Fubon Securities Sustainability Strategy and Implementation Results

1. Sustainability Strategy and Focus

Fubon Securities upholds Fubon Financial Holdings' core corporate values of "Integrity, Sincerity, Professionalism, and Innovation," building a corporate culture rooted in integrity. To implement good corporate governance, the Company continuously enhances compliance efficiency, ensuring all business operations are conducted with integrity and in accordance with laws and regulations. An information security system is in place to safeguard customer rights and ensure stable operations, and a "Risk Management Policy" has been formulated with "Identification, Measurement, Management, and Supervision" as the framework for risk management, effectively enhancing risk governance and promoting sustainable financial transformation. The Company aims to create long-term value for investors and all stakeholders through good corporate governance and integrity while leveraging its core financial functions to promote various sustainable action plans, thus exerting a sustainable impact.

Sustainability strategy Implementation focus Sustainability issues Fubon Securities addressed Corresponding SDGs
Decarbonization
Assisting clients with sustainable transformation

To achieve net-zero carbon emission goals, Fubon Securities reduces the environmental footprint of its business operations and formulates sustainable financial policies to guide the green transformation of industries. Responsible investment strategies and action plans are further enhanced by incorporating ESG-related indicators of investment targets into evaluation criteria. Through the influence of capital, the Company aims to guide enterprises in addressing climate change and prioritizing sustainable development.

  • Green finance
  • Climate change action
  • Green operation and goals
Innovation
Providing optimal financial services

Fubon Securities offers innovative financial services and experiences through mobilization and digitalization, catering to the diverse investment and wealth management needs of clients. In the face of financial technology innovations, the Company continues to enhance the application of artificial intelligence and big data. The rights of financial consumers are prioritized as we provide friendly financial services and deepen customer relationships and loyalty.

  • Customer relationship management
  • Financial technology and innovation
Empowerment
Creating a friendly, healthy, and happy workplace

Fubon Securities fosters an atmosphere of diversity, respect, and harmonious communication. We continuously promote talent development, attraction, and retention plans in a healthy and safe work environment. Human capital is one of the important assets for Fubon Securities' sustainable operations. Through biennial employee opinion surveys, we understand key internal issues and employees' engagement with the Company.

  • Talent development and retention
  • Healthy workplace
  • Diversity, equality and human rights
Connection
Connecting positive social forces

Fubon Securities utilizes its financial capabilities to eradicate poverty, promote financial inclusion, and reduce the wealth gap, aspiring to stabilize society as a financial service provider. We also encourage employees to participate in public welfare activities and offer opportunities and platforms for personal growth through diverse initiatives. By linking positive forces through Fubon Financial Holdings' foundations and Fubon Securities' public welfare platform, the Company seeks to make a positive impact and drive social change.

  • Financial inclusion
  • Social welfare development

2. Decarbonization

2.1 Green Finance

  • Principle for Sustainable Finance

    Fubon Securities adheres to the "Fubon Financial Holding Co., Ltd. and Subsidiaries Sustainable Finance Policy" established by its parent company, as well as the "Stewardship Principles for Institutional Investors" issued by the Taiwan Stock Exchange Corporation. Also, in alignment with the United Nations Principles for Responsible Investment (PRI), environmental, social, and corporate governance (ESG) considerations are integrated into its business operations. These commitments are reflected in the Company's existing internal policies and regulations.

  • Implementing Responsible Investment

    Fubon Securities consistently leverages its financial influence to implement responsible investment. By integrating ESG into its investment decision-making process, the Company evaluates and analyzes whether the target companies fulfill their environmental protection, social responsibility, and corporate governance commitments. Moreover, post-investment follow-up reviews are conducted through exercising shareholder activism.

    Moreover, in accordance with the "Fubon Financial Holding Co., Ltd. and Subsidiaries Sustainable Finance Policy" established by our parent company, Fubon Securities actively assists companies that contribute to mitigating climate change or environmental risks by facilitating their listing and public fundraising. Through IPO advisory services, attending shareholder meetings, exercising voting rights, and engaging in constructive dialogue, the Company encourages enterprises to formulate sustainability development plans and net-zero transition strategies, particularly urging high-carbon-emitting companies to implement measures to reduce greenhouse gas emissions.

    (1)In fulfilling corporate social responsibility, Fubon Securities assists enterprises with the issuance of green bonds or sustainability bonds. Our participation in green bond underwriting in 2023 has reached73%.

    (2)Based on our underwriting expertise, Fubon Securities offers financing services to enterprises that contribute to products or services that reduce climate change or environmental risks. The financing amount underwritten for companies contributing to environmental sustainability in 2023 accounts for 51%.

