Finances · Vietnam, launched in 2007, saw a more than 60% increase in new business in 2016. Our...

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Finances Environment Society

2016 CSR Report

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A Word from the Chairman

Over the past 40 years, Chailease Holding has upheld its principles of value, growth, integrity, and discipline, coupled them with its core competencies, and devoted itself to fulfilling its corporate social responsibilities. It has employed its traditional foundation, including leasing, installments, and financing loans, which it uses to help SMEs grow. We have strived to become a supporting partner to clients and a driving force on economic success. Starting in 2010, Chailease Holding further expanded its green energy and environmental protection products and services, encouraging suppliers and clients alike to join hands to protect the environment and develop green energy. Backed by our employees, we have been expanding social participation as we show concern and give back to society.

Looking back over 2016, Chailease Holding made advances in the areas of economy, environment, and society, fulfilled responsibilities in regard to corporate governance, customer service, environmental protection, employee care, and social participation, pursued sustainable operations, and expanded its influence as it drove the overall utilization of resources and the efficiency of development employing such approaches as value creation and continued growth.

Its business performance was applauded by the MSCI Global Sustainability Indexes, won Taiwan’s Ministry of Economic Affairs Branding Taiwan Award, was ranked by the Taiwan Stock Exchange (TWSE) among the top 5% of listed stocks in its 2017 Corporate Governance Evaluation, and made the list of 30 highest dividend stocks in Taiwan by TWSE and FTSE. It was awarded the National Healthy Workplace Award by the Taipei City Government’s Ministry of Health and Welfare and the Ministry of Labor’s Work-Life Balance Award. Its subsidiary in Thailand, Asia Sermkij, received the Best Company Performance Award from the Securities Exchange of Thailand, while its subsidiary in China, Chailease International Finance, was presented with the Annual Leasing Company Award by China Financial Market Magazine.

In terms of economics, Chailease Holding continued to rely on product and service innovation to maintain its lead position in Taiwan’s financial leasing market with earnings hitting new records each year. Taiwan is the foundation for Company growth and, along with China and ASEAN nations, is one of the Company’s three major growth engines.

China continued to improve customer service, augmenting the efficiency of communications with customers and its hold on information, greatly enhancing the quality of new undertakings, driving operational quality and efficiency. Revenue from ASEAN countries increased to 10% of overall ratio. Our subsidiary in Thailand, established over 30 years ago, was the primary source of those earnings. Our office in Vietnam, launched in 2007, saw a more than 60% increase in new business in 2016. Our branch in Malaysia, founded as a joint venture in 2015 with Berjaya of Malaysia, began turning a profit in 2016. Our subsidiaries in Cambodia and the Philippines, established in 2017, have continued to increase their contributions to ASEAN operations.

In the area of environmental protection, Chailease Holding was truly forward looking, developing solar power farms by leasing the roofs of idle agricultural buildings and factories of clients, completing 373 solar power farms as of the end of 2016, representing a significant increase in the efficacy of energy-savings (102.4%) and carbon emissions reduction (73,620 metric tons/CO2e) over the previous year.

In 2017, Chailease Holding is expected to have in excess of 400 solar power farms and will focus on enhancing solar power industry operations as it sets up a smart solar power photovoltaic management platform and continues to extend its green energy value chain to encompass energy-savings, energy storage, and new energy creation. In addition, our Neihu headquarters building began using the ISO 50001 Energy Management System in 2016, following the implementation of the ISO 14001 Environment Management System in 2014. We are working in the areas of environmental and energy management to promote the planned and systematic incorporation into daily operations of environmental protection concepts and to increase awareness of energy-savings and carbon emissions reductions as well as projects to continue promoting efficient energy use and waste reduction.

As to social issues, Chailease has made advancements in two major areas, employee care and social participation. To us, a “happy company” does not merely mean providing a complete benefits system. A company should also help employees strike a balance between work and their personal lives, offering flexible workhours and helping them and their families settle in. We also promote the idea that working long hours is not equivalent to working effectively, so we encourage flexible work, so employees can enjoy life outside of work.

Showing care for our employees has caused them to show concern for society, creating a virtuous cycle in the process. Chailease employs a sound incentive mechanism, such as offering employees paid days off work to serve as volunteers and encouraging the establishment of volunteer clubs, so that employees will be more willing to volunteer and work with the Company as it strives to give back to society. The Company motivates the staff to engage in volunteer service activities throughout Taiwan, using its human resources to support various public welfare organizations and take Company resources into the corners of society where they are needed. In the one year since it was established in 2015, the “I’m Ready Chailease Volunteer Group” sent out 263 individuals to perform 1,400 hours of volunteer work.

