Promoting Golden Practices

Promoting Golden Practices
Promoting Golden Practices

Underlying Principles

In 2016, Fubon Financial Holdings formulated the "Golden Practices" strategy to accommodate the "Fubon ESG Visioning Project," a strategic blueprint drafted by Fubon Financial Holdings based on the UN's sustainable development goals (SDGs). The strategy aims to continue Fubon's promotion of a more diverse and equitable culture of "positive energy" and create a welcoming workplace environment that offers employees a sound work-life balance. Meanwhile, in light of the impact of climate change on the environment, Fubon remains committed to actively supporting government policies that promote environmental protection, energy conservation, and reduced carbon emissions and actively participates in the Carbon Disclosure Project (CDP). In addition, Fubon makes full disclosure of its carbon usage and strategies for climate change risk management for the whole world to see. Since 2013, Fubon Financial Holdings has participated in the Taiwan Corporate Sustainability Forum (TCSF), underscoring our dedication to creating a green finance brand and providing services rooted in green values. By expanding Fubon's communication and interaction with local communities and generating tangible results through our various policies and programs, we are fulfilling our corporate social responsibility and helping to promote sustainable development.

Establishment of Working Teams

In 2015, Fubon Financial Holdings established the ESG Task Force under the Corporate Governance and Sustainability Committee. The Task Force consists of six separate working teams and is overseen by an independent director. The Human Resources Division reports to the Employee Care Team of the ESG Task Force, and is primarily tasked with matters relating to employee compensation and benefits, talent development, labor-management relations, and the maintenance of a healthy workplace. The General Administrative Office serves under the Environmental Sustainability Team, and building management companies of Fubon's main office building management divisions have been retained to provide assistance and management support. The Environmental Sustainability Team is primarily tasked with handling environmental management and green purchasing, and helping Fubon become a low-carbon enterprise. Meanwhile, senior executives from the Human Resources Division and the General Administrative Division are selected to serve as working team committee members and are responsible for summarizing the latest status of responsible investments executed by relevant departments of Fubon's subsidiaries and reporting their findings to the ESG Task Force on a regular basis. Moreover, the team provides periodic education and training to working team members in order to boost their knowledge and awareness of sustainability issues among working team members and ensure the effective promotion and implementation of ESG guidelines.

Formulating Effective Management Policies

In order to effectively make use of the Golden Practices strategy to promote various programs developed by the Employee Care Team, the Human Resources Division is responsible for attracting, incentivizing, training, developing, retaining, and accumulating the human capital needed to achieve sustainable operations in accordance with internal quality management policy. Furthermore, Fubon has set its sights on having the most innovative human resources team in Asia to provide professional human resources services within the Company.

In addition, we follow the "Human Rights Policy"and"Corporate Social Responsibility Best Practice Principles for Suppliers" formulated in accordance with the core labor standards of the UN Universal Declaration of Human Rights and the International Labor Convention. We also define the scope of "human rights due diligence survey", defining risk issues to be identified for different suppliers, employees, customers, and investments, as well as key groups that may be at risk, while examining the existing management system and mitigation measures, setting a goal to complete to ensure that all employees and outside suppliers are treated with fairness, respect, and no discrimination. In order to actually implement human rights policies, after the first human rights risk assessment conducted on all employees in 2017, we expanded the scope of the assessment to include suppliers in 2018, and nearly 80% of suppliers that work closely with the Company have completed human rights risk assessments. At the same time, field visits were conducted for key suppliers, and a third-party consultant company was hired to propose risk mitigation suggestions according to the assessment results in order to increase suppliers' awareness and attention to human rights issues.

Aside from increasing environmental awareness among employees within the Company and encouraging employees to lead by example, we urge our external suppliers to follow the government's environmental protection policies. Our goal is to create a superior work environment and a green finance brand through various employee care and environmental sustainability programs and combine internal and external resources to achieve mutual prosperity for a better society.

