Green Operations

Environmental Sustainability Management Strategy

In fulfillment of the 2050 net-zero emission goal and the SDGs, TCFHC implements Green Operations and reduces the impact of its business activities on the environment across 6 areas, which are "Energy Conservation and Carbon Reduction", "Energy Management", "Water Resources Management", "Waste Management and Circular Economy", "Environment and Biodiversity Education", and "Environment and Biodiversity Conservation". At the same time, TCFHC has set short-, medium-, and long-term goals for environmental sustainability and tracks the implementation status on a quarterly basis besides the phased review meetings once every 6 months to improve management measures on a rolling basis.

In an effort to deepen environmental sustainability, besides the Environmental Sustainability Taskforce under the Sustainable Development Committee, TCB is the first among state-owned banks to set up the "Environmental Sustainability Section" under the Administration Department to take charge of environmental management; it is also the supervisory unit for the Environmental Sustainability Taskforce. Environmental sustainability affairs are planned vertically in an integrated model to slow down or adapt to impacts of climate change with a plan and to consolidate the Group’s low-carbon operations.

In the face of global warming and impacts of climate change, TCFHC fulﬁlls its environmental sustainability commitments and responsibilities by formulating the Policies on Environmental Sustainability, Energy, and Resources as the basis for setting environmental and energy goals, defining a green corporate culture, enforcing green procurement, and strengthening the awareness of sustainable development. We proactively answer to the carbon emission reduction path, align with the international net-zero trend, and enhance climate change resilience.

Energy Conservation and Carbon Reductio

Global warming has become a stern challenge for the ecological environment and for mankind survival; extreme weathers are triggering disasters each day. Not responded to in time and with no restrictions on the use of resources, climate change can become worse and give rise to irreversible ecological risks. For the sake of mitigating the impacts of climate change, the Group proactively manages greenhouse gas emissions and is devoted to keeping global warming under control and within 1.5°C. We used the verification results from the "ISO 14064-1 Greenhouse Gas Inventory" completed for the ﬁrst time at all domestic and overseas locations in 2021 as the base year and set a science-based target (SBT), which was reviewed and approved in 2023. The Group's own operations (Scope 1 plus Scope 2) will see a reduction in absolute emissions by 50.4% in 2032 compared to the base year (2021), with an average annual decrease of 4.58%. For 2030, the reduction target is a decrease of 41.24% from 2021 and for 2025, it is 18.33% from 2021.

TCB continued to introduce multiple ISO verifications (certifications), including ISO 14064-1 Greenhouse gas (GHG) Inventory, ISO 14001 Environmental Management Systems, ISO 50001 Energy Management Systems, and ISO 46001 Water Efficiency Management Systems and combine the energy management EMS system, the technology-assisted carbon inventory, government energy diagnostic services, green procurement and green ofﬁce, green building label, and internal carbon pricing mechanisms. Through the Plan-Do-Check-Act (PDCA) cycle, external costs of greenhouse gas emissions are internalized and more empowerment is devoted to the identiﬁcation and control of risks and opportunities concerning carbon emissions on the stride towards low-carbon sustainable management.

GHG Emissions

The Group started the greenhouse gas inventory in a technology-assisted way in 2023. By the end of 2025, ISO 14064-1 greenhouse gas inventory was completed in a total of 329 locations domestically and internationally combined, covering Scopes 1 through 3. Among them, greenhouse gas emissions from self operations (Scopes 1 and 2) showed a reduction of around 36.34% from the base year (2021), accomplishing the phased goal of 18.33% by the end of 2025 and demonstrating the substantial accomplishments of the Group in greenhouse gas reduction and management.

In addition, the Group takes part in the international carbon disclosure project (CDP) every year and acts proactively in addressing environmental issues. Meanwhile, the Group was on the A List (leadership) in 2025, showcasing the transparency and international recognition of its greenhouse gas management and climate action.

