Energy and GHG Emissions - Yuanta Financial Holdings

Eergy 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.

About GHG Inventory and Target, Yuanta Financial Holding Company (FHC) has signed the "Science Based Targets (SBT)" in 2019 and verification in July 2022. FHC completed the GHG inventory of categories 1 and 2 and disclosure of investment and financing assets for every year , and is the first comprehensive financial company in Taiwan to initiate. Announced that in the future, it will continue to deepen the inventory of carbon footprints, exert financial influence to promote the low-carbon transformation of the entire industry, and practice the goal of sustainable finance.

internal carbon pricing

With Taiwan's carbon fee system set to launch in 2025 and the EU's Carbon Border Adjustment Mechanism (CBAM) soon to take effect, many enterprises have begun preparing for the challenges of a carbon-priced era. In 2020, the Group implemented a "Shadow Price" mechanism across its operations as an internal carbon pricing tool. By assigning a hypothetical (non-actual) cost to carbon emissions, we help management gradually internalize the concept of carbon pricing in decision-making, as the very first financial institution in Taiwan to explicitly price greenhouse gas emissions, effectively internalizing external environmental costs.

The Group sets an internal carbon price for greenhouse gas emissions based on international carbon pricing benchmarks and projected carbon costs under 2050 net-zero scenarios, with adjustments made annually. During the 2023 trial period, the internal carbon price was set at NT$1,500 per metricton. After official implementation in 2024, the price was increased to NT$2,000 per metric ton. Internal carbon pricing is integrated with the planning of carbon reduction targets for each subsidiary, supporting the evaluation of the effectiveness of various energy-saving and carbon-reduction projects. The input and output of energy efficiency improvement plans are calculated using the carbon price as a parameter. An internal carbon pricing task force regularly tracks the achievement rates of each subsidiary's carbon reduction targets.

Subsidiaries that fail to meet their annual greenhouse gas reduction targets are required to propose corrective actions and plans, which are reported during task force meetings. Carbon reduction targets are also linked to management performance evaluations, reinforcing our commitment to decarbonization. During the formal implementation period in 2024, the Group's total carbon emissions decreased by 968.31 metric tons compared to the previous year, representing a 5.20% reduction—equivalent to approximately NT$1.93 million in carbon value. Aiming to become a model of international sustainability, the Group aspires to lead the financial industry in low-carbon transition by fulfilling its climate responsibilities through internal carbon pricing.

ISO 14001:2015 Environmental Management System
（Date of first certification: 2025.03.22; Expiry date: 2028.03.21）

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. 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: 2025.04.18; Inventory year: 2024）

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. The scope has been expanded to overseas sites in 2024. 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.

Group Greenhouse Gas Emissions

GHG Emissions (metric tons of CO₂e)) (Note1,2,3)	2021	2022	2023	2024
Category 1 (Note4)	1,660.71	1,436.98	1,359.64	1,124.75
Category 2 (Location-based)	20,593.33	18,562.91	17,254.23	16,520.81
Category 2 (Market-based) (Note5)	20,407.59	18,562.91	17,254.23	16,520.81
Category 1+2 (Location-based)	22,254.04	19,999.89	18,613.87	17,645.56
Carbon Intensity (metric tons of CO₂e per NT$ billion of revenue) (Note6)	186.63	218.57	189.76	146.19
Data Coverage Rate (%) (Note7)	100	100	100	100
Category 3~5 (Note8)	4,035.19	125,777.62	97,629.53	97,509.17
Notes： The inventory is conducted for Category 1~4 based on ISO 14064-1. The operational control approach is used to set the organizational boundary, and the base year was the 2021 location-wide inventory. Based on the emission factor methodology, GHG emissions = activity data x emission factor x Global Warming Potential (GWP). The GWP values used in 2020 reference to IPCC AR5 version. From 2021 onwards, the GWP values reference to IPCC AR6 version. Category 1 and 2 GHG emissions include carbon dioxide(CO2), methane(CH4), nitrous oxide(N2O), hydrofluorocarbons(HFCs), perfluorocarbons(PFCs), sulfur hexafluoride (SF6) and nitrogen trifluoride (NF3). Category 1 GHG emissions mainly come from gasoline and refrigerant. The emission factors are calculated using the“Ministry of Environment Greenhouse Gas Emission Factor Management Table 6.0.4.” Category 2 GHG emissions are externally procured electricity. The Category 2 (market-based) GHG emissions are calculated using the quantitative method of the Ministry of Environment “Operating Guidelines for Greenhouse Gas Emissions Inventories. Carbon intensity refers to the emissions of Category 1 and Category 2 greenhouse gases generated per NT$1 billion in revenue. Data coverage rate represents the ratio of locations included in the Category 1 and 2 data compared to total locations in the specified year. Category 3~5 GHG emissions do not include the carbon emissions related to investing and financing activities.

