Corporate Social Responsibility Report

2019 Corporate Social Responsibility Report Contributing to the world as a sustainable positive influence As a global citizen, Fubon Financial Holdings cares immensely for the world we share. We dedicate various economic, environmental, and social endeavors to create a positive influence. It is our belief that sustainability is making the right choices for the future since building a better tomorrow for you is our endowed mission. In this CSR report, we share with you Fubon Financial Holdings' footsteps in the journey to sustainability. Learn about FHC's management practices and Learn about how we actions taken in investment, take care of employee 01 Contents loaning, and insurance 7. Employee Care 4. Responsible Finance health and well-being 02 Chairman’s Message as a responsible financial 86 7.1 Heading Page as a happy enterprise. 40 4.1 Heading Page institution. 87 7.2 Promoting Employee 41 4.2 Promoting Care 1. Stakeholder Engagement Responsible Finance 87 7.3 Establishing 44 4.3 Responsible Finance 04 1.1 Identification Process Workplace Models 45 4.4 Responsible Finance Actions 04 1.2 How Stakeholders are Identified 49 4.5 Responsible Finance Results 06 1.3 Identification of Material Issues Learn about FHC's 8. Tender Care resources dedicated Quickly learn about Learn about FHC's to the five social FHC's sustainability innovative financial 94 8.1 Heading Page areas and our efforts in economic, products and services 2. Sustainable Business 95 8.2 Promoting Tender positive influence. environmental, and integrated with our core Care Strategy social aspects. 5. Innovative Services competencies that solve 95 8.3 Promoting Financial social problems. 12 2.1 Business 54 5.1 Heading Page Education Sustainability 55 5.2 Promoting Innovative 96 8.4 Cultural Cultivation 17 Services 2.2 Macroeconomic Environment 98 8.5 Caring for the Disadvantaged 18 56 5.3 Strengthening the Resilience of 2.3 Sustainability Strategy 100 8.6 Facilitating National Health 21 Social Assets 2.4 Global Sustainability 102 8.7 Children and Youth Empowerment Initiatives and Presence 59 5.4 Supporting Social Welfare Efforts 60 5.5 Promoting a More Equitable, Inclusive Learn about FHC's Society 3. Sustainable transparent and honest 66 5.6 Digital Innovations 9. Appendix governing guidelines, and 73 5.7 Customer Relationship Management Governance 105 9.1 About This Report operational management 22 3.1 Heading Page mechanisms including 105 9.2 ESG Sustainability Performance ESG risk management, 105 9.3 Corporate Governance Performance 23 3.2 Putting Sustainable Learn about how Governance into supplier sustainability and Information FHC reduces our Practice management, etc. 107 9.4 Corporate Environmental Performance operational impact on and Information 24 3.3 Strengthening the environment and our See 2019 Governance 108 9.5 Corporate Social Performance and green actions. Functions 6. Environmental Information Fubon Financial 26 3.4 Sustainability Risk Sustainability 112 9.6 GRI Standards Index and Guidelines Holdings Annual Management Report for 78 6.1 Heading Page 117 9.7 Opinion Statement 35 3.5 Ethical Management detailed financial 79 6.2 Promoting Environmental 120 9.8 Accountant’s Independent Assurance 37 information. 3.6 Increased Sustainability Sustainability Report and Efficiency of Management 80 6.3 Environmental Sustainability Initiatives 01 Sustainable Corporate Responsible Innovative Environmental Employee Tender Business Strategy Governance Finance Service Sustainability Care Care Stakeholder Engagement Chairman’s Message Fubon’s sustainability efforts and positive influence contribute to the continuity of worldwide wellness. COVID-19 has ravaged the world in 2020, infecting at least 6 million people and killing that role, it mobilizes resources to promote sustainable practices throughout the more than 400,000 people around the globe while dealing a severe blow to industries organization. The advance measures we took to combat COVID-19 also reflected our and economies everywhere. The pandemic has also sharply curtailed interpersonal emphasis on governance and rigorous management of risk. interaction and international exchanges and profoundly affected people’s psyches and In terms of the environment, Fubon Financial Holdings goes beyond government social culture. This novel coronavirus has changed the world, and citizens everywhere policy, taking environmental protection into its own hands. In the 2020 Climate Change must now be ready to deal with the “post-pandemic era.” Performance Index issued by Germanwatch, Taiwan ranked third to last in the survey As daily life ground to a halt, NASA scientists observed satellite images showing of 58 countries, a sign that Taiwan remains under pressure to lower carbon emissions. an Earth that was cleaner