CHIMEI and E.SUN Bank sign ESG asset-linked loan
Sustainability

CHIMEI and E.SUN Bank sign ESG asset-linked loan

CHIMEI Corporation will use funds from this loan to support the company’s development of innovative materials and green transformation

  • By ICN Bureau | July 17, 2024

CHIMEI Corporation and E.SUN Bank signed an ESG asset-linked loan agreement for a total of NT$20 billion on July 15, 2024. Based on the weight of ESG assets held by CHIMEI Corporation as collateral, E.SUN Bank will provide a preferential interest rate to encourage CHIMEI Corporation to invest in more assets that have a positive impact on the environment, society, and governance.

CHIMEI Corporation will use funds from this loan to support the company’s development of innovative materials and green transformation, thereby realizing its “Clean & Green” vision and achieving the goal of net-zero carbon emissions by 2050.

Currently, CHIMEI has invested a total of NT$27 billion in green financial products. The ESG assets set by CHIMEI Corporation and E.SUN Bank primarily include green bonds with medium to long-term ESG commitments, such as Taipei Exchange's green bonds and sustainability bonds. The funds will be invested in projects or programs that are beneficial to the environment and sustainability.

 Over the years, CHIMEI Corporation has demonstrated its commitment to environmental protection through specific actions. Apart from developing green energy and implementing green production practices to minimize environmental impact, CHIMEI Corporation has expanded its internal carbon and water pricing initiatives since 2024, and continued to actively pursue production improvements, energy transformation, and the promotion of sustainable materials.

Furthermore, CHIMEI Corporation is dedicated to collaborating closely with suppliers, customers, and all stakeholders towards achieving the net-zero carbon emissions target by 2050. In recognition of its international sustainability performance, CHIMEI Corporation received EcoVadis' highest honor, the “Platinum Award”, for the first time during the 2024 assessment. EcoVadis, the foremost global sustainability assessment platform, awarded this recognition, placing CHIMEI Corporation among the top 1% of the world’s 130,000 participating enterprises.

E.SUN Bank said that this collaboration also marks the continuation of E.SUN Bank and CHIMEI Corporation's partnership. They jointly led the issuance of the largest green bond (totaling NT$5 billion) by a private enterprise at the time to complete CHIMEI’s four major green projects in 2018. In 2022, they signed a three-year sustainable linked loan amounting to NT$2 billion, setting carbon reduction pathways based on Science-Based Targets (SBT) for a 1.5°C global warming scenario. It is hoped that through this ESG asset-linked loan, they will enhance the long-term competitiveness of corporate green transformation.

Upcoming E-conferences

Other Related stories

Startups

Chemical

Petrochemical

Energy

Digitization