about this report - first financial holdingir.firstholding.com.tw/download/2015_csr_report.pdffirst...

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About this Report

Reporting period

Scope and boundary

Reporting principles

External assurance of report

Contact method

Corporate Social Responsibility Reports from past years

First Financial Holding Co., Ltd. (hereafter referred to as FFHC or "Our Company") not only provides the full-spectrum of financial products and services to facilitate financial transactions and investments by our customers. We also have a long history of fulfilling and promoting corporate social responsibility by giving back to society, improving rights well living environment quality of employees in order to fulfill CSR in a more effective manner. To further emphasize the efforts and determination of FFHC and its subsidiaries (Our Group) in the economic, social, environmental and governance aspects of CSR as well as strengthen our communication with stakeholders and the general public, the "First Financial Holding 2015 Corporate Social Responsibility Report" (the "Report") was compiled.

The Report discloses the performance and actions of FFHC in the economic, social, environmental and governance aspects during 2015 (From January 1 to December 31, 2015). Some of the information goes back to 2013 and 2014 to illustrate differences or growth.

This Report encompasses FFHC and its 8 subsidiaries First Bank, First Securities, First Securities Investment Trust, First-Aviva, First Financial Assets Management, First Consulting, First Venture Capital and First Insurance Broker. For data related to environmental performance then the scope of disclosure covers the business locations in Taiwan as well (does not include First Securities, First Venture Capital and the First Finance Assets and their branches). The relevant data are calculated based on international standards. All financial data are calculated using NTD.

This basis and framework of the Report is based on the Global Reporting Initiative (GRI) G4 guidelines. The content includes reference tables for the GRI/Financial Sector Supplement, UN Global Compact and ISO 26000 Social Responsibility Guidelines. We will continue to compile and publish this CSR report on an annual basis. The previous report was published in June 2015. The complete report is available for download and viewing by the general public on the First Financial Holding corporate website under the Corporate Social Responsibility section.

The Report has been verified by the British Standard Institution (BSI), an independent third-party certification body, as being in accordance with the AA 1000 validation standard and the GRI G4 guidelines in terms of materiality, inclusiveness and responsiveness. The content disclosed in the Report matches the core options of the GRI G4 guidelines. The independent assurance statement from BSI is included in the Appendix.

Corporate Governance Section, Administration Division, First Financial Holdings Co., Ltd.

Tel: +886-2-23485364Fax: +886-2-23119691Address: No. 30, Sec. 1, Chongqing S. Rd., Zhongzheng Dist., Taipei CityE-mail:[email protected]: http://www.firstholding.com.tw/tw/csr/csr_b01.htm

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First Financial Holding CSR Report

Table of Contents 2015Letter to Stakeholders

Awards and Acknowledgments

Corporate Social Responsibility and Stakeholder Communication

Sustainable Governance

First Performance - Rewarding shareholders

First Brand - Innovative service

First Governance - Exceptional management

First Integrity - Risk management

Green Finance

First Energy - Protecting the planet

First Security - Safeguarding customers

First Environment - Caring for the land

Happy workplace

First Work - The right people in the right place

First Compensation - Diverse benefits

First Workplace - Friendly environment

First Training - Talent cultivation

First Labor - Looking after employees

Social Harmony

First Service - The customer comes first

First Care - Love for Taiwan

First Dream - Pride of Taiwan

First Culture - Grassroots cultural development

Independent assurance opinion statement

Greenhouse Gas Verification Statement

Global Reporting Initiative (GRI) G4.0 Content Index

GRI Financial Service Sector Supplement Content Index

United Nations Global Compact Content Index

ISO 26000 Index Content Index

UN Sustainable Development Goals Content Index

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First Financial Group was founded 117 years ago in 1899. To uphold the spirit of "a century of tradition and innovative service" and become the "No.1 brand in green finance as our target, we are working with society to protect the planet, communication compass ion and fu l f i l l our corporate soc ia l responsibility. In 2011 we began adopting global sustainability reporting guidelines for the compiling of the CSR report every year. The report discloses our Group's efforts and results in the Environment (E), Society (S) and Governance (G). It also assesses our strategies and action plans for sustainability. Looking back on 2015, despite challenges in the external business environment such as weakened global growth, fluctuating currency rates and declining exports, through the joined efforts of all employees First Financial Group continued to report consolidated pre-tax profits of NTD18.976 billion. This represented a new record for the group and a 15.12% increase over the previous year. It is not only far above the 3% average growth achieved by Taiwan's finance & insurance industries in 2015 but also marked the 4th consecutive year that surpassing the NTD10 billion record. It illustrates that the integration strategy adopted over the years in response to macro has produced a strong performance in areas such as cross-border network services, cash management platform, and streamlined value chain financing through electronic processes!

To fulfill our vision of becoming the leading financial brand in Asia, we have been actively expanding our presence in the Asia-Pacific region in recent years. The core subsidiary First Bank serves as the spearhead of our dual-pronged overseas development strategy of "west into China, south towards ASEAN." Apart from the grand-opening of Xiamen branch and Vientiane branch in Laos during 2015, the Chraoy Chongvar and Mean Chey branches in Cambodia also commenced operations as well in January 2016. First Financial Group now owns 39 overseas presences, giving us the most financial service locations in Asia amid any Taiwan-owned banks. All of our China offices have also been granted approval to offer RMB services as well, allowing us to provide Taiwanese businesses and local customers with more comprehensive

financial services. In 2015 we also completed a capital raising plan by NTD23.52 billion that both boosted the capital adequacy of the Group and our banking arm. This in turn led to Moody, Taiwan Ratings and Standard & Poor upgrading the credit rating for FFHC, First Bank and First Securities. This shows that our solid capital base and asset quality has been well-acknowledged by the credit rating agencies.

Climate change as well as the continued deterioration of the Earth's environment and global economy means that businesses should take their duty to stakeholders even more seriously by applying their core competencies and make a tangible contribution to both society and environment on top of ensuring their profitability. In 2015, First Financial Holding followed the targets set by the CSR Committee in carrying out action plans on corporate governance, green finance, satisfactory workplace and social harmony. This instills the spirit of CSR into daily operation of businesses. In corporate governance, we not only received the highest A++ rating in the Information Disclosure Evaluation of TWSE/GTSM-listed companies but were also rated in the top 10 by the Taiwan Stock Exchange Corporation in its 1st Corporate Governance Evaluation among all 798 listed companies. To promote green finance, we also set up the "Green Financing Review Principles" based on the "Equator Principles" to carefully screen all loan underwriting and business partners. As of 2015 we have successfully secured the CSR Declarations of 15,159 loan accounts to reduce the environmental and social risks associated with lending to improper borrowers. In 2015, the criteria of the "Green Financing Review Principles" was further extended to overseas locations, leasing companies as well as the fund management and insurance companies that offer products through the bank. To encourage suppliers to protect labor rights and the environment, our procurement requirements and contracts also incorporate the "Declaration on Human Rights and Environmental Sustainability Clauses." We have secured 697 of such declarations to date. At the same time, we set an example by forming the "Green Building Certification Program" team in 2010 to kick off our push for green finance. Seven existing office buildings have now been refurbished and received the

Letter to Stakeholders

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Diamond-grade Green Building Mark. We are also introducing electricity, water and fuel-saving initiatives as well as paperless measures as part of the Group's four key projects of "Environmental Sustainability", "Green Purchasing", "Green Financing Review Principles" and "Green Partners."

We are optimizing our business processes so as to give employees more leisure time to participate in community activities, in-service education or social welfare. Every effort is being made to build a "happy enterprise" that looks after employees and embraces CSR. We want to help employees achieve physical and mental well-being and make a corporate culture of "happy enterprise" the pride of First Financial Group. On the social welfare front, we have formed a volunteer service corps from more than 8,000 local employees to go where they are needed throughout Taiwan. In keeping with the spirit of "local care", we visit underprivileged children and seniors while also supporting young entrepreneurs and cultural creativity enterprises. We also sponsor sporting activities such as table tennis and tennis along with local arts, culture and musical concerts to give back to society with concrete measures.

For 2016, First Financial Group will follow a well- defined strategy of "Growth, Innovation and Sustainable Improvement" by supporting the upgrade and expansion of quality enterprises, providing a rich selection of cutting-edge financial products and services, enhancing our digital channels and cross-border value chain services, and striving to optimize and enhance the Group's profit structure. We will also focus on customer and channel development in order to deepen our customer relations management, protect consumer rights and enforce compliance. Organization and capital restructuring will be introduced to boost our operating performance as well. At the same time, we will continue to engage with society in many ways and enhance our corporate image on sustainability in order to achieve the goal of being a "niche", "regional", "digital" and "happy" enterprise.

FFH. Stakehoder

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01January

07July

08August

09September

2015

04April

05May

06June

Corporate card presented with "Best Corporate Product of the Year" by MasterCard International

Won the "Green Building" and "Industry and Commerce Division A" categories of the Taipei City Energy Leadership Awards (f)

"ISO 14064-1 Greenhouse Gas Inventory System" certification achieved by 30 First Bank branches including Zhongxiao Road branch

Received certificate of appreciation for "care and support of handicapped people" from GOFE

Received Excellence Award in the Environmental Friendliness Category of the "Global Views Corporate Social Responsibility Awards (a)

Received the 1st "CommonWealth Finical Management Role-Model Awards" including top 3 in the "Bank Financial Planning Image", "Recommended Financial Planning Bank", "Best Service Overall" and "Online Bank with the Best Investment and Financial Planning Service" categories, and "Role-Model Award" for overall performance (b)

Presented with certificate of appreciate for "Face Equality Supporting Enterprise" from the Sunshine Social Welfare Foundation

Received the distinction award in the private enterprise division of the 3rd "National Environmental Education Awards" (c)

Chosen for inclusion in the "Taiwan High Compensation 100 Index" for the second consecutive year

Received certification of appreciation for "Going Home for Premature Babies" from the Taiwan Premature Baby Support Association

Chosen for inclusion in the "Taiwan Employment Creation Index 99 " for the sixth consecutive year

Recognized by the Financial Supervisory Commission as "2015 Benchmark Insurance Company for Salary Increases"

ISO 50001 Energy Management System certification for five sites including the Headquarters building

9th place in the large enterprises category of the "Commonwealth Magazine CSR Corporate Citizenship Awards" (d)

Received "Voluntary Energy-Saving Enterprise" award from the MOEA Bureau of Energy

Received "Public Spirit Award" from the Ministry of Health and Welfare (e)

2015-2016 Awards and Recognition

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g_

f_

e_

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a_

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Chairman Ching-Nian Tsai presented with "Kwol-Ting Li's Management Award" his leadership at First Holding on improving business performance, fulfilling corporate social responsibility and promoting of green finance and public welfare. (k)

Wealth Magazine's "Financial Holding CSR Special Award" (l)

Received the "BSI Award" from British Standards Institution (m)

Presented with the "Golden Quality Award - Credit Card Data" from the Joint Credit Information Center for four straight years (n)

The four subsidiaries First Securities, First Securities Investment Trust, First-Aviva Life Insurance and First Financial Assets Management all achieved "ISO 14064-1 Greenhouse Gas Inventory" certification

Received "Outstanding Digital Finance Award" for the Outstanding Securities Service Assessment (o)

Received "Gold Award", "Transparency and Integrity Award" and "Climate Leadership Award" at the Taiwan Top 50 Corporate Sustainability Report Awards from the Taiwan Institute for Sustainable Energy (h)

Headquarters building passes the latest "ISO 14001 Environmental Management System" certification (i)

Received Gold Award in the "ROC Enterprise Environmental Protection Awards" from the Environmental Protection Administration of Executive Yuan (j)

10October

11November

12December

Recognized for "Outstanding Contribution to Green Purchasing by a Private Enterprise" by the Taipei City Government (g)

The Headquarters building and IT building were both recognized for excellence through "Taipei City Energy-Saving Label for Business Buildings"

Received certification of appreciation for the "Shining Star Singing Competition and Autism Awareness" event from the Taipei City Autism Foundation

Ranked in the top 5% of the Corporate Governance Assessment Program for the second consecutive year (p)

Received the three awards "A-Grade Bank for Creativity Industry Loans", "Participation Award for School and Community Financial Education" and "Financial Organization with Excellent Performance in Fraud Prevention"

First Financial Holding won the Global Views Corporate Social Responsibilityawards “CSR Annual Award – Financial Industry Model” and “HappyEnterprise Model Award”

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05May

2016p_

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Recognized for excellent performance in the "Increasing National Insurance Coverage Program" of the Financial Supervisory Commission for the 15th consecutive time

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Corporate Social Responsibility and Stakeholder Communication

1 CSR organization structure

First Financial Holding Corporate Social Responsibility Organization Chart

Ethical corporate managementOrganizational strategyRisk managementRegulatory complianceProtection of shareholder rightsInformation transparencyInternal control

Product and service responsibilityCustomer data protectionConsumer rights protectionCustomer relations managementGreen product

Employee compensationEmployee welfareCompetency managementEmployer/employee relationsEducation and trainingEmployment environment

Social welfareCommunity participationCharitable activitiesCorporate image

Environmental sustainability policyCorporate carbon reduction managementGreen purchasingEnvironmental sustainability awarenessSupply chain management

First Financial Holding (FFHC) has long been committed to monitoring trends in society and fulfilling our corporate social responsibility (CSR), with significant effort invested towards promoting corporate governance, the development of a sustainable environment, and supporting charities. In 2011, the FFHC Board of Directors approved the establishment of a "CSR Committee" to improve the efficiency of CSR promotion efforts. The chairman of FFHC is also the chairman of the CSR Committee and its members are drawn from the presidents of the First Financial Group. Under the CSR Committee are working groups on "Corporate Governance", "Customer Care", "Employee Care", "Environmental Sustainability" and "Social Welfare". A dedicated unit is also assigned by each subsidiary for CSR communications, liaison and the provision of related information. The core team consists of 80 people (1 chairman, 8 committee members, 3 conveners, 5 executive directors, and 63 people split among the various working groups). The CSR Committee is administered by the Corporate Governance Section of the Administration Division and is responsible for the overall planning and promotion of CSR within the Group. The top-down approach ensures the effective and concrete implementation of CSR objectives. In 2015, education and training on Group CSR policy, Code of Conduct and annual targets were incorporated into core employee training courses. Changes were also made to the membership of the Customer Care WG to enhance the link between sustainability targets and core competencies.

Chairman(Chairman of FFHC)

Corporate Governance WG

Customer Care WG

Employee Care WG

Environmental Sustainability WG

Social Welfare WG

Committee Members(Presidents of FFHC and subsidiaries)

In 2011 the FFHC Board defined a "CSR Policy" and "CSR Code of Conduct" (see the "Corporate Governance section of the corporate website at http://www.firstholding.com.tw/tw/governance/manageRule.htm). "CSR Policy" defines our commitment to the fulfillment of our CSR on customers, employees, shareholders, community participation, charity, development of a sustainable environment, products and services, and ethical corporate management. The "CSR Code of Conduct" are the overarching guidelines on the economic, environmental and social risks and impacts of our company and our subsidiaries. It is aimed at realizing sustainable development through promotion economic, environmental and social progress.

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Corporate Social Responsibility and Stakeholder Com

munication

2 Corporate sustainability vision

3 Operation of the CSR team

First Financial Holding CSR Milestones

Establish CSR Committee

Defined FFHC CSR Code of Conduct, Policy and CSR Committee Organic Regulations

2011

2014

2012

2015

2013

Published first CSR Report (2011)

Set "No. 1 Brand in Green Finance" as the sustainable development target

Presented with "Newcomer Award" in the Taiwan Corporate Sustainability Report Awards

Received Commonwealth CSR Corporate Citizenship Award

2012 CSR Report certified by an independent certification body for the first time

Received "Financial Excellence Award" from the Taiwan Corporate Sustainability Report Awards and the "Creative Communications Role-Model Award" in Corporate Sustainable Development Performance

Revised FFHC CSR Code of Conduct, Policy and CSR Committee Organic Regulations

Received "Gold Award" and "Climate Leadership Award" from the Taiwan Corporate Sustainability Report Awards

14th place in the Large Enterprises category of the Commonwealth Magazine CSR Corporate Citizenship Awards

Published first English version of CSR Report (2014)

Received "Gold Award", "Transparency and Integrity Award" and "Climate Leadership Award" from the Taiwan Corporate Sustainability Report Awards

9th place in the large enterprises category of the Commonwealth Magazine CSR Corporate Citizenship Awards

Received Excellence Award in the Environmental Friendliness Category of the "Global Views Corporate Social Responsibility Awards

FFHC has made "Growth, Innovation and Sustainable Improvement" its targets and embraced the five key strategies of "Enhancing customer diversity value", "Management of digital marketing experience", "Leveraging capital to create value", "Expanding the penetration of international business" and "Building a model happy enterprise" even as we continue our steady transformation into a "Regional", "Niche", "Digital" and "Happy" financial institution. In listening to the voices of our stakeholders during this process we have come to recognize that "fulfilling the social responsibility of the finance industry in the financial service supply chain" and "integration with core competencies" are crucial to sustainable corporate development. Both of these crucial elements are therefore taken into account when we set our economic, environmental and social targets in order to form a partnership with our stakeholders for realizing a future with sustainable and harmonious development.

Every year, each working group compiles the E.S.G. Issues of Concern to FFHC stakeholders then draws up the CSR annual targets and draft action plans for the following year. These are discussed and revised internally at WG meetings before being submitted to the "CSR Committee" for review. Approved proposals are then announced for implementation. Progress on each target and action plan is then tracked and reviewed on a quarterly basis by CSR Committee WG meetings. For each target not met, each working group must propose a concrete improvement plan to the CSR Committee. At the end of the year, CSR performance from the preceding year must be reported to the Board of Directors within four months. The 2015 CSR performance report was submitted to the Board of Directors in March 2016, for their reference.

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STEP 1Stakeholder identification

Compile issues, draw up annual targets and draft action plans

Track and review target completion on a quarterly basis

Compile the information submitted by each working group

Review execution and evaluate improvement plan for unfulfilled targets

Discuss and revise annual targets and draft action plans

Report CSR implementation results for the year

Evaluate annual targets and announce the implementation of action plans

CSR Committee Working Groups CSR administration unit

CSR Committee administration unit CSR Committee

CSR Committee Working Group Meeting Board of Directors

CSR Committee

4 Stakeholder identification and communicationThe opinions of stakeholders have served as the guiding principle for FFHC's sustainable development strategy since the first CSR Report was published in 2011. The process of compiling the Environmental (E), Social (S) and Governance (G) issues of concern to stakeholders is used to internalize the issues as the corporate sustainability targets. The themes and aspects of sustainability of concern to stakeholders also form the basis for authoring this report.

To promote better stakeholder communications, we embraced the spirit of the AA1000 Accountability Principle Standard by convening the CSR working groups on corporate governance, customer care, employee care, environmental sustainability and charity for joint discussion and identification of stakeholders. Group stakeholders were then divided into seven categories based on the experiences of each business unit and the finance industry as shown as follows.

EmployeesUnionRetired employees

Customers Media

ShareholdersInvestorsAnalysts

Suppliers G o v e r n m e n t a n d competent authorities

CommunityNon-profit organizationsNon-government organizationsAcademics and experts

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STEP 2

STEP 3

STEP 4

STEP 5

NEXT PAGE

Compilation of sustainability issues

Stage 1 screening

In stage 2, the issues were analyzed and a materiality analysis matrix created

Response to the issues were then compiled in accordance with the materiality analysis matrix

To ensure that the practice of CSR is in keeping with developing trends, CSR Committee working groups compiled 51 CSR sustainability issues of concern to domestic and overseas government/non-government organizations, financial industry peers and each stakeholder type.

Executives from group companies led by the president of FFHC examined each issue based on their "impact on group operations" and their "level of concern" to stakeholders to select 45 issues of concern to stakeholders.

The conveners, executive directors and members of each CSR Committee WG were then asked to use the stakeholder identification survey to evaluate the level of concern to each stakeholder and impact on group operations. The issues were then arranged by the level of stakeholder concern then used to produce the "List of Stakeholder Communication Channels and Issues of Concern" as well as the "Materiality Analysis Matrix."

After analyzing the 45 issues of concern using the matrix method, 3 issues of low stakeholder concern and low impact on group operations were eliminated. The 42 issues of medium-high concern/impact were chosen as the issues to respond to. A total of 43 material aspects (including 40 specific standard disclosures and 3 financial services sector-specific disclosures) were identified and approved by the "CSR Committee."

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STEP 6

STEP 7

Ensuring that the report encompasses all material aspects

Serving as the guiding principle for company planning on sustainability

The CSR Report is authored by each CSR Committee WG based on the approved disclosure indicators and material aspects then collated by the administrative unit before being submitted to the Chairman for review.

To ensure that the CSR implementation of FFHC reflects stakeholder expectations, the results of the above analysis are not only used for disclosure in the report but also serve as the guiding principle for company planning on sustainability.

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4-1 Materiality analysis matrix for issues of concern

Level of stakeholder concern

Impact on Group operations

High x Low

High x Moderate Moderate x High

Moderate x Moderate

Low x Moderate

Low x Low

Moderate x Low

High x High

Responding to the Greenhouse Gas Reduction and Management Act, and to the Indoor Air Quality Act

Complaints mechanismGreen service process innovation and improvementCommunication channelsGreen finance product innovation and improvementTraining and development

Shareholder equityCorporate governanceStrategy and managementProduct and service quality

Audit systemGreenhouse gas and carbon emissionsEnergy conservation and carbon reduction initiativesHuman rights protection Independence and professionalism of board directors Occupational safety and healthGreen partnersGreen purchasingCompensation and benefitsGreen responsible investmentFair and transparent purchasing

Care for female employees

Employee transportationRetired employee careCare for employees' next-of-kin

Implementation of inclusive financeEnvironmental impact from operationsWater resource managementProviding a friendly office environmentSupport for minoritiesEcological and environmental sustainability

Ethical corporate managementProtection of customer privacyProduct riskInformation disclosureRegulatory complianceRisk management

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16171819

3132

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363738394041

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434445

2021

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2627282930

789101112

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The 45 issues of concern selected by top executives are scored and then compiled into a materiality analysis with level of stakeholder concern as the X-axis and the impact on group operations as the Y-axis as shown below. Based on the materiality analysis matrix the three issues "Employee transportation", "Retired employee care" and "Dependent care" were eliminated due to their low level of stakeholder concern and low impact on group operations. The 42 issues listed as medium-high level of concern/impact were chosen for response on related management direction and execution and implementation outcomes.

Business performance and profitabilityEmployee conduct and integrityCustomer satisfaction improvement

Community buildingArt and cultural activitiesGreen initiativesCharitable donationsSporting promotion

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Relevant Liable Persons Communication channel and frequency Communication highlights and accomplishments

Employee complaint hotline, fax, e-mail/StandingEmployee forum on internal website/StandingMorning/evening business unit meetings/Ad hoc"Whistleblower section", "Supervisor mailbox", "President's mailbox" and "Ideas mailbox"/ StandingSexual harassment complaint hotline, fax, e-mail/StandingEmployer/employee meeting/MonthlyEmployee Welfare Committee, Labor Safety and Health Committee, Labor Pension Oversight Committee/QuarterlyRevision of collective bargaining agreement/Every 3 years

Explicitly require vendors to conform to labor and environmental laws and regulations in purchasing requirements and contracts / Review before tendering, Audit at and after contract signing

Convening of general shareholder meeting, publication of annual report and CSR report / YearlyBusiness performance report / Monthly and quarterlyHosting of investor seminars / QuarterlyVideos of investor seminars are concurrently published on our corporate website for viewing by investors / Standing and retained for one yearPublication of corporate governance, investor seminar presentations, financial information, press releases and related investors affairs in both English and Chinese on the corporate website / Ad HocTelephone and e-mail of the spokesperson and investor relations department available from the corporate website's investor services section / PermanentStakeholder survey in the corporate website's CSR section / PermanentAttend investor seminars at the invitation of securities brokers to communicate with investors / Ad hoc

Record profits/ Net after-tax profits in 2015 reached NT$15.962 billion, a new record.NT$23.5 billion capital increase by cash/ In response to the investor opinion that our company was weak on capital, a NT$23.5 billion capital increase by cash was carried out as part of our push to become a regional financial institution in Asia.Upgraded credit ratings/ Credit rating agencies such as Standard & Poor, Moody's and Taiwan Ratings upgraded our credit ratings. First Bank was also promoted to the ranks of A-list banks.

Green purchasing / Green purchasing amounted to NT$123.68 million and resulted in recognition for excellence in green purchasing

Substantial salary increases / First Bank introduced substantial salary increases of 3% across the board, First-Aviva Life Insurance was also recognized by the Financial Supervisory Commission as "2015 Benchmark Insurance Company for Salary Increases"3.15 times / Employees are paid an average monthly salary that is 3.15 times the statutory minimum, which places the Company among "Taiwan High Compensation 100 Index"3rd Collective Bargaining Agreement / First Bank and the Union held a signing ceremony for the 3rd collective bargaining agreement providing female employees with maternity leave 6 weeks before or within 14 weeks of the expected delivery date without requiring a doctor's certificate.

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Employees /Union /Retired employees

Shareholder /Investor /Analyst

Suppliers

4-2 List of stakeholder communication channels and issues of concern

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All of our Group subsidiaries have customer complaint channels such as business units, customer service hotlines and e-mail on the website / PermanentConduct customer satisfaction surveys through telephone surveys, e-mail surveys, webpage or outside survey firm / Ad hocAccounts, latest financial information, event information etc. / StandingStatement on Protection of Customers' Data / Ad hocHosting of wealth management and investment seminars, industrial park seminars; customer relationship management / Ad hocHosting of service role-model competitions to improve the quality of customer service/ Annual

Hosting of art exhibitions and concerts / RegularHosting of blood drives, beach clean-up, mountain clean-up, health seminar, rural charity health clinics and greet-the-dawn events / Ad hocSponsorship of tennis, table tennis, swimming, road run, baseball and other sporting activities / Ad hocCharity volunteer activities such as donations, show of support and environment/organic practices / Ad hocUK Carbon Disclosure Questionnaire/ AnnualParticipation in CSR-related foundations / Ad hoc

Digital Banking Division/ The Electronic Finance Division was reorganized into the Digital Banking Division with a team of professionals dedicated to upgrading our digital financial service capabilitiesDigital branch / "Digital Banking Experience Area" introduced in branches. The first "Virtual Teller Machine" in Taiwan was also installed to provide customers with modern, high-tech business premises and service.Improved insurance coverage for citizens/ Strong emphasis on insurance coverage for citizens saw First-Aviva Life Insurance recognized by the Financial Supervisory Committee as an "Improved Insurance Coverage for Citizens Program" insurance company for the 15th consecutive year.

Responding to the CDP / The Company's 2015 CDP score exceeded the worldwide industry averageStakeholder survey / A stakeholder survey was placed on the corporate website to gain a better understanding of stakeholder expectations and requirementsPromotion of corporate sustainability education / Became a founding member of the Center for Corporate Sustainability to help promote the sustainable development of Taiwanese enterprises

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Customers

Community /Non-profit organization /Non-government organization /Academics and experts

Transparency of tender information and publication on corporate website / Ad hocRequire companies that sell fund and insurance products through the bank to have compiled CSR reports or issued a CSR declaration / Before listing

3-Step supplier management process / In 2015 100% of new suppliers underwent screening on environmental and human rights.Foreign supplier management and evaluation / Starting in 2015 overseas sites began establishing supplier evaluation mechanisms as well. 280 foreign suppliers have been evaluated to date to help protect the local environment

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Internal

Head Office

Subsidiaries Shareholders /Investors / Analysts

Government and competent authorities

Medias

Customers Suppliers Community/Non-profit organizations/

Non-government organizations/

Academics and experts

A B C

G

D

H

E F

External


Participate in seminars, symposiums, public hearings, competitions and evaluations hosted by the competent authorities / Ad hocCompliance with the relevant laws and policies of the competent authorities and cooperate with their monitoring and inspections / Ad hocDisclose business-related information on the Market Observation Post System and corporate website / Ad hocParticipate in Earth Day and Meat-Free Day movement, and the promotion of environmental protection through advertising screens and tickers at business units / Standing

Participation in assessments, seminars and conferences / Ad hocEstablish a spokesperson and PR department for liaising purposes / StandingHosting of press conferences and issuing of press releases / Ad hoc

Commonwealth Magazine Corporate Citizenship Awards / 9th Place in the large enterprises categoryGlobal Views Corporate Social Responsibility Awards - Excellence Award in the Environmental Friendliness categoryWealth Magazine's Taiwan Financial Award / Financial Holding CSR Special Award

Corporate governance evaluation for listed companies / Proactive action on corporate governance evaluation indicators led to inclusion in the Top 10 for two consecutive yearsTaiwan Employment Creation 99 Index / Chosen for inclusion in the index for 6 consecutive years through creation of job opportunities recruiting of local employeesParticipation in government competitions / Actively took part in competitions organized by government agencies winning many awards including "Enterprise Environmental Award - Gold Award", and "National Environmental and Education Awards - Distinction Award in the Private Enterprise Division"

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Government and competent authorities

Media

4-3 Issues of concern and material aspects

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Information disclosureBusiness performance and profitabilityStrategy and managementShareholder equityIndependence and professionalism of board directors

Support for minoritiesImplementation of inclusive financeGreen finance product innovation and improvement

Energy conservation and carbon reduction initiatives

Water resource management

Greenhouse gas and carbon emissionsResponding to the Greenhouse Gas Reduction and Management Act, and to the Indoor Air Quality Act

Environmental impact from operations

Green purchasingGreen responsible investmentGreen partners

Economy/Economic performance

Economic/Indirect economic impact

Environment/Products and Services

Financial services sector disclosure/Product portfolio

Environment/Energy

Environment/Water

Environment/Emissions

Environment/Compliance

Environment/Environmental complaints mechanism

Environment/Wastewater and waste

Economy/Procurement practice

Environment/Overview

Society/Human rights/Investment

Financial services sector disclosure/Active ownership

Sustainable governance -First Performance - Rewarding shareholders p.22

Social harmony -First Care - Love for Taiwanp.112

Green finance -First Energy - Protecting the planetp.52





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C D F

G H

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C D F

G

E G

E F G

D E F

G

C D E

F G

Issue of concern G4 Material Aspect Internal | ExternalReport chapter & Corresponding page in Management Direction

18

A B

A B

A B

A B

A B

A B

E F G

H

E F G

E F G

E F G

E F G

E F G

H

Compensation and benefits

Training and development

Care for female employeesHuman rights protectionComplaints mechanismCommunication channels

Supply chain managementComplaints mechanism

Economy/Market image

Society/Labor practices/Employer-employee relations

Society/Labor practices/Gender equality on pay

Society/Labor practices/Training and education

Society/Labor practices/Employer-employee relations

Society/Labor practices/Employment diversity and equal opportunity

Society/Human rights/Coerced and compulsory labor

Society/Human rights/Indigenous rights

Society/Human rights/Assessment

Society/Human rights/Freedom of association and collective bargaining

Society/Human rights/Security practices

Society/Labor practices/Labor practices complaint mechanism

Environment/Supplier environmental assessment

Society/Labor practices/Supplier assessment for labor practices

Society/Human rights/Non-discrimination

Society/Human rights/Child labor

Society/Human rights/Supplier human rights assessment

Society/Human rights/Human rights complaint mechanism

Happy workplace -First Compensation - Diverse benefitsp.80

Happy workplace -First Training - Talent Cultivationp.97~98

Happy workplace -First Workplace - Friendly environmentp.91~92

Green finance -First Energy - Protecting the planetp.65~66

1

1

1234

12


A B

A B

A B

A B

C G H

D G

F G

F G

A B

A B

A B

A B

A B

A B

A B

A B

F G

F G

F G

F G

F G

F G

F G H

F G H

2015

4-3



munication

19

A B

A B

A B

A B

A B

A B

A B

A B

C F G

H

C D G

H

C D G

C D G

C D F

G

C D G

H

C D F

G

C D F

G

Occupational safety and healthProviding a friendly office environment

Community buildingCharitable donationsArt and cultural activitiesSporting promotionGreen initiatives

Fair and transparent purchasingEthical corporate managementEmployee conduct and integrity

Corporate governanceRegulatory complianceRisk management

Product riskProduct and service qualityGreen service process innovation and improvement

Customer satisfaction improvement

Protection of customer privacy

Society/Labor practices/Occupational safety and health

Society/Society/Local community

Society/Society/Anti-corruption

Society/Society/Public policy

Society/Society/Social compliance

Society/Society/Complaint mechanisms for impacts on society

Financial services sector disclosure/Audit

Society/Product liability/Regulatory compliance

Society/Product liability/Marketing communication

Society/Product liability/Product and service labeling

Society/Product liability/Customer privacy

Happy workplace -First Workplace - Friendly environmentp.92

Social harmony -First Care - Love for Taiwanp.112

Sustainable governance -First Integrity -Risk managementp.42~43

Sustainable governance -First Governance - Exceptional managementp.33

Green finance -First Security - Safeguarding customersp.72

Social harmony -First Service - The Customer Come Firstp.107

Green finance -First Security - Safeguarding customersp.73~74

1

2

12345

1

2

3

123

123

1

1


A B

A B

A B

C G

F G H

C D E

G

In 2015 our company's paid-in capital amounted to NTD 114.611 billion with consolidated assets of NTD 2.50 trill ion, consolidated income of NTD40.848 billion and net earnings after tax of NTD 16.006 billion. Return on Assets (ROA) in 2015 was 0.66%, Return on Equity (ROE) was 9.32% and Earnings Per Share (EPS) was NTD 1.55.

The Xiamen branch opened in 2015 Q2. All business locations in China have received approval to offer RMB services. In ASEAN, the Vientiane branch in Laos opened in 2015 Q1 while the Mean Chey branch and Chraoy Chongvar branch in Cambodia opened on January 27, 2016. Our ASEAN presence now covers the whole of the Indo-China Peninsula forming an extensive service network that will help expand our local financial market.

We are ahead of other domestic financial competitors in the transnational payment sector with four firsts. The spirit of "Growth", "Innovation", "Sustainability" and "Improvement" in business management and sales development shall continue to guide our expansion and steady growth. We wil l also continue to engage with society in different ways to enhance our corporate image on sustainability.

