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Sustainable Environment

TCFD Management Process

The increasing frequency of extreme weather in recent years indicates that the crisis brought about by global warming is imminent. As a result, governments around the world are paying more attention to the issue of climate change, and through the enactment of regional laws and regulations in various countries, including the European Union's Carbon Border Adjustment Mechanism (CBAM), and the enactment of Taiwan’s own Climate Change Response Act, we have been compelled to incorporate the issue of climate change into the management of ABC's operations. 
ABC-ATEC not only identifies the operational risks associated with climate change but also references the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) issued by the Financial Stability Board (FSB). We incorporate the four core areas of disclosure – "governance,""strategy,""risk management,"and"metrics and targets" – into our operational management. We also disclose our governance performance in our sustainability report. Our aim is to provide stakeholders with insights into how we address the impacts of climate change, related risks, opportunities, and our corresponding mitigation measures.
TCFD

Core Elements of TCFD

Governance
  • When making major decisions, the Board of Directors incorporates climate change transition risks and physical risks into the key topics of the annual work goals. It also plans short-, medium-, and long-term goals. Department heads serve as members of ABC-ATEC's ESG Committee, urging each department to implement the annual and medium- to long-term sustainability development goals, covering the three key areas of environmental, social, and corporate governance (ESG).
  • The Company's TCFD questionnaire will be jointly filled out by the executives and Management Committee to assess the probability of the occurrence of risks or opportunities and the impact on the Company. The ESG Committee, as the highest internal organization promoting corporate sustainability, discusses response plans after evaluating the TCFD risks and opportunities for the year. Subsequently, improvement measures are implemented, and annual follow-ups are conducted to discuss areas for continuous improvement.
Strategies
  • The short-, medium-, and long-term climate risks and opportunities identified by the Company are as follows.
  • With reference to the Task Force on Climate-related Financial Disclosures (TCFD) issued by the Financial Stability Board (FSB) in 2017, review and assess the climate change risks and opportunities faced by ABC-ATEC, and prepare a plan for the implementation of ESG initiatives. change risks and opportunities that the Company is currently facing, and to formulate corresponding action plans.
  • The Company has not yet conducted analysis on different climate-related scenarios.

Risk Management
  • Please refer to the figure below for the risk management process.
Metrics and Targets
  • The indicators used by the Company to evaluate climate-related risks and opportunities in accordance with the strategy and risk management process include: policies and regulations, technology, market, reputation, immediacy, long-term development, resource efficiency and energy sources.
  • The company sets climate-related goals:
  • The recent goal is to maintain global temperature rise at 1.5°C. The Company is committed to reducing Scope 1 and Scope 2 emissions by 42% by 2030 compared to the 2021 base year. For the achievement of this goal.
  • In 2023, the Group's renewable energy utilization rate reached more than 10%. For the achievement of this goal.
TCFD
TCFD

Financial Impact Corporate Action Plan

TCFD
ABC Taiwan Electronics Corp