ESG at CDF
The global environmental crisis is a challenge we are duty-bound to address. Our five sustainable management strategies represent not just a pledge but also essential goals we are committed to achieving.
Value Creation Model
Financial Capital
Input
Total Operating expense
NT$29.07 billion
Output
Financial Value
Net profit after tax (including non-controlling equity of NT$ 0.2 billion)
NT$16.39 billion
Consolidated ROE
6.5 %
Non-Financial Value
Constituent stock of DJSI(World, Emerging Markets) for the third consecutive year
Constituent stock of FTSE4Good Emerging Index and FTSE4Good TIP Taiwan ESG Index
Intellectual Capital
Input
KGI Life Fintech investment (or optimization)
NT$132.12 million
KGI Life i-Agent investment
NT$12.45 million
KGI Life subsidy for license certification examinations
NT$2.305 million
KGIB system research and development investment (including mobile banking, online banking, and the introduction of intelligent customer service platforms, and the new financial market trading systems, etc.)
NT$450 million
KGIS FinTech investment
NT$145 million
Output
Financial Value
KGI Life i-Agent utilization rate
85%
Utilization rate of KGI Life mobile insurance
98%
Average licenses of KGI Life employees
2.7
Average licenses of KGIB employees
5.8
Non-Financial Value
Video survival analysis
11,757 times
Human Capital
Input
Training expense
NT$45.433 million
Employee salary expense
NT$12.86 billion
Output
Financial Value
Human Capital Return on Investment (HC ROI)
5.09
Average training costs NT$ 4,873 (excluding field staff), up 48% compared with previous year.
Employee compensation was down 28.5% compared with previous year.
Non-Financial Value
Average training hours: 38.5 hours
Natural Capital
Input
Investment in energy saving and carbon reduction measures
NT$ 7,773,487
Investment in green procurement
NT$2,564,889
Output
Non-Financial Value
Awarded “Green Procurement Certificate” for 4 consecutive years
Awarded “Green Procurement Program for Private and Organizations” for 5 consecutive years
GHG emissions from category 1 and category 2 down 522.59 tCO2e compared with 2020.
Carbon reduction rate reached 2.37%.
Per capita energy consumption was 17.52GJ, down 7.42% compared with 2020.
Renewable energy consumption was 526.36 MWh.
Per capital water consumption density was 24.7 CBM, down 12.64% compared with 2020.
10.0%
Social Relation Capital
Input
Total public welfare expenditure (including time investment and in-kind donations)
NT$166.15 million
Employee volunteer time
77,660 hours
Promoted microinsurance, small-sum end-of-life insurance policies, and disability whole life comprehensive insurance that catered for the needs of the disabled – “Friendly Whole Life Insurance”
CDIB Capital Innovation Accelerator held 101 free innovation and entrepreneurship lectures, 12 one-day startup board meetings.
charitable trust funds
7
Output
Financial Value
“Give You A Hand” revolving credit: 164 people successfully applied, with a success rate 55%
“Taxi Driver” small-sum revolving credit: 83 people successfully applied, with a success rate 31%
“Quick Repayment”, a quota-based loan product: enabled amount
NT$785 million
Charitable trusts
NT$29.39 million
Non-Financial Value
Microinsurance serviced policyholders
92,631 people
Small-sum end-of-life policies
40,031
Disabled people were insured
19,382 people
Beneficiaries of public welfare activities
39,774 people
“Heritage 100 X Tutelage 100” social return on investment (SROI)
4.9%
Materiality
We highly value our stakeholders and ensure our sustainable management goals align with materiality assessments of their interests and concerns. We've documented the economic, environmental, social, and governance issues most pertinent to the eight major stakeholder groups we've identified. After thorough impact analysis of these issues, we've developed our corporate strategy, goals, and business plans, all transparently detailed in our CSR Report.
Stakeholder Identification
We annually review stakeholders' concerns to inform the ESG report and shape our sustainable development strategy. In 2021, the sustainability committee, senior management, and external experts were convened to assess global sustainable development trends, using the AA1000 Stakeholder Engagement Standards (AA1000SES) —Dependency, Responsibility, Tension, Influence, and Diverse Perspectives—as a framework. Our analysis drew on standards from global and regional industry leaders to identify eight major stakeholder categories, which we then presented to the Board of Directors for approval.
Material Issues Identification
Step 1
Identification
Stakeholder Groups
8
Stakeholder Groups
8 stakeholder groups were identified: Government and Competent Authorities, Investees, Clients, Shareholders and Investors, Employees, Media, Suppliers, Community
Material Topics
19
Material Topics
Labor protection and workplace inclusion and equality, corporate governance and ethical management, risk management, optimize service quality and customer relation management, customer private and personal data protection, sustainable operation, upgrade service convenience through digital finance, workplace safety and health, upgrade financial inclusion, competitive compensation and welfare, employment and training for diversity of talents, energy and resource consumption, ESG risk and opportunities in investment and financing, management of influence caused by social changes, maintain shareholders’ equity, social participation and supporting disadvantaged groups, waste management, supply co-prosperity sustainable development, and climate opportunities and business potential.
Step 2
Collection
Questionnaires
972
Questionnaires
To understand the views of all major stakeholders, CDF considered their proportional makeup and brought out a questionnaire on major issues that are of concern to such stakeholders, and analyzed the levels of their impact on their decisions and evaluation.
Internal Stakeholders
795
Internal Stakeholders
Internal Stakeholders Authorities, Investees, Clients, Shareholders and Investors, Employees, Media, Suppliers, and
External Stakeholders
177
External Stakeholders
External Stakeholders Authorities, Investees, Clients, Shareholders and Investors, Employees, Media, Suppliers, and
Step 3
Analysis
WORKING GROUPS (WGS) OF SUSTAINABILITY COMMITTEE
6
WORKING GROUPS (WGS) OF SUSTAINABILITY COMMITTEE
6 Working Groups (WGs) of Sustainability Committee: Corporate Governance, Social Philanthropy, Environmental Sustainability, Responsible Finance, Client Relations, and Employee Wellbeing
Step 4
Confirmation
key topics
11
key topics
Labor protection and workplace inclusion and equality, corporate governance and ethical management, risk management, optimize service quality and customer relation management, customer private and personal data protection, sustainable operation, upgrade service convenience through digital finance, workplace safety and health, upgrade financial inclusion, competitive compensation and welfare, and employment and training for diversity of talents.
Material Issues Matrix
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Environmental
We have made environmental protection and sustainable development our major mission and consistently uphold our responsibility to address these issues.