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About this Report
Reporting period
Scope and boundary
Reporting principles
External assurance of report
Contact method
Corporate Social Responsibility Reports from past years
First Financial Holding Co., Ltd. (hereafter referred to as FFHC or "Our Company") not only provides the full-spectrum of financial products and services to facilitate financial transactions and investments by our customers. We also have a long history of fulfilling and promoting corporate social responsibility by giving back to society, improving rights well living environment quality of employees in order to fulfill CSR in a more effective manner. To further emphasize the efforts and determination of FFHC and its subsidiaries (Our Group) in the economic, social, environmental and governance aspects of CSR as well as strengthen our communication with stakeholders and the general public, the "First Financial Holding 2015 Corporate Social Responsibility Report" (the "Report") was compiled.
The Report discloses the performance and actions of FFHC in the economic, social, environmental and governance aspects during 2015 (From January 1 to December 31, 2015). Some of the information goes back to 2013 and 2014 to illustrate differences or growth.
This Report encompasses FFHC and its 8 subsidiaries First Bank, First Securities, First Securities Investment Trust, First-Aviva, First Financial Assets Management, First Consulting, First Venture Capital and First Insurance Broker. For data related to environmental performance then the scope of disclosure covers the business locations in Taiwan as well (does not include First Securities, First Venture Capital and the First Finance Assets and their branches). The relevant data are calculated based on international standards. All financial data are calculated using NTD.
This basis and framework of the Report is based on the Global Reporting Initiative (GRI) G4 guidelines. The content includes reference tables for the GRI/Financial Sector Supplement, UN Global Compact and ISO 26000 Social Responsibility Guidelines. We will continue to compile and publish this CSR report on an annual basis. The previous report was published in June 2015. The complete report is available for download and viewing by the general public on the First Financial Holding corporate website under the Corporate Social Responsibility section.
The Report has been verified by the British Standard Institution (BSI), an independent third-party certification body, as being in accordance with the AA 1000 validation standard and the GRI G4 guidelines in terms of materiality, inclusiveness and responsiveness. The content disclosed in the Report matches the core options of the GRI G4 guidelines. The independent assurance statement from BSI is included in the Appendix.
Corporate Governance Section, Administration Division, First Financial Holdings Co., Ltd.
Tel: +886-2-23485364Fax: +886-2-23119691Address: No. 30, Sec. 1, Chongqing S. Rd., Zhongzheng Dist., Taipei CityE-mail:[email protected]: http://www.firstholding.com.tw/tw/csr/csr_b01.htm
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First Financial Holding CSR Report
Table of Contents 2015Letter to Stakeholders
Awards and Acknowledgments
Corporate Social Responsibility and Stakeholder Communication
Sustainable Governance
First Performance - Rewarding shareholders
First Brand - Innovative service
First Governance - Exceptional management
First Integrity - Risk management
Green Finance
First Energy - Protecting the planet
First Security - Safeguarding customers
First Environment - Caring for the land
Happy workplace
First Work - The right people in the right place
First Compensation - Diverse benefits
First Workplace - Friendly environment
First Training - Talent cultivation
First Labor - Looking after employees
Social Harmony
First Service - The customer comes first
First Care - Love for Taiwan
First Dream - Pride of Taiwan
First Culture - Grassroots cultural development
Independent assurance opinion statement
Greenhouse Gas Verification Statement
Global Reporting Initiative (GRI) G4.0 Content Index
GRI Financial Service Sector Supplement Content Index
United Nations Global Compact Content Index
ISO 26000 Index Content Index
UN Sustainable Development Goals Content Index
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First Financial Group was founded 117 years ago in 1899. To uphold the spirit of "a century of tradition and innovative service" and become the "No.1 brand in green finance as our target, we are working with society to protect the planet, communication compass ion and fu l f i l l our corporate soc ia l responsibility. In 2011 we began adopting global sustainability reporting guidelines for the compiling of the CSR report every year. The report discloses our Group's efforts and results in the Environment (E), Society (S) and Governance (G). It also assesses our strategies and action plans for sustainability. Looking back on 2015, despite challenges in the external business environment such as weakened global growth, fluctuating currency rates and declining exports, through the joined efforts of all employees First Financial Group continued to report consolidated pre-tax profits of NTD18.976 billion. This represented a new record for the group and a 15.12% increase over the previous year. It is not only far above the 3% average growth achieved by Taiwan's finance & insurance industries in 2015 but also marked the 4th consecutive year that surpassing the NTD10 billion record. It illustrates that the integration strategy adopted over the years in response to macro has produced a strong performance in areas such as cross-border network services, cash management platform, and streamlined value chain financing through electronic processes!
To fulfill our vision of becoming the leading financial brand in Asia, we have been actively expanding our presence in the Asia-Pacific region in recent years. The core subsidiary First Bank serves as the spearhead of our dual-pronged overseas development strategy of "west into China, south towards ASEAN." Apart from the grand-opening of Xiamen branch and Vientiane branch in Laos during 2015, the Chraoy Chongvar and Mean Chey branches in Cambodia also commenced operations as well in January 2016. First Financial Group now owns 39 overseas presences, giving us the most financial service locations in Asia amid any Taiwan-owned banks. All of our China offices have also been granted approval to offer RMB services as well, allowing us to provide Taiwanese businesses and local customers with more comprehensive
financial services. In 2015 we also completed a capital raising plan by NTD23.52 billion that both boosted the capital adequacy of the Group and our banking arm. This in turn led to Moody, Taiwan Ratings and Standard & Poor upgrading the credit rating for FFHC, First Bank and First Securities. This shows that our solid capital base and asset quality has been well-acknowledged by the credit rating agencies.
Climate change as well as the continued deterioration of the Earth's environment and global economy means that businesses should take their duty to stakeholders even more seriously by applying their core competencies and make a tangible contribution to both society and environment on top of ensuring their profitability. In 2015, First Financial Holding followed the targets set by the CSR Committee in carrying out action plans on corporate governance, green finance, satisfactory workplace and social harmony. This instills the spirit of CSR into daily operation of businesses. In corporate governance, we not only received the highest A++ rating in the Information Disclosure Evaluation of TWSE/GTSM-listed companies but were also rated in the top 10 by the Taiwan Stock Exchange Corporation in its 1st Corporate Governance Evaluation among all 798 listed companies. To promote green finance, we also set up the "Green Financing Review Principles" based on the "Equator Principles" to carefully screen all loan underwriting and business partners. As of 2015 we have successfully secured the CSR Declarations of 15,159 loan accounts to reduce the environmental and social risks associated with lending to improper borrowers. In 2015, the criteria of the "Green Financing Review Principles" was further extended to overseas locations, leasing companies as well as the fund management and insurance companies that offer products through the bank. To encourage suppliers to protect labor rights and the environment, our procurement requirements and contracts also incorporate the "Declaration on Human Rights and Environmental Sustainability Clauses." We have secured 697 of such declarations to date. At the same time, we set an example by forming the "Green Building Certification Program" team in 2010 to kick off our push for green finance. Seven existing office buildings have now been refurbished and received the
Letter to Stakeholders
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Diamond-grade Green Building Mark. We are also introducing electricity, water and fuel-saving initiatives as well as paperless measures as part of the Group's four key projects of "Environmental Sustainability", "Green Purchasing", "Green Financing Review Principles" and "Green Partners."
We are optimizing our business processes so as to give employees more leisure time to participate in community activities, in-service education or social welfare. Every effort is being made to build a "happy enterprise" that looks after employees and embraces CSR. We want to help employees achieve physical and mental well-being and make a corporate culture of "happy enterprise" the pride of First Financial Group. On the social welfare front, we have formed a volunteer service corps from more than 8,000 local employees to go where they are needed throughout Taiwan. In keeping with the spirit of "local care", we visit underprivileged children and seniors while also supporting young entrepreneurs and cultural creativity enterprises. We also sponsor sporting activities such as table tennis and tennis along with local arts, culture and musical concerts to give back to society with concrete measures.
For 2016, First Financial Group will follow a well- defined strategy of "Growth, Innovation and Sustainable Improvement" by supporting the upgrade and expansion of quality enterprises, providing a rich selection of cutting-edge financial products and services, enhancing our digital channels and cross-border value chain services, and striving to optimize and enhance the Group's profit structure. We will also focus on customer and channel development in order to deepen our customer relations management, protect consumer rights and enforce compliance. Organization and capital restructuring will be introduced to boost our operating performance as well. At the same time, we will continue to engage with society in many ways and enhance our corporate image on sustainability in order to achieve the goal of being a "niche", "regional", "digital" and "happy" enterprise.
FFH. Stakehoder
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01January
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2015
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Corporate card presented with "Best Corporate Product of the Year" by MasterCard International
Won the "Green Building" and "Industry and Commerce Division A" categories of the Taipei City Energy Leadership Awards (f)
"ISO 14064-1 Greenhouse Gas Inventory System" certification achieved by 30 First Bank branches including Zhongxiao Road branch
Received certificate of appreciation for "care and support of handicapped people" from GOFE
Received Excellence Award in the Environmental Friendliness Category of the "Global Views Corporate Social Responsibility Awards (a)
Received the 1st "CommonWealth Finical Management Role-Model Awards" including top 3 in the "Bank Financial Planning Image", "Recommended Financial Planning Bank", "Best Service Overall" and "Online Bank with the Best Investment and Financial Planning Service" categories, and "Role-Model Award" for overall performance (b)
Presented with certificate of appreciate for "Face Equality Supporting Enterprise" from the Sunshine Social Welfare Foundation
Received the distinction award in the private enterprise division of the 3rd "National Environmental Education Awards" (c)
Chosen for inclusion in the "Taiwan High Compensation 100 Index" for the second consecutive year
Received certification of appreciation for "Going Home for Premature Babies" from the Taiwan Premature Baby Support Association
Chosen for inclusion in the "Taiwan Employment Creation Index 99 " for the sixth consecutive year
Recognized by the Financial Supervisory Commission as "2015 Benchmark Insurance Company for Salary Increases"
ISO 50001 Energy Management System certification for five sites including the Headquarters building
9th place in the large enterprises category of the "Commonwealth Magazine CSR Corporate Citizenship Awards" (d)
Received "Voluntary Energy-Saving Enterprise" award from the MOEA Bureau of Energy
Received "Public Spirit Award" from the Ministry of Health and Welfare (e)
2015-2016 Awards and Recognition
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Chairman Ching-Nian Tsai presented with "Kwol-Ting Li's Management Award" his leadership at First Holding on improving business performance, fulfilling corporate social responsibility and promoting of green finance and public welfare. (k)
Wealth Magazine's "Financial Holding CSR Special Award" (l)
Received the "BSI Award" from British Standards Institution (m)
Presented with the "Golden Quality Award - Credit Card Data" from the Joint Credit Information Center for four straight years (n)
The four subsidiaries First Securities, First Securities Investment Trust, First-Aviva Life Insurance and First Financial Assets Management all achieved "ISO 14064-1 Greenhouse Gas Inventory" certification
Received "Outstanding Digital Finance Award" for the Outstanding Securities Service Assessment (o)
Received "Gold Award", "Transparency and Integrity Award" and "Climate Leadership Award" at the Taiwan Top 50 Corporate Sustainability Report Awards from the Taiwan Institute for Sustainable Energy (h)
Headquarters building passes the latest "ISO 14001 Environmental Management System" certification (i)
Received Gold Award in the "ROC Enterprise Environmental Protection Awards" from the Environmental Protection Administration of Executive Yuan (j)
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Recognized for "Outstanding Contribution to Green Purchasing by a Private Enterprise" by the Taipei City Government (g)
The Headquarters building and IT building were both recognized for excellence through "Taipei City Energy-Saving Label for Business Buildings"
Received certification of appreciation for the "Shining Star Singing Competition and Autism Awareness" event from the Taipei City Autism Foundation
Ranked in the top 5% of the Corporate Governance Assessment Program for the second consecutive year (p)
Received the three awards "A-Grade Bank for Creativity Industry Loans", "Participation Award for School and Community Financial Education" and "Financial Organization with Excellent Performance in Fraud Prevention"
First Financial Holding won the Global Views Corporate Social Responsibilityawards “CSR Annual Award – Financial Industry Model” and “HappyEnterprise Model Award”
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Recognized for excellent performance in the "Increasing National Insurance Coverage Program" of the Financial Supervisory Commission for the 15th consecutive time
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Corporate Social Responsibility and Stakeholder Communication
1 CSR organization structure
First Financial Holding Corporate Social Responsibility Organization Chart
Ethical corporate managementOrganizational strategyRisk managementRegulatory complianceProtection of shareholder rightsInformation transparencyInternal control
Product and service responsibilityCustomer data protectionConsumer rights protectionCustomer relations managementGreen product
Employee compensationEmployee welfareCompetency managementEmployer/employee relationsEducation and trainingEmployment environment
Social welfareCommunity participationCharitable activitiesCorporate image
Environmental sustainability policyCorporate carbon reduction managementGreen purchasingEnvironmental sustainability awarenessSupply chain management
First Financial Holding (FFHC) has long been committed to monitoring trends in society and fulfilling our corporate social responsibility (CSR), with significant effort invested towards promoting corporate governance, the development of a sustainable environment, and supporting charities. In 2011, the FFHC Board of Directors approved the establishment of a "CSR Committee" to improve the efficiency of CSR promotion efforts. The chairman of FFHC is also the chairman of the CSR Committee and its members are drawn from the presidents of the First Financial Group. Under the CSR Committee are working groups on "Corporate Governance", "Customer Care", "Employee Care", "Environmental Sustainability" and "Social Welfare". A dedicated unit is also assigned by each subsidiary for CSR communications, liaison and the provision of related information. The core team consists of 80 people (1 chairman, 8 committee members, 3 conveners, 5 executive directors, and 63 people split among the various working groups). The CSR Committee is administered by the Corporate Governance Section of the Administration Division and is responsible for the overall planning and promotion of CSR within the Group. The top-down approach ensures the effective and concrete implementation of CSR objectives. In 2015, education and training on Group CSR policy, Code of Conduct and annual targets were incorporated into core employee training courses. Changes were also made to the membership of the Customer Care WG to enhance the link between sustainability targets and core competencies.
Chairman(Chairman of FFHC)
Corporate Governance WG
Customer Care WG
Employee Care WG
Environmental Sustainability WG
Social Welfare WG
Committee Members(Presidents of FFHC and subsidiaries)
In 2011 the FFHC Board defined a "CSR Policy" and "CSR Code of Conduct" (see the "Corporate Governance section of the corporate website at http://www.firstholding.com.tw/tw/governance/manageRule.htm). "CSR Policy" defines our commitment to the fulfillment of our CSR on customers, employees, shareholders, community participation, charity, development of a sustainable environment, products and services, and ethical corporate management. The "CSR Code of Conduct" are the overarching guidelines on the economic, environmental and social risks and impacts of our company and our subsidiaries. It is aimed at realizing sustainable development through promotion economic, environmental and social progress.
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Corporate Social Responsibility and Stakeholder Com
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2 Corporate sustainability vision
3 Operation of the CSR team
First Financial Holding CSR Milestones
Establish CSR Committee
Defined FFHC CSR Code of Conduct, Policy and CSR Committee Organic Regulations
2011
2014
2012
2015
2013
Published first CSR Report (2011)
Set "No. 1 Brand in Green Finance" as the sustainable development target
Presented with "Newcomer Award" in the Taiwan Corporate Sustainability Report Awards
Received Commonwealth CSR Corporate Citizenship Award
2012 CSR Report certified by an independent certification body for the first time
Received "Financial Excellence Award" from the Taiwan Corporate Sustainability Report Awards and the "Creative Communications Role-Model Award" in Corporate Sustainable Development Performance
Revised FFHC CSR Code of Conduct, Policy and CSR Committee Organic Regulations
Received "Gold Award" and "Climate Leadership Award" from the Taiwan Corporate Sustainability Report Awards
14th place in the Large Enterprises category of the Commonwealth Magazine CSR Corporate Citizenship Awards
Published first English version of CSR Report (2014)
Received "Gold Award", "Transparency and Integrity Award" and "Climate Leadership Award" from the Taiwan Corporate Sustainability Report Awards
9th place in the large enterprises category of the Commonwealth Magazine CSR Corporate Citizenship Awards
Received Excellence Award in the Environmental Friendliness Category of the "Global Views Corporate Social Responsibility Awards
FFHC has made "Growth, Innovation and Sustainable Improvement" its targets and embraced the five key strategies of "Enhancing customer diversity value", "Management of digital marketing experience", "Leveraging capital to create value", "Expanding the penetration of international business" and "Building a model happy enterprise" even as we continue our steady transformation into a "Regional", "Niche", "Digital" and "Happy" financial institution. In listening to the voices of our stakeholders during this process we have come to recognize that "fulfilling the social responsibility of the finance industry in the financial service supply chain" and "integration with core competencies" are crucial to sustainable corporate development. Both of these crucial elements are therefore taken into account when we set our economic, environmental and social targets in order to form a partnership with our stakeholders for realizing a future with sustainable and harmonious development.
Every year, each working group compiles the E.S.G. Issues of Concern to FFHC stakeholders then draws up the CSR annual targets and draft action plans for the following year. These are discussed and revised internally at WG meetings before being submitted to the "CSR Committee" for review. Approved proposals are then announced for implementation. Progress on each target and action plan is then tracked and reviewed on a quarterly basis by CSR Committee WG meetings. For each target not met, each working group must propose a concrete improvement plan to the CSR Committee. At the end of the year, CSR performance from the preceding year must be reported to the Board of Directors within four months. The 2015 CSR performance report was submitted to the Board of Directors in March 2016, for their reference.
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STEP 1Stakeholder identification
Compile issues, draw up annual targets and draft action plans
Track and review target completion on a quarterly basis
Compile the information submitted by each working group
Review execution and evaluate improvement plan for unfulfilled targets
Discuss and revise annual targets and draft action plans
Report CSR implementation results for the year
Evaluate annual targets and announce the implementation of action plans
CSR Committee Working Groups CSR administration unit
CSR Committee administration unit CSR Committee
CSR Committee Working Group Meeting Board of Directors
CSR Committee
4 Stakeholder identification and communicationThe opinions of stakeholders have served as the guiding principle for FFHC's sustainable development strategy since the first CSR Report was published in 2011. The process of compiling the Environmental (E), Social (S) and Governance (G) issues of concern to stakeholders is used to internalize the issues as the corporate sustainability targets. The themes and aspects of sustainability of concern to stakeholders also form the basis for authoring this report.
To promote better stakeholder communications, we embraced the spirit of the AA1000 Accountability Principle Standard by convening the CSR working groups on corporate governance, customer care, employee care, environmental sustainability and charity for joint discussion and identification of stakeholders. Group stakeholders were then divided into seven categories based on the experiences of each business unit and the finance industry as shown as follows.
EmployeesUnionRetired employees
Customers Media
ShareholdersInvestorsAnalysts
Suppliers G o v e r n m e n t a n d competent authorities
CommunityNon-profit organizationsNon-government organizationsAcademics and experts
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STEP 2
STEP 3
STEP 4
STEP 5
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Compilation of sustainability issues
Stage 1 screening
In stage 2, the issues were analyzed and a materiality analysis matrix created
Response to the issues were then compiled in accordance with the materiality analysis matrix
To ensure that the practice of CSR is in keeping with developing trends, CSR Committee working groups compiled 51 CSR sustainability issues of concern to domestic and overseas government/non-government organizations, financial industry peers and each stakeholder type.
Executives from group companies led by the president of FFHC examined each issue based on their "impact on group operations" and their "level of concern" to stakeholders to select 45 issues of concern to stakeholders.
The conveners, executive directors and members of each CSR Committee WG were then asked to use the stakeholder identification survey to evaluate the level of concern to each stakeholder and impact on group operations. The issues were then arranged by the level of stakeholder concern then used to produce the "List of Stakeholder Communication Channels and Issues of Concern" as well as the "Materiality Analysis Matrix."
After analyzing the 45 issues of concern using the matrix method, 3 issues of low stakeholder concern and low impact on group operations were eliminated. The 42 issues of medium-high concern/impact were chosen as the issues to respond to. A total of 43 material aspects (including 40 specific standard disclosures and 3 financial services sector-specific disclosures) were identified and approved by the "CSR Committee."
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STEP 6
STEP 7
Ensuring that the report encompasses all material aspects
Serving as the guiding principle for company planning on sustainability
The CSR Report is authored by each CSR Committee WG based on the approved disclosure indicators and material aspects then collated by the administrative unit before being submitted to the Chairman for review.
To ensure that the CSR implementation of FFHC reflects stakeholder expectations, the results of the above analysis are not only used for disclosure in the report but also serve as the guiding principle for company planning on sustainability.
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4-1 Materiality analysis matrix for issues of concern
Level of stakeholder concern
Impact on Group operations
High x Low
High x Moderate Moderate x High
Moderate x Moderate
Low x Moderate
Low x Low
Moderate x Low
High x High
Responding to the Greenhouse Gas Reduction and Management Act, and to the Indoor Air Quality Act
Complaints mechanismGreen service process innovation and improvementCommunication channelsGreen finance product innovation and improvementTraining and development
Shareholder equityCorporate governanceStrategy and managementProduct and service quality
Audit systemGreenhouse gas and carbon emissionsEnergy conservation and carbon reduction initiativesHuman rights protection Independence and professionalism of board directors Occupational safety and healthGreen partnersGreen purchasingCompensation and benefitsGreen responsible investmentFair and transparent purchasing
Care for female employees
Employee transportationRetired employee careCare for employees' next-of-kin
Implementation of inclusive financeEnvironmental impact from operationsWater resource managementProviding a friendly office environmentSupport for minoritiesEcological and environmental sustainability
Ethical corporate managementProtection of customer privacyProduct riskInformation disclosureRegulatory complianceRisk management
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363738394041
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The 45 issues of concern selected by top executives are scored and then compiled into a materiality analysis with level of stakeholder concern as the X-axis and the impact on group operations as the Y-axis as shown below. Based on the materiality analysis matrix the three issues "Employee transportation", "Retired employee care" and "Dependent care" were eliminated due to their low level of stakeholder concern and low impact on group operations. The 42 issues listed as medium-high level of concern/impact were chosen for response on related management direction and execution and implementation outcomes.
Business performance and profitabilityEmployee conduct and integrityCustomer satisfaction improvement
Community buildingArt and cultural activitiesGreen initiativesCharitable donationsSporting promotion
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Relevant Liable Persons Communication channel and frequency Communication highlights and accomplishments
Employee complaint hotline, fax, e-mail/StandingEmployee forum on internal website/StandingMorning/evening business unit meetings/Ad hoc"Whistleblower section", "Supervisor mailbox", "President's mailbox" and "Ideas mailbox"/ StandingSexual harassment complaint hotline, fax, e-mail/StandingEmployer/employee meeting/MonthlyEmployee Welfare Committee, Labor Safety and Health Committee, Labor Pension Oversight Committee/QuarterlyRevision of collective bargaining agreement/Every 3 years
Explicitly require vendors to conform to labor and environmental laws and regulations in purchasing requirements and contracts / Review before tendering, Audit at and after contract signing
Convening of general shareholder meeting, publication of annual report and CSR report / YearlyBusiness performance report / Monthly and quarterlyHosting of investor seminars / QuarterlyVideos of investor seminars are concurrently published on our corporate website for viewing by investors / Standing and retained for one yearPublication of corporate governance, investor seminar presentations, financial information, press releases and related investors affairs in both English and Chinese on the corporate website / Ad HocTelephone and e-mail of the spokesperson and investor relations department available from the corporate website's investor services section / PermanentStakeholder survey in the corporate website's CSR section / PermanentAttend investor seminars at the invitation of securities brokers to communicate with investors / Ad hoc
Record profits/ Net after-tax profits in 2015 reached NT$15.962 billion, a new record.NT$23.5 billion capital increase by cash/ In response to the investor opinion that our company was weak on capital, a NT$23.5 billion capital increase by cash was carried out as part of our push to become a regional financial institution in Asia.Upgraded credit ratings/ Credit rating agencies such as Standard & Poor, Moody's and Taiwan Ratings upgraded our credit ratings. First Bank was also promoted to the ranks of A-list banks.
Green purchasing / Green purchasing amounted to NT$123.68 million and resulted in recognition for excellence in green purchasing
Substantial salary increases / First Bank introduced substantial salary increases of 3% across the board, First-Aviva Life Insurance was also recognized by the Financial Supervisory Commission as "2015 Benchmark Insurance Company for Salary Increases"3.15 times / Employees are paid an average monthly salary that is 3.15 times the statutory minimum, which places the Company among "Taiwan High Compensation 100 Index"3rd Collective Bargaining Agreement / First Bank and the Union held a signing ceremony for the 3rd collective bargaining agreement providing female employees with maternity leave 6 weeks before or within 14 weeks of the expected delivery date without requiring a doctor's certificate.
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Employees /Union /Retired employees
Shareholder /Investor /Analyst
Suppliers
4-2 List of stakeholder communication channels and issues of concern
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Relevant Liable Persons Communication channel and frequency Communication highlights and accomplishments
All of our Group subsidiaries have customer complaint channels such as business units, customer service hotlines and e-mail on the website / PermanentConduct customer satisfaction surveys through telephone surveys, e-mail surveys, webpage or outside survey firm / Ad hocAccounts, latest financial information, event information etc. / StandingStatement on Protection of Customers' Data / Ad hocHosting of wealth management and investment seminars, industrial park seminars; customer relationship management / Ad hocHosting of service role-model competitions to improve the quality of customer service/ Annual
Hosting of art exhibitions and concerts / RegularHosting of blood drives, beach clean-up, mountain clean-up, health seminar, rural charity health clinics and greet-the-dawn events / Ad hocSponsorship of tennis, table tennis, swimming, road run, baseball and other sporting activities / Ad hocCharity volunteer activities such as donations, show of support and environment/organic practices / Ad hocUK Carbon Disclosure Questionnaire/ AnnualParticipation in CSR-related foundations / Ad hoc
Digital Banking Division/ The Electronic Finance Division was reorganized into the Digital Banking Division with a team of professionals dedicated to upgrading our digital financial service capabilitiesDigital branch / "Digital Banking Experience Area" introduced in branches. The first "Virtual Teller Machine" in Taiwan was also installed to provide customers with modern, high-tech business premises and service.Improved insurance coverage for citizens/ Strong emphasis on insurance coverage for citizens saw First-Aviva Life Insurance recognized by the Financial Supervisory Committee as an "Improved Insurance Coverage for Citizens Program" insurance company for the 15th consecutive year.
Responding to the CDP / The Company's 2015 CDP score exceeded the worldwide industry averageStakeholder survey / A stakeholder survey was placed on the corporate website to gain a better understanding of stakeholder expectations and requirementsPromotion of corporate sustainability education / Became a founding member of the Center for Corporate Sustainability to help promote the sustainable development of Taiwanese enterprises
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Community /Non-profit organization /Non-government organization /Academics and experts
Transparency of tender information and publication on corporate website / Ad hocRequire companies that sell fund and insurance products through the bank to have compiled CSR reports or issued a CSR declaration / Before listing
3-Step supplier management process / In 2015 100% of new suppliers underwent screening on environmental and human rights.Foreign supplier management and evaluation / Starting in 2015 overseas sites began establishing supplier evaluation mechanisms as well. 280 foreign suppliers have been evaluated to date to help protect the local environment
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Internal
Head Office
Subsidiaries Shareholders /Investors / Analysts
Government and competent authorities
Medias
Customers Suppliers Community/Non-profit organizations/
Non-government organizations/
Academics and experts
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D
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External
Relevant Liable Persons Communication channel and frequency Communication highlights and accomplishments
Participate in seminars, symposiums, public hearings, competitions and evaluations hosted by the competent authorities / Ad hocCompliance with the relevant laws and policies of the competent authorities and cooperate with their monitoring and inspections / Ad hocDisclose business-related information on the Market Observation Post System and corporate website / Ad hocParticipate in Earth Day and Meat-Free Day movement, and the promotion of environmental protection through advertising screens and tickers at business units / Standing
Participation in assessments, seminars and conferences / Ad hocEstablish a spokesperson and PR department for liaising purposes / StandingHosting of press conferences and issuing of press releases / Ad hoc
Commonwealth Magazine Corporate Citizenship Awards / 9th Place in the large enterprises categoryGlobal Views Corporate Social Responsibility Awards - Excellence Award in the Environmental Friendliness categoryWealth Magazine's Taiwan Financial Award / Financial Holding CSR Special Award
Corporate governance evaluation for listed companies / Proactive action on corporate governance evaluation indicators led to inclusion in the Top 10 for two consecutive yearsTaiwan Employment Creation 99 Index / Chosen for inclusion in the index for 6 consecutive years through creation of job opportunities recruiting of local employeesParticipation in government competitions / Actively took part in competitions organized by government agencies winning many awards including "Enterprise Environmental Award - Gold Award", and "National Environmental and Education Awards - Distinction Award in the Private Enterprise Division"
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Government and competent authorities
Media
4-3 Issues of concern and material aspects
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Information disclosureBusiness performance and profitabilityStrategy and managementShareholder equityIndependence and professionalism of board directors
Support for minoritiesImplementation of inclusive financeGreen finance product innovation and improvement
Energy conservation and carbon reduction initiatives
Water resource management
Greenhouse gas and carbon emissionsResponding to the Greenhouse Gas Reduction and Management Act, and to the Indoor Air Quality Act
Environmental impact from operations
Green purchasingGreen responsible investmentGreen partners
Economy/Economic performance
Economic/Indirect economic impact
Environment/Products and Services
Financial services sector disclosure/Product portfolio
Environment/Energy
Environment/Water
Environment/Emissions
Environment/Compliance
Environment/Environmental complaints mechanism
Environment/Wastewater and waste
Economy/Procurement practice
Environment/Overview
Society/Human rights/Investment
Financial services sector disclosure/Active ownership
Sustainable governance -First Performance - Rewarding shareholders p.22
Social harmony -First Care - Love for Taiwanp.112
Green finance -First Energy - Protecting the planetp.52
Green finance -First Energy - Protecting the planetp.58
Green finance -First Energy - Protecting the planetp.56
Green finance -First Energy - Protecting the planetp.53
Green finance -First Energy - Protecting the planetp.64
12
345
12
3
1
1
1
2
1
12
3
A B
A B
A B
A B
A B
A B
A B
A B
A B
A B
A B
A B
A B
A B
C D E
F G H
C D F
G H
F G H
F G
F G
F G
F G
F G H
C D F
G H
C D F
G
E G
E F G
D E F
G
C D E
F G
Issue of concern G4 Material Aspect Internal | ExternalReport chapter & Corresponding page in Management Direction
18
A B
A B
A B
A B
A B
A B
E F G
H
E F G
E F G
E F G
E F G
E F G
H
Compensation and benefits
Training and development
Care for female employeesHuman rights protectionComplaints mechanismCommunication channels
Supply chain managementComplaints mechanism
Economy/Market image
Society/Labor practices/Employer-employee relations
Society/Labor practices/Gender equality on pay
Society/Labor practices/Training and education
Society/Labor practices/Employer-employee relations
Society/Labor practices/Employment diversity and equal opportunity
Society/Human rights/Coerced and compulsory labor
Society/Human rights/Indigenous rights
Society/Human rights/Assessment
Society/Human rights/Freedom of association and collective bargaining
Society/Human rights/Security practices
Society/Labor practices/Labor practices complaint mechanism
Environment/Supplier environmental assessment
Society/Labor practices/Supplier assessment for labor practices
Society/Human rights/Non-discrimination
Society/Human rights/Child labor
Society/Human rights/Supplier human rights assessment
Society/Human rights/Human rights complaint mechanism
Happy workplace -First Compensation - Diverse benefitsp.80
Happy workplace -First Training - Talent Cultivationp.97~98
Happy workplace -First Workplace - Friendly environmentp.91~92
Green finance -First Energy - Protecting the planetp.65~66
1
1
1234
12
Issue of concern G4 Material Aspect Internal | ExternalReport chapter & Corresponding page in Management Direction
A B
A B
A B
A B
C G H
D G
F G
F G
A B
A B
A B
A B
A B
A B
A B
A B
F G
F G
F G
F G
F G
F G
F G H
F G H
2015
4-3
First Financial Holding CSR Report
Corporate Social Responsibility and Stakeholder Com
munication
19
A B
A B
A B
A B
A B
A B
A B
A B
C F G
H
C D G
H
C D G
C D G
C D F
G
C D G
H
C D F
G
C D F
G
Occupational safety and healthProviding a friendly office environment
Community buildingCharitable donationsArt and cultural activitiesSporting promotionGreen initiatives
Fair and transparent purchasingEthical corporate managementEmployee conduct and integrity
Corporate governanceRegulatory complianceRisk management
Product riskProduct and service qualityGreen service process innovation and improvement
Customer satisfaction improvement
Protection of customer privacy
Society/Labor practices/Occupational safety and health
Society/Society/Local community
Society/Society/Anti-corruption
Society/Society/Public policy
Society/Society/Social compliance
Society/Society/Complaint mechanisms for impacts on society
Financial services sector disclosure/Audit
Society/Product liability/Regulatory compliance
Society/Product liability/Marketing communication
Society/Product liability/Product and service labeling
Society/Product liability/Customer privacy
Happy workplace -First Workplace - Friendly environmentp.92
Social harmony -First Care - Love for Taiwanp.112
Sustainable governance -First Integrity -Risk managementp.42~43
Sustainable governance -First Governance - Exceptional managementp.33
Green finance -First Security - Safeguarding customersp.72
Social harmony -First Service - The Customer Come Firstp.107
Green finance -First Security - Safeguarding customersp.73~74
1
2
12345
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2
3
123
123
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1
Issue of concern G4 Material Aspect Internal | ExternalReport chapter & Corresponding page in Management Direction
A B
A B
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C G
F G H
C D E
G
In 2015 our company's paid-in capital amounted to NTD 114.611 billion with consolidated assets of NTD 2.50 trill ion, consolidated income of NTD40.848 billion and net earnings after tax of NTD 16.006 billion. Return on Assets (ROA) in 2015 was 0.66%, Return on Equity (ROE) was 9.32% and Earnings Per Share (EPS) was NTD 1.55.
The Xiamen branch opened in 2015 Q2. All business locations in China have received approval to offer RMB services. In ASEAN, the Vientiane branch in Laos opened in 2015 Q1 while the Mean Chey branch and Chraoy Chongvar branch in Cambodia opened on January 27, 2016. Our ASEAN presence now covers the whole of the Indo-China Peninsula forming an extensive service network that will help expand our local financial market.
