ESG in CDF
Our five sustainable business strategies reflect our focus on social responsibilities and the goals that we must achieve.
Value Creation Model
Financial Capital
Input
Total consolidated assets
NT$3.5 trillion
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
Ranked in the Top 6-20% of the 8th Corporate Governance Evaluation of TWSE/TPEx listed companies
CL, CDIB, KGIB, KGIS and KGI SITE signed the “Stewardship Principles” of TWSE
Intellectual Capital
Input
CL Fintech investment (or optimization)
NT$132.12 million
CL i-Agent investment
NT$12.45 million
CL 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
CL i-Agent utilization rate
85%
Utilization rate of CL mobile insurance
98%
Average licenses of CL employees
2.7
Average licenses of KGIB employees
5.8
KGIS adopted the patented conference electronic signature technology to launch the first “adjustment to transaction limit of Taiwan stocks via video” service in the industry.
KGIS launched the first wealth management account online subscription of ETF IPO
Non-Financial Value
Video survival analysis
11,757 times
Introduction of “RPA Process Robots” reduced manual work: improved work efficiency by
73%
Human Capital
Input
Training expense
NT$45.433 million
Employee salary expense
NT$12.86 billion
KGIS employee training fees during the year reached
NT$17.27 million
Output
Financial Value
Human Capital Return on Investment (HC ROI)
5.09
Average training costs NT$ 4,873 (excluding field staff), up 48% compared with previous year.
Employee compensation was down 28.5% compared with previous year.
Total training hours of KGIS employees reached 101,061 hours and the average employee training hours were 32.8 hours.
Non-Financial Value
Constituent stock of Taiwan High Compensation 100 Index for 8 consecutive years
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
CDF emphasizes on stakeholders' expectations by incorporating issues they consider important into CDF’s goal of business sustainability. Before compiling the CSR report, we have identified the top 8 stakeholder groups and collected related issues of economic, environmental, social, and governance of which our stakeholders may concern about and their impacts on the company's sustainable management. We have constructed corporate strategies, business objectives and annual plans based on the material issues and presented in the CSR Report.
Stakeholder Identification
CDF regularly reviews the focus of stakeholders every year to prepare the ESG Report and sustainable development plan. In 2022, CDF analyzed the trend of international sustainable development according to the AA1000 Stakeholder Engagement Standard (AA1000SES), with the five principles of Responsibility, Influence, Tension, Diverse Perspectives, and Dependency, in addition to taking reference from domestic and foreign leaders in the industry to identify CDF’s 8 major stakeholders (including shareholders and investors, employees, clients, community, investees, suppliers, government and competence, and media), and incorporated the opinions of stakeholders to develop sustainable action plans, and prepared the ESG Report.
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
Next
Environmental
We have included environmental protection and sustainable development as our major mission since 2008. In 2021, we have become the industry s leader in ESG