Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced paper consumption by 4.76 million sheets in 2013 through mobile insurance.
• Installed solar panels at two branches, generating an estimated 3,690 kWh of power per month.
• Loans to environmental protection and solar energy industry amounted to NT$31.57 billion (6.05% of Cathay United Bank's overall monetary disbursement).

Social Achievements

• Launched microinsurance products, protecting over 10,000 disadvantaged families.
• Established the nation's only CPBL Gambling Prevention Fund.
• Implemented the AG2.0 program for long-term employee cultivation.

Governance Achievements

• Increased the proportion of neutral board members from 23% in 2012 to 39% in 2013.
• Received an Information Disclosure and Transparency Ranking of "A" by the Taiwanese government.
• Zero cases of directors, managers, or employees receiving improper benefits reported in 2013.

Climate Goals & Targets

Environmental Challenges

• Climate change risks to investments and operations.
• Aging society and wealth inequality.
• Shrinking talent pool in the financial industry.

Mitigation Strategies

• Monitoring investments in high-climate-risk countries.
• Developing green financial products and services.
• Implementing an emergency response mechanism for natural disasters and pandemics.
• Developing financial inclusion products (microinsurance, trust services).
• Implementing a Performance and Compensation Optimization program.
• Comprehensive employee training programs (AG2.0).

Supply Chain Management

Supplier Audits: Regular onsite inspections of vendors handling personal data.

Responsible Procurement

• Green procurement policies (NT$360 million in green purchases in 2013).
• Inclusion of corporate responsibility provisions in vendor contracts.

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons, floods

Transition Risks

• Regulatory changes regarding GHG emissions.

Opportunities

• Growth in green energy sector.

Reporting Standards

Frameworks Used: GRI G4 Sustainability Reporting Framework, Financial Services Sector Supplement, Corporate Social Responsibility Best Practice Principles for TWSE / GTSM-Listed Companies, ISO 26000 Social Responsibility Guidelines, UN Global Compact

Certifications: ISO 14001, ISO 14064-1, ISO 50001 (Cathay Life)

Third-party Assurance: British Standards Institution (BSI)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Microinsurance
• Green auto insurance
• Travel insurance with automatic conversion of accidental death benefits to insurance trust.

Awards & Recognition

• "Model for Environmental Protection" Award
• "Grand Prize for Sustainable Innovation"
• "Best Companies to Work For" Award
• "Outstanding Green Procurement Enterprise" Award
• National Brand Yushan Award for "Best Product Category"

Environmental Metrics

ESG Focus Areas

• Corporate governance
• Employee relations
• GHG emission, energy usage and reduction
• Social and environmental initiative
• Legal compliance
• Supplier relationship management
• Workplace safety and health
• Inclusive finance and financial education

Environmental Achievements

• Reduced CO2 emission by implementing energy-saving management and green buildings; won the Energy Conservation Excellence Award from the Ministry of Economic Affairs.
• Achieved ISO14064-1:2006 certification for greenhouse gas emissions.
• Cathay Landmark acquired Gold Grade Green Architecture Certificate and LEED Golden Certificate.
• Green purchasing amount up to NT$204 million in 2015; received the Green Purchasing Unit Award for six consecutive years.

Social Achievements

• Launched various employee well-being initiatives, including a weight loss competition and charity events.
• Cathay Life achieved the highest market share in micro-insurance and received three major awards from the Insurance Bureau.
• Cathay United Bank completed Taiwan’s first local wind power financing project implemented in accordance with Equator Principles.
• Cathay Life's mobile claims helped nearly 580,000 claims be approved timely.
• Cathay United Bank achieved the Best Lending Platform service award for its Smart Lending service.
• Dream Come True program directly helped over 500 children and indirectly influenced tens of thousands.

Governance Achievements

• Established the Cathay Financial Holdings Corporate Sustainability Principles and Regulations Governing the Organization of the Corporate Social Responsibility Committee.
• Restructured CSR committee into CS Committee, upgrading it to the Board of Directors level.
• Cathay FHC was selected as a constituent stock of the Dow Jones Sustainability Index.
• Achieved top 5% in corporate governance evaluation and was included in the “Corporate Governance 100 Index.”
• Devised the Code of Conduct for Reporting Illegal, Unethical or Dishonest Cases.

