CDF’s corporate governance has again been recognized by its selection as a constituent of the FTSE4Good Emerging Index in 2018, demonstrating its stellar results in fulfilling corporate social responsibility and corporate citizenship, while making itself into a benchmark company on par with international peers.
The FTSE4Good Index is a key index for socially responsible investing, and constituents must pass a variety of checks, including environmental, social, and governance (ESG). CDF has once again been included this year, earning a significantly higher overall ESG score than in previous years, and full credit on environmental standards. In addition to energy conservation and carbon emission reductions, CDF’s efforts in developing green finance to promote the transformation and sustainable development of Taiwan’s green energy industry were noteworthy. Actual results by subsidiaries include: KGI Bank being among the first Taiwanese financial institutions to issue a green bond, placing NT$1.0bn in green bonds in 2017, with 12.8% growth in green loans extension; the balance of CDIB Capital’s investments in green industries increased 5.3%; KGI Securities led underwriting of all three green corporate bonds in Taiwan in 2017, raising a combined fund of NT$14.1bn.
CDF notes sustainability related topics have been emphasized in many fields over recent years. When making an investment decision, investors not only consider traditional indicators like financial data, but also measure investment targets by the three ESG factors, hoping to gain competitive and stable financial returns, as well as create a positive social impact. This will in turn encourage and propel the investment target’s CSR performance, leading to a win-win situation.
CDF states strengthening corporate governance has been a top priority within the four pillars of the company – insurance, banking, securities, and venture capital/private equity – since they were formed. Sustainable development is also one of CDF’s core values and an operations focus, as the firm aggressively executes practices supporting international initiatives, such as the United Nations’ Principles for Responsible Investment (PRI), sustainable management characterized by transparency and openness, long-standing concern for the greater society, and promoting energy conservation and carbon reduction.