CHIMEI Corporation and E.SUN Bank Collaborate on ESG Asset-Linked Loan
CHIMEI Corporation and E.SUN Bank Collaborate on ESG Asset-Linked Loan

CHIMEI Corporation and E.SUN Bank Collaborate on ESG Asset-Linked Loan

  • 17-Jul-2024 2:54 PM
  • Journalist: Peter Schmidt

CHIMEI Corporation and E.SUN Bank finalized an ESG asset-linked loan agreement totaling NT$20 billion on July 15, 2024. Under this arrangement, E.SUN Bank will offer a preferential interest rate based on the value of ESG assets held by CHIMEI Corporation as collateral. This initiative aims to incentivize CHIMEI to further invest in assets that contribute positively to environmental, social, and governance factors. The funds obtained through this loan will be directed towards CHIMEI's initiatives in developing innovative materials and advancing green transformation efforts. This strategic approach underscores CHIMEI's commitment to realizing its "Clean & Green" vision and achieving net-zero carbon emissions by 2050.

CHIMEI Corporation has been an active participant in the United Nations Principles for Responsible Investment (PRI) since 2021, integrating ESG performance criteria into its investment decisions. To date, CHIMEI has allocated NT$27 billion towards green financial products, focusing primarily on green bonds with medium to long-term ESG commitments, such as those offered by the Taipei Exchange. These investments will support projects and programs aimed at enhancing environmental sustainability.

In addition to financial commitments, CHIMEI Corporation has demonstrated its dedication to environmental stewardship through practical measures. Initiatives include the development of green energy solutions, adoption of sustainable production practices to reduce environmental impact, and implementation of internal carbon and water pricing mechanisms since 2024. These efforts align with CHIMEI's ongoing pursuit of production efficiencies, energy transformation, and the promotion of sustainable materials. Moreover, CHIMEI collaborates closely with stakeholders to achieve its ambitious goal of achieving net-zero carbon emissions by 2050.

CHIMEI Corporation's commitment to sustainability has garnered international recognition, exemplified by its receipt of the prestigious EcoVadis "Platinum Award" in 2024. This accolade, awarded by the leading global sustainability assessment platform, places CHIMEI among the top 1% of over 130,000 companies worldwide, affirming its leadership in sustainable business practices.

E.SUN Bank emphasized its longstanding commitment to addressing global warming through proactive financial initiatives that promote sustainable corporate development. By leveraging CHIMEI Corporation's ESG assets, the bank strategically reinvests in operational capital, particularly in innovative material research and development, thereby supporting CHIMEI's liquidity requirements while advancing societal sustainability goals. This collaboration underscores the ongoing partnership between E.SUN Bank and CHIMEI Corporation, which previously collaborated on significant green bond issuances and sustainable loans aligned with Science-Based Targets (SBT) for carbon reduction. The ESG asset-linked loan aims to bolster the competitiveness of CHIMEI's green transformation efforts, aligning with global initiatives to limit global warming to 1.5°C.

This collaboration allows CHIMEI to strategically utilize ESG assets and expedite their green transformation journey. Looking ahead, CHIMEI remains committed to cross-sector collaboration with E.SUN Bank and other partners to champion sustainable development, fostering a positive environmental impact on both a local and global scale.

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