Environmental
We have set up teams and goals to ensure environmental protection and commit to create an environmental awareness with a view to becoming a sustainable benchmark for other Taiwanese companies.
Environmental Management System
China Development Financial (CDF) has passed the annual reviews for ISO 14001 (Environmental Management System) and ISO 50001 (Energy Management System) certified by SGS in October 2020 . The coverage rate of ISO 14064-1 (Greenhouse Gas Inventory) self-inspection and verification is 99.27%, except for 9 buildings, 72 branches of KGI Securities, 3 branches of KGI Futures, 51 branches of KGI Bank and 8 branches of China Life.
Milestones
2008 - 2021
Signed up TCFD (Task Force in Climate-related Financial Disclosures)
INSTALLED PV SYSTEMS IN THE NEW HEADQUARTERS AND BEIMEN BRANCH
CONSTITUENT OF BOTH DJSI WORLD AND DJSI EMERGING MARKETS
New headquarters building obtains the EEWH Green Building Gold Certificate. CDF is included in the DJSI - World Index and Emerging Markets Index, and takes the 4th place in the global insurance industry.
Responsible Procurement
Responsible Procurement (green purchasing) Policy
ASSESS THE ACTUALl NEEDS
A thorough needs analysis involving the relevant stakeholders will help define the scope for greening the contract as well as avoiding unnecessary purchases.
GREEN PROCUREMENT PRINCIPLES
Prioritize the purchase of low-pollution, low-energy-consumption, recyclable, and environmentally-labeled equipment or products, and avoid the purchase of disposable items.
LOCAL SOURCING PRINCIPLES
In order to reduce unnecessary losses and resource consumption caused by the product transportation process, and promote the local economic development, CDF actively purchases from local enterprises in Taiwan.
STEP 1 Target
With the goal of increasing the amount of green purchases in 2019 ($131.11 million) by 3%, the target has been successfully achieved.
STEP 2 Project
1.Green procurement of necessary items
Server, PC, NB, screen and other equipment that fully adopted Energy Star or green environmental label.
Used FSC certified environmentally friendly paper for printing business cards and annual reports, and purchased FSC or PEFC certified paper for photocopying.
Rented photocopiers and their toner cartridges of various colors, and drum cartridges, and purchased printer toner cartridges with green environmental label.
2.Priority projects for green procurement
Leasing vehicles with green environmental label, and products with carbon reduction label for services
Green building materials and water-saving labels for decoration projects
Equipment or electrical appliances with green environmental protection label, energy saving label or energy star
STEP 3 Performance
  • In 2021, Green procurement amounted to NT$ 180.26 Million. Received the “Green Procurement Certificate” issued by EPA for 3 consecutive years, and the “Green Procurement Program for Private and Organizations” issued by the Taipei City Department of Environmental Protection for 4 consecutive years
  • The National Green Life Information Platform responds to green office, which is approved by the Environmental Protection Administration in May 17, 2021, and will be expired in May 17, 2024
  • In 2021, the evaluation score of “Corporate Commitment”, a related indicator of the “CommonWealth ESG Award”, has increased for three consecutive years
STEP 1 Target

Maintain the proportion of local suppliers above 80%

STEP 2 Project

Since 2016, the proportion of procurement amount of local suppliers has been counted, and in 2017, the proportion of procurement amount of local suppliers should reach more than 80%.

STEP 3 Performance

Formulated a "Supplier Guidelines to Sustainability." Local purchases with supplier due diligence reached 98.4% in total amount spent.

STEP 1 Target
Added filter for suppliers
STEP 2 Project

When adding new suppliers, in addition to considering their professional quality and performance, CDF will also check whether they have records of environmental hazards or labor penalties.

STEP 3 Performance
In 2021, all the 151 new suppliers have 100% completed supplier assessment and signed the “Letter of Undertaking regarding Supplier Corporate Social Responsibility”, and the major suppliers had no environmental penalty records throughout the year, and the labor penalty record was about 8.9%
STEP 1 Target
Consider alternatives which offer reusability and durability to minimize environmental impact.
STEP 2 Project
  1. Prerequisites
    • Purchase Energy Star or eco-label certified servers, PCs, NBs, and monitors.
    • Purchase FSC and PEFC-certified photocopy paper only.
    • Use eco-label certified leased printers and toner cartridges, drum units, and purchased printers and toner cartridges only.
  2. Priorities
    • Rent eco-label certified corporate vehicles and prioritize low-carbon-labeled products.
    • Prioritize eco-friendly and water-saving building materials for construction projects.
    • Prioritize energy-saving or eco-label or Energy Star certified equipment and electrical equipment.
STEP 3 Performance
  • CDF and China Life Insurance were selected by the Department of Environmental Protection, Taipei City Government as "the top private firm and group in green procurement" for a third and fifth consecutive year, respectively, in 2020.
  • CDF and China Life Insurance were selected by the Environmental Protection Administration, Executive Yuan as "the top private firm and group in green procurement in 2019" for a second consecutive year and the first year, respectively, in 2020.
  • The Group increased the amount of green procurement to NT$188.55 million in 2020, a 43.8% increase vs. 2019. Of the total green procurement, NT$83.73 million was granted a total of 20 eco-labels by the Environmental Protection Administration.
STEP 1 Target
Percentage of local suppliers at and above 80%
STEP 2 Project
We have begun calculating the percentage of the Group’s locally-sourced suppliers since 2016 and set the rule of having to conduct 80% or higher of procurement with local suppliers in 2017
STEP 3 Performance
Achieved the percentage of procurement from local suppliers at 84.56%
STEP 1 Target
Extended scope of green procurement
STEP 2 Project
Expand the scope of green procurement within the Group and include the suppliers' business operations in the GHG emission inventory
STEP 3 Performance
In 2020, the scope of green procurement extended from CDF and major subsidiaries (CDIB Capital Group, KGI Bank, KGI Securities, and China Life Insurance) to China Development Asset Management Corporation (subsidiary) and CDIB Capital Management Corporation, CDC Finance & Leasing Corporation, KGI Futures, KGI Securities Investment Trust, and KGI Securities Investment Advisory (sub-subsidiaries); in addition, carbon emissions from the suppliers' business operations such as the delivery of photocopy paper and printer repair and maintenance services were also included in the inventory (totaling 7.78 metric tons of CO2e in 2020).
STEP 1 Target
Supplier screening (excluding China Life Insurance)
STEP 2 Project
Check on the records of environmental hazards or penalties for labor violations of new suppliers in addition to their professionalism and achievements
STEP 3 Performance
In 2019, the Group had 60 new suppliers, and no record of environmental hazards was found on verification; one supplier had a record of penalties for minor violation of Paragraph 1, Article 32 of Labor Standards Act.
STEP 1 Target
3% increase in total green procurement (NT$81.05 million) in comparison to 2018
STEP 2 Project

