Chailease is involved in corporate finance, investment business and retail banking, and has established a comprehensive monitoring mechanism for credit recipients, organized a risk management committee to formulate risk polices, and set up a review committee to do credit checks and verifications before lending. Evaluation mechanisms have been enhanced, and credit quality control implemented. To fulfill corporate social responsibilities while considering the interests of customers and shareholders as well as financial sustainability, Chailease added ESG factors to its credit evaluation process requiring credit companies to assume responsibility for employees, society and the environment. They must also abide by corporate ethics, respect employee rights and care, and prioritize environmental protection. The company is committed to reducing ESG risk to enhance the value of its long-term corporate investment/loans.

Chailease is committed to promoting energy-saving green energy products, and the green energy value chain, and is gradually expanding the development of related business while passing on green concepts. Since 2010, the company has been promoting services and finance for energy conservation, and in 2011, it established a dedicated energy-saving financing unit. It has also developed green energy financing and energy management consulting services. In 2010, the company launched its "ESCO Energy Conservation Service Financing" providing a dedicated unit to strategically cooperate with the energy technology service industry (ESCO) to assist SMEs in energy conservation and carbon reduction projects. Based on an energy conservation business owner or ESCO company's proposed conservation performance guarantee project plan, flexible leases or installment plans are drafted to satisfy the financial needs of various energy conservation projects. With installment leasing as the foundation, these projects combine green energy technology expertise such as energy conservation services or energy development to provide customers who have different types of energy-intensive venues in factories, offices, hospitals, department stores or schools with an energy conservation plan to help them join the ranks of green energy companies.

In 2022, Chailease participated in more than one hundred financial leases and installment projects for energy-saving equipment financing projects (such as LEDs, cloud-based energy-saving controllers, power savers, solar photovoltaic modules, optical energy-saving fluorescent lamps, inverters, and other equipment),with a total amount financed of over NT$530 million. In addition to contributing to environmental protection, corporate social responsibility and green energy products, this also brings long-term, stable performance and benefits to the company. In the future, we will continue to replicate Taiwan's successful experience, and develop more overseas markets.

Facing with the wave of green finance and the global trend towards sustainable development and a low-carbon economy, Chailease Holding, as a fund provider, provides financing projects for energy-saving equipment and also actively supports environmental protection companies including waste treatment, removal, and resource recycling businesses, and provides funds for manufacturers that invest money in environmental protection products and reducing pollution. In 2022, it provided financing to environmental protection companies in excess of NT$770 million. By lending to the environmental protection industry, it helps the overall environment and pollution reduction and prevention. Chailease Holding hopes to exert its financial influence to the fullest, to fulfill its social responsibility, and to drive the development of sustainable finance. Chailease Holding cooperates with banks to provide funds into green financing. The fundraising projects include green bonds, syndicated loans. The cumulative amount exceeds NT$100 billion. The funds raised are used for renewable energy and green energy related projects to accelerate the development of solar power plants.

To promote energy services, the company holds occasional SME Energy Conservation forums aimed at discussion of finance issues for energy conservation efforts. The forums also share information on the current status of green industry, improving the environmental awareness of SMEs while saving energy and reducing carbon. (Since 2013, 5 forums have been held and were cumulated to 425 participants.) At the same time, when handling credit business, the company also seeks to rationalize earnings and ensure the interests of shareholders, and seeks to cooperate with the government's environmental development strategy. In providing goods and services, Chailease prudently incorporates environmental development strategies, while taking into account the interests of the company and of the broader society. During credit reviews for projects related to implementation or assistance of energy conservation, carbon reduction, renewable energy and other green energy industries, a positive assessment is given due to the better corporate qualities, and colleagues in the company are encouraged to promote such cases. 

