Sustainable Finance
In early 2025, TCC Group’s Science Based Target Initiative (SBTi) 1.5°C carbon reduction target-setting was officially approved, making it the first cement company in East Asia to commit to the SBT 1.5°C pathway. The target is to reduce Scope 1 and Scope 2 carbon emissions by a total of 26.8% by 2030 from a 2016 base year. We updated and published our Green Financing Framework (the “Framework”) in 2025. The Framework reflects TCC Group’s latest sustainability commitments and continued efforts to align with the latest international standards and practices in the green bond market, including alignment with the technical screening criteria for cement manufacturing defined in the EU Taxonomy.
The Framework is aligned with the Green Bond Principles issued by the International Capital Market Association (ICMA) and the Green Loan Principles published by the Loan Market Association (LMA). Any green financing instruments launched under this Framework will adhere to the four core components of these principles: (i) Use of Proceeds; (ii) Process for Project Evaluation and Selection; (iii) Management of Proceeds; and (iv) Reporting.
Under the Framework, TCC Group, including its subsidiaries, joint ventures, and associates, may issue Green Financing Instruments to finance or refinance Eligible Green Projects. The categories of Eligible Green Projects under the Framework include:
- Manufacture of Cement
- Circular Economy Adapted Products, Production Technologies, and Processes
- Energy Efficiency
- Pollution Prevention and Control
- Sustainable Water and Wastewater Management
- Renewable Energy
- Clean Transportation
- Green Buildings
- Environmentally Sustainable Management of Living Natural Resources and Land Use
We have engaged ISS Corporate Solutions Inc. to provide a Ssecond-party opinion, affirming the Framework's alignment with the ICMA Green Bond Principles and LMA Green Loan Principles. ISS has confirmed that the Eligible Green Categories contribute positively to relevant UN Sustainable Development Goals (SDGs), align with TCC Group’s sustainability strategy, and effectively manage the environmental and social risks associated with the use of proceeds.
“Crédit Agricole CIB served as the Sole Green Structuring Advisor for the TCC Group Holdings Green Financing Framework.”
In 2023, TCC issued $420 million Green Euro-Convertible Bond in green projects and successfully became the first Taiwanese enterprise that issued a Green Euro-Convertible Bond certified by Sustainalytics. as well as released the Green Financing Framework, which received the Second-Party Opinion from Sustainalytics.
In February 2024, TCC’s subsidiary signed an €800 million unsecured sustainability-linked term loan, which was oversubscribed by 1.5 times. The loan interest rate is linked to the Scope 1 and Scope 2 carbon emission intensity indicators, demonstrating the determination of TCC Group Holdings to carbon reduction and low-carbon transition. We have proactively requested financial institutions to add green or sustainable use indicators to the credit line of the Group. By 2024, we aim to convert over 30% of its credit lines into green or sustainable credits.
In December 2024, TCC pioneered the issuance of the first Sustainability-Linked Convertible Bond (SLCB) in the domestic market, raising a total of NT$8 billion. The bond, structured with a 5-year tenor and a conversion premium of 109.18%, features a yield mechanism directly tied to the company's greenhouse gas (GHG) emission reduction performance targets. As the first cement producer in Greater China to receive validation for its Science-Based Targets (SBT) initiative, TCC has solidified its commitment to achieving carbon neutrality in its concrete operations by 2050. This landmark issuance highlights TCC's leadership in sustainable finance and demonstrates its proactive engagement in driving industry-wide and societal efforts to combat climate change while actively contributing to the global transition towards a low-carbon economy.
In March 2025, TCC successfully issued $350 million in green convertible bonds. The offering was oversubscribed by three times the issuance amount, with over 51% of the allocation distributed to investors across Europe and the United States. Notably, long-only investors accounted for more than 25% of the total allocation, reflecting robust international investor confidence in TCC's strategic commitment to low-carbon transformation and sustainability initiatives.
