Sustainable Financial Products and Services

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SinoPac Holdings and its subsidiaries incorporated ESG factors on their core business to develop complete and professional financial products and services, and create a green financial ecosystem. SinoPac Holdings focuses on Energy Generation (Solar Energy Plant), Energy Storage, Energy Saving to create a green living environment for individuals and corporations. Starting with solar photovoltaic energy generation equipment financing, the Company continue to develop green ecosystems in different fields, search for business opportunities in various risks, and link together subsidiaries to plan green financial products, driving the development of green industries through core financial businesses, including financing, investment, underwriting, and asset management. SinoPac Holdings will also continue to search for cooperation opportunities with companies focusing on Energy Generation (Solar Energy Plant), Energy Storage, Energy Saving.

Green Infrastructure Finance

●Financing for Corporate Solar Energy Plants

Bank SinoPac supports the government's green energy policy. Planning of the " Solar Photovoltaic Energy Generation Equipment Financing " project began in 2012 and the program was launched in 2013, which a history of 9 years until now. In 2020, the Company further expanded on to the fishery and electricity symbiosis model, and also created the first framework for green energy trading financing project. In 2021, Bank SinoPac assisted the Power Master Group in building the largest rooftop solar photovoltaic energy system in Shulin Industrial Park, New Taipei City. The system has an installed capacity reaching 2MW and opened up a new era for solar photovoltaic energy industry in Taiwan.
As of the end of 2020, Bank SinoPac had assisted domestic companies with setting up 4,594 solar energy plants with a total installed capacity of 1,412.7MW, which is equal to the annual electricity consumption of approximately 546,000 households (4 people). Annual growth of solar photovoltaic installed capacity reached 42% and had a market share of approximately 24%. As of the end of 2020, the balance of loans to domestic and overseas financing for corporate solar energy plants was approximately NT$39.416 billion, including 2 syndicated loans that Bank SinoPac served as the lead arranger for in 2020. The syndicated loans assisted the installation of solar energy facilities in farmland unsuitable for cultivation and had a total amount of NT$6.71 billion. This achievement received the “Top Solar System Award” from the Bureau of Energy, Ministry of Economic Affairs for 5 consecutive years between 2016 and 2020. Bank SinoPac is the only bank in Taiwan to win this award for 5 consecutive years, and further won the “Special Award for Renewable Energy Sectors” by the Financial Supervisory Commission for successful development of financial services for the solar photovoltaic energy industry in 2020.

Innovation performance in 2020

Promotion Results of Solar Photovoltaic Energy Financing in Key Counties and Cities in 2020

 

 

 

●Financing for Household Solar Energy Equipment

Due to the emphasis on renewable energy and reducing daily expenses, individuals and families have been installing solar photovoltaic energy equipment on their rooftops in recent years, in order to lower their dependency on electric power from Taiwan Power Company, as well as their electricity bills. Bank SinoPac plans to provide a standard product with fast approval through a project or specific distribution channel. The maximum amount of loans is 90% the appraised price of solar photovoltaic equipment, and the repayment period may be as long as 15 years, significantly lowering the barrier and increasing the willingness of investors to install solar photovoltaic equipment on their rooftops. As of the end of 2020, loans were provided for 239 solar energy plants of individuals with a total installed capacity of 10.29MW, and the outstanding amount of financing household solar energy equipment was NT$294 million.

●Solar Energy Plant Financing during the Construction Period

SinoPac Leasing began providing short-term project financing for the construction period of solar energy plants starting in the second half of 2018 and provides companies with bridge loans to lift their funding pressure. Once construction and grid connection are completed, the power plants will switch to mid-term and long-term loans. As of 2020, SinoPac Leasing partnered with 202 solar energy plants and provided loans reaching NT$1.54 billion. The outstanding amount at the end of the year was NT$573 million.

●Insurance for Green Enterprises

Bank SinoPac also actively provides corporate insurance needed by green industries to continue supporting the transformation of solar photovoltaic energy companies. It offers 4 insurance products, including electronic equipment insurance, machinery insurance, and erection all risks insurance for accidents involving power generation equipment, and public liability insurance for accidents that may occur during the operation period of power generation equipment, so that clients can obtain complete coverage when expanding their green financial operations. The power generation equipment related insurance provided by Bank SinoPac accurately responded to market trends, and it has assisted 507 companies with insurance enrollment by 2020, with premiums reaching NT$37.5 million.

●Bank SinoPac's engagement results from promoting the green energy policy in 2020

●ESG Bonds Issued

Bank SinoPac issued Green Bond with a total amount of US$45 million and NT$3 billion in 2017 and 2019 respectively. The funds were used for loans to energy conservation and environmental protection investment plans, taking action to support the renewable energy and eco-friendly industries. Bank SinoPac issued the first Sustainability Bond in Taiwan in 2020 with an amount of NT$1 billion in total, accounting for 6.25% of all bonds issued in 2020. The funds raised are not only used to assist the development of renewable energy and energy technology, but also for social welfare investment plans, in order to create employment opportunities and prevent unemployment caused by social and economic crises. Bank SinoPac provides low interest loans under the government policy to subsidize interest, supporting SMEs that have been impacted by the pandemic since 2020 to obtain working capital and pay employee salaries during difficult times.

●Financing for Eco-Friendly Textile Industries

Bluesign is the most commonly used environmental protection standard with the most complete requirements among environmental protection certifications for the global textiles industry. Bank SinoPac provides loans to domestic textiles companies that intend to apply for Bluesign and assists textiles companies with their green transformation.

