Climate Change Management

Against the backdrop of increasing global climate change risks, the Company is well aware of the significant challenges that climate change may pose to its operations. These challenges could affect our supply chain, equipment operation, and employee safety, and may also pose a risk to overall operational stability. Therefore, we will continue to identify, assess, and manage these risks to reduce their potential impact on the Company’s operations and ensure sustainable development.
To address these risks, we have begun to strengthen our climate change adaptation measures and are actively referencing the Task Force on Climate-Related Financial Disclosures（TCFD）framework, with four core elements covered: “Governance”, “Strategy”, “Risk Management”, and “Metrics and Targets”. Through these guiding principles, we comprehensively identify the risks and opportunities that may impact our operations and take concrete actions to manage them appropriately, thereby fulfilling our commitment to sustainable operations.
 

Governance Unit

 

• Governance Level:

ANPEC has established the “Sustainable Development Best Practice Principles,” with the Board of Directors serving as the highest governance level.
The Board is responsible for supervising and making decisions on climate-related issues to strengthen corporate operational resilience under climate change：

• Management Level:

The President serves as the convener of the ESG Task Force, which includes representatives from the President’s Office, management, and various departments.
The task force is responsible for promoting and executing matters related to sustainable development. The management unit regularly identifies, assesses, prioritizes, monitors, and tracks climate risks (including physical and transition risks) and opportunities. It formulates measures to respond to extreme weather events and policy changes to ensure effective strategy implementation.

• Supervision and Reporting Mechanism:

The Company conducts an annual greenhouse gas inventory using emissions as a metric and reports the progress of inventory and verification to the Board of Directors on a quarterly basis.
Before making major decisions, a climate impact assessment must be performed using both quantitative and qualitative analyses to reduce compliance and operational risks.

• Stakeholder Communication and Disclosure:

The Company discloses information on governance, strategy, risk management, and metrics and targets in accordance with international standards (such as TCFD, ISSB, and IFRS S2).
This enhances transparency and ensures compliance with local and international regulations (such as carbon fees and emission trading systems). In addition, through education, training, and communication, the Company ensures internal support for climate strategies and publicly discloses relevant achievements to investors and external stakeholders.
  Risk Management


ANPEC’s risk management not only includes contingency plans for risks that may impact financial performance, but also encompasses risk assessments and emergency response plans for natural disasters, environmental factors, and information-related risks. The concept of prevention is deeply embedded in the corporate culture to eliminate identifiable and avoidable risks as much as possible, thereby reducing the potential losses from operational disruptions.

Facing the occurrence of climate change risks, the Company employs a four-step process to manage climate risks and opportunities, ensuring consistency with financial and operational risks.

• Identification：Identify relevant risks and opportunities with reference to the Intergovernmental Panel on Climate Change (IPCC) Assessment Report.
• Assessment：Evaluate the opportunities, impacts, and financial shocks generated by climate change on the Company’s overall operations.
• Prioritization：Establish a risk matrix to prioritize management based on the level of risk impact and the probability of occurrence.
• Monitoring and Tracking：Monitor and track carbon emissions and energy use, and report the results to the governance unit.

 
Through relevant departments’ participation and discussion, the identified climate change risks include transition risks (policy and legal, reputation), transition risks (supply disruptions, disasters caused by extreme climate change such as floods, droughts, and sea-level rise, and rising average temperatures), as well as climate opportunities (resource utilization and efficiency, shifts in market preference, attracting ESG investment, etc.).
The financial impact, probability, and timeframe of climate change risks on the Company’s overall operations have been evaluated. Based on internal risk assessment statistical results, a risk matrix has been established according to the degree of impact and probability, to prioritize highimpact and high-risk items for management. Response strategies and implementation measures have been proposed for each risk and opportunity, with continuous monitoring, tracking, and review to ensure policy implementation. Improvement results are reported to the President to ensure consistency with financial and operational risks.