China Development Financial (hereinafter CDF, TWSE: 2883) announced that it had been ranked among the top 5% tier in the sixth (2019) Corporate Governance Evaluation carried out by the Taiwan Stock Exchange (TWSE). Daw-yi Hsu, the Acting President of CDF represented the group to receive the accolade. “The award embodies the result of years of hard work that dedicates to the pursuit of better corporate governance and sustainable development, which have become an integral corporate business culture across the Group,” said Hsu.
The criteria of Corporate Governance Evaluation consist of four major pillars, including ensuring shareholders’ rights and interests as well as fair treatment for shareholders, strengthening the function of the board of directors, information transparency and implementation of corporate social responsibilities. CDF has incorporated these criteria into its governance efforts and it was ranked among the top 5% tier in the 3rd (2016) and 6th (2019) evaluation respectively.
CDF appointed a Company Secretary of corporate governance in 2019. Moreover, to diversify the backgrounds of its board of directors, CDF appoints female directors who account for 22% of all the seats. The Company also establishes an Ethical Corporate Management Committee that regularly reports to the board and discloses its implementation status. An Information Security Department was established to build a framework for the management of information security risks. The Company also passed the requirements set forth in the ISO 27001:2013 Standards on Information Security Management System (ISMS).
CDF have prioritized stakeholder identification and engagement and the progress have been on the agenda of the board. In terms of employee relations, KGI Bank, a subsidiary of CDF, signed a collective agreement with the labor union, through which the Bank strengthens its daily operation thanks to the robust employer-employee relations and thus create win-win for shareholders, employer and employees.
CDF continues to pursue the goal of corporate governance and sustainable management through investing in the following five capitals, financial, intellectual, human, natural, and social relationships. The Company has implemented five core CSR strategies, including facilitating sustainable governance, driving sustainable finance, cultivating sustainable talent, fostering sustainable environment, and sharing sustainable values.
CDF Group is also a pioneer to become a signatory party of TWSE’s “Stewardship Principles for Institutional Investors” ahead of their competitors. The venture capital/private equity arm, CDIB Capital Group further formulated a Responsible Investment Policy, which incorporates ESG (environment, social and governance) into the investment analysis and decision-making processes. CDIB Capital Group has also outlined its business strategy under the pillars of overseas expansion and accelerating globalization that add future growth momentum.
Through aligning the interest of the Company, shareholders, customers and social groups, CDF regards good corporate governance as an inevitable element to business operation efficiency and competitiveness, as well as a mechanism for stewardship and resources optimization.
At the 2019 Taiwan Corporate Sustainability Awards (TCSA), CDF emerged as a big winner, being awarded the “Growth Through Innovation”, “Social Inclusion”, and “Climate Leadership” honors, which is the evidence of the significant resources and efforts CDF has channeled into incubation of innovation, all-inclusive finance, and green finance. Other accolades CDF has won include the Corporate Comprehensive Performance Award and Corporate Sustainability Report Award (Gold).
CDF has long been an advocate of social philanthropy. China Life, KGI Bank, KGI Securities and CDIB Capital Group have all engaged in CSR campaigns that give back to the society. Furthermore, both of the China Development Foundation and KGI Charity Foundation have sponsored a variety of projects, such as the “The Flying Elephant in Our Class” scholarship (for students with special talents, such as arts), “Vocational Education Scholarship” and “Nutrition 100” (school lunch subsidy program) to narrow the gap between the rural and urban areas as well as exert the Group’s corporate social impact.
