Energy and GHG Emissions

Implementation of Greenhouse Gas Inventory System and Energy Management System

Yuanta is highly aware of the impact climate change has on the economic, financial, and legal environment. As such, in addition to diversifying our operations and developing new businesses based on our existing niches, we also adjust our operating procedures, business strategy, and investment decisions as necessary. On top of this, through education and training, we raise our employees' understanding of climate risk and improve their ability to adapt accordingly, reducing potential operating risks to the Company while also continuing to strive for environmental sustainability.

Since 2015, Yuanta Financial Holding Company (FHC) has started to implement ISO 14001 environmental management system to establish an environmental management framework, formulate environmental policies, plan environmental improvement goals and targets, and propose continuous management improvement plans. Based on the ISO 14001 environmental management system framework, we have been promoting ISO 14064-1 Greenhouse Gas (GHG) inventory, ISO 50001 energy management system, and ISO 14046 water footprint inventory, which have been implemented year by year to effectively carry out carbon reduction, energy saving, water conservation, and business waste control, and to comprehensively improve environmental management efficiency.

ISO 14001:2015 Environmental Management System
（Date of first certification: 2016.03.22; Expiry date: 2022.03.21）

Yuanta continues to promote a variety of measures to reduce our environmental impacts and move toward establishing a green corporate culture. In addition to creating a green and friendly workplace, we are also working to encourage customers, employees, and their families to get involved in green initiatives and work together to achieve the goals of environmental sustainability. To promote and manage environmental issues within the Yuanta Group, Yuanta started ISO 14001 environmental management system implementation in November 2015, beginning with Yuanta FHC. The Yuanta Financial Tower and Datong Building passed verification in March 2016. The implementation expanded to include Yuanta Life location on the 16th through 18th floors of Hongtai Building in January 2017. In 2020, Yuanta FHC and its 9 subsidiaries all have implemented the system and passed the verification, with a 100% coverage rate. Yuanta will continue to maintain the system operational and strive to pass verification.

ISO 14064-1:2018 Greenhouse Gas (GHG) Inventory
（Date of certification: 2021.05.07; Inventory year: 2020）

Yuanta began to implement the ISO 14064-1 GHG Inventory System in 2015, with subsidiaries Yuanta Securities and Yuanta Funds passing certification in May and September of 2016 respectively. In 2020, we undertook ISO 14064-1:2018 inventory of GHG emissions and Yuanta FHC and our subsidiaries passed certification with a 100% coverage rate. In the future, we will continue to conduct GHG inventory every year in order to grasp the actual effectiveness of our company’s energy saving and carbon reduction.

GHG Emissions (metric tons of CO₂e)	2017	2018	2019	2020
Category 1	1,545.00	975.18	1,361.94	1,492.17
Category 2	24,196.00	24,792.44	20,150.58	22,388.11
Category 1 & 2	25,741.00	25,767.52	21,512.51	23,880.28
Carbon Intensity (metric tons of CO₂e per NT$ billion of revenue)	274.46	254.42	199.92	206.53
Data Coverage (%)	100	100	100	100
Category 3 & 4	－	6,440.30	5,667.59	6,440.27

Note:
From 2019 onwards, it is based on the new version of ISO 14064-1:2018 inventory; the new version is divided into: Category 1 (direct GHG emissions), Category 2 (indirect GHG emissions from input energy), Category 3 (indirect GHG emissions from transport), Category 4 (indirect GHG emissions from products used by the organization), Category 5 (indirect GHG emissions from the use of the organization’s products), and Category 6 (indirect GHG emissions from other sources).

ISO 50001:2018 GHG Inventory
（Date of certification: 2021.05.07; Inventory year: 2020）

Since 2016, the Yuanta Group has gradually introduced the ISO 50001 energy management system to continuously evaluate and implement energy-saving plans through a systematic management framework and process in order to achieve effective improvement of energy performance. In 2020, Yuanta Financial Tower, Taipei Datung Building, Taipei Chengde Building, Taipei Baoqing Building, Taichung Building, Tainan Yongkang Building, Tainan Fucheng Building, Kaohsiung Building, Kaohsiung Mingcheng Building, and Taichung Chongde Building, a total of ten Yuanta self-owned buildings have obtained ISO 50001 energy management system certification. The original target of having all of the Yuanta Group’s owned buildings certified by 2021 has been achieved ahead of schedule.

Inventory Boundary of All Owned Buildings in Taiwan	Yuanta Financial Tower	Taipei Datung Building	Taipei Baoqing Building	Taipei Chengde Building	Taichung Building	Taichung Chongde Building	Tainan Fucheng Building	Tainan Yongkang Building	Kaohsiung Building	Kaohsiung Mingcheng Building	Yecaiji Building
Covered Companies	Financial Holdings Securities Bank Venture Capital Securities Finance	Securities	Securities Bank	Securities Bank	Securities Bank Futures	Securities Bank Life (Insurance) Funds Securities Finance	Securities Bank Life (Insurance)	Securities Bank	Securities Bank Futures	Bank	Funds
Standard Version	ISO 50001:2018
Date of First Certification	2018/05/28										2017/04/23
Expiry Date	2024/05/27										2023/04/22

Promoting Energy-Saving and Carbon-Reduction Measures

Greenhouse gas emissions mainly stem from energy use. The Company’s services generate the largest amount of carbon emissions from electricity consumption. To fight global warming together, we implemented the ISO 50001 system. In addition, through replacement of old energy-consuming equipment, promotion of energy use management programs, and educational efforts, Yuanta FHC works to boost employee awareness of energy conservation, carbon reduction, and environmental protection. In this way, we can reduce energy consumption and carbon emissions of the Company’s operations and strive for environmental friendliness.

