Key Issues Raised by Stakeholders

Regulatory Agencies

Issue of Concern Our Strategy and Tactics
Corporate Governance
Ethical Corporate Management “Codes of Ethical Conduct,”“Ethical Corporate Management Best Practice Principles,” and “Corporate Social Responsibility Best Practice Principles” guide ethical management practices, foster sound business models and risk management mechanisms, and promote social welfare objectives.
Information Disclosure and Transparency Material information disclosed through online reporting systems and the Company’s performance and strategic development is explained through an annual shareholders meeting, investor conferences, and seminars and roadshows in Taiwan and overseas.
Legal Compliance
Risk Management Enterprise risk management (ERM) model adopted to monitor and manage potential business and operational risks in an integrated way. Risk management systems, policies and procedures support the model, and subsidiaries fully comply with them. To cope with external economic changes, social structure shifts, geopolitical conflict and information security risk, the Company pays close attention to emerging risks and puts in place measures to deal with them.
Personal Information Protection Mechanism
Operating Performance Fubon Financial Holdings’ after-tax net profit rose 5.6% year-on-year in 2015 to NT$63.6 billion; EPS was NT$6.21. Both were company records and led the domestic financial holding company sector for the seventh consecutive year.
Solutions Linking Core Competencies Fubon subsidiaries use their core competencies to help address problems spawned by an aging society and promote social inclusion through financial products to fill in gaps in the social assistance systems; financial literacy education also a big priority.
Consumer Rights Protection A financial consumer protection mechanism has been established at the financial holding company level as a basis for subsidiaries to handle consumer disputes fairly, reasonably and effectively.
Company’s Network and Acquistion Opportunities Responding to “Asian Cup” policy, Fubon Life acquired 48% stake in South Korea-based Hyundai Life and Fubon Securities took a stake in Huishang Futures.
Auditing System Auditing system developed based on national regulations on the internal audit and control systems of financial holding companies, and an Audit Division has been set up under the board of directors to help check and evaluate internal control systems.
Customer Complaint Mechanism A financial consumer protection mechanism has been established at the financial holding company level as a basis for subsidiaries to handle consumer disputes fairly, reasonably and effectively.
Employee Ethics/Integrity “Codes of Ethical Conduct,” “Ethical Corporate Management Best Practice Principles,” and “Corporate Social Responsibility Best Practice Principles” guide ethical management practices, foster sound business models and risk management mechanisms, and promote social welfare objectives.
Products and Services Before Fubon subsidiaries launch a new business or a new financial product or undertake important activities such as joint marketing, outsourcing or commercial cooperation initiatives, they must all be legally vetted to ensure that they fully comply with applicable regulations. Also, Fubon has established a “Policy on Fair Customer Treatment Principles” and a “Strategy on Fair Customer Treatment Principles” based on the Financial Supervisory Commission’s “Principles on Treating Customers Fairly.”
Green Credit Taipei Fubon Bank has incorporated climate change, pollution, investment and CSR issues as criteria in credit appraisals based on the Equator Principles, creating a more complete risk control framework. In 2015, bank rejected a request for a loan from a company in the gambling sector because of this policy.
Labor-Management Relations Fubon Financial Holdings maintains close communications with its unions and holds regular labor-management meetings to coordinate related issues and promote cooperation. In 2015, Taipei Fubon Bank and Fubon Securities signed collective bargaining agreements with their employees’ unions, a major milestone in labor-management relations and employee rights.
Responsible Investment The Company applies responsible investment principles to its investment decisions and looks at the investment target’s environmental, corporate ethics and social responsibility strandards before and after making a move. Related internal guidelines were revised in 2015 and used to review all existing investment positions. In terms of real estate, green-building design principles are written into contracts, and funds have been injected into public infrastructure and biomedical projects that contribute to good health and well-being.
Energy Conservation/Carbon Reduction Fubon Financial Holdings has championed energy conservation and carbon reduction and taken several steps to promote energy management, automation, waste reduction and resource recycling and reuse. It has set a short-term goal of 1% reduction of CO2e emissions in a single year and a longer-term goal of a reduction of at least 5% of CO2e emissions in five years (with 2014 as a baseline).
Meet the Needs of an Aging Society As Taiwan society ages, Fubon Life has helped people become more conscious of the potential risks of long-term care and long lifespans. In 2015, it introduced a “Senior Living Services Network” that helps customers prepare for retirement and operates a hotline exclusively for elderly policyholders.
FinTech Fubon Financial Holdings formally opened a FinTech Office in December 2015. It will work with Fubon’s financial services businesses and affiliated telecom, e-commerce and digital services providers to develop FinTech applications and introduce innovative, customer-oriented services based on new technologies.
Insurance that Helps Deal with Climate Change Fubon Insurance helps companies manage natural disaster risk using quantitative methods and strengthens their resilience through insurance planning and loss prevention measures. The insurer also worked with the Council of Agriculture to introduce Taiwan’s first aquaculture insurance product in 2015. The policy helps incorporated aquaculture businesses cope with losses stemming from climate change and natural disasters.
Caring for Underprivileged Groups Fubon subsidiaries and the Taipei Fubon Bank Charity Foundation have teamed up with the Federation for the Welfare of the Elderly on a “Fubon Dementia Advocacy Project” to provide special assistance to customers or their family members who show signs of dementia. Fubon Financial Holdings also leverages the public welfare platform formed by its four foundations to support disadvantaged groups by helping children stay in school, providing emergency assistance, educating aboriginal children, nurturing the talents of people with disabilities and helping people break out of poverty.
Media Communications Fubon Financial Holdings discloses material information publicly, and details the Company’s performance and strategic development through an annual shareholders meeting, investor conferences, and seminars and roadshows in Taiwan and overseas.
Use of Donations Fubon Financial Holdings discloses its charitable donations in its annual report.
Employees Adopting Sustainable Practices A quarterly “environmental office competition” and an annual “energy conservation competition” for branch offices are held to instill eco-friendly habits in our workers, encourage waste sorting and recycling and energy conservation, and foster a “green” workplace environment.
Eco-Friendly Purchases When Fubon Financial Holdings buys equipment, it chooses products certified as energy- efficient or eco-friendly or as green building materials. In 2015, Fubon’s green purchases totaled NT$258 million, and Company was named as a “Green Purchasing Benchmark Company” by the Taipei City government for a fourth consecutive year.