Founded in 2015, the PCAF helps financial services firms to gauge and disclose the climate change impacts of investment and financing portfolios, covering corporate loans, collateral, equity and debt. Through a standard assessment framework for greenhouse gas accounting, financial institutions are able to calculate GHG emissions from their investment and financing portfolios. Currently, more than 400 financial institutions worldwide have joined the PCAF and adopted the PCAF methodology.
In the company’s 2021 sustainability report, CDF has disclosed the carbon emissions associated with its investment and financing portfolio including credit position of corporate clients, equity and bond investment. Upon joining the PCAF, CDF pledged to continue track the carbon footprints of its financial activities, and to cooperate with its subsidiaries to exercise its financial influence to cut the carbon emissions of its investment and financing activities year by year, so as to assist its clients to transition to low-carbon operations and jointly work towards the goal of sustainable net zero carbon emissions. After subscribing to the Science Based Targets initiative (SBTi) in 2022, the conglomerate has once again engaged with international organizations on climate issues to fulfil its commitment to responsible finance.
Meanwhile, in a bid to boost governance effectiveness, CDF and its subsidiaries CDIB Capital Group, KGI Securities Co, KGI Bank and China Life Insurance Co have all set up sustainability committees under their boards of directors to upgrade the sustainability governance levels. By deepening the culture of sustainable corporate governance from top to bottom and implementing various green finance initiatives with clear and quantifiable metrics, the companies have improved their operational resilience and progressed towards sustainable operations.
CDF's long-standing dedication to the ESG practice has been recognized with international awards many times and its sustainability achievements are well documented, including receiving the highest A rating from the Carbon Disclosure Project (CDP) and being included by the Dow Jones Sustainability Indices (DJSI) World and DJSI Emerging Markets indices as a constituent stock for three consecutive years. Additionally, CDF has been ranked in the top 5% of companies in its industry in the S&P Global Sustainability Yearbook 2023 and has been named as a constituent of the FTSE4Good Index Series for six years running.