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".
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.
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:
In the face of global climate change, the Company followed the Task Force on Climate-related Financial Disclosures (TCFD) framework in 2022. 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 team organized meetings to identify climate-related risks and opportunities and identified 5 major climate-related risks and 3 climate-related opportunities after conducting an assessment in compliance with TCFD recommendations.
Assessment of Climate-related Risks and Strategies
Assessment of Climate-related Opportunities and Strategies
Renewable Energy Installation Target
In response to the government's plan to achieve net-zero emissions by 2050, the Company's planned targets for renewable energy installation include:
- Current installation is a total of 2,221.8 kW of solar panels on the roofs of the Hsinchu Factory (1,722kW) and the Xinying Factory (499.8kW).
- The Company plans to add another 1,999.8kW of solar panels in Phase 1 of the Xinying Factory in 2023.