Fubon Financial

To achieve the Paris Agreement goal of keeping temperatures from rising more than 1.5°C above pre-industrial levels, exerting economic influence to promote low-carbon, sustainable practices is critical. Yet during this process of economic upheaval, climate action must also take into account social justice and economic opportunity for the transition to sustainability to succeed. Financial institutions have a pivotal role to play because they determine the direction of economic development by guiding flows of capital. They can use their influence to promote sustainable economic activity and facilitate the transitions of high-carbon industries, thereby reducing the social and economic risks of climate action and steering the global economy toward sustainable development goals.

Meanwhile, in the “Global Risks Report” released by the World Economic Forum in January 2024, four of the five most severe global risks identified over the long term (10 years) were closely related to environmental risks, while the other was a technological risk – AI-generated misinformation and disinformation. The findings were a warning to companies that their sustainability strategies needed to focus more on low-carbon, net-zero practices, and information monitoring to mitigate the impact of environmental and social risks on their operations.

Fubon Financial Holdings has led Taiwan’s financial institutions in earnings per share for 15 consecutive years. As an industry leader and the only member of the World Economic Forum from Taiwan’s financial sector, we are committed to not only being responsible to our shareholders and customers but also to valuing the well-being of our stakeholders and searching for solutions to the current wave of global change. Our mission is to encourage sustainable transformation in the private sector amid the climate crisis through sustainable finance and investment, sustainable insurance, risk management, inclusive finance services and products, and financial education. In 2021, we set four new major strategies under our ESG Visioning Project: decarbonization, digitalization, empowerment, and connection. Fubon Financial Holdings and its subsidiaries vigorously pursued those strategies, producing tangible results by the end of 2023.

Decarbonization:
Serving as a Green Finance Accelerator to Help the Value Chain Go Sustainable

Fubon Financial Holdings has manifested its commitment to sustainable transformations by prioritizing green finance and climate-related products and services and working hard to cut carbon throughout the organization. In 2023, we achieved several industry firsts. Taipei Fubon Bank arranged a NT$40 billion sustainability-linked syndicated loan to flat panel maker Innolux Corporation, the largest sustainability-linked syndicated loan ever made in Taiwan to that point. Within the loan syndicate, Taipei Fubon Bank made the biggest commitment of any single bank. Also in 2023, Fubon Insurance became Taiwan’s first non-life insurer to commit to “2050 net-zero” underwriting practices. To operate more sustainably, Fubon Financial Holdings purchased an additional 4.39 million kWh of green electricity in 2023, which brought the percentage of domestic locations that have adopted green power to 17% and set a record for Taiwanese financial institutions for most locations and power meters covered by a single green electricity purchase. It also represented a milestone in our transition from individual green power purchases to a more comprehensive phased-in renewable power strategy.

Digitalization:
Using Technology to Optimize Customer Service, Promote Financial Inclusion

Always customer-oriented, Fubon Financial Holdings uses emerging technologies to develop digital services aimed at ensuring that each customer has secure and convenient access to financial resources. That is particularly true in preventing financial scams capable of seriously disrupting the financial system. In 2022, Taipei Fubon Bank teamed up with the Ministry of the Interior’s Criminal Investigation Bureau to create an “Eagle Eye” anti-fraud model powered by patented artificial intelligence. In 2023, we launched a new platform, an “Eagle Eye Anti-fraud Alliance,” that brought together more than 30 banks. One of our major achievements of the year, the alliance has not only made the financial environment more secure but also shaped new partnerships for the good of the financial sector.

Empowerment and Connection:
Galvanizing Society’s Positive Energy, Starting from Within

Fubon Financial Holdings firmly believes that sustainable development is everybody’s responsibility, and we have created a wide range of educational and brand activities designed to raise sustainability awareness. In 2023, we teamed up with National Taiwan University’s Risk Society and Policy Research Center to hold the “Fubon Sustainability Forum,” at which representatives of the public and private sectors and academia discussed new and forward-looking topics related to sustainability. In 2021, we initiated a “Run For Green™” advocacy campaign aimed at planting 100,000 trees within a five-year period and cutting carbon emissions by an estimated 4,000 metric tons. We have also enlisted well-known athletes to speak out and focus public attention on sustainability issues.
Last year was the midway point of the United Nations’ 2030 Sustainable Development Goals campaign, and indications are that progress in achieving the goals has fallen short of expectations. The private sector, which benefits the most from public policy and social resources and has the biggest impact on employee families, must fulfill its responsibility to turn the situation around. In the future, Fubon will continue to pursue sustainable financial innovation and cross-sector cooperation, galvanize positive energy, take the lead on green finance, and drive industrial transformation to achieve a common good and sustainable future.