Climate-related Risks and Opportunities Management System
Taiwan Sugar Corporation has established "Key Points of Risk Assessment and Management", and the content covers risk management policies, the establishment of a "Risk Management Promotion Committee", and regular assessment and control of potential risks conducted by each unit based on its operating environment, industrial changes, internal operating procedures, and public opinion from newspaper and media.
Identification and Management of Climate-Related Risks and Opportunities
TSC officially imported the framework of Task Force on Climate-related Financial Disclosures (TCFD) in 2021. In accordance with the four major aspects of governance, strategy, risk management, and indicators and goals, and with reference to the existing risk management measurement standards, the climate-related risk and opportunity assessment scale has been defined, and climate-related risk identification and assessment as well as the climate change response structure have been established.
The Department of Planning, the organizer of Business Development Promotion Group under the Corporate Sustainability Committee is responsible for convening meetings for the identification and assessment of climate-related risks and opportunities. Guidelines for Risk Assessment was referred to for the identification and assessment of the climate-related risk matrix to define risk levels. The results of the climate change risk and opportunity identification and assessment will be reviewed by the President. The annual results are submitted to the Corporate Sustainability Committee and the progress is reported at the meeting of the Net-Zero Tast Force.
Climate-related Risks and Opportunities Management Process
TSC has implemented the following management processes in response to the identified high-impact climate-related risks and opportunities.
| Climate-related Risks and Opportunities Management Process |
1. Risk management method selection and implementation: Each department is required to access the likelihood and level of impact of identified potential risk events. In addition, consideration of cost-effectiveness and prioritization, planning and execution of various risk treatment strategies, namely the four fundamental approaches, including risk avoidance, risk reduction, risk acceptance, and risk transfer, shall be carried out. |
| 2. Regularly review and revise risk management: In addition to conducting risk assessments annually in accordance with the "Key Points of Risk Assessment and Management ", each unit supervisor should, as necessary, conduct regular or irregular simulation drills or tests to confirm the effectiveness of relevant control mechanisms when risks occur. They should also pay attention to changes in risks at any time and assess and manage risks in a timely manner. |
| 3. Supervision, audit and tracking of risk management: The business supervisory units of the General Management Office shall regularly or irregularly audit the risk management status of each unit based on the needs of the nature of the business they manage, and provide guidance for improvement and list and track matters that need improvement; and, as necessary, conduct education and training related to risk management and crisis management, organize learning or field drills as needed, establish professional risk management and crisis management skills, and enhance crisis prevention and response capabilities. |