  • SBT Implementation Results

    Fubon Securities, in alignment with the Science Based Targets initiative (SBTi) Project of Fubon Financial Holdings, has conducted an inventory of its investment portfolio. Each quarter, the Company provides the Financial Trading Department and Investment Banking Department with a list of companies that have set SBT targets, as disclosed on the SBT website, for reference in investment evaluations. We also regularly track the proportion of carbon reduction targets in Scope 3 investment positions. The Company utilizes the SBT portfolio coverage to calculate the proportion of its investment portfolio that includes companies with established SBTs. The goal is to achieve 100% SBT coverage by 2040, with interim targets set every five years as the Company regularly monitors the achievement rate of SBT coverage within its portfolio.

    In 2023, the proportion of Scope 3 investment positions that have committed to and completed SBT settings was 18%.

  • Engagement Action

    Each year, the Company interacts with its invested companies through conference calls, site visits, participation in investor conferences, annual general meetings, or significant extraordinary shareholder meetings to gain a deeper understanding of the risks and strategies faced by the industries in which these companies operate. We also communicate with management to safeguard shareholders' rights and uphold the principles of diligent governance. If an invested company significantly violates corporate governance principles or risks harming long-term shareholder value on specific issues, the Company may periodically inquire with the management about how these issues are being addressed and may consider joining forces with other investors to express concerns collectively.
    Additionally, to ensure that engagement activities align with policy objectives, the Company evaluates the need for engagement, reviews engagement activity data, and strengthens the planning of engagement activities.

2.2 Climate Change Action

  • Climate Change Management Policy

    Recognizing the potential impacts of climate change on environmental ecosystems and the Company's business development, Fubon Securities has taken steps to strengthen its focus on and management of climate change. In 2019, Fubon Securities integrated the "Fubon Financial Holdings Co., Ltd. and Its Subsidiaries Climate Change Management Guidelines" into its "Fubon Securities Co., Ltd. Risk Management Policy" in alignment with the Fubon Financial Holdings' adoption of the Task Force on Climate-Related Financial Disclosures (TCFD) framework issued by the Financial Stability Board (FSB). This framework helps identify climate risks and opportunities and corresponding measures, thereby enhancing resilience against climate risks and improving the ability to seize business opportunities. Meanwhile, the Company actively promotes various environmental protection, energy-saving, and carbon reduction initiatives, reduces greenhouse gas emissions, and advocates for green financial services.

  • Identification of Climate Risks and Opportunities and Materiality Ranking

    Fubon Securities categorizes climate change-related risks into "physical risks" and "transition risks" based on TCFD's list of risks and discussions referencing climate-related information from both domestic and international sources. Physical risks refer to immediate and long-term physical impacts caused by extreme weather events, while transition risks arise from changes in policies, regulations, technology, market dynamics, and reputation, leading to direct or indirect impacts. Each year, the Company identifies and assesses significant climate change risks and opportunities, with analysis conducted on their potential impacts and corresponding risk response measures. These findings are reported to the Risk and Asset-Liability Management Committee and the Board of Directors.

2.3 Green Operation and Goals

  • Low-Carbon Initiatives

    In response to climate change and the global trend of reducing greenhouse gas emissions, Fubon Securities is committed to creating a low-carbon operating environment. Since 2016, the Company has adhered to the "Climate Change Management Guidelines" established by Fubon Financial Holdings and issued an "Environmental Policy Statement" with environmental improvement goals set along with consistent energy-saving and carbon-reduction efforts. The main directions include:

    • 1. Conducting annual greenhouse gas inventory certification and implementing measures to reduce greenhouse gas emissions.
    • 2. Strategically upgrading energy-saving and water-saving equipment, enhancing energy-saving awareness, and reducing unnecessary electricity and water usage through management practices.
    • 3. Installing solar power generation equipment and purchasing renewable energy.
    • 4. Implementing waste sorting to reduce the production of waste.
    • 5. Purchasing products with energy-saving, eco-friendly, and green building material certifications.
    • 6. Regularly conducting environmental awareness campaigns to deepen employees' understanding of environmental sustainability.
Goal 2023 performance 2023 target Achievement rate
Operational carbon reduction
(2020 as baseline year)
17% 12.6% 135%
Grey power reduction
(2020 as baseline year)
13.6% 15.3% 112%
Photocopy paper reduction goal
(2020 as baseline year)
12% 29% 242%
Water conservation
(2019 as baseline year)
4.5% 21.6% 480%
Reduction in waste generated per capita
(2021 as baseline year)
28.1% 3% 936.7%

3. Digitall

3.1 Financial Innovation Services

Fubon Securities continuously enhances the practicality and usability of its overall digital experience by initiating iterative optimizations across various trading platforms. We collaborate with Taipei Fubon Bank and LINE Bank to jointly promote a digital financial ecosystem, offering a more streamlined account opening and trading experience that enables customers to enjoy seamless financial services. To provide customers with 24/7 service access, Fubon Securities has integrated digital finance with a humanized approach in its smart customer service chatbot to meet the consultation needs of digital-savvy customers. In 2023, the intelligent chatbot was used 518,062 times, with a service capacity 3.7 times greater than that of human customer service.

