元大金控 元大金控 元大金控

Yuanta Bank follows the “Sustainable Finance Guidelines” to incorporate sustainable financial risk management into the lending business review and decision-making process. It also requires the completion of sustainable financial assessment for its lending business, stipulating that the lending business should carefully assess whether there are potential risks of environmental and social hazards in the counterparty or transaction content, and should incorporate ESG factors into KYC and CDD investigation processes to understand the regulatory compliance of the lending counterparty, international sustainability index scores, and the presence of negative ESG issues to ensure risk control. For project financing, we included the “Sustainable Finance Guidelines” review program to examine the potential ESG risks of our creditors at the risk assessment stage. In accordance with the “Key Points for Project Financing Management,” the Company conducts due diligence and evaluates the financial, legal, insurance, and technical feasibility, and risks of the project. If necessary, we commission external experts (e.g., lawyers, accountants, etc.), professional consultants or third-party inspection and testing organizations to issue evaluation reports.

Yuanta Bank is committed to adhering to the United Nations Principles for Responsible Banking (PRB). Through the implementation of responsible lending processes, it actively supports projects and enterprises that have a positive impact on ESG issues. Additionally, by offering sustainable financial products and services, Yuanta Bank leads its borrowers in generating positive environmental and social outcomes.

Compliance with Principles for Responsible Banking

Post-loan management, review and follow-up examinations are conducted by Yuanta Bank to see if the creditors properly utilized the loan according to the original loan plan and actually fulfilled the contractual requirements and other contractual matters. We will continue to pay attention to the use of funds after the contract is signed and funded and to the implementation of sustainable development. If a company is involved in events such as workplace accidents, environmental pollution, legal violations, or money laundering that may have a significant negative impact on society or the environment, an ESG risk review is conducted to assess whether to continue the transaction. In 2025, there was a case where a borrower was refused a loan after assessment due to a violation of labor rights.

Yuanta Bank signed the Equator Principles and became a member bank of the Equator Principles Association in 2020. Yuanta Bank also completed the formulation of the “Guidelines for Managing Equator Principles Financing Cases” and related operational procedures in the same year. The Equator Principles were officially implemented on June 1, 2021.

When providing customer credit or related financial advisory services, if the transactions meet the conditions for applying the Equator Principles and are assessed as cases with medium to high environmental and social risks, the credit counterparties will be required to commission an independent third-party organization to conduct environmental and social risk assessments, and issue an assessment report as a reference basis for the environmental and social risk assessment of the case.

The “Task Force on Environmental and Social Risk" was established by Yuanta Bank to evaluate, review, and monitor the environmental and social risks of lending cases. A classification is employed to manage environmental and social risks of large-scale project financing cases. The environmental and social impacts that the projects may cause in terms of natural risks, climate change, greenhouse gas emissions, and important stakeholders are carefully evaluated under the framework of Equator Principles 4.0. This year, a total of six project financing cases were reviewed according to the Equator Principles. Following the assessment, one case was undertaken while the remaining five were respectfully declined. The approved loan amount was approximately NT$5 billion, and the total rejected amount was approximately NT$25 billion.

Yuanta Bank follows the spirit of the “Sustainable Finance Guidelines” and provides sustainable products and services to corporate customers, aligning with both domestic and international advocacy principles and guidelines through a rolling review mechanism. By understanding the industry characteristics and status of its customers, the bank tailors ESG-related indicators that are highly aligned with the operational strategies for customers with transition needs or sustainability plans, and continuously reviews the achievement of these indicators. The bank evaluates the achievement of ESG indicators and refines its business processes to better meet customers’ operational goals and transformation plans, catering to their needs for green and transition financing and guiding them toward achieving sustainable growth.

In response to the goal of net-zero transition set by the government, Yuanta Bank has been actively promoting Six Core Strategic Industries by approving loans for green power and renewable energy industries, meeting the environmental protection equipment needs of industries, and supporting relevant industries that endeavor to fulfill pollution control requirements through resource integration and green innovative material research and development.

Unit: NT$ thousand

Categories	2024			2025
	Loan Amount	Total Lending Amount *Note4	Proportion of Total Lending (%)	Loan Amount	Total Lending Amount *Note4	Proportion of Total Lending (%)
Sustainable lending *Note1	$238,825,248	$1,004,878,844	23.77	$190,376,006	$846,107,063	22.50
Sustainability-Linked loan *Note2	$80,859,840		8.05	$92,255,432		10.90
Sustainable SME loans *Note3	$48,576,239		4.83	$43,664,937		5.16
Total	368,261,327		36.65	326,296,375		38.56

Notes:

1. Sustainable lending includes green loans, social loans, and sustainability loans. The industries or projects financed include the green power and renewable energy industry as well as related infrastructure. We facilitate resource integration and innovative green material-related R&D to increase industries’ demands for environmental protection equipment, and for industries to lower water consumption, diminish the harmful impact of waste on the environment, prevent pollution and engage in related construction, build low-carbon buildings, and develop/carry out transportation-related industries and projects.
2. The loan programs are designed based on the Sustainability-Linked Loan (SLL) principles, as we consistently negotiate sustainability-related indicators with customers. If the relevant conditions are met, the preferential interest rates reduction of 0.01% to 0.03% will be provided as an incentive.
3. Companies belonging to the ESG industry that use the loans for “green expenditure” and those that engage in renewable energy power generation, cleaning technology, and energy efficiency.
4. In this table, the total lending amount and loan amount are defined as the amount of money from newly approved cases in the current year.