When viewed in terms of economy, environment, and social issues, Chailease started with our own in terms of hard work and contributions. What’s more, we have been doing good things and have become better at doing them. We have continued to look for more opportunities to serve society, becoming a positive driving force in a virtuous cycle that has also served be make us better and stronger.

Chairman

Chen Feng-Long

2016 CSR ReportFinances Environment Society

43

Revenue　

38,007,776

36,827,980

34,552,674

Unit: Thousand NTD

2016

2015

2014

After-tax Net Profits

7,243,268

6,863,272

6,825,408

Unit: Thousand NTD

2016

2015

2014

EPS

6.36

6.02

5.99

Unit: NTD

2016

2015

2014

Return on Assets

4.42

4.74

5.31

Unit: %

2016

2015

2014

Stockholders’Equity

39,310,443

37,887,041

34,338,712

Unit: Thousand NTD

2016

2015

2014

Amount Invested in Energy and Environment

5,472,835

4,150,000

613,705

Unit: NTD

2016

2015

2014

ESCO Financing Energy Efficiency

5.15

17

9.26

Unit: Megawatt

2016

2015

2014

Solar power plants for energy production capacity

109.77

53.14

31.69

Unit: Megawatt

2016

2015

2014

Product and Service CarbonEmissions Reduction

77,034

48,538

21,042

Unit: CO2e

2016

2015

2014

Reduction of Forest ResourceComsumption

4,040,190

Unit: sheet

Number of Employees

2,5021,737

2,3411,588

2,1161,470

Male

2016

2015

2014

Employees Training Hours

103,450

70,155

62,924

Unit: Hours

2016

2015

2014

Employees Benefits

4,880,074

4,507,087

4,118,308

Unit: Thousand NTD

2016

2015

2014

Charitable Donations

40,375,000

35,166,000

26,591,897

Unit: NTD

2016

2015

2014

Charity Service Person-Times

4,200

4,507

5,042

2016

2015

2014

Finances

Environment

Society

Female

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MSCI Global Sustainability Indexes

Branding Taiwan Award, 14th place

2017 Corporate Governance Evaluation, top 5%

30 highest dividend stocks in Taiwan

Taiwan Corporate Sustainability Award (TCSA), silver medal

CommonWealth Magazine’s Corporate Citizenship Award (30th place)

Global Views Monthly’s CSR Top 40

National Healthy Workplace Award

Work-Life Balance Award from the Ministry of Labor

Best Company Performance Award from The Securities Exchange of Thailand

China Financial Market Annual Leasing Company Award

Item 2016 Objectives 2016 Performance 2017 Objectives

Economic Issues

lCorporate governance

evaluation (top 20%)

lFormulate perfor-

mance evaluation

methods for board of

directors

lCorporate governance evalua-

tion (top 5%)

lFinished formulating a board

of directors performance eval-

uation mechanism and imple-

mented first internal self-evalu-

ation

lCorporate governance

evaluation (top 20%) and

increase scored items

Environmental Protection

Issues

lService products drive

growth in reduction of

carbon emissions by

50%

lCompany headquar-

ters continue reducing

electricity use by 3.5%

lIncreased over previous year

by around 60.43%, reduction

of 77,034 metric tons of CO2e

emissions

lCompany headquarters re-

duced electricity use by

20.76%

lDrive growth of reduc-

tion in product carbon

emissions by 50%

Social Issues

lEnhance employee

health management

lPromote work-life

balance

lIncrease number of

volunteer hours to 4

per employee

lOrganized physical and mental

health classes

lRolled out major work and

leisurely life projects

lIndividuals volunteered an aver-

age of 5.5 hours

lContinue promoting

projects to realize em-

ployee work-life balance

lIncrease number of em-

ployee volunteer time by

50%

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Organizational structure

The newly-added Corporate Governance and Ethical Management Committee together with the original Corporate Social Responsibility Committee have been integrated into the Company’s structure. The purpose of this is to implement corporate social responsibility, enhance corporate governance effectiveness, implement integrity management, and promote social responsibility. The Committee will convene at least once a year to assist in incorporating social responsibility into the company's business strategy, to annually review its progress and enhance effectiveness, to plan two to three years in advance and to coordinate with external statutory requirements, in order to improve the organizational hierarchy and become a functional committee under the Board of Directors. Under the committee members, there are five groups that encompass important dimensions of corporate social responsibility. Responsibility is divided among 11 of the Company’s business units and the teams consist of 25 executives and employees in total. Corporate Governance and Ethical Management Committee held two (2) meetings in 2016. The related departments provided reports and had discussions relating to the corporate social responsibility issues, which were resolved by the Committee and executed by the related departments accordingly. 2016 Annual Report of the Committee was submitted to Board in March 2017.