Major Energy-Saving Actions in 2020

Company Name	Description of Energy-Saving and Carbon-Reduction Project	Estimated Reduction in Electricity Consumption (kWh)	Estimated Reduction in Energy Consumption (MJ)	Estimated Carbon Reduction Performance (metric tons of CO₂e)	Project Input Cost (NT$)
Yuanta Securities	19 branches of Yuanta Securities fully renewed LED energy-saving lighting fixtures	168,322	605,959	85.68	2,502,300
Yuanta Securities	Removal of 19-inch screens from lobby TV walls of branch offices, totaling 748 units	28,050	100,980	14.28	224,400
Yuanta Bank	7 branches of Yuanta Bank fully renewed LED energy-saving lighting fixtures	297,630	1,071,468	151.50	1,732,188
Yuanta Bank	Yuanta Bank’s 4 owned buildings fully renewed LED energy-saving lighting fixtures	186,414	671,090	94.89	788,200
Yuanta Life	Installation of a timer for the air conditioning fan in the head office to execute automatic equipment shutdown setting and management	29,675	106,830	15.11	38,000
Yuanta Life	Pingtung Communications Office upgraded its lighting fixtures to LED, with a total of 75 fixtures and 50.2% annual energy efficiency.	5,862	21,103	2.98	79,000
	Total	715,953	2,577,431	364.42	5,364,088

Smart Monitoring Implementation

In order to calculate the energy consumption situation with data, real-time and continuous information, Yuanta FHC is the first to introduce “Chunghwa Telecom iEN Smart Energy-Saving Service - Building Energy-Saving System" in 2019. The project is carried out in six steps: current situation evaluation, system introduction evaluation, simulation of results, on-site installation, field acceptance, and official launch. 211 sensor points and system feeders are deployed in six owned buildings, and real-time metered measurements are used to obtain basic information on electricity consumption of high-energy consumption equipment. Through the system’s real-time online monitoring, we can grasp the continuous energy consumption situation to evaluate the operation efficiency of high energy-consuming equipment, which is the basis for scientific setting of long-term carbon reduction targets.

Renewable Energy Procurement

In response to Taiwan’s Ministry of Economic Affairs-Voluntary Green Electricity Pricing Pilot Program, Yuanta FHC purchased 500,000 kWh of green power from Taiwan Power Company in 2016. To continue this environmentally friendly practice in 2017, our subsidiaries Yuanta Securities, Yuanta Bank, Yuanta Life, Yuanta Securities Finance, Yuanta Futures, and Yuanta Funds together purchased 500,000 kWh of green power.

The year 2020 is the first year of green power free trade in Taiwan, and the government has opened up the possibility for enterprises to purchase green power directly through electricity sellers. Therefore, the Yuanta Group’s renewable energy use strategy has advanced from the previous advocacy stage of purchasing renewable energy certificates (T-REC) to the implementation of renewable energy power purchase agreements (PPA) and the highest standard of using 100% green power, giving rise to “the first 100% green power branch and subsidiary in Taiwan.” The four branches of its subsidiaries Yuanta Securities and Yuanta Bank have signed PPAs and are expected to supply electricity in the second quarter of 2021, making them the first financial business locations in Taiwan to use 100% green power, setting a new model for green energy use in the financial industry and starting the first year of financial green power.

Yuanta Group Purchases of Green Power/Renewable Energy Certificates

	2016	2017	2018	2019	2020
Renewable Energy Purchases	500,000 kWh	500,000 kWh	500,000 kWh	500,000 kWh	510,000 kWh
Electricity Carbon Emission Coefficient (kilograms of CO₂e)	0.530	0.554	0.533	0.509	0.509
Carbon Reduction (metric tons of CO₂e)	265	277	266.5	254.5	259.59

Primary Energy Usage

Item Description		2017	2018	2019	2020
Non-renewable Energy Usage	Gasoline (liter)	182,316.50	168,531.13	155,586.70	184,952.00
	Diesel (liter)	8,263.00	3,365.00	2,229.20	3,425.00
	Total Electricity Consumption (kWh)	45,238,610.00	44,353,757.36	37,805,960.40	43,984,518.00
	Total Electricity Costs (NT$1000)	117,656.58	115,355.25	98,325.74	174,559.42
	Total Heating Value (MJ)	169,019,719.58	165,213,797.78	141,285,355.79	164,533,205.87
	Total Energy Consumption (MWh)	46,949.96	45,892.76	39,245.96	45,703.70
	Energy Intensity (MJ per NT$ billion of revenue)	1,802,204.19	1,631,257.88	1,312,963.31	1,422,940.66
Purchase of Renewable Energy	Green Power / Renewable Energy Certificates (kWh)	500,000	500,000	500,000	510,000
Purchase of Renewable Energy	Heating Value (MJ)	1,799,120	1,799,120	1,799,120	1,835,102
Data Coverage Rate (%)		100	100	100	100
Note: The scope of annual energy usage is consistent with the scope of GHG emissions. The Yuanta Group’s main energy usage is purchased electricity consumption, while the value of heating, cooling, and steam consumption is zero. The Yuanta Group has no self-produced energy and no energy-selling activities. Therefore, energy sales of electricity, heating, cooling, and steam equal zero. All conversion values are calculated with reference to the conversion units published by the International Bureau of Weights and Measures and the “2020 Energy Statistics Handbook - Energy Products & Energy Units Table” of Taiwan’s Energy Bureau, Ministry of Economic Affairs. The total electricity cost from 2017 to 2019 is calculated by the average electricity price of the “2018 Energy Statistics Handbook - Annual Electricity Price List” of Taiwan’s Ministry of Economic Affairs. The calculation for 2020 is based on the Yuanta Group’s actual expense costs. The data coverage rate is the percentage of the locations included in the statistics to the total number of locations in the current year.