Socially Responsible Financing
Our Vietnamese subsidiary, Chailease International Financial Leasing Corp., promotes inclusive finance activities for micro, small and medium-sized enterprises through social responsibility financing, with the aim of helping the local economy grow. The social investment plan is evaluated in accordance with the Social Loan Principles 2021 of the Asia Pacific Loan Market Association and the Social Bond Principles 2021 of the International Capital Market Association, and the investment amount is US$90 million, with a confirmation report from the accounting firm.

Core elements of the plan:
(1) Use of proceeds: Focuses on single categories, such as social and economic development and rights protection. The categories, projects, fund allocation and benefit evaluation are shown in the following table:

(2) Process for evaluation and selection: In addition to the general investigation required for credit applications, we evaluate whether the type of industry, the use of loan funds, and the actual benefits generated are in line with socially beneficial investment plans. In addition, fossil fuels, tobacco and tobacco products, weapons and ammunition, hazardous chemicals and radioactive materials, and other industries and activities prohibited by Vietnamese law are excluded from the investment program.

5 Plus 2 Industries

Chailease has actively cooperated with the government's 5 plus 2 industries innovation plan to place specific emphasis on six emerging industries: the Internet of Things, Biomedical, Green Energy Technology, Smart Machinery, New Agriculture and the Circular Economy. Chailease has provided financial leasing, installment payment, capital loan and other services to more than 1,000 companies in these industries, and injected over NT$7.9 billion into the fund in 2022. The company looks forward to igniting a flame of innovation in partnership, and driving comprehensive innovation in industry. As the plan progresses and its effect becomes more widespread, the goal is to achieve overall economic growth, turning over Taiwan's investment as a whole and the environment for her industrial development.

From finance, the company moved into its 5871 Business Trader website to provide a matching service for used equipment transactions. The idea is to allow equipment that was to be retired to be transferred and continue in operation. A total of 631 suppliers and 639 equipment types are on the system, and some 399 matchmaking transactions are concluded in 2022. This has been a great contribution toward the activation and sustainable operation of used equipment assets, and the 5871 Business Trader website is currently the largest professional used equipment trading site in Taiwan.

The development of sustainable finance is currently an increasingly important trend in Chailease’s business, and in response to the trends for energy conservation and carbon reduction worldwide, the government of Taiwan has also implemented low-carbon city and low-pollution policies. When Chailease launched its motorcycle loan business, it vigorously promoted electric scooters as well. The company agrees that clean energy is more friendly for the environment, and installment payments can help more people to be able to move toward electric scooters, as a means to work together to reduce air pollution. In 2022, Gogoro sold more than 65,000 scooters, and 5,971 Gogoro electric vehicles were financed in installments through Chailease. In addition, electric vehicles account for over 9% of Chailease's motorcycle installment business. And this number is rising annually, showing that Chailease is actively promoting clean energy as a contribution to the environment and a response to the low-carbon goal before private transport.

In addition to green financing, Chailease has also put forward more solutions for energy conservation and carbon reduction. The company's "HeyTruck platform app" was launched in 2019, targeting the trucking industry and driver groups that have been underserved by the traditional financial industry. One of the most critical services is the "Return Trip Matchmaking Service". In the past, if a trucker had completed a long haul trip with freight, he would have to drive back to the starting point empty. The "HeyTruck platform app" provides a means for truck drivers and cargo owners to get together, allowing drivers who would otherwise roll empty to help cargo owners who need carriers.

Since the launch of this app, an average of 300 successful matches have been made per month. This not only provides extra income for owners of large trucks, but also provides cheaper freight to shippers. And because the app allows effective use of vehicle resources, it also helps reduce carbon emissions. It is estimated that this will eliminate some 75,000 kilograms of carbon emissions in 2022. This is yet another Chailease effort for sustainable development of the global environment. (Note: Based on an average of 300 return cars per month, the distance from Taipei to Taichung is used to estimate the annual carbon reduction. The method for calculating annual carbon reduction is the number of return cars × number of round-trip kilometers × the amount of fuel consumed per kilometer × CO₂ emission factor per liter of oil product.) In response to government regulations, Chailease Holding also provided loans for old diesel vehicles to help replace them with new ones. In 2022, a total of 2,394 trucks were replaced with new vehicles (approximately NT$6.57 billion as of the end of 2022). This has helped reduce diesel air pollution, reduce black smoke, improve air quality, and reduce energy consumption. Chailease Holding does its best for the sustainability of the earth.

