Biodiversity Impact Analysis
| 1 |
In accordance with the LEAP analysis approach, the L (Locate) phase emphasizes whether direct operations and value chains impact the natural environment, specific biomes, or ecologically sensitive areas. Therefore, layer overlay analysis is conducted for biodiversity hotspots by combining the coordinates of the Company's operational sites in Taiwan and investment clients' factories with areas designated under key domestic conservation regulations or plans. |
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| 2 |
In alignment with parent company SinoPac Financial Holdings, the Company conducts nature-related risk and impact assessments. In addition to disclosing exposures in nature-sensitive sectors per the TNFD Financial Institutions Guidance, the Company references the LEAP-FI methodology guidelines and utilizes the ENCORE (Exploring Natural Capital Opportunities, Risks and Exposure) tool. This synthesizes a materiality matrix of sectoral dependencies and impacts across the holding company's investment portfolios to understand overall nature-related risk exposure. Furthermore, focusing on high-exposure and high-risk industries, the Company collects sector-specific data on individual investee entities to identify key ecosystem services and impact drivers, thereby determining counterparties' degree of impact and dependence on natural capital. |
| 3 |
Sector Analysis: SinoPac Securities and its domestic and overseas subsidiaries classify nature-sensitive versus non-sensitive industries based on the latest TNFD guidelines and the National Financial Sector Nature-Related Risk Research Report. Using sector dependency and impact ratings established via the ENCORE tool, nature-sensitive exposures are plotted on the top 20 industry dependency and impact matrix. The proportion of investments in nature-sensitive sectors relative to the overall investment portfolio is calculated at 5%. The top five sectors with high dependency and impact on nature are, in order: |