1. The Bank established a functional committee, the Sustainable Development Committee (previsouly the CSR Committee), in 2018 to be responsible for promoting sustainable development of the Bank. Chaired by the Chairman of the bank, the Committee currently consists of 5 members with the President as an ex-officio member and the other three being independent directors of the Bank. The Committee is responsible for reviewing mid- and long-term sustainability strategies and annual targets, reviewing sustainability action plans, monitoring and reviewing results of mid- and long-term sustainability strategies, annual targets, and action plans, reviewing the standards for preparation of sustainability reports, and reviewing other sustainability related matters.
2. The Sustainable Development Committee convened 3 times in 2022. Please refer to "(3) Sustainable Development Committee Activities" under "3. Operations of Corporate Governance" of this Chapter (page 39) of the annual report(2022) for the composition, responsibilities, operation, and agendas of the Sustainable Development Committee.
3. There are currently 6 subordinated units under the Sustainable Development Committee which include Corporate Governance, Customer Rights, Sustainable Finance, Sustainable Environment, Social Benefit, and Employee Care. The subordinated units are formed by various units at the head office and responsible for performing sustainability related tasks. Team meetings are held regularly, and implementation results of mid- and long-term sustainability strategies and stakeholder communication are reported to the Sustainable Development Committee as well as the Board of Directors.
4. The Board of Directors oversees implementation of sustainable development at the Bank. Starting with the banking business, the Board furthers a healthy and sustainable approach to top-down business management on an ongoing basis in order to achieve annual sustainability targets. Stakeholder communication, mid- and long-term sustainability strategies and their results above were reviewed by the Board of Directors on March 9, 2022, September 21, and December 14, 2022.

1. Risk assessment covers business activities and services of TBB and its subsidiaries. The scope of disclosure includes sustainability performance from January 2022 to December 2022. Please refer to page 345 of the annual report(2022) for the scope of impact on the value chain.
2. The Bank follows the principles of the GRI Standards and gathers information on relevant issues through stakeholder surveys. The process identifies material environmental, social, and governance issues followed by the Bank's stakeholders or relevant to the Bank's business. In addition, risk management policies are implemented with respect to risk assessment on material GRI issues. Please refer to page 344-351 of the annual report(2022) (Material Issues).

• To save energy on a sustained basis, the Bank complied with the ISO50001 Energy Management and published the energy policy on our official website, and built the management system and regulations for energy usage. The head office building was awarded the certificate for ISO50001 Energy Management System, which was verified by SGS Taiwan Limited (SGS).
• The head office building has been certified by the ISO14001 environmental management system, which was verified by SGS Taiwan Limited (SGS).
• To move towards the terget of net zero, the Bank has been certified by the ISO14064-1 greenhouse gas emission inventory system, which was verified by SGS Taiwan Limited (SGS), and covers the head office building, Linkou IT center and all domestic branches.

• TBB supports green office by signing the "Green Procurement Commitment for Private Enterprises and Organizations," giving priority to products with environmental labels and implementing green living in the workplace through procurement source management. With the procurement amount in 2020 as the basis and an increase rate of 2 % in the annual procurement amount, the green procurement amount in 2020 was NT$98.22 million (base year), and that amount has reached NT$115.28 million in 2022, an increase rate of 17.36%. The Bank has been recognized as the "Outstanding Green Procurement Institution" by the Environmental Protection Agency of the Executive Yuan and the Environmental Protection Bureau of Taipei City for 11 consecutive years.
• The Bank actively responds to the use of renewable energy. It has inventoried the entire self-owned building and established solarpowered branches. In addition to blocking sunlight from the roof of the building to reduce the temperature, the generated electricity is prioritized for use by the branches. Currently, TBB has 5 solar-powered branches, including Ta Fa, Ta Yuan, Ming Hsiung, Tainan, and Hsing Chung branches, with a total installed capacity of 108.025 kW self-generated for self-use, and the estimated annual power generation is 134,000 kWh. In the future, the Bank will continue to implement more solar-powered branches to self-generate power for self-use, in order to enhance the use of renewable energy.
• The implementation of solar-powered branches is as follows:
  

  Solar-powered branch	Established year	Installed capacity (KW)	Estimated power generation (kWh)	Usage
  Ta Fa	2017	28.8	36,000	Wholesale
  Ta Yuan	2019	16.8	21,000	Wholesale
  Ming Hsiung	2020	15.25	19,000	Self-generated for self-use
  Tainan	2021	49.725	62,000	Self-generated for self-use
  Hsing Chung	2022	43.05	53,000	Self-generated for self-use