Since the promotion of Chailease's Zingala which is deeply loved by students and people just starting out in life, to encourage paperless payments, and save unnecessary wasted paper, members can make payments using the app. In 2020, the company launched a mobile app to allow vehicle installment loan payment, with no need to waste paper printing out bills. It is estimated in 2022 that more than 14 million sheets of A4 paper has been saved, reducing carbon emissions by 10.2 tons. (Note: Each pack of A4 paper contains about 500 sheets responsible for 3.2kg/CO₂e in carbon emissions. Source: Product Carbon Footprint Information Network.)

Chailease upholds corporate social responsibility. To avoid unpredictable accidental losses to enterprises, when setting up real estate collateral a customer has to insure against fire, water and earthquake risks. Items mortgaged by the company must also be insured against fire to guarantee basic insurance protection; for high-risk industries, such as shipping, based on operational responsibility requirements, ship owner liability insurance and hull insurance are required. In 2022, there were 171 marine insurance contracts, with approximately 0.98 billion in mortgage ship interest insurance (MII). Hull insurance was about 1.88 billion, indemnifying against damage to the hull or harbor through collision, as well as against death or injury to crew members, wreckage removal and possible polluting oil spills. In addition to ensuring the sustainable operation of enterprises, this policy also contributes to the protection of the environment.

Chailease's core competitiveness is the basis for its product "innovation". At the same time, the company takes corporate social responsibility into account, opening up green markets and establishing the green competitiveness of the enterprise. In 2014, the company won a MOEA Bureau of Energy bid for solar photovoltaic power generation equipment, and planned to build a solar power plant and generate power for sale. In 2015, Chailease Energy Integration Corporation was born. The company provides customers with energy-saving services and helps enterprises to fulfill their social responsibilities in the areas of green energy and environmental protection. In 2016, Chailease continued to build and acquire solar power plants, and by 2018, held 1,000 such plants. This makes Chailease the company in Taiwan with the most solar power plants. Additionally, in 2017 the company combined the sharing economy and financial technology in promoting its "Chailease Citizen Power Plant". The public can directly participate in the investment and construction of power stations by subscribing for solar panels, allowing citizens to participate in the investment in solar power generation equipment and share the proceeds according to the amount of power generated and the selling price, allowing the public to participate in the popularization of renewable energy. By the end of 2022, a total of 22 cases had been launched to enthusiastic public response, with 100% of sales completed. These 22 cases are estimated as generating over 127,004,058 (degrees) of electricity in the next 20 years, while also fulfilling Chailease's green energy corporate social responsibility.

Chailease Holdings established Chailease Energy Integration Co., Ltd. at the end of 2015 in order to actively develop energy-saving and green energy products. Chailease Energy Integration leases solar energy collection equipment to small and medium-sized enterprises for use on the roofs of existing chicken coops and composting farms. In 2014, we successfully bid for two solar power plants located in Alien District, Kaohsiung; and by October 2014, we acquired 71 solar power plants from Yun Tang inc., which were previously owned and operated by NGP, a subsidiary of Neo Solar Power Corp. for NT$445 million. Since then, we have built and acquired a large number of solar power plants. As of the end of 2022, the Company has a total of 3,234 plants with a total capacity of 1,098.27MW (GW), representing a 20% increase over 2021. The plants are expected to reduce 698,488 metric tons of CO2 emissions per year. That's equivalent to planting 58,215,815 trees. (According to our exclusive solar power service provider, as of December, 2022, the installed capacity of domestic solar power systems in Taiwan is 9,724MW with an estimated annual electricity generation capacity of 12.15 billion kWh. The annual carbon reduction is equivalent to planting 515,575,000 trees/year; website: https://www.mrpv.org.tw/index.aspx)

