Management and Oversight Governance Mechanism for Climate- and Nature-Related Issues

Assessment and Management Processes and Mechanisms for Climate and Nature-Related Risks and Opportunities​

Enhancing Sustainability Governance and Risk Control

Hsin Tung Yang’s highest governance body has incorporated climate and nature issues into its operational decision-making. The Sustainable Development Committee is responsible for assessing risks and opportunities and formulating strategies, which, once approved, are implemented in medium- and long-term plans. The Board of Directors reviews sustainability performance on a regular annual basis. In terms of risk management, in addition to tracking material risks and regulations quarterly, the Company has established a real-time notification mechanism to comprehensively ensure that operational development and sustainability goals advance steadily in parallel.

Integrating Climate and Nature Considerations into Operational Strategy: Three Key Management Dimensions​

Locate: Location Analysis of Operating Sites in Biodiversity-Sensitive Areas

Analysis results show that operating sites located within 500 meters to 2 kilometers of a sensitive area account for 46% of all operating sites.

Evaluate: Evaluation of Nature- and Climate-Related Risks and Opportunities Analysis

Hsin Tung Yang refers to and applies the World Wide Fund for Nature (WWF) Biodiversity Risk Filter to conduct industry and regional analyses. The results indicate the following:

Dependency Factors

Based on regional and industry characteristics, Hsin Tung Yang integrates assessments from two databases and identifies factors rated within the highest category (Very High) as dependency factors for internal management. These factors include biomass supply, water purification, pest and disease control, and media review.

Impact Factors

Due to Hsin Tung Yang’s relatively simple business model, the impact factor used for internal management is the category with the highest rating (Very High). Accordingly, pollution pressure is the only impact requiring internal monitoring.

Materiality Matrix

Results of Hsin Tung Yang’s Identification of Material Climate Risk Issues Based on TCFD

Results of Hsin Tung Yang’s Identification of Material Climate Opportunity Issues Based on TCFD

Assess: Assess Natural Risks and Opportunities Through Scenario Analysis

Hsin Tung Yang conducts climate change disaster risk assessments through the "Climate Change Disaster Risk Adaptation Platform." The risks are primarily categorized into two major types: "flooding" and "slope land" risks. A tiered assessment is conducted for hazard and vulnerability.

Comprehensive Flood Disaster Risk Map​

Prepare: Develop Action Strategies and Targets for Addressing Natural and Climate Risks and Opportunities

Hsin Tung Yang follows the TCFD and TNFD frameworks to gradually establish management mechanisms for indicators and targets related to climate and nature risks and opportunities. These mechanisms serve as important assessment and management foundations for understanding the impacts of operational activities on the climate and natural environment. Hsin Tung Yang reviews target achievement annually to enhance its operational resilience in addressing climate and nature risks and opportunities.