Human Rights Protection

■ Human rights due diligence procedure

The human rights due diligence procedure was established by the human rights protection task force. Annually, the task force reviewed the operations, value chain, new commercial activities (such as merger or joint venture) of E.SUN and other activities through keeping track of changes in the society, monitoring data, and distributing surveys. Then, it was able to identify and evaluate groups at risk and potential human rights issues and proceed to establishing matrices for risks related to human rights issues. It then proposed a control plan for human rights issues based on potential risks and continued to monitor and improve the results to ensure an effective implementation of our human rights policy.


Impact identification

Regularly review our operations, value chain, and other activities to identify groups at risk and potential human rights issues.

Assess risk

Identify E.SUN FHC stakeholders in groups at risk and evaluate the possibility and impact of potential risk to establish human rights risk matrix.

Establish plans

The human rights protection task force proposes mitigation and compensation measures at E.SUN Sustainable Development Committee to formulate a plan for human rights issues; the scope 100% covers all of E.SUN FHC's operating sites in Taiwan and the 28 operating sites in 9 overseas regions.

Monitor and implement

Established mechanisms to supervise, track, and evaluate improvement plans. Monitor the effectiveness of improvements made to potential impacts.

Review and improve

Review the evaluation tools and processes and reexamine and adjust practices and commitments related to human rights issues.

Impact identifification

Item E.SUN Value chain New business activity Other activity
Supplier / partner Customer
Groups exposed to human rights risks Employee, Female, Indigenous people,People with physical disabilities Female, Indigenous people, People with physical disabilities, Children, Dispatched labor Customers in minority groups Female, Indigenous people,People with physical disabilities,Children, Dispatched labor Communities
Potential human rights risks Diversity and inclusion, Gender equality,Maternity health and protection, Overtimework, Occupational safety Labor rights, Occupational safety Service quality and customer equity, Personal information protection,ESG review on corporate customers Labor rights, Occupational safety

■ Human rights risk matrix

We established a matrix for human rights risks for employees, suppliers, customers, and those



