Commercial, Energy Efficiency, GHG Emissions  -  April 2, 2025

CTF Life’s Carbon Reduction Targets Approved by SBTi 

Insurance company CTF Life announced that its carbon reduction targets have been validated by the Science Based Targets initiative (SBTi). 

CTF Life aims to reduce absolute Scope 1 and 2 GHG emissions by 37.8% by financial year (FY) 2029 from a FY2023 base year.

Within its Scope 3 emissions, CTF Life commits to reduce the GHG emissions per MWh from the electricity generation sector within its listed equity and corporate bond portfolio by 59% by FY2029 from the FY2023 base year and to have at least 44.8% of the invested value in its listed equity and corporate bond portfolio allocated to companies that set SBTi-validated targets by FY2029. 

“At CTF Life, we recognise that climate action is both a critical responsibility and a powerful opportunity to inspire and drive meaningful change,” said Man Kit Ip, Executive Director and Chief Executive Officer of CTF Life, in a statement. “CTF Life has been collaborating closely with CTFS to align our overall Net Zero 2050 ambition; the validation of our targets underscores our unwavering commitment to reducing emissions across our operations and investment portfolio. This milestone reaffirms our dedication to building a sustainable future while creating value beyond insurance for our stakeholders.” 

CTF Life will implement the following strategy and actions to achieve its targets:

Decarbonization levers for Scope 1 and 2 operational emissions:

• Electric vehicles (EV) transition: Replace leased/owned fleet with EVs.
• Energy efficiency: Explore opportunities to improve energy efficiency in the office buildings.
• Purchase of renewable energy certificates: With priority focuses on exploring EV transition and energy efficiency, CTF Life may also explore the sourcing and purchase of renewable energy or renewable energy certificates (REC) from local energy suppliers, or International Renewable Energy Certificate (I-RECs) from Asia or other oversea markets to reduce the residual Scope 2 operational emissions. 

The company’s levers for Scope 3 category 15 emissions: 

• Active ownership and engagement strategy: Implement engagement strategy with a phased approach to facilitate real world reductions. 
• Climate financing: Explore ESG-related products and climate financing opportunities.
• Strategy and governance: Establish robust governance structure to drive climate actions. 
• Policy and advocacy: Explore opportunities for collaboration and partnership to scale impacts. 

As of June 2024, the company had already reduced its investment portfolio carbon footprint by more than 15% compared to baseline figures from June 2023. Additionally, CTF Life has invested over HKD3.5 billion in ESG-labelled bonds and decarbonization impact funds, primarily focused on Asia. 

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