We are ahead of other domestic financial competitors in the transnational payment sector with four firsts. The spirit of "Growth", "Innovation", "Sustainability" and "Improvement" in business management and sales development shall continue to guide our expansion and steady growth. We wil l also continue to engage with society in different ways to enhance our corporate image on sustainability.
Connecting with the Asia-Pacific, integration and
transformation
Management results and economic performance
Sustainable Governance
20
Strengthening corporate governance and enhancing
international image
Establishment of ethical corporate management
policy and strengthening internal controls
An Ethical Management Committee reporting directly to the Board of Directors was established to provide oversight of all ethical management matters and to ensure the effective implementation of the ethical management policy. Continued to receive recognition through domestic corporate governance awards. We were also ranked in the top ten by the corporate governance evaluation for TWSE/GTSM-listed companies for the second consecutive year.
Our directors have altogether accumulated 166.5 hours of learning on corporate governance-related courses. Attendance of the Board of Directors and functional committees (Audit Committee, Remuneration Committee and Ethical Management Committee) was 95% and 100% respectively.
The Ethical Management Principles and Code
of Conduct define the ethical management policy for all Group companies to follow. It also enhances the culture and development of ethical management throughout the Group. In 2015, an assessment of corruption risks was conducted by all group subsidiaries and their business locations. Anti-corruption training was also organized for all employees to enforce the three layers of internal controls. There were no punitive actions levied against the Group for corruption or violation of fair trading laws in 2015.
21
1
First Performance- Rewarding shareholders
1-1 Connecting with the Asia-Pacific and online financeThe Group has been actively expanding our overseas presence in recent years. The core subsidiary First Bank serves as the spearhead of our dual-pronged overseas development strategy of "west into China, south towards ASEAN." Our focus is on the finance opportunities in the Asia-Pacific region. To expand our financial service network in China which already includes the Shanghai branch, Chengdu Branch, and Shanghai Pilot FTZ sub-branch, the Xiamen branch (our third branch in China) opened its doors in 2015 Q2. All business locations in China have now received approval to offer RMB services. We can now provide Taiwanese companies and local customers with more complete financial services. The results have been quite positive to the south in ASEAN as well. The Vientiane branch in Laos opened in 2015 Q1 while the Mean Chey branch and Chraoy Chongvar branch in Cambodia opened on January 27, 2016. Our ASEAN presence now covers the whole of the Indo-China Peninsula forming an extensive service network that will help expand our local financial market, realize localized management and bring us closer to the goal of being "a regional financial institution in Asia."
Apart from the excellent progress in our overseas strategy, we are also ahead of our domestic competitors in the financial industry in the transnational payments sector. We have secured four firsts including: First domestic bank to receive regulator approval to apply for WeChat
Pay, first to secure WeChat Pay contract, first to offer WeChat Pay services, and first to activate an WeChat Official Account. In 2016 our Group's business strategy will continue with the "expansion in size and reinforcing of strengths" strategy from 2015. Further integration and transformation will take place with emerging FinTech used to enhance the "breath" and "depth" of traditional financial services. Through transnational integration, market penetration and digital finance, we will emphasize the spirit of "Growth", "Innovation", "Sustainability" and "Improvement" in business management and sales development. "Growth, Innovation and Sustainable Development" will serve as the core strategy of the Group in 2016. A strategy of "Growth and innovation" will be used to cater to industry transformation and upgrades in the domestic and overseas market as, the trend towards regional trade and economic integration, and the business opportunities derived from One Road, One Belt and RMB internationalization. In keeping with the trend towards digital finance, we will enhance our digital channels and transnational value chain services while continuing to expand our size and realize steady growth; at the same time, we will cultivate customer segments and channels while also engaging in business organization and capital restructuring. We will continue to engage with society in different ways and enhance our corporate image on sustainability in order to realize the goal of "sustainable improvement."
The slowdown in the global economy as well as recent fluctuations in the international financial market and rising geopolitical risks have all added increasing uncertainty to the international economy. In 2015, domestic regulators also began encouraging banks to invest in FinTech (financial technology). Many information service and network technology companies have therefore become a part of the FinTech industry as well. The finance industry chain has therefore expanded to include the information industry, changing not only the ecology of finance operations but also breathing more energy and diversity into the industry. Financial institutions must now think very carefully about their business strategy, future development trends and employee transformation.
1-1 Connecting with the Asia-Pacific and online finance
1-2 Group organization and business performance
1-3 Operating regions and countries
1-4 Shareholder structure
1-5 Financial and economic performance
22
69.65% 87.68% 95.64%
4.02%
-0.34%
0.65%
6.93%
4.32%
1.06%
Taiwan Banks
20.81%Asia Securities
9.53%
America Insurance
Other Other
Sort by revenue source By location By industry
Net interestrevenue
Other net income
Net fees and commissions
1-2 Group organization and business performanceLed by First Bank, the Group's core activities and profits all continued to grow steadily. Profits have surpassed the NTD10 billion mark for four consecutive years and achieved growth in the futures. Apart from completing an capital increase by cash of NTD23.52 billion and using the raised funds to strengthen First Bank's capital structure, expand its scale and increase its buying power overseas, the move also led to credit agencies such as Taiwan Ratings and Standard & Poor both upgrading the credit ratings of our Company, bank and securities subsidiaries; in channel integration, integrated marketing reported record profits once more and growth up to 23%.
In 2015 our company's paid-in capital amounted to NTD 114.611 billion with consolidated assets of NTD 2.50 trillion, consolidated income of NTD40.848 billion and net earnings after tax of NTD 16.006 billion. Earnings per share after tax was NTD1.55.
Features
China strategy
Channel integration
Overseas strategy
Raised NTD23.52 billion through issuance of 1.6 billion common stock for cash. The amount was re-invested in the banking subsidiary to supplement operating funds. Credit rating upgraded by Taiwan Ratings and Standard & Poor
Bank branch in Xiamen began operating in 2015 Q2Approval granted to all bank offices in China to offer RMB services
Integrated marketing delivers record profits and 23% growthGranted approval to conduct O2O transnational electronic payments as a financial institution. Outlook on transnational agency profits continues to improve
Vientiane bank branch opened in 2015 Q1Phnom Penh bank branch given approval to open Mean Chey and Chraoy Chongvar sub-branches which opened in January 2016Full bank coverage of the Indo-China PeninsulaTransnational platform boosts synergies from domestic and overseas sites
Sustainable Governance
1-11-2
23
Implementedprojects
China strategy
Channel integration
Features
Overseas strategy
Organizational relationship chart
First Financial Holding Co., Ltd.
First Commercial Bank First Commercial Bank (U.S.A.)
FCB Leasing Co., Ltd.
First Insurance Agency Co., Ltd.
First Capital Management Inc.
FSC Asia Investment Limited
First Financial Assets Management (B.V.I.) Ltd.
First Financial Assets Management Co., Ltd.
First Securities Inc.
First Property & Casualty Insurance Agency Co., Ltd.
First Securities Investment Trust Co., Ltd.
First Venture Capital Co., Ltd.
First Financial Management Consulting Co., Ltd.
First-Aviva Life Insurance Co., Ltd.
Share Ratio: 100%
Shareholding: 8,624,400,000 shares
Original investment: NTD 94,289,806,000
Share Ratio: 100%
Shareholding: 7,000,000 shares
Original investment: USD 70,000,000
Share Ratio: 100%
Shareholding: 300,000,000 shares
Original investment: NTD 3,000,000,000
Share Ratio: 100%
Shareholding: 5,000,000 shares
Original investment: NTD 50,000,000
Share Ratio: 100%
Shareholding: 10,000,000 shares
Original investment: NTD 89,304,000
Share Ratio: 100%
Shareholding: 1,000,000 shares
Original investment: USD 1,000,000
Share Ratio: 100%
Original investment: USD 30,000,000
Share Ratio: 100%
Shareholding: 145,000,000 shares
Original investment: NTD 1,450,000,000
Share Ratio: 100%
Shareholding: 640,000,000 shares
Original investment: NTD 5,303,851,000
Share Ratio: 100%
Shareholding: 300,000 shares
Original investment: NTD 3,000,000
Share Ratio: 100%
Shareholding: 60,000,000 shares
Original investment: NTD 1,061,461,000
Share Ratio: 100%
Shareholding: 180,000,000 shares
Original investment: NTD 1,800,000,000
Share Ratio: 100%
Shareholding: 2,000,000 shares
Original investment: NTD 20,000,000
Share Ratio: 51%
Shareholding: 114,750,000 shares
Original investment: NTD 1,147,500,000
24
First Financial Leasing (Chengdu) Ltd.
First Worldsec Securities Limited
FCBL Capital Int'l (B.V.I.) Ltd. FCB International Leasing Ltd.
FCB Lease (Xiamen) Ltd.
Share Ratio: 100%
Original investment: USD 30,000,000
Share Ratio: 100%
Shareholding: 66,000,000 shares
Original investment: HKD 66,000,000
Share Ratio: 100%
Shareholding: 60,050,000 shares
Original investment: USD 60,050,000
Share Ratio: 100%
Original investment: USD30,000,000
Share Ratio: 100%
Original investment: USD30,000,000
First Financial Holding CSR Report
2015
1-2
Sustainable Governance
25
Bank : Singapore Branch, Ho Chi Minh City Branch, Hanoi City Branch, Bangkok Office, Yangon Office, Phnom Penh Branch and its Chorm Chaov Sub-branch, Olympic Sub-branch, Chamkar Mon Sub-branch, Tuol Kouk Branch, Mean Chey Branch (opened in January 2016), Chraoy Chongvar Branch (opened in January 2016) and Vientiane Branch (Laos)
Bank: Tokyo Branch
Bank : London Branch Bank : Guam Branch, Brisbane Branch
Total sites
Europe Oceania
Southeast Asia
Northeast Asia
1-3 Operating regions and countries
FFHC Headquarters is located at No. 30, Sec. 1, Chongqing S. Rd., Taipei City. It has both local and overseas offices in Taiwan, Americas (U.S., Canada), China/Hong Kong/Macao (Hong Kong, Macao, Shanghai, Chengdu, Suzhou, Xiamen), Southeast Asia (Singapore, Vietnam, Thailand and other under-developed regions: Myanmar, Cambodia, Laos), Northeast Asia (Japan), Europe (U.K.), and Oceania (Guam, Australia). The Group has 9,210 employees in total.
Bank : Los Angeles branch, New York branch, Vancouver branch, and Toronto Branch; First Commercial Bank (U.S.A.) branch and its 7 sub-branches including the Alhambra Branch, City of Industry Branch, Silicon Valley Branch, Irvine Branch, Arcadia Branch, Artesia Branch and Fremont Branch
Bank : Hong Kong Branch, Macao Branch, Shanghai Branch, Shanghai Pilot FTZ Sub-branch, Chengdu Branch, Xiamen Branch
Securities : First Worldsec, First Worldsec Shanghai Office
Leasing : FCB Lease (Chengdu), FCB International Leasing (Suzhou), FCB Lease (Xiamen)
Americas
Asia
China/Hong Kong/Macao
Banks x 34 Leasing x 3Securities x 2
3926
First Bank is the second largest bank in Taiwan in terms of branch count and has 190 business locations throughout Taiwan. Our operations cover both urban and rural regions to communicate to the general public our brand image and service philosophy of "Close to Your Home." Sites are chosen with consideration to the local social and environmental impact. In remote regions such as Nantou, Pingtung, Hualien, Taitung and Penghu we have a total of 11 offices and 88 automatic teller machines (ATM) that can provide the full spectrum of financial services at any time.
First Bank branches in Taiwan
Above 50
30 ~ 50
10 ~ 30
Below 10
Banks x 34 Securities x 2 Leasing x 3
First Securities has 26 subsidiaries and 131 securities counters throughout Taiwan. In remote regions such as: Penghu, Nantou and Pingtung, we have a total of 6 offices for providing "personalized" investment services to the general public.
First-Aviva has established 20 insurance counters at First Bank business locations in Taipei, New Taipei, Taoyuan and Kaohsiung. These are on hand to answer customer inquiries on insurance and to provide convenient services.
Total sites
Business locations
190
First Financial Holding CSR Report
2015
1-3
Sustainable Governance
27
Note 1: Profit or loss after tax and earnings per share does not include non-controlling interests.Note 2: The financial data and ratios were all prepared in accordance with IFRS.Note 3: Employee welfare expenses were calculated against the "Taiwan High Compensation 100 Index".Note 4: Grandson companies not included in the consolidated financial company include First Financial AMC B.V.I., and FCB Leasing B.V.I.
7
1,865,682,345
16
1,582,050,112
697
2,483,986,636
884
875,709,123
279,807
4,653,678,165
Persons
Shares held
Persons
Shares heldPersons
Shares held
Persons
Shares held
Persons
Shares heldas of April 26, 2016
Financial institutions
Government institutions
Foreign institutions and
individuals
Shareholding ratio
Other institutional
Individuals
Our Group's net income after tax for 2014 and 2015 were NTD 14.085 billion and NTD 16.006 billion respectively.
Earnings per share were NTD 1.52 and NTD 1.55.
Share dividend/Tax amount
1-5 Financial and economic performance
21.67%
40.61%
16.28%
13.80%
7.64%
1-4 Shareholder structure
2015 2014
2,500,095,812
2,312,108,826
187,986,986
16,006,088
14,379,517
1,568.28
0.66
9.32
39.08
1.55
2,355,708,683
2,201,332,129
154,376,554
14,084,936
13,801,099
1,533.46
0.61
9.53
41.18
1.52
28
Unit : 1000NT
Unit : %
Operating ability
Profitability
Assets
Total liabilities
Shareholders equity
Profit or loss after tax
Employee welfare expenses
Average employee welfare expenses
ROA (%)
Return on Ordinary Shareholders' Equity (%)
Profit ratio (%)
Earnings per share (NTD)
Cash dividends per share (NTD)
Dividends per share (NTD)
Income tax paid (Thousand NTD)
Retained earnings (Thousand NTD)
0.95
0.45
2,473,401
38,461,016
0.7
0.65
2,224,157
35,553,081
2015 2014
2To uphold the spirit of "a century of tradition and innovative service" and carry on the values of an outstanding corporate culture, a brand new corporate identity system was launched to represent the image of a modern, open and lively financial institution. Gold and
Note: ROA and ROE in the above graph are based on the audited after-tax profits; it does not include EPS. If the impact of cash capital increase is excluded (capital increase baseline date: 2015/9/18) then actual ROE was 10.01% and EPS was NTD1.62.
Profit performance trends in the last five years - ROA, ROE, EPS
ink green have been chosen as the common colors of FFHC and subsidiaries. The two interlocking curves form the basic motif of a round copper coin. Gold symbolizes the accumulation of wealth, status and leadership, ink green symbolizes the circle of life and the sustainability of green finance. The square within the circle demonstrates the steadfastness and professionalism of the leaders.
2-1 Brand spirit and management
2-1 Brand spirit and management
2-2 Products and services
2-3 Credit rating
2-4 Participation in local and overseas organizations
First Brand - Innovative service
1-42-1
Sustainable Governance
1.081.25 1.26
1.52
1.62
1.55
EPS
2011 2012 2013 2014 2015
0.36%
0.48%
0.66%0.61%
0.50%
ROA
2011 2012 2013 2014 2015
6.38%
7.73% 7.94%
9.53%10.01%
9.32%
ROE
2011 2012 2013 2014 2015
29
Its vertical orientation conveys readiness and a positive attitude. The three-dimensional symbol emphasizes the variety of group products and services as. It also gives our company's pioneering ambitions a modern touch.
Advances in network and communications technology means its application to cash flow services have become increasingly mature. Apart from using IT security technologies to ensure the confidentiality and integrity of transactions, it has also given added impetus to e-commerce, digital equipment upgrades and mobile payment. By using cross-industry alliances to extend cash flow services beyond physical channels and the development of new businesses to maintain the expandability of the system, a quick, convenient and secure virtual channel platform can be forged. Active physical and virtual integration along with the building of an innovative financial service ecology will reach out to young customers of the e-generation and cultivate the existing customer base. An innovative design, willing to experiment and readiness to take responsibility form a secure and sustainable environment that continues to revitalize the brand and shape FFHC's image as a professional and high-quality financial brand.
Pioneering strategy and innovative thinking are being used to promote charitable initiatives and set a good example of giving back to society. In keeping with the spirit of "local care", our subsidiaries are actively reaching out to disadvantaged groups, helping people realize their dreams, participating in charitable enterprises, embracing the spirit of cooperation, and realizing everyone's ideals on public welfare. Together, we are creating and communicating love while also incorporating gratitude, service, hope and growth into the careers of every employee. We also support environmental protection, environmentally sustainable development, and sowing the seeds of goodness in every corner to turn our Group into the No.1 brand in green finance.
2-2 Products and services
2-3 Credit rating
Use a framework where the First Bank subsidiary is the channel platform to expand services to the six main customer segments of SME, foreign exchange, financial planning, consumer finance and salary accounts. The "integration" philosophy will also be extended from "transnational integration" of domestic and overseas sites, to trans-channel and trans-product "integrated services." In keeping with the digital finance trend, the extension of FinTech applications as well as division of labor and integration of virtual-physical channels will be used to provide smart services and a superior finance experience. The convenience of financial service will be enhanced after strengthening all IT security measures. This will also ensure a consistent, high-quality service experience both online and offline.At the same time, big data and analysis of customers' consumption behavior will be leveraged to use innovative product designs and integrated marketing models (such as bank retirement trusts, reverse mortgages, investment funds, A+B+C life insurance models) that are cross-channel and cross-products will be used to satisfy the demand for total products throughout the life cycle of the target customer segment.
According to the 2015 credit rating reports issued by Taiwan Ratings, S&P and Moody's, our Group demonstrated in the financial industry a strong competitive advantage and stable business management; in the financial market, we have demonstrated very solid corporate fundamentals, an extensive customer base along with sound financial structure, risk control and excellent asset quality. The results from the long and short-term credit ratings as well as future outlook were as shown below:
30
2-4 Participation in local and overseas organizations
Our company and subsidiaries have joined the corresponding
industry associations for banking, securities, insurance, trusts,
investment trusts, investment consulting, industry agency,
venture capital and leasing to promote the development
of the domestic financial industry and enhance the overall
financial environment. Chairman Tsai is also the standing
director of the Bankers Association of the Republic of China
and The Bankers Association of Taipei. He has also been
the president of the Trust Association of R.O.C. since 2015.
Chairman Hsueh of First Securities Investment Trust is the
president of the Securities Investment Trust & Consulting
Association of the R.O.C.; at the same time, we also actively
participate in various domestic networking associations and
professional organizations to receive the latest economic
and financial information in Taiwan and from overseas. This
ensures the sustainable development of the Group's overall
business environment.
Note: Credit rating definitions can be found at the Moody’s (https://www.moodys.com), S&P (http://www.standardandpoors.com) and Taiwan Ratings (http://www.taiwanratings.com) websites.
In January 2013, First Bank became a member of BCSD
Taiwan with Chairman Tsai serving as a director to promote
and implement the CSR philosophy. This will help to realize
the goal of sustainable development through the promotion
of environmental protection and resource management, and
raise the quality of living in Taiwan. As there is a clear lack
of understanding on sustainability concepts and execution
talent among local companies, our Company donated
NTD280,000 in 2015 towards the establishment of the
Center for Corporate Sustainability. Chairman Tsai became
one of the founding directors as well and is actively involved
in helping the Center with promoting corporate sustainability
education and hosting international forums. We are
therefore contributing to the popularization of corporate
sustainability/CSR values and encouraging local companies
to embrace sustainable development.
1. Bankers Association of the Republic of China2. The Bankers Association of Taipei3. Center for Corporate Sustainability
1. Bankers Association of the Republic of China2. Trust Association of R.O.C.3. Securities Investment Trust and Consulting Association of the R.O.C.4. Taiwan Securities Association5. R.O.C. Bills Finance Association6. The Bankers Association of Taipei7. Asian Pacific Bankers Council8. Asian Bankers Association9. ICC Commercial Crime Services10. European Bank for Reconstruction and Development (EBRD)11. Taiwan Russia Association12. India-Taipei Association13. Taiwan Contact Center Development Association14. Turnaround Management Association15. Small and Medium Enterprise Guarantee Fund
First Financial
Holding
First Bank
Company Name Industry/Corporate sustainability non-government organization
First Financial Holding CSR Report
2015
2-12-22-32-4
Sustainable Governance
2015.10.5
2015.10.5
2015.6.9
31
Taiwan Ratings
S&P
Moody’s
twA-1+
A-3
-
twAA-
BBB
A3
Stable
Stable
Positive
Short-term Long-term Outlook Rating date
First Bank
First-Aviva LifeInsurance
First Securities
First Securities Investment Trust
First P&C Insurance Agency
First Venture Capital
Company Name
16. Agricultural Credit Guarantee Fund17. Chinese National Association of Industry and Commerce, Taiwan18. Joint Credit Information Center19. Taiwan Economic Association20. Factors Chain International21. National Association of Small & Medium Enterprises, R.O.C.22. Financial Planning Association of Taiwan23. Chinese International Economic Cooperation Association24. National Credit Card Center25. Overseas Credit Guarantee Fund (Taiwan)26. Chinese Financial Research Association27. Business Council for Sustainable Development of Taiwan (BCSD-Taiwan)28. Taiwan Energy Service Association (TESA)29. Chinese Taipei Table Tennis Association30. IT-enabled Services Management Association (itSMA)31. Taiwan Internet and E-Commerce Association (TiEA)32. The Institute of Internal Auditors, R.O.C.
1. The Life Insurance Association of the Republic of China2. Life Office Management Association (LOMA)3. The Actuarial Institute of the Republic of China4. Taipei Bar Association5. Society of Actuaries6. American Academy of Actuaries7. American Club Taipei (ACC)8. European Chamber of Commerce Taiwan (ECCT)9. British Chamber of Commerce in Taipei (BCCT)10. Taiwan Insurance Institute11. Taiwan Insurance Law Association12. Association of Certified Fraud Examiner13. Information Systems Audit and Control Association (ISACA)14. The Institute of Internal Auditors, R.O.C.15. Life Insurance Educational Foundation
1. Taiwan Securities Association2. Chinese National Futures Association3. Securities Investment Trust and Consulting Association of the R.O.C.4. Securities Association of China5. Shanghai Securities Association6. Shanghai Association of Taiwan
1. Securities Investment Trust and Consulting Association of the R.O.C.2. Pension Fund Association, R.O.C.
The Insurance Agency Association of the Republic of China
Taiwan Venture Capital Association
Industry/Corporate sustainability non-government organization
32
3
First Governance- Exceptional management
In response to international developments on anti-corruption, supply chain management, protection of business secrets, fair competition and whistle blower schemes, at the end of 2015 and beginning of 2015, the competent authority amended the "Ethical Corporate Management Best Practice Principles for TWSE/GTSM-Listed Companies" and "XXX Co., Ltd. Procedures for Ethical Management and Guidelines for Conduct" sample template. Our Company drew on these sources in defining our own "Ethical Management Principles and Code of Conduct" to serve as the guide ethical management by all Group subsidiaries. An "Ethical Management Committee" reporting to the Board of Directors was also established to provide oversight of all ethical management matters. The Committee is made up of all independent directors and it reports regularly to the Board on the company's implementation of the ethical management policy and reviews corrective actions to ensure that the policy is being effectively implemented; the Audit Division has also defined and published the "Guidelines for Handling of Whistleblower Cases" on the internal website to establish an open and transparent whistleblower scheme.
In 2015, our Company not only continued to receive domestic governance-related awards such as the
3-1 Board members
3-2 Operation of the Shareholders' Meeting and Board of Directors
3-3 Improving the professional competencies of the directors
3-4 Functional Committees of the Board
3-5 Compensation policy and its link to business performance and future risks
Commonwealth Magazine "Commonwealth Corporate Citizenship Award", the Taiwan Institute for Sustainable Energy's "TCSA - Transparency and Integrity Award" and Wealth Magazine's "Consumer Financial Brands & FHC CSR Award - Judges' Award". We also received the British Standards Institution's (BSI) "Environmental Sustainability Standards Annual Meeting - Sustainable Governance Award" and were once again in the top ten of the 2nd Corporate Governance Assessment for listed companies.
In 2016, apart from continuing to publish the bilingual version of the BSI-certified 2015 CR Report based on the GRI G4 Guidelines to provide local and foreign investors with equal access to information, we also plan to define regulations governing board performance assessments to strengthen the operational efficiency of the Board of Directors, enhance the Board's function and performance, and consider taking part in the Dow Jones Sustainability Indexes (DJSI) to improve our internationalization image. The corporate governance assessment indicators used by the TWSE will also serve as the top guiding principles in further improvements to corporate governance operations.
First Financial Holding CSR Report
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33
FFHC Corporate Governance Structure
Ethical Management Shareholders’
Board of Directors
Chairman
President
Vice President
Strategic Planning Division
Corporate Governance
Business
Business Development
Division
Risk Management DivisionTechnology DivisionDivision
Compliance and Legal Division
AuditDivision
EVPChief Compliance
Chief Auditor
President
Strategy Development
Risk Management Business Decisions
IT Development
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3-1 Board members
The 5th Board of Directors of our Company consists of 12 directors and 3 independent directors. 9 of the directors are made up representatives appointed by key shareholders the Ministry of Finance and the Bank of Taiwan which hold in excess of 5% shares. 4 of the directors and 1 independent director are women so they account for one-third of the Board membership. The directors serve for a term of 3 years. 4 are between 41 to 50 years of age and 11 are over 51 years of age. Directors possess extensive professional knowledge, business management ability and experience in fields such as banking, economics, accounting, insurance, statistics, finance, law and labor. The key shareholders Ministry of Finance and the Bank of Taiwan both regularly review and assess their board delegates.
Age Distribution of Directors Gender Distribution of Directors
73%Over the age of 51,11 people
27%41 – 50 years, 4 people
67%
Men, 10 people
33%
Women, 5 people
Title
Chairman
Name
Ching-Nian Tsai (MOF representative)
Academic background
M.S., Industrial Management, National Cheng Kung University
Chief, Financial Inspection, Bureau of Monetary Affairs, MOF; Chief Secretary and Commissioner of Securities and Futures Institute, MOF; Deputy Director-General, National Treasury Administration, MOF; Deputy Director, Bureau of Monetary Affairs, MOF; President, The Export-Import Bank of the Republic of China; Director-General, National Treasury Administration, MOF; President, Land Bank of Taiwan; Chairman, Taiwan Business Bank; Chairman, Taiwan Futures Exchange; Chairman, First Commercial Bank (U.S.A.)
Chairman, First Commercial Bank; Chairman, First Education Foundation; President of the Trust Association of R.O.C.
Current role in financial holding company and other companies
Director and President
Mei-Ling Cheng (MOFrepresentative)
B.S. Department of Business, National Taiwan University
Head of FFHC Corporate Planning Dept.; Head of Financial Services of First Bank; Manager and Vice President of First Bank Yuanshan Branch; Chairman of First Commercial Bank (U.S.A.); Director of First Insurance Agency; Director of First Securities Investment Trust; First chief commissioner of Financial Planning Committee of the Bankers Association
Director, First Bank; Director, Taiwan Asset Management Corp.; Director, First Education Foundation
41~5051
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Director
Director
Director
Hsien-Feng Lee (MOF representative)
Yi-Hsin Wang
(MOF
representative)
Hung-Chi Huang
(MOF
representative)
Ph.D., Economics, Bielefeld University, Germany
Advisory Committee Consultant, Council for Economic Planning and Development, Executive Yuan; Director, Farmers Bank of ChinaCurrent: Associate Professor of Economics, National Taiwan University; Director, Public Economic Policy Research Center, National Taiwan University
Ph.D. in Accounting from the University of Kentucky, U.S.A.
Associate Professor and Professor of Accounting at National Chung Hsing University; Editor-in-Chief, Editorial Committee, Institute of Internal Auditors, ROC (Taiwan); Executive Director, Institute of Internal Auditors, ROC (Taiwan); Professor, Dean of Library and Vice President, National Taipei UniversityCurrent: Professor of Accounting, National Taipei University
Ph.D. in Actuarial Science, Heriot-Watt University, U.K.
Actuarial Analyst, Actuarial Department, Cathay Life Insurance Company; Associate Manager, Tri-Better Enterprise Company; Reviewer of Insurance Products, Financial Supervision Commission, Executive Yuan; Consultant, Taiwan Civil Service Pension Fund Management Board; Advisory Committee Consultant of Risk Management Committee, Chunghwa Post; Dean & Professor, Dept. of Risk Management and Insurance, National Chengchi UniversityCurrent: Dean & Professor, Dept. of Risk Management and Insurance, National Chengchi University
Executive Director, First Bank; Director, Yuanta-Polaris Research Institute
Independent Director, BestCom Infotech Corporation; Independent Director, Transcend Information, Inc.
Director, First-Aviva Life Insurance Co.
Director Po-Chiao Chou (MOF representative)
B.S. Accounting, National Cheng Kung University
General Manager, Chief of Accounting Office, of First Bank West Tainan Branch, Head of General Affairs Dept. Vice President, First Bank West Tainan Branch; Advisor and of Head of Risk Mgmt. Div., Advisor and Head of Administration Div., Vice President, First Financial Holding; Chairman, First Venture Capital; Chairman, First Consulting Co., Ltd.; Supervisor, First Securities; Director, First Commercial Bank (U.S.A.); Director, First-Aviva Life Insurance
Executive Director and President, First Bank; Chairman of First Commercial Bank (U.S.A.); Chairman, First Education Foundation; Director, Taiwan Small Business Integrated Assistance Center; Director, Taipei Financial Center Corp.
Title Name Academic backgroundCurrent role in financial holding company and other companies
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First Financial Holding CSR Report
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Director
Director
Director
Director
Director
Feng-Ming Hao (MOF representative)
Hsiao-Ling Chen (Bank of Taiwan representative)
Tien-Yuan Chen (Golden Garden Investment representative)
Chi-Hsun Chang
Hsing-Jung Lo (Bank of Taiwan representative)
Ph.D. in Labor and Social Law, Paris II Pantheon-Assas University
Professor of Law, Head of Department, Dean of General Affairs, Dean of College of Law, and Vice President, National Chung Cheng University; Guest Professor, Academy for the Judiciary; Member, Bar Examination Committee, Ministry of Examination; Member, Labor Insurance Dispute Settlement Committee of Ministry of Labor Affairs, Executive Yuan; Member, National Health Insurance Fund Management Committee; Deputy Minister of Labor, Executive YuanCurrent: Vice Minister, Ministry of Labor
MA. in Economics, National Taiwan University
Section Chief, Ministry of Finance; Section Chief, Deputy Director, and Director, National Treasury Administration, Ministry of FinanceCurrent: Section Chief, National Treasury Administration, Ministry of Finance; Member, Water Resources Control Board, Ministry of Economic Affairs; Supervisor, Relief Disaster Foundation
B.A. Foreign Languages and Literature, Tamkang University
Chairman, Taiwan Coca-Cola Co.; Chairman, Golden Garden Investment Co.
B.S. International Trade, Tamkang University
Supervisor, Optimum Care International Tech Inc.; Director and President, Magna Central Company; Head of Sales Dept., Nan Ya Plastics Corporation
Bachelor's degree, Department of Accounting, National Chung Hsing University
Section Chief and Deputy Director of the National Treasury Administration, Ministry of Finance, Deputy Director of Finance Department, New Taipei City Current: Team Captain, National Treasury Administration, MOF
N/A
N/A
Executive Director, First Bank; Chairman, Golden Garden Investment Co.; Chairman, Golden Gate Motor Co.; Chairman, Golden Gate Investment Co.; Director, First Education Foundation
Chairman and President, Unitop Co., Ltd.
N/A
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Independent
director
Independent
director
Shyan-Yuan Lee
Hui-Ya Shen
Ph.D. Finance, Columbia University at NYC
Associate Professor, Department of Finance, National Taiwan University; Commissioner, Financial Supervisory Commission; Public Interest Director, TWSE; Independent Director, International Bills Finance CorporationCurrent: Professor, Department of Finance, National Taiwan University
MA. in Law, National Chung Hsing University
Lecturer, Department of Law, and Department of Trade and Finance, Fu Jen Catholic University; Supervisor, Radio Taiwan International; Committee Member, Securities and Futures Investors Protection Center; Consultant, Taiwan Civil Service Pension Fund Management BoardCurrent: Attorney, Chang Chun Attorneys-at-Law
Independent Director, TransAsia Airways Corporation
Independent Director, Taiwan Fertilizer Co., Ltd.
Director
Independent
director
An-Fu Chen (Global Investment Co., Ltd. representative)
Hao-Min Zhu
B.S., Pharmacy, Taipei Medical University
Director, Mingtai Fire & Marine Insurance Company; Vice President, TransGlobe Life Insurance Inc.; Vice President, Transamerica Occidental Life Insurance Co.
Ph.D. in Economics, Brown University, U.S.A.
Head of Finance Department, National Cheng Chi University; President, CTBC Financial Management College; Director, Taiwan Futures Exchange; Executive Director, Export-Import Bank of the ROC; director, Taiwan Financial Holding Company; Executive Director, Land Bank of TaiwanCurrent: Professor, National Cheng Chi University
Chairman, Global Investment Co., Ltd.; Director, Golden Rise Limited
Standing independent director, First Bank; Independent director, Wah Lee Industrial Corp.
Title Name Academic backgroundCurrent role in financial holding company and other companies
3-2 Operation of the Shareholders' Meeting and Board of Directors
During the 2015 general shareholders' meeting, the company reported our 2014 business performance and accounts verification process. The 2014 business report, consolidated report, distribution of dividends and conversion of earnings into new stock, and removal of non-compete clauses for the 5th Board of Directors were also voted on during the meeting. We responded to shareholder questions and adopted the candidate nomination system for the election of the 5th Board of Directors. A total of 12 directors and 3 independent directors were eventually elected for the 5th Board of
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Directors. Our company introduced electronic voting during the general shareholders' meeting in 2013. Utilization has exceeded 30% after three consecutive years of use, demonstrating our company's commitment to realizing shareholder activism.
