Chairman's Message

In 2023, it was one of the hottest years on record. UN Secretary-General Antonio Guterres urgently addressed the issue of climate change, referring to it as "the era of global boiling," in July. Many scientists pessimistically predicted that achieving the goals set forth in the Paris Agreement, which aimed to "limit the increase in global temperature to 2 ° C, or even 1.5 ° C," by the end of the century, was nearly an impossible task. This heightened the significance of the 28th United Nations Climate Change Conference (COP 28), held in Dubai at the end of November, with record-high attendance. The highly anticipated United Nations Climate Change Conference also released the Global Stocktake report for the first time, which disclosed the performance and gaps in carbon reduction among participating countries. The report revealed that to achieve the goals of the "Paris Agreement," global greenhouse gas emissions need to decrease by approximately 43% by 2030 compared to 2019 and by 60% by 2035. This requires the collective efforts of all departments, including scaling up renewable energy, gradually phasing out fossil fuels, and halting deforestation. The report emphasized that the effective implementation of climate action relies crucially on the roles of "finance" and "technology." With the passage of the Climate Change Response Act by the Legislative Yuan in Taiwan, significant strides have been made in addressing climate change. The law includes provisions such as enshrining the target of achieving net-zero emissions by 2050, the formal implementation of carbon pricing, the addition of a dedicated chapter on climate adaptation to enhance resilience based on scientific principles, and the incorporation of the concept of just transition into the legislation to assist communities affected by climate policies in transitioning stably. These regulations and policies have also pushed Chairman's Message Taiwan's businesses towards a pivotal turning point in sustainable development. Moreover, in 2023, "net-zero emissions" and "green environmental protection" emerged as the most commonly searched keywords among the general public, indicating that Taiwan's transition towards net-zero has expanded from energy and industrial transformation to encompass "lifestyle transformation" and "social transformation," facilitated by citizen communication and participation.

Recognizing the crucial role of the financial sector as a driver of the transition to net-zero emissions, KTB actively collaborates with businesses and other stakeholders to build a sustainable financial ecosystem. We not only consider environmental factors but also incorporate "social" and "governance" aspects into our sustainability efforts. We believe that "sustainable development" has expanded into diverse areas, and like a domino effect, every step we take requires careful consideration. Therefore, our focus on sustainable development revolves around the following aspects:

Expand Climate Action Strategies and Implement Environmental Management Policies

In the face of escalating climate change, we should no longer passively respond but instead proactively adopt strategies and embrace new opportunities. In addition to joining the "Equator Principles" in December 2022, KTB drafted a "Sustainable Finance Policy" in 2023. This policy incorporates environmental and social risk factors into various business operations, guiding clients and stakeholders towards sustainable, low-carbon, and environmentally friendly economic models. Furthermore, in February 2023, we e stablished the "KTB Climate Risk Management Guidelines" to enhance our overall capacity for managing climate change-related risks, focusing on both mitigation and adaptation measures. In terms of operational environmental management, KTB participated for the first time in the "5th National Enterprise Environmental Protection Award" organized by organized by the Environmental Protection Administration, Executive Yuan (Rename as Ministry of Environment) in 2023 and was honored with the Bronze Award. This recognition highlights the collective efforts of every energy-saving and carbon-reducing practice, every attempt at green innovation, and every employee's commitment to environmental protection at King's Town Bank. In addition, the entire Bank has already passed ISO 14064-1 GHG verification, and the Headquarters Building has obtained ISO 14001 environmental management system certification. In 2023, new short, medium, and long-term carbon reduction goals were set for various carbon reduction, energy saving, and water conservation plans, hoping to gradually achieve the vision of "net zero emissions by 2050" through four major strategies.

Leveraging Technology to Promote Inclusive Finance and Enhance the Quality of Fair Treatment of Customers

With the rise of Fintech, digital finance not only saves users and financial institutions the transportation and time costs of interaction but also expands the scope of financial services. This enables vulnerable groups, who were previously overlooked by the traditional financial system, to access financial-friendly services at a lower cost. In addition to driving financial digital transformation, financial technology has become an important force in promoting inclusive finance. In 2023, King's Town Bank collaborated with the "Taiwanese Association of Sign Language Translation Interpreters (TASLI)" to provide real-time sign language interpretation services at bank counters through video calls. They also redesigned the ATM usage process and interface to accommodate the needs of color-blind (weak) customers. Additionally, we introduced a "Youth" and "Elderly" section in the "Friendly Financial Services on the Official Website." This initiative aimed to help customers of different ages and needs quickly find suitable financial products and gain access to financial knowledge and anti-fraud tips. The KTB aims to comprehensively expand the spirit of inclusive finance through the integration of technology. This involves reducing digital disparities, strengthening the accessibility and usability of financial services, and practicing the concept of "digital finance transformation, walking hand in hand with customers" while providing financial services.

Strengthening Operational Governance and Building a Diverse and Inclusive Workplace

The sustainability of a corporation encompasses more than just environmental and social aspects. In fact, it is the foresighted planning and risk management within corporate governance that allow companies to move towards stable operational development. KTB has been steadily advancing, seeking breakthroughs amidst stability. For six consecutive years (2018-2023), 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, for three consecutive years (2021-2023), it has been selected for inclusion in the Bloomberg Gender Equality Index. These achievements demonstrate our dedication to ESG sustainable development and have received high recognition and praise from regulatory authorities and external organizations.

"ESG" or "Sustainability" has become the mainstream topic across various domains. We believe that environmental, social, and corporate governance factors are not separate axes; rather, the term "sustainability" encompasses the role and objectives of enterprises within society. It also represents the contribution of businesses to the prosperity of society and even the world. KTB believes that every small change will accumulate into a significant impact and will continue to take this as its responsibility.