Staying true to its commitment to reach net zero by 2045, China Development Financial Holding Corporation (CDF) is focusing on both carbon reduction for its own operation and also on the adequate management of its investment portfolio to further drive green transformation. In order to do so, CDF has joined SBTi (Science Based Target initiative) and not only completed the first phase of green power procurement and transfer but also published its first ever TCFD Report within this year. CDF Group and its subsidiaries also launched diverse green financial products and services and announced today a decarbonization strategy to phase out investment and financing in the thermal coal mining and unconventional oil and gas industries by 2040.
CDF is the first financial holding company in Taiwan to commit its entire portfolio to reach net zero carbon emissions by 2045. The group's subsidiaries have integrated net-zero transformation into its business development. As of the end of Q3 2022, China Life’s overseas green bond investment has amounted to NT$26.3 billion. KGI Securities reported a NT$ 70 billion of green financing balance. KGI Bank’s credit balance in green technology industry reached NT$15.1 billion, and its green deposits accumulated to more than NT$6 billion. In 2022 CDIB Capital has completed withdrawing its on-balance sheet investments from coal-fired and coal-mining industries. CDF also expects to increase its green portfolio by 15% in 2023.
In order to further implement its carbon reduction plan, CDF has launched a Sustainable Finance Policy, gradually limiting investment and financing positions in thermal coal mining and unconventional oil and gas industries. In addition, the company will negotiate and encourage clients of high-carbon emission industries to initiate carbon reduction transformation plans. By 2040 CDF aims to completely phase-out global thermal coal mining, unconventional oil and gas industries from its investments.
CDF was awarded four awards in the 2022 TCSA Taiwan Enterprise Sustainability Award, recognized for its progress and achievement in net zero commitment. Selected as one of Taiwan's Top 100 Sustainable Model Enterprises, the integrity, credibility and communication efficiency of CDF’s sustainability report also earned CDF the highest platinum award. In addition, CDF was bestowed the honor of Climate Leadership Award for the fourth consecutive times for our push for green investment, the purchasing of green power, and participation in international initiatives; we have also performed outstandingly in the field of information security and won CDF’s first Information Security Leadership Award.
CDF stated that, the company is committed to providing sustainable financial solutions for customers, employees, shareholders and the society, and creating positive sustainable influence through financial services, and becoming a leading financial enterprise in Asia. Net-zero transformation is not only the core strategy of CDF, but also its mission and commitment for the common good of all humankind.