Responsible Investment and Lending
Cathay fully recognized the impact financial sector can bring through responsible investment/lending. Cathay has established a Responsible Investment Working Group in 2014, which supervises Cathay FHC's responsible investment strategies and sets up policies. Cathay Life and Cathay SITE have also respectively established their Responsible Investment Task Force, which comprises the front/mid/back-offices of the investment team. The task force continuously learns the best international practices, trends and methodologies to establish action plans to refine and improve the ESG integration process. Cathay Life has established responsible investment department to further improve the responsible investment management. CUB established the Sustainable Finance Loan Management Section in 2016, which is responsible for reviewing EPs-related cases, and has renamed it as the Sustainable Finance Section in 2017. The Section is now the dedicated unit in charge of promoting corporate sustainability and ESG risks management within the bank.
Cathay is active in its exchanges with external industrial, governmental and academic institutions and invited foreign experts to bring ESG analysis education and training at least twice a year for investment team to learn global trends and RI practices. In addition, we also provided training materials for EPs project financing management regulations and ESG Regulations for Corporate Loans, which are updated on management demand.
Sufficient ESG information and data is the basis for strong ESG management. Cathay thus purchased access to several international ESG databases to provide teams with comprehensive ESG data and analysis information, and created related tools to provide teams with a comprehensive ESG investment environment.
The “Equator Principles” (EPs) is an international risk management framework for financial industry. It categorises risks in large project finance based on their potential environmental and social impact and initiates varying levels of review for different categories. It requires lenders to include human rights and engagement mechanisms, establish an environmental and social management system, and establish action plans in accordance with risks disclosed in environmental assessments. These items are listed in credit contracts for compliance and execution. Banks shall implement continuous monitoring of project construction and operations after funding loans and regularly disclose information on the implementation status.
Cathay United Bank Equator Principles Disclosure Website
After becoming the first EPFI bank in Taiwan, CUB announced its voluntary adoption of the United Nations Principles for Responsible Banking (PRB) in December 2018, and became the first PRB bank in Taiwan. CUB established a task force in early 2019 to inventory its core competencies and plan to gradually implement the six major PRB principles: “alignment, impact and target setting, clients and customers, stakeholders, governance and culture, and transparency and accountability”. Through the implementation of the aforementioned principles, the Bank will integrate its own business strategies with the UN Sustainable Development Goals (SDGs) and the Paris Agreement.
Cathay United Bank declared its voluntary compliance with the United Nations' Principles for Responsible Banking (PRB) at the end of 2018 to line up with international sustainability frameworks and set an example for the industry. CUB became the first bank in Taiwan to obtain PRB compliance assurance from a CPA firm in February 2021, and takes concrete actions to fulfill the corporate social responsibility of a financial institution. CUB continues to promote the PRB and maximize financial influence based on its banking core competencies to facilitate the prosperity of companies, society, and the environment.
CUB Progress Report on the Implementation of the PRB
Cathay United Bank leverages its financial influence to motivate partners in the value chain to jointly bring about economic, social, and environmental benefits, foster sustainable development of the environment and society, fulfill corporate social responsibilities, and make active contributions to sustainability.
《Cathay United Bank ESG Management of Lending》
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