Enviromental Protection

TOP

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. In 2019, SinoPac Holdings continued to adopt the ISO14001:2015 Environmental Management System and expanded the scope of ISO 14064-1:2018 GHG Inventory. The Company also introduced ISO 50001:2018 Energy Management System for the first time and obtained external certification to continuously optimize the internal energy management.

In 2019, the Environmental Sustainability Team was tasked to achieve the two sustainability commitments - "mitigate and adapt to climate change" and "promote inclusive growth." Accordingly, three action plans have been developed,namely, promote climate change mitigation actions, enhance supply-chain sustainability management, and promote green procurement and a sustainable consumption and production model, and specific short, medium and long term goals were set in line with SDG 13: Climate Action, SDG 8: Decent Work and Economic Growth, and SDG 12: Responsible Consumption and Production under the UN SDGs to be followed by the subsequent operation of SinoPac Holdings and its subsidiaries. To reduce GHG emissions and energy consumption, SinoPac Holdings strived to optimize the energy management mechanism while working on procurement. SinoPac Holdings also conducted the supplier audit and organized the first Supplier Conference with the aim of supporting suppliers that produced eco-friendly products with low carbon emissions through concrete action such as green procurement and supplier management and hoped to expand the influence on the supply chain, jointly contributing to the sustainability of the environment.

● Greenhouse Gas Management

Since 2018, SinoPac Holdings has implemented the greenhouse gas inventory using the operational control approach to obtain information on total greenhouse gas emissions of SinoPac Holdings and its subsidiaries. Such information is used to set carbon emission reduction targets for the effective management of carbon emissions in the future. SinoPac Holdings has set an annual target of 1% carbon reduction and a target of 7% carbon reduction by 2025 from the base year in 2018. In 2019, SinoPac Holdings completed the GHG inventory for its seven office buildings based on the GWP values from the Fourth Assessment Report of the IPCC published in 2007. The coverage of ISO14064-1:2018 GHG Inventory increased from 16.2% to 40.3%, reaching the 2025 target of 40% ahead of schedule. In addition, Scope 1 and Scope 2 GHG emissions were reduced by 9.3% in total, with per-capita emissions down 9.2% from 2018, showing great progress and results in the overall energy management. In 2020, SinoPac Holdings will continue to implement carbon reduction management by increasing the coverage of ISO14064-1 certification to 60%, checking two items of Scope 3 GHG inventory and completing external verification, tracking SBTi methodologies for financial institutions, and making the first response to CDP.

● Energy Conservation and Carbon Reduction Measures and Performance

● Results of the Paperless Operation

● Waste Management

Waste from the office buildings of SinoPac Holdings and its subsidiaries is mainly domestic waste. Recyclable waste is divided into four categories: paper, bottles, iron and aluminum cans, and IT equipment. All general and recyclable waste is shipped by qualified contractors to incinerators or recycling sites for disposal. Digital data related to customer information is also kept secure and confidential and destroyed in accordance with the internal rules and procedures. In 2019, SinoPac Holdings started to calculate total waste from the seven self-owned buildings based on the actual weight, and the total weight of waste produced from business operations reached 358.6 metric tons.

 

Reviewing Suppliers for CSR Management

In 2018, SinoPac Holdings initiated the supply chain sustainability management plan, which incorporated ESG criteria into relevant supplier policies. It also invited suppliers to sign the Supplier Corporate Social Responsibility Commitment, working together to fulfill corporate social responsibility, promote environmental sustainability, and maintain basic human rights. Through joint efforts, the Company aims to achieve a balance between the economy, the environment, and society. In 2019, 71.6% of our suppliers signed the Supplier Corporate Social Responsibility Commitment, beyond the preset goal (60%), and 100% of our new suppliers became the signatories. In 2020, SinoPac Holdings will continuously increase the proportion of suppliers signing the Supplier Corporate Social Responsibility Commitment and set the goal at above 80%. SinoPac Holdings also amended the Procurement Management Guidelines by taking ESG criteria into account regarding the award of bid. In addition, criteria for giving extra points were added to the supplier evaluation based on the risks in high-risk industries to encourage suppliers that fulfilled their corporate social responsibility.