Routine meetings of our Company's Board of Directors are convened once every month. Directors are also notified of the agenda 7 days in advance so issues can be properly discussed and opinions exchanged during the meeting. In 2015, the Board was convened 15 times and average attendance by all directors exceeded 95%. This reflected the active participation of directors in the company's management and their commitment to planning the company's future development. In 2015, the Board formulated or amended important company regulations such as the implementation rules for continuing education of directors, HR management regulations, work rules, common marketing rules for subsidiaries, asset ass and loss preparation guidelines, accounting policy for international financial reporting standards, budgeting and execution rules, employee compensation rules, internal audit system implementation rules, rules governing loans and transactions between the FFHC and subsidiaries with stakeholders, organic regulations of the ethical management committee, establishment rules of the labor pension fund supervisory committee, rules governing appointment of FFHC personnel to subsidiaries, procedure for suspension and resumption of trading, internal control system, Ethical Management Principles and Code of Conduct, and group national risk management rules; it reviewed the offer conditions, baseline date and pricing for the 2015 capital increase by cash, the 2015 final accounts and 2016 budget, the audit plan and retention of chartered accountants, and regularly reviewed the company's operations as well as the implementation of internal controls. Where a director's personal interests or the interests of the legal entity they represent may cause harm to company interests, all directors exercised a high level of self-discipline in excusing themselves from the subsequent discussion and voting.
Board Meeting Time Name of Director Motion Reason for conflict of interest and voting
2015.02.1233rd meeting of the 4th Board of Directors
Director Po-Chiao Chou
Change to subs id i a ry director
Director Po-Chiao Chou was the subject of the motion so excused himself from the discussion and vote.
Director Tien-Yuan Chen and Director An-Fu Chen were the subjects of the motion so they excused themselves from the discussion and vote.
As director and president, Mei-Ling Cheng was the subject of this motion so excused herself from the discussion and vote.
As director and president, Mei-Ling Cheng was the subject of this motion so excused herself from the discussion and vote.
Independent director Shyan-Yuan Lee, independent director Hao-Min Zhu and independent director Hui-Ya Shen were the subjects of this motion so excused themselves from the discussion and vote.
Removal of non-compete provisions for the Company 5th Board of Directors
Remuneration adjustment for company executives in 2015
Appointment of Company president
Salary adjustments for the Company management
Appointing the members of the Company's 3rd Remuneration Committee
Director Tien-Yuan Chen, Director An-Fu Chen
Director and President Mei-Ling Cheng
Director and President Mei-Ling Cheng
Independent director Shyan-YuanLee, Independentdirector Hao-Min Zhu, Independent director Hui-Ya Shen
2015.04.3035th meeting ofthe 4th Board of Directors
2015.05.2136th meeting of the 4th Board of Directors
2015.06.291st Meeting of the 5th Board of Directors
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3-3 Improving the professional competencies of the directors
3-4 Functional Committees of the Board
To strengthen the professional know-how of the Company's board directors and enhance the effectiveness of corporate governance, the Company adhered to the "Directions for the Implementation of Continuing Education Directors and Supervisors for TWSE Listed and TPEx Listed Companies" and our company's "Implementation rules for continuing education of directors" which required new or returning directors to undertake 12 hours and 6 hours of continuing education training each year respectively. Our directors actively took part in corporate governance-related training courses and seminars organized by professional institutions and completed a 166.5 hours of training in total during 2015.
The Taiwan Academy of Banking and Finance was commissioned to host two "Group Board of Directors and Supervisors Meeting Practices and Corporate Governance Class" sessions in December 2015
To enhance the corporate governance structure of the Company, the "Regulations Governing the Scope of Duties for Independent Directors" was defined in 2009. Three independent directors were elected in the same year during the general shareholders' meeting. The "Remuneration Committee" subsequently established in 2011, the "Audit Committee" established in 2012, and the "Ethical Management Committee" established in 2015 are all functional committees made up of all (3) independent directors. The committees issue decisions on potential conflicts of interest such as remuneration for directors and managers, financial reports and ethical management policy.
defining and regularly reviewing the policies and systems for evaluating executive performance as well as the remuneration policy, system, standard and structure. The remuneration of the directors and executives are therefore regularly reviewed and recommendations.
Assist the Board of Directors in its supervisory duties, and executing the duties specified by the Company Act and the Securities and Exchange Act. Items for review include the company’s financial statements, transactions for major assets or derivatives, offering or issuing equity-type securities, appointment, dismissal, and remuneration of CPAs, and the appointment and dismissal of financial, accounting, and internal audit managers.
Establishment and amendment of the Ethical Corporate Management policy at the company, and makes regular reports to the Board of Directors regarding the company’s implementation of ethical corporate management, as well as any necessary corrections.
Primary responsibilities of each functional committee
The number of times each functional committee was convened and the attendance rate of committee members in 2015 were:
RemunerationCommittee
Audit Committee
Ethical corporate practicesCommittee
Remuneration Committee Audit Committee Ethical corporate practices Committee
No. of meetings:4Committee attendance:100%
No. of meetings:7Committee attendance:100%
No. of meetings:1Committee attendance:100%
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First Financial Holding CSR Report
2015
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3-5 Compensation policy and its link to business performance and future risks
(1) Compensation package: Compensation for company directors include director's remuneration, monthly payment, health exam costs (reimbursement of actual costs up to NTD35,000) and travel costs (reimbursement of actual costs).(2) Compensation policy, decision procedure and its link to business performance and future risks:
(1) Compensation package: Compensation for the president and vice presidents includes the monthly salary, management allowance, professional allowance, employee compensation, bonuses, housing allowance, health exam costs and separation/pension payments.(2) Compensation policy, decision procedure and its link to business performance and future risks: To attract and retain quality talent for the Company and increase Group revenues, FFHC's employee salary, bonuses and payment standards are reviewed by the Remuneration Committee and Board of Directors. The amount of employee bonuses is based on a combination of profitability indicators, common marketing indicators, cost-reduction indicators, risk indicators and strategic indicators.Under Article 34, Paragraph 1 of the Articles of Incorporation, if the Company was profitable during the year then no more than 0.02% to 0.15% of the profits may be allocated as employees' compensation after deducting the employee and directors' bonuses from the pre-tax profits. Actual amount is based on the target completion rate in terms of pre-tax profits, earnings per share after tax, net yield and return on assets.In accordance with the aforementioned procedure, compensation for the Company's president and vice president are regularly assessed by the Remuneration Committee and recommendations made to the Board.
Director
President and Vice Presidents
Monthly payment:(a) On May 16, 2003, an extraordinary shareholders' meeting approved the allocation of NTD2,400,000 per month for directors' compensation. The Board was although authorized to set the compensation standard for each director within that amount; on the same day, the 6th Meeting of the 1st Board of Directors approved a monthly payment of NTD20,000 per person the Chairman's compensation is to be based on the total amount payable to the president multiplied by a factor of 1.25. Since the founding of the Company however, all past chairpersons also held the position Chairman of First Bank and opted to receive the First Bank chairman's compensation so did not collect the compensation for FFHC chairman.(b) Our Company added 3 independent directors starting with the 3rd Board of Directors on May 22, 2009. At the 41st Meeting of the 2nd Board of Directors, their monthly payment was set as NTD50,000 per person; the Company subsequently established the "Remuneration Committee Organic Regulations" on August 25, 2011, to establish a Remuneration Committee made up of all independent directors. On September 1, 2011, the monthly payment to independent directors was increased to NTD60,000 per person and this was approved by the 28th Meeting of the 3rd Board of Directors. Director's compensation: Under Article 34, Paragraph 1 of the Articles of Incorporation, if the Company was profitable during the year then no more than 1% of the profits may be allocated as directors' compensation after deducting the employee and directors' bonuses from the pre-tax profits.However, a sum shall be set aside in advance to pay down any outstanding cumulative losses. In addition, under Article 4 of the Regulations Governing the Scope of Duties for Independent Directors, the only compensation that independent directors receive is the fixed monthly payment; the Company's directors' compensation for 2015 was also proposed by the Remuneration Committee in accordance with the rules and reviewed by the Board before being reported to the general shareholders' meeting.
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4
First Integrity- Risk management
4-1 Ethical management policy and execution
4-2 Internal controls
4-1 Ethical management policy and execution
In 2015 our Company established the "Ethical Management Committee" under the Board of Directors to oversee all ethical management matters. The first committee was made up of all (3) independent directors and its responsibility included the defining or amending of the ethical management policy, and reporting regularly to the Board on current execution to ensure sound ethical management and that business practices adhere to the principles of fairness, honesty, trust and transparency. The goal is to establish a corporate culture of ethical management and active prevention of unethical behavior. The "Ethical Management Principles and Code of Conduct " (hereafter referred to as the "Code of Conduct") was subsequently approved by the Ethical Management Committee and the Board as the guiding policy on ethical management for all Group companies; our Audit Division has also drawn up the "Guidelines for Handling of Whistleblower Cases" based on the Code of Conduct. A whistleblower section has been set up on the internal website as well to establish an open and transparent whistleblower scheme.
The "Code of Conduct" serves as the guiding policy on ethical management for all Group subsidiaries. It applies to all affiliated organizations and the First Education Foundation. Apart from explicitly defining the types of unethical behavior and benefits, the management organization and duties for ethical management, prohibition on the providing of accepting of improper benefits, conflicts of interest, ban on insider training, and adherence to policy and regulations during business transactions, all departments are also expected to take precautions against the following unethical behaviors based on their particular responsibilities. They must also establish a concrete whistleblower scheme, incentive measures and procedures for dealing with unethical behavior.
( 1 ) Offering and accepting bribes: Do not directly or indirectly provide, promise, request or accept any improper benefits from clients, agents, contractors, suppliers, public servants, or other stakeholders during the course of business.( 2 ) Political donations: No political contributions may be made to political parties, political organizations or political candidates.
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First Financial Holding CSR Report
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( 3 ) Improper charity donations or sponsorships: Charity donations or sponsorships should adhere to the local laws and internal procedures. It may not be used as an alternative form of bribery; decision-making should be documented in writing; all returns from the sponsorship should be clear and reasonable. It may not be for people who have business dealings with Group companies, or people with interests linked to personnel at each Company.( 4 ) Provision or acceptance of unreasonable gifts, hospitality or other improper benefits: Do not directly or indirectly offer or accept any unreasonable presents, hospitality or other improper benefits for the sake of establishing business relationships or influencing commercial transactions.( 5 ) Violation of business confidentiality, trademarks, patents, copyright or other intellectual property rights: Obey intellectual property laws, the internal regulations and contract terms of Group companies and the organization; do not use, reveal, dispose of, destroy or engage in other behaviors that violate intellectual property rights without the permission of the legal owner.( 6 ) Engaging in unfair competition: Obey the Fair Trading Act and related competition laws during business activities. Do not engage in price-fixing, bid-rigging, limiting output or quotas, or using the distribution of customers, suppliers, business areas or business types to share or partition the market.( 7 ) Damage the rights of consumers or other stakeholders during the development, purchasing, delivery or sale of products and services: Collect and understand the applicable laws and international standards during the development, purchasing, delivery or sale of products and services. The relevant precautions should be compiled and published for the reference of all Company personnel, ensuring the transparency and safety of products and services; a policy to protect consumers or other stakeholders should be published on the corporate website so that our products and services does not directly or indirectly harm the rights of consumers or other stakeholders. If there is sufficient evidence that a product or service may harm the interests of consumers or other stakeholders, delivery of the product or service should ceased immediately and corrective action proposed.
Each company should conduct training on compliance, anti-money laundering, IT security and risk management using anti-corruption moral principles and past cases as an example. In 2015, 100% of employees underwent anti-corruption training. At First Bank for example, employees of all levels undergo related training:
( 1 ) New employees: Arranged to attend courses on "Professional Ethics and Legal Compliance for Finance Professionals", "Anti-Money Laundering Education", "Personal Information Protection Act" and "Business Operating Guidelines". New employees at overseas branches take online courses on "Professional Ethics and Legal Compliance for Finance Professionals" and "Personal Information Protection Act" in English.( 2 ) General bank employees: Arranged to attend courses "Employee Compliance Education", "Ant-Money Laundering Prevention Education", "Personal Information Protection Act" and "Business Operating Guidelines".( 3 ) Management: Arranged to attend courses such as "Compliance Education for Managers", "Analysis of Financial Fraud", "Self-Inspection Camp for Managers", "Regulatory Compliance Advocacy Workshop", "Personal Information Protection Act" and "Business Operating Guidelines".
Each company also uses educational posters and corruption hotlines to strengthen employee ethics management and prevent fraud, managers at First Bank conduct monthly assessments on their subordinates' lifestyle, finance and work. Poorly-performing employees receive immediate counseling. First Bank also has a "Compulsory Leave System" in place with regular rotations and changes in position to prevent fraud.
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Our Company's business management units draw up their own audit contents and procedures based on their own risk characteristics and control points. Self-inspections and internal audits are also conducted on a regular basis. If aberrations from company policy, operating procedure, targets or expected standards are found during routine operations, the necessary corrective actions are to be taken in a timely manner to ensure that the company's business management follows the planned path. In 2015, an assessment of corruption risks was conducted by all group subsidiaries and their business locations. The overseas locations of First Bank identified significant risks from money-laundering and terrorism financing. An Anti-Money Laundering (AML) system has now been installed to prevent and manage such risks. There were no punitive actions levied against the Group for corruption or violation of fair trading laws in 2015.
1 Compliance system
Even as the First Financial Group seeks to maximize returns for shareholders, we also continue to expand our business with a particular emphasis on our overseas presence. In addition to complying the laws and regulations, we are also continuing to monitor the effectiveness of our compliance system and to strengthen compliance management at our overseas locations. In 2015 for example, First Bank announced a tiered compliance management scheme for overseas units. Each overseas unit is assigned one of three grades based on whether they had any major compliance problems in recent years, number of compliance deficiencies identified by local regulators, and the intensity of regulatory management. The range of businesses that unit managers can oversee is then limited by the compliance grade. In addition to the branch reporting its compliance implementation to the regulator in accordance with the law, special reports must be provided
First line of defense Internal inspection by
sales unit
Second line of defense Sound compliance
and risk management system
Third line of defense Provide an internal
control environment with risk management and
independent examination of all business operations
4-2 Internal controls
Our company has established internal controls and audit systems in accordance with the "Implementation Rules of Internal
Audit and Internal Control System of Financial Holding Companies and Banking Industries". The basic goal of the internal
control system is to promote the sound management of our company. It is to be followed by the Board, management and all
employees to ensure the achievement of operating results, the reliability of financial reports and compliance with relevant
regulations through reasonable means.
Our company's internal control system is a continuous process that encompasses all of our business activities. It is not the
responsibility of specific units or departments, nor limited to the management only. Instead, it is based upon continuous
promotion and execution by all employees. It is regularly reviewed each year with improvements submitted to the Board for
review.
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First line of defense - Internal inspection by sales unit
Second line of defense - Sound compliance and risk management system
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Sustainable Governance
Major regulatory or policy changes
In accordance with Article 37, Paragraph 3 of the "Implementation Rules of Internal Audit and Internal Control System of Financial Holding Companies and Banking Industries":"The risk management schemes of financial holding companies should include the following items: Define an overall anti-money laundering and counter-terrorist financing plan for the financial holding company and its subsidiaries. This includes internal information sharing policies and procedures within the Group aimed at combating money laundering and terrorist financing."
According to Jin-Guan-Yin-Fa Letter No. 10300328890 (2014/12/30) (banking industry), Jin-Guan-Cheng-Fa Letter No. 1040008757 (2015/4/7) (Securities brokers), Jin-Guan-Cheng-Fa Letter No. 1040024657 (2015/7/8) (Futures industry), Jin-Guan-Cheng-Fa Letter No. 1040012690 (Investment trust industry), and Jin-Guan-Bao-Zhong Letter No. 10400054690 (2015/7/13) (Insurance industry) issued by the Financial Supervisory Commission, the subsidiaries First Bank, First Securities, First Securities Investment Trust, First-Aviva and First Insurance Agency had completed the necessary planning, implementation and management measures for anti-money laundering and counter-terrorist financing on 2015/12/31 and 2016/1/31 respectively; the first company money-laundering and terrorist-financing risk
On December 3, 2015, our Company defined the "Anti-Money Laundering and Counter-Terrorist Financing Plan for FFHC and Subsidiaries". The plan includes internal information sharing policies and procedures within the Group aimed at combating money laundering and terrorist financing, and serves as the basic principles for subsidiaries implementing anti-money laundering and counter-terrorist financing measures.
In 2015, our Compliance and Legal Division required each subsidiary (First Bank, First Securities, First Securities Investment Trust, First-Aviva and First Insurance Agency) to report on their anti-money laundering/counter-terrorist financing systems/black lists, internal company rules/progress of revisions. Each subsidiary was also required to complete the relevant planning, deployment and management measures by the deadline issued by the competent authority. A company-wide anti-money laundering and terrorist-financing risk assessment should also be conducted, with anti-money-laundering and terrorist prevention plans drawn as well.
Response measures
by the Compliance and Legal Division on mandatory improvements to facilitate the tracking of overseas branches' compliance tasks and strengthen their compliance management capability.
FFHC and subsidiaries First Bank, First Securities and First-Aviva have all established dedicated compliance units reporting to the president in accordance of the law. These units are responsible for the planning, management and execution of the compliance scheme at their respective companies. Our Company also requires every subsidiary to put the compliance scheme into practice. This includes compliance training every 6 months, compilation of a compliance manual, self-assessment on compliance tasks, as well as reporting on their implementation of the compliance scheme to the Board of Directors (or to the Audit Committee in the case of FFHC) every 6 months. Our company conducts performance evaluations on compliance every year. The results are reported to the Board then sent to the board of directors at each company as a reference for personnel evaluations.
To strengthen subsidiaries' management of their compliance scheme and ability to keep up to date on major compliance incidents, our company regularly hosts coordination meetings and on-site inspections with the compliance units at each subsidiary in accordance with the "2015 Subsidiary Management Schedule." This is used to check whether the compliance scheme is being effectively implemented, offer suggestions for improvement, and increase channels of communication with subsidiaries; since 2015, when a major compliance incident occurs at a subsidiary all must notify the head of the compliance unit at Our Company and the president notified as soon as possible in accordance with the "First Financial Group Compliance Notification Process" and "Compliance Reporting Form." The establishment of a Group compliance reporting mechanism allows the Company to be quickly made aware of major compliance incidents at each subsidiary and decide on the appropriate measures to take.
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assessment should also be completed by 2016/6/30 and 2016/7/31. This should then be used to formulate an anti-money laundering and counter-terrorist risk prevention plan.
According to Jin-Guan-Yin-Kong Letter No. 10460003280 "Regulations governing information service and financial technology companies engaged in finance-related activities as determined by the competent authority" issued by the Financial Supervisory Commission on 2015/9/16:
As this regulation deregulations and boosts digital finance competitiveness, First Bank began actively looking for FinTech-related potential investments in the second half of 2015. At the end of December 2015, an application was made to the competent authority to invest in "TCloud Computing Inc." Approval was granted on February 2, 2016. The above investment project will be carried out in accordance with the relevant regulations in order to satisfy the guidelines set by the competent authority.
Under Article 74 Paragraph 4 of the Banking Act and Article 36, Paragraph 2, Sub-paragraph 11 of the Financial Holding Company Act, "other finance-related activities as determined by the competent authority" covers not only the information services industry (e.g. Involved in processing the e-commerce transaction information of bank accounts) but now also Financial Technology ("FinTech") such as:big data, cloud technology, mobile payment. The Financial Supervisory Commission has now determined both industries to be finance-related.The core business of the information service and FinTech companies may not be the manufacture, sale or leasing of hardware equipment. If the information service and FinTech company provides hardware equipment then the purpose of that hardware equipment must conform to the specified type of business of data, and be connected to finance-related software.A FinTech company is where over 51% of the total annual operating costs or income comes from the financial industry (including financial holding companies, banks, securities, insurance and their subsidiaries) and financial service providers; an exception is made where a bank or financial holding company's investment in the company as part of a strategic alliances or to strengthen business cooperation does not satisfy the criteria for controlling interest or major influence (i.e. Shareholding is below 20%) as defined by the Regulations Governing the Preparation of Financial Reports by Public Banks and Regulations Governing the Preparation of Financial Reports by Financial Holding Companies. The bank or financial holding company should report the ratio of FinTech's annual operating costs and income from financial industries and financial services to the competent authority for reference no more than one month after the end of each financial year.Those who fail to satisfy the ratio should make adjustments to satisfy the ratio within 2 years of the report. They may also describe the reason and apply for extension once. The extension is limited to one year and if the problem is not resolved by the given deadline, a plan should be submitted to the competent authority to reduce the shareholding to below 5%, or increase the ratio to satisfy the 51% requirement.
1.
2.
3.
4.
Major regulatory or policy changes Response measures
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風險政策訂定
風險辨識
風險衡量
風險監控
風險報告
信用風險
市場風險
流動性風險
保險風險
利率風險
作業風險
First Financial Holding CSR Report
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4-2
Sustainable Governance
To effectively manage the Group's operating risk, our company and subsidiaries have defined risk management policies and guidelines. Independent "Risk Management Committees" have also been established to regularly supervise the different types of risks within the Group, review each risk limit, set risk monitoring indicators and report the results of risk assessments to the Board. This is expected to keep the potential risks from each business within an acceptance range and achieve the ultimate goal of balancing risk vs. return.
2 Risk management system:
2-1 Risk management policy and structure
Risk policy developmentRisk identificationRisk measurementRisk monitoringRisk reporting
Credit risk
Market risk
Liquidity risk
Insurance risk
Interest rate risk
Operating riskIn accordance with the spirit of corporate governance, FFHC actively assists each subsidiary with establishing the necessary risk management schemes. Apart from regular inspection and disclosure of the Group's risk exposure, we also formulate various risk monitoring indicators based on the requirements of the competent authority or current developments. These included the formulation of the "National Risk Management Regulations for FFHC Companies", and the establishment of the "Industry-based Lending and Investment Risk Liability Cap." To strengthen risk management in China, we have imposed debt caps on leasing subsidiaries operating in China. All subsidiaries are required by our Company to stay on alert for operating risk during their business operations.
The subsidiaries First Bank, First Securities, First Securities Investment Trust and First-Aviva have all set up a "Risk Management Committee". Dedicated risk management units are also tasked with monitoring and reporting routine business risks. The remaining subsidiaries have also set up risk management teams or dedicated risk managers based on the nature of their business and their organizational scale to oversee all matters related to risk management.
Board of Directors,Chairman
President
Risk Management Division
First Bank: Risk Management Committee
First Securities: Risk
Management Committee
First Securities Investment Trust: Risk Management
Committee
First-Aviva: Risk Management Committee
Other subsidiaries: Risk Management
Unit
Risk Management Committee
(convened every 2 months)
47
Our company and subsidiaries have each defined control indicators and operating procedures for credit risk, market risk, interest rate risk, liquidity risk, insurance risk and operating risk based on the traits of their particular business. These included the set up and implementation of authorization systems, limit management, monitoring indicators and reporting process. The risk management policy and procedure can be effectively enforced through indicator monitoring and regular self-assessment. The risk management situation is also regularly inspected by audit units to ensure that risk management system is effective.
Our subsidiary First Bank is progressively adjusting its risk management policy in accordance with BASEL and the relevant regulations laid down by the competent authorities as well as changes in the economic cycle, the content and quality of the overall credit portfolio, and business development strategy. Credit risk assessment tools are now being developed along with the introduction of credit checking services into the credit review process for measuring risk. A Group (including overseas units) loan early warning system has also been set up with pre-lending reviews, post-lending reviews and a mechanism for exchanging information with overseas peers. This serves to improve credit checking information for local industries and businesses overseas. Together with the link to post-lending management, this establishes a comprehensive credit management process for controlling risk. Market risk is controlled using different investment portfolios as well as the monitoring and management of risk factors. Value at Risk (VaR) or sensitivity limits (Greek) are used to measure the level of market exposure. Overall liquidity risk is then used to progressively establish BASEL III quantitative management indicators such as Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR). For operating risk management, through the management of risk management tools such as Loss Data Collection (LDC), Risk Control Self-Assessment (RCSA), Control Self-Assessment (CSA) and Key Risk Indicator (KRI), risk control can be gradually optimized.The subsidiary First Securities Investment Trust conducts sensitivity analysis of equity and rates every quarter for disclosure. It also tracks the credit ratings from bond or deposit institutions to strengthen management of market risks in its investments.The subsidiary First-Aviva Life Insurance uses financial tools to construct models and parameters that correspond to each type of market risk. Sensitivity analysis is also conducted for equity, rates and exchange rates every quarter to reflect the impact of market risk on profit, loss and equity.The subsidiary First Securities has now completed the real-time inventory and profit-loss system for TWSE, OTC, Emerging Stock, Futures and Options for more effective control of market risks.FCB Leasing (Suzhou), FCB Leasing (Xiamen) and FCB Leasing (Chengdu) are progressively updating their risk management policy and procedures, general business processing rules, risk lending cap guidelines and financing & line of credit operating guidelines to strengthen their control of exposure in China. Apart from establishing risk management schemes and enforcing the separation of sales and review during credit checks, they also added risk management rules such as total credit caps on individual industries and total debt caps.
a.
b.
c.
d.
e.
a.
b.
c.
2-2 Risk management procedure
The risk management operations of the First Financial Group as a hold can be divided into three directions:
Distributed management All Group subsidiaries regardless of size must establish an effective and practical risk management scheme based on the requirements laid down in the "Risk Management Principle and Guiding Principles for FFHC and its Subsidiaries" so they can identify, measure, monitor and control their own risk exposure. Each subsidiary's board of directors serve as the top decision-making body for risk management while the risk management and audit departments ensure the effective operation of their risk management scheme. Centralized monitoring As the parent company of the group, we track all quantitative and qualitative risk management indicators at each subsidiary based on their level of importance. This includes the establishment of reporting thresholds, monitoring of meeting records, risk management regulations and credit limit management authorization; as for the effectiveness of risk management schemes at subsidiaries, disclosure is achieved through monitoring indicators as well as the implementation of internal audits and internal controls. Timely guidance on corrective action is provided or adjustments made based on the strategic needs of the Group as a whole.Overall economic directionAs local and international economic, financial and industry developments play a critical part in our business development and risk management, our company's risk management committee is convened every two months
48
First Financial Holding CSR Report
2015
4-2
Sustainable Governance
The purpose of the internal audit system is to assist the Board and management with assessing and evaluating the effective operation of the internal control system, to provide timely advice on improvements, to ensure that the internal control system can continue to be implemented in a reasonable manner and to provide a basis for corrective action. The internal audit system and the self-inspection system are all part of our Company's ability to maintain the effective and appropriate operation of the internal control system.
The Audit Division is the Company's internal audit unit. Its responsibilities include the establishment and execution of the internal audit scheme, monitoring of audit activities at subsidiaries, assessing and documenting the performance of their internal audit system, and providing regular reports to the Board and Audit Committee.
The Audit Division conducts at least one general business inspection every year and at least one targeted inspection of our Company's finances, risk management an compliance every 6 months. The results are compiled into the internal audit report. If the scope of the targeted inspection was already covered by a previous general business inspection and no major deficiencies were noted in the internal audit report then a targeted inspection may be waived for that 6-month period. Unless otherwise approved by the competent authorities, the Audit Division conducts a targeted inspection of each subsidiary's finance, risk management and compliance every 6 months. This is also included in the annual audit plan.
Random inspections are also conducted by the Board of Directors. These include following up on deficiencies identified for correction during business inspections, supervising and attending acceptance inspections of building projects as well as the purchasing, fabrication and sale of property. The frequency of audits may be increased depending on the severity of deficiencies discovered by financial inspection agencies, accountants, the Audit Division and internal inspection personnel. Inspection workshops are also hosted every year to strengthen the knowledge and skills of internal inspectors. An internal inspection is conducted of each department's internal control system at least once every year. An internal audit coordination conference is held within the Group every 6 months to announce regulatory changes and discuss the audit focus in each industry. Preventive management at the three lines of defense are also reviewed through case studies.
The execution of our company's 2015 internal audit process and the preparation of the 2016 audit plan referred not only to the financial inspection guidelines issued by the Financial Supervisory Commission but also internal control performance ratings and business characteristics of each unit (including subsidiaries). In addition to risk management, the Group's internal control system is used to evaluate our management system and improve the effectiveness of the Group's internal control system self-evaluation. The First Bank subsidiary has even adopted an audit management system that regularly sorts audit opinions or deficiencies by type for statistical analysis to identify areas of potential risk in internal control operations. These are provided to the relevant unit as a reference for the monitoring of internal controls and to help business units make risk-reducing improvements.
for the "First Financial Group Industry and Investment Analysis Report" detailing macro-economic, industry and financial trends. The report not only provides advance notice of risks and opportunities but can also be used as a reference in business development and risk control. It provides the Group's top executives with a useful reference during business decision-making as well.
Third line of defense - Provide an internal control environment with risk management and independent examination of all business operations
49
The arrival of digital finance means the physical
transaction model is gradually changing. Due to the
trend and consumer demand for mobile banking, and
to take advantage of the opportunities offered by
digital banking, the "Electronic Finance Division" was
expanded to become the "Digital Banking Division."
The new division will focus on new mobile payment,
digital experience and big data analytics in order
to keep up with developments in "mobile-first" and
"finance technology."
In response to trends in the interactive experience
and exploit opportunities for digital transformation,
the business development strategy of FFHC has
defined "the customer's most helpful and accessible
professional partner" as the target, with optimizing
digital channels, strengthening digital application
innovation, and enhancing customer segment service
and marketing as the three main dimensions.
FFHC has continued to promote urban renewal
financing. The design of a comprehensive package for
disadvantaged communities in particular means that
residents can move into safe new buildings without
having to pay for the reconstruction themselves.
The building transformations create energy-saving,
carbon-reducing, ecological and friendly communities
that benefit the environment, residents and FFHC.
The initiative has successfully created 12 green
buildings to date. Along with modifications to 7
existing FFHC-owned buildings (with 3 pending
approval) to bring them up to Diamond-class green
building specifications means that FFHC has helped
bring 19 green buildings to date.
Virtual and Physical Integration
Green Building Promotion Fosters 19 Green Buildings
GreenFinance
50
In 2015 FFHC extended the scope of green
financing review principles to overseas sites, leasing
companies, and banking and insurance products.
Except for syndicated loans, for business loans
overseas branches must now explicitly state in the
"Equator Principles Evaluation Form for Overseas
Branches" the basic scope of their review. The
lending documents must also be annotated with text
to the effect that "the borrower has been asked to
comply with local laws and to conduct self-inspection
on whether their products and processes fulfill
their environmental protection and corporate social
responsibilities." In this way, FFHC partners with the
borrower on protecting the local environment; the
34 funds that have products listed with the bank have
now all signed the "CSR Declaration." with 6 out the 7
insurance companies providing their CSR report and
1 signing the "CSR Declaration" in order to support
the development of a sustainable environment
together.
In 2015, electricity, water and petrol savings
of 5.33%, 3.72%, 1.1% were achieved over 2014
reducing total carbon emissions by 1,045 tons of
CO e. This fulfilled the philosophy of "Caring for
the Earth through energy-saving and carbon
reduction" and made a contribution to environmental
sustainability.
As of 2015, 7 sites have achieved "ISO 50001
Energy Management System" certification, 54 sites
have achieved ISO 14064-1 "Greenhouse Gas
Inventory" certification, the headquarters buildings
achieved "ISO 14001 Environment Management
System" certification, 115 sites received the Indoor
Air Quality Self-Management Mark, and 7 existing
buildings have received the Diamond-class Green
Building Mark.
Extending the Equator Principles through "Green Partners"
Continued Carbon Reduction
2
51
2011
2012
2010
In earlier years, environmental issues generally centered around conservation of resources and protecting the land. In
recent years however, flooding and droughts have alternated with increasing frequency, leading to greater public awareness
towards climate change and global warming. This in turn led to the Legislative Yuan finally passing the "Greenhouse
Gas Reduction and Management Act" in the lead-up to the Paris Climate Conference after nearly ten years in limbo.
The Environmental Protection Administration subsequently issued the Taiwan Voluntary Carbon Reduction Plan which
aims to reduce carbon emissions in 2030 by 20% compared to 2005. The reduction of carbon emissions and creation of
green-energy, carbon-reducing environment is therefore an issue that can afford no further delays. In response to the
implementation of the Greenhouse Gas Reduction and Management Act, FFHC has converted its savings on electricity,
water, fuel and gas into carbon emissions and set a 2016 group carbon reduction target of 2.85% compared to 2015. The
installation of solar power panels at 2 sites in central and southern Taiwan to provide clean energy is also being studied.
In the future, the synergies from internal carbon reductions and external solar power panels should see solar-powered
branches achieve the target of carbon neutrality. FFHC will strive to become the No.1 brand in green finance, embrace
energy conservation and carbon reduction, continue to create and enhance green financing products and services, and
expand our range of green partners in order to protect the environment together.
"Building the No. 1 brand in green finance"
MilestonesFormed the "Green Building Certification
Program" team to open the way to green finance.
Promoted "Urban Renewal Financing" to
encourage the renewal of aging communities.
Launched the "No.1 Promoter in the Energy
Industry" financial plan, making First Bank the
first domestic bank to offer a financing program
for the ESCO industry.
Founded the "Organic Agriculture Assistance
Project" and launched the first charity co-
branded card based around "organic and health"
and "land & environmental protection." Through
the card, First Bank partners with customers to
help small organic farmers that lack manpower
and money in order to protect the land of Taiwan.
Required the headquarters building to reduce
its GHG emissions in 2015 by 12% compared to
2011.
Launched the "Renewable Energy Creation Loan"
to help business owners purchase renewable
energy generation equipment.
Defined the CSR Policy and Code of Conduct.
Also established the "CSR Committee" to set
the environmental conservation targets and
action plans for each year.
Launched the "Green Energy Industry Loan" to
support the development of the green energy
industry.
52
1
2015
2014
2013
STEP1
First Energy - Protecting the planet
Progressive internal carbon reduction
External environmental partnerships
FFHC has embraced a policy of environmental sustainability. In 2015, savings in fuel, electricity and gas reduced carbon
emissions by 1,046 tons of CO e. Paperless operations reduced carbon emissions by 11,881 tons of CO e. Total carbon
reductions therefore amounted to 12,927 tons of CO e, down 1,557 tons of CO e from 2014. Related measures and
outcomes are described below:
2
2 2
2
Set electricity, water, fuel and gas conservation
targets for each company. The annual reduction
target must also be no lower than the ratio set
for the previous year.
D r e w u p t h e "G r e e n F i n a n c i n g R ev i e w
Principles" based on the Equator Principles to
help protect the environment. These measures
were applauded by the regulators and were
incorporated into the loan approval principles
of the Bankers' Association.
