O-Bank Earns Outstanding Ratings from Morningstar Sustainalytics Ranks No. 1 in Taiwan Among Financial Institutions and No. 2 Among All Listed Companies Included Among "ESG Industry Top Rated" and "ESG Regional Top Rated"

Taipei---In the latest ESG Risk Rating published by Morningstar Sustainalytics in February 2024, O-Bank received an excellent ESG Risk Rating of 7.6, and according to the Taiwan Depository & Clearing Corporation Investor Relations Platform (TDCC IR Platform), O-Bank has ranked No. 1 among all financial institutions in Taiwan for the second consecutive year as well as No. 2 among all companies listed in Taiwan. Moreover, O-Bank's ESG Risk Rating is among the top 1% of all companies rated worldwide. Thanks to this strong showing, O-Bank was included by Sustainalytics among its "ESG Industry Top Rated" and "ESG Regional Top Rated" companies. These superb results highlight the outstanding job that O-Bank has done in implementing sustainable business practices and controlling its business risks.

Morningstar Sustainalytics has more than 30 years of experience in the preparation of ESG ratings, and is one of the world's most authoritative ESG ratings organizations. It regularly examines the environmental policies, social impact, and corporate governance systems of over 15,000 companies throughout the world, including Taiwan's 400 largest companies by market capitalization. Sustainalytics ESG ratings take risk management as the principal focus in classifying each of various risks faced by rated companies as "managed risk," "unmanaged risk," or "unmanageable risk." A Sustainalytics ESG Risk Rating is calculated as the difference between a company's overall ESG Exposure score and its overall Managed Risk score. The lower a score, the better is a company's ESG risk management performance. A score of 0–10 indicates negligible risk, 10–20 indicates low risk, 20–30 indicates medium risk, 30–40 indicates high risk, and anything above 40 indicates severe risk.

In the latest ESG Risk Rating published by Morningstar Sustainalytics in February 2024, O-Bank received an excellent ESG Risk Rating of 7.6, which is even better than the previous year's rating. Data from the TDCC IR Platform indicates that Sustainalytics ranks O-Bank No. 1 in Taiwan among financial institutions and No. 2 among all listed companies, and Sustainalytics furthermore, based on its 2023 rankings, includes O-Bank within the "ESG Industry Top Rated" worldwide and among the "ESG Regional Top Rated" for Asia/Pacific. Only two Taiwanese banks achieved this distinction, which shows the high international regard that O-Bank enjoys for the outstanding job it has done in implementing sustainable business practices and carrying out measures to improve its performance.

In this latest Sustainalytics ESG Risk Rating Report, O-Bank received perfect scores on 22 different indicators. Its risk was classified as negligible in ESG Integration, Business Ethics, Data Privacy and Security, Human Capital, and Product Governance, and the Bank's overall ESG Risk Management score was placed in the highest "Strong" category. In addition, the Risk Rating Report also stated: "O-Bank's overall ESG-related disclosure follows leading practice, signaling strong accountability to investors and the public, and a CSR Committee effectively exercises a strong oversight function. Executive compensation has been explicitly linked to the company's core development strategies, and the bank's readiness to address important ESG issues is better than the global average. Moreover, O-Bank continues to implement a compensation system that is linked to ESG performance targets, has launched a Gender Pay Equality Program, and has taken steps to enhance its environmental protection and ethical management policies. The company's overall management of material ESG issues is strong."

O-Bank Chairperson Tina Y. Lo stated: "O-Bank firmly believes that, in addition to pursuing business growth, we must also use our power as a financial institution and pay due attention to the need for positive ESG developments. O-Bank is fortunate to receive this affirmation from Sustainalytics, and we intend to employ a more rigorously constructed mechanism for management of sustainability risk, continue optimizing our CSR measures, and ensure that companies achieve a healthy co-existence with the natural environment and society. We want to exert a positive influence."