By establishing a sustainable credit policy and establishing a risk assessment and management mechanism for BOT's ESG, we aim to effectively control ESG risks and seize opportunities for sustainable development, including measures such as explicitly prohibiting BOT from speculative business, not adding new financing cases, actively supporting industries and economic activities, and strengthening review procedures.

The Regulations Governing Credit Extension clearly stipulate that when conducting all corporate credit review, it is advisable to review whether the credit holder has fulfilled its environmental protection, corporate integrity management and social responsibilities, so as to pay attention to the ESG risks of the credit holder.

In order to measure and manage the environmental and social risks caused by large scale project financing, the Bank of Taiwan follows the latest version of the Equator Principles guidelines and formulated these measures as the Equator Principles credit case risk management framework to align with international standards and steer enterprises to implement environmental protection and pay attention to society responsibility.

To leverage financial influence, encourage enterprises to invest resources through the core credit business, and promote a positive cycle of a sustainable society, BOT encourages customers to set performance indicators and goals based on their own industrial characteristics and the pursuit of sustainable development, and include them in credit terms. Regular inspections of achievements are also conducted to provide interest rate discounts.

By formulating sustainable investment policy, leveraging financial influence, and incorporating sustainable development goals into BOT's investment business, our company aims to jointly create ESG value as the principle direction of the investment business of BOT. Sustainable Investment Policy specifies the industries that are prohibited from investment and incorporates ESG factors into the investment decision-making process to effectively control ESG risks and seize opportunities for sustainable development.

Referring to the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies formulated by the Taiwan Stock Exchange Corporation, BOT lists "Specific practices of corporate social responsibility", that is, "implementing corporate governance", "developing a sustainable environment", and "maintaining social welfare", of credit holder as a bonus in the credit rating form. The credit rating results are used as a reference for reviews and interest rate pricing.