Defined the tenets of "Green Partners" and
extended the ideals of the Equator Principles
to banking and insurance products. A "Do-
Not-Invest List for CSR Violations" was also
established as a reference for group companies
to use during investment reviews.
Established the 3-step Supplier Management
Procedure to join suppliers in protecting the
local environment.
Green Finance
First Financial Holding CSR Report
2015
53
Seven buildings have achieved the carbon reductions required for the Diamond-class Green Building Mark
Diamond-
class
Diamond-
class
Zhongxiao Road
Branch building
Guangfu Branch
building
Replacement with more
efficient inverter air-
conditioning unit
Replacement of T8 with LED
lamps
Replacement with more
efficient inverter air-
conditioning unit
Replacement of T8 with LED
lamps
173,186
55,307
90
29
Diamond-
class
Headquarters
building
Enthalpy control
Replacement with more
efficient chilled water and
cooling water pumps
Addition of variable speed
drive to chilled water pump
Addition of variable speed
drive to air conditioning unit
Addition of variable speed
drive to cooling tower
Replacement of T8 with LED
lamps
1
2
3
4
5
6
1
2
1
2
Unit Green Building Mark grade
Carbon reduction result Carbon reduction areaTotal(kWh/yr) Total TonsCO e
1,274,553 665
2
Progressive internal carbon reduction
Refurbish old buildings to reduce carbon emissionsSTEP 1
The FFHC headquarters building was completed in 1982 so is over 34 years
old. To alleviate the heat island effect of office buildings, the "Green Building
Certification Program" team was formed in 2010 to begin converting the 74
old buildings owned by FFHC into green buildings. Following the process
of collecting group-wide water and electricity consumption calculation of
CO emissions ISO 14064-1 Greenhouse Gas Inventory certification ISO
50001 Energy Management System certification ISO 14001 Environment
Management System certification Green Building certification, green
competitiveness was strengthened through new mindsets and initiatives. As
of 2015, 7 existing buildings throughout Taiwan, including the headquarters
building, the IT building, the Zhongxiao Road Branch building, the Guangfu Branch building, the Wanhua Branch building, the
Luodong Branch building, and the Gangshan Branch building (with a further 3 pending approval) have been certified by the
Ministry of Interior as Diamond-class green buildings. In the future, FFHC will continue to select 5 - 7 existing buildings for
Green Building certification in order to make a contribution to environmental sustainability.
2
54
STEP1
Diamond-
class
Diamond-
class
Diamond-
class
Diamond-
class
Wanhua Branch
building
Luodong Branch
building
Gangshan Branch
building
IT building
Replacement with more
efficient multi-split inverter
air-conditioning
Replacement of T8 with LED
lamps
Replacement with more
efficient inverter air-
conditioning unit
Replacement of T8 with LED
lamps
Replacement with more
efficient inverter air-
conditioning unit
Replacement of T8 with LED
lamps
Addition of variable-flow
system to cooling water pump
Addition of variable-flow
system to regional pump
Addition of variable-flow
system to discharging pump
and heat exchange chilled
water pump
Replacement of T8 with LED
lamps
7,567 GJ
(1kWh=0.0036GJ)Total
39,221
43,685
45,749
470,196
2,101,897
20
23
24
245
1,097
Note: An "electricity emission factor" of 0.522 as published in 2013 was used
1
2
1
2
1
2
1
2
3
4
"Diamond-class" Green Building
Indoor Air Quality Self-Management Mark
ISO 14064-1 Greenhouse Gas Inventory
ISO 50001 Energy Management System
ISO 14001 Environmental Management System
7
115
54
7
1
Environment Management certifications received by FFHC
Item Certified sites
Green Finance
First Financial Holding CSR Report
2015
55
FFHC has continued to promote its green purchasing policy. Preference is given to eco-friendly, energy-saving, water-saving
and certified Green Building products when purchasing printing paper, toilet paper, computer equipment, air-conditioning
systems, lighting equipment and cleaning supplies. Since 2011, NT$57 million has been progressively spent on replacing
office lighting with high-efficiency LED lamps. The replacement program was completed in 2015 and covered 40,000 units.
In 2015, NT$130,070,000 was spent on green purchasing in response to government appeals and led to recognition for
"excellence in green purchasing" from the Taipei City Government.
In 2012, FFHC set a target of reducing the Headquarters building's GHG emissions in 2015 by 12% compared to 2011. This
target was achieved ahead of schedule in 2013. We did not rest on our laurels however and began setting electricity, water,
petrol and gas reduction targets for each group company in 2013. The principle that the reduction target for each year
should not be lower than the previous year was also laid down. In 2015, the electricity, water and petrol consumption of the
group as a whole was reduced by 5.33%, 3.72% and 1.1% respectively compared to 2014. Due to the implementation of the
"Greenhouse Gas Reduction and Management Act" in 2016, savings in electricity, water, petrol and gas consumption will be
converted into carbon emissions to provide a clearer picture of carbon emissions by each group company.
FFHC is taking the impact of climate change seriously and boosting our risk awareness. We signed on with the Carbon
Disclosure Project (CDP) in 2012 and were among the first group of finance companies in Taiwan to express their support
for the CDP. In 2015 our CDP survey received a score of 89.
Amount spent on green purchasing (NT$10,000) Pie chart of green purchasing
Green Purchasing - Total Replacement with Energy-Saving Products
Set Clear Carbon Reduction Targets
STEP 2
STEP 3
FFHC Green Purchasing results from recent years
54.5%41.5%
4.0%
56
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
2014
6,868
2013
5,270
2015
13,007
146.8%
Purchasing of energy-saving equipmentPurchasing of green building materials
First-Aviva Life Insurance First Financial AMC
FFHC Overall Carbon Emissions
Individual GHG emissions(t-CO e) :
Note 1: Scope 1 emissions consist mainly of fuel used by company cars, generator diesel and natural gas. Scope 2 emissions
consist mainly of electricity consumption.
Note 2: In:2014 there were 8,886 employees and in 2015 there were 9,210 employees
Note 3: New and replacement air-conditioning systems all used the new eco-friendly R134a or R410a refrigerant. There
was no use of Ozone Depleting Substances (ODS).
Note 4: In 2015 we received no complaints over environmental impact or penalties for environmental violations.
Note: In 2014 total GHG emissions were 20,197
tons CO e, with 11,313.6228 tons CO e coming
from the emissions recorded for "ISO 14064-1
Greenhouse Gas Inventory" certification at 54 sites.
Emissions(t-CO e/year)
Proportion of total emissions
11,226.0558
99.226%
4.5702
0.040%
14.3735
0.127%
68.6234
0.607%
0.0000
0.0000%
0.0000
0.0000%
Greenhouse Gas Type CO CH N O HFCs PFCs SF
Total
Proportion of total emissions 100.0000%
11,313.6228
5.18 8.11 20.91
First Bank First Securities First Securities Investment Trust
(Unit: %)
The energy conservation and carbon reduction performance of FFHC Group companies in 2015:
%
Reduction Ratio 1.01 5.51 4.76% % % % %
2 2
2
2
2 2 64
ElectricitySavings
Electricity Savings
Electricity Savings
ElectricitySavings
ElectricitySavings
Wa t e r Savings
Water Savings
Water Savings
Water Savings
Water Savings
Petrol Savings
Petrol Savings
Petrol Savings
PetrolSavings
Petrol Savings
Compared to 2014 reduction target
Actual performance
STEP2STEP3
Green Finance
First Financial Holding CSR Report
2015
Scope 1 Emissions (metric tons CO e)
Scope 2 Emissions (metric tons CO e)
Total Emissions (metric tons CO e)
Total energyconsumption (GJ)
EnergyConsumption Per Capita (GJ/person)
G r e e n h o u s e gas emissions intensity (Tons C O e / M i l l i o n NTD)
2
2
2
2
57
2.002.12
2.00
6.55
2.00
12.35
4.56 2.00
6.26
10.19
1.001.18
3.50 1.00
5.003.66
1.001.90
2.00 2.00
5.02 3.83
1.00
2.94
4.47 1.00
12.26
1.181.00
23.23
18,71817,687
20,19719,151
148,985
141,893
15.4116.77
0.593 0.469
1,4791,464
2014
2015
Conservation of water resources - Gray water reclamationSTEP 4
FFHC Overall Electricity Consumption
In 2012, FFHC installed a 1,296-ton rainwater reclamation tank in the basement of the Headquarters building to supply
water for watering the gardens and toilets. Tap water therefore made up 97.67% of the water consumption and 2.33% came
from the Headquarter building basement's overflow and rainwater. Water consumption at each company including operating
sites was also investigated. Certified green water-saving devices such as water-saving tap fittings, 2-stage flushing toilets,
and sensor-controlled urinals were also used to reduce water conservation.
Gray water reclamation system installed and a 1,296 ton rainwater reclamation tank built in the building basement to
supply water for watering the gardens and toilets. In 2015 the gray water reclamation system conserved 4,790 tons of
tap water and accounted for 2.38% of the group's water consumption.
FFHC Overall Water Consumption
Total power consumption
Total water consumption(kWH)
Average electricity consumption (kWH/person)
Average water consumption (kWH/person)
58
20132012 2014 2015
38,689,382
4,595
4,2494,028
3,680
37,425,00235,796,501
33,889,212
12.4%
20132012 2014 2015
220,215
26.15
24.4523.51
21.84
215,371208,913
201,143
8.66%
Upgrading IT equipment - Paperless operationsSTEP 5
FFHC is using IT equipment to introduce paperless education, paperless meetings and paperless operations. Carbon
reducing reforms are also being incorporated during the development of internal and external systems. Since 2008 we have
continued to optimize our credit review system and credit checks are now carried out completely within the system rather
than by manual inspection and on paper. Automatic importing of credit information and domestic/overseas group account-
keeping is also being progressively introduced. In the last three years, 103,060 lending review and 39,060 credit check cases
have been processed in this manner, greatly reducing the demand for printing paper.
Paperless learning
Paperless meeting
Paperless administration
Paperless credit review
The development of the "First e-Academy" online
learning system, collaborative system cloud and
data cloud has effectively reduced electricity
consumption.
Printed materials no longer provided at most
meetings. They are instead compiled into electronic
files and transmitted to the meeting server.
All business announcements, and sales reviews
are conducted through video conferencing where
possible to reduce fuel consumption and carbon
emissions from business travel. This improved
administrative efficiency and reduced carbon
emissions.
Internal documents are now in electronic form.
Recycled envelopes are used for sending printed
documents.
Use of Internet bulletin board for announcements.
Reduced the use of paper cups and meal boxes.
Recycled paper packaging for bills; eco-friendly ink
used for printing envelopes and annual reports.
Implemented the "New Enterprise e-Loan System" and "Consumer e-Loan System" for credit checks and reviews. The entire process is not computerized eliminating the need for paperwork.
Joint credit information is now automatically imported. Borrower/policy-holder credit information can be queried online making printed paperwork unnecessary.
Implemented an account-keeping database for the group to automatically import domestic and overseas group data.
STEP3STEP4STEP5
Green Finance
First Financial Holding CSR Report
2015
59
e
Recycling - Zero Waste BasketsSTEP 6
To maximize resource recycling, annual recycling targets have been set by FFHC for all group companies. A zero waste
basket policy is also rigorously enforced with no personal waste baskets placed in the office. This encourages employees to
take their trash to the office kitchen to be sorted. In 2015, the amount of waste recycled was 6.1% higher than 2014.
Note: According to the Environmental Protection Administration of Executive Yuan's (Taiwan Product Carbon Footprint)
website, a sheet of B4 paper produces 0.009 kg CO e in carbon emissions. In 2015 a total of 1,320,126,530 pcs of electronic
statements and eDM were sent out and this is equal to a carbon reduction of 11,881 tons of CO e.
Carbon reduction at FFHC from paperless initiative
FFHC recovers all kitchen scraps after each meal and also encourages recycling. No personal waste baskets are
provided in the office and all waste must go through the recycling process.
Grow
th rate 18.6 14.4 4.0 13.7 4.5% % % % %
2
2
Number of electronic documents
Video conferencing and tele-education
Online education
Paperless meeting
128,530
1,161 sessions
31,625 people
192 sessions
2014 2015 Growth
130,489
1,172 sessions
60,400 people
455 sessions
1.52%
0.95%
90.99%
136.98%
60
2014年
2015年
111
127
10,21910,630
2.9
3.3
11,88111,370
3,671
4,354
Electronicstatementssent
(10 thousand pcs) (10 thousand pcs)
(10 thousand pcs)
(10 thousand pcs) (tons of CO e)2
Electronicstatementsubscribers
eDMrecipients
No. of electronicinsurancepremium receipts
Total carbonreductionsfrom paperlessinitiative
Paper and paper containers
Aluminum foil, plastics and PET bottles
Aluminum cans, iron cans, and glass
Batteries and electronic devices
Total
19,308
641
520
2,405
22,874
2014 2015 Magnitude of change
19,661
1,796
1,645
1,176
24,278
+1.8%
+180.2%
+216.4%
-51.1%
+6.1%
"Comparison of Waste Recycling at FFHC including all sites in 2015" (Unit: KG)
Since FFHC launched the zero office waste basket program two years ago, the Headquarters building and IT building have reduced their waste production by 53.34%.
Note: 51.1% reduction in batteries and electronic devices - in 2015 FFHC donated 330 refurbished personal computers and
notebooks to disadvantaged groups. This represented an increase of 194 units on 2014 and reduced waste by 1,164 kg. The
IT building of group subsidiary First Bank also switched over to using only rechargeable AA and AAA batteries (except for
clock batteries).
Integration with environment education - Changing employee habitsSTEP 7
FFHC has introduced environmental education at the grassroots level in keeping with the philosophy that "education is
crucial to a better environment." Apart from arranging for the new employee training class to take part in morning community
service events to strengthen and implement environmental conservation concepts during training, general administration
personnel have been designated as the energy-saving and carbon reduction promotion cadre as each unit. At the end of
each working day, they must fill out the energy-saving assessment forms to ensure that energy-saving and carbon reduction
measures are being followed. The cadre also changes over time as they rotate through different positions. Using this system,
every employee is rotated through the energy-saving and carbon reduction promotion role. From 2012 to 2015, 270
energy-saving and carbon reduction cadre completed their training. This will gradually expand the ideals of carbon reduction
throughout the group and from there to our customers and suppliers.
FFHC believes that a better environment starts with education, so we have dispatched personnel to attend professional
environmental education training courses and acquire certification as environmental educators. Such personnel are now
responsible for the planning of internal environmental education courses and for compiling the course content. This will help
instill the concepts of environmental education and ecological conservation in all employees. In 2015 we began organizing
online environmental education courses for employees to enhance their understanding of environmental sustainability. The
course content is as shown below. A total of 6,191 people undertook 21,668 hours of training:
STEP5STEP6STEP7
Green Finance
First Financial Holding CSR Report
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61
2013
78,188 KG
2015
36,479 KG53.34%
0The zero office waste basket program
Introduction to global environmental problems, energy conservation and carbon reduction 51minutes
28minutes
34minutes
22minutes
27minutes
26minutes
23minutes
Course DurationCourse Content
Total 3 hours minutes31
To enhance the quality of life, improve the living environment as well as take care of the middle class and minority groups, and
return to the original mission of "improving the cityscape and rebuilding for a better home" for urban renewal, all buildings
after urban renewal must satisfy the greening indicators and minimize the discharge of waste heat, CO , methane and
wastewater. Since 2009 First Bank has actively cooperated with the government's promotion of urban renewal integration.
First Bank has spared no effort when it comes to assisting with integration and professional consultation on self-managed
urban renewal cases in particular. From urban renewal planning, trust management, rebuilding costs, insurance, construction
management to the subsequent completion, handover and loan splitting, we offer one-stop financial services that ensure
the original residents don't have to worry about having to raise massive funds needed for rebuilding. Once urban renewal is
complete they can enjoy the benefits and the difference between the selling price and rebuilding cost all go to the landowner.
In this way, the dream of self-managed urban renewal comes true and old assets are traded for the new.
Self-managed urban renewal project
Developer-consolidated urban renewal projects
Total
4.278 billion/5 cases
NT$19.995 billion/19 cases
NT$24.273 billion/24 cases
Approved amount and casesType Landowners
363 people
774 people
1,137 people
*Out of the 24 urban renewal cases, 12 applied for the Green Building Labeling. The remainder satisfied the greening indicators for urban renewal.
External environmental partnerships
(1) Supporting urban renewal for a green home
Climate change and global warming
Ecological systems and ecological balance
Natural disasters
Environmental impact and care
Sustainable development
Environmental education and citizenship
2
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First Financial Holding CSR Report
First Bank combined the ideal of sustainable environment development with core competencies to help green industry
operators secure the funds needed for business development. This included the launch of the "No.1 Promoter in the Energy
Industry" financing plan targeted at Energy Service Corporation (ESCO). Funds are released based on the progress made
by the business in energy-saving improvements in order to accelerate improvements to energy efficiency and conservation
as well as cooperate with the Bureau of Energy of Ministry of Economic Affairs' Million Rooftop PVs" project. Through the
"Renewable Energy Creation Loan" we can help business owners purchase renewable energy generation equipment. We
have also launched the Green Energy Industry Loan in support of the Executive Yuan "Dawning Green Energy Industry
Program" for the six key green industries of PV, LED, wind power, bio-fuel, hydrogen energy, fuel cell and electric vehicles. To
realize our green sustainable financing policy and support the government's Productivity 4.0 Initiative for boosting industry
transformation, we have drawn up the "Green Sustainability-based Industry Transformation Lending Program" to help
Taiwanese enterprises with their transformation and to take advantage of international low-carbon business opportunities.
(2) Helping industry transformation through green energy financing
Unit: Million NTD
2014 / 12 / 31 2015 / 12 / 31
ESCO industry
Renewable Energy Creation Loan
Green Energy Industry Loan
Total
57
633
11,290
11,980
92
865
12,777
13,734
430
1,309
28,084
29,823
528
1,655
26,250
28,433
Loan balance Loan balanceApproved amount Approved amount
STEP71-11-2
Green Finance
Loans for power,
w a t e r a n d f u e l - s a v i n g
projects and equipment
Help business owners
purchase renewable
energy generation
equipment.
Industry transformation and
upgrade program for the six
key green
energy industries
63
ESCO industry
Renewable Energy Creation Loan
Green Energy Industry Loan
Green loan
2015
FFHC founded the "Organic Agriculture Assistance Project"
and launched the first charity co-branded card based
around "organic and health" and "land & environmental
protection." Out of the amounts spent with Leezen cards,
6‰ will be reserved for charitable purposes, and donated
to the Tze-Xin Organic Agriculture Foundation and the
Bliss and Wisdom Foundation of Culture and Education.
Through the card, First Bank partners with customers to
help small organic farmers that lack manpower and money
in order to protect the land of Taiwan.
First Venture Capital is continuing
t o i nve s t i n u n l i s t e d c o m p a n i e s
within the green industries with
shareholder oversight used to manage
the environmental or social risks
generated by their operations. As of
the end of December 2015, green
industries accounted for 15.13% of all
investments. The figure on the right
shows the industries being invested in.
Leezen card-holders and donations have continued to grow over the past three years
(3)Joining customers in promoting organic agriculture
(4) Green investment
Solar power
Chemical engineering
Optoelectronics
Electronic parts
Semiconductors
Other
Distribution of green environmentally-friendly industries
47%23%
11%
8%6%
5%
To fulfill the social responsibility of the financial industry in the financial supply chain, First Bank applied the finance
industry's ability to direct cash flow to safeguarding the environment. The advantages of implementing the Equator
Principles were assessed in 2013 and industry risk factors proposed based on the characteristics of individual domestic
industries. In February 2014, the Equator Principles were incorporated into the loan review principles to define the "Green
Financing Review Principles". This applies to all corporate loans regardless of credit amount. First Bank became the first
domestic financial institution to incorporate the Equator Principles into loan reviews. New or existing customers seeking
an extension must sign the declaration before drawing on their line of credit. Violation of the Equator Principles will result
in their line of credit being stopped and the loan recovered. The Principles are divided into three phases: loan application
review, pre-draw commitment and post-draw management. During the loan application review phase, the potential
(5) Formulation of the Green Financing Review Principles based on the Equator Principles
3,846
2013
803
2014
933
2015
1,343
4,736
10,463
Leezen Card-holders
Leezen Card donations(NT$10,000)
64
In addition to internal energy-saving and carbon reduction initiatives, FFHC also requires businesses that it has dealings with
to take environmental sustainability seriously as well. To this end, FFHC set up the 3-step supply chain management process
in 2013 and identified potential child labor, forced or compulsory labor risks in the supply chain. Supplier management is
used to select vendors that satisfy the spirit of sustainable development as long-term partners including: Suppliers involved
with the purchasing of energy-saving equipment, purchasing and maintenance of IT equipment, construction and interior
design, purchasing of business-related OA equipment and consumables, and building maintenance. In 2015, 99% of all
purchasing came from local suppliers to ensure the stability and localization of the supply chain as well as create local job
opportunities.
In 2015 FFHC extended the scope of green financing review principles to overseas sites, leasing companies, and banking
and insurance products. Except for syndicated loans, for business loans overseas branches must now explicitly state in
the "Equator Principles Evaluation Form for Overseas Branches" the basic scope of their review. The lending documents
must also be annotated with text to the effect that "the borrower has been asked to comply with local laws and to conduct
self-inspection on whether their products and processes fulfill their environmental protection and corporate social
responsibilities." In this way, FFHC partners with the borrower on protecting the local environment; the 34 funds that have
products listed with the bank have now all signed the "CSR Declaration." with 6 out the 7 insurance companies providing
their CSR report and 1 signing the "CSR Declaration" in order to support the development of a sustainable environment
together.
vs
(6) 3-Step supply chain management process - Preliminary screening, concurrent declaration, post hoc management
environmental or social risks of each industry are studied through assessment tools and on-site inspections. Companies
with a history of environmental pollution or harming the public interest are required to provide their corrective actions
or planning; before they can draw on the line of credit, the business must sign a declaration committing to conform to
human rights and environmental laws as well as fulfill their corporate social responsibility; after lending, in the event of
environmental pollution or harm to public interest, the company is required to propose an improvement plan and timetable
immediately. Active assistance or financing is also provided to help the implement corrective action. Companies that are
slow to make improvements are then put under pressure through clauses that introduce higher interest rates, impose a stop
on their line of credit, and progressive recovery of loan funds. As of the end of 2015, 15,159 borrowers were successfully
convinced to issue a CSR declaration. Through 3-phased approval process for financing we can help protect the environment
and ensure that environmental protection is practiced by businesses. Due to a number of public safety incidents in Taiwan
relating to environmental pollution and food safety, our enforcement of the Equator Principles was welcomed by the general
public and regulators. This led to its inclusion in the Bankers' Association loan approval principles. This will help reduce the
environmental and social risks caused by loans from the finance industry.
All corporate borrowers
regardless of the loan
amount are required to
sign the declaration. The
signing process is used
to educate the customer
on the meaning of the
Equator Principles in
order to protect the
environment together.
1. New loans amounting
to US$10 million or
more in any industry.
2. Project loans where
the expansion or
upgrading of existing
equipment may have a
major impact on society
and the environment.
Green Financing Review Principles
Equator Principles
Green Finance
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Supplier Management Mechanism
"Declaration on Human Rights and Environmental Sustainability Clauses" - Forming partnerships for environmental sustainability.
Article 1. Both parties shall comply with relevant labor laws and regulations, protect the legal rights and interests of employees, and respect internationally recognized principles on fundamental labor rights such as: Prohibition on the use of child labor (ban on hiring anyone under the age of 16), looking after disadvantaged groups, eliminating all forms of forced labor, elimination of discrimination in recruiting and employment, and non-infringement of fundamental labor rights.
Article 5. Both parties shall follow relevant environmental laws and regulations and international standards to properly protect the environment and shall endeavor to promote a sustainable environment when engaging in business activities.
FFHC values the fairness and transparency of the purchasing process when defining tender specifications. Suppliers are
also asked to sign the "Declaration on Human Rights and Environmental Sustainability Clauses" covering non-use of child
labor, environmental protection, safety and health management, environment and energy-saving management systems, CSR
policy, fundamental labor rights and labor management. Suppliers must commit to establishing concrete environmental and
energy management systems, adopting the best pollution prevention and control technologies, appropriate protection of
the natural environment and striving to realize the goal of environmental sustainability. We hope this will draw the attention
of suppliers to environmental issues so they can also join the ranks of environmentally sustainable development and carry
out supplier risk management. In 2015, all 289 of new and renewed suppliers signed the "Declaration on Human Rights and
Environmental Sustainability Clauses". Between 2013 and 2015, 697 companies agreed to participate and do their part for
environmental sustainability.
FFHC regularly audits qualified suppliers to check for environmental, occupational disaster or labor rights problems. If these
are proven then the supplier is asked to provide an improvement plan or their contract is terminated and the supplier added
to the monitoring list.
Suppliers are educated on the importance of environmental protection before bidding. The FFHC CSR Report in electronic format is also provided every year to ask for their support for the CSR policy.
Potential bidders are checked for any violations of environmental or human rights laws. If such violations are found, require the bidder to state what corrective actions were taken or be excluded as a potential partner.
Signing of the "Declaration on Human Rights and Environmental Sustainability Clauses"
The supplier is regularly audited for violations of environmental or human rights laws. Where there is significant impact on the environment and society then the contract may be terminated at any time. This encourages suppliers to protect labor rights and the environment.
A supplier evaluation mechanism has also been established for purchasing by overseas sites. A "Human Rights and Environmental Sustainability Evaluation" should be filled out before purchasing.
66
Regular education Preliminary screening
Concurrent declaration
Post hoc management
Overseasmanagement
To ensure responsible investment and use of funds by group companies, none shall not invest in companies added to the "Do-
Not-Investment for Violation of Social Responsibility List" by the quarterly meetings of the group's securities investment
platform for violations of social responsibility (such as labor safety accidents, food safety accidents, violations of corporate
governance and labor rights...). This is to avoid environmental pollution and harm caused through our investment activities.
The six domestic funds (Small Capital, Innovation, Great China, High-Tech, OTC and Greater China Balanced) of FSITC will
not invest in such companies either. 44.5% of the companies that FSITC has invested have issued CSR reports and this helps
to safeguard customer assets.
(7) Establishment of "Group Do-Not-Invest List"
Article 6. Both parties shall establish a concrete environment and energy-saving management system. They shall also effectively implement a corporate culture of environmentally sustainable development in order to protect the planet, conserve resources, and conserve energy.
Article 25 of the Standard Purchasing Contract : Our company has the right to terminate this contract if the vendor is in violation of its CSR policy in a manner that impacts significantly on the environment and society.
The coming of digital finance means the physical transaction model is gradually changing. Due to the trend and consumer
demand for mobile banking, and to take advantage of the opportunities offered by digital banking, the First Bank "Electronic
Finance Division" was expanded in September 2015 to become the "Digital Banking Division." The new division will focus on
new mobile payment, digital experience and big data analytics in order to keep up with developments in "mobile-first" and
"finance technology."
2015 is year zero for mobile payment. To satisfy the needs of the Slide generation, First Bank and Taiwan Mobile Payment
have jointly launched mobile phone credit cards and mobile bank cards to provide the general public with a secure and
convenient mobile payment service for transfers, shopping and payments at any time in any place.
(8) Virtual and physical integration
The mobile phone Cards
The mobile phone as the credit card and bank cardBy integrating credit card and bank card functions into mobile phones as a replacement for physical cards now in use, this
not only enhances customer convenience but also reduces the need for issuing plastic cards and the associated carbon
emissions.
Replace by
Green Finance
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In response to trends in the interactive experience and exploit opportunities for digital transformation, the business
development strategy of FFHC has defined "the customer's most helpful and accessible professional partner" as the target
with optimizing digital channels, strengthening digital application innovation, and enhancing customer segment service and
marketing as the three main dimensions.
Following the principle of providing customers with direct access to financial services over virtual channels, new
electronic channels (Internet banking, mobile banking, mobile bank card and electronic payment) functions have
now been added. In addition to directing existing deposit/remittance businesses to electronic channels, virtual
transactions are also being developed for trusts, financial planning and loan businesses to provide customers with
easy-to-use and convenient financial services.
8.1 Service proposals for optimizing digital channels
(1)Enhancing virtual financial services:
A Business Internet Banking: The "First Bank eBank App" launched in May 2015, allows
business customers to query their accounts from a mobile phone or tablet, a first for
domestic banks; customers now have access to almost all query functionality including
information about imports/exports and global e-banking through the e-banking app.
B
C
Consumer Internet Banking: The "e-Action App" offers a variety of innovative functions
aimed at providing secure and convenient mobile financial services that meet the
everyday needs of people today. Examples include cash transfer using QR Code over the
mobile phone, making payment by scanning a barcode, or even authorizing payments
using Touch ID (fingerprint recognition) on an iPhone. Night market cloud mobile
payment has now been pioneered at the Ningxia night market in Taipei. You can now use
the mobile banking app on the mobile phone to make payments at night markets even if
you should leave your wallet at home. This innovation completely changes old ways of
consumption and offers the convenience of a high-tech lifestyle.
Personal Online Loan Applications: First Bank now offers the "Loan Platform" platform
offering 24-hour online personal loan service. Customers can use their mobile phone,
tablet or desktop PC to log into the platform to apply for home or credit loans. Using the
online helper "LOVE LION", they can receive a personalized line of credit and interest
rate information within one minute. Internal verification is carried out through the Loan
Platform and the funds can be released within one day of the proper documentation
being provided. For customers with temporary cash flow requirements this service comes
as a life-saver.
68
D
E
F
Credit Cards: The "First Card" app provides online applications, credit card promotions
and mobile phone payment functions. It is also integrated with other popular information
such as air pollution, weather and charity. Free space on eDMs, electronic statements
and the website for fund-raising advertisements to 9 charities: the Sunshine Welfare
Foundation, Chinese Children & Shelter Association (CCSA), Cosmic Light Holistic Care,
Chung Yi Social Welfare Foundation, Taiwan Foundation for the Blind, the R.O.C. Down
Syndrome Association, the Chinese Christian Relief Association, the Genesis Social
Welfare Foundation and Hondao Senior Citizen's Welfare Foundation. The "First Card"
app is also used to provide additional exposure and boost the total amount of funds
raised. The app allows donations to go directly towards helping disadvantaged groups
throughout Taiwan and lets customers donate at any time. The number of donors and
amount of donations have continued to climb in recent years with more than NT$720
million donated to date.
Securities: First Securities upgraded the functionality of the "e-Move" app by
incorporating sub-brokerage services for Hong Kong and American stock markets. The
integration with existing domestic futures products backed by physical channels and
customer service provides customers with a complete mobile domestic and overseas
investment and trading platform.
Life Insurance: First-Aviva has set up a mobile service platform app to provide policy
holders with functions such as policy query, mobile payment, online policy amendment
and lifestyle information.
FFHC strives to work with our customers to protect the environment. Customers are also encouraged and educated to use
the electronic channels in order to reduce the need for over-the-counter transactions. Exceptional progress has been made
after 3 years:
Utilization of electronic channels have grown by 3.88% in the last three years:
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3.88%74.2%2015
70.32%
2013
Grown
First Bank's leading position in business finance as well as comprehensive overseas network have been used to set up
the First Bank International e-Banking (including "First Bank eBank - Overseas Branch Internet Banking, and "Global
e-Banking Service"), international business cash flow (e.g. Supply chain financing, sales chain financing), international
consumer cash flow (e.g. international third-party payment) and international clearing system.
One of the innovative applications of International e-Payment is international payment of tuition and miscellaneous
fees for Chinese students. A partnership has now been set up with "Alipay" and "Tenpay" which account for nearly
80% of the online payment market in China as well as more than 30 local universities. First Bank also became the first
financial institution to receive regulator approval to offer WeChat Pay services and to open a WeChat Official Account.
WeChat Pay can now be used at up to 20,000 merchants including leading department stores and shopping districts,
Taiwanese specialty stores, tourist shopping districts such as the "E-Da Outlet Mall", "M-Taxi", "Hi-Life" convenience
stores, "Fong Pu Tea Company." This makes First Bank the largest provider of WeChat Pay's micro-payment services to
Chinese tourists in Taiwan. Chinese tourists can immediately activate their WeChat Pay wallet upon arrival in Taiwan.
To take advantage of WeChat's advantage in social networking, we have also set up a "WeChat Official Account".
Chinese tourists can follow "Taiwan First Choice" to receive information about merchant promotions and directions.
This helps to generate further business opportunities from international shopping after they return home, forming
a perfect online to offline O2O cycle as well as secondary sales. For Taiwanese merchants this means more potential
transactions.
(2) Leveraging the strengths of the international cash flow platform
In response to the coming of digital finance, FFHC is leading the way on the building of a smart, high-tech digital bank
that not only provides a variety of digital equipment. First Bank is also the first bank in Taiwan to introduce the "Virtual
Teller Machine". This innovative service breaks away from the traditional over-the-counter service model and uses the
advantages of the physical channel to seize the business opportunities from virtual channels. The integration of virtual
and physical channels provide customers with a digital finance service that offers more options. The new "Digital
Banking Service Area" is equipped with ATM, deposit machines, passbook entry machines, voice banking machine as
well as foreign currency ATMs, interactive screens, virtual teller machine (VTM) and night-time projection equipment;
the "Digital Banking Experience Area" in business branches incorporate digital equipment such as a digital writing
table, i-Pad, personal computer and large multimedia digital signboard to let customers experience the convenience of
digital banking.
8.2 Strengthening innovation in digital applications
(1)Physical channel reforms
(2) International e-Payment
Chinese tourists can use WeChat Pay to pay for
taxi fares
The "WeChat Official Account" set up by First
Bank provides effective diversified marketing for
Taiwanese merchants and generates business
opportunities from international shopping.
70
Social network management (e.g. Facebook) is used to increase the channels for
customer communication. It is used to provide customers with information about
promotions and to gage customer identification with First Bank and their service
requirements. Apart from customer relations management, it can also be used to reach
out to younger customers. The First Bank fan page on Facebook had accumulated more
than 580,000 fans by the end of 2015, making ours the second most popular social
media fan page managed by a domestic financial institution.
First Bank has already begun developing a big data analytics system to gain a better understanding of customers, help
customers quickly solve their problems and increase the frequency of customer interaction. Big data analytics will be
used for customer segment management. "Smart customer management and effective channel utilization" will be used
to carefully manage all potential customer contact opportunities, collect digital data, create personalized real-time
interactive marketing and services, provide a better experience, improve customer satisfaction and ultimately create
new opportunities for business development.