Human rights control plan and results

Stakeholder Employee
Issue Diversity and inclusion Gender equality Maternity health and protection Overtime work Occupational safety
Percentage of stakeholders to the total number of employees 12.23% 1.40% 3.59% 7.70% 1.38%
Total 26.30%
Risk mitigation measure
  • Assigned special job roles to employees with physical and mental disabilities, and more disables are hired.
  • Provided barrier-free space and equipment.
  • Recruited talents from home and abroad.
  • Periodical reviewed and optimized gender-friendly measures.
  • Established diverse communication channels for employees to give feedback.
  • Established Guidelines for the Establishment of Gender Equality Committee for E.SUN FHC and its Subsidiaries, Rules and procedures for Sexual Harassment Prevention, Complaint and Punishment of E.SUN FHC and Its Subsidiaries, and Prevention Plan for Workplace Violation.
  • Included SDGs' gender equality into our goals.
  • Established the recruitment policy based on equality, ensured its compliance to laborrelated laws, and invited interviewers of diverse backgrounds for interviews.
  • Included Gender Equality and Friendly Workplace course in training requirements.
  • Granted employees better maternal, paternal, and parental leave packages than statutory requirements; established E.SUN Childbirth Incentive Program.
  • Established breastfeeding rooms that provided equipment for pumping breast milk.
  • Held lectures on maternity care and provided medical counseling.
  • Distributed maternity health protection survey and made adjustments to the work of working mother depending on their needs.
  • Provided taxi fare subsidy and lodging for female employees who worked overtime.
  • Amended leave- and overtime-related regulations according to the Labor Standards Act.
  • Added a reminder function to the attendance system.
  • In 2021, we established a system for employees to arrange their annual leave in advance, encouraging them to fully decompress whenever suitable and maintain work-life balance.
  • Implemented 4 protection plans.
  • Included lectures on traffic safety and prevention of human-caused harm in training requirements.
  • Hired full-time nurses and professionals of occupational safety and commissioned doctors for regular visits to our workplace.
  • Arranged air quality check.
  • Provided lighting, signs, electronic surveillance, or 24/7 safeguards at specific areas, including parking lots and entrances.
Possibility of impact 0% 0.02% 0% 0% 0.27%
Total 0.29%
Remediation measure
  • Proposed adjustments to management systems to Human Resource Development Committee.
  • If there is a relating case and is certified true,the supervisor of the unit shall take joint liability. The committee of human resource development would announce proper disciplinary actions.
  • Established sexual harassment reporting channels; established a gender equality and sexual harassment mailbox in 2021.
  • Sexual Harassment Complaints Review Committee conducted investigation in an objective, fair, and professional manner, and announced proper disciplinary actions based on the result.
  • Provided support for employees.
  • Provided flextime.
  • Provided support for employees, including counseling sessions and supportive measures given by doctors and psychologists.
  • Provided support for employees resuming work after unpaid parental leave and adjusted their work content and location depending on their needs.
  • Compensated employees with overtime pay.
  • Submitted a report of the supervisor to Disciplinary Panel, and the rating of his/her department's performance evaluation in the year must be lower than Excellence.
  • Improved the occupational accidents reporting process and established a responsible team to manage and keep track of it.
  • Provided information, including group and labor insurance, for employees to assist them in applying for government subsidies.
  • Commissioned doctors of occupational medicine to evaluate the state of employees returning to work and arranged their work depending on their needs.
  • Provided support for employees.
Percentage of compensation measures carried out 100%
Outcome
  • Hired 6 Taiwanese indigenous people in 2020.
  • There were no penalties in relation to rights violation of Taiwanese indigenous people in 2020.
  • Employees with a same-sex spouse enjoy the same rights and benefits.
  • Adjusted the uniform code; female employees can wear flats to work.
  • In 2020, there were 2 cases of sexual harassment, and both had been taken care of.
  • Awarded Workplace Gender Equality certification from Taipei City Government.
  • 8,380 employees participated in the training course Gender Equality and Friendly Workplace.
  • President Magi Chen, previously the CFO, was the first female to take over the position of the president of E.SUN FHC.
  • The gap between the annual salary of female managers and their male counterparts is less than 10%.
  • Held lectures on maternity care and commissioned doctors to give counseling services, totaling 9 sessions and 87 participants.
  • Distributed 340 surveys of maternity health protection.
  • In 2020, 80% of the employees on parental leave returned to work.
  • 348 people adopted the flextime system.
  • There were no penalties in relation to overtime work in 2020.
  • There were no findings or penalties in relation to labor safety and health inspection in 2020.
  • 7,837 employees participated in lectures on traffic safety and prevention of human-caused harm.
  • 34 branches in Taipei were awarded the Indoor Air Quality Self- Management Certification, reaching a completion rate of 100%.

Stakeholder Supplier/Partner
Issue Labor rights Occupational safety
Percentage of stakeholders to the total number of employees 1.90% 1.90%
Total 3.80%
Risk mitigation measure
  • Required suppliers to sign Statement of Commitment to Human Rights and Environmental Sustainability and checked regulations on human rights / sustainability and related penalty announcements.
  • Review Corporate Social Responsibility Self- Assessment Form for Suppliers and On-Site Supplier Evaluation to determine suppliers' potential risk in human rights, occupational safety and environmental protection.
  • Established E.SUN FHC Sustainable Procurement Policy with references from ISO 20400 to control the social, economic, and environmental impact of procurement and asked suppliers to abide by international human rights policies.
Possibility of impact 0% 0%
Total 0%
Remediation measure
  • Held supplier communication meetings to raise awareness of corporate social responsibility.
  • Requested high-risk suppliers to provide awareness training on related issues.
  • Periodically interviewed potentially risky suppliers to review their improvement status.
  • Adjusted the amount of materials purchased from suppliers or terminated contractual relations, depending on the penalty imposed on a supplier.
Percentage of compensation measures carried out 100%
Outcome
  • 100% of our new suppliers in 2020 signed Statement of Commitment to Human Rights and Environmental Sustainability and completed Corporate Social Responsibility Self- Assessment Form for Suppliers, totaling 235 (182 from Taiwan and 53 from overseas).
  • Among the suppliers who signed Corporate Social Responsibility Self- Assessment Form for Suppliers, there were 8 with potential labor rights risks, all of which were reviewed and kept tracked of.
  • Held communication meetings, with participants from 60 suppliers.

