Sustainability Strategy

Sustainability Strategy and Goal

We utilize our strengths and resources of our core business to align with the UN SDGs and have planned four sustainable development themes: "Corporate Governance, Sustainable Finance, Inclusive Finance, and Low Carbon Transition in response to global ESG trends.

Sustainability Goals	Implementation Status in 2023	Short-term Goals	Mid to Long-term Goals
Enhance Corporate Governance	• Unified meeting procedures and document formats for the Board of Directors and functional committees •The total number of education hours for the 23rd-term Board of Directors met regulatory requirements, and each person took at least 3 hours of elective courses related to sustainable development	• Improve the performance of the Board of Directors and functional committees • The number of educational training hours for directors complies with regulations; periodically conduct performance evaluations and submit director development plans	• Strengthen governance by the Board of Directors, and promote sustainability, integrity, and governance • Assist the parent company to continue improving its ranking in the Corporate Governance Evaluation and continue to be selected as a constituent stock of the DJSI Sustainability Index
Optimize Sustainable Supply Chain Management	• Continue to optimize sustainable supplier management and deeply embed the concept of sustainability in the industry value chain - Announced the Corporate Social Responsibility Commitment and added international conventions, such as the Universal Declaration of Human Rights - Began to use 3 suppliers that have committed to net zero emissions - Purchases from suppliers that have committed to net zero emissions reached NT$26.1 million, surpassing the goal of NT$10 million • Support the EPA's green office by engaging in green purchasing - The amount of green purchasing reached NT$19.27 million in 2023, reaching the standard of Taipei City Government Department of Environmental Protection - The amount of social innovation purchases reached NT$34.78 million, exceeding the target of NT$10 million	• Net Zero Emissions - Encourage 4 suppliers to commit to net zero emissions - Purchases from suppliers that commit to net zero emissions reach NT$12 million • Promotion of Sustainable Procurement - Support the environmental protection authority by continuing to engage in green purchasing and win at least one award - Encourage suppliers to join social innovation organizations and purchases from social innovation organizations reach NT$12 million	• Net Zero Emissions - Purchases from suppliers that commit to net zero emissions reach NT$15 million • Promotion of Sustainable Procurement - Support the EPA by continuing to engage in green purchasing - Encourage suppliers to join social innovation organizations and purchases from social innovation organizations reach NT$15 million

Sustainability Goals	Implementation Status in 2023	Short-term Goals	Mid to Long-term Goals
Sustainable Investment Development	• Completed the carbon inventory of 100% of the investment portfolio based on the PCAF methodology • Used the SBT method to compile the carbon inventory of the investment portfolio, and reduced carbon emissions of the investment portfolio by approximately 28% compared with the end of 2020 • The amount of green investments in 2023 was NT$34.17 billion, an 11-fold increase compared with 2020 • Investments in high carbon industries accounted for 18.1% of the overall investment position in 2023	• Maintain investments in high carbon industries under 26% • Compared with the end of 2020, increase the green investment position by 20% by the end of 2024	• Maintain investments in high carbon industries under 26% • Increase the green investment position by 40% compared with the end of 2020 by the end of 2028

