Stakeholder Sustainable Corporate Responsible Innovative Employee Tender Engagement Business Strategy Governance Finance Service Care Care Environmental Sustainability

Award of the Energy Conservation Leadership Awards in Business and Industry Group A. Fubon Financial Holdings has also received an honorable award issued by the Bureau of Energy, Ministry of Economic Affairs for the significant results of energy conservation from 2016 to 2018 as a company that pledges to voluntarily conserve energy. In 2019, Fubon Life was awarded a bronze medal in the first National Enterprise Environmental Protection Awards by Director Chang Tzi-Chin of the Environmental Protection Administration, , and was arranged to receive the honor at the Presidential Office Building. Fubon Financial Holdings complies with energy policies and enacts measures accordingly. Target-oriented monitoring and energy conservation measures are adopted as well to actively help Fubon’s subsidiaries enhance energy performance. Our primary action plans and implementation results are as follows.

Action Plans Implementation Results in 2019 In 2019, Fubon continues to replace old lighting in the cafeteria of Fubon IT Building, the gym in Fubon Install Energy- Life Building, Fubon Financial Building, and branch units across . A total of 6,071 energy-saving Efficient Lights lights were installed, contributing to a reduction of 423,668 kg CO2e. (See detailed carbon reduction results of installing energy-saving lights over the past four years in Appendix 9.4.6.) The old AC system replacement and waterside system efficiency improvement constructions carried out Replace Air in Taipei Fubon Bank’s Zhongshan Building, as well as the improvement plans scheduled to be carried Conditioning out in Taipei Fubon Bank’s Beituo Building, will contribute to an estimated 201,048 kg CO2e reduction per Equipment year. The replacement of 11 old elevators in Taipei Fubon Bank’s Financial Building will be completed by Replace Old 2021. Meanwhile, the enhanced computer control system and energy conservation facilities added will Elevators contribute to an 89,666 kg CO2e reduction per year. Energy conservation measures for data centers enacted in 2019: Seal off unused cabinet spaces and PUE Reduce raised floor openings and turn off unnecessary air conditioning. In 2019, data center PUE dropped from Data Center 1.81 in 2018 to 1.79. Total energy consumption in 2019 is 10,009,600 kWh, reducing emissions by 23,878 Power Usage kg CO2e compared to 44,800 kWh in 2018. Effectiveness Stand-alone electric meters are installed in data centers to monitor power usage effectiveness, and cold Fubon Life was awarded a bronze medal in the first National Enterprise Environmental Protection Awards (PUE) air aisles sealed off to increase air conditioning performance. By 2020, an estimated 147,801 kg CO2e can be reduced per year. and was given the honor at the Presidential Office Building by Vice President Chen Chien-Jen. (Left: Director Chang Tzi-Chin of Environmental Protection Administration, Executive Yuan. Middle: Vice President Chen * Calculation of the sum of carbon reduction in CO2e resulting from new energy conservation measures enacted in 2019: Chien-Jen; Right: Senior VP Chou Chi-Chun of Fubon Life) 423,668+201,048+23,878=648,594 kg * Carbon emissions were mainly reduced through the installment of energy-saving lights, replacement of old air conditioning equipment and energy conservation measures enacted in data centers. 6.3.4 Supporting Investment in Renewable Energy

Echoing global trend in compliance with government policies, as well as fulfilling the Company’s environmental protection commitments, Fubon Financial Holdings continues to support the development of renewable energy. In addition to purchasing green energy from Taiwan Power Company from 2014 to 2017, we have been setting up solar panels since 2016.

Action Plan Implementation Result in 2019

Solar panels at Fubon Insurance’s Pingtung Building, Taipei Fubon Bank’s Taipei Fubon Financial Holdings and Taipei Solar Panels Installed in Zhongshan Building, Fubon Insurance’s Kaohsiung Zhonghua Building, Fubon Life’s Fubon Bank were awarded the Response to the Government’s Taipei Dunnan Building and Taichung Wenxin Building generated 91,246 kWh of Highest Distinction and Excellence Green Energy Policies electricity. Taipei Fubon Bank’s Taipei Zhongshan Building acquired 28 Renewable Energy Certificates with a total of 38,237 kWh electricity generated. Award of the 2019 Taipei Energy Conservation Leadership Awards in Business and Industry Group A.

83 Stakeholder Sustainable Corporate Responsible Innovative Employee Tender Engagement Business Strategy Governance Finance Service Care Care Environmental Sustainability

Establishing Solar Rooftop Panels Fubon Financial Holdings has reached our target by generating a total of 91,246 kWh solar power in 2019. It is a 94.32% increase from the 44,290 kWh of power generated in 2018,

contributing to the reduction of 48,634 kg CO2e. Among all the power-generating buildings, Taipei Fubon Bank’s Taipei Zhongshan Building has been generating power since 2019, ● With 2016 as the baseline year, a target was set to increase Targets for resulting in 28 Renewable Energy Certificates. It contributed to a 28,000-kWh decrease electricity generation by 30% in 2019. solar power in purchased power, which is equivalent to the reduction of 14,924 kg CO e. (See detailed ● The electricity generated in 2016 is 7,987 kWh. The target 2 generation statistics about solar power generation and carbon reduction over the last four years in for 2019 is 10,383 kWh. The completion rate is 878.8%. Appendix 9.4.8.)

