SinoPac Holdings Establishes its Main Sustainability Approach for Next Three Years, Leading Green Business Opportunities and Fulfilling its Sustainability Commitment
【2021/11/17, Taipei】To further respond to the "net zero" global trend, SinoPac Holdings has established "leading green business opportunities and fulfilling its sustainability commitment" as its main sustainability approach for the next three years. President Stanley Chu stated that SinoPac will promote this by setting science-based carbon reduction targets (SBTs), gradually increasing green energy use, expanding alternative energy financing, and issuing GSS bonds. SinoPac will also gradually expand the impact of its investment and financing business. The company's aim is to leverage the trailblazing power of the financial industry and lead the industry toward low-carbon transition.
SinoPac Holdings was selected as a component in the DJSI Emerging Markets Index last week. Stanley Chu reiterated that SinoPac Holdings is committed to promoting sustainable development and is focused on three sustainability commitments: eliminating inequality, mitigating & adjusting to climate change, and promoting shared prosperity. In particular, the company promotes responsible finance with regard to mitigating & adjusting to climate change, incorporating ESG factors into investment and financing decision-making. It has made specific achievements, such as having a photovoltaic financing balance of nearly NT$60 billion, launching an SASB-based ESG evaluation system for Taiwan stocks, issuing three ESG sustainability funds, and counseling green enterprises in going public.
Since 2012, SinoPac Holdings has actively responded to the government's renewable energy policies and invested in photovoltaic project financing. As of the end of October this year, its photovoltaic financing balance had reached nearly NT$60 billion. The number of solar power plants the company works with is around 5,503, and its total installed capacity is 1.8 GW. SinoPac expects to sign syndicated loan agreements for further power plants before the end of the year, taking the lead in the market.
In addition, since 2016, Bank SinoPac has received the Top Solar System Award—Best Financial Services Provider from the Ministry of Economic Affairs' Bureau of Energy for five consecutive years, the first and only company in the financial industry to do so. Starting in the photovoltaic industry, SinoPac has continued to innovate its financing structure, undertaking the first green energy trading financing project in Taiwan last year. This year, it completed its first aquavoltaics project financing. Bank SinoPac is also the first bank in Taiwan to issue green bonds and sustainability bonds, with the funds raised used in green investment, social benefit investment plans, and supporting renewable energy and green industries.
SinoPac Securities supports green finance through actual investments and underwriting counseling. Currently, the company invests in renewable energy and energy technology development, agroforestry resources conservation, water conservation & treatment/recycling & reuse, eco-friendly building materials, and other industries. As of November 9th, the stock value of relevant stocks and CBs was NT$174.9 million, and the stock value of green bonds was USD$10.13 million. Regarding underwriting counseling, SinoPac Securities currently counsels three green companies in fields including energy technology, wastewater treatment, and more. Among them, HD Renewable Energy is expected to be listed on the Emerging Stock Market on December 28th.
Furthermore, SinoPac Securities Investment Service actively participates in ESG evaluation, launching the SASB-based ESG evaluation system for Taiwan stocks. It has completed ESG evaluation reports for 155 companies and expects to reach 200 by the end of the year. SinoPac Securities Investment Service has started green product research with institutional investors and plans to launch all-green investment portfolios, enabling individual investors to participate in ESG investment.
SinoPac SITC has issued two ESG sustainable funds for Taiwan stocks—the SinoPac Taiwan ESG Plus Fund in March of last year and the SinoPac Taiwan ESG ETF (00888) in April of this year. As of the end of October, the issue size was NT$6.821 billion and the number of investors was as high as 81,870, having increased nearly ninefold from around 9,000 at initial listing. The fund size has also increased fourfold, earning significant recognition from individual investors. In addition, SinoPac SITC has been approved by the competent authority to raise the SinoPac Smart Vehicle Supply Chain ETF, seizing on the advantage provided by the green and smart electric vehicle supply chain. The company expects to raise funds from November 29th, and will continue to deepen its sustainable investments and make an impact as a professional investment institution.
President Stanley Chu has stated that ESG is not only a matter of social responsibility but also of survival. Companies will be "increasingly marginalized if they do not participate." To further respond to the "net zero" global trend, the board of directors of SinoPac Holdings has recently approved "leading green business opportunities and fulfilling [the company's] sustainability commitment" as the main sustainability approach for the next three years, striving to achieve the target of net zero by 2050.