Promote Sustainable Finance | Unleashing the Importance of Sustainable Finance | Mutual Benefit | Shin Kong Life Sustainability
Promote Sustainable Finance
As an insurance company and asset owner, Shin Kong Life Insurance utilizes its own funds and various reserves for investment. By establishing a sustainable investment system, ESG strategies and concepts are integrated into financial operations such as investment, lending, and insurance. We collaborate with customers, business partners (including suppliers) and other stakeholders to promote responsible financial products and services. In the future, we will continue to keep pace with the trend of sustainable development, gradually increase the proportion of responsible investment, and keep up with global sustainable progress and opportunities.
Sustainable Finance Mechanism
SKL complies with the United Nations' Principles for Responsible Investment (PRI), the Principles for Sustainable Insurance (PSI), and SKFH Sustainable Finance Policy, incorporating ESG mechanisms into operational processes and methods for different investment business properties. When making investment choices and providing financing and loans, we follow the asset-specific guidelines of the SKFH Sustainable Finance Policy and integrate ESG issues into decision-making and practices, adhering to the six principles of responsible investment. With the exception of some assets (such as foreign exchange hedging derivative products), all new investments are 100% compliant with responsible investment principles.
Responsible Investment
To implement the concept of sustainable finance, we have established the "Policy and Procedures for Sustainable Investing in Securities". Before making any investment, we conduct an assessment of the investment targets, and no new investment should be made in those included in the exclusion list or the list of non-investable targets; For industries with potential controversy, we conduct ESG due diligence on trading partners according to industry-specific guidelines, and make a careful evaluation to determine whether to continue transactions. Compliance with the guidelines and passing the ESG assessment is a prerequisite for any business dealings.
In addition to establishing a comprehensive ESG investment evaluation mechanism, we also actively respond to the United Nations' Sustainable Development Goals (UN SDGs) in our investment activities and continue to search for sustainable investment targets, grasp ESG opportunities, and invest in sustainable development industries. After investing, we conduct post-investment stewardship, regularly track the operational and financial performance of the investee companies (or portfolios), and continue to pay attention to their sustainable performance and ESG assessment. Through engagement actions such as attending shareholder meetings, exercising voting rights, engaging in dialogue and interactions with the management of trading partners, we exert our influence on the investee companies to enhance long-term value for customers, employees, and shareholders, among other stakeholders.
Institutional Investor Due Diligence and Stewardship
To protect the long-term value of fund providers (shareholders, clients), reduce sustainable-related risks and seize opportunities, and fulfill our responsibilities as an institutional investor, we took the lead in signing the Taiwan Stewardship Principles for Institutional Investors issued by TWSE in 2016. Following the six principles of the code, we have issued a statement of commitment to abide by the "Code for Institutional Investors on Corporate Governance(CH)."，Through shareholder actions (dialogue with investee companies, exercising voting rights), engagement and other actions, we have improved ESG post-investment management and exert influence on investee companies to enhance the long-term value of stakeholders such as customers, employees, and shareholders. The results will be disclosed in the Stewardship Section.
ESG-Themed Investment
Shin Kong Life Insurance has not only established a comprehensive ESG investment evaluation mechanism, but also actively responds to the United Nations Sustainable Development Goals (UN SDGs) in investment actions. By researching domestic and foreign sustainable investment trends, we have extended ESG-themed investments to support sustainable development industries that address specific social and environmental issues with practical actions. We continue to monitor sustainable and development industries at home and abroad, and strengthen the investment performance of sustainable investment targets so as to fulfill our core financial competencies, and pursue the maximization of stable returns for investors while contributing to sustainable development for a sustainable future. In 2022, SKL's total investment amount in ESG-themed investments exceeded NT$213.9 billion, with an investment amount of NT$43.8 billion for sustainable development bonds (sustainable development bonds, social responsibility bonds, green bonds), representing a growth of 75% compared to the previous year.
|
Sustainable development Sustainable development bonds 235 NT$100 million |
Sustainable development Social responsibility bonds 5 NT$100 |
|
Medical Health , Social Welfare, and Infrastructure public construction and social welfare industries 27 NT$100 million |
Medical Health , Social Welfare, and Infrastructure Biomedicine of Taiwanese government's 5+2 Industrial Innovation Plan 3 NT$100 million |
|
Environmentally friendly or green energy-related industries Green bonds 197 NT$100 million |
Environmentally friendly or green energy-related industries Investments in renewable energy power plants 18 NT$100 million |
|
Environmentally friendly or green energy-related industries Green Technology, New Agriculture, and Circular Economy of Taiwanese government's 5+2 Industrial Innovation Plan 89 NT$100 million |
ESG Sustainability Benchmark Companies Investments in Taiwanese companies (stocks and related ETFs) with excellent ESG performance 1564 NT$100 million |
|
合計 2139 NT$100 million |
|
- Note 1: In 2022, the total amount invested in sustainable development bonds was NT$43.8 billion, of which NT$11.9 billion was invested in sustainable development bonds approved by Taipei Exchange.
- Note 2: The investment amounts listed in the table for the government's "5+2" industries have been calculated after excluding s co-investment position with ESG sustainable benchmark companies.
Project-Based Investments in Renewable Energy Industries
In 2022, the investment in project-based renewable energy industries increased by NT$270 million, with a total investment of NT$1.8 billion. The annual power generation reached 468.67 million kWh, which can supply 1.51 million households and reduce carbon emissions by 63,321 tCO2e per year. We expect to leverage our influence in the financial industry and work with the industry to accelerate the development of green power generation in Taiwan, and help Taiwan achieve its green energy policy goals.
Investment amount
18
NT$100 million
Annual electricity generation
48867
10,000 kWh
No. of households supplied with electricity
151
10,000 households
Reduction in carbon emissions
63321
tCO2e
- Note 1: The annual power generation was calculated based on the average monthly household electricity consumption of Taipower.
- Note 2: The annual amount of carbon emissions reduced was calculated based on the carbon emissions coefficient for electricity provided by the Bureau of Energy, Ministry of Economic Affairs.
SDGs