Promoting Strong Management Practices

Fubon Financial Holdings strives to foster an internal corporate culture of equality, tolerance, and open communication. In addition to providing employees with solid career development options in the form of a structured, open-ended, and independent two track learning system, we aim to cultivate a stable and rewarding environment to retain talent, promote a safer and healthier workplace, and strike a better work-life balance. In terms of environmental sustainability, Fubon is dedicated to implementing programs to lower emissions and promote sustainable development. It is our sincere hope that continuing to implement our employee care and environmental sustainability policies will result in more positive energy at all levels of the Company and enable us to establish a model workplace.

Management Practices ESG Policies Results in 2018
Pinpoint Fubon's Total GHG Emissions by Expanding the Scope of the GHG Inventory.
  • Expanded the scope of environmental data collected for the GHG inventory (such as power consumption, water consumption, waste volume, employee travel, etc.). In 2018, the 7 new business locations are also included in the inspections, thus maintaining 100% coverage.
  • Fubon Financial Holdings is the first Taiwanese corporation to receive the new BSI (British Standards Institution) greenhouse gas emissions inception certification.
Minimize Waste and Maximize Recycling.
  • In addition to promote eco-friendly principles by internal conference and e-mail, Sustainable Environment Team held 52 eco-friendly training courses in 2018, to encourage employees to develop eco-friendly habits and implement waste sorting, recycling, energy-conservation, and carbon reduction.
Prioritize Purchases of Products Certified as Energy-efficient, Ecofriendly, or with Green Building Label.
  • Priority is given to purchases of equipment and products that are certified as energy-efficient, eco-friendly, or have a green building material label; Fubon also participated in the "Green Purchase Pledge for Private Enterprises and Organization" initiative organized by the Environmental Protection Administration and Taipei's Department of Environmental Protection.
  • Approximately NT$340 million was spent on green purchasing in 2018.
Hold Energy Conservation Competitions, Highlight Environmental Issues, and Use Training to Increase Employee Participation & Affinity.
  • The "environmental office competition" was held quarterly and the "energy conservation competition" was held annually for branch offices.
  • Major actions included: Promoting waste reduction, reuse, recycling, energy conservation, reducing carbon emissions, maintaining a clean working environment, and cultivating environmentally-friendly habits, enabling all Fubon employees to jointly participate in the Company's energy conservation program and keep good habits in daily routines.
Meet Government Policies & Environmental Protection Pledges, Continue Green Purchasing and Supporting Green Energy.
  • In 2016 and 2017, we set our annual energy conservation target at a 1% reduction; beginning in 2018, the reduction target was raised to 2%. As a result, we are on track to reduce our total energy consumption by 8% over a three-year period by 2020.
  • Support green energy: Fubon Financial Holdings takes action to support the government's renewable energy policy. In 2018, solar panels were installed in the Kaohsiung Fubon Insurance Chunghua Building, Fubon Life Taichung Wenxin Building, Taipei Fubon Bank Taipei Zhongshan Building, and Fubon Life Taipei Hangover Building, generating 23,973 kWh of energy in 2018.
Implement Energy Management Policy to Reduce the Impact Energy Use Has on the Environment.
  • In 2018, Fubon Financial Holdings and its four major subsidiaries all passed ISO 50001 energy management system certifications. By introducing energy management systems, the Company can evaluate, analyze, and identify major areas of energy use and depletion, thereby improving the best use of energy; Office buildings and business locations continue to switch to energy-saving LED lights and replace old air conditioning systems that consume too much energy. Energy conservation systems are also introduced to the elevators, all in the effort to reduce greenhouse gas emissions.
  • Promoted energy conservation measures in Fubon Financial Holding's IT internet data center.
Strengthen Incentives for Environmental Management/ Sustainable Operations Development.
  • Fubon Financial Holdings and Fubon Insurance completed ISO 14001 EMS Certification in 2018.
  • Each year, the Company publicly praises Chief Building Manager Award and Building Manager Award winners with outstanding performances in the annual "Office Environment Competition" in major event, with the Chairman of Fubon Financial Holdings giving out the awards to honor outstanding supervisors.
