ESG

Climate Change Risk Management




In response to two high-intensity risks: increased greenhouse gas emission costs and extreme weather events that affect continued operations, the Company has specially introduced both “utility energy saving” and “agent support for shipments” response measures to ensure sustainable operations and reduce related risks. In view of the recent price hike in electricity rates and increase of operating costs, the Company has decided to prioritize the financial impact assessment of “increased greenhouse gas emission costs” after referring to benchmark enterprises’ climate risk cases and the urgency of policies. Meanwhile, according to the SBTI (Science Based Targets Initiative) and the “Paris Agreement” global warming scenario of 1.5 , the increased cost of energy-saving measures is assessed to account for less than 1% of the Company’s annual total revenue. However, the current government policy has not affected the Company, and the aforementioned financial impact is a preliminary assumption. If there are changes in relevant policies, regulations and low-carbon technology development in response to climate change, this assessment will be updated on a rolling basis every year in the future.