Chang Hwa Bank earns recognition at ESGBusiness Awards 2024
The banking company was honoured for its commendable commitment to its Embracing a New Era of Carbon Reduction initiative.
Chang Hwa Bank, the first state-owned bank in Taiwan to commit to setting carbon reduction goals in line with the Science Based Targets initiative (SBTi), bagged the Carbon Disclosure Award - Taiwan at the ESGBusiness Awards 2024.
The bank’s targets aligned with SBTi were reviewed and approved in 2024. It has set a goal to reduce Scope 1 and 2 emissions by 42% by 2030, based on the aim of keeping global warming below 1.5°C. For Scope 3 emissions related to its financing activities, the goal is to keep global warming well below 2°C, using 2022 as the base year.
Carbon reduction goals
Chang Hwa Bank has developed a comprehensive net-zero strategy called the "5C Carbon" campaign, which focusses on carbon inventory, reduction, footprint, neutrality, and rights. In 2023, CHB's greenhouse gas (GHG) emissions were 15,142 tons of CO2 equivalent (tCO2e) on a market-based approach. Verification under ISO 14064-1 then showed a 16.97% reduction from 2020 levels, with the implementation progress at 40.4%. This indicates that the bank’s carbon reduction efforts are making an impact.
Chang Hwa Bank has also completed a carbon footprint verification for its credit card operations using ISO 14067 and received certification from the Ministry of Environment. To further attain improvement, the bank also plans to work with customers to reduce carbon emissions.
According to the methodology published by the Partnership for Carbon Accounting Financials (PCAF), CHB calculates the carbon emissions of its investment and financing portfolio using the practical manual for financial carbon emissions (Scope 3) provided by the Bankers Association. In 2023, the bank expanded its investigation to include sovereign bonds, small and medium-sized enterprises, and short-term credit. This achieved a coverage rate of 70.62%. The financed emissions amounted to 7.65 metric tons of carbon dioxide equivalent (MtCO2e), with an economic emission intensity of 3.97 tCO2e per NT$1m invested. This huge increase in total carbon emissions from 2023 is credited to the expanded scope of the investigation, which also includes large enterprises and loans with a duration of one year or more. The coverage rate of the investigation has increased from 46.74% to 70.62% of the total investment and financing amount.
Furthermore, CHB will use the results of GHG emissions analysis to update its policies and adjust its position. This update includes setting limits on investments in carbon-intensive industries, such as coal and unconventional oil and gas sectors, in line with science-based targets.
Carbon neutrality
On top of this, CHB has also made progress towards carbon neutrality. By 2022, the bank achieved carbon neutrality certification for its Changhua Branch under PAS 2060 standards. The Shulin Branch also received carbon neutrality certification in 2023. Aside from this, the Xisong Branch’s lighting fixture replacement project passed ISO 14064-2 verification. The Ministry of Environment has approved this project, allowing CHB to apply for carbon rights and move closer to its net-zero emissions goal that aligns with SDG 13: Climate Action.
The ESGBusiness Awards recognises and celebrates companies that lead the way in building a sustainable future. The awards programme honours businesses that demonstrate outstanding commitment and achievement in environmental, social and governance (ESG) practices.
The ESGBusiness Awards is presented by ESGBusiness. To view the full list of winners, click here. If you want to join the 2025 awards programme and be acclaimed for your company's outstanding commitment and achievement in environmental, social, and governance (ESG) practices, please contact Julie Anne Nuñez at [email protected].
