Risk Management

  • Governance
  • Strategy
  • Risk Management
  • Metrics and Targets
Risk Management

Please refer to Chapter 3 "Management of Climate Risk" of the "2022 TCFD Report" for more details.

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.

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."