Connecting with the Asia-Pacific, integration and

transformation

Management results and economic performance


20

Strengthening corporate governance and enhancing

international image

Establishment of ethical corporate management

policy and strengthening internal controls

An Ethical Management Committee reporting directly to the Board of Directors was established to provide oversight of all ethical management matters and to ensure the effective implementation of the ethical management policy. Continued to receive recognition through domestic corporate governance awards. We were also ranked in the top ten by the corporate governance evaluation for TWSE/GTSM-listed companies for the second consecutive year.

Our directors have altogether accumulated 166.5 hours of learning on corporate governance-related courses. Attendance of the Board of Directors and functional committees (Audit Committee, Remuneration Committee and Ethical Management Committee) was 95% and 100% respectively.

The Ethical Management Principles and Code

of Conduct define the ethical management policy for all Group companies to follow. It also enhances the culture and development of ethical management throughout the Group. In 2015, an assessment of corruption risks was conducted by all group subsidiaries and their business locations. Anti-corruption training was also organized for all employees to enforce the three layers of internal controls. There were no punitive actions levied against the Group for corruption or violation of fair trading laws in 2015.

21

1

First Performance- Rewarding shareholders

1-1 Connecting with the Asia-Pacific and online financeThe Group has been actively expanding our overseas presence in recent years. The core subsidiary First Bank serves as the spearhead of our dual-pronged overseas development strategy of "west into China, south towards ASEAN." Our focus is on the finance opportunities in the Asia-Pacific region. To expand our financial service network in China which already includes the Shanghai branch, Chengdu Branch, and Shanghai Pilot FTZ sub-branch, the Xiamen branch (our third branch in China) opened its doors in 2015 Q2. All business locations in China have now received approval to offer RMB services. We can now provide Taiwanese companies and local customers with more complete financial services. The results have been quite positive to the south in ASEAN as well. The Vientiane branch in Laos opened in 2015 Q1 while the Mean Chey branch and Chraoy Chongvar branch in Cambodia opened on January 27, 2016. Our ASEAN presence now covers the whole of the Indo-China Peninsula forming an extensive service network that will help expand our local financial market, realize localized management and bring us closer to the goal of being "a regional financial institution in Asia."

Apart from the excellent progress in our overseas strategy, we are also ahead of our domestic competitors in the financial industry in the transnational payments sector. We have secured four firsts including: First domestic bank to receive regulator approval to apply for WeChat

Pay, first to secure WeChat Pay contract, first to offer WeChat Pay services, and first to activate an WeChat Official Account. In 2016 our Group's business strategy will continue with the "expansion in size and reinforcing of strengths" strategy from 2015. Further integration and transformation will take place with emerging FinTech used to enhance the "breath" and "depth" of traditional financial services. Through transnational integration, market penetration and digital finance, we will emphasize the spirit of "Growth", "Innovation", "Sustainability" and "Improvement" in business management and sales development. "Growth, Innovation and Sustainable Development" will serve as the core strategy of the Group in 2016. A strategy of "Growth and innovation" will be used to cater to industry transformation and upgrades in the domestic and overseas market as, the trend towards regional trade and economic integration, and the business opportunities derived from One Road, One Belt and RMB internationalization. In keeping with the trend towards digital finance, we will enhance our digital channels and transnational value chain services while continuing to expand our size and realize steady growth; at the same time, we will cultivate customer segments and channels while also engaging in business organization and capital restructuring. We will continue to engage with society in different ways and enhance our corporate image on sustainability in order to realize the goal of "sustainable improvement."

The slowdown in the global economy as well as recent fluctuations in the international financial market and rising geopolitical risks have all added increasing uncertainty to the international economy. In 2015, domestic regulators also began encouraging banks to invest in FinTech (financial technology). Many information service and network technology companies have therefore become a part of the FinTech industry as well. The finance industry chain has therefore expanded to include the information industry, changing not only the ecology of finance operations but also breathing more energy and diversity into the industry. Financial institutions must now think very carefully about their business strategy, future development trends and employee transformation.

1-1 Connecting with the Asia-Pacific and online finance

1-2 Group organization and business performance

1-3 Operating regions and countries

1-4 Shareholder structure

1-5 Financial and economic performance

22

69.65% 87.68% 95.64%

4.02%

-0.34%

0.65%

6.93%

4.32%

1.06%

Taiwan Banks

20.81%Asia Securities

9.53%

America Insurance

Other Other

Sort by revenue source By location By industry

Net interestrevenue

Other net income

Net fees and commissions

1-2 Group organization and business performanceLed by First Bank, the Group's core activities and profits all continued to grow steadily. Profits have surpassed the NTD10 billion mark for four consecutive years and achieved growth in the futures. Apart from completing an capital increase by cash of NTD23.52 billion and using the raised funds to strengthen First Bank's capital structure, expand its scale and increase its buying power overseas, the move also led to credit agencies such as Taiwan Ratings and Standard & Poor both upgrading the credit ratings of our Company, bank and securities subsidiaries; in channel integration, integrated marketing reported record profits once more and growth up to 23%.

In 2015 our company's paid-in capital amounted to NTD 114.611 billion with consolidated assets of NTD 2.50 trillion, consolidated income of NTD40.848 billion and net earnings after tax of NTD 16.006 billion. Earnings per share after tax was NTD1.55.

Features

China strategy

Channel integration

Overseas strategy

Raised NTD23.52 billion through issuance of 1.6 billion common stock for cash. The amount was re-invested in the banking subsidiary to supplement operating funds. Credit rating upgraded by Taiwan Ratings and Standard & Poor

Bank branch in Xiamen began operating in 2015 Q2Approval granted to all bank offices in China to offer RMB services

Integrated marketing delivers record profits and 23% growthGranted approval to conduct O2O transnational electronic payments as a financial institution. Outlook on transnational agency profits continues to improve

Vientiane bank branch opened in 2015 Q1Phnom Penh bank branch given approval to open Mean Chey and Chraoy Chongvar sub-branches which opened in January 2016Full bank coverage of the Indo-China PeninsulaTransnational platform boosts synergies from domestic and overseas sites


1-11-2

23

Implementedprojects

China strategy

Channel integration

Features

Overseas strategy

Organizational relationship chart

First Financial Holding Co., Ltd.

First Commercial Bank First Commercial Bank (U.S.A.)

FCB Leasing Co., Ltd.

First Insurance Agency Co., Ltd.

First Capital Management Inc.

FSC Asia Investment Limited

First Financial Assets Management (B.V.I.) Ltd.

First Financial Assets Management Co., Ltd.

First Securities Inc.

First Property & Casualty Insurance Agency Co., Ltd.

First Securities Investment Trust Co., Ltd.

First Venture Capital Co., Ltd.

First Financial Management Consulting Co., Ltd.

First-Aviva Life Insurance Co., Ltd.

Share Ratio: 100%

Shareholding: 8,624,400,000 shares

Original investment: NTD 94,289,806,000

Share Ratio: 100%

Shareholding: 7,000,000 shares

Original investment: USD 70,000,000

Share Ratio: 100%



Share Ratio: 100%


Original investment: NTD 50,000,000

Share Ratio: 100%



Share Ratio: 100%



Share Ratio: 100%


Share Ratio: 100%



Share Ratio: 100%



Share Ratio: 100%

Shareholding: 300,000 shares


Share Ratio: 100%



Share Ratio: 100%



Share Ratio: 100%



Share Ratio: 51%



24

First Financial Leasing (Chengdu) Ltd.

First Worldsec Securities Limited

FCBL Capital Int'l (B.V.I.) Ltd. FCB International Leasing Ltd.

FCB Lease (Xiamen) Ltd.

Share Ratio: 100%


Share Ratio: 100%


Original investment: HKD 66,000,000

Share Ratio: 100%



Share Ratio: 100%

Original investment: USD30,000,000

Share Ratio: 100%

Original investment: USD30,000,000


2015

1-2


25

Bank : Singapore Branch, Ho Chi Minh City Branch, Hanoi City Branch, Bangkok Office, Yangon Office, Phnom Penh Branch and its Chorm Chaov Sub-branch, Olympic Sub-branch, Chamkar Mon Sub-branch, Tuol Kouk Branch, Mean Chey Branch (opened in January 2016), Chraoy Chongvar Branch (opened in January 2016) and Vientiane Branch (Laos)

Bank: Tokyo Branch

Bank : London Branch Bank : Guam Branch, Brisbane Branch

Total sites

Europe Oceania

Southeast Asia

Northeast Asia

1-3 Operating regions and countries

FFHC Headquarters is located at No. 30, Sec. 1, Chongqing S. Rd., Taipei City. It has both local and overseas offices in Taiwan, Americas (U.S., Canada), China/Hong Kong/Macao (Hong Kong, Macao, Shanghai, Chengdu, Suzhou, Xiamen), Southeast Asia (Singapore, Vietnam, Thailand and other under-developed regions: Myanmar, Cambodia, Laos), Northeast Asia (Japan), Europe (U.K.), and Oceania (Guam, Australia). The Group has 9,210 employees in total.

Bank : Los Angeles branch, New York branch, Vancouver branch, and Toronto Branch; First Commercial Bank (U.S.A.) branch and its 7 sub-branches including the Alhambra Branch, City of Industry Branch, Silicon Valley Branch, Irvine Branch, Arcadia Branch, Artesia Branch and Fremont Branch

Bank : Hong Kong Branch, Macao Branch, Shanghai Branch, Shanghai Pilot FTZ Sub-branch, Chengdu Branch, Xiamen Branch

Securities : First Worldsec, First Worldsec Shanghai Office

Leasing : FCB Lease (Chengdu), FCB International Leasing (Suzhou), FCB Lease (Xiamen)

Americas

Asia

China/Hong Kong/Macao

Banks x 34 Leasing x 3Securities x 2

3926

First Bank is the second largest bank in Taiwan in terms of branch count and has 190 business locations throughout Taiwan. Our operations cover both urban and rural regions to communicate to the general public our brand image and service philosophy of "Close to Your Home." Sites are chosen with consideration to the local social and environmental impact. In remote regions such as Nantou, Pingtung, Hualien, Taitung and Penghu we have a total of 11 offices and 88 automatic teller machines (ATM) that can provide the full spectrum of financial services at any time.

First Bank branches in Taiwan

Above 50

30 ~ 50

10 ~ 30

Below 10

Banks x 34 Securities x 2 Leasing x 3

First Securities has 26 subsidiaries and 131 securities counters throughout Taiwan. In remote regions such as: Penghu, Nantou and Pingtung, we have a total of 6 offices for providing "personalized" investment services to the general public.

First-Aviva has established 20 insurance counters at First Bank business locations in Taipei, New Taipei, Taoyuan and Kaohsiung. These are on hand to answer customer inquiries on insurance and to provide convenient services.

Total sites

Business locations

190


2015

1-3


27

Note 1: Profit or loss after tax and earnings per share does not include non-controlling interests.Note 2: The financial data and ratios were all prepared in accordance with IFRS.Note 3: Employee welfare expenses were calculated against the "Taiwan High Compensation 100 Index".Note 4: Grandson companies not included in the consolidated financial company include First Financial AMC B.V.I., and FCB Leasing B.V.I.

7

1,865,682,345

16

1,582,050,112

697

2,483,986,636

884

875,709,123

279,807

4,653,678,165

Persons

Shares held

Persons

Shares heldPersons

Shares held

Persons

Shares held

Persons

Shares heldas of April 26, 2016

Financial institutions

Government institutions

Foreign institutions and

individuals

Shareholding ratio

Other institutional

Individuals

Our Group's net income after tax for 2014 and 2015 were NTD 14.085 billion and NTD 16.006 billion respectively.

Earnings per share were NTD 1.52 and NTD 1.55.

Share dividend/Tax amount

1-5 Financial and economic performance

21.67%

40.61%

16.28%

13.80%

7.64%

1-4 Shareholder structure

2015 2014

2,500,095,812

2,312,108,826

187,986,986

16,006,088

14,379,517

1,568.28

0.66

9.32

39.08

1.55

2,355,708,683

2,201,332,129

154,376,554

14,084,936

13,801,099

1,533.46

0.61

9.53

41.18

1.52

28

Unit : 1000NT

Unit : %

Operating ability

Profitability

Assets

Total liabilities

Shareholders equity

Profit or loss after tax

Employee welfare expenses

Average employee welfare expenses

ROA (%)

Return on Ordinary Shareholders' Equity (%)

Profit ratio (%)

Earnings per share (NTD)

Cash dividends per share (NTD)

Dividends per share (NTD)

Income tax paid (Thousand NTD)

Retained earnings (Thousand NTD)

0.95

0.45

2,473,401

38,461,016

0.7

0.65

2,224,157

35,553,081

2015 2014

2To uphold the spirit of "a century of tradition and innovative service" and carry on the values of an outstanding corporate culture, a brand new corporate identity system was launched to represent the image of a modern, open and lively financial institution. Gold and

Note: ROA and ROE in the above graph are based on the audited after-tax profits; it does not include EPS. If the impact of cash capital increase is excluded (capital increase baseline date: 2015/9/18) then actual ROE was 10.01% and EPS was NTD1.62.

Profit performance trends in the last five years - ROA, ROE, EPS

ink green have been chosen as the common colors of FFHC and subsidiaries. The two interlocking curves form the basic motif of a round copper coin. Gold symbolizes the accumulation of wealth, status and leadership, ink green symbolizes the circle of life and the sustainability of green finance. The square within the circle demonstrates the steadfastness and professionalism of the leaders.

2-1 Brand spirit and management

2-1 Brand spirit and management

2-2 Products and services

2-3 Credit rating

2-4 Participation in local and overseas organizations

First Brand - Innovative service

1-42-1


1.081.25 1.26

1.52

1.62

1.55

EPS

2011 2012 2013 2014 2015

0.36%

0.48%

0.66%0.61%

0.50%

ROA

2011 2012 2013 2014 2015

6.38%

7.73% 7.94%

9.53%10.01%

9.32%

ROE

2011 2012 2013 2014 2015

29

Its vertical orientation conveys readiness and a positive attitude. The three-dimensional symbol emphasizes the variety of group products and services as. It also gives our company's pioneering ambitions a modern touch.

Advances in network and communications technology means its application to cash flow services have become increasingly mature. Apart from using IT security technologies to ensure the confidentiality and integrity of transactions, it has also given added impetus to e-commerce, digital equipment upgrades and mobile payment. By using cross-industry alliances to extend cash flow services beyond physical channels and the development of new businesses to maintain the expandability of the system, a quick, convenient and secure virtual channel platform can be forged. Active physical and virtual integration along with the building of an innovative financial service ecology will reach out to young customers of the e-generation and cultivate the existing customer base. An innovative design, willing to experiment and readiness to take responsibility form a secure and sustainable environment that continues to revitalize the brand and shape FFHC's image as a professional and high-quality financial brand.

Pioneering strategy and innovative thinking are being used to promote charitable initiatives and set a good example of giving back to society. In keeping with the spirit of "local care", our subsidiaries are actively reaching out to disadvantaged groups, helping people realize their dreams, participating in charitable enterprises, embracing the spirit of cooperation, and realizing everyone's ideals on public welfare. Together, we are creating and communicating love while also incorporating gratitude, service, hope and growth into the careers of every employee. We also support environmental protection, environmentally sustainable development, and sowing the seeds of goodness in every corner to turn our Group into the No.1 brand in green finance.

2-2 Products and services

2-3 Credit rating

Use a framework where the First Bank subsidiary is the channel platform to expand services to the six main customer segments of SME, foreign exchange, financial planning, consumer finance and salary accounts. The "integration" philosophy will also be extended from "transnational integration" of domestic and overseas sites, to trans-channel and trans-product "integrated services." In keeping with the digital finance trend, the extension of FinTech applications as well as division of labor and integration of virtual-physical channels will be used to provide smart services and a superior finance experience. The convenience of financial service will be enhanced after strengthening all IT security measures. This will also ensure a consistent, high-quality service experience both online and offline.At the same time, big data and analysis of customers' consumption behavior will be leveraged to use innovative product designs and integrated marketing models (such as bank retirement trusts, reverse mortgages, investment funds, A+B+C life insurance models) that are cross-channel and cross-products will be used to satisfy the demand for total products throughout the life cycle of the target customer segment.

According to the 2015 credit rating reports issued by Taiwan Ratings, S&P and Moody's, our Group demonstrated in the financial industry a strong competitive advantage and stable business management; in the financial market, we have demonstrated very solid corporate fundamentals, an extensive customer base along with sound financial structure, risk control and excellent asset quality. The results from the long and short-term credit ratings as well as future outlook were as shown below:

30

2-4 Participation in local and overseas organizations

Our company and subsidiaries have joined the corresponding

industry associations for banking, securities, insurance, trusts,

investment trusts, investment consulting, industry agency,

venture capital and leasing to promote the development

of the domestic financial industry and enhance the overall

financial environment. Chairman Tsai is also the standing

director of the Bankers Association of the Republic of China

and The Bankers Association of Taipei. He has also been

the president of the Trust Association of R.O.C. since 2015.

Chairman Hsueh of First Securities Investment Trust is the

president of the Securities Investment Trust & Consulting

Association of the R.O.C.; at the same time, we also actively

participate in various domestic networking associations and

professional organizations to receive the latest economic

and financial information in Taiwan and from overseas. This

ensures the sustainable development of the Group's overall

business environment.

Note: Credit rating definitions can be found at the Moody’s (https://www.moodys.com), S&P (http://www.standardandpoors.com) and Taiwan Ratings (http://www.taiwanratings.com) websites.

In January 2013, First Bank became a member of BCSD

Taiwan with Chairman Tsai serving as a director to promote

and implement the CSR philosophy. This will help to realize

the goal of sustainable development through the promotion

of environmental protection and resource management, and

raise the quality of living in Taiwan. As there is a clear lack

of understanding on sustainability concepts and execution

talent among local companies, our Company donated

NTD280,000 in 2015 towards the establishment of the

Center for Corporate Sustainability. Chairman Tsai became

one of the founding directors as well and is actively involved

in helping the Center with promoting corporate sustainability

education and hosting international forums. We are

therefore contributing to the popularization of corporate

sustainability/CSR values and encouraging local companies

to embrace sustainable development.

1. Bankers Association of the Republic of China2. The Bankers Association of Taipei3. Center for Corporate Sustainability

1. Bankers Association of the Republic of China2. Trust Association of R.O.C.3. Securities Investment Trust and Consulting Association of the R.O.C.4. Taiwan Securities Association5. R.O.C. Bills Finance Association6. The Bankers Association of Taipei7. Asian Pacific Bankers Council8. Asian Bankers Association9. ICC Commercial Crime Services10. European Bank for Reconstruction and Development (EBRD)11. Taiwan Russia Association12. India-Taipei Association13. Taiwan Contact Center Development Association14. Turnaround Management Association15. Small and Medium Enterprise Guarantee Fund

First Financial

Holding

First Bank

Company Name Industry/Corporate sustainability non-government organization


2015

2-12-22-32-4


2015.10.5

2015.10.5

2015.6.9

31

Taiwan Ratings

S&P

Moody’s

twA-1+

A-3

-

twAA-

BBB

A3

Stable

Stable

Positive

Short-term Long-term Outlook Rating date

First Bank

First-Aviva LifeInsurance

First Securities

First Securities Investment Trust

First P&C Insurance Agency

First Venture Capital

Company Name

16. Agricultural Credit Guarantee Fund17. Chinese National Association of Industry and Commerce, Taiwan18. Joint Credit Information Center19. Taiwan Economic Association20. Factors Chain International21. National Association of Small & Medium Enterprises, R.O.C.22. Financial Planning Association of Taiwan23. Chinese International Economic Cooperation Association24. National Credit Card Center25. Overseas Credit Guarantee Fund (Taiwan)26. Chinese Financial Research Association27. Business Council for Sustainable Development of Taiwan (BCSD-Taiwan)28. Taiwan Energy Service Association (TESA)29. Chinese Taipei Table Tennis Association30. IT-enabled Services Management Association (itSMA)31. Taiwan Internet and E-Commerce Association (TiEA)32. The Institute of Internal Auditors, R.O.C.

1. The Life Insurance Association of the Republic of China2. Life Office Management Association (LOMA)3. The Actuarial Institute of the Republic of China4. Taipei Bar Association5. Society of Actuaries6. American Academy of Actuaries7. American Club Taipei (ACC)8. European Chamber of Commerce Taiwan (ECCT)9. British Chamber of Commerce in Taipei (BCCT)10. Taiwan Insurance Institute11. Taiwan Insurance Law Association12. Association of Certified Fraud Examiner13. Information Systems Audit and Control Association (ISACA)14. The Institute of Internal Auditors, R.O.C.15. Life Insurance Educational Foundation

1. Taiwan Securities Association2. Chinese National Futures Association3. Securities Investment Trust and Consulting Association of the R.O.C.4. Securities Association of China5. Shanghai Securities Association6. Shanghai Association of Taiwan

1. Securities Investment Trust and Consulting Association of the R.O.C.2. Pension Fund Association, R.O.C.

The Insurance Agency Association of the Republic of China

Taiwan Venture Capital Association

Industry/Corporate sustainability non-government organization

32

3

First Governance- Exceptional management

In response to international developments on anti-corruption, supply chain management, protection of business secrets, fair competition and whistle blower schemes, at the end of 2015 and beginning of 2015, the competent authority amended the "Ethical Corporate Management Best Practice Principles for TWSE/GTSM-Listed Companies" and "XXX Co., Ltd. Procedures for Ethical Management and Guidelines for Conduct" sample template. Our Company drew on these sources in defining our own "Ethical Management Principles and Code of Conduct" to serve as the guide ethical management by all Group subsidiaries. An "Ethical Management Committee" reporting to the Board of Directors was also established to provide oversight of all ethical management matters. The Committee is made up of all independent directors and it reports regularly to the Board on the company's implementation of the ethical management policy and reviews corrective actions to ensure that the policy is being effectively implemented; the Audit Division has also defined and published the "Guidelines for Handling of Whistleblower Cases" on the internal website to establish an open and transparent whistleblower scheme.

In 2015, our Company not only continued to receive domestic governance-related awards such as the

3-1 Board members

3-2 Operation of the Shareholders' Meeting and Board of Directors

3-3 Improving the professional competencies of the directors

3-4 Functional Committees of the Board

3-5 Compensation policy and its link to business performance and future risks

Commonwealth Magazine "Commonwealth Corporate Citizenship Award", the Taiwan Institute for Sustainable Energy's "TCSA - Transparency and Integrity Award" and Wealth Magazine's "Consumer Financial Brands & FHC CSR Award - Judges' Award". We also received the British Standards Institution's (BSI) "Environmental Sustainability Standards Annual Meeting - Sustainable Governance Award" and were once again in the top ten of the 2nd Corporate Governance Assessment for listed companies.

In 2016, apart from continuing to publish the bilingual version of the BSI-certified 2015 CR Report based on the GRI G4 Guidelines to provide local and foreign investors with equal access to information, we also plan to define regulations governing board performance assessments to strengthen the operational efficiency of the Board of Directors, enhance the Board's function and performance, and consider taking part in the Dow Jones Sustainability Indexes (DJSI) to improve our internationalization image. The corporate governance assessment indicators used by the TWSE will also serve as the top guiding principles in further improvements to corporate governance operations.


2015

33

FFHC Corporate Governance Structure

Ethical Management Shareholders’

Board of Directors

Chairman

President

Vice President

Strategic Planning Division

Corporate Governance

Business

Business Development

Division

Risk Management DivisionTechnology DivisionDivision

Compliance and Legal Division

AuditDivision

EVPChief Compliance

Chief Auditor

President

Strategy Development

Risk Management Business Decisions

IT Development

34


2015

3-1


3-1 Board members

The 5th Board of Directors of our Company consists of 12 directors and 3 independent directors. 9 of the directors are made up representatives appointed by key shareholders the Ministry of Finance and the Bank of Taiwan which hold in excess of 5% shares. 4 of the directors and 1 independent director are women so they account for one-third of the Board membership. The directors serve for a term of 3 years. 4 are between 41 to 50 years of age and 11 are over 51 years of age. Directors possess extensive professional knowledge, business management ability and experience in fields such as banking, economics, accounting, insurance, statistics, finance, law and labor. The key shareholders Ministry of Finance and the Bank of Taiwan both regularly review and assess their board delegates.

Age Distribution of Directors Gender Distribution of Directors

73%Over the age of 51,11 people

27%41 – 50 years, 4 people

67%

Men, 10 people

33%

Women, 5 people

Title

Chairman

Name

Ching-Nian Tsai (MOF representative)

Academic background

M.S., Industrial Management, National Cheng Kung University

Chief, Financial Inspection, Bureau of Monetary Affairs, MOF; Chief Secretary and Commissioner of Securities and Futures Institute, MOF; Deputy Director-General, National Treasury Administration, MOF; Deputy Director, Bureau of Monetary Affairs, MOF; President, The Export-Import Bank of the Republic of China; Director-General, National Treasury Administration, MOF; President, Land Bank of Taiwan; Chairman, Taiwan Business Bank; Chairman, Taiwan Futures Exchange; Chairman, First Commercial Bank (U.S.A.)

Chairman, First Commercial Bank; Chairman, First Education Foundation; President of the Trust Association of R.O.C.

Current role in financial holding company and other companies

Director and President

Mei-Ling Cheng (MOFrepresentative)

B.S. Department of Business, National Taiwan University

Head of FFHC Corporate Planning Dept.; Head of Financial Services of First Bank; Manager and Vice President of First Bank Yuanshan Branch; Chairman of First Commercial Bank (U.S.A.); Director of First Insurance Agency; Director of First Securities Investment Trust; First chief commissioner of Financial Planning Committee of the Bankers Association

Director, First Bank; Director, Taiwan Asset Management Corp.; Director, First Education Foundation

41~5051

35

Director

Director

Director

Hsien-Feng Lee (MOF representative)

Yi-Hsin Wang

(MOF

representative)

Hung-Chi Huang

(MOF

representative)

Ph.D., Economics, Bielefeld University, Germany

Advisory Committee Consultant, Council for Economic Planning and Development, Executive Yuan; Director, Farmers Bank of ChinaCurrent: Associate Professor of Economics, National Taiwan University; Director, Public Economic Policy Research Center, National Taiwan University

Ph.D. in Accounting from the University of Kentucky, U.S.A.

Associate Professor and Professor of Accounting at National Chung Hsing University; Editor-in-Chief, Editorial Committee, Institute of Internal Auditors, ROC (Taiwan); Executive Director, Institute of Internal Auditors, ROC (Taiwan); Professor, Dean of Library and Vice President, National Taipei UniversityCurrent: Professor of Accounting, National Taipei University

Ph.D. in Actuarial Science, Heriot-Watt University, U.K.

Actuarial Analyst, Actuarial Department, Cathay Life Insurance Company; Associate Manager, Tri-Better Enterprise Company; Reviewer of Insurance Products, Financial Supervision Commission, Executive Yuan; Consultant, Taiwan Civil Service Pension Fund Management Board; Advisory Committee Consultant of Risk Management Committee, Chunghwa Post; Dean & Professor, Dept. of Risk Management and Insurance, National Chengchi UniversityCurrent: Dean & Professor, Dept. of Risk Management and Insurance, National Chengchi University

Executive Director, First Bank; Director, Yuanta-Polaris Research Institute

Independent Director, BestCom Infotech Corporation; Independent Director, Transcend Information, Inc.

Director, First-Aviva Life Insurance Co.

Director Po-Chiao Chou (MOF representative)

B.S. Accounting, National Cheng Kung University

General Manager, Chief of Accounting Office, of First Bank West Tainan Branch, Head of General Affairs Dept. Vice President, First Bank West Tainan Branch; Advisor and of Head of Risk Mgmt. Div., Advisor and Head of Administration Div., Vice President, First Financial Holding; Chairman, First Venture Capital; Chairman, First Consulting Co., Ltd.; Supervisor, First Securities; Director, First Commercial Bank (U.S.A.); Director, First-Aviva Life Insurance

Executive Director and President, First Bank; Chairman of First Commercial Bank (U.S.A.); Chairman, First Education Foundation; Director, Taiwan Small Business Integrated Assistance Center; Director, Taipei Financial Center Corp.

Title Name Academic backgroundCurrent role in financial holding company and other companies

36


2015

3-1


Director

Director

Director

Director

Director

Feng-Ming Hao (MOF representative)

Hsiao-Ling Chen (Bank of Taiwan representative)

Tien-Yuan Chen (Golden Garden Investment representative)

Chi-Hsun Chang

Hsing-Jung Lo (Bank of Taiwan representative)

Ph.D. in Labor and Social Law, Paris II Pantheon-Assas University

Professor of Law, Head of Department, Dean of General Affairs, Dean of College of Law, and Vice President, National Chung Cheng University; Guest Professor, Academy for the Judiciary; Member, Bar Examination Committee, Ministry of Examination; Member, Labor Insurance Dispute Settlement Committee of Ministry of Labor Affairs, Executive Yuan; Member, National Health Insurance Fund Management Committee; Deputy Minister of Labor, Executive YuanCurrent: Vice Minister, Ministry of Labor

MA. in Economics, National Taiwan University

Section Chief, Ministry of Finance; Section Chief, Deputy Director, and Director, National Treasury Administration, Ministry of FinanceCurrent: Section Chief, National Treasury Administration, Ministry of Finance; Member, Water Resources Control Board, Ministry of Economic Affairs; Supervisor, Relief Disaster Foundation

B.A. Foreign Languages and Literature, Tamkang University

Chairman, Taiwan Coca-Cola Co.; Chairman, Golden Garden Investment Co.

B.S. International Trade, Tamkang University

Supervisor, Optimum Care International Tech Inc.; Director and President, Magna Central Company; Head of Sales Dept., Nan Ya Plastics Corporation

Bachelor's degree, Department of Accounting, National Chung Hsing University

Section Chief and Deputy Director of the National Treasury Administration, Ministry of Finance, Deputy Director of Finance Department, New Taipei City Current: Team Captain, National Treasury Administration, MOF

N/A

N/A

Executive Director, First Bank; Chairman, Golden Garden Investment Co.; Chairman, Golden Gate Motor Co.; Chairman, Golden Gate Investment Co.; Director, First Education Foundation

Chairman and President, Unitop Co., Ltd.

N/A

37

Independent

director

Independent

director

Shyan-Yuan Lee

Hui-Ya Shen

Ph.D. Finance, Columbia University at NYC

Associate Professor, Department of Finance, National Taiwan University; Commissioner, Financial Supervisory Commission; Public Interest Director, TWSE; Independent Director, International Bills Finance CorporationCurrent: Professor, Department of Finance, National Taiwan University

MA. in Law, National Chung Hsing University

Lecturer, Department of Law, and Department of Trade and Finance, Fu Jen Catholic University; Supervisor, Radio Taiwan International; Committee Member, Securities and Futures Investors Protection Center; Consultant, Taiwan Civil Service Pension Fund Management BoardCurrent: Attorney, Chang Chun Attorneys-at-Law

Independent Director, TransAsia Airways Corporation

Independent Director, Taiwan Fertilizer Co., Ltd.

Director

Independent

director

An-Fu Chen (Global Investment Co., Ltd. representative)

Hao-Min Zhu

B.S., Pharmacy, Taipei Medical University

Director, Mingtai Fire & Marine Insurance Company; Vice President, TransGlobe Life Insurance Inc.; Vice President, Transamerica Occidental Life Insurance Co.

Ph.D. in Economics, Brown University, U.S.A.

Head of Finance Department, National Cheng Chi University; President, CTBC Financial Management College; Director, Taiwan Futures Exchange; Executive Director, Export-Import Bank of the ROC; director, Taiwan Financial Holding Company; Executive Director, Land Bank of TaiwanCurrent: Professor, National Cheng Chi University

Chairman, Global Investment Co., Ltd.; Director, Golden Rise Limited

Standing independent director, First Bank; Independent director, Wah Lee Industrial Corp.

Title Name Academic backgroundCurrent role in financial holding company and other companies

3-2 Operation of the Shareholders' Meeting and Board of Directors

During the 2015 general shareholders' meeting, the company reported our 2014 business performance and accounts verification process. The 2014 business report, consolidated report, distribution of dividends and conversion of earnings into new stock, and removal of non-compete clauses for the 5th Board of Directors were also voted on during the meeting. We responded to shareholder questions and adopted the candidate nomination system for the election of the 5th Board of Directors. A total of 12 directors and 3 independent directors were eventually elected for the 5th Board of

38


2015

3-2


Directors. Our company introduced electronic voting during the general shareholders' meeting in 2013. Utilization has exceeded 30% after three consecutive years of use, demonstrating our company's commitment to realizing shareholder activism.

Routine meetings of our Company's Board of Directors are convened once every month. Directors are also notified of the agenda 7 days in advance so issues can be properly discussed and opinions exchanged during the meeting. In 2015, the Board was convened 15 times and average attendance by all directors exceeded 95%. This reflected the active participation of directors in the company's management and their commitment to planning the company's future development. In 2015, the Board formulated or amended important company regulations such as the implementation rules for continuing education of directors, HR management regulations, work rules, common marketing rules for subsidiaries, asset ass and loss preparation guidelines, accounting policy for international financial reporting standards, budgeting and execution rules, employee compensation rules, internal audit system implementation rules, rules governing loans and transactions between the FFHC and subsidiaries with stakeholders, organic regulations of the ethical management committee, establishment rules of the labor pension fund supervisory committee, rules governing appointment of FFHC personnel to subsidiaries, procedure for suspension and resumption of trading, internal control system, Ethical Management Principles and Code of Conduct, and group national risk management rules; it reviewed the offer conditions, baseline date and pricing for the 2015 capital increase by cash, the 2015 final accounts and 2016 budget, the audit plan and retention of chartered accountants, and regularly reviewed the company's operations as well as the implementation of internal controls. Where a director's personal interests or the interests of the legal entity they represent may cause harm to company interests, all directors exercised a high level of self-discipline in excusing themselves from the subsequent discussion and voting.