> > > > >

CSR CommitteeMode of Operations

Organizational integration, affiliated Corporate Governance Committee

Method of Implementation

Discuss with committee direction of objectives and plans for implementing them at least once a year and report the results of implementation to board of directors.

Corporate Governance Team

Client Relations Team

Environmental Protection Team

Employee Care Team

Social Participation Team

Operational Management Section

　Legal Affairs Section

Auditing SectionInvestor Relations Section

Planning OfficePublic Relations Section

Administrative Section Human Resources Section

Foundation Public Relations Section

Interested parties Topic Communication method

(frequency) 2016 Performance

Investors lCorporate Gover-nance

lOperating Perfor-mance

lInformation Disclosure lShareholder equitylRisk management

lCorporate and investor briefings (quarterly)

lGeneral Meetings of Sharehold-ers (annually)

lEnglish website information disclosures (at least twice per month)

lA contact window and email communication (instant)

l2016 held 8 corporate briefings and 10 com-munication meetings at home and abroad

Clients lService qualitylPersonal information

managementlGreen Products

lA special area for clients on the company website and a search platform (instant)

lSME forum (annually)lFree customer service hotline

(real time)lCustomer satisfaction survey (an-

nually)

lCustomer satisfaction survey averaged 80%

l2016 held 7 SME forums

Employees lCompensation and Benefits

lTraining and Develop-ment

lLabor rightslEnvironmental

safety

lEmployee Welfare Committee meetings (annually)

lEducation and traininglCommunication meetings

and employee feedback web-page (unscheduled)

lMonthly internal newsletter (monthly)

lA written complaint mechanism (instant)

lChailease won the National Healthy Work-place Award and Work-Life Balance Award from the Ministry of Labor.

lChailease International Finance Corporation won the China’s Best Employer Award.

Government agencies

lRegulatory compli-ance

lEnergy management

lAttend regulatory briefings (un-scheduled)

lCoordinate with the competent supervisory authorities (un-scheduled)

lMarket Observation Post System (MOPS) company information dis-closure (instant)

lTWSE Corporate Gov-ernance Evaluation (top 5%)

Community members

lConcern for the dis-advantaged

lCharitable donations and com-munity service club grant (annu-ally)

lYouth Camp (annually)lCareer talks and workshops (an-

nually)lInternships and company vis-

its (annually)

l2016 investment amount totaled NT$40,375,000, ac-counting for 0.11% of revenue.

l2016 hold 75 activities.

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Information disclosure

Since 2011 when the Chailease Holding was publicly listed on the Taiwan Stock Exchange, it has participated in the Corporate Governance Evaluation, which was conducted by Taiwan Stock Exchange a. Of the 1,496 listed companies that participated, Chailease Holding ranked in the top 5% and was selected as a corporate governance constituent stock.

In addition to publicly disclosing revenue on a monthly basis as stipulated by law, before the 25th day of every month, Chailease Holding voluntarily announces its profits in order to give the investing public a more immediate grasp of its revenue and profits. The company website completely discloses all significant information, including complete financial positions and business operations, important resolutions of the Board of Directors, and important regulations. To ensure a complete public disclosure mechanism, a clear internal implementation process has been established and responsibility has been divided up. The information is classified according to type and attribute and the relevant business units are responsible for managing it. An internal division of labor, reviews, and a confirmation mechanism all ensure the accuracy of the information. The Regulatory Compliance Unit also provides public information relevant to external laws and regulations and accordingly modifies the information for the other business units’ reference.

Ethical Corporate Management

According to Ethical Corporate Management Principles(“the Principles”), and with integrity serving as the basis for policies, a prevention program was created and all employees agree in signed writing an undertaking agreeing to comply with company rules. Moreover, in 2014, the Ethical Corporate Management Best-Practice Procedure and Code of Conduct(“the Code”) was issued. Acts of bad faith, benefits, and a reward system were defined in order to standardize employee business practices and to assign special units responsible for maintaining and implementing corporate ethics policies.

The Principles helps ensure that employees perform their duties according to the law and to ethical codes of conduct, aims to prevent conflicts of interest, and shows our commitment to the pursuit of high ethical standards. New hires are also required to attend courses, including those on corporate ethics and the Ethical Corporate Management Principles. With proper training and a clear stance on company discipline, and with employees’ strict adherence to the Code, we assure that corporate ethics prevails.

Organization regulations

2016: Implemented whistleblower protection practices to ensure whistleblowers’ personal information is kept confidential and to assure they are not retaliated against.

2015: The Company Code of Conduct and the Integrity Management Operating Pro-cedures and Behavioral Guidelines were revised.

