2018 corporate Annual social responsibility CSR Report Scope and boundary The contents of this Report encompass First Financial Holding Company and its seven subsidiaries: First Bank, First Securities, First Securities Investment Trust, First Life Insurance, First Financial Asset Management (hereinafter referred to as "First Financial AMC"), First Consulting, and First Venture Capital. The scope of the environmental performance ISO 14064-1 Greenhouse Gas Inventory includes all operations offices. All related statistics are calculated based on the general international standard indices, and all financial numbers are denominated in New Taiwan Dollars (NTD). Reporting principles The Global Reporting Initiative, GRI GRI standards: Core option GRI financial services sector disclosure standards CSR Code of Conduct for TWSE/GTSM Listed Companies. Report Information Taiwan Stock Exchange Corporation The Preparation and Filing of Corporate Social Responsibility Reports by TWSE Listed Companies First Financial Holding Co., Ltd. (hereinafter referred ISO 26000 Social Responsibilities Guidance to as "FFHC" or "the Company") published its first corporate social responsibility (CSR) report in 2012 International Advocacy United Nations Global Compact (for FY2011). To date, the Company has issued Sustainable Development Goals, SDGs annual CSR reports for eight consecutive years, its most recent report being issued in June 2018. In addition, it also began publishing an English External assurance of report language edition of its CSR report in 2015 (for FY2014). The purpose of these reports is to actively Standard Certification Bodies engage and communicate with various classes of SAES No. 1 “Assurance Engagements Other than Audits or Reviews of Historical Deloitte stakeholders in order to relay important information Financial Information” (stipulated with reference to the International Standard concerning FFHC and its numerous subsidiaries ("the on Assurance Engagements ISAE3000) Group"), including our sustainable development AA 1000 Assurance Standard application type 2 moderate level of assurance. British Standards Institution, BSI. strategies, action plans, latest performance and ISO 45001 Safety and Health Management System. British Standards Institution, BSI. achievements, and future plans and objectives. ISO 14064-1 Greenhouse Gas Inventory Reporting Period ISO 50001 Energy Management System The FFHC 2018 Corporate Social Responsibility ISO 14001 Environmental Management System SGS Taiwan. Report (hereinafter referred to as "this Report") ISO 14046 Water Footprint discloses the performance and actions of FFHC with regard to various aspects including economic, social, ISO 14064-1 Other Indirect Emissions Inventory (Indirect greenhouse gas emissions in transportation - Business travel) Verification environmental, and governance for calendar year 2018 (January 1 to December 31, 2018). To better ISO 14064-1 Other Indirect Emissions Inventory (Waste disposal in operations) Verification illustrate our latest advances and demonstrate chang- es in growth, some of the information contained in this Report goes back to 2015 to 2017. The revised histori- Contact method cal information has been disclosed in the appropriate Corporate Governance Section, Administration Division, First Financial Holdings Co., Ltd. section. Tel: +886-2-23485366 Fax: +886-2-23119691 Address: No. 30, Sec. 1, Chongqing S. Rd., Zhongzheng Dist., Taipei City Corporate Social Responsibility Reports from E-mail: [email protected] past years Website: http://csr.firstholding.com.tw/en/csr_report.html 2011 2012 2013 2014 2015 2016 2017 02 03 02 Report information 216 Independent assurance opinion statement 06 Chairman’s Message 222 Various Certifications 08 Awards and Acknowledgments 223 Global Reporting Initiative (GRI) Standards Content Index 10 Performance Highlights in 2018 228 GRI Financial Services Sector Supplement 12 CSR Operation 229 United Nations Global Compact Principles 15 Stakeholder Engagement 229 ISO 26000 Index Content Index 34 Sustainable Development Goals CONTENT Sustainable Governance 10048 Green Finance Happy workplace 192154 Social Harmony 49 Business performance and profitability 101 Climate change risks and opportunities 155 Human rights protection and 193 Implementation of inclusive finance gender equality 56 Corporate governance 116 Responsible investment, due diligence, 198 Charitable activities and performance and supplier management 160 Professional development and evaluation 68 Risk management management reform 126 Low-carbon operations and circular economy 77 Ethical corporate management 170 Talent recruitment and retention 141 Ecological and environmental sustainability 82 Protection of customer rights and interests 180 Occupational