Attach Importance to Stakeholders
The Bank has always attached great importance to the voices of stakeholders, providing diverse communication channels and mechanisms to continuously listen to, understand, and strive to meet the expectations and needs of stakeholders. This enables us to gain a deeper understanding of stakeholders' concerns regarding sustainability. Following the GRI guidelines and the AA1000 Stakeholder Engagement Standard, we adhere to four core principles of stakeholder engagement: significance, effectiveness, flexibility, and respect. We identify seven major stakeholder groups and through continuous interaction and deep engagement, strengthen trust and common interests. Together, we move forward and create a sustainable future.
Stakeholder Category Importance
Employees Employees are the most important asset of the Bank, which directly affects the Bank's service quality and innovation capabilities. Employ- ee satisfaction, professional development and health and happiness are the keys to achieving sustainable business goals.
Customers Customers are at the heart of our business, and we are committed to improving customer satisfaction and creating greater customer value by listening to their opinions and needs.
Suppliers We see the sustainable practices of our suppliers as an important strategy to maintain supply chain stability and reduce environmental impact.
NGO/NPO NGOs/NPOs play a crucial role in promoting social welfare, environ- mental conservation, and philanthropic endeavors. Through collabora- tion with these organizations, the Bank has strengthened our efforts in corporate social responsibility and sustainable development.
Communities Through engagement and investment in community development, we are committed to promoting community prosperity and positive social impact.
Government The Bank is committed to creating a robust operating environment by actively responding to government policies and strictly complying with regulatory requirements.
Shareholders and Investors Through the pursuit of sustainable development and transparent com- munication, we are committed to maintaining the trust and support of our shareholders and investors.
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Double Materiality
Double Materiality
CUB collected 16 material sustainability issues affecting stakeholders in accordance with the guidance of the GRI Standards by compiling international trends such as the interbank sustainability theme and the disclosure standards set by SASB for the banking industry. The Bank adopted a double materiality approach to assess the sustainability development impact and operational impact brought about by the sustainability issue, of which the operational impact includes the impact of financial risks. Further, according to the ranking of the significance of the impact, the Bank classifies key material sustainability issues into 7 key material issues, 8 focus issues, and 1 basic issue.
Key Material Issues
Sustainable Finance and Responsible Finance Product
Digital Transformation and Innovation Product
Social Impact Social
Privacy and Information Security Governance
Customer Relationship and Service Product
Risk Management Governance
Compliance Governance
Focus Issues
Talent and Skill Development Social
Business Performance Governance
Climate Change Environmental
Attracting and Retaining Talents Social
Fraud Prevention and Advocacy Product
Corporate Governance and Ethical Corporate Management Governance
Financial Inclusion Product
Inclusive Workplace Social
Basic Issue
Green Operations Environmental
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Set Short-, Medium-, and Long-Term Targets,
Set Short-, Medium-, and Long-Term Targets,
For the Identified Key Material Issues
For the identified key material issues, we follow the IFRS S1 sustainability standards to evaluate the risks and opportunities these issues present to CUB. Based on the GRI guidelines, we establish management policies and set short-, medium-, and long-term targets. We will regularly review our progress and disclose it in our sustainability report, continuously improving our management policies to achieve the targets of sustainable business operations.
Key Material Issue Opportunities and Risks Key Material Issue Opportunities and Risks
Sustainable Finance and Responsible Finance:

Integrate ESG factors into our core business activities and work with our clients to implement sustainable value to achieve the goal of corporate and ecological coexistence and co-prosperity.
  • Sustainable finance and responsible finance values support environmentally and socially responsible investment projects that promote environmental and social well-being. Achieving sustainable value not only enhances the Bank's market position, but also contributes to long-term profitability, providing ongoing economic benefits to the Bank.
  • Failure to value sustainable and responsible finance may result in investments in projects with high environmental risks or low social responsibility. Such investment strategies can have a negative impact on the environment and society, as well as on the Bank's long-term profitability and market position.
Digital Transformation and Innovation:

Enhancing business models and service quality through technological innovation and digital strategies.
  • By leveraging digitalization and technological innovation, business process efficiency and customer experience can be improved, thereby enhancing market competitiveness. Digital transformation also helps protect the environment by reducing resource consumption and improving energy efficiency, thereby reducing the Bank's environmental impact.
  • Lacking digital skills and innovative thinking can lead to customer churn and limited ability to innovate. Employees whose skills lag behind digital trends can affect operational efficiency and service quality, ultimately impacting market competitiveness.
Social Impact:

Social impact includes the implementation of measures aimed at promoting the welfare of the community and protecting the environment.
  • Actively improve strategic satisfaction and productivity among strategic partners to promote stable cooperation. Respond to customer and community needs to strengthen customer relationships and expand business opportunities. Comply with environmental protection regulations to enhance public trust and corporate reputation.
  • Neglecting strategic partners can lead to dissatisfaction and reduced productivity, which can affect the stability of cooperation. Ignoring customer and community needs can damage customer relationships and limit business development. Failure to comply with environmental protection regulations may result in public dissatisfaction and legal liability, affecting corporate reputation and long-term development.
Privacy and Information Security:

Protecting customer data to prevent unauthorized access and leaks.
  • Effectively protecting customer privacy and data security builds customer trust and reputation.
  • Failure to properly manage customer privacy and data security can lead to customer dissatisfaction and a crisis of confidence. Data breaches or information security incidents can result in legal action and fines, which can damage a company's reputation and subsequently affect customer loyalty and business opportunities.
Customer Relationship and Service:

Maintaining and enhancing relationships with customers by providing high-quality service is crucial, alongside ensuring the legality and integrity of marketing activities.
  • Providing excellent customer service and effective relationship management builds trust and satisfaction, ensuring long-term business stability and success. Conducting legal and ethical marketing campaigns avoids misleading advertising and strengthens the Bank's public image and brand reputation.
  • Failure to maintain high standards of customer service and relationship management can lead to a decline in customer trust and satisfaction. Misleading advertising and unlawful marketing strategies can result in legal action and fines, which can severely damage the Bank's public image and brand reputation.
Risk Management:

Identify, assess, and manage various risks that may affect operations, including financial, legal, environmental, social, and corruption risks.
  • Effectively protecting customer privacy and data security builds customer trust and reputation.
  • Failure to properly manage customer privacy and data security can lead to customer dissatisfaction and a crisis of confidence. Data breaches or information security incidents can result in legal action and fines, which can damage a company's reputation and subsequently affect customer loyalty and business opportunities.
Compliance with Legal Requirements:

Comply with relevant laws and regulations, including those in labor, environment, and finance to maintain the longterm stability and development of the Bank.
  • Strict compliance minimizes legal and litigation risks, protects the Bank's reputation, fosters trust with partners and customers, and supports stable business growth.
  • Failure to comply can result in legal liability, fines, and reputational damage. Non-compliance could result in financial burdens, strain relationships with partners and customers, and affect market competitiveness and business development. In the long term, it could adversely affect the Bank's market position and investor confidence.
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Cathay United Bank Sustainability Report 2023

Learn More About CUB's Sustainability Actions
Latest Sustainability Report