2014: The Integrity Management Operating Procedures and Behavioral Guidelines were issued to ensure the complete and clear implementation of integrity man-agement.

2011: The Corporate Governance Code of Practice, the Integrity Management Code, the Corporate Social Responsibility Code of Practice, the Ethical Behavior Guidelines, and organizational regulations governing the Audit Committee and the Remuneration Committee were created.

Employee training

1.Business Ethics, the Company Code of Conduct, and other courses were held and information regarding company discipline was distributed to employees to ensure adherence to ethical behavior and a diligent attitude.

2.Employee incentives and incentive measures were offered to reward employees who reported in advance fraud or any other behavior that might harm the interests of the company.

Self-monitoringFollowing self-assessment of work practices, each business unit regularly conducts internal inspections in order to implement self-monitoring and reduce the risk of neg-ligent operations.

Legal consultancy Service

Contact: Chailease Holding Company Ltd., Legal UnitTelephone: (886-2) 8752-6388 ext. 6282

Complaints channels

Fraud reporting 　　Contact: Chailease Holding Company Ltd., Internal Audit　　Telephone: (886-2) 8752-6388 ext. 6281 　　Fax: (886-2) 8751-9419 　　Email: [email protected] 　　Mailing address: #362, Ruiguang Rd., Neihu Dist., Taipei, 114Code of Conduct violations reporting　　Contact: Chailease Holding Company Ltd., Human Resources Director　　Telephone: (886-2) 8752-6388 ext. 6280 　　Email: [email protected] 　　Mailing address: #362, Ruiguang Rd., Neihu Dist., Taipei, 114

Corporate Governance

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Regulatory compliance

When Chailease Holding went public in 2011, it voluntarily raised its regulatory compliance standards. Like financial institutions, it established special business units to develop regulatory compliance management practices. Major subsidiaries, including Chailease Finance Co., Ltd. and Chailease International Finance Corporation, also developed regulatory compliance management practices. They regularly hold regulatory compliance training and awareness programs to ensure their operations and products comply with internal and external regulations. In addition, they conduct annual internal regulatory compliance inspections and report the results to the Board of Directors.

Chailease Holding appointed a regulatory compliance director and created the Legal Advisory Unit to manage the regulatory compliance system. The Unit is responsible for planning, implementing, managing, and assessing the system. Its main duties include clear and appropriate conveyance, consultation, coordination and communication, and verifying that operation and management policies comply with current laws and regulations.

Special staffs from the Legal Division assess the appropriateness of business operations to ensure they meet the

prescribed internal review and operating regulations, thereby safeguarding the interests of customers and upholding the company's reputation and image, in the following areas:

1. New types of business and the financial structure of new products2. Key business activities, including joint marketing, commissioned jobs, and commercial cooperation agreements3. External business and publicity advertising documents

Compliance

(1) The Board of Directors regularly reviews the appropriateness and implementation of the regulatory compliance system.

(2) Maintain the independence of the regulatory compliance staff and strengthen their functions.

(3) Strengthen mutual cooperation between the regulatory compliance and internal au-dit units.

(4) Strengthen the supervision of each unit regarding compliance, review internal audit deficiencies, and use cases of wrongdoing for training purposes.

Prevention assessment

Special staffs from the Legal Division assess the appropriateness of business oper-ations to ensure they meet the prescribed internal review and operating regulations, thereby safeguarding the interests of customers and upholding the company’s reputa-tion and image.(1) New types of business and the financial structure of new products(2) Key business activities, including joint marketing, commissioned jobs, and com-

mercial cooperation agreements(3) External business and advertising publicity documents

Risk Management

When facing the overall economic environment, we will always uphold the concept of risk management in order to take advantage of industry developments and future prospects. By adopting a decentralized customer base, by decentralizing industries, and through geographic dispersion, we effectively reduce the risk of loss due to market changes. The company created a Risk Management Unit in order to maintain sound and efficient risk management mechanisms and develop risk management policies. The Board of Directors Internal Audit Unit is responsible for review and assessment of the internal control system to ensure its sustained and effective implementation.

Supplier Management

Chailease Holding exerted greater influence on the supply chain by choosing local manufacturers as partners in all of its procurement cases. In 2014, we developed the Supplier CSR Guidelines, which specify the ethical standards for each supplier, and provide norms for respecting labor rights and maintaining sustainable development. In 2015, a new Supplier Code of Conduct was created, which added a breach of trust covenant requiring major suppliers in Taiwan with annual expenses in excess of NT$1 million to jointly promote corporate social responsibility to fulfill our common goals of achieving high moral standards, respect for human and labor rights, and promoting environmental sustainability.

