Sustainability
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Sustainability

Together, a better life.

Together, a better life.

Task Force on Climate-Related Financial Disclosures (TCFD)

Task Force on Climate-Related Financial Disclosures (TCFD)

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2022 TCFD Report Management of Climate Risk

Risk Management

SinoPac Holdings incorporated climate change risks into the "Risk Management Policy" and established the "Guidelines for the Management of Climate-Related Risks and Opportunities" to cover all types/sources of climate risks and opportunities. The subsidiaries have gradually integrated climate risks into business items and established the "Responsible Investment Management Guidelines" and "Responsible Lending Management Guidelines" for investment and loan businesses for management and control. SinoPac Holdings also established the "Natural Disaster Emergency Response Guidelines" and "Supplier Corporate Social Responsibility Code of Conduct" to ensure prudent management of its credit, market, and operational risks. Starting in 2021, the Risk Management Division began disclosing climate change risks (including all metrics for physical risks and transition risks) in risk management reports which are submitted to the Risk Management Committee and the Board each quarter.

SinoPac Holdings uses the three lines of defense in internal control to specify the duties and management mechanisms for the management of climate change risks on each line of defense.

Management of Investment and Financing Risks

SinoPac Holdings formulated a group-level sustainable finance statement in 2022 and has incorporated environmental, social, and corporate governance (ESG) factors into its corporate banking, retail banking, asset management, wealth management, investment banking and brokerage businesses by the Company establishing accordingly management guidelines.

SinoPac Holdings Principles for Responsible Investment and Responsible Lending

Operational Risks from Climate Change

Potential risks to corporate operations from climate change include operational interruptions or personnel injury from physical risks and hazards. In order to reduce possible safety concerns and property losses from physical risks, SinoPac Holdings established a Business Continuity Plan (BCP), and voluntarily established the "Emergency Incident Response Rules" and "Natural Disaster Emergency Response Guidelines."

SinoPac Holdings and subsidiaries operational physical risk management measures

Responsible Unit Item Implementations
Operation Management Division Business locations and self-owned real estate
  • We obtained “commercial fire insurance” and “comprehensive electronics insurance” (including typhoon and flood insurance) to transfer losses. ​
  • We identified offices in high-risk areas. In addition to strengthening dredging pipes, we also inventoried waterproofing and electrical facilities (including wicket gates, uninterruptible power equipment, emergency generators, and machine room locations) to assess their resilience for disaster prevention. We have currently completed inventory of waterproofing and electrical facilities, and will continue to work with our Risk Management Division to refine identification methods for high-risk offices and track transmitted risks.
Operation locations of upstream supplier
  • Raise supplier statement of commitment signing rates to 90% and track supplier climate actions. As of year-end 2022, we achieved a 95% signing rate and met our target. ​
  • Strengthen ESG communications in our supply chain: In 2022, we hosted 2 supplier ESG training sessions which were attended by 55 suppliers, accounting for 41.35% of suppliers. On July 14, we hosted our second supplier conference which was attended by more than a hundred suppliers. On August 9, we hosted a supplier training session related to circular economies. We continue to strengthen supplier communications.
  • Optimize supplier grading system and inventory suppliers with high carbon emissions. We completed on-site audits of 10 suppliers in 2021.
  • We surveyed operating locations of all suppliers at various time points under various RCP scenarios and found that only one supplier was located below sea level under RCP8.5 at the end of the century; this supplier was considered to be “high risk.” Our procurement amount with said supplier is around NT$ 230,000, and we determined it to be highly substitutable and therefore low risk.