In 2019, SinoPac Holdings invited 224 suppliers (65% of all suppliers) to conduct the self-evaluation on sustainability risks. More than 70% of our key suppliers participated in the assessment. The risk assessment covered labor rights, occupational safety and health, environmental protection, and business ethics. During the assessment, suppliers are assessed whether they complied with relevant laws and regulations, formulated policies, management systems, and training programs, and had any violations in each of the above four dimensions.

In the second half of 2019, the Company further conducted sustainable due diligence and ESG audit for the first time on 10 suppliers based on the suppliers' self-evaluation results. The audit facilitated internal and external engagement on ESG issues. For internal management, it effectively increased the procurement staff's ESG awareness. Externally, it conducted on-site audits to further engage ESG issues with our suppliers. SinoPac Holdings learned from suppliers with outstanding performance in ESG implementation and discussed improvement with suppliers with insufficient ESG awareness and implementation. The first Supplier Conference was held in December 2019. Through multi-channel engagement, SinoPac Holdings and its suppliers joined forces to fulfill corporate social responsibilities.

Local and Green Procurement Policy and Quantitative Results

In 2019,the total procurement amount of SinoPac Holdings and its subsidiaries is NT$2.251 billion, of which the local procurement amount from domestic suppliers registered in accordance with relevant regulations in Taiwan is NT$2.163 billion, accounting for 96% of the total procurement amount. To put SDG 12 "Responsible Consumption and Production" into practice, SinoPac Holdings actively responds to Green Living and Consumption Policy promoted by the Environmental Protection Administration, which is to prioritize the purchase of products with environmental protection marks, energy conservation and water conservation marks recognized by the government in our procurement. For other eco-friendly products, SinoPac Holding's green purchase amount reached NT$129 million in 2019, accounting for 5.7% of the total procurement amount. The main purchase included eco-friendly and energy-conserving equipment, green building materials, and products with carbon footprint certifications. For example: SinoPac Holding's 2019 Shareholders' Meeting Handbook and 2020 New Year's supplies (notebooks and calendars) all use FSC-certified paper to support green procurement and environmental protection products with practical actions; Bank SinoPac was awarded the “Corporate Green Procurement Excellence Award" by Department of Environmental Protection of Taipei City Government in 2019 for the second consecutive year. With 2019 as base year, SinoPac Holding sets a short-term goal of increasing the proportion of green procurement by 1% per year. The proportion of green procurement is expected to increase to 6.7% by 2020.

Management Policy and Response Strategies for Climate-Related Risks and Opportunities

●Governance Framework for Climate-Related Risks and Opportunities

The Sustainable Development Committee of SinoPac Holdings stays up-to-date on domestic and overseas trends in sustainable development issues and climate change, formulate sustainability guidelines. The task forces under the committee have formulated action plans corresponding to the commitment to Mitigate and Adapt to Climate Change: the Corporate Governance Task Force is responsible for implementing the TCFD framework, and includes scenario analysis and financial quantification on transition/physical risks of climate change as its mid- and long-term goals; the Customer Relations Task Force is responsible for supporting the development of the renewable energy industry through products and services, developing green sustainable finance, and striving to raise customers’ climate awareness; the Environmental Protection Task Force is responsible for GHG and energy management, taking climate change mitigation action in daily operations; the Employee Welfare Task Force and Social Involvement Task Force are responsible for organizing internal and external education and training sessions and seminars to raise the climate awareness of employees and the public.

●Management Procedures for Climate-Related Risks and Opportunities 

SinoPac Holdings follows the TCFD guidelines to improve management mechanisms of SinoPac Holdings and its subsidiaries for climate-related risks and opportunities, and to establish management procedures for climate-related risks and opportunities. Management procedures can be divided into four steps including compiling a list of risks and opportunities, identifying risks/opportunities of subsidiaries, identifying risks/opportunities at group level and proposing response strategies, and disclosing climate-related risks/opportunities and response strategies.

● Energy Conservation and Carbon Reduction Measures and Performance
● Results of the Paperless Operation