In order to effectively manage many power plants, Chailease Energy Integration has developed its own management software to establish a solar photovoltaic smart operation management platform which has basic monitoring and operation functions, such as detecting malfunctions, alerting maintenance, receiving sunshine, and power generation. It also has smart maintenance service functions that also ensures detailed recording of power plant information which is a credible basis for future valuation, and an important reference for evaluating the corporate value of listed power plants.

Besides, to response the green energy policies raised by the government, Chailease Holdings promoted its "Chailease Citizen Power Plant" plan internally and externally. The public can directly participate in investing and building power plants by means of subscribing the solar panels. Afterwards, based on the quantity of power generated and the selling price, investors will share the income. Having citizens participate in investment in solar generation equipment not only provides a stable investment income for investors, but also can increase domestic power sources. We expected the Chailease Citizen Power Plant plan will make solar generation more common in Taiwan and resolve the shortfall in electric power on the island. The plan can benefit everyone. Chailease Holdings works with people to implement the government's policy of "supporting green energy industry and developing green financing" and supports the development of the green energy industry with action.

At the same time, in response to changing trends of future energy use, Chailease Energy Integration Corporation, a subsidiary, also assists customers by promoting new energy creation, energy transfer, and energy storage technologies. The skilled application of energy planning includes smart power grids, electric vehicles, charging stations, and the application of energy monitoring and management systems. In addition to continuing to promote energy efficiency and carbon reduction, the company is further committed to helping enterprises establish comprehensive and innovative energy management strategies in order to integrate them with future industry trends.

In the future, Chailease Holding will continue to gradually expand related business development through its energy-efficient and green-energy value chain. By replicating Taiwan’s energy-efficient model, we will develop other overseas markets in order to make a contribution to protecting Earth's resources.

Chailease is developing both solar green energy generation and storage capabilities, opening up a road to sustainability and joining the semiconductor industry association SEMI's "PV Public Advocacy Committee". The committee want to build consensus within industry and periodically interact with relevant government officials. The "Solar Optics Public Policy Statement" was first published in 2019, actively representing Taiwan's photovoltaic industry.

Additionally, Chailease also joined the "Solar Power Generation System Commercial Industry Association", more actively connecting industry, government and think tanks while using multiple resources to actively forward knowledge on green energy and raising recognition and investment in the area, so as to spur Taiwan's achievement of energy diversification and independent supply goals.

In order to take a multi-faceted approach to customer service and to further improve service quality, continued conducting customer satisfaction surveys every year (Consumer and Corporate Banking included) . Questions about product and service needs were added in the hopes that the results would serve as the basis for improving service and service development. In this way, we can simultaneously know if our services meet customer needs. In addition to satisfaction surveys, customers can also proactively provide feedback on their needs through our customer service hotline and customer service mailbox. In the future, we will introduce digital customer service to meet customers' needs in a more timely manner and expand the scope and capacity of our services. In order to provide better services to customers, Chailease Holdings has established a customer complaint handling system, which specifies the handling process, authority and responsibility, and response time, etc., and regularly tracks and reviews the progress, with education, training and incentives to encourage staff to provide high quality services

In 2022, a customer satisfaction survey was conducted covering all major products, with a total of over 5,500 questionnaires collected. Using the quantitative conversion mechanism of indicator satisfaction, the average overall satisfaction rate of corporate finance customers was 96.8%, the average overall satisfaction rate of consumer finance (zingala card) customers was 94.4%, and the average overall satisfaction rate of short term tenant customers was 100% in 2022. The overall satisfaction rate of customers with the Company’s services exceeded the set target, reaching over 90%.