Sustainability Goals	Implementation Status in 2023	Short-term Goals	Mid to Long-term Goals
Promotion of Inclusive Product Services	• Micro insurance premiums amounted to NT$14.39 million, ranking third in the industry • Ranked in the top 25% among insurance companies in the "Fair Customer Treatment Principles" evaluation for the fifth consecutive year • Operated and managed points of contact with bottom up NPS YOY growth of 44% • The Experience Engineer Team proposed 36 improvement suggestions based on customer needs, 28 of which have been completed or have been scheduled. • The percentage of properly handled Financial Ombudsman Institution (FOI) cases was 97.85%, higher than the target (90%)	• Maintain micro insurance premium income as top 3 of the industry • The percentage of properly handled Financial Ombudsman Institution (FOI) cases reaches 90% and above • Place 2nd overall in top down NPS	• Maintain micro insurance premium income as top 3 of the industry • The percentage properly handled by The Financial Ombudsman Institution (FOI) cases reaches 92% and above • Place 1st overall in top down NPS
Promote Social Participation and Support Regional Revitalization and Development	• Co-organized 22 "Fraud Prevention and Financial Knowledge Promotion Lectures" with local community development associations and social welfare organizations, attracting participation from approximately 840 financially disadvantaged people. • Match the core competencies of life insurance companies with the needs of various parties, and help underprivileged groups become self-sufficient - Beneficiaries of charity events reached 20,000 - Office staff volunteer service hours reached 49,816 hours	• The number of volunteer activity partners and the number of events held increase by 10% compared with the previous year • Beneficiaries of charity events reached 20,000 • Co-organize at least 16 "Fraud Prevention and Financial Knowledge Promotion Lectures" with local community development associations and social welfare organizations for 2024 • Collaborate with 2 universities in priority areas for regional revitalization, and implement financial education and internship programs • Jointly participate in 2 regional revitalization volunteer events with policyholders through life insurance consultants throughout Taiwan	• Gradually increase the number of volunteer service hours, and increase the number of partners and the number of events held by 10% compared with the previous year • Beneficiaries of charity events increase by 5% each year • Co-organize at least 36 "Fraud Prevention and Financial Knowledge Promotion Lectures" with local community development associations and social welfare organizations in 2027-2028 • Continue to promote financial education in priority areas for regional revitalization • Expand policyholder volunteer activities to increase participation
Digital Finance Innovation Development	• Online self-service utilization rate has increased to 30% • Obtained app accessibility certification	• Optimize and simplify the online membership application process for customers, accelerate online insurance enrollment, and improve customer experience • Collaborate with KGI Bank to provide customer options through online banking to simplify the identity verification process • Place 3rd in digital NPS • Reach 35% online service utilization rate	• Provide policyholders with simpler and more convenient services through different technologies, such as AI and virtual identity, in coordination with the lifting of regulatory restrictions and the development of new technologies • Place 1st in digital NPS • Reach 40% online service utilization rate
Continue Talent Cultivation	• Expanded the development of supervisors' leadership, and developed leadership competencies for sustainability transition, with training hours growing 123% to 3,619 hours • Implemented the annual internship program, with the total number of people increasing 9.3% to 35	• Establish a personnel decision-making mechanism based on corporate values • Strengthen employees' understanding of the importance of human rights through training courses, with training completion rate of 100%	• Establish a culture based on corporate values and become a diverse and inclusive organization in all aspects • Prepare key positions and increase the depth of the succession bench

Sustainability Goals	Implementation Status in 2023	Short-term Goals	Mid to Long-term Goals
Improve Risk Management Mechanisms	• Established "Climate-related Risk Management Guidelines" • Assessed incorporating climate-related physical risks into the real estate investment process • Completed scenario analysis for climate-related physical risks and transition risks	• Include new real estate investment targets in the assessment of climate-related physical risks, with the goal of reducing high-risk cases to less than 10% after adjustments • Implement“IFRS S1/S2 climate-related disclosure requirements”	• Regularly review the safety and potential impact of climate risks on investment property, strengthen flood prevention facilities/ backup measures or property insurance coverage, with the goal of reducing high-risk cases to less than 3% after adjustment • Release climate-related information in accordance with "IFRS S1/ S2 climate-related disclosure requirements"
Enhance Green Operations and Carbon Management	• Expand the scope of ISO 14064-1 inventory to cover 100% of KGI Life's agent offices • Reduce carbon emissions from operations of office staff by 130% • The HQ building used approximately 1,006,000 kWh of green electricity, an achievement rate of 143% • Completed evaluation of water conservation plans at office staff and agent workplaces, and 43% of equipment have the water conservation mark • Obtained the eco-friendly restaurant certification from the Ministry of Environment	• HQ building becomes a carbon neutral green building by 2024 • Reduce carbon emissions of office staff and agents, with the carbon emissions target set at 5,620 tons for domestic operations by 2024 • <50% of equipment used in office staff and agent workplaces have the water conservation mark	• Continue to maintain the HQ building as a carbon neutral green building • Gradually increase the use of equipment with the water conservation mark in office staff and sales agent workplaces: 60% and above in 2025 and 70% and above in 2027
Transition to Low Carbon Products and Services	• Obtained the Carbon Label for insurance services from the Ministry of Environment	• Carry out insurance service carbon footprint reduction	• Evaluate and apply for the carbon reduction label from the Ministry of Environment based on insurance service carbon footprint reduction