100458 100467

Sustainable Finance & Financial InclusionSustainable Finance & Financial Inclusion

Sustainable and Inclusive ServiceSustainable and Inclusive Service

Financial inclusion is an accelerator for economic growth, job creation, and the diversified and balanced development of society. HFC responds to the United Nations Sustainable Development Goal (SDG) 8 “decent work and economic growth” and SDG 10 “reduced inequality” to actively realize financial inclusion and launch diverse financial products and services in alignment with different groups’ and parties’ needs to enable all clients to make good use of relevant financial services and promote the well-being of the public. Financial inclusion is an accelerator for economic growth, job creation, and the diversified and balanced development of society. HFC responds to the United Nations Sustainable Development Goal (SDG) 8 “decent work and economic growth” and SDG 10 “reduced inequality” to actively realize financial inclusion and launch diverse financial products and services in alignment with different groups’ and parties’ needs to enable all clients to make good use of relevant financial services and promote the well-being of the public.

Inclusive services in the last 3 years Inclusive services in the last 3 years

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Year202120222023
ClientsSMEs
Service content
86.0% of the total amount
undertaken for SMEs
91.4% of the total amount
undertaken for SMEs
85.4% of the total amount
undertaken for SMEs
Number of cases served
(Loans and installments)
A total of 4,681 loan contracts
A total of 2,991 loan contracts
A total of 3,529 loan contracts
Total amount
All loans provided amounted
to $14.179 billion
All loans provided amounted
to NT$10.524 billion
All loans provided amounted
to NT$12.296 billion
Non-performing loan ratios 
0.52%
0.83%
0.39%

Note: Non-performing loan ratios = non-performing loan cases/total retained amount. Over the past three years, the quality of the assets has been maintained at a good quality, and the ratio of non-performing loans is less than 1%

Financial Inclusive Action CaseFinancial Inclusive Action Case

HFC is committed to creating a more diverse and inclusive society. Following the World Bank's Inclusive Finance Development Strategy and the United Nations Principles for Investors in Inclusive Finance, we have launched a range of financial products and services tailored to meet the needs of various social groups and communities. Additionally, we encourage our employees to engage in diverse non-financial actions to enhance financial literacy among the public, thereby leveraging financial influence to ensure that all levels and groups in society have access to fair and equitable financial services and resources.HFC is committed to creating a more diverse and inclusive society. Following the World Bank's Inclusive Finance Development Strategy and the United Nations Principles for Investors in Inclusive Finance, we have launched a range of financial products and services tailored to meet the needs of various social groups and communities. Additionally, we encourage our employees to engage in diverse non-financial actions to enhance financial literacy among the public, thereby leveraging financial influence to ensure that all levels and groups in society have access to fair and equitable financial services and resources.

Diverse Non-Financial Actions Diverse Non-Financial Actions

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Green finance Green finance

The World Economic Forum (WEF) mentioned in the Global Risk Report 2023 that in addition to geopolitical turmoil and crises, the pandemic is still raging. The world will also face daunting challenges posed by risks arising from the climate, including extreme weather events and biodiversity loss. We should flip or re-imagine a financial model for the business environment that enterprises will face in the future to make decisions for green and environmental sustainability. At the same time, the National Development Council of the Executive Yuan officially announced the "2050 Net Zero Emission Policy Roadmap" in March 2022, which clearly stated the goal of expanding the use of renewable energy and achieving 100% market share of electric vehicles/electric scooters by 2040. HFC is actively responding to SDG 7 Affordable and Clean Energy and SDG 13 Climate Action. We have launched "Green Installment Products" with the renewable energy businesses in response to the government's 2050 net-zero emissions goal, and are striving to strike a balance between business operations and environmental sustainability.The World Economic Forum (WEF) mentioned in the Global Risk Report 2023 that in addition to geopolitical turmoil and crises, the pandemic is still raging. The world will also face daunting challenges posed by risks arising from the climate, including extreme weather events and biodiversity loss. We should flip or re-imagine a financial model for the business environment that enterprises will face in the future to make decisions for green and environmental sustainability. At the same time, the National Development Council of the Executive Yuan officially announced the "2050 Net Zero Emission Policy Roadmap" in March 2022, which clearly stated the goal of expanding the use of renewable energy and achieving 100% market share of electric vehicles/electric scooters by 2040. HFC is actively responding to SDG 7 Affordable and Clean Energy and SDG 13 Climate Action. We have launched "Green Installment Products" with the renewable energy businesses in response to the government's 2050 net-zero emissions goal, and are striving to strike a balance between business operations and environmental sustainability.

