As the leader of sustainable finance in Taiwan, Cathay continues to direct its efforts into TCFD recommendations. Besides integrating climate risks into the current risk management framework, we are also improving our scenario analysis and have actively promoted green finance, which has strengthened our resilience, allowing us to jointly face future climate challenges together with all stakeholders.
Strengthen the group's climate-related financial disclosure
In 2022, Cathay FHC published its first TCFD Report. The TCFD section in its Sustainability Report was also listed in the TCFD Status Reports as an outstanding case study in risk management, a first in Taiwan's financial sector.
Engaging Biodiversity Initiatives
Cathay United Bank became the Equator Principles signatory in Taiwan in 2015, integrating biodiversity indicators into project finance management. Cathay Financial Holdings participated The Taskforce on Nature-related Financial Disclosures (TNFD) in August 2022. We also became the first Taiwan financial institution to join Partnership for Biodiversity Accounting Financials (PBAF) in September 2022.
Cathay FHC's Climate Governance Framework
An effective climate governance framework is of utmost importance to a company in controlling risks, seizing opportunities, and fulfilling its responsibilities to stakeholders. Cathay's Board of Directors supervise and make decisions regarding climate-related issues. We have appointed a Chief Climate Officer responsible for coordinating and communicating the group’s climate-related matters and serving as an advisory role for the group's climate-related strategies.
Climate and Nature Scenario Analysis
Cathay is collaborating with local and global research institutions to develop financial quantitative analysis research to gain better insight into the financial impact of climate change. The scenario analysis delves into Cathay's core businesses and value chains to validate the methodology for assessing strategic resilience and formulating response measures. Cathay refers to climate scenarios published by international institutions, including the Intergovernmental Panel on Climate Change (IPCC), the International Energy Agency (IEA), and the Network of Central Banks and Supervisors for Greening the Financial System (NGFS), and has incorporated the Nationally Determined Contributions (NDCs) into the assessment process. The scenario analysis does not consider uncertainties related to mid- and long-term policy changes.
