forums.

Digital technology

1,850 Sponsoring technology-related activities.

Financial education
Total

E.SUN Golden Seed Project for building and renovating rural elementary school libraries (including new construction,
renovation, and new book assistance), E.SUN Academic Awards, and scholarships for outstanding talents.

200 Holding financial management lectures.
359,257

C. Contributions & Other Spending

Unit: NT$ Thousand

Trade associations or tax-exempt groups

2019

2020

2021

2022

19,76020,716

16,876

18,663

Lobbying, interest representation or similar

0

0

0

0

Political campaigns / organizations / candidates donations

0

0

0

0

19,76020,716

16,876

18,663

Total contributions and other spending

193

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Appendix 15 - Sustainability Accounting Standards Board (SASB) Index
Topic
Customer Privacy

CodeFinancial Inclusion &Capacity Building

111

Quantitative

Total amount of monetary losses as a result of legal proceedings
associated with customer privacy.

4.7 Information Security and Personal Information
Protection Management

111

FN-CB-230a.1
FN-CF-230a.1

Quantitative(1) Number of data breaches,(2) percentage involving personally identifiable information (PII),(3) number of account holders affected2

4.7 Information Security and Personal Information
Protection Management

111

FN-CB-230a.2
FN-CF-230a.2

Discussion
and Analysis

Description of approach to identifying and addressing data security risks

4.7 Information Security and Personal Information
Protection Management

111

Quantitative(1) Number and (2) amount of loans outstanding qualified to programs
designed to promote small business and community development

3.2.2 Enhancing the "usability of financial services"74

Quantitative(1) Number and (2) amount of past due and nonaccrual loans qualified
to programs designed to promote small business and community
development

Our past due information was disclosed on page 128 of
the 2022 E.SUN FHC Annual Report. For the standard
information of SASB will be disclosed in the near future.

Quantitative

Number of no-cost retail checking accounts provided to previously
unbanked or underbanked customers

3.2.2 Enhancing the "usability of financial services"74

Quantitative

Number of participants in financial literacy initiatives for unbanked,
underbanked, or underserved customers

3.2.3 Promoting Financial and Digital Literacy

76

Quantitative

Number of complaints filed with the Financial Supervisory Commission
Republic of China (Taiwan)

3.3 Treating Customers Fairly and Customer Experience78

Quantitative

Percentage of gender and racial/ethnic group representation for(1) executive management, (2) non-executive management,(3) professionals, and (4) all other employees4

Appendix 12 - Human Resource Management Indicators,
2022 Sustainability Report

184

Quantitative

Commercial and industrial credit exposure, by industry

3.1.1 Responsible Lending

58

Discussion
and Analysis

Description of approach to incorporation of environmental, social, andgovernance (ESG) factors in credit analysis

3.1.1 Responsible Lending

58

Quantitative

Amount of assets under management, by asset class, that employ (1)integration of environmental, social, and governance (ESG) issues, (2)sustainability themed investing, and (3) screening

3.1.3 Retail Banking

64

FN-AC-410a.2

Discussion
and Analysis

Description of approach to incorporation of environmental, social, andgovernance (ESG) factors in investment and/or wealth management
processes and strategies

3.1.3 Retail Banking

64

FN-IB-410a.3

Discussion
and Analysis

Description of approach to incorporation of environmental, social, andgovernance (ESG) factors in investment banking and brokerage activities 3.1.2 Responsible Investment

Quantitative(1) Number and (2) value of mortgage loans in 100-year flood zones

Quantitative(1) Total expected loss and (2) Loss Given Default (LGD) attributable tomortgage loan default and delinquency due to weatherrelated natural
catastrophes, by geographic region

FN-CB-240a.1

FN-CB-240a.4

Incorporation ofEnvironmental,
Social, andGovernanceFactors in Credit
Analysis,
Investment
Management

Environmental
Risk to Mortgaged
Properties

Page

4.7 Information Security and Personal Information
Protection Management

FN-CB-240a.3

Employee Diversity& Inclusion

Response

Number of account holders whose information is used for secondary
purposes.

