Fubon Financial Holdings has released its 2024 Task Force on Climate-related Financial Disclosures (TCFD) report, marking the fifth such publication by the company since 2021. The firm reports that it has received the “Level 5+: Excellence” compliance rating from the British Standards Institution for three consecutive years.
Richard M. Tsai, Chairman of Fubon Financial Holdings, stated, "The global climate crisis is intensifying, with extreme disasters caused by climate change occurring with increasing frequency. Events such as the California wildfires and the collapse of Swiss glaciers underscore the urgent need for climate action. Last year’s United Nations Climate Change Conference (COP29) also centered on climate finance as a core issue, driving forward global efforts to reduce carbon emissions. In response to this trend, Fubon Financial Holdings has been planning its four sustainable strategies of 'decarbonization, digitalization, empowerment, and connection' since 2021. Starting with the 'decarbonization' strategy, the company assists customers in their sustainability transformation and promotes the 'Run For Green' initiative, exerting influence in both financial and non-financial aspects. By collaborating with stakeholders, the company drives Taiwan's industries toward sustainability transformation."
The latest TCFD report outlines three main actions to strengthen climate risk management and carbon reduction:
First, Fubon will expand its quantitative analysis of climate risks within life insurance operations by assessing how climate risk factors could impact claims related to death and hospitalization.
Second, since 2021 Fubon has set criteria for credit business involvement with five high-emission industries—coal-fired power plants, coal mines, cement, petrochemicals, and steel—and in 2023 extended these criteria to investment and underwriting strategies for decarbonization. The new report announces a more aggressive decarbonization timeline: a full exit from coal-related industry by end-2030 and withdrawal from investments and underwriting in non-conventional oil and gas by end-2040 unless companies present credible carbon reduction plans aligned with Paris Agreement targets.
Third, Fubon is strengthening engagement efforts through green finance initiatives that support industrial transformation towards net-zero goals. In collaboration with subsidiaries over the past two years, Fubon has organized workshops focused on Science-Based Targets for Carbon Reduction and guidelines for sustainable economic activities. These workshops aim to help corporate clients implement carbon reduction strategies consistent with international standards.
Fubon notes that it was first in Taiwan’s financial sector to publish a TCFD report and among the earliest domestic financial entities to commit to Science-Based Targets. It participates in several international initiatives including RE100—the global renewable energy commitment—as well as membership in organizations like Partnership for Carbon Accounting Financials (PCAF) and Asia Investor Group on Climate Change (AIGCC). This allows Fubon to keep pace with global trends while advancing responsible finance practices.
Looking ahead, Fubon states it will continue enhancing its management of climate risks across its value chain while helping clients transition towards low-carbon operations. The company also intends to support development within Taiwan’s green energy sector as part of broader efforts toward a net-zero future.
For more details about Fubon's approach to climate-related disclosures or access to its full 2024 TCFD report: https://www.fubon.com/financialholdings/citizenship/downloadlist/downloadlist_report/2024_Fubon_FHC_TCFD_Report_CH.pdf