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	2025 Key Performance	Key Points of 2026 Short-Term Goals	Key Points of 2027-2028 Mid-Term Goals	Key Points of 2029-2031 Long-Term Goals
Strengthening Board Functions	• Established "Implementation Guidelines for Responsibility Maps and Accountability System" to enhance its responsibility-based governance framework.	• Conduct external performance evaluations of the Board to continuously enhance the effectiveness of the Board and its functional committees.	• Continue to strengthen the functions of the Board and its committees, further optimizing corporate governance indicators for the Sustainable Finance Evaluation.	• Continuously refine and strengthen the corporate governance system.
Enhancing Information Disclosure Transparency	• Launched a project for KGI Life to align with IFRS S1 and S2. • Executed a climate governance optimization project focused on three key pillars: the Reference Guidelines for the Recognition of Sustainable Economic Activities, TCFD, and TNFD.	• Implement the IFRS S1/S2 sustainability financial disclosure framework, with the first draft report expected to be completed.	• Formally publish sustainability-related financial information in accordance with the "IFRS Sustainability Disclosure Standards" framework.	• Align with regulatory policies to continuously improve the quality of public information disclosure.
Establishing an AI Management System and Strengthening Information Security	• Implemented AI risk assessment and compliance procedures for new AI applications, including AI review and risk evaluation. • Established a SOAR platform for automated information security responses.	• Establish an AI governance system and enhance employees' AI literacy. • Implement an automated process for handling information security incidents, achieving a 100% resolution rate within one day. • Confirm and initiate projects for the implementation of a zero trust architecture (ZTA).	• Strengthen the evaluation and monitoring of AI suppliers. • Maintain the automated information security incident response process, ensuring a 100% resolution rate within one day. • Implement ZTA in high-risk, low-impact areas to achieve Level III maturity.	• Plan the adoption of an AI management system (ISO 42001) to align with international AI management standards and enhance the quality of internal controls. • Enhance the automated information security incident response process to achieve a 100% resolution rate within four hours. • Expand the implementation scope of the ZTA.

Sustainability Goals	2025 Key Performance	Key Points of 2026 Short-Term Goals	Key Points of 2027-2028 Mid-Term Goals	Key Points of 2029-2031 Long-Term Goals
Implementing Engagement with Investees	• 32.22% of the investment value in its listed stock and bond portfolio is committed to SBT targets.	• Increase the portion of its 2026 listed stock and bond portfolio with SBT targets to 36.3% of investment value.	• Increase the portion of its 2027 listed stock and bond portfolio with SBT targets to 40% of investment value.	• Increase the portion of its 2029 listed stock and bond portfolio with SBT targets to 49.7% of investment value.
Reducing High-Carbon Industry Exposure and Implementing SBT-based Portfolio Decarbonization	• Investment ratio of high-carbon industries was reduced to 11.55%, well below the 24.5% monitoring threshold. • The carbon intensity (GHG emissions per MWh) of its power generation project investments and financing decreased by 40.3% from the baseline year.	• Adjust the high-carbon industry exposure monitoring threshold from 24.5% to 23%. • Reduce the carbon intensity of power generation project investments and financing by 37.5% from the baseline year.	• Conduct annual reviews of the investment and financing ratio in high-carbon industries and lower the monitoring threshold by 0.5%–1.5% each year. • Reduce the carbon intensity of power generation project investments and financing by 46.2% from the baseline year.	• Conduct annual reviews of the investment and financing ratio in high-carbon industries and lower the monitoring threshold by 0.5%–1.5% each year. • Reduce the carbon intensity of power generation project investments and financing by 63% from the baseline year.
Fostering Green and Sustainable Transformation	• Green and sustainable investment portfolio grew by 44.4% compared to 2022. • The annual growth rate of electronic policy adoption reached 8.4%.	• Achieve a 20% growth in its green and sustainable investment portfolio compared to 2022. • Increase the annual electronic policy adoption rate by 2% and the mobile claims usage rate by 3%.	• Achieve a 30% growth in its green and sustainable investment portfolio compared to 2022. • Increase the annual electronic policy adoption rate by 4% and the mobile claims usage rate by 5%. • Stop providing paper claim application forms.	• Achieve a 45% growth in its green and sustainable investment portfolio compared to 2022. • Increase the annual electronic policy adoption rate by 6% and the mobile claims usage rate by 7%.

