Cathay Group: A Model for ESG in Asia

Cathay Group has chosen a path of sustainable development through long-term commitments, a robust governance structure, and substantial investment in technology.

Integrating sustainable development into governance systems.

In the context of global finance facing the dual pressures of climate change and digital transformation, ESG (environment, social, governance) is no longer just a symbolic choice but has become a measure of the long-term governance capabilities of financial institutions.

In Asia, Cathay Group is one of the few corporations that started early and has a deep understanding of the field, with a well-structured and sustainable strategy built across the entire group and its member units.

One noticeable aspect of Cathay's ESG strategy is its root-based approach. The Group has established a Corporate-level Sustainable Development Committee and appointed a Chief Sustainable Development Officer (CSO), a position directly involved in overseeing and coordinating the ESG strategy across the entire system. This structure ensures that ESG is not separate from business operations but becomes an integral part of the board's decision-making process.

Michael Wen, Executive Vice President of Cathay United Bank, shared that ESG is also promoted through community initiatives.

The three strategic pillars are concretized by short-term, medium-term, and long-term goals, with a particular focus on climate risk management, carbon emission reduction, and portfolio shift towards low-carbon investments. Cathay is one of the pioneering financial institutions in Taiwan (China) participating in a series of global initiatives such as Nature Action 100, PBAF (Partnership for Biodiversity Accounting Financials), TNFD (Taskforce on Nature-related Financial Disclosures), CDP (Carbon Disclosure Project), and is committed to building emission reduction targets according to SBT standards and gradually phasing out coal financing.

From a social perspective, Cathay's strategy demonstrates a strong investment. Each year, the Group allocates over NT$100 million to public health initiatives, operating an interdisciplinary Health Lab model and implementing programs such as FitBack, supporting the physical and mental health of its customers. Simultaneously, the Cathay Shield system has been developed to prevent fraud and minimize financial losses in the context of increasing technological risks.

In terms of human resources, Cathay pursues a diversity and inclusion (D&I) strategy, building a multi-generational workforce and focusing on career development for both young and near-retirement workers. This is a significant challenge in aging societies like Taiwan (China).

Notably, Cathay is the first organization in Taiwan (China) to publish an integrated ESG report, simultaneously complying with international standards such as GRI (Global Reporting Initiative), TCFD (Task Force on Climate-Related Financial Disclosures), SASB (Sustainability Accounting Standards Board), and IFRS S1/S2 (International Financial Reporting Standards S1/S2 on sustainability information). Transparent disclosure not only benefits investors but also creates self-correcting pressure on the company itself.

ESG is spreading throughout each member unit.

Faced with challenges such as climate change, an aging population, and labor competition, Cathay Life – the life insurance arm of the group – has chosen an integrated approach, combining smart buildings, digital healthcare , and digital experiences for its employees.

Ms. Janice Hwang, Senior Executive Vice President of the Corporate Sustainability Development Office, shared that ESG is a core development strategy of the corporation.

In the climate pillar, Cathay Life develops a smart office model, encouraging tenants to participate in sustainability goals through real-time energy management and environmental data solutions. In fact, according to market reports, 59% of businesses have already implemented sustainability measures, while 41% expect digital solutions to increase transparency and environmental efficiency.

The Woolgate Exchange building in the UK is a prime example, having simultaneously achieved stringent certifications such as EPC A (Energy Performance Certificate), BREEAM Excellent (Building Research Establishment Environmental Assessment Method), NABERS 4.5 Stars (National Australian Built Environment Rating System), WELL Platinum (the highest certification (Platinum) of the WELL standard, an international building assessment system focusing on health, comfort, and productivity), and WiredScore Platinum (WiredScore international rating system – Platinum). In Taiwan (China), Cathay Life also pioneered the construction of an office building using 100% renewable energy, adhering to its RE100 commitment (a global initiative bringing together corporations committed to using 100% renewable energy in all operations) from the design stage.

Alongside the environment, the human element plays a crucial role. Cathay Life expands the role of insurance, integrating digital healthcare platforms, from prevention to daily health management. Internally, the application of AI and cloud computing helps create a seamless employee experience, enhancing the ability to attract and retain talent in an increasingly competitive labor market.

In the banking sector, Cathay United Bank (CUB) is an extension of sustainable finance in the region, with Vietnam emerging as a key market. As the first bank in Taiwan (China) to sign the Equator Principles and participate in the PRB, CUB has proactively implemented green finance projects, notably financing the BIM wind power project in Ninh Thuan – the bank's first green loan in Vietnam. It is also one of the exemplary renewable energy projects supported by the Asian Development Bank (ADB).

From this milestone, CUB continues to expand its sustainable finance portfolio in Vietnam, including water treatment, green factories, solar power, and supporting local financial institutions in developing green finance and inclusive finance.

Beyond its business activities, the bank also invests in the community, with the ESG Forum in Ho Chi Minh City in 2025, bringing together over 80 guests, and the "Nurturing Great Talents" program supporting more than 22,000 students over the past 17 years.

Ms. Theresa Lin, Deputy General Director of Cathay Life Insurance Company, emphasized that the company considers human health, the quality of human resources, and the application of technology as central to its long-term sustainable development strategy.

Cathay is implementing a Fintech - AIaaS strategy, exemplified in the Vietnamese market. Cathay combines eKYC, AI, and big data, enabling loan approval in just minutes. The CUB Vietnam App, with nearly 790,000 users, is proof of how Cathay combines technology with the goal of inclusive finance, rather than simply pursuing quantity.

Cathay may not be a company that talks much about ESG, but it is a notable case study of how to make sustainable development a core competency. From governance and investment to technology and community engagement, ESG is implemented as a continuous thread. In the context of an increasingly fragmented regional financial market, this is perhaps the long-term advantage that will help Cathay stand firm and go further on its internationalization journey.

Cathay Financial Group is one of the largest financial groups in Taiwan (China), with total assets of approximately US$468 billion (as of September 2025). Key member companies of the Group include Cathay Life Insurance, Cathay United Bank, Cathay Century Insurance, Cathay Securities, and Cathay Securities Investment Trust… all holding leading positions in their respective fields; serving over 15 million customers, equivalent to approximately 66% of Taiwan's (China) population.