Internal Carbon Pricing

To implement carbon reduction management and strengthen the concept that carbon emissions carry a cost, TCB introduced its Internal Carbon Pricing (ICP) mechanism in 2022. By internalizing the external costs of greenhouse gas emissions, TCB systematically examines the carbon emission costs generated from its operations and incorporates such costs into future investment decisions for energy conservation and carbon reduction projects. This is intended to enhance the Bank's overall carbon risk management capabilities and strengthen its climate resilience. At the same time, TCB has proactively adopted low-carbon operational measures and improved energy efficiency, thereby further enhancing the effectiveness of its energy conservation and carbon reduction efforts. TCB currently adopts the Implicit Carbon Pricing method, taking into account the energy-saving beneﬁts, procurement costs, and estimated service life of purchased equipment to calculate its internal carbon price and apply it as a reference for procurement decision-making. The internal carbon price is adjusted on a rolling basis each year. In 2025, the average carbon price was NT$6,482.17 per metric ton. Through this mechanism, TCB effectively guides equipment replacement and energy-saving investments, with an estimated annual carbon reduction performance of 67.82 metric tons of CO ₂ e.

To align with international standards and further reﬁne its management mechanism, TCB ofﬁcially introduced the Shadow Pricing method in 2026. By consolidating external carbon market prices, the social cost of carbon, prices recommended by the International Energy Agency (IEA), and internal historical carbon reduction costs, TCB has established a science-based pricing model and ofﬁcially announced a shadow price of NT$5,000 per metric ton, equivalent to approximately US$149.39 ^Note . This mechanism is designed to incorporate carbon cost considerations into operational processes, strengthen the efficiency of resource allocation, promote improvements in energy efﬁciency and low-carbon investments, and further inﬂuence the direction of strategic and ﬁnancial planning, thereby enhancing the forward-looking nature of low-carbon investment decisions.

Note: The amount was converted based on the Central Bank’s NTD/USD closing exchange rate of 33.47 on April 1, 2025, in line with the cutoff date of market carbon price data.

Carbon Credit and Carbon Offset

In order to implement carbon reduction and support national climate actions, TCFHC actively participated in the trading of the first batch of carbon credits on the Taiwan Carbon Solution Exchange in 2023. The purchased carbon credits will continue to be used to promote carbon reduction and carbon neutrality for the Group and its subsidiaries. Through the purchased carbon credits plan, TCFHC promotes the achievement of several SDGs and, while reducing corporate carbon emissions, also realizes universal values such as social inclusion and climate equity. In 2025, the ISO 14068-1 Carbon Neutrality Project was implemented; the ﬁrst carbon neutrality supplier conference took place; and 1 ton of CO ₂ e as the carbon offset limit was applied for and fulﬁlled and released on December 2, 2025 to ensure credibility and transparency.

Carbon Footprint and Carbon Labels

In order to achieve a sustainable consumption and service model for a low-carbon economy, the life cycle assessment method is adopted to enhance transparency in the input and output of product supply chains and services, energy and resources, and sources of carbon emissions with potential environmental impacts. The whole Group has passed external verification for "ISO 14067 Carbon Footprint" and obtained a total of 7 veriﬁcation statements. In addition, a total of 7 carbon labels for products or services have been obtained. These include TCB's "World Card", "LOHAS Card", "Head Office (Business Department) Counter Service", "Financial Online Service/Online Banking Front End – General Login Overview", CoAMC's "Self-Owned Real Estate Sales Service", BNP TCB Life's "Personal Insurance Service Policy", and TCS's "Online Investment and Wealth Management Services". In the future, TCFHC will continue to examine the carbon emission hotspots of its operating products or services provided, optimize energy conservation and carbon reduction actions, and strive to establish low-carbon operations or service models.

Carbon Reduction Incentive Competition

To achieve its carbon reduction targets, in addition to proactively promoting energy conservation and carbon reduction projects and implementing green ofﬁce practices, in 2025 TCB established the "Carbon Reduction and Green Living Incentive Measures for Business Units". For all business units across Taiwan, reduction targets were allocated based on total Scope 1 and Scope 2 carbon emissions. Units were ranked by their carbon reduction volume and achievement rate against the annual reduction targets, and incentive bonuses ranging from NT$10,000 to NT$100,000 were awarded.

In 2025, the total Scope 1 and Scope 2 carbon emissions of domestic business units participating in the evaluation amounted to 12,153.46 metric tons of CO ₂ e, representing a decrease of 456.06 metric tons of CO ₂ e, or approximately 3.62%, compared with 12,609.52 metric tons of CO ₂ e in 2024.

