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.
The company 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.
In view of this, on March 15, 2022, the board of directors of SPH approved the Company's net zero commitment, including its own operations by 2030 and its all financed portfolios by 2050, and adopted “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 Finance's businesses 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, and risk management. 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, and committed to the common good and mutual benefit for the society and stakeholders.

Incorporates ESG management process into the sustainable financial products and services

In the design of sustainable financial products and the process of financing 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.

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 ESG issues to investee companies annually, learning about the investee companies' understanding of international climate-related initiatives, as well as their management and goals for sustainability issues. To engage investee companies for the issues that they are relatively unfamiliar with 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 climate change related issues into its voting policy. 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.