Stratregy of Sustainable Development and the Framework of Integrated Report
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6 CSR REPORT 2016 - 1 - About this Report GRI:102-1、102-32、102-45、102-48、102-49、102-50、102-51、102-52、102-53、102-54、102-56 SUN Financial Holding Co., Ltd. (E.SUN FHC) has long been committed to corporate social responsibility E. and appreciates your attention to the 6th CSR report published by E.SUN FHC. This report has been prepared in accordance with the GRI Standards: Core option. Also, this report is in accordance with ISAE 3000 and the Integrated Reporting Framework. E.SUN FHC is the first financial institution in Taiwan complete GRI Alignment Service, the report was submitted for the GRI Content Index, Materiality Disclosure Service, and SDG Mapping Service. It presents the Company's ongoing efforts and results in three different aspects (economic, environmental and social). The report is available in Chinese and English, and can be download- ed from the "CSR" section of the official website. In 2016, E.SUN FHC was selected as constituent stock of "Dow Jones Sustainability Indices, DJSI, for three consecutive years" making it the first and only financial institution in CSR Taiwan to receive this honor. We believe that business management is all about creating values and making the world better. Through publication of this CSR report, we hope to communicate the ideas and practices that E.SUN has adopted towards achieving sustainability to our stakeholders. By sharing open and transparent information, we hope to learn and grow together, and bring positive influence to the society. Framework and scope of Report The CSR report is prepared and published on a yearly basis; this year's report covers the performance of E.SUN FHC and its subsidiaries (namely E.SUN Bank, E.SUN Securities, E.SUN Venture Capital, and E.SUN Insurance Brokers) in the 2016 financial year (from January 1 to December 31, 2016) with respect to economic, social and environmental aspects. In order to present a more comprehensive picture of various projects and campaigns undertaken by the group, the report also discloses activities that occurred prior to January 1, 2016 and after December 31, 2016. Scope of Report The scope of disclosure focuses on operating activities and services of E.SUN FHC and its subsidiaries (E.SUN Bank, E.SUN Securities, and E.SUN Venture Capital) in Taiwan, which accounts for 95.35% of E.SUN FHC’s net revenue. For the purposes of achieving higher economies of scale and overall synergy, the subsidiary E.SUN Insurance Brokers was consolidated into E.SUN Bank on March 25, 2016. All financial figures are denom- inated in NTD and have been audited by a certified public accountant of Deloitte. Statistics in this CSR report have been presented in a manner consistent with common international standards, and cover the performance of some of E.SUN's overseas branches. Disclosures on social welfare and charity cover the two non-profit foundations (namely E.SUN Volunteer and Social Welfare Foundation and E.SUN Foundation) and subsidiaries; whereas disclosures concerning environmental protection (e.g. use of water, electricity, petrol etc) cover E.SUN's Taipei headquar- ter building, Dengfeng Building, Boai Building, and branches located throughout the country. The 2016 greenhouse gas inventory and water inventory were inspected and certified by SGS Taiwan. To meet SGS Taiwan's requirements, part of the disclosure covers overseas offices. Any special meanings pertaining to the above quantitative indicators are explained in separate footnotes. Reporting Basis Organization Principle The Global Reporting Initiative, GRI GRI Standards: core option The Global Reporting Initiative, GRI G4 Financial Services Sector Supplement Guidelines International Integrated Reporting Council, IIRC Integrated reporting (IR) United Nations, UN Sustainable Development Goals, SDGs Taiwan Stock Exchange, TWSE Corporate Social Responsibility Best Practice Principles for TWSE/GTSM Listed Companies International Organization for Standardization, ISO ISO 26000 Social Responsibility Guidance United Nations, UN Summary of Global Compact Disclosure Quality of Information Data category Standard Certifying Organization Statement of Assurance Principles No. 1 "Audit and Review Deloitte Financial data of Non-financial Information" AA1000 BSI Taiwan Environmental data Annual financial report Deloitte ISO 14064-1 Greenhouse Gas Inventory Sustainability data ISO 14064-1 Organizational Greenhouse Gas Inventory Scope 3 SGS Taiwan ISO 14046 Organizational Water Inventory Note: This report is based on the principles of accuracy, balance, clarity, comparability, reliability and timeliness of the GRI Sustainability Reporting Guidelines. The source is provided by E.SUN FHC and its subsidiaries, and all content