Sustainability Strategies

1_1 Sherman Lin, Chairman of TDCC

Letter from the Chairman & CEO
  Corporate social responsibility has been widely recognized by governments and companies all around the world in recent years. With regard to international corporate social responsibility, not only activities that benefit the society but also issues that are related to the stakeholders, such as shareholders, customers, employees, and environmental communities are considered. TDCC sticks to the goal of sustainable development in the market and believes in the importance of benefiting from the society and contributing to the society, committing itself to social welfare programs, promoting financial literacy and environmental protection, implementing corporate caring and fulfilling social responsibility through activities. To integrate TDCC's business strategy with corporate social responsibility, allow stakeholders such as the competent authority, shareholders and participants to fully understand TDCC's concept of sustainable development and further promote societal well-being, we were the first, among the related units of securities and futures agencies, to get our CSR report verified and approved by an internationally renowned certification institution.

  With long-term effective communication with stakeholders, we share the common goods with them and enjoy the fruits of growing together. At the present stage, business operates in parallel with social values. Therefore, while driving our business forward, we also implement our corporate social responsibility. We have maintained smooth operation and the sound development of the market through the establishment of a safe, efficient and low-cost post-trade infrastructure, and protect the rights and interests of our investors. With its resources and core competence, TDCC promotes securities dematerialization and digital finance, enhances financial market development, and strengthens the link between the Taiwan’s market and international markets by understanding the needs of its customers and subsequently launching preparation in advance, in hope of starting from our business to respond to the sustainable development goals of the United Nations by continuously contributing to the economy, the environment and the society.

  It has been more than 28 years since the establishment of TDCC. Under the guidance of the competent authority, TDCC continues providing efficient and secure registration, custody, and book-entry services for the market, as well as post-trade operations for fixed-income products and funds markets to reduce market operation costs. The business model of the participants has been changing over the years, and TDCC has also changed by diversifying its business and working with customers to drive innovations in financial services and promoting a platform to launch more universal, convenient, and safe financial services, which brings about positive changes in our society. In addition, we dedicate ourselves to improving our service quality and information system efficiency, and promoting international business. We also coordinate with the competent authority to promote the financial system in line with international standards and strengthen market supervision.

  We have established FundRich Securities to build the first large fund platform in Taiwan, using big data to analyze the behavior of investors throughout the internet, introduce a third-party supplier for robotic financial consultants, and provide after-sales service with customer service robots through cloud monitoring. With reasonable fees and user-friendly interface, we enable all groups to invest independently and expand the fund market momentum.

Creating a Hub for Domestic Financial Services
  TDCC diligently paves the way towards digital transformation. We adopt a platform concept based on innovative thinking to connect the platform operators, information and telecommunications carriers, and financial technology companies, and offers traditional B2B as well as B2C services. Measures such as “ePassbook”, “StockVote”, and "FundRich Securities” are major applications which transform the market by using platforms. We continue to build the hub of domestic financial services by offering various custodial services, developing financial technology, creating a mobile digital environment for the securities market, promoting dematerialization of services, and integrating digital service platforms to create long-term value for stakeholders. Through various post-trade services, we build a safe, efficient, low-cost post-trade infrastructure, maintain smooth operation and sound development of the market, and protect the rights and interests of the investors.

Assisting in the Supervision of the Taiwan Financial Market
  With its concessionaire status granted by the government, TDCC has been an important promoter in supervising financial markets for many years. In response to changes in the market environment, we have endeavored to enhance market transparency, build various control systems, and improve operational inspections and counseling. We ensure the compliance of the participants, securities dealers, and stock affairs units, and implement the internal control system to stabilize the financial market, protect the rights of investors and safeguard the security of the national financial market.

Devoted to the Development of Inclusive Finance and Increasing the Availability of Financial Services
  In response to the global trend of inclusive finance, we strive to create a financial infrastructure with lower costs, higher efficiency and higher service availability by offering innovative services. With advanced practices like dematerialization, financial technology, and platforms (such as the promotion of TDCC ePassbook and FundRich Securities), we wish to expand the availability of financial services. The overall goal is to seek low-cost solutions for customers, promote financial education on a large scale, and nurture future financial talent to enable more individuals to benefit from the country’s overall financial services, implementing the concept of inclusive finance.

Social Participation
  TDCC has been caring for the community for a long time. It actively responds to and takes care of the needs of the community by cultivating future financial talent, promoting rural education, and caring for the disadvantaged. The activities include Financial Literacy for Youth (FLY) courses and industry-academia internship programs, organizing family care activities with Taiwan Fund for Children and Families around the country, sponsoring afterschool care programs in elementary schools in rural areas, sponsoring sports teams of the elementary and middle schools recommended by Sports Administration and county/city governments, and holding charity events, such as blood donation for years. TDCC stipulated in Articles of Incorporation that 3-5% of the post-tax surplus of the previous year should be set aside towards social welfare and sponsorship activities, while we are preparing the next year’s budget. "Guidelines for Public Welfare Donation Management" are formulated and monitored periodically. These are all concrete demonstration of TDCC's actual actions to implement corporate caring and social responsibility, and pursue a beautiful society.

Friendly Workplace
  Talent is TDCC's most valuable intangible asset. With business transformation, diversification and development of international business, we have formulated an attractive welfare policy for employees in line with our policies. We continue to invest in nurturing our employees, planning leave and welfare system, offering training to meet their diverse needs, and providing sound rotation and transfer policy, along with workplace safety. These measures will help our employees maintain physical and mental health and work-life balance, strengthen the company's overall competitiveness, and create a happy TDCC family.

  With the advent of the Fintech era, faced by challenges in the financial situation domestically and worldwide and changes in the participants' operating models, TDCC will pursue customer orientation and continue to be open and innovative. Through the application of Fintech, such as mobile technology, big data, cloud computing, social media and the Internet of Things, TDCC will provide a safe, efficient, and beneficial digital service system for industry players and investors. It will optimize the digital environment of the financial market, provide safe and convenient financial innovation services for Taiwan’s capital market, and create an innovative Fintech brand for TDCC.

Core Strategies for Sustainability
  TDCC achieves sustainable development through providing concrete help on social issues with its own resources, conditions and core competencies. We consolidated the ESG notion with its core strategies of sustainability focusing on "fulfilling the role as a domestic financial service hub" to create diversified value for major stakeholders; "endeavoring to achieve financial inclusion to enhance the accessibility of financial service" to enable more groups to have easier access to comprehensive financial services; and "assisting the country in financial regulation" to stabilize the country's financial infrastructure and conduct comprehensive and intensified construction.


CSR Management

CSR Committee
  TDCC established the CSR committee since 2017 to strongly promote relevant matters concerning the corporate social responsibility. The committee comprises seven responsible teams including the "corporate governance team", the "financial innovation team", the "financial responsibility team", the "transnational cooperation team", the "environmental sustainability team", the "social participation team" and the "employee care team". Respective team is formed by difference departments based on various issues and is concurrently led by head of each department in TDCC.

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Sustainability Achievements

Communication with Stakeholders
  Respective stakeholder's relations with TDCC, engagement and communication channels and its frequency are listed as follows. Although the Company adopted the approach of internal questionnaire regarding the material issue analysis in the report of this year, it usually engaged stakeholders through various channels. Therefore, we have a profound understanding on issues of concern to stakeholders and hope to respond to such key issues and items through the report.
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