Taishin FHC Corporate Social Responsibility Report 2019

64 Sustainable Finance Business Development for Sustainable Finance 3-2 Taishin Bank actively issues loans to green energy companies in renewable energy, energy-saving technologies, and environ- mental protection, in response to the Sustainable Develop- ment Goals (SDGs) declared by the United Nations and major domestic policies such as nuclear-free homeland, energy transition, environmental protection and greenhouse gas emission reductions, etc. Through directing funds to green energy technology, we stimulate enterprises to pursue the low-carbon economy and sustainable development. In November 2019, Taishin Bank signed the Equator Principles (EPs) which integrates with our voluntary compliance with the United Nations Principles for Responsible Investment (PRI) framework, and incorporates the three major considerations of ESG into its investment and financing assessments. Taishin takes the risks of climate change and other environmental challenges into account during its daily operations as well. In addition to implementing Taishin’s Green Finance Standards throughout the group, we also are improving our positive impact on the financial industry through setting targets and continuous engagement with stakeholders. Taishin’s core competencies are closely related to the requirements of the six Principles for Responsible Banking (PRB), such that moving forward we expect to benefit from sustainable economic development and realize the vision of responsible develop- ment as a bank. In addition to following the global principles and Taishin’s own specifications, the drug industry, illegal weapons manufacturing and gambling industry are listed as the relevant industries that refuse to undertake or should be declined by customer attributes according to the high risk factor assessment results. Sustainable Finance Policy Taishin’s Core Competencies with PRB Principles Principle 1. Alignment SDGs Paris Agreement Principle 4. Stakeholders Principle 2. Impact and Target Setting Principle 3. Clients & Customers Principle 6. Transparency and Accountability Principle 5. Governance and Culture Impact Valuation and Measurement Analysis for Material Topics CSR Committee Responsible Investment and Sustainable Finance Follow PRI Taishin FHC Green Finance Principles Taishin Bank Stewardship Principles Taishin Bank signed Equator Principles Risk Management Committee Taishin FHCCSR strategy & target v.s. SDGs TCFD (Task-force on Climate related Financial Disclosure) 1. Analysis for Risk and Opportunity 2. 2°C scenario analysis Digital Banking Business Financial Inclusion Annual Report Financial Statement CSR report FHC website Bank website CDP ESG review process- KYC/CDD