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Amount of approved loans for electric/hybrid vehiclesAmount of approved loans for electric/hybrid vehicles

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Year202120222023Growth Rate compared to 2022
CategoryNumber of approved loans
Amount of loan approved
($100 million)
Number of approved loans
Amount of loan approved
($100 million)
Number of approved loans
Amount of loan approved
($100 million)
Electric vehicles
281
4.69
1,753
15.72
1,030
18.75
+19.3%
Oil-electric vehicles
12,015
91.14
13,148
100.47
15,084
135.94
+35.3%
Electric motorcycles
13,689
15.59
19,400
37.50
6,625
10.98
-70.7%
Subtotal
25,985
111.42
34,301
153.69
22,739
165.67
+7.8%

Loans approved for renewable energyLoans approved for renewable energy

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Year202120222023
Loans provided during the year
(in NT$100 million)
1.09
2.21
1.17
Amount of cumulative loans disbursed
(in NT$100 million)
5.55
7.76
8.93

Note: The identification criteria for the renewable energy industry is based on the business data provided for industrial and commercial registration to the Administration of Commerce, MOEA

Under the trend of net zero carbon emissions, the supply chain is facing the challenge of green transformation, and environmental protection issues such as waste reduction and energy and resource recycling have become the focus of the market. In response to the demand for emerging technologies and equipment, HFC provides equipment financing to clients in the nvironmental protection industry who do not have adequate access to capital, solves the needs of clients for equipment purchases, and provides timely working capital to enable clients to smoothly undertake projects to facilitate the promotion of the environmental protection industry. Some examples are pollution remediation business (including wastewater and sewage treatment industries, waste clearance and treatment industries, and resource recycling and processing businesses), and recyclable materials wholesaling business.Under the trend of net zero carbon emissions, the supply chain is facing the challenge of green transformation, and environmental protection issues such as waste reduction and energy and resource recycling have become the focus of the market. In response to the demand for emerging technologies and equipment, HFC provides equipment financing to clients in the nvironmental protection industry who do not have adequate access to capital, solves the needs of clients for equipment purchases, and provides timely working capital to enable clients to smoothly undertake projects to facilitate the promotion of the environmental protection industry. Some examples are pollution remediation business (including wastewater and sewage treatment industries, waste clearance and treatment industries, and resource recycling and processing businesses), and recyclable materials wholesaling business.

Loans approved for environmental protection industriesLoans approved for environmental protection industries

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Year202120222023
Pollution remediation industry 
(hundred of millions of NTD)
1.26
0.37
2.40
Wholesale of recycled materials 
(hundred of millions of NTD)
0.79
0.46
0.40

Note: The identification criteria for the environmental business is based on the business data provided for industrial and commercial registration to the Administration of Commerce, MOEA