Climate Goals & Targets

Environmental Challenges

• Volatility in the capital market (exchange rate fluctuation)
• Regulatory changes (unstable local politics)
• Changes in consumer behavior and technological risk
• Climate change and environmental risks
• Social instability/loss of trust
• The need for talents

Mitigation Strategies

• Diversified assets allocation; focusing on professional training, institutionalized investment process and strategies.
• Established Compliance Dept., International Management Dept., and other professional management divisions.
• Developed a high-spec risk management mechanism.
• Strengthened the disclosure of key information on exchange rate fluctuations.
• Implemented employee training and strengthened information security system.
• Actively recruit potential talents from campuses and invest in fostering projects.

Supply Chain Management

Supplier Audits: 8,755 sales cases reviewed for insurance brokers and agencies

Responsible Procurement

• Green procurement policy prioritizing green label products.

Climate-Related Risks & Opportunities

Physical Risks

• Climate change and environmental risks

Transition Risks

• Regulatory changes

Opportunities

• Development of energy-efficient products and green finance initiatives.

Reporting Standards

Frameworks Used: GRI G4, Financial Services Sector Supplement, Corporate Social Responsibility Best Practice Principles for TWSE/GTSM Listed Companies, ISO 26000 Social Responsibility Guidelines, UN Global Compact, Regulations Governing Preparation and Filing of CSR Reports by TSEC and GTSM Listed Companies, Integrated Reporting, Sustainability Accounting Standards, Sustainable Development Goals (SDGs)

Certifications: ISO 10002, ISO 14064-1:2006, ISO 27001：2013

Third-party Assurance: PwC Taiwan

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 13 (Climate action)
• Goal 8 (Decent work and economic growth)
• Goal 10 (Reduced inequalities)
• Goal 4 (Quality education)

Various initiatives contribute to these goals through renewable energy financing, climate change mitigation, employee well-being programs, inclusive finance, and educational partnerships.

Sustainable Products & Innovation

• Green vehicle insurance
• Bicycle insurance
• Micro-insurance
• Photovoltaic green energy loans
• Offshore wind power green energy financing

Awards & Recognition

• Dow Jones Sustainability Index constituent stock
• Energy Conservation Excellence Award
• Green Purchasing Unit Award
• Taiwan M&A Award-Most Influential M&A Award
• AsianInvestor Institutional Excellence Awards
• Best Lending Platform Implementation Award
• IDC 2015 Financial Insights Innovation Awards

Environmental Metrics

ESG Focus Areas

• Renewable Energy and Infrastructure
• Aging Society and Health
• Women Empowerment
• Community and Financial Inclusion

Environmental Achievements

• Completed GHG inventory of the group, representing 434 operational sites in Taiwan.
• CO2 emissions reduced by 1% compared with 2016.
• Hosted the electricity saving competitions for customers and employees, saving 1 million kWh of power in total.
• Achieved green procurement to the value of NT$300 million

Social Achievements

• Cathay Life won the CommonWealth Magazine's First Prize in the “Best Reputable Insurance Enterprises” category for 9 consecutive years
• CUB was awarded the “Top Service Award” by Next Media Magazine.
• The customer satisfaction rate of Cathay Life increased meaningfully by 1.5% from 2015.
• The number of customer complaints at Cathay Life fell significantly by 16.57% from 513 cases in 2015.
• The number of employees with disabilities (459) exceeds legal requirements.
• Employee engagement rate was 4.13; the response rate was 63%.
• The turnover rate was 7.28%, which was lower than the industry average.

Governance Achievements

• Completed the Group Emerging Risk Map Framework.
• Subsidiaries formed the special units or personnel in charge of anti-money laundering.
• Regulations Governing Evaluation of the Board's Performance adopted third-party certification.
• 88% of Cathay FHC's shareholders attended the shareholder’s meeting via electronic voting

Climate Goals & Targets

Environmental Challenges

• Rapidly aging population
• Climate change
• Rise in health risks
• Rapid development of digital technologies

Mitigation Strategies

• Completed Group Risk Map Framework incorporating risk factors such as extreme climate change and aging and health issues.
• Strengthened corporate ethical management with anti-money laundering and anti-terrorist financing protocols.
• Developed Fintech-related services and a new business model.
• Established the Compliance Department to ensure adherence to laws and regulations.
• Introduced risk-based approach management practices.

