Task Force on Climate-Related Financial Disclosures (TCFD)
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Metrics and Targets
In response to the challenges of climate-related risks and opportunities, SinoPac Holdings pledged to achieve net zero emissions in its own operations by 2030 and its financial portfolios by 2050. SinoPac Holdings has implemented GHG inventory each year since 2018. The Company reduced carbon emissions by setting SBTs, gradually increasing the use of renewable electricity, expanding renewable energy financing and issuing green bonds, and adjusted the investment and lending strategies (e.g., support clean energy and innovative technologies, assist clients with carbon reduction and transition into low-carbon operations) to expand the scope, uncover climate-related opportunities, and promote the low-carbon transition of the entire value chain .Related plans have been incorporated into the SinoPac Holdings short-, medium-, and long-term key tasks for sustainable development.
Achievements on Science-Based Targets (SBTs)
SinoPac Holdings is actively progressing strides toward the net zero targets: achieve net zero emissions in its own operations by 2030 and its financial portfolios by 2050. Our SBTs were formulated using 2021 as the base year, and we continuously monitor progress to ensure carbon reduction progress in accordance with these targets. For SinoPac Holdings’ SBTs achievements, please refer to "2025 Climate and Nature-Related Financial Disclosures Report" Chapter 5.1: Targets Achieved in 2025, Achievements on Science-Based Targets (SBTs) in 2025.
Financed/Facilitated Emissions
SinoPac Holdings follows the "Financed Emissions: The Global GHG Accounting and Reporting Standard Part A", released in December 2025, and the "Facilitated Emissions: The Global GHG Accounting and Reporting Standard Part B", released in December 2023, by the "Partnership for Carbon Accounting Financials" (PCAF); "Practical Handbook for Calculating Financed Emissions (Scope 3) of Securities Investment Trust Fund Portfolios", released by the Securities Investment Trust & Consulting Association of the R.O.C. (SITCA) in September 2024; and the "Practical Handbook for Financed Emissions (Scope 3) in Investment and Financing Portfolios of Domestic Banks" released by the Bankers Association of the R.O.C. in October 2023. Based on these guidelines, the Company conducted a carbon inventory of its investment and financing portfolios, as well as the asset management business of SinoPac Securities Investment Trust (SinoPac SITC), as of December 31, 2025, and facilitated activities for capital markets in 2025, and completed greenhouse gas validation and verification.
*Note
The scope of the inventory included assets such as listed/unlisted equity, corporate bonds, sovereign debt, sub-sovereign debt, project finance, business loans, commercial real estate, mortgages, and motor vehicle loans.
Financed Emissions of Investment and Lending Portfolios
The financed emissions inventory coverage rate of SinoPac Holdings' investment and financing portfolios was 66.41% (ratio of inventoried amount to overall investment and financing amount *Note ). The coverage rate applicable under the PCAF Standard was 95.78% (ratio of inventoried amount to the amount applicable under the PCAF Standard). The financed emissions of SinoPac Holdings totaled 5.63 million tCO2e and the overall economic emission intensity was 2.8 (tCO2e/NT$1 million in investment and lending).
Avoided Emissions
Avoided emissions refer to emission reductions that the financed project produces versus what would have been emitted in the absence of the project (the baseline emissions). In the context of the PCAF Standard, avoided emissions are only from renewable energy projects. Avoided emissions from renewable energy project financing as of December 31, 2025 amounted to 1.97 million tCO2e.
