Responsible Investment
SinoPac Holdings actively complied with the six principles under the United Nations “Principles for Responsible Investment (PRI)” in 2019 and established the “Responsible Investment Management Guidelines” for the group's investment, asset management, and wealth management business. The guidelines are applicable to the asset classes including listed equity, fixed income, private equity, infrastructure, property, and derivatives & alternatives. Further, SinoPac Holdings incorporates ESG issues and related risks into the decision-making process of related operations, in order to implement responsible investment.
Formulation of Management PRI Policy
SinoPac Holdings pays attention to the ESG performance of investment targets and incorporates different ESG factors in each phase of investment. Before making an investment, according to different asset classes, SinoPac Holdings first assesses the ESG risks of investment targets, observing the company's ESG performance, and incorporates ESG factors into investment evaluations to determine the investment target's risk level with the references of standards of international organizations and external tools or indexes. For management after making an investment, SinoPac Holdings complies with the voting policy under the “Stewardship Policy”, and in principle opposes any proposal that violates major climate-related issues. The Company engages with investees company to determine potential ESG-related issues that they may face and examines their ESG-related performance regularly.
SinoPac Holdings Principles for Responsible Investment
SinoPac Holdings Responsible Investment Process
Stocks (SinoPac SITC as an example)
Bonds (SinoPac SITC as an example)
Stewardship
For post-investment management, SinoPac Holdings complies with the voting policy under the “Stewardship Policy”, and opposes any resolutions that violates major climate-related issues in principle. The Company engages with investees company to determine potential ESG-related issues that they may face and examines their ESG-related performance regularly.
SinoPac Holdings Post-investment Stewardship Process
Aspect of assessment | Voting | Regular review |
---|---|---|
Financial |
|
|
Non-financial |
|
|
SinoPac Holdings specifies in the “Stewardship Policy”that it must give priority to client interests , avoid conflict of interest, prohibit short-term trading, prohibit improper gains, and follow fair dealing, in order to avoid any conflict of interest in the investment process. SinoPac Holdings continues to manage conflict of interest by educating employees, managing and inspecting individual transactions, using a firewall to manage transaction information, implementing division of authority and responsibility, periodically detecting supervision and management mechanisms, and implementing a reasonable remuneration system.