E.SUN Partners With Yulon Motor on Biodiversity Sustainability-Linked Loan

Taipei-headquartered E.SUN Bank has announced its support for Taiwanese automaker and importer Yulon Motor, with one of the first sustainability-linked loans in Taiwan to address biodiversity and climate issues.

With a loan volume of NTD 1 billion, (US$32 million) the loan includes key performance indicators related to biodiversity, incentivizing Yulon Motor to restore Taiwan’s native tree species.

Other initiatives linked to the agreement include the reduction of greenhouse gas emissions and the share of renewable energy generation. E.SUN encourages the company to incorporate both climate action and biodiversity conservation into its sustainable development strategies.

The climate and biodiversity-linked loan assesses a company’s performance in climate action and also considers its investment in biodiversity conservation. E.SUN is aiming to encourage companies to adopt diverse sustainable actions and achieve both net-zero and nature-positive goals by 2050 through climate and biodiversity-linked loans.

E.SUN will also provide Yulon Motor with sustainability consulting services, assist in creating nature-based solutions, and expand the impact of finance to lead the way towards sustainability.

Since 2022, a native tree species restoration park has been planned in Yulon Motor’s Sanyi Factory area. The auto manufacturer has worked with the Taiwan Reforestation Association to jointly plan and build the ‘Yulon Mountain Villa.

So far, 16 investigation spots, 209 woody plants records, and 99 seed collections have been completed, and 1,288 seedlings are being restored. Yulon Motors said through the restoration of native tree species in Taiwan’s lowland forests, the natural forest gene pool is being preserved, promoting the maintenance of diversity among native tree species.