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 adheres to the United Nations Principles for Responsible Investment (PRI) and the Principles for Sustainable Insurance (PSI), and SKFH Sustainable Finance Policy, incorporating ESG risk factors into our financial operations, including investments, financing, and life insurance. Before making decisions, we evaluate the ESG sustainability performance of counterparties based on asset-specific guidelines. With the exception of some assets (such as cash and foreign exchange hedging) where responsible investment is not feasible, 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 (list of non-investable targets). In the case of controversial industries, coal and unconventional oil and gas-related industries, it is required to verify whether the investment aligns with our industry-specific guidelines to determine whether to proceed with transactions. Compliance with the guidelines is a prerequisite for any business dealings. After the investment, we also implement due diligence, regularly or irregularly monitor the financial status of investee companies and ESG-related risks, and engage companies with high ESG risks and high carbon emissions in order to mitigate sustainability-related risks and enhance post-investment ESG management. In addition to establishing a responsible investment evaluation mechanism and conducting post-investment management, we also actively search for sustainable investment targets, grasp ESG opportunities, and invest in industries that promote sustainable development, thereby exerting a positive impact on sustainability.
Institutional Investor Due Diligence and Stewardship
Institutional investor stewardship is integral to responsible investment, ensuring the overall interests and long-term value of fund providers (including shareholders and customers), reducing sustainability-related risks, and seizing opportunities. SKL actively monitors the operational conditions and sustainability performance of investee companies. Through engagement, shareholder actions, and initiatives, we endeavor to exert positive financial influence.
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 investmet 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 2024, SKL's total investment amount in ESG-themed investments exceeded NT$582.9 billion, representing a growth of 6% compared to the previous year.
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Low Carbon Green bonds 234 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 72 NT$100 million |
Innovation Health education industry 816 NT$100 million |
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Innovation Public and social welfare industries 582 NT$100 million |
Common Good Social responsibility bonds 3 NT$100 million |
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Common Good Sustainability/ Sustainable development bonds 206 NT$100 million |
Common Good Companies with excellent ESG performance 3895 NT$100 million |
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Total 5829 NT$100 million |
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Low-carbon Investment and Impact on the Environment
To address climate change, enhance climate resilience, and promote green finance to achieve the 2050 net zero carbon emissions target, SKL is actively investing in the renewable energy sector. In addition to investing in green bonds, we have established a dedicated unit to develop green energy investment plans. By investing in power plant construction and operation enterprises, as well as planning the development of large-scale solar power stations, we are eager to foster the growth of green energy in Taiwan and support industries' transition to clean energy. Among them, approximately NT$16.9 billion was invested in the government's "12 Key Strategies" industries, including solar photovoltaic (1. wind power generation/solar photovoltaic), grid equipment (4. power system & energy storage), energy-saving technology development (5. energy conservation), waste recycling (8. resource circulation and zero waste), public transportation (10. net-zero green living), and green bonds (11. green finance), in response to the government's strategic plan to achieve the goal of net-zero transformation by 2050. In 2024, SKL invested NT$7.83 billion in the renewable energy sector. This investment is expected to generate an annual electricity output of 3,025.03 GWh, which can avoid 1,497,391 tCO2e each year. These efforts are anticipated to yield positive environmental benefits, aligning with the industrial goal of achieving net zero emissions.
Green bonds - renewable energy category
56.9
NT$100 million
Project-based renewable energy power plants
21.4
NT$100 million
Total investment amount
78.3
NT$100 million
Estimated annual electricity generation
302503
10,000 kWh
Estimated carbon reduction
1497391
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