Provide financial services in different industries through
virtual channel and cross-industry alliances. This
increases connectivity between industries and financial
services while also expanding the cash flow service
application environment. First Bank's "e-Payment"
service has partnered with Yam blog to promote
shopping and cash flow services in cooperation with
social network bloggers. A co-branding partnership
has also been set up with Yam for Kids to teach kids
about proper financial planning and introduce future
customers to First Bank at an early age.
In the future, big data will be used to interact in real-time with customers. When the customer browses through
corporate platforms they will receive product recommendations tailored to their personal preferences. The big data
platform is expected to complete development in 2016. Customer interaction data on the corporate website will be
collected, collated and analyzed in order to carry out personalized advertisements. This will bring about changes to
First Bank's physical and cloud channels. The quality of service and marketing effectiveness of each channel will also be
greatly increased.
(4)Cross-industry cooperation
(2)Precision marketing
(3) Social network media
(1)Big data
8.3 Enhancing customer segment service and marketing
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2The domestic financial market is now facing changing consumer habits from the mobile
generation. Statistics indicate that the increase in proportion of the Taiwanese people
shopping on smart mobile devices is the highest in the Asia-Pacific, making Taiwan a region
that frequently uses smart mobile devices for shopping. Information security however is the
most important factor when customers decide to use mobile payment or not. The challenge
now facing the finance industry is how to balance business innovation with building a secure
and stable IT environment that guarantees the information security of the customer and the
system. FFHC has always treated the security of customer data as our overriding business
principle. Apart from receiving the Security & Golden Quality Awards" for four successive
2-1 Protection of customer rights
The financial product or service contracts that financial consumers sign with us all follow
the principle of equality and mutual benefit. We manage the financial products or services
we provide in good faith. On the protection of customer rights, all FFHC subsidiaries
comply with the regulations of the "Financial Consumer Protection Act" in the defining and
implementation of our procedures and internal controls. Through comprehensive processes
and employee training we have cultivated a service philosophy of "the customer comes first"
that prevents harm to customer interests. Comprehensive processes
Gold Quality Award - Credit Card Data Certificate of appreciation
years, First Securities also passed ISO 27001:2013 Information Security Management system certification by the BSI and
was certified on the revised standard in 2015. In the future, we will continue to refine our IT security management standards
and operations in order to meet international IT security management standards and protect consumer rights.
First Bank plans to use "Accelerated virtual-physical channel transformation and management of digital marketing
experience" to realize the Digital Finance 3.0 Policy of the Financial Supervisory Commission. The launch of 12 online services
through will make us an all-channel customer experience bank. Apart from innovations in financial products and services, we
will adhere to the relevant regulations in the "Financial Consumer Protection Act", "Personal Information Protection Act" and
"Regulations Governing Internal Operating Systems and Procedures for Banks Conducting Financial Derivatives Business"
while also recommending products that match the customer's attributes in order to help them protect their assets.
First Security- Safeguarding customers
2-1 Protection of customer rights
2-2 Protecting the security of customer information
2-3 Protecting our customer's assets and exercising duty of care
72
Employee training
In addition, since full disclosure is also a part of consumer rights protection, the First Bank
website regularly discloses the fee standards for all types of businesses, the standard
contract templates for all businesses, loan rate calculators and other related product
information; First Securities also publishes its fees and product operations on its website;
the FSITC website publishes its fees, profit distribution, risk attributes and investment
information. Application forms also indicate the related fees, risk information and other
information. All product information is fully disclosed in the prospectus and product guide;
First-Aviva publishes its policy rates and claims process on the website to make it easy for
consumers to access product and service information.
To protect the rights of card-holders, First Bank credit cards have their fees published in the Credit Card section. To prevent
credit card theft, SMS and e-mail is immediately sent after transaction. If any anomalies are detected then dedicated staff will
contact the customer as well. These measures are all intended to protect the consumer rights of card-holders.
2-2 Protecting the security of customer information
2-3 Protecting our customer's assets and exercising duty of care
In accordance with the "Joint Marketing Firewall Policy and Guiding Principles for FFHC and its Subsidiaries" a customer
privacy statement is published on the homepage of FFHC and our subsidiaries. Employees are also frequently educated
and trained on privacy protection to prevent leaks of personal and customer details. In 2015, the completion rate for
Personal Information Protection Act training was 100%. To effectively protect the privacy and moral rights of all customers
as well as to prevent any theft, tampering, damage, loss or leaking of data, we have upgraded our IT security process to
international standards through ISO/IEC 20000 and ISO 27001:2013 IT service and security certification in accordance
with the "Information System Security Standards for Financial Institutions", "Security Control Standards for Financial
Institutions Operating Internet Banking Services", "Regulations Governing the Protection of Personal Information Files for
Non-Government Agencies Designated by the Financial Supervisory Commission" and the information security standards
of international credit card associations. In 2015 both First Bank and First Securities achieved certification for ISO
27001:2013. This will enable to safeguard the personal information of our customers in an age of high-speed technological
innovation as well as strengthen the confidentiality of internal business information. In 2015, there were no customer
complaints with outside agencies on the violation of privacy or leaking of information by FFHC.
The sheer number and variety of new financial products coming on to the market is very bewildering. To let customers know
what financial planning products are best suited to their needs, sales representatives at each company must comply with
the regulations such as "Rules governing the behavior for wealth managers and financial product salespeople". All customers
must complete the Know Your Customer (KYC) assessment before being provided with suitable investment portfolios
or products based on their wealth management requirements, investment attributes and risk tolerance. Regular system-
generated reports are then used to analyze customers' investment turnover, investment performance, risk attributes and
the appropriateness of their investment portfolio. We also regularly convene "Financial Planning Product Review Meetings"
and "Financial Planning Product Performance Management Working Group Meetings" to classify all financial planning
products by level of risk as well as examine the performance and risks of listed products. The financial planning product
research and analysis system is also used to help manage the risks of customers' investment portfolios. Advertising and
marketing activities are also required to conform with laws and self-management regulations in order to live up to the
trust that the customers placed with us through their assets and fulfill our obligation for prudent management. In 2015 no
FFHC subsidiary sold any banned or disputed product, or provided products and services that were inadequately labeled,
or violated the relevant laws and self-management regulations. There was however some conflict between the marketing
script used by First-Aviva Life Insurance for telemarketing of insurance products and the "Regulations Governing Business
Solicitation, Policy Underwriting and Claim Adjusting of Insurance Enterprises." The sales process has since been reviewed
and revised.
Green Finance
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3
First Bank
First-Aviva
First Securities
A total of 14 financial planning product review meetings were convened
throughout the year. The review meetings approved 124 financial planning
products and gave provisional approval to 81 products. 26 products met the
criteria for de-listing.
A total of 45 internal product R&D team meetings were convened during
the year to discuss product development, listing, direct changes and partial
amendments. The product development committee was also convened
9 times. Product performance after listing was reported at the quarterly
meetings of the product development committee.
Company Name Key Task
1.The product review committee met five times during the year.
2.All marketing campaigns and advertising were reviewed in accordance
with the advertising checklist then submitted to the Taiwan Securities
Association for vetting before being published.
3-1 Energy-saving and sustainability
FFHC signed up to the Carbon Disclosure Project (CDP) set up by leading international
institutions in 2013. We respond to the regular questionnaire surveys distributed by the
CDP and actively participate in overseas environmental protection events. The platform
allows us to learn about how large enterprises around the world are currently managing the
operating risks from climate change. In addition, FFHC subsidiaries' sites and the 190 First
Bank branches in Taiwan also turned off their lights for 1 hour at night as part of the "Earth
Hour" (3/28, the last Saturday of March each year) and "Earth Day" (4/22) to do our part for
energy-saving and carbon reduction.
First Environment- Caring for the land
3-1 Energy-saving and sustainability
3-2 Yunlin Organic Edamame Carnival
3-3 Adoption of toxin-free rice paddy
3-4 Green volunteers
3-5 Environmental conservation
74
3-2 Yunlin Organic Edamame Carnival
To give card-holders a way of supporting and identifying with the philosophy of rehabilitation through organic agriculture
through the Leezen co-branded cards, FFHC issued a warm invitation to card-holders to participate in the "Yunlin Organic
Edamame Carnival" co-organized by the Tse-Xin Organic Agriculture Development Foundation. Displays on the organic
concept, tastings of vegetarian cooking and farmers' market introduced card-holders to the vitality and health of going
organic. "Bean-bikes" were also provided on the day to let card-holders ride to the Mayuan Organic Edamame Farm, bend
down and pick organic edamame beans, experience the wonders of the organic soil, and feel the hardships of the farmers.
The event won praise from card-holders for helping to build bridges with organic farms.
The "Yunlin Organic Edamame Carnival" was held to cultivate an appreciation for nature among the general public.
Related activities and classes were also organized to let participating adults and children learn about the benefits of
organic agriculture. The event was well-received.
3-3 Adoption of toxin-free rice paddy
FFHC took part in the
"Toxin-free Rice Paddy"
a d o p t i o n c a m p a i g n a t
S a n x i n g To w n s h i p i n
Y i l a n C o u n t y a i m e d a t
boosting public interest in
land conservation for the
second consecutive year.
Apart from increasing the
income of rice farmers,
it also encouraged rice
farmers to practice toxin-
free cult ivation and to
develop the agricultural
economy. The process of
pesticide-free agriculture
taught a l l part ic ipants
Adoption of "Toxin-free Rice Paddy"
to respect the land and love the planet. The harvested rice was donated to disadvantaged groups and low/medium-income
families in the community as part of our policy of caring for local communities.
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3-4 Green volunteers
FFHC launched the "Green Volunteer Recruiting Program" which used
Facebook and the First Bank monthly magazine to recruit employees
to help with the harvest at under-manned organic farms. Their insights
from participating in the event were then shared through the First
Bank monthly magazine to maximize their influence and level of
participation. So far, the recruitment quota for organic volunteers has
been frequently filled right away upon release. This has helped small
organic farmers overcome manpower shortages. In 2015 a total of
44 green volunteer events were hosted, attracting 1,103 people and
benefiting 2,449 people.
FFHC offers two teams of volunteers each month to help organic farms with seedling cultivation and harvesting. The volunteers always respond with enthusiasm despite the chilling winds or blazing sun.
3-5 Environmental conservationFFHC launched the low-carbon vegetarian "1 Movement" in 2013. Employees are asked to not eat red meat one day a week.
No red meat is served by the employee cafeteria on that day either to promote "Eat vegetables for health, eat less red meat".
This represented actual action taken to promote energy-conservation and carbon reduction while also reducing the amount
of waste cooking oil.
Organic agricultural products are marketed through the FFHC employees co-op. The employee cafeteria also serves organic
vegetables every week. These are all sourced by personnel from General Administration who visit the organic farms in
person to verify their production process. As every vegetable can be traced to their source this ensures the peace of mind of
employees.
Every dish is labeled with their calorie count and employees can pick the dishes they like. The organic vegetables are always the most popular dishes with employees.
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The "Sen ior Ass i s tant Manager Career Development Program" was introduced in response to an anticipated wave of retirements and accelerate the cultivation of management cadre. Online Life Orientation Assessment, the Career Personality Aptitude System and 180-degree Management Competency Feedback and other tests are used to help assistant managers understand their own capabilities; outstanding branch managers also serve as the "internal coach" for trainees to pass on their management experience and help them become high-performance managers. Develop customized "Individual Development Plan" along with identifying and cultivating talent with high performance or potential.
Organized financial service system courses on big data analytics, Bank 3.0 digital finance development trends, and financial technology; assigned employees to attend courses on third-party payment services, online financial development trends, Fintech and digital marketing. Optimized internal and external training for sales and management; hosted 307 e-learning courses. Online training was used by management and non-management personnel 61,349 times. Each person received on average 58 hours of online and physical training hours. Average training cost was NTD6,580.
Carried out personnel competency
and manpower evaluations to
strengthen career management
Prepare for Bank 3.0 development
trends by enhancing the ability of
employees to use digital learning for
professional know-how
Happy workplace
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53% of managers are female. The majority of managers and employees are female so gender equality has been realized. Chosen for inclusion in the "Taiwan High Compensat ion 100 Index" for the second consecutive year. Continued to participate in the salary surveys of business management consulting companies and to gather the remuneration standards of our overseas competitors on a regular basis to ensure the remuneration and benefits of our overseas units are reasonable and competitive.
When a capital increase by NTD23.52 billion in cash was conducted in 2015, 15% of the new stocks were retained and offered to employees of group companies at below-market prices. The offer was welcome by most employees and all options were exercised. FFHC provides multiple channels for employee communications and whistle blowing, with whistle blowers protected against improper treatment. The internal website, the bi-weekly publication and monthly publication all enable employees to keep track of company developments.
The following initiatives were launched to promote the balanced physical and mental development of employees: psychological counseling, regular clinics, full-time nurses and support for serious illness/injury, nutritionist advice and comprehensive insurance plans. A tobacco-free workplace is enforced. Public areas are also regularly tested on CO2 concentration, illumination and drinking water. Workplace safety and health representatives are appointed with regular emergency drills carried out. Received the Health Promotion Mark in 2015 (Healthy workplace certification offered by the Health Promotion Administration). Subsidies are provided for marriage, parenting, funerals, birthdays, employee travel, local/overseas continuing education, and serious illness or injury. Unpaid leave is offered for parenting, continuing education and caring for sick or injured dependents. Breast-feeding rooms have also been certified for excellence.
Equal pay for equal work and
providing a fair and competitive
compensation scheme
Providing support channels
and stock options from capital
increase to encourage employee
participation and feedback
Building a happy workplace and
promoting employees' physical
and mental well-being
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1
First Work - The right people in the right place
1-1 RecruitmentThe great importance placed on talent by FFHC can be seen in its recruitment events. The annual recruitment drives all strive for innovations and breakthroughs. Apart from having top executives take an active role in "Campus Recruitment Events" and describe FFHC's corporate vision, outstanding alumni who are now management associates also share their experience to boost interactions with students, and stimulate interest from students of all academic backgrounds in the finance industry. 2015 marked the 11th year of the MA program. We recruit the top talent in all fields based on our business requirements including many qualified attorneys and accountants as part of our elite development strategy.
The Group has used outside professional organizations for recruiting new employees in order to prepare for the challenges of digital finance. We have also promoted our merit-driven policy and increased exposure for our recruiting programs through different media channels including announcements, campus information sessions and the Internet. Our First Bank subsidiary also used a variety of channels including outside headhunting agencies for the first time in 2015 to recruit mid- and high-level managers for headquarters. Internal and external recruiting processes were also used to hire specialists in programming, web design, risk management, financial marketing and big data analytics. In addition to raising the quality and competitiveness of our workforce, we are also stepping up our recruitment of new blood in digital technology to prepare for future manpower needs linked to digital finance transformation.
The principle of equal pay for equal work is followed during recruitment. We provide competitive compensation and employ our full quota of handicapped employees who follow the same career development path as regular employees. At the same time, we organize
Employees form the core of the financial service industry. FFHC has not only has brand image for solid management but is also working actively to build a "happy workplace." We have long followed a philosophy of "treating employees as the most precious company assets." We are committed to creating an ethical, open and cooperative working environment for employees. We also encourage employees to realize their full potential. We have actively responded to government policy by signing the "Happiness Enterprise Declaration" with no retrenchments and salary cuts. Promotions and salary increases are used to reflect business performance in an appropriate way each year to share the fruits with employees.
1-1 Recruitment
1-2 Employee structure
1-3 Diversified employment
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1-2 Employee structure
At the end of 2015 our Group had 9,210 regular employees. This included 3,850 men and 5,360 women for a male:female ratio of 42:58. 18% of our workforce are in management and women account for 53% of the management. The fact that women outnumbered men in both management and employee roles showed that we offer a fair workplace with gender equality.
The Group employed 491 atypical employees (including casuals and security), or 5.3% of the total workforce.Atypical employees that perform well are offered the opportunity to become regular employees when openings become available. In 2015, a total of 6 atypical employees became regular employees.
2015 Employee Demographics - Education Total no. of employees in 2015 - By role
Regulatory
Employees
University4,051
Graduate1,598 Post-Graduate
7
Junior High School or below85High school / Vocational school1,009
Technical College2,010
summer bank internships for university students in partnership with the Ministry of Education. This gives students interested in entering the financial sector a chance to have a taste of the industry. Temporary summer positions are also provided to economically disadvantaged youths to not only enhance industry-academic cooperation but also hopefully, change their lives. In this way, CSR is realized in our hiring strategy. In 2015 we hired 992 new employees and the ratio of women to men was 60:40. All of our offices also give preference to local residents to ensure their employment opportunities. Our core operations are located in Taiwan and 100% of top executive positions are held by local nationals. 1-1
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Male 772
Male 3,078Female 869
Female4,491
New employees as a percentage of total workforce
2015
Taiwan
Overseas
Total
No. of employees at end of
2015
9,210
5.80
0.71
6.51
247
50
297
179
6
185
88
2
90
21
7
28
535
65
600
3.88
0.38
4.26
125
25
150
160
6
166
60
3
63
12
1
13
357
35
392
Female | Male Female | Male Female | Male Female | Male Female | Male Female | Male
Percentage of total at end of year (%)
Total
Employee Aeg Distribution
Management
Employee
Less than 30
30–39 years
40–49 years
50 and above
82
5%
39%
13%
32%
28%
63%
20%
30–39 years34 women / 43 men
30–39 years1,981 women / 1,004 men
Under 30700 women / 296 men
40–49 years244 women / 286 men
40–49 years
1,072 women /1,014 men
50 and above591 women / 443 men
50 and above738 women / 764 men
Separation rate
New hire rate in the last 3 years Separation rate over the past 3 years
Number of Atypical Employees during the Year
Female Male Female Male
4.643.54
2013
2015
Female
Male
Total
Total
Cleaning
45
2
47
491
Administration
143
85
228
Security
7
208
215
Driver
0
1
1
20132014 20142015 2015
6.10
4.23
6.51
4.85
4.26 3.823.81
3.59
2.95
4.39
2015
Taiwan
Overseas
Total
No. of employees at end of
2015
9,210
4.29
0.56
4.85
79
28
107
161
14
175
75
1
76
80
9
89
395
52
447
3.48
0.34
3.82
56
21
77
111
5
116
54
4
58
100
1
101
321
31
352
Female | Male Female | Male Female | Male Female | Male Female | Male Female | Male
Percentage of total at end of year (%)
TotalLess than 30
30–39 years
40–49 years
50 and above
1-3 Diversified employmentThe Group embraces multiculturalism in our recruiting policy every year. Everyone can apply and there are no restrictions based on school, major, age, background or gender. We have also taken a long-term interest in the welfare of minority groups such as the handicapped and indigenous peoples. In 2015 we employed 95 handicapped employees and 5 indigenous employees on the same remuneration and benefits as regular employees. The "National e-Job Network" of Taipei City Employment Services office publishes job openings for handicapped people.Handicapped employees made up of 1.03% of our workforce in 2015 and satisfied the government quota. To support the "Work-Study Program for Youths from Economically Disadvantaged Families" of the National Youth Commission of Executive Yuan, we employed 42 summer part-time workers. We also supported the "University Student Banking Internship" activity organized by the China Youth Corps in 2015 by providing 10 summer internship opportunities for economically disadvantaged youths.
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2To realize the goal of becoming a happiness enterprise, create a positive work environment, maintain the physical and mental well-being of employees as well as build up the loyalty of employees and their dependents, we provide a wide range of employee healthcare plans and benefits. The key benefits and care measures are as listed below:
First Compensation - Diverse benefits
2-1 Compensation optimization
2-2 Employee warrants
2-3 Diverse welfare subsidies
The part-time workers and interns were able to learn about the practical side of finance and improve their future employment prospects.
The cultivation, development and employment of top local talent is one of FFHC's key overseas management philosophies. In 2015, First Bank branches or offices in Southeast Asian countries such as Vietnam, Laos, Cambodia, Burma and Singapore hired 40 new local employees. They will not only help expand our business but also highlight our Group's acceptance of multiculturalism. To identify students with high potential in Southeast Asia, First Bank hosted two "Southeast Asia Elite Financial Camp" events in 2015. Overseas compatriot students in Southeast Asia interested in entering the financial sector were able to use finance visits, workshops and corporate internships to learn more about our business model. We also took part in recruitment events hosted by offices and student associations in Hong Kong and Macau to contact current students or pending graduates interested in the banking industry. These are added to our overseas local recruitment database and provided to overseas unit for consideration.
To fulfill our corporate social responsibility, FFHC actively sponsors domestic sporting events especially the training and development of national table-tennis players. Apart from providing First Bank players and coaches with subsidies, players who demonstrate exceptional preference are also given preference during hiring. In 2015 we employed 2 national-level table-tennis players on a full-time basis so they can concentrate on international competitions and training as well as fulfill their potential.
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Employee dormitoriesand guest houses
Various subsidies
Leave regulations that surpass the legal requirement
Establishment of employeewelfare committee
Consolation payments
1.Employee guest houses in Beitou, Penghu and Hualien 2. Employee dormitories in Taipei City, New Taipei City, Hsinchu, Taichung, Tainan, Kaohsiung and Hengchun
1. Subsidy for continuing education at university2. Subsidy for learning foreign language3. Subsidy for professional exam entrance fees4. Subsidy for birthday celebrations, annual parties and holiday travel5. Subsidy for funerals6. Distribution of gift boxes on the three major holidays
1. 14 days of paid special leave and 30 days of paid sick leave (except for employees on their first year)2. Marriage and bereavement leave all have more days than stipulated by the Labor Standards Act
1. Subsidies for employee self- improvement trips, employee birthdays and souvenirs for retired personnel 2. Subsidy for hospitalization of family members, funeral expenses and death benefits
1. Consolation payment for serious illness or injury2. Consolation payment on the three major holidays for retired employees3. Consolation payment for the family of employees who passed away
2-1 Compensation optimization To fulfill our care of duty to employees, we have defined retirement rules in accordance with the "Labor Standards Act" and "Labor Pension Act". Apart from making mandatory pension contributions we also refer regularly to salary surveys conducted by professional organizations. Our annual salary is currently in the P65 range of the market (P65 means our standard of compensation is superior to 65% of our competitors). By providing employees with competitive remuneration plans and comprehensive benefits packages, we build up employee loyalty and maximize their potential. This translates into shareholder returns and a mutually beneficial outcome for customers, employer and employees.2014 was a bountiful year for the finance industry and the profitability of the First Bank subsidiary exceeded anticipation. To allow
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Happiness Enterprise
2-2 Employee warrants
When a capital increase by NTD23.52 billion in cash was conducted in 2015, 15% of the new stocks were retained and offered to employees of group companies at below-market prices. They were also encouraged to hold company stock on a long-term basis. The offer was welcome by most employees and all options were exercised.
Note: In 2014 there were 7,270 non-managerial employees. In 2015 there were 7,569 non-managerial employees.
employees to share in the success of the company, in 2015 we not only increased the salary adjustment for promotions by 2.3% but also revised the standard of remuneration to give a 3% increase across the board. Total salary increase therefore amounted to 5.37% and was far higher than the market average of 3.9%. This demonstrated our sincerity when it comes to looking after our employees.In 2015 FFHC spending on employee welfare amounted to NTD14,313,356,000.
We follow the principle of fair and reasonable compensation in employee compensation at FFHC and all of our subsidiaries. There is no difference based on gender or other factors. The ratio between the starting salary for men and women is 1: 1 so there is equal pay for equal work. The ratio between the starting salary and the local minimum wage is 1.88: 1; We also take into account remuneration surveys conducted by management consulting firms. The remuneration statistics are analyzed and used as a reference for adjusting the remuneration system and make it more fair, reasonable and competitive.
For employee compensation at overseas units, we introduced the compensation survey results of well-known management consultants as well as local economic data, compensation trend forecasts and information exchanged with local competitors. The pay grade principle was used to gradually adjust the compensation standards of local employees overseas. We are also focusing on global human resources issues to better look after the livelihoods of local employees and compliance with labor laws. On living subsidies and accommodation for expatriate bank personnel, we not only regularly track the local cost of living and rent to adjust the related subsidies, but also regularly send staff overseas to check on local economic conditions and the needs of expatriate personnel. This ensures our employees are properly looked after.
To share the company's success with all employees, employee remuneration, bonuses and dividends are based on business performance in terms of net income before tax,net yield and return on assets. They are also adjusted based on future risks.
Managerial Role
General Role
Cost of benefits for non-managerial employees for the year
Average cost of benefits for non-managerial employees for the year
Female
100%
100%
2014
NTD 8,050,399,916
NTD1,107,345
Male
106%
106%
2015
NTD 9,176,845,449
NTD1,212,425
Growth
14.0%
9.5%
Remuneration, benefits and pensions
Taiwan is the main business location for our company and subsidiaries. To compare the remuneration of male and female employees in Taiwan during 2015, for general employees the ratio between women and men's annual salaries is 1:1.06; for managers the ratio between women and men's annual salaries is also 1:1.06.
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2-3 Diverse welfare subsidiesFFHC offers a comprehensive and wide-ranging benefits scheme in response to Taiwan's aging population and low birth rate. The human resources system not only protects the promotion prospects, performance evaluation and benefits of employees on unpaid leave but also offers different kinds of support and assistance for employees who need child care leave, take care of injured/sick dependents, or seeking local/overseas continuing education. In 2015 a total of 130 people applied for unpaid maternity leave and the return rate reached 86%; the retention rate one year after reinstatement for employees who went on unpaid child care leave was 90%.
Note: The number of actual returning employees in the table below included those returning early
2015 No.of applicants for unpaid child care
Male
Female
Total
15
115
130
11
98
109
13
81
94
4
86
90
3
78
81
118.18%
82.65%
86.24%
75.00%
90.70%
90.00%
2015 No.of returning employees expected
2015 No.of returning employees expected
2015 No.of actual returning employees
2015 No.of actual returning employees
2014 No.of actual returning employees
2014 No.of actual returning employees
2014 Employees return from unpaid child care leave and stayed for at least 1 year
2014 Employees return from unpaid child care leave and stayed for at least 1 year
Reinstatementratio
Retention rate
Results of employee care initiatives in 2015
Sports and recreational activities
Various employee clubs have been set up including sporting clubs such as table tennis, yoga, and marathon, as well as cultural clubs such as family reading, flower arrangement, and photography. Subsidies were also provided for employees in 17 regional areas for the hire of basketball, badminton, softball and table tennis venues. Annual mountain climbing activity hosted for employees, retired employees and their dependents. Other events included table tennis/badminton competition for employees and dependents, employee basketball shooting competition, the First Bank Cup pool competition, bridge championship,singing competition, charity blood donation drive, beach clean-up and employee day-trips. These helped build up employee loyalty while also enhancing their physical and mental well-being.The various sports and recreational activities achieved an attendance of 24,155 people during the year.In 2015, NTD111,770,000 were spent on employee self-improvement trips. For annual parties subsidies were provided for 9,210 people totaling NTD 20,730,000.
(1)
(2)
(3)
(4)
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100
80
60
40
20
0
87
Health Care
Employeehealthcareand nutritionmanagement
(1)
(2)
(1)
(2)
Each company provides regular medical check-ups better than required by law for employees aged 65 and below. Managers receive two days of official leave each year to undergo medical check-ups at the hospital. Employees stationed overseas below the grade of assistant manager have one day of official leave each year to undergo medical check-ups locally or back in Taiwan. For all other personnel medical check-ups, partner hospitals visit each unit to conduct the health exam every two years. Personnel with anomalies are also notified for further check-ups. Employee dependents may also participate at their own expense. Dependents enjoy the discounted group pricing and the same check-up items. To look after the physical and mental health of employees on night shift we began offering annual health exams in 2015.
FFHC has set up a health section on the Intranet and have full-time nursing personnel on staff. For the top 10 employee health problems and queries, we organize health information and health consultations on an ad hoc basis. A professional clinic and blood pressure monitors available to provide employees with a place for emergency medical treatment and rest. When the (executive) Board meetings are convened a nurse is on-hand to provide blood pressure measurements in order to remind the top management to look after their personal health. In 2015 we hosted several health seminars on topics such as "Health Land Mines - The Three Highs of Chronic Disease", "DIY Stress Relief and Improving Your Immune System", "Who Stole Our Health?" and "General Disease Prevention". These were attended by a total of 473 people. Three "Weight Control Classes" were also held attended by 101 people.
Specialist physicians host clinics at the company every Monday and Wednesday afternoon and employees do not have to queue or make a booking. This allows them to receive professional medical advice even during work, compare and analyze their results from the last two health exams, and check on employee health or alerts. For personnel at high-risk of heart disease, the physicians provide follow-ups and health advice. To reduce personal risks for employees and customers, the Headquarters buildings and business units began installing AED (Automated External Defibrillator) in 2013. By the end of 2015 a total of 25 AEDs have been installed at 24 units and 585 people have been certified in their use.
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S u p p o r t a n d C o u n s e l i n g f o r Seriously Sick or Injured Employees
Co m p re h e n s i ve Insurance Plan
(3)
(4)
(5)
(6)
(1)
(2)
First Bank has established a serious illness or injury support and counseling mechanism. Apart from giving employees NTD 10,000 in consolation payment when they become seriously ill or injured, First Bank has also set up a "Family Association" and gives out the book "From Critically Ill to Running Marathons". In this way, we continue to give employees support while encouraging employees to support each other and share their medical experiences.At the end of 2015, there were a total of 86 seriously ill or injured current employees. Dedicated nursing professionals check up on them at different times over the phone and helped with finding cancer-related information. 152 expressions of support were conducted during 2015.
Apart from labor insurance and national health insurance in accordance with the law, the subsidiary First Bank also assists employees with group insurance for accidents, injury, hospitalization and cancer. The insurance plan is open to employees, their dependents and retired personnel. In 2015 a total of 17,162 were enrolled; First Securities, First-Aviva and First Securities Investment Trust also provide group insurance coverage. A total of 1,354 employees were enrolled at a cost of NTD9,529,000.First Bank personnel stationed overseas are not only covered by local group medical insurance but can also enroll in the International SOS for emergency medical assistance.
The "Abnormal Workload-Triggered Diseases Prevention Plan" and "Human-Factor Hazard Prevention Plan" were drawn up in 2015. Employees at high risk due to "shift work, night-time work and long-work hours" were provided with health advice by physicians.
The "Employee Self-Perceived Musculo-Skeletal Symptoms" survey was conducted at the end of 2015. Corrective action will be monitored to track progress of improvements.The "Maternal Employee Health Protection Plan" was launched in 2015 to provide physical and mental support for pregnant employees. The employee, their direct superior and the unit manager are asked to jointly fill out the "Female Employee Maternal Health Risk Assessment Form" in order to conduct risk assessment of their work, hazard control, risk management and work adjustment. These measures are intended to protect the health of the mother. Telephone calls are also used to express support and provide health education as well as remind them about precautions during pregnancy and after giving birth. They are also informed about childbirth subsidies and related information.Our Company operates an employee cafeteria with professional nutritionists retained to design the menu and cooking process. An emphasis is placed on low-oil and low-salt. We also have arrangements with organic vegetable farmers to supply fresh and healthy cuisine. The main dish plus three side-dishes cost only NTD40. Each dish is also labeled with its calorie count and the total calorie count of each meal is kept between 600 – 800 Kcal so employees can choose what they want based on their personal preferences and physical shape. The scheme has proved very popular with employees. In addition, all of the vegetables used by the cafeteria are supplied by contract farms and every vegetable can be traced to its supplier to ensure the health of employee food. In 2015 the cafeteria was used by an average of 977 people a day.
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P r o m o t i n g balance between work and family for employees
Female employees may apply for paid menstrual leave. In 2015 this was applied for by 119 people and average duration was 10.82 hours.If a pregnant employee feels unwell and is diagnosed by the doctor as requiring rest, they may apply for up to 44 days of sick, special or extended sick leave. This was applied for by 90 people in 2015 and average duration was 16 days.FFHC Headquarters building's breastfeeding room was certified for excellence by the Taipei City Department of Health. Access control ensures a safe, independent and clean environment for employees. In 2015 the breastfeeding was used on average 593 times a month.
If an employee must take care of a family member personally due to vaccination, serious illness or other major events, they may apply for paid family care leave. This is limited to 7 days per year. In 2015 this was applied for by 420 people and average duration was 5.78 hours.To encourage employees to increase the birth rate, we offer our employees a child birth subsidy of $3,600 per child. A total of NTD910,000 was disbursed in 2015.For employees who require childcare services, First Bank has signed an agreement with a well-known national chain to provide all employees throughout Taiwan with discounted daycare rates. Education subsidies are also provided for employees' children. A total of NTD15,950,000 was disbursed in 2015.To increase the amount of time employees spend with their families, First Bank introduced the "Extended Consecutive Leave" scheme and listed this as a priority in internal audits. Employees who take 10 days of leave immediately receive NTD5,000 of holiday assistance. If they take 14 days off then they receive NTD8,600. This is intended to avoid employees neglecting their families due to work. Subsidies totaling NTD25,580,000 were disbursed in 2015.First Bank has defined the "Guidelines for Unpaid Leave to Care for Sick or Injured Employee Dependents" to provide employees with practical support and help them balance work with family. First Bank, First-Aviva and Jin-Chuan Child Safety Foundation have partnered to promote proper child safety knowledge.This included hosting of drawing competitions, child safety family camps, the production and distribution of illustrated child safety books, charity flea markets and other events. All of the events were open to employees and their dependents.The communication of safety knowledge not only strengthened the safety net for children but also gave employees and their families an understanding of the company's charity policies and actions. This in turn enhanced their loyalty and support for the company.
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
As a signatory to the Chinese National Association of Industry and Commerce, Taiwan "Happiness Enterprise", we believe that employees should "balance work and life". To help employees achieve a balance between work and family, we have instituted a family-friendly policy to support our employees and their families.We have made the following progress:
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3
S u p p o r t f o r
retirement
All Group subsidiaries have defined retirement schemes and contributes to pension fundsin
accordance with the "Labor Standards Act" and "Labor Pension Act."Special retirement plans are
also offered when necessary.
To thank retiring employees for their contributions,First Bank presents each with a
commemorative medal, a pure gold bank ID badge, consolation payments on the three major
holidays, and an annual retiree New Year banquet.Retired personnel and their dependentsare
also invited to take part in mountain hikes, sports and recreational activities as well as talent
classes.
