Upgrade Net-Zero Action, SinoPac Holdings Releases Decarbonization Policy
[2023.07.17, Taipei News] Global temperature has repeatedly hit new highs. In order to mitigate the impact of climate change, SinoPac Holdings officially released its "Decarbonization Policy" [1] this month (July), announcing gradual withdrawal from investment and lending business related to thermal coal mining and thermal coal-fired power generation, with the goal of achieving comprehensive decarbonization of overseas lending for related sectors by the end of 2030. SinoPac Holdings and Bank SinoPac will also co-host the "2023 Sustainability Foresight Forum" with "Global Views" magazine next Tuesday (25th), invite government and industry representatives to share net zero actions across sectors and implement the Company’s vision of " Together, a better life."
Moving Towards net zero: Expanding Investment and Lending Decarbonization
To support international climate initiatives and actively develop sustainable finance, SinoPac Holdings stated that it has signed the Science. Based Targets. initiative (SBTi) commitment letter [2] in 2022 and has also pledged to reach net-zero emissions from its own operations by 2030 and its entire asset portfolio by 2050. Additionally, the Company also continues to promote green/paperless operations, adopt renewable energy, and actively engaged with investment and financing targets on climate issues, and has planned to gradually withdraw from the investment and lending business of thermal coal and Unconventional Oil & gas [3].
SinoPac Holdings has also indicated that since July 1st 2022, it has ceased financing for new thermal coal and Unconventional Oil & Gas Project [4]; in order to fulfill its net zero commitment and continually enhance decarbonization policies, the newly implemented decarbonization policies, starting this month, expands its scope to include investment and lending business related to thermal coal mining and thermal coal-fired power generation. It is expected to achieve complete phase out overseas companies lending of these sectors by the end of 2030. For existing domestic clients, SinoPac Holdings will provide investment/ lending only if the company commits not to further expand thermal coal-fired power capacity, or the company (or its parent company/group) commits to establish science-based emissions reduction targets (SBT).
Sustainability Foresight Forum: Focusing on Key Strategies
SinoPac Holdings has further pointed out that to assist corporate clients in their net-zero transition, its subsidiary, Bank SinoPac, is at the forefront of investing in carbon reduction financial services. Through a four-step process including carbon emission inventory and verification, energy management, carbon reduction and sustainability, the Bank offers one-stop services that helps companies in energy-consuming equipment replacement, green electricity transaction, green deposits, among other options.
Continuing their commitment to promoting net-zero initiatives, SinoPac Holdings and Bank SinoPac Bank will co-host the "2023 Sustainable Foresight Forum" in collaboration with "Global Views" magazine. The event will feature speeches from Vice Premier of Executive Yuan, Cheng Wen-tsan, and Chairman of SinoPac Holdings, Shi-Kuan Chen, as well as analyses from representatives of government and industries, including Executive Yuan Spokesperson and Deputy CEO of the Office of Energy and Carbon Reduction of Executive Yuan, Lin Tze-luen, Industrial Technology Research Institute, Bank SinoPac, and Delta Electronics. The discussions will cover policies initiatives, technology trends, financial support, and energy transformation in response to twelve key net zero strategies. For detailed information or forum registration, please visit the website of the “2023 Sustainability Foresight Forum."
*On the July 25th, SinoPac will co-host the "2023 Sustainability Foresight Forum" with "Global Views" magazine, inviting government and industry representatives to share insights and experiences on net-zero initiatives.
[1] The Full text of SinoPac Holdings’ decarbonization policy.
[2] A carbon reduction targets verification organization with international credibility, which is founded by the UN Global Compact and Carbon Disclosure Project (CDP) and other institutions. Its main purpose is to encourage the companies worldwide to set science-based carbon reduction targets, collectively working towards the vision of limiting the global temperature increase below 1.5 degree Celsius by 2050.
[3] Including: extraction, processing, manufacturing (including Liquified Natural Gas (LNG) derived from unconventional extractions), exploration and expansion, as well as infrastructure of tar sands, shale oil and gas, ultra-deep-water (UDW) oil & gas, coalbed methane (CBM), arctic oil and gas, extra heavy oil.
[4] Specifically refers to loans intended for specific investment projects, where the loan is used solely for purchasing machinery, equipment, and technology related to the project. The loan repayment is expected to be covered by the cash generated from the project.