Climate Change Response

Task Force on Climate-related Financial Disclosures (TCFD)

In order to more fully understand the impact of climate change on Taihan Technology, the TCFD (Task Force on Climate-Related Financial Disclosures) framework will be adopted from 2022 to identify risks and opportunities, assess possible financial impacts, and then set responses based on the identification results. 


Materiality Analysis of risks and opportunities of Climate Change

In recent years, the operational impacts caused by climate change have increased rapidly and are full of high uncertainties. Therefore, Taihan Technology uses the TCFD method to identify 8 major risks during its operations, evaluate and manage them to reduce the financial impact on the company.

Risk TypeRelated topicspotential financial impactImpact time preventive solution
Policy and Regulatory RiskTotal GHG emission control, carbon fees, carbon
taxes, and carbon trading lead to increased costs
short term1. New factory building planning and renewable energy power generation equipment
2. Plan to purchase renewable energy certificates
International Net Zero Carbon Emissions
The cost of renewable energy construction and
low-carbon equipment purchase increases
medium term1. New factory building planning and renewable energy power generation equipment
2. Gradually replace old and energy-consuming machines
Impact on reputationThe impact of revenue reduction caused by
failure to meet customer needs
medium term1. Regularly publish sustainability reports to reveal the company’s sustainability direction
2. Actively participate in sustainability evaluations
Raw material supplyNew technology investmentmedium termApplication of recycled plastics and recyclable plastics technology
Changing customer needsCustomer requirements for environmental
friendliness in the production process
medium term1. Increase the proportion of renewable raw material production
2. Actively develop diverse customers
energy supplyNational energy transition policies or geopolitical
factors lead to energy shortages, production
interruptions, and rising electricity bills.
medium termIncrease the proportion of renewable energy in electricity consumption
Extreme weather leading to
increased severity
of heavy rains, floods or droughts
The number of extreme weather days is increasing, and the chances of flooding and
water shortages are increasing, leading to
shutdowns, production reductions and
equipment damage.
long term1. Improve factory water efficiency
2. Check whether the factory area is a high-risk area for drought or flooding at any time
Average temperatures continue to riseThe usage time of cooling equipment increases,
and the consumption of refrigerant and electricity
long term1. Set the air conditioner at 28 degrees
2. Promote energy conservation and carbon reduction internally
Opportunity typeRelated topicspotential opportunitiesImpact time
resource efficiencyRecyclePackaging materials and water recyclingmedium term
energy sourceActively participate in the carbon trading market and government incentive policiesObtain additional carbon rights through the carbon trading market and government incentive policiesmedium term
Renewable Energy PlanBuild solar energy in advance, and put excess renewable energy into carbon trading or use it yourselfmedium term
technological innovationThe energy consumption and pollutants generated per unit of product production are reduced, and the overall production cost is reduced.long term

Scenario Analysis - Physical Risk

Scenario Analysis-Transition Risk

Climate Change Response Strategies

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