Core financial competencies performed best and ranked among top global sustainability leaders
TAIPEI, Jan. 6, 2023 /PRNewswire/ -- The Dow Jones Sustainability Index (DJSI) announced its constituents for 2022, with Cathay Financial Holdings, one of the leading financial institutions in Asia, receiving recognition. This latest milestone marks the company's selection as a constituent of the Dow Jones Sustainability™ World Index for five consecutive years and a constituent of the Dow Jones Sustainability™ Emerging Market Index for eight years.
With the recent announcement of 2022 Dow Jones Sustainability Index constituents, Cathay FHC has maintained its lead among global sustainable enterprises for its core financial competencies.
The World Index makes its selection from about 2,500 large enterprises and corporations globally as part of its evaluation process, while the Emerging Market Index targets the top 800 companies in emerging markets for consideration, further breaking down to the top 10% of companies in each industry when it comes to sustainable management and performance.
Cathay FHC obtained the best score possible in two main core financial competencies, namely sustainable finance and financial inclusion, among the global competition. It also obtained full scores in eight other areas, including materiality, policy influence, climate strategy, human capital development, and more, out of the 22 evaluation questions.
In 2022, a total of 33 Taiwan companies is included in the DJSI World Index or Emerging Market Index, of which more than 36% come from the financial industry. Cathay FHC also leads the way in the insurance industry as a constituent that has been honored by selection for the longest time.
As a leader in the financial services industry, Cathay FHC effectively utilizes its financial competencies to support three main aims of corporate sustainability: climate, health, and empowerment. Through action, planning, and regular reviews of its environmental, social, and corporate governance (ESG) initiatives, Cathay FHC is moving towards achieving these goals while creating long-term value.
Sparing no effort in helping to promote sustainability, responsible investment, and climate initiatives, Cathay Financial Holdings embraces carbon reduction as a key objective and is making progress in three major ways:
1). Engagement: Cathay FHC cooperates with enterprises to raise awareness of the importance of ESG, sustainable business, and coordinated climate action. Taking the lead for Taiwan companies as part of Climate Action 100+, Cathay FHC has engaged major carbon-emission companies in committing to being net-zero carbon emissions or carbon neutral by 2050.
2). Operations: Cathay FHC is prioritizing procurement of certified green and environmentally friendly products.
3). Policy initiatives: Cathay FHC is the first financial institution in Taiwan to join RE100, a global initiative bringing together the world's most influential businesses committed to 100% renewable electricity. It is also one of the few insurance companies in the world to have passed the review for the Science Based Targets initiative (SBTi) in the area of carbon reduction globally, being the fourth in the country and sixth in Asia.
Cathay FHC has committed to achieving net-zero carbon emissions by 2050, and its subsidiaries are actively working towards this goal by progressively reducing their carbon emissions.
Moreover, the company is a familiar entity in vital international climate forums, including its own Cathay Sustainable Finance and Climate Change Summit, which has been running for six consecutive years. In particular, this year marks Cathay FHC's increased push to connect with the international community. Cathay FHC is the first strategic partner for the World Climate Foundation (WCF) in Taiwan. Cathay FHC took the initiative by live streaming WCF's World Climate Summit (WCS), a well-acclaimed COP27 side event held in Sharm el Sheikh, Egypt, to allow Taiwan to keep up to date with the latest trends. Chairman Hong-Tu Tsai also made history by being the first opening keynote speaker from Taiwan at WCS for 13 years and sharing his insights and experience.
Cathay FHC's sustainable practices and initiatives continue to push the industry forward. As a pioneer in green finance, it has been recognized by the international community for promoting the sustainability of Taiwan's industries, and the company will continue to progress and expand its reputation as a leading financial institution in the Asia-Pacific region that advances the public good.