Carbon Inventory of Investment and Lending Portfolios
| Asset Class | Investment and financing amount included in the inventory (NT$ million) |
Percentage of total investment and lending (%) |
Coverage rate applicable under the PCAF Standard (%) |
|---|---|---|---|
| Business loans | 827,720 | 27.72% | 99.28% |
| Mortgages | 387,282 | 12.97% | 99.32% |
| Corporate bonds | 294,255 | 9.85% | 99.86% |
| Project finance | 173,453 | 5.81% | 100.00% |
| Sovereign debt (exclude LULUCF) *Note1 | 158,495 | 5.31% | 99.70% |
| Listed equity | 52,677 | 1.76% | 100.00% |
| Commercial real estate | 38,873 | 1.30% | 100.00% |
| Sub-sovereign debt | 29,184 | 0.98% | 100.00% |
| Unlisted equity | 14,689 | 0.49% | 100.00% |
| Motor vehicle loans | 6,405 | 0.21% | 100.00% |
| Inventoried positions *Note2 | 1,983,032 | 66.41% | 95.78% |
| Uninventoried positions *Note3 | 1,003,029 | 33.59% | |
| Total | 2,986,061 | 100.00% |
- Refers to activities related to Land Use, Land Use Change, and Forestry (LULUCF). E.g., transforming the usage of forest to agricultural use.
- Use of Proceeds (UoP) structures and Securitized and Structured Products (SSP) as defined in the latest version of the PCAF standard (2025); since the calculation requires obtaining their underlying assets, complete information is currently unavailable for calculation. Therefore, only the amounts subject to the applicable methodologies were inventoried in the current year.
- The positions are not yet inventoried consist mainly of four categories: (1) Use of Proceeds (UoP) structures and Securitized and Structured Products (SSP) as defined in the latest version of the PCAF standard (2025); since the calculation requires obtaining their underlying assets, complete information is currently unavailable for calculation; (2) asset classes for which PCAF has not yet published technical documents (including personal unsecured loans, derivatives, and ETFs); (3) "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. clearly defines certain asset classes to be excluded (e.g. mortgages (repair and construction), commercial paper negotiable certificates of deposit issued by the Central Bank, and fixed rate commercial paper) ; (4) minor amount of inventory information was incomplete.
| Asset class | Investment and lending amount (NT$ million) |
Financed emissions (tCO₂e) |
Proportion of financed emissions (tCO₂e) |
Economic emission intensity (tCO₂e/NT$1 million in investment and lending) |
Data quality score (1: best; 5: worst) |
|---|---|---|---|---|---|
| Business loans | 827,720 | 3,457,405 | 61.36% | 4.2 | 3.8 |
| Sovereign debt (exclude LULUCF) *Note1 | 158,495 | 765,705 | 13.59% | 4.8 | 1.9 |
| Corporate bonds | 294,255 | 411,092 | 7.30% | 1.4 | 1.7 |
| Sub-sovereign debt *Note2 | 29,184 | 336,064 | 5.96% | 11.5 | 2.2 |
| Project finance | 173,453 | 292,496 | 5.19% | 1.7 | 3.0 |
| Motor vehicle loans | 6,405 | 126,803 | 2.25% | 19.8 | 3.8 |
| Listed equity | 52,677 | 110,066 | 1.95% | 2.1 | 1.1 |
| Mortgages | 387,282 | 87,117 | 1.55% | 0.2 | 4.0 |
| Commercial real estate | 38,873 | 40,265 | 0.71% | 1.0 | 4.0 |
| Unlisted equity | 14,689 | 7,704 | 0.14% | 0.5 | 2.2 |
| Total | 1,983,032 | 5,634,717 | 100.00% | 2.8 | 3.2 |
- In 2025, financed emissions of sovereign debt excluding LULUCF amounted to 765,705 tCO2e, while those including LULUCF amounted to 728,459 tCO2e.
- In 2025, sub-sovereign debt was newly included in the portfolio assessment in accordance with the latest PCAF methodology (2025).
Financed Emissions for Specific Assets
Financed Emissions Intensity for Specific 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 97.34% (ratio of inventoried amount to overall asset management amount of SinoPac SITC). *Note The financed emissions totaled 0.20 million tCO2e and the economic intensity was 3.0 tCO2e/ NT$1 million in investment.
Facilitated Emissions of Capital Markets
The Company inventoried underwriting/syndicated loan cases in 2025 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 100%, and the facilitated emissions amounted to 0.25 million tCO2e.
