Sustainability
CH
Sustainability

Together, a better life.

Together, a better life.

Sustainable Financial Products and Services

Sustainable Financial Products and Services

Wealth and Asset Management Business

SinoPac Holdings' subsidiary SinoPac SITC operates asset management business, which includes active investments and passive investments. SinoPac SITC has no externally managed assets. SinoPac SITC incorporates ESG factors into the investment process in fund utilization and established the “SinoPac SITC ESG Investment and Risk Management and Information Disclosure Policy” referred to the United Nations’ "Principles for Responsible Investment" as well as "Stewardship Principles for Institutional Investors" and SinoPac Holdings’ "Sustainable Finance Policy" and the "Responsible Investment Management Guidelines", and reference to the "Corporate Governance Best-Practice Principles for Securities Investment Trust Enterprises and Securities Investment Consulting Enterprises of Securities Investment Trust & Consulting Association of the R.O.C." has established the " ESG Investment and Risk Management and Information Disclosure Policy."

SinoPac SITC incorporating ESG factors into the investment evaluation process to strength investment and asset management businesses. Besides prohibiting investments in controversial industries, it carefully evaluates investments in sensitive industries/sensitive economic activities and incorporated climate change related issues into its voting policy. SinoPac SITC has incorporated the ESG risk assessment process for different asset classes in 2021, and guidelines for evaluating investments in high carbon emissions industries was implemented on a trial basis. In 2022, SinoPac SITC amended the "Stewardship Policy" to strengthen the responsibilities for ESG investment and risk management of the Board of Directors and senior executives. It proposed amendments to the voting and engagement policy in 2023 and completed the amendments for voting and engagement related standards in 2024. In terms of actual implementation, SinoPac SITC monitor the business situation of investee companies by attending shareholders' meetings, exercising voting rights, and engaging with senior executives.

SinoPac SITC specified in the "SinoPac SITC ESG Investment and Risk Management and Information Disclosure Policy" that it supports thematic investments that contribute to the development of ESG-related issues, as well as the public offering of ESG or sustainability themed funds, to promote responsible investment. SinoPac SITC has launched five ESG-themed funds, including income-generating products that incorporate ESG issues. These funds cover both active and passive strategies, investments in Taiwan and overseas markets, and asset classes ranging from equities to fixed income, demonstrating its continued commitment to supporting investment products that contribute to ESG-related issues.

Issuance of Sustainability Funds

SinoPac Taiwan ESG Plus Fund
  • The fund invests in constituent stocks of the FTSE4Good TIP Taiwan ESG Index, in order to meet investors' need for wealth management that invests in sustainable growth.
SinoPac Taiwan Target Exposure ESG ETF
  • Tracking the performance of FTSE Taiwan Target Exposure ESG Index.
  • Fully replicating the portfolio of benchmark index.
  • The members of benchmark index are selected primarily by each company's ESG scores.
SinoPac ESG Global Digital Infrastructure Fund
  • The investment list of the fund target on the digital infrastructure theme including global infrastructure stocks and REITs.
  • The investment pool filter by ESG rating, and exclude controversial industries and companies with low ESG ratings.
  • The investment targets cover the three major topics and New Ten Major Construction Projects, including data center, digital transformation and future energy.
SinoPac Taiwan ESG Low Carbon High Dividend 40 ETF
  • Tracking the performance of Taiwan ESG Low Carbon High Dividend 40 Index compiled by Taiwan Index Plus Corporation.
  • The members of benchmark index are selected primarily by each company’s carbon emission, ESG scores, and stability of cash dividend.
  • Fully replicating the portfolio of benchmark index.
SinoPac 15+ Year Investment Grade US Banking ESG ETF
  • Tracking the performance of ICE 15+ Year Investment Grade US Banking ESG Index compiled by ICE Data Indices.
  • The members of benchmark index are investment grade bonds issued by major global banks.
  • Using Sustainalytics ESG risk score to eliminate high-risk targets.

Sustainability Fund Sales

The ESG themed funds that are sold of Bank SinoPac, SinoPac Securities and King’s Town Bank comply with the European Union's Sustainable Finance Disclosure Regulation (SFDR) and focus on environmentally friendly investment themes such as green energy, water resources, energy transition, climate change, and environmental sustainability to providing retail banking and wealth management customers with more diverse investment options that take ESG into consideration.

SinoPac+ ESG Rating System

SinoPac Securities Investment Service Corp. has launched the SinoPac+ ESG Evaluation System with the SASB standards as the core framework worked with a third party institution in 2021. It uses publicly available information as the source of information for evaluations and uses financially significant sustainability indicators and localized design to classifies companies into five ratings based on their sustainability performance.

The SinoPac+ ESG Rating System of SinoPac Inv. Service was officially launched on the ESG IR Platform of the Taiwan Depository & Clearing Corporation (TDCC) in 2024. It is the only financial institution in Taiwan that provides TWSE sustainability evaluation services.