Taishin FHC Corporate Social Responsibility Report 2019

1 Message from the Chairman Message from the Chairman Chairman of Taishin FHC As social-economical development progress, the financial industry undertakes an important role bearing social trust and funds. Not only do we play the intermediate role to efficiently allocate market resources, we also strive to achieve social prosperity. Thus, we have upheld our core values of Integrity, Commitment, Innovation, and Collaboration (ICIC) and character - ized our brand spirit as “Devotion”. We have been tactfully responding to the rapid changes in international political dynamic, the increasing challenges in climate change and the disruptive innovations in technology etc. Through steady growth, we strive to be a trustworthy financial institution. The rapid development in FinTech and pure online banking has brought new challenges, but “customer centric” remains our number one priority. We leverage on our core business as a financial service provider to create a convenient, diversified, and safe financial ecosystem for the customers. To further expand our international service coverage, we pioneered collabora - tion on cross-border payment service with Hana Financial Group (HFG), the largest Financial Group in South Korea, in 2019. We have continued to explore other partnership opportunities with overseas partners and strategically applied FinTech to our businesses and developed relevant talents through trainings. We are committed to becoming one of the best digitalized financial groups globally. Besides investing in our core financial business, we also aim to create societal prosperity. In the aspect of Arts and Culture Development, the Taishin Arts Award organized by the Taishin Bank Foundation for Arts and Culture has become a signature award for contemporary arts as well as the best platform that allows Taiwanese artists to express their works on an international level. In addition, the “Power of Love” campaign organized by the Taishin Charity Foundation (TCF) has reached its 10th anniversity. Over the decade, this campaign has supported close to 1,000 social welfare organizations/individuals, and granted more than TWD 200 million of charity funding. The Foundation has been inviting corporates, partnering sponsors and experts to contribute towards the campaign and has generated a virtuous cycle in the society. Addition - ally, Taishin also made considerable contributions towards sports sponsorships and academic exchanges. The World Economic Forum held in Davos this year (2020) specifically themed “Stakeholders for a Cohesive and Sustainable World” and discussed a redefinition of stake - holders of corporates to include the global community, as human is unable to survive alone on this planet. This insight heralds the coming of a new era! As a Taiwanese-based company with a global ambition, we will continue to contrib - ute through our model that aims to achieve environmental and social prosperity; and, through allocating resources appropriately abiding sound sustainable strategy, we fulfill our social mission as a financial servicing company which continue to create sustainable values for our stakeholders and become everyone’s Smart Partner. We believe that along with the pursuit of profit, companies must also consider long-term sustainable development. Therefore, we assess our business strategies against Environmen - tal, Social, and Governance (ESG) concepts and integrate internal and external resources to advance our sustainability efforts in four dimensions, Sustainable Governance, Economic Prosperity, Green Environment, and Inclusive Society. Additionally, we support United Nations Sustainable Development Goals (SDGs) published in 2015 through actions, working towards the overarching sustainable development directions! Through strategies settings and project implementations in recent years, sustainability concept has become a part of corporate culture and the efforts were recognized through various accolades. In 2019, we were honored by 153 domestic and international awards. We were named to the Dow Jones Sustainability World Index and Dow Jones Sustainability Emerging Market Index, both for the second year since 2018. We were also included in Taiwan Stock Exchange Corporate Governance 100 Index, Taiwan Stock Exchange High Compensation 100 Index, FTSE4Good TIP Taiwan ESG Index, FTSE4Good Emerging Market Index, Top 100 Best Performing Companies in Emerging Markets of Vigeo Eiris, etc. We take this opportunity to thank all our stakeholders for the supports and accreditations. The 2015 Paris Agreement urged corporate citizens to limit global temperature rise, and since then we have been actively assessing how to exercise our influence as a financial institution to combat climate change and to facilitate capital flow towards a low carbon economy. To further advance sustainable finance, we established the “Green Finance Principles” in 2018 whereby we underpinned our green credit review process by considering ESG risks and opportunities. In addition, we have officially signed the Equator Principles in 2019, joining the international community’s efforts to creating a sound financing environment. Regarding our operational management, we not only have been early advocates for various international environmental initiatives such as the Carbon Disclosure Project (CDP), we have also become a signed supporter of the Task Force on Climate-related Financial Disclosures (TCFD) in 2019. By identifying our climate-related risks and opportunities, we enabled ourselves to plan adap - tation strategies and set corresponding measures to prepare for the future. 0