Yuanta Financial Holdings voluntarily adheres to the “Principles for Responsible Investment (PRI),” integrating ESG topics into investment decision-making to enhance the long-term value of assets. Each subsidiary follows the Group’s “Sustainable Finance Guidelines” by incorporating ESG-related screening criteria tailored to its business nature into relevant investment regulations and establishing internal mechanisms to implement the spirit of responsible investment. For example, when selecting medium- and long-term investment targets, Yuanta Securities, Yuanta Bank, and Yuanta Life incorporate ESG factor assessments and consider investees’ environmental and social performance. Through capital allocation, they reduce risks and actively support enterprises’ sustainable development. The total amount of responsible investments made by Yuanta Securities, Yuanta Bank, and Yuanta Life this year was NT$84.19 billion.

Compliance with Principles for Responsible Investment

Yuanta Securities implements rigorous ESG reviews for proprietary trading targets. For medium- and long-term securities investments, trading staff are required to complete the ESG checklist and obtain approval of the ESG assessment report from the department head. For bond investments, the bond trader completes the ESG checklist and obtains sign-off from a senior executive. The review criteria draw broadly on domestic and international information sources, including Bloomberg ESG indicators as well as information from the Taiwan Stock Exchange and the Taiwan Depository & Clearing Corporation (TDCC), and decisions are made with reference to the Financial Supervisory Commission’s Guidelines for Sustainable Economic Activities Recognition. In addition, within the regular fixed-amount purchase business for Taiwan stocks, Yuanta Securities prioritizes constituent stocks of the FTSE4Good TIP Taiwan ESG Index, guiding customers to invest in companies with strong ESG performance.

Yuanta Bank is committed to fully embedding ESG factors into its investment decision-making process. In accordance with the “Establishment and Review Guidelines for the Medium- and Long-Term Investment Review Committee of the Financial Market Business Division” and the “Operational Guidelines for Bank Book Funds Utilization and Transactions,” the Bank incorporates “the enhancement of social or environmental positive impact” as a review basis in its sustainable finance assessment form. The review criteria are implemented in line with the “Sustainable Finance Guidelines” and cover the following categories: renewable energy; water resources and energy conservation; environmental protection through investment in environmentally friendly products or equipment; water resource recycling and regeneration; organic fertilizers; industries that enhance health and well-being; industries that promote quality education; enterprises that advance environmental and social sustainability; and other enterprises engaged in ESG-enhancing businesses or activities. Investment targets meeting the above criteria are prioritized for inclusion in Yuanta Bank’s investment universe. In addition, Yuanta Bank has established climate change risk management measures to regularly assess fluctuations in the climate risk values of investment targets, thereby mitigating investment risks.

Yuanta Securities, Yuanta Bank, Yuanta Life, and Yuanta Funds have all signed the Stewardship Principles for Institutional Investors and announced on the Company’s website the “Statement of Compliance with the Stewardship Principles,” “Stewardship Report,” and “Voting Record of Attendance at Shareholders Meetings of Investee Companies.” We continue to pay attention to news, financial information, industry performance, business strategy, corporate sustainability, and corporate governance of our investee companies, expressing the Company’s goal of actively implementing responsible investment. Yuanta Securities, Yuanta Bank, and Yuanta Funds were also selected for the “Better Disclosure of Information List 2025” of the Stewardship Principles Evaluation for Institutional Investors.

Each subsidiary follows the “Key Points of Engagement and Voting Operations” and establishes relevant assessment mechanisms or indicators in line with business needs, covering key ESG issues of concern such as climate change and biodiversity. Engagement is prioritized for investee companies with relatively lower ESG indicator ratings. The Group also communicates with invested companies through telephone calls, e-mails, or meetings (such as institutional investors conferences and shareholders meetings). When an invested company violates ESG principles on specific issues and damages the rights of the Group’s customers or beneficiaries, each subsidiary will exercise its voting rights or other shareholders’ rights to express its demands to the management of the invested company and further influence the conduct of the invested company; where necessary, it may vote against proposals or abstain from voting. If lending or investment counterparties do not respond or take improvement actions, the Group may restrict the level of funding provided to such companies and may also jointly express its expectations with other financial institutions, industry associations, and/or government organizations.