1. Rent eco-label certified corporate vehicles and prioritize low-carbon-labeled products

2. Prioritize eco-friendly and water-saving building materials for construction projects

3. Prioritize energy-saving or eco-label or Energy Star-certified equipment and electrical equipment

STEP 3 Performance

1. In 2019, the Group received the green procurement award from the Environmental Protection Administration for achievements in 2018 and the green procurement award from the Department of Environmental Protection, Taipei City Government, for achievements in 2019.

2. The Group increased the amount of green procurement to NT$131.11 million in 2019, a 61.8% increase in comparison to 2018. Of the total green procurement, NT$102.76 million (78.4%) received 20 environmental labels from the Environmental Protection Administration.

 


STEP 1 Target
Continue to use local suppliers
STEP 2 Project
We have begun calculating the percentage of the Group’s locally-sourced suppliers since 2016 and set the rule of having to conduct 80% or higher of procurement with local suppliers in 2017.
STEP 3 Performance
Ratio of procurement from local suppliers hit 97.8%(including China Life Insurance)
STEP 1 Target
Expand the coverage of the Supplier CSR Commitment Letter
STEP 2 Project
New suppliers with procurement value of over NT$200,000 are now required to sign CSR Commitment Letter
STEP 3 Performance
100% of the 185 key suppliers and new suppliers with procurement values over NT$200,000 have signed the CSR Commitment Letter
STEP 1 Target
Increase the Green Procurement
STEP 2 Project
3% increase on green procurement
STEP 3 Performance
  • Green procurement increased to NT$54.07mn, up 5.6% YoY
  • Received the Green Procurement Award by Department of Environmental Protection of Taipei City Government
STEP 1 Target
Continue to use local suppliers
STEP 2 Project
We have begun calculating the percentage of the Group’s locally-sourced suppliers since 2016 and set the rule of having to conduct 80% or higher of procurement with local suppliers in 2017.
STEP 3 Performance
Ratio of procurement from local suppliers hit 97.8%(including China Life Insurance)
Supplier Management

Supplier Management

The Group has continued to strengthen the coverage of procurement internal control operations and external supplier management, formulated the "Key Points for the Implementation of Suppliers' Corporate Social Responsibility", and continued to enhance supplier management measures, through measures such as prior screening, performance management, on-site audit, supplier annual evaluation and annual self-assessment, irregular handling of supplier corporate responsibility advocacy and annual praise of excellent suppliers, etc., based on the professional quality of suppliers and licenses/certificates, actual performance, friendly environment, supplier human rights issues and climate change... And invite them to sign the "Supplier Corporate Social Responsibility Commitment", agree to comply with the relevant provisions of labor rights and human rights (including the prohibition of child labor), labor health and occupational safety and health, environmental protection and integrity management ethics, etc., so as to promote the balance and sustainable development of the economy, society and the environment.

In accordance with the requirements of the contract, we will supervise and manage to avoid significant negative impacts on the environment and society, and fulfill our corporate social responsibility. If there is a violation that has a significant impact on environmental, social and labor human rights, etc., and the improvement is not improved or incomplete after the deadline for improvement, the Group may terminate or terminate its contract, fine or suspension at any time, and if the circumstances are serious, and be removed from the list of qualified suppliers, etc., In 2020, all suppliers subject to environmental and/or labor hazard penalties have completed improvements, and none of the 68 suppliers evaluated in 2021 have been subject to new penalties or suspensions by the Company。

 

In 2021, for the first time, the "Supplier Labor Human Rights Due Diligence" (1-5 points, 5 points represent the highest risk value) was conducted for major suppliers, and the overall risk value of 1.06 was extremely low risk, and the human rights risk of suppliers was extremely low, and there were no significant disadvantaged groups in the survey results.

The newly revised Supplier Sustainability Code of Conduct, covering sustainable issues such as labor human rights, environmental sustainability, integrity management, occupational health, etc., has been announced on the company's official website and announced the company's policies and concepts by e-mail. For 279 major suppliers, the supplier ESG self-assessment (1-5 points, the highest score of 5), and prioritized human rights issues, highlighting the importance the company attaches to human rights issues.
As of 2021, the proportion of major local suppliers signing letters of commitment will remain 100% from 2017 to 2021, and the proportion of new suppliers signing commitments will also remain 100% from 2018 to 2021.

Next
Giving Back To Society
Whether it is charity programs, emergency aid, industry-academia cooperation, or talent cultivation, the core we focus on most will never change: the positive driving force that education brings to society.