In 2021, the COVID-19 epidemic was still ongoing and causing social and economic turmoil around the world. In addition, natural disasters caused by extreme climate change have also alerted us to the threat and impact that climate change has on human beings. The importance of ESG (Environmental, Social and Governance) has become a global consensus.
On World Earth Day, April 22, 2021, Taiwan announced it was joining the ranks of 2050 net zero emissions community. As a corporate citizen, Yuanta is actively reducing greenhouse gas emissions and mitigating the impact of climate change. It has established Taiwan’ s first financial business location that uses 100% green electricity. We are committed to achieving 10% green power usage by 2023 and will follow the Science Based Targets' (SBT) carbon reduction targets and set up emission reduction strategies and pathways to align with the international trend of “net zero carbon emissions” .
The epidemic worsened in Taiwan in May, straining medical resources and severely overburdening healthcare workers. First to see the needs of the community, Yuanta donated NT$160 million to the frontline medical system and worked with suppliers to create more than 1,000 kits with quarantine supplies to give students peace of mind at school. We also prepared ample materials for frontline employees at each branch and provided an epidemic allowance of NT$10,000 to maintain uninterrupted financial operations to put the hearts and minds of employees at ease. Yuanta implemented a meticulous epidemic prevention strategy and established a standardized workflow, becoming the first financial institution in Taiwan to be certified under the ISO 45005 General Guidelines for work safety during an epidemic, helping the government to play a stabilizing role in stabilizing people’ s lives.
Despite the impact of the epidemic on the global economy, the Company demonstrated operational resilience, post-tax net income of NT$34.866 billion, EPS of NT$2.87, and ROE of 13.35%, representing a 44.6% increase in profitability. For three consecutive years, the Company has been listed on the Dow Jones Sustainability Index (DJSI) Emerging Markets Index and the World Index, ranking first in the world in the category of diversified financial services and capital markets. As an international sustainability benchmark company, Yuanta improves and adjusts the direction of ESG implementation on a rolling basis with full commitment from top to bottom, from board members to each employee, to achieve our goals efficiently and effectively.
The Company has followed the “Corporate Governance 3.0 - Sustainable Development Roadmap” to strengthen ESG information disclosure. The sustainability report employs both GRI and SASB standards and is third-party certified and accountant certified, so that the public can understand Yuanta’ s sustainability information, which is provided to them with clarity and transparency. To implement ESG promotion, the Group has specified in the "Performance Management System" that the work objectives of senior managers must be linked to corporate sustainability-related business. Through the performance-linked reward system, the Group is able to achieve its sustainable development goals.
In terms of environmental sustainability, we are committed to reducing the impact of our operations on the environment through scientific and systematic environmental management and the introduction of relevant international standards to improve management efficiency. We are focusing on global climate change and carbon reduction issues, are promoting the Task Force on Climate-related Financial Disclosures (TCFD) with both risk and opportunity, and plan to publish a TCFD report in 2022. By introducing the Internal Carbon Pricing (ICP) mechanism, the external cost of greenhouse gas emissions has been internalized and the Group has taken a proactive role in reducing its carbon emissions, which has been recognized by domestic and international organizations. Yuanta was awarded the “Highest Leadership Level A” of CDP (formerly Carbon Disclosure Project) and the “Silver Award” of the 3rd National Enterprise Environmental Protection Award.
In terms of social participation, Yuanta staff volunteer on their own initiative, with an average of one in five volunteering, demonstrating a high level of enthusiasm and social concern. The Group’ s long-term concern for disadvantaged groups and community organizations and groups has expanded the scope of public welfare care. 2021 charity activities help more than 100 organizations benefit more than six million people. We also invite our employees’ families, suppliers and customers to join us in public service and environmental advocacy activities to expand our social impact.
With the spirit of “fulfilling your biggest dream” , Yuanta has adopted “DREAM” as its sustainable goal and has been practicing sustainable development in five major areas: corporate governance, customer rights, employee care, environmental sustainability, and social welfare. In 2021, we launched our second five-year sustainable development strategy roadmap, incorporating ESG concepts into our business strategy and actively working with stakeholders to call on all sectors to focus on sustainable development and work together with the economy, society and the environment to keep the Earth “spinning sustainably” and businesses running sustainably, so that together we can promote a better world for future generations.
Yuanta Financial Holdings