In 2022, the world was ravaged by the war in Ukraine and the pandemic. Inflation rose sharply and the economy declined. Climate change and social issues were also factors that pushed people to change their way of life. A constantly changing world may create many challenges, but also offers a great opportunities for reflection of company growth and business strategies. Despite volatility in domestic and foreign markets, Taishin FHC and all of our employees showed strong resilience and delivered a solid performance in 2022. In addition to the Taiwan market, Taishin actively sought growth overseas to achieve the goal of establishing ourselves as an integrated regional Asian Pacific financial institution with a network covering China and the Asian Pacific market.
Taishin FHC aligns ourselves with global trends in sustainability and has received recognition for our efforts in various areas in the country and overseas. In 2022, Taishin FHC was included in Dow Jones Sustainability (DJSI) World and Emerging Market Indices for the fifth consecutive year and rated as sector leader (AA) by MSCI ESG for the third consecutive year. We were also rated leadership level (A-) in climate change by CDP in 2022. Moreover, Taishin has been the components of several local sustainability indices, including the TWSE Corporate Governance 100 Index, Taiwan High Compensation 100 Index, and Taiwan Sustainability Index for years. In 2022, Taishin FHC received over 110 awards in corporate sustainability, fintech, innovative products, quality services, and business performance. In particular, Taishin received five awards at the 2022 Taiwan Corporate Sustainability Awards (TCSA) and was named one of the Top 100 Sustainable Businesses in Taiwan for the sixth time.
Governance: Establishing board level sustainability committee to further promote sustainable finance
Regarding corporate governance, Taishin FHC takes a top-down approach to raise sustainability awareness among our employees. To embed sustainability in daily operations, the Corporate Sustainability Committee was elevated to being one of board level functional committee in 2022. Corporate sustainability office was set up directly under the CEO of Taishin FHC, responsible for the execution of Taishin’s sustainability-related projects and regularly monitoring the achievements of the six functional sub-groups. In this way, ESG believes can be integrated into business operations and processes to achieve sustainable transition of Taishin and our clients as a whole.
Regarding promotion of sustainable finance, Taishin actively implements responsible investing/financing and engages with our clients in developing green/sustainable products and services with an aim to support green businesses and low carbon economy. Meanwhile, Taishin establishes corresponding strategies to support competent authority's “Green Finance Action Plan 3.0” and “Corporate Governance 3.0 Sustainable Development Roadmap”. All of our subsidiaries have implemented “the Stewardship Principles for Institutional Investors” and are dedicated to responsible investment and decarbonization actions, including setting clear timetable to phase out financing to coal and oil and gas companies, implementing the Equator Principles in project finance, as well as actively supporting green and environment friendly businesses to grow through product and service development. In 2022, our lending and investment exposure to relevant businesses have reached NT$1.168 trillion.
Environment: Building a green lifestyle from our operation to customers
Taishin is committed to energy conservation and carbon reduction in our own business operation. In 2022, Taishin implemented ISO14064-1:2018 greenhouse gas inventory certification and ISO14001 environment management certification for the Group, and ISO 50001 energy management certification for Taishin FHC and Taishin Bank. In 2025, the scope of GHG inventories and certification will expand to all subsidiaries on the consolidated financial statements. Self assessment is performed regularly to track progress on environmental targets to effectively manage our impacts on energy, water, and waste of our own operations.
To leverage on a financial institution's role in guiding capital flows, Taishin was the first in the industry to launch preferred loans for buildings with energy efficiency labels. Taishin Bank supports the Ministry of Interior's new net zero building policy and introduces preferred loans for buildings with energy efficient building labels. Taishin hopes to urge more applications of energy efficient buildings, more replacements of energy consuming equipment, and more installation of energy efficient lighting fixtures to save energy for our customers. We also work with businesses to achieve environmental sustainability. Taishin Bank connects and combines systems inside and outside the bank through Taishin SME eco ECO Digital Financial Service Platform, making Taishin the first bank in the country to help SMEs in green digital transition and achieve ESG in an easy and friendly way, which has received positive feedback from SME clients.
Regarding retail banking services, Taishin Bank works actively to develop digital services and innovation. Taishin Bank also keeps optimizing online loans and other transaction services. Such optimization includes offering credit card rewards for purchase of electric cars and sharing rides. The Gogoro Rewards co-branded card encourages consumers to switch to low carbon living and directs public attention to environmental sustainability.
Society: Utilizing technology and innovation to achieve financial inclusion and offering various services to disadvantaged groups
Taishin offers micro insurance and loans for disadvantaged groups and seniors. We also provides venture capital for startups. In 2022, Taishin's digital banking brand, Richart, became Taiwan's first digital banking service to allow foreign nationals to open an account online. Taishin created a foreigner friendly digital banking service and holds an over 20% market share in digital banking. Taishin has been the digital banking market leader for six years in a row. Richart Life is a first-of-its-kind lifestyle ecosystem in Taiwan, which combines payment and reward in a lifestyle ecosystem. The sustainable business section, healthy living section, and charity section were added in 2022 to provide all financial services under one roof.
Taishin supports disadvantaged groups and provides financial services in remote regions, and combines credit cards and charity with product innovation. In 2018, Taishin collaborated with DOMI Earth, Taiwan’s first B Corp (Benefit Corporation), to encourage cardholders to change paper statements to digital statements and support the vulnerable energy-saving appliances. By the end of 2022, more than 1.35 million cardholders have been called upon to use digital statements instead of paper ones, and nearly 510 vulnerable households have been supported by energy-saving appliances in Taiwan. Furthermore, Taishin is the first in the industry to initiate the "Public Welfare Tree Planting Project". It follows a ”sapling for savings” model in which Taishin purchased 4,000 saplings and invited social groups to plant them. It provides a new source of funding for social groups and the saplings planted in Taitung University contributed to the land and the environment as a whole.
Looking forward, Taishin will strive to be competitive in sustainability by considering carefully the environmental and social impacts of our business operations while pursuing strong growth. No one is an outsider when it comes to climate issues. We believe anyone can go “from Zero to Hero” as long as one is willing to do one's part to save the planet and revert the crisis.
President of Taishin FHC
