Task Force on Climate-related Financial Disclosures (TCFD)
Taipower follows the framework of the Task Force on Climate-related Financial Disclosures (TCFD) when gradually incorporating climate change risks into its climate change management. It discloses information regarding climate risks and opportunities in line with its principles.
Governance
As a provider of electricity in Taiwan, Taipower's Board of Directors recognizes that addressing medium- to long-term climate change is a significant management challenge. Predicting future climate change and accurately assessing the potential social changes and their impacts on Taipower's business environment is highly challenging. However, despite the high level of uncertainty, Taipower strives to avoid or mitigate future losses through highly accurate risk assessment and analysis. Through this process, Taipower aims to identify new business opportunities and achieve sustainable operations that align with society's expectations.
Taipower upholds operational transparency and believes that a sound and efficient board of directors provides a solid foundation for corporate governance. In driving climate change and sustainability management strategies, the board also plays supervisory and guiding roles, authorized the establishment of the Sustainable Development Committee to assist in overseeing corporate sustainability and climate change-related practices and regularly reporting its activities and resolutions to the board.
Climate Change Strategy and Risk Management
Taipower discloses and manages climate risks and opportunities in accordance with the TCFD framework. This process is as shown in the figure below. The "Task Force on Climate-related Financial Disclosures" is supervised by the executive secretary of the National Council for Sustainable Development (the Vice President in charge of the Planning Department) and convenes internal units to identify and analyze climate risks and opportunities. After assessment, it formulates and discloses corresponding strategies, indicators, goals, and current implementation results for high-risk events and high-potential opportunities related to transition and physical risks.
Taipower's Climate Risk and Opportunity Management and Disclosure Process
Identifying Climate Risks and Opportunities
Taipower's "TCFD Task Force" convenes communication meetings that invite relevant internal units to discuss and identify risks and opportunities. In terms of transition risks, a total of 9 risks were identified in 4 categories, including policies and regulations, technology, markets, and reputation.
List of Taipower's Climate Transition Risks
List of Taipower's Physical climate Risk
List of Taipower's Climate Transition Risks
| Category | Risks |
| Policies and Regulations | Increase in cost of GHG emissions. |
| Technology |
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| Markets |
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| Reputation |
|
| Category | Risks |
| Immediate |
|
| Long-Term |
|
| Category | Opportunity |
| Resource Efficiency |
|
| Energy Sources | Diversified energy sources. |
| Markets |
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| Products and Services | Increased trading volume on the electricity trading platform. |
| Resilience |
|
Climate Risk and Opportunity Analysis
Taipower's "TCFD Task Force" gathers together internal units to analyze the probability and level of impact of climate risks and opportunities through questionnaires. There are two methods for measuring the probability of occurrence: qualitative and quantitative, and the measurement is divided into five levels. The principle for measuring the level of impact is integrated with the existing risk management mechanism. It incorporates financial measurement principles, such as business operations, cost increases, long-term cost increases, and the measurement is divided into five levels. Opportunities are examined from the perspective of business practices, and whether climate-related opportunities can improve climate governance, business opportunities, or financial performance is determined based on experience. The measurement of opportunities is also divided into 5 levels.
Climate Risk Matrix
Climate Opportunities Matrix
