Loading

Chairman’s Message

Together We will Usher in the Era of Transformation

In 2019, CDF adopted five main ESG strategies, namely, Corporate Governance, Intelligent Finance, Elite Talent Development, Low-Carbon Economy, and Co-Creation of Society. Thanks to the hard work of all its employees, CDF’s four major businesses---commercial banking, securities, capital, and life insurance---delivered synergistic results, with a consolidated profit of NT$12.850 billion after taxes, earnings per share (EPS) of NT$0.88, and a 64% increase in profit, which is a new high over the last 13 years. At the end of 2019, the net worth per share also increased to NT$12.86. As the coronavirus (COVID-19) pandemic continues to rage in 2020, the government's early preparations, private enterprises' anti-epidemic efforts, and increased awareness of public health among people have gained global admiration because of Taiwan's tenacity to fight the epidemic. CDF has devoted itself to encouraging the biomedical industry. One of its subsidiaries, CDIB Capital Group, established the CDIB Yida Biomedical Private Equity (Kunshan) Enterprise toward the end of 2019 to upgrade and transform the biomedical industry in Taiwan and China to introduce Taiwan's advanced medical technology to China, to facilitate the upgradation and transformation of Chinese pharmaceutical companies, and to advance the interests of Taiwanese and Chinese enterprises in global markets.

We have kept abreast of developments in sustainable management. In international sustainability performance, CDF was selected as a constituent of both FTSE4Good Emerging Market Index and FTSE4Good TIP Taiwan ESG Index for the third year in a row. We also participated in the Dow Jones Sustainability Index (DJSI) evaluation, and both the total score and the percentage (an increase of 16%) improved in 2019. In domestic sustainability performance, CDF won the CommonWealth Magazine Corporate Citizen Award for the second year in a row. We also earned the Corporate Comprehensive Performance Award, Top 50 Corporate Sustainability Report Awards (Gold), and Best Performance of Specific Category--Social Inclusion Award, Climate Leadership Award, and Growth through Innovation Award from the 2019 Taiwan Corporate Sustainability Awards (TCSA). In addition, CDF received the 2019 Buying Power, a social innovation product and service procurement award.

In corporate governance, to strengthen ethical corporate management, CDF established the Ethical Corporate Management Committee in September 2019 to formulate and supervise its ethical corporate management policy and prevention programs. In January 2020, all our directors and executives signed the "Statement of Compliance with the Ethical Corporate Management Policy." In 2019, all our employees received online training on "Ethical Corporate Management Best Practice Principles" and signed a statement on compliance with Ethical Corporate Management Best Practice Principles online at the conclusion of training.

Regarding environment, CDF and its subsidiaries have long supported the "Earth Hour" initiated by the World Wildlife Fund for Nature by turning off lights for an hour. In 2020, we wish to expand it by inviting all our employees and partners to turn off the lights for an hour, at work or at home. CDF has supported the world's largest environmental movement for six consecutive years, calling on people to pay serious attention to climate change and global warming issues.

In social inclusion, CDF's subsidiary, KGI Bank Telecom, introduced mobile ID authentication to customers without credit records for financial inclusion. This was the Taiwan's first FinTech regulatory sandbox experiment project among domestic banks. Additionally, CDF has organized the annual charity day & senior employee appreciation for ten consecutive years. In 2019, 12 social enterprises, social welfare institutions, and small farmers across Taiwan set up counters to offer their products to our employees. The purposes of this event were to appreciate the contributions made by senior employees, to retain them, and to fulfill corporate social responsibility together with all employees.

In response to the coronavirus pandemic, CDF and its subsidiaries, including KGI Bank, KGI Securities, and China Life Insurance, have provided digital wealth management services ranging from online loan applications and trade orders to policyholder care to fight the epidemic along with customers. China Life Insurance also takes the lead to pay tribute to the frontline medical staff by granting an amount of NT$50,000 daily toward inpatient allowance, if a medical staff member is a policyholder and is diagnosed with coronavirus, while preventing the spread of the epidemic or offering treatment at a medical institution.

