Decarbonization Policy
Decarbonization Policy
Face with the risks posed by climate change to the global economy and human survival, the world urgently needs to transition to a low-carbon economy. SinoPac Holdings has pledged to reach net-zero emissions by 2050, and has endeavored to promote green and paperless operations and adopt renewable energy. Sinopac Holdings also actively engages with investment and financing targets, and strives to develop sustainable finance, hoping to collaborate with industries to achieve low-carbon transformation.
SinoPac Holdings (including all of its subsidiaries) has since July 1, 2022 ceased financing for new thermal coal and unconventional oil & gas projects and nor renewing the existing projects. The Company regularly monitors and reviews the implementation of its coal phase-out efforts and continuously improves its coal phase-out business coverage. The Company’s decarbonization policy is summarized as below.
Project Finance *Note1、2
- SinoPac Holdings will not provide any new thermal coal related project finance (in loan or investment), and will reach global phase-out by the end of 2030.
- SinoPac Holdings does not undertake unconventional oil and gas related project finance (in loan or investment), and commits not to undertake such business in the future, therefore has already phased out such business.
Investment/ Lending *Note3、4、5
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Thermal coal mining or thermal coal-fired power generation
- For overseas companies: SinoPac Holdings will not provide new lending to thermal coal mining or thermal coal-fired power generation company (unless the use of proceeds is explicitly for the development of renewable energy or low-carbon transition), and will phase-out such business by the end of 2030.
- For domestic companies: SinoPac Holdings will not provide any new investment/ lending to new thermal coal mining or thermal coal-fired power generation company (unless the use of proceeds is explicitly for the development of renewable energy or low-carbon transition). For existing clients, SinoPac Holdings will provide investment/ lending only if the company commits not to further expand thermal coal-fired power capacity, or the company (or its parent company/group) commits to establish science-based emissions reduction targets (SBT).
- Unconventional oil and gas: SinoPac Holdings does not undertake overseas unconventional oil and gas related corporate lending and commits not to undertake such business in the future, therefore has already phased out such business.
Underwriting Fixed Income Products *Note3、4
SinoPac Holdings will no longer underwrite fixed income products for thermal coal mining or thermal coal-fired power generation company, as well as overseas unconventional oil and gas related corporate. (unless the use of proceeds is explicitly for the development of renewable energy or low-carbon transition, or the company commits not to further expand thermal coal-fired power capacity, or the company (or its parent company/group) commits to establish science-based emissions reduction targets (SBT)).
- Including mining, power, manufacturing, trading, transport and logistics, equipment manufacturing, and infrastructure.
- Including: extraction, processing, manufacturing (including Liquified Natural Gas (LNG) derived from unconventional extractions), exploration and expansion, as well as infrastructure of tar sands, shale oil and gas, ultra-deep-water (UDW) oil & gas, coalbed methane (CBM), arctic oil and gas, extra heavy oil.
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Threshold:
- Thermal coal mining or thermal coal-fired power generation company： (1) A thermal coal mining or thermal coal-fired power generation company refers to a company that is on the Global Coal Exit List (GCEL), and itself or its parent company is categorized as power or mining in the Coal Industry Sector. A company is on the GCEL if it meets any of the three criteria, according to the definition by the international non-governmental organization Urgewald. i. Relative threshold: Companies that have a coal share of revenue or a coal share of power production of 10% or more. ii. Absolute threshold: Companies whose annual thermal coal production exceeds or equals 10 million tons, or companies whose installed coal-fired power capacity exceeds or equals 5 GW. iii. Expansion threshold: Companies develop new coal mines, new coal-fired power capacity or coal-related infrastructure. If the GCEL threshold changes overtime, SinoPac promises to make corresponding adjustments. (2) For companies that are not on the GCEL list, Companies that have a coal share of revenue of 5% or more from thermal coal mining or thermal coal-fired power generation are defined as "thermal coal mining and thermal coal-fired power generation companies."
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Unconventional oil and gas company：
(1) According to the definition of the Global Oil & Gas Exit List (GOGEL) by the international non-governmental organization Urgewald, a company is defined as "unconventional oil and gas company" if it is determined to be involved in any of the unconventional oil and gas related activities.
If the GOGEL threshold changes overtime, SinoPac promises to make corresponding adjustments. (2) For companies that are not on the GOGEL list, companies that are involved in the extraction, processing, manufacturing (including Liquified Natural Gas (LNG) derived from unconventional extractions), exploration and expansion, as well as infrastructure of tar sands, shale oil and gas, ultra-deep-water (UDW) oil & gas, coalbed methane (CBM), arctic oil and gas, extra heavy oil are defined as "unconventional oil and gas companies."
- Domestic companies refer to companies registered in Taiwan, including overseas companies whose ultimate parent company is registered in Taiwan. Companies that do not fall within the afore-mentioned definition are overseas companies.
- Investment: including active investment, passive investment, and third-party investment.