Green Finance
The risk posed by climate change demands resilience and adaptability in our responses. To actualize our sustainable development strategy, we support net-zero initiatives and direct funding towards investment in green industries.
Green Finance Products
Green Investment
The general public is increasingly concerned with economic activities and the associated risks on the environment and natural resources as global climate change intensifies, giving rise to the concept of a low-carbon economy, which is considered to play a key role in maximizing long-term economic growth. Meanwhile, green investment has also emerged as a popular theme. CDF mainly invests in green industries with its two major subsidiaries, CDIB Capital and China Life, and actively responds to government policies. The total investment in 5+2 industrial transformation planamounted to NT$156.7 billion, of which nearly 80% of the investments are in green energy technology plus circular economy.
Green Investment
The general public is increasingly concerned with economic activities and the associated risks on the environment and natural resources as global climate change intensifies, giving rise to the concept of a low-carbon economy, which is considered to play a key role in maximizing long-term economic growth. Meanwhile, green investment has also emerged as a popular theme. CDF mainly invests in green industries with its two major subsidiaries, CDIB Capital and China Life, and actively responds to government policies. The total investment in 5+2 industrial transformation planamounted to NT$156.7 billion, of which nearly 80% of the investments are in green energy technology plus circular economy.
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Green Investment (5+2 Industry)
The general public is increasingly concerned with economic activities and the associated risks on the environment and natural resources as global climate change intensifies, giving rise to the concept of a low-carbon economy, which is considered to play a key role in maximizing long-term economic growth. Meanwhile, green investment has also emerged as a popular theme. CDF mainly invests in green industries with its two major subsidiaries, CDIB Capital and KGI Life, and actively responds to government policies. The total investment in 5+2 industrial transformation plan amounted to NT$156.7 billion, of which nearly 80% of the investments are in green energy technology plus circular economy.
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Green Credit
KGI Securities organized 41 equity capital raising cases in the capital market in 2021, raising around NT$35 billion. These included 15 environmental protection and green energy cases, accounting for about 36.5% of the number of cases organized in the year. The environmental protection and green energy funds raised more than NT$18 billion, accounting for about 52% of the funds raised in the current year.
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Green Bonds
KGI Securities participated in 7 domestic ESG-related underwriting or guidance cases in 2021 (including 5 green bonds, 1 sustainable bond and 1 social bond), with a total of NT$14.5 billion issued. KGI Life responded to the government’s green finance action plan 2.0 policy to promote green financial product development and invested in green bonds issued by TSMC and Ørsted to support the development of clean energy in Taiwan, with an investment amount of NT$2.3 billion. A total of NT$2.3 billion was investment to implement the ESG investment spirit through action. Apart from investing in domestic green bonds, KGI Life has invested NT$12.8 billion in foreign green bonds and Peruvian sustainable bonds
Green Financing
In 2020, KGI Securities managed 29 equity financing cases, raising over NT$ 22 billion, of which 12 were for environmental protection and green-energy companies, representing 41% of the total cases. The amount of equity fundraising for environmental protection and green-energy companies surpassed NT$ 9.8 billion or 45% of the total finance managed by KGI Securities; underwriting income from green-energy cases surpassed NT$ 80 million, accounting for approximately 31% of total underwriting income in 2020.
Green Credit
While considering large credit applications of over US$10 million in water-intensive and highly polluting industries, credit analysis has to consider various aspects of technology, market, finance, and environmental protection. Depending upon individual cases, additional conditions will be laid for loan sanction.
Incorporating the Equator Principle into "Credit Rating Checklist." If there is any dispute regarding environmental and labor-management issues, etc., the applicants will be deducted points under the operations/management categories, such as risk management, corporate governance, etc., in the Credit Rating Checklist, so as to reflect the operating risks involved.
Loans will not be granted to applicants who do not comply with environmental protection guidelines and have no concrete plans for making improvements. For existing clients, corrective actions are required to undertake. To help and encourage enterprises to strengthen environmental initiatives and fulfill their corporate social responsibilities, non-compliant companies deemed to have a serious impact on company operations and KGI Bank’s obligations will have their credit capped or progressively reduced.
Policy and Goal
To ensure that the organizational goals and key decisions in terms of environmental, social, and governance (ESG) practices are consistent with the United Nations Sustainable Development Goals (SDGs) and the Paris Agreement, CDF adopts a top-down corporate governance structure. With effective policies, management systems, and controls in place, CDF integrates SDGs into the decision-making process to create a responsible banking business model in line with the Principles for Responsible Banking (PRB). CDF is also committed to promoting green finance through green project financing, green lending, and green bond underwriting in hopes of speeding up the transformation and sustainable development of the renewable energy industry in Taiwan.
Performance and Goal 2020
Action plan | Performance | Goal |
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Implement responsible investment and green finance, and incorporate ESG into investment decision actions. |
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Promote investments in the green industry |
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Develop strategies and policies in response to climate change |
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Our funds
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Continue to explore investment projects in AI technology, environmental innovation, potential medicine, cultural and creative industries. |
Promote green-energy upgrades and help raise funds for the green-energy-technology industry with compounded annual growth rate of 8%~10% for the next three years. | 2020 green credit balance was NT$16.578 billion. |
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Society
Whether it is charity programs, emergency aid, industry-academia cooperation, or talent cultivation, the core we focus on most will never change: the positive driving force that education brings to society.