Company employees are provided boxed lunches from outside sources. To ensure food safety and cleanliness, the Company headquarters administrative office sent specialists to the meal providers when food is being prepared from time to time to inspect food preservation, the food production process, boxes, and packaging, to ensure product quality. At present, we are working with ten meal providers in this way.

Risk factors Defense mechanisms Management unit

Credit risks

1. Rigorous credit review and approval system. The process in-cludes:

2. Customer credit rating scoring system and credit risk assess-ment models to predict customer default risk

3. Asset quality monitoring, interactions limited to specific indus-tries, flexibility to adjust business strategies and credit policies

4. Education and training, including case studies, to strengthen employees’ and auditors’ risk assessment capacity.

First layer: Employees and auditorsSecond layer: Risk Management UnitThird layer: Risk Man-agement Committee

Market risks

1. Observing changes in market interest rates, implementing inter-est rate risk analysis, and adjusting the structure of assets and liabilities

2. Adjusting the structure of short and long-term loans, maintaining an appropriate reserve of funds, and establishing emergency response mechanisms

Accounting Unit

Legal risks1. Abiding by government regulations and appropriately reviewing

new business and government regulations2. Supervising and investigating to ensure employees comply with

the law.Legal Unit

Environmental risks

1. Conducting climate risk assessments, employing coping strate-gies, and promoting green goods and services

2. Implementing an environmental management system for envi-ronmental protection, reducing energy use and carbon emis-sions, recycling and other waste reduction

Planning UnitAdministrative Unit

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Products and Services　　

Chailease Holding applies the concept of Service with Passion to continue cultivating the Taiwan market, in addition to actively expanding overseas markets. With enthusiasm as our foundation, we hope to continuously improve service quality and efficiency to make our services more aligned to customer needs. Chailease Holding is a better company because of our customers. In the future, we will promote “A successful partnership with customers drives economic development” business philosophy, as we work toward the goal of becoming one of the best finance companies in the Asia-Pacific region. We hope to be a positive and uplifting force in the financial leasing industry, protecting customers, society, and shareholders, while simultaneously creating sustainable value for all.

We provide leasing, installment sales, direct financing, factoring, and other services for our products, while equipment leasing and installment plans comprise our core business. We continue to develop new products, including Energy Service Company (ESCO), green energy services, inventory financing, and insurance brokerage services.

Helping industry

Branches: An international network consisting of a vast number of branches provides customers with complete service channels. Taiwan has 13 service locations, Mainland China has 35, Thailand has 27, Vietnam has 4, Malaysia has 1, and in 2016, two subsidiary was open in Cambodian and the Philippines.

Mobile services: Chailease is committed to creating successful-customer partnerships. In November 2016, our subsidiary, Chailease Consumer Finance Co., Ltd, developed a mobile app that enables installment payments. In April 2015, the Chaipay purchasing platform was launched. Through it, consumers can safely and conveniently purchase from a variety of merchants. At the same time, the platform helps participating suppliers facilitate payment collection and it aids them in expanding their businesses. Chailease Auto Rental, a Chailease subsidiary, has also released a free car rental app.

Web platforms: Numerous web search platforms have been set up to allow customers and business partners to monitor business progress and audit results. Internal business platforms have also been created to allow employees to quickly conduct business and improve overall operating efficiency.

Interactive platform: Chailease Holding cares about long-term SME development. It organizes forums and seminars to help SMEs create business models that give them a competitive advantage. Leading representatives from industry, government, and academia are invited to the forums to share their valuable knowledge and practical experience, thereby providing SMEs with a cross-industry exchange platform. The forum was held seven times in 2016 has been held for a total of 44 since 2011, 4,317 people have participated.

Customer service hotline: We provide a convenient toll-free customer service hotline, which also features a customer complaint handling mechanism. The platform boasts a complete business-opportunity and customer-complaint tracking system so that each call, be it a customer inquiry or complaint, shapes the future direction of our efforts.

Widespread locations

Moblie services

Diverse products

Webplatforms

Interactive platform

Customer service hotline

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Finances Environment Society

Service optimization

In order to take a multi-faceted approach to customer service and to further improve service quality, in 2016, Chailease’s subsidiaries Chailease Finance Co., Ltd. and FINA Finance & Trading Co., Ltd. continued conducting customer satisfaction surveys. Questions about product and service needs were added in the hopes that the results would serve as the basis for improving service and service development. In this way, we can simultaneously know if our services meet customer needs.　　In 2016, approximately 5,900 corporate customers took the Customer Satisfaction Index Survey, which asked about service

attitude, industry understanding, product descriptions, operational accuracy, service efficiency, after-sales service, overall performance, future interactions, and recommendations to others. The customer satisfaction indicators were then quantified and converted into a score. After the results were calculated, a qualitative approach was also used to gain more information about special cases. These results became an important topic in management committee meetings. It is hoped that by establishing multiple communication channels, we will be able to hear more customer voices, understand customers’ real needs, and propose the most appropriate improvement methods to achieve our goal of providing customers with the best possible service.