Sustainability Goals	2025 Key Performance	Key Points of 2026 Short-Term Goals	Key Points of 2027-2028 Mid-Term Goals	Key Points of 2029-2031 Long-Term Goals
Customer Service and Financial Inclusion	• Achieved 215% of its microinsurance premium income target, ranking first in the industry. • Customer service counters successfully prevented 12 fraud attempts, safeguarding a total of NT$19.934 million. • Achieved an NPS score of 78. • Achieved a 98.48% case resolution rate for cases filed with the Financial Ombudsman Institution (FOI).	• Expand microinsurance partnerships to seven major counties and cities, adding indigenous communities as a covered group. • Achieve an NPS score of 75 or higher. • Maintain an FOI case resolution rate of ≥90%.	• Introduce five new customer service measures (e.g., anti-fraud, dementia-friendly, support for disadvantaged and disabled individuals). • Achieve an NPS score of 76 or higher. • Maintain an FOI case resolution rate of ≥90%.	• Introduce five new customer service measures (e.g., anti-fraud, dementia-friendly, support for disadvantaged and disabled individuals). • Achieve an NPS score of 77 or higher. • Maintain an FOI case resolution rate of ≥90%.
Developing Digital Finance	• Launched 29 enhancements or new services for the iLife App/Web. • Deployed a voice-bot for announcements to elderly customers.	• Launch ≥12 enhancements or new services for the iLife App/Web. • Implement AI for medical chart image recognition, policy health check recommendations, and a 360-degree customer view.	• Launch ≥15 enhancements or new services for the iLife App/Web. • Introduce diversified digital identity verification for customers.	• Launch ≥15 enhancements or new services for the iLife App/Web.
Fostering a Volunteer Culture and Supporting Disadvantaged Communities	• Conducted 66 financial and anti-fraud education sessions, serving 5,704 individuals from vulnerable groups, including the elderly, disabled, indigenous people, and new immigrants. • KGI Life's community outreach activities benefited 97,663 people.	• Achieve an average of seven volunteer hours per employee. • Collaborate with nine schools and regional revitalization teams to promote localized financial education.	• Achieve an average of eight volunteer hours per employee. • Increase the number of people benefiting from its community activities by 5% annually.	• Achieve an average of nine volunteer hours per employee. • Increase the number of people benefiting from its community activities by 5% annually.

Sustainability Goals	2025 Key Performance	Key Points of 2026 Short-Term Goals	Key Points of 2027-2028 Mid-Term Goals	Key Points of 2029-2031 Long-Term Goals
Managing Carbon Reduction in Operations	• Achieved 118% of its operational carbon reduction target, with progress aligned with its SBT pathway.	• Continue to follow SBT for operational carbon reduction, aiming for an emissions target of 5,487 metric tons by 2026.	• Implement carbon reduction measures across all offices and agencies, with a 2028 operational carbon emissions target of 4,758 metric tons. • Ensure over 40% of lighting fixtures in all workplaces are LED panel lights by 2028.	• Continue carbon reduction efforts across all offices and agencies, with a 2031 operational carbon emissions target of 3,695 metric tons. • Ensure over 80% of lighting fixtures in all workplaces are LED panel lights by 2031.
Promoting Environmental Sustainability	• Implemented the Research Project on the Full-Cycle Utilization of Food Waste from Employee Cafeterias, recycling approximately 5,580 kg of food waste and 1,996 liters of waste oil.	• Continue the Research Project on the Full-Cycle Utilization of Food Waste from Employee Cafeterias, purchasing 100 kg of off-spec produce and vegetables grown using Black Soldier Fly organic fertilizer annually. • Encourage suppliers to join social innovation organizations, with procurement from these organizations reaching NT$14 million.	• Continue the Research Project on the Full-Cycle Utilization of Food Waste from Employee Cafeterias, purchasing 100 kg of off-spec produce and vegetables grown using Black Soldier Fly organic fertilizer annually. • Encourage suppliers to join social innovation organizations, with procurement from these organizations reaching NT$16 million.	• Continue the Research Project on the Full-Cycle Utilization of Food Waste from Employee Cafeterias, purchasing 100 kg of off-spec produce and vegetables grown using Black Soldier Fly organic fertilizer annually. • Encourage suppliers to join social innovation organizations, with procurement from these organizations reaching NT$18 million.