In order to tackle risks faced with international sustainable developmental trend and climate change, TCS has committed itself to sustainable development by implementing the “Sustainability Policy”, the “Sustainable Financial Policy”, and the “Sustainable Development Best Practice Principles”as the highest guiding principles for each subsidiary to understand ESG risks and opportunities. It combines environmental, social, and governance (ESG) efforts with business operational policies to sketch out the blueprint of sustainable developmental strategy from six aspects, namely, corporate governance, sustainable finance, customer commitment, employee care, environmental sustainability, and social inclusion. The Group has made United Nations’ Sustainable Development Goals (SDGs), Taiwan sustainable development goals and ESG factors part of the business guidelines with refined strategy and goals. The aim is to extend reach as a financial institution through innovative financial products and services and work together with stakeholders to pursue economic, environmental and social inclusions

2024

2023

2022

(1)Management of Climate Change Risk

Climate change has become a global issues that cannot be ignored. As an important player in the capital market, the financial industry should become a leader in climate change management. The TCFHC became a TCFD Supporter in December 2020 and established a cross-subsidiary TCFD Taskforce within the Group include TCS. The Company has gradually established the Group’s risks and opportunities identification, measurement, monitoring, reporting and other management procedures through education and training and taskforce meetings according to TCFD's “Governance,” “Strategy,” “Risk Management,” and “Metrics and Targets.”

Following the “Task Force on Climate-Related Financial Disclosures (TCFD)” launched by the Financial Stability Board (FSB) in 2017, financial supervisory agencies around the world have gradually formulated climate risk management-related disclosure norms, including the “Climate Risk Financial Disclosure Guidelines for Domestic Banks” and “Climate Risk Financial Disclosure Guidelines for the Insurance Industry” issued by Taiwan’s Financial Supervisory Commission (FSC) in 2021. The TCFHC also follows the “comply or explain” principle when making financial disclosures. The summary of implementation results are as described.

(2)Stewardship Principles

2022

2021

2020

2019

Corporate governance is the first step to corporate sustainability and a key benchmark for measuring sustainable development. Sound corporate governance is embodied by the Board of Directors and the management operating in the context of the best interests of the company and stakeholders, providing effective oversight and assistance to the company's management and operations to achieve business goals. Meanwhile, it also encourages the company to utilize resources and become more efficient, thereby strengthening competitiveness of the company and wellbeing of the population as a whole.

TCS has a well-defined corporate structure and complies with governance related regulations including “Articles of Incorporation”, “Corporate Governance Best Practice Principles”, “Ethical Corporate Management Best Practice Principles”, and “Sustainability Best Practice Principles”, based on which the Board of Directors is entrusted with the highest authority in corporate governance to be responsible for sustainable development decisions on economic, social, and environmental aspects.

(1)Principles for Treating Customers Fairly

TCS have established policies and implementation regulations relating to Principles for Treating Customers Fairly and formulated relevant friendly financial service regulations and coordinated the implementations of relevant departments through a dedicated unit. These policies and regulations require all employees to fulfill ethical and fiduciary duties in product and service sales, advertising and soliciting, protection of the right to complain, and professionalism of salespersons and abide by the “Ethical Corporate Management Best Practice Principles,” “Financial Consumer Protection Act,” and “Financial Service Industry Principles for Treating Customers Fairly” to ensure that consumers are treated fairly and reasonably. We also require our financial consultants to sign the “Code of Behavior for Wealth Management Employees” before taking office or performing business to ensure the rights and interests of customers and improve customer satisfaction.

In order to implement the principle of friendly financial services, TCS regularly reviews and reports the reasons for the occurrence and handling methods of the cases involving messages left by seniors and disabled customers. TCS continues to for the public to ensure its products and services meet the needs of customers and protect financial consumers’ rights.

Meanwhile, in order to grasp the implementation status of the principle of treating customers fairly and improve accordingly, we regularly conduct employee education and training, internal assessments, activate mystery shoppers testing mechanism, and conduct annual credit audits on the financial consultants.

(2) Digital Financial

In response to the developmental trend of the digital economy, TCS utilizes the development trend of digital technology, combines financial technology innovation, attaches great importance to user design and customer experience, creates various financial services APP centered on customers, shapes more friendly financial products, and improves service efficiency, accessibility and usability and quality, to create professional stock affairs services that are not limited by time and place, to help customers keep abreast of stock dividend dynamics, and to achieve the greatest financial service benefits of digital applications.

 (3) Financial Inclusion Policy

In response to the sustainable development goals of the United Nations to promote financial inclusion and provide basic financial services to disadvantaged groups, the TCFHC Group adhere to the people-oriented concept to promote the well-being of the public, launching tailor-made financial products and services that meet the needs of all sectors of society or different ethnic groups. In order to implement financial inclusion and promote financial inclusion services, the Company has enacted “ Financial Inclusion Policy ” that applies to TCS.

To assist in achieving the United Nations Sustainable Development Goals (SDGs), TCS implements green operations and reduces the impact of its business activities on the environment in 6 areas, which are “Energy Conservation and Carbon Reduction”, “Water Resources Management”, “Fuel Management”, “Waste Management and Circular Economy, “Green Building”, and “Green Initiatives”.

 (1) Green Operations

GHG Emissions

To understand the GHG emissions of the whole company, TCS completed the “ISO 14064-1 Greenhouse gas (GHG) Inventory” verification in 2022 for 14 domestic offices, including categories 1 to 4 emissions. Additionally, TCFHC participates in the Carbon Disclosure Project (CDP) every year and has introduced the “ISO 50001 Energy Management Systems” and “ISO 14001 Environmental Management Systems” to reduce GHG emissions continuously.

In 2023, in addition to implementing the “ISO 14064-1 Greenhouse gas (GHG) Inventory” continuously at all domestic offices, TCS adopts corresponding reduction strategies based on its carbon reduction goals. This includes increasing the proportion of renewable energy, promoting the “ISO 50001 Energy Management Systems” and “ISO 14001 Environmental Management Systems” continuously, and implementing energy-saving and carbon reduction measures to implement green operations.

(2)Green Procurement and Supplier Management

For TCS, key suppliers are suppliers of IT equipment and systems. In support of the government’s green procurement policy, the Group makes sustainability an element in the procurement process, and encourages suppliers to implement sustainable management while working with suppliers to achieve environmental sustainability.

TCFHC continues to implement the “Supplier Management Policy”. TCS requires suppliers with a purchase of NT$1 million or higher to sign the “Undertaking on Supplier CSR and Environmental Sustainability Clauses,” and list the CSR provisions in procurement contracts to require explicitly that suppliers should comply with worker safety and health, environmental protection, and principal of integrity requirements. All these efforts are to enforce supplier management.

Sustainability Report

2022