Sustainability
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Sustainability

Together, a better life.

Together, a better life.

Sustainable Finance Policy

Sustainable Finance Policy

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
  • Oppose in principle on the problematic operations of the investee company's management (such as managing disputes) that may potentially damage the company or shareholders' rights and interests.
  • Analyze the investee company's current business results, including financial structure, solvency, operational ability, and profitability, and track major news events.
Non-financial
  • Oppose in principle on resolutions that violate major climate-related issues (e.g., investments that cause material pollution of the environment, expansion of production lines with high levels of pollution, and issues that cause irreversible and permanent impact on the overall natural environment and ecosystem).
  • Abstain from voting or oppose if the investee company was imposed any fines by the competent authority due to violations of ESG.
  • Abstain from voting on the election of directors and related resolutions when corporate governance incidents have occurred.
  • Examine the ESG rating of existing positions each year. Where an investee fails to meet any evaluation standard or does not have any rating, fill out the "ESG risk assessment checklist". If the investee is assessed as high-risk, the Company is required to dispose of all shares held within a specific period; if it is assessed as medium and low-risk, the Company shall set a limit on the percentage of investment.
  • Track ESG evaluation results, records of fines imposed for ESG violations, track important ESG issues, and urge greater importance to be attached to ESG issues.

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.