FN-CB-240a.2

Selling Practices

Accounting Metric

Quantitative

FN-CF-220a.1
FN-CF-220a.2

Data Security

Category

FN-CF-270a.4
FN-AC-330a.1
FN-CB-410a.1
FN-CB-410a.2
FN-AC-410a.1

FN-MF-450a.1
FN-MF-450a.2

194

63

2.4.4 Climate Change Scenario Analysis

47

2.4.4 Climate Change Scenario Analysis

47

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Topic
Business Ethics

Systemic Risk
Management

Activity

Code
FN-CB-510a.1
FN-AC-510a.1

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Category

Accounting MetricResponse

Page

Quantitative

Total amount of monetary losses as a result of legal proceedings
associated with fraud, insider trading, anti-trust, anti-competitive
behavior, market manipulation, malpractice, or other related
financial industry laws or regulations

4.2 Code of Conduct and Ethic

96

96

FN-CB-510a.2
FN-AC-510a.2

Discussion
andAnalysis

Description of whistleblower policies and procedures

4.2 Code of Conduct and Ethic

FN-CB-550a.2

Discussion
andAnalysis

Description of approach to incorporation of results of mandatory
and voluntary stress tests into capital adequacy planning, longterm corporate strategy, and other business activities

Page 113 - 114, 2022 Annual Report

FN-AC-550a.2

Discussion
andAnalysis

Description of approach to incorporation of liquidity risk
management programs into portfolio strategy and redemption risk
management

Page 97, 2022 Annual Report

FN-AC-000.A

Quantitative(1) Total registered and (2) total unregistered assets undermanagement (AUM)

E.SUN Financial Eco System, 2022 Sustainability Report

14

FN-AC-000.B

Quantitative

Total assets under custody and supervision

E.SUN Financial Eco System, 2022 Sustainability Report

14

FN-CB-000.A

Quantitative(1) Number and (2) value of checking and savings accounts bysegment: (a) personal and (b) small business

E.SUN Financial Eco System, 2022 Sustainability Report

14

FN-CB-000.B

Quantitative(1) Number and (2) value of loans by segment: (a) personal, (b)small business, and (c) corporate

E.SUN Financial Eco System, 2022 Sustainability Report

14

FN-CF-000.A

Quantitative

Number of unique consumers with an active (1) credit card
account and (2) pre-paid debit card accountPage 70, 2022 Sustainability Report, Zero carbon credit cards

70

FN-CF-000.B

Quantitative

Number of (1) credit card accounts and (2) pre-paid debit card
accounts

Page 70, 2022 Sustainability Report, Zero carbon credit cards

70

FN-MF-000.B

Quantitative(1) Number and (2) value of mortgages purchased by category: (a)residential and (b) commercial

E.SUN Financial Eco System, 2022 Sustainability Report

14

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196

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Appendix 17 - Independent Auditors' Limited Assurance Report

197

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Summary of Subject Matter Assured
No.

1

Item

Table "B- Data breaches",
total number of data
breaches in 2022.

Page

Corresponding Chapter

Applicable Criteria

The rules*

4.7 Information Security

Total number of data breaches of E.SUN FHC, E.SUN Bank, E.SUN Securities, E.SUN Investment Consulting and E.SUN Venture Capital in 2022.
Note:． Total number of data breaches that occurred in 2022 were calculated on the basis of the data breach deﬁnition in "Directions for Information Security Incident" of E.SUN FHC and its subsidiaries.
． Total number of data breaches of E.SUN Securities and E.SUN Venture Capital that occurred in 2022 were calculated on the basis of the data breach deﬁnition in "Precautions for contingency
operations for noticing information security incidents in the securities and futures market".

Subparagraph 3
Item 1

4.7 Information Security

The percentage of data breaches involving personally identiﬁable information of E.SUN FHC, E.SUN Bank, E.SUN Securities, E.SUN Investment Consulting and E.SUN Venture Capital in 2022.
Note:． Based on the data breach deﬁnition in" Directions for Information Security Incident" and" Regulation for the Implementation of the Personal Data Infringement Emergency Response" of E.SUN FHC
and its subsidiaries, statistics show the percentage of data breaches involving personally identiﬁable information that occurred in 2022.
． Numerator: Total number of data breaches involving personally identiﬁable information that occurred in 2022 were calculated based on the data breach deﬁnition in "Directions for Information
Security Incident" and" Regulation for the Implementation of the Personal Data Infringement Emergency Response" of E.SUN FHC and its subsidiaries.
． Denominator: Total number of data breaches that occurred in 2022 were calculated on the basis of the data breach deﬁnition in "Directions for Information Security Incident" of E.SUN FHC and its
subsidiaries.
Total number of data breaches of E.SUN Securities and E.SUN Venture Capital that occurred in 2022 were calculated on the basis of the data breach deﬁnition in "Precautions for contingency
operations for noticing information security incidents in the securities and futures market".

