Cathay Financial Holdings CO., LTD
Cathay has transformed the idea of “corporate social responsibility” into “corporate sustainability” to elevate our vision.
INTRODUCTIONBased on the core principle of “managing for the long term,” Cathay Financial Holdings aspires to be the most trustworthy and reliable financial holding company and to be a leading financial institution in the Asia-Pacific region. Cathay upholds the trio engines of “insurance, banking, and asset management” as our development strategy. In the meanwhile, Cathay cares about sustainability by incorporating ESG into corporate management and investment decisions. Even though Taiwan, which is not a member of the United Nations, is unable to sign the Principles for Sustainable Insurance, and the Principles for Responsible Investment (PRI), Cathay remains dedicated to the active implementation of these principles and values initiatively. Cathay strongly believes that the wellbeing of the financial industry is predicated upon a sustainable society and environment. Cathay provides a comprehensive range of products and top-quality services that serve to create lasting value for the company, industry, and society.
FRAMEWORK AND STRATEGYThe corporation towards to sustainable development is the process of creating value for all stakeholders. Furthermore, Cathay has transformed the idea of “corporate social responsibility” into “corporate sustainability” to elevate our vision. To fulfil commitment to sustainability, Cathay has evaluated the current situation in Taiwan and the UN’s SDGs based on the core competencies and selected four major issues as the company’s long-term value. Aiming to become one of the leading financial institutions in Asia-Pacific region, Cathay realizes governance is the fundamental foundation. Cathay created the Corporate Governance Project Team in 2010 to improve the Group’s corporate governance structure. In 2011, the Corporate Social Responsibility Committee under the Board of Directors (renamed to the Corporate Sustainability (CS) Committee in 2015) was subsequently established to push forward on corporate governance practices. The original corporate governance team was folded into the Sustainable Governance Working Group, one of six working groups under the CS Committee, to strengthen the Group’s sustainable governance measures. The performance of corporate sustainability will be reviewed periodically in the board.
ACHIEVEMENT AND IMPACTCathay has been recognized by the government, media, and world’s famous ESG rating institutions as a sustainable corporate. Cathay has been for three years consecutively selected as a DJSI Emerging Markets constituent stock of the Dow Jones Sustainability Index (DJSI), a crucial indicator of corporate sustainability management internationally. In 2017, Cathay received an honour of being selected as constituent stock of FTSE4Good TIP Taiwan ESG Index (F4G TIP TW ESG Index). Besides, Cathay have been selected “Top 10% of TWSE/GSMT Listed Companies” in “Corporate Governance Evaluation.” To advance corporate structure, Cathay set up the Corporate Governance and Nomination Committee, which is composed of three directors (including two independent directors) and assist the board of directors to enhance corporate governance effects. In response to emerging risks such as climate change, the aging population, and the rise in health risks, Cathay developed the risk map including the emerging risks. Besides, recognizing the need to adhere to global trends in the strengthening of tax governance and fulfilling obligations as a responsible corporate citizen, Cathay established Tax Governance Policy based on the principles of good faith and integrity to implement corporate sustainability and enhance shareholders value.
FUTURE DIRECTIONCathay aims at becoming the most trustworthy finance institution in Asia by leveraging the core functions of the financial industry to fulfil sustainability. Cathay believes that the continuous growth of financial industry relies on social and environmental sustainability. In view of this, Cathay promulgated the Cathay Declaration of Sustainable Values to extend influence on external suppliers and joint ventures and continue to promote sustainable values. Considering international developments and identifying key social issues in Taiwan based on the finance industry’s core competencies, Cathay determined four focus areas of corporate sustainability, namely Renewable Energy and Infrastructure, Aging Society and Health, Women Empowerment, and Community and Financial Inclusion to fulfil commitment to sustainability. In terms of directing focus on sustainability initiatives, six working groups under CS Committee have continuously committed themselves to guiding investments and driving innovation in line with the UN’s Sustainable Development Goals (SDGs).
Cathay Financial Holdings is the pioneer among its fellows in practicing corporate sustainability with its core competence. Cathay has dedicated to internalizing the concept of corporate sustainability within its company culture. Cathay is leading its peer in finding the balance between profit gaining and caring for our society and environment and prospering with the world.