The latest MSCI ESG Ratings report for 2024 has been released, and Shin Kong Financial Holding has significantly improved from a BBB rating last year to the highest AAA rating. This achievement follows last year's recognition as the second globally and first in Asia in the insurance category of the Dow Jones Sustainability Index (DJSI). It once again demonstrates the high recognition from international ESG raters, establishing Shin Kong Financial Holding as one of the benchmark enterprises in global ESG risk and opportunity management.
MSCI ESG Ratings is one of the most authoritative ESG ratings recognized by global investors. It evaluates companies based on their performance in three main areas: environment, social, and governance, covering seven key themes including climate change vulnerability, human capital development, privacy& data security, responsible investment, and corporate governance. Companies' ESG ratings are divided into seven grades (AAA to CCC). This year, 38 life and health insurance institutions worldwide participated in the ESG ratings, with only 16% achieving the AAA rating. Shin Kong Financial Holding's significant improvement in ratings this year fully demonstrates its long-term commitment to ESG.
According to the MSCI ESG Ratings report, Shin Kong Financial Holding's performance in corporate governance was particularly outstanding this year, leading most global peers and being one of the main reasons for the rating upgrade. The alignment of executive pay practices with sustainable shareholder interests and the company's leading position in ethical management policies, anti-corruption and anti-bribery measures, code of Ethics, whistleblower mechanisms, and tax transparency, both domestically and internationally, were highlighted.
Additionally, for the financial and insurance industry, which heavily relies on human capital, labor management is also a critical issue. Shin Kong Financial Holding not only provides employee support programs that exceed regulatory requirements but also added two days of paid family care leave per year in 2024. According to MSCI's model, this places the company ahead of global peers in labor management. The report also mentioned that Shin Kong Financial Holding has a comprehensive performance appraisal program, and the average employee turnover rate over the past three years is lower than the industry average, showcasing its excellent employee management performance.
On the customer side, according to MSCI's model, Shin Kong Financial Holding has demonstrated best practices in customer privacy and data security, including continuously strengthening backup system levels, conducting regular drills, and adopting standards such as ISO 27001 to ensure business operations and protect customer rights with the highest specifications.
Shin Kong Financial Holding established the Corporate Sustainability Committee under the board of directors in 2018 to actively promote sustainable development from the top down. In recent years, it has achieved excellent results in various domestic and international sustainability evaluations, demonstrating its corporate sustainability achievements. In addition to the MSCI ESG rating upgrade, Shin Kong Financial Holding was also re-selected as a constituent of the FTSE4Good Index and the Taiwan Sustainability Index in 2024. Its excellent employee health care program won the silver award in the large enterprise financial industry category of the CommonWealth Corporate Health Responsibility Award (CHR). Furthermore, it received national recognition such as the National Enterprise Environmental Protection Award from the Ministry of Environment and the National Sustainable Development Award from the Executive Yuan's Sustainable Development Committee, as well as a series of awards including the Taiwan Corporate Sustainability Award (TCSA), the Global Corporate Sustainability Award (GCSA), the Asia Pacific Sustainability Action Award (APSAA), and the Taiwan Sustainability Investment Award (TSIA), totaling over 24 honors.
Shin Kong Financial Holding Chairman Mark Wei stated that this excellent rating result is primarily due to the clear policies and execution directions in various ESG aspects planned by the financial holding company and its subsidiaries over the years, as well as the continuous deepening of employees' sustainable education and training, laying a solid foundation for ESG. This has led to significant growth across all ESG aspects. In the future, Shin Kong Financial Holding will continue to uphold the corporate sustainability values of "low carbon," "innovation," and "common good," striving to enhance shareholder value while continuously creating greater impact for economic prosperity, social welfare, and environmental sustainability.
