Energy saving / carbon reduction measures and results

Energy management

In response to the national net-zero carbon emission policy, Capital Securities, as part of the securities industry, actively promotes the greenhouse gas inventories and verifications, from which it develops energy-saving and carbon-reducing strategies and action plans, and supervises the progress of implementation in order to identify and respond to the related impact activities.

No.	Item	2022
No.	Item	Target	Results
1	Ratio of increase/decrease in energy utilization intensity over the previous year	Decrease of 10%	Increase of 92.87%
2	Ratio of increase/decrease in greenhouse gas emission intensity over the previous year	Decrease of 10%	Increase of 95.4%
3	Continuously improve resource utilization efficiency	The Company injects resources and manpower to improve the efficiency of resource utilization as well as for energy saving activities	Continuous implementation and promotion
4	Violations of environmental laws or regulations	No violation	No violation

Note 1：
Energy utilization intensity: Gigajoule (GJ)/million revenue.
Note 2：
Greenhouse gas emission intensity: per ton of carbon dioxide equivalent (tCO2e) / million revenue
Note 3：
Due to a 51.58% change in operating revenue in 2022 compared to 2021, the energy utilization intensity and greenhouse gas emission intensity increased despite a decrease in both energy utilization and greenhouse gas emission.

Regarding environmental protection issues, the Environmental Sustainability Section under the Sustainable Development Committee collects information from competent authorities, customers, the industry, and international trends to discuss and plan for impacts on the company's business activities, and leads each unit to promote energy and resource utilization efficiencies, reduce energy use, and minimize greenhouse gas emissions through action plans and risk management measures.

This year's environmental protection program has taken "greenhouse gas emissions" as the materiality theme, and has emphasized the current year's implementation situation, the impacts on business activities and countermeasures, as well as elaborated on the future plans to demonstrate the efforts to achieve environmentally sustainable development.

Capital Securities replaced old lighting fixtures with a total of 106 sets of LED lighting fixtures that carry the energy-efficient label, costing NT$ 92,644. This replacement is capable of saving 14,195 kilowatt-hours per year. Additionally, old and high-energy-consuming air conditioning units were replaced with two split-type air conditioners carrying the energy-efficient label, totaling NT$ 57,000. This replacement can result in an annual energy saving of 1,752 kilowatt-hours. In total, the annual energy savings amount to 15,947 kilowatt-hours.

Greenhouse Gas Emissions

Greenhouse Gas Emission Policy

Capital Securities is aware of the impact of climate change and environmental ecology by greenhouse gases, in order to fulfill the corporate responsibility for environmental protection, we are committed to the greenhouse gas inventory, to truly control the status of greenhouse gas emissions, and to adjust the greenhouse gas emission reduction action plans and plans in a rolling manner through the P-D-C-A cycle of improvement management methodology, and to put forward the following commitments to environmental sustainability:

Continuously promote the implementation measures to reduce greenhouse gas emissions.
Actively evaluate and utilize renewable energy.
Comply with national environmental protection laws and regulations.
Follow the national net-zero carbon emission target.

Greenhouse Gas Management Organization and Structure

Capital Securities has established an executive team for greenhouse gas inventory, which is responsible for the improvement of energy utilization efficiency, energy conservation measures, renewable energy utilization assessment, greenhouse gas inventory, and greenhouse gas emission control and reduction measures. We regularly report to the Environmental Sustainability Section and the Sustainable Development Committee to discuss action plans and programs related to the aforementioned issues, review implementation progress, and examine issues of company impact and trends, performance results, and target achievement status. Lastly, the Sustainable Development Committee shall summarize the contents of the meeting and submit them to the Board of Directors for effective supervision of the progress and resource allocation.

