Sustainable Value Creation Process

In order to provide more diversified financial products, greener financial services, and better customer care, we have integrated the Group’s internal and external resources, actively responded to stakeholder concerns, and disclosed relevant management performance. With reference to the spirit of the integrated reporting (Integrated Reporting, IR) reporting framework developed by The International Integrated Reporting Council, the six major capital inputs, capital outputs, and sustainable management have been disclosed. Through the strategic allocation and use of each sustainable capital, the Group’s capital will be maximized, and we are striving to create sustainable value for all of our stakeholders.

Six Types of Major Sustainable Capital Input

Six Types of Major Sustainable Capital	2022 Capital Input
Financial Capital	Operating costs NT$37.456 billion Funds used by organizations to produce products or provide services	Employee benefits costs NT$25.428 billion
Intellectual Capital	The Group has obtained 12 patents. Knowledge-type intangible assets	Electric Vehicle ETN product designed by Yuanta Securities was listed. Yuanta Funds issued Yuanta Taiwan High-yield Leading Company Fund A. Yuanta Funds issued Yuanta Global NexGen Communication Innovative Technology ETF.
Human capital	Local talent development and cultivation costs of NT $43.54 million Human skills, abilities and experience, and motivation for innovation	Entire staff invested 651,622 hours into learning to enhance workplace competitiveness.
Natural Capital	Green procurement NT$212 million. All renewable or non-renewable environmental resources and processes in support of organizational operations.	Energy Saving Action Project NT$ 7.96 million.
Social Relations Capital	Charitable donations of NT$113 million Relationships with the community and other stakeholder groups as well as related input and planning for social participation.	The Group’s volunteer commitment reaches 2,989 number of people; Volunteer input 7,386 hours.
Production Capital	Operation locations Yuanta Securities: 147, Yuanta Banks: 149 , ATMs: 505 The physical objects that are manufactured for use by the organization to produce products or provide services.

In 2022, the quantified sustainability impact of Yuanta Financial Holdings was NTD 1,576,881,556 thousand. The positive impact mainly comes from the economic value driven by investment and financing activities, the development of employee engagement, and the social cohesion and social welfare created that by investment, and the renewable energy supports the reduction of greenhouse gas emissions and the development of the green energy industry. The negative impact comes mainly from the social cost of carbon emissions in the target industries. In the future, we will continue to implement and promote sustainable financial services as our top priority; we will focus on stakeholders and create long-term social benefits to promote and implement sustainable development strategies and action plans.