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Corporate Social Responsibility

Equator Principles Disclosure Statement

In order to respond to the global trend of sustainable finance, CTBC Bank keeps strengthening our corporate social responsibility and sustainable development of our core business. We became a signatory to the Equator Principles* (the EPs) in November 2018. Using the EPs as global best practice for financial sectors, we actively manage the potential environmental and social risks of our corporate loans to prevent negative financial and non-financial impacts to the Bank, as well as to protect the society and environment. Adopting the EPs is the demonstration of our "We are family" brand spirit and "TRUST" sustainability strategy. We aim for making good use of our influence on financing through more rigorous environmental and social risk management. Furthermore, we cooperate with our clients to create a sustainable future and realize our vision of corporate citizenship together.

*Note: The Equator Principles (the EPs) is a voluntary standard for financial institutions developed by the Equator Principles Association based on the sustainable development policy and guidelines of International Finance Corporation (IFC) and World Bank Group. The EPs is a risk management framework, adopted by financial institutions, for determining, assessing and managing environmental and social risk in projects.

According to the requirements of the EPs, signatory should apply risk categorization to the four financial products: project finance advisory services, project finance, project-related corporate loans and bridge loans. The four financial products will be categorized into three categories which are Category A, Category B and Category C based on potential environmental and social risks of the project. The level of risk assessment is dependent on the risk categorization result to reduce the project's negative impacts on environment and society. Covenants and post-loan monitoring are also in place to ensure compliance to the EPs after financial close.