Energy Usage and Greenhouse Gas Emissions Inventory

In response to the Financial Supervisory Commission's promotion of the "Sustainable Development Roadmap", we continue to promote the ISO14064-1 greenhouse gas inventory activities and expect to first appoint a third-party verification organization to pre-assess the information in 2023, and then commission an independent third-party organization to conduct a validation in 2024, in order to optimize the information management and the overall action plan to reduce greenhouse gas emissions.

The energy usage of Capital Securities is mainly based on outsourced electricity used in the process of rendering services and operations in each business location; other than that, it is the small amount of gasoline and diesel consumed by official vehicles and emergency generators.

Boundary: All business locations in Taiwan.
Base year: 2023.
The types and quantities of energy used are in the order of purchased electricity, natural gas, diesel fuel, gasoline, and gas, and the respective greenhouse gas emissions are analyzed in the table below.

Capital Securities Table of Energy Use Analysis Over the Years
Year		2020	2021	2022 Original Data	2022 New Data	Unit
Energy type	Outsourced electricity	8,183,673	7,876,856	7,832,447	9,890,058	kWh
	Diesel fuel	1,060	1,012	1,427	4,982	Liter
	Gasoline	13,868	12,194	11,989	12,527	Liter
Energy consumption		29,937.38	28,777.03	28,625.13	36,171.59	Gigajoule (GJ)
Energy intensity		4.06	2.63	5.07	6.41	Gigajoules (GJ) / per NT$ 1 million in revenue
Ratio of increase/ decrease from the previous year		Increase of 17.72%	Decrease of 35.26%	Increase of 92.87%	Increase of 143.72%

Note 1：
The original data for 2022 follows the scope of the previous year's inventory.
Note 2：
The new data for 2022 is based on ISO14064-1 and the requirements of the Greenhouse Gas Protocol, and includes the diesel fuel consumption of the Dunnan Office (Registrar Agency
Note 3：
The intensity is calculated with operating income (per 1 million in revenue / NT$) as the denominator (rounded up to the fifth decimal place). Due to the 51.58% change in operating income in 2022 compared to 2021, the energy utilization intensity increased even though the energy usage was low.
Note 4：
Energy consumption was converted according to the "Energy Products Unit Calorific Value Table" in the 2020 Energy Statistics Handbook of the Energy Administration, Ministry of Economic Affairs (MOEA), electricity: 860 kcal/kWh, diesel: 8,400 kcal/liter, gasoline: 7,800 kcal/liter.

Unit: tCO2e

Capital Securities Greenhouse Gas Emission Analysis Table
Item	2020	2021	2022 Original Data	2022 New Data
Direct greenhouse gas emissions (Scope 1)	34.15	30.36	27.13	447.24
Indirect greenhouse gas emissions (Scope 2)	4,165.49	3,954.18	3,986.72	5,034.04
Total	4,199.64	3,984.54	3,986.72	5,034.04
Greenhouse gas emission intensity(tCO2e / per NT$ 1 million in revenue)	0.57	0.364	0.711	0.971
Ratio of increase/ decrease from the previous year	Increase of 13.26%	Decrease of 36.1%	Increase of 95.4%	Increase of 166.84%

Note 1：
The original data for 2022 follows the scope of the previous years' inventory.
Note 2：
The new data for 2022 is the total of all GHG emission sources, and the inventory is conducted in accordance with the requirements of ISO14064-1 and the Greenhouse Gas Protocol. The increase in GHG Scope 1 emissions is due to the addition of emergency generator diesel fuel use and fugitive emission sources (refrigerant, septic tanks, and fire extinguishers) to the inventory. The increase in GHG Scope 2 is due to the inclusion of the Dunnan Office (Registrar Agency Department) and the Headquarters and branches' share of public electricity consumption in the scope of electricity consumption inventory.
Note 3：
The sources of data include electricity bills, building electricity allocation tables, and gasoline vouchers.
Note 4：
The Scope 1 emission factor is based on the “Environmental Protection Administration, Executive Yuan Greenhouse Gas Emission Factor Management Table (Version 6.0.4)”.
Note 5：
The electricity power is based on the electricity emission factor of 0.509 kgCO2e/kWh announced by the Energy Administration, Ministry of Economic Affairs in 2021.
Note 6：
Emission intensity is calculated with operating income (per million in revenue / NT$) as the denominator (rounded up to the 3rd decimal place). Due to the 51.58% change in operating revenue in 2022 compared to 2021, the greenhouse gas emission intensity has increased despite the decrease in greenhouse gas emissions.