Stakeholder Customer
Issue Service Quality and Customer Equity Personal information protection ESG checks for corporate customers
Percentage of stakeholders to the total number of employees 0.013% 5.44% 1.09%
Total 6.543%
Risk mitigation measure
  • Set up TQM Committee and Treating Customers Fairly task force, coordinate and supervise bank-wide service quality by the management team.
  • Formulated "New product/New service compliance and risk management assessment", ensured all product or service complied with the regulation and treating customers fairly. The check rate was 100%.
  • Built intelligent risk management by developing Regtech and other new technologies.
  • Took customer service quality and customer complaint into consideration in the performance evaluation for branches to raise the overall awareness of our service culture.
  • Set up courses about anti-fraud, treating customers fairly, and customer service.
  • Established E.SUN Financial Holding Co., Ltd. and Subsidiaries Principles on Gathering, Processing and Use of Personal Information, and handled customers' information in accordance with the Personal Information Protection Act.
  • Published Privacy Policy and Disclaimer, Mandatory Disclosure Regarding Use of Personal Data by E.SUN Bank, and Customer Right Announcement on our official website.
  • Established cross-departmental Personal Information Protection task force according to E.SUN FHC and Subsidiaries Founding Principles of Personal Information Management Organization to review the performance of our work on personal information protection and improve related procedures annually.
  • Acquired ISO 27001 certification for our information safety management system and PCI DSS certification for our credit card acquiring system.
  • Introduced the data loss prevention (DLP) system.
  • Collaborated with Financial Information Sharing and Analysis Center (F-ISAC) to participate in "F-SOC and crossfield defense" in 2020.

【Responsible lending】

  • Each credit application must be subject to ESG examination and AML investigation.
  • Adopted the 4th edition of the Equator Principles and expanded the scope of its application to include more project financings; we also paid great attention to risks related to climate change, human rights, and biodiversity to improve our ability to manage environmental and social risks.
  • Established a green energy team to participate in wind and solar power project financings, and indicated our support for the green energy industry and willingness to granting loans to them in E.SUN Bank's policy.

【Responsible investment】

  • E.SUN Principles for Sustainable Investment, with references from Principles for Responsible Investment, including the environment, society, and corporate governance in the decision-making process of investment; we prioritized businesses with lower ESG risks to invest in according to ESG indices established by domestic and international institutions.
  • Created a list of potentially controversial industries or businesses (tobacco, munitions, gambling, fur, coal mining, and lumber industry, etc.) and conducted due diligence to carefully review them; only if they did not have severe impact on sustainability, we could proceed with the investment.
Possibility of impact 0.06% 0% 0%
Total 0.06%
Remediation measure
  • Set up "Treating Customers Fairly Area" on the official website, where we provided diverse reporting channels for customers.
  • Set up dedicated team in each business units. Held customer complaint meetings monthly to track cases and report to the board of directors.
  • Ratified by the board of directors, Consumer Dispute Resolution Principle stipulated the procedure, handling time and follow-up actions for each case.
  • Kept track of abnormal transactions and launched push notifications on E.SUN mobile app.
  • Established E.SUN FHC and Subsidiaries Rules of Emergency Response for Personal Information Infringement.
  • Established Emergency Response and Crisis Management task force to handle compensation measures.
  • Regularly conducted drills on personal information loss to improve our reaction capability, further promptly dealing with the crisis and reducing the impact from the loss.
  • Purchased cyber insurance in 2020 to reduce the risk of operation failure and relevant compensation responsibility.