ESG-Linked Syndicated LoanESG-Linked Syndicated Loan

The Company needs to influence more stakeholders and work together to make a difference. HFC actively responds to and promotes sustainable finance by "connecting different stakeholders in the value chain", linking up with "ESG" from the acquisition and use of capital, and co-operating with banks in the signing of sustainability-linked loans. From 2021 to date, the cumulative amount of the responsive sustainability-linked loans has reached $68.8 billion. HFC's latest sustainability linked loan is a three-year, $29.5 billion "HFC sustainability linked syndicated credit facility" signed with a group of domestic banks on January 3, 2024. The loan was organized by CTBC Bank with the participation of 11 domestic financial institutions. The case was finally closed at $29.5 billion, with an over-subscription rate of 148%, which indicates that financial institutions highly recognized HFC's strategic direction of combining operations with sustainability goals. The loan is the biggest fundraising by a single company in the lease installment industry in recent years. In addition to maintaining the business operations, the funds in the sustainability linked syndicated loan would be used to support HFC's green development in connection with several indicative key ESG performance indicators, including the performance of low-carbon vehicles and the constituent of ESG indexes, ESG reports, and green energy development. Through green financing, we will further enhance the green sustainability performance and move toward the net-zero goal. The Company needs to influence more stakeholders and work together to make a difference. HFC actively responds to and promotes sustainable finance by "connecting different stakeholders in the value chain", linking up with "ESG" from the acquisition and use of capital, and co-operating with banks in the signing of sustainability-linked loans. From 2021 to date, the cumulative amount of the responsive sustainability-linked loans has reached $68.8 billion. HFC's latest sustainability linked loan is a three-year, $29.5 billion "HFC sustainability linked syndicated credit facility" signed with a group of domestic banks on January 3, 2024. The loan was organized by CTBC Bank with the participation of 11 domestic financial institutions. The case was finally closed at $29.5 billion, with an over-subscription rate of 148%, which indicates that financial institutions highly recognized HFC's strategic direction of combining operations with sustainability goals. The loan is the biggest fundraising by a single company in the lease installment industry in recent years. In addition to maintaining the business operations, the funds in the sustainability linked syndicated loan would be used to support HFC's green development in connection with several indicative key ESG performance indicators, including the performance of low-carbon vehicles and the constituent of ESG indexes, ESG reports, and green energy development. Through green financing, we will further enhance the green sustainability performance and move toward the net-zero goal.

Promotion of environmental friendliness Promotion of environmental friendliness

To respond to the government’s placemaking policy of recent years, HFC actively planned and participated in the CSR Local Innovation Competition initiated by the National Development Council and PricewaterhouseCoopers Sustainability Services Company Ltd. in Taiwan. HFC partnered with social enterprises Tanosecure Inc. and Palcom International Corporation under the Compal Group to design green leasing products with installment payment services, allowing farmers to access smart eco-friendly farming systems and smart agricultural technologies more easily to transition to smart production and eco-friendly farming. To respond to the government’s placemaking policy of recent years, HFC actively planned and participated in the CSR Local Innovation Competition initiated by the National Development Council and PricewaterhouseCoopers Sustainability Services Company Ltd. in Taiwan. HFC partnered with social enterprises Tanosecure Inc. and Palcom International Corporation under the Compal Group to design green leasing products with installment payment services, allowing farmers to access smart eco-friendly farming systems and smart agricultural technologies more easily to transition to smart production and eco-friendly farming.

Risk Control Process and Review MechanismRisk Control Process and Review Mechanism

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StageScopeOverview of Risk Control Mechanism
Know Your Customer
All products and services
Business units submit reports/system build related KYC information fields. Negative factors filtering for customers: Applicants/business operators with criminal convictions that impact company operations, government-mandated illegal profit activities, media-exposed verified cases that endanger ongoing operations, severe anomalies (such as abnormal repayment records, provisional attachments, injunctions, etc.).
Professional Group Review
Consumer Finance*note1
Different approval KPIs are set based on risk attributes. Low to medium risk ensures efficiency, while medium to high risk enhances review.
Corporate Finance*note2
Risk Cases 
Multidimensional Assessment
Consumer Finance
Focuses on credit checks, financial burden capability, relationship targets, and guarantor credit enhancement.
Corporate Finance
Focuses on operational behavior, financial performance, management team, fund usage, industry development trends (e.g., sustainable and forward-looking renewable energy industries).
Risk Quantification SupportAll products and services
A quantitative scoring mechanism is designed to assist in credit decision-making.
Review Committee
All products and services
Cases with higher exposure or differing opinions are submitted to a review committee for professional deliberation.
Post-loan Credit Monitoring
All products and services
Periodic tracking through external agencies (e.g., the rejection details from the Chinese Credit Information Service).

Note1: Consumer finance is professionally segmented based on product characteristics, such as car/motorcycle/consumer goods installment payments ect.

Note2: Corporate finance is professionally segmented based on customer attributes, such as medical equipment, machine tools, construction, general, and micro-enterprises ect.