We recognize the potential impact of climate change threats on our operations and value chain and incorporate them into our risk management considerations, identifying both internal and external influences.
To effectively manage climate change risks, we adopt the Task Force on Climate-related Financial Disclosures (TCFD) framework to disclose climate risks and opportunities, and establish corresponding governance, strategies, risk management, metrics, and targets.
These climate-related risks and opportunities may have financial impacts on our revenue, costs, asset values, and more. For further details, please refer to our latest TCFD report.


Climate Change Management Framework
  • TCFD Committee Working Team:
Our governance process includes oversight by the Board of Directors on climate-related risks and opportunities, as well as management's responsibility for assessing and managing the impacts of climate issues. In terms of strategy, we regularly review the climate risks and opportunities of our operational activities, products, and services. The risk management department is responsible for identifying, assessing, and managing climate-related risks.
 
  • Management Structure:
Identifying Risks & Opportunities
  • Step 1 - Climate Issue Collection
    To comprehensively grasp the potential financial impacts of climate change, we regularly collect international climate-related research reports, domestic and international regulatory trends, and significant climate events. We continuously update climate issues highly relevant to our operations and accordingly identify climate risks and opportunities.
    Our risk assessment scope covers transition risks (including policy and regulatory, technological, market, and reputational risks), physical risks (immediate risks and long-term risks), as well as climate opportunities (including resource efficiency, energy sources, products and services, markets, and resilience). A total of 34 climate-related issues have been identified for evaluation and analysis.
  • Step 2--Risk and Operational Impact Analysis
    We adopt a systematic assessment approach, incorporating Nationally Determined Contribution (INDC) targets and Shared Socioeconomic Pathway (SSP) scenarios—specifically SSP1-2.6 (low emissions) and SSP5-8.5 (high emissions)—to analyze the potential impacts of climate change on corporate operations and financial performance across different time horizons (short-term: within 5 years; medium-term: 5–15 years; long-term: beyond 15 years). Based on this analysis, we develop management strategies and tracking mechanisms.
  • Step 3--Identification of Major Risks/Opportunities
    We identify climate-related risks and opportunities that will have a significant impact on the company in the short, medium, and long term. A risk or opportunity is defined as a material issue if its potential financial impact exceeds the materiality threshold (NT$16 million).
    We have identified three significant transition risks in the short term, as well as one derived climate opportunity.
  • Step 4--Development of Response Strategies
    For the identified significant climate risks and opportunities, we develop corresponding action plans and continuously monitor the progress of their implementation.
Climate Change Risks and Opportunities
  • Climate-related Risks
Source of Emissions Climate Issues Impacts and potential financial influences Strategies Subject Matter
Information
Result in
2024
2025
Goals
2030
Goals
Transition Risks Strategy and regulation GHG emission
management,
carbon tax and
carbon pricing.
GHG emission management, carbon tax and carbon pricing. Continuously monitor domestic and international regulatory and policy developments.  
Required by Law Capital expenditure
Mandatory setting renewable energy equipment
for a certain proportion, or need to investment
capital expenditure.
Short-term: Work with solar panel vendor.
The generated renewable energy to be
sold to Taipower
(+) Power generation
of solar power
panels
4,069 4,300 4,500
Increased pricing of
Electricity
(+)Indirect operating costs Short-term: Expand the adoption of
ISO 50001 Energy Management to
improve energy savings and prioritize
the replacement of energy-consuming
equipment.
(+) Energy
Management System
Application
Application
Site 60%
Application
Site 80%
Application
Site 100%
Market Cost of raw material
Increase
(+)Direct operating costs
The harvest progress and yield of grain
commodities affect the fluctuations of
commodity prices.
Short-term: Monitor the changes of
commodity, flexible adjust the timeline of
procurement to master the future prices,
reduce risks about cost volatility
Through decentralized procurement in Europe and the United
States, raw material in stock increased from 1 month to 2 months.
Physical Risks Immediacy Water shortage/drain With evaluation, no material risk and potential
financial impact occurred.
1. Planned to check water facilities to
increase efficiency of water use.
2. Continue to monitor the external
environment. If there is a drought
and water shortage crisis, establish a
crisis management team and flexibly
adjust the production schedule.
 
Longterm Average
temperature
increase
With evaluation, no material risk and potential
financial impact occurred.
1. Equipped with environmental control
equipment in breeding farms.
2. Make sure proper function of dynamos
in our plants.
 
  • Climate-related Opportunities

Source of
Emissions

Climate
Issues

Financial Influences

Strategies

Metric and targets

Result in
2024

2025
Goals

2030
Goals

Climate-related
Opportunities

Market

O1 Voluntarily
expanding
the scope of
greenhouse gas
inventory

(+) Revenue

Short-term:
1. Complete the group-style GHG inventories and
verification for parent and subsidiary companies
ahead of schedule.
2. Formulate strategies of carbon reduction,
and raise awareness to the supply chain and
consumers, and increase our sales growth.

(-) Intensity of GHG emission

1.75

1.89

1.65