In response to climate change, Cathay United Bank has set net zero targets to reduce environmental, social and corporate governance (ESG) risks, demonstrating its unwavering commitment to environmental sustainability and to creating a positive economic, social and environmental impact.
Aside from assisting Taiwanese businesses with their energy transition, the bank has also actively engaged in green finance deals at home and overseas.
The bank’s sustainability loan balance reported a 15 percent year-on-year growth since 2022, and the amount of undertaken sustainability-linked loans (SLLs) exceeded 30 percent in the first quarter.
Photo on courtesy of Cathay United Bank
The bank has been pivotal for Asia-Pacific corporations in 18 industries, including in the Greater China region, Singapore, Malaysia, Vietnam and the Philippines in moving one step closer to decarbonization and the 2050 net zero goal.
“As a member of the Coalition of Movers and Shakers on Sustainable Finance, Cathay United Bank aspires to become the industry’s leading green finance brand. In addition to our sustainability engineering projects in Taiwan, we seek to better align ourselves with the international markets and serve as a guiding force for Asia-Pacific corporations in their net-zero transition. By focusing on creating a sustainable financial ecosystem and collaborating with our corporate partners to achieve clean energy and climate action goals, we will achieve sustainability together,” Cathay United Bank president Alan Lee said.
In an effort to encourage corporations to invest in new energy and carbon reduction opportunities, Cathay United Bank has been eager to promote ESG project financing with corporations from all over the globe and has sought to maximize the impact of sustainable finance by focusing on countries in Taiwan’s New Southbound Policy, such as the Philippines, Singapore and Vietnam.
For instance, the bank’s Manila branch made history by being the first Taiwanese bank to sign a SLL in the Philippines. The SSL, worth 1.25 billion pesos (approximately NT$675 million), was signed with PrimeAsset, a holdings company under the prominent Villar Group.
The SLL used by PrimeWater, a subsidiary of PrimeAsset, was awarded a Stevie Award last year for excellence.
Furthermore, Cathay United Bank partnered with the Asian Development Bank to complete Vietnam’s largest onshore wind farm financing project. Last year, the wind farm managed to generate more than 120 percent of its planned power generation, effectively offsetting 215,000 tonnes of carbon dioxide emissions annually and earning itself the “Renewable Energy Deal of the Year Wind” award from financial journal, The Asset. This project holds great significance for the financial industry, as it marks Taiwan’s first venture into Southeast Asia’s green finance market.
This year, the bank’s Singapore branch signed the first green trade loan contract with Apeiron Bioenergy, a leading sustainable energy company in Singapore, to help them produce renewable aviation fuel. This contract would not only improve the energy management of Singapore’s aviation transportation industry, but also reduce carbon emissions by about 80 percent. By supporting the development of sustainable aviation fuel through direct action, the bank demonstrates its resolve to achieve net zero sustainability.
As for the future, Cathay United Bank is to continue its efforts to develop sustainable finance in Taiwan and align itself more closely with international sustainability frameworks. By establishing an environmental impact control mechanism for large project finance deals, the bank can integrate the values of sustainability into its corporate credit process.
With its heart set on becoming a pioneer of sustainable finance in the Asia-Pacific, the bank aspires to leverage its financial influence to provide businesses domestically and abroad, with the opportunity to achieve both financial success and sustainability.
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