  • Held annual business unit energy conservation competitions, and the best annual energy-conservation scores will be given bonuses or eco-related prizes.
Foster a Culture of Equality, Tolerance, and Open Communication.
  • Continued to promote gender equality; women account for more than 55% of Fubon's managers.
  • Employees with disabilities account for 1.1% of Fubon's total workforce, which exceeds the statutory hiring quota mandated by the government. In the future, we will continue to make more job opportunities available to employees with disabilities based on their specific skill sets in order to foster greater fairness and respect in the workplace.
  • Upon the expiration of their 3-year agreement, Taipei Fubon Bank, Fubon Securities and Fubon Futures negotiated the contents of a new agreement, with union involvement around 38.7%.
Enhance Employee Skill Sets Via Structured Career Development.
  • Held a total of 1,035 sessions of training classes with an average reported satisfaction rating of 4.7.
  • Continued to help supervisors refine their management abilities; over 2,900 supervisors completed leadership courses. Including 2018, nearly 800 employees have been certified through management trainee programs, and nearly 40% have been promoted to managerial positions.
  • More than 220 MAs have been hired, with a retention rate of nearly 60% to date.
  • More than 740 internal instructors have been developed; they taught more than 4,600 hours of classes in 2018, up nearly 30% compared to 2017.
  • Senior executives participate in the one-year "National University of Singapore Financial Industry Leadership Training Program"
Foster a More Diverse and Autonomous Learning Environment.
  • Continued to promote the mobile learning app and added over 210 new digital training programs, resulting in more than 360,000 logins.
Use Social Empowerment to Respond to latest Trends.
  • The number of students in the training and development program has continued to steadily grow; a total of 798 students participated in 2018.And outstanding interns are given priority during our hiring process to have an opportunity to become a full-time employee.
  • Continued to implement the "Rising Stars Scholarship Program"; this year, a total of NT$2 million was contributed to sponsor 40 underprivileged students in 2018.
Cultivate a Stable and Rewarding Environment to Retain Talent.
  • Average compensation of per non-managerial full-time employee was NT$1,252,000.
  • A total of 19,790 employees at the middle management level and below currently participate in Fubon's employee stock ownership plan (ESOP), accounting for nearly 90% of eligible personnel.
  • Implement "employee opinion surveys", reaching a coverage rate of 70%, with an overall engagement score of 75 points.
Cultivate a Positive Brand Image through Digital Technologies to Attract Top Talent.
  • Continued to hold large-scale on-campus recruitment drives and utilized more diverse hiring channels including social media platforms to successfully encourage 1,622 new individuals to join Fubon, accounting for 10.8% of all employees and resulting in a successful new hire rate of nearly 70%.
Promote a Safer and Healthier Workplace and Better Work-life Balance.

Marriage and Child Care

  • Provided paid maternity leave, maternity benefits, and childcare subsidies which all exceed legal requirements, enabling employees to receive more comprehensive resources and support during their important stage in life of having children. Roughly 2600 people applied for subsidies. NT$11.346 million was invested.
  • A total of 448 "Fubon babies" were born in 2018, equal to a birth rate of 29.9 per 1,000 people. Of those that did take parental leave in 2018, 55.1% of them returned to work. Those that returned to work in 2018 have a retention rate of 81.5%, an indication of the program’s effectiveness.

Health Promotion Efforts

  • Implemented the " Plan to Prevent Unlawful Harassment in the workplace " and the "Ergonomic Hazards Prevention Program".
  • Created the brand new "Wellness Cafeterias", featuring an improved dining atmosphere and better ingredients. The daily number of diners increased by 50% compared to 2017.
  • Promoted various health promotion plans featuring company basketball competitions, discounts and ticket giveaways for various sports events, health seminars, health club memberships, and various other types of healthy activities and clubs.
  • Fubon employees and their families were encouraged to participate charity, food safety and environmental protection’ activities; consequently, employees took paid volunteer leave a cumulative total of 490 times.