●ESCO Energy Storage Equipment Financing

SinoPac Leasing became a member of the matching platform of the Taiwan Association of Energy Service Companies (ESCO) in March 2019 and began partnering with companies in ESCO in October 2019.

●Biogas Power System Financing

Bank SinoPac supports the government's renewable energy policy goal, and SinoPac Leasing developed the equipment leasing for energy storage system in biogas power system business in 2020 to encourage different ways of power generation. Biogas power not only allows wastewater from animal husbandry and excrements from livestock to be utilized, but also allows kitchen waste, domestic sewage, business wastewater (e.g. food industry and paper industry), discarded vegetable and fruit, and other organic waste to be used for renewable-energy-based electricity generation.

●Electric Vehicle Loans

Bank SinoPac supports clean energy in Taiwan in response to the government's "Air Pollution Prevention Action Plan," and encourages customers to purchase low carbon emission (electric, hybrid) vehicles, providing preferential loans that can be repaid in up to 60 instalments.

●SinoPac SPORT Card

The "SinoPac SPORT Card" offered by Bank SinoPac is the first credit card in Taiwan to offer perks points for calories burned. The product uses a new concept that combines "big data, social network, cloud computing, and wearable devices". To develop cardholders into the habit of exercise, cardholders only need to visit the activity website to bound their wearable device, and the system uses IoT technology to provide perks points based on the number of calories burned each day, using exercise to create a better life, and allowing cardholders to accumulate wealth while improving their health. The "Fun Sport" App was downloaded approximately 74 thousand times in 2020, and members walked approximately 93,620,000 km, burning approximately 3.511 billion calories. The transaction amount of SinoPac SPORT Card was approximately NT$833 million in 2020, and the outstanding amount was NT$170
million at the end of the year.

●Provide advisory services on ESG topics for green bonds underwriting service and securities listing underwriting/guidance service

Bank SinoPac and SinoPac Securities incorporate ESG topics into the investment analysis and decision-making process of its bonds underwriting service according to the “Responsible Investment Management Guidelines”. The subsidiaries understand the background of issuers and performance in each ESG aspect through the KYC process, and avoid providing services to controversial industries or companies. For high-risk, sensitive industries or companies investments must be throughly evaluated, more mindfully analyzed and explained, require higher level of authority for approval, the ratio of positions must be controlled, or engage in shareholder activism. Also, an exceptions management process must be established to prevent having a material negative impact on the external environment or society.
When SinoPac Securities is providing clients with consultation for securities listing or raising capital, it conducts CDD/KYC according to rules governing review of securities listings and evaluation and inspection procedures of the competent authority, and incorporates ESG factors such as implementation of corporate governance, major labor-management disputes, and major environmental pollution into the consultation, review, and evaluation process. SinoPac Securities continues to search for opportunities to serve as the underwriter for securities listings of environmental protection and green energy enterprises. As of the end of 2020, SinoPac Securities provided consultation to 2 companies that focus on environmental protection technology and renewable energy development, namely Revivegen Environmental Technology Co., Ltd. and HD Renewable Energy Co., Ltd.

Wealth Management Business

●Issuance of ESG Funds

●ESG Fund Sales

Fund products provided by Bank SinoPac and SinoPac Securities include eco-friendly funds that focus on green energy, water resources, sustainable resources, and climate change; funds that cross over environmental and social issues; issue based funds that involve multiple ESG aspects, including sustainable energy, smart economy, and social responsibility, providing retail banking and wealth management customers with a wider selection of investment options that give consideration to ESG.
In response to the spirit of ESG investments, all of the 35 and 22 domestic securities investment trust companies that Bank SinoPac and SinoPac Securities work with, respectively, have signed the statement of compliance with the "Stewardship Principles for Institutional Investors." Furthermore, all 39 of the offshore fund asset management institutions that Bank SinoPac (32) and SinoPac Securities (7) are working with are in compliance with the “Principles for Responsible Investment (PRI)”.

●ESG Investment Analysis Reports on Individual Stocks

SinoPac Securities Investment Service Corp. included the reports of individual stocks into the sustainability evaluation system in 2020, and released the first ESG research report by a securities investment service company in Taiwan, helping overseas institutional investors understand the ESG performance of Taiwanese companies. Customers of SinoPac Securities can use the online order platform to submit an application on the website of SinoPac Securities Investment Service Corp. for an ESG research report, which will allow them to better understand aspects of ESG investments and raise their ESG awareness. As a means for SinoPac Holdings to engage with customers, this reached 76.37% of customers in 2020, which is the ratio of SinoPac Securities customers who place orders online to the total number of customers (excluding dormant accounts).

●Plan to Develop ESG Assessment System

SinoPac Securities Investment Service Corp. worked with a third party institution at the beginning of 2021 in establishing the SinoPac+ ESG assessment system, which comprehensively evaluates the sustainability performance and risks of companies. The SinoPac+ ESG assessment system established industry indicators and cross-industry common indicators based on the SASB industry standards and SASB SICSR, and selected SASB sustainability issues that public companies in Taiwan are all concerned about. The Company referenced international standards related to sustainability and used the CSR Report (or Sustainability Report) of companies to evaluate their ESG performance. As of February 2021, SinoPac Securities Investment Service Corp. has completed the ESG assessment of 30 public companies, and it will continue to increase the number of companies evaluated, in order to provide investors with even more ESG reports on individual companies and industry reports.