Scope |
Risk Factors |
Management Measures / Adaptation Plans |
Low Carbon Transition |
Reduce own operational and investment-related carbon emissions |
- Inventory carbon emissions from Scope 1 and 2 and plan mitigation measures (such as installing solar panels, using renewable energy, etc.)
- Follow PCAF methodology for carbon inventory of investment and financing activities
- Set targets and reduce carbon emissions according to SBTi
|
Investment |
Stock and bond investments |
- Fulfill the responsibility of asset owners or managers by considering the corporate social responsibility performance of investment targets
- Avoid investing in enterprises with direct or potential environmental and social impacts, such as coal mines or coal-fired power plants, and implement responsible investment
- Promote or assist enterprises in sustainable operation issue awareness and implement ESG actions through negotiation
|
Credit |
Corporate loans |
- Through green financing, support renewable energy projects, green buildings, green equipment, and other energy-saving and low-carbon capital expenditures to help enterprises transition and respond to climate risks
- Link credit conditions to enterprises' comprehensive performance in environmental, social, and corporate governance or sustainability indices, encouraging enterprises to invest more actively in resources
- Refer to the guidance of the Banking Association's Equator Principles 4.0 for corporate credit review
- Include ESG considerations in the credit process to avoid funds flowing to high-carbon projects such as coal-fired power project financing
|
Real estate collateral loans |
- Regularly assess and monitor the potential risk of real estate value impairment caused by climate change, continuously improve the database of physical risks, analysis methods, and scenario testing
- Incorporate flood risk factors - hazard (e.g. heavy rainfall, increased typhoon frequency) and vulnerability (e.g. whether the area is prone to flooding) into the real estate collateral zoning standards, and set lending limits and loan-to-value ratios according to the zoning to control potential loss risks
- Regularly conduct mid-term management for high flood risk cases, add a special note to the system for real estate collateral located in high climate risk areas with high loan-to-value ratios, and carefully assess collateral value and loan-to-value ratios
- Refuse evaluations for collateral labeled as pollution-related sites, or those announced by government agencies as subject to the "Soil and Groundwater Pollution Remediation Act"
- Strengthen review, inspection, appraisal of collateral, control of credit conditions, and raising of approval authority for collateral cases in high landslide risk communities
|
Own operation |
Disaster response |
- Developed the "Emergency Response and Crisis Management Measures" based on the competent authority's "Financial Institution Disaster Emergency Response Measures Manual Template" and operational overview to ensure operational continuity and organizational resilience
- The "Continuous Information Service Management Regulation" takes into consideration power supply interruption and regional flooding recovery
- E.SUN Bank collaborates with external consultants, introduces AR6 scenario data, domestic disaster potential data, and analytical techniques, and conducts a physical risk assessment of its own properties (from 2030 to the end of the century) to plan 100% adaptation measures for existing locations and to serve as a reference for selecting new locations. By 2025, high-risk operational locations should be reduced to within 2%, and existing high-risk locations need to be vigilant or prepared early for heavy rain special reports, such as installing floodgates, to reduce climate impacts through early monitoring and adaptation
- E.SUN Bank implements sustainable procurement standards to manage suppliers
- Established designs and measures to avoid greenwashing in the provision of green-related financial products and services, and sets up internal mechanisms for control
|
Supplier management |
Compliance and reputation |