than ever before, an indication that the damage to the In 2019, Fubon pursued several green finance projects, including serving as the environment caused by everyday human activity is beyond what we imagined and that lead arranger of a HK$1 billion syndicated loan to China Everbright Greentech and the “sustainability crisis” is, in fact, imminent. underwriting US$300 million in green bonds for ASE Technology Holdings, to encourage Companies must be able to co-exist with society and the environment, and the greater the low-carbon transformation of the tech sector and green industry development. their influence, the greater their responsibility. As we enter the post-pandemic era, We hope to emerge as the “green accelerator” of the financial services sector, using not figuring out how to develop their business while acting socially and environmentally only investment and credit policies but also the core competencies of the insurance responsible and creating a common good will test the wisdom of every enterprise. As sector to promote change. At present, 100% of Taiwan’s offshore wind projects are one of Taiwans’ leading companies, Fubon Financial Holdings strongly believes that “now covered by Fubon, helping renewable energy companies strengthen the resilience is the moment to stand up and take action.” of their assets. In September 2019, meanwhile, Fubon Financial Holdings become a At a critical point in the outbreak, we asserted our leadership by acting responsibly. In supporter of the Task Force on Climate-related Financial Disclosures (TCFD), pledging early April 2020, Fubon Financial Holdings was the first company in Taiwan to announce to take positive action and exerting the “green” influence of the financial sector to before the end of a long holiday that high-risk employees returning from vacation could address climate change issues. work at home, keeping our staff healthy and maintaining our high standard of customer In terms of social issues, we have relied heavily on innovation to address problems service. The move was soon followed by our peers and companies in other sectors. related to social change and created a “placemaking” program unique to the financial Taking this initiative on epidemic prevention also indirectly helped the government sector. Since 2014, Fubon Life has run a “Boundless Talent Project” that has so far contain the spread of the disease. invested resources to set up 120 branch locations in 68 predominantly rural townships, Fubon Financial Holdings has also long embraced this sense of leadership and helping attract young people back to their hometowns to work. Tsai Shu-lian, a 23-year- responsibility in pursuing sustainability. Committed to making our financial clout old native of Daliao District in Kaohsiung, was one of the many young people who went count, we see ourselves as a driver of Taiwan’s push for sustainability and hope to north to find a job, but after being trained as an insurance agent, she moved back home spur business growth and become a positive force in society through sustainable to continue her career. governance, environmental and social practices. Her mother told us: “It’s great for children who have gone away to find a job to be In terms of governance, financial institutions shoulder the major responsibility of able to return home and pursue a career. They can accompany us again, and it finally safeguarding customers’ wealth and put the highest priority on risk management. At feels like a family again.” This is one of the many moving stories created by the Fubon the end of 2015, Fubon Financial Holdings launched the “ESG Visioning Project,” and program. Based on an SROI (social return on investment) tool we introduced in 2019, then refined it in 2020 by adjusting its six major strategies to “sustainable governance,” we found that every NT$1 we have invested in the “Boundless Talent Program” has “responsible finance,” “innovative services,” “environmental sustainability,” “employee created NT$11.61 in social benefits. This quantitative tool shows the success we have care,” and “positive engagement.” “Sustainable governance” was the one newly added had in turning localities around through sustainable actions. strategy to the project to strengthen risk controls, and a Corporate Sustainability Fubon’s continued efforts in the ESG domain have helped it shine in international Department was established to serve as the ESG Task Force’s secretarial unit. In sustainability circles. In 2019, Fubon Financial Holdings was invited to attend the “Seminar on Environmental, Social and Governance Factors in Financial Markets” as 02 Sustainable Corporate Responsible Innovative Environmental Employee Tender Business Strategy Governance Finance Service Sustainability Care

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