After the results were calculated, a qualitative approach was also used to gain more information about special cases. These results became an important topic in management committee meetings. It is hoped that by establishing multiple communication channels, we will be able to hear more customer voices, understand customers’ real needs, and propose the most appropriate improvement methods to achieve our goal of providing customers with the best possible service.

These topics entered into discussions among the operations and management committee. The hope is to strive to establish more and diversified channels of communication so that the company can better listen to the voices of many customers and understand their true needs. This is the way to find a pathway to improvement and gradually increase customer satisfaction with a goal of providing customers with truly excellent service.

Chailease Holdings places great emphasis on different perspectives. We collect customers’ opinions actively and take a very open-minded view of employee suggestions or any innovative thinking within the group. We set up an employee suggestion system and an incentive platform to get innovative suggestions, encouraging employees to bring forth new ideas. We hope the system will allow the thoughts from employees could be implemented, so that we can always know what the customer's need in advance.

Before bringing out a new product or service, we would have internal assessment of the legality which ensures the product or service complying with laws. All promotional ads, public relations news or employment ads which are post in print, electronically or in sound form must go through the company's internal auditing and managing processes. The coherent units must review and approve its legality to ensure the rights of those getting information and to maintain the company's reputation and image. Items officially online should be adjusted at all time based on customers’ opinions and the feedback of our employees, to meet our sole goal that design products which can meet our customers' needs.

Before the implementation of the new personal information protection law, the Company already had in a place a security mechanism for maintaining personal information, including the formulation of “Data Classification Management Measures”, “Personal information Protection Key Points”, “Information Security Policy”, “Information Security Management Key Points”, and other specifications. We clearly formulated the protection procedures to be followed for the authorization, use, storage, management and destruction of personal information. At the same time, in order to demonstrate our persistence and commitment of attaching great importance to the safety of customers’ personal information, a personal information protection team has been established to ensure the implementation of the personal information law.

Regarding the protection of personal information, the Company has three lines of defense controls to ensure that the collection, processing or utilization of personal information complies with external laws and internal regulations:

• The first-line business and responsible units shall respect the rights and interests of the parties involved in the collection, processing, and use of personal information, shall not exceed the necessary scope of the specific purpose, and shall have a legitimate and reasonable connection with the purpose of the collection. In addition, each subsidiary shall assign personal information protection management personnel and incorporate the operation of personal information protection management system into the Company’s supervision and management. If a major violation of personal information protection related laws and regulations is discovered, it should be reported to the unit responsible for personal information management immediately.
• Second-line personal information protection specialist units are responsible for supervising, coordinating, and monitoring personal information protection related matters, and should report to the board of directors at least once a year. If a major violation of personal information protection related laws and regulations is discovered, it should be reported to the board of directors immediately.
• Third-line auditing units shall conduct inspections of the implementation of personal information protection in accordance with regulations. If it is otherwise provided by laws or regulations or required by the competent authority, each subsidiary may, depending on actual needs, appoint an independent third party to conduct the inspection of the matters specified in the preceding paragraph, and provide inspection recommendations.

The Company is committed to enhancing information security management, establishing appropriate protection measures for all information areas within the Company in accordance with relevant internal and external regulations and regulations as well as regularly reviewing the suitability of the regulations to prevent improper disclosure of customer personal information, so as to reduce penalties by the competent authority that could damage the Company's reputation.

Chailease Holding and its subsidiaries attach great importance to customer information security and personal information protection. When customers provide personal information, we request they sign the "Notice of Collection, Processing and Utilization of Personal information", and strictly control the use of customers' personal information. If it is necessary to cross products or use the customer's personal information for non-primary collection purposes, it must comply with laws and regulations and obtain customer consent, and shall be handled in accordance with the following principles:

1. Comply with relevant government laws and regulations and information management principles.
2. Customer personal information is strictly stored in Chailease Holding and its subsidiaries or its entrusted information storage system with high security and stability.
3. Acquisition and use of data must be within the scope of data authorization stipulated by Chailease Holding and its subsidiaries.
4. Appropriate technical and organizational security measures have been adopted to protect customers' personal information from loss or any illegal processing.
5. Customers' personal information should not to be provided to anyone other than those notified by Chailease Holding and its subsidiaries, except when required by a judicial unit or other competent authority in accordance with applicable laws and through formal and legal procedures.

