Sustainable Finance Statement

In response to the United Nations' Sustainable Development Goals (SDGs), SinoPac Holdings has made three sustainability commitments: Mitigating and Adapting to Climate Change, Reducing Inequality, and Promoting Inclusive Growth, focusing on eight SDGs, and dedicated to following international sustainable finance initiatives and responding to competent authority policies.
SinoPac Holdings integrated ESG aspect in its daily operations and businesses in the scope regulated in this statement, and proactively developed sustainable finance products and services such as green and low-carbon transition.
On March 15, 2022, SinoPac Holdings’ Board of Directors approved the Company's net zero commitment, including its own operations by 2030 and its all financed portfolios by 2050. SinoPac Holdings has set science-based targets (SBT) which were approved by Science Based Targets initiative (SBTi) in January 2024. The “Sustainable Finance Policy” as its guidelines of sustainable financial business on July 21,2023. The development of sustainable financial business of the Company is overseen by the Board of Directors. The Company hopes to make a positive impact on global sustainable development through core financial business.

SinoPac Holdings “Sustainable Finance Policy”

Scope

Sustainable Financial business include corporate banking, retail banking, asset management and investment, wealth management or private banking, and investment banking and brokerage. This statement applies to SinoPac Holdings and its subsidiaries.

Compliance with domestic and international ESG management guidelines

Sustainable development is inseparable from the core competence of the enterprise. SinoPac Holdings follows international sustainable finance initiatives and responds to competent authority policies, respectively corresponding to the international sustainable framework: the Equator Principles (EPs) and the Principles for Responsible Investment (PRI), and has signed the “Stewardship Principles for Institutional Investors,” integrating environment, society, and corporate governance (ESG) into core operations, including products and services, operation management, asset investment, after-sales management, risk management,etc. By emphasizing sustainability, we can instantly grasp international trends, opportunities and risks, and at the same time strengthen our core competitiveness, to achieve the goal of making corporate profits while being committed to the common good and mutual benefit for society and stakeholders.

Equator Principles
(EPs)

Bank SinoPac established the Responsible Lending Management Guidelines, implement KYC (Know Your Customer) and CDD (Customer Due Diligence) mechanisms in lending process, and included ESG factors into the credit investigation procedures. Bank SinoPac formally became a signatory to the Equator Principles (EPs) in February 2020, became the world's 102nd signatory of Equator Principles Financial Institutions (EPFIs), and strengthen the management of human rights risks and climate change risks in the credit investigation and lending process for project financing. Bank SinoPac also complies with EP4 and the eight Performance Standards of International Finance Corporation (IFC) and included climate change and biodiversity risks as necessary items for risk assessment. Starting in 2022, Bank SinoPac will disclose on the official website of the Equator Principles Limited and Bank SinoPac official website the EPs related information of project finance.

Principles for Responsible Investment
(PRI)

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 businesses. 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, in order to implement responsible investment.

Stewardship Principles for
Institutional Investors

Bank SinoPac, SinoPac Securities, and SinoPac SITC have signed a statement of compliance with the “Stewardship Principles for Institutional Investors” in 2018, and established their “Stewardship Policy” in 2020, incorporating ESG factors into the investment evaluation process, incorporating climate change related issues into their voting policy, and establishing related guidelines, such as conflict of interest management, voting policy and engaging activities.

Incorporates ESG management process into the sustainable financial products and services

In the design of sustainable financial products and the process of lending and investment, SinoPac Holdings incorporated ESG factors into Customer Due Diligence and existential products and services processes to manage ESG risk, such as the impact of climate change, the issues of labor human rights, and risk management mechanisms, by taking the differences of business scope and assets characteristics into account. At the same time, SinoPac Holdings actively promoted themed investments and themed financing, incorporated ESG into business strategies to achieve better sustainability performance and created a positive cycle of corporate operations.

ESG verification procedures

SinoPac Holdings incorporated ESG check processes (e.g., ESG ratings of professional institutions, disclosure of negative ESG information, apply exclusions policy, etc.) into responsible investment and responsible financing management processes.

NOTE

Controversial industries: such as pornography and controversial arms.
For details please link "Decarbonization Policy"
Sensitive industries include the oil and gas industry, coal-fired power generation industry, cement and concrete manufacturing industry, and iron, steel, other metal manufacturing industries, oil and gas, metal and mining, power generation industry, chemical materials manufacturing industry, agriculture, forestry, fishery, and animal husbandry, and traditional manufacturing - manufacturing of automobiles and motorcycles/metal and manufactures thereof;
Sensitive activities include gambling, industries with food safety concerns, hazardous radioactive materials, genetic engineering not used for medical purposes or detrimental to human development, and the manufacturing of non-adhesive asbestos fibers and polychlorinated biphenyls.
High carbon emission industries include coal-fired power generation, oil and gas industry, cement and concrete manufacturing, steel, iron, and other metal manufacturing industries.

Enterprise Engagement and Shareholder Activities

SinoPac Holdings actively promoted sustainable financial concept and engaged with internal and external stakeholders by the design of sustainable financial products, internal and external cooperation, and ESG forums, and hoped to pursue profits and to benefit society and the environment. Furthermore, SinoPac Holdings actively engages with investee companies with regards to ESG, and its subsidiaries, including Bank SinoPac, SinoPac Securities, and SinoPac SITC, sent sustainability questionnaires on ”Environment, Social and Corporate Governance (ESG)” issues to investee companies annually, learning about the investee companies' understanding of international climate-related and biodiversity initiatives, as well as their management and goals for sustainability issues. To engage investee companies for the issues by visiting companies and hosting ESG forums. This allows the Company to work together with investee companies in low carbon and emission reduction actions, and dedicate our efforts to mitigate and adapt to climate change.

SinoPac Holdings incorporated ESG and climate change related issues into its voting policy. The criteria for voting on proposals proposed by investee companies are based on issues related to sustainable development such as protecting the environment, climate change, strengthening social responsibilities, or improving corporate governance. In terms of actual implementation, the subsidiaries attend shareholders' meetings and exercise their voting rights and engage senior executives to monitor the business situation of the investee company, which is disclosed on an annual basis.
In the future, SinoPac Holdings will continue to collect the opinions of investee companies and will include issues that investee companies are concerned about or relatively unfamiliar with into ESG forums. The Company will also actively participate in climate change initiatives in hopes of using the financial industry's influence to achieve sustainable development together with companies.

Together, a better life.

Together, a better life.

Sustainable Finance Policy