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$3.4 trillion
Operating expense
NT$1.32 billion
Output
Financial Value
Consolidated net profit, including NT$8.027 billion from non-controlling equity
NT$20.57 billion
Consolidated ROE
6.40%
Non-Financial Value
Selected for the first time as a constituent stock of DJSI World & DJSI Emerging Markets
Selected over four consecutive years as a constituent stock of FTSE4Good Emerging Index & FTSE4Good TIP Taiwan ESG Index
Ranked in the top 5% of TWSE/TPEx listed companies in the 6th Corporate Governance Evaluation Awards
China Life Insurance, CDIB Capital Group, KGI Bank, KGI Securities and KGI SITE have become the signatories of the "Stewardship Principles" of TWSE
Intellectual Capital
Input
China Life’s Fintech investment (or optimization)
NT$201.57 million
China Life’s i-Agent investment
NT$42.09 million
China Life’s subsidy for license certification examinations
NT$3 million
KGI Bank’s system development investment (including active dialing system construction, mobile wealth management system construction, mobile banking APP innovation projects, credit-card core system construction, product and service digitization projects, and smart process projects)
NT$400 million
KGI Securities’ information services and FinTech investment
NT$27.37 million
Output
Financial Value
5 licenses owned by every employee of KGI Bank on an average
i-Agent usage
92%
10,384 asset appraisal reports via ASA, a new wealth management system
Increase of NT$173.426 billion in the annual trading volume via newly established “Securities High Frequency Trading GW”
Non-Financial Value
Video survival analysis
3,338 times
Over 89,000 clients having activated mobile banking login via face recognition/fingerprint/graphics
Establishment of “Mobile Trading Platform” for improved core competitiveness
Human Capital
Input
Training expense
NT$88.81 mn
Employee salary expense
NT$18,249 mn
Output
Financial Value
HC ROI(Human Capital Return on Investment)
12.21
Average employee training expense of NT$8,664 (excluding field staff), a 24.5% increase from 2019
Average employee salary expense of NT$1,427 thousand, a 4% increase over 2019
Non-Financial Value
Selected as component stock of TWSE RAFI® Taiwan High Compensation 100 Index by TWSE for 7 consecutive years
Average training hours per employee: 75.9, a 2.8% increase from the previous year
Employee satisfaction rate
89%
Natural Capital
Input
Green-procurement amount (a 43.8% increase from 2019)
NT$188.55 mn
Environmental-protection expense
NT$56.95 mn
Third-party certification of ISO 14001 Environmental Management System and ISO 50001 Energy Management System and an expanded scope of ISO 14061-1 GHG Inventory
Output
Financial Value
The Environmental Protection Administration selected CDF for a second consecutive year and China Life for the first time as a "top firm in promotion of green procurement by private enterprises and groups in 2020"
34 solar power certificates for 34,000 kWh of green electricity
Non-Financial Value
GHG emissions reduced: 952.14 metric tons CO2e, or 105.3%, from 2016
Annual power saved (a 103% decrease)
690,000 kWh
Water consumption reduced
1.6% YOY
Total waste reduced by
23.5%
Social Relation Capital
Input
Total public welfare expenditure
NT$172,701,543
Number of volunteer employees: 5,016; number of volunteer hours
35,541
Micro-insurance and small-amount life-insurance policies
Micro insurance
33,178 policyholders
Small-amount life-insurance
27,032 policyholders
84 free start-up seminars at CDIB Capital Innovation Accelerator, 15 one-day startup board meetings (Start-up Mentor Project) and 2 start-up workshops
Trustee for 8 charitable trusts
Output
Financial Value
Giving You A Hand—Revolving Personal Loan Promotion Project: 485 out of 811 applications approved (approval rate: 60%)
Taxi Driver's Small Revolving Loan: 217 out of 505 applications approved (approval rate: 43%)
Loan applications through mobile phone numbers/"Quick Repayment" Revolving Loan/"Taiwan Star Telecom" Revolving Loan Project: NT$250 million approved
Charitable trusts: entrusted amount
NT$30mn
Non-Financial Value
Success rate in the number of micro-insurance policyholders
Nearly 174.6%
Accumulated number of small-amount life-insurance policyholders
More than 27,000
Investment in 18 start-up
Revenue generated for social welfare organizations (including eco-friendly small farmers and social enterprises)
Nearly NT$4 mn
Social return on investment (SROI) of the Heritage 100 X Tutelage 100 programs
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
Based on AA1000 Stakeholder Engagement Standard, CDF invited 34 CSR committee members and senior executives to identify stakeholders by five criteria: responsibilities, influence, tension, diverse perspectives and dependency. Eight stakeholder groups were identified: government and competent authorities, investees, clients, shareholders and investors, employees, media, suppliers, and community. Material issues were collected, analyzed and identified.
