ESG CommitteeESG Committee
In order to promote and implement the corporate social responsibility policy and sustainable development, HFC has established an ESG committee in accordance with Article 27 of the “Corporate Governance Best Practice Principles of Hotai Finance Co., Ltd.” and the “Sustainable Development Best Practice Principles of Hotai Finance Co., Ltd.” The ESG Committee is under the board of directors and consists of five members, with the chairperson of the board of directors serving as the convener, and the members include the president, two vice presidents, and one assistant vice president. Various functional teams have been set up under the committee, including the Environmental Sustainability team, Corporate Governance team, and Social Participation team, to handle the issues of concerns to different stakeholders and promote the planned work with the relevant departments of the Company, so as to carry out the planning, promotion and execution of related business.In order to promote and implement the corporate social responsibility policy and sustainable development, HFC has established an ESG committee in accordance with Article 27 of the “Corporate Governance Best Practice Principles of Hotai Finance Co., Ltd.” and the “Sustainable Development Best Practice Principles of Hotai Finance Co., Ltd.” The ESG Committee is under the board of directors and consists of five members, with the chairperson of the board of directors serving as the convener, and the members include the president, two vice presidents, and one assistant vice president. Various functional teams have been set up under the committee, including the Environmental Sustainability team, Corporate Governance team, and Social Participation team, to handle the issues of concerns to different stakeholders and promote the planned work with the relevant departments of the Company, so as to carry out the planning, promotion and execution of related business.
The committee meets at least twice a year. 2 meetings were held in 2023 to review the progress and achievements of the 2023 plan and to identify the direction of the 2024 plan. The in-person attendance rate of the committee members reached 100%; Moreover, the committee reported to the board of directors on the status of the implementation of 2023 ESG management on December 14, 2023. In addition to the summarizing the results of environmental sustainability, social participation, and corporate governance projects, for climate risk management topics stated in the report, the greenhouse gas inventory and the promotion of solar energy business are also reported as projects simultaneously, which shows how important they are to the realization of net-zero emissions by HFC.The committee meets at least twice a year. 2 meetings were held in 2023 to review the progress and achievements of the 2023 plan and to identify the direction of the 2024 plan. The in-person attendance rate of the committee members reached 100%; Moreover, the committee reported to the board of directors on the status of the implementation of 2023 ESG management on December 14, 2023. In addition to the summarizing the results of environmental sustainability, social participation, and corporate governance projects, for climate risk management topics stated in the report, the greenhouse gas inventory and the promotion of solar energy business are also reported as projects simultaneously, which shows how important they are to the realization of net-zero emissions by HFC.
Material Topic Analysis ProcessMaterial Topic Analysis Process
| Understand the context of organizational sustainability | Step 1: Identifying stakeholders In order to effectively identify key stakeholders, after discussion with members of the ESG team and with reference to the experience of benchmark companies and industries, HFC has followed the AA1000 Stakeholder Engagement Standard to assess the impact of different stakeholders on the Company and identify eight categories of stakeholders. | 8 Categories of stakeholders |
Step 2: Identifying impact factors HFC collects relevant events that occurred during the year, and at the same time, makes reference to GRI standards, SASB, ISO 26000:2010 social responsibility guidelines, international standards, international ratings (including DJSI, MSCI, etc.), industry topics, joint SDGs, domestic and foreign industry topics, and global trend topics. As such, 65 impact factors were identified by identifying corporate impact items and their actual/potential positive/negative impacts on the Company | 65 impact factors Risk identification Legal facts Trend and initiative Expert consultation | |
| Identify actual and potential impacts | Step 3: Integrating corporate impact factors into sustainability topics After discussions between the consulting team and the group of ESG committee, the impact factors were consolidated into 16 annual sustainability topics based on themes, and the identified sustainability topics were analyzed qualitatively and subsequently analyzed for significance in order to set the basis for the management guidelines for the material topics. | 16 sustainability topics 3 topics in E aspect 5 topics in S aspect 8 topics in G aspect |
Step 4: Analysis and ranking of material topics HFC conducts internal and external stakeholder surveys on eight identified categories of stakeholders through questionnaires, and invites corporate executives to rank and rate the importance to them regarding sustainability topics. Based on the two dimensions of "the level of stakeholder concern" and "the level of impact of company operations on sustainability topics", three levels of intensity were analyzed, namely, high, medium, and low, to identify their importance. | 405 questionnaires 5 questionnaires for the seniors 400 questionnaires to stakeholders | |
| Evaluate the significance of impacts | Step 5: Topic impact assessment The annual material topics of HFC were discussed through the group of the ESG committee and the team of expert consultants. For high-level and medium-level material topics, they try to gain a deeper understanding of the significance and likelihood of the topics' impacts. 7 material topics are identified through the GRI 3 and Dual Materiality Analysis process. | 7 material topics 1 topic in E aspect 2 topics in S aspect 4 topics in G aspect |
| Report to disclose the topics of significant impact | Step 6: Topic response and disclosure Topic significance was measured by a comprehensive assessment of the results of the analysis of the material topics conducted by the group of ESG Committee of HFC and the team of expert consultants on a topic-by-topic basis. They discuss the likelihood of future occurrences of the topical incidents, and determine whether a medium or high level of topics should be confirmed to disclose the report. Each material topic is assessed by each responsible unit for completeness and impact in terms of scope, boundaries, and the period of collection and reporting, in order to meet and respond to stakeholders' concerns about key information and performance. The report has also been prepared in accordance with the principles of completeness, responsiveness and stakeholder inclusiveness. | |
Material topic analysis matrixMaterial topic analysis matrix
After identifying 16 sustainability topics that stakeholders are concerned about, and through discussions between each unit and the group of ESG Committee, the report is based on the highly impactful material topics of the seven most significant topics, and the management methods and performance results are fully disclosed in the report.After identifying 16 sustainability topics that stakeholders are concerned about, and through discussions between each unit and the group of ESG Committee, the report is based on the highly impactful material topics of the seven most significant topics, and the management methods and performance results are fully disclosed in the report.
