Responsible Finance

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As an institutional investor, Bank SinoPac is responsible for fulfilling stewardship and enhancing the value of investment with its expertise and influence. To achieve responsible investment, Bank SinoPac takes into account environmental, social, and governance (ESG) issues in the long-term interests of customers and shareholders. On June 8, 2018, Bank SinoPac signed the compliance statement on the "Stewardship Principles for Institutional Investors." In order to urge investee companies to take environmental protection, corporate social responsibility, and corporate governance seriously, Bank SinoPac created its own "Guidelines for Responsible Investment in December 2019 in compliance with the “Guidelines for Responsible Investment” formulated by SinoPac Holdings in June of the same year. As the guiding principles for investment and asset management at Bank SinoPac, the "Guidelines for Responsible Investment" applies to asset management and consulting services covering public equity, fixed income, private equity, infrastructure, property, and derivatives. In addition to incorporating ESG issues and risks into the decision-making process for main business activities, Bank SinoPac has drawn up methods and tools for assessing ESG risks, as well as related regulations, to facilitate the implementation of responsible investment.

In August 2020, Taiwan Stock Exchange Corporation released the revision of the "Stewardship Principles for Institutional Investors." Bank SinoPac updated its compliance statement accordingly on September 16 of the same year. Bank SinoPac has also formulated the "Stewardship Policy." In addition to continuing to monitor the operations of investee companies, Bank SinoPac participates in corporate governance of investee companies by attending their shareholders' meetings, exercising voting rights, and engaging in dialogue and interaction with their directors or management appropriately in order to promote their sustainable development and to protect the overall interests of Bank SinoPac's fund providers.

For Bank SinoPac's "Stewardship Principles for Institutional Investors" and "Stewardship Policy," visit the Corporate Governance session on the company website:Stewardship Principles.

  • Policy and Management of Responsible Lending

    • Development of Responsible Lending
      Since 2014, Bank SinoPac has incorporated the spirit of the "Equator Principles (EPs)" into internal guidelines governing lending business on assessment and reference during credit review procedures. Furthermore, since 2017, ESG risk factors were required to be assessed for all lending cases.

      In 2019, “Principles for Responsible Lending Management” has been promulgated by the Bank, which stipulated exclusion policy, avoided engaging in business with controversial industries (e.g. pornography, controversial weapons), and strengthened ESG risk analysis on sensitive industries. In addition, Bank SinoPac pays close attention to whether customers have evaluated and responded appropriately to the risks and opportunities of climate change.

      With the gradual improvement of the ESG risk control mechanism, Bank SinoPac executed the Equator Principles in February 2020 to further implement the management of ESG risks on large financing projects.

    • Integration of ESG into Corporate Banking
      Bank SinoPac incorporated the ESG risk identification process into the credit review system and generated a checklist for assessment, namely "Credit Risk Information Disclosure and Verification". When the ESG risk is ticked off on the "Credit Risk Information Disclosure and Verification" in the credit review report, the business unit have to identify the causes and provide explanations. 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.

  • Alignment with the Equator Principles
    On February 27, 2020, Bank SinoPac executed the Equator Principles and became the 102nd Equator Principles Financial Institution (EPFI) in the world. Procedures for the Equator Principles are formulated by internal responsible units, who also plan and implement related regulations, systems, review processes and pilot cases in relation to EP project financing, and conduct internal training to ensure that relevant employees are able to assess the impact of project financing cases on the environment and society in accordance with international standards and to fully implement the Equator Principles and Guideline on Responsible Lending. The risk assessment on ESG Risk Factors has become the DNA of corporate lending business!

  • Continue to Strengthen ESG Risk Assessment Tools
    In response to the “Green Finance Action Plan 2.0” initiated by the Financial Supervisory Commission (FSC), Bank SinoPac launched “ESG information integration query platform” in November 2020 in addition to execution of EPs. Bank SinoPac firstly introduced the “TEJ CSR dashboard” of Taiwan Economic Journal into the credit-extension and investment decision-making process. Bank SinoPac integrates not only customers’ traditional financial indicators but also ESG performance and risks.

    Bank SinoPac is determined to take leadership in guiding customers and investors to pay more attention on ESG issues to spread positive influence on sustainable financing.



Solar Energy Equipment Financing Project

  • Financing for Corporate Solar Energy Plants
    To satisfy the needs of both individuals and corporate customers, Bank SinoPac launch “Solar Energy Equipment Financing Project” in 2013. Based on the construction schedule of Solar Energy plants, Bank SinoPac provided loans to customers at all stages of the project. We provide financial solution for ecosystem's upstream and standard financing project for ecosystem's downstream to establish a complete and professional portfolio of financial services for the green industry chain.

    Bank SinoPac has firstly involved in the short-term financing (bridge loans) for the solar energy plants during the construction period, which makes companies more willing to invest. In addition to the development of various green financing products, Bank SinoPac also initial issued green bond to connect among green finance and energy-saving build equipment. Moreover, Bank SinoPac promote the first green energy trading and assistant enterprises integration into energy 100% renewable electricity.

  • Promoting Green Energy Living Environment
    Bank SinoPac focuses on "Energy Generation (Solar Energy Plant), Energy Storage, Energy Saving and Green Finance" to create a green energy living environment. We provide timely and appropriate financing options for companies to assist the construction, operations and maintenance of solar energy plants, including roof-based, ground-based and water-based energy plants. As of the end of 2020, Bank SinoPac has serving as the lead arranger to 6 enterprises which assisted the total loan outstanding amount NT$25 billion for solar energy and total installed capacity of 500MW.

    We also sign MOUs for green financing with local governments and become the first international exhibitor in financial industry. As of the end of 2020, the total loan outstanding amount for solar energy generation equipment of domestic and overseas enterprises was approximately NT$39.71 billion. We'll make renewable energy market, new client and new products to provide Solar Energy Financing Projects that evolves with time.

