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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
NT$ 677.57 billion
Green Investment and Lending
NT$ 72.24 billion
ESG-themed Investment and Lending
ESG Themes | Type | 2022 | 2023 | |
Sustainability bonds
|
Debts | 212.8 | 209.7 | |
|
Equities | 919.8 | 770.0 | |
Debts | 774.8 | 779.6 | ||
Loans | 25.0 | 38.3 | ||
|
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
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 |
The Carbon Reduction by Green Investment and Lending in Renewable Energy
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.
Investment and lending amount for development and construction of renewable energy and carbon reduction benefits | ||
Projects | 2022 | 2023 |
Green project investment, renewable energy green bonds investment (NT$100 millions) | 95.82 | 103.02 |
Renewable energy plants loan (NT$100 millions) | 47.73 | 53.84 |
Cumulative estimated power generation yearly (Ten of MWh) | 59,332 | 71,270 |
Cumulative estimated carbon reduction yearly (Metric ton of carbon dioxide) | 406,282 | 465,373 |