The global economic situation in 2022 was affected by unfavorable factors such as geopolitics and monetary policies, as well as complex threats and challenges such as extreme climate and ecological crises, which will continue to influece the domestic political and economic situation. Nevertheless, the importance of ESG (environmental, social, and corporate governance) issues can totally be felt in the international trend of sustainability and the advancement of domestic financial policiest.
In the face of the increasingly apparent impact of climate change, countries around the world have all announced and taken actions towards achieving "net-zero emissions by 2050". The financial industry has been entrusted with a critical and important mission. In March 2022, the Executive Yuan announced the "Taiwan’s Pathway to Net-Zero Emissions in 2050", which mentioned that through the funding, commodities, and collaborative efforts of financial institutions, various industries will be guided towards sustainable transformation. .
In response to the lead of the Financial Supervisory Commission (FSC), Yuanta Financial Holdings has joined the "Coalition of Movers and Shakers for Sustainable Finance" to take more actions on prudently responding to the physical and transformational risks of climate change, take specific actions to reduce carbon emissions, and guide customers and play peer effects to drive the industry and society towards the goal of sustainable development.
The Group's sustainable vision is to "become an international benchmark enterprise for sustainability to actively promote a better future for future generations". We integrate ESG into our corporate culture and business strategies, and continuously demand and improve ourselves by participating in domestic and international evaluations and initiatives. In 2022, we were honored to be selected for the fourth consecutive year as a component of both the "Emerging Markets Index" and "World Index" of the Dow Jones Sustainability Indices (DJSI). From board members to every employee, we are fully committed to achieving our goals with a high level of execution and excellence in all aspects of ESG.
In order to establish a sustainable management and service model, the Group employs a scientific and systematic approach to environmental management, and enhances management efficiency by adopting relevant international standards. For instance, we have established carbon reduction strategies and pathways based on the Science Based Targets initiative (SBTi). In July 2022, we became the fourth financial institution in Asia to pass the review. We have also implemented the Internal Carbon Pricing (ICP) mechanism to internalize the "external cost" of greenhouse gas emissions and actively promote carbon reduction within the Group. Furthermore, we have incorporated climate risks into our existing risk management procedures and published our first TCFD Report in accordance with the Task Force on Climate-Related Financial Disclosures (TCFD) framework. Our efforts in environmental sustainability have been widely recognized by domestic and international organizations. For three consecutive years, we have been rated A in the CDP international carbon disclosure project, and we have also been ranked in the leadership level for five consecutive years.
Robust corporate governance is the cornerstone of sustainable business operations. The Group follows the "Corporate Governance 3.0 - Sustainable Development Roadmap" to enhance the functions and effectiveness of our directors of the board, and has established "Performance Management Measures" that require senior managers to link their work objectives with sustainable business practices. Through a performance-linked reward system, we concretely realize our sustainable development goals. Furthermore, we continuously enhance our ESG disclosure, and our ESG Report adopts both GRI and SASB standards, which are verified by third-party experts and accountants. In 2022, Yuanta was ranked among the top five percent (5%) of companies in the Taiwan Stock Exchange's eighth (8th) Corporate Governance Evaluation.
In terms of social engagement, employees of Yuanta actively engage in volunteer services, demonstrating high enthusiasm and social concern. The Group has long been concerned about disadvantaged groups, supporting community organizations and groups. In 2022, the beneficiaries of public welfare activities exceeded 670,000, and the number of beneficiary groups exceeded 110. We not only lead by example, but also invite stakeholders (including employees' families, suppliers, and customers) to respond to public welfare and environmental initiative activities, expanding our social influence.
The spirit of Yuanta is to fulfill "your biggest dreams", with the sustainable goal of "DREAM", which includes five aspects of sustainability: "full engagement in social participation (DEVOTION)", "customers’ number one trusted brand (RELIABILITY)", "green pioneers in environmental change (EXCHANGE)", "provide an exceptional workplace that employees aspire to work in (ACHIEVEMENT)", and "a leader in corporate governance (MOTIVATION)". The Company has set specific med-term and long-term goals to integrate ESG into its operational strategy, and has actively collaborated with stakeholders to raise awareness of sustainable development and expand its impact. Yuanta aims to ensure the Earth's sustainable rotation and the long-term survival of the Company, while creating a better future for future generations.
Yuanta Financial Holdings