SinoPac Subsidiaries

Incorporate ESG Factors into Fixed Income Underwriting 

According to the Responsible Investment Management Guidelines, SinoPac Securities incorporates ESG issues into the evaluation criteria of the investment analysis and decision-making process for bond underwriting business. Through the KYC process, the Company gains an understanding of issuers’ backgrounds and evaluates their performance across various ESG dimensions. The Company prohibits underwriting activities involving controversial industries, such as pornography and controversial weapons manufacturing, and reviews whether issuers are exposed to ESG-related factors, including negative news, climate change, human rights, and corporate governance issues. For high climate-risk industries—including those with high carbon emissions (oil & gas, metal mining, power generation, chemical material manufacturing, industrial manufacturing - motor vehicle manufacturing, industrial manufacturing - manufacturing of basic metals and fabricated metal products, cement, shipping, and aviation) —as well as sensitive economic activities (including gambling, food safety concerns, hazardous radioactive materials, non-medical or harmful genetic engineering, and the manufacture of non-bonded asbestos fibers and polychlorinated biphenyls [PCBs]), the Company conducts prudent assessments. Response measures may include enhanced analysis and justification, higher approval authority requirements, and position limit controls. An exception management process has also been established to avoid significant adverse impacts on the environment or society.

SinoPac Securities complies with the Sustainable Development Bond Operational Guidelines issued by the Taipei Exchange (TPEx). For bonds with designated use-of-proceeds, the Company engages with issuers to ensure that the proceeds are allocated to eligible purposes in accordance with applicable requirements. For sustainability-linked bonds without designated use of proceeds, the Company assists issuers in establishing Sustainability Performance Targets (SPTs). The Company encourages issuers to contribute positively to environmental objectives by directly investing in ESG-related projects or indirectly achieving energy conservation, carbon reduction, or waste reduction through the adoption of Science Based Targets initiative (SBTi) targets.

All Sustainable Development Bonds underwritten by SinoPac Securities have obtained qualification recognition from the Taipei Exchange. In 2025, SinoPac Securities acted as the lead underwriter for Bank SinoPac’s Sustainability Bond and BNP Paribas Taipei Branch’s Green Bond, with a total issuance amount of NT$600 million. In addition, the Company participated as a co-underwriter in 19 Sustainable Development Bond issuances, including 18 Green Bonds issued by Taiwan Power Company (6 issuances), Taiwan Semiconductor Manufacturing Company (8 issuances), Crédit Agricole Corporate and Investment Bank (2 issuances), United Microelectronics Corporation, and BNP Paribas Taipei Branch, as well as one Sustainability Bond issued by Chunghwa Telecom. The total underwriting amount reached NT$10.4 billion, with the proceeds primarily allocated to greenhouse gas reduction and renewable energy projects.

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

SinoPac Securities conducts customer due diligence (CDD/KYC) in accordance with the listing and OTC review criteria and assessment procedures established by regulatory authorities when assisting clients with public listings and fundraising activities. The company guides issuing companies to promote and emphasize sustainable development, ensuring that the public offering prospectus appropriately reflects their implementation of sustainable development in accordance with the "Guidelines for Items to be Recorded in the Prospectus for Initial Public Offerings of Securities."

With respect to environmental issues, SinoPac Securities explains relevant net-zero transition standards and guidelines to clients during counseling meetings and discusses challenges encountered in the decarbonization process, including limitations, technological requirements, and funding needs. The Company also investigates whether clients disclose greenhouse gas emissions, water consumption, and waste generation data for the past two years; establish policies for energy conservation, carbon reduction, greenhouse gas emissions reduction, water conservation, or other waste management measures; and adopt internal carbon pricing to assess the potential impact of climate change on their financial and business operations.

In addition, the Company evaluates whether clients have assessed how they will address sustainability-related challenges and opportunities over the next three to five years under the premise of sustainable development, and whether risk assessments of environmental, social, and governance (ESG) issues relevant to their operations have been conducted appropriately based on the principle of materiality. SinoPac Securities encourages companies to establish decarbonization transition plans or climate adaptation strategies and related targets. Through ongoing counseling meetings, the Company monitors implementation progress and tracks the feasibility and execution of sustainability and decarbonization goals, serving as a reference for due diligence procedures in understanding and communicating clients' ESG-related disclosures and practices.

In 2025, SinoPac Securities continued to position ESG and sustainable development as strategic priorities for its advisory and underwriting businesses. The total scale of its equity listing and fundraising underwriting business reached NT$10.917 billion. SinoPac Securities ranked first among its industry peers in the number of green industry (renewable energy and environmental protection) underwriting cases, demonstrating its continued commitment to supporting capital raising activities for green energy and environmental protection enterprises and assisting companies with public listings.

During the year, SinoPac Securities underwrote a total of eight environmental protection and green energy transactions. These included six lead underwriting mandates and two co-underwriting transactions. The total underwriting amount reached NT$3.522 billion. These companies are engaged in industries such as energy storage system solutions, wind turbine transportation and installation, soil and groundwater remediation services, water resources treatment engineering and operation and maintenance, pollution control solutions, wind power equipment applications, and the circular economy of waste materials.

In addition, SinoPac Securities continued to provide listing advisory services to environmental protection and green energy companies. As of the end of 2025, the Company had assisted a total of 20 companies. These companies operate in areas such as offshore wind power marine engineering, equipment operation and maintenance services, solar power plant development, construction and related services, energy storage system solutions, environmental protection technologies and renewable energy, waste material circular economy solutions, water resource treatment engineering and operation and maintenance, and energy storage facility engineering.