Chailease Holding values a variety of different perspectives. In addition to actively collecting customer feedback, we have also created a staff proposal system. By offering incentives to staff to think up innovative ideas, we hope to always be one step ahead of the customer in anticipating their needs.

Personal Information Protection Team

Planning Unit IT Unit Legal Advisory Unit Audit Unit

Chailease Holding Personal Information Protection Team Structure

Personal information security

The Company has a mechanism to protect personal information, including an information classification management method, personal information protection, an information security policy, information security management, and other specifications that clearly define procedures and authorizations for using, storing, managing and deleting personal information. These steps ensure that personal information is handled in accordance with the Personal Information Protection Act.

Personal information protection is carried out by IT personnel according to security and operational risk levels. Personal information is masked. Only certain employees are granted access to the information, depending on the scope of the work being performed. Internal customer data transfers also follow strictly-controlled protocols and are regularly reviewed by the Internal Audit Unit. All of these measures are taken in order to enhance the company's employee and customer data protection and to abide by the law.

77,562metric tons of carbon emissions= 646,300 trees

Green Engergy Services

Energy Management+

ESCO FinancingGreen Energy Investment ServicesSolar power plants

Apply management systemIncrease energy efficiencyEmployees take initiative to protect environment

Conserve Energy and Reduce Carbon Emissions

Note: Council of Agriculture’s Forestry Bureau estimates that one tree absorbs 12 kilograms of carbon a year.

Saving EnergyCreating Energy Storing EnergyEnergy savings financingCredit policies

Promote technology energy application

Solar power plantsSubscribe green power trial

　　 Green Services

2016 CSR Report

17 18


　　

Energy savings

In 2010, Chailease launched ESCO Energy-Efficiency Financing Services which, in conjunction with Energy Service Company (ESCO) cooperated to assist SMEs with energy-efficient and carbon reduction projects. According to proposals made by energy-saving business owners or by ESCO either (1) an energy-saving performance guarantee plan or project or (2) a plan to improve an energy-saving project was chosen. Then flexible leasing or installments plans were designed to meet the financing needs of different energy-saving projects. In 2016, the total energy production capacity of solar power equipment approved for loans was 5.15 MW. It reduced carbon emissions by 3,414 t. In addition, we held SME energy-efficiency forums to discuss in-depth energy-efficiency financing issues, to share information regarding new trends in the green industry, to enhance SMEs’ awareness of environmental protection, and to jointly implement energy efficiency and carbon reduction.

While Chailease is dedicated to ensuring a reasonable return on shareholder equity with its credit business, it is also

committed to adhering to the World Bank’s Equator Principles by implementing and assisting with carbon reduction, renewable energy, and other aspects of the green energy industry. Green companies tend to have a more robust corporate body, so in addition to giving them positive credit evaluations, we also actively encourage our employees to promote them. Moreover, in the future, we will standardize credit evaluation procedures by launching a feasibility plan that incorporates a company’s environmental and social indicators into the evaluation.

Renewable Energy

Chailease Energy Co., Ltd., a subsidiary, leases and installs solar panels on the roofs of SME chicken coops and compositing sites. Since 2015, the Company built or acquired 107 solar power plants, and now owns a total of 373. The power plants boasted a total energy production capacity of109.77 MW, about 2.1 times more than that of 2015, and are expected to reduce carbon emissions by 73,620 t annually.

In the future, we will be even more active in the energy-production and energy-efficiency industries. By focusing on solar power plants and achieving economies of scale, we expect a total generating capacity of 150 MW by 2018, with power plant assets amounting to NT$10 billion. The development of energy-saving heat pumps and air conditioning, LED lighting and other environmentally-friendly products also aids in the implementation of a variety of energy-saving ESCO cooperation projects.

We will expect to have in excess of 400 solar power farms in 2017 and will focus on seting up a smart solar power photovoltaic management platform. It consists of an arrangement of several components, including solar panels to absorb and convert sunlight into electricity, as well as mounting. It may also use a solar tracking system to improve the system's overall performance. The large size of the dataset can be suitable methods when valuing solar PV farm assets.

SME leaders at the energy-savings forum. Chailease President Simon Hou is fourth from the left. Taiwan Sustainable Development Foundation Chairman Eugene Chien is standing fifth from the left.