Subparagraph 3
Item 1113

4.7 Information Security

Total number of account holders affected by data breaches in E.SUN FHC, E.SUN Bank, E.SUN Securities, E.SUN Investment
Consulting and E.SUN Venture Capital in 2022.
Note:． Total number of account holders affected by data breaches that occurred in 2022 were calculated according to the data breach deﬁnition in " Directions for Information Security Incident" of E.SUN
FHC and its subsidiaries.
． Total number of account holders affected by data breaches of E.SUN Securities, and E.SUN Venture Capital that occurred in 2022 were counted according to the data breach deﬁnition in"Precautions for contingency operations for noticing information security incidents in the securities and futures market".
． The number of account holders is deﬁned as the total number of unique account holders. If there are multiple accounts for one ID, only one account will be counted.

Subparagraph 3
Item 175

3.2.2 Enhancing the"usability of ﬁnancial
services"

Number and amount of microbusinesses loans of E.SUN Bank at the end of 2022.
Note:． Microbusinesses are deﬁned in "Directions for loan business to small business" by E.SUN Bank.
． The number and value of accounts exclude customers of overseas branches and subsidiaries. The number ofaccounts is calculated based on the total number of unique customers and uniquecustomers are deﬁned as accounts with the same ID number.
． The number of loans include loans with zero balance at the end of 2022.
． The purpose of loans for microbusinesses includes revolving credit loans and procurement of manufacturing facility.

Subparagraph 3
Item 2

Subparagraph 3
Item 3

113

2

Table "B- Data breaches",
the percentage of data
breaches involving
personally identiﬁable
information in 2022.

3

Table "B- Data breaches",
total number of accountholders affected bydata breaches involving
personally identiﬁable
information in 2022

4

At the end of 2022, total
Number of microbusinesses
loans is 19,267, total amountis 104,164 million.

5

In 2022, E.SUN Little
Financial Experts program
saw a total of258,329 participants.

76

3.2.3 Promoting Financial
and Digital Literacy

E.SUN Little Financial Experts is a program that E.SUN uses the digital platform PaGamO to incorporate ﬁnancial knowledge education, the number of participants refers to users that log into PaGamO
with education cloud accounts and complete courses.
Note:． In accordance with Item 3, Subparagraph 3, Article 4 of the Taiwan Stock Exchange Corporation Rules Governing the Preparation and Filing of Sustainability Reports by TWSE-Listed Companies:
Number of participants in ﬁnancial literacy initiatives provided to the disadvantaged without adequate banking services. Disadvantaged groups as deﬁned in No. 33 of Q&A for the Taiwan Stock
Exchange Corporation Rules Governing the Preparation and Filing of Sustainability Reports by TWSE-Listed Companies (including but not limited to students, teenagers, new immigrants, theelderly, minorities, and members of low-income households) or by ﬁnance and insurance businesses.

6

A total of 8 project ﬁnancing
cases were signed in 2022
that comply with the Equator
Principles, and 1 project
was declined.

62

3.1.1 Responsible Lending

In 2022, the total number of project ﬁnancing cases approved and declined by E.SUN Bank to which the Equator Principles apply according to "E.SUN Bank Project Financing for Equator Principles".

Subparagraph 3
Item 4

7

By 2022, a total of 139
sustainability-linked loanscases have been
approved, with a balance of
NT$40.6 billion

3.1.1 Responsible Lending

The number and outstanding balance of sustainability-linked loans of E.SUN Bank at the end of 2022
Note:
． Based on the" E.SUN Bank's Guidelines for Offering Corporate Banking Sustainability-Linked Loans", the company applying for the sustainability-linked loans shall present a corporate sustainability
report certiﬁed or veriﬁed by a third part at a designated point of time, ensuring company's commitment to reach speciﬁc sustainability-related performance indicators.
． The number of sustainability-linked loans includes applicants whose loans had been granted a credit line but whose outstanding balance of loans stood at zero as of the end of 2022.
． Number of accounts is calculated based on the approval date.