In addition, according to the personal data security protection and operation risk level, we carry out personal information masking operation of the necessary system, control the secondary use of personal data and implement various security control measures. In 2022, the rate of the secondary use of personal information of the Company and its subsidiaries is 46.27% 

1. Set the data access authority of colleagues according to different business scopes.
2. Implement USB storage device block management to reduce the risk of data leakage through the flash drive, so as to facilitate the control and review of data duplication.
3. Colleagues use mobile devices to send and receive company emails, set up authority control and only those with business needs can apply for use. We also introduce a security control mechanism to prevent storing of data in endpoints when transmission. Prevent information security risks such as data leakage or loss or theft through mobile phones to truly protect personal data safety.
4. For the information system storing personal data, professional information security vendors are regularly appointed to conduct vulnerability scanning and penetration testing, so as to maintain the defense strength of the information operating environment and keep pace with the times.
5. The internal transmission of customer information is also strictly regulated to strengthen control, and is regularly inspected by the internal audit department to ensure that all control mechanisms are effectively implemented

There is currently no personal data leakage (including Personally Identifiable Information, such as name, ID number and other information that can be distinguished or traced to individuals).

In addition, information personnel should perform the necessary systematic covering of personal information and control the secondary use of personal information in accordance with personal information security protection and operational risk levels. According to different business areas, we set up different levels of data access authorization and implemented USB storage device lockout management to reduce the risk of data leakage, thereby enhancing the control and checking of data copying. We have also set up strict specifications and controls for internal transmission of customer information. They are regularly reviewed by the internal audit unit to ensure that all control mechanisms are effectively implemented. There has been no personal information leakage (including personal information PII, such as name, and ID number that can be distinguished or traced to individuals).

To ensure the confidentiality of customer data, all our employees receive personal information confidentiality and operational security law training. This provides them with a reference and develops their consciousness of personal information issues so they will conduct good data security practices and protect personal information in their daily work. We also require employees to appropriately perform their responsibilities of protecting confidentiality and managing data, with rigorous internal rules for management as well as the gradual establishment of an audit trail and records tracing systems. The management of personal information has been included in the scope of annual audit of inspection of information and communications security and self-assessment, and through these comprehensive and targeted reviews, we will increase the protection of customer data by employees and increase knowledge of and compliance with relevant law. The auditing units of the Company and its subsidiaries shall conduct inspections of the implementation of personal information protection in accordance with regulations. We will import personal data management standards in the future (ex. BS 10012 or ISO 27701). If it is otherwise provided by laws or regulations or required by the competent authority, each subsidiary may also, depending on actual needs, appoint an independent third party to conduct the inspection of the matters specified in the preceding paragraph and provide inspection recommendations. In 2022, the company did not have any information security violations that caused the leakage of customers' personal information, and there were no confirmed complaints of infringement of customer privacy or loss of customer information.

In the future, we will continue to plan the management systems and norms related to data governance, introduce a data leakage prevention system, strengthen the customer data protection mechanism, improve the level of information security protection comprehensively, and establish a safe and reliable operating environment. The purpose of collecting customer data, the method of use and the exercise of related rights and interests are all stated in the notice of consent or contract to help customers fully understand the rights and obligations of both parties.

Company employees dedicated to the protection of personal information act based on the relevant rules of the company to appropriately handle and provide feedback on such matters, and appropriate rules are set and revised. At the same time, education and training program within the company has been enhanced and case studies and educational materials are created so that improvements of our business processes and the rigor of our internal rules will reduce the occurrence of customer complaints.