Low Carbon Strategies and Action Plans

Capital Securities continues its greenhouse gas reduction action plans in 2022, focusing on improving energy efficiency and reducing energy use as the main action plans in order to achieve the greenhouse gas reduction targets.

Greenhouse Gas Reduction Action Plans
Strategy	Action Plan
Personnel respond to low carbon action	Encourage colleagues to reduce the use of elevators in reasonable circumstances. Personnel pay attention to keeping doors and windows closed in areas where the air-conditioning is in use. Advocate turning off the lighting equipment when it is not in use. Advocate turning off manually the power of electrical equipment in all units during off-duty hours, weekly holidays and consecutive holidays to reduce standby power consumption. Such as rice steamers, water dispensers, computers, printers and office machines, etc. Advocate from occasional energy-saving benefits and environmental protection concepts to colleagues through activities, e-mails or other means.
Energy saving activities at business locations	Control the number of elevators in operation according to the commute time. Low carbon management of air-conditioning equipment: Control the main unit of air-cooled water chiller to dispense water and adjust the temperature of ice water upward by 1 degree Celsius to save electricity. Set the indoor air-conditioning temperature to 26 degrees Celsius before work at 07:30 and after work at 17:00 daily. Add small air conditioners to replace large air conditioners during off-peak hours. Regularly clean and maintain air conditioners to improve operating efficiency. Set the advertising signboard on the outside wall of the branch office to turn off after 12:00 a.m. to avoid wasting electricity. Set the power-saving mode for office machines to keep them at sleep mode during the time when they are not in use. Install time controllers in water dispensers to keep them off on holidays or during the late-night hours. Adopt responsibility zone management to turn off lighting and air conditioners that are not in use at any time.
Replacement for high energy consumption or old equipment	Prepare budges to replace air-conditioning equipment according to energy consumption or service life conditions. Replace the old lamps with LED lamps to reduce heat and electricity usage. Replace the fire exit indicator, escape direction indicator and fire protection indicator by LED lighting equipment. Replace functional machines that consume a lot of electricity with more energy efficient ones.
Improve official vehicle use efficiency	The use of official vehicles is based on the principle of shared rides. Encourage employees to use the public transportation system. Regular inspection and maintenance of official vehicles.
Green Procurement	Through our procurement system, we promote the procurement of green products by requiring suppliers to provide products that meet the standards of environmental protection, energy conservation, and green building materials, or green products that comply with the requirements of recycled materials and low pollution that have the same performance and less impact on the environment. In addition, we pay attention to the improvement of resource utilization efficiency of various office and electrical equipment, and actively supervise and implement them.
Continuous improvement mechanism	Regularly review the contracted capacity usage every year to ensure the proper implementation and effectiveness of low carbon strategies and action plans.

Other Environmental Protection Measures

Water Resources Management

Capital Securities Tap Water Consumption Analysis Table
Year	2020	2021	2022 Original Data	2022 New Data
Water consumption (cubic meter)	29,391	25,160	25,723	52 ,374
Greenhouse gas emissions (tCO2e)	4.41	3.82	4.14	8.43
Carbon emissions of increase/decrease from the previous year	Increase of 0.12	Decrease of 0.59	Increase of 0.32	Increase of 4.61

Note 1：
The original data for 2022 is based on the previous year's inventory.
Note 2：
The new data for 2022 is due to the addition of the Dunnan Office (Registrar Agency Department) and the inclusion of the Headquarters and branch offices’ share of public water consumption in the scope of the water consumption inventory.
Note 3：
Data sources are payment slips and building fee allocation tables.
Note 4：
The following data are from Taiwan Water Corporation