Subparagraph 3
Item 4

113

61

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No.
8

Item
As of December 2022, the related balance of green

 loans totaled NT$53.7 billion

9

Table "Female / male remuneration ratio in Taiwan in2022", the female / male remuneration ratio of basesalary and annual remuneration by employee level in
2022

10

Table "J- Absentee rate", the absentee rate and data
coverage in 2022.

11

By 2022, there were 14 businesses participate in"Sustainable Deposits" project, the accumulated
 thebalance was approximately TWD 1.031 billion

12



13



1. E.SUN collaborated with NTU in the"E.SUN–NTU
ESG Centenary Project" and planted 11,611
saplings of native tree species in 2022.
2. E.SUN collaborated with the Forestry Bureau topromote the "Plant a tree, Plant a life" E.SUN plant
trees project and planted 10,005 saplings of native
tree species in 2022.

Total ﬁnanced emissions from investment and ﬁnanceportfolios in 2021 was 3,672,612 tCO2e and the data
quality score was 3.33.
Total ﬁnanced emissions from equity and bonds
investment portfolios in 2021 was 577,108 tCO2e andthe data quality score was 1.36.
Total ﬁnanced emissions from sovereign bonds
investment portfolios in 2021 was 500,040 tCO2e andthe data quality score was 1.08.
Total ﬁnanced emissions from business loans
portfolios in 2021 was 1,906,246 tCO2e and the data
quality score was 3.77.
Total ﬁnanced emissions from electricity generation
project ﬁnance in 2021 was 301,255 tCO2e and thedata quality score was 2.72.
Total ﬁnanced emissions from commercial real estate
mortgage loans in 2021 was 98,206 tCO2e and thedata quality score was 4.00.
Total ﬁnanced emissions from mortgage loans in 2021
was 98,206 tCO2e and the data quality score was 4.00.

Journey to Net Zero
Page

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Corresponding Chapter

Applicable Criteria

3.1.1 Responsible Lending

The outstanding balance of green loans of E.SUN Bank at the end of 2022
Note:
． Based on the" E.SUN Bank's Guidelines for Offering Corporate Banking Green Loans", the company applying for the green loans shall present a green project
investment report, ensuring the company's commitment to reach speciﬁc sustainability-related performance indicators.

Subparagraph 3 Item 4

5.3.1 Equal Work,
Equal Pay; Diverse
Communication Channels

The female / male remuneration ratio of E.SUN FHC, E.SUN Bank, E.SUN Securities, E.SUN Investment Consulting and
E.SUN Venture Capital employees in Taiwan in 2022.
The deﬁnition of objective: Number of employees include E.SUN FHC, E.SUN Bank, E.SUN Securities, E.SUN Investment Consulting and E.SUN Venture Capital
employees in Taiwan but exclude workers and employees for overseas branches and employees leave without pay.
The deﬁnition of position level:． Management: Managerial employees and above in the human resource system.
． Middle management: Supervisor positions in the human resource system.
． General staff (Note): All other employees not included in the management or middle management level and exclude interns, business assistants and drivers.
． Base salary: In monthly salary details, the amount that should be paid each month less the overtime pay.
． Annual remuneration: Monthly base salary, year-end bonus, compensation of employees( estimated compensation- the salary in April next year + supervisorydifferential pay) and long-term incentive bonus.
． The annual compensation ratio of male to female refers to the ratio calculated based on the average annual compensation of men as 100 versus theequivalent level for female, for example, 100:98 (that is, 100 for men and 98 for women).
． Note: General staff does not include interns, business assistants and drivers, because the salary structure of interns, business assistants and drivers isdifferent from other full-time employees.

The other criteria referred to or designedby the Company based on the Company's
industry characteristics and sustainability
performance information reported.

188

Appendix 12 - Human
Resource Management
Indicators

The absentee rate of E.SUN FHC, E.SUN Bank, E.SUN Securities, E.SUN Investment Consulting and E.SUN Venture Capital in 2022, and the respective data
coverage rates.
Note:． Absentee rate = (Number of days of occupational sickness Leave + sick leave +personal leave ) taken by employees / Total working days.
． Total working days = Number of employees at the end of year * Total working days in 2022 announced by the Central Personnel Administration, Executive
Yuan, less Labor Day holiday.
． Number of employees include employees of overseas branches but exclude those of overseas subsidiaries.
． The data coverage rate is based on the calculation that the number of employees of each subsidiary at the end of year divided by the number of employeesof the group at the end of year.
． The total number of employees includes employees working in oversea branches.
． All employees are permanent and full-time employment, excluding employees who take leave without pay.

