Climate Changes and Cathay’s Response
As a global citizen, Cathay FHC continues to keep abreast with international trends in sustainable development and became a CDP signatory in 2012. Cathay FHC went on to sign the CDP Water Disclosure Program Forest Footprint Disclosure Program Commit to responsible corporate engagement in climate policy and Commit to implement the recommendations of the Task Force on Climate related Financial Disclosures. We became the only company in Taiwan to participate in the CDP Non-discloser Engagement Campaign in 2017 to encourage companies response to CDP. Our subsidiaries Cathay Life and Cathay SITE became the only two financial institutions in Taiwan to participate in Climate Action 100+, engaging with 100 of the world's largest corporate greenhouse gas emitters to establish mechanism managing climate change and disclose relating information.
Understanding climate risks and opportunities will help the transformation of financial institutions and drive the development of a low-carbon economy. The Financial Stability Board (FSB) established the Task Force on Climate-Related Financial Disclosures (TCFD) and announced the Recommendations of the Task Force on Climate-related Financial Disclosures, which provided best practices for climate-related financial disclosures. Cathay FHC has actively participated in various green initiatives over the years. Cathay FHC adopted the TCFD in 2017 to strengthen disclosures of climate-related risks and opportunities.
In 2017, Cathay began building the climate risk and opportunity matrix as basis for scenario analysis and improving climate strategies. The most significant short-term and mid-term risks that were identified include the physical risk of typhoons and temperature change, which can damage renewable energy facilities that we invest in. Long-term risks include the pressure on financial product and service transformation brought by the trend of a low-carbon economy that seeks to restrict global temperature rise within 2ºC.
Pioneer in Green Finance
Environmental issues once again became the greatest concern to experts around the world according to the Global Risks Report 2018 issued by the WEF. As environmental risks continue to increase, the development of renewable energy is a key step we must take to respond to the risk of climate change. The World Energy Outlook 2017 issued by the International Energy Agency (IEA) expects renewable energy to surpass coal-fired power generation in 2020 and that renewable energy will account for 40% of global power generation by 2040. Cathay FHC is the number one brand in green finance and actively supports green energy development in hopes of achieving mutual prosperity for both the environment and the economy.
Cathay FHC established "the Environment and Energy Policy" as the guiding principles for the maintenance of natural resource capital. Cathay FHC adequately manages its direct effect on the environment by comprehensively adopting the ISO 14001 Environmental Management System and ISO 50001 Energy Management System. For the two ISO systems, Chang-Ken Lee, Director and President of Cathay FHC, is the top management representative and our GHG emission reduction goal is aligned with the goal for ISO 50001. Moreover, we strengthen the sustainable operation of our suppliers and have been awarded for embracing green procurement by Taipei City Government for eight years, with the amount of green procurement exceeded 470 million in 2017.
1. Coastal adoption program: Cathay hopes to preserve the environment through rising citizens' awareness of environmental protection. We began engaging the public in caring for the ocean in 2017, adopted three beaches in Miaoli Longfeng, Chiayi Budai, and Pingdong Donggang, and also invited local organizations, schools, customers, and suppliers to join us in beach cleaning; a total of 10 beach clean-ups were organized that year at which we and our partners cleaned over 1,200 kg of trash; the event achieved ISO 20121 Event Sustainability Management Systems certification.
2. Environmental Education: In order to strengthen the knowledge of environmental protection, Cathay sets up energy-saving personnel and holds environmental education lectures quarterly for energy-saving personnel from all over the group. In addition, Cathay Life Insurance also organized energy-saving workshop for staff training. Moreover, Cathay Life providing student group insurance in the 2017 academic year, thereby Cathay Life furthermore worked together with the K-12 Education Administration in organizing energy conservation and carbon reduction lectures to raise students' awareness of sustainability. Energy conservation and carbon reduction lectures are given by professional lecturers from the Society of Wilderness, and environmental protection measures are explained using the APP "Save earth" jointly developed by Cathay Life and Professor Hou Huei-Tse at the National Taiwan University of Science and Technology.