Board Meeting Time Name of Director Motion Reason for conflict of interest and voting

2015.02.1233rd meeting of the 4th Board of Directors

Director Po-Chiao Chou

Change to subs id i a ry director

Director Po-Chiao Chou was the subject of the motion so excused himself from the discussion and vote.

Director Tien-Yuan Chen and Director An-Fu Chen were the subjects of the motion so they excused themselves from the discussion and vote.

As director and president, Mei-Ling Cheng was the subject of this motion so excused herself from the discussion and vote.

As director and president, Mei-Ling Cheng was the subject of this motion so excused herself from the discussion and vote.

Independent director Shyan-Yuan Lee, independent director Hao-Min Zhu and independent director Hui-Ya Shen were the subjects of this motion so excused themselves from the discussion and vote.

Removal of non-compete provisions for the Company 5th Board of Directors

Remuneration adjustment for company executives in 2015

Appointment of Company president

Salary adjustments for the Company management

Appointing the members of the Company's 3rd Remuneration Committee

Director Tien-Yuan Chen, Director An-Fu Chen

Director and President Mei-Ling Cheng

Director and President Mei-Ling Cheng

Independent director Shyan-YuanLee, Independentdirector Hao-Min Zhu, Independent director Hui-Ya Shen

2015.04.3035th meeting ofthe 4th Board of Directors

2015.05.2136th meeting of the 4th Board of Directors

2015.06.291st Meeting of the 5th Board of Directors

39

3-3 Improving the professional competencies of the directors

3-4 Functional Committees of the Board

To strengthen the professional know-how of the Company's board directors and enhance the effectiveness of corporate governance, the Company adhered to the "Directions for the Implementation of Continuing Education Directors and Supervisors for TWSE Listed and TPEx Listed Companies" and our company's "Implementation rules for continuing education of directors" which required new or returning directors to undertake 12 hours and 6 hours of continuing education training each year respectively. Our directors actively took part in corporate governance-related training courses and seminars organized by professional institutions and completed a 166.5 hours of training in total during 2015.

The Taiwan Academy of Banking and Finance was commissioned to host two "Group Board of Directors and Supervisors Meeting Practices and Corporate Governance Class" sessions in December 2015

To enhance the corporate governance structure of the Company, the "Regulations Governing the Scope of Duties for Independent Directors" was defined in 2009. Three independent directors were elected in the same year during the general shareholders' meeting. The "Remuneration Committee" subsequently established in 2011, the "Audit Committee" established in 2012, and the "Ethical Management Committee" established in 2015 are all functional committees made up of all (3) independent directors. The committees issue decisions on potential conflicts of interest such as remuneration for directors and managers, financial reports and ethical management policy.

defining and regularly reviewing the policies and systems for evaluating executive performance as well as the remuneration policy, system, standard and structure. The remuneration of the directors and executives are therefore regularly reviewed and recommendations.

Assist the Board of Directors in its supervisory duties, and executing the duties specified by the Company Act and the Securities and Exchange Act. Items for review include the company’s financial statements, transactions for major assets or derivatives, offering or issuing equity-type securities, appointment, dismissal, and remuneration of CPAs, and the appointment and dismissal of financial, accounting, and internal audit managers.

Establishment and amendment of the Ethical Corporate Management policy at the company, and makes regular reports to the Board of Directors regarding the company’s implementation of ethical corporate management, as well as any necessary corrections.

Primary responsibilities of each functional committee

The number of times each functional committee was convened and the attendance rate of committee members in 2015 were:

RemunerationCommittee

Audit Committee

Ethical corporate practicesCommittee

Remuneration Committee Audit Committee Ethical corporate practices Committee

No. of meetings:4Committee attendance:100%



40


2015

3-33-43-5


3-5 Compensation policy and its link to business performance and future risks

(1) Compensation package: Compensation for company directors include director's remuneration, monthly payment, health exam costs (reimbursement of actual costs up to NTD35,000) and travel costs (reimbursement of actual costs).(2) Compensation policy, decision procedure and its link to business performance and future risks:

(1) Compensation package: Compensation for the president and vice presidents includes the monthly salary, management allowance, professional allowance, employee compensation, bonuses, housing allowance, health exam costs and separation/pension payments.(2) Compensation policy, decision procedure and its link to business performance and future risks: To attract and retain quality talent for the Company and increase Group revenues, FFHC's employee salary, bonuses and payment standards are reviewed by the Remuneration Committee and Board of Directors. The amount of employee bonuses is based on a combination of profitability indicators, common marketing indicators, cost-reduction indicators, risk indicators and strategic indicators.Under Article 34, Paragraph 1 of the Articles of Incorporation, if the Company was profitable during the year then no more than 0.02% to 0.15% of the profits may be allocated as employees' compensation after deducting the employee and directors' bonuses from the pre-tax profits. Actual amount is based on the target completion rate in terms of pre-tax profits, earnings per share after tax, net yield and return on assets.In accordance with the aforementioned procedure, compensation for the Company's president and vice president are regularly assessed by the Remuneration Committee and recommendations made to the Board.

Director

President and Vice Presidents

Monthly payment:(a) On May 16, 2003, an extraordinary shareholders' meeting approved the allocation of NTD2,400,000 per month for directors' compensation. The Board was although authorized to set the compensation standard for each director within that amount; on the same day, the 6th Meeting of the 1st Board of Directors approved a monthly payment of NTD20,000 per person the Chairman's compensation is to be based on the total amount payable to the president multiplied by a factor of 1.25. Since the founding of the Company however, all past chairpersons also held the position Chairman of First Bank and opted to receive the First Bank chairman's compensation so did not collect the compensation for FFHC chairman.(b) Our Company added 3 independent directors starting with the 3rd Board of Directors on May 22, 2009. At the 41st Meeting of the 2nd Board of Directors, their monthly payment was set as NTD50,000 per person; the Company subsequently established the "Remuneration Committee Organic Regulations" on August 25, 2011, to establish a Remuneration Committee made up of all independent directors. On September 1, 2011, the monthly payment to independent directors was increased to NTD60,000 per person and this was approved by the 28th Meeting of the 3rd Board of Directors. Director's compensation: Under Article 34, Paragraph 1 of the Articles of Incorporation, if the Company was profitable during the year then no more than 1% of the profits may be allocated as directors' compensation after deducting the employee and directors' bonuses from the pre-tax profits.However, a sum shall be set aside in advance to pay down any outstanding cumulative losses. In addition, under Article 4 of the Regulations Governing the Scope of Duties for Independent Directors, the only compensation that independent directors receive is the fixed monthly payment; the Company's directors' compensation for 2015 was also proposed by the Remuneration Committee in accordance with the rules and reviewed by the Board before being reported to the general shareholders' meeting.

41

4

First Integrity- Risk management

4-1 Ethical management policy and execution

4-2 Internal controls

4-1 Ethical management policy and execution

In 2015 our Company established the "Ethical Management Committee" under the Board of Directors to oversee all ethical management matters. The first committee was made up of all (3) independent directors and its responsibility included the defining or amending of the ethical management policy, and reporting regularly to the Board on current execution to ensure sound ethical management and that business practices adhere to the principles of fairness, honesty, trust and transparency. The goal is to establish a corporate culture of ethical management and active prevention of unethical behavior. The "Ethical Management Principles and Code of Conduct " (hereafter referred to as the "Code of Conduct") was subsequently approved by the Ethical Management Committee and the Board as the guiding policy on ethical management for all Group companies; our Audit Division has also drawn up the "Guidelines for Handling of Whistleblower Cases" based on the Code of Conduct. A whistleblower section has been set up on the internal website as well to establish an open and transparent whistleblower scheme.

The "Code of Conduct" serves as the guiding policy on ethical management for all Group subsidiaries. It applies to all affiliated organizations and the First Education Foundation. Apart from explicitly defining the types of unethical behavior and benefits, the management organization and duties for ethical management, prohibition on the providing of accepting of improper benefits, conflicts of interest, ban on insider training, and adherence to policy and regulations during business transactions, all departments are also expected to take precautions against the following unethical behaviors based on their particular responsibilities. They must also establish a concrete whistleblower scheme, incentive measures and procedures for dealing with unethical behavior.

( 1 ) Offering and accepting bribes: Do not directly or indirectly provide, promise, request or accept any improper benefits from clients, agents, contractors, suppliers, public servants, or other stakeholders during the course of business.( 2 ) Political donations: No political contributions may be made to political parties, political organizations or political candidates.

42


2015

4-1


( 3 ) Improper charity donations or sponsorships: Charity donations or sponsorships should adhere to the local laws and internal procedures. It may not be used as an alternative form of bribery; decision-making should be documented in writing; all returns from the sponsorship should be clear and reasonable. It may not be for people who have business dealings with Group companies, or people with interests linked to personnel at each Company.( 4 ) Provision or acceptance of unreasonable gifts, hospitality or other improper benefits: Do not directly or indirectly offer or accept any unreasonable presents, hospitality or other improper benefits for the sake of establishing business relationships or influencing commercial transactions.( 5 ) Violation of business confidentiality, trademarks, patents, copyright or other intellectual property rights: Obey intellectual property laws, the internal regulations and contract terms of Group companies and the organization; do not use, reveal, dispose of, destroy or engage in other behaviors that violate intellectual property rights without the permission of the legal owner.( 6 ) Engaging in unfair competition: Obey the Fair Trading Act and related competition laws during business activities. Do not engage in price-fixing, bid-rigging, limiting output or quotas, or using the distribution of customers, suppliers, business areas or business types to share or partition the market.( 7 ) Damage the rights of consumers or other stakeholders during the development, purchasing, delivery or sale of products and services: Collect and understand the applicable laws and international standards during the development, purchasing, delivery or sale of products and services. The relevant precautions should be compiled and published for the reference of all Company personnel, ensuring the transparency and safety of products and services; a policy to protect consumers or other stakeholders should be published on the corporate website so that our products and services does not directly or indirectly harm the rights of consumers or other stakeholders. If there is sufficient evidence that a product or service may harm the interests of consumers or other stakeholders, delivery of the product or service should ceased immediately and corrective action proposed.

Each company should conduct training on compliance, anti-money laundering, IT security and risk management using anti-corruption moral principles and past cases as an example. In 2015, 100% of employees underwent anti-corruption training. At First Bank for example, employees of all levels undergo related training:

( 1 ) New employees: Arranged to attend courses on "Professional Ethics and Legal Compliance for Finance Professionals", "Anti-Money Laundering Education", "Personal Information Protection Act" and "Business Operating Guidelines". New employees at overseas branches take online courses on "Professional Ethics and Legal Compliance for Finance Professionals" and "Personal Information Protection Act" in English.( 2 ) General bank employees: Arranged to attend courses "Employee Compliance Education", "Ant-Money Laundering Prevention Education", "Personal Information Protection Act" and "Business Operating Guidelines".( 3 ) Management: Arranged to attend courses such as "Compliance Education for Managers", "Analysis of Financial Fraud", "Self-Inspection Camp for Managers", "Regulatory Compliance Advocacy Workshop", "Personal Information Protection Act" and "Business Operating Guidelines".

Each company also uses educational posters and corruption hotlines to strengthen employee ethics management and prevent fraud, managers at First Bank conduct monthly assessments on their subordinates' lifestyle, finance and work. Poorly-performing employees receive immediate counseling. First Bank also has a "Compulsory Leave System" in place with regular rotations and changes in position to prevent fraud.

43

Our Company's business management units draw up their own audit contents and procedures based on their own risk characteristics and control points. Self-inspections and internal audits are also conducted on a regular basis. If aberrations from company policy, operating procedure, targets or expected standards are found during routine operations, the necessary corrective actions are to be taken in a timely manner to ensure that the company's business management follows the planned path. In 2015, an assessment of corruption risks was conducted by all group subsidiaries and their business locations. The overseas locations of First Bank identified significant risks from money-laundering and terrorism financing. An Anti-Money Laundering (AML) system has now been installed to prevent and manage such risks. There were no punitive actions levied against the Group for corruption or violation of fair trading laws in 2015.

1 Compliance system

Even as the First Financial Group seeks to maximize returns for shareholders, we also continue to expand our business with a particular emphasis on our overseas presence. In addition to complying the laws and regulations, we are also continuing to monitor the effectiveness of our compliance system and to strengthen compliance management at our overseas locations. In 2015 for example, First Bank announced a tiered compliance management scheme for overseas units. Each overseas unit is assigned one of three grades based on whether they had any major compliance problems in recent years, number of compliance deficiencies identified by local regulators, and the intensity of regulatory management. The range of businesses that unit managers can oversee is then limited by the compliance grade. In addition to the branch reporting its compliance implementation to the regulator in accordance with the law, special reports must be provided

First line of defense Internal inspection by

sales unit

Second line of defense Sound compliance

and risk management system

Third line of defense Provide an internal

control environment with risk management and

independent examination of all business operations

4-2 Internal controls

Our company has established internal controls and audit systems in accordance with the "Implementation Rules of Internal

Audit and Internal Control System of Financial Holding Companies and Banking Industries". The basic goal of the internal

control system is to promote the sound management of our company. It is to be followed by the Board, management and all

employees to ensure the achievement of operating results, the reliability of financial reports and compliance with relevant

regulations through reasonable means.

Our company's internal control system is a continuous process that encompasses all of our business activities. It is not the

responsibility of specific units or departments, nor limited to the management only. Instead, it is based upon continuous

promotion and execution by all employees. It is regularly reviewed each year with improvements submitted to the Board for

review.

44

First line of defense - Internal inspection by sales unit

Second line of defense - Sound compliance and risk management system


2015

4-2


Major regulatory or policy changes

In accordance with Article 37, Paragraph 3 of the "Implementation Rules of Internal Audit and Internal Control System of Financial Holding Companies and Banking Industries":"The risk management schemes of financial holding companies should include the following items: Define an overall anti-money laundering and counter-terrorist financing plan for the financial holding company and its subsidiaries. This includes internal information sharing policies and procedures within the Group aimed at combating money laundering and terrorist financing."

According to Jin-Guan-Yin-Fa Letter No. 10300328890 (2014/12/30) (banking industry), Jin-Guan-Cheng-Fa Letter No. 1040008757 (2015/4/7) (Securities brokers), Jin-Guan-Cheng-Fa Letter No. 1040024657 (2015/7/8) (Futures industry), Jin-Guan-Cheng-Fa Letter No. 1040012690 (Investment trust industry), and Jin-Guan-Bao-Zhong Letter No. 10400054690 (2015/7/13) (Insurance industry) issued by the Financial Supervisory Commission, the subsidiaries First Bank, First Securities, First Securities Investment Trust, First-Aviva and First Insurance Agency had completed the necessary planning, implementation and management measures for anti-money laundering and counter-terrorist financing on 2015/12/31 and 2016/1/31 respectively; the first company money-laundering and terrorist-financing risk

On December 3, 2015, our Company defined the "Anti-Money Laundering and Counter-Terrorist Financing Plan for FFHC and Subsidiaries". The plan includes internal information sharing policies and procedures within the Group aimed at combating money laundering and terrorist financing, and serves as the basic principles for subsidiaries implementing anti-money laundering and counter-terrorist financing measures.

In 2015, our Compliance and Legal Division required each subsidiary (First Bank, First Securities, First Securities Investment Trust, First-Aviva and First Insurance Agency) to report on their anti-money laundering/counter-terrorist financing systems/black lists, internal company rules/progress of revisions. Each subsidiary was also required to complete the relevant planning, deployment and management measures by the deadline issued by the competent authority. A company-wide anti-money laundering and terrorist-financing risk assessment should also be conducted, with anti-money-laundering and terrorist prevention plans drawn as well.

Response measures

by the Compliance and Legal Division on mandatory improvements to facilitate the tracking of overseas branches' compliance tasks and strengthen their compliance management capability.

FFHC and subsidiaries First Bank, First Securities and First-Aviva have all established dedicated compliance units reporting to the president in accordance of the law. These units are responsible for the planning, management and execution of the compliance scheme at their respective companies. Our Company also requires every subsidiary to put the compliance scheme into practice. This includes compliance training every 6 months, compilation of a compliance manual, self-assessment on compliance tasks, as well as reporting on their implementation of the compliance scheme to the Board of Directors (or to the Audit Committee in the case of FFHC) every 6 months. Our company conducts performance evaluations on compliance every year. The results are reported to the Board then sent to the board of directors at each company as a reference for personnel evaluations.

To strengthen subsidiaries' management of their compliance scheme and ability to keep up to date on major compliance incidents, our company regularly hosts coordination meetings and on-site inspections with the compliance units at each subsidiary in accordance with the "2015 Subsidiary Management Schedule." This is used to check whether the compliance scheme is being effectively implemented, offer suggestions for improvement, and increase channels of communication with subsidiaries; since 2015, when a major compliance incident occurs at a subsidiary all must notify the head of the compliance unit at Our Company and the president notified as soon as possible in accordance with the "First Financial Group Compliance Notification Process" and "Compliance Reporting Form." The establishment of a Group compliance reporting mechanism allows the Company to be quickly made aware of major compliance incidents at each subsidiary and decide on the appropriate measures to take.

45

assessment should also be completed by 2016/6/30 and 2016/7/31. This should then be used to formulate an anti-money laundering and counter-terrorist risk prevention plan.

According to Jin-Guan-Yin-Kong Letter No. 10460003280 "Regulations governing information service and financial technology companies engaged in finance-related activities as determined by the competent authority" issued by the Financial Supervisory Commission on 2015/9/16:

As this regulation deregulations and boosts digital finance competitiveness, First Bank began actively looking for FinTech-related potential investments in the second half of 2015. At the end of December 2015, an application was made to the competent authority to invest in "TCloud Computing Inc." Approval was granted on February 2, 2016. The above investment project will be carried out in accordance with the relevant regulations in order to satisfy the guidelines set by the competent authority.

Under Article 74 Paragraph 4 of the Banking Act and Article 36, Paragraph 2, Sub-paragraph 11 of the Financial Holding Company Act, "other finance-related activities as determined by the competent authority" covers not only the information services industry (e.g. Involved in processing the e-commerce transaction information of bank accounts) but now also Financial Technology ("FinTech") such as:big data, cloud technology, mobile payment. The Financial Supervisory Commission has now determined both industries to be finance-related.The core business of the information service and FinTech companies may not be the manufacture, sale or leasing of hardware equipment. If the information service and FinTech company provides hardware equipment then the purpose of that hardware equipment must conform to the specified type of business of data, and be connected to finance-related software.A FinTech company is where over 51% of the total annual operating costs or income comes from the financial industry (including financial holding companies, banks, securities, insurance and their subsidiaries) and financial service providers; an exception is made where a bank or financial holding company's investment in the company as part of a strategic alliances or to strengthen business cooperation does not satisfy the criteria for controlling interest or major influence (i.e. Shareholding is below 20%) as defined by the Regulations Governing the Preparation of Financial Reports by Public Banks and Regulations Governing the Preparation of Financial Reports by Financial Holding Companies. The bank or financial holding company should report the ratio of FinTech's annual operating costs and income from financial industries and financial services to the competent authority for reference no more than one month after the end of each financial year.Those who fail to satisfy the ratio should make adjustments to satisfy the ratio within 2 years of the report. They may also describe the reason and apply for extension once. The extension is limited to one year and if the problem is not resolved by the given deadline, a plan should be submitted to the competent authority to reduce the shareholding to below 5%, or increase the ratio to satisfy the 51% requirement.

1.

2.

3.

4.

Major regulatory or policy changes Response measures

46

風險政策訂定

風險辨識

風險衡量

風險監控

風險報告

信用風險

市場風險

流動性風險

保險風險

利率風險

作業風險


2015

4-2


To effectively manage the Group's operating risk, our company and subsidiaries have defined risk management policies and guidelines. Independent "Risk Management Committees" have also been established to regularly supervise the different types of risks within the Group, review each risk limit, set risk monitoring indicators and report the results of risk assessments to the Board. This is expected to keep the potential risks from each business within an acceptance range and achieve the ultimate goal of balancing risk vs. return.

2 Risk management system:

2-1 Risk management policy and structure

Risk policy developmentRisk identificationRisk measurementRisk monitoringRisk reporting

Credit risk

Market risk

Liquidity risk

Insurance risk

Interest rate risk

Operating riskIn accordance with the spirit of corporate governance, FFHC actively assists each subsidiary with establishing the necessary risk management schemes. Apart from regular inspection and disclosure of the Group's risk exposure, we also formulate various risk monitoring indicators based on the requirements of the competent authority or current developments. These included the formulation of the "National Risk Management Regulations for FFHC Companies", and the establishment of the "Industry-based Lending and Investment Risk Liability Cap." To strengthen risk management in China, we have imposed debt caps on leasing subsidiaries operating in China. All subsidiaries are required by our Company to stay on alert for operating risk during their business operations.

The subsidiaries First Bank, First Securities, First Securities Investment Trust and First-Aviva have all set up a "Risk Management Committee". Dedicated risk management units are also tasked with monitoring and reporting routine business risks. The remaining subsidiaries have also set up risk management teams or dedicated risk managers based on the nature of their business and their organizational scale to oversee all matters related to risk management.

Board of Directors,Chairman

President

Risk Management Division

First Bank: Risk Management Committee

First Securities: Risk

Management Committee

First Securities Investment Trust: Risk Management

Committee

First-Aviva: Risk Management Committee

Other subsidiaries: Risk Management

Unit

Risk Management Committee

(convened every 2 months)

47

Our company and subsidiaries have each defined control indicators and operating procedures for credit risk, market risk, interest rate risk, liquidity risk, insurance risk and operating risk based on the traits of their particular business. These included the set up and implementation of authorization systems, limit management, monitoring indicators and reporting process. The risk management policy and procedure can be effectively enforced through indicator monitoring and regular self-assessment. The risk management situation is also regularly inspected by audit units to ensure that risk management system is effective.

Our subsidiary First Bank is progressively adjusting its risk management policy in accordance with BASEL and the relevant regulations laid down by the competent authorities as well as changes in the economic cycle, the content and quality of the overall credit portfolio, and business development strategy. Credit risk assessment tools are now being developed along with the introduction of credit checking services into the credit review process for measuring risk. A Group (including overseas units) loan early warning system has also been set up with pre-lending reviews, post-lending reviews and a mechanism for exchanging information with overseas peers. This serves to improve credit checking information for local industries and businesses overseas. Together with the link to post-lending management, this establishes a comprehensive credit management process for controlling risk. Market risk is controlled using different investment portfolios as well as the monitoring and management of risk factors. Value at Risk (VaR) or sensitivity limits (Greek) are used to measure the level of market exposure. Overall liquidity risk is then used to progressively establish BASEL III quantitative management indicators such as Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR). For operating risk management, through the management of risk management tools such as Loss Data Collection (LDC), Risk Control Self-Assessment (RCSA), Control Self-Assessment (CSA) and Key Risk Indicator (KRI), risk control can be gradually optimized.The subsidiary First Securities Investment Trust conducts sensitivity analysis of equity and rates every quarter for disclosure. It also tracks the credit ratings from bond or deposit institutions to strengthen management of market risks in its investments.The subsidiary First-Aviva Life Insurance uses financial tools to construct models and parameters that correspond to each type of market risk. Sensitivity analysis is also conducted for equity, rates and exchange rates every quarter to reflect the impact of market risk on profit, loss and equity.The subsidiary First Securities has now completed the real-time inventory and profit-loss system for TWSE, OTC, Emerging Stock, Futures and Options for more effective control of market risks.FCB Leasing (Suzhou), FCB Leasing (Xiamen) and FCB Leasing (Chengdu) are progressively updating their risk management policy and procedures, general business processing rules, risk lending cap guidelines and financing & line of credit operating guidelines to strengthen their control of exposure in China. Apart from establishing risk management schemes and enforcing the separation of sales and review during credit checks, they also added risk management rules such as total credit caps on individual industries and total debt caps.

a.

b.

c.

d.

e.

a.

b.

c.

2-2 Risk management procedure

The risk management operations of the First Financial Group as a hold can be divided into three directions:

Distributed management All Group subsidiaries regardless of size must establish an effective and practical risk management scheme based on the requirements laid down in the "Risk Management Principle and Guiding Principles for FFHC and its Subsidiaries" so they can identify, measure, monitor and control their own risk exposure. Each subsidiary's board of directors serve as the top decision-making body for risk management while the risk management and audit departments ensure the effective operation of their risk management scheme. Centralized monitoring As the parent company of the group, we track all quantitative and qualitative risk management indicators at each subsidiary based on their level of importance. This includes the establishment of reporting thresholds, monitoring of meeting records, risk management regulations and credit limit management authorization; as for the effectiveness of risk management schemes at subsidiaries, disclosure is achieved through monitoring indicators as well as the implementation of internal audits and internal controls. Timely guidance on corrective action is provided or adjustments made based on the strategic needs of the Group as a whole.Overall economic directionAs local and international economic, financial and industry developments play a critical part in our business development and risk management, our company's risk management committee is convened every two months

48


2015

4-2


The purpose of the internal audit system is to assist the Board and management with assessing and evaluating the effective operation of the internal control system, to provide timely advice on improvements, to ensure that the internal control system can continue to be implemented in a reasonable manner and to provide a basis for corrective action. The internal audit system and the self-inspection system are all part of our Company's ability to maintain the effective and appropriate operation of the internal control system.

The Audit Division is the Company's internal audit unit. Its responsibilities include the establishment and execution of the internal audit scheme, monitoring of audit activities at subsidiaries, assessing and documenting the performance of their internal audit system, and providing regular reports to the Board and Audit Committee.

The Audit Division conducts at least one general business inspection every year and at least one targeted inspection of our Company's finances, risk management an compliance every 6 months. The results are compiled into the internal audit report. If the scope of the targeted inspection was already covered by a previous general business inspection and no major deficiencies were noted in the internal audit report then a targeted inspection may be waived for that 6-month period. Unless otherwise approved by the competent authorities, the Audit Division conducts a targeted inspection of each subsidiary's finance, risk management and compliance every 6 months. This is also included in the annual audit plan.

Random inspections are also conducted by the Board of Directors. These include following up on deficiencies identified for correction during business inspections, supervising and attending acceptance inspections of building projects as well as the purchasing, fabrication and sale of property. The frequency of audits may be increased depending on the severity of deficiencies discovered by financial inspection agencies, accountants, the Audit Division and internal inspection personnel. Inspection workshops are also hosted every year to strengthen the knowledge and skills of internal inspectors. An internal inspection is conducted of each department's internal control system at least once every year. An internal audit coordination conference is held within the Group every 6 months to announce regulatory changes and discuss the audit focus in each industry. Preventive management at the three lines of defense are also reviewed through case studies.

The execution of our company's 2015 internal audit process and the preparation of the 2016 audit plan referred not only to the financial inspection guidelines issued by the Financial Supervisory Commission but also internal control performance ratings and business characteristics of each unit (including subsidiaries). In addition to risk management, the Group's internal control system is used to evaluate our management system and improve the effectiveness of the Group's internal control system self-evaluation. The First Bank subsidiary has even adopted an audit management system that regularly sorts audit opinions or deficiencies by type for statistical analysis to identify areas of potential risk in internal control operations. These are provided to the relevant unit as a reference for the monitoring of internal controls and to help business units make risk-reducing improvements.

for the "First Financial Group Industry and Investment Analysis Report" detailing macro-economic, industry and financial trends. The report not only provides advance notice of risks and opportunities but can also be used as a reference in business development and risk control. It provides the Group's top executives with a useful reference during business decision-making as well.

Third line of defense - Provide an internal control environment with risk management and independent examination of all business operations

49

The arrival of digital finance means the physical

transaction model is gradually changing. Due to the

trend and consumer demand for mobile banking, and

to take advantage of the opportunities offered by

digital banking, the "Electronic Finance Division" was

expanded to become the "Digital Banking Division."

The new division will focus on new mobile payment,

digital experience and big data analytics in order

to keep up with developments in "mobile-first" and

"finance technology."

In response to trends in the interactive experience

and exploit opportunities for digital transformation,

the business development strategy of FFHC has

defined "the customer's most helpful and accessible

professional partner" as the target, with optimizing

digital channels, strengthening digital application

innovation, and enhancing customer segment service

and marketing as the three main dimensions.

FFHC has continued to promote urban renewal

financing. The design of a comprehensive package for

disadvantaged communities in particular means that

residents can move into safe new buildings without

having to pay for the reconstruction themselves.

The building transformations create energy-saving,

carbon-reducing, ecological and friendly communities

that benefit the environment, residents and FFHC.

The initiative has successfully created 12 green

buildings to date. Along with modifications to 7

existing FFHC-owned buildings (with 3 pending

approval) to bring them up to Diamond-class green

building specifications means that FFHC has helped

bring 19 green buildings to date.

Virtual and Physical Integration

Green Building Promotion Fosters 19 Green Buildings

GreenFinance

50

In 2015 FFHC extended the scope of green

financing review principles to overseas sites, leasing

companies, and banking and insurance products.

Except for syndicated loans, for business loans

overseas branches must now explicitly state in the

"Equator Principles Evaluation Form for Overseas

Branches" the basic scope of their review. The

lending documents must also be annotated with text

to the effect that "the borrower has been asked to

comply with local laws and to conduct self-inspection

on whether their products and processes fulfill

their environmental protection and corporate social

responsibilities." In this way, FFHC partners with the

borrower on protecting the local environment; the

34 funds that have products listed with the bank have

now all signed the "CSR Declaration." with 6 out the 7

insurance companies providing their CSR report and

1 signing the "CSR Declaration" in order to support

the development of a sustainable environment

together.

In 2015, electricity, water and petrol savings

of 5.33%, 3.72%, 1.1% were achieved over 2014

reducing total carbon emissions by 1,045 tons of

CO e. This fulfilled the philosophy of "Caring for

the Earth through energy-saving and carbon

reduction" and made a contribution to environmental

sustainability.

As of 2015, 7 sites have achieved "ISO 50001

Energy Management System" certification, 54 sites

have achieved ISO 14064-1 "Greenhouse Gas

Inventory" certification, the headquarters buildings

achieved "ISO 14001 Environment Management

System" certification, 115 sites received the Indoor

Air Quality Self-Management Mark, and 7 existing

buildings have received the Diamond-class Green

Building Mark.

Extending the Equator Principles through "Green Partners"

Continued Carbon Reduction

2

51

2011

2012

2010

In earlier years, environmental issues generally centered around conservation of resources and protecting the land. In

recent years however, flooding and droughts have alternated with increasing frequency, leading to greater public awareness

towards climate change and global warming. This in turn led to the Legislative Yuan finally passing the "Greenhouse

Gas Reduction and Management Act" in the lead-up to the Paris Climate Conference after nearly ten years in limbo.

The Environmental Protection Administration subsequently issued the Taiwan Voluntary Carbon Reduction Plan which

aims to reduce carbon emissions in 2030 by 20% compared to 2005. The reduction of carbon emissions and creation of

green-energy, carbon-reducing environment is therefore an issue that can afford no further delays. In response to the

implementation of the Greenhouse Gas Reduction and Management Act, FFHC has converted its savings on electricity,

water, fuel and gas into carbon emissions and set a 2016 group carbon reduction target of 2.85% compared to 2015. The

installation of solar power panels at 2 sites in central and southern Taiwan to provide clean energy is also being studied.

In the future, the synergies from internal carbon reductions and external solar power panels should see solar-powered

branches achieve the target of carbon neutrality. FFHC will strive to become the No.1 brand in green finance, embrace

energy conservation and carbon reduction, continue to create and enhance green financing products and services, and

expand our range of green partners in order to protect the environment together.

"Building the No. 1 brand in green finance"

MilestonesFormed the "Green Building Certification

Program" team to open the way to green finance.

Promoted "Urban Renewal Financing" to

encourage the renewal of aging communities.

Launched the "No.1 Promoter in the Energy

Industry" financial plan, making First Bank the

first domestic bank to offer a financing program

for the ESCO industry.

Founded the "Organic Agriculture Assistance

Project" and launched the first charity co-

branded card based around "organic and health"

and "land & environmental protection." Through

the card, First Bank partners with customers to

help small organic farmers that lack manpower

and money in order to protect the land of Taiwan.

Required the headquarters building to reduce

its GHG emissions in 2015 by 12% compared to

2011.

Launched the "Renewable Energy Creation Loan"

to help business owners purchase renewable

energy generation equipment.

Defined the CSR Policy and Code of Conduct.

Also established the "CSR Committee" to set

the environmental conservation targets and

action plans for each year.

Launched the "Green Energy Industry Loan" to

support the development of the green energy

industry.

52

1

2015

2014

2013

STEP1

First Energy - Protecting the planet

Progressive internal carbon reduction

External environmental partnerships

FFHC has embraced a policy of environmental sustainability. In 2015, savings in fuel, electricity and gas reduced carbon

emissions by 1,046 tons of CO e. Paperless operations reduced carbon emissions by 11,881 tons of CO e. Total carbon

reductions therefore amounted to 12,927 tons of CO e, down 1,557 tons of CO e from 2014. Related measures and

outcomes are described below:

2

2 2

2

Set electricity, water, fuel and gas conservation

targets for each company. The annual reduction

target must also be no lower than the ratio set

for the previous year.

D r e w u p t h e "G r e e n F i n a n c i n g R ev i e w

Principles" based on the Equator Principles to

help protect the environment. These measures

were applauded by the regulators and were

incorporated into the loan approval principles

of the Bankers' Association.

Defined the tenets of "Green Partners" and

extended the ideals of the Equator Principles

to banking and insurance products. A "Do-

Not-Invest List for CSR Violations" was also

established as a reference for group companies

to use during investment reviews.

Established the 3-step Supplier Management

Procedure to join suppliers in protecting the

local environment.