The other criteria referred to or designedby the Company based on the Company's
industry characteristics and sustainability
performance information reported.

69

3.1.3 Retail Banking

Number of participants and accumulated balance of Sustainable Deposits project of E.SUN Bank at the end of 2022

The other criteria referred to or designedby the Company based on the Company's
industry characteristics and sustainability
performance information reported.

149

6.1.2 Habitat Conservation

Number of saplings planted by projects, which held by The Experimental Forest, College of Bio-Resources and Agriculture, National Taiwan University andForestry Bureau Council of Agriculture, Executive Yuan, donated by E.SUN bank.

The other criteria referred to or designedby the Company based on the Company's
industry characteristics and sustainability
performance information reported.

60

142

183

Appendix 11 - Portfolio
Emission Structure

E.SUN FHC and its subsidiaries referred to PCAF to design its ﬁnanced emissions calculation criteria and to compile and disclose ﬁnanced emissions and data
quality scores by asset class.
． Total ﬁnanced emissions for investment and ﬁnancing assets: The Scope 1 and Scope 2 carbon emissions in metric tons of CO2 equivalent (tCO2e) related tothe investment and ﬁnancing assets held by E.SUN FHC and its subsidiaries. E.SUN strives to use the "latest obtainable Scope 1 and Scope 2 emissions or
estimated data":
1. The sources of the latest obtainable Scope 1 and Scope 2 emissions include E.SUN Group obtained emission data directly from investment companies, US
EPA, Bloomberg, external consulting units, ofﬁcial websites of state-owned enterprises, carbon emissions announcements by governments, or third party
public statistics.
2. Estimated data is based on the methodology recommended by PCAF, including emissions data estimated from electricity consumption per unit area of
ﬂoor (EUI) by building type, physical and economic activities, or industry-speciﬁc emissions factors from analysis of Bloomberg's emissions by industry;
and attribute factors calculated from ﬁnancial data of the closest ﬁnancial year or book value.
． The scope of ﬁnanced emissions for investment assets: E.SUN Group conducted an inventory of listed stocks, corporate bonds, and sovereign bonds held aspart of proprietary investment assets as of December 31, 2021. The entity scope includes E.Sun Bank, E.Sun Securities, and E.Sun Venture Capital Company.
The assets include "Financial Assets Through Proﬁt or Loss (FVTPL)", "Financial Assets Through Other Comprehensive Income (FVTOCI)", and "Financial
Assets at Amortized Cost (AC)" three accounts.
． The scope of ﬁnanced emissions for credit assets: As of December 31, 2021, electricity generation project ﬁnance, commercial real estate mortgage, andcorporate loans provided by E.SUN Bank and its overseas branches.
． Referred to PCAF data quality score hierarchy to calculate the weighted average data quality score of ﬁnanced emissions of investment and ﬁnance assets:
Assets class
Equity and bonds
Sovereign bonds
Business loans
Power generation project ﬁnanceCommercial real estate mortgages
Mortgages

Data quality score referred to PCAF
Table 5-3 (the data quality score table for listed equity and corporate bonds)
Table 5-26 (the data quality score table for Sovereign Debt,)
Table 5-7 (the data quality score table for business loans and unlisted equity)
Table 5-10 (the data quality score table for project ﬁnance)
Table 5-14 (the data quality score table for CRE)
Table 5-15 (the data quality score table for mortgages2)

Note: Taiwan Stock Exchange Corporation Rules Governing the Preparation and Filing of Sustainability Reports by TWSE Listed Companies (hereinafter referred to as the "Rules") Article 4, Emphasized Disclosures and Summary of Subject Matter Assured.

199

The rules*

The other criteria referred to or designedby the Company based on the Company's
industry characteristics and sustainability
performance information reported.

Our Story

Journey to Net Zero

Banking for Better

Building Resilience

Appendix 18 - Greenhouse Gas Veriﬁcation Statement

200

Our People

Seeking for Common Good

Our Story

Journey to Net Zero

Banking for Better

Building Resilience

Appendix 19 - Carbon Neutralization Certiﬁcate

201

Our People

Seeking for Common Good