(1)
(2)
First Workplace- Friendly environment
3-1 Shorter work hours
3-2 Sexual harassment prevention
3-3 Human rights policy and training
3-4 Promotion of a friendly workplace
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3-1 Shorter work hours
3-2 Sexual harassment prevention
3-3 Human rights policy and training
To combat the prevalence of longer work hours in the banking industry and realize the goal of becoming a happy enterprise, First Bank has introduced corrective measures for overtime management. For units that finish work late for two consecutive hours, the unit manager is not only contacted by phone to promote the philosophy of "efficiency at work, balance in life." We also send out personnel to each branch on a rotating basis to audit the overtime situation. After the implementation of the improvement measures, the average clock-off time had improved by one hour by December compared to July 2015.
To foster a friendly workplace where employees are safe from sexual harassment, we have announced and implemented the "Regulations on sexual harassment prevention, complaints and investigation". Random inspections of posters on sexual harassment prevention and laws were conducted in northern, central and southern Taiwan as well. The company website now contains information on sexual harassment prevention, along with a sexual harassment telephone hotline, fax hotline and e-mail handled by dedicated staff. All group companies have also included sexual harassment prevention and handling procedures into new employee training courses or legal education classes. Manager training classes also regularly reinforce managers
There is no discrimination on the rights enjoyed by employees on the basis of race, gender, employment type, promotion or other situations. All have the right to equal pay for equal work, freedom from sexual harassment, and job security for female employee during pregnancy. We adhere to and ensure that employees enjoy internationally accepted labor rights, and related information is openly available internally. All business sites follow local laws and regulations on human rights. Apart from regular training on sexual harassment prevention and the Personal Information Protection Act, new employee training also explain in full the human rights system on work rules, HR
At all group subsidiaries there is no discrimination employees during recruitment, selection, hiring, assignment, career development, remuneration and benefits, promotions, education & training, and retirement plans on the basis of race, class, language, thought, religious, political affiliation, ancestry, place of birth, gender, sexual preference, age, marital status, appearance, facial features, physical and mental handicap, or union membership. All provide an equal-opportunity workplace. There were no human rights violations or incidents of discrimination in 2015. None of the subsidiaries were also involved in mergers, acquisitions or major investment agreements.
Our HR regulations explicitly ban the hiring of people under the age of 16. We also adhere to the Labor Standards Act in not using force, threats, imprisonment or other illegal methods to force workers to engage in labor.
To maintain human dignity and basic human rights, we have set economic, social and environmental balance as well as sustainability as our targets. Our company and our vendors are all committed to following international recognized labor rights such protecting the legal rights of employees, enforcing a non-discriminatory hiring policy, ban on child labor and eliminating all forms of forced labor. Except in the case of business demand or personnel training, the rotation of personnel between roles and units are based on employee willingness and the five transfer principles defined by the Council of Labor Affairs. We not only give employees a full understanding of company operations but also give preference to employees with high performance and potential. This forms a part of our critical personnel career management and successor cultivation plan; we also encourage employees in southern and central Taiwan to apply for positions in northern Taiwan to learn about core competencies, boost their professional experience, accelerate talent development and improve the quality of our human resources.
understanding and handling of sexual harassment; sexual harassment handling experts are also regularly assigned to attend related workshops and outside classes in order to improve their professional know-how and investigative skills. A "Sexual Harassment Complaints Committee" has been set up as well. It consists of 9 committee members with female committee members in the majority. The committee members serve for 2 years and their terms may be extended. The members of the committee must possess actual experience with handling sexual harassment, as well as a background in law, social sciences and human resources. An investigation must be launched within 7 days of a complaint being received and a report submitted to the Committee for review. The case must be finalized within 2 months. In 2015 our company and subsidiaries received no complaints of sexual harassment.
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3-4 Promotion of a friendly workplaceTo become a model green enterprise we have conducted a series of planned refurbishments. The FFHC Headquarters and IT buildings had previously achieved the highest-possible Diamond class of the "MOI Green Building Mark." As of 2015, a further five buildings (Zhongxiao Road Branch, Guangfu Branch, Wanhua Branch, Gangshan Branch and Luodong Branch) have also been converted into energy-saving, carbon-reducing, water-saving and low-pollution Diamond-class green buildings. To actively support the government's environmental sustainability and greenhouse gas reduction policies, we became the first company in the Taiwanese financial industry to achieve both "ISO 50001 Energy Management System" and "ISO 14064-1 Greenhouse Gas Inventory" certification after passing audits by SGS Taiwan. We are continuing to promote the following work environment optimization and workplace safety protection initiatives:
Smoking is completely banned on the premises of financial institutions under the Tobacco Hazard Prevention and Control Act. All units have enforced the requirement to "prominently display the No Smoking sign at all entrances". In addition, First Bank completed the air quality testing and received the Self-Management Mark for 115 branches. We shall continue to monitor the self-improvement plans of units with higher concentrations of pollution. At the end of 2015, we received the Health Promotion mark from the MOHW Health Promotion Administration's healthy workplace certification program.
In accordance with the Occupational Safety and Health Act, the "Industrial Safety and Health Association of the R.O.C. (ISHA)" is contracted to measure the CO2 concentration and illumination in all offices every 6 months. To prevent "Sick Building Syndrome", every
To promote labor safety and health as well as prevent occupational injuries, First Bank has defined the "Safety and Health Work Rules" to lay out the operational standards and emergency response principles for OSH. These have also been registered with the competent authority. In accordance with the "Regulations for Labor Safety and Health Education and Training", new employees and current employees also undergo safety and health training. This improves employees' awareness of safety and health to forge an accident-free workplace.
(1)Tobacco-free workplace and environmental testing
(2)Implementation of OSH-related activities and training
unit regularly cleans their air-conditioners, water towers, air vents, ventilation shafts, filters, as well as the evaporator or condenser inside their air-conditioners. Drinking water from the headquarters building is submitted to the Taipei City Government Environmental Protection Bureau every 3 months fo r water qua l i t y testing. The test results all complied with regulations.
management rules, employee compensation and benefits. Union personnel are also invited to speak about employee rights relating to the Occupational Safety and Health Act.In 2015 our employees attended human rights protection training (both physical and online) 1,558 for a total of 2,597 hours of human rights-related training. There were no violations of human rights of indigenous rights at any company in 2015. In addition, our company has also communicated our the content and spirit of our human rights policy to the security company. This is so they can incorporate and understand our human rights policy when organizing preliminary and in-service training on human rights. The proportion of security personnel who have completed training is 100% and on average, we organize 12 training sessions every year each lasting 0.5 hours.
In accordance with the "Safety Maintenance Enforcement Rules" issued by the competent authority and the internal "Enforcement Rules fop Employee Self-Defense Organization", each First Bank business unit is required to conduct an employee self-defense organization drill once every 6 months. These are divided into a demonstration and a self-rehearsal. A total of 414 self-defense organization rehearsals were conducted in 2015. 22 business units were chosen by region to conduct the demonstration drill so that other units can send representatives to learn from their example and conduct assessments. After the demonstration drill, each business unit then selects a date and time within one month for conducting a drill. They may also perform the drill in their assigned month according to the annual plan. At the end of the year, the top 6 designated demonstration units with the best ratings are singled out for rewards.
(3) Safety Protection
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The FFHC Headquarters building has a defense corps and emergency SOP in place. "ISO 14001 Environment Management System" certification was also achieved in 2015. A vice president serves as the corps commander while the heads of the Human Resource Division and General Administration serve as deputy commanders. There is also one chief director and one director. They oversee the Control Center (1 control officer, 8 controllers) and five teams, these being the Firefighting Team, Engineering Team, Defense Team, Supply Team and Medical Team. Each team has a team captain, a deputy captain and several team members (assigned as necessary). In the event of an emergency, they can take the necessary
Chain of Command for the First Bank Headquarters Defense Corps
Commander, Deputy Commander
Control Center Firefighting team
Engineering team
Defense team
Supply team Medical team
Executive Director, Director
Management of all civil defense corps
affairs
Alarm triggering, coordination and dispatching of mission teams
Fire prevention and emergency rescue
Emergency repairs to buildings and equipment
Security and support for fire, medical and engineering teams during disaster response
Supply materials, equipment and drinking water as well as provide emergency assistance
Bandaging, transportation, first-aid and evacuation of injured people
Coordination of all civil defense
corps affairs
response measures at any time to protect the safety of employees and property in the FFHC headquarters building. In 2015 two firefighting workshops and drills were conducted as well as one corps-level basic training session.
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First Bank has defined the following response mechanism to prevent natural disasters, accidents and epidemics impacting on bank operations:
Disaster Response Mechanism
Disease Response Mechanism
First Bank Headquarters crisis center
First Bank business units
FFHC Risk Management Division
First Bank managers and business units
President, FFHC
Chairman, FFHC
The "Crisis Response Principles" and "Crisis Response Manual" have been drawn up. If a unit is affected by fire, explosion, hurricane, flooding, earthquake, robbery, bank run, group protest or epidemic, it should immediately notify the crisis center at the main branch and ask for assistance from the head office's business administration unit. To monitor and respond more effectively to a crisis, SMS is used in addition to telephone contact to notify branch managers in the disaster or affected region to report the damage situation by a given deadline. The information is then collated and submitted to the management and relevant units.The crisis response system proved its worth during the 2014 Kaohsiung gas explosion and the Meinong Earthquake in early 2016. The bank was able to swiftly collate and report the situation at all business units in southern Taiwan. Nearby employees were also notified to stay clear, reducing the risk of injury while maintaining normal operations. The event also showed employees the benefits and importance of regular disaster prevention drills.
To maintain business continuity and protect the health of all employees by adopting comprehensive and timely preventive measures during any kind of epidemic, the "Guidelines on Epidemic Response and Prevention Measures" were drawn up and different response strategies developed based on the threat levels published by the Centers for Disease Control, R.O.C. Information relating to the epidemic is also posted on First Bank's internal website (My First Bank) under the Announcements section for employees to view.
Epidemic status Chain of commandTrigger point for our bank'spreventive measures
No human infection by animal flu virus yet
Current situation Human Resource
Division
First confirmed case reported overseas
First confirmed case detected domestically
Patient not a bank employee Patient
Patient is bank employee
Human Resource Division
First Bank Quarantine Response Team
Human Resource Division
Human infection by animal flu virus with epidemic potential
Animal or animal-human hybrid flu virus has resulted in cases of human transmission or small outbreaks, but an effective human-to-human transmission vector capable of community-level epidemics has not yet been established.
Level
1
2
3
(4) Business Continuity Mechanism
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For employees injured at work, the Company gives occupational injury leave as required by law and in accordance with the actual situation. Employees are also assisted in submission of a labor insurance claim.Employees receive all possible assistance in the shortest possible time to minimize harm. In 2015, 32 people applied for leave due to occupational injury.Leave due to occupational injury totaled 876.5 days and the work injury rate was 0.73%. There were no deaths due to occupational injury in 2015. The occupational injury statistics for Taiwan in 2015 are shown in the table below:
Female
Male
Total
Female
Male
Total
22
10
32
590
286.5
876.5
0.54%
0.19%
0.73%
6.46
3.14
9.65
1.21
0.55
1.76
32
16
48
20,070.375
5,542.875
25,613.25
0.88%
0.24%
1.12%
(5) Occupational injury
4
5
6
Epidemic status Chain of commandTrigger point for our bank'spreventive measures
Level
Domestic outbreak of flu virus transmitted human-to-human
Bank has nopatients
Case reported at our bank
First Bank Quarantine Response Team
First Bank Quarantine Response Team
Effective human-to-human transmission of animal or animal-human hybrid flu virus has been proven, leading to a community-level epidemic.
Domestic outbreak of flu virus leading to continued infections
Domestic outbreak of flu virus leading to continued infections
First Bank Quarantine Response Team
First Bank Quarantine Response Team
Effective human-to-human epidemic of animal or animal-human hybrid virus has occurred in two or more non-neighboring countries within the same geographic region
Virus has caused epidemics on at least two continents
Number of people on occupational injury leave
Days ofoccupational injury leave
Occupationalinjury rate
Percentage of days lost
Disabling injury frequency rate (FR)
Disabling injuryseverity rate (SR)
Days absent(not including leave)
Absenteeism rate
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4
a
c
d
b e
Disabling Injury Frequency Rate (FR): Based on the total number of disabling injuries during the period in question. Disabling Injury Frequency Rate is calculated as the total number of disabling injuries for every million work hours (to two decimal places). The formula is as follows:
Disabling Injury Severity Rate (SR): Based on the total number of days lost due to disabling injuries during the period in question. Disabling Injury Severity Rate is calculated as on the total number of days lost due to disabling injury for every million work hours (to nearest integer). The formula is as follows:
Occupational injury rate :Percentage of days lost
Absenteeism rate
Disab l i ng In j u ry Frequency Rate(FR)
D i sab l i ng In j u ry Severity Rate(SR)
Days of occupational injury leave
D a y s o f l e a v e (Occupational injury + sick leave)
Frequency of disabling injuries(persons)
Total number
of days lost
x 10
x 10
6
6
Number of people on occupational injury leave Work hours Total work days
Total hours worked
Total hours worked
x 200,000=
=
=
=
First Training- Talent Cultivation
4-1 Complete development system
4-2 Global talent development
4-3 Career development
Employee know-how is what keeps the company running. To give all employees the requisite financial knowledge and skills, inspire employees' potential and increase their motivation for self-development, we have designed different training courses and learning paths for personnel in each grade. These effectively boost employees' professional competency, marketing skills and enthusiasm for their work. To enhance the digital skills and professional-know of employees in response to the coming of the digital finance age, we organized financial service system courses on big data analytics, Bank 3.0 digital finance development trends, and financial technology through each business training class; employees were also assigned to attend symposiums held by professional institutions, professional courses and overseas workshops. These covered big data analytics, third-party payment services, online financial development trends, Fintech and digital marketing.
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4-1 Complete development systemNew employees immediately enter our training system upon reporting for work. Comprehensive training plans are available from basic to advanced and advanced professionalthrough to deputy managers and managers. Apart from solid on-the-job training as well as practical experience gained through job rotation, we also organize a variety of professional training, online training, internships, language training, internal certification testing and management training. To acquire new financial knowledge and the latest industry developments, personnel are frequently sent to attend training courses and overseas development programs organized by professional training bodies. To encourage employees to continue enriching their skills, we offer subsidies for continuing education in employees' spare time. Enhancing employee skills allow them to grow and transform with the Company.
Help new employees quickly familiarize themselves with the corporate organizational structure and culture
Mentoring scheme
Enhance employees' knowledge and skills of basic operationsIntroduce important regulations, processes, internal controls and sales techniques for each task
Enhance employees' advanced specialized skillsIndustry analysis, case discussion, sharing of experience by top marketers
Go directly to the relevant unit and follow a senior internal instructor around to learn and observe the workflow and key points of each business process
Basic training Advanced training Internship
Covers corporate knowledge, basic operational skills, financial law education, team-building activities, safety and health course
Proxy scheme Job rotation
New employeetraining
On-the-job trainin
Specializedtraining
Enhance the management skills of managersManagement issues such as better communication, motivating subordinates, building team rapport and leadership
Strengthen the foreign language skills and promote a language-learning atmosphere for employeesProvide subsidies to employees attending foreign language courses at language centersSet up English courses on online e-learning platformOpen foreign language courses for Vietnamese, Cambodian and Burmese
Send to external financial learning institutions to learn about business-related competency
Management training Language training External training
Other training
98
To enhance the digital learning effectiveness of employees, FFHC's "First e-Academy" online learning system offers 307 digital courses that can host up to 400 online students at any time. Software and hardware upgrades mean employees now have a more stable and convenient user environment. English online learning courses are planned to create a self-motivated and cooperative learning atmosphere. This will not only build a comprehensive learning database but will also lead to great savings in time and energy spent by employees on travel. In 2015, managers attended real-world training 12,736 times, or an average of 33.73 hours of training per person; online training courses were attended 11,716 times with an average of 35.37 hours of training per person. Non-management personnel attended real-world training 35,890 times, or an average of 24.03 hours of training per person; online training courses were attended 49,633 times with an average of 31.85 hours of training per person. Total real-world and online training hours amounted to an average of 58 hours per person. Total employee training expenses amounted to NTD 60.60 million for an average of NTD 6,580 per person.
4-2 Global talent developmentWe believe that the cultivation of people with great potential is an essential part of corporate development. These individuals possess the core skills and values that are needed to cope with industry competition. Apart from recruiting outside talent, we also use performance evaluation matrix to identify employees with high performance or potential then tailor "Individual Development Plans" (IDP) to their professional background, language skills, and competency analysis. Key training programs include:
Training program
MA training program
Overseas management personnel program
Sales personnel for China program
Accelerated personnel development program
Training subject
Preparation of core personnel (MA)
Overseas branch management personnel training program
Sales personnel for China training program
High performance, high potential personnel
Female
Male
Total
Female
Male
Total
7,416
5,320
12,736
6,399
5,317
11,716
Total number of people
Total number of people
2015 statistics on employee attendance in real-world training and total training hours
2015 statistics on employee attendance in online training and total training hours
Total hours
Total hours
Average hours per person
Average hours per person
31,671
23,686
55,357
33,178
24,858
58,036
36.44
30.68
33.73
38.18
32.20
35.37
20,489
15,401
35,890
29,045
20,588
49,633
111,313
70,600
181,913
144,130
96,952
241,082
24.79
22.94
24.03
32.09
31.50
31.85
Regulatory
Regulatory
Regulatory
Regulatory
Regulatory
Regulatory
Non-managerialrole
Non-managerialrole
Non-managerialrole
Non-managerialrole
Non-managerialrole
Non-managerialrole
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5
4-3 Career development
5-1 Labor agreement
We provide employees with career development road maps and counseling Apart from providing a fair and reasonable evaluation system, we also use two annual evaluations as a way for managers to communicate performance targets and provide employees with the necessary assistance at appropriate times. This builds up employee consensus on individual targets set by the organization. At the end of the year, the routine evaluations are used to summarize the performance of all employees during the year. Apart from defining a fair and reasonable evaluation system with clear avenues of promotion, an incentive scheme is also used to encourage employees to focus on performance. The selection, evaluation, training and promotion of future cadre and overseas management personnel are held at regular intervals. Employee attributes, experience and specialties are compiled into a database then analyzed to provide a reference for planning the employee's career development. We also encourage employees to attend external courses in their spare time. Subsidies are provided based on their grade and the course. In 2015 there were 1,056 applicants and total subsidies amounted to NTD 5,080,000. Employees studying finance-related graduate or higher degrees in Taiwan and overseas may also apply for up to 3 years of unpaid leave. Six applications were approved in 2015.
Due to an anticipated wave of retirements and to accelerate the cultivation of the management cadre, in 2015 First Bank partnered for the first time with external consultants to introduce the "Senior Assistant Manager Career Development Program." Online Life Orientation Assessment, the Career Personality Aptitude System and 180-degree Management Competency Feedback and other tests are used to help assistant managers understand their own capabilities; outstanding branch managers also serve as the "internal coach" for program trainees to pass on their management experience, encourage them to exploit their strengths, make up for weaknesses in their competencies and strive to become high-performance managers.
The Employer-Employee Conference at the First Bank subsidiary consists of an equal number of labor and management representatives. The conference is held every month to discuss employer-employee issues such as improvements to working conditions and benefits.
All effort is made to find a mutually beneficial outcome in order to enhance employer-employee relations and cooperation.
In 2015, the labor dispute over full-time attendance by the
First Labor - Looking after employees
5-1 Labor agreement
5-2 Protection of employee rights
100
Meeting name
Employer-Employee Meeting
Occupational Safety and Health Committee
2015 Statistics on Employer-Employee Meetings and the Occupational Safety and Health Committee
No. of meetings
12
4
Proposals
36
14
To promote employer-employee harmony as well as support business development and employee welfare, First Bank signed the 3rd collective bargaining agreement with the First Bank Union on August 27, 2015. Employee attendance and breast-feeding time regulations were updated to reflect amendments to the Gender Equality in Employment Act. Employees are now entitled to maternity leave and breast-feeding breaks that exceed legal requirements. The proposal was acknowledged by Taipei City Lao-Zhi Letter No. 10437179500 from the Taipei City Bureau of Labor Affairs on September 9, 2015, and all employees notified in writing. Around 82.79% of First Bank employees are covered by the collective bargaining agreement through their union membership.
director-general of the union went through arbitration and issuing of court judgment over inappropriate labor action. A settlement was subsequently reached on June 15, 2015.
To prevent occupational injuries as well as protect the safety and health of employees, an "Occupational Safety and Health Committee" (OSH Committee) in accordance with the "Occupational Safety and Health Act", "Enforcement Rules of the Occupational Safety and Health Act", and the "Management Guidelines for Occupational Safety and Health". The OSH Committee has 7 members with 3, or 43%, being appointed by the Union.The OSH Committee takes a keen interest in various employee health and work environment-related issues. It has proposed many recommendations on safety and health, including: Protection of public safety in the offices, employee health checkup and follow-up management, as well as supervision of the safety and health management plan. These all helped to improve the execution of occupational safety and health management at First Bank.
5-2 Protection of employee rightsTo protect employee rights, important work changes must be notified as soon as possible. Our work rules and HR management regulations explicitly state in accordance with the Labor Standards Act that the establishment of new business units or the re-assignment of personnel due to business requirements must be notified in writing one week in advance. Employment may be terminated in the event of business shut down, transfer of ownership, losses, reduced business, change in nature of business or where the employee is clearly unfit for their job. Advance notice must be given in accordance with the following rules:1. 10 days' notice for employees with more than 3 months and less than 1 year of continuous service.2. 20 days' notice for employees with 1 – 3 years of continuous service.3. 30 days for employees who have continuously served for three years or more.
For overseas assignments, employees must first be assigned to the relevant domestic units for training and given reasonable time to learn about the regulations, culture and lifestyle of the destination country. This will shorten the amount of preparation time, simplify handover and reduce operating risks.
FFHC provides multiple channels for employee communications and whistle blowing. A positive interactive relationship is maintained and whistle blowers are protected against improper treatment. Apart from personal meetings between managers and employees, the employee mailbox and complaints hotline, video conferencing, the internal website, the bi-weekly publication and monthly publication all enable employees to keep track of company developments. The employee communication and whistle blower channels at each company are as follow:
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The Audit Division sets up whistle blower hotline, fax and e-mail in accordance with the Guidelines for Handling of Whistleblower Casesand processes received complaints.
(1) Regular proposals and themed competitions are used to encourage employee to make suggestions on business improvements. In 2015 a total of 142 employee recommendations were proposed on improvements to quality of service, operations, system performance and existing operations. All were passed to the relevant units for study and implementation, with 57 being ultimately adopted. (2) Whistle blower hotline, fax and dedicated e-mail set up. All complaints are handled in strict confidence. All whistle blower channels are currently operating normally.(3) Established the "Employee Care Hotline." In 2015 a total of 10 requests that needed assistance were received. These were mostly work-related and once a call was received, a written record is compiled Management personnel was then asked to communicate with the applicant. All 10 cases were successfully resolved.(4) Set up internal online forum and employee feedback channels through the HR system. These covered business recommendations, sharing of club activities, insights from work, licensing experience, and customer feedback. Employees can use these channels to submit business recommendations or personal opinions. These are processed by a dedicated contact window in order quickly respond to employee suggestions and refine business procedures.
A "President's Mailbox" was set up on the internal website encouraging employees to make suggestions.
(1) Set up the "Ideas Mailbox" with employees encouraged to submit their advice.(2) Included "Employee Suggestions" in employees' annual performance evaluation to encourage communication.
(1) Established "Employer-Employee Meeting", "Regulations for Establishing Measures of Prevention, Correction, Complaint and Punishment of Workplace Sexual Harassment", "Employee Suggestion Box" and "Whistle Blower Hotline" to help employees deal with problems.(2) Organized employee commitment survey, office environment (hardware facilities) and quality of service (software services) survey, and listened to employees' opinions on the work environment.(3) Set up a variety of public forums on topics such as "CEO Weekly Report", "Good Articles", "Environmental Protection", "Arts & Culture", and "Club" on the internal website to promote communication and sharing.
Suggestions from employees in each department are tabled for discussion and communication during monthly meetings.
First Financial Holding
First Bank
First Securities
First SecuritiesInvestment Trust
First-Aviva
First Financial Assets Management
Company name Communication channels
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The "Treasured Life Retirement Trust" service
helped 61 senior citizens and 9 handicapped people
place their funds in trust with First Bank. The funds
are used exclusively for their lifestyle, medical and
retirement needs.
Hosted seminars on retirement and foster care
trusts at the Hiten Mental Hospital in Yilan, the Ren-
ai Branch of Taipei City Hospital and Ruen-Fu New
Life Apartments to educate social workers at the
hospitals and the residents of military dependent
villages about trusts.
Helped the victims and families of the Formosa
Fun Coast Water Park Dust Explosion in their most
difficult moment by reducing/waiving interest and
deferring payments on home and student loans.
Provided low-interest loans to victims of Typhoon
Soudelor to help with post-disaster reconstruction.
Senior care for the twilight years
Emergency relief for customers
Social Harmony
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Hosted the Welcome the Dawn to Win First
Place event at Fulong, which has attracted more than
40,000 people over 7 successive years.
Hosted 2 health workshops as well as charity clinics
and health carnivals at Jibei Village in Penghu, and Namasia
Township in Kaohsiung. A charity clinic and health carnival
was also held in the Pursat Province of Cambodia.
Well-known creative artists were invited each
month to host art exhibitions at the Headquarters
building. Large evening concerts were also held
in northern, central and southern Taiwan with
customers, volunteers and minority groups invited to
join in listening to the musical feast.
In 2015 sponsorships amounting to NT$14,905,000
were provided for sports such as table tennis and tennis.
The national table tennis champion Heng-Wei Yang
became the World Junior Table Tennis No.1 and national
singles champion. Another two national champions Chun-
Yu Tsai and Chi-Chien Lai also won the singles and doubles
gold medals at the Malta Junior Table Tennis Open.
A total of 78 volunteer events were held in 2015.
These involved 3,006 volunteers and benefited 6,774
people, an increase of 16 sessions, 140 volunteers and 218
beneficiaries compared to 2014.
Encouraged employees to participate in green
volunteer events by helping disadvantaged groups
clean-up the environment, taking part in beach
and mountain clean-ups, helping new small organic
farmers who are short on manpower and money,
supporting wetland rehabilitation and ecological
education promotion initiatives.
A total of 44 environmental protection volunteer
events were held in 2015, attracting 1,103 volunteers and
benefiting 2,449 people.
Enhancing the group's image by injecting hope and vitality
into remote rural communities
Supporting the community through arts and culture, sports and musical events
Green volunteers for the land
1
106
First Service - The customer comes first 1-1 Innovative service
1-2 Customer satisfaction survey
1-3 Smooth channels for customer communication
1-4 Customer care events
1-5 Preventing financial fraud
1-6 Emergency relief for customers
1-1 Innovative service
In April 2015, account management was improved in April to allow customers to close their accounts online. For customers
making NTD transfers and remittances by fax, from November onwards those that agree to use telephone voice recordings
to confirm their faxed instructions with First Bank are no longer required to provide the original of their faxed instructions.
A new "Voucher Printing" function was added for terminal transactions in December. This eliminates the need for customers
to fill out a deposit slip when making deposits with a passbook account.
FFHC is continuing to innovate and improve our quality of service in response to intense market competition.The Digital
Finance Environment 3.0 project aims to build a smart, high-tech digital bank that offers a range of digital equipment.First
Bank is also the first bank in Taiwan to introduce the Virtual Teller Machine (VTM), which completely changes the traditional
over-the-counter service model.Our strength in physical channels can then be used to take advantage of the opportunities
offered by virtual channels. Such an integration of virtual and physical channels provides customers with a diversified digital
finance service.
1.1 Optimization and integration of business processes
1.2 Accelerated virtual-physical channel transformation and management of digital marketing experience
FFHC has embraced a strategy of "Integrated Transformation and e-Partnership" in response to the changing international
environment, the domestic push towards digital finance and the emergence of Fintech. "International, inter-department and
inter-business integration" and "accelerated virtual-physical channel transformation" have been defined as the two main
business approaches for converting "Change" in the external environment into innovative services and growth opportunities.
This will provide customers with an "all-channel" service experience and fulfill the strategy of "e-Partnership." We shall
therefore continue to uphold the business philosophy of "Customer Service Comes First" in service quality by making good
use of local resources, embracing localized management and taking advantage of digital transformation opportunities in
order to create value together with our customers.
The "Digital Banking Experience Area" was introduced in First Bank branches to expand
the range of digital and mobile transaction services, realize streamlined, digital and
paperless over-the-counter services, and launch a new digital finance environment.
The form auto-filling and no-form services provided by the digital writing table helps
customers save waiting time for over-the-counter services; iPads and high-tech
products are used to attract customers' attention in order to increase the proportion of
customers who use digital services and speed up the rate of digitization.
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1-2 Customer satisfaction survey
Each group company's satisfaction survey
Our customers' rating and satisfaction with FFHC products and services is very important to us. We conduct customer
satisfaction surveys every year through telephone surveys, e-mail questionnaires, web pages, customer service or external
market survey firms. Improvements are then proposed based on customer opinions and suggestions from the surveys.
In 2015, First Bank's external "Customer Satisfaction Survey" used e-mail to collect customers' satisfaction ratings on the
business units they dealt with. The surveys covered overall service as well as personnel handling deposits, remittances,
financial planning, foreign currency and loan transactions. Respondents were asked to rate the staff on their attitude,
accuracy, processing time, professionalism and waiting time. First Securities used investment seminars and customers to
conduct written surveys. FSITC conducted telephone surveys to gage customer satisfaction. First-Aviva commissioned
market survey firms to conduct the annual satisfaction survey. All customer feedback wasforwarded to the relevant units in
order to study future improvements. Alternatively, education and training was strengthened to increase employee familiarity
with business processes and improve their efficiency. First Bank for example upgraded its computers and streamlined the
transaction process to allow customers to use the corporate website or "e-Action" mobile phone app to connect to the
"e-Writing Table." Over-the-counter transactions can then be sped up by filling out forms in advance or queuing online. To
avoid keeping customers waiting during the lunch break, a roster was set up to let employees go to lunch early.
Satisfaction survey items
First Bank(Operation Planning & Admin. Division)
First Bank(Credit Card Division)
First Securities First Securities Investment Trust
First-Aviva
Overall service, how correctly business was handled, professional performance, waiting times, etc.
Telephone etiquette, planning of marketing activities, problem resolution and attitude
Seminar setup, overall service and electronic trading system
Investment IT services
Sales personnel's attitude and familiarity with products
The "Digital Banking Service Area" provides a wide variety of digital equipment and functions. We introduced the first
VTM which is based on the self-service kiosk. Remote customer service representatives assist customers with filling out
forms, make a reservation to open an account, or apply for credit cards and personal loans. It can also provide the latest
financial products. The integration of transactions, services and sales offer time-poor modern workers with quick and
convenient financial services. First Bank plans to introduce even more innovative digital equipment and reception robots
in the future to enhance the value of physical branches through a digital finance environment that offers innovative
products and services.
(2)
2015 Performance
89.92% 83.3% 85% 94% 81%
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108
Improvement plans for areas requiring improvement
First Bank(Operation Planning & Admin. Division)
First Bank(Credit Card Division)
First Securities
First Securities Investment Trust
First-Aviva
1. Employees trained to pick up the phone within three rings and on the proper introduction when
picking up calls.
2. Upgraded computers and streamlined the transaction process to allow customers to use the
corporate website or "e-Action" mobile phone app to connect to the "e-Writing Table." Over-the-
counter transactions can then be sped up by filling out forms in advance or queuing online. These
provide customers with a whole new experience.
3. Arranged for employees to go to lunch early to avoid keeping customers waiting during lunch.
Backup servers added to improve the stability of the trading system in response to the growing
number of mobile system users. Sub-brokerage trading functions for key international share
markets such as the U.S., Shanghai and Hong Kong were also added to the First Securities' online,
PC and mobile trading systems.
1. Provided immediate analysis of important events in the financial market by e-mail.
2. Provided monthly updates on investment trends by e-mail.
3. Hosted quarterly seminars to provide an in-depth look at the latest investment trends.
1. Drew up policy-holder reward programs and booked cinemas for reward events.
2. Send SMS updates to customers at key points in business processes for their trust and peace of
mind.
3. Assignment of dedicated service representatives to the claims process.
First Bank has partnered with the Street x Taipei Food app to add 50% off discounts to nearly 1,000
restaurants. First Bank card-holders who upgrade to Street x Taipei Food VIPs by swiping their
cards also receive 5 vouchers, creating a digital lifestyle O2O and sharing economy platform.
1-3 Smooth channels for customer communication
Most satisfactory areas
Areas requiring improvement
First Bank(Operation Planning & Admin. Division)
First Bank
(Credit Card
Division)
First Securities First Securities
Investment Trust
First-Aviva
Correct handling by loan personnel
1.Call pick-up time2.Call introduction
Ease of preparing documentation for card applications
Number of restaurants offering promotions
Attitude of service staff and seminar content
Satisfaction with the electronic trading system
Satisfaction with investment/financial planning information and events
Investment information channels and frequency should be increased
Sales personnel's attitude
Contact with policy-holders
To actively understand and respond to customer requirements in a timely manner as well as maintain sound customer
relations, FFHC does not just help customers resolve their problems through its local offices and staff during business
hours. The "Stakeholder Communications" section of the FFHC website provides the online customer support, 0800 toll-
free customer service hotline, business inquiry hotline and complaints mailbox for FFHC and its subsidiaries as well. FFHC
subsidiary First Bank operates a 24-hour customer service hotline for listening to customers' opinions and suggestions,
account inquiries, updating customer details, banking business inquiries and problem reports. The hotline provides
customers with real-time service on demand. Business dispute handling procedures have also been put into place. Once a
Customer calls the company
Customer Service CenterCustomer service personnel
handle the customer’s issue until the issue is closed
Details of customer feedback are compiled monthly and reported to managers
Customer service manager takes over the case
until the issue is closed
Process complete
Process complete
NO
NO
The customer feedback ticket is transferred to the
responsible department, which closes the issue within three
working days
109
First Bank customer complaint handling process
customer complaint has been received the administrative and related units work actively together towards its resolution.
Current progress is also recorded for tracking purposes; each business unit has dedicated personnel assigned to handling
customer complaints. They are responsible for assuring the customer and processing reports within the given deadline.
