To achieve this goal, CDF has established a TCFD working group chaired by its Chief Risk Officer. The working group is responsible for promoting climate goals and development strategies approved by the Board of Directors and developing a methodology to quantify climate risks and risk appetite indicators. The CDF TCFD working group manages and coordinates the introduction of TCFD in each subsidiary at quarterly meetings and regularly tracks and manages the implementation status through climate strategies, opportunities, and risk management.
CDF understands that global cooperation is necessary to address climate change. Therefore, it actively participates in international initiatives and adopts international standards for carbon management in investment and financing. CDF has signed up for the Carbon Disclosure Project (CDP), the TCFD initiatives, and the Science-Based Targets initiative (SBTi). In June 2023, CDF joined the Partnership for Carbon Accounting Financials (PCAF), which introduces international standards for investment and financing carbon emission management to execute carbon inventory. All subsidiaries have complied with the PCAF methodology to complete equity and bond investment, corporate credit, carbon inventory on commercial mortgage and power generation project investment and financing, and set annual carbon reduction targets.
CDF aims to lead Taiwan's various industries towards green transformation and sustainability. To achieve this, CDF has consolidated the forces of China Life Insurance, KGI Bank, KGI Securities, and venture capital/private equity to provide sustainable finance solutions for stakeholders. In response to government policies, CDF has invested NT$123.1 billion in the six core strategic industries, with nearly 60% of the investments being in green power and renewable energy.
Subsidiaries such as China Life, KGI Securities, KGI SITE, CDIB, and KGI Bank have also taken significant steps towards green finance initiatives. China Life invested approximately NT$28.28 billion in domestic and international green bonds, projected to reduce approximately 317,000 tons of GHG per year. KGI Securities participated in 12 ESG-related underwriting cases, with a total investment of NT$8.28 billion, a 124% increase compared to 2021. KGI SITE has four ESG funds that passed the ESG review by the competent authority, making it the investment and trust company with the most ESG fund certificates acquired in 2022. CDIB and Hon Hai Precision Ind. Co., Ltd. established Kai-Hong Energy Co. to develop an innovative strategy for Taiwan's green energy investment, while KGI Bank launched the green deposit program, which invests program funds in the development of renewable energy and energy technology, pollution prevention and control, and other green financing demands.
CDF will continue to strengthen its green finance initiatives by following the TCFD framework to disclose its climate risk management efforts. Moreover, CDF intends to innovate its financial products and services to support clients towards green transformation and achieving sustainability.
