Nan Shan Life believes that an insurance company is not merely a profit-driven business entity but must also shoulder responsibilities for individual and family protection, social stability, and environmental stewardship. Sustainable corporate operations require a balanced approach to the long-term development of the company, the environment, and society—this is the core philosophy and guiding principle behind Nan Shan Life's promotion of ESG.
Governance Practices
Board of Directors Structure
The Board of Directors is the highest governance body at Nan Shan Life and is responsible for overseeing overall management and operational performance. The 41st Board comprises 14 seats, including 5 independent directors. As of March 31, 2025, there are 13 directors in office, with independent directors accounting for approximately 31% of the Board. To ensure that independent directors exercise their duties objectively and maintain independence, none of the currently appointed independent directors have served for more than nine consecutive years.
The professional expertise of the 41st Board members
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Note 1: Directors are defined under DJSI.
Note 2: External Directors Meet Independence Criteria.
The independence of external directors is determined based on the definition of independent directors under the Dow Jones Sustainability Indices (DJSI). Directors must meet at least 4 of the following 9 criteria, including at least 2 from the first 3 items:
(For standards under local regulations, please refer to the Company’s 2024 Annual Report)
(1).The director has not served as a senior executive of the Company within the past year.
(2).Neither the director nor their family members have received payments exceeding USD 60,000 from the Company or any of its subsidiaries in the current year or past year, with exceptions permitted under SEC Rule 4200.
(3).The director is not a family member of a senior executive of the Company or any of its subsidiaries.
(4).The director is not an advisor to the Company or its management team, and has no conflicting interest with any such advisors.
(5).The director has no material interest in any major customer or supplier of the Company.
(6).The director has no service contract relationship with any other business or its management.
(7).The director has no conflicting interest with any nonprofit organization that receives significant donations from the Company.
(8).The director has not been employed by the Company’s external auditing firm or served as a partner of such firm within the past year.
(9).The director has no conflict of interest that could affect the independent functioning of the Board.
Note 2: External Directors Meet Independence Criteria.
The independence of external directors is determined based on the definition of independent directors under the Dow Jones Sustainability Indices (DJSI). Directors must meet at least 4 of the following 9 criteria, including at least 2 from the first 3 items:
(For standards under local regulations, please refer to the Company’s 2024 Annual Report)
(1).The director has not served as a senior executive of the Company within the past year.
(2).Neither the director nor their family members have received payments exceeding USD 60,000 from the Company or any of its subsidiaries in the current year or past year, with exceptions permitted under SEC Rule 4200.
(3).The director is not a family member of a senior executive of the Company or any of its subsidiaries.
(4).The director is not an advisor to the Company or its management team, and has no conflicting interest with any such advisors.
(5).The director has no material interest in any major customer or supplier of the Company.
(6).The director has no service contract relationship with any other business or its management.
(7).The director has no conflicting interest with any nonprofit organization that receives significant donations from the Company.
(8).The director has not been employed by the Company’s external auditing firm or served as a partner of such firm within the past year.
(9).The director has no conflict of interest that could affect the independent functioning of the Board.
Director Training and Performance Evaluation
To enhance the sustainable governance function of the Board, members of the Board continuously participate in external professional courses and seminars. In 2024, the total number of director training hours reached 197 hours, with an average of 14 hours per director. Training topics covered risk management, corporate governance, sustainable business development, sustainable finance, anti-money laundering and counter-terrorism financing, the impact of IFRS 17 on insurance operations, fair treatment of customers, gender equality obligations, and more. All 14 directors received training and communication on ethical corporate management, achieving a 100% completion rate.
Director and Executive Remuneration Policy
To implement sound corporate governance and establish a robust remuneration system for directors and managers, the Company has established a Remuneration Committee. This Committee assists the Board in evaluating and supervising the Company’s overall compensation policies and in reviewing and approving remuneration packages for directors and executives.
In 2024, Nan Shan Life aligned the President’s performance with sustainability metrics including “Scope 1 and 2 carbon emissions reduction targets,” “renewable energy usage ratio targets,” and “results of sustainability-related assessments.” These efforts reinforce environmental management and corporate governance, bolstering long-term resilience and competitiveness.
In 2024, Nan Shan Life aligned the President’s performance with sustainability metrics including “Scope 1 and 2 carbon emissions reduction targets,” “renewable energy usage ratio targets,” and “results of sustainability-related assessments.” These efforts reinforce environmental management and corporate governance, bolstering long-term resilience and competitiveness.
Functional Committees
To strengthen the supervisory function of the Board of Directors, Nan Shan Life has established five functional committees under the Board: the Audit Committee, Remuneration Committee, Treating Customers Fairly Promotion Committee, Risk Management Committee, and Corporate Sustainability Committee.
