Fubon Financial

Fubon Financial Holdings and Three Subsidiaries Passed the "CG6010(2015) Corporate Governance Assessment" of the Taiwan Corporate Governance Association

2017.03.06

Fubon Financial Holdings is once again recognized for sound corporate governance! Fubon Financial Holdings and subsidiaries Taipei Fubon Bank, Fubon Insurance and Fubon Life simultaneously passed the "CG6010(2015) Corporate Governance Assessment" of the Taiwan Corporate Governance Association," making Fubon the only financial holding company in Taiwan to have three subsidiaries certified for "Excellence" this year. The certification was a testament to how Fubon Financial Holdings is committed to implementing sound corporate governance and adopting benchmark practices around the world.

Taiwan Corporate Governance Association held its award ceremony today (the 6th), during which Fubon Financial Holdings President Vivien Hsu appeared to accept the award on behalf of the group. Vivien Hsu said in her speech that Fubon Financial Holdings believes in building a strong corporate culture through sound corporate governance, and using it as a means to improve competitiveness for the benefit of all stakeholders. Fubon Financial Holdings will continue to participate in sustainability assessments and adopt practices from the world's benchmark companies to establish the organization's image as the role model in corporate governance!

Vivien Hsu said that the worldwide green banking movement has prompted Fubon Financial Holdings to apply its banking profession to the fulfillment of corporate social responsibilities. The equator principles, for example, are one of the approaches that will be adopted by Taipei Fubon Bank to enhance risk control and develop a sustainable and professional environmental/social risk management system. By evaluating the borrower's performance in terms of environmental protection and corporate social responsibilities, Fubon hopes to exert its financial influence and guide industry participants through transformations that would ensure their sustainability.

In addition, Fubon is dedicated to creating green value in its services by actively supporting the government's environmental protection policies, including renewable energy. The company has been purchasing green electricity since 2014; and the 1.26 million KWH purchased in 2016 put Fubon ahead of all financial holding companies. The company has also taken the initiative to direct suppliers' attention towards climate change, by purchasing products that are energy-certified, environment-certified and green building-certified. In 2016, the company made approximately $200 million of green purchases. Fubon has been planning for the development of the ISO 14064-1 Greenhouse Gas Inventory System since 2012; it became the first financial holding company to complete a greenhouse gas inventory system and obtain external certification.

The "CG6010(2015) Corporate Governance Assessment" performed by the Taiwan Corporate Governance Association was based on the best principles, best practices and characteristics of TWSE/TPEX listed companies in Taiwan. It is a fair and objective assessment of a company's corporate governance system in six main aspects, namely: protection of shareholders' interests, fair treatment for shareholders, stakeholders' interests and social responsibilities, transparency and disclosure, board responsibilities, and corporate governance culture.

Taiwan Corporate Governance Association commends Fubon Financial Holdings for the six corporate governance assessments it has participated in since 2009, and recognizes the organization's effort to enhance corporate governance by actively engaging in independent third parties for corporate governance assessment and certification. Fubon Financial Holdings emphasizes growing with time, and is able to adjust its corporate social responsibility policy and management rules to accommodate its future development. The company addresses shareholders' interests by introducing an electronic voting system and by providing detailed information and descriptions in the shareholder's meeting manual about the discussed agenda. Fubon was also the first among its peers to actively involve shareholders in corporate governance by voting on shareholder meeting agendas on a case-by-case basis. Information is updated and disclosed to stakeholders through annual reports, the website and other appropriate means of communication.

Meanwhile, Taipei Fubon Bank, Fubon Insurance and Fubon Life once again passed the "CG6010(2015) Corporate Governance Assessment," for which the Taiwan Corporate Governance Association had expressed affirmation in regards to the continuous efforts taken by the three subsidiaries to improve corporate governance.

Fubon Financial Holdings' exceptional corporate governance has earned the respect of local as well as foreign professional institutions. In 2016, Fubon Financial Holdings was chosen as one of the compositions of "DJSI - Emerging Markets," making it the only Taiwanese financial holding company to be chosen in the "FBN Diversified Financial Services and Capital Markets" category! In addition, Fubon Financial Holdings was named the No. 1 "Most Admired Company in Taiwan" by CommonWealth Magazine for six years, won the "Platinum Award for Corporate Award" by The Asset for six consecutive years, and received "Recognition Award for Corporate Governance" from Corporate Governance Asia for eight years. It is undeniably the new role model in corporate governance.