Material Issues Identification
Based on AA1000 Stakeholder Engagement Standard, CDF invited 34 CSR committee members and senior executives to identify stakeholders by five criteria: responsibilities.
Step 1
Identification
Stakeholder Groups
8
Stakeholder Groups
Based on AA1000 Stakeholder Engagement Standard, CDF invited 33 CSR committee members and senior executives to identify stakeholders by five criteria: responsibilities, influence, tension, diverse perspectives and dependency. Eight stakeholder groups were identified: government and competent authorities, investees, clients, shareholders and investors, employees, media, suppliers, and community. Material issues were collected, analyzed and identified.
Material Issues
22
Material Issues
22 material issues were raised on the basis of the global trend of sustainability development, CSR regulations, international standards (DJSI, CDP, TCFD), current domestic and foreign industrial situations and our business objectives. 22 Material Issues: Anti-money laundering and countering the financing of terrorism, Principles for fair treatment of Customers, Green operation, Green procurement, Human rights, equality, and diversity, Labor-management communication, Service quality and customer relationship management, Compliance, Operating performance, Sustainable finance, Protection of Customer Privacy and Personal information, Occupational health and safety, Climate strategies, Financial Inclusion, Social Change Strategies, Corporate governance and ethical corporate management, Information Security and Cybersecurity, Risk management, Digital finance and innovations, Remuneration and talent Development, Social engagement, Sustainable supply chain management
Step 2
Collection
Questionnaires
138
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. At the same time, senior executives of CDF evaluated the importance of each sustainability issue to business operation; the employees and managers of CDF also identified the impact of each sustainability issue across the enterprise value chain on the economy, environment, and society. A total of 138 questionnaires were received in 2020.
Internal Stakeholders
38
Internal Stakeholders
Internal Stakeholders Authorities, Investees, Clients, Shareholders and Investors, Employees, Media, Suppliers, and
External Stakeholders
100
External Stakeholders
External Stakeholders Authorities, Investees, Clients, Shareholders and Investors, Employees, Media, Suppliers, and
Step 3
Analysis
Working Groups (WGs) of CSR Committee
6
Working Groups (WGs) of CSR Committee
Based on the material issues identified by leading insurance companies at home and abroad, material issues were divided into primary, secondary, and basic issues; they were further prioritized in comparison with the material issues identified by CDF in 2020 and in line with the sustainability trends in 2021. 6 Working Groups (WGs) of CSR Committee: Corporate Governance, Social Philanthropy, Environmental, Financial Responsibility, Client Relations, and Employee Well-Being
Step 4
Confirmation
Material Issues With High Impacts
9
Material Issues With High Impacts
The material issue matrix for 2020 was formed after systematic analysis and submitted to the CSR Committee. Following discussions and confirmation by senior executives and approval by the Board of Directors, nine material issues that have impact on stakeholders, corporate business sustainability, economy, environment and society were selected as the basis for developing corporate strategies, business objectives and annual plans, which are presented in the 2020 CSR Report. 9 Material issues with high impacts: Corporate governance and ethical corporate management, Information Security and Cybersecurity, Risk management, Digital finance and innovations, Service quality and customer relationship management, Compliance, Business performance, Sustainable finance, Protection of Customer Privacy and Personal information
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