In line with its role in advancing green finance for public-sector banks, Land Bank of Taiwan launched the “Green Deposit Initiative” in March of this year. Notably, six corporations, including MPI Corporation, Shinkong Insurance, AUO, SILITECH, Kedge Construction, and Raydium have shown strong interest in the initiative.
As of the end of July, a successful sum of NT$3.2 billion has been raised. All of the raised funds will be directed towards investments in green and socially beneficial projects.
In response to the Financial Supervisory Commission’s “Corporate Governance 3.0 – Sustainable Development Blueprint” and “Green Finance Action Plan 3.0,” Land Bank has formulated a sustainable finance plan.
This plan focuses on “Sustainable Credit,” “Sustainable Investment,” and “Sustainable Products,” concurrently encouraging the nation’s industries to undertake low-carbon transformations, enhancing industry resilience, and disclosing product information for customer identification and trust.
In recent years, Land Bank has not only endorsed the Equator Principles, promoted ESG syndicated loans, and provided sustainable supply chain financial services under the scope of “Sustainable Credit,” but it has also issued green bonds and actively invested in corporate green transformations in the “Sustainable Investment” domain.
The introduction of this year’s “Green Deposit Initiative” falls within the realm of “Sustainable Products.” The bank guides customer deposits toward ESG areas, enabling customers to disclose their deposit information in corporate sustainability reports and annual reports. This showcases their support for environmentally, socially, financially, and corporately sustainable operations.
In accordance with the principles of green and social bonds, and sustainable development bond guidelines, Land Bank channels all raised funds into green and socially beneficial investments. Green investments encompass renewable energy deployment and financing for green construction. Socially beneficial investments include balanced urban-rural development, support for vulnerable groups, and establishment of educational facilities and medical institutions.
Moreover, to ensure the proper use of funds for the “Green Deposit Initiative,” Land Bank has entrusted KPMG Taiwan to act as a third-party assurance provider who will conduct annual audits of cash flows, authenticate the information, and provide an assurance report.
As a wholly state-owned bank, in recent years, Land Bank has not only introduced solar photovoltaic equipment loans but also collaborated with the government to offer preferential loans for post-pandemic recovery and low-carbon intelligent governance projects.
In 2021 and 2022, it led the industry by issuing green bonds, contributing to the benefits of green finance and concurrently spurring investment in green energy development. Under the leadership of Chairwoman Chuan-Chuan Hsieh, Land Bank remains committed to creating a mutually beneficial operational model with customers and employees.
It plays an active role in fostering positive development within the environment, society, and economy. By ensuring proper fund utilization in green and sustainable projects, the bank aims to become a driving force for promoting green economic development.
Land Bank of Taiwan