Group Greenhouse Gas Emissions from Overseas Sites

Greenhouse Gas Emissions (Metric tons CO₂e)	2024
Category 1	792.31
Category 2 (Location-based)	4,028.56
Category 2 (Market-based)	4,028.56
Category 1+2 (Location-based)	4,820.87
Data Coverage Rate (%)	100

ISO 50001:Energy Management Systems
（Date of certification: 2024.05.28; Expiry date: 2027.05.27）

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 2024, Yuanta Financial Plaza, Yuanta Financial Tower, Yuantai Plaza, Taichung Building, Chongde Building, Yongkang Building, Fucheng Building, Kaohsiung Building, and Mingcheng Building, a total of nine 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 Plaza	Yuanta Financial Tower	Yuantai Plaza	Taichung Building	Taichung Chongde Building	Tainan Fucheng Building	Tainan Yongkang Building	Kaohsiung Building	Kaohsiung Mingcheng Building
Covered Companies	Financial Holdings Securities Bank Investment Consulting	Financial Holdings Securities Bank	Securities Bank Futures AMC	Securities Bank Futures	Securities Bank Life (Insurance) Funds Securities Finance	Securities Bank Futures	Securities Bank	Securities Bank Futures	Securities Bank
Standard Version	ISO 50001:2018
Date of First Certification	2018/05/28
Expiry Date	2027/05/27

Energy Saving Actions and Results

Using energy-saving initiatives and reducing energy consumption is an important part of creating low-carbon operations. Through various energy-saving initiatives, including the replacement of high-energy consumption equipment, the installation of LED energy-saving lighting, induction lighting, control of electrical equipment usage, intelligent monitoring of energy consumption, air-conditioning system upgrade, building insulation design, replacing old vehicles and installing electric vehicle charging sockets in new buildings, etc., and through education and promotion, the Group has enhanced employees' awareness of energy saving, carbon reduction and environmental protection in order to reduce the potential risks of carbon emissions from the Company's operations and mitigate the impact of climate change.

Energy Saving Actions	Reduction of Power Consumption (kWh)	Reduction of Energy Consumption (MJ)	Carbon Reduction Performance (Metric tonsCO₂e)	Project Input Cost (NT$ thousand)
Installation of LED energy-saving lighting	155,578	560,080	76.86	3,410
Replacement of old air conditioning equipment	174,998	629,992	86.45	15,928
Total	330,576	1,190,072	163.30	19,338
Notes: The reduction in electricity consumption is calculated by converting the project's electricity savings over 12 months of 2024. The carbon reduction performance is calculated based on the 2023 Electricity Emission Factor = 0.494 (kgCO2e/kWh) announced by the Taiwan’s Bureau of Energy, MOEA. The GHG reductions of the major energy saving actions take place in the scope of Category 2.