1. The Bank has disclosed the "Human Rights Policy of Taiwan Business Bank" and specific management plans on its official website. The Policy applies to employees in all business locations to ensure that the Bank's employees are treated equally regardless of gender, race, age, marital and family status, and that equal remuneration, employment conditions, training, and promotion opportunities are implemented, so as to protect the legitimate rights and interests of employees. In accordance with the characteristics of the financial industry and operational development strategies, the Bank emphasizes human rights issues, such as "protecting workplace human rights," "providing a safe working environment," "supporting freedom of association and collective bargaining right," and "protecting personal information and cyber security," and implements measures to protect the basic human rights of all employees, customers, and stakeholders to fulfill its corporate social responsibility.
2. The Bank examines its own operations, value chains, new business activities (such as mergers and joint ventures), and other related activities every year through methods such as paying attention to major social issues, data monitoring, and surveys, in order to identify and evaluate groups facing risks and potential human rights risks. The Bank then develops human rights issue control plans based on these potential risks, and continuously monitors and improves the results of plan implementation. The Bank also discloses its specific management plans for the annual human rights management policy in the Bank's Sustainability Report and under the section of Sustainability/Society on its official website.

1. The Bank provides various employee welfare measures, including education, training, leave, retirement system, and others. Please refer to page 97 of this annual report(2022) for details.
2. The Bank observes workplace diversity and equality and provides female and male employees with equal remuneration conditions and promotion opportunities. For sustainability and inclusion oriented economic growth, the Bank also consistently has more than 40% of the management positions occupied by female employees. On average, 55.20% of employees, 46.30% of managers and 41.40% of senior managers were females in 2022.
3. To attract and retain outstanding financial talents and to share the operational results with employees, the Bank stipulates in its Articles of Association that if there is a profit in the current year, except for reserving an amount to offset the accumulated losses from previous years, 1% to 6% of the remaining profit shall be allocated as the remuneration for employees. In 2022, the employee remuneration amount was NT$ 451,457 thousand. In addition, the Bank has established the "Directions for Salary Payment to Employees," "Directions for Payment of New Year, Festival, and Performance Bonuses," and "Directions for Payment of Remuneration to Employees" as part of its remuneration policy. By integrating the performance of individuals, units, and the entire Bank, and after making an evaluation based on the Bank's "Directions for Employee Audit", "Directions for Performance Audit," and "Directions for Administrative Incentives for Performance Audit," the Bank provides a reasonable and competitive remuneration system, which includes bonuses linked to the Bank's financial performance indicators, such as pre-tax net profit achievement rate, return on assets, return on equity, NPL ratio, and coverage ratio, as well as individual performance evaluation results. In addition, the Bank uses the employee year-end performance evaluation results as a criteria for salary increase. In addition to the above directions, the remuneration policy for managers also refers to the general standard within the industry, and the Bank proposes the remuneration arrangements for managers and related performance evaluation every year at the Remuneration Committee meetings, and reports to the Board of Directors for review.

1. The Bank has established its occupational safety and health policy, regulations, codes, and management manuals in accordance with the relevant provisions of the Occupational Safety and Health Act. The Bank promotes the implementation of occupational safety and health management systems, complies with relevant laws and requirements on occupational safety, and provides employees with a safe and healthy working environment. All units shall work together to prevent and eliminate hazards, and reduce risks related to occupational safety and health. The Bank is committed to continuous improvement to ensure sustainable operations and has made this an important business audit item.
2. The Bank has implemented the "ISO 45001 Occupational Safety and Health Management System" at the head office building since April 8, 2022. Occupational safety and health managers of various departments at the head office building were provided with 4 months of educational training, with relevant contents solicited for opinions from departmental representatives at the head office building. The Bank has also established the occupational safety and health management manual and policy. During the implementation period, in addition to identifying occupational safety and health regulations and complying with relevant audits, consultants were engaged to conduct on-site inspections at the head office building and relevant departments were requested to make improvements based on the inspection results. The Bank also considered organizational background environment, internal and external issues, conducted hazard identification and risk assessment, established target plans, provided internal audit training, and performed management review, etc. On July 29 and August 11, 2022, the Bank passed the external audit of the 1st and 2nd stage system verification by BSI, the British Standards Institution, and had relevant departments complete the improvement matters recommended in the audit report, with the occupational safety and health policy committed and signed by the Bank's President. On August 23, 2022, the Bank has received the "ISO 45001 Occupational Safety and Health Management System" certificate, which covers all units of the Bank, and the verification target includes all employees and contractors at the head office building.
3. The Bank provides regular health inspections every 1 to 2 years and 1 hour occupational safety training for employees on active duties every 3 years, respectively. the Bank also engaged visiting service doctors, recruited regular nursing personnel, and established a health service and stress-free activity center and breastfeeding room to care for the employees' health and address the importance of health. In the current year, there were 28 cases of occupational accidents with a total of 28 employees involved, accounting for 0.52% of the total number of employees. The importance of safety has been re-iterated to avoid the recurrence of accidents.