Green Finance


2015

53

Seven buildings have achieved the carbon reductions required for the Diamond-class Green Building Mark

Diamond-

class

Diamond-

class

Zhongxiao Road

Branch building

Guangfu Branch

building

Replacement with more

efficient inverter air-

conditioning unit

Replacement of T8 with LED

lamps



conditioning unit


lamps

173,186

55,307

90

29

Diamond-

class

Headquarters

building

Enthalpy control


efficient chilled water and

cooling water pumps

Addition of variable speed

drive to chilled water pump


drive to air conditioning unit


drive to cooling tower


lamps

1

2

3

4

5

6

1

2

1

2

Unit Green Building Mark grade

Carbon reduction result Carbon reduction areaTotal(kWh/yr) Total TonsCO e

1,274,553 665

2

Progressive internal carbon reduction

Refurbish old buildings to reduce carbon emissionsSTEP 1

The FFHC headquarters building was completed in 1982 so is over 34 years

old. To alleviate the heat island effect of office buildings, the "Green Building

Certification Program" team was formed in 2010 to begin converting the 74

old buildings owned by FFHC into green buildings. Following the process

of collecting group-wide water and electricity consumption calculation of

CO emissions ISO 14064-1 Greenhouse Gas Inventory certification ISO

50001 Energy Management System certification ISO 14001 Environment

Management System certification Green Building certification, green

competitiveness was strengthened through new mindsets and initiatives. As

of 2015, 7 existing buildings throughout Taiwan, including the headquarters

building, the IT building, the Zhongxiao Road Branch building, the Guangfu Branch building, the Wanhua Branch building, the

Luodong Branch building, and the Gangshan Branch building (with a further 3 pending approval) have been certified by the

Ministry of Interior as Diamond-class green buildings. In the future, FFHC will continue to select 5 - 7 existing buildings for

Green Building certification in order to make a contribution to environmental sustainability.

2

54

STEP1

Diamond-

class

Diamond-

class

Diamond-

class

Diamond-

class

Wanhua Branch

building

Luodong Branch

building

Gangshan Branch

building

IT building


efficient multi-split inverter

air-conditioning


lamps



conditioning unit


lamps



conditioning unit


lamps

Addition of variable-flow

system to cooling water pump


system to regional pump


system to discharging pump

and heat exchange chilled

water pump


lamps

7,567 GJ

(1kWh=0.0036GJ)Total

39,221

43,685

45,749

470,196

2,101,897

20

23

24

245

1,097

Note: An "electricity emission factor" of 0.522 as published in 2013 was used

1

2

1

2

1

2

1

2

3

4

"Diamond-class" Green Building

Indoor Air Quality Self-Management Mark

ISO 14064-1 Greenhouse Gas Inventory

ISO 50001 Energy Management System

ISO 14001 Environmental Management System

7

115

54

7

1

Environment Management certifications received by FFHC

Item Certified sites

Green Finance


2015

55

FFHC has continued to promote its green purchasing policy. Preference is given to eco-friendly, energy-saving, water-saving

and certified Green Building products when purchasing printing paper, toilet paper, computer equipment, air-conditioning

systems, lighting equipment and cleaning supplies. Since 2011, NT$57 million has been progressively spent on replacing

office lighting with high-efficiency LED lamps. The replacement program was completed in 2015 and covered 40,000 units.

In 2015, NT$130,070,000 was spent on green purchasing in response to government appeals and led to recognition for

"excellence in green purchasing" from the Taipei City Government.

In 2012, FFHC set a target of reducing the Headquarters building's GHG emissions in 2015 by 12% compared to 2011. This

target was achieved ahead of schedule in 2013. We did not rest on our laurels however and began setting electricity, water,

petrol and gas reduction targets for each group company in 2013. The principle that the reduction target for each year

should not be lower than the previous year was also laid down. In 2015, the electricity, water and petrol consumption of the

group as a whole was reduced by 5.33%, 3.72% and 1.1% respectively compared to 2014. Due to the implementation of the

"Greenhouse Gas Reduction and Management Act" in 2016, savings in electricity, water, petrol and gas consumption will be

converted into carbon emissions to provide a clearer picture of carbon emissions by each group company.

FFHC is taking the impact of climate change seriously and boosting our risk awareness. We signed on with the Carbon

Disclosure Project (CDP) in 2012 and were among the first group of finance companies in Taiwan to express their support

for the CDP. In 2015 our CDP survey received a score of 89.

Amount spent on green purchasing (NT$10,000) Pie chart of green purchasing

Green Purchasing - Total Replacement with Energy-Saving Products

Set Clear Carbon Reduction Targets

STEP 2

STEP 3

FFHC Green Purchasing results from recent years

54.5%41.5%

4.0%

56

14,000

12,000

10,000

8,000

6,000

4,000

2,000

0

2014

6,868

2013

5,270

2015

13,007

146.8%

Purchasing of energy-saving equipmentPurchasing of green building materials

First-Aviva Life Insurance First Financial AMC

FFHC Overall Carbon Emissions

Individual GHG emissions(t-CO e) :

Note 1: Scope 1 emissions consist mainly of fuel used by company cars, generator diesel and natural gas. Scope 2 emissions

consist mainly of electricity consumption.

Note 2: In:2014 there were 8,886 employees and in 2015 there were 9,210 employees

Note 3: New and replacement air-conditioning systems all used the new eco-friendly R134a or R410a refrigerant. There

was no use of Ozone Depleting Substances (ODS).

Note 4: In 2015 we received no complaints over environmental impact or penalties for environmental violations.

Note: In 2014 total GHG emissions were 20,197

tons CO e, with 11,313.6228 tons CO e coming

from the emissions recorded for "ISO 14064-1

Greenhouse Gas Inventory" certification at 54 sites.

Emissions(t-CO e/year)

Proportion of total emissions

11,226.0558

99.226%

4.5702

0.040%

14.3735

0.127%

68.6234

0.607%

0.0000

0.0000%

0.0000

0.0000%

Greenhouse Gas Type CO CH N O HFCs PFCs SF

Total

Proportion of total emissions 100.0000%

11,313.6228

5.18 8.11 20.91

First Bank First Securities First Securities Investment Trust

(Unit: %)

The energy conservation and carbon reduction performance of FFHC Group companies in 2015:

%

Reduction Ratio 1.01 5.51 4.76% % % % %

2 2

2

2

2 2 64

ElectricitySavings

Electricity Savings

Electricity Savings

ElectricitySavings

ElectricitySavings

Wa t e r Savings

Water Savings

Water Savings

Water Savings

Water Savings

Petrol Savings

Petrol Savings

Petrol Savings

PetrolSavings

Petrol Savings

Compared to 2014 reduction target

Actual performance

STEP2STEP3

Green Finance


2015

Scope 1 Emissions (metric tons CO e)

Scope 2 Emissions (metric tons CO e)

Total Emissions (metric tons CO e)

Total energyconsumption (GJ)

EnergyConsumption Per Capita (GJ/person)

G r e e n h o u s e gas emissions intensity (Tons C O e / M i l l i o n NTD)

2

2

2

2

57

2.002.12

2.00

6.55

2.00

12.35

4.56 2.00

6.26

10.19

1.001.18

3.50 1.00

5.003.66

1.001.90

2.00 2.00

5.02 3.83

1.00

2.94

4.47 1.00

12.26

1.181.00

23.23

18,71817,687

20,19719,151

148,985

141,893

15.4116.77

0.593 0.469

1,4791,464

2014

2015

Conservation of water resources - Gray water reclamationSTEP 4

FFHC Overall Electricity Consumption

In 2012, FFHC installed a 1,296-ton rainwater reclamation tank in the basement of the Headquarters building to supply

water for watering the gardens and toilets. Tap water therefore made up 97.67% of the water consumption and 2.33% came

from the Headquarter building basement's overflow and rainwater. Water consumption at each company including operating

sites was also investigated. Certified green water-saving devices such as water-saving tap fittings, 2-stage flushing toilets,

and sensor-controlled urinals were also used to reduce water conservation.

Gray water reclamation system installed and a 1,296 ton rainwater reclamation tank built in the building basement to

supply water for watering the gardens and toilets. In 2015 the gray water reclamation system conserved 4,790 tons of

tap water and accounted for 2.38% of the group's water consumption.

FFHC Overall Water Consumption

Total power consumption

Total water consumption(kWH)

Average electricity consumption (kWH/person)

Average water consumption (kWH/person)

58

20132012 2014 2015

38,689,382

4,595

4,2494,028

3,680

37,425,00235,796,501

33,889,212

12.4%

20132012 2014 2015

220,215

26.15

24.4523.51

21.84

215,371208,913

201,143

8.66%

Upgrading IT equipment - Paperless operationsSTEP 5

FFHC is using IT equipment to introduce paperless education, paperless meetings and paperless operations. Carbon

reducing reforms are also being incorporated during the development of internal and external systems. Since 2008 we have

continued to optimize our credit review system and credit checks are now carried out completely within the system rather

than by manual inspection and on paper. Automatic importing of credit information and domestic/overseas group account-

keeping is also being progressively introduced. In the last three years, 103,060 lending review and 39,060 credit check cases

have been processed in this manner, greatly reducing the demand for printing paper.

Paperless learning

Paperless meeting

Paperless administration

Paperless credit review

The development of the "First e-Academy" online

learning system, collaborative system cloud and

data cloud has effectively reduced electricity

consumption.

Printed materials no longer provided at most

meetings. They are instead compiled into electronic

files and transmitted to the meeting server.

All business announcements, and sales reviews

are conducted through video conferencing where

possible to reduce fuel consumption and carbon

emissions from business travel. This improved

administrative efficiency and reduced carbon

emissions.

Internal documents are now in electronic form.

Recycled envelopes are used for sending printed

documents.

Use of Internet bulletin board for announcements.

Reduced the use of paper cups and meal boxes.

Recycled paper packaging for bills; eco-friendly ink

used for printing envelopes and annual reports.

Implemented the "New Enterprise e-Loan System" and "Consumer e-Loan System" for credit checks and reviews. The entire process is not computerized eliminating the need for paperwork.

Joint credit information is now automatically imported. Borrower/policy-holder credit information can be queried online making printed paperwork unnecessary.

Implemented an account-keeping database for the group to automatically import domestic and overseas group data.

STEP3STEP4STEP5

Green Finance


2015

59

e

Recycling - Zero Waste BasketsSTEP 6

To maximize resource recycling, annual recycling targets have been set by FFHC for all group companies. A zero waste

basket policy is also rigorously enforced with no personal waste baskets placed in the office. This encourages employees to

take their trash to the office kitchen to be sorted. In 2015, the amount of waste recycled was 6.1% higher than 2014.

Note: According to the Environmental Protection Administration of Executive Yuan's (Taiwan Product Carbon Footprint)

website, a sheet of B4 paper produces 0.009 kg CO e in carbon emissions. In 2015 a total of 1,320,126,530 pcs of electronic

statements and eDM were sent out and this is equal to a carbon reduction of 11,881 tons of CO e.

Carbon reduction at FFHC from paperless initiative

FFHC recovers all kitchen scraps after each meal and also encourages recycling. No personal waste baskets are

provided in the office and all waste must go through the recycling process.

Grow

th rate 18.6 14.4 4.0 13.7 4.5% % % % %

2

2

Number of electronic documents

Video conferencing and tele-education

Online education

Paperless meeting

128,530

1,161 sessions

31,625 people

192 sessions

2014 2015 Growth

130,489

1,172 sessions

60,400 people

455 sessions

1.52%

0.95%

90.99%

136.98%

60

2014年

2015年

111

127

10,21910,630

2.9

3.3

11,88111,370

3,671

4,354

Electronicstatementssent

(10 thousand pcs) (10 thousand pcs)

(10 thousand pcs)

(10 thousand pcs) (tons of CO e)2

Electronicstatementsubscribers

eDMrecipients

No. of electronicinsurancepremium receipts

Total carbonreductionsfrom paperlessinitiative

Paper and paper containers

Aluminum foil, plastics and PET bottles

Aluminum cans, iron cans, and glass

Batteries and electronic devices

Total

19,308

641

520

2,405

22,874

2014 2015 Magnitude of change

19,661

1,796

1,645

1,176

24,278

+1.8%

+180.2%

+216.4%

-51.1%

+6.1%

"Comparison of Waste Recycling at FFHC including all sites in 2015" (Unit: KG)

Since FFHC launched the zero office waste basket program two years ago, the Headquarters building and IT building have reduced their waste production by 53.34%.

Note: 51.1% reduction in batteries and electronic devices - in 2015 FFHC donated 330 refurbished personal computers and

notebooks to disadvantaged groups. This represented an increase of 194 units on 2014 and reduced waste by 1,164 kg. The

IT building of group subsidiary First Bank also switched over to using only rechargeable AA and AAA batteries (except for

clock batteries).

Integration with environment education - Changing employee habitsSTEP 7

FFHC has introduced environmental education at the grassroots level in keeping with the philosophy that "education is

crucial to a better environment." Apart from arranging for the new employee training class to take part in morning community

service events to strengthen and implement environmental conservation concepts during training, general administration

personnel have been designated as the energy-saving and carbon reduction promotion cadre as each unit. At the end of

each working day, they must fill out the energy-saving assessment forms to ensure that energy-saving and carbon reduction

measures are being followed. The cadre also changes over time as they rotate through different positions. Using this system,

every employee is rotated through the energy-saving and carbon reduction promotion role. From 2012 to 2015, 270

energy-saving and carbon reduction cadre completed their training. This will gradually expand the ideals of carbon reduction

throughout the group and from there to our customers and suppliers.

FFHC believes that a better environment starts with education, so we have dispatched personnel to attend professional

environmental education training courses and acquire certification as environmental educators. Such personnel are now

responsible for the planning of internal environmental education courses and for compiling the course content. This will help

instill the concepts of environmental education and ecological conservation in all employees. In 2015 we began organizing

online environmental education courses for employees to enhance their understanding of environmental sustainability. The

course content is as shown below. A total of 6,191 people undertook 21,668 hours of training:

STEP5STEP6STEP7

Green Finance


2015

61

2013

78,188 KG

2015

36,479 KG53.34%

0The zero office waste basket program

Introduction to global environmental problems, energy conservation and carbon reduction 51minutes

28minutes

34minutes

22minutes

27minutes

26minutes

23minutes

Course DurationCourse Content

Total 3 hours minutes31

To enhance the quality of life, improve the living environment as well as take care of the middle class and minority groups, and

return to the original mission of "improving the cityscape and rebuilding for a better home" for urban renewal, all buildings

after urban renewal must satisfy the greening indicators and minimize the discharge of waste heat, CO , methane and

wastewater. Since 2009 First Bank has actively cooperated with the government's promotion of urban renewal integration.

First Bank has spared no effort when it comes to assisting with integration and professional consultation on self-managed

urban renewal cases in particular. From urban renewal planning, trust management, rebuilding costs, insurance, construction

management to the subsequent completion, handover and loan splitting, we offer one-stop financial services that ensure

the original residents don't have to worry about having to raise massive funds needed for rebuilding. Once urban renewal is

complete they can enjoy the benefits and the difference between the selling price and rebuilding cost all go to the landowner.

In this way, the dream of self-managed urban renewal comes true and old assets are traded for the new.

Self-managed urban renewal project

Developer-consolidated urban renewal projects

Total

4.278 billion/5 cases

NT$19.995 billion/19 cases

NT$24.273 billion/24 cases

Approved amount and casesType Landowners

363 people

774 people

1,137 people

*Out of the 24 urban renewal cases, 12 applied for the Green Building Labeling. The remainder satisfied the greening indicators for urban renewal.

External environmental partnerships

(1) Supporting urban renewal for a green home

Climate change and global warming

Ecological systems and ecological balance

Natural disasters

Environmental impact and care

Sustainable development

Environmental education and citizenship

2

62


First Bank combined the ideal of sustainable environment development with core competencies to help green industry

operators secure the funds needed for business development. This included the launch of the "No.1 Promoter in the Energy

Industry" financing plan targeted at Energy Service Corporation (ESCO). Funds are released based on the progress made

by the business in energy-saving improvements in order to accelerate improvements to energy efficiency and conservation

as well as cooperate with the Bureau of Energy of Ministry of Economic Affairs' Million Rooftop PVs" project. Through the

"Renewable Energy Creation Loan" we can help business owners purchase renewable energy generation equipment. We

have also launched the Green Energy Industry Loan in support of the Executive Yuan "Dawning Green Energy Industry

Program" for the six key green industries of PV, LED, wind power, bio-fuel, hydrogen energy, fuel cell and electric vehicles. To

realize our green sustainable financing policy and support the government's Productivity 4.0 Initiative for boosting industry

transformation, we have drawn up the "Green Sustainability-based Industry Transformation Lending Program" to help

Taiwanese enterprises with their transformation and to take advantage of international low-carbon business opportunities.

(2) Helping industry transformation through green energy financing

Unit: Million NTD

2014 / 12 / 31 2015 / 12 / 31

ESCO industry

Renewable Energy Creation Loan

Green Energy Industry Loan

Total

57

633

11,290

11,980

92

865

12,777

13,734

430

1,309

28,084

29,823

528

1,655

26,250

28,433

Loan balance Loan balanceApproved amount Approved amount

STEP71-11-2

Green Finance

Loans for power,

w a t e r a n d f u e l - s a v i n g

projects and equipment

Help business owners

purchase renewable

energy generation

equipment.

Industry transformation and

upgrade program for the six

key green

energy industries

63

ESCO industry

Renewable Energy Creation Loan

Green Energy Industry Loan

Green loan

2015

FFHC founded the "Organic Agriculture Assistance Project"

and launched the first charity co-branded card based

around "organic and health" and "land & environmental

protection." Out of the amounts spent with Leezen cards,

6‰ will be reserved for charitable purposes, and donated

to the Tze-Xin Organic Agriculture Foundation and the

Bliss and Wisdom Foundation of Culture and Education.

Through the card, First Bank partners with customers to

help small organic farmers that lack manpower and money

in order to protect the land of Taiwan.

First Venture Capital is continuing

t o i nve s t i n u n l i s t e d c o m p a n i e s

within the green industries with

shareholder oversight used to manage

the environmental or social risks

generated by their operations. As of

the end of December 2015, green

industries accounted for 15.13% of all

investments. The figure on the right

shows the industries being invested in.

Leezen card-holders and donations have continued to grow over the past three years

(3)Joining customers in promoting organic agriculture

(4) Green investment

Solar power

Chemical engineering

Optoelectronics

Electronic parts

Semiconductors

Other

Distribution of green environmentally-friendly industries

47%23%

11%

8%6%

5%

To fulfill the social responsibility of the financial industry in the financial supply chain, First Bank applied the finance

industry's ability to direct cash flow to safeguarding the environment. The advantages of implementing the Equator

Principles were assessed in 2013 and industry risk factors proposed based on the characteristics of individual domestic

industries. In February 2014, the Equator Principles were incorporated into the loan review principles to define the "Green

Financing Review Principles". This applies to all corporate loans regardless of credit amount. First Bank became the first

domestic financial institution to incorporate the Equator Principles into loan reviews. New or existing customers seeking

an extension must sign the declaration before drawing on their line of credit. Violation of the Equator Principles will result

in their line of credit being stopped and the loan recovered. The Principles are divided into three phases: loan application

review, pre-draw commitment and post-draw management. During the loan application review phase, the potential

(5) Formulation of the Green Financing Review Principles based on the Equator Principles

3,846

2013

803

2014

933

2015

1,343

4,736

10,463

Leezen Card-holders

Leezen Card donations(NT$10,000)

64

In addition to internal energy-saving and carbon reduction initiatives, FFHC also requires businesses that it has dealings with

to take environmental sustainability seriously as well. To this end, FFHC set up the 3-step supply chain management process

in 2013 and identified potential child labor, forced or compulsory labor risks in the supply chain. Supplier management is

used to select vendors that satisfy the spirit of sustainable development as long-term partners including: Suppliers involved

with the purchasing of energy-saving equipment, purchasing and maintenance of IT equipment, construction and interior

design, purchasing of business-related OA equipment and consumables, and building maintenance. In 2015, 99% of all

purchasing came from local suppliers to ensure the stability and localization of the supply chain as well as create local job

opportunities.

In 2015 FFHC extended the scope of green financing review principles to overseas sites, leasing companies, and banking

and insurance products. Except for syndicated loans, for business loans overseas branches must now explicitly state in

the "Equator Principles Evaluation Form for Overseas Branches" the basic scope of their review. The lending documents

must also be annotated with text to the effect that "the borrower has been asked to comply with local laws and to conduct

self-inspection on whether their products and processes fulfill their environmental protection and corporate social

responsibilities." In this way, FFHC partners with the borrower on protecting the local environment; the 34 funds that have

products listed with the bank have now all signed the "CSR Declaration." with 6 out the 7 insurance companies providing

their CSR report and 1 signing the "CSR Declaration" in order to support the development of a sustainable environment

together.

vs

(6) 3-Step supply chain management process - Preliminary screening, concurrent declaration, post hoc management

environmental or social risks of each industry are studied through assessment tools and on-site inspections. Companies

with a history of environmental pollution or harming the public interest are required to provide their corrective actions

or planning; before they can draw on the line of credit, the business must sign a declaration committing to conform to

human rights and environmental laws as well as fulfill their corporate social responsibility; after lending, in the event of

environmental pollution or harm to public interest, the company is required to propose an improvement plan and timetable

immediately. Active assistance or financing is also provided to help the implement corrective action. Companies that are

slow to make improvements are then put under pressure through clauses that introduce higher interest rates, impose a stop

on their line of credit, and progressive recovery of loan funds. As of the end of 2015, 15,159 borrowers were successfully

convinced to issue a CSR declaration. Through 3-phased approval process for financing we can help protect the environment

and ensure that environmental protection is practiced by businesses. Due to a number of public safety incidents in Taiwan

relating to environmental pollution and food safety, our enforcement of the Equator Principles was welcomed by the general

public and regulators. This led to its inclusion in the Bankers' Association loan approval principles. This will help reduce the

environmental and social risks caused by loans from the finance industry.

All corporate borrowers

regardless of the loan

amount are required to

sign the declaration. The

signing process is used

to educate the customer

on the meaning of the

Equator Principles in

order to protect the

environment together.

1. New loans amounting

to US$10 million or

more in any industry.

2. Project loans where

the expansion or

upgrading of existing

equipment may have a

major impact on society

and the environment.

Green Financing Review Principles

Equator Principles

Green Finance


2015

1-81-41-51-6

65

Supplier Management Mechanism

"Declaration on Human Rights and Environmental Sustainability Clauses" - Forming partnerships for environmental sustainability.

Article 1. Both parties shall comply with relevant labor laws and regulations, protect the legal rights and interests of employees, and respect internationally recognized principles on fundamental labor rights such as: Prohibition on the use of child labor (ban on hiring anyone under the age of 16), looking after disadvantaged groups, eliminating all forms of forced labor, elimination of discrimination in recruiting and employment, and non-infringement of fundamental labor rights.

Article 5. Both parties shall follow relevant environmental laws and regulations and international standards to properly protect the environment and shall endeavor to promote a sustainable environment when engaging in business activities.

FFHC values the fairness and transparency of the purchasing process when defining tender specifications. Suppliers are

also asked to sign the "Declaration on Human Rights and Environmental Sustainability Clauses" covering non-use of child

labor, environmental protection, safety and health management, environment and energy-saving management systems, CSR

policy, fundamental labor rights and labor management. Suppliers must commit to establishing concrete environmental and

energy management systems, adopting the best pollution prevention and control technologies, appropriate protection of

the natural environment and striving to realize the goal of environmental sustainability. We hope this will draw the attention

of suppliers to environmental issues so they can also join the ranks of environmentally sustainable development and carry

out supplier risk management. In 2015, all 289 of new and renewed suppliers signed the "Declaration on Human Rights and

Environmental Sustainability Clauses". Between 2013 and 2015, 697 companies agreed to participate and do their part for

environmental sustainability.

FFHC regularly audits qualified suppliers to check for environmental, occupational disaster or labor rights problems. If these

are proven then the supplier is asked to provide an improvement plan or their contract is terminated and the supplier added

to the monitoring list.

Suppliers are educated on the importance of environmental protection before bidding. The FFHC CSR Report in electronic format is also provided every year to ask for their support for the CSR policy.

Potential bidders are checked for any violations of environmental or human rights laws. If such violations are found, require the bidder to state what corrective actions were taken or be excluded as a potential partner.

Signing of the "Declaration on Human Rights and Environmental Sustainability Clauses"

The supplier is regularly audited for violations of environmental or human rights laws. Where there is significant impact on the environment and society then the contract may be terminated at any time. This encourages suppliers to protect labor rights and the environment.

A supplier evaluation mechanism has also been established for purchasing by overseas sites. A "Human Rights and Environmental Sustainability Evaluation" should be filled out before purchasing.

66

Regular education Preliminary screening

Concurrent declaration

Post hoc management

Overseasmanagement

To ensure responsible investment and use of funds by group companies, none shall not invest in companies added to the "Do-

Not-Investment for Violation of Social Responsibility List" by the quarterly meetings of the group's securities investment

platform for violations of social responsibility (such as labor safety accidents, food safety accidents, violations of corporate

governance and labor rights...). This is to avoid environmental pollution and harm caused through our investment activities.

The six domestic funds (Small Capital, Innovation, Great China, High-Tech, OTC and Greater China Balanced) of FSITC will

not invest in such companies either. 44.5% of the companies that FSITC has invested have issued CSR reports and this helps

to safeguard customer assets.

(7) Establishment of "Group Do-Not-Invest List"

Article 6. Both parties shall establish a concrete environment and energy-saving management system. They shall also effectively implement a corporate culture of environmentally sustainable development in order to protect the planet, conserve resources, and conserve energy.

Article 25 of the Standard Purchasing Contract : Our company has the right to terminate this contract if the vendor is in violation of its CSR policy in a manner that impacts significantly on the environment and society.

The coming of digital finance means the physical transaction model is gradually changing. Due to the trend and consumer

demand for mobile banking, and to take advantage of the opportunities offered by digital banking, the First Bank "Electronic

Finance Division" was expanded in September 2015 to become the "Digital Banking Division." The new division will focus on

new mobile payment, digital experience and big data analytics in order to keep up with developments in "mobile-first" and

"finance technology."

2015 is year zero for mobile payment. To satisfy the needs of the Slide generation, First Bank and Taiwan Mobile Payment

have jointly launched mobile phone credit cards and mobile bank cards to provide the general public with a secure and

convenient mobile payment service for transfers, shopping and payments at any time in any place.

(8) Virtual and physical integration

The mobile phone Cards

The mobile phone as the credit card and bank cardBy integrating credit card and bank card functions into mobile phones as a replacement for physical cards now in use, this

not only enhances customer convenience but also reduces the need for issuing plastic cards and the associated carbon

emissions.

Replace by

Green Finance


2015

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67

In response to trends in the interactive experience and exploit opportunities for digital transformation, the business

development strategy of FFHC has defined "the customer's most helpful and accessible professional partner" as the target

with optimizing digital channels, strengthening digital application innovation, and enhancing customer segment service and

marketing as the three main dimensions.

Following the principle of providing customers with direct access to financial services over virtual channels, new

electronic channels (Internet banking, mobile banking, mobile bank card and electronic payment) functions have

now been added. In addition to directing existing deposit/remittance businesses to electronic channels, virtual

transactions are also being developed for trusts, financial planning and loan businesses to provide customers with

easy-to-use and convenient financial services.

8.1 Service proposals for optimizing digital channels

(1)Enhancing virtual financial services:

A Business Internet Banking: The "First Bank eBank App" launched in May 2015, allows

business customers to query their accounts from a mobile phone or tablet, a first for

domestic banks; customers now have access to almost all query functionality including

information about imports/exports and global e-banking through the e-banking app.

B

C

Consumer Internet Banking: The "e-Action App" offers a variety of innovative functions

aimed at providing secure and convenient mobile financial services that meet the

everyday needs of people today. Examples include cash transfer using QR Code over the

mobile phone, making payment by scanning a barcode, or even authorizing payments

using Touch ID (fingerprint recognition) on an iPhone. Night market cloud mobile

payment has now been pioneered at the Ningxia night market in Taipei. You can now use

the mobile banking app on the mobile phone to make payments at night markets even if

you should leave your wallet at home. This innovation completely changes old ways of

consumption and offers the convenience of a high-tech lifestyle.

Personal Online Loan Applications: First Bank now offers the "Loan Platform" platform

offering 24-hour online personal loan service. Customers can use their mobile phone,

tablet or desktop PC to log into the platform to apply for home or credit loans. Using the

online helper "LOVE LION", they can receive a personalized line of credit and interest

rate information within one minute. Internal verification is carried out through the Loan

Platform and the funds can be released within one day of the proper documentation

being provided. For customers with temporary cash flow requirements this service comes

as a life-saver.

68

D

E

F

Credit Cards: The "First Card" app provides online applications, credit card promotions

and mobile phone payment functions. It is also integrated with other popular information

such as air pollution, weather and charity. Free space on eDMs, electronic statements

and the website for fund-raising advertisements to 9 charities: the Sunshine Welfare

Foundation, Chinese Children & Shelter Association (CCSA), Cosmic Light Holistic Care,

Chung Yi Social Welfare Foundation, Taiwan Foundation for the Blind, the R.O.C. Down

Syndrome Association, the Chinese Christian Relief Association, the Genesis Social

Welfare Foundation and Hondao Senior Citizen's Welfare Foundation. The "First Card"

app is also used to provide additional exposure and boost the total amount of funds

raised. The app allows donations to go directly towards helping disadvantaged groups

throughout Taiwan and lets customers donate at any time. The number of donors and

amount of donations have continued to climb in recent years with more than NT$720

million donated to date.

Securities: First Securities upgraded the functionality of the "e-Move" app by

incorporating sub-brokerage services for Hong Kong and American stock markets. The

integration with existing domestic futures products backed by physical channels and

customer service provides customers with a complete mobile domestic and overseas

investment and trading platform.

Life Insurance: First-Aviva has set up a mobile service platform app to provide policy

holders with functions such as policy query, mobile payment, online policy amendment

and lifestyle information.

FFHC strives to work with our customers to protect the environment. Customers are also encouraged and educated to use

the electronic channels in order to reduce the need for over-the-counter transactions. Exceptional progress has been made

after 3 years:

Utilization of electronic channels have grown by 3.88% in the last three years:

Green Finance


2015

1-8

69

3.88%74.2%2015

70.32%

2013

Grown

First Bank's leading position in business finance as well as comprehensive overseas network have been used to set up

the First Bank International e-Banking (including "First Bank eBank - Overseas Branch Internet Banking, and "Global

e-Banking Service"), international business cash flow (e.g. Supply chain financing, sales chain financing), international

consumer cash flow (e.g. international third-party payment) and international clearing system.

One of the innovative applications of International e-Payment is international payment of tuition and miscellaneous

fees for Chinese students. A partnership has now been set up with "Alipay" and "Tenpay" which account for nearly

80% of the online payment market in China as well as more than 30 local universities. First Bank also became the first

financial institution to receive regulator approval to offer WeChat Pay services and to open a WeChat Official Account.

WeChat Pay can now be used at up to 20,000 merchants including leading department stores and shopping districts,

Taiwanese specialty stores, tourist shopping districts such as the "E-Da Outlet Mall", "M-Taxi", "Hi-Life" convenience

stores, "Fong Pu Tea Company." This makes First Bank the largest provider of WeChat Pay's micro-payment services to

Chinese tourists in Taiwan. Chinese tourists can immediately activate their WeChat Pay wallet upon arrival in Taiwan.

To take advantage of WeChat's advantage in social networking, we have also set up a "WeChat Official Account".

Chinese tourists can follow "Taiwan First Choice" to receive information about merchant promotions and directions.

This helps to generate further business opportunities from international shopping after they return home, forming

a perfect online to offline O2O cycle as well as secondary sales. For Taiwanese merchants this means more potential

transactions.

(2) Leveraging the strengths of the international cash flow platform

In response to the coming of digital finance, FFHC is leading the way on the building of a smart, high-tech digital bank

that not only provides a variety of digital equipment. First Bank is also the first bank in Taiwan to introduce the "Virtual

Teller Machine". This innovative service breaks away from the traditional over-the-counter service model and uses the

advantages of the physical channel to seize the business opportunities from virtual channels. The integration of virtual

and physical channels provide customers with a digital finance service that offers more options. The new "Digital

Banking Service Area" is equipped with ATM, deposit machines, passbook entry machines, voice banking machine as

well as foreign currency ATMs, interactive screens, virtual teller machine (VTM) and night-time projection equipment;

the "Digital Banking Experience Area" in business branches incorporate digital equipment such as a digital writing

table, i-Pad, personal computer and large multimedia digital signboard to let customers experience the convenience of

digital banking.

8.2 Strengthening innovation in digital applications

(1)Physical channel reforms

(2) International e-Payment

Chinese tourists can use WeChat Pay to pay for

taxi fares

The "WeChat Official Account" set up by First

Bank provides effective diversified marketing for

Taiwanese merchants and generates business

opportunities from international shopping.

70

Social network management (e.g. Facebook) is used to increase the channels for

customer communication. It is used to provide customers with information about

promotions and to gage customer identification with First Bank and their service

requirements. Apart from customer relations management, it can also be used to reach

out to younger customers. The First Bank fan page on Facebook had accumulated more

than 580,000 fans by the end of 2015, making ours the second most popular social

media fan page managed by a domestic financial institution.

First Bank has already begun developing a big data analytics system to gain a better understanding of customers, help

customers quickly solve their problems and increase the frequency of customer interaction. Big data analytics will be

used for customer segment management. "Smart customer management and effective channel utilization" will be used

to carefully manage all potential customer contact opportunities, collect digital data, create personalized real-time

interactive marketing and services, provide a better experience, improve customer satisfaction and ultimately create

new opportunities for business development.

Provide financial services in different industries through

virtual channel and cross-industry alliances. This

increases connectivity between industries and financial

services while also expanding the cash flow service

application environment. First Bank's "e-Payment"

service has partnered with Yam blog to promote

shopping and cash flow services in cooperation with

social network bloggers. A co-branding partnership

has also been set up with Yam for Kids to teach kids

about proper financial planning and introduce future

customers to First Bank at an early age.

In the future, big data will be used to interact in real-time with customers. When the customer browses through

corporate platforms they will receive product recommendations tailored to their personal preferences. The big data

platform is expected to complete development in 2016. Customer interaction data on the corporate website will be

collected, collated and analyzed in order to carry out personalized advertisements. This will bring about changes to

First Bank's physical and cloud channels. The quality of service and marketing effectiveness of each channel will also be

greatly increased.

