Fubon Financial : Demonstrate Three Highlights of Climate Financial Disclosure! Fubon Financial Holdings Released 2022 TCFD Report

As a leader in climate issues, Fubon Financial Holdings has led the domestic financial industry in releasing Taiwan's first TCFD report since 2021. Today, Fubon Financial Holdings formally released the 2022 TCFD report, which has carried out the Task Force on Climate-related Financial Disclosures (TCFD) for three consecutive years. This year, Fubon Financial Holdings commissioned a third party, British Standards Institution (BSI), to conduct a TCFD compliance assessment for the first time, and was awarded the highest level of "Level 5+: Excellence". Through continuous refinement of climate change risk management, Fubon Financial Holdings has improved the climate resilience of its value chain, highlights the "Run For Greenᵀᴹ", and actively moves towards net-zero carbon reduction in 2050.

Richard M. Tsai, Chairman of Fubon Financial Holdings, pointed out that with the announcement and amendment of "Taiwan's Pathway to Net-Zero Emissions in 2050" and the "Climate Change Response Act", the industry is facing the pressure of active transformation and climate risk control, and the year 2022 can be considered as the first year for enterprises to face the direct confrontation of net-zero transformation. Fubon Financial Holdings, with its rigorous and practical risk management, will work with its subsidiaries to actively support low-carbon transformation enterprises, strengthen the culture of responsible investment, assist in the development of clean energy, and develop insurance products to enhance the resilience of assets in the hope of working with Taiwan's industries and society to move toward a better and more sustainable future.

The BSI's compliance assessment examined the extent to which Fubon Financial Holdings' TCFD report complies with the Financial Stability Board's (FSB) proposed framework for financial disclosure through a five-item scale (effective disclosure principles, governance, strategy, risk management, and indicators and goals). In addition to the common framework, the assessment also examined the supplementary guidelines for insurance and bank, and finally obtained a high score of over 90 points, which means that more than 90% of Fubon Financial Holdings' 2022 TCFD report complies with the TCFD's financial disclosure framework, and recognized with the highest rating of "Level 5+: Excellence".

Since 2021, Fubon Financial Holdings has set a threshold for the entry and exit of high carbon emission sensitive industries in the investment and financing goals, and set a green finance investment and financing goals to proactively encourage enterprises to undergo green transformation. After achieving the 2025 green finance goal of NT$2.45 trillion ahead of schedule in 2022, Fubon Financial Holding further raised the goal by 14%, increasing it to NT$2.8 trillion, to continue to drive the growth of the low-carbon capital market.

In 2022, Fubon Financial Holdings' TCFD report has been certified by a third party to be in compliance with the TCFD framework issued by the FSB, and there are three highlights this year: (1) Focusing on the latest international trends to formulate a decarbonization strategy for investment and underwriting, Fubon Insurance has become the first insurer in Taiwan to formulate a decarbonization strategy, with the goal of no longer underwriting companies that have no concrete carbon reduction actions or low carbon transformation plans in the coal mining/relevant infrastructures, coal-fired power generation, and non-typical oil and gas industries in 2050. (2) In accordance with the PCAF methodology, Fubon Financial Holdings will continue to strengthen the disclosure of financial carbon emissions, conduct a carbon inventory of its investment and financing positions, and has reduced its financial carbon emissions by approximately 8% by 2022 as compared to 2021. Fubon Insurance will also take the lead in the industry by fully disclosing the carbon emissions of its commercial insurance and personal automobile insurance policies. (3) Based on the banking industry's climate change analysis operation planning which was regulated by the competent authority, we have refined the climate change scenario analysis for climate risk management and established the consistent climate scenarios and related climate parameters to quantify the financial impacts.

Fubon Financial Holdings not only promotes industrial transformation through rigorous climate risk management, but also starts from its own operational emissions. Not only does it exceed its carbon reduction goals in scope I and II, reducing carbon emissions by 16% in 2022 as compared to the base year of 2017, but it also carries out gray power reduction through the purchase of additional renewable energy and the construction of additional solar panels.

Since 2017, Fubon Financial Holdings has been actively joined the international organizations and initiatives which have included the Equator Principles (EPs), the Principles for Responsible Investment (PRI), the Principles for Sustainable Insurance (PSI), the Principles for Responsible Banking (PRB), and other international standards and regulations. In 2022, Fubon Financial Holdings has stepped up its efforts, not only being approved by Science Based Targets (SBT), becoming a member of Renewable Energy 100 (RE100), joining the Partnership for Carbon Accounting Financials (PCAF) and Asia Investor Group on Climate Change (AIGCC), Richard M. Tsai, Chairman of Fubon Financial Holdings, also shared with 1,000 of the world's top corporations on the topic of "How the Financial Sector Leverages the Power of Capital to Drive the Industrial Economy" at the annual meeting of the World Economic Forum (WEF) in January 2023, making him the first entrepreneur in Taiwan to publish an ESG opinion leader article at the WEF.

Looking ahead, Fubon Financial Holdings will continue to uphold the brand spirit of "Be positive All possibleᵀᴹ" and cooperate with the industry, government and academia at home and abroad to expand the influence of climate finance, promote the "decarbonization" strategy from the inside out, shoulder the ability of the financial industry as a gatekeeper and capital guide, and accelerate the sustainable transformation of the corporate value chain.

 Fubon Financial Holdings 2022 Sustainability Report Link: https://bit.ly/ Fubon Financial Holdings 2022 Sustainability Report