Taipei Fubon Bank Solar Panel Installation Status Zhongshan Building In recent years, Fubon Financial Completed in July, 2018 Holdings has been installing Device capacity: 35.4kW solar panels on rooftops of Power generated in 2019: the Company’s buildings. As 38,237 kWh of 2019, the Company has completed setting up rooftop solar power systems at five locations. The completion date, Fubon Life Taichung Wenxin Building Fubon Life Taipei capacity, and power generation Hanover Building volume in 2019 are as follows. Completed in January, 2018 Completed in April, 2016 Device capacity: 5.2 kW Device capacity: 8.6kW Power generated in 2019: Power generated in 2019: 5,247 kWh 8,767 kWh

Total capacity of all installations has reached Fubon Insurance Kaohsiung Chunghua Building 81.15 kWh Wind turbines and solar panels installed on the rooftop of Fubon Life’s Taipei Dunnan Building. (Started generating power in 2019) Completed in December, 2018 Fubon Insurance Device capacity: 19.47kW Pingtung Building Power generated in 2019: 25,573 kWh Completed in July, 2017 Device capacity: 12.48 kW Power generated in 2019: 13,422 kWh

84 Stakeholder Sustainable Corporate Responsible Innovative Employee Tender Engagement Business Strategy Governance Finance Service Care Care Environmental Sustainability

Purchasing Green Power Title Content Fubon Financial Holdings has been actively involved in the government’s Green Power Pilot Program since Frequency: Quarterly 2014. Up to 2017, Fubon has remained the top company in financial services for four consecutive years ●

Office ● Method: 2 environmental impact assessment committee members are appointed for eachoffice having purchased a total of 4.748 million kWh of green power. (See detailed statistics on green power Environmental building (18 members in total) to conduct spot inspections each season and propose improvement purchased in Appendix 9.4.7.) Protection plans and key efforts to be made accordingly. Competition ● Incentive: The company organizes major events to announce winners of the annual Chief Building Manager Award and Building Manager Award. 6.3.5 Strengthening Green Operational Management Frequency: Annual Branch ●

Unit Energy ● Method: Various environmental protection training is held to educate employees, as well as tabulate Action Plans Implementation Results in 2019 Conservation energy consumption of the current year and the year prior. Competition ● Incentive: Top ten best-performing employees will be awarded bonuses or eco-friendly prizes. Quarterly office environmental protection competitions were held, and the chief building manager and building manager of the best performing building were openly praised and awarded at the 2019 Fubon Environmental Family Sports Day. Protection Competition Energy conservation competitions between business units were held. The top ten groups with the best annual energy-conservation scores were awarded eco-friendly prizes to encourage energy conservation (Prizes equivalent to NT$ 99,000 in value).

Green Spending on green purchasing was NT$36,092, a 6.10% increase. Purchasing

Green Purchasing Green Purchasing Spending Bar Graph Fubon Financial Holdings actively purchases ● products certified with the energy conservation label, the green mark (environmental protection 36,092 label), and the green building material label. The 34,018 number of purchased items and spending has 29,780 The Building Manager Award given at 2019 Fubon Family Sports Day. been on the increase over the years. In 2019, total spending on green purchasing is NT$ Green Building 36,092, which is a 6.10% increase by NT$2,074. 20 078 , The Buildings of Fubon Life were constructed in Honors Fubon Financial Holdings received in compliance with the green building label indicators. 2019: To further enhance energy efficiency and fulfill our “Outstanding Green Purchasing Promoting Unit” environmental protection commitments, Fubon worked by the Environmental Protection Administration, on green landscaping and obtained the “green building Executive Yuan label” and “Green Building Candidate Certificate”. “Outstanding Civil Enterprise and Group in Green The new construction project of Taichung Wenxin Purchasing” by the Department of Environmental Office building obtained the bronze-level Green Building Label Certificate. Protection, Taipei City Government “Honorable 2016 2017 2018 2019 Mention in Green Buying” by the Department of The Fubon Xinyi A25 Integrated Commercial Environmental Protection, New Taipei City Unit: NT$ 10,000 Building obtained the gold-level Green Building Candidate Certificate. Environmental Protection Competition The new hotel construction project of Linsen South Road Zhongzhen District obtained the gold-level To encourage employees to identify with and actively take part in the Company’s energy conservation and Green Building Candidate Certificate. carbon reduction efforts, Fubon Financial Holdings helps employees cultivate environmental protection The new construction project at No.354, Linyi 2nd The new construction project on Linsen South Road conscious habits in daily lives. Incentives and environmental protection education are given periodically Subsection, Zhongzheng Dist., Taipei City obtained obtained the gold-level Green Building Candidate through the “Office Environmental Protection Competition” and “Branch Unit Energy Conservation the Green Building Certificate. Certificate. Competition”.

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