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.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

The Group has actively responded to the changes in Taiwan’s renewable energy regulations. In terms of purchasing renewable energy, in the beginning, the Group focused mostly on solar power plants based on the operating model in our offices. We also requested the power plants to provide actual photos and describe their plans, ensuring that power generation at the sites did not affect land and environmental ecosystems. In addition, the Group completed the signing of the "Renewable Energy Power Purchase Agreement (PPA)" in 2020 and officially switched to renewable energy power supply in the third quarter of 2021. In 2024, the green power procurement plan encompassed Yuanta Financial Holdings and all eight of the its subsidiaries. Additionally, over 30% of locations began using green energy. The Group is committed to further expanding the coverage of green energy supply. The Group will continue to expand the coverage of green energy supply. The total green energy supplied was 5.28 million kWh in 2024. In 2024, 13.64% of the energy used by the Group was green energy. Compared to 2023, the volume of green power supplied has nearly doubled this year.

In addition to renewable energy purchases, the Group is actively installing renewable energy equipment. Solar panels are also planned for newly constructed self-owned buildings. In 2024, the Yuanta Financial Plaza officially commenced operations, with 71 solar panels installed on the rooftop, providing an installed capacity of 24.85 kW. This meets the daily energy-saving indicators required for green building certification, demonstrating the Group's active and effective use of renewable energy.

In summary, the cumulative use of renewable energy (including Renewable Energy Certificates) from 2016 to 2024 reaches 11,907,368.00 kWh, reducing greenhouse gas emissions of 5,972.83 metric tons of CO₂e, which is equivalent to the amount of carbon absorbed by 615.20 hectares of forest.

Yuanta Group Renewable Energy Green Power Usage

Item	2021	2022	2023	2024
Green Power Wheeling (PPAs) (kWh)	15.73	94.59	264.34	528.08
Total Renewable Energy Consumption(kWh)	52.73	94.59	264.34	528.08
Electricity Emission Factor (kgCO₂e/kWh)	0.509	0.509	0.495	0.494
Carbon Reduction (Metric tons CO₂e)	264.7	481.46	1,308.46	2,608.72
Equivalent annual forest carbon absorption (hectare)	26.17	49.52	134.81	268.70
Note: TThe total renewable energy usage from 2021 included the number of renewable energy certificates purchased. Since 2022, energy supplied has been exclusively green power wheeling. Detailed disclosures are available in the 2024 ESG Report.

Primary Energy Usage

Items		2021	2022	2023	2024
Non-Renewable Energy	Power Consumption (kWh)	41,022,562	36,454,150	34,823,076	33,442,945
	Other Energy Consumption (GJ)	5,147	4,402	4,531	4,699
	Other Energy Consumption (MWh)	1,429.72	1,222.78	1,258.61	1,305.28
	Total Energy Consumption (GJ)	152,828	135,637	129,894	125,115
	Total Energy Consumption (MWh)	42,452.22	37,676.93	36,081.69	34,754.19
	Energy Intensity (GJ/NT$1 billion revenue)	1,281.68	1,482.34	1,324.23	1,036.59
Renewable Energy	Power Consumption of Green Power Wheeling & Renewable Energy Certificates (kWh)	527,341	945,920	2,643,358	5,280,786
	Total Renewable Energy Consumption (GJ)	1,896	3,405.32	9,516.08	19,014.25
	Total Renewable Energy Consumption (MWh)	527.34	945.92	2,643.36	5,280.79
Data Coverage Rate (%)		100	100	100	100
Notes: The primary form of energy use is purchased electricity. The item of other energy includes gasoline and diesel. 2. The conversions of heating value of energy are calculated with reference to the conversion units published by the International Bureau of Weights and Measures and to the “2023 Energy Statistics Handbook – Table for Unit Heating Value of Energy Products” of Taiwan's Bureau of Energy, MOEA. We calculated the data using 860 kcal/kWh for electricity, 7,800 kcal/L for gasoline, and 8,400 kcal/L for diesel, and converted units by 4.1868 kJ/kcal, 0.277778 MWh/GJ Data coverage rate represents the ratio of locations included in the data compared to total locations in the specified year.