Note: In line with the emissions factor calculation basis used for GHG verification, the 2024 electricity emissions factor of 0.000474 metric tons CO ₂ e/kWh was applied.

Green Buildings

The head office building of TCB was constructed based on the 4 core principles of green architecture: "ecology, energy conservation, waste reduction, and health". It incorporates a variety of environmentally friendly and energy-saving designs that align with green building standards. In 2018, it received the EEWH Silver Label from the Ministry of the Interior. In 2023, it was further honored with the Silver Award at the Ministry of Economic Affairs' Energy Conservation Benchmark Awards and the Excellence Award in Category A in Taipei City's Zero-Carbon Benchmark Awards. In 2024, the building achieved the EEWH Diamond Label from the Ministry of the Interior and was once again recognized by the Ministry as a "Level 1+ Near-Zero Carbon Building", the highest rating in the existing Building Energy Efﬁciency Labeling System. In addition, to further the vision of sustainable architectural design and achieve harmonious coexistence with the planet, efforts have been made to promote the development of green buildings in other locations. As of the end of 2025, a total of 18 sites had obtained EEWH certiﬁcations (including 7 diamond, 1 gold, 2 bronze, and 8 certiﬁed labels) and a total of 4 sites had obtained the "building energy efﬁciency label".

Digital Paperless Operations

Energy Management

In order to reduce overall energy consumption, TCFHC introduced the "ISO 50001 Energy Management Systems" and, through various spontaneous action plans and improvement measures, is devoted to energy conservation, energy generation, and energy procurement. These efforts aim to improve energy efﬁciency and increase the proportion of renewable energy used, achieve energy-conservation goals, and fulﬁll the responsibility of protecting the environment.

The "Energy Management EMS System" became ofﬁcially operative in 2025, with support from the Administration of Commerce, Ministry of Economic Affairs. The main ofﬁce of TCB has more than 300 smart electricity consumption monitoring circuits in place; the layered and individualized monitoring architecture features smart meters set up on respective floors and in major electricity consumption areas (such as air-conditioning machine rooms and illumination) to capture electricity consumption information in real time. 17 branches are included at the same time. The EMS template is created reﬂective of the electricity consumption scale to gradually form the electricity consumption management baseline for precise control over the electricity consumption status and for a diagnosis of energy consumption of equipment. Meanwhile, dynamic environmental factors such as external temperature and humidity are combined and compared under identical conditions through the data analysis model to effectively calculate energy efﬁciency and to comprehensively boost energy efﬁciency and management efﬁcacy.

Energy Usage Overview

Electricity Conservation Management

Starting in 2024, TCB launched the "Voluntary Reduction Project for Replacing High-Efﬁciency Lighting and Air-Conditioning Equipment at the Beidou, Pingzhen, Fuxing, West Taichung, and Nanxing Branches". By replacing the existing lighting and air-conditioning equipment at these 5 branch ofﬁces, the project aims to improve energy efﬁciency, conserve electricity, and reduce GHG emissions. It was reviewed and approved by the Ministry of Environment on January 6, 2025. The period included is January 6, 2025 through January 5, 2035. It is expected that the reduction in greenhouse gases can reach 240 metric tons of CO ₂ e.

In 2025, "TCB Energy Conservation and Carbon Reduction", "Elimination and Replacement of Air-conditioning Equipment", and "Exhaust Fans and Air-Conditioning Equipment Energy Conservation Improvement" were the primary projects enforced to improve software and hardware equipment, adjust the managerial model, and to reinforce awareness of environmental protection among employees so that employees practice energy conservation and carbon reduction as part of day-to-day affairs. The total investment amounted to approximately NT$4.92 million, resulting in an estimated electricity saving of around 1,980,389 kWh and a reduction in carbon emissions of approximately 938.70 metric tCO₂ e—equivalent to the annual carbon absorption of 2.43 Daan Parks ^Note1 . The projected cost savings are NT$7.13 million, with an average payback period of just 0.69 years ^Note2 .

