Sustainable Finance Impact

SKFH has conducted research on sustainable investment and industry trends in Taiwan and abroad, and collaborated with internal and external experts to create an ESG-themed investment strategy for strengthening the the performance of the Subsidiaries, SKL, SKB, MLS, SKIT, in sustainable investment targets, leveraging our core functions to pursue stable long-term returns and maximize stakeholder values. Through this strategy, we also aim to drive industry transition and build a sustainable future.

The SKB, a subsidiary of SKFH, follows the United Nations PRB to promote the sustainable development of the financial industry. In 2021, it signed the "Equator Principles" and announced the implementation of a "Sustainable Lending Policy". To promote the transition of high carbon-intensive industries and encourage the development of low-carbon industries. SKB has identified six major industries to assess the sustainable impact of funding and is committed to realizing the vision of sustainable economic and environmental development.

2023 Sustainable Finance Performance

ESG-themed Investment and Lending

ESG Themes		Type	2022	2023
	Sustainability bonds	Debts	212.8	209.7
	Social bonds Health education business Public construction and social welfare business Taiwan precision health industry under the government's six core strategies	Equities	919.8	770.0
		Debts	774.8	779.6
		Loans	25.0	38.3
	Green bonds Green equity investment(including renewable energy) Green lending Green energy and renewable energy industry under the government's six core strategies	Equities	70.1	84.0
		Debts	500.8	558.3
		Loans	52.5	80.1
	ESG outstanding performance enterprises, targeting corporate governance, compensation, and components of domestic and international sustainable indices	Equities	994.4	797.1
		Debts	3,146.5	3,193.3
		Loans	118.5	125.5
Total		-	6,815.0	6,775.7

 

Sustainability-linked Loans

Unit: NT$ 100 million  

ESG performance-linked aspects	2022	2023
E、S、G	26.6	45.8
E、S	12.8	9.5
S、G	2.4	6.0
E、G	1.0	1.0
E	18.8	28.9
S	0	0
G	0	0.6
Total	61.6	91.8

 
Green Lending

 Unit: Credit balnace /NT$ 100 million

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SDGs	Theme	2022	2023
	Renewable energy	31.4	28.8
	Clean transportation	10.7	24.9
	Green buildings	8.0	16.3
	Energy efficiency	2.1	6.0
	Pollution prevention and control 0.3	0.3	4.0
	Climate change adaptation 0.02	0.02	0.02
	Terrestrial and Aquatic Biodiversity Conservation	0.01	0.01
Total		52.5	80.1

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To practice green finance, SKFH and its subsidiaries actively invest in renewable energy development, including participation in the development and construction of solar power plants in the industry, to support the development of green finance. We also support industries to develop clean energy through green project equity investment and green bond investment.

In 2023, SKFH's subsidiaries increased the investment of NT$720 million into constructing renewable energy power plants, which are expected to generate 118,177 MWh, which can supply about 394,000 households for monthly use, and save 58,497.5 metric tons of carbon dioxide. We also increased the approved lending by NT$611 million, which are expected to generate 1,200 MWh, which can supply about 4,000 households for monthly use, and save 593.8 metric tons of carbon dioxide.

As of the end of 2023, SKFH has invested and financed NT$15.69 billion in renewable energy development, with an accumulated electricity generation of approximately 712,700 MWh and an accumulated carbon reduction benefit of 465,373 metric ton of carbon dioxide.