Gold recognition for Asia’s Best Sustainability Report (Governance) at the 11th Asia Sustainability Reporting Awards underscores a pivotal phase for KGI Life Insurance, which rebranded from China Life Insurance Co., Ltd. (Taiwan) on 1 January 2024. CEO Yu-Ling Kuo describes the honour as more than an external accolade, calling sustainability reporting “an exercise in rigorous self-examination” that validates the insurer’s board-led governance approach and reflects how sustainability is now woven into its culture, strategy and long-term value creation.
Q1: Congratulations on your company’s success at the Asia Sustainability Reporting Awards. What does this achievement signify from a leadership perspective?
We are deeply honoured by this recognition from the Asia Sustainability Reporting Awards (ASRA). From a leadership standpoint, this distinction highlights three critical aspects of our journey. First, it affirms the effectiveness of KGI Life’s sustainability governance mechanisms. The Board of Directors acts as our highest supervisory body for sustainable development. Under the Board, we have established the “Sustainable and Ethical Management Committee,” which meets quarterly to oversee policies, performance indicators, and concrete action plans. I am particularly grateful for the unwavering support and guidance of our Board, which has been instrumental in our steady progress towards creating a net-zero investment portfolio by 2045.
Second, it demonstrates our resolve to drive an internal cultural shift. Compiling the sustainability report is an exercise in rigorous self-examination, and this award serves as tremendous encouragement for our entire team. It signifies that sustainability is now embedded in KGI Life’s DNA—evident in initiatives ranging from paperless services and responsible investment practices to our agents’ promotion of risk awareness and inclusive finance. Ultimately, every employee is a contributor to our sustainability story.
Q2: How does sustainability fit within your overall business strategy and long-term value-creation goals?
At KGI Life, sustainability is a primary driver of long-term value creation. We embed ESG strategies directly into our core competencies, promoting sustainability from the very first stages of decision-making. Our execution is built on two main pillars:
First, leading the green transition. As an institutional investor, we exercise influence through responsible investment. We have implemented climate risk management protocols and set Science-Based Targets (SBTi). As of the end of 2024, our exposure to high-carbon industries remained at 16.7%, significantly below our 24.5% threshold. Furthermore, our green and sustainable investments totalled NT$44.8 billion—a 45.7% increase from our 2022 baseline—actively driving decarbonisation throughout our value chain.
Second, promoting social inclusion. Adhering to a customer-centric approach, we have ranked in the top tier of Taiwan’s Fair Customer Treatment assessments for six times. Simultaneously, we are advancing financial inclusion through microinsurance and digital equity initiatives. In 2025, regulators honoured us with the “Disability Care Award” for our microinsurance efforts, further reinforcing our commitment to social responsibility.
We firmly believe that we can only create lasting value for shareholders, policyholders, employees, and society by embedding sustainability into every insurance policy and investment decision.
Q3: What role do you personally play in setting and steering the sustainability agenda within the company?
As President, my role extends beyond setting the vision to implementing robust accountability frameworks that ensure our commitments are fulfilled. I serve as the chair of both the Sustainability and Ethical Management Committee and the Treating Customers Fairly Committee, personally overseeing the execution of our sustainability strategies.
To translate vision into action, I mandated the integration of ESG metrics into senior executive KPIs. For instance, my own 2025 KPIs include growing green and sustainable investments by 15% from 2022 levels and meeting our operational carbon reduction targets.
I believe that mechanisms and the participation of leaders would inspire the entire organisation to translate sustainability commitments into daily action.
Q4: Many CEOs now see sustainability as a competitive advantage. How has it shaped innovation, market growth, or stakeholder trust for your organisation?
At KGI Life, we view sustainability not just as a responsibility, but as a strategic growth driver. By embedding ESG into our business model, we have established a competitive edge in both innovation and trust.
On the innovation front, we are promoting green operations through digital transformation. By rolling out remote insurance applications via mobile devices and e-policies, we have significantly reduced carbon emissions across the service lifecycle. In 2024 alone, we saved over 10 million sheets of paper and avoided 183 metric tonnes of carbon emissions, while simultaneously streamlining underwriting and enhancing operational efficiency.
On the investment side, we pursue responsible investments that support sustainable industries while delivering stable, long-term returns for our shareholders—demonstrating that sustainability and profitability are mutually reinforcing. Ultimately, sustainability has been key to winning the trust of customers and investors in a rapidly changing market.
Q5: Why do you believe sustainability reporting is vital for corporate leadership today?