【Responsible lending】

  • Regarding credit extension targets on which severe penalties were imposed due to human right issues, direct/indirect credit check is conducted to understand the impact of the reported matter on corporate operations, and improvement is requested.
  • Credit extended to such targets is adjusted based on the degree of influence. In severe cases, these targets are asked to settle their debt in advance and are blacklisted.

【Responsible investment】

  • According to the E.SUN Securities Sustainable Investment Management Memorandum, investment in equity and fixed income shall be reviewed in accordance with its investment policy and business brochure, or the invested company shall be reviewed with investment standard and purpose quarterly. If the invested company violates ESG relating issue and has no apparent improvement plan, the bank will lower its portfolio or withdraw its investment.
Percentage of compensation measures carried out 100%
Outcome
  • A total of 12 treating customers fairly monthly meetings and 11 workshops were held in 2020.
  • In 2020, there were 1,014 customer complaints (619 from the competent authority), which was 131 more than that in 2019 due to bail out loans for the pandemic, and 1,458 pieces of positive feedback, which was 340 more than that in 2019.
  • The overall customer satisfaction rate was 85.47%.
  • Conducted information security training every month in 2020 and held 4 online information security courses and quizzes. 37,269 participants have passed the exam.
  • 162 employees in the field of information security acquired ISO 27001 Lead Auditor certification.
  • There were no findings or penalties related to customers' personal information from the governmental authority.
  • In 2020, we declined 1 application because the business operations could easily lead to disputes with customers; there were no findings or penalties related to major labor disputes or labor rights violation for the rest of the businesses receiving loans.
  • Raise the intensity of the loan review process control for industries of higher ESG risks; in 2020, loans granted to controversial industries with potential risks occupied 1% of our total granted loans.
  • E.SUN's equity investment was 100% in industries of mid to low ESG risks, and our bond investment in those industries reached 98.66%.

■ Human Rights Protection Outcomes

Gender equality policies

Promoting work equality
E.SUN Financial Holdings has been actively promoting gender equality in the workplace over the long term, implementing the UN Sustainable Development Goals SDG 5: Gender Equality with specific goals and actions, and setting strategic directions such as "encouraging women to be promoted to managerial positions" and "paying attention to women's contribution to family care." In 2020, the position of President at E.SUN FHC was assumed by its former Chief Financial Officer, Magi Chen, who became the first female President of E.SUN FHC; this embodied E.SUN's commitment to passing on its corporate heritage through promoting competent managers. At present, the retention rate of female supervisors at E.SUN reaches 97.4%, and the goal is to increase the proportion of female supervisors to 43% by 2025.


Female / male remuneration ratio in Taiwan in 2020
Position level Base salary Annual remuneration
Management 98% 97%
Middle management 97% 96%
General staff 93% 91%

President Magi Chen of E.SUN FHC joined E.SUN in 1992 and was appointed as the Chief Financial Officer of E.SUN FHC in 2002. She has assisted E.SUN in launching various infrastructure projects, including launching the International Affairs Department, E.SUN's first overseas branch, the Los Angeles branch of the United States, and the Treasury Division. She has won awards such as "Asia's 25 Most Influential Women in Treasury" by The Corporate Treasurer; "Asia's Best CFO" by Corporate Governance Asia; and "National Manager Excellence Award" by the Chinese Professional Management Association.
In 2020, Magi Chen took over as President of E.SUN FHC and became the first female President of the company. President Magi Chen stated that "E.SUN FHC is the guardian of many happy families," and hopes that E.SUN becomes a happy second home for employees by providing them with an equal and friendly working environment and comprehensive benefits packages.