The statistics showed that in 2015 FFHC subsidiaries received 517 customer complaints, down 707 on 2014. The reduction
in customer complaints was mainly due to the Credit Card Division's push to deliver proactive, high-quality service. FFHC
also requires all customer feedback to be responded to within three working days. Internal processes and employee training
were also strengthened based on some of the customer feedback.
1-4 Customer care events
There has been increasing public interest in issues such as food safety, health, stress reduction and financial planning in
recent times. Businesses must fulfill their social responsibility by acting as an agent for information delivery. In 2015, FFHC
subsidiaries conducted a series of financial planning seminars in urban and rural areas as part of our customer relations
management. Seminars with seasonal themes were also held so that customers and employees could be productive
workers and also relax and lead a healthy lifestyle. We also reviewed customer assets and provided timely suggestions on
adjustments. Through solid, practical and attentive service, we strove to protect our customers' assets and create a win-win
outcome for both sides. At the same time, we held seminars in industrial parks around Taiwan to provide small and medium
enterprises with the latest finance information, investment and financial advice, as well as promote the Equator Principles
and green energy loans. Up to 980 seminars (including 8 video conferences) of all types were held during 2015. More than
29,554 people attended these events to learn first-hand about financial, investment and lifestyle information.
For customers who are willing to repay their loans but whose short-term income is uncertain, First Bank not only cooperates
with government policy to reduce repayment pressure but also various negotiation methods to help them through this
difficult time. In 2015, First Bank approved 689 accounts totaling NT$ 54.06 million for negotiation to help the customer
repay their debt as soon as possible.
First Financial Holding CSR Report
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Number of
participating
customers
110
In 2015, FFHC organized customer care sessions that were attended by up to people. A summary is provided below:
980 29,554
VIP Financial Planning Country Road Show, Customer Road Show
Financial Planning Clinic Seminar
Financial PlanningWorkshop for Customers
Mother's Day/Father's Day Workshop
Corporate Gold Workshop
Total of
Total of
Total of
Total of
sessions
between
sessions
between
sessions
between
sessions
between
Total of sessions for
Total of sessions for
Taipei, Taoyuan, Hsinchu,
Taichung, Chiayi, Tainan and
Kaohsiung
Held in northern,
central and
southern Taiwan.
First Bank
business units
Taipei,
Taichung,
Kaohsiung
Minsyong Industrial Park, Tai
Yuen Hi-Tech Industrial Park,
Dafa Industrial Park, Liouying
Technology Industrial Park, Neihu
Technology Park, Anping Industrial
Park, Gangshan Benzhou
Industrial Park, Nangang Industrial
Park, Taiyi Industrial Park
Promote financial literary and helping customers with their
financial planning through introducing financial products,
explanation of key topics and promotional offers.
One-on-one review of customers' current asset mix to provide investment advice
and helping them adjust their investment portfolio when appropriate.
Educate customers on financial planning and
financial information. Improve financial literacy
among ordinary people.
Combine social welfare with performances by
charities to encourage customers to participate and
contribute to social welfare.
Free traveling financial workshops for SMEs were held at each industrial
park providing the latest financial information and investment advice
such as analysis of overall economic trends, introduction of financial
products, explanation of key topics, and promotional offers.
2,101
1,073
20,886 826
1,100
2015/1/1~12/31
2015/1/1~12/31
2015/1/1~12/31
2015/1/1~12/31
Mother's Day
Father's Day
18
66
850
10
3
3
Number of
participating
customers
Number of
participating
customers
Number of
participating
customers
Number of
participating
customers
Investment and Financial Planning Workshop
Expert Wealth ManagementClass Online
Taipei, Hsinchu,
Taichung,
Kaohsiung
First Securities
Investment Trust
website
First Securities Investment Trust invited financial
experts and art celebrities to share their financial
planning and lifestyle information in order to
enhance the financial literacy and knowledge of
customers.
Financial experts invited to provide the latest
financial information such as financial products,
explanation of key topics, and promotional offers.
1,890 1,028
2015/1/1~12/31
2015/1/1~12/31
The seminars attracted
views
111
Financial Literary Seminar for Rural and Regional Communities
Total of
Total of
Total of
sessions
between
sessions
between
sessions
between
Taipei, New Taipei
C i t y , Ta o y u a n ,
Taichung, Miaoli,
and Penghu
First Securities hosted financial literacy awareness
events for rural and local communities. Speakers and
staff were provided to promote financial literacy and
combat fraud.
650
2015/1/1~12/31
13
08
09
Number of
participating
customers
Number of
participating
customers
1-5 Preventing financial fraud
Fraud is a constant problem. To protect customer assets, First Bank has issued
the "Over-the-Counter Checklist" and "Fraud Prevention and Large Withdrawal
Precautions for First Bank Business Units." For suspicious situations or whether
the customer shows signs of being defrauded, First Bank contacts the local
police when appropriate to investigate and provide cash escorts. The partnership
with the police helps to protect customers against fraud. Routine education and
training is also used to raise awareness on fraud prevention. In 2015 for example, a
retired bank employee received a call from fraudsters claiming that due to alleged
involvement in drug dealings, he must now transfer his assets to an account at the
An-nan branch of First Bank for monitoring. The retired bank employee was taken
in and transferred NT$4 million as directed. The fraudsters then sent someone to
withdraw the money but bank employee Jiang suspected something was wrong.
In addition to keeping the person making the withdrawal on hold, she also notified
her supervisor, the local police, and helped the police arrest the suspect. The
NT$4 million was also recovered in time. The National Police Agency and the 3rd
Precinct of Tainan City Police Department both sent letters of appreciation to
the First Bank for doing its duty and preventing the fraud case. In 2015 a total of
11 fraud attempts were successfully prevented and NT$20.18 million in fraud
proceeds blocked.
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2
First Care - Love for Taiwan
112
FFHC has been organizing the volunteer service corps for 5 years.In keeping with the "Service Comes First" spirit and
leveraging the advantage offered by more than 200 sites throughout Taiwan,FFHC has embraced the concept of "local care"
to deliver warmth and compassion to every township.Apart from actively participating in the financial awareness initiatives
of government agencies andcharity events, FFHC has also drawn upon the resources of the Group's subsidiaries and the
First Bank Educational Foundationto expand the scope of services so that more people can appreciate how "FFHC is there
for you." In 2015 the Group organized a total of 205 charity events.The event funding and donations amounted to NT$56.65
million. For 2016, we hope that our outreach program following the three key themes of"First Care", "First Dream" and "First
Culture" will fill society with the power of loveand build bridges with the general public.
2013-2015 Volunteer participation and number of beneficiaries
2015 FFHC CHARITY EVENTS AND DONATIONS
27%
46%
27%
First Culture
First Care
First Dream
1-6 Emergency relief for customers
First Bank helped the victims and families of the Formosa Fun Coast Water Park Dust Explosion in their most difficult
moment through reduced/waived interest and deferred payments on home and study loans. Victims of Typhoon Soudelor
also received low-interest loans to help them with post-disaster reconstruction. At the same time, First-Aviva also provided
immediate compensation and discounts on premiums or loan interest when members of the general public experience a
serious incident. Emergency pay-outs were also available on a case-by-case basis. An example of this was the 2015 light
aircraft crash at Dapeng Bay in Pingtung County. First-Aviva treated the incident as a "serious special case" and paid out the
insurance policy right away to look after the policy-holder's family. The beneficiaries also received assistance with completing
the subsequent claims process.
2-1 Volunteer service
2-2 Protecting minorities
2-3 Promotion of child safety education
2-4 Senior care
2-5 Friendly land
2-6 Charity donations
2-7 Partnership with small farmers
2013 4,0731,701
2014 6,5562,866
2015 6,7743,006
Participants Beneficiaries
關懷活動
113
2-1 Volunteer service
Donations of subsidies and funding
Beach clean-up
Group activities, fun
challenges, drawing,
storytelling competition,
table tennis training,
reading companions
Donation of materials
(refurbished computers,
electrical appliances,
domestic goods, nutrition
supplements, stationery,
sports equipment, music
teaching materials)
Campus cleaning
and re-painting
Making of cakes,
pineapple cakes
and handicrafts
Financial literacy
awareness
School vegetable gardens,
farming, and harvesting of
fruits and vegetables
FFHC has offices throughout all major cities and townships throughout Taiwan after more than a century of development.
We are keenly aware of the tremendous gulf faced by minorities and remote rural areas caused by the urban-rural divide.We
therefore sought to invest our resources in rural areas suffering from aging populations, labor shortages particularly during
the harvest season. The Volunteer Service Corps was therefore formed in 2011 and Taiwan was divided into six regions from
the north to the south - North 1, North 2, Taoyuan-Hsinchu-Miaoli, Taichung-Changhua-Nantou, Yunlin-Chiayi-Tainan and
Kaohsiung-Pingtung.By recruiting volunteers for labor services, environmental clean-ups, companionship for sick children
and senior citizens, beach clean-ups, and farming, we offer employees the opportunity to help minority groups, rural areas,
children with rare diseases, and senior citizens. This in turns energizes society through a positive feedback cycle of love.
Apart from caring for our fellow men, FFHC also actively promotes friendly environments through local communities and
well-known destinations in keeping with the ideals of environmental sustainability. These included Taoyuan County's Yong-
an Fishing Harbor and Chungli Fruit & Vegetable Wholesale Market and the Yanping Historic Street in Siluo, Yunlin County.
Apart from doing our part for the environment, we also encourage tourists and local residents to take part in highlighting the
cultural beauty of Taiwan. In 2015, the First Volunteer Service Corps visited 17 counties and cities throughout Taiwan. The
number of volunteer events grew from the 62 sessions in 2014 to 78 sessions in 2015. Volunteer participation increased
from 2,866 to 3,006 people, the number of beneficiaries grew from 6,556 to 6,774 during the year, and the total number of
service hours reached 12,024 hours. (Between 2011 and 2015 volunteers were dispatched a total of 8,729 times, benefiting
20,552 people and clocking up a total of 34,916 hours of service.) Our charity events in 2015 included:
Charity Events
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First Volunteer Service Hours in Recent Years
hoursCumulative total
Cumulative total
Cumulative total
people
people
34,916
8,729
20,552
Hours
Participants
Beneficiaries
2011 2,140
2012 2,484
2013 6,804
2014 11,460
2015 12,024
2011 535
2012 621
2013 1,701
2014 2,866
2015 3,006
2011 1,148
2012 2,001
2013 4,073
2014 6,556
2015 6,774
115
A total of
A total of
A total of
•Gan Ling Charity Foundation (GLSF)
• Yanping Historic Street, Siluo• DachiaChengchi Charity Association
• Holy Wisdom Training Center for Special Needs
• Chiayi County Zhongpu Private Institutional Care Center• Tsz-Ai Mental Development Center• TFCF North District office• Nantou Education and Nursing Institution
•Community Outreach in Zhongxing and Aofeng, Qingshui District
• Northern Region Senior
Citizens' Home• St. Anne's Home
• Beacon of Faith Home for Youth• Down Syndrome Foundation R.O.C.
• Taiwan Fund for Children and Families• Going Home for Premature Babies
• Hondao Senior Citizen's Welfare Foundation• Yu-Cheng Social Welfare Foundation - Car Wash Center• Yu-Cheng Social Welfare Foundation
- Love Education•Datong Children's Home
•Water Fun for Premature Babies •Institute for the Blind of Taiwan
•Gongbei Temple of New Taipei City
•Poor Orphans Home •Kind Lead School Cultural and
Education Association •Yong-an Children's Home
•Ji-Sing Senior Citizens Foundation •Jinxing Community, Shanlin District
•IPHCCO •Private Buddhist Ching Jou Orphanage •SandimenSaiJia Elementary School •Huei Ming School and Home for Blind Children •Co-Life Home
•Ching Shan Children's Home •Jin Tan Public School, Linyuan District
•Hualien County Family Association•Kids Alive International
2612
Northern Taiwan Taoyuan-Hsinchu
-Miaoli region
•TFCF Yingge Office •Chung Yi Children's Home
•Holy World Children's Home•Harmony Home Association, Taiwan
•Tzu Tai Sheltered Workshop•Care Cardiac Children's Association
• Veterans Service Department• Street Fun for Premature Babies• Mustard Seed Home
• Linkou Organic Farm• Wanli Wetland
• Xiang-Ri Farm • Sporting Fun for Premature Babies
•TFCF Changhua•Shuang Long Elementary
School•Maria Wufeng Caring Home
•Faith-Hope-Love Center for Children and Adults with Disabilities•Enhuei Children and Juvenile
Center•Shuang Long Elementary
School, Nantou
11
14
Yunlin-Chiayi-Tainan Region
Kaohsiung-Pingtung Region
•House of Hope •Rong-Guang Social Welfare
Institution •Kai-Yuan Nursing Home
•Tzu-Hui Children's Home •Chao Hsing Social Welfare Foundation
•Ren-Ai Home Affiliated Children's Home •Changtai Education and Nursing Institute, Sinshih • Show Life Children's Home
• Cao Huang Temple • Shanmei Elementary School, Alishan
• Taingon Children's Home
charity support events were held
in 2015
charity support events were held
in 2015
charity support events were held
in 2015
•Chungli Fruit & Vegetable Wholesale Market•Catholic Hua-Kuang Center for the Development of the Disabled•Yong-an Fishing Harbor beach clean-up•Reindeer Children Home•TFCF Miaoli•Tinfun Home for Individuals with Development Disabilities •SOS Children's Villages
Taiwan
•Green Light Classroom•Holy Family for Special Education•Chiahwei Home for Individuals with Development Disabilities•Renyou Sanatorium•Taoyuan Kind Garden
A total of
A total of
15
Taichung-Changhua-Nantou Region
charity support events were held
in 2015
charity support events were held
in 2015
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2-2 Protecting minorities
To help economically disadvantaged or bereaved children focus on their studiesand to provide them with love and
companionship,the FFHC Volunteer Service Corps used our offices around Taiwan to venture deep into the 368 townships
in 17 counties and cities in search of schools and children's homes to donate mentoring subsidies, teaching equipment and
promote financial literacy in order to expand the learning horizons of disadvantaged children; Minority groups also received
donations of used computers and New Year food subsidies.Volunteers accompanied the meal delivery services or joined in
the performance of traditional art and cultural activities.In 2015 FFHC volunteers visited a total of 78 children's homes in
the spirit of local engagementand love in order to give back to society.
First Securities has continued to work with the
Taiwan Premature Baby support Association on
hydrotherapy, massages, singing and physical
exercises for premature babies to help with their
health and future.
To encourage minorities and patients to stay positive and optimistic, First Bank Educational Foundation regularly hosts the
"Caring & Compassion Series" of small concerts at the National Taiwan University Hospital at 2-month intervals to provide
minority and handicapped groups with a performing venue. Group companies also participate to communicate positive
energy from society to the general public and patients. More than 200 people attend each of these heart-warming sessions.
2.1Children in rural regions
2.2 Premature babies
2.3 Charity concert
FFHC Volunteer Service Corps
The spirit of local engagementand
Love
Back to society78
Children's homes
117
Series 3 Series 4
2015.6.17 2015.8.6
Chunhua and
Menglu Duet
New Taipei City
Autism Service
Association/Kanner
Support Group
"Drumming for Dad"
Series 1
Series 5
Series 2
Series 6
2015.3.3
2015.9.24
2015.4.2
2015.12.16
Visually impaired singer
Yi-Chen Chen,
Ting-Hao Liao and
Yi-Chun Wei
Special Education Class
from Kuang-Ren Junior
High School
Lin-Feng Chang,
Chien-Yu Chou
"Welcoming the New Year with Joyful Singing and Music"
"Mid-Autumn Festival with Disabled Youths"
"Children's Percussion and Dancing for Self-Confidence"
"Celebrating the Dragonboat Festival with Chunhua and Menglu"
"Christmas Well-Wishes through Beautiful Voices"
FSITC continued to cooperate with the Sunshine
Foundation to promote face equality by inviting more than
ten companies to take part in a charity blood drive. The
blood drive is used to promote facial equality and raise
public awareness. Nearly a thousand bags of blood filled
with enthusiasm have been donated over the last three
years.
2.4 Blood drive
Inviting more than
ten companies
Three
years
Nearly a thousand bags of blood
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2-3 Promotion of child safety education
In 2015, the three schools (Ankeng Elementary School, Erchong Elementary School and
Zhongzheng Elementary School) participating in the disadvantaged student adoption
program supported by the First Bank and First Bank Cultural and Education Foundation
as well as Jin Chuan Child Safety Foundation which has a longstanding partnership
with First-Aviva joined forces to promote child safety awareness and enhance child
safety knowledge among parents and children by hosting three children's safety camps.
In addition to teaching children how to protect their own safety, Prof. Lan Hong was
invited to provide a unique analysis on education from a neural science perspective,
while Prof. Kuang-Tsai Hao taught about the magic of illustrated brooks. For the parents
in the audience this was a very educational experience while the children learned about
safety through plays and challenge activities. Around 900 parents and children took
part in the events. At the same time, 44,000 children's safety play books were delivered
to each business unit and given out to over-the-counter customers to help promote
children's safety.
To help children reduce their fear of danger through color
perception, First-Aviva has held a children's safety drawing
competition every year since 2011 and attracted more than
2,000 entries. In 2015 the Internet was used to allow more
people to appreciate the prize-winning artworks by children.
A collection of the winning paintings was also produced and
distributed to customers, and was ultimately viewed and shared
by around 13,000 people.
3.1 Child safety family camp
3.2 Online painting exhibition
First Bank cooperated with the Financial Supervisory Commission by hosting
"School and Community Financial Education" events at 40 elementary and junior
high schools in Taipei, New Taipei, Yilan, Taoyuan, Miaoli, Taichung, Nantou,
Chiayi, Tainan, Kaohsiung and Pingtung as well as offshore islands like Lianjiang
and Penghu. The events are aimed at cultivating financial literacy from an early
age. Around 4,599 people in total took part in the sessions; to promote financial
knowledge and cultivate future financiers, First Securities partnered with
universities such as National Taiwan University, Ming Chuan University and
National Tsing Hua University to host financial planning seminars on campus and
search for future financiers. The seminars attracted more than 200 elite students.
To maximize the use of resources and fulfill our CSR through cross-industry partnerships, First Bank partnered with its
customer Cheng Loong Corp., to turn recycled cardboard into book shelves, tables and chairs. A book donation drive was also
launched to provide the An Zhao Elementary School in Kaohsiung City's Yanchao District and the Chi Ming Elementary School
in Taichung with their own "Paper Library." An Zhao Elementary School in particular was the first paper library in southern
Taiwan. The tables, chairs and shelves made from paper are not just strong and robust. They also play a role in environmental
education on importance of recycling. The partnership between companies allowed each to apply their core competencies. This
not only enhanced the reading environment for remote elementary schools but also let the students experience and understand
the importance of environmental education. More importantly, it serves to inspire their interest in learning and help them
change the future.
3.3 Financiers on campus
3.4 Partnering with corporate customers to build a paper library
TeachingFinancial
knowledge
119
2-4 Senior careTaiwan is now an aging society and senior care is now
attracting greater public interest. The FFHC Group is
promoting retirement trusts to be used exclusively for the
living, medical and retirement needs of senior citizens so
they can live out their twilight years in peace. In addition
to recruiting volunteers to visit seniors on weekends,
the group has also partnered with well-known medical
institutions in Taiwan to offer free clinics in remote rural
areas and in Cambodia to provide disadvantaged seniors
with better medical care. In December 2015, indigenous
children were invited to visit Nantou's Concern with Love
organization to celebrate Christmas with disadvantaged
seniors living alone.
Beneficiaries
people
peoplepeople
people people
people
Beneficiary families
3,071
125
200
2,500
60
150
36
1,000
Northern Region Senior Citizens'
Home: Providing companionship to
senior citizens through environment
clean-ups and magic performances.
Health comes first for everyone:
Charity clinic at Jibei in Penghu in
conjunction with E-Da Hospital
First overseas charity clinic brings
smiles to Cambodia: Cross-industry
charity
Christmas with Love: Love in a shoe box
with companionship from FFHC and
Shuang Long
LOHAS with First Bank: Charity clinic in Taoyuan Township
in conjunction with Kaohsiung Medical University
Ji-Sing Senior Citizens Foundation: Group
recreation activities and senior care.
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The idea of having children to support you in your old age is now gradually becoming obsolete. Senior citizens should plan
in advance and save for their future. The "Treasured Life Retirement Trust" of First Bank allows funds to be entrusted to
trustees and used exclusively for seniors' own lifestyle, medical and retirement needs so they can live out their twilight years
in peace.
First Bank actively promoted the trust business in 2015 by hosting seminars on retirement and foster care trusts at the
Hiten Mental Hospital in Yilan, the Ren-ai Branch of Taipei City Hospital and Ruen-Fu New Life Apartments to educate social
workers at the hospitals and the residents of military dependent villages about trusts. Q&A and consultations were also
conducted after each session.
In keeping with the group strategy and in response to the trend of an aging population, in 2015 First-Aviva also launched the
Long-Term Care Lifelong Insurance. It also continued to work with the bank and government policy to develop retirement
trusts. This will help to resolve an emerging social issue and fulfill our CSR in conjunction with our core competencies.
There has long been a disparity in the distribution of urban and rural medical resources. In 2011 FFHC began partnering
with hospitals to host charity clinics in rural areas to provide medical care and educate people on health. In 2015, FFHC
partnered with one of its customers, the Taieasy Group, in mid-July to send a 50-person charity clinic team carrying more
than 1.2 tons of medicine and supplies to Cambodia. With the help of local and foreign volunteers, the team ventured deep
into the remote rural areas of the Pursat Province to provide local residents with clinical, surgical, dental and physiotherapy
treatments. This was also the first time that the concept of local relations management has been expended to an overseas
market since the founding of the volunteer service corps. In October we partnered with the Kaohsiung Medical University
and E-Da Hospital to host charity clinics in Lavulang in Kaohsiung's Namasia Township and Jibei Village in Penghu. Residents
were offered free blood and urine testing, Chinese medicine clinics, ECG examinations, preventive health care and health
education consultation services. The initiative is designed to raise public awareness on rural medical resources.
Due to the aging population in Taiwan, the First Bank Volunteer Service Corps visited the Northern Region Senior Citizens'
Home and the Ji-Sing Senior Citizens Foundation in Kaohsiung to provide companionship for seniors. First Bank employees
prepared magic performances and group recreation activities to interact more closely with the elders and fulfill our social
engagement policy.
4.1 Retirement trust
4.3 Rural charity clinics for senior care
4.2 Companionship for senior citizens
Blood and urine
testing
Chinese medicine
clinics
ECG examinations health education
consultation services
Preventive
health care
121
Shuang Long Elementary School is a remote school in Nantou
County's Xinyi Township.It is also one of the Bunun Tribe's specialty
schools. On June 2, 2013, an earthquake in Nantou badly damaged
the school buildings.Funding shortages however meant students
were short of classrooms.Upgrading the learning environment
was therefore a matter of great urgency.FFHC began providing
systematic aid to Shuang Long Elementary School in 2015.Apart from
funding improvements to teaching equipment, FFHC also provided
the school choir with a stage for their performances.In the lead-up to
Christmas, students from the school were invited to deliver singing
performances as volunteers.They also had fun with DIY cake-making
and accompanying seniors living alone during the holiday season. The
initiative enriched the souls of both sides.
4.4 Christmas blessings for elders living alone
2-5 Friendly land
FFHC encourages employees to engage in environmental
volunteering. There are three categories with the first
being helping disadvantaged groups with cleaning up the
environment,painting the community and cultivating the
concepts of recycling, environmental protection, energy
conservation and carbon reduction through the clean-up
process; the second is inviting employees and the general
publicto take part in beach and mountain clean-ups in order
to protect the beaches and wilderness together; The third
is working with schools and organizations to plant trees on
campus and greening the environment.The general public
is invited through our employees at more than 200 sites to
join in volunteering for the environment.
"First Fresh" helps new small organic farmers short on
manpower and money."Water and Grass Paradise" focuses
on wetland rehabilitation and ecological education."First
Fresh" attracted more than 200 participants since it
was launched in November, 2015.It promotes organic
environmental educationand helped sell more than 500
catties of organic vegetables. Total of 44 environmental
volunteer events were held in 2015, attracting 1,103
volunteers and benefiting 2,449 people.Employee
participation helped realize Earth-friendly practices.
5.1 Green volunteers
44 1,103 2,449Environmentalvolunteer events PeopleVolunteers
Benefiting
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The FSITC "Deliver Love into the Country" eventEncouraged employees
to donate stationery, clothing, toys, books and accessories suitable for
elementary students.FFHC also donated 10 sets of refurbished computers
as well.The children of the Ark Classroom in Taitung County's Daren and
Dawu Townships greatly appreciated the expression of warmth and love
from society.
5.2 Deliver love into the country
A flea market was held by First-Aviva at the Headquarters building.Building tenants were encouraged to join with the
Jin Chuan Child Safety Foundation in organizing the event.The overwhelming response from employees and other
businessesraised NT$435,000 in donations for the Jin Chuan Child Safety Foundation. This will hopefully provide children
with a safe environment for healthy growth.The flea market also gives items that are not needed for nowa new lease of life.
5.3 Flea market
In the spring of 2014, we (Xingxing, Wendong and Douzi)
formed a joint venture to found the CUG Organic Farm in
Linkou, New Taipei City. Each of us contributed our own
expertise (gardening, architecture & landscaping) to "grow
and sell vegetables" in a way that integrates everything
from production to sales.
Farming however was not as easy as we thought. Instead, it
was filled surprises, shock and sheer terror. After enduring
weed and pest invasions, missing out on the best time for
applying fertilizers and harvesting due to inexperience,
and customer complaints due to poor product quality,
we began to taste the fruits of success. The eventful year
was a valuable experience and we gradually expanded
into farmer's markets, channels, hot pot restaurants
and markets. There were some problems that remained
unsolved. The shortage of agricultural workers was
particularly acute.
In the summer of 2015, representatives from First Bank's
PR Office came to visit us then proposed the "First Fresh"
program to provide agricultural support, assistance with
packaging, and regular purchases of vegetables to boost
production and sales. We immediately asked why they
sought us out despite our poor ratings on hardware
facilities. We felt that First Bank should work with more
developed farms instead. The PR Office however told
us that this was their way of providing farmers with
practical assistance. This was an offer we were more
than happy to accept because the shortage of labor was
a serious problem. After several sessions, what we saw
was mutual assistance, division of labor and efficiency.
All of the work for the day were often completely well
ahead of time. It showed everyone that the First Bank
employees were in it for real and nobody opted out
even if it was 30 or 40 degrees on the day. During the
events, we also noticed that First Bank employees had
no problems with and taking home really ugly sub-
standard vegetables with them.
If CUG is like a cabbage, we are now in the "root
growing" phase. The assistance from First Bank is like
applying fertilizer so we can grow even stronger. Apart
from the helping with the farm work, the exchange of
ideas during the events also expanded our horizons.
In conclusion, we hope that the labor exchange can
continue to thrive in the future and we thank First Bank
for being here for us.
Helping Youths Return Home – CUG Organic Farm
123
2-6 Charity donations
2-7 Partnership with small farmers
The dust explosion at the Formosa Fun Coast on July 14,
2015, has led to the deaths of 12 people and injured 487
people to date. Most of the victims were young people who
suffered burns to their face and body. Recovering from
burns is a very long and difficult road. FFHC immediately
donated NT$10 million towards psychological counseling
services for the dust explosion survivors in order to help
them emerge from the tragedy. FFHC believes that the
finance industry should fulfill its CSR by cultivating future
pillars of society. So in addition to encouraging the young
burn victims to get back on their feet and have the courage
to face the sunlight, we also provided support for the
National Cheng Kung University's student assistance
program and the Financial Service Industry Education
Foundation. This will help students from poor families
who wish to further their education gain equal access to
education and change their lives.
In November 2015 Taiwan experience a cabbage glut
that saddled farmers with rock-bottom prices. FFHC
immediately placed orders directly with farmers through
the "Fruits & Vegetables Marketing Cooperatives" to buy
50 tons (approximately 22,500 heads) of cabbages. This
helped cabbage farmers through the crisis through direct
action. Apart from doing our part to alleviate the glut, it
also provided a way to thank our customers and reward
our employees. Other parts of society soon followed the
example we set.
Charity donation items Amount
2,000,000
10,000,000
2,500,000
Donation to the NCKU Student Assistance Program
Formosa Fun Coast Dust Explosion
Financial Service Industry Education Foundation
Total 14,500,000
Insights from the Wanli Wetland Event
I kept wondering before departure what wetland volunteers were
supposed to do. What could they do anyway?
Ever since that day, I've felt nothing but admiration for the
volunteers and environmental groups who work quietly behind
the scenes to protect Mother Nature. I also learned how fragile
the wetland ecology is, and how destruction is so much easier
than rehabilitation. The Society of Wilderness took us early in the
morning to the Wanli Wetland which has no street number or signs.
The morning focused on introductions while the afternoon was
spent on weeding, trail maintenance, and explaining the ecological
environment. "Participation" itself is a form of "Education."
The "Feedback and Sharing" after the event showed me that I wasn't
the only one to feel the same way. There were also many other
colleagues who hoped that this kind of environmental and ecological
education can be passed on because they learned through direct
participation the importance of protecting the land.
Xiaozhen, bank employee
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3-1 Table tennis training
3-2 First Financial Holding Table Tennis Tournament
FFHC has been supporting and sponsoring sporting activities for more than 20 years.
Recognizing the need for long-term planning and systematic training in sports, we
set up table tennis teams, hosted national competitions and sponsored athletes to
systematically, progressively and continuously strengthen the sport at the grassroots
level and cultivate future stars. In addition, we also hosted national table tennis and
large-scale tennis competitions every year with the public invited to participate. This
encouraged the public to exercise. To support local sports stars on the international
field, we provided sponsorships that allowed them concentrate on the preparations
and make their country proud. In 2015 FFHC continued to cooperate with Juguang
Elementary School, Haishan Junior High School, Fucheng Junior High School and
the National Taiwan Sport University. Yilan Elementary School, Shiu De Elementary
School and Nancheng Elementary School also signed with the program as well. A total
of NT$12 million was spent on training for athletes at the grassroots level.
To support domestic sporting developments and cultivate competitive athletes at the national level, First Bank has long
provided grassroots support for table tennis targeted at future national representatives. To provide the players with better
training environments and resources, FFHC not only provides national-level instructors and sponsorships for training costs
but also arranges for players to training overseas with other world-class athletes. This is intended to hone the playing skills of
athletes and cultivate more elite athletes of tomorrow so they can do their country proud. The First Bank Men's Table Tennis
Team currently has 12 regular members and 13 reserve players. Four of the regular members have now been chosen by the
national team and two are on the national juniors team. In 2015 they competed in the Philippines, Poland, Thailand, Czech
Republic and China where they always came in the top 3.
FFHC has been hosting national table tennis tournaments
since 2009, In 2015, the 6th national tournament
attracted 110 teams including more than 1300 players,
coaches and parents. This was a new record in both team
numbers and participants! We hope this will identify
talented table tennis players and help cultivate Taiwan's
next King of Table Tennis.
110 teams 1300 players
3First Dream - Pride of Taiwan
3-1 Table tennis training
3-2 First Financial Holding Table Tennis Tournament
3-3 Tennis tournament
3-4 Supporting young entrepreneurs and SME development
3-5 University student assistance program
125
Chi-Chien Lai - Table of Dreams
During the summer before starting second grade, I
attended the table tennis camp at Dayou Elementary
School in Taoyuan and discovered how fun it was.
This was the start of my road to becoming a table
tennis athlete. In 4th grade I became the champion at
numerous competitions large and small throughout
Taiwan. However, my father who had competed in
cycling at the Asia Games, was against me becoming
an athlete. It was not until that I won the team, singles
and doubles champions of the National Freedom Cup
in 6th grade that I convinced my father to let me keep
playing. At the age of 14 I became a member of the
First Bank table tennis training team. At 15, I suffered
a serious setback when I failed to make the national
team even though my coach had held very high
hopes. Nevertheless, I remained undaunted because
the failure only made me all the more committed to
pursuing my dream.
In my third year of junior high school, I traveled by
myself to Europe for off-site training and competition.
I really treasured this exciting opportunity but also
knew that there is a price for everything. Not having
my parents to look after me and the loneliness of
being on my own taught me how to solve problems
by myself. It also gave me a deeper understanding of
my playing technique and the cool to control the pace
of the game. In my first year of senior high school,
I finally took 1st place in the Under 18 division of
the national competition. I was also selected for the
Asian Junior Table Tennis Championships team. This
was the first time that I played for my country. My success
however was followed by 7 to 8 consecutive months of poor
performances. During this time, I lost many games but I kept
telling myself, "I can't give up now. I haven't tried hard enough
yet." So I continued training even harder and kept looking for
solutions before finally making my triumphant return. I twist my
ankle before entering the Under 18 selections in early 2016. I
survived the experience and was chosen as the 5th player. I then
played even better in France to win two silver medals for single
and doubles.
I must thank First Bank for all the assistance they gave me
throughout this process and my parents for their care. Table
tennis is no easy road. Every problem you solve will only be
followed by even more problems. However, setbacks will only
make stronger. I will be facing even tougher opponents and
even greater challenges in the future. I am however ready and
prepared to see it through because my sights are set on the
2020 Olympics!
3-3 Tennis tournamentTo cultivate and encourage national interest in tennis, FFHC
partnered with Maxxis Group, a business customer, to host the
"First Holding Maxxis Cup National Tennis Team Tournament for
six consecutive years. The competition categories spanned all age
groups including the elementary school division, university division,
open division and masters division. The tournament has grown over
the years to become the top tennis team tournament in Taiwanin
terms of scale, total prize pool and prestige. Over the last six years
it has attracted over 10,000 tennis enthusiasts young and oldto
building up a huge "loyal following!"
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Total new loans in 2015 2015 Loan balance
126
3-4 Supporting young entrepreneurs and SME development
FFHC's fulfillment of its CSR is completely integrated with
our core financial expertise. Ideals such as environmental
protection, feedback and caring are now incorporated into
our core operations.Emerging industries and SME usually
lack the size or history of stable profits to qualify for loans
from the finance industry.First Bank has cooperated with
the Small and Medium Enterprise Credit Guarantee Fund
of Taiwan and used its credit guaranteesto expand the
financing options for domestic SMEs.Every effort is made to
support the growth of SMEs. This also indirectly stimulates
domestic economic growthand creates new jobs. At the
end of 2015, SME loans amounted to NT$608.2 billion,
up NT$22.7 billion from the previous year. In addition,
we also received the SMEG "Direct Guarantee Award",
"Young Entrepreneur Assistance Award" and "Supporting
Young Entrepreneurship Award" for five consecutive
years. We also provide all the assistance we can for
young entrepreneurs needing cash flow assistance. This
demonstrated the fact that First Bank is the best partner
for domestic SMEs.
