To implement the climate change-related opportunity and risk management mechanism, the Company has focused on the 4 pillars of the Task Force on Climate-related Financial Disclosures (TCFD): governance, strategy, risk management, and metrics and targets. The Company considers enjoying a clean, healthy, and sustainable environment to be a basic human right, hence its climate risk management and sustainable goals are reinforced in a bid to achieve the goal of controlling global warming by 1.5℃ and realizing “climate neutrality”.

The Company has formulated a 3-stages measure:

Stage 1: Identify the risks and opportunities of climate change, and assess the possibility of occurrence and impact/benefit of the risks and opportunities (including financial impact analysis), in order to evaluate the risk exposure and opportunity value. Furthermore, risks and opportunities are classified into short, medium, and long-term.

Stage 2: Progressively quantify the financial impact of climate change for scenario analysis.

Stage 3: Evaluate internal carbon pricing in the future and link ESG with manager performance.