Shin Kong Commercial Bank (SKB) (First Year Implementation)
|Adoption Date:||01 Oct 2021|
|Country of Headquarters:||Taiwan R.O.C|
|Region of Headquarters:||Asia-Oceania|
|Current EPFI Reporting Year/Period:||First Year Implementation|
|Institutional Reporting:||Link to Report|
Please read the important notes and disclaimer for further information on ‘EPFI Reporting’, compliance and publication on the Equator Principles Association website.
Further information on this EPFI may be obtained through the Institutional Reporting hyperlink.
Implementation of the Equator Principles
Taiwan Shin Kong Commercial Bank (SKB) adopted the EPs on 1 October 2021. Taking this step is part of the Bank’s ongoing movement towards the United Nations goals for sustainable development.
In order to fulfill our responsibility as a signatory of EP, SKB has formalized EP related internal policies, relevant guidelines, applications and internal loan approval process as well as products and services.
Scope of Application
The scope of Equator Principles applies to:
- Project finance
- Project-related corporate loans
- Bridge loans for subsequent project finance
- Project-related refinancing and project-related acquisition financing
- Project-related advisory services (SKB do not offer related advisory services)
Equator Principles Assessment Process
In accordance with EP framework, we have established “SKB’s EP Guidelines” and related operational procedures. First, SKB’s business units are initially responsible for identifying and determining if a transaction or case falls into the EP scope. Second, “EP & ESG Checklist” is mandatory for loan applications of all sorts. Third, during the risk assessment process, SKB should establish a cross-departmental task force, Environmental and Social Risk Task Force, to assess the environmental and social risk associated with EP applicable cases. After collecting required documents for environmental and social risk assessment, the task force should review and confirm the eligibility and categorization of EP related cases and conduct the internal environmental and social risk due diligence including Environment and Social Management System, Environment and Social Action Plan, remediation actions, etc. Fourth, SKB’s related departments should make sure that covenant terms and conditions are included in the contracts. Last but not least, business units and related departments should carry on post-loan monitoring at least annually.
Equator Principles Internal Training
SKB has employed external consultants to conduct training programs for senior executives, head office departments, members of the Environment and Social Risk Task Force, and various business units. The purpose is to familiarize them with the mechanisms and processes associated with EP. In addition, SME Banking Dept. will disseminate the EP criteria for EP related cases to colleagues, further enhancing their understanding of environmental and social risk and ensuring the comprehensive implementation of the EP policy. Into the future, SKB will continue to engage in training with regard to EP and ESG in response to international sustainable finance trends and changes in policies and regulations globally.