Response to Climate Change Climate Change Governance Risk and Opportunity Identification Climate Change Related Risks Climate Change Related Opportunities Climate Change Related Objectives
Risk and Opportunity Identification

By adopting the second core element of TCFD framework, which is “strategy”, the Sustainable Development Executive Office, Risk Management Team, together with managers and representatives of each business unit and functional unit held a climate change related risk/opportunity identification and analysis meeting in November 2023. Climate change related risks and opportunities were identified and analyzed based on scenario analysis and PESTLE (Political, Economic, Social, Technical, Legal and Environmental) analysis. The organizational scope and boundry of the assessment included the Taiwan parent company, China/Hong Kong subsidiary and Singapore subsidiary. Other regions may be included in the assessment when deemed crucial.

During the 2023 assessment meeting, 6 physical risks, 12 transitional risks and 8 opportunities were identified. Based on the possibility of occurrence (A) and opportunity benefit/risk impact (B) of the opportunity/risk theme, the opportunity value/risk exposure (A) x (B) was measured for each risk or opportunity, and the timeframe (timeframe <3 yeras is considered as short term; 3~5 years medium term, and >5 years long term) was estimated. After the evaluation, 4 medium risks and 2 high opportunities were identified during the 2023 assessment meeting. Finally, the Sustainable Development Executive Office consolidated the results of risk and opportunity identification, financial impact, and countermeasures, then submitted the results to the Sustainable Development Committee, and reported the implementation status to the board of directors.

A Transitional RiskB Physical Risk
A1Carbon TariffsA7Energy Intensive Users' Requirement (10% Renewable Energy)B1Flooding
A2Transition Demand for Low-Carbon Products and ServicesA8Energy Intensive Users' Requirement (Declaration Requirements for Chiller Groups and Compressed Air Machines)B2Extreme Temperature Changes
A3Taiwan Carbon FeeA9Water Consumption Fee LevyB3Rising Sea Levels
A4Sustainable Aviation FuelsA10Green ShippingB4Water Scarcity
A5Reputation RisksA11Increased Climate-Related Litigation Risks for Inadequate Emission ReductionB5Increased Contractual or Credit Risk
A6Foreign Carbon FeeA12Change in Customer PreferencesB6Climate Change Triggering Insurance Abandonment Trend
C Opportunity
C1Low-Carbon Product/Service OpportunitiesC5Opportunity to Enhance Organizational Resilience
C2Opportunities from Changing Customer PreferencesC6Adoption of More Efficient Transportation Methods
C3Entry into New MarketsC7ncrease Recycling and Reuse Rates
C4Financial Institution Incentives - Sustainable Linked LoansC8Use of Low-Carbon Energy