台新金控

Expand Applicability

The policy applies to Taishin FHC, its subsidiaries, and the trading counterparts and parties involved in the investing/financing activities of overseas branches/institutions. The policy serves as the basis for setting management rules for different business activities and asset categories.

Public Commitment

In response to the goal set forth in the Paris Agreement to control global temperature rise within 1.5°C, the Company made a commitment to reduce Scope 1 and Scope 2 emissions in 2030 by 46% compared to the baseline year (2019). We also set carbon reduction goals for Scope 3 asset categories based on the SBT methodology, in order to work towards net zero emissions.

ESG topics of Concern

Taishin cares about ESG topics and has incorporated this principle into its business evaluation process, taking action to show that we care about sustainability issues.

• 【Environmental】：We expect trading counterparts to implement low carbon transition in their business activities, raise their environmental protection awareness, and pay attention to biodiversity.
• 【Social】：We expect trading counterparts to take diversity and equality seriously, pay attention to local communities, improve labor rights and interests, and pay attention to occupational health.
• 【Governance】：We expect trading counterparts to strengthen their corporate governance structure, to not violate environmental and social regulations, and strictly abide by financial regulations for the prevention of money laundering.

Establishment of Driving Business Rules

Taishin expects trading counterparts to uphold the spirit of sustainability, and establish ESG management measures, indicators, and goals. To effectively assess and manage ESG risks, we took trading counterparties and the contents of transactions into management according to different levels. All subsidiaries shall comply with the Sustainable Finance Policy and provide financial products and services aligned with the spirit of sustainability.

To achieve sustainable finance and drive the industry transition, Taishin expressly stated specific industries and trades those are prohibited, decarbonization strategies, companies that it should avoid cooperating with, and industries for careful assessment. Taishin also actively supports the economic activities with more sustainability and forward-looking, and makes substantial contributions to the mitigation of climate change.

• Industries or counterparties prohibited: Industries or trading counterparts that produce a direct or potentially significant negative impact on ESG, such as: industries involved in pornography, manufacturing of illegal weapons, and health-endangering activities; or trading activities in which operations or use of fund are/is detrimental to ESG factors, such as: activities in serious violations of financial laws and regulations (money laundering, corruption, etc.) or other laws and regulations.

• Decarbonization commitment:With coal companies (including coal mining, coal-fired power plants, and coal infrastructure) and unconventional oil & gas industries, including global investment and financing activities should plan a timetable for no new undertakings or investments in various businesses from 2022 to 2030; and aim to completely phase out of investing/financing coal-related companies by the end of 2030 and unconventional oil & gas businesses by the end of 2040.
• Avoided from direct cooperation or prudent assessment is required: 7 industries included in the list of high carbon emission industries (e.g., Petroleum and Natural Gas Mining, Cemet, Electricity and Gas Supply, Manufacture of Basic Metals, etc.) or for business types which can be traceable for purpose of funds are also required to carefully assess the harmful to the ESG-oriented from operational activities. (examples of such industries: tobacco and alcoholic beverages, those caused negative impacts on biodiversity and the ecosystem, those caused systematic damage to the environment or health, or those in serious violation of laws, human rights, and occupational safety regulations, etc.)
• Industries to which active support may be given: Industries engaged in sustainable and forward-looking economic activities, such as: those involved in renewable energy, water recycling or frontier technologies, energy conservation or energy storage facilities, protection of natural resources and biodiversity promotion, etc.

Development of the Voting Policy

Taishin is aligned with the long-term interests of fund providers (including customers, beneficiaries, or bank shareholders) through appropriate concern and dialogue with investees, improving the quality of invest[1]ees' corporate governance through good interactions, and further driving industrial and economic development.

Comprehensive Review and Management

All industries, businesses, and customers that Taishin deals with "should" comply with the principles set under the sustainable finance policy. Taishin carefully evaluates if trading counterparts or transactions have potential risks that will harm the environment or society, and if there are actions that negatively impact ESG topics. The review process includes three stages: evaluation, inspection, and comprehensive review, and items that require follow-up are periodically examined after approval.