Climate Change Risks and Opportunities Management

According to the risk map analysis in 2019, climate change risks belong to the Company's material risks. Considering its material financial impact on business operations, therefore, according to the TCFD framework, the inventory and disclosure of climate change risk and opportunity management are carried out, enabling relevant stakeholders to grasp the climate change risks and opportunities as well as financial impact more systematically.

Climate Change Governance
The identification and management of climate change risks and opportunities are handled by the Environmental Management Committee, and the climate risk issues and environmental risk issues are reported to the Risk Management Committee on a regular basis in accordance with the Company's risk management system, and then relevant 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, identifying four of which with high-risk impacts, namely increased frequency and severity of typhoons/hurricanes, increased costs of greenhouse gas emissions, increase in demand and regulations relating sustainability, and increase in the cost of transformation to low-carbon technology.

Risk Pathway Analysis for TCFD

Climate Change Strategy
For the impact of 12 major climate risk factors on TWM's strategy, operations and financial planning, and the description of relevant response measures.
A more in-depth climate scenario analysis is conducted in terms of 4 potential high climate risks to understand the impact of climate risks in different scenarios for TWM.
Three risks with high potential impact have been selected as the quantitative targets. The impact and effect on TWM has been evaluated based on the assumptions of climate change scenarios. The descriptions are as follows:
Climate Risks Climate Change Scenarios Aspect of Financial Impact Financial Impact
Physical Risk: Increase in frequency and severity of typhoons/hurricanes 2DS Scenario
  1. Strong winds cause loss of equipment and assets
  2. Flooding leads to loss of equipment and assets
  3. Operation interruption leads to customer-related compensation costs
  4. Power shortage eads to interruption of operations or increase in operating costs
The total loss due to typhoon in 2019-2030 is estimated to reach up to NT$58 million
Transformation Risk: Low carbon technology transformation and increased costs 2DS Scenario Considering the cost required for "energy efficiency improvement" Estimated to receive a total investment of NT$2.05 billion in 2019-2030
Transformation Risk: Increased demand and regulations related to sustainability NDC Scenario
  1. Cost of purchasing green energy
  2. Cost of self-build power generators
  3. Carbon fee
Estimated to receive a total investment of NT$14.997 billion in 2022-2030
Well-below 2 DS Scenario
  1. Cost of purchasing green energy
  2. Cost of self-build power generators
  3. Other carbon reductions cause input costs
Estimated to receive a total investment of NT$12.646 billion in 2022-2030
Climate change indicators and goals
In order to effectively manage the impact of relevant climate change risks and opportunities on TWM, in addition to completing the Scope 1, 2 and 3 greenhouse gas inventory, we have set short-, mid- and long-term targets for greenhouse gas reductions and renewable energy use. The relevant climate risk and opportunity management objectives for improving climate change resilience are as follows:
  • Green energy for self-use/green energy wheeling for purchase/green energy investment(Note1): For details, please refer to the 2020 performance (2020 CSR report P.35) and 2030 target (2020 CSR report P.38) of the Company's total renewable energy.
  • Smart energy conservation in equipment rooms and base stations: Please refer to the Company's energy intensity performance in 2020 (2020 CSR report on P.35) and the 2030 target (2020 CSR report on P.38) for details.
  • Strengthened financial impact disclosure: As of 2021, three climate risks with high potential impacts have been quantified.
*Note1There is no green energy investment in TWM's short-term plan.