Message From Chairman
Chairman's Message
The global situation in 2024 is filled with variables, and businesses are impacted by multiple factors such as economic transition, technological innovation, and environmental sustainability. As global inflationary pressures gradually ease, central banks in various countries are adjusting their monetary policies. However, geopolitical risks continue to impact supply chains, prompting companies to reassess their production and market strategies. Furthermore, with the rise of green finance and sustainable investment, companies must not only focus on financial performance but also meet ESG standards. The 2024 World Economic Forum (WEF) Annual Meeting particularly emphasizes the importance of "restoring trust" and "net-zero transition" for global enterprises. In the technology sector, advancements in AI, blockchain, and quantum computing continue to accelerate smart manufacturing and digital transformation. Nevertheless, they also bring challenges related to privacy protection and ethics. In 2024, the European Union passed the Artificial Intelligence Act, becoming the world’s first comprehensive regulation targeting AI risk management, which is bound to impact companies’ AI application strategies. At the same time, the frequent occurrence of extreme weather events due to climate change has prompted governments of various countries to accelerate the promotion of carbon markets and net-zero commitments. The 2024 COP29 (Conference of Parties) will further discuss carbon trading mechanisms and green supply chain standards, driving companies to strengthen carbon emission management and develop circular economy strategies. From a social perspective, the global labor market is undergoing significant changes, with companies facing challenges related to talent shortages and the need for skill upgrades. Additionally, attention should be paid to issues related to equitable development and diversity, equity, and inclusion (DEI). The United Nations Sustainable Development Goals (SDGs) emphasize that 2024 is a critical year for "social equity and inclusive growth." Companies must take a more active role in promoting labor rights protection and social responsibility plans. Concurrently, growing awareness of sustainable consumption is driving brands to shift toward low-carbon products and circular economy models to meet consumer demand for environmentally friendly products. In this context, companies not only need to adapt to changing circumstances but must also actively embrace innovative thinking and sustainable development efforts to ensure long-term competitiveness and the diverse sustainable development values of environmental, social, and governance (ESG).
The financial industry is a key driving force for promoting sustainable development, accelerating the low-carbon transition through capital allocation, risk management, and policy guidance. As green finance and ESG investments become mainstream, financial institutions bear greater responsibility in lending, investing, and asset management. Therefore, building a sustainable financial ecosystem requires participation from entire population, collaborative efforts from businesses, and policy monitoring. It must steadily advance within the core framework of sustainable development. To this end, King’s Town Bank focuses on the following key aspects of sustainable development:
Expand Climate Action Strategies and Promote Net Zero Carbon Reduction Goals:
In the face of the challenges posed by extreme weather, companies are no longer merely drivers of economic development; they are also key guardians of a sustainable future. From "net zero emissions" to "green innovation," we are actively taking action to integrate sustainable finance and climate action into core operations, demonstrating a long-term commitment to environmental responsibility. In recent years, we have adopted the Equator Principles and completed the ISO 14064-1 greenhouse gas inventory verification for the whole group by 2024. At the end of the same year, we further initiated the adoption of International Financial Reporting Standards (IFRSs), actively aligning with the domestic sustainable disclosure roadmap to enhance corporate transparency and make sustainable actions more concrete and visible. Upholding the spirit of "Action Creates Change," we have set a net-zero target for 2050, with two main carbon reduction strategies: "self-managed carbon reduction" and the "use of renewable energy." In 2024, we purchased renewable energy certificates from power suppliers for the first time, accelerating our carbon reduction processes and marking a milestone toward a clean energy transition. Every step taken by King’s Town Bank not only reflects a commitment to environmental protection but also contributes to reshaping the resilience of corporate operations. Through resolute actions and innovative thinking, King’s Town Bank is advancing towards the vision of "Net Zero Emissions by 2050."
Leveraging Technology to Promote Inclusive Finance and Optimize the Quality of Fair Treatment of Customers.
In the era of finance driven by AI and digital technology, we not only pursue innovation but also focus on creating a friendly financial service environment. We ensure that every customer can enjoy fair and convenient financial services, becoming a driving force for inclusive finance and fulfilling our commitment to fair treatment of customers. We are actively working to reduce the digital divide caused by the rapid development of digital finance, striving to bridge the technological gap among different groups, particularly in the context of a super aged society. We continue to optimize the user experience of the "Friendly Financial Zone" to provide users with a convenient interface, enabling the elderly population to easily access and utilize digital financial tools. In order to extend financial services to a broader range of groups, in 2024, all 66 branches of King’s Town Bank across Taiwan became "Dementia-Friendly Organizations," providing financial services for individuals with dementia. Meanwhile, we enhance the accessibility services by fully replacing touch-screen ticketing machines, adding user-friendly ticketing options, introducing large-screen ATMs, and implementing voice access features and various other services. In collaboration with Tainan City's "Voiced,” we provided on-site sign language interpretation and real-time transcription services to facilitate transactions for individuals with hearing and speech impairments. Furthermore, in partnership with “the Taiwan Foundation for the Blind,” we produced “braille stickers” and donated “signature boards and reading assistance tools” to improve reading and writing convenience for visually impaired individuals. We hope to ensure that every customer can enjoy comprehensive financial services through practical actions and meticulous care, thereby achieving true financial inclusion.
Strengthening Operational Governance and Work Together to Build a Diverse and Inclusive Workplace:
Sustainable operation is a vital cornerstone of corporate development. A sound corporate governance structure ensures that while pursuing economic benefits, a company also takes into full account environmental, social, governance and other factors, guiding the companies toward stable operational development. KTB has been seeking breakthroughs amidst stability. For seven consecutive years (2018-2024), it has been awarded the top 5% in the Taiwan Stock Exchange's "Corporate Governance Evaluation," and ranked within the top 10% in the financial insurance industry category. Additionally, KTB was honored with SGS 2024 ESG Awards – Sustainability & Society Award and selected for the《S&P Global》2025 Sustainability Yearbook. These achievements demonstrate our long term commitment to promoting ESG sustainable development and have received high recognition and praise from regulatory authorities and external organizations.
"ESG" and "sustainability" have evidently become key indicators for assessing corporate operations. In the context of increasingly severe extreme weather conditions, sustainable operation has become a global consensus, and companies can no longer stay uninvolved. We believe that the environment, society, and corporate governance are intricately intertwined and mutually dependent as an integrated whole. Sustainable development is not only an extension of a company's operating model, but also relates to its role and responsibility within society. KTB adheres to the principle of "take from society, give back to society" actively promoting sustainable operations alongside corporate governance to make a long term and far-reaching contributions to the environment and society as a whole.
