■ E.SUN's GHG Emission Structure
From 2014 onwards, we have begun taking carbon inventory of our service locations. In 2017, we expanded these operations to take inventory for 100% of our domestic and foreign sites. The inventory included scope 1 direct greenhouse gas emissions (including emissions from electricity generators, natural gas, company vehicles,
and firefighting equipment), and scope 2 indirect greenhouse gas emissions from consuming electricity. Considering the fact that the largest source of emissions for companies in the financial industry is investment and financing activities, we adopted the Global GHG Accounting and Reporting Standard for the Financial Industry issued by the Partnership for Carbon Accounting Financials (PCAF) in 2020 to take carbon inventory for our material assets. We used the ESG reports and CDP information published by our investees to calculate their GHG emissions. For instance, if the GHG emissions arising from the business operations of a customer are 1 million tons, and loans and investments provided by E.SUN account for 1% of said company's assets, then we will recognize 10,000 tons of GHG emissions as our scope 3 emissions. According to this calculation method, GHG emissions from our investment and financing activities account for over 98% of our annual total emissions.
In 2021, E.SUN analyzed the ESG reports and CDP information published by our investees in 2020, and used this information to break down our GHG emissions for 2020. Through currently available data, we have taken carbon inventory for 40.7% (exclude short-term securities) of our investments and 96.4% of loan balance. Total annual GHG emissions from business operations amounted to approximately 4.79 million tons, of which less than 1% are derived from direct emissions and electricity consumed for business operations. Over 98% of emissions are derived from our investees and financed projects. Therefore, we have analyzed our GHG emissions from investees and financed projects according to asset type, industry category, and region. We have set different science-based targets (SBTs) for each different type
of asset, planned out systems for managing high carbon-emitting industries, and engaged with our customers, encouraging our employees to engage with corporate customers or investees who are actively reducing their GHG emissions. We hope to use the power of finance to do our part in achieving net-zero emissions.
|
Item |
Risk Factor |
SBTs |
Measures for reducing greenhouse gas emissions |
| Scope 1 |
Use of company cars, refrigerant, and gas and natural gas |
- The baseline year is 2020
- The goal is to achieve a 42% reduction by 2030, and 2.9%
achieved to date
|
- Installing solar panels; building solar energy facilities on 100% of our buildings by
2025
- The goal is to reduce the amount by 42% by 2030
- Purchasing green electricity; by 2030, 100% of the Bank's total energy
consumption will come from green energy sources
- Purchasing renewable energy certificates in support of government energy policy.
- Phasing out energy-consuming equipment; substituting energy-efficient products
for old energy-consuming lighting fixtures and air conditioners
- Building green buildings - we aim to have 100% of our buildings certified against
the Green Building certification by 2027
|
| Scope 2 |
Electricity for business locations and buildings |
| Scope 3 |
Investment and financing (based on PCAF methodology) |
- he baseline year is 2019
- Power company project financing emission intensity (tCO2e/
MWh), the goal is to achieve a 49.7% reduction by 2030 and is
6.9% achieved to date
- Commercial real estate financing emission intensity (tCO2e/m2),
the goal is to achieve a 58.7% reduction by 2030, and 3.0%
achieved to date
- Power company long-term financing emission intensity (tCO2e/
MWh), the goal is to achieve a 49.3% reduction by 2030, and
6.1% achieved to date
- Service industry long-term financing emission intensity (tCO2e/
m2), the goal is to achieve a 58.0% reduction by 2030, and 4.1%
achieved to date
- The percentage of manufacturing company borrowers that
passed the SBTs reaches 33.3% in 2026 and was 11.1%
achieved to date
- Percentage of investee companies that passed the SBTs
reaches 34% in 2026, and was 10.12% achieved to date
|
- We committed not to financing coal-fired power generation projects from July 2019 onwards; there were no balances in this regard at the end of 2021. Accelerating the phrasal withdrawal of funds from coal-related business and non-traditional fossil fuels mining activities in 2021; in principle, no new financing will be provided starting from the end of 2030. The goal is to entirely withdraw our involvement by 2035
- We joined SBT in 2021, adopting a 1.5°C-aligned science-based target for emission reduction
- Helping customers reduce GHG emissions through initiatives and sustainable financial products, particularly by increasingly financing enterprises having joined SBT, and by increasing our position of investment and financing of which the underlying assets are green energy and green buildings
- E.SUN initiated the internal carbon pricing project which will gradually incorporate carbon costs into our lending portfolio management in the future. Through integrating the carbon prices of various countries announced by World Bank periodically, we set up the internal shadow price to calculate the implicit costs of the carbon emissions that E.SUN needs to undertake from each business loan. Additionally, the ESG related loan such as sustainability-linked loan and green loan will enjoy discounted carbon cost as the reward mechanism. By adopting he carbon pricing project, we expect to enhance the consensus to carbon issues, as well as direct the internal behavior and encourage more low-carbon business.
|
| Others (Procurement procedures;
credit card production and disposal processes; employees' business travels; waste disposal, etc.) |
|
- Engaging in carbon neutralization and research and development of recycled card materials
- Implementing local procurement and green procurement for supplier engagement
|
