According to the newly released 2020 Dow Jones Sustainability Indices (DJSI), CTBC Financial Holding Co. (中國信託金融控股) has made significant progress in its environmental, social and governance (ESG) initiatives, including risk management and financial crime prevention as well as control, climate strategy, philanthropy and financial inclusion.
Such improvements in ESG, which are key components of the DJSI World Index, have been instrumental in the company selection to become a constituent of the Emerging Markets Index for the fifth consecutive year.
It is also the second time that CTBC Financial Holding is selected as a constituent of both the DJSI World Index and the Emerging Markets Index since 2017.
CTBC Financial Holding, which is one of Asia’s leading financial institutions, aspires to be a model of sustainability in the face of heightened risks of climate change and the impact of the novel coronavirus (COVID-19) pandemic, according to CTBC Financial Holding General Manager Daniel Wu (吳一揆).
In the future, CTBC Financial Holding will continue to respond to the expectations of shareholders, fulfill its corporate social responsibility, and adopt “Transformation & Transition” as its strategic axis, he added.
The DJSI was jointly launched in 1999 by S&P Dow Jones Indices and RobecoSAM Group, a Zurich-based sustainability rating agency. The DJSI is not only one of the most internationally credible corporate sustainability assessment tools, but also an important reference for global investors.
The DJSI consists of thousands of stocks from the Dow Jones Sustainability World Index; it is based on three criteria: economic, environmental and social. It assesses companies’ strategies, management, and characteristics of different industries, and only the top 10 percent of companies in each industry are selected for the DJSI.
As one of Asia’s leading financial institutions, CTBC Financial Holding is committed to “TRUST” and echoes the United Nations Sustainable Development Goals (SDGs), which are “Transparency,” “Responsibility,” “Understanding,” “Care” and “Service.” The “Satisfaction” and “Together” of social growth, each of which is geared towards the concrete implementation of sustainable finance.
In terms of internal sustainability management, CTBC Financial Holding established in March the Corporate Sustainability Office, which reports directly to the general manager of and coordinates the corporate sustainability strategy and refinement actions of FHC and its subsidiaries.
In June, the Corporate Sustainability Office was upgraded to a functional committee of the Board of Directors, convened by an independent director, to strengthen the oversight and management functions of the Board of Directors on sustainability-related issues.
In addition, CTBC Financial Holding has actively participated in international initiatives. In April, it signed the Task Force on Climate-related Financial Disclosures (TCFD) to actively respond to climate change issues. In October, it signed the Carbon Accounting Financial Partnership (CAFP); and in October, it signed the Carbon Accounting Financial Partnership (CAFP), becoming the first financial institution in Taiwan to join the PCAF.
Its subsidiary, CTBC Bank, signed the Equator Principles (EPs) and voluntarily followed the United Nations Principles for Responsible Banking (PRB) last year (2019), while another subsidiary, Taiwan Life Insurance Co., Ltd. (台灣人壽) introduced the Principles for Responsible Investment (PRI) and Principles for Sustainable Insurance (PSI) in 2019.
The aforesaid principles were announced in July as the first Confirmed Trust in the financial industry. CTBC Financial Holding is planning to publish the PSI report by the end of 2020, with a view to exerting our financial influence in a practical way and aligning itself with international standards.