(4)Cross-industry cooperation

(2)Precision marketing

(3) Social network media

(1)Big data

8.3 Enhancing customer segment service and marketing

Green Finance


2015

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71

2The domestic financial market is now facing changing consumer habits from the mobile

generation. Statistics indicate that the increase in proportion of the Taiwanese people

shopping on smart mobile devices is the highest in the Asia-Pacific, making Taiwan a region

that frequently uses smart mobile devices for shopping. Information security however is the

most important factor when customers decide to use mobile payment or not. The challenge

now facing the finance industry is how to balance business innovation with building a secure

and stable IT environment that guarantees the information security of the customer and the

system. FFHC has always treated the security of customer data as our overriding business

principle. Apart from receiving the Security & Golden Quality Awards" for four successive

2-1 Protection of customer rights

The financial product or service contracts that financial consumers sign with us all follow

the principle of equality and mutual benefit. We manage the financial products or services

we provide in good faith. On the protection of customer rights, all FFHC subsidiaries

comply with the regulations of the "Financial Consumer Protection Act" in the defining and

implementation of our procedures and internal controls. Through comprehensive processes

and employee training we have cultivated a service philosophy of "the customer comes first"

that prevents harm to customer interests. Comprehensive processes

Gold Quality Award - Credit Card Data Certificate of appreciation

years, First Securities also passed ISO 27001:2013 Information Security Management system certification by the BSI and

was certified on the revised standard in 2015. In the future, we will continue to refine our IT security management standards

and operations in order to meet international IT security management standards and protect consumer rights.

First Bank plans to use "Accelerated virtual-physical channel transformation and management of digital marketing

experience" to realize the Digital Finance 3.0 Policy of the Financial Supervisory Commission. The launch of 12 online services

through will make us an all-channel customer experience bank. Apart from innovations in financial products and services, we

will adhere to the relevant regulations in the "Financial Consumer Protection Act", "Personal Information Protection Act" and

"Regulations Governing Internal Operating Systems and Procedures for Banks Conducting Financial Derivatives Business"

while also recommending products that match the customer's attributes in order to help them protect their assets.

First Security- Safeguarding customers

2-1 Protection of customer rights

2-2 Protecting the security of customer information

2-3 Protecting our customer's assets and exercising duty of care

72

Employee training

In addition, since full disclosure is also a part of consumer rights protection, the First Bank

website regularly discloses the fee standards for all types of businesses, the standard

contract templates for all businesses, loan rate calculators and other related product

information; First Securities also publishes its fees and product operations on its website;

the FSITC website publishes its fees, profit distribution, risk attributes and investment

information. Application forms also indicate the related fees, risk information and other

information. All product information is fully disclosed in the prospectus and product guide;

First-Aviva publishes its policy rates and claims process on the website to make it easy for

consumers to access product and service information.

To protect the rights of card-holders, First Bank credit cards have their fees published in the Credit Card section. To prevent

credit card theft, SMS and e-mail is immediately sent after transaction. If any anomalies are detected then dedicated staff will

contact the customer as well. These measures are all intended to protect the consumer rights of card-holders.

2-2 Protecting the security of customer information

2-3 Protecting our customer's assets and exercising duty of care

In accordance with the "Joint Marketing Firewall Policy and Guiding Principles for FFHC and its Subsidiaries" a customer

privacy statement is published on the homepage of FFHC and our subsidiaries. Employees are also frequently educated

and trained on privacy protection to prevent leaks of personal and customer details. In 2015, the completion rate for

Personal Information Protection Act training was 100%. To effectively protect the privacy and moral rights of all customers

as well as to prevent any theft, tampering, damage, loss or leaking of data, we have upgraded our IT security process to

international standards through ISO/IEC 20000 and ISO 27001:2013 IT service and security certification in accordance

with the "Information System Security Standards for Financial Institutions", "Security Control Standards for Financial

Institutions Operating Internet Banking Services", "Regulations Governing the Protection of Personal Information Files for

Non-Government Agencies Designated by the Financial Supervisory Commission" and the information security standards

of international credit card associations. In 2015 both First Bank and First Securities achieved certification for ISO

27001:2013. This will enable to safeguard the personal information of our customers in an age of high-speed technological

innovation as well as strengthen the confidentiality of internal business information. In 2015, there were no customer

complaints with outside agencies on the violation of privacy or leaking of information by FFHC.

The sheer number and variety of new financial products coming on to the market is very bewildering. To let customers know

what financial planning products are best suited to their needs, sales representatives at each company must comply with

the regulations such as "Rules governing the behavior for wealth managers and financial product salespeople". All customers

must complete the Know Your Customer (KYC) assessment before being provided with suitable investment portfolios

or products based on their wealth management requirements, investment attributes and risk tolerance. Regular system-

generated reports are then used to analyze customers' investment turnover, investment performance, risk attributes and

the appropriateness of their investment portfolio. We also regularly convene "Financial Planning Product Review Meetings"

and "Financial Planning Product Performance Management Working Group Meetings" to classify all financial planning

products by level of risk as well as examine the performance and risks of listed products. The financial planning product

research and analysis system is also used to help manage the risks of customers' investment portfolios. Advertising and

marketing activities are also required to conform with laws and self-management regulations in order to live up to the

trust that the customers placed with us through their assets and fulfill our obligation for prudent management. In 2015 no

FFHC subsidiary sold any banned or disputed product, or provided products and services that were inadequately labeled,

or violated the relevant laws and self-management regulations. There was however some conflict between the marketing

script used by First-Aviva Life Insurance for telemarketing of insurance products and the "Regulations Governing Business

Solicitation, Policy Underwriting and Claim Adjusting of Insurance Enterprises." The sales process has since been reviewed

and revised.

Green Finance


2015

2-12-22-3

73

3

First Bank

First-Aviva

First Securities

A total of 14 financial planning product review meetings were convened

throughout the year. The review meetings approved 124 financial planning

products and gave provisional approval to 81 products. 26 products met the

criteria for de-listing.

A total of 45 internal product R&D team meetings were convened during

the year to discuss product development, listing, direct changes and partial

amendments. The product development committee was also convened

9 times. Product performance after listing was reported at the quarterly

meetings of the product development committee.

Company Name Key Task

1.The product review committee met five times during the year.

2.All marketing campaigns and advertising were reviewed in accordance

with the advertising checklist then submitted to the Taiwan Securities

Association for vetting before being published.

3-1 Energy-saving and sustainability

FFHC signed up to the Carbon Disclosure Project (CDP) set up by leading international

institutions in 2013. We respond to the regular questionnaire surveys distributed by the

CDP and actively participate in overseas environmental protection events. The platform

allows us to learn about how large enterprises around the world are currently managing the

operating risks from climate change. In addition, FFHC subsidiaries' sites and the 190 First

Bank branches in Taiwan also turned off their lights for 1 hour at night as part of the "Earth

Hour" (3/28, the last Saturday of March each year) and "Earth Day" (4/22) to do our part for

energy-saving and carbon reduction.

First Environment- Caring for the land

3-1 Energy-saving and sustainability

3-2 Yunlin Organic Edamame Carnival

3-3 Adoption of toxin-free rice paddy

3-4 Green volunteers

3-5 Environmental conservation

74

3-2 Yunlin Organic Edamame Carnival

To give card-holders a way of supporting and identifying with the philosophy of rehabilitation through organic agriculture

through the Leezen co-branded cards, FFHC issued a warm invitation to card-holders to participate in the "Yunlin Organic

Edamame Carnival" co-organized by the Tse-Xin Organic Agriculture Development Foundation. Displays on the organic

concept, tastings of vegetarian cooking and farmers' market introduced card-holders to the vitality and health of going

organic. "Bean-bikes" were also provided on the day to let card-holders ride to the Mayuan Organic Edamame Farm, bend

down and pick organic edamame beans, experience the wonders of the organic soil, and feel the hardships of the farmers.

The event won praise from card-holders for helping to build bridges with organic farms.

The "Yunlin Organic Edamame Carnival" was held to cultivate an appreciation for nature among the general public.

Related activities and classes were also organized to let participating adults and children learn about the benefits of

organic agriculture. The event was well-received.

3-3 Adoption of toxin-free rice paddy

FFHC took part in the

"Toxin-free Rice Paddy"

a d o p t i o n c a m p a i g n a t

S a n x i n g To w n s h i p i n

Y i l a n C o u n t y a i m e d a t

boosting public interest in

land conservation for the

second consecutive year.

Apart from increasing the

income of rice farmers,

it also encouraged rice

farmers to practice toxin-

free cult ivation and to

develop the agricultural

economy. The process of

pesticide-free agriculture

taught a l l part ic ipants

Adoption of "Toxin-free Rice Paddy"

to respect the land and love the planet. The harvested rice was donated to disadvantaged groups and low/medium-income

families in the community as part of our policy of caring for local communities.

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75

3-4 Green volunteers

FFHC launched the "Green Volunteer Recruiting Program" which used

Facebook and the First Bank monthly magazine to recruit employees

to help with the harvest at under-manned organic farms. Their insights

from participating in the event were then shared through the First

Bank monthly magazine to maximize their influence and level of

participation. So far, the recruitment quota for organic volunteers has

been frequently filled right away upon release. This has helped small

organic farmers overcome manpower shortages. In 2015 a total of

44 green volunteer events were hosted, attracting 1,103 people and

benefiting 2,449 people.

FFHC offers two teams of volunteers each month to help organic farms with seedling cultivation and harvesting. The volunteers always respond with enthusiasm despite the chilling winds or blazing sun.

3-5 Environmental conservationFFHC launched the low-carbon vegetarian "1 Movement" in 2013. Employees are asked to not eat red meat one day a week.

No red meat is served by the employee cafeteria on that day either to promote "Eat vegetables for health, eat less red meat".

This represented actual action taken to promote energy-conservation and carbon reduction while also reducing the amount

of waste cooking oil.

Organic agricultural products are marketed through the FFHC employees co-op. The employee cafeteria also serves organic

vegetables every week. These are all sourced by personnel from General Administration who visit the organic farms in

person to verify their production process. As every vegetable can be traced to their source this ensures the peace of mind of

employees.

Every dish is labeled with their calorie count and employees can pick the dishes they like. The organic vegetables are always the most popular dishes with employees.

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Green Finance


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77

The "Sen ior Ass i s tant Manager Career Development Program" was introduced in response to an anticipated wave of retirements and accelerate the cultivation of management cadre. Online Life Orientation Assessment, the Career Personality Aptitude System and 180-degree Management Competency Feedback and other tests are used to help assistant managers understand their own capabilities; outstanding branch managers also serve as the "internal coach" for trainees to pass on their management experience and help them become high-performance managers. Develop customized "Individual Development Plan" along with identifying and cultivating talent with high performance or potential.

Organized financial service system courses on big data analytics, Bank 3.0 digital finance development trends, and financial technology; assigned employees to attend courses on third-party payment services, online financial development trends, Fintech and digital marketing. Optimized internal and external training for sales and management; hosted 307 e-learning courses. Online training was used by management and non-management personnel 61,349 times. Each person received on average 58 hours of online and physical training hours. Average training cost was NTD6,580.

Carried out personnel competency

and manpower evaluations to

strengthen career management

Prepare for Bank 3.0 development

trends by enhancing the ability of

employees to use digital learning for

professional know-how

Happy workplace

78

53% of managers are female. The majority of managers and employees are female so gender equality has been realized. Chosen for inclusion in the "Taiwan High Compensat ion 100 Index" for the second consecutive year. Continued to participate in the salary surveys of business management consulting companies and to gather the remuneration standards of our overseas competitors on a regular basis to ensure the remuneration and benefits of our overseas units are reasonable and competitive.

When a capital increase by NTD23.52 billion in cash was conducted in 2015, 15% of the new stocks were retained and offered to employees of group companies at below-market prices. The offer was welcome by most employees and all options were exercised. FFHC provides multiple channels for employee communications and whistle blowing, with whistle blowers protected against improper treatment. The internal website, the bi-weekly publication and monthly publication all enable employees to keep track of company developments.

The following initiatives were launched to promote the balanced physical and mental development of employees: psychological counseling, regular clinics, full-time nurses and support for serious illness/injury, nutritionist advice and comprehensive insurance plans. A tobacco-free workplace is enforced. Public areas are also regularly tested on CO2 concentration, illumination and drinking water. Workplace safety and health representatives are appointed with regular emergency drills carried out. Received the Health Promotion Mark in 2015 (Healthy workplace certification offered by the Health Promotion Administration). Subsidies are provided for marriage, parenting, funerals, birthdays, employee travel, local/overseas continuing education, and serious illness or injury. Unpaid leave is offered for parenting, continuing education and caring for sick or injured dependents. Breast-feeding rooms have also been certified for excellence.

Equal pay for equal work and

providing a fair and competitive

compensation scheme

Providing support channels

and stock options from capital

increase to encourage employee

participation and feedback

Building a happy workplace and

promoting employees' physical

and mental well-being

79

1

First Work - The right people in the right place

1-1 RecruitmentThe great importance placed on talent by FFHC can be seen in its recruitment events. The annual recruitment drives all strive for innovations and breakthroughs. Apart from having top executives take an active role in "Campus Recruitment Events" and describe FFHC's corporate vision, outstanding alumni who are now management associates also share their experience to boost interactions with students, and stimulate interest from students of all academic backgrounds in the finance industry. 2015 marked the 11th year of the MA program. We recruit the top talent in all fields based on our business requirements including many qualified attorneys and accountants as part of our elite development strategy.

The Group has used outside professional organizations for recruiting new employees in order to prepare for the challenges of digital finance. We have also promoted our merit-driven policy and increased exposure for our recruiting programs through different media channels including announcements, campus information sessions and the Internet. Our First Bank subsidiary also used a variety of channels including outside headhunting agencies for the first time in 2015 to recruit mid- and high-level managers for headquarters. Internal and external recruiting processes were also used to hire specialists in programming, web design, risk management, financial marketing and big data analytics. In addition to raising the quality and competitiveness of our workforce, we are also stepping up our recruitment of new blood in digital technology to prepare for future manpower needs linked to digital finance transformation.

The principle of equal pay for equal work is followed during recruitment. We provide competitive compensation and employ our full quota of handicapped employees who follow the same career development path as regular employees. At the same time, we organize

Employees form the core of the financial service industry. FFHC has not only has brand image for solid management but is also working actively to build a "happy workplace." We have long followed a philosophy of "treating employees as the most precious company assets." We are committed to creating an ethical, open and cooperative working environment for employees. We also encourage employees to realize their full potential. We have actively responded to government policy by signing the "Happiness Enterprise Declaration" with no retrenchments and salary cuts. Promotions and salary increases are used to reflect business performance in an appropriate way each year to share the fruits with employees.

1-1 Recruitment

1-2 Employee structure

1-3 Diversified employment

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1-2 Employee structure

At the end of 2015 our Group had 9,210 regular employees. This included 3,850 men and 5,360 women for a male:female ratio of 42:58. 18% of our workforce are in management and women account for 53% of the management. The fact that women outnumbered men in both management and employee roles showed that we offer a fair workplace with gender equality.

The Group employed 491 atypical employees (including casuals and security), or 5.3% of the total workforce.Atypical employees that perform well are offered the opportunity to become regular employees when openings become available. In 2015, a total of 6 atypical employees became regular employees.

2015 Employee Demographics - Education Total no. of employees in 2015 - By role

Regulatory

Employees

University4,051

Graduate1,598 Post-Graduate

7

Junior High School or below85High school / Vocational school1,009

Technical College2,010

summer bank internships for university students in partnership with the Ministry of Education. This gives students interested in entering the financial sector a chance to have a taste of the industry. Temporary summer positions are also provided to economically disadvantaged youths to not only enhance industry-academic cooperation but also hopefully, change their lives. In this way, CSR is realized in our hiring strategy. In 2015 we hired 992 new employees and the ratio of women to men was 60:40. All of our offices also give preference to local residents to ensure their employment opportunities. Our core operations are located in Taiwan and 100% of top executive positions are held by local nationals. 1-1

1-2


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Male 772

Male 3,078Female 869

Female4,491

New employees as a percentage of total workforce

2015

Taiwan

Overseas

Total

No. of employees at end of

2015

9,210

5.80

0.71

6.51

247

50

297

179

6

185

88

2

90

21

7

28

535

65

600

3.88

0.38

4.26

125

25

150

160

6

166

60

3

63

12

1

13

357

35

392

Female | Male Female | Male Female | Male Female | Male Female | Male Female | Male

Percentage of total at end of year (%)

Total

Employee Aeg Distribution

Management

Employee

Less than 30

30–39 years

40–49 years

50 and above

82

5%

39%

13%

32%

28%

63%

20%

30–39 years34 women / 43 men

30–39 years1,981 women / 1,004 men

Under 30700 women / 296 men

40–49 years244 women / 286 men

40–49 years

1,072 women /1,014 men

50 and above591 women / 443 men

50 and above738 women / 764 men

Separation rate

New hire rate in the last 3 years Separation rate over the past 3 years

Number of Atypical Employees during the Year

Female Male Female Male

4.643.54

2013

2015

Female

Male

Total

Total

Cleaning

45

2

47

491

Administration

143

85

228

Security

7

208

215

Driver

0

1

1

20132014 20142015 2015

6.10

4.23

6.51

4.85

4.26 3.823.81

3.59

2.95

4.39

2015

Taiwan

Overseas

Total

No. of employees at end of

2015

9,210

4.29

0.56

4.85

79

28

107

161

14

175

75

1

76

80

9

89

395

52

447

3.48

0.34

3.82

56

21

77

111

5

116

54

4

58

100

1

101

321

31

352

Female | Male Female | Male Female | Male Female | Male Female | Male Female | Male

Percentage of total at end of year (%)

TotalLess than 30

30–39 years

40–49 years

50 and above

1-3 Diversified employmentThe Group embraces multiculturalism in our recruiting policy every year. Everyone can apply and there are no restrictions based on school, major, age, background or gender. We have also taken a long-term interest in the welfare of minority groups such as the handicapped and indigenous peoples. In 2015 we employed 95 handicapped employees and 5 indigenous employees on the same remuneration and benefits as regular employees. The "National e-Job Network" of Taipei City Employment Services office publishes job openings for handicapped people.Handicapped employees made up of 1.03% of our workforce in 2015 and satisfied the government quota. To support the "Work-Study Program for Youths from Economically Disadvantaged Families" of the National Youth Commission of Executive Yuan, we employed 42 summer part-time workers. We also supported the "University Student Banking Internship" activity organized by the China Youth Corps in 2015 by providing 10 summer internship opportunities for economically disadvantaged youths.

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2To realize the goal of becoming a happiness enterprise, create a positive work environment, maintain the physical and mental well-being of employees as well as build up the loyalty of employees and their dependents, we provide a wide range of employee healthcare plans and benefits. The key benefits and care measures are as listed below:

First Compensation - Diverse benefits

2-1 Compensation optimization

2-2 Employee warrants

2-3 Diverse welfare subsidies

The part-time workers and interns were able to learn about the practical side of finance and improve their future employment prospects.

The cultivation, development and employment of top local talent is one of FFHC's key overseas management philosophies. In 2015, First Bank branches or offices in Southeast Asian countries such as Vietnam, Laos, Cambodia, Burma and Singapore hired 40 new local employees. They will not only help expand our business but also highlight our Group's acceptance of multiculturalism. To identify students with high potential in Southeast Asia, First Bank hosted two "Southeast Asia Elite Financial Camp" events in 2015. Overseas compatriot students in Southeast Asia interested in entering the financial sector were able to use finance visits, workshops and corporate internships to learn more about our business model. We also took part in recruitment events hosted by offices and student associations in Hong Kong and Macau to contact current students or pending graduates interested in the banking industry. These are added to our overseas local recruitment database and provided to overseas unit for consideration.

To fulfill our corporate social responsibility, FFHC actively sponsors domestic sporting events especially the training and development of national table-tennis players. Apart from providing First Bank players and coaches with subsidies, players who demonstrate exceptional preference are also given preference during hiring. In 2015 we employed 2 national-level table-tennis players on a full-time basis so they can concentrate on international competitions and training as well as fulfill their potential.

84

Employee dormitoriesand guest houses

Various subsidies

Leave regulations that surpass the legal requirement

Establishment of employeewelfare committee

Consolation payments

1.Employee guest houses in Beitou, Penghu and Hualien 2. Employee dormitories in Taipei City, New Taipei City, Hsinchu, Taichung, Tainan, Kaohsiung and Hengchun

1. Subsidy for continuing education at university2. Subsidy for learning foreign language3. Subsidy for professional exam entrance fees4. Subsidy for birthday celebrations, annual parties and holiday travel5. Subsidy for funerals6. Distribution of gift boxes on the three major holidays

1. 14 days of paid special leave and 30 days of paid sick leave (except for employees on their first year)2. Marriage and bereavement leave all have more days than stipulated by the Labor Standards Act

1. Subsidies for employee self- improvement trips, employee birthdays and souvenirs for retired personnel 2. Subsidy for hospitalization of family members, funeral expenses and death benefits

1. Consolation payment for serious illness or injury2. Consolation payment on the three major holidays for retired employees3. Consolation payment for the family of employees who passed away

2-1 Compensation optimization To fulfill our care of duty to employees, we have defined retirement rules in accordance with the "Labor Standards Act" and "Labor Pension Act". Apart from making mandatory pension contributions we also refer regularly to salary surveys conducted by professional organizations. Our annual salary is currently in the P65 range of the market (P65 means our standard of compensation is superior to 65% of our competitors). By providing employees with competitive remuneration plans and comprehensive benefits packages, we build up employee loyalty and maximize their potential. This translates into shareholder returns and a mutually beneficial outcome for customers, employer and employees.2014 was a bountiful year for the finance industry and the profitability of the First Bank subsidiary exceeded anticipation. To allow

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Happiness Enterprise

2-2 Employee warrants

When a capital increase by NTD23.52 billion in cash was conducted in 2015, 15% of the new stocks were retained and offered to employees of group companies at below-market prices. They were also encouraged to hold company stock on a long-term basis. The offer was welcome by most employees and all options were exercised.

Note: In 2014 there were 7,270 non-managerial employees. In 2015 there were 7,569 non-managerial employees.

employees to share in the success of the company, in 2015 we not only increased the salary adjustment for promotions by 2.3% but also revised the standard of remuneration to give a 3% increase across the board. Total salary increase therefore amounted to 5.37% and was far higher than the market average of 3.9%. This demonstrated our sincerity when it comes to looking after our employees.In 2015 FFHC spending on employee welfare amounted to NTD14,313,356,000.

We follow the principle of fair and reasonable compensation in employee compensation at FFHC and all of our subsidiaries. There is no difference based on gender or other factors. The ratio between the starting salary for men and women is 1: 1 so there is equal pay for equal work. The ratio between the starting salary and the local minimum wage is 1.88: 1; We also take into account remuneration surveys conducted by management consulting firms. The remuneration statistics are analyzed and used as a reference for adjusting the remuneration system and make it more fair, reasonable and competitive.

For employee compensation at overseas units, we introduced the compensation survey results of well-known management consultants as well as local economic data, compensation trend forecasts and information exchanged with local competitors. The pay grade principle was used to gradually adjust the compensation standards of local employees overseas. We are also focusing on global human resources issues to better look after the livelihoods of local employees and compliance with labor laws. On living subsidies and accommodation for expatriate bank personnel, we not only regularly track the local cost of living and rent to adjust the related subsidies, but also regularly send staff overseas to check on local economic conditions and the needs of expatriate personnel. This ensures our employees are properly looked after.

To share the company's success with all employees, employee remuneration, bonuses and dividends are based on business performance in terms of net income before tax,net yield and return on assets. They are also adjusted based on future risks.

Managerial Role

General Role

Cost of benefits for non-managerial employees for the year

Average cost of benefits for non-managerial employees for the year

Female

100%

100%

2014

NTD 8,050,399,916

NTD1,107,345

Male

106%

106%

2015

NTD 9,176,845,449

NTD1,212,425

Growth

14.0%

9.5%

Remuneration, benefits and pensions

Taiwan is the main business location for our company and subsidiaries. To compare the remuneration of male and female employees in Taiwan during 2015, for general employees the ratio between women and men's annual salaries is 1:1.06; for managers the ratio between women and men's annual salaries is also 1:1.06.

86

2-3 Diverse welfare subsidiesFFHC offers a comprehensive and wide-ranging benefits scheme in response to Taiwan's aging population and low birth rate. The human resources system not only protects the promotion prospects, performance evaluation and benefits of employees on unpaid leave but also offers different kinds of support and assistance for employees who need child care leave, take care of injured/sick dependents, or seeking local/overseas continuing education. In 2015 a total of 130 people applied for unpaid maternity leave and the return rate reached 86%; the retention rate one year after reinstatement for employees who went on unpaid child care leave was 90%.

Note: The number of actual returning employees in the table below included those returning early

2015 No.of applicants for unpaid child care

Male

Female

Total

15

115

130

11

98

109

13

81

94

4

86

90

3

78

81

118.18%

82.65%

86.24%

75.00%

90.70%

90.00%

2015 No.of returning employees expected

2015 No.of returning employees expected

2015 No.of actual returning employees




2014 Employees return from unpaid child care leave and stayed for at least 1 year

2014 Employees return from unpaid child care leave and stayed for at least 1 year

Reinstatementratio

Retention rate

Results of employee care initiatives in 2015

Sports and recreational activities

Various employee clubs have been set up including sporting clubs such as table tennis, yoga, and marathon, as well as cultural clubs such as family reading, flower arrangement, and photography. Subsidies were also provided for employees in 17 regional areas for the hire of basketball, badminton, softball and table tennis venues. Annual mountain climbing activity hosted for employees, retired employees and their dependents. Other events included table tennis/badminton competition for employees and dependents, employee basketball shooting competition, the First Bank Cup pool competition, bridge championship,singing competition, charity blood donation drive, beach clean-up and employee day-trips. These helped build up employee loyalty while also enhancing their physical and mental well-being.The various sports and recreational activities achieved an attendance of 24,155 people during the year.In 2015, NTD111,770,000 were spent on employee self-improvement trips. For annual parties subsidies were provided for 9,210 people totaling NTD 20,730,000.

(1)

(2)

(3)

(4)

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100

80

60

40

20

0

87

Health Care

Employeehealthcareand nutritionmanagement

(1)

(2)

(1)

(2)

Each company provides regular medical check-ups better than required by law for employees aged 65 and below. Managers receive two days of official leave each year to undergo medical check-ups at the hospital. Employees stationed overseas below the grade of assistant manager have one day of official leave each year to undergo medical check-ups locally or back in Taiwan. For all other personnel medical check-ups, partner hospitals visit each unit to conduct the health exam every two years. Personnel with anomalies are also notified for further check-ups. Employee dependents may also participate at their own expense. Dependents enjoy the discounted group pricing and the same check-up items. To look after the physical and mental health of employees on night shift we began offering annual health exams in 2015.

FFHC has set up a health section on the Intranet and have full-time nursing personnel on staff. For the top 10 employee health problems and queries, we organize health information and health consultations on an ad hoc basis. A professional clinic and blood pressure monitors available to provide employees with a place for emergency medical treatment and rest. When the (executive) Board meetings are convened a nurse is on-hand to provide blood pressure measurements in order to remind the top management to look after their personal health. In 2015 we hosted several health seminars on topics such as "Health Land Mines - The Three Highs of Chronic Disease", "DIY Stress Relief and Improving Your Immune System", "Who Stole Our Health?" and "General Disease Prevention". These were attended by a total of 473 people. Three "Weight Control Classes" were also held attended by 101 people.

Specialist physicians host clinics at the company every Monday and Wednesday afternoon and employees do not have to queue or make a booking. This allows them to receive professional medical advice even during work, compare and analyze their results from the last two health exams, and check on employee health or alerts. For personnel at high-risk of heart disease, the physicians provide follow-ups and health advice. To reduce personal risks for employees and customers, the Headquarters buildings and business units began installing AED (Automated External Defibrillator) in 2013. By the end of 2015 a total of 25 AEDs have been installed at 24 units and 585 people have been certified in their use.

88

S u p p o r t a n d C o u n s e l i n g f o r Seriously Sick or Injured Employees

Co m p re h e n s i ve Insurance Plan

(3)

(4)

(5)

(6)

(1)

(2)

First Bank has established a serious illness or injury support and counseling mechanism. Apart from giving employees NTD 10,000 in consolation payment when they become seriously ill or injured, First Bank has also set up a "Family Association" and gives out the book "From Critically Ill to Running Marathons". In this way, we continue to give employees support while encouraging employees to support each other and share their medical experiences.At the end of 2015, there were a total of 86 seriously ill or injured current employees. Dedicated nursing professionals check up on them at different times over the phone and helped with finding cancer-related information. 152 expressions of support were conducted during 2015.

Apart from labor insurance and national health insurance in accordance with the law, the subsidiary First Bank also assists employees with group insurance for accidents, injury, hospitalization and cancer. The insurance plan is open to employees, their dependents and retired personnel. In 2015 a total of 17,162 were enrolled; First Securities, First-Aviva and First Securities Investment Trust also provide group insurance coverage. A total of 1,354 employees were enrolled at a cost of NTD9,529,000.First Bank personnel stationed overseas are not only covered by local group medical insurance but can also enroll in the International SOS for emergency medical assistance.

The "Abnormal Workload-Triggered Diseases Prevention Plan" and "Human-Factor Hazard Prevention Plan" were drawn up in 2015. Employees at high risk due to "shift work, night-time work and long-work hours" were provided with health advice by physicians.

The "Employee Self-Perceived Musculo-Skeletal Symptoms" survey was conducted at the end of 2015. Corrective action will be monitored to track progress of improvements.The "Maternal Employee Health Protection Plan" was launched in 2015 to provide physical and mental support for pregnant employees. The employee, their direct superior and the unit manager are asked to jointly fill out the "Female Employee Maternal Health Risk Assessment Form" in order to conduct risk assessment of their work, hazard control, risk management and work adjustment. These measures are intended to protect the health of the mother. Telephone calls are also used to express support and provide health education as well as remind them about precautions during pregnancy and after giving birth. They are also informed about childbirth subsidies and related information.Our Company operates an employee cafeteria with professional nutritionists retained to design the menu and cooking process. An emphasis is placed on low-oil and low-salt. We also have arrangements with organic vegetable farmers to supply fresh and healthy cuisine. The main dish plus three side-dishes cost only NTD40. Each dish is also labeled with its calorie count and the total calorie count of each meal is kept between 600 – 800 Kcal so employees can choose what they want based on their personal preferences and physical shape. The scheme has proved very popular with employees. In addition, all of the vegetables used by the cafeteria are supplied by contract farms and every vegetable can be traced to its supplier to ensure the health of employee food. In 2015 the cafeteria was used by an average of 977 people a day.

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P r o m o t i n g balance between work and family for employees

Female employees may apply for paid menstrual leave. In 2015 this was applied for by 119 people and average duration was 10.82 hours.If a pregnant employee feels unwell and is diagnosed by the doctor as requiring rest, they may apply for up to 44 days of sick, special or extended sick leave. This was applied for by 90 people in 2015 and average duration was 16 days.FFHC Headquarters building's breastfeeding room was certified for excellence by the Taipei City Department of Health. Access control ensures a safe, independent and clean environment for employees. In 2015 the breastfeeding was used on average 593 times a month.

If an employee must take care of a family member personally due to vaccination, serious illness or other major events, they may apply for paid family care leave. This is limited to 7 days per year. In 2015 this was applied for by 420 people and average duration was 5.78 hours.To encourage employees to increase the birth rate, we offer our employees a child birth subsidy of $3,600 per child. A total of NTD910,000 was disbursed in 2015.For employees who require childcare services, First Bank has signed an agreement with a well-known national chain to provide all employees throughout Taiwan with discounted daycare rates. Education subsidies are also provided for employees' children. A total of NTD15,950,000 was disbursed in 2015.To increase the amount of time employees spend with their families, First Bank introduced the "Extended Consecutive Leave" scheme and listed this as a priority in internal audits. Employees who take 10 days of leave immediately receive NTD5,000 of holiday assistance. If they take 14 days off then they receive NTD8,600. This is intended to avoid employees neglecting their families due to work. Subsidies totaling NTD25,580,000 were disbursed in 2015.First Bank has defined the "Guidelines for Unpaid Leave to Care for Sick or Injured Employee Dependents" to provide employees with practical support and help them balance work with family. First Bank, First-Aviva and Jin-Chuan Child Safety Foundation have partnered to promote proper child safety knowledge.This included hosting of drawing competitions, child safety family camps, the production and distribution of illustrated child safety books, charity flea markets and other events. All of the events were open to employees and their dependents.The communication of safety knowledge not only strengthened the safety net for children but also gave employees and their families an understanding of the company's charity policies and actions. This in turn enhanced their loyalty and support for the company.

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

As a signatory to the Chinese National Association of Industry and Commerce, Taiwan "Happiness Enterprise", we believe that employees should "balance work and life". To help employees achieve a balance between work and family, we have instituted a family-friendly policy to support our employees and their families.We have made the following progress:

90

3

S u p p o r t f o r

retirement

All Group subsidiaries have defined retirement schemes and contributes to pension fundsin

accordance with the "Labor Standards Act" and "Labor Pension Act."Special retirement plans are

also offered when necessary.

To thank retiring employees for their contributions,First Bank presents each with a

commemorative medal, a pure gold bank ID badge, consolation payments on the three major

holidays, and an annual retiree New Year banquet.Retired personnel and their dependentsare

also invited to take part in mountain hikes, sports and recreational activities as well as talent

classes.

(1)

(2)

First Workplace- Friendly environment

3-1 Shorter work hours

3-2 Sexual harassment prevention

3-3 Human rights policy and training

3-4 Promotion of a friendly workplace

91

3-1 Shorter work hours

3-2 Sexual harassment prevention

3-3 Human rights policy and training

To combat the prevalence of longer work hours in the banking industry and realize the goal of becoming a happy enterprise, First Bank has introduced corrective measures for overtime management. For units that finish work late for two consecutive hours, the unit manager is not only contacted by phone to promote the philosophy of "efficiency at work, balance in life." We also send out personnel to each branch on a rotating basis to audit the overtime situation. After the implementation of the improvement measures, the average clock-off time had improved by one hour by December compared to July 2015.

