Recently, Far East Horizon officially passed the rigorous certification of the Science Based Targets initiative (SBTi), making it the first financial institution in Mainland China to achieve this milestone!

The SBTi is a globally recognized authority on corporate climate action, empowering companies and financial institutions worldwide to combat the climate crisis. Far East Horizon’s targets have now been validated by SBTi:

• Operational Decarbonization: Against a 2022 baseline, Far East Horizon commits to reducing Scope 1+2 emissions by 42% by 2030, fully aligned with the Paris Agreement’s 1.5°C pathway;

• Financing Transformation: 88% of Far East Horizon’s portfolio now has temperature-aligned targets. By 2030, the temperature rating of its corporate lending and equity investment portfolio will decrease from 3.2°C to 2.44°C (Scope 1+2) and 2.56°C (Scope 1+2+3) against the 2022 baseline.

Setting Industry Benchmarks for Carbon Targets, Pioneering a New Era of Science-Based Decarbonization

To achieve its SBTi-validated goals, Far East Horizon will implement three action systems to drive full value-chain transformation:

1. Data Foundation & Transparent Governance

• Build a dynamic carbon database for real-time visualization of financed emissions;

• Regularly disclose climate and biodiversity risk management progress under TCFD and TNFD frameworks.

• Leverage ISO 14064-compliant carbon auditing tools and AI-powered energy-carbon management platforms for precise Scope 1-3 emissions tracking and optimization.

2. Sustainable Finance Innovation

• Issued over RMB 80 billion in green bonds/ABS, while fully halting new coal investments non-compliant with Far East Horizon’s Coal Financing Policy.

• Year-on-year growth in financing for renewable energy and low-carbon equipment, with a declining share of high-carbon assets.

3. Zero-Carbon Partnership Program

A "Strategy-Technology-Finance" tripartite solution to empower enterprises in science-based decarbonization:

•    Strategy & Advisory: Custom SBTi-aligned carbon targets and phased roadmaps. Climate risk assessment (TCFD), low-carbon transition consulting, ESG reporting, and rating enhancement. Carbon asset development (CCER/VCS projects), trading strategy support, and tailored training (carbon accounting, ESG governance).

• Technology & Digital Enablement: Green power solutions (distributed PV), energy-saving retrofits (waste heat recovery, equipment upgrades), and Energy Performance Contracting (EMC) with zero upfront investment.

• Financial Tools & Ecosystem Synergy: Innovative sustainable finance products (e.g., carbon-asset-backed financing). A technology-capital matchmaking platform linking global low-tech providers and industrial investors.

Case Studies: Tangible Decarbonization Impact

1. Internal Emission Reductions

l  Construction (CDHORIZON): Fully recyclable prefabricated steel foundations cut emissions by 88% vs. traditional methods;

l  Healthcare (HCHORIZON): LED retrofits across 26 hospitals reduce annual emissions by 1,500 tons;

l  SMEs: Over RMB 20 billion in green financing facilitated, enabling 5,000+ enterprises to transition.

2. External Services

In 2024, Far East Horizon supported a leading non-ferrous metals company (a leasing client) in comprehensive sustainability management enhancement, including greenhouse gas inventory and climate-related issue management improvements, helping the enterprise establish a practical and profitable sustainable development path. We assisted the client in building an ESG governance framework, strengthening cross-departmental collaboration and vertical ESG management depth. Furthermore, we enhanced the company's overall greenhouse gas emission management: Conducted Scope 1 and 2 emission inventories in compliance with ISO 14064-1 and GHG Protocol standards to establish baseline emissions levels for future reduction work, while developing China Certified Emission Reduction (CCER) projects for 200,000 mu of surrounding forestland.

Far East Horizon will join the UN Principles for Responsible Investment (PRI) to co-build Asia-Pacific's green finance ecosystem. Concurrently, we aim to achieve 50%+ green assets by 2030 and publish a "Sustainable Transition Practices Report," continuing to deliver China-originated solutions with global perspective.