Sinolink Securities: Room for Improvement Across ESG Initiatives

4.71
35 ratings

Sinolink Securities is engaged in the securities business, with operations in Securities Brokerage, Investment Banking, Asset Management, Credit Trading, Securities Investment, and Overseas Business segments. An analysis of the company's environmental, social, and governance policies are as follows:


Environment


From an environmental perspective, the company scores unfavorably, outperforming on the Emissions Score front, but underperforming on the Environmental Innovation Score front.


For instance, it has implemented a resource reduction policy, which compares to the presence of a clear policy in the prior year. The company has not implemented a water efficiency policy, with an energy efficiency policy not implemented as well. This compares to the lack of a similar policy in the prior year.


Environmental policy areas the company is currently lacking include Environmental Supply Chain Policy, Resource Reduction Targets, Water Efficiency Targets, Energy Efficiency Targets, the setup of an Environment Management Team, Environment Management Training, Environmental Materials Sourcing, and Toxic Chemicals Reduction.


The company has also not implemented renewable energy use, which compares to the lack of a clear policy in the prior year. The company has also notably not implemented green buildings as well, which compares to the lack of a defined policy in this regard in the prior year.


In terms of its carbon footprint, the company's Estimated CO2 Equivalents Emission Total stands at 5,207 in the latest fiscal year, which compares to 4,660 in the prior year and 5,316 in the year before based on a Median CO2 Estimation Method.


Social


From a social standpoint, the company scores reasonably, particularly outperforming on the Workforce Score front, but underperforming on the Human Rights Score front.


For instance, it has implemented a health and safety policy, which compares to the presence of a clear policy in the prior year. The company has also implemented an Employee Health & Safety Policy, with a Supply Chain Health & Safety Policy not implemented as well. This compares to the lack of a similar policy in the prior year.


The company has produced a rise in Net Employment Creation. The Number of Employees from CSR reporting totals 2,900, relative to 2,792 in the prior year and 2,916 in the year before.


As of the latest fiscal year, there have not been Management Departures, while the prior year saw no departures. Meanwhile, the company experienced no strikes this year, which compares to no strikes in the prior year.


Governance


From a governance standpoint, the company scores reasonably, outperforming on the CSR Strategy Score front, but underperforming on the Shareholders Score front.


The company does not have a Corporate Governance Board Committee, but has a Nomination Board Committee, has an Audit Board Committee, and has a Compensation Board Committee. The company does have a Board Structure Policy and does have a Policy Board Independence in place. The Board has held seven meetings in the last fiscal year, which compares to 7 in the prior year. The Board size currently stands at nine members based on the latest annual/ESG report.


The Board has an average tenure of 4.8 years, which compares to 5.1 in the prior year. Board diversity stands at 22.2% for gender diversity and lacks cultural diversity.


The company has implemented a Policy for Executive Compensation Performance and has not tied Executive Compensation to ESG Performance. The company has not implemented a Policy Executive Retention, and has implemented a Succession Plan, and has implemented an External Consultants policy.


The company has not implemented CEO-Chairman Separation and does have its CEO as a Board member. Its chairman is not an ex-CEO. Board member term duration stands at three years. In total, senior executives' compensation has decreased in the latest fiscal year. Notably, the CEO compensation is not linked to total shareholder return. Meanwhile, executive compensation is not linked to long-term objectives. Sustainability compensation incentives have not been implemented. There have not been any executive compensation controversies thus far.


Sources:


https://www.csrhub.com/CSR_and_sustainability_information/SINOLINK-SECURITIES-CO-LTD


https://yoursri.com/companies-dx/9d76c055424a9b9b943b92a7dd2d9e3b

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