Cathay United Bank (CUB) is at the forefront of advancing low-carbon initiatives across the Asia-Pacific region. The bank committed to aligning its sustainability strategies with international standards, extending its efforts to key overseas markets. 

Michael Wen, executive vice president of CUB, stated: “As a member of the Coalition of Movers and Shakers on Sustainable Finance, Cathay United Bank aims to be the leading brand in green finance. Beyond our sustainability projects in Taiwan, we focused on aligning with international markets and guiding Asia-Pacific corporations in their net-zero transition.”

The Coalition of Movers and Shakers on Sustainable Finance was established in 2022 by leading Taiwanese banks under the supervision of the Financial Supervisory Commission. Coalition members have pledged to take active measures in green procurement, funding and engagement, information disclosure, assistance and promotion, and international collaboration to accelerate national and industrial net-zero transformation.

CUB has made significant strides in sustainable finance over the past two years. The bank’s sustainable credit balance has grown by 19%, and sustainability-linked loans (SLL) increased by 43% YoY as of the end of June 2024. These developments position CUB as a leader in supporting the decarbonisation efforts of corporate clients across Asia Pacific. The bank’s credit portfolio covers various industries in China, Singapore, Malaysia, Vietnam, and the Philippines, where CUB collaborates with businesses to achieve the 2050 net-zero emission target.

Net zero is the global target for mitigating climate change by mid-century, requiring CO2 neutrality by 2050 to maintain a 1.5°C temperature rise limit. The 2016 Paris Agreement, negotiated by 196 parties, addresses climate mitigation, adaptation, and finance.

First Taiwanese bank to adopt Equator Principles

CUB began its sustainable finance journey by adopting the Equator Principles in March 2015, becoming the first Taiwanese bank to implement this global environmental and social risk management framework used by financial institutions to assess and manage environmental and social risks in projects. They establish a minimum standard for due diligence and monitoring, guiding responsible risk decision-making.

Further demonstrating its commitment to sustainability, the parent company of CUB, Cathay Financial Holdings, became the first Taiwanese financial institution to join the RE100 initiative in 2022, pledging to source 100% renewable energy across all global operations by 2050. This commitment underscores the bank’s broader goal of achieving net-zero carbon emissions and supporting global climate action.

CUB played a crucial role in financing Vietnam’s largest onshore wind power project in 2022. This project, the first of its kind completed by a Taiwanese bank in partnership with the Asian Development Bank, exceeded its power generation targets by 120%, leading to a reduction of 215,000 tons of carbon dioxide emissions annually.

First SSL in the Philippines

In July 2022, CUB’s Manila branch made a significant breakthrough by signing the first SLL in the Philippines with PrimeAsset, a holding company of the Villar Group. The PHP 1.25 billion ($22 million) loan supports the group’s subsidiary, PrimeWater, and marks a pioneering achievement in the Philippine financial market. This milestone was recognised with the 2023 Stevie International Business Award, further establishing CUB’s leadership in sustainable finance.

In 2023, CUB strengthened its green finance initiatives with several key projects. In the fourth quarter, the bank’s Singapore branch partnered with Apeiron Bioenergy, a leader in sustainable energy, to sign a green trade loan agreement. The loan supports the production of biofuel from used cooking oil which is expected to reduce the transportation industry’s carbon emissions by approximately 80%.

By the end of 2023, CUB had approved loans for over 2,700 solar power plants domestically and internationally.

CUB remains committed to deepening its involvement in sustainable finance within Taiwan while expanding its influence internationally. By incorporating rigorous environmental and social impact assessments into large-scale project financing, CUB aims to lead the region in balancing profitability with sustainability, using its financial expertise to encourage businesses to contribute to global environmental goals.

Contact details:

Cathay United Bank

https://www.cathaybk.com.tw/overseas/en/