Climate Change Management-Corporate Governance-Taipower Sustainability Section - Taiwan Power Company

Climate Change Management Framework

In 2024, Taipower deepened its identification of climate-related risks and opportunities by holding a "High-Level Climate Change Risk and Opportunity Identification Workshop." To ensure the scientific rigor and reliability of the analysis, the Company referred to the International Energy Agency (IEA)'s World Energy Outlook and the United Nations Intergovernmental Panel on Climate Change (IPCC)'s Sixth Assessment Report (IPCC AR6). Considering the diverse scenarios, including Taipower's operating characteristics, the workshop involved the Chairman, President, and senior executives from the four major business divisions, four corporate systems, and the Research Institute. This group comprehensively assessed the potential short-, medium-, and long-term impacts of climate change on the Company's operations, identifying risks and opportunities from a macro perspective and establishing corresponding response strategies.

Risk Assessment and Identification

In 2024, Taipower identified 13 risk events. For each identified risk, the Company defined scenario-based control measures and began conducting rolling reviews to evaluate performance and track changes. This strengthens both proactive prevention and reactive response capabilities. Through systematic risk management, Taipower analyzes interconnections between risks and sustainability issues, enhances organizational risk awareness, identifies emerging opportunities, and advances toward its long-term sustainability goals.

Climate Risks and Opportunities Analysis

Through its detailed "High-Level Workshop" discussions,6 categories of physical risks,6 categories of transitional risks, and 9 categories of opportunities were identified. These were subsequently analyzed based on the likelihood of occurrence and the severity of their impacts, and then prioritized. Taking into consideration the Company's business development strategy, its core mission of ensuring a stable power supply, and the direction of the national energy policy—as well as factors to ensure effective resource allocation and maximize management efficiency—a final set of 5 key physical risks,3key transitional risks,and 3 key opportunities was selected as Taipower's priority focus areas.

Identification, Analysis, and Assessment of Climate Change Risks and Opportunities

Metrics and Targets

To measure performance and track progress in climate change management,Taipower has established corresponding indicators and targets in line with the seven major categories of metrics recommended by the TCFD.In addition,Taipower systematically inventories and monitors its greenhouse gas (GHG) emissions,strengthens the management of its total carbon emissions,mitigates climate risks,and supports its low-carbon transition goals.