Strategy
Sinopac Securities has established the "Guidelines for Managing Climate-Related Risks and Opportunities," which clearly define the procedures for identifying, measuring, monitoring, and formulating mitigation or adaptation measures for climate-related risks and opportunities. The Company conducts annual internal questionnaires to assess how climate risks and opportunities affect its business, strategy, and finances. It has also developed related processes for identification, measurement, monitoring, and reporting mechanisms. Transition risks for Sinopac Securities include economic changes driven by climate-related regulations and policies, stricter carbon pricing, carbon taxes, emission reduction targets, and reporting obligations. Other risks involve impacts from technological advancements or emerging technologies, shifts in customer behavior with increased awareness of environmental sustainability, changes in energy structures leading to power supply instability, rising raw material costs, and heightened stakeholder focus on climate change issues. Physical risks arise from more frequent extreme weather events (e.g., typhoons, landslides, droughts) and long-term climate changes like rising sea levels and higher average temperatures, which may impact assets and operations. Opportunity factors include operational cost savings from improved resource efficiency, revenue growth from offering low-carbon products/services, enhanced corporate image, and expansion into new markets. Sinopac Securities sees opportunities in improving energy efficiency, increasing renewable energy use, expanding green financial products, engaging clients in ESG initiatives, entering new markets through green investments, and building resilience to climate change. These efforts aim to reduce costs, increase revenue, enhance corporate image, and adapt to market trends.