As one of the leading financial institutions in Asia, CTBC Holding adopts a sustainability strategy guided by the three pillars of Sustainable Growth, Responsible Operations, and A Connected Society, and follows through on its "TRUST" commitment―an acronym we coined to emphasize the importance of corporate governance (Transparency), environmental sustainability (Responsibility), employee welfare (Understanding), customer service (Satisfaction), and community engagement (Together). And, in addition to proactively responding to the SDGs, we also promote the low-carbon economy and inclusive finance as well as implement sustainable operations through low-carbon transition and sustainability transformation.
Sustainable governance and management

In addition to following the Ethical Corporate Management Best Practice Principles, Sustainable Development Best Practice Principles, Corporate Governance Best Practice Principles, and Procedures for Ethical Management and Guidelines for Conduct, CTBC Holding has formulated a Sustainable Management Policy. Furthermore, the Company is committed to realizing the U.N. Sustainable Development Goals (SDGs) in order to maintain its business growth, protect stakeholders' interests, and support sustainable environmental and social development.

To these ends, CTBC Holding has adopted a world-class three-tier sustainability management structure. The first tier, namely the Corporate Sustainability Committee, acts as the highest supervisory unit. The second tier is the ESG Taskforce, composed of top management teams, charged with carrying out daily sustainability-related work. The third tier is the Corporate Sustainability Department, which is responsible for integrating the corporate sustainability strategies and action plans of the Company and its subsidiaries

2022 Communication with stakeholders and materiality analysis
Stakeholder communication

Using the AA1000 Stakeholder Engagement Standard, we have identified "customers," "investors," "government," "community," "suppliers," and "employees" as our six key stakeholder groups and established multiple transparent communication channels to gather, analyze, and communicate issues of concern to them. The aim of these efforts is to enable stakeholders to understand how CTBC Holding is implementing corporate sustainability.

The governance and implementation of stakeholder communication occurs across three management levels:

  • The results of the annual communication of material sustainability issues with stakeholders are reported by the Corporate Sustainability Department to the Corporate Sustainability Committee and the Board of Directors before the end of the respective year.
  • The ESG Taskforce incorporates stakeholder concerns into the annual sustainability plan and daily operations, conducting tracking and review processes.
  • The communication and engagement activities during day-to-day operations are summarized in the annual Sustainability Report, which is then reported to the Corporate Sustainability Committee and the Board of Directors in the following year. The Board of Directors and the Corporate Sustainability Committee oversee the effectiveness of communication and engagement efforts.
Materiality analysis process
Based on the GRI standards (2021), CTBC Holding has developed systematic analysis methods and established three key stages, namely “external environment analysis”, “identification and evaluation”, and “confirmation and disclosure”, for determining the material sustainability issues to guide its annual information disclosures and corporate sustainability governance. The Company conduct materiality analysis annually.
Material sustainability issues
Sorting criteria: value of the X axis (impact on operations and impact on the environment and society) multiplied by the Y axis (level of stakeholder concern). The sequence of above table and relatively position in the materiality matrix are based on the X multiplied Y.
Positive and negative impact assessment of material issues
The positive and negative impacts related to material issues are disclosed below in accordance with GRI Universal Standards 2021, GRI 3: Material Topics 2021. The assessment of these impacts was conducted by CTBC Holding's Corporate Sustainability Department, CTBC Bank's Corporate Planning Department, and CTBC Holding's Risk Management Department. These departments evaluated the respective issues, and an external consultant provided guidance and assistance in aggregating and calculating the results.
GRI topics and boundaries of impact
The GRI topics of CTBC Holding's material issues for 2022 and boundaries of impact are shown in the following table. For the KPI goals and performance related to the material issues, refer to 2.5. Sustainability goals and performance. Relevant management approaches and performance highlights are provided in the corresponding chapters.