Climate Change Data

Union Insurance Co., Ltd.

Climate Impact & Sustainability Data (2020, 2021, 2022, 2023)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:628,359 Kg CO2e
Total Energy Consumption:1,206,063 Kwh

ESG Focus Areas

  • Environmental protection
  • Employee rights protection
  • Consumer rights protection
  • Corporate governance
  • Social charity

Environmental Achievements

  • Reduced CO2e emissions from 646,996 Kg in 2019 to 628,359 Kg in 2020 through energy-saving measures.
  • Implemented green procurement policies and promoted energy-friendly activities.

Social Achievements

  • Launched an anti-epidemic policy during the COVID-19 pandemic.
  • Invested in research and development of various new insurance products.
  • Sponsored 22 community activities with a sponsorship amount of NT$750,000.
  • Donated to various social welfare organizations.
  • Established 6 Union volunteer teams participating in social welfare activities.

Governance Achievements

  • Strengthened corporate governance mechanisms.
  • Implemented fair treatment of customers.
  • Improved core capital and risk-bearing capacity.
  • Maintained strong capital and profitability ratings from Taiwan Ratings, Standard & Poor’s, and A.M. Best.

Climate Goals & Targets

Long-term Goals:
  • Integrate overall resources, implement enterprise risk management (ERM), and maximize earnings and shareholder equity.
  • Become the most trusted insurance company for customers.
Medium-term Goals:
  • Adjust business structure and control risk accumulation through reinsurance.
  • Participate in public welfare activities and fulfill corporate social responsibility.
  • Construct a complete customer-oriented information system.
Short-term Goals:
  • Strengthen the professionalism of underwriters and claim adjusters.
  • Develop new channels and new customers to expand market share.
  • Promote simplification of operating procedures and information transformation.
  • Develop direct business and online insurance business.
  • Research and develop innovative insurance products.

Environmental Challenges

  • Supply chain disruptions due to COVID-19 pandemic.
  • Decline in premium revenue of travel-related insurance and cargo transportation insurance.
  • Fierce competition in the saturated property insurance market.
  • Increased reinsurance premiums due to global climate abnormalities and natural disasters.
  • Stringent legal requirements due to government regulations.
Mitigation Strategies
  • Developed alternative sourcing strategies.
  • Strengthened product development and service innovation.
  • Improved operational efficiency.
  • Adjusted business structure and controlled risk accumulation through reinsurance arrangements.
  • Strengthened corporate risk management and internal audit and internal control operations.

Supply Chain Management

Responsible Procurement
  • Green procurement policies

Climate-Related Risks & Opportunities

Physical Risks
  • Abnormal weather, natural disasters
Transition Risks
  • Regulatory changes, market shifts
Opportunities
  • Development of green energy products

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 27001 (Information Security Management), BS 10012 (Personal Data Protection)

Third-party Assurance: KPMG Taiwan, British Standards Institution (BSI) (expected)

Sustainable Products & Innovation

  • Green energy motor insurance
  • Various new insurance products addressing climate change and social needs

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:549,304 Kg CO2e (2021)
Total Energy Consumption:1,094,232 Kwh (2021)

ESG Focus Areas

  • Corporate Governance
  • Customer Care
  • Talent Cultivation
  • Digital Upgrading
  • Social Welfare
  • Environmental Sustainability

Environmental Achievements

  • Reduced electricity consumption from 1,206,063 Kwh in 2020 to 1,094,232 Kwh in 2021, resulting in a reduction of approximately 549,304 Kg CO2e to 359 Kg CO2e.
  • Implemented various energy-saving measures, including using LED lamps, replacing old air conditioners, and promoting paper reduction.

Social Achievements

  • Allocated more than NT$13 million in employee benefits in 2021.
  • Conducted 1124 occupational safety and health education and training for employees in 2021, with a training rate of 100%.
  • Average annual training hours per employee were 22.57 hours.
  • Actively participated in various public welfare activities, including sponsoring events and donating to social welfare groups.

Governance Achievements

  • Established an Audit Committee and formulated “Rules Governing the Scope of Powers of Independent Directors” and “Audit Committee Charter”.
  • Arranged continuing education courses for all directors annually.
  • Implemented a robust internal control system, including measures for anti-money laundering and counter-terrorist financing.
  • Obtained ISO 27001 information security management system certification and BS 10012 personal data protection certification.