To foster a friendly workplace where employees are safe from sexual harassment, we have announced and implemented the "Regulations on sexual harassment prevention, complaints and investigation". Random inspections of posters on sexual harassment prevention and laws were conducted in northern, central and southern Taiwan as well. The company website now contains information on sexual harassment prevention, along with a sexual harassment telephone hotline, fax hotline and e-mail handled by dedicated staff. All group companies have also included sexual harassment prevention and handling procedures into new employee training courses or legal education classes. Manager training classes also regularly reinforce managers

There is no discrimination on the rights enjoyed by employees on the basis of race, gender, employment type, promotion or other situations. All have the right to equal pay for equal work, freedom from sexual harassment, and job security for female employee during pregnancy. We adhere to and ensure that employees enjoy internationally accepted labor rights, and related information is openly available internally. All business sites follow local laws and regulations on human rights. Apart from regular training on sexual harassment prevention and the Personal Information Protection Act, new employee training also explain in full the human rights system on work rules, HR

At all group subsidiaries there is no discrimination employees during recruitment, selection, hiring, assignment, career development, remuneration and benefits, promotions, education & training, and retirement plans on the basis of race, class, language, thought, religious, political affiliation, ancestry, place of birth, gender, sexual preference, age, marital status, appearance, facial features, physical and mental handicap, or union membership. All provide an equal-opportunity workplace. There were no human rights violations or incidents of discrimination in 2015. None of the subsidiaries were also involved in mergers, acquisitions or major investment agreements.

Our HR regulations explicitly ban the hiring of people under the age of 16. We also adhere to the Labor Standards Act in not using force, threats, imprisonment or other illegal methods to force workers to engage in labor.

To maintain human dignity and basic human rights, we have set economic, social and environmental balance as well as sustainability as our targets. Our company and our vendors are all committed to following international recognized labor rights such protecting the legal rights of employees, enforcing a non-discriminatory hiring policy, ban on child labor and eliminating all forms of forced labor. Except in the case of business demand or personnel training, the rotation of personnel between roles and units are based on employee willingness and the five transfer principles defined by the Council of Labor Affairs. We not only give employees a full understanding of company operations but also give preference to employees with high performance and potential. This forms a part of our critical personnel career management and successor cultivation plan; we also encourage employees in southern and central Taiwan to apply for positions in northern Taiwan to learn about core competencies, boost their professional experience, accelerate talent development and improve the quality of our human resources.

understanding and handling of sexual harassment; sexual harassment handling experts are also regularly assigned to attend related workshops and outside classes in order to improve their professional know-how and investigative skills. A "Sexual Harassment Complaints Committee" has been set up as well. It consists of 9 committee members with female committee members in the majority. The committee members serve for 2 years and their terms may be extended. The members of the committee must possess actual experience with handling sexual harassment, as well as a background in law, social sciences and human resources. An investigation must be launched within 7 days of a complaint being received and a report submitted to the Committee for review. The case must be finalized within 2 months. In 2015 our company and subsidiaries received no complaints of sexual harassment.

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3-4 Promotion of a friendly workplaceTo become a model green enterprise we have conducted a series of planned refurbishments. The FFHC Headquarters and IT buildings had previously achieved the highest-possible Diamond class of the "MOI Green Building Mark." As of 2015, a further five buildings (Zhongxiao Road Branch, Guangfu Branch, Wanhua Branch, Gangshan Branch and Luodong Branch) have also been converted into energy-saving, carbon-reducing, water-saving and low-pollution Diamond-class green buildings. To actively support the government's environmental sustainability and greenhouse gas reduction policies, we became the first company in the Taiwanese financial industry to achieve both "ISO 50001 Energy Management System" and "ISO 14064-1 Greenhouse Gas Inventory" certification after passing audits by SGS Taiwan. We are continuing to promote the following work environment optimization and workplace safety protection initiatives:

Smoking is completely banned on the premises of financial institutions under the Tobacco Hazard Prevention and Control Act. All units have enforced the requirement to "prominently display the No Smoking sign at all entrances". In addition, First Bank completed the air quality testing and received the Self-Management Mark for 115 branches. We shall continue to monitor the self-improvement plans of units with higher concentrations of pollution. At the end of 2015, we received the Health Promotion mark from the MOHW Health Promotion Administration's healthy workplace certification program.

In accordance with the Occupational Safety and Health Act, the "Industrial Safety and Health Association of the R.O.C. (ISHA)" is contracted to measure the CO2 concentration and illumination in all offices every 6 months. To prevent "Sick Building Syndrome", every

To promote labor safety and health as well as prevent occupational injuries, First Bank has defined the "Safety and Health Work Rules" to lay out the operational standards and emergency response principles for OSH. These have also been registered with the competent authority. In accordance with the "Regulations for Labor Safety and Health Education and Training", new employees and current employees also undergo safety and health training. This improves employees' awareness of safety and health to forge an accident-free workplace.

(1)Tobacco-free workplace and environmental testing

(2)Implementation of OSH-related activities and training

unit regularly cleans their air-conditioners, water towers, air vents, ventilation shafts, filters, as well as the evaporator or condenser inside their air-conditioners. Drinking water from the headquarters building is submitted to the Taipei City Government Environmental Protection Bureau every 3 months fo r water qua l i t y testing. The test results all complied with regulations.

management rules, employee compensation and benefits. Union personnel are also invited to speak about employee rights relating to the Occupational Safety and Health Act.In 2015 our employees attended human rights protection training (both physical and online) 1,558 for a total of 2,597 hours of human rights-related training. There were no violations of human rights of indigenous rights at any company in 2015. In addition, our company has also communicated our the content and spirit of our human rights policy to the security company. This is so they can incorporate and understand our human rights policy when organizing preliminary and in-service training on human rights. The proportion of security personnel who have completed training is 100% and on average, we organize 12 training sessions every year each lasting 0.5 hours.

In accordance with the "Safety Maintenance Enforcement Rules" issued by the competent authority and the internal "Enforcement Rules fop Employee Self-Defense Organization", each First Bank business unit is required to conduct an employee self-defense organization drill once every 6 months. These are divided into a demonstration and a self-rehearsal. A total of 414 self-defense organization rehearsals were conducted in 2015. 22 business units were chosen by region to conduct the demonstration drill so that other units can send representatives to learn from their example and conduct assessments. After the demonstration drill, each business unit then selects a date and time within one month for conducting a drill. They may also perform the drill in their assigned month according to the annual plan. At the end of the year, the top 6 designated demonstration units with the best ratings are singled out for rewards.

(3) Safety Protection

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The FFHC Headquarters building has a defense corps and emergency SOP in place. "ISO 14001 Environment Management System" certification was also achieved in 2015. A vice president serves as the corps commander while the heads of the Human Resource Division and General Administration serve as deputy commanders. There is also one chief director and one director. They oversee the Control Center (1 control officer, 8 controllers) and five teams, these being the Firefighting Team, Engineering Team, Defense Team, Supply Team and Medical Team. Each team has a team captain, a deputy captain and several team members (assigned as necessary). In the event of an emergency, they can take the necessary

Chain of Command for the First Bank Headquarters Defense Corps

Commander, Deputy Commander

Control Center Firefighting team

Engineering team

Defense team

Supply team Medical team

Executive Director, Director

Management of all civil defense corps

affairs

Alarm triggering, coordination and dispatching of mission teams

Fire prevention and emergency rescue

Emergency repairs to buildings and equipment

Security and support for fire, medical and engineering teams during disaster response

Supply materials, equipment and drinking water as well as provide emergency assistance

Bandaging, transportation, first-aid and evacuation of injured people

Coordination of all civil defense

corps affairs

response measures at any time to protect the safety of employees and property in the FFHC headquarters building. In 2015 two firefighting workshops and drills were conducted as well as one corps-level basic training session.

94

First Bank has defined the following response mechanism to prevent natural disasters, accidents and epidemics impacting on bank operations:

Disaster Response Mechanism

Disease Response Mechanism

First Bank Headquarters crisis center

First Bank business units

FFHC Risk Management Division

First Bank managers and business units

President, FFHC

Chairman, FFHC

The "Crisis Response Principles" and "Crisis Response Manual" have been drawn up. If a unit is affected by fire, explosion, hurricane, flooding, earthquake, robbery, bank run, group protest or epidemic, it should immediately notify the crisis center at the main branch and ask for assistance from the head office's business administration unit. To monitor and respond more effectively to a crisis, SMS is used in addition to telephone contact to notify branch managers in the disaster or affected region to report the damage situation by a given deadline. The information is then collated and submitted to the management and relevant units.The crisis response system proved its worth during the 2014 Kaohsiung gas explosion and the Meinong Earthquake in early 2016. The bank was able to swiftly collate and report the situation at all business units in southern Taiwan. Nearby employees were also notified to stay clear, reducing the risk of injury while maintaining normal operations. The event also showed employees the benefits and importance of regular disaster prevention drills.

To maintain business continuity and protect the health of all employees by adopting comprehensive and timely preventive measures during any kind of epidemic, the "Guidelines on Epidemic Response and Prevention Measures" were drawn up and different response strategies developed based on the threat levels published by the Centers for Disease Control, R.O.C. Information relating to the epidemic is also posted on First Bank's internal website (My First Bank) under the Announcements section for employees to view.

Epidemic status Chain of commandTrigger point for our bank'spreventive measures

No human infection by animal flu virus yet

Current situation Human Resource

Division

First confirmed case reported overseas

First confirmed case detected domestically

Patient not a bank employee Patient

Patient is bank employee

Human Resource Division

First Bank Quarantine Response Team

Human Resource Division

Human infection by animal flu virus with epidemic potential

Animal or animal-human hybrid flu virus has resulted in cases of human transmission or small outbreaks, but an effective human-to-human transmission vector capable of community-level epidemics has not yet been established.

Level

1

2

3

(4) Business Continuity Mechanism

3-4


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For employees injured at work, the Company gives occupational injury leave as required by law and in accordance with the actual situation. Employees are also assisted in submission of a labor insurance claim.Employees receive all possible assistance in the shortest possible time to minimize harm. In 2015, 32 people applied for leave due to occupational injury.Leave due to occupational injury totaled 876.5 days and the work injury rate was 0.73%. There were no deaths due to occupational injury in 2015. The occupational injury statistics for Taiwan in 2015 are shown in the table below:

Female

Male

Total

Female

Male

Total

22

10

32

590

286.5

876.5

0.54%

0.19%

0.73%

6.46

3.14

9.65

1.21

0.55

1.76

32

16

48

20,070.375

5,542.875

25,613.25

0.88%

0.24%

1.12%

(5) Occupational injury

4

5

6

Epidemic status Chain of commandTrigger point for our bank'spreventive measures

Level

Domestic outbreak of flu virus transmitted human-to-human

Bank has nopatients

Case reported at our bank



Effective human-to-human transmission of animal or animal-human hybrid flu virus has been proven, leading to a community-level epidemic.

Domestic outbreak of flu virus leading to continued infections

Domestic outbreak of flu virus leading to continued infections



Effective human-to-human epidemic of animal or animal-human hybrid virus has occurred in two or more non-neighboring countries within the same geographic region

Virus has caused epidemics on at least two continents

Number of people on occupational injury leave

Days ofoccupational injury leave

Occupationalinjury rate

Percentage of days lost

Disabling injury frequency rate (FR)

Disabling injuryseverity rate (SR)

Days absent(not including leave)

Absenteeism rate

96

4

a

c

d

b e

Disabling Injury Frequency Rate (FR): Based on the total number of disabling injuries during the period in question. Disabling Injury Frequency Rate is calculated as the total number of disabling injuries for every million work hours (to two decimal places). The formula is as follows:

Disabling Injury Severity Rate (SR): Based on the total number of days lost due to disabling injuries during the period in question. Disabling Injury Severity Rate is calculated as on the total number of days lost due to disabling injury for every million work hours (to nearest integer). The formula is as follows:

Occupational injury rate :Percentage of days lost

Absenteeism rate

Disab l i ng In j u ry Frequency Rate(FR)

D i sab l i ng In j u ry Severity Rate(SR)

Days of occupational injury leave

D a y s o f l e a v e (Occupational injury + sick leave)

Frequency of disabling injuries(persons)

Total number

of days lost

x 10

x 10

6

6

Number of people on occupational injury leave Work hours Total work days

Total hours worked

Total hours worked

x 200,000=

=

=

=

First Training- Talent Cultivation

4-1 Complete development system

4-2 Global talent development

4-3 Career development

Employee know-how is what keeps the company running. To give all employees the requisite financial knowledge and skills, inspire employees' potential and increase their motivation for self-development, we have designed different training courses and learning paths for personnel in each grade. These effectively boost employees' professional competency, marketing skills and enthusiasm for their work. To enhance the digital skills and professional-know of employees in response to the coming of the digital finance age, we organized financial service system courses on big data analytics, Bank 3.0 digital finance development trends, and financial technology through each business training class; employees were also assigned to attend symposiums held by professional institutions, professional courses and overseas workshops. These covered big data analytics, third-party payment services, online financial development trends, Fintech and digital marketing.

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4-1 Complete development systemNew employees immediately enter our training system upon reporting for work. Comprehensive training plans are available from basic to advanced and advanced professionalthrough to deputy managers and managers. Apart from solid on-the-job training as well as practical experience gained through job rotation, we also organize a variety of professional training, online training, internships, language training, internal certification testing and management training. To acquire new financial knowledge and the latest industry developments, personnel are frequently sent to attend training courses and overseas development programs organized by professional training bodies. To encourage employees to continue enriching their skills, we offer subsidies for continuing education in employees' spare time. Enhancing employee skills allow them to grow and transform with the Company.

Help new employees quickly familiarize themselves with the corporate organizational structure and culture

Mentoring scheme

Enhance employees' knowledge and skills of basic operationsIntroduce important regulations, processes, internal controls and sales techniques for each task

Enhance employees' advanced specialized skillsIndustry analysis, case discussion, sharing of experience by top marketers

Go directly to the relevant unit and follow a senior internal instructor around to learn and observe the workflow and key points of each business process

Basic training Advanced training Internship

Covers corporate knowledge, basic operational skills, financial law education, team-building activities, safety and health course

Proxy scheme Job rotation

New employeetraining

On-the-job trainin

Specializedtraining

Enhance the management skills of managersManagement issues such as better communication, motivating subordinates, building team rapport and leadership

Strengthen the foreign language skills and promote a language-learning atmosphere for employeesProvide subsidies to employees attending foreign language courses at language centersSet up English courses on online e-learning platformOpen foreign language courses for Vietnamese, Cambodian and Burmese

Send to external financial learning institutions to learn about business-related competency

Management training Language training External training

Other training

98

To enhance the digital learning effectiveness of employees, FFHC's "First e-Academy" online learning system offers 307 digital courses that can host up to 400 online students at any time. Software and hardware upgrades mean employees now have a more stable and convenient user environment. English online learning courses are planned to create a self-motivated and cooperative learning atmosphere. This will not only build a comprehensive learning database but will also lead to great savings in time and energy spent by employees on travel. In 2015, managers attended real-world training 12,736 times, or an average of 33.73 hours of training per person; online training courses were attended 11,716 times with an average of 35.37 hours of training per person. Non-management personnel attended real-world training 35,890 times, or an average of 24.03 hours of training per person; online training courses were attended 49,633 times with an average of 31.85 hours of training per person. Total real-world and online training hours amounted to an average of 58 hours per person. Total employee training expenses amounted to NTD 60.60 million for an average of NTD 6,580 per person.

4-2 Global talent developmentWe believe that the cultivation of people with great potential is an essential part of corporate development. These individuals possess the core skills and values that are needed to cope with industry competition. Apart from recruiting outside talent, we also use performance evaluation matrix to identify employees with high performance or potential then tailor "Individual Development Plans" (IDP) to their professional background, language skills, and competency analysis. Key training programs include:

Training program

MA training program

Overseas management personnel program

Sales personnel for China program

Accelerated personnel development program

Training subject

Preparation of core personnel (MA)

Overseas branch management personnel training program

Sales personnel for China training program

High performance, high potential personnel

Female

Male

Total

Female

Male

Total

7,416

5,320

12,736

6,399

5,317

11,716

Total number of people

Total number of people

2015 statistics on employee attendance in real-world training and total training hours

2015 statistics on employee attendance in online training and total training hours

Total hours

Total hours

Average hours per person

Average hours per person

31,671

23,686

55,357

33,178

24,858

58,036

36.44

30.68

33.73

38.18

32.20

35.37

20,489

15,401

35,890

29,045

20,588

49,633

111,313

70,600

181,913

144,130

96,952

241,082

24.79

22.94

24.03

32.09

31.50

31.85

Regulatory

Regulatory

Regulatory

Regulatory

Regulatory

Regulatory

Non-managerialrole

Non-managerialrole

Non-managerialrole

Non-managerialrole

Non-managerialrole

Non-managerialrole

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5

4-3 Career development

5-1 Labor agreement

We provide employees with career development road maps and counseling Apart from providing a fair and reasonable evaluation system, we also use two annual evaluations as a way for managers to communicate performance targets and provide employees with the necessary assistance at appropriate times. This builds up employee consensus on individual targets set by the organization. At the end of the year, the routine evaluations are used to summarize the performance of all employees during the year. Apart from defining a fair and reasonable evaluation system with clear avenues of promotion, an incentive scheme is also used to encourage employees to focus on performance. The selection, evaluation, training and promotion of future cadre and overseas management personnel are held at regular intervals. Employee attributes, experience and specialties are compiled into a database then analyzed to provide a reference for planning the employee's career development. We also encourage employees to attend external courses in their spare time. Subsidies are provided based on their grade and the course. In 2015 there were 1,056 applicants and total subsidies amounted to NTD 5,080,000. Employees studying finance-related graduate or higher degrees in Taiwan and overseas may also apply for up to 3 years of unpaid leave. Six applications were approved in 2015.

Due to an anticipated wave of retirements and to accelerate the cultivation of the management cadre, in 2015 First Bank partnered for the first time with external consultants to introduce the "Senior Assistant Manager Career Development Program." Online Life Orientation Assessment, the Career Personality Aptitude System and 180-degree Management Competency Feedback and other tests are used to help assistant managers understand their own capabilities; outstanding branch managers also serve as the "internal coach" for program trainees to pass on their management experience, encourage them to exploit their strengths, make up for weaknesses in their competencies and strive to become high-performance managers.

The Employer-Employee Conference at the First Bank subsidiary consists of an equal number of labor and management representatives. The conference is held every month to discuss employer-employee issues such as improvements to working conditions and benefits.

All effort is made to find a mutually beneficial outcome in order to enhance employer-employee relations and cooperation.

In 2015, the labor dispute over full-time attendance by the

First Labor - Looking after employees

5-1 Labor agreement

5-2 Protection of employee rights

100

Meeting name

Employer-Employee Meeting

Occupational Safety and Health Committee

2015 Statistics on Employer-Employee Meetings and the Occupational Safety and Health Committee

No. of meetings

12

4

Proposals

36

14

To promote employer-employee harmony as well as support business development and employee welfare, First Bank signed the 3rd collective bargaining agreement with the First Bank Union on August 27, 2015. Employee attendance and breast-feeding time regulations were updated to reflect amendments to the Gender Equality in Employment Act. Employees are now entitled to maternity leave and breast-feeding breaks that exceed legal requirements. The proposal was acknowledged by Taipei City Lao-Zhi Letter No. 10437179500 from the Taipei City Bureau of Labor Affairs on September 9, 2015, and all employees notified in writing. Around 82.79% of First Bank employees are covered by the collective bargaining agreement through their union membership.

director-general of the union went through arbitration and issuing of court judgment over inappropriate labor action. A settlement was subsequently reached on June 15, 2015.

To prevent occupational injuries as well as protect the safety and health of employees, an "Occupational Safety and Health Committee" (OSH Committee) in accordance with the "Occupational Safety and Health Act", "Enforcement Rules of the Occupational Safety and Health Act", and the "Management Guidelines for Occupational Safety and Health". The OSH Committee has 7 members with 3, or 43%, being appointed by the Union.The OSH Committee takes a keen interest in various employee health and work environment-related issues. It has proposed many recommendations on safety and health, including: Protection of public safety in the offices, employee health checkup and follow-up management, as well as supervision of the safety and health management plan. These all helped to improve the execution of occupational safety and health management at First Bank.

5-2 Protection of employee rightsTo protect employee rights, important work changes must be notified as soon as possible. Our work rules and HR management regulations explicitly state in accordance with the Labor Standards Act that the establishment of new business units or the re-assignment of personnel due to business requirements must be notified in writing one week in advance. Employment may be terminated in the event of business shut down, transfer of ownership, losses, reduced business, change in nature of business or where the employee is clearly unfit for their job. Advance notice must be given in accordance with the following rules:1. 10 days' notice for employees with more than 3 months and less than 1 year of continuous service.2. 20 days' notice for employees with 1 – 3 years of continuous service.3. 30 days for employees who have continuously served for three years or more.

For overseas assignments, employees must first be assigned to the relevant domestic units for training and given reasonable time to learn about the regulations, culture and lifestyle of the destination country. This will shorten the amount of preparation time, simplify handover and reduce operating risks.

FFHC provides multiple channels for employee communications and whistle blowing. A positive interactive relationship is maintained and whistle blowers are protected against improper treatment. Apart from personal meetings between managers and employees, the employee mailbox and complaints hotline, video conferencing, the internal website, the bi-weekly publication and monthly publication all enable employees to keep track of company developments. The employee communication and whistle blower channels at each company are as follow:

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The Audit Division sets up whistle blower hotline, fax and e-mail in accordance with the Guidelines for Handling of Whistleblower Casesand processes received complaints.

(1) Regular proposals and themed competitions are used to encourage employee to make suggestions on business improvements. In 2015 a total of 142 employee recommendations were proposed on improvements to quality of service, operations, system performance and existing operations. All were passed to the relevant units for study and implementation, with 57 being ultimately adopted. (2) Whistle blower hotline, fax and dedicated e-mail set up. All complaints are handled in strict confidence. All whistle blower channels are currently operating normally.(3) Established the "Employee Care Hotline." In 2015 a total of 10 requests that needed assistance were received. These were mostly work-related and once a call was received, a written record is compiled Management personnel was then asked to communicate with the applicant. All 10 cases were successfully resolved.(4) Set up internal online forum and employee feedback channels through the HR system. These covered business recommendations, sharing of club activities, insights from work, licensing experience, and customer feedback. Employees can use these channels to submit business recommendations or personal opinions. These are processed by a dedicated contact window in order quickly respond to employee suggestions and refine business procedures.

A "President's Mailbox" was set up on the internal website encouraging employees to make suggestions.

(1) Set up the "Ideas Mailbox" with employees encouraged to submit their advice.(2) Included "Employee Suggestions" in employees' annual performance evaluation to encourage communication.

(1) Established "Employer-Employee Meeting", "Regulations for Establishing Measures of Prevention, Correction, Complaint and Punishment of Workplace Sexual Harassment", "Employee Suggestion Box" and "Whistle Blower Hotline" to help employees deal with problems.(2) Organized employee commitment survey, office environment (hardware facilities) and quality of service (software services) survey, and listened to employees' opinions on the work environment.(3) Set up a variety of public forums on topics such as "CEO Weekly Report", "Good Articles", "Environmental Protection", "Arts & Culture", and "Club" on the internal website to promote communication and sharing.

Suggestions from employees in each department are tabled for discussion and communication during monthly meetings.

First Financial Holding

First Bank

First Securities

First SecuritiesInvestment Trust

First-Aviva

First Financial Assets Management

Company name Communication channels

102

5-2


2015H

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104

The "Treasured Life Retirement Trust" service

helped 61 senior citizens and 9 handicapped people

place their funds in trust with First Bank. The funds

are used exclusively for their lifestyle, medical and

retirement needs.

Hosted seminars on retirement and foster care

trusts at the Hiten Mental Hospital in Yilan, the Ren-

ai Branch of Taipei City Hospital and Ruen-Fu New

Life Apartments to educate social workers at the

hospitals and the residents of military dependent

villages about trusts.

Helped the victims and families of the Formosa

Fun Coast Water Park Dust Explosion in their most

difficult moment by reducing/waiving interest and

deferring payments on home and student loans.

Provided low-interest loans to victims of Typhoon

Soudelor to help with post-disaster reconstruction.

Senior care for the twilight years

Emergency relief for customers

Social Harmony

105

Hosted the Welcome the Dawn to Win First

Place event at Fulong, which has attracted more than

40,000 people over 7 successive years.

Hosted 2 health workshops as well as charity clinics

and health carnivals at Jibei Village in Penghu, and Namasia

Township in Kaohsiung. A charity clinic and health carnival

was also held in the Pursat Province of Cambodia.

Well-known creative artists were invited each

month to host art exhibitions at the Headquarters

building. Large evening concerts were also held

in northern, central and southern Taiwan with

customers, volunteers and minority groups invited to

join in listening to the musical feast.

In 2015 sponsorships amounting to NT$14,905,000

were provided for sports such as table tennis and tennis.

The national table tennis champion Heng-Wei Yang

became the World Junior Table Tennis No.1 and national

singles champion. Another two national champions Chun-

Yu Tsai and Chi-Chien Lai also won the singles and doubles

gold medals at the Malta Junior Table Tennis Open.

A total of 78 volunteer events were held in 2015.

These involved 3,006 volunteers and benefited 6,774

people, an increase of 16 sessions, 140 volunteers and 218

beneficiaries compared to 2014.

Encouraged employees to participate in green

volunteer events by helping disadvantaged groups

clean-up the environment, taking part in beach

and mountain clean-ups, helping new small organic

farmers who are short on manpower and money,

supporting wetland rehabilitation and ecological

education promotion initiatives.

A total of 44 environmental protection volunteer

events were held in 2015, attracting 1,103 volunteers and

benefiting 2,449 people.

Enhancing the group's image by injecting hope and vitality

into remote rural communities

Supporting the community through arts and culture, sports and musical events

Green volunteers for the land

1

106

First Service - The customer comes first 1-1 Innovative service

1-2 Customer satisfaction survey

1-3 Smooth channels for customer communication

1-4 Customer care events

1-5 Preventing financial fraud

1-6 Emergency relief for customers

1-1 Innovative service

In April 2015, account management was improved in April to allow customers to close their accounts online. For customers

making NTD transfers and remittances by fax, from November onwards those that agree to use telephone voice recordings

to confirm their faxed instructions with First Bank are no longer required to provide the original of their faxed instructions.

A new "Voucher Printing" function was added for terminal transactions in December. This eliminates the need for customers

to fill out a deposit slip when making deposits with a passbook account.

FFHC is continuing to innovate and improve our quality of service in response to intense market competition.The Digital

Finance Environment 3.0 project aims to build a smart, high-tech digital bank that offers a range of digital equipment.First

Bank is also the first bank in Taiwan to introduce the Virtual Teller Machine (VTM), which completely changes the traditional

over-the-counter service model.Our strength in physical channels can then be used to take advantage of the opportunities

offered by virtual channels. Such an integration of virtual and physical channels provides customers with a diversified digital

finance service.

1.1 Optimization and integration of business processes

1.2 Accelerated virtual-physical channel transformation and management of digital marketing experience

FFHC has embraced a strategy of "Integrated Transformation and e-Partnership" in response to the changing international

environment, the domestic push towards digital finance and the emergence of Fintech. "International, inter-department and

inter-business integration" and "accelerated virtual-physical channel transformation" have been defined as the two main

business approaches for converting "Change" in the external environment into innovative services and growth opportunities.

This will provide customers with an "all-channel" service experience and fulfill the strategy of "e-Partnership." We shall

therefore continue to uphold the business philosophy of "Customer Service Comes First" in service quality by making good

use of local resources, embracing localized management and taking advantage of digital transformation opportunities in

order to create value together with our customers.

The "Digital Banking Experience Area" was introduced in First Bank branches to expand

the range of digital and mobile transaction services, realize streamlined, digital and

paperless over-the-counter services, and launch a new digital finance environment.

The form auto-filling and no-form services provided by the digital writing table helps

customers save waiting time for over-the-counter services; iPads and high-tech

products are used to attract customers' attention in order to increase the proportion of

customers who use digital services and speed up the rate of digitization.

(1)

107

1-2 Customer satisfaction survey

Each group company's satisfaction survey

Our customers' rating and satisfaction with FFHC products and services is very important to us. We conduct customer

satisfaction surveys every year through telephone surveys, e-mail questionnaires, web pages, customer service or external

market survey firms. Improvements are then proposed based on customer opinions and suggestions from the surveys.

In 2015, First Bank's external "Customer Satisfaction Survey" used e-mail to collect customers' satisfaction ratings on the

business units they dealt with. The surveys covered overall service as well as personnel handling deposits, remittances,

financial planning, foreign currency and loan transactions. Respondents were asked to rate the staff on their attitude,

accuracy, processing time, professionalism and waiting time. First Securities used investment seminars and customers to

conduct written surveys. FSITC conducted telephone surveys to gage customer satisfaction. First-Aviva commissioned

market survey firms to conduct the annual satisfaction survey. All customer feedback wasforwarded to the relevant units in

order to study future improvements. Alternatively, education and training was strengthened to increase employee familiarity

with business processes and improve their efficiency. First Bank for example upgraded its computers and streamlined the

transaction process to allow customers to use the corporate website or "e-Action" mobile phone app to connect to the

"e-Writing Table." Over-the-counter transactions can then be sped up by filling out forms in advance or queuing online. To

avoid keeping customers waiting during the lunch break, a roster was set up to let employees go to lunch early.

Satisfaction survey items

First Bank(Operation Planning & Admin. Division)

First Bank(Credit Card Division)

First Securities First Securities Investment Trust

First-Aviva

Overall service, how correctly business was handled, professional performance, waiting times, etc.

Telephone etiquette, planning of marketing activities, problem resolution and attitude

Seminar setup, overall service and electronic trading system

Investment IT services

Sales personnel's attitude and familiarity with products

The "Digital Banking Service Area" provides a wide variety of digital equipment and functions. We introduced the first

VTM which is based on the self-service kiosk. Remote customer service representatives assist customers with filling out

forms, make a reservation to open an account, or apply for credit cards and personal loans. It can also provide the latest

financial products. The integration of transactions, services and sales offer time-poor modern workers with quick and

convenient financial services. First Bank plans to introduce even more innovative digital equipment and reception robots

in the future to enhance the value of physical branches through a digital finance environment that offers innovative

products and services.

(2)

2015 Performance

89.92% 83.3% 85% 94% 81%


Social Harm

ony2015

1-11-2

108

Improvement plans for areas requiring improvement


First Bank(Credit Card Division)

First Securities

First Securities Investment Trust

First-Aviva

1. Employees trained to pick up the phone within three rings and on the proper introduction when

picking up calls.

2. Upgraded computers and streamlined the transaction process to allow customers to use the

corporate website or "e-Action" mobile phone app to connect to the "e-Writing Table." Over-the-

counter transactions can then be sped up by filling out forms in advance or queuing online. These

provide customers with a whole new experience.

3. Arranged for employees to go to lunch early to avoid keeping customers waiting during lunch.

Backup servers added to improve the stability of the trading system in response to the growing

number of mobile system users. Sub-brokerage trading functions for key international share

markets such as the U.S., Shanghai and Hong Kong were also added to the First Securities' online,

PC and mobile trading systems.

1. Provided immediate analysis of important events in the financial market by e-mail.

2. Provided monthly updates on investment trends by e-mail.

3. Hosted quarterly seminars to provide an in-depth look at the latest investment trends.

1. Drew up policy-holder reward programs and booked cinemas for reward events.

2. Send SMS updates to customers at key points in business processes for their trust and peace of

mind.

3. Assignment of dedicated service representatives to the claims process.

First Bank has partnered with the Street x Taipei Food app to add 50% off discounts to nearly 1,000

restaurants. First Bank card-holders who upgrade to Street x Taipei Food VIPs by swiping their

cards also receive 5 vouchers, creating a digital lifestyle O2O and sharing economy platform.

1-3 Smooth channels for customer communication

Most satisfactory areas

Areas requiring improvement


First Bank

(Credit Card

Division)

First Securities First Securities

Investment Trust

First-Aviva

Correct handling by loan personnel

1.Call pick-up time2.Call introduction

Ease of preparing documentation for card applications

Number of restaurants offering promotions

Attitude of service staff and seminar content

Satisfaction with the electronic trading system

Satisfaction with investment/financial planning information and events

Investment information channels and frequency should be increased

Sales personnel's attitude

Contact with policy-holders

To actively understand and respond to customer requirements in a timely manner as well as maintain sound customer

relations, FFHC does not just help customers resolve their problems through its local offices and staff during business

hours. The "Stakeholder Communications" section of the FFHC website provides the online customer support, 0800 toll-

free customer service hotline, business inquiry hotline and complaints mailbox for FFHC and its subsidiaries as well. FFHC

subsidiary First Bank operates a 24-hour customer service hotline for listening to customers' opinions and suggestions,

account inquiries, updating customer details, banking business inquiries and problem reports. The hotline provides

customers with real-time service on demand. Business dispute handling procedures have also been put into place. Once a

Customer calls the company

Customer Service CenterCustomer service personnel

handle the customer’s issue until the issue is closed

Details of customer feedback are compiled monthly and reported to managers

Customer service manager takes over the case

until the issue is closed

Process complete

Process complete

NO

NO

The customer feedback ticket is transferred to the

responsible department, which closes the issue within three

working days

109

First Bank customer complaint handling process

customer complaint has been received the administrative and related units work actively together towards its resolution.

Current progress is also recorded for tracking purposes; each business unit has dedicated personnel assigned to handling

customer complaints. They are responsible for assuring the customer and processing reports within the given deadline.

The statistics showed that in 2015 FFHC subsidiaries received 517 customer complaints, down 707 on 2014. The reduction

in customer complaints was mainly due to the Credit Card Division's push to deliver proactive, high-quality service. FFHC

also requires all customer feedback to be responded to within three working days. Internal processes and employee training

were also strengthened based on some of the customer feedback.

