Task Force on Climate-Related Financial Disclosures (TCFD)
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Metrics and Targets
SinoPac Holdings has set climate targets for climate governance, climate opportunities, green procurement, green operations, capital allocation, internal carbon pricing, climate risk management, climate engagement, greenhouse gas emissions, energy usage, and other short, medium, and long-term goals. The Company will reviews and tracks the status of the metrics and targets each quarter in the Sustainable Development Committee and implements continuous amendments to strengthen our climate resilience and win business opportunities. Please refer to "2023 Climate and Nature-Related Financial Disclosures Report" Chapter 5: Metrics and Targets.
Science Based Target (SBT) Implementation Status in 2023
SinoPac Holdings actively implements pledging to achieve net zero emissions of its own operations by 2030 and the entirety of its financed portfolios by 2050. As of year-end 2023, for the Company's SBTs approved by SBTi and the implementation status, please refer to "2023 Climate and Nature-Related Financial Disclosures Report" Science Based Target (SBT) Implementation Status in 2023.
Financed/Facilitated Emissions
SinoPac Holdings adopted the "Financed Emissions: The Global GHG Accounting and Reporting Standard Part A" methodology published by the Partnership for Carbon Accounting Financials (PCAF) on December 30, 2022, the "Practical Handbook for Financed Emissions (Scope 3) in Investment and Lending Portfolios of Domestic Banks" published by the Bankers Association of the R.O.C. in October 2023, and the "Facilitated Emissions: The Global GHG Accounting and Reporting Standard Part B" published by PCAF on December 1, 2023. The Company conducted a carbon inventory of the investment and lending portfolios with own capital and asset management businesses of SinoPac Securities Investment Trust (SinoPac SITC) on December 29, 2023, and facilitated amount of capital markets in 2023, and introduced ISO 14064 greenhouse gas validation and verification this year *Note . The scope of the inventory included assets such as mortgages, business loans, corporate bonds, sovereign debt, project finance, commercial real estate, listed/unlisted equity, and motor vehicle loans.
Financed emissions of investment and lending portfolios with own capital
The overall coverage rate of investment and lending portfolios with own capital was 62.95% (ratio of inventoried amounts to overall investment and financing amounts *Note ). The coverage rate applicable under the PCAF Standard was 92.86% (ratio of inventoried amounts to the amounts applicable under the PCAF Standard). The financed emissions of SinoPac Holdings totaled 3.37 million tCO2e and the overall economic emission intensity was 2.3 (tCO2e/NT$1 million in investment and lending).
Avoided Emissions
Avoided emissions refer to emission reductions that the financed project produces versus what would have been emitted in the absence of the project (the baseline emissions). In the context of the PCAF standard, avoided emissions are only from renewable energy projects. Avoided emissions from renewable energy project financing as of December 29, 2023 amounted to 1.33 million tCO2e.
| Asset Class | Investment and lending amount included in the inventory | Proportion of overall investment and lending portfolio | Coverage rate applicable under the PCAF Standard |
|---|---|---|---|
| Business loans | 460,511 | 20.18% | 80.91% |
| Mortgages | 381,135 | 16.70% | 100.00% |
| Corporate bonds *Note1 | 262,926 | 11.52% | 99.32% |
| Sovereign debt (Excluding LULUCF) *Note2 | 144,102 | 6.31% | 100.00% |
| Project finance | 108,371 | 4.75% | 100.00% |
| Listed equity | 35,368 | 1.55% | 99.99% |
| Commercial real estate | 33,839 | 1.48% | 100.00% |
| Unlisted equity | 6,141 | 0.27% | 99.26% |
| Motor vehicle loans | 4,032 | 0.18% | 100.00% |
| Inventoried positions | 1,436,426 | 62.95% | 92.86% |
| Uninventoried positions *Note3 | 845,579 | 37.05% | |
| Total | 2,282,005 | 100.00% |
- Corporate bonds investments included one fund investment linked to corporate bonds, with an investment amount of approximately NT$8 million.
- Refers to activities related to Land Use, Land Use Change, and Forestry (LULUCF). E.g., transforming the usage of forest to agricultural use.
- Positions that cannot be inventoried are because PCAF has not released related technical documents (including green investment and lending, personal loans, mortgages (repair and construction), derivatives, commercial paper, negotiable certificates of deposit, ETFs, and MBS), or because a small amount of inventory information was incomplete.
| Asset Class | Investment and lending amount (NT$ million) |
Financed emissions (tCO2e) |
Proportion of financed emissions | Economic emission intensity (tCO2e/ NT$1 million in investment and lending) |
Data quality score (1: best, 5:worst) |
|---|---|---|---|---|---|
| Business loans | 460,511 | 1,393,189 | 41.28% | 3.0 | 3.2 |
| Sovereign debt (Excluding LULUCF) *Note1 | 144,102 | 852,452 | 25.26% | 5.9 | 1.8 |
| Corporate bonds *Note2 | 262,926 | 740,812 | 21.95% | 2.8 | 1.8 |
| Project finance | 108,371 | 186,808 | 5.54% | 1.7 | 3.0 |
| Mortgages | 381,135 | 85,435 | 2.53% | 0.2 | 4.0 |
| Listed equity | 35,368 | 71,609 | 2.12% | 2.0 | 1.2 |
| Commercial real estate | 33,839 | 34,406 | 1.02% | 1.0 | 4.0 |
| Motor vehicle loans | 4,032 | 5,974 | 0.18% | 1.5 | 3.4 |
| Unlisted equity | 6,141 | 4,057 | 0.12% | 0.7 | 3.2 |
| Total | 1,436,426 | 3,374,742 | 100.00% | 2.3 | 3.0 |
- Financed emissions of sovereign debt excluding LULUCF amounted to 852,452 tCO2e, and which including LULUCF amounted to 793,212 tCO2e.
- Corporate bonds investments included one fund investment linked to corporate bonds, with an investment amount of approximately NT$8 million, contributing to 122 tCO2e of financed emissions.
Financed emissions for specific investment and lending assets
Economic emission intensity for specific investment and lending assets
Financed emissions of asset management businesses of SinoPac SITC
The Company conducted a financed emissions inventory of asset management businesses of SinoPac SITC. The coverage rate was 97.68% (ratio of inventoried amounts to overall asset management amounts of SinoPac SITC). The financed emissions totaled 0.28 million tCO2e and the economic intensity was 5.0 (tCO2e/NT$1 million in investment).
Facilitated Emissions of Capital Markets
The Company inventoried underwriting/syndicated loan cases in 2023 led by SinoPac as lead bookrunner in accordance with the recommended inventory scope described in the “Facilitated Emissions: The Global GHG Accounting and Reporting Standard Part B” released by PCAF in December 2023, calculating GHG emissions associated with capital market. *Note The coverage rate was 98.85%, and the facilitated emissions amounted to 0.5 million tCO2e.