1. The Bank established the annual employee training plan according to different job functions and experiences of employees and provides comprehensive programs including general knowledge courses for new employees, business fundamentals courses, advanced courses, workshops, trainings for managers and various seminars. The Bank also assigns relevant personnel to participate in professional training programs organized by external institutions or engage external professional lecturers to provide lessons, cultivating the professional skills and knowledge of our employees, exerting the effect of training-application integration, so as to improve the career development potentials for our employees.
2. In 2022, a total of 405 courses were offered (including 29 business fundamentals courses, 349 (advanced) business workshops, 7 courses for managers, and 20 seminars/explanatory sessions, with a total of 38,674 trainees. On average, each employee received training approximately 7.1 times per year. The effectiveness of various business fundamentals course training was tracked, with an average training effectiveness rate of 98.20% in 2022.

The Bank has followed relevant regulations and international guidelines regarding customer health and safety, customer privacy, marketing, and labeling of products and services, and also established the following internal regulations:

1. To maintain the safety of consumers' personal data, the Bank has established the "Personal Data Management Policy," "Precautions for Personal Data and Equipment Security Management," "Personal Data File Security Maintenance Plan and Handling of Personal Data after Termination of Businesses," "Operating Procedures for Personal Data Security Incident Response, Notification and Prevention," "Operating Procedures for Personal Data Collection, Processing, Utilization and Management," and "Measurement Indicators for Personal Data Management System," in accordance with the "Non-Governmental Organization Personal Data File Security Maintenance Measures Designated by the Financial Supervisory Commission" and relevant personal data protection laws and regulations, so as to implement appropriate management mechanisms for personal data protection.
2. For the financial products or services provided by the Bank, the Bank has established the "Treat Client Fairly Policies," "Treat Client Fairly Strategies," "Consumer Protection Policy" and "Consumer Protection Operating Procedures" in accordance with the "Implementation Rules of Internal Audit and Internal Control System of Financial Holding Companies and Banking Industries," "Principle for Financial Service Industries to Treat Clients Fairly," "Financial Consumer Protection Act," and other relevant laws and regulations, so as to ensure that the design, advertising, sales, contract fulfillment, service consulting, and customer complaint handling processes take into account our customers, such as whether the features of the products or services are suitable for customers and whether the sales process is designed to meet customer needs, to achieve the goal of fair and reasonable treatment of customers.
3. To enhance the efficiency and quality of consumer dispute resolution, the Bank has established the "Consumer Disputes Handling System" and "Directions for the Processing of Customer Complaints" to regulate the handling procedures and timeliness for consumer disputes or complaints, in order to implement operational risk control and protect the rights and interests of consumers.

1. The Bank has disclosed the supplier management regulations on its official website and required in the supplier contract that suppliers shall fulfill their social and environmental responsibilities, while requesting them to sign the "Human Rights and Environmental Sustainability Commitment Letter" and " Corporate Social Responsibility Self-Assessment Form" to urge them to take on the necessary responsibilities. The "Corporate Social Responsibility Self-Assessment Form" evaluates suppliers based on four major aspects: economy, environment, society, and legal compliance. The Bank assesses and grades the performance of suppliers based on their responses to the form. Further details can be found on the Supplier Management website: https://tbb.tw/4whyqw.
2. The Bank has additionally released the implementation plan of the supplier management regulations. During the procurement, investment soliciting, or transaction period, we regularly check whether suppliers have violated relevant laws and regulations on the websites of the Environmental Protection Administration, Executive Yuan, and the Ministry of Labor, while strengthening communication, evaluation and guidance, and rewards, to motivate suppliers to duly take actions in ESG related issues. Further evaluation is conducted to determine whether suppliers have violated environmental and social issues and have been identified as having a negative impact. Different supplier counseling and education are provided based on the impact type. Further details can be found on the Supplier Management website: https://tbb.tw/4whyqw.
3. It is stipulated in the contracts that if a supplier violates environmental protection and labor-related laws and regulations, the Bank may refuse its participation in a bid. If a supplier has a material impact on the environment and society, the Bank may terminate the contract after it determines that the violation is true.

1. The Bank's 2022 Sustainability Report was prepared in accordance with "Taiwan Stock Exchange Corporation Rules Governing the Preparation and Filing of Sustainability Reports by TWSE Listed Companies", GRI Sustainability Reporting Standards and Sustainability Accounting Standards Board (SASB) Standards.
2. The Report obtained the Independent Assurance Opinion Statement from British Standards Institution based on the AA1000 Assurance Standard V3 pursuant to the GRI Sustainability Reporting Standards, and obtained the Independent Assurance Report from Ernst & Young Accounting Firm in accordance with the Statement of Assurance Engagements Standards No. 1, "Assurance Engagements Other than Audits or Reviews of Historical Financial Information" published by Accounting Research and Development Foundation.
3. The Bank is in the process of preparing the 2022 Sustainability Report.