The United Nations launched the 2030 Sustainable Development Goals (SDGs) in 2015 and proposed 17 goals for the global governments and enterprises to jointly achieve, showing the importance attached to sustainable development. The 2020 COVID-19 epidemic led to more attention on social responsibility and governance issues and accelerated the international sustainable development investment trend. It is no longer just a simple public welfare slogan, but a trend that will affect the survival of enterprises.
To establish a more complete over-the-counter trading system for sustainable development bonds, TPEx announced on April 29, 2021 and practiced the Key Points Regarding Sustainable Development Bonds, which consolidated the Key Points Regarding Green Bonds and Key Points Regarding Sustainability Development Bonds. In addition, new social responsibility bond eligibility and related regulations were added. According to the Key Points Regarding Sustainable Development Bonds, the scope of sustainable development bonds includes green bonds, social responsibility bonds and sustainable development bonds approved by TPEx. In 2021, the Company purchased NT$1 billion of UMC’s Year 2021 Tranche 1 of Unsecured Ordinary Corporate Bonds and NT$800 million of SKCB’s Year 2021 Tranche 1 senior unsecured financial bonds, both of which obtained the green bond eligibility approved by TPEx.
1.UMC’s green bond investment plan:The Company was expected to carry out green investment projects such as the construction of solar PV systems inside and outside the plant, energy efficiency improvement of in-plant machinery and equipment and process pollution prevention to improve the use of renewable energy power, equipment operation and treatment process exhaust efficiency, which could achieve energy-saving, thereby reducing carbon emissions and waste disposal while reducing the impact of wastewater and exhaust emissions on the environment.。
2.SKCB’s green bond investment plan: The funds raised would be used for financing and refinancing of SKCB’s customers. It met the requirements of five categories of the plan, including Renewable Energy and Energy Technology Development, Energy Efficiency Improvement and Energy Saving, Water Conservation, Cleaning or Recycling, Waste Recycling or Reuse, GHG Reduction in order to meet the categories of green investment plans with substantially improved environmental benefits required by Key Points Regarding Sustainable Development Bonds.
In addition, Chunghwa Post also invested in an international green bond in 2021, with an investment face value of US$70 million (approximately NT$1.96 billion) issued by Natixis (French corporate and investment bank). Natixis is a subsidiary of the Groupe BPCE, the third largest financial conglomerate in France. The funds raised by the issuer was used for the Sustainable Development Bond Program of the Groupe BPCE, and the description is as follows:
Being aware of the enormous impact the real estate industry has on the environment, particularly in relation to natural resource depletion and climate change, the Groupe BPCE has devised a dedicated approach to identifying green buildings to further support its overall focus on environmental sustainability.
With its dedicated approach to renewable energy, the Groupe BPCE aims to make a positive contribution to climate change mitigation by reducing GHG emissions. Eligible assets are loans used for the development, construction, operation and maintenance of renewable energy projects
The Groupe BPCE’ strategies to support Europe’s leading agricultural market focus on the main environmental, social and economic challenges faced by French agricultural industry.
As a state-owned enterprise, Chunghwa Post should take the lead in fulfilling its corporate social responsibilities. In the future, we will continue to invest in sustainable development bonds, hoping to obtain investment returns and at the same time taking ESG into account.