Promote Sustainable Finance | Unleashing the Importance of Sustainable Finance | Common Good | 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," integrating Environmental, Social, and Governance (ESG) factors and incorporating information from independent third-party rating agencies into our investment analysis process. 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; Before investing, we verify whether the potential investment aligns with our industryspecific guidelines and conduct an ESG assessment to determine whether to proceed with transactions. Compliance with the guidelines and passing the ESG assessment is a prerequisite for any business dealings.
In addition to establishing a responsible investment evaluation mechanism, we also actively search for sustainable investment targets, grasp ESG opportunities, and invest in industries that promote sustainable development. 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-related risks to mitigate sustainability-related risks and enhance post-investment ESG management, thereby exerting a positive impact on sustainability.
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 2023, SKL's total investment amount in ESG-themed investments exceeded NT$548 billion, with an investment amount of NT$45 billion for sustainable development bonds (sustainable development bonds, social responsibility bonds, green bonds), representing a growth of 3% compared to the previous year.
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Low Carbon Green bonds 247 NT$100 million |
Low Carbon Project-based investments in renewable energy 21 NT$100 |
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Low Carbon Six core strategies - green energy and renewable energy industries 71 NT$100 million |
Innovation Health education industry 777 NT$100 million |
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Innovation Public and social welfare industries 735 NT$100 million |
Common Good Social responsibility bonds 3 NT$100 million |
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Common Good Sustainability/ Sustainable development bonds 199 NT$100 million |
Common Good Companies with excellent ESG performance 3426 NT$100 million |
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Total 5480 NT$100 million |
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Green investment - supporting the renewable energy industry
In 2023, the investment in project-based renewable energy industries increased by NT$320 million, generating approximately 7.903 GWh of electricity, enough to supply about 26,000 households for a month, saving around 3,911.8 tCO2e.
Green bonds - renewable energy category
57
NT$100 million
Project-based renewable energy power plants
21
NT$100 million
Estimated annual electricity generation
281143
10,000 kWh
Estimated carbon reduction
139166
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