Supply Chain Management

Supplier Audits: 200+ suppliers signed the commitment to corporate sustainability

Responsible Procurement

• Green procurement

Climate-Related Risks & Opportunities

Physical Risks

• Extreme climate change

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standard, Financial Services Sector Supplement, Corporate Social Responsibility Best Practice Principles for TWSE/GTSM Listed Companies, ISO 26000 Social Responsibility Guidelines, UN Global Compact, Regulations Governing the Preparation and Filing of CSR Reports by TSEC and GTSM Listed Companies, Integrated Reporting, Sustainability Accounting Standards, Sustainable Development Goals (SDGs)

Certifications: ISO 14001, ISO 50001, ISO 10002, ISO 27001:2013, BS 10012

Third-party Assurance: PwC Taiwan, EY, BSI

Sustainable Products & Innovation

• Mobile Insurance
• Eco-Car Insurance
• Bicycle Rider Comprehensive Insurance
• Mango Crop Insurance

Awards & Recognition

• Dow Jones Sustainability Index (DJSI)
• Photovoltaic System-Financial Service Excellence Award
• Asian Banker's “Best Network Integration Initiative”
• Golden Torch Award
• Policyholder Ranking Award
• Award for Excellent Performance

Environmental Metrics

ESG Focus Areas

• Climate
• Health
• Empowerment

Environmental Achievements

• Reduced carbon emissions by 6.76% from the baseline (2018) within the original scope of inventory in 2020.
• Cathay Life was the first insurance company to obtain the carbon reduction label; Cathay Century established the first product category rules (PCR) in the property insurance industry.

Social Achievements

• Launched Cathay Walker program, resulting in approximately 391.25 billion steps by the end of 2020.
• Cathay Securities' systematic investment plans totaled NT$5.334 billion in debits, reaching 36% market share.
• Launched the CUB Financial Service Station, extending service hours to 9:00 PM.
• Received prestigious awards in human resource management in Asia for three consecutive years.
• Awarded NT$7.37 million in scholarships to 88 groups supporting gifted talents and youth involved in social and environmental issues.

Governance Achievements

• Received the highest rating (Outstanding) in the CG6012(2019) Corporate Governance System Assessment.
• Included ESG risks in the risk management policy and established ESG Risk Management Guidelines.
• Cathay United Bank became the first bank in Taiwan to publish the United Nations Principles for Responsible Banking (PRB) implementation report and obtain assurance in 2021.

Climate Goals & Targets

Environmental Challenges

• Climate change risks, including physical risks (typhoons, floods, temperature changes) and transition risks (policy changes, market shifts).
• Aging population and the increasing burden of healthcare and long-term care.
• Financial inclusion for SMEs, youth, elderly, and women.
• Maintaining information security in a rapidly evolving digital landscape.

Mitigation Strategies

• Integrated climate risks into the Enterprise Risk Management Framework (ERMF) and implemented scenario analysis.
• Developed various insurance products and services related to health and long-term care.
• Provided financial products and services tailored to the needs of SMEs, youth, elderly, and women.
• Implemented ISO 27001 Information Security Management System and established a Security Operation Center.

Supply Chain Management

Responsible Procurement

• ISO 20400 Sustainable Procurement Guidelines
• Cathay FHC Sustainable Procurement Policy
• Supplier Corporate Social Responsibility Code of Practice

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons and floods
• Temperature changes
• Impacts on real estate, insurance products, mortgage collateral, and life insurance death benefits

Transition Risks

• Policy and law changes affecting corporate loan customers and investment portfolios

Opportunities

• Green finance, renewable energy investments

Reporting Standards

Frameworks Used: GRI, TCFD, UNGC, PRI, PRB, PSI, ISO 26000, SASB

Certifications: ISO 14001, ISO 50001, ISO 14064-1, ISO 20400, ISO 27001, BSI 10012

Third-party Assurance: BSI Taiwan, PwC Taiwan

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 10 (Reduced Inequalities)
• Goal 13 (Climate Action)

The report details how Cathay's initiatives contribute to these goals.

Sustainable Products & Innovation

• Green vehicle insurance
• Bicycle insurance
• Public bicycle insurance
• Long-term care institution liability insurance
• Mango crop insurance
• Guava crop insurance
• Cathay MSCI Taiwan ESG Sustainability High Dividend Yield ETF
• Cathay Sustainable Private Equity Fund

Awards & Recognition

• Bloomberg Gender-Equality Index (GEI)
• Best Companies to Work for in Asia
• Taiwan Corporate Sustainability Awards
• Common Wealth Magazine Excellence in Corporate Social Responsibility
• Global Views Monthly Corporate Social Responsibility & Social Enterprise Awards
• Best Trust Finance Award
• Green Procurement Enterprise Award
• PwC CSR Impact Awards

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Risk
• Social Risk
• Governance Risk
• Responsible Lending

Environmental Achievements

• Achieved 87.56% renewable energy share in electricity supply lending by the end of 2022, exceeding the 85% target for 2025.

