The 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. Cathay expect to become a backup for society and to create long-term value through the core abilities of financing
and risk prevention.
and risk prevention.
Sustainable Impact
In pursuing corporate sustainability, Cathay FHC abides by the spirit of "What if We Could," aspiring to leverage our influence in the financial industry and drive positive change across sectors. This commitment aims to enhance societal well-being while mitigating environmental footprints and human rights risks, thereby creating long-term positive value for stakeholders. Since 2018, Cathay FHC has collaborated with academic institutions to develop the Profits and Losses of Five Major Capitals (5C P&L) assessment framework, which is based on impact valuation methodologies and integrates financial profit and loss (P&L) with Triple Bottom Line (TBL) management concepts. It evaluates the external impacts of value chain activities on the economy, environment, and human rights through a sustainability impact pathway driven by causal relationships, translating these impacts into monetized social benefits (positive) and costs (negative).
Milestones
2011
Established Cathay FHC Corporate Social Responsibility (CSR) Committee with five task forces
2012
- Set forth the Corporate Social Responsibility Code of Practice
- Published the first CSR Report
- Joined the Carbon Disclosure Project (CDP)
2013
- Established the CSR rewarding mechanism
- Corporate sustainability training incorporated into new employee orientation
- Responded to ESG messages from institutional investors
2014
- The CSR Committee was reestablished as the Corporate Sustainability (CS) Committee under the board and supervised by an independent director
- Established the Responsible Investment Working Group
2015
- Responded to and was selected for the Dow Jones Sustainability Index (DJSI)
- Became Taiwan's first signatory to the Equator Principles (EPs)
- Acquired Conning, Inc., a PRI signatory
2016
- Cathay Life pledges to comply with the UN's Principles for Sustainable Insurance (PSI)
- Convened a strategy advancement meeting with the six task forces and defined the four focus areas of sustainable development
- Incorporated Social Return on Investment (SROI)
- Became a signatory to Taiwan's Stewardship Principles for Institutional Investors
2017
- Cathay Century pledges to comply with the UN's Principles for Sustainable Insurance (PSI)
- Dual secretaries instituted for the six task forces
- Investigated the causality between sustainability and business performance
2018
- CUB pledges to comply with the UN's Principles for Responsible Banking (PRB)
- Selected for the DJSI World Index
- Cathay Life releases the first Stewardship Report in Taiwan
- Audited all indexes within the CSR Report
2019
- Established the Corporate Sustainability Division
- Updated the 2016 four focus areas of sustainable development
- Began to follow the TCFD in 2017. The TCFD task force, led by the Chief Risk Officer, began to monitor climate-related risks in 2018.
2020
- Established the Corporate Sustainability Office under the Cathay FHC President's management
- Reexamined the four focus areas and established "Climate, Health, and Empowerment" as the three new focus areas for strategic sustainable development
- Investigated the link between sustainability actions and brand perception
2021
- Tied Cathay FHC President's remuneration package to sustainability performance
- Pledged to comply with RE100. Aiming to achieve 100% use of renewable energy at our Taiwan facilities by 2030 and net-zero carbon emissions by 2050.
- Releases Cathay's first ESG Integration Report
2022
- CS Committee finalizes sustainability blueprint detailing the strategy and implementation of the three focus areas
- Tied remuneration packages for presidents and senior executives to sustainability performance
- Emission reduction targets officially verified by SBTi
- Releases Cathay's first TCFD Report
2023
- Cathay FHC, as a pioneer of sustainability, continues to hone in on our strategic ambitions and key development objectives through our strategic blueprint. We continue to monitor progress and refine the strategic blueprint and its implementation
- First financial institution in Taiwan invited to the UN Climate Change Conference (COP28) Blue Zone, organizing and contributing to important side events
- The only company in Taiwan to join the World Biodiversity Summit (WBS) during UN' s Climate Week NYC for two consecutive years
- First financial institution in Taiwan to speak about sustainable finance at the London Stock Exchange's Climate Investment Summit
- One of the five founding members of the FSC's Coalition of Movers and Shakers on Sustainable Finance; leads the Working Group for Capital and Statistics
2024
- Cathay FHC President Lee Chang-Ken was invited to speak at the London Stock Exchange's Climate Investment Summit for the second time, making Cathay the first Taiwanese financial institution to be featured at the LSE summit twice.
- Cathay FHC Chief In vestment Officer Sophia Cheng was invited to speak at the World Biodiversity Summit (WBS), where she represented Taiwan as the sole delegate. She was also invited by the Ceres Valuing Water Finance Initiative to share insights on “Drops of Change: Building Climate Resilience through Water Stewardship.”
- Cathay Life's Wuri Building in Taichung became the first officially certified Net Zero Building in Taiwan. It received a Level 1+ rating for building performance and was a warded the Diamond-level Green Building Label.
2025
- Established the board-level Corporate Sustainability Committee.
Corporate Sustainability Principles and Corporate
Governance Best Practice Principles
After the establishment, the Cathay FHC Corporate Sustainability Committee then formulated “Cathay FHC Corporate Sustainability Principles” and “Cathay Financial Holdings Corporate Governance Best Practice Principles” with reference to “Corporate Social Responsibility Best Practice Principles for TWSE / GTSM Listed Companies” to allow colleagues to follow and manage practical behaviors on the economic, environmental and social aspects. Moreover, we also pay attention to the development of domestic and international corporate social responsibility system and corporate environmental changes, according to the review to improve the company’s corporate social responsibility system and norms.