Energy storage

At the same time, in response to changing trends of future energy use, Chailease Energy Development Corporation, a subsidiary, also assists customers by promoting new energy creation, energy transfer, and energy storage technologies. The skilled application of energy planning includes smart power grids, electric vehicles, charging stations, and the application of energy monitoring and management systems. In addition to continuing to promote energy efficiency and carbon reduction, the Company is further committed to helping enterprises establish comprehensive and innovative energy management strategies in order to integrate them with future industry trends.

In the future, Chailease Holding will continue to gradually expand related business development through its energy-efficient and green-energy value chain. By replicating Taiwan’s energy-efficient model, we will develop other overseas markets in order to make a contribution to protecting Earth’s resources.

Initiatives

Green Earth Initiative: In 2016, the Company invited employees to take part in “Earth Hour”, an activity in which lights were turned off around the world for one hour starting at 8:30 in the evening on March 19 to save our planet. The activity is aimed at CO2 emissions, which are triggering global warming and climate change. The WWF (World Wide Fund for Nature) launched Earth Hour in 2007, calling on each person to shut off lights to reduce carbon to show their love for the planet. In excess of one billion people in over 7000 cities in more than 163 countries around the globe took a small step that day by shutting off unneeded lights to take us a giant leap closer to a green planet. Individuals worked together, so that they could bring about a healthier living environment.

Energy Management Initiative: At an energy-savings forum, held on April 13th in National Taiwan University’s International Conference Center in Taipei, President Simon Hou served as host and asked specialists from industry, the government, and academia to share their views on the latest world trends and share how benchmark companies have succeeded to help SMEs reduce the time needed to get on the right track, tap into the new green vitality, and realize sustainable growth. Almost 100 people attended in person, while nearly 10,000 others read the conference information in magazines and online.

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Ecology Protection Initiative: We joined the International Coastal Cleanup, an event organized each September by the Society of Wilderness. Personally taking part in this event has enabled us to understand the current condition of the oceans and think about what changes we can make in our daily lives to help improve the situation. The theme for the event in 2016 was “Love the Ocean Intimately”, because most of the people of Taiwan live less than 50 kilometers from the ocean as the crow flies. The event called on them to visit the coastal area nearest them and help return it to a pristine state in which they can run barefoot in the sand without fear and in which sealife can enjoy an uncluttered ocean. More than 40 employees participated in the event and almost 2,000 others learned about the goals of the event through internal publications.

Employee Awareness Initiative: The purpose of this initiative was to educate about the environment and plant seeds of awareness among employees. Almost 30 individuals attended. Experts from outside the Company were invited to come and speak and offer training and education on energy. Lectures were given to teach employees how to fulfill their responsibility to better save energy and reduce carbon emissions as well as about important issues like sustainable development.

Employees from the Hsinchu office on site at event

Environmental Energy Policies

Bring together our core business capabilites, expand our influence, guide clients and suppliers

Continue to make contributions in the area of green energy, support the development of reusable energy

Save energy and reduce carbon emissions, resource linking, reduce impact to environment

Taipei City Government Ministry of Health and Welfare - National Healthy Workplace AwardThe 10th China Employer Branding Forum - China Employer Branding AwardChina Business Journal - Top 10 Happiest CompaniesLabor Committee - Excellent Institution for Valuing Female Human ResourcesTaipei City Department of Labor - Happiest Company Award (2 stars)Taipei City Department of Labor - Best Breastfeeding Room (100/100 points)

Benefits include economic, insurance, entertainment, facilities, and training and development. Moreover, an annual Model Employee Award Ceremony is held. Employees who have demonstrated excellent performance receive public recognition and get to personally accept their awards from management. They are also given personal leave and a bonus. Additionally, Long-Service Gold Medals are awarded every five years to thank senior staff for their long-term contributions.

Economic Insurance Entertainment Facilities Training & development

● Employee stock● Maternity allowance● Child education allowance● Marriage allowance● Funeral allowance● Birthday bonus● Gold long-service badges

● Regular health check-ups● Group insurance● Medical treatment allowance● Accident insurance

Employee clubsAnnual company tripMovie outingsChinese New Year banquet & New Year's Gathering Massages

LibraryBreast-feeding rooms

EMBA allowanceForeign language learning allowance

　　 Employee Care

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Company information

Monthy e-newsletter

Internal employee appeals

Express opinions

Appeals channel

Two-way communication

Intranet discussion forum

Executive meeting

Appeals channel

Occupational Health and Safety Commission

To reduce the risk of harming the environment, to prevent occupational hazards, and to continuously improve the workplace environment and safety conditions, we have conducted training and education for health and safety officers, employees, and contractors. In order to ensure employee health and safety, we have created the Occupational Safety and Health Committee.

