永豐銀行 Bank SinoPac

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Responsible Lending

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Bank SinoPac understands the financial industry plays an important role in reducing global carbon emission, as it controls the majority of the cash flows supporting the economy. By following the Equator Principles and incorporating ESG factors into its risk assessment process, Bank SinoPac pays close attention to clients' understanding towards the risks and opportunities brought by climate change as well as its influence on financial performance, in order to take proactive countermeasures further. 

  • Policy and Management of Corporate Banking
    Bank SinoPac established the “Responsible Lending Management Guidelines” and incorporate ESG considerations in the lending process. If ESG risk factor exists, the business unit shall engage with customers to explore the situation and assist customers to improve and respond by evaluating and proposing mitigative and remedial measures. In the event that customers involving in serious issues or cannot resolve issues continuing for a long time, the Bank should evaluate the business relationship in a prudent manner. Review process and engagement includes:

    • Prohibit lending to controversial industries: e.g. pornography, controversial arms.
    • Carefully Evaluate Sensitive Industries: enhanced ESG risk analysis on sensitive industries, including oil and gas, coal-fired power generation, gambling, those with issues in food safety, toxic radioactive substance, non-medical and hazardous genetic engineering, non-adhesive asbestos fiber and polychlorinated biphenyls (PCBs) manufacturing.
    • Follow the business restrictions imposed by the Decarbonization Policy of SinoPac Holdings. (please refer to the official website of SinoPac Holdings)
    • Incorporate ESG related factors, such as environmental, social, governance, and climate change risks etc., into the lending processes:     
    • Communicate and collaborate with clients in industries with high climate risks (including industries with high carbon emissions) and advise them to provide data on GHG emission intensity and low carbon transition strategies, and invest in green loans.
    • Encourage clients to engage in socially responsible lending for reducing inequality, providing basic life necessities, or providing suit­able work to create positive relationships, and avoid and resolve negative impact on stakeholders. The Company encour­age them to make positive contributions to social goals without harming the environment.
    • Focus on whether clients assess and respond appropriately to the risks and opportunities of climate change and natural capital, whether they understand the impact of climate change and loss of biodiversity (including conservation of species, and habitat preservation) on their financial performance, and whether they have taken response measures.
    • Actively direct funds to sustainable economic activities and encourage clients to adopt the "Taiwan Sustainable Taxonomy", fill out the "Corporate Self-Assessment Questionnaire of ESG Information", and plan carbon reduction or transition investment project.

                                          

  • Equator Principles

    Bank SinoPac formally became a signatory to the Equator Principles (EPs) in February 2020. SinoPac established EPs related guidelines and operating procedures, completed EPs training sessions, strengthening the management of human rights risks and climate change risks in the credit investigation and lending process for project financing. It also complies with EP4 and the eight Performance Standards of International Finance Corporation (IFC) and included climate change and biodiversity risks as necessary items.

    Bank Sinopac established a dedicated Environmental and Social Risk Team in November 2021, serving as an internal consultant for the risk assessment and review of EPs cases. For high-risk cases, the team seeks assistance from a third-party external consultant according to the EPs. The Company has also incorporated Equator Principles cases into the self-inspection items starting from December 2022 and a third party from head office will inspect the process of Equator Principles cases regularly.

  •  2023 Equator Principles report

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