In 2015 First Bank hosted 10 "Corporate Gold Workshop"
events to better serve SME customers in industrial
parks. This was an increase of 2 sessions over 2014. The
Unit : billion
3-5 University student assistance programTo allow university students to control on their studies, we began supporting the Ministry of Education's university student
assistance program in 2012. As of 2015 more than 378 applications have been. Providing assistance to students to let them
concentrate on their studies means that attending university is no longer so far out of reach after all.
workshops provided interest rate forecasts, CSR and environmental education, SME financial planning and SME credit
guarantee, e-commerce and other financial or business management information. Face-to-face analysis and communication
with SMEs are used to strengthen their business operations, save energy and reduce carbon emissions, open up financing
channels and expand their markets. All of these initiatives have a positive impact.
6,082.01,164.0
12.44.5
Small and Medium Enterprise Credit Guarantee Fund (SMEG)
Youth entrepreneurloan
4
First Culture- Grassroots cultural development 4-1 Loans to cultural and creative industry
4-2 2015 Northeast New Year Concert
4-3 Cultivating arts and culture through musical festival
4-5 Supporting local art traditions
4-6 Spring Couplet Giveaway
2014
2015 166
140 Billion
Billion
127
FFHC has defined the promotion of art and cultural developments in Taiwan as its goal and is committed to supporting
aesthetics education in Taiwan. Since 2006, FFHC has regularly hosted symphony orchestras and pop culture concerts
in northern, central and southern Taiwan. Emerging talents in art and culture are invited to join in the performance. In
2009, a large-scale musical event has been held on January 1 each year to bridge the gap with youths. In 2011 the Group's
Headquarters building was converted into the "First Art Space." The venue is provided to creative cultural artists every
month for exhibiting their works. On the eve of Lunar New Year, a calligraphy artist was invited to write Spring couplets. This
was part of the effort to boost the development of local arts and culture in Taiwan.
4-1 Loans to cultural and creative industry
4-2 2015 Northeast New Year Concert
To support the development of the domestic cultural
creative industry, First Bank is cooperating fully with the
government policy by expediting cultural creative industry
loans. In 2015, we lent more than NT$16.6 billion, an
increase of NT$2.6 billion 2014. This also resulted in the
"A-Grade Bank for Creative Industry Loans" award from
the Financial Supervisory Commission.
The FFHC Group has held a dawn concert at the Northeast Cape on January 1 for seven consecutive years. The number of
participants has continued to climb every year. It is now one of the most popular New Year destinations for young people
today. A strong line-up is invited every year to combine a wealth of different performing elements and different kinds of
exotic cuisine. Channel the general public's love for something new into the power to move forward as well as the tourist
planning carried out by the Northeast Cape National Scenic Area Administration. This will help bring tourists and industry
opportunities to the local area.
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4-3 Cultivating arts and culture through musical festival
First Bank is a longstanding supporter of arts and culture. In 2015, a total of 3 concerts were held in northern, central and
southern Taiwan to provide children from rural schools that have developed their own "special culture" with a place to
perform. Apart from cultivating emerging talents who show high potential, First Bank has also taken the unique approach
of mixing orchestral and pop music. The high-quality concerts have won praise and acclaim from customers and employees
alike. Handicapped people from different minority groups and charities were also invited to join the general public on the
day to lose themselves in the music. Between 3,000–4,000 people attended each contract to share in the feast of music.
A total of 27 large-scale orchestral concerts featuring musical classics have been held since 2006, infusing society with
positive energy and harmony. We are continuing to host these large-scale concerts in order to enrich the musical soul of the
Taiwanese people.
4-5 Supporting local art traditions
In 2011, the First Bank Cultural and Education Foundation converted 1F and 2F of the Headquarters building into the "First
Art Space" to provide local Taiwanese artists with an exhibition and performance venue. Mundane building lobby space has
now been transformed into an elegant art gallery with twelve different exhibitions held in 2015. A total of 58 exhibitions
were held between 2011 and 2015. These have proved very popular and attracted more than 11,600 viewers.
2015.12.4
"Chia Yi Elementary
School Choir", Pingtung
Historic City SightsConcert
2015.4.10
"Unique Atayal
College", Hsinchu
"Taiwan Vox Nativa Children's
Choir", Taichung
Flowers of Spring Concert
Lotus Breeze on a Summer Day Golden Classic Concert
Taipei InternationalConference Center
Hui-Sun Auditorium,Taichung
National Cheng KungUniversity, Tainan
2015.7.31
129
Exhibition period Exhibition theme
2015.1.6-1.27 "Blooming Flowers of Fortune Welcome the New Year"
Exhibition of Inkwash Calligraphy by Jo-Hui Chen
2015.2.3-2.24 "Paper Art by Chang-Yu Yeh"
2015.3.10-3.31 "Flow - Fantasy" Exhibition of Oil Paintings by Chiao-Chen Fan
2015.4.7-4.28 "Blending and Conversation of Colors and Texture" Exhibition of
Paintings by Wen-Chang Lin
2015.5.5-5.26 "Hometown" 2015 Exhibition of Original Oil Paintings by Rong Lin
2015.6.9-6.30 "Resonance of the Heart" Exhibition of Original Artworks by Gina Wu
2015.7.7-7.28 "Art Life" Exhibition of Watercolors by Dr. Chung-Cheng Kuo
2015.8.4-8.28 "Casual Adventures - Solo Exhibitions by You-Hui Chung and
Hsueh-Ching Lin"
2015.9.8-9.29 "International Abstract Masters - Exhibition of Creative Works by
A-Shui Chan in his 70th Year"
2015.10.6-10.27 "Floral Make-up - Exhibition of Color Calligraphy by Shu-Mei Chiu"
2015.11.2-11.24 "First Bank 117th Anniversary Photography Exhibition"
2015.12.8-12.30 "Exhibition of Ceramics by Chun-Sheng Yang"
4-6 Spring Couplet Giveaway
To welcome the Lunar New Year, First Bank and the First Bank Cultural and Education Foundation hosted the "Year of the
Goat Spring Couplet Giveaway" event. Renowned calligraphy artists including Hsiang-Ling Kuo, Chao-Yang Kung, Shun-
Lung Lo, Hung-Hsueh Cheng, Liang-Ming Sung, Chien-Chung Hsu, Chung-Hsin Hsieh, Chien-Hung Li, Che-Chang Lin, Hsing-
Hsiung Lin and Cheng-Ta Tsai appeared at 9 branches throughout Taiwan to write and give out spring couplets to customers
visiting the bank on business. The general public not only had the chance to admire the masters at work but could also take
home with them a spring couplet for a festive start to the Year of the Goat.
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131
132
133
G4-1 Provide a statement from the most senior decision-
maker of the organization (such as CEO, chair, or equivalent
senior position) about the relevance of sustainability to the
organization and the organization's strategy for addressing
sustainability.
Message from
the Chairman
4~5
G4-2 Provide a description of key impacts, risks, and
opportunities.
Sustainable
Governance
22
G4-3
Report the name of the organization. Sustainable
Governance
26~27
G4-4 Report the primary brands, products, and services.
Sustainable
Governance
29~30
G4-5 Report the location of the organization's headquarters. Sustainable
Governance
26
G4-6 Report the number of countries where the organization
operates, and names of countries where either the
organization has significant operations or that are
specifically relevant to the sustainability topics covered in
the report.
Sustainable
Governance
26~27
G4-7 Report the nature of ownership and legal form. Sustainable
Governance
28
G4-8 Report the markets served (including geographic
breakdown, sectors served, and types of customers and
beneficiaries).
Sustainable
Governance
26~27
G4-9 Scale of the reporting organization.
Sustainable
Governance
26~27
2015Global Reporting Initiative (GRI) G4.0 Content Index
Note: Indicates that the index is as stated by external independent assurance statement.
Note: Please refer to CSR and Stakeholder Communications Pg. 17~19 for management guidelines on major factors
General Standard Disclosures
Strategy and Analysis
Organizational Profile
Description External verification
Chapter/Description
Page Index
134
G4-10 a. Report the total number of employees by employment
contract and gender.
b. Report the total number of permanent employees by
employment type and gender.
c. Report the total workforce by employeesand
supervised workers and by gender.
d. Report the total workforce by region and gender.
e. Report whether a substantial portion of the
organization's work is performed by workers who are
legally recognized as self-employed, or by individuals
other than employees or supervised workers, including
employees and supervised employees of contractors.
f. Report any significant variations in employment
numbers (such as seasonal variations in employment
in the tourism or agricultural industries).
Happy
workplace
81~82
G4-11 Report the percentage of total employees covered by
collective bargaining agreements.
Happy
workplace
101
G4-12 Describe the organization's supply chain. Green Finance 65~66
G4-13 Report any significant changes during the reporting period
regarding the organization’s size, structure, ownership, or
its supply chain, including:
• Changes in the location of, or changes in, operations,
including facility openings, closings, and expansions.
• Changes in the share capital structure and other
capital formation, maintenance, and alteration
operations (for private sector organizations).
• Changes in the location of suppliers, the structure of
the supply chain, or in relationships with suppliers,
including selection and termination.
Sustainable
Governance
Green Finance
25
65~66
G4-14
Report whether and how the precautionary approach or
principle is addressed by the organization.
Sustainable
Governance
49
G4-15 List externally developed economic, environmental and
social charters, principles, or other initiatives to which the
organization subscribes or which it endorses.
Green Finance 56
G4-16 List memberships of associations (such as industry
associations) and national or international advocacy
organizations in which the organization:
• Holds a position on the governance body.
• Participates in projects or committees.
• Provides substantive funding beyond routine
membership dues.
• Views membership as strategic.
Sustainable
Governance
31~32
Description External verification
Chapter/Description
Page Index
135
G4-17
a. List all entities included in the organization's
consolidated financial statements or equivalent
documents.
b. Report whether any entity included in the
organization's consolidated financial statements or
equivalent documents is not covered by the report.
Sustainable
Governance
24~25
G4-18 a. Explain the process for defining the report content
and the Aspect Boundaries.
b. Explain how the organization has implemented the
Reporting Principles for Defining Report Content.
CSR
and Stakeholder
Communication
10~12
G4-19 List all the material Aspects identified in the process for
defining report content.
CSR
and Stakeholder
Communication
16~19
G4-20 For each material Aspect, report the
Aspect Boundary within the organization, as follows:
• Report whether the Aspect is material within the
organization.
• If the Aspect is not material for all entities within the
organization (as described in G4-17), select one of the
following two approaches and report either:
-The list of entities or groups of entities included in G4-
17 for which the Aspect is not material or
-The list of entities or groups of entities included in
G4-17 for which the Aspects is material.
• Report any specific limitation regarding the Aspect
Boundary within the organization
CSR
and Stakeholder
Communication
16~19
G4-21 For each material Aspect, report the Aspect Boundary
outside the organization, as follows:
• Report whether the Aspect is material outside of the
organization
• If the Aspect is material outside of the organization,
identify the entities, groups of entities or elements
for which the Aspect is material. In addition, describe
the geographical location where the Aspect is material
for the entities identified
• Report any specific limitation regarding the Aspect
Boundary outside the organization
CSR
and Stakeholder
Communication
16~19
G4-22 Report the effect of any restatements of information
provided in previous reports, and the reasons for such
restatements.
About this
Report
1
G4-23 Report significant changes from previous reporting periods
in the Scope and Aspect Boundaries.
About this
Report
1
Identified Material Aspects and Boundaries
Description External verification
Chapter/Description
Page Index
136
G4-24
Provide a list of stakeholder groups engaged by the
organization.
CSR
and Stakeholder
Communication
10~12
G4-25 Report the basis for identification and selection of
stakeholders with whom to engage.
CSR
and Stakeholder
Communication
10~12
G4-26 Report the organization's approach to stakeholder
engagement, including frequency of engagement by type
and by stakeholder group, and an indication of whether any
of the engagement was undertaken specifically as part of
the report preparation process.
CSR
and Stakeholder
Communication
10~12
G4-27 Report key topics and concerns that have been raised
through stakeholder engagement, and how the organization
has responded to those key topics and concerns, including
through its reporting. Report the stakeholder groups that
raised each of the key topics and concerns.
CSR
and Stakeholder
Communication
16~19
G4-28
Reporting period. (such as fiscal or calendar year) for
information provided.
About this
Report
1
G4-29 Date of most recent previous report (if any).
About this
Report
1
G4-30 Reporting cycle (such as annual, biennial). About this
Report
1
G4-31 Provide the contact point for questions regarding the
report or its contents.
About this
Report
1
G4-32 a. Report the ‘in accordance’ option the organization has
chosen.
b. Report the GRI Content Index for the chosen option
(see tables below).
c. Report the reference to the External Assurance
Report, if the report has been externally assured. GRI
recommends the use of external assurance but it is not
a requirement to be ‘in accordance’ with the Guidelines.
About this
Report
1
Stakeholder Engagemen
Report Profile
Description External verification
Chapter/Description
Page Index
137
G4-33 a. Report the organization's policy and current practice
with regard to seeking external assurance for the report.
b. If not included in the assurance report accompanying
the sustainability report, report the scope and basis of
any external assurance provided.
c. Report the relationship between the organization and
the assurance providers.
d. Report whether the highest governance body or
senior executives are involved in seeking assurance for
the organization's sustainability report.
About this
Report
1
G4-34 Report the governance structure of the organization,
including committees of the highest governance body.
Identify any committees responsible for decision-making
on economic, environmental and social impacts.
Sustainable
Governance
34
G4-35 Report the process for delegating authority for economic,
environmental and social topics from the highest
governance body to senior executives and other
employees.
CSR
and Stakeholder
Communication
8~10
G4-36 Report whether the organization has appointed an
executive-level position or positions with responsibility for
economic, environmental and social topics, and whether
post holders report directly to the highest governance
body.
CSR
and Stakeholder
Communication
8~10
G4-37 Report processes for consultation between stakeholders
and the highest governance body on economic,
environmental and social topics. If consultation is
delegated, describe to whom and any feedback processes
to the highest governance body.
CSR
and Stakeholder
Communication
9~10
G4-38 Report the composition of the highest governance body
and its committees by:
• Executive or non-executive
• Independence
• Tenure on the governance body
• Number of each individual's other significant positions
and commitments, and the nature of the commitments
• Gender
• Membership of under-represented social groups
• Competences relating to economic, environmental
and social impacts
• Stakeholder representation
Sustainable
Governance
35~38
Governance
Description External verification
Chapter/Description
Page Index
138
G4-39 Report whether the Chair of the highest governance
body is also an executive officer (and, if so, his or her
function within theorganization’s management and the
reasons for this arrangement).
Our corporate
chairman is
Mr. Ching-
Nian Tsai/
General
Manager
is Ms. Meei-Ling
Jeng
G4-40 Report the nomination and selection processes for the
highest governance body and its committees, and the
criteria used for nominating and selecting highest
governance body members, including:
• Whether and how diversity is considered
• Whether and how independence is considered
• Whether and how expertise and experience relating to
economic, environmental and social topics are
considered
• Whether and how stakeholders (including
shareholders) are involved
Sustainable
Governance
35~38
G4-41 Report processes for the highest governance body to
ensure conflicts of interest are avoided and managed.
Report whether conflicts of interest are disclosed to
stakeholders, including, as a minimum:
• Cross-board membership
• Cross-shareholding with suppliers and other
stakeholders
• Existence of controlling shareholder
• Related party disclosures
Sustainable
Governance
39
G4-42 Report the highest governance body's and senior
executives’ roles in the development, approval, and
updating of the organization's purpose, value or mission
statements, strategies, policies, and goals related to
economic, environmental and social impacts.
CSR
and Stakeholder
Communication
9
G4-43 Report the measures taken to develop and enhance the
highest governance body's collective knowledge of
economic, environmental and social topics.
Sustainable
Governance
40
G4-45 a. Report the highest governance body's role in the
identification and management of economic,
environmental and social impacts, risks, and
opportunities. Include the highest governance body's
role in the implementation of due diligence processes.
b. Report whether stakeholder consultation is used
to support the highest governance body's
identification and management of economic,
environmental and social impacts, risks, and
opportunities.
CSR
and Stakeholder
Communication
Sustainable
Governance
10~12
38~39
Description External verification
Chapter/Description
Page Index
139
140
G4-46 Report the highest governance body's role in reviewing the
effectiveness of the organization's risk management
processes for economic, environmental and social topics.
CSR
and Stakeholder
Communication
10~12
G4-47 Report the frequency of the highest governance
body's review of economic, environmental and
social impacts, risks, and opportunities.
CSR
and Stakeholder
Communication
Sustainable
Governance
10~12
38~40
G4-48 Report the highest committee or position that
formally reviews and approves the organization's
sustainability report and ensures that all material
Aspects are covered.
CSR
and Stakeholder
Communication
10~12
G4-49 Report the process for communicating critical concerns
to the highest governance body.
Sustainable
Governance
38~39
G4-51 a. Report the remuneration policies for the
highest governance body and senior executives
for the below types of remuneration:
• Fixed pay and variable pay:
–Performance-based pay
–Equity-based pay
–Bonuses
–Deferred or vested shares
• Sign-on bonuses or recruitment incentive payments
• Termination payments
• Clawbacks
• Retirement benefits, including the difference
between benefit schemes and contribution rates for
the highest governance body, senior executives, and
all other employees
b. Report how performance criteria in the remuneration
policy relate to the highest governance body’s and
senior executives’ economic, environmental and social
objectives
CSR
and Stakeholder
Communication
41
G4-52 Report the process for determining remuneration.
Report whether remuneration consultants are involved in
determining remuneration and whether they are
independent of management. Report any other
relationships which the remuneration consultants have
with the organization.
Sustainable
Governance
40
Description External verification
Chapter/Description
Page Index
141
Economic
performance
G4-EC1 Direct economic value
generated and distributed.
Sustainable
Governance
28~29
G4-EC2 Financial implications and other risks
and opportunities for the organization's
activities due to climate change.
Green Finance 62~63
G4-EC3 Coverage of the organization's
defined benefit plan obligations.
Happy
workplace
86 , 91
G4-EC4 Financial assistance received
from government.
None
Market
Presence
G4-EC5 Ratios of standard entry level wage by
gender compared to local minimum wage
at significant locations of operation.
Happy
workplace
85~87
G4-EC6 Proportion of senior management hired
from the local community at significant
locations of operation.
Happy
workplace
80
Indirect
Economic
Impacts
G4-EC7 Development and impact of
infrastructure investments and services
provided.
Green Finance
Social Harmony
67~71
100~101
G4-EC8 Significant indirect economic impacts,
including the extent of impacts.Green Finance
Social Harmony
62~65
106~108
Procurement
Practices
G4-EC9 Proportion of spending on local suppliers
at significant locations of operation.
Green Finance 65~67
G4-56 Describe the organization's values, principles, standards
and norms of behavior such as codes of conduct and
codes of ethics.
Sustainable
Governance
42~43
G4-58 Report the internal and external mechanisms for reporting
concerns about unethical or unlawful behavior, and
matters related to organizational integrity, such as
escalation through line management, whistleblowing
mechanisms or hotlines.
Happy
Workplace
102
Ethics and Integrity
Economics
Specific Standard Disclosures
Description
Description
External verification
External verification
Chapter/Description
Chapter/Description
Page
Page
Index
Aspect
142
Energy G4-EN3 Energy consumption within the
organization.
Green Finance 57
G4-EN5 Energy intensity. Green Finance 57
G4-EN6 Reduction of energy consumption. Green Finance 52~71
G4-EN7 Reductions in energy requirements of
products and service.
Green Finance 67~71
Water G4-EN8 Total water withdrawal by source. Green Finance 58
G4-EN10 Percentage and total volume of water
recycled and reused. Green Finance 58
Emissions G4-EN15 Direct greenhouse gas (GHG) emission
(Scope 1)
Green Finance 57
G4-EN16 Energy indirect greenhouse gas (GHG)
emission (Scope 2) Green Finance 57
G4-EN18 Greenhouse gas emissions intensity. Green Finance 57
G4-EN19 Reduction of greenhouse gas (GHG)
emissions.
Green Finance 57
G4-EN20 Emissions of ozone-depleting
substances (ODS).
Green Finance 57
G4-EN21 NOx, SOx, and other significant air
emissions.
Green Finance 57
Effluents
and Waste
G4-EN23 Total weight of waste by type and
disposal method.
Green Finance 60~61
Product and
Service
G4-EN27 Extent of impact mitigation of
environmental impacts of products and
services.
Green Finance 64~65,
67~71
Compliance G4-EN29 Monetary value of significant fines and
total number of non-monetary sanctions
for non-compliance with environmental
laws and regulations.
Green Finance 57
Environment
Description External verification
Chapter/Description
PageAspect
143
Overall G4-EN31 Total environmental protection
expenditures and investments by type.
Green Finance 56
Supplier
Environmental
Assessment
G4-EN32 Percentage of new suppliers that were
screened using environmental criteria.
Green Finance 65~67
G4-EN33 Significant actual and potential negative
environmental impacts in the supply
chain and actions taken.
Green Finance 65~67
Environmental
Grievance
Mechanisms
G4-EN34 Number of grievances about
environmental impacts filed, addressed,
and resolved through formal grievance
mechanisms.
Green Finance 52~71
Employment G4-LA1 Total number and rates of new employee
hires and employee turnover by age
group, gender, and region.
Happy
workplace
82~83
G4-LA2 Benefits provided to full-time employees
that are not provided to temporary
or part-time employees, by significant
locations of operation.
Happy
workplace
84~91
G4-LA3 Return to work and retention rates after
parental leave, by gender.
Happy
workplace
87
Labor/
Management
Relations
G4-LA4 Minimum notice periods regarding
operational changes, including whether
there are specified in collective
agreements.
Happy
workplace
101
Occupational
Health and
Safety
G4-LA5 Percentage of total workforce
represented in formal joint
management-worker health and safety
committees that help monitor and
advise on occupational health and safety
programs.
Happy
workplace
100~101
G4-LA6 Type of injury and rates of injury,
occupational diseases, lost days, and
absenteeism, and total number of
work-related fatalities by region and by
gender.
Happy
workplace
96~97
G4-LA8 Health and safety topics covered in
formal agreements with trade unions.
Happy
workplace
100~101
Labor Practices and Decent Work
Description External verification
Chapter/Description
Page
Social
Aspect
144
Training and
Education
G4-LA9 Average hours of training per year per
employee by gender and by employee
category.
Happy
workplace
99
G4-LA10 Programs for skills management and
lifelong learning that support the
continued employability of employees
and assist them in managing career
endings.
Happy
workplace
99~100
G4-LA11 Percentage of employees receiving
regular performance and career
development reviews by gender and by
employee category.
Happy
workplace
99~100
Diversity
and Equal
Opportunity
G4-LA12 Composition of governance bodies and
breakdown of employees per employee
category according to gender, age group,
minority group membership, and other
indicators of diversity.
Happy
workplace
81~82
Equal
Remuneration
for Women
and Men
G4-LA13 Ratio of basic salary and remuneration
of women to men by employee category,
by significant locations of operation.
Happy
workplace
85~86
Supplier
Assessment
for Labor
Practices
G4-LA14 Percentage of new suppliers that were
screened using labor practices criteria.
Green
Finance
65~67
G4-LA15 Significant actual and potential negative
impacts for labor practices in the supply
chain and actions taken.
Green
Finance
65~67
Labor
Practices
Grievance
Mechanisms
G4-LA16 Number of grievances about labor
practices filed, addressed, and resolved
through formal grievance mechanisms.
Happy
workplace
101
Description External verification
Chapter/Description
PageAspect
Investment G4-HR1 To t a l n u m b e r a n d p e r c e n t a g e o f
significant investment agreements and
contracts that include human rights
clauses or that underwent human rights
screening.
Green Finance 66
G4-HR2 Total hours of employee training on
human rights policies or procedures
concerning aspects of human rights that
are relevant to operations, including the
percentage of employees trained.
Happy
workplace
92~93
Human Rights
Social
145
Non
discrimination
G4-HR3 Total number of incidents of
discrimination and corrective actions
taken.
Happy
workplace
92
Freedom of
Association
and
Collective
Bargaining
G4-HR4 Operations and suppliers identified in
which the right to exercise freedom of
association and collective bargaining
may be violated or at significant risk, and
measures taken to support these rights.
Green Finance
Happy
workplace
65~67
92
Child Labor G4-HR5 Operations and suppliers identified
as having significant risk for incidents
of child labor, and measures taken to
contribute to the effective abolition of
child labor.
Green Finance
Happy
workplace
65~67
92
Forced or
Compulsory
Labor
G4-HR6 Operations and suppliers identified
as having significant risk for incidents
of forced or compulsory labor,
and measures to contribute to the
elimination of all forms of forced or
compulsory labor.
Green Finance
Happy
workplace
65~67
92
Security
Practices
G4-HR7 Percentage of security personnel trained
in the organization's human rights
policies or procedures that are relevant
to operations.
Happy
workplace
93
Indigenous
Rights
G4-HR8 Total number of incidents of violations
involving rights of indigenous peoples
and actions taken.
Happy
workplace
93
Assessment G4-HR9 Total number and percentage of
operations that have been subject
to human rights reviews or impact
assessments.
Happy
workplace
93
Supplier
Human Rights
Assessment
G4-HR10 Percentage of new suppliers that were
screened using human rights criteria.
Green Finance 65~67
G4-HR11 Significant actual and potential negative
human rights impacts in the supply chain
and actions taken.
Green Finance
Happy
workplace
65~67
80~81
Human Rights
Grievance
Mechanisms
G4-HR12 Number of grievances about human
rights filed, addressed, and resolved
through formal grievance mechanisms.
Happy
workplace
102
Description External verification
Chapter/Description
PageAspect
146
Local
Communities
G4-SO1 Percentage of operations with
implemented local community
engagement, impact
assessments, and development
programs.
Sustainable
Governance
26~27
G4-SO2 Operations with significant actual and
potential negative impacts on local
communities.
Locations
of operations
are all used
for office work
and are mostly
located in urban
regions so there
were no related
incidents.
Anti-
corruption
G4-SO3 To t a l n u m b e r a n d p e r c e n t a g e o f
operations assessed for risks related
to corruption and the significant risks
identified.
Sustainable
Governance
44
G4-SO4 Communication and training on anti-
corruption policies and procedures.
Sustainable
Governance
42~44
G4-SO5 Confirmed incidents of corruption and
actions taken.
Sustainable
Governance
44
Public Policy G4-SO6 Total value of political contributions by
country and recipient/beneficiary.
None
Compliance G4-SO8 Monetary value of significant fines and
total number of non-monetary sanctions
for non-compliance with laws and
regulations.
Sustainable
Governance
44
Grievance
Mechanisms
for Impacts on
Society
G4-SO11 Number of grievances about impacts on
society filed, addressed, and resolved
through formal grievance mechanisms.
Social Harmony 108~109
Society
Social
Description External verification
Chapter/Description
PageAspect
Product
and Service
Labeling
G4-PR3 Type of product and service information
r e q u i r e d b y t h e o r g a n i z a t i o n ' s
procedures for product and service
information and labeling, and percentage
of signif icant product and service
categories subject to such information
requirements.
Green Finance
Social Harmony
73
106~109
Product Responsibility
Social
147
Product
and Service
Labeling
G4-PR4 Total number of incidents of non-
compliance with regulations and
voluntary codes concerning product and
service information and labeling, by type
of outcomes.
Green Finance 73
G4-PR5 Results of surveys measuring customer
satisfaction.
Social Harmony 107~108
Marketing
Communications
G4-PR6 Sale of banned or disputed products. Green Finance 73
G4-PR7 Total number of incidents of non-
compliance with regulations and
voluntary codes concerning marketing
communications, including advertising,
promotion, and sponsorship by type of
outcomes.
Green Finance 73
Customer
Privacy
G4-PR8 Total number of substantiated
complaints regarding breaches of
customer privacy and losses of customer
data.
Green Finance 73
Compliance G4-PR9 Monetary value of significant fines
for non-compliance with laws and
regulations concerning the provision
and use of products and services.
Green Finance 73
Description External verification
Chapter/Description
PageAspect
GRI Financial Service Sector Supplement Content Index
FS1/DMA Policies with specific environmental and social components
applied to business lines.
CSR
and Stakeholder
Communication
8
FS2/DMA Procedures for assessing and screening environmental
and social risks in business lines.
CSR
and Stakeholder
Communication
9~12
FS3/DMA Processes for monitoring clients’ implementation of
and compliance with environmental and social
requirements included in agreements or transactions.
Green Finance
Social Harmony
65~67
108~109
Aspect: Product Portfolio
Description External verification
Chapter/Description
Page Index
148
FS4/DMA Process(es) for improving staff competency to implement
the environmental and social policies and procedures as
applied to business lines.
CSR
and Stakeholder
Communication
Green Finance
8
61~62
FS7 Monetary value of products and services designed to
deliver a specific social benefit for each business line
broken down by purpose.
Green Finance
Social Harmony
62~63
113
FS8 Monetary value of products and services designed to
deliver a specific environmental benefit for each
business line broken down by purpose.
Green Finance 62~63,
67~71
Human Rights Principle 1: Businesses should support and respect the
protection of internationally proclaimed human rights;
Happy
workplace
92
Principle 2: Make sure that they are not complicit in
human rights abuses.
Green Finance 65~67
Principle 3: Businesses should uphold the freedom
of association and the effective recognition of the right
to collective bargaining;
Happy
workplace
100~101
Description
The Ten Principles
External verification
Disclosure
Chapter/Description
Chapter
Page
Pg.
Index
Classification
FS9 Coverage and frequency of audits to assess implementation
of environmental and social policies and risk assessment
procedures.
Sustainable
Governance
22
FS11 Percentage of assets subject to positive and negative
environmental or social screening.
Green Finance 56
FS14
Initiatives to improve access to financial services for
disadvantaged people.
Social Harmony 112
Aspect: Audit
Aspect: Active Ownership
Aspect: Local Communities
United Nations Global Compact Content Index
149
Labor Principle 4: The elimination of all forms of forced and
compulsory labor;
Happy
workplace
92
Principle 5: The effective abolition of child labor;and Happy
workplace
92
Principle 6: The elimination of discrimination in respect
of employment and occupation.
Happy
workplace
92
Environment Principle 7: Businesses should support a precautionary
approach to environmental challenges;
Green
Finance
52~62
Principle 8: Undertake initiatives to promote greater
environmental responsibility;and
Green
Finance
52~62
Principle 9: Encourage the development and diffusion of
environmentally friendly technologies.
Green
Finance
62~71
Anti-
Corruption
Principle 10: Businesses should work against corruption
in all its forms, including extortion and bribery.
Sustainable
Governance
42~43
Organizational
governance
Decision –making processes and structures CSR
and Stakeholder
Communication
9~10
Human
Rights
Due diligence Happy
workplace
92~93
Human rights risks situations Happy
workplace
92~93
Avoidance of complicity Sustainable
Governance
42~43
Resolving grievances Happy
workplace
100~102
Discrimination and vulnerable groups Happy
workplace
83~84,
92
Civil and political rights Happy
workplace
92~97
Economic, social and cultural rights Happy
workplace
84~100
Fundamental principles and rights at work Happy
workplace
92
The Ten Principles Disclosure
Disclosure
Chapter
Chapter
Pg.
Pg.
Classification
Core Subjects and Issues
ISO 26000 Index Content Index
150
Labor practices Employment and employment relationships Happy workplace
80~84
Conditions of work and social protection Happy workplace
84
Social dialogue Happy workplace
92~96
Health and safety at work Happy workplace
84~96
Human development and training in the workplace Happy workplace
98~100
The environment
Prevention of pollution Green Finance
52~71
Sustainable resource use Green Finance
58~61
Climate change mitigation and adaptation Green Finance
52~71
Protection of the environment, biodiversity and restoration of natural habitats
Green Finance
52~71
Fair operating practices
Anti-corruption Sustainable Governance
42~43
Responsible political involvement Sustainable Governance
42
Fair competition Sustainable Governance
33~41
Promoting social responsibility in the value chain CSR and Stakeholder Communication
8~15
Respect for property rights Sustainable Governance
42~43
Consumer issues
Fair marketing, factual and unbiased information and fair contractual practices
Green Finance
72~74
Protecting consumers' health and safety Social Harmony
104, 118~120
Sustainable consumption Green Finance
62~71
Disclosure Chapter Pg.Core Subjects and Issues
151
Consumer
issues
Consumer service, support, and complaint
and dispute resolution
Social
Harmony
106~112
Consumer data protection and privacy Green
Finance
72~74
Access to essential services Green
Finance
Social
Harmony
67~71
106~112
Education and awareness Social
Harmony
109~111,
116
Community
involvement
and
development
Community involvement Social
Harmony
112~123
Education and culture Social
Harmony
112~129
Employment creation and skills development Happy
Workplace
80~84
Technology development and access Green
Finance
67~71
Wealth and income creation Social
Harmony
109~111
Health Happy
workplace
Social
Harmony
84~91
119~122
Social investment Social
Harmony
112~129
1 No Poverty Social
Harmony
112~121
2 Zero Hunger Social
Harmony
112~121
3 Good Health and Well-Being Social
Harmony
119~121
Disclosure
Disclosure
Chapter
Chapter
Pg.
Pg.
Core Subjects and Issues
The Seventeen Goals
UN Sustainable Development Goals Content Index
152
4 Quality Education Social
Harmony
116
5 Gender Equality Happy
workplace
92
6 Clean Water and Sanitation Social
Harmony
112~113
7 Affordable Clean Energy Green
Finance
63
8 Decent Work and Economic Growth Happy
workplace
83
9 Industry, Innovation and Infrastructure Green
Finance
67~71
10 Reduced inequalities Social
Harmony
67~71
11 Sustainable Cities and Communities Green
Finance
52~55
12 Responsible Consumption and Production Green
Finance
56 , 67
13 Climate Action Green
Finance
52~62
14 Life Below Water Social
Harmony
113
15 Life On Land Green
Finance
74~76
16 Peace, Justices and Strong Institutions Sustainable
Governance
42~43
17 Partnerships For The Goals Green
Finance
65~67
Disclosure Chapter Pg.The Seventeen Goals
To protect and help improve the global environment, this report was printed on recyled paper using ink made from soy beans.