According to the risk map analysis in 2021, climate change risks are part of the Company's
material risks. Given their potential material financial impact on business operations, the Company took
inventory of and disclosed climate change risks and opportunities according to the TCFD framework,
enabling related stakeholders to grasp climate change risks and opportunities and their financial impact
more systematically.
*Note"Task Force on Climate-related Financial Disclosures (TCFD)" was
officially released in June 2017 by the Financial Stability Board (FSB).
Climate Change Governance
The identification and management of climate change risks and opportunities are handled by
the Environmental Management Committee, and the climate risk issue and environmental risk issue are
reported to the Risk Management Committee on a regular basis in accordance with the Company's risk
management system. Related mitigation and adaptation projects are assessed and approved by the Risk
Management Committee.
In addition, the Risk Management Committee reports the Company's risks (including climate
risks) to the Board of Directors on a regular basis to allow the Board of Directors to understand and
monitor the risks faced by the Company.
Climate Change Risk Management
In 2021, a total of 12 major climate risks were re-examined, four of which belonged to
high-risk impacts on operations. The four were: increase in frequency and severity of
typhoons/hurricanes, increased in the cost of greenhouse gas emissions, increased sustainability
requirements and regulations , and increase in cost to transition to lower carbon emissions technology.
We evaluate the impact of 12 major climate risk factors on TWM's strategy, operations and
financial planning, and a description of relevant response measures. Also, a more in-depth climate
scenario analysis was conducted for four potential high climate risks to understand the impact of
climate risks on TWM under different scenarios.
TWM selects 3 major risks as risk quantification targets to draw a climate risk path map, as
explained below.
The impact on TWM is evaluated based on the hypothesis of climate change ( 2℃ Scenario) with the total
loss due to typhoons in 2019-2030 estimated to reach up to NT$58 million, while investment in low-carbon
technology transition is estimated to be NT$2.05 billion for the same period.
Moreover, TWM is evaluated two different scenarios, when facing the increasing demand and
regulations related to sustainability. In NDC Scenario, we will increase the investment not only by
purchasing green energy and building power generators, but also the cost of carbon fee. Estimated to
require total investment of NT$14.997 billion from 2022 to 2030. In Well-below 2℃ Scenario, we will
increase the investment not only by purchasing green energy and building power generators, but also the
cost by other carbon reductions. Estimated to require total investment of NT$12.646 billion for the same
period.
Climate Risks
Climate Change Scenarios
Financial Impact Factors
Financial Impact
Physical Risk: Increase in frequency and severity of typhoons/hurricanes
2℃ Scenario
Strong winds cause loss of equipment and assets
Flooding leads to loss of equipment and assets
Interruption in operations leads to customer-related compensation costs
Power shortage leads to interruption of operations or increase in operating costs
Total losses due to typhoons from 2019 to 2030 are estimated at up to NT$58 million
Transition Risk: Increase in cost to transition to lower carbon emissions technology
2℃ Scenario
The cost required for "energy efficiency improvement”
Expected to require total estimated investment of NT$2.05 billion from 2019 to 2030
Transition Risk: Increased sustainability requirements and regulations
NDC Scenario
Cost of purchasing green energy
Cost of building power generators
Carbon fee
Estimated to require total investment of NT$14.997 billion from 2022 to 2030
Well-below 2℃ Scenario
Cost of purchasing green energy
Cost of building power generators 3. Input costs caused by other carbon reductions
Estimated to require total investment of NT$12.646 billion from 2022 to 2030
Climate change indicators/goals
TWM manage climate change-related risks and opportunities with five core strategies. In
addition to completing Scope 1, 2 and 3 greenhouse gas inventories, and we have set short-, medium- and
long-term reduction targets, renewable energy use targets, and improving climate change resilience
targets. The relevant goals and adaptation practices are as follows:
Goals
Green energy for self-use/green energy procurement/green energy investment (Note1): For details,
please refer to the Company’s renewable energy 2021 performance and 2030 targets.
Smart energy conservation in equipment rooms and base stations: For details, please refer to the
Company's 2021 energy intensity performance and 2030 target. The 2021 energy-saving performance of
telecom equipment room & base station.
Strengthened financial impact disclosure: One quantified item in 2021; two quantified items in
2019.
Note 1TWM is not planning any green energy investment in the short term, and
will continuously conduct evaluation.
For more information, please refer to 2021 ESG Report, CH2.5.3.
Adaptation practices:
Base station: A total of 1,366 SMR units with high weatherability (Note 1) are used to prevent the
operation interruption caused by drastic temperature change.
IDC: Equipped with generator, uninterruptible power supply system and n+1 backup system to avoid
service interruption caused by disasters.
Mobile base stations: A total of 25 mobile base stations for mobile broadband have been built to
prevent the base stations from being disconnected due to disasters.
Disaster Relief Mobile Communications Platforms: Set up five fixed mobile communication platforms
with more than 72 hours of power backup for disaster prevention and relief operations, and optimize
seven existing mobile communication platforms to facilitate emergency communication services in
disaster areas.
Note 1Ambient temperature of 0~65 degrees is acceptable
For more information about “TCFD Disclosure” and “Physical Climate Risk Adaptation”, please
refer to attachments.
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