On the AI application front, the Company has built a strong foundation in data governance as it consistently enriches data depth. AI modeling techniques are utilized to enhance data value through customer segmentation and precise tagging. By conducting in-depth data analysis of customer behaviors, the Company identifies advanced customer needs and designs appropriate communication content, delivering automated push notifications via multiple channels such as applications, email, and LINE. This approach continues to deepen the application of AI technology in providing personalized online services.

  • Innovative Patent Applications

    Fubon Securities is committed to developing financial innovation patents to promote sustainable finance, provide innovative services, and contribute to the advancement of the financial industry and society. As of the end of 2023, the Company holds a total of 31 innovation patents, 10 of which were newly added in 2023.

3.2 Financial Inclusion

  • Odd-Lot Trading

    Fubon Securities offers odd-lot trading services during and after market hours on various electronic platforms, which significantly lowers the entry barriers for small investors in the Taiwan stock market and embodies the spirit of financial inclusion. In 2023, the total odd-lot trading volume reached NT$117.205 billion, with a total of 9,573,585 transactions.

  • Regular Fixed-Amount Stock Transactions

    Fubon Securities offers a regular fixed-amount investment plan for purchasing Taiwan stocks (including ETFs), enabling investors to participate in the Taiwan stock market through a steady and disciplined approach, thereby mitigating price risks and averaging costs. With a minimum monthly investment of just NT$1,000, even novice investors and small investors can easily start accumulating wealth. In 2023, transactions under NT$3,000 accounted for 66% of all transactions deducted, representing a 30% increase compared to the previous year.

  • Regular Fixed-Amount Fund Transactions

    In 2023, Fubon Securities expanded the options for deduction dates for its regular investment fund plans, allowing investors to spread out their investments according to their needs. Additionally, we offer discounts for handling fees at times to encourage digital transactions, furthering the spirit of financial inclusion. In 2023, transactions under NT$3,000 accounted for 57% of all transactions deducted, representing a 2% increase compared to the previous year.

  • Regular Fixed-Amount U.S. Stock Transactions

    To bridge the generational gap, the Company offers a convenient overseas investment environment for small investors, allowing them to participate in U.S. stock investments with a low entry threshold of just NT$1,000. Moreover, there is no minimum handling fee for purchasing overseas stocks, which significantly lowers the barriers to investing abroad. The regular fixed-amount investment plans for U.S. stocks now include 48 listed individual stocks. In 2023, transactions under NT$3,000 accounted for 57% of all transactions deducted, representing a 150% increase compared to the previous year. Notably, the number of NT$1,000 deduction transactions grew 41 times compared to the previous year.

3.3 Customer Relationship Management

Fubon Securities places great importance on customer rights. With the "Treating Customers Fairly (TCF) Principles" at the core of its business operations as the code of conduct for customer service, the Company enhances employees' awareness of customer protection and compliance with relevant regulations, thereby promoting sustainable operation and corporate development.
In 2021, the Company established the Fair Customer Treatment Committee, a dedicated unit responsible for handling issues related to fair customer treatment. The implementation of the TCF principles by various departments is supervised by the Compliance and Legal Affairs Department, which identifies and addresses potential violations, and reports to the Board of Directors annually. To further enhance the frequency and level of supervision, we established the Sustainable Development Committee in December 2023. Following this, the Fair Customer Treatment Task Force reports quarterly to the Sustainable Development Committee on the implementation of the TCF principles.

3.4 Financial Friendly Initiatives

Item Service Positive impact and function

Financial Friendly Service Section

Visually and hearing-impaired individuals can access this section to understand in advance whether the environmental measures at service locations meet their needs. This section complies with the NCC-certified "Accessibility Label 2.0."

  • It ensures that disadvantaged and disabled groups fully enjoy basic rights and equal and reasonable access to financial services.

Fubon Investment Strategy — Podcast on daily stock market analysis

The podcast, launched in collaboration with Fubon Securities Investment Services, allows investors to quickly grasp market analysis in an audible format before the market opens daily.

