Taishin FHC Corporate Social Responsibility Report 2019

2 Message from the President Message from the President President of Taishin FHC With climate warming, generation change, and rapid advancements in technologies, corpo - rates faced a more diverse and complex set of risks than ever. A company’s capability to identify the industrial relevant risks and opportunities and to appropriately allocate resources has become key subjects to address for its sustainable development. While demonstrating our profitability through financial reporting, we transparently report ESG relevant efforts and achievements through our annual corporate social responsibility (CSR) report, sharing the accomplishments with our investors, and anyone interested in Taishin. We made a record profit year in 2019, with 12% year-on-year growth from 2018 and have been actively investing in FinTech applications and cross-industry collaboration to provide diversified financial services that are convenient and secure. We have also incorporated environmental and social risks into our financing and investment process underpinned by our “Green Finance Principles”. We honored the principles in our financial products and transac - tions to improve our sustainability practices by making amendments to 13 relevant corporate guidance and 17 review processes. In response to climate change, Taishin Bank, one of our subsidiaries, has been strengthening its evaluation and reviewmechanisms for climate sensi - tive sectors. Taishin Securities, another subsidiary, has also been supporting ESG-related sectors to raise funds and assisted four ESG-related companies to fundraise in the capital market in 2019, raising TWD 3.441 billion, representing a 300% growth from 2018. With our corporate spirit emphasizing Dedication and Innovation, we have honed a corporate culture of Integrity, strived to strengthen our corporate gover - nance and committed to improve the transparency of our information disclosures to obtain the approval and support of our stakeholders. In the future, we will continue to advance Sustainable Governance, Economic Prosperity, Green Environment, and Inclu - sive Society to create a beautiful and sustainable future for all. We know that the foundation of the financial service industry is to serve “people” and only good talents can win the trust of our customers. Therefore, we have invested heavily on our talent developments. We have recently focused our attention on developing talents for our digital transformation to prepare ourselves for long-term competitiveness. Aside from talent development, we continued to invest in local communities. In 2019, we invested TWD 300 million in charitable donations, community investment, and business initiatives. We engage and motivate our employees, suppliers, customers, and other partners to join forces in public welfare. This report disclosed our sustainability performance in 2019 as well as our sustainability strategy, management approach, and short, medium, and long-term goals. We monitored trends and listed sustainability topics which are most relevant to our operating business. We then identified material topics that have the most impact on our sustainable operations and factored allocation of the six major capitals (financial, manufactured, human, intellectual, natural, social and relationship) in our operational strategies to achieve the United Nations’ Sustainable Development Goals (UN SDGs). We continuously introspect to seek ways to improve our performance. To compile this report, we have adopted the Global Reporting Initiative (GRI) standards and followed the International Integrated Reporting Council’s (IIRC) Integrated Reporting (<IR>) framework to improve the quality of our information disclosure to respond to the interests and expectations of all stakeholders. In 2019, we appointed a corporate governance director and conducted performance evalua - tions on the Board of Directors and its functional committees to further strengthen the effica - cy of the company’s corporate governance. Our outstanding performance resulted in a top 5% position among listed companies in the “5th Corporate Governance Evaluation of the Taiwan Stock Exchange” in April 2019 and a top 10% (first-tier) position among the financial and insurance companies in the same evaluation. In addition, our risk management policies not only manage our main operational risks, but also incorporate climate risk and emerging risks into the overall enterprise risk assessment. Our business continuity management (BCM) mechanism lays out crisis levels and corresponding actions when unexpected events occur; BCM ensures the continual operation of our core functions and shorten the duration required to return to business as usual in order to protect the rights and interests of our clients and shareholders. We have reacted quickly to recent pubic outbreaks such as political demonstra - tions abroad and public health epidemics, to effectively reduce material impacts to our opera - tions. 0