CHIMEI, the global leader of performance materials, issued the first sustainability-linked bond (SLB) in Taiwan today. The amount of the 5-year SLB issued was NT$1 billion. The listing ceremony was held in the Taipei Exchange (TPEx) and was witnessed by the Financial Supervisory Commission, TPEx, CTBC Bank, and Ernst & Young. The SLB symbolizes that the development of sustainable finance has reached a new milestone, and also shows CHIMEI's commitment to sustainability, ESG, and net zero emissions.

CHIMEI previously issued NT$5 billion in green bonds in 2018, the most in Taiwan at the time. CHIMEI once again led Taiwan by issuing the first SLB, President Chao Lin-Yu of CHIMEI personally attended the ceremony and said: "CHIMEI has monitored environmental sustainability issues for years, and enthusiastically implements any innovative sustainability projects that are friendly to the Earth. CHIMEI not only showed its support for sustainable finance by actively participating in the issuance of the first SLB, but also declared its determination to jointly work towards net zero emissions with the world by disclosing two sustainability performance targets (SPT): greenhouse gas (GHG) reduction and reclaimed water rate."

The interest rate of the SLB issued by CHIMEI is linked to two SPTs, specifically GHG reduction (Scope 1 and Scope 2) reaching 16.8% in 2025 compared to 2021, and reclaimed water accounting for 80% of water used for production in 2025. The two SPTs are aligned with the path set by CHIMEI under the Science Based Targets initiative (SBTi), and are higher compared with the industry average. If the SPTs are not achieved by the target year, the SLB will pay additional interest to investors. Furthermore, whether or not the SPTs are achieved will be verified by a third party institution, showing CHIMEI's determination to achieve energy conservation and carbon reduction as well as water reuse targets.

CHIMEI is the first petrochemical company in Taiwan to support the SBTi, and will dedicate its efforts to achieving the goal of "Net Zero by 2050" through energy conservation in processes, installation and use of clean and renewable energy, development of recycled products, use of biomass materials, and investment in the development of carbon capture and utilization (CCU) technology.

CHIMEI not only built the largest EDR reclaimed water system in Taiwan, which generates reclaimed water through recycling and treatment of the water it uses, but also signed a water use contract with the Water Resources Bureau of Tainan City Government. Once Tainan City Rende Reclaimed Water Plant begins to supply reclaimed water, 80% of CHIMEI industrial water use will be supplied by reclaimed water, which will reduce tap water use by approximately 3.63 million tons a year, equal to the amount of water in 2,000 standard swimming pools or the water consumption by 9,000 households. CHIMEI is actively taking action to achieve a circular economy, and the stable supply of reclaimed water will lower the company's operational risks during a drought.

CHIMEI upholds the vision of "Clean & Green" and continues to exert its influence, working with upstream and downstream supply chain partners to find more opportunities for recycling and reuse as well as carbon reduction. CHIMEI hopes to become a global leader in sustainability partnerships, and work together with the world towards net zero emissions.