The carbon emission in 2022 adopted the equivalent to the CO2 emitted per cubic meter of water in 2021 =0.161 kg CO2/cubic meter
The carbon emission in 2021 adopted the equivalent to the CO2 emitted per cubic meter of water in 2020 = 0.152 kg CO2/cubic meter
The carbon emission in 2020 adopted the equivalent to the CO2 emitted per cubic meter of water in 2019 = 0.150 kg CO2/ cubic meter

Water consumption information
1. 100% of the Company's water source is tap water, and the water used in Taiwan, the main operating area, comes from Taiwan Water Corporation. The Company does not use groundwater or water supply from other sources.
2. It is mainly used for drinking water, air-conditioning system, cleaning and other purposes. The main users are only for employees and some customers. In addition, all the sewage after the use thereof is legally discharged into the sewage system or the discharge water system required by the region which meets the water discharge standard for domestic sewage.
3. In summary, there is no significant impact on water sources.
Water saving measures
1. Install a water-saving device to adjust the water output.
2. Replace outdated water equipment and use water-saving equipment marked with water-saving labels instead.
3. Advocate the correct concept of water use, post water saving slogans near the water equipment, and develop the habit of water saving.

Waste Management

Capital Securities is in the financial service industry, and mainly provides financial goods and services. The waste produced is mainly domestic waste.
The Company promotes waste reduction, resource recycling and reuse activities within the office, and properly distinguishes general waste from resource recycling. Colleagues sort out the waste by themselves. Subsequently, general waste will be transported to the incineration plant by the building property management company or qualified waste cleaning company for processing; as for recyclable materials, the qualified resource recycling supplier is commissioned to handle the process properly.
In 2022, the Company promotes the greenhouse gas inventory project. In order to ensure the completeness of the waste data in Scope 3, the Company starts to take weekly measurements of the waste from the Headquarters and branch offices, categorize the waste and analyze the data of each category. Currently, the total quantity of waste from Capital Securities' Headquarters and branch offices in 2022 is 67.4838 metric tons. In view of the waste statistics, the Company naturally promotes and actively implements waste reduction and recycling activities for a larger quantity of waste in order to reduce waste output, which in turn effectively reduces greenhouse gas emissions.

Green Finance and Digital Transition Campaigns

We provide customers with electronic statements for all products, and continue to promote electronic statements through various promotional activities to effectively reduce printing paper and ink consumables, and minimize greenhouse gas emissions and environmental pollution.
We provide customers with online account opening methods such as opening a securities account, opening an additional electronic account, opening an additional trust account, and opening an additional three-in-one account (credit, securities lending, loan), etc. by using the webpage and application. Through the online account opening operation instruction video and Capital Teaching Video Network, we promote the teaching for online account opening and electronic trading, which can reduce the time spent by customers at the counter as well as greenhouse gas emissions and environmental pollution caused by traffic.
Meanwhile, in order to implement digital transactions, we have continuously launched service-based/trading-based APPs, such as the promotion of "Happy Trade one-account-for-all-products platform" and "LINE@ social platform", which not only achieve the benefits of reducing the use of paper and caring for the environment, but also help to minimize the greenhouse gas emissions. The results are as follows: by mid-2022, the APP has been downloaded for nearly one million times and the growth rate in the past two years has reached 90%.
The Company uses the bulletin board on the Internet to announce various information internally so as to reduce the number of paper copies of materials and replaces paper signatures with electronic signatures.
The Company advocates the improvement of resource use efficiency, such as double-sided printing or photocopying of materials, recycling wastepaper for reuse, repeated use of envelopes and kraft paper bags as internal transfer bags without violating information security or personal data protection, encouraging electronic files replacing hard copies, e-mails replacing fax paper, and other measures.