  • It reduces the risk of reading text during commutes.
  • It provides a solution for those who have difficulty reading.

Toll-free senior hotline

Leading the industry, this line is designed for customers aged 65 and above, allowing them to quickly connect with the appropriate channel and dedicated service personnel without navigating through multiple menu layers. Their inquiries will be directly handled by experienced senior customer service staff.

  • Pressing the * key directly connects to a dedicated service representative, without the need to input personal information first.
  • Customer satisfaction in 2023: 99.5%.

Friendly service locations

Each service location offers reading glasses and business card-sized magnifiers for elderly customers and provides sign language translation services.

  • This facilitates proper service for elderly or other customers in need.

Friendly service locations

In 2023, 11 branches nationwide implemented the "I Serve You" fast-track counter, providing investors with prompt handling of five services (passbook updates, basic information changes, transaction record printing, password reissue, and buy/sell limit adjustments) daily from 11 AM to 2 PM. It is expected to be expanded to all branches nationwide in 2024.

  • Customers' needs for simple services are quickly met, saving them time and improving their satisfaction and future usage.

Multilingual services

Bilingual (Chinese and English) and multilingual (Taiwanese) services are provided at the counter, via customer service phone, and through the customer service email.

  • This allows us to serve diverse groups, eliminating communication barriers in financial services and reducing the possibility of information asymmetry.

Anti-Fraud Section on the official website

Established in 2023, this section actively assists customers in preventing fraud to enhance the security of financial flows and protect legitimate economic activities.

  • It provides timely announcements and proactive reminders.
  • Various types of fraud prevention information are available.
  • It offers relevant anti-financial fraud resources for inquiries.

4. Empowerment

4.1 Sustainable Workplace and Career

Fubon Securities values gender equality in the workplace, providing employees with fair and reasonable treatment, diverse employment opportunities, and career development. The Company is committed to gender equality in salary, benefits, promotion opportunities, and retirement benefits by actively promoting gender equality measures. We foster an atmosphere of diversity, respect, and harmonious communication while continuously advancing talent development, attraction, and retention programs to create a healthy and safe work environment. Moreover, through the employee engagement survey conducted every two years, we understand key internal issues and employee satisfaction with the Company.

4.2 Talent Cultivation

Fubon Securities follows the ESG Visioning blueprint of Fubon Financial Holdings, which outlines four sustainability strategies: "Decarbonization, Digitalization, Empowerment, and Connection." The "Empowerment" strategy focuses on creating a friendly, healthy, and happy workplace. Through talent development and cultivation, the Company aims to nurture and retain talent, ensuring that they can contribute to the Company while enjoying opportunities to fully leverage their potential.

The Company has a comprehensive training system in place, offering employees diverse and professional training courses. It actively plans for employees to participate in various financial professional lectures, digital technology courses, and ESG sessions, covering themes such as sustainable impact, sustainable finance, and green operations. The goal is to not only enhance employees' professional competencies but also internalize ESG practices as the cornerstone of corporate sustainable development.

4.3 Employee Benefits and A Healthy and Safe Workplace

Committed to providing comprehensive care for its employees and the promotion of healthy lifestyles, Fubon Securities organizes numerous activities each year, such as hiking, club events, wellness workshops, fitness exercises, and employee travel activities, all aimed at balancing employees' physical and mental health. In 2023, these activities had 13,251 records of attendance cumulatively. The Company also plans various sports courses annually and arranges for professional coaches to assist employees in physical training, promoting a culture of fitness among staff. Our efforts have been consistently awarded the Ministry of Education's "Sports Enterprise Certification."

To increase the birth rate, the Company provides maternity leave, paternity check-up leave, and paternity leave that are more generous than those mandated by the Labor Standards Act. Additionally, the Company offers a birth subsidy of NT$100,000 per child and a childcare subsidy of NT$15,000 per year for each child aged 0 to 6. In 2023, the Company spent over NT$11 million on childbirth and childcare subsidies and scholarships for employees' children. The annual crude birth rate among our employees reached 8.4‰, which is 1.4 times the national crude birth rate in Taiwan.

Fubon Securities is committed to establishing a high-quality and safe workplace environment. In accordance with the Occupational Safety and Health Act, the Company has developed several occupational safety and health policies, including the "Plan to Prevent Unlawful Harm in the Workplace," "Ergonomic Hazard Prevention Plan," "Plan to Prevent Illness Caused by Abnormal Workloads," and the "Maternal Health Protection Plan." By actively promoting various employee protection measures, the Company strives to ensure the safety and health of all employees and to prevent any risks in the workplace that could endanger them.

