A conversation with Joseph N.C. Huang, Chairman of E.SUN Commercial Bank

E.SUN's journey to net-zero using science-based targets

Case Study
6 minute read
July 31, 2024

Client

E.SUN

Industry

Banking

Our role

Advising on science-based target setting

E.SUN, one of Taiwan’s leading commercial banks, is deeply committed to corporate sustainability, aiming to achieve 100% use of renewable energy by 2030 and net zero by 2050. In 2022, working with PwC Taiwan, E.SUN became the first bank in Taiwan and the third in the world to be validated by the UN-backed Science-Based Targets initiative (SBTi). E.SUN now has a clearly defined, measurable pathway to reach its 2050 net-zero goal, putting it in the vanguard of international banks seeking to play their part in combating climate change.

Joseph N.C. Huang

Net zero is a global goal that requires cooperation from governments, industries, and businesses worldwide. E.SUN has committed to becoming a net zero carbon emission bank by 2050.

Since 2021, E.SUN has been working with PwC on the SBTi project. At that time, no bank had yet completed goal setting, so the challenge was very high. This not only required learning the latest methodologies, but also creating the best practices for E.SUN before any examples can be followed.

This will have a profound impact on the business. This requires knowledge, tools, mindset changes, and execution to accomplish.

Christine Chang

PwC team established a detailed progress plan for each stage based on the project goals, assisting to outline each small goal to enable the path to E.SUN's final goal: more concrete and implementable.

Joseph N.C. Huang

PwC combine the power of technology and team talent, utilizing a large amount of corporate data for collection and analysis to establish reliable calculation methods and rational benchmarks.

Christine Chang

PwC continuously shares cutting-edge international sustainability trends and knowledge with E.SUN. This helps enhance the overall sustainability literacy of E.SUN's employees.

Joseph N.C. Huang

After setting and getting the approval from SBTi, we have been invited to participate in multiple external forums to share E.SUN's SBT experience, encouraging more Taiwanese companies to join the SBT initiative. We are dedicated to combining climate action with finance to build a more resilient social system and let the world see Taiwan.

What were the main challenges for E.SUN in developing SBTs?

“To achieve our net zero goal, we needed to calculate the bank’s carbon emissions, set science-based targets, develop a carbon reduction strategy, and regularly review our progress. We began working with PwC Taiwan on the SBTi project in 2021, at a time when no bank in Taiwan had completed the process of setting a net zero goal. We had to learn the latest methodologies and then create the best practices for E.SUN, without having any examples to follow.”

In what ways did PwC Taiwan’s SBT solution leverage the strengths of its technology and its people?

“We had to set up realistic, industry-representative emissions factors to estimate the carbon emissions generated by E.SUN’s lending and investment targets. This was a challenge because the concept and calculation methodology for Scope 3 financed emissionsOpens in a new window were new to us.

PwC Taiwan’s team used technology to collect and analyse large volumes of corporate data to establish reliable calculation methods and rational benchmarks for financed emissions. These helped us to quickly identify erroneous information and correct it in a timely manner. It also contributed to creating a robust, stable platform for calculating E.SUN’s Scope 3 emissions from lending and investment banking.”

Sharing expertise and breaking down goals into smaller objectives: How we helped

Calculating Scope 3 financed emissions

To establish a solid foundation for net-zero transformation, PwC Taiwan worked with E.SUN to put in place processes that broke down complex sustainability goals into smaller objectives. For example, E.SUN needed to develop a robust calculation methodology for its Scope 3 financed emissions to accurately track the bank’s progress, and the process was broken down into four steps:

Collection of corporate carbon emissions data
Calculation of attribution factors for each asset class
Subsequent financed emission management
Emissions reduction planning

Improving E.SUN’s sustainability literacy

E.SUN also wanted to increase the level of sustainability literacy and knowledge in the organisation, so PwC Taiwan shared cutting-edge sustainability expertise in the following key areas:

The financial industry’s response to Task Force on Climate-Related Financial Disclosures (TCFD)
Global trends in Science-Based Targets (SBT)
The concept and calculation methodology for Scope 3 financed emissions

Preparing E.SUN for future success

To build up in-house capabilities for the future, PwC Taiwan’s approach was to create upskilling opportunities at each net-zero milestone. Working in this way gave E.SUN a clear understanding of why tasks should be approached in a certain way, raising standards and engagement with sustainability by passing on knowledge throughout the organisation.

How is E.SUN’s SBTi project benefiting Taiwan’s business community and broader society?

“Since our validation, we have been invited to share E.SUN’s SBT experience in multiple external forums, encouraging more Taiwanese companies to join the initiative and help Taiwan’s progress towards a more sustainable future.”

Sustained outcomes:

With PwC Taiwan’s support and advice, E.SUN received its SBTi target validation in March 2022, becoming the first bank in Taiwan and the third in the world to complete the SBTi review.
PwC Taiwan has made additional recommendations to help E.SUN reduce its carbon emissions further by setting medium-term SBTs with clear execution plans.