Enviromental Protection

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Green Operations

SinoPac Holdings and subsidiaries all positively implement the green operation. The company continues to promote environmental education and the concept of energy conservation, meanwhile replacing older equipment to improve energy efficiency.

The main achievements in 2018 included the formulation of the Environmental Policy and the Environmental Management System Objectivess and Measures which are adopted for compliance of SinoPac Holdings and its subsidiaries. The main building of the headquarter also implemented the ISO 14001 Environmental Management System and ISO 14064-1 Greenhouse Gas standard for the first time and obtained third-party verification and validation. It also initiated a series of employee environmental education seminars and organized 10 training sessions for approximately 1,600 participants. The contents included international standards for climate change, international ESG development trends, environmental management, and greenhouse gas management. SinoPac Holdings fulfills its commitment to the environment from inside the company to contribute to a better life.

In 2018, SinoPac was awarded "2018 Corporate Green Procurement Excellence Award" by the Taipei City Government Environmental Protection Bureau for purchasing eco-friendly products, and adopted FSC-certified paper for the 2018 SinoPac Holdings shareholders' meeting handbook and 2019 new year gifts (notebooks). SinoPac Holdings supported green procurement and products with environmental protection certification through real actions.

● Greenhouse Gas Management

SinoPac Holdings implemented greenhouse gas standard in 2018 to obtain information on total greenhouse gas emissions of SinoPac Holdings and its subsidiaries to facilitate effective management in the future and set carbon emission reduction targets. Scope 1 of greenhouse gas emissions in 2018 only included the gasoline and diesel emissions from official vehicles and it was calculated based on the number of liters in actual use recorded on the CPC Gas Card. Scope 2 was calculated based on the electricity fee used to deduce the electricity consumption and calculate carbon emissions. Greenhouse gas inventory was completed for SinoPac Holdings' Zhonglun Building and Bank SinoPac's Chengzhong Building in 2018. The greenhouse gas inventory used the GWP values from the Fourth Assessment Report of the IPCC published in 2007. The coverage rate was 16.2%. SinoPac Holdings will expand the scope of the inventory in the future and set 2018 as the baseline year for greenhouse gas management.

● Energy Conservation and Carbon Reduction Measures and Performance

● Results of the Paperless Operation

Reviewing Suppliers for CSR Management

SinoPac Holdings launched a sustainable supply chain management plan in 2018. Integrating its CSR standards, SinoPac Holdings developed a Supplier Corporate Social Responsibility Code of Conduct with four dimensions: labor rights, occupational safety and health, environmental protection, and business ethics. SinoPac Holdings and its subsidiaries urged their suppliers to fulfill their social responsibility by the same standards. In the first quarter of 2019, SinoPac Holdings conducted a sustainability risk assessment for 224 suppliers and the coverage rate was 58%. The suppliers accounted for 65.48% of total purchases in 2018. The supplier sustainability assessment will aid SinoPac Holdings in identifying, classifying, and managing major risks in the supply chain in the future. SinoPac Holdings is planning to conduct a due diligence investigation on its key suppliers in 2019, including site visits and information sharing meetings regarding ESG-related managing methods and findings. A supplier conference will be held at the end of 2019 to discuss its policies with suppliers and discuss sustainability knowledge as it relates to the global supply chain. At the conference, suppliers can share their practical experience and discuss possible collaborations.

Local and Green Procurement Policy and Quantitative Results

In 2018, the total procurement amount of SinoPac Holdings and its subsidiaries amounted to NT$1.863 billion, of which 97.7% or NT$1.821 billion was local procurement, while green procurement accounted for 5.1%, or NT$96 million. The main purchasse included eco-friendly equipment, green building materials, and products with carbon footprint certifications. In 2018, Bank SinoPac was once again awarded "2018 Corporate Green Procurement Excellence Award" by the Taipei City Government Environmental Protection Bureau for purchasing eco-friendly products, and adopted FSC-certified paper for the 2018 SinoPac Holdings shareholders' meeting handbook and 2019 new year gifts (notebooks). SinoPac Holdings supported green procurement and products with environmental protection certification through real actions.