4.4 Human Rights Commitment

Dedicated to upholding basic human rights and eliminating any acts that infringe upon or violate these rights, Securities strictly adheres to relevant national labor laws and the "Human Rights Policy" established by Fubon Financial Holdings in its efforts to foster a human rights protection environment based on protection, respect, and remedy. The Company supports and follows the United Nations' Universal Declaration of Human Rights, the Global Compact, the International Labour Organization Conventions, the Principles for Responsible Investment, the Equator Principles, and local laws, ensuring that all employees are treated fairly and with dignity.

5. Connection

5.1 Social Welfare Vision and Strategy

Driven by an “action-oriented” philanthropic philosophy, Fubon Securities continues to promote public welfare and give back to society by delivering care and support to those in need. The Company's social welfare efforts focus on three main areas: education promotion, care for the underprivileged, arts and sports. The education promotion aspect encompasses financial inclusion, health promotion, and education for children and youth.

Three Key Areas of Social Welfare Actions

Area of focus Target group Development priorities

Education promotion

Rural areas General public Children and youth

  • Convey financial knowledge and concepts, helping people of all ages to become familiar with financial services and achieve financial inclusion.
  • Actively promote financial education through various communication channels, including physical events, online videos, and podcasts.

Care for the underprivileged

Disadvantaged groups Local communities

  • Encourage employees to participate in charitable proposals through the Fubon Charity Foundation, creating opportunities for employees to lead social welfare projects voluntarily.
  • Plan themed social welfare activities for communities and groups.

Arts and sports

Taiwanese cinema Classical music Sports activities

  • Collaborate with Fubon Financial Holdings in sponsoring arts and sports, directing funds to support film production, music events, and sports competitions that require financial support.

Under the "Connection" sustainability strategy, Fubon Securities has set two sustainability indicators: "records of participation in financial education promotion" and "records of volunteer participation. In 2023, the records of volunteer participation grew by nearly 20% compared to the previous year (2022), with a total of 3,170 hours contributed.

Sustainability Indicator - Connection 2023 target 2023 performance
Records of attendance for financial education 700 632
Records of volunteer participation 500 526

5.2 Social Welfare Island Tour

In 2023,The Social Welfare Tour embarked from Keelung, stopping at various locations including Taipei, New Taipei, Zhudong, Taichung, Changhua, Huwei, Taitung, and Hualien. Over the course of the year, 12 public welfare events were held, with nine of these events utilizing a series of engaging, educational, and entertaining financial interactive activities to promote correct financial practices and anti-fraud awareness.

5.3 English Financial Education Series for Children

Building on the project from 2022, Fubon Securities continued its partnership with well-known podcast creators in 2023 to produce a program that integrates financial literacy, bilingual education, and vocabulary explanations into original stories, promoting English financial education for children. Five episodes were produced and aired, cumulative number of first-time listens reaches 513,000.

5.4 Granting Wishes for Children's Future

Children from economically disadvantaged families in remote areas often have limited resources. Their wishes are simple and pure, perhaps just a set of watercolor supplies, but these small wishes can open up infinite possibilities for their futures. Since 2013, Fubon Securities has partnered with the Fubon Charity Foundation to collect these wishes from students through partnering schools each year. Employees then fulfill these wishes through donations of supplies or small monetary contributions, spreading love and ensuring that these Children's Day gift wishes come true. Over the nearly five years from 2019 to 2023, more than 11,000 children's wishes have been fulfilled, including 2,181 wishes in 2023. As in previous years, the gifts were delivered to children across Taiwan in April.

5.5 Arts and Cultural Activities

Fubon Securities continues to sponsor activities focused on music and Taiwanese cinema, including films such as "On The Train," which tells the history and stories of the construction of the South-Link Line, and the Taiwanese New Year film "Scamsgiving." In addition, the Company promotes quality arts and cultural education by sponsoring various classical music performances and productions by the Paper Windmill Theatre. In 2023, sponsored 13 projects, total sponsorships amount to nearly 2 million NTD.

5.6 Sports Sponsorship

In sports, both domestically and internationally, the Company has long-term sponsorships for a number of Taiwanese athletes. It helps them gain international exposure and encourages Taiwan's promising talents to take on the world stage. We also sponsor various sports events, including marathons, baseball, basketball, and golf, as well as youth baseball teams in schools, nurturing potential athletes and continuously injecting positive energy into Taiwan's sports scene. In 2023, sponsored 16 projects, total sponsorships amount to over 35 million NTD.