The Group spares no effort in supporting the sustainable transformation of industries, continuously monitoring the actions and progress of invested companies in topics such as climate change, low-carbon transition, supply chain management, and corporate sustainability policies. We aim to promote concrete climate response actions and enhance climate resilience through interaction with investee companies. The Company has engaged with eighteen key invested companies in 2025. Industries involved include domestic semiconductors, electronic components, steel, and plastics. Among them, fourteen companies undertook specific improvement actions following engagement. These actions are: increasing the proportion of sustainable products, reducing carbon emissions through replacing outdated equipment, proposing optimized performance evaluation systems, and assessing emission reduction targets.

Yuanta Securities, Yuanta Bank, Yuanta Life, and Yuanta Funds have conducted engagements as institutional investors with invested companies and relevant partners to help them establish relevant response strategies, improvement plans, and future goals on major environmental issues. For example, Yuanta Bank engages in ESG-focused dialogue and interaction with investee companies through annual questionnaires. These questionnaires primarily inquire whether the companies have set carbon reduction targets, are concerned about the impact of their operations on biodiversity, and have supplier vetting systems – all of which are considered in investment decisions.
Examples of such engagements are as follows:

In line with the “Principles for Responsible Investment (PRI)”, when undertaking underwriting mandates such as domestic and overseas listings (including over-the-counter (OTC) listings), overseas capital raising, and financial advisory services, Yuanta Securities assesses customers’ ESG compliance based on its internal “Proprietary Investment Trading Decision-Making Operating Guidelines” and the “Responsible Investment Checklist.” If a case involves specified industries or high-sensitivity industries such as coal-fired power generation, coal-related industries, or unconventional oil and gas, an additional assessment is required before the case may be accepted.

During the case screening stage, Yuanta Securities excludes companies prohibited under the “Sustainable Finance Guidelines” and the “Investment Management Policy.” For industries requiring enhanced assessment, the reasons and assessment basis must be clearly documented. ESG reviews draw on diversified domestic and international data sources. If the target does not meet the relevant guidelines, Yuanta Securities initiates engagement to assist customers with sustainability transition.

Beyond rigorous screening, Yuanta Securities proactively expands its advisory influence. Through consultation and engagement this year, Yuanta Securities supported client companies in strengthening corporate governance and sustainable development. After advisory services, it continues to track public disclosures and convenes follow-up meetings regularly.

In 2025, Yuanta Securities assisted in the underwriting of sustainable development bonds, participating in the underwriting of 25 Green Bonds including those issued by Taiwan Semiconductor Manufacturing Co., Ltd., Taiwan Power Company, and Far Eastern New Century Corporation; 4 Sustainability Bonds including those issued by Land Bank and E. Sun Commercial Bank, Ltd.; and 1 Social Bond issued by Taiwan Mobile Co., Ltd. As of December 31, 2025, the outstanding issued bond balance amounted to a total of NT$20.3 billion. The proceeds support renewable energy and energy technology, energy efficiency and conservation, greenhouse gas reduction, waste recycling or reuse, green energy applications, and affordable housing.

Unit: NT$ thousand

Categories	2024			2025
	Bonds Value	Total Value of Underwritten Bonds *Note3	Proportion of Total Underwritten Bond Value (%)	Bonds Value	Total Value of Underwritten Bonds *Note3	Proportion of Total Underwritten Bond Value (%)
Green Bond Underwriting/ Social Bond Underwriting/ Sustainability Bond Underwriting *Note1	$17,070,000	$124,180,000	13.75	$20,301,000	$166,911,000	12.16
Sustainability-Linked Convertible Bond Underwriting *Note2	$4,800,000		3.87	-		-
Total	21,870,000		17.62	20,301,000		12.16

Notes:

1. Bonds that meet the definitions of green bonds, social bonds, and sustainability bonds described in Article 3 of the Taipei Exchange Operation Directions for Sustainable Bonds.
2. Bonds that meet the definitions of sustainability-linked bonds described in Article 3 of the Taipei Exchange Operation Directions for Sustainable Bonds.
3. In this table, the underwriting value and underwriting amount are defined as the amount of money from new cases in the current year.

Yuanta Bank issued NT$1 billion in sustainability bonds on March 31, 2025 (Bond Code: G10833, Bond Short Name: P14元大銀 1). Through its wholly-owned subsidiary Yuanta Bank, Yuanta Financial Holdings invested in sustainability bonds approved by the Taipei Exchange. New investments for the year 2025 are detailed in the table below:

Item	Bond Name	Bond Short Name	Code	Amount (NTD)
1	Mega Bank Green Bond	P14兆豐銀1	G11849	1,000,000,000
2	TSMC Green Bond	P11台積1A	B618CV	100,000,000
3	TSMC Green Bond	P11台積4B	B618D3	100,000,000
4	TSMC Green Bond	P14台積2A	B618DZ	300,000,000
5	Land Bank of Taiwan Sustainability Bond	P10土銀1	G12727	150,000,000
6	Taipei Fubon Bank Social Bond	P10北富銀2	G107C3	150,000,000
7	Chunghwa Telecom Sustainability Bond	P14中華電1	B9AG08	2,200,000,000
8	The Shanghai Commercial & Savings Bank Green Bond	P14上海2A	G10177	200,000,000