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.

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 85% 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 believes that finance and sustainable development are both important considerations when investing, developing, and managing commercial real estate. As such, the company committed in 2017 to comply with green building standards and acquire Green Building Labels (TW) for any new buildings developed or invested by Cathay FHC. The company estimates that, by 2030, 45% of bank branches will be renovated to comply with environmental protection standards. We are committed to developing a low-carbon real estate ecosystem. Cathay intends to roll out the "Green Real Estate Rental Program" to all proprietary buildings in Taiwan by 2030. This will allow Cathay to offer renewable energy to SMEs in these buildings and propel us into energy transition.

Obtained ISO 14067 - Carbon Footprint of Products for main financial products and services and leveraged service digitalization to lower carbon emissions across product's life cycle.

Cathay Life: Completed the 2021 Carbon Footprint Verification for Life Insurance Services and identified carbon footprints of each life insurance policy as 2.58 kgCO2e, which is the lowest among similar effective carbon-labeled products, represents a 27% reduction from the base year of 2016, and once again eligible for Ministry of Environment's Carbon Reduction Label.

CUB: In 2021, CUB completed ISO 14067: Carbon Footprint Verification for their unsecured consumer loans and became the first bank in Taiwan to secure Carbon Label and Carbon Reduction Label from the Ministry of Environment for this service; in 2023, they received ISO 14067: Carbon Footprint Verification for "Small ATM Deposits/Payments" and "Residential Mortgage Services," once again becoming the first bank in Taiwan to receive both the Carbon Label and Carbon Reduction Label for its "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. Each property insurance policy has a carbon footprint of 1.8 kgCO2e. With consistent efforts to digitalize services and work flows, Cathay Century has reduced carbon emissions by 10.3% from the base year of 2018 and once again received a Carbon Reduction Label in 2021.

Cathay FHC rigorously controls sustainability issues related to procurement processes. Currently, Cathay FHC works with over 1,000 service providers, equipment suppliers, and construction subcontractors. Their services and products enable Cathay's operations, but Cathay recognizes our responsibilities to reduce supplier impact on environmental sustainability as they provide products or services to any Cathay entities. As the first financial institution around the world to incorporate ISO 20400 - Sustainable Procurement Guidance, Cathay manages the supply chain in compliance with the Sustainable Procurement Guidelines, has developed the Cathay FHC Sustainable Procurement Policy, and ensured all Cathay suppliers have signed the Cathay Financial Holdings Statement of Sustainability Values

Sustainable Supplier Management