Economic Sustainability & Climate Change Risk Management
The issue of climate change has gradually attracted attention, and the impact of climate change caused by global warming has become increasingly significant. The company takes environmental responsibility seriously and recognizes that poor energy management leads to both increased costs and negative consequences for the planet.
In making policy, the company is guided by reports issued by the TCFD (Task Force on Climate-Related Financial Disclosures) under the Financial Stability Board (FSB). "Recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) " has four core elements: Governance, Strategy, Risk Management, and Metrics and Targets, upon which the TCFD framework is based. The TCFD framework evaluates major climate-related risks and opportunities on business operations and proposes solutions. It has also formulated climate-related metrics and targets that can be managed sustainably. In April 2022, Evergreen Steel Corp. signed on to become a supporter of TCFD. In June 2023, Evergreen Steel published its first "TCFD Report", and its second " TCFD Report " in June 2024.
Board of Directors- Supervise the governance of climate change issuess
The Company's Board of Directors is responsible for supervising the implementation plan and effectiveness of climate change strategy, and established the Sustainability Committee. The TCFD team of the Environmental Sustainability Group under the Sustainability Committee is composed of personnel assigned by relevant departments to promote and implement climate change-related issues and introduce risk management, and effectively establish a management mechanism through risk identification, risk evaluation, risk response, and risk monitoring. The Sustainability Committee holds at least 2 meetings annually and reports relevant implementation results to the Board of Directors. The Sustainability Committee has reported relevant implementation results of 2023 to the Board of Directors on December 20, 2023.
Climate Change Management Milestones
Climate Change-related training session
On July 21, 2022, external speakers were brought in to give a training session on "Carbon Management Trends and Responses to Net-Zero Emissions" for all the directors and midlevel and senior managers from related departments.
On August 18, 2022, to enhance awareness and promote the concept of net-zero emissions, the Company organized the "Corporate ESG Risk & Opportunities Guidelines – Challenges and Opportunities Facing Corporations Moving Towards Net-Zero Emission" session for managers from related departments.
On July 14, 2023, to understand the impact, risks, and opportunities from climate change and zero-emissions policies on businesses, the Company hired an external speaker to speak on "Risks and Opportunities from Climate Change and Zero-emission Policies on Businesses" for all the directors and midlevel and senior managers from related departments.
Signing Climate-related Initiatives
Evergreen Steel Signed on to be a Supporter of TCFD in 2022, and joined the Industrial Carbon Neutrality Alliance and Taiwan SHP Industries Alliance in 2023 to actively participate in inter-industry climate-related initiatives.
The process for management of climate-related risks and opportunities
The Company's TCFD team has identified climate-related risks and opportunities and implemented the management process below:
Climate Action
In the face of global climate change, the Company followed the Task Force on Climate-related Financial Disclosures (TCFD) framework in 2023. We identified significant risks and opportunities that may impact our operations and developed corresponding response strategies. Additionally, we established climate-related indicators and goals for sustainable management, aiming to create greater benefits and value for the company.
Climate-related Scenario Analysis
Result of identification of climate-related risks and opportunities
The Company’s TCFD Risk/Opportunity Taskforce convened a climate change risk and opportunity identification meeting, identifying 5 climate-related high-level risks and 3 climate-related material opportunities after conducting evaluation based on TCFD suggested framework.
Overall Assessment of Climate-Related Risks/Opportunities and Strategies
The challenges of climate change faced by the Company include government collection of corporate carbon tax, renewable energy laws and regulations, customer behavioral changes, floods caused by extreme rainfall events, and tropical cyclones. Through pragmatic evaluation of strategies and financial impacts, the company is confident that its financial position will remain robust and sustainable in the short, medium, and long term, while also generating increased profits. The opportunities of climate change faced by the Company include access to new markets, utilization of modes of transportation with higher efficiencies, and use low-carbon steels. The Company’s management team has conducted practical assessment of strategies and financial impacts and deems that the Company is able take advantage of the opportunities brought by climate change, maintaining sustainable development and generating greater earnings .
Renewable Energy Installation Target
In response to the government’s net-zero emissions goal by 2025, the Company has installed renewable energy equipment and made follow-up plans as described below:
- Installed a total of 2,221.8 kW of solar PV facilities on the rooftops of the Hsinchu Factory (1,722kW) and Xinying Factory (499.8kW).
- The Company installed solar PV facilities (1999.56 kW) on buildings A, B and C at the Xinying Factory in 2023, meter power generation in Feb 2024.
- Installed 547 kW of solar PV facilities in Xinying Factory in 2024.