Sustainable Operating Environment
Net Zero Planning
Confronted with the trend of net zero emission internationally, our company formulated four strategies from the aspects of internal operation and investment and financing positions, respectively, to reduce our own carbon emission from operation, and we also make review every year to achieve the goal of net zero gradually.
1. Implementation of carbon reduction plans: Continuously reduce carbon emissions in operational processes
2. Greenhouse gas inventory: Understanding the Greenhouse Gas Emissions in the Operational Process
3. External verification: Verify the data obtained through rigorous methods of investigation
4. Set carbon reduction/net-zero goals: Based on rigorous and scientific data, set net zero goals and consistently implement practical carbon reduction measures.
In addition to internal operation, it's estimated by us that the project of the largest carbon emission is the emission by investment and financing customers in Scope 3 (include all other indirect emissions). However, small and medium-sized enterprises (SMEs) have many difficulties in executing inventory and disclosure of relevant data, requiring assistance by financiers very much. To solve this problem, KTB is planning to assist with SME financing customers in making carbon inventory. This action can not only help KTB have a more comprehensive understanding of the total carbon emissions from the investment and financing positions, but also enable the SMEs not to be neglected in the carbon reduction topic nowadays.
Management Policies
Important Regulations for Environmental Management
KTB has formulated the "Sustainable Development Best Practice Principles," which was approved by the Board of Directors, as the principle to develop its sustainability, which has been disclosed on KTB's official website. KTB has also formulated the "Energy Conservation and Environmental Protection Standards Implementation Guidelines" and "Energy Operation Control Manual" as the principles for the promotion of environmental protection and energy conservation.
Environment Management Framework
We take initiative to set the reduction goal and employs third-party verification to review the achievement condition. At the time of implementation, KTB regularly reviews the energy consumption (water, electricity, greenhouse gas, etc.) of the whole bank compared to the same period last year, as well as monthly reviews the water and electricity consumption of each business unit for any irregularities, and reports the findings to the ESG Team meeting, so as to implement sound environmental management. Introduction of Management System
✓In 2018, KTB introduced the ISO 50001 Energy Management System and reduces cost and GHG emission through review, identification, measure, and management of energy consumption, and through the establishment of organizational energy management goals and action plans.
✓KTB introduced ISO 14064-1 Greenhouse Gas Inventory in 2021, and carried out greenhouse gas inventory toward the whole KTB for the first time in 2022 and obtained third-party assurance report, and it's estimated to complete inventory and verification of all affiliates by the end of 2025.
✓In 2022, the Headquarters Building implemented the ISO 14001 Environmental Management System and obtain system certification in 2023. This system aims to analyze and identify risks, opportunities, and internal and external issues in order to minimize environmental impact. It also aims to demonstrate corporate environmental performance in line with stakeholder expectations.
GHG Management
KTB's main GHG emissions are from electricity consumption. Thus, we have set forth special energy-conservation plans for light fixtures, air-conditioners, computer room, and elevators, and we have also set a goal of reduction. In 2023, the total Scope 1 and Scope 2 emissions for the Entire Bank amounted to 2,196 t-CO2e, with a per capita emission of 2.27 t-CO2e. This represents a decrease of 2.16% compared to the base year (2022), successfully achieving the reduction target.
Greenhouse Gas Strategy and Specific Action Plan
✓Please refer to the net zero strategy for greenhouse gases (page61 of 2023 Sustainability Report)
✓Specific Action Plan
In pursuit of the goal of sustainable environmental management, King's Town Bank has implemented the ISO 14001 Environmental Management System and the ISO 50001 Energy Management System to reduce environmental pollution risks and improve energy efficiency. Internally, the Bank has also issued the "Guidelines for Sustainable Development Practices," the "Implementation Guidelines for Energy Conservation and Environmental Protection Behavior," and the "Energy Operation Control Manual" as specific action guidelines to promote environmental protection and energy conservation.
In order to effectively reduce greenhouse gas emissions, our Company has formulated the following energy-saving measures:
(1) Newly installed and replaced lighting fixtures are fully equipped with energy-saving LED light fixtures.
(2) Installed variable speed air conditioners, as a constant temperature control device, and sets the average indoor air temperature at no lower than 26 degrees Celsius.
(3) Adjusted the computer room layout and reorganized the circuit to improve the energy efficiency of the computer room.
(4) Set the billboard light timer depending on the daylight time of the seasons.
(5) Shuts down some elevators during non-peak hours.
(6) Electrical appliances or equipment, such as photocopiers, shredders, computers, lights, elevators, etc., are set to sleep, standby, or auto-sensing modes.
