Overall ESG fund sales of SinoPac Securities in 2024 was NT$251 million. The overall AUC was NT$731 million. The ESG funds that are sold comply with the European Union's Sustainable Finance Disclosure Regulation (SFDR) invest in sustainability targets, including eco-friendly funds that focus on green energy, water resources, energy transition, climate change, and environmental sustainability. They must also meet the following definitions for sustainability funds to ensure the supply of more diverse investment options that consider ESG to retail banking and wealth management customers.
| Fund category | Definition |
|---|---|
| ESG integration |
Exclusion of controversial or sensitive investments and systematically incorporate ESG risk factors (such as environmental, social, and governance, etc.) into the investment analysis and decision-making process. |
| Best-in-Class screening |
Investing in activities, companies, or projects selected for their positive ESG performance relative to industry peers. Also known as positive screening. |
| Thematic investing |
The allocation of capital to themes or assets related to certain environmental or social outcomes such as renewable energy, energy efficiency, or sustainable agriculture. |
| Impact investing |
Investments made with the intention to generate positive and measurable social and environmental impacts alongside a financial return. |
| Others |
Other ESG products not included in the four categories above but meet the requirements of Articles 8 and 9 of SFDR. |
SinoPac Securities promotes and sells ESG funds in the ESG Fund Section, please visit the Rich Club ESG website.
Establishment of the SinoPac+ ESG Rating System
Since 2019, SinoPac Investment Services has incorporated ESG into its core research. In 2021, it launched the "SinoPac+ Corporate Sustainability Rating System," based on the international SASB standards as its core framework. This system combines significant financial sustainability indicators with localized design, rating companies from leading to lagging performance on a scale of A+, A, B+, B, and C based on their sustainability performance. In June 2022, the methodology of the "SinoPac+ Corporate Sustainability Rating System" was publicly announced. This system covers all listed companies in Taiwan that publish sustainability reports, using publicly available information as the source for evaluations. The evaluation results meet international standards and offer four major advantages: high standards, broad coverage, ease of understanding, and immediacy, assisting more institutional and individual investors in interpreting ESG ratings and enhancing the visibility of Taiwanese stocks in the international ESG investment market.
In 2024, the SinoPac+ Corporate Sustainability Rating System officially launched on the ESG IR Platform of the Taiwan Depository & Clearing Corporation, making it the only financial institution in Taiwan that provides sustainability ratings for Taiwanese stocks. The system covers 61 industries and has completed the establishment of indicators for all industries in Taiwan, with a total of 603 corporate evaluations completed. The methodology and evaluation results of the SinoPac+ Corporate Sustainability Rating System are published on the SinoPac Securities ESG website, establishing a bridge between companies and investors.
SinoPac Securities' regular investment platform, "Rich Saving Club," also utilizes this rating system to continuously introduce high-performing investment targets, allowing small investors to seize opportunities for sustainable investment and track the carbon reduction performance of their investment portfolios. As of the end of 2024, a total of 11 net-zero and low-carbon-related investment portfolios have been launched on the "Rich Saving Club" platform, enabling investors to participate in the long-term growth of high-quality ESG companies through a long-term investment approach. Based on the results of the SinoPac+ Corporate Sustainability Rating, in 2024, the platform will continue to feature six high-quality ESG investment portfolios focusing on high dividend yields, sustainable net-zero emissions, electric vehicle energy supply chains, and companies emphasizing nature-related financial disclosures.
Sustainable Financial Products and Services
SinoPac Securities regularly sends out e-newsletters covering ESG-related topics to help customers understand the latest ESG trends and associated risks and opportunities in the market. This is combined with the "SinoPac+ Corporate Sustainability Rating System," which provides a comprehensive assessment of the sustainability performance and risks of investment targets. The evaluation results are incorporated into short analyses of individual stocks, allowing customers to better understand the various aspects of ESG investment and further promote ESG wealth management products. The related promotional activities are as follows:
Establishment of the "ESG Fund" Section on the "Rich Club ESG" Website
A dedicated section for ESG funds has been set up on the wealth management trust platform, categorizing ESG fund products based on their characteristics, investment themes, and other key factors into four major categories: natural resources, environmental protection, net-zero carbon emissions, and sustainable ESG themes. This encourages investors to respond to environmental, social, and corporate sustainability practices while enabling them to seize investment opportunities brought by ESG/sustainability.
Introduction of ESG-Themed Products
In 2024, SinoPac Securities actively participated in fundraising activities for ESG-related funds from various fund companies, including SinoPac SITC, China Trust SITC, and Franklin Templeton Investments. New offerings include integrated ESG investment analysis, impact investing, and other ESG-related fund themes, covering sustainable topics such as finance, demographics, impact investing, and climate change. A total of 9 new ESG/green fund targets were added. The number of ESG funds on the wealth management trust platform that meet the criteria recognized by Taiwan's regulatory authorities or the EU's SFDR Articles 8 and 9 has reached 363, accounting for over 40%. In the future, SinoPac Securities will continue to expand its offerings of related products, and all partnering fund companies must sign the "Institutional Investor Due Diligence Governance Code" or adhere to the Principles for Responsible Investment (PRI).
Marketing
Based on market outlook and investment trends, the company’s wealth management website provides a diverse range of investment products and financial knowledge related to investment management. Additionally, through daily morning broadcasts and video training, as well as product briefings related to ESG themes held at branches in the north, central, and south regions, sales personnel convey timely and comprehensive investment information to customers. A total of 5 customer briefings and 120 educational training activities have been conducted, continuously promoting ESG green funds and providing comprehensive wealth management services.
SinoPac Securities regularly organizes educational training courses on ESG evaluations for institutional investors, hosting a total of 18 sessions in 2024. Additionally, in 2024, three ESG forums were held to inform attendees about the ESG transformations in Taiwan's capital market, the impact of carbon pricing on businesses, the SinoPac+ Corporate Sustainability Rating System, and green and transitional finance action plans.
Please visit the ESG Investing Website - ESG Fund Section