- Climate Change Risk
Global climate change not only causes extreme weather but also directly or indirectly influences the operations of enterprises and consumption behavior of consumers. At the same time, under the pressure of carbon reduction, disaster prevention and energy shortage, costs of investments in technology improvement, equipment improvement and environmental protection have also increased annually, which will impact the competitiveness of Taiwan Sugar Corporation.
TSC refers to the framework of Task Force on Climate-related Financial Disclosures (TCFD) to take actions in response to climate change, demonstrating TSC’s responsibility and vision on climate issues in order to further allocate capitals more efficiently and move toward the sustainable development of a low-carbon economy.
In the future, TSC will implement the following corresponding measures or future planning in the face of Task Force on Climate-related Financial Disclosures (TCFD).
Aspect of Risk |
Description |
Corresponding Measures/ Future Planning |
---|---|---|
Market Risk |
The rapid expansion of electric vehicle (EV) market and the policy of reducing fuel vehicles may affect the revenues of TSC’s Petroleum Business Division. |
|
Imminent Physical Risk |
The frequency of droughts and water shortage has increased, which will affect the agriculture and production departments. |
|
Long-term Physical Risk Market |
In a 2℃ scenario, the rise of sea level will affect TSC’s existing assets. |
|
Market Opportunities |
TSC will launch low-carbon products. |
|
Other strategies to cope with climate change:
Policy |
Description |
---|---|
Promote circular economy |
Through the integration of agricultural integration, reuse of pig manure, biogas residues, and sugarcane bagasse and water recycling, a recycling network is created to reduce waste of resources and the use of fossil energy.
|
Carefully choose the timing of raw materials procurement |
Internally, TSC set up a Bulk Cereal Procurement Team and a Bulk Sugar Reserve Price Setting Team. As required by the internal control system, the team members have to collect information of bulk materials such as soybeans,
corn and sugar, the supply and demand situation and climate change situations at any time, and carefully select a procurement timing based on the production and inventory conditions. |
Strengthen the advocacy and training of energy conservation |
We organize annual training concerning green energy conservation and environmental protection to enhance our employees’ awareness of energy conservation. A total of 3 sessions of training were organized, with 112 participants in total. |
Promote green energy |
To work in line with the government’s green energy policy, solar PV power generation equipment is installed on self-owned roofs and unfavorable farming land to reduce pollution and carbon emission. To implement the carbon
reduction policy, TSC’s affiliated livestock farms continue the collection of biogas for power generation, which is in line with the development of the green energy industry. As of 2020, a total of 83 solar power generation
facilities as well as biogas power generation facilities in 4 livestock farms were installed, and the overall power generation totaled 0.27 MWh in 2020.
|
Promote green afforestation |
Afforest on sugarcane land for economic benefits such as the increase of air quality, conservation of water resources and for carbon sequestration. A total of 11,957.84 hectares of afforestation land as of 2020. |
Promote green procurement policies |
To work in line with the Green Purchasing promotion program approved by the Executive Yuan, TSC makes purchase of eco-friendly and green products. In 2020, the green procurement ratio was 99.88%. |