Material topics and responsesMaterial topics and responses
Material topic managementMaterial topic management
| Material topics | Policy commitment | Management actions | 2023 Action performance tracking | Future goals |
| Corporate governance | Formulate the Corporate Governance Best Practice Principles and establish a comprehensive governance mechanism | Enhancing information transparency | Significant message announcement has been duly made in accordance with the law | To comply with the law on disclosure |
| Implement board performance evaluation | Completed the external performance evaluation of the board of directors | To regularly evaluate the performance of the board of directors | ||
| Participation in corporate governance evaluation | The results of the evaluation were the top 6% to 20% | To take part in the corporate governance | ||
| Operation performance | Creating value and contributing to the society, maximizing profits for shareholders and creating an environment employees to grow. | Regular disclosure of operating results | We regularly disclosed financial report information and held earnings call every quarter and updated the internal management performance reports every month | To maintain growth momentum through continuous business diversification and multi-faceted operations |
| Optimization of the governance of af liated companies | We assisted our affiliates in implementing a standardized reporting | |||
| Annual key projects and policy planning | We conducted performance reviews on a half-yearly basis and planned ahead for the next year's key indicators and projects | |||
| Ethical management | Formulate the "Ethical Corporate Management Best Practice Principles," "Ethical Corporate Management Operating Procedures and Behavioral Guidelines," and "Ethical Code of Conduct" and other internal regulations. Establish and improve the internal control system, | Formulate the annual audit plans in accordance with the Regulations Governing Establishment of Internal Control Systems by Public Companies, and implement them accordingly | We have actually implemented and completed 49 audit plans, including derivatives trading, cyber security inspection, etc., and completed the rectification of relevant deficiencies | To complete annual audit plans and implement them accordingly |
| Continuing education for internal auditors of public companies | Internal audit personnel shall attend 12 hours of professional training courses on auditing related services organized by the designated professional training institutions, totaling 48 hours | In response to the updates of the legal compliance and internal control system, the Company will continue to dispatch employees for training every year | ||
| Information security management | Pass the ISO 27001:2013 information security management system verification. Establish the information security management system | Ensuring the effectiveness of ISO 27001 | We passed external audits and obtained valid licenses | To complete the version transition of ISO 27001:2022 in 2024. |
| Customer rights and services | Continue to promote digitalization and improve service quality | OJT training | Online course/ attendance rate: 100% | Online course/attendance rate: 100%. To implement standard customer service replies |
| Personal date protection | 100% completed | 100% completed | ||
| Digital communication channels | Utilization rate of digital channels: 42% | To optimize LINE text customer service and automated replies | ||
| Talent development and bene ts | Competitive remuneration, provision of diversified benefits, and developing on-the-job training, external training, and self-development training | Employee performance evaluation | Annual assessment―100% | Annual assessment―100% |
| To Improve the effectiveness of employee training | To properly take stock of the functional gaps prior to training. The average training hours per employee is 14.60 hours | To optimize the talent development map | ||
| Striving for the recognition of national talent cultivation awards. | Obtained TTQS Gold Certification | To optimize and refine the TTQS; to seek recognition from the National Talent Development Awards. | ||
| Operating environment management | Respond to the 2050 Net Zero Emissions target by establishing an Environmental Management Committee and take operating environment management into practice | Replacement of company vehicles with non-pure fuel vehicles | The proportion of purely electric and gasoline-electric hybrid vehicles reached 30% | To continue to replace fuel-powered company cars with electric and gas-electric hybrid cars by up to 100% |
| Implement energy-saving actions and enhance energy ef ciency | The headquarters and Xinhu 1st road office implement half-hour light switch-off during lunch breaks | To continue to promote the half-hour light switch-off during lunch break to all locations in Taiwan | ||
| More than 90% of LED lights were used for lighting at various locations | To achieve 100% LED lighting in all locations in Taiwan |
The sustainable management strategy, results and future goals of HFC in 2023 were submitted to the board of directors on December 14, 2023.The sustainable management strategy, results and future goals of HFC in 2023 were submitted to the board of directors on December 14, 2023.
The results of material topics analysis in 2023 were submitted to the board of directors on January 24, 2024.The results of material topics analysis in 2023 were submitted to the board of directors on January 24, 2024.