is approved by the CSR Committee and sernior management. Historical CSR reports Please inform us of any suggestion you may have with regards to the "Corporate Social Responsibility Report of E.SUN Financial Holding Company." E.SUN Financial Holding Co., Ltd. General Affairs Division No. 115, Section 3, Minsheng East Road, Taipei City TEL:(02)2175-1335 FAX:(02)8712-3513 [email protected] www.esunfhc.com.tw 2011 2012 2013 2014 2015 - 2 - INDEX 2 About this Report 4 Letter from the Chairman 5 2016 Sustainable performance 7 E.SUN Chronicles 8 Stakeholder Engagement 9 ˙Identification of Stakeholder 10 ˙Materiality Analysis 16 Stratregy of Sustainable development and the framework of Integrated Report 22 Business Overview 22 ˙Business strategy 26 ˙Business Performance 1. Governance(G) 28 28 1.1 Corporate Governance 36 1.2 Code of Conduct and Ethics 38 1.3 Compliance 40 1.4 Risk Management 43 1.5 Anti-money Laundering and Anti-terrorism Financing 2. Social(S) 45 45 2.1 Financial Inclusion 48 2.2 Digital Finance 53 2.3 Customer Service 60 2.4 Happy Workplace 76 2.5 Social Inclusion 3. Environment( E ) 86 86 3.1 Climate Change Risks and Opportunities 87 3.2 Responsible Lending and Investment 89 3.3 Low-carbon Operations 94 3.4 Sustainable ecosystem 100 3.5 Supplier Management 102 Appendix 102 1. Glory and Recognition in 2016 103 2. Comparative table of GRI (Global Reporting Initiative) 112 3. Human Resource Management indicators 113 4. Economic value distributed indicators 115 5. Low-carbon operations indicators 116 6. Comparative table of GRI (Global Reporting Initiative) G4 indicators of financial service sector 117 7. CSR best-practice principles for listed and OTC traded companies 118 8. Comparative table of ISO 26000 terms 119 9. UN Global Compact Comparative Table 120 10. Assurance opinion CSR REPORT 2016 - 3 - Letter from the Chairman GRI:102-14 the Chairman Letter from performance 2016 was a year of challenge and change. 2016 The global economy continued to be Sustainable volatile after the Brexit vote and the U.S. presidential election. Higher geopolitical risks also increased uncertainty in financial markets around the world. Meanwhile, the financial services sector face issues of Fintech development and internet security. Chronicles E.SUN Money laundering prevention and legal compli- ance will be key to business management for Taiwanese financial institutions looking to expand in other Asian countries. Engagement Stakeholder Interaction between technological advance- corporate social responsibilities and business ments, customer behavior changes, and regu- strategies. E.SUN, for example, invests its core latory shifts makes it necessary for a compa- competencies in financial services into ny to improve stability on the inside and corporate governance, social and environ- increase flexibility on the outside. We under- mental causes, and employees and custom- stand a fast changing environment creates ers. As an expert leader committed to ethical SD of Stratregy challenges and risks, but also lead to more management, we support responsible opportunities and hope. lending and responsible investment policies, and work hard to protect our customers' E.SUN FHC delivered further growth across all assets and contribute to green finance and business lines in 2016. In terms of financial financial inclusion. We promote environmen- and the FIR of SD Stratregy gauges, net income set another record high tal sustainability through energy conserva- of NT$13.135 billion, EPS was NT$1.50 per tion, carbon reduction, and habitat preser- share. The ROE and ROA came in at 10.35% vation. E.SUN aims to deliver the best total and 0.71% respectively. In terms of intangible performance and become the most respect- metric, the Company made its way into the ed business. Dow Jones Sustainability Index (DJSI) for a third straight year, four leading international A quarter of a century later, E.SUN celebrates Governance financial magazines—Asiamoney, The Asset, its 25th anniversary. Named after the highest ( The Banker and Global Finance—unani- mountain in Taiwan, we determine to G mously rated E.SUN Bank as Taiwan’s best become the best and most popular bank. ) bank in recognition of its long-time dedica- We believe that the ultimate purpose of tion to sustainable development and sound running a business is to enhance social business. welfare and work with the community to achieve a sustainable, coexistent relationship with Social ( E.SUN has been an honest and upstanding the environment. We appreciate the continued S ) company dedicated to integrity and profes- support of our customers and work to exceed sionalism since its establishment. E.SUN will their expectations. E.SUN employees strive to continue to work toward the three aims of be first-class citizens of the world, and E.SUN business management,