CHIMEI separately signed agreements with Chang Hwa Bank, E.SUN Bank, and Mizuho Bank for a total of NT$8 billion in three-year sustainability-linked loans (SLL) in August. The loans will be used for the Company's energy conservation and carbon reduction measures, water resource reuse, and other action plans related to the vision of "Clean & Green."

SLL refers to financial institutions not only assessing the company's financial indicators and business performance when evaluating the terms and conditions of a loan, but also taking into consideration the company's inputs into each aspect of ESG, linking external loans to the company's internal sustainability indicators. Compared with green loan programs that need to specify the purpose for funds, SLL has the advantage of not limiting where funds can be used, and companies can clearly declare sustainability indicators that are most relevant to their business environment.

The sustainability-linked KPI set by CHIMEI was "GHG reduction," specifically GHG emissions (Scope 1 + Scope 2) during the loan period must be reduced by 4.2% per year using 2021 as the baseline year. This KPI is consistent with the international initiative that CHIMEI is currently participating in: Science Based Targets initiative (SBTi), i.e., the carbon reduction goal is set under the scenario to control global temperature rise within 1.5°C, and symbolizes CHIMEI's determination to continue moving forward under global concern for carbon reduction issues.

The KPI is consistent with the standard of the Sustainability-Linked Loan Principles (SLLP) established by the international financial sector to use science-based methods, and was verified by the third party Ernst & Young. CHIMEI's efforts were recognized by banks participating in the loans, and the banks will express their support by lowering interest rates once CHIMEI achieves the KPI, supporting CHIMEI's vision of "Clean & Green" with their actions.

CHIMEI has monitored the issue of environmental sustainability for years, and actively participates in the domestic and overseas green finance markets. CHIMEI started by issuing NT$5 billion in green bonds in 2018, supporting the United Nations Principles for Responsible Investment (PRI), and recently undertaking green time deposits and participating in Singapore's CIX carbon credit trading market, which show CHIMEI's confidence and determination to bravely challenge new fields. In the future, CHIMEI will more actively cooperate with suppliers, customers, and financial institutions in environmental issues, in order to achieve the sustainability goal of "Clean & Green" and work together with the world towards net zero emissions.