SinoPac Subsidiaries

Incorporate ESG Factors into Fixed Income Underwriting 

SinoPac Securities incorporated ESG topics into the investment analysis and decision-making process of its bonds underwriting service according to the "Responsible Investment Management Guidelines". The Company understands the background of issuers and performance in each ESG aspect through the KYC process, and avoid providing services to controversial industries, such as pornography, controversial arms. For high-risk, sensitive industries, such as: oil and gas industry, coal-fired power generation industry, cement and concrete manufacturing industry, iron, steel, other metal manufacturing industries, 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, investments must be thoroughly evaluated, more mindfully analyzed and explained, escalate level of authority for approval, the ratio of positions must be controlled, or engage in shareholder activism. Also, an exceptions management process must be established to prevent having a material negative impact on the external environment or society.

Incorporating ESG Factors into Securities Listing Underwriting / Consultation and Capital Raising Services

When SinoPac Securities is providing clients with consultation for securities listing or raising capital, it conducts CDD/KYC according to rules governing review of securities listings and evaluation and inspection procedures of the competent authority, and incorporates ESG factors such as implementation of corporate governance, major labor-management disputes, and major environmental pollution into the consultation, review, and evaluation process; the securities offering prospectus, the Securities Underwriter Evaluation Reports, and the overall opinions of the underwriter are all disclosed on the Market Observation Post System.

ESG Fund Sales

Overall ESG fund sales of SinoPac Securities in 2022 was NT$715 million . The overall AUC was NT$671 million. The ESG funds that are sold comply with the European Union's Sustainable Finance Disclosure Regulation (SFDR), promote environmental or social factors, have a positive effect on ESG, or invest in sustainability targets, including eco-friendly funds that focus on green energy, water resources, energy transformation, climate change, and environmental sustainability. The Company also offers funds that promote social responsibility, smart economy, and ESG/sustainability investments, providing wealth management customers with more diverse investment options that consider ESG.

SinoPac Securities promotes and sells ESG funds in the ESG Fund Section, please visit the Rich Club ESG website.

Establishment of the SinoPac⁺ ESG Evaluation System

SinoPac Securities Investment Service Corp.'s "SinoPac+ ESG Evaluation System" received the Silver Award for ESG Innovation in Institutional influence Group in the 2nd Taiwan Sustainable Investment Awards 2022, and is the only investment consulting company won this award for two consecutive years. 《The 19th National Brand Yushan Award》 「Best Product Award - First Prize」

SinoPac Securities Investment Service Corp. has incorporated ESG into its core research since 2019 and has launched the SinoPac⁺ ESG Evaluation System with the SASB standards as the core framework in 2021. It used financially significant sustainability indicators and localized design to classify companies into A⁺, A, B⁺, B, and C ratings based on their sustainability performance, and published the SinoPac⁺ ESG Evaluation System methodology in June 2022. The SinoPac⁺ ESG Evaluation System covers all listed companies in Taiwan that have published sustainability reports and uses public information as the source for evaluations. The evaluation results meet international standards, with advantages of high standards, wide coverage, easy to understand and immediacy, assisting more corporate and general investors to understand ESG ratings and increasing the visibility of Taiwan stocks in the international ESG investment market. The SinoPac⁺ ESG Evaluation System methodology and the evaluation results of high-quality investment targets are announced on the SinoPac Securities Rich Club ESG website to create a bridge between companies and investors.

SinoPac Securities Investment Service Corp. continued to increase the number of companies evaluated and completed the evaluations of 329 companies in 2022. The Company upholds its missions of sustainable finance and financial inclusion and uses the SinoPac⁺ ESG Evaluation System to identify companies with excellent performance in both EPS and ESG. It also targets high dividend yield, niche supply chain, or industries with high potential to create a variety of customized ESG portfolios. In 2021, the Company launched stock savings plans with ESG high dividend yield, Apple supply chain, and EV supply chain in the SinoPac Stock Savings Plan platform. In 2022, it launched stock savings plans such as SinoPac⁺ ESG RE100 and SinoPac⁺ ESG High Yield Financial Stocks. These investment plans help investors benefit from the long-term growth of high-quality ESG companies and enhance their investments through long-term stock savings.

Sustainable Financial Products and Services

Promotion of ESG information and trends

SinoPac Securities provide consulting services through SinoPac Securities Investment Service Corp., in which the e-newsletter cover ESG-related topics, which help customers understand the latest ESG trends and related risks and opportunities.

ESG individual stock analysis and recommendation

SinoPac Securities uses the SinoPac⁺ ESG Evaluation System developed by SinoPac Securities Investment Service Corp. to comprehensively evaluate the sustainability performance and risks of investment targets, and includes evaluation results into the ESG Equity Note, which allows investors to better understand ESG investments through its ESG evaluation and analysis.

Promotion of ESG wealth management products

SinoPac Securities: Planned an "ESG Fund" section on its ESG Investing Website, and divided ESG funds on the wealth management trust platform by themes, which cover sustainability themes, green energy, water resources, sustainable energy, climate change, smart economy, and social responsibility themes, encouraging investors to support environmental, social, and corporate sustainability operations.

Please visit the ESG Investing Website - ESG Fund Section