E.SUN Financial institution has been engaged in lots of vital and pioneering efforts within the battle towards local weather change. This isn’t a current phenomenon — for years, sustainability has been on the core of the financial institution’s enterprise and technique, leaving it with robust credentials within the area. On the Dow Jones Sustainability World Index, E.SUN has ranked within the High 10 for 5 years in a row.
Sustainability stays an vital strategic focus for the financial institution, a dedication that it demonstrates all through its operations and enterprise.
Stepping as much as change
The main target is obvious in the way in which E.SUN has stepped as much as help vitality transition, and battle local weather change. The financial institution has supplied the financing wanted for such a change throughout each home in addition to abroad markets.
In 2015, it signed the Equator Rules, a typical baseline and threat administration framework for monetary establishments to establish, assess and handle environmental and social dangers when financing initiatives. Ever since, it has participated in renewable vitality financing as far afield as Australia and the US. Up to now, the financial institution has financed a capability of 1,495 MW of solar energy and three,746 MW of wind energy. Renewable vitality allocation capability reached 6 GW as of 2021.
E.SUN issued its first inexperienced bond in 2017. It has continued to be a daily and main issuer in addition to underwriter of inexperienced and sustainable bonds, each in new Taiwan {dollars} in addition to the US greenback. The financial institution has helped international entities elevate funds within the Taiwan-based capital marketplace for sustainable improvement. The record consists of Credit score Agricole, Orsted, Goldman Sachs, and the federal government of Chile. These inexperienced issuances are a testomony to E.SUN’s capability in underwriting, as properly the sustainability affect in debt capital in Taiwan.
Along with capital markets funding and challenge financing, E.SUN has additionally introduced ESG-linked mortgage financing to the market. It has thus supported purchasers in setting and reaching sure ESG-related targets, together with carbon discount, inclusion in sustainability indices, and inexperienced provide chain engagement.
Committing to transformation
In terms of science-based web zero aligned emission reductions targets, E.SUN has made a really robust dedication, by signing the ‘Enterprise Ambition for 1.5°C’ pledge. It is just the third monetary establishment worldwide to obtain validation of its targets from the Science-Primarily based Targets initiative (SBTi).
The financial institution has set mid and long-term objectives to fulfill these commitments. All E.SUN’s home properties will likely be transformed into inexperienced buildings by 2027. Moreover, E.SUN has joined the RE100 initiative and dedicated to utilizing renewable vitality throughout its international operations by 2040.
E.SUN applied the SBT Challenge at first of 2021. The financial institution reviewed the carbon emissions of its investments and lending positions, and formally acquired the SBT approval after six months of examination, overview, and communication. After setting its SBT, E.SUN progressively modified its insurance policies and processes when it got here to funding and lending. The financial institution has began encouraging prospects to cut back carbon emissions and make investments funds into low carbon industries, making a optimistic affect with financing.
Collaborating in direction of frequent objectives
Along with reworking its personal operations and actions, E.SUN is actively collaborating with among the nation’s main firms to advertise sustainability.
For example, 32 Taiwanese firms have been introduced collectively underneath the aegis of the E.SUN ESG and sustainability initiative. These corporations pledged to include ESG into their enterprise and implement the United Nations Sustainable Improvement Targets.
The initiative has three key parts: motion being taken by E.SUN and different firms to fight local weather change; a response to a collective aim to cut back carbon emissions; and the adoption of a greater governance for local weather change.
One other instance is the financial institution’s dedication to section out coal from its portfolio by 2035. E.SUN is the primary financial institution in Asia to make such a press release. That is in response to The Glasgow Local weather Pact, the primary UN local weather settlement in historical past that explicitly mandates a discount in using coal. The coverage applies to all E.SUN’s abroad branches and drives energetic administration of carbon emissions from monetary belongings, with a rise in inexperienced and a discount in gray belongings.
The coverage is focused at firms with greater than 5% of their income from enterprise actions regarding coal, in addition to unconventional oil and gasoline. By 2035, E.SUN may have zero publicity, with exceptions made just for funding initiatives that can contribute to carbon discount for firms.
Ever since E.SUN was based in 1992, ESG has been part of its long-term technique. The financial institution believes it has set the usual for its friends throughout Asia. The general aim of those measures and ideas is to help inexperienced vitality improvement in Taiwan and to additional have optimistic affect on international efforts to realize net-zero emissions.
For additional studying on E.SUN Financial institution’s initiatives within the ESG area, please go to its web site.
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