  • Loans for financing household solar energy equipment
    Individuals and households have started the investment of solar photovoltaic equipment to fulfill their commitment to renewable energy and reduce daily expense. Bank SinoPac responded to the needs of personal customers/households with a quick loan approval process granting a loan amount up to 90% of the appraisal value of the solar energy equipment with a tenure up to 15 years. This has helped significantly reduce the barriers for the installation and increase individuals' or households' willingness to invest in the installment of solar energy equipment on their own rooftops.


Issuance, Guidance, and Underwriting of Green Bonds

Taipei Exchange (TPEx) promulgated the "Operational Directions for Green Bonds" in May 2017 to help green energy technology industries raise funds, promote sustainable environmental development, and establish a mechanism for TPEx trading of green bonds in Taiwan.

In order to respond to the government policy and to fulfill corporate social responsibility, Bank SinoPac issued a green bond worth US$45 million in May 2017. This green bond initiative was awarded the "Editor's Awards in Asia-Pacific Showcase & Awards" by MTN-i, an internationally renowned platform providing bond market coverage, in recognition of Bank SinoPac's leadership in Taiwan's green bond market. In 2019, Bank SinoPac issued another green bond worth NT$3 billion, making the total amount of green bonds issued approximately NT$4.3 billion as of today.

In addition, Bank SinoPac acted as the financial advisor/underwriter for Societe Generale Taipei Branch and ASE Holdings and assisted them in issuing and selling green bonds.

According to the "Green Finance Action Plan 2.0" initiated by the regulatory authority, Bank SinoPac once again took the lead in issuing Taiwan's first sustainable development bond worth NT$1 billion in November 2020 to fulfill corporate social responsibility. The funds raised will be used for the development of renewable energy and energy technology, creating jobs and programs that can reduce or avoid unemployment caused by the socio-economic crisis.


Eco-Friendly Textile Industries

After the "Paris Agreement" formally came into effect in November 2016, important supply chains in the global economy rushed to grasp business opportunities in the "Green Economy" trend. Renowned international sports brands issued green declarations successively, which were targeted by Taiwanese companies as the green business opportunities. Bluesign is the most comprehensive environmental protection standard used in the global textile industry. Textile companies applying for the Bluesign certification are required to invest more than NT$100 million in wastewater treatment equipment, and incur additional expenses on raw material procurement and personnel training. Therefore, Bank SinoPac provides financing to domestic textile companies who plan to obtain the Bluesign certification in order to assist their transition into a green textile company.


Sales Agent of ESG Funds

By selecting overseas/domestic green/ESG concept funds under "Friendly Earth" category, Bank SinoPac provide customers more choices to help customers incorporate sustainability concept into investment portfolio.

  • Please refer to our website for overseas/domestic green/ESG concept funds:further details


SinoPac SPORT CARD

  • Connect the sports and health ecosystem via IoT

    As well-being has gained awareness globally, Bank SinoPac (“SinoPac”) pioneers the integration of sports, consumption, and financial services by connecting the sport and health ecosystem via the IoT. It encourages consumers to earn their cashback through exercise, thereby “achieving your wellbeing while accumulating your wealth.”

    SinoPac SPORT Card is the first credit card earning cashback through calorie burning in Taiwan. SinoPac further launched the “Fun Sport App” for consumers to record their burnt calories every day. By using IoT technology, this app integrates big data, social communities, cloud calculations, and wearable devices to translate these cardholders' burnt calories into bonus points. Also, consumers may team up via the app to encourage each other to emphasize health and do exercise, while deepening the interactions over the social communities. SinoPac's expectation is to engage more consumers while integrating the core financial business to provide a new “inclusive finance” environment where consumers achieve their well-being through exercise.

  • Cross-Industry Collaborations for the Brand New Sports and Health Ecosystem

    SinoPac SPORT Card manifests sports and health. SinoPac enhances collaboration with other industries in the ecosystem, e.g. exercise and fitness operators, sports goods channels, organic food, drugstores, and pharmacies, to provide well-rounded health services to consumers and optimize the IoT sports ecosystem. In addition, it also integrates financial IoT technologies with religious belief. It invites everyone to group-up for “Offertory to Mazu,” whether staying at home, going to work, or exercising and having fun. Teams that achieve 0.5 million steps are qualified for lucky drawings for the offertory to Mazu contributed by SinoPac.

  • Innovative IoT Ecosystem is Well Recognized.
    SinoPac SPORT Card and Fun Sport App are well recognized.

    • Received the Bronze Award as the Best Product Innovation by Digital Times in 2019.

    • 2020
      - Named the Best IoT Initiative by the international financial media, The Asian Banker; the first Asia Pacific financial institution awarded since the award began.
      - Named the Best Initiative in Innovation for the Asset ESG Corporate Awards 2020 by the international financial magazine, The Asset.

  • Outcomes
    As of December 2020, the accumlative data is as follow:

    Total calories (cal) Total steps (step) CO2 emission (kg)
    4.5 billion 150 billion 21.3 million

    Note:1 step= 0.03 calorie; to reduce one kg, 7,700 kcal need to be burnt; 10,000 steps= 1.42 kg of CO2 emission

  • further details:
    Bank SinoPac's Official Site for SPORT Card
    Team up via Fun Sport App


Insurance For Green Enterprises

To relentlessly support the transition of the photovoltaic industry to a green one, Bank SinoPac also actively assists in providing 4 kinds of business insurance required by the green industry, including comprehensive insurance for electronic equipment, mechanical insurance, installation insurance, and public accident liability insurance for possible incident occurrence during the operation of power generation equipment, enabling customers to be fully protected when expanding green business.