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.

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.

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.

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.

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