Chang-Geng Li: Promoting Sustainability Doesn't Require Sacrificing Profits; Cathay Life to Expand Coal Divestment After 2040

(CNA) Taipei, July 1 - Cathay Financial Holding President Chang-Geng Li stated today that a water treatment company invested in over 20 years ago by Cathay Venture and a few shareholders has seen its stock price surge, proving that sustainability does not necessitate sacrificing profits; both can be achieved. Cathay Life announced it is further expanding its coal divestment efforts, with plans to cease new investments in stocks where more than 5% of revenue is derived from the coal industry by the end of 2040.

Cathay Financial Holding held its 10th Cathay Sustainable Finance and Climate Change Forum today. In a video address, FSC Chairman Chin-Lung Peng affirmed Cathay Financial Holding's 10-year contribution to sustainable finance and climate change issues, stating the FSC will continue to strengthen the development of green and transition finance markets, encouraging financial institutions to assist corporate transformation and enhance resilience through innovative financial instruments.

In his speech, Chang-Geng Li noted that 10 years ago, climate change was largely considered an environmental issue, but it has now become a systemic risk impacting economic development and industrial competitiveness.

Li emphasized Cathay Financial Holding's three core principles in promoting sustainability: first, a commitment to long-term value, as climate risks do not disappear with economic cycles; second, innovation-driven growth, where sustainability and growth are not mutually exclusive but can mutually promote value creation; and third, a commitment to collaborative well-being, inviting all parties to participate in addressing systemic risks like climate change, which is the original intention behind Cathay Financial Holding's continuous hosting of the forum.

Li pointed out that the forum invited a water treatment company to share its experiences. When this company was founded over 20 years ago, it was supported only by Cathay Venture and a few shareholders. Today, its stock price has significantly increased, with related investment returns reaching tens of times the initial investment, demonstrating that sustainability and profit pursuit can go hand in hand.

Following the forum, Li, along with the presidents and senior management of its subsidiaries, spoke with the media. Cathay Life President Chao-Ting Lin stated that as of the end of 2025, Cathay Life's green investments amount to nearly NT$242.5 billion. This figure is projected to increase to NT$290 billion by 2030, with the growth including investments in offshore wind power and increased investment in green bonds.

Lin mentioned that Cathay Life's real estate investments play the role of a "green landlord." From 2022 to the end of 2025, the company has cumulatively supplied 60 million kilowatt-hours of green electricity to tenants. This service has also boosted rental income, further validating that sustainability and profitability can coexist.

Cathay Life initiated its coal divestment commitment in 2019. By 2025, the threshold for coal revenue in corporate business will be lowered from 30% to 20%. This means that companies with over 20% of their revenue derived from coal will be designated by Cathay Life as ineligible for new investments. Lin announced that by 2040, the revenue threshold will be further reduced to 5%. Cathay Life plans to cease new investments in stocks where more than 5% of revenue comes from the coal industry by the end of 2040, aiming to contribute through its role as a long-term investor.

Cathay United Bank President Chong-Yi Deng stated that the bank's sustainable lending balance reached NT$100 billion by 2025, exceeding its target ahead of schedule. The goal is to achieve NT$200 billion in sustainable financing by 2035.

Cathay Century Insurance President Wan-Hsiang Chen reported that Cathay Century Insurance is currently providing construction-related engineering insurance and subsequent operational property insurance for renewable energy generation projects in Taiwan. As of the end of 2025, the estimated total insured amount for solar power nationwide is NT$464.1 billion, with Cathay Century Insurance covering NT$108.9 billion in operational policies, representing 23.5% of the total. For offshore wind power installations, the total insured amount is NT$976.8 billion, and Cathay Century Insurance covers NT$260.9 billion in active policies, accounting for approximately 26.7%. Both proportions exceed the insurance company's market share of 13%, indicating a greater investment in green energy by Cathay Century Insurance.

Chen further stated that Cathay Century Insurance's renewable energy underwriting cases collectively support a power generation capacity of 6.68 billion kilowatt-hours, which is sufficient to meet the electricity needs of about 14% of Taiwanese households. Cathay Century Insurance has also strengthened its underwriting management for high-carbon-emitting industries, introducing "Management Guidelines for Coal, Unconventional Oil, and Natural Gas in the Insurance Business" in 2024. According to the planned schedule, the company will gradually cease providing insurance coverage for new projects in these industries. (Editor: Chun-Mao Chang) 1150701

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