Safety and Health and improvement of customer satisfaction rate 148 Digital finance innovation and inclusiveness 91 Information security improvement 94 Prevention of money laundering, financial fraud and terrorism financing FFHC was selected for inclusion as a constituent in the environmental education with a "hydroponic green roof" and Insurance Group. In addition, ratings companies "TWSE Corporate Governance 100 Index" for the fourth and will become a center for green finance environment such as Taiwan Ratings, S&P, and Moody's all issued Chairman’s Message year in a row, and achieved the highest standard by education. We were awarded the “Pastoral City rating reports in 2018 approving the Group's strong ranking in the top 5% in the TWSE Corporate Governance Construction Achievement Competition and Pastoral market competitive advantages, stable corporate gover- Evaluation for listed companies. Experts - Enterprise Award” of the Taipei City Govern- nance, and business value in the financial industry, Since its establishment in 1899, First Financial Group has ment, the first awardee from the financial industry. stating that the Group has distributed client bases, sound been deeply rooted in Taiwan. Now, 120 years later, it We also actively address environmental and social financial structures, good risk management, and premi- continues to adhere to its brand spirit of "a century of issues through our core businesses. We have established FFHC pays great attention on talent training. We comply um asset quality, and recognized the Group as a bench- tradition and innovative service." No matter how the our Green Finance Committee to connect green products with digital finance transformation, develop overseas mark enterprise outstanding both in quality and quantity. external environment changes, the hundred-plus-year-old and services in the areas of green financing, green market policies, implement legal compliance, promote brand motivates us to work with caution and conscien- investment, green review, and green consumer finance. anti-money laundering and internal control, provide For 2019, we will adhere to the target of "strengthening tiousness. We continuously and steadily improve the We support the long-term development of domestic cross-disciplinary talent recruitment and training partnerships" and "deepening integrative synergy,” and sustainable development of corporate governance, renewable energy by coordinating syndicated bank programs. We also strengthen the compensation system continue to integrate sales channels to expand our customer care, employee care, environmental sustain- loans as the lead arranger of largest solar cell manufac- and provide multiple welfare measures to build a friend- business profile geographically. We also focus on the ability, and social welfare. In 2018, all of the core turers in Taiwan, in order for the government to meet its ly and safe working environment. In addition to obtaining core business of each sector, keep in line with interna- businesses operated under the Group enjoyed continued target of 20GW of installed solar photovoltaic capacity the ISO 45001 Occupational Safety and Health Manage- tional trends, and implement the "green finance" growth, in accordance with the "deeper synergistic by 2025. We have implemented inclusive finance, ment System certification, FFHC was chosen for inclusion business philosophy in accordance with UN's 17 Sustain- effects, shared value" strategy. The scale of group assets promoted friendly financial services, and provided a full as a constituent in the "Taiwan High Compensation 100 able Development Goals (SDGs), thereby enhancing the reached NT$2.94 trillion, and the consolidated net range of financial services to all sectors and groups in Index" for the 5th consecutive year and in the “Taiwan integration of corporate social responsibility into core revenue was NT$60.249 billion, which represented an society. We maintained a leading market share among Employment Creation 99 Index” for the 9th consecutive business strategies with sustainable innovation, stimulat- increase of 18.54% from 2017. Net profit after taxes was all national banks for lending to SMEs for the ninth year. ing positive momentum on transforming the economy, NT$17.332 billion. For four consecutive years, net profit consecutive year, and we have promoted digital society and the environment, setting up a model of a has remained above NT$15 billion; the earnings per inclusion to support SMEs and micro-enterprises, which While pursuing business performance, enterprises hundred year’s inheritance and sustainability. share (EPS) for 2018 was NT$1.40. The Company not only won the E-commerce Finance Award - Project for Bank nowadays should also take into account social care and