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Transition Risk |
Short-term |
International Carbon Tax and Quota requirements |
As countries introduce carbon taxes/fees, products become subject to these charges, leading to higher direct costs. |
A financial impact assessment was conducted based on the future conditions for carbon fees and carbon trading costs in Taiwan and Mainland China. Simulations for 2030, assuming normal business development, were performed to evaluate the financial impact of complying with regulatory requirements, including the payment of carbon fees and carbon trading costs. According to the IEA World Energy Model under the STEPS, NDCs, and NZE 2050 scenarios, the ratio of carbon fees to revenue is estimated at 0.21%, 0.22%, and 0.49%, respectively. |
Progressively increase the share of renewable energy each year by installing additional solar panels. |
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Domestic and international GHG reduction requirements |
Stringent regulations will force companies to make additional capital investments in energy efficiency and carbon reduction. |
Investments in energy-saving and carbon-reduction equipment, as well as the purchase of renewable energy, will increase operating costs. |
● Emphasize technological improvements, process optimization, and the replacement of high-energy-consuming, low-efficiency equipment to enhance energy efficiency throughout the production process.
● Increase solar panel installation area.
● Introduce ISO 14001 environmental management system to ensure effective energy utilization |
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Reputational impact |
Failure to achieve climate goals may result in a decline in ESG-related international ratings, potentially impacting corporate reputation and affecting investors' willingness to invest. |
Cannot be quantified. |
● The company publishes annual sustainability reports to inform stakeholders of its energy-saving and carbon-reduction initiatives and strategic direction.
● Actively responding to international organization sustainability-related questionnaires, such as CDP (Carbon Disclosure Project).
● Engage proactively with stakeholders to gather investors' feedback on AirTAC's climate-related initiatives and priorities. |
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Physical Risk |
Short-term |
Extreme Weather Events |
Extreme weather events, such as droughts and floods, can cause operational disruptions. |
Revenue losses due to production interruptions are estimated at NT$130 million per day. |
● Enhance wastewater treatment and recycling, as well as water use efficiency.
● Critical supply chains maintain alternate suppliers and safety stock levels to prevent disruptions.
● Establish emergency response management procedures, enhance the recovery time of critical systems, and rapidly resume business operations. |