Greenhouse Gas Management

We are deeply aware that the Earth's climate and environment are continuously deteriorating due to the impact of greenhouse gases. As a responsible corporate citizen and part of the global community, Capital Futures recognizes the need to fulfill its corporate social responsibility and comply with international regulations such as the United Nations Framework Convention on Climate Change and the Paris Agreement. Accordingly, we are committed to conducting a comprehensive inventory of the company's greenhouse gas emissions to effectively monitor and manage the current state of emissions and, based on the results, implement voluntary greenhouse gas reduction initiatives.
To fulfill our environmental protection responsibilities and support the national net-zero emissions policy, we proactively carry out greenhouse gas inventories and verifications to identify and address activities with significant impacts. We are formulating energy-saving and carbon reduction strategies and action plans, rigorously supervising their implementation, and continuously promoting measures to reduce greenhouse gas emissions. Additionally, we actively evaluate and adopt renewable energy solutions.

The Company has designated 2023, the year in which third-party assurance for its greenhouse gas (GHG) inventory was obtained, as the baseline year, and has set short-term (2026), medium-term (2029), and long-term (2030) targets as follows:

Capital Futures will review the achievement of targets and make rolling adjustments based on external environmental trends. We aim to mitigate the impact of climate change through these target management measures and maintain stable and normal operations.

• The office environment is designed based on the principles of simplicity and practicality, adopting lightweight interior designs. Building materials with environmental certification labels are prioritized to reduce the generation of harmful air pollutants.
• Office partitions, desks, and filing cabinets are designed with detachable and modular structures, facilitating reuse and recycling while avoiding resource waste.
• Energy-efficient lighting fixtures and anti-glare lamps or grilles are widely used to enhance lighting efficiency and visual comfort in office spaces.
• A zoned lighting control system is implemented, and employees are encouraged to switch off unnecessary lights to cultivate energy-saving habits.
• The efficiency of lighting equipment is continuously optimized to reduce heat generation and electricity consumption.
• Small-scale air-conditioning units are added to replace large central systems during off-peak periods, thereby improving overall energy efficiency.
• Air-conditioning systems are regularly cleaned and maintained by external service providers to enhance cooling performance and extend equipment lifespan.
• Budgets are allocated for the replacement of air-conditioning equipment based on energy consumption levels and service life, with a phased approach to improving energy efficiency.
• High energy-consuming multifunction office machines are replaced to reduce overall electricity usage.
• Awareness campaigns on water-saving measures are strengthened to enhance employees’ consciousness of water conservation.
• Drinking water dispensers are equipped with time control mechanisms and are automatically turned off after office hours and on holidays to save electricity.
• Outsourced vendors conduct regular inspections, maintenance, and servicing of water dispensers to ensure the safety of daily drinking water.
• Waste sorting and recycling areas are set up in office premises, with classified recycling of replaced IT equipment, light tubes, toner cartridges, and other office supplies.
• Employees are encouraged to prioritize the use of public transportation or carpooling when traveling for official business.
• Official vehicles undergo regular inspections and maintenance to ensure operational safety and energy efficiency.
• Official vehicles are being gradually replaced with hybrid or electric vehicles to reduce carbon emissions from transportation.
• Various digital and online services are actively promoted, including online account opening, electronic trading platforms and mobile applications, as well as the digitization of internal corporate information system (CIS) documents and approval processes, to continuously advance the paperless policy.
• Green procurement is promoted, giving priority to products bearing environmental labels or relevant certifications.
• The Company actively evaluates and progressively introduces renewable energy and green electricity usage to enhance the sustainability of energy consumption.

The company actively promotes waste management, focusing on source reduction and resource recycling to minimize the environmental impact of waste. As a financial services provider, the primary type of waste we generate is household waste. We implement waste classification and reduction strategies by categorizing waste into general waste and recyclable materials. General waste is handled by the building's property management company or certified cleaning service providers, while recyclable materials are managed by professional recycling firms to ensure compliance with relevant regulations and environmental standards. Additionally, the company fosters recycling and waste reduction among employees through awareness campaigns and incentive programs, thereby achieving an indirect reduction in greenhouse gas emissions. In procurement, we prioritize products that meet environmental and energy-saving standards, continuously improving the resource efficiency of office and electrical equipment to ensure our operations align with environmental protection and energy-saving objectives.

• Continuously promote paperless operations (e-approvals and electronic official documents).
• Set internal documents to default double-sided printing.
• Present meeting materials in electronic format instead of printed copies.
• Reduce the use of single-use products.

• Install comprehensive waste sorting bins.
• Clearly label waste categories and sorting instructions.
• Regularly promote proper recycling practices through internal communication.

• Give priority to products that are recyclable, reusable, and with minimal packaging.
• Prioritize office supplies with environmental labels or eco-certifications.
• Reduce the procurement of excessively packaged consumables.

• Encourage employees to bring their own cups and utensils.
• Set up shared stationery areas in offices to reduce duplicate purchases.

As a service-oriented financial institution, our company is not a water-intensive industry. However, we are deeply aware of the impact of water scarcity on the global economy and society and embrace our environmental responsibilities. We are committed to promoting water resource management by incorporating water conservation and efficiency improvements into our management guidelines. Measures such as replacing high-water-consumption equipment and selecting water-saving certified products are implemented to continuously optimize internal water-use systems and processes, ensuring efficient resource utilization. In addition, through employee education and awareness campaigns, we aim to enhance understanding of water resource issues and encourage the integration of water-saving practices into work and daily life, fostering a sustainable water-use culture. We believe these efforts not only support our operations but also contribute to the sustainable use of water resources and the advancement of society.

• Replace existing toilets with water-saving models and install sensor-operated faucets.
• Introduce fixed-volume water dispensing functions for drinking water dispensers.
• Conduct regular inspections of pipelines to prevent water leakage.
• Implement water recycling systems or optimize make-up water ratios in air-conditioning cooling water systems.

• Promote the practice of “turning off the tap when not in use.”
• Implement water conservation education programs for employees.

• Give priority to purchasing equipment bearing water-saving certification labels.
• Require outsourced cleaning services to adopt low-water-consumption cleaning methods.

Note 1: Disclosure Scope: All operating sites in Taiwan.
Note 2: The company's greenhouse gas inventory data (Scope 1 and Scope 2) has been verified and obtained a limited assurance report issued by KPMG.
Note 3: The carbon emission factors for electricity under Scope 2 are based on the annual coefficients published by the Bureau of Energy, Ministry of Economic Affairs.
Note 4: The greenhouse gas emission intensity is calculated by using the sum of Scope 1 and Scope 2 values divided by revenue in millions.
Note 5: Other indirect emissions (Scope 3) are disclosed only for carbon emissions related to general waste.

The Company calculates its financed emissions in accordance with the methodology of the Partnership for Carbon Accounting Financials (PCAF) and with reference to the Practical Handbook on Financed Emissions (Scope 3) for the Investment Portfolios of Domestic Futures Commission Merchants issued by the Futures Industry Association. By measuring and disclosing the financed emissions generated by the companies or projects in which it invests, the Company establishes a fundamental basis for understanding the impacts of its investment and financing activities on climate change, and for subsequently identifying climate-related risks and opportunities as well as formulating medium- and long-term carbon reduction targets.
The Company has conducted a carbon inventory for its long-term investment positions (accounting classified as financial assets measured at fair value through other comprehensive income). The financed emissions associated with these long-term investments amount to 93.315 tCO₂e, and the overall data quality score is 1.018 (where a score of 1 represents the highest data quality and a score of 5 represents the lowest).