1-4 Customer care events

There has been increasing public interest in issues such as food safety, health, stress reduction and financial planning in

recent times. Businesses must fulfill their social responsibility by acting as an agent for information delivery. In 2015, FFHC

subsidiaries conducted a series of financial planning seminars in urban and rural areas as part of our customer relations

management. Seminars with seasonal themes were also held so that customers and employees could be productive

workers and also relax and lead a healthy lifestyle. We also reviewed customer assets and provided timely suggestions on

adjustments. Through solid, practical and attentive service, we strove to protect our customers' assets and create a win-win

outcome for both sides. At the same time, we held seminars in industrial parks around Taiwan to provide small and medium

enterprises with the latest finance information, investment and financial advice, as well as promote the Equator Principles

and green energy loans. Up to 980 seminars (including 8 video conferences) of all types were held during 2015. More than

29,554 people attended these events to learn first-hand about financial, investment and lifestyle information.

For customers who are willing to repay their loans but whose short-term income is uncertain, First Bank not only cooperates

with government policy to reduce repayment pressure but also various negotiation methods to help them through this

difficult time. In 2015, First Bank approved 689 accounts totaling NT$ 54.06 million for negotiation to help the customer

repay their debt as soon as possible.


Social Harm

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1-21-31-4

Number of

participating

customers

110

In 2015, FFHC organized customer care sessions that were attended by up to people. A summary is provided below:

980 29,554

VIP Financial Planning Country Road Show, Customer Road Show

Financial Planning Clinic Seminar

Financial PlanningWorkshop for Customers

Mother's Day/Father's Day Workshop

Corporate Gold Workshop

Total of

Total of

Total of

Total of

sessions

between

sessions

between

sessions

between

sessions

between

Total of sessions for

Total of sessions for

Taipei, Taoyuan, Hsinchu,

Taichung, Chiayi, Tainan and

Kaohsiung

Held in northern,

central and

southern Taiwan.

First Bank

business units

Taipei,

Taichung,

Kaohsiung

Minsyong Industrial Park, Tai

Yuen Hi-Tech Industrial Park,

Dafa Industrial Park, Liouying

Technology Industrial Park, Neihu

Technology Park, Anping Industrial

Park, Gangshan Benzhou

Industrial Park, Nangang Industrial

Park, Taiyi Industrial Park

Promote financial literary and helping customers with their

financial planning through introducing financial products,

explanation of key topics and promotional offers.

One-on-one review of customers' current asset mix to provide investment advice

and helping them adjust their investment portfolio when appropriate.

Educate customers on financial planning and

financial information. Improve financial literacy

among ordinary people.

Combine social welfare with performances by

charities to encourage customers to participate and

contribute to social welfare.

Free traveling financial workshops for SMEs were held at each industrial

park providing the latest financial information and investment advice

such as analysis of overall economic trends, introduction of financial

products, explanation of key topics, and promotional offers.

2,101

1,073

20,886 826

1,100

2015/1/1~12/31

2015/1/1~12/31

2015/1/1~12/31

2015/1/1~12/31

Mother's Day

Father's Day

18

66

850

10

3

3

Number of

participating

customers

Number of

participating

customers

Number of

participating

customers

Number of

participating

customers

Investment and Financial Planning Workshop

Expert Wealth ManagementClass Online

Taipei, Hsinchu,

Taichung,

Kaohsiung

First Securities

Investment Trust

website

First Securities Investment Trust invited financial

experts and art celebrities to share their financial

planning and lifestyle information in order to

enhance the financial literacy and knowledge of

customers.

Financial experts invited to provide the latest

financial information such as financial products,

explanation of key topics, and promotional offers.

1,890 1,028

2015/1/1~12/31

2015/1/1~12/31

The seminars attracted

views

111

Financial Literary Seminar for Rural and Regional Communities

Total of

Total of

Total of

sessions

between

sessions

between

sessions

between

Taipei, New Taipei

C i t y , Ta o y u a n ,

Taichung, Miaoli,

and Penghu

First Securities hosted financial literacy awareness

events for rural and local communities. Speakers and

staff were provided to promote financial literacy and

combat fraud.

650

2015/1/1~12/31

13

08

09

Number of

participating

customers

Number of

participating

customers

1-5 Preventing financial fraud

Fraud is a constant problem. To protect customer assets, First Bank has issued

the "Over-the-Counter Checklist" and "Fraud Prevention and Large Withdrawal

Precautions for First Bank Business Units." For suspicious situations or whether

the customer shows signs of being defrauded, First Bank contacts the local

police when appropriate to investigate and provide cash escorts. The partnership

with the police helps to protect customers against fraud. Routine education and

training is also used to raise awareness on fraud prevention. In 2015 for example, a

retired bank employee received a call from fraudsters claiming that due to alleged

involvement in drug dealings, he must now transfer his assets to an account at the

An-nan branch of First Bank for monitoring. The retired bank employee was taken

in and transferred NT$4 million as directed. The fraudsters then sent someone to

withdraw the money but bank employee Jiang suspected something was wrong.

In addition to keeping the person making the withdrawal on hold, she also notified

her supervisor, the local police, and helped the police arrest the suspect. The

NT$4 million was also recovered in time. The National Police Agency and the 3rd

Precinct of Tainan City Police Department both sent letters of appreciation to

the First Bank for doing its duty and preventing the fraud case. In 2015 a total of

11 fraud attempts were successfully prevented and NT$20.18 million in fraud

proceeds blocked.


Social Harm

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1-4 1-5

2

First Care - Love for Taiwan

112

FFHC has been organizing the volunteer service corps for 5 years.In keeping with the "Service Comes First" spirit and

leveraging the advantage offered by more than 200 sites throughout Taiwan,FFHC has embraced the concept of "local care"

to deliver warmth and compassion to every township.Apart from actively participating in the financial awareness initiatives

of government agencies andcharity events, FFHC has also drawn upon the resources of the Group's subsidiaries and the

First Bank Educational Foundationto expand the scope of services so that more people can appreciate how "FFHC is there

for you." In 2015 the Group organized a total of 205 charity events.The event funding and donations amounted to NT$56.65

million. For 2016, we hope that our outreach program following the three key themes of"First Care", "First Dream" and "First

Culture" will fill society with the power of loveand build bridges with the general public.

2013-2015 Volunteer participation and number of beneficiaries

2015 FFHC CHARITY EVENTS AND DONATIONS

27%

46%

27%

First Culture

First Care

First Dream

1-6 Emergency relief for customers

First Bank helped the victims and families of the Formosa Fun Coast Water Park Dust Explosion in their most difficult

moment through reduced/waived interest and deferred payments on home and study loans. Victims of Typhoon Soudelor

also received low-interest loans to help them with post-disaster reconstruction. At the same time, First-Aviva also provided

immediate compensation and discounts on premiums or loan interest when members of the general public experience a

serious incident. Emergency pay-outs were also available on a case-by-case basis. An example of this was the 2015 light

aircraft crash at Dapeng Bay in Pingtung County. First-Aviva treated the incident as a "serious special case" and paid out the

insurance policy right away to look after the policy-holder's family. The beneficiaries also received assistance with completing

the subsequent claims process.

2-1 Volunteer service

2-2 Protecting minorities

2-3 Promotion of child safety education

2-4 Senior care

2-5 Friendly land

2-6 Charity donations

2-7 Partnership with small farmers

2013 4,0731,701

2014 6,5562,866

2015 6,7743,006

Participants Beneficiaries

關懷活動

113

2-1 Volunteer service

Donations of subsidies and funding

Beach clean-up

Group activities, fun

challenges, drawing,

storytelling competition,

table tennis training,

reading companions

Donation of materials

(refurbished computers,

electrical appliances,

domestic goods, nutrition

supplements, stationery,

sports equipment, music

teaching materials)

Campus cleaning

and re-painting

Making of cakes,

pineapple cakes

and handicrafts

Financial literacy

awareness

School vegetable gardens,

farming, and harvesting of

fruits and vegetables

FFHC has offices throughout all major cities and townships throughout Taiwan after more than a century of development.

We are keenly aware of the tremendous gulf faced by minorities and remote rural areas caused by the urban-rural divide.We

therefore sought to invest our resources in rural areas suffering from aging populations, labor shortages particularly during

the harvest season. The Volunteer Service Corps was therefore formed in 2011 and Taiwan was divided into six regions from

the north to the south - North 1, North 2, Taoyuan-Hsinchu-Miaoli, Taichung-Changhua-Nantou, Yunlin-Chiayi-Tainan and

Kaohsiung-Pingtung.By recruiting volunteers for labor services, environmental clean-ups, companionship for sick children

and senior citizens, beach clean-ups, and farming, we offer employees the opportunity to help minority groups, rural areas,

children with rare diseases, and senior citizens. This in turns energizes society through a positive feedback cycle of love.

Apart from caring for our fellow men, FFHC also actively promotes friendly environments through local communities and

well-known destinations in keeping with the ideals of environmental sustainability. These included Taoyuan County's Yong-

an Fishing Harbor and Chungli Fruit & Vegetable Wholesale Market and the Yanping Historic Street in Siluo, Yunlin County.

Apart from doing our part for the environment, we also encourage tourists and local residents to take part in highlighting the

cultural beauty of Taiwan. In 2015, the First Volunteer Service Corps visited 17 counties and cities throughout Taiwan. The

number of volunteer events grew from the 62 sessions in 2014 to 78 sessions in 2015. Volunteer participation increased

from 2,866 to 3,006 people, the number of beneficiaries grew from 6,556 to 6,774 during the year, and the total number of

service hours reached 12,024 hours. (Between 2011 and 2015 volunteers were dispatched a total of 8,729 times, benefiting

20,552 people and clocking up a total of 34,916 hours of service.) Our charity events in 2015 included:

Charity Events


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114

First Volunteer Service Hours in Recent Years

hoursCumulative total

Cumulative total

Cumulative total

people

people

34,916

8,729

20,552

Hours

Participants

Beneficiaries

2011 2,140

2012 2,484

2013 6,804

2014 11,460

2015 12,024

2011 535

2012 621

2013 1,701

2014 2,866

2015 3,006

2011 1,148

2012 2,001

2013 4,073

2014 6,556

2015 6,774

115

A total of

A total of

A total of

•Gan Ling Charity Foundation (GLSF)

• Yanping Historic Street, Siluo• DachiaChengchi Charity Association

• Holy Wisdom Training Center for Special Needs

• Chiayi County Zhongpu Private Institutional Care Center• Tsz-Ai Mental Development Center• TFCF North District office• Nantou Education and Nursing Institution

•Community Outreach in Zhongxing and Aofeng, Qingshui District

• Northern Region Senior

Citizens' Home• St. Anne's Home

• Beacon of Faith Home for Youth• Down Syndrome Foundation R.O.C.

• Taiwan Fund for Children and Families• Going Home for Premature Babies

• Hondao Senior Citizen's Welfare Foundation• Yu-Cheng Social Welfare Foundation - Car Wash Center• Yu-Cheng Social Welfare Foundation

- Love Education•Datong Children's Home

•Water Fun for Premature Babies •Institute for the Blind of Taiwan

•Gongbei Temple of New Taipei City

•Poor Orphans Home •Kind Lead School Cultural and

Education Association •Yong-an Children's Home

•Ji-Sing Senior Citizens Foundation •Jinxing Community, Shanlin District

•IPHCCO •Private Buddhist Ching Jou Orphanage •SandimenSaiJia Elementary School •Huei Ming School and Home for Blind Children •Co-Life Home

•Ching Shan Children's Home •Jin Tan Public School, Linyuan District

•Hualien County Family Association•Kids Alive International

2612

Northern Taiwan Taoyuan-Hsinchu

-Miaoli region

•TFCF Yingge Office •Chung Yi Children's Home

•Holy World Children's Home•Harmony Home Association, Taiwan

•Tzu Tai Sheltered Workshop•Care Cardiac Children's Association

• Veterans Service Department• Street Fun for Premature Babies• Mustard Seed Home

• Linkou Organic Farm• Wanli Wetland

• Xiang-Ri Farm • Sporting Fun for Premature Babies

•TFCF Changhua•Shuang Long Elementary

School•Maria Wufeng Caring Home

•Faith-Hope-Love Center for Children and Adults with Disabilities•Enhuei Children and Juvenile

Center•Shuang Long Elementary

School, Nantou

11

14

Yunlin-Chiayi-Tainan Region

Kaohsiung-Pingtung Region

•House of Hope •Rong-Guang Social Welfare

Institution •Kai-Yuan Nursing Home

•Tzu-Hui Children's Home •Chao Hsing Social Welfare Foundation

•Ren-Ai Home Affiliated Children's Home •Changtai Education and Nursing Institute, Sinshih • Show Life Children's Home

• Cao Huang Temple • Shanmei Elementary School, Alishan

• Taingon Children's Home

charity support events were held

in 2015


in 2015


in 2015

•Chungli Fruit & Vegetable Wholesale Market•Catholic Hua-Kuang Center for the Development of the Disabled•Yong-an Fishing Harbor beach clean-up•Reindeer Children Home•TFCF Miaoli•Tinfun Home for Individuals with Development Disabilities •SOS Children's Villages

Taiwan

•Green Light Classroom•Holy Family for Special Education•Chiahwei Home for Individuals with Development Disabilities•Renyou Sanatorium•Taoyuan Kind Garden

A total of

A total of

15

Taichung-Changhua-Nantou Region


in 2015


in 2015


Social Harm

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2-1

116

2-2 Protecting minorities

To help economically disadvantaged or bereaved children focus on their studiesand to provide them with love and

companionship,the FFHC Volunteer Service Corps used our offices around Taiwan to venture deep into the 368 townships

in 17 counties and cities in search of schools and children's homes to donate mentoring subsidies, teaching equipment and

promote financial literacy in order to expand the learning horizons of disadvantaged children; Minority groups also received

donations of used computers and New Year food subsidies.Volunteers accompanied the meal delivery services or joined in

the performance of traditional art and cultural activities.In 2015 FFHC volunteers visited a total of 78 children's homes in

the spirit of local engagementand love in order to give back to society.

First Securities has continued to work with the

Taiwan Premature Baby support Association on

hydrotherapy, massages, singing and physical

exercises for premature babies to help with their

health and future.

To encourage minorities and patients to stay positive and optimistic, First Bank Educational Foundation regularly hosts the

"Caring & Compassion Series" of small concerts at the National Taiwan University Hospital at 2-month intervals to provide

minority and handicapped groups with a performing venue. Group companies also participate to communicate positive

energy from society to the general public and patients. More than 200 people attend each of these heart-warming sessions.

2.1Children in rural regions

2.2 Premature babies

2.3 Charity concert

FFHC Volunteer Service Corps

The spirit of local engagementand

Love

Back to society78

Children's homes

117

Series 3 Series 4

2015.6.17 2015.8.6

Chunhua and

Menglu Duet

New Taipei City

Autism Service

Association/Kanner

Support Group

"Drumming for Dad"

Series 1

Series 5

Series 2

Series 6

2015.3.3

2015.9.24

2015.4.2

2015.12.16

Visually impaired singer

Yi-Chen Chen,

Ting-Hao Liao and

Yi-Chun Wei

Special Education Class

from Kuang-Ren Junior

High School

Lin-Feng Chang,

Chien-Yu Chou

"Welcoming the New Year with Joyful Singing and Music"

"Mid-Autumn Festival with Disabled Youths"

"Children's Percussion and Dancing for Self-Confidence"

"Celebrating the Dragonboat Festival with Chunhua and Menglu"

"Christmas Well-Wishes through Beautiful Voices"

FSITC continued to cooperate with the Sunshine

Foundation to promote face equality by inviting more than

ten companies to take part in a charity blood drive. The

blood drive is used to promote facial equality and raise

public awareness. Nearly a thousand bags of blood filled

with enthusiasm have been donated over the last three

years.

2.4 Blood drive

Inviting more than

ten companies

Three

years

Nearly a thousand bags of blood


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2-2

118

2-3 Promotion of child safety education

In 2015, the three schools (Ankeng Elementary School, Erchong Elementary School and

Zhongzheng Elementary School) participating in the disadvantaged student adoption

program supported by the First Bank and First Bank Cultural and Education Foundation

as well as Jin Chuan Child Safety Foundation which has a longstanding partnership

with First-Aviva joined forces to promote child safety awareness and enhance child

safety knowledge among parents and children by hosting three children's safety camps.

In addition to teaching children how to protect their own safety, Prof. Lan Hong was

invited to provide a unique analysis on education from a neural science perspective,

while Prof. Kuang-Tsai Hao taught about the magic of illustrated brooks. For the parents

in the audience this was a very educational experience while the children learned about

safety through plays and challenge activities. Around 900 parents and children took

part in the events. At the same time, 44,000 children's safety play books were delivered

to each business unit and given out to over-the-counter customers to help promote

children's safety.

To help children reduce their fear of danger through color

perception, First-Aviva has held a children's safety drawing

competition every year since 2011 and attracted more than

2,000 entries. In 2015 the Internet was used to allow more

people to appreciate the prize-winning artworks by children.

A collection of the winning paintings was also produced and

distributed to customers, and was ultimately viewed and shared

by around 13,000 people.

3.1 Child safety family camp

3.2 Online painting exhibition

First Bank cooperated with the Financial Supervisory Commission by hosting

"School and Community Financial Education" events at 40 elementary and junior

high schools in Taipei, New Taipei, Yilan, Taoyuan, Miaoli, Taichung, Nantou,

Chiayi, Tainan, Kaohsiung and Pingtung as well as offshore islands like Lianjiang

and Penghu. The events are aimed at cultivating financial literacy from an early

age. Around 4,599 people in total took part in the sessions; to promote financial

knowledge and cultivate future financiers, First Securities partnered with

universities such as National Taiwan University, Ming Chuan University and

National Tsing Hua University to host financial planning seminars on campus and

search for future financiers. The seminars attracted more than 200 elite students.

To maximize the use of resources and fulfill our CSR through cross-industry partnerships, First Bank partnered with its

customer Cheng Loong Corp., to turn recycled cardboard into book shelves, tables and chairs. A book donation drive was also

launched to provide the An Zhao Elementary School in Kaohsiung City's Yanchao District and the Chi Ming Elementary School

in Taichung with their own "Paper Library." An Zhao Elementary School in particular was the first paper library in southern

Taiwan. The tables, chairs and shelves made from paper are not just strong and robust. They also play a role in environmental

education on importance of recycling. The partnership between companies allowed each to apply their core competencies. This

not only enhanced the reading environment for remote elementary schools but also let the students experience and understand

the importance of environmental education. More importantly, it serves to inspire their interest in learning and help them

change the future.

3.3 Financiers on campus

3.4 Partnering with corporate customers to build a paper library

TeachingFinancial

knowledge

119

2-4 Senior careTaiwan is now an aging society and senior care is now

attracting greater public interest. The FFHC Group is

promoting retirement trusts to be used exclusively for the

living, medical and retirement needs of senior citizens so

they can live out their twilight years in peace. In addition

to recruiting volunteers to visit seniors on weekends,

the group has also partnered with well-known medical

institutions in Taiwan to offer free clinics in remote rural

areas and in Cambodia to provide disadvantaged seniors

with better medical care. In December 2015, indigenous

children were invited to visit Nantou's Concern with Love

organization to celebrate Christmas with disadvantaged

seniors living alone.

Beneficiaries

people

peoplepeople

people people

people

Beneficiary families

3,071

125

200

2,500

60

150

36

1,000

Northern Region Senior Citizens'

Home: Providing companionship to

senior citizens through environment

clean-ups and magic performances.

Health comes first for everyone:

Charity clinic at Jibei in Penghu in

conjunction with E-Da Hospital

First overseas charity clinic brings

smiles to Cambodia: Cross-industry

charity

Christmas with Love: Love in a shoe box

with companionship from FFHC and

Shuang Long

LOHAS with First Bank: Charity clinic in Taoyuan Township

in conjunction with Kaohsiung Medical University

Ji-Sing Senior Citizens Foundation: Group

recreation activities and senior care.


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120

The idea of having children to support you in your old age is now gradually becoming obsolete. Senior citizens should plan

in advance and save for their future. The "Treasured Life Retirement Trust" of First Bank allows funds to be entrusted to

trustees and used exclusively for seniors' own lifestyle, medical and retirement needs so they can live out their twilight years

in peace.

First Bank actively promoted the trust business in 2015 by hosting seminars on retirement and foster care trusts at the

Hiten Mental Hospital in Yilan, the Ren-ai Branch of Taipei City Hospital and Ruen-Fu New Life Apartments to educate social

workers at the hospitals and the residents of military dependent villages about trusts. Q&A and consultations were also

conducted after each session.

In keeping with the group strategy and in response to the trend of an aging population, in 2015 First-Aviva also launched the

Long-Term Care Lifelong Insurance. It also continued to work with the bank and government policy to develop retirement

trusts. This will help to resolve an emerging social issue and fulfill our CSR in conjunction with our core competencies.

There has long been a disparity in the distribution of urban and rural medical resources. In 2011 FFHC began partnering

with hospitals to host charity clinics in rural areas to provide medical care and educate people on health. In 2015, FFHC

partnered with one of its customers, the Taieasy Group, in mid-July to send a 50-person charity clinic team carrying more

than 1.2 tons of medicine and supplies to Cambodia. With the help of local and foreign volunteers, the team ventured deep

into the remote rural areas of the Pursat Province to provide local residents with clinical, surgical, dental and physiotherapy

treatments. This was also the first time that the concept of local relations management has been expended to an overseas

market since the founding of the volunteer service corps. In October we partnered with the Kaohsiung Medical University

and E-Da Hospital to host charity clinics in Lavulang in Kaohsiung's Namasia Township and Jibei Village in Penghu. Residents

were offered free blood and urine testing, Chinese medicine clinics, ECG examinations, preventive health care and health

education consultation services. The initiative is designed to raise public awareness on rural medical resources.

Due to the aging population in Taiwan, the First Bank Volunteer Service Corps visited the Northern Region Senior Citizens'

Home and the Ji-Sing Senior Citizens Foundation in Kaohsiung to provide companionship for seniors. First Bank employees

prepared magic performances and group recreation activities to interact more closely with the elders and fulfill our social

engagement policy.

4.1 Retirement trust

4.3 Rural charity clinics for senior care

4.2 Companionship for senior citizens

Blood and urine

testing

Chinese medicine

clinics

ECG examinations health education

consultation services

Preventive

health care

121

Shuang Long Elementary School is a remote school in Nantou

County's Xinyi Township.It is also one of the Bunun Tribe's specialty

schools. On June 2, 2013, an earthquake in Nantou badly damaged

the school buildings.Funding shortages however meant students

were short of classrooms.Upgrading the learning environment

was therefore a matter of great urgency.FFHC began providing

systematic aid to Shuang Long Elementary School in 2015.Apart from

funding improvements to teaching equipment, FFHC also provided

the school choir with a stage for their performances.In the lead-up to

Christmas, students from the school were invited to deliver singing

performances as volunteers.They also had fun with DIY cake-making

and accompanying seniors living alone during the holiday season. The

initiative enriched the souls of both sides.

4.4 Christmas blessings for elders living alone

2-5 Friendly land

FFHC encourages employees to engage in environmental

volunteering. There are three categories with the first

being helping disadvantaged groups with cleaning up the

environment,painting the community and cultivating the

concepts of recycling, environmental protection, energy

conservation and carbon reduction through the clean-up

process; the second is inviting employees and the general

publicto take part in beach and mountain clean-ups in order

to protect the beaches and wilderness together; The third

is working with schools and organizations to plant trees on

campus and greening the environment.The general public

is invited through our employees at more than 200 sites to

join in volunteering for the environment.

"First Fresh" helps new small organic farmers short on

manpower and money."Water and Grass Paradise" focuses

on wetland rehabilitation and ecological education."First

Fresh" attracted more than 200 participants since it

was launched in November, 2015.It promotes organic

environmental educationand helped sell more than 500

catties of organic vegetables. Total of 44 environmental

volunteer events were held in 2015, attracting 1,103

volunteers and benefiting 2,449 people.Employee

participation helped realize Earth-friendly practices.

5.1 Green volunteers

44 1,103 2,449Environmentalvolunteer events PeopleVolunteers

Benefiting


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2-42-5

Total of

122

The FSITC "Deliver Love into the Country" eventEncouraged employees

to donate stationery, clothing, toys, books and accessories suitable for

elementary students.FFHC also donated 10 sets of refurbished computers

as well.The children of the Ark Classroom in Taitung County's Daren and

Dawu Townships greatly appreciated the expression of warmth and love

from society.

5.2 Deliver love into the country

A flea market was held by First-Aviva at the Headquarters building.Building tenants were encouraged to join with the

Jin Chuan Child Safety Foundation in organizing the event.The overwhelming response from employees and other

businessesraised NT$435,000 in donations for the Jin Chuan Child Safety Foundation. This will hopefully provide children

with a safe environment for healthy growth.The flea market also gives items that are not needed for nowa new lease of life.

5.3 Flea market

In the spring of 2014, we (Xingxing, Wendong and Douzi)

formed a joint venture to found the CUG Organic Farm in

Linkou, New Taipei City. Each of us contributed our own

expertise (gardening, architecture & landscaping) to "grow

and sell vegetables" in a way that integrates everything

from production to sales.

Farming however was not as easy as we thought. Instead, it

was filled surprises, shock and sheer terror. After enduring

weed and pest invasions, missing out on the best time for

applying fertilizers and harvesting due to inexperience,

and customer complaints due to poor product quality,

we began to taste the fruits of success. The eventful year

was a valuable experience and we gradually expanded

into farmer's markets, channels, hot pot restaurants

and markets. There were some problems that remained

unsolved. The shortage of agricultural workers was

particularly acute.

In the summer of 2015, representatives from First Bank's

PR Office came to visit us then proposed the "First Fresh"

program to provide agricultural support, assistance with

packaging, and regular purchases of vegetables to boost

production and sales. We immediately asked why they

sought us out despite our poor ratings on hardware

facilities. We felt that First Bank should work with more

developed farms instead. The PR Office however told

us that this was their way of providing farmers with

practical assistance. This was an offer we were more

than happy to accept because the shortage of labor was

a serious problem. After several sessions, what we saw

was mutual assistance, division of labor and efficiency.

All of the work for the day were often completely well

ahead of time. It showed everyone that the First Bank

employees were in it for real and nobody opted out

even if it was 30 or 40 degrees on the day. During the

events, we also noticed that First Bank employees had

no problems with and taking home really ugly sub-

standard vegetables with them.

If CUG is like a cabbage, we are now in the "root

growing" phase. The assistance from First Bank is like

applying fertilizer so we can grow even stronger. Apart

from the helping with the farm work, the exchange of

ideas during the events also expanded our horizons.

In conclusion, we hope that the labor exchange can

continue to thrive in the future and we thank First Bank

for being here for us.

Helping Youths Return Home – CUG Organic Farm

123

2-6 Charity donations

2-7 Partnership with small farmers

The dust explosion at the Formosa Fun Coast on July 14,

2015, has led to the deaths of 12 people and injured 487

people to date. Most of the victims were young people who

suffered burns to their face and body. Recovering from

burns is a very long and difficult road. FFHC immediately

donated NT$10 million towards psychological counseling

services for the dust explosion survivors in order to help

them emerge from the tragedy. FFHC believes that the

finance industry should fulfill its CSR by cultivating future

pillars of society. So in addition to encouraging the young

burn victims to get back on their feet and have the courage

to face the sunlight, we also provided support for the

National Cheng Kung University's student assistance

program and the Financial Service Industry Education

Foundation. This will help students from poor families

who wish to further their education gain equal access to

education and change their lives.

In November 2015 Taiwan experience a cabbage glut

that saddled farmers with rock-bottom prices. FFHC

immediately placed orders directly with farmers through

the "Fruits & Vegetables Marketing Cooperatives" to buy

50 tons (approximately 22,500 heads) of cabbages. This

helped cabbage farmers through the crisis through direct

action. Apart from doing our part to alleviate the glut, it

also provided a way to thank our customers and reward

our employees. Other parts of society soon followed the

example we set.

Charity donation items Amount

2,000,000

10,000,000

2,500,000

Donation to the NCKU Student Assistance Program

Formosa Fun Coast Dust Explosion

Financial Service Industry Education Foundation

Total 14,500,000

Insights from the Wanli Wetland Event

I kept wondering before departure what wetland volunteers were

supposed to do. What could they do anyway?

Ever since that day, I've felt nothing but admiration for the

volunteers and environmental groups who work quietly behind

the scenes to protect Mother Nature. I also learned how fragile

the wetland ecology is, and how destruction is so much easier

than rehabilitation. The Society of Wilderness took us early in the

morning to the Wanli Wetland which has no street number or signs.

The morning focused on introductions while the afternoon was

spent on weeding, trail maintenance, and explaining the ecological

environment. "Participation" itself is a form of "Education."

The "Feedback and Sharing" after the event showed me that I wasn't

the only one to feel the same way. There were also many other

colleagues who hoped that this kind of environmental and ecological

education can be passed on because they learned through direct

participation the importance of protecting the land.

Xiaozhen, bank employee


Social Harm

ony2015

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124

3-1 Table tennis training

3-2 First Financial Holding Table Tennis Tournament

FFHC has been supporting and sponsoring sporting activities for more than 20 years.

Recognizing the need for long-term planning and systematic training in sports, we

set up table tennis teams, hosted national competitions and sponsored athletes to

systematically, progressively and continuously strengthen the sport at the grassroots

level and cultivate future stars. In addition, we also hosted national table tennis and

large-scale tennis competitions every year with the public invited to participate. This

encouraged the public to exercise. To support local sports stars on the international

field, we provided sponsorships that allowed them concentrate on the preparations

and make their country proud. In 2015 FFHC continued to cooperate with Juguang

Elementary School, Haishan Junior High School, Fucheng Junior High School and

the National Taiwan Sport University. Yilan Elementary School, Shiu De Elementary

School and Nancheng Elementary School also signed with the program as well. A total

of NT$12 million was spent on training for athletes at the grassroots level.

To support domestic sporting developments and cultivate competitive athletes at the national level, First Bank has long

provided grassroots support for table tennis targeted at future national representatives. To provide the players with better

training environments and resources, FFHC not only provides national-level instructors and sponsorships for training costs

but also arranges for players to training overseas with other world-class athletes. This is intended to hone the playing skills of

athletes and cultivate more elite athletes of tomorrow so they can do their country proud. The First Bank Men's Table Tennis

Team currently has 12 regular members and 13 reserve players. Four of the regular members have now been chosen by the

national team and two are on the national juniors team. In 2015 they competed in the Philippines, Poland, Thailand, Czech

Republic and China where they always came in the top 3.

FFHC has been hosting national table tennis tournaments

since 2009, In 2015, the 6th national tournament

attracted 110 teams including more than 1300 players,

coaches and parents. This was a new record in both team

numbers and participants! We hope this will identify

talented table tennis players and help cultivate Taiwan's

next King of Table Tennis.

110 teams 1300 players

3First Dream - Pride of Taiwan

3-1 Table tennis training

3-2 First Financial Holding Table Tennis Tournament

3-3 Tennis tournament

3-4 Supporting young entrepreneurs and SME development

3-5 University student assistance program

125

Chi-Chien Lai - Table of Dreams

During the summer before starting second grade, I

attended the table tennis camp at Dayou Elementary

School in Taoyuan and discovered how fun it was.

This was the start of my road to becoming a table

tennis athlete. In 4th grade I became the champion at

numerous competitions large and small throughout

Taiwan. However, my father who had competed in

cycling at the Asia Games, was against me becoming

an athlete. It was not until that I won the team, singles

and doubles champions of the National Freedom Cup

in 6th grade that I convinced my father to let me keep

playing. At the age of 14 I became a member of the

First Bank table tennis training team. At 15, I suffered

a serious setback when I failed to make the national

team even though my coach had held very high

hopes. Nevertheless, I remained undaunted because

the failure only made me all the more committed to

pursuing my dream.

In my third year of junior high school, I traveled by

myself to Europe for off-site training and competition.

I really treasured this exciting opportunity but also

knew that there is a price for everything. Not having

my parents to look after me and the loneliness of

being on my own taught me how to solve problems

by myself. It also gave me a deeper understanding of

my playing technique and the cool to control the pace

of the game. In my first year of senior high school,

I finally took 1st place in the Under 18 division of

the national competition. I was also selected for the

Asian Junior Table Tennis Championships team. This

was the first time that I played for my country. My success

however was followed by 7 to 8 consecutive months of poor

performances. During this time, I lost many games but I kept

telling myself, "I can't give up now. I haven't tried hard enough

yet." So I continued training even harder and kept looking for

solutions before finally making my triumphant return. I twist my

ankle before entering the Under 18 selections in early 2016. I

survived the experience and was chosen as the 5th player. I then

played even better in France to win two silver medals for single

and doubles.

I must thank First Bank for all the assistance they gave me

throughout this process and my parents for their care. Table

tennis is no easy road. Every problem you solve will only be

followed by even more problems. However, setbacks will only

make stronger. I will be facing even tougher opponents and

even greater challenges in the future. I am however ready and

prepared to see it through because my sights are set on the

2020 Olympics!

3-3 Tennis tournamentTo cultivate and encourage national interest in tennis, FFHC

partnered with Maxxis Group, a business customer, to host the

"First Holding Maxxis Cup National Tennis Team Tournament for

six consecutive years. The competition categories spanned all age

groups including the elementary school division, university division,

open division and masters division. The tournament has grown over

the years to become the top tennis team tournament in Taiwanin

terms of scale, total prize pool and prestige. Over the last six years

it has attracted over 10,000 tennis enthusiasts young and oldto

building up a huge "loyal following!"


Social Harm

ony2015

3-13-23-3

Total new loans in 2015 2015 Loan balance

126

3-4 Supporting young entrepreneurs and SME development

FFHC's fulfillment of its CSR is completely integrated with

our core financial expertise. Ideals such as environmental

protection, feedback and caring are now incorporated into

our core operations.Emerging industries and SME usually

lack the size or history of stable profits to qualify for loans

from the finance industry.First Bank has cooperated with

the Small and Medium Enterprise Credit Guarantee Fund

of Taiwan and used its credit guaranteesto expand the

financing options for domestic SMEs.Every effort is made to

support the growth of SMEs. This also indirectly stimulates

domestic economic growthand creates new jobs. At the

end of 2015, SME loans amounted to NT$608.2 billion,

up NT$22.7 billion from the previous year. In addition,

we also received the SMEG "Direct Guarantee Award",

"Young Entrepreneur Assistance Award" and "Supporting

Young Entrepreneurship Award" for five consecutive

years. We also provide all the assistance we can for

young entrepreneurs needing cash flow assistance. This

demonstrated the fact that First Bank is the best partner

for domestic SMEs.

