Regulations Governing the Preparation of Financial Reports by Securities Firms Article 32-1

A securities firm that meets certain criteria as mentioned in Article 11, paragraph 3 shall handle the preparation and disclosure of sustainability-related financial information in accordance with the following subparagraphs and relevant laws and regulations; matters not specified therein shall be handled in accordance with the IFRS Sustainability Disclosure Standards (hereinafter, "Sustainability Disclosure Standards") as endorsed by the FSC:1. The securities firm shall identify sustainability-related risks and opportunities that could reasonably be expected to affect its prospects in accordance with the Sustainability Disclosure Standards and shall refer to industry-based disclosure topics as specified in the Sustainability Accounting Standards Board (SASB) Standards, and shall disclose material information that could reasonably be expected to affect the securities firm's cash flows, access to finance, or cost of capital over the short, medium, or long term. Information is "material" if omitting, misstating, or obscuring such sustainability-related financial information could reasonably be expected to influence decisions that primary users of general-purpose financial reports make on the basis of such information.2. The securities firm's sustainability-related financial information shall be for the same reporting entity and reporting period as the related financial reports. Except for the first annual reporting period in which the securities firm applies the Sustainability Disclosure Standards, the securities firm shall disclose comparative information for the preceding period simultaneously.3. The securities firm shall declare that its sustainability-related financial information has been prepared in accordance with the Sustainability Disclosure Standards endorsed by the FSC, and shall fairly present such information to ensure it meets the qualitative characteristics of relevance, faithful representation, comparability, verifiability, timeliness, and understandability.4. The securities firm shall enable primary users of general purpose financial reports to understand the connections between sustainability-related financial information and related financial reports. Data, assumptions, and units of measure used to prepare sustainability-related financial information shall be consistent with those in the same period's financial reports; any significant differences shall be disclosed.5. The securities firm shall disclose sustainability-related financial information according to the core content including governance, strategy, risk management, and metrics and targets. In accordance with relevant provisions of the Sustainability Disclosure Standards, the securities firm may use all reasonable and supportable information available at the reporting date without undue cost or effort, and may make disclosures quantitatively or qualitatively using an approach that is commensurate with its skills, capabilities, and resources.6. In the first annual reporting period in which the securities firm applies the Sustainability Disclosure Standards, the securities firm is permitted to disclose only climate-related information, and shall disclose that fact.7. Regarding measurement methods for greenhouse gas emissions in climate-related information: Except for emission sources required to be inventoried under the Climate Change Response Act, which shall be handled by methods prescribed by the Ministry of Environment, measurements shall be conducted in accordance with the Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard or methods endorsed by the FSC. Information on applicable methods, measurement approach, inputs, and assumptions shall be disclosed in accordance with IFRS S2 Climate-related Disclosures. If, in the annual reporting period immediately preceding the initial application of the Sustainability Disclosure Standards, the securities firm used another method for measuring its greenhouse gas emissions, it is permitted to continue using that other method in the first annual period in which the securities firm applies the Sustainability Disclosure Standards.8. When preparing Scope 1 and Scope 2 greenhouse gas emission information in climate-related information, the securities firm shall obtain and disclose assurance opinions from independent third parties in the manner prescribed by the FSC. Scope 3 greenhouse gas emission information shall be disclosed according to the timeline prescribed by the FSC.