Cathay Financial Holdings, Taiwan’s first financial institution to join RE100

Cathay Financial Holdings (Cathay FHC), one of Asia’s leading financial services organizations, has joined the RE100 initiative, pledging to use 100% renewable energy in its global operations by 2050.

Cathay FHC Sends Important Message to Accelerate Market Shift to Renewable Energy and Reduced GHG Emissions in Asia

As a business leader, it is important to lead by example.

— Chang-Ken Lee, President of Cathay FHC

TAIPEI, TAIWAN, April 28, 2022 / — Cathay Financial Holdings (Cathay FHC), one of Asia’s leading financial services organizations, has joined the RE100 initiative, pledging to use 100% renewable energy in its global operations by 2050.

“In line with our UN Sustainable Development Goals and zero emissions efforts, this RE100 commitment is expected to initiate active collaborations with various market players,” said Cathay FHC President Chang-Ken Lee. “We are happy to engage with other businesses to support the transition to a low-carbon economy.”

Mr. Lee counts renewable energy use and reduced carbon emissions among Cathay FHC’s key performance indicators, aiming to align business operations as closely as possible with the RE100 principles. Continuing to work toward its green power goals, Cathay FHC continued to invest in renewable energy in addition to purchasing renewable energy certificates and entering into power purchase agreements. Additionally, by engaging key decision makers from a variety of sectors throughout the green energy transformation process, Cathay FHC hopes to strengthen collective progress not only among internal stakeholders, but also across the renewable energy and energy industry. other sectors of activity.

Cathay FHC’s RE100 goal is fully supported by its affiliates. “As a business leader, it’s important to lead by example,” Lee explained. “We have shown our strong commitment by bringing together the entire Cathay value chain on this.”

In his welcome message to Cathay FHC, Sam Kimmins, Head of RE100, said, “We are delighted to welcome Cathay Financial Holdings to RE100. In committing to 100% renewable electricity by 2050, Cathay Financial Holdings joins more than 350 of the world’s largest companies committed to driving market change. It sends a powerful message that renewable electricity is a good business decision, and we encourage others to follow suit.

For years, Cathay FHC has promoted climate change awareness across its operations. After establishing the Responsible Investment Task Force – the first such task force in a Taiwanese financial institution – Cathay FHC has been investing in renewable energy, developing green insurance and issuing green bonds since 2014.

Invest in renewable energies
Cathay Life, the largest subsidiary of Cathay FHC, has connected companies like AU Optronics, Sino-American Silicon Products and Xinritai Co., Ltd., with solar energy service providers for joint investment opportunities . This model promotes the development of solar clusters while serving as an example for other insurers. In 2020, Cathay United Bank (CUB), a subsidiary of Cathay FHC, financed over NT$23.3 billion in renewable energy, including low-carbon investments and loans to green energy companies. CUB has a distinguished history in energy investments, having built a pioneering power plant appraisal model in 2011 to provide guidelines for relevant financing appraisals. Today, CUB is one of the largest banks providing solar energy financing in Taiwan. By the end of 2021, the CUB had financed more than 2,400 domestic and foreign solar power plants, with a total installed capacity of 705 MW, reducing CO2 emissions by nearly 460,000 metric tons.

Develop green insurance products
Cathay Century, the Cathay FHC subsidiary focused on property and casualty insurance, offers construction insurance tailored to the risks faced in the renewable energy sector. Since 2010, Cathay Century has provided construction insurance for hydropower plants, solar power generation equipment and offshore wind projects. In 2021, Cathay Century’s coverage in the renewable energy sector was valued at NT$148.38 billion. In 2020, the Cathay MSCI Taiwan ESG Sustainability High Dividend Yield ETF, issued by Cathay SITE, was launched, setting records in the Taiwanese stock market for the highest IPO value ever and the fastest growth. quick to NT$10 billion. By the end of 2021, the ETF had reached NT$35 billion in AUM.

Green bonds and support for green businesses
At the same time, Cathay Securities actively helps environmentally conscious and green energy companies raise capital. In 2021, Cathay Securities provided its services to Power Master II Holdings Co., Ltd. (6839) for the company’s IPO. Cathay Securities also served as an underwriter for the convertible corporate bonds issued by Anji Technology Co., Ltd., and helped the company raise NT$288 million in capital. Additionally, Cathay Securities has provided bond underwriting for several leading companies, including Chailease Holding, Taiwan Power Company and TSMC.

Cathay FHC and its subsidiaries are the only Taiwanese financial institution to actively participate in various international climate engagement initiatives, such as Climate Action 100+ and CDP’s non-disclosure campaign. In January 2022, the Investor Agenda published 10 case studies highlighting key best practices for investor climate action plans, which featured Cathay FHC as the only Asian asset owner to be included.

With the announcement of the RE100, Cathay FHC has committed to leading by example while striving to achieve its net zero goals. Cathay FHC is dedicated to consistently applying its core ESG competencies to advance responsible investing and climate change strategies. The company further strives to engage with like-minded peer companies that are moving towards low-carbon goals.

Iris Wu
Cathay Financial Holdings
+886 2 2708 7698#7745
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