In 2015 First Bank hosted 10 "Corporate Gold Workshop"

events to better serve SME customers in industrial

parks. This was an increase of 2 sessions over 2014. The

Unit : billion

3-5 University student assistance programTo allow university students to control on their studies, we began supporting the Ministry of Education's university student

assistance program in 2012. As of 2015 more than 378 applications have been. Providing assistance to students to let them

concentrate on their studies means that attending university is no longer so far out of reach after all.

workshops provided interest rate forecasts, CSR and environmental education, SME financial planning and SME credit

guarantee, e-commerce and other financial or business management information. Face-to-face analysis and communication

with SMEs are used to strengthen their business operations, save energy and reduce carbon emissions, open up financing

channels and expand their markets. All of these initiatives have a positive impact.

6,082.01,164.0

12.44.5

Small and Medium Enterprise Credit Guarantee Fund (SMEG)

Youth entrepreneurloan

4

First Culture- Grassroots cultural development 4-1 Loans to cultural and creative industry

4-2 2015 Northeast New Year Concert

4-3 Cultivating arts and culture through musical festival

4-5 Supporting local art traditions

4-6 Spring Couplet Giveaway

2014

2015 166

140 Billion

Billion

127

FFHC has defined the promotion of art and cultural developments in Taiwan as its goal and is committed to supporting

aesthetics education in Taiwan. Since 2006, FFHC has regularly hosted symphony orchestras and pop culture concerts

in northern, central and southern Taiwan. Emerging talents in art and culture are invited to join in the performance. In

2009, a large-scale musical event has been held on January 1 each year to bridge the gap with youths. In 2011 the Group's

Headquarters building was converted into the "First Art Space." The venue is provided to creative cultural artists every

month for exhibiting their works. On the eve of Lunar New Year, a calligraphy artist was invited to write Spring couplets. This

was part of the effort to boost the development of local arts and culture in Taiwan.

4-1 Loans to cultural and creative industry

4-2 2015 Northeast New Year Concert

To support the development of the domestic cultural

creative industry, First Bank is cooperating fully with the

government policy by expediting cultural creative industry

loans. In 2015, we lent more than NT$16.6 billion, an

increase of NT$2.6 billion 2014. This also resulted in the

"A-Grade Bank for Creative Industry Loans" award from

the Financial Supervisory Commission.

The FFHC Group has held a dawn concert at the Northeast Cape on January 1 for seven consecutive years. The number of

participants has continued to climb every year. It is now one of the most popular New Year destinations for young people

today. A strong line-up is invited every year to combine a wealth of different performing elements and different kinds of

exotic cuisine. Channel the general public's love for something new into the power to move forward as well as the tourist

planning carried out by the Northeast Cape National Scenic Area Administration. This will help bring tourists and industry

opportunities to the local area.


Social Harm

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3-43-54-14-2

128

4-3 Cultivating arts and culture through musical festival

First Bank is a longstanding supporter of arts and culture. In 2015, a total of 3 concerts were held in northern, central and

southern Taiwan to provide children from rural schools that have developed their own "special culture" with a place to

perform. Apart from cultivating emerging talents who show high potential, First Bank has also taken the unique approach

of mixing orchestral and pop music. The high-quality concerts have won praise and acclaim from customers and employees

alike. Handicapped people from different minority groups and charities were also invited to join the general public on the

day to lose themselves in the music. Between 3,000–4,000 people attended each contract to share in the feast of music.

A total of 27 large-scale orchestral concerts featuring musical classics have been held since 2006, infusing society with

positive energy and harmony. We are continuing to host these large-scale concerts in order to enrich the musical soul of the

Taiwanese people.

4-5 Supporting local art traditions

In 2011, the First Bank Cultural and Education Foundation converted 1F and 2F of the Headquarters building into the "First

Art Space" to provide local Taiwanese artists with an exhibition and performance venue. Mundane building lobby space has

now been transformed into an elegant art gallery with twelve different exhibitions held in 2015. A total of 58 exhibitions

were held between 2011 and 2015. These have proved very popular and attracted more than 11,600 viewers.

2015.12.4

"Chia Yi Elementary

School Choir", Pingtung

Historic City SightsConcert

2015.4.10

"Unique Atayal

College", Hsinchu

"Taiwan Vox Nativa Children's

Choir", Taichung

Flowers of Spring Concert

Lotus Breeze on a Summer Day Golden Classic Concert

Taipei InternationalConference Center

Hui-Sun Auditorium,Taichung

National Cheng KungUniversity, Tainan

2015.7.31

129

Exhibition period Exhibition theme

2015.1.6-1.27 "Blooming Flowers of Fortune Welcome the New Year"

Exhibition of Inkwash Calligraphy by Jo-Hui Chen

2015.2.3-2.24 "Paper Art by Chang-Yu Yeh"

2015.3.10-3.31 "Flow - Fantasy" Exhibition of Oil Paintings by Chiao-Chen Fan

2015.4.7-4.28 "Blending and Conversation of Colors and Texture" Exhibition of

Paintings by Wen-Chang Lin

2015.5.5-5.26 "Hometown" 2015 Exhibition of Original Oil Paintings by Rong Lin

2015.6.9-6.30 "Resonance of the Heart" Exhibition of Original Artworks by Gina Wu

2015.7.7-7.28 "Art Life" Exhibition of Watercolors by Dr. Chung-Cheng Kuo

2015.8.4-8.28 "Casual Adventures - Solo Exhibitions by You-Hui Chung and

Hsueh-Ching Lin"

2015.9.8-9.29 "International Abstract Masters - Exhibition of Creative Works by

A-Shui Chan in his 70th Year"

2015.10.6-10.27 "Floral Make-up - Exhibition of Color Calligraphy by Shu-Mei Chiu"

2015.11.2-11.24 "First Bank 117th Anniversary Photography Exhibition"

2015.12.8-12.30 "Exhibition of Ceramics by Chun-Sheng Yang"

4-6 Spring Couplet Giveaway

To welcome the Lunar New Year, First Bank and the First Bank Cultural and Education Foundation hosted the "Year of the

Goat Spring Couplet Giveaway" event. Renowned calligraphy artists including Hsiang-Ling Kuo, Chao-Yang Kung, Shun-

Lung Lo, Hung-Hsueh Cheng, Liang-Ming Sung, Chien-Chung Hsu, Chung-Hsin Hsieh, Chien-Hung Li, Che-Chang Lin, Hsing-

Hsiung Lin and Cheng-Ta Tsai appeared at 9 branches throughout Taiwan to write and give out spring couplets to customers

visiting the bank on business. The general public not only had the chance to admire the masters at work but could also take

home with them a spring couplet for a festive start to the Year of the Goat.


Social Harm

ony2015

4-34-54-6

G4-1 Provide a statement from the most senior decision-

maker of the organization (such as CEO, chair, or equivalent

senior position) about the relevance of sustainability to the

organization and the organization's strategy for addressing

sustainability.

Message from

the Chairman

4~5

G4-2 Provide a description of key impacts, risks, and

opportunities.

Sustainable

Governance

22

G4-3

Report the name of the organization. Sustainable

Governance

26~27

G4-4 Report the primary brands, products, and services.

Sustainable

Governance

29~30

G4-5 Report the location of the organization's headquarters. Sustainable

Governance

26

G4-6 Report the number of countries where the organization

operates, and names of countries where either the

organization has significant operations or that are

specifically relevant to the sustainability topics covered in

the report.

Sustainable

Governance

26~27

G4-7 Report the nature of ownership and legal form. Sustainable

Governance

28

G4-8 Report the markets served (including geographic

breakdown, sectors served, and types of customers and

beneficiaries).

Sustainable

Governance

26~27

G4-9 Scale of the reporting organization.

Sustainable

Governance

26~27

2015Global Reporting Initiative (GRI) G4.0 Content Index

Note: Indicates that the index is as stated by external independent assurance statement.

Note: Please refer to CSR and Stakeholder Communications Pg. 17~19 for management guidelines on major factors

General Standard Disclosures

Strategy and Analysis

Organizational Profile

Description External verification

Chapter/Description

Page Index

134

G4-10 a. Report the total number of employees by employment

contract and gender.

b. Report the total number of permanent employees by

employment type and gender.

c. Report the total workforce by employeesand

supervised workers and by gender.

d. Report the total workforce by region and gender.

e. Report whether a substantial portion of the

organization's work is performed by workers who are

legally recognized as self-employed, or by individuals

other than employees or supervised workers, including

employees and supervised employees of contractors.

f. Report any significant variations in employment

numbers (such as seasonal variations in employment

in the tourism or agricultural industries).

Happy

workplace

81~82

G4-11 Report the percentage of total employees covered by

collective bargaining agreements.

Happy

workplace

101

G4-12 Describe the organization's supply chain. Green Finance 65~66

G4-13 Report any significant changes during the reporting period

regarding the organization’s size, structure, ownership, or

its supply chain, including:

• Changes in the location of, or changes in, operations,

including facility openings, closings, and expansions.

• Changes in the share capital structure and other

capital formation, maintenance, and alteration

operations (for private sector organizations).

• Changes in the location of suppliers, the structure of

the supply chain, or in relationships with suppliers,

including selection and termination.

Sustainable

Governance

Green Finance

25

65~66

G4-14

Report whether and how the precautionary approach or

principle is addressed by the organization.

Sustainable

Governance

49

G4-15 List externally developed economic, environmental and

social charters, principles, or other initiatives to which the

organization subscribes or which it endorses.

Green Finance 56

G4-16 List memberships of associations (such as industry

associations) and national or international advocacy

organizations in which the organization:

• Holds a position on the governance body.

• Participates in projects or committees.

• Provides substantive funding beyond routine

membership dues.

• Views membership as strategic.

Sustainable

Governance

31~32


Chapter/Description

Page Index

135

G4-17

a. List all entities included in the organization's

consolidated financial statements or equivalent

documents.

b. Report whether any entity included in the

organization's consolidated financial statements or

equivalent documents is not covered by the report.

Sustainable

Governance

24~25

G4-18 a. Explain the process for defining the report content

and the Aspect Boundaries.

b. Explain how the organization has implemented the

Reporting Principles for Defining Report Content.

CSR

and Stakeholder

Communication

10~12

G4-19 List all the material Aspects identified in the process for

defining report content.

CSR

and Stakeholder

Communication

16~19

G4-20 For each material Aspect, report the

Aspect Boundary within the organization, as follows:

• Report whether the Aspect is material within the

organization.

• If the Aspect is not material for all entities within the

organization (as described in G4-17), select one of the

following two approaches and report either:

-The list of entities or groups of entities included in G4-

17 for which the Aspect is not material or

-The list of entities or groups of entities included in

G4-17 for which the Aspects is material.

• Report any specific limitation regarding the Aspect

Boundary within the organization

CSR

and Stakeholder

Communication

16~19

G4-21 For each material Aspect, report the Aspect Boundary

outside the organization, as follows:

• Report whether the Aspect is material outside of the

organization

• If the Aspect is material outside of the organization,

identify the entities, groups of entities or elements

for which the Aspect is material. In addition, describe

the geographical location where the Aspect is material

for the entities identified

• Report any specific limitation regarding the Aspect

Boundary outside the organization

CSR

and Stakeholder

Communication

16~19

G4-22 Report the effect of any restatements of information

provided in previous reports, and the reasons for such

restatements.

About this

Report

1

G4-23 Report significant changes from previous reporting periods

in the Scope and Aspect Boundaries.

About this

Report

1

Identified Material Aspects and Boundaries


Chapter/Description

Page Index

136

G4-24

Provide a list of stakeholder groups engaged by the

organization.

CSR

and Stakeholder

Communication

10~12

G4-25 Report the basis for identification and selection of

stakeholders with whom to engage.

CSR

and Stakeholder

Communication

10~12

G4-26 Report the organization's approach to stakeholder

engagement, including frequency of engagement by type

and by stakeholder group, and an indication of whether any

of the engagement was undertaken specifically as part of

the report preparation process.

CSR

and Stakeholder

Communication

10~12

G4-27 Report key topics and concerns that have been raised

through stakeholder engagement, and how the organization

has responded to those key topics and concerns, including

through its reporting. Report the stakeholder groups that

raised each of the key topics and concerns.

CSR

and Stakeholder

Communication

16~19

G4-28

Reporting period. (such as fiscal or calendar year) for

information provided.

About this

Report

1

G4-29 Date of most recent previous report (if any).

About this

Report

1

G4-30 Reporting cycle (such as annual, biennial). About this

Report

1

G4-31 Provide the contact point for questions regarding the

report or its contents.

About this

Report

1

G4-32 a. Report the ‘in accordance’ option the organization has

chosen.

b. Report the GRI Content Index for the chosen option

(see tables below).

c. Report the reference to the External Assurance

Report, if the report has been externally assured. GRI

recommends the use of external assurance but it is not

a requirement to be ‘in accordance’ with the Guidelines.

About this

Report

1

Stakeholder Engagemen

Report Profile


Chapter/Description

Page Index

137

G4-33 a. Report the organization's policy and current practice

with regard to seeking external assurance for the report.

b. If not included in the assurance report accompanying

the sustainability report, report the scope and basis of

any external assurance provided.

c. Report the relationship between the organization and

the assurance providers.

d. Report whether the highest governance body or

senior executives are involved in seeking assurance for

the organization's sustainability report.

About this

Report

1

G4-34 Report the governance structure of the organization,

including committees of the highest governance body.

Identify any committees responsible for decision-making

on economic, environmental and social impacts.

Sustainable

Governance

34

G4-35 Report the process for delegating authority for economic,

environmental and social topics from the highest

governance body to senior executives and other

employees.

CSR

and Stakeholder

Communication

8~10

G4-36 Report whether the organization has appointed an

executive-level position or positions with responsibility for

economic, environmental and social topics, and whether

post holders report directly to the highest governance

body.

CSR

and Stakeholder

Communication

8~10

G4-37 Report processes for consultation between stakeholders

and the highest governance body on economic,

environmental and social topics. If consultation is

delegated, describe to whom and any feedback processes

to the highest governance body.

CSR

and Stakeholder

Communication

9~10

G4-38 Report the composition of the highest governance body

and its committees by:

• Executive or non-executive

• Independence

• Tenure on the governance body

• Number of each individual's other significant positions

and commitments, and the nature of the commitments

• Gender

• Membership of under-represented social groups

• Competences relating to economic, environmental

and social impacts

• Stakeholder representation

Sustainable

Governance

35~38

Governance


Chapter/Description

Page Index

138

G4-39 Report whether the Chair of the highest governance

body is also an executive officer (and, if so, his or her

function within theorganization’s management and the

reasons for this arrangement).

Our corporate

chairman is

Mr. Ching-

Nian Tsai/

General

Manager

is Ms. Meei-Ling

Jeng

G4-40 Report the nomination and selection processes for the

highest governance body and its committees, and the

criteria used for nominating and selecting highest

governance body members, including:

• Whether and how diversity is considered

• Whether and how independence is considered

• Whether and how expertise and experience relating to

economic, environmental and social topics are

considered

• Whether and how stakeholders (including

shareholders) are involved

Sustainable

Governance

35~38

G4-41 Report processes for the highest governance body to

ensure conflicts of interest are avoided and managed.

Report whether conflicts of interest are disclosed to

stakeholders, including, as a minimum:

• Cross-board membership

• Cross-shareholding with suppliers and other

stakeholders

• Existence of controlling shareholder

• Related party disclosures

Sustainable

Governance

39

G4-42 Report the highest governance body's and senior

executives’ roles in the development, approval, and

updating of the organization's purpose, value or mission

statements, strategies, policies, and goals related to

economic, environmental and social impacts.

CSR

and Stakeholder

Communication

9

G4-43 Report the measures taken to develop and enhance the

highest governance body's collective knowledge of

economic, environmental and social topics.

Sustainable

Governance

40

G4-45 a. Report the highest governance body's role in the

identification and management of economic,

environmental and social impacts, risks, and

opportunities. Include the highest governance body's

role in the implementation of due diligence processes.

b. Report whether stakeholder consultation is used

to support the highest governance body's

identification and management of economic,

environmental and social impacts, risks, and

opportunities.

CSR

and Stakeholder

Communication

Sustainable

Governance

10~12

38~39


Chapter/Description

Page Index

139

140

G4-46 Report the highest governance body's role in reviewing the

effectiveness of the organization's risk management

processes for economic, environmental and social topics.

CSR

and Stakeholder

Communication

10~12

G4-47 Report the frequency of the highest governance

body's review of economic, environmental and

social impacts, risks, and opportunities.

CSR

and Stakeholder

Communication

Sustainable

Governance

10~12

38~40

G4-48 Report the highest committee or position that

formally reviews and approves the organization's

sustainability report and ensures that all material

Aspects are covered.

CSR

and Stakeholder

Communication

10~12

G4-49 Report the process for communicating critical concerns

to the highest governance body.

Sustainable

Governance

38~39

G4-51 a. Report the remuneration policies for the

highest governance body and senior executives

for the below types of remuneration:

• Fixed pay and variable pay:

–Performance-based pay

–Equity-based pay

–Bonuses

–Deferred or vested shares

• Sign-on bonuses or recruitment incentive payments

• Termination payments

• Clawbacks

• Retirement benefits, including the difference

between benefit schemes and contribution rates for

the highest governance body, senior executives, and

all other employees

b. Report how performance criteria in the remuneration

policy relate to the highest governance body’s and

senior executives’ economic, environmental and social

objectives

CSR

and Stakeholder

Communication

41

G4-52 Report the process for determining remuneration.

Report whether remuneration consultants are involved in

determining remuneration and whether they are

independent of management. Report any other

relationships which the remuneration consultants have

with the organization.

Sustainable

Governance

40


Chapter/Description

Page Index

141

Economic

performance

G4-EC1 Direct economic value

generated and distributed.

Sustainable

Governance

28~29

G4-EC2 Financial implications and other risks

and opportunities for the organization's

activities due to climate change.

Green Finance 62~63

G4-EC3 Coverage of the organization's

defined benefit plan obligations.

Happy

workplace

86 , 91

G4-EC4 Financial assistance received

from government.

None

Market

Presence

G4-EC5 Ratios of standard entry level wage by

gender compared to local minimum wage

at significant locations of operation.

Happy

workplace

85~87

G4-EC6 Proportion of senior management hired

from the local community at significant

locations of operation.

Happy

workplace

80

Indirect

Economic

Impacts

G4-EC7 Development and impact of

infrastructure investments and services

provided.

Green Finance

Social Harmony

67~71

100~101

G4-EC8 Significant indirect economic impacts,

including the extent of impacts.Green Finance

Social Harmony

62~65

106~108

Procurement

Practices

G4-EC9 Proportion of spending on local suppliers

at significant locations of operation.

Green Finance 65~67

G4-56 Describe the organization's values, principles, standards

and norms of behavior such as codes of conduct and

codes of ethics.

Sustainable

Governance

42~43

G4-58 Report the internal and external mechanisms for reporting

concerns about unethical or unlawful behavior, and

matters related to organizational integrity, such as

escalation through line management, whistleblowing

mechanisms or hotlines.

Happy

Workplace

102

Ethics and Integrity

Economics

Specific Standard Disclosures

Description

Description

External verification


Chapter/Description

Chapter/Description

Page

Page

Index

Aspect

142

Energy G4-EN3 Energy consumption within the

organization.

Green Finance 57

G4-EN5 Energy intensity. Green Finance 57

G4-EN6 Reduction of energy consumption. Green Finance 52~71

G4-EN7 Reductions in energy requirements of

products and service.

Green Finance 67~71

Water G4-EN8 Total water withdrawal by source. Green Finance 58

G4-EN10 Percentage and total volume of water

recycled and reused. Green Finance 58

Emissions G4-EN15 Direct greenhouse gas (GHG) emission

(Scope 1)

Green Finance 57

G4-EN16 Energy indirect greenhouse gas (GHG)

emission (Scope 2) Green Finance 57

G4-EN18 Greenhouse gas emissions intensity. Green Finance 57

G4-EN19 Reduction of greenhouse gas (GHG)

emissions.

Green Finance 57

G4-EN20 Emissions of ozone-depleting

substances (ODS).

Green Finance 57

G4-EN21 NOx, SOx, and other significant air

emissions.

Green Finance 57

Effluents

and Waste

G4-EN23 Total weight of waste by type and

disposal method.

Green Finance 60~61

Product and

Service

G4-EN27 Extent of impact mitigation of

environmental impacts of products and

services.

Green Finance 64~65,

67~71

Compliance G4-EN29 Monetary value of significant fines and

total number of non-monetary sanctions

for non-compliance with environmental

laws and regulations.

Green Finance 57

Environment


Chapter/Description

PageAspect

143

Overall G4-EN31 Total environmental protection

expenditures and investments by type.

Green Finance 56

Supplier

Environmental

Assessment

G4-EN32 Percentage of new suppliers that were

screened using environmental criteria.

Green Finance 65~67

G4-EN33 Significant actual and potential negative

environmental impacts in the supply

chain and actions taken.

Green Finance 65~67

Environmental

Grievance

Mechanisms

G4-EN34 Number of grievances about

environmental impacts filed, addressed,

and resolved through formal grievance

mechanisms.

Green Finance 52~71

Employment G4-LA1 Total number and rates of new employee

hires and employee turnover by age

group, gender, and region.

Happy

workplace

82~83

G4-LA2 Benefits provided to full-time employees

that are not provided to temporary

or part-time employees, by significant

locations of operation.

Happy

workplace

84~91

G4-LA3 Return to work and retention rates after

parental leave, by gender.

Happy

workplace

87

Labor/

Management

Relations

G4-LA4 Minimum notice periods regarding

operational changes, including whether

there are specified in collective

agreements.

Happy

workplace

101

Occupational

Health and

Safety

G4-LA5 Percentage of total workforce

represented in formal joint

management-worker health and safety

committees that help monitor and

advise on occupational health and safety

programs.

Happy

workplace

100~101

G4-LA6 Type of injury and rates of injury,

occupational diseases, lost days, and

absenteeism, and total number of

work-related fatalities by region and by

gender.

Happy

workplace

96~97

G4-LA8 Health and safety topics covered in

formal agreements with trade unions.

Happy

workplace

100~101

Labor Practices and Decent Work


Chapter/Description

Page

Social

Aspect

144

Training and

Education

G4-LA9 Average hours of training per year per

employee by gender and by employee

category.

Happy

workplace

99

G4-LA10 Programs for skills management and

lifelong learning that support the

continued employability of employees

and assist them in managing career

endings.

Happy

workplace

99~100

G4-LA11 Percentage of employees receiving

regular performance and career

development reviews by gender and by

employee category.

Happy

workplace

99~100

Diversity

and Equal

Opportunity

G4-LA12 Composition of governance bodies and

breakdown of employees per employee

category according to gender, age group,

minority group membership, and other

indicators of diversity.

Happy

workplace

81~82

Equal

Remuneration

for Women

and Men

G4-LA13 Ratio of basic salary and remuneration

of women to men by employee category,

by significant locations of operation.

Happy

workplace

85~86

Supplier

Assessment

for Labor

Practices

G4-LA14 Percentage of new suppliers that were

screened using labor practices criteria.

Green

Finance

65~67

G4-LA15 Significant actual and potential negative

impacts for labor practices in the supply

chain and actions taken.

Green

Finance

65~67

Labor

Practices

Grievance

Mechanisms

G4-LA16 Number of grievances about labor

practices filed, addressed, and resolved

through formal grievance mechanisms.

Happy

workplace

101


Chapter/Description

PageAspect

Investment G4-HR1 To t a l n u m b e r a n d p e r c e n t a g e o f

significant investment agreements and

contracts that include human rights

clauses or that underwent human rights

screening.

Green Finance 66

G4-HR2 Total hours of employee training on

human rights policies or procedures

concerning aspects of human rights that

are relevant to operations, including the

percentage of employees trained.

Happy

workplace

92~93

Human Rights

Social

145

Non

discrimination

G4-HR3 Total number of incidents of

discrimination and corrective actions

taken.

Happy

workplace

92

Freedom of

Association

and

Collective

Bargaining

G4-HR4 Operations and suppliers identified in

which the right to exercise freedom of

association and collective bargaining

may be violated or at significant risk, and

measures taken to support these rights.

Green Finance

Happy

workplace

65~67

92

Child Labor G4-HR5 Operations and suppliers identified

as having significant risk for incidents

of child labor, and measures taken to

contribute to the effective abolition of

child labor.

Green Finance

Happy

workplace

65~67

92

Forced or

Compulsory

Labor

G4-HR6 Operations and suppliers identified

as having significant risk for incidents

of forced or compulsory labor,

and measures to contribute to the

elimination of all forms of forced or

compulsory labor.

Green Finance

Happy

workplace

65~67

92

Security

Practices

G4-HR7 Percentage of security personnel trained

in the organization's human rights

policies or procedures that are relevant

to operations.

Happy

workplace

93

Indigenous

Rights

G4-HR8 Total number of incidents of violations

involving rights of indigenous peoples

and actions taken.

Happy

workplace

93

Assessment G4-HR9 Total number and percentage of

operations that have been subject

to human rights reviews or impact

assessments.

Happy

workplace

93

Supplier

Human Rights

Assessment

G4-HR10 Percentage of new suppliers that were

screened using human rights criteria.

Green Finance 65~67

G4-HR11 Significant actual and potential negative

human rights impacts in the supply chain

and actions taken.

Green Finance

Happy

workplace

65~67

80~81

Human Rights

Grievance

Mechanisms

G4-HR12 Number of grievances about human

rights filed, addressed, and resolved


Happy

workplace

102


Chapter/Description

PageAspect

146

Local

Communities

G4-SO1 Percentage of operations with

implemented local community

engagement, impact

assessments, and development

programs.

Sustainable

Governance

26~27

G4-SO2 Operations with significant actual and

potential negative impacts on local

communities.

Locations

of operations

are all used

for office work

and are mostly

located in urban

regions so there

were no related

incidents.

Anti-

corruption

G4-SO3 To t a l n u m b e r a n d p e r c e n t a g e o f

operations assessed for risks related

to corruption and the significant risks

identified.

Sustainable

Governance

44

G4-SO4 Communication and training on anti-

corruption policies and procedures.

Sustainable

Governance

42~44

G4-SO5 Confirmed incidents of corruption and

actions taken.

Sustainable

Governance

44

Public Policy G4-SO6 Total value of political contributions by

country and recipient/beneficiary.

None

Compliance G4-SO8 Monetary value of significant fines and

total number of non-monetary sanctions

for non-compliance with laws and

regulations.

Sustainable

Governance

44

Grievance

Mechanisms

for Impacts on

Society

G4-SO11 Number of grievances about impacts on

society filed, addressed, and resolved


Social Harmony 108~109

Society

Social


Chapter/Description

PageAspect

Product

and Service

Labeling

G4-PR3 Type of product and service information

r e q u i r e d b y t h e o r g a n i z a t i o n ' s

procedures for product and service

information and labeling, and percentage

of signif icant product and service

categories subject to such information

requirements.

Green Finance

Social Harmony

73

106~109

Product Responsibility

Social

147

Product

and Service

Labeling

G4-PR4 Total number of incidents of non-

compliance with regulations and

voluntary codes concerning product and

service information and labeling, by type

of outcomes.

Green Finance 73

G4-PR5 Results of surveys measuring customer

satisfaction.

Social Harmony 107~108

Marketing

Communications

G4-PR6 Sale of banned or disputed products. Green Finance 73

G4-PR7 Total number of incidents of non-

compliance with regulations and

voluntary codes concerning marketing

communications, including advertising,

promotion, and sponsorship by type of

outcomes.

Green Finance 73

Customer

Privacy

G4-PR8 Total number of substantiated

complaints regarding breaches of

customer privacy and losses of customer

data.

Green Finance 73

Compliance G4-PR9 Monetary value of significant fines

for non-compliance with laws and

regulations concerning the provision

and use of products and services.

Green Finance 73


Chapter/Description

PageAspect

GRI Financial Service Sector Supplement Content Index

FS1/DMA Policies with specific environmental and social components

applied to business lines.

CSR

and Stakeholder

Communication

8

FS2/DMA Procedures for assessing and screening environmental

and social risks in business lines.

CSR

and Stakeholder

Communication

9~12

FS3/DMA Processes for monitoring clients’ implementation of

and compliance with environmental and social

requirements included in agreements or transactions.

Green Finance

Social Harmony

65~67

108~109

Aspect: Product Portfolio


Chapter/Description

Page Index

148

FS4/DMA Process(es) for improving staff competency to implement

the environmental and social policies and procedures as

applied to business lines.

CSR

and Stakeholder

Communication

Green Finance

8

61~62

FS7 Monetary value of products and services designed to

deliver a specific social benefit for each business line

broken down by purpose.

Green Finance

Social Harmony

62~63

113

FS8 Monetary value of products and services designed to

deliver a specific environmental benefit for each

business line broken down by purpose.

Green Finance 62~63,

67~71

Human Rights Principle 1: Businesses should support and respect the

protection of internationally proclaimed human rights;

Happy

workplace

92

Principle 2: Make sure that they are not complicit in

human rights abuses.

Green Finance 65~67

Principle 3: Businesses should uphold the freedom

of association and the effective recognition of the right

to collective bargaining;

Happy

workplace

100~101

Description

The Ten Principles


Disclosure

Chapter/Description

Chapter

Page

Pg.

Index

Classification

FS9 Coverage and frequency of audits to assess implementation

of environmental and social policies and risk assessment

procedures.

Sustainable

Governance

22

FS11 Percentage of assets subject to positive and negative

environmental or social screening.

Green Finance 56

FS14

Initiatives to improve access to financial services for

disadvantaged people.

Social Harmony 112

Aspect: Audit

Aspect: Active Ownership

Aspect: Local Communities

United Nations Global Compact Content Index

149

Labor Principle 4: The elimination of all forms of forced and

compulsory labor;

Happy

workplace

92

Principle 5: The effective abolition of child labor;and Happy

workplace

92

Principle 6: The elimination of discrimination in respect

of employment and occupation.

Happy

workplace

92

Environment Principle 7: Businesses should support a precautionary

approach to environmental challenges;

Green

Finance

52~62

Principle 8: Undertake initiatives to promote greater

environmental responsibility;and

Green

Finance

52~62

Principle 9: Encourage the development and diffusion of

environmentally friendly technologies.

Green

Finance

62~71

Anti-

Corruption

Principle 10: Businesses should work against corruption

in all its forms, including extortion and bribery.

Sustainable

Governance

42~43

Organizational

governance

Decision –making processes and structures CSR

and Stakeholder

Communication

9~10

Human

Rights

Due diligence Happy

workplace

92~93

Human rights risks situations Happy

workplace

92~93

Avoidance of complicity Sustainable

Governance

42~43

Resolving grievances Happy

workplace

100~102

Discrimination and vulnerable groups Happy

workplace

83~84,

92

Civil and political rights Happy

workplace

92~97

Economic, social and cultural rights Happy

workplace

84~100

Fundamental principles and rights at work Happy

workplace

92

The Ten Principles Disclosure

Disclosure

Chapter

Chapter

Pg.

Pg.

Classification

Core Subjects and Issues

ISO 26000 Index Content Index

150

Labor practices Employment and employment relationships Happy workplace

80~84

Conditions of work and social protection Happy workplace

84

Social dialogue Happy workplace

92~96

Health and safety at work Happy workplace

84~96

Human development and training in the workplace Happy workplace

98~100

The environment

Prevention of pollution Green Finance

52~71

Sustainable resource use Green Finance

58~61

Climate change mitigation and adaptation Green Finance

52~71

Protection of the environment, biodiversity and restoration of natural habitats

Green Finance

52~71

Fair operating practices

Anti-corruption Sustainable Governance

42~43

Responsible political involvement Sustainable Governance

42

Fair competition Sustainable Governance

33~41

Promoting social responsibility in the value chain CSR and Stakeholder Communication

8~15

Respect for property rights Sustainable Governance

42~43

Consumer issues

Fair marketing, factual and unbiased information and fair contractual practices

Green Finance

72~74

Protecting consumers' health and safety Social Harmony

104, 118~120

Sustainable consumption Green Finance

62~71

Disclosure Chapter Pg.Core Subjects and Issues

151

Consumer

issues

Consumer service, support, and complaint

and dispute resolution

Social

Harmony

106~112

Consumer data protection and privacy Green

Finance

72~74

Access to essential services Green

Finance

Social

Harmony

67~71

106~112

Education and awareness Social

Harmony

109~111,

116

Community

involvement

and

development

Community involvement Social

Harmony

112~123

Education and culture Social

Harmony

112~129

Employment creation and skills development Happy

Workplace

80~84

Technology development and access Green

Finance

67~71

Wealth and income creation Social

Harmony

109~111

Health Happy

workplace

Social

Harmony

84~91

119~122

Social investment Social

Harmony

112~129

1 No Poverty Social

Harmony

112~121

2 Zero Hunger Social

Harmony

112~121

3 Good Health and Well-Being Social

Harmony

119~121

Disclosure

Disclosure

Chapter

Chapter

Pg.

Pg.

Core Subjects and Issues

The Seventeen Goals

UN Sustainable Development Goals Content Index

152

4 Quality Education Social

Harmony

116

5 Gender Equality Happy

workplace

92

6 Clean Water and Sanitation Social

Harmony

112~113

7 Affordable Clean Energy Green

Finance

63

8 Decent Work and Economic Growth Happy

workplace

83

9 Industry, Innovation and Infrastructure Green

Finance

67~71

10 Reduced inequalities Social

Harmony

67~71

11 Sustainable Cities and Communities Green

Finance

52~55

12 Responsible Consumption and Production Green

Finance

56 , 67

13 Climate Action Green

Finance

52~62

14 Life Below Water Social

Harmony

113

15 Life On Land Green

Finance

74~76

16 Peace, Justices and Strong Institutions Sustainable

Governance

42~43

17 Partnerships For The Goals Green

Finance

65~67

Disclosure Chapter Pg.The Seventeen Goals

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