Sustainability reports serve as a critical bridge between corporations and society. Through transparent reporting, we build “trust capital”. At KGI Life, we adopt globally recognised frameworks such as GRI and SASB, and engage third-party assurance providers to enhance credibility.
More than simply showcasing results, our goal is to be transparent about the challenges we face. Honesty and transparency are essential to building a trustworthy brand in the long run. We also view reporting as a driver of transformation. Companies must engage in rigorous self-assessment to generate these reports. For instance, the TCFD framework enables us to assess how climate risks impact our assets and use those insights to optimise our investment portfolio. Each metric in the report serves as a benchmark, driving our continuous improvement towards decarbonisation and digital transformation.
Q6: How do you ensure that sustainability performance remains a board-level priority amid other business pressures?
At KGI Life, we have institutionalised sustainability as a central board priority. We established Board Performance Evaluation Guidelines that include annual assessments of the Board, individual directors (comprising both self and peer evaluations), and each functional committee.
The guidelines explicitly include three ESG evaluation criteria: whether board members understand key industry-relevant ESG issues; whether the board continuously supports corporate sustainability and guides ESG strategy execution; and whether the board regularly reviews ESG progress to ensure active participation in sustainable development and build a culture of rigorous governance. Additionally, 80% of the members of the Sustainability and Ethical Management Committee are independent directors, ensuring diverse perspectives and prioritising long-term value over short-term gains.
Q7: Could you share an example of a major decision or investment where sustainability considerations played a decisive role?
One of our most pivotal decisions was proactively transitioning our investment portfolio towards low-carbon assets. Traditionally, life insurers have prioritised liquid assets like government bonds and blue-chip stocks. Conversely, investing in solar or offshore wind projects requires specialised expertise and involves lower liquidity.
We chose to move forward because supporting the energy transition is both a tangible contribution to Taiwan’s sustainability and a source of stable long-term returns. By the end of 2024, KGI Life had invested NT$1.65 billion in renewable energy projects—an increase of 9.5% over the previous year. These investments contribute to a combined installed capacity of 1,142 MW, representing a 47.5% year-on-year increase.
Q8: As regulatory frameworks such as ISSB gain traction, how do you view their impact on Asian businesses?
The ISSB’s IFRS S1 and S2 standards offer a consistent methodology to harmonise various requirements into a global “financial language”. This presents a challenge that, once met, will enable Asian businesses to attract international capital. These stringent disclosure requirements enhance corporate transparency and ensure that sustainability claims align with actual actions, winning trust from stakeholders.
Viewing this as an opportunity to enhance our risk resilience, KGI Life has been gradually aligning with IFRS S1 and S2 since early 2025. We have adopted the PCAF methodology to conduct high-coverage carbon accounting for our investment portfolios, aligning with ISSB S2’s climate resilience standards and enabling data-driven climate risk management. We also aim to exercise influence by engaging with our investees to improve the quality of their disclosures.
Q9: Looking ahead, what are your top three sustainability priorities for the next three years?
The next three years are a critical period for KGI Life to accelerate towards real, impactful sustainability. Our top three priorities are:
• Deepening Climate Action: We are entering the critical phase of decarbonisation. In addition to pursuing our SBTi-aligned targets, we will actively engage with high-emission investees and increase our green and sustainable investment ratio to support industries in the low-carbon transition.
• Building an Ecosystem for Population Ageing: In response to Taiwan’s ageing population, we aim to evolve from a passive claims processor into an active enabler of health. For example, we plan to integrate medical and long-term care resources so that insurance shifts from post-incident compensation to preventative care.
• Empowering Green Talent: Talent is the catalyst for transformation. We are continuing our “ESG Capacity Building” programme to embed sustainability literacy into employee training and evaluation. By the end of 2025, over 50% of our employees will have passed government-organised sustainable finance tests. We aim to build a team that deeply understands climate risk and green finance.
Q10: What message would you like to send to your peers and the wider business community about responsible leadership in this decisive decade for climate and sustainability?
In this decisive decade, my message to the business community is clear: “Sustainability is not a solo sprint for individual excellence—it is a collective marathon for survival.” No business can remain untouched by the systemic risks of climate change.
I strongly encourage my peers to set ambitious sustainability goals and commit to future generations. I believe that AI and big data will reshape the insurance value chain and catalyse product innovation. In the future, life insurance companies will not only drive the net-zero transition and healthy living but also act as pivotal enablers of social inclusion. Staying true to our “We Share, We Link” philosophy, KGI Life will continue to support our customers and create sustainable value for society.
