Climate Changes and Cathay’s Response
athay FHC places great emphasis on its responsibility to the environment, and has combined such responsibility with its core business and operations. We became one of the first signatories to the CDP in 2012, and continue to respond to the CDP's questionnaires. Following the Financial Stability Board’s (FSB) announcement of the TCFD Recommendations in 2017, in response to climate change, Cathay FHC signed a Commitment to implement the recommendations of the Task Force on Climate-related Financial Disclosures, and established a task force
for climate-related financial disclosures in 2018 to manage our financial impact from climate change and formulate responsive strategies. In the same year, we were granted “Management” level by the CDP. We will continue to track and thoroughly manage our natural capital and financial business in response to carbon management in 2019.
Cathay's Response to the TCFD Recommended Framework
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.
Low-carbon investments and lending
Cathay FHC actively engages in low-carbon investments and lending in the six following sectors that we have defined: energy (excluding nuclear power and fossil fuel), architecture, waste recycling, transport, (high efficiency) industry, and finance (e.g. green bonds).
The top three fields in which our low-carbon investments and lending increased the most (compared with the same period last year) are as follows:
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 Management Committee and Cathay FHC Group Environment and Energy Policy in 2017 to manage its natural capital. The President offers guidance on related operations and periodically convenes meetings on energy and environmental management to supervise policy implementation.
Furthermore, Cathay FHC and all of its subsidiaries implemented both the ISO 14001 Environmental Management System and ISO 50001 Energy Management System, and integrated management goals with GHG emission reduction goals.
We purchased the first batch of Taiwan Renewable Energy Certificates (T-RECs) in 2017 in response to the government’s promotion of renewable energy use. We continued to purchase T-RECs in 2018 and purchased 77 T-RECs as a group. Using environmentally friendly equipment, Cathay Life’s Zhongxiao Store and KOKO Lab, through which CUB provides digital services, are examples of business locations that operate entirely on green energy, offering customers a brand new green experience.
We are also dedicated to water conservation and waste reduction, and achieve our environmental performance goals through environmental action plans formulated each year. Our main office buildings have dual-flush toilets and automatic sensors for water conservation, and our new building (Minsheng Jianguo Building) has a rainwater harvesting system. We are gradually replacing old lights with energy-saving lights, and are also replacing old elevators and air conditioners to achieve higher energy efficiency. Hence, our electricity consumption decreases annually. In addition, CUB was recognized with a Bronze Award from the ROC Enterprise Environmental Protection Award.
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.