Taiwanese bank leverages Evercomm’s AI-powered transition finance engine to turn global standards like PCAF and IFRS S2 into measurable action, empowering CTBC and its clients to lower emissions faster.
As banks take on a central role in financing the sustainability transition, they face increasing pressure to base decisions on data that is consistent, verifiable, and aligned with evolving global standards.
Traditional approaches to transition financing have long faced two persistent challenges: first, a mismatch between how banks assess financed emissions and how businesses measure operational emissions; and second, the manual, resource-heavy process of aggregating Scope 3 data across supply chains.
At the Singapore FinTech Festival 2025, Taiwan’s largest privately-owned bank CTBC Bank and Evercomm, a Singapore-based provider of digital sustainability solutions, unveiled the full operational deployment of their jointly developed AI-powered transition finance engine, PATHMATCH.
PATHMATCH represents a major step from proof of concept to enterprise-scale implementation, helping banks assess the decarbonization impact of loans, manage Scope 3 financed emissions, and track portfolio transition performance in real time.
By creating a consistent, methodology-aligned across view both sides, PATHMATCH establishes a digital foundation for credible, comparable carbon accounting. It seamlessly links capital allocation from financial institutions to the sustainability performance of their clients. It enables banks to move beyond static compliance reporting, using real-time data and AI to identify bankable projects, improve portfolio quality, and design financial products that reward credible transition performance.
At the heart of PATHMATCH is Evercomm’s proprietary AI simulation engine, built on a thermodynamics model that simulates how energy flows across industrial systems to predict emissions with scientific accuracy.
Developed through a S$18.7 million, six-year R&D initiative backed by the Singapore government and validated by 29 international journal publications, the engine runs simulations to provide rolling forecasts and generate tailored decarbonization roadmaps for clients. This enables banks such as CTBC to automate portfolio-wide Scope 3 reporting, reduce manual data processing by up to 1,500 man-hours annually, and more accurately assess transition risks and progress.
Identifying high-carbon lending and investment exposures
Rachael Kao, President of CTBC Financial Holding and Chair of PCAF (Partnership for Carbon Accounting and Financials) Asia-Pacific, commented: “As a financial institution, CTBC stands at the frontline of the sustainability transition, but our confidence is often tested by fragmented data, unverified information and constantly evolving methodologies.”
Since 2020, CTBC has been among the early adopters to disclose financed emissions using the PCAF methodology. With adoption of PCAF, Kao explained, “we can identify high-carbon exposures in our lending and investment portfolio, set achievable science-based targets in mid and long term, and shape our decarbonisation strategy that enables us to manage the progress and to make necessary adjustments along the way.”
Ted Chen, CEO of Evercomm, said: “The next chapter of transition finance is about direction and adaptability, especially in a region like ours where industrialization continues to drive growth. Banks are at the heart of this transformation, and they need practical tools that accelerate measurable emissions reduction.
“We designed our engine to evolve with the market, integrating new data and technologies as they emerge. This adaptability ensures it remains relevant, scalable, and impactful, empowering banks like CTBC and many more to come, to move faster, lower emissions, and finance the transition with confidence.”
The digital bridge
As Southeast Asia navigates the duality between industrial ambition and climate responsibility, Evercomm sees digital infrastructure as the bridge. With Singapore serving as a hub for green-fintech innovation and sustainable finance, the company is leveraging its strategic base to extend PATHMATCH’s framework to banks and corporates across the region.
The aim is to help them adopt globally recognized standards such as PCAF and IFRS S2, while tailoring implementation to local market realities.
By embedding scientific rigor into financial decision-making, Evercomm and CTBC Bank are setting a new benchmark for credible, scalable transition finance. PATHMATCH empowers businesses to align with global climate standards while enabling banks to operationalize transition finance with transparency, efficiency, and accountability.
CTBC’s Kao added: “Beyond developing our own strategy, we are committed to driving and supporting the adoption of PCAF standards across the financial industry in the region.”
She concluded: “Together with Evercomm, we jointly developed PATHMATCH which simplified PCAF implementation, harnessing AI and advanced digitisation to manage Scope 3 financed emission and portfolio transition performance. We will be able to strengthen compliance, manage risks and accelerate sustainable financing with confidence.”