Climate Goals & Targets

Long-term Goals:
  • Becoming the most trusted insurance company for customers.
Medium-term Goals:
  • Adjusting the business structure and controlling risk accumulation.
  • Constructing a customer-oriented information system.
  • Implementing enterprise risk management (ERM).
Short-term Goals:
  • Strengthening the professionalism of underwriters and claim adjusters.
  • Developing new channels and customers to expand market share.
  • Promoting the simplification of operating procedures.
  • Developing direct business and online insurance business.
  • Developing innovative insurance products.

Environmental Challenges

  • Fierce market competition leading to price cuts.
  • Increased reinsurance premiums due to global climate abnormalities and natural disasters.
  • Stringent legal requirements from the competent authority.
  • Increasing consumer awareness leading to higher liability insurance settlements and increased auto repair costs.
Mitigation Strategies
  • Strengthening cross-industry alliances and expanding direct business.
  • Developing innovative products and simplifying operating procedures.
  • Recruiting excellent business employees and improving underwriting and claim adjusting.
  • Properly arranging reinsurance to transfer risks.
  • Strengthening corporate risk management and internal control.

Supply Chain Management

Supplier Audits: Regular visits to outsourced printing companies.

Responsible Procurement
  • Requiring manufacturers to provide products with environmental protection and energy-saving labels.

Climate-Related Risks & Opportunities

Physical Risks
  • Global climate abnormalities and frequent international natural disasters
Opportunities
  • Actively developing weather insurance products and green energy products.

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 27001, BS 10012

Third-party Assurance: KPMG

Sustainable Products & Innovation

  • Union Certifiable Disease Isolation Costs Insurance Supplementary Clause
  • Union On-Duty Group Personal Accidental Insurance Supplementary Clause for Off-Duty Period
  • Union “Ping -An Want” Group Personal Accident Insurance Emergency Expenses Insurance Supplementary Clause
  • Union New Comprehensive Certifiable Disease Compensation Supplementary Clause
  • Union Automobile Third Party Liability Insurance Additional Driver Injury Insurance Medical Injury Payment Supplementary Clause (Paid in Full)
  • Union Residential Mortgage Supplementary Clause (for Comprehensive Residential Miscellany Insurance)
  • Union Public Liability Insurance Contractor or Subcontractor Supplementary Clause
  • Union Insurance Cash Definition Expanding Supplementary Clause (Specific Securities)
  • Union Drone Liability Insurance Pesticide Spraying Operation Supplementary Clause

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:537,876 Kg CO2e
Total Energy Consumption:1,050,837 kWh

ESG Focus Areas

  • Environmental Sustainability
  • Social Welfare
  • Corporate Governance

Environmental Achievements

  • Reduced CO2e emissions from 549,304 Kg in 2021 to 537,876 Kg in 2022 through energy-saving measures.
  • Implemented green procurement policies and promoted energy-friendly activities.

Social Achievements

  • Launched pet insurance and a new version of travel insurance with expanded coverage.
  • Allocated nearly NT$13 million in employee benefits in 2022.
  • Conducted 1151 occupational safety and health education and training sessions in 2022 with 100% training rate.
  • Average annual training hours per employee were 34.67 hours.

Governance Achievements

  • Established an Audit Committee, a Compensation Committee, and a Risk Management Committee.
  • Implemented a Board of Directors performance evaluation method.
  • Regularly assesses the independence and competence of CPAs.

Climate Goals & Targets

Long-term Goals:
  • Integrate overall resources and implement enterprise risk management.
  • Strive to maximize earnings and shareholders' equity.
  • Adhere to the Group’s business philosophy and strengthen insurance expertise and corporate governance.
Medium-term Goals:
  • Continuously adjust business structure and review product competitiveness.
  • Participate in public welfare activities and fulfill corporate social responsibility.
  • Construct a customer-oriented information system and strengthen information management.
Short-term Goals:
  • Strengthen underwriting and claims control to stabilize surplus.
  • Promote simplification of operating procedures and information transformation.
  • Invest in digital operations and utilize e-commerce advantages.
  • Develop diversified products to meet customer needs.