Committee member

Director of Environmental Safety

Executive Secretary

Head of Environmental Safety

Committee member

Environmental Safety Officer

Committee member

Human Resources Director

Committee member

Nurse

Committee member

Sustainable Business Director

Committee member

Sustainable Business Officer

Committee member

Legal Advisory Director

Occupational safety

Health management

Occupational health

Regular employee health checksAutomatic blood pressure monitorAttending physicianNurseMonthy health information

ChairmanGeneral Manager

Fire escape facilitiesEmergency escape routes and exits Emergency drillsAutomated external defibrillator (AED)Occupational Safety and Health Administrator

Regular drinking water testingCentral air-conditional systemRoutine disinfection

‧Free regular employee health checks‧Free health checks for dependents of exucutives

‧Free physician consultations

‧Health and nutrition seminars

‧Health e-newsletter

‧Health irregularities reports

‧Health history comparison reports

‧Hierarchical health-care management

‧Results tracking

‧Dynamic aerobic yoga classes

‧On-site massage therapist

‧Diverse employee clubs

‧Stress management seminars

‧Weight control‧Healthy meals‧Stop cessation seminars

Health checks

Physical health

Health information

Data analysis

Emotional & psychological

health

Health check management

Health promotion

All employees

Professional development

Qualifications selectionNew hire training

Job rotationPersonal development plan

EMBA allowanceSuccession plan

Sales & risk management dual trainingMicro enterprise servicesProfessional customer serviceProfessional legal practiceProfessional automotive knowledgeAsia Pacific Management Associate

Awards development

2011: Council of Labor Affairs (Ministry of Labor), National HRD InnoPrize2013: Aon Hewitt, Taiwan’s Best of the Best2013: Association for Talent Development (ATD), Excellence in Practice Award.2015: Association for Talent Development (ATD), Regional Development Model.

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Business experience campBusiness internshipAdvanced studies

消防逃生設施

緊急逃生路線及出口

緊急應變演練

體外心臟電擊器(AED)

勞工安全衛生管理員

業審雙修

微企業務

客服專業

法務專業

車輛專業

亞太MA

EMBA補助

接班人計畫

Volunteer trainingVolunteer services

Career workshopsPerformance workshopsSelf-explorationPositive thinking

Chailease badminton team trainingTaoyuan City Qiao'ai Elementary School Soccer Team ProjectAcademic grants and scholarshipsLove contributions

Youth Career Development

Business Volunteer Services

Career Growth Lectures

Various Projects for Public Good

Since its founding in September 2004, the Chailease Foundation has continued to offer its achievements and experience to young people as a community service as a way of giving back to society, helping them find a career development path suited to their own situation. In order to expand the amount and enhance the efficiency of its services, it has also brought together government, schools, and non-governmental organizations to organize diversified activities to provide those receiving services different perspectives and experiences. Furthermore, beginning in 2015, the Company launched the Chailease badminton team to train promising badminton players to provide them multipronged career development. In 2016, the Company either organized or sponsored a total of 75 activities that served over 4,200 individuals.

　　 Social responsibility

Career Development

Chailease has combined the resources of its two largest holding companies—Chailease Holding and Yellowstone Holding, and its experience in the financial, leasing, and tourism and leisure industries to provide young people opportunities to experience first hand what working in the industries is truly like, cultivating specialists in the financial, leasing, and tourism and leisure industries for society in the process.

Volunteer Services

Since its formal founding at the end of 2015, the Chailease Business Volunteer Squad has been actively organizing and holding a variety of volunteer training classes, providing volunteer services, and arranging opportunities for colleagues to perform volunteer work all around Taiwan. It has been doing this to meet the needs of organizations and to recruit individuals in business interested in performing volunteer work. As it provides services, the Company is showing its concern for other human beings, while receiving praise from other service organizations.

Because its business volunteers offer volunteer services, the Chailease Foundation has organized volunteer services training, including introductory level training, advanced training, camp leading, and physical performance training. In 2016, it trained 90 individuals in four training classes to help them lay a foundation in service know-how.

In addition to setting up “I’m Ready” to serve as a core group of volunteers to promote volunteer services on a continual basis, Chailease also called on employees in the various branch offices under Chailease Holding to work in coordination with local social welfare organizations and provide volunteer services to meet their needs. In 2016, we provided 263 individuals who performed 1,400 hours of volunteer work in 13 activities for an average total of 5.55 hours per person.

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Career growth

Successful individuals shared their experiences, while professional career development speakers gave lectures and workshops to teach young people how to develop the habit of positive thinking and give them the courage needed to overcome difficulties and equip them to realize their dreams.

Diverse projectsIn addition to organizing activities itself or by cooperating with outside entities, the Foundation also offered distinct

programs for young people in remote areas and individuals seeking multipronged career development to help them reach their full potential and set themselves on a path toward success.

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