Chairman's Message

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Looking back at 2020, COVID-19 and extreme weather dominate our collective memory owing to their profound influence on politics, economy & trade, and lifestyles worldwide, despite ongoing efforts since the turn of the century to prepare for such potentialities. It’s time for urgent action to safeguard the Earth and its inhabitants.

Adhering to our five-year plan to transform sustainability concepts into corporate action, SinoPac Holdings focused on three commitments in 2020: Mitigating and Adapting to Climate Change, Reducing Inequality, and Promoting Inclusive Growth, corresponding to eight of the 17 targets outlined in the United Nations’ 2030 Sustainable Development Goals (SDGs).

To Mitigate and Adapt to Climate Change, together with external partners, we have been promoting a green industrial chain through our core financial business since 2012. Related products and services, including green bonds, green finance, green investment, and green funds, form the company’s green financial ecosystem. Supporting renewable energy development is the nucleus of our green agenda. In the business of Solar PV financing, our subsidiary Bank SinoPac won the Top Solar System Award hosted by the Ministry of Economic Affairs for five consecutive years and has been the market leader ever since it began promoting the business. It currently has NT$50 billion in loans outstanding related to solar PV financing.

SinoPac Holdings internal mitigation actions include taking a full inventory of Scope 3 GHG emissions and identifying emission hotspots in the value chain. The company will lay a solid foundation by setting Science Based Targets (SBTs), implementing a variety of energy conservation plans, and obtaining ISO 14064 and ISO 50001 certifications. Furthermore, we applied the Task Force on Climate-related Financial Disclosure (TCFD) framework last year and enhanced the risk management and communication of climate exposure for its products, processes, and services. Last year, we responded to the Carbon Disclosure Project (CDP) survey for our first time and received an A- score. We are proud of this accomplishment as the CDP environmental disclosure platform has attracted the most attention from institutional investors worldwide. In the future, we will discuss setting up a net-zero emissions target on this basis and continue to act in an environmentally sustainable way.

Bank SinoPac became the world's 102nd signatory of the Equator Principles (EPs) in February 2020 and has incorporated ESG issues into its lending risk assessment and decision-making process. Depending on the product issued, Bank SinoPac was either the first or among the first banks to issue green bonds, sustainability bonds, and green, social, and sustainability (GSS) bonds in Taiwan, and the bank assisted the Taipei Exchange in setting up a sustainability bond market, thereby increasing the international visibility of Taiwan's sustainability bond market. In April 2020, SinoPac SITC issued the first ESG-themed active fund comprised of Taiwan listed companies and has issued 4 ESG-themed fund products to date.

To Reduce inequality and ensure social justice, we are committed to eliminating unfair inequality found inside and outside of the organization and to protecting the rights and interests of all regardless of gender, race, or socioeconomic status. We believe that improving access to financial services, paying attention to areas where financial services modernization lags, and taking care of the financially underprivileged best utilize the financial industry's advantages. In 2016, we developed the Smart Wholesale Market Transaction Facilitation Platform with the New Taipei City Fruit & Vegetable Marketing Co., Ltd. to facilitate cash flows between merchants and the electronic settlement system of the wholesale market through a cloud system, creating a new business model for traditional markets. As of year-end 2020, we had promoted the platform in eight wholesale markets spanning four categories: fruits and vegetables, fisheries, meats, and flowers. We are currently planning the development of Smart Wholesale Market Transaction Facilitation Platform 2.0 and will promote cloud transactions for agricultural products as part of the overall upgrading and transformation of markets.

In October 2020, SinoPac issued the first credit card offered exclusively to Taiwan’s migrant workers, a financially disadvantaged group comprising more than 700,000 workers that had been overlooked by the financial industry due to a lack of credit records. Bank SinoPac in 2013 launched the Migrant Worker Lending Program for migrant workers with an account for payroll transfers and gradually expanded to customers without a payroll transfer account to meet migrant workers' borrowing needs. Thanks to these actions by Bank SinoPac, migrant workers can make cashless purchases and access the same financial services for Taiwan and across borders that other groups in Taiwan enjoy.

We strive to meet our dual responsibility of maximizing value for our stakeholders and fostering inclusive growth of society through products and services, procurements, employee care, and charity events. Internally, we protect the welfare of our staff and maintain a friendly and happy workplace via career development opportunities, competitive remuneration, and a comprehensive mental and physical health program. We also promote sustainable consumption and production models through sustainable supply chain management, encouraging our business partners to cherish and protect our living environment. Furthermore, we uphold the spirit of "benefitting from society and giving back to society" by implementing public welfare projects and supporting events that promote culture and the arts, fulfilling our corporate social responsibility to the benefit of us all.

Since its founding in 1948, SinoPac has operated on the principle that meeting the needs of others is the key to achieving corporate sustainability and prosperity. Our valuable long-term partnerships underpinned our sustainability and growth over our nearly 70-year history and helped us to maintain our business during the COVID-19 pandemic and extreme weather events of 2020, but the disruptions from the events make it imperative that we rebuild our relationship with mother nature if we are to sustain our business and prosper over the next decades. Mother Earth has rung the bell and SinoPac is answering. Environmental factors are at the core of our decision making process, and we will continue to take strong, meaningful actions that promote human health, prosperity, and environmental sustainability, for the benefit of the company, our stakeholders, and the survival of planet Earth.

SinoPac Holdings, Chairman