Environmental Challenges

  • Rising epidemic claims in 2022 resulted in underwriting losses.
  • Increased reinsurance costs due to frequent natural disasters.
  • Inflation increased the cost of insurance claims and liability settlements.
  • Implementation of IFRS17 impacted financial practices and manpower allocation.
Mitigation Strategies
  • Strengthened corporate risk management and internal controls.
  • Developed new products and services to meet customer needs.
  • Consolidated existing customer base and strengthened channel development.
  • Trained reinsurance and actuarial personnel and improved underwriting and claim adjuster quality.

Supply Chain Management

Supplier Audits: Regular visits to outsourced printing companies.

Responsible Procurement
  • Green procurement policies; products with Green Mark and Energy Label.

Climate-Related Risks & Opportunities

Physical Risks
  • Frequent natural disasters
Transition Risks
  • Increased reinsurance costs
  • Government regulations
Opportunities
  • Development of green insurance products

Reporting Standards

Frameworks Used: GRI General Guidelines 2021, AA1000 Principles of Accountability, TCFD

Certifications: ISO27001 (Information Security Management), BS10012 (Personal Data Protection)

Third-party Assurance: KPMG

Sustainable Products & Innovation

  • Pet insurance
  • New travel insurance with expanded coverage
  • Green insurance products

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:524,649 Kg CO2e
Scope 1 Emissions:0
Scope 2 Emissions:524.9
Total Energy Consumption:1,059,897 kWh
Water Consumption:11.349 million liters
Carbon Intensity:0.515 metric tons CO2e/NT$ million revenue (2023)

ESG Focus Areas

  • Environmental Sustainability
  • Corporate Governance
  • Social Responsibility

Environmental Achievements

  • Reduced per capita carbon emissions by 10.6% (with 2020 as the base year)
  • Reduced per capita water consumption by 2% (with 2020 as the base year)
  • Reduced per capita electricity consumption by 12% (with 2020 as the base year)

Social Achievements

  • Allocated nearly NT$15.6 million in employee benefits in 2023
  • Conducted 1,129 occupational safety and health education and training for employees in 2023, with a training rate of 100%
  • Average annual training hours per employee were 32.58 hours

Governance Achievements

  • Established an Audit Committee
  • Formulated “Rules Governing the Scope of Powers of Independent Directors” and “Audit Committee Charter”
  • Arranged continuing education courses for all directors every year

Climate Goals & Targets

Long-term Goals:
  • Reduce per capita carbon emissions by 16.5% by 2032 (with 2020 as the base year)
  • Reduce per capita water consumption by 4.5% by 2032 (with 2020 as the base year)
  • Reduce per capita electricity consumption by 15.5% by 2032 (with 2020 as the base year)
Medium-term Goals:
  • Reduce per capita carbon emissions by 13% by 2029 (with 2020 as the base year)
  • Reduce per capita water consumption by 3.5% by 2029 (with 2020 as the base year)
  • Reduce per capita electricity consumption by 13.5% by 2029 (with 2020 as the base year)
Short-term Goals:
  • Reduce per capita carbon emissions by 11.5% by 2024 (with 2020 as the base year)
  • Reduce per capita water consumption by 2.5% by 2024 (with 2020 as the base year)
  • Reduce per capita electricity consumption by 12.5% by 2024 (with 2020 as the base year)

Environmental Challenges

  • Increased reinsurance premiums due to global natural disasters
  • Impact of IFRS17 on financial practices and manpower allocation
  • Inflation increasing the cost of insurance claims
Mitigation Strategies
  • Strengthen corporate risk management and internal audit and internal control operations
  • Develop new products and services to meet customer needs
  • Consolidate existing customer base, strengthen cross-industry alliance strategies, and enhance channel development

Supply Chain Management

Supplier Audits: Regular visits to outsourced printing companies

Responsible Procurement
  • Green procurement policies
  • Require manufacturers to provide products with environmental protection and energy saving labels

Climate-Related Risks & Opportunities

Physical Risks
  • Typhoon risk
  • Flood risk
Transition Risks
  • Exposure of carbon-related assets
  • Impact of low-carbon transition policies
Opportunities
  • Development of climate insurance and energy storage equipment

Reporting Standards

Frameworks Used: GRI General Guidelines 2021, AA1000 Principles of Accountability, TCFD, SASB

Certifications: ISO27001, BS10012

Third-party Assurance: KPMG

Sustainable Products & Innovation

  • Climate insurance
  • Energy storage equipment insurance
  • Green energy related products