Cathay Financial Holdings Sustainability Governance Framework
To align with the company's ESG policy, Cathay FHC established the Corporate Social Responsibility Committee in 2011, which was renamed the Corporate Sustainability (CS) Committee in 2014. This committee serves as the highest-level decision-making unit for sustainability development within the company and is directly under the Board of Directors(BoD). It is supervised by an independent director and chaired by the company’s president (who is also a board member). Committee members consist of the presidents of the company’s subsidiaries, and its members are senior executives from various departments across the organization. Together, they formulate and implement the group's sustainability development plans and conduct periodic reviews. Committee meetings are held quarterly, during which the independent director works with committee members to guide the company’s sustainability efforts.
The company has established a Corporate Sustainability Office under the president’s supervision, dedicated to promoting sustainability within the group. The office identifies stakeholders relevant to the company's operations, assesses their sustainability concerns, and evaluates the impact and risks of these issues on the company’s core business. Using the principle of materiality, an annual analysis of material issues is conducted, based on which short-, medium-, and long-term goals are set.
The company leverages its core financial and risk management functions to focus on 10 Sustainable Development Goals (SDGs). It has formulated the Cathay Sustainability Strategy under three pillars—Climate, Health, and Empowerment—along with strategic objectives, action plans, and effectiveness reviews. The Corporate Sustainability Office also acts as the secretariat of the Corporate Sustainability Committee, reporting resolutions, progress on sustainability strategies, implementation of major projects, and achievement of sustainability goals to the BoD every six months.
In 2024, reports to the Board included updates on sustainability policy reviews and revisions, stakeholder engagement and communication outcomes, progress on the three sustainability strategy pillars, advancement in the Science-Based Targets initiative (SBTi), the zero-carbon operations transformation plan, and the implementation of sustainability-related tasks.
To enhance corporate sustainability governance and improve the effectiveness of the BoD, the company established a Corporate Sustainability Committee as a functional committee on January 1, 2025. This committee consists of at least three directors appointed by the Board, including at least one independent director. At least one member must possess relevant management capabilities or experience. Following the establishment of the functional committee, the existing Corporate Sustainability Committee will continue to convene under its supervision and be renamed the ESG Strategy Committee.
To strengthen the Group's ESG governance framework, Cathay FHC established the position of Chief Sustainability Officer (CSO) in August 2025. The role is concurrently assumed by Mr. Chang-Ken Lee, President of Cathay FHC, who also serves as a member of the Corporate Sustainability Committee and Chair of the ESG Strategy Committee. The CSO is responsible for formulating the Group's sustainability strategy and goals, and overseeing the implementation of sustainability initiatives.
The BoD regularly monitors the progress of sustainability initiatives, with independent directors involved in supervision to support adjustments and improvements by the Management. To ensure the Board and functional committees fulfill their responsibilities in governance, the company has established Regulations Governing the Evaluation of the Board and Functional Committee’s Performance. The evaluation incorporates sustainability indicators such as compliance, corporate governance, risk management, and corporate sustainability and social responsibility. In 2023, the internal performance evaluation of the company’s Board of Directors and functional committees resulted in a rating of “Exceeds Expectations.”
The company has established a Corporate Sustainability Office under the president’s supervision, dedicated to promoting sustainability within the group. The office identifies stakeholders relevant to the company's operations, assesses their sustainability concerns, and evaluates the impact and risks of these issues on the company’s core business. Using the principle of materiality, an annual analysis of material issues is conducted, based on which short-, medium-, and long-term goals are set.
The company leverages its core financial and risk management functions to focus on 10 Sustainable Development Goals (SDGs). It has formulated the Cathay Sustainability Strategy under three pillars—Climate, Health, and Empowerment—along with strategic objectives, action plans, and effectiveness reviews. The Corporate Sustainability Office also acts as the secretariat of the Corporate Sustainability Committee, reporting resolutions, progress on sustainability strategies, implementation of major projects, and achievement of sustainability goals to the BoD every six months.
In 2024, reports to the Board included updates on sustainability policy reviews and revisions, stakeholder engagement and communication outcomes, progress on the three sustainability strategy pillars, advancement in the Science-Based Targets initiative (SBTi), the zero-carbon operations transformation plan, and the implementation of sustainability-related tasks.
To enhance corporate sustainability governance and improve the effectiveness of the BoD, the company established a Corporate Sustainability Committee as a functional committee on January 1, 2025. This committee consists of at least three directors appointed by the Board, including at least one independent director. At least one member must possess relevant management capabilities or experience. Following the establishment of the functional committee, the existing Corporate Sustainability Committee will continue to convene under its supervision and be renamed the ESG Strategy Committee.
To strengthen the Group's ESG governance framework, Cathay FHC established the position of Chief Sustainability Officer (CSO) in August 2025. The role is concurrently assumed by Mr. Chang-Ken Lee, President of Cathay FHC, who also serves as a member of the Corporate Sustainability Committee and Chair of the ESG Strategy Committee. The CSO is responsible for formulating the Group's sustainability strategy and goals, and overseeing the implementation of sustainability initiatives.
The BoD regularly monitors the progress of sustainability initiatives, with independent directors involved in supervision to support adjustments and improvements by the Management. To ensure the Board and functional committees fulfill their responsibilities in governance, the company has established Regulations Governing the Evaluation of the Board and Functional Committee’s Performance. The evaluation incorporates sustainability indicators such as compliance, corporate governance, risk management, and corporate sustainability and social responsibility. In 2023, the internal performance evaluation of the company’s Board of Directors and functional committees resulted in a rating of “Exceeds Expectations.”