(7) Prioritize purchasing products with the Water Efficiency Label and promote the correct concept of water usage.
(8) Reduce the use of plastic or disposable utensils and cups, and implement proper waste sorting and resource recycling.
(9) Promote digital transactions and paperless operations, and encourage double-sided printing and paper recycling.
(10) Join the green procurement campaign to support low-carbon products, green building materials, and sustainable goods enterprises.
In addition, to promote sustainable energy development, King's Town Bank is responding to Taiwan Power Company's pilot program for small-scale green energy sales. Starting in 2024, the Bank will switch to green energy for its main office. The Company will also continue to evaluate suitable branch locations to expand solar power generation systems and gradually increase the proportion of renewable energy used.
Energy Management
The electricity used in the operating process of KTB is mainly externally purchased electricity (non-renewable energy), and a small part of it is gasoline and liquefied petroleum gas. For the use of energy, KTB has introduced the ISO 50001 Energy management system to effectively improve energy efficiency and reduce electricity consumption. Please refer to the greenhouse gas strategy and specific action plan for further details on the measures.
In order to promote employees' actions and awareness of environmental changes and energy conservation, we regularly organize educational training sessions to remind all employees to participate. Under various actions, the total electricity consumption in 2023 was 3.821 million kWh, with a per capita electricity consumption of 3,947.91 kWh, which represents a decrease of 0.12% compared to the base year (2022). Although we did not achieve the goal of reducing per capita electricity consumption by 1%, we have developed a new energy-saving plan. This plan aims to integrate energy reduction targets and performance assessments across all operational locations. Units that demonstrate better energy-saving performance will be rewarded, incentivizing behavioral change among all employees. Through this approach, we aim to achieve reductions at the source and further decrease electricity consumption across our operational sites.
Energy Saving Plan and Achievements
Scope 2 accounts for 86.2% of KTB's greenhouse gas emissions, indicating that electricity usage is the primary source of emissions in our operational process. To effectively improve energy efficiency and reduce energy costs, we have implemented various energy-saving measures since 2018. These measures include replacing energy efficient lighting fixtures, upgrading air conditioning equipment, replacing chillers, and upgrading elevator equipment. In 2020, we initiated the construction of a smart green data center and successfully completed the conversion of the main system. As a result of the renovation, the data center now achieves an average daily energy savings of 45%. The energy-saving plan and its effectiveness for the 2023 are as below:
Water Resources Management
The water used in KTB's operations comes from the Taiwan Water Corporation and Taipei Water Department, and no groundwater or other water sources are used. The water used in all office buildings and operating sites is only for employees and some customers. There is no significant impact to the water source and is mainly used for drinking, air conditioning systems, cleaning, and other purposes. The wastewater is then discharged through the sewage system. Facing Taiwan's increasingly severe water shortage, we have set reduction targets. We prioritize purchasing products with the water-saving label, conduct monthly reviews of water usage across the Headquarters and its Business Units for any anomalies, report water-saving achievements quarterly in the ESG Team, present water-saving outcomes semiannually to the Sustainable Development and Nomination Committee and the Board of Directors, and periodically educate employees on proper water usage practices.
In 2023, the total water usage was 19,386 cubic meters, increased compared to the previous year, which resulted in a 6.47% rise in per capita water consumption compared to the base year (2022). To reduce water usage in the new year, we are actively implementing proactive controls to manage water consumption at each operational site. We aim to monitor energy consumption at the source and introduce water-saving initiatives. We will integrate water usage at operational sites with performance evaluations, using incentives and penalties to ensure that water-saving awareness and actions are implemented by every team member.
Waste Management
KTB has long had the awareness of waste reduction. Disposable tableware was never used in the employees' canteen in the Headquarters Building. All kinds of disposable utensils were not actively provided when the canteen was renovated in 2010. This policy has effectively reduced the use of 150,000 paper containers.
In addition, for inevitable wastes, KTB separates the waste into general waste (including kitchen wastes) and recycled waste to increase the recycling rate. In order to track and manage the situation of waste management in the Headquarters Building, all the wastes were weighed before disposing, since November 2018. The data for waste treatment in the past four years are shown in the right table.
KTB has set a 5-year reduction target (please refer to the Environmental Goals). To minimize the environmental impact of our operations, we have implemented the following measures, resulting in a successful reduction of per capita waste by 39.45 kilograms. This represents a decrease of 7.83% compared to the previous year, and we have achieved our goal for 2023.
1. Cancel personal trash bin
2. Disposable utensils are not allowed for takeout in the employee cafeteria
