Sustainability
CH
Sustainability

Together, a better life.

Together, a better life.

Task Force on Climate-Related Financial Disclosures (TCFD)

Task Force on Climate-Related Financial Disclosures (TCFD)

Read Chapter Report Contents

Risk Management

Risk Management

SinoPac Holdings continues to enhance climate-related risk management mechanisms. This year, the Company has followed the four major cores of TCFD framework and referenced the "Guidelines for Domestic Banks' Climate Risk Financial Disclosure" by Financial Supervisory Commission R.O.C. (Taiwan) and added "governance", "strategy", "risk management", and "metrics and targets" in the Company's "Guidelines for the Management of Climate-Related Risks and Opportunities" to improve climate risks and opportunities management mechanisms. The subsidiaries have established the "Standards for the Management of Climate-Related Risks and Opportunities" and integrated climate risks into business items. They also established the "Responsible Investment Management Guidelines" and "Responsible Lending Management Guidelines" for investment and lending businesses for management and control. SinoPac Holdings also established the "Natural Disaster Emergency Response Guidelines" and "Supplier Sustainable Development Guidelines" to ensure prudent management of its credit, market, and operational risks. Since 2021, the Risk Management Division of SinoPac Holdings has disclosed the overall climate change risks (including physical risks and transition risks related metrics) in the quarterly Risk Management Report and reported them to the Risk Management Committee and the Board of Directors.

SinoPac Holdings uses the three lines of defense in internal control to specify the duties and management mechanisms for the management of climate change risks on each line of defense.

Management of Investment and Lending Risks

SinoPac Holdings formulated a group-level sustainable finance statement in 2022, and has incorporated environmental, social, and corporate governance (ESG) factors into its corporate banking, retail banking, asset management, wealth management, investment banking, and brokerage businesses. The Board of Directors approved the "Sustainable Finance Strategy" on July 21, 2023, as the highest guiding principles for sustainable finance businesses, and business units established related management guidelines accordingly. Please refer to the "SinoPac Holdings Sustainable Finance Statement."

SinoPac Holdings Principles for Responsible Investment and Responsible Lending

Industry and Activity Guidelines


Engagement and Management Guidelines

Management of Operational Risks

Potential risks to corporate operations from climate change include operational interruptions or personnel injury from physical risks and hazards. In order to reduce possible safety concerns and property losses from physical risks, SinoPac Holdings established a Business Continuity Plan (BCP), and voluntarily established the "Emergency Incident Response Rules" and "Natural Disaster Emergency Response Guidelines." We have distributed responsibilities and established emergency notification procedures as well as response and handling guidelines to deploy various personnel, materials, and resources at key moments; integrate different mechanisms and adopt active and effective response and rescue actions to prevent expansion of damages; eliminate disaster crises; and help to resume normal operations.

Management of physical risks in own operations for SinoPac Holdings and all subsidiaries

Responsible Unit Item Implementations
Operation Management Division Business locations and self-owned real estate
  • We obtained “commercial fire insurance” and “comprehensive electronics insurance” (including typhoon and flood insurance) to transfer losses. ​
  • We identified offices in high-risk areas. In addition to strengthening dredging pipes, we also inventoried waterproofing and electrical facilities (including floodgates, uninterruptible power equipment, emergency generators, and machine room locations) to assess their resilience for disaster prevention. We have currently completed inventory of waterproofing and electrical facilities, and will continue to work with our Risk Management Division to refine identification methods for high-risk offices and track transmitted risks.
Upstream suppliers' operating sites
  • Raise supplier commitment signing rates to 90% to track supplier climate actions. As of year-end 2023, we achieved a 100% signing rate and met our target. ​
  • Strengthen ESG communications in our supply chain: In 2023, we hosted supplier ESG education and training associated with climate change and global risk trends which were attended by 31 suppliers from six industries (construction and repairs, computer systems, office supplies, property maintenance, printing, and marketing services).
  • Optimize supplier grading system and inventory suppliers with high carbon emissions. We completed on-site audits of 10 suppliers in 2021.
  • We surveyed operating locations of all suppliers at different timepoints under various RCP scenarios and found that only one supplier was located below sea level under RCP8.5 at the end of the century; this supplier was considered to be “high risk.” Our procurement amount with said supplier is around NT$ 260,000, and we determined it to be highly substitutable and therefore low risk.