In the future, CDF will continue to promote corporate governance and sustainability, incorporate components of ESG into investment analysis and decision-making, and integrate our core competencies to achieve the United Nations' Sustainable Development Goals (SDGs). At the same time, global corporate expansion and globalization will be our business strategies to further drive our business growth.

2019 ESG Performance

Corporate Governance

  • Both CDF and China Life Insurance were selected as a constituent of FTSE4Good Emerging Market Index and FTSE4Good TIP Taiwan ESG Index for three consecutive years
  • CDF ranked in top 5% of TWSE/TPEx listed companies in the 6th Corporate Governance Evaluation Awards
  • China Life Insurance ranked the third in the Best Report Award in the Corporate Register Reporting Awards (CRRA), the only financial institution in the world and the first Taiwanese company to win this award; ranked in the top 5% of TWSE/TPEx listed companies in the Corporate Governance Evaluation Awards for five consecutive years
  • Selected as a constituent of TWSE Corporate Governance 100 Index by TWSE, and of both TWSE RAFI® Taiwan High Compensation 100 Index and TWSE RA Taiwan Employment Creation 99 Index for six consecutive years
  • Both CDF and China Life Insurance won the Corporate Comprehensive Performance Award and Corporate Sustainability Report Award in the 2019 Taiwan Corporate Sustainability Awards; China Life Insurance won the Transparency and Integrity Award additionally
  • CDF won the CommonWealth Magazine Corporate Citizen Award for two consecutive years
  • CDF established the Ethical Corporate Management Committee and subjected the Risk Management Committee to the Board of Directors

Social

  • Both CDF and China Life Insurance won the Social Inclusion Award in the 2019 Taiwan Corporate Sustainability Awards; China Life Insurance won the Growth through Innovation Award additionally
  • Both CDF and China Life Insurance won the 2019 Buying Power - Social Innovation Product and Service Procurement Award
  • CDF won the first place in Best FinTech under FinTech Innovative Application Award in the Taiwan Financial Award; KGI Securities won the second place in both Best Securities Firm Image and Best Securities Firm Services under Consumer Finance Brand Award in the Taiwan Financial Award
  • Social Return On Investment (SROI) for "Heritage 100 & Tutelage 100" Project: 4.9
  • Achievement rate of micro insurance policyholders: 130%; number of small-amount life insurance policyholders: More than 23,000
  • "CDIB Capital Innovation Accelerator" - Taiwan’s largest integrated platform of entrepreneurial resources, with 3,539 people participating in 129 events
  • First to try the "Inclusive Financial Services through Telecom Mobile ID Authentication" initiative, aimed at financially disadvantaged people having difficulty accessing banking services, with Chunghwa Telecom upon approval of FSC
  • KGI Bank entered into a collective bargaining agreement with its labor union on June 13, 2019, with all of its employees covered by the collective bargaining agreement
  • Average training hours per employee: 73.8, a 98.4% increase from the previous year
  • Total public welfare expenditure: NT$98.76 million 

Environmental

  • CDF won the Climate Leadership Award in the 2019 Taiwan Corporate Sustainability Awards
  • CDIB Capital International Corporation (CCIC) won the Most Innovative M&A Deal Award in the MAPECT Taiwan M&A Awards 2019 for CDIB Capital Asia Partners' acquisition of JINTEX Corporation Ltd. through the tender offer in 2019. JINTEX is committed to the development of non-toxic and eco-friendly products that comply with EHS regulations. As a pioneer of environmental sustainability, JINTEX boasts "smart" technologies or "green" innovations as its core competency for growth.
  • New building received the gold-grade green building candidate certificate
  • KGI Bank engaged in six financing cases for renewable energy-based electricity generation projects, expected to reduce 17.98 million metric tons CO2e; balance of green project financing: NT$20.4 billion
  • Spending on environmental protection measures: NT$71.62 million
  • Amount of green procurement with 20 eco-labels recognized by the Environmental Protection Administration: NT$122.88 million (93.7%)
  • CDF received two green procurement awards from the Environmental Protection Administration and Department of Environmental Protection, Taipei City Government, respectively, in 2019; China Life Insurance received the green-procurement award from the Department of Environmental Protection, Taipei City Government, for four consecutive years.
  • Awarded 31 solar power certificates for 31,000 kWh of green power