Biodiversity Impact Analysis:
In the LEAP analysis process, L (Locate) emphasizes whether our operations and value chain impact the natural environment, specific biomes, or ecologically sensitive areas. Therefore, we overlay the longitude and latitude information of our company's operations in Taiwan and the locations of our investment and financing clients' factories with areas designated by important national nature conservation laws and plans as biodiversity hotspots.
Our company collaborated with its parent company, SinoPac Financial Holdings, to conduct a nature-related risk impact assessment. In addition to disclosing exposure amounts for nature-sensitive industries in accordance with the TNFD Financial Industry Guidance, we also referenced the LEAP-FI methodology document and used the Exploring Natural Capital Opportunities, Risks, and Exposure tool (ENCORE) to compile a materiality matrix of industry dependencies and impacts within each subsidiary's investment and financing portfolio. This provided an overall overview of nature-related exposures, further focusing on high-risk and high-hazard industries. We also collected industry information on individual investment and financing targets, identifying ecosystem services and impact drivers critical to the portfolio, and assessing the impact and reliance of these entities on natural capital.
Industry Analysis: SinoPac Financial Holdings, the parent company, compiled the exposure amounts for nature-sensitive industries across its subsidiaries, calculating that sensitive industries account for 22% of its overall investment and financing portfolio. The top five industries with the highest reliance on and impact on nature are, in order: food (including agriculture); metals and mining; oil, gas, and consumer fuels; shipping; and business services and commercial products.