Sustainable Finance Strategy

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Sustainable Finance Strategy

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SDGs

Sustainable Finance Strategy

SKFH is committed to promoting sustainable development, uses its core competencies and professionalism to fulfill the “Sustainable finance” spirit and contribute to the sustainable development of society. We actively supporting to the United Nations Sustainable Development Goals(SDGs) and the Taiwanese government's target of 2050 net-zero emissions. We encourage our subsidiaries and outsourced investment institutions to integrate environment, social, corporate governance (ESG) and climate change considerations into financial activities such as investments, lending, life insurance, and asset management. SKFH and its subsidiaries voluntarily adhere to internationally advocated principles, including the Principles for Responsible Investment(PRI), Principles for Responsible Banking(PRB), Equator Principles(EPs), and Principles for Sustainable Insurance(PSI), and cooperate with customers, suppliers partners and other stakeholders to promote sustainable financial products and services.

In the future, we will continue to follow sustainable development trends, gradually increase the proportion of responsible investment, and effectively keep pace with global sustainability and positive opportunities.


 


Sustainable Finance Policy

SKFH has formulated the "SKFH Sustainable Finance Policy" adhering to the United Nations PRI, PRB, PSI, and EPs. The policy regulates SKFH and its subsidiaries’ to incorporate ESG factors into their financing activities such as investment, lending, and life insurance. Before making decisions, ESG risks and opportunities due diligence must be conducted and evaluated prudently. Those included in the exclusion lists should avoid dealing with each other.

In addition, in order to safeguard shareholders, employees and customers’ long-term value, reduce sustainability-related risks, and seize opportunities. SKFH upholds the function of pooling market funds for investment as a financial institution and fulfills the spirit of stewardship for institutional investors to formulate engagement policies and voting policies as the stewardship behavior standards for each subsidiary. Subsidiaries need to take engagement actions based on the engagement issues that SKFH is
concerned about, and continue to pay attention to the operation status and sustainable performance of counterparties, actively attend annual general meeting, exercise voting rights, and properly dialogue and interact with the management of the counterparty. If the counterparty does not make improvements, no new transactions are allowed. If the deterioration of counterparties continue, capital reduction or  divestment actions should be taken.

 
SKFH Sustainable Finance Policy
 

The sustainable finance policy covers 100%
of the total managed assets of all applicable responsible investment and responsible lending.

 

The Principles Sustainable Insurance (PSI)

 
  • Principle 1
  • Principle 2
  • Principle 3
  • Principle 4
  • We will embed in our decision-making environmental, social and governance issues relevant to our insurance business
 
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Issues Key Plans and Results
Company strategy
  • Shin Kong Life has set up a Corporate Sustainability Committee, with the President as the Chairperson and the first-level supervisor of each jurisdiction as the Commissioner(Committee Member)
  • The members of the committee pay attention to ESG issues, formulate annual strategic goals, and the executive team under the committee develops various implementation plans, tracks ESG implementation status and results on a quarterly basis, and regularly reports to the Board of Directors after deliberation by the senior executives of the committee
  • Establish culture that protects human rights and diversity, incorporates human rights issues into human resource policies, provides company benefits that are superior to labor standards, protects the rights and interests of minorities and vulnerable employees, and incorporates ESG into compulsory courses for all employees
Risk Management
  • Establish risk management procedures to identify related risks such as product design and pricing risks, insurance underwriting risks, reinsurance risks, catastrophe risks, compensation claim risks, and preparatory fund risks including the potential impact of ESG issues
  • Introduced TCFD to identify and evaluate climate-related risks and opportunities as well as their impacts
  • Continue to obtain ISO 27001, the international standard for information security and BS 10012 certification for personal data management to effectively manage information security and personal information risks
Products and services
  • In response to changes in social structure, the needs of policyholders, the advancement of underwriting technology and product research and development, we provide ESG products such as micro-insurance, spillover-effect products, and Small-Amount Whole Life Insurance
  • Provide awareness campaigns and educational programs on risks, insurance and ESG issues that children, young adults and the elderly may encounter
Sales and marketing
  • Pay attention to consumer rights and interests in marketing and put forward preventive and protective measures for the financial exploitation of the elderly, including three aspects: prevention, protection and control. A CIS system and a sign language video translation platform are built for the disadvantaged groups to implement the spirit of fair customer treatment
  • Electronic based promotion of e-products, e-documents, etc., coordinating online and offline resources, and combining with Shin Kong Life’s official LINE account service center so that services are not limited by time and place
  • The sales and promotion of various commodities are in compliance with laws and regulations. Shin Kong Life also requires all sales channels and business personnel to produce and use promotional materials and strive to ensure the authenticity, accuracy, clarity and completeness of commodity information to protect the public's' rights and interests, as well as to maintain the company's professional image
Underwriting Policies
  • Established an "underwriting risk classification model", started the application of big data in underwriting risk management, used claims data and underwriting experience from the past in combination with data mining technology to conduct risk screening, applied it to high-risk customers in practical operations, and carry out random inspections
  • In response to the inclusive financial policy, there will be no unfair treatment in underwriting for specific insured objects or because the insured is physically or mentally handicapped
Claims management
  • In the face of emergencies and disasters, the Company will evaluate and initiate active care and quick claims settlement operations. Assist with real estate maintenance and information equipment maintenance at the disaster site
  • Continue to improve the mechanisms and procedures for approving claims and establish a claims approval risk model to divide operations based on the risk rating screened with back-end high-risk and low-risk models. Low-risk cases are processed with automatic compensation mechanisms and the time required for processing claims can be shortened to within hours
  • Policyholders over the age of 20 who hold a Shin Kong Life insurance policy can apply for mobile protection/claims through their salesperson, and use a shared platform through insurance technology, allowing policyholders who hold multiple insurance policies to apply online for health insurance, injury insurance medical claims payment or insurance contract changes from any insurance company, and enjoy services from different companies simultaneously
Investment management
  • Formulate the “General Policies and Procedures for Securities Investment” to include sustainable investment in the investment process of securities and make ESG-related evaluation on target investment company before investment. The contents of evaluation including environmental protection, ethical management and social responsibility

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