Sustainable Environment

Cathay FHC believes that climate is at the core of sustainability. By spotlighting Green Energy, Green Operations, and Green Real Estate, Cathay FHC is steadily implementing its "Zero Carbon Operation Transition Plan" to achieve net zero emissions by 2050. Cathay FHC is the first financial institution from Taiwan to join RE100 and the sixth in Asia to obtain SBT approval.

The KPI of Cathay FHC and subsidiary presidents is linked to carbon reduction

To achieve Carbon emission goals, the KPI of Cathay FHC and subsidiary presidents is linked to carbon reduction results.Also, the KPI of executive vice president levels of subsidiaries is linked to RE procurement.

First Carbon Labels of Life Insurance and property insurance Services :

Cathay Life: Completed the first Life Insurance Services Carbon Footprint Verification

CUB: The first bank in Taiwan to secure Carbon Label and Carbon Reduction Label from the Ministry of Environment for unsecured consumer loans, small ATM Deposits/Payments and Residential Mortgage Services.

Cathay Century: Established "Product Category Rules for Carbon Footprints" in 2019 and became the first and only property insurance provider to secure Carbon Labels in 2020.

Green Operation Process

Established the Green Operation Working Group.

Announced Cathay FHC's environment and energy policy.

Cathay FHC and its subsidiaries all implemented ISO 14001 Environmental Management System and ISO 50001 Energy Management System.

Cathay FHC and its subsidiaries used organization water footprint to compile their inventory.

Cathay FHC and its subsidiaries became the first financial institution in the world to implement ISO 20400 Sustainable Procurement.

Cathay Life became the first insurance company in Taiwan to obtain the carbon reduction label for its products.

In accordance with RE100, Cathay commits to use 100% renewable energy at the head office of Cathay FHC, Cathay Life, Cathay United Bank, and Cathay Century by 2025.

Cathay FHC is the first financial institution from Taiwan to join RE100 and the sixth in Asia to obtain SBT approval.

As one of the first financial institutions to participate in Taiwan’s carbon trading system, Cathay purchased high-quality carbon credits worth over USD 200,000, accounting for one-quarter of the initial trading volume.

Cathay's four headquarters buildings and 23 offices have been certified under international Carbon-neutral standards.

Achieve 100% use of renewable energy at Taiwan business locations, and 60% use of renewable energy at global business locations by 2030.

Reach net zero emissions and achieve 100% use of renewable energy at all global business locations by 2050.

Green Energy

Green Operation

Green Real Estate

Carbon Footprint of Products

Supplier Management

Environmental Data

Around 90% of carbon emissions generated by Cathay operations derive from purchased electricity. As such, the group has decided to increase renewable energy management efficiency and reduce environmental impacts through systematic management and use of renewable energies. Cathay FHC and its subsidiaries are spotlighting four areas - "Increase Use of Renewable Energies," "Deploy Energy Management Systems," "Adopt Carbon Pricing Mechanisms," and "Install Solar Panels on Proprietary Buildings" - to achieve net zero emissions by 2050.

Cathay FHC has launched three workplace strategies - Mobilize Operations, Digitalize Services, and Share Workspaces - to echo green operation concepts. The company seeks to manage the GHG emissions of products to reduce carbon footprints by digitalizating work processes and performing Life Cycle Assessments (LCA)Note on products. Cathay commits to completing carbon footprint verification for 100% of major financial products and services by 2030 and will also seek to minimize per capita water consumption and waste to reduce the company's impact on the environment.

Cathay FHC is committed to developing a low-carbon real estate ecosystem through our Green Leasing Program, which helps SME tenants access renewable energy and is set to expand in phases to all Cathay-owned buildings across Taiwan by 2030. Cathay has also committed to complying with green building standards for any renovations, operations, maintenance, design, and construction of proprietary buildings. In addition to the goal of acquiring more green building certificates, Cathay also aims to ensure 45% of bank branches comply with green retrofitting standards by 2030.

Actions

Carbon Label: ISO 14067 carbon footprint verification for main products

Digitalization for Paperless Operations: Electronic insurance policies, remote enrollment services, auditing individual printer use, installing dual screens, and digitalizing administrative processes.

2024 Achievements:

(1) Carbon Labels:

CUB: Secures Carbon Footprint Verification & Ministry of Environment Carbon Label for "Online Credit Card Application Services"

Cathay Century: Finalizes the expanded "Product Category Rules for Carbon Footprints 2.0" for property insurance services, revising declarations under the Ministry of Environment Carbon Label (which does not require declarations for specific insurance types) to thereby expand the scope of verified products

Cathay Securities: Secured ISO 14067 Carbon Footprint Verification for online services in February 2025

(2) Digitalization for Paperless Operations:

Cathay Life, CUB, Cathay Century, and Cathay Securities leveraged mobile and digitalized services as well as paperless policies internally to save 500 million sheets of paper in 2024.

Cathay FHC maintains rigorous control over sustainability issues throughout the procurement process. Cathay FHC works with over 1,000 service providers, equipment suppliers, and construction subcontractors. To reduce negative social and environmental impacts from suppliers, Cathay FHC became the first financial institution in the world to incorporate ISO 20400 Sustainable Procurement Guidance; manage the supply chain in compliance with our "Sustainable Procurement Guidelines"; and develop a "Cathay FHC Sustainable Procurement Policy." As of the end of 2024, all Cathay suppliers have signed Cathay's Declaration of Sustainability Values.

Sustainable Supplier Management