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$35.02 billion
Output
Financial Value
Consolidated net profit, including NT$12.06 billion from non-controlling equity
NT$47.10 billion
Consolidated ROE
15.1 %
Non-Financial Value
Constituent stock of DJSI(World, Emerging Markets) for the second consecutive year
Constituent stock of FTSE4Good Emerging Index and FTSE4Good TIP Taiwan ESG Index
Ranked in the Top 6-20% of the 7th 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$176.23 million
CL i-Agent investment
NT$11.25 million
CL subsidy for license certification examinations
NT$2.892 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$230 million
KGIS FinTech investment
NT$200 million
Output
Financial Value
CL i-Agent utilization rate
86%
Utilization rate of mobile insurance
97%
Average licenses of CL employees
2.6
Average licenses of KGIB employees
5.35
Built the fifth-generation “DMA-Speedy trading system” for customers to use the Company’s low-latency and high-frequency trading system: average monthly trading volume increase
18%
Non-Financial Value
Video survival analysis
7742 times
Introduction of “RPA Process Robots” reduced manual work: improved work efficiency by
70%
Human Capital
Input
Training expense
NT$44.617 million
Employee salary expense
NT$17.99 billion
Output
Financial Value
Human Capital Return on Investment (HC ROI)
9.64
Average training costs NT$3,285.6 (excluding field staff), a 6.8% increase from the previous year
Employee compensation: a 24.6% increase from the previous year
Non-Financial Value
Constituent stock of Taiwan High Compensation 100 Index for 8 consecutive years
Average training hours: 76.31 hours
Natural Capital
Input
Green procurement
NT$180 million
Received ISO 14001, ISO 50001 third-party certification, and domestic ISO 14064-1 100% inventory and verification
Social Relation Capital
Input
Total public welfare expenditure (including time investment and in-kind donations)
NT$150.77 million
Employee volunteer time
44,471 hours
Promoted microinsurance, small-sum end-of-life insurance policies, and disability whole life comprehensive insurance that catered for the needs of the disabled – “Friendly Whole Life Insurance”
Micro insurance
33,178 policyholders
Small-amount life-insurance
27,032 policyholders
Output
Financial Value
“Give You A Hand” revolving credit: 318people successfully applied, with a success rate 58%
“Taxi Driver” small-sum revolving credit: 168 people successfully applied, with a success rate 35%
“Quick Repayment”, a quota-based loan product: enabled amount
NT$ 286 million
Charitable trusts
NT$29.02 million
Non-Financial Value
Microinsurance serviced policyholders
60,783 people
Small-sum end-of-life policies
31,114
Disabled people were insured
16,315 people
Beneficiaries of public welfare activities
27,634 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 ESG Report and the sustainable development plan. In 2021, we invited members of WG under the Sustainability Committee, senior executives and specific external stakeholders, to analyze 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, and refer to domestic and foreign leaders in the industry. After discussion by the participating members, the Board approved 8 major stakeholders. The term “invester” was amended to “investee” in order to accurately express the Company’s attention to the investee’s concern.
Material Issues Identification
Based on AA1000 Stakeholder Engagement Standards. CDF invited 34 CSR committee members and senior executives to identify stakeholders by five criteria responsbilities
Step 1
Identification
Stakeholder Groups
8
Stakeholder Groups
8 stakeholder groups were identified: Government and Competent Authorities, Investees, Clients, Shareholders /Investors, Employees, Media, Suppliers, Community
Material Issues
18
Material Issues
Information and Cyber Security, Risk Management, Corporate Governance and Ethical Management, Operational Performance, Customer Privacy and Protection, Service Quality and Customer Relationship Management, Sustainable Finance, Digital Finance and Innovation, Society Issue Response Strategies, Talent Attraction and Retention, Talent Training and Development, Occupational Health and Safety, Financial inclusion, Green Operation, Climate Change Response Strategies, Human Rights, Social Participation, Sustainable Supply Chain Management
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, Financial Responsibility, Client Relations, and Employee Well-Being
Step 4
Confirmation
Material Issues With High Impacts
5
Material Issues With High Impacts
Corporate Governance and Ethical Management, Information and Cyber Security, Risk Management, Business Performance, Customer Privacy and Protection
Material Issues Matrix
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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