Pioneer in Green Finance
Cathay not only carries out full examinations and inventories on its internal business operation, but also upholds its sustainability vision of “being a leader in green finance, creating a sustainable future”. Cathay actively exercises its right of financial asset allocation to tangibly ameliorate the risks brought by climate change, collaborates with its customers through green cash flows, and acts as a leader in the industry to achieve the goal of net-zero emissions, so as to become a pioneer in the green energy industry in Taiwan.
| Green Products and Services |
2020
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2021
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2022
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Cumulative global financing for installed solar power station capacity (MW)
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574
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758
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889
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Cumulative financing for installed offshore wind energy capacity (MW)
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768
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1,373
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1,373
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Insured amount under Renewable Energy Contractors' (hydropower, solar power, and wind energy) & Erection All Risks Insurance (NT$100M)(Note 1)
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1,172
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1,488
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1,830
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Cumulative premium income from Green Vehicle Insurance (NT$10K)
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33,754
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46,207
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87,895
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Green Vehicle Insurance (cases)
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18,957
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28,122
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54,593
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Cumulative premium income from bicycle insurance (NT$10K)
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1,269
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2,000
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2,563
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Bicycle insurance (cases)
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6,128
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8,261
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10,093
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Cumulative insured amount under Public Bicycle Accident Insurance (NT$10K)
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1,292
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1,937
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2,792
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Cumulative insured cases under Public Bicycle Accident Insurance (10K ppl)
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4,760
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7,757
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11,820
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Note 1: No hydropower-related investments or insurance in 2022
Percentage of Renewable Energy Loans
CUB reached its 2025 goal for renewable energy loans to account for 85% of loans to the electricity generation industry in 2022.
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As of Dec. 31, 2022
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Unit
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2019
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2020
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2021
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2022
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Percentage of available credits for renewable energies to the electricity generation industry
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%
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69.23
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76.08
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77.53
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87.56
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Promote Solar Power Industry Clusters
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Promote Solar Power Industry Clusters
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Cathay Life's venture into renewable energies revolves around solar power and was a three-step process: Cathay Life first invested, then collaborated (in a joint venture), and finally established a solar power subsidiary to build up its electricity generation assets. In 2014, Cathay Life started investing in solar power plants. In 2016, the company started working with critical raw material suppliers along the solar power value chain to develop solar power plants through joint ventures, promoting solar power industry clusters. To capitalize on opportunities presented by energy transition policies, Cathay Life leveraged its years of experience in the solar power industry to vertically integrate resources and assemble a professional management team. In 2022, Cathay Life became heavily involved in Cathay Power's merger, increasing its equity ownership of Cathay Power to 70% and becoming the first life insurance company in Taiwan to establish a solar power subsidiary. As of 2022, Cathay Life has invested a total of NT$4.07 billion, and the grid-connected installed capacity is now at 329.7 MW.In 2012, CUB became the first FI to finance a solar power station in Taiwan. In 2022, CUB approved loans for126 solar power stations with a total installed capacity of 131 MW. As of the end of 2022, loans have been approved for 2,600 solar power stations in Taiwan and abroad, with a total installed capacity of 889 MW and annual carbon reduction benefits of 558,000 metric tons. Note
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Offshore Wind Energy
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In 2016, CUB became the first FI to provide a syndicated loan for offshore wind farm projects in compliance with the Equator Principles (EPs) in Taiwan and helped finance the 640 MW Yunlin Offshore Wind Farm Project and 605 MW Greater Changhua Offshore Wind Farm Holdco Finance Project, led by the world's largest offshore wind developer - Ørsted A/S - to help Taiwan build infrastructure for renewable energies.
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Note: Calculated based on Taiwan's average solar PV capacity factor in 2021 announced by the Taiwan Power Company and electricity emission factor of 0.509kg CO2/kWh in 2021 announced by the Bureau of Energy.
Green Deposit
In July 2022, CUB launched the Green Time Deposit Program to support the government's Green Finance Action Plan 2.0 & 3.0. As of the end of 2022, over 30 companies across transportation, electronics, chemical engineering, retail, machine tool, and construction industries have carried out the Green Time Deposit Program. Companies such as EVERGREEN MARINE CORP.(TAIWAN)LTD., TECO ELECTRIC & MACHINERY CO., LTD, UNITED INTEGRATED SERVICES CO., LTD., ADATA TECHNOLOGY CO., LTD., ABICO AVY CO., LTD., and UBRIGHT OPTRONICS COPORATION have shown support for the program. The program will undertake over NT$10 billion, and related funds from green savings have been invested in the development of renewable energy industries such as financing solar power plants, wind farms, and fishery and electricity symbiosis. In compliance with international norms of green finance, the program works with third-party advisors to evaluate the feasibility and effectiveness of green deposits investment plans and provide assurance reports on investment plans and the use of funds to ensure related funds are used for green lending purposes.
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Achievements of the Green Time Deposit Program in 2022
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Carried out by over 30 companies
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Undertook NT$10 billion
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Commissioned third-party advisors to evaluate the feasibility and effectiveness of green deposit investment plans and provide assurance reports on investment plans and the use of funds
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Sustainability-Linked Loan
CUB is actively promoting sustainable finance across various markets and industries. As of the end of 2022, CUB had approved more than 30 SLLs in Taiwan, Hong Kong, the Philippines, Singapore, and Australia, covering industries such as electronic components, construction materials, real estate, textile, F&B, medical equipment, leasing, public utility, etc. Total approved facility amount is more than NT$23 billion. An SLL is a loan that incentivizes a borrower to improve its sustainability or environmental, social, and governance (ESG) performance, and KPIs must be chosen carefully in order to monitor ESG performance that is relevant and material to the industry of the borrower.
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Accomplishment of in Sustainability-Linked Loans in 2022
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Apr.
CUB signed a bilateral SLL with Siliconware Precision Industries (SPIL), a top IC packaging and testing house in Taiwan. The approved facility amount is US$200 million or NT$ 6 billion, the highest CUB approved SLL facility to a single borrower.
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Jul.
Cathay United Bank Manila Branch (Philippines) signed a bilateral SLL with Prime Asset Ventures, Inc. (PAVI), a subsidiary of Villar Group in Philippines. Use of proceeds is for PAVI’s water company, PrimeWater. The approved facility amount is Peso 1.25 billion or NT$675 million, the first ever SLL in the Philippine market.
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Dec.
Cathay United Bank Hong Kong Branch received two awards - "Outstanding Award for Green and Sustainable Loan Structuring Advisor" and "Pioneering Organization in Climate Disclosure Planning" from "Hong Kong Green and Sustainable Finance Awards" organized by the Hong Kong Quality Assurance Agency (HKQAA).
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