Social Achievements

• Became the first bank in Taiwan to have its UN PRB efforts successfully assured by accounting firms in February 2021.
• Established a Corporate Sustainability Working Group chaired by the President, with six task forces led by senior executives.

Governance Achievements

• Adopted the "Guidelines Governing ESG and Climate Risk Management."
• Established an internal ESG risk rating management mechanism.
• Complies with the UN Principles for Responsible Banking (PRB).

Climate Goals & Targets

Environmental Challenges

• Managing ESG and climate risks in lending, particularly in sensitive industries with high climate risk exposure (carbon emissions, water/electricity use, waste).

Mitigation Strategies

• Developed an exclusion list for lending (controversial weapons, human rights violations, etc.).
• Integrated climate change, environmental impact, and human rights issues into lending procedures and ESG management mechanisms.
• Implemented an ESG risk rating mechanism for loans.
• Follows the Equator Principles (EPs) for managing environmental and social risks in project finance.
• Conducts annual ESG risk assessments on all corporate borrowers.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD, UN Principles for Responsible Banking (PRB)

Environmental Metrics

ESG Focus Areas

• Climate
• Health
• Empowerment

Environmental Achievements

• Reduced carbon emissions in line with SBTi approved targets.
• Reached 16.5% renewable energy share of total energy use in Taiwan.
• Invested NT$330.5 billion in low-carbon investing and financing.
• Renewable energy financing accounts for 93.33% of power generation industry financing.
• Released the first green deposit assurance report.

Social Achievements

• Launched FitBack app, connecting with other industries to promote health management.
• Launched the Every Step Counts campaign, raising NT$6.7 million for charity.
• Reduced the number of employees with BMIs over 24 by 16.5%.
• Published the 2023 Taiwan Citizen's Financial Health Report.
• Organized the TWCAE Youth Forum for the fourth consecutive year, empowering 150 youths.
• Held Taiwan's first Impact Investment Campus Roadshow, reaching 902 students.
• Supported 82 female athletes in sports training.

Governance Achievements

• Strengthened board diversity by adding one female director.
• Implemented ISO 27001:2022 information security management system accreditation.
• Tied remuneration packages for presidents and senior executives to sustainability performance.

Climate Goals & Targets

Environmental Challenges

• Inflation, interest rate hikes, geopolitical tensions, global economic slowdown.
• Regulation and application of generative AI.
• Taiwan's demographic shift towards a super-aged society.
• Climate change.
• Cybersecurity threats.

Mitigation Strategies

• Enhanced operational capabilities.
• Accelerated cross-industry exchanges and enhanced collaborative capabilities.
• Fostered cooperation among subsidiaries for horizontal integration and expanded asset management capabilities.
• Developed a strategic blueprint centered on "Climate, Health, and Empowerment."
• Strengthened sustainable governance.

Supply Chain Management

Supplier Audits: 100% of suppliers completed sustainable procurement training.

Responsible Procurement

• Cathay FHC Sustainable Procurement Policy
• Cathay Financial Holdings Statement of Sustainability Values
• Prioritization of products with eco-friendly labels.

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons
• Floods
• Earthquakes

Transition Risks

• Regulatory changes
• Carbon taxes
• Market shifts

Opportunities

• Development of energy-efficient products
• Growth in renewable energy investments

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC, ISO 26000

Certifications: ISO 14001, ISO 45001, ISO 27001:2022, ISO 14067, ISO 46001, ISO 50001, ISO 22301

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 10 (Reduced Inequalities)
• Goal 13 (Climate Action)
• Goal 3 (Good Health and Well-being)
• Goal 4 (Quality Education)
• Goal 5 (Gender Equality)
• Goal 17 (Partnerships for the Goals)

Cathay's initiatives contribute to these goals through various programs and investments.

Sustainable Products & Innovation

• Green loans
• Sustainability-linked loans
• Green insurance
• Green bonds
• ESG funds
• Microinsurance

Awards & Recognition

• DJSI World Index (6 years)
• DJSI Emerging Markets Index (9 years)
• CDP Leadership Level A ranking (2 years)
• MSCI ESG Ratings AA Level
• FTSE4GOOD Emerging Index (9 years)
• Wealth Magazine's Taiwan Financial Award
• CommonWealth Magazine's Excellence in Corporate Social Responsibility Award
• Taiwan Corporate Sustainability Awards
• Taiwan Sustainable Investment Awards (TWSIA)
• Sustainalytics ranking 4th in global life insurance industry
• HR Asia Best Companies to Work for in Asia
• Bloomberg Gender-Equality Index
• FTSE4Good TIP Taiwan ESG Index (7 years)
• Global Views Monthly CSR Awards