Message from the Chairman

2022 is a momentous year for Cathay FHC, marking our 60th anniversary. I would like to express my gratitude to all the employees, clients, shareholders, as well as all our stakeholders, for giving us your continued support and trust so that we may grow and flourish. The global landscape is becoming increasingly complex and competitive by the day. It is for this precise reason that we are making the decision to take up the mantle, bravely exploring greater possibilities for future development. In the spirit of "you are braver than you think," we are dealing with global changes and finding new solutions with a bold and intrepid outlook combined with innovation and an open mind. As Taiwan's largest institutional investor, we are diligently fulfilling our responsibility as a pioneer of sustainability - honing in on our strategy to enhance the three sustainability focus areas of climate, health, and empowerment. For each, we have designed strategic roadmaps and set goals for implementation. We will continue to enhance the sustainable services and products we offer, increase communication with stakeholders, and make full use of our core financial influence to create a better, more sustainable future where all can prosper.

Climate

Climate change is bringing us some tough challenges. We must now contend with issues such as adverse climate conditions, dwindling resources, declining biodiversity, and maintaining food security. And our every move will have an impact on the survival of our future generations. As the world moves toward sustainable development, Cathay is exerting our financial influence and capital to work with stakeholders in making the transition to a low-carbon economy and a net zero society. In April 2022, Cathay FHC became Taiwan's first financial company to join RE100, pledging 100% use of renewable energy at all of our business locations in Taiwan by 2023 and to achieve net zero emissions at all our global business locations by 2050. In September, the Science Based Targets initiative (SBTi) approved Cathay FHC's goals for reducing carbon within its operations and financial assets. Cathay FHC also led all its subsidiaries to join the government's Coalition of Movers and Shakers on Sustainable Finance initiative, pledging our help in facilitating Taiwan's transition. Cathay FHC was also invited to join the World Climate Summit (COP 27) for the first time in 2022, where we gave a keynote speech on sustainable finance. We demonstrated our commitment to aligning with international standards, and we shared our experience and dedication to the march towards net zero emissions. The path to net zero emissions is by no means an easy one. Cathay FHC invited cross-disciplinary and cross-industry stakeholders to the Cathay Sustainable Finance and Climate Change Summit, so that together, we can take action against climate change and fulfill our commitment to net zero emission goals.

Health

Taiwan is on the cusp of becoming a super-aged society. In the face of demographic changes such as an aging society and declining birth rates, Cathay FHC hopes to exert our influence as one of the largest financial institutions in Taiwan to expand the scope of our health promotion policy from individuals to households - furnishing a healthier and more wholesome lifestyle for the people of Taiwan. To promote health, Cathay Life has been actively raising public awareness of the importance of insurance and working to extend coverage to preventative health measures. Also, Cathay Life has introduced updates to the FitBack app, spillover-effect insurance, and geriatric health services. We are dedicated to integrating technology with our core financial services to build an ecosystem of health and encouraging the public to incorporate health management into their daily routines. Meanwhile, Cathay offers insurance, banking, and asset management services. We aim to enhance client experience with digital finance services through core competencies in financial products and services. This will raise client awareness of financial protection and security and make financial services more accessible and convenient. Cathay is improving public financial literacy through education and elevating the financial health of our clients through inclusive finance.

Empowerment

We encourage our employees to keep an open mind and never stop learning, to bravely jump outside of the box and forge ahead with a positive attitude. We also encourage them to be practical and have foresight, so that they may adapt to challenges by taking preemptive measures and ensure that Cathay may still operate sustainably in an increasingly complex environment. Here at Cathay, we firmly believe that talent is indispensable for our sustainable operations. By incorporating technology and implementing the digital transition, we are laying down a more nimble and flexible foundation for our corporate culture and create value from being a brand that is trustworthy. Apart from that, Cathay's vision is to build a society of inclusion and equality. We are dedicated to empowering youth and students, and we support gender equality. We also help the underprivileged and are working to eradicate social inequalities. By passing on a mindset of sustainability to our future generation, Cathay hopes to forge more positive cycles for society. In 2022, Cathay FHC held the TWCAE Youth Forum for the third consecutive year to empower youth with climate knowledge. We encourage them to exercise their creativity and galvanize others to speak up for the environment. Also, Cathay tapped into its core financial competencies to hold Taiwan's first Impact Investment Campus Roadshow - inspiring youths to elevate their understanding of themselves through knowledge and fostering seeds with the potential to spread sustainability to others in the future.

Cathay has been going strong for 60 years. We are taking a good look at where we stand and where we want to be in the future, and we are breaking with the status quo to embrace future challenges and opportunities. Our six decades of experience will serve as the capital and courage upon which we shall venture into the next phase of our journey. Cathay shall maintain our foresight and ambition and hone in on sustainable strategies to welcome our next sixty years.