Renewable Energy Usage

In support of the government's 2050 net-zero emissions target and its energy transition policy, TCB has completed the setup of solar panel power generation system in 23 of its operational locations, with the actual total amount of power generated reaching 663,627 kWh and 657 renewable energy certiﬁcates certiﬁcations obtained, contributing to a reduction in carbon emissions of around 314.56 metric tons of CO ₂ e, which is equivalent to the annual carbon absorption of 0.81 Daan Parks.In addition, 31.4988 million kWh of renewable energy has been purchased. The renewable electricity wheeling completed in 2025 comes to 8.325 million kWh, with 8,056 renewable energy certiﬁcates obtained, contributing a reduction in carbon emissions of around 3,946.05 metric tons of CO ₂ e, which is equivalent to the annual carbon absorption of 10.21 Daan Parks. Efforts will continue in the future to respond to the national net-zero emission policy by gradually increasing the ratio of renewable energy used.

Green Leasing

To effectively help lessees fulﬁll ESG carbon reduction goals and to realize a win-win situation for the ﬁnancial institution and corporate clients in terms of the joint value created and shared interest and prosperity, TCB, with its own operational locations in the Ximen Building as the demonstration, signed the Green Leasing Agreement with the lessee Securities and Futures Institute on March 4, 2026 applying the 2.0 wheeling mechanism that features a single account with multiple users so that lessees in commercial buildings can have access to renewable energy and renewable energy certiﬁcations; it helps integrate renewable energy purchase and distribution mechanisms and satisfy the needs of enterprises to use renewable energy and to reduce carbon emissions from power consumption.

Fuel Management

To make it possible for employees to make green office part of their day-to-day affairs and to gradually eliminate and replace old company vehicles and motorcycles with high-efﬁciency and low-fuel-consumption ones and electric motorcycles, A "Hybrid Vehicle Control Form" has been designed to implement data reporting and control, thereby reducing fuel consumption in company vehicles. The Group has rented a total of 213 environmentally friendly or energy-certiﬁed vehicles for ofﬁcial use since 2022 and continued to encourage employees to use public transportation instead of cars and motorcycles when commuting or traveling for business, or share rides in dispatched company vehicles in addition to prioritizing video conferencing over physical meetings or training courses to reduce energy and resource consumption and lower carbon emissions.

Water Resources Management

Global climate change has led to increasing water resource scarcity. Responding to the United Nations "SDG 6 Clean Water and Sanitation," the TCB employee training center and central processing center have been veriﬁed for "ISO 14046 Water Footprint". The water footprint impact analysis helps improve water resource utilization efﬁciency, reduce environmental impacts relating to water throughout the life cycle of products or services, and optimize water resource management.

To constantly reduce water consumption, the head ofﬁce building and IT Department of TCB continued to introduce the "ISO 46001 Water Resources Efﬁciency Management System", seeking opportunities to recycle water, improve major water facilities, and enhance water utilization efﬁciency through reduction, replacement, and reuse, thereby fulﬁlling the water conservation goal of the Group, that is, an annual reduction of 1% in water consumption from the mean of the preceding 3 years.

Water Resource Usage Overview

Water-saving measures

Waste Management and Circular Economy

To reduce negative environmental impacts and achieve resource sustainability, TCFHC has implemented the “ISO 14001 Environmental Management Systems” and formulated waste management measures to promote a circular economy through resource recycling, green procurement, and renting instead of buying. In addition to practicing the 3R environmental protection policy—reduce, recycle, and reuse—and increasing the beneﬁts of waste recycling and reuse and concurrent deﬁning of target waste (non-recyclable) of the Group in the future (2025 onwards), which is adjusted to be a reduction of 1% a year from the preceding year to constantly advance in waste reduction goals and to supervise over and urge the enforcement of reduction, TCFHC also purchases environmentally friendly products, green building materials, and recyclable items with government-approved environmental protection, energy-saving, and water-efﬁciency labels.

In addition, to boost the idea of circular economy and sustainable resources among employees, related meetings, trainings, and education continue to take place for the promotion of reutilization of resources, reduced waste and waste, among other knowledge. Meanwhile, to urge respective parties to properly sort and separate garbage and records, resource recycling and waste management are included as part of the "Occupational Safety and Health and Safety Protection and Supervision Process" and the "Self-Inspection Worksheet for Business Units". The asset sharing platform is promoted at the same time to match used public properties so that the lifespan of ofﬁce supplies may be extended. Exchange of used items, recycling of waste batteries, and free (waste) marketplace and beach cleanup, among other events, are available to boost environmental protection awareness among employees.