台新金控

• Taishin FHC used the list of 19 sustainability issues identified in 2021 as the basis and appointed an external professional sustainability consultant to redefine the list based on the impact of the issues.
• Taishin FHC refocused on the potential positive and negative economy, environ-ment, and people, and social impacts of each issue. For instance, the "climate change strategy" issue was redefined as "climate finance" and "climate change impacts" based on the direction of the impact/ influence. They refer to positive/negative impacts of climate change.
• After refocusing on the list of 19sustainability issues, Taishin FHC identified 10 issues with positive influence and 14 issues with negative impact.

• The 21 units under the jurisdiction of the Sustainability Committee of Taishin FHC evaluated the impact of the 24 positive influences/negative impacts based on the degree of impact and the likelihood of occurrence.
• The comprehensive assessment of the degree of impact focuses on the value chain of the impact (e.g., whether it involves multiple value chains), significance of the impact, and whether it can be mitigated or remedied through relevant management measures.
• The comprehensive assessment of the likelihood of occurrence accounts for the number of related impacts that had occurred in the past and their frequency.

• In the analysis process, add special weights to Taishin's three major sustainability strategies including negative impact on human rights and the number of value chains affected by the impact.
• After the initial evaluation, the external sustainability consultants shall propose adjustment recommendations for the reasonable placement of issues.
• The management of Taishin FHC also used financial significance, the other aspect of "double materiality", to provide a corrective opinion on its impact on the Company's strategy and financial performance from the perspective of the management.
• We ranked the 19 sustainability issues in order of materiality based on the defined impacts and analysis results.

• We presented the analysis results to the Board of Directors for final approval and confirmed the material topics for the Sustainability Report this year.

• We appointed external professional sustainability consultants to provide recommendations on how to define the economic, environmental, and social impacts of these issues.

When assessing the likelihood of the occurrence of an issue, relevant units must give due consideration to the opinions of stakeholders in day-to-day communication, including but not limited to:

• Customer：For Wholesale Banking customers, identify whether they are involved in corporate governance, environmental pollution, and human rights violations to determine the impact of relevant issues on the value chain.
• Consumerbankingcustomers andconsumers：Reference their opinions and the complaints and verify whether there are infringements of related rights and interests such as privacy rights or other rights and interests of customers
• Employees：Reference their opinions and the complaints and verify whether there are cases involving workplace safety and infringements of human rights.
• Suppliers：Reference their opinions and evaluation results and verify whether there are cases involving corporate governance, environmental pollution, and infringements of human rights.

When determining the impact of the value chain on relevant issues and calibrating the evaluation results, the Company shall also take the views of stakeholders into account. Examples include:

• Investors：Adjust the materiality of the issues where appropriate based on day-to-day communication with institutional investors and the changes in their ESG ratings.
• Competent authorities：Adjust the materiality of the issues where appropriate based on related ratings, penalties, and policies of competent authorities (e.g., commitment to Net Zero by 2050 and implementation of the Green Finance Action Plan 3.0).

• The Corporate Sustainability Committee jointly reviews and discusses the analysis results of material topics and confirmed the 15 material topics for 2022.