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Sustainability Academy

Climate change is a major global concern, and carbon emission is an inescapable challenge for companies.

Why carbon reduction?

Global Trend

To curb global warming, countries have set and factored specific goals about climate change in national policy.

Country Net Zero Emissions/ Carbon Neutral Carbon Credit Trading Carbon Tariff/Carbon Tax Percentage of Renewable Energy Consumption
USA 2050 2013(California) 2024 -
U.K. 2050 2021 2013 65% (in 2030)
EU 2050 2005 CBAM: Trial run from 2023; Official launch in 2026 40% (in 2030)
China 2060 Launched since 2011(selected cities); 2021(national) - 20% (in 2030)
South Korea 2050 2015(national) 1st in Asia - 20% (in 2030)
Japan 2050 2010 (Tokyo) Tax for Climate Change Mitigation 36-38% (in 2030)
Taiwan 2050 - - 20% (in 2025)
Vietnam 2050 Trial run from 2025 - 15-20% (in 2030)
India 2070 - - 50% (in 2030)
Australia 2050 2007 2012 -

Applicable Laws and Regulations in Taiwan

Corporate Governance 3.0

  • Expanding the application scope for Sustainability Report: TWSE/TPEx Listed companies with a paid-in capital of NT$2 billion or more in 2023 are required to prepare and file their 2022 Sustainability Report.
  • Expanding the scope of third-party certification of the Sustainability Report: In 2022, it was further required that the chemicals industry and financial and insurance industry obtain an accountant’s opinion.

Climate Change Response Act

  • Committed to achieving 2050 Net-Zero Emissions.
  • The creation of a carbon fee mechanism is underway; carbon fees will be levied on large carbon emitters (i.e., those with annual carbon emissions of 25,000 tons) in 2024 at the earliest.

Sustainable Development Roadmap for TWSE/TPEx Listed Companies

Facts about carbon reduction

Types of greenhouse gas (GHG)

  • GHGs refer to carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and sulfur hexafluoride (SF6 ).
  • Among all, CO2 is the the most threaten GHG for the environment. It is massively emitted, and it can persist in the atmosphere for hundreds of years. The world is mainly discussing about reduction of carbon dioxide.

Definition of recurring terms

  • Carbon Neutral: The balance between emitting CO2 and removing it.
  • Net Zero Emissions: The balance between emitting GHGs (including CO2 methane, ozone, and hydrofluorocarbons) and removing them.
  • Carbon Negative: CO2 emissions less than CO2 removal.

Risks entailed for refusing carbon reduction

  • Carbon emission at a cost: Enterprises emitting excessive carbon will face an increase in financial costs, e.g., carbon fees and carbon tariff.
  • Order crisis: Many international industry giants demand their supply chain to reduce carbon emissions. Orders might get reduced if no action is taken immediately to reduce them.
  • Difficult funding: The FSC demands from financial institutions to leverage their investments and fundings to alter enterprises' mindset and guide them gradually towards the pathway of transitioning to low carbon.

Carbon reduction know-hows

Carbon Reduction Scope

Total Carbon Emissions of a Company

The Greenhouse Gas Protocol breaks down a company’s carbon emissions to be inventoried into scope1, scope 2, and scope 3.

  • Scope 1: GHGs emitted directly from the manufacturing process of a company, e.g., cement manufacture and fuel combustion.
  • Scope 2: GHGs emitted during the consumption of purchased energy (e.g., electricity, heat, or steam) during the manufacturing process of a company, e.g., a company’s carbon emissions released from its use of electricity provided by TPC’s coal-fired power plants.
  • Scope 3: Indirect emissions that result from business activities and have noting to do with self-owned or controlled assets. Sources of this emission scope include emissions from leasing, commute, purchase from upstream vendors, or delivery of goods to downstream shipping companies.

Carbon Footprint of Products

  • This includes all carbon emissions released throughout the life cycle of products, from raw materials mining, assembly, transportation, product use, to disposal/recycling.
  • What is Carbon Footprint Label?

    Product carbon footprint information undergone rigorous review process then is conveyed to consumers.

  • In 2019, E.SUN became the only bank in Taiwan to issue only zero-carbon credit cards.

    Each newly issued E.SUN credit card passes dual certification of “carbon label” and “carbon neutral”.

Carbon Inventory

What is Carbon Inventory?

  • It is the company stocktaking added with all its GHG emissions, including “Scope 1: Operations”, “Scope 2: Energy Consumption”, and “Scope 3: Emissions Derived from Business Activities”.
  • Carbon inventory is done mainly by enterprises which voluntarily inventory their own carbon emissions for the purpose of sustainable development.

Carbon Inventory Know-hows

  • Define the boundaries of organization and inventory and gather data on Scope 1, Scope 2, and Scope 3 sources emitting GHGs.
  • Inventory may be carried out independently or with the help of a consulting firm.

Obtain certification

What is obtainment of certification?

That is the process of a third party reviewing a company’s carbon inventory report and issuing a review report or statement.

Commonly seen certifications include ISO 14064, ISO 14067, and PAS2060.

  • ISO 14064: It mainly audits a company’s carbon consumption, and comprises two types:
    • ISO 14064-1 (Basic inventory): It mainly assists enterprises to define GHG emission boundaries; quantify GHG emissions; and establish GHG management procedures.
    • ISO 14064-2 (Carbon reduction actions): It mainly assists enterprises in developing projects stipulating GHG emission reduction goals.
  • ISO14067: It mainly audits product carbon footprint by using science-based approaches to calculate total direct/indirect emissions throughout the "product life cycle", from raw materials purchase, design, manufacturing, packaging, shipping, marketing, use by consumers, to disposal.
  • PAS2060: It helps enterprises neutralize their carbon emissions or product carbon footprint through voluntary reduction and offsets.

Setting Carbon Reduction Goals

Setting self-goals

Ordinary enterprises may set carbon reduction goals at their will, e.g., annual reduction in carbon emissions by 5%; doing so can be advantageous as they can tailor the goal according to their state of operations, but it might not be aligned with internationally accepted ones. Therefore, most large enterprises refer to the standards promulgated by international initiative organizations. Below is an example taken on SBTi, an international initiative partnership.

Participation in SBTi, an International Initiative Partnership

What is SBTi?
  • SBTi stands for Science Based Target initiative, which is a partnership between the United Nations Global Compact, World Resources Institute, and World Wildlife Fund.
  • Science-based approaches are adopted for the calculation of a reasonable carbon emission credit for specific industries and companies; this allows them to establish targets for carbon reduction on the basis that the global temperature rise will not exceed 1.5°C.
Participation Process?


Set SBTs

Submit targets and complete review

Disclose carbon reduction targets externally

Disclose execution progress every year

E.SUN setting SBTs

E.SUN FHC was the first financial institution in Taiwan and second in Asia to pass SBT review. The scope of emissions included the business operations of E.SUN and its investment and financing positions, which are most critical. E.SUN systematically and strategically moves towards its goal of limiting global warming to 1.5°C and achieving net zero emissions by 2050, which is aligned with the 2050 Net-zero Emissions objective.

You may also join E.SUN ESG and sustainability initiative

E.SUN ESG and sustainability initiative participants setting concrete goals to mitigate climate change will be provided with consultation, initiative column, and invitation to participate in CSR activities.

Carbon Reduction Strategy

Scope 1: Carbon Emissions Reduction from Operations

Scope 2: Electricity Conservation and Use of Renewable Electricity

Scope 3: Supply Chain Management