Climate-Related Risks Management

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Climate Risk Management

Governance Framework

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.

Management Procedures

To implement the Sustainable Development Roadmap and enhance ESG risk management mechanisms, SinoPac Holdings integrated climate change risks into the Company’s centralized “Risk Management Policy” in 2019 and established the "Guidelines for the Management of Climate-Related Risks and Opportunities" to cover all types/sources of risks and opportunities. The management procedures for climate-related risks and opportunities can be divided into four steps including compiling a list of risks and opportunities, identifying risks/opportunities of subsidiaries, identifying group-level risks/opportunities and proposing mitigation or adaptation measures, and disclosing climate-related risks/opportunities and strategies. Starting from 2021, the Risk Management Division of SinoPac Holdings shall disclose the overall climate change risks in the quarterly Risk Management Report and report to the Risk Management Committee and the Board of Directors.

Results the Identification of Climate-Related Risks and Opportunities

Results the Identification of Climate-Related Opportunities

SinoPac Holdings leverages its core competencies in the finance industry and the market to grasp opportunities created by climate change and actively develop climate-related financial products. Please refer to SinoPac Holdings 2 0 2 0 Corporate Social Responsibility Report 3.1. Sustainable Finance Strategy, 3.2 Sustainable Financial Products and Services, and 3.4 Smart Financing for detailed information on the implementation strategies and explanation of products. Resource efficiency opportunities are concentrated in operations. SinoPac Holdings continues to optimize energy conservation actions to reduce operating costs. Please refer to 5.1 Green Operations for detailed information on implementation strategies and response measures.

Quantification of Climate-Related Physical Risks and Transition Risks

SinoPac Holdings quantified the impact of extreme climate events on its operations and collateral for physical risks based on the results of the aforementioned climate risk assessment; the quantification of transition risks are based on the financial impact of changes in policies and law.