Global sustainable development is currently at a critical turning point. Geopolitical dynamics, supply chain restructuring, and fluctuations in trade policies have introduced numerous uncertainties into the global landscape, placing financial institutions under unprecedentedly complex challenges. Against the backdrop of the World Economic Forum (WEF) in 2026 emphasizing “Rebuilding Cooperation,” we have come to a profound realization that financial institutions are not only providers of capital, but also pillars of social stability and the most trusted partners for clients in their transformation journeys.
In the face of climate impacts and the restructuring of the international order, our Bank has, since 2024, aligned with the IFRS Sustainability Disclosure Standards S1 and S2, and further aligned with international frameworks such as the Science Based Targets initiative (SBTi), TCFD, and TNFD. We have systematically incorporated climate and nature-related risks into our decision-making framework, thereby strengthening governance resilience.
Rooted In Prudence, deepening the value of legacy
The trust accumulated by the SCSB over more than a century is our most valuable asset. Amid a changing environment, we consistently uphold a sustainability mindset, steadfastly maintaining asset quality and capital adequacy. Leveraging the advantages of our presence across Taiwan, Hong Kong, and Mainland China, we assist small and medium-sized enterprises in strengthening their cross-border deployment. For us, “legacy” of assets is not merely the transfer of wealth, but the intergenerational continuation of management wisdom, trusted relationships, and social responsibility. We aspire not only to safeguard our clients’ family businesses, but also to protect the environment we all share.
Advancing Sustainable Finance and Expanding Transformation Impact
We firmly believe that “support rather than exclusion” is the key to driving collective progress across industries. The SCSB actively implements sustainable finance by incorporating environmental and social factors (ESG) into investment and financing decisions, and by expanding commitments to green buildings, ESG-related industry lending, and sustainable development bonds. Through “sustainability-linked loans” and differentiated interest rate mechanisms, we provide tangible incentives to enterprises actively pursuing transformation, guiding capital flows toward low-carbon pathways and extending our impact from the banking sector to the broader value chain, thereby ensuring that sustainable value is truly put into practice.
Empowering Through Intelligent Innovation To Strengthen Long-term Competitiveness and Outlook
In response to the evolution of financial technology, the SCSB continues to enhance decision-making quality and operational efficiency through digital enablement, providing more precise and real-time financial solutions. Looking ahead to 2026, we will, under the central theme of “Inheritance and Sustainability, Intelligence Innovation,” adopt a dual-track strategy built upon a foundation of prudence and stability, accompanying our clients through every mile of their transformation journey.
We will internalize the principles of sustainability into our corporate culture, creating enduring value for clients, society, and future generations in an era of challenges, and steadily advancing toward our corporate vision of becoming “the best Chinese bank in the Asia-Pacific region.”
In 2025, on the basis of sound operations, the SCSB’s sustainability performance continued to receive high international recognition. We were not only once again selected as a constituent of both the World and Emerging Markets indices of the Dow Jones Best-in-Class Indices (DJBIC), but also maintained an AA rating in the MSCI ESG Ratings. In addition, our Sustainability Report was awarded the TCSA Platinum Award for consecutive years, and we ranked among the top 5% of listed companies in the Corporate Governance Evaluation, demonstrating our ongoing progress and achievements in governance transparency, sustainability management, and information quality.
Creating Sustainable Value Through Scientific Management, Green Finance, and Environmental Action
The SCSB advances net-zero transformation in a prudent and pragmatic manner by integrating climate and nature-related risk management into decision-making processes. In alignment with the TCFD framework, we strengthen the identification of climate-related risks and progressively incorporate nature-related risks into our overall risk management system. At the same time, based on the Science Based Targets (SBT), we expand green financing, sustainability-linked loans, and credit facilities for equipment upgrade projects. Through engagement mechanisms, we assist clients in planning decarbonization pathways and encourage the disclosure of their carbon reduction actions, guiding capital toward low-carbon transition needs and leveraging the influence of finance.
In terms of environmental action, the SCSB continues to promote energy-saving and carbon reduction measures, supports the “Tainan Qigu Salt Pan Bird Conservation Promotion Project,” and advances tree planting, ecological conservation, and deeper employee engagement. In doing so, we extend environmental benefits from internal operations to social initiatives, fulfilling our long-term commitment to environmental sustainability.
Deepening Inclusive Finance, Supporting Small and Medium-sized Enterprises, and Expanding Public Welfare Engagement
As the most steadfast partner of small and medium-sized enterprises, the SCSB provides diversified and flexible financial solutions to assist businesses in undertaking equipment upgrades and operational optimization. Through concrete actions, we support enterprises in their sustainable transformation and promote industries’ progress toward net zero.
Inclusive finance is a core mission of the SCSB. Through user-friendly product design and enhanced services across local branches, we are committed to making financial services more accessible to different generations, vulnerable groups, and residents in rural and underserved areas. In 2025, the SCSB launched the “GoRich Intelligent Wealth Management” system, offering more comprehensive cross-generational service solutions to meet the needs of diverse customer segments, while lowering the threshold for wealth management within the system, enabling younger populations and rural residents to access financial services at lower cost. In addition, the SCSB continues to promote social welfare initiatives and volunteer programs. From financial education and environmental sustainability to community care, we deepen connections with local communities through employee participation, thereby expanding our positive social impact.
Enhancing Information Transparency, Strengthening Technology Governance, and Advancing Talent Development
Continuously strengthening the sustainability governance framework, refining sustainability information management processes and cross-departmental collaboration, and enhancing the credibility and consistency of ESG disclosures, so that stakeholders can more clearly understand the SCSB’s sustainability actions and management effectiveness.
In terms of technology governance, the “Digital Technology Department” centrally coordinates resources, and through organizational specialization, strengthens cybersecurity resilience and improves resource efficiency, ensuring that AI technology development, strategies, and business needs are closely aligned. At the same time, we promote the “Digital AI Seed Talent Development Program” and internal employee training, gradually embedding sustainability and digital AI into the organization’s competitive capabilities.
Upholding the service philosophy of “Always Placing Customers’ Needs First,” characterized by “Warmth, Ease, and Respect,” we continue to deepen sustainable finance and intelligent services. We support our clients with more inclusive, resilient, and sustainability-driven financial solutions, continuously expanding our positive contributions to society and the environment, and striving to become the most trusted long-term partner for the public.
