CUB is the first bank in Taiwan to become a signatory to the Equator Principles, and adopted the Principles for Responsible Banking (PRB) on its own initiative, taking concrete actions to fulfill its corporate social responsibility as a financial institution. Cathay is the leading brand in green finance in the Asia Pacific, and fully utilizes its core competencies to respond to global climate risk, working together with the industrial sector and customers in developing green energy and creating a sustainable homeland.
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●Low-Carbon Investing / Lending: Cathay utilized its experience from participating in the GIC Low Carbon Investment Registry (LCI Registry) and established the Group's definition of the low carbon industry in 2017, including energy (excluding nuclear power and fossil fuel), architecture, waste recycling, transportation, (high efficiency) industry, and finance (e.g. green bonds). Total low carbon investing/lending amount reached NT$165.2 billion in 2019.
●Infrastructure Investing / Lending: Cathay established the scope of infrastructure after referencing government regulations in 2017, including: transportation, public facilities, social housing, and environmental remediation facilities. Total infrastructure investing/lending amount reached NT$658.6 billion in 2019.
Solar Power Financing
●CUB has supported Taiwan’s move to renewable energy since as early as 2011 when CUB began to finance solar power projects across the island.
●CUB has formally implemented the lending management mechanism of the EPs, established the first project finance specialized team in the domestic financial industry, and built a dedicated power plant evaluation model for financing assessment since 2015.
●In 2019, CUB has financed 118 solar sites in Taiwan with a total installed capacity of 39,567.07 kW. As of the end of 2019, CUB has provided to over 2,000 sites with a total of 517MW solar PV power capacity, reducing CO2 emissions for more than 300 thousand metric tons, which is roughly 780 times the carbon absorption of Da'an Forest Park.
Note 1: Taiwan Power Company – Each 1,000 kW of installed capacity of solar panels in Taiwan on average generated 1,101 kWh in 2019; according to the household electricity consumption volume announced by Taiwan Power Company in 2018, the average monthly electricity consumption per household is 292 kWh.
Note 2: According to the electricity emission factor announced by the Bureau of Energy in 2018, approximately 0.533 kg of CO2 is emitted per kWh. Calculated based on Bureau of Energy, MOEA, data which indicates that Da’an Forest Park absorbed 389 metric tons of CO2 in 2011.
Offshore Wind Farm Financing
●Formosa I Offshore Wind Project (the first offshore wind-power financing project in Taiwan): CUB served as the Mandated Lead Arranger for the Phase I syndicated loan and continued to participate in the Phase II financing (totaling 22 turbines). This offshore wind farm has a total installed capacity of 128MW and is expected to generate enough electricity for 380,000 households each year.
●Yunlin Offshore Wind Power Project: CUB acted as the Mandated Lead Arranger, Documentation Bank, LC Issuing Bank, Onshore Security Agent, Offshore Commercial Facility Agent and Guarantee Facilities Agent for the syndicated loan in 2019. The project has a total of 80 wind turbines and is the largest offshore wind farm in the Asia Pacific to date.
●The first green loan revolving facility in Taiwan Market: CUB together with two other banks secured the mandate with Ørsted and co-arranged a 5-year NT$25 billion green loan revolving facility in 2019 to provide capital for the “Greater Changhua Offshore Wind Power Project.”
●Formosa II Offshore Wind Power Project: CUB served as Guarantee Facilities Agent, actively participates in the offshore wind transaction in different roles and methods, contributing to Taiwan’s environmental protection and sustainable development.
●As of the end of 2019, CUB accumulated total installed capacity for offshore wind is 768MW, reducing CO2 emissions by approximately 1.30 million metric tons, which is roughly 3,500 times the carbon absorption of Da'an Forest Park.
Note : According to operational data from 2 offshore wind turbines that have begun commercial operation, the average capacity factor from May to December 2017 was 23%, 28%, 11%, 34%, 14%, 66%, 62%, and 68%, respectively. The average capacity factor of 38% is used, and power generation is calculated using the formula “actual power generation = installed capacity x capacity factor” (https://www.moea.gov.tw/mns/populace/news/News.aspx?kind=1&menu_id=40&news_id=80260).
Renewable Energy Contractors' & Erection All Risks Insurance
●Cathay Century provides construction insurance products suitable for the green energy industry's risks, and has been undertaking construction insurance for hydroelectric power plants and solar power generation equipment since 2010.
●Offshore wind farms entail high construction risks due to natural disasters and technical challenges. Cathay Century became the first property insurance company in Taiwan to utilize its risk assessment and loss prevention expertise to provide offshore wind turbine insurance for the CUB offshore wind power syndicated loan in 2016.
●Cathay Century provided insurance for hydroelectric power plants, solar power plants, and offshore wind farms and equipment in the amount of NT$91.32 billion in 2019.