Promoting Leading Investment


Underlying Principles
The Leading Investment strategy is outlined in the Fubon ESG Visioning Project strategy blueprint. The strategy states that the Company’s goals are bettering human health and wellbeing; ensuring sustainable and clean energy for all; helping to complete basic infrastructure; and promoting inclusive and sustainable economic growth. In accordance with these goals, the Company will continue to seek out themed investments in biotechnology, green energy, basic infrastructure, the 5+2 Industries, and industries with good ESG performance and low carbon emission. In addition, the Company will also incorporate ESG into investment procedures and establish an ESG evaluation mechanism. Doing so will promote better sustainable performance of investments targets and of our peers in the financial industry.
Establishment of Working Teams
Fubon has a well-established organizational framework in place for promoting responsible investment that allows the Company to proactively achieve various strategic goals. The Investment Management Group reports to the Responsible Finance Team of the ESG Task Force. Meanwhile, senior executives from the Investment Management Group are selected to serve as working team committee members where they complete various tasks on a regular basis, such as summarizing the latest implementation status of responsible investments executed by the investment teams of Fubon's subsidiaries and reporting their findings to the ESG Task Force. Each subsidiary's investment team also designates personnel to undergo training and instruction, which enables them to help incorporate ESG principles into the investment procedures of their respective team.
Formulating Effective Management Policies
The Responsible Investment Management Principles are held as the highest guiding principle for the Company and its subsidiaries in promoting and implementing responsible investment. In doing so, the Company and its subsidiaries must take into account whether an investment adequately meets ESG standards before committing to an investment. Once investments are made, the Company must conduct regular inspections to determine whether each investment remains compliant with ESG criteria, by incorporating ESG principles into their relevant investment policies, internal regulations, and standard operating procedures. This meticulous process entails the exercising of stock rights, creditor rights, as well as shareholders’ equity for companies based in Taiwan and other countries; and the process serves as the main guiding principles for formulating Fubon's responsible investment policies. Moreover, Fubon has adopted the six Principles for Responsible Investment (PRI) advocated by the UN as the basis for disclosing company information to outside parties.
Promoting Strong Management Practices
In order to effectively implement ESG management policies, the investment teams of each subsidiary have set up various management mechanisms based on the specific features of each investment product that are continuously refined and adjusted. Prior to making an investment, our investment teams conduct an assessment based on various ESG indicators and screen out unsuitable investments according to an internal blacklist and other indicators. After an investment has been made, the investment teams carry out regular inspections and engage in principled shareholder activism practices.
Descriptions of Major Accomplishments in 2018 Based on the Six Principles of Responsible Investment are as follows:

Six Principles of Responsible Investment | |
1. Incorporate ESG Criteria into Investment Analyses and Decision-Making Processes |
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2. Incorporate ESG Criteria into Fubon's Ownership Policies and Practices |
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3. Seek Appropriate Disclosure of ESG Information From Institutions in Which Investments Have Been Made |
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4. Promote Acceptance and Implementation Of PRI Within The Financial Industry |
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5. Cooperate To Reinforce Implementation Of PRI Criteria |
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6. Individual Reports On PRI Activities and Progressions |
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