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 followed 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 and established verification mechanisms for the prohibition on investment in controversial industries and careful evaluation of investments in sensitive industries/economic activities, and incorporates different ESG factors in each phase of investment 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. Before making an investment, according to different asset classes, SinoPac Holdings first assesses the ESG risks, observing the company's ESG performance, and the ESG ranking of external professional institutions to determine the investment target's risk level. For management after making an investment, SinoPac Holdings complies with the voting policy under the “Stewardship Policy”, in principle support the ESG proposals proposed by the investee companies to achieve positive goals of environmental, social, governance, or sustainable operations; in principles opposes any proposal that violates significant climate or social relevant matters or the proposal proposed by the company has had corporate governance disputes have occurred. The Company engages investees to determine potential ESG-related issues that they may face and examines their ESG 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” in principle support the sustainability-related proposals proposed by the investee companies to achieve positive goals of environmental, social, governance, or sustainable business; in principle opposes any proposals that violates significant climate or social relevant matters or the proposals proposed by the company has had corporate governance disputes. The Company engages with investee companies 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
  • If the management of the investee company involves in unsound business practices that could harm the rights and interests of the company or shareholders, it shall be evaluated to abstain or vote against such proposals.
  • Analyze the investee company's current business results, including financial structure, solvency, operational ability, and profitability, and track major news events.
Non-financial
  • Support sustainability-related proposals proposed by the company to achieve environmental, social, governance or sustainable business goals, including:
    1. Environmental issues
      Support proposals that promote or disclose reasonable and comprehensive plans for climate transition, reducing operational and supply chain greenhouse gas emissions, strengthening the protection of natural resources, and preserving biodiversity and ecosystems.
    2. Social issues
      Support proposals that promote or disclose initiatives to enhance occupational health and safety, value workplace diversity and inclusion, uphold human rights, and establish fair and reasonable remuneration policies.
    3. Governance issues
      Support proposals that promote or propose the deepening of a sustainable governance culture, strengthening director performance, competence and independence, enhancing gender diversity in the board of directors, implementing a nomination system for director election, and ensuring a reasonable dividend payout.
  • If there are significant concerns regarding the violations of environmental (including significant climate-related issues, major environmental pollution from investment/expansion, and permanent impacts on the overall natural environment and ecosystem), social (including illegal employment of child labor, forced labor, major occupational accidents), and corporate governance aspects of sustainable business, it shall be evaluated to abstain or vote against such proposals.
  • 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-risk, the Company shall set a limit on the percentage of investment; if it is assessed as low-risk, carefully review the necessity of the 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.