The overview of 2024 highlights frequent extreme weather events and a gradual increase in global pressure for carbon reduction and energy transformation. All governments have strengthened climate policies and regulations to encourage corporations to accelerate sustainable action. Our government released the “Green and Transition Finance Action Plan” in October 2024, expecting to guide financial institutions in emphasizing the importance of sustainable development. The SCSB vigorously responds to the government policies and strengthens sustainable governance, setting up the “Audit and Sustainable Committee” under the Board of Directors. The Committee is responsible for supervising and reviewing sustainable development of the SCSB, ensuring integration of sustainability concepts into operational decision making, and taking action to promote sustainable transformation of corporation and society.
In the meantime, in light of the artificial intelligence (AI) trends and rapid development of digital banking, technology has become an important tool for enhancing corporate operation. However, information security risks increase accordingly. The balance between digital innovation and information security protection becomes a new challenge for corporate operations. We will ensure stable implementation of digital innovation through reinforced information security protection and risk management.
Looking ahead to 2025, the strategy of the SCSB is set to focus on “inheritance and sustainability, intelligence innovation,” aiming to deepen application of fintech and artificial intelligence, and elevate operating efficiency and customer experience. Additionally, the SCSB will expedite digital transformation, optimize the product and service model, and actively promote green financing and inclusive financing. We ensure that innovation can bring long-term value for sustainable business and help corporations and society enter a more resilient future.
Intelligence Innovation, Mitigate Digital Risk and Exert Influence
Based on the main strategy of 2024 “smart sustainability and innovative diversity,” the SCSB utilizes fintech for expediting the digital transformation of business. In the meantime, the SCSB focuses on diverse business development and expansion of profit drivers to increase non-interest income and reinforce capital efficiency. The SCSB focuses on the optimization of the service model and the launch of innovative products through a deepened application of smart technology to bring greater value to customers and shareholders. Information security protection is also our focus while pursuing innovation. The Global Risk Report 2024 lists misinformation and disinformation as one of the important global risks. Information security threats are gradually becoming more severe. To this end, the SCSB sets up the SIEM platform and signs an outsourcing monitoring contract with the external SOC to achieve a 24-hour monitoring mechanism. Meanwhile, we engage in the financial security operations center (F-SOC) service for financial information operations to acquire the information on the latest information security threats. We share information with other players in the financial services sector and ensure stable, safe implementation of digital transformation and business growth.
Succession and Sustainability, the Environmental Initiative Connects to the World
Besides driving sustainability with digital and innovation concepts, the SCSB is committed to “succession and sustainability,” strives for environmental action, and builds a long-term value of sustainable operation. For this reason, we signed to join the Science Based Targets initiative (SBTi) in March 2023, which passed approval in January 2025. We comply with the Partnership for Carbon Accounting and Financials (PCAF) to conduct greenhouse gas inventories and set reduction targets for the SCSB’s investment and financing activities and formulate net zero strategies. In the future, we gradually increase the percentage of the corporation in the investment portfolio that has submitted the SBT. We engage with the uncommitted SBT company to promote carbon reduction commitments with the uncommitted SBT company. At the same time, the KPI of all departments is connected with the carbon reduction plan. All departments regularly track and report outcomes. The SCSB refers to guidelines such as Climate-Related Financial Disclosures (TCFD) and Taskforce on Nature-related Financial Disclosures (TNFD) to set up the SCSB’s Guidelines Governing Nature and Climate Risk Management to show that the SCSB emphasizes the environmental sustainability topics.
Profitability of the SCSB in 2024 shows steady growth and the SCSB performs prominently in the sustainability domain. Looking back at 2024, the SCSB was still included in the Dow Jones Sustainability World Index (DJSI World) and DJSI Emerging Markets, ranked in the top 10% of S&P Global CSA and earned AA in MSCI ESG Ratings.The sustainability report from the SCSB also earned the TCSA Platinum Award for the third consecutive year. Further, the SCSB has been awarded the Business Weekly Carbon Competitiveness Top 100, showing exceptional performance in sustainable development. Looking ahead to 2025, the SCSB's business development strategy will emphasize ethical and legal compliance management, comprehensive service networks, and the development of diverse core areas. In the meantime, the SCSB utilizes fintech to enhance core information security and capital management, actively promotes sustainable finance, and sets a robust foundation for long-term development.
Promote Sustainable Finance: Develop Green Financing and Fulfill the Environmental Commitment
The SCSB continues to develop green financing, supports the trending industry with a great future outlook and the loan associated with green energy, and actively adapts to government policies. The SCSB prioritizes the implementation of the cases with official support and government subsidy, helping SMEs realize low carbonization and smart transformation. Meanwhile, the SCSB strives to become the leading bank of syndicated loans for our own customers, deepens the cooperation platform among Shanghai, Hong Kong, and Taiwan, and expands business to international markets such as those in Southeast Asia and new southbound countries. Further, the SCSB reinforces online service application for external parties and promotes electronic document delivery to reduce paper use for internal parties, realizes the paperless concept, and is committed to the eco-friendly idea.
Implement Sustainability Management: Set Up IFRS Task Force And Sustainability Development Team, and Reinforce Training and Customer Inheritance
For smooth connection to IFRS Sustainability Disclosure Standards, the SCSB sets up the IFRS task force, assigns the contact person for subsidiary, and gradually expands sustainable information management to the entire group. In the group management aspect, the sustainable development team in February 2024 was established as a dedicated unit for implementation of the ESG project. In the areas of customer and employee management, the SCSB is dedicated to enhancing its balance sheet risk management capabilities, proactively responding to risks such as the Federal Reserve’s interest rate cuts and the depreciation of the U.S. dollar, improving capital utilization efficiency, strengthening capital management and deployment, and creating greater financial efficiency. At the same time, employee education, training, and experience inheritance are strengthened to set the foundation for sustainable operation at the SCSB. Furthermore, the SCSB adapts to the policy regarding that competent authorities build the Asia Asset Management center. For the SCSB, customer inheritance is the key to business operation. The SCSB provides tax and asset allocation counseling to high asset customers, offers services in the family office alike, and assists customers in asset management.
Fulfill Environmental Protection: Protect Wild Bird Ecology, Plant Trees for Reforestation, and Host Sustainability Forum
In the environmental protection and social influence aspect, in 2024 the SCSB has continued to work with Tainan City Birdwatching Association, aiming for conservation of wild bird ecology, and maintaining biodiversity. At the same time, the SCSB emphasizes protection of native tree species in Taiwan, echoes the plan “plant a tree for Earth”, and plants 1,045 native tree species in Taiwan. The SCSB aims at the reduction of carbon emissions and the acceleration of the realization of the net zero goal. In addition to greening, the sustainable development of biodiversity is facilitated. Since 2022, the sustainable topic forum has been held every year. Stakeholders such as corporate customers and suppliers are invited to the forum. The SCSB collaborates with the Taiwan Impact Investing Association, leads the investment of market capital in sustainability topics, and it organized more than ten topic forums with the Association. In the future, the SCSB will continue to uphold the core concept “developing diverse cores, driving digital transformation, bolstering international finance, cultivating human capital.” While pursuing for operational performance, the SCSB continues to contribute to sustainability.