Creating a friendly environment

  • E.SUN is committed to the protection of motherhood and women's rights, and has for this reason created a gender-friendly system and environment. In 2020, the bank received the first round of "Workplace Gender Equality Indicator Certifications" issued by the Department of Labor of Taipei City Government, affirming E.SUN's performance in terms of indicators such as "work-family balance," "friendly pregnancy and childcare measures," and "gender friendly measures for workplace safety." Specific measures include the provision of maternity leave and paternity leave that are superior to regulatory requirements, the provision of birth subsidies amounting to NT$100,000 per child through the "E.SUN Baby Development Fund," and obtaining Excellent Breastfeeding Room Certification for large-scale office buildings.
  • E.SUN listens to the voices and suggestions of employees, and adjusted its clothing regulations in 2020, canceling the requirement of wearing high heels with uniforms for women and thus enabling female employees to wear flat shoes.
  • E.SUN supports and protects the freedom and rights of same-sex marriage through action, ensures that employees and their same-sex spouses enjoy the same benefits, and is committed to creating a workplace free of discrimination. Since same-sex marriage became legalized in Taiwan, employees with same-sex spouses have applied for related benefits and marriage subsidies, and E.SUN has also completed the allocation of subsidies according to procedure.


Sexual harassment prevention

  • E.SUN established the "Guidelines for the Establishment of Gender Equality Committee for E.SUN FHC and its Subsidiaries"and "Rules and Procedures for Sexual Harassment Prevention, Complaint and Punishment of E.SUN FHC and Its Subsidiaries" to clearly regulate complaint channels, complaint methods, investigation and review principles and penalties, and has announced the above regulations on the intranet. In 2020, E.SUN also revised the two above regulations to strengthen the functions of the Gender Equality Committee and make the sexual harassment complaint and disciplinary system more complete.
  • E.SUN has formulated a Sexual Harassment Complaints Review Committee consisting of 7 committee members, and the proportion of female members is more than one-half. The chairman is Vice President or above, and the remaining posts shall be held by the employees of E.SUN FHC and its subsidiaries. The investigation of a sexual harassment complaint incident shall commence within seven (7) days from the date the complaint was filed or referral was made to the Complaints Review Committee, and shall be completed within two (2) months.
  • In 2020, E.SUN accepted 2 cases of sexual harassment complaints, and held sexual harassment complaint review committee meetings and initiated the investigation procedures in accordance with the "Rules and Procedures for Sexual Harassment Prevention, Complaint and Punishment of E.SUN FHC and Its Subsidiaries." During investigation, the principles of nondisclosure and confidentiality were observed, and appropriate disciplinary measures were finally given in accordance with relevant regulations.


Employee communication channels

E.SUN has always upheld the importance of paying attention to and listening to the voices of employees. The bank encourages employees to join the trade union and guarantees the freedom of association of employees; in 2020, the proportion of employees joining the trade union was 12.57%. A total of 4 labor-management meetings were held to discuss 10 topics, including workdays and holidays, special leave regulations, overtime procedures, women's nighttime work, flexible working hours, epidemic prevention measures, etc. The abovementioned labor-management agreement applies to 100% of all employees. In 2020, E.SUN established a "CHRO Mailbox" to better understand the concerns of employees and listen to their suggestions and voices. The bank also added an "Employee opinion reflection/reporting section" on the intranet to enhance the convenience and frequency with which employees express their opinions. The section includes a variety of different communication channels, enabling immediate feedback on various issues.



2020 Employee engagement survey

Employee engagement throughout the years

Item 2018 2019 2020
Male / female 96.65% / 97.23% 96.79% / 97.04% 95.86% / 96.31%
Under 30 / 31-50 / over 51 - - 93.90% / 97.23% / 99.78%
Total 96.95% 96.93% 96.10%
Response rate 80.90% 87.20% 75.50%