Responsible Finance
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- Sustainable Capital Market
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ESG Fund Sales
Overall ESG fund sales of SinoPac Securities in 2023 was NT$465 million. The overall AUC was NT$648 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 Evaluation System
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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 uses publicly available information as the source of information for evaluations and uses financially significant sustainability indicators and localized design to classifies companies into five ratings based on their sustainability performance. The evaluation results meet international standards, with advantages of high standards, wide coverage, easy to understand and immediacy and became important metrics for sustainability investment, 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 are announced on the SinoPac Securities Rich Club ESG website.
SinoPac Securities Investment Service Corp. continued to increase the number of companies evaluated and completed the evaluations of 502 companies in 2023. SinoPac Securities Investment Service Corp. upholds its missions of sustainable finance and financial inclusion and applies the evaluation system on SinoPac Securities' SinoPac Stock Savings Plan platform 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 2023, the Company launched 5 stock savings plans associated with net zero emissions and climate for investors and small capital customers to benefit from the long-term growth of high-quality ESG companies, track the carbon reduction performance of stocks in the portfolio, and grasp opportunities for sustainability investment. SinoPac Securities Investment Service Corp. established the first "PCAF Financed Emissions Calculator" for TWSE in 2023 to help financial institutions resolve the calculation of carbon emissions of investment and lending products. Investors can adjust their investment allocation based on the relevant data and track the carbon reduction effect of their investment portfolio. SinoPac Securities Investment Service Corp. won the Taiwan Sustainable Investment Award for this service in 2023.
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