Sustainable Investment

■ Responsible Investmentt

Referencing the Principles for Responsible Investment (PRI), E.SUN incorporated ESG issues into investment analyses and decision-making processes, signifying the importance the bank attaches to the corporate social responsibility performance of the invested target. The "Securities Sustainable Investment Management Principles" states that a negative list must be made for industries or enterprises that are potentially controversial, such as the tobacco, firearms, gambling, fur trade, mining and logging industries. Loan applications must be subject to due diligence evaluation and stringently reviewed, and E.SUN will only undertake loans that have been evaluated as posing no adverse effect on the sustainable development of the environment, society, and governance.


E.SUN also incorporates ESG indicators of impartial institutions at home and abroad into investment review standards, such as DJSI, MSCI ESG rating, RobecoSAM score, Bloomberg ESG score, Taiwan Enterprise Sustainability Award, Sustainalytics ESG risk rating, Taiwan Sustainability Index constituent stocks, Taiwan companies Governance evaluation, etc., preferentially selecting medium and low ESG risk companies as investment targets. As of December 2020, E.SUN Bank's bond investments categorized as low-to-medium ESG risk occupied a ratio of 98.66%, and equity investments categorized as low-to-medium ESG risk occupied a ratio of 100%.


Furthermore, through shareholder activism, E.SUN promotes the sustainable development of invested companies through communication with investee companies, participation in shareholder meetings, and exercise of voting rights. For example, in 2020, E.SUN sent emails to more than 80% of the persons in charge of investment targets, expressing that E.SUN not only pays attention to the company's financial performance but also ESG performance, and that the bank hopes to connect business partners in the value chain to work together on climate change, environmental protection and social welfare.

Green bonds amounting to

NT3 billion

Total of green bo1nds

1New Taiwan Dollar 3US Dollar

The bank has the highest issuance among Taiwan's domestic banks, in New Taiwan Dollars as well as foreign currencies. The funds raised are lent to industries in renewable energy, greenhouse gas reduction, and water resources conservation.

In addition to issuing green bonds, E.SUN also assists customers in raising funds for sustainable development activities. Since 2017, it has acted as the underwriter of 7 green bond issuances, with a total underwriting amount of more than NT$7.1 billion, including serving as the underwriter for the first foreign issuance (Crédit Agricole CIB) and the largest issuance made by a private enterprise (Chimei). These efforts made over the years have been continuously recognized by professional institutions and, in 2020, enabled E.SUN to win the title of Best Bond house in Formosa awarded by The Asset for the fifth year consecutively.

■ ESG product promotion

E.SUN incorporates ESG assessments in the review process of wealth management products, and refers to the ESG ratings of third-party impartial institutions (such as Bloomberg, Morningstar, etc.), rigorously screens wealth management products with ESG themes and concepts, and divides the ESG assessment scores into three levels, "positive, neutral and negative." If the product is evaluated as negative, an explanation must be provided and approved by all review members, otherwise it will not be put on the market and offered to customers for purchase. Instruments with positive ESG performance are actively promoted through diversified marketing approaches. In terms of wealth management business partners, E.SUN also simultaneously review their environmental, social and corporate governance practices, and works with partners in jointly promoting ESG-related financial products to achieve sustainable finance.

  • As of the end of 2020, E.SUN put a total of 1,055 wealth management products with ESG themes on the market, and total sales of ESG-themed products reached NT$20.9 billion.
  • E.SUN Securities, on the other hand, is also committed to promote ESG-related products. In 2020, the total sales proportion of ESG-themed products in E.SUN Bank and E.SUN Securities was 17%, enabling the joint promotion of